Retail B to B model in Micro Finance Institutions in India About Micro Finance In the development paradigm, micro-finance has evolved

as a need-based policy and programme to cater to the so far neglected target groups (women, poor, rural, deprived, etc.). Its evolution is based on the concern of all developing countries for empowerment of the poor and the alleviation of poverty. For the target group members, the most obvious benefit is that micro-finance programme would actually succeed in enabling them to increase their income levels. Furthermore, the poor are able to access financial services which previously were exclusively available to the upper and middle income population. Finally, the access to credit and the opportunity to begin or to expand a micro-enterprise may be empowering to the poor, especially in comparison to other development initiatives which often treat these specific target group members as recipients. Micro Finance In India India with a population little over 1 billion has its 70% people staying in rural or semi urban areas with almost 260 million people living below poverty line. Approximately 75 million households need microfinance. Of these, nearly 60 million households are in rural India and the remaining 15 million are urban slum dwellers. The current annual credit usage by these households is estimated to be Rs. 495,000 million. As in the past, poverty and rural development remains the daunting challenge for India even today. The Marginalization of rural/urban poor from the mainstream society is primarily caused by the absence of the three forms of Capitals from the Poor, namely Material Capital, Human capital (Education and relevant skills) and Social Capital (Local Organizational settings, democratic system, protection of Human rights). Most of them are landless or marginal land owners dependent upon traditional farming practices. They have to rely heavily upon the Monsoon. In absence of proper education and skills their employability in non-farming jobs is very low. The traditional ways of resource allocation (Public Distribution System) has not fully succeeded in meeting its objectives. Corruption has always remained an inseparable part of such systems. Microfinance addresses the shortage of physical capital amongst the Poor and thus directly affects the creation of Human Capital for the Poor. In this era of corporate social awareness Microfinance not just substantiates the claim of corporate citizenship but it also extends the reach to this marginalized segment of the society. Micro Finance Methodology Company operates under the Gramin model with suitable adaptations. The customers would be formed into groups consisting of 5 members and 3 to 6 groups would be clubbed to form a center. Each group and center would have one leader. The groups would be joint liability groups with each member of the group guaranteeing the loan repayment of the other members of the group.

Micro Finance institution B to B model: To provide quality Fruits & Vegetables to our members who are involved in Retailing of Vegetables at competitive price and in their neighbourhood at convenient time. Target Customer: All members who have availed loan from Micro Finance Companys and are into retailing of fruits and vegetables are the target customer for B to B product. Benefits to Customer Customer gets Price on par with Wholesale market and hence reduced cost for procuring goods Customer gets goods at the vicinity of their residence. Savings in Travel cost Savings in Transportation Cost Comfort of getting quality product at a convenient time

Report will be on how can a Micro Finance Institution benefit there customers in B to B model covering two aspects a. Maximising profits for the members and enhancing there quality of living. b. Generating profits from the model for the company as well. A detailed model will be submitted which will tell us how model operates and the process involved. References: 1) 2) Various MFIs companies website Google

Presented by:

1) 2) 3) 4)

Ashutosh Kumar Vineet Kumar Goyal Shailash Avasthi Shailendra Sharma

(EEPM-04-004) (EEPM-04-046) (eMEP-08-102) (EEPM-04-039)