Aravind Eye Care Social
An overview of Aravind Eye CareAravind Eye Care Social, Economic and Legal [pic 1][pic 2]Definition and Context of a Social VentureA social venture is the one whose main objective is to serve the community. Social enterprise is where a social cause meets with running a sustainable business to make a profit. It is driven by the desire to fulfill a social objective rather than by a desire to make a profit. It has the profit component in order to sustain and meet its operating expenses. There are many social enterprises around the world which for the greater good of the community than earning more profits to fulfil the shareholders’ interest.  Aravind eye care is one such example. Aravind Eye Care System is the largest eye care centre in the world. It treats over 2.8 Million patients every year in India. More than half of its customer base is the rural mass. The basic objective of this enterprise is to make health care facility available to the most neglected and ignored population. It currently has centres 10 districts in Tamil Nadu, 2 Districts of Uttar Pradesh, 1 district of Gujarat and 1 district of West Bengal. Aravind comprises several hospitals, dozens of eye clinics, a research foundation, a manufacturing centre for ophthalmic products, an eye bank and a resource training centre to spread its model. Its innovations too numerous to elaborate have been focussed to bring affordable health care facilities to the rural population of the country.
Distinct features of Aarvind Eye Care that makes it a social enterprise.Unique Pricing Strategy:Aravind has focused on reaching out to “non-customers”, which are often ignored by marketers. Through decades of innovation and expansion, the core value of the business model remains universal access. Around 60% of the eye surgeries are conducted either free of cost or at highly subsidised rate (World Economic Forum, 2009). The remaining 40% of the customers pay the normal price. No compromise is done in either of the price range.   Sources of Fund and Profit UtlisationThe highly efficient operations coupled with an innovative pricing structure allow the hospitals to maintain a 50% profit margin. Profits are then reinvested into Aravind for growth and expansion of the hospital chain, as well as funding other initiatives like the research foundation. About 90% of the annual budget is self-generated and 10% comes from charity. Innovations for a Common GoodIn 1992, David Green, who the founded the non-profit organization Project Impact, established Aurolab in India, a major research partner of Aravind Eye Care System. Initially Aravind eye care had to import intraocular lenses at $100 each from United States. However, after the establishment of the research centre it was now able to produce these lenses at $ 4 each. Aurolab also provides affordable intraocular lenses, suture, pharmaceuticals, and eyeglasses that facilitate over 300,000 eye surgeries performed annually at Aravind Eye Hospitals, making Aravind Eye Care System the largest eye care program in the world.