Sabras: Empowering Salt Workers in Gujaratindiagovernance.gov.in/files/gkc_oneworld_sabras.pdf · the salt producer’s community and the urgent need for their economic empowerment

[email protected]

July 2011

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public GrievancesMinistry of Personnel, Public Grievances and Pensions, Government of Indiahttp://indiagovernance.gov.in/

Researched and Documented by

OneWorld Foundation India

Sabras: Empowering Salt Workers in Gujarat

TRANSPARENCY AND

Governance Knowledge CentrePromoted by Department of Administrative Reforms and Public Grievances

Ministry of Personnel, Public Grievances and Pensions

Government of India

Table of Contents Executive Summary ................................

Background ................................

Objective ................................................................

Working Design ................................

Ownership of SABRAS................................

Company composition

SABRAS Supply chain ................................

Company finances ................................

Methodology ................................

Key Stakeholders................................

Lessons learned ................................

Creating an empowered community

Establishing a brand through institutional partnerships

Utilizing environment friendly technology

Developing a successful business model

References ................................

Appendix A Interview Questionnaire

RANSPARENCY AND ACCOUNTABILITY

Governance Knowledge Centre Promoted by Department of Administrative Reforms and Public Grievances


Researched and documented by


Sabras: Empowering salt workers

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ny composition ................................................................................................

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Creating an empowered community ................................................................

Establishing a brand through institutional partnerships ................................

Utilizing environment friendly technology ................................................................

Developing a successful business model ................................................................

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Interview Questionnaire ................................................................

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Case Study Livelihoods Security

Sabras: Empowering salt workers in Gujarat

July 2011

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Government of India

Executive SummaryWith an annual export of 2.25 million tonnes, India is among the leading salt producing

countries in the world.1 Majority of this salt is manufactured in the Little Rann of Kutch salt

pans of Gujarat. The salt workers, locally known as Agariyas, produce sa

year in a harsh coastal and desert environment. They are also devoid of basic amenities such as

drinking water, schools and hospitals. Furthermore, these salt workers are paid low wages,

suffer heavy exploitation through traditional m

percent of the total salt value in the market.

To improve the quality of life of Agariyas

Saline Area Vitalization Enterprise Ltd. (SAVE) a techno

Gujarat has established a social enterprise called SABRAS Processing and Marketing Pvt. Ltd.

SABRAS provides procurement, processing and marketing services to small scale salt workers

in Little Rann of Kutch.

In SABRAS business model, salt workers are shareholders of the company and produce salt, the

management team ensures proper access to market, credit and techn

organised such that SABRAS directly buys salt from the workers at higher than market price,

and then sells it in bulk to processors and network of distributors.

Additionally, to improve productivity, SABRAS provides environment frie

effective solar water pumps to reduce the dependence of salt workers on inefficient diesel

pumps for salt production.

This document aims to highlight the working design and impact of the SABRAS model thus

far. It also touches upon the compa

model like SABRAS should be replicated elsewhere.

1 Bay of Bengal Programme, 2011-07-19, http://www.bobpigo.org/bbn/march_06/Page%2037







Summary With an annual export of 2.25 million tonnes, India is among the leading salt producing

Majority of this salt is manufactured in the Little Rann of Kutch salt

pans of Gujarat. The salt workers, locally known as Agariyas, produce sa



suffer heavy exploitation through traditional middlemen and traders, and earn only 1 to 8

percent of the total salt value in the market.

To improve the quality of life of Agariyas and achieve greater efficiency in salt production,

Saline Area Vitalization Enterprise Ltd. (SAVE) a techno-marketing service organisation in


urement, processing and marketing services to small scale salt workers


management team ensures proper access to market, credit and technology. The process is


and then sells it in bulk to processors and network of distributors.

Additionally, to improve productivity, SABRAS provides environment frie



far. It also touches upon the companys future plans with the aim that a scalable business

model like SABRAS should be replicated elsewhere.

http://www.bobpigo.org/bbn/march_06/Page%2037-40.pdf

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With an annual export of 2.25 million tonnes, India is among the leading salt producing

Majority of this salt is manufactured in the Little Rann of Kutch salt

pans of Gujarat. The salt workers, locally known as Agariyas, produce salt for eight months a



iddlemen and traders, and earn only 1 to 8

and achieve greater efficiency in salt production,

marketing service organisation in


urement, processing and marketing services to small scale salt workers


ology. The process is


Additionally, to improve productivity, SABRAS provides environment friendly and cost



nys future plans with the aim that a scalable business

TRANSPARENCY AND



Government of India

Background India is currently the third largest salt

salt in the country is produced in Gujar

Agariyas, are engaged in salt production activity in Little Rann of Kutch (LRK).

