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TRANSCRIPT
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July 2011
Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and Pensions, Government of Indiahttp://indiagovernance.gov.in/
Researched and Documented by
OneWorld Foundation India
Sabras: Empowering Salt Workers in Gujarat
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TRANSPARENCY AND
Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Government of India
Table of Contents Executive Summary ................................
Background ................................
Objective ................................................................
Working Design ................................
Ownership of SABRAS................................
Company composition
SABRAS Supply chain ................................
Company finances ................................
Methodology ................................
Key Stakeholders................................
Lessons learned ................................
Creating an empowered community
Establishing a brand through institutional partnerships
Utilizing environment friendly technology
Developing a successful business model
References ................................
Appendix A Interview Questionnaire
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
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ny composition ................................................................................................
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Creating an empowered community ................................................................
Establishing a brand through institutional partnerships ................................
Utilizing environment friendly technology ................................................................
Developing a successful business model ................................................................
................................................................................................................................
Interview Questionnaire ................................................................
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
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TRANSPARENCY AND
Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Government of India
Executive SummaryWith an annual export of 2.25 million tonnes, India is among the leading salt producing
countries in the world.1 Majority of this salt is manufactured in the Little Rann of Kutch salt
pans of Gujarat. The salt workers, locally known as Agariyas, produce sa
year in a harsh coastal and desert environment. They are also devoid of basic amenities such as
drinking water, schools and hospitals. Furthermore, these salt workers are paid low wages,
suffer heavy exploitation through traditional m
percent of the total salt value in the market.
To improve the quality of life of Agariyas
Saline Area Vitalization Enterprise Ltd. (SAVE) a techno
Gujarat has established a social enterprise called SABRAS Processing and Marketing Pvt. Ltd.
SABRAS provides procurement, processing and marketing services to small scale salt workers
in Little Rann of Kutch.
In SABRAS business model, salt workers are shareholders of the company and produce salt, the
management team ensures proper access to market, credit and techn
organised such that SABRAS directly buys salt from the workers at higher than market price,
and then sells it in bulk to processors and network of distributors.
Additionally, to improve productivity, SABRAS provides environment frie
effective solar water pumps to reduce the dependence of salt workers on inefficient diesel
pumps for salt production.
This document aims to highlight the working design and impact of the SABRAS model thus
far. It also touches upon the compa
model like SABRAS should be replicated elsewhere.
1 Bay of Bengal Programme, 2011-07-19, http://www.bobpigo.org/bbn/march_06/Page%2037
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
Summary With an annual export of 2.25 million tonnes, India is among the leading salt producing
Majority of this salt is manufactured in the Little Rann of Kutch salt
pans of Gujarat. The salt workers, locally known as Agariyas, produce sa
year in a harsh coastal and desert environment. They are also devoid of basic amenities such as
drinking water, schools and hospitals. Furthermore, these salt workers are paid low wages,
suffer heavy exploitation through traditional middlemen and traders, and earn only 1 to 8
percent of the total salt value in the market.
To improve the quality of life of Agariyas and achieve greater efficiency in salt production,
Saline Area Vitalization Enterprise Ltd. (SAVE) a techno-marketing service organisation in
Gujarat has established a social enterprise called SABRAS Processing and Marketing Pvt. Ltd.
urement, processing and marketing services to small scale salt workers
In SABRAS business model, salt workers are shareholders of the company and produce salt, the
management team ensures proper access to market, credit and technology. The process is
organised such that SABRAS directly buys salt from the workers at higher than market price,
and then sells it in bulk to processors and network of distributors.
Additionally, to improve productivity, SABRAS provides environment frie
effective solar water pumps to reduce the dependence of salt workers on inefficient diesel
This document aims to highlight the working design and impact of the SABRAS model thus
far. It also touches upon the companys future plans with the aim that a scalable business
model like SABRAS should be replicated elsewhere.
http://www.bobpigo.org/bbn/march_06/Page%2037-40.pdf
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
2
With an annual export of 2.25 million tonnes, India is among the leading salt producing
Majority of this salt is manufactured in the Little Rann of Kutch salt
pans of Gujarat. The salt workers, locally known as Agariyas, produce salt for eight months a
year in a harsh coastal and desert environment. They are also devoid of basic amenities such as
drinking water, schools and hospitals. Furthermore, these salt workers are paid low wages,
iddlemen and traders, and earn only 1 to 8
and achieve greater efficiency in salt production,
marketing service organisation in
Gujarat has established a social enterprise called SABRAS Processing and Marketing Pvt. Ltd.
urement, processing and marketing services to small scale salt workers
In SABRAS business model, salt workers are shareholders of the company and produce salt, the
ology. The process is
organised such that SABRAS directly buys salt from the workers at higher than market price,
Additionally, to improve productivity, SABRAS provides environment friendly and cost
effective solar water pumps to reduce the dependence of salt workers on inefficient diesel
This document aims to highlight the working design and impact of the SABRAS model thus
nys future plans with the aim that a scalable business
-
TRANSPARENCY AND
Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Government of India
Background India is currently the third largest salt
salt in the country is produced in Gujar
Agariyas, are engaged in salt production activity in Little Rann of Kutch (LRK).
Agariyas work in highly exploitative and
subhuman conditions; long term exposure
to the salt and hostile desert environment
makes them extremely susceptible to
various health hazards. Conditions are
further worsened by their lack of access to
basic amenities like drinking water, shelter,
protective clothing, education and
healthcare.
