This is one of my Competition entry prepared based on a case study that was given to us. The case study basically talked about the opportunities that lie in Rural India. We stood 2nd in the competition.
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Case study solution chakravyuha'12
1. Shit Business is Serious Business...
To you it may be "Shit", To us it is "Money" 1
2. Chakravyuha 2012
As said in the latest speech by
Jairam Ramesh, our Rural
Development minister, there are
more cell phones in Rural India then
Industry Choice / Opportunity assessment
toilets . Construction of quality toilet
requires Rs 8000 each but under the
Market Implementation Method
government’s TSC norms only Rs
3000 is provided, he said, describing
Sources of Revenue
it as pittance.
Final outcome
Hence we have chosen a service,
that will improve the sanitation
facilities in Rural India and at the
same time is a great business
opportunity with several sources of
revenue, Mobile Toilet Center
To you it may be "Shit", To us it is "Money" 2
3. Industry Choice / Opportunity Assessment
To you it may be "Shit", To us it is "Money" 3
4. Industry Choice / Opportunity Assessment
1) Huge demand for hygienic, safe toilets 5) Possibility of government aid and help in
thereby creating a direct market in terms terms of setting up the infrastructure and
creating a mechanism for Personal
of the users. Sanitation certifications for farmers
2) Active market for biomass energy, thereby enabling them to sell their
produce for a premium.
organic products through use of human
sewage thereby creating a steady and 6) Incentive for farmers who benefit in 2
ways:-
alternative source of revenue.
a) Safe and hygienic sanitation
3) Huge possibilities for linkups with big facilities- Increased productivity, safety
retail chains who can buy hygienic farm from sanitation ailments of diarrhoea and
products from farmers and sell them at typhoid. Improved sanitation facilities are
estimated to result in an average
the premium to hygiene and food safety reduction in cases of diarrhea of more
conscious consumers. than 33%.
4) The sanitation landscape in India is still b) Premium for their farm produce based
littered with 3 million unsanitary bucket on government authorized sanitation
certifications A certificate will be given to
latrines, which require scavengers to all the farmers using our sanitation
conduct house-to-house excreta facilities. Farmers can capitalize on this
collection certificate while selling their crop yield to
the retailers.
To you it may be "Shit", To us it is "Money" 4
5. Industry Choice / Opportunity Assessment
7) No adequate toilet facilities for as 11) Recycling industries will be
high as 65% of India’s population- potential customers for dry
Jharkhand tops the list with 77% waste.
8) 30-40% of the total municipal 12) Committee of planning
waste is biodegradable, which can commission proposed an
be utilized to generate biogas and allocation of Rs 44,000 crore on
manure. sanitation over the 11th ,5 year
plan.
9) India accounts for 60% of the open 13) In Karnataka State, as an
defecation in the world, this material example, 5.40 million rural
can be used as an organic fertilizer households do not have toilets.
for several organic food producing 14) 74% of the rural population still
companies. defecates in the open.
10) As per 2011 data, 69.3% of the 15
crore rural house holds do not have
proper sanitation facilities.
To you it may be "Shit", To us it is "Money" 5
6. Market Implementation Method
1. Identifying a Village. Mobile Toilet Van
2. Mobilizing the Village Community and
Panchayat Leaders.
3. Setting up a Mobile toilet van.
4. Each mobile toilet van will cover
one/two villages depending on
nearness/feasibility from 6 AM to 11 AM
every morning, 7 days of week , 365 days
a year.
5. The vans will have defecation
collection instrument installed in them.
To you it may be "Shit", To us it is "Money" 6
7. Market Implementation Method
6. The villagers will also be given a 4
container dustbin, where they will
segregate waste in 4 parts like
• Recyclable e.g. glass, paper, plastic
• Organic e.g. food leftovers, garden
waste
• Toxic e.g. tin, batteries
• Reusable e.g. plastic bottles, polythene
bags
This method will help in segregation of
waste at the source.
7. The Mobile vans will have an attached
garbage disposal equipment, where
the villagers will empty their dustbins .
To you it may be "Shit", To us it is "Money" 7
8. Sources Of Revenue
1. Pay-As-You-Shit (PAYS) model. The 5. Human excreta can be used to
farmers will be charged a small payment generate bio-gas in Bio-gas plants.
for using the sanitary services. 6. Farmers using our sanitation facilities
2. Advertisement of the local businesses will be given certification, this
on the Mobile Toilet Van. Moreover HUL certification can be leveraged by
and P&G have come up with a range of farmers while selling their crop yield,
rural products, they are also target saying that they live in a healthy
customers for advertisement. surroundings., and hence produce
3. The solid dry waste recovered from the better quality crop. They will be able to
farmers dustbins like glass, paper, charge better from the retail chains like
plastic etc can be sold to the recycling reliance fresh. We as a company can
industries. charge a premium on it.
4. Urine collected can be used to make
organic fertilizers, these organic
fertilizers can be sold to people who
produce organic goods.
To you it may be "Shit", To us it is "Money" 8
9. Expected Cash flows per Toilet
1. Average Daily revenue of approx Rs
1000 per toilet estimating around
200 persons using toilet daily and
charging each of them Rs 5 for the
service.
2. Average monthly revenue approx Rs
30,000 per toilet.
3. Average Monthly Expenditure Rs
12,000/toilet.
4. Free Cash Flow/Profit per month Rs
18,000/toilet .
5. Free Cash Flow/profit in 12 months
Rs 2.16 lacks/toilet.
*Note: We have only used the earning’s though PAYS model
in this example.
To you it may be "Shit", To us it is "Money" 9
10. Final Outcome
1. Creating a community of certified 5. Employment Generation, the people for
sanitation pro farmers, better sanitation will running the organic fertilizer producing facility
lead to better health conditions and hence from defecate material, will be employed from
improve the quality of the crop yield. the village itself.
2. Farmers will be able to charge more for
their crops produce, from retail chains like 6. Awareness Building, we will encourage the
Big Bazaar. As the certification will hold them villagers to keep the surroundings clean and
above the rest of the farmers. spread the message that cleanliness of the city
is for collective good.
3. Preventing solid, liquid waste being thrown
in rivers, which in turn improves the quality
7. Safe sanitation will lead to Economic
and supply of water.
development, improve health conditions,
4. Development of sustainable sources of promote social development, and will also help
revenue for the company the environment.
*Sources of revenue are discussed in detail on slide
8.
To you it may be "Shit", To us it is "Money" 10
11. References Team Members
• http://www.wsscc.org/
• http://www.susana.org/ Tarun Gupta
• http://water.org/ PGDM
M043
• http://wateraid.org/
• http://indiatoday.intoday.in
• DMT Mobile Toilet Ltd. , Nigeria
Rahul Gupta
PGDM
M109
To you it may be "Shit", To us it is "Money" 11