A nshu final project 20140418-120958

Socio-Economic Impact Assessment 2012

1

Title of the project:

“Socio- Economic Impact Assessment of the Women Empowerment Projects”

Division: Social Investment

Corporate Social Responsibility

Project: Sunehra Kal

Sub Project: Women Empowerment

Final Report

Research Timeline: 26th march – 15th June

Submitted by:

Anshu Singh

The Energy Resource Institute

Roll No. 1002 MPD

Degree of Master of Arts in

Sustainable Development Practice


2

ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and

supported us during my major project at Social Investment Division, ITC

Limited.

My deepest thanks to Internal Supervisor Professor Suresh Jain and

External Supervisor Mr Jayant Kumar, Regional Manager at CSR division ITC

Ltd and professors Dr. Mala Reddy and Dr. Smriti Das, our course coordinators,

for the support and guidance they gave me before and during my project. I

express my thanks to Teri University for support and allowing me to be part of

this dynamic institution. Also I am grateful to the Social Investment Division at

ITC Limited for giving me valuable insight on impact assessment tools and

giving me foundations on project evaluation procedures.

I also would to express deep appreciation to the villagers of Munger

District who forgo their precious time and energy and for their co-operation

during the impact assessment. I would also like to convey my deepest thanks to

various field workers for their suport.

We would like to express our whole-hearted thanks and appreciation to

Self Employed Women Association for their support.

I would also thank my Institution and my faculty members without whom

this project would have been a distant reality. I also extend my heartfelt thanks to

my family and well wishers.


3

Research Abstract

This study assesses the Socio- Economic Impact of the Corporate Social Responsibility Project

on the Social and Economic Empowerment of Women and its implication. The need to evaluate

the project’s effect in terms of empowerment arises due to the perception that intervention in

the form of projects has effects on women development in the province due to institutional and

cultural factors. Different types of assessment tools have been used by the researcher in order

to identify the key impacts in the grass root level. The project areas were divided into clusters

so as to study the effect of the project in the community at different level. The project aims to

provide useful insights into the issues of women empowerment. The research outcome and

findings will help to evaluate the improvements in the indicators such as capacity building,

access to micro-credit, involvement in economic activities and mitigate the negative impact.

This report will help to monitor and evaluate the overall impact of the project in th e

intervention area. The report also provides the recommendation for the identified problem in

the area. The recommendation focuses upon the need for design intervention at grass root level

which intends to have positive effect on the project beneficiaries.

Keywords: Socio-Economic Impact Assessment, Corporate Social Responsibility, Women

Empowerment, Project Evaluation, Project Beneficiaries.


4

Table of Contents Chapter 1

i. Project Introduction ................................................................................................ 8

ii. Research Background ............................................................................................. 9

iii. Project Description ................................................................................................. 9

Chapter 2

iv. Research Objective ............................................................................................... 10

v. Purpose and Goal .................................................................................................. 10

vi. Research Question ................................................................................................ 10

vii. Research Methodology.......................................................................................... 11

viii. Study Design ........................................................................................................ 12

ix. Sampling Procedure .............................................................................................. 13

x. Limitation of the Study…………………………….………..……..………………….14

Chapter 3

xi. Structure and Performance of Project SHG’s ......................................................16-18

xii. Comparative Data Analysis ( Project Vs Non-Project SHG)……...…...........…….19-27

Chapter 4

xiii. Socio Economic Impact Assessment .................................................................28-29

xiv. Scoping Matrix ………………………………………………....………………....30

Xv Findings …...............................................................................................................32-37

Xvi Logic Model……………………………………………………………………….38-39

Xvii Case Study ………………………………………………………………………..40-43

Xviii Research Outcome & Challenges…........................................................................44-47

Chapter 5

xvii Recommendation 1………….…………………………………………………..48-51

Xviii Recommendation 2……………………………………………………………...52-53

Xix Conclusion …………….......................................................................................54

Xix References…………………………………………………………………….…45

Chapter 6: Annexure

Annexure 1 Survey Questionnaire ……………………………………………….….56-58

Annexure 2 Sample Selection…………………………………………………...……59

Annexure 3 Research Assessment tool…………………………………………...….60

Annexure 4 Project Area…………………………………………………………….60

Annexure 5 Scoping Matrix……………………………………………………….....61


5

List of Tables

Table 1: Sample Frame for the SHG Study

Table 2: Sample Frame for Project Impact Assessment

Table 3: Stratification of the Sample

Table 4: Structure of Self Help Group

Table 5: An analysis of factors Responsible for SHG formation

Table 6: SHG Savings on bank as on April 2012

Table 7: SHG per Member Saving in bank as on April 2012

Table 8: Loan Operation

Table 9: Loan Repayment by SHG

Table 10: Level of efficacy of Project Vs Non Project SHG

Table 11: Beneficiary Assessment

List of Figures

Fig. 1 Project Activities

Fig. 2 SHG saving on bank as on April 2012

Fig.3 SHG per Member saving in bank as on April 2012

Fig.4 Loan Operation

Fig .5 Loan Repayments by SHG

Fig .6 level of efficacy

Fig.7 Member timeline

Fig. 8 Production timeline

Fig.9 Socio-Economic Impact Assessment in the Nutshell

Fig.10 Agarbatti Problem Identification

Fig.11 SHG Problem Identification


6

Abbreviation

ITC Indian Tobacco Company

CSR Corporate Social Responsibility

SHG Self Help Group

MSK Micro Finance

P1 Project SHG

P2 Non-Project SHG

SEWA Self Employed Women Association

NGO Non Governmental Organization

SUSSSL SEWA Udyogic Swablambi Sahkari Samiti Limited

SEIA Socio Economic Impact Assessment

WE Women Empowerment


7

Chapter 1: Project Introduction

The Project Sunhera kal intends to empower people and communities in the

rural India developing natural resources and generating employment by

focusing towards sustainable community development. With various sub

projects under the umbrella project Sunehra kal aims to create capacities and

assets particularly empowering women to return community to the path of

sustainable economic and social development of the community.

With this objective ITC under its Corporate Social Responsibility has

successfully launched the Women Empowerment project in Munger district of

Bihar under mission Sunhera Kal in 2004. Whereby ITC aims to generate

employment and engage local women in the Agarbatti rolling activity in order

to empower these communities making them economically stronger so that they

are able to return communities to the path of economic growth and social

vibrancy. In Munger district, agarbatti making has emerged as a thriving home

based income generating activities.

ITC aims to bring about the sustainable economic opportunities to poor rural

women by mobilising these local women to form Self help groups, helping

them to save and engage themselves in other income generating activities.

With ITC’s support, SEWA Bharat provides raw materials and trains them to

roll agarbattis to specified standards. Then the raw materials are collected by

individuals rollers to a network of collection centres located in the three areas in

the district namely mai, Fauzdari Bazar and Phulkia centres. These centres are

also responsible for sorting Aggarbttis according to the ITC quality parameters.

These are further assessed by experienced rollers to maintain strict quality

control before onward dispatch to the scenting unit were the Agarbattis are

further collected, scented and packaged for further afield.

Earning between Rs.600 –2,000 a month, there is a new confidence among the

744 women actively engaged in Agarbatti rolling. With a steady income and

savings they are in a position to support their families financially. Coming

together to form Self-help groups, equipped with skills to manage their own

finances, women are growing economically and socially more stronger and

stepping forward to catalyse change within the communities.


8

Research Background:

The need of the hour is to diversify rural livelihoods. Towards this end, ITC has

forged an empowering partnership with rural women – the most effective

development workers. ITC’s intervention leverages micro-credit and Agarbatti

rolling to generate alternate employment opportunities. Increased income in the

hands of rural women means better nutrition, health care and education for their

children. The Women Empowerment Program currently has over 300 SHG’s

with over 3000 members. It has created over 11,000 livelihoods till date.