Agariyas work in highly exploitative and

subhuman conditions; long term exposure

to the salt and hostile desert environment

makes them extremely susceptible to

various health hazards. Conditions are

further worsened by their lack of access to

basic amenities like drinking water, shelter,

protective clothing, education and

healthcare.

Economically also Agariyas do not receive

their fair share of profits. During the salt

2 Bay of Bengal Programme, 2011-07-19, http://www.bobpigo.org/bbn/march_06/Page%2037

Figure 2: Salt Workers in Kutch

Source: SABRAS







India is currently the third largest salt producing country in the world, and 70 percent of the

salt in the country is produced in Gujarat.2 About 70,000 small salt producers, locally known as


work in highly exploitative and

subhuman conditions; long term exposure

to the salt and hostile desert environment

makes them extremely susceptible to

various health hazards. Conditions are

further worsened by their lack of access to

drinking water, shelter,

protective clothing, education and

Economically also Agariyas do not receive

their fair share of profits. During the salt

production season from October to April,

Agariyas borrow money from traders and

money lenders to operate and maintain the

diesel pumps used in the salt production

process. They repay the loan with the salt

they produce. Due to this, reason, the

Agariyas are left with a very small amount

of salt, which they sell to the traders at a

very low price of around

ton. This salt goes on to be sold at

per metric ton in the market. The salt

workers get only 1-8 percent of the total

profit made in the salt supply chain.

http://www.bobpigo.org/bbn/march_06/Page%2037-40.pdf

Figure 1: Little Rann of Kutch

Source: Google Images

LR K

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producing country in the world, and 70 percent of the

small salt producers, locally known as


production season from October to April,

Agariyas borrow money from traders and

o operate and maintain the

diesel pumps used in the salt production

process. They repay the loan with the salt

they produce. Due to this, reason, the

Agariyas are left with a very small amount

of salt, which they sell to the traders at a

around Rs.80 per metric

his salt goes on to be sold at Rs. 7,200

per metric ton in the market. The salt

8 percent of the total

K

TRANSPARENCY AND



Government of India

While the government agencies and NGOs have helped the salt workers, these efforts have

largely concentrated on providing basic amenities, and have failed to address the economic

hardships faced by them.

Saline Area Vitalization Enterprise Ltd. (SAVE), an Ahmedabad based technical and marketing

service provider, conducted a study on the condition

districts of Gujarat in 2005. The study highlighted the extent of the economic problems faced by

the salt producers community and the urgent need for their economic empowerment. As a

response to the findings of the study, SAVE created SABRAS Processing and Marketing Pvt.

Ltd. (SPML), in joint ownership with salt workers, in 2007, to provide technical and marketing

assistance to the salt workers so that they make profits that are proportionate to the hard work

and labour that they put in.

SABRAS currently operates in ten villages of Halvad and Dhrangadhara talukas of

Surendranagar district in Gujarat.

of Rs. 120 per metric ton, processes the salt and then sells it to various salt distributors.

SABRAS also provides technological assistance to the Agariyas by facilitating replacement of

the diesel pumps with innovative solar pumps, which increases the efficiency and productivity

of the salt workers.

Objective SABRAS seeks to correct the exploitative market practices in Indias salt industry. It aims to:

improve the quality of life of the Aga

increase Agariyas access to institutional credit, markets and technology

offer fair trade prices in the procurement of salt and create an access to distribution

channels.

Working Design In the SABRAS model, Agariyas

management and technical expertise and experience to provide the Agariyas with access to

market, credit and technology

OWNERSHIP OF SABRAS

SABRAS was established as a producers owned, producers

controlled and professionally managed for

The company at present has an equity of Rs. 5.5 lakhs, of








ly concentrated on providing basic amenities, and have failed to address the economic


service provider, conducted a study on the condition of the salt producer community in several



he study, SAVE created SABRAS Processing and Marketing Pvt.



operates in ten villages of Halvad and Dhrangadhara talukas of

Surendranagar district in Gujarat. It procures salt from the salt workers at an approximate price



esel pumps with innovative solar pumps, which increases the efficiency and productivity

SABRAS seeks to correct the exploitative market practices in Indias salt industry. It aims to:

improve the quality of life of the Agariyas



In the SABRAS model, Agariyas use their skills to provide the salt while SAVE uses its


market, credit and technology.

