Nutorious

Shruti Bhagwat

Business design for other 90%

Business Calculations

Problem Statement

Detailed questionnaire

What is business?

Reflection and learning

Social Enterprise is hero

Bibliography

Know your client Story of an elephant poop Field Visit Golden Circle theory Value chain Business canvas model Market Visit

Contents

What’s cooking?

Brand in Making Packaging

poorer while the other layer is becoming richer and richer. And the next generation is no more interested in continuing their ancestral occupation. Social enterprises can play a crucial role in empowering farmers and artisans by reducing the chain of middle men or minimizing the role of middle men so that the producer gets the maximum profit out of their own production.

Business Design

For The Other

90%

Impact edge - Design for the other 90%, the name and tagline made an impact. Our project was introduced to us as a ‘social enterprise.’ Being a part of the Srishti design community the words ‘social enterprise’ was understood and acknowledged immediately.

Social enterprises are businesses that help tackle social problems by appropriate intervention in communities, people or the ecosystem. They generate revenue by selling goods and services in the open market and they reinvest their profits back into the business or the local community. And so when the social enterprise profits, the society profits.

This cluster offered so many interesting projects but one that interested me the most was the Cashew Unit in Pondicherry!

We have always been hearing that how farmers, artistans who are at the base of the supply chain are getting poorer and

In the social field what interests me the most is to use our knowledge and skills to solve some of the issues of the people who are in need. Design differentiates itself from other profession by its capacity to find solutions the current issue. Implementation of the solution to a problem becomes challenging in the social field but at the end of the execution there is satisfaction in the work done.

Realization of social responsibility or do some good deeds where you return something to the society was one of the inspiration to join this cluster.

The Impact Edge cluster demanded graphic design knowledge for branding, packaging and advertising- the stimulus to join this design school. To work alone on this project was a huge opportunity to learn. After my earlier experience I feel team learning is easier than digging down to the solution all by self, which makes learning permanent. Therefore to hone my graphic skills I wanted to take up this

cluster.

Design is usually affordable by businesses that cater to the affluent. Social businesses are constarined by budget, so a big challenege is to get disproportionate impact through design, but on a shoe string budget.

Today women and men work together in areas which were formerly the preserve of men!

Today more and more women are successful.

All this makes me feel awesome. This organization is a women driven organization.

They have formed this enterprise with the help of each other. They are struggling to get

Working with a women’s organization; organization formed and run by women boosted my interest to work with them.

stability in finance. On the other side they are also managing their households. I would love to work for these women to help them to hold their head high.

about effects of Tsunami in 2004 on the island and mentioned the effects on the Tamil Nadu.

This made me more sensitive about this project.

Last semester I worked with people from ANET, which gave me opportunity to study about the Andaman and Nicobar Island. I had studied

So far I have worked on many design projects.

For the first time any project gave me an opportunity to understand business and design together. This was another important reason for me to take up this project.

I have very limited knowledge about agricultural field. My project, the cashew processing unit in Pondicherry is agriculture based and currently supporting the community in a very inadequate way. This project added a new dimension that design and design thinking can play a crucial role in understanding various types of social, cultural, environmental and -efficiently so that the community is able to improve their economic conditions. Cashew is a cash crop and expensive food product in the market. Who wouldn’t want to know journey of this cashew from farm till the tummy.

Integration of design and agriculture was my interest that drew me in to this project. And of course Cashew nuts are one of my favorites so that made me little partial to choose this agricultural project.

I also saw an opportunity to witness the

whole process of social enterprise formation to running a successful trial.

I feel this project offering opportunity to learn business design was the most important purpose to take up this project cluster.

private and communal land. Earlier they were dependent on sea and fishing. The tsunami and mechanized fishing boats have lowered their yields, these women harvest and process cashews creating sustainable income for their family. This is been an assuring alternative for them.

Problem

Statement

An agricultural based SHGs unit process cashew near Pondicherry. They come from communities devastated by 2004 tsunami. The coast of Tamil Nadu between Pondicherry and Cuddalore has cashew trees growing on both

Value addition by flavoring, packaging, branding and marketing with fewer middle men would improve their economic status .In depth study and evaluation of value chain and markets. Develop market; create brand and

communication strategy and collateral.

Unique packaging and graphic design to convey the story of people behind the brand.

When we talk about sustainable livelihood which is applied most commonly at the household level: “A livelihood comprises the capabilities, assets (stores, resources, claims and access) and activities required for a means of living: a livelihood is sustainable which can cope with and recover from stress and shocks, maintain or enhance its capabilities and assets, and provide sustainable livelihood opportunities for the next generation; and which contributes net benefits to other livelihoods at the local and global levels and in the short and long term.”

Necessity for looking up market as an opportunity: In sustainable livelihood Programs ‘market’ can be a means of helping low-income people to better lives and livelihoods. These can be alternatives or supplements to the traditional approaches of domestic and foreign assistance programs, philanthropic foundations, and other non-governmental organizations. Although traditional aid has provided, and continues to provide, relief to millions, global poverty remains a massive social challenge.

I have no wish to denigrate traditional aid, but also believe that it is possible to create

market-based solutions. This will have significant advantages in addressing certain aspects of global poverty. Even in the recent history, thinking about what succeeds in actually helping poor people to better lives and livelihoods, as opposed to providing them immediate but often temporary relief from the symptoms of poverty, works better.

The promise of market : • They drive sustained improvements in people’s lives and livelihoods, because individuals are making their own choices and taking responsibility for their lives rather than becoming dependent on aid providers; and this outcome is attained on a more cost-efficient basis.

• It also promises to be self-sustaining, and the up-front funding is thus true “capital” rather than an annual outlay for benefit programs.

Role of business first focus: Business models offer the possibility of better outcomes for the poor. The business models or plans are grounded in the practical, empirically investigated realities of what works in low-end markets and what does not.

To make maximum profit from the market one needs business plan or business focus • Setting out an accurate plan or focused

business plan will help to determine whether the business idea is feasible. By making cash flow, sales and other financial forecasts and looking at what sort of target market the business will have, one can work out whether the idea will work as a business and how easily one will be able to monetise it.

• Because it sets out exactly what the strategies are and how one is planning to run the business, a well-written business plan containing relevant figures will help one to convince investors into business as a reliable proposition.

• A well-researched business plan which includes the right figures and realistic forecasts will also reassure potential investors that this business is a sensible investment opportunity.

• Even if one is not planning to raise money, a business plan will allow to map the future of business. By putting one’s thoughts down on paper, it will allow to come up with a comprehensive strategy on how one will deal with various scenarios.

• The business plan gives a place to list specific goals and objectives for one’s business, helping to set out clearly how one should plan to meet these goals and on what sort of timescale, and forcing you to commit to that course of action.

• Because one needs detailed financial and market forecasts in the business plan, it will help to manage cash flow by showing in detail exactly what one should expect the incomings and outgoings to be within given periods of time.

Design has an important role to play in value creation.

The role of designers has always been to translate and communicate the value of a business idea to consumers. They can help companies connect and establish a dialogue with consumers, thus enabling firms to innovate more efficiently. The challenge for most businesses today is about how to innovate while mitigating risk. For consumers, choices are made by balancing the need for evolution with the force of habit. Designers are trained to understand how people think and how to make things. For this reason, there are four basic areas in which design has an important role to play in value creation: • Understanding the Consumer Entrepreneurs and large companies alike invest heavily in understanding their consumers.

Consumers themselves often give detailed suggestions about how to improve various offerings. Still, most products that perform as promised are rejected in the marketplace. So designers must not only synthesize functionality and aesthetics, they must understand a

consumer’s thought process and emotions in order to motivate behavior change.

• Risk Mitigation How many times have companies pronounced that an innovation failed because it was “ahead of its time”?

How often does business risk aversion result in lackluster offerings that are ultimately taken off the market?

Design is a process of synthesizing insights into a tangible offering in a way that addresses the goals of the company and the desires of consumers.

• Many of the firms that can perform at this level were early in bringing design into their cultures. Boosting Marketing and Branding. It’s no accident that many of the world’s top brands are also design leaders.

Design is a fundamental part of creating an image and experience of luxury, exclusivity, and tribal belonging. And yet the consumers who purchase these items often select them because they see a little bit of themselves (or who they would like to be) on the shelf. That’s great design.

• Sustainability Design will also be a fundamental part of one of the next great challenges to touch every industry. How can the need to consume be balanced with the need to be good stewards of the planet? How can brands retain their image and deliver a superior experience while reducing parts,

waste, and carbon footprint. These are business challenges where design has an important role. If the solutions are not aspirational and adopted by large numbers, the potential benefit to the planet is limited. To say that design is an important part of business success does not mean that all corporate efforts to incorporate design represent money well spent.

But that’s true of all business functions.

The debate about the value of design is healthy and signals a need for more frequent and thoughtful dialogue. In our view, there is far more in common between design and business than may be readily apparent.

• Great designers, like visionary business leaders, create value by exploring without limitation through the psyche and psychology of consumers. They assemble teams of individuals who see the world through different eyes and explore what should be as opposed to what is. They show discipline in doing more with less. By combining forces, we can create new business opportunities and the pathways to manifest consumer needs, emotions, and aspirations. By so doing, we generate revenue and sustainable growth for business.

The etymology of “business” stems from an early form of the adjective “busy” and implies socially valuable and rewarding work.

A business, also known as an enterprise or a firm, is an organization involved in the trade of goods, services, or both to consumers.

Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company.

Business Design

What Is Business?

A problem solving act by creative methods possibly changes the solution of the problem.

Keeping customer as a center to understand its emotions and behaviour and deigning a product changes its worthiness and company makes more profit. Designing a product like that is the way of company telling “ we care for you”.

Combining design thinking and traditional corporate strategies to help clients create avenues for market growth. By shifting focus from linear practices to iterative design processes, one can shed light on new options and explore the various alternatives. Adapting methods include qualitative and quantitative research, business model prototyping, data visualization, organizational design.

Business Design is a human-centred approach to creative problem solving.

It applies design methods and mindsets to business challenges. It can be effectively used to help better understand customers, create new experiences and design innovative business strategies and models.

Business Design basically needs marriage of creative thinking and business tools.

• Empathy: Being able to see challenges and opportunities from others’ perspectives and understand what people truly need. Helps in understanding cutomer more than just a buyer for one’s products.

• Multi Disciplinary Collaboration: Leveraging the creativity and intelligence of diverse perspectives to see the bigger opportunity.

• Ideation & Prototyping: Exploring many

possibilities to get to the breakthrough idea.

• Experimentation: Testing new solutions early and often to increase the chance of marketplace success.

The Business Design methodology begins with an understanding of what customers really need. This is followed by a broad exploration of new solutions and culminates with a business strategy that creates competitive advantage.

