Executive Summary WaterWise is a partnership enterprise that will install Rainwater Harvesting Systems (RWH) in different resident and

commercial structures for the customers and provide maintenance services of the installed systems. Rainwater Harvesting is the collection, conveyance and storage of rainwater for human use from rooftops and other surfaces by engineered techni ues. WaterWise will cater to two different mar!ets" #ha!a city, the capital of $angladesh and the arsenic%affected rural areas. &he head%office of WaterWise will be situated in the center of the business hub in #ha!a, while the 'onal offices will be in the (orth, South and South%)ast of $angladesh. *ncreasing population, rampant pollution and a fast% depleting ground water table has render end +,-,.// resident households in #ha!a 0ity with an urgent necessity of an alternate water source. &he picture in rural $angladesh is even more ominous, with an estimated 1. million people and one%third of privately owned shallow tube wells e2posed to dangerous levels of arsenic. WaterWise will use the opportunities inherent in these very limitations as the RWH systems are ideal for this prevailing scenario. RWH is an affordable, environmentally sound option that is suitable for scattered settlements and provides high% uality water. RWH enhances control over a precious resource and reduces time and labor e2pended to procure water. &he main ob3ective of WaterWise is to employ renewable resources in order to provide a sustainable and cost%effective solution to the chronic water crisis which shows no sign of easing under the e2isting situation. $y being the pioneers of this new industry and providing unprecedented customer service, WaterWise will be utili'ing its mar!et monopoly in the initial years. &he firm will raise barriers to entry into the industry by approaching $S&* and WH4 for certification of its product lines. The Marketing Strategy &he mar!eting strategy of WaterWise will be to educate the customer about the benefits of rainwater and detriments of sole dependence on e2isting sources. &his will be achieved by creating top%of%the%mind awareness through implementation of an integrated mar!eting communication that ta!es into account the distinct demographic and psychographic features of our target mar!et. With growing awareness and a deepening water crisis in #ha!a 0ity, the customer base of WaterWise is e2pected to grow at an increasing rate after the initial year of operation. &he operational strategy of WaterWise will be to utili'e indigenous materials for the RWH systems and employ a team of technical e2perts e uipped with storage%volume determination techni ues adapted to the uni ue climate of $angladesh.

WaterWise will re uire a capital investment of $#& +- million. $#& 5 million would be provided as capital and $#& 6 million will be borrowed from ban! as a .%year, +.7 loan. &he (89 of the pro3ect is : .+/,-;6 and *RR is 557. 8rofitability ratios are as follows" Ratio Net Profit Margin Return on Equity Return on !!et! 2010 %/./17 %+/.//7 %..<17 2011 +-...7 65.<;7 /,.167 2012 //.++7 5/.+/7 6,.+/7 2013 1+.<.7 .,.,;7 .+..-7 2014 1;.,;7 .1./.7 6;.5-7

Water crisis is a global phenomenon. &herefore, the business model of WaterWise can be successfully replicated in any part of the world. $usiness *dea 1"0 Rain#ater $arve!ting% WaterWise provides a simple and innovative solution to a contemporary problem by e2ploiting an age%old phenomenon called Rainwater Harvesting (RWH). *t is the collection, conveyance and storage of rainwater for human use, mainly from rooftops and other surfaces by engineered techni ues. *t is an important water source in areas with significant rainfall but without good uality fresh surface water or groundwater. WaterWise will install RWH systems in different structures for the customers and provide maintenance services of the installed systems. The Nee& for Rain#ater $arve!ting% *ncreasing population, combined with industriali'ation, urbani'ation, agricultural intensification and water%intensive lifestyles have e2erted pressure on e2isting sources of water. #ha!a, the densely populated capital, is particularly vulnerable. &he #ha!a Water and Sewerage =uthority (#W=S=) can only supply +,.-- million liters a day (mld) against a demand of /,/.- mld. &he present sources of water supply to #ha!a city are no longer sustainable because of e2treme dependence on ground water (,17 of #ha!a>s total demand). Study reveals that #ha!a>s groundwater table has gone down by 1.m in the past ++ years leaving the pumps being able to abstract water at only two%third of their capacity. &he rest +<7 of the water supply is derived from surface water, which is also highly polluted. &he surface water treatment plants of #W=S= cannot function properly as the pollution level in the rivers surrounding is so high that the water is beyond treatment. While the water supply in #ha!a city is affected both in terms of uantity and uality, the main problem afflicting rural areas is the uality of the water. =t present, the success achieved in hand

