A nshu final project 20140418-120958

Socio-Economic Impact Assessment 2012
Title of the project:
“Socio- Economic Impact Assessment of the Women Empowerment Projects”
Division: Social Investment
Corporate Social Responsibility
Project: Sunehra Kal
Sub Project: Women Empowerment
Final Report
Research Timeline: 26th march – 15th June
Submitted by:
Anshu Singh
The Energy Resource Institute
Roll No. 1002 MPD
Degree of Master of Arts in
Sustainable Development Practice
1

ACKNOWLEDGEMENT
I owe a great many thanks to a great many people who helped and
supported us during my major project at Social Investment Division, ITC
Limited.
My deepest thanks to Internal Supervisor Professor Suresh Jain and
External Supervisor Mr Jayant Kumar, Regional Manager at CSR division ITC
Ltd and professors Dr. Mala Reddy and Dr. Smriti Das, our course coordinators,
for the support and guidance they gave me before and during my project. I
express my thanks to Teri University for support and allowing me to be part of
this dynamic institution. Also I am grateful to the Social Investment Division at
ITC Limited for giving me valuable insight on impact assessment tools and
giving me foundations on project evaluation procedures.
I also would to express deep appreciation to the villagers of Munger
District who forgo their precious time and energy and for their co-operation
during the impact assessment. I would also like to convey my deepest thanks to
various field workers for their suport.
We would like to express our whole-hearted thanks and appreciation to
Self Employed Women Association for their support.
I would also thank my Institution and my faculty members without whom
this project would have been a distant reality. I also extend my heartfelt thanks to
my family and well wishers.
2

Research Abstract
This study assesses the Socio- Economic Impact of the Corporate Social Responsibility Project
on the Social and Economic Empowerment of Women and its implication. The need to evaluate
the project’s effect in terms of empowerment arises due to the perception that intervention in
the form of projects has effects on women development in the province due to institutional and
cultural factors. Different types of assessment tools have been used by the researcher in order
to identify the key impacts in the grass root level. The project areas were divided into clusters
so as to study the effect of the project in the community at different level. The project aims to
provide useful insights into the issues of women empowerment. The research outcome and
findings will help to evaluate the improvements in the indicators such as capacity building,
access to micro-credit, involvement in economic activities and mitigate the negative impact.
This report will help to monitor and evaluate the overall impact of the project in th e
intervention area. The report also provides the recommendation for the identified problem in
the area. The recommendation focuses upon the need for design intervention at grass root level
which intends to have positive effect on the project beneficiaries.
Keywords: Socio-Economic Impact Assessment, Corporate Social Responsibility, Women
Empowerment, Project Evaluation, Project Beneficiaries.
3

Table of Contents
4
Chapter 1
i. Project Introduction ................................................................................................ 8
ii. Research Background ............................................................................................. 9
iii. Project Description ................................................................................................. 9
Chapter 2
iv. Research Objective ............................................................................................... 10
v. Purpose and Goal .................................................................................................. 10
vi. Research Question ................................................................................................ 10
vii. Research Methodology.......................................................................................... 11
viii. Study Design ........................................................................................................ 12
ix. Sampling Procedure .............................................................................................. 13
x. Limitation of the Study…………………………….………..……..………………….14
Chapter 3
xi. Structure and Performance of Project SHG’s ......................................................16-18
xii. Comparative Data Analysis ( Project Vs Non-Project SHG)……...…...........…….19-27
Chapter 4
xiii. Socio Economic Impact Assessment .................................................................28-29
xiv. Scoping Matrix ………………………………………………....………………....30
Xv Findings …...............................................................................................................32-37
Xvi Logic Model……………………………………………………………………….38-39
Xvii Case Study ………………………………………………………………………..40-43
Xviii Research Outcome & Challenges…........................................................................44-47
Chapter 5
xvii Recommendation 1………….…………………………………………………..48-51
Xviii Recommendation 2……………………………………………………………...52-53
Xix Conclusion …………….......................................................................................54
Xix References…………………………………………………………………….…45
Chapter 6: Annexure
Annexure 1 Survey Questionnaire ……………………………………………….….56-58
Annexure 2 Sample Selection…………………………………………………...……59
Annexure 3 Research Assessment tool…………………………………………...….60
Annexure 4 Project Are a…………………………………………………………….60
Annexure 5 Scoping Matrix……………………………………………………….....61

List of Tables
Table 1: Sample Frame for the SHG Study
Table 2: Sample Frame for Project Impact Assessment
Table 3: Stratification of the Sample
Table 4: Structure of Self Help Group
Table 5: An analysis of factors Responsible for SHG formation
Table 6: SHG Savings on bank as on April 2012
Table 7: SHG per Member Saving in bank as on April 2012
Table 8: Loan Operation
Table 9: Loan Repayment by SHG
Table 10: Level of efficacy of Project Vs Non Project SHG
Table 11: Beneficiary Assessment
List of Figures
Fig. 1 Project Activities
Fig. 2 SHG saving on bank as on April 2012
Fig.3 SHG per Member saving in bank as on April 2012
Fig.4 Loan Operation
Fig .5 Loan Repayments by SHG
Fig .6 level of efficacy
Fig.7 Member timeline
Fig. 8 Production timeline
Fig.9 Socio-Economic Impact Assessment in the Nutshell
Fig.10 Agarbatti Problem Identification
Fig.11 SHG Problem Identification
5

Abbreviation
ITC Indian Tobacco Company
CSR Corporate Social Responsibility
SHG Self Help Group
MSK Micro Finance
P1 Project SHG
P2 Non-Project SHG
SEWA Self Employed Women Association
NGO Non Governmental Organization
SUSSSL SEWA Udyogic Swablambi Sahkari Samiti Limited
SEIA Socio Economic Impact Assessment
WE Women Empowerment
6

Chapter 1: Project Introduction
The Project Sunhera kal intends to empower people and communities in the
rural India developing natural resources and generating employment by
focusing towards sustainable community development. With various sub
projects under the umbrella project Sunehra kal aims to create capacities and
assets particularly empowering women to return community to the path of
sustainable economic and social development of the community.
With this objective ITC under its Corporate Social Responsibility has
successfully launched the Women Empowerment project in Munger district of
Bihar under mission Sunhera Kal in 2004. Whereby ITC aims to generate
employment and engage local women in the Agarbatti rolling activity in order
to empower these communities making them economically stronger so that they
are able to return communities to the path of economic growth and social
vibrancy. In Munger district, agarbatti making has emerged as a thriving home
based income generating activities.
ITC aims to bring about the sustainable economic opportunities to poor rural
women by mobilising these local women to form Self help groups, helping
them to save and engage themselves in other income generating activities.
With ITC’s support, SEWA Bharat provides raw materials and trains them to
roll agarbattis to specified standards. Then the raw materials are collected by
individuals rollers to a network of collection centres located in the three areas in
the district namely mai, Fauzdari Bazar and Phulkia centres. These centres are
also responsible for sorting Aggarbttis according to the ITC quality parameters.
These are further assessed by experienced rollers to maintain strict quality
control before onward dispatch to the scenting unit were the Agarbattis are
further collected, scented and packaged for further afield.
Earning between Rs.600 –2,000 a month, there is a new confidence among the
744 women actively engaged in Agarbatti rolling. With a steady income and
savings they are in a position to support their families financially. Coming
together to form Self-help groups, equipped with skills to manage their own
finances, women are growing economically and socially more stronger and
stepping forward to catalyse change within the communities.
7

