Saturday, October 8, 2011
A Fresh Path Ahead
We are going through interesting times. It has been a great roller coaster ride. After discussion with lot of people on path ahead and best model for scaling up, the path ahead is the route of private limited company. People have adviced us to form private limited company in the verticals of livelihood programmes and we have accepted the advice. Our initial idea was that producers will get shareholding in the marketing company. The producers , promoters and investors will get equal stakes while ESOPs may be 10% of the share capital. Many people adviced that things get complicated when producers and consumers both are on same board as they have conflicting interest. The balance becomes tough and it may bring the functioning of company in standstill in long term.
The current structure that is in our mind is following.
The producer will get their separate set of organisations. They will be free to market their products to any company including ours. We will not depute any CEO from our side for managing affairs of the producer organisations. We will build capacities in the producer organisations so that they can hire the professional staff or some one among them can become CEO of the producer organisation. BDT will try to get grants to nurture producer organisations to their ultimate objective of becoming self sustainable.
BDT will become solely grant recieving organisation which will promote producer organisation and build capacity in them by get experts, resources person, funds, organsing exposure visits, creating bank and credit linkages, technology transfer and awareness, grooming leadership , governance development of producer organisation etc. The present set of Trustees will become honorary and new set of trustees will be coopted like from old employees to community members. This will be done once BDT repays it all loans and all income generation activities are shifted to private limited companies in transparent manner.
The private limited companies will market the products sourced from BDT and producers associated with them . Later, The companies will market the products produced by producer organisations. The products will be sourced by market mechanisms but the producer company will be the preferred supplier to the marketing company. The private company will always pay the fair prices for the products souced from producer companies.The private companies will donate 5% of their PAT to BDT by passing board resolution so that the BDT can be in existence in perpetuity and continue doing welfare and producer organisation development work in the community.
Each private company will be handholded by strategic investors of that sector. We are operating in bamboo, textile and agri business domain. We will be seeking institutional or private shareholders who can support us for long term and handhold till IPO. We have the dreams of bringing IPO from Bihar and distribute thr products manufactured in Bihar to the whole world. This is the solution that will take us to the goals of 20 billion dollar enteprise by 2030 if not 2020 as was originally envisaged. We have resolved our internal dilemmas and found our way out from current confusion. It means its a new beginning. With BDT, It was tough to visualise 20 billion dollar group. But, With the private limited company we will reach that and can impact 10 lakh families of Bihar in positive manner. Now, mind is clearer. We have foreseen the solution. Now, the objective is to clear the debts of BDT . It will take 24 months to reduce the debt of 1.5 crore and we have our task cut out for it.
We have taken the challenge. The achievement of zero debt status without choking cash will determine our future after 12 months. We are moving ahead with our gameplan. We have taken the risk. God give us faith to implement this as we have taken steps towards the new path. As usual the johny walker ad comes to mind "Keep Walking". These two words have inspired me since my college days before I knew that its a liquor company. I am thankful to life for giving such painful but interesting experiences. Only thing is that my family now is feeling the pain also which should be part of story. Steve jobs died and his words are very clear . You have only one life and live as per your wish and for yourself. We have spent five years in understanding what we should have understood while starting out. Our story is an mirror to people who start without planning and the cost we have incurred by following the passion and gut feeling. The passion has brought us to this stage now its the cool head that will help us to cross this stage. We have burnt our stairs that has helped us to rise much and there is no other option than to go up and up.
Now that I have blurted out my feelings and I am feeling better. We know the revenue targets for getting the profit and repaying the loan. We have done revenue of 80 lakh in two entities till now in this year. We hope to cross 2 crores sales in 2 entities with keeping the same cost and next year we may cross 5 crores sales in two or three entities while increasing the cost to 10%. Then, we will cross the stage and will be in position to celebrate. We atleast now know where we have to go to become better. We seek all your prayers and blessing for achieving our goals and making Bihar Proud.
I would end with Mark Twain quote "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover."
Jai Bihar !!!
Jai Bharat !!!
Best Wishes to all of you
Dr Ravi Chandra
Friday, September 16, 2011
Thursday, June 16, 2011
Tuesday, June 14, 2011
BDT UPDATES
Dear Friends,
Greetings from BDT!!!
It has been long time since I wrote and shared BDT updates with you. Its has been an eventful last six months for Bihar Development Trust. We survived micro finance scare and are emerging as Livelihood institutions. The debt freeze to micro finance industry was biggest threat to BDT survival which forced the acceleration of livelihood programmes. Besides running a well managed micro finance programme, We are now implementing three established livelihood programmes with dedicated team and resources.
