International Development Enterprises India (IDEI) | GiveWell

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International Development Enterprises India (IDEI)

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GiveWell aims to find the best giving opportunities we can and recommend them to donors (why we recommend so few charities). We tend to put a lot of investigation into the organizations we find most promising, and de-prioritize others based on limited information. When we decide not to prioritize an organization, we try to create a brief writeup of our thoughts on that charity because we want to be as transparent as possible about our reasoning. The following write-up should be viewed in this context: it explains why we determined that (for the time being), we won't be prioritizing the organization in question as a potential top charity. This write-up should not be taken as a "negative rating" of the charity. Rather, it is our attempt to be as clear as possible about the process by which we came to our top recommendations.

Published: September 2012

Program:
    IDEI primarily develops and markets irrigation technologies to smallholder farmers aiming to enable them to increase their farm production.
Accountability and transparency:
    To its credit, IDEI has shared a significant amount of information with us about its operations, including sales data and customer satisfaction surveys. Collecting and being willing to share this type of data is rare among charities we've seen.
Our take:
    IDEI stands out for its transparency, and we believe it may have successfully created a self-sustaining business that was initially financed with donations. However, we have chosen no longer to prioritize the area of agricultural aid, for reasons laid out at our review of agricultural aid programs. We therefore have left many questions below unanswered primarily because we have chosen not to investigate them further.

What do they do?

IDEI works to increase incomes for smallholder farmers. More specifically, it works to increase access to technologies, to date primarily irrigation technologies, that increase farmers' output. It does this by:1
  • Product development: assess what farmers need and design solutions.
  • Establishing the supply chain: find manufacturers for the products it designs, recruit retailers to sell the products, and train mechanics to install the products. IDEI does not pay manufacturers or dealers. It provides training, sets prices, and conducts quality inspections.2
  • Market development: promoting products to farmers.
It markets two main product types:3
  1. Water lifting devices: in areas with water available close to the surface (primarily east and northeast India), IDEI markets pumps to lift the water to the surface for irrigation of crops. Pumps account for about 69% of cumulative sales of IDEI products.4
  2. Water application and storage devices: in areas with scarce water (primarily west and south India), IDEI markets technologies to store and apply the water effectively, such as drip irrigation, i.e. tubes with holes to release water at the base of each plant, and water storage bags used in drip irrigation systems. Drip irrigation products account for about 30.5% of cumulative sales of IDEI products.5
IDEI states that it targets products that (a) benefit rural, poor, small holder farmers, (b) are purchased by individuals (not communities), (c) are affordable at full cost, (d) are distributed through for-profit entities, (e) lead to income generation, (f) are environmentally sustainable, and (g) favor women.6

Spin off companies

In 2005, IDEI facilitated creation of an entity intended to be a distinct, for-profit company. The company, called Global Easy Water Products, distributes IDEI's water application systems (drip irrigation and sprinklers).7 The company inspects and purchases the product components from the manufacturers and sells them to retailers (systems are assembled from these components on the farmers' fields).8 In late 2011, IDEI told us that as of 2012, IDEI planned to hand over all water application operations to Global Easy Water Products Ltd.9 IDEI told us that it "is continuing to explore newer areas under the water application component under a new programme (developed within IDEI) for semi arid regions of India."10
IDEI told us that it recently started a second company to market water lifting devices [Note: GEWP's website indicates that the second company is for "output markets"11].12 Note that we have not asked IDEI what the company's current activities are.

Other activities

Jasmine Social Investments notes that IDE India is expanding into Africa.13 We have not asked for that breakdowns of IDEI's expenses by activity, product type, or location.

Does it work?

In reviewing IDEI, we focused on the following questions:
  1. Do customers show that they value the products by purchasing them? More specifically, we asked:
    • Are sales increasing over time for the same products and is IDEI's village-level market penetration increasing?
    • Do customers pay for the full costs of the products?
    • Has IDEI created profitable enterprises?
  2. Are products of high quality? Specifically, are customers satisfied with products and do products last over time?
  3. Do products primarily serve the poor?
  4. Do products increase customers incomes?
Note: this review does not consider the possible environmental impact of farmers switching to IDEI's products.

