Shakti is a proposed rural retail chain and microfinance business that aims to provide financial services and market access to rural poor in Gujarat, India. The business will form self-help groups and provide microloans, retail products, and skill training. It plans to establish a three-tier rural retail structure of village, block, and district-level service centers to serve a target market of low-income households. The entrepreneur has over 10 years of experience in microfinance and rural development. Financial projections estimate the business will become profitable within 3 years and serve over 9,000 active clients within 5 years.

1. Shakti: Rural Retail Chain Swadesh Kumar Saxena Startup Srijan Microfinance Business Plan Competition Final Round Presentations, July 3 rd , 2008 Please insert your logo here

2. Overview Entrepreneur’s profile Business Proposition Financial Analysis Management and Human Resources Please insert your logo here

3. Entrepreneur’s Profile Team: Ms. Darshana Bhatt: She is social work graduate from S.P.University and have more than 7 years experience of Micro Finance, SHG training, income generation activities and establishing a NGO. She is working in Dahod and Panchamahal region since last 7 years in development sector. A team of seasoned experienced dedicated professionals, academicians and practitioners from reputed institutes with help of dedicated experienced field staff will implement the idea. Please insert your logo here Name: Swadesh Kumar Saxena Academic qualification: PGDRM(IRMA),LLB More than 4 years experience of Micro Finance, Fund raising,relathionship building, marketing, consultancy, SHGs,Income generation activities, trainings, rural livelihood More than 3 years experience as an agri entrepreneur Good experience of establishing unit from the scratch and giving strategic direction conveyed through policies & corporate objectives

4. Business Proposition Please insert your logo here SHAKTI is an innovative integrated marketing concept with group based approach SHAKTI is creating linkages between supply and demand SHAKTI is creating channel up to BOP

5. Business Concept Identified Problem “ Poor are unable to access financial services and quality market. They are unable to develop their skills in competitive economy.” Solution: SHAKTI: Rural Retail Chain Shakti will provide micro finance and financial services to poor Shakti will provide gateway to access efficient market for purchase and sale of quality goods & services to poor SHAKTI will develop skills of poorest of poor and landless labors and link them with IG activities in competitive economy Services through innovative distribution channel Shakti Seva Kendra (SSK) up to village level Please insert your logo here

6. Products Fee Based Research and consultancy Knowledge dissemination 8 Fee Based Remittance ,rehabilitation, health, child care etc. Migrant support 7 Fee Based Market Linkages, Micro Finance Fee Support for setting up production units NABARD/ZP Training for income generation Poorest of poor services 6 Fee (margin) Saplings selling Fee (margin) Nursery Development Environment Development 5 Fee (margin) Trading of vegetables Fee (margin) Trading of agri commodities Fee (margin) Trading Trading/Market linkages 4 Fee (margin) Food joints with retail shops Fee (margin) Mobile Van Fee( margin) Retail Marketing Retail/Market Linkages 3 Fee Based Technical Input to farmers Fee Based Agro Input supply Agriculture Promotion 2 Interest Urban Microfinance Fee Based Fee Based Financial services Interest Micro Finance NABARD/ZP SHG/FC formation/Training Micro Finance 1 Revenue Type Activities Broad Areas S.No.

7. Products and services Commodity investment Personal loan Equity investment Loan against agri commodity Financial awareness Trading of agri commodities Savings(BC Model) Education Loan Education Cooked food Tiffin Investment MF/FDs etc. Housing Loan Health awareness FMCG Insurance Consumer Loan Income generation trainings Agriculture inputs Remittance Enterprise Loan Non commercial Commercial activities Fee Base Fund base Non Financial services Financial Services

8. Methodologies We will form JLGs/ FCs in rural areas. One SSK(V) will take care of at least 8 JLGs and 2 FCs FDO will perform the credit and retail function at SSK(V) level. SSK(B) will be establish at block level. SSK(D) will be establish at district level. Mobile van will do the retail function in weekly haats, festivals etc.

9. Areas of Operation SHAKTI will start its operation in DAHOD district of Gujarat state. Dahod is border of Gujarat, M.P. and Rajasthan. Each district operation will have at least 80 SSK(V), 2 SSK(B) and 1 SSK(D). Every year SHAKTI will add one more district in its operation. In 5 th year of operation SHAKTI will transform in to NBFC and it will make its pan India presence with strategic manner. SHAKTI believe in horizontal and vertical expansion Please insert your logo here

10. Target Market and Customer Base Target Market Target market will be rural and semi urban area. Micro Finance Target clients will be Monthly average income of less than INR 5000 in urban area and in rural area INR 3000 . Socially help less, poor and power less but want to create their self employment. Retailing Lower income and middle income households Agri services Farmers having land holding less than 5 acre Please insert your logo here

