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India, with a large population of people who do not have access to efficient lighting, is home to many of our potential users. Eighteen thousand rural villages in India lack electricity. This automatically puts much of rural India at a disadvantage in comparison to richer parts of urban India. Lighting is useful for many things, from children being able to study at night to parents being able to make a few more crafts that they can sell for more money. Recognizing this fact, the Indian government is in the process of bringing electricity to these villages. However, it will take many years before the majority of these communities, some being located in very remote areas, can reliably be put on a grid. The government therefore hopes to bring these people efficient lights that they could use until they have access to electricity. Our LED lights, with their numerous benefits over other types of lights, can possibly be what the Indian government is looking for. India's political and economic stability, relatively strong infrastructure, and various established manufacturing centers also present a beneficial environment for a new business venture.

1.2 Initial Target States

Because the vast majority of southern India is already electrified, we initially looked to northern India for potential users. Unfortunately, many areas of northern India are currently experiencing violent social confrontations that would greatly weaken our ability to establish a basis for a successful business. Also, many areas of northern India are plagued by a poverty so deep that lighting is a trivial concern. As a result, the states of Rajasthan and West Bengal (in west and east India respectively) were chosen because of their relative social and economic stability. Though numerous people in both of these states live on less than 2 USD per day, they still have some disposable income or resources that they could use to purchase the light. Moreover, both states have relatively good transport systems for distribution.

2. General Country Information

2.1 Physical Environment

India is full of geographic and climatic diversity, with mountains, plains, rainforests, deserts, and coastal regions. This geographic diversity will provide a wide range of environments in which to test the product.

Source: www.welcometoindia.com Notable aspects of India's climate Monsoons affect east and southwest India from June

Source: www.welcometoindia.com

Notable aspects of India's climate

Monsoons affect east and southwest India from June to October. Flooding is common during these months. In these areas, photovoltaics would not be the best source is common during these months. In these areas, photovoltaics would not be the best source of energy; other options such as mechanical sources of energy should be considered.

There is a great amount of humidity in India, particularly along the coast, and 73% of the country experiences a "medium" amount of rainfall. The product and energy sources should be designed for a wet environment.such as mechanical sources of energy should be considered. Many parts of India lie near fault

Many parts of India lie near fault lines. If the product is a stable, indoor light, it should be set up in such a manner that it will not hurt people during an earthquake.and energy sources should be designed for a wet environment. In the arid areas of northwest

In the arid areas of northwest India, the product should be able to with stand temperatures over 100 degrees Fahrenheit.a manner that it will not hurt people during an earthquake. Sources: 1 . CIA. The

Sources:

1. CIA. The CIA World Fact Book: India. http://www.cia.gov/cia/publications/factbook/geos/in.html. 10 Feb. 2003

2. The Fix. Welcome to India. www.welcometoindia.com. 3 Feb. 2003

3. Press and Information, Embassy of India. Embassy of India, Washington D.C. www.indianembassy.org. 7 Feb. 2003

2.2 Population / Population Distribution

India is home to 1 billion people. The most dense states are Delhi, Chandigrah, Daman and Diu, Lakshwadeep, and Pondicherry.

On average, rural villages are home to 1500 people.

On average, rural villages are home to 1500 people. Source:

Sources:

1. The Fix. Welcome to India. www.welcometoindia.com. 3 Feb. 2003

2. Press and Information, Embassy of India. Embassy of India, Washington D.C. www.indianembassy.org. 7 Feb. 2003

Transportation

On average, villages are only 2.5 km apart.D.C . www.indianembassy.org. 7 Feb. 2003 Transportation About 50% of roads are paved, depending on region.

About 50% of roads are paved, depending on region.Transportation On average, villages are only 2.5 km apart. Railways are the principle mode of transportation

Railways are the principle mode of transportation for both freight and passengers; due to heavy demand by industries, the government is working to improve the existing network. to improve the existing network.

Air India Limited is the major International carrier of the country (flies to US and almost everywhere else). Indian Airlines is the major domestic air carrier of the country. It operates 57 domestic stations and 17 international stations in Asia.the government is working to improve the existing network. Sources: 1 . Datanet India Pvt. Ltd.

Sources:

2.

3.

The Fix. Welcome to India. www.welcometoindia.com. 3 Feb. 2003

Press and Information, Embassy of India. Embassy of India, Washington D.C. www.indianembassy.org. 7 Feb. 2003

2.3 National Economy

India's economy is currently stable. Factors that could easily affect this stability, however, include unsuccessful harvest seasons and natural disasters. Agriculture, handicrafts, support services, and software services compose a large part of the Indian economy. Growth in the manufacturing sector slowed in 2001.

General Statistics:

Debt Classification: less-indebted (World Bank, 2001)the manufacturing sector slowed in 2001. General Statistics: Exchange rate: 48.336 rupees / US dollar GDP

Exchange rate: 48.336 rupees / US dollarDebt Classification: less-indebted (World Bank, 2001) GDP growth: 5% Inflation: 4% (World Bank, 2001) Purchasing

GDP growth: 5%(World Bank, 2001) Exchange rate: 48.336 rupees / US dollar Inflation: 4% (World Bank, 2001) Purchasing

Inflation: 4% (World Bank, 2001)Exchange rate: 48.336 rupees / US dollar GDP growth: 5% Purchasing Power Parity: $2.5 trillion Income

Purchasing Power Parity: $2.5 trillion/ US dollar GDP growth: 5% Inflation: 4% (World Bank, 2001) Income Levels and Poverty: With

Income Levels and Poverty:

With over a quarter of the world's poor concentrated in India, poverty is the government's biggest priority.

Classified as a "low income" country by the World Bank with a GNI (gross national income) of $450.in India, poverty is the government's biggest priority. Great inequality in the distribution of wealth: the

Great inequality in the distribution of wealth: the richest tenth of households hold 33% of wealth, while the poorest tenth only hold 3%the World Bank with a GNI (gross national income) of $450. 29% of the population lives

29% of the population lives below the poverty line; 70% of these people reside in rural areas 86% of the population lives under $2 per day; 44% lives under $1 per day day

25% of the population does not have enough money to eat adequatelylives under $2 per day; 44% lives under $1 per day Because of the high levels

Because of the high levels of poverty in the countryside, huge numbers of migrants are flocking to the cities in search of a job and a better of migrants are flocking to the cities in search of a job and a better life. The cities cannot support this swelling much longer, meaning that rural living must be improved to retain people.

Sources:

1. CIA. The CIA World Fact Book: India. http://www.cia.gov/cia/publications/factbook/geos/in.html. 10 Feb. 2003

2. Datanet India Pvt. Ltd. IndiaStat.com. www.indiastat.com. 7 Feb. 2003

3. Press and Information, Embassy of India. Embassy of India, Washington D.C. www.indianembassy.org. 7 Feb. 2003

4. The World Bank. India Data Profile. http://devdata.worldbank.org/external/CPProfile.asp? SelectedCountry=IND&CCODE=IND&CNAME=India&PTYPE=CP. 7 Feb. 2003

2.4 National Government

The Indian government is a representative democracy, with a separation of executive, legislative, and judicial powers. Elected in 1998, the prime minister is Atal Bihari of executive, legislative, and judicial powers. Elected in 1998, the prime minister is Atal Bihari Vajpayee. The government is stable: there have been no major coups

since 1947.

