2. Citizens for Accountable Governance
Research Methodology
Labour get
paid in terms of
food credits
Food credits
can be used in
Community
Kitchen
We set up a factory to
produce nutritional
biscuits and candies
We set up a
community kitchen
in each slum
Slum Dwellers are daily
wage earners who do
not find work for 8-10
days a month
They can be
employed on these
days
Food Security in Urban
Slums is largely a
Neglected Issue
Social Enterprises are
best placed to address
the Issue
Solution Overview
Field visit to slums in
Ranchi (Jharkhand): Hatma, Katru, Pahadi Tola, Islam Nagar
Research on Slums in Bhopal and Hyderabad
Bhopal (Madhya Pradesh): Indira Nagar, Gautam Nagar
Hyderabad (Andhra Pradesh): Indiramma
Focused Group Discussion
Jharkhand Mahila Samakhya
Subject Matter Expert Opinions
Prof. Ramesh Saran, Dept. of Economics, Ranchi University
Dr. Rajiva Ranjan, Chief Medical Officer, IGMC&H Shimla
Dr. Monica Agarwal, Pediatrician, Dhanwantari Hospital,
Bareilly
Dr. Rahi – Rajendra Institute of Medical Sciences, Ranchi
Dr. Sahela – Rajendra Institute of Medical Sciences, Ranchi
3. Citizens for Accountable Governance
Food Security in Urban Slums: A neglected issue
Source: Food and Agriculture Organization (FAO), UN
The largest cities by population are moving to the
developing world, increasing the people residing in
the urban slums
Rank 2000 2050
Mumbai 5 2
Delhi 6 3
Kolkata 8 8
Source: World database of large urban areas, Nordpil.com
0 50 100 150 200 250
Developed World
Middle East/North Africa
Latin America/Caribbean
Sub-Saharan Africa
0
200
400
600
800
Rural Urban
Global food insecure population
distribution (millions), 2010
Total undernourished people by region (millions), 2010
Source: Food and Agriculture Organization (FAO), UN
Not Enough/
Good Food
Disease or
Illness
Lost time
from school
or work
Insufficient
funds to buy
food
Resulting Vicious
Poverty Cycle
4. Citizens for Accountable Governance
Poor slum dwellers need food which is Safe, Sufficient,
Affordable and Easily Accessible
IS IT EASY TO CONSUME
Is it ready to eat?
Does it fit my culture?
Does it taste good?
IS IT EASY TO FIND?
Is it close by?
Is it available when I need it?
Is it in my budget?
IS IT GOOD FOR MY
HEALTH?
Do I have enough?
Is it nutritious?
Is it safe?
DO I KNOW WHAT THE
RIGHT CHOICES ARE?
Climate Change will increase uncertainty
In food production
Growing population means
increasing demand for food
Increasing land degradation
and demand for cash crops
Large fluctuations in food prices
and rising inflation
Innovation in agricultural machinery
and farming methods is stagnating
Challenges are Growing Every Passing Day Current Concerns of an Urban Slum Dweller
Nasreen Khatoun’s tiny, cramped and poorly built home is in the Bhagwanpura slum in New Delhi. Nasreen lost
two of her children to malnutrition when they were just two years old. Her daughter was the first to pass away.
“She died of acute malnutrition; she seemed to have dried up. She was just skin and bones,” says Nasreen. “Prices
have doubled of everything in the last one year. Everything is expensive the children eat only one meal a day.
There is no assistance. We don’t know what to feed our children.”
5. Citizens for Accountable Governance
Business Model and Value Proposition
Governments see slums
as illegal habitats
The private sector finds
slums unattractive for
business
NGOs have not made
enough progress
upgrading slums
Food security in slums is not a priority for governments, the
private sector and NGOs
Aahaar
Access
Affordabili
ty
Absorptio
n
3As of Food
Crisis
Aahar’s Value Proposition
Source: Task Force on Improving the Lives of Slum Dwellers, UN Millennium Project, 2005
6. Citizens for Accountable Governance
Business Model and Value Proposition
Our proposed solution combines the principles of banking and insurance to create a sustainable model to
eradicate hunger
Stakeholders
Women - Work as maids
in nearby households
Most work only in
mornings and evenings
Men - Daily wage earners
Do not find work for
approx. 8-10 days in a
month
Children - Some of them
work as rag pickers
Like to eat biscuits,
candies and street food
Available
Free Time
Work in a biscuit factory which produces
nutritional biscuits and candies. In
return, they earn food credits which can
be used in a community kitchen
Work in the community kitchen. The
profit earned from the biscuit factory is
used to run the kitchen. It acts as a food
insurance institution – providing food to
people with food credits.
