CHANAKYA NATIONAL LAW UNIVERSITY

PROJECT REPORTS OF 1st SEMESTER 2011

SOCIOLOGY

TOPIC: SAMMAN FOUNDATION OF PATNA

Submitted By:-

ARPITA

534

1st semester

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ACKNOWLEDGEMENT

Any activity big or small is a result of collective efforts of several individuals and this project report is also a sequel of several individuals who have given their valuable contribution in fulfilment of this project

At first I would like to express my profound gratitude towards my faculty of Sociology, Dr.SANGEET KUMAR who has provided me an opportunity to resent this project and was available with the valuable information whenever it was needed.

I would also like to acknowledge a deep sense of gratitude to my friends and my roommate for their immense support and guidance.

Last but not the last, my overriding debt continues to all the people who were directly or indirectly associated with this project.

AIMS AND OBJECTIVES2

The aim behind this project is to inform the reader about the Sammaan Foundation which has been established by IRFAN ALAM. This organisation has been established by this entrepreneur to work for the welfare of the one of the most backward classes of the society that is the rickshaw pullers. It has been established with the view to increase their standard of living by connecting them through the main stream.

HYPOTHESISSammaan Foundation is an organisation established to help the rickshaw pullers to live and work with their prestige enact. The researcher expects that this foundation has been successful in the aim it was established for.

This project work is based on this hypothesis. The observation after the research will compared to the hypothesis to gain a conclusion.

CONTENTSIntroduction……………………………..5

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About the organisation………………….6Photo gallery……………………................7-8Awards and acclamations……………….9About Irfan Alam……………………….10Rickshaw respect; the work of Irfan Alam…………………………………….10-13Interview with irfan alam………………14-17Interview from rickshaw pullers ……….18 Conclusion……………………………….19Bibliography……………………………...20

INTRODUCTION

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The term SammaaN means recognition to all. Thus, a society based on equality is the dream that SammaaN Foundation pursues. It is a company which was registered under section 25 of the Company’s Act 1956.

SammaaN Foundation was established on January 25, 2007, its aim is to link the socio economically most descendant class with the main stream by empowering them through training, capacity building, education and financial support. In India the unorganized section forms almost 20 percent of the total population. Of this 20 percent, 92, and 00,000 are rickshaw operators with the majority of them being seasonal migrants.Hence the SammaaN Foundation is working towards organizing the rickshaw-pulling sector. It is constantly trying to bring this class under a uniform system by providing those opportunities to grow and strengthen their livelihoods. Employment generation, women empowerment, children’s education, health services and micro credit are the key areas where the organization is gradually making its leap.

About the organisation……

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Irfan Alam has started his unique grassroots initiative which streamlines the workings of rickshaw pullers in India by bringing them under the umbrella of his firm -- Sammaan (respect in Hindi). Launched in 2008, Sammaan currently has 10 million rickshaw pullers under its operations, across a swathe of Indian cities. The venture has helped modernize the cycle rickshaw sector which constitutes a sizeable 30 per cent of India's urban transportation.

Rickshaw design is integral to the company's success. Ergo, Sammaan has established a full-fledged R&D center in Patna, the capital city of Bihar, to improvise on the old rickshaw models and morph them into more operator-friendly and profitable vehicles. The center employs 19 people, including three engineers, who are involved in grassroots innovation for the rickshaws.

Irfan Alam is also the founder of SammaaN Women Association, which aims to empower socially descendant women through education, training and livelihood opportunities. With the expansion of business -- Sammaan's operations have ratcheted up from one city to 10 in four states. The company's client list too, has swelled to over a dozen and includes reputed national players like Punjab National Bank, Bharti, Hindustan Times and Bisleri. Next in line is low cost housing for rickshaw operators, carbon trading opportunities and a public offer by 2012. The company is expecting 400 per cent growth this year, which will increase its turnover manifold from the current year.

PHOTO GALLERY6

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Awards & Acclamations8

1. Invited for Presidential Summit, 2010 at Washington by the US President Barack Obama.

2. Winner of Business World's "Most Promising Entrepreneur Award".

3. Winner of " Young Indian leader" award by CNN-IBN.

4. He has been selected among "40 Youth icons of India" by India Today.

5. "24 Youth icons of India" by India Today Aspire.”

6. "India's Best 30 Youths" by Times of India.”

7. Featured in the “The Guardian, London and The Economist.”

8. A finalist of TATA NEN "Hottest Startups Awards"

9. Winner of World Bank Innovation Award.

10. A case has been shared in the major universities across the globe like Harvard Business School and Stanford University.