Do customers buy the products?

IDEI shared the following sales data with us (which includes both IDEI and Global Easy Water Products sales).14 It appears from this data that sales for each type of product experienced a take off period in which sales increased rapidly and then leveled out at a level below the peak. Without details of whether penetration was increasing (more below), it is difficult to conclude anything about client satisfaction from these aggregate sales patterns. IDEI told us that sales of water lifting devices, in particular, have dipped because IDEI has not had sufficient funding in recent years to support the program.15 IDEI has told us that it collects data on its customers through the warranty cards they receive at purchase.16 In one state, IDEI sent auditors to verify that pumps were present on the farms of those who had been reported as customers. Auditors selected a random sample of past pumps sales and visited each farm. The report includes copies of the handwritten forms completed by the auditors on-site, summary statistics, and photographs of the auditors at work. Out of 125 samples, they found zero "non-conforming" cases.17 It plans to conduct similar audits in other states.18 Were we to continue our analysis, we would be interested in seeing data on whether IDEI's penetration (i.e. percentage of users out of total population in each area) has increased over time. Increased penetration might indicate (a) that products have wide appeal, and (b) that customers likely purchased products after witnessing their positive impact on neighbors. We have seen data on market penetration (which we are not cleared to share) for a small subset of IDEI areas of operation.19 We have not asked IDEI how these areas were selected for inclusion in the study.

Do customers indicate that they value the products by paying near cost for them?

IDEI pays for product development, marketing, and establishment of the supply chain with donor funds, but told us that it does not subsidize product production or distribution.20 Market retail prices for the bamboo pedal pump range from INR 660 to 800 (about $15-$18) and for surface treadle pump from INR 1600 to 1850 (about $36-$42), depending on the state in which they're sold.21 IDEI also provided prices for the components of a drip irrigation system,22 but we have not asked for information on what components a typical system requires. IDEI states, "As compared to conventional drip systems these systems were cheaper by 70-80% depending on the thickness of the KB Drip tape."23 We asked IDEI if it had uncovered cases of retailers over-charging customers. IDEI told us, "There are cases where they do that, and we deal with it."24 However, one IDEI report from 200225 notes that some products are distributed through non-profit organizations, and are sometimes given out for free or at a subsidized price.26 More generally, while we have not analyzed this issue deeply, it seems plausible to us that products may be "underpriced" relative to what a fully for-profit company would have to charge for its products because IDEI's sales are supported by IDEI's donor-financed activities (such as marketing).

Is IDEI creating profitable enterprises?

Global Easy Water Products' revenues have exceeded expenditures for every year from 2005 to 2010, and revenues have grown steadily in that period (we have seen but are not cleared to share the financial reports). We asked IDEI if, were IDEI to disappear, Global Easy Water Products would be able to continue operating at a profit. IDEI told us that there are many locations in which Global Easy Water Products currently works that it would have to exit from, as operation in these locations are not profitable and are supported by IDEI. Update: In August 2012, IDEI told us that Global Easy Water Products is now operating all water application operations independently of IDEI.27

Are customers satisfied with products?

