The Grameen Family of Companies Creating a World without Poverty

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The Grameen Family of Companies Creating a
World without Poverty

• Exposé
• October 28th 2008

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• Muhammad Yunus,Nobel Peace Prize Winner and
  Founder of Grameen Bank

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The Model

• The Grameen Bank, which was founded by Muhammad
  Yunus in Bangladesh brings microcredit to poor
  people who otherwise would not be able to obtain
  a loan. The business model combines profit
  orientation (but not profit maximisation) with
  social responsibility The bank is profitable,
  because it requires the money to be paid back
  with interest. And it helps its customers at the
  same time to build a living and therefore to help
  themselves. Because the borrowers are also owners
  of the Grameen Bank, they also participate in the
  banks success. Since its founding in 1983 the
  Grameen Bank has loaned over six billion
  Eurossome in portions of as little as five
  Euros. The bank has become active in over 70,000
  villages in Bangladesh. 97 of the customers are
  women.

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Social Business and the Grameen Family

• The Grameen Family of Organizations is a group of
  enterprises which have emerged from the Grameen
  Bank of the Nobel Peace Prize winner Prof.
  Muhammad Yunus.
• The Grameen Family of Organizations is active in
  very different business areasfrom
  telecommunications to energy to textiles. All
  companies in the Grameen Family which are led as
  Joint Ventures or in partnership with enterprises
  in conventional business (for example, Grameen
  Danone), are without exception obligated to
  follow the principles of Social Business
• Contribution to the solution of social duties
• Sustainable improvement of living standards
• Economically supportable, but no profit
  maximisation

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• Index of The Grameen Family of Companies at a
  glance
• Grameen Bank 1983 Grameen Solutions 1999
• Grameen Trust 1989 Grameen IT Park
  2001
• Grameen Krishi 1991 Grameen Byabosa
  2001
• Grameen Uddog 1994 Grameen Inform. Highway
  2001
• Grameen Fund 1994 Grameen Star Education
  2002
• Grameen Motsho 1994 Grameen Bitek
  2002
• Grameen Telecom 1995 Grameen HealthcareTrust
  2006
• Grameen Shamogree 1996 Grameen Healthcare Serv.
  2006
• Grameen Cybernet 1996 Grameen Danone
  2006
• Grameen Shakti 1996 Grameen Veolia
  2008
• Grameen Phone 1996
• Grameen Kalyan 1996
• Grameen Shikkha 1997
• Grameen Communicat. 1997
• Grameen Knitwear 1997
• Grameen Capital Mgmt. 1998

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• Chronological delineation of
• The Grameen Family of Companies

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The Grameen Bank since 1983
Financial services for the poor. Grameen Bank
Project was born in the village of Jobra,
Bangladesh, in 1976. In 1983 it was transformed
into a formal bank under a special law passed for
its creation. It is owned by the poor borrowers
of the bank who are mostly women. It works
exclusively for them. Borrowers of Grameen Bank
at present own 95 per cent of the total equity of
the bank. Remaining 5 per cent is owned by the
government. Grameen Bank methodology is almost
the reverse of the conventional banking
methodology. Conventional banking is based on the
principle that the more you have, the more you
can get. In other words, if you have little or
nothing, you get nothing. As a result, more than
half the population of the world is deprived of
the financial services of the conventional banks.
Conventional banking is based on collateral,
Grameen system is collateral- free.
www.grameen.com
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Grameen Trust since 1989
Training, technical assistance, and financial
support for MFIs around the world. As a result of
the success of Grameen Bank in reaching and
serving the poor with credit, many people and
organizations began to think in Grameen's way,
and wanted to learn more about Grameen and follow
Grameen's principles in their own sphere of work.
It is primarily to meet this demand that the
Grameen Trust (GT) came into being in 1989.
www.grameentrust.org
 