11. Winner of ZEE TV reality show "Business Baazigar" (First ever Entrepreneur hunt).

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ABOUT IRFAN ALAM……

Irfan Alam is the Founder and Chairman of SammaaN Foundation, an Indian company which organizes rickshaw pulling and manufacturing sector. He is also the founder of SammaaN Women Association, which provides education, training and employment opportunities for women. He has also founded MATiNS Enterprise, an interactive outdoor advertising, marketing and portfolio management company. He holds the post of Executive Director, in TiE Patna Chapter.

Rickshaw Respect:

The Work of Irfan Alam

 Perhaps fifty rickshaw pullers huddle around Irfan Alam as he briefs them about the nuances of his company’s operations. The entrepreneur fields queries and accepts inputs and suggestions from the operators to enhance his services. The session is then rounded off with piping hot cups of tea that help build camaraderie amongst the congregation.                Says the savvy businessman, “I make it a point to keep my rickshaw operators in the loop about ways to improve business and how they can enhance the company’s profitability and their own incomes.”                And that he does. In fact the 27-year-old has made a roaring success of his unique grassroots initiative which streamlines the workings of rickshaw pullers in India by bringing them under the umbrella of his firm -- Sammaan (respect in Hindi).                Launched in 2008, Sammaan currently has 10 million rickshaw pullers under its operations, across a swathe of Indian cities. The venture has helped modernize the cycle rickshaw sector which constitutes a sizeable 30 per cent of India’s urban transportation.                “The biggest challenge of my venture was to convert a huge base of cycle rickshaws into an interactive out-of-home advertising medium and a marketing engine-cum-transaction point,” says Alam. He has also gleaned a cachet of awards

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from the Indian government and media channels for his unique business. “Everybody talks of corporate social responsibility but not of corporate social sustainability. So I tried cobbling together a business model that was workable and sustainable.”                Such wisdom is hardly surprising for a young man who had entrepreneurial seeds sown in his mind while his peers were still playing with toys. In fact at 13 years, the youth was trading in stocks. And by the time he turned 14, he had already launched a portfolio management venture!                But why rickshaws? Surely for an alumnus of India’s blue-chip management school -- the IIM (Indian Institute of Management), Ahmedabad, there was no dearth of employment opportunities? “I realized that of all forms of urban transport in India, the cycle rickshaw sector was the most unorganized. Also, the idea had the potential to serve as a logistics solution in cities, towns and the rural market which the corporate sector finds difficult to penetrate.”                Besides, the challenges the model offered appeared quite thrilling to the spunky entrepreneur. “The most critical challenge,” says Alam, “was working with the marginalized section of society. I needed to be exceptionally patient to give them a clear perspective of the company’s objectives,” he says.                For precisely the same reason – that the business centered around illiterate and underprivileged people -- it was tough to get loans to bankroll his venture. Finally, Alam had to pool his own resources with friends helping out to collect seed money of about Rs 10 lakh.                “Another, even bigger obstacle, was to make clients understand that social enterprises can be as self-sufficient an profitable as any other business,” says Alam. “In India, 95 per cent rickshaw operators do not even own the rickshaws. They just rent them out for Rs 20 a day. So my concept looked weak on paper.”                But gradually things fell into place with Alam’s diligence. “In fact we’re the only company of its kind in the world to work in this segment,” informs Alam. “Even in India, there’s no organized player in the market, who are offering similar services.”

       

       According to Alam’s research, over 95 per cent rickshaw operators do not own their vehicles in India but rent them out daily. So the relationship between the fleet owners and the operators did not grow beyond this exchange level. But through Sammaan’s system, rickshaws are given free to the operators though a nominal amount is charged as maintenance fee.

