Rural Shores: Power the People

The essence of RURAL SHORES as a social enterprise will be - empowerment of all indigent
people in rural areas, with a human face. This two tier program will be a holistic program for
eradicating poverty and facilitation for access to needed resources with an asset based and
market creation approach.

Project Task

In India every year exhaustive amount of money as well as policies have been spent to reduce
poverty but Government as well as other development houses everywhere have by and large
failed to empower the rural, indigent people and to attack the root cause of poverty --- absence of
livelihood opportunities, education and their lack of access to resources. Progressing with the
painted ideology of Rural Shores we explore in part a holistic, asset-based and market creation
approach for creating ‘Public-Private Partnerships’ that will provide sustainable livelihoods and
resources outreach with an emphasis on health, energy and shelter security as primary
determinants of sustainable rural development.

We affirm a core empirical belief, that ‘the essence of sustainability is morality’. Rural Shores is
an idea for a social enterprise that will focus exclusively on rural India. But while that puts us in
a decidedly exclusive category, it doesn't begin to tell the complete story of Rural Shores team
and what makes us special. That's because this idea is as much about character as capabilities.
The philosophy that inspires us for creation and continues to inform our every move is what
enables us to develop truly innovative solutions. The Team understood the shortcomings of
existing solutions all too well to reach the people at the base of the pyramid and the difficulties
and frustrations it inspired. Rather than to accept these challenges, we have developed new and
better ways to reach the people at the helm of exclusion. To achieve the greatest possible
flexibility, setting up and progression of Rural Shores would be in a phase-wise approach and
that too with a well designed self-funding plan.

Project Task

PHASE1: Delineating Passages for Rural BoP Distribution

In recent years, we have been riveted as rural India has begun to fiercely negotiate its rightful
place in the world. Analysts predict that by 2020, for the first time in history, the number of
deprived households in rural India will be less than aspirers and seekers. This is just the effect.
The cause of this massive transformation lies in a rise in discretionary incomes from increasing
productivity and integration of rural markets. Today, the average rural Indian household spends
about 75% of its annual income on food, beverages and tobacco, 12% on energy needs, and
merely 2-3% on housing and health.

In the near future, rural populations, supported by development policies like NREGA, farm loan
waivers and enhanced rural infrastructure, are likely to spend proportionally much more on
discretionary items and new product categories like healthcare, education, transportation and
personal care. The compelling case of rural markets has lured large corporations and small and
medium enterprises (SMEs) alike. The trend is spreading rapidly across product categories.

Success in encouraging growth of rural Indian markets will depend extensively on continuous
innovation in alternate product distribution channels. Rural markets are ready for large scale
interventions. However, intent and ingenuity in these markets will count as much as execution.
‘Rural Shores as a social enterprise’ will rightfully create new avenues and win-win possibilities
in this market which will get a shot at the fortune lying in millions of India’s poorest households.

Structure and Framework

As clear from the above discussion that the ultimate paradigm which we seek is ‘Holistic Rural
Development’ in phase-wise manner, so layout of the nascent framework for first phase would be
most crucial screw in entire planning. We shall use the analogy of the Lonsdaleite hexagonal
structure which has 24 cells in its lattice structure – shown in the figure below as the starting
point to conceive the structure and framework of our painted strategy to get through rural BoP
market.

Here each cell represents the Gram Center (GC) for each individual village. In the initial phase
GC would be small shop, common meeting points, individual house operated by any individual
villager itself, so that maximum proportion of village community can be reached and information
should be available to villagers at all times. For the design, dissemination, effective control,
monitoring and progress of the processed Rural Shores Program - a nodal hub or Grameen access
center (GAC) with ware housing facility, will be eventually built and operated by representatives
of indigent community with field officer from Rural Shores. This GAC will act as the notional
center of gravity for the community across all 24 villages (GC). They will function to ensure that
all the ongoing holistic programs are implemented and operated in acceptable manner.

The size of a typical ‘target community’ for each GAC will therefore be between 75,000 to 1,
00,000. This innovative arrangement economizes on the number of Community centers (GC’s)
that may be needed to serve as distribution hot spots for customized rural products. Also in this
central hexagonal pattern, even those indigent people who live on the fringes – in the cusp region
between any two hexagonal divisions will have access to all the featured and marketed products
and services – without having travel to larger distances. These hexagonal structures will be
replicated in every progressive sub-stage to cover up entire state starting from a small block of
particular district with self generated resources.

Marketing

‘Rural Shores’ marketing field staff will conduct marketing sessions across all the GC’s to build
demand for products in BoP households. Team with diverse experience will develop a peer-to-
peer marketing strategy that will be creative, below-the-line marketing technique that are most
likely to succeed among peri-urban and rural consumers.
Market Entry and Product Feedback

Since the intent of our operations will be facilitation of rural consumers so surveys would be
conducted to collect data about its consumers to understand their products demand as well as to
understand which products to introduce into the market. The collected data along with
consumer’s feedback on products will be provided to companies to straterzise and suggest future
products for the market.

Distribution

‘Rural Shores’ will use its well networked GAC’s as its wholesale points to purchase products at
bulk from company’s directly to sell to BoP households. MoU’s will be filed across leading
service provider corporate houses to be responsible for filing orders and delivering products to
BoP households quickly and efficiently. These sales agents are the direct point of contact for the
manufacturer regarding product replacement issues, technical questions, or other sales service
requirements. Also they will train our sales agent across GAC’s to service consumer needs
related to the products we sell.Inventory manager in each wholesale point will be placed who
will be responsible to tracks sales and inventory and provides reports to the product company
every quarter.