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Grameen Krishi (Agriculture) Foundation since
1991
Experimentation and training to improve
agricultural practices and output. Grameen Krishi
works with farmers who are very poor but not the
"poorest of the poor". The Krishi Foundation
lends and accepts repayments in cash as well as
in agricultural input and produce. Profit is
plowed back into the Foundation in sinking tube
wells, building agricultural infrastructure,
undertaking agricultural research, and other
"future building" activities.
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Grameen Uddog (Enterprise) since 1994
Export of Grameen Check hand-loom fabrics.
Grameen Uddog is a not-for-profit company.
Grameen Uddog works with more than 10,000
hand-loom weavers who are some of the poorest
people in Bangladesh. Organizes individual
village-based weavers into a large
quality-controlled business which exports more
than one million yards of hand-loomed cotton
check fabric a month.
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Grameen Fund since 1994
Social venture capital funding for
entrepreneurial start-ups. Grameen Fund was
incorporated on January 17, 1994 as a
"not-for-profit" company and started operations
on February 1, 1994. Its emphasis is on providing
finance to ventures that are risky, technology -
oriented and otherwise deprived of financing from
existing formal lending institutions.
www.grameen.com/grameen/gfund/index.html
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Grameen Motsho O Pashusampad (Fisheries
Livestock) Foundation since 1994
Fish pond and livestock breeding programs. GMPF
was created to provide rural landless poor
specially women to gain access to common resource
properties to the have-nots, replace
exploitation with community empowerment
stagnation with social and economic growth, age
old traditions with development and modernity,
desperations with hopes, non sensitivity of women
with legal rights and gender issues starvation
with food security and nutrition and poverty with
sustainable livelihood through an integrated
fish-crop-livestock and dairy development farming
system. www.gfish-livestock.com
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Grameen Telecom since 1995
Telecommunication services for the poor. Grameen
Telecom is a company dedicated to bringing the
information revolution to the rural people of
Bangladesh. Grameen Telecom is planning, over the
next 4 years, to provide GSM 900/1100 cellular
mobile phone service to 100 million rural
inhabitants in 68,000 villages of Bangladesh by
(1) financing 60,000 members of Grameen Bank to
provide village pay phone service and (2)
providing direct phones to potential subscribers.
www.grameentelecom.net.bd
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Grameen Shamogree (Products) since 1996
Domestic sales of Grameen Check hand loom
fabrics, handcrafts and products. Keeping in view
of the objectives of poverty alleviation and the
need to accelerate the pace of our nation's
development efforts, Grameen Check has been a
leader in helping the poor by creating innovative
business models. Grameen check has become well
known all around the world for pioneering a
unique kind of fabric called Grameen Check. Most
of the fabrics of Grameen Check comes directly
from the village based traditional weavers. These
fabrics are then processed into ready made
garments and offered in national and many
international markets. Although Grameen Check has
a strong market presence both locally and
globally, there exists unlimited growth
opportunities. www.grameencheck.com/Home.html
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Grameen Cybernet since 1996
Internet service provider. Grameen Cybernet Ltd.
has been Bangladesh's leader in Internet service
provision since it commenced operation in July
1996. Its Chief Executive has had an extensive
career in education and information technology in
the US and is assisted by a team of bright, young
executives. www.citechco.net/newsite/index.php
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Grameen Shakti (Energy) since 1996
Renewable energy sources for rural Bangladesh.
Grameen Shakti (GS) is a not-for-profit rural
power company whose purpose is to supply
renewable energy to unelectrified villages in
Bangladesh. GS expects not only to supply
renewable energy services, but also to create
employment and income-generation opportunities in
rural Bangladesh. www.gshakti.org
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Grameen Phone since 1996
Cell-Phone services. In the fast-paced world of
telecommunications, vibrant and dynamic Corporate
Governance practices are an essential ingredient
to success. Grameenphone believes in the
continued improvement of corporate governance.
This in turn has led the Company to commit
considerable resources and implement
internationally accepted Corporate Standards in
its day-to-day operations. www.grameenphone.com
