Project Report on

PORTABLE HOUSES IN INDIA

BY Ashish Kumar-R600210010 Bharat Dhall- R600210013 Deepak S- R600210014 Naarayen KAS- R600210030 COURSE: MBA-Logistics & Supply Chain Management

Project Submitted to: Mr. Sunil Barthwal Course Name: Marketing Management Course Code: MBCM 771 University of Petroleum & Energy Studies August-December 2010

DECLARATION

We, Ashish Kumar, Bharat Dhall, Deepak. S and Naarayen KAS students of MBA

(LSCM):2010 hereby declare that the project work entitled (Portable Houses in India) is a bonafide work done by us under the guidance and supervision of Mr. Sunil Barthwal. The work has not
formed part of any earlier studies for the award of degree/ diploma/ fellowship.

Place: University of Petroleum & Energy Studies Dehradun Date: 22-Nov -2010 Signature of the Students.

Acknowledgement
Firstly, we would like to extend our gratitude to Mr. Sunil Barthwal for having given this opportunity to explore our marketing knowledge at this early stage itself. This has helped us to find our position and excel further from the experience we have gained from this project. We would like to thank Er. N.J.L.Ramesh for his valuable suggestions and assistance regarding portable house We would also like to thank Mr. Arvind Kumar who helped us in getting the views of engineers at IOCL, Guwahati

Ashish Kumar Bharat Dhall Deepak. S Naarayen KAS

Table of Contents

CHAPTER I

CONTENTS OBJECTIVES

PAGE NO 6

II III IV V VI IX X XI

PRODUCT IDENTIFICATION SECONDARY DATA ANALYSIS PRIMARY DATA REPRESENTATION AND ANALYSIS MARKETING MIX FINDINGS OF THE STUDY CONCLUSION REFERENCE BIBLIOGRAPHY

7 9 13 19 21 21 22 23

List of Figures and Graphs

Fig.No 1 2 3 4 5 6 7 8 9 TITLE Comparison between traditional and modular construction Level of awareness among the people Sector that would suit portable structures Factor influencing people for opting portable buildings Usability of portable buildings in seismic zones Feasibility of portable buildings concept in rural area development Influence of portable buildings among different class of people Government regulations pertaining to the construction of these buildings Degree of safety of portable buildings over brick built buildings Page no. 9 14 15 15 16 16 17 17 18

OBJECTIVES

The objectives of conducting the study can be divided into two broad categories: Primary objectives: To provide a hassle-free, flexible and time saving method of constructing buildings. To provide a solution for low cost housing. To find a method by which the building is made re-locatable.

Secondary objective: To reduce the wastage of materials while constructing structures. To provide a solution for usage of environment friendly materials for construction.

PRODUCT IDENTIFICATION
PORTABLE / PRE-FABRICATED HOUSES
Portable / pre-fabricated buildings have become the most popular method of constructing buildings down in the western countries. This concept, also called as modular buildings, has been widely accepted both by the industrial sectors and domestic sector as well in the western countries and European countries. China has also been successful in exporting many kinds of designs of portable structures to the rest of the World due to its cheap labour. Keeping all these aspects in mind and also realizing the immense growth opportunities in construction industry which we are seeing at present times, we feel convinced that modular concept will definitely continue its success in India too. India has got all the facilities to manufacture and provide all the materials which are needed for constructing modular buildings. The concept of modular construction of buildings is used in almost every sector as follows: Administrative Office Construction Educational Institutions Medical facilities Assisted living Industrial uses Residential buildings Branch financial offices Government buildings General commercial offices & the list goes on so.

The three prime objectives that can be achieved by using the modular concept of building structures are Save Time Save Hassles Save Money The idea of portable/ pre-fabricated buildings has come into popularity in western and other European countries as well due to the growing hassles in using traditional construction techniques. Various external factors like high time consumption, fluctuations in material

costs, labour costs, and the effect of environment has demanded for a new practice of constructing building. The commercial sector in India has started to embrace the concept of pre-fabricated buildings since it has been become a fashionable commercial item besides it also offers them a cost effective way of having buildings constructed which can be re-located in future as well. This idea of modular buildings will be helpful for the middle class people to have their dream homes built at low cost. Various implications for commercial businesses like retail outlets, hotels, etc are the encouraging factors which will help this concept to grow steadily. The various factors which encourage using the modular concept of construction is as follows:

India stands out to be second fastest growing economy of the world and Indias
services sector growth standing out to be second highest globally [1]. India has its population with median age of 24.6 years [2]. Increasing competitiveness and confidence in unfolding business opportunities in India. In terms of purchasing parity, India is the 4th largest economy [3]. Consumer market in middle-class is of whopping 350 million [4]. Physical and social infrastructure development supported by incentives from both Central government and States as well. Availability of diversified infrastructure facilities. Sound banking system with the entry of international players encouraging various financial options. Ease in access to South Asian markets through large coastline. R&D, infrastructure, technical and marketing services rapidly developing. Governments disinvestment from its ownership business.

