dbs profile 2012ok part1b - dbs affordable home strategy...

DBS Communities

Learning and Responding to optimally “Design Build Serve”

1000 daysJuly 2009-June 2012

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By 2020, DBS Communities will have built 50,000

liveable and affordable homes, and will have grown and

expanded into a large social enterprise where people who

join as customers transform their lives and become partners

in the movement, and mentor newcomers.

Contents

Journey of 1000 days, 2009 - 2012

Preface 01

Executive Summary 05

DBS Communities: An Overview 08

2009: DBS – Starting the Journey 09

Potential DBS Customers – A Snapshot 22

The DBS Business Strategy 27

2010: Piloting, Learning and Responding to Needs 28

The Design Charette 29

DBS Pilot Project – Umang Lambha, Ahmedabad 35

Credit Camps 45

Housing Facilitation Centre - Griha Pravesh 49

2011: Progress and Learning 61

Umang Narol 62

Adalaj Campus and ASHRAM 66

Lambha Customer Profiling - The Findings 71

2012: Partnerships and Management Systems 77

Umang Sachin, Surat 78

Setting a Benchmark for DBS Umang Projects 80

Key Lessons after 1000 days 83

Beyond June 2012: Way Forward and Future Plans 94

The Core Team 98

Our Partners & Associates 107

Media Coverage 108

Acknowledgements 110

Notes and Abbreviations 111

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DBS aims to establish an efficient, viable and

transparent system for the large-scale mass-production of

houses that are affordable and financed through savings and

credit systems that are accessible to the bottom half of the

socio-economic pyramid.

PrefaceAs an architect, I have

long been interested

in developing

affordable housing for

the lower income

groups in India, where

the need for affordable

housing is immense.

In pursuit of this

interest, I had experimented with this market

with a low cost housing development called

Nandan Nagar in 2004. Although the Nandan

Nagar pilot was not a success, it provided

invaluable learning and insights that convinced

me that affordable housing was a significant

niche business area.

After a hiatus of three

years, my passion for

delivering affordable

houses intensified

when I read CK

Prahalad's “Fortune at

the Bottom of the 1Pyramid”. Specifically,

I was enthused by

Prahalad's argument that the economically

lower sections of society are a large market in

emerging economies and their needs could be

met through innovative business models that

have to be low margin – high volume. The

enthusiasm led to my decision to focus on this

niche market systematically. I asked B.R.

Balachandran, an architect and planner who

shared my passion and with whom I had been

discussing my desire of working for this niche

market, to partner with me in this endeavour. I

also requested Dinesh Jain, a chartered

accountant, to join us. In 2009, we launched DBS

Affordable Home Strategy Limited.

The first step was to articulate our vision, mission,

objectives and approach. We were clear that to

reach our potential customers, we needed to build

affordable houses and tackle the hindrances that

low-income families face in purchasing houses in

the formal market. We realised that we needed

expertise in community development and

interaction. We therefore decided to partner with

Saath - an NGO with 20 years of experience

working with the urban poor, and asked its co-

founder, Rajendra Joshi to join our core team,

which at the time included senior researcher -

Sowmya Haran, architects - Vineet Chadha and

Anjum Gupta, Chief Executive Officer - Manish

Pancholi, Vice-President Finance - Sudershan

Iyenger and Management Consultant - Ravi Iyer.

The Team believed strongly in learning from experts,

practitioners and businesses, and in getting a better

understanding of the issues related to affordable

housing and its customers. Thus, with the general

objective of getting our strategy endorsed, we

conducted a Design Charette in January 2010. The

Charette provided important insights and reiterated

understanding that affordable housing would work

when issues of design, livelihoods and housing

finance were addressed pro-actively as part of our

business model. This contributed to the formalising

of the core of our approach and business strategy.

With clarity about our approach and articulation of

our business strategy, we were ready to launch a

pilot project. “Umang Lambha” was launched in

Ahmedabad in May 2010. The response to the

project was overwhelming with almost 300 houses

Journey of 1000 days, 2009 - 2012

DBS Affordable Home Strategy Limited | 01

invited Mr Sakti Prasad Ghosh who has been

associated with the housing sector in India at

the highest policy levels, to join our Board of

Directors. Further, to enhance design, quality

and standardisation, DBS has collaborated with

Mr Nimish Patel (architect, urban designer) and

Ms Parul Zaveri (architect) of Panika who have

since 1979, worked on architectural, planning,

conservation, renovation and interior projects of

varied scales. A dedicated affordable housing

division in Panika will work on the DBS projects.

In this journey of 1,000 days since DBS

Communities was established, I believe we

have laid a strong foundation by taking a

holistic approach that benefits all stakeholders,

and have progressed substantially towards

addressing our objectives. Our business

approach of a virtuous cycle of research,

practice and reflection continues to provide rich

experiences that enrich our understanding

booked within a week. The experience confirmed

that there is a huge demand for affordable housing.

In March 2011 we launched a second project -

Umang Narol in Ahmedabad, and in February 2012,

we ventured out of Ahmedabad to launch Umang

Sachin in Surat. With each project, we

experimented with a different implementation

model. For Umang Lambha, DBS bought the land

and undertook the construction work, for Umang

Narol, we partnered with a landowner and took

responsibility for project construction and

marketing, and for Umang Sachin, we partnered

with landowners who are responsible for

construction while DBS is responsible for marketing

and customer management. For each project, we

have been ably supported by housing finance

companies, such as Micro Housing Finance

Corporation Ltd, GRUH Finance and Muthoot

Finance that are venturing into the affordable

housing space and providing loans to the formal

and informal sectors.

In looking for good practices in the affordable

housing sector in India, we realised the need for

research and considerable advocacy with policy

makers and practitioners. We therefore established

a separate entity - Academy for Sustainable Habitat

Research and Management (ASHRAM) for this

purpose. In addition, DBS and Saath established a

housing facilitation center called Griha Pravesh that

works with builders and housing finance agencies

to increase awareness about and access to

housing finance and affordable housing.

In order to better understand the big picture in

affordable housing and to establish the highest

standards of governance and accountability, we

DBS Communities believes in

accountability and transparency in

all its actions. For effective and

efficient use of all its resources, DBS

is in the process of operationalizing

an enterprise resource planning

system that will integrate internal

and external management

information across the entire

organization and facilitate the flow

of information between all functions

of DBS Communities.

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02 | DBS Affordable Home Strategy Limited

about affordable housing. We have a dynamic

and dedicated team that is doing its best to

Design and Build affordable houses to Serve

our customers.

DBS Communities has taken this opportunity of

sharing its experiences, observations and

lessons learnt in the pursuit of enabling low

income families experience the 'joy' of owning a

house. This includes an overview of the

processes and the efforts, events and activities

that have gone into planning, designing and

initiating Umang Lambha, Umang Narol and

Umang Sachin, as well as the need for

handholding / supporting people in getting their

paperwork together and in their interactions with

housing finance institutions.

In October 2012, our first customers will start

occupying the houses that DBS Communities

has built. I am confident that apart from owning

their individual houses, these customers will

show us where we have been right and where

we need to improve our services.

We expect to continue the process of learning

and responding to new lessons, insights and

challenges as we work towards achieving scale

and volume, and thereby impact not only the

lives of those who purchase houses built by

DBS Communities but also those who want to

cater to the niche market. This includes people

involved in policy-making, financing housing

and infrastructure projects, in strategic planning

and in supporting communities.

Sanjay Shah

June 2012

Journey of 1000 days, 2009 - 2012


Affordable home developers must continue to innovate to

be able to provide small homes at the most competitive price.

It is clear that there is a much larger market waiting to be

tapped. Ideally housing for this segment in the city of

Ahmedabad should be kept under Rs.7,00,000. Incrementally

of the housing unit can be explored in terms of interior

finishes. The more austere the finishing's, the greater will be

the affordability and the greater the access to formal mortgage-

able asset creation.

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In Gujarat, there is saying that “If start-ups

survive the first 1000 days, they will survive

through” complemented by the belief that “the

test of future success of a business is its

survival in the first 1000 days”. DBS Affordable

Home Strategy Limited, also known as DBS

Communities, which has been launched with

the dream of revolutionizing the housing

industry within a decade, crossed this

milestone of 1000 days in May 2012. The DBS

Team is confident that the lessons learnt and

actions taken over the past 1000 days have

contributed substantially to strengthening the

organisation and the processes, systems and

approaches for increasing the supply and

access to affordable housing. This Report

provides a glimpse of the dreamers, their

dream and the actions taken over 1000 days by

DBS Communities and its partners to works

towards accomplishment of the dream.

The aim of this chronologically organised report

is to document and share with the reader, the

efforts, events and activities that have gone into

planning, designing, initiating and marketing

three DBS housing projects, as well as the

experiences, lessons and actions taken to meet

newly identified needs. Each step of the

process from articulating the DBS Communities'

business strategy to the introduction of

innovative processes and practices provides

significant lessons for housing finance

institutions, developers, non-governmental

organisations (NGOs) and other stakeholders

interested in the affordable housing eco-

system. The chronological organisation of the

report draws attention to the flexibility and

customer responsive approach of the DBS

Team and its partners. It emphasizes the DBS

Communities' approach of learning from and

responding to the context with appropriate

strategies and actions.

The report provides the reader with insights and

information about: a) The Vision, Mission and

Business strategy of DBS Communities; b) An

anecdotal study of two potential customers, a

snapshot study 100 potential customers and a

study of 360 Umang Lambha customers; c) Three

Umang projects launched and under construction;

d) the financing issues identified from the

perspective of developers, housing finance

institutions and home buyers, and e) the facilitating

actions taken by DBS Communities to bridge the

gap between requirements for loan sanctions,

documentation and margin money available with

Umang customers. The process and experiences

have also provided insights into the needs and

characteristics of potential customers and about

factors that hinder or support affordable housing.

The Preface by Sanjay Shah provides a glimpse of

his involvement in the affordable housing market

and his focus on providing value-additions to the

customers rather than a minimal house. These

Executive Summary

Each step of the process from

articulating the DBS Communities'

business strategy to the introduction of

innovative processes and practices

provides significant lessons for housing

finance institutions, developers, non-

governmental organisations and other

stakeholders interested in the affordable

housing eco-system.

Journey of 1000 days, 2009 - 2012


experiences helped Sanjay in developing his

approach and in strategizing and planning for

affordable housing schemes. He provides an

overview of the events and activities of the 1000

days.

At the end of 2008 when Sanjay Shah, B R

Balachandran and Dinesh Jain decided to set-up a

new organisation for building affordable housing,

they were convinced that they should go slow, and

work-out a full model before 'launching a project

and starting construction'. This section emphasises

the strong belief amongst the Core DBS Team that

a market based solution is possible and that any

element of subsidy would be detrimental if a robust

real estate market were to develop for the identified

customer group. Gradually, many of the ideas that

were discussed at the time were written out.

In 2009, DBS Affordable Home Strategy Limited

was incorporated with the objective of meeting the

need of affordable housing for families earning

between Rs.8,000 to Rs.20,000 per month. The

three core elements for providing affordable

housing were identified as: i) Design and

production of housing, that is, right sizing and right

pricing of homes; ii) Housing micro-finance, that

is, enable access of customers to finance for

housing; and iii) Community development

through health, education and livelihood

interventions. The emphasis on community

development highlights the Team's conviction in

getting the required expertise through

collaborations and platforms such as the 5Design Charette .

In January 2010, DBS organised a Design 5Charette where the direction, processes and

activities that the Team planned to introduce

were presented. Although the DBS strategy and

approach were largely endorsed, DBS was

cautioned by housing finance companies and

Ashoka Foundation about setting-up a housing

finance company. The key concern was the

likelihood of a conflict of interest and the

possibility of lapses in due-diligence in the

pursuit of processing loans quickly for more

customers. The issues identified at the Design

Charette were addressed by DBS while

planning its pilot project in Lambha under DBS's

‘Umang’ banner.

The launch of Umang Lambha was a significant

step for DBS Communities and it put in

intensive efforts to publicise the scheme

amongst potential customers. The response of

customers confirmed that there is a huge

demand for affordable housing. It also revealed

that while most people in the target group

aspired for larger houses, they could only afford

one or two room houses, while those who could

afford the three-room apartments were from

higher income groups. DBS Communities

therefore decided to confine itself to

With the experiences and lessons

learnt in strategizing, initiating

partnerships, and launching joint

venture projects with different

implementation arrangements, DBS

Communities has taken significant

actions that have resulted in value

additions for its customers.

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constructing one and two rooms houses.

At the launch of Umang Lambha and in the

following weeks, DBS and its partner Saath

identified the need for a platform for more

intensive interaction between potential

customers and financing entities, and for

innovative processes to guide customers,

assess their affordability and process the loans.

It also highlighted financing problems because

of slow and irregular cash-flow from people

booking and purchasing the apartments. These

observations and experiences led to the

decision for organising Credit Camps, and for

setting-up an autonomous and dedicated

single-window facilitating entity - Griha Pravesh.

DBS Communities has been working closely

with housing finance companies such as MHFC

and HFFC to refine arrangements at the launch

of projects, organise Credit Camps and support

potential customers. The outcomes of the

Credit Camps and the facilitating support

through Griha Pravesh reveal the value-

additions and good practices that have been

introduced by DBS Communities.

DBS launched Umang Narol in March 2011 –

ten months after the launch of Umang Lambha

and Umang Sachin in Surat in February 2012.

The experiences after the launch of Umang

Lambha, especially problems faced because of

irregular cash-flow led to DBS adopting a

collaborative approach for these projects. Both

projects are being implemented in partnership

with the landowners on a profit-sharing basis.

DBS has retained the responsibilities for the

design, planning and marketing of both

projects and for construction of Umang Narol.

Its partner RJD Buildcon is constructing Umang

Sachin. The outcomes and lessons from these

collaborative approaches will influence future

partnerships for Umang projects, and influence

others involved in the affordable housing eco-

system.

During this period of 1000 days, DBS has

conducted a short anecdotal study, a snapshot

study of 100 families that represent potential DBS

customers, and a survey of 360 customers who

have booked apartments in Umang Lambha and

Umang Narol. These studies were undertaken to

better understand the needs, affordability and

aspirations of the DBS target group, and the

findings provide interesting insights about the

customers of affordable housing. Subsequently, the

DBS Team has been closely observing the

emerging needs, analysing the studies and survey

findings and is incorporating the lessons learnt on a

continuous basis. Several organisations too have

shown keen interest in the DBS strategy, approach,

and processes for enhancing access to affordable

housing.

Journey of 1000 days, 2009 - 2012


EFFORT EVENT OBSERVATION RESPONSE

2009

ŸEvolve & refine DBS Business s Strategy

ŸTo have required expertise in DBS

ŸCreate a brand identity

ŸDBS Affordable Home Strategy Ltd. incorporated

ŸBrand name ‘Umang’ decided

ŸCollaboration with Saath

ŸNeed for expertise

ŸNeed to understand way of life of potential customers

ŸSnapshot study

ŸAnecdotal study of families of Dilipbhai & Tulsiben

ŸExpansion of Core Team

2010

ŸImplement pilot to test concepts, ideas & approaches

ŸTeam strengthened

ŸPartnership with landowners for Umang Narol

ŸGriha Pravesh incorporated

ŸLaunch of pilot Umang Lambha in Ahmedabad

ŸDesign Charette

ŸNeed for a housing facilitation centre

ŸAlternative development & revenue model

ŸGriha Pravesh & Parivaar Pragati Seminars

ŸCredit Camps

ŸClose cooperation with housing finance entities

2011

ŸGreater efficiency in project design & management

ŸGreater efficiency in resource planning & management

ŸASHRAM Campus inauguration

ŸLaunch of Umang Narol in Ahmedabad

ŸNeed to understand way of life of potential customers

ŸExpand association with experts

ŸConduct research on 360 Umang customers

ŸAchieve value-additions for customers

2012(Up to May)

ŸStrengthen management systems

ŸDocument developments of 1000 days

ŸLaunch of Umang Sachin at Surat

ŸGriha Pravesh expands collaboration with developers

ŸContinue tracking customers and their progress

ŸBenchmark for Umang projects required

ŸDesign Manual

ŸDBS Team expansion & collaborations with experts

WayForward

ŸAchieve greater transparency & financial & resource efficiency

ŸIncreased interaction with entities involved in affordable housing eco-system

ŸLaunch of Umang projects in other cities

ŸOrganise & participate in events for sharing experiences & lessons

ŸGrowth in demand for affordable housing

ŸHave a sustainable revenue model

ŸMore collaborations

ŸStrengthen staff capacities

ŸAdvocacy for policy & regulatory reforms that can catalyse the market

DBS Communities:

An Overview

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2009

DBS: Starting the Journey…

We expect to continue the

process of learning and

responding to new lessons and

insights as we work towards

achieving scale and volume, and

thereby impact not only the lives

of those who purchase houses

built by DBS Communities but

also those who want to cater to

the niche market at the bottom of

the socio-economic pyramid.

Journey of 1000 days, 2009 - 2012


Three individuals who were independently

experimenting with alternative solutions in their

areas of work, came together in late 2008. Their on-

going dialogues, ideas and a desire for innovation

were catalysed by C.K. Prahalad’s path-breaking

book - The Fortune at the Bottom of the Pyramid

(2005). The three people were:

l Mr Sanjay Shah as a Real Estate Developer

brought in fifteen years of experience as a

builder in Ahmedabad, Dubai and Morocco, and

experiences of innovative cost control, pricing

and effective quality management systems. He

also brought in his vision and capabilities as a

strategist who believes in the viability of a market

based approach to community housing.

l Mr B.R. Balachandran as an architect, planner

and strategist with nearly two decades of

professional experience, brought in his

understanding of the urban housing process

with its multiple dimensions, and a focus on

systems and processes that enable affordability

for the target customers of DBS.

l Mr Dinesh Jain as a Chartered Accountant

brought in over two decades of experience in

corporate finance, of conceptualizing new

enterprises and guiding them to their full

operation, and expertise in building large and

robust financial management systems.

During initial discussions, these individuals agreed

that development of affordable housing for low

income groups could not be mixed-up with other

real estate development initiatives.

