Mahindra War Room

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


Rs. 5,00,000 Rs. 10,00,000 Rs. 14,000

One Room Premium

1 BHK Floor Plan


Rs. 5,00,000 Rs. 10,00,000 Rs. 15,000

1 BHK


Rs. 5,00,000 Rs. 10,00,000 Rs. 20,000

2 BHK


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