Structures of Company:

unlimited. It may be a good choice for the production of goods which involve manual skill e.g. handicrafts, filigree works, jewellerymaking, tailoring, hair cutting etc. All profits and losses are borne by the owner, and the owner alone. The entire capital of the business is provided by the owner, though she may raise more funds from outside through loans.

Advantages of a Sole Proprietorship • It is the cheapest and easiest form of business structure

Of all the decisions you make when starting a business, probably the most important one relating to taxes, facilities, risks, profit, sharing is the type of legal structure you select for your company.

• The owner can keep or reinvest the income as she wishes

Not only will this decision have an impact on how much you pay in taxes, but it will affect the amount of paperwork your business is required to do, the personal liability you face and your ability to raise money.

• This business is easy to set up and also easy to dissolve

Sole Proprietorship : This is the simplest and most common form of business which an owner can start, as registration is not required (though a license may be necessary). Sole proprietorship involves only one individual who owns and operates the enterprise. The liability of the owner is

• The owner is in complete control of the business

• The liability of the proprietor is unlimited • There are less legal formalities Disadvantages of a Sole Proprietorship • The owner is responsible for all debts related to the business • It can sometimes become hard to attract employees of higher quality, especially during

the setting up stages of the business • Funds are limited to only personal savings and loans or borrowings from family or friends • Because of the fact that it is difficult to raise capital, this business entity may have limited growth potential • Unlimited liability

Partnership : A partnership is a form of business entity formed by an agreement between two or more people to own and run the business.

Each owner, or partner, shares in the decision making and responsibilities. This arrangement enables enterprising individuals to pool their resources to establish and expand a business.

The owners of a partnership business are individually known as partners and collectively as a firm. Partners have an equal share in the losses and the profits made by the company (or as the agreed split may be). Such firms are most suitable for comparatively small businesses such as retail, wholesale trade, professional services and small manufacturing units. Partnership Firms in India can have a minimum of two partners and a maximum of 20 partners; however, the banking businesses are allowed a maximum of 10. The relation between the partners is created by a contract which may be verbal, written or implied and it is known as

the “Partnership Deed”. The partners can share profits in any ratio.

Generally, a partnership deed contains certain particulars:

• The partners have mutual support and motivation, which is especially important for new entrepreneurs Disadvantages of a Partnership

• Name of the firm • Names of the partners • Location of the firm • The mission statement, or some statement that reflects the firm’s prerogative • Contribution by each partner in terms of capital

• The profits made must be split among the partners in the ratios which are agreed upon • There may be conflicts arising out of shared decisions • Partnerships have a limited life and can end upon the withdrawal of partnership or by the death of one of the partners

is no restriction on the number of partners.

Any two or more persons can create an LLP as long as their intention is to profit from the venture, i.e. not a charity. You can form an LLP by subscribing your names to an incorporation document and filing it with the Registrar. At least one of the applicants must be an Indian resident. A limited liability partnership has its own, unique legal identity and is separate from the partners. It also has perpetual succession.

Advantages of a Limited Liability Partnership • It is relatively easy to set up an LLP, as compared to a limited company • There is no minimum capital requirement

• Each partner’s responsibilities in regard to the firm • Debts incurred by the partners, with interest • The amount of drawings by each of the partners from the company, and the rate of interest established Advantages of a Partnership • Partnerships are easy to establish and the work and responsibilities are shared • There is an increased possibility of raising funds, as capital can be pooled together

• There are also several restrictions on the transfer of rights and there is lack of unanimous authority • Unlimited liability incurred by the partners.

Limited Liability Partnership (LLP): In a limited liability partnership, all partners have limited liability, similar to that of the shareholders of a limited company. The partners have the right to manage the business directly and the personal liability of the partners is limited in regard to any errors, omissions, incompetence or negligence of the LLPs employees or any other agents. There

• It has minimal compliance requirement and cost, so it is becoming increasingly popular among entrepreneurs Disadvantages of a Limited Liability Partnership • Partners may have too much freedom, i.e. they can sign contracts with business without the other partners’ consent • Any capital invested in the company is no longer owned solely by the investor, unlike the sole proprietorship, but is owned by the partners as a whole

Private Limited Company:

A private limited company is defined by the limited liability of its shareholders and restrictions on share transfers. The minimum paid up capital at the time of incorporation of a private limited company is INR 1,00,000.

It can be increased at any time, by certain payments of stamp duties and registration fees. A private limited company must have a minimum of two and a maximum of 50 members as its shareholders, as well as a minimum of two directors and maximum of 12 directors. When the paid-up capital is equal to or exceeds INR 50 million, a company secretary must be appointed. The shareholders and directors need not be Indian citizens. A private limited company has a separate legal identity.

Advantages of a Private Limited Company • Relatively less compliance requirements than on a Public Limited Company • It is an ideal business entity, when the shares of the company will be closely held and when there is no requirement for more capital to be raised through public issue Disadvantages of a Private Limited Company • There are some restrictions on share transfers, as nobody but the members of the company are allowed to transfer shares, and even those transfers have some regulation

• While most of the time, shareholders have limited liability, there have been cases where the director or the manager of the company does not have that protection

Public Limited Company: A public limited company is a company limited by shares in which there is no restriction on the maximum number of shareholders, transfer of shares and acceptance of public deposits.

The liability of each shareholder is limited to the extent of his or her owned shares’ worth.

A public limited company is an independent entity and is perpetual, irrespective of death, retirement or insolvency of shareholders. The minimum paid up capital is INR 5,00,000 and the company must have a minimum of seven shareholders and a minimum of three directors and maximum of 12 directors.

Advantages of a Public Limited Company • You can raise a lot more capital through the sale of shares, which is the largest difference between a Public Ltd. Company and a Private Ltd. Company • Liability is limited to the amount of shares owned by a member; she bears no responsibility as to the creditors of the firm Disadvantages of a Public Limited Company

• Extremely strict regulations through the Indian Companies Act, 1956 involving registration and operation • You may lose control of your company to outside investors as they attempt to refashion corporate management to suit their liking.

• Similarl to a private limited company, the director/manager may have unlimited liability.

Cooperative: A cooperative is a member-owned business organisation with at least five shareholders, all of whom have equal voting rights regardless of their level of involvement or Investment.

However, every shareholder is expected to help run the cooperative.

Like a company, a cooperative is a separate legal entity and shareholders, directors, managers and employees are not liable for any debts incurred unless those debts are the result of flagrant recklessness, negligence or fraud.

Cooperatives promote a democratic style of management and promote the concepts of sharing resources and delegation to increase competitiveness.

A cooperative usually only allows a limited distribution of profits to members/shareholders (some don’t allow any). They are formed primarily to provide a service to members

rather than any Financial gain.

Advantages of Cooperative • It is usually inexpensive to register a cooperative.

• All members and shareholders must be active in the cooperative.

• Shareholders have an equal vote at general meetings regardless of their shareholding or involvement in the cooperative.

• Members, other than directors, can be under 18, though these members cannot stand for office and do not have the right to vote.

• Shareholders, directors, managers and employees have no responsibility for debts of the cooperative unless those debts are caused recklessly, negligently or fraudulently.

• A cooperative is owned and controlled by its members, rather than its investment.

Disadvantages of cooperative • As cooperatives are formed to provide a service to their members rather than a return on investment, it may be difficult to attract potential members/shareholders whose primary interest is a financial return.

• There must be a minimum of five members.

• There is a usually a limited distribution of surplus (profits) to members/shareholders and some cooperatives may prohibit the distribution of any surplus to members/ shareholders.

Salient Provisions of Companies Act relating to Producer Companies In a `Producer Company’, only persons engaged in an activity connected with, or related to, primary produce can participate in the ownership. The members have necessarily to be `primary producers.’

• Requires continuous cooperative education programs for members.

Primary produce has been defined as a produce of farmers arising from agriculture including animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re-vegetation, bee raising and farming plantation products: produce of persons engaged in handloom, handicraft and other cottage industries: by - products of such products; and products arising out of ancillary industries.

Producer Companies:

Formation

• Even though some shareholders may have a greater involvement or investment than others, they still only get one vote.

• Active and direct involvement of members/shareholders in the cooperative.

The concept of producer companies was introduced in 2002 by incorporating a new Part IXA into the Companies Act based on the recommendations of an expert committee led by noted economist, Y. K. Alagh, that was given the mandate to frame a legislation that would enable incorporation of cooperatives as companies and conversion of existing cooperatives into companies, while ensuring the unique elements of cooperative business with a regulatory framework similar to that of companies.

Any ten or more individuals, each of them being a producer, that is, any person engaged in any activity connected with primary produce, any two or more producer institutions, that is, producer companies or any other institution having only producers or producer companies as its members or a combination of ten or more individuals and producer institutions, can get incorporated as a producer company.

The companies shall be termed as limited and

the liability of the members will be limited to the amount, if any, unpaid on the shares.

On registration, the producer company shall become as if it is a private limited company with the difference that a minimum of two persons cannot get them registered, the provision relating to a minimum paid-up capital of Rs. 1 lakh will not apply and the maximum number of members can also exceed 50. Members’ equity cannot be publicly traded but only transferred.

Objects The objects of producer companies shall include one or more of the eleven items specified in the Act, the more important of these being: (i) Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of members or import of goods or services for their benefit; (ii) Processing including preserving, drying, distilling, brewing, venting, canning and packaging of produce of its members; and (iii) Manufacture, sale or supply of machinery, equipment or consumables mainly to its members.

The other objects include rendering technical or consultancy services, insurance, generation,

transmission and distribution of power and revitalisation of land and water resources; promoting techniques of mutuality and mutual assistance; welfare measures and providing education on mutual assistance principles.

Management Every producer company is to have at least five and not more than 15 directors. A full time chief executive is to be appointed by the board. He shall be an ex-officio director and will not be liable to retire by rotation and shall be entrusted with substantial powers of management as the board may determine.

Members’ Benefit Members will initially receive only such value for the produce or products pooled and supplied as the directors may determine. The withheld amount may be disbursed later either in cash or in kind or by allotment of equity shares. Members will be eligible to receive bonus shares. There is a provision is for the distribution of patronage bonus after the annual accounts are approved — patronage bonus means payment out of surplus income to members in proportion to their respective patronage (not shareholding).

Patronage, in turn, is defined as the use of services offered by producer companies to their members by participation in their business

activities.

Reserves Every producer company has to maintain a general reserve in every financial year and in case there are not sufficient funds in any year for such transfer, the shortfall has to be made up by members’ contribution in proportion to their patronage in the business.

Dispute Resolution Dispute relating to producers companies are to be settled by conciliation or arbitration under the Arbitration and Conciliation Act, 1996 as if the parties to the dispute have consented in writing to such procedure.

