Marketing ‘Potential Eco-Innovations’ Successfully: A Case Study of Banka BioLoo
Banka BioLoo’s vision and mission (Exhibit I) proved its desire to serve the marginalized sections of society and set up eco-friendly toilet facilities where there were none. In this regard, its challenge was to decide whom to serve and how. Namita Banka (Namita), the founder and CEO, Banka BioLoo and Sanjay Banka, the Managing Director, Banka BioLoo, were facing twin dilemmas. The first issue was whether to serve the rural market with affordable bio-loos for households or cater to the underserved market of public toilets for urban women. The second was how to market the bio-toilets to the chosen segments.....................................
Brief History of Banka BioLoo
When Namita Banka shifted to Hyderabad in 2008, moving away from her jewellery business, she set up Banka Enterprises. The firm started supplying eco-friendly products to corporations. Then, Banka Enterprises moved to function as a service agent for Vibhu Composite Works and Aikon Technologies Pvt. Ltd, which was Original Equipment Manufacturers (OEM) of Controlled Discharge Toilet System (CDTS)............
Banka BioLoo Pvt. Ltd: Past and Current Business Performance
Banka BioLoo facilitated eco-friendly sanitation solutions (manufacturing, installing and maintenance) to a variety of users which included large construction firms for their on-site operations, the Indian Railways, schools, resorts and industrial factories. It also provided rentals and operations and maintenance of mobile bio-digesters (such as in trains) and consultancy for the development of large bio-tanks...............
Motivation
Around 50% of the Indian population defecates in the open. Out of this 50%, the majority are rural people. This was a big enough motivation for Namita to enter the bio-toilet business. Often, open defecation is considered to be a rural problem. However, while Namita realized the importance of introducing toilets in rural areas, she also believed that the problem was as serious for urban women. She maintained that the rural women could at least find spaces in village for open defecation............
Bio-digester
A bio-digester (Exhibit V) uses anaerobic bacteria to decompose fecal waste. Anaerobic digestion is a natural process in which bacteria break down organic matter in the absence of oxygen to form biogas and digestate2.Anaerobic digestion uses bacteria to break down waste organic materials into methane and other gases, which can be used to produce electricity or heat. Anaerobic decomposition is a complex process that occurs in three stages...........
Banka BioLoo’s Bio-digester
DRDO developed the technology of using anaerobic bacteria for decomposing fecal waste in India. In 2010, DRDO extended the technology to the civilian population by licensing the biotechnology to commercial firms. This technology took shape in the form of an eco-innovation called the bio-digester. One of the firms to use this technology was Banka BioLoo..............
Benefits of Bio-toilets
The environmental benefits of bio-toilets included treating of waste at source without using energy. The bio-toilet had lower water requirements than a conventional septic toilet. After treatment, the effluent left was 1.5 times lower in volume than the waste in a septic toilet. The treatment in bio-tanks did not emit any foul smell of decomposition. The water released from the system was pathogen free which could be utilized in purposes like gardening or construction...........
Financial Growth
The founders’ and promoters’ personal savings contributed to the startup capital of INR1.25 crore. As the business grew, bank credit line was put in place, along with external investment. In July 2015, the company had equity capital of over INR2.2 crores and loans of nearly INR2.5 crores............
Partners
DRDO and the Indian Railways provided technical support to Banka BioLoo. Banka BioLoo worked with NGOs and the non-profit sector to install toilets in rural areas. Some mentionable partnerships were Banka BioLoo’s work with Githam University and Engineers Without Borders (EWB) at Rudraram village near Hyderabad............
Business Model
Banka BioLoo operated on a build (the sanitation infrastructure) and maintain (in case of entities such as Railways) basis. It built and sold the system to independent owners - railways, construction companies, schools, industries with or without the toilet superstructure. Often, Banka BioLoo did the maintenance and re-installation for a fee (Exhibit VI)..........
Organizational Structure
Banka BioLoo had a flat organization structure (Exhibit VII). Due to the elimination of mid-management, the decision making was quick and based on shared decision making, which saved costs and made the work culture adaptable and innovative.............
Challenges
The challenges that Banka BioLoo faced in its initial years could be summed up in Sanjay’s words. “Getting the license was not easy. Banka Enterprises was a small firm, with not a lot of financial strength compared to bigger players. A lot of convincing to the DRDO officers and scientists was required. A couple of visits were made to the DRDO offic............
Assignment Questions
I. The bio-toilet/digester has been referred to as an eco-innovation in the case. From the distinction pointed out between eco-innovations and ‘potential eco-innovations’, do you think the bio-toilets are still eco-innovations in the context of the targeted segments?
II. ............
Exhibits
Exhibit I: Banka BioLoo’s Vision and Mission
Exhibit II: Banka BioLoo – Journey so Far
Exhibit III: Size of the Expected Social Impact
Exhibit IV: Future Expectations (2015-16)
Exhibit V: A Bio-digester
Exhibit VI: Business Model of Banka BioLoo
Exhibit VII: Organizational Structure – Banka BioLoo
Exhibit VIII: Biases against Toilets in India