Brief description of the Project Activities:

The activities under the project are described in the diagram. The activities

under the Women

Empowerment Project

include Hand Rolling,

Machine Rolling, Dust

Rolling and Packaging of

ITC Mangaldeep

Agarbattti. The project

activities also include

creation of Successful Self

Help Group in the project

intervention area.

There are more than 500

women employed in the hand rolling of Agarbatti, 60 women each in the

machine and dust roll process and 44 women engaged in packaging of

Mangaldeep Agarbatti. A total of 72 SHG formations has been done till date in

the project area. The ITC discharge its social responsibility activities efficiently

by linking its project to various national and state NGO’s. The various NGO

linked with the Project are SEWA, IGS, VIDS and Disha Vihar. The project has

proved to be as the change agent and has been successful in transforming the

lives of the women in Munger district of Bihar. Thus the project aims to uplift

the social and economic condition of the women in the society. The project not

only helps in generating employment opportunities locally but also making the

women socially and economically stronger.

Project:

WomenEmpowerment

MachineRoll

Dust Roll

PackagingUnit

Self HelpGroup

Hand Roll


9

Chapter 2:

Research objective:

1. The main objective of the project is to develop in depth understanding the

efforts made by ITC in discharging Social responsibility through its Women

Empowerment project in Munger

2. To identify and assess the Socio-Economic impact of the project

3. To study the structure, conduct and performance of SHGs promoted under

the project

4. To increase the awareness level of participating community for sustainable

self-help development

Purpose and Goal of the study:

1. Assessing the socio-economic impact on the women who are a part of the

SHG’s.

2. Analyze factors that impact the production of Agarbatti in the different

groups

3. Level of efficacy of project SHGs compared with respect to. book

maintenance, internal lending, regular savings, external loan mobilization

and repayment

4. Comparison of project SHGs with non-project SHGs for all the above

parameters

5. Understand the perception of the women on the loans provided by the

project- if any perceived benefits

Research Question:

1. Is ITC able to discharge social responsibility effectively under its women

empowerment project?

2. What are the social and economic benefits of the project?

3. How successful is the project in terms of creating Socio-Economic Impact

in the intervention area?

4. Is the project able to generate social and economic empowerment of the

women as a whole?


10

Chapter 3:

Research Methodology:

This paper helps to analyse the socio-economic impact and to assess whether

the project has been able to achieve its basic objective (whether the social and

economic empowerment of women increases their overall empowerment

automatically).

The study Design: This was a comparative social diagnosis study exploratory

in nature. Focus Group Discussions were held at all the SHG level to

supplement the quantitative data, collected through interview schedules. The

women engaged in the Agarbatti making were also part of the semi-structured

interview to assess the socio-Economic Impact Assessment of the Women

Empowerment Project under ITC as a part of its Corporate Social

Responsibility. A few case studies are also included in the study to highlight the

level of empowerment of women achieved in different aspects of the study

Participatory Assessment Method: The Participatory Assessment

methodologies such as participatory rural appraisal and Beneficiary

Assessment, Survey and the FGD’ were the part of the method. These

methodologies provide linkage with the local people in analysis and planning

and can contribution to the development of action plans and participation

strategies. (For survey questionnaire refer annexure 1)

Workshop Based Method: Regular stakeholder meeting and workshop were

conducted to assess the issues in the project. Regular meeting with the NGO’s

engaged with the project.

Methods and Tools of data collection:

1. Pre-tested Interview schedule was used for primary data collection from

members of the SHGs

2. Semi structured FGD guide was used to collect relevant data from the

Leaders of SHG and their federations to supplement the quantitative data

3. Case Studies for highlighting the achievements of some SHGs in women

empowerment

4. Semi-structured interview with the women engaged in the Agarbatii rolling

5. Observation schedule used for Personal Observation


11

The Sampling Method

Multi-stage, simple random sampling method was used for the study at various

levels. (Refer annexure 2)

Stage 1: At this stage, selection of a region was done with geographical

stratification. For the purpose of this study, the Munger district was stratified

into two areas, namely Urban and Rural Area

Stage 2: At the second stage, sampling was done for selection of the NGOs

engaged with the project in the Munger district of Bihar. The list of prominent

and reputed NGOs with good track record, and having sufficient experience in

promoting SHG system and Agarbatti making Activity was gathered with the

help of ITC. Simple random sampling method was used for the selection of a

NGO engaged in the project.

Stage 3: At the third stage, selection of 50 SHGs from the selected NGO was

done using simple random sampling. Thus, a total of 40 SHGs were selected

from as Project SHG and Non- Project SHG were identified. A total of 20

projects SHG and 20 non-projects SHG were classified.

Stage 4: At the last and final stage, the total of 593 members of SHG’s was

selected for the study of SHG. A total of 278 and 315 members of project and

non-project SHG were interviewed respectively.

Sources of Data:

The source of primary data was from the 593 respondents from 40 SHGs of the

1 NGO engaged in women Empowerment Project in Munger.

The Secondary data were gathered from reports, minutes of the meetings,

attendance register, and accounts registers, other relevant documents and

register maintained by the SHGs under the NGO named SEWA.


12

Sample Size:

Table 1: Sample Frame for the SHG Study

Sampling : Multi stage Random sampling

Total SHG Surveyed : 50 Groups

1. Cluster 1 Urban Area:

Project :

Non- Project :

22 Groups

10 Groups

12 Groups

2. Cluster 2 Rural Area:

Project SHG :

Non-Project SHG:

28 Groups

20 Groups

8 groups

Project SHG:

Member :

30 Group

337 Member

Non-Project SHG :

Member :

20 Group

315 Member

Total no. women engaged in the

project:

Total women not engaged in the

project:

337 Women

315 women

Sample Study: N= 20 Project SHG

274 Women

Sample study: N= 20 Non project SHG

315 Women

Table 2: Sample Frame for Project Impact Assessment

Project SHG member 337

Agarbatti Making Hand roll: 70

Machine Roll: 30

Sorting Unit: 34

Scenting Unit :44

Godown: 2

Total Women: 180

Total Women Engaged in the project 337 + 180 = 517 Women


13

Table 3: Stratification of the Sample according to Model and size of SHGs

group per member

Category/

Group

member

Project SHG

group

Non- Project

SHG Group

Project SHG

Member

Non-Project

SHG

member

9 1 0 9 0

10 1 1 10 10

11 1 0 11 0

12 3 2 36 24

13 4 3 52 39

14 2 0 28 0

15 2 2 30 30

16 3 3 48 48

17 1 3 17 51

18 1 1 18 18

19 1 5 19 95

Total 20 20 278 315

Data collection procedure

Based on the objective of the study an interview questionnaire was prepared.

The total of 50 SHG was interviewed and surveyed against the 40 SHG’s. That

is 10 SHG’s were pre-tested in the study area on 8 project SHG’s and 2 project

Non-SHG’s. Later on the remaining 20 project and 20 non-projects SHG’s were

interviewed. Based on the experience gained during pre-testing necessary

correction and modification were done especially to ensure that the instruction

and question were clear and unambiguous. The final step of data compilation

was used to collect information regarding the various factors and analyse them

in order to assess the efficacy of the project and non-project SHG.

Limitations of the study

The present study was undertaken as part of the requirement of the post

graduate programme of the student’s research, so there were constraints of time

and other resources and therefore some issues could not be explored in greater

depth in a comprehensive manner.

Also, only women self-help groups and the Agarbatti rollers were taken into

consideration for the study. Therefore, the findings cannot be generalized for all

types of SHGs and locations. Data availability and data filtration are the major

constraint of the study.


