Senior Citizen Homes: Search for a Viable Business Model

The case pertains to the decision regarding business model to be decided by the developer of a proposed senior citizen homes. Due to a number of reasons, enumerated in the study, the elderly people prefer to live in community living projects. The protagonist Mr Pankaj Pawa, MD, Pawa Group, wants a scalable Old Age Home (OAH) concept, which can be replicated across India. Accordingly, he has identified upper-middle-class senior citizens as the potential segment. As per his surveys, this segment is neglected till date. The project will need to be planned as a community project, where the residents become part of the community by sharing common resources. The developer’s main concern is selecting the best business model, which allows him to expand. Simultaneously, the project should not lead to his capital blockage as the real estate market has faced liquidity crisis. Furthermore, he needs to be convinced that the senior citizens are a financially viable customer segment, and an exclusive project for them will be self-sustaining in the long term.