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