SECONDARY DATA ANALYSIS

Modular / portable buildings are those which are built up in a factory environment and then shipped to the site either as a single unit or into multiple units packed in a single unit which can then be unpacked and assembled at the site to build the entire structure. Modular buildings have a wide range of applications across all the sectors from building a temporary facility to making a permanent facility as well. [5] The process of making a modular building includes the following stages: 1. 2. 3. 4. 5. 6. 7. 8. 9. Identification of the buildings purpose. Time & Money. Identification of site. Identification of supplier. Identification of builder. Approval of plan by local authorities. Placing of order for portable / modular structure to the supplier. Preparing foundation on which the modular structure would be laid. Assembling of the modular structure on the foundation including wiring, plumbing, etc.

The biggest advantage of modular construction is its quickness and cost efficiency. Vagaries of monsoon and local work force dont limit modular construction. Modular construction will be very much helpful in saving time of construction between 30% and 60% which in turn reduce the investment involved in it [6]. The following illustration will be helpful in explaining how modular construction saves time.

Fig.1 Comparison between Traditional and Modular construction

Table: 1 Comparison of Modular Homes and Traditionally built homes Traditional Homes Modular Homes Traditional homes come under Modular homes follow same local building codes and approved approval process like traditional Building Codes by local zoning regulatory bodies. homes and are governed by same codes. Customization is possible in case Construction of these homes is houses are built by our own started only after the client selects Floor Plans / initiatives and not bought from the desired plan. Customization can Designs other companies or real estates. be done at the design stage. The quality of the product varies Modular homes are built in factory greatly since it is built on-site in environment which is controlled Maintenance all types of weather. Require more one by more precise techniques. Costs repairs and higher maintenance Additional insulation and energy costs. saving techniques are used. Value will increase over time and These homes are same as traditional can be improved to new owners homes and appearance wise its Resale value preferences. difficult to find its difference from traditional homes. The time taken to build these Normally it takes 8-14 weeks to houses are generally several construct modular homes since months together since everything foundation works and construction happens on-site and different works go on simultaneously at Time Frame phases cannot be undertaken different places. Weather has no simultaneously. Weather has a impact in this time frame except in greater impact. foundation works. According to the owners Modular homes enjoy the same preference the appearance of the freedom in customization like done Appearance house can be customized. in traditional homes. The entire process needs costly Assembly line technique reduces custom construction and requires the cost and time involved in more people and more time to construction. The effect of weather complete the work. Its vulnerable has impact only in the foundation Building Process to weather delays, vandalism preparation phase alone and not in costs, and price fluctuations in the modular structure construction raw materials to construct the which goes on in factory. buildings. Modular homes, manufactured Traditional homes, stick built homes, section homes, pre-built homes and site built homes. Aliases homes and pre-engineered homes. Aspects

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The benefits of using modular concept [7] of construction would be as follows Best Value for money High quality Peaceful process Speedy turnaround Lower ownership / maintenance costs Energy efficient techniques Re-locatable Good design at affordable price Resale value

Advantages of Pre-fabricated houses: Generally, sections of pre-fabricated house are manufactured in factory and then those sections are transported to the site where the foundation would be kept ready on which assembling of sections will begin. Pre-fabricated homes are also known by other name like modular homes, portable homes and mobile homes with little difference between them though the concept being the same. The following detailed descriptions explain the various reasons benefiting the usage of pre-fabricated houses. Speedy Construction: The construction of these houses is so quick that within two months of the order time the house will be ready. But the duration of constructing these houses also depend on the scale of the construction. Insulation: The quality of insulation of these houses walls is superior to traditionally built buildings since the latters walls sag over passage of time. Protection from bugs: Usage of timber is limited in pre-fabricated houses and so the troubles caused by bugs and other insects which cause deterioration in quality of the buildings are prevented. Equipped well to face natural disasters: As the usage of structural steel and other metallic parts is more, pre-fabricated homes are ideal choice over traditional homes.

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Environment-friendly: Prefabricated homes are constructed using materials which are recyclable which will be well received from people across all the sectors since environmental impact is concentrated more.