IDEI conducted three customer satisfaction surveys in 2008-2010. In each, IDEI aimed to randomly select 1,105 customers who purchased products after November 2007 for inclusion in the survey,28 though results are sometimes reported for each buyer-year cohort. We note that we have found instances where the data appears to be internally inconsistent.29 The table below reports responses by year of purchase except where otherwise noted (in these cases, responses were not disaggregated by year of purchase in the report).30
2007-2008 buyers2008-2009 buyers2009-2010 buyers
Overall satisfaction with KB products99.5% satisfiedAbout 90% (read off chart)Close to 100% satisfied (read off graph)
Satisfaction level on the purchase experience97% satisfied92.4% satisfied99.5% satisfied
Product delivery54.3% on same day; 40.6% within 2 days; 1.9% within a week; 3.0% longer44.0% on same day; 35.9% within 2 days; 19.0% within a week; 1.1% longer76.2% on same day; 14.9% within 2 days; 8.3% within a week; 0.6% longer
How many days after purchase, the product was installed42.3% on same day; 48.4% within 2 days; 7.6% within a week; 1.5% longer45.0% on same day; 41.4% within 2 days; 12.7% within a week; 0.9% longer45.5% on same day; 45.5% within 2 days; 8.5% within a week; 0.5% longer (2007-2010 buyers)
No. of times the KB customer contacted installer for installation57.4% reported on schedule; 38.9% reminded once; 3.7% reminded 2 or more timesNot reported in aggregate65% reported on schedule; 30% reminded once; 5% reminded 2 or more times (2007-2010 buyers)
Any post-installation problems93% said no problemsAbout 10% (read off chart)59% of pump users and 71% of drip users said no; 100% of problems classified as minor (2007-2010 buyers)
Resolution of post-installation problems100% satisfied with problem resolution100% satisfied with problem resolution99.8% satisfied with problem resolution
Speed of problem resolution58.8% resolved on day of reporting; 27.5% in two days; 13.7% longerNot reported in aggregate94% resolved on day of reporting or in two days; 6% longer (2007-2010 buyers)

Detecting and responding to problems

We asked IDEI if it had ever recalled a product. IDEI told us about and sent us a report on an incident in Madhya Pradesh in 2005, in which a batch of drip irrigation tubes were found to be defective and all tubes in the batch were replaced. The report details how the manufacturer and IDE technical team visited 10 farms to inspect the tubes and how the manufacturer's machinery was dismantled and repaired.31 As a result of the incident, additional annual quality checks on manufacturers were instituted.32 IDEI told us, "We provide a [1-year] warranty on the product. If there is a small defect, we'll repair at the local level. If it's a major problem, we'll replace it with a product from inventory. Madhya Pradesh was the last instance where we had a large product failure."33

Do products last over time?

We asked IDEI about this, but it sent limited information to answer this question.34

Do products increase users' incomes?

IDEI conducted "income impact" surveys in 10 states in 2010 (between 30 and 140 farmers were interviewed in each state).35 Surveys were conducted with a random sample of product users.36 Data on earnings and costs were collected to estimate income generated as a result of using products developed by IDEI.37 Given what we know about the methodologies used in these surveys, we do not believe they provide sufficient evidence to conclude that IDEI is raisings its customers' incomes.38

Are customers poor?

Our understanding is that IDEI does not directly collect information on customers' total incomes or standards of living.

Possible negative/offsetting impact

  • Many IDEI pump users used diesel pumps previously, which they rented from other farmers. The owners of the diesel pumps have likely lost business as a result of uptake of IDEI pumps.39
  • Other producers and sellers of irrigation technology may have been displaced by IDEI. IDEI told us, "Regular for-profit companies do not develop these products because transaction costs are high; they don't see potential in the smallholder farmers and the costs for market creation are high."40
  • IDEI told us that it was concerned about the possibility that children may be used to operate pumps and may be kept out of school to do so. It has conducted non-rigorous studies to explore this issue.41

What do you get for your dollar?

According to Jasmine Social Investment, IDEI's expenses were $5,109,030 in FY 2010.42 According to IDEI's sales figures, it sold 89,564 products in that year.43 Therefore, we estimate that the cost per product sold was $57 on average in FY 2010. Using the same sources of data, we estimate that the cost per product sold ranged from $18 to $68 in each year from 2007 to 2009, and averaged $40 over the period FY 2007 to FY 2010.

Room for more funds?