SABRAS

SABRAS was established as a producers owned, producers

controlled and professionally managed for-profit company.

The company at present has an equity of Rs. 5.5 lakhs, of 14%38%

Shareholders of SABRAS

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ly concentrated on providing basic amenities, and have failed to address the economic


of the salt producer community in several



he study, SAVE created SABRAS Processing and Marketing Pvt.



operates in ten villages of Halvad and Dhrangadhara talukas of

It procures salt from the salt workers at an approximate price



esel pumps with innovative solar pumps, which increases the efficiency and productivity

SABRAS seeks to correct the exploitative market practices in Indias salt industry. It aims to:



use their skills to provide the salt while SAVE uses its


14%

48%

Shareholders of SABRAS

Agariyas Share

Promoter's

(SAVE) Share

Private Equity

TRANSPARENCY AND



Government of India

which 14 percent is held by 28 small salt producers, 48 percent by SAVE while the rem

percent is held as private equity. By making salt workers shareholders of the company,

SABRAS is providing them with the opportunity to become owners and increase their profits.

The salt workers paid for their share in the form of salt. As shareh

the risks and profits that the company makes.

COMPANY COMPOSITION

The Board of Directors includes two representatives of the agariyas union .i.e. the

Hitrakshak Samuh and one representative of SAVE ltd. The board col

prices, quality of the salt, profit sharing and technical improvements.

SAL

Figure 3: Traditional







which 14 percent is held by 28 small salt producers, 48 percent by SAVE while the rem



The salt workers paid for their share in the form of salt. As shareholders, the salt workers share

the risks and profits that the company makes.

The Board of Directors includes two representatives of the agariyas union .i.e. the

and one representative of SAVE ltd. The board collectively takes decision on

prices, quality of the salt, profit sharing and technical improvements.

Figure 4: SABRAS Intervention Model

Figure 3: Traditional Salt Supply Chain

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which 14 percent is held by 28 small salt producers, 48 percent by SAVE while the remaining 38



olders, the salt workers share

The Board of Directors includes two representatives of the agariyas union .i.e. the Agariya

lectively takes decision on

TRANSPARENCY AND



Government of India

SABRAS SUPPLY CHAIN

To facilitate better access to

undertakes the following activities:

1) Procuring, transporting, processing,

packaging and marketing the salt produced

by the salt workers: SABRAS directly

procures salt from the salt workers at a price.

56 percent higher than the price offered by

the local traders. The salt is then sold in bulk

to processors and wholesalers, who further

supply it for industrial usage or for sale

through retail.

2) Provision of technical inputs to the salt workers

the salt workers in enhancing overall productivity. The salt workers are provided enhanced

access to credit for maintaining their diesel pumps, and are al

traditional pumps with efficient solar pumps. SABRAS has already begun testing these

solar pumps on a pilot basis.

At present, there are two solar pumps being used by the salt workers with the help of

National Bank for Agriculture and Rural Development

investment for solar pumps is high, in the long term these turn out to be more cost efficient

than the diesel pumps. Salt workers at present, can rent these solar water pumps from

SABRAS. Gradually over a period of five to seven years they are expected to pay periodic

payments either in the form of salt or cash for these pumps, after the completion of this

payment the solar water pumps will belong to the salt workers. The maintenance of the

solar pumps is handled by the professionals of SABRAS who provide inputs to the salt

workers on efficiently using the pumps and give them technical support.

3) Other Activities: SABRAS has also established mobile shelters for the salt workers and their

families to stay in the desert during the eight month production season. Salt workers have

also been provided with multipurpose community shelters for meetings, entertainment etc.

A Community Resource Centre (CRC) has been set up at village Jogad. The centre is used







UPPLY CHAIN

To facilitate better access to market, SABRAS

undertakes the following activities:

Procuring, transporting, processing,

packaging and marketing the salt produced

: SABRAS directly

procures salt from the salt workers at a price.