Analysis of costs involved in construction of traditional techniques: The important reason for welcoming the modular concept of construction is the increase of labour cost and raw material costs. The following table will show how costs have rose to almost 200% while considering 2006 and 2010. Parameter / Year Cement Bricks (4000 bricks) Sand (1 truck load) Mason Helper Cost in 2006 (in Rs.) 170 10000 4000 200 125 Cost in 2010 (in Rs.) 270 21000 5500 475 325

All the analysis that have been done on the secondary data has revealed that modular construction has got promising future in India which can be ascertained on getting favorable results from the primary data which needs to be collected and studied.

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PRIMARY DATA ANALYSIS AND INTERPRETATION

RESEARCH PLAN:
The research was conducted by getting feedback from different group of people like engineers, students, businessmen and faculty members across India through questionnaires. The questionnaire had closed ended questions which were designed in a view to bring out the preferences of people for portable structures which helped in quantifying the data. SAMPLE UNITS: Engineers, students, businessmen, faculty members and other professionals were taken as sample units. Respondents from different parts on the country were taken into the consideration to get a broader view of the concept. The respondents were from Chennai, Kolkatta, Ahmadabad, Pondicherry, Bihar, Dehradun and Delhi.

INTERVIEW WITH CIVIL ENGINEER AT PONDICHERRY:

Er. N.J.L.Ramesh Giotech & Structural consultant, Approved valuer. M.Tech Advanced construction technology, MBA Project management, Contact no: +91 94433 37023 An interview with civil engineer Mr.Ramesh was very helpful in getting an idea about the concept of portable buildings in India. From the conversations it was inferred that these type of buildings are feasible in India and the government norms permit the construction of prefabricated buildings. The structures are resistant to earthquakes when compared to conventional buildings. These structures can be extensively used by government for rural development since the cost involved will be low. According to Mr.Ramesh, a scheme which was introduced by government of Tamil nadu for rural development by giving every rural family a sum of rupees 1 lakh was not very successful. Soon after this scheme was introduced, the prices of cement, bricks and sand went up drastically which didnt serve the sole purpose of rural development. People also did not utilize the money fully for construction rather they built a house with substandard materials for a lesser amount and then utilized the remaining for their personal use. If government had gone in for this concept of portable buildings, the purpose would have been solved and the cost also would have been less. He also added that this concept has not been experimented fully in India and hence an extensive advertising of the advantages should be made to instill confidence in public to go in for this type of houses and if this concept was successfully introduced, it would be a revolution in the Indian construction industry.

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REPRESENTATION AND ANALYSIS:

By interpreting the data from the filled in questionnaires, the main aspects which were ascertained were, a.) b.) c.) d.) e.) f.) g.) h.) Level of awareness among people about portable buildings Sector that would suit portable structures Factor influencing people in going for portable buildings Usability of portable buildings in seismic zones Feasibility of this concept in rural area development Influence of portable buildings among different class of people Government regulations pertaining to the construction of these buildings Degree of safety of portable buildings over brick built buildings

By plotting a graph for each of the above factor, the feasibility of portable buildings in India is ascertained. A.) Level of awareness among the people

AWARENESS AMONG PEOPLE ABOUT THE PRODUCT

3%

36% 61%

High Medium Low

Fig.2 From the chart it can be concluded that most of the people are either not aware or partially aware of this product. This shows that the product is not very much pronounced in India and introducing this product in India can turn out to be a good innovation in the construction business.

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B.) Sector that would suit portable structures

SECTOR SUITABLE FOR PORTABLE BUILDINGS

11% 24% 12% 25% Government Industrial Commercial Residential 28% Educational

Fig.3 From the feedback obtained from the respondents it seems that this product can be used for residential, commercial or industrial purpose since all the three sectors have the same level of acceptance among the people. C.) Factor influencing people for opting portable buildings

FACTOR THAT WOULD INFLUENCE PEOPLE IN CONSTRUCTING A BUILDING

19% 37% Time of construction Cost of Construction Flexibility 44%

Fig.4 Flexibility and cost are the two dominating factors that people find it important for going in for a portable building instead of conventional brick type buildings.

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D.) Usability of portable buildings in seismic zones

USAGE OF PORTABLE BUILDINGS IN SEISMIC ZONES

8% 30% 21% STRONGLY AGREE AGREE 41% DISAGREE STRONGLY DISAGREE

Fig.5 From the survey it is found that about 60% of people feel these buildings can be effective in seismic zones which is a positive note for this product to be introduced in area like Gujarat where the threat of earth quakes are more. E.) Feasibility of portable buildings concept in rural area development

FOR RURAL AREA DEVELOPMENT

0% 7% 10% YES PREFERABLY 22% 61% MAY BE CAN'T SAY NO

Fig.6 The above graph clearly says that these structures can be effectively used by the government in rural development as the cost is low and the time of construction is also very less.