Economically also Agariyas do not receive
their fair share of profits. During the salt
2 Bay of Bengal Programme, 2011-07-19, http://www.bobpigo.org/bbn/march_06/Page%2037
Figure 2: Salt Workers in Kutch
Source: SABRAS
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
India is currently the third largest salt producing country in the world, and 70 percent of the
salt in the country is produced in Gujarat.2 About 70,000 small salt producers, locally known as
Agariyas, are engaged in salt production activity in Little Rann of Kutch (LRK).
work in highly exploitative and
subhuman conditions; long term exposure
to the salt and hostile desert environment
makes them extremely susceptible to
various health hazards. Conditions are
further worsened by their lack of access to
drinking water, shelter,
protective clothing, education and
Economically also Agariyas do not receive
their fair share of profits. During the salt
production season from October to April,
Agariyas borrow money from traders and
money lenders to operate and maintain the
diesel pumps used in the salt production
process. They repay the loan with the salt
they produce. Due to this, reason, the
Agariyas are left with a very small amount
of salt, which they sell to the traders at a
very low price of around
ton. This salt goes on to be sold at
per metric ton in the market. The salt
workers get only 1-8 percent of the total
profit made in the salt supply chain.
http://www.bobpigo.org/bbn/march_06/Page%2037-40.pdf
Figure 1: Little Rann of Kutch
Source: Google Images
LR K
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
3
producing country in the world, and 70 percent of the
small salt producers, locally known as
Agariyas, are engaged in salt production activity in Little Rann of Kutch (LRK).
production season from October to April,
Agariyas borrow money from traders and
o operate and maintain the
diesel pumps used in the salt production
process. They repay the loan with the salt
they produce. Due to this, reason, the
Agariyas are left with a very small amount
of salt, which they sell to the traders at a
around Rs.80 per metric
his salt goes on to be sold at Rs. 7,200
per metric ton in the market. The salt
8 percent of the total
K
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TRANSPARENCY AND
Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Government of India
While the government agencies and NGOs have helped the salt workers, these efforts have
largely concentrated on providing basic amenities, and have failed to address the economic
hardships faced by them.
Saline Area Vitalization Enterprise Ltd. (SAVE), an Ahmedabad based technical and marketing
service provider, conducted a study on the condition
districts of Gujarat in 2005. The study highlighted the extent of the economic problems faced by
the salt producers community and the urgent need for their economic empowerment. As a
response to the findings of the study, SAVE created SABRAS Processing and Marketing Pvt.
Ltd. (SPML), in joint ownership with salt workers, in 2007, to provide technical and marketing
assistance to the salt workers so that they make profits that are proportionate to the hard work
and labour that they put in.
SABRAS currently operates in ten villages of Halvad and Dhrangadhara talukas of
Surendranagar district in Gujarat.
of Rs. 120 per metric ton, processes the salt and then sells it to various salt distributors.
SABRAS also provides technological assistance to the Agariyas by facilitating replacement of
the diesel pumps with innovative solar pumps, which increases the efficiency and productivity
of the salt workers.
Objective SABRAS seeks to correct the exploitative market practices in Indias salt industry. It aims to:
improve the quality of life of the Aga
increase Agariyas access to institutional credit, markets and technology
offer fair trade prices in the procurement of salt and create an access to distribution
channels.
Working Design In the SABRAS model, Agariyas
management and technical expertise and experience to provide the Agariyas with access to
market, credit and technology
OWNERSHIP OF SABRAS
SABRAS was established as a producers owned, producers
controlled and professionally managed for
The company at present has an equity of Rs. 5.5 lakhs, of
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
While the government agencies and NGOs have helped the salt workers, these efforts have
ly concentrated on providing basic amenities, and have failed to address the economic
Saline Area Vitalization Enterprise Ltd. (SAVE), an Ahmedabad based technical and marketing
service provider, conducted a study on the condition of the salt producer community in several
districts of Gujarat in 2005. The study highlighted the extent of the economic problems faced by
the salt producers community and the urgent need for their economic empowerment. As a
he study, SAVE created SABRAS Processing and Marketing Pvt.
Ltd. (SPML), in joint ownership with salt workers, in 2007, to provide technical and marketing
assistance to the salt workers so that they make profits that are proportionate to the hard work
operates in ten villages of Halvad and Dhrangadhara talukas of
Surendranagar district in Gujarat. It procures salt from the salt workers at an approximate price
of Rs. 120 per metric ton, processes the salt and then sells it to various salt distributors.
SABRAS also provides technological assistance to the Agariyas by facilitating replacement of
esel pumps with innovative solar pumps, which increases the efficiency and productivity
SABRAS seeks to correct the exploitative market practices in Indias salt industry. It aims to:
improve the quality of life of the Agariyas
increase Agariyas access to institutional credit, markets and technology
offer fair trade prices in the procurement of salt and create an access to distribution
In the SABRAS model, Agariyas use their skills to provide the salt while SAVE uses its
management and technical expertise and experience to provide the Agariyas with access to
market, credit and technology.
SABRAS
SABRAS was established as a producers owned, producers
controlled and professionally managed for-profit company.
The company at present has an equity of Rs. 5.5 lakhs, of 14%38%
Shareholders of SABRAS
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
4
While the government agencies and NGOs have helped the salt workers, these efforts have
ly concentrated on providing basic amenities, and have failed to address the economic
Saline Area Vitalization Enterprise Ltd. (SAVE), an Ahmedabad based technical and marketing
of the salt producer community in several
districts of Gujarat in 2005. The study highlighted the extent of the economic problems faced by
the salt producers community and the urgent need for their economic empowerment. As a
he study, SAVE created SABRAS Processing and Marketing Pvt.
Ltd. (SPML), in joint ownership with salt workers, in 2007, to provide technical and marketing
assistance to the salt workers so that they make profits that are proportionate to the hard work
operates in ten villages of Halvad and Dhrangadhara talukas of
It procures salt from the salt workers at an approximate price
of Rs. 120 per metric ton, processes the salt and then sells it to various salt distributors.