Research Background:
The need of the hour is to diversify rural livelihoods. Towards this end, ITC has
forged an empowering partnership with rural women – the most effective
development workers. ITC’s intervention leverages micro-credit and Agarbatti
rolling to generate alternate employment opportunities. Increased income in the
hands of rural women means better nutrition, health care and education for their
children. The Women Empowerment Program currently has over 300 SHG’s
with over 3000 members. It has created over 11,000 livelihoods till date.
Brief description of the Project Activities:
The activities under the project are described in the diagram. The activities
under the Women
Empowerment Project
include Hand Rolling,
Machine
Roll
Machine Rolling, Dust
Rolling and Packaging of
ITC Mangaldeep
Hand Roll
Agarbattti. The project
activities also include
creation of Successful Self
Help Group in the project
intervention area.
There are more than 500
women employed in the hand rolling of Agarbatti, 60 women each in the
machine and dust roll process and 44 women engaged in packaging of
Mangaldeep Agarbatti. A total of 72 SHG formations has been done till date in
the project area. The ITC discharge its social responsibility activities efficiently
by linking its project to various national and state NGO’s. The various NGO
linked with the Project are SEWA, IGS, VIDS and Disha Vihar. The project has
proved to be as the change agent and has been successful in transforming the
lives of the women in Munger district of Bihar. Thus the project aims to uplift
the social and economic condition of the women in the society. The project not
only helps in generating employment opportunities locally but also making the
women socially and economically stronger.
8
Project:
Women
Empowerment
Dust Roll
Packaging
Unit
Self Help
Group

Chapter 2:
Research objective:
1. The main objective of the project is to develop in depth understanding the
efforts made by ITC in discharging Social responsibility through its Women
Empowerment project in Munger
2. To identify and assess the Socio-Economic impact of the project
3. To study the structure, conduct and performance of SHGs promoted under
9
the project
4. To increase the awareness level of participating community for sustainable
self-help development
Purpose and Goal of the study:
1. Assessing the socio-economic impact on the women who are a part of the
SHG’s.
2. Analyze factors that impact the production of Agarbatti in the different
groups
3. Level of efficacy of project SHGs compared with respect to. book
maintenance, internal lending, regular savings, external loan mobilization
and repayment
4. Comparison of project SHGs with non-project SHGs for all the above
parameters
5. Understand the perception of the women on the loans provided by the
project- if any perceived benefits
Research Question:
1. Is ITC able to discharge social responsibility effectively under its women
empowerment project?
2. What are the social and economic benefits of the project?
3. How successful is the project in terms of creating Socio-Economic Impact
in the intervention area?
4. Is the project able to generate social and economic empowerment of the
women as a whole?

Chapter 3:
Research Methodology:
This paper helps to analyse the socio-economic impact and to assess whether
the project has been able to achieve its basic objective (whether the social and
economic empowerment of women increases their overall empowerment
automatically).
The study Design: This was a comparative social diagnosis study exploratory
in nature. Focus Group Discussions were held at all the SHG level to
supplement the quantitative data, collected through interview schedules. The
women engaged in the Agarbatti making were also part of the semi-structured
interview to assess the socio-Economic Impact Assessment of the Women
Empowerment Project under ITC as a part of its Corporate Social
Responsibility. A few case studies are also included in the study to highlight the
level of empowerment of women achieved in different aspects of the study
Participatory Assessment Method: The Participatory Assessment
methodologies such as participatory rural appraisal and Beneficiary
Assessment, Survey and the FGD’ were the part of the method. These
methodologies provide linkage with the local people in analysis and planning
and can contribution to the development of action plans and participation
strategies. (For survey questionnaire refer annexure 1)
Workshop Based Method: Regular stakeholder meeting and workshop were
conducted to assess the issues in the project. Regular meeting with the NGO’s
engaged with the project.
Methods and Tools of data collection:
1. Pre-tested Interview schedule was used for primary data collection from
10
members of the SHGs
2. Semi structured FGD guide was used to collect relevant data from the
Leaders of SHG and their federations to supplement the quantitative data
3. Case Studies for highlighting the achievements of some SHGs in women
empowerment
4. Semi-structured interview with the women engaged in the Agarbatii rolling
5. Observation schedule used for Personal Observation

The Sampling Method
Multi-stage, simple random sampling method was used for the study at various
levels. (Refer annexure 2)
Stage 1: At this stage, selection of a region was done with geographical
stratification. For the purpose of this study, the Munger district was stratified
into two areas, namely Urban and Rural Area
Stage 2: At the second stage, sampling was done for selection of the NGOs
engaged with the project in the Munger district of Bihar. The list of prominent
and reputed NGOs with good track record, and having sufficient experience in
promoting SHG system and Agarbatti making Activity was gathered with the
help of ITC. Simple random sampling method was used for the selection of a
NGO engaged in the project.
Stage 3: At the third stage, selection of 50 SHGs from the selected NGO was
done using simple random sampling. Thus, a total of 40 SHGs were selected
from as Project SHG and Non- Project SHG were identified. A total of 20
projects SHG and 20 non-projects SHG were classified.
Stage 4: At the last and final stage, the total of 593 members of SHG’s was
selected for the study of SHG. A total of 278 and 315 members of project and
non-project SHG were interviewed respectively.
Sources of Data:
The source of primary data was from the 593 respondents from 40 SHGs of the
1 NGO engaged in women Empowerment Project in Munger.
The Secondary data were gathered from reports, minutes of the meetings,
attendance register, and accounts registers, other relevant documents and
register maintained by the SHGs under the NGO named SEWA.
11

Sample Size:
Table 1: Sample Frame for the SHG Study
Sampling : Multi stage Random sampling
Total SHG Surveyed : 50 Groups
12
1. Cluster 1 Urban Area:
Project :
Non- Project :
22 Groups
10 Groups
12 Groups
2. Cluster 2 Rural Area:
Project SHG :
Non-Project SHG:
28 Groups
20 Groups
8 groups
Project SHG:
Member :
30 Group
337 Member
Non-Project SHG :
Member :
20 Group
315 Member
Total no. women engaged in the
project:
Total women not engaged in the
project:
337 Women
315 women
Sample Study: N= 20 Project SHG
274 Women
Sample study: N= 20 Non project SHG
315 Women
Table 2: Sample Frame for Project Impact Assessment
Project SHG member 337
Agarbatti Making Hand roll: 70
Machine Roll: 30
Sorting Unit: 34
Scenting Unit :44
Godown: 2
Total Women: 180
Total Women Engaged in the project 337 + 180 = 517 Women

Table 3: Stratification of the Sample according to Model and size of SHGs
group per member
13
Category/
Group
member
Project SHG
group
Non- Project
SHG Group
Project SHG
Member
Non-Project
SHG
member
9 1 0 9 0
10 1 1 10 10
11 1 0 11 0
12 3 2 36 24
13 4 3 52 39
14 2 0 28 0
15 2 2 30 30
16 3 3 48 48
17 1 3 17 51
18 1 1 18 18
19 1 5 19 95
Total 20 20 278 315
Data collection procedure
Based on the objective of the study an interview questionnaire was prepared.
The total of 50 SHG was interviewed and surveyed against the 40 SHG’s. That
is 10 SHG’s were pre-tested in the study area on 8 project SHG’s and 2 project
Non-SHG’s. Later on the remaining 20 project and 20 non-projects SHG’s were
interviewed. Based on the experience gained during pre-testing necessary
correction and modification were done especially to ensure that the instruction
and question were clear and unambiguous. The final step of data compilation
was used to collect information regarding the various factors and analyse them
in order to assess the efficacy of the project and non-project SHG.
Limitations of the study
The present study was undertaken as part of the requirement of the post
graduate programme of the student’s research, so there were constraints of time
and other resources and therefore some issues could not be explored in greater
depth in a comprehensive manner.
Also, only women self-help groups and the Agarbatti rollers were taken into
consideration for the study. Therefore, the findings cannot be generalized for all
types of SHGs and locations. Data availability and data filtration are the major
constraint of the study.

