Top 10 Social Enterprises: India. Vibhu Arya, Managing Editor, Think Change 2012

Size: px

Start display at page:

Download "Top 10 Social Enterprises: India. Vibhu Arya, Managing Editor, Think Change vibhu@thinkchangeindia.org 2012"

Noel Walker
8 years ago
Views:

1 1 Top 10 Social Enterprises: India Vibhu Arya, Managing Editor, Think Change 2012

2 2 What is a Social Enterprise? Nothing fancy, it may not even call itself social A Social Enterprise could be engaged in any business activity fulfilling any need (see right: Maslow s need hierarchy). E.g. Entertainment, Nutrition, Sanitation, Communication, Livelihoods, Transportation, Education, Training, Financial Inclusion. Impact ranges from a pilot serving 10 people to serving 1 billion people. Focused on the underserved/unserved segment Profit is not the only motive. Social Entrepreneurs earn respect of the community.

3 3 Criteria for Selecting the Top 10 Enterprise must be the clear leader in the category. Serves the bottom of the pyramid. Scaled Up and Not a Forever Pilot. i.e. impacts at least 1 Million clients, directly/indirectly Does not operate only on grants. Covers its costs and ensures a small surplus. Man Hours Spent On Operations/Field > Man Hours Inside Conference Halls & Importantly, Wows Clients Creates Employment Pays statutory taxes & levies, follows the law, is driven by values i.e. net-net, a responsible corporate citizen Ensures a Double+ Bottom-line Scaled Up Viable Wows Clients Responsible Corporate Citizen

4 4 Sector: Renewable Energy, Health, Sanitation, Entertainment Enterprise Name: Indian Traders + Chinese Manufacturers + No Ivy League Case Studies, No Awards. Plain Demand=Supply; Thanks to Chinese Manufacturers+ Indian Traders = Indians at the lower end of SEC Pyramid are availing essential products which a decade earlier were luxury. A Regular watch which costed $20 in 1995, now costs ~$5. A DVD player which costed ~$500 in 2000,now costs $20. A Solar Rechargeable Lanterns costs ~$20. A Water Filter $20. A Mosquito Net $5. A Mobile Phone now begins at $15. Products: Solar Rechargeable Lanterns, Mosquito Nets, Water Filters, DVD Players, Radio Sets, Watches USP: Chinese Manufacturers, Indian Importers and Alibaba.com made these products accessible to the common man. Target Clientele: Sec D & E Impact: 500 Million+ people Status: Privately Held, Anonymous

6 Million Employees Product: Passenger and Freight USP: Inflation Resistant Passenger Fares.

5 5 Sector: Transportation Enterprise Name: Indian Railways ~15,000 trains cover a distance equaling three & half times the distance to moon Railway Stations covering entire India. 1.6 Million Employees Product: Passenger and Freight USP: Inflation Resistant Passenger Fares. Freight subsidizes the passenger fare. Lifeline of India. Target Clientele: Sec C,D & E Indians Impact: Carries 13 million passengers & 1.3 million tones of freight daily Status: Government of India Owned

and medium enterprises. USP: 90% of JustDial database comprises of micro, small and medium enterprises.

6 6 Sector: MSME s Enterprise Name: Just Dial Just Dial is a local search engine with listings of over ~7.5 million products and service providers Products: Local Search via Phone (Voice and SMS), Internet Efficient Advertising channel for micro, small and medium enterprises. USP: 90% of JustDial database comprises of micro, small and medium enterprises. Target Clientele: Sec B, C, D & E Impact: Covers 240 cities and receives 250,000 calls daily with over 200 million annual searches, 200,000 advertising campaigns ALL focused on MSME s Status: Privately Owned, 2013 IPO Candidate.

7 7 Sector: Vocational Training Enterprise Name: JetKing InfoTrain 130 Pan India Centres Product: Job Oriented IT Networking & Hardware Training USP: $150-$200/month Job Guarantee Target Clientele: 10+2 pass outs from SEC D & E Impact: Over ~ 0.5 Million students trained and placed Status: Profitable, Traded, Public Listed Company

8 8 Sector: Communication, Savings and Remittances Enterprise Name: Indian Post Indian postal service has the most widely distributed post office system in the world with total of 155,618 post offices of which 90% are in rural areas. Products: Postal Services: Mail and Freight Remittance facilities : money orders & postal orders No frills banking and insurance facilities 0.6 Million Employees USP: Frozen in TimeTariff. Freight subsidizes the postal tariff. Postcard (see right) costs Re 0.5 ( i.e. for a $1 send 100+ postcards) Made it to Ripley s. Target Clientele: Sec D & E Impact: 200 Million+ people who access Postal Banking Services. Status: Government of India Owned

