Indian Management Wed, 01 Feb-12 Pg# :87 Size : 1602 sq.cm.

INCLUSIVE GROWTH

roject Shakti is a rural distribution in itia

P tive o f Hindustan Unilever Lim ited (HUL)

that targets sm all villa g es populated by
less than 5,000 individuals. It is a unique
w in -w in in itiative that catalyses rural affluence
even as it benefits business.
Project Shakti benefits business by s ig n ifi
cantly enhancing HUL's direct rural reach, and by
enabling HUL's brands to communicate effectively
in m edia-dark regions. It also im
pacts society by creating liv e li
hood o p p o r tu n itie s fo r u n d e r
p rivileg ed rural wom en. Project
Shakti impacts society in two ways
the Shakti Entrepreneur p ro
gram me creates livelih ood op p or
tunities fo r underprivileged rural
women.
The Shakti EntreDreneur (SE)
program m e recognises that w hile
m icro-credit plays a key role in a l
leviating poverty, its ability to do
so depends on the availab ility o f
investm ent opportunities. Shakti
contributes by creating profitable
micro-enterprise opportunities for
rural women. Armed with m icro
credit, rural women become Shakti
entrepreneurs: Direct-to-home dis-

Hindustan Unilever's Project Shakti shows how economic development

can be brought about through micro enterprise

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 INCLUSIVE GROWTH

Through the'
Shaktimaan initiative,
men in the Shakti
SH AKTI ENTREPRENEUR EA R N S
Amma families
distribute HUL products ^ 700-^ 1,000
to villages adjoining the A MONTH
respective Shakti village

tributors in rural markets. This m icro-enterprise
offers low risks and high returns. The products
distributed are some o f the country's most trusted
brands o f consumer goods, and include a range
o f mass-market products especially relevant to
rural consumers.
Moreover, HUL invests its resources in training
the entrepreneurs, helping them become confident,
business-sawy professionals capable o f running
their own enterprise.The SE is also called as 'Shakti
Amma' 'Shakti' means 'power/empowered' and
'Amma' means 'mother' inTelugu the language spo
ken in Andhra Pradesh where Project Shakti was
first piloted in 2000. Project Shakti has proved to
be a great success fo r HUL and for rural im p ov
erished women in India. The project started in a
few pilot villages in Andhra Pradesh in 2000. In
2002 it expanded to tw o states and by the end o f
2004 had grow n to over 13,000 Shakti women en
trepreneurs in 12 states. Today there are about
45,000 Shakti Ammas across 15 states in India.
In 2010, HUL rolled out the Shaktiman in itia
tive through Project Shakti. Through the Shakti
maan initiative, men in the Shakti Amma fam ilies
distribute HUL products to villages adjoining the
respective Shakti village. Through the G eograph
ica l In fo rm a tio n System , v illa g e s around the
'Shakti' fam ilies are tracked and based on this they
are allotted five to six villages. They go to these
villages and sell HUL products. The Shaktimaan
have also been given bicycles to ensure smooth
travelling between villages.
HUL now has over 26,000 Shaktimaans (through
the Project Shakti network) across the country now.
The revenue earned by the Shaktimaan further aug
ments the household income o f the 'Shakti' fam
ily. Shaktimaans covering about five to six villages
adjoining the Shakti village.The revenue earned by
the Shaktimaan further augments the household
income o f the respective 'Shakti' family.
Through Project Shakti and Shaktimaan, HUL
reaches over 100,000 villages across 15 states in
India and over 3 m illion households every month.
HUL works closely w ith various NGOs, banks and
both state and local governm ent departm ents,
who recognise the potential for econom ic growth
by encouraging women to becom e entrepreneurs.
On an average, a SE earns ?700-?l ,000 a month,
and since most o f them live below the poverty line,
this earning is sign ifican t, often doubling the
household income. With the roll out o f Shaktimaan
initiative, Shakti fam ilies have an opportunity to
further augment their income. HUL is also eval
uating various opportunities to further strengthen
the income o f Shakti Ammas.
HUL has continuously endeavoured to augment
the income o f its Shakti Ammas. In 2011, HUL part
nered with the State Bank o f India to bring bank
ing services to low-incom e people in small Indian
villages through the Shakti Ammas.The Shakti A m
mas are already trusted by local communities and
make them a friendly and accessible way to pro
mote access to banking in rural communities and
thus promote financial inclusion. im
Contributed by Hindustan Unilever.

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