Chapter 4: Statistical Analysis
The Chapter comprises of Structure and Performance of the
Project Self Help Group. The other part of the chapter
include Comparative Analysis in order to measure efficacy
of Project SHG Vs Non-Project SHG’s. The Sources of data
used for the Statistical Analysis are Primary Data and Co-ordinating
NGO Record book. These data are further useful
to carry out the impact assessment of the Project.
14

Structure, Conduct and Performance of Project SHGs
1. Formation of SHG in the intervention area:
The SHG were formed in the project intervention area with the help of
NGO’s whereby the NGO’s were expected to motivate rural people to
organize themselves to form into Sel Help Group at village level. The other
factor was to educate, train the group member in managing the group
activities like maintenance books of accounts conducting meetings and
management of the records etc. Apart from this SEWA are also try to
inculcate, promote and thrift and saving habits among the group members
and to help in the institution building along with the development of
individual. During the process SEWA also helped in identifying local
resources and boost other income generating activities in the project
intervention area by upgrading their skills and imparting the training of
Agarbatti hand rolling and machine rolling to make best use of resources.
Apart from this SEWA also helps in availing credit facilities and to act the
link between rural poor and the bank. The other factor was to educate the
group member and train group members to utilize the credit properly and to
improve their economic conditions. SEWA also act as a facilitator in the
meeting of the project SHG.
2. Structure: This part gives us the details of the various group formations of
15
the project and non-Project SHG.
Year of formation Project SHG Non-project SHG
2003 4 -
2004 2 -
2005 4 -
2006 2 -
2007 1 -
2008 5 -
2009 10 -
2010 2 12
2011 - 7
2012 - 1
Total 28 22
Table 4: Structure of SHG

The project SHG was formed with the help of ITC support in the year
2003.The above given table describes the project and non-project SHG
facilitated by the NGO SEWA.
Thus the total of 20 SHG from project SHG and the total of 20 non-projects
SHG running in the intervention area was chosen for the comparative
analysis to measure the level of efficacy of the SHG’s in the project area.
3. Factors Motivating SHG’s in the intervention area: In order to study the
factors which motivated the women to form self help group were studied
based on the nine broad parameters. These parameters were further
compared to the existing bank in the district and the money lender. These
parameters helped us to identify why SHG’s are gaining edge over bank and
money lenders. Te table below shows the comparison of SHG with the bank
and money lenders to show how the women are more and more engaging
themselves and are ready to form SHG’s.
Table 5: An analysis of factors Responsible for SHG formation
Parameter Money Lender Bank SHG
Ease of access High low Very high
Transition cost of access low high Very low
Lead time for loan short Long Very short
Repayment time Fixed/rigid Fixed/easy Fixed/flexibility
Interest rate Exorbitantly high
16
(10%)
Low/affordabl
e/ subsidized
Reasonable/
affordable (2%)
Repeat borrowing possible Possible/not
likely
Dependable(
Previous loan
/savings)
Loan access procedure Very quick Time
Consuming
Easy/quick
Loan application
procedure
informal Complex Formal
Demand promissory note Mandatory Required Not required

In terms of accessibility the SHG has proved to be very high because of its
formation and member residence in the same area. Therefore due to its easy
accessibility the transaction cost required to save and withdraw from the
bank is very low or almost nil in compared to bank and the money lender.
The time taken to give loan is also minimum because the loan is given to
the member required in the each monthly meeting of the SHG’s, all is
required is the permission of the respective members of the SHG’s.
The loan repayment time of the SHG’s are fixed for 10 months with the
reasonable interest rate of 2 percent on the remaining principle amount of
each month, if the member is not able to repay within these 10 months then
he will be counted as the defaulter and the interest rate will be doubled to 4
% which is still comparatively lower than the interest rate charged by the
bank and the money lender.
The member is flexible to avail for the repeat borrowing given that he has
paid the previous loan and the loan amount must be less than the amount the
member is seeking to avail. The loan access procedure is formal and very
quick in comparison to the Bank and Money Lender.
Therefore with low rate of interest and flexibility in savings the SHG has
gain significance importance in the project intervention area.
17

Economic Performance of the Project Vs Non-Project SHG:
1. Savings in bank as on April 2012: The table below shows the number of
SHG savings in bank according to the category project and non project
wise. Where P1 indicate the project SHG and P2 indicate Non-project SHG.
Table 6: Savings on bank
Savings Project SHG (P1) % Non Project
18
SHG (P2)
%
0- Rs 5000
9 45 10 50
Rs 5100-10000 3 15 2 10
Rs 10,100- 15,000 5 25 4 20
Rs 15,100- 20,000 2 10 1 5
Rs 20,100-25,000 1 5 2 10
Rs 25,100-30,000 0 0 1 5
Total 20 100 % 20 100
%
Source: Primary data
It was observed that majority of the project and non project SHG were having
saving less than Rs. 5000. Were 50% of Project SHG and 45 % of Non-Project
SHG have savings below Rs. 5000 but adding to the credibility of project SHG
about 15% of the women have
saving between Rs 5000 to
10,000 whereas only 10% of the
45
non project SHG has the saving
between 5,000 to 10,000 Rupees.
10 % of Project SHG has saving
Between 20,000 to 25,000
Rupees. This shows that the
project SHG has the capacity to
save more given that the
members are regular in their
monthly savings.
Saving in Bank / SHG
15
25
10
5
0
50
10
20
5
10
5
60
50
40
30
20
10
0
% of member
Savings in Rupees
P1
P2

2. Savings in bank per member as on April 2012:
The table below shows the Savings per member in the bank of project as
well as non- Project SHG.
Table 7: Saving in bank per member
Source: SEWA Record Book and Primary data
When we compare the per member savings in bank of the project as well as
non-project SHG the project SHG is again in the better off position with its
member having in all the categories again showing its capacity to save even the
lowest possible value. With 22% of project SHG ha its savings between Rupees
3000 to 5000 against the non-project SHG which has its saving between 100 to
3000 Rupees only.
Saving/Member
Source: SEWA Record Book and Primary Data
19
Savings
(In Rupees)
Project SHG
(P1 ) Frequency
%
Non -Project
SHG
(P2) Frequency
%
Rs 100-1000 52 18.98% 61 19.18%
Rs 1100- 2000 122 44.53% 176 55.35 %
Rs 2100- 3000 39 14.23% 78 25.47 %
Rs 3100- 4000 45 16.42 % 0 0.00 %
Rs 4100-5000 15 5.47 % 0 0.00%
> Rs5000 1 0.36 % 0 0.00%
Total 274 100 % 315 100 %
60.00%
40.00%
20.00%
0.00%
Rs 100-
1000
Rs 1100-
2000
Rs 2100-
3000
Rs 3100-
4000
Rs 4100-
5000
> Rs 5000
% women women
Savings in Rupees
P1
P2

3. Loan Operation as on April 2012 :
This part shows the economic performance of the SHG’s in terms of loans
availed by members, loan per member dispatched and the defaulters, assessing
the number of members not able to repay on time.
Table 8: Loan Operation
Variables
Project SHG (P1) Non-Project SHG (P2)
Total members
274 315
Total loan
194 159
Loan / Member
144 151
Defaulter
89 45
Source: SEWA Record Book & Primary Data
In project SHG the total of 274 members were able to save and dispatch loans
to 194 members, where as in non-project SHG the total of 315 members were
able to dispatch loan to 159 members in the group. But the defaulter’s rate as in
the number of member not able to repay the loan in project SHG is high. 89
Project SHG members not able to pay on time because of the low saving
mechanism and less engaged in income generating activities.
350
300
250
200
150
100
50
Loan Repayment
Source: SEWA Record Book and Primary Data
20
274
194
144
89
315
159 151
45
0
Total members Total loan Loan / Member Defaulter
No. of member
factor
Project
SHG (P1)
Non-
Project
SHG (P2)

