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SABRAS the second salt march... an enterprise impacting the lives of 12,000 small salt producers & 2,50,000 workers of India. Rajesh Shah Chairman & Managing Director May 2010. Theory of Change. If the comparative strengths of

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Rajesh shah chairman managing director may 2010
SABRAS the second salt march... an enterprise impacting the lives of 12,000 small salt producers & 2,50,000workers of India

Rajesh ShahChairman & Managing Director

May 2010

Rajesh shah chairman managing director may 2010

Theory of Change

If the comparative strengths of

aggregated small salt producers & professional managers are combined,

then small salt producers

will have access to

markets, technologies & institutional credit,


significantly increasing their livelihoods.

Rajesh shah chairman managing director may 2010

Indian Salt Industry Overview

India: 3rd largest salt producer

Current Production: 200 lac MTs

Current Utilization


  • Human use 40%

  • Industrial use48%

    Export 12%

    Current Volume: Rs. 7500 Cr

    By 2020 Production: 400 Lac MTs

Rajesh shah chairman managing director may 2010


India’s Salt Producers

  • Total 13,000

  • Small salt producers11,700

  • Production36%

  • Market Value 2854 Cr

    Salt workers only get 3.35% 86 Cr

    Salt workers in

  • Production 1.5 lac

  • Handling 1.0 lac

Problems to be solved
Problems to be solved

Health Problems

  • Due to constant exposures to

    - High temperatures,

    - Dusty winds,

    - Glare & Salty water in desert

  • Salt producers - Suffer

    - High blood pressure,

    - Eye & skin diseases

    - lack of access to water, health, education and community life.

when agarias are cremated their feet do not burn as they contain lots of salt.

Problems to be solved cont d
Problems to be solved (cont’d)

Economic Problem

  • A salt producer annually Produces 10,000 - 12,000 MT

  • Cost of Production Rs. 70/MT

  • Borrows : Rs. 50,000 from local trader and locks the sale price

  • Sale price : Rs. 80/MT

    • Earns: Rs. 10,000 – Rs. 12,000 per year

  • Salt producer only get between 1% - 8% of the final market price

The value of the bag is more than the salt it contains

Salt Producers operate individually and do not have access to institutional credit, technology & markets

Rajesh shah chairman managing director may 2010


Formation of the Company

February 2007


Procuring, processing, packaging and marketing salt in Kutch, Gujarat

Ownership Structure

85% SAVE Ltd (Technical Service Organisation)

15% Salt Producers

Governance Structure

Three Directors (One from SAVE and Two from salt producers group)


Professionals Managers

Management team
Management Team

Rajesh Shah CMD of the SABRAS is an architect by training and

MD of SAVE Ltd, having 30 years of engagement

in social & commercial sector

UmarKureshi Manager Production, having 40 years of experience

in salt production in Little Rann of Kutch

Suresh Thakkar Manager Marketing, having 35 years of experience

in Marketing of fruits & vegetables, spices & salt

MukeshThakarAsst. Manager, having 10 years of experience in salt

production in Little Rann of Kutch

Vijay SolankiField Supervisor

Chetan Mehta Accountant (part)

RohitDudhelaCompany Secretary (part)

Business model


  • Strong relationships with salt producers

  • Understand community

  • Governance

  • On-site support

  • Regular field visits with salt producers

  • Access to credit / asset ownership

  • Govt. subsidies

  • Guarantor to banks Loans / interest paid with salt sale proceeds

  • Industry expertise

  • Experience in production and distribution

  • Market access

Salt supply chain sabras
Salt supply chain & SABRAS

Pass on surplus to salt producers

Rs. 120 MT

Rs. 7,200 MT


Future (Over next three years )

Sold 30,000 MTs of salt

Increased procurement price from by from Rs. 80 MT to Rs. 125 MT

Trial of two solar pumps

Reduce transportation costs

Provide 250 Solar pumps

Achieve annual sale target of 1,25,000 MTs

Explore production of by products

Initiate Brand Development

Rajesh shah chairman managing director may 2010


Technology, Volume,

By-products, Brand

Solar opportunity

  • Solar pumps save 4 metric tons of CO2 per salt producer per annum

  • Producers can recoup capital costs within 3 years

Data based on field trials supported by

National Bank for Agriculture and Rural Development (“NABARD”)

Growth plans resources linkages
Growth Plans: Resources Linkages

  • Scaling up Partner

    • Agaria Hitrakshak Sangh (AHS) with 4,500 members. A representative is a member of board of directors of SABRAS

  • Knowledge Resources

    • Tied up with Central Marine Chemical and Salt Research Institute, (CMSCRI), Gujarat, India

  • Financial

    • NABARD , local banks& Government have agreed to provide credit linkage for salt production & purchase solar pumps.

Rajesh shah chairman managing director may 2010



30% cash subsidy


  • Links bank/govt./

  • pump supplier

  • Procures salt

  • Repays loan

  • Salt Producers

  • 5% margin money

  • Repayment 500 MT of salt for three years


Bank 70% subsidized loan

  • The Ask: Rs 1.5 Crore revolving overdraft facility