ALC India 2009

Brief Profile
ALC India - Aug09

Brief Profile

Page 1

ALC India 2009

Access Livelihoods Consulting (ALC) India is a management consulting organisation, started with an aim of promoting sustainable livelihoods for the poor. ALC India was initiated by three management professionals with 10 years experience in promotion of variety of livelihoods at grass root level. It was registered in the year 2005, as Private Limited Company under the companies act, with the Registrar of Companies at Hyderabad. ALC Indias Mission is to enable equitable and sustainable economic development by provision of professional techno managerial services to individuals and organizations. It will ensure that the poor are recognized as active contributors to growing economy and enable equitable share of wealth gets generated and distributed in favour of them. ALC India envisions itself enhancing directly (0.1million) and indirectly (0.9 million) the livelihoods of 1 million economically disadvantaged households by March 2014.

ALC India Practices

Products & Services Innovation To keep pace with continuous changes in market based economy and socio politico-legal structures, we need to address both latent & future needs. ALC India innovates products and services to address this. We offer pro bono training programs, develop web-based services, publish magazine and conduct events for educating the stakeholders. Wide Service Base Realizing the importance of working with a variety of stakeholders, ALC India aims to promote sustainable livelihoods for the poor through individuals, business, government, funding agencies, INGOs/NGOs, CBOs, consulting organisations, trusts, foundations, research organisations and academic institutions Integrated Support Services ALC India provides integrated support services on livelihoods. It works with various stakeholders at different levels (individual, household, community & society), across value chain (inputs, process & outputs), improving five capitals (human, social, financial, physical, natural), aiming multiple outcomes (increased income, decreased expenditure, improved productivity, improved skills, managed risks, greater employment) in a variety of contexts (social, legal, political, technological, economic, climatic, environment) through diverse institutions (cooperatives, societies, companies, trusts, trade unions). Cost Conscious Services ALC India provides consulting through differently priced package of services based on the nature of the organization. Cost saving measures and low overheads are also key strategies for providing affordable services to the smaller organisations. This strategy is useful in cross-subsidizing services for small NGOs and CBOs. 40% of the consulting time is dedicated for smaller entities and this is either low-cost or voluntary. Social Contribution ALC India has predefined limits on returns to various stakeholders such as clients, shareholders, employees, and investors. From the resources saved it contributes towards: Low cost training programmes to grassroots level organisations, Development advocacy for livelihoods aspects, Fellowships for development entrepreneurs, Voluntary Time contribution to small NGOs and CBOs Brief Profile Page 2

ALC India 2009

Promoting Optimal Behaviour ALC India believes in and operates on the philosophy of balancing the extremes such as centralization & decentralization, top-down & bottom-up approach, globalization & localization and so on.

ALC India Values

Both in the internal and external transactions of ALC India it would like to maintain and follow the values mentioned below a. Non Discriminatory Approach Respect and honour all legitimate and diverse approaches to attain the purpose of the organization. b. Positive Bias Towards marginalized communities, people, livelihoods, locations and organizations c. Learning Teams and Organization - Zealously acquire knowledge and apply it creatively in all our engagements with/for the poor. d. Excellence By being cost & resource conscious and managing delivery time e. Transparency & Accountability In all transactions both financial and project based f. Green Practices Advocating and practicing sustainable processes which respect the natural resources

Key Outcomes
With the economic dimensions of the livelihoods of the poor as its core focus, ALC India will work for the 5Es: a. enterprise promotion and development promoting individual and group enterprises of the poor to enable them to engage with the market and benefit b. employment generation and development developing programs to enable poor to position themselves so that they can use and benefit from emerging opportunities c. equitable economy - promoting optimum accumulation of wealth by all, sensitising organisations and individuals to value and remunerate sufficiently the contribution of the poor so that they ensure inclusive and equitable growth, not in a spirit of charity and social safety, but out of a belief that growth is sustainable only if equitable. d. economic growth and development Ensuring creation/revision in policies and legislation aimed at enhancing the lives and livelihoods of the disadvantaged and ensuring that poor benefit from them e. empowermentensuring that poor are adequately meta-skilled to adapt to any environment; adequately motivate and equip them for demanding their rightful share

Brief Profile

Page 3

ALC India 2009

in the economy institutions of excellence self sufficient, self managed capability to manage

