6 BUSINESS MODEL
Creating a Sustainable Business System for Sanitation A business ecosystem for sanitation
Membership system
The Sanir concept proposes a social business model to tackle the challenges of developing a sustainable sanitation system. Different partners and stakeholders from commercial and governmental areas have been considered for its realization and success. The Sanir business model is divided into two major tiers, each is treated separately but both are dependent on each other for their success. 1) The Treatment Facility, which has the capacity of treating the human waste input of 50,000 people per day, and 2) The Community Sanitation Centres (CSC), which are designed to provide toilets and additional services to the equivalent of 300 people per day.
Community Sanitation Centres (CSC) provide users the option of signing in for a family membership, which features different benefits on top of pay-per-use schemes. The membership costs a maximum of $0.05USD/user/day and declines with the number of family members attached to it. Different fees are available for adults and children. Each membership includes a micro-health insurance provided by a Sanir partner (insurance based on existing market offerings). The membership also allows people to have unlimited access to the CSC in their community. Incentives such as product promotions at the CSC sanitation product shop will be used to reward on-time payments and new member referral.
Revenue flow Micro health insurance Advertisement fee
Family membership Community Sanitation Centres (CSC)
Revenues
Treatment plant
CSC shop
User fees
Family membership scheme
This includes a micro-health insurance and promotions at the facility store for new member referral and on-time payments. A fraction of the membership fees goes to the insurance company; the rest is direct income for the CSC.
Fertilizer
The CSC’s have different advertisement spaces (see poster 5 for reference). Current practices in India show the interest of companies to promote their products in such spaces.
The nutrient-rich ash that is produced as a side product of the gasification process at the treatment plant can be used to enhance fertilizers. Potential revenues are calculated based upon different market standards and experiences from similar projects.
REC & CO2
Micro-health insurance
Commissions for the sale of this insurance to people with access to a proper sanitation facility are translated into incomes for the facility. This is based on existing insurance products on the market.
Sanir Comunity Sanitation Centres Per user/day costs and revenues
Revenues Capital Expenditure
Advertisement space
The CSC’s shop offers a franchise opportunity to external companies focused on sanitation products. Both the advertisements and franchising provide a stable income for the CSC.
300 users
Refine technology cost calculations and assumptions.
Waste Treatment plant
A forecast is projected for a Treatment Facility with the capacity to treat the feedstock produced by 50,000 people per day (eq. 150-200 CSC’s). The capital expenditure for the facility is currently projected to be $330,000 USD. Taking into consideration operation and maintenance as well as possible government subsidies, the current business model allows a return of investment of 10 years. Revenues Capital Expenditure
Explore partnership options for franchising the CSC shop.
166 CSC’s
Per user/day costs and revenues
A typical CSC is expected to receive 300 daily users from which 70-90% will end up enrolling in the membership system. The capital expenditure for each facility is currently projected to be approximately $15,000 USD (including on-site water treatment system). When taking into account operation and maintenance costs as well as user adoption rates over time, a return of investment of 5 years are expected.
Operation & Maintenance
Next steps
The microwave assisted plasma gasification process transforms dried waste into energy. Revenues coming form the Indian Renewable Energy Certificates (REC) scheme have been calculated based on the expected production of electricity. Additionally, income from Carbon Credits have been taking into account by comparing the CO2 savings accomplished by this system against traditional wastewater treatment solutions.
CSC shop franchise
Explore partnership options with micro-insurance companies.
www.tudelft.nl/reinventthetoilet
Operation & Maintenance
Test and revise membership assumptions and costs.