Bicycle for IndiaBy Vijaya Narayanpeddy and Nancy Sampson

Himanshu Singh (1012)

“Affordability isn’t everythingIt’s the only thing”

-Paul Polak

International Development Enterprise Founded in 1981 International not-for-profit corporation devoted to

the manufacture, marketing, and, scalable micro-irrigation and other low-cost water recovery systems throughout the developing world

Facilitates local manufacture and distribution of these products through local supply chains that sell to farmers at an affordable price

This strategy allows farmers to grow higher value and surplus crops, and in turn links them to high-value crop markets where they can realize profits from their higher yields.

Mainly work in Africa (Burkina Faso, Ghana, Ethiopia, Zambia, Zimbabwe, Mozambique), Asia (India, Nepal, Bangladesh, Myanmar, Cambodia and Vietnam) and Latin America (Honduras and Nicaragua)

Decentralized organizational structure Head office in India - New Delhi Field office in in India - Orissa, West Bengal,

Aurangabad, Bangalore, Indore, Himachal Pradesh and Udaipur

Bicycles

Bicycles

The Bicycle Project Started in the year 1992 A challenge for designing bicycle for farmers

living in rural area, to take farm produce to the market.

Those farmers, who cannot afford to buy a bicycle (i.e previously they don’t own a bicycle <Target customer>)

Would improve global environment. Rob Carter, a mechanical engineer involved in

the project

Target Area

Consumer

Producer

Urban Rural

Urban

Rural

Some facts (As of year 1994)

Total population = 952 million Approx. 50% live BPL, now 41.6% Average annual income = $270 (Rs 8100)

76% population living in rural area are farmers. 10% of farmers are “landlords” having 10-50 acre land 70% are “small farmers” having less than 10 acre land 20% do not have any land.

Income status of farmers 50% earns less than Rs 4000 per year (Rs 333.33 pm) 30% earns Rs 12,000-30,000 per year (Rs 1000 -

2500pm) 20% earns more than Rs 30,000

Some facts (As of year 1994)

In 1994, India produced 7.4 million bicycles (7.3% of the world production) - Not affordable to farmers

Price range of Hero models was Rs 930 - 2500

50%

25%

15%

10%

Market status

Hero Atlas BSA Others

Market Leader is ‘Hero’

The bicycle project IDE bicycles must have;

Simple design – could be manufactured and served in rural setting

Durable, with ease of maintenance Minimum speed capability of 6 miles an hour (twice the

speed of walking) Withstand gravel-paved or dirt roads Transport of minimum 50Kg of cargo Retail including profit margin at not more than $ 15

(approx Rs 450)

%15 is a target lesser than the minimum price in India for a bicycle.

IDE also emphasized on the price, that it should not be higher than the second hand bicycle.

Technological development Main aim to reduce the cost

Stripped bells and whistles Chins and sprockets were removed and the drive was

placed directly on the first wheel Sheet metal was to be used to make the frame

The key success of the project rested on a wheel (How??) Cheapest wheel available was of $5 each. i.e. $10 for

both wheel Frame and front fork will cost $ 10 Over all cost would reach $20 (Higher than the ceiling

retail price) Plastic Wheel can be the solution (given by Joe Montgomery)

IDE concern Their bike would be the cheapest With the increase in income gradually, target

consumer may shift towards the conventional bicycle.

Field Testing Prototype suitable to Indian farmers were

made, and tested Subcontracted to local village NGOs Mixed response

Stable/unstable Easy/difficult ride

Farmers found it uncomfortable Limited carrying capacity

The challenge To find solution for wheel and bearings

•Plastic wheel made up of nylon reinforced with fiberglass (used in wheelchair) – It would be costly•Polypropylene – found in twine used for bailing hay, will be reinforced with jute.

Samples were collected and were sent for physical

testing in University of Colorado

Later Canadian firm also shown unwillingness to make more samples

The challenge Cannondale - An American bicycle

manufacturer was very impressed with what Paul has done

Paul realized that Best fit is in Hero, but his ceiling price is too low to agree Hero upon

Or Paul should look for other industrial giants like Tatas and Birlas as partners

4 A analysis Awareness - Positive Availability - Positive Affordability - Positive Acceptability - Positive

What he should do??

SCRAP CONTINUE