Weavers Livelihood Programme is supporting livelihood of 100 weavers in two clusters in Bhagalpur.
Farmers Livelihood Programme is supporting livelihoods of 1500 farmers in three blocks of Aurangabad district.
Bamboo Livelihood Programme is supporting livelihoods of 500 SHG members and 200 Bamboo growers in Kahalgaon Bhagalpur.
BDT is providing institution building, bank linkage, credit linkage, technical training, technology transfer, governance and accountability training, marketing linkage ,infrastructure development welfare work etc through these livelihood programmes with grant and loan received by it from various donors and lenders. These programmes will support 3000 families this year.
We are repositioning BDT as a livelihood promotion institution with direct implementation. BDT is promoting a sustainable model in which founder entrepreneurs, producers, employees, investors have win-win relationship. All the stakeholders will be given proportionate shareholding in private limited company. The producer will be organised and registered into various legal entities which can own share in the proposed private limited marketing company. The concept is that producer focus on production which they know best and we focus on marketing linkage and branding in which we are gaining strength day by day. We are limiting our focus to weavers, farmer and bamboo based livelihood and scaling it up. For this only, BDT has been awarded as one of the winner in Development Marketplace 2011 organised by The World Bank, IFC & The World Bank Institute.
We have a new look of our website www.bihardev.org and would request you to visit it to know more about our model and work.
This year BDT balance sheet size is Rs.2.29 crore with a micro finance loan outstanding portfolio of Rs. 1.15 crore and revenue of Rs.82 lakh and while it received grant support of Rs.16 lakh approximately which was spent as per objective of grants.
BDT is well linked to buyers and has more demand that it can meet for bamboo sticks, stoles, fabrics, vermicompost etc. BDT need working capital support to grow these programmes through internal accruals and surpluses. Besides, those connected to donors/lenders circuit can help BDT by lending it loan for working capital purpose of Rs. 10 Million this year. We have viable business plan for each of livelihood programmes and these can be shared to interested people. These loans will support livelihood of 3000 producer families through wage, purchase of raw materials and finished goods and surplus sharing.
Appeal for Donations:
For these initiatives to grow and support more and more livelihoods, BDT needs financial support from you. Each one of you can support livelihood of one weavers , farmers or SHG members by contributing 10,000 rupees towards vermicompost pit construction for a farmer, bamboo processing slicing machine for a SHG group or improving the hand looms for a weavers. You will be linked to one producer which will receive your support and interact with him over phone and his/her story will be updated on website.
BDT has been supported by AIACA, SDTT, AIF, NABARD,FWWB, BASIX, RGVN, TMN,FORD FOUNDATION,SBI, PNB,INDIAN BANK,SIDBI, Union Bank, Ananya Finance and many more over last four year. BDT is very grateful to these donors and lending agencies for their support.
BDT epitomises the spirit of a survivor and has been live example of the phrase '' what does not kill you makes you stronger''. Over the last four year, we have grown stronger and stronger with the support of your wishes. We wish to hear back from you. Please write back to us on bihardev@gmail.com.
With Best Wishes
Dr. Ravi Chandra
Managing Trustee & Chief Finance Officer
9771438191
Greetings from BDT!!!
It has been long time since I wrote and shared BDT updates with you. Its has been an eventful last six months for Bihar Development Trust. We survived micro finance scare and are emerging as Livelihood institutions. The debt freeze to micro finance industry was biggest threat to BDT survival which forced the acceleration of livelihood programmes. Besides running a well managed micro finance programme, We are now implementing three established livelihood programmes with dedicated team and resources.
Weavers Livelihood Programme is supporting livelihood of 100 weavers in two clusters in Bhagalpur.
Farmers Livelihood Programme is supporting livelihoods of 1500 farmers in three blocks of Aurangabad district.
Bamboo Livelihood Programme is supporting livelihoods of 500 SHG members and 200 Bamboo growers in Kahalgaon Bhagalpur.
BDT is providing institution building, bank linkage, credit linkage, technical training, technology transfer, governance and accountability training, marketing linkage ,infrastructure development welfare work etc through these livelihood programmes with grant and loan received by it from various donors and lenders. These programmes will support 3000 families this year.
