Affordable housing using sustainability-led C3DP: Tvasta

The problem Tvasta is addressing is the vast, unmet demand for construction, particularly in India, but also globally. By 2030, over half of the floor space India will require is yet to be constructed. This situation is echoed in surrounding regions such as the Middle East, East Africa, and Southeast Asia, each with significant construction needs.

In 2023, India’s national housing shortage is projected to reach an alarming 18.78 million units, according to the Technical Unit on Urban Housing Shortage. Yet, the construction sector has only seen a 1% productivity growth over the past two decades. The industry still heavily relies on traditional, labor-intensive practices that are slow, require hard-to-find skilled labor, and are often unsustainable.

The environmental impact of the building sector is another critical issue. In India, this sector consumes 33% of the country’s energy and accounts for around 20% of total emissions. In a stark statistic, over 80% of a building’s lifecycle emissions and waste contributions can stem from its operational phase, underscoring that operational sustainability is as crucial as construction process and material sustainability.

On a global scale, Habitat for Humanity estimates that 1.5 billion people are in dire need of improved housing. In response to this, India is aiming to build 20 million houses and 120 million toilets by 2024. However, the current construction technologies fall short of this enormous task due to their slow pace, lack of customization, inconsistent quality, and limited sustainability. The construction sector is a unique industry facing significant supply-side constraints, despite a massive, unfulfilled demand.

Tvasta’s mission is to revolutionize and automate construction, enhancing both productivity and sustainability. By doing so, we aim to provide affordable housing and improved infrastructure to millions of people around the world, addressing the global housing crisis more effectively and sustainably.

We are employing 3D printing for the construction and housing needs of India and beyond. We own the entire stack of construction 3D printing solutions 

1.  Construction 3D Printers: We have multiple types of printers developed indigenously e.g. Gantry type off-site and on-site printers, Robotic arm based printers, Pole printers

2.  An array of materials : We work with various materials with lower carbon and environmental footprints (including geopolymer-based mixes, limestone calcined clay cement and GGBFS slag-based mixes, LD slag mixes, etc.) according to the needs of our customers. These mixes can reduce the embodied carbon footprint by 30-60% (depending on the mix) when compared to OPC-based mixes with equivalent grades. 

3. Software: One-of-a-kind, fully functional indigenously developed construction 3D printing software. 

4. Building strategy:  We have a group of architects and structural engineers to provide the printing and building strategies.

Having all these faculties in-house helps us constantly evaluate and innovate the technology. It also helps us in disrupting the market with minimal lead time and dependency on other players. Here are the key outcomes and advantages of our solution

Faster construction: Manufacturing-style production system to increase productivity up to 5-10x Affordability: Tvasta is working with key players in the entire value of construction 3D printing to lower the cost of construction by achieving economies of scale. Reduces the carbon footprint significantly - 3D structures can be built in an efficient manner (with 30-40% lesser material) limiting the overall impact they have on the environment. 

Strides towards sustainable construction - Specially designed material mixes that offer superior structural stability and usage of recycled materials (Construction and demolition waste, fly ash, etc)

Optimal utilization of material- Digital construction software accurately specifies the amount of material required for the structure. Accordingly, there is no material wastage at any stage of the printing process.

Reduced energy utilization - Structures built using this process consume much less energy during their lifetime and hence reduce the impact on the environment.

The end user or beneficiary of our technology is LIG and MIG population in India. And in the course of achieving that we also serve construction companies and Government bodies(by being technology enablers and providing them with a viable solution) Some of the problems faced by the target population currently are

1. Construction is slow and there is a huge waiting time -  Construction has only witnessed 1% productivity growth in the last 20 years. The need of the hour is to automate this process, construction 3D printing has the potential to fasten this process by 5 to 10 times.

2. Construction is costly - We would like to enter the retail housing market and provide technology-based mass construction to customers who are building individual houses (without any cost advantage that large projects have).

3. Aesthetic and design needs: There have been past attempts to incorporate automation in construction, however, most of the time they do not take into account the aesthetic sense and taste of the end user and are not able to cater to their individual needs. Construction 3D printing is capable to deliver on this aspect as well.

4. The operational efficiency of the houses built will also be lower and the money spent post-construction will be lesser. Techniques like radiant cooling is one such example that can be easily incorporated into the design.

5. Disaster-resistant structure: A house can be the single most important investment for a household and even a single disaster incident can drastically affect their socioeconomic stability. We are working with CSIR-SERC to test and develop a disaster-resilient structure. 

Our business model for affordable housing takes a holistic approach and it considers in its core all the stakeholders.

