148
S. Mishra and K. Vijaya Lakshmi
During the study period, appreciable results in filter adoption rates were obtained
in rural Bundelkhand with a 13% penetration in 3 months (among 3216 no. of households), as compared to Delhi with only 1.6% success. As most of these filters need
filter media replacement periodically, the role of supply chains is quite critical in
supplying replenishments and not just one-time sales. Hence, the model can become
unsustainable if the supply chains function erratically. Therefore, the filter manufacturers are expected to build closer tie-ups with supply chains and provide oversight
on distribution channels for sustaining and expanding their market outreach among
vulnerable populations.
The Model
To overcome the challenges of recruiting individuals as LEUs, the presence of a strong
local NGO was considered as a critical factor for the selection of a location during
the pilot rollout in Bundelkhand. Sumitra Samajik Kalyan Sansthan (SSKS) was
selected to enhance the outreach of services to the community. Also, the confidence
of the community in the local NGO would serve as a driver for behaviour change
(Mishra 2014). Based on our experience during the Delhi roll out, behaviour change
in the community is an essential component for wider dissemination of safe water
services especially as these services are often not prioritised by the BoP. SSKS was
also involved in selecting and providing technical and institutional support to the
SHG.
The model is centered on the involvement of Jai Shankar Swayam Sahayata
Samooh, a local woman Self-Help Group (SHG) in the role of the LEU. It was
strategized that one entity (the identified SHG) would undertake a long-term business initiative and be the driving force in the identified geographical domain. It will
leverage the efforts of local entrepreneurs, who can promote the filters in their available time to generate some extra income whenever and wherever possible (Fig. 12.2).
Tata Chemicals enabled the SHGs to procure the filters at a lower rate of Rs. 839,
as the cost of the distributor was eliminated in this model. In one of the models, the
filter was sold at the market price of Rs. 999 to the end customers, leaving the SHG
with a profit of Rs. 160. An alternative model was implemented; wherein local shops
were engaged with SHGs. Filters were also sold to these shopkeepers at a rate of Rs.
899. This resulted in an Rs. 60 profit to the SHG and an Rs. 100 profit to the local
shopkeeper for each filter sold.
For widespread dissemination of safe water services among the community, in
addition to upfront payment options, the model considers microfinancing options
essential to overcome the financial barriers. Under microfinancing, the interested
individuals from the target areas were provided with a loan to cover the initial instalment of Rs. 500 from the SHG for booking of the filter. This amount was either
leveraged through SHG funds or Rashtriya Mahila Kosh fund, which was reaching
the SHGs through the active intermediation of SSKS. The remaining amount of Rs.
499 was given by the customer at the time of procurement of filter. The amount of
Rs. 500 leveraged by SHG to the customer was repaid to SHG within 1–3 months.
The SHG charged interest at the rate of 18% for the loan. The model follows similar
lines as the delivery model for Delhi roll out for replacement of filter bulb made by
S. Mishra and K. Vijaya Lakshmi
During the study period, appreciable results in filter adoption rates were obtained
in rural Bundelkhand with a 13% penetration in 3 months (among 3216 no. of households), as compared to Delhi with only 1.6% success. As most of these filters need
filter media replacement periodically, the role of supply chains is quite critical in
supplying replenishments and not just one-time sales. Hence, the model can become
unsustainable if the supply chains function erratically. Therefore, the filter manufacturers are expected to build closer tie-ups with supply chains and provide oversight
on distribution channels for sustaining and expanding their market outreach among
vulnerable populations.
The Model
To overcome the challenges of recruiting individuals as LEUs, the presence of a strong
local NGO was considered as a critical factor for the selection of a location during
the pilot rollout in Bundelkhand. Sumitra Samajik Kalyan Sansthan (SSKS) was
selected to enhance the outreach of services to the community. Also, the confidence
of the community in the local NGO would serve as a driver for behaviour change
(Mishra 2014). Based on our experience during the Delhi roll out, behaviour change
in the community is an essential component for wider dissemination of safe water
services especially as these services are often not prioritised by the BoP. SSKS was
also involved in selecting and providing technical and institutional support to the
SHG.
The model is centered on the involvement of Jai Shankar Swayam Sahayata
Samooh, a local woman Self-Help Group (SHG) in the role of the LEU. It was
strategized that one entity (the identified SHG) would undertake a long-term business initiative and be the driving force in the identified geographical domain. It will
leverage the efforts of local entrepreneurs, who can promote the filters in their available time to generate some extra income whenever and wherever possible (Fig. 12.2).
Tata Chemicals enabled the SHGs to procure the filters at a lower rate of Rs. 839,
as the cost of the distributor was eliminated in this model. In one of the models, the
filter was sold at the market price of Rs. 999 to the end customers, leaving the SHG
with a profit of Rs. 160. An alternative model was implemented; wherein local shops
were engaged with SHGs. Filters were also sold to these shopkeepers at a rate of Rs.
899. This resulted in an Rs. 60 profit to the SHG and an Rs. 100 profit to the local
shopkeeper for each filter sold.
For widespread dissemination of safe water services among the community, in
addition to upfront payment options, the model considers microfinancing options
essential to overcome the financial barriers. Under microfinancing, the interested
individuals from the target areas were provided with a loan to cover the initial instalment of Rs. 500 from the SHG for booking of the filter. This amount was either
leveraged through SHG funds or Rashtriya Mahila Kosh fund, which was reaching
the SHGs through the active intermediation of SSKS. The remaining amount of Rs.
499 was given by the customer at the time of procurement of filter. The amount of
Rs. 500 leveraged by SHG to the customer was repaid to SHG within 1–3 months.
The SHG charged interest at the rate of 18% for the loan. The model follows similar
lines as the delivery model for Delhi roll out for replacement of filter bulb made by