Difference between social and other business: • Like any business entrepreneur, social entrepreneurs also find gaps and create a venture to serve the unserved ‘markets’.

What is social enterprise?

• Mission : Social enterprises are organisations that have economical, cultural or environmental mission aligned to public or community benefit.

• Trade: Trade to Fulfill their mission. Derive substaintial portion of income from their trade.

• Reinvest: Reinvest the majority of their profit into completion of their mission.

There are different ways to achieve these goals: • They may directly support, train and employ people who are experiencing exclusion and disadvantages.

SocialEnterprise

Is Hero

• They may directly provide product or service to meet the needs to achieve social impact.

• They may generate the income for charitable or social purpose and distribution of profiits for missions.

• The primary difference between the business and the social entrepreneurs is the purpose for setting up the venture. While the business entrepreneurs’ efforts focus on building a business and earning profits, the social entrepreneur’s purpose is to create social change.

• A business entrepreneur may create changes in the society, but that is not the primary purpose of starting the venture.

Similarly, a social entrepreneur may generate profits, but for him/her that is not the primary reason for starting the venture.

• Profitability - not ‘profit-making’ - however, is important for the social entrepreneur. Being ‘profitable’ helps selfsustainability of the venture, and also works as a mechanism for self-monitoring.

• Another key difference between the social and the business entrepreneur is in the meaning of wealth creation. For the business entrepreneur, ‘wealth’ is same as profits. For the social entrepreneur, however, wealth also encompasses creation/sustenance of the social

and environmental capital. Therefore, to be viable, a social entrepreneurship venture must show a positive Social and/or Environmental ROI. For our business structure we need sustainability for social impact.

Risks in the sustainability in my business: The heart of sustainability is a fundamental immutable value set that involves parallel care and respect for ecosystems and for people. The result against which success is measured is the achievement of both human and ecosystem well-being. In order to succeed and to provide shareholder, employee and community value through sustained economic performance, an entity must be able to recognize and respond to risks.

Traditionally, risks have been considered primarily from a negative point of view – that is, risks caused losses and losses were charged against earnings to the extent they were available or against assets when earnings were inadequate. There is, however, a positive aspect to risks. Risks are a part of every undertaking of a business enterprise. The desire to take risk and the ability to understand it are fundamental drivers behind our global economy. Without it, no one would make investments or take the initiatives required to be successful.

Several aspects of risk must be evaluated as an integral part of a sustainability process.

This includes identification, analysis and management of risks that affect current operations. It also includes paying attention to changes in the corporation, changes in the environment in which the entity exists and changes in the world that may directly or indirectly impact future success.

women, children and men - live in rural areas and depend on agriculture and related activities for their livelihoods.

About IFAD

Know Your

Client

The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations, was established as an international FINANCIAL institution in 1977 as one of the major outcomes of the 1974 World Food Conference. The conference was organized in response to the food crises of the early 1970s that primarily affected the Sahelian countries of Africa.

It resolved that “an International Fund for Agricultural Development should be established immediately to finance agricultural development projects primarily for food production in the developing countries.” One of the most important insights emerging from the conference was that the causes of food insecurity and famine were not so much failures in food production but structural problems relating to poverty, and to the fact that the majority of the developing world’s poor populations were concentrated in rural areas.

IFAD is dedicated to eradicating rural poverty in developing countries. Seventy-five per cent of the world’s poorest people - 1.4 billion

Working with poor rural people, governments, donors, non-governmental organizations and many other partners, IFAD focuses on countryspecific solutions, which can involve increasing poor rural people’s access to financial services, Markets, technology, land and other natural resources.

IFAD’s activities are guided by its Strategic Framework on enabling poor rural people to improve their food security and nutrition, raise their incomes and strengthen their resilience.

Goal IFAD’s goal is to empower poor rural women and men in developing countries to achieve higher incomes and improved food security.

Objectives IFAD will ensure that poor rural people have better access to, and the skills and organization they need to take advantage of: • Natural resources, especially secure access to land and water, and improved natural resource management and conservation practices

• Improved agricultural technologies and effective production services • A broad range of financial services • Transparent and competitive Markets for agricultural inputs and produce

tribal areas that work in synergy with local self-governments. These and similar groups participate directly in designing development initiatives, and become progressively responsible for programme and project resources and management. Empowering women and other disadvantaged groups is a

change. In areas such as microfinance and women’s empowerment, IFAD-funded operations have tested institutional and technical innovations that have been scaled up by the government.

• promoting inclusive growth; • doubling the growth rate of the agriculture sector;

• Opportunities for rural off-farm employment and enterprise development

• fighting rural poverty by enhancing rural employment and livelihood opportunities;

• Local and national policy and programming processes

• increasing access to agricultural technologies and natural resources;

IFAD in India

• increasing access to Financial services and value chains;

India is IFAD’s largest borrower, as well as one of its main contributors. IFAD Works in close partnership with the Government of India and other donors, IFAD funds projects for rural development, tribal development, women’s empowerment, natural resource management and rural finance.

• Sharing knowledge and learning on poverty reduction and nutritional security, with particular focus on tribal communities, smallholder farming households, landless people, women and unemployed youth.

IFAD’s strategy in India IFAD’s strategy in India centers on improving poor rural people’s access to economic and social resources. In all operations, IFAD emphasizes the importance of strengthening people’s capacities to establish and manage their own institutions. It supports self-help groups, community institutions and village development associations in tribal and non-

strategic priority.

IFAD has an important role in developing replicable models through project activities, and it acts as a catalyst for far-reaching innovative

Post-Tsunami Sustainable Livelihoods Programme for the Coastal Communities of Tamil Nadu The goal of the programme is to enable thousands of tsunami victims living in the coastal areas of Tamil Nadu to return to a

stable and productive way of life. Targets include people who live in coastal areas, including fishers, wage workers in the fisheries sector, farmers and agricultural laborers’. There is a specific focus on marginalized groups such as women who are heads of households and members of scheduled castes.

The programme’s aim is to improve the livelihoods of people affected by the disaster.

It promotes community participation and planning. The programme includes support for sustainable resource management in coastal areas, access both to rural financial services and to a social safety net in the form of insurance and community-based sea-safety and disaster management. It also provides for employment generation and skills training, and assistance in programme management. One of the programme activities has the aim of empowering women to improve their incomes from processing cashews.

Self-help group: a small economically homogenous affinity group of rural poor, voluntarily formed to save and contribute to a common fund to be lent to its members as per group decision and for working together for social and economic uplift of their family and community.

Need of SHG: Self-help groups are necessary to overcome exploitation, create confidence for the economic self-reliance of rural people, particularly among women who are mostly invisible in the social structure. These groups enable them to come together for common objective and gain strength from each other to deal with exploitation, which they are facing in several forms. A group becomes the basis for action and change. It also helps buildings of relationship for mutual trust between the promoting organization and the rural poor through constant contact and genuine efforts.

Self-help groups play an important role in differentiating between consumer credit and production credit, analyzing the credit system for its implication and changes in economy, culture and social position of the target groups, providing easy access to credit and facilitating group/organization for effective control, ensuring repayments and continuity through group dynamics; setting visible norms for interest rates, repayment schedules, gestation period, extension, writing of bad debts; and assisting group members in getting access to the formal credit institutions.

Thus, self-help group disburses microcredit to the rural women for the purpose of making them enterprising women and encouraging them to enter into entrepreneurial activities.

Credit needs of the rural and urban poor women are fulfilled totally through the SHGs. SHGs enhance equality of status of women as participation, decision-makers and beneficiaries in the democratic, economic, social and cultural spheres of life.

Functions of SHGs The important functions of SHG are the following • Enabling members to become self-reliant and self-dependent.

• Providing a forum for members for discussing their social and economic problems.

Enhancing the social status of members by virtue of their being members of the group.

• Providing a platform for members for exchange of idea.

• Developing and encouraging the decision making capacity of members.

• Fostering a spirit of mutual help and cooperation among members.

• Instilling in members a sense of strength and confidence which they need for solving their problems.

• Providing organizational strength to

members.

• Providing literacy and increasing general awareness among members, and • Promoting numerically and equipping the poor with basic skills required for understanding monetary transactions.

The features of self-help groups .

the bank account. The deposit kept in the bank is used for giving loans to members for purposes including consumption at the rate of interest decided by the group (usually higher than what the banks charge).

• Sources of funds are the contribution of

The SHG, being a group of like-minded persons, gets empowered to solve most of its problems of a non-financial nature such as raw material and input supply marketing, better adoption of technology, education and training for realization of its objectives for development.

SHG members and Mr. Nagaraj

• An SHG normally consists of not less than ten persons (with a maximum of twenty) of similar economic outlook and social status.

• It promotes objectives like economic improvement and raising resources for development and freedom from exploitation.

• It has its own by-laws for the proper functioning of the group as well as for the observance of certain rules by the group members and regulations concerning membership.

• The form of such a group could be mostly on an informal basis (unregistered).

Periodical meetings of members are held for solving their problems (economic and social) and they collect fixed savings of the members • The savings of members are kept with a bank in the name of group and the authorized representative of the group operates

member’s savings, entrance fee, interest from loans, proceeds of joint business operation and income from investment. Funds may be used for loans, social services and common investment.

Sathanai Sathanai SHG is one of outcomes of The Tamil Nadu Corporation for Development of Women Ltd. (TNCDW). It was formed in 2001

with group of 16 members. Now they are 20 members in the group.

• Leadership - election or nomination of leaders, rotation of leaders etc.

In IFAD’s PTSLP initiative 5 group members of Sathanai became part of cashew unit.

This Unit is situated in the kullapalayam village, Auroville. The motivation to be part of this production unit was the cashew trees around the land near Auroville. Vijaya is head of Cashew unit. This cashew unit was formed in Oct 2012.

• Personal / Social improvement minimum literacy to be achieved, social work to be done, convergence of facilities etc.

Funds were collected from IFAD and a bank to buy the production machines and raw materials.

Norms of Sathanai: Every SHG has certain norms which help them function sustainability.

Major Activities: •

Meetings - time, periodicity

• Keeping record of Savings - amount, periodicity, rate of interest.

• Track record of Credits - procedure for sanction, ceiling amount, purposes, rate of interest to be charged, repayment period.

• Fines - defaulters in attending meetings, savings and credit repayment

Parts of cashew Fruit

introduced to Mozambique and then India in the sixteenth century by the Portuguese, as a means of controlling coastal erosion. It was spread within these countries with the aid of elephants that ate the bright cashew fruit along with the attached nut. The nut was too hard to digest and was later expelled with the droppings. It was not until the nineteenth century that plantations were developed and the tree then spread to a number of other countries in Africa, Asia and Latin America.

