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Multi pronged strategy:

Multi pronged strategy: Retail Trading, Hiring out RO-Machines and Processing & selling RO-Purified Water EPGL to appoint franchisees all over India > 250lph machines machine manufacturing < 250lph units importing from Puricom EPGL Forte: Appropriate technology, affordable terms.

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Multi pronged strategy:

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  1. Multi pronged strategy: Retail Trading, Hiring out RO-Machines and Processing & selling RO-Purified Water EPGL to appoint franchisees all over India >250lph machines machine manufacturing <250lph units importing from Puricom EPGL Forte:Appropriate technology, affordable terms Franchisee Model Up-scaling to Widen Network

  2. Multiple Revenue Sources • Franchisee’s Company Owned Company Operated (COCO) plants: Install, own and operate 250-1000lph RO plants in housing societies, commercial complexes, and sell water @50-60p/ltr - Provides maximum net returns to capital over entire plant cycle. - Have higher social impact - High upfront capital investment - Have a long pay back period • Hiring Out RO-Systems: Place 20-60lph RO-machines on hire @fixed rent /billing as per water meter to corporate clients presently buying 100-500liter RO-purified water in 20liter carboys daily and bill them 60-80p/liter without/ with cooler. - Better control on water quality as also raw water source - Cost effective to End user compared to buying water in carboys • Retail Marketing of RO-systems: Retail market RO-machines to end users - Generates lesser margins per machine - Incomes come from high rotation of capital

  3. Operation Plan Laid Out Start with 20franchisees nationwide each having a 4002+ ft office & marketing/ office staff to hire out RO-units, sell machines and put up COCO plants Franchisee shall pay Rs.10000 on signing the agreement and buy 2units of each of currently offered 10-60lph units at franchisee price. Cost of these units at franchisee rates comes to Rs.116250 plus taxes ex Ahmedabad 10-60lph RO-units will be booked in lots of 50units against deposit of Rs.2000/ machine. For every hiring out machines, franchisee will pay Rs.3000/machine on delivery. On units taken for sale, he will pay franchisee price less Rs.2000. Franchisee will bear cost of cooler/coldwater dispenser which becomes his asset while RO-machine placed on hire will remain Company asset Franchisee will have 2 ITI pass technicians and add technicians @ one per 50 machines. Company will train free training to these technicians in machine installation & maintenance. For maintenance works all consumables will be provided by the company while manpower will be to Franchisee’s account Company will provide marketing literature including a 15min film on need for purified water. Franchisee will pay for conducting local marketing campaigns Franchisee will install one 250-1000lph RO-plant independently or in partnership with EPGL within one month from signing the agreement

  4. Revenue Sharing Between EPGL & Franchisee • In machine hiring, Company will be retain 45% of monthly rental sum and pay 55% to the franchisee when water cooler is provided. In case, cooler is not to be provided, franchisee share will reduce to 40% while 60% will go to the Company. In case,franchisee chooses not to invest in water cooler, Company will provide the same and then the franchisee commission will reduce to 20% of the monthly rental sum. Hiring out rates are Rs.16 per 20liter including water cooler and Rs.12 per 20liter without the cooler. • Company will provide 250/500/1000lph RO-plants against an interest free deposit of Rs.25000/Rs.50000/Rs.100000 respectively to be installed by franchisee in housing societies, commercial complexes, schools, colleges, villages, etc. on equal revenue sharing basis with operator salary and power bill borne by the franchisee and machine maintenance and consumables provided by EPGL. Space (plant room) and raw water will come free from the sponsors. • Franchisee will get commission on basic machine cost @20% for 250lph plants and 15% for 500 and 1000lph plants. Current end user price of these plants is Rs.110000, 195000 and 350000 for raw water with TDS below 3000ppm

  5. Operation Analysis: Trading of 10-60lph RO-machines ------------------------------------------------------------------------------------------------------------ Sl. Machine Type Output Carton Printed Minimum Franchisee Gross Minimum No. (lph) Retail Price End user Price Margin (Rs) Order size (Rs) Price (Rs) (Rs) (at minimum) (Nos.) ------------------------------------------------------------------------------------------------------------ 1. 75 GPD 12 12500 9000 6750 2350 5 2. 135 GPD 25 14500 11500 8625 2875 5 3. 270 GPD     45 28500 19500 14625 4875 5 4. 400 GPD  60 42500 37500 28125 9375 5 ---------------------------------------------------------------------------------------------------------- • Any part replacement under warranty will come from EPGL free • Franchisee will be free to bill nominal installation charge from the end user • EPGL shall soon introduce 80-120lph machines also. Their price structure will be worked out and duly intimated to the franchisee

  6. Trade Names • Machines will be sold/Hired out under brand name Golden RO-Doctors’ Choice. • RO-purified water from the RO-plants owned and operated by an agency will be marketed under the name Shuddh Jal Mridul. Design layouts and contents of carboy stickers will be provided to each agency by EPGL and followed by agency.