9 9 Sector: Entertainment & Education = Edutainment Enterprise Name: Prasar Bharati (Broadcasting Corporation of India) 90% of India receives Prasar Bharati (DoorDarshan i.e. TV) programmes through a network of nearly 1400 terrestrial transmitters whereas 95% receives All India Radio programs through 277 stations in 23 languages and 146 dialects. Products: Programs on entertainment, education, agriculture, rural development, environment, social justice, health and family welfare and science and technology USP: Safeguards the Indian citizen s right to be informed freely, truthfully and objectively on all matters of public interest, national or international, and presenting a fair and balanced flow of information including contrasting views without advocating any opinion or ideology of its own. Target Clientele: Sec D & E Impact: Over 1 Billion Indians Status: Government of India Owned

10 10 Sector: Livelihoods & Transportation Enterprise Name: $800, 80Km/L, 100 CC Motorcycles Co s With non existent city public transport systems, 100 CC motorcyles provide affordable passenger and cargo transportation services to over 500 million Indians. Product Features: Price: $800 Mileage: 80 km/litre Seating Capacity: 2 Official, 2-6 unofficial Over 5 Million Employees (Direct/Indirect) USP: 80 kilometers to a liters / can seat 2-6 Target Clientele: Sec C, D & E Impact: Over 100 Million+ motorcycles on Indian roads with ~8 million motorcycles sold/year. Status: Profitable, Traded Public Listed Companies

11 11 Sector: Health & Nutrition Enterprise Name: Tata Salt Tata Salt is a super-refined, vacuum-evaporated iodised salt produced by Tata with a 65 percent market share in the national branded salt segment. It sells an average of 50,000 metric tons per month and is available at over 1.2 mm outlets providing a safe alternative to Rock Salt. Products: Salt, a healthy alternative to Rock Salt. 0.6 Million Employees USP: Amongst India s most trusted brand. Target Clientele: Sec A,B,C,D & E Impact: Consumed by nearly 40 million households each month Status: Profitable, Traded Public Listed Companies

12 12 Sector: Micro Credit Enterprise Name: 200+ Indian Microfinance Institutions (MFI s); Bank-SHG India has the world s largest Microfinance Industry serving over ~50 Million Indians. The Government has finally recognized its potential with several measures announced & planned to build a truly enabling legislative and policy environment Products Microcredit USP: Effective pricing lower than banks. Target Clientele: Sec C, D & E, both Urban and Rural Impact: 75 Million+ clients. Status: Privately Held to Public Companies

13 13 Sector: Catalyzing Innovation & Social Enterprise Institution Building Enterprise Name: Aavishkaar 21 st May 2012, SEBI notified the word social venture fund. Aavishkar has been social venture investing for over a decade, catalyzing innovation at the bottom on the pyramid. Products: Venture Capital Investments focused on seven key sectors: Agriculture and Dairy, Education, Energy, Handicrafts, Health, Water and Sanitation, Technology for Development and Microfinance and Financial Inclusion USP: Aavishkar created the category of social venture funds with several new social venture funds being raised. Target Clientele: Portfolio Companies target Sec D & E clients Impact: Collectively Aavishkar portfolio companies can impact over ~25 Million+ people directly/indirectly Status: SEBI Registered Venture Capital Fund.

14 14 Sector: Communication & Livelihoods Enterprise Name: Prepaid Mobile Phone Service Operators Indian Mobile Phone Operators are brave. They face the lowest ARPU s and the muddiest regulatory /policy environment, globally. The prepaid mobile phone services customer is king. Products Free Incoming Rock Bottom Tariff Rock Bottom Tariff USP: 1 Paisa per Second Tariff & India s unique missed call technique of communicating. Target Clientele: Sec C, D & E Impact: 800 Million+ people access Prepaid Mobile Services for communication and facilitating business. Status: Privately Held to Public Companies

15 15 Vibhu Arya is a consultant in the impact investing, microfinance and branchless banking space. vibhuarya@gmail.com Formerly, The ShakespeareWalla Mirage At The Bottom Of The Pyramid The Three Witches of Microfinance

The total net additional subscribers of 2006 excluded the subscriber base of 1.359 million as of end of 2005 acquired from Peoples.

The total net additional subscribers of 2006 excluded the subscriber base of 1.359 million as of end of 2005 acquired from Peoples. BUSINESS REVIEW In 2006, by seizing favorable market opportunities, the Group further expanded its subscriber base, implemented brand management, enhanced sales and marketing efficiency and innovated its