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               The entrepreneur’s profitability is ensured by advertising and brand promotion on the rickshaws. “Our rickshaws are designed in such a way,” elaborates Alam, “that the advertisers get ample space to put their displays on the side, front and back panels of our vehicles.”                There’s third party product selling as well -- with items such as mineral water, fruit juices sold from a basket displayed in front of the rickshaws. The sale of these products not only makes the ride more comfortable for the commuter but also augments the rickshaw operators’ -- and Sammaan’s -- profitability.                Rickshaw design is thus integral to the company’s success. Ergo, Sammaan has established a full-fledged R&D center in Patna, the capital city of Bihar, to improvise on the old rickshaw models and morph them into more operator-friendly and profitable vehicles. The center employs 19 people, including three engineers, who are involved in grassroots innovation for the rickshaws.                According to Alam, as compared to other modes of outdoor advertising, Sammaan’s rates work out to almost 90 per cent cheaper. “If a company hires 100 of our rickshaws for promotion in a given town -- and if one rickshaw covers an average of 10 km -- then the advertised product will be seen by almost half the town. Since a rickshaw is the best medium for traveling short distances, our clients can reach the residential streets and even the rural and semi rural areas where no other mode can penetrate,” he says.                Sammaan’s operators -- whose earnings have now doubled from roughly Rs 1,500 to Rs 3,000 (USD 60) per month -- are also given free uniforms. Every operator also holds a saving bank account in a local bank. Not that this was a cinch to work out. “The biggest roadblock lay in convincing the bankers to open bank accounts for the rickshaw operators,” says Alam. But today, with the venture having met with phenomenal success, the local banks vie with each other to bankroll Sammaan’s ventures.                The rickshaw operators are also provided with free accidental insurance up to Rupees one lakh. To further benefit the rickshaw operators, the company also imparts free education to the operators’ families under its education program. The families’ ladies are taught vocational crafts -- like stitching, tailoring, embroidery --to augment the familial income.                With the expansion of business -- Sammaan’s operations have ratcheted up from one city to 10 in four states. The company’s client list too, has swelled to over a dozen and includes reputed national players like Punjab National Bank, Bharti, Hindustan

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Times and Bisleri. Next in line is low cost housing for rickshaw operators, carbon trading opportunities and a public offer by 2012. The company is expecting 400 per cent growth this year which will increase its turnover manifold from the current Rs one million.                Unsurprisingly, Sammaan’s operations have transformed the lives of thousands of rickshaw operators. Says Shivcharan Manjhi, 35, an operator, “My life has changed completely. My earnings have doubled and people respect me much more. Earlier, many customers would abuse me or refuse to pay me. But ever since I joined this new company and got a new rickshaw and a uniform, my clients behave respectfully with me.”                Manjhi explains how his newfound confidence has helped him give up alcoholism and smoking. “Earlier, I’d squander most of my money on alcohol and tobacco. But ever since I’ve started going to Sammaan’s counseling cell, I’ve given up drinking and smoking. Last year, I [paid for the marriage of] my sister ... from the money I was able to save.”                

INTERVIEW WITH IRFAN ALAM

 

Irfan Alam is one of India’s newest Ashoka Fellows. Through SammaaN, he is making rickshaw operators and their families ‘full economic citizens’ by building channels for

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essential services such as banking, individual access to credit and health and making the rickshaw a ‘mobile small shop’ for the sale of various products and services. Here’s our recent interview with him.

Irfan Alam with rickshaw operators

 

1.      You have just been elected as an Ashoka Fellow. What impact has that had on your work?

Well, it is indeed an honor to be chosen as a sought after Ashoka Fellow. Certainly, I am being noticed since the official announcement just came in. Hopefully now I will see the impact on my work and my life as well.

2.      How did the Ashoka selection process impact you?

The rigorous selection process has given me a new approach to look at my work and to learn how to change the world. 

3.      What are some of the major challenges you have faced in your work and how did you overcome them?

I remember  how we started; we didn’t even have an office to begin with and meeting clients in Delhi was a problem. We managed not to reveal our office-less status, though, and conducted meetings at coffee shops across the city. I don’t think there is a single coffee shop in Delhi we haven’t used as a meeting place. Business cards were printed at home, and the only concrete ‘address’ I could provide was a residential one (I kept my fingers crossed no one would just drop in!).

I was told it is not going to work and no banker was willing to lend a rickshaw operator because of his migratory nature. No client was ready to use the rickshaw as an advertising or distribution medium too. It took my blood but the thing which made all difference was my patience to make it happen.  Soon, we had a rickshaw yard from which we started operating

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in Noida where the rickshaws were parked at night. Even here, the ‘office’ was a temporary shed-like structure without enough chairs, so clients would often be requested to perch on rickshaws to conduct meetings.

But the most frustrating moment was when three days after our launch in Noida, a fire broke out in the village where many operators lived. Their houses were damaged and several rickshaws were badly damaged. But everyone rallied around, worked day and night, and even the manufacturers repaired the rickshaws free of cost. This support from the rickshaw operator’s community gave me great strength to work a bit extra, which made all the difference.