tube well based rural water supply is on the verge of collapse due to presence of arsenic in e2cess of acceptable levels in the shallow a uifers. =rsenic contamination has been found in 5+ districts out of 56. *t has been estimated that /<7 of shallow tube wells in $angladesh were contaminated with high levels of arsenic (above .- ?g@A).

'rom Pro()em to *++ortunity% WaterWise will use the opportunities inherent in these very limitations to its advantage by employing RWH as a method of conserving and improving water supply. &he capital city averages nearly +,<-- to /,/-- mm rainfall per year while the nationwide average is around /,/-- to /,--. Bonsoon usually lasts from =pril to 4ctober. WaterWise intends to ease the pressure on surface water and groundwater usage in #ha!a city by promoting RWH in both domestic and commercial structures. With the current amount of rainfall, water e uivalent to +.7 of total demand can be captured, enough to meet the demand all year round. *n rural areas, WaterWise will focus on the efficient utili'ation of rainwater for potable (drin!ing and coo!ing) purposes. With an average rainfall and using +,+--%gallon storage tan!s, enough water could be collected in +/ hours to serve a family of 5 for 6. days. &hrough its operations, WaterWise will be ta!ing a meaningful step towards significantly reducing the proportion of population without access to clean drin!ing water and achieve a very important Billennium #evelopment Coal, to which $angladesh is committed. ,oa)!% &he broad ob3ectives of the business are" (+) &o provide efficient rainwater harvesting solutions to households that complement the e2isting water supply (/) &o provide round the year potable water supply for structures with poor or no water connection (1) &o reduce pressure on groundwater and use renewable rainwater in energy%efficient and cost%effective way. 2"0 Market Potentia) WaterWise will cater to two different mar!ets" #ha!a city and the arsenic%affected rural areas. -haka .ity% 0urrently, the demand D supply gap in the capital is <.- mld, which is pro3ected to increase by +-- mld each year. &he population of #ha!a and surrounding areas is presently more than +- million and by /-+. it is pro3ected to be about more than +. million. &his increase in population will lead to an increase of 6/7 in demand. #W=S=>s reliance on the conventional sources of water will not be able to meet this demand. =t present <.7 of #ha!a>s population is

