The Rs 10,957-crore Hindustan Petroleum Corporation (HPCL) entered the rural markets two years ago. The idea was increased market development that would then lead to the sale of its LPG cylinders. Before kicking off the pilot study in Uttar Pradesh, it set up community kitchens in forest areas. However, the investment required was a steep Rs 1.5 lakh-2 lakh per kitchen and the response was not very good. Then, it decided to work on the project jointly with MART (Marketing and Research Team, Delhi). With the JV in place, a single community kitchen costs about Rs 10,400, including the cylinders, equipments, manpower, etc.
Businessworld
JANHAVI ABHYANKAR
This JV has reduced the setting up costs, because MART helps HPCL in creating awareness among the people and setting up the kitchens. Since the Rs 200-odd per cylinder seemed unaffordable for the rural poor, HPCL also came up with Rs 95 cylinders, with 5 kg gas in each of them.
There are now 589 rasoi ghars in place, with another 720 planned by the year end in UP, Madhya Pradesh and Orissa. HPCL has about 50 per cent penetration in the four districts of UP where it started off. Not only do they cook in community kitchens, but self-help groups are also taking interest in the project. What they do is pool a certain amount of money and when about Rs 800 (the cost of an individual connection) is collected, they have a lucky draw and the woman who wins gets her own connection.
This project has several social benefits for now. First, it helps in making the women independent. Second, it also enables safe and healthy cooking. A World Health Organization study revealed that Indian women who use firewood for cooking inhale the same amount of carcinogen benzopyrene as if they were to smoke 20 packets of cigarettes a day. With clean fuel becoming available, women are saved of long, tedious walks into the forest. This has not only reflected been in mothers’ health, but also in young girls’ school attendance, which has gone up by approximately 10 per cent. Third, it saves the environment. Every 100 rasoi ghars help save about 3.6 million trees per annum.
According to Harish Arora, brand manager (LPG), HPCL, this is on a no-profit no-loss basis. However, in the long term, this project might generate revenues for HPCL . It is more focused on selling the concept and making people aware of things at present. They are working with various NGOs and hospitals, among others. The project with MART is one of the successful ones. “Soon we plan to make branded food available in villages where we plan the next 720 kitchens,” says MART’s Singh. A proposal for setting up 80,000 such rasoi ghars is currently pending with the Prime Minister’s Office.