4. Loan Repayment: This factor will help us assess how many members are
defaulters. Under this category each defaulters are divided in accordance
with the month due for repayment. The above table help us to explain the
defaulters and non-defaulters in the studied SHG in the intervention area.
Whereby the defaulters percentage is 32.48 % in project SHG as compared
against 14.28 % in the Non-Project SHG.
Table 9: Loan Repayment by SHG
Total defaulters
21
Loan Repayment Project
P1
% Non project
P2
%
0-5M 34 12.40% 23 7.30%
6M-10M 22 8.02 % 21 6.66%
11M-15M 11 4.01 % 1 0.31%
16M-20M 12 4.37 % 0 0
> 20 M 10 3.64 % 0 0
Total Defaulters 89 32.48 % 45 14.28 %
Non- Defaulters 185 67.52% 270 85.72 %
Total Members 274 100% 315 100%
Source: Primary data
The total defaulter’s percentage of defaulters in initial period of loan is high
both in case of project and Non project SHG. The project SHG Defaulters
ranges from five months to more than 20 months. The Non project defaulters
are less because of its linkage with various other income generating activities.
8.02919708
4.01459854
4.379562044
3.649635036
6.666666667
0.317460317 0 0
9
8
7
6
5
4
3
2
1
0
6M-10M 11M-15M 16M-20M > 20 M
% P1
% P2

22
5. Loan Utilization:
The SHG generate a common fund out of small savings, which they invest
in productive activities as in other income generating activities. The funds
generated are also used as giving loans to the members of the groups. Such
loans include consumption loans and production loans. Consumption loans
are used for household purposes and production loan are used for other
income generating activities and small business.
In the present Study , the information on fund utilized for different purposes
like health, education, consumption, house construction, small business etc
by the members of the SHG were elicited. The required data was collected
by the respondents as well as the book records maintained by each SHG and
finally frequency and percentage was calculated.
In this study the loans availed by various aspects were covered, the number
of members availed loans and the total loans disbursed by the SHG was
covered by seeing their records. Kinds of loans disbursed by SHG for
various purposes like agriculture, Social Function and small business were
recorded for group data.

Meeting/SHG
Saving Contribution
23
6. Level of Efficacy
Regularity in Meeting: As per the Guidelines the group meets every weekly
for general meetings and monthly meetings for savings collection and
repayments of loans. Group meetings are supposed to be conducted with the
certain discipline in relation to regularity and time. The data hereby has been
obtained from interviewing open end questionnaire and then the percentage was
calculated for the whole sample. The chart below shows that the project SHG is
more efficient in terms of organizing and conducting meetings as per scheduled.
25
150
100
50
Source: Primary Data
Regularity in Savings: In the present study saving habits of SHG’s refers to
the total group savings of SHG member in the given date. This information was
sought by asking the respondents directly during the SHG meeting of April and
also by seeing their record maintenance for the period of April 2012.Again the
savings per member as on fixed date is comparatively higher than the non-project
SHG’s were the saving per person percentage is 74.92. Thus the person
miss out the saving is 12.4 % against the 25.97 % of non-project SHG.
100
50
50
100
0 0
100
0
Weekly Fortnightly Monthly
% of Member
Schedule meeting
P1
P2
87.59
74.921
12.4
25.979
0
P1 P2
% OF MEMBER
Project/Non-Project SHG
Fixed
date
Skip

Attendance: According to the study conducted in the Munger District of
project and non-project SHG. There were 80 % attendance reported by the
project SHG and were as non project SHG has the 50% attendance as on april
2012. It was reported that regularity in attending meetings and saving habits
was a disciplinary measures in Project SHG’s. Whereas 20 % of non-project
SHG reported attendance below 25 %
80
100
80
60
40
20
Attandance /SHG
Loan Repayment: The repayment rate was calculated with the help of the
review of record book of each SHG’s maintained by each SHG as well as the
facilitated NGO named SEWA. The percentage of project SHG not able to pay
loan within 10 months was as high as 32.48 % as against 14.28 % of defaulters
in the non-project SHG’s. Whereas the percentage of member not included in
the defaulters list is 15 % for project SHG’s as against 4.76 % of non-defaulters
out of total sample.
Loan Repayment
24
35
30
25
20
15
10
5
20
0
50
30
20
0
100-75 50-75 < 25
% of womn
% present
P1
P2
32.48
15.32 14.28
4.76
0
P1 P2
% OF MEMBER
Project/Non-Project SHG
Defaulters
Non-
Defaulters

25
Bank Transaction:
Majority of the members had experienced bank transaction. In the project
SHG majority of the members have visited the bank for the purpose of
saving the monthly amount collected and/or to withdraw the total sum to be
given as loan to the member of the related SHG.
Similarly in the non-project SHG the bank transaction i.e. the withdrawal
and saving is being dominated by one or two members in the SHG group.
Decision making pattern:
In the Project SHG there was democratic type of decision making pattern
followed by the non-project SHG groups which more often consider one or
two member in the group while taking decisions and other would follow.
In project SHG, cent percent groups were considered while taking decision
all members were consulted.
In non-project SHG majority of the groups are not considering all the
members’ decisions and minor percentage of group were consulting all the
members while taking decision.
Loan availability:
In this study, the loans availed for various aspects were covered and
described earlier. The Loan availability as described earlier under the
economic performance of SHG’s also help us to assess the effectiveness of
the SHG in terms of the fund availability and its utilization by the SHG
members.
Record maintenance:
All the SHG i.e. both the project and non-project SHG were maintaining
records in the systematic manner. The records were either maintained by the
literate member in the group or the president of the group or the concerned
NGO. The study also recorded that maintenance of records, group leaders
were playing a major role because the other members have faith in the
group leader or in some group it was recorded that the members avoid
taking responsibility as well.

Table 10: Level of efficacy of Project Vs Non Project SHG
Level of Efficacy of SHG's (March/April 2012)
SL.No Particulars P1 P2
frequency % frequency %
26
1 Meeting
Weekly 5 25 0 0
Fortnightly 10 50 0 0
Monthly 20 100 20 100
2 Attendance
100-75% 16 80 10 50
50-75 % 4 20 6 30
< 25 % 0 0 4 20
3 Contribution of saving
Fixed date 240 87.59124 236 74.921
Skip 34 12.40876 79 25.079
4 Loan Repayment
Defaulters 89 32.48175 45 14.286
Non-Defaulters 42 15.32847 15 4.7619
5 Writing of group record
Member YES _ _ _
Patner NGO YES _ YES _
6 Bank transaction
All member transacted NO _ NO _
Majority YES _ _ _
Few /single _ _ YES _
7 Decision making pattern
All the members have
say
YES _ NO _
Domination by 1 or 2
members
NO _ YES _
8 Loan availability
Very good YES _ _ _
Good _ _ YES _
Bad _ _ _ _
9 Record maintenance
Well maintained YES _ _ _
Moderately maintained _ _ YES _
Not well maintained _ _ _ _
10 Income generating
activities
YES _ YES

Chapter 4:
Socio-economic Impact Assessment
The Chapter gives us the final Findings and research
outcome. The chapter consist of the scoping matrix and
Beneficiary Assessment which is used measure the Project
impact qualitatively. It includes brief findings about the
microfinance and Agarbatti Project. The chapter also
discusses the challenges of the project ahead. It also
focuses on the case studies to illustrate the success of the
Women Empowerment Project.
27

Common Questions arising while conducting Socio- Economic Assessment
28
Who are the stakeholders?
Are project objectives
consistent with their needs,
interests, and capacity?
What social and Economic factors
affect the beneficiaries or benefit
from the proposed policy or
project?
What social risks might affect
project or program success?
What is the impact of the
project or program on the
various stakeholders,
particularly women and
vulnerable groups?
Are there adequate plans to
build the capacity required at
the appropriate levels?