Service Portfolio ALC India has broadly visualised the nature of work required for the economic development issues in 9 domains/verticals: 1. Program & Project Management (PPM) - (including designing of projects & programs, audit, project appraisals and evaluation, process monitoring, project management information systems, turnkey project implementation and on-site handholding) 2. Finance Management & Administration (FMA) - (including providing access to capital, training in financial management, book keeping, and accounting, finance management policies, sustainable financial management, gender budgeting and credit worthiness ratings) 3. Information, Communication & Knowledge Management (ICK) - (including products for information dissemination like videos, books, magazines, workshops, development of management information systems and knowledge management) 4. Human Resources Management (HRM) - (including assistance with recruitment, design and development of job portal, human resource policy development, in-house training, employability and management of human resource cycle in organizations) 5. Institution & Organization Management (IOM) - (including envisioning, planning, design of monitoring tools, organisational incorporation, organisational structuring, establishment of systems, institution rating and governance norms and mechanisms) 6. Marketing and Business Development Services (MBD)- (including market intelligence, market research, market plans, direct marketing, strategic market development, brand development, creative brand and product management) 7. Risk and Disaster Management services (RDM)- (including both productive and consumptive risk factors through asset insurance, health insurance, life insurance, loan insurance, mutual insurance, disaster mitigation, biodiversity and climate change) 8. Legal Environment and Advocacy (LEA) - (including analysis of critical policies, policies formulation and policies implementation) 9. Technology Development and Management (TDM) (including pro-poor technologies in all fields from agriculture to forest produce including communication technology)

Focus Communities 1. Urban Poor Rapid urbanization coupled with low yields of traditional income and production activities the rural poor are forced to search opportunities in growing cities and towns. In cities due to poor planning their living condition is worse than in their villages.

Brief Profile

Page 4

ALC India 2009

2. Wage including Migrant Labour (Construction & Agriculture) Almost 50% of the poor are labour who are skill and asset less. Searching regular wage labour migrate places across country and also other countries. 3. Small and Marginal Farmers 60 70% of agriculture production is done by small and marginal farmers especially in rain fed areas. Current market conditions and economics of production are not favourable for them. Latest NSS survey indicates their growing discontentment with their present practice. However, there is ecological and employment value for these production systems to exist. 4. Artisanal Fisher Folk & Small Livestock Holders Fisher folk households with local catamarans and small livestock holders (milch and small ruminants) are vulnerable communities. Many of them are migrant and pastoralist. Depletion of natural resources and growing competitive usage of resources have threatened their livelihoods. 5. Asset Less & Small Artisans & Weavers Tied to the master crafts person for forward and backward services linkage, these artisans are struggling to make living within the limited wages paid out. Changing lifestyle needs and lack of market intelligence systems to understand global consumer needs are the key bottlenecks. 6. Forest Produce Gatherers Living in fringes or within the reserved forests these tribals dependent on the forest produce available for income during the summer season when the agriculture and other income is very less. Market imperfections, high degree of intermediation, inaccessible geography and poor infrastructure make them vulnerable. Their rights on the resources are always a point of debate. 7. Internally Displaced Communities Large government initiatives infrastructure, special economic zones, industrial activities, mines and other works result in huge displacement of communities. These communities are quiet often not compensated enough or supported to rebuild their livelihoods. 8. Disaster Prone Communities Communities living in disaster prone areas where there are frequent floods, earth quakes, drought and other climatic externalities including desserts and coastal areas are vulnerable. 9. Micro and Small Entrepreneurs - Micro and small entrepreneurs are providing variety of services and products to meet the needs of consumers through unorganized markets. These entrepreneurs receive very little formal support and are constrained by lack of access to resources. 10. Other Vulnerable Communities Differently abled, HIV Infected and Affected, Chronic Diseases Sufferers, Single Women, Marginalized Castes, Unemployed Youth and other vulnerable communities are affected by multiple dimensions of poverty.

Brief Profile

Page 5

ALC India 2009

Current Performance
ALC India in the last four years has serviced more than 100 organizations by providing variety of services. It has worked in 23 states through 185 projects. The financial performance can be summarized as below
Access Livelihoods Consulting India Pvt. Ltd. # 12-5-12/4/1, Vijayapuri, Tarnaka, SECUNDERABAD - 500 017 Financial Statements and Projections for the period FY 05-06 to FY 10-11 (In Rupees) As on 31 As on 31 As on 31 As On 31 Projected As S No. Name of the Account Mar 06 Mar 07 Mar 08 Mar 09 on 31 Mar 10 Balance Sheet Items Liabilities 1 Share Capital 1,00,000 1,10,000 2,00,000 1,75,000 2,00,000 2 Reserves & Surplus 63,757 1,30,156 2,41,603 3,09,085 4,42,656 3 Un-secured Loans 50,000 25,000 9,89,966 14,75,450 20,00,000 4 Sundry Creditors 22,002 51,949 5 Payables 22,531 6,754 11,37,211 6,00,000 Sub Total 2,58,290 2,71,910 14,31,569 31,48,695 32,42,656 Assets 1 Fixed Assets 24,101 80,067 81,238 81,804 10,00,000 2 Current Assets 2,15,289 1,75,043 5,82,296 14,95,596 20,00,000 3 Preliminary Expenses 18,900 16,800 14,700 12,600 10,500 4 Investments 7,53,335 15,58,695 2,32,156 Sub Total 2,58,290 2,71,910 14,31,569 31,48,695 32,42,656 P & L Account Items Income 1 Consultancy Fee 3,46,732 26,72,802 39,85,976 51,80,384 67,33,510 2 Subsistence Receipts 3,162 4,32,537 5,30,802 2,33,348 3,03,308 3 Other Income 6,022 6,28,018 8,16,303 4 Work in Progress 1,13,000 1,46,878 Sub Total 3,49,894 31,11,361 45,16,778 61,54,750 80,00,000 Expenses 1 Project Specific Expenses 2,23,422 16,84,458 36,85,270 52,33,182 68,02,137 2 Administration Expenses 38,432 1,90,874 5,30,263 8,21,297 10,67,529 3 Personal Expenses 36,283 11,51,770 2,64,553 4 Net Profit 51,757 84,259 36,692 1,00,272 1,30,334 Sub Total 3,49,894 31,11,361 45,16,778 61,54,750 80,00,000

