Expansion and Growth in Affordable Housing Solid, Quick, Sustainable & Quality Mass Solution Sam Circle Venture Amber Malhotra, Managing Principal APUHF 2012- New Delhi,
Mar 27, 2015
Expansion and Growth in Affordable HousingSolid, Quick, Sustainable & Quality Mass Solution
Sam Circle Venture Amber Malhotra, Managing Principal
APUHF 2012- New Delhi,
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.
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
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
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The SolutionConstruct or Manufacture
The ProcessCustomized or Standardized
What we do not Know
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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
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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
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Integrated supply chain
Automobile Industry
Image: BMW
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Embedded System
FOUNDATION FLOOR WALLS ROOF INFILL
There are 4000 components in a typical western urban home.
On site Off site
Image: Blu Homes
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Planning & Construction
Integrated supply chain
HOME UNIT
Component
Component
Component
Component
Component
Component
Fabricators
Fabricators
Fabricators
Fabricators
Assemblers
Assemblers
Tier 1Tier 2Tier 3
PRODUCT
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Hybrid Embedded Factory Manufactured
Yard- Basic Fully Automatic
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
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
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
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.
Sam Circle VentureThink Ideate Innovate Implement Nurture
Hybrid Model- 40,000 SFT serviced units in 6 months
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
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