IDEI told us that it is seeking funding to:44
  1. First priority: Ensure that it is able to continue working in its current areas of operation. Each location costs $15,000 to $20,000 per year. As of June 2011, IDEI believed that with currently available funding it could maintain its current locations for 3-4 months, but after that it would have to exit 100 (out of about 430 total) locations.45 The first locations it would exit would be the locations it had entered most recently. We do not know whether IDEI expects to raise at least some part of the funding needed to remain in its current locations.
  2. Second priority: New product development. IDEI reports that its product development center costs $200,000 to $250,000 per year and that it is funded by a grant scheduled to end in September 2012, and that renewed funding from this source was uncertain due to recent changes at the foundation. As of June 2011, IDEI was developing five new products:46
    • Low-cost greenhouse (field test phase; 1-2 years until it could go to market). The product is designed to keep out pests, and to enable farmers to run nurseries for raising seedlings.
    • Solar water lifting pump (field test phase; 1-2 years until it could go to market). This is targeted at farmers who have higher incomes than users of manual water lifting devices.
    • Microsprinkler (pilot test phase; could go to market as early as March 2012). This is a water application device.
    • Subsurface drip (field test phase; 1-2 years until it could go to market). This is a water application device.
    • A product that complements the drip irrigation system (field test phase; 1-2 years until it could go to market).
  3. Third priority: Set up markets in villages it does not currently reach. IDEI reports that it is aware of an additional 100 locations (at about $15,000 to $20,000 per year) that it could expand into, given available funding.
IDEI told us in June 2011 that it has not seen any progress in securing grant funding to cover these costs. According to Jasmine Social Investments, IDEI's expenses have grown from $1,495,270 in FY 2007 to $5,109,030 in FY 2010, largely supported by a grant from the Gates Foundation that provided $664,973 in FY 2008 and grew to $4,198,822 in FY 2010.47

Remaining questions

  • Customers. How poor are IDEI's customers? Do they have access to comparable products?
  • Expenses. What has IDE India spent money on in the past? How does its spending break down among activities, geographic areas, and/or products?
  • Sales penetration. Have sales grown by selling in new areas or increasing sales in the same areas?
  • Cost to customers. Are products sometimes subsidized or given out for free by non-profit organizations?
  • Product quality. Do products last over time? How much maintenance do they require?
  • Product development. How does IDEI develop and test new product ideas? What have past pre-market tests shown? What products have been tested but not brought to market?
  • Market distortions. Is IDEI crowding out other suppliers who might provide similar products without donor support? Is it distorting incentives for manufacturers who might otherwise produce different (potentially more valuable) products?
  • Room for more funds. What funding does IDEI expect to receive in the next year? How would IDEI expect additional funding to affect IDEI's sales in its current areas of operation?

