Mr. Monir 12 years old

measlyincompetentΠολεοδομικά Έργα

29 Νοε 2013 (πριν από 3 χρόνια και 8 μήνες)

78 εμφανίσεις

Mr. Monir

12 years old


Lives in a remote
village named
Shokhipur
,
Rajshahi




His family
didn’t have enough


money
to buy him a wheelchair


Lowest quality wheelchair costs

a
t least

$ 120










160
Million
total
population

10%

of
population
disabled

23%

physical
movement
disability

The Situation

3.7

million

The Problem

Affordability

Awareness

Availability

Rural

Monthly Income

$ 60
*

> Foreign wheelchairs

$ 400

> Local wheelchairs

$ 120


250

Affordability


*
Source: Bangladesh Bank, July 2012

Concentrated
in
Big cities

Places only
where
medical
colleges

are situated

No direct
access to
villages

Availability

Lack of Trusted
suppliers


Made
-
for
-
village
devices very
rare
.

Information
Asymmetry


30%

of the
population
do not know

that a change is
possible

Awareness

The Solution

LifeChair

Affordable

Trusted

Available

Unique Features

Reclination



90
-
130 degrees



Read
a book

Taking
a
Nap


Unique Features

Flip table



Desk
works


Writing


Dining

Special Features


It can take more than
10,000
psi
pressure

Strength


Wheels can take
upto

250 kg

Weight Capacity


Can easily be used in
rural roads

Movement

Tested by Bangladesh University of
Engineering and Technology (BUET)

Pilot test

90%

SATISFIED

No change required


10%

Minor changes required


Market Potential

Total

$
128,395,200

Primary market

$ 107 million

Secondary market

$ 16 million

Tertiary market

$ 4 million

How to tackle competitors

FOREIGN

High
-
end
products

Out of reach

for our

target market

LOCAL

Steel
wheelchairs

> Not available
at remote places

> Above the
purchase
capability

$400 >
$40

$120 >
$40

Bangladesh
Patents &
Designs Act 1911

Patent No: 32/13

Patent

Distributors:
NGOs

Suppliers

Exclusive
Contracts

Barriers to Entry

Distribution


Specialized

in working with
physically disabled


“Caregivers to Residences”
operation


25%
market coverage

Non
-
Government
Organization (NGOs)

Rotary Club


Dhaka Urbana

Rotary International District 3280

Distribution

Employment


Increase in
income
through jobs

Literacy


Younger
users

attend
regular
schooling

Community Life


Reducing
social stigma

by inclusion
in society

Quality of Life & SROI

Environment


Environment
friendly
materials


Reduction
in carbon
emission

Healthiness


Reduces
injury
and diseases

Social Return on Investment (SROI)

Benefits to Costs ratio

203:1

Success Stories

Case: Mr.
Selim


Previously


A Beggar


After
LifeChair

A Handicraftsman

Success Stories

Case: Mr.
Monir


Previously


School Drop out


After
LifeChair

Regular student


Media personality and
entrepreneur

Shykh Seraj


Academician and
entrepreneur

Mohammad A
Momen


Orthopedics specialist

Dr. AKM Golam
Rouf

Board of Advisors

NPV

US$ 165,168

IRR

36%

Payback period

2.25 years

Capital Expenditure

US$ 250,292

Financial Summary

Social Business Plan
Competition, 2012

Organized by:
Yunus Centre

Milestones

Nobel
laureate

Dr. Muhammad
Yunus

Awarding the prize


Is this product unique?


Is it user friendly?


Does it have commercial viability?


Does it protect the environment?


Does it bring positive change in society?




Checklist

Every
person

should
have
an
opportunity





of
leading a
fulfilling life


Moving the wheels of life

Any Questions?

Thank you!

Appendix

1.
Market potential

2.
Structural strength

3.
Management

4.
Market factors

5.
Distributors

6.
Marketing

7.
SROI

8.
Environmental impact

9.
Strategic location

10.
Cost breakdown

11.
Financials

12.
Raw Materials requirements

13.
Species Comparison




CEO

Naseef Us
Sakib

CFO

Makame

Mahmud

CMO

Sajid
Rahman


COO

Md. Souvik
Aswad

Management

Navigation

All about

bamboo

Thyrsostachys

Siamensis

(colloquial term:
Rangoon bans)

Strength

Aesthetics

Natural Insulator

Navigation

Market potential

Total population of Bangladesh

160,000,000

Percentage of cripple population

2.30%

Total market

3680000

Percentage of population residing in rural areas

72.9%

Rural population


116,640,000

Total market

2,682,720

Potential customers

100%

Market size


$ 107,308,800

Primary market (Those who reside in rural areas, have less than $120 monthly income)



[
1]

http://data.worl dbank.org/country/bangl adesh#cp_wdi
,
World Bank Indicators
-
bangladesh
-
Density & urbanization
. Last vi si ted 14
th

January, 2013

Percentage of population with this income segment

15.1%

Total population

24,160,000

Total market

555,680

Potential customers

75%

416,760

Market size


$ 16,670,400

Secondary market ( Those who reside in Urban area, have less than $160 monthly income )

Percentage of population with this income segment

12.0%

Total population

19,200,000

Total market


441,600

Potential customers

25%

110,400

Market size


$ 4,416,000

Total Market Potential


$ 128,395,200

Tertiary market ( Those who reside in Urban area, have more than $160 monthly income )

Navigation

Structural strength


A person of 200 kg generates about 50
-
60 psi pressure on a 17"36"
platform


But our bamboo seat
offers more than 10000
psi
strength
.

