acara presentation agriable sources
TRANSCRIPT
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gr ources
A Business
Solu t ion t o
Ener gy for
AcaraChallenge2010
Rosa GuzmanShannon HigginsMasumi Izawa
Rupal NaiduMadhumita SarkarRajdeep Singh
Beth Roberson Nishant Sonthalia
Priyanka Watane
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Problem : Prov ide s t able, a f fordable,
loc a l ac c ess t o ener fo r cook in
As wood becomes more difficult to foragean e pr ce o r ses, commun es
in rural India need a steady andaffordable energy source for cooking.
A myriad of efficient stoves have been
developed over the years to improve the, ,
these stoves rely on energy sources that are notalways locally sourced.
Poor road infrastructure and vastly scatteredlocalities make the distribution access to
appropriate cooking energy sources a challenge.
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Business Profile: Agri Sources
A riAble Sources connects
rural communitiesthroughout India to
stability provide an economicallyand ecologically sustainable cooking
products necessary for
affordable and efficientaffordability offer a less costlyalternative to LPG
cooking.source locally utilize localagricultural and human resources to
access decentralize thedistribution of cookin fuel for chea er
Proposed
partnership
and easier access
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Agri Sources Business Model
CommunitySelfHelpGrouprunandfinancedecentralizedbusinessforthe
productionofpelletfuelusingagriwaste
3stakeholderscontributetoimplementsolution
Self
Help
Group
SourceofFacilitator:
educator
s ovean
pelletizer
technology
manufacturer
and
nanc ngan
operations
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Agri Sources Business Model
Phase1 Developselfhelpgroupandsecurefunding
PurchasestovesforhouseandpelletizerstoproducefuelPhase2
Startup
productionPhase 3
O erationb selfhel rou
,
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Role of stakeholders in each stage of
business modelWOTRProvides AgriAbleSources
Provides
SelfHelpGroup
Phase1 Knowledge and
helpaggregating
groupandapplying
Humancapital,
community
information,
Phase2 Technology Manufacturing and
distribution
Moneyforthe
purchase of
Phase3 Assistancetostart
upandoperate
business
Employees,
revenue,andwaste
Phase4 Employees,
revenue,andwaste
Phase5 Information Em lo ees
revenue,andwaste
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Agri Sources role w ill be as fac ilitator
espons es
Identifypotential
ourceso un ng
Revenuefromsaleofcommunitypartners
Implementprojects
stovesandpelletizers
Feesfrom
continued
andmaintenance
Large,scalablemarkettranslatestoatremendousopportunityforAgriAbleSourcesin
theroleoffacilitator.
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Imagesource:GoogleImages
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Indian market presents t remendous
otential
PercentEstimated
RuralIndia
marketwe
cancapture
per
household
Revenue
138,000,000 2.0% 800INR $50,000,000
Intermsofmarketsize,thebusinessopportunitypresentsacompelling
opportunity.
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Agri Sources is cheaper and
AgriAbleSources BP EnviroFit Local/ExistingSystem
Product
800
INR
675
INR
500
2000
INR
chulhapellets
3.5INRperkg
pellets
4INRperkg
variesdepending
ontypeofstove
LPG 450INRper
cylinder;biomass
purchased (woodanddung)
freebutlimited
decentralized;no
centralized;
varies
depending
LPG
centralized
and
Distribution
costsincurreddue
tolocalsourcing
costsincurrif
fuelcannotbe
deliveredto
purchased
1.5monthstorefill
cylinder;biomassis
decentralizedhowever
community
limited
Thecombinationofanefficientstoveproduct,affordablefuel,anddirectaccesstothe
fuelsourcemakeforawellroundedconveniencefactorfortheuserwhochooses
AgriAbleSources.
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Imp lem ent ed co r rec t l y bus iness w i l l be
sus ta inab le
Potential Market is 138 million households
ep ca e str ut on mo e
Effectiveim lementationandmana ementwillmakeA riAbleaneffectiveenter rise.
