The case of Ikh Morin in Tugrug soum
How many successful new businesses can you start in one year? Herder group Ikh Morin started with making felt boots, bought moulds for brick production and has recently undertaken business in making coals for cooking. The money for the business plan was only provided to them in June 2010.
This herder group, consisting of 10 households, has one of the members living in the soum centre of Tugrug. Furthermore, this member owns a petty shop. It gives them opportunities to sell products directly to the clients. Therefore, the group decided to start making felt boots. With an investment of almost 5 million Tugrik (almost 4.000 USD), they bought equipments and started producing.
Soon they discovered that there was also demand for bricks and coals. Equipments were bought and currently a production of 50 pairs of boots a year, 200 bricks a day and/or 1500 coals a day can be made, besides the other regular activities the group members have. The boots are sold for 25.000 Tugrik to local people, the bricks are made if an order is placed and the coals are produced seasonably and sold on the Aimag market and ordered by special clients.
The profitability of the products cannot be calculate yet, as the prices of the raw products are varying, the equipments are just bought and the cost of labour is not fully estimated. However, 10% of the profits will be paid to the revolving fund. This fund now contains 300.000 Tugrik and small loans can be given to group members if needed or business investments can be made with it. One poor female herder group member now has a job in making the felt boots and several others are seasonable involved in making bricks and coals.