56 percent higher than the price offered by

the local traders. The salt is then sold in bulk

to processors and wholesalers, who further

supply it for industrial usage or for sale

Provision of technical inputs to the salt workers: SABRAS provides technical assistance to


access to credit for maintaining their diesel pumps, and are also encouraged to replace the


solar pumps on a pilot basis.


ulture and Rural Development (NABARD). Although the initial



ly over a period of five to seven years they are expected to pay periodic



pumps is handled by the professionals of SABRAS who provide inputs to the salt


: SABRAS has also established mobile shelters for the salt workers and their

o stay in the desert during the eight month production season. Salt workers have



Figure 5: Solar Panels for the Water Pumps

Source: SABRAS

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: SABRAS provides technical assistance to


so encouraged to replace the



NABARD). Although the initial



ly over a period of five to seven years they are expected to pay periodic



pumps is handled by the professionals of SABRAS who provide inputs to the salt


: SABRAS has also established mobile shelters for the salt workers and their

o stay in the desert during the eight month production season. Salt workers have



Figure 5: Solar Panels for the Water Pumps

TRANSPARENCY AND



Government of India

for research, development and training the salt workers to better manage the salt

production process and their profits.

COMPANY FINANCES

SABRAS began with an initial capital of Rs. 100,000 out of which Rs

the salt workers and 26,000 by SAVE. SABRAS also received a

US based non profit organization First Light ventures. Currently the companys value is 5.5

lakhs. NABARD, local banks and the Government o

production and purchase of solar pumps.

On an average in every salt production season salt workers produce 600 metric tonnes of salt.

Out of this total production 400 metric tonnes is used for repayment of credit

pumps) or as rent for the solar pumps. The remaining 200 metric tonnes is procured at the rate

of approximately Rs. 120 per metric ton. The salt is finally sold in the market at Rs. 7200 per

metric ton.

Methodology Working with the objective of identifying best practices in governance in India for the purpose

of further replication, the Governance Knowledge Centre (GKC) research team conducts

extensive research to locate initiatives that contribute towards the betterment of public service

delivery. SABRAS is transforming the livelihood conditions of the salt producing community in

select districts of Gujarat by committing to fair trade practices, linking salt producers with

markets and reducing their costs with solar technology. In this ma

criteria of an innovative, sustainable and replicable initiative.

Having established the SABRAS model as a best practice, the team then conducted thorough

secondary research using web sources to gather a detailed understanding of how the initiative

works and identify its strengths. The next step was to identify the key s

schedule interviews with them to get a deeper insight into the operation and impact of the

initiative.

KEY STAKEHOLDERS

Saline Area Vitalization Enterprise Ltd. (SAVE)

particularly to primary producers with limited assets and located along the coast of Gujarat.

Agariya Hit Rakshak Sangh,

partner of SABRAS and represents







development and training the salt workers to better manage the salt

production process and their profits.

SABRAS began with an initial capital of Rs. 100,000 out of which Rs. 74,000 was provided by

the salt workers and 26,000 by SAVE. SABRAS also received a Rs. 3,330,000


lakhs. NABARD, local banks and the Government of Gujarat provide credit linkages for salt

production and purchase of solar pumps.


Out of this total production 400 metric tonnes is used for repayment of credit



tive of identifying best practices in governance in India for the purpose





markets and reducing their costs with solar technology. In this manner it fits the best practice

criteria of an innovative, sustainable and replicable initiative.



works and identify its strengths. The next step was to identify the key s


Saline Area Vitalization Enterprise Ltd. (SAVE) provides enterprise development services


a union of salt producers with 4,500 members is a scaling up

partner of SABRAS and represents the voice of the salt workers.

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development and training the salt workers to better manage the salt

. 74,000 was provided by

Rs. 3,330,000 investment from a


f Gujarat provide credit linkages for salt


Out of this total production 400 metric tonnes is used for repayment of credit (taken for diesel



tive of identifying best practices in governance in India for the purpose





nner it fits the best practice



works and identify its strengths. The next step was to identify the key stakeholders and


provides enterprise development services


a union of salt producers with 4,500 members is a scaling up

TRANSPARENCY AND



Government of India

Dasra, a social enterprise incubator,

assistance.