Why Socio-Economic Impact Assessment (SEIA)?
Socio-economic impact assessment (SEIA) is a useful tool to help us
understand the potential range of impacts of a project activity on the
intervention area, and the likely responses of those impacted if the change
occurs. It is used in order to assess impacts of a wide range of types of change
recorded due to project intervention. This understanding can further help the
stakeholders to design impact mitigation strategies to minimise negative and
maximise positive impacts of any change.
It is important to determine not only the full range of impacts, such as changes
to levels of income and employment, access to services, quality of life, but also
the implications of each particular change. Impacts of a project are also distinct
from, though influenced by, other activities which may be occurring under the
same project. It is important therefore to identify the key source of impact and
to separately identify impacts arising from other sources.
While social impact assessment and economic impact assessment are often
undertaken separately and employ specific methods, they are complementary
and sometimes overlap. For example, in the women empowerment project
social assessment may examine demographic change; however an economic
assessment may place emphasis on workforce information while a social
assessment may also be interested in population change.
An integrated approach can provide a comprehensive and cost effective
outcome, providing information on potential economic impacts as well as
important social values attached to the activity which inform likely attitudes
and responses to the proposed change.
29

Scoping matrix
The ‘scoping’ phase establishes the goals and boundaries of the assessment and
focuses the SEIA on key impacts. The scoping stage also considers the level of
community participation or involvement in the SEIA. The socio-economic
activities thus identified during beneficiary assessment is used to construct the
matrix of activities by area will be done together with list of specific activities
included under the project. Shortened versions of some of the activity headings
are used in the matrix itself. Many of the activities listed lead to additional
knock-on socio-economic benefits. The purpose of this report to analyse the
activities under the project in detail and to provide an overview of the types of
activities directly linked to the socio-economic development of the women of
the areas listed. The detailed Scoping matrix is attached in the annexure 5 of
the report.
The matrix therefore is divided into project activities on the Y-axis and the
Socio-economic factors on the X-axis. The S-E factor is further divided into 4
areas comprising of social status, social Infrastructure, economic Factors and
others. The factors will be judged on the basis of 5 rating scale comprises of
positive, medium, low, negligible and negative impact. There are 15 identified
areas under the project activities and a total of 31 factors to be judged under the
rating scale of 5.
This will help us to identify qualitatively as were the project has impacted
positively and negatively. It will further help us to identify and assess the risk
involved in the project as well. The project shows a positive impact on the
employment generation, income level, expenditure on consumption of food,
saving, lending, asset creation and debt reduction and capacity building. As far
as social factor was considered it record a medium impact on the women in
terms of equity and equality. Low impact was recorded in the areas of social
mobility, willingness to work and motivation factor of the women engaged in
hand roll. The risk hereby lies in the negative impact on the project is the self
purchase model under the hand roll activity, whereby women are not interested
in the purchase of raw material by themselves and feel that it will indirectly
affect their wage
30

Findings: Project Self Help Group
1. Structure and conduct of SHGs especially with reference to size,
homogeneity, conduct and attendance of meetings, record keeping, etc.,
was broadly in conformity with the guideline of the programme.
2. Varied saving products that are suitable for the rural poor were made
available for the SHG members that facilitated increased rate of saving
among them.
3. Institutional credit deepening and widening among the rural poor were
31
achieved to a greater extent.
4. Availing loans from moneylenders and other informal sources with
higher interest rate was significantly reduced due to SHG intervention.
5. There is perceptible change in the loaning pattern.
6. Consumption oriented loans were replaced by production oriented loans
during post SHG situations which was mainly due to SHGs and training
provided under the SBL programme
7. The incremental income was contributed mainly from farm activities
followed by nonfarm activities.
8. Employment per sample household increased between pre and post-
SHG situations.
9. There was remarkable improvement in social empowerment of SHG
members in terms of self-confidence, involvement in decision-making,
better communication, etc.
10. NGO promoted groups edge over BANK promoted groups on targeting
weaker sections spreading SBL programme more in inaccessible areas,

improvement in assets, savings, income and employment generations,
capacity building and human resource development, etc. SHPI groups
performed relatively more in institutional loan repayment. There is
greater scope for BANK groups for improving the conduct of SHGs and
capacity building of its members.
11. Sustainability of SHGs was well established through the better
performance of older groups than the recently formed groups in terms of
increased value of assets and saving rate, better access of institutional
loans,
12. higher rate of repayment of loans, elimination of informal sources and
impressive social empowerment.
13. For greater acceleration of rate of economic empowerment, future
strategy must focus more and more on training and capacity building of
members besides ensuring adequate linkage supports.
14. SHGs’ role may further be enhanced through its involvement in
developmental programmes implemented in the areas.
15. While expanding the programme for wider coverage, efforts also need
to be focused on strengthening the existing groups and institutional
building such as federal structures.
16. Sustainability of SHGs was well established through the better
32
performance of SHG group
17. Project Activity focus more on training and capacity building of
members engaged in the project.

18. Self help group help in accelerating more income generating activities
446
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
33
in the intervention area.
Findings: Agarbatti Project
1. Members:
The average number of members involved in rolling of Agarbatti did
increase after the registration of cooperative, however, since 2008 it has
began decreasing. This trend was reversed in the year 2011-2012 and there
was 42 % increase from previous year.
463
700
600
500
400
300
200
100
0
Source: SEWA record
2. Production:
615
317
452
The increase in production was of 24 % in the year 2011-2012. A
significant increase in productivity by 36% was also seen in 2008-2009.
Hence the production has marginally increased in 2011-2012.
no. of women
Year
81216
110458 111926
97942
121611
140000
120000
100000
80000
60000
40000
20000
0
2007-08 2008-09 2009-10 2010-11 2011-12

34
Source: SEWA record book
3. Employment Generation: The project has helped to develop skills and
generate employment in the district. There is total of 576 women engaged in
the hand roll activity of the project under the NGO SEWA. There are
additional 11 field workers and 4 centres in charge under the activity which
are responsible for carrying out day to day activity such as distributing raw
materials as well as payment of the Agarbatti rollers.
4. Capacity Building: To develop the organizing and leadership ability of
women workers in order to build their own organizations. The focus on
building capacity of members is paramount so that they are able to run,
control and manage their own organisation. Currently there are 14 members
in Board of co-operative, 12 out of this are roller members or SEWA Sathi
(who have risen from roller member to this level). The average number of
years spent by these members in board has been 4 years. Krishnaben,
Sulochanaben and shyamaben who were plagued by social stigmas, family
responsibilities and poverty had joined SEWA to earn enough to get two
decent meals per day for their children. Later, through their sheer
determination, they were in charge of the Agarbatti centre, rose to the level
of SEWA Sathis. Krishnaben has been the president of the board since 6
years. The board meetings are held consistently every two month and work
plans and achievement are discussed. The project has helped help women in
capital formation at the house hold level through access to financial services
in order to build up and create assets of their own (land, house, work shed,
equipment, cattle, savings, micro- insurance etc.
5. Health Facility: To develop institutional capacity in order to deliver social
security programs (e.g. health and child care) for women workers and
improve their ability to use these projects. Under the ITC MSK project
health care activities like health camps, referrals are undertaken of members
were linked to health activities. In addition to this SEWA services are
provided to members. Members have been linked to micro-pension and
micro insurance schemes. Government schemes through pensions, women
and child welfare schemes are provided.

