Team Purple
2.009 Final Presentation
December 12, 2005
Overview
1 billion subsistence farmers
Inefficient irrigation
Starvation
Poverty
The IrriGator Pump
Human-powered water pump
Low cost
Ergonomic
Business model
Economically viable
Self-sustaining non-profit
IrriGator Demonstration
The IrriGator Pump
Capabilities
Max pump draw
7 meters
Max pumping head
10 meters
Max flow rate
1.25 liters/second
Customer Gains
3 hour daily use, 2 acres
irrigated
5x–10x increase watered land*
*kickstart.org, ideorg.org
10m
IrriGator
-7m
Problem
Poor irrigation methods*
poverty
malnutrition
¼ acre
“Simple, low cost” pump**
World poorest
Provide food
Generate income
Current methods
Well and bucket
Hand + rope pumps
Treadle Pumps
*United Nations Water Committee
**International Water Management Institute
Cost vs. Area Watered
$200
Treadle Pumps
$160
Cost
$120
$80
Hand Pumps
$40
Bucket
.5
1
1.5
2
Acres Watered
2.5
Product Goal
- High flow
- Low cost, ergonomic
- Pedal powered pump
Cost vs. Area Watered
$200
Treadle Pumps
$160
Cost
$120
The IrriGator
$80
Hand Pumps
$40
Bucket
.5
1
1.5
2
Acres Watered
2.5
Treadle Pumps
2 million used
Commercially available
IDE: 300,000 in India
Money Maker: 45,000 in
Kenya
Specifications:
1.5 – 2.5 acres watered
Treadle Pump Analysis
Treadle Pumps
Stair-stepper motion
Piston pumps
Limited adjustment
Difficult to transport
Treadle Cost: $200
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IrriGator Analysis
IrriGator Pumps
Recumbent bicycle motion
Diaphragm pumps
Seat adjustment
Portable frame with wheels
IrriGator Cost: $125
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Portable Frame
Robust, lightweight
frame
Simple design
5 structural members
Wheels and handles
Corrosion resistant
Recumbent Seat
Ergonomic seat
Easily adjustable for
height
Pedals
Pedal - power
Direct drive
Efficient
Serviceable
Pump Unit
• Diaphragm
• Self priming
• Injection molded
• Cheap parts
Quick-Connect Tubing
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Field Serviceable
Replacement Parts
Diaphragm - $3
Bearings - $0.50
Valves - $5.00
Case: An IrriGator Customer
Average Income: $300 - $2000 per year
IrriGator Pump: $125
Pump usage
3 hours per day
8x increase in watered land
Revenue
$100-$900 extra revenue per year*
Salary 1.5x- 2.5x market wages*
Profit
Customer recoups investment 6 – 18 months
*International Water Management Institute, Kickstart Organization
Global Market
Eastern India:
10,000,000*
China:
7,000,000*
Sales Forecast
#
15,000
11,000
7,000
3,000
1,000
1
2
3
Year
* International Water Management Institute
4
5
Revenue Growth
300 000
$250,000 Loan
200 000
Manufacture Pumps
Distribution Centers
100 000
Sales of The IrriGator
-
(100 000)
Year 1
- Water Partners, USAID, IMF
- Manufacture in India, China
Year 2
Year 3
- Breakeven in Year 4
- IRR: 8.3%
Year 4
Real problem, Real solution
Customer Need
1 billion people lack of irrigation
Starvation
Poverty
IrriGator
Replaces current methods
Inexpensive
Ergonomic
Generates revenue
Testimonial
Tinka John
A rural farmer from Uganda
Community Outreach Coordinator
“There is no running water in my village so I've come here to check on what
you are doing, to see where I could get some ideas or use your machine to
pump water to my village. ”
“This is easy… The cost is not bad… it's not as rigid as [the MoneyMaker
prototype], you are relaxed and seated. Yours is perfect."
Any Questions?
Acknowledgements
Samir Nayfeh
Doug Vincent
Dave Wallace
Joe Cronin
Bob Gertsen
Steve Haberek
Bob Nuttal
Dick Fenner
Product ROI
The IrriGator - $125
Income/year, $100-$900*
Discount rate – 15%
7 Year product life
User breakeven
High estimate – 1.5 years
Low estimate – 3 months
Low ROI: 210%
$
High ROI: 2700%
Year
*kickstart.org, International Water Management Institute
Revenue Model
Sales Revenue and Profit
350,000
300,000
250,000
200,000
150,000
$
Discounted Profit/Loss
Sales Revenue
100,000
50,000
(50,000)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Year 1
Year 2
Year 3
(100,000)
Time Period
Year 4
Financing
– WaterPartners International loans money in
countries including India.
– Loans are US$25,000 - US$250,000
– must be paid back in 3 years; 5% interest.
Product Cost
Low Estimate = $40*
High Estimate = $120*
*Professors Nayfeh, Wallace, Meeker,
and Doug Vincent
Target Market
Eastern India
Uttar Pradesh, Bihar
10,000,000 potential customers
Non- Profit Structure
Water Partners International
[ $250 000 loan ]
Mfg & Assm Plant
Mfg & Assm Plant
China
India
Distribution Centers - China
Distribution Centers - India
Flow Characteristics