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
SAC Homes - Sustainable, Affordable, Customisable Homes - Prabhu
SACAffordable, Customisable HOMES Sustainable, W5 Rafael Fernandes Biswanath Ghose Amrita Kulkarni Ajay Pahwa Khurram QayamPrabhu Subramanian
Introduction MILLIONS Homeless people in India $2.2 billion The Indian government invests annually 2 million Free houses built by the government annuallyone-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
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?
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.
Meet Mr.Kumar:What he has.. What he dreams of..
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!
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.
From the reports:(Ministry of Rural Development held a workshop on 19 December 2011)
From the reports:(Rural housing evaluation report highlights sanitation problem)
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!
Family desiresHusband 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
Family incentivesHusband 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
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.
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 technologiesLOOWATT- Better alternative to latrines- Sanitary, does not smell- Production of energyEnergy saving technologies- Solar panels and battery (e.quinox type)- A litre of light design incorporated in the housesRocket 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.- Licensing the designs to partners in the developed countries.
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 teamRafael Fernandes yellow thinking styleHead of MaterialsLicensed Civil Engineer, PhD Aeronautics“Trying to leave the world tomorrow a bit better than yesterday.”Biswanath Ghose red & green thinking styleHead of LogisticsConsultant“Help the homeless find a place they find suitable.”Amrita Kulkarni yellow thinking styleHead of DesignArchitect, product designer“The irony of free homes and homelessness co-existing is simplyshocking.”
The teamAjay Pahwa yellow thinking styleFinance DirectorCertified Accountant“We are positioned to commoditise the housing market. It is revolution waiting to happen.”Khurram Qayam yellow thinking styleHead of TechnologyTelecom Consultant“Helping to raise Human capital through smart business.”Prabhu Subramanian red thinking styleMarketing & overall managementConsultant“Homelessness is really a marketing problem; can be solved one SAC at a time!”
We are missing:XGovernment lobbyistHead of an NGO“We believe SAC Homes has the potential to make long-lastingimpact on this social problem!”YMentorEntrepreneur & Mentor“I thought innovation and social-enterprise are oxymoron until Isaw SAC Homes!”ZInvestorVC, Pre-seed stage“Really looking forward for the prototype; My daughter wants atoy house for Christmas.”
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.
AppendixFACTS 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.aspCOMPETITORS: - Worldhaus - http://worldhaus.com/ - MIT 1K house - http://web.mit.edu/1khouse/contents.htm - $300 house - http://www.300house.com/POTENTIAL RAW-MATERIAL SUPPLIERS - Everest - http://everestfibre.com/ - Concrete Canvas - http://www.concretecanvas.co.uk/ - Shivsakti - http://shivshaktifibres.tradeindia.com/
Idea evaluation Homelessness Solutions Concepts/Ideas Government built Low cost housing Improve Huts SAC Homes houses QuestionsWill this improve sanitation? x ? ? √Scope for electricity and water x √ ? √Public Awareness √ √ ? ?Proximity to work √ x √ √Can be self built? √ x x √Multi-storey support? x √ √ xFit for requirement/use √ x x √New home based enterprises? x x x √Designed as a System? x x x √Will this have a big impact? x x √ √
Idea evaluation SAC Homes Concepts/Ideas Village Redevelopment (e.g. Haiti Earthquake) Slum Redevelopment Disaster Area Rehab (in India) (in India) QuestionsWill this be accepted by public? x √ √Will this be accepted by local government ? ? √Are Government Grants available? x x √Are other forms of finance available? x √ √Is it complex to adapt in different areas of similar x x √topology?How complex is to build the sorrounding ecosystem? x x √Can it be delivered within target cost (US$ 1400 per √ √ √home)?How complex is the design? √ √ √
Market researchACADEMIC 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 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
PEST AnalysisPOLITICAL - ‘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.