Grupo MIA (Mejoramiento Integral Asistido):

Profit at the Base of the Pyramid

Marketing to Consumers at the Bottom of the Pyramid

Case Discussion
Presented by

Section 1, Group 2
Abhijit Mohanty (UM18003)
Aritra Mitra (UM18013)
Debjit Ghosh (UM18017)
Purojeet Swain (UM18036)
Radhashyam Mohanty (UM18040)
Sarthak Sood (UM18061)
Anjan Mohanty (UM18078)
Anjaneya Sahu (UM18079)
Svetlana Mohapatra (UM18130)
 PRODUCT TYPES
Grupo MIA (Mejoramiento
Integral Asistido)
Apr
Started by Guillermo Jaime
2009
OBJECTIVES OF MIA
Traditional Progressive Exterior
• Average unit cost of $5000 • Avg stage cost of $1500 • Average unit cost of $1200
• Comprises 40% of the total • Comprises 40% of the • Comprises 20% of the total
units sold total units sold units sold

Provide quality 50% to 60% 10% to 15% 5% upfront Balance to

Profitable and Focus mainly on
housing solution sustainable rural Mexico 1 federal govt. 2 state govt. 3 from the 4 be paid by
for BOP families subsidy subsidy owner microloan

ENTRY INTO THE FORMAL MARKET BUSINESS MODEL

Started by Community
Estimated
piloting 250 Identification &
2015 houses for this 500k total market
Recruitment
Financing Logistics
size
market segment

The Idea Choice of traditional/progressive/exterior

Build affordable MIA JV was a separate
Selected based Community leaders Orders of batches Two options:
houses in urban legal entity
on need, contacted by social of 25, supplies self-build or
settings using contracted to MIA to
revenue, promoters to initiate obtained from outsource to
Infonavit financing build houses
climate, etc. engagement supplier network contractors
 Grupo MIA (Mejoramiento Integral Asistido)
MORE THAN HOUSING?
The Idea Other Sectors
• Expand housing business to Columbia, • 4/5th buy • 2.2 mn people • Worked as a
Ecuador, Guatemala, Nicaragua bottled water w/o electricity sub-system
• Use MIA as a platform to explore • Serious burden • 8.8 mn have • Awareness not
business opportunities in other sectors Water for BOP families Energy irregular supply Healthcare there among all

ENTRY INTO DIFFERENT SECTORS EXPANSION INTO OTHER SECTORS

WATER ENERGY HEALTH CARE Highest Historical
$5.3 recorded
Affordable water Clean energy (wind, solar, Very small clinics in
8.5% best EBITDA
mn sales (2015) margin
filter for BOP clients geothermal) to BOP rural areas

The Plan Why Should MIA Invest?

• Aims to reach 1 mn rural
families by 2020
• Brought the filters to
Mexico, expanding MIA
to Guatemala
• MIA buys 20% stake
Pretty and
affordable
• Provides solar power at
• Charge a small fee from • Not a capital intensive business
no cost up-front
• the consumer for • Relatively quick growth with less investment
Owners bought prepaid
convenience • Even with a vast market for self-built homes,
credits of solar energy
• Cost savings associated there were an “ocean of opportunities” to
• MIA buys 20% stake
• with clinics being closer to meet the demands of Mexico’s BOP families
Potential to expand
consumer’s home • Highest recorded sales and profit in 2015 show
beyond BOP
• People to save approx. that people believe in MIA and their cause
$100 per visit • Opportunity to take MIA’s reputation of
“People are willing to spend a affordable housing to other sectors
small fee for added convenience.”
- Guillermo Jaime THANK YOU