Subsequently, the passion, drive and a strong

belief in the viability of affordable, good quality

and market based housing solutions for low-

income families led to the incorporation of DBS

Affordable Home Strategy Limited on 7 July

2009. The focus on designing and building

affordable houses for families who do not have

access to the formal real estate market because

of their economic situation is reflected in the

name of the enterprise – that is, DESIGN,

BUILD and SERVE – DBS.

As the Team addressed key issues involved in

successfully enabling people in the informal

sector purchase a house, it identified the need

for focussing on the communities and people

for whom the houses and housing projects were

to be built. The Mission and Vision of DBS

Communities are therefore built on the inherent

strengths of a community based approach.

This led to a study led by Balachandran and

Sowmya Haran. The two families that were

studied were of Dilipbhai – an office assistant

employed in the private sector, and Tulsiben – a

vegetable vendor. The aim was to get a better

understanding of the need and affordability of

families living in rental and own accommodation

in informal settlements; this was our first

concept level presentation, namely, “A House

for Dilipbhai” and “A House for Tulsiben”.

The Beginning

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“A House for Tulsiben”

Tulsiben, who is only 28, lives with her family in a

144 sq.ft. house in Behrampura. Tulsiben owns the

house but has no documentation for it. She has a

water connection in the house but shares a toilet

with other families. She also has an illegal electricity

connection for which she pays Rs.150 per month.

Tulsiben and her husband are vegetable vendors

who also make and sell kites seasonally. She owns

a handcart/ lari, which they use for vending

vegetables.

Tulsiben wants to buy a house costing up to

Rs.2,00,000 for which she cannot mobilize any

down payment but for which she is willing to pay a

monthly instalment of Rs.3,000. At the market rate

of Rs.1,250 per sq.ft., she can buy a house of about

160 sq.ft. However, the smallest legal house will

start at Rs.3,50,000 or Rs.4,00,000, and houses of

around 160 sq.ft. are available only in slums or

illegal layouts.

“A House for Dilipbhai”

One of the persons' whose way of life was

studied was Dilipbhai - an Office Assistant who

earns Rs.4000 per month. Dilipbhai rents a

house of 120 sq.ft. where he lives with his wife

and two children. He pays the house owner a

monthly rent of Rs.1500 and Rs.30 per month

for the water. Dilipbhai's family shares a

common water tap and toilet with the house

owner's family.

Dilipbhai wants to buy his own house for which

he can pay a monthly instalment (EMI) of

Rs.2000. In addition, he can mobilise some

down payment.

At Rs.1250 per sq.ft., Dilipbhai can buy about

200 sq.ft. of built-up area. However, houses of

200 sq.ft. are available only in slums or illegal

layouts, and hence Dilipbhai has no choice but

to live in an informal settlement.

Thus, if Dilipbhai purchased a 150 sq.ft. house

for Rs.200,000, and was supported through

community development initiatives to start

saving money regularly, repay the housing loan,

upgrade his skills, and improve his income, at

the end of three years, he will be able to take an

additional loan and move to a house of about

300 sq.ft. area.

Journey of 1000 days, 2009 - 2012


The DBS Mission and Vision evolved to

incorporate the dreams of the initiators and got

articulated as follows:

Vision

By 2020, DBS Communities will have built

50,000 liveable and affordable homes, and will

have grown and expanded into a large social

enterprise where people who join as customers

transform their lives and become partners in the

movement, and mentor newcomers.

We visualize that our enterprise will be

acknowledged as the market leader and

pioneer in effective approaches to community

housing and produce 10,000 houses every

year. Our customers are our brand

ambassadors having created great lives for

themselves in the environment we nurtured.

We visualize that hundreds of real estate

companies/ organizations will be offering

liveable and affordable housing solutions for all

income groups across cities in India. DBS has

influenced radical reforms in housing policy and

housing market operations in India.

Mission

To establish an efficient, viable and transparent

system for mass production of houses, which are

affordable and financed through savings and credit

systems, and are accessible to the bottom half of

the social and economic pyramid.

Governance

DBS Communities believes in accountability and

transparency in all its actions. The DBS Board of

Directors, which comprises the CMD – Mr Sanjay

Shah, two independent Directors and four Directors,

meets at least every quarter to review progress and

take strategic decisions.

DBS also believes in effective and efficient use of all

its resources, and is in the process of

operationalizing an enterprise resource planning

(ERP) system to integrate internal and external

management information across the entire

organization. The ERP covers finance/ accounting,

construction, sales, marketing, planning, material

purchasing, inventory control etc. The aim is to have

a central repository for all information and facilitate

the flow of information between all functions of DBS

Communities.

Evolving the

Vision and Mission

DBS aims to establish an efficient,

viable and transparent system for the

large-scale mass-production of houses

that are affordable and financed

through savings and credit systems

that are accessible to the bottom half

of the socio-economic pyramid.


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Developing

the Business

DBS aims to establish an efficient, viable and

transparent system for the large-scale mass-

production of houses that are affordable and

financed through savings and credit systems that

are accessible to the bottom half of the socio-

economic pyramid.

The community housing projects that DBS

Communities wants to develop are targeted for

families primarily earning up to Rs.20,000 per

month. People in this segment of the urban housing

market find it difficult to purchase houses that are

constructed by mainstream real estate developers.

They are therefore largely resigned to living in

rented and/ or illegal housing. Their situation

deprives them of the opportunity to build legitimate

assets or wealth and they continue being trapped in

a vicious cycle of poverty and illegality.

As professionals and practitioners who had limited

experience in the affordable housing market and of

its potential customers, the DBS Core Team

decided to have a committed team of practitioners,

professionals, experts and advisers from related

sectors. The Team was gradually expanded to

include more like-minded individuals who

represented different sectors, and shared the

same passion and similar objectives - some as

part of the Management Team. With the

experiences and knowledge of practitioners on

the DBS Team, the business concept evolved

further to address multiple concerns and

issues.

DBS commenced its initial operations from 14

August 2009 with a staff architect whose first

task was to research local, national and

international efforts, models and experiments

for supplying affordable housing. The objective

was to understand the diverse issues, contexts

and paths taken to increase access to

affordable housing and to have knowledge

about innovative approaches and processes

that others have attempted.

In addition, Sowmya Haran – an architect and

urban planner, and architects Vineet Chadha

and Anjum Gupta joined the DBS Team.

Sowmya took responsibility for research and

documentation while Vineet and Anjum started

exploring and identifying appropriate design

options for one, two and three room

apartments.

In 2009, DBS procured 1.5 acres of land in

Ambapur near Adalaj for developing a campus

to accommodate the DBS Corporate Office and

other documentation, conference and training

facilities.

By 2020, DBS Communities will have

built 50,000 liveable and affordable

homes, and will have grown and

expanded into a large social

enterprise where people who join as

customers transform their lives and

become partners in the movement,

and mentor newcomers.


Journey of 1000 days, 2009 - 2012

"Umang”:

Deciding on a Brand Name

In an environment where the Government is

aggressively promoting construction of 'basic'

houses for slum dwellers and the poor under

various schemes, the DBS Team decided on

creating a unique image for the houses it

builds. The aim was to establish the significant

and differentiated presence of DBS in the

market – both for the customers and the

investors/ financing institutions. The DBS Team

therefore decided to create a 'brand' identity

that highlighted the management's strategic

focus and choices, quality, features and design

of the apartments, and the added value in terms

of community development initiatives. Since, the

long-term aim is to have customers who are

satisfied with physical and operational functionality,

quality, and performance of the schemes of DBS

Communities, the Team decided on using the name

“UMANG” - meaning Happiness. The name

“Umang” draws attention to the emotional aspect

and satisfaction customers would experience once

they moved into DBS constructed housing projects.

The Team decided to create a 'brand'

identity for DBS projects that

highlighted the management's

strategic focus and choices,

Subsequently, the Team decided on

using the name “UMANG” -

meaning HAPPINESS or JOY


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Thinking about

a Pilot Project

As the business strategy and approach were being

evolved, it was apparent to the Core Team that it

had to demonstrate its commitment and the viability

of its business approach to people whose support

and collaboration were required.

Some team members felt strongly that they needed

to implement a project to test their initial concepts,

ideas and approaches. This required the purchase

of land in a location that would be attractive for

people for whom the project was to be developed.

DBS identified a plot, which was reasonably priced

at Lambha in Ahmedabad. The plot is located along

the Ghodasar Canal and next to the Lambha - Narol

Highway (NH 8) in a developing residential area

within the boundary of Ahmedabad Municipal

Corporation (Pin Code 382440). The site is close to

Aslali Circle/ cross-roads on the 200 feet Ring

Road. It is 3 kilometres from Narol crossing and the

BRTS route, and is easily accessible by city buses,

auto-rickshaws, shuttle services and inter-city

buses. It is also in close proximity of market places,

temples, schools and hospitals.

DBS bought this land (Original Plot) with money

borrowed on interest, with the expectation that

they would plan, develop and sell the

apartments, and repay the loan amount within

an 'average construction period'. The locality

was then mapped by Sowmya Haran and her

team of architects and planners.

Once the plot at Lambha was mapped, a

committed team of architects headed by Vineet

Chadha and Anjum Gupta started developing

the design options. By late 2009, a Concept

Plan for Umang Lambha and a presentation

were prepared for further discussion and

development. The Team presented the concept

plan to some practitioners (architects, planners,

urban designers) for their inputs. The

discussions revealed that although design,

construction, financing and customer issues

were significant elements for the DBS Team and

of the business strategy, it would be useful to

get a deeper understanding of who the potential

customers' were in terms of their existing

economic and spatial situation, their aspirations

and capacity for purchasing a house.


Journey of 1000 days, 2009 - 2012

Comparing Dilipbhai's House with Middle-Income Rental Accommodation

Dilipbhai’s House Private House

120 sq. ft. 3000 sq. ft.

Rent Rs.1,500 Own House Rent Rs.25,000

No individual toilet or water connection Has a water connection but Three toilets and plenty of water

shares a toilet with other families

Monthly cost per sq. ft. = Rs.12.50 N/A Monthly cost per sq. ft. = Rs.8.33

Tulsiben’s House

144 sq. ft.

Mr. Jayantilal Hansraj Darji

Flat No. G-109, Umang Narol.

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Anecdotal Study

Findings

The anecdotal study showed that the priorities

of potential DBS customers were:

i) An affordable house with drainage and

regular water supply,

ii) Easy to pay monthly instalments, and

iii) An easy and uncomplicated loan.

Bearing in mind the needs for an affordable

house and a loan that the families can

comfortably take, the DBS Communities' vision

for their future is:

l The families purchase a 150 sq.ft. house for

Rs.2,00,000,

l A community development agency helps

the families save, repay monthly loan

instalments regularly and also upgrade their

skills and improve their income, and

l In three years, the families take an additional

loan and move into a 300 sq.ft. house.

Considering the need to build houses that are

affordable for people earning up to Rs.20,000

per month, DBS Communities had to confront

the following issues:

l High land and property prices in the market;

l The sizes of houses being sold in the

market are too large for paying capacity of

people earning up to Rs.20,000 per month;

l The lack of credit worthiness of people in

the informal sector in terms of income proof

etc. for the formal approval of loans from

nationalised banks and housing finance

institutions, and

l The limited access of potential customers to

Micro-Finance Institutions.

Therefore, to construct affordable housing, DBS

identified the need to:

I) Build high density housing with a mix of unit

sizes and type,

ii) Reduce the share of land value in the price of

built-up area,

iii) Design efficient and at the same time

comfortable houses,

iv) Collaborate with housing finance companies

that offer loan products for people with low

incomes and in the informal sector, and

v) Support the customers in enhancing their

credit worthiness through improved access to

health and education services, skills upgrading

and participation in savings and credit groups.

In addition, to enable customers to purchase the

houses, DBS Communities needs to collaborate

with housing finance companies that offer loan

products for people in the informal sector, and

support the customers in enhancing their credit

worthiness through improved access to health and

education services, skills upgrading and

participation in savings and credit groups.

Journey of 1000 days, 2009 - 2012


Paths for meeting community needs

An AffordableHouse

A ComfortableLoan

High Land and Property Prices

House sizes too large for paying capacity

Lack of Credit Worthiness in terms of pay slips etc.

Limited or no access to Micro-Finance Institutions

• High density housing

• Reduce share of land value in price of built-up area

• Design efficient and liveable house

• Access to Micro Housing Finance Institution

• Community Development Programs for enhancing

credit worthiness

Need Factors to be addressed Means for enabling access to affordable housing

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Strengthening the Team

and Customer Focus

As the DBS Strategy was getting refined, the

need for having someone who had worked

closely with potential DBS customers, and

understood their context and needs was felt

very strongly. The aim was to have someone

represent the context and requirements of

potential customers' at every stage during

internal debates and decision-making. DBS

Communities therefore invited Rajendra Joshi, a

social entrepreneur and the founder and

Managing Trustee of Saath - an NGO working

for the urban poor to join the DBS Board of

Directors. Rajendra, who has introduced some

market-oriented strategies in development and

social interventions to improve the life of the

urban poor, accepted the offer in November

2009. He brought in the required focus on

community development and partnership with

Saath Charitable Trust, which has a wide

outreach to potential customers.

As the DBS discussed the issue further, the

Team members agreed that Saath would assist

potential clients in getting frequently required

services through an on-site Urban Resource 2Centre , improve their livelihood means and

ensure a long and lasting relationship.

One of the first activities undertaken with Saath

was the Snapshot Study of potential DBS

customers.

The snapshot study revealed that

just the construction of affordable

houses would not meet the needs of

the families. It was essential also to

support them for related and inter-

linked needs such as for getting

access to housing finance and

margin money, and for overall and

gradual improvement in the quality

of their lives through community

development initiatives.

Journey of 1000 days, 2009 - 2012


Call center worker

Municipal corporation employee

Foremen/ supervisor

Factory worker

Supermarket employee

Liftman

Security personnel

Driver

Pedal rickshaw driver

Auto-rickshaw driver

Beauty parlor workers

Stitching

Embroidery

Patchwork

Kite making

Sweeper

Farm worker

Casual laborer

Manual laborer

NGO worker

Anganwadi workers

Children's maid

Self-help group worker

Health worker

Pan/ cigarette stall

Small business

Mithai/ sweets/ confectionary shop

Milk vendor

Provision store

Vendor selling snacks

Henna vendor

Fruit vendor

Cloth/ clothes vendor

Clothes ironing

Restaurant

Cook

Household chores/ cleaning

Home manager

Hospital worker/ helper

Air conditioner repairing etc.

Cycle repairing

Garage work

Scrap vendors

Building/ construction work

Electrician

Fabricator

Metal worker/ rolling

Painter/ painting work

Pipe repairing

Plumber

Welder

Potter

Wood vendor

Wood polish work

Carpenter/ upholsterer

Furniture maker/ carpenter

Diamond worker

Tuition/ Teacher

Professor

The occupations of people who were surveyed included those listed below.

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Potential DBS Customers

- A Snapshot

the micro-finance group (40). It included people

living in Allah Nagar, Behrampura, Dani Limbda,

Jamalpur, Juhapura, Om Nagar, Santosh Nagar,

Sarkhej, Shah-e-Alam, Shakti Nagar, Someshwar

Nagar, Swami Narayan Nagar, Vanjara Vas, and

Vasna areas.

The survey methodology included structured

interviews and observations. Observation formats

were developed to capture the architectural quality

of the living spaces and the neighbourhood context.

The key findings from this Snapshot Study were:

• About 70% respondents can and are willing to

pay a monthly loan instalment of around

Rs.2,000.

• About 50% respondents would like a house in

the range of Rs.2,00,000 to 4,00,000.

• About 70% of respondents who want a house

are willing to relocate to an area beyond 5

kilometres from their current residence.

• On average, the space utilization per person in

the current residence is 6.5 sq.m./ 69.97 sq.ft..

• The aspirations of people for an improvement to

their house included:

• A 'pucca' house (house constructed with

bricks and cement),

• A house with all basic services and facilities,

• A house in a good location,

• A larger house (1-2-3 rooms),

• A house with a separate room and kitchen,

• Space for children to study, and

• A house with a better social environment that

will contribute to a better future for the

children.

In December 2009, DBS and a Saath team,

along with architectural students Ata ur

Rahman, Areen Attari and Digant Shah,

conducted a Snapshot Study of 100 families to

get a better understanding of the target

population to be served and for whom the

houses have to be designed and built. The

specific objectives of the study were to:

l capture anecdotal portraits of the lives and

lifestyles of the target customers, and

l understand the issues and complexities of

potential DBS customers.

The study was not meant to be a representative

sample of the condition of the urban poor in

Ahmedabad, and was limited to sample

families selected from informal settlements

where water connections and toilets were

provided at the household level (between 1999

and 2007) under Ahmedabad Municipal 4Corporation's Slum Networking Project . These

included settlements where Saath had either

independently or in collaboration with the

Municipal Corporation implemented community

development initiatives such as educational,

health and livelihood Programs and introduced

savings and credit activities. Some women and

young people in the area who had upgraded 3their skills under livelihood Programs (Urmila

3and Umeed ) introduced by Saath had higher

incomes and stable employment.

Thus, the sample families were from Saath 3areas (83) comprised families of Umeed

3trainees (30), Urmila home managers (20) and

Journey of 1000 days, 2009 - 2012


Financial Characteristics of Target Customers

Indicators Characteristics

Age group 19 to 30 30 to 50 Above 50

Income level Less than 3000 3000 to 6000 6000 to 8000 Above 8000

Income consistency Consistent Inconsistent

Consistency of projected income Expected to Increase Expected to Taper off Inconsistent Consistent

Expenditure (as percent of income) More than 90% 70 to 90% 50 to 70% Less than 50%

Savings & Assets Less than 50,000 50,000 to 100,000 100,000 to 500,000 More than 500,000

Desire to upgrade Yes No

Down payment capacity Up to 30,000 Less than 100,000 100,000 to 200,000 More than 200,000

EMI capacity Less than 3000 3000 to 6000 6000 to 9000 More than 9000

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A Few Typologies of Target Customers – Community Development

Indicators Type 1

Occupation Husband–TransportSon – Share broker Husband– casual labour Husband–Transport Wife – House work

Daughter - Tuition

Secondary Occupation No No No No

Education Husband– TY B.Com Husband– Class 12 Husband– Class 10 -Son – TY B.Com Wife – Class 10 Wife –Class 7

Additional Skills Daughter – Tally Software Wife, Daughters - Embroidery No -

Part of SHG No Yes Yes Yes

Desire to upgrade Yes Yes Yes Yes

Type 2 Type 3 Type 4

Wife – Home manager Wife – Stitching Husband– Painting

A Few Typologies of Target Customers - Design

Indicators Type 1

No. of Floors 1 1 2 1

Condition Moderate condition Good condition Good condition Moderate

Materials

• Roof Corrugated Tin Corrugated Tin Corrugated Tin Corrugated Tin

• Wall Brick & Mud Brick & Lime Brick & Lime Brick & Mud

• Floor Cement Kadappa/ Limestone Cement Cement

No. of Rooms 2 + toilet 2 + toilet + bath 2 + Toilet 1

Rooms & Function • Kitchen & Wash • Sleeping & Store • Kitchen, sleeping, storage Multipurpose room• Sleeping, Wash • Kitchen, sleeping • Working, sleeping

Area of house 336 sq. ft. 276 sq. ft. 264 sq. ft. 144 sq. ft.

