1. What makes Nagesh Battula entrepreneurial? Is the opportunity of eco-habitats a large enough opportunity?

2. What makes Project Damergidda different? What should be Organo's marketing strategy for Damergidda?

3. What are the challenges in making communities sustainable? How was Organo addressing it? What more could they do?

4. Should Organo venture into more affordable housing projects? Or should they continue to target the affluent population?

5. What factors should the Organo team eliminate, reduce, raise, or create for its upcoming affordable eco-habitat projects?

Ahaana Mahanti | Devidutta Mohanty | Raj Krishnan Shankar | D.V.R. Seshadrl ORGANO: MODELLING SUSTAINABLE COMMUNITIES THROUGH ECO- HABITATS* India was gradually lifting its COVID-19 related restrictions in the middle of October 2020, when Nagesh Battula, Managing Director and Rakesh Koti, Head of Sustainability at Organo decided to regroup with the core team to deliberate on their plans of acquiring land for their new eco-habitat project, which they called \"rurban tribe\". Looking back at their success with Organo Naandi, their first venture in eco-habitats1 that combined the elements of urban refinement and rural ethnicity, followed by Organo Antharam which was expected to be launched in August 2021 Battula and his team were contemplating ways to enter a new segment that was younger, had a refreshing perspective on the new way of life and settling into the pandemic-induced work-from-home culture. The concept of eco- habitats was still nascent in India and was a luxury that only a miniscule percentage of India's affluent population could afford to invest in. Battula wanted to disrupt this market for eco-habitats by replicating in the future, the success of Organo's two earlier projects in ventures that would be more affordable to the masses. The team however, wanted to restrict itself to a niche audience, not necessarily characterized by their status or wealth, but rather by their values and willingness for living in harmony with nature. Cities were choked with a rapidly increasing population, with grave implications for the environment and human health. According to Battula, counter-urbanization seemed to be the only viable solution to relieve the cities from the stress of an ever-growing population and all its accompanying ills. Battula and Koti were excited to explore avenues for disrupting the alternate real estate market2 with their radically different business model. After several months of industrious efforts invested in choosing a suitable project site for "rurban tribe\Rangareddy district of Telengana, about 50 kilometers (kms) from Hyderabad. Acknowledging the initial high capital investments in land, costs incurred due to delays in starting up due to labyrinthine governmental approval processes for such a large real estate project, and complexity of nature- inspired architecture that was to be deployed at Organo Damergidda, Battula thought to himself: How do we thrive economically while delivering the same benefits to our new target market segment at a much lower cost than what we did with our first two developmental projects? What elements from Naandi and Antharam could we compromise on for the new project and how do we compensate for it from the perspective of our customers? How can we integrate our climate-responsive solution for living spaces with this new target market segment, characterized by a higher population density? What should be our marketing strategy for this new segment? Setting an ambitious deadline for the project launch by early 2023, myriad questions crossed his mind as he was beginning to envision in his mind's eye, the unfolding of plans for the new segment. THE INCEPTION AND EVOLUTION OF THE ORGANO BRAND Founded in 2016 by the directors of Fountainhead Design (FHD) Group3, namely, Nagesh Battula and Vijaya Durga, Organo came into being with a vision to provide an authentic living experience in a community environment that was not only eco-friendly by design but was also technologically progressive, combining the elements of a sense of community, comfort, culture, and convenience. Organo was a product of their realization that they no longer wanted to just design buildings, but instead design living solutions to address real problems, putting people at the center and organizing design, real estate, food, and services around them. With over 20 years of experience in the construction industry, Battula ventured into the very niche alternate residential real estate sector in the country, with the launch of Organo Naandi, Organo's first and an award-winning sustainable township project'. He envisioned creating replicable community development models built on the principles of triple bottom line5 and net-zero6 thinking and living. Organo was managed by a group of architects, designers, and visionaries who brought in years of subject-matter expertise across varied topics (Exhibit 1). Their efforts were essentially channeled into designing, building, and developing sustainable eco-habitats. The adverse effects of urbanization characterized by polluted environments, genetically modified food, densely populated areas, and a fast-paced stressful life, were visible for all to see. Battula believed that the solution out of this toxic extant real estate approach lay in facilitating reverse migration, i.e., providing opportunities for people to go back to the roots. The task of the Organo team was to formulate new ways of living that were in harmony with nature, where the residents had access to healthy natural food; clean water; safe, quiet, and peaceful environment; spirit of community; and fresh air to breathe. The ideation process involved defining the customer persona, conducting in-person consultations with potential customers, customizing product design, assessing financial feasibility from the customer perspective, identifying, and addressing potential concerns relating to commuting, such as travel time, as well as affordability concerns. In the pandemic-induced 'new normal', the ecohabitat had to seamlessly integrate co-working spaces within the living spaces while also setting a clear boundary between working and living. The core philosophy at Organo was 'Samavriddhi' or 'prosperity for all'. The Organo team took responsibility for the needs of all stakeholders in the community and the environmental concerns that were likely to impact them. For one, the modern urban individual was confronted with health-related challenges due to increasing consumption of toxin-laden foods. Therefore, at Organo, organic agriculture was at the heart of its ecosystem where food was grown with natural farming techniques. Careful attention was given to flora and fauna within the community