JivikaBusinessPlanFINAL

Prepared for: 3M - Sales For Social Impact
Prepared by: San Diego State University
December 6, 2016
Professor Dan McGinley

JIVIKA
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BACKGROUND 3
MISSION STATEMENT 4
COMPANY DESCRIPTION 4
VALUE PROPOSITION 5
SUSTAINABILITY 5
O FINANCIALLY
O PERSONNEL
SERVICE PLAN 6
O PRODUCTS AND SERVICES
O PRICE
O DELIVERY
O INSTALLATION
TECHNICAL DESCRIPTION 8
O SOLAR ENERGY
O WATER STERILIZATION
MARKETING PLAN 9
O LAUNCH
O IMPLEMENTATION
SALES PLAN 11
LOCATION 11
GROWTH PROJECTIONS 12
FINANCIALS 13
VARIABLE COSTS 14
MICRO-FINANCING 14
WATER EXPENSES AND REVENUE 166
SOLAR EXPENSES AND REVENUE 177
COMBINED EXPENSES AND PREDICTED REVENUE 18
CONCLUSION 19

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Background
There are about seven billion people on this planet and more than three billion of them live in poverty,
which is half of the population living at the bottom of the pyramid. India has the world’s second largest
population and share 20.6% of the world’s poorest as of 2011. That is why Jivika was founded, to help these
people at the bottom of the pyramid, but not only through providing them with necessities like water and basic
electricity, but also by making them independent and out of poverty for good. Jivika is a utility company that
provides a kit of solar equipment for rent on a monthly basis and provides clean water on a more frequent
basis. Both services are meant to be full service, which means that Jivika will stand for everything from
handling and maintaining the solar equipment to delivering the water to the customer's door.
Jivika means “source of life” in Hindi and that is exactly what it’s supposed to be. Life cannot exist
without water and these days, in most parts of the world, electricity is becoming an almost as essential part of
human life. In India specifically, the government recently got rid of the two largest bills, with the purpose of
going towards a more digital way of handling money. To do this, the local population uses cell phones, and this
is one way that electricity is becoming as essential in India as in many other industrialized countries.
The Jivika India Solar Kit is a self-working equipment that uses solar panels to charge up 12 volt
batteries and Jivika’s water department uses proprietary water purifying equipment to purify dirty water for
families who may not have access to electricity and clean water that will improve the health, sanitation, and
safe energy usage of Indian people, unlike our competitors, which does not consider both water and electricity
for people of India, our solar kits and water service provide each hand in hand.

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Mission Statement
Jivika India: To help the B.O.P. sector grow by providing everyone with sustainable energy and clean
water, “One village at a time”.
Company Description
Jivika is a utility company that provides a kit of solar equipment for rent on a monthly basis and
provides clean water on a more frequent basis. Jivika is a women-owned cooperative that is essentially one
company, two brands: Energy & Water Dept. Employees buy shares to take part in the company and invest
their time. Jivika is designed to provide a sustainable business with a growth model enabling people to rise and
leave BOP.
By conducting a feasibility study we discovered a region of India where we can provide our business to
three villages serving the base of the pyramid. The region is called Madhya Pradesh and the three villages we
found out to be the most fitting for our business are Boharda, Gayhana and Hatnur.
Jivika (Indian meaning “source of life”) is a woman-owned cooperative consisting of two brands:
Jivika solar and Jivika water. Locals are given the opportunity to take part in the founding of a democratic
organization whose profits and earnings are distributed among the members according to the weight of their
shares. Due to this business structure and jobs being created, a certain number of people can benefit. As a
consequence, they are given the possibility to improve their living conditions and raising from the base of the
pyramid. The jobs being offered to create a sustainable business are the positions of General Manager,
Operations Manager, Sales Representative and employees responsible for daily operations. The tasks of the
General Manager are billing, purchasing and accounting. The business needs two different Operation Managers
each supervising one of the brands. SeveralSales Representatives are responsible for spreading our products
across our target markets. A part of our employees is trained in a variety of tasks consisting of solar delivery,
installation and maintenance. At the same time, the other part of the employees is engaged with the water

