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Pochampally Chenetha Kalanetha 020708
 

Pochampally Chenetha Kalanetha 020708

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Pochampally Chenetha Kalanetha 020708 Pochampally Chenetha Kalanetha 020708 Presentation Transcript

  • Srijan Microfinance Business Plan Competition Final Round Presentations, 3 July 2008 Pochampally Chenetha Kalanetha (start up) Pochampally Chenetha Kalanetha Collectives Business Plan (2008 -2011)
  • Overview
    • Entrepreneurs’ profile
    • Business Proposition
    • Financial Analysis
    • Management and Human Resources
  • Entrepreneurs’ Profile
  • Entrepreneurs’ Profile
    • G Muralidhar – Project Lead
    • Murali Vepoor – Project Coordinator
    • Supported by a multidisciplinary team with 100+ person years of experience in livelihoods domain
    • Motivated by a desire to apply the livelihoods principles and interventions for the benefit of the poor and the marginalized.
    • Familiar with most of the weaving clusters in and around Andhra Pradesh.
    • Associated with the work of several NGOs and weaver leaders in Pochampally cluster.
  • Entrepreneurs’ Profile
    • G Muralidhar – Project Lead
      • 20 + years of experience as Development Management Professional; Livelihoods Thought Leader
      • Intense exposure and experience in diversified livelihoods portfolio – NTFP, Dairy, Oilseeds, Paddy, Handlooms, Watershed Development, Tribal Development etc.
      • Instrumental in linking collectives with markets
      • Core competency in building/nurturing/ supporting people and organizations at various levels, that work with the poor
      • Specific experiences include:
        • State Project Advisor, Livelihoods - SERP
        • Member of the core team of NDDB-MIO
  • Entrepreneurs’ Profile
    • Murali Vepoor – Project Coordinator
      • 13 + years of experience in working with People’s Projects like Watersheds, UNDP, Velugu/IKP, NREGA etc.; People’s Projects Facilitator
      • Core competency include participatory methodologies, CBO visioning and strategic planning
      • Specific experiences include:
        • collectivizing the poor producers in Mahabubnagar
        • collectivising the poor in Pochampally and coordinating the ETP Project, Defluoridation plants and Zero-waste planning
  • Akshara
    • Akshara Network is a not-for-profit development support organization initiated by practicing development management professionals to fulfill the need for affordable and timely professional support to individuals and organizations in the development sector.
    • Key Achievements –
    • Outreach 20+ million poor families
    • 10000 + inducted into livelihoods thought & practice
    • Worked with 100 + organizations
    • Worked in 12 States in the country
  • Business Proposition
  • Business Concept Pochampally Current Reality
    • Weaving cluster
    • Not remunerative for Weavers
    • Weaving is one of the livelihoods
    • Push & Pull migrations are prevalent
    • Non-weaving communities into weaving
    • Movement from Cotton to Silk
  • Business Concept Livelihoods Framework
    • Livelihoods is the Play of Six Capitals (natural, physical, social, human, financial and spiritual) towards Four Arrows (income, expenditure, employment and risk) within Four Contexts (ecological, techno-economic, distribution and income-expenditure pattern)
  • Business Concept Proposition
    • Work with the entire poor in the village and not just with poor weavers
    • Solution through Pochampally Chenetha Kalanetha
      • Enhance capacities of the poor to place them on the cutting edge of the market;
      • Build enabling infrastructure for the poor including collectives; and
      • Facilitate improved access to funds and various linkages for the poor
  • Products and Methodologies
    • Pochampally Chenetha Kalanetha offers the following products/services –
    • Promotion of in situ experimentation – to bring out newer designs and value added products. This initiative will help move the artisans towards the right side of value-chain
    • Building Collectives of the poor – to collectively manage costs and risks and to benefit from scale in procurement and sales
    • Access to leverage fund and linkages – to enable poor to break free from existing supply channel web
  • Products’ Road Map
    • In situ experimentation –
    • Collectives will take up experimentation
    • Gurus will be identified and oriented
    • Gurukulams will be set up
    • Risks and costs will be supported
    • 10 innovations in 3 years
    • Collectives –
    • Geographic/Product specific Collectives (2500 members)
    • Managed by professionals hired by Collectives
    • Handholding support by PCK initially
    • Funds & Linkages –
    • Rs.12.5 Million Leverage Fund to Collectives for meeting members’ credit and working capital needs