Cashew nut and its Nature The Cashew plant belongs to the family “Anacardiaceae”. Botanists call it ‘Anacardium Occidentale’. The nut is about 22mm long and resembles the shape of a kidney. Its shell is about 3 mm having a soft leathery outer skin and a thin hard inner skin. Cashew is believed to be a native of South Eastern America (Brazil), brought into India in 16th century and made popular in the Malabar Coast of India by the Portuguese. In Kerala where it is being grown in large tracts, it is known as parangi andi or ‘foreign nut’.

Story Of An

Elephant’s

Poop

The story of an Elephant’s Poop The cashew tree, native to Brazil, was

Cashew tree is polygamous, tropical and subtropical and evergreen. It ranges in size from a small shrub in poor dry soil to a tree of 40 feet height in fertile soil and humid climate.

The tree gives fruits just three years after it has been planted.

All the parts of the cashew tree are useful in some way or the other.

The nut is nutritious and tasty, containing 21.2 per cent protein, besides calcium, phosphorous and iron. Besides, it is also used in the treatment of several common diseases

Cashew Nuts (happy Place)

like loss of appetite, general depression, nervous weakness, scurvy, anaemia, gas trouble (acidity), cough, urinary and liver disorders and diabetes.

The cashew apple is red or yellow in colour and has a pleasant taste. It contains 10.55 per cent of fermentable sugar and 261.5 mgs per 100 grams of vitamin C. Both the fruit and juice have good anti-scorbutic properties valued as diuretic. The fruit has a healthy effect on the kidneys and in advanced cases

Cashew Nuts Shell

of cholera. Cashew fruit is useful as an anaesthetic in persons suffering from leprosy, psoriasis, blisters, warts, corns and ulcers.

On fermentation the cashew apple yields an alcoholic beverage from which a spirit (for

drinking purposes) is distilled in Brazil. In Goa, it is called “feni”.

The wood of the tree is used for shipping crates, boats, and for making charcoal. A gum, which resembles Arabic, is also obtained from the stem. The Red Indians derive a poison from the gum for their arrows and their weapons of offence and defence. It is found that the poison is closely related to other American poisons like ivy and sumac.

One of the by-products of the cashew processing industry is cashew nut shell liquid (henceforth CNSL). The cashew nut has a double outer shell, which accounts for 70 percent of its weight and is breakable only with a sharp blow. An acid oily liquid of phenolic nature lies dispersed between the two shells containing an alcohol “cardol” an anacardiac acid. The CNSL, extracted from this liquid and patented by a foreign Multinational Corporation, is used as lubricant in brake lining, manufacture of insecticides, ink, varnishes and polymers. It is also used for tarring boats and preserving wood from insect attack.

Very recently, it has been discovered that the thin skinny layer covered over the kernel has tannin, which can be used to condition the skin in tanneries. Besides these multifarious uses, research is in progress to find the use of smoke emitted while roasting of cashew.

Cashew Acticity

Overview of processing of Cashews The market for cashew nuts has always been volatile. The rapid changes in the cashew processing equipment market are relatively recent. It could be argued that the cashew

The expansion in the growing of cashew nuts has not seen a major change in the location of the processing of cashew nuts. Processing of the cashew nut to remove the kernel remains largely confined to three major countries India, Vietnam and Brazil.

Cashew Processing in India

largely on the proportion of kernels extracted without being broken or damaged. For many years, technology was unable to provide a commercially viable solution to this problem.

As the cost of labour has increased and the quality of other jobs has improved processors have been forced to improve wages and working conditions. This has tipped the balance in favour of some new mechanized or automated technologies.

The objective in processing cashew nuts is to remove the highest possible weight of kernels from the nut in-shell, unbroken and with the distinctive light ivory cashew colour. It is a food product so the taste should remain as natural as possible and the process should be done in a safe manner. There are a number of different methods of shell removal and testa removal.

Processing details in India: India is regarded as the home of cashew processing and for many years was the dominant force in the market with an efficient processing industry based on good availability of skilled labor. In recent years Vietnam has taken over as the premier exporter of kernels but Indian remains the largest processor by far. business is only beginning to develop the characteristics of an industry in recent years.

Previously it was a collection of loosely connected businesses with an interest in cashew nuts each pursuing their own interest.

In general, cashew processing developed as a low investment activity with minimal use of technology. It relied on low cost labour (relative to the value of the product). The profitability of cashew processing depends

The processors could be divided into three groups in terms of their equipment and processing organization:

1. Old style processors utilizing the manual processing and semi-automatic machines not linked together into a process system.

2. New style processors who have upgraded using the new machines in a semi- automated process.

3. Advanced processors who have introduced fully auto-mated plants.

In India there are two main methods of processing. The “steam and cut” process was invented in Mangalore and is known to give whiter kernels and fewer scorched kernels.

This has spread with many of the Kerala manufacturers adopting the “steam and cut method”. The traditional “drum roast” method

Cashew Processing - Drum Roasting In-shell nuts are dried preferably on a concrete apron to a moisture level in the region 8% to ensure that the nuts will not deteriorate in storage. The nuts are then stored in a dry

Cashew Processing in India - Drum Roasting

There has been reluctance in the past to invest in capital intensive cashew processing in India.

The trend has been for many years to continue with manual processing introducing some upgrades of machines as they become available.

Build-ing of new fully automated plants is unlikely in the short term given the attitude toward investment and investment from outside is not likely. It seems likely however, that pro-cessors will invest in machines to upgrade their process and reduce their reliance on labor.

A long term trend in India has been the separation of the process into units. From the mid 1990’s on some processors started to separate the packing and grading from the rest of the process. This had the impact of spreading the labor requirement. It also had the impact of making it possible to have a packing center audited and approved without having to have the full processing unit approved.

is still often seen. The roasted nuts are cracked by striking the nut.

secure warehouse until needed for processing.

In-shell nuts are fed continously into a cylinder slowly rotating over a fire, with a slight slope on the cylinder to ensure the movement of the nuts along with it. Usually cashew shells are

used as fuel. The nuts have been heated to fix the cnsl and to make the nuts brittle so they will crack along the seam when struck with a small wooden tool. Drying of kernels to loosen testa to allow for peeling of the nuts. This is a critical area where breakage can occur reducing the value of the kernels. The nuts are placed

Removal of the testa : At this stage the shell has been separated from the nut and the nut has been dried and cooled to make the testa (skin) easier to remove. Good quality properly dried nuts will allow the testa to be removed by rolling between the fingers. However not all nuts will allow that and some break in the

Cashew Processing in India - Steam cut

the international grading system. Wholes are graded by size and colour. Pieces are grades by type of breakage (split,butt) and then by size of the pieces . Pieces may be graded within the Indian domestic market system.

The cashew kernels are now cleaned with an aspirator, weighed into 25lbs or 50lbs batches and packed using a vacuum packing machine which extracts the air and flushes the pack with carbon dioxide to protect the kernels and increase the shelf life. The packed pouch is placed in a carton which is marked, taped and stored for shipment. Tin packing is still preferred over flexi packs in most of the countries.

Cashew Processing– Steam & Cut In-shell nuts are dried preferably on a concrete apron to a moisture level in the region 8% to ensure that the nuts will not deteriorate in storage.

in an oven on trays on trolleys and heating to a moderate temperature for a long period causing the testa to become brittle and separate from the kernel.

process. In India manual peeling is still very common although many of the factories have brought in machine peelers.

The nuts are graded by size and colour into

In-shell nuts are graded into 3 or 4 different sizes to allow even heating , easier shelling and pre grading. Very small nuts, dust and foreign matter are removed. In-shell nuts are steamed in batches usually 320kg. Pressure is released into the cooker at 120lb/s and kept steady having dropped to 40lb/s. Time 10-15 minutes from when steam emerges from cooker. Nuts are then cooled for the cutting section.

Nuts are shelled by using a cutting tool which grips the nut and cuts the shell which is then separated by hand. Both hand and pedal operated machines are in use in India. The nuts have the testa or inner skin still intact. To prepare for removal of the testa by manual or machine methods they are heated to make this skin brittle and loosen. This also kills any infestation. The ovens often open one side from shelling and the other for removal to peeling area. Ovens are both shell fuelled or electric. Temperature and time control are essential.

1.Removal of the testa is either manual by rubbing the nuts between the fingers and finishing with a small knife.

2.Peeling machine which usually utilizes a rotating cylinder followed by an air peeler.

Peeling results 70-80% peeled.

The nuts are graded by size and colour into the international grading system. Some factories do the grading using colour sensors i. Grading of Wholes by size and colour ii. Grading of pieces The cashew kernels are now cleaned , weighed into 25lbs or 50lbs batches and packed using a vacuum packing machine which extracts the air and flushes the pack with carbon dioxide to protect the kernels and increase the shelf life.

The packed pouch is placed in a carton which is marked, taped and stored for shipment.

was initaive of Loyola College of management Chennai. LIBA and CADRE are working together in this. Where Liba is focusing on business development, skill trianing,taxation, operation management, Costing, market linkages. CADRE is working on sensitization, hygine, Community support.

My Field trip was hop and stop journey. My first destination was chennai. I was fortunate to meet Mr. Sandeep varma who is leading the cashew unit project based out of the Panruti region. They total have 210 SHGs working for them. I got a chance to accompany him to the field.

Unit I (With 12 workers Steam Cut Technique)

Loyola college’s initiative is different and interesting. They have these 210 SHGs which are under study for 3 years. They have divided them into 4 groups. A,B, C, D. these groups will be trained for different aspects.

Group A It will get input of Business knowlegdge as well as sustainability of the community support knowledge.

Group B It will get only Community sensitization

Field Visit

A Live project has its own beauty of field visit.

I was waiting for IFAD’s Approval for the field visit. The iternary was planned. Thanks to Mr. Jacob I had knowledge of few projects running in Tamil nadu on the same line. One of them

Group C It will get business Inputs And

Group D will get no inputs and they will be allowed to follow traditional methods.

The outcome of the enterprise will be studied and observed for the three research years. The best of which will be refined and implemented for the social impact.

They have planned trainning center for which Mr. Sandeep was visiting cuddlore. The training center will be for commercial growth training as well as safety and heatlth related training.

Commercial aspect would be business learning.

Calculation of cost. How to gain maximum profit, What legalities they need to follow. Etc. After search of place we went to 3 different sized cashew production unit. First house which we visited had 12 ladies working for the unit. They processed both qualities.Nuts are imported from west Africa and vietnam as well as local Cashews. The local cashew gets a better price than imported ones. The unit had its system. Each of the worker was paid 20 to 25Rs per Kg. the wage rate depends on the technique followed.The First unit had organised way of production. The Son of the owner wanted to get into legal documentation and do comercial business.

