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Breathing Space Video

FYI - the BS Video is now up on the websitehttp://www.shellfoundation.org/index.php?

menuID=3&smenuID=10&bmenu=5

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Problem: Across the world 1.6 m women and children die annually Donor-funded projects have had limited impact • inappropriate technology fixes• limited donor funding available

SF Response: Market-based pilots in 5 countries across Africa, Latin America, India

• Tested finance, products, business-models, etc• Drew on Shell market knowledge, supply & distribution exp, business

planning skills, etc

Outcomes: 200,000 stoves sold in under 3 years; 1m people out of risk • good but tiny % out of 500m H/Hs

Learnings: Demand exists; stove sales profitable; but margins too low for any but slow organic growth

With right business model & seed $$, commercially viable stove industry could be catalysed…

Why Breathing Space and what have we done so far ?

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Breathing Space vision

Shell Foundation aims to achieve a significant verifiable long

term reduction in the incidence of Indoor Air Pollution at the

global level, by deploying approaches which are market

oriented and commercially viable ……..

20 million stoves sold in 5 countries in next 5 years

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A high level review of the selected geographies has led us to start of in Phase 1 with India, Brazil and Uganda/Kenya markets now .

Country Urban Rural

China 11% 89%

India 9% 91%

Uganda 15% 85%

Brazil 10% 90%

Urban/Rural Split for Commercial Market for Improved Cooking

Devices

Global Scale of Problem: Target Countries our focus

Current data indicates Indonesia also faces a significant IAP issue.China opportunity assessment to be completed to determine the impact and scale of intervention required

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India Pilot –Where & what

♦ 2 pilots in Maharashtra & Bundelkhand to evaluate the commercialization of improved

biomass fuels and cooking devices in India

♦ Monitoring and Evaluation of the Improved cook stove program for Indoor Air Quality

assessment

♦ Testing the commercialization Toolkit and business plan too kit

♦ Appropriate Rural Technology Institute developed multiple stoves for local use,

manufactured and marketed by 130 entrepreneurs and sold 75,000 stoves

♦ Development Alternatives developed multiple stoves for local use, manufactured locally,

built criteria for a sustainable business in one of the poorest regions and evaluated

microfinance options.

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Breathing Space Strategy

♦ Semi Commercial Model

♦ Focused strategic but recognize that it is only one solution

♦ Technology push that will deliver the improved stove performance and

customer needs

♦ Continued focus on biomass

♦ Focus on domestic customer segment equivalent to $1-$3 per day

♦ Blend of Grant and ’investment’ funding.

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Biogas from Starchy/Sugary Waste

Laxmi Wood Burning Stove

Sarai Cooking System

Char Briquettes from Agrowaste

Vivek SawdustStove

Sampada Gasifier Stove

What l have we done Improved Cooking Devices

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Fixed stoves

• Fuel: Woody biomass and fuel wood•Cost: US$ 6-US$ 20

Medium and Low Income Rural

Portable Stoves

•Vivek stove: sawdust & powdery biomass• Sarai system: charcoal or char briquettes• Gasifier stoves: wood chips or pellets•Cost: Rs. US$10-US$ 40

High and Medium Income Rural

Medium Income Semi-Urban

Compact BiogasSystem

• Floating dome type biogas plant & biogas stove• Water-miscible starchy feedstock•Cost: US$ 100-US$ 300

High Income Semi-Urban

Medium and High Income Urban

BPL

MARKET SEGMENTS

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Training Entrepreneurs

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Sales outlet

Production Units

The Enterprise- supply chain

Awareness & outreach

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Learnings from Pilots

Emergence of a semi commercial business model

Willingness of consumers to pay

Awareness raising on associated health issues

Appropriateness of products to meet consumer & market needs

Quality control & long term customer satisfaction and usage are critical. Durability

of the product a important factor

A centralized model of production which will reduce production costs

Micro credit/ Micro finance to Entrepreneurs and Consumers

Strong need for interaction and coordination between all the functions

Last mile of the value chain needs to be developed

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How do we serve and take it forward ?Semi Commercial Business Model.

Suppliers (Materials, Components)

Regional Coordinator

CentralisedManufacturer

Provide raw materials and components

Technology Provider

Business Plans for further scale up rolled out to reach 2 mn Households in Maharashtra ,& Bundelkhand

Retailers

Wholesaler

Awareness(IAP Awareness)

Set-up long-term awareness programme Execute centralised IAP awareness

Bus Dev Assistance

Provide core business skills training to regional coordinator and centralised manufacturer

Marketing(Creating Demand)

Develop & disseminate marketing material (brands, designs, pamphlets)

Enterprise Financing

Provide funds

Customers NGOs(B2B)

Executing marketing campaigns (Raise awareness of stoves locally) Monitor customer needs & communicate design changes to tech partner Manage centralised quality control

Stove R & D Manufacturer training &

stove certification

Finance Providers

Consumer Financing

Donor Funding Manage overall ICS programme Identify new districts and appoint manufacturer Provide marketing material to manufacturer

NGOs

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Vision ahead

Scaling up in India, Latin America and East Africa

Phased roll out to make a significant impact over

the next 5 years

Selection of a competent partners for each stage

of the business model are critical for successful

implementation of the business model in all the

states.

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For further information you can visit website

www.shellfoundation.org

Or contact

Anuradha Bhavnani @ anuradha.bhavnani@shell.com

Sanyogita Seksaria @ s.sekasaria@shell.com