SABRAS also provides technological assistance to the Agariyas by facilitating replacement of
esel pumps with innovative solar pumps, which increases the efficiency and productivity
SABRAS seeks to correct the exploitative market practices in Indias salt industry. It aims to:
increase Agariyas access to institutional credit, markets and technology
offer fair trade prices in the procurement of salt and create an access to distribution
use their skills to provide the salt while SAVE uses its
management and technical expertise and experience to provide the Agariyas with access to
14%
48%
Shareholders of SABRAS
Agariyas Share
Promoter's
(SAVE) Share
Private Equity
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TRANSPARENCY AND
Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Government of India
which 14 percent is held by 28 small salt producers, 48 percent by SAVE while the rem
percent is held as private equity. By making salt workers shareholders of the company,
SABRAS is providing them with the opportunity to become owners and increase their profits.
The salt workers paid for their share in the form of salt. As shareh
the risks and profits that the company makes.
COMPANY COMPOSITION
The Board of Directors includes two representatives of the agariyas union .i.e. the
Hitrakshak Samuh and one representative of SAVE ltd. The board col
prices, quality of the salt, profit sharing and technical improvements.
SAL
Figure 3: Traditional
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
which 14 percent is held by 28 small salt producers, 48 percent by SAVE while the rem
percent is held as private equity. By making salt workers shareholders of the company,
SABRAS is providing them with the opportunity to become owners and increase their profits.
The salt workers paid for their share in the form of salt. As shareholders, the salt workers share
the risks and profits that the company makes.
The Board of Directors includes two representatives of the agariyas union .i.e. the
and one representative of SAVE ltd. The board collectively takes decision on
prices, quality of the salt, profit sharing and technical improvements.
Figure 4: SABRAS Intervention Model
Figure 3: Traditional Salt Supply Chain
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
5
which 14 percent is held by 28 small salt producers, 48 percent by SAVE while the remaining 38
percent is held as private equity. By making salt workers shareholders of the company,
SABRAS is providing them with the opportunity to become owners and increase their profits.
olders, the salt workers share
The Board of Directors includes two representatives of the agariyas union .i.e. the Agariya
lectively takes decision on
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TRANSPARENCY AND
Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Government of India
SABRAS SUPPLY CHAIN
To facilitate better access to
undertakes the following activities:
1) Procuring, transporting, processing,
packaging and marketing the salt produced
by the salt workers: SABRAS directly
procures salt from the salt workers at a price.
56 percent higher than the price offered by
the local traders. The salt is then sold in bulk
to processors and wholesalers, who further
supply it for industrial usage or for sale
through retail.
2) Provision of technical inputs to the salt workers
the salt workers in enhancing overall productivity. The salt workers are provided enhanced
access to credit for maintaining their diesel pumps, and are al
traditional pumps with efficient solar pumps. SABRAS has already begun testing these
solar pumps on a pilot basis.
At present, there are two solar pumps being used by the salt workers with the help of
National Bank for Agriculture and Rural Development
investment for solar pumps is high, in the long term these turn out to be more cost efficient
than the diesel pumps. Salt workers at present, can rent these solar water pumps from
SABRAS. Gradually over a period of five to seven years they are expected to pay periodic
payments either in the form of salt or cash for these pumps, after the completion of this
payment the solar water pumps will belong to the salt workers. The maintenance of the
solar pumps is handled by the professionals of SABRAS who provide inputs to the salt
workers on efficiently using the pumps and give them technical support.
3) Other Activities: SABRAS has also established mobile shelters for the salt workers and their
families to stay in the desert during the eight month production season. Salt workers have
also been provided with multipurpose community shelters for meetings, entertainment etc.
A Community Resource Centre (CRC) has been set up at village Jogad. The centre is used
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
UPPLY CHAIN
To facilitate better access to market, SABRAS
undertakes the following activities:
Procuring, transporting, processing,
packaging and marketing the salt produced
: SABRAS directly
procures salt from the salt workers at a price.
56 percent higher than the price offered by
the local traders. The salt is then sold in bulk
to processors and wholesalers, who further
supply it for industrial usage or for sale
Provision of technical inputs to the salt workers: SABRAS provides technical assistance to
the salt workers in enhancing overall productivity. The salt workers are provided enhanced
access to credit for maintaining their diesel pumps, and are also encouraged to replace the
traditional pumps with efficient solar pumps. SABRAS has already begun testing these
solar pumps on a pilot basis.
At present, there are two solar pumps being used by the salt workers with the help of
ulture and Rural Development (NABARD). Although the initial
investment for solar pumps is high, in the long term these turn out to be more cost efficient
than the diesel pumps. Salt workers at present, can rent these solar water pumps from
ly over a period of five to seven years they are expected to pay periodic
payments either in the form of salt or cash for these pumps, after the completion of this
payment the solar water pumps will belong to the salt workers. The maintenance of the
pumps is handled by the professionals of SABRAS who provide inputs to the salt
workers on efficiently using the pumps and give them technical support.
: SABRAS has also established mobile shelters for the salt workers and their
o stay in the desert during the eight month production season. Salt workers have
also been provided with multipurpose community shelters for meetings, entertainment etc.