under #W=S= coverage. #W=S= is supplying odiferous and contaminated water to 6-7 of the city. Water scarcity becomes a severe problem during summers when, e2cept for some affluent areas, ;-7 of the cityEs residents face water shortages, 5-7 of whom face acute crisis. &a!ing these facts and the #W=S= domestic customer base into account, there are about +,-,.// resident households (=ppendi2%/)) in the capital with an urgent necessity of an alternate water source. &he households in these areas have responded favorably to the concept of RWH (=ppendi2%1=). &he 5--- commercial and +55- industrial units in and around #ha!a are also potential mar!ets (=ppendi2%/)). RWH setups help meet demand in pea! times and reduce consumer>s utility bills. =lso, the water is free and the initial costs are offset by negligible recurrent costs within /%1 years. $ecause RWH is a decentrali'ed, environmentally sound solution, it can avoid many environmental problems often caused by the large%scale pro3ects of #W=S= using centrali'ed approaches. RWH will also be a cost%effective option for the +.. million people who access #W=S= water illegally at +<-7 higher costs and those who use #W=S=>s vehicle delivered water supplies. Rura) rea!% =s a result of accelerated installation of shallow hand%pump tube%wells over the past decades as means of cheaper and convenient FsafeF water supply, most rural people have become heavily dependent on groundwater. =n estimated .< million people dran! water e2ceeding the WH4>s recommended arsenic level last year. Surveys have also shown that women, who are the principal users, are increasingly becoming aware of the threats posed by arsenic. Women living in the problem areas have to wal! long distances to access water and attach great importance to Gsafety>, Gconvenience>, and Gthe ability to control one>s own water>. 4f the +- million tube%wells throughout rural $angladesh, more than three% uarters are privately owned. &hese findings reflect a desire for households to have their own source of water. Enter /ater/i!e0% &he RWH systems promoted by WaterWise are ideal for this prevailing scenario. &he system is independent and suitable for scattered settlements. &he operation of the system is easy and re uires little maintenance. RWH systems are within the purchasing power of people living in rural communities. =verage life e2pectancy of a RWH system is +-%+. years. =bout .-7 of rural households have roof constructed from technically appropriate materials. *n terms of physical% chemical parameters, collected rainwater tends to e2hibit uality levels that are generally comparable to the WH4 guideline values for drin!ing water. 4ther advantages of rainwater include neutral pH, less corrosive nature and superior taste and cleansing properties. &he water can also be preserved for 6 % . months (in the dry

season) without bacterial contamination so that the owner can get safe drin!ing water all%year round. 3"0 .om+etition -/ S % 0urrently no competition e2ists in terms of RWH in $angladesh. &he #ha!a W=S= is the only agency responsible for delivering water in #ha!a city. $ut the authority is plagued with problems, such as corruption, poor distribution system, irregular supply, low production, poor uality of water, and high system loss. =lso, due to imbalanced water abstraction, #W=S= is being forced to go deeper into the a uifers, which increases the cost of abstraction multifold. Boreover, increasing costs of fuel that run the generators and aging pipelines would only add to the cost, which will, in turn, increase the tariff. Hurthermore, the cost of availing a new connection from #W=S= is appro2imately &!. /.,--- (for a / inch diameter pipe) which is even greater than the cost of establishing a small RWH setup. 8otential 0ompetition" &he business idea, in itself, has a low barrier to entry. Reali'ing the potential threat of other investors, Water Wise plans to focus on value addition in terms of improved service and reliable technology. &he following gives waterWise the advantage over potential competitors" Hirst%mover advantage of owning the concept of RWH in $angladesh and being synonymous to the category itself. 8rovide unprecedented customer service through uarterly uality chec!%up of RWH setup, water sample e2amination and capacity e2tension by the maintenance team. Ini ue storage determination technology, e2periential learning curve and top%notch industry e2perts and technicians would ensure technical advantage over competitors.

=nother threat is that of #W=S= itself, becoming a supplier of rainwater. However, the long term sustainability of such a pro3ect can be doubted due to bureaucratic hassles prevalent in the government body. Boreover, if the authority itself starts this venture, it will result in more publicity for the business idea. *n such a case, better efficiency and sustainability of RWH can be ensured through private business initiatives rather than public sector enterprises. &he (C4s also wor! to promote rainwater harvesting. However, it is done in a much smaller scale and only in a few of the rural areas. *nstead of posing threat of competition, these initiatives

would pave way for easier entry in the mar!et where the concept of rainwater harvesting has already been introduced. 4"0 Marketing P)an *(1ective &he ob3ective of the mar!eting plan is to" Remove psychological barriers to using rainwater (if any) )ducate the customer about the benefits of rainwater and detriments of sole dependence on e2isting sources (#W=S=, tube%well, ponds etc.) 0reate a top%of%mind positioning of the brand in consumer>s mind )stablish the necessity of proper technology and regular maintenance to ensure safety