14

Chapter 4: Statistical Analysis

The Chapter comprises of Structure and Performance of the

Project Self Help Group. The other part of the chapter

include Comparative Analysis in order to measure efficacy

of Project SHG Vs Non-Project SHG’s. The Sources of data

used for the Statistical Analysis are Primary Data and Co-

ordinating NGO Record book. These data are further useful

to carry out the impact assessment of the Project.


15

Structure, Conduct and Performance of Project SHGs

1. Formation of SHG in the intervention area:

The SHG were formed in the project intervention area with the help of

NGO’s whereby the NGO’s were expected to motivate rural people to

organize themselves to form into Sel Help Group at village level. The other

factor was to educate, train the group member in managing the group

activities like maintenance books of accounts conducting meetings and

management of the records etc. Apart from this SEWA are also try to

inculcate, promote and thrift and saving habits among the group members

and to help in the institution building along with the development of

individual. During the process SEWA also helped in identifying local

resources and boost other income generating activities in the project

intervention area by upgrading their skills and imparting the training of

Agarbatti hand rolling and machine rolling to make best use of resources.

Apart from this SEWA also helps in availing credit facilities and to act the

link between rural poor and the bank. The other factor was to educate the

group member and train group members to utilize the credit properly and to

improve their economic conditions. SEWA also act as a facilitator in the

meeting of the project SHG.

2. Structure: This part gives us the details of the various group formations of

the project and non-Project SHG.

Year of formation Project SHG Non-project SHG

2003 4 -

2004 2 -

2005 4 -

2006 2 -

2007 1 -

2008 5 -

2009 10 -

2010 2 12

2011 - 7

2012 - 1

Total 28 22

Table 4: Structure of SHG


16

The project SHG was formed with the help of ITC support in the year

2003.The above given table describes the project and non-project SHG

facilitated by the NGO SEWA.

Thus the total of 20 SHG from project SHG and the total of 20 non-projects

SHG running in the intervention area was chosen for the comparative

analysis to measure the level of efficacy of the SHG’s in the project area.

3. Factors Motivating SHG’s in the intervention area: In order to study the

factors which motivated the women to form self help group were studied

based on the nine broad parameters. These parameters were further

compared to the existing bank in the district and the money lender. These

parameters helped us to identify why SHG’s are gaining edge over bank and

money lenders. Te table below shows the comparison of SHG with the bank

and money lenders to show how the women are more and more engaging

themselves and are ready to form SHG’s.

Table 5: An analysis of factors Responsible for SHG formation

Parameter Money Lender Bank SHG

Ease of access High low Very high

Transition cost of access low high Very low

Lead time for loan short Long Very short

Repayment time Fixed/rigid Fixed/easy Fixed/flexibility

Interest rate Exorbitantly high

(10%)

Low/affordabl

e/ subsidized

Reasonable/

affordable (2%)

Repeat borrowing possible Possible/not

likely

Dependable(

Previous loan

/savings)

Loan access procedure Very quick Time

Consuming

Easy/quick

Loan application

procedure

informal Complex Formal

Demand promissory note Mandatory Required Not required


17

In terms of accessibility the SHG has proved to be very high because of its

formation and member residence in the same area. Therefore due to its easy

accessibility the transaction cost required to save and withdraw from the

bank is very low or almost nil in compared to bank and the money lender.

The time taken to give loan is also minimum because the loan is given to

the member required in the each monthly meeting of the SHG’s, all is

required is the permission of the respective members of the SHG’s.

The loan repayment time of the SHG’s are fixed for 10 months with the

reasonable interest rate of 2 percent on the remaining principle amount of

each month, if the member is not able to repay within these 10 months then

he will be counted as the defaulter and the interest rate will be doubled to 4

% which is still comparatively lower than the interest rate charged by the

bank and the money lender.

The member is flexible to avail for the repeat borrowing given that he has

paid the previous loan and the loan amount must be less than the amount the

member is seeking to avail. The loan access procedure is formal and very

quick in comparison to the Bank and Money Lender.

Therefore with low rate of interest and flexibility in savings the SHG has

gain significance importance in the project intervention area.


18

Economic Performance of the Project Vs Non-Project SHG:

1. Savings in bank as on April 2012: The table below shows the number of

SHG savings in bank according to the category project and non project

wise. Where P1 indicate the project SHG and P2 indicate Non-project SHG.

Table 6: Savings on bank

Savings Project SHG (P1) % Non Project SHG (P2)

%

0- Rs 5000

9 45 10 50

Rs 5100-10000 3 15 2 10

Rs 10,100- 15,000 5 25 4 20

Rs 15,100- 20,000 2 10 1 5

Rs 20,100-25,000 1 5 2 10

Rs 25,100-30,000 0 0 1 5

Total 20 100 % 20 100

%

Source: Primary data

It was observed that majority of the project and non project SHG were having

saving less than Rs. 5000. Were 50% of Project SHG and 45 % of Non-Project

SHG have savings below Rs. 5000 but adding to the credibility of project SHG

about 15% of the women have

saving between Rs 5000 to

10,000 whereas only 10% of the

non project SHG has the saving

between 5,000 to 10,000 Rupees.

10 % of Project SHG has saving

Between 20,000 to 25,000

Rupees. This shows that the

project SHG has the capacity to

save more given that the

members are regular in their

monthly savings.

45

15

25

105

0

50

10

20

510

5

0

10

20

30

40

50

60

% o

f m

em

be

r

Savings in Rupees

Saving in Bank / SHG

P1

P2


19

2. Savings in bank per member as on April 2012:

The table below shows the Savings per member in the bank of project as

well as non- Project SHG.

Table 7: Saving in bank per member

Source: SEWA Record Book and Primary data

When we compare the per member savings in bank of the project as well as

non-project SHG the project SHG is again in the better off position with its

member having in all the categories again showing its capacity to save even the

lowest possible value. With 22% of project SHG ha its savings between Rupees

3000 to 5000 against the non-project SHG which has its saving between 100 to

3000 Rupees only.

Source: SEWA Record Book and Primary Data

Savings

(In Rupees)

Project SHG

(P1 ) Frequency

%

Non -Project

SHG

(P2) Frequency

%

Rs 100-1000 52 18.98% 61 19.18%

Rs 1100- 2000 122 44.53% 176 55.35 %

Rs 2100- 3000 39 14.23% 78 25.47 %

Rs 3100- 4000 45 16.42 % 0 0.00 %

Rs 4100-5000 15 5.47 % 0 0.00%

> Rs5000 1 0.36 % 0 0.00%

Total 274 100 % 315 100 %

0.00%

20.00%

40.00%

60.00%

Rs 100-

1000

Rs 1100-

2000

Rs 2100-

3000

Rs 3100-

4000

Rs 4100-

5000

> Rs 5000

% w

om

en

wo

me

n

Savings in Rupees

Saving/Member

P1

P2


20

3. Loan Operation as on April 2012 :

This part shows the economic performance of the SHG’s in terms of loans

availed by members, loan per member dispatched and the defaulters, assessing

the number of members not able to repay on time.

Table 8: Loan Operation

Source: SEWA Record Book & Primary Data

In project SHG the total of 274 members were able to save and dispatch loans

to 194 members, where as in non-project SHG the total of 315 members were

able to dispatch loan to 159 members in the group. But the defaulter’s rate as in

the number of member not able to repay the loan in project SHG is high. 89

Project SHG members not able to pay on time because of the low saving

mechanism and less engaged in income generating activities.