Area of common 120 sq. ft. 80 sq. ft. 20 sq. ft. 30 sq. ft.

spaces used

Type 2 Type 3 Type 4

Journey of 1000 days, 2009 - 2012


Evolving

the DBS Strategy

complement their way of life. These include:

l A range of small, efficient and liveable housing

options from the smallest “one room and kitchen

unit” to a more spacious “two room and kitchen”

unit, and

l Supportive infrastructure such as community

spaces, work spaces, services such as for

health, education, livelihoods, crèches etc.

Housing Finance AccessThe housing finance model needs to be customised

to the needs and realities of low income households

through features such as flexibility in repayment

terms and periodicity, as well as options for person-

to-person loans. This would include:

l Mapping financial characteristics of potential

customers and matching with financial products

available in the market

l Exploring potential collaborations with micro

finance institutions, and

l Exploring viability of setting up a DBS owned

MFI.

Community DevelopmentCommunity development is a core activity and DBS

is committed to actively support the upward mobility

of customers, that is, enable them in making

economic and social progress through:

l Livelihood development and skills enhancement

interventions,

l Health and Education services, and

l Activities for improving credit worthiness

The snapshot study revealed that just the

construction of affordable houses would not

meet the needs of the families. It was essential

also to support them for related and inter-linked

needs such as for getting access to housing

finance and margin money, and for overall and

gradual improvement in the quality of their lives

through community development initiatives.

The study indicated that a typical DBS

customer:

l Starts with a house she/ he can afford, and

which she/he has bought with a loan that

she/he can repay comfortably;

l With support from DBS’s community

development initiatives, improve skills,

livelihoods and incomes, and repay loan

instalments regularly;

l Purchase a better house with an enhanced

loan, and

l Become a mentor for other families.

By the end of 2009, after the presentation of the

concept and discussions with experts, and the,

snapshot study, DBS formally articulated its

approach for creating a new genre of

community housing.

Design and Production of Community HousingThe aim is to have a new genre of community

housing that incorporates features that serve

the needs of the specific market segment and

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The DBS Business Strategy

The enterprise model and business strategy of

DBS Communities is built on three core areas,

namely, i) Design and production of community

housing; ii) Housing finance for communities,

and iii) Community development initiatives

aimed at catalysing the upward social and

economic mobility of DBS customers.

Business Strategy of DBS Communities

Design & Production of Community

Housing

CommunityHousingFinance

Community Development

Initiatives

Research & Development

Journey of 1000 days, 2009 - 2012


2010: Piloting, Learning and Responding to Needs

Despite the demand and saleability of houses in projects meant for people in the

informal sector, DBS experience reveals that the rate of cancellation and new bookings for

people in the niche segment is about ten times more than in projects meant for the formal

housing market. This is because the financial situation of the customers is fragile and any

unforeseen expense can result in the customer not having adequate funds to pay the

margin-money or the loan instalments. In some cases, the booking is cancelled because the

person lacks proper documents for getting a loan.

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The Design Charette

DBS Communities organised the Community

Housing Design Charette on 9 and 10 January

2010 with the aim of bringing together people

from multiple disciplines and backgrounds to

deliberate on the proposed business strategy of

DBS Communities and to explore in detail the

planning of the first ‘Umang’ project. In the

process, the design Charette was expected to

yield a set of principles and a finalized package

of products and services for the first project of

DBS. The invitees were mostly people known to

the DBS team, including architects, planners,

real estate developers, contractors, bankers,

housing finance institutions, social workers,

academicians, bureaucrats, investors, financial

institutions, NGO representatives, and players

in the real estate industry.

The specific objectives of the Design Charette

were:

1. To present the DBS vision, mission,

objectives, business strategy and proposed

design for the first project - ‘Umang Lambha’;

2. To seek inputs for (a) further refinement of

the business strategy and (b) refining the

plan of Umang Lambha with respect to the

three core elements of the business

strategy;

3. To identify institutional, technical and

financial resources for operationalizing the

business/, and

4. To explore opportunities for collaboration

with various stakeholders/ interested parties

in the industry and those supporting

developmental initiatives, including investors,

housing finance companies, microfinance

companies, philanthropic organizations,

community development organizations, etc.

The Design Charette was organised to include

plenary sessions and group work focused on

review, discussion, and refinement of the proposals.

The presentations and discussions covered the

three elements of the DBS business strategy and

the cross-cutting or overarching issues.

1. Community Housing Design,

2. Community Housing Finance,

3. Community Development, and

4. Integration, synthesis and communication.

On the first day, the DBS Team presented the

preliminary proposals and preparatory work

covering the Core Team's understanding of housing

affordability, the socio-economic characteristics of

potential customers and the spatial quality of their

surroundings as identified through the snapshot

study. In addition, Mr. Vishnu Swaminathan from

Journey of 1000 days, 2009 - 2012


Ashoka gave a presentation on the deficit of

housing finance and housing facilities in various

urban areas in the country. A presentation on

community housing finance highlighted options

for making finance accessible to people at the

base of the socio-economic pyramid. The DBS

Team also presented the conceptual design of

Umang Lambha.

The enterprise model and business strategy of

DBS Communities was validated by participants

of the Design Charette. Further the core area

activities were elaborated as follows:

Design and Production of Community

Housing: To develop a range of house types

from one to three (now two) room apartments in

liveable community environments with

community work spaces, crèches, clinics and

community resource centres.

Community Housing Finance: To evolve and

offer innovative and customized housing finance

solutions, including carefully mediated Person-

to-Person loans and flexible repayment

schedules like Equated Daily/ Weekly/ Monthly

Instalments.

Community Development Initiatives: The DBS/

Saath social workers to partner with DBS

customers for creating alternative livelihood

opportunities, enhancing skills, securing health

and education services, and building a credible

financial track record.

esign uild erve


On the second day, the DBS core team

discussed the significant insights and feedback

from the Design Charette, which bolstered their

confidence in their approach and work.

Journey of 1000 days, 2009 - 2012


Issues addressed during

the Design Charette

Community Housing Finance

1. One of the main approaches being explored for

facilitating access to finance involves the

creation of an interface between our customers

and housing finance companies. This interface

will use mechanisms like establishing identity

and income proofs, compulsory banking

behaviour, group guarantees, etc. to create

comfort level on both sides in the lending

process. The two issues explored in this context

were:

a) How can we persuade the mainstream banking

system to accept the due processes that we

create as equivalent to mainstream

documentation and reduce the perceived risk

level of our customers?

b) How can community development agencies be

equipped to take on the task of implementing the

critical interventions like compulsory banking

behaviour?

2. What is the additional cost of creating an

effective interface? What are the avenues for

funding this additional cost, may be through

philanthropic or government intervention?

3. What form of ownership document will be

appropriate in the lending conditions that we will

encounter? Should it be freehold title to be

mortgaged or some form of Hire Purchase?

4. How can we create a procedure to mainstream

our customers and hand over their loan

portfolios to mainstream companies?

5. Are there any policy measures that are being

formulated by the Government that will help

us develop this business

6. Who - people or organizations – can help us

in our endeavour?

7. What should be the form of the Community

Housing Finance division of DBS? Should it

be a separate legal entity? What will be the

legal/ corporate linkage between the CHF

division and the parent company? Are there

any conflict of interest issues?

8. How can we adapt traditional models of

lending and develop person-to-person type

of financing mechanisms?

9. What are the subject areas related to

community housing finance where research

is required urgently?

Community Development Initiatives

1. What should be the functional scope of the

CDI? What sectors should it cover?

2. Should this initiative take the form of a

community services provider or that of a

philanthropic change-maker organization, or

a bit of both?

3. How much will be the cost to run this kind of

an intervention?

4. How should this activity be funded? Should it

be free standing and self-sustaining? Is it ok

for the CDI to be part-funded by the real

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estate business and the housing finance

business?

5. Should we seek external philanthropic input?

What are the potential sources?

6. What should be the form of the Community

Development Initiative? Should it be a

separate legal entity? If yes, should it be for-

profit or not-for-profit?

7. What sort of local entity – a community

based organization (CBO) – can be created

in each project? What can be the scope of

this entity? What sort of a capacity building

program can be established to create and

sustain these entities?

8. What are the subject areas related to

community development initiatives where

research is required urgently?

Community Housing Design

1. What are the different ways in which

effective, usable community spaces be

created in high density apartment

complexes?

2. To what extent can we load the cost of

community facilities on the home buyer? Can

philanthropic funding offset some of this

cost? What are the sources for such

funding?

3. What specific features need to be

incorporated in the design to cater to the

specific needs of our customers? – at the

individual flat level, at block or cluster level,

at the overall project level?

4. What special privileges can be secured in the

regulatory regime for enabling community

housing design?

5. What features of design and specification can

substantially reduce the operation and

maintenance costs of the buildings?

6. Is it possible to accommodate incremental

investment possibilities?

7. What are the subject areas related to community

housing design where research is required

urgently?

Cross cutting issues

1. At a corporate management level how can we

strike a balance between the three divisions,

giving each the space to function autonomously

and still achieve synergy between them?

2. What sort of partnerships can be created to

make this business model a success? Should

they be project specific or organizational or

both?

3. What should be the nature and mode of

communication to our customers?

4. What can we do in the corporate governance of

DBS Affordable Home Strategy Ltd. to help us

approach any agency at national and

international level for support in fulfilling our

objectives?

5. What can we do to attract investors, land owners

and other key industry players to do business

with us on terms that help our customers?

Journey of 1000 days, 2009 - 2012


From the commercial perspective of a developer, the construction and sale of a

scheme should be completed as quickly as possible so that he can move on to another

scheme. He cannot be casual or charitable because he is constructing affordable

housing.

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DBS Pilot Project

- Umang Lambha, Ahmedabad

Umang Lambha – the first project under the

DBS Communities banner was launched in

association with Saath Charitable Trust on 2

May 2010 in the Vatwa area of Ahmedabad.

One of the primary requirements was to achieve

maximum ground coverage while minimising

the circulation area and the development costs

to be borne by apartment owners.

Considering the vision and long-term objectives

of DBS Communities, architects – Vineet and

Anjum decided on a step-by-step design

approach rather than immediately aim for the

maximum/ permitted ground coverage. They

experimented with linear plans where

apartments were organised along well-lit and

ventilated corridors while minimising circulation

space. They finalised plans for three types of

apartments –1 Room with Kitchen (1RK), 2

Rooms with Kitchen (2RK) and 3 Rooms with

Kitchen (3RK) priced from Rs.3,50,000 to

Rs.8,50,000. The initial layout was changed

from a linear layout where only 35 percent

ground coverage was achieved to a cluster plan

which led to 45 percent ground coverage. The

apartment designs and cluster plans were

further refined based on the inputs and 5feedback received from the Design Charette .

Further, considering the requirements of

potential customers, mixed use was planned

with allocation of spaces for small shops at

different levels of the apartment blocks.

However, this raised legal issues such as

whether the shops would be considered

commercial or residential property, and whether

commercial by-laws would be applicable.

Journey of 1000 days, 2009 - 2012


2 Room Kitchen UNIT

1 Room Kitchen UNIT

The approved plans and designs of the

apartments require minimal changes to

individual units depending on their location

within a cluster. The cluster plans, with a

maximum of 24 apartments per floor, provide

interesting public spaces while utilizing the built

and semi-covered areas optimally. The open

space around the apartment blocks and the unit

layouts are expected to ensure good daylight

and ventilation.

Community use spaces are provided for Urban 2Resource Centres (URC), a primary health

centre, a credit society office, a centre for

women's development activities, a reading

room, a community hall, and a pre-school/

crèche etc. The aim is to locate community

development activities and livelihood programs

within the project area and actively support

interventions that enhance incomes of the

families. The Project also houses a make-shift

school run by Saath for children of construction

workers.

The common infrastructure includes bore wells,

underground water reservoir and overhead

tanks in each block for 24-hours water-supply,

paved roads, street lights, compound wall, and

open spaces/ gardens. Arrangements have

been made for on-site recycling of sewerage.

The recycled water will be utilised for the green

areas/ landscaping.

The layouts were further modified considering the

General Development Control Regulations of

Ahmedabad Urban Development Authority that: i)

restrict maximum building length of 50 meters; ii)

require a gap of 4.5 meters between building blocks

of 50 meters length; and iii) require calculation of

open courtyards as built-area if there is no through

road. In addition, changes had to be made to meet

Ahmedabad Municipal Corporation building by-laws

and the fire regulations.

esign uild erve


Journey of 1000 days, 2009 - 2012


Original Site Layout Plan, Umang Lambha

Final Site Layout Plan, Umang Lambha

Project Launch

DBS Communities wanted to ensure that the

potential customers were informed about the launch

of Umang Lambha. It therefore used various

marketing methods for greater outreach. Besides

newspaper advertisements, brochures and flyers,

Saath informed its members through word of mouth

and road shows. Radio spots were on from 1 May

2010, large hoardings were put up at prominent

places, and ample signage was put up to guide

people to the site. In addition, free transport was

arranged from the nearest road junctions (Asalali

and Narol), and a discounted rate was announced

for the first phase of booking.

DBS ensured that while publicising the Umang

Lambha scheme and the launch, the emphasis on

the scheme not being for investors was obvious.

This was because the DBS team was aware that in

a large proportion of affordable housing schemes in

the country, people from higher income groups buy

off the apartments for investment.

A large launch pavilion was erected at the site with

three large spaces and smaller support areas. The

first large area at the entrance had a set of large

panels and a model of the entire project area where

the project and the concept were explained.

Connected to this space were full scale models of

two types of apartments, that is, the one room and

kitchen unit, and the two room and kitchen unit.

Two booking areas – one for people requiring

assistance and the second for people not requiring

assistance, were connected to the space with

the full-scale models. This was done to prevent

purchase of a large number of apartments by

speculative buyers – a likely scenario based on

experiences of other low-cost housing projects

implemented in Ahmedabad and Mumbai.

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Interested buyers were led to one of these

booking areas as appropriate. The first booking

area was for people who needed financial

assistance and general handholding. On 1 and

2 May, a Saath team assisted families coming

to this area to understand the scheme and

options on offer. They briefed customers

regarding the details of houses, answered their

various queries and ensured that the visitors

decision to purchase a house met their needs,

and was appropriate for them. The second

booking area was for people who did not need

any assistance, and were therefore directly

assisted by DBS staff. Housing finance

companies like Mahindra Housing Finance,

Micro Housing Finance Corporation (MHFC),

GRUH Finance and Dewan Housing Finance

Corporation Ltd. were provided desks in

between the two areas.

Customer Response

The response to the project launch was

overwhelming. At the end of the day, an estimated

5000 visitors had passed through the pavilion. Of

Arrangements at the Launch of Umang Projects

• Ensure that she/he gose to the right place

• Directions and Guidance

• Name and contact (alternative contact)

• PARESH and ROSHAN

Table 1Registration desk

• Counseling - that is filling up the URC questionnaire

• DHRUV and DEVUBEN

Tables 2 and 3Counseling

• Assessments - Sanctions

• MHFC Team and DIVYANG

Tables 4, 5 and 6MHFC

• Record how much loan has been approved by bank

• How much more does she/he need

• NIRAJ and CHINMAYIBEN

Table 7Down payment’s assessment

and record of the loan process

Person enters the hall

Mandap Layout

Journey of 1000 days, 2009 - 2012


Layout of Launch Pavillion at Umang Lambha

these, about 70 percent were from the target group.

About 220 apartments were booked (20 percent of

the apartments in Phase I, which was opened for

booking). About 50 percent of the families that

booked apartments on the same day had come to

the launch through Saath. Of these, about 50

families that had not come prepared for making the

booking/ down payment, came the next day to

complete the booking process. By the end of the

launch process, DBS ended up having a waiting list

of about 800 potential customers.

Looking at the overwhelming response in the

context of the weather, the slushy approach roads

and the “inauspicious” month of the Hindu lunar 6calendar (Kamurta ), the demand for affordable

housing was confirmed. For the DBS Team, this

reinforced the appropriateness of its business

strategy and approach.

DBS also found that while its target group aspired

for a house with two rooms and a kitchen many

could afford only a one-room and kitchen unit.

Further, many potential buyers have difficulty in

arranging the down payment or 'margin' money

(which is usually 30 percent of the price of the

apartment) in one instalment. DBS also realised

that if house bookings were invited in the open

market, it was likely that all apartments would be

sold - indicating a strong investor interest in the

affordable segment.

esign uild erve


Ashoka at the site of Umang Lambha

Ashoka Innovators for the Public, founded in 1980, has over time focused on launching leading social

entrepreneurs and offered a range of programs and initiatives to deal with changing needs. More recently,

Ashoka is working to ensure that social entrepreneurs and their innovations continue to inspire a new

generation of change makers to create positive social change.

In Ahmedabad, Ashoka Foundation was in contact with Rajendra Joshi - an Ashoka Fellow who was

contributing to the development of its “Housing for All” (HFA) initiative financed in partnership with the Hilti

Foundation. Under this initiative, Ashoka contributes to cooperation among community organizations, land

developers and banking institutions to create affordable housing conditions for the poor. In this context,

representatives of Ashoka Foundation and Hilti Foundation had met Rajendra and visited Saath. Subsequently,

after Rajendra briefed them about his and Saath's involvement with DBS Communities for building affordable

housing, Hilti Foundation and Ashoka provided strategic support for the launch of the Umang Lambha.