Work in factory or
Community kitchen
Earn food credits
Get food in
community kitchen
7. Citizens for Accountable Governance
Pilot Project: Indira Nagar, Bhopal
Total Population
52,000
18% live on less than $1 a day
9375
40% are willing to avail our services
3750
40% are of working age
1500
8. Citizens for Accountable Governance
Revenue Model
+
300,000
60,000
42,000
70%
8,400
20%
252,000Monthly biscuit demand
For our demand calculation, we considered a population base of 300,000. Considering a family consists of 5
members, the total number of families comes out to be 60,000. Out of that, if 70% consume biscuits and out
of these 70%, if we can capture a market size of 20%, our target number of families will be 8,400. If each
family buys 1 packet of biscuit per day, the monthly demand will be 252,000.
Re. 1 out of Rs. 4
Based on our research, we found that the cost of labour
for Rs. 4 biscuit packet is Re. 1. So, if we can get workers to
work for the biscuit factory in exchange of food credits, we
can save Re. 1 on each pack of biscuit.
9. Citizens for Accountable Governance
Revenue Model (contd.)
Biscuit Demand – 252,000
Margin on each pack of
biscuit – Rs. 2
Total saving per month –
Rs. 5,04,000
Cost of food for an adult
and a child for 8 days per
month (as we will give food
credit worth 100 days per
year) = 40x8x1500 = Rs.
4,80,000
Income Statement – Community Kitchen (in Rs.)
Revenue 483000
Less: Cost of Goods Sold 362250
Gross Profit 120750
Operating Expenses
Rent 5000
Wages NIL
Depreciation 9660
Fixed Cost 1666.5
Other Operating
Expenses
77280
EBIT 27143.5
Tax 8143
PAT 19000.5
10. Citizens for Accountable Governance
Aadhar Tries to Mitigate Major Challenges
Finances might not be
efficient
Though Aahar is operating with
thin margins, it does not require
huge upfront investments, giving
it the required flexibility
Limited Infrastructure is
difficult to manage
Aahar operates in Urban areas
which provides basic
infrastructure. Also factories
would be located near slums.
Consumers with limited and
fluctuating incomes are
difficult to serve
Bank-Surance scheme offered by
Aahar guarantees food for the
slum dwellers
Partners across the value
chain are driven by profits
and not quality
Aahar manufactures food on its
own and also its distribution
system ensures safe & nutritious
food
Challenges
&
Mitigations
11. Citizens for Accountable Governance
Significant Impact in the Coming Years
Sales at
Community
Kitchen
Sales of
nutritious
food
Insurance
Policy
Total
Impact
More than INR 100 per day
INR 50- INR 100 per day
Less than INR 50 per day
20%
62%
18%
Total Number of Slum Households in India are
1.37 Crore
62% of the Household income in urban slums
range between INR 50 to INR 100 per day
Impact(No.OfHouseholds)
Year
8.5 lac
40 lac
65 lac
2 4
Considerable Scalability Targeted
65 lac households targeted in the next
Four Years
Source: National Census, 2011
13. Citizens for Accountable Governance
Survey Analysis
18%
62%
15%
0% 20% 40% 60% 80%
Less Than 1
1 to 3
3 to 5
Earnings Per Day($)
Assured No. of Meals Per Day
16%
33%
41%
0% 10% 20% 30% 40% 50%
None
1
2
32%
27%
41%
0% 10% 20% 30% 40% 50%
25-30
22-25
22 or less
16%
84%
0% 20% 40% 60% 80% 100%
Yes
No
Do you know about Nutrient
requirements
14. Citizens for Accountable Governance
Survey Analysis Contd…
32%
63%
5%
0% 20% 40% 60% 80%
Yes
No
Can't Say
Is PDS Effective?
Biscuit Brand Preference
25%
22%
53%
0% 20% 40% 60%
Parle G
Tiger
Local Brand
70%
23%
7%
0% 20% 40% 60% 80%
Prefer Buiscuits
Do not Prefer
Can't Say
Biscuit Preference
18%
13%
12%
57%
0% 10% 20% 30% 40% 50% 60%
Breakfast
Lunch
Dinner
Anytime
Biscuit Consumption