to ensure their growth, leveraging their natural cycles. Community members came together to participate in the collective farming processes and took charge of creating a self-sustaining environment. The inhabitants were made to feel important stakeholders in the process of maintaining their eco-habitats and preserving nature. They were not just living in the ecohabitat; the investment in their homes created a ripple effect beyond the community to the neighboring villages and empowering them. Simplicity, collaboration, ownership, perseverance, and empathy were the five core values that guided the Organo team in addressing various problems that they encountered along the journey. Important principles that defined its working included creating synergies, taking collective responsibility in delivering value, adapting to the changing environment, and empathizing with the residents and community members without prejudice. Project Naandi Organo Naandi was a manifestation of the team's efforts to promote a spirit of collective living in harmony with nature and with the luxury of a modern lifestyle. Naandi was located on the outskirts of Hyderabad, at Aziznagar, in Moinabad Mandal on a plot of land sprawling across 36 acres in the lush green bioconservation zone with a total of 73 units (about half an acre per unit). Twothirds of its total area was allocated for collective farming, where Naandians were welcome to join the farmers in the farming activities. About one-third of the land in the Naandi layout was designated for personal farming, where residents could farm independently in their backyards. Pre-COVID-19, there were 33 families residing at Organo. By the end of 2020, in no small measure propelled by COVlD-19 and its attendant drive to live healthy lives, this number swelled to 50 families living on the layout full-time, and the rest of the homes were occupied during the weekends. At Naandi, the residents were professionals by the weekday and community farmers by the weekends where they could grow their Own fruits and vegetables, participate with the community to raise cattle for milk, and indulge in nature's gift of serene pockets of mini forests, landscaping, and water bodies that were habitats to several species of birds, animals, insects, and aquatic life. Each Naandi home was a product of latest high-performing building science and home technology, skillfully combining the outdoor and indoor space to create an experience of being integrated with nature. Characterized by large windows, open halls, sliding doors facing the farm, patios, balconies, and terraces, Naandi was positioned like a get- away destination for its residents and yet was a home! (Exhibit 2) Due to high-end features and consequently high development costs, Naandi yielded a margin of about 10% to the developers, as against typical margins of 20% that characterized most real estate development projects. The ticket size7 for the Naandi project was approximately INR 30 million (about USD 400,000). Koti reflected on those early days: The journey wasn't easy. The concept was nascent; nancial institutions wouldn't support an idea as it was a radically new concept. We had to rely on raising capital from the amounts we received through advanced booking after the registration of the project, which meant offering discounts for the homes sold during the launch phase. To have our projects completely pre- booked, our potential customers had to trust us. in the initial stages, we put in about iNR 50 million from our own pockets. Project Antharam The success of Naandi, lessons learnt from that project including the myriad challenges within the community once the homes were handed over to the residents, and the desire to develop the eco- habitat segment in the alternate real estate market, nudged Organo to venture into cluster homes in its next project at Antharam, allowing for relatively higher population density per acre of land - three units per acre across over 50 acres of land, translating to a total of 150 homes. Getting necessary approvals for Antharam was not as onerous as Naandi, due to successful track record and the substantial learning from that first project. The team respected the land topology in Antharam and wanted to design homes inspired by the ethos of indigenous Indian village life. With an intent to promote biodiversity, about 25% of the Antharam layout was earmarked for afforestation with plants native to Telanga na state. With advice from experts, thousands of trees, plants, and medicinal herbs were grown, offering yearlong greenery to the residents, and inviting butterflies, birds, bees, peacocks, and ducks to thrive in this biodiverse community. Surrounding Antharam were four other villages within a five-kilometer radius. Prior diligent research for Project Antharam helped reveal several short-term and long-term interventions needed to ensure Symbiotic co-existence between the urbanites moving to this eco-habitat and the local villagers. Organo collaborated with the villagers who were primarily into farming cotton, foxtail millets, jowar, maize and a few vegetables, to supply their needed produce to the community's residents. In addition to the farmers, nearly all the staff at both Naandi and Antharam were employed from neighboring villages and upskilled for tasks such as cleaning, cooking, housekeeping, and other chores, helping them to earn a decent livelihood for themselves, while helping the residents live comfortable lives. Residents at Organo Antharam enjoyed several additional benefits within the community. These included a therapeutic spa; an organic farm store that sourced items such as desi ghee, butter, paneer, grains, millets, etc., from local farmers; access to herbal gardens with medicinal herbs such as Ashwagandha (Indian ginseng or Winter Cherry), Pancha Tulasi (a unique blend of five species of Basil), and Shatavari (a member of the Asparagus family); plush guest suites; a bio-pool for swimming; a state-ofthe-art gym; play grounds; tracks for cycling and walking; etc. The launch price of Antharam was projected to range between INR 20-30 million (about USD 250,000-400,000). About the same time as Antharam, a third project had crystallized at Kandawada, across 40 acres of land, about 50 kms from Hyderabad. This eco-habitat was conceived to have 100 homes, with each home spread across 4950 square feet (sq. ft.) (about 0.11 acres) and an additional 800 sq. ft. allocated for personal kitchen gardens. Each house at Kandawada was expected to have enough living space for three generations living together in a family. The Antharam and Kandawada projects were expected 7 The amount of money required to be invested in real estate depending on the size of the unit being sold. to