Launch Publicity

Journey of 1000 days, 2009 - 2012


Lessons from the launch of

Umang Lambha

DBS Communities, Saath, Micro Housing Finance

Corporation Ltd (MHFC) and others had the

opportunity to observe and learn from the activities

and issues identified before and during the launch

of Umang Lambha. These can be categorised in

terms of:

l Planning and design issues;

l Launch management, and

l Housing Finance, and

l Customers and visitors

Planning and DesignThe pilot project, because of its scale and location,

provided several site-planning and development

challenges. First, in its desire to initiate a pilot

quickly, DBS had not paid adequate attention to the

plot’s ground conditions and it had expected to get

clarifications regarding the land-use shortly. Despite

assurances from the Town Planning Department,

DBS faced the following situations:

l Initially, the TP Scheme of the area showed an

18 meters wide road going through the site.

Later, AMC clarified that there was no road

passing through the site.

l 20 percent of the site was earmarked for

institutional use but it was not clear whether this

was as a single block or spread-out across the

site as smaller plots.

l After the launch of the project, DBS found that

part of the area where construction was started

was earmarked as an institutional area.

Thus, construction on that part was halted,

resulting in development of lesser apartment

blocks on the site.

l A corner of the site was encroached upon.

This led to the decision of not building on

that part of the plot.

The changing situations led to alterations in the

layout plan a number of times, and finally after

due regulatory permissions were received, the

construction works for Umang Lambha formally

commenced in August, 2010. However, after

construction work was started, the foundation

design had to be modified to a raft-foundation

because of high ground water-level. In addition,

DBS found that contractors were not willing to

continue with the project. Queries revealed that

the contractors had found the requirements and

cost for scaffolding higher than envisaged

because of the high density of columns and

beams.

Thereafter, the DBS Design Team was further

expanded with engineering and other support

function staff, and prominent structural and

services consultants were roped in to assist the

in-house Design Team.

Launch managementA critical issue identified at this early stage was

that the key people (Saath staff and others) who

interacted with potential customers at the site

were inundated with queries, such as:

esign uild erve


I) The differential pricing of houses with

access to terrace and garden space;

ii) The stepwise process for booking of

houses;

iii) Meaning and implications of non-

agricultural plot (NA) and No Objection

Certificate (NOC);

iv) The loan papers to be made available by

the builders;

v) Rationale and method for charging floor

premium;

vi) Area to be deducted from the super built-

up area;

vii) Charges for “Dastavej/ Sale Deeds of

properties and electricity connection”. In

this context, visitors were particularly

interested in knowing which of the two

electricity companies in Ahmedabad would

be supplying power to the project;

viii) The details of construction and finishing

materials (RCC, finishings etc.), and

ix) The DBS Affordable Housing financing

options.

Customers and visitorsThe door to door marketing of the project was

innovative, and this influenced the number of

visitors to the launch. Queries on how people

heard about the launch of the scheme showed

that word-of-mouth was the most frequent,

followed by radio spots and newspaper

advertisements.

The need for a lot of handholding of customers was

identified. Therefore a team of 4 to 5 persons were

following-up with customers interested/ booking

apartments in Umang Lambha. Subsequently, DBS

decided on outsourcing the task of loan facilitation

in the future.

Customer follow-up included several critical housing

loan related issues, such as convincing potential

customers that taking larger loans was not good for

them and that they should take a minimal loan. In

addition, since many clients came with the

expectation that some financial benefit or subsidies

would be available for a scheme meant for low-

income groups, they had to be informed that DBS

Communities and Saath were not providing any

discount on price, rate of interest on loan or

financial assistance to the buyers of apartments in

Umang Lambha.

Based on the experiences and observations at the

Umang Lambha launch, DBS Communities, Saath

and MHFC decided to organise a Credit Camp, a

platform where potential Lambha customers could

have detailed interaction with housing finance

companies. It also led to the identification of the

need for long term actions in the area of financial

awareness and capacity building and of a housing

facilitation centre.

Journey of 1000 days, 2009 - 2012


One of the significant lessons learnt after the

launch of the pilot project was the challenges of

maintaining a cash-flow when commitments for

purchase of a house by people whom DBS is

catering to are very fragile.

The DBS observation is that the rate of

cancellation and new bookings for people in the

niche segment is about ten times more than in

projects meant for the formal housing market

DBS therefore decided that while the demand

was confirmed, it would be prudent at this stage

to cater to customers who had already shown

interest at the Umang Lambha site. DBS

therefore decided on a simple launch of its next

project where only 'waitlisted' people were

invited.

Housing FinanceThe key lessons from the Umang Lambha project

that were deliberated while considering options for

the new projects were related to finance.

DBS found that the purchase of land with borrowed

money was not a cost-effective solution.To have

greater outreach to the market and for leveraging

capital investment in the land, the management

decided to launch projects with the land owner as a

project partner. DBS therefore approached people

who owned land that had yet to be developed, and

offered to develop the land-parcel specifically for

affordable housing on a profit-sharing basis, and

received a good response to this offer.

DBS realized that housing finance is not reaching

this segment because of the regulatory

environment, the associated risks and the

vulnerability of the customers. Further, there is a

need to assess potential customers in terms of their

capacity and affordability, and provide handholding

support in terms of taking bookings, connecting the

customers to the appropriate housing finance

institution, getting the correct documents,

supporting the application process, and submitting

requests to the housing finance institutions for

release of loan at different stages. This required

continuous and intensive interaction with the

customers. Besides the facilitating support provided

by Griha Pravesh, the Team decided that it was

more appropriate to outsource this task. DBS has

selected an agency for this for its new projects.

esign uild erve


Credit Camps

After the successful launch of Umang Lambha

the DBS team and Saath received several

queries from potential customers about getting

loans. DBS found that although Mahindra

Home Finance, Micro Housing Finance

Corporation Ltd (MHFC), GRUH Finance, and

Dewan Housing Finance Corporation Ltd

(DHFL) had stalls at the launch, people could

not have detailed discussions with the finance

companies because of the large crowd. Further,

based on an analysis of a database of

applicants created after the launch, and

feedback received through Saath, it was

obvious that the large number of people from

the informal sector would have difficulties in

getting loans from scheduled banks because

they would not have monthly pay slips.

DBS Communities therefore identified the need

for a platform where potential customers could

have detailed interaction with housing finance

companies. The main requirements were for

people to know the available options for

procuring loans, their affordability, and the loan

process – especially the requirements for

documents. This led to a decision to organise a

Credit Camp where such interaction can

happen.

The first Credit Camp was a joint initiative of

DBS, Saath and MHFC to understand the

financial positions of the clients better by

interacting with them and by collecting the

required documents for loan processing. A few

people from Monitor Group (India) came along

with MHFC executives to understand the on-going

efforts of DBS Communities and Saath, and of

people's response to the camp.

The first Credit Camp was organized on 5 and 6 3June 2010 at the Umeed Centre (Umeed is a

livelihood program run by Saath) near Behrampura

Post Office - a central and easily accessible location

convenient for most people. The Camp was

organised specifically for customers who had

booked apartments in Umang Lambha, and for

those whose bookings were cancelled or cheques

were returned.

To ensure active participation, the customers were

sent letters in Gujarati informing them about the

time, date, and location of the credit camp as well

as a list of documents that they should bring with

them for loan processing. About 150 customers

turned up for the credit camp.

A two-part questionnaire for getting essential

information about the customers was prepared by

Journey of 1000 days, 2009 - 2012


Saath and MHFC in consultation with each other. At

the camp, representatives of Saath and MHFC

filled-in the forms with information given by the

clients. Subsequently, executives from MHFC had a

20-30 minutes discussion with each client. They

even counselled and convinced a few of them to

settle for a smaller house and loan amount due to

their income limitations or lack of documents.

At the end of the Credit Camp, almost all families

were found to be eligible for a housing loan, and

most loan-applicants were given preliminary

approvals. However, in many cases, there was a

gap between aspiration and affordability. It also

emerged that some customers would need

additional support for mobilizing the down payment.

In total, of about 150 people who participated in the

camp, 75 came with proper documents.

The experience of the credit camp revealed the

extent of support required by potential customers

and the need for an active facilitation process. This

soon led to a decision for setting-up a housing

facilitation unit called Griha Pravesh, and the

decision to organise Credit Camps on Day 1 of the

launch of future Umang projects.

esign uild erve


7Observation about the Credit Camp

On 5 June – day 1 of the Credit Camp, Saath’s Micro Finance Institution was hosting its Annual General

Meeting at the same venue. Therefore, when the meeting ended, a mass of inquisitive people crowded at the

registration and information desk. There were floods of enquiry on the type and cost of housing and a

possibility of getting a loan. We requested them to come to the construction site and see the full scale model

and also had to restrict them from interacting with the executives from MHFC so that the purpose of the credit

camp remains intact.

It was enthralling to hear the client’s background, stories and dreams of having a house of their own. Stories

of success and sorrow ranging from a technician who rose to have his own enterprise to a mother who lost a

young son in an accident quite recently and was determined to buy the apartment her son had dreamed of.

The clients were filled with determination, anxiety and one could see a twinkle in their eyes during the

interaction, which seemed impossible to shake their confidence and let them go dejected. We expect the

booking bells to continue ringing once the loans gets sanctioned as many other potential clients from the

target group would follow their friends and seek loans through MHFC.

We learnt about our clients and the motivation they possess to move up the social and economic ladder. We

understood that we need to prepare two questionnaires; the preliminary one will determine their eligibility for

loans and also involve counselling which will be done by Saath and the detailed questionnaire will be used by

the MHFC for an in-depth understanding of the client’s financial position and scrutinizing the documents. We

intend to host some more credit camps every fortnightly for the benefit of our clients in near future. Out of the

75 people who brought their documents, 63 people have got a principal approval out of which 13 loans are

sanctioned already.

Journey of 1000 days, 2009 - 2012


esign uild erve


Griha Pravesh Operation and Seminar Photos

Housing Facilitation Centre:

Griha Pravesh

The need for a housing facilitation centre

evolved with the realization that the customers

felt harassed and neglected because they

faced problems in getting responses to queries

about the project or finances. DBS realised that

the end-user and customers require support in

getting all information regarding affordable

housing projects, housing finance and on the

proposed community development activities.

DBS realised that if a single-window facilitation

centre was created, potential customers,

especially the illiterate and semi-literate, would

not have to visit various organizations/ people. It

would contribute to DBS efforts for establishing

a sustainable model of housing provision by

pulling together the strengths and experience of

DBS in the real estate space and of Saath in the

social inclusion space. The facility would initially

result in improved efficiency, and over time

become a larger and independent entity. Such a

centre would require a team of experts with

current information on the various aspects to

assist the clients.

DBS, Saath and MHFC principally agreed to

have a not-for-profit Section 25 Company under

the Companies Act 1956 as a housing

facilitation centre. In 2010, Saath and DBS

Communities set-up a housing facilitation

centre, called Griha Pravesh, which will provide

an interface between potential home buyers

from the informal sector who earn between

Rs.10,000 to Rs.25,000 (in 2010), and

developers, housing finance companies and

community development organizations.

Griha Pravesh aims to make it easier for people to

own a house by:

1. Gathering and disseminating information about

'affordable housing projects' to assist potential

clients make informed decisions about

purchasing their house;

2. Facilitating access to housing finance and

support for margin money, and

3. Facilitating integration of community

development initiatives with housing.

The target group includes people for whom

Journey of 1000 days, 2009 - 2012


We expect to continue the process of

learning and responding to new lessons

and insights as we work towards

achieving scale and volume, and thereby

impact not only the lives of those who

purchase houses built by DBS

Communities but also those who want to

cater to the niche market at the bottom

of the socio-economic pyramid.

understanding the housing/ housing finance market

may be difficult because of the complexity of

paperwork, legal formalities and compliance

requirements involved in purchasing a property. It

may include people whose decision to purchase a

house is affected by factors such as lack of

information about affordable homes and non-

availability of suitable housing finance, knowledge

about access to health and education services and

employment opportunities in an unfamiliar location.

The interface with potential affordable housing and

existing DBS customers will be through Parivaar

Pragati Seminars that will be organised for

information dissemination and support as required.

To ensure that only those seriously interested in

purchasing a house participate in the Seminars,

participants are required to register as Griha

Pravesh members. The benefits of becoming

members of Griha Pravesh are:

i) The members are informed about the reasons

and benefits of asset creation, financial planning

and banking, housing finance processes and

related requirements documentation, etc.,

ii) Opportunities available to the members for skill

enhancement to enhance their incomes, and

iii) Introduction to services/ products such as

savings, loans, insurance, livelihood

enhancement, etc., for enhancing upward

socio-economic mobility.

Griha Pravesh Operational

model

Griha Pravesh has been set-up under the

umbrella of Saath's Shelter and Livelihood

Services (formerly Saath Livelihood Services

which was incorporated as a 'Section 25'

company in 2007), an existing livelihood

promotion platform to enable it to develop

synergies with on-going community

development initiatives. The Griha Pravesh

office has temporarily been established at the

Saath office, with two people dedicating 50

percent of their working time to its activities.

Initially supported by DBS and Saath, Griha

Pravesh will eventually become an autonomous

initiative that will collaborate with different

associate organizations, and replicate its

facilitation model in other parts of the country.

While partner associates in different cities may

vary, Griha Pravesh's core mandate of providing

esign uild erve


affordable housing to the poor will remain

unchanged. To ensure this, each new

organisation/ institution wishing to become a

member of Griha Pravesh will have to be

approved by the founding members.

Envisaged as a pan-India initiative, Griha

Pravesh will adopt a flexible approach as far as

the operational model for providing facilitation

services is concerned. Therefore, while a central

office will be common in every city, different

outreach strategies could be adopted for

reaching out to potential clients. These may

include field offices or mobile services

operating directly in target communities.

Griha Pravesh is being set up with a Board of

Directors drawn from the Saath and DBS teams

supplemented by independent Directors. A

professional team, consisting of people with

experience in community services, housing

finance and housing development, is being put

together. Eventually the Board of Directors will

be an independent body overseeing and

guiding the professional team.

Initial funding is being mobilized by DBS and

Saath. The first three years of operation is

estimated to cost about Rs.2,00,00,000 (two

crores). Griha Pravesh is open to receiving

funding from like-minded donors wishing to

support the cause of affordable housing. As a

not-for-profit company, individuals and other

entities can contribute in the following ways:

I) Sponsor a Parivaar Pragati Seminar – Rs.30,000

per event

ii) Support 5 families towards home ownership –

Rs.50,000 (over a 2 year period)

iii) Support the running of a community centre for 3

months – Rs.1,00,000

iv) Support the establishment of a new community

centre – Rs.3,00,000

v) Support the preparation of communication

videos – Rs.2,00,000

Partnership opportunities are also available for

those organizations that contribute directly to

upward socio-economic mobility of DBS

Communities' customers either through their

products or services.

Information on Affordable

Housing projects

Griha Pravesh will assist potential clients in making

a choice of a housing unit based on their budget

and affordability by providing information on:

l Affordable housing projects in the city;

l Housing site location and connectivity;

l Internal layout, unit type and size options

available;

l Housing terminology such as built-up area, super

built-up area, shared collective responsibility,

maintenance fund for common areas etc.;

l Basic prices of housing units together with

Journey of 1000 days, 2009 - 2012


additional costs which the client is expected to

pay, including registration fee, stamp duty, legal

fee, utility charges etc., and the total cost price of

the individual housing units;

l Schedule of payments, and

l Expected time of possession.

Housing finance assistanceGriha Pravesh will facilitate smooth and speedy

provision of housing finance to the client by

providing information on:

l Maximum loan available as a percentage of cost

of property;

l Amount to be paid as margin money;

l Income and eligibility criteria for loan;

l Age criteria for loan applicants;

l Financial implications of their decision to

purchase a particular house, including how

household cash flows will be affected;

l Loan interest rate and maximum tenure for which

loan is available;

l Loan application fee and processing fee;

l Documents required for loan processing –

identity, address and income proof;

l Loan terms and conditions – co-applicant

requirements, mode of repayment (post-dated

cheques, ECS) etc., and

l Detailed information and handholding in the loan

process.

Griha Pravesh will also explore options for securing

margin money assistance for those clients who

are not in a position to make the down-payment

for the house.

Research & developmentGriha Pravesh can be effective in achieving its

basic objectives only if it continuously updates

information about low-cost housing projects etc.

and tracks the outcomes of decisions made by

Griha Pravesh members based on the support it

provided. Therefore, Griha Pravesh will actively

collaborate with ASHRAM (Academy for

Sustainable Habitat Research and

Management) for undertaking research and

development activities, including training and

policy advocacy. In addition, Griha Pravesh will

collaborate with other institutions with similar

areas of interest.

Community services

Griha Pravesh will ensure embedding of

community development interventions by

actively facilitating an interface between clients

and community service organizations for

providing primary health care, education,

livelihood, vocational training and microfinance

services and in getting essential identity and

income documents.

Griha Pravesh will provide an end to end

solution for affordable housing by creating a

database of potential clients, and by inviting

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various high net-worth individuals (HNIs),

corporates, builders and real estate players

working in the affordable housing market, and

financiers lending to the informal segment to be

a part of the organization and to donate

generously. It will also help genuine clients for

bridging the margin money shortfall, helping the

clients improve their livelihood means by the

various community development initiatives,

documenting the clients progress and

developing relations with MFIs, NGOs, financial

institutions and affordable housing players all

around the country.

Another key activity that will support the

effective functioning of Griha Pravesh is the on-

going staff training program comprising three

levels of training modules. The focus of the

training is on familiarisation with the objectives

and processes of Griha Pravesh, the housing

finance options and making the right match for

the customers, the objective, scope and details

of the community development initiatives, and

finally functional skills.

DBS Communities and Saath aim to reach

within ten years, more than 10,00,000 urban

customers across more than seven States in

India, and by 2014/15, have 5,000 Griha

Pravesh members through its six centres in

Ahmedabad and other cities of India.