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purification and distribution.
Value Proposition
Jivika provides real value. Without water there is no life, and without electricity the life of humans in
an industrialized world it becomes hard to make the most basic of things. Such as being able to transfer money
to your family in another city to keep them fed for the day. Jivika will not only provide this value to all of their
customers but further lift whole communities out of poverty and out of the base of the pyramid. The females
running the business will, maybe for the first time, be able to make their very own money to spend in any way
they like without feeling dependent on husbands to provide for them and the family. This company will, in a
revolutionary way, make, both the people running the business and their customers, live a healthier and longer
life since their water standard is significantly higher with Jivika’s filtered water than the previous water that is
contaminated with germs and puts one’s health at risk. The electricity that Jivika provides will significantly
raise the standard of living and it will enable the local population to raise out of the bottom of the pyramid, for
good.
Sustainability
FINANCIALLY
Jivika understands that, at first, it might be challenging to get customers to try their services when
living at the base of the pyramid and every Rupee spent needs to be very well planned. However, by providing
prices in line with what is already charged to the local population Jivika will catch interest from many already
from the beginning. And once a smaller part of a community has tasted all the benefits Jivika can offer, and to
the same price as before, it will be easy to recruit a significantly larger customer base. Since Jivika believe one
of the most efficient marketing channels are the word-of-mouth, especially in an area such as our target groups,
Jivika will be highly sustainable once value is proven to a few. Financial sustainability will further be reached
due to the water part of the utility company, water is an essential need that continuously needs to be satisfied.

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In this way, Jivika can count on providing this on a regular basis to the customers and can therefore make
realistic financial forecasts which will both bring value to the owners and give opportunities to continued
regional growth.
PERSONNEL
Further, the business needs to be sustainable for the employees of the company. Jivika’s solar division
is as described previously based on a form of rent from Jivika to the customer. Due to that maintenance is
included in the rent for the kits, someone will have to provide this service. Also, the first time a solar kit is
being installed, personnel from Jivika needs to not only just deal with the handling of the kit but also the
installation. In this way it will be sustainable from a personnel perspective with the solar division of the
company. As of the water, since it is based on a delivery service to the customer’s door, another employee(s)
needs to provide this service. Both of the mentioned services will be sustainable since they are both parts of the
packages that Jivika offers and this results in job security for the employees on a more long-term basis.
Service Plan
PRODUCTS AND SERVICES
Jivika is a utility company offering a distribution of
solar and sterilized water. Jivika provides solar kits for rent
which will be attached to the customers’ homes. Moreover,
installation and annual maintenance are included in the
company’s service.
In order to enable the company to distribute sterilized
water, two tanks are built. One is used to store dirty water and
the other one is used for the purification process. Water from the
river is pumped into one tank which then needs to be sterilized
with hypochlorite previously produced with an

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electrochlorinator. After half an hour, the water can be moved to the other tank and then be filled into jugs.
Afterwards, the jugs can be distributed to the customers in addition to the solar kits.
PRICE
Jivika water and solar fees are in line with the rates that are currently charged in India for water and
energy. Also factored in to the costs are the local average salary and the customer base that we will serve. Solar
will be $2 per month for each family, for one solar panel installed on the residence. The water charges are also
comparable to other water options in India, charging $1.80 per month for 10 liters of water every other day,
based on a 5 liter per day usage rate. Due to the current salary of the customer base, there is no additional
installation or maintenance charges for the solar or water, the costs are factored into the monthly rate.
DELIVERY
Jivika focuses on creating a public utilities service that can distribute clean drinking water and solar
energy to the “bottom of the pyramid” of India at an affordable price. Jivika will implement a distribution
system that employs 15 delivery bikers who transport the Jivika Solar Kit and 10L’s of clean water to their
clients’ homes.
Solar: Jivika will deliver each solar kits to customers through our bicycle system. Usually this will
happen during the first purchase (When a customer first signs up for Energy Subscription). Then delivery day
will be scheduled. Jivika offers full service so that each solar kit will be installed by a trained professional and
regularly maintained during water drop offs. The Delivery Biker will be in charge of cleaning the Solar Kit and
collect old water jugs.
Water: We will deliver water jugs to each customer daily. Each day we will have teams break into
different routes. Each employee will have their own designated routes/territories. During Year 1, delivery
bikers will be servicing one village expanding routes with growth.