The Second unit which we visited was a house where at the back small hut was used for processing cashews. Here the most traditional method was being used. The lady was breaking

cashews with stone without boiling the cashew nut which need highly skilled labour. This method helps to preserve taste of cashew. IT has best quality of cashew. Issues we found out was the rate at which the cashews are supposed to be sold was decided by the agents.

Samples of cashews and learning about

Cost of indian RCN is more because of better quality and taste. Where as there are chance to have nut broken or spoilt in the imported RCN. Raw nuts are traded in bags 1 bag of 80 Kgs of raw nuts yeild around 20 to 22kgs of processed

Unit II (With 4 workers Drum Roast technique)

cashews: The Raw cashews are of 2 types.

1.

Indian RCN (raw cashew nuts) 2.

Imported RCN

kernals. Weight reduces by a multiple of 4.

The shell of the Cashew nut is given to the compannies who extracts the shell oil which is then used for industrial purpose. This is additional revenue for the nut processor.

There are 2 ways to get the RCN. They take a land on lease for the months of harvest. And the cashews are collected or they are bought from the agents. Which costs them from 7200 to 6800 INR. After my visit to cuddalore I went back

Ravi teacher in the school based out of there.

After visiting IFAD office I visited the unit.

The unit is located inside auroville. It looked different than the other shops arround. A Shack like structure attracts tourist attention. The Unit is divided into 3 sections. One is Production ,

The SHG was started in 2001. After Tsunami in 2004 with the help of IFAD they started this unit. The unit is also assisted by IFAD member Mr. Nagraaj. Major book keeping and accounts are look after by Mr. Ravi. Out of his own interest Mr. Ravi has taken up this work. He was a school teach prior to 2004. But after the Tsunami he has devoted his life to help SHGs to grow.

Pondicherry Unit

to chennai. Next dayi had to leave for Pondicherry Auroville to visit my unit.

I reached Auroville met the IFAD local officer Mr. Suresh Kumar and assigned head of the unit Mr. Nagaraaj. Met the most enthusiastic Mr.

Bommaiyarpalayam Panchaya with 1214 members. Sathanai SHG is lead by Vijaya.

She also works in the Unit. She looks after orders, payments, transport . There are other members of the SHG are involve in the Cashew unit. In the unit 4 SHG members and 3 workers are working at present.

one is storage and the back of unit has boiler and cashew trees. The property touches the road. It is surrounded by sovineir shops and hotels as its also known as tourist place.

There are more than 70 SHGs in

Get to know them well: Interviews are a good tool which helps tounderstand people, place and problem in better way. I interviewed workers, tourist around the unit, shops around the units.

23.Insurance and security if any 24.Government help 25.Difficulties in leading day to day life I think when people are at the real situation they have no hesitation to give out the details.

Workers were very co-operative. Language

In the questionnaire I came to know about their aspirations, about what they think about unit, What do they feel about their product, What is over all work culture, their bonds with each other.

Gup - Shup with workers in the Unit: 1.Name 2.Age 3.Daily routine 4.Family background ( who all are there, What each one of them do) 5.Food, shelter, clothing related questions (Where do they stay, How do they stay) 6.Festivals 7.History of family 8.Why working here 9.Medical queries 10.Shopping places(grocery) 11.Other skills 12.Beliefs (regional if any) 13.Working difficulties (finance, health) 14.Ways to Conquer those difficulties 15.How long they are in this unit 16.Off season work crisis (if any) 17.How do they manage their finances 18.Extra work for earning little extra 19.When in case of emergency need of money what do they do 20.Details of Lenders if they admit any 21.Travel 22.Benefits out of job

Time with Laxmi

was a major barrier but women to women understanding made it little easy for us. I went to visit them in their houses. People were warm to me. I had invitation to go for lunch and dinner and share their place with them.

Interview with Laxmi: Laxmi is a 29 year old lady working in the unit for past 2 years. She is married for past 10 years. Her husband Mr. Pawade works

in a welding shop near by unit. They travel together from home to work together. She has 2 kids, daughter Nandhita 6 years old and son Nidhish kumar 8 years old.

She went to school. She did her schooling till 5th grade. Her father was against educating

monthly INR 300 for girl and INR 150 for the boy. While being asked why she was ready to pay more for girl she said “She is the tomorrow of her family.” And the boy can always take care of himself. She learns English greetings and words form her daughter in her free time.

With Unit worker

INR a day.

She finds it difficult sometimes to make 2 ends of the month meet in such a low pay.

She feels the job deserves more money but due to transparency in the business she has no complains about getting paid less. She has a gut feeling that this business would do well.

I asked her if you have to stand for a day to do De- Shelling its very tiring still you are cheerful and happy about work.

She told me “If I won’t be happy how my work will be good.”

This did not suit only her it was applicable to all of them. She addressed Bhaggya and Bathma and said we believe in this. We come here to be happy. Sorrows are everywhere. We have to find our own happiness.

girls so even if she was interested in completing her education she couldn’t. She belongs to Villapuram village and after marriage she settled in Auroville. She wants her kids to get a good education. She pays for their fees

In the unit she is the most skilled member and Enthusiastic person around. She learnt it form the lady who left the job for other work in the Auroville. She can do DE-shelling work faster than others and better than others. She gets 120

Mr Pawade gets 300 to 450 INR a day and he works for 15 to 20 days a month. Generally she doesn’t miss a work day unless there is festival or some function she feels going there is important. There is no one to take care of medical expenses so can’t afford to get sick. She also takes off to go and pick cashews from the fields in the season. She feels if and only if the unit could pay more there will be more people joining this unit.

When asked how do think the unit can do well. She replied only if we get more orders

we can make more money. We can get more customers here if we have more number of people working here. So it’s a cycle. About the cashews they produce she claims it to be the best quality one as it is grown in this country known as local cashew. It is little costly and tastes better than the imported one.

About extra skills set She said I don’t know much but if you teach me I will learn to speak English also. I like to learn so I will develop skills if you give me chance to.

And Our interview ended with glass of Pepsi and wishing betterment for the unit.

machines to work for a day.

6 pm she starts cooking for dinner.

She takes lunch with her husband as her husband’s workplace is nearby he drops in for lunch with her by 1.30pm

7.30 her kids have dinner and she and her husband eat together at 8 pm.

Then she works till 4.30 when she has to go

They watch TV serial at 8.30 to 10pm while her kids study.

Hands on process with Laxmi

Day in a life of Laxmi: Wake up at 5 am Clean the house Cooks and packs lunch for all of them and makes breakfast for son and daughter. (Son gets lunch from school) Drop of the kids to school at 7.45am they have school till 5 pm.

Comes home gets ready and rushes to the unit.

She sweeps the unit with other workers.

She checks yesterday’s stock and makes todays calculation as per the order with Vijaya.

She decides how to work for the day which

pick her daughter up from school.

And they end their day at 10.30 pm to 11 pm.

While on the way to home she buys vegetables for a day.

Looks different on Sundays where she prefers spending time with family. She sleeps sometimes in the afternoon on Sunday. She sits

out side with her neighbours socialising. She plays indoor games with her daughter (snake and ladder)

Stakeholder’s Map

Chat with Vijaya :

While I was there I revisited my stakeholder’s map which I had made on assumptions before going to field visit. The stakeholder map was made on the basis of Power and interest equation. In whole of the supply chain I

Vijaya is the SHG member and in charge or owner of the unit. She is 39 years old. She is married for last 20 years. She has 3 sons. One is in the mechanical engineering near Chennai.

The Middle one is in 6th grade and other one is 5th grade.

Stackeholder’s Map

Her husband is into real estate business. He makes around 7000 INR per month. He is very supportive in this business. He takes responsibility of order transportation. His brother’s shop is available for storing the cashews. He is eager to expand this business.

Want to involve his son into this business.

Vijaya’s aspiration is to be independent and be successful entrepreneur. She has good house.

She takes Major responsibility of SHG. She is involved in SHG’s other business as well. She feels her major problem is communication.

had gathered possibly all stakeholders. After revisiting and comparing I could finalize them and could plot them on the map. (Stakeholder map)

She takes 2 acers of land on lease for cashew collection. She pays 20,000 for each acer.

There are total 120 trees. She wants get proper training and make the unit better. She wants to open opportunities for other ladies. She wishes to pay them more than what overall Auroville pays for the labor.

My observations about the unit Issues Identified The unit was situated in the Auroville. It has a benefit of being only one in the area. It has cashews trees right next to the unit.

Auroville has tourist coming in all the time of the year. There are foreigners from 128 different countries across the globe visiting in Auroville.

There is a Lack of organization like maintaining records, keeping track of production.

Lack of Cleanliness is major drawback of the unit.

People have Lack of market knowledge.

Market around has rate ranging from 1000 to 1300 INR per Kg. The unit needs good branding and packaging.

They need business learning.

Vijaya and Vijaya’s Youngest son

They have verbal contracts with the hotels around for cashew supply. The small institutional shops allow them to keep their product on the shelf.

Packaging of the other products is better and appealing. Auro is the brand which is seen around.

Lots of hand made products are being sold in Auroville.

Selling price of the cashew from unit is 450 to 500 INR per KG. Whereas for that quality of cashews 600 INR is the minimum processing cost in other processing units.

The unit also provides service for processing cashews as job work. They charge 35 INR per KG.

There are cats and dogs loitering in the production house.

They were not trained.

IFAD needs to show more interest.

Equipment’s and facilities are underutilized.

They need new focus for the business they need the realization of Why what and How this can be done.

The golden circle is made up of 3 circles.

The core is Why, which is followed by ‘how’ and outer circle has ‘What’. Most influential companies start with Why core of the circle.

Why: this is not about making profit , but rather about companies believe in, what drives them.

Golden Circle

How: Companies explaination of how something is better or unique.This helps in motivating consumers decision making.

What: This is the circle of products or services a company sells.

The best companies in the world align their belief with what the customer bellieves in too.

For My Enterprise: Why: To preserve the happiness of the working women by creating sustainable livelihood.

Golden Circle Theory

After coming back from the field we heard Simon Sinek’s golden circle Ted talk. In the talk he explained the secret of Apple’s success. The companies who start with the venture Why are the most successful businesses today.

How: • Having experience of being in happy work place (good cloths, lite surroundings, Using colors, illustrated walls) • Peacful • Adequate Economic growth and empowerment of women in the business.

• Including sharing as a concept • Sharing happiness with the customers.

• Sharing producers Story and making

customer feel good about good deeds.

What: Making good quality cashews with different flavours with good packaging.

