Access to Energy for the Base of the - Ashoka

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� Cooking on firewood drawbacks:
� Deforestation
� Time consuming (wood collection, low efficiency)
� 400k deaths p.a. in India (toxic smoke)
� BP stoves' end-users benefits:
� Combustion efficiency from 40% to 80%
� Cooking and fuel gathering time from 3h to 40'
per day
� Carbon monoxide emissions down 98%
� BOP1000 targeted (India, 2008 prices):
� Stove market price: $14 (RS675)
� Pellets for 1 week: $0.4 (RS20)
� Needs addressed: access to safe and affordable
cooking for almost all traditional dishes
� Sustainability: 4-5 years life expectancy
� Impact:
� Improved cooking for 250k families
� Entrepreneurs in 3000 villages in Karnataka, Tamil
Nadu, Maharashtra and Uttar Pradesh
Project economic viability Project scalability
� Profitability expected with "razor and blades"
business model:
� Stove manufacturing cost is still approx. $4 (RS200)
higher than retail price
� BP benefits expected from pellets selling (estimated
10% gross margin on pellets sold at $0.1/kg)
� USD10m investment
� Partners' financials:
� IISc: revenues from patent selling
� Jyothis: average income of $10/month
� BP pros to reach viability:
� Experience in scaling up projects
� Funding as a business angel
� 0% subsidized
A rural housewife cooking on a BP Oorja
Agricultural-residuals pellets produced by BP
� BP plans to sell its cook-stove business (new
Group alternative energy strategy)
Project ability to solve the problem
Sources: Hystra analysis, Management interviews, BP Magazine – Issue 4 – 2007; 2008 data
★★★
★★✩ ★★✩
� Favorable market environment: huge unregulated
market of customers cooking on biomass (700m
potential clients in India)
� Competition: Low cost traditional stoves, government
subsidized stoves, Envirofit, Phillips, Bosch-Siemens
� Business model scalability limit: Oorja electric
micro-fan battery requires intermittent power access
(not available in some remote areas)
� Multiple available partners for distribution: 13m
self-help groups accessible through NGOs
� Reliance on NGOs: requires building confidence and
working with distributors in an innovative way for
most MNCs