We are repositioning BDT as a livelihood promotion institution with direct implementation. BDT is promoting a sustainable model in which founder entrepreneurs, producers, employees, investors have win-win relationship. All the stakeholders will be given proportionate shareholding in private limited company. The producer will be organised and registered into various legal entities which can own share in the proposed private limited marketing company. The concept is that producer focus on production which they know best and we focus on marketing linkage and branding in which we are gaining strength day by day. We are limiting our focus to weavers, farmer and bamboo based livelihood and scaling it up. For this only, BDT has been awarded as one of the winner in Development Marketplace 2011 organised by The World Bank, IFC & The World Bank Institute.
We have a new look of our website www.bihardev.org and would request you to visit it to know more about our model and work.
This year BDT balance sheet size is Rs.2.29 crore with a micro finance loan outstanding portfolio of Rs. 1.15 crore and revenue of Rs.82 lakh and while it received grant support of Rs.16 lakh approximately which was spent as per objective of grants.
BDT is well linked to buyers and has more demand that it can meet for bamboo sticks, stoles, fabrics, vermicompost etc. BDT need working capital support to grow these programmes through internal accruals and surpluses. Besides, those connected to donors/lenders circuit can help BDT by lending it loan for working capital purpose of Rs. 10 Million this year. We have viable business plan for each of livelihood programmes and these can be shared to interested people. These loans will support livelihood of 3000 producer families through wage, purchase of raw materials and finished goods and surplus sharing.
Appeal for Donations:
For these initiatives to grow and support more and more livelihoods, BDT needs financial support from you. Each one of you can support livelihood of one weavers , farmers or SHG members by contributing 10,000 rupees towards vermicompost pit construction for a farmer, bamboo processing slicing machine for a SHG group or improving the hand looms for a weavers. You will be linked to one producer which will receive your support and interact with him over phone and his/her story will be updated on website.
BDT has been supported by AIACA, SDTT, AIF, NABARD,FWWB, BASIX, RGVN, TMN,FORD FOUNDATION,SBI, PNB,INDIAN BANK,SIDBI, Union Bank, Ananya Finance and many more over last four year. BDT is very grateful to these donors and lending agencies for their support.
BDT epitomises the spirit of a survivor and has been live example of the phrase '' what does not kill you makes you stronger''. Over the last four year, we have grown stronger and stronger with the support of your wishes. We wish to hear back from you. Please write back to us on bihardev@gmail.com.
With Best Wishes
Dr. Ravi Chandra
Managing Trustee & Chief Finance Officer
9771438191
Tuesday, June 7, 2011
BDT is growing
Bihar Development Trust is an emerging livelihood promotion institution founded by rural management professionals from IRMA (Institute of Rural Management, Anand) in 2007. Bihar Development Trust is operating in Patna, Bhagalpur and Aurangabad Districts of Bihar. It has a community outreach of 10,000 families and employee strength of 60 in its five offices. It is working in field of livelihood promotion and institution building area with weavers, farmers and bamboo growers and SHG women who are processing bamboo into sticks. Microfinance programme provides credit and insurance services and promotes savings and financial literacy among women. BDT promotes financial inclusion and provides credit linkages to its members of its livelihood and microfinance members. BDT has created a niche space in development sector by virtue of its ability to provide market linkages to all its livelihood programme successfully and growing steadily.
Tuesday, May 3, 2011
Friday, February 18, 2011
Saturday, January 1, 2011
BDT wishes you a Very Happy & Prosperous New Year 2011
Dear Friends,
Greetings!!!
BDT wishes you a very Happy and Prosperous New Year 2011. We hope and pray that we all realise our potential and dreams in the coming years.
2010 is going to end and its time for reflection. 2011 is coming and its time to work for achieving the goals in 2011.
For BDT 2010 has been an exciting year. We are in our fourth year of existence and hence survived the initial three years that is crucial for any start up venture. BDT has survived in adverse condition is itself a testimony of its character. We started and were hit by 2008 Global crisis.As we are walking out of infant hood and growing as a child , we are hit by AP Crisis. We are not to be blame for both the crisis but we are the hardest hit by both crisis. In 2008, our supporters and well wishers bailed us out. This time our diversification strategy has helped us unknowingly. Our 50 team members are assured that there will be no lay offs and they can celebrate their new year with hope and better future. Those who have read ''WHO MOVED MY CHEESE'' can relate to BDT condition. AP Crisis has moved our cheese and luckily we have already planned for our new cheese and were getting it. Recent crisis has vindicated the BDT model of livelihood work along with microfinance programme. In the crisis, we have returned the money with an interest of 12% per annum to many of our initial contributors who helped to survive BDT three years ago. We are forever indebted to our initial contributors.