A Community Resource Centre (CRC) has been set up at village Jogad. The centre is used
Figure 5: Solar Panels for the Water Pumps
Source: SABRAS
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
6
: SABRAS provides technical assistance to
the salt workers in enhancing overall productivity. The salt workers are provided enhanced
so encouraged to replace the
traditional pumps with efficient solar pumps. SABRAS has already begun testing these
At present, there are two solar pumps being used by the salt workers with the help of
NABARD). Although the initial
investment for solar pumps is high, in the long term these turn out to be more cost efficient
than the diesel pumps. Salt workers at present, can rent these solar water pumps from
ly over a period of five to seven years they are expected to pay periodic
payments either in the form of salt or cash for these pumps, after the completion of this
payment the solar water pumps will belong to the salt workers. The maintenance of the
pumps is handled by the professionals of SABRAS who provide inputs to the salt
workers on efficiently using the pumps and give them technical support.
: SABRAS has also established mobile shelters for the salt workers and their
o stay in the desert during the eight month production season. Salt workers have
also been provided with multipurpose community shelters for meetings, entertainment etc.
A Community Resource Centre (CRC) has been set up at village Jogad. The centre is used
Figure 5: Solar Panels for the Water Pumps
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TRANSPARENCY AND
Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances
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for research, development and training the salt workers to better manage the salt
production process and their profits.
COMPANY FINANCES
SABRAS began with an initial capital of Rs. 100,000 out of which Rs
the salt workers and 26,000 by SAVE. SABRAS also received a
US based non profit organization First Light ventures. Currently the companys value is 5.5
lakhs. NABARD, local banks and the Government o
production and purchase of solar pumps.
On an average in every salt production season salt workers produce 600 metric tonnes of salt.
Out of this total production 400 metric tonnes is used for repayment of credit
pumps) or as rent for the solar pumps. The remaining 200 metric tonnes is procured at the rate
of approximately Rs. 120 per metric ton. The salt is finally sold in the market at Rs. 7200 per
metric ton.
Methodology Working with the objective of identifying best practices in governance in India for the purpose
of further replication, the Governance Knowledge Centre (GKC) research team conducts
extensive research to locate initiatives that contribute towards the betterment of public service
delivery. SABRAS is transforming the livelihood conditions of the salt producing community in
select districts of Gujarat by committing to fair trade practices, linking salt producers with
markets and reducing their costs with solar technology. In this ma
criteria of an innovative, sustainable and replicable initiative.
Having established the SABRAS model as a best practice, the team then conducted thorough
secondary research using web sources to gather a detailed understanding of how the initiative
works and identify its strengths. The next step was to identify the key s
schedule interviews with them to get a deeper insight into the operation and impact of the
initiative.
KEY STAKEHOLDERS
Saline Area Vitalization Enterprise Ltd. (SAVE)
particularly to primary producers with limited assets and located along the coast of Gujarat.
Agariya Hit Rakshak Sangh,
partner of SABRAS and represents
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
development and training the salt workers to better manage the salt
production process and their profits.
SABRAS began with an initial capital of Rs. 100,000 out of which Rs. 74,000 was provided by
the salt workers and 26,000 by SAVE. SABRAS also received a Rs. 3,330,000
US based non profit organization First Light ventures. Currently the companys value is 5.5
lakhs. NABARD, local banks and the Government of Gujarat provide credit linkages for salt
production and purchase of solar pumps.
On an average in every salt production season salt workers produce 600 metric tonnes of salt.
Out of this total production 400 metric tonnes is used for repayment of credit
pumps) or as rent for the solar pumps. The remaining 200 metric tonnes is procured at the rate
of approximately Rs. 120 per metric ton. The salt is finally sold in the market at Rs. 7200 per
tive of identifying best practices in governance in India for the purpose
of further replication, the Governance Knowledge Centre (GKC) research team conducts
extensive research to locate initiatives that contribute towards the betterment of public service
delivery. SABRAS is transforming the livelihood conditions of the salt producing community in
select districts of Gujarat by committing to fair trade practices, linking salt producers with
markets and reducing their costs with solar technology. In this manner it fits the best practice
criteria of an innovative, sustainable and replicable initiative.
Having established the SABRAS model as a best practice, the team then conducted thorough
secondary research using web sources to gather a detailed understanding of how the initiative
works and identify its strengths. The next step was to identify the key s
schedule interviews with them to get a deeper insight into the operation and impact of the
Saline Area Vitalization Enterprise Ltd. (SAVE) provides enterprise development services
particularly to primary producers with limited assets and located along the coast of Gujarat.
a union of salt producers with 4,500 members is a scaling up
partner of SABRAS and represents the voice of the salt workers.
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
7
development and training the salt workers to better manage the salt
. 74,000 was provided by
Rs. 3,330,000 investment from a
US based non profit organization First Light ventures. Currently the companys value is 5.5
f Gujarat provide credit linkages for salt
On an average in every salt production season salt workers produce 600 metric tonnes of salt.
Out of this total production 400 metric tonnes is used for repayment of credit (taken for diesel
pumps) or as rent for the solar pumps. The remaining 200 metric tonnes is procured at the rate
of approximately Rs. 120 per metric ton. The salt is finally sold in the market at Rs. 7200 per
tive of identifying best practices in governance in India for the purpose
of further replication, the Governance Knowledge Centre (GKC) research team conducts
extensive research to locate initiatives that contribute towards the betterment of public service
delivery. SABRAS is transforming the livelihood conditions of the salt producing community in
select districts of Gujarat by committing to fair trade practices, linking salt producers with
nner it fits the best practice
Having established the SABRAS model as a best practice, the team then conducted thorough
secondary research using web sources to gather a detailed understanding of how the initiative
works and identify its strengths. The next step was to identify the key stakeholders and
schedule interviews with them to get a deeper insight into the operation and impact of the
provides enterprise development services
particularly to primary producers with limited assets and located along the coast of Gujarat.
a union of salt producers with 4,500 members is a scaling up
-
TRANSPARENCY AND
Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Government of India
Dasra, a social enterprise incubator,
assistance.
