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About Holcim
Low-cost housing
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About us
Holcim is one of the world's
leading suppliers of cement and
aggregates as well as
downstream activities such as
ready-mix concrete, asphalt
and construction-related
services.
From its origins in Switzerland it
has grown into a global player
with majority and minority
interests in over 70 countries
on all continents.
Today Holcim employs some
70‘000 people.
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Holcim – global by tradition
70 Number
Serbia
of countries Croatia
China
New Caledonia
Tanzania
60 Sri Lanka
Asia Pacific
Latin America
Poland
North America
50 Kosovo
Madagascar
Mauritius
Guinea
Iran
Malaysia
40 Macedonia
Thailand
El Salvador
Dom. Republic
Indonesia
Europe
Nicaragua
30 Guatemala
French Guyana
Azerbaijan
Austria
Venezuela Ivory Coast
Spain
20 India
Nigeria
Namibia
Hungary La Réunion
Czech Republic Fiji
Greece Haiti
Slovak Republic Caribbean Islands
10 New Zealand
Philippines
Morocco
Peru
Panama
Bangladesh
Mexico Ecuador Argentina Yemen
Netherlands Canada Costa Rica Chile Singapore United Kingdom
France Egypt Germany Brazil Italy Australia Russia
Belgium South Africa Norway
Switzerland Lebanon USA Colombia Cyprus Vietnam UAE
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1912 1920 1930 1940 1950 1960 1970 1980 1990 2005
Countries with operations of consolidated companies and those with minority interest 4
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Focus on core competencies
Mature markets
Emerging markets
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Balance between growth and mature markets
Mature markets
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Sustainable development is a key element of our
vision and mission
Sustainable development is a core
element of the vision and mission of
Holcim
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Triple bottom line integrated in our strategy
Base People
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Content
About Holcim
Low-cost housing
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... a few examples of “classic” CSR projects
25%
Social benefits
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Low-cost housing models according to target group
Focus of the model on: Social tier 1
Commercial solution Annual income p.c.:
> $20,000
Technical solution Population in billions:
0.75 – 1.00
Access to material Purchasing power in
billions: $ 15,000 –
Financial solution 20,000
Purchasing power in
billions: $ 15,000 –
Holcim-Gov., 18,000
Mi Casa, Ecuador
Mexico Prefa, Costa
Rica Social tier 1
galing Mason, Annual income p.c.:
< $1,500
Philippines
Population in billions:
House-for-Life, 4.00
LCH, Java, >$2 Purchasing power in
Sri Lanka
cost housing
<$2
Provivah, Holcim-GTZ,
Mexico Aceh, Indonesia
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Mi Casa - Holcim Apasco, Mexico
Project 1. To help people self-build to an acceptable standard
Objectives 2. To improve the availability of affordable construction material
3. To become the leader in the bag market
4. To maintain a close relationship with distributors and clients
Project
Overview Project History
history and
Project started in 1995, bringing together wholesalers, local
main outcomes,
geographical government and credit institutions
focus and target Launch of Mi Casa “reloaded” in 2005
group Main outcomes
Construction or improvement of about 400,000 houses in
Mexico supported over the last six years.
Geographical focus and target group
All over Mexico
People with a daily income of more that USD 3 per day
Project
Overview Project History
history and
main outcomes, Pilot project implemented to explore materials, workforce
geographical from January 2002 to June 2002.
focus Final development of project on company land in July 2002.
Creation of “Fundacion Procasa”.
Two models of housing were developed and built as part of
this project. CasaKit 01 (40 m2) y CasaKit 02 (46 m2).
Today only one model is produced (CasaKit 02).
Main outcomes
686 units of CasaKit 01 were built between April 2003 to
August 2003.
266 units of CasaKit 02 were produced until January 2005.
206 units of CasaKit 02 are currently being produced,
handover planned for February 2006.
Geographical focus and target group
Urbanization “Mucho Lote” in Guayaquil, property of the
municipality of Guayaquil.
People below USD 3 per day.
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CASAKIT - Holcim Ecuador
Budget and
Today 1.2 million USD are budgeted annually for PROCASA
expected
Holcim is perceived to be delivering a service to the community
benefits
Main Learning
Overview learnings It is possible to develop high quality products for people who otherwise don’t have access to
decent housing.
The houses can be produced at the real costs of a council house (low cost housing).
A simple way to respond to Government requirements is the creation of a foundation. An
example: PROCASA.
It is essential to control the costs in this kind of housing.
The product (house) needs to be adaptable to environmental requirements.