Central Salt & Marine Chemicals Research Institute,

provides strategic development and technical consulting advice for salt and by

Gujarat Livelihood Promotion Company

provides working capital to groups promoting

which has entered into a memorandum of understanding(MoU) with SABRAS in 2011 to work

together for improving the livelihoods of the salt workers.

National Bank for Agriculture and Rural Development (NABARD)

bank mandated to support economic activities in rural areas and promote integrated and

sustainable rural development under its Rural Innovation Fund program, supported SABRAS

in completing a pilot program for two solar powered water pump

First Light Ventures, a US based social venture fund, which invested Rs. 3,330,000 in SABRAS

in 2010.

Idiom Design and Consulting

strategy for SABRAS.

Individuals: Twenty eight salt workers

Lessons learned


SABRAS is empowering the salt workers from just being producers to owning a company and

participating in the entire supply chain. The salt workers are no longer dependent on the

traders for selling the salt. Instead, SABRAS, the organisation, procures salt

prevailing market prices and also provides workers with solar pumps to increase efficiency.

SABRAS has helped in reducing the reliance of the salt workers on middlemen and also

increasing their income. It is helping them operate in a cost a

manner.


SABRAS successfully leverages the institutional partnerships to enhance its business model.

Strong partnerships with the government and private players are helpin

brand name, which in turn is strengthening its capacity to assist the salt workers. These







Dasra, a social enterprise incubator, supports SABRAS through on-going in

Central Salt & Marine Chemicals Research Institute, a part of the Government of India,

provides strategic development and technical consulting advice for salt and by

Gujarat Livelihood Promotion Company, a company set up by the Government of Gujarat,

provides working capital to groups promoting better livelihood options for the rural poor,


together for improving the livelihoods of the salt workers.

National Bank for Agriculture and Rural Development (NABARD) an Indian development



in completing a pilot program for two solar powered water pumps.

a US based social venture fund, which invested Rs. 3,330,000 in SABRAS

Idiom Design and Consulting, a design firm is providing assistance in developing a brand

Twenty eight salt workers to date have purchased equity in the company.




traders for selling the salt. Instead, SABRAS, the organisation, procures salt



increasing their income. It is helping them operate in a cost and technologically effective



Strong partnerships with the government and private players are helping SABRAS build a


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going in-kind technical

a part of the Government of India,

provides strategic development and technical consulting advice for salt and by-products.

, a company set up by the Government of Gujarat,

better livelihood options for the rural poor,


Indian development



a US based social venture fund, which invested Rs. 3,330,000 in SABRAS

, a design firm is providing assistance in developing a brand

to date have purchased equity in the company.



traders for selling the salt. Instead, SABRAS, the organisation, procures salt at higher than



nd technologically effective


g SABRAS build a


TRANSPARENCY AND



Government of India

partnerships provide SABRAS with the necessary technical knowhow as well as financial

support, which otherwise is difficult for individual salt worke


SABRAS is offering an innovative solar technology solution to replace the inefficient and costly

diesel powered pumps. This technology will not only reduce harmful carbon emissions but also

drastically reduce production costs in the long run and improve the efficiency of the salt

production process. In addition to higher revenues, the salt workers now have more time on

their hand as they are not required to constantly monitor the functioning of the solar pumps,

like they had to in the case of the diesel pumps.

Table 1: Cost Comparison Between Diesel and solar water pumps

Though the short term investment for a solar pump is high (approximately Rs

long run it is more cost effective. Currently SABRAS has installed two solar pumps. By the end

of 2011 it aims to set up 25 pumps with financial assistance from banks. SABRAS is working on

a low cost, solar concentrator technology that c

restricted to water pumps.


SABRAS is successfully accomplishing its business objectives as well as creating a social impact

on the lives of the salt workers in Little Rann

improve livelihoods. To date, it has procured 22,000 tons of salt from over 39 salt workers and

expanded its marketing network from 4 to 13 commercial companies. Initially having faced

problems of quality, transportation and storage, the company could not meet its economies of

scale but currently has earned a profit of approximately Rs. 200,000 lakhs. Gradually the

processes involved are getting streamlined, as SABRAS plans to enter into more partnerships,

attract investors and develop innovative and efficient technology.

