SAC HOMESSustainable, Affordable, Customisable Homes

W5Ajay Pahwa

Amrita KulkarniBiswanath GhoseKhurram Qayam

Prabhu Subramanian

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

Who we are:

- A social enterprise focussed on Low-cost housing; For-profit and bootstrapped

- Our vision is a world where everyone benefits from

innovations in housing

Customer profile

Mr. Kumar- Lives in a south Indian village with wife and son- Uses his mud hut as a shop - self built and self maintained- Dreams of living in a proper house

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

Kumar’s options today:

Register for a free house(worth $1,500)

Get a government grant($1,450)

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

Kumar’s options today:

Register for a free house(worth $1,500)

- Waiting time of ~5 years - Location anywhere in the state - Cannot use house as a shop

Pain points

Get a government grant($1,450)

- Non-subsidised raw materials - Sacrifice sanitation - Difficult to get electricity & water without proper planning

Register for a free house(worth $1,500)

- Waiting time of ~5 years - Location anywhere in the state - Cannot use house as a shop

Pain points

Outcome

Get a government grant($1,450)

- Non-subsidised raw materials - Sacrifice sanitation - Difficult to get electricity & water without proper planning

Kumar’s options today:

Kumar’s options today:

Register for a free house(worth $1,500)

- Waiting time of ~5 years - Location anywhere in the state - Cannot use house as a shop

Pain points

Outcome

KUMAR CHOOSES TO STAY IN HIS HUT!

Get a government grant($1,450)

- Non-subsidised raw materials - Sacrifice sanitation - Difficult to get electricity & water without proper planning

Opportunity

Top Down: Bottom up:

100million houses in total = $220billion1

1 Source: Monitor Group

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

100 Million houses/$220

billion

Huts House shop

Village 500 35

Coimbatore District (250 villages)

125,000 8,750

India (600 districts) 75 Million

5.25 Million

Potential (30districts)

3.7 Million

250,000

Value 7.4 billion

Existing players

- Not self built; difficult to maintain by self. Houses sold as product, not system- TATA Housing primarily for urban environments- 1K house is currently an aspirational project- Designs seem to target an average poor person!

Are they really our competition?

Problem statementWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

Our approach

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

Why did they all choose:

A hut over a free house worth $1,500?

What they really need:A house that is affordable and customisable like a hut and durable like a house

Adaptable to changing needs through add-on modules

Base design & technology

License from PODPASSIV:- Quicker time to market- Low prototyping expense

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

Indian adaptation

1 Bedroom (220sqft) 2 Bedroom (270sqft)($1,750) ($2,250)

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

Main add-ons: SAC Shop

Extension to the SAC Home: - Can be added to both 1 Bedroom and 2 Bedroom SAC Home - Price starts from $450

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

More add-ons

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

External toilet ($250)Supplier : Multiple

SAC Power ($75)Supplier: Barefoot power, China

Rocket Stove ($40)Supplier : Envirofit

SAC Water ($150)Supplier: Multiple

End to end process

Supplier 1 Supplier 2 Supplier 3 Supplier 4

SAC HOMESSustainable, Affordable, Customisable Homes

End to end process

Govt.

Micro creditCustomers

Supplier 1 Supplier 1 Supplier 3 Supplier 4

Finances

SAC HOMESSustainable, Affordable, Customisable Homes

End to end process

Govt.

Micro creditCustomers

Supplier 1 Supplier 1 Supplier 3 Supplier 4

Finances

SAC HOMESSustainable, Affordable, Customisable Homes

Purchase

End to end process

Govt.

Micro creditCustomers

Module delivery

Supplier 1 Supplier 1 Supplier 3 Supplier 4

Purchase

Finances

SAC HOMESSustainable, Affordable, Customisable Homes

End to end process

Govt.

Micro creditCustomers

Module delivery

Supplier 1 Supplier 1 Supplier 3 Supplier 4

Purchase

Self build Finances

SAC HOMESSustainable, Affordable, Customisable Homes

SAC Home

End to end process

Govt.

Micro creditCustomers

Module delivery

Supplier 1 Supplier 2 Supplier 3 Supplier 4

Purchase

Self build Finances

SAC HOMESSustainable, Affordable, Customisable Homes

SAC Home

Pricing strategy

- WorldHaus base house begins at $1,500

- Survey and expert interviews: Minimum access to around $1,450 (Govt. grant or savings) Willingness to pay an extra $500 on average

- Cost-plus pricing for modules - margin of at least 30%

Problem statementWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

SAC Home Model 1 Bedroom 2 BedroomSale price (Excl. Tax) $1,750 $2,250Costs $1,620 $1,840Contribution $130 $410Contribution % 7% 18%

Marketing plan

- Joint marketing campaigns with Habitat for Humanity (NGO)

- ‘SAC in a day’ - training sessions

farmer’s market village fairs

Problem statementWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

Roadmap & milestones

2012 2013 2014 2015 2016 2017

PHASE 0 PHASE 1 PHASE 2

Pre-Launch Launch Expansion

2012 2013 2014 2015 2016 2017

PHASE 0 PHASE 1 PHASE 2

Pre-Launch Launch Expansion

- Finalise materials and suppliers- Prototyping

- Field test- Finalise design

BOOTSTRAP WITH $30,OOO

- ‘SAC in a day’ : training- Launch 14 Jan 2014 Makar Sankranti Festival Day

- Deliver 500 SAC Homes

EQUITY CAPITAL $150,000

- Set up assembly unit- Provide consultation services - Develop relationship with government

- Deliver 14,500 SAC Homes

SOCIAL LOAN $150,000

Financials - Profit & Loss

Year 1 Year2 Year3 Year4 TotalUnit Sales ( 1 BR & 2 BR) 500 1,750 4,750 7,500 14,500Revenue ($ 000)

875 3,356 9,113 15,034 28,378

Variable Cost($ 000) 810 2,976 8,086 13,216 25,087

Contribution($ 000) 65 381 1,017 1,803 3,266Fixed Cost($ 000)

147 347 435 541 1,469

Net Profit before tax ($ 000)

-82 34 582 1,263 1,797

TeamAjay Pahwa Finance DirectorCertified Accountant“We are positioned to commoditise the housing market. It is a revolution waiting to happen.”

Amrita Kulkarni Head of DesignArchitect, product designer“The irony of free homes and homelessness co-existing is simply shocking.”

Biswanath Ghose Head of LogisticsConsultant“Help the homeless find a place they find suitable.”

Khurram Qayam Head of TechnologyConsultant“Helping to raise Human capital through smart business.”

Prabhu Subramanian Marketing & overall managementConsultant“Homelessness is really a marketing problem; can be solved one SAC at a time!”

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

Available Jan 14, 2014

Follow us on twitter @sachomesuk, web: www.sachomes.co.uk

The social problemWho we are

Why we collaborateWhat we proposeHow it will workFuture agenda

Appendix