In Microfinance, the fresh credit has dried off since last three months and our portfolio is decreasing. We are waiting for fresh credit disbursement from our lenders. The repayment is continuously on time and we are able to repay all lenders on time and make some new loans in field. After achieving the breakeven, we have again slid into losses in our microfinance programme. We are now in thinking mode and asking for inputs to derisk the microfinance model from regulatory risk or risk from external environment. We have one of the most diversified lenders base in Bihar for our microfinance programme and well defined system and processes for a small microfinance operation like us. Rickshaw puller livelihood programme has also been growing along with microfinance programme.
Our Tasar Silk programme is running well and we have crossed the sales of Rs. 50 lakh in last six months. We are supporting the livelihood of around 100 weavers. We have founded Lodipur Bunkar Trust whose bank account has been opened in IDBI bank. The lodipur bunkar trust is the first Mutual Benefit Trust which will be getting shareholding in Tana Bana Marketing Private Limited which is the marketing company promoted by BDT founders. As marketing problem has been solved, we are struggling for working capital for growth. Our buyers include CFM, Rangsootra, Sadhna, Sewa and Fab India. FWWB has supported us with working capital loan.
Our agriculture programme has been started in Daudnagar, Aurangabad this year and is running on loan funds from well wishers till date. We have an outreach of around 500 farmers and in process of organising them into farmers club in 40 villages. These farmer club will have their own bank accounts and we hope to provide agri input extension and marketing linkage services through farmer clubs. We have crossed the sales of Rs. 20 lakh in seeds and vermicompost this year. We plan to procure 10000kg of rice from our member farmers. We hope to create storage space for farmers for better time value addition.
Our agarbatti stick making unit is in process of getting ready in Kahalgaon, Bhagalpur with support of NABARD. Around 500 women are now in process of being organised as SHG in three village around the unit. The machinery orders have been placed and we hope to begin production by end of Jan 2011. This unit has the potential to create 5000 employments in next five years in adjacent area. Besides, there will be bamboo plantation in 50 acres of Land in june 2011.
In 2010-2011,we have an outreach of 6000 families in three district and we are about to cross the revenue of Rs.100 lakh but very little surplus as a group. In 2011, we will be crossing an outreach of 10000 families in above four activities in three district and will try to cross the group revenue to Rs. 300 lakh. We are straddling the whole value chain of weaving, stick making and agriculture sectors. These are small pilots which are growing and taking shape. They have the potential to transform the whole sector and in this process create wealth for all stakeholders.
We are trying to catalyse million mutinies at individual household for development of Bihar. We feel happy when our office boy Ajit buys a TV at Diwali and has been able to support his brother education and family. We feel happy that Shivnandan, our weaver has been able to grow from weaver to a micro entrepreneur and is talking about sub contracting orders from us. We feel happy when our micro finance borrower Renu Devi who started in puja material shop in barari with our loan and share her growth story with our field officers over last two years. We feel happy when our field officers who started on paltry salary of Rs.500 a month are now earning 6000-8000 per month and able to command better respect and social status due to their improved economics. We have lots and lots of small success stories to share at micro level which we wish to document and share but can not do because of our inability to find time to documents them.
It our endeavour to share positive stories from Bihar and make you aware about the positive changes sweeping across Bihar at micro level.
We are grateful to support of you and donor agencies and financial institutions like FWWB, Ananya Finance, TMN,AIF, RGVN, IGS Basics, SIDBI, SBI, Union Bank, Indian Bank, PNB, NABARD, SDTT, AIACA, Ford Foundation, GTZ, KFW, WOG etc.
Thank you for reading such a long mail and Wish you and your family a very happy and prosperous 2011 !!!!
Regards
Dr Ravi Chandra
Managing Trustee
Bihar Development Trust
Greetings!!!
BDT wishes you a very Happy and Prosperous New Year 2011. We hope and pray that we all realise our potential and dreams in the coming years.
2010 is going to end and its time for reflection. 2011 is coming and its time to work for achieving the goals in 2011.