Pump

Type

Life of

Pump

Cost

Diesel 10 years 25,000

Solar 15 years 2,00,000








support, which otherwise is difficult for individual salt workers.




production costs in the long run and improve the efficiency of the salt



like they had to in the case of the diesel pumps.

: Cost Comparison Between Diesel and solar water pumps

Though the short term investment for a solar pump is high (approximately Rs



a low cost, solar concentrator technology that can be used for other purposes and not just be



on the lives of the salt workers in Little Rann. It is combining commerce with a cause to



rtation and storage, the company could not meet its economies of



investors and develop innovative and efficient technology.

Cost Annual

Maintenance

Annual

Fuel costs

25,000 10,000 60,000

2,00,000 15,000 -

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production costs in the long run and improve the efficiency of the salt



Though the short term investment for a solar pump is high (approximately Rs. 300,000) in the



an be used for other purposes and not just be


. It is combining commerce with a cause to



rtation and storage, the company could not meet its economies of



Savings over

Life of pump

-

8,25,000

TRANSPARENCY AND



Government of India

In the future, SABRAS is looking to expand its operations into the processing of salt. SABRAS is

in discussion with a leading retailer in India to undertake a new co

SABRAS brand of edible salt that would be sold directly to retailers. On the side lines, SABRAS

also hopes to develop a local brand of SABRAS salt for circulation in villages and aims to

generate additional revenue through the sale of salt by

profit margins are expected to increase, ensuring the long term sustainability of SABRAS.

Research was carried out by OneWorld Foundation India (OWFI), Governance Knowledge Centre (GKC) team.

Documentation was created by Research Associate,

For further information, please contact

References Ashoka Changemakers, http://www.changemakers.com/fr/node/105540/images

2011

Ashoka Changemakers, http://www.changemakers.com/g20media/socia

2011

Ashoka Changemakers,

capital-putting,-sme-investments

Bay of Bengal Programme,

19th 2011

Wind & Solar: Save the world energy,

July 19th 2011

Think Change India,

indian-dream/ July 19th 2011








in discussion with a leading retailer in India to undertake a new co-branding effort for a

rand of edible salt that would be sold directly to retailers. On the side lines, SABRAS


generate additional revenue through the sale of salt by-products like potash.


Research was carried out by OneWorld Foundation India (OWFI), Governance Knowledge Centre (GKC) team.

Documentation was created by Research Associate, Sapna Kedia

For further information, please contact Naimur Rehman, Director, OWFI, at [email protected]

http://www.changemakers.com/fr/node/105540/images

http://www.changemakers.com/g20media/socia

Ashoka Changemakers, http://www.changemakers.com/SME-Finance/entries/village

investments-hands, July 18th 2011

Bay of Bengal Programme, http://www.bobpigo.org/bbn/march_06/Page%2037

Wind & Solar: Save the world energy, http://thesolarpowered.com/cost

Think Change India, http://www.thinkchangeindia.org/2008/05/08/the

July 19th 2011

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branding effort for a

rand of edible salt that would be sold directly to retailers. On the side lines, SABRAS


products like potash. In this manner


Research was carried out by OneWorld Foundation India (OWFI), Governance Knowledge Centre (GKC) team. Sapna Kedia

[email protected]

http://www.changemakers.com/fr/node/105540/images, July 18th

http://www.changemakers.com/g20media/socialfinance, July 18th

Finance/entries/village-

http://www.bobpigo.org/bbn/march_06/Page%2037-40.pdf, July

http://thesolarpowered.com/cost-of-solar-powered/,

http://www.thinkchangeindia.org/2008/05/08/the-makings-of-the-

TRANSPARENCY AND



Government of India

Appendix A Interview QuestionnaireBackground

1. SAVE conducted a study to understand the conditions of the salt workers. What

motivated SAVE to undertake the study? When was this study held?

2. SAVE formed SABRAS Pvt. Ltd to end the exploitation faced by salt workers, provide

them with access to instituti

a fair share in the final profits made.

a) What other objectives does SABRAS have?

b) What was the condition of the salt workers prior to SABRASs intervention? How

did they get access to financial as

c) How did SABRAS approach the salt workers and convince them about its purpose

of contributing towards the betterment of their livelihood?

