Professional Documents
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$300 House in India - Business Plan
$300 House in India - Business Plan
reality in India
Gaurav
Nitin Antoine Sophie Felipe
Thapan-
Sharma Brousse Roux Valdez
Raina
(India) (France) (France) (USA)
(India)
2
Our sincere THANKS to…
Prof. Vijay Govindarajan
Christian Sarkar
Prof. Richard McNulty
Pat Palmiotto and the
Prof. Jack Wilson
Kim Keating
Penny Paquette
MBAPO
And many others
3
We have been involved in the project
since September 2010
Key Milestones:
4
Our goals were more than a business plan
The optimism
towards life and Affordable and
sheer strength of practical housing
people we met gives Business solution
us hope Empathy Plan
Humility
The builders and residents want these slums to be replaced by fancier building
complexes, posing a challenge to an existent economy.
7
Living conditions are unhygienic and
dangerous
Stray animals, accumulated trash, and dirty sewage water are just outside the
residence.
8
Our KEY findings from the project
• Potential Indian market size of $40B
Addressable market
9
Existing constraints and our assumptions
Constraints identified Assumptions
Willingness To Pay (WTP) Unit price is set at $1,538 (Rs. 68,000)
representing the lower limit of Government
grants for housing for EWS
Materials (~70% of total house cost) Compressed Stabilized Earth Block (CSEB)
Labor (~30% of total house cost) Prospective owners can be employed in the
construction of the house helped by a
supervisor, hence providing employment
opportunities to the community
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Challenge | Business Plan | Awareness Campaign | Alliances | Next Steps 10
ITS ALL ABOUT THE EXECUTION
Meerut, UP
Prices range from Rs. 3 to 7 Lakhs i.e.
1 project from $6,800 to $15,900
69%
18% Average WTP1 = $1,800 (Rs. 79,000)
32.9 (e.g. Rajiv Aawas Yojana Scheme)
22.7
Equipment for 2
sanitary units only
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Challenge | Business Plan | Awareness Campaign | Alliances | Next Steps 15
Our execution model
Time 1 week 1 month 1 week
Finish
Send 5 machines
Buy 25 machines to Let the blocks construction
on site to make
make CSEB dry up with
the blocks
supervisors
12 units in 5 days
Capacity: 7 people / machine 1 month to get
with the help of 3
1,500 blocks / day 5 to prepare site 100% of strength
supervisors
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Challenge | Business Plan | Awareness Campaign | Alliances | Next Steps 16
Price Breakdown (USD)
Total cost of house : $1,250 GM=19%
288 1,538
220
2,250
blocks @ 53 61
23cts/block 396
1/12 of total
521 sanitary cost of
Machine $2,600
operators +
Incl. roof supervisors
at $226
Cost of blocks Other Cost of fuel Labor Sanitary unit Gross margin Price
(house only) equipment (incl. (1/12 of total
roof) cost)
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Challenge | Business Plan | Awareness Campaign | Alliances | Next Steps 17
Revenue and cash flow sequence
# of houses units built Cash flow sequence ($’000)
76% 80%
72% Purchase of 25
400 426
68% new machines 375
64% 2,400 + facilities 324
60% 2,280 267
2,160
2,040 160
1,920
1,800
40% (41)
1,200 (123)
15% Replacement of
450 the 25 machines
after 5 years
0%
- (698)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020
Houses built % capacity Initial investment FCF
Design Publish
We have a
insights from
Contest submission
India
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Challenge | Business Plan | Awareness Campaign | Alliances | Next Steps 20
Our submission to the design contest
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Challenge | Business Plan | Awareness Campaign | Alliances | Next Steps 22
ALLIANCES ARE KEY FOR THE SUCCESS OF THIS PROJECT
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Challenge | Business Plan | Awareness Campaign | Alliances | Next Steps 24
Role of each partner
• Both at Central and State level; Subsidies through
Government of India Rajiv Aawas Yojana; Constructions Permits
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Challenge | Business Plan | Awareness Campaign | Alliances | Next Steps 25
A LOT HAS BEEN ACCOMPLISHED…
OUR JOURNEY
KEEP THE CONVERSATION GOING AT:
http://www.300house.com
[email protected]
QUESTIONS?