IMC Inclusive Innovation Awards, 2014

Presented By
_______________________________________________________________

Centre for Social Consulting India Private Limited

Team Members:
Mr. Sanny Kumar, MSW
Mr. Santosh Dubey, MASE &
Mr. Mandar Badve , PhD

Addressed Social Issue:

37.7 million people are affected by water borne disease
1.5 million children die alone from diarrhea every year.
73 million working days are lost due to waterborne disease
each year.
The resulting economic loss is estimated at $600 million a year
Rural people in India spend at least Rs.100 each year for the
treatment of water/sanitation-related diseases. According to
the Government of India, this adds up to Rs.6,700 crore
annually, although problem still remain.

Arsenic Poisoning:
137 million people in more than 70 countries are affected by arsenic poisoning
from drinking water.
Prolong intake can lead to: skin, kidney and liver cancer and death.
Bacterial Contamination:
37.7 million people are affected by water borne diseases
1.5 million children die alone from diarrhea every year
73 million working days are lost due to waterborne disease each year
The resulting economic loss is estimated at $600 million a year

Community Based Drinking Water System

Established Community based drinking water purifier in
mining affected area Katrashgarh, Dhanbad, Jharkand.
It doesnt succeed due to unparalleled with community
behaviors, caste system, untouchability, lack of ownership etc.

Portable Purifier for Hand-pumps

At inception, CSC India Team has designed I shape purifier for handpumps. There are absorbent beds that removes the 99% arsenic from the
water and kill the bacteria instantly.

Adsorbent Bed
(Iron coated sand, activated
carbon and activated earth)

Disinfectant
(Chlorine tablet)

Prototype -1

Post Pilot Changes

Product design has been changed due following reason:
o Uncomfortable to keep the bucket under the attached purifier (P-1)
o Continuous blockage while taking water from the hand-pumps.

Prototype -2 L shape has been designed with stainless steel, in

order to solve the previous problems.

Prototype-3
Nylon has been used as connector in stead of Stainless steel due to
chemical reaction between Chlorine and Ferric (FeCl2)
Chlorine bed position has been made in proportion of flow rate of
water.

Village Name

No of
households
No of
No of
covered
Handpumps Handpumps user

Existing Arsenic
Level (PPM)

Pilot Result
(PPM)

Turti pur

15

40

0.226

0.076

Hariya gadh

12

30

0.154

0.038

Kamara para

20

30

0.224

0.079

Sadi Pur

12

40

0.223

0.086

Shivnarayan pur

13

40

0.198

0.070

Durlabh pur

13

30

0.243

0.091

Balua chara

14

24

0.280

0.050

Prototype- 4:
Prototype-4 is final product as per received result from of
laboratory testing.
The purifier capacity has been increased and purification
strength is also durable compare to P-3.
Chlorine solution concentration has been balanced in the
proportion of flow rate of water.
It filters 20,000 liters (approximately continue for 3 months)

Product features
Product Cost

INR 450- 500

Specification

Portable and easy to use

Maintenance cost

No

Electricity

Not required

Filtration Method

Gravitational and Water pressure

Contaminants Removal

Arsenic - 98% & Bacteria - 99%

Product Life

20000 liters (approx 3-4 months)

Refilling

Yes

Global Market Opportunity:

*Source: Water For People (2012)

Developing Countries are our major Target Segment

Main Source of Drinking water is dependent on Bore-wells &
Hand pumps

Market Opportunity In four states

States
Uttar Pradesh1
Bihar2
Jharkhand3
West Bengal4

No of Hand
Pumps

Functional
Hand pumps

Total Outreach
Population

2,010,018

1,407,013

70,350,630

656,048

459,234

22,961,680

296,000

207,200

10,360,000

101,934

71,354

3,567,690

Ground water is the main source of drinking water.

In rural areas hand pumps are mostly used for drawing of water

1: http://www.upjn.org/rural.aspx
2: http://phed.bih.nic.in/Docs/RVP-28-Districts-03-07-2010.pdf
3: http://210.212.20.93:8000/dwsd/home.aspx
4: http://www.wbphed.gov.in/applications/im/uploads/000643.pdf

Avg. Arsenic
level (ppb)
150
700
600
500

Business Model
Products will
be sold by
CSR
Initiatives:
For instance: Water
Walla
DBS Bank
Caring
Friends

Govt. Schemes:
NRDWP
Schemes

There are many home based purifiers available in the market but very few are used
for rural segment due to high cost. Purifier costs vary from INR 1200 to 25000.
Hence, regular use and filter replacement is challenging for rural consumers.
For instance:
Purifiers Name
Kent Gold Plus Water Purifier
Tata Swach Smart Water Purifier
Eureka Forbes Aqua flow Dlx UV Water
Purifier
Our Product

Price
INR 2,200 ($40)
INR 1200 to 1,800 ($20 to $30)
INR 5,125 ($90)
INR 450 ($7)

These high-cost purifiers are typically used by urban consumers, as they have higher purchasing
power capacity and some require electricity. The rural segment is predominantly served by operators
of centralized water treatment plants, such as Naandi Community Water Services. Water is bottled at
the plant and distributed to consumers, which requires significant alteration of existing water
collection behavior. The cost is more than INR 6/ 20L bottle.