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Grameen Kalyan (Welfare) since 1996
Health and welfare Services for members and staff
of Grameen Bank. Grameen Kalyan provides
affordable healthcare services to the rural poor
in Bangladesh. Officially launched in 1997,
Grameen Kalyan currently operates 30 health
clinics in different parts of rural Bangladesh.
www.grameenkalyan.org
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Grameen Shikkha (Education) since 1997
Scholarships and other assistance to students of
poor families. Grameen Shikkha is a company in
the family of Grameen companies. Established in
1997 its main objectives are to promote mass
education in rural areas, provide financial
support in the form of loans and grants for the
purpose of education, use IT for alleviation of
illiteracy and evelopment of education, promote
new technologies and innovate ideas and methods
for development of education etc. Grameen Shikkha
has been conducting Life Oriented Education
Program, Pre-school/Child Development Program,
Early Childhood Development Program and Arsenic
Mitigation Program in various districts of
Bangladesh. www.grameen-info.org/grameen/gshikkh
a
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Grameen Communications since 1997
Internet service provider and data processing
services. Grameen Communications, a member of
Grameen family of enterprises, is a not for
profit Information Technology company. It has
been providing complete systems solution through
developing software products and services,
internet services, hardware networking services
and IT education services since its inception in
1997 under the Companies Act, 1994.
www.grameencommunications.com
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Grameen Knitwear since 1997
Manufacture of knitted fabrics for export.
Grameen Knitwear Limited The company is a 100
export oriented composite knitwear factory,
located in the Export Processing Zone in Savar in
the vicinity of Dhaka, the capital of Bangladesh.
It has knitting, dyeing, finishing and garments
production facilities. Most of the machinery and
equipment have been sourced from Europe. The
factory is capable to produce very high quality
of different knit fabrics and garments of
children, men and women. The fabrics and garments
are fabric and yarn dyed 100 cotton, TC, CVC,
Polyester with lycra attachement etc of various
counts. The countries where the goods are
currently exported are mostly Europe. The goods
are exported against confirmed irrevocable letter
of credit. www.grameenknitwear.com
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Grameen Capital Management since 1998
Investment management.
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Grameen Solutions since 1999
Development of IT solutions for businesses.
Grameen Solutions, a flagship technology company
within Grameen family of organizations. Founded
by Dr. Muhammad Yunus, recipient of 2006 Nobel
Peace Prize, Grameen Solutions offers business
services, management consulting, software
development, business process and service
outsourcing. Grameen Solutions offers unparallel
total value through creative solutions that meet
the diverse and dynamic needs of our global and
local client base. With Grameen Solutions,
consider it solved! Grameen Solutions has been
predominant in serving the telecommunications
industry through the development of a diverse
range of products. In keeping with the current
global trend of diversified business, Grameen
Solutions has expanded its portfolio of product
and services to meet the needs of technology
industry, educational institutions, government
sector, banking and finance, health-care and
manufacturing firms. Thus, expanding
possibilities, increasing technology inclusion,
forging successful partnerships and encouraging
great customer feedback. www.grameensolutions.co
m
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Grameen IT Park since 2001
Development of high-tech office facilities in
Dhaka.
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Grameen Byabosa Bikash (Business Promotion)
since 2001
Provision of small business loan guarantees.
Grameen Byabosa Bikash (GBB) is one of the sister
organizations in the Grameen family of
enterprises. The English meaning of this name is
Grameen Business Promotion and Services. GBB is
a social business and not-for-profit organization
registered under the Companies Act 1994 of
Peoples Republic of Bangladesh Government. It
started operation in 2001 with its registered
office located at the Grameen Bank Complex at
Mirpur area of Dhaka city. GBB has a board
consisting of 8 members. The Board is headed by
novel laureate Professor Muhammad Yunus. The
other Board members are also renowned in their
respective field. The Board sits at least every
four months to assess the progress of the
organization. www.grameenbb.org/aboutus.html
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Grameen Information Highway since 2001
Data connectivity and Internet access provider.

