Pani ghar overview


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Introduction about an innovative and practical business model about providing safe drinking water to low income groups

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Pani ghar overview

  1. 1. Pani Ghar “ A project to provide safe drinking water in low income urban areas at affordable price” Ali Salman ( [email_address] )
  2. 2. Outline <ul><li>Problem: Access to clean drinking water and Equity </li></ul><ul><li>Technology: A Six Step process </li></ul><ul><li>Organizational Model </li></ul><ul><li>Financial Model </li></ul><ul><li>Steps to start a Pani Ghar </li></ul><ul><li>Project Updates </li></ul><ul><li>Pani Ghar Plans </li></ul><ul><li>Desired Output and Impact </li></ul><ul><li>LEAD and Pani Ghar </li></ul>
  3. 3. Problem <ul><li>Over 50% of Pakistanis do not have access to clean drinking water </li></ul><ul><li>Over 40% diseases are water-borne </li></ul><ul><li>The government/municipal supply is unreliable with a few exceptions </li></ul><ul><li>The bottled water is mostly highly priced </li></ul><ul><li>Household Filters are unreliable and needs replacement </li></ul><ul><li>Government plants not working properly </li></ul>
  4. 4. Purpose of project <ul><li>To provide clean and safe drinking water at affordable prices in low income urban areas through out Pakistan. </li></ul><ul><li>To provide reasonable employment opportunities through outlets and franchises. </li></ul><ul><li>To develop a sustainable and self propagating system for provision of drinking water </li></ul>
  5. 5. UN HDR 2006: Equity Issue <ul><li>UN HDR 2006 report emphasizes equity issue as a gap in service quality in safe drinking water between top 20% and bottom 20%. </li></ul><ul><li>Pani Ghar resolves to address the equity issue by providing a high quality product and service. </li></ul>
  6. 6. Market Overview
  7. 7. Technology <ul><li>Pre-filtration </li></ul><ul><li>Activated Carbon Treatment </li></ul><ul><li>Polishing Filtration </li></ul><ul><li>Ultra Violet Disinfection </li></ul><ul><li>Storage </li></ul><ul><li>Cold Drinking Water </li></ul><ul><li>Capacity: 18,000 liters/day (12 hours operation) </li></ul>
  8. 8. Steps to start a Pani Ghar <ul><li>Identification of proposed locations </li></ul><ul><li>Tests of water quality </li></ul><ul><li>Consumer survey/ Household survey (Primary and/or Secondary) </li></ul><ul><li>Selection of location and/or Franchisee </li></ul><ul><li>Selection of local partners like NGOs, Doctors etc. </li></ul><ul><li>Order Plant </li></ul><ul><li>Prepare the outlet </li></ul><ul><li>Commission the outlet </li></ul>
  9. 9. Business Model <ul><li>Marketing </li></ul><ul><ul><li>Education and Awareness </li></ul></ul><ul><ul><li>Advertisement </li></ul></ul><ul><ul><li>Promotion and Incentives </li></ul></ul><ul><ul><li>Lucky Draw for Hepatitis Course </li></ul></ul><ul><ul><li>Free for Doctors for certain level of referrals </li></ul></ul>
  10. 10. Business Model <ul><li>Operations and Controls: Challenges </li></ul><ul><ul><li>Cash Collection </li></ul></ul><ul><ul><li>Machine Service </li></ul></ul><ul><ul><li>Monitoring </li></ul></ul>
  11. 11. Business Options <ul><li>Company Owned and Operated Outlets </li></ul><ul><li>Company Owned-NGO Assisted Outlets </li></ul><ul><li>NGO Owned-Company Assisted Outlets </li></ul><ul><li>Individual Owned-Company Assisted Outlets </li></ul><ul><li>CCB-Owned, Company Operated Outlets </li></ul><ul><li>Institution Owned, Company Operated </li></ul>
  12. 12. Risks and Strategies <ul><li>Prices of input: Especially the prices of stainless steel, UV Lamp and Copper etc. are highly volatile. </li></ul><ul><ul><li>Buy advance </li></ul></ul><ul><li>Selection of location and franchisee </li></ul><ul><ul><li>Extensive research and interviews </li></ul></ul><ul><ul><li>Supporting and Helping Franchisee </li></ul></ul>
  13. 13. Central Assumptions for Outlet   Sales Costs Gross Income Income Profitability Max Number of Households: 1000  Rs.   Rs. Rs.   Start Level: 50 households, add 20 each month     Monthly Quarterly   Start up Level (Q 1) 116,000 163,992 (47,992) (143,975) - Sustainable Level (Q 2) 171,000 165,529 5,471 16,414 69% Sustainable Level (Q 3) 174,000 167,184 6,816 20,448 69% Optimum Level (Q 4) 341,000 168,967 172,033 516,100 84%
  14. 14. Snapshot
  15. 15. Corporate: Organization (Proposed) Acumen Fund NGO/CBO Franchise Syntech Fibres LEAD Pani Ghar
  16. 16. Equity Participation <ul><li>A private limited company </li></ul><ul><li>Shares to be allotted to the Fund and founding directors. </li></ul><ul><li>Dividends to be paid in light of Board of Directors decision each year (Retained Earnings vs Dividends) </li></ul>
  17. 17. Scaling Up <ul><li>Stage 1 (2007: Systems Development) </li></ul><ul><ul><li>05 Company Operated Outlets in Year 2007 </li></ul></ul><ul><ul><li>Concentration in Lahore </li></ul></ul><ul><ul><li>Analyze Results, Develop Systems and Confirm Strategy </li></ul></ul><ul><li>Stage 2 (2008-2011: Scaling up) </li></ul><ul><ul><li>Award Franchises </li></ul></ul><ul><ul><li>Speed up Company operated outlets </li></ul></ul><ul><li>Stage 3 (2011-2015: Consolidation & Expansion) </li></ul><ul><ul><li>Contribution to MDG Goals </li></ul></ul><ul><ul><li>Pani Ghar contributes towards this goal </li></ul></ul>
  18. 18. Scaling Plan   Comp. Oper Franchise   2007 05 10 15 2008 25 25 50 2009 100 100 200 2010 150 200 350 2011 200 400 600       1065
  19. 19. Desired Output <ul><li>Output: Establish 05 Pani Ghar in Year 1 and establish 1000 outlets by the end of Year 5 </li></ul><ul><li>Direct and indirect income opportunities for people </li></ul><ul><li>Sales Tax contribution to national exchequer </li></ul>
  20. 20. Desired Outcome <ul><li>Increase access to clean drinking water in Pakistan </li></ul><ul><li>Increase equity in service quality across income groups </li></ul><ul><li>Reducing the probability of water borne diseases in users </li></ul><ul><li>Contribute in better life standard, better sanitation. </li></ul>