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Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF 2012- New Delhi,
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Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Mar 27, 2015

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Page 1: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Expansion and Growth in Affordable HousingSolid, Quick, Sustainable & Quality Mass Solution

Sam Circle Venture Amber Malhotra, Managing Principal

APUHF 2012- New Delhi,

Page 2: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Model T produced in 1908 by Ford Motor Companywas the first car to be manufactured by ASSEMBLY LINE PRODUCTION rather than HAND CRAFTED METHOD and became the AFFORDABLE car for mass Americans.

Page 3: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Housing in India is still HAND CRAFTEDbrick by brick and layer by layer and are un-affordable to large population

Page 4: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

And we Know

Huge shortage of affordable housing26 Million+

Urbanization40% by 2030

Limited Land Inefficient land use

Real Estate Industryis emerging asset class

269 Industries supporting real estateWorking continuously on innovation in products

Housing FinanceRequires new products

Page 5: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

The SolutionConstruct or Manufacture

The ProcessCustomized or Standardized

What we do not Know

Page 6: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Development ProcessCustomized=Expensive =not affordable

Land

Approvals

Construction= On Site Labor inefficiency Material wastage

Planning

Time

Cost

Architect

Consultants

Contractor

Material Manufacture

Isolated Supply Chain

Page 7: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Customized = Expensive

Expensive = Not Affordable to Masses from 250 million to 800 million by 2030

Affordability = Standardization

Not in ControlLAND & APPROVALS

In Control PLANNING & CONSTRUCTION

All the current discussion are focused on NOT IN CONTROL

Scope for INNOVATIONS and new business models

Page 8: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Integrated supply chain

Automobile Industry

Image: BMW

Page 9: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Embedded System

FOUNDATION FLOOR WALLS ROOF INFILL

There are 4000 components in a typical western urban home.

On site Off site

Image: Blu Homes

Page 10: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Planning & Construction

Integrated supply chain

HOME UNIT

Component

Component

Component

Component

Component

Component

Fabricators

Fabricators

Fabricators

Fabricators

Assemblers

Assemblers

Tier 1Tier 2Tier 3

PRODUCT

Page 11: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Hybrid Embedded Factory Manufactured

Yard- Basic Fully Automatic

Page 12: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

What we require is not only a Model T and Ford Motor Company equivalent but INDUSTRY CATEGORY where houses can be manufactured andcustomized like Dell and Serviced like Apple in an INTERATED MANNER

Assembly line and Standardization

Standardization with customization

Product with Services

Page 13: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

ICHKt-1

KTDesign

PWManage

r

Model Evolves

Build Show House

Along with technical partners

Set up entity to

manage IP

Role:•R&D•Marketing•Supply Chain Development•Training•New Products

Supply Chain

Patented Panel

Manufacturer

To be established

Supp

liers

exi

st;

chai

n ne

eds t

o be

set

up

• Inve

stor

s re

quire

d• M

ultip

le

loca

tions

Authorised contractor

sources from above and

builds

Customer gets his house

IT Binds everything together

Supp

ort

Customer care cum

sales outletsBusiness Model

Page 14: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Government Policy

Manufactured Homes

Regulators Banks

States Government

Manufacturing Units

AssemblersSkills Training

Mass housing through assembly line production would require building an eco system

The backlog construction is estimated at $ 104 Billion at $ 4000 dwelling unit cost

As on 31 March 2011 there were 151 billion dollar companies in India

In real estate the largest company in terms of net sales is around $ 600 million as on 31 March 2011 and that include all type of asset class not just houses.

Enabling eco systems

MANUFACURED HOMES IS THEREFORE A HUGE OPPORTUNITYTO CREATE A SOCIAL AND ECONOMIC IMPACT ON INDIAN ECONOMY

Page 15: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

India Concept House ( ICH) in association with RICS is conceived with the same objectives to address the mass urban housing shortage In India and potentially as a way to make houses in future.

Page 16: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Hybrid Model- 40,000 SFT serviced units in 6 months

Page 17: Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF.

Sam Circle VentureThink Ideate Innovate Implement Nurture

Sam Circle Venture is an incubation based asset management firm. Our focus is businesses or assets which are value driven and create both socio and economic impact through our OPERATING and BUSINESS PARTNERS

Developed economies over the years through large investments in R&D led to many inventions. Sam Circle Venture is partnering with identified partners in these economies to innovate & customize the applications for implementation in emerging economy like India

Invention is Expensive Innovation is Creative

About Us