generate about 25% margins for the developers, largely attributable to the learnings from the Naandi project, leading to more economic design and construction practices. Organo aimed to continue to disrupt the alternate real estate market through its future projects that were at the ideation stage. These too were eco-habitat projects with features similar to Naandi, Antharam and Kandawada, but targeted to the market segment looking for more affordable homes. To achieve these objectives while being financially viable required increasing the number of homes per acre to achieve economies of scale. Battula believed that 'rurban tribe' at Damergidda would herald a shift in the eco-habitat market, with more potential customers evincing desire for such salubrious living spaces, forcing leading real estate developers to pivot and provide such offerings. SAPTHAPATHA - THE GUIDING PRINCIPLES AT ORGANO Organo's approach to sustainable living was built around processes with seven layers that were intrinsically linked and worked independently and interdependently. These seven strands of sustainable development were called 'Sapthapatha,' which encompassed food, water, air, earth, energy, shelter, and people (Exhibit 3). These became the guiding principles at Organo to reduce the community's environmental footprint through measurable metrics across energy consumption, solar water heating, waste management, material usage, etc. (Exhibit 4). The eco-habitat also had its own 'Goshala' (cow shelter) where desi (home-bred) grass-fed cows were raised and milked. The community had access to fresh milk from the Goshala. Organic waste from the farms was used as fodder for the cattle. At each Organo project, food was to be grown without using any pesticides and fertilizers for the crops, and in the case of dairy products, the farm animals were to be raised without the use of antibiotics, growth hormones, and inorganic feed. Indigenous methods of cultivation such as companion cropping3 and permaculture9 were deployed for food production within the community. The farmers pursued several time-consuming but environmentally friendly measures such as covering the top surface of the soil with coconut fiber to improve water absorption and retention. Such practices helped grow bountiful crops in the arid soil, thus enabling the farmers to overcome several natural limitations. Naandi was located in a water-scarce area. It was located on a high terrain area. Consequently, rainwater quickly drained out of the site. Despite this terrain, several successful interventions were made to meet the daily water requirement within the community from subterranean aquifers and harvested rainwater. Water was conserved and recycled. Rainwater was harnessed to recharge artificially created aquifers\". The main source of water at Naandi was rainwater and ground water. The Naandi site was designed to hold 90% of 55,119 kilolitre of rainfall it received in a year. Contour trenches were created to help water spread evenly along the project site. Swales and ponds with a 3 Growing various crop species in close pr0ximity to each other that will benet each other including deterring pests, enhancing flavor, improving yield, xing nitrogen in soil, improving growth, etc. 9 An agricultural design framework in which agricultural ecosystems have the diversity, stability, and resilience of natural ecosystems that involves integration of land, resources, people, and the environment through mutually beneficial synergies. It is a closed-loop zero-waste system in which people are provided with food, energy, water, shelter and other -..-L.._!_I __._| _..' __-;.._!_I _......J- 2.. .. -....1__t_...l..l.. -___'-_ capacity of about 2 million litres of water were strategically located in the layout, which helped to maintain the subterranean aquifer water levels during summers. Through these measures, all the 73 units at Naandi had no dependence on any external sources of water to meet their daily needs. A tunnel draft system was used to cool the interiors of the homes. A huge tunnel draft using underground pipes of 900 mm diameter ran all around the layout as a ring. These underground pipes could be accessed through manholes at the upper levels. There was an air inlet chamber through which air was sucked into the pipes. The tunnel was five meters below the ground. The air in these pipes was cooled down due to the cool earth surrounding the pipes. The resulting cool air was let into each home through individual air handling units (AHUs)11. Self-reliant 100% net-zero clean-tech energy systems using solar power were designed and installed to meet the community's needs for energy. The solar panels at Organo collectively produced about 3310 Kilowatt-hour (kWh)12 of solar energy daily. This translated to roughly 1,200,000 kWh of electrical energy annually. A biogas plant in the community used the cow dung from the about 30 cows on the layout, to produce methane, which was also used to produce about 24 kw of electrical energy and to provide cooking gas to the homes. The residue from the biogas plant was used as a fertilizer for the crops. Compared to other real estate projects connected to state electricity grids, Organo Naandi, by entirely relying on solar panels and a biogas plant, averted an annual emission of about 900 metric tons of C02 into the atmosphere. Organo Naandi was net positive with respect to electrical energy consumption. On average, it exported 200 kWh/day of energy back to the grid. At Naandi, a state-of-theart sewage treatment plant (STP) using Sequential Batch Reactor (SBR) technology was installed. The system followed an aerobic process where fresh air was supplied to the sewage water continuously for the bacteria to break the sewage down using blowers that operated for 6-10 hours daily. This system was very energy intensive. The treated water was used for horticulture, to keep the layout verdant green. Learning from Naandi, the Antharam site explored a new type of STP technology called Eco-STP to minimize energy consumption through a gravity-based system. The natural digester model was designed to mimic the digestive tract of a cow. An anerobic13 bacteria catalyst from the cow dung substrate was added to break down the organic fecal content from human sewage into treated water. The sewage was converted into water, gas, and very little sludge. Two additional layers to remove E. cofi, helped in the disinfection of the treated water. The entire system could be installed underground and covered on the top to minimize chances of foul odor emanating from the STP. In this system, energy consumption was minimal, required only for the pumping of treated water from one place to the other. This was in sharp contrast to significant