Central Salt & Marine Chemicals Research Institute,
provides strategic development and technical consulting advice for salt and by
Gujarat Livelihood Promotion Company
provides working capital to groups promoting
which has entered into a memorandum of understanding(MoU) with SABRAS in 2011 to work
together for improving the livelihoods of the salt workers.
National Bank for Agriculture and Rural Development (NABARD)
bank mandated to support economic activities in rural areas and promote integrated and
sustainable rural development under its Rural Innovation Fund program, supported SABRAS
in completing a pilot program for two solar powered water pump
First Light Ventures, a US based social venture fund, which invested Rs. 3,330,000 in SABRAS
in 2010.
Idiom Design and Consulting
strategy for SABRAS.
Individuals: Twenty eight salt workers
Lessons learned
Creating an empowered community
SABRAS is empowering the salt workers from just being producers to owning a company and
participating in the entire supply chain. The salt workers are no longer dependent on the
traders for selling the salt. Instead, SABRAS, the organisation, procures salt
prevailing market prices and also provides workers with solar pumps to increase efficiency.
SABRAS has helped in reducing the reliance of the salt workers on middlemen and also
increasing their income. It is helping them operate in a cost a
manner.
Establishing a brand through institutional partnerships
SABRAS successfully leverages the institutional partnerships to enhance its business model.
Strong partnerships with the government and private players are helpin
brand name, which in turn is strengthening its capacity to assist the salt workers. These
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
Dasra, a social enterprise incubator, supports SABRAS through on-going in
Central Salt & Marine Chemicals Research Institute, a part of the Government of India,
provides strategic development and technical consulting advice for salt and by
Gujarat Livelihood Promotion Company, a company set up by the Government of Gujarat,
provides working capital to groups promoting better livelihood options for the rural poor,
which has entered into a memorandum of understanding(MoU) with SABRAS in 2011 to work
together for improving the livelihoods of the salt workers.
National Bank for Agriculture and Rural Development (NABARD) an Indian development
bank mandated to support economic activities in rural areas and promote integrated and
sustainable rural development under its Rural Innovation Fund program, supported SABRAS
in completing a pilot program for two solar powered water pumps.
a US based social venture fund, which invested Rs. 3,330,000 in SABRAS
Idiom Design and Consulting, a design firm is providing assistance in developing a brand
Twenty eight salt workers to date have purchased equity in the company.
Creating an empowered community
SABRAS is empowering the salt workers from just being producers to owning a company and
participating in the entire supply chain. The salt workers are no longer dependent on the
traders for selling the salt. Instead, SABRAS, the organisation, procures salt
prevailing market prices and also provides workers with solar pumps to increase efficiency.
SABRAS has helped in reducing the reliance of the salt workers on middlemen and also
increasing their income. It is helping them operate in a cost and technologically effective
Establishing a brand through institutional partnerships
SABRAS successfully leverages the institutional partnerships to enhance its business model.
Strong partnerships with the government and private players are helping SABRAS build a
brand name, which in turn is strengthening its capacity to assist the salt workers. These
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
8
going in-kind technical
a part of the Government of India,
provides strategic development and technical consulting advice for salt and by-products.
, a company set up by the Government of Gujarat,
better livelihood options for the rural poor,
which has entered into a memorandum of understanding(MoU) with SABRAS in 2011 to work
Indian development
bank mandated to support economic activities in rural areas and promote integrated and
sustainable rural development under its Rural Innovation Fund program, supported SABRAS
a US based social venture fund, which invested Rs. 3,330,000 in SABRAS
, a design firm is providing assistance in developing a brand
to date have purchased equity in the company.
SABRAS is empowering the salt workers from just being producers to owning a company and
participating in the entire supply chain. The salt workers are no longer dependent on the
traders for selling the salt. Instead, SABRAS, the organisation, procures salt at higher than
prevailing market prices and also provides workers with solar pumps to increase efficiency.
SABRAS has helped in reducing the reliance of the salt workers on middlemen and also
nd technologically effective
SABRAS successfully leverages the institutional partnerships to enhance its business model.
g SABRAS build a
brand name, which in turn is strengthening its capacity to assist the salt workers. These
-
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Ministry of Personnel, Public Grievances and Pensions
Government of India
partnerships provide SABRAS with the necessary technical knowhow as well as financial
support, which otherwise is difficult for individual salt worke
Utilizing environment friendly technology
SABRAS is offering an innovative solar technology solution to replace the inefficient and costly
diesel powered pumps. This technology will not only reduce harmful carbon emissions but also
drastically reduce production costs in the long run and improve the efficiency of the salt
production process. In addition to higher revenues, the salt workers now have more time on
their hand as they are not required to constantly monitor the functioning of the solar pumps,
like they had to in the case of the diesel pumps.
Table 1: Cost Comparison Between Diesel and solar water pumps
Though the short term investment for a solar pump is high (approximately Rs
long run it is more cost effective. Currently SABRAS has installed two solar pumps. By the end
of 2011 it aims to set up 25 pumps with financial assistance from banks. SABRAS is working on
a low cost, solar concentrator technology that c
restricted to water pumps.
Developing a successful business model
SABRAS is successfully accomplishing its business objectives as well as creating a social impact
on the lives of the salt workers in Little Rann
improve livelihoods. To date, it has procured 22,000 tons of salt from over 39 salt workers and
expanded its marketing network from 4 to 13 commercial companies. Initially having faced
problems of quality, transportation and storage, the company could not meet its economies of
scale but currently has earned a profit of approximately Rs. 200,000 lakhs. Gradually the
processes involved are getting streamlined, as SABRAS plans to enter into more partnerships,
attract investors and develop innovative and efficient technology.
