FranchiseModel:Sarvajal adopted a franchising model as it wouldpenetrate local markets. It created a network of suppliers by signingagreements with local entrepreneurs. They operate a hub and spoke system- workwith local entrepreneurs, provide them with water purification technology andsupport them in maintenance and other back end services.
Customers buy a prepaid smart card, which can berecharged with the cell phones, swipe it over the sensor of the machine to getthe information of water quality and the credit balance in their card. They selectthe measure of water required and fill their containers accordingly. Water ATMsprovides access 24 hours and 7 days a week. These water ATMs have significantlyreduced the time spent on water collection. And also creates income-generatingopportunities and also proves to be a business opportunity for the franchiseesthat operate them. Monitoringwater quality:If something goes wrong in any of the ATMs, Sarvajalis immediately informed through its customized ERP system that manages waterbusinesses from the source to consumption. This system integrated Sarvajal’scloud based Soochak system which monitors the status of its reverse osmosis andultra-violet filtration units, maintenance and its supply chain units.
Sarvajal’s different water filtration framework reduces99.9 percent of germs and guarantees that minerals, for example, fluoride whichcan be unsafe in overabundance, fall inside suggested levels. Costto the company:The total cost of setting the RO plant is around 5 lakhto 10 lakh. Franchisees pay 40% of their earnings to the company but if thefranchisees own the machine, they pay only 20% of their earnings to thecompany. The company also provides advertisement and maintenance support. Thecompany has partnered with local entrepreneurs, panchayats and community-basedorganizations to run the water treatment plants. Local community members arehired and are given proper trainings to manage the purification units.
Theselocal partners earn up to Rs 35000 per month. The projects are monitored ondaily basis to ensure purity. Innovations:1- Lowcost water treatment plant.
2- Soochak-Monitoring device for each water system which gives real-time information onwater production and maintenance.3- Suvidha-Pre-payment mechanism for franchisees.4- SolarWater ATM- A solar- powered, cloud connected RFID-based and Cash-less watervending machine. TargetMarket:Sarvajal is currently targeting only 60% of totaldrinking water market of its operating areas.It doesn’t target 30% of the population which is BPLwho cannot afford to pay for water and to 10% that can afford to buy a domesticwater purifier. Marketingand Promotional strategies of Sarvajal:1- ValueProposition- “Clean water is accessible right in the beneficiaries’ village andclean water is vital to health.”2- BrandPromotion activities- Advertisements/awareness campaigns in new villages.3- HealthAwareness activities- Events with role plays and games for kids.
4- Directand Indirect contact with end customers.5- Trainingson basic business practices- Marketing training for franchisees every twomonths.6- Tollfree landlines to have direct feedback from clients.7- Expandsreach through local networking, face-to-face meeting and a regular telephonecontact.
8- Establishesand maintains contact with local communities.9- Loyaltyreinforcements- Monthly pre-paid cards for consumers and free containercleaning services. For franchisees, incentives onvolume sold. Aftersales Services:Water quality control:Water quality control is done by a controllingdevice that reports automatically to the Sarvajal’s Headquarters every day.Sarvajal also provides free of charge container cleaning services to itsfranchisees.Maintenance:E-monitoring device on each machine counts liters,detects technical issues and checks all repairers’ work and directlycommunicates with the HQ. Sarvajal can also block the Water ATM if it faces anymaintenance issues. Spare parts are also available easily as the technology islocal.
Thecustomers’ benefits:1- Sarvajalcosts less than a cup of tea. (30 paisa for a litre)2- Affordable.3- Assuredquality.4- Reliable24*7 access.5- “Waterinsurance” against water borne diseases. RevenueModel:Old Business model:Franchisees operate the machine and sell water at Rs6 for 20 liters batch. For the first month, the entire revenue is kept by thefranchisees and from next month onwards 40% of water sales revenue is given toSarvajal.
New Business model:Franchisees operate and sell water at Rs 6 for 20 litersand additional Rs 4 for delivery at the door steps. For chilled water theycharge Rs 9. They keep 100% revenue for the first month and from second monthonwards, 20% is given to Sarvajal. Successof Sarvajal:Social Impact: 1- 154plants have been set up in just 4-5 years.2- Morethan 200,000,000 liters of clean drinking water served.
3- Morethan 100000 regular customers in 6 states.4- Tremendousdecrease in water-borne health diseases.5- Assolar water ATMs can be placed in any locations, it reduces caste issues andcan deliver water in any community overcoming social segregation.6- 430000people are served daily across 16 Indian states. Economical and Environmental Impact:1- 668+purification units, 332+ solar powered, clouds connected water ATMs are establishedwhich generates 26 crore economy rise.
2- Sarvajal’spriced at Rs. 6 for 20 liters and additional Rs. 4 for home delivery. Easyaccess and reliability of safe drinking water almost 100000 beneficiaries andthis number is increasing.3- Positiveimpact in remote areas by solving the problems of safe drinking water withsolar water ATMs.4- Sarvajalhas been able to bring down the waste water generated drastically. Thepurification technology is 6 times more effective than a domestic purifier.5- Jobcreation opportunities: 400 plus employment opportunities have been createdthat encourage clean water in communities.
6- Inorder to reduce energy needs of the franchisees, it has developed decentralizedsolar powered ATMs.7- Noplastic disposable containers adding onto plastic pollution Sarvajalfor Urban India:While rural India is flourishing with communitylevel water solutions, urban India remains untouched by developments andinnovations and continues to face challenges of drinking water. Another challenge that urban people face isdepending on non-assured sources of water or is left with costly alternativeslike buying Rs15-20 water bottle.
Plastic bottles in turn add to the wasteissue and builds contamination.HowSarvajal faced these challenges?1- DecentralizedHub and Spoke drinking water solutions for urban slums:In order to serve areas which are notwell-equipped and non-piped areas, Sarvajal uses Hub and Spoke model. Thismodel is outlined in a way that serves areas which are not well-equipped withpower or channeled water supply. This model comprises of a localizedinstalled purification unit and a network of water ATM units installed atmultiple locations within the community. Purification technology and capacityof the purification unit is chosen on the basis of quality of raw wateravailable and regularity of power supply/target population respectively.Transporting water from thepurification site to the ATMs requires a modified tank-mounted vehicle thatwould collect water from the site of purification and fill the ATMs throughno-touch transfer mechanism.
As soon as the water level goes down a certainlimit in the ATM, an alert will be generated and will be refilled by watercarried by the vehicle from the plant site. 2- DemonstratedExperience in Delhi and Bhubhaneshwar: Piramal Sarvajal has pioneered theHub & Spoke business model and has installed it effectively in 8resettlement colonies (slums) at Delhi with the support of Delhi Jal Board. After Delhi, Bhubaneswar is theprincipal Smart City to setup a ‘Hub N Spokes’ water ATM project and has signedup with Piramal Sarvajal to set up the decentralized safe drinking watersolution through 4 Hub Purification Units and 40 ATMs.
