Citizens for Accountable Governance
Theme: Nourish to Flourish; Reducing Malnutrition
Submitted By:
Anshuman Bharati, Nita...
Citizens for Accountable Governance
Research Methodology
Labour get
paid in terms of
food credits
Food credits
can be used...
Citizens for Accountable Governance
Food Security in Urban Slums: A neglected issue
Source: Food and Agriculture Organizat...
Citizens for Accountable Governance
Poor slum dwellers need food which is Safe, Sufficient,
Affordable and Easily Accessib...
Citizens for Accountable Governance
Business Model and Value Proposition
Governments see slums
as illegal habitats
The pri...
Citizens for Accountable Governance
Business Model and Value Proposition
Our proposed solution combines the principles of ...
Citizens for Accountable Governance
Pilot Project: Indira Nagar, Bhopal
Total Population
52,000
18% live on less than $1 a...
Citizens for Accountable Governance
Revenue Model
+
300,000
60,000
42,000
70%
8,400
20%
252,000Monthly biscuit demand
For ...
Citizens for Accountable Governance
Revenue Model (contd.)
Biscuit Demand – 252,000
Margin on each pack of
biscuit – Rs. 2...
Citizens for Accountable Governance
Aadhar Tries to Mitigate Major Challenges
Finances might not be
efficient
Though Aahar...
Citizens for Accountable Governance
Significant Impact in the Coming Years
Sales at
Community
Kitchen
Sales of
nutritious
...
Citizens for Accountable Governance
Appendix
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 ...
Citizens for Accountable Governance
Survey Analysis Contd…
32%
63%
5%
0% 20% 40% 60% 80%
Yes
No
Can't Say
Is PDS Effective...
Citizens for Accountable Governance
Recommended Dietary Allowances
Sedentary Moderate Heavy Lactation
Man Woman Man Woman ...
Citizens for Accountable Governance
Commodities Unmet Need(%)
Rice 19.1
Wheat 14.5
Corn 38
Pulses 82.6
Food Oil 85.5
Veget...
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  1. 1. Citizens for Accountable Governance Theme: Nourish to Flourish; Reducing Malnutrition Submitted By: Anshuman Bharati, Nitansh Platia, Pulkit Bohra, Rohit Agarwal, Shobhit Saxena College: IIM Ranchi Aahaar
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
  12. 12. Citizens for Accountable Governance Appendix
  13. 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. 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
  15. 15. Citizens for Accountable Governance Recommended Dietary Allowances Sedentary Moderate Heavy Lactation Man Woman Man Woman Man Woman Pregnant Women 0-6m 6-12m Protein(g) 60 50 60 50 60 50 +15 +25 +18 Fat(g) 20 20 20 20 20 20 30 45 45 Net Energy(Kcal) 2425 1875 2875 2225 3800 2925 +300 +550 +400 Calcium(mg) 400 400 400 400 400 400 1000 1000 1000 Iron(mg) 28 30 28 30 28 30 38 30 30 Vitamin A : Retinol 600 600 600 600 600 600 600 950 950 βcarotene(µg) 2400 2400 2400 2400 2400 2400 2400 3800 3800 Thiamin(mg) 1.2 0.9 1.4 1.1 1.6 1.2 +0.2 +0.3 +0.2 Riboflavin(mg) 1.4 1.1 1.6 1.3 1.9 1.5 +0.2 +0.3 +0.2 Nicotinic acid(mg) 16 12 18 14 21 16 +2 +4 +3 Pyridoxin(mg) 2 2 2 2 2 2 2.5 2.5 2.5 Ascorboc acid(mg) 40 40 40 40 40 40 40 80 80 Folic Acid(µg) 100 100 100 100 100 100 400 150 150 Vitamin B12(µg) 1 1 1 1 1 1 1 1.5 1.5
  16. 16. Citizens for Accountable Governance Commodities Unmet Need(%) Rice 19.1 Wheat 14.5 Corn 38 Pulses 82.6 Food Oil 85.5 Vegetable 95 FoodSecurityPlan Gm Cost($) Sugar 250 $ 0.15 Rice 290 $ 0.27 Pulses 300 $ 0.27 Oil 100ml $ 0.71 Potato 1030 $ 3.42 InexpensiveSourcesfor1000 Calories

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