2. 2 Breathing Space Video FYI - the BS Video is now up on the websitehttp://www.shellfoundation.org/index.php?menuID=3&s menuID=10&bmenu=5

3. 3 Problem: Across the world 1.6 m women and children die annually Donor-funded projects have had limited impact inappropriate technology fixes limited donor funding available SF Response: Market-based pilots in 5 countries across Africa, Latin America, India Tested finance, products, business-models, etc Drew on Shell market knowledge, supply & distribution exp, business planning skills, etc Outcomes: 200,000 stoves sold in under 3 years; 1m people out of risk good but tiny % out of 500m H/Hs Learnings: Demand exists; stove sales profitable; but margins too low for any but slow organic growth With right business model & seed $$, commercially viable stove industry could be catalysed… Why Breathing Space and what have we done so far ?

4. 4 Breathing Space vision Shell Foundation aims to achieve a significant verifiable long term reduction in the incidence of Indoor Air Pollution at the global level, by deploying approaches which are market oriented and commercially viable …….. 20 million stoves sold in 5 countries in next 5 years

5. 5 A high level review of the selected geographies has led us to start of in Phase 1 with India, Brazil and Uganda/Kenya markets now. CountryUrbanRural China11%89% India9%91% Uganda15%85% Brazil10%90% Urban/Rural Split for Commercial Market for Improved Cooking Devices Global Scale of Problem: Target Countries our focus  Current data indicates Indonesia also faces a significant IAP issue.  China opportunity assessment to be completed to determine the impact and scale of intervention required

6. 6 India Pilot –Where & what ♦ 2 pilots in Maharashtra & Bundelkhand to evaluate the commercialization of improved biomass fuels and cooking devices in India ♦ Monitoring and Evaluation of the Improved cook stove program for Indoor Air Quality assessment ♦ Testing the commercialization Toolkit and business plan too kit ♦ Appropriate Rural Technology Institute developed multiple stoves for local use, manufactured and marketed by 130 entrepreneurs and sold 75,000 stoves ♦ Development Alternatives developed multiple stoves for local use, manufactured locally, built criteria for a sustainable business in one of the poorest regions and evaluated microfinance options..

7. 7 Breathing Space Strategy ♦ Semi Commercial Model ♦ Focused strategic but recognize that it is only one solution ♦ Technology push that will deliver the improved stove performance and customer needs ♦ Continued focus on biomass ♦ Focus on domestic customer segment equivalent to $1-$3 per day ♦ Blend of Grant and ’investment’ funding.

8. 8 Biogas from Starchy/Sugary Waste Laxmi Wood Burning Stove Sarai Cooking System Char Briquettes from Agrowaste Vivek Sawdust Stove Sampada Gasifier Stove What l have we done Improved Cooking Devices

9. 9 Fixed stoves Fuel: Woody biomass and fuel wood Cost: US$ 6-US$ 20 Medium and Low Income Rural Portable Stoves Vivek stove: sawdust & powdery biomass Sarai system: charcoal or char briquettes Gasifier stoves: wood chips or pellets Cost: Rs. US$10-US$ 40 High and Medium Income Rural Medium Income Semi-Urban Compact Biogas System Floating dome type biogas plant & biogas stove Water-miscible starchy feedstock Cost: US$ 100-US$ 300 High Income Semi-Urban Medium and High Income Urban BPL MARKET SEGMENTS

10. 10 Training Entrepreneurs

11. 11 Sales outlet Production Units The Enterprise- supply chain Awareness & outreach

12. 12 Learnings from Pilots  Emergence of a semi commercial business model  Willingness of consumers to pay  Awareness raising on associated health issues  Appropriateness of products to meet consumer & market needs  Quality control & long term customer satisfaction and usage are critical. Durability of the product a important factor  A centralized model of production which will reduce production costs  Micro credit/ Micro finance to Entrepreneurs and Consumers  Strong need for interaction and coordination between all the functions  Last mile of the value chain needs to be developed

13. 13 How do we serve and take it forward ? Semi Commercial Business Model. Suppliers (Materials, Components) Regional Coordinator Centralised Manufacturer  Provide raw materials and components Technology Provider Business Plans for further scale up rolled out to reach 2 mn Households in Maharashtra,& Bundelkhand Retailers Wholesaler Awareness (IAP Awareness)  Set-up long-term awareness programme  Execute centralised IAP awareness Bus Dev Assistance  Provide core business skills training to regional coordinator and centralised manufacturer Marketing (Creating Demand)  Develop & disseminate marketing material (brands, designs, pamphlets) Enterprise Financing  Provide funds Customers NGOs (B2B)  Executing marketing campaigns (Raise awareness of stoves locally)  Monitor customer needs & communicate design changes to tech partner  Manage centralised quality control  Stove R & D  Manufacturer training & stove certification Finance Providers Consumer Financing Donor Funding  Manage overall ICS programme  Identify new districts and appoint manufacturer  Provide marketing material to manufacturer NGOs

14. 14 Vision ahead  Scaling up in India, Latin America and East Africa  Phased roll out to make a significant impact over the next 5 years  Selection of a competent partners for each stage of the business model are critical for successful implementation of the business model in all the states.

15. 15 For further information you can visit website www.shellfoundation.org Or contact Anuradha Bhavnani @ anuradha.bhavnani@shell.comanuradha.bhavnani@shell.com Sanyogita Seksaria @ s.sekasaria@shell.coms.sekasaria@shell.com