But before that a quick word on Mr Lokhande himself. An entrepreneur, he set up his business of gathering data about villages in India a few years ago. He gathered data about cultures, customs, local administration...of about 28000 villages in India. Sold the database to Parle and Tata Tea. He currently works with various companies, helping them to carry out their marketing campaigns in the rural areas, with particular focus in Maharashtra, Gujarat and Madhya Pradesh. His company's name: Rural Relations. His car: Mercedes Benz.

(Disclaimer: The examples quoted below need not necessarily be the companies he has worked with)

Reliance Money is the online financial services and stock trading arm of the Reliance group. Through it's web site, you can trade on the Indian stock markets. Reliance Money's management decided to take this to the villages.

They set up a 1000 franchisees in a 1000 talukas. A chosen taluka had at least one nationalized bank and one Agri-Produce Marketing Committee. Each taluka had one franchisee. Each franchisee was located in a prominent part of the town, on a main road; the objective: maximum visibility.

Only two youths were recruited for each franchisee. One to run the place and one with knowledge of computers to handle the technical part at the outlet. The youths were recruited from the town.

Each outlet has an Internet connection and a computer provided by Reliance. Each outlet is well done up with the Reliance Money display boards and banners; it's hard to miss the lively color of the display, set in the otherwise monotone surroundings.

Given these settings, the shop attracts a lot of attention and a lot of curiosity. Now you might ask "How much do the villagers know about the stock market?". Ho ho... apparently you'll be surprised at how much they know. And even if they don't know much, the mechanics of it are simple - buy at lower rate, wait for prices to rise, and sell.

Now although he did not mention details about rates, prices and benefits to the village investor, he did mention that every outlet needs only 500 members to break even. Given that a taluka is a center of business and the "affordable rates", most of the outlets are doing quite well.

Looking at the economics of it, Reliance has effectively engaged a workforce of 2000 youth - that's 2000 new jobs. Money from the far off parts of the country is flowing into the capital market (Effective utilization of money?).

And the happiness of the families of the employed youth, "My son has his own shop. He works for Reliance." - the families feel their youth have "become someone" - Reliance is a big name with a big reputation in the villages. The employed youth are now able to finance a motorbike, normally a possession of a rich person in the town. Next stop: cell phone, sun glasses...you get the idea.

Reliance Money is contemplating growing to another 1000 talukas. Imagine, 2000 talukas catering to 2.5 lakh villages… think of the distribution channel!!!

Next Post: Asian Paints, Ghattu and how they marketed their new distemper paint.