The Tvasta team is deeply rooted in the communities we serve, enabling us to fully understand their specific needs and adapt our solutions accordingly. This connection, paired with our strategic partnerships, equips us to deliver sustainable and impactful solutions.

We have a strong partnership with the Ministry of Housing and Urban Affairs, which has recognized our efforts by granting us $1 million to further develop our construction technologies. This substantial support underscores the government’s trust in our capabilities and the potential impact of our solution.

In collaboration with the Karnataka Housing Board, we are diligently working to address the significant demand for affordable housing in the region. Our efforts directly combat housing shortages and improve living conditions for countless individuals.

We are also engaged in a key partnership with the Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC). Together, we are pioneering efforts to enhance infrastructural development across the state, leveraging our 3D printing technology to expedite and streamline construction processes.

In Chennai’s Perumbakkam area(Tamil Nadu) we are in the process of building a community center. This initiative not only exemplifies our commitment to providing housing but also fostering community development and social cohesion.

Our work with the Tamil Nadu Urban Habitat Development Board (TNUHDB) on the Beneficiary House project allows us to directly engage with beneficiaries, ensuring our solutions genuinely respond to the needs of those we aim to serve.

Further, we are collaborating with microfinance institutions to enable broader access to our affordable housing solutions. By facilitating financial assistance, we can reach more individuals seeking to construct affordable homes, amplifying our impact.

Lastly, in partnership with the Structural Engineering Research Center (SERC), we are developing open-source solutions for disaster-resilient construction. We intend to implement these in the hurricane-affected eastern areas of India, demonstrating our commitment to creating safer and more resilient living environments.

Each of these partnerships and initiatives underscores our dedication to the communities we serve. They reflect our belief that understanding the specific needs of these communities and actively involving them in our solution development process is crucial to achieving sustainable, impactful results

We are currently serving about 80 people including the residential and commercial structures built by Tvasta. In the future i.e. five years from now, Tvasta will be serving about 1,50,000 people directly considering the number of commercial and residential structures to be built, the franchise centers for 3D Printers to be set up, and also the printers that have been sold.

As our company is in the growth stage and C3DP is fairly a novel technology in a relatively old Construction space, we recognize the importance of partnerships and collaborations to achieve full commercialization and bring our solution to a larger audience. While we have established partnerships in the Indian market, we aim to replicate this success in other regions as we expand globally. MIT Solve presents an opportunity for us to showcase our technology and gain access to crucial resources, including:

1. Global Business Partnerships: Through MIT Solve, we can better understand local needs and conditions, allowing us to create impactful solutions for a wider population.

2. Collaborations with R&D Institutes: C3DP technology requires contributions from various STEM fields such as Material Sciences, Robotics and Automation, Structural and Civil engineering, environmental engineering, and Architecture. MIT Solve can help us find the right partners to innovate and evolve the technology over time.

3. Distributors and Franchise Partners: As we strive to become a global company, we require partners to deliver our products and solutions (e.g. printers, material mixes) to different regions. MIT Solve can provide a platform to initiate discussions with potential distributors and franchise partners.

4. Networking and PR: Our participation in MIT Solve can broaden our network and increase exposure on a global level. 

Overall, we believe that MIT Solve can be a significant platform for our company to achieve its growth objectives and drive impact at scale.

Tvasta aims to automate the building process and improve productivity, customization, and sustainability. The innovation of C3DP lies in its ability to construct entire buildings using a 3D printer, eliminating the need for manual labor and allowing for faster and more accurate construction. This method is faster and more precise than traditional construction methods, reducing construction time and costs.

a. Our 3D Printer and Material delivery systems enable us to print at an affordable price and enable cost-effectiveness. For example, we can 3D Print concrete with larger aggregate size particles (up to 12 mm) which enables us to pump with cheaper concrete material than our competitors across the world. 

b. Ownership of the technology stack: this enables Tvasta to disrupt the market with minimal dependency on other players unlike those in India only importing printers, we constantly iterate and push our capabilities to even better serve Indian construction needs

c. We have an array of sustainable materials with lower carbon and environmental footprints (including geopolymer-based mixes, limestone calcined clay cement, GGBFS slag-based mixes, LD slag mixes, etc.) according to the needs of our customers. These mixes can reduce the embodied carbon footprint by 30-60% (depending on the mix) when compared to OPC-based mixes with equivalent grades. 

d. Another key innovation of C3DP is its ability to customize the construction process to meet specific design requirements. There have been multiple attempts to automate construction in the past, however, nothing comes close to C3DP when it comes to design customization This means that architects and engineers can design and construct buildings that are both aesthetically pleasing and functional without losing out on time for making formworks

1. Affordable Housing: In the next year, our goal is to build 10 affordable 3D printed houses, increasing our production capacity and streamlining our processes. We aim to reach a target of 800 houses per year by the end of Year 5. We will achieve this by investing in R&D, enhancing our 3D printing technology, expanding our team, and partnering with real estate companies, governments, and NGOs. Furthermore, we will focus on improving our construction speed and lowering production costs, to make our houses even more affordable.

