Date post: | 26-Dec-2014 |
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Infrastructure Development Services
Assisted Living Business
The Demographics
2004 – 82 million aged 60+ 177 million in 2025Growth in elderly population – 3.01 %
Large sections of working population migrating to foreign countriesOut of home jobs
India’s top 20 cities, 10 % of Indian populationEarn >30% of India’s income, spend 21% 60% of surplus incomeThe upper-income classes in urban India - 47 million in 2009-10.
Source: NCAER Research
The Primary Research
Competitor Analysis
Dignity Lifestyle
Positioning “Not an Old age home”
Neral – 90 Km from Mumbai25 acre spread Present occupancy – 62Designed for 55+ people (men), 54+ (women)
30 bed Dementia care centre 24 hour care
Residents – Upper middle and Upper class
TypeArea (sq. feet)
Payment (Rs. Lakhs)
Refundable (Rs. Lakhs)
Non-refundable (Rs. Lakhs)
Assisted Living
Nightingale Blocks 1, 2 375 13 9 4
Nightingale Blocks 4 500 13 9 4
Nightingale Economy 180 9 5 4
Independent Living
Premium Cottage 500 13 9 4
Premium Cottage Short Stay 500 5 3 2
Pune – Kalyani Nagar – premium localityRs.18 crore project
Fully furnished 121 apartments1 or 2 BHK, studio apartments
Tie up with Ruby Hall Hospital Discounts, preferential access
ResidentsRetired bureaucrats | Parents of NRIs | Industrialists | Ex-bankers
Golden Nest
The Primary Research
Market Research
• Sample Selection Logic– Relevant Target-Segment– Have gone through the
selection procedure
• Quantitative Analysis – Factor Analysis– Software used: SPSS – Final Factors identified
Sample Number of respondents
50+ age group in Pune 30
Residents of Dignity Lifestyle 20
Residents of Golden Nest 30
Residents of Paranjape 25
Survey
Price
Facilities
Location
Recreational facilities
FGDs• 4 FGDs for each of the four samples• Objectives
• To find out the expectations from the old age facility• To find out the stigmas attached to Homes for senior citizens
Retired life feels aimless
Children don’t have time for me
Retirement doesn’t mean I’m unwilling to stay busy!
Focus Group Discussion
Stigmas associated
• Pity• Sympathy• Poor relation with children• Dependence on children• Reflects poorly on the children
Expected Attributes
• Engagement options: Movies, Restaurants
• Venues to socialize, find company (esp. for single adults)
• Medical Facilities important
Premium
Facilities
Dignity Lifestyle
Paranjape
Golden Nest
Old Age Homes
Provision of facilities is perceived as adequate
Perceptual Map
Premium
Resident Involvement
Dignity Lifestyle
Paranjape
Golden NestOld Age Homes
Opportunity• Currently no offering with High involvement• Unmet demand in premium category
Perceptual Map
Four Indian passions
• Residents organize activities– Higher resident engagement, vibrant atmosphere
• Target Segment– Upper and Upper Middle Class– Living in Tier I cities
Cricket Movies Food Culture
Tapping into the Indian Psyche…
Target• Food lovers• Those interested in cooking
Features• Restaurants• Gourmet cooking classes
Activities• Organizing, participating in cooking session• Restaurant management• Celebrity visits
Cuisine
Target• Cricket enthusiasts
Features• Big screen display of matches• Practice nets and field
Activities• Organizing matches, celebrity visits• Local community involvements
Cricket
Target• Film enthusiasts
Features• Private screens – 50 seat