Linkages

‘Rural Shores’ will work with various channel partners on the ground to better reach households
– this will includes microfinance, self-help groups, farmers, dairy, ASHA health workers, and
anganwadi school teachers. The BoP population is characterized by unmet basic needs (access to
basic healthcare, water and sanitation, financial services, education, etc.) and a so-called “BoP-
penalty” that results in higher prices for BoP customers than their wealthier counterparts for
basic products and services. The “BoP-penalty” is primarily an outcome of local monopolies,
inadequate access, poor distribution and strong traditional intermediaries. Through this low cost,
direct delivery rural supply chain network, Rural Shores has a vision to create significant cost
and time savings for villagers, and to provide an effective channel for enterprises to sell products
and services. We have passel that on the following drawn lines Rural Shores would be fastest
growing network and continuing with steady and cautious steps, could well become the world's
largest rural distribution network.

Project Task

Phase2: Reviving Rural Economy

Backpacking through India, Rural Shores Team does realize that rural farmers and artisans suffer
most because of the lack of direct access to markets. More often than not, the products exchange
hands of three or four middlemen who pocket all the profits. As the supply of such village based
products is more than the demand, the farmers and artisans are left with a raw deal. Rural Shores
PHASE 2 will come into being with the help of seed capital provided by revolving fund
generated with PHASE 1.
Farmers in India are getting approximately only 40% of consumer price. i.e. if a farmer sells a
vegetable at 8/-per kg, the consumers buy it at minimum of 20/- in the market. So the rest 60%
amount is consumed by the long supply chain. We have a plan to minimize the supply chain as:

Farmer --> Rural Shores --> Consumer.

Thus we reduce the pro-harvest losses and fragmentation of the income which should remain
with the farmers. The Project Action Plan below discusses how we execute our strategy. Going
over the layout framework for our first phase, a second wave reversing the direction of the trade
will be established. The GC’s strengthened in Phase 1 will now be extended to also take up role
of delivery centers for local farm produce where farmers will deliver their products getting
instant and competitive cash. For every hexagon all the GC’s will be covered up to carry farm
products to destined GAC which will now serve as linkage to prior linked customers.

Also Rural Shores will set up its small rural industries at some selected GAC’s in pilot basis
based on local raw materials quality and availability. These small set ups will be mostly
concerned with the processing of agricultural produce. Initially the vision will be started with
demand-based industries for processing semi-finished agricultural products or aim at meeting
local consumer demand for finished agricultural products. Mere reliance on local markets is,
however, difficult, because local markets tend to be small and the residing population usually has
a low purchasing power. Therefore, the marketing of the products will be in urban, national or
global markets. Also options for permanent and promising type of arrangements like linkages
between big urban agri-business companies, retail outlet chains and Rural Shores will be
explored.

As Market reach and skills grows in the initial set of GAC’s, there will be second wave of
outsourcing with Rural Shores subcontracting to other rural companies set up by and for the
indigent communities in the remaining GAC’s. As it is understood that Infrastructure
development that lowers costs constitutes a key ingredient in the success of these arrangements
so a sum from the profit of Phase 2 will be dedicated to these services. This type of
subcontracting arrangement appears to have a number of strong advantages both for Rural
Shores and Rural entrepreneurs. It will not only transfers skills to small firms, creates access to
dynamic markets, but also in some cases will provide credit. The morality will be to empower
rural population by providing livelihood opportunities and choices for earning and living a better
life. Business links established by Rural Shores will help suppliers to reduce their capital needs
as well as cutting down on search and start-up times by targeting production to an already
identified market.

Even with the most successful rural development programs, it is unlikely that agriculture will be
able to provide adequate income and employment to the entire rural population. The options
which will be focused by rural shores in tier 2 program would also be to absorb rural labour are
off-farm employment. We fully believe that “People want to help themselves”. “They don’t want
to receive hand outs. They can take care of their health, education and other needs, only if they
get a sustainable source of income. And they will work hard to deserve the income.”

The Rural Haats will be started in the already set up hexagon networks with IT enabled
community centers by training people in making various products using the local resources.
Separate Channels will be created to source these authentic handmade village craft products
directly from artisan groups spread all over hexagons and will be marketed in urban India.
To keep its people motivated, Rural Shores will facilitate and let the producer groups to
participate in their exhibitions. Participation in these exhibitions will be a great learning
experience for them in terms of interacting with new people, learning about consumer behavior
and getting a taste of the urban life.

The essence of RURAL SHORES as a social enterprise will be - empowerment of all indigent
people in rural areas, with a human face. This two tier program will be a holistic program for
eradicating poverty and facilitation for access to needed resources with an asset based and
market creation approach. The innovative hexagonal modular structure has been conceived for
our operations to economize on the number of physical assets that need to be built in order to
reach the indigent people, while providing the villagers with easy access to market based
products and knowledge based services that will take them out of poverty and progress toward
development.

The present value cost of initiating this social enterprise on the designed and destined frame
work will be 25, 00,000. We are a team of firm believers that ‘leadership lies in making yourself
redundant in the processes’, and we are prepared to place our science at the service of society.

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