The Istri Project

The problem is that street-side cloth ironing micro-entrepreneurs in India earning less than 5 dollars a day are using coal as a fuel source for their business. Coal is becoming increasingly scarce and expensive, and its usage is causing health problems such as chronic coughing and ruined clothes due to burning cinders. Moreover, coal takes 90-120 minutes for heating, which is reducing their productivity and business efficiency.

The solution is to transition street-side cloth ironing micro-entrepreneurs from using coal as a fuel source to using liquefied petroleum gas (LPG) by offering it a subsidized cost. LPG results in significant cost savings as it is around 50% cheaper than coal. It also reduces heating time to 2 minutes, which improves entrepreneurs' productivity and business efficiency. Moreover, LPG reduces carbon emissions by almost 700 kg per micro-entrepreneur per year. This transition to LPG will improve the micro-entrepreneurs' income and health, and it has already demonstrated sustainable median monthly income growth of more than 27% in the pilot program. The market conversion rate of 40% achieved in Bangalore shows that this program has the potential to transform the market.

The solution serves streetside cloth ironing micro-entrepreneurs in India who earn less than 5 dollars a day PPP. [$5 per day purchasing power parity is an internationally recognized poverty line]

There is no other organization in India that is catering to this population.

By transitioning to LPG from coal as a fuel source, the solution will impact their lives in several ways:

1. Increased income: The transition to LPG has already demonstrated sustainable median monthly income growth of more than 27% in the pilot program. This increase in income will provide greater financial stability and opportunities for the micro-entrepreneurs and their families.

2. Improved health: Coal usage causes chronic coughing and ruined clothes due to burning cinders, which can be prevented by switching to LPG. This will result in better health for the micro-entrepreneurs, allowing them to work more efficiently and effectively.

3. Increased business efficiency: LPG reduces heating time to 2 minutes, which improves entrepreneurs' productivity and business efficiency compared to coal's 90-120 minutes. This will allow them to serve more customers in less time and increase their profits.

4. Reduced carbon footprint: LPG adoption reduces carbon emissions by almost 700 kg per micro-entrepreneur per year. This will contribute to reducing the negative impact of their business on the environment and help in the fight against climate change.

5. Lower fuel costs: As coal becomes increasingly scarce and expensive, transitioning to LPG results in significant cost savings (~50% cheaper). This will reduce the financial burden on the micro-entrepreneurs, allowing them to reinvest in their business and improve their quality of life.

Overall, the solution will have a significant positive impact on the lives of streetside cloth ironing micro-entrepreneurs in India by increasing their income, improving their health, increasing their business efficiency, reducing their carbon footprint, and lowering their fuel costs.

Udhyam Learning Foundation and its team are best placed to ensure the success of the ISTRI Project for several reasons. 

Firstly, the organization has already conducted two successful pilots in 2 cities, where 40% of the market converted to LPG iron boxes and importantly the income of the micro entrepreneurs increased by 30%. 

Secondly, Udhyam has a highly skilled and experienced team that includes experts in social entrepreneurship, program management, and partnerships. The team is passionate about creating impact and has a deep understanding of the challenges faced by micro-entrepreneurs in India.

Thirdly, Udhyam has a strong network of partners, including NGOs, government agencies, financial institutions, and manufacturers of LPG iron boxes.

Finally, Udhyam has a proven track record at the organizational level, exemplified by the Shiksha program. The program aims to instill an entrepreneurial mindset among learners and has been successfully implemented for nearly one million students in India with the support of eight state governments. Additionally, through the Udhyami Project, 500 micro entrepreneurs in Bangalore received micro loans and assistance with business development.

Size of the Problem - 2,00,000+ Families in India

Our impact so far :

5,000+ Families 

• Income Uplifed - 3 Million Dollars Recurring Annually
• Coal Useage Reduction - 2,500 Tonnes Anually

We are seeking opportunities to get more mentorship / advise, and to establish connections with other solvers, with the aim of gaining insights from their work and collaborating together towards our common goals.

One of our interest to collaborate with other solvers is to learn and utilize their local geographical expertise which will be very beneficial for our distribution efforts.

The Istri project is innovative because it approaches the problem of low-income streetside cloth ironing micro-entrepreneurs in India in a new and improved way. Unlike other organizations that are not addressing their challenges, the project focuses on transitioning the entire market from using coal to using liquefied petroleum gas (LPG).

The project's pilots demonstrated that LPG results in significant benefits such as saving 133 minutes per day in fuel heating time, ironing 9-12 more clothes daily, and increasing their average monthly income by 30% and other benefits on health and quality of work environment. Additionally, the post-intervention evaluation revealed over 40% of the market converted to LPG iron boxes, which shows the potential for broader positive impacts.

To catalyze broader positive impacts, the project offers subsidies to increase adoption rates for LPG-based iron boxes, conducts targeted interventions at every node of the value chain, connects various stakeholders, and does awareness programs and targeted marketing campaigns. These efforts will help transform the market and improve the livelihoods of micro-entrepreneurs.

Moreover, the project plans to create a playbook about the program model, which can be implemented by other organizations in other locations, further expanding the potential positive impacts.

Overall, the Istri project's innovative approach can change the market by transitioning it from coal to LPG, improving the livelihoods of micro-entrepreneurs, and creating positive impacts on health and the environment. The project's efforts can also inspire other organizations to take up similar initiatives and create a broader positive impact in the space.

