Page 9 - Discussion Paper on Faecal Sludge Management in Urban India
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Discussion Paper
BOX 2: SANERGY BUSINESS CASE STUDY
Best Practice Case under FSM Entrepreneurship Model
ORGANIZATION PROFILE
Sanergy, a for-profit social enterprise based out of Kenya was set up in November 2011. The
company manufactures and designs sanitation facilities that are low cost and high quality. Sanergy
initially focused on developing an intricate network of pay-per-use toilets throughout informal
settlements of Nairobi and collecting their waste to convert it into organic fertilizer and biogas.
Gradually, they added additional distribution channels to cater to a large, diverse population and
also looked at the scope of other by-products of processing the waste.
BUSINESS MODEL
Sanergy follows a franchise model and thereby distributes the toilets to the community, and
the community members are responsible for running them. This has resulted in employment
opportunities for the slum dwellers by appointing them as Fresh Life Operators and also improving
the sanitation as well as hygiene status of the community. These operators run the toilets and
charge a nominal fee per use. The price is set by the operators themselves based on the market.
Most of the Fresh Life operators own more than one toilet and find a feasible and viable business
in these toilets since they are able to accrue a profit of $1000 per toilet on an average every year.
Services are provided to the Operators to maintain quality sanitation facilities. These operators are
provided training by the company along with access to finance as well as operational and marketing
support. It is the job of the operator to create demand for these Fresh Life Toilets in their community
and also to keep them clean. Daily waste collection services are provided by the company itself.
The company generates revenue through three main channels:
Sale of sanitation units, these are designed at $500 a unit; waste collection services for non-Sanergy
service providers, primarily for producers of food waste; and sale of by-products from human
waste, predominantly organic fertilizer and insect-based feed.
IMPACT
Sanergy has managed to install 732 active Fresh Life Toilets in the informal settlements. Around
8504 metric tonnes of waste has been successfully removed from the community and treated by
the company. The company has also been able to create 788 jobs for the community, including the
Fresh Life Operators as well as the attendants who they hire as they expand.
This kind of an example provides learning for India in terms of engaging the private sector in
the sanitation chain. With efforts toward incentivizing and making participation in the sanitation
chain economically beneficial, private players can be attracted towards improving the situation of
sanitation in the country.
(Source: http://saner.gy/our-work/the-sanergy-model, Accessed on July 25, 2016)
DECEMBER 2016 9
BOX 2: SANERGY BUSINESS CASE STUDY
Best Practice Case under FSM Entrepreneurship Model
ORGANIZATION PROFILE
Sanergy, a for-profit social enterprise based out of Kenya was set up in November 2011. The
company manufactures and designs sanitation facilities that are low cost and high quality. Sanergy
initially focused on developing an intricate network of pay-per-use toilets throughout informal
settlements of Nairobi and collecting their waste to convert it into organic fertilizer and biogas.
Gradually, they added additional distribution channels to cater to a large, diverse population and
also looked at the scope of other by-products of processing the waste.
BUSINESS MODEL
Sanergy follows a franchise model and thereby distributes the toilets to the community, and
the community members are responsible for running them. This has resulted in employment
opportunities for the slum dwellers by appointing them as Fresh Life Operators and also improving
the sanitation as well as hygiene status of the community. These operators run the toilets and
charge a nominal fee per use. The price is set by the operators themselves based on the market.
Most of the Fresh Life operators own more than one toilet and find a feasible and viable business
in these toilets since they are able to accrue a profit of $1000 per toilet on an average every year.
Services are provided to the Operators to maintain quality sanitation facilities. These operators are
provided training by the company along with access to finance as well as operational and marketing
support. It is the job of the operator to create demand for these Fresh Life Toilets in their community
and also to keep them clean. Daily waste collection services are provided by the company itself.
The company generates revenue through three main channels:
Sale of sanitation units, these are designed at $500 a unit; waste collection services for non-Sanergy
service providers, primarily for producers of food waste; and sale of by-products from human
waste, predominantly organic fertilizer and insect-based feed.
IMPACT
Sanergy has managed to install 732 active Fresh Life Toilets in the informal settlements. Around
8504 metric tonnes of waste has been successfully removed from the community and treated by
the company. The company has also been able to create 788 jobs for the community, including the
Fresh Life Operators as well as the attendants who they hire as they expand.
This kind of an example provides learning for India in terms of engaging the private sector in
the sanitation chain. With efforts toward incentivizing and making participation in the sanitation
chain economically beneficial, private players can be attracted towards improving the situation of
sanitation in the country.
(Source: http://saner.gy/our-work/the-sanergy-model, Accessed on July 25, 2016)
DECEMBER 2016 9
