We created a business model with the focus on the implementation of the solar powered still, used to create lemongrass. Meanwhile Amrita University had made certain steps regarding the implementation. Basically we were both busy with the same subject, without knowing this about each other.
Now this looks inefficient, but can also be used to an advantage. The business model created by us can be seen as an unbiased second opinion on the subject. Here we will discuss the similarities and differences of the two approaches, from the point of view of our business model.
We have decided not to attach the full business model in the appendix. It is 15 pages long and only parts are relevant for this project. We will discuss solely these subjects here. Before writing the business model, a couple of assumptions were made. Here these will be explained in short.
- The university of Amrita hands us a completed market analysis that concludes there is an actual market for lemongrass oil.
- We have successfully invented a lemongrass still that produces enough oil to make a profit (however small this is).
- Amrita University is willing to lend micro-credits to farmers in the Wayanad region.
The first topic was not already completed as expected. There had been a visit by Amrita’s students where they had made a hypothesis on the necessity of the lemongrass oil, but this was not yet used to write a business model. Yet it led us to believe there was a market for the oil that indicated that the creation of a still would lead to a source of income for the villagers. During the time in Wayanad, a market research was executed and we constructed a business plan. This information is further elaborated in the part ‘FROM OIL TO PROFIT’.
The second assumption was that there was a still that could produce enough oil to provide the villagers with a profit. As you can read in the chapter on ‘The Distillation Unit’ the first 6 weeks were used to design, construct, test and optimise a prototype. A final design has been determined and will be constructed. This proves that the second assumption is now a correct one.
Finally the possibility of implementation for the lemongrass still was based on the assumption that Amrita University would provide the capital for micro financing to make it accessible for the villagers. Amrita University is not only willing to provide the capital; they are willing to donate the money without any form of interest. Their funds are aimed to help the villages without expecting anything in return. This makes the implementation a lot easier, because there should not be any time wasted on collecting funds. There might be arguments that a donation often leads to decline of the effectiveness of the material because villagers don’t feel a form of ownership. It is said that people look better after their products if they invest in them. In this case though, it is not the village, but Amrita that has invested in the technology. Specifically because of these donations, they stay involved with the villages and make sure the technology is effectively used. This is only possible because Amrita University is a local organisation. Apart from that the villagers have no savings whatsoever, what makes an investment very hard.
Now the assumptions have been covered, the rest of the business model can be reviewed. The students focused mainly on the sustainability of the project. They concluded that a key partner in the succession of the project was going to be a person of contact, located in the village. Once the lemongrass stills were installed it was going to be important that Amrita University kept a close eye on the progress. Not only to review if things were going according to plan, but also to be aware of certain repairs or maintenance that had to be performed. The villagers do not possess the skills or knowledge to perform such actions. The person in the village that worked for Amrita University was to inform the university on such news.
During the first visit to the village we met Hari; an educated local who is very involved with the development of Valaramkunnu. He was appointed by Amrita University to fulfil exactly that role that the Dutch students found necessary.
Two independent parties came up with the exact same necessities to ensure the sustainability of the project. Amrita had already taken steps, before we worked on the solutions. Instead of seeing this as double work, this can be seen as an independent check of the sustainability of the project.