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INSTALLATION:
Solar kits will be installed by trained technicians. Once the customer signs up for electricity, they will be then
be assigned a date for delivery and installation. Installation will take about an hour.
1. Technician will look for the best area to mount the solar panels (Ideally it would be the
roof. (Any mounting location would work as long as there is access to direct sunlight)
2. Once the area is chosen, the technician will install the panels securely with provide
mounts and bolts.
3. Afterwards, the battery kit, converter and adapters will be placed somewhere nearby to
the solar panels. This would tend to be on ground level within the house. Ideal
placement would be a well ventilated area.
4. Once panels and kits are in place, the connecting cables will be ran, connected and
secure (Solar panels to the converter kit).
5. Once that is established, the light bulbs included will be ran and secured. Placement of
light will depend on where the customer would like them to be. This step can also be
done by the customer. Since they may want to have the lights placed elsewhere.
Technical Description
SOLAR ENERGY
Jivika is providing 20w portable solar energy kits which would be used by the households to light their
houses and charge their phones. The brand of the kits is TAICO Shenzhen Taico Technology Co. They are
experts in battery technologies, their batteries are found in 115 countries, with 5000 companies choosing Taico
as their suppliers for batteries; they have supplied 42 million batteries since 2002.
The kits come with a solar panel made of polycrystalline silicon, three 3w LED lights, a MF
rechargeable lead acid battery that comes inside the interface where there is a 5V USB output, 4 DC 12V
output where the lights are connected, two lights that indicate if the battery needs to be charged or is charged
completely and a switch to turn on and off the interface. The battery life of the kits is five years, but Taico can

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supply more and they can be assembled easily where Jivika will be located. The kits also come with a five year
warranty.
WATER STERLIZATION
In order to sterilize the water, an electro chlorinator will be used. The equipment passes eight volts of
electricity at four amps through a five percent solution of sodium chloride (ordinary salt). This generates
twenty liters of chlorine based liquid oxidants per day, enough to sterilize 80,000 liters of water each day. A
Jivika associate will dissolve 67.5 grams of salt in 2.5 L of water and inserts electrodes plugged into a solar kit.
Two and a half hours later, he or she conducts a two-minute test of chlorine concentration, and repeats the
process.
Marketing Plan
LAUNCH
The first step of launching Jivika is to attract
attention of the people in Boharda, Gavhana and
Hatnur. It is essential to inform and teach the potential
customers about our company and the benefits of our
services in the most simple and effective way possible.
Therefore we planned the following steps:
1. Set up a promotion stand in each sales district
(Village) with one employee who explains our product.
2. Give out flyers by an additional employee, with
simple images and a short text explaining our services.
It is important to show our actualproduct at the stand, so we can convince them not only by telling
them about our service but actually showing how it works. Hence we should present one of our delivery bikes
with the water jugs next to the stand. That way we are not only attracting attention but also showing what and

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how we deliver. Giving out free samples of water and setting up one of the solar kits for people to be able to
test the product e.g. charging their phones will be another unique and convincing reason to order our service.
This way we use our own resources without spending additional money on big events, which probably
not even prove effective in such a rural area.
We suggest to do the launch promotion during the time right before the business starts, so that we are
not wasting time when we are ready to deliver. Last but not least we
should use the launch to inform people about the possibility to become
a part of the Jivika cooperative.
IMPLEMENTATION:
Promotional activities:
It is important to run the promotional activities on a regular basis after
the launch. Still those activities should be simple and on low costs.
Therefore we find the following activities as most reasonable:
1. Involving other local businesses:
We should ask local business owners (kiosks etc.) to help us inform
their customer base about our services. They could give out our flyers and hang out advertisement posters that
we give them.
2. Keep doing the stand on a regular basis:
As mentioned above we think demonstrating a product/ service is always more convincing than just talking
about it. That is why we should do the stand once a months until we penetrated the market.
3. Word of mouth/ Tell a friend:
People trust friends and neighbors. Using existing customers as promoters is an effective and basically free
way to acquire new customers. Tell- a- friend promotion can be paid by rewarding customers with e.g. one free
water jug or a discount.

