Rafael Fernandes Biswanath Ghose Amrita Kulkarni Ajay Pahwa Khurram Qayam Prabhu Subramanian
W5
Introduction
Homeless people in India The Indian government invests annually Free houses built by the government annually Design approach of the government to these houses, along with poor sanitation and slow building process Number of homeless people in the country, inspite of the homes coming free
- A house that is easy to assemble, customise and maintain. It can pay for itself! - Fully loaded provision for sanitation, water, electricity. - Targeting the Low-cost self-built housing market in India that is expected to be worth $16.8 billion by 2015. - Novel approach creates win-win situation for customers, government and the firm. - Concept is diversifiable with potential for multiple revenue streams.
Market positioning
Low-cost housing
SAC HOMES
Sustainable, Affordable, Customisable
Meet Mr.Kumar:
What he has..
Kumars options:
Self-built house
- Un-subsidised raw materials. - Lack of innovations in low-cost housing. Limited options. - Have to sacrifice on sanitation to fit the budget. - Difficult to get electricity, water without proper planning.
Interior view
Opportunity
- Demand - pull. - We noticed several faults in the current low-cost housing options like MIT 1K house: - Just one rectangular design. Why should every house be a rectangle? - Complex and often 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!
Family desires
Husband - Cheap - Quick construction - Easy work-access - Expandible/ contractible - Urgency - Hierarchy
Wife - Cleanliness - Privacy - Water access - Lively - Storage - Urgency - Sanitation - Ventilation
Family incentives
Husband - Minimal change - Quick change - Rain harvesting - New home enterprise - Solar gain
Wife - Minimal change - Greenery - Local farming - Water access - Sanitation - Schools
Innovation
Product innovation Economic incentives through innovative module design. Process innovation Using technology to simplify the process involved in getting a government grant to buy a SAC. Service innovation Providing a complete housing service by using other complementary systems. This creates a win-win situation for all: Customers Speedy process. Government Cost savings, reduces corruption. Firm Market share, local knowledge.
Proposed model
Idea directions
Idea directions
Idea directions
SAC Modules
Modules are the building blocks of a SAC Home. Combination of modules when assembled together would form 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 front portion. - Remove modules to increase storage space.
Complementary technologies
LOOWATT
- Better alternative to latrines - Sanitary, does not smell - Production of energy
- Solar panels and battery (e.quinox type) - A litre of light design incorporated in the houses
Rocket stoves
- Safe and efficient way of heating and cooking - Smokeless - Burn almost anything
Revenue streams
Module sales. Consultation service for the government on Rural development programmes:
- Government is mandated to use independent consultants for monitoring and evaluating their projects. - This was worth $9 million last year. - Would help in gaining credibility.
Growth prospects
Partnering with micro-credit organisations and banks to fund SAC homes for people who do not qualify for the government grant. No dependency only on government grants. Potential diversification into other markets like disaster recovery (Haiti), Trade events requiring customisable stalls.
The team
Rafael Fernandes yellow thinking style Head of Materials Licensed Civil Engineer, PhD Aeronautics Trying to leave the world tomorrow a bit better than yesterday.
Biswanath Ghose red & green thinking style Head of Logistics Consultant Help the homeless find a place they find suitable.
Amrita Kulkarni yellow thinking style Head of Design Architect, product designer The irony of free homes and homelessness co-existing is simply shocking.
The team
Ajay Pahwa yellow thinking style Finance Director Certified Accountant We are positioned to commoditise the housing market. It is revolution waiting to happen. Khurram Qayam yellow thinking style Head of Technology Telecom Consultant Helping to raise Human capital through smart business. Prabhu Subramanian Marketing & overall management Consultant Homelessness is really a marketing problem; can be solved one SAC at a time!
We are missing:
X Government lobbyist Head of an NGO We believe SAC Homes has the potential to make long-lasting impact on this social problem! Y Mentor Entrepreneur & Mentor I thought innovation and social-enterprise are oxymoron until I saw SAC Homes! Z Investor VC, Pre-seed stage Really looking forward for the prototype; My daughter wants a toy house for Christmas.
Conclusion
Based on Porters five forces, the industry is attractive. PEST analysis confirms the market potential. SWOT analysis highlights weakness in raw materials & government contacts.
Thank you.
Appendix
FACTS AND FIGURES: - Ministry of Rural development website - http://rural.nic.in/ - Annual Reports - http://rural.nic.in/sites/annual-report.asp - Explanation of 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 - $300 house - http://www.300house.com/ POTENTIAL RAW-MATERIAL SUPPLIERS - Everest - http://everestfibre.com/ - Concrete Canvas - http://www.concretecanvas.co.uk/ - Shivsakti - http://shivshaktifibres.tradeindia.com/
Idea evaluation
Homelessness Solutions
Concepts/Ideas
Improve Huts
Questions
Will this improve sanitation? Scope for electricity and water Public Awareness Proximity to work Can be self built? Multi-storey support? Fit for requirement/use New home based enterprises? Designed as a System? Will this have a big impact?
x x x x x x
? x x x x x x
SAC Homes
? x
Idea evaluation
SAC Homes
Concepts/Ideas
Questions
Will this be accepted by public? Will this be accepted by local government Are Government Grants available? Are other forms of finance available? Is it complex to adapt in different areas of similar topology? How complex is to build the sorrounding ecosystem? Can it be delivered within target cost (US$ 1400 per home)? How complex is the design?
x ? x x x x
? x x x
Market research
ACADEMIC RESEARCH: Collecting data from ministry of rural development websites and other public sources. ENTREPRENEURIAL RESEARCH: Researching about homelessness in India from the internet and from websites like youtube:
- Interpreting the video reports from different news organisations like NDTV, CNN in identifying the problem and possible solutions. - Eg - http://www.youtube.com/watch?v=qmJQjgInvzk Report explaining why occupancy in Government provided shelters are less. (Far away from work etc). - http://www.youtube.com/watch?v=S2I6s34mpk0 A report on the government grant scheme (IAY).
Grant options:
Free house
Long waiting list Government allots a house by forming a colony. Location could be anywhere within the state. Cost to Government : $1400 -
Government grant
Quicker and easier. Self-build Choice of location Cost to Government : $1450 includes a loan for $450
PEST Analysis
POLITICAL - Shelter for everyone by 2017 Goal set by the government. - Governments plan to fund 12 million houses by 2015. ECONOMIC - Pressure from UN and aid providing countries like UK to solve homelessness and poverty. - Funding from organisations like Bill and Melinda Gates Foundation. SOCIAL - Insistence from micro-credit organisations and banks to have a permanent house for credit. - Improved job and business aspects. - Social acceptance for home owners. TECHNOLOGICAL - Technological innovations like concrete canvas, fibre panels and sanitation systems like Loowatt.
SWOT Analysis
Value curve