Reaching the Last Mile

With
Integration of Digital Technologies
India Lives in Villages - Bapu 26th May 16
 Where India resides ?

8% 8 Metro
5 Million +

5% 32 Cities
70 Million HH
Urban 31%

1 Million +

3% 39 Towns
0.5 – 1 Million

16 % 4300 Peri Urban

0.5 Million –
10,000
164 Million
Rural 70%

69 % 593000 Villages < 10,000

HH

641000 Villages

Source : Census of India & Forrester Analysis

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 Bharat
90% 70%
Population Trends GDP Consumption
80%
60% 60%
70%
52% 50%
60% 48%
50%
43%
50% 42%
38%
40% 40%
33% 36%
30% 30% 30% 27%
30%
30%
26%
20% 24% 26%
20% 28%
10% 20%
22%
0% 16%
1996
1960
1963
1966
1969
1972
1975
1978
1981
1984
1987
1990
1993

1999
2002
2005
2008
2011
10% 14%
Agri& Allied services Industry Services

Rural Urban 0%
1950 -51 1960 - 61 1970 -71 1980 - 81 1990 - 91 2000-01 2013 - 14

 Population share down From 82% to 68%. 74% Census 2011

56%
 Contribution of Agri has reduced 80% 51%
60%
drastically 40%
 50% of overall labour is still dependent on 20%
agriculture. 0%

 74% HH below 5K monthly income % HH below 5K % HH without

monthly land
% of manual &
casual labour
Income

3
India Ranks 32 among highest % of pop residing in Rural Areas
 Unattended last mile

High cost of products or

No of % of total services delivery.
Population
villages villages
Lack of Infrastructure access.
Less than 200 96,855 15%
Lack of understanding of
200-500 136454 21% village ecosystem

501-1000 156737 24% Limited Cash Management

facility
1001-2000 140751 22%
Deprived of Financial literacy
2001-5000 87,707 14%
Fragmented demand of rural
5001-10000 22,363 3% consumers

Total no of villages 640,867 100% Unavailability of skilled local

talent

Facts:
17% of the villages accounts for 50% of rural population and 60% of rural wealth

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 Macro Picture on Rural India
How Rural Economy is prospering?

2010 Per capita Income

per day (Rs.) 2020
50 > Rs. 300 150
per Day

Rs. 60- 500

350
299/per day

< Rs. 60
400 250
per day

Rural Population (million) 800 900

Source : Bird of Gold, MGI & MART Knowledge Centre

Rising Rural affluence and growing consumption - result in the emergence of a new market.

By 2020 avg age of India will be 29 yrs.

Government vide MNREGA, FI – Creating change

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 Rural : Opportunity or Challenge

Two Whlrs – Rural FMCG –

Urban - 50% Currently - USD 15 Billion
Rural - 50% By 2025 - USD 100 Billion

Urban ~ 850 towns Rural ~ 6.41 lac Villages

Urban ~ 63% GDP Rural ~ 37% GDP

 20,000+ MNC’s are operating in emerging economies.

 Western multinationals expect to find 70% of their future growth in
emerging economies - 40% of this is in China and India - Economist

How to reach?
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 E Education

Is Technology a Solution

Payment
Banks

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 Technology in Rural ?

Assist people to utilise tools, resources &

systems to solve problems and to enhance
control over the natural & made
environment in an endeavour to improve
the human condition – UNESCO, 1985

Hesitation Usage

Unknown Mine

Reserve Aspiration

Skill Habit

Wifi @ Villages
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 Transformation takes time – Internet Penetration

Mobile Internet 2015 Growth

100% 93%
90%
80%
71%
70% 9% penetration
60%
50%
IAMAI
40%
30%
20%
10%
0%
Urban Rural

 India Ranks 139 among Internet Telecommunications –

Penetration.  Exposure & Access of users
 Last 3 yrs CAGR = 26%  Improve the function of markets,
 Reduce transaction costs,
 Penetration is 15.1 %
 Increase productivity