Sharing Happiness with packs which has concept of sharing your snacks with others.

increase the value: resources, expertise, and taking risks like providing financing. A farmer cannot make money from cashew without a buyer. Likewise a buyer depends on truckers to get the cashew to the port, and an exporter relies on the shipping company to export the raw nuts abroad. Each person in the cashew value chain should make a fair income based on the inputs and services that they contribute to move the cashew to the market. The next page, details the key responsibilities of each participant in the cashew value chain.

Cashew Value chain

Value Chain

Cashew passes through several stages and actors as it moves from the farm to the consumer.

At each step of the way value is added to the raw nut. Each person or company involved in the value chain must contribute something to

Cashew Value Chain Enhancement: Cashew Value chain Enhancement

Cashew Value chain Actors and Roles

ultimately be about how the enterprise will generate both financial and social value and what the relationship is between two types of value in the enterprise. It’s all about how an organization does the business, how the business generates its revenue, what value a business offers to whom, who the customers are and why customers would keep coming back to us. Business model was helpful in understanding how and why business will work. It also helped me to design and to innovate the business plan.

I have used BMC by Alex Osterwalder and Yes Pigneur to work on this enterprise and it have found the canvas to be very helpful, particularly in early exploratory stages of development and in relation to growth and innovation stages.

Managing a social enterprise is not about just adding business skills to the realm of social impact and stirring. Balancing a social mission with an intention to trade and manage a business requires a blending of skills which is greater than the sum of each set of skills alone.

Business

Canvas Model

The purpose of the business canvas model is to help to understand stakeholders and to clearly articulate how the business is configured so that it creates, delivers and captures value.

In the case of social enterprise this would

My focus was on employment outcomes amongst people who have previously experienced long term unemployment or low pay to lead normal life or lack of business knowledge. So there is a need of supporting and training people for better skills and business understanding. There may be cost

Business Canvas Model

implications, in addition to challenges in relation to key activities, Customer relationships and key resources.

be customer wanting to help the social impact and another customer would be people who want to purchase the cashews.

For making business model for social enterprise, It is necessity to see how business and social impact we trying achieve how these two interact, How they both compete, how are they are symbiotic, What opportunities there are to bring them into alignment and what tensions exist in between them.

Cashews are generally bought by middle class to higher economical background families.

Flavored of cashews generally are consumed as snacks and on festivals. To support our business we need to focus on the higher social strata so as to earn and make profit for sustainability of the business.

Value proposition: While exploring a business model I started with “What value are we creating? As earlier mentioned social enterprise wont only focused around Commercial aspect of business. We can focus on customer who is center of whole the Business. However social enterprise will require questions like what social value we are creating.

In the social enterprise it is equally important to sell the impact and thereby to ensure that the impact cost can be covered by revenue beyond earnings from trade. In both segments we need to consider retaining the customer.

For ongoing impact we need to have repeat customers.

Social value of our enterprise is women’s empowerment by sustainable or meaningful employment. And on the other hand commercial value would be selling out fresh naturally flavored cashews. Impact value should be another prime purchase reason for the consumer.

Customer Segments: While considering customer segments for social impacts as the value proposition there will be 2 categories of customers segments. One would

Questions I considered for Customer segments: 1.

What kind of value we are creating for particular segment.

2.

Who are the commercial customer segment why they would continue to buy cashews from my enterprise.

3.

Are customers also co-creators?

Channels: Working out how to reach and how to communicate and help them evaluate the value proposition are the keys part of opening business opportunities in social enterprise.

There should be appropriate channel where

the impact brand can stand out in the crowded market. Which channel will allow delivering our value proposition to customer? For e.g.

Home delivery, easy availability, Brand loyalty.

Customer Relationships: Customer relationships are very critical with respect to any business. If customer is attracted to our value proposition of naturally flavored which is purely commercial then we should aim to retain the customer on that basis.

The aspect of customer loyalty is a way of relationship from the perspective where enterprise centers on the idea of building customer loyalty which can be around social impact. The growing customer base can help to grow social impact. The tradition relationship would be how can this form a community or how they help in co- create or co produce in the business with us.

Revenue Streams: Revenue streams are at the top who help to run the business and to have social impact. The revenue is generated majorly from the trade.

Social enterprise needs to generate a profit to deliver impact. We can also have benefits form the funding, subsidies rates and donations.

Major part is we need to evaluate the social value which has to be saleable. Whether our commercial customer or impact customer would buy it or not and thereby we will be able to generate the revenue. Social value could get them to a point where it can be

independent revenue stream for the business.

Key Resources: Key resources are the assets which could be tangible and intangible that makes your business work. In case of social enterprise it is commercial as well as impact model.

Commercial key resources could be brand, Knowledge, Distributor networks, Infrastructure, business knowledge and skills, Staff, Partners, Cash and credit lines. And impact resources would be Support staff, Access to funds to cover impact cost. IFAD contribution to buy RCN and machineries is possible due to impact resources.

Key Activities: Key activities are the things one must do to deliver social and commercial value.

For eg. Commercial activities are those which are needed to run the processing unit. Like quality checks, Insurance of product, Efficiency in delivery. In impact publicizing the enterprise, conducting participatory activities and gathering support are major key activities.

Question I asked to myself was: What would be the key activity to make my cashews sell the best. What would make it stand out? What should be the value to recover my impact cost.

Key partnerships: Partnerships refer to the network of supplier , allies , supporters , co –creators that are needed to ensure that business delivers on both impact

and commercial objectives.

Key partnerships for my enterprise would be with suppliers providing raw cashew nuts, agents who buy processed cashews, institutional shops to help to sell the cashews.

buyers • Develop a short- and long-term business plan with detailed and realistic budget figures • Invest the needed resources

Cost Structure: Cost structure should consider the commercial operating and production cost as well as the impact achievement cost.

For instance the unit will have many women with no skills for them training cost would be impact cost. Who haven’t worked in long time to prepare them for job. The business will have fixed cost and variable costs. Legalities, taxes, Rent, electricity material cost, packaging material cost, etc.

• Pay attention to management (resources, labor, etc.)

• Seek to produce and maintain a high-quality product • Develop and adapt new skills and technologies • Strive to make your product different/better than others

An individual or group involved in a cashew business should incorporate the following practices to gain maximum profit:

• Maintain proper packaging and storage for the product

• Clearly define the idea/vision for making money

• Advertise and promote sales through various market channels (collective sale or prenegotiated sales)

• Research all aspects of the cashew business; become an expert in cashew before investing • Collect information on the local and export market (who is buying, how much are they paying, what quality/quantity the buyer prefers, etc.)

• Contact stakeholders in the market to find

• Keep updating market information (Are there new buyers? Is there a different quality getting a higher price? Etc.)

Cashew Business Opportunities Good climate for cashew production Availability of land

Availability of market Availability of labor Low cost of production Institutional support (Government, NGOs,) Existence of financial institutions Presence of investors and expertise

Cashew Business Risks Market instability Price fluctuation Excessive heat during flowering of trees Land disputes/conflict Losses due to animal foraging/theft during marketing season Uncontrolled bush fires

I interviewed people in supermarkets or hotels then gathered another 8–10 people to comment on various types of packaging and taste several types of cashew nuts to identify their preferences and perceptions in a consumer panel.

Market research is the process of collecting valuable information to help you find out if there is a market for your proposed product or service. The information gathered from market research helps budding entrepreneurs make wise and profitable business decisions.

The key to any successful business is to understand what it is that your customers want and giving this to them in a way that is profitable for you.

Market Visit

I researched three levels of the cashew value chain, asking the following questions:

Distribution channels: Cashew shop/ Shop owner Name Of the shop Owner’s Back ground Why Cashew as a product Understand supply chain

Many entrepreneurs make the mistake early on of thinking that they know what their customers want without ever asking them. This can result in some very expensive mistakes later on.

Profit and loss equation

In order to find out what exactly it is that your customers want one must undertake a process called ‘Market Research’.

How do you calculate your margin of profit

In Institutional Stores, field Research was done by standardized questionnaires to interview Store managers, shopkeepers, and food processors at supermarkets, hotels, gas stations, bakeries, and restaurants.

Packaging Related queries

Risks in the business Selling and Procurement cost

Ups and downs in the business

•Material oSelling point of view oInvestment point of view

oDurability point of view •Quantity wise

Where does he buy his stock in emergencies?

Packaging is done specifically for his products?

processed cashew nuts?

Selling point

What he looks when he buys cashews?

Who consumes cashew nuts?

Selling radius calculation

Interviews of customer

What kinds of products are preferred by consumers?

His background study How he works with cashews

General information about customer •Family •Job •Monthly earnings and expenses •Pass time activities •How day in their life looks •Are they passionate about trying new arrivals?

•Cooking habits •DO they prefer traditional methods of cooking or ready to cook?

Where does he buy from?

What is brand value for them while purchasing

Demand For Cashew Nuts

What is his requirement?

What are their buying habits?

What they think about cashews?

The cashew kernels produced in India are sold both in the domestic market and the international market. The cashew kernels are consumed as snacks and there is also a growing demand for cashew kernels from confectioneries, hotels and ice cream manufacturers. Increase in the inflow of tourists to India presents an additional opportunity. Cashew competes with almonds, walnuts, pecans, pistachios, peanuts and other edible nuts. Because of its high value, it is positioned as a premium product. The domestic market has been expanding continuously, particularly during

Licensing Seasons of sale Does another product around affect the sale

Sweet shop karagir interview:

What ratios of cashew gets utilised How frequently purchase happens

What stops them to buy cashews?

How they react to the word social?

Where his products are on shelf What are precautions one has to take?

What matters the most •Visual appeal •Referred by friend

What are his losses like?

Are they impulse buyers?

What makes more profit?

Who influences the purchase in the family?

Where do people buy and eat cashew nuts?

What can be done to increase their consumption?

What kind of packaging they prefer?

Are they willing to pay higher price for excellence?

the last two decades, because of the changing life styles of the burgeoning middle class (particularly the upper middle class) in the country. However, there is no reliable estimate of the consumption within India.

Market Reseach Insights Cashew nuts are a luxury snack food, compared to other items commonly available in Bangalore supermarkets and small shops.

Snacks most commonly consumed by people interviewed in the survey are Home snacks (26%), chips (32%), traditional biscuits (20%), Haldiraam snacks (10%), MTR and other munching’s (18%), Peanuts(6%). (numbers taken from interviews I coducted) Price is seen as a principle barrier to market growth across all channels. Smaller packs, with lower prices than the common 250 gms or 500gms pack, could attract larger markets.

Packaging quality is also seen as a limitation, particularly in high-margin channels.

Super market study Insights The three key markets are snackers (sachets bought as throughout the year) and local consumers buying for celebrations (decorative packing of cashews for festivals) health conscious people (Diet food), Ladies running out of time due for cooking and want delicious food (need Cashew paste) .