Projected as on 31 Mar 11

2,50,000 6,82,656 20,15,000 6,10,344 35,58,000 12,00,000 21,00,000 8,000 2,50,000 35,58,000

1,01,00,265 4,54,963 12,24,455 2,20,318 1,20,00,000 1,02,03,206 16,01,293 1,95,501 1,20,00,000

Brief Profile

Page 6

ALC India 2009

More detailed information on the financial and organizational performance can be obtained from the Annual Reports of the organization (available for all the four years).

Future Growth
ALC India has developed good governance, operations and management systems. At the same time it has established its brand value and also presence across India. Therefore, we expect to grow in the following parameters # 1. 2. 3. 4. 5. 6. 7. 8. 8. 9. 10. 11. 12. Growth Parameter Poor Directly Benefited Poor Indirectly Benefited Direct Turnkey Projects Implemented Innovative Products & Services Organizations Serviced Community Enterprises Serviced Directly States Serviced Projects/Programs Serviced Staff at ALC India Branches or Units Network Organizations Turnover Rs Million Reserves & Surplus Rs Million FY 08 09 FY 13 14 1,000 100,000 100,000 900,000 Nil 10 4 10 >100 >500 2 50 23 27 186 1,000 15 100 1 5 1 4 6.1 100 0.45 2.5

ALC India will have a group company holding several units servicing the common cause of equitable and sustainable economic development. However, in the next five years we hope to promote and develop the following institutions on priority a. Access Livelihoods Society To undertake innovations and demonstrative livelihoods interventions in the prioritized field areas. b. Institute of Equitable & Sustainable Economic Development To undertake management and leadership courses both short term and long term courses meeting the knowledge needs of different age groups. c. Livelihoods Investment Fund To provide bridge capital, guarantees and other facilities to the pro poor community enterprises. d. Access Livelihoods Media Services To provide media services covering aspects related to economic development. ALC India would also like to expand its service base to South Asia in the next 5 years.

Social Return on Costs

The social returns on the costs are being calculated using select direct projects which ALC India has directly involved on long term basis. Although ALC India is still not directly implementing projects it hopes to do in near future which will improve accounting possibilities for the organization. The calculations are presented in the table below Brief Profile Page 7

ALC India 2009

# 1 2 3 4 Project Name Youth Employability training Promoting Dairy Cooperatives Promoting Weavers Cooperative Promoting Cooperatives for Organic Farming Client Name CCF* WVI Dharwad** Chitrika CSA*** No of Additional Effective HHs Income Per HH Years 280 3,000.00 10 1,650 5,000.00 10 150 7,500.00 10 450 5,000.00 10 Total Economic Value Added 84,00,000.00 8,25,00,000.00 1,12,50,000.00 2,25,00,000.00

12,46,50,000.00
Cumulative Turnover of ALC India Total Economic Development due to ALC India Turnover of ALC India as a percentage of Economic Development resulted 1,35,04,764.00 12,46,50,000.00 11%

Note
CCF* WVI Dharward** CSA*** After considering 30% attrition rate (Actual Total-400) 3 Registered Cooperatives, 8 in process with 100 - 200 members/cooperative 6 Producer Cooperatives with 60 -100 members/Cooperative 0.7*400 8*150 360 -600

It can be observed easily that even with very small proportion of directly attributable projects the additional costs of ALC India is not more than 11% additional cost in the total system. Considering the fact that the investments made on ALC India generates at least 9 times more value for the poor we believe that it has lot of potential to grow and contribute to the poor. These calculations do not include the benefit accruing to the community and overall economy due to the activities of ALC India. For example it does not include the additional benefits accruing the artisans/weavers in the area where the community enterprise is operational, purely because of additional competition and alternate service provision possibilities. In many areas it has been observed that benefits are huge like in a particular area the wage rates have improved by 25%.

Brief Profile

Page 8