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Motivation
Two Tracks
Cluster Center Operational Model
Training logistics
Student financing
Benefits to village women
Market for DESI_MANTRA Program
Profile of land less labourers: potential micro-entrepreneur

Potential Business Administrator profile
Financial Model - basic assumptions

Financial Model-Program wide
Outside funding sources

Triple Bottom Line Matrix
Next steps

Future opportunities
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Motivation

  • Empowering Rural Women

  • Personnel

  • DESI power plants installed for the 100 villages EmPP project require skilled people for administration and people with basic technical and business skills to run micro-enterprises that use the plant’s electricity and make it profitable

  • Currently, villagers lack business or technical skills

  • Men leave the village for the cities once they are trained because they can make more money there

  • Women who are trained prefer to stay in village with their families

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Two tracks

Train women and men in Bihar to carry out administration of power plants and start their own  micro-enterprises

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Cluster Centre Operational Model

  • 10 Cluster centers with 10 villages in each cluster

–Located in a larger village with central location

–Cluster centers will be co-located with the town’s power plant

–Facility will include an office, a classroom, one vehicle and several computers

  • Cluster centers activities:

Review student’s applications to the DESI_MANTRA program,

–Manage the class scheduling, accounting, and administration of the DESI_MANTRA program for    its 10 villages,

–Conduct the training for the DESI Business Administration Track in its facility, and

–Dispatch trainers to the 10 villages for the micro-enterprise training

  • DESI_MANTRA corporate office will be located in Araria

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Training logistics

•Business administration training

–Will be held in the cluster center

–3 hours per day, 6 days/week for 6 months

•Micro-enterprise training

–Will be held in local villages

–3 months of business training will be conducted by trainer from cluster center facility

–Cluster center trainer will travel to local villages until people in the villages are qualified to train others

–2 week training internships will be conducted by local micro-enterprises, especially DESI_MANTRA graduates

–For new village micro-enterprises, student will travel and train up to 4 weeks with the equipment manufacturer

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Student financing

•Loans

–Village-based lending groups

•BOVS (power plant cooperative)

•GRID (power plant cooperative)

•Saki Saheli (women’s support group)

–Micro-finance institutions

•DESI_MANTRA plans to partner with a MFI lending organization to facilitate loan to its students

•Currently difficult for villagers to obtain because they often require a business plan and credit history

•Pay in kind

–Train the Trainer – students pay for tuition by training others

–DESI Power Scholarship – students receive full tuition amount in exchange for a 3 year work commitment to DESI Power

•Profit sharing

–In exchange for training, students agree to give MANTRA a percentage of profits from their micro-enterprise

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Benefits to village women

•Women gain financial and personal independence

•Women learn business skills they need to work in an office administrative job or run their own micro-enterprise

•MFI Loan qualification

–They will have a business plan when they finish training

–DESI_MANTRA will set aside a portion of their tuition loan if obtained from village-based lending group to pay them as a stipend throughout training

–Students use stipend to directly pay back portion of their student loan building credit history

–Students are very close to meeting MFI loan requirements by the time they finish their training

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Market for DESI_MANTRA Program

•2 distinct market segments

–Land less laborers: Potential Micro-entrepreneur

–Potential Business Administrators

•Profile, training needs and willingness to pay are very different for each segment

–Price discrimination is possible

–Segments will be attracted to different tracks

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Profile of land less labourers: potential micro-entrepreneur

Land less labourers: potential Micro-entrepreneur

–Lives in a rural village

–Likely to be illiterate or with very little education

–Works up to 15 hours per day

–Earns approximately 50-70 rupees per day for 6 months out of the year

–Willing to pay 600 for a 6 month training course

–Time is very valuable; she has very little time to devote to training

–Wants training so that she can start a business to supplement the family income

–Market size of over 100 women per village per year  with an average village size of 2000 people

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Potential Business Administrator profile

Potential Business Administrators

–Lives in semi rural town

–Completed 12+ level of education

–Little work experience, might be a teacher

–Willing to pay 5000 rupees (maximum) for 6 month training course

–Wants training so that she can have an office job

–Market size of over 1000 per town per year

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Financial Model - basic assumptions

 •Dual Tracks

–The model assumes that training is broken down into two distinct training tracks; Micro-Enterprise (ME), and Business Administration (BA), with bio-business skill training included in the ME track.

•ME Track Training

–The ME track only bears the practical internship training costs for one person per specific ME within that village as that person will then act as the trainer.

•After year 1, trainers for the micro-enterprise track will come from the village itself, eliminating the transportation cost

•Villages are rolled out as each new cluster is set up. Therefore, village # 11 is rolled out as cluster #2 is set up

•Cluster centers are assumed to be in operation soon after capital is invested for that specific cluster

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Financial Model-Program wide: Outside funding sources

Outside funding sources Amount (US $) Percentage
Socially responsible financial institutions (SRFIs) 348,477 8%
Capital equipment partners (CEPs) 261,358 6%
Foundations 3,746,130 86%
Total 4,355,965 100%

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Triple Bottom Line Matrix

•In order to track and demonstrate the benefits of the DESI_MANTRA program across financial, social, and environmental categories metrics need to be put in place for each of the villages rolled out and for DESI_MANTRA as a whole

•This will be overseen by the DESI_MANTRA cluster manager and the corporate manager

 

Environmental

Financial

Social

Per MANTRA Trainee:

KGs of Biomass KW Burned vs. Diesel KW

KG carbon saved

Village Wide:

Reduction of carbon burned per capita at the village level due to the DESI plant run by DESI_MANTRA trainees

Program Wide:

Revenue Growth

CAGR

Profit Margin

Per DESI_MANTRA Trainee:

Increase in daily wages

Cost of Living/Earned Wages Ratio progress

Educational improvements measured by hours of training

Money saved buying biomass vs. diesel based electricity

Village Wide:

Increase in microfinance loans made within the villages

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Next steps

•Identify and build relationships with micro-finance institutions and small banks

•Identify and build relationships with IT companies in Bangalore for computer donation

•Work with Saki Saheli to identify first group of micro-enterprise trainees who they think will be the most successful

•Hire woman from Araria as a manager for the DESI_MANTRA program

•Begin contacting US foundations

•Set up metrics across Environmental, Financial, and Social parameters to demonstrate success at the individual, village, and program levels

•It is recommended that only one person per cluster per specialized micro-enterprise is sent to manufacturer’s training

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Future opportunities

•Training for school children

•Offer higher-level or follow on classes for which DESI_MANTRA can charge more

•DESI_MANTRA owned micro-enterprises and store

•Equity investment in trainee’s micro-enterprises for profit sharing revenue

•License the DESI power logo

•Corporate and university sponsors

•License the training program to next 100 Villages

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