Pump
Type
Life of
Pump
Cost
Diesel 10 years 25,000
Solar 15 years 2,00,000
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Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
partnerships provide SABRAS with the necessary technical knowhow as well as financial
support, which otherwise is difficult for individual salt workers.
Utilizing environment friendly technology
SABRAS is offering an innovative solar technology solution to replace the inefficient and costly
diesel powered pumps. This technology will not only reduce harmful carbon emissions but also
production costs in the long run and improve the efficiency of the salt
production process. In addition to higher revenues, the salt workers now have more time on
their hand as they are not required to constantly monitor the functioning of the solar pumps,
like they had to in the case of the diesel pumps.
: Cost Comparison Between Diesel and solar water pumps
Though the short term investment for a solar pump is high (approximately Rs
long run it is more cost effective. Currently SABRAS has installed two solar pumps. By the end
of 2011 it aims to set up 25 pumps with financial assistance from banks. SABRAS is working on
a low cost, solar concentrator technology that can be used for other purposes and not just be
Developing a successful business model
SABRAS is successfully accomplishing its business objectives as well as creating a social impact
on the lives of the salt workers in Little Rann. It is combining commerce with a cause to
improve livelihoods. To date, it has procured 22,000 tons of salt from over 39 salt workers and
expanded its marketing network from 4 to 13 commercial companies. Initially having faced
rtation and storage, the company could not meet its economies of
scale but currently has earned a profit of approximately Rs. 200,000 lakhs. Gradually the
processes involved are getting streamlined, as SABRAS plans to enter into more partnerships,
investors and develop innovative and efficient technology.
Cost Annual
Maintenance
Annual
Fuel costs
25,000 10,000 60,000
2,00,000 15,000 -
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
9
partnerships provide SABRAS with the necessary technical knowhow as well as financial
SABRAS is offering an innovative solar technology solution to replace the inefficient and costly
diesel powered pumps. This technology will not only reduce harmful carbon emissions but also
production costs in the long run and improve the efficiency of the salt
production process. In addition to higher revenues, the salt workers now have more time on
their hand as they are not required to constantly monitor the functioning of the solar pumps,
Though the short term investment for a solar pump is high (approximately Rs. 300,000) in the
long run it is more cost effective. Currently SABRAS has installed two solar pumps. By the end
of 2011 it aims to set up 25 pumps with financial assistance from banks. SABRAS is working on
an be used for other purposes and not just be
SABRAS is successfully accomplishing its business objectives as well as creating a social impact
. It is combining commerce with a cause to
improve livelihoods. To date, it has procured 22,000 tons of salt from over 39 salt workers and
expanded its marketing network from 4 to 13 commercial companies. Initially having faced
rtation and storage, the company could not meet its economies of
scale but currently has earned a profit of approximately Rs. 200,000 lakhs. Gradually the
processes involved are getting streamlined, as SABRAS plans to enter into more partnerships,
Savings over
Life of pump
-
8,25,000
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Ministry of Personnel, Public Grievances and Pensions
Government of India
In the future, SABRAS is looking to expand its operations into the processing of salt. SABRAS is
in discussion with a leading retailer in India to undertake a new co
SABRAS brand of edible salt that would be sold directly to retailers. On the side lines, SABRAS
also hopes to develop a local brand of SABRAS salt for circulation in villages and aims to
generate additional revenue through the sale of salt by
profit margins are expected to increase, ensuring the long term sustainability of SABRAS.
Research was carried out by OneWorld Foundation India (OWFI), Governance Knowledge Centre (GKC) team.
Documentation was created by Research Associate,
For further information, please contact
References Ashoka Changemakers, http://www.changemakers.com/fr/node/105540/images
2011
Ashoka Changemakers, http://www.changemakers.com/g20media/socia
2011
Ashoka Changemakers,
capital-putting,-sme-investments
Bay of Bengal Programme,
19th 2011
Wind & Solar: Save the world energy,
July 19th 2011
Think Change India,
indian-dream/ July 19th 2011
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
In the future, SABRAS is looking to expand its operations into the processing of salt. SABRAS is
in discussion with a leading retailer in India to undertake a new co-branding effort for a
rand of edible salt that would be sold directly to retailers. On the side lines, SABRAS
also hopes to develop a local brand of SABRAS salt for circulation in villages and aims to
generate additional revenue through the sale of salt by-products like potash.
profit margins are expected to increase, ensuring the long term sustainability of SABRAS.
Research was carried out by OneWorld Foundation India (OWFI), Governance Knowledge Centre (GKC) team.
Documentation was created by Research Associate, Sapna Kedia
For further information, please contact Naimur Rehman, Director, OWFI, at [email protected]
http://www.changemakers.com/fr/node/105540/images
http://www.changemakers.com/g20media/socia
Ashoka Changemakers, http://www.changemakers.com/SME-Finance/entries/village
investments-hands, July 18th 2011
Bay of Bengal Programme, http://www.bobpigo.org/bbn/march_06/Page%2037
Wind & Solar: Save the world energy, http://thesolarpowered.com/cost
Think Change India, http://www.thinkchangeindia.org/2008/05/08/the
July 19th 2011
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Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
10
In the future, SABRAS is looking to expand its operations into the processing of salt. SABRAS is
branding effort for a
rand of edible salt that would be sold directly to retailers. On the side lines, SABRAS
also hopes to develop a local brand of SABRAS salt for circulation in villages and aims to
products like potash. In this manner
profit margins are expected to increase, ensuring the long term sustainability of SABRAS.