Journey of 1000 days, 2009 - 2012


DBS understands that a sustainable

venture can be achieved through

continuous endeavour and by fostering

positive collaborations. It therefore

intends to enter into partnerships with

investors, reputed construction

companies and land owners.

Parivaar Pragati SeminarsAs part of its assistance for housing finance and

margin money, Griha Pravesh has been organising

Parivaar Pragati Seminars. The participants are

required to register as Griha Pravesh members. The

DBS Team found that when the fee was Rs.100 for

the first seminar, many persons who were not

seriously interested in purchasing a house in the

near future also became members. Consequently,

the registration fee was increased to Rs.350 from

the second seminar.

Griha Pravesh has organised three Seminars on the

‘Need for Financial Planning and Asset Creation’.

The first Seminar was held in Behrampura on 3

September 2011, the second was held in

Bapunagar on 24 September 2011, the third

Seminar was organised in Meghaninagar on 26

November 2011. The participants of all the

Seminars were taken through a process of

visioning, current financial status assessment as

well as steps for securing the future. The Seminar

sessions were interactive as well as informative with

people from diverse backgrounds sharing their

thoughts with great enthusiasm.

About 66 participants registered as members of

Griha Pravesh at the end of the first Seminar

and 44 at the second event. Based on a

diagnostic assessment, each family will be

counselled on savings and banking, preparation

of documents, home loans, skill enhancement,

insurance and various other services.

Since Griha Pravesh is functioning as a market

development catalyst, it is already inviting and

working with other developers in Ahmedabad. It

organised a Seminar sponsored by Foliage Real

Estate Developers Pvt. Ltd. on 24 March 2012 at

Isanpur. The objective of this Seminar was to

market Foliage's Garetpur housing project.

Thus, more than one HFI and developer are

now involved in Griha Pravesh. Now more HFIs

and Developers are involved in Griha Pravesh.

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Sammelan 1

3 September 2011

Financial Planning and Asset Creation

Behrampura

170

25

Small businesses

• Rajendra Joshi • Niraj Jani

• Dharmesh Kansara from Muthoot Finance

Empower Pragati Saath Muthoot Finance

Self-Help exercises and Seminar

Rs.100

66

Sammelan 2

24 September, 2011


Bapunagar

450

22

Daily wagers

• Niraj Jani • Manish Pancholi

• Madhuben Parmar,

• Dharmesh Kansara

from Muthoot Finance

Empower Pragati, Saath & Saath MFI DBS Muthoot Finance DBS

Self-Help exercises and Seminar

Rs.350

44

Sammelan 3

26 November 2011


Municipal hall at Meghaninagar

250

24

Government employees

• Parul Prajapati

• Jayesh Shah, MHFC • Akshay, from

Foliage Real Estate Developers Pvt. Ltd.

Empower Pragati Saath Muthoot Finance

Audio-Visual Presentation

Rs.350

NA

Sammelan 4

24 March 2012

Market Foliage’s Garetpur housing project

Panethar Hall, Isanpur

NA

NA

Mixed group

• Fareed from Foliage • Dharmesh Kansara from Muthoot Finance

Foliage Real Estate Developers Pvt. Ltd.

Audio-Visual Presentation

Rs.350

NA

Date

Theme

Venue

No, of people attending

Numbers of chawls visited for publicising Sammelan

Occupational Profile of people in chawls visited

Key Speakers

Key Sponsors’

Method of communicating knowledge

Registration fees

Number of people registering as Griha Pravesh Members

Comparing the Parivaar Pragati Sammelans / Seminars

Journey of 1000 days, 2009 - 2012


Type of support required

Example

Customer is unable to pay 30 percent margin as required due to damage

of tobacco crop in his place of origin. However, he can pay it in around two

to four months and retain the booked flat. If given a week's time, he could

discuss the options with his family in the village.

An auto-driver could pay the margin money in about three to four months'

time. In the absence of any option, decided to cancel the booking for an

apartment.

A tailor did not have the required margin money and would have opted out

of purchasing an apartment if informed about his ineligibility for getting a

loan through the facilitators.

Problem

Not having Margin

Money at the time

required

Not aware of possibility/

option for getting a loan

Source: from Griha Pravesh Overview presentation

1

2

3

4

5

6

7

8

9

10

11 GRIHA PRAVESH

Home Registration & Stamp Duty

Loan Sanction Letter

Application for Loan

Selection of Home

Saving of Margin Money

Connect to Community Development programs

Guidance based on Diagnostic Report

Address and KYC Verification

Detailed Survey of the Customer

Customer becomes a Member

Griha Pravesh Stages of Customer Interaction

esign uild erve


DisseminationCampaigns

EngagedFacilitation

• Asset creation

• Documentation

• Financial literacy

• Skill upgrading, education

and health

• Home maintenance

House selection to filling-upsubmission and registration

of documents

Source: from Griha Pravesh Overview presentation

Griha Pravesh Functions

Journey of 1000 days, 2009 - 2012


The Full Economic Citizenship (FEC) Program of

Ashoka Innovators for the Public and the Hilti

Foundation under their 'Housing for All' initiative

organized a Global Summit on Housing

Entrepreneurs in Barcelona from 30 November to 1

December 2011. The participants from more than 8

different countries included business, finance and

citizen leaders who were working in the affordable

housing sector.

Rajendra Joshi, B R Balachandran and Sowmya

Haran participated in this conference and shared

the DBS model for holistic community development

through housing. This was greatly appreciated and

the directors of DBS where able to contribute useful

insights to every seminar in the conference. Various

aspects of provision of affordable housing from

finance to construction technology were discussed.

A draft set of recommendations were circulated

before the conference and discussed during the

deliberations.

The directors of DBS are also contributing voluntary

time to other activities of Ashoka such as the Portal

for Collaboration of Affordable Housing

Stakeholders Certification System for Affordable

Housing.

DBS at the Global Summit of Housing Entrepreneurs

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DBS Communities has focussed on building up a high quality professional team committed to developing an

effective enterprise model for delivery of affordable houses. During 2010, the DBS Team gradually expanded

to include practitioners who represent different sectors and specialisms. This included the DBS management

and finance teams which were strengthened with Mr. Manish Pancholi - the then Chief Executive Officer and

Mr. Sudarshan Iyengar - the then Vice-President (Finance) joining in May 2010 and October 2010 respectively.

Core Team Expansion

Journey of 1000 days, 2009 - 2012


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2011:Progress and Learning

Looking to the tremendous response

received from the market with the launch

of Umang Lambha, the Team decided to

start another project in the same lines. The

experience with the Umang Lambha

project greatly influenced the DBS

approach for the next project – Umang

Narol.

Journey of 1000 days, 2009 - 2012


Umang Narol

DBS Communities identified a land parcel of 3.4

acres in Narol, less than 3 km from the Umang

Lambha site, and the second DBS Communities

project in Ahmedabad was launched on 6 March

2011 in partnership with RJD Buildcon. The site is

easily accessible from the Lambha - Narol Highway

(NH8), and is @ 2 kilometres distance from public

amenities such as the BRTS services. The site has

a total of 8 blocks with RCC frame construction and

five floors above parking on the ground floor. Of the

885 units (360 units of 1 room-kitchen and 525 units

of 2 rooms-kitchen) to be built on the site, bookings

were opened for 450 units at the time of the project

launch. The response was again tremendous with

96 percent of the apartments booked within 2

weeks.

The project includes pucca roads, street light, own

bore well, garden, and spaces allocated for an

Urban Resource Centre, health centre, community

hall and micro-finance activities. Prices start from

Rs.3,99,000.

Based on the experience of Umang Lambha, the

apartment and cluster design is simpler, with the

ground floor space retained for community use,

more openings in the apartments for light and

ventilation, and services provision in a way that will

make maintenance easier in the future.

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2 BHK Unit : Type A and Type B

1 BHK Unit : Type A and Type B

Journey of 1000 days, 2009 - 2012

Photographs of Umang Narol Site taken in April 2012


Umang House Owners

Mrs. Rohitbhai Parmar, Umang Narol, Flat No. C-406

Geetaben and Babubhai Chauhan, Umang R3-117Lambha, Flat No.

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Devuben Kanjibhai Parmar, Umang Lambha, R2-220Flat No.

Nainaben Dave, Umang Lambha, G-203Flat No.

Journey of 1000 days, 2009 - 2012


On 23 April 2011, the sprawling DBS campus was

inaugurated. The invitees to the event included

participants in the Design Charette.

The campus comprises of the DBS Communities

Corporate Office, ASHRAM, studios, amphitheatre

with a seating capacity of 200 in two tiers and an

exhibition gallery below the amphitheatre. The

roofing for the studio is a translucent glass sheet

with steel stanchions grounded in support for the

roof. The upper seating in the amphitheatre has

been laid in the form of the steps and a circular

stage has been set for performance.

The DBS staff shifted into the new Corporate Office

from June, 2011.

A residential block for the use of security persons

and support staff is located at one end of the site.

Adalaj Campus

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It is necessary to work with the people

to ensure that they have the capacity to

repay the loans. DBS decided to

introduce activities that mitigate the

risks by introducing health, education

and skills upgrading services within the

scheme. This includes working with

people so that they have better incomes

and their aspirations rise and within a

few years, they become customers for a

larger house.


It is not enough just to design and build

affordable housing schemes. The developer/

builder needs to make arrangements that

enhance the confidence of the HFIs in the

viability of projects that largely cater to

people in the informal sector.

We have envisioned a future in which safe, livable

and legal housing is a reality for all. We have taken

it as our mission to build an enterprise which is

capable, not just to deliver thousands of houses to

base of pyramid home buyers, but also to provide a

host of support systems including housing finance

and livelihood support.

We are convinced that such a mission can be

accomplished only by a dedicated and passionate

team working with the best of facilities in an

inspiring environment. Our new campus at Adalaj

has been created to provide a lively space,

equipped for high productivity. It will accommodate

the offices of both DBS Affordable Home Strategy

Ltd and ASHRAM, its research centre. The campus

reflects our commitment to our vision and mission.

We have embarked on a journey. We know the

destination. We are discovering the route as we go

along. When we started work on this campus, we

were still formulating our business model. Today

we are on a rapid growth path and we see this as

essential infrastructure for operating at scale.

Therefore, even in the face of challenging financial

situation, we have made this investment for our

future. We invite you to join us on our mission and

make this campus yours too. Welcome to the DBS

– ASHRAM campus.

Journey of 1000 days, 2009 - 2012


ASHRAM: Academy for Sustainable

Habitat Research and Management

Based on its initial experiences, the DBS

Management decided to develop a dedicated

research and development centre, named

Academy for Sustainable Habitat Research and

Management (ASHRAM). ASHRAM will contribute to

the growth and development of the 'Affordable

Housing Eco-system' by:

l Creating value and supporting the affordable

housing eco-system;

l Contribute to the larger body of knowledge on

affordable housing;

l Bring together stakeholders from the affordable

housing eco-system for knowledge sharing and

fostering meaningful partnerships;

l Serving as a think tank for research and

advocacy, and

l Fostering social entrepreneurship in affordable

housing.

Specifically, to achieve its vision and mission,

ASHRAM will engage in the following activities:

l Research and Development;

l Training people involved in and/or wanting to get

more involved in catering to the affordable

housing eco-system;

l Advocacy;

l Specialized consultancies;

l Creating and participating in strategic

platforms, and

l Publication and dissemination of knowledge.

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ASHRAM will undertake research, publication and training broadly in the following thematic areas:

Design and Production of Affordable Housing: Housing affordability depends on the right sizing and right

pricing and this varies with the context. This would depend upon local economic development potential, the

status of the informal sector, real estate activity and a host of other variables. A lot innovation in design is

possible and desirable to arrive at an optimal living space both for new homes and home improvements. Further

many new technologies in construction processes, materials and outputs are being tested. The key efforts in

this sector will be directed to the preparation of analytical tools so that practitioners can make informed choices

on appropriate locations, product mix, sizing and pricing, construction technology, construction management

practices, materials and specifications, etc.

ASHRAM will research and develop cost effective and eco-friendly approaches that have the potential for

directly involving target group home-buyers in the housing process. The effort will be to systematically compile

knowledge in a way that makes it accessible and supports generation of new knowledge. This will cover the

entire spectrum from understanding context specific feasibility to construction and post occupancy

maintenance of housing projects.

Affordable Housing Finance: One of the greatest challenges in the affordable housing eco-system is the

access to credit by the informal sector. There are very few financial institutions that target the informal sector

with loans of more than Rs.1,00,000 and with loan tenure up to 20 years. Many of them require guarantors or

other kinds of security. The loan products are pre-determined with inadequate flexibility to address the special

needs of the informal sector. This area requires special efforts in research and advocacy.

ASHRAM will utilize DBS projects to undertake action research and develop effective models in micro finance

models for housing. While proven micro finance models are available for livelihoods, micro finance for housing

is still in at a nascent stage in India.

ASHRAM's activities will also focus on enhancing awareness about the potential of this market segment,

amongst housing finance institutions. ASHRAM will also look at the possibility of creation of a guarantee fund to

encourage financial institutions to lend to the informal sector.

Community Development: The provision of affordable housing must go hand in hand with initiatives for

community development especially in the areas of livelihood, behavioural change with respect to banking and

savings habits, health and education. These initiatives are important to build a cohesive community, enhance

socio-economic status of the customers and cultivate a healthy eco-system for access to credit.

ASHRAM aims to collate global best practices and knowledge, and encourage social entrepreneurship that

contributes to the affordable housing eco-system.

ASHRAM will undertake research and training to support the Community Development Initiative of DBS, and will

partner with organizations having domain expertise in the areas of health, education, livelihoods and micro-

finance to design and implement innovative initiatives which can be scaled up as social ventures.

Journey of 1000 days, 2009 - 2012


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Photographs of ASHRAM taken in May 2011


Lambha Customer Profiling

- The Findings

In order to better understand the target

community it aims to serve, ASHRAM and Griha

Pravesh undertook a survey of 360 of the 500

customers of DBS's first project “Umang

Lambha” in May 2011. For ASHRAM, the

profiling of these Umang Lambha Phase 1

customers will continue over a period of seven

years. The findings from the survey, which are

important for the different entities involved in the

affordable housing segment, are given below.

Location

The Umang Lambha customers are from

different locations across Ahmedabad, with the

maximum customers coming from Vejalpur

(~15 Kms from Lambha), Isanpur (~6 Kms)

and Narol (~5 Kms). This indicates that for

customers in the targeted segment, the

distance of an affordable house from the current

place of residence and occupation is not a

deterrent in their decision to purchase a house.

Income levels

56% of the respondents earn Rs.20,000 or less

per month and 27% earn between Rs.20,000 to

Rs.30,000 per month. Since many households

have more than one earner and/or comprise

joint families, there is a possibility that some

respondents only reported their own incomes.

Thus, there may be some under reporting of the

family income.

Expenditure

23% of the respondents spend more than 70% of

their income, with the highest expenditure being on

food and miscellaneous expenses.

Banking and Savings

94% of main loan applicants and 45% of co-

applicants have a bank account in their own name,

and State Bank of India, Dena Bank and Bank of

Baroda are the most popular amongst the account

holders. Only 43% of the respondents have some

sort of savings while 57% have assets in the form of

land or property, 4% have rental incomes, 12% have

cars and 69% have 2 wheelers. Only 11%

respondents have taken other loans.

Occupation

Of the 60% respondents who are self-employed or

informally employed, 36% are self-employed, 6%

have small shops/ stalls, 9% are daily-wage

workers, 3% are independent service providers

such as plumbers, electricians, mechanics etc., 7%

are working as auto-rickshaw and bus drivers or

conductors etc. and 1 % are home-based workers.

40% of the respondents are formally employed/

salaried (4% in Government and 36% in private

employment).

Journey of 1000 days, 2009 - 2012


Self Employed with

shops/restaurants/garage

6%

Autorickshaw,

transport

7%

Home based-

tuition/tailoring/

embroidery

1%

Daily wage

labor

9%

Independent service

providers (plumber,

mechanic, etc.)

3%

Salaried- private

36%Salaried- Govt.

4%

Self

employed-

other

34%

Access to services

90% of the respondents have paved access to their

homes, 85% have a water-supply connection and a

toilet in their homes and 100% have electricity

connections. The high level of access to services is

because the respondents come from slums that

have been improved under the slum networking

project of Ahmedabad Municipal Corporation (1998 4to 2006) .

Documentation

There is a huge gap between the requirements

of housing finance entities for processing loan

requests and the documents the respondents

have. As indicated in the diagrams, there are a

variety of documents that are acceptable to

housing finance entities for considering and

processing loan applications. Despite this, the

Findings: Lambha Customer Profiling

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Availability of KYC related documents with salaried customers

Do not have Have

Identity proof

Residential proof

Salary slip of past three months

IT Form 16 details of past three years

Income Tax Returns of past three years

Bank Statements of past 12 months

Last Provident Fund Statement

Appointment / confirmation letter

Private company profile

Previous loan statements, if any

Additional investment details (LIC, KVP etc.)

0 10 20 30 40 50 60 70 80 90 100

lack of a regular income proof is a major

hindrance for people in the informal sector.

These findings about availability of KYC related

documents with customers have provided the

housing finance companies with a good

indication of the issues that will be faced with

the target group customers.

HFIs

The research revealed that instances of

personal loans have been under reported by the

customers at the time of loan application. This

indicates the potential for home loans that

provide an option for debt consolidation. In

addition, as the DBS experience has shown, there

is a need for housing finance companies that are

dedicated to this segment to invest in general

awareness programs, customer education, and in

creating platforms for assisting individuals in

applying for loans and for obtaining required

documentation.

NGOs & CBOs

The DBS experience clearly highlights the fact that

handholding support cannot stop with the purchase

of a house. The occupants need effective support

Journey of 1000 days, 2009 - 2012


Availability of KYC related documents with self-employed customers

Identity proof

Residential proof

Income Tax Returns of past three years

Audit report of the past years

Bank Statements of past 12 months

Address proof of business place

Agreement of Partnership

Business profile

Pan Card Number of Company

Previous loan statements, if any

Additional investment details (LIC, KVP etc.)

0 10 20 30 40 50 60 70 80 90 100

Do not have Have

model of providing pre-school education,

activities for women's empowerment, financial

literacy, skill upgrading etc. in the new

settlements.

