aahaariim

Citizens for Accountable Governance

Theme: Nourish to Flourish; Reducing Malnutrition

Submitted By: Anshuman Bharati, Nitansh Platia, Pulkit Bohra, Rohit Agarwal, Shobhit Saxena College: IIM Ranchi

Aahaar


Research Methodology

Labour get

paid in terms of

food credits

Food credits

can be used in

Community

Kitchen

We set up a factory to

produce nutritional

biscuits and candies

We set up a

community kitchen

in each slum

Slum Dwellers are daily

wage earners who do

not find work for 8-10

days a month

They can be

employed on these

days

Food Security in Urban

Slums is largely a

Neglected Issue

Social Enterprises are

best placed to address

the Issue

Solution Overview

Field visit to slums in Ranchi (Jharkhand): Hatma, Katru, Pahadi Tola, Islam Nagar

Research on Slums in Bhopal and Hyderabad Bhopal (Madhya Pradesh): Indira Nagar, Gautam Nagar Hyderabad (Andhra Pradesh): Indiramma

Focused Group Discussion Jharkhand Mahila Samakhya

Subject Matter Expert Opinions Prof. Ramesh Saran, Dept. of Economics, Ranchi University Dr. Rajiva Ranjan, Chief Medical Officer, IGMC&H Shimla Dr. Monica Agarwal, Pediatrician, Dhanwantari Hospital, Bareilly Dr. Rahi – Rajendra Institute of Medical Sciences, Ranchi Dr. Sahela – Rajendra Institute of Medical Sciences, Ranchi


Food Security in Urban Slums: A neglected issue

Source: Food and Agriculture Organization (FAO), UN

The largest cities by population are moving to the developing world, increasing the people residing in the urban slums

Rank 2000 2050

Mumbai 5 2

Delhi 6 3

Kolkata 8 8

Source: World database of large urban areas, Nordpil.com

0 50 100 150 200 250

Developed World

Middle East/North Africa

Latin America/Caribbean

Sub-Saharan Africa

0

200

400

600

800

Rural Urban

Global food insecure population distribution (millions), 2010

Total undernourished people by region (millions), 2010

Source: Food and Agriculture Organization (FAO), UN

Not Enough/ Good Food

Disease or Illness

Lost time from school

or work

Insufficient funds to buy

food Resulting Vicious

Poverty Cycle


Poor slum dwellers need food which is Safe, Sufficient, Affordable and Easily Accessible

IS IT EASY TO CONSUME Is it ready to eat?

Does it fit my culture? Does it taste good?

IS IT EASY TO FIND? Is it close by? Is it available when I need it? Is it in my budget?

IS IT GOOD FOR MY HEALTH? Do I have enough? Is it nutritious? Is it safe?

DO I KNOW WHAT THE RIGHT CHOICES ARE?

Climate Change will increase uncertainty In food production

Growing population means increasing demand for food

Increasing land degradation and demand for cash crops

Large fluctuations in food prices and rising inflation

Innovation in agricultural machinery and farming methods is stagnating

Challenges are Growing Every Passing Day Current Concerns of an Urban Slum Dweller

Nasreen Khatoun’s tiny, cramped and poorly built home is in the Bhagwanpura slum in New Delhi. Nasreen lost two of her children to malnutrition when they were just two years old. Her daughter was the first to pass away. “She died of acute malnutrition; she seemed to have dried up. She was just skin and bones,” says Nasreen. “Prices have doubled of everything in the last one year. Everything is expensive the children eat only one meal a day. There is no assistance. We don’t know what to feed our children.”


Business Model and Value Proposition

Governments see slums as illegal habitats

The private sector finds slums unattractive for

business

NGOs have not made enough progress upgrading slums

Food security in slums is not a priority for governments, the private sector and NGOs

Aahaar

Access

Affordability

Absorption

3As of Food Crisis

Aahar’s Value Proposition

Source: Task Force on Improving the Lives of Slum Dwellers, UN Millennium Project, 2005


Business Model and Value Proposition

Our proposed solution combines the principles of banking and insurance to create a sustainable model to eradicate hunger

Stak

eho

lde

rs

Women - Work as maids

in nearby households Most work only in

mornings and evenings

Men - Daily wage earners

Do not find work for approx. 8-10 days in a

month

Children - Some of them

work as rag pickers Like to eat biscuits,

candies and street food

Available Free Time

Work in a biscuit factory which produces nutritional biscuits and candies. In

return, they earn food credits which can be used in a community kitchen

Work in the community kitchen. The profit earned from the biscuit factory is used to run the kitchen. It acts as a food insurance institution – providing food to

people with food credits.

Work in factory or Community kitchen

Earn food credits Get food in

community kitchen


Pilot Project: Indira Nagar, Bhopal

Total Population

52,000

18% live on less than $1 a day

9375

40% are willing to avail our services

3750

40% are of working age

1500


Revenue Model

+

300,000

60,000

42,000

70%

8,400

20%

252,000 Monthly biscuit demand

For our demand calculation, we considered a population base of 300,000. Considering a family consists of 5 members, the total number of families comes out to be 60,000. Out of that, if 70% consume biscuits and out of these 70%, if we can capture a market size of 20%, our target number of families will be 8,400. If each family buys 1 packet of biscuit per day, the monthly demand will be 252,000.