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Sales Plan
Order Processing:
To manage the orders of our product we planned severalways:
1. Automatic text messages: We will give the people the option to order our service/product through text
messaging, by texting “water“, „electricity“ or both to a central number. The system will then reply
automatically and ask the client for order details such as address, name or required delivery frequency for water
etc. All the information will be connected to and managed in the CRM System, to build an effective delivery
plan and to have an overview of all the current customers. Cancellation can be also be done by texting.
2. Personal Registration:For the people without a cellphone, we plan to provide paper registration forms at
central points such as the kiosks, the promotion stands etc. The forms will be regularly collected by an
employee, who will then add these orders manually to the system. To cancelthe service in person, the customer
has to notify the deliverer on- site.
Location
Jivika will be located in the state of Madyha Pradesh in centralIndia. Madhya Pradesh is the fifth most
populous state in India and home to 73 million people, of which 24 million inhabitants suffer from poverty.
Especially in the rural eastern and southern districts growth is lower than in other states and it is mainly driven
by industry and services. This includes the three villages we want to start Jivika in.

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Village
Total Population Households
Boharda 892 189
Hatnur 817 173
Gavhana 510 103
Total 2219 465
These three villages were chosen by looking at the following factors:
1. Access to micro finance branch: To secure the on time repayment, there needed to be a branch of
MFI Janalakshmi located close to the business. Bahadarpur, a large village located in the Burhanpur
district of Madhya Pradesh, has a branch of Janalakshmi.
2. Access to water: In order to provide potable water, there needed to be a water source close by. The
Tapi River is right next to the three villages and therefore secures the continuous access to this input
resource.
3. Growth opportunities and infrastructure: All three villages are close to each other and connected by
simple roads, which enables Jivika to deliver products and services easier and more efficiently. In
order to create a sustainable business there needs to be growth opportunity and this location gives
Jivika the chance to expand to other close villages.
Growth Projections
Jivika’s growth plan starts with 200 customers for solar and 400 customer for water the first year .
After this we believe the company will be so known, and popular due to the services, that the pace of growth
will increase. This results in doubled customer base for solar, 400 customers, and an increase to 600 customer

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for water after year two. However after the second year of such large growth, we believe that a more realistic
growth for further years will be lower, which results in a constant growth rate of 12.5%. Resulting in 450
customers for solar and 650 customers for water in year three and so on.1
Considering further growth and considering a more long-term plan for the company. Jivika is
calculating on regional expansion and building similar projects in new villages with the same business plan.
Potential villages that are closely located to the primary one is e.g. Bahadapur or Loni or even other villages
across the river.
Financials
Jivika’s cost structure is divided into the two departments, water and solar. For water, the initial costs
are divided up among the storage, distribution, and treatment of water. The largest costs are the jugs to carry
the water once treated from the tank to the customers. Each jug costs $3, requiring two per customer in order to
leave one with the customer, and rotate one back to the facility to fill and deliver on the next trip. Solar’s fixed
costs are also divided; a large portion of the costs are for the actual solar kits that will be given to each
customer to provide the solar energy, and the transportation to deliver, install, and then maintain each system.
Each solar kit costs $60 per customer.
The variable costs for Jivika, both solar and water, can be found in the section below. For solar, once
installed, there will be technicians who will maintain the solar panels. For water, it will require constant
delivery to the families. Any additional variable costs would be minimal, required for general upkeep;
replacing any equipment as needed, such as solar panels, bicycles, water jugs, and additional water
components.
Employee costs are based on a $0.40 per hour wage and cover the employees working for either solar
or water. For solar, the employees are given 2 hours for each solar kit installation and 1 hour per customer for
annual maintenance. The solar panel maintenance includes a relatively quick check of the panel and cleaning of
the actualpanel, which motivates the short time set aside for annual maintenance. The employees delivering
1 For exact numbers, please see financial spreadsheet