Other Organizations

ASHRAM also conducted short surveys of

families who booked homes in Umang Lambha

and Umang Narol, and who later cancelled their

bookings. The study revealed that the corpus

of CBOs and/ or NGOs even after they move into

their new homes, especially for supporting them in

their efforts for upward socio-economic mobility

and to encourage their involvement in the long-term

operation and maintenance of the project areas.

This experience indicates that organisations

working on housing issues can enable access of

the poor to affordable housing by promoting others

or becoming facilitators and “market enablers”. This

will provide stimulus to the affordable housing eco-

system, and increase the demand for the DBS

Findings: Lambha Customer Profiling

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available with the customer for the down

payment and the monthly instalment on the loan

sanctioned often results in a viability gap of

Rs.20,000 to Rs.30,000. Consequently, the

home aspirant is unable to make the down-

payment in a timely manner, leading to

cancellation of the booking. This shows that a

fund that could hedge the risks of the housing

finance company or provide interest free loans

for the 'margin money' would be a possible

solution to this problem. The government,

charitable foundations or non-profit agencies

intending on working in this sector could

actively consider support in this area.

Developers

The DBS experience shows that the niche

market for affordable housing is large. In

Ahmedabad, the housing for this segment

should ideally cost less than Rs.7,00,000. Thus,

developers of such schemes need to be

innovative to provide one and two room houses

at competitive prices.

Journey of 1000 days, 2009 - 2012

Photograph of Umang Narol site taken in April 2012


Strengthening the DBS Team

Reserve Bank of India for more than four and

half decades, and was formerly Executive

Director of National Housing Bank (wholly

owned by RBI). He has held various important

positions in RBI which included multiple

deputations to the Unit Trust of India and the

NABARD during their formative years. He was

also Consultant to the Asian Development Bank

and the Citibank. He is currently an Advisor and

on the Board of Directors of reputed corporates

such as Sahara Group and the Bengal Ambuja.

The DBS Team is keen on the involvement and

guidance of experts and practitioners who can

support the cause of affordable housing and be

catalysts for enabling access of people in the

informal sector to affordable housing. In addition,

DBS endeavours to continue building capacity of its

human resources.

In 2011, Mr. S.P. Ghosh, an authority in the field of

finance, investment and regulation, accepted the

DBS invitation to join its Board as an Independent

Director. Mr. Ghosh was associated with the

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2012: Partnerships and Management Systems

The first four months of 2012 have been eventful with the launch of Umang

Sachin in Surat and substantial progress in several other areas.

Mansing and Rekha Maurya, Umang Lambha, Flat No. G-120

Journey of 1000 days, 2009 - 2012


One of the key achievements at the start of the year

was the decision to launch a new Umang project in

Surat in partnership with RJD Buildcon. Sachin is a

major industrial hub, a railway junction on the Surat

- Navsari railway line, and there are several housing

schemes under implementation in the surrounding

areas. Surat Municipal Corporation too has

constructed 2,372 dwelling units in the area for

“economically weaker section groups” under a slum

upgrading initiative.

The Umang Sachin project site of 4.02 acres

(16,307 sq.m/ 175,465 sq.ft.) is close to the railway

station, and it will have 839 apartments (128 of 1

room+kitchen and 711 of 2 room+kitchen) in a

total of seven blocks. Four blocks will have four

floors above a hollow-plinth and three will have five

floors above a hollow-plinth. The apartments are

priced in the range of Rs.4,85,000 to Rs.7,11,000.

At the launch on 26 February 2012, Umang Sachin

received a tremendous response. Informally more

than 80 percent of the units were booked before the

project was officially launched.

Umang Sachin, Surat...

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Snapshot Comparison of Umang Projects

Journey of 1000 days, 2009 - 2012

Project Name

Location

Total site area

Setbacks & Margins

Net Saleable Area

No.

of Blocks

Number of floors

Number of apartments and their sizes

Launch Date

Price range

Partners

Booking Status on 10-06-2012

Pricing Range as on

10-06-2012

Umang Lambha

Vatwa, Ahmedabad

3.62 acres

(14,641 sq.m) / (1,57,534 sq.ft.)

13 m. from high tension line

4.5 m. from road

3 m. from plot boundary line

3,42,279 sq.ft.

10

Ground +3 floors (4 Blocks)

Ground +4 floors (1 Block)


Total

792 of which bookings were opened for 519 units in Phase I & 273 units in Phase II

1 rm+kit

312 nos (~40%)

306 to 324 sq.ft.

2 rm+kit

435 nos (~55%)

486 to 585 sq.ft.

3 rm+kit

45 nos (~5%)

667 sq.ft.

2 May 2010

Rs.

3,50,000 to 8,50,000.

DBS Communities

Saath

• 100% booked

• Avg Rate/sq. yd=

Rs.10,690/ -

(min. 9,999/ & max. 13,500/-) -

• 1 RK unit price

(min. 3.30 – max. 4.68 Lakh)

• 2 RK unit price (min. 5.40 – max. 7.60 Lakh)


Umang Narol

Narol, Ahmedabad

3.4 acres

(13,762 sq.m)/ (1,48,079 sq.ft.)

4.5 m. from road


3,66,390 sq.ft.

8

Ground +5 floors

(parking on ground floor)

Total

885 of which bookings opened for 450 units and the rest after 2 months

1 rm+kit

360 nos. (~41%)

306 to 324 sq.ft.

2 rm+kit

525 nos (~59%).

486 sq.ft.

6 March 2011

Rs.3,99,000 onwards

DBS Communities

Saath

RJD Buildcon (Land Owner)

• 95% booked

• Avg Rate/sq. yd Rs.

13,900/ - (min 11,750/- & max. 15,500/-)

• 1 RK unit price (min. 3.99 –

max. 5.40 Lakh)


All Blocks

Umang Sachin

Sachin, Surat

4.02 acres

(16,307 sq.m)/ (1,75,465 sq.ft.)

4.5 m. from road side

10.5 m. from centreline of road to building face


4,48,650 sq.ft.

7



Total

839

- bookings opened for all units

at the same time

1 rm+kit

128 nos. (~15%)

450 sq.ft.

2 rm+kit

711 nos. (~85%)

550 sq.ft.

26 February 2012

Rs. 4,85,000 to 7,11,000

DBS Communities Saath

RJD Buildcon

• 70% booked

• Avg Rate/sq.ft. @ 1,450/-

• 1 RK unit price – 4.81 Lakh

fixed

• 2 RK unit price - 7.11 Lakh

fixed

(Land Owner)


The projects built under the Umang banner will

have similar facilities, layout plans, finishes and

detailing. With its focus on providing customers with

optimal useable space and quality finishing, DBS

Communities decided to use conventional building

techniques and materials rather than go for new

technologies and construction materials.

Considering the affordability of its target customers,

land prices, and the costs of building materials and

construction, the average size and planning options

for one and two room units are limited. Therefore,

once the design team led by Vineet Chadha and

Anjum Gupta finalised the basic plans of different

size apartments and clustering options, the DBS

Team agreed that these could be adapted in other

locations with minor adjustments and refinements in

response to the site contexts and conditions.

Setting a Benchmark

for DBS Umang Projects

Consequently, the efforts for new projects/

developments would focus on site planning and

refinement of cluster and block designs. This

would result in optimal use of unit and cluster

designs and in reduction of time required for

planning and designing new projects.

Having finalised which building and finishing

materials to use to maintain a quality standard

acceptable to DBS, and to set a benchmark for

design standards for all Umang Projects, DBS

decided on preparing a Design Manual that will

guide future projects and practices more

efficiently. The DBS Design Manual will provide

clear guidelines about the processes and ways

of constructing the houses, detailing of

elements and specifications of building

materials and finishes. It will provide

comprehensive information about relevant

development guidelines that have dictated the

design of the individual units and the apartment

blocks, as well as about requirements for

spaces for the community development

initiatives.

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In 2012, DBS formally initiated collaboration with Nimish Patel and Parul Zaveri (architects, urban designers

and conservationists) of Panika, Ahmedabad. The aim is to further ensure that DBS customers get good value

for money, resources are optimally utilised, and optimal comfort and space utilisation are achieved,

Henceforth, a dedicated affordable housing division in Panika will work on the DBS projects.

The design philosophy of Nimish and Parul includes the following:

l Every problem, irrespective of its nature, magnitude or constraints has an appropriate solution

l Appropriate solutions will only come through clarity in the identification of the problems, the selection of the

correct tools and their appropriate applications

l Design and construction processes must offer opportunities for creative inputs at all levels of participation

Spreading Association

with Experts…

In order to achieve its Mission, DBS is committed to working with people who are

exploring alternative paths and passionately working towards equity and a sustainable

approach to development. Since its inception, the core group and management team has

expanded to include other experts in the fields of social development, architecture,

planning, housing finance and management. The expertise available with DBS Communities

has also grown through association and partnerships with other individuals and entities.

Journey of 1000 days, 2009 - 2012


There are several new housing finance companies that are specifically targeting people

in the informal sector. Working with people with varied financial situations, the HFIs requires

special skills and attitudes that are specific to the segment.

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The DBS Team members share a vision and

recognise that their work is not only about

constructing and selling affordable houses for a

specific market. It requires a lot more efforts,

actions and processes that address the issues,

gaps and hindrances that arise because of the

specific market that the product is catering to. It

entails facilitating and enabling people to apply

for housing loans, and later, for regular

repayment of their loan instalments and

maintenance of their house and environment.

For DBS, this includes enabling access to

health and education services and support

through Urban Resource Centres after the

families move into their new homes.

The efforts and actions of the Team over the

initial 1000 days has given insights about

several issues and provided opportunities for

learning significant lessons that would be useful

for builders/ developers as well as other

entities/ groups that are interested in working in

the affordable housing market, especially

financiers.

Essential areas to look into are:

81. The Policy/ regulatory environment;

2. Design and construction;

3. Partnerships and Joint Ventures:

4. Housing finance, and

5. Demand side support.

Key Lessons after

1000 Days

Journey of 1000 days, 2009 - 2012


The Policy/ Regulatory

EnvironmentHousing policy in India has largely focused on the

supply side. However, in order to have a thriving

market for affordable housing, it is essential to

address policy issues for the supply and demand

side of the affordable housing market, that is, from

the perspectives of the developers and the

customers.

The developer's perspective1. The requirement of environmental clearance for

projects of more than 20,000 sq.m built-up area

is a significant and important requirement, but

has negative implications on the affordable

housing market. The lengthy process leaves

developers with two options:

a. To plan projects that cover less than 20,000

sq.m built-up area and thereby lose economy of

scale in providing common facilities, or

b. To factor in the cost of delays of 6 to 12

months in launching the project.

2. The special provisions for low-cost housing in

building regulations are generally meant only for

up to two storied tenements and are not suitable

for low-cost buildings. Thus, developers have to

follow regulations, such as allocating parking

spaces for cars etc. At the same time, the

regulations do not include provision for mixed-

use/ commercial spaces at different floor levels.

3. The other building norms and space standards

result in the minimum cost of a dwelling unit

being too high. Thus, the lowest cost apartment

is not truly affordable to people with

incomes of up Rs.20,000 per month.

Permission for development of a wide range

of house types including dormitory or single

rooms that have cluster or group-level

kitchens, and toilet and bathing facilities etc.

would encourage more experiments and

options for those seeking a basic shelter.

4. Developers of affordable housing need

access to bridging finance/ funds because

the processing of home loans takes longer

for this market segment. This makes the

cash inflow back‐ended. Further, since this

market segment is highly price sensitive, the

project cycles need to be as short as

possible.

5. Most developers wanting to serve this

segment are relatively new entrants and are

in this business for reasons larger than short

term financial gains. With shorter track

records, they face challenges in accessing

cheap project finance.

6. Structural issues in urban development

cause artificial constraints in land supply in

the private domain and consequently drive

up the market value of land.

7. While structural reforms in the sector are

awaited, provision of legally clear

developable land at market value by the

government will substantially support the

affordable housing developers. In fact, this

would benefit the market segment without

any element of subsidy.

Key Lessons after 1000 Days

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The customer's perspective

The issues that customers face are related to

'qualifying' for a housing loan and to the actual

terms of borrowing.

1. Entry barriers for home loans for this market

segment, such as documentation, banking

habits and income proof hinder mainstream

housing finance companies and banks from

lending to low income customers even though

they are considered a “priority sector”. Based

on the DBS experience, it is essential to invest in

providing facilitating and handholding support

for the customers. DBS established Griha

Pravesh to provide such support and is actively

promoting its use by other developers.

2. People with incomes of up to Rs.20,000 per

month end up paying almost twice the interest

that higher income customer's pay and that too

in half the time. Also they get much lower loan to

value ratio. The risk perception is unduly high

despite extremely positive experiences of

Housing Finance Institutions (HFIs) and Micro

Finance Institutions (MFIs) dealing with this

sector. Given this situation, the margin money

component becomes a big barrier for many low

income customers who would otherwise make it

through.

3. People in this segment generally have very

strong ties with their kith and kin, and helping

each other is fundamental to their existence.

Therefore joint families are not uncommon.

However when a housing loan is given, HFIs still

evaluate their credit worthiness in a very myopic

manner owing to 'Guidelines of the Reserve

Bank of India'. Thus, a family of 8 members

having lived together for more than 10 years

with a combined monthly income of

Rs.22,000 is not eligible for a Rs.4,40,000

loan (given by 30% of monthly income as

EMI), but will probably get a loan based on

the incomes of the 'applicant and the

co‐applicant'. Therefore their actual eligibility

may come to about Rs.240,000, and a family

that requires a minimum living space of

about 500 sq.ft. can only afford a house of

about 350 sq.ft.

4. A majority of low income customers live in

rented accommodation (even in informal

settlements and slums) and find it difficult to

pay both rent and pre‐EMI during the

construction period. Therefore housing loans

with a moratorium on interest during

construction is desirable.

Journey of 1000 days, 2009 - 2012


Project Planning, Design

and Constructionl DBS Communities ensured that the design of

the individual units was based on the size and

character of multiple use spaces that potential

customers are used to and not dictated by cost

and space constraints. Further, the cluster plans

aimed at creating external spaces that people

could use comfortably. Further, quality finishing

materials such as granite kitchen platforms were

used to enhance the quality of the finished units.

l The allocation of spaces for community

development initiatives have resulted in some

reduction in saleable apartment area – but the

benefits of introducing these services in each

project area means that the occupants have

better and easier access to basic services.

l In the current economic situation, the targeted

market segment can afford a maximum of two-

room apartments. An analysis of the

background studies and DBS observations

have contributed to the planning of one and two

room apartments and clusters. Thus, although

future projects will comprise of one and two

room units, there is scope for refinement of the

unit and cluster plans in response to the context

and feedback from Umang Lambha customers.

l Standardisation and a product mix are essential

for efficiency and resource management.

l Introduction and refinement of design elements

is a continuous process. Additional efforts are

required to provide spaces for community

interaction.

l The decision to introduce community

development initiatives as part of the

business strategy and allocate spaces for

them means that although the developer is

losing out on 'saleable apartments', the

design is more responsive to the needs of

the targeted customers.

l The building norms are in favour of parking

spaces and hence design cannot be

responsive to the spatial needs of specific

customers, such as requirement for open

and semi-open community use spaces.

l Although coordination amongst specialists

working on the architectural, structural and

infrastructure plans for such projects is

largely facilitated by the Design Team and/or

developer, during the planning and

implementation stages of Umang Lambha,

DBS identified the need for better

coordination with the structural design team.


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Joint VenturesDBS Communities has experimented with a

different implementation model for the three

projects launched before April 2012. In the pilot

project at Lambha, DBS bought the land, undertook

construction and development work, and marketed

the project.

With an on-going project to demonstrate what DBS

Communities was aiming for, DBS partnered with a

landowner for the Umang Narol project. The

arrangement was for the landowner to get a share

of the profits, while DBS took responsibility for the

project's construction and marketing. For the

third project Umang Sachin at Surat, DBS once

again partnered with the landowners who also

are responsible for construction and

infrastructure development. In this case, DBS is

responsible for designing, marketing the project

and customer management.

For each project, DBS is supported by housing

finance companies that are venturing into the

affordable housing space and providing loans

to both - the formal and informal sectors. These

include MHFC, GRUH Finance, HFFC, Muthoot

Finance, etc.

Joint Venture Arrangements for Umang Projects

LAND DESIGN CONSTRUCTION MARKETING FINANCE

DBS buysthe land

DBSresponsible for

construction

DBSresponsible for

project marketing and customermanagement

DBSresponsible for Design & Site

Planning


Planning


Planning

Landowner

partnerswith DBS

Landowner

partnerswith DBS

DBSresponsible for

construction

Landownerresponsible for

construction

DBSresponsible for


DBSresponsible for


MHFC, GRUH Finance

Ltd. and Dewan Housing Finance Corp

Ltd.

GRUH FinanceLtd., MHFC and Muthoot Finance

Micro HousingFinance

Corporation and Muthoot Finance

Umang LambhaAhmedabad

3.62 acres14,641 sq.m

Umang SachinSurat

4.02 acres16,307 sq.m

Umang NarolAhmedabad

3.4 acres13,762 sq.m

Journey of 1000 days, 2009 - 2012


Housing FinanceDespite the demand and saleability of houses in

projects meant for people in the informal sector, the

projects cannot be treated the same as those

meant for the general housing market.

The developer needs to put in substantial efforts to

have the required cash-flow. Although the demand

for houses costing up to Rs.8,00,000 exists, there

are issues related to cash-flow because of the

market segment for which the houses are being

built. This is because the financial situation of the

customers is fragile and any unforeseen event

(such as a sickness related expenses) can result in

the customer not paying instalments or the down-

payment. In some cases, the customers had to

cancel a booking because they could not get a loan

due to lack of proper documents for the financing

entity. Sometimes customers make the down

payments promptly and the banks tentatively

approve loans, but since the customer is unable to

provide the required documents/ documentation,

the HFIs do not release the funds.

The developer/ builder needs to make

arrangements that enhance the confidence of the

HFIs in the viability of projects that largely cater to

people in the informal sector. Since HFIs are more

comfortable in extending finance to the informal

sector when an intermediary such as an NGO is

acting as an interface, DBS has an advantage

because of its association with Rajendra and

partnership with Saath.

