SAC Homes is a social enterprise focused on low-cost housing. They propose affordable, customizable homes called SAC Homes that are more suitable than existing government housing options. SAC Homes start at $1,750-$2,250 and can be expanded with add-ons like shops. They plan to launch in 2014 and deliver 500 homes in year 1, scaling up to 14,500 total homes by 2017 to address the large need for affordable housing.
3. The social problem
Who we are
Why we collaborate
What we propose
How it will work
Future agenda
4. 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 housing
The social problem
Who we are
Why we collaborate
What we propose
How it will work
Future agenda
5. 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 house
The social problem
Who we are
Why we collaborate
What we propose
How it will work
Future agenda
6. Kumar’s options today:
Register for a free house Get a government grant
(worth $1,500) ($1,450)
The social problem
Who we are
Why we collaborate
What we propose
How it will work
Future agenda
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
8. 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
9. 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
10. 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 billion
The social problem
Who we are
Why we collaborate
What we propose
How it will work
Future agenda 1 Source: Monitor Group
11. 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 are
Why we collaborate Are they really our competition?
What we propose
How it will work
Future agenda
12. 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 house
The social problem
Who we are Adaptable to changing needs through add-on modules
Why we collaborate
What we propose
How it will work
Future agenda
13. Base design & technology
License from PODPASSIV:
- Quicker time to market
- Low prototyping expense
The social problem
Who we are
Why we collaborate
What we propose
How it will work
Future agenda
14. Indian adaptation
The 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
15. 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 $450
The social problem
Who we are
Why we collaborate
What we propose
How it will work
Future agenda
16. More add-ons
Rocket Stove ($40) External toilet ($250) SAC Water ($150)
Supplier : Envirofit Supplier : Multiple Supplier: Multiple
SAC Power ($75)
Supplier: Barefoot power, China
The social problem
Who we are
Why we collaborate
What we propose
How it will work
Future agenda
17. End to end process
SAC HOMES
Sustainable, Affordable, Customisable Homes
Supplier 1 Supplier 2 Supplier 3 Supplier 4
18. End to end process
Finances
Govt.
Customers Micro credit
SAC HOMES
Sustainable, Affordable, Customisable Homes
Supplier 1 Supplier 1 Supplier 3 Supplier 4
19. End to end process
Finances
Govt.
Customers Micro credit
Purchase
SAC HOMES
Sustainable, Affordable, Customisable Homes
Supplier 1 Supplier 1 Supplier 3 Supplier 4
20. End to end process
Finances
Govt.
Customers Micro credit
Purchase Module
delivery
SAC HOMES
Sustainable, Affordable, Customisable Homes
Supplier 1 Supplier 1 Supplier 3 Supplier 4
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 1 Supplier 3 Supplier 4
22. 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
23. 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 are
Why we collaborate
What we propose
How it will work
Future agenda
24. Marketing plan
- Joint marketing campaigns with Habitat for Humanity (NGO)
- ‘SAC in a day’ - training sessions
farmer’s market village fairs
Problem statement
Who we are
Why we collaborate
What we propose
How it will work
Future agenda
25. Roadmap & milestones
2012 2013 2014 2015 2016 2017
PHASE 0 PHASE 1 PHASE 2
Pre-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 Homes
BOOTSTRAP WITH EQUITY CAPITAL SOCIAL LOAN
$30,OOO $150,000 $150,000
27. Team
Ajay Pahwa
Finance Director
Certified Accountant
“We are positioned to commoditise the housing market. It is a revolution
waiting to happen.”
Amrita Kulkarni
Head of Design
Architect, product designer
“The irony of free homes and homelessness co-existing is simply shocking.”
Biswanath Ghose
Head of Logistics
Consultant
“Help the homeless find a place they find suitable.”
Khurram Qayam
Head of Technology
Consultant
“Helping to raise Human capital through smart business.”
Prabhu Subramanian
Marketing & overall management
Consultant
“Homelessness is really a marketing problem;
can be solved one SAC at a time!”
28. Available Jan 14, 2014
Follow us on twitter @sachomesuk,
web: www.sachomes.co.uk
The social problem
Who we are
Why we collaborate
What we propose
How it will work
Future agenda