Market Development, `

an Evolutionary Process for Rural Sanitation in Bihar, ` India `

Primary Author : BIKAS SINHA

Secondary Author : SANJAY SINGH

GENEVIEVE KELLY

The Project

The Problem

Landscape findings and business model proposed

Initial plan and implementation

Learning leading to improvisation

Achievements

Sustainability & scale-up plan

Flow of presentation

2

3SI (Supporting Sustainable Sanitation Improvements)

A BMGF supported project (2012 to 2017)

Partners: Monitor Deloitte, Water for People, Path and WASHi.

Objective:

– Work with private sector to establish a sustainable, market based

supply chain for sanitation products and service.

– Increase demand for improved sanitation products and services offered

by the private sector

Vision of Success:

– Increased access to and use of improved sanitation

– 10% Increase in rural households with access to IHHL priority districts.

The Problem

page 4

India: Of 1 Billion open defecator across

the globe; 600 million live in India

Bihar (The Intervention State): Population: 104 million

88.7% Rural

73 % of rural Bihar (67.4 Million)

defecate in open

BIHAR INDIA

Key landscape findings

Fragmented supply chain for toilets

.

Product gap: Toilet that are affordable are not aspirational and those aspirational are not affordable.

Subsidies distorted the market

Toilet lie low in the hierarchy of need

Liquidity and affordability across population segments; limited / no access to credit for toilet

PAGE 5

Initial plan and intervention

Created 3 toilet models (products), differentiators were Pit, Doors and roofs, Plasters and tiles

PAGE 6

Standard Super Deluxe

440 $ 225 $ 320 $

Deluxe

Initial plan and intervention

PAGE 7

TSP ensured availability

of •All toilet components

•Trained masons and labors

• Information / linkages for

government incentive

scheme

Established Turnkey Solution Provider

Initial plan and intervention

PAGE 8

Quality assurance

At household level At production center

Initial plan and intervention

PAGE 9

Documentation and reporting

MIS

Helpline

Awareness generation and toilet sales

One-to-group One-to-one

Financial inclusion

Consumer loan

Enterprise loan

Learning leading to improvisation

PAGE 10

–

IMPROVISATION Promoted basic model

• Cosmetic components not promoted

Cement Ring Manufacturer plus (CRM+) model: CRM with (+) has

• Other cement components • Linkages with trained mason • Linkages with other VCP

From selling to facilitating • Identify gaps and intervene only when required

LEARNINGS Irrational preference deferring the purchase decision

• Consumer gravitating to the most expensive model

Problems associated with TSP model

• Working capital & expertise constrain • Preference of traditional outlet • High volume of sales required

Salesmen not accepted

• Negative experience with toilet promoters

Learning leading to improvisation

PAGE 11

–

IMPROVISATION Prioritize areas with presence of cement rings, ensure

• Quality assurance • Service delivery

Aggregation of relevant materials done at state level

• Non trade cement • PVC doors (from SEZ) with latch on both sides

Pre-fabricated toilet model developed

• Avoid mason dependency • Construction time 4-6 Hrs

LEARNINGS Cost of rings comes down with time / experience

• 6 months or 1000 rings • Intensive support required in the first month • Low orders initially

Aggregation can reduce the cost by additional 10%

• Cement shares more than 20% of overall toilet cost

• Doors – low quality and high price Construction disrupted for around 4 months due to

• Agricultural season • Rain and extreme winter

Achievements

PAGE 12

1375 Mason trained 192 sanitation enterprises linked, 39 availed

loan from MFI linked with the project

170,000 HH contacted; 16014 Household purchased toilet; 982 HH purchased

through loan. (36% are BPL)

0

200

400

600

800

1000

1200

1400

1600

# HH purchased toilet Operational cost per toilet # BPL HH purchased toilet

Indicators Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jly Aug

13 13 13 13 14 14 14 14 14 14 14 14 14 14 14 14 15 15 15 15 15 15 15 15 # SSP 5 6 6 5 7 14 17 23 24 27 33 38 38 37 38 38 38 38 36 39 37 37 36 37 # Districts 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 6 8 14 15 16 17 # Blocks 2 5 6 6 6 8 16 20 23 25 31 36 37 37 38 39 40 46 53 58 71 84 93 102

# Toilet 00 03

00 10

00 08

00 08

00 06

00 68

01 27

01 82

03 37

04 66

05 39

06 29

08 13

08 18

08 79

10 67

11 00

10 86

11 54

13 01

13 79

15 27

14 28

13 22

Toilet sales & customer acquisition cost

PAGE 13

CRM+ model

introduced

Scale - up

started

521 $

64 $ 09 $ 11 $

Social Behavior Change communication

Sales and marketing through NGO linked with MFI

Activating more MFIs for sanitation loans and demand generation activity

Aggregation of key toilet components at the state level

Transferring toilet selling skill to the NGO arm of MFI

Sustainability and scale-up plan

page 14

empowering people of India to lead healthier lives.

Thanks.. S. Shankar Narayanan: Chief Technical Officer, PSI India

Arunesh Kumar Singh: Director Programs. Bihar, India

Support for these studies was

provided by Ananya: of the Bill &

Melinda Gates Foundation. The

views expressed herein do not

necessarily reflect those of

Ananya or of the Bill & Melinda

Gates Foundation.