Stakeholders

3. The key stakeholders in the project are: SAVE, Agariya Hit Rakshak Sangh, DASRA,

Central Salt & Marine Chemicals Research Institute, Gujarat livelihood Promotion

Company, NABARD, First Light Ventures, Idiom design and Consulting and Individual

salt workers who have purchased equity in the company.

a) Can you explain to us the role and res

stakeholders?

b) Are there any other stakeholders?

c) The above list has names of government agencies ( NABARD, Gujarat Livelihood

Promotion Company etc). How did SABRAS approach these agencies? Was there a

particular reason for it?

Program implementation

COMPANY ACTIVITIES

4. As we understand, SABRAS was established in 2007 and began with a pilot phase with

NABARDs assistance. What activities did the pilot phase entail? What was the duration

of the pilot?

5. SABRASs major activities include

a) Procurement

b) Transportation

c) Processing

d) Packaging of salt







Interview Questionnaire

SAVE conducted a study to understand the conditions of the salt workers. What


SAVE formed SABRAS Pvt. Ltd to end the exploitation faced by salt workers, provide

them with access to institutional credit, markets and technology and ensure that they get

a fair share in the final profits made.

What other objectives does SABRAS have?

What was the condition of the salt workers prior to SABRASs intervention? How

did they get access to financial assistance and markets?

How did SABRAS approach the salt workers and convince them about its purpose

of contributing towards the betterment of their livelihood?

The key stakeholders in the project are: SAVE, Agariya Hit Rakshak Sangh, DASRA,



salt workers who have purchased equity in the company.

Can you explain to us the role and responsibilities of each of one of the above

Are there any other stakeholders?

The above list has names of government agencies ( NABARD, Gujarat Livelihood


reason for it?

As we understand, SABRAS was established in 2007 and began with a pilot phase with


activities include-

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SAVE conducted a study to understand the conditions of the salt workers. What


SAVE formed SABRAS Pvt. Ltd to end the exploitation faced by salt workers, provide

onal credit, markets and technology and ensure that they get

What was the condition of the salt workers prior to SABRASs intervention? How

How did SABRAS approach the salt workers and convince them about its purpose

The key stakeholders in the project are: SAVE, Agariya Hit Rakshak Sangh, DASRA,



ponsibilities of each of one of the above

The above list has names of government agencies ( NABARD, Gujarat Livelihood


As we understand, SABRAS was established in 2007 and began with a pilot phase with


TRANSPARENCY AND



Government of India

e) Marketing and approaching appropriate distribution channels: wholesale, retail?

f) Knowledge services

CAN YOU EXPLAIN HOW E

6. SABRAS has also set up mobile shelters for families and multipurpose community

shelters. Can you explain the purpose of these and who is responsible for their

maintenance?

7. SABRAS has also established a Community Resource Centre (CRC

a) What is the purpose of the CRC?

b) To what extent is this CRC being utilized?

c) Is SABRAS planning to establish such CRCs in other villages too.

8. SABRAS provides training to salt workers to establish micro enterprises. What does the

training entail? Have any micro enterprises been established?

9. SABRAS hopes to replace diesel pumps with solar pumps for the extraction of salt.

a) Can you help us understand the process o

solar pumps?

b) How are solar pumps an improvement over diesel pumps?

c) SABRAS began with providing 2 solar pumps in 2010. Which villages were these

pumps installed in.

d) In 2011, SABRAS aims to set up about 100 solar pumps

have been installed so far?

FINANCIAL OPERATIONS

10. What was the set-up cost of the company? SABRAS received $ 75,000 from First Light

Ventures. What end were these funds utilized for?

11. We understand that salt workers hold 74% equi

company. As far as ownership is concerned SAVE owns 85% of the company and salt

workers own 15%.

a) What is the difference between equity and ownership?

b) How is ownership allocated between various salt workers?

12. Installing solar pumps is extremely expensive. The cost of installing one pump is

approximately 2 lakhs. For this purpose SABRAS proposed the lease against own

program where it acts as a guarantor for the salt workers.








f) Knowledge services

AN YOU EXPLAIN HOW EACH OF THESE ACTIVITIES IS CONDUCTED, IN DETAIL

SABRAS has also set up mobile shelters for families and multipurpose community


SABRAS has also established a Community Resource Centre (CRC) in Jogad.

What is the purpose of the CRC?

To what extent is this CRC being utilized?