No supermarkets do any marketing to promote Cashew sales

According to distributors and shopkeepers , the main barriers to good sales are: Poor packaging hampers quality at times Price Lack of Promotions Terms of buying cashews from processor: Credit (more than 80% shops have credit system) Consignment (sweetshop vendors prefer consignments) Cash (selling is only in terms of cash)

Small Road side shops study Insights Small roadside stands specializing in cashews, peanuts, and traditional biscuits—are a major distribution channel in the snacking spaces Most retailers buy semi-finished cashews from artisanal processors from Market.

Terms of payment to suppliers: Cash According to distributors, the main barriers to keep cashews in small sachets to increase sales are: Price Packaging Lack of media promotion of cashews’ health benefits

Distribution Analysis Cashews are widely distributed in the Bangalore There is difficulty distributing broken grades in supermarkets, shops, and hotels in the capital due to quality perceptions and cashew’s image

true in lower-income area where Bangalore’s semi industrial (Bomanhalli , kadubaisan halli) area is based. These packages are simply unlabelled hand-tied plastic sachets and simply sealed sachets. containing small cashew pieces, plain or

Market survey table

as a luxury goods.

Small packages (25g) of the lowest-priced broken cashews sell well in small shops in markets and through kirana sellers. This is also

buttered and salted, and sold for 1.5rs/ gram¡ Cashew sellers had a delhi suppliers and Mangalore Suppliers.

Airport and gift shops: Niche market, but a

promising one.

Small, eye-catching products in durable packages (to reduce spoilage, breaking of kernels) are key.

Details of one Super market

Details of one super market survey

Types of packaging :

making new flavours some failed badly but some were made our weekend parties.

Some of the quick recipes I tried.

Cashew Butter Ingredients • 2 cups unsalted roasted cashews • 2 to 3 tablespoons vegetable oil • 1/4 teaspoon salt • 1 teaspoon sugar, optional

What’s Cooking?

Method • In a food processor or blender, combine the nuts, 2 tablespoons of the oil, the salt, and the sugar, if desired. Process on high speed for 30 to 40 seconds.

• Scrape down the sides with a rubber spatula and process to desired smoothness, adding more oil, 1 teaspoon at a time, if a smoother butter is desired. Adjust the seasoning, to taste.

• Transfer to a bowl to use as a dip, spread, or in other recipes, or place in an airtight • container and refrigerate until ready to use.

Caramel Nut Bars Cooking? Really?

Yes! I got an opportunity in trying my hand on flavouring cashews. Cooking was one of the favourite part of this project as well. I tried

Ingredients(makes about 8 bars) • 1 cup of dry roasted, unsalted Cashew nuts • 1 cup of honey

• 1 tablespoon of unsalted butter • 1/4 teaspoon of salt • 2 pieces of parchment paper Method • Boil the honey, butter, and salt in a saucepan for at least 10 minutes, or until it gets very dark. The darker it is, the more the nut cluster will harden when it cools. If you want it to be more like brittle, bring close to burning.

• Cool the liquid for a minute or so and then add the nuts. Stir until all the nuts are coated. Place the nut mixture on a piece of parchment and then place the other piece of paper over it and use your hands or a flat surface to spread the nuts out evenly. Let it cool fully to harden.

• If you find it is a bit too sticky after fully cooled, put it in the refrigerator and eat it when cold.

well as any other seasonings). If you are adding more seasoning, • you may need a drop more oil. Spread nuts out apart on a fry pan. Fry it for about 5 minutes, or until the nuts begin to darken.

Raw nuts will take longer to roast than previously roasted nuts. Let it Cool and eat!

Flavours so far Flavoured cashews variety I tried.

• Caramel • Butter • Salted

Cashew Butter

Salted Nuts Ingredients • 1 cup of nuts • a few drops of oil • ( 1/4 teaspoon of oil / butter works too) • 1/4 teaspoon of sea salt (adjust to your liking) Method • Preheat fry pan.

• Coat the nuts with the salt and oil (as

• Keep it in the air tight container.

• Pepper • Chilly • Garlic • Lemon and salt • Chocolate

• Periperi • Sand roasted Flvoured Cashew Butter • Pepper butter • Garlic butter

Caramel Flavour

Brand Environment •Sathanai is SHG Started as PSTDP, in Pondicherry , Auroville.

•Talking to Laxmi who works there, brought out the insight of: Happy nuts. Nuts processed by worker who are happy doing it, in a happy place and want to spread that happiness Brand is the “name, term, design, symbol, or any other feature that identifies one seller’s product distinct from those of other sellers.”

Brands are used in business, marketing, and advertising. Initially, livestock branding was adopted to differentiate one person’s cattle from another’s by means of a distinctive symbol burned into the animal’s skin with a hot branding iron.

Brand

In Making

In accounting, a brand defined as an intangible asset is often the most valuable asset on a corporation’s balance sheet. Brand owners manage their brands carefully to create shareholder value, and brand valuation is an important management technique that ascribes a money value to a brand, and allows market investment to be managed to maximize shareholder value.

Although only acquired brands appear on a company’s balance sheet, the notion of putting a value on a brand forces marketing leaders to be focused on long term stewardship of the brand and managing for value

•Competition: Nut case by indigo, Fab India, Organic food brands •Brand would have a reputation for being outgoing and being innovative, Sophisticated, Happy.

•It will come up as high end cashew brand.

•It will be known for reason of happiness.

•It would have different flavors.

•It would be known for freshness of cashews.

•It would launch cashew butter in unique flavors.

•It will also be differentiated on the basis of transparency with the customers.

Size of my market:

The motivation to set up this social enterprise is to earn money for the sustainability and to make profit and create maximum women employment.

Possibility of reaching to all towns in India has

more transport facilities and easy to reach. My customer segment also belongs into the towns.

Considering Sensex count for 2011

Average Household size: 4.8 Consumption of cashew per house hold: 0.96 Kg / Year

Number of towns: 7,933 Number of households in towns: 2.7 million

Consumer size is: 27,00,00,000

Khushi Mehta

Occupation: (family business )Garment business Income : 50,000/Month She is single gujrathi girl from well to do business family. she has joined his family business after graduating from Fashion Designing school. She is practicing fashion designer for briadal and for that has to travel around . She is a food lover. Designer with liking for eye catchy things.

Shops at: Nature’s basket, Fab India, exclusive outlets Pain points: She likes nuts and she takes up indigo flight for nutcase .She is bored of buying repetitive flavors. Not many flavors available in the market for Nuts.

Needs: • Good munching’s ; healthier replacement for Chips or oily snacks • Have meetings at clients places while travelling needs quick Tasty bite Carrying it should have influence on others.

• The packet has more air than nuts.

officials visited households Cashew consumption in India per capita: 0.2Kg

Buyer’s Persona : 1

Buyer’s Persona : 2

Average cost of cashew/Kg: 950 Rs

Name: Khushi Mehta Age: 28 Location: Ahemdabad

Name: Shivani Chopra Age: 38 Location: Bangalore

Occupation: Business analyst Income : 1,00,000/Month She is Married Punjabi lady. She works with Accenture. Her husband works for Infosys as Manager. She has 2 kids one is 8 yrs and other one is 5yrs . Her mother in law looks after her kids when she is in office.

Shops at : Nature’s basket, Nilgiri’s, Food bazar, Big bazzar

in her hand with nuts.

Brand’s core idea:

its nutritional value. Nuts are as natural as the kids happiness

Provide Sustainable and profitable livelihood to women and eradicate poverty.

Shivani Chopra

Pain points: • Her kids are young and they need nutrition.

• Due to her work schedule she can not keep tab on what her kids eating for snacks.

Sometimes they serve by themselves which spoils the quality for rest of the servings.

Everytime they accomapny her to shop they want something to eat when they see something specially her daughter.

Needs: •Needs healthy food option for kids munching then chips and chocolates.

•Easy to use for kids. As far as away from plastic bags.

•Needs proper packed and attractive packaging. Her daughter doesnt eat nuts beacuse its packed in simple plastic which makes her think it is some grains not something to chew on. So her daughter replaces chocoalte

Brand’s Product Proposition: These nuts are made in happy place which enhances your happiness.

We produce fresh handmade nuts preserving all

Brand’s Physical space • Kidney shaped light yellow nut • Aroma • Sweet in taste and little soft as not

roasted till it looses all its nutrition value.

• Freshness

Brand’s Functional space • Cashew consumption

fun

Values relationships • Feeling of good Deeds with purchase of it.

• Patriotism ; Its also part of PTSLP

Brand Essence Happy nuts from happy women.

Brand as a Person Satish shah

Brand as a competitor Seek to establish ourselves and stand out from the shelves in mainstream retail outlets.

Name’s For Brand

The peculiarity will always make the brand stand out loud.

Brand As Communication Functional proposition: A healthy, tasty cashew-based snack Emotional Benefits: Every bite makes me feel happy

Self Expressive: Eating this brand of cashew makes me feel like I’m an altruist

Brand’s Emotional space

Brand Values

• These Nuts are made by positive minded or Happy people in a happy place.

• Best to make gathering and snack times

Core Values: Women Empowerment Joyous

Competitive proposition: The only cashew brand that offers happiness in terms of quality and the satisfaction of doing a good deed for women’s empowerment

Tone of voice Happy, joyous, energetic, sophisticated Informative Interactive

Brand Positioning “We cherish your happiness with ours ”

Desired Consumer’s reaction “ Its yum – for my mouth and my conscience!”

Short Listed Name After a lot of names and checking it with potential customers I freezed the Nutorious.

Nutorious Moodboard Logo Iterations Illsutration Style Final logo

Font for Logo Fonts for Brand Mood board for brand

Brand Color Pallet

Logo iterations

Old Branding of Unit

Logo iterations

Brand Fonts

Digital iteration and Final logo

Illustration style

Nutorious Happiness is Singing

Happiness is Falling in Love

Happiness is Singing

Happiness is Singing

Happiness is Falling in Love

• environmentally sound; • functions as a preparation and/or serving vessel; • sells itself; • identifies the product; and • supplies the required information.

Packaging and Labeling The way you package and label your product is important. First, packaging protects it from physical, chemical and microbiological invasion.

The package also provides a medium for presenting advertising messages and other important information to the consumer.

And finally, the package is one of the greatest influences on a consumer’s decision to try your product.

Packaging

The Ideal Food Package The perfect food package should have following criteria: • meets current legal requirements; • compatible with food; • protects against contamination from the environment; • controls the product’s environment; • resists mechanical damage; • sanitary; • tamper-proof; • attractive; • convenient; • inexpensive; • lightweight;

It’s important to note, however, that not one food package available today meets all of these criteria. It’s up to you to decide which are most important for your particular application and which can be compromised.

