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SPOUTS of Water: Overview & Path Forward The Problem: Unclean - - PowerPoint PPT Presentation
SPOUTS of Water: Overview & Path Forward The Problem: Unclean - - PowerPoint PPT Presentation
SPOUTS of Water: Overview & Path Forward The Problem: Unclean drinking water has major negative health, economic, and social ramifications for Uganda Over 50% of Ugandas 44M population drinks untreated water and another 44% boil water
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The Solution: SPOUTS produces the Purifaaya filter line – the only locally made water filters in Uganda
Purifaaya Household Purifaaya XL
20 liter capacity (serves 10) Retail price of 90,000 UGX (~$25) 65 liter capacity (serves 50) Retail price of 300,000 UGX (~$83)
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The Solution: The Purifaaya is an effective and locally produced solution
The Purifaaya ceramic water filter effectively eliminates 99.9% of bacteria… …and is produced in our factory right
- utside of Kampala
Anatomy of the Purifaaya SPOUTS factory in Nakawuka, Uganda One of 15 factory workers helping produce the ceramic water filters
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Ceramic filter before firing Local production worker making ceramic filters Customer tasting Purifaaya at Vine Pharmacy Family enjoying Purifaaya water
The Solution: By locally manufacturing ceramic filters, SPOUTS provides a sustainable solution to Uganda’s needs
Effective Convenient Cost-efficient Sustainable
Proven 99.9% effective by the Uganda Ministry of Water and Environment Designed with the “consumer-in- mind” to ensure low maintenance and enjoyable taste Only filter produced in Uganda from locally sourced materials to guarantee affordability Integrated into local economy to create staying power
- Microscopic holes in the
filter remove bacteria from water
- Silver nitrate coating
ensures water stays pure
- Filter lasts for 2-5 years
and requires low maintenance (simple cleaning every ~2 weeks)
- Semi-translucent bucket
allows easy monitoring of water level and prevents recontamination
- 99% of raw materials are
sourced from Uganda
- Local production limits
transportation costs and stimulates the economy
- 80% of commercial sales
sold through our innovative Direct-to- Consumer (D2C) Sales model
- ~90% of our staff are
Ugandan, and this percentage is growing
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Inception
(2010 – 2014)
History: SPOUTS has built the foundation for a strong business over time
- 2010 – Kathy Ku interns in Uganda
and is struck by the lack of access to safe water
- 2011 – Kathy teams up with fellow
Harvard student John Kye to start SPOUTS of Water
- 2012 – Original factory is opened
to pilot production of filters
- 2014 – Kathy and John finalize
design for ceramic filter
- 2015 – First commercial sales are
made
- New factory opened, with an
annual capacity of ~100K filters
- New D2C Sales program offers an
innovative financing program making the product even more affordable
- Manufacturing process
streamlined to reduce costs and enable 40-50% gross margin
Pilot
(2015)
Fundamentals
(2016 – 2018+)
Original factory “Drinking” water collected by a child in Western Uganda Purifaaya on sale at a D2C presentation
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15,000
commercial sales
17,000
aid installations
32,000
filters sold
180,000
impacted
110,000 tons
CO2 reduction
40% of on-the-ground leadership roles filled by local staff
9.4k 11.6k 2017 2018 +25% 2018 +17% 2017 3.0k 3.5k 2017 6.5k +15% 2018 7.5k
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total staff
175k 100k 2017 +75% 2018 Int’l Local 10% 90%
SPOUTS is projecting to reach
- ver 300,000 end-
users by the end of 2019 Equivalent to the exhaust from 90,000 vehicles driven for one year
Source: Internal Sales Data as of June 30, 2017, Ignosi Purifaaya impact assessment, WHO Image Source: The Noun Project
Our impact to date: Below is our impact to date, with significant growth in 2018
SPOUTS is projecting to sell
- ver 23,000 filters
in 2019! SPOUTS projects to sell over 13,000 filters and 10,000 filters through its commercial and aid channels, respectively, in 2019!
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Scale
(2019-2020)
What’s Next: SPOUTS’ goal is to provide clean water to over 5 million East Africans in our first decade
- Develop sustainable business
- Increase production efficiency
- Expand sales & marketing efforts
- Diversify commercial sales channels
- Establish distribution points
- Demonstrate increased impact
- Secure Carbon financing accreditation
- Invest in software to better track impact
- Establish full-time customer service
department to track customer satisfaction
- Drive innovation in water space
- Develop new water filtration products
- Diversity product offering
- Expand into greater East Africa
- Open additional factory, distribution
centers, and offices in strategic locations in East Africa
- Scale D2C and other sales channels in
the new locations
- Adjust business model to reflect
needs of new footprint and scale
- Consider alternative products to
expand footprint in water / health care space (e.g., filter water bottles, industrial sized filtration)
- Expand into WASH advocacy
- Partner with other WASH-focused NGOs
and social enterprises to develop and implement education and awareness programs worldwide
- Become a worldwide resource
for best practices on effective water usage
- Become a platform for researching,
disseminating, and adopting WASH best practices including filter development, education programs, etc.