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F.) Influence of portable buildings among different class of people

SEGMENT OF PEOPLE WHO WOULD PREFER PORTABLE BUILDINGS

5% 24% 27% 12% 32% High Class (HC) Upper Middle Class (UMC) Middle Class (MC) Lower Middle Class (LMC) Lower Class (LC)

Fig.7 From the above chart it is found that these buildings will have a good response from middle class and lower middle class people compared to that of high class people. G.) Government regulations pertaining to the construction of these buildings

DO GOVERNMENT REGULATIONS PERMIT THESE BUILDINGS

80 70 60 50 40 30 20 10 0 YES 25 75

NO

Fig.8
From the response of people and feedback from engineers it can be concluded that government does not lay any restriction on the construction of these houses if built as per the building codes.

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H.) Degree of safety of portable buildings over brick built buildings

SAFETY OF PORTABLE BUILDINGS OVER BRICK BUILT STRUCTURES

17% VERY HIGH 35% 35% 11% HIGH SAME LOW VERY LOW 2%

Fig.9
From the above chart it is inferred that 50% of people feel that portable buildings are safer than or equally safe when compared to conventional buildings but the remaining 50% of people feel that these buildings are not so safe.

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MARKETING MIX
PLACE:
Place is one the most important component of marketing mix which plays a major role in making the launch of any product successful. Since the construction of portable buildings needs land area, it is wise to introduce this product in the developing areas of class B cities since the land available for construction is comparatively high when compared to class A cities. Since certain high class people would like to build a rest house or forest house, a customized version of these houses can be provided to them with all facilities like air conditioning and interior decorations at a comparatively higher price. This version would be a niche market.

DISTRIBUTION CHANNEL: The construction of these buildings need expertise and hence the customers can contact the manufacturer directly for building a portable house. Customers can just login to the internet, customize their houses and get their houses built within a month. By dealing directly with the manufacturer the cost comes down and the time of construction will also be very less.

PROMOTION: This product can be promoted by giving advertisements through print media, electronic media, visual media and word of mouth. Print media: Advertisements can be given on news dailies and weekly and monthly magazines like THE Masterbuilder and NBM&CW which would attract engineers and architects and in turn will try to promote this product. Visual media: Television advertisements will come in handy since it will reach a larger mass of population and the gist of construction activities can be easily conveyed.

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Electronic media:

In the present scenario, the electronic media like internet has reached almost all class of people and hence online advertisements can also be a powerful tool in marketing the product. Online magazines can also be used in marketing the product. Some of the sites having information on portable buildings are www.karmod.eu www.constructionweekonline.in www.minaeanindia.com

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SUMMARY OF FINDINGS
From the interview with engineers and survey conducted through questionnaires the following were found: Portable houses can be used for residential and commercial purpose. They can be extensively used by government in rural development. Middle class and lower middle class segments can be focused while marketing the product. People feel that the safety of portable houses is low when compared to conventional houses. LIMITATIONS OF THE STUDY The sample size was low and hence a concrete conclusion was difficult to arrive at Since the awareness among the respondents about the product was low, the responses were not very accurate. CONCLUSION Our product is capable of capturing the Indian market in near future by creating awareness among the people about the advantages of the portable buildings. Since the cost would work out to be low, it will definitely have a positive response from the middle class segment of people. The safety of these buildings should be projected clearly among the people since they feel that safeties of these buildings are low when compared to conventional buildings.

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Reference
[1],[2],[3],[4] 13th AsiaConstruct, Indian Construction Industry (2006-2007), Construction Industry Development Council, India. [5] - http://www.wisegeek.com/what-are-modular-buildings.htm [6] - http://www.modtech.com [7]- http://www.modularcenter.com/why_buy.php

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Bibliography
http://www.wisegeek.com/what-are-modular-buildings.htm http://www.modtech.com http://www.modularcenter.com/why_buy.php http://www.dare.co.in/opportunities/infrastructure-logistics/the-business-of-prefabricatedstructures.htm http://www.karmod.eu http://www.masterbuilder.co.in/ci/487/Modular-Building/ http://www.masterbuilder.co.in/ci/485/Modular-Buildings/ http://www.masterbuilder.co.in/ci/485/Modular-Buildings/

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