Challenges we will face when implementing any business plan include cronyism, and corruption within the regulatory bodies and judicial system. In 2002, the international monitoring organization, Transparency International, rated the corruption of the Indian government as 2.7 on a scale of 10, with 10 being the least corrupt. Furthermore, government bureaucracy is extensive, and any business faces numerous inspections from tax agencies and safety regulators. It is important to note that the government shows preference to businesses with a long history in India and to Indian-owed companies.since 1947. The government is a major employer in many areas of India due to little

The government is a major employer in many areas of India due to little private investment. It consumed 10% of India's GDP in 1996. It provides the majority of investments in the science and technology sectors, particularly in the areas of defense, nuclear science, space, and agriculture.with a long history in India and to Indian-owed companies. Sources: 1 . CIA. The CIA

Sources:

1. CIA. The CIA World Fact Book: India. http://www.cia.gov/cia/publications/factbook/geos/in.html. 10 Feb. 2003.

2. Transparency International Corruption Index. Transparency.org. http://www.transparency.org/cpi/2002/cpi2002.en.html. 7 Feb. 2003.

3. IndianChild.com. http://www.indianchild.com/indian_economy.htm. 7 Feb. 2003.

2.5 Lighting, Electricity, and Energy

India has one of the world's largest programs for renewable energy. According to Indian researchers, there is a huge untapped potential for renewable energy in India, and they are working to achieve that full potential. New sources of energy have been rapidly accepted by rural people.

Current available power sources in India include power grids, solar power, hydro power, gasoline, and coal.

Access to Electricity

Electrical consumption per capita is 363 kWh (growing), compared to 11,822 kWh in the US. (all figures below: TERI, 2002)hydro power, gasoline, and coal. Access to Electricity 80,000 villages are not connected to the grid;

80,000 villages are not connected to the grid; 18,000 of these are in remote areas.to 11,822 kWh in the US. (all figures below: TERI, 2002) Though the government has "electrified"

Though the government has "electrified" (meaning at least one house has grid electricity) 85% of villages, only 37% of rural households have electricity. About 50% of households in urban slums have electricity.connected to the grid; 18,000 of these are in remote areas. Households in electrified villages do

Households in electrified villages do not tap into the electricity because it is too unreliable or simply too expensive.About 50% of households in urban slums have electricity. There are constant energy shortages and blackouts,

There are constant energy shortages and blackouts, due to a lack of power plants, electricity being illegally stolen from the grid, and an 18% loss during transmission power plants, electricity being illegally stolen from the grid, and an 18% loss during transmission and distribution caused by old technology (compared to 6% in US).

Costs of Lighting

The typical family spends 19 rupees on kerosene each month.(all figures below:by old technology (compared to 6% in US). Costs of Lighting World Bank, 2002) Poor households

World Bank, 2002)

Poor households spend 4% of their income on lighting, while rich households spend less than .5%.US). Costs of Lighting The typical family spends 19 rupees on kerosene each month.(all figures below:

Kerosene costs 2.5-5 Rs/ klm hour.Incandescent bulbs cost 0.10/ klm hour. Electricity is 20 times less expensive for lighting than

Incandescent bulbs cost 0.10/ klm hour.Kerosene costs 2.5-5 Rs/ klm hour. Electricity is 20 times less expensive for lighting than kerosene

Electricity is 20 times less expensive for lighting than kerosene (if kerosene is used only for lighting).2.5-5 Rs/ klm hour. Incandescent bulbs cost 0.10/ klm hour. Electricity costs 15.2 Rs/ month. Indian

Electricity costs 15.2 Rs/ month.than kerosene (if kerosene is used only for lighting). Indian government needs about $100 billion US

Indian government needs about $100 billion US dollars to meet power requirements for the next 15 years.used only for lighting). Electricity costs 15.2 Rs/ month. Energy Sources 70-80 million rural households still

Energy Sources

70-80 million rural households still depend on kerosene for their home lighting. Though kerosene is noxious and gives off a lot of smoke, it is a lighting. Though kerosene is noxious and gives off a lot of smoke, it is a great improvement over fuelwood fires that are traditionally used.

Biomass is the use of cow dung for fuel. Cow dung smoke is toxic, but is often used because it is free. Educated people tend to use petroleum-based fuel for all their cooking rather than biomass. Non-smoking women in India exposed to everyday biomass smoke had equally high death rates from chronic respiratory diseases as male heavy smokers.over fuelwood fires that are traditionally used. The government also uses vegetable waste (like coconut

The government also uses vegetable waste (like coconut shells and sugar cane stalks) as fuel for thermal-energy power plants. Efforts are being made to create new species of plants that grow quickly and burn cleanly to be used as fuelwood. To promote its use, the government provides a subsidy and provides a low interest rate loan from the Indian Renewable Energy Development Agency Limited (IREDA). The government currently uses education programs to promote these new technologies of rural people.from chronic respiratory diseases as male heavy smokers. With 300 sunny days and 5000 trillion KwH

With 300 sunny days and 5000 trillion KwH of solar radiation per year, solar power is a very viable option in India. India is the world's third largest producer of Photovoltaic modules (solar panels), and 75 companies are involved in the production of solar cells, modules and systems. Over 600,000 solar PV systems (about 40 MW) have been installed in India, making it the largest such deployment in the developing world. In many parts of the country there are rural energy co- operatives. Sagar Island in West Bengal will be electrified entirely on solar energy by 2012.programs to promote these new technologies of rural people. India ranks fourth in the world for

India ranks fourth in the world for wind power capacity (1,025 MW), and there is an estimated potential of about 20,000 MW of wind power. Furthermore, India has its own turbine industry. To promote wind energy, the government is willing to provide soft loans to both manufacturers and installers of wind farms.will be electrified entirely on solar energy by 2012. Sources: 1 . "Energy." India Information, Embassy

Sources:

1. "Energy." India Information, Embassy of India 2000.

<http://www.indiaembassy.org/indiainfo/india_2000/chapters/chp22.pdf> 17 Feb.

2003

2. "Energy Strategies for Rural India: Evidence from Six States." Joint UNDP/ World Bank Energy Sector Management Assistance Programme. Aug. 2002 <http://www.worldbank.org/html/fpd/esmap/pdfs/258-02_intro.pdf> 2 March 2003

3. Malhorta, Preeti and Shandari, Preety. "Rural Energy Development in India." TERI 2002

2.6 Current Government Energy Programs

The following are projects that demonstrate the Indian government's interest in renewable energy technology for the power sector. Potential partnerships with current

government projects could be invaluable in easing the distribution and sale of LED lighting systems providing insight into how to successfully reach the impoverished.