Expand
(2020 – 2025)
Lead
(2026+)
5 10M Targeted # people using the Purifaaya (cumulative) Scale (by 2020) 500k Expand (by 2025) 5M Lead (2026+) 10M
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Streamline PV data collection & sharing Diversify product and sales channels offering Streamline PV data collection & sharing
Drive innovation
Investment Plan: SPOUTS has identified a series of 8 projects across 3 major areas to achieve profitable scale
Develop sustainable business Demonstrate increased impact
Target profitability by 2019
H2 2018 2019 2021
Expand capabilities of impact assessment Streamline PV data collection & sharing Secure additional accreditation, including carbon credits
Begin building foundation to become leader in innovation for water in East Africa over next decade Adapt and improve
2020
Streamline PV data collection & sharing Enhance awareness and understanding among users Increase production efficiency
Realize and enhance value
Streamline PV data collection & sharing Improve distribution network and demand levels
Realize and enhance value
Build sustainable business
- perations
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Our team: Over 75 local and international staff work on the ground in Uganda across our factory and headquarters
Founders Leadership Team
Kathy holds a B.S. in Cellular and Molecular Biology and an M.S. in Engineering Science from Harvard
- University. She worked at BCG and McKinsey
before heading production at SPOUTS.
Kathy Ku Cofounder & Executive Director John Kye Cofounder & Executive Director
John studied Economics at Harvard University before moving to Uganda in 2014 to head the Sales & Marketing Team.
Moses Okeny Accounting & Finance Manager
Before joining SPOUTS, Moses worked for Platinum Credit Limited Dan has over 5 years working in the UK, focusing
- n logistics and NGO
- perations
Dominic Lyando Production Manager
Dominic worked for Wheatco. Industries Limited before joining SPOUTS.
Michael Nimoh Sales Director
Michael has over 5.5 years experience working in Strategy and Sales in India and Tanzania prior to joining SPOUTS.
Daniel Yin Chief Executive Officer
Has led SPOUTS for the past almost two
- years. Prior to joining, Daniel spent 2.5
years at Deloitte and another 2.5 years working in Finance.
Dan Gee After-sales Manager
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Thank you for your interest in SPOUTS of Water!
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Appendix
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Targeted focus areas across 4 workstreams... ...lead to future vision
Path forward - Sustainability: Investments to focus on production efficiency, sales capacity, and work environment
Funded Partially funded
Increase production efficiency
... Reduce failure rate and carbon footprint to bring down financial and environmental costs
Upgrade critical equipment to reduce failure rate Transition from gas to electric equipment to reduce carbon contribution of factory Enhance awareness & understanding Conduct wide-scale media campaign Roll out demos and education campaign in priority districts Scale up sales team for nationwide coverage
Shift from low market awareness to top of mind brand recognition in water purification space
Improve distribution network & demand levels
Expand distribution network to reach all Ugandans
Scale number of distribution points Expand existing partnerships Grow salesforce for nationwide coverage Build sustainable
- ffice
environment Restructure compensation to attract best talent Implement best-in-class systems (e.g., HR, Payroll)
Hire experienced, local staff in long-term contracts and upgrade SPOUTS systems
Grow local staff base, especially in leadership
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Targeted focus areas across the 3 workstreams... ...lead to future vision
Path forward - Impact and Innovation: Future work to target E&M, environmental impact, and new products
Funded Partially funded
Diversify product
- ffering
Secure additional accreditation
... Certification from all major international and local water agencies and formal carbon credits Regular impact assessments conducted to test hypotheses and prove effectiveness
Launch impact dept, conduct pilot assessment Fully staff
- dept. and run
quarterly impact studies Complete externally run large-scale impact study Secure additional health and safety accreditations including WHO and UNBS seals Qualify for carbon credits for filters Expand capabilities of impact assessment Revamp ceramic filter insert to disc Produce XL model Produce Purifaaya Plus model
Design innovative new ceramic filter to fully meet needs of Ugandan consumer and market
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The market: SPOUTS addressable market is significant and is served through three sales channels
53% don’t treat water (4.3M)
4% purify
44% boil (3.6M)
Currently, Uganda’s ~8M households treat their water in the following ways:
Total addressable market Journey of a Purifaaya filter
We believe all households boiling
- r not treating their
water are potential Purifaaya customers, creating an ~$170M market1 Further, households replace Purifaaya filters every 2-4 years, ensuring an
- ngoing market for
- ur product
Production
Materials sourced from local providers Filters produced in Nakawuka Filters stored in SPOUTS warehouse
Direct to consumer Sold through partners Aid sales
Any staff sells direct to consumers Sales staff sells to reseller partners Corporate staff sells to NGO partners NGO partners install filters in communities Sales staff assists resellers in end-user sales
Sales
- 1. Assumes current retail price of $23 per filter
Source: Uganda Bureau of Statistics (UBOS) and ICF International Inc. 2012
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Effective
Convenient
Cheap
Sustainable
The product: Competing water treatment solutions are not sustainable
Source: Uganda Bureau of Statistics (UBOS) and ICF International Inc. 2012
Breakdown of water treatment solutions in Uganda:
53% don’t treat water
4% purify
44% boil
Boiling No treatment Bottled water Imported filters Chlorine tablets
SPOUTS’ unique local production enables a sustainable solution
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