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Mother Earth
An inclusive business model…
Indian creative industries communities trapped
• 200 million rural artisans (estimated) live with income at under 2$ per day
• Large scale distress urban migration – Loss of artisan heritage– Overcrowding of urban areas leading to
scant opportunity– Further depression of wages
• Artisan families not able to– Own more of value chain– Scale up production
• Caught in a “Malthusian Trap”– Over-reliance on middle-men– No connection to actual market needs– Alienated from best practices & evolving
technology
Changing Markets, Changing Demographics• Urban Indian growth at 7.5% +
• 320 million additional people to enterthe Indian consuming class by 2015
• The worlds fastest growing organized retail market
• A new group of consumers emerging from small town India who are rootedin ethnicity yet aspire for modernity
• India has the worlds largest artisanal producer population
• However Indian creative industries manufacturing sector has just 2% global market share
• The need of the hour is to build models that move artisans up the value chain, so their incomes increase substantially
Mother Earth can connect the dots
• Has retail presence in Home, Fashion, Food and provides sustained business at fair wages to producer groups it helps incubate
• Scaling up markets across India, using Future Group’s retail network alongside own flagship stores as well as building a strong export business.
• Is incubating artisans owned production units (BIGs- Business Interest Groups) supported with common facility centers, access to working capital and sustained markets
• Is technologically enabling BIGs to connect to urban and global retail through market information, training, design & quality inputs
• aggregation through apex bodies for producers
The Market- The Customer, The Brand
6 Mother Earth stores
2 Franchise stores
42 Shop in shops at Shoppers Stop, Home Stop, Central, Home Town
Wholesale and distribution within India to E commerce sites such as Flip Kart, Jabong, Myntra
Exports- TJX, Pier1
Production Through Artisan Owned Business Interest Groups
20 Business Interest Groups incubated internally have supplied, 1 mil USD, 40% of the purchase of ME in 11-12
Product wise Break Up• Natural Fibres 8 BIGs• Gift & Décor 4 BIGs• Home Textiles 2 BIGs• Apparel 2 BIGs
Support services provided to BIGs Market Access Modern DesignFinancial AccessImproved Raw Material SupplyImproved TechnologyFinancial and Production Planning Value Engineering Improved process flow
The Equitable Supply ChainMother Earth
BIG1
• Direct to Urban Consumers• Marketing/PR• Brand Development• Feedback loop for new product design• Supply Chain Management • Artisan ownership in brand,10% @ par
• The Producer Companies collates benefits for BIGs clustered under them, state wise.
• Ensuring Social Security and work benefits• 100% Producer owned
• 100% community owned groups organized as SHGs/small enterprises
• Produce high quality products • Are linked across-skills to create multi material
products• 100% producer owned
BIG 1BIG 2 BIG 2Business Interest Groups
Producer Company Karnataka-Bangalore, Hubli
Producer Company Tamil Nadu-Erode, Dharmapuri
Producer Companies
Mother Earth
Scaling Up the Equitable Supply Chain – Building on PPP
BIG 1
Producer companies to be formed with artisans under GOI cluster projects being implemented by Industree Foundation in 8 states
Main GOI partner current is Ministry of Textiles- DC (Handicrafts)- Theme Cluster &Mega Cluster schemes
Prospective
Ministry of Commerce- Production Parks National Livelihoods Mission- Innovative Projects & Natural Resource ManagementMSME- Cluster ProjectNABARD- Nab Fin, Nab Cluster schemes
BIG 3BIG 2 BIG 1
Producer Companies in Rajasthan,Uttar PradeshBihar West BengalOrissaAndhra Pradesh
foundation
Social Mobilization, Skills & Design Training,Enterprise set upMarketing linkageFinancial ManagementLeadership BuildingWorking capital, Social security, PF ESI, Gratuity and bonus sharing for Producers
The Eco System at a glance
WORKING CAPITALMesofinance
SKILL BUILDINGInvestment
NSDC
SGHs/BIGsSHGs/BIGs
WORKING CAPITALApex Producer Institutions
Bank Finance, NAB FIN INFRASTRUCTURE PPPs
MARKETSMother EarthInvestment FV
Consumers
Industree Foundation
Consumers
WIN WIN WIN WINGet access to quality, affordable, local products that improve artisan lifestyles
Get consistent supply of innovative products that are in lockstep to changing consumer tastes
Get increased earnings, consistent markets, access to working capital and infrastructure loans, constant product innovation support, ownership of shared production units
Socially, Economically, Culturally and Environmentally sustainable practices
CONSUMERS
RETAILERS
ARTISANS
SUSTAINABILITY
Mother Earth’s innovative social enterprise modelMother Earth is a brand promoted by Industree, 18 year history in the social enterprise space. A pioneering & innovative hybrid model. The for profit- Industree Crafts Pvt. Ltd now rebranded Mother Earth was formed in 1994. Non profit Industree Foundation instituted in 2000.
products
Enterprise Set Up Schemes and Projects of Govt. & Dev Agencies
INDUSTREEFOUNDATION
ProducerGroups
BIGs
Markets•Own Stores
•Other retailers•Exports
Design & Skill BuildingSelf Help Group Development.Working Capital AccessSocial Security
products
funds
Retail, Distribution
Exports
Design, Merchandising,
Warehouse Finance ,MIS,
QC, HR, IT
Supply Chain Mgmt
Mother Earth
Our strong financial projections impact artisans
USD 2012 2013 2014 2015 2016
Mother Earth Sales 3m 5m 9m 19m 38m
ME annualPurchase 2m 3m 5m
11m22m
Annual Buyingfrom BIGs 0.70m 1.4m 2.6m 6m 12m
Annual buying from Small artisans, coops etc.
0.35m 0.7m 1.2m 3m 6m
No of artisans in BIGS 200 400 700 1500 3000
# of artisans, directImpact at finished product level
3200 4000 6000 12000
20000
Artisans Net Income 0.31m 0.6m 1.1m 3m 6m
Management Team ready to deliver results
Management TeamNeelam Chhiber, Social Entrepreneur of Year 2011 Co Founder and MD, Industrial Designer,
NID Global Social Impact Incubator AlumunusPiyush Deogirikar, COO
14 years of retail and distribution experience MBA, IIMB160 employee strong organisation,MentorsMr. Kishore Biyani, MD, Future Group, India's leading retailer, awarded International Retailer
of the year by National Retail Federation, USA 2006
Join this game changing venture
• Growing Indian retail market generating record sales in brands rooted in “affordable design”
• Mother Earth is uniquely positioned to capture this market and uplift artisan lives
• Backed by production infrastructure it is enabling producer groups across 8 states, in partnership with GOI
• With working capital access , in 5 years, we can reach 20,000 artisans directly and an additional 30,000 indirectly aggregating USD 10m USD incomes for artisans
Thank you!