SAC Homes - Sustainable, Affordable, Customisable Homes - Prabhu

329 views

Published on

SAC Homes is an innovative modular house that is designed by a team of Imperial and RCA students led by Prabhu Subramanian. Follow us on @sachomesuk

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
329
On SlideShare
0
From Embeds
0
Number of Embeds
24
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

SAC Homes - Sustainable, Affordable, Customisable Homes - Prabhu

  1. 1. SAC HOMESHomes Sustainable, Affordable, Customisable W5 Ajay Pahwa Amrita Kulkarni Biswanath Ghose Khurram QayamPrabhu Subramanian
  2. 2. The social problem Who we areWhy we collaborate What we propose How it will work Future agenda
  3. 3. 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 housingThe social problem Who we areWhy we collaborate What we propose How it will work Future agenda
  4. 4. 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 houseThe social problem Who we areWhy we collaborate What we propose How it will work Future agenda
  5. 5. Kumar’s options today: Register for a free house Get a government grant (worth $1,500) ($1,450) The social problem Who we areWhy we collaborate What we propose How it will work Future agenda
  6. 6. Kumar’s options today: Register for a free house Get a government grant (worth $1,500) ($1,450)Pain points - Waiting time of ~5 years - Non-subsidised raw materials - Location anywhere in the state - Sacrifice sanitation - Cannot use house as a shop - Difficult to get electricity & water without proper planning
  7. 7. Kumar’s options today: Register for a free house Get a government grant (worth $1,500) ($1,450)Pain points - Waiting time of ~5 years - Non-subsidised raw materials - Location anywhere in the state - Sacrifice sanitation - Cannot use house as a shop - Difficult to get electricity & water without proper planning Outcome
  8. 8. Kumar’s options today: Register for a free house Get a government grant (worth $1,500) ($1,450) KUMAR CHOOSES TO STAY IN HIS HUT!Pain points - Waiting time of ~5 years - Non-subsidised raw materials - Location anywhere in the state - Sacrifice sanitation - Cannot use house as a shop - Difficult to get electricity & water without proper planning Outcome
  9. 9. Opportunity Top Down: Bottom up: 100million houses in total = $220billion1 Huts House shop Village 500 35 Coimbatore District 125,000 8,750 100 Million (250 villages) houses/$220 India (600 districts) 75 5.25 Million billion Million Potential (30 3.7 250,000 districts) Million Value 7.4 billionThe social problem Who we areWhy we collaborate What we propose How it will work Future agenda 1 Source: Monitor Group
  10. 10. 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!Problem statement Who we areWhy we collaborate Are they really our competition? What we propose How it will work Future agenda
  11. 11. Our approach 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 houseThe social problem Who we are Adaptable to changing needs through add-on modulesWhy we collaborate What we propose How it will work Future agenda
  12. 12. Base design & technology License from PODPASSIV: - Quicker time to market - Low prototyping expenseThe social problem Who we areWhy we collaborate What we propose How it will work Future agenda
  13. 13. Indian adaptationThe social problem 1 Bedroom (220sqft) 2 Bedroom (270sqft) Who we are ($1,750) ($2,250)Why we collaborate What we propose How it will work Future agenda
  14. 14. 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 $450The social problem Who we areWhy we collaborate What we propose How it will work Future agenda
  15. 15. More add-ons Rocket Stove ($40) External toilet ($250) SAC Water ($150) Supplier : Envirofit Supplier : Multiple Supplier: Multiple SAC Power ($75) Supplier: Barefoot power, ChinaThe social problem Who we areWhy we collaborate What we propose How it will work Future agenda
  16. 16. End to end process SAC HOMES Sustainable, Affordable, Customisable HomesSupplier 1 Supplier 2 Supplier 3 Supplier 4
  17. 17. End to end process Finances Govt. Customers Micro credit SAC HOMES Sustainable, Affordable, Customisable HomesSupplier 1 Supplier 1 Supplier 3 Supplier 4
  18. 18. End to end process Finances Govt. Customers Micro credit Purchase SAC HOMES Sustainable, Affordable, Customisable HomesSupplier 1 Supplier 1 Supplier 3 Supplier 4
  19. 19. End to end process Finances Govt. Customers Micro credit Purchase Module delivery SAC HOMES Sustainable, Affordable, Customisable HomesSupplier 1 Supplier 1 Supplier 3 Supplier 4
  20. 20. End to end process Self build Finances Govt.SAC Home Customers Micro credit Purchase Module delivery SAC HOMES Sustainable, Affordable, Customisable Homes Supplier 1 Supplier 1 Supplier 3 Supplier 4
  21. 21. End to end process Self build Finances Govt.SAC Home Customers Micro credit Purchase Module delivery SAC HOMES Sustainable, Affordable, Customisable Homes Supplier 1 Supplier 2 Supplier 3 Supplier 4
  22. 22. 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 SAC Home Model 1 Bedroom 2 Bedroom Sale price (Excl. Tax) $1,750 $2,250 Costs $1,620 $1,840 Contribution $130 $410 Contribution % 7% 18% - Cost-plus pricing for modules - margin of at least 30%Problem statement Who we areWhy we collaborate What we propose How it will work Future agenda
  23. 23. Marketing plan - Joint marketing campaigns with Habitat for Humanity (NGO) - ‘SAC in a day’ - training sessions farmer’s market village fairsProblem statement Who we areWhy we collaborate What we propose How it will work Future agenda
  24. 24. Roadmap & milestones2012 2013 2014 2015 2016 2017 PHASE 0 PHASE 1 PHASE 2Pre-Launch Launch Expansion- Finalise materials - ‘SAC in a day’ : - Set up assembly unit and suppliers training - Provide consultation- Prototyping - Launch 14 Jan 2014 services Makar Sankranti - Develop relationship Festival Day with government - Field test - Deliver 500 SAC Homes - Deliver 14,500- Finalise design SAC HomesBOOTSTRAP WITH EQUITY CAPITAL SOCIAL LOAN $30,OOO $150,000 $150,000
  25. 25. Financials - Profit & Loss Year 1 Year2 Year3 Year4 TotalUnit Sales ( 1 BR & 2 BR) 500 1,750 4,750 7,500 14,500Revenue 875 3,356 9,113 15,034 28,378($ 000)Variable Cost($ 000) 810 2,976 8,086 13,216 25,087Contribution($ 000) 65 381 1,017 1,803 3,266Fixed Cost 147 347 435 541 1,469($ 000)Net Profit before tax -82 34 582 1,263 1,797($ 000)
  26. 26. TeamAjay PahwaFinance DirectorCertified Accountant“We are positioned to commoditise the housing market. It is a revolutionwaiting to happen.”Amrita Kulkarni Head of DesignArchitect, product designer“The irony of free homes and homelessness co-existing is simply shocking.”Biswanath GhoseHead 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 SubramanianMarketing & overall managementConsultant“Homelessness is really a marketing problem; can be solved one SAC at a time!”
  27. 27. Available Jan 14, 2014 Follow us on twitter @sachomesuk, web: www.sachomes.co.ukThe social problem Who we areWhy we collaborate What we propose How it will work Future agenda
  28. 28. AppendixThe social problem Who we areWhy we collaborate What we propose How it will work Future agenda

×