india top 10 social entrepreneurs

Top 10 Social Enterprises: India

Vibhu Arya2012

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What is a Social Enterprise?

• Nothing fancy, it may not even call itself social

• A Social Enterprise could be engaged in any business activity fulfilling any need (see right: Maslow’s need hierarchy). E.g. Entertainment, Nutrition, Sanitation, Communication, Livelihoods, Transportation, Education, Training, Financial Inclusion.

• Impact ranges from a pilot serving 10 people to serving 1 billion people.

• Focused on the underserved/unserved segment

• Profit is not the only motive.• Social Entrepreneurs earn respect of the

community.

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Vibhu Arya: Top 10 Social Enterprises, India

Criteria for Selecting the Top 10

• Enterprise must be ‘the’ clear leader in the category.• Serves the ‘bottom of the pyramid’.• Scaled Up and Not a Forever ‘Pilot’. i.e. impacts at least 1 Million clients,

directly/indirectly• Does not operate only on grants. Covers its costs and ensures a small

surplus.• Man Hours Spent On Operations/Field > Man Hours Inside Conference Halls• & Importantly,

▫ Wows Clients▫ Creates Employment▫ Pays statutory taxes & levies, follows the law, is driven by values i.e.

net-net, a responsible corporate citizen▫ Ensures a Double+ Bottom-line

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Sector: Renewable Energy, Health, Sanitation, EntertainmentEnterprise Name: Indian Traders + Chinese Manufacturers + www.alibaba.com

• No Ivy League Case Studies, No Awards. Plain Demand=Supply; Thanks to Chinese Manufacturers, Indian Traders = Indians at the lower end of SEC Pyramid are availing essential products which a decade earlier were luxury.▫ A Regular watch which costed $20 in 1995, now costs ~$5.▫ A DVD player which costed ~$500 in 2000,now costs $20.▫ A Solar Rechargeable Lanterns costs ~$20.▫ A Water Filter $20.▫ A Mosquito Net $5.▫ A Mobile Phone now begins at $15.

• Products:▫ Solar Rechargeable Lanterns, Mosquito Nets, Water Filters, DVD

Players, Radio Sets, Watches • USP: Chinese Manufacturers, Indian Importers and Alibaba.com

made these products accessible to the common man.• Target Clientele: Sec D & E• Impact: 500 Million+ people• Grants: No• Status: Privately Held, Anonymous• www.alibaba.com

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Sector: Transportation Enterprise Name: Indian Railways

• ~15,000 trains cover a distance equaling three & half times the distance to moon.

• 8000 Railway Stations covering entire India.

• 1.6 Million Employees• Product: Passenger and Freight• USP: Inflation Resistant Passenger Fares.

Freight subsidizes the passenger fare. Lifeline of India.

• Target Clientele: Sec C,D & E Indians• Impact: Carries 13 million passengers &

1.3 million tones of freight daily• Grants: No• Status: Government of India Owned• www.indianrail.gov.in/

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Sector: MSME’sEnterprise Name: Just Dial

• Just Dial is a local search engine with listings of over ~7.5 million products and service providers

• Products:▫ Local Search via Phone (Voice and SMS),

Internet ▫ Efficient Advertising channel for micro, small

and medium enterprises.• USP: 90% of JustDial database comprises of micro,

small and medium enterprises.• Target Clientele: Sec B, C, D & E• Impact: Covers 240 cities and receives 250,000

calls daily• with over 200 million annual searches, 200,000

advertising campaigns – ALL focused on MSME’s• Grants: No• Status: Privately Owned, 2013 IPO Candidate.• www.justdial.com

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Sector: Vocational TrainingEnterprise Name: JetKing InfoTrain

• 130 Pan India Centres• Product: Job Oriented IT Networking & Hardware

Training• USP: $150-$200/month Job Guarantee• Target Clientele: 10+2 pass outs from SEC D & E• Impact: Over ~ 0.5 Million students trained and

placed• Grants: No• Status: Profitable, Traded, Public Listed Company• http://www.jetkinginfotrain.com/

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Sector: Communication, Savings and Remittances Enterprise Name: Indian Post

• Indian postal service has the most widely distributed post office system in the world with total of 155,618 post offices of which 90% are in rural areas.

• Products:▫ Postal Services: Mail and Freight▫ Remittance facilities : money orders & postal

orders▫ No frills banking and insurance facilities

• 0.6 Million Employees• USP: Frozen in TimeTariff. Freight subsidizes

the postal tariff. Postcard (see right) costs Re 0.5 ( i.e. for a $1 send 100+ postcards) – Made it to Ripley’s.