energy needed for running the SBR STP system at Naandi. At Organo, the welfare and healthcare needs of the residents were of utmost importance. There were walking and cycling tracks surrounded by a bio-diverse forest and medicinal plants, which ensured fresh air and fostered a healthy exercise routine. A sense of community and well-being was built through exchange of art, culture, spiritual practices and sharing common resources. Living in a community of like-minded individuals nurtured and encouraged people to embody the 'Sapthapatha' system. The driving belief within Organo was that every individual's choices within their local communities, as well as at the state and the national levels impacted the health of the environment. DISRUPTING THE ALTERNATE REAL ESTATE MARKET The real estate sector in India was projected to reach USD 1 trillion in market size by 2030, up from USD 200 billion in 2021, contributing about 13% to India's Gross Domestic Product (GDP)14. The maturing residential real estate sector was witnessing emerging formats characterized by product differentiation based on demographic needs, innovative typographics, and customized facilities across segments. The alternate residential asset class in India was poised to grow exponentially over the next decade, fueled by emerging needs, changing preferences and purchase motivations of various segments. According to a 2018 report by Meraqi Advisors, some of the niche categories emerging across Tier I cities in the alternate residential real estate market included student housing, micro units, and senior housing's (Exhibit 5). These segments were being aggressively pursued by developers, investors, and private equity funds due to potentially higher margins compared to traditional real estate classes. Bengaluru, Chennai, and Hyderabad in southern India were expected to account for about 25% of the total addressable market (TAM)16 for the alternate residential realty sector, which was projected to touch USD 4.3 billion by 2022. Green buildings were another segment in the real estate market that promised reduction in energy- related emissions and presented a tremendous business opportunity. In 2020, buildings directly contributed 5.9% of global energy related Greenhouse Gas (GHG) emissions. With the inclusion of indirect" and embodied emissions, the contribution shot up to 40% of global energy-related GHG emissions. There was a steady increase in this percentage across various countries, pointing to the importance of decarbonizing the buildings and construction sector. By 2020, 136 countries had included buildings and construction sector in their Nationally Determined Contributions (NDCs)20 of GHGS. In a report published by International Finance Corporation, the green buildings segment was estimated to turn into a USD 24.7 trillion investment opportunity by 203021. East Asia, Pacific and South Asia were slated to attract an estimated investment of USD 17.8 trillion in this segment. The business case for green buildings arose from the proven reduction of operational cost of up to 37%, 14 India Brand Equity Foundation (IBEF). 2021, December 17. Indian Real Estate Industry. https://www.ibef.org/industry/real- estate-india.aspx. Meraqi Advisors. (2018, July 3). India's alternate residential realty sector looks at USD 4.3 billion investment, Bengaluru, Chennai and Hyderabad account for 25% of it', reveals Meraqi's latest research report 'Emerging Residential Niche Products' [Press Release]. https://meragiadvisors.com/press-release/emerging-residential-niche.pdfapart from a higher sale premium of about 31%, higher rental income of up to 8%, and a noticeably faster sales cycle22. This inherent enhancement of value was due to the significantly reduced environmental impact of green buildings compared to conventional real estate projects. Battula bet on exponential growth in demand for self-sustainable communities as people started expressing interest in living away from crowded cities, especially after the pandemic, when working, learning, and transacting from home started getting momentum. He was looking to invest about INR 9 billion (approximately USD 120 million) in subsequent eco-habitat projects. He planned on acquiring over 1800 acres of land to develop sustainable township projects catering to different segments. Initially, he wanted to launch new projects in Hyderabad due to his familiarity with its real estate market, as well as for practical reasons such as more people migrating to the city in search of better jobs, increasing affluente, a relatively lower population density compared to other urban cities in the country, and ample land available on the outskirts of the city. In course of time, he wanted to take this concept to Bengaluru. Battula compared the benefits from living in an eco-habitat vs. living in an apartment in the city: In typical real estate investments, the project value is usually derived from the speculative nature of the land prices and the developments that transpire during the project. In our eco- habitat projects, there is very little speculation on land prices, and they amount to only 11% of the total cost of the project. Majority of the cost goes into construction of the homes, infrastructure development and technological installations that are built to ensure comfort and safety of the residents, as well as sustainability of the community. Koti elaborated on how this is done in each of the Organo projects: The benefits for the residents are amplified in an eco-habitat. Imagine a posh gated residential society in a city, spread across 20 acres of land consisting of several 1800 sq. ft. three bedroom, hall, kitchen (3-BHK) apartments, each with a carpet area of about 1200 sq. ft. Typically these are individual dwelling units in multi-storied buildings, often 20 floors or more. This society would at best accommodate about 2000 apartments along with some common amenities such as gym, grocery store, play area, salon, swimming pool, and other recreational facilities. Each 3-BHK apartment in Hyderabad could cost INR 15-20 million or more. For the same price across 20 acres of land, in a tightly packed cluster homes layout, Organo eco-habitat could accommodate between 150-180 homes, with each home having a carpet area of 1800 sq. ft. and a personal kitchen garden in the backyard. Of course, these would have higher population density via-a-vis our Naandi, Antharam and Kandawada projects, where each home has a much higher built-up area that is targeted to the more affluent people. In our eco-habitats, there is little to no dependence on the main public electricity grid for power due to 100% clean power generation within the community, in contrast to an apartment in the city that is entirely