The Power for All Initiative:

Announced earlier this year by Prime Minister Vaipayeereach the impoverished. The Power for All Initiative: By 2012, the government plans to connect all

By 2012, the government plans to connect all rural villages to power using renewable energy technologies.Announced earlier this year by Prime Minister Vaipayee To help accomplish this task, a Ministry of

To help accomplish this task, a Ministry of Non-traditional Energy has been created to coordinate renewable energy research. been created to coordinate renewable energy research.

The Renewable Energy Policy Act (currently before the Indian Parliament):

Goals include having a renewable energy capacity of 10,000 MW by 2012 and providing electricity to 25% of non-electrified rural villages by 2012. If these goals are and providing electricity to 25% of non-electrified rural villages by 2012. If these goals are achieved, a 11.6% power deficit will remain. It is believed that demand will increase two to three fold over the next twenty years.

The government will provide incentives for research, development, and demonstration of new technologies, market development, and laws prescribing a minimum of renewable energy in each state.will increase two to three fold over the next twenty years. Sources: 1 . Prime Minister's

Sources:

1. Prime Minister's Office. http://pmindia.nic.in/home.htm. 7 February 2003.

3. Composite User and Regional Information

7 February 2003. 3. Composite User and Regional Information Grain Harvest in Rajasthan Source:
Source: http://biology.queensu.ca/~arnoldh/raj%20woman%20in%20field.jpg 3.1 Composite User: Jyoti Mundra from Rajasthan,

3.1 Composite User: Jyoti Mundra from Rajasthan, 42 years old

Jyoti lives in Bharatpur in the eastern part of Rajasthan. Most villages in her district have electricity but hers does not. She is married, has 5 kids. Her 2 brothers died a few years ago. She currently lives with her husband's mother, his mother's 2 unmarried sisters, her husband, his brother, her niece and nephew, and her own two children. She has no concept of privacy or personal space; everyone in the family knows each other's businesses.

Jyoti's family owns a camel which she rides to larger villages to get daily goods such as soap and vegetables. Her family grows wheat, but the monsoon rains are a constant source of worry. If the rains are too light, the harvest will be low and the dry season will be hard for the family. She never went to school and is illiterate, but she sends her kids to the government school, despite expensive fees. She lives in a mud house with a thatched roof. Every day she walks an hour to get water from the well. But in the dry season, the well dries up and she has to travel even further to get water. She hopes her children will get good jobs in Jaipur. She would like to have a gas stove. She spends 13 rupees on kerosene per month.

Insights

There is ample sunlight in Rajasthan, so PV cells would be useful.stove. She spends 13 rupees on kerosene per month. Insights Education is valued, so a light

Education is valued, so a light for reading may be desired.is ample sunlight in Rajasthan, so PV cells would be useful. People in Rajasthan enjoy watching

People in Rajasthan enjoy watching TV, and thus would like to have electricity for that purpose as well.would be useful. Education is valued, so a light for reading may be desired. Environment in

Environment in Rajasthan

Living Conditions

Months from October to February are very cold, while it is very hot between March and September. The state gets very scant rainfall in the desert region. During between March and September. The state gets very scant rainfall in the desert region. During summer, people fetch water from miles away.

The western deserts accumulate about 100 mm (about 4 in) annually, while the southeastern part of the state receives 650 mm (26 in) annually, most of while the southeastern part of the state receives 650 mm (26 in) annually, most of which falls from July through September during the monsoon season. (IndiaStat, 2003)

Pre-monsoon season, which extends from April to June, is the hottest season, with temperatures ranging from 32 degree Celsius to 45 degree Celsius.September during the monsoon season. (IndiaStat, 2003) Rajasthan has suffered a drought for the last three

Rajasthan has suffered a drought for the last three years.ranging from 32 degree Celsius to 45 degree Celsius. The poor receive a ration quota (2

The poor receive a ration quota (2 kg. rice, plus pulses, sugar, salt, and oil) fromRajasthan has suffered a drought for the last three years. a Public Distribution System (PDS) shop

a Public Distribution System (PDS) shop and purchase other household essentials at local market.

Infrastructure

Most roads in Rajasthan, are tarred; nevertheless potholes are common.other household essentials at local market. Infrastructure There are less than 3000 km of national highway

There are less than 3000 km of national highway (Mar. 96-97).in Rajasthan, are tarred; nevertheless potholes are common. Most people travel by foot. Wealthier people travel

Most people travel by foot.are less than 3000 km of national highway (Mar. 96-97). Wealthier people travel by auto-rickshaw and

Wealthier people travel by auto-rickshaw and jeep.national highway (Mar. 96-97). Most people travel by foot. Camels are often used in the western

Camels are often used in the western Rajasthani desert.by foot. Wealthier people travel by auto-rickshaw and jeep. Electricity There is a lack of adequate

Electricity

There is a lack of adequate power supply. The most power that is ever available

There is a lack of adequate power supply. The most power that is ever available

is

2-3 hours/ day, usually at night. Furthermore, the timings of supply are

unknown; there is no uniformity in the supply of power. Due to erratic voltage, sometimes even a single bulb does not glow.

People must wait a long time for new connection, sometimes as much as 10 to

People must wait a long time for new connection, sometimes as much as 10 to

15

years. This leads people to resort to theft.

90 percent of the villages in Rajasthan are connected to the power grid, but over

90

percent of the villages in Rajasthan are connected to the power grid, but over

60

percent of the households do not have electricity.

Rajasthan is the first state to begin achieving the targets of solar rural electrification.

Rajasthan is the first state to begin achieving the targets of solar rural electrification.

The Union Ministry of Non-Conventional Energy Sources has allotted 5,000 solar

The Union Ministry of Non-Conventional Energy Sources has allotted 5,000 solar

home lighting systems for rural areas in the state for the current financial year. This is the highest target among all states.

A minimum of ten connections are allotted to a village or cluster of huts under

A

minimum of ten connections are allotted to a village or cluster of huts under

the Solar Rural Electrification Program. One solar panel is installed on the roof of each beneficiary's house which is connected to battery. Two fixtures and switches are installed in every house.

The system supplies electricity regularly for three to four hours daily. Even in the absence

The system supplies electricity regularly for three to four hours daily. Even in the absence of sunlight, the system can supply electricity for up to three to four days.

Rajasthan has a 294.9 kWh per capita per year electricity consumption. This is less than

Rajasthan has a 294.9 kWh per capita per year electricity consumption. This is less than national average. (IndiaStat, 2003)

Rajasthan spends the lowest amount on energy compared to other Indian states

Rajasthan spends the lowest amount on energy compared to other Indian states

--

13 Rs./month on kerosene, 16.9 Rs /month on electricity.

200 klm hours are used per capita each year (equivalent to one 60W incandescent used

200 klm hours are used per capita each year (equivalent to one 60W incandescent used one hour every-other day). (Indiastat, 2003)

Economic and Political Conditions in Rajasthan

Politics

Administratively, Rajasthan is further subdivided into 32 districts, which are further sub-divided into tehsils and development blocks.Politics A panchayat is in charge of community governance and development. Panchayats elections are regularly held

A panchayat is in charge of community governance and development. Panchayats elections are regularly held and overseen by state election commission.are further sub-divided into tehsils and development blocks. Rajasthanis in 1997 received the right to all

Rajasthanis in 1997 received the right to all panchayat-related documents, and in 2000 received the right to information in all spheres of governance with the help of the NGO MKSS (Madzoor Kisan Shakti Sangathan).regularly held and overseen by state election commission. Nearly all villagers vote, yet women, people from

Nearly all villagers vote, yet women, people from tribal areas, and the landless have lower participation rates.the help of the NGO MKSS (Madzoor Kisan Shakti Sangathan). 20-40% of villagers participate in PRI

20-40% of villagers participate in PRI decision-making.areas, and the landless have lower participation rates. One commonly held belief is that you can

One commonly held belief is that you can only get benefits in a village if you are associated with the sarpanch's (leader's) family. Corruption among sarpanchs is rampant, and panchayat officials will not stop the corruption.20-40% of villagers participate in PRI decision-making. Since 1994, 33% of panchayatas were women. Yet, if

Since 1994, 33% of panchayatas were women. Yet, if women are elected the sarpanchs, their husbands often have power instead. the sarpanchs, their husbands often have power instead.