• Target Clientele: Sec D & E• Impact: 200 Million+ people who access

Postal Banking Services. • Grants: No• Status: Government of India Owned• www.indiapost.gov.in/

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Sector: Entertainment & Education = EdutainmentEnterprise Name: Prasar Bharati (Broadcasting Corporation of India)

• 90% of India receives Prasar Bharati (DoorDarshan i.e. TV) programmes through a network of nearly 1400 terrestrial transmitters whereas 95% receives All India Radio programs through 277 stations in 23 languages and 146 dialects.

• Products: Programs on entertainment, education, agriculture, rural development, environment, social justice, health and family welfare and science and technology

• USP: Safeguards the Indian citizen’s right to be informed freely, truthfully and objectively on all matters of public interest, national or international, and presenting a fair and balanced flow of information including contrasting views without advocating any opinion or ideology of its own.

• Target Clientele: Sec D & E• Impact: Over 1 Billion Indians• Grants: No• Status: Government of India Owned• www.prasarbharati.gov.in/

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Sector: Livelihoods & TransportationEnterprise Name: $800, 80Km/L, 100 CC Motorcycles Co’s

• With non existent city public transport systems, 100 CC motorcyles provide affordable passenger and cargo transportation services to over 500 million Indians.

• Product Features:▫ Price: $800▫ Mileage: 80 km/litre▫ Seating Capacity: 2 Official, 2-6 unofficial

• Over 5 Million Employees (Direct/Indirect)• USP: 80 kilometers to a liters / can seat 2-6• Target Clientele: Sec C, D & E• Impact: Over 100 Million+ motorcycles on

Indian roads with ~8 million motorcycles sold/year.

• Grants: No• Status: Profitable, Traded Public Listed

Companies

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Sector: Health & NutritionEnterprise Name: Tata Salt

• Tata Salt is a super-refined, vacuum-evaporated iodised salt produced by Tata with a 65 percent market share in the national branded salt segment. It sells an average of 50,000 metric tons per month and is available at over 1.2 mm outlets providing a safe alternative to Rock Salt.

• Products:▫ Salt, a healthy alternative to Rock Salt.

• 0.6 Million Employees• USP: Amongst India’s most trusted brand.• Target Clientele: Sec A,B,C,D & E• Impact: Consumed by nearly 40 million

households each month• Grants: No• Status: Profitable, Traded Public Listed

Companies• http://www.tatachemicals.com/products/

tata_salt.htm

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Sector: Micro Credit Enterprise Name: 200+ Indian Microfinance Institutions (MFI’s); Bank-SHG

• India has the world’s largest Microfinance Industry serving over ~50 Million Indians. The Government has finally recognized its potential with several measures announced & planned to build a truly enabling legislative and policy environment

• Products• Microcredit

• USP: Effective pricing lower than banks.• Target Clientele: Sec C, D & E, both Urban

and Rural• Impact: 75 Million+ clients.• Grants: No• Status: Privately Held to Public Companies

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Sector: Catalyzing Innovation & Social Enterprise Institution BuildingEnterprise Name: Aavishkaar

• 21st May 2012, SEBI notified the word ‘social venture fund’. Aavishkar has been social venture investing for over a decade, catalyzing innovation at the bottom on the pyramid.

• Products: Venture Capital Investments focused on seven key sectors:▫ Agriculture and Dairy, Education, Energy,

Handicrafts, Health, Water and Sanitation, Technology for Development and Microfinance and Financial Inclusion

• USP: Aavishkar created ‘the’ category of social venture funds with several new social venture funds being raised.

• Target Clientele: Portfolio Companies target Sec D & E clients

• Impact: Collectively Aavishkar portfolio companies can impact over ~25 Million+ people directly/indirectly

• Status: SEBI Registered Venture Capital Fund.• http://www.aavishkaar.in/investee-portfolio/

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Sector: Communication & LivelihoodsEnterprise Name: Prepaid Mobile Phone Service Operators

• Indian Mobile Phone Operators are brave. They face the lowest ARPU’s and the muddiest regulatory /policy environment, globally. The prepaid mobile phone services customer is king.

• Products• Free Incoming• Outgoing @ Rock Bottom Tariff• SMS @ Rock Bottom Tariff

• USP: 1 Paisa per Second Tariff & India’s unique missed call technique of communicating.

• Target Clientele: Sec C, D & E• Impact: 800 Million+ people access Prepaid

Mobile Services for communication and facilitating business.

• Grants: No• Status: Privately Held to Public Companies• www.coai.com/

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Vibhu Arya is a ‘new’ independent consultant in the impact investing, microfinance and branchless banking [email protected]

Formerly, The ShakespeareWallaMirage At The Bottom Of The PyramidThe Three Witches of Microfinance

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