Packaging for Nutorious Packaging for brand always has influence on What kind of packaging is needed. What should be the core concept of packaging?

For brand Nutorious : The brand is all about happiness. Happiness comes with multiple things. Eye pleasing visual, Colorful, Sharing, chatting, Etc. For first packaging Nutorious has looked at playful look Interaction Sharing of snacks

Final Pacakaging I finalized on the hexagonal pack and triangular pack.

Business calculations After coming back from the field visit Mr. Jacob suggested to make business calculation. To evaluate what is processing capacity of the unit.

For calculations I considered few scenarios. The data from the field visit was used for making base for the calculation. Like equipment’s, capacity of each equipment, Time for processing, Labor, quantity of processing.

Scenarios for business calculations:

Business

Calculations

What is current processing rate with current labor availability?

What is possible rate as per equipment’s capacity?

What would be the requirements and profit loss equation if we have to process 10% Auroville’s cashew trees How much cashews should be processed to pay labors at least 250 INR per day?

Processing with 10% of Auroville’s Cashew tree’s area

359.0779068 186720.5115 1067 186725

Out Put InPut

kg/day Nuts/day kg/day Nuts/day

Scenario: 10% of Auroville Nuts/ day to be processed Steamer number 1067 Kg

Raw material Cost/Day

deshelling Shifts 1 4 cycles

number

peeling shifts

39

Labour 2

93362.5 Rs

Drying Shifts 40

Total Labor

number 2

shifts 6

number/shift 3

83

Income

179538.95 Rs

Labour cost/Day

10530 Rs

Electricity

74.04 Rs

Profit

75005.753 Rs

Rent

56.66 Rs

Profit/Month

1875143.8 Rs

Fire wood Loan Repayment Expense

30 rs 480 Rs 104533.2 Rs

%profit

42%

Current Day-wise status Number of labours

Day Processing hrs 14

Days in Month 25 Fixed Cost Monthly Sr No. 1 Water Charges 2 Day Rent 3 Insurance

Variable Cost Sr No. 1 Firewood (kg) 2 Transport (weekly) 3 Electricity 4 Labour 5 Raw Material 6 packaging

Selling price Rs/kg Daily Income Break even point Packs of 40gms per day

Current Month-wise Number of labours status

8

165

Day Processing hrs 14

Daily wage

of cashew 55 of cashew 200

4125

Per day required 1.25 500 3600 250 165 3

320

14 87.5 1375

1000 Total Kgs/ Day 55000 575 Kg required daily for BEP 1375 for 40gms Pack

Per day per/kg (Manufacturing Cost) Cost/Box of 40 gms.

400 100 144 3500 14437.5 4125 22706.5 412.8454545 16.51381818 55 23 Kg required daily for BEP for 1Kg Pack

250

3500

Monthly wage Total Labour cost 1375 6250 87500

Total Charges Monthly Total Charges Daily Total Charges Daily/kg 750 30 3400 136 100 4 4250 170 3.090909091

Unit cost

Total Labour cost

you did not have work in this unit: Worked in other cashew units Worked in other sectors Searched for work but did not get any Employment

Detailed Questionnaire: Employment-Unemployment How many years have you been working in the cashew sector Years How many years have you been working in the current working unit? (If less than one year, write the number of months, else approximate number of years) Years Months

Detailed Questionnaire

How many days did you work in this unit in the last year?

Days During the last one year did you work continuously or were there breaks in-between?

Yes No During the last one year what did you do when

Did not search for paid work/ attended Household duties Others (specify) Nature of employment Permanent Temporary/Casual Contract Trainee Others (specify) Is the work in this unit a part time or a full time work?

Full time Part time If the work in this unit is part time what other activity do you take up?

Work in other cashew units Work in other sectors Did not search for paid work/attended Household duties Others (specify)

Nature Of Work And Skill Requirement In which activity are you engaged in this unit?

Shelling Cutting Peeling Grading Packing Steaming Roasting Loading/unloading Drying Supervising Office work Others (specify) The activity that you are involved has which of the following aspects Fully manual labour Mainly manual labour but supported by machinery Mainly machinery but supported by manual labour How did you acquire the skill to do this activity?

Learned from workers who are Kins Learned from other workers Learned through a training programme No skill required Did the unit provide any skill training for the work you are doing?

Yes No If Yes, Please provide the details of the training

like place, duration, skill, method etc.?

Wages, Earnings And Benefits Nature of payment of wages Piece rate Time rate Salary Others (specify) How often the wages are paid Daily Weekly Fortnightly Monthly Others (specify)

No

Do you receive any of the following benefits or are you eligible for the following?

Yes No Which option PF Gratuity Earned Leave Maternity benefit Pension Bonus Amount of bonus received this year.

During the last one year, on an average, how much do you earn a day you work?

Are deductions made in your wages?

Yes No Reasons for which deductions are usually made Absence from work Lower output Lower quality/damage Others (specify) Do you think that the deductions are reasonable?

Yes

Conditions Of Work, Accidents And Redressal System How do you perform your task?

Sitting/squatting on the floor Sitting on chair/bench Standing Others (specify) Normal working time and hours of work From…………… To…………

Number of hours …………….

Do you work beyond normal working hours?

Yes No If Yes, are you paid for addition and working hours and rate at which such payments are made per hour?

Yes No Rate in /hr Number of rest intervals/breaks?

Number

Do you skip breaks/rest intervals Yes No. If Yes purpose for which you skip the rest interval?

Total duration of the rest intervals (in minutes) that you actually take?

Minutes

Whether the work space has the following?

Yes No Places: Proper ventilation Sufficient lighting

Sufficient toilets/latrines Sufficient space in resting room/place Drinking water Satisfactory washing/cleaning facilities Have you faced any of the following during the last one year in the workplace?

Yes No Any of following: Late payment of wages Had to work when sick Verbal abuse Physical abuse What are your problems as a cashew worker?

Low wages/earnings Delay in getting wages/payments Health problems Lack of job security Others (specify) Do there exist complaint redressal mechanism in the factory?

Yes No Do you think that complaint redressal mechanism is useful?

Yes No

Please give details of one or two cases were the redressal mechanisms were found either useful or not useful?

Did you face any accident in the work place (cashew unit) during the last five years?

Yes No Please give details about the accident and the support you received from the employer.

Days lost due to illness/accident during the last one year?

Did you get the wages for these days?

Yes, for all days Yes, but only for some days Did not get Has the unit in which you are working now remained closed other than regular holidays during the last two years?

Yes No If yes, the period for which it was closed and reasons cited for such closure?

Do you receive salary or compensation when the unit remains closed?

Yes No

Not applicable Please provide details regarding existing relations between the management and labour unions in your unit? How far such relations are contributing/obstructing the growth of the firm and employment?

Health And Health Care Do you have any health problem because of your work in the cashew sector?

Yes No What are the health problems you have?

Body pain Leg/hand/knee Pain Back pain Joint pain Neck pain Head ache Asthma/Bronchitis Cough Tuberculosis Skin disease Sneezing Arthritis Urinary Infection Allergy Other diseases (specify) In case of illness whom do you consult usually?

Doctor in the ESI dispensary/ Hospital Other government doctors

Private doctors Medical shop Others (specify)

25001 - 50000 50001 - ` 1 lakh Above ` 1 lakh

In case of hospitalization, where will you go for treatment?

Other government hospital Private hospital Others (specify)

Please give the details which led to the financial indebtedness and the problems arising from such situation like high interest rates?

Please specify the problems in accessing health care?

Indebtedness Are you financially indebted at present?

Yes No If yes, to whom all?

Banks Cooperatives Employer NBFCs Money lenders SHGs Friends/Relatives Shops Others (specify) Amount of financial indebtedness?

Less than Rs. 5000 5001 - 25000

from people around you. Every single person has some valuable inputs about your work and using that effectively can make a marked difference in your work.

“There are no mistakes – only lessons learned”

Reflections and

Learnings

This project has been a wonderful experience and I have seen myself grow as a visual communicator with business understanding through this process. I learnt so many minute details about Business like from how to start the business till how you have cost of each element your company produces. and also to do packaging completely helped me to apply my learnt in past to each aspect of my work.

There can be a social aspect to business was the biggest learning.

Dedicating three and a half months to a single project was a first for me and I experienced first-hand how time can fly by if you do not get daily targets. I am thankful that I learnt that early in the project so that I would not repeat the same mistake again in my dipping year project.

One of the other important things I learnt during the course of this project was how important and valuable peer feedback is. You can really learn a lot by just asking for feedback

One of the challenges I faced was to procure all the data from the client due to language barrier. I had to literally run after them to get the required information due to lack of time.

Every word spoken and time spent on the field was hope of new insight. They were really helpful, no doubt, I am very grateful that they could spare so much time for helping me to understand them and requirements for this project.

Golden circle was the most helpful theory.

With this knowledge any project henceforth would be easy to understand. It was glimpse of real world scenario. Where you have tight deadlines, lot of expectation and lowest possible budget.

The most gratifying part of the project was to see all the late nights and long hours result into something definite and productive. Putting so much effort into something and then witnessing the efforts turn into results that were even better than you expected is a different feeling altogether.

Report http://indianresearchjournals.com/pdf/ APJMMR/2013/March/11.pdf ICPA http://www.cashewindia.org/php/ cepcContents.php?CatID=29 http://dccd.gov.in/stat1a.htm#PROCESSING http://www.cec-india.org/archs/Impact-ofCashewnut-Industry-on-Women-Workers-inKanyakumari-1999.pdf http://articles.economictimes.indiatimes.com/ keyword/cashew

Bibliography

http://www.fao.org/inpho_archive/content/ documents/vlibrary/ac306e/ac306e04.htm Kitchens of india http://www.goldencashewproducts.in/cashewnut-shell-liquid-resin.htm http://articles.economictimes.indiatimes.com/ keyword/cashew http://indiancashews.in/cashews http://www.rawcashewnuts.com/gradeclassification.html http://www.tis-gdv.de/tis_e/ware/nuesse/ cashew/cashew.htm

Packaging http://ecommpoint.com/articles/fulfilment/ packaging/how-to-choose-the-right-parcelpackaging-materials-for-delivery-to-customer/ http://www.accessdata.fda.gov/scripts/cdrh/ cfdocs/cfcfr/CFRSearch.cfm?fr=101.12 http://www.demilked.com/creative-interestingpackaging-designs/ http://www.cashewnutmachines.com/cashewprocessing-chart.html http://www.aon.com/about-aon/intellectualcapital/attachments/risk-services/sustainability_ beyond_enterprise_risk_management.pdf Book: Business Model Canvas by Alexander Osterwalder & Yves Pigneur