Table 11: Beneficiary Assessment
Beneficiary Assessment
1 Employment Generation: Total Women Benefited
Hand Roll 576
Machine Roll 60
Dust Roll 36
Sorting Unit 34
Scenting Unit 42
35
2 Saving
Total HG 30
Member 337
Agarbatti 20
3 Livelihood
Agarbatti 744
SHG/member Loan 20
4 Health Facility
Agarbatti 748 (Free Camps)
SHG 27 ( Loans)
5 Poverty Reduction
Agarbatti 744 (Incremental Change)
SHG 337
6 Food Security Change in Consumption Habits
7 Education Improvement in enrolment rate
8 Standard of living Improvement in living conditions
9 Capacity Building Skill Development
10 Social Empowerment Reported Positive Change

11 Economic Empowerment Reported Positive Change
Fig 9: Socio-Economic Impact Assessment in the Nutshell
36
Employment
=
732 Women
Women
Empowerment =
Sustainable
Community
Development
Saving=
337 Women
Livelihood =
1069 Women
Health Facility =
732 Women
337 SHG Member
Poverty
Reduction =
1069 Families
Food Security
=1069 Families
Improved
Living
Conditions
Education =
Significant
Improvement in
the enrolment
rate
Skill
Development

The Logic Model: Impact Value Chain of Project
The Logic Model process is a tool that will tend to describe the effectiveness of
the project. The model describes logical linkages among program resources,
activities, outputs, audiences, and short-, intermediate-, and long-term outcomes
related to a specific problem or situation. Once a program has been described in
terms of the logic model, critical measures of performance can be identified.
Logic models are narrative or graphical depictions of processes in real life that
communicate the underlying assumptions upon which the project activities are
expected to lead to a specific result. Logic models illustrate a sequence of
cause-and-effect relationships—a systems approach to communicate the path
toward a desired result.
If we see the fig.10 it clearly shows the input of the project in terms of physical
and financial resources used in the project. It also describes the various
activities under the project.
The output of the project is measured in terms of women empowerment. The
total number of women employed in the project activities. The efficacy of the
Agarbatti and Microfinance Project is the direct output of the project. The skill
development and health facility also covers the project output.
The Outcome of the project involves the social and economic benefit of the
project. The social benefit of the project involves Appreciation of the women
by family members and increased participation of the women in decision
making and other voluntary organizations. The economic benefit includes
wages and other income generating activities to the women of the village.
The indirect benefit because of the project involves better standard of living,
improved housing condition and education, overall poverty reduction and
increase in the consumption level and job creation in the villages. Above all the
project also focuses on improving the health conditions of the women involved
in the project.
37

Therefore the target object of sustained business and sustainable community
development has been achieved and is able to make a positive impact as far as
Women Empowerment is concerned in the Munger District of Bihar.
38

Fig 10: Impact Value Chain of the project
39

WOMEN EMPOWERMENT: ‘Case Studies of Women and their life in the
challenging world’
Often in the lives of the women in Munger District in Bihar, an economic
crisis due to sudden loss of job by the income earner or serious sickness or
death can ignite off a positive change in their lives which deprives their family
of its means of subsistence, increased needs or demands by the children, the
imperative of raising family income to keep the children at school, or many
other causes. Such situation often leads the solitary wife to surpass herself in
order to ensure the family's wellbeing. Here comes the intervention from the
ITC Ltd. Corporate Social Responsibility, Women Empowerment Project
which helps its beneficiaries understand that they can earn a regular income and
hold their heads high in the society.
Case 1: Many women in the district dream of improving their family Socio-
Economic conditions and setting their children on a path to a better life through
school, and even university which they never dreamed of for themselves. Such
is the case of Sabita Gupta who is engaged with the project since 2003.She was
earlier engaged with the hand rolling of Agarbatti and is currently working as
an employee in the Scenting Unit and is an active member of ITC-SEWA Self
Help Group. Her husband being a daily wage labourer couldn’t afford to send
her son for higher studies, but ITC has helped her earn a regular source of
income to sustain in the challenging world and help her fulfil her dream of
sending her son in an engineering college in Ambala.
Case 2: Earning and managing income is the crucial point for women
empowerment for it facilitates women to learn to handle cash, the family budget
and manage debt. Such is the story of Garima who is working in the Scenting
Unit since December 2011. Since 2 Years she is an active member of ITC-SEWA
Self Help Group which has also given her prospect to earn on one side
and simultaneously save on the other side. This regular flow of income and
saving mechanism has made her self-dependent which also made her capable of
financing her own marriage. This has able to build self-confidence in her that
she would be able to help her family whenever needed.
40

Case 3: Other factors of empowerment include keeping children, especially
daughters, at school, which prepares the way for early empowerment of female
in the society. Such is the story of Mrs. Kiran Devi from Puraniganj, Munger
District in Bihar. Mrs Kiran Devi is blessed to have 2 daughters one in 1oth and
other in 12th grade and wish to send them for higher education. She started
agarbatti rolling 3 years ago and earns Rs 2000 per month. With the regular
source of income she is able to send her children to schools and cover their
educational expenses.
Case 4: It is generally the woman who is able to save money, usually unknown
to her husband to buy some assets for the family with the support of her
husband. But here is the case of Mrs Bishnu who has three children and a
paralysed husband to take care of their medicine, educational expenses and
household expenditure. Being unemployed had made her life more difficult till
a year before she joined Scenting Unit as a full time employee and has a regular
source of income over the year. ITC has given her willingness to earn and
improve their family condition in terms of health and education.
Case 5: Mrs Premlata Devi has 3 children but the husband is unemployed. This
situation was a huge challenge for her to sustain herself and her family in the
period of financial constraint. She is a regular employee of scenting Unit and
earns a regular source of income to support her family financially. Being the
only breadwinner in the family is a huge challenge for her but ITC has made
her life much easier by employing her and helping her earn regular income and
save money for contingency as well. Now she can successfully in a position to
meet the basic necessities of the family.
Case 6: ‘Financial autonomy brings with it dignity’. Mrs. Renu Devi tends to
prove the proverb accurate when it comes to empowering women in the society.
She preferred to stay on the four walls of the houses unless one day she
encountered herself the Agarbatti rolling women in her village. She started her
journey with Agarbatti rolling 5 years ago and earning Rs 500 to 600 per
month. Now she is a permanent employee in Scenting Unit since 2 years and
earns Rs 2000. The case shows that her earning capacity keeps on increasing
with the regular support of ITC. She also mentioned that she loves the working
41

