SABRAS Combining Cause and Commerce

SABRASCombining Cause and Commerce

Purshottam SonagraManager(Operations)

Sabras Processing & Marketing Pvt. Limited“ISHAVASYAM”

Opp. Lajpatnagar, Eeshita Towers Road, Navrangpura, Navjeevan, Ahmedabad-380 014

SABRAS - Inception, ideology and initiator

SABRAS is India's first poor owned, poor controlled, professionally managed (not poorly managed) for-profit company that aggregates the small marginalized Agariyas(vernacular for salt pan workers)

SABRAS is a successful example of helping small salt producers rise in the value chain through a corporate entity - ensuring creation and distribution of wealth

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“During cremation, feet of the Agariyas do not burn along with rest of the body as they contain lots of salt, collected due to constant touch with saline water.”

“The cost of the bag carrying salt is more than the price of the salt paid to salt producer”.

Two shockers which moved us to take up the cause

SABRAS – Organization and impact

Our Partners & Affiliations

SABRAS at present

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For Salt ProducersSabras has successfully installed and operationalized 12 solar pumps replacing diesel pumps (savings of 60%)

Increased procurement price from Rs 185/MT to Rs 230/MT from Agariyas – 56%

For SABRASIncreased volume of annual sales from 7,500 MT to 15,000 MTsProcurement increased from 28 to 40 producers Sales from 4 buyers to 13 buyers

Primary Producers AHRS

Exclusive relationship with Agariya Hit Rakshak Sangh, Union of Agariyas with

4,500 members

SABRAS has an exclusive partnership

with this union

Technical CSMCRIStrategic development advice provided by Central Salt & Marine Chemicals Research

Institute, Government of India InstituteTechnical consultancy

for salt and by-products

Government GLPC Gujarat Livelihood Promotion Company, Government of Gujarat

Investment MoU signed in 2011 to promote

livelihood

Pilot Project Partner NABARD National Bank for Agriculture and Rural

Development

Loan for pilot solar pump under Rural Innovation Fund

India’s production

estimated to be double by 2020

to 40 million tones

India is third largest

producer of salt globally

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Overview of the Salt Industry

Current India Production

20 million tones per yearGujarat Produces 70% of India’s Salt

Production14 million tones per year Salt is produced in

Gujarat*

Gujarat has two types of Salt

Marine(78%)

* 2005 Figures

3 million tones

Inland(22%)

11 million tones

Salt Production in Gujarat

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Marine Salt (78%)

Geographical Area

Number of people employed

• Shoreline of Gujarat

• Greater Rann of Kutch• Little Rann of

Kutch

• Little Rann of Kutch

• 70,000 people *Also includes laborers

Little Rann of Kutch is the focus area for SABRAShoping to impact approximately 30,000 individuals involved in the process of salt production

Little Rann of Kutch is land mass spread over 5180 Sq Kms having dual characteristics of saline desert and wetland

Source

Sea Brine

Inland Salt (22%)

• 30,000 people *Also includes laborers

Sub Soil Brine

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Our Workspace – The Little Rann of Kutch

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Our Workspace – The Little Rann of Kutch

• Estimated production per year : 40,00,000 MTs (40 lacs or 4 million MTs)

• SABRAS wants to capture 10% market share in next 5 years• Each Agariya produces approximately 2000 tonnes per year• Over the next five years SABRAS aims to reach out to 200 Agariyas• Estimated Agariya families in LRK: 10, 000• LRK has six major salt producing zones with pre-dominance of two

types of saltZone Name Typicality Sea Brine or Inland

Dhangadhra Good for Poda InlandSantalpur Good for Poda InlandKharaghoda Good for Poda InlandAdesar Good for Karkatch Inland

Maliya Goodfor Karkatch Both

Halvad Good for Karkatch Inland

• Currently SABRAS’s operations are most active in Dhangadhra and Halvad regions

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Salt Business and the Players in LRK

Agariya

A Chemical Company e.g. DCW Ltd – Industrial

Consumption

Wagon Quota Holder

Big Trader + Holds a Captive

Processing Unit

Processor, One who makes and packs refined salt

Wagon Quota Holder

Bulk Buyers in Northern

India, Nepal, Bhutan

A Chemical Company

Some other Industrial unit like a Tannery

Exports

Big Trader/SABRA

S

Wagon Quota Holder

A Chemical Company

Some other Industrial unit like a Tannery

Salt Processor

Refined SaltExports

Retail shelves if own label

Dealer/Distributor of an established brand - Job-work

Industrial Uses in India

SABRAS – Operates in Salt Business Ecosystem

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Sabras wants to install and operationalize 200 solar pumps replacing diesel pumps over next 5 years