Segmentation &he target mar!et will be segmented along these broad spectrums" ,eogra+hic Segmentation% Rural and Urban Irban consumers have more disposable income and are more responsive to promotion. =lso, the crisis is more apparent in #ha!a. However, they are constrained by space and promotion is e2pensive. Rural customers are highly price sensitive, but the mar!et si'e is several times larger. &here are more open spaces and cost of labor and locally ac uired materials are low. 2o)umetric Segmentation% Domestic, Commercial and Industrial #omestic users need RWH as a sustainable alternative source of potable water. 0ommercial offices can opt for RWH for sustainability, and as means to achieve socially responsible image. *ndustries could utili'e their greater catchment surfaces for both potable and non%potable usage for direct use into production and for other purposes. Pro&uct an& Pricing Strategy &he RWH setups will be customi'ed according to roof%si'e, customer affordability, average rainfall in the area and the use of water. Hor pricing, WaterWise uses cost%plus pricing strategy, where there is mar!%up over the cost to determine the final price. $elow is a summary of the products, the details of which is provided at =ppendi2%/0. &he product names are in $engali in order to increase relevance for the target mar!et. &he associated numbers represent the default capacity of each product (unless customi'ed).

Pro&uct Supeyo Jol (irod 4rnob &esta 8ipasha 5u&get

Price 3 ++roximate)y4 .--+---/----+/----6.-.---

Segment! Irban Household Irban Household 0ommercial setup *ndustrial setup Rural Household Rural Household

.a+acity to Provi&e Hamily of 1 Hamily of . Ip to +.- people Ip to +.-- people Hamily of 1 Hamily of .

Bar!eting budget is $#& / million (IS# /;,6+/) for + year and $#& + million (IS# +6,<-5) in every succeeding year. 5.7 of the budget will be spent for $elow%the%Aine ($&A) promotional activities and the rest for =bove%the%Aine (=&A) activities. E&ucating the .u!tomer #uring the first 1 months, WaterWise will install sample RWH setups in both rural and urban areas. *n the rural areas, WaterWise will setup RWH systems in +- schools and . mos ues (in +. different villages). &here is an acute need of potable and safe water in schools, and schoolchildren will spread the word%of%mouth of the technology and carry the idea to their homes. Setups at mos ues will attract the attention of regular large congregations and *mams can help increase the acceptance of RWH. =s a promotion, there will be a .-7 discount for the first /- RWH products (Supeyo) in #ha!a. WaterWise will also circulate samples of #W=S= water, along with leaflets containing the uality analysis of the sample and the possibilities of rainwater harvesting. &his will reinforce the e2isting negative perception of the uality of #W=S= water. 8R 4fficers of WaterWise will also engage in personal selling by approaching commercial and industrial entities with the offers designed for such establishments and the cost%benefit analysis (8aybac! period calculated to be less than 6 years, =ppendi2%6) 5ringing in Externa) Stakeho)&er! WaterWise will hold seminars D wor!shops and bring representatives of the government, (C4, donor agency and real estate developers together. &he purpose would be to educate these sta!eholders of the impact and benefit of RWH, and how a combined effort can bring an end to an imminent crisis. 6"0 Re!ource Requirement! &he initial start%up capital for WaterWise will be $#& ++ million (IS# +5+,<.5). 5-7 of the investment would be provided by the entrepreneurs (e uity) and the rest 6-7 will be

obtained through a SB) loan from 8rime $an! Aimited at +.7 interest rate, which will be secured using postdated che ues. &he loan will be paid bac! in . years. 7"0 8m+)ementation P)an *+erationa) 9ayout Start of 4peration" Barch /-+/ Head 4ffice" Boti3heel (0entral 0ommercial =rea), #ha!a (Warehouse in &i!atoli) Konal 4ffices" $ogra, Lhulna, (oa!hali (=ddressing the north%west, south%west and south%east regions) greement! Promotiona) 8n!ta))ment!% WaterWise will contact potential customers for sample RWH setups as promotion. #ifferent organi'ation@institutions will be chosen for the promotion to represents different target customers. Su++)ier!% WaterWise will ma!e contracts with suppliers of plastic tan!s, bric!s, cements, iron bars, plastic@pvc pipes and other fittings. Konal offices would ac uire the products locally in order to achieve cost advantages. Sample filtration systems are also being evaluated, both from local producers and importers.

