Team Purple Final Presentation December 12, 2005
Overview 1 billion subsistence farmers Inefficient irrigation Starvation Poverty The IrriGator Pump Human-powered water pump Low cost Ergonomic Business model Economically viable Self-sustaining non-profit
IrriGator Demonstration
The IrriGator Pump Capabilities Max pump draw 7 meters Max pumping head 10 meters Max flow rate 1.25 liters/second Customer Gains 3 hour daily use, 2 acres irrigated 5x–10x increase watered land* *kickstart.org, ideorg.org -7m 10m IrriGator
Problem Poor irrigation methods* poverty malnutrition ¼ acre “Simple, low cost” pump** World poorest Provide food Generate income Current methods Well and bucket Hand + rope pumps Treadle Pumps *United Nations Water Committee **International Water Management Institute
Cost vs. Area Watered Acres Watered Cost $40 $120 $200 $80 $ Bucket Treadle Pumps Hand Pumps
Product Goal - High flow - Low cost, ergonomic -Pedal powered pump
Cost vs. Area Watered Acres Watered Cost $40 $120 $200 $80 $ Bucket Treadle Pumps Hand Pumps The IrriGator
Treadle Pumps 2 million used Commercially available IDE: 300,000 in India Money Maker: 45,000 in Kenya Specifications: 1.5 – 2.5 acres watered
Treadle Pump Analysis Treadle Pumps Stair-stepper motion Piston pumps Limited adjustment Difficult to transport Treadle Cost: $200 fsldkjf sdf
IrriGator Analysis IrriGator Pumps Recumbent bicycle motion Diaphragm pumps Seat adjustment Portable frame with wheels IrriGator Cost: $125 hello
Portable Frame Robust, lightweight frame Simple design 5 structural members Wheels and handles Corrosion resistant
Recumbent Seat Ergonomic seat Easily adjustable for height
Pedals Pedal - power Direct drive Efficient Serviceable
Pump Unit Diaphragm Self priming Injection molded Cheap parts
Quick-Connect Tubing Ahelkh d
Field Serviceable Replacement Parts Diaphragm - $3 Bearings - $0.50 Valves - $5.00
Case: An IrriGator Customer Average Income: $300 - $2000 per year IrriGator Pump: $125 Pump usage 3 hours per day 8x increase in watered land Revenue $100-$900 extra revenue per year* Salary 1.5x- 2.5x market wages* Profit Customer recoups investment 6 – 18 months *International Water Management Institute, Kickstart Organization
Global Market China: 7,000,000* Eastern India: 10,000,000* * International Water Management Institute ,000 11,000 7,000 3,000 1,000 Sales Forecast Year #
Revenue Growth - Water Partners, USAID, IMF - Manufacture in India, China - Breakeven in Year 4 - IRR: 8.3% Year 1 Year 2 Year 3Year ( ) - $250,000 Loan Manufacture Pumps Distribution Centers Sales of The IrriGator
Real problem, Real solution Customer Need 1 billion people lack of irrigation Starvation Poverty IrriGator Replaces current methods Inexpensive Ergonomic Generates revenue
Testimonial “There is no running water in my village so I've come here to check on what you are doing, to see where I could get some ideas or use your machine to pump water to my village. ” “This is easy… The cost is not bad… it's not as rigid as [the MoneyMaker prototype], you are relaxed and seated. Yours is perfect." Tinka John A rural farmer from Uganda Community Outreach Coordinator
Any Questions? Acknowledgements Joe Cronin Bob Gertsen Steve Haberek Bob Nuttal Dick Fenner Samir Nayfeh Doug Vincent Dave Wallace
The IrriGator - $125 Income/year, $100-$900* Discount rate – 15% 7 Year product life Product ROI *kickstart.org, International Water Management Institute User breakeven High estimate – 1.5 years Low estimate – 3 months Low ROI: 210% High ROI: 2700% Year $
Revenue Model
Financing –WaterPartners International loans money in countries including India. –Loans are US$25,000 - US$250,000 –must be paid back in 3 years; 5% interest.
Product Cost High Estimate = $120* Low Estimate = $40* *Professors Nayfeh, Wallace, Meeker, and Doug Vincent
Target Market Eastern India Uttar Pradesh, Bihar 10,000,000 potential customers
Non- Profit Structure Mfg & Assm Plant China Mfg & Assm Plant India Water Partners International [ $ loan ] Distribution Centers - IndiaDistribution Centers - China
Flow Characteristics