Rural Business Hub (RBH) Project In Gabehdya panchayat, Block Bundu, Ranchi, Jharkhand, Based upon Increase incomes of poor households through promotion of Lac as an enterprise by year 2012 as prime Objective.
Basics of Rural Business Hub(RBH)
In June 2004, Hon’ble Prime Minister of India introduced the concept of Rural Business Hub(RBH) as an initiative towards increasing rural incomes, getting rid of chronic mass poverty and giving control to the local levels to plan for themselves. RBH initiative works on the platform of 4 Ps i.e. Public-Private-Panchayat Partnership. In this effort, industries will contribute product differentiation, marketing and other professional skills and rural entrepreneurs will produce standardised products and deliver on time so that they reach wider National/International markets.
The proposed RBH will be a Public – Private - Panchayat Partnership to improve/ refine the locally available resources and produce goods to enable larger market access. The Rural Business Hubs indicates a group of entrepreneurs including farmers and artisans working together under the aegis of a block panchayat to enhance value of their products with private sector participation for greater market access and prosperity.The RBH is aimed to allow people living in communities to use their skills in manufacturing products while the Government and the private sector would render assistance on developing the products and exploring the markets in order to create jobs, income and strengthening the communities. With this initiative, the villagers will be encouraged to produce products and develop services using local know-how. The produce range would include food and drinks, herbal products, clothing, handicrafts, furniture and other items native to the rural areas of the country. Initiatives have been taken by the MoPR and CII in partnership with the State Governments to select outstanding products, boost sales and have named them as model for goods in the future.
Basics of our Project
Location : The start its intervention Udyogini-SID would focus on 17 potential villages of Gabehdya panchayat and gradually expand its area to new villages as per the resource potential identified.
Product : The product to build the intervention would be lac on different forms i.e. seedlac (Chauri) & Shellac (Chapda). The focus would be also to produce the broodlac which may increase the margins on final sale. The focus of the intervention would be to ensure quality product for a better market response and following.
Product Market : Currently since the M/s Sri Gopal Shellac Industries has agreed to be the industry partner for the project so this would act as a source company for the produce. The industry partner would be sensitized to work with a social orientation which would help the company to deal fair and also to build relationship with the community. The biggest advantage with the company would be expansion of its supply chain through the project.
Human Resources Deployment : With the current budget Udyogini will probably depute 1 professional who will directly report to the BDS Centre – Ranchi and 1 field staff who would jointly report to SID & Udyogini. Udyogini can build an incentive package for the existing staff of SID for the increased work-load due to the dual responsibility of the existing as well as the RBH. The staffs in RBH would be appointed on a salary plus incentive system where 75% would be fixed and rest would be based on performance.
Ownership Pattern : The entire beneficiary for the project would be part of a company constituted as a Producer’s Company and whole business would be run by an Entrepreneur as a profit making enterprise. The other wing of the operation would work as a society and undertake the developmental activities. This society may also generate funds from other sources which can be provided to the company as a loan to expand its business. The CEO of the producer’s company has mandatorily to be a woman who may hire an entrepreneur as a manager to run the company. The company will float shares w.r.t to the paid-up capital for which the dividends could be distributed in proportion to shares.
Withdrawal strategy : Udyogini will not stay permanently in field locations. The objective is to put in place a withdrawal strategy from the very beginning that helps Udyogini to withdraw from the field after an appropriate duration. A producers' network or association will be promoted to take over day to day management after Udyogini withdraws from the field. Udyogini will not indulge itself completely into implementation which would be taken care of by the partner NGO i.e. SID. Udyogini’s role would be prominently on building the capacities of the producers through the partner NGO on some critical functions like marketing, enterprise education and BDS etc. It is expected that even partial withdrawal may not be feasible before three years or perhaps five years.
Fund Market : All the agencies working in promotion of livelihood & micro enterprise promotion like DRDA, DFID, DCH, NABARD etc constitute the potential market for the fund support in the project.
