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PublicPublic --Priva te Partnership ModelPrivate Partnership Model

HPCL Rasoi GharHPCL Rasoi Ghar

Challenges in LPG MarketingChallenges in LPG Marketing

Rural penetration is only 15%, mainly among rich

households

MART research conducted in 8 states showed that non-users (primarily the poor) are quite aware about benefits ofLPG,

57% of them believed that it s convenient to cook on LPG

63% felt that there is no smoke while cooking,

69% were of the opinion that food cooks faster

50% said that making tea for unscheduled guests on LPG is veryhandy.

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Proc ess Followed by MARTProcess Followed by MART

ResearchResearch

StrategyStrategy

Scale UpScale Up

PilotsPilots

Qualitative andQuantitative in 8 States

Awareness, Availabil ity andAcceptance

One district each In 3Representative States

Using Village Youth toSetup Large Numbers of

Rasoi Ghars

Marke ting IssuesMarketing Issues

Research Identified the fol lowing problems amongnon users of LPG

Affordability

High connection cost of Rs 1600 (73%)

High recurring cost for refill @ Rs. 270 (51%)

Options for cooking at low cost/zero cost e.g., firewood (93%),dung cake (27%)

Availability

Nearest place where LPG is available is town located 10 kmsaway or more (61%)

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Marke ting IssuesMarketing Issues

Awareness

Extremely low awareness about actual cost of connection(20%), most believed wrongly it cost Rs 2,000 or more

Acceptance barriers (myths)

Fear of cylinder burst

Gas leakage fire hazard

Cooking on gas results in gas in stomach.

Solution SuggestedSolution Suggested -- AffordabilityAffordability

Introduction of 5 Kg

cylinder

Initial connection cost Rs800 (against Rs 1600 for14.2 kg)

Refill Rs 95 (against Rs 270

for 14.2 kg cylinder)

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Solution SuggestedSolution Suggested -- AvailabilityAvailability

Town dealers to openextension counters inlarger vi llages (withpopulation of 5, 000 to

10,000)

Use HPCLs Petrol Pumpoutlet network in semi

urban locations,highways/arterial roads fordistributing LPG

Solution SuggestedSolution Suggested -- AwarenessAwareness

Participate in Haats

communicate anddemonstrate safe usageinstructions

Communicate price

structure of 5kg LPGcylinder (initial & recurring)

Reminder message throughwall paintings at haatboundary walls, bus stands

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Solution SuggestedSolution Suggested -- AwarenessAwareness

Conduct safety clinics

during SHG meetings.

Demonstrate procedure touse LPG gas and safetyprecautions

Finance

Chit-fund concept where

interested SHG memberscontribute Rs 100 each anddraw lottery every month,money collected buysconnection for one woman

Objec tive of PilotObjec tive o f Pilot

How to influence poor women to move away fromtraditional cooking methods.

Dispel myths associated with LPG

Clean, convenient and safe

To make women experience the benefits of LPG

Thus was conceived the concept of RASOI GHARThus was conceived the concept of RASOI GHAR

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Rasoi Ghar: The ModelRasoi Ghar: The Model

Rasoi Ghar is a communityKitchen set up in smallervillages where women

come and cook

Concept is shared amongpotential user community

through visit to the village

Local Panchayatcontributes a room (10 x10 or bigger) for the

kitchen

Rasoi Ghar: The ModelRasoi Ghar: The Model

HPCL contributes cook stoves,LPG cylinders, utensils, cookingcounter and water connection

One SHG member is appointedas caretaker

Women bring raw materials andtake away cooked food home.

They pay Rs 2 per half hour forgas usage

Caretaker woman collectsmoney which is used to orderrefill cylinders, keeps premisesclean. Her monthl y stipend alsopaid out of this collection.

The model is self sustaining andscalable

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OutcomeOutcome

Non users (BOP segment)experience the advantages ofclean, convenient, safe andhealthy LPG wi thout having tobuy a connection

Once they are satisfied, manydecide to buy individualconnections

It is a win-win model for all. Poorwomen cook food under clean,convenient and safe conditions,HPCL gets new consumers asthese women decide to buy theirown connections and thepanchayat gets a good name inthe community.

EvaluationEvaluation

NCAER evaluated the Rasoi Ghar initiative in UP

Acceptance of Rasoi Ghar by the people is quite high

(82 %)

82% users use Rasoi Ghar twice a day

6 % of the drop outs have opted for individualconnections

Those who continue to use, 20% are intending to takeindividual LPG connection in near future

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Thank YouThank You

Successful M antra in RuralSuccessful M antra in Rural

Business M ind, Social HeartBusiness M ind, Social Heart