Danish Rashid ACC Ltd India January 2014 Green Building Centres in India
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1 Danish Rashid ACC Ltd India January 2014 Green Building Centres in India An opportunity to realize the dreams of millions
2 Agenda Knowledge Enhancement Program Background Business Concept Concrete Product Centers Future Plans - Roadmap Conclusions 2
3 Rural Housing Shortage in India Everyone has the right to housing, adequate for the health and well-being of himself and of his family mn Housing Shortfall Article 25 of the United Nation s Universal Declaration of Human Rights Shortfall Obsolescence Congestion Temporary houses Supply of building materials by rural producers is inadequate 55% of the total houses constructed need major alterations and repair Source: (12 th Fiver year plan Rural Housing) 3 3
4 Housing Shortage : An opportunity Habitat for Humanity International: Poverty Housing in the Asia Pacific Report As governments move from providing housing directly to the poor toward enacting enabling policies, opportunities are opening that favor private sector and community involvement, nongovernmental organizations (NGOs) and community-based organizations (CBOs). 100% 90% % % 60% % % % 20% % % Pucca Semi-pucca Kutcha New houses built per year (million) Area Rural Urban Total
5 Where are we today? Rural construction takes place on a completely random basis No architecture, quality standards, common construction practice in place slum construction & desolate building substance no lucrative market for professional construction product suppliers => Urgent need & opportunity to develop robust market => where distinct customer needs meet construction quality 5
6 Engagement of Stakeholders 6
7 Critical assessment SITUATION Acute shortage of building materials in rural areas OPPORTUNITIES Local production of quality green building materials Driving Acceptance of products Growing market, yet unfulfilled demand Enhance access to affordable and aspirational housing Absence of credible business solutions for MSMEs Micro, Small, Medium Enterprises Emergence of Clusters Development of value chain Driving profitable enterprises, jobs and investment 7
8 Agenda Knowledge Enhancement Program Background Business Concept Concrete Product Centers Future Plans - Roadmap Conclusions 8
9 Objective To develop a sustainable business model for rural and semi-urban India with a clear mandate of providing value-for-money housing solutions to customers through concrete product Centers of Excellence Building Sustainable Enterprises creating new markets 9
10 Developing the Ecosystem Local Business Associate Design Services Customer Financial Services Construction Services 10
11 Value Chain ACC Quality assurance Business Partner Customer Establishment and scaling of centers DA / TARA Machines Skill Development Branding Material Testing Equipment Supply / Commissioning Product Manufacture Design Services Installation Services Access to Finance Home owners Commercial use Public buildings Infrastructure Training After-sales Services 11
12 Agenda Knowledge Enhancement Program Background Business Concept Concrete Product Centers Future Plans - Roadmap Conclusions 12
13 3 pillars of Centers of Excellence HIGH VISIBILITY Aesthetically designed Branded products Locally accessible ASPIRATIONAL Affordable Products Validated Technology HIGH QUALITY Certified Products 13
14 Implementation Centers of Excellence Materials FA Cement & Flyash Coarse sand Foundation blocks, FA bricks Production Flooring & pavements Roofing tiles Know-how Material quality Construction products Building design 14
15 Products used for construction Roofing solution Roofing Tiles Plank & Joist Frame solution Door & Window Frames Walling / Foundation solution Fly ash Bricks Concrete Blocks Flooring solution Floor Tiles Pavers 15
16 Technology, Machinery and Products TYPES OF MACHINE MX PRODUCT PRODUCED Fly ash Bricks ADDITIONAL INFO Capacity : 8000 bricks/ day FTE : 8 persons Micron Tiles Capacity: 300 tiles/ day FTE : 3 persons Greencast Pavers, Floor tiles Capacity: 1000 pavers/ day FTE : 6 persons 16
17 Technology, Machinery and Products TYPES OF MACHINE MX PRODUCT PRODUCED Fly ash Bricks ADDITIONAL INFO Capacity : 8000 bricks/ day FTE : 8 persons Micron Tiles Capacity: 300 tiles/ day FTE : 3 persons Greencast Pavers, Floor tiles Capacity: 1000 pavers/ day FTE : 6 persons 17
18 Policies and Guidelines 18
19 Design of Centers 19
20 Marketing and Branding 20
21 Improved construction services Empowering masons through training 21
22 Redefining affordable housing Old Houses New Houses 22
23 Agenda Knowledge Enhancement Program Background Business Concept Concrete Product Centers Future Plans - Roadmap Conclusions 23
24 Potential for Future growth HUBS No of centers SPOKES No of retail outlets Additional Cement utilization (MT) NA No. of districts in India : 640 Avg. no. of centers per district : 2 Potential for no. of centres :
25 Agenda Knowledge Enhancement Program Background Business Concept Concrete Product Centers Future Plans - Roadmap Conclusions 25
26 Sustainability and Affordability Impact created by each center of excellence 770 MT of CO2 emission saved per year 6480 MT soil saved per year 4200 MT of waste utilized per year Building material worth INR 15 million (USD 250 k) created per year 20 livelihoods created directly and 60 livelihoods created indirectly High quality building material for up to 200 houses in one year 26
27 Triple bottom line impact Economic Returns Environmental Returns Increase in cement consumption by 0.64 million MT in 5 years (trade sales) Increase in revenue from INR 4.16 billion (USD 0.69 billion) in 5 years Increase in EBITDA from INR 576 million (USD 9.6 million) in 5 years Royalty of INR 60 million in 5 years (at 2% of production cost) 120,000 MT of CO2 emission saving over next 5 years 1.1 million MT of virgin natural resources saved over next 5 years 0.6 million MT of waste utilized over next 5 years Social Returns Building material worth INR 2.4 billion (USD 40 million) created over next 5 years 12,800 livelihoods created both directly and indirectly over next 5 years High quality building material for up to houses made available 27
28 Vidisha Green Building Centre 28
29 Kushi Nagar Green Building Centre 29
30 Alwar Green Building Centre 30
31 Lucknow Green Building Centre 31
32 Thanks 32
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