Sarvajal – the branded name of Piramal Water – means “water for all”. It operates on the principle of franchise ownership in rural areas in several states across India and currently uses reverse-osmosis filtration, as per WHO standards. There are several for-profit providers in the clean water space in India, but Sarvajal offers the lowest price point at 25 paise (less than one US cent) per liter, without subsidies.
Business Model
The company’s efficient business model, based on scalable delivery solutions undertaken by local entrepreneurs, contributes to this attractive price point. After making an initial investment, local operators enter into a profit-sharing scheme with Sarvajal, which in turn covers capital and maintenance costs. Entrepreneurs are therefore incentivized to bring clean water to as many people in the community as possible, instead of focusing on system maintenance.
As it continues to evolve its model, possible future developments include “ATM-like” water kiosks placed in convenient locations and fully automated refinery systems.
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