Source: SEWA Record Book and Primary Data

Variables

Project SHG (P1) Non-Project SHG (P2)

Total members

274 315

Total loan

194 159

Loan / Member

144 151

Defaulter

89 45

274

194

144

89

315

159 151

45

0

50

100

150

200

250

300

350

Total members Total loan Loan / Member Defaulter

No

. o

f m

em

be

r

factor

Loan Repayment

Project

SHG (P1)

Non-

Project

SHG (P2)


21

4. Loan Repayment: This factor will help us assess how many members are

defaulters. Under this category each defaulters are divided in accordance

with the month due for repayment. The above table help us to explain the

defaulters and non-defaulters in the studied SHG in the intervention area.

Whereby the defaulters percentage is 32.48 % in project SHG as compared

against 14.28 % in the Non-Project SHG.

Table 9: Loan Repayment by SHG

Loan Repayment Project

P1

% Non project

P2

%

0-5M 34 12.40% 23 7.30%

6M-10M 22 8.02 % 21 6.66%

11M-15M 11 4.01 % 1 0.31%

16M-20M 12 4.37 % 0 0

> 20 M 10 3.64 % 0 0

Total Defaulters 89 32.48 % 45 14.28 %

Non- Defaulters 185 67.52% 270 85.72 %

Total Members 274 100% 315 100%

Source: Primary data

The total defaulter’s percentage of defaulters in initial period of loan is high

both in case of project and Non project SHG. The project SHG Defaulters

ranges from five months to more than 20 months. The Non project defaulters

are less because of its linkage with various other income generating activities.

8.02919708

4.014598544.379562044

3.649635036

6.666666667

0.317460317 0 00

1

2

3

4

5

6

7

8

9

6M-10M 11M-15M 16M-20M > 20 M

Total defaulters

% P1

% P2


22

5. Loan Utilization:

The SHG generate a common fund out of small savings, which they invest

in productive activities as in other income generating activities. The funds

generated are also used as giving loans to the members of the groups. Such

loans include consumption loans and production loans. Consumption loans

are used for household purposes and production loan are used for other

income generating activities and small business.

In the present Study , the information on fund utilized for different purposes

like health, education, consumption, house construction, small business etc

by the members of the SHG were elicited. The required data was collected

by the respondents as well as the book records maintained by each SHG and

finally frequency and percentage was calculated.

In this study the loans availed by various aspects were covered, the number

of members availed loans and the total loans disbursed by the SHG was

covered by seeing their records. Kinds of loans disbursed by SHG for

various purposes like agriculture, Social Function and small business were

recorded for group data.


23

6. Level of Efficacy

Regularity in Meeting: As per the Guidelines the group meets every weekly

for general meetings and monthly meetings for savings collection and

repayments of loans. Group meetings are supposed to be conducted with the

certain discipline in relation to regularity and time. The data hereby has been

obtained from interviewing open end questionnaire and then the percentage was

calculated for the whole sample. The chart below shows that the project SHG is

more efficient in terms of organizing and conducting meetings as per scheduled.

Source: Primary Data

Regularity in Savings: In the present study saving habits of SHG’s refers to

the total group savings of SHG member in the given date. This information was

sought by asking the respondents directly during the SHG meeting of April and

also by seeing their record maintenance for the period of April 2012.Again the

savings per member as on fixed date is comparatively higher than the non-

project SHG’s were the saving per person percentage is 74.92. Thus the person

miss out the saving is 12.4 % against the 25.97 % of non-project SHG.


25

50

100

0 0

100

0

50

100

150

Weekly Fortnightly Monthly

% o

f M

em

be

r

Schedule meeting

Meeting/SHG

P1

P2

87.5974.921

12.4

25.979

0

50

100

P1 P2

% O

F M

EMB

ER

Project/Non-Project SHG

Saving Contribution

Fixed

date

Skip


24

Attendance: According to the study conducted in the Munger District of

project and non-project SHG. There were 80 % attendance reported by the

project SHG and were as non project SHG has the 50% attendance as on april

2012. It was reported that regularity in attending meetings and saving habits

was a disciplinary measures in Project SHG’s. Whereas 20 % of non-project

SHG reported attendance below 25 %


Loan Repayment: The repayment rate was calculated with the help of the

review of record book of each SHG’s maintained by each SHG as well as the

facilitated NGO named SEWA. The percentage of project SHG not able to pay

loan within 10 months was as high as 32.48 % as against 14.28 % of defaulters

in the non-project SHG’s. Whereas the percentage of member not included in

the defaulters list is 15 % for project SHG’s as against 4.76 % of non-defaulters

out of total sample.


80

20

0

50

3020

0

20

40

60

80

100

100-75 50-75 < 25

% o

f w

om

n

% present

Attandance /SHG

P1

P2

32.48

14.2815.32

4.76

0

5

10

15

20

25

30

35

P1 P2

% O

F M

EMB

ER

Project/Non-Project SHG

Loan Repayment

Defaulters

Non-

Defaulters


25

Bank Transaction:

Majority of the members had experienced bank transaction. In the project

SHG majority of the members have visited the bank for the purpose of

saving the monthly amount collected and/or to withdraw the total sum to be

given as loan to the member of the related SHG.

Similarly in the non-project SHG the bank transaction i.e. the withdrawal

and saving is being dominated by one or two members in the SHG group.

Decision making pattern:

In the Project SHG there was democratic type of decision making pattern

followed by the non-project SHG groups which more often consider one or

two member in the group while taking decisions and other would follow.

In project SHG, cent percent groups were considered while taking decision

all members were consulted.

In non-project SHG majority of the groups are not considering all the

members’ decisions and minor percentage of group were consulting all the

members while taking decision.

Loan availability:

In this study, the loans availed for various aspects were covered and

described earlier. The Loan availability as described earlier under the

economic performance of SHG’s also help us to assess the effectiveness of

the SHG in terms of the fund availability and its utilization by the SHG

members.

Record maintenance:

All the SHG i.e. both the project and non-project SHG were maintaining

records in the systematic manner. The records were either maintained by the

literate member in the group or the president of the group or the concerned

NGO. The study also recorded that maintenance of records, group leaders

were playing a major role because the other members have faith in the

group leader or in some group it was recorded that the members avoid

taking responsibility as well.


26

Table 10: Level of efficacy of Project Vs Non Project SHG

Level of Efficacy of SHG's (March/April 2012)

SL.No Particulars P1 P2

frequency % frequency %

1 Meeting

Weekly 5 25 0 0

Fortnightly 10 50 0 0

Monthly 20 100 20 100

2 Attendance

100-75% 16 80 10 50

50-75 % 4 20 6 30

< 25 % 0 0 4 20

3 Contribution of saving

Fixed date 240 87.59124 236 74.921

Skip 34 12.40876 79 25.079

4 Loan Repayment

Defaulters 89 32.48175 45 14.286

Non-Defaulters 42 15.32847 15 4.7619

5 Writing of group record

Member YES _ _ _

Patner NGO YES _ YES _

6 Bank transaction

All member transacted NO _ NO _

Majority YES _ _ _

Few /single _ _ YES _

7 Decision making pattern

All the members have

say

YES _ NO _

Domination by 1 or 2

members

NO _ YES _

8 Loan availability

Very good YES _ _ _

Good _ _ YES _

Bad _ _ _ _

9 Record maintenance

Well maintained YES _ _ _

Moderately maintained _ _ YES _

Not well maintained _ _ _ _

10 Income generating

activities

YES _ YES


27

Chapter 4:

Socio-economic Impact Assessment

The Chapter gives us the final Findings and research

outcome. The chapter consist of the scoping matrix and

Beneficiary Assessment which is used measure the Project

impact qualitatively. It includes brief findings about the

microfinance and Agarbatti Project. The chapter also

discusses the challenges of the project ahead. It also

focuses on the case studies to illustrate the success of the

Women Empowerment Project.