0
2000
4000
6000
8000
10000
12000
14000
16000
0
0.002
0.004
0.006
0.008
0.01
Stress (psi)

Strain (in/in)

Stress
-
Strain curve of
Rangoon Bans

Navigation

The joints are made fixed joint with the help of Wicker stripes.
The strength of the joint is a little bit tough to determine since it
varies with the type of structure. But from the structural point of
view considering the weight, normal operating momentum, and
pattern of use, the joints were tested manually to ensure that
the joints will be able to withstand the possible impact force due
to crash or collision with other objects
.


Modulus of Bending (rupture):

11,020
lbf
/in2 (76.0
MPa
) to
24,450
lbf
/in2 (168.6
MPa
)

Crushing Strength (compression):
8,990
lbf
/in2 (62.0
MPa
) to
13,490
lbf
/in2 (93.0
MPa
)

Navigation

Market Forecast

Navigation


Longer

life
expectancy

68.9

years

62%

accident
increase

in 10 years

Literacy rate

63%
(2011)

Increasing
population

1.34%

Source:

Bangladesh Bureau of Statistics, 2012

Distribution

Why would they become partners?


They are specialized in working for Physical Disability


10% of the revenue from sales will be their share


Goal congruence, better exposure and wider coverage
.

Non
-
Government
Organization (NGOs)

Navigation

Marketing

NGO’s Existing
beneficiary
network

and mass
marketing

BTL
Marketing
through
information
sessions

LifeChair
creates
awareness

Navigation

SROI Assumptions

Items

US$

income per employed person per year

732

income per disabled worker employed in factory per year

1103

medical cost saved per LifeChair per year

12

income after education completion per children per year

1476

travel cost per purchase previously

9

Navigation

Year (all figures in US$)

0

1

2

3

4

5

Production per year

35000

43750

56875

71094

85313

Social Benefits

Income when disabled people are employed

25620000

32025000

41632500

52040808

62449116

Income from disabled workers employed in
factory

13230

13230

13230

13230

13230

Medical cost saved due to reduced injury

420000

525000

682500

853128

1023756

Income from educated children availing
LifeChair

51240000

64050000

83265000

10408161
6

12489823
2

Travel cost saved due to accessibility

315000

393750

511875

639846

767817

Total Social Benefits

77608230

97006980

126105105

15762862
8

18915215
1

Discounted Total Social Benefits

69293063

77333371

89759122.8

10017584
3

10733001
0

Costs

Initial Investment

250292

Operating Costs

352309

451254

559912

669230

768257

Total Costs

250292

352309

451254

559912

669230

768257

Discounted Total Costs

314561

359737

398535

425308

435929

Social Benefits Flow

-
250292

77255921

96555726

125545193

15695939
8

18838389
4

Discounted Gross Social Benefits

443891409

Discounted Gross Total Costs

2184362

Benefits to Cost Ratio

203

Navigation

Social Impact Value Chain

Inputs



Product
Innovativeness


NGO Affiliation


Activities


Production


Promotion


Distribution

Outputs


Income of
disabled
production
line workers


Increased
earning
potential


Increased
earning for
bamboo
farmers


Outcomes


Increased
employment
opportunity


Improvement
in literacy
rate among
disabled
children


Increased
economic
participation


Increase in
eco
-
friendly
bamboo
usage

Goal

A
lignment


Reduction
of poverty

Navigation

Social Return on Investment (SROI)

Navigation

Benefits to
costs
ratio

203:1

11,448 ton
CO2
reduced in
5 years

CO2 absorbed
per chair

0.0012 ton

CO2 emission
decreased per
chair

0.038 ton

0.0392 ton

CO2 reduction
per chair

Environmental

Impact

Navigation

Strategic Location

Navigation

Assumptions


1 USD= 80 BDT


Discount
rate
is considered as 15%


Inflation rate
is 8%


Distribution

partners’ will get 10% of selling price.


25% of first month’s required raw materials and labor included in
starting capital.


Straight
line depreciation method has been used. 8 years life cycle
is considered.


Utility

rate is 1.5% of raw materials.


Tax rate
is 35%. Bank
interest rate
is 14%.


