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Executive Summary

Safe drinking water market for rural India is an upcoming market which is supposed to have high potential. Intervention in this sector started with government schemes, NGOs programmes and now public-private partnership mode has been attracted an illumination as agenda or movement.

In spite of lower requirement for safe drinking water in rural areas currently, the market is expected to grow very rapidly. Regions like Rajasthan, Gujarat, and Andhra Pradesh where water quality is relatively poor for drinking purposes, especially in rural areas are expected to be major thrust for investment. In Rajasthan, Andhra Pradesh it has been observed that the ground water and the local water bodies have high amounts of fluoride content in it. Electricity supply in rural areas for expected hours has been sine-qua-non to establish a water treatment plant in those areas unless the intervention of solar or biomass technology is prominent in this area. Although, electricity supply at concessional rate and provision of land and building spaces sometimes by Gram Panchayat augment for the business. The sustainability of business in this market depends upon fulfilling responsibilities by all partners involved in the model whereas viability of the business mostly harps on capacity utilization of the plant.

Sweet India organization a for profit organization with a difference, promoted by few young aspirants of IRMA¹, can venture into increasing rural market through its enterprise model in which it will first float Water Venture Sweet India (WVSI), which in fact, will invest in the service as an equity partner with other enterprises. Sweet India is our parent company which holds the subsidiary, WVSI, will focus on only household (HH) drinking water projects in rural India. Two different models have been proposed in this report. First model represents establishing water treatment plant and selling safe drinking water to villagers, ensuing second model which adds water pouch packing for selling to nearest town areas along with water selling to the villagers would be preferable. This will add on to capacity utilization of the plant giving quick and better returns to the business. Although in the recommended model, capacity utilization of the plant is calculated based on ten hours electricity supply but the flexibility lies on the point that plant can run even for twenty four hours a day depending upon requisite demand and electricity supply giving robustness to model in this service.

The proposed structure in this partnership model provides an opportunity to earn benefits in some way or other to each and every partner. First of all, the Sweet India is floating Water Venture Sweet India (WVSI) for water sector to add another portfolio in its wing and looking to enter rural water market which is supposed to have great potential and likely to give good economic and social return on investment. This new initiative may help understanding the fundamentals of rural market for SI which is suppose to enter in different sectors like health, education, etc. by using the water structure as a common community centre.

1. Participants get inspired after reading some reports, especially one prepared by Mr. Madhukar R. who did his summer internship at IFMR Trust as part of course work fulfillment.

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* Contributed by: -
Amit Goel has done B. Tech. in Computer Science Engineering from Technological Institute of Textile & Sciences (TIT&S) Haryana. Worked as Software Engineer – Technology at HCL Technologies Ltd, New Delhi. Presently he is doing Post Graduate Diploma in Rural Management from the Institute of Rural Management Anand (IRMA), Gujarat.
Mohit Goel has completed his Bachelor of Engineering (Computer Science) from Netaji Subhas Institute of Technology, Delhi University & is currently working as QA Lead at Mtree Software Limited.