28

Common Questions arising while conducting Socio- Economic Assessment

Who are the stakeholders?

Are project objectives

consistent with their needs,

interests, and capacity?

What social and Economic factors

affect the beneficiaries or benefit

from the proposed policy or

project?

What social risks might affect

project or program success?

What is the impact of the

project or program on the

various stakeholders,

particularly women and

vulnerable groups?

Are there adequate plans to

build the capacity required at

the appropriate levels?


29

Why Socio-Economic Impact Assessment (SEIA)?

Socio-economic impact assessment (SEIA) is a useful tool to help us

understand the potential range of impacts of a project activity on the

intervention area, and the likely responses of those impacted if the change

occurs. It is used in order to assess impacts of a wide range of types of change

recorded due to project intervention. This understanding can further help the

stakeholders to design impact mitigation strategies to minimise negative and

maximise positive impacts of any change.

It is important to determine not only the full range of impacts, such as changes

to levels of income and employment, access to services, quality of life, but also

the implications of each particular change. Impacts of a project are also distinct

from, though influenced by, other activities which may be occurring under the

same project. It is important therefore to identify the key source of impact and

to separately identify impacts arising from other sources.

While social impact assessment and economic impact assessment are often

undertaken separately and employ specific methods, they are complementary

and sometimes overlap. For example, in the women empowerment project

social assessment may examine demographic change; however an economic

assessment may place emphasis on workforce information while a social

assessment may also be interested in population change.

An integrated approach can provide a comprehensive and cost effective

outcome, providing information on potential economic impacts as well as

important social values attached to the activity which inform likely attitudes

and responses to the proposed change.


30

Scoping matrix

The ‘scoping’ phase establishes the goals and boundaries of the assessment and

focuses the SEIA on key impacts. The scoping stage also considers the level of

community participation or involvement in the SEIA. The socio-economic

activities thus identified during beneficiary assessment is used to construct the

matrix of activities by area will be done together with list of specific activities

included under the project. Shortened versions of some of the activity headings

are used in the matrix itself. Many of the activities listed lead to additional

knock-on socio-economic benefits. The purpose of this report to analyse the

activities under the project in detail and to provide an overview of the types of

activities directly linked to the socio-economic development of the women of

the areas listed. The detailed Scoping matrix is attached in the annexure 5 of

the report.

The matrix therefore is divided into project activities on the Y-axis and the

Socio-economic factors on the X-axis. The S-E factor is further divided into 4

areas comprising of social status, social Infrastructure, economic Factors and

others. The factors will be judged on the basis of 5 rating scale comprises of

positive, medium, low, negligible and negative impact. There are 15 identified

areas under the project activities and a total of 31 factors to be judged under the

rating scale of 5.

This will help us to identify qualitatively as were the project has impacted

positively and negatively. It will further help us to identify and assess the risk

involved in the project as well. The project shows a positive impact on the

employment generation, income level, expenditure on consumption of food,

saving, lending, asset creation and debt reduction and capacity building. As far

as social factor was considered it record a medium impact on the women in

terms of equity and equality. Low impact was recorded in the areas of social

mobility, willingness to work and motivation factor of the women engaged in

hand roll. The risk hereby lies in the negative impact on the project is the self

purchase model under the hand roll activity, whereby women are not interested

in the purchase of raw material by themselves and feel that it will indirectly

affect their wage


31

Findings: Project Self Help Group

1. Structure and conduct of SHGs especially with reference to size,

homogeneity, conduct and attendance of meetings, record keeping, etc.,

was broadly in conformity with the guideline of the programme.

2. Varied saving products that are suitable for the rural poor were made

available for the SHG members that facilitated increased rate of saving

among them.

3. Institutional credit deepening and widening among the rural poor were

achieved to a greater extent.

4. Availing loans from moneylenders and other informal sources with

higher interest rate was significantly reduced due to SHG intervention.

5. There is perceptible change in the loaning pattern.

6. Consumption oriented loans were replaced by production oriented loans

during post SHG situations which was mainly due to SHGs and training

provided under the SBL programme

7. The incremental income was contributed mainly from farm activities

followed by nonfarm activities.

8. Employment per sample household increased between pre and post-

SHG situations.

9. There was remarkable improvement in social empowerment of SHG

members in terms of self-confidence, involvement in decision-making,

better communication, etc.

10. NGO promoted groups edge over BANK promoted groups on targeting

weaker sections spreading SBL programme more in inaccessible areas,


32

improvement in assets, savings, income and employment generations,

capacity building and human resource development, etc. SHPI groups

performed relatively more in institutional loan repayment. There is

greater scope for BANK groups for improving the conduct of SHGs and

capacity building of its members.

11. Sustainability of SHGs was well established through the better

performance of older groups than the recently formed groups in terms of

increased value of assets and saving rate, better access of institutional

loans,

12. higher rate of repayment of loans, elimination of informal sources and

impressive social empowerment.

13. For greater acceleration of rate of economic empowerment, future

strategy must focus more and more on training and capacity building of

members besides ensuring adequate linkage supports.

14. SHGs’ role may further be enhanced through its involvement in

developmental programmes implemented in the areas.

15. While expanding the programme for wider coverage, efforts also need

to be focused on strengthening the existing groups and institutional

building such as federal structures.

16. Sustainability of SHGs was well established through the better

performance of SHG group

17. Project Activity focus more on training and capacity building of

members engaged in the project.


33

18. Self help group help in accelerating more income generating activities

in the intervention area.

Findings: Agarbatti Project

1. Members:

The average number of members involved in rolling of Agarbatti did

increase after the registration of cooperative, however, since 2008 it has

began decreasing. This trend was reversed in the year 2011-2012 and there

was 42 % increase from previous year.

Source: SEWA record

2. Production:

The increase in production was of 24 % in the year 2011-2012. A

significant increase in productivity by 36% was also seen in 2008-2009.

Hence the production has marginally increased in 2011-2012.

463

615

446

317

452

0

100

200

300

400

500

600

700

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

no

. o

f w

om

en

Year

81216

110458 111926

97942

121611

0

20000

40000

60000

80000

100000

120000

140000

2007-08 2008-09 2009-10 2010-11 2011-12


34

Source: SEWA record book

3. Employment Generation: The project has helped to develop skills and

generate employment in the district. There is total of 576 women engaged in

the hand roll activity of the project under the NGO SEWA. There are

additional 11 field workers and 4 centres in charge under the activity which

are responsible for carrying out day to day activity such as distributing raw

materials as well as payment of the Agarbatti rollers.

4. Capacity Building: To develop the organizing and leadership ability of

women workers in order to build their own organizations. The focus on

building capacity of members is paramount so that they are able to run,

control and manage their own organisation. Currently there are 14 members

in Board of co-operative, 12 out of this are roller members or SEWA Sathi

(who have risen from roller member to this level). The average number of

years spent by these members in board has been 4 years. Krishnaben,

Sulochanaben and shyamaben who were plagued by social stigmas, family

responsibilities and poverty had joined SEWA to earn enough to get two

decent meals per day for their children. Later, through their sheer

determination, they were in charge of the Agarbatti centre, rose to the level

of SEWA Sathis. Krishnaben has been the president of the board since 6

years. The board meetings are held consistently every two month and work

plans and achievement are discussed. The project has helped help women in

capital formation at the house hold level through access to financial services

in order to build up and create assets of their own (land, house, work shed,

equipment, cattle, savings, micro- insurance etc.

5. Health Facility: To develop institutional capacity in order to deliver social

security programs (e.g. health and child care) for women workers and

improve their ability to use these projects. Under the ITC MSK project

health care activities like health camps, referrals are undertaken of members

were linked to health activities. In addition to this SEWA services are

provided to members. Members have been linked to micro-pension and

micro insurance schemes. Government schemes through pensions, women

and child welfare schemes are provided.


