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. 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
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. Target Area
Urban Consumer Rural
Urban
Producer
Rural
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. 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. 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. 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.
14. IDE concern
Their bike would be the cheapest
With the increase in income gradually, target
consumer may shift towards the conventional
bicycle.
15. 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
16. The challenge
To find solution for wheel and bearings
Samples were
•Plastic wheel made collected and were
up of nylon reinforced sent for physical
with fiberglass (used
testing in University of
in wheelchair) – It
would be costly Colorado
•Polypropylene –
found in twine used Later Canadian firm also
for bailing hay, will be shown unwillingness to
reinforced with jute. make more samples
17. 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