Economics

Livestock breeding is the traditional subsistence strategy in western Rajasthan and, in principle, well attuned to its natural resource base. It is an important source of income for the poorer segments of the rural population with limited or no land resources.their husbands often have power instead. Economics Minimum wage is Rs. 60/day. 79% of the population

Minimum wage is Rs. 60/day.of the rural population with limited or no land resources. 79% of the population is rural.

79% of the population is rural.limited or no land resources. Minimum wage is Rs. 60/day. 37% of the rural population lives

37% of the rural population lives in poverty.Minimum wage is Rs. 60/day. 79% of the population is rural. Mean annual household income: 34,551

Mean annual household income: 34,551 rupees. ($735)is rural. 37% of the rural population lives in poverty. Social Structure in Rajasthan Education Illiteracy

Social Structure in Rajasthan

Education

Illiteracy is high for men and even higher for women.rupees. ($735) Social Structure in Rajasthan Education Children often leave school to aid their mother with

Children often leave school to aid their mother with household chores or to help out in the fields.Illiteracy is high for men and even higher for women. Religion Many people in Rajasthan are

Religion

Many people in Rajasthan are Hindu.household chores or to help out in the fields. Religion The caste system is adhered to.

The caste system is adhered to.in the fields. Religion Many people in Rajasthan are Hindu. Use of Light Currently, women spend

Use of Light

Currently, women spend 2-6 hours and walk 4-8 km daily gathering firewood to light their homes and to use for cooking. Many women have chronic back problems from carrying a 10kg (~20 lb) load on their heads every day.in Rajasthan are Hindu. The caste system is adhered to. Use of Light Candles and kerosene

Candles and kerosene lamps are used at local temples,and to use for cooking. Many women have chronic back problems from carrying a 10kg (~20

The idea of putting light in the shops in the market may appeal to villagers because they have to walk far to reach them at night. They might also appreciate a torch for walking at night.Receptiveness to Technology Televisions are valued. Aspirations People always want to own more land. Most

Receptiveness to Technology

Televisions are valued.a torch for walking at night. Receptiveness to Technology Aspirations People always want to own more

Aspirations

People always want to own more land.to Technology Televisions are valued. Aspirations Most parents would like to be able send both of

Most parents would like to be able send both of their children to school and would like for their children to have adequate time to study.are valued. Aspirations People always want to own more land. People want an irrigation system. Parents

People want an irrigation system.like for their children to have adequate time to study. Parents hope that their daughters marry

Parents hope that their daughters marry someone of the same caste or of a higher caste.adequate time to study. People want an irrigation system. Sources: 1 . Center for Consumer Action

Sources:

1.

Center for Consumer Action Research and Training. http://cuts.org/cart-power- er-dev-abu.htm. 7 March 2003

2.

Embassy of India, Washington D.C. http://www.indianembassy.org/indiaingo/india_2000/chapters/chp17.pdf. 7 March

2003

3.

The Hindu. http://hinduonnet.com/thehindu/2001/03/04/stories/1404221e.htm. 7 March 2003

4.

IndiaStat.com. www.indiastat.com. 7 March 2003

5.

IndiaTogeter.Org. http://www.indiatogether.org/govt/ocal/articles/arc- rahasthan.htm. 7 March 2003

6.

Pegu, Rink. The Week. "Packing a Punch." http://www.the- week.com/99nov21/events2.htm. 7 March 2003

7.

Rajasthan Travel Tours. http://www.rajasthan-travel-tours.com/rajasthan- climate/. 7 March 2003

8.

United Nations Development Programmme. "Chasing a Right." http://www.undp.org/governance/docsaccess/chasing_a_right.pdf. 7 March 2003

9.

Vetwork UK. http://www.vetwork.org.uk/ilsel.htm. 7 March 2003

10.

The World Bank Group. "Poverty Net." http://poverty.worldbank.org/library/view/10203. 7 March 2003

3.2 Composite User: Abhik Mittra from West Bengal, 48 years old

Abhik lives with his forty year old wife, Indra, in the village of Kandi, located in the West Bengal state. The two have four children - three girls and one boy. The village in which they live lacks electricity and other basic utilities. Abhik and his family live in a semi-permanent thatched-roof house made of mud. It is supported by bamboo rods and has a dirt floor, which Indra has a hard time keeping clean. Like the other villagers, Abhik is a subsistence rice farmer who lives on a day-to-day basis. The little money he does make he gets in spurts based on the harvest season.

Abhik is especially worried about money these days because he needs to pay his daughters’ dowries. Abhik was fortunate enough to gather enough money to provide

dowry for his eldest daughter, age twenty, to marry a local farmer. Abhik still has two other daughters, age nineteen and seventeen, for which he has to secure dowries. Abhik also has one son, who is the youngest at age fourteen. Because he is their only son, Abhik and Indra are trying hard to keep him in school for the longest period of time that they can afford. Abhik and Indra were able to send their daughters to school until age twelve, but they are hoping to keep their son in school for another year until he turns fifteen. They are very proud of their children’s education, because they themselves are both illiterate. They were unable to keep their daughters in school for a longer period of time because they were needed at home to help with the household and field work.

Abhik’s mother also lives with the family. She is sixty-five years old. Her husband (Abhik’s father) died nine years ago. Besides their four children, Abhik and Indra also had two other children who died at childbirth.

Indra spends a large portion of her time gathering wood for the cooking stove. Because all her daughters will soon be married away, she will no longer have help with this task. Since the village in which Indra and Abhik live is not connected to the electrical grid, they must use kerosene for their lighting needs. Abhik spends about 37 rupees per month on kerosene, which is about 3% of his monthly income. He tries to use it very sparingly, and he mainly uses it when he needs to fix his farming tools at night. Lately, Abhik and Indra have also been very concerned about their water supply, because there has been an outbreak of arsenic poisoning in the ground water. Unfortunately, they do not have enough money to buy bottled water. As it is, they barely have enough to eat.

Insights:

Most farmers get their income in large spurts depending on the harvest cycle. Therefore, they will only have spending money at certain times of the year.water. As it is, they barely have enough to eat. Insights: Environment in West Bengal Location

Environment in West Bengal

Location

West Bengal borders Bangladesh, Bhutan, and Nepal.