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Sust a inabi l i t y of Bus iness
ManagementCompetition Consumer education
Risk
Stove models
Possibility of newer, cheapertechnology emergence
Focus on lower price
Demonstrate benefit of clean fuel
Market
Scalability; gain buy-in
Accessibility; distribution
Utilize traditional supply chainand distribution model
Empower community
Operations
Agri-waste availabilityfluctuations
Pilot Community
Pelletizer repair andmaintenance
management issues
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Imagesource:GoogleImages
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Pi lo t Com m uni t y : Bhivr i V i l lage, Pune
BhivriVillageCharacteristics
Population:4500
AverageIncome:80,000INR
yp ca occupa on:agr cu ure
Currentenergyusage:LPGandbiomass
Generalcooking
needs:
3hours
per
day
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Prac t ic a l i t y and e t hnograph ic r esearch
su est os i t ive res onseHigh Fuel Cost
INR
4,056 INR300
LPGfor
cooking
Coal for
INR
1,800
water
Field ethnography
Total: 6,156 INR8% of Average Annual Income
indicate that villagersare open to adopting
n our arget ommun ty low cost solutions.
Behaviorandeconomicssuggestthatthetargetmarketwillbeeagertoadopttheproduct.
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Supply Chain and Dist r ibut ion Model
A ri SourcesGovernment
-
Agri-Waste
Vi l l age Pel let
Produc t ion Hub
V i l lagers
Pel lets
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Cost o f an Agr iAb le So lu t ion t o t he
End User
One-time stove cost 800 INR
Biomass Pellet cost per kg 4 INR
Biomass pellets needed per hour (kg) .75 INR
Hours stove is used per day 3 hours
Biomass pellet cost per month 270 INR
Biomass pellet cost per year 3240 INR
Biomass pellet cost per year with one time stove fee 4,040 INR(less than current cost of fuel in pilot)
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Result ing in Long Term Cost Savings for
our End-User
AnnualFuelLossof AgriAble
CostSavingsfor
CostinPilot
Community
subsidyfor
LPG
Stoveand
Pelletcost
EndUserinFirst
Year
6,156INR 320INR 4,040INR 2,436INR
CostSaving
on
Fuel
frees
up
cash
for
other
uses.
Cost
savings
to
the
end
user
willincreaseinsecondyearto 3,236INRbecausestovewillbepaidfor.
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Mar ket Size: Pi lo t Com m uni t y
BhivriVillage,PuneDistrict,India
Numberof Households 900households
Capturable Marketin
Community
(50%) 450
households
StoveCost 800INR
PotentialRevenuefromSaleofStoveinMarket
360,000INR
$8,124.00
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Moving fo rw ard Pot ent ia l f ield w ork t o
imp lem ent p i lot p rojec t
Focused
Market
Research
Infrastructure
Research
customers
Build
customer
profiles
Seasonalfluctuationsin
agriwaste
I enti yprice
Proofprojectisascalableendeavorjustifiesmovingforwardwiththepilotproject.
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Imagesource:GoogleImages
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Im pac t w i l l be m on it o red and eva luat ed
w i t h m et r ic s
CurrentProblem EvaluatingMetrics GoalsforPilot
Poorindoorair
ualit from#ofhouseholdsreached 400
traditionalcooking
methods
Improvementinindoor
qualityfromnewstoveN/A
Cleanenergysources
areunaffordable
Householdexpenseonfuel
Averagedifferenceoverother
fuel sources
600rupees/month
400rupees/month
However,fullimpactwillnotbeeasilyevaluatedbecauseitwilltouchmanydifferent
areasofhouseholdandcommunit life.
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Pot ent ial impac t o f p rojec t c asc ades ac ross
var ious aspect s in t he value cha in
EnvironmentalImpact HealthEffects
dioxideemissions
Aestheticimprovements
frompoorindoorairquality
SocialChanges EconomicGrowth
pursuits
revenue
Localemploymentopportunities
AgriAbleSourceshaswithinitatriplebottomlineimpactofeconomy,peopleand
env ronment.
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Imagesource:GoogleImages