Expansion and Growth in Affordable Housing
Solid, Quick, Sustainable & Quality Mass Solution
Sam Circle Venture
Amber Malhotra, Managing Principal
APUHF 2012- New Delhi,
Model T produced in 1908 by Ford Motor Company
was the first car to be manufactured by ASSEMBLY LINE
PRODUCTION rather than HAND CRAFTED METHOD
and became the AFFORDABLE car for mass Americans.
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Housing in India is still HAND CRAFTED
brick by brick and layer by layer and
are un-affordable to large population
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Huge shortage of affordable housing
26 Million+
Urbanization
40% by 2030
Limited Land
And we Know
Inefficient land use
Real Estate Industry
is emerging asset class
269 Industries supporting real estate
Working continuously on innovation in products
Housing Finance
Requires new products
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The Solution
Construct or Manufacture
What we do not Know
The Process
Customized or Standardized
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Development Process
Customized=Expensive =not affordable
Cost
Contractor
Construction= On Site
Labor inefficiency
Material wastage
Material
Manufacture
Consultants
Architect
Approvals
Planning
Land
Isolated Supply Chain
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Time
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Customized = Expensive
Expensive
= Not Affordable to Masses
from 250 million to 800 million by 2030
Affordability = Standardization
Not in Control
LAND & APPROVALS
All the current discussion are
focused on NOT IN CONTROL
In Control
PLANNING & CONSTRUCTION
Scope for INNOVATIONS and new business models
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Automobile Industry
Integrated supply chain
Image: BMW
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There are 4000 components in a typical western urban home.
On site
Off site
FOUNDATION
FLOOR
WALLS
Embedded System
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ROOF
INFILL
Image: Blu Homes
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Planning & Construction
Component
Component
Fabricators
Component
Fabricators
Assemblers
Component
Fabricators
Assemblers
Component
Fabricators
HOME UNIT
Component
Tier 3
Tier 2
Tier 1
Integrated supply chain
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PRODUCT
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Yard- Basic
Hybrid Embedded
Fully Automatic
Factory Manufactured
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Assembly line and Standardization
Standardization with customization
Product with Services
What we require is not only a Model T and Ford Motor Company equivalent
but INDUSTRY CATEGORY where houses can be manufactured and
customized like Dell and Serviced like Apple in an INTERATED MANNER
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Design
Build
Show
House
Set up entity
to manage IP
Supply Chain
Suppliers exist;
chain needs to
be setup
Model
Evolves
ICH
Kt-1
Along with
technical
partners
PW
Manager
Role:
•R&D
•Marketing
•Supply Chain
Development
•Training
•New Products
Patented
Panel
Manufacturer
•Investors
required
•Multiple
locations
KT
To be
established
IT Binds
everything
together
Authorised
contractor
sources from
above and
builds
Business Model
Customer
care cum
sales outlets
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Customer
gets his house
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Enabling eco systems
States
Government
Assemblers
Skills Training
Government
Policy
Manufacturing
Units
Manufactured
Homes
Regulators
Banks
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.
MANUFACURED HOMES IS THEREFORE A HUGE OPPORTUNITY
TO CREATE A SOCIAL AND ECONOMIC IMPACT ON INDIAN ECONOMY
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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.
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Hybrid Model- 40,000 SFT serviced units in 6 months
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About Us
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
Healthcare
Housing
Education
COMPANY OR
ASSET
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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