5u!ine!! Proce!!% +. 0ollecting 4rders" 8R officers from the four offices would meet potential clients in their respective areas and e2plain the benefits of RWH (and refer to the initial sample setups) to collect orders. Ising WaterWise Bass 0urve =nalysis, storage volume and statistical dependability of the setup would be determined. /. $ringing in Raw Baterials and 0onstruction" $ased on the analysis, raw materials would be ac uired from suppliers. Stoc! management would be based on J*& (3ust in time) principles. 1. 0onstruction" Basons and helpers will be sent under the supervision of an engineer for the construction. (umber and e2pertise of the wor!ers would depend on the comple2ity of the setup. 6. Baintenance and =fter%Sales Service" Baintenance teams will visit the RWH systems at regular intervals and chec! for possible contamination, lea!age etc. &elephone hotlines and websites would respond to customer ueries and provide suggestions.

:"0 Ri!k !!e!!ment Techno)ogica) Ri!k% Simple and matured technology ensures minimal threat. Market Ri!k% 8resent levels of demand%supply gap poses no threat, but future increase in supply from competitors may lower prices. Regu)atory Ri!k% as WaterWise will operate as a complementary service to government services, it will receive significant help from the government. Economic Ri!k% economic factors may increase the cost of goods sold. Environmenta) Ri!k% the business may be affected by a dry period of time and lose potential customers. Porter;! 6 'orce! Mo&e) Threat of Su(!titute ,oo&!% 8roduct differentiation and cost advantages over e2isting substitutes ma!e the investment attractive. Threat of Entry of Ne# .om+etitor!% Aow barriers to entry and capital re uirements pose a great threat. However, this will be offset by learning curve e2periences and the brand e uity derived from the first mover advantage. 8nten!ity of .om+etitive Riva)ry% the low number and diversity of competitors together with the high industry growth rate reduces the intensity of competition. 5argaining Po#er of .u!tomer!% 8rice insensitive customers with the unavailability of substitutes lose their bargaining power. 5argaining Po#er of Su++)ier!% as most suppliers would be larger in si'e, will have the upper hand, however, the presence of many suppliers can help WaterWise>s cause. <"0 .ontingency = Exit P)an! =s investment re uirements are low and the materials and e uipment can be easily converted to cash, it will be very easy to recoup the amount invested, other than some sun! costs. *f the business continues to earn losses, as a contingency, WaterWise can diversify into producing bottled drin!ing water. Since it has the e2pertise to collect and treat rainwater, it can start its own production using large scale RWH systems. *t can also wor! with the government to artificially recharge the depleting groundwater of #ha!a city. &he e2it plan for WaterWise would be to sell to the business model and developed e2pertise to (C4s or donor agencies wor!ing in the development sector, who are interested in rainwater harvesting.

++en&ix>1 3R/$ -e!ign!4 Rain#ater $arve!ting Sy!tem! Surface Tanks Hig%+ is a typical rainwater harvesting systems for a single household. Water collected in the roof is stored in the tan! below, which is later retrieved using a tap from the bottom of the tan!. &his method uses gravity to collect and distribute rainwater and is highly cost% effective.

Hig%+" Surface tan!s (diagram)

Sub-Surface Tanks *n case of space constraints and aesthetic issues, the storage tan! can be made sub surface. &his would re uire using hand%pumps or electric pumps to e2tract the water. Sub%surface tan!s have the advantage of having larger storage capacity to store the water.