Population

West Bengal is home to 68 million people.Bengal borders Bangladesh, Bhutan, and Nepal. Population Three-fourths of these people live in rural areas. The

Three-fourths of these people live in rural areas.Nepal. Population West Bengal is home to 68 million people. The population density is 766 people

The population density is 766 people per square km.people. Three-fourths of these people live in rural areas. West Bengal's most populous cities are Calcutta,

West Bengal's most populous cities are Calcutta, Howrah, and Haldia. Haldia.

The Midnapore district has the highest population, while Calcutta has the highest population density.most populous cities are Calcutta, Howrah, and Haldia. Houses tend to be further apart from each

Houses tend to be further apart from each other in villages than is typical in India. India.

Climate and Geography

West Bengal has a diverse geography, with the Himalyas in the north and plains in the

south. On the plains, the monsoon season runs from June to September bringing floods and mudslides with it. Before monsoon season, this area is typically very dry. The state provides a great range of temperatures and climates in which to test the ruggedness of our product, with snow in the mountainous regions and hot, humid summers in the southern region.

Living Conditions

People in rural West Bengal villages tend to live in mud thatched homes with dirt floors.hot, humid summers in the southern region. Living Conditions About a third of households have electricity.

About a third of households have electricity. Where electricity is unavailable, people use kerosene, which costs 37 Rupees/ month (0.77USD).tend to live in mud thatched homes with dirt floors. Three-fourths of households have a safe

Three-fourths of households have a safe drinking water supply.people use kerosene, which costs 37 Rupees/ month (0.77USD). While one-third of them have flush toilets,

While one-third of them have flush toilets, half of West Bengal households have no toilet facilities at all.of households have a safe drinking water supply. Many rural villages are remote. Public transportation is

Many rural villages are remote. Public transportation is available in West Bengal, but it will only take one so far. Eventually, to reach most small villages, one will have to do some lengthy walking.of West Bengal households have no toilet facilities at all. Economic Conditions in West Bengal The

Economic Conditions in West Bengal

The most common occupation is agriculture. Rice is a particularly profitable crop in parts of the state. Many people also make crafts (jewelry, rugs, baskets) to sell on the streets of cities.

A typical farmer's wage would be around 14,800 Rupees/ year (310 USD).

Social Structure in West Bengal

Family

One study showed that the ideal family size in West Bengal is 2 children; however, the average family size is currently 4. This average is expected to decrease over the next few decades. (International Institute for Population Studies, 2001)year (310 USD). Social Structure in West Bengal Family Many women work solely in the home

Many women work solely in the home tending to children and cooking. However, women do sometimes work outside of the home if it is financially necessary. 29% of West Bengal women work in addition to doing domestic chores, and 89% of these women work for cash. (International Institute for Population Studies, 2001)(International Institute for Population Studies, 2001) Health The government successfully dispense general health

Health

The government successfully dispense general health information by radio. For example, it was public announcements on family planning that has led to a decrease in family size.Institute for Population Studies, 2001) Health Many people are malnourished. 67% of women are anemic, and

Many people are malnourished. 67% of women are anemic, and 48% of children are underweight. (International Institute for Population Studies, 2001)family planning that has led to a decrease in family size. The infant mortality rate (under

The infant mortality rate (under the age of 5) is 67.6%. (International Institute for Population Studies, 2001)67% of women are anemic, and 48% of children are underweight. (International Institute for Population Studies,

Education

The literacy rate for females is 57%; meanwhile, 67% of males are literate. (International Institute for Population Studies, 2001)Education Schools are not available in all West Bengal villages. Education is valued, but children must

Schools are not available in all West Bengal villages.(International Institute for Population Studies, 2001) Education is valued, but children must often leave school to

Education is valued, but children must often leave school to help their families earn money.2001) Schools are not available in all West Bengal villages. Religion The majority of West Bengal

Religion

The majority of West Bengal residents are Hindu.leave school to help their families earn money. Religion While the caste system is in effect

While the caste system is in effect in some areas, a tribal system divides people in other areas.Religion The majority of West Bengal residents are Hindu. There is a significant Muslim population, approximately

There is a significant Muslim population, approximately 23% of state population.some areas, a tribal system divides people in other areas. Use of Light Children, if they

Use of Light

Children, if they are in school, need light to do their homework.approximately 23% of state population. Use of Light Light can also be used to make crafts

Light can also be used to make crafts at night and therefore increase family income.if they are in school, need light to do their homework. People are generally open to

People are generally open to outside technology.make crafts at night and therefore increase family income. Sources: 1 . Dasgupta, Sourav and Sudeshna

Sources:

1. Dasgupta, Sourav and Sudeshna Dasgupta. "Bengal Web." http://www.bengalweb.com/intro/wbengeo3.html. 9 March 2003

2. IndiaChild. "Indian Villages." http://www.indianchild.com/indian_villages.htm. 9 March 2003

3. Israel, Samuel ed. Crafts of West Bengal. Grantha Coporation: Middletown, New Jersey, 1994.

4. National Family Health Survey, 1998-1999. International Institute for Population Sciences: Mumbai, 2001

5. World Bank, 2001 http://www.rnw.nl/humanrights/html/09_march_1999.html

4. Business Context

4.1 Overarching Business Climate

India has a strong entrepreneurial climate. Almost all transactions take place on a local level by small shopowners. People are willing to take risks if they have access to the appropriate financing.

There are two types of ventures that foreign investors who want to do business in India can undertake:

A joint venture in which they have a partner in India.investors who want to do business in India can undertake: These are the most common--an Indian

These are the most common--an Indian specialist would be aware of local details that a foreigner may not know.

A completely foreign-owned company. These are more difficult to maintain. It is also more likely

A completely foreign-owned company.

These are more difficult to maintain. It is also more likely that the investor will be troubled by government bureaucracy.

It is in our best interest to do a joint venture.

4.2 Company Structure

Regardless of our company organization in India, we will need an international structure that determines how our organization behaves.

If Light Up the World continued to perform the following core duties, it would be an international financial organization that deals with suppliers and with its domestic partners around the world:

1. Dealing with suppliers (LED manufacturers, raw materials providers, electrical component manufacturers) to leverage buying in bulk

2. International financials: fundraising, assisting subsidiaries, diverting resources from a successful venture to other projects in other countries as necessary.

venture to other projects in other countries as necessary. Such a model makes Light Up The

Such a model makes Light Up The World a hub for materials, resources, and information that all domestic subsidiaries can utilize when necessary. The amount of support Light Up The World will provide its subsidiaries and the support these

subsidiaries will provide their regional departments is yet to be determined. However, it is quite possible that the subsidiary will provide regional departments with technical, financial, and market expertise and that the regional department will provide the subsidiary with working knowledge of the people in that region and a labor force to deploy the product. Ideally, the regional departments would also stimulate some form of local microenterprise.

4.3 Manufacturing

It is unclear whether or not it would be beneficial to manufacture in India. While at first India may seem to have a favorable manufacturing environment, the World Bank notes numerous reasons why foreign investors sometimes shy away from India.