Sources

  • 1. GiveWell: What is IDEI's role/value-added? IDEI: We are increasing incomes for the smallholder farmers. It is very necessary that the smallholder farmers be connected to the markets to both buy tools and sell products. We do four things: 1) Develop products: determine what products are needed and develop them 2) Establish the supply chain: to find manufacturers, we identify entrepreneurs already in the business of making products with similar raw materials and train them to make our products. In addition to manufacturers, we also work with local retail shops that are close to the villages. These shops purchase from manufacturers and sell to farmers. We also help with installation and we bring in mechanics that are trained to install the products and teach farmers to use the products. 3) Market development: create awareness among farmers about potential benefits they can gain from the products and what the product features are. 4) Identifying constraints beyond irrigation: some farmers can only grow crops during monsoon. So, we've focused on irrigation so far, but there are also other constraints in smaller areas." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
  • 2. "We train manufacturers on how to produce products. For 6 months to a year, there's heavy involvement. After that, we do quality inspection; this consists of three steps- raw material, in-process and final product inspection. Because every product that leaves the manufacturer's facility is sold on our brand and has a 1-year warranty. We identify local retailers that are close to villages (farmers). We then connect dealers with the manufacturers. These dealers market the products to customers...We train the mechanics who do the installation initially and re-train them whenever there is new product or modification of product...The market retail price printed on every product and is part of advertisement campaign. The margins that the manufacturer makes are all decided at the beginning of the season and we try and hold prices for the whole year." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
  • 3. "IDEI: In the East and Northeast of the country, the main constraint is a technology where you can lift water and irrigate your land. The common product is a diesel pump, but these pumps are too expensive for smallholder farmers to buy and operate and are not designed to meet their requirements. In the West and South, there's very little water, and the top 3 companies in the world are in India are marketing drip irrigation systems with government subsidies. Still, less than 6% of India's irrigated land is covered by drip irrigation and sprinklers. GiveWell: What are the main products you're involved with? IDEI: We have three categories:
    • Water lifting: treadle pumps (with multiple variants, depending on whether water source is below ground or on surface); rope and washer pump;
    • Water application devices: once you have water, how do you apply it? These are drip irrigation and sprinklers. One of the adaptation of drip irrigation systems is the family nutrition kit. Allows people with just the land around their house (perhaps 20 square meters) to grow vegetables. They can grow 40 plants (70-80 kg of vegetables) over 2-3 months with just 2 buckets of water per day –one in the morning and one in the evening.
    • Water storage devices: low cost storage bags of capacities 200 litres & 5, 000 litres which in turn is used with drip irrigation systems."
    Regarding drip irrigation, IDEI told us: "The way it works, you have plants in a row and you have a plastic pipe that lies in the row and has a hole for each plant." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011
  • 4. Shveta Bakshi, email to GiveWell, August 16, 2012.
  • 5. Shveta Bakshi, email to GiveWell, August 16, 2012.
  • 6. International Development Enterprises India, "Criteria for Technology Evaluation."
  • 7. "IDEI cannot receive revenue because the Indian legal system prevents tax exempt non-profits from receiving revenue. The initial idea was IDEI would build up a critical mass of demand then the private sector would continue to supply the products. This turned out not to work. In 2003, we decided that since we as an organization could not be part of the delivery chain, we would start a for-profit. IDEI is dependent on donor funds, which are inconsistent, and there's no guarantee of sustainability. In 2005-2006, we facilitated the formation of first company, Global Easy Water Products (GEWP)...GEWP specializes in drip irrigation and sprinkler systems." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011. Full list of products sold by GEWP and prices is in Global Easy Water Products, "Drip."
  • 8. "Each component is produced by different supplier. These are small businesses in different parts of India. The people who sell the products to the farmers are small dealers who are situated in very small markets. GEWP play the role of the super-stockist. GEWP maintain an inventory so there are no shortages of supplies. GEWP see that prices are not exorbitant. GEWP does all the production inspection and product modifications...Each drip irrigation system is different from another, depending on crops. There are mechanics associated with the small-scale retailers who construct each system on the fields of the farmers. GEWP purchases the products from manufacturers. It has 7 warehouses across India, from which we sell to small-scale retailers." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