Salt Produce

rTrader Transporte

rWholesaler

Processor

Retailer

Industrial

Use Consumer

Rs 145/MT

Rs 5200/MT

Salt Value Chain

Salt producer gets only about 1% to

8% of Rs 4,600/MT

Sabras’ intervention and business model

Fair flow of margins results in better incomes for salt producers

Salt Produce

r

Sabras

TraderTransporte

r

Wholesaler

Processor

Sabras

SabrasRetailer

Industrial

Use Consumer

Rs 200/MT Rs 5200/MT

Solar Pump

Belongs to salt producers once pump value paid back

Salt

Salt

Credit

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1 family = 4 members4 members work for 180 days

So ,180 days ×4 members=720 working days

1 pan produces 700 tones app.3× 700=2000 tones salt app.

3 pans require 2 diesel engines for 200 daysCost of diesel per engine= 8-10 liters/day

Per season an Agariya produces 2000 tones of salt from 3 salt pans

Statistics of salt production per season

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No Activity Diesel pump Solar pump

1 Labor for making of the Pans ( 5×3×200 )

3000/- 3000/-

2 Maintenance of diesel engine/ Solar pumps

10,000/- 10,000 /-

3 Cost of diesel (200×8×45 )

72,000/- Nil

4 Labor for taking out the finished product from

the salt pans ( 10 × 3× 200 )

6000/- 6000/-

5 Total expense 91000/- 19000/-

Income1000 ton ×145=1,45000

Expense for 1000 ton Salt production

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Financials

Income Expense Savings1,45000/-

91,000/- 54,000

Diesel Pump

To ensure savings of 54,000/- 2 members of the family works

for 180 daysBringing their savings to 54,000/360 = 150Rs/ day

Solar Pump

Income Expense Savings1,45000/-

19,000/- 1,26000/-

To ensure savings of 1,26000/- 2 members of the family works

for 180 daysBringing their savings to

1,26000/360 = 350Rs/ day

Models AvailableNo Capacity of Pump TYPE Depth Litre /Day1 900 W-PV Monobloc 10 Ft 1,00,000 Lt2 1400W-PV Submersible 30 Ft 1,25,000 Lt3 1800 W-PV Submersible 50 Ft 1,30,000 Lt4 3000 W-PV Submersible 70 Ft 1,30,000 Lt5 5000 W-PV Submersible 100 Ft 1,75,000 Lt

Capacity Of PumpsNo Pump Capacity Depth Litre /Day1 1400 W 10 Ft 2,00,000 Lt

30 Ft 1,25,000 Lt50 Ft 1,00,000 Lt

2 1800 W 10 Ft 2,50,000 Lt30 Ft 1,75,000 Lt50 Ft 1,30.000 Lt

• Solar panel : Waaree Engineers Pvt ltd.• DC Pump with motor : Lorenz, Germany.• Panel Structure : Bright Solar Pvt ltd• HDPE PIPE : Reliance Industries ltd• Cable : ISI standard brand

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We use

Our special Features

• India’s first low cost self run pump on Solar energy

• Can work on any water level• Extensive R& D ensures extra features and latest

technology• Low cost makes it easier for any one to install• Free from night time farming• Get water without electric connection• Government approved

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Financial helpCapital subsidy of

30 % of the total amount

Facts

Warranty/lifeWarranty of 5 years

for all the systemLife of the system is

25 yearsApplicationsFarming through bore

wellFarming through river

& canalDrip irrigation &

drinking water

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Special features of Monobloc Pump :

No Model BS-9-SF Bs-18-SF BS-30-SF

1 Capacity of the Solar

panels

900 W 1800 W 3000 W

2 Capacity of the pumps

1 h.p. 2 h.p. 3 h.p.

3 Foot Depth 10Foot 21 Foot 21 Foot4 Discharge

pipe1 inch 2 inch 3 inch

5 Water out flow from 18 feet depth/

hour

12,000 24,000 44,000

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Special Features of Submersible pump :

No Model BSPL-9- SB

BSPL-18 SB BSPL-30 -SB BSPL-50-SB

1 Capacity of the Solar panels

900 W 1800 W 3000 W 5000 W

2 Maximum depth

capacity

60 Feet 100 Feet 200 Feet 300 Feet

3 Discharge pipe

1.25 inch 1.25/2 inch 2/3 inch 2/3 inch

4 Water out flow from

30 feet depth/ hour

50,000 1,25 ,000 3,00,000 5,00,000

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Thank you for your timePurshottam Sonagra

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Trust in SABRAS for the second salt march