environment and foster high willingness to work as it builds self-confidence in
her.
Case 7: Neelam is an employee of Scenting Unit since last year. She is engaged
in the Agarbatti rolling activity since 9 years. In order to support her family
financially and able to help her four children attain good quality education she
started rolling Agarbatti. To be able to save money for her future she is also an
active member of ITC-SEWA Self Help Group, which has helped her
continuously in terms of loan availability during contingency. This helps her to
maintain small savings and avail loan whenever needed. The project has helped
her to improve the well-being of the family as well.
Case 8: Suletha kumari is in her early twenties and engaged with the project
since few years and earns on an average of Rs 1000 per month. The amount
earned helps her to pay her tuition fees and simultaneously save it for her
marriage. She not only feels independent but also motivated to grow higher in
life. She is also in a position to help her family by supporting them financially.
She says she is no more a burden to a family especially were in rural areas girl
child has to struggle, She is able to earn and make best out of her earnings.
Case 9: Mrs Kanchan is one among the few women who feels socially and
economically empowered with the aid from ITC. She joined the Agarbatti hand
rolling activity 1 and half year ago. It has helped her to attain a regular source
of income and support her financially. She is also an active member of ITC-SEWA
Self Help Group which helps her to contribute towards her daily
savings. Before rolling Agarbattis she was not the member of SHG as she
couldn’t ask money from her husband but now she mentions after joining the
activity the scenario in her house changes completely. She earns around Rs
2000 to Rs 2500 per month by rolling Aarbattis. This helps her to take care of
her 2 children and support financially to her husband for improving their well-being.
Case 10: Mrs Mita ghosh is a permanent employee of scenting unit since 3
years. She mentions that the activity has helped her to support her family
financially and help her daughter pursue graduation. To send her daughters into
colleges was always what she dreamt of. ITC acted as an enabler in providing
42

employment and showing the gateway for savings. She is happy because he is
able to impart good quality education to her daughters and support her husband
financially. This gives her a sense of self-confidence to grow and improve her
family conditions.
43

Research Outcome
Challenges:
1. Sustaining Membership: To sustain member in Agarbatti rolling is very
difficult because there is no financial attraction in this activity. The return
on this activity is too low considering the time involvement of the member.
There is tendency for members to explore new livelihood activities after
rolling Agarbatti. Two kind of drop-out is seen. Few women temporary
leave the activity during seasonal agriculture work. However maximum
member leave this activity permanently due to hard work and less income.
Whenever new models are introduced, immediate dropout can be seen.
Members take time to understand and implement the model. As a result they
lose remuneration and are reluctant to adapt to change methodologies at the
cost of their remuneration. Below is the table depicting number of members
who have been provided training compared to number of members who roll
Agarbattis
Year No. of
member
trained
Month wise
average
involvement
Drop
out
1,364.00 463 901.00 66.06
2,168.00 615 1,553.00 71.63
1,969.00 446 1,523.00 77.35
1,238.00 317 921.00 74.39
Source: SEWA Record, Munger
Sl.
No.
Drop out %
1 2007-2008
2 2008-2009
3 2009-2010
4 2010-2011
2. Wastage: Presently, there is wastage at four different stages of Production.
44
These are detailed below:
Stage 1: Transportation and Sieving Loss: - There is a difference between the
raw materials supplied (as per the Invoice quantity) and physical material
received at every purchase of raw materials. For example to buy charcoal,
Vendor raises invoice of 50 kg /bag but at our end we receive only 46-47 kg .
This is because water is added to charcoal powder during preparation thereby
increasing its weight. When moisture evaporates the actual weight of the

material differs by 3-4 Kgs. After this the material is sieved to maintain quality
norms. The residue of raw materials after sieving is lost. In addition to this
during the course of sieving and transportation, some raw material is lost as it is
in dust condition. The sieving lost is roughly around 4 % and this loss is
unavoidable.
Stage 2: Loss at centre level: main wastage incurred at this level is during the
transit and distribution of raw materials from godown to centre and then to sub
centre.
Stage 3: Loss at Member’s level: The major source of wastage is at
member’s level. Since all the members are home based worker, loss of raw
material is more.
Hand roll worker in Munger
45

Raw materials tend to be misused by children and domestic animals in members
household. Sometimes quality of raw material as well as bamboo stick is also
not proper. There is lack of control over vendors as there is no fixed supplier
who can provide quality raw materials consistently.
Stage 4: At finished goods level: At the finished good level wastage is due to
grading of rolled Agarbatti into 3 categories. If a member does not produce
Agarbatti as per quality parameters, amount is deducted but it is not enough to
reduce the value of loss
A grade % B Grade %
2007-08 100.00 -
2008-09 92.03 7.97
2009-10 94.40 5.60
2010-11 91.98 8.02
2011-12 87.45 12.55
Total 93.10 6.09
46
Year
Source: SEWA Record
3. Competition: There are 2 major sources of competitors which SUSSSL
faces in this sector. The first is from Non government organisations and the
second is from private agarabtti vendors.
The NGO activities are grant supported therefore business practice like rate
reduction, appropriate wage rate are not practiced. In SUSSSL money is
deducted if count is lower than standard count or if the battis are not of
good quality. Since these are not implemented in other development
agencies, members prefer NGOs over co-operative.
The second sort of competition is faced from local private vendors.
Generally these vendors deal in local market and control entire chain of
scenting and packaging. They pay more to members (roughly Rs 4-8 more
than SUSSSL rate) and do not focus on quality parameters. The private
vendors also target SUSSSL areas where members are well trained and

produce quality batti by offering extra remuneration. Some of the vendor’s
active in the field and rate provided by them are below:
Vendor Name
Wages
Mister 22/- kg
Dilnawaaj 25/-kg
Nanhe 30/-kg
Source: Market Survey and SEWA Record
47

Chapter 5: Recommendations 1
Problem Identification: High Wastage and low Production of
Agarbatti
Quality /
Production
Raw
Material
Storage
Fig. 11 problem affecting the production of agarbatti
Need: Design Intervention
With the various problems encountered at the ground level the solution to the
above mentioned challenges which directly affect the quality of batti and
production can be minimized with the cost effective design intervention. The
will help to reduce the wastage at the distribution level as well as can help the
company to mitigate health issues. A proper design of manual will help the
centre in charge to store the raw material properly and will also make her
accountable to monitor the raw material often.
Thus below are the list of areas which should be covered under the design
manual stating do’s and don’ts regarding the project intervention.
48
Health
Issue
Sustaining
Workers
Low
motivation
drying
Agarbatti

Solution: A Manual to enhance Agarbatti Production
During my research one of the major problems encountered was the low
production of agarbatti in the district even though the raw material supplied was
high. The major problem as discussed in fig. 10 gives us the detailed idea of
factors leading to low productivity of agarbatti. The manual Proposed contains
chapter wise solution to the different stated problem.
The solution therein proposed will not only help in reducing the agarbati
wastage in the distribution level but also help to mitigate the health impact
related to incorrect sitting posture of women while rolling agarbatti , this not
only tend to create negative health impact but also reduces per member
productivity in the longer run.
The next thing which affect the quality of the agarbatti is it inadequate drying
process. The quality of agarbatti affected can be reduced by its simple design
strategy mentioned in a manual which will give an idea to the local women how
to dry the agarbaati in an efficient process without hampering the quality of the
product.
The other factor related to production is the wage of the women engaged in the
project. Low production is directly related to the wage of the women. Therefore
increase in production will be increase the wage of the women thus affecting
their monthly income and standard of living.
The other factor which can be easily attached with the manual is the intensive
based model to increase the motivation factor among the women. A written
document will help to gain trust of the women worker and they will be
motivated in order to work more and increase per women productivity yield
thus adding to overall production.
The other advantage of the manual will be building accountability in the
process at the centre level and at the NGO’s helping them to achieve their
monthly target. Thus the manual is the cost effective way to build a strategic
accountability into the system benefiting organization as well as the women
engaged with the project.
49

CHAPTER 1:
Problem: Raw Material Wastage at the centre distribution level
CHAPTER 2
Problem: Improper body posture may lead to health effect
50
Solution
A properly illuminated
storage space can help in
reducing wastage of raw
material due to damp and
spillage.
Solution
 Proper Systematic
training
 Tools and accessories
that will aid in proper
sitting arrangements
and postures can help in
achieving comfortable
production work
 Increases productivity
per person

CHAPTER 3
Problem: Inadequate drying process affecting the quality of Agarbatti
CHAPTER 4
Problem: Low motivation among worker
51
Solution
It would be beneficial to
keep mat or a wood block
underneath the stick before
drying
Solution
A regular draw or a
sustainable incentive based
model to be initiated in
order to increase the
motivation factor.