Research was carried out by OneWorld Foundation India (OWFI), Governance Knowledge Centre (GKC) team. Sapna Kedia
http://www.changemakers.com/fr/node/105540/images, July 18th
http://www.changemakers.com/g20media/socialfinance, July 18th
Finance/entries/village-
http://www.bobpigo.org/bbn/march_06/Page%2037-40.pdf, July
http://thesolarpowered.com/cost-of-solar-powered/,
http://www.thinkchangeindia.org/2008/05/08/the-makings-of-the-
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Appendix A Interview QuestionnaireBackground
1. SAVE conducted a study to understand the conditions of the salt workers. What
motivated SAVE to undertake the study? When was this study held?
2. SAVE formed SABRAS Pvt. Ltd to end the exploitation faced by salt workers, provide
them with access to instituti
a fair share in the final profits made.
a) What other objectives does SABRAS have?
b) What was the condition of the salt workers prior to SABRASs intervention? How
did they get access to financial as
c) How did SABRAS approach the salt workers and convince them about its purpose
of contributing towards the betterment of their livelihood?
Stakeholders
3. The key stakeholders in the project are: SAVE, Agariya Hit Rakshak Sangh, DASRA,
Central Salt & Marine Chemicals Research Institute, Gujarat livelihood Promotion
Company, NABARD, First Light Ventures, Idiom design and Consulting and Individual
salt workers who have purchased equity in the company.
a) Can you explain to us the role and res
stakeholders?
b) Are there any other stakeholders?
c) The above list has names of government agencies ( NABARD, Gujarat Livelihood
Promotion Company etc). How did SABRAS approach these agencies? Was there a
particular reason for it?
Program implementation
COMPANY ACTIVITIES
4. As we understand, SABRAS was established in 2007 and began with a pilot phase with
NABARDs assistance. What activities did the pilot phase entail? What was the duration
of the pilot?
5. SABRASs major activities include
a) Procurement
b) Transportation
c) Processing
d) Packaging of salt
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Researched and documented by
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Sabras: Empowering salt workers
Interview Questionnaire
SAVE conducted a study to understand the conditions of the salt workers. What
motivated SAVE to undertake the study? When was this study held?
SAVE formed SABRAS Pvt. Ltd to end the exploitation faced by salt workers, provide
them with access to institutional credit, markets and technology and ensure that they get
a fair share in the final profits made.
What other objectives does SABRAS have?
What was the condition of the salt workers prior to SABRASs intervention? How
did they get access to financial assistance and markets?
How did SABRAS approach the salt workers and convince them about its purpose
of contributing towards the betterment of their livelihood?
The key stakeholders in the project are: SAVE, Agariya Hit Rakshak Sangh, DASRA,
Central Salt & Marine Chemicals Research Institute, Gujarat livelihood Promotion
Company, NABARD, First Light Ventures, Idiom design and Consulting and Individual
salt workers who have purchased equity in the company.
Can you explain to us the role and responsibilities of each of one of the above
Are there any other stakeholders?
The above list has names of government agencies ( NABARD, Gujarat Livelihood
Promotion Company etc). How did SABRAS approach these agencies? Was there a
reason for it?
As we understand, SABRAS was established in 2007 and began with a pilot phase with
NABARDs assistance. What activities did the pilot phase entail? What was the duration
activities include-
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
11
SAVE conducted a study to understand the conditions of the salt workers. What
motivated SAVE to undertake the study? When was this study held?
SAVE formed SABRAS Pvt. Ltd to end the exploitation faced by salt workers, provide
onal credit, markets and technology and ensure that they get
What was the condition of the salt workers prior to SABRASs intervention? How
How did SABRAS approach the salt workers and convince them about its purpose
The key stakeholders in the project are: SAVE, Agariya Hit Rakshak Sangh, DASRA,
Central Salt & Marine Chemicals Research Institute, Gujarat livelihood Promotion
Company, NABARD, First Light Ventures, Idiom design and Consulting and Individual
ponsibilities of each of one of the above
The above list has names of government agencies ( NABARD, Gujarat Livelihood
Promotion Company etc). How did SABRAS approach these agencies? Was there a
As we understand, SABRAS was established in 2007 and began with a pilot phase with
NABARDs assistance. What activities did the pilot phase entail? What was the duration
-
TRANSPARENCY AND
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Ministry of Personnel, Public Grievances and Pensions
Government of India
e) Marketing and approaching appropriate distribution channels: wholesale, retail?
f) Knowledge services
CAN YOU EXPLAIN HOW E
6. SABRAS has also set up mobile shelters for families and multipurpose community
shelters. Can you explain the purpose of these and who is responsible for their
maintenance?
7. SABRAS has also established a Community Resource Centre (CRC
a) What is the purpose of the CRC?
b) To what extent is this CRC being utilized?
c) Is SABRAS planning to establish such CRCs in other villages too.
8. SABRAS provides training to salt workers to establish micro enterprises. What does the
training entail? Have any micro enterprises been established?
9. SABRAS hopes to replace diesel pumps with solar pumps for the extraction of salt.
a) Can you help us understand the process o
solar pumps?
b) How are solar pumps an improvement over diesel pumps?
c) SABRAS began with providing 2 solar pumps in 2010. Which villages were these
pumps installed in.
d) In 2011, SABRAS aims to set up about 100 solar pumps
have been installed so far?
FINANCIAL OPERATIONS
10. What was the set-up cost of the company? SABRAS received $ 75,000 from First Light
Ventures. What end were these funds utilized for?
11. We understand that salt workers hold 74% equi
company. As far as ownership is concerned SAVE owns 85% of the company and salt
workers own 15%.
a) What is the difference between equity and ownership?
b) How is ownership allocated between various salt workers?
12. Installing solar pumps is extremely expensive. The cost of installing one pump is
approximately 2 lakhs. For this purpose SABRAS proposed the lease against own
program where it acts as a guarantor for the salt workers.