Our product has the most robust purification technology (Arsenic, Bacterial
mitigation) at lowest cost of INR 400/ 20,000L (INR 0.02/L).

Capacity of the Unit is 1,00,000 unit per year

Project Cost Component
# Elements
Total Cost in Rs
1 Land and Site Development
360,000
2 Building and Civil Works
650,000
3 Plant and Machinery Cost
500,000
4 Training of Personnel
150,000
5 Miscellaneous Fixed Assets
350,000
6 Contingencies
200,000
7 Preoperative Expenses
300,000
8 Margin Money
500,000
Total
3,010,000

#
1
2
3
4
5
6
7
8
9

Description
Plant Cost
Total Production Unit
Production Cost Per Unit
Required margin per year to overcome plant
cost. (INR)
Per unit margin require to overcome plant
establishment cost (50%)
Per Unit Cost (3+5)
Total Operating expenses Margin per unit
(40%)
Other Margin per unit (30%)
Selling Price per unit

Raw material Cost

RM

Rate

Per Unit Cost/Rs

1 Sand

5000/ton

3.00

2 Ferric Nitrate

26000/ton

5.00

3 Alum

10000/ton

5.00

4 Chlorine Tablets

65000/ton

50.00

5 Ceramic Filter

150/Unit

6 PVC Casing

150/mt

30.00

7 Miscellaneous Cost

3/Unit

3.00

140.00

TOTAL

236.00

Y-1
Y-2
Y-3
Y-4
Y-5
3,010,000
60,000.00
65,000.00
75,000.00
85,000.00
92,000.00
236.00
247.80
260.19
273.20
286.86
50.17
46.31
25.08

23.15

261.08

270.95

260.19

273.20

286.86

104.43

108.38

104.08

109.28

114.74

78.33
443.84

81.29
460.62

78.06
442.32

81.96
464.44

86.06
487.66

Five Years Projection

5 Years Projection
% capacity
utilization
per year

Cost of production
cost (RM 70% +
Utilities 10%)
Packaging
cost
(3%)

Total
Turnover

Gross Margin
(profit before
tax)

Corporate
Tax (33%)

Profit (After
Tax)

Year

Utilization
(Units)

60000

60%

26,630,500

14,160,000

6,266,000

1,505,000

21,931,000

26,630,500

4,699,500

1,550,835

3,148,665

65000

65%

29,940,400

16,107,000

7,044,800

1,505,000

24,656,800

29,940,400

5,283,600

1,743,588

3,540,012

75000

75%

33,174,225

19,514,250

7,805,700

27,319,950

33,174,225

5,854,275

1,931,911

3,922,364

85000

85%

39,477,328

23,221,958

9,288,783

32,510,741

39,477,328

6,966,587

2,298,974

4,667,613

92000

92%

44,864,822

26,391,072

10,556,429

36,947,500

44,864,822

7,917,322

2,612,716

5,304,605

Sales (Rs)

Factory
overheads

Gross cost
of
production

1st year purifier production starts with 60000 unit.

Total Investment will be overcome in two years only.
Projection has been calculated on the basis of assumption

Input
Direct Cost$5000
(Raw Materials)

Indirect cost$22500
Landsite
Development,
building & civil
work, Personnel
training,
Machinery &
equipments
Contingencies

Activities
Staff SalariesOperational Cost
(Electricity,
Rent, Advertisement,
stationery, postages
Marketing &
Promotional activitiesWorkshop training,
Awareness programme

Output

Outcome

15000 hand
pumps will
be covered

Reduction in
water borne
diseases.

300 Million
liters purified
potable
drinking
water /Year

Reduction in
medical expenses

Significant
decrease in
arsenic
toxicity.

Active
participation in
economic
activity.

Reduction in
Mortality Rate.

Rural Livelihood

Impact
Life Expectancy
will improve
Elimination of
water borne diseases.
Financial burden
will be reduced.
60000 HH will
access safe drinking
water.
(i.e. 3 lakh
population approx.)

Assumption
Avg. medical
expenses
$10/person /yr.

Investment50 Lakh

$3.Million
Medical
expenses
on water
borne
disease

$ 1.Million
water
purifier
cost for
60,000
systems

60000HH target in
1st year
$3 avg. income /day
/person
Attribution rate20%

3 lakh
working
days
save.

($3 - $1 + 1)
million =
$3.Million

30% of
$3million =
$2.Million

Dead weight 10%

Drop off 0%
Displacement- 0%

3 lack*$
3/day= $1
Million

Total
Value
SROI
$1.Million

True SROI2Million/.3
Million= $7 per
person

1. Won INR 40,000 from National business plan

competition 2014.
2. Won INR 50,000 from India Africa International
Business Plan Competition, 2014.
3. Top 3 finalist at Global Social Venture Competition, ISB
Hyderabad, 2014
4. Got funded of INR 1,80,000 from an International
Agency, Water Walla, 2014.
5. IIM Lucknow Conclave B-plan winner 2014.
6. INR 3,00,000 funding from Development Bank of
Singapore. 2014

Awards money will be used for as follows

Pilot testing in Bihar States Bhagalpur and Samastipur
District.
Filing for third for approval
Product R&D.

Thank You