Higure /" Sub%surface &an! #iagram

Higure 1" Sub%surface tan!s (actual)

++en&ix>15 3Ma1or Equi+ment! in R/$ Sy!tem4 'ir!t>f)u!h -iverter! Hirst%flush diverters avoid the foul water that comes during the first .%+- minutes of rain. &his water contains accumulated dirt from the rooftop, as well as suspended particles in the air. &he method is very simple. = small tan! (proportionate to the si'e of the roof) collects the first%flush, as soon as it fills up, the rubber ball seals the pipe and diverts further flow directly to the tan!.

,utter! an& S+)a!h ,uar& 9%shaped gutters at the end of the roof collect the rainfall and channel it to the pipes. = splash guard on top of the gutters would stop water from spilling over the gutter and waste in case of heavy rainfall.

Higure 6" Cutters and Splash Cuard

Higure ." Water Hilters (Iltra%violet)

/ater 'i)ter! Hor drin!ing purposes, the water should be purified as an e2tra precaution. &he users can boil the rainwater before drin!ing, or use filters to drin! the water directly from the source. 4ur products come with three varieties of filters, sand, charcoal and ultra%violet, depending on cost and usage.

++en&ix>1. 3*+erationa) rea! an& *ffice 9ocation4

Higure <" 4perational =reas in $angladesh

Higure 5" 0risis =reas in #ha!a and 4ffice Aocation

Reference =HB)#, =. (+;;1), 8rospects for rainwater 0atchment in $angladesh and *ts Itili'ation, 8roc.*nt. 0onf. nn Rainwater 0atchment (airobi, +%5 =ugust /--< System,

=rsenic =ffected =reas, B.Sc. (0ivil and )nvironmental) thesis submitted to the #epartment of 0ivil )ngineering of $angladesh Iniversity of )ngineering =nd &echnology ($I)&), September /--5 $=(CA=#)SH $IR)=I 4H S&=&*S&*0S (/--<), Statistical Mear $oo! of $angladesh, Binistry of 8lanning, Covt. of 8eople>s Republic of $angladesh 0H4W#HIRM , (.*., =H B)#, B.H. and 0H4I#HIRM, J.R. (/--1), Ise of Rain Water for Water Supply in the 0oastal =reas of $angladesh, 8roc. *nternational 0onference on Rainwater 0istern System, &hailand, +6%+< January /--1 #ense, #irty, #ying #ha!a (/--,) Retrieved Barch /, /--; Website" http"@@www .bangladeshnews.com.bd@/--,@-<@/;@dense%dirty%dying%dha!a@WH4@I(*0)H HISS=*(, B.#., and K*=I ##*(, =.&.B. (/--,), Rainwater Ise in $angladesh N = 0ase Study in

#acope Ipo'illa, 8roc. *nt. 0onf. on Rainwater 0istern System, Banila, /%6 =ugust /--, Bd. Lhale u''aman (/--,) 0an rainwater harvesting be a solution to drin!ing water problem in $angladeshO &he #aily Star, =pril +<, 8age 5 Bd. Bafi'ur Rahman, Hatima Jahra (/--<) 0hallenges for *mplementation of Rain Water Harvesting 8ro3ect in =rsenic =ffected =reas of $angladesh, 0S) #epartment, $I)& (icholson R, Bc=thur J, $urgees W, =hmed LB, Ravenscroft 8, Rahman B. =rsenic poisoning of $angladesh>s groundwater. (ature /--<P 1;."11,. Syed *fte!har =hmed (/--<) #ha!a" Water Resources and Slum #weller>s 0apacity South =sian Journal Budur C. Half of $angladesh population at ris! of arsenic poisoning. $BJ /--<P 1/-",// &anveer Burshed Lhan, Bohammad =bdullah Calib,Saad Siddi ui 8)ng. and Bd. Sera3uddin 8)ng.(/--,), )2ploring a Solution to Water 0risis in #ha!a Betropolitan =rea" 8articipatory =pproach for a Sustainable Solution (C4 Horum for #rin!ing Water Supply and Sanitation