35

Table 11: Beneficiary Assessment

Beneficiary Assessment

1 Employment Generation: Total Women Benefited

Hand Roll 576

Machine Roll 60

Dust Roll 36

Sorting Unit 34

Scenting Unit 42

2 Saving

Total HG 30

Member 337

Agarbatti 20

3 Livelihood

Agarbatti 744

SHG/member Loan 20

4 Health Facility

Agarbatti 748 (Free Camps)

SHG 27 ( Loans)

5 Poverty Reduction

Agarbatti 744 (Incremental Change)

SHG 337

6 Food Security Change in Consumption Habits

7 Education Improvement in enrolment rate

8 Standard of living Improvement in living conditions

9 Capacity Building Skill Development

10 Social Empowerment Reported Positive Change


36

Fig 9: Socio-Economic Impact Assessment in the Nutshell

Women Empowerment =

Sustainable Community

Development

Employment =

732 Women

Saving=

337 Women

Livelihood =

1069 Women

Health Facility = 732 Women

337 SHG Member

Poverty Reduction =

1069 Families

Food Security =1069 Families

Education = Significant

Improvement in the enrolment

rate

Improved Living

Conditions

Skill Development

11 Economic Empowerment Reported Positive Change


37

The Logic Model: Impact Value Chain of Project

The Logic Model process is a tool that will tend to describe the effectiveness of

the project. The model describes logical linkages among program resources,

activities, outputs, audiences, and short-, intermediate-, and long-term outcomes

related to a specific problem or situation. Once a program has been described in

terms of the logic model, critical measures of performance can be identified.

Logic models are narrative or graphical depictions of processes in real life that

communicate the underlying assumptions upon which the project activities are

expected to lead to a specific result. Logic models illustrate a sequence of

cause-and-effect relationships—a systems approach to communicate the path

toward a desired result.

If we see the fig.10 it clearly shows the input of the project in terms of physical

and financial resources used in the project. It also describes the various

activities under the project.

The output of the project is measured in terms of women empowerment. The

total number of women employed in the project activities. The efficacy of the

Agarbatti and Microfinance Project is the direct output of the project. The skill

development and health facility also covers the project output.

The Outcome of the project involves the social and economic benefit of the

project. The social benefit of the project involves Appreciation of the women

by family members and increased participation of the women in decision

making and other voluntary organizations. The economic benefit includes

wages and other income generating activities to the women of the village.

The indirect benefit because of the project involves better standard of living,

improved housing condition and education, overall poverty reduction and

increase in the consumption level and job creation in the villages. Above all the

project also focuses on improving the health conditions of the women involved

in the project.


38

Therefore the target object of sustained business and sustainable community

development has been achieved and is able to make a positive impact as far as

Women Empowerment is concerned in the Munger District of Bihar.


39

Fig 10: Impact Value Chain of the project


40

WOMEN EMPOWERMENT: ‘Case Studies of Women and their life in the

challenging world’

Often in the lives of the women in Munger District in Bihar, an economic

crisis due to sudden loss of job by the income earner or serious sickness or

death can ignite off a positive change in their lives which deprives their family

of its means of subsistence, increased needs or demands by the children, the

imperative of raising family income to keep the children at school, or many

other causes. Such situation often leads the solitary wife to surpass herself in

order to ensure the family's wellbeing. Here comes the intervention from the

ITC Ltd. Corporate Social Responsibility, Women Empowerment Project

which helps its beneficiaries understand that they can earn a regular income and

hold their heads high in the society.

Case 1: Many women in the district dream of improving their family Socio-

Economic conditions and setting their children on a path to a better life through

school, and even university which they never dreamed of for themselves. Such

is the case of Sabita Gupta who is engaged with the project since 2003.She was

earlier engaged with the hand rolling of Agarbatti and is currently working as

an employee in the Scenting Unit and is an active member of ITC-SEWA Self

Help Group. Her husband being a daily wage labourer couldn’t afford to send

her son for higher studies, but ITC has helped her earn a regular source of

income to sustain in the challenging world and help her fulfil her dream of

sending her son in an engineering college in Ambala.

Case 2: Earning and managing income is the crucial point for women

empowerment for it facilitates women to learn to handle cash, the family budget

and manage debt. Such is the story of Garima who is working in the Scenting

Unit since December 2011. Since 2 Years she is an active member of ITC-

SEWA Self Help Group which has also given her prospect to earn on one side

and simultaneously save on the other side. This regular flow of income and

saving mechanism has made her self-dependent which also made her capable of

financing her own marriage. This has able to build self-confidence in her that

she would be able to help her family whenever needed.


41

Case 3: Other factors of empowerment include keeping children, especially

daughters, at school, which prepares the way for early empowerment of female

in the society. Such is the story of Mrs. Kiran Devi from Puraniganj, Munger

District in Bihar. Mrs Kiran Devi is blessed to have 2 daughters one in 1oth and

other in 12th grade and wish to send them for higher education. She started

agarbatti rolling 3 years ago and earns Rs 2000 per month. With the regular

source of income she is able to send her children to schools and cover their

educational expenses.

Case 4: It is generally the woman who is able to save money, usually unknown

to her husband to buy some assets for the family with the support of her

husband. But here is the case of Mrs Bishnu who has three children and a

paralysed husband to take care of their medicine, educational expenses and

household expenditure. Being unemployed had made her life more difficult till

a year before she joined Scenting Unit as a full time employee and has a regular

source of income over the year. ITC has given her willingness to earn and

improve their family condition in terms of health and education.

Case 5: Mrs Premlata Devi has 3 children but the husband is unemployed. This

situation was a huge challenge for her to sustain herself and her family in the

period of financial constraint. She is a regular employee of scenting Unit and

earns a regular source of income to support her family financially. Being the

only breadwinner in the family is a huge challenge for her but ITC has made

her life much easier by employing her and helping her earn regular income and

save money for contingency as well. Now she can successfully in a position to

meet the basic necessities of the family.

Case 6: ‘Financial autonomy brings with it dignity’. Mrs. Renu Devi tends to

prove the proverb accurate when it comes to empowering women in the society.

She preferred to stay on the four walls of the houses unless one day she

encountered herself the Agarbatti rolling women in her village. She started her

journey with Agarbatti rolling 5 years ago and earning Rs 500 to 600 per

month. Now she is a permanent employee in Scenting Unit since 2 years and

earns Rs 2000. The case shows that her earning capacity keeps on increasing

with the regular support of ITC. She also mentioned that she loves the working


42

environment and foster high willingness to work as it builds self-confidence in

her.

Case 7: Neelam is an employee of Scenting Unit since last year. She is engaged

in the Agarbatti rolling activity since 9 years. In order to support her family

financially and able to help her four children attain good quality education she

started rolling Agarbatti. To be able to save money for her future she is also an

active member of ITC-SEWA Self Help Group, which has helped her

continuously in terms of loan availability during contingency. This helps her to

maintain small savings and avail loan whenever needed. The project has helped

her to improve the well-being of the family as well.

Case 8: Suletha kumari is in her early twenties and engaged with the project

since few years and earns on an average of Rs 1000 per month. The amount

earned helps her to pay her tuition fees and simultaneously save it for her

marriage. She not only feels independent but also motivated to grow higher in

life. She is also in a position to help her family by supporting them financially.

She says she is no more a burden to a family especially were in rural areas girl

child has to struggle, She is able to earn and make best out of her earnings.