  • 9. Shveta Bakshi, email to GiveWell, August 16, 2012.
  • 10. Shveta Bakshi, email to GiveWell, August 16, 2012.
  • 11. Global Easy Water Products, "Board of Directors."
  • 12. "IDEI facilitated the formation of a second company that will operate in other parts of India and market the pumps, accessories, and all future water lifting devices." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
  • 13. "Africa: three current initiatives 1) feasibility study in Madagascar with partner NGO to determine appropriate irrigation technologies, 2) supply drip irrigation products to 7 countries and 3) deployed an Acumen fellow in Nairobi for 9 months to determine how to expand to 5 countries (Kenya, Uganda, Tanzania, Malawi and Mozambique)." Jasmine Social Investments, "International Development Enterprises, India DD," Pg 2.
  • 14. International Development Enterprises India, "Number of Customers for the Products by Year." IDEI told us that this includes sales through both IDEI and Global Easy Water Products. Suresh Subramanian, phone conversation with GiveWell, June 10, 2011.
  • 15. Suresh Subramanian, phone conversation with GiveWell, June 10, 2011.
  • 16. GiveWell: Do you monitor sales? IDEI: Every customer is tracked. We collect copies of guarantee cards. We are digitizing data for the last three years now, and it's partially done. This digitizing will lead to the creation of GIS maps which will eventually help in sales and promotional planning as well. We have also initiated external audits to validate the same. We have completed in one state (report being shared) as we complete others, the reports will be shared. At a state level, we have number of customers by year." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
  • 17. TUV India, "Quantity Audit of Low Cost Irrigation Device in Uttar Pradesh."
  • 18. "We have also initiated external audits to validate the same. We have completed in one state (report being shared) as we complete others, the reports will be shared." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
  • 19. Universal Counsulting, "Strategy to Achieve and Sustain 'Tipping Point' - Executive Summary."
  • 20.
    • "There are no financial transactions between supply chain members and IDEI." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
    • "Treadle pumps are sold on purely commercial terms, without any subsidy or credit scheme." Srinivas et al. 2006, Pg 56.
  • 21. International Development Enterprises India, "BPP & STP (2010-2011)." The acronyms BPP and STP are defined in International Development Enterprises India, "Voice of Customers (2010)," Pg 3.
  • 22. Global Easy Water Products, "Drip."
  • 23. International Development Enterprises India, "Marketing KB Drip," Pg 2.
  • 24. Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
  • 25. "The preliminary survey for developing the schedule and testing it was done in January-February 2002. Survey of users in Maharashtra was done in Feb. 2002. The survey of users in MP was done in June 2002. Finally, the survey in Gujarat was done in July 2002." International Development Enterprises India, "Appropriate Drip Irrigation Technologies Promoted by IDEI: A Socio-Economic Assessment," Pg 8.
  • 26. "Sixteen of the BK users reported the price of the BK to be Rs. 330 each for the kit, two said it was Rs. 300, three said Rs. 275 and six said Rs. 250 each for the kit. Lower price or no price was stated by the remaining persons, some of whom included those who ran a demonstration. Thus, most NGO sales have been booked at cost...Six users of CS got these systems free as subsidy or as a demonstration kit by the NGO...NGO partners may pay full cost to the channel partner on IDE (India)'s insistence. Yet while bulking the demand and making all payments together, NGOs may use some of their 'scheme' monies for purchase of the kits. Most BK sales in Gujarat seem to have occurred with some subsidy from the participating NGO." International Development Enterprises India, "Appropriate Drip Irrigation Technologies Promoted by IDEI: A Socio-Economic Assessment," Pgs 12-13 and 21.
  • 27. Shveta Bakshi, email to GiveWell, August 16, 2012.
  • 28.
    • 2008 survey: "The total number of respondents was 1,105 KB users spread across 13 states & 160 districts...The respondents/samples were derived randomly from the universe of the farmers who had purchased KB technology between the periods of November ”˜07 to October ”˜08." International Development Enterprises India, "Voice of Customers (2008)."
    • 2009 survey: "The total number of respondents was 1105 KB users spread across 14 states & 246 districts...The respondents/samples were derived randomly from the universe of the farmers who had purchased KB technology between the periods Nov 07 to Oct 09." International Development Enterprises India, "Voice of Customers (2009)."