  7. Work Scopes: Franchisee • Generate leads on prospects for RO-units on hire • Follow up leads provided by the Company • Close deals/sign Company/Client MOUs as per terms • Raise monthly bills on clients and follow up payments • Record client complaints and depute technicians • Provide periodic maintenance visit to each installation • Maintain inventory of spares to service hired out units • Maintain record of service calls for each machine for quality monitoring

  8. Work Scopes: Company • Provide technical support & specifications • To Provide RO-machines and equipment as per client/company contract • Provide spares and components • Provide leads to the Franchisee • Provide national brand & media support

  9. CAPEX/OPEX for Franchisee over 4years CAPEX/OPEX for the Franchisee: - Machine Hiring operations ---------------------------------------------------------------------------------------------------------------------------------------- Sl.No. Description Years (Amounts in ‘000INRs) 1 2 3 4 ---------------------------------------------------------------------------------------------------------------------------------------- 1. Marketing Manager (30% time) @Rs.3lac/year 90 90 90 90 2. Sales Executives 3nos. 70% time @Rs.1lac/yr 210 210 210 210 3. Technicians 3technicians on 250units @Rs.1lac/yr 250 450 650 900 4. Traveling 200person/yr @Rs.1000per person day 200 200 200 200 4. Receptionist, office boy, accountant: Rs.1.2lac/yr 120 120 120 120 5. Office Space Rental incl. power Rs.1.5lac 150 150 150 150 6. Miscellaneous Rs.50000/yr 50 50 50 50 ---------------------------------------------------------------------------------------------------------------------------------------- Total Out flows 1070 1270 1470 1720 Interest on Deposits @1.25%p.a 187 375 562 750 Deposit with the Company: 1250 2500 3750 5000 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- - Computations on minimal investment basis. Earnings may go up with additional investments. - Franchisee may own & operate a 500lph plant rather than share with the company. - Franchisee may opt to invest in water coolers & take away 55% rather than 20% computed here - We target to install 1000machines in 2years. Analysis is carried out considering this duration as 4yrs - Franchisee will have right to shift between machine hiring out and selling targets

  10. OPEX - RO-Plants for Cluster Users CAPEX/OPEX for the Franchisee: - 5 RO-plants/year in clusters (housing societies, commercial complexes, restaurants, schools, colleges, hospitals, etc.) • Marketing Manager (30% time) @Rs.3lac/yr 90 90 90 90 • Sales Executives 10% of three technicians 30 30 30 30 • Supervisor with marketing manager 100 100 100 100 • Traveling 100mandays/year @ Rs.1000 per person day 100 100 100 100 • Operators 6operators for 5plants @Rs.0.50lac/yr 300 600 900 1200 • Interest on Deposits @1.25%p.a 37 75 112 150 • Deposits with the Company [250 500 750 1000] ---------------------------------------------------------------------------------------------------------------------- Total Outflows: 657 995 1332 1670 ----------------------------------------------------------------------------------------------------------------------

  11. OPEX – Trading of RO-Plants Marketing 50RO-plants/ year Marketing Manager (40% time)@Rs.3lac/yr 120 120 120 120 Sales Executives 3nos. 20% time @Rs.1lac/yr 60 60 60 60 Traveling 150persondays / year @Rs.1000/day*150 150 150 150 -------------------------------------------------------------------------------------------- Total Outflows: 210 210 210 210 ---------------------------------------------------------------------------------------------- *Entire traveling is within the state of operation and includes fare, boarding, lodging whenever applicable

  12. Entrepreneur’s Earnings from the Initiative Gross Outflows (Rs. In ‘000s) On Corporate Hiring 1070 1270 1470 1720 For Cluster Plants 657 995 1332 1670 On Marketing Operations 210 210 210 210 Interest on Deposits @1.25%p.a 225 450 675 900 TOTAL OUTFLOWS 2162 2925 3687 4500 Deposit with the Company 1500 3000 4500 6000 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Revenue share of the franchisee from : Corporate Plants 2340 4680 7020 9360 Cluster Plants (500lphX0.20X6) 1080 2160 3240 4320 Direct sales (50units/yr@Rs.15k) 750 750 750 750 Total Revenues 4170 7590 11010 14430 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Net Contribution 2008 4665 7323 9930 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Value of Company goods under the charge of the franchisee is much higher than the franchisee deposit sum such that franchisee’s money is fully secure. Franchisee will be free to buy RO-units @ franchisee price and be sole beneficiary of hired out / cluster plant operations

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