Activities• Organizing movie screenings• Celebrity visits• Managing an extensive movie rental facility
Movies
Target• Art lovers• Foreign nationals as additional target
Activities• Conducting exhibitions of the residents’ artwork• Managing celebrity concerts• Cultural events for residents• Organizing classes for
• Art• Music – instrumental, vocal• Dance
Arts
Market Access
Word of mouth
Corporate
Viral
Channels
TV: Business channels
Business magazines
Web presence
Media Plan
Tiger Pataudi & Sharmila Tagore
Brand image: Sophisticated, energetic
Brand ambassador
options
Market Access
Perceptual Map
Brand Positioning
Premium
Resident Involvement
Dignity Lifestyle
Paranjape
Golden NestOld Age Homes
Mahindra: The League
Non-Refundable Payment Refundable Monthly Rent
Rs. 5,00,000 Rs. 10,00,000 Rs. 8,000
One Room Economy
Non-Refundable Payment Refundable Monthly Rent
Rs. 5,00,000 Rs. 10,00,000 Rs. 14,000
One Room Premium
1 BHK Floor Plan
Non-Refundable Payment Refundable Monthly Rent
Rs. 5,00,000 Rs. 10,00,000 Rs. 15,000
1 BHK
Non-Refundable Payment Refundable Monthly Rent
Rs. 5,00,000 Rs. 10,00,000 Rs. 20,000
2 BHK
Non-Refundable Payment Refundable Monthly Rent
Rs. 5,00,000 Rs. 10,00,000 Rs. 25,000
Cottage
Medical Services
Cardiac Block• Diabetes• Hypertension• Stroke
Orthopaedics• Arthritis• Osteoporosis• Osteomalasia
Nervous System• Dementia• Depression• Memory Disorders
Hospital Blocks
Fixed Cost Rs.
Cost of construction(buildings) 982,588,755
Recreation Facilities 130,743,494
Utilities 10,630,000
Medical costs 75,000
Total Fixed Cost 1,124,037,249
Variable Cost Rs.
Yearly Services cost 46,980,000
Total Variable Cost 46,980,000
Cost Sheet
Revenues
Occupancy In Rs. Total Rent
In Rs. Refundable
amount In Rs.
Non refundableIn Rs. Total
In Rs. Inflation Adjusted Income
In Rs. Total with
inflation adjusted rent
0.3 55,260,000 22,800,000 14,250,000 92,310,000 55,260,000 92,310,000
0.4 73,680,000 30,400,000 19,000,000 123,080,000 77,364,000 126,764,000
0.45 82,890,000 34,200,000 21,375,000 138,465,000 91,386,225 146,961,225
0.5 92,100,000 38,000,000 23,750,000 153,850,000 106,617,263 168,367,263
0.55 101,310,000 41,800,000 26,125,000 169,235,000 123,142,938 191,067,938
0.6 110,520,000 45,600,000 28,500,000 184,620,000 141,054,638 215,154,638
0.65 119,730,000 49,400,000 30,875,000 200,005,000 160,449,651 240,724,651
0.7 128,940,000 53,200,000 33,250,000 215,390,000 181,431,528 267,881,528
0.75 138,150,000 57,000,000 35,625,000 230,775,000 204,110,470 296,735,470
0.75 138,150,000 57,000,000 35,625,000 230,775,000 214,315,993 306,940,993
0.8 147,360,000 60,800,000 38,000,000 246,160,000 240,033,912 338,833,912
0.8 147,360,000 60,800,000 38,000,000 246,160,000 252,035,608 350,835,608
0.8 147,360,000 60,800,000 38,000,000 246,160,000 264,637,388 363,437,388
NPV Analysis
1 2 3 4 5 6 7 8 9 10 11 12 130
500000000
1000000000
1500000000
2000000000
2500000000
3000000000
In Rs. Cumulative InflowIn Rs. Capex
Year In Rs. Capex
In Rs.Cumulative Inflow
1 1,468,472,749 92,310,000
2 1,468,472,749 166,184,074
3 1,468,472,749 251,901,860
4 1,468,472,749 348,262,982
5 1,468,472,749 454,171,918
6 1,468,472,749 568,628,751
7 1,468,472,749 690,720,746
8 1,468,472,749 819,614,666
9 1,468,472,749 954,549,775
10 1,468,472,749 1,084,594,993
11 1,468,472,749 1,219,779,825
12 1,468,472,749 1,350,098,287
13 1,468,472,749 1,475,767,869
Annexure
Basic Costing and Revenue Analysis