PowerMundo strives to improve people's lives and conserve nature by connecting millions of people in developing countries to market driven, affordable, appropriate technology.
Business Overview
Imagine paying $10 per month to light your home with a single kerosene lantern or cooking dinner on a campfire in your kitchen. Amazingly, over half the people in the world do not have access to safe and affordable products to meet their basic needs for these simple tasks like cooking meals, lighting homes, or purifying water. As a result, billions of people suffer from preventable illnesses, deplorable living conditions, and energy poverty. Surprisingly there are hundreds of affordable products that can safely meet people's daily needs, save people money, and conserve the environment. If these appropriate technologies exist then why are billons of people who live at the base of the economic pyramid not using these products? To address this problem, we have established PowerMundo, an innovative marketing, wholesale distribution, and micro-franchise company that connects people living in poverty to a network of sustainable resources. We manage a worldwide distribution network for clean technology products and support local economic development in emerging markets. As a result, we improve people’s lives, create employment opportunities, and conserve natural resources.
Initial Target Market
After reviewing eight Latin American markets (excluding Brazil), PowerMundo identified Peru as one of the largest underserved markets for appropriate technology. In Peru, 9.2 million people use traditional biomass cook stoves and 7.5 million Peruvian’s live without electricity. Worse yet, 20,000 Peruvians die each year due to respiratory infections. Similarly, the two leading causes of death for Peruvian children under the age of 5 (excluding newborns) are from pneumonia and diarrheal diseases. Many of these health problems are directly related to indoor air pollution and poor sanitation. To reverse these startling statistics, PowerMundo is targeting the most economically disadvantaged areas of Peru where millions of people lack access to affordable appropriate technology solutions. Following our success in Peru, we will scale up our operations to reach other Latin American markets and other underserved areas of the globe.
Products and Services
PowerMundo coordinates a global network of suppliers, retailers, sales people, and microfinance institutions, to design, brand, and distribute appropriate technology. Our business funnels market information to product suppliers, which helps them develop products that satisfy base of the pyramid customer preferences. Suppliers and manufactures greatly value our services since they receive market research and increased sales with no increase in their marketing budget. PowerMundo supports local economic development by training salespeople to become product distributors. Our microfranchise model creates new jobs and disseminates our products in traditionally hard to reach areas. All products distributed by PowerMundo pay for themselves in less than one year and are healthy for people and the planet. For example, a $25 solar lantern eliminates a $10/month kerosene lamp expense, minimizes indoor air pollution, and reduces CO2 emissions. Our initial product line includes multiple models of: efficient biomass cook stoves, wind-up radios, solar cell phone chargers, and renewable energy lanterns.
Management Team
Our management team has lived and traveled extensively in Latin America and Africa. The team has high level management and entrepreneurial experience in the oil and gas, construction management, and economic development fields. All members of the management team are fluent in English and Spanish.
Our social venture earns a small margin on each product sold to sustain our operations. Additionally, since many of the products that PowerMundo sells reduce carbon emissions, the enterprise will reduce product prices by selling carbon credits on a voluntary market. Moreover, our independent sales representatives earn a margin on each product they sell. Our financial projections estimate that we will reach profitability within three years. However, we need additional initial financial support from social minded institutions and investors to get started.
Undercapitalization is the primary obstacle we face. However, we are actively raising funds to overcome this challenge. Fluctuations in commodity markets also pose a risk for PowerMundo, but we are working with our suppliers to maintain a stable cost structure. Finally, since PowerMundo is operating in multiple countries currency exchange fluctuation is also a risk. Fortunately, PowerMundo can execute currency futures contracts to minimize this risk.
PowerMundo's Goals for 2009 are:
Build and manage sustainable appropriate technology supply chain in Peru.
Distribute over 10,000 appropriate technology products to customers.
Provide base of the pyramid market data to our suppliers, product designers and other inventors and innovators.
Reach over 500,000 Peruvians through print and radio to raise awareness on the benefits of using healthy affordable appropriate technology.
| Additional Project Idea Representative: | Jacob Castillo | |
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| Additional Project Idea Representative: | Michael Callahan, P.E. |
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Comments
Thank you for providing that
Thank you for providing that very interesting article! This PowerMundo will be a great help to improve the lives of many people. Thanks to them. With our topsy-turvy economy, we cannot deny the fact that many of us don’t have enough access to appropriate technology mainly because of financial hardship. The soaring gas prices and food cost are some of the burdens that we usually faced these days. Wherever you turn, many people including car owners are seeking for ways on how to save money. Automotive expenses pile up quickly, as fuel costs – thankfully low now, but they will be returning – then you have maintenance, insurance, and then extras like stereo equipment and so on. A car can run you into payday loans easily, and during an economy in recession, it doesn't seem justifiable. Want to save? Here are some tips. First, don't drive short distances. A two block trip to the grocers is actually one of the worst things to do to your engine. Walk if you can. Use public transport, and also don't lead foot. You use more gas, and those tickets can get nasty-- some automotive expenses you don't want. To read more visit, http://personalmoneystore.com/moneyblog/2009/03/31/surviving-recession-e...