The DBS observation is that the rate of cancellation

and new bookings for people in the niche segment

is about ten times more than in projects meant

for the formal housing market. Thus, the builder/

developer requires funding to bridge the time

between getting the returns from the customers

and the timing when funds are required for

timely and efficient construction process.

HFIs have laid-down formulae, which look at the

debt burden, income and longevity of the

person for giving loans in the formal sector.

However, this is not true for the informal sector,

which comprises people with a variety of

occupations such as bus-conductors and

sweepers who are formally employed and have

regular pay-slips and vendors etc. do not have

this. Further, while borrowers in the formal

sector are generally well aware of the nuances

and have the required paperwork such as

driving license for address proof, the informal

sector customer may only have a ration card.

So guidance for customers from the informal

sector is absolutely essential through trained

staff/ facilitators of entities such as Griha

Pravesh for linking them up with finance

companies.


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Currently, there are few such facilitating entities

compared to the huge market requirement, and

developers cannot take this up because it

would require them to employ three times the

number of people to engage with three times

the potential clients (one-in-three potential

customers actually become a real customer/

house buyer). The experiences and related

actions taken by DBS Communities in terms of

establishing Griha Pravesh and organising the

Pragati Parivaar Seminars have resulted in more

financing companies coming forward to support

Umang projects.

Facilitators need skills for judging the risk

underwriting for potential customers. Generally,

since each person does the risk underwriting

intuitively, different facilitators and financing

institutions are likely to differ about the risk

posed by a potential client. For the informal

sector, assessors look for the following three

indicators:

1. The amount of steady income for month

2. The one-shot spend pattern of the person

3. Capital spend income

Unlike in the formal sector, where generally a

client would be prompt in meeting the banker

when called pertaining to a loan, in the informal

sector, the same urgency in making timely EMI

payments is not observed. Further, about 4 to 5

meetings are required with informal sector

clients before the loan process is finalized while

for the formal sector, the process may end with

one or two meetings. Some HFIs such as

GRUH and MHFC in Ahmedabad have staff

who can decide on whether to give loan to

particular customers while others require the

paperwork to be sent elsewhere or their head office.

When the customers have all the papers/

documents, the HFIs can sanction the loans very

quickly, for example, HFFC sanctioned 3 loans on

the day of the launch of Umang Sachin in Surat.

Looking at the issue from the commercial

perspective of a developer, he would like to

complete the construction and sale of a scheme as

quickly as possible and move on to another

scheme. He cannot be casual or charitable

because he is working on enabling access to the

poor for an affordable housing. Thus, in schemes

for affordable housing, here are diverse attitudes to

the 'projects'.

Journey of 1000 days, 2009 - 2012


Community DevelopmentThe main learning from the DBS Communities'

efforts and activities of the past 1000 days is that it

is possible to enable access of people from the

informal sector to formal housing. However, in order

to achieve this objective, there has to be coherence

and concerted actions for addressing the three core

areas of the DBS business strategy.

The commitment of DBS Communities to support

people at the base of the socio-economic pyramid

to purchase a house has led to further actions such

as providing an interface between the communities

and housing finance companies. DBS Communities

has collaborated with Saath to provide/ extend the

following to its targeted customers:

l Facilitating support and outreach to potential

customers in different slum areas in

Ahmedabad;

l Conducting research/ studies of people in the

informal sector;

l Special arrangements and activities as for Griha

Pravesh, and

l Once customers start occupying/ moving into

their new homes, extend health, education,

development and micro-finance/ savings and

credit activities through Urban Resource

Centres.


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Rekhaben Mansingbhai Maurya, Flat No. G-120, Umang Lambh

Journey of 1000 days, 2009 - 2012


Micro Housing Finance Corporation Limited

(“MHFC”) is the first housing finance organisation to

focus exclusively on the financially excluded urban

low income households. It focuses on personal

verification of income and expenditure patterns

rather than insist on income proof and payslips.

MHFC works with developers who are constructing

apartments costing less than Rs.10,00,000.

To start with, since MHFC and DBS are targeting the

same economic group, DBS invited MHFC for the

Design Charette. During initial interactions, MHFC

was very impressed with the commitment of Sanjay,

Balachandran and Rajendra, and their focus on end-

users. MHFC decision to collaborate with DBS was

influenced to a large extent because of its

association with Saath and Rajendra Joshi. MHFC

has partnered with DBS in the three Umang projects

launched till April 2012 and its confidence in DBS

has been strengthened because of the following

observations:

a) DBS's focus on end-users has led to important

initiatives such as the organising of Credit Camps

and setting-up of the customer counselling

centre - Griha Pravesh. The initiative of

supporting the financially excluded families in

their quest for a house and helping them

become eligible for loans is unique. MHFC has

been actively involved in the Credit Camps and

Pragati Parivaar seminars organized by Griha

Pravesh. MHFC is particularly impressed with the

Pragati Parivaar Seminars where the customer is

not just given information on DBS projects, but

also on other competing projects. This

transparency and focus on the customers

getting maximum choice will ultimately make

it sustainable and make it DBS stand out

amongst its peers.

b) DBS has a long term perspective. It is

building its business block-by-block and has

stayed true to its original mission by not

moving into the mid or higher market

segments. It views 'profits' as a means for

sustaining the organisation rather than

making the maximum possible profit as

quickly as possible. This is amply

demonstrated by the fact that unlike several

other developers, DBS has raised the prices

of the houses in a more conservative manner.

c) Another unique approach of DBS is that it

reserves a certain percentage of houses for

clients who come through Saath, which

further reveals it's commitment and focus on

lower income end-users.

d) DBS is now implementing its third project

and it has about three more in pipeline. It

shows that DBS is a serious and credible

long-term player in this segment.

For MHFC, the relationship with DBS as

important and it expects the partnership to grow

over time. As on 31 March 2012, all MHFC's

customers who may not have been deemed

credit worthy by mainstream banks and housing

finance companies, are paying their EMIs on

time. There were no past dues.

Micro Housing Finance

Corporation Limited (MHFC)

HFI Perception of DBS

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Home First Finance Company (Home First) aims

to make home loans easier for consumers who

are buying their first home. Its focus is on people

wanting to purchase houses in the range of Rs.

5,00,000 to 20,00,000. The range is wide

because the house prices in cities like Mumbai

would be very different from others.

Since many housing finance companies that

focus on the affordable housing market have

started over the past 4 years, HFFC's business

strategy is to tie-up with developers who are

constructing houses for the same target group.

As of 30 April 2012, HFFC has a presence in

urban peripheries of Ahmedabad, Bangalore,

Chennai, Delhi, Mumbai and Pune.

HFFC has found that because of its focus on

customers wanting to purchase housing costing

a maximum of Rupees 20,00,000, the supply is

restricted. DBS is one of the developers that has

continued its focus on people who can afford

houses of up to Rupees 10,00,000 by

constructing houses of 1 and 2 rooms and

kitchen. This is unlike other builder/ developers

who get tempted to construct larger houses, sell

them and move on to the next project.

In the affordable housing segment, customers

are generally purchasing their first house, and

are less aware about the processes involved

than people in higher income groups. In

addition, they are more hesitant about making

the decision to purchase a house because it

involves a high financial risk. They ask a lot more

questions to clarify doubts or ascertain details. At

the same time, they have few documents that are

required by housing finance institutions. HFFC

therefore has evolved a process for the evaluation of

such customers through physical verification.

HFFC identified DBS Communities as a potential

partner while searching for organisations working

with its target segment. This was substantiated by a

Monitor Group Report that identified DBS as an

important entity in the affordable housing market. By

the time DBS Communities and HFFC came

together, almost all the units in Umang Lambha were

sold out. HFFC therefore started its association with

DBS with Umang Narol.

HFFC is likely to continue its association with DBS in

the future because they are targeting the same

market segment. Customer counselling is very

important for the affordable housing customers and

DBS is doing this very well in two ways. One is the

activities through Griha Pravesh and the second is

through DBS staff that support customers on site by

responding to their queries. Further, DBS has

associated with Saath which takes care of the

preparatory work in terms of thee customers having

bank accounts and having some savings for the

down payment.

Home First Finance

Company (HFFC)

Journey of 1000 days, 2009 - 2012


On completion of 1000 days, besides acting on

the lessons and directions identified to date,

DBS communities will be working towards

actualising its vision and mission together with

its Team of experts. The DBS Team is poised to

take actions as follows:

1. DBS shall begin to access formal financial

institutions for project financing. The

business model is viable and profitable and

there are plenty of options available from

banking institutions to lending companies.

2. DBS understands that a sustainable venture

that provides quality products can be

achieved by fostering positive

collaborations. It therefore intends to enter

into partnerships and tie-ups with investors,

reputed construction companies and land

owners.

3. DBS recognizes the need to generate

goodwill and participation from the larger

community and intends to enrol a wide

range of accomplished individuals as

symbolic owners of the company.

4. DBS has put in place ERP systems in place,

which through ongoing implementation, will

help DBS in becoming a system driven

organization.

Beyond June 2012

Way Forward and Future Plans…

esign uild erve


1.To have an assessing window that assesses the

potential customer as soon as he/ she walks in to

'possibly book an apartment'. This can either be

done by Griha Pravesh or by the housing finance

institution. When DBS next opens a scheme/ or

location, Griha Pravesh or the HFI will assess the

customers' readiness in terms of availability of

paperwork/ documents and margin money when

they walk into the booking office. If the customer is

ready, the HFI takes her/ him and works towards

approving a loan and if not ready, she/he comes

under the guidance of Griha Pravesh.

2. To have an analytical tool such as CIBIL (Credit

Information Bureau of India Limited, which acts

like a central repository of credit information in

India where as many as 500 different banks and

financial institutions report each of their

customers actions to them) for this target group.

3. To check whether this group takes consumer

loans for TVs, refrigerators and other white

goods that are offered by retailers. This

would reveal what is the minimum

documentation 'accepted' for such consumer

loans (PAN number, Name and supporting

proof documents).

4. Demand Aggregation – introduce a means

that provides visibility into purchasing

requests for 'affordable housing' through the

process of coordinating and consolidating

requirements. Demand aggregation would

facilitate various companies of an enterprise.

It would enable identification and equipping

of potential customers who are not yet ready

to purchase a house. Further, this can help in

cost-effectiveness through identification of

product demand across multiple locations,

and aggregation of distribution channels or

other units of the enterprise. For example, a

single purchasing request and ordering from

a limited set of suppliers following

standardized purchasing procedures.

5. The role of Griha Pravesh is very important

and one would want it to scale-up multiple

times.

Housing Finance

Journey of 1000 days, 2009 - 2012


Community DevelopmentAs already highlighted, community

development initiatives for the long-term have

already been planned and spaces for locating

them are an integral part of each DBS project

plan and design. However, DBS Communities

anticipates some changes in the nature of

activities in response to the wider socio-

economic environment and aspirations of the

people.

As individuals get actively involved in say micro-

finance, health, education and/or livelihood

activities in a particular project, they will be

supported for further upgrading of skills for

managing community development activities within

the project area as well as for supporting and

training others in new areas.

Way Forward...

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Future Umang Projects in Gujarat

Bhavnagar

Ahmedabad

Gandhinagar

Surat

Rajkot Vadodara

India - Gujarat

Journey of 1000 days, 2009 - 2012


DBS Affordable Home Strategy Limited is led by a team of practitioners and professionals who come from

diverse backgrounds – finance, architecture, urban planning and management. What unite them in this

venture are their passion and a strong belief that it is possible to provide financially viable, good quality, and

market based solutions for affordable housing.

The Core Team…

Sanjay ShahSanjay Shah Real Estate Developer & Architect

I have always been inspired by traditional

and informal finance systems which are

built entirely on relationships of trust. I

want DBS Communities to extract the

essence of these traditional models and

cast them into a system that is both

humanitarian and viable, and use it to

create liveable and affordable community

housing.

Sanjay Shah has over 15 years of experience in

architecture and real estate development, and is

currently involved in real estate development in

Ahmedabad, Dubai and Morocco.

Sanjay started his career as a real estate developer

in Ahmedabad in the mid-nineties. Way ahead of

the market at that time, he conceived and built a

successful series of fully furnished and moderately

priced apartments under the brand name

Nandanvan. In the process, Sanjay innovated on

cost control as well as pricing, and his company

became one of the first few in Ahmedabad to

develop effective quality management systems.

Since 2005, Sanjay has also been involved in a

construction business in Dubai where one of the

specialized areas of work that he has been dealing

with is workforce housing. This experience

reinforced his earlier interest in affordable housing.

Sanjay believes in the viability of a market based

approach to community housing. He brings his

vision, his capabilities as a strategist, and

pragmatism to every aspect of DBS’s functioning

and project concepts and ideas based on his many

years of ground experience,. He believes in

challenging himself and others and his involvement

brings rigor to processes in the organization. He will

focus on strategic positioning of DBS Communities

in the real estate market, on the company's internal

systems, and on strategies for procurement of land,

construction and marketing.

esign uild erve


B. R. BalachandranArchitect & Urban Planner

Urban India has just begun its journey of

transformation. It is important that this

transformation should start with the people

who actually build our cities. It is my vision

that DBS Communities will participate in

building the foundations of a truly

egalitarian society.

B.R. Balachandran is an architect and urban

planner with nearly two decades of professional

experience. He is the Managing Director of

Alchemy Urban Systems Private Ltd. - a

professional planning and design firm based in

Bangalore.

Balachandran started his career as a practicing

architect in Thiruvananthapuram, and then from

1997 to 2006 worked as a planner in

Environmental Planning Collaborative),

Ahmedabad. As its Executive Director, his

notable contributions included the

reconstruction planning of Bhuj (Kutch, Gujarat)

after the earthquake of 2001. In 2007, he set up

Alchemy Urban Systems Pvt Ltd and has been

working on projects ranging from planning for

water management in Kolhapur to planning for

post-flood reconstruction in Bihar. Balachandran

has led planning teams on the preparation of

Development Plans and other urban planning

projects across India as well as in Sri Lanka,

Nepal, Bangladesh, Mauritius and Indonesia.

With his colleagues at Alchemy, Balachanadran

has been campaigning for changing urban

planning, policy and legislation to enable

market based solutions for affordable housing.

As one of its Directors, Balachandran brings to

DBS, his understanding of the urban housing

process with its multiple dimensions. He

focuses on systems and processes that enable

affordability for the target group of buyers.

Journey of 1000 days, 2009 - 2012


Dinesh Jain is a Chartered Accountant by

profession. He has 20 years' experience in

corporate finance. Based in Ahmedabad, he is

one the main promoters of the Company.

Dinesh started his career with the Ahmedabad

based Jindal Group in 1992. He was also a

Director in several group companies including

Balaji Realty Ltd, a subsidiary of Jindal

Worldwide Ltd (listed in the BSE). Dinesh has

managed the finances of many group

companies involved in textiles, dyes and

intermediaries, internet service providers, real

estate and investment activities. He has been

involved from the conceptualization of new

enterprises to their full operation.

Recently, Dinesh entered a new phase in his

career and business as Promoter and Director

of several new companies including Tanya

Infrastructure Pvt. Ltd. and DBS Affordable

Home Strategy Ltd.

As one of its main promoters, Dinesh brings to

DBS his expertise in building large and robust

financial management systems, the qualities of

leadership and sound principles of financial

management. He focuses on corporate finance,

project finance and community housing finance.

Dinesh JainChartered Accountant

I firmly believe that sound financial

management systems are essential for any

company to deliver on its promise. I am

committed to the highest levels of integrity

and accountability in the finances of DBS

Communities.

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Rajendra JoshiSocial Entrepreneur & Founder Trustee, SAATH

I am convinced that the quality of life of the

urban poor will improve when they are

approached as a significant market. For

housing, the need is to create a sustainable

market ecosystem for this segment. At DBS,

we want to demonstrate that the cost and

design of houses, affordable housing finance

and community development are

complementary enablers for affordable

housing.

Rajendra Joshi, a social entrepreneur, has been

involved in development work with the urban

and rural poor in India through Saath - an NGO

he founded in 1989. His experience in

development and social entrepreneurship has

made a great impact in the low income

communities and slums of Gujarat, and other

Indian states. Working in cooperation with

several government, academic and non-

governmental organisations and institutions, he

has made several interventions to improve the

life of those at the Bottom of the Pyramid. By

using market-based strategies to create

inclusive societies in both poor urban and rural

communities, he has strategized, planned and

facilitated interventions in public health,

education, livelihoods, infrastructure and basic

services, microcredit, natural resource

management, institution building, organisation

development, public policy, conflict resolution

and disaster management.

As a Director of DBS Affordable Home Strategy

Ltd., Rajendra brings to the enterprise his in-

depth understanding of community

development and in particular, the areas of

livelihood, microfinance and housing

affordability.

Journey of 1000 days, 2009 - 2012


Sakti Prasad Ghosh has a chequered service

career spanning over three and a half decades.

The journey started as a Probation Officer

(Class I) in the Reserve Bank of India (RBI) and

ended with him retiring on superannuation as

Executive Director, National Housing Bank

(Reserve Bank of India). During this period

Ghosh was placed on deputation, twice with

Unit Trust of India (UTI), and to National

Agricultural Bank for Rural Development

(NABARD) and National Housing Bank (NHB)

during their formative years. The long career

with RBI has provided him understanding of

macro-economic dynamics, functional aspects

of Central Bank and Development of Financial

Institutions.

On superannuation, engagement with Asian

Development Bank (ADB) as Management

Specialist-cum-Staff Consultant has provided an

understanding of working with multilateral

institutions. Concurrently, association with Citi

Bank as Consultant has provided

understanding of business strategies of

financial services institutions. Currently, Ghosh

is on the advisory and board level of various

Infrastructure and Housing Development

companies and Housing Finance Institutions.

Sakti Prasad GhoshEx- Executive Director (National Housing Bank,

wholly owned by the Reserve Bank of India)

Urban India has just begun its journey of

transformation. It is important that this

transformation should start with the people

who actually build our cities. It is my vision

that DBS Communities will participate in

building the foundations of a truly

egalitarian society.