    • 2010 survey: "The total number of respondents was 1105 KB users spread across 13 states & 223 districts...The respondents/samples were derived randomly from the universe of the farmers who had purchased KB technology between the periods Nov 2007 to Oct 2010." International Development Enterprises India, "Voice of Customers (2010)."
  • 29.
    • For example, in the 2008 survey, more people reported receiving their product more than a week after purchasing it than reported having their product installed more than a week after purchasing it.
    • There is also some lack of replicability. For example, the 2008 report found 97% satisfaction with the experience of purchasing the product among a sample of 2007-2008 buyers, while the 2009 found 90% satisfaction with the experience of purchasing the product among a (newly selected) sample of 2007-2008 buyers.
  • 30. All data from:
    • International Development Enterprises India, "Voice of Customers (2008)."
    • International Development Enterprises India, "Voice of Customers (2009)."
    • International Development Enterprises India, "Voice of Customers (2010)."
  • 31. "In June 2005 one batch of KB drip-125micron lay flat tubes of 1,500kg were supplied to Indore (MP) field. The same materials were purchased and used by the farmers for pre monsoon irrigation in cotton crop. Most of the cotton farmers registered a major complain of a line tearing of KB drip. The defect was noticed immediately while using in first irrigation. Based on this field complain, the manufacturer was called for an investigation at farmers field jointly with IDEI technical team. The team visited 10 farmers' fields and following were the observations...The team decided to replace entire batch and to do further investigation on blow extruder machines of the same manufacturer used for manufacturing KB drip lay flat tubes...The entire machine was overhauled & assembled." International Development Enterprises India, "Improvement Process on KB Drip Based on Field Report," Pgs 1-2.
  • 32.
    • "We did a study to understand why problems occurred that resulted in changes in our quality inspection process." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
    • "The production supervisors & QAM were asked to check the detail process of annual maintenance as per the following maintenance schedules.
      • Remove the dies & screw and clean thoroughly.
      • The Screw should be given for nitride treatment & polishing.
      • Inspect the condition of dies and make the necessary replacement/chrome plating.
      • The system of air line should be checked for any leakage & blockage.
      • The nib roller & all the intermediate rollers are to be checked for replacement/or repair.
      • The gear box oil is to be changed & replenished with fresh gear oil ((90 HD).
      • After completion re-assembling, run the machine for 100kg with recommended composition & check the temperature parameter setting."
      International Development Enterprises India, "Improvement Process on KB Drip Based on Field Report," Pg 2.
  • 33. "Every product that leaves the manufacturer's facility is sold on our brand and has a 1-year warranty." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
  • 34.
    • A 2010 survey of customers who bought treadle pumps between 2001 and 2009 reports on whether respondents were still using the pumps and what maintenance had been required. This report does not seem reliable to us because:
      • An equal number of respondents were included from each purchase year and from each state, but it is not clear whether, within these groups, respondents are representative of all customers; the report does not say that they were randomly selected from a customer list.
      • The report says only, "In the first stage, districts with long term intervention by IDEI were selected. This was done to ensure that the sample has an equal representation of customers who have used TP for a period of one to nine years. In the second stage, customers with different years of purchase, from 2001 to 2009, were listed. In the third stage an equal number of customers were picked for each of the purchase years in each of the states."
      • Though a few respondents reported that they were no longer using their pumps, all of these were from the same state, and it is not clear from the report whether those no longer using the pumps were systematically sampled in other states. The authors seem to suggest that users rather than purchasers were interviewed: "The study involves a sample of 482 TP users who purchased TP during the period 2001 to 2009, and thus includes smallholders who have used TP for a period of one to nine years...While 97% customers continue to use TP for irrigation, three percent adopted diesel pumps. All such cases were reported in state of Assam." International Development Enterprises India, "Do Smallholder Farmers Continue Using Treadle Pumps?" Pgs 4-6.
      • The report does not indicate that interviewers verified respondents' claims that pumps were still in use.
    • A 2007 survey of current users who had purchased products up to 11 years prior asked about the age of the products and frequency of maintenance required.