Navigation

Cost breakdown

Item (Bamboo)

No. of Pieces

Length per piece
(inches)

Total length
(inches)

Backrest

3.5

36

126

Handles

2

37

74

Seat

5

24

120

Legs

4

26

104

Leg support

4

13

52

Handle support

2

13

26

Cage support







Backrest

4

17

68

Seat

3

17

51

Rear body

3

18

51

TOTAL





675

Item (Cane)

No. of Pieces

Length per piece (inches)

Total length
(inches)

Reclination support

3

13

39

TOTAL





39

Item (Wicker)

Total weight (gm)

Reclination support

39

TOTAL

39

Item (Partex board)

Total Area (square inches)

Table (thickness: 0.75 inch)

126

Navigation

Capital Expenditure

Capital Expenditure

Land

102,000

Building & Civil Construction

35,000

Equipment and Erection

10,000

Generator

15,000

Truck

31,250

Advances for Raw Materials

25,000

Labor

2,917

Utility Connection and Advance Payment

1,625

Legal and Consulting

2,500

Marketing Expense

18,750

Misc.

6,250

TOTAL (in USD)

250,292

Navigation

Production possibilities

Production Schedule

Year

1

2

3

4

5

Units of LifeChair

35000

43750

56875

71094

85313

Navigation

Capital Structure

Capital Structure



Equity

55%



Debt

45%



Total Equity

137660



Total Debt

112631




14% interest rate

0

1

2

3

4

5



Year 0

Year 1
Year 2

Year 3

Year 4

Year 5

Payment


32,808

32,808

32,808

32,808

32,808

Principal repaid

17039

19425

22144

25244

28779

Interest paid

15768

13383

10663

7563

4029

Debt outstanding

112,631.3

95,592

76,167

54,023

28,779

0

Navigation

Income Statement

Costs

Year

1

2

3

4

5

Raw material

1028125

1417500

1990170

2686730

3482001

Labor

119947.9

165375

232187

313452

322481

Utility

15093.75

21263

29853

40301

52230

Land rent

1500

1500

1500

1500

1500

Salary

6450

6966

7523

8125

8775

Marketing

6250

5000

5400

5832

6299

Misc.

3750

4050

4374

4724

5102

Total

1181117

1621654

2271006

3060663

3878388

Revenue

Units Sold

35000

43750

56875

71094

85313

Sale of LifeChair

1268750

1712813

2404789

3246465

4207418

Gross Profit

87633

91159

133782

185802

329030

Depreciation

11406

11406

11406

11406

11406

Interest

15546

13194

10513

7456

3972

EBT

60682

66559

111863

166939

313652

Tax @ 35%

21239

23296

39152

58429

109778

Net Income

39443

43263

72711

108510

203874

Navigation

Capital budgeting

Year (all figures in US$)

0

1

2

3

4

5

CF

-
246755

103129

66930

102239

129738

261951

PV Factor

1.15

1.32

1.52

1.75

2.01

PV

89677

50609

67224

74178

130236

NPV

165168

IRR

36.03%

Payback period

2.25

Yrs

Discounted payback
period

3.53

Yrs

Navigation

Cash flow statement

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Operating Activities

Net Income

39443

43263

72711

108510

203874

Increase in Accounts Receivable

-
28,000

-
30,000

-
46,000

-
36,500

-
24,500

Increase in Accounts Payable

120,825

70,454

96,547

97,185

108,627

Depreciation

11406

11406

11406

11406

11406

Increase in Raw Material
Inventory

-
25,000

-
15,000

-
21,913

-
43,407

-
33,484

Cash Flow from Operating
Activities

118674

80124

112751

137195

265923

Investing Activities

Capital Expenditure

-
246755

Net Cash flow from Investing

-
246755

Financing Activities

Debt

111040

Equity

135715

Payment of Long Term Debt

-
15546

-
13194

-
10513

-
7456

-
3972

Cash Flow Provided by Financing
Activities

246755

-
15546

-
13194

-
10513

-
7456

-
3972

Net Cash Change

0

103129

66930

102239

129738

261951

Opening Balance

0

103129

170058

272297

402035

Closing Balance

0

103129

170058

272297

402035

663986

Navigation

Balance sheet

Total

Current

Assets

178,887

241,597

327,719

411,422

503,084

Total

Non
-
Current

Assets

184,344

172,938

161,531

150,125

138,719

Total

Assets

363,231

414,534

489,250

561,547

641,802

Total

current

Liabilities

133,274

203,728

300,275

397,460

506,087

Long
-
term

Liabilities

94,241

75,091

53,260

28,372

0

Total

Equity

135,715

135,715

135,715

135,715

135,715

Total

Liabilities

&

Equities

363,231

414,534

489,250

561,547

641,802

Navigation

Raw Materials requirements

Item

Cost per unit
($/ft)

Total units
(inches & gm)

Total Units
(feet & kg)

Total Cost
(USD)

Bamboo

0.23

675

56.25

13.13

Cane

0.15

39

3.25

0.50

Wicker

0.002

700

0.7

1.5

Partex Board

1.14

126

0.875

1.00

Wheel and axle







14

Total







30

Navigation

Species Comparison


(Figures in
kN
/Cm2)

Thyrsostachys

Siamensis

Bambusa

Tulda

Elastic Modulus

1900

1700

Tensile

Strength

16.5

16.7

Compressive
Strength

4.3

3.7

Bending Strength

7.6

7

Navigation