9
Hero Motors Confidential Document
Digital Literacy Once printed, its uncontrolled
 Possible enablers

Technology
• Social • Financial •Create • Develop •Logistics • Cost
Inclusion Literacy Loyal Skills Solutions Effective
Entreprene
urs

Awareness

“Include Government” or “Reach Together”

Technology Digitization Technology

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 Social Inclusion

Hero Cycles – Empowering ASHA

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 Accredited Social Health Activists

ASHA is rural Health worker appointed by NRHM, GOI

What they Do ?
Motivating women to give birth Working conditions Transport
in hospitals, • Lack of proper transport.
• Adverse working conditions
like no electricity, no clean • Walk most of the times -
water and sanitation issues tedious & time consuming
Bringing children to
immunization clinics,

Encouraging family planning

(e.g., surgical sterilization),

Treating basic illness and injury

with first aid,

Keeping demographic records,

Remuneration Working Time
• Mainly Incentive • Mostly day time.
Driven. • Emergency requirements at
Improving village sanitation night and adverse weather
• Minimum fixed income
in few states conditions are also handled.

Mothers Child Health Basic

Health Care Care
Counseling
Medical Care Ensures Hygiene to India’s Future

Hero Cycles 2
1 Happy ASHA = 1000 Happy Rural Households
 Empowering ASHA – Free Bicycle Distribution

ASHA ensures good health of people - her good health is extremely important.

Cycle Distribution @ Chahniya Block, Chandauli, UP Cycle Distribution @ Malihabad Block, Lucknow, UP

Presence of Senior Govt officials like – Health Minister, Principal Secretary, District Magistrate, Chief Medical Officers

Hero Cycles
Activity Funded by corporates 3
 “Specially Designed Cycles” – Changing Life of ASHA

Key Features -
Umbrella Holder
ASHA worker’s Mobile Holder  Hub Dynamo to generate
Kit bag Electricity on pedalling.
Head Light  Head Lights – to travel at night for
emergency requirements of
patients.
 Shock proof Mobile Stand &
Charger – Charge while riding.
 An Umbrella Holder.
Internal Hub Dynamo  Water Proof Kit Bag.

Hero Cycles 14
 Impact on ASHA

ASHA Empowered by getting free bicycles and worked towards betterment of Rural Lives

15
Hero Cycles
Data Collection & Impact assessment by using digital Tools
 Benefits to the Funding Organization

- On Chain Cover
Branding on Cycles - Everlasting Brand
Presence

- At a prominent venue.
Event Management - Engaging Govt Officials
- Approx 500 people in
200 cycle Distribution
- On Stage Prominent
Branding at Event Locations.
- Across Venue
- Covered by Media

- Health Minister
Presence of Government - District Magistrate
- Chief Medical Officer

CSR certification & - CSR Certification letter

Impact Analysis Report issued by Govt.
;
by Govt - Impact analysis report
for CSR submission.

Hero Cycles
Hassle free CSR Implementation & effective Utilization 6
 Create Loyal Entrepreneurs

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 ABOUT CYCLE WORKS

Unemployed youth from Rural are identified

Master Mentor
Technical training
Appointed for
cum
supporting technically
Entrepreneurship
and guiding them in
Program
sales of bicycles

Loan assistance for Candidates are trained

setting shop and in cycle assembly,
Branding support is repair, servicing and
provided by Hero Candidates successfully selling of bikes
completing the training
are provided
certification by Hero

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 Few Training Pics

Mostly from sub 2K population Villages

Objectives -
Entrepreneurial Loans are being
o Social –
provided to establish shops
• Employability generation
Mapped to nearest dealer for o Organisational –
engagement & product procurements • Enhanced distribution
• Increase in Volumes
Aimed earnings of Rs 3.5 K per month

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 Reach Together – Co create

Product Common
Reach Govt
& Distribution
Services Network

Provide Monitor
Access to info using IT

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THANK YOU

nchandra@herocycles.com

www.herocycles.com Confidential Document

Once printed, its uncontrolled
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