For BDT 2010 has been an exciting year. We are in our fourth year of existence and hence survived the initial three years that is crucial for any start up venture. BDT has survived in adverse condition is itself a testimony of its character. We started and were hit by 2008 Global crisis.As we are walking out of infant hood and growing as a child , we are hit by AP Crisis. We are not to be blame for both the crisis but we are the hardest hit by both crisis. In 2008, our supporters and well wishers bailed us out. This time our diversification strategy has helped us unknowingly. Our 50 team members are assured that there will be no lay offs and they can celebrate their new year with hope and better future. Those who have read ''WHO MOVED MY CHEESE'' can relate to BDT condition. AP Crisis has moved our cheese and luckily we have already planned for our new cheese and were getting it. Recent crisis has vindicated the BDT model of livelihood work along with microfinance programme. In the crisis, we have returned the money with an interest of 12% per annum to many of our initial contributors who helped to survive BDT three years ago. We are forever indebted to our initial contributors.
In Microfinance, the fresh credit has dried off since last three months and our portfolio is decreasing. We are waiting for fresh credit disbursement from our lenders. The repayment is continuously on time and we are able to repay all lenders on time and make some new loans in field. After achieving the breakeven, we have again slid into losses in our microfinance programme. We are now in thinking mode and asking for inputs to derisk the microfinance model from regulatory risk or risk from external environment. We have one of the most diversified lenders base in Bihar for our microfinance programme and well defined system and processes for a small microfinance operation like us. Rickshaw puller livelihood programme has also been growing along with microfinance programme.
Our Tasar Silk programme is running well and we have crossed the sales of Rs. 50 lakh in last six months. We are supporting the livelihood of around 100 weavers. We have founded Lodipur Bunkar Trust whose bank account has been opened in IDBI bank. The lodipur bunkar trust is the first Mutual Benefit Trust which will be getting shareholding in Tana Bana Marketing Private Limited which is the marketing company promoted by BDT founders. As marketing problem has been solved, we are struggling for working capital for growth. Our buyers include CFM, Rangsootra, Sadhna, Sewa and Fab India. FWWB has supported us with working capital loan.
Our agriculture programme has been started in Daudnagar, Aurangabad this year and is running on loan funds from well wishers till date. We have an outreach of around 500 farmers and in process of organising them into farmers club in 40 villages. These farmer club will have their own bank accounts and we hope to provide agri input extension and marketing linkage services through farmer clubs. We have crossed the sales of Rs. 20 lakh in seeds and vermicompost this year. We plan to procure 10000kg of rice from our member farmers. We hope to create storage space for farmers for better time value addition.
Our agarbatti stick making unit is in process of getting ready in Kahalgaon, Bhagalpur with support of NABARD. Around 500 women are now in process of being organised as SHG in three village around the unit. The machinery orders have been placed and we hope to begin production by end of Jan 2011. This unit has the potential to create 5000 employments in next five years in adjacent area. Besides, there will be bamboo plantation in 50 acres of Land in june 2011.
In 2010-2011,we have an outreach of 6000 families in three district and we are about to cross the revenue of Rs.100 lakh but very little surplus as a group. In 2011, we will be crossing an outreach of 10000 families in above four activities in three district and will try to cross the group revenue to Rs. 300 lakh. We are straddling the whole value chain of weaving, stick making and agriculture sectors. These are small pilots which are growing and taking shape. They have the potential to transform the whole sector and in this process create wealth for all stakeholders.
We are trying to catalyse million mutinies at individual household for development of Bihar. We feel happy when our office boy Ajit buys a TV at Diwali and has been able to support his brother education and family. We feel happy that Shivnandan, our weaver has been able to grow from weaver to a micro entrepreneur and is talking about sub contracting orders from us. We feel happy when our micro finance borrower Renu Devi who started in puja material shop in barari with our loan and share her growth story with our field officers over last two years. We feel happy when our field officers who started on paltry salary of Rs.500 a month are now earning 6000-8000 per month and able to command better respect and social status due to their improved economics. We have lots and lots of small success stories to share at micro level which we wish to document and share but can not do because of our inability to find time to documents them.
It our endeavour to share positive stories from Bihar and make you aware about the positive changes sweeping across Bihar at micro level.
We are grateful to support of you and donor agencies and financial institutions like FWWB, Ananya Finance, TMN,AIF, RGVN, IGS Basics, SIDBI, SBI, Union Bank, Indian Bank, PNB, NABARD, SDTT, AIACA, Ford Foundation, GTZ, KFW, WOG etc.
Thank you for reading such a long mail and Wish you and your family a very happy and prosperous 2011 !!!!
Regards
Dr Ravi Chandra
Managing Trustee
Bihar Development Trust
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