Bicycle for india himanshu

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  • You may find this cardboard bicycle that was supposedly made with $9 worth of parts interesting..

    http://news.cnet.com/8301-17938_105-57481444-1/this-$9-cardboard-bike-is-a-smooth-recycled-ride/
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Bicycle for india himanshu

  1. 1. Bicycle for IndiaBy Vijaya Narayanpeddy and Nancy Sampson Himanshu Singh (1012)
  2. 2. “Affordability isn’t everythingIt’s the only thing” -Paul Polak
  3. 3.  International Development Enterprise Founded in 1981 International not-for-profit corporation devoted to the manufacture, marketing, and, scalable micro-irrigation and other low-cost water recovery systems throughout the developing world Facilitates local manufacture and distribution of these products through local supply chains that sell to farmers at an affordable price This strategy allows farmers to grow higher value and surplus crops, and in turn links them to high-value crop markets where they can realize profits from their higher yields.
  4. 4.  Mainly work in Africa (Burkina Faso, Ghana, Ethiopia, Zambia, Zimbabwe, Mozambique), Asia (India, Nepal, Bangladesh, Myanmar, Cambodia and Vietnam) and Latin America (Honduras and Nicaragua) Decentralized organizational structure Head office in India - New Delhi Field office in in India - Orissa, West Bengal, Aurangabad, Bangalore, Indore, Himachal Pradesh and Udaipur
  5. 5. Bicycles
  6. 6. Bicycles
  7. 7. The Bicycle Project Started in the year 1992 A challenge for designing bicycle for farmers living in rural area, to take farm produce to the market. Those farmers, who cannot afford to buy a bicycle (i.e previously they don’t own a bicycle <Target customer>) Would improve global environment. Rob Carter, a mechanical engineer involved in the project
  8. 8. Target Area Urban Consumer Rural Urban Producer Rural
  9. 9. Some facts (As of year 1994) Total population = 952 million Approx. 50% live BPL, now 41.6% Average annual income = $270 (Rs 8100) 76% population living in rural area are farmers.  10% of farmers are “landlords” having 10-50 acre land  70% are “small farmers” having less than 10 acre land  20% do not have any land. Income status of farmers  50% earns less than Rs 4000 per year (Rs 333.33 pm)  30% earns Rs 12,000-30,000 per year (Rs 1000 - 2500pm)  20% earns more than Rs 30,000
  10. 10. Some facts (As of year 1994) In 1994, India produced 7.4 million bicycles (7.3% of the world production) - Not affordable to farmers Price range of Hero models was Rs 930 - 2500 Market status Hero Atlas BSA Others 10% 15% 50% Market Leader is ‘Hero’ 25%
  11. 11. The bicycle project IDE bicycles must have;  Simple design – could be manufactured and served in rural setting  Durable, with ease of maintenance  Minimum speed capability of 6 miles an hour (twice the speed of walking)  Withstand gravel-paved or dirt roads  Transport of minimum 50Kg of cargo  Retail including profit margin at not more than $ 15 (approx Rs 450) %15 is a target lesser than the minimum price in India for a bicycle. IDE also emphasized on the price, that it should not be higher than the second hand bicycle.
  12. 12. Technological development Main aim to reduce the cost  Stripped bells and whistles  Chins and sprockets were removed and the drive was placed directly on the first wheel  Sheet metal was to be used to make the frame The key success of the project rested on a wheel (How??)  Cheapest wheel available was of $5 each. i.e. $10 for both wheel  Frame and front fork will cost $ 10  Over all cost would reach $20 (Higher than the ceiling retail price)  Plastic Wheel can be the solution (given by Joe Montgomery)
  13. 13. IDE concern Their bike would be the cheapest With the increase in income gradually, target consumer may shift towards the conventional bicycle.
  14. 14. Field Testing Prototype suitable to Indian farmers were made, and tested Subcontracted to local village NGOs Mixed response  Stable/unstable  Easy/difficult ride Farmers found it uncomfortable Limited carrying capacity
  15. 15. The challenge To find solution for wheel and bearings Samples were•Plastic wheel made collected and wereup of nylon reinforced sent for physicalwith fiberglass (used testing in University ofin wheelchair) – Itwould be costly Colorado•Polypropylene –found in twine used Later Canadian firm alsofor bailing hay, will be shown unwillingness toreinforced with jute. make more samples
  16. 16. The challenge Cannondale - An American bicycle manufacturer was very impressed with what Paul has done Paul realized that Best fit is in Hero, but his ceiling price is too low to agree Hero upon Or Paul should look for other industrial giants like Tatas and Birlas as partners
  17. 17. 4 A analysis Awareness - Positive Availability - Positive Affordability - Positive Acceptability - Positive
  18. 18. What he should do?? SCRAP CONTINUE

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