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Shit Business is Serious Business...



                             To you it may be "Shit", To us it is "Money"   1
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
Industry Choice / Opportunity Assessment




                To you it may be "Shit", To us it is "Money"   3
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
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
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
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
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
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
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
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

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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