Basics of Rural Business Hub(RBH)
In June 2004, Hon’ble Prime Minister of India introduced the concept of Rural Business Hub(RBH) as an initiative towards increasing rural incomes, getting rid of chronic mass poverty and giving control to the local levels to plan for themselves. RBH initiative works on the platform of 4 Ps i.e. Public-Private-Panchayat Partnership. In this effort, industries will contribute product differentiation, marketing and other professional skills and rural entrepreneurs will produce standardised products and deliver on time so that they reach wider National/International markets.
The proposed RBH will be a Public – Private - Panchayat Partnership to improve/ refine the locally available resources and produce goods to enable larger market access. The Rural Business Hubs indicates a group of entrepreneurs including farmers and artisans working together under the aegis of a block panchayat to enhance value of their products with private sector participation for greater market access and prosperity.The RBH is aimed to allow people living in communities to use their skills in manufacturing products while the Government and the private sector would render assistance on developing the products and exploring the markets in order to create jobs, income and strengthening the communities. With this initiative, the villagers will be encouraged to produce products and develop services using local know-how. The produce range would include food and drinks, herbal products, clothing, handicrafts, furniture and other items native to the rural areas of the country. Initiatives have been taken by the MoPR and CII in partnership with the State Governments to select outstanding products, boost sales and have named them as model for goods in the future.
Basics of our Project
Location : The start its intervention Udyogini-SID would focus on 17 potential villages of Gabehdya panchayat and gradually expand its area to new villages as per the resource potential identified.
Product : The product to build the intervention would be lac on different forms i.e. seedlac (Chauri) & Shellac (Chapda). The focus would be also to produce the broodlac which may increase the margins on final sale. The focus of the intervention would be to ensure quality product for a better market response and following.
Product Market : Currently since the M/s Sri Gopal Shellac Industries has agreed to be the industry partner for the project so this would act as a source company for the produce. The industry partner would be sensitized to work with a social orientation which would help the company to deal fair and also to build relationship with the community. The biggest advantage with the company would be expansion of its supply chain through the project.
Human Resources Deployment : With the current budget Udyogini will probably depute 1 professional who will directly report to the BDS Centre – Ranchi and 1 field staff who would jointly report to SID & Udyogini. Udyogini can build an incentive package for the existing staff of SID for the increased work-load due to the dual responsibility of the existing as well as the RBH. The staffs in RBH would be appointed on a salary plus incentive system where 75% would be fixed and rest would be based on performance.
Ownership Pattern : The entire beneficiary for the project would be part of a company constituted as a Producer’s Company and whole business would be run by an Entrepreneur as a profit making enterprise. The other wing of the operation would work as a society and undertake the developmental activities. This society may also generate funds from other sources which can be provided to the company as a loan to expand its business. The CEO of the producer’s company has mandatorily to be a woman who may hire an entrepreneur as a manager to run the company. The company will float shares w.r.t to the paid-up capital for which the dividends could be distributed in proportion to shares.
Withdrawal strategy : Udyogini will not stay permanently in field locations. The objective is to put in place a withdrawal strategy from the very beginning that helps Udyogini to withdraw from the field after an appropriate duration. A producers' network or association will be promoted to take over day to day management after Udyogini withdraws from the field. Udyogini will not indulge itself completely into implementation which would be taken care of by the partner NGO i.e. SID. Udyogini’s role would be prominently on building the capacities of the producers through the partner NGO on some critical functions like marketing, enterprise education and BDS etc. It is expected that even partial withdrawal may not be feasible before three years or perhaps five years.
Fund Market : All the agencies working in promotion of livelihood & micro enterprise promotion like DRDA, DFID, DCH, NABARD etc constitute the potential market for the fund support in the project.
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hi amit
i am working on rural tourism project in jharkhand.... i am an architect based in delhi . It will be nice to connect with u . Hope we can talk more on jharkhand.
Hi Amit..
I am an intern and working on the value chain and development of market opportunities for lac.. It would be of immense help if you could shed some light on the constraints in expanding to the domestic lac market..