Imayam Women's Federation (IWF) is a community-owned organization that promotes increasing the bargaining power of poor women through self-help groups and providing financial services like loans, savings programs, and insurance. IWF currently has over 3,000 active members across 6 branches in Tamil Nadu and Pondicherry. The organization is led by experienced managers Kandaswamy Murugesan and Calathil Anuraj and aims to reach 40,000 customers by strengthening its community governance model and mobilizing more funds. Financial projections estimate rapid portfolio and customer base growth over the next 5 years, with a return on assets of over 4% by 2013.

1. IMAYAM WOMEN'S FEDERATION (IWF) EFFICIENCY WITH EQUITY Imayam Womens' Federation

2. Overview Entrepreneur’s profile Business Proposition Financial Analysis Management and Human Resources Imayam Womens' Federation

3. Entrepreneur’s profile Name: Kandaswamy Murugesan Education: B.Com and PGDRM from IRMA Experience: In a thrift and credit cooperative, was inducted as CEO for seven months and worked as CEO for five months Entrepreneurship: Established a trading business and successfully managed it for 5 years

4. Entrepreneur’s profile Name: Calathil Anuraj Education: B. Sc (Agriculture) Experience: In DHAN Foundation for 9 years and in League for Education And Development (LEAD), as HR for 3 years. Skills Set: Skilled at community mobilization, governance, internal resource mobilization, and HRM

5. Business Proposition Identified Problem “ Inequitable distribution of wealth due to low bargaining power of poor vis-à-vis other market participant”. IMAYAM WOMEN'S FEDERATION (IWF) “ IWF promotes community owned and professionally managed organization to increase the bargaining power of poor. With more bargaining power, poor not only participate in wealth creation process but also get their due share”

6. Methodologies and Products Self Help Group (SHG) methodology Monthly meeting and 10-15 members / SHG Products Bank linkages Livelihood Finance : Voluntary monthly savings Short term loan Rs 2000-10000 loan paid within 12-18 months Interest18 % dim. and 3 % processing fee In the future, Bigger loan , Insurance and Marketing services

7. Areas of Operation IWF has six branches operating in four districts of Tamilnadu and one in Pondycherry No of No of Active Branches Members (as on 31.5.08) IWF 7 3172 Tamilnadu Erode 2 722 Namakkal 1 614 Tiruchirapalli 2 100 Tiruvannamalai 1 834 Pondycherry 1 902

8. Target Market and Customer Base Estimated poor in four districts of Tamilnadu is 400,000 IMAYAM is planning to reach 40,000 Credit: Supply driven Thrift: Demand influences market Insurance: Distribution Channel Competitors: Numerous money lenders and pawn brokers and subsidy related government schemes

9. Areas of Operation IMAYAM PONDICHERRY IMAYAM MUSIRI IMAYAM TIRUVANNAMALAI IMAYAM TIRUCHENGODE IMAYAM KODUMODI IMAYAM MODAKURUCHI IMAYAM WORAIYUR IMAYAM WOMENS’ INDIA PRODUCER COMPANY (HEAD OFFICE)

10. Strengths External commercial Borrowing Low regulator interference Community capital at low cost Professional management Experienced staff with commitment Members disiciplined to thrift and credit Starting with member resources Strategic focus Established system Weakness Mobilizing equity funds may not be easy Possibility of Conflict between Professional and community No tax exemption for surpluses SWOT Analysis

11. Opportunities Access to funds is good Availability of customized IT tools Enabling Policy initiatives Professionalization of MFIs. Threats Regulation of Interest Rate Financial discipline at member level is at risk Changing life style needs and societal attitude would increase financial frauds SWOT Analysis

12. Social Impact Alternative (to money lender ) source of finance Member can save Facilitating creation and accumulation of income earning assets Contribute at least Rs 600 and 1000 per month at average loan size of Rs 7000 to 15000 Asset accumulation in a particular geographical area low cost finance to society Collective bargaining position of poor improve For poor a life with dignity by making them financially independent Impact at member level Impact at society level

13. Financial Income and Cost Structure

14. Financial Analysis Parameters/Year 2009 USD 2010 (Projected) USD 2011 (Projected) USD 2012 (Projected) USD 2013 (Projected) USD Number of Clients 6000 9000 15000 25000 40000 Portfolio Size 510,579 907,596 1,576,614 3,481,964 5,398,505 Portfolio growth rate YOY in % (CAGR is 91 %) 138.27 77.76 73.71 120.85 55.04 Geographical coverage (number of States) 2 2 2 2 2 Number of Branches 7 7 10 16 16 Staff 31 31 44 73 73

15. Growth Projections in % Important indicators 2009 2010 2011 2012 2013 Return on Assets (ROA) 0.00% 0.23% 1.56% 1.91% 4.26% Return on Net worth (RONW) 0.00% 1.56% 8.95% 11.43% 18.12% Debt to Equity ratio 3.36 4.94 4.56 5.75 4.07 Debt Requirement (INR) in Million 12.5 28 45 130 200 Equity Requirement (INR) in Million 0.3 1.9 4.9 8.5 18.8 Capital Adequacy (Risk Weighted) 16.58 % 15.83% 19.43% 17.04% 24.77%

16. Growth Projections in % Important indicators 2009 2010 2011 2012 2013 Operational expenses 13.72 11.73 7.59 6.30 3.25 Financial expenses 3.24 6.89 7.49 8.20 7.66 Loan Loss Provision 2.00 2.00 2.00 2.00 2.00 Total expenses 18.96 20.61 17.07 16.50 12.91 Yield (Interest only) 13.69 16.31 16.02 15.74 16.31 Processing Fee 4.73 4.83 4.63 5.00 3.95 Total Income 18.42 21.13 20.65 20.74 20.26 Profit/(Loss) -0.54 0.52 3.58 4.24 7.35 PAT (@ 30 % Tax) 0.00 0.36 2.50 2.97 5.15 OSS 97 103 121 126 157 FSS 82 90 101 106 126

17. Management and Human Resources

18. Management and Human Resources Community has >3 years exposure to MFI Governance K.Murugesan, as CEO of Imayam C.Anuraj as CMO Other Twenty three staff (with three years work experience in a MFI) as field managers. Professional team with experienced community implements the ???.

19. Risk Management Operational Risk Saturation approach, financial deepening and Centralised Management Information System Provident Fund to and Deposits from Staff Credit Default risk Incentive Based Pay and Human resources focused approach with community governance. Interest rate risk Building strong portfolio through borrowings and Mobilizing community capital

20. Thank You IMAYAM WOMEN'S FEDERATION (IWF) Entrepreneurs (Contact Information) Mobile K.Murugesan :09790381052 C.Anuraj :09790381051 E-mail K.Murugesan : kmp1981@gmail.com C.Anuraj : calathilanuraj@gmail.com