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water are given one hour to deliver 80 liters of water, the total amount the bikes will be outfitted to carry. This
will serve 8 families on each run, with multiple runs being done in a day.
Variable costs
Jivika water and solar fees are in line with the rates that are currently charged in India for water and
energy. Also factored in to the costs are the local average salary and the customer base that we will serve. Solar
will be $2 per month for each family, for one solar panel installed on the residence. The water charges are also
comparable to other water options in India, charging $1.80 per month for 10 liters of water every other day,
based on a 5 liter per day usage rate. Due to the current salary of the customer base, there is no additional
installation or maintenance charges for the solar or water, the costs are factored into the monthly rate.
Micro-financing
Jivika will be financed with a microloan from Janalakshmi Financial Services (JFS). “JFS is the largest
and fastest growing Microfinance Institution (MFI) in India...and currently serves over 5.35 million families
across 197 cities in India” (About Janalakshmi). Based on being a new startup business with no prior business
history, Jivika will likely be financed at the highest possible APR of 26%, on a 36 month payment plan. Solar
will require an initial loan of $12,000 to cover the fixed costs, and water will require a loan of $7,000, for a
combined total loan of $19,000.

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Microfinance Solar Water
Loan Amount $12,000.00 $7,000.00
Interest Rate 26% 26%
Period 36 months 36 months
Monthly Payment $483.49 $282.09

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Water Expenses and Revenue
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Water Revenue 8,640.00$ 12,960.00$ 14,040.00$ 15,120.00$ 16,200.00$ 17,280.00$
Costs
Electrochlorinator (150.00)$ -$ -$ -$ -$ -$
Sodium (4.50)$ (4.50)$ (4.50)$ (4.50)$ (4.50)$ (4.50)$
Testing (56.15)$ (112.31)$ (112.31)$ (112.31)$ (112.31)$ (112.31)$
Bikes (50%) (750.00)$ 0 -$ -$ -$ -$
(4000L) Tank (85.00)$ -$ -$ -$ -$ -$
Water jugs (2,400.00)$ (1,200.00)$ (300.00)$ (300.00)$ (300.00)$ (300.00)$
Solar kit (60.00)$ -$ -$ -$ -$ -$
Pump (120.00)$ -$ -$ -$ -$ -$
Water bike kit (150.00)$ -$ -$ -$ -$ -$
Labor (3,650.00)$ (5,475.00)$ (5,931.25)$ (6,387.50)$ (6,843.75)$ (7,300.00)$
Total costs (7,425.65)$ (6,791.81)$ (6,348.06)$ (6,804.31)$ (7,260.56)$ (7,716.81)$
Expenses
Loan expense (3,384.41)$ (3,384.41)$ (3,384.41)$
Total expenses (3,384.41)$ (3,384.41)$ (3,384.41)$ -$ -$ -$
Annual water income (2,170.07)$ 2,783.78$ 4,307.53$ 8,315.69$ 8,939.44$ 9,563.19$
Water Customers
Year 1 400
Year 2 600
Year 3 650
Year 4 700
Year 5 750
Year 6 800
Water loan 7,000.00$
Int rate 26%
Periods 36
Monthly pmt ($282.03)

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Solar Expenses and Revenue
Solar Revenue 4,800.00$ 9,600.00$ 10,800.00$ 12,000.00$ 13,200.00$ 14,400.00$
Costs
Solar kits (12,000.00)$ (12,000.00)$ (3,000.00)$ (3,000.00)$ (3,000.00)$ (3,000.00)$
Bikes (50%) & carts (950.00)$ -$ -$ -$ -$ -$
Installation labor (160.00)$ (160.00)$ (40.00)$ (40.00)$ (40.00)$ (40.00)$
Maintenance labor (80.00)$ (160.00)$ (180.00)$ (200.00)$ (220.00)$ (240.00)$
Total costs (13,190.00)$ (12,320.00)$ (3,220.00)$ (3,240.00)$ (3,260.00)$ (3,280.00)$
Expenses
Loan expense (5,801.85)$ (5,801.85)$ (5,801.85)$ -$ -$ -$
Total expenses (5,801.85)$ (5,801.85)$ (5,801.85)$ -$ -$ -$
Annual solar income (14,191.85)$ (8,521.85)$ 1,778.15$ 8,760.00$ 9,940.00$ 11,120.00$
Solar Customers
Year 1 200
Year 2 400
Year 3 450
Year 4 500
Year 5 550
Year 6 600
Solar loan 12,000.00$
Int rate 26%
Periods 36
Monthly pmt ($483.49)