dependent on the main power grid of the utility company. Residents can see their own organic food grow and live in a lush green environment where they can breathe fresh air. There are more pluses in terms of amenities and therefore, fewer challenges in convincing our target customers about our value proposition. Besides, increasingly, a significant section of professionals want to move out of densely populated and polluted regions in the city. As work-life balance takes centerstage for a lot of professionals, it onlymakes sense to move away from the fast-paced city life and work at peace from the luxury of a home that is no iess than a resort. After Projects Naandi and Antharam took off, Battula and his team were looking to build on the cluster homes concept with an even greater population density to make the homes more affordable. In the later months of 2020, the product typology for Project Damergidda had been defined and conversations with potential customers were starting to take place as part of the preliminary market research process. Project Damergidda was expected to be spread across a site of over 21 acres of land with a layout plan of 6.5 units per acre, accommodating about 110 units initially and gradually expanding to cover over 200 families within the community. The ticket size for this project was estimated at INR18 million per home (about USD236,000). The proposed design for the homes was a townhouse layout (single-family homes connected to its neighboring house by a sidewall). Each home would have smart space-saving furniture that was expected to be functional, comfortable, and elegant. Each dwelling unitwas expected to be equipped with an intelligent system that would operate based on user's specific data and energy needs. The estimated cost of the entire project was INR 1.8 billion (about USD 24 million). 20% of the customers the team engaged in initial conversations were convinced and expressed willingness to invest. Two other projects were in the ideation stage, namely, Agrihoods at Project Aloor and an autonomous living project called Ecotubes. Battula felt that Project Aloor would be the point where Organo will have successfully disrupted the ecohabitat segment in the alternate real estate market. According to him, Organo's rurban communities would become synonymous with r affordable and aspirational housing. Aloor homes were likely to have studio apartment designs with 18.5 to 20 units per acre with each home priced at about INR 7.5 million (about USD 100,000). Once Aloor picked up pace, Organo, which was currently perceived as an offering for the affluent, would have then established itself as a brand name for middle class working professionals and be positioned as a unique offering in the residential real estate market in the country. After Aloor, the Organo team wanted to explore an autonomous living project called Ecotubes where there would no longer be the need for ownership of homes anymore. The residents could move from one house to the other within the community based on a flexible booking system depending on their mood. The site for Ecotubes was expected to span across 200 acres of greenery. COMMUNICATING TO THE NICHE AUDIENCE Even before the Organo team zeroed in on the project site for Naandi they had imagined the ideal 'Naandian'. In Project Naandi, they targeted buyers in the age band of 45-50, relatively well-settled in life, preferably families with children who had finished schooling and were leaving home for higher studies. While willing to remain flexible about the demographic profile, the Organo team was not ready to compromise on key psychographic aspects such as value systems, beliefs, willingness to live consciously, etc., as the community was a product of these elements entwined together. They were looking for buyers who would become active participants in the 'rurban' way of living and demonstrated strong willingness to live in harmony with nature, even if that meant making slight adjustments to their lifestyle. \"We were very particular about the first 20% of customers. After aii, they were going to be our I\" 'Connectors' & 'Mavens , highlighted Vaishnavi Paturu, Organo's Product Guide. Drawing upon Malcolm Gladwell's idea of 'Tipping Point'\large-scale social phenomenon, with the involvement of the right kind of people. At Organo Naandi, the mavens and connectors helped engenderthis 'social epidemic'. In marketing parlance, the mavens were highly respected individuals who played a key role in educating their peers to make informed decisions about certain ideas and products. Though not persuaders, the mavens established a link between the people and the marketplace. The connectors on the other hand gained influence not from expertise but through their vast social networks. People clustered around them because of their viral capacity to advocate new ideas, products, and trends. Organo never relied on external agencies that were specialized in real estate, such as Coldwell Banker Richard Ellis (CBRE), Jones Lang Lasalle (JLL) 2\" etc., for any of its projects for conducting market sizing studies. Battula was confident that they would not need extensive marketing campaigns or big hoardings on the highways to attract the right kind of customers. Such an exercise, they thought, would undermine their claim of being an eco-habitat and be wrongfully perceived as 'greenwashing'ls. Instead, they communicated their value through experiential tours of the project site, which was very intensive on the Koti's and Paturu's time. 'Slow Down Place', a fully organic farm store-cam-restaurant located about 10 minutes' drive from Naandi on the way to Hyderabad, was the preferred hangout spot where the team members had informal conversations with potential customers over lunch. Typically, these were genuinely interested potential buyers, who invested time and energy to enquire about the project and clarify their doubts. Through such meets, the Organo team could get a feel of the interest levels of these potential customers to invest in the eco-habitat; those that did not show interest were not pursued further. Koti and Paturu knew that they were talking to the right people, when the latter showed sustained interest in the Organo concept. These were people who were almost convinced and consequently much more likely to invest in Organo. The team believed that their 'non-salesy', value-laden communication strategy helped them effortlesslyjustify their claim of 'life on a slow track'. Paturu observed: We wanted our communication to he as organic as our projects. We did not resort to typical reai estate spieis; rather we invited prospects to partake in the activities of any of our eariier projects, soak in the beauty of the nature around