SAC Homes Workshop 1 - Presentation

8/3/2019 SAC Homes Workshop 1 - Presentation

1/38

SAC HOMESSustainable, Aordable, Customisable

W5Raael FernandesBiswanath GhoseAmrita Kulkarni

Ajay Pahwa

Khurram QayamPrabhu Subramanian


2/38

Introduction

MILLIONS

$2.2 billion

2 million

one-size-ts-all

growing...

Homeless people in India

The Indian government invests annually

Free houses built by the government annually

Design approach o the government to these houses, along withpoor sanitation and slow building process

Number o homeless people in the country, inspite o the homes

coming ree


3/38

What is the solution?

- Increase aid

- Build large shelters

- Advertising about shelters

- Transportation to/rom shelters

- Improve huts

- Make the ree houses liveable

- Build a better house?


4/38

What is a SAC Home?

- A house that is easy to assemble, customise and maintain.It can pay or itsel!

- Fully loaded provision or sanitation, water, electricity.

- Targeting the Low-cost sel-built housing market in India that isexpected to be worth $16.8 billion by 2015.

- Novel approach creates win-win situation or customers,

government and the rm.

- Concept is diversiable with potential or multiple revenue streams.


5/38

Market positioning

Low-cost housing Low-cost sel-built housing Aordable housing - urban

SAC HOMESSustainable, Aordable, Customisable


6/38

Meet Mr.Kumar:

What he has.. What he dreams o..


7/38

Kumars options:

Both options cost roughly the same to the government!

Register or a ree house

- Typically 5 yrs wait time- Cost to government : $1,400

Get a government grant

- Build his own house- Much quicker and easier

- A grant is typically $1,450including a loan component:$450 @ 4% p.a.


8/38

Kumars pain points:

Government ree house

- Location. May end up walkingseveral miles to nd work.

- Cannot use the house as a shop.- Expensive to maintain.

Sel-built house

- Un-subsidised raw materials.- Lack o innovations in low-cost

housing. Limited options.- Have to sacrice on sanitation

to t the budget.- Dicult to get electricity, water

without proper planning.

Reduces eectiveness in both schemes.


9/38

From the reports:

(Ministry o Rural Development held a workshop on 19 December 2011)


10/38

(Rural housing evaluation report highlights sanitation problem)

From the reports:


11/38

Kumars new house


12/38

Interior view


13/38

Opportunity

- Demand - pull.

- We noticed several aults in the current low-cost housing optionslike MIT 1K house:

- Just one rectangular design. Why should every house be a rectangle?

- Complex and oten requires people to hire a mason.- Not really customisable. Not built as a system.

- Low-cost housing seems to target an average poor person,who doesnt exist!

- So we decided to start rom scratch!


14/38

Family desires

Husband Wie Grandparents Children Pets/Cattle

- Cleanliness

- Privacy- Water access- Lively- Storage- Urgency- Sanitation

- Ventilation

- Community

connect- Help access- Step-ree- Ground foor

- Multiple

spaces- Sanitation- Playing area- High volumes

- Space away

rom houseor noise- Close to

maintain

- Cheap

- Quickconstruction- Easy

work-access- Expandible/

contractible

- Urgency- Hierarchy


15/38

Family incentives

Husband Wie Grandparents Children Pets/Cattle

- Minimal

change- Greenery- Local

arming- Water access- Sanitation

- Schools

- Interconnected

rooms- Communityspace

- High volumes

- Excitingspaces

- Storage

areas- Localeeding

- Minimal

change- Quickchange

- Rainharvesting

- New home

enterprise- Solar gain


16/38

Innovation

- Product innovation Economic incentives through innovative module design.

- Process innovation Using technology to simpliy the process involvedin getting a government grant to buy a SAC.

- Service innovation Providing a complete housing service by usingother complementary systems.

- This creates a win-win situation or all: Customers Speedy process.

Government Cost savings, reduces corruption. Firm Market share, local knowledge.


17/38

Proposed model


18/38

Idea directions


19/38

Idea directions


20/38

Idea directions


21/38

SAC Modules

- Modules are the building blocks o a SAC Home.

- Combination o modules when assembled together would orm a house.Customise as per your needs.

- Possible to replace/upgrade individual modules as per changing needs!

- Use case - Using the house as a shop with a collapsible ront portion.

- Remove modules to increase storage space.


22/38

Complementary technologies

LOOWATT- Better alternative to latrines- Sanitary, does not smell- Production o energy

Energy saving technologies- Solar panels and battery (e.quinox type)- A litre o light design incorporated in the houses

Rocket stoves- Sae and ecient way o heating and cooking- Smokeless- Burn almost anything


23/38

Revenue streams

- Module sales.

- Consultation service or the government on Rural development programmes:

- Government is mandated to use independent consultants ormonitoring and evaluating their projects.

- This was worth $9 million last year.

- Would help in gaining credibility.

- Licensing the designs to partners in the developed countries.


24/38

Growth prospects

- Partnering with micro-credit organisations and banks to und SAC homesor people who do not qualiy or the government grant.

No dependency only on government grants.

