* PRESENTED BY-Akash Shrivastava

* Areeba Khan
* Durgesh Kant Kourav
* Priya Dutta
* Priya Thakur
* Mitali Singh
* Satyam Shrivastava
 CONTENT
S. No. Topic

1 Context Setting

2 Introduction

3 Need and importance of clean drinking water in India

4 How the idea came into existence

5 SWOT Analysis

6 Business Model

7 Problems & their Solutions

8 Finance

9 Conclusion
Context Setting:

➢BUSINESS MODEL

➢ENTREPRENEURSHIP
 Introduction
* SARVAJAL:- Sarvajal “water for all” is developing a viable business model to
deliver core services to rural and underserved urban population. Sarvajal started
selling purified drinking water in a rural village of northwest India with a single-
unit in january 2008 and began as an independent business in August 2008.Its
establish incentives to improve clean water access in India in location where the
local and federal government war not able to provide these services.

* “THE ROOT OF THE SARVAJAL BRAND WERE IN PIRAMAL FOUNDATION”

* PIRAMAL FOUNDATION:-The Piramal Foundation was a charitable trust
established by the Indian industrialist Ajay G Piramal.Piramal was the founder and
CEO of the Piramal Group,a major chemical and pharmaceuticals manufacturing
and distribution conglomerate in India.

* Primary Goal: To get the water to as many people as possible, as cheap as possible
and guaranteed clean.
 Core Team Of Sarvajal
▪ Anand Shah, CEO
➢A Harvard College graduate
➢A social entrepreneur
➢Founder of Piramal Foundation and subsequently Sarvajal

▪ Sameer Kalwani, CTO

➢Psychology and electrical engineering graduate from University of Illinois
➢Before joining Sarvajal, he worked as a consultant at Deloitte Consulting
➢Well versed in culture and tools of the villages

▪ Anuj Sharma, COO

➢MBA in Rural Management from Institute of Rural Management, Anand
➢Been part of Pratham (NGO for Primary Education)
 ANAND SHAH, CEO

SAMEER KALWANI, CTO ANUJ SHARMA, COO

 Need of Clean Drinking Water

*Almost 2 Billion people lacked access to clean

drinking water and 3 Billion did not have piped water
*High demand for Freshwater in India (domestic,
agricultural and Industrial)
*High rate of deaths by diarrhea- Clean drinking water
could reduce this problem by 39%
*Poorly maintained piped water system
*Less water supply=demand for groundwater supplied
in tankers which lowered groundwater level.
Reasons for water problem in India

*Environmental issue – Receding

groundwater level
➢Deterioration of water quality due to
contamination
*Social issue- Low awareness about water
usage efficiency and waste disposal
*Governance issue- Inadequate and
unplanned investments in water
infrastructure
 How Sarvajal came into existence
*Piramal Foundation initially piloted the Bagar
Drinking Water Initiative in Rajasthan.
*Initial goal- Reduce contamination linked to serious
health problems in Shekhawati region.
*This pilot-testing was successful and encouraged
Piramal Foundation to provide clean water access to
other areas in need.

*And that is how RURAL FRANCHISING emerged.

Advantages of Rural Franchising

*Franchisees knew their communities

*Sarvajal were well-versed with the machines
and technology
*They have the same incentives
*Already ran other businesses so they knew
about customer relationship management
 SWOT ANALYSIS

Strengths Weaknesses Opportunities Threats

• Provide quality • Lack of awareness • Most villagers use • Competition from
drinking water . among people. unfiltered water for domestic RO plant
• Low & affordable • Environmental, social drinking. • Use of RO, UV
pricing . & governance issues . • Growing awareness purifiers were less
• Had the first mover • Cash management about benefits of because of their high
advantage. • Complications with pure drinking water. prices.
• “Franchisees knew the heat & dust , • Many untapped rural • Tricky in balancing act
commodities and electricity , input and remote territories between incentivizing
Sarvajal knew the water & theft . • Growing technology. the poor and good
machine”. • Successful franchisees performers .
• Brain Trust elected to be • Failures could lead to
independent broken of machines or
entrepreneurs. to unclean water.