them, and dirty their hands in the organic farms inside the project. This aiso heips us to figure out whether they would be a good fit for the comm unity. On-hoarding customers is akin to romance, where the buiidup is siow, steady, and eventuaiiy cuiminates in a strong reiationship. Project Damergidda, however, was different. With an expected price point of INR 18 million, Organo was looking to attract ecologically conscious home buyers who in the absence of green alternatives, would settle for a 1200 sq. ft. apartment in one of the real estate 'hotspots' of Hyderabad city such as Kokapet or Gachibowli. Battula had imagined the customer persona of future Dammargiddans to be similar to Naandians. While they fell into a younger age band of 30-40 years, their core value system had significant averlap with Naandians. One such core value that Organo looked for in their prospective customers was the relationship they shared with food. Just as in the case of Project Naandi, Project Damergidda was conceptualized to be built around a central organic farm with each unit looking into the farm. The core value system of the future Dammargiddan was expected to mirror this design philosophy-the centrality of greenery in one's lifestyle. The importance Organo associated with customer persona stemmed from Organo's philosophy that sustainability was a long-term endeavor, and a community of like-minded individuals was required to keep it going. For Damergidda, Organo planned on moving beyond the typical target segment of most real estate developers, viz., lT 2\" Global Real Estate Proaertv Consultancv Services. and healthcare professionals, and to additionally include people from the creative arts fraternity, such as painters, designers, musicians, dancers, etc., who could come together to form a community with shared interests and have a platform to follow their artistic pursuits. By the time Project Damergidda started taking shape in Battula's mind, Organo had gained some traction among the home buyers of Hyderabad through wordofmouth. Organo's innovative design philosophy and ability to integrate best practices of sustainability and community living led them to win the 'Leadership in Sustainable Design & Performance Award in the Residential Category' and the 'Advancing Net Zero Special Recognition' as part of the World Green Building Council's Asia Pacific Leadership in Green Building Awards in 2013. In November 2020, Project Naandi was featured in "Building a Better Future\" series presented by World Green Building Council and produced by BBC StoryWorksZ. Having been covered by major print media such as Economic Times\Pioneering sustainable communities was not devoid of challenges. Given the enormous existing infrastructure and the contemporary social patterns, it was easier for people to continue to live unsustainably as it was convenient. Battula recalled the eight steps to creating a sustainable community\member had to take the responsibility to engage, educate and get the buy-in and confidence of others to be able to reach a consensus. The process of decision making at the community level required balance, openness, and honesty. Each individual member had to balance between private and group time in varying amounts. Sustainable communities fundamentally depended on fairness in terms of responsibilities and access to benefits, a shared appreciation for infrastructure and the spirit of rurban, and cultivating a sense of bonding, caring, and trust amongst each other. In communities that eventually got into trouble the public story no longer fit the private behavior of individual members. At Naandi, Honest and open discussions about individual expectations and needs helped address differing views about community functioning. The task for the Organo team for its future projects was to handhold members through several steps in the community development process till the point when they became self-reliant and learnt to live harmoniously with each other. TIME FOR DECISIONS A major challenge for the Organo team was bringing down the price point of homes in Project Damergidda, while continuing to offer the core elements of its earlier projects. The biggest roadblock in achieving the desired price point was the cost of land. While the team continued to meet prospective buyers, land acquisition was still lagging behind. The team acknowledged that the more time they took in finalizing the plot of land for Damergidda, the costlier it would become, and as a result the farther they would have to move from the city to remain within their budget. In 2019, Batulla had faced similar situation before starting the Project Naandi. Nevertheless, the team managed to navigate the unstructured regulatory regime for real estate in the city through relentless hard work and timely decisions. Since Project Damergidda would accommodate more units within the community, the number of families occupying these homes would inevitably increase. To sustain the community, food and milk production also had to be increased, although the land available for such activities would proportionately reduce due to larger number of residential units that had to be built. Batulla and his team had several discussions regarding the infrastructural load for this community and the impact it could possibly have on overall water, waste, energy and food footprint. No compromises were to be made in terms of energy infrastructure, waste treatment, water harvesting and conservation, and community farming. However, Battula felt that there were other areas that needed to be changed or eliminated: Naandi and Antharam were lavish communities in terms of facilities, enjoying several elements of luxury such as a high-cost bio-pool, a therapeutic spa, a 50-seater community theater, a club house, lavish guest suites, etc. There was also a large Goshala in these communities to meet dairy requirements for each home. At Damergidda, costs could still be recovered as more people were going to come in, but space to accommodate additional facilities was a constraint. Maintenance would also go up with more food production and consumption, energy and water consumption and waste generation. Confronted with several choices that largely entailed making compromises, Battula and his team had to finalize whether they would eliminate certain elements of luxury that were taken for granted in the previous projects and forego the Goshala by setting up alternative methods of meeting the dairy requirements of the homes: We don't cheat our clients. We regularly interact with them to understand their needs and expectations and any decision we take about Damergidda would be based on theseconversations. Everything will be clearly and transparently communicated to each