Next year:

• Increase the adoption of LPG-based iron boxes among streetside cloth ironing micro-entrepreneurs in India by 50% compared to the previous year
• Partner with at least two more organizations to expand the project's reach and impact

Next five years:

• Transition the entire streetside cloth ironing micro-entrepreneur market in India from coal to LPG-based iron boxes
• Increase the average monthly income of micro-entrepreneurs by 40% compared to their income before the project
• Reduce the amount of coal used in the streetside cloth ironing sector in India by 75%
• Create a replicable model for transitioning other markets from coal to LPG-based solutions in other countries with similar challenges

For SDG 1 - No Poverty:

• Increase the average monthly income of micro-entrepreneurs using LPG-based iron boxes
• Track the percentage of micro-entrepreneurs who are able to increase their savings and invest in their business

For SDG 3 - Good Health and Well-being:

• Monitor the number of micro-entrepreneurs reporting improved health and safety conditions after switching to LPG-based iron boxes

For SDG 7 - Affordable and Clean Energy:

• Track the percentage of micro-entrepreneurs who have transitioned from coal to LPG-based iron boxes
• Track how much coal usage was reduced

For SDG 8 - Decent Work and Economic Growth:

• Track the increase in the number of hours worked and clothes ironed by micro-entrepreneurs using LPG-based iron boxes
• Monitor the number of jobs created as a result of increased demand for LPG-based iron boxes

For SDG 9 - Industry, Innovation, and Infrastructure:

• Track the number of organizations partnering with the Istri project to expand its reach and impact
• Monitor the number of LPG-based iron box manufacturers and distributors in the market

Theory of Change

The Istri project aims to improve the income and living conditions of micro-entrepreneurs in India who earn less than $5 a day by transitioning them from using coal to using liquefied petroleum gas (LPG) for their ironing business.

1. Activities: The Istri project will provide subsidies to increase the adoption of LPG-based iron boxes, do targeted interventions at every node of the value chain, connect various stakeholders, do awareness programs, run targeted marketing campaigns, and enable access to loans for micro-entrepreneurs.

2. Outputs: The immediate outputs of these activities will be increased availability and adoption of LPG-based iron boxes, improved access to financing and training for micro-entrepreneurs, increased awareness and demand for LPG-based iron boxes among customers, and improved supply chain management for LPG and iron boxes.

3. Outcomes: These outputs are expected to lead to several longer-term outcomes, such as:
   • Increased income and savings for micro-entrepreneurs, as they are able to iron more clothes in less time and at a lower cost, and access loans to expand their business. 
   • Improved health and safety conditions for micro-entrepreneurs, as they no longer have to inhale harmful fumes from burning coal. 
   • Increased demand for LPG-based iron boxes, leading to the growth of a new market for this technology and the creation of new jobs in the manufacturing and distribution sectors. 
   • Financial inclusion of micro-entrepreneurs, enabling them to access loans and other financial services to expand their business and improve their economic stability.

1. Impact: The ultimate impact of the Istri project is the transformation of the streetside cloth ironing micro-entrepreneur market in India, leading to improved income and living conditions for this marginalized group, contributing to poverty reduction and sustainable development in the country, and fostering financial inclusion for micro-entrepreneurs.

• Core Technology - The LPG ironing Box, The Playbook (helps one implement the program on the ground - Beta Version Ready)
• Technology used for project implementation and tracking includes - Google Workspace and Kobo (Data collection), Looker Studio (live tracking) among many others

As a non-profit organization, we are committed to promoting diversity, equity, and inclusion in all aspects of our work, including our solution to increase the income of streetside cloth ironing micro-entrepreneurs in India.

To ensure that our program is accessible to all micro-entrepreneurs, we work with local partners to identify and engage with entrepreneurs from different backgrounds and communities, including women, people from marginalized communities, and those with disabilities. We provide targeted support to these entrepreneurs, such as training and financial assistance, to help them transition from coal to LPG-based ironing.

We also prioritize equity by ensuring that our program benefits all participating micro-entrepreneurs equally, regardless of their gender, caste, religion, or other demographic factors. We do this by conducting regular monitoring and evaluation of our program to identify any potential biases or disparities, and taking corrective action if necessary.

In addition, we promote inclusivity by ensuring that our outreach and communication strategies are accessible to all micro-entrepreneurs, regardless of their level of literacy or language proficiency. We use a range of communication channels, including digital and non-digital formats, to ensure that our message reaches all potential beneficiaries.

Overall, we are committed to incorporating diversity, equity, and inclusion into our work and ensuring that our program benefits all micro-entrepreneurs equally, regardless of their background or circumstances.

Our business model relies on a combination of funding sources, including grants from foundations, corporations, as well as donations from individual supporters. We also have our own central corpus which helps us to do our work. We also engage in partnerships and collaborations with other organizations to leverage our resources and expertise, and to amplify the impact of our programs.

As a non-profit organization, our plan for becoming financially sustainable involves diversifying our funding sources and building long-term partnerships with donors and supporters.

To achieve this, we are exploring a range of revenue-generating opportunities, such as fee-based services, social enterprise ventures, and impact investing. These initiatives will allow us to leverage our expertise and resources to generate additional revenue, while also advancing our mission and impact.

We are also focused on building and strengthening our partnerships with key stakeholders, including foundations, corporations, governments, and individual donors. By cultivating long-term relationships with these partners, we can secure more predictable and sustainable funding, as well as access to new resources, networks, and opportunities.

In addition, we are investing in organizational capacity building, such as staff training, infrastructure, and technology, to improve our efficiency and effectiveness. This will help us to maximize the impact of our programs and services, and to build trust and credibility with our stakeholders.

Overall, our plan for becoming financially sustainable is grounded in our commitment to our social mission, and is focused on generating diversified and sustainable revenue streams that can support our operations and impact over the long term.

One of the primary work we have done is diversify our funding sources. By diversifying our funding sources, we have reduced our dependence on any single source of revenue and mitigate financial risks.