    • Rs.1.0 Million Risk fund to absorb risks in experimentation
    • Convergence, Bank Linkages, backward and forward linkages for Collectives
  • Areas of Operation
    • Geographic Outreach in coming 3 Years – 50 villages in Pochampally cluster
  • Target Market and Customer Base
    • Target Market – The Poor in the weaving villages of Pochampally cluster (including silk and cotton weavers, non-weaving artisans and other poor practicing other livelihoods) – 25000 families
    • Customer Base - For the plan period 2008-2011, the outreach will be 2500 poor families, of which weaving families will be more than 50%
    • Competitive Analysis –
      • Currently there is no service provider offering end-to-end (production to market) integrated services like PCK
      • In weaving villages, most organizations work with only poor weavers but not with poor in general. Inclusive approach is absent which is the unique strength of PCK
  • SWOT Analysis
    • Strengths
    • Strong team with intense and wide development experience
    • Established experience in weaving villages
    • Partnerships
    • Weaknesses
    • Limited rapport with other villages in Pochampally cluster
    • Limited exposure to marketing channels like e-marketing etc
    • Threats
    • Artisans feel insecure to lose existing trade relations
    • Traders might engage in unhealthy competition
    • Opportunities
    • Recognized GI
    • Pochampally - a recognized brand
    • Niche market is not saturated yet
  • Social Impact
    • By the end of the plan period –
    • Collectives servicing 2500+ families will have turnover of Rs.35+ Million
    • 5 functional outlets, independently managed by the collective
    • 10 design and process innovations tried out by the community in various livelihoods
    • Rs.2000 savings and Rs.10000 increase in income per target poor household
    • Access to cost-effective financial services
    • Significant risk bearing capacity of members
  • Financial Analysis
  • Growth Projections In three years: Coverage: Families  2500 Company Revenue: Rs.3.4 Million/year Collectives’ Turnover: Rs.25 Million/Year Additional benefit to members: Rs.25 Million/Year In the long-run (in a decade): 50000 families Company Revenue to cross Rs.10 Million/year Collectives’ Turnover to cross Rs.500 Million/year
  • Growth Projections (Rs in Million) 48 21 ROA % - Company + Collectives 144 108 SROI 10.7 10.7 10.7 8.5 5.5 Total Grants (cumulative) 19 4 Return on Assets % - Company Particulars 2008-09 2009-10 2010-11 2011-12 2012-13 INR INR INR INR INR Total Income 0.1 1.7 3.4 5.3 9.3 EBITDA (Earnings before Interest, Tax, Depreciation, Provisions)   -9.1 -3.4  -1.5 2.5 7.0 PAT   -9.2 -4.5  -2.7 1.2 5.6 Total Shareholders Funds (at-the-end-of-the-year) 8.8 8.8  8.8  8.8 8.8 Total Debts (end of the year) 0.0   10.0 10.5 10.5 10.5
  • Financial Ratios 8.75 Million Equity Requirement (INR) 10.70 Million Grant Requirement (INR) Particulars Current (or 2008/2009) 2011/12 (Projected) 2012/13 (Projected) Turnover Company (INR Million) 0.1 5.3 9.3 Turnover Collectives (INR Million) 1.0 58.5 108.0 Turnover Company + Collectives (INR Million) 1.1 63.8 117.3 Operating and administrative expenses/average gross turnover (%) – Company/Company + Collectives 9200/837 53/4 25/2
    • Profit after Tax / Gross Turnover (%)
    • Company/Company + Collectives
    -9181/835 23/2 60/5 Return on Assets (ROA) % - Company/Company + Collectives 4/21 19/48 SROI % 108 144 Debt to Equity ratio 0 1.21 0.80 Debt Requirement (INR) 10.55 Million
  • Management and Human Resources
  • Management and Human Resources Management Committee (5+2) (for review, e-support, finance and process support) from Akshara Project Lead Mgmt Oversight Project Coordinator COO/Team Leader Project Support (15) (for facilitation, documentation, resource persons) from Akshara Project Staff (16) Resident Manager Livelihoods & Marketing Managers Executives Accountants Other Staff Governance & Staff for Collectives Management
  • Way Forward
    • For the interventions to evolve on a desired scale and deliver results to the 2500 Poor households, Pochampally Chenetha Kalanetha seeks –
      • Rs. 30.00 Million over a period of 3 years as below:
      • Rs. 7.75 Million as Equity from Venture Capital
      • Rs. 10.55 Million as Loan from Venture Capital
      • Rs. 10.70 Million as Grant
      • The Loan shall be repaid over a period of 5 years from revenues generated through:
        • Service charges from collectives
        • Interest on funds given to collectives
  • Thank You
    • Pochampally Chenetha Kalanetha
    • c/o Akshara Network
    • HIG II B 25 F 6 APHB Colony Baghlingampally
    • Hyderabad – 44, Andhra Pradesh.
    • G Muralidhar – 9394843008
    • [email_address] , [email_address]
    • Vepoor Muralidhar – 9849930037
    • [email_address]
    • www.kalanetha.com
    • www.aksharakriti.org