interested buyer. The potential customers who visited Naandi or Antharam, and therefore had high expectations of Damergidda, may be disappointed at our dropping some of the features of our earlier projects. In the process, we risk losing some potential customers due to certain compromises that must be made to remain economically viable. Despite Naandi and Antharam serving as precedents for our success, Damergidda would involve significant changes in the design architecture and serve as an exemplar to demonstrate our efforts in mainstreaming sustainable living. Although Battula and his team were confident about the profitability of their upcoming projects, were skeptical if other developers would follow the trend of sustainable housing or not. Their vision to disrupt the alternate real estate market would be incomplete if their fellow developers continued to build ecologically unsustainable projects despite Organo setting a precedent for success in the market. They had to also consider scalability of the Damerigidda model to mainstream ecologically sustainable habitats at scale. However, Organo was ready to take bold risks now and leverage first-mover advantage in affordable housing solutions in the eco-habitat segment. Their decision would define future growth in the expanding alternate residential realty sector.Exhibit 1 The Organo Team Nagesh Battula Vijaya Durga (Managing Director) (Managing Director) Brought in 20 years of experience in residential, Brought in 20 years of experience in interior design and commercial, hospitality, retail and luxury interior shares the vigor to develop Organo as a highly projects. It was his vision to develop a project that is sustainable and net-zero in its resource productive and aesthetically appealing farming community . consumption. Manthan Ramaiah Dhamothara N (Director - Design) Meena Murugappan (Director - Operations) (Director - Development Strategy) Brought in 12 years of experience, Brought in 11 years of experience in working in Indian and international Brought in 17 years of international architecture with master planning firms, leading award-winning master and local experience across multiple and large-scale projects to his credit. plans with special emphasis on industries. She is passionate about Ensures getting critical design passive and active sustainable developing real estate products that solutions right without compromising strategies. Handles master plan and are first-to-market. on logistical efficiencies. public space design at Organo. Harinath Rao Niharika (Associate Director) (Project Management) Brought in decades of expertise in Brought in 10 years of experience in functional construction and real construction and handles technical estate and is well-versed with support, sustainability and customer business technicalities. At Organo, he relations at Organo. She is an Indian leverages his multi-faceted expertise Green Building Council (IGBC)- in adding value and delivering accredited professional LEED Green superior customer experience. Associate. Rakesh Koti Vaishnavi Paturu (Head - Sustainability) (Product Guide - Sustainability) Dr. Syamasundar Reddy (Senior Scientist and Head) A BE from IIT Kharagpur and an MS An MS in Advanced Construction in Energy Systems from University Management and a Bachelors in Specializes in agriculture cycles, Civil Engineering, Vaishnavi crop production, plant protection, of Illinois in Urbana Champaign, Rakesh strategizes development of worked as an Associate Counsellor and agricultural marketing- related agro advisories. net-zero environments at Organo. at IGBC and has facilitated more than 100 green building projects. Source: Company website. Retrieved from https://www.organo.co.in/team\fExhibit 3 Sapthapatha - Seven Strands of Sustainable Development Creating a healthy source of nutrition through foodfproduce grown using organic farming practices without the need for chemicals. Employing advanced scientific procedures for conservation and treatment of water and regularly monitoring overall water consumption vs. production. Natural farming practices that also ensure clean and healthy air options. Presence of herbal plantation that puries air, free from pollution. Protecting the Earth by preserving soil health, by using organic methods and fertilizers, employing necessary waste management and recycling processes. Producing all energy from within the community area through renewable sources such as solar energy and a biogas plant and employing procedures to reduce power consumption. Creating shelter within nature while maintaining biodiversity. Open yet personal living spaces, incorporating comforts of this day and age. SHELTER '0 0- O Encouraging a community of people who live together responsibly, share their time, knowledge, and expertise towards co-creating and sustaining the environment around them. PEOPLE Sou rce: Com pany website. Retrieved from https: [[wwworga now. in [eco-ha bitats Exhibit 4 Select metrics submitted to Indian Green Building Council for rating of Project Naandi Rurban Commune I. ANNUAL ENERGY CONSUMPTION Total annual energy consumption for the project (k'll'll'h)a 954,024 {Including interior, common, and exterior areas) Total annual power generation through on-site renewable energy 11,65,800 (kWh) Ca pa city (kw) Solar Photovoltaic Generation { kWh) 1,07,000 Wind Turbine Ca pa city (kw) Generation (kWh) From Other Sources Capacity (kw) Generation (kWh) Total annual power generation is more than total annual power consumption a. kilowatt hour (kWh) is a measure of total energy consumption SUB STATION-1 POWER Date:11/Df2013, 10:45AM to 12f04f2013_.11:00AM Net-metering readings for a typical day at Organo Naandi ll. SOLAR WATER HEATING SYSTEM Hot water requirement/person/day (liters) Number of occupants Total hot water requirementlday (liters) .700 Capacity of solar 1water heating system (liters) 20,100 The capacity of solar water heating system is more than the total hot water requirement per day Ill. DISTRIBUTED POWER GENERATION\" Rated capacity of D6 sets (kVA) Total Capacity (k'li'A)a 330 _ * Distributed power generation is a hybrid energy system based on interconnected small- and medium-sized power generators operating on bio-fuelslnon-edible oilsfany other non-fossil-based fuel and fossil fuel. a. Kiloyolt ampere (kVA) measures the apparent power required by an electrical system, i.e., the total amount of power in use in a system. IV. WASTE MANAGEMENT (treatment, reuse, recycle, landll) a. Organic waste management, post occupancy Quantity of organic waste (household, kitchen and garden waste) generated in the project per day (kg) Number of occupants 335 Organic waste (kitchen waste) generated per day (kg) Capacity of organic waste treatment