Re. 1 out of Rs. 4 Based on our research, we found that the cost of labour for Rs. 4 biscuit packet is Re. 1. So, if we can get workers to work for the biscuit factory in exchange of food credits, we can save Re. 1 on each pack of biscuit.


Revenue Model (contd.)

Biscuit Demand – 252,000

Margin on each pack of biscuit – Rs. 2

Total saving per month – Rs. 5,04,000

Cost of food for an adult and a child for 8 days per month (as we will give food credit worth 100 days per year) = 40x8x1500 = Rs. 4,80,000

Income Statement – Community Kitchen (in Rs.)

Revenue 483000

Less: Cost of Goods Sold 362250

Gross Profit 120750

Operating Expenses

Rent 5000

Wages NIL

Depreciation 9660

Fixed Cost 1666.5

Other Operating Expenses

77280

EBIT 27143.5

Tax 8143

PAT 19000.5


Aadhar Tries to Mitigate Major Challenges

Finances might not be

efficient

Though Aahar is operating with thin margins, it does not require huge upfront investments, giving it the required flexibility

Limited Infrastructure is

difficult to manage

Aahar operates in Urban areas which provides basic infrastructure. Also factories would be located near slums.

Consumers with limited and

fluctuating incomes are

difficult to serve

Bank-Surance scheme offered by Aahar guarantees food for the slum dwellers

Partners across the value

chain are driven by profits

and not quality

Aahar manufactures food on its own and also its distribution system ensures safe & nutritious food

Challenges

&

Mitigations


Significant Impact in the Coming Years

Sales at Community

Kitchen

Sales of nutritious

food

Insurance Policy

Total Impact

More than INR 100 per day

INR 50- INR 100 per day

Less than INR 50 per day

20%

62%

18%

Total Number of Slum Households in India are 1.37 Crore

62% of the Household income in urban slums range between INR 50 to INR 100 per day

Imp

act

(No

. Of

Ho

use

ho

lds)

Year

8.5 lac

40 lac

65 lac

2 4

Considerable Scalability Targeted

65 lac households targeted in the next Four Years

Source: National Census, 2011


Appendix


Survey Analysis

18%

62%

15%

0% 20% 40% 60% 80%

Less Than 1

1 to 3

3 to 5

Earnings Per Day($)

Assured No. of Meals Per Day

16%

33%

41%

0% 10% 20% 30% 40% 50%

None

1

2

32%

27%

41%

0% 10% 20% 30% 40% 50%

25-30

22-25

22 or less

16%

84%

0% 20% 40% 60% 80% 100%

Yes

No

Do you know about Nutrient requirements


Survey Analysis Contd…

32%

63%

5%

0% 20% 40% 60% 80%

Yes

No

Can't Say

Is PDS Effective?

Biscuit Brand Preference

25%

22%

53%

0% 20% 40% 60%

Parle G

Tiger

Local Brand

70%

23%

7%

0% 20% 40% 60% 80%

Prefer Buiscuits

Do not Prefer

Can't Say

Biscuit Preference

18%

13%

12%

57%

0% 10% 20% 30% 40% 50% 60%

Breakfast

Lunch

Dinner

Anytime

Biscuit Consumption


Recommended Dietary Allowances

Sedentary Moderate Heavy Lactation

Man Woman Man Woman Man Woman Pregnant Women 0-6m 6-12m

Protein(g) 60 50 60 50 60 50 +15 +25 +18

Fat(g) 20 20 20 20 20 20 30 45 45

Net Energy(Kcal) 2425 1875 2875 2225 3800 2925 +300 +550 +400

Calcium(mg) 400 400 400 400 400 400 1000 1000 1000

Iron(mg) 28 30 28 30 28 30 38 30 30

Vitamin A : Retinol 600 600 600 600 600 600 600 950 950

βcarotene(µg) 2400 2400 2400 2400 2400 2400 2400 3800 3800

Thiamin(mg) 1.2 0.9 1.4 1.1 1.6 1.2 +0.2 +0.3 +0.2

Riboflavin(mg) 1.4 1.1 1.6 1.3 1.9 1.5 +0.2 +0.3 +0.2

Nicotinic acid(mg) 16 12 18 14 21 16 +2 +4 +3

Pyridoxin(mg) 2 2 2 2 2 2 2.5 2.5 2.5

Ascorboc acid(mg) 40 40 40 40 40 40 40 80 80

Folic Acid(µg) 100 100 100 100 100 100 400 150 150

Vitamin B12(µg) 1 1 1 1 1 1 1 1.5 1.5


Commodities Unmet Need(%)

Rice 19.1

Wheat 14.5

Corn 38

Pulses 82.6

Food Oil 85.5

Vegetable 95

Food Security Plan

Gm Cost($)

Sugar 250 $ 0.15

Rice 290 $ 0.27

Pulses 300 $ 0.27

Oil 100ml $ 0.71

Potato 1030 $ 3.42

Inexpensive Sources for 1000 Calories

aahaariim

Technology

food prices

food production

days food security

good food disease

urban slums

ranchi citizens

slum slum dwellers

ranchi jharkhand