Case 9: Mrs Kanchan is one among the few women who feels socially and

economically empowered with the aid from ITC. She joined the Agarbatti hand

rolling activity 1 and half year ago. It has helped her to attain a regular source

of income and support her financially. She is also an active member of ITC-

SEWA Self Help Group which helps her to contribute towards her daily

savings. Before rolling Agarbattis she was not the member of SHG as she

couldn’t ask money from her husband but now she mentions after joining the

activity the scenario in her house changes completely. She earns around Rs

2000 to Rs 2500 per month by rolling Aarbattis. This helps her to take care of

her 2 children and support financially to her husband for improving their well-

being.

Case 10: Mrs Mita ghosh is a permanent employee of scenting unit since 3

years. She mentions that the activity has helped her to support her family

financially and help her daughter pursue graduation. To send her daughters into

colleges was always what she dreamt of. ITC acted as an enabler in providing


43

employment and showing the gateway for savings. She is happy because he is

able to impart good quality education to her daughters and support her husband

financially. This gives her a sense of self-confidence to grow and improve her

family conditions.


44

Research Outcome

Challenges:

1. Sustaining Membership: To sustain member in Agarbatti rolling is very

difficult because there is no financial attraction in this activity. The return

on this activity is too low considering the time involvement of the member.

There is tendency for members to explore new livelihood activities after

rolling Agarbatti. Two kind of drop-out is seen. Few women temporary

leave the activity during seasonal agriculture work. However maximum

member leave this activity permanently due to hard work and less income.

Whenever new models are introduced, immediate dropout can be seen.

Members take time to understand and implement the model. As a result they

lose remuneration and are reluctant to adapt to change methodologies at the

cost of their remuneration. Below is the table depicting number of members

who have been provided training compared to number of members who roll

Agarbattis

Source: SEWA Record, Munger

2. Wastage: Presently, there is wastage at four different stages of Production.

These are detailed below:

Stage 1: Transportation and Sieving Loss: - There is a difference between the

raw materials supplied (as per the Invoice quantity) and physical material

received at every purchase of raw materials. For example to buy charcoal,

Vendor raises invoice of 50 kg /bag but at our end we receive only 46-47 kg .

This is because water is added to charcoal powder during preparation thereby

increasing its weight. When moisture evaporates the actual weight of the

Sl. No.

Year No. of member

trained

Month wise average

involvement

Drop out

Drop out %

1 2007-2008

1,364.00 463 901.00 66.06

2 2008-2009

2,168.00 615 1,553.00 71.63

3 2009-2010

1,969.00 446 1,523.00 77.35

4 2010-2011

1,238.00 317 921.00 74.39


45

material differs by 3-4 Kgs. After this the material is sieved to maintain quality

norms. The residue of raw materials after sieving is lost. In addition to this

during the course of sieving and transportation, some raw material is lost as it is

in dust condition. The sieving lost is roughly around 4 % and this loss is

unavoidable.

Stage 2: Loss at centre level: main wastage incurred at this level is during the

transit and distribution of raw materials from godown to centre and then to sub

centre.

Stage 3: Loss at Member’s level: The major source of wastage is at

member’s level. Since all the members are home based worker, loss of raw

material is more.

Hand roll worker in Munger


46

Raw materials tend to be misused by children and domestic animals in members

household. Sometimes quality of raw material as well as bamboo stick is also

not proper. There is lack of control over vendors as there is no fixed supplier

who can provide quality raw materials consistently.

Stage 4: At finished goods level: At the finished good level wastage is due to

grading of rolled Agarbatti into 3 categories. If a member does not produce

Agarbatti as per quality parameters, amount is deducted but it is not enough to

reduce the value of loss

Source: SEWA Record

3. Competition: There are 2 major sources of competitors which SUSSSL

faces in this sector. The first is from Non government organisations and the

second is from private agarabtti vendors.

The NGO activities are grant supported therefore business practice like rate

reduction, appropriate wage rate are not practiced. In SUSSSL money is

deducted if count is lower than standard count or if the battis are not of

good quality. Since these are not implemented in other development

agencies, members prefer NGOs over co-operative.

The second sort of competition is faced from local private vendors.

Generally these vendors deal in local market and control entire chain of

scenting and packaging. They pay more to members (roughly Rs 4-8 more

than SUSSSL rate) and do not focus on quality parameters. The private

vendors also target SUSSSL areas where members are well trained and

Year

A grade % B Grade %

2007-08 100.00 -

2008-09 92.03 7.97

2009-10 94.40 5.60

2010-11 91.98 8.02

2011-12 87.45 12.55

Total 93.10 6.09


47

produce quality batti by offering extra remuneration. Some of the vendor’s

active in the field and rate provided by them are below:

Source: Market Survey and SEWA Record

Vendor Name

Wages

Mister 22/- kg

Dilnawaaj 25/-kg

Nanhe 30/-kg


48

Chapter 5: Recommendations 1

Problem Identification: High Wastage and low Production of

Agarbatti

Fig. 11 problem affecting the production of agarbatti

Need: Design Intervention

With the various problems encountered at the ground level the solution to the

above mentioned challenges which directly affect the quality of batti and

production can be minimized with the cost effective design intervention. The

will help to reduce the wastage at the distribution level as well as can help the

company to mitigate health issues. A proper design of manual will help the

centre in charge to store the raw material properly and will also make her

accountable to monitor the raw material often.

Thus below are the list of areas which should be covered under the design

manual stating do’s and don’ts regarding the project intervention.

Quality / Production

Health Issue

Sustaining Workers

Low motivation

drying Agarbatti

Raw Material Storage


49

Solution: A Manual to enhance Agarbatti Production

During my research one of the major problems encountered was the low

production of agarbatti in the district even though the raw material supplied was

high. The major problem as discussed in fig. 10 gives us the detailed idea of

factors leading to low productivity of agarbatti. The manual Proposed contains

chapter wise solution to the different stated problem.

The solution therein proposed will not only help in reducing the agarbati

wastage in the distribution level but also help to mitigate the health impact

related to incorrect sitting posture of women while rolling agarbatti , this not

only tend to create negative health impact but also reduces per member

productivity in the longer run.

The next thing which affect the quality of the agarbatti is it inadequate drying

process. The quality of agarbatti affected can be reduced by its simple design

strategy mentioned in a manual which will give an idea to the local women how

to dry the agarbaati in an efficient process without hampering the quality of the

product.

The other factor related to production is the wage of the women engaged in the

project. Low production is directly related to the wage of the women. Therefore

increase in production will be increase the wage of the women thus affecting

their monthly income and standard of living.

The other factor which can be easily attached with the manual is the intensive

based model to increase the motivation factor among the women. A written

document will help to gain trust of the women worker and they will be

motivated in order to work more and increase per women productivity yield

thus adding to overall production.

The other advantage of the manual will be building accountability in the

process at the centre level and at the NGO’s helping them to achieve their

monthly target. Thus the manual is the cost effective way to build a strategic

accountability into the system benefiting organization as well as the women

engaged with the project.


50

CHAPTER 1:

Problem: Raw Material Wastage at the centre distribution level

CHAPTER 2

Problem: Improper body posture may lead to health effect

Solution

A properly illuminated

storage space can help in

reducing wastage of raw

material due to damp and

spillage.

Solution

Proper Systematic

training

Tools and accessories

that will aid in proper

sitting arrangements

and postures can help in

achieving comfortable

production work

Increases productivity

per person


51

CHAPTER 3

Problem: Inadequate drying process affecting the quality of Agarbatti

CHAPTER 4

Problem: Low motivation among worker

Solution

It would be beneficial to

keep mat or a wood block

underneath the stick before

drying

Solution

A regular draw or a

sustainable incentive based

model to be initiated in

order to increase the

motivation factor.


