Mother Earth

An inclusive business model…

Indian creative industries communities trapped

• 200 million rural artisans (estimated) live with income at under 2$ per day

• Large scale distress urban migration – Loss of artisan heritage– Overcrowding of urban areas leading to

scant opportunity– Further depression of wages

• Artisan families not able to– Own more of value chain– Scale up production

• Caught in a “Malthusian Trap”– Over-reliance on middle-men– No connection to actual market needs– Alienated from best practices & evolving

technology

Changing Markets, Changing Demographics• Urban Indian growth at 7.5% +

• 320 million additional people to enterthe Indian consuming class by 2015

• The worlds fastest growing organized retail market

• A new group of consumers emerging from small town India who are rootedin ethnicity yet aspire for modernity

• India has the worlds largest artisanal producer population

• However Indian creative industries manufacturing sector has just 2% global market share

• The need of the hour is to build models that move artisans up the value chain, so their incomes increase substantially

Mother Earth can connect the dots

• Has retail presence in Home, Fashion, Food and provides sustained business at fair wages to producer groups it helps incubate

• Scaling up markets across India, using Future Group’s retail network alongside own flagship stores as well as building a strong export business.

• Is incubating artisans owned production units (BIGs- Business Interest Groups) supported with common facility centers, access to working capital and sustained markets

• Is technologically enabling BIGs to connect to urban and global retail through market information, training, design & quality inputs

• aggregation through apex bodies for producers

The Market- The Customer, The Brand

6 Mother Earth stores

2 Franchise stores

42 Shop in shops at Shoppers Stop, Home Stop, Central, Home Town

Wholesale and distribution within India to E commerce sites such as Flip Kart, Jabong, Myntra

Exports- TJX, Pier1

Production Through Artisan Owned Business Interest Groups

20 Business Interest Groups incubated internally have supplied, 1 mil USD, 40% of the purchase of ME in 11-12

Product wise Break Up• Natural Fibres 8 BIGs• Gift & Décor 4 BIGs• Home Textiles 2 BIGs• Apparel 2 BIGs

Support services provided to BIGs Market Access Modern DesignFinancial AccessImproved Raw Material SupplyImproved TechnologyFinancial and Production Planning Value Engineering Improved process flow

The Equitable Supply ChainMother Earth

BIG1

• Direct to Urban Consumers• Marketing/PR• Brand Development• Feedback loop for new product design• Supply Chain Management • Artisan ownership in brand,10% @ par

• The Producer Companies collates benefits for BIGs clustered under them, state wise.

• Ensuring Social Security and work benefits• 100% Producer owned

• 100% community owned groups organized as SHGs/small enterprises

• Produce high quality products • Are linked across-skills to create multi material

products• 100% producer owned

BIG 1BIG 2 BIG 2Business Interest Groups

Producer Company Karnataka-Bangalore, Hubli

Producer Company Tamil Nadu-Erode, Dharmapuri

Producer Companies

Mother Earth

Scaling Up the Equitable Supply Chain – Building on PPP

BIG 1

Producer companies to be formed with artisans under GOI cluster projects being implemented by Industree Foundation in 8 states

Main GOI partner current is Ministry of Textiles- DC (Handicrafts)- Theme Cluster &Mega Cluster schemes

Prospective

Ministry of Commerce- Production Parks National Livelihoods Mission- Innovative Projects & Natural Resource ManagementMSME- Cluster ProjectNABARD- Nab Fin, Nab Cluster schemes

BIG 3BIG 2 BIG 1

Producer Companies in Rajasthan,Uttar PradeshBihar West BengalOrissaAndhra Pradesh

foundation

Social Mobilization, Skills & Design Training,Enterprise set upMarketing linkageFinancial ManagementLeadership BuildingWorking capital, Social security, PF ESI, Gratuity and bonus sharing for Producers

The Eco System at a glance

WORKING CAPITALMesofinance

SKILL BUILDINGInvestment

NSDC

SGHs/BIGsSHGs/BIGs

WORKING CAPITALApex Producer Institutions

Bank Finance, NAB FIN INFRASTRUCTURE PPPs

MARKETSMother EarthInvestment FV

Consumers

Industree Foundation

Consumers

WIN WIN WIN WINGet access to quality, affordable, local products that improve artisan lifestyles

Get consistent supply of innovative products that are in lockstep to changing consumer tastes

Get increased earnings, consistent markets, access to working capital and infrastructure loans, constant product innovation support, ownership of shared production units

Socially, Economically, Culturally and Environmentally sustainable practices

CONSUMERS

RETAILERS

ARTISANS

SUSTAINABILITY

Mother Earth’s innovative social enterprise modelMother Earth is a brand promoted by Industree, 18 year history in the social enterprise space. A pioneering & innovative hybrid model. The for profit- Industree Crafts Pvt. Ltd now rebranded Mother Earth was formed in 1994. Non profit Industree Foundation instituted in 2000.

products

Enterprise Set Up Schemes and Projects of Govt. & Dev Agencies

INDUSTREEFOUNDATION

ProducerGroups

BIGs

Markets•Own Stores

•Other retailers•Exports

Design & Skill BuildingSelf Help Group Development.Working Capital AccessSocial Security

products

funds

Retail, Distribution

Exports

Design, Merchandising,

Warehouse Finance ,MIS,

QC, HR, IT

Supply Chain Mgmt

Mother Earth

Our strong financial projections impact artisans

USD 2012 2013 2014 2015 2016

Mother Earth Sales 3m 5m 9m 19m 38m

ME annualPurchase 2m 3m 5m

11m22m

Annual Buyingfrom BIGs 0.70m 1.4m 2.6m 6m 12m

Annual buying from Small artisans, coops etc.

0.35m 0.7m 1.2m 3m 6m

No of artisans in BIGS 200 400 700 1500 3000

# of artisans, directImpact at finished product level

3200 4000 6000 12000

20000

Artisans Net Income 0.31m 0.6m 1.1m 3m 6m

Management Team ready to deliver results

Management TeamNeelam Chhiber, Social Entrepreneur of Year 2011 Co Founder and MD, Industrial Designer,

NID Global Social Impact Incubator AlumunusPiyush Deogirikar, COO

14 years of retail and distribution experience MBA, IIMB160 employee strong organisation,MentorsMr. Kishore Biyani, MD, Future Group, India's leading retailer, awarded International Retailer

of the year by National Retail Federation, USA 2006

Join this game changing venture

• Growing Indian retail market generating record sales in brands rooted in “affordable design”

• Mother Earth is uniquely positioned to capture this market and uplift artisan lives

• Backed by production infrastructure it is enabling producer groups across 8 states, in partnership with GOI

• With working capital access , in 5 years, we can reach 20,000 artisans directly and an additional 30,000 indirectly aggregating USD 10m USD incomes for artisans

Thank you!