2. Sustainability with respect to Carbon Reduction: We will continue to improve our 3D printing technology to make it more energy-efficient and reduce carbon emissions. We will also work on developing and utilizing more eco-friendly construction materials. Our goal is to reduce our carbon footprint by 10% in the next year, and by 50% in the next five years. To measure our progress, we will conduct regular audits of our carbon emissions and make the necessary adjustments in our operations.

3. Job Creation: As we expand our operations, we expect to create more jobs directly within our company and indirectly in related industries. Over the next year, we aim to increase our full-time staff by 20% and our contract employees by 30%. By Year 5, we aim to employ at least 200 full-time employees and 50 contract employees. Additionally, by expanding our reach and building more structures, we will be indirectly creating jobs in sectors like real estate, design, logistics, and maintenance.

4. Disaster Relief Process Development and Deployment: We aim to develop a rapid response process for deploying our 3D printing technology in disaster-stricken areas, for the construction of temporary or permanent housing and facilities. In the next year, we plan to develop a prototype of this process and test it in simulated conditions. Over the next five years, we aim to have this process fully operational and tested in at least three real-world disaster relief scenarios.

5. Education and Training: Recognizing the transformative potential of 3D printing in the construction industry, we aim to create educational programs to train the next generation of architects, engineers, and builders in 3D printed construction. In the next year, we plan to develop a curriculum in partnership with educational institutions and offer training programs. Over the next five years, our goal is to train at least 1,000 professionals and students in 3D printed construction, thereby fostering innovation and growth in the industry.

These impact goals align with Tvasta’s mission of revolutionizing the construction industry through advanced 3D printing technology. They also contribute towards a more sustainable and inclusive future.

Tracking progress towards impact goals is crucial for understanding the effectiveness of Tvasta Manufacturing Solutions’ strategies and making necessary adjustments. Here are some specific indicators we are using to measure our progress:

1. Affordable Housing: We track the number of affordable 3D printed houses we build each year. This is a direct measure of our impact in addressing housing needs. We also monitor the cost of each house, aiming to reduce it over time, which would indicate improved affordability.

2. Sustainability and Carbon Reduction: We conduct regular audits of our carbon emissions to measure our environmental impact. We look at factors such as energy used in the manufacturing process, emissions from our operations, and the lifecycle emissions of the materials we use. We aim for a year-on-year reduction in our carbon footprint.

3. Job Creation: We track the number of jobs we create directly within our company and indirectly in related industries. We monitor both the number of jobs and the quality of these jobs, in terms of wages, benefits, and working conditions.

4. Disaster Relief Process Development and Deployment: We assess our progress in this area by tracking the development and successful deployment of our disaster relief process. Key indicators include the speed at which we can deploy in response to a disaster, the number of structures we can build in a given timeframe, and the feedback we receive from those using these structures.

5. Education and Training: We measure our impact in this area by the number of people we train in 3D printed construction each year. We also track the outcomes for these individuals, such as job placements or advancements in the field of 3D printed construction.

These indicators align with several of the UN Sustainable Development Goals (SDGs), including:

• SDG 11: Sustainable Cities and Communities (Indicator 11.1.1: Number of people living in slums, informal settlements, or inadequate housing)

• SDG 9: Industry, Innovation and Infrastructure 

• SDG 8: Decent Work and Economic Growth (Indicator 8.5.2: Unemployment rate, by sex, age, and persons with disabilities)

• SDG 13: Climate Action (Indicator 13.2.2: Total greenhouse gas emissions per year)

• SDG 4: Quality Education (Indicator 4.4.1: Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill)

By tracking these indicators, we can ensure that we’re making measurable progress towards our impact goals and contributing to broader sustainability objectives.

Goal: To provide affordable and sustainable construction solutions to meet global demand.

Assumptions:

1. There is a significant global demand for affordable and sustainable construction solutions.

2. The current construction industry practices are slow, costly, and unsustainable.

3. The C3DP technology has the potential to revolutionize the construction industry by improving productivity, customization, and sustainability.