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House-for-Life project - Holcim Lanka
Project
1. To offer a housing solution to Sri Lanka‘s poor
Objectives
2. To establish a partnership with Ceylinco Grameen
3. To provide products and services to a so far unserved target group
Project
Overview Project History
history and
November 2004, Evaluation of partnership opportunity and
main outcomes,
preliminary project definition
geographical
Mid-December 2004, Signing of Memorandum of Understanding
focus and target
group Dec./Jan., Tsunami delays initiation of the project
Spring/Summer2005, Construction of first 7 houses in the context
of the project
Nov./Dec. 2005, First evaluation of the project
Main outcomes
First houses built
Partnership with Ceylinco Grameen established, evaluated
Next steps defined
Geographical focus and target group
Communities in the South of Colombo
Peope with in income of USD 3 per day and more
It is difficult for Holcim Lanka to gain funds through development agencies, however alternates
like ‘securitised housing’ partnership are promising.
Adding incremental funds to ‘House for Life’ project will not create a significant impact to
housing situation in Sri Lanka. We need breakthrough solutions.
Partnership with a networked, efficient and connected Micro Finance Institution will remain
critical to manage the retailing of the business.
Catering to diverse land sizes & design needs through engineering & construction expertise is
essential.
Sufficient resources to introduce technical advisory and project management to prevent the
escalation of costs due to delays & inefficient use of raw materials must be considered by
Holcim.
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Prefa - Holcim Costa Rica / Productos de Concreto
Project 1. Provide a high-value, engineered solution through innovation, based on cement.
Objectives 2. Develop the company brand equity and the prefabricated product image in general.
3. Increase the competitiveness in the construction sector providing environmentally friendly
products, reducing waste and speeding up construction.
4. Facilitate the access of low-income families to low-cost housing.
5. Foster employment generation.
Overview
Project Project History
history and 1965: Launch of new housing system, consisting of columns and
main outcomes, panels
geographical 1985: Introduction of pre-stressed columns and new joints
focus and target between the panels
group Casapac: Development of a solution that can be packed and sent
on a truck, including all material and components.
2000: New, and lighter Prefa system
2005: Elevated houses and two story prefab houses
Main outcomes
Offering of an industrial product of high quality plus additional
services. Industrialization of the construction process.
Achievement of an important relation with government.
Coverage of the whole country.
Program targets persons with more than USD 5 per day.
Budget and
Estimated sales for 2005: 36,000 concrete tons (4,500 houses)
expected
Expected sales for 2006: 40,000 concrete tons (5,000 houses), $5 MM revenue
revenue
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Prefa - Holcim Costa Rica / Productos de Concreto
Main Learning
learnings The housing deficit created a new market where the shortest construction time, the lowest
costs, the lowest level of skills required and, the lowest level of waste, were the key success
factors.
Proactive communication helped to handle initial negative perceptions regarding the
appearance of the material, that was so far primarily used in farms.
Overview
Extensive research and development was needed to improve the quality of the product in order
to meet the customers’ expectations.
The new Seismic Code recommendations in design and construction phases needed to be
implemented.
Durability and flexibility of the solution are the most important advantages of the system in
comparison with other options available on the market.
Engagement in a process to get a clear understanding of customers’ needs and wants have
changed the product dramatically and ensured the success of the project.
A permanent R&D program was crucial for product development.
Long-term goals must be set and the organization must provide an internal structure able to
support the strategy.
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Galing Mason, country-wide training program for masons,
Holcim Philippines
Project Objectives 1. To enhance knowledge and skills, and to promote the image of masons
2. To promote concrete technology and appropriate use of concrete products
3. To engage in partnerships with the government, the construction industry and NGOs to promote
and transfer masonry skills and to contribute to improving infrastructure
Holcim ‘galing Mason Training: Basic and advanced masonry skills training.The 7-day training program
Capacity building
is open to uncertified masons, offering skills training, competition, assessment, and skills certification.
and livelihood
Masons received tools and subsidy while they participate in the construction of houses, schools, and
creation
other community facilities.
Holcim ‘galing Mason Olympics: local regional to world masonry competitions. A showcase of local
masons’ skills through various levels of competition.
Type of training Holcim ‘galing Mason Award: Annual search for outstanding mason. Participants are nominated and
activities awarded based on their skills and level of dignity they have acquired and shared with family,
community, and society in their everyday life as a mason.
