SAC Homes is an innovative modular house that is designed by a team of Imperial and RCA students led by Prabhu Subramanian. This is the presentation made to the panelists during workshop 1. @sachomesuk
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SAC Homes - Sustainable, Affordable, Customisable Homes - Prabhu
1. SACAffordable, Customisable
HOMES
Sustainable,
W5
Rafael Fernandes
Biswanath Ghose
Amrita Kulkarni
Ajay Pahwa
Khurram Qayam
Prabhu Subramanian
2. Introduction
MILLIONS Homeless people in India
$2.2 billion The Indian government invests annually
2 million Free houses built by the government annually
one-size-fits-all 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
growing...
coming free
3. What is the solution?
- Increase aid
- Build large shelters
- Advertising about shelters
- Transportation to/from shelters
- Improve huts
- Make the free houses liveable
- Build a better house?
4. What is a SAC Home?
- 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.
7. Kumar’s options:
Register for a free house Get a government grant
- Typically 5 yrs wait time - Build his own house
- Cost to government : $1,400 - Much quicker and easier
- A grant is typically $1,450
including a loan component:
$450 @ 4% p.a.
Both options cost roughly the same to the government!
8. Kumar’s pain points:
Government free house Self-built house
- Location. May end up walking - Un-subsidised raw materials.
several miles to find work. - Lack of innovations in low-cost
- Cannot use the house as a shop. housing. Limited options.
- Expensive to maintain. - Have to sacrifice on sanitation
to fit the budget.
- Difficult to get electricity, water
without proper planning.
Reduces effectiveness in both schemes.
13. 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 doesn’t exist!
- So we decided to start from scratch!
14. Family desires
Husband Wife Grandparents Children Pets/Cattle
- Cheap - Cleanliness - Community - Multiple - Space away
- Quick - Privacy connect spaces from house
construction - Water access - Help access - Sanitation for noise
- Easy - Lively - Step-free - Playing area - Close to
work-access - Storage - Ground floor - High volumes maintain
- Expandible/ - Urgency
contractible - Sanitation
- Urgency - Ventilation
- Hierarchy
15. Family incentives
Husband Wife Grandparents Children Pets/Cattle
- Minimal - Minimal - Interconnected - High volumes - Storage
change change rooms - Exciting areas
- Quick - Greenery - Community spaces - Local
change - Local space feeding
- Rain farming
harvesting - Water access
- New home - Sanitation
enterprise - Schools
- Solar gain
16. 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.
21. 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.
22. Complementary technologies
LOOWATT
- Better alternative to latrines
- Sanitary, does not smell
- Production of energy
Energy saving technologies
- 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
23. 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.
- Licensing the designs to partners in the developed countries.
24. 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.
25. 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.”
26. 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 red thinking style
Marketing & overall management
Consultant
“Homelessness is really a marketing problem;
can be solved one SAC at a time!”
27. 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.”
28. Conclusion
- Based on Porter’s five forces, the industry is attractive.
- PEST analysis confirms the market potential.
- SWOT analysis highlights weakness in raw materials & government contacts.
Overall, SAC Homes is a feasible and attractive proposition.
30. 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
- $300 house - http://www.300house.com/
POTENTIAL RAW-MATERIAL SUPPLIERS
- Everest - http://everestfibre.com/
- Concrete Canvas - http://www.concretecanvas.co.uk/
- Shivsakti - http://shivshaktifibres.tradeindia.com/
31. Idea evaluation
Homelessness Solutions
Concepts/Ideas
Government built
Low cost housing
Improve Huts
SAC Homes
houses
Questions
Will this improve sanitation? x ? ? √
Scope for electricity and water x √ ? √
Public Awareness √ √ ? ?
Proximity to work √ x √ √
Can be self built? √ x x √
Multi-storey support? x √ √ x
Fit for requirement/use √ x x √
New home based enterprises? x x x √
Designed as a System? x x x √
Will this have a big impact? x x √ √
32. Idea evaluation
SAC Homes
Concepts/Ideas
Village Redevelopment
(e.g. Haiti Earthquake)
Slum Redevelopment
Disaster Area Rehab
(in India)
(in India)
Questions
Will this be accepted by public? x √ √
Will this be accepted by local government ? ? √
Are Government Grants available? x x √
Are other forms of finance available? x √ √
Is it complex to adapt in different areas of similar
x x √
topology?
How complex is to build the sorrounding ecosystem? x x √
Can it be delivered within target cost (US$ 1400 per
√ √ √
home)?
How complex is the design? √ √ √
33. 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).
34. Grant options:
Free house Government grant
- Long waiting list - Quicker and easier.
- Government allots a house by - Self-build
forming a colony. - Choice of location
- Location could be anywhere - Cost to Government : $1450
within the state. includes a loan for $450
- Cost to Government : $1400
36. PEST Analysis
POLITICAL
- ‘Shelter for everyone by 2017’ – Goal set by the government.
- Government’s 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.