system (kg) *Capacity of organic waste treatment system is more that the quantity of organic waste generated per day b. Reuse of Salvage Material\" Total Construction Cost (INR) INR933 million Default Total Materials Cost (INR) INR553 million Salvage Material Salvage Material Application Areas in the Cost Project Units (Metrics Total Cost -Tons, Nos., (INR) K35. cum} Salvaged wood for 134,000 _-- Screens/Shades screens Salvaged materials account for 1.2% of total building materials by cost *Salyage materials are materials ofyalue that originate from disassembly of machinery, woodwork, demolishing of buildings, etc. which could include materials like brick, wood, concrete, metals, asphalt, roofing materials, etc. that can be recycled. V. BUILDING MATERIALS Total Wood Material Cost (excluding labor and equipment) Rs. INR71.14 million a. Rapidly Renewable Building Materials Material/ Manufacturer Quantity Material/ Product Percentage Value Application Product Name Cost of Rapidly Qualifying Areas in the Name Number Units Cost/Unit Total Renewable as Rapidly Project (Metrics) (RS) Cost (RS) Content Renewable (INR) Bamboo Native Konbac 1 LS INR5.29 INR5.29 100% INR5.29 Clubhouse Structure million million million structure for roof b. Use of Certified Wood Material Manufacture Quantity Material/ Product Cost Percentage Value Application r Name of Rapidly Qualifying Areas in the Product Renewable as Total Rapidly Project Number Units Cost/Unit Cost Name (Metrics) Content Renewable (INR) (INR (INR) Plywood Greenply 1 LS INR18.8 NR18.8 100% INR18.8 Doors million million million Plywood Greenply LS INR40.3 INR40.3 100% INR40.3 Wardrobes million million million & Kitchen Total Approx. INR59.16 million a. Certifications like Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC) and other equivalent wood material. FSC is a multistakeholder market-based certification program used as a transnational environmental policy. Products with FSC labels provide information about origin of materials used to make the finished and labelled product. PEFC is a global alliance of national forest certification systems dedicated to promoting sustainable forest management through independent third-party certification. VI. WATER BALANCE Water Availability (liters) Daily (Peak Value) (liters) Annually (liters) Municipal water (including ground water) Ground water 210,000 76.65 million Treated wastewater 25460 9.29 million Stored rain 150,000 1 million Tota 385,460 86.94 million Water Demand (liters) Daily (Peak Value) (liters) Annually (liters) Flush Fixtures 5528 2.17 million Flow Fixtures 26298 9.59 million Landscaping 150,000 54.75 million Total 181,825 Approx. 66.3 millionWastewater treatment Total volume of wastewater generated (litres/day) 31825 i) From flush fixtures (black water) a 5528 (litres/day) ii) From flow fixtures (grey water) b 26298 (litres/day) Capacity of sewage treatment plant (litres/day) 60000 a. Black water is the wastewater from toilets containing fecal matter and urine. It also includes wastewater from kitchens and dishwashers due to contamination by pathogens and grease. b. Grey water is wastewater from sinks, washing machines, bathtubs and showers containing lower levels of contamination and easier to treat and recycle. Volume of treated wastewater available 25460 (liters/day) Number of operational days 365 Total volume of treated wastewater available About 9.29 million annually (liters) Reuse of Treated Wastewater/ Volume of Water Volume of Water Reused Annually Stored Rainwater for Various Required Annually (liters) Treated Stored water Applications wastewater (liters) (liters) Flushing 2.17 million 2.17 million Landscaping 54.75 million 7.72 million 200,000 Total Approx. 56.76 million Approx. 9.7 million 200,000 Total volume reused annually is more than the total treated wastewater volume available annually Source: Company's documentation for Indian Green Building Council RatingsMicro Units Senior Housing Exhibit 5 Emerging Niche Categories in the Alternate Residential Realty Sector _ Student Housing Lively, engaging, and next generation student housing in major cities and education hubs of India A combination of purpose-built and aggregation model. Purpose- built models in this context means housing settings specically designed and constructed to meet social and healthcare needs for the elderly. Under the aggregator or aggregation model, an operator creates an online marketplace where owners can list their properties. The owners will be charged a commission for every booking that they get through this marketplace. The future trend hints at a clear shift to aggregation model due to availability of huge unsold residential inventory {unsold housin units). Specically built projects with nursing facilities Inadequate stock of campus hostel beds coupled with lifestyle aspiration of Gen Z (age group of 18-25) Driven by increased preferences of highly educated migrant professionals Changing mindset of elderly generation coupled with the fact that their children are settling abroad or at other cities. Addressable Investments The addressable market is expected to touch 2.3 million units by 2022. Market and Institutional investors and PE funds have invested over INR20 billion (approx. U50266 million) since 2015 in student housing and student rental housing segments. The student housing segment alone is expected to witness investments of over INR 200 billion b 2022. The market for micro units is likely to touch a demand of 0.48 million by 2022. 53% of this demand, i.e., about 0.26 million units is recorded across three southern cities in India namely, Bengaluru, Chennai, and Hyderabad. By 2023, investments from organized players is likely to touch INR58 billion (approx. USD 772 million} of which the three southern cities will require an investment of INR 32 billion (approx. USD426 million}. Although at a nascent stage, the demand for this segment is expected to be 0.6 million units in India by 2023. Across the three southern cities, the demand is expected to be 62,000 units by 2022. The segment has witnessed significant investment from major institutional investors like Columbia Pacific Development, Max India, Tata Capital, Tata Housing, etc. An investment of INRGO billion (approx. USD800 million) by 2023 will be needed to cater to the growing demand in the segment of which INRlS billion (approx. USD 200 million} would be required in the southern cities. Source: Meraqi Advisors. [2018, July 3). 'lno'ia's alternate residential realty sector looks at U50 4.3 billion investment, Bengaluru, Chennai and Hyderabad accoun t for25% of it', reveals Meraqi's latest research report 'Emerging Residential Niche Products'. [Press Release]. htt s: more iadvisors.com ress-release emer in