      • Treadle pump: "The parts of the TP which were usually replaced by the farmers were check valves and washers, and the maintenance cost ranged from Rs. 30-100 per annum. The age of the pumps in the surveyed HHs ranged from one to 11 years, and it was found that the pumps installed 11 years ago were also functional." Srinivas et al. 2006, Pg 1.
      • Drip irrigation: "About 15% farmers told that their drip systems are working since 5 years. The average cost of repair for KB Drip system is around Rs. 230 per year and repair work is needed once in a year." Jalajakshi et al. 2006, Pg 23.
      However, because those surveyed were current users it is not possible to discern from this data whether most pumps and irrigation systems originally purchased remained in use over time.
  • 35. International Development Enterprises India, "Income Impact Analysis: Bihar (2010)." International Development Enterprises India, "Income Impact Analysis: Chattisgarh (2010)." International Development Enterprises India, "Income Impact Analysis: Gujarat (2010)." International Development Enterprises India, "Income Impact Analysis: Karnataka (2010)." International Development Enterprises India, "Income Impact Analysis: Madhya Pradesh, Treadle Pump (2010)." International Development Enterprises India, "Income Impact Analysis: Madhya Pradesh, Drip Irrigation (2010)." International Development Enterprises India, "Income Impact Analysis: Maharashtra (2010)." International Development Enterprises India, "Income Impact Analysis: Orissa (2010)." International Development Enterprises India, "Income Impact Analysis: Tamil Nadu (2010)." International Development Enterprises India, "Income Impact Analysis: Uttar Pradesh (2010)." International Development Enterprises India, "Income Impact Analysis: West Bengal (2010)."
  • 36. For example, "Present study is based on findings from a random sample of 108 smallholders which is a part of total sample of 996. Incomes reported are exclusively agricultural earnings through use of KB Drip for irrigation." International Development Enterprises India, "Income Impact Analysis: Madhya Pradesh (2010)."
  • 37. "Incomes reported are exclusively agricultural earnings through use of KBTP for irrigation. Both gross income and net income after deduction of investments have been recorded for all crops. All cost of cultivation, including labour based and input based costs were gathered." International Development Enterprises India, "Income Impact Analysis: Madhya Pradesh (2010)."
  • 38. For example, it is not clear whether those who purchased products but no longer use them were included in the survey sample. In addition, we have not seen technical details on how this data was collected or analyzed, and we are concerned that calculating income, particularly income due to a single agricultural tool, from farmers' recollections and self-reports may be inaccurate.
  • 39. "This indicates that TP has displaced the DP usage and fulfilled the earlier suppressed demand for irrigation among the poor or marginal farmers...In all the villages the respondents said that DP [diesel pump] hiring had reduced with the introduction of TP [treadle pump]." Srinivas, et al. 2007, Pgs 21-22.
  • 40. Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
  • 41. "One potential problem we've thought about that the treadle pump uses manual labor and there is a possibility that children operate it and not go to school. We've done studies on the impact on children in 3 states we work in. All reports will be shared." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011. Studies:
    • Acumen Fund, "A Fairy Tale for All? A Rapid Assessment of IDEI's Treadle Pump Programme in Uttar Pradesh, and its Impact on Children's Welfare.
    • Panigrahi and Mohapatra 2010a.
    • Panigrahi and Mohapatra 2010b.
  • 42. Jasmine Social Investments, "IDEI By the Numbers," Sheet financials.
  • 43. International Development Enterprises India, "Number of Customers for the Products by Year."
  • 44. "First, we are working in areas that have not reached market maturity and which we are not ready to exit. If we exited tomorrow, all the money that went in would be at risk. We would like to continue to work in those areas. I could get you the figure of how much that would cost. The longest funding we have is for 6 years. There are many areas where if the funding does not continue, we would have to exit. Second, there are a number of product ideas that need to be tried out and tested. A few years ago, we got a grant from a U.S. foundation that recognized our work in product development and funded the purchase of land and buildings to create a permanent development center. Thirdly, India has 600,000 villages and we are only present in about 15,000. Our presence is about 2-3% of all villages. There are a number of places where we don't work and where farmers face similar problems to the ones we are trying to solve. We could go to those places at set up markets." Suresh Subramanian, phone conversation with GiveWell, March 11, 2011.
  • 45. Suresh Subramanian, phone conversation with GiveWell, June 11, 2011.
  • 46. Suresh Subramanian, phone conversation with GiveWell, June 11, 2011.
  • 47. Jasmine Social Investments, "IDEI By the Numbers," Sheet financials.