The document discusses a project by International Development Enterprise (IDE) to develop an affordable bicycle for farmers in rural India. IDE aimed to design a bicycle that could transport 50kg of cargo, travel at 6 mph on dirt roads, and retail for under $15. After developing prototypes, field testing revealed issues with comfort, stability, and carrying capacity. IDE faced challenges in finding a durable, low-cost wheel material and bearings to meet its $15 price target. It considered partnerships with larger manufacturers to help scale the project.

1. Bicycle for India
By Vijaya Narayanpeddy and Nancy Sampson
Himanshu Singh (1012)

2. “Affordability isn’t everything
It’s the only thing”
-Paul Polak

3.  International Development Enterprise
 Founded in 1981
 International not-for-profit corporation devoted to the
manufacture, marketing, and, scalable micro-irrigation
and other low-cost water recovery systems throughout
the developing world
 Facilitates local manufacture and distribution of these
products through local supply chains that sell to farmers
at an affordable price
 This strategy allows farmers to grow higher value and
surplus crops, and in turn links them to high-value crop
markets where they can realize profits from their higher
yields.

4.  Mainly work in Africa (Burkina Faso, Ghana,
Ethiopia, Zambia, Zimbabwe, Mozambique), Asia
(India, Nepal, Bangladesh, Myanmar, Cambodia
and Vietnam) and Latin America (Honduras and
Nicaragua)
 Decentralized organizational structure
 Head office in India - New Delhi
 Field office in in India - Orissa, West Bengal,
Aurangabad, Bangalore, Indore, Himachal Pradesh
and Udaipur

5. Bicycles

6. Bicycles

7. The Bicycle Project
 Started in the year 1992
 A challenge for designing bicycle for farmers living
in rural area, to take farm produce to the market.
 Those farmers, who cannot afford to buy a bicycle
(i.e previously they don’t own a bicycle <Target
customer>)
 Would improve global environment.
 Rob Carter, a mechanical engineer involved in the
project

8. Target Area
Urban Consumer Rural
Urban
Producer
Rural

9. Some facts (As of year 1994)
 Total population = 952 million
 Approx. 50% live BPL, now 41.6%
 Average annual income = $270 (Rs 8100)
 76% population living in rural area are farmers.
 10% of farmers are “landlords” having 10-50 acre land
 70% are “small farmers” having less than 10 acre land
 20% do not have any land.
 Income status of farmers
 50% earns less than Rs 4000 per year (Rs 333.33 pm)
 30% earns Rs 12,000-30,000 per year (Rs 1000 -
2500pm)
 20% earns more than Rs 30,000

10. Some facts (As of year 1994)
 In 1994, India produced 7.4 million bicycles (7.3% of
the world production) - Not affordable to farmers
 Price range of Hero models was Rs 930 - 2500
Market status
Hero Atlas BSA Others
10%
15%
50%
Market Leader is ‘Hero’
25%

11. The bicycle project
 IDE bicycles must have;
 Simple design – could be manufactured and served in rural
setting
 Durable, with ease of maintenance
 Minimum speed capability of 6 miles an hour (twice the speed
of walking)
 Withstand gravel-paved or dirt roads
 Transport of minimum 50Kg of cargo
 Retail including profit margin at not more than $ 15 (approx Rs
450)
 %15 is a target lesser than the minimum price in India for
a bicycle.
 IDE also emphasized on the price, that it should not be
higher than the second hand bicycle.

12. Technological development
 Main aim to reduce the cost
 Stripped bells and whistles
 Chins and sprockets were removed and the drive was
placed directly on the first wheel
 Sheet metal was to be used to make the frame
 The key success of the project rested on a wheel
(How??)
 Cheapest wheel available was of $5 each. i.e. $10 for
both wheel
 Frame and front fork will cost $ 10
 Over all cost would reach $20 (Higher than the ceiling
retail price)
 Plastic Wheel can be the solution (given by Joe Montgomery)

14. IDE concern
 Their bike would be the cheapest
 With the increase in income gradually, target
consumer may shift towards the conventional
bicycle.

15. Field Testing
 Prototype suitable to Indian farmers were made, and
tested
 Subcontracted to local village NGOs
 Mixed response
 Stable/unstable
 Easy/difficult ride
 Farmers found it uncomfortable
 Limited carrying capacity

16. The challenge
 To find solution for wheel and bearings
Samples were
•Plastic wheel made collected and were
up of nylon reinforced sent for physical
with fiberglass (used
testing in University of
in wheelchair) – It
would be costly Colorado
•Polypropylene –
found in twine used Later Canadian firm also
for bailing hay, will be shown unwillingness to
reinforced with jute. make more samples

17. The challenge
 Cannondale - An American bicycle manufacturer
was very impressed with what Paul has done
 Paul realized that Best fit is in Hero, but his ceiling
price is too low to agree Hero upon
 Or Paul should look for other industrial giants like
Tatas and Birlas as partners

18. 4 A analysis
 Awareness - Positive
 Availability - Positive
 Affordability - Positive
 Acceptability - Positive

19. What he should do??
SCRAP CONTINUE