You are on page 1of 17

Introduction

Sarvajal means Water For All.


We are a social enterprise that develops sustainable drinking water solutions for rural and urban populations where the quality of water is often the cause of more than 60% of common health ailments.

Our business is designed around scalable innovations, technical/process improvements, ensuring livelihoods for local entrepreneurs.
Our commitment is to make purified drinking water accessible and affordable to all. Sarvajal is incorporated as Piramal Water Private Limited.

Overview of the company


Around 200 Million people in India dont have access to pure drinking water To combat drinking water crisis in India and to find viable solutions for pure drinking water crisis Piramal Water Pvt. Ltd. was incorporated in year 2008. Quality hygienic water is not available in rural areas and if it is available than it cannot be afforded by the rural people. To address this issue company developed a social entrepreneurship model which provides pure drinking water to people at affordable price. Piramal water operates under the brand Sarvajal and it works on the franchisee model. Presently Piramal water is operating in Gujarat, Rajasthan, Maharashtra and Madhya Pradesh and it plans to expand its operations all across the country. 56500 people are having access to clean drinking water through the network of 120 sarvajal franchisees.

Business Model

Piramal water operates on the franchisee model. Company promotes rural entrepreneurship by giving franchisee to the local people of the village RO water is being made available to the people by the franchisee under the brand name Sarvajal Piramal water ensures the free maintenance of machine and free marketing assistance to help franchisee to increase customer base and to promote the benefits of clean drinking water

TECHNOLOGY USED
REVERSE OSMOSIS

Sravajal - Finance
Varying capital needs were experienced at different levels of growth. A charitable organization had funded : Research and development funds. Startup funds. Capital costs

Scale,Profitabilty,Leasing and Capital Structure:


The machinery bought involved a cash investment leading to high costs. As Sarvajal grew from 50 to 5000 machines , lease financing was the best option to save cash involvement.

Decisions Sravajal ???


Should the renegade franchisees be terminated or promoted ? Would the intellectual property withstand competition.

SMS Reporting The sarvajal team developed technology that leveraged the cell phone networks that existed all over gujarat and rajastan. The team also built in a monitoring device that sent sms messages on a regular basis to the main servers in ahemadabad. These messages would be processed by the central database.

Payment Cash management was a problem. The baseline was a once per month pre-payment. Mid-month shut downs were allowed if the allocated amount of water had already been processed.

Radio Frequency Identification Chips


Customers with RFID tagged containers or with RFID cards would be able to draw water from the reverse osmosis plant if their tag verified that their account that been appropriately pre-paid.

This was a major method to reduce costs as using this method, the machines could be left unattended.

This technology at the retail level had the added benefit of being usable to control water purchases that were made not only off-hours but also away from the RO machine altogether.

In 2011, the company made use of the cell phone coverage to establish top up of accounts as till then only cash payments were being accepted.

This would be able to reduce their book keeping and cash collection burdens.

Sarvajal Franchisees
Sarvajal has 83 individual run franchisees providing water to more than 10,000 people daily across 2 states at Rs.6 for 20Litres

Sarvajal supported its franchisees with various forms of assistance(eg. Sample water production report)

The company maintains uniform quality standards to ensure the safety of water leaving their machinery.

Issues
Price was a major issue Power was another concern

Real estate came into play


Refused or waste water seemed insufficient Expansion could be challenging for a successful franchisee Franchise law was new in india

Process
5 stage treatment process

Ground Water

Drinking Water

SARVAJAL ENTERPRISE MANAGEMENT SYSTEM ( SEMS ) Example


G4, 704020002, 44638, 2112010, 1542, 298911, 325, 443, 62,
96, 97
G4 Just completed water 704020002 Machine number 44638 Prepaid balance of water to produce in number of litres 2112010 Date 2nd november 2010 1542 Standard time ( 03:42 PM ) 298911 Machine has produced these many litres of water

E:\MBA 2012-2014\III Term\BS\CASE STUDIES\sravajal.pdf

Thanks

You might also like