Interventions:

1. Develop and refine C3DP technology by innovating next-generation construction 3D printers, and low-carbon materials to improve construction productivity, customization, and sustainability. 

2. Create awareness and interest among potential customers and stakeholders about the benefits of C3DP technology.

3. Establish strategic partnerships with key stakeholders such as R&D institutes, distributors, and franchise partners to expand market reach and enhance sustainability.

4. Understand end-user requirements and conduct research and development to continually innovate and improve C3DP technology to meet evolving customer needs and preferences.

Outcomes:

1.  Creation of a strong supporting ecosystem and Increased adoption of C3DP technology by customers and stakeholders. 

2. Improved construction productivity and sustainability leading to more affordable and sustainable construction solutions.

3. Enhanced brand awareness and reputation for Tvasta as a leader in innovative and sustainable construction solutions.

4. Increased revenue and profitability for Tvasta, enabling continued research and development and expansion into new markets. 

Impact:

1. Increased availability of affordable and sustainable construction solutions globally.

2. Reduced overall environmental impact of the construction industry.

3. Improved quality of life for individuals and communities through access to safe, durable, and sustainable infrastructure.

Tvasta provides turnkey solutions for C3DP technology which is a combination of printers, software, and materials that enable the 3D printing of buildings. Here are some key points about the Our core technology:

1. Printers: C3DP uses a 3D printing machine that is programmed to lay down concrete layer by layer, allowing for the precise construction of buildings by a process called topological optimization. Our printers’ portfolio includes Off-site and On-site Gantry Printers, Robotic Arm-based printers, and Pole printers.

2. Material: The C3DP technology uses a material mix that is specifically formulated for 3D printing,

the material mix must exhibit the behavior of a solid and hold its shape (after deposition) or the behavior of a liquid to be able to flow and be transported (during pumping and extrusion).

3. Extrusion System: The extrusion system also known as the hopper mechanism is designed to ensure a consistent flow of concrete and enable the printing of complex geometries. This flow can be changed according to specific needs for the printing.

4. Control and Monitoring Software: The control software of C3DP is designed to interface with the printer and extrusion system, enabling precise control of material flow through the nozzle and movement of the hopper in the printing space. It ensures that the printing process is running smoothly and provides real-time data on the progress of the construction.

5. Design Software: The design software(e.g. Autocad Fusion, Rhino, and Grasshopper)  allows architects and engineers to design buildings in a 3D environment, enabling them to create complex shapes and structures, conduct operational analysis and studies, etc.

6. Auxiliary subsystems: This involves mixing and batching plants to prepare the material mix of a particular rheology, which is later fed by the pump system to the hopper mechanism. 

Overall, the C3DP as a technology is a quite sophisticated and integrated that combines hardware, software, and materials to enable the 3D printing of required structures. It is designed to be fast, precise, customizable, and sustainable, with the potential to transform the construction industry.

At Tvasta Manufacturing Solutions, diversity, equity, and inclusivity are fundamental to our success and our impact. We're committed to fostering a culture that values diverse perspectives, promotes equal opportunity, and ensures every team member feels valued and included. Here's how we approach these principles in our work:

1. Diversity: We value diversity in all its forms, including gender, race, ethnicity, religion, age, sexual orientation, and abilities. We believe that a diverse team brings a range of perspectives, ideas, and experiences that can lead to innovative solutions. We strive to maintain a diverse workforce and leadership team, and we're committed to recruiting from a variety of backgrounds and experiences.

2. Equity: We are dedicated to providing equitable access to opportunities within our organization. We believe in a merit-based system where all employees have an equal chance to grow and advance, regardless of their background. We also address disparities and strive to eliminate barriers that may have historically prevented the full participation of marginalized groups. This includes fair compensation, opportunities for professional development, and transparent promotion processes.

3. Inclusivity: We aim to create an inclusive work environment where all team members feel welcomed, respected, supported, and valued. This means fostering a culture of open communication, mutual respect, and collaboration. We regularly conduct team-building activities and provide platforms for all voices to be heard.

We also understand that diversity, equity, and inclusivity are ongoing efforts. We regularly review our practices and policies to ensure they align with these principles. We also provide regular training and workshops to educate our team on the importance of these values and how to uphold them in our daily work.

Lastly, our commitment to these principles extends to our clients and partners. We believe that by promoting diversity, equity, and inclusivity in our work, we can help create a more equitable and inclusive construction industry.