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Grameen Star Education since 2002
Information technology training.
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Grameen Bitek since 2002
Manufacture of electronic products.
GRAMEEN-BITEK LTD is a manufacturing industry,
primarily of electronic nature, arising out of a
joint venture between GRAMEEN FUND -a sister
concern of internationally reputed GRAMEEN BANK,
and sponsors of erstwhile BITEK (Bangladesh
Innovative Technology Group). This new company
combines the managerial and economic power of the
Grameen establishment with the technological and
manufacturing expertise of the entrepreneurs of
erstwhile Bitek. In 1989, the latter succeeded in
introducing a new product VOLT-GUARD into the
market through appropriate vision, quality
maintenance, sustained perseverance and
commitment. www.grameenbitek.com
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Grameen Healthcare Trust since 2006
Funding for Grameen Health Care Services.
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Grameen Healthcare Services since 2006
Health care services for the poor.
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Grameen Danone since 2006
Affordable, nutritious food for the poor. The
Grameen Group and Groupe Danone entered into a
joint venture agreement effective since March
2006, to form a company called Grameen Danone
Foods - a social business enterprise in
Bangladesh. A unique initiative joining Danone,
the world's leading company for healthy food
products and Grameen Group, created by the
founder of Grameen Bank, Professor Muhammad
Yunus, Grameen Danone Foods will bring daily
healthy nutrition to low income nutritionally
deprived populations in Bangladesh and alleviate
poverty through the implementation of a unique
community based business model. Grameen Danone
will be highly committed to protect the
environment of its communities developing solar
energy and bio gas energies. It will also develop
innovative and environmentally friendly packaging
for its products. The initial focus of Grameen
Danone will be to launch an easily affordable
dairy product to fulfill the nutritional needs of
children in Bangladesh and contribute to their
strong growth by bringing them the benefits of
milk and micronutrients that they lack, including
vitamins and minerals such as Iron, Zinc, and
Calcium. www.grameen-info.org/dialogue/dialogue6
3/regularfl2.html
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Grameen-Veolia since 2008
Affordable, potable water for the poor. Grameen
Bank and Veolia Water agreed to set up a new
company called Grameen-Veolia Water Ltd to supply
drinking water to the poorest people of
Bangladesh. The company will be 50 owned by
Veolia Water AMI (Africa, Middle East, India) and
50 by Grameen Healthcare (a company doing social
business in the areas of health and hygiene) and
its mission will be to operate several water
treatment and production plants in the poorest
villages in Bangladesh. Bangladesh has abundant
groundwater resources that are not too deep and
therefore provide relatively easy access to
water. Unfortunately, for geological reasons,
almost all of the groundwater has been found to
be contaminated by arsenic, at levels that make
it a health hazard. Today, more than 30 million
Bangladeshis are exposed to the sometimes fatal
consequences of chronic arsenic poisoning.
Grameen and Veolia Water have therefore decided
to join forces to provide tailor-made solutions
that supply drinking water to the poorest
communities of Bangladesh. www.veoliawater.com/p
ress/press-releases/press-2008/20080331,grameen.ht
m
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NOTES DIE GRAMEEN FAMILY The Power of
Dignity
Im Dezember 2008 erscheint der Bildband The Power
of Dignity - The Grameen Family im Kamphausen
Verlag.
Der Friedensnobelpreisträger Muhammad Yunus
führte durch seine Erfolgsstory der Kleinkredite
bereits mehrere Hundert Millionen Menschen aus
der Armut. Mit seiner neuen Initiative für
Social Business will er nun Tausende von
Unternehmen einer völlig neuen Generation
initiieren Unternehmen, die allein der Lösung
sozialer und ökologischer Probleme gewidmet sind.
"The Grameen Family - The Power of
Dignity" machen die Gründe seines Erfolgs
unmittelbar sichtbar durch Fotos des
Fotokünstlers Roger Richter und durch einen Essay
des Yunus-Biografen Peter Spiegel. Herausgeber
des Bildbands ist Hans Reitz, Creative Director
von circ corporate experience sowie des GENISIS
Instituts. Durch dieses Buch wird hautnah
nachvollziehbar, wie die Macht der Würde selbst
die vermeintlich verlorensten Menschen massenhaft
zu selbstbewussten Lebensunternehmern verwandelt.
Yunus und sein Team schafften die Versöhnung von
Ökonomie und Sozialem und damit die
bedeutendste Vorleistung für die Wende zu einer
weltweit humanen Zukunft.
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We can touch the world.We can change the
world.Lets make the differencejust try it!

• Muhammad Yunus, Cologne, October 8th 2008