SABRAS Combining Cause and Commerce Purshottam Sonagra Manager(Operations) Sabras Processing & Marketing Pvt. Limited “ISHAVASYAM” Opp. Lajpatnagar, Eeshita Towers Road, Navrangpura, Navjeevan, Ahmedabad-380 014 SABRAS - Inception, ideology and initiator Two shockers which moved us to take up the cause 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”. 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 2 SABRAS – Organization and impact SABRAS at present For Salt Producers Sabras 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 SABRAS Increased volume of annual sales from 7,500 MT to 15,000 MTs Procurement increased from 28 to 40 producers Sales from 4 buyers to 13 buyers Our Partners & Affiliations 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 CSMCRI Strategic development advice provided by Central Salt & Marine Chemicals Research Institute, Government of India Institute Technical consultancy for salt and by-products Government GLPC Gujarat Livelihood Promotion Company, Government of Gujarat Investment MoU signed in 2011 to promote livelihood National Bank for Agriculture and Rural Development Loan for pilot solar pump under Rural Innovation Fund Pilot Project Partner NABARD 3 Overview of the Salt Industry Current India Production 20 million tones per year India is third largest producer of salt globally Gujarat Produces 70% of India’s Salt Production 14 million tones per year Salt is produced in Gujarat* Gujarat has two types of Salt Marine (78%) 11 million tones Inland (22%) 3 million tones India’s production estimated to be double by 2020 to 40 million tones * 2005 Figures 4 Salt Production in Gujarat Marine Salt (78%) Source Geographical Area Number of people employed Inland Salt (22%) Sea Brine Sub Soil Brine •Shoreline of Gujarat •Greater Rann of Kutch •Little Rann of Kutch •Little Rann of Kutch •70,000 people *Also includes laborers •30,000 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 5 Our Workspace – The Little Rann of Kutch 6 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 salt Zone Name Typicality Sea Brine or Inland Dhangadhra Good for Poda Inland Santalpur Good for Poda Inland Kharaghoda Good for Poda Inland Adesar Good for Karkatch Inland Maliya Goodfor Karkatch Halvad Good for Karkatch Inland Both •Currently SABRAS’s operations are most active in Dhangadhra and Halvad regions 7 Salt Business and the Players in LRK Big Trader + Holds a Captive Processing Unit Wagon Quota Holder A Chemical Company Some other Industrial unit like a Tannery Exports Big Trader/SABRAS Wagon Quota Holder Salt Processor Refined Salt A Chemical Company Some other Industrial unit like a Tannery Exports Agariya Wagon Quota Holder Bulk Buyers in Northern India, Nepal, Bhutan Industrial Uses in India A Chemical Company e.g. DCW Ltd – Industrial Consumption Retail shelves if own label Processor, One who makes and packs refined salt Dealer/Distributor of an established brand - Job-work 8 SABRAS – Operates in Salt Business Ecosystem Salt Value Chain Salt producer gets only about 1% to 8% of Rs 4,600/MT Rs 145/MT Salt Producer Industrial Use Rs 5200/MT Processor Salt Trader Transporter Consumer Retailer Wholesaler Credit Sabras wants to install and operationalize 200 solar pumps replacing diesel pumps over next 5 years Sabras’ intervention and business model Solar Pump Belongs to salt producers once pump value paid back Sabras Salt Producer Rs 200/MT Sabras Salt Trader Industrial Use Consumer Processor Transporter Retailer Sabras Wholesaler Rs 5200/MT Fair flow of margins results in better incomes for salt producers 9 Statistics of salt production per season Per season an Agariya produces 2000 tones of salt from 3 salt pans 1 family = 4 members 4 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 days Cost of diesel per engine= 8-10 liters/day 10 Expense for 1000 ton Salt production No Activity Diesel pump 1 Labor for making of the Pans ( 5×3×200 ) Solar pump 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/- Income 1000 ton ×145=1,45000 11 Financials Solar Pump Diesel Pump Income Expense Savings Income Expense Savings 1,45000/- 91,000/- 54,000 1,45000/- 19,000/- 1,26000/- To ensure savings of 1,26000/2 members of the family works for 180 days Bringing their savings to 1,26000/360 = 350Rs/ day To ensure savings of 54,000/2 members of the family works for 180 days Bringing their savings to 54,000/360 = 150Rs/ day 12 Models Available No Capacity of Pump TYPE Depth Litre /Day 1 900 W-PV Monobloc 10 Ft 1,00,000 Lt 2 1400W-PV Submersible 30 Ft 1,25,000 Lt 3 1800 W-PV Submersible 50 Ft 1,30,000 Lt 4 3000 W-PV Submersible 70 Ft 1,30,000 Lt 5 5000 W-PV Submersible 100 Ft 1,75,000 Lt Capacity Of Pumps No Pump Capacity Depth Litre /Day 1 1400 W 10 Ft 2,00,000 Lt 30 Ft 1,25,000 Lt 50 Ft 1,00,000 Lt 10 Ft 2,50,000 Lt 30 Ft 1,75,000 Lt 50 Ft 1,30.000 Lt 2 1800 W We use •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 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 14 Facts Financial help Capital subsidy of 30 % of the total amount Warranty/life Warranty of 5 years for all the system Life of the system is 25 years Applications Farming through bore well Farming through river & canal Drip irrigation & drinking water 15 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 Foot 4 Discharge pipe 1 inch 2 inch 3 inch 5 Water out flow from 18 feet depth/ hour 12,000 24,000 44,000 16 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 17 18 19 20 21 22 Trust in SABRAS for the second salt march Thank you for your time Purshottam Sonagra 23