11. Areas of Operation Please insert your logo here SHAKTI

12. SWOT Analysis Threat Rainfall scanty/excess Migration Changes in legislation for MF Pressure to reduce interest rate Decreasing trust among people Opportunity Growing retail sector High demand Awareness about micro finance and SHGs Border of three states Rajasthan, MP and Gujarat Traditional art & handicrafts rich state Rural area neglected till now Weakness Start up Lack of quality human Resources Increasing unemployment at BOP Slow agriculture sector growth Increasing cost of agri inputs Low literacy rate in operation area Competition Strength Experienced and dedicated Management Innovative Business Model Experienced & dedicated Team Good systems & robust MIS Low operation cost Wide range of product and services Community participation and development Network and support from reputed institutions Professional association Strong brand flexibility of Products and services Simple procedures of Operations Market research capacity

13. Social Impact Every Year at least 2400 poor families will get cheaper loan, good financial services, good quality low cost agriculture inputs, good quality household provisions with low cost, market prices to their agriculture produces Every Year at least 200 migrant families will be served by SHAKTI Every Year at least 500 families will be trained for income generation activities Every year at least 2400 tree plantations will be promoted by SHAKTI Every year 800 farmers will be linked to good agriculture practices Every year SHAKTI will add 40 new villages in to its operation area Every Year at least 50 unskilled people will get direct wage employment Land less labors will get opportunity to become agri entrepreneur Poorest of poor will be linked to income generation activities SHAKTI will disseminate knowledge and sensitize urban people to purchase and promote rural produces Please insert your logo here

14. Financial Analysis Please insert your logo here

15. Growth Projections 32320000 32070000 25620000 17670000 10000000 Working capital for Micro Finance 100000 200000 200000 200000 200000 Debt requirement 14 18 23 18 14 Debt equity ratio 18 14 12 10 11 ROA (%) 2466962 2458091 1894110 902155 654200 PAT 6 29 50 110 CAGR(%) 21500000 20300000 15750000 10500000 5000000 Loan Out standing 2600 2600 2400 2400 2200 Average loan size 9600 9600 7200 4800 2400 No of members 9120 9120 6840 4560 2280 NO of Active clients 2 2 1 1 0 Number of SSK(D) 4 4 3 2 1 Number of SSK(B) 160 160 120 80 40 Number of SSK(V) 5th Year 4th year 3rd Year 2nd Year 1st Year Particulars

16. Growth Please insert your logo here

17. Management and Human Resources Please insert your logo here A team of seasoned experienced dedicated professionals, academicians and practitioners from reputed institutes with help of dedicated experienced field staff will implement the idea. We have HR policy to retain best talent of industry

18. Management and Human Resources Please insert your logo here Business Planning Business Planning 16 Accounts & record maintenance Accounts & record maintenance 15 Networking & coordination of SSK(B) Networking & coordination of SSK(V) Business Planning 14 Brand Building Brand Building Accounts & record maintenance 13 Awareness Awareness Brand building 12 Networking Networking Awareness creation 11 Identification of new business Identification of new business Production of goods 10 Retail store& Food chain Retail store Identification of new business 9 Conduct Training Training arrangements Need identification for training 8 Financial services hub Financial services hub Financial services demand creation 7 Agri commodity procurement& trade Agri commodity procurement Agri commodity procurement 6 Agri input demand creation& supply Agri input demand creation& supply Agri input demand creation 5 Supply goods to SSK(B) as per demand Supply goods to SSK(V) as per demand Retail demand creation 4 Loan application forwarding Loan application forwarding Loan application forwarding 3 Installment collection Installment collection Installment collection 2 Loan disbursement Loan disbursement Loan disbursement 1 Task to be perform PO, IC AM (retail), AM (credit), PO, IC AM (Credit), AM (Retail),IC, PO Monitoring& assistance PO AM (retail), AM (credit) FDO Immediate monitoring SSK(D) manager SSK(B) manager SSK(V) manager (Part time) Managed by SSK(D) SSK(B) SSK(V)

19. Organogram Board of Directors Advisory Board Director PO AM(Credit) AM(Retail) FDO 1 SSK(B) FDO 4 SSK(V)M(1) SSK(V)M ( 12) Head Accounts Accountant s Internal Control

20. Innovations Low cost three layer retail structure SSK(V) SSK(B) SSK(D) Credit functions will be exclusively manage by experts E commerce and e banking Empowerment of poor and land less

21. Thank You We welcome discussion and suggestions Contact us Swadesh Kumar Saxena Email: [email_address] Email: [email_address] Website : http://shaktimicrofinance1.googlepages.com Mobile No: 09701988895 / 09974166450