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Combined Expenses and Predicted Revenue
Solar Revenue 4,800.00$ 9,600.00$ 10,800.00$ 12,000.00$ 13,200.00$ 14,400.00$
Costs
Solar kits (12,000.00)$ (12,000.00)$ (3,000.00)$ (3,000.00)$ (3,000.00)$ (3,000.00)$
Bikes (50%) & carts (950.00)$ -$ -$ -$ -$ -$
Installation labor (160.00)$ (160.00)$ (40.00)$ (40.00)$ (40.00)$ (40.00)$
Maintenance labor (80.00)$ (160.00)$ (180.00)$ (200.00)$ (220.00)$ (240.00)$
Total costs (13,190.00)$ (12,320.00)$ (3,220.00)$ (3,240.00)$ (3,260.00)$ (3,280.00)$
Expenses
Loan expense (5,801.85)$ (5,801.85)$ (5,801.85)$ -$ -$ -$
Total expenses (5,801.85)$ (5,801.85)$ (5,801.85)$ -$ -$ -$
Annual solar income (14,191.85)$ (8,521.85)$ 1,778.15$ 8,760.00$ 9,940.00$ 11,120.00$
Water Revenue 8,640.00$ 12,960.00$ 14,040.00$ 15,120.00$ 16,200.00$ 17,280.00$
Costs
Electrochlorinator (150.00)$ -$ -$ -$ -$ -$
Sodium (4.50)$ (4.50)$ (4.50)$ (4.50)$ (4.50)$ (4.50)$
Testing (56.15)$ (112.31)$ (112.31)$ (112.31)$ (112.31)$ (112.31)$
Bikes (50%) (750.00)$ 0 -$ -$ -$ -$
(4000L) Tank (85.00)$ -$ -$ -$ -$ -$
Water jugs (2,400.00)$ (1,200.00)$ (300.00)$ (300.00)$ (300.00)$ (300.00)$
Solar kit (60.00)$ -$ -$ -$ -$ -$
Pump (120.00)$ -$ -$ -$ -$ -$
Water bike kit (150.00)$ -$ -$ -$ -$ -$
Labor (3,650.00)$ (5,475.00)$ (5,931.25)$ (6,387.50)$ (6,843.75)$ (7,300.00)$
Total costs (7,425.65)$ (6,791.81)$ (6,348.06)$ (6,804.31)$ (7,260.56)$ (7,716.81)$
Expenses
Loan expense (3,384.41)$ (3,384.41)$ (3,384.41)$
Total expenses (3,384.41)$ (3,384.41)$ (3,384.41)$ -$ -$ -$
Annual water income (2,170.07)$ 2,783.78$ 4,307.53$ 8,315.69$ 8,939.44$ 9,563.19$
Net income/loss (16,361.92)$ (5,738.07)$ 6,085.68$ 17,075.69$ 18,879.44$ 20,683.19$

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Conclusion
In conclusion, Jivika’s main goal is to help move the base of the pyramid out of their poverty level. By
creating a utilities company, we are able to provide the villages with the basic necessities of clean water and
sustainable energy. Jivika will raise the living conditions of multiple villages in India, with the ability for
continued growth and success, encouraging a better quality of life. The management, administration, and front
line employees will all have an opportunity to earn an income for their family, while contributing to their
villages at the same time. For the women of Jivika, this may be the first real opportunity to bring in greater
income and therefore help better their family. The combined employment and better quality of life will help the
people and cities of India on the path of future growth.

JivikaBusinessPlanFINAL

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