Good Luck Rally (on rickshaw!) for TEAM India for ICC Cricket World Cup 2011 - Organized by SammaaN & TiE Patna Chapter

 

4.      Where do you draw inspiration and strength?

My parents are my great strength and source of energy. They never been to school but insured the best possible education to a large family (7 kids including me). They never imposed anything on any of us (siblings) but ensured we all performed best in  whatever we chose. They have been instrumental in shaping the future of our family by sacrificing all their comforts.

5.      What are some books and films which have had impact on you (if any)?

I liked “Power of Positive thinking“, “How to Change the World” and “The Fortune at the Bottom of the Pyramid“.

6.      Who has inspired you greatly and why?

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My parents and Mahatma Gandhi because of one simple reason i.e. their sacrifice.

Irfan at the Presidential Summit on Entrepreneurship in Washington

 

7.  What have you have learnt from rickshaw operators?

My learning is that – If you work with downtrodden people and community, you will get great loyalty from them. Since they have been marginalized because of any reason so whosoever work for their upliftment they treat him like GOD and I feel this will give a new meaning to the corporate for client loyalty. This reciprocal behavior is going to be the best tool for their upliftment.

8.  What have you learnt about yourself from this journey?

I realize that – I am capable in handling any kind of pressure and can easily work in difficult situations. I also realize that I am here to play a long inning  and to make big difference in their lives. So, I am not supposed to waste my time and energy but to utilize them at best in the best interest of this downtrodden community. 

9.      Which strengths and virtues of yours have been most useful during your journey? Could you give examples of how.

Patience, Determination and Hard working attitude. There have been many occasions when my team and well wishers lost hope and thought it is going to be impossible but I kept telling them that I am going to make it and we made it. 

I remember just after three days of  pilot launch of  our project in Noida, a fire broke out in the village where many rickshaw operators lived. Their houses were damaged and several

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rickshaws were badly damaged. Everyone in my team had lost hope but I rallied everyone around, worked day and night and recovered from huge loss and started operations again in three days. 

10.   It was a casual conversation with a rickshaw operator asking for drinking water that  gave you the idea of working with them. Many don’t take notice of such “mundane” incidents; yet this one incident sparked a movement. What made you take notice?

Honestly speaking it was probably an entrepreneur inside me, who was awake that time. I was into entrepreneurial activities since my childhood. From my comic library to my portfolio management company at 13, I leveraged opportunities. This incident made me think of an unusual market. When I researched I found its a massive market which is highly un-organized and there is crying need to uplift the whole community. That one casual conversation with a rickshaw operator never ended; I traveled across the state in rickshaw and must have interviewed more than 5000 rickshaw operators to understand the overall market and decided to organize it by involving the community.   

11.   What are some suggestions you have for those who want to have deep impact on the world?

Every work has got its own impact but to have more social impact, my only suggestion would be – Try to differentiate between “Profit & Benefit”. You have to have your heart at the right place to choose Benefit over Profit. Once you decide to go with benefit, the world will shower blessings on you.

12.   Is there anything else you would like to add to help others understand and learn from your journey?

I am a die-hard entrepreneur and only believe  in making things done. I would like to convey all the potential entrepreneurs – “Believe in Your Dreams and try until you succeed.”

INTERVIEW FROM THE RICKSHAW PULLERS

1. Are you happy to be the part of Sammaan Foundation ( Manoj kumar,Age 44)?

Yes, I am very happy that I got the support from this organisation. It has helped me a lot.

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2. What makes you feel different from other rickshaw pullers( Hari Singh,Age 52)?

I am able to earn more than other rickshaw pullers now with the same level of effort.

3.Has your income increased( Mahendra nath, Age 32)?

Yes. My income has almost doubled. . Even my standard of living has improved.

4.Do you encourage other rickshaw pullers to be the part of this organisation?

Yes I do encourage many of them to be the part of it.

5.Wat do u feel about Irfan Alam sir?

He is just like God to us. He is no less than it.

CONCLUSIONThus on the basis of above project report and the field work the researcher has concluded that the organisation Sammaan Foundation established by Irfan Alam has rigorously for the welfare and progress of rickshaw pullers. This organisation has helped them increase their standard of living and has connected them with the main stream. The researcher totally agrees from the hypothesis made about the project. While doing the field work researcher came across many things which helped it to change its view about many things.

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BIBLIOGRAPHY

1. INTERNET SOURCES

2. MAGAZINES

3. FIELD WORK

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