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Parul Zaveri and Nimish Patel's practice

Abhikram (meaning 'Initiation' in Sanskrit) was

established in 1979 with a view to explore the

design directions, and processes, which make

the built environment, functionally,

psychologically, environmentally and spiritually,

more contextual and more comfortable for the

end-users. After 23 years of efforts in initiating

directions, approaches, process and use of

traditional materials, technologies and skills,

ABHIKRAM made room for PANIKA, through

which Parul and Nimish undertake works that

attempt to re-establish the relevance of

traditional decision-making processes in

contemporary context, and to conserve energy

through Passive Human Comfort Systems.

Nimish and Parul bring to DBS their belief in

the visionary thinking behind architecture of

India which captures the aspirations and uses

the capabilities of human resources for

transforming them into unimaginable future

realizations.

Nimish Patel and Parul

Zaveri of Panika,

Ahmedabad.Sr. Conservation Architects

To Parul and Nimish, the Built Environment

means:

Ÿ A response to human needs that must go

beyond function, economics and aesthetics

to cover human comforts.

Ÿ Human comforts comprise physical as well

as psychological aspects.

Ÿ Adequacy of physical and psychological

comfort leads to increased productivity,

better human relationships, and overall

peace and happiness.

Ÿ It is only when architects address these

issues that the contribution of the

profession to society is likely to increase

in geometric progression.

Need photo

Journey of 1000 days, 2009 - 2012


Vineet Chadha and Anjum Gupta are architects

and urban designers with nearly twenty years of

professional experience. They established

SAAR – Studio for Art and Architectural

Research in Bhopal. Vineet and Anjum, who

believe in the creative use of innovative, cost-

effective and eco-friendly building systems,

have designed, coordinated and executed

urban, architectural, interior and landscape

design projects. Vineet and Anjum have

extensive experience in large residential and

institutional projects and have won many

accolades for their work in different parts of the

country.

Vineet and Anjum are bring their passion and

experience in developing approaches to design

and construction that are most appropriate for

community housing in different climatic,

geographic and socio-economic situations.

They have designed Umang Lambha and

Umang Narol projects and also have developed

the housing typologies for DBS.

Vineet Chadha & Anjum GuptaArchitects & Urban Designers

We firmly believe that in the future that we

are all living into, community spaces,

collective processes and sustainable use of

materials and technology are vital for the

health of human societies and this planet. We

visualise DBS Communities as a leader in

this new genre of community housing.

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Sowmya HaranArchitect & Urban Planner

Sowmya Haran is an architect and urban

planner with over ten years of professional and

academic experience. Sowmya started working

on urban planning projects at Environmental

Planning Collaborative where she worked on

preparation of local area and city development

plans. As a Director of Alchemy Urban Systems

Private Ltd., which she co-founded with B R

Balachandran, Sowmya manages a variety of

projects.

Sowmya brings to DBS her understanding of

systemic issues in housing provision, and will

focus on Corporate communications, and the

research and development agenda of DBS for

influencing the national housing policy.

Ravi Iyer is an independent Management

Systems consultant with nearly twenty years of

professional experience. He qualified as a

construction technologist and is a certified Lead

Auditor in ISO 9000 and 14000. Ravi has

developed quality management systems for

varied functional areas such as marketing,

quality control, shop floor management,

purchase and inventory and human resource

management. He specialises in systems for real

estate development, construction, and

architectural design and engineering services.

As an expert who is extensively involved in

systems development, training and auditing,

Ravi is instrumental in developing systems for

DBS and in training the staff in its use. He is

working towards ensuring that DBS

Communities is a systems-driven organisation.

Ravi IyerConstruction Technologist

Journey of 1000 days, 2009 - 2012


Manish has and overall experience of 15 years

in S & M, Business development & Operations.

He has headed large teams of people in the

entertainment industry and successfully

established business processes from scratch.

His last stint was with E- city ventures, ZEE

group.

Sudarshan is an accomplished finance

professional with over two decades of

experience in Retail Finance, which includes

Housing, Auto and Consumer Finance. He has

held leadership positions in well know Financial

Institutes such as GRUH, Citi Group and Future

Group. His desire to make a change in the

socio-economic status for Base of Pyramid

clients, through affordable housing has evolved

to make him an important part of the core team

at DBS.

Manish PancholiDirector (Sales & Business), DBS

Sudarshan IyengarDirector, DBS

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SaathSaath is a non-governmental organization registered as a public charitable trust

in Gujarat, India. It has facilitated participatory processes to improve the quality

of life for the urban and rural poor and provide a platform for individuals,

institutions and corporate to partner with bottom of the pyramid communities.

http://www.saath.org

Tanya Infrastructure Private LimitedIt is a real estate company currently involved in sale of plots and development at

Sanand and Nal Sarovar.

Saar (Design and Execution)Studio for Art and Architectural Research is a Bhopal based firm working on

urban design, architectural design, interior design and landscape design

projects along with their supervision and execution. They have done projects like

Ispat industries, ICICI Lombard, Madhya Pradesh eco-tourism board, hotel

Hilltone and Hotel Recluse (Mt. Abu), Greenwoods country club, Drishti offset

etc.

Alchemy Urban System Private Limited.Alchemy is committed to the task of enabling the continuous positive

transformation of Indian cities by providing creative and insightful professional

services in the areas of urban planning, urban design and urban management.

http://www.alchemyurban.com

PanikaThe focus of works undertaken by Parul Zaveri and Nimish Patel through

PANIKA, which was established in 2002, is on re-establishing the relevance of

traditional decision-making processes in the contemporary context, and to

conserve energy through Passive Human Comfort Systems.

Our Partners & Associates

Mr. Sandeep Shah, Pruthvi Management Consultancy - PMC

Mr. R.G. Desai and Mr Siddharth Desai, Sarjan - Structural Engineer

Mr. Devang Shah, Kena Consultant - Structural Engineer

Mr. Apoorva Parikh, Electrical Consultant

Mr. Milind Mehta, Plumbing Consultant

Journey of 1000 days, 2009 - 2012


Media Coverage

Business Standard - April 1, 2011

DBS to offer 3,800 affordable housing

units in Ahmedabad

In what could give a fillip to the affordable

housing sector in Ahmedabad, DBS

Affordable Home Strategy Ltd., in

association with SAATH, an Ahmedabad-

based non-government organisation, is

set to launch a 3,800 residential housing

project in the Rs 4-10 lakh bracket.

To be launched under the brand name,

'Umang Vinzhol', the units will come up in

phased manner on the outskirts of the

city. According to BR Balachandran,

executive director, DBS Affordable Home

Strategy Ltd., the project will entail a

turnover of Rs 250 crore in the near future.

We are conducting a feasibilty study on

the project. However, we have been able

to successfully book all of 792 units in our

earlier project," said Balachandran.

Earlier, DBS and SAATH have launched

similar project 'Umang Lambha' with non-

government organisation (NGO) Ashoka

Foundation. Part of Ashoka Foundation's

Housing For All (HFA) program, the

project saw around 792 affordable

residential units being offered to end

users.

"We intended to offer units for people who

do not have a salary slip or statement and

find it difficult to avail loans. But for this,

we needed support of a developer with

land accessibility and an organisation that

could aggregate the end users. Which is

why we tied up with DBS and SAATH for

offering affordable housing," said Vishnu

Swaminathan, director, Housing for All,

Ashoka Foundation.

URL: http://www.business-

standard.com/india/news/dbs-to-offer-3800-

affordable-housing-units-in-ahmedabad/430500/

DNA - Friday, Mar 4, 2011

DBS plans 5,000 affordable homes near

Ahmedabad

DBS Affordable Home Strategy plans to

construct around 5,000 affordable homes

in the vicinity of Ahmedabad.

The real estate developer has partnered

with Saath Charitable Trust for the

affordable housing scheme at Lambha

based on Ashoka Innovators' Hybrid Value

Chain (HVC) model and has already

launched 2,400 units in the price range of

Rs3.5 lakh to Rs8.25 lakh.

The group is targeting lower income

people. "Although this group is in a

position to repay home loan EMIs they

find it difficult to qualify for formal sector

loans for want of income proof, address

proof and financial track record," said

Sudarshan Iyengar, vice president of DBS

Affordable Home Strategy.

He said that the company plans to come

up with around 5,000 more affordable

houses in the vicinity of Ahmedabad, but

did not mention the time line for the same.

The company has also launched

affordable housing scheme called 'Umang

Lambha' for the people at the bottom of

the family income pyramid. This scheme

is also based on HVC model and is

launched in collaboration Saath trust.

Valeria Budinich, vice-president of Ashoka

said that these type of HVC partnerships

are rapidly spreading the growth of

affordable housing in India and over

10,000 homes are being planned and

under construction in 6 cities, unlocking a

market potential of Rs400 crore.

"New alliances to design, build, finance,

market and scale up affordable housing

throughout India are now in place. Over

the next four years, Housing for All, an

initiative of Ashoka, will start new projects

based on this model in many states

across the country,” said Budinich.

URL: http://www.dnaindia.com/india/report_dbs-

plans-5000-affordable-homes-near-

ahmedabad_1515406

The Economic Times - Friday 10th February, 2012

Case study: DBS Affordable Home Strategy offers easy loans help poor own homes

DBS Affordable Home Strategy was launched in 2009 with the aim to create affordable dwelling units for the urban poor. "We wanted to create a company that focused solely on affordable housing and did not look at affordable housing as a side business," said architect BR Balachandran, who founded the venture with chartered accountant Dinesh Jain and real-estate developer Sanjay Shah.

The company is building two housing projects -- Umang Lambha and Umang Narol -- on the outskirts of Ahmedabad in Gujarat. Consumers choose between two models -- one room-kitchen or two room-kitchen in a community living format.

The units, which vary between 220 sq ft and 450 sq ft in size, are priced between Rs 4 lakh to Rs 9 lakh. These projects are targeted at low-income consumers, most of who are employed in the informal sector. To reach the target low income customers, DBS partnered with SAATH, an Ahmedabad-based NGO that has worked extensively with slum dwellers.

"Finance for consumers is what makes or breaks affordable housing," said Balachandran. While mainstream banks require income proof documents and a higher down payment, companies such as Micro Housing Finance Corporation (MHFC) set up in 2008, and Muthoot Housing Finance do not have such requirements.

This has helped turn affordable housing into a viable business proposition as organisations such as MHC began to lend to home buyers without insisting on income proof. However, Balachandran says this is just the proverbial tip of the iceberg. "Government needs to do more, not just in providing housing finance. Land reforms are urgently needed to keep costs low." DBS has launched a new project in Surat and plans to expand beyond Gujarat in six months.

URL:http://economictimes.indiatimes.com/markets/real-estate/realty-trends/case-study-dbs-affordable-home-strategy-offers-easy-loans-help-poor-own-homes/articleshow/11832334.cms

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After 1000 Days, we have learned that this initiative

requires lot of support from like minded people who are

willing to contribute something in this pursuit.

We invite you to join hands with us...

... whatever be your interest and expertise,

we envisage a role for you.

… contrary to more conventional investment strategies, no firm can do

this alone. Multiple players must be involved, including local governmental

authorities, nongovernmental organizations (NGOs), communities,

financial institutions, and other companies. Four elements — creating

buying power, shaping aspirations, improving access, and tailoring local

solutions —are the keys to a thriving Tier 4 market.

Each of these four elements demands innovation in technology, business

models, and management processes. And business leaders must be willing

to experiment, collaborate, empower locals, and create new sources of

competitive advantage and wealth.

9C.K. Prahalad and Stuart L. Hart, 2002 .

Journey of 1000 days, 2009 - 2012


This report is based on information from many DBS Communities' sources and has benefited greatly from inputs of many

contributors. The documentation would not have been possible without the contributions of several people.

Sanjay Shah elaborated on the background, context, strategies and experiences of the past 1000 days. This included the

challenges that DBS Affordable Housing Strategies Ltd. has faced, the lessons learnt and actions taken in response to

gaps and needs identified, and the processes and systems being introduced to enhance transparency and efficiency. He

also provided valuable comments and advice during the documentation period.

B R Balachandran provided insights into the strategies adopted for strengthening the approach and business strategy,

helped fill-in the gaps and elaborated on the DBS perspective on the policy and regulatory environments. Rajendra Joshi

elaborated on his and Saath's involvement with DBS Communities, the challenges faced by potential customers of

affordable housing and the innovative actions taken in response to the needs and challenges identified. He also provided

the reasoning and insights for the organizational structure of Griha Pravesh and how the community development initiatives

are expected to be delivered in the Umang projects. Vineet Chadda and Anjum Gupta explained the reasoning behind the

planning and design of the individual apartment units, clusters and site plan for Umang Lambha, and the challenges

encountered in finalizing the plans in accordance with the development regulations and site constraints. Nimish Patel

described the potential for making the experience of the owners and occupants more satisfactory through detailing and

strategic management of the development process in consonance with his and Parul Zaveri's design philosophy.

Sudarshan Iyengar expanded on the financial issues involved in the delivery of affordable housing and on the issues faced

by financing companies in loan processing for the home-purchasers in the informal sector. He also provided his

perspective on the potential impact of the Credit Camps and the facilitation support of Griha Pravesh on the affordable

housing eco-system. Rajnish Dhall of Micro Housing Finance Corporation Ltd and Manoj Vishwanathan of Home First

Finance Company provided inputs regarding their company's focus on affordable housing and shared their experiences to-

date with DBS Communities.

Dinesh Jain's strategy and systems for financial management have highlighted the importance of these elements for the

delivery of affordable housing. Manish Pancholi not only expanded on the management actions for enhancing efficiency

and minimizing costs, but was also instrumental in tracing and providing essential information.

Niraj Jani of Saath expanded on the actions for marketing of Umang Lambha, and the experiences from the Credit Camps

and Parivaar Pragati seminars, and provided details and data from the survey of 360 Umang project customers. Sowmya

Haran's documents provided details of ASHRAM. The endeavor was supported by Ravi Iyer who provided the background

material, context for several actions, and coordinated the preparation and production of the report. He has taken most

photographs in this report. Further, many others who were involved in the compilation of previous documents of DBS

Communities too have contributed indirectly to this endeavor.

Suresh Karpatiya and Manish Agravat of Kumbh Design handled the design and production

of the report, and patiently incorporated changes in the content.

The initial work for this documentation was undertaken by B R Balachandran and Ravi Iyer.

However, the responsibility for any errors and gaps rests primarily with me.

Sharadbala JoshiUrban Development Consultant

Acknowledgements

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1. Prahalad, C K. 2005. The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits. Pearson

Education/Wharton School Publishing, New Delhi.

2. Saath has supported the setting-up of Urban Resource Centres (URCs) as one-stop shops run by community

members in slum areas of Ahmedabad. For families that become URC members for a nominal annual membership

fee of Rs 125, the URCs link them to families with microcredit, schools, job training, medical care, infrastructure, and

with access to government entitlements and programmes. The aim of URCs is to transform service delivery to the

urban poor from the NGO model to a market-orientated approach.'3. Urmila' and 'Umeed' are placement based livelihood programmes that Saath introduced to train women and youth in

skills required for services in the business and domestic sectors, and then placing them in appropriate companies.

4. The Slum Networking Project in Ahmedabad was introduced as a partnership project between the Ahmedabad

Municipal Corporation, NGOs and the private sector. The Municipal Corporation provided in-slum infrastructure,

landscaping and solid waste management. The slum residents paid Rs.2,000 per house for getting individual water

supply and sewerage connections.

5. A Design Charette is an intense effort to solve any architectural or design problem within a limited time. The word is

used by the architectural and design community to describe any intense, on-the-spot design effort. In land use or

urban planning, a charrette involves intense and possibly multi-day meetings for consulting with all stakeholders

including municipal officials, developers, and residents.

6. The period from December 16 to January 14 when the Sun transits through Sagittarius is known as ''Kamurta” in

Gujarat. Traditionally, the belief amongst Gujaratis is that any auspicious activity initiated during the inauspicious

''kamurtas'' is likely to fail. Thus, Gujaratis avoid formalising significant decisions such as for marriages, buying and

selling of property and other assets, making important business transactions etc. during this period.

7. From Saath.

8. From note on “Insights from the DBS Communities Experience of Affordable Housing” prepared by B.R.

Balachandran, Executive Director, DBS Affordable Home Strategy Ltd, Ahmedabad. October 2011.

9. C.K. Prahalad and Stuart L. Hart, 2002. The Fortune at the Bottom of the Pyramid, strategy+business, 26, First

Quarter. Accessed from: http://www.cs.berkeley.edu/~brewer/ict4b/Fortune-BoP.pdf

Notes

ASHRAM Academy for Sustainable Habitat Research

and Management

CBOs Community Based Organisations

CEO Chief Executive Officer

DBS Design Build Serve

HFFC Home First Finance Company (Home First)

HFC Housing Finance Company

HFI Housing Finance Institution

MHFC Micro Housing Finance Corporation Ltd.

MFI Micro Finance Institution

NA Non-Agricultural

NGOs Non Government Organisations

NOC No Objection Certificate

RCC Reinforced Cement Concrete

SHG Self Help Group

URC Urban Resource Centre

Abbreviations

Dastavej Sale Deeds of properties

Griha Pravesh House Entry - Literally means first entry into a newly built house

Umang Happiness or Joy

Journey of 1000 days, 2009 - 2012


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Creating buying power, shaping aspirations, improving access,

and tailoring local solutions - the four elements of the commercial

infrastructure for the bottom of the pyramid are intertwined.

Innovation in one leverages innovation in the others.

9C.K. Prahalad and Stuart L. Hart, 2002.

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DBS Affordable Home Strategy Limited (An ISO 9001:2008 Company)

Regd. Office & Corporate Office:

Block No.130, Moje Por, Adalaj-Koba Road, Dist. Gandhinagar - 382421. Gujarat. India

E-mail: [email protected] | Web: www.dbscommunities.com

Tel.: +91-99099 84508/09

Ahmedabad Office:

1, Sunvilla, Hebatpur Road, Off. Sarkhej Gandhinagar Highway, Ahmedabad - 380054

Toll Free: 1800-123-6007 | SMS: “UMANG” to 56767

Other Location: SURAT

Business Strategy of DBS Communities

Design & Production of Community

Housing

CommunityHousingFinance

Community Development

Initiatives

Research & Development