Though Rajeev Kher, the Managing Director of 3S India and Saraplast, could have chosen to make a career in the US after doing his MBA from Pune, he returned to India to start a unique enterprise - one that provides portable toilets for construction sites, exhibitions, weddings, concerts, and so on. The interesting part of his entrepreneurship is that it combines a business model while taking care of a pressing social need.

The statistical data is appalling. Over 1,000 children die everyday in India because of the lack of sanitation. How can that be in a country that speaks of being counted among the developed nations very soon? How is that possible in a country, which has always been proud of its culture and a traditional but clean way of living? But this is the grim truth and no one understands this better than Pune-based Rajeev Kher. And not only does he understand it well, he is perhaps one of the very few who has actually set about to do something constructive to change the depressing scenario. And no, he does not run an NGO or a charity organisation. He does it with the same flair and acumen, as would a leading entrepreneur. His company, 3S India, has done pioneering work in introducing the concept of portable sanitation products with the unique concept of manufacture, service and lease.

"Sanitation is a basic need that is denied to a large part of the population. Up to 25 per cent of urban India lives in slums, and the facilities at best are minimal. Therefore, when I saw portable toilets being used in the United States, I was struck by the potential impact something like this could have in India," he says. The company thus makes toilets and leases them out to whoever needs them as well as follows it up with the maintenance as well. "We work with NGOs, municipalities and companies to set up portable toilets at unserved sites. These range from slums to construction sites and events. The basic shell is imported, while all the other parts are made at the factory of our parent company, Saraplast," Kher informs. The company is now running a pilot where it works in collaboration with local NGOs to set up and maintain these toilets in slums. Next on Kher's wish list is collaboration with the government which will really give the business the kind of scale it really needs.

A management graduate from Symbiosis College, Pune, it was Kher's passion for better sanitation that led him to create India's very first 'portable sanitation' and waste management services company in 1999. It has since then become a revolutionary concept, creating a phenomenal social impact business model, which is present in numerous cities all over India. The company today is amongst the 50 top social impact enterprises in India which manages and safely disposes 155 million litres of liquid waste annually as per the environmental norms; saves more than 104 million litres of fresh water; and offers dignity to more than 0.2 million users annually. "New product development, innovation in service and design leading to micro enterprise building and creating business opportunities and incubation models is an important area of growth," he states.

Kher started the company fresh out of B-school. "Many of my batch-mates are CEOs and senior VPs, but the thrill that comes from doing something on your own is totally different. Sure I may not make as much money as my friends, but the satisfaction is immense," he says. Kher has worked in India and abroad in marketing, strategy, sales and business development prior to starting this company.

The unique part of his enterprise is that he makes profits with a conscience. Kher is clear that he will continue to follow an inclusive growth pay-and-use model. "We decided right at the beginning that if we are to run this as a business, there has to be a profit motive," he says. Two years ago, micro venture capital fund Aavishkaar India invested in the company. The company currently has 3,000 toilets, and between 15,000-18,000 services a week. The plan is to scale it up from the current seven cities to 30 over the next few years. The business opportunity, based on back-of-the-envelope calculations, is about Rs 600 crore.

The company offers portable toilet units in a variety of product designs for varied uses, with different service contracts depending on the needs of clients. Products offered include Indian squat type toilets, western toilets, and toilets for physically challenged, urinals, washstands and shower cabins as well as also septic tanks. And along with the products, it provides various cleaning and liquid waste management services such as evacuation and cleaning vehicles with technicians and a driver wherein the cleaners are provided with sanitised equipment to carry out their jobs efficiently and cleaning of septic tanks.

So what is the USP of these products made by Kher? "Unlike others our units are made of polyethylene material, which is durable and robust and much stronger than the fibre units available in the market. Also these are 100 per cent recyclable and eco-friendly. The USP of our product is that it comes with an assured service, i.e., our fleet of evacuation and cleaning vehicles with trained technicians ensure that each and every toilet remains clean and pristine for use. The unique business model of polyethylene portable sanitation service teamed with a powerful management and continuous team efforts has made a difference in the common man's life in India. You can now see these toilets at various construction sites, religious gatherings, events and even tourist sites where formerly finding a clean toilet was a major issue," he replies.

The plant has a manufacturing capacity of producing 10,000 units per year and some of its reputed clientele include DLF, Amanora Park Town, Marvel Realtors, Procam International, Sunburn, L&T, Lavasa, ABIL Group, Red Chillies Entertainment, and others. Having posted a record annual turnover of Rs 13.67 crore last year, the company now has a target of crossing Rs 50 crore over the next two to three years. "We intend to provide sanitation facilities to 1 million users everyday through our portable units to under-served and un-served settlements in 8-10 cities in the next 3-5 years," Kher states. 3S presently has its offices operational at Pune, Mumbai, Chennai, Bangalore, Delhi and Hyderabad with a plan to start operations in Bihar, Ahmedabad, Nashik and Kochi. "We have deployed portable toilet cabins (PTCs) at each of these locations and have a fleet of evacuation vehicles and cleaners at these spots to ensure delivery of standard services," he informs.

But it is not as if it is a business without its share of rough rides. A key challenge that the company faces is its high dependence on the construction industry as a source of revenue. "Saraplast is addressing this challenge by diversifying its business to cater to a variety of stakeholders, and particularly focusing on expanding its pay-per-use model in slums, hence not relying heavily on the construction sector for revenue. Another challenge is the dependence of its business on permissions from urban municipal authorities and local governments, particularly while deploying PTCs on unauthorised/illegal slum settlements. To address this issue, the company intends to focus its efforts on brokering partnerships with municipal and government authorities," Kher reveals.

For further details, write to Riju Maurna. Email: riju.maurna@3sindia.com