Recommendation 2
Problem Identification: Problem in SHG Book Maintenance
Dependency
Behaviour
Problem in
Book
Maintenance
of SHG
Fig. 11 Problem of poor SHG book Maintenance
Some of the problems arising due to poor book maintenance are problem of
annual auditing, dependency behaviour of the SHG member for the NGO
worker who maintains the monthly records. Thus leading to non-reliable up to
date record of SHG and wastage of time and money of field workers who have
to collect the data monthly and maintain the record manually.
Book records are the only source of data wherein all the records of savings and
loan are maintained, therefore improper record maintenance will lead to conflict
in the group and wasting overall time of the organization. Therefore for a
smooth functioning of the SHG’s the proper record maintenance is necessary.
Therefore an IT based solution will curb most of the problem faced by the
organization in maintaining the weekly and monthly records of the SHG
members.
52
No reliable,
up-to-date
record of
SHG
Wastage of
SHG
members’
time
Annual
auditing

Solution: IT in SHG-style microfinance to improve the SHG
Quality
Intervention to improve the bookkeeping quality of microfinance collectives
(Self-Help Groups – SHGs) by connecting these groups with trained
accountants (munshi) who use a PC with accounting software to maintain an
electronic database of SHG financial records and transactions. In this report, we
analyse qualitative data collected from site visits to three Different Location
locations. A few core insights are drawn from the overall design and
functioning of the project, which are relevant to any number of planned and
implemented projects in the use of Information Technology (IT) for rural
development.
A group of usually between 10 and 20 adults get together and make small (Rs.
50-100), regular (Monthly) contributions towards a common savings pool,
whose money is then continually re-lent to one or more of the group’s own
members at a set interest rate (almost always calculated on reducing balance).
Central to the path to long-run sustainability is the linkage of the SHG with a
commercial bank over a period of time, from which the group can borrow larger
amounts collectively (at a low interest rate) for on-lending to individual
members (removing the capital constraint faced by the SHG due to its own
limited resources).
Suggestions for future line of work:
Case studies of successful and unsuccessful Self-help groups, training needs of
SHG members, role of banks and NGOs in uplifting unsuccessful SHGs,
development of suitable marketing strategy for SHGs and the present study was
conducted in only one districts, hence it is necessary to have studies in other
areas in order to generalize the findings.
53

CONCLUSION
Sign of achievement of the project
• Project intervention directly related to the needs of the community. The
Unemployment problem in these villages were increasing at an alarming
rate thus the project has helped in employment creation and livelihood
generation in the district Munger. The project has been able to create a
positive impact in the district in terms of empowering women in the area
and imparting them with skills and livelihood opportunities
• Impact on the daily income earning of the rural and urban women in the
district has proved to be positive.
• Extra time of woman after finishing their daily work has been converted
into productive time due to the project intervention
• Home based work provided by ITC has helped these women to earn
54
while working in their home.
• Thrust given for capacity building and skill development of the
intervention area.
• Acceptance of the work by the villagers ha s also helped reduce the
social stigma in the village
• Opportunities for the women to get potential employment while they are
at home
• Thrust given to SHG formation to increase the saving mechanism of
these women
Overall the project act as an enabler for ‘Sustainable community
development , Enhancing livelihood opportunities by empowering
Local women, Strengthening local communities through capacity
building and Focus on self sustaining CSR model’.

References
1. Centre for Good Governance, 2006 , A Guide to Socio-economic impact
Assessment, unpan1.un.org/intradoc/groups/public/.../cgg/unpan026197.pdf
55
2. Social Impact tools and methods
http//www.worldbank.org
3. Bidwai Shreeniwas V ,CSR AT ITC LTD- viewing through strategic lens,
www.mmbgims.com/docs/full_paper/21_Bidwai_pp.pdf
4. Abdul Rashid khan and Zainib Biwi, Women’s Socio- economic
empowerment through participatory approach , A critical Assessment,
http://pu.edu.pk/images/journal/pesr/PDF
5. www.itcportal.com
6. V. Puhazhendi & K. C. Badatya,2002, SHG-Bank Linkage Programme for
Rural Poor – An Impact Assessment ,National Bank for Agriculture and
Rural Development
7. ITC Ltd , Women agarbatti producer ITC,
www.itcportal.com/pdf/Women-agarbatti-producer-ITC.pdf
8. ITC Ltd, 2011, Sustainability Report
www.itcportal.com/sustainability/sustainability-report-2011/annexure
9. Adopted from the Goldman Sachs Foundation, 2003 , The Impact Value
Chain
10. Self Employment Women Association SHG Record Book. SEWA, Munger

Annexure 1: Survey Questionnaire: Social Screening
Project Details
Description
Details
56
Type of project
Project Area and Location
Started
Institution Assessment
Description Details
Partner NGO
Total Community Group (SHG’s)
Socio- Economic Assessment – General Information
Description Details
Name and no. of SHGs in the project
area
Type of localities
Total population of project area
Social group
Literacy rate
Occupation
Population of project affected families
Vulnerable families
Household income

Socio- economic Impact over a Project Period
A. Social Variables
Before
Project
57
2008-till
date
Positive / Negative
1. Appreciation
App. in social function
App. by family members
Bureaucrats
Intermediaries
Societies
2. Participation
Social Activities
Association Voluntary Organization
Gripe against social tribulation
Involvement in Voluntary organization
3. Services & Social
Infrastructure
Social services
Education
Health
Physical Infrastructure
Population Sustainability
B. Economic Variables
Before project 2008-till
date
Positive / negative
1. Possession
Residence
Ornaments/ equipments etc.
Assets
Basic Facilities
2. Income
Personal
Family
Supplementary
3. Savings
Lending capacity
Bank savings
Intangible investment
4. Debt
Reduction in debt

Feedback Mechanism: Level of Impact of the Project on the Women
Empowerment
Activities
Agree Neutral Disagree Ranking
58
Improvement in Social Status
Poverty Reduction
Improvement in Income level
Improvement in consumption level
Increase in Decision Making Process
Confidence Building
Improvement in communication Skills
Awareness of Social Issues
Improvement in Health
Improvement in standard of living
Food Security
Equity
Psycho-social stress

Annexure 2: Sample Selection
59

Annexure 3: Research Assessment tools
Annexure 4: Project Research Area
Urban Areas
Rural Areas
60
Hasanganj, Belan bazar , laloo
pokhar , haji sujan , choti
Mirzapur, ganga sagar, purani ganj
, maksaspur , shivnagar maniya
chauraha & Bindwada
Kataria, Taufir , Mai, Hasanpur,
Navagadi & Benigir
Time line Participatory rural
Appraisal
Beneficiary
Assessment
Stakeholder meeting
Duration
4th April – 5th May
2012
4th April to 5th may
2012
7th May to 15th may 2012
Participating
Communities
SHG Agarbatti rollers & SHG Agarbatti rollers & SHG &
NGO’s
Methods
Structured / Semi –
structured
Interview: Survey/
FGD / Mapping
Semi structured
interview/ FGD &
Observation
Semi Structured Interview
Sampling
Multi Stage random
Sampling
Random sampling Small sampling
Statistical
Analysis
Field / Data analysis Field/ data analysis Data analysis & Records
Method
Qualitative/
Quantitative
Quantitative /
qualitative
Qualitative

Annexure 6: scoping Matrix
61

A nshu final project 20140418-120958

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