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I N C L U S I V E G R O W T H
P roject Shakti is a rural distribution initiative o f Hindustan Unilever Limited (HUL) that targets small villages populated by less than 5,000 individuals. It is a unique
win-win initiative that catalyses rural affluence even as it benefits business.
Project Shakti benefits business by sign ificantly enhancing HUL's direct rural reach, and by enabling HUL's brands to communicate effectively
in media-dark regions. It also impacts society by creating liv e lihood opportun ities fo r underprivileged rural women. Project Shakti impacts society in two ways— the Shakti Entrepreneur programme creates livelihood oppor
tunities for underprivileged rural women.
The Shakti EntreDreneur (SE) programme recognises that while micro-credit plays a key role in alleviating poverty, its ability to do
so depends on the availability o f investment opportunities. Shakti contributes by creating profitable
micro-enterprise opportunities for rural women. Armed with m icrocredit, rural women become Shakti entrepreneurs: Direct-to-home dis-
Hindustan Unilever's Project Shakti shows how economic development can be brought about through micro enterprise
TO SUBSCRIBE TO INDIAN MANAGEMENT-SMS 'IMM' TO 57007 I N D I A N M A N A G E M E N T - F E B R U A R Y 2 0 1 2 87
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I N C L U S I V E G R O W T H
Through the' Shaktimaan initiative,
men in the Shakti Amma families
distribute HUL products to villages adjoining the
respective Shakti village
tributors in rural markets. This micro-enterprise offers low risks and high returns. The products distributed are some o f the country's most trusted
brands o f consumer goods, and include a range o f mass-market products especially relevant to
rural consumers.Moreover, HUL invests its resources in training
the entrepreneurs, helping them become confident,
business-sawy professionals capable o f running their own enterprise.The SE is also called as 'Shakti Amma' — 'Shakti' means 'power/empowered' and 'Amma' means 'mother' inTelugu the language spoken in Andhra Pradesh where Project Shakti was first piloted in 2000. Project Shakti has proved to be a great success for HUL and for rural impov
erished women in India. The project started in a few pilot villages in Andhra Pradesh in 2000. In 2002 it expanded to two states and by the end o f 2004 had grown to over 13,000 Shakti women entrepreneurs in 12 states. Today there are about45,000 Shakti Ammas across 15 states in India.
In 2010, HUL rolled out the Shaktiman in itiative through Project Shakti. Through the Shakti
maan initiative, men in the Shakti Amma families distribute HUL products to villages adjoining the respective Shakti village. Through the Geograph
ical In form ation System, v illages around the 'Shakti' families are tracked and based on this they are allotted five to six villages. They go to these villages and sell HUL products. The Shaktimaan have also been given bicycles to ensure smooth travelling between villages.
HUL now has over 26,000 Shaktimaans (through
SHAKTI ENTREPRENEUR EARN S
^ 700-^ 1,000A M ONTH
the Project Shakti network) across the country now. The revenue earned by the Shaktimaan further augments the household income o f the 'Shakti' family. Shaktimaans covering about five to six villages adjoining the Shakti village.The revenue earned by
the Shaktimaan further augments the household income o f the respective 'Shakti' family.
Through Project Shakti and Shaktimaan, HUL reaches over 100,000 villages across 15 states in India and over 3 million households every month. HUL works closely with various NGOs, banks and both state and local government departments, who recognise the potential for economic growth by encouraging women to become entrepreneurs.
On an average, a SE earns ?700-?l ,000 a month, and since most o f them live below the poverty line, this earning is significant, often doubling the household income. With the roll out o f Shaktimaan initiative, Shakti families have an opportunity to further augment their income. HUL is also evaluating various opportunities to further strengthen the income o f Shakti Ammas.
HUL has continuously endeavoured to augment
the income o f its Shakti Ammas. In 2011, HUL partnered with the State Bank o f India to bring banking services to low-income people in small Indian
villages through the Shakti Ammas.The Shakti Ammas are already trusted by local communities and make them a friendly and accessible way to promote access to banking in rural communities and thus promote financial inclusion. im
Contributed by Hindustan Unilever.
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