OF SARVAJAL
 THE BUSINESS MODEL
Sarvajal leases its water purification technology/equipment to a local
entrepreneur who becomes the franchise owner.
The entrepreneur pays an upfront fee that represents a proportion of the cost
of the filtration unit.
Sarvajal helps these entrepreneurs mobilize finances from micro-lending
institutions to enable them to cover their share of the capital cost.
It also provides training, payment solutions, phone-based customer service,
marketing materials and sustained service and maintenance for each
franchisee.
Revenue is generated by the franchisee by selling clean water to the
underserved consumer at an ultra-affordable pricel.
Most franchisees hire an operator, a driver (for delivering water direct to
households) and a helper for the driver.
Each new Sarvajal unit creates on average three local employment
opportunities.
It is built on a double bottom-line business model.
Has a scope for a rapidly expanding franchisee network.
 BRAIN TRUST
* Sarvajal attracted visionaries to work on their business model
and execution details.
* People came from Big companies like Mckinsey and company,
Ernst & Young and similar global firms.
* Most contributors had global exposure but Indian roots.
* The Brain Trust contributors were instrumental for the success of
Sarvajal.
* Eg: A brain trust contributor Naman Shah(Stanford University)
was sent in the field for 8 months for research.
* Upon finding out that there is a demand, another contributor
Shashani Rastogi (Ernst&Young) was sent to find out potential
frnchisees.
 PROBLEMS
*Lacked access to clean drinking
water
*Rural Operations Problem
*Cash management
*Lack of sophistication in business
planning and bookkeeping
*Communication with maintenance
team
*Complications with dust and heat
*Unreliable electricity and input
water
*Potential for theft of the equipment
*Data Management Problem
 Technology to address the problems for rural operations

* REVERSE OSMOSIS:

• Filtered water through fine membranes,

using pressure.
• Sarvajal’s RO units were standard, modular
and easily replaceable.
* They selected high-quality and durable
components at half cost.
 SMS Reporting & Sarvajal Enterprise Management System(SEMS)

• Machine monitoring devices (Soochak) regularly sent performance related

messages to servers in Ahmedabad.
• The main aim was to track key performance indicators and ensure that machines
are running properly.
• Remote monitoring & control was done via sensors that could generate 21
different messages capturing 45 different data points.
• These messages were sent to central database.
• When Sarvajal’s database initially recieves the messages, they are unreadable.
• Sarvajal’s web app (SEMS) converts into usable and meaningful data.
 Problem: Cash Management

A major issue was that franchisees could set their own pricing or even
avoid reporting to franchisor.
* Initial solution- Franchisee prepaid Sarvajal once-per-month for the
quantity of water. Soochak monitored the system. Then franchisees
collected cash from the customers.
* Flaws in the above solution: Cash flow management; Sarvajal
representative had to visit the franchisees regularly; Some
franchisees collected premiums; Water could only be drawn at
operating hours.
* Final solution: RFID(Radio Frequency Identification) Chips-
Customers with RFID tags water containers/ RFID cards could draw
water from RO units.
 Cell phone top-up

* There was one flaw in RFID- customers still had to pay

cash to fraanchisees
* This problem was solved by cell phone top-up.
* This eliminated-
a) Cash handling
b) Unfair Pricing
c) Cumbersome book-keeping
d) Pilferage from the system
 * ISSUES IN IMPLEMENTATION OF
SARVAJAL MODEL

• PRICE WAS MAJOR ISSUE

• POWER WAS ANOTHER CONCERN
• LOCATION WAS A CONCERN AS WELL
• REFUSED OR WASTEWATER SEEMED INEFFICENT
• EXPANSION COULD BE CHALLENGING FOR A SUCCESFUL
FRANCHISES
• FRANCHISE LAW WAS NEW IN INDIA
• REPUTATION WAS USEFUL COROLLARY
• LARGER MACHINES NEEDED
 Finance
*Initial seed-funding
*Two options in the later stage -
• Strategic investor
• Leasing RO units to a third party

*Reasons for choosing leasing model-

• Capital cost could be written off from Balance Sheet
• Company could focus on Intellectual Property, brand
and customer satisfaction.
* Elements of business model of Sarvajal

Understanding market need

Market Research
Differentiating their product
Pricing
Selling proposition
Delivery Distribution
Customer/franchise support
Achieving franchisee/customer satisfaction
 CONCLUSION
Identifies and trains individual franchisees.
Initial investment by the franchisee.
Revenue model of Sarvajal.
In exchange Sarvajal provides franchisees with
support to help them build a viable business
THANK YOU!