Benefits of manufacturing in India:

Manufacturing in India would allow us to integrate strong Indian R&D development in energy storage, lighting, and alternate energy sources into our project.shy away from India. Benefits of manufacturing in India: India's natural resources could be utilized. There

India's natural resources could be utilized.lighting, and alternate energy sources into our project. There are potential government subsidies for manufacturing

There are potential government subsidies for manufacturing renewable energy products.project. India's natural resources could be utilized. Cheap labor (though potentially not as cheap as some

Cheap labor (though potentially not as cheap as some other areas) exists in India. A large portion of the labor force is also technically-trained and speaks English.subsidies for manufacturing renewable energy products. Allows specialization of product development for Indian

Allows specialization of product development for Indian market.labor force is also technically-trained and speaks English. Distribution would be faster and cheaper. Drawbacks of

Distribution would be faster and cheaper.specialization of product development for Indian market. Drawbacks of manufacturing in India: There are possibly

Drawbacks of manufacturing in India:

There are possibly cheaper manufacturing centers (because of labor costs) in other countries. In 1999, Foreign Direct Investment made up .5% of India's GDP compared to 4.1% in China. (all figures below: World Bank, 2002)be faster and cheaper. Drawbacks of manufacturing in India: India has low labor productivity compared to

India has low labor productivity compared to other Asian developing countries, even when India's cheaper labor costs are taken into mindto 4.1% in China. (all figures below: World Bank, 2002) Businesses are subject to frequent visits

Businesses are subject to frequent visits by state officials. 15.9% of management time is taken to deal with government officials on regulatory administrative issues. This is compared to 11.4% in China, 4.3% in Latin America, and 5.8% in OECD countries.when India's cheaper labor costs are taken into mind There are long delays at customs houses:

There are long delays at customs houses: India averages 10.3 days compared to 7 days in Thailandin China, 4.3% in Latin America, and 5.8% in OECD countries. There is a poor supply

There is a poor supply of power. 45% of surveyed Indian firms had their own generators, a figure which is very high by international standards own generators, a figure which is very high by international standards

With an average interest cost of sales (per rupee) of 5.5%, Indian manufacturing uncompetitivea figure which is very high by international standards India has a weaker communications infrastructure compared

India has a weaker communications infrastructure compared to other countries.(per rupee) of 5.5%, Indian manufacturing uncompetitive Internet hosts per 10,000 people: .2 India, .6 China,

Internet hosts per 10,000 people: .2 India, .6 China, 40.9 Mexico.communications infrastructure compared to other countries. Telephone mainlines per 1,000 people: 22 India, 70 China,

Telephone mainlines per 1,000 people: 22 India, 70 China, 104 Mexicohosts per 10,000 people: .2 India, .6 China, 40.9 Mexico. 4.4 Distribution India has an extensive

4.4 Distribution

India has an extensive rail network, and a strong road infrastructure that is constantly growing. Villages are short distances apart from one another. The government has extensive distribution network in place. For locales near cities, there is a constant flow of goods between the city and village. For more rural or remote areas, there is a

strong distribution network available through the existing structure established for cooking fuels.

Possible Methods of Distribution:

We can sell our product directly to the government and allow them to distribute via their established network. This allows us to focus on other concerns besides distribution. However, there are a few disadvantages to this method. If there is a shortage of units, available units will first go to friends of distributors. Also, this method may take a while implement due to government bureaucracy.for cooking fuels. Possible Methods of Distribution: We can establish a partnership in which our partner

We can establish a partnership in which our partner distributes our product for us. This allows us to have a greater degree of control in where our product is distributed through their network than we would have if we worked with the government. However, extra expenses may be required to acquire the partnership.may take a while implement due to government bureaucracy. We can have a centralized sales force

We can have a centralized sales force of traveling salesmen that travel around the country selling our product. This gives us maximum control in distribution because we direct salesmen where to go. However, it may be cumbersome and costly to find and train a sales force.extra expenses may be required to acquire the partnership. 4.5 Local Financing There are a number

4.5 Local Financing

There are a number of organizations that perform micro-financing in India. Partnering with these established and reputable micro-lenders would probably be the easiest and best way to create local financing for our project.

MFI's in India:

Asian Development Bankcreate local financing for our project. MFI's in India: Grameen Foundation 4.6 Micro-Enterprise There is a

Grameen Foundationfor our project. MFI's in India: Asian Development Bank 4.6 Micro-Enterprise There is a strong entrepreneurial

4.6 Micro-Enterprise

There is a strong entrepreneurial climate in India so working with local entrepreneurs will not be a problem. Providing start-up capital and resources, such as training on how to operate and run a profitable business, will be required of us, however.

4.7 Marketing

We are only in charge of marketing if we do a partnership or have a central sales force; the government will do their own marketing.

Current Methods of Information Dispersal to Rural/Remote Villages

RadioMethods of Information Dispersal to Rural/Remote Villages Word of Mouth Television Newspapers and Written Media

Word of Mouthof Information Dispersal to Rural/Remote Villages Radio Television Newspapers and Written Media Written Signs 4.8

TelevisionDispersal to Rural/Remote Villages Radio Word of Mouth Newspapers and Written Media Written Signs 4.8 User-Business

Newspapers and Written Mediato Rural/Remote Villages Radio Word of Mouth Television Written Signs 4.8 User-Business Relationship Traditionally

Written SignsRadio Word of Mouth Television Newspapers and Written Media 4.8 User-Business Relationship Traditionally after the

4.8 User-Business Relationship

Traditionally after the product is sold, few services are provided. Many people fix

things themselves or call someone they know for assistance. However, it would be most useful to them if we provided the following continued services.

Installation and Training.to them if we provided the following continued services. Maintenance/repair. This is a crucial service. Many

Maintenance/repair. This is a crucial service. Many other social ventures in rural India have failed because they did not provide maintenance and repair of their project.the following continued services. Installation and Training. Warranty. This might be what encourages our users to

Warranty. This might be what encourages our users to invest in our light. light.

4.9 Possibilities in Partnerships

Any successful business plan must create lasting, meaningful partnerships to maximize the resources of existing organization.

Indian Government (State or National)to maximize the resources of existing organization. Various Electric Companies Kerosene/Petroleum Companies

Various Electric Companiesexisting organization. Indian Government (State or National) Kerosene/Petroleum Companies Indian Cricket Team/Bollywood

Kerosene/Petroleum CompaniesGovernment (State or National) Various Electric Companies Indian Cricket Team/Bollywood Stars Petroleum Conservation

Indian Cricket Team/Bollywood StarsVarious Electric Companies Kerosene/Petroleum Companies Petroleum Conservation Research Association Specific

Petroleum Conservation Research AssociationCompanies Indian Cricket Team/Bollywood Stars Specific Potential Partners Indian Renewable Energy

Specific Potential Partners

Indian Renewable Energy Development Agency (IREDA)Research Association Specific Potential Partners Tata Energy Research Institute (TERI) The Grameen Bank:

Tata Energy Research Institute (TERI)Partners Indian Renewable Energy Development Agency (IREDA) The Grameen Bank: offers microfinancing Barefoot College

The Grameen Bank: offers microfinancingAgency (IREDA) Tata Energy Research Institute (TERI) Barefoot College (Rajasthan, India): trains local women in

Barefoot College (Rajasthan, India): trains local women in how to maintain and service solar energy panelsInstitute (TERI) The Grameen Bank: offers microfinancing Sources: 1 . Indian Department for Industrial Promotion.