Tvasta is a turnkey provider for the construction 3D printing needs of its customer. Following are our key revenue streams

1. 3D Printer Sales (high margin sales)

2. 3D Printing Platform as a Service (high long-term revenue growth potential)

3. Material sales (the above two revenue streams are captive customers to this recurring revenue line)

4. Design for 3D Printing (this will enable us to retain customers in the long run and is not aimed as a major revenue generation line)

Our aim is to establish a revenue model that would pay per use similar to a subscription service.  Depending on the type of project, this could be a per hour, per square foot, or per module model. But this model, once established, will enable standardized scaling across various types of projects throughout the country and subsequently in Global Market. We would also lay maximum emphasis on avoiding the end contracting/execution work and will work with established construction companies to build and scale up our franchise centers. 

Our initial effort over the next year would be to work with our lead customers and lead adopters to prove the viability of the technology for various types of structures (affordable housing and Basic Infrastructure requirements). We would like to move to a Franchise based model in the future (in partnership with construction companies in various regions) where Tvasta works with them using a Pay per use model for the 3D Printers. In this Platform as a Service Model, Tvasta will provide the 3D Printing technology and the operational expertise for running them. The construction companies would manage the on-ground construction and pay Tvasta for the usage of its 3D Printers, material, and consultancy.

The larger end goal is to create a cohesive and collaborative ecosystem to enhance the adoption of C3DP technology by the customers and stakeholders. Through our core solution, we want to maximize construction productivity and sustainability leading to more affordable and greener construction solutions, which in turn will be impacting builders, governments, and the general public at large. Overall it will be Improving the quality of life for individuals and communities through access to safe, durable, and sustainable infrastructure.

Tvasta Manufacturing Solutions has developed a diversified financial sustainability plan that ensures a steady flow of income from multiple sources, while also planning for strategic investments to fuel future growth. Here’s how we plan to achieve financial sustainability:

1. Revenue Generation: Our primary source of revenue comes from selling our products and services, which includes selling 3D Printers, providing 3D Printing Services, selling 3D Printable materials, and offering Architecture & Design solutions. We are already revenue positive and project-wise gross margin positive, which means that we are generating a profit on each project before considering company-wide operating expenses.

2. Scaling Revenue: We have a robust growth plan in place, aiming to increase our revenue from $2 million to $8 million in the next 12 months. This would be achieved through strategic marketing, sales expansion, and continued delivery of high-quality products and services that meet our clients’ needs.

3. Capital Raising: We plan to raise additional equity capital to fund our cash flow needs and tech development. This will allow us to invest in expanding our team, improving our technology, and scaling our operations. Additionally, we will seek grant capital for tech development and prototyping, leveraging non-dilutive funding sources to advance our innovation efforts.

4. Profitability: While we are currently not EBITDA positive, we aim to achieve profitability in 18 months. This will be achieved by optimizing our operations, improving our gross margins, and scaling our revenue while maintaining control over our operating expenses.

5. Long-term Financial Planning: Over the long term, we will continue to balance revenue generation with strategic investments in technology and growth. We will regularly review our financial performance and make necessary adjustments to ensure that our revenue streams adequately cover our expected expenses.

By executing this plan, Tvasta Manufacturing Solutions aims to not only become financially sustainable but also to create a strong financial foundation that enables us to continue advancing our mission of revolutionizing the construction industry through advanced 3D printing technology.

Our plan to achieve financial sustainability has already shown promising results. Here are some examples of our success so far:

1. Grants: We have successfully secured a grant of $1 million from the Ministry of Housing and Urban Affairs. This grant has helped us invest in technology development and prototyping, furthering our mission of revolutionizing the construction industry through advanced 3D printing technology.

2. Revenue Generation: Over the past 12 months, we have generated a revenue of $2 million. This revenue has come from various sources, including selling our 3D printers, providing 3D printing services, selling 3D printable materials, and offering architecture & design solutions.

3. Corporate Social Responsibility (CSR) Projects: We have received $300k through CSR projects. These projects allow corporates to fulfill their social responsibilities while enabling us to create positive social and environmental impact.

4. Projected Revenue: We have a robust plan for scaling our revenue, aiming to reach $8 million in the next 12 months. This will be achieved through strategic growth initiatives and the continued delivery of high-quality products and services.

5. Profit Margins: We have achieved a healthy profit margin of 50% on our 3D printer sales. On our construction services, we’ve managed a margin of 10% which we expect to increase as we streamline our processes and scale our operations.

These achievements validate our financial sustainability plan and demonstrate our ability to successfully generate revenue, secure funding, and deliver high-quality, profitable services. Moving forward, we will continue to leverage these strategies to achieve financial sustainability and support our mission of transforming the construction industry.