52

Recommendation 2

Problem Identification: Problem in SHG Book Maintenance

Fig. 11 Problem of poor SHG book Maintenance

Some of the problems arising due to poor book maintenance are problem of

annual auditing, dependency behaviour of the SHG member for the NGO

worker who maintains the monthly records. Thus leading to non-reliable up to

date record of SHG and wastage of time and money of field workers who have

to collect the data monthly and maintain the record manually.

Book records are the only source of data wherein all the records of savings and

loan are maintained, therefore improper record maintenance will lead to conflict

in the group and wasting overall time of the organization. Therefore for a

smooth functioning of the SHG’s the proper record maintenance is necessary.

Therefore an IT based solution will curb most of the problem faced by the

organization in maintaining the weekly and monthly records of the SHG

members.

Problem in Book

Maintenance of SHG

Dependency Behaviour

No reliable, up-to-date record of

SHG

Wastage of SHG

members’ time

Annual auditing


53

Solution: IT in SHG-style microfinance to improve the SHG

Quality

Intervention to improve the bookkeeping quality of microfinance collectives

(Self-Help Groups – SHGs) by connecting these groups with trained

accountants (munshi) who use a PC with accounting software to maintain an

electronic database of SHG financial records and transactions. In this report, we

analyse qualitative data collected from site visits to three Different Location

locations. A few core insights are drawn from the overall design and

functioning of the project, which are relevant to any number of planned and

implemented projects in the use of Information Technology (IT) for rural

development.

A group of usually between 10 and 20 adults get together and make small (Rs.

50-100), regular (Monthly) contributions towards a common savings pool,

whose money is then continually re-lent to one or more of the group’s own

members at a set interest rate (almost always calculated on reducing balance).

Central to the path to long-run sustainability is the linkage of the SHG with a

commercial bank over a period of time, from which the group can borrow larger

amounts collectively (at a low interest rate) for on-lending to individual

members (removing the capital constraint faced by the SHG due to its own

limited resources).

Suggestions for future line of work:

Case studies of successful and unsuccessful Self-help groups, training needs of

SHG members, role of banks and NGOs in uplifting unsuccessful SHGs,

development of suitable marketing strategy for SHGs and the present study was

conducted in only one districts, hence it is necessary to have studies in other

areas in order to generalize the findings.


54

CONCLUSION

Sign of achievement of the project

• Project intervention directly related to the needs of the community. The

Unemployment problem in these villages were increasing at an alarming

rate thus the project has helped in employment creation and livelihood

generation in the district Munger. The project has been able to create a

positive impact in the district in terms of empowering women in the area

and imparting them with skills and livelihood opportunities

• Impact on the daily income earning of the rural and urban women in the

district has proved to be positive.

• Extra time of woman after finishing their daily work has been converted

into productive time due to the project intervention

• Home based work provided by ITC has helped these women to earn

while working in their home.

• Thrust given for capacity building and skill development of the

intervention area.

• Acceptance of the work by the villagers ha s also helped reduce the

social stigma in the village

• Opportunities for the women to get potential employment while they are

at home

• Thrust given to SHG formation to increase the saving mechanism of

these women

Overall the project act as an enabler for ‘Sustainable community

development , Enhancing livelihood opportunities by empowering

Local women, Strengthening local communities through capacity

building and Focus on self sustaining CSR model’.


55

References

1. Centre for Good Governance, 2006 , A Guide to Socio-economic impact

Assessment, unpan1.un.org/intradoc/groups/public/.../cgg/unpan026197.pdf

2. Social Impact tools and methods

http//www.worldbank.org

3. Bidwai Shreeniwas V ,CSR AT ITC LTD- viewing through strategic lens,

www.mmbgims.com/docs/full_paper/21_Bidwai_pp.pdf

4. Abdul Rashid khan and Zainib Biwi, Women’s Socio- economic

empowerment through participatory approach , A critical Assessment,

http://pu.edu.pk/images/journal/pesr/PDF

5. www.itcportal.com

6. V. Puhazhendi & K. C. Badatya,2002, SHG-Bank Linkage Programme for

Rural Poor – An Impact Assessment ,National Bank for Agriculture and

Rural Development

7. ITC Ltd , Women agarbatti producer ITC,

www.itcportal.com/pdf/Women-agarbatti-producer-ITC.pdf

8. ITC Ltd, 2011, Sustainability Report

www.itcportal.com/sustainability/sustainability-report-2011/annexure

9. Adopted from the Goldman Sachs Foundation, 2003 , The Impact Value

Chain

10. Self Employment Women Association SHG Record Book. SEWA, Munger

http://www.mmbgims.com/docs/full_paper/21_Bidwai_pp.pdf

http://pu.edu.pk/images/journal/pesr/PDF

http://www.itcportal.com/

http://www.itcportal.com/pdf/Women-agarbatti-producer-ITC.pdf

http://www.itcportal.com/sustainability/sustainability-report-2011/annexure


56

Annexure 1: Survey Questionnaire: Social Screening

Project Details

Description

Details

Type of project

Project Area and Location

Started

Institution Assessment

Description Details

Partner NGO

Total Community Group (SHG’s)

Socio- Economic Assessment – General Information

Description Details

Name and no. of SHGs in the project area

Type of localities

Total population of project area

Social group

Literacy rate

Occupation

Population of project affected families

Vulnerable families

Household income


57

Socio- economic Impact over a Project Period

A. Social Variables

Before

Project

2008-till

date

Positive / Negative

1. Appreciation

App. in social function

App. by family members

Bureaucrats

Intermediaries

Societies

2. Participation

Social Activities

Association Voluntary Organization

Gripe against social tribulation

Involvement in Voluntary organization

3. Services & Social

Infrastructure

Social services

Education

Health

Physical Infrastructure

Population Sustainability

B. Economic Variables

Before project 2008-till

date

Positive / negative

1. Possession

Residence

Ornaments/ equipments etc.

Assets

Basic Facilities

2. Income

Personal

Family

Supplementary

3. Savings

Lending capacity

Bank savings

Intangible investment

4. Debt

Reduction in debt


58

Feedback Mechanism: Level of Impact of the Project on the Women

Empowerment

Activities

Agree Neutral Disagree Ranking

Improvement in Social Status

Poverty Reduction

Improvement in Income level

Improvement in consumption level

Increase in Decision Making Process

Confidence Building

Improvement in communication Skills

Awareness of Social Issues

Improvement in Health

Improvement in standard of living

Food Security

Equity

Psycho-social stress


59

Annexure 2: Sample Selection


60

Annexure 3: Research Assessment tools

Annexure 4: Project Research Area

Urban Areas

Rural Areas

Hasanganj, Belan bazar , laloo

pokhar , haji sujan , choti

Mirzapur, ganga sagar, purani ganj

, maksaspur , shivnagar maniya

chauraha & Bindwada

Kataria, Taufir , Mai, Hasanpur,

Navagadi & Benigir

Time line Participatory rural Appraisal

Beneficiary Assessment

Stakeholder meeting

Duration

4th April – 5th May 2012

4th April to 5th may 2012

7th May to 15th may 2012

Participating Communities

SHG Agarbatti rollers & SHG Agarbatti rollers & SHG & NGO’s

Methods

Structured / Semi –structured Interview: Survey/ FGD / Mapping

Semi structured interview/ FGD & Observation

Semi Structured Interview

Sampling

Multi Stage random Sampling

Random sampling Small sampling

Statistical Analysis

Field / Data analysis Field/ data analysis Data analysis & Records

Method

Qualitative/ Quantitative

Quantitative / qualitative

Qualitative


61

Annexure 6: scoping Matrix

Small Business & Entrepreneurship

A nshu final project 20140418-120958