Sources:

1. Indian Department for Industrial Promotion. http://dipp.nic.in/. 8 March 2003

2. Personal Interviews. Achal Garg

3. Personal Interviews. Akhil Gupta

4. Press and Information, Embassy of India. Embassy of India, Washington D.C. www.indianembassy.org. 9 March 2003

5. World Bank, Confederation of Indian Industry. "Competitiveness of Indian Manufacturing: Results from a Firm-Level Survey." January 2002.

http://lnweb18.worldbank.org/sar/sa.nsf/Attachments/wbcii/$File/FACSReport.pdf

5. Business Models

Based on the previous section's description of the business climate and our understanding of our users, we have generated two business models that we feel would be successful in India. In addition to the Crafts for Lights Model and the Light Technician model, we will briefly assess the feasibility of numerous other models.

5.1 Overview of Business Model

Light Up the World (LUTW):

Light Up the World will determine the quality of the product and ensure that that quality

is maintained. They will also manage the international supply chain, negotiate discounts from manufacturers/suppliers, and manage the direction of international funds for new projects from established, already successful branches of the organization.

India Headquarters:

The India Headquarters can be a branch created by LUTW or it can be a partner in India. The regional headquarters would be responsible for manufacturing, distribution, and marketing in India.

Manufacturing

As previously stated, more research is necessary to determine whether or not it would be wise to manufacture our product in India.

5.2 Two Models Applied to India

Lights for Goods Model

By utilizing the skills of local artisans, we can promote local culture and generate sufficient income through selling the local art on the international market.

Manufacturing

All lights will be manufactured and assembled in one location to ensure quality control.

Distribution

Our agents will directly distribute these lights to the craftspeople that will take the units with them to distribute. Thus the selection process for our craftspeople and distribution is accomplished at once. Since there will also be technicians to service these lights, we could utilize the Maintenance Woman Model here

Assumptions

There are skilled craftspeople in every village.could utilize the Maintenance Woman Model here Assumptions Their products will sell, and enough people will

Their products will sell, and enough people will buy them to make a profit.Assumptions There are skilled craftspeople in every village. LUTW will be able to staff someone who

LUTW will be able to staff someone who can manage these retail aspects of the business or find an appropriate partner. of the business or find an appropriate partner.

Strengths of the Lights for Goods Model in India

Many different people are able to gain a secondary source of income.partner. Strengths of the Lights for Goods Model in India It celebrates local culture. It does

It celebrates local culture.people are able to gain a secondary source of income. It does not necessarily involve government

It does not necessarily involve government officials that would be corrupt.a secondary source of income. It celebrates local culture. It does not involve microfinance. Weaknesses of

It does not involve microfinance.not necessarily involve government officials that would be corrupt. Weaknesses of the Lights for Goods Model

Weaknesses of the Lights for Goods Model in India

It will take a long while to get every aspect of this model started.We must research how to determine what is art that would sell. Shipping and storing

We must research how to determine what is art that would sell.take a long while to get every aspect of this model started. Shipping and storing the

Shipping and storing the art may be problematic.must research how to determine what is art that would sell. We must find a partner

We must find a partner that would buy the art from us and sell it.would sell. Shipping and storing the art may be problematic. Light Technician Model This model is

Light Technician Model

This model is both self-sufficient and can be incorporated into other models. The servicing/maintenance aspect can be extracted and used independently of the complete model below, which also incorporates sales and marketing for the microenterprise.

Manufacturing

All lights will be manufactured and assembled in one location to ensure quality control -- either at a factory or perhaps at a training school.

Distribution

For villages near urban centers, LUTW will ship ready-made lights to a central office in the city and have the women come get it from us. For more remote villages, the units will be shipped to the closest city and then sent to the villages by utilizing existing cooking fuel distribution networks.

Assumptions:

Having a woman in this role will be culturally acceptable.existing cooking fuel distribution networks. Assumptions: She will be able to make enough money from her

She will be able to make enough money from her services and selling lights to sustain this as a full-time job.Having a woman in this role will be culturally acceptable. Strengths: Training in other electrical areas

Strengths:

Training in other electrical areas generates more wealth than from service of one product.lights to sustain this as a full-time job. Strengths: Provides significant and extended wealth generation. This

Provides significant and extended wealth generation.generates more wealth than from service of one product. This sort of model is in place

This sort of model is in place already in India.Provides significant and extended wealth generation. Problem areas There is limited application in urban areas.

Problem areas

There is limited application in urban areas.sort of model is in place already in India. Problem areas This may require involvement of

This may require involvement of local government.Problem areas There is limited application in urban areas. This may only work in regions with

This may only work in regions with some capital and openness to large-scale electrification and lighting systemsareas. This may require involvement of local government. Each village will have to be approached individually,

Each village will have to be approached individually, and will require significant time to train her.capital and openness to large-scale electrification and lighting systems 5.3 Key Assumptions/Deliverable Specifications

5.3 Key Assumptions/Deliverable Specifications

General Numbers

Income

Average person in India makes approximately $500 a year.General Numbers Income Estimated savings in kerosene per month due to one light: 20-40 rupees ($0.40-

Estimated savings in kerosene per month due to one light: 20-40 rupees ($0.40-Average person in India makes approximately $500 a year. $0.80). Lighting Unit LED (4 Per lamp)

$0.80).

Lighting Unit

LED (4 Per lamp) $1.00 / LED: $4due to one light: 20-40 rupees ($0.40- $0.80). Lighting Unit Fixture for lamp: $1 Cost of

Fixture for lamp: $1$0.80). Lighting Unit LED (4 Per lamp) $1.00 / LED: $4 Cost of battery: $4 Estimated

Cost of battery: $4Unit LED (4 Per lamp) $1.00 / LED: $4 Fixture for lamp: $1 Estimated battery life:

Estimated battery life: 1 year Distribution/Manufacturing of battery: $1.00$1.00 / LED: $4 Fixture for lamp: $1 Cost of battery: $4 Battery maintenance cost: $0.50

Battery maintenance cost: $0.50 / yearlife: 1 year Distribution/Manufacturing of battery: $1.00 PV System, $3/watt x 5 watts = $15 Cost

PV System, $3/watt x 5 watts = $15of battery: $1.00 Battery maintenance cost: $0.50 / year Cost to produce one unit: $25.50 Lights

Cost to produce one unit: $25.50

Lights for Goods Model

Start-Up Investment

2 lights per person: $50.50one unit: $25.50 Lights for Goods Model Start-Up Investment Supplies to start: $10 Training for sales

Supplies to start: $10Goods Model Start-Up Investment 2 lights per person: $50.50 Training for sales force: $10 per person