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Summary low-cost housing models Holcim Group
Project The housing deficit that is existing in all LATAM countries offers an opportunity to become
Rationale leader in the low-cost housing market sector while living up to social responsibilities and
tapping a yet unaddressed market segment with a high potential
Perceived
Opportunities Challenges
challenges / Exploring new markets with the opportunity Expansion of basic housing solutions
opportunities to tap a yet unserved market segment and Land issues in rural areas
the possibility of increasing the share in the Financing services offered to clients
low-cost housing segment Collaboration with providers of subsidies
Building of reputation Local technical skills
Pioneer role in low-cost housing in Program monitoring
combination with microfinance Up scaling of programs
Increasing customer base
Market Although there is a big market potential in relation to the population with less than USD 2
Component Market potential per day, most programs focus on people with USD 5 per day because it is more
practicable and financing is less of a problem. This approach, however, requires
accompanying measures to improve the situation of the population at the bottom of the
pyramid
Partners Holcim Costa Rica and Holcim Apasco run their Prefa and Mi Casa program without any
partners, while Holcim Indonesia partners with GTZ, Holcim Lanka with the National
Building Research Organization and Ceylinco Grameen. For ProVivah Holcim Aspaco
partners with the ProVivah Fund.
Available Subsidies are available to low-income families in Costa Rica and Mexico. In Mexico,
subsidies however, government programs are not sufficient to tackle the existing housing deficit.
No subsidies are available in Indonesia and Sri Lanka-
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Summary low-cost housing models Holcim Group
Technical
Type of solution The different initiatives offer either:
Component
offered a pre-fabricated housing solution or
incremental Do-It-Yourself (DIY)-building in the traditional way with technical advice
provided via the program.
Building
material used The different programs use a wide variety of building material including: cement,
aggregates, wood, steel, fiber-cement panels, aluminium, copper-PVC, tiles, pre-cast
sewage, compressed earth blocks, concrete frames and others
Most materials are sourced locally, in the case of Indonesia from local SMEs
Access to The distribution of the final product has a wide range from direct sales by the program unit
Distribution of
building
solution in the company for the urban areas and distributors in rural areas in Costa Rica and
material
distribution by specialized Mi Casa distributors in Mexico to distribution via the program
partners like in Sri Lanka.
The more successful program have a special unit that is also involved in distribution of the
final products.
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Summary low-cost housing models Holcim Group
Financial The programs of Holcim Lanka and Holcim Indonesia offer financial services (micro
Availability of
services credits) as a key element of their solution.
credit services Holcim Costa Rica offers credit services only to contractors, information about financial
services offered by other organizations is provided to the end-customer.
Mi Casa offers credit options via distributors and is evaluating other options in collaboration
Credit partners with an MFI.
Holcim Lanka partners with Ceylinco Grameen, a well-known and successful MFI.
Mode of
collaboration In the case of Sri Lanka, close partnership with Ceylinco Grameen, regulated by a MoU.
Credit options in other countries offered through collaboration with distributors.
Capacity Type of
building and training Promotional and technical brochures and booklets (Costa Rica)
livelihood activities Extensive technical advise on self-building (Mexico)
creation Conduction of mostly extensive training programs for different audiences, including end-
users (Costa Rica)
Running of an extensive training program for masons (Philippines)
Accompanying
Self-construction training to end-users, training programs on site
CSR activities
Provision of blue-prints of community facilities to be constructed
Support for income-generating activities
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Main learning/findings
Technical solution
The low-cost housing market requires a solution that offers the shortest construction time, the lowest price, lowest
cost, lowest level of construction skills required and the lowest level of waste and at the same time a high quality.
It is essential to offer solutions that allow incremental building.
Prefabricated building parts seem to be efficient for many low-cost housing programs.
Durability, flexibility and adaptability to local circumstances are other crucial success factors.
Overview
Internal organisation and stakeholder involvement
The company internal structure must be able to the support the strategy and implementation of a low-cost housing
program.
A special unit needs to be established to ensure the implementation of the low-cost housing program.
Financing, which is the main entry barrier for clients in this market segment, needs to be an integral element of any
low-cost housing program.
Low-cost housing programs will vary from country to country and must be based on a thorough understanding of
the clients cultural and social values.
Stakeholders’ (in particular house builders’) involvement in the design of the low-cost housing solution ensures the
meeting of needs.
Partnerships with NGOs and community organizations, in order to build trust, and with professional organizations,
in order to facilitate program implementation, are crucial.
Capacity building and livelihood creation
Training self-builder and clients in construction skills is essential in order to keep the prices for the final product down
and the quality high.
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Content
About Holcim
Low-cost housing
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Discussion
Questions?
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