- Potential diversication into other markets like disaster recovery (Haiti),Trade events requiring customisable stalls.


25/38

The team

Raael Fernandes yellowthinking style

Head o MaterialsLicensed Civil Engineer, PhD AeronauticsTrying to leave the world tomorrow a bit better than yesterday.

Biswanath Ghose red & green thinking styleHead o LogisticsConsultantHelp the homeless fnd a place they fnd suitable.

Amrita Kulkarni yellowthinking styleHead o DesignArchitect, product designerThe irony o ree homes and homelessness co-existing is simply

shocking.


26/38

Ajay Pahwa yellowthinking style

Finance DirectorCertied AccountantWe are positioned to commoditise the housing market.

It is revolution waiting to happen.

Khurram Qayam yellowthinking styleHead o TechnologyTelecom ConsultantHelping to raise Human capital through smart business.

Prabhu Subramanian redthinking styleMarketing & overall managementConsultantHomelessness is really a marketing problem;

can be solved one SAC at a time!

The team


27/38

We are missing:

X

Government lobbyistHead o an NGOWe believe SAC Homes has the potential to make long-lasting

impact on this social problem!

YMentorEntrepreneur & MentorI thought innovation and social-enterprise are oxymoron until I

saw SAC Homes!

ZInvestorVC, Pre-seed stageReally looking orward or the prototype; My daughter wants a

toy house or Christmas.

C l


28/38

Conclusion

- Based on Porters ve orces, the industry is attractive.

- PEST analysis conrms the market potential.

- SWOT analysis highlights weakness in raw materials & government contacts.

Overall, SAC Homes is a easible and attractive proposition.


29/38

Thank you.

A di


30/38

Appendix

FACTS AND FIGURES:- Ministry o Rural development website - http://rural.nic.in/- Annual Reports - http://rural.nic.in/sites/annual-report.asp- Explanation o schemes under Rural housing -http://rural.nic.in/sites/programmes-schemes-rural-housing.asp

COMPETITORS:- Worldhaus - http://worldhaus.com/- MIT 1K house - http://web.mit.edu/1khouse/contents.htm- $300 house - http://www.300house.com/

POTENTIAL RAW-MATERIAL SUPPLIERS

- Everest - http://everestfbre.com/- Concrete Canvas - http://www.concretecanvas.co.uk/- Shivsakti - http://shivshaktifbres.tradeindia.com/

Id l ti


31/38

Idea evaluation

ImproveHuts

Governmentbuilt

houses

Low

costhousing

SACHomes

Will this improve sanitation? x ? ?

Scope for electricity and water x ?

Public Awareness ? ?

Proximity to work x

Can be self bui lt? x x

Multi-storey support? x xFit for requirement/use x x

New home based enterprises? x x x

Designed as a System? x x x

Will this have a big impact? x x

Homelessness Solutions

Questions

Concepts/Ideas

Id l ti


32/38

Idea evaluation

Slu

mR

edevelopment

(inIndia)

DisasterAreaRehab

(e.

g.

HaitiEarthquake)

Vill

ageRedevelopment

(inIndia)

Will this be accepted by public? x

Will this be accepted by local government ? ?

Are Government Grants available? x x

Are other forms of finance available? x

Is it complex to adapt in different areas of similar

topology?x x

How complex is to build the sorrounding ecosystem? x x

Can it be delivered within target cost (US$ 1400 per

home)?

How complex is the design?

Concepts/Ideas

SAC Homes

Questions

M k t h


33/38

Market research

ACADEMIC RESEARCH:

Collecting data rom ministry o rural development websitesand other public sources.

ENTREPRENEURIAL RESEARCH:Researching about homelessness in India rom the internet and

rom websites like youtube:

- Interpreting the video reports rom dierent news organisations like

NDTV, CNN in identiying the problem and possible solutions.

- Eg - http://www.youtube.com/watch?v=qmJQjgInvzk

Report explaining why occupancy in Government provided sheltersare less. (Far away rom work etc).

- http://www.youtube.com/watch?v=S2I6s34mpk0

A report on the government grant scheme (IAY).

G t ti


34/38

Grant options:

Free house

- Long waiting list- Government allots a house by

orming a colony.- Location could be anywhere

within the state.- Cost to Government : $1400

Government grant

- Quicker and easier.- Sel-build

- Choice o location- Cost to Government : $1450

includes a loan or $450

P t Fi


35/38

Porters FiveForces Framework

PEST A l i


36/38

PEST Analysis

POLITICAL- Shelter or everyone by 2017 Goal set by the government.

- Governments plan to und 12 million houses by 2015.

ECONOMIC- Pressure rom UN and aid providing countries like UK to solve

homelessness and poverty.

- Funding rom organisations like Bill and Melinda Gates Foundation.

SOCIAL- Insistence rom micro-credit organisations and banks to have a

permanent house or credit.- Improved job and business aspects.

- Social acceptance or home owners.

TECHNOLOGICAL- Technological innovations like concrete canvas, bre panels and

sanitation systems like Loowatt.

SWOT A l i


37/38

SWOT Analysis

Value curve


38/38

Value curve

Documents

SAC Homes Workshop 1 - Presentation