Training for sales force: $10 per person + salary2 lights per person: $50.50 Supplies to start: $10 Training for maintenance: $10 per person Micro-Enterprise

Training for maintenance: $10 per personstart: $10 Training for sales force: $10 per person + salary Micro-Enterprise Revenue Average time involved

Micro-Enterprise Revenue

Average time involved to make one piece of art: 30for maintenance: $10 per person Micro-Enterprise Revenue Our selling price to partners for such a piece

Our selling price to partners for such a piece of art: $60Revenue Average time involved to make one piece of art: 30 Amount given to artist till

Amount given to artist till investment recovered: $25Our selling price to partners for such a piece of art: $60 Amount to LUTW till

Amount to LUTW till investment recovered: $35$60 Amount given to artist till investment recovered: $25 Time to recover initial investment: 2 pieces

Time to recover initial investment: 2 pieces of art soldrecovered: $25 Amount to LUTW till investment recovered: $35 Amount given to artist after investment recovered:

Amount given to artist after investment recovered: $45$35 Time to recover initial investment: 2 pieces of art sold Amount to LUTW after investment

Amount to LUTW after investment recovered: $15sold Amount given to artist after investment recovered: $45 Maintenance Revenue Electrical appliances needing repair a

Maintenance Revenue

Electrical appliances needing repair a week: 10to LUTW after investment recovered: $15 Maintenance Revenue Price per repair: $0.50 Total revenue per week:

Price per repair: $0.50Revenue Electrical appliances needing repair a week: 10 Total revenue per week: $5.00 Weeks to pay

Total revenue per week: $5.00appliances needing repair a week: 10 Price per repair: $0.50 Weeks to pay off training fees

Weeks to pay off training fees (Assuming $1.25/week payment): 810 Price per repair: $0.50 Total revenue per week: $5.00 This model hinges on us being

This model hinges on us being able to dispose of all this artwork. The influx of artwork makes the scalability of this model somewhat questionable. If we can create a market for the artwork or sell it directly to resellers, we can quickly recover our investments.

Light Technician Model

It is important to note that though we are buying lights back at $15 per light, we can reuse the LEDs, PV components, casing, and other functioning components. This will be a great saving to us because all we need to do is replace the malfunctioning components, and thereby create a light for even cheaper than the original $25 price.

Maintenance Revenue

Electrical appliances needing repair a week: 10cheaper than the original $25 price. Maintenance Revenue Price per repair: $0.50 Total revenue per week:

Price per repair: $0.50Revenue Electrical appliances needing repair a week: 10 Total revenue per week: $5.00 Weeks to pay

Total revenue per week: $5.00appliances needing repair a week: 10 Price per repair: $0.50 Weeks to pay off training fees

Weeks to pay off training fees (Assuming $1.25/week payment): 1610 Price per repair: $0.50 Total revenue per week: $5.00 Micro-Enterprise Revenue Total units bought per

Micro-Enterprise Revenue

Total units bought per batch of sales: 10(Assuming $1.25/week payment): 16 Micro-Enterprise Revenue Average size of a village: 1500 people Average size of

Average size of a village: 1500 peopleRevenue Total units bought per batch of sales: 10 Average size of customer base: 300 people

Average size of customer base: 300 peoplebatch of sales: 10 Average size of a village: 1500 people Price charged per lamp: $8

Price charged per lamp: $81500 people Average size of customer base: 300 people Profit per light: $0.75 Profit per batch:

Profit per light: $0.75size of customer base: 300 people Price charged per lamp: $8 Profit per batch: $7.50 Miscellaneous

Profit per batch: $7.50people Price charged per lamp: $8 Profit per light: $0.75 Miscellaneous Costs to LUTW from One

Miscellaneous Costs to LUTW from One Light Technician

Stipend for participating in light buy back program: $15 per light (after 5 years of use)$7.50 Miscellaneous Costs to LUTW from One Light Technician Total cost per year to LUTW: 20

Total cost per year to LUTW: 20 lights x $15 per light = $300light buy back program: $15 per light (after 5 years of use) Stipend for batteries-for-books program:

Stipend for batteries-for-books program: $2 per batterycost per year to LUTW: 20 lights x $15 per light = $300 Total cost per

Total cost per year to LUTW: 200 x $2 = $400$300 Stipend for batteries-for-books program: $2 per battery Total = $400 per year (first 5 years)

Total = $400 per year (first 5 years)$2 per battery Total cost per year to LUTW: 200 x $2 = $400 Total =

Total = $700 per year (after 5 years and the used lights come back to us)LUTW: 200 x $2 = $400 Total = $400 per year (first 5 years) Sources: 1

Sources:

1. Indian Department for Industrial Promotion. http://dipp.nic.in/. 8 March 2003

2. Personal Interviews. Achal Garg

3. Personal Interviews. Akhil Gupta

4. Press and Information, Embassy of India. Embassy of India, Washington D.C. www.indianembassy.org. 9 March 2003

6. Bibliography

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Section 3: Local User Demographics

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Dasgupta, Sourav and Sudeshna Dasgupta. "Bengal Web." http://www.bengalweb.com/intro/wbengeo3.html. 9 March 2003http://cuts.org/cart-power- er-dev-abu.htm. 7 March 2003 Embassy of India, Washington D.C.

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The World Bank Group. "Poverty Net." http://poverty.worldbank.org/library/view/10203. 7 March 2003UK. http://www.vetwork.org.uk/ilsel.htm. 7 March 2003 Section 4: Business Context Indian Department for Industrial

Section 4: Business Context

Indian Department for Industrial Promotion. http://dipp.nic.in/. 8 March 20037 March 2003 Section 4: Business Context Personal Interviews. Achal Garg Personal Interviews. Akhil

Personal Interviews. Achal Gargfor Industrial Promotion. http://dipp.nic.in/. 8 March 2003 Personal Interviews. Akhil Gupta Press and Information,

Personal Interviews. Akhil Gupta8 March 2003 Personal Interviews. Achal Garg Press and Information, Embassy of India. Embassy of India,

Press and Information, Embassy of India. Embassy of India, Washington D.C . www.indianembassy.org. 9 March 2003 Embassy of India, Washington D.C. www.indianembassy.org. 9 March 2003

Section 5: Business Model

Indian Department for Industrial Promotion. http://dipp.nic.in/. 8 March 2003Section 5: Business Model Personal Interviews. Achal Garg Personal Interviews. Akhil Gupta Press and Information, Embassy

Personal Interviews. Achal Gargfor Industrial Promotion. http://dipp.nic.in/. 8 March 2003 Personal Interviews. Akhil Gupta Press and Information,

Personal Interviews. Akhil Gupta8 March 2003 Personal Interviews. Achal Garg Press and Information, Embassy of India. Embassy of India,

Press and Information, Embassy of India. Embassy of India, Washington D.C . www.indianembassy.org. 9 March 2003 Embassy of India, Washington D.C. www.indianembassy.org. 9 March 2003

of India. Embassy of India, Washington D.C . www.indianembassy.org. 9 March 2003 Briefing Book Table of