Franchise based Soochak system which monitors the status of

Franchise
Model:

Sarvajal adopted a franchising model as it would
penetrate local markets. It created a network of suppliers by signing
agreements with local entrepreneurs. They operate a hub and spoke system- work
with local entrepreneurs, provide them with water purification technology and
support them in maintenance and other back end services.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Customers buy a prepaid smart card, which can be
recharged with the cell phones, swipe it over the sensor of the machine to get
the information of water quality and the credit balance in their card. They select
the measure of water required and fill their containers accordingly. Water ATMs
provides access 24 hours and 7 days a week. These water ATMs have significantly
reduced the time spent on water collection. And also creates income-generating
opportunities and also proves to be a business opportunity for the franchisees
that operate them.

 

Monitoring
water quality:

If something goes wrong in any of the ATMs, Sarvajal
is immediately informed through its customized ERP system that manages water
businesses from the source to consumption. This system integrated Sarvajal’s
cloud based Soochak system which monitors the status of its reverse osmosis and
ultra-violet filtration units, maintenance and its supply chain units.

Sarvajal’s different water filtration framework reduces
99.9 percent of germs and guarantees that minerals, for example, fluoride which
can be unsafe in overabundance, fall inside suggested levels.

 

Cost
to the company:

The total cost of setting the RO plant is around 5 lakh
to 10 lakh. Franchisees pay 40% of their earnings to the company but if the
franchisees own the machine, they pay only 20% of their earnings to the
company. The company also provides advertisement and maintenance support. The
company has partnered with local entrepreneurs, panchayats and community-based
organizations to run the water treatment plants. Local community members are
hired and are given proper trainings to manage the purification units. These
local partners earn up to Rs 35000 per month. The projects are monitored on
daily basis to ensure purity.

 

Innovations:

1-      Low
cost water treatment plant.

2-      Soochak-
Monitoring device for each water system which gives real-time information on
water production and maintenance.

3-      Suvidha-
Pre-payment mechanism for franchisees.

4-      Solar
Water ATM- A solar- powered, cloud connected RFID-based and Cash-less water
vending machine.

 

Target
Market:

Sarvajal is currently targeting only 60% of total
drinking water market of its operating areas.

It doesn’t target 30% of the population which is BPL
who cannot afford to pay for water and to 10% that can afford to buy a domestic
water purifier.

 

Marketing
and Promotional strategies of Sarvajal:

1-      Value
Proposition- “Clean water is accessible right in the beneficiaries’ village and
clean water is vital to health.”

2-      Brand
Promotion activities- Advertisements/awareness campaigns in new villages.

3-      Health
Awareness activities- Events with role plays and games for kids.

4-      Direct
and Indirect contact with end customers.

5-      Trainings
on basic business practices- Marketing training for franchisees every two
months.

6-      Toll
free landlines to have direct feedback from clients.

7-      Expands
reach through local networking, face-to-face meeting and a regular telephone
contact.

8-      Establishes
and maintains contact with local communities.

9-      Loyalty
reinforcements- Monthly pre-paid cards for consumers and free container
cleaning services.

For franchisees, incentives on
volume sold.

 

 

After
sales Services:

Water quality control:

Water quality control is done by a controlling
device that reports automatically to the Sarvajal’s Headquarters every day.
Sarvajal also provides free of charge container cleaning services to its
franchisees.

Maintenance:

E-monitoring device on each machine counts liters,
detects technical issues and checks all repairers’ work and directly
communicates with the HQ. Sarvajal can also block the Water ATM if it faces any
maintenance issues. Spare parts are also available easily as the technology is
local.

 

The
customers’ benefits:

1-      Sarvajal
costs less than a cup of tea. (30 paisa for a litre)

2-      Affordable.

3-      Assured
quality.

4-      Reliable
24*7 access.

5-      “Water
insurance” against water borne diseases.

 

Revenue
Model:

Old Business model:

Franchisees operate the machine and sell water at Rs
6 for 20 liters batch. For the first month, the entire revenue is kept by the
franchisees and from next month onwards 40% of water sales revenue is given to
Sarvajal.

New Business model:

Franchisees operate and sell water at Rs 6 for 20 liters
and additional Rs 4 for delivery at the door steps. For chilled water they
charge Rs 9. They keep 100% revenue for the first month and from second month
onwards, 20% is given to Sarvajal.

 

 

Success
of Sarvajal:

Social Impact:

1-      154
plants have been set up in just 4-5 years.

2-      More
than 200,000,000 liters of clean drinking water served.

3-      More
than 100000 regular customers in 6 states.

4-      Tremendous
decrease in water-borne health diseases.

5-      As
solar water ATMs can be placed in any locations, it reduces caste issues and
can deliver water in any community overcoming social segregation.

6-      430000
people are served daily across 16 Indian states.

Economical and Environmental Impact:

1-      668+
purification units, 332+ solar powered, clouds connected water ATMs are established
which generates 26 crore economy rise.

2-      Sarvajal’s
priced at Rs. 6 for 20 liters and additional Rs. 4 for home delivery. Easy
access and reliability of safe drinking water almost 100000 beneficiaries and
this number is increasing.

3-      Positive
impact in remote areas by solving the problems of safe drinking water with
solar water ATMs.

4-      Sarvajal
has been able to bring down the waste water generated drastically. The
purification technology is 6 times more effective than a domestic purifier.

5-      Job
creation opportunities: 400 plus employment opportunities have been created
that encourage clean water in communities.

6-      In
order to reduce energy needs of the franchisees, it has developed decentralized
solar powered ATMs.

7-      No
plastic disposable containers adding onto plastic pollution

 

 

 

 

 

 

Sarvajal
for Urban India:

While rural India is flourishing with community
level water solutions, urban India remains untouched by developments and
innovations and continues to face challenges of drinking water.

Another challenge that urban people face is
depending on non-assured sources of water or is left with costly alternatives
like buying Rs15-20 water bottle. Plastic bottles in turn add to the waste
issue and builds contamination.

How
Sarvajal faced these challenges?

1-      Decentralized
Hub and Spoke drinking water solutions for urban slums:

 

In order to serve areas which are not
well-equipped and non-piped areas, Sarvajal uses Hub and Spoke model. This
model is outlined in a way that serves areas which are not well-equipped with
power or channeled water supply.

 

This model comprises of a localized
installed purification unit and a network of water ATM units installed at
multiple locations within the community. Purification technology and capacity
of the purification unit is chosen on the basis of quality of raw water
available and regularity of power supply/target population respectively.

 

Transporting water from the
purification site to the ATMs requires a modified tank-mounted vehicle that
would collect water from the site of purification and fill the ATMs through
no-touch transfer mechanism. As soon as the water level goes down a certain
limit in the ATM, an alert will be generated and will be refilled by water
carried by the vehicle from the plant site.

 

2-      Demonstrated
Experience in Delhi and Bhubaneswar:

 

Piramal Sarvajal has pioneered the
Hub & Spoke business model and has installed it effectively in 8
resettlement colonies (slums) at Delhi with the support of Delhi Jal Board.

 

After Delhi, Bhubaneswar is the
principal Smart City to setup a ‘Hub N Spokes’ water ATM project and has signed
up with Piramal Sarvajal to set up the decentralized safe drinking water
solution through 4 Hub Purification Units and 40 ATMs.

x

Hi!
I'm Marcella!

Would you like to get a custom essay? How about receiving a customized one?

Check it out