Is SABRAS planning to establish such CRCs in other villages too.

training to salt workers to establish micro enterprises. What does the

training entail? Have any micro enterprises been established?

SABRAS hopes to replace diesel pumps with solar pumps for the extraction of salt.

Can you help us understand the process of salt extraction using both diesel and

How are solar pumps an improvement over diesel pumps?

SABRAS began with providing 2 solar pumps in 2010. Which villages were these

pumps installed in.

In 2011, SABRAS aims to set up about 100 solar pumps. How many solar pumps

have been installed so far?

up cost of the company? SABRAS received $ 75,000 from First Light

Ventures. What end were these funds utilized for?

We understand that salt workers hold 74% equity and SAVE owns 26% equity in the


What is the difference between equity and ownership?

How is ownership allocated between various salt workers?

lar pumps is extremely expensive. The cost of installing one pump is


program where it acts as a guarantor for the salt workers.

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12


IN DETAIL?

SABRAS has also set up mobile shelters for families and multipurpose community


) in Jogad.

Is SABRAS planning to establish such CRCs in other villages too.

training to salt workers to establish micro enterprises. What does the

SABRAS hopes to replace diesel pumps with solar pumps for the extraction of salt.

f salt extraction using both diesel and

SABRAS began with providing 2 solar pumps in 2010. Which villages were these

. How many solar pumps

up cost of the company? SABRAS received $ 75,000 from First Light

ty and SAVE owns 26% equity in the


lar pumps is extremely expensive. The cost of installing one pump is


TRANSPARENCY AND



Government of India

a) How does the lease against own program function?

b) Which banks does SABRAS approach for loans?

c) SABRAS is providing assistance to salt workers in getting loans for solar pumps.

Does SABRAS assist salt workers in getting institutional credit for any other

purpose?

Impact

ACHIEVEMENTS

13. What are the major achievements of SABRAS in the past three years? How has it

impacted

a) The lives of salt workers

b) SABRAS as a company

CHALLENGES

14. What are the major challenges faced by SABRAS? How were they overcome?

a) There is a need to increase the customer base of SABRAS in

competition in the salt market. How does SABRAS plan to do so?

b) The cost of solar pumps in very high. Besides the lease to own program, SABRAS is

planning to look for alternative means (solar concentrating technological) of

financing these pumps. What are the other alternative solutions and how will they

be implemented?

Enhancements

15. What are the major enhancements planned for the future?

a) SABRAS is hoping to establish it own processing unit. Why is this necessary? How

will SABRAS go about it?

b) SABRAS plans to introduce salt by

branding SABRAS salt. How will this be done?

Data

16. Can you provide us with the following data:

a) Number of salt workers reached so far

b) Number of solar pumps installed

c) Number of villages covered

d) Contact details of other stakeholders







How does the lease against own program function?

Which banks does SABRAS approach for loans?

SABRAS is providing assistance to salt workers in getting loans for solar pumps.


achievements of SABRAS in the past three years? How has it

The lives of salt workers

SABRAS as a company

What are the major challenges faced by SABRAS? How were they overcome?

There is a need to increase the customer base of SABRAS in


The cost of solar pumps in very high. Besides the lease to own program, SABRAS is


these pumps. What are the other alternative solutions and how will they

What are the major enhancements planned for the future?

SABRAS is hoping to establish it own processing unit. Why is this necessary? How

about it?

SABRAS plans to introduce salt by-products and partner with retailers for co

branding SABRAS salt. How will this be done?

Can you provide us with the following data:

Number of salt workers reached so far

Number of solar pumps installed

ber of villages covered

Contact details of other stakeholders

CCOUNTABILITY



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13

SABRAS is providing assistance to salt workers in getting loans for solar pumps.


achievements of SABRAS in the past three years? How has it

What are the major challenges faced by SABRAS? How were they overcome?

There is a need to increase the customer base of SABRAS in order to face the stiff


The cost of solar pumps in very high. Besides the lease to own program, SABRAS is


these pumps. What are the other alternative solutions and how will they

SABRAS is hoping to establish it own processing unit. Why is this necessary? How

products and partner with retailers for co

Documents

Sabras: Empowering Salt Workers in Gujaratindiagovernance.gov.in/files/gkc_oneworld_sabras.pdf · the salt producer’s community and the urgent need for their economic empowerment