In Kaniyakumari district in Tamil Nadu, as in many districts of India, many people want to enjoy the benefits of a cleaner home environment, yet very few can afford branded cleaning products, promoted by multi-national companies. This is why Mrs Suleelabai, co-founder of the Anna Theresa Women’s Development Society, a local not-for-profit organisation, took it upon herself to learn the essentials of making low-cost alternatives that can be produced at cottage industry level. She raised the necessary money from local business people and contributed her own time to buy books and participate in a practical training course on the subject. Her vision was to show others how to make pH-balanced soap, detergent powder and disinfectant liquids that would “kill all known germs”, yet be less harmful to the environment than branded products.
As part of its post-tsunami programme, Transrural has sponsored market research in the district. This shows that there is widespread demand for these products, that it is very price-sensitive due to low consumer buying power and competition, that there is a need for good local organisation, use of appropriate technology at village level, local branding, training in following strict safe practice guidelines, and effective promotion. The economics add up, as production costs are far lower and so the ame strength of local cleaning material can be sold at roughly half the price of the internationally-branded product.
Our initial market research highlighted an opportunity and a threat. The government of India has instituted a policy guideline to local government offices, advising them to purchase supplies from local self-help groups to alleviate poverty, in cases when it is practicable and cost-effective to do so. We were told of one case in which a group succeeded in securing approval to supply a small quantity of cleaning materials to the local government office. However, they were given to understand that approvals for further contracts would be much easier to secure if local officials were to receive “commission” payments – which would wipe out any potential net benefit to the producer. Such situations are not uncommon, and part of Transrural’s project is to advise and sponsor training on advocacy to help stamp out such practices.
For the period 2009-2011, we plan to sponsor training in technical skills and promotion, provide guidance on group organisation and managing a small business, offer matching grants for selected items of appropriate technology such as mixing machines, assist with local packaging and presentation of the cleaning products, develop health and safety guidance, and foster group savings and credit schemes to by-pass the money-lenders. Depending on the degree of success achieved among 300 “beneficiaries”, the experience will be shared with others in India and beyond in 2012, to encourage lesson-learning and replication.