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
e) Marketing and approaching appropriate distribution channels: wholesale, retail?
f) Knowledge services
AN YOU EXPLAIN HOW EACH OF THESE ACTIVITIES IS CONDUCTED, IN DETAIL
SABRAS has also set up mobile shelters for families and multipurpose community
shelters. Can you explain the purpose of these and who is responsible for their
SABRAS has also established a Community Resource Centre (CRC) in Jogad.
What is the purpose of the CRC?
To what extent is this CRC being utilized?
Is SABRAS planning to establish such CRCs in other villages too.
training to salt workers to establish micro enterprises. What does the
training entail? Have any micro enterprises been established?
SABRAS hopes to replace diesel pumps with solar pumps for the extraction of salt.
Can you help us understand the process of salt extraction using both diesel and
How are solar pumps an improvement over diesel pumps?
SABRAS began with providing 2 solar pumps in 2010. Which villages were these
pumps installed in.
In 2011, SABRAS aims to set up about 100 solar pumps. How many solar pumps
have been installed so far?
up cost of the company? SABRAS received $ 75,000 from First Light
Ventures. What end were these funds utilized for?
We understand that salt workers hold 74% equity and SAVE owns 26% equity in the
company. As far as ownership is concerned SAVE owns 85% of the company and salt
What is the difference between equity and ownership?
How is ownership allocated between various salt workers?
lar pumps is extremely expensive. The cost of installing one pump is
approximately 2 lakhs. For this purpose SABRAS proposed the lease against own
program where it acts as a guarantor for the salt workers.
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
12
e) Marketing and approaching appropriate distribution channels: wholesale, retail?
IN DETAIL?
SABRAS has also set up mobile shelters for families and multipurpose community
shelters. Can you explain the purpose of these and who is responsible for their
) in Jogad.
Is SABRAS planning to establish such CRCs in other villages too.
training to salt workers to establish micro enterprises. What does the
SABRAS hopes to replace diesel pumps with solar pumps for the extraction of salt.
f salt extraction using both diesel and
SABRAS began with providing 2 solar pumps in 2010. Which villages were these
. How many solar pumps
up cost of the company? SABRAS received $ 75,000 from First Light
ty and SAVE owns 26% equity in the
company. As far as ownership is concerned SAVE owns 85% of the company and salt
lar pumps is extremely expensive. The cost of installing one pump is
approximately 2 lakhs. For this purpose SABRAS proposed the lease against own
-
TRANSPARENCY AND
Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Government of India
a) How does the lease against own program function?
b) Which banks does SABRAS approach for loans?
c) SABRAS is providing assistance to salt workers in getting loans for solar pumps.
Does SABRAS assist salt workers in getting institutional credit for any other
purpose?
Impact
ACHIEVEMENTS
13. What are the major achievements of SABRAS in the past three years? How has it
impacted
a) The lives of salt workers
b) SABRAS as a company
CHALLENGES
14. What are the major challenges faced by SABRAS? How were they overcome?
a) There is a need to increase the customer base of SABRAS in
competition in the salt market. How does SABRAS plan to do so?
b) The cost of solar pumps in very high. Besides the lease to own program, SABRAS is
planning to look for alternative means (solar concentrating technological) of
financing these pumps. What are the other alternative solutions and how will they
be implemented?
Enhancements
15. What are the major enhancements planned for the future?
a) SABRAS is hoping to establish it own processing unit. Why is this necessary? How
will SABRAS go about it?
b) SABRAS plans to introduce salt by
branding SABRAS salt. How will this be done?
Data
16. Can you provide us with the following data:
a) Number of salt workers reached so far
b) Number of solar pumps installed
c) Number of villages covered
d) Contact details of other stakeholders
RANSPARENCY AND ACCOUNTABILITY
Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances
Ministry of Personnel, Public Grievances and Pensions
Researched and documented by
OneWorld Foundation India
Sabras: Empowering salt workers
How does the lease against own program function?
Which banks does SABRAS approach for loans?
SABRAS is providing assistance to salt workers in getting loans for solar pumps.
Does SABRAS assist salt workers in getting institutional credit for any other
achievements of SABRAS in the past three years? How has it
The lives of salt workers
SABRAS as a company
What are the major challenges faced by SABRAS? How were they overcome?
There is a need to increase the customer base of SABRAS in
competition in the salt market. How does SABRAS plan to do so?
The cost of solar pumps in very high. Besides the lease to own program, SABRAS is
planning to look for alternative means (solar concentrating technological) of
these pumps. What are the other alternative solutions and how will they
What are the major enhancements planned for the future?
SABRAS is hoping to establish it own processing unit. Why is this necessary? How
about it?
SABRAS plans to introduce salt by-products and partner with retailers for co
branding SABRAS salt. How will this be done?
Can you provide us with the following data:
Number of salt workers reached so far
Number of solar pumps installed
ber of villages covered
Contact details of other stakeholders
CCOUNTABILITY
Case Study Livelihoods Security
Sabras: Empowering salt workers in Gujarat
July 2011
13
SABRAS is providing assistance to salt workers in getting loans for solar pumps.
Does SABRAS assist salt workers in getting institutional credit for any other
achievements of SABRAS in the past three years? How has it
What are the major challenges faced by SABRAS? How were they overcome?
There is a need to increase the customer base of SABRAS in order to face the stiff
competition in the salt market. How does SABRAS plan to do so?
The cost of solar pumps in very high. Besides the lease to own program, SABRAS is
planning to look for alternative means (solar concentrating technological) of
these pumps. What are the other alternative solutions and how will they
SABRAS is hoping to establish it own processing unit. Why is this necessary? How
products and partner with retailers for co