Magic Eye Final

8/8/2019 Magic Eye Final

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NATIONAL INSTITUTE OF FASHION TECHNOLOGY

PROJECT REPORT

[OPTHAL SOLUTIONS PRIVATE LIMITED]

DATE: 13TH

SEPT 2010

Submitted by:-

Ayushi Fatehpuria

Roll no-7

DFT-viii

Submitted to:-Mr. Rajdeva


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Opthal Solutions Private Limited

By :

Ayushi Fatehpuria

[email protected]


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Table of Contents

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1. Executive Summary .................................................................................... 5

1.1. Objectives ................................................................................................ 5

1.2. Mission .................................................................................................... 5

1.3. Keys to Success ...................................................................................... 5

2. Company Summary ..................................................................................... 6

2.1. Company Locations and Facilities ........................................................... 6

2.2. Start up Summary ................................................................................... .7

2.3. Company Ownership ............................................................................... 9

3 Management Summary ............................................................................... 9

3.1. Organizational Structure ....................................................................10

3.2. Organizational Chart .............................................................................. 11

4 Product .......................................................................................................11

4.1. Product Description ............................................................................... 12

4.2. Competitive Comparison ....................................................................... 12

4.3. Sales Literature ..................................................................................... 13

4.4. Sourcing ................................................................................................ 13

4.5. Technology ............................................................................................ 13

4.6. Working ................................................................................................. 15

5. Market Analysis Summary ........................................................................15

5.1. Market Segmentation ............................................................................ 16

5.2. Target Market Segment Strategy ........................................................... 17

5.2.1. Market Needs .................................................................................. 17

5.2.2. Market Trends ................................................................................. 18

5.2.3. Market Growth ................................................................................ 18

5.3. Industry Analysis ................................................................................... 18

5.3.1. Industry Participants ....................................................................... 18

5.3.2. Distribution Patterns ........................................................................ 19

5.3.3. Competition and Buying Patterns .................................................... 19

5.3.4. Main Competitors ............................................................................ 19

6. Strategy and Implementation Summary ..................................................19

6.1. SWOT Analysis ..................................................................................... 20

6.1.1. Strengths......................................................................................... 20


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Table of Contents

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6.1.2. Weaknesses ................................................................................... 20

6.1.3. Opportunities ................................................................................... 21

6.1.4. Threats ............................................................................................ 21

6.2. Competitive Edge .................................................................................. 21

6.3. Marketing Strategy ................................................................................ 21

6.3.1. Pricing Strategy ............................................................................... 22

6.3.2. Distribution Strategy ........................................................................ 23

6.4. Sales Strategy ....................................................................................... 23

6.5. Milestones ............................................................................................. 23

7 Management Team ............................................................................... 24

7.1. Personnel Plan ...................................................................................... 25

7.1. Start-up Funding .................................................................................... 27

Conclusion .......................................................................................................... 31


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Opthal Solution Pvt Ltd.

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1. Executive Summary

Opthal Solution Pvt. Ltd. would have the first-mover advantage of producing Magic

Eye in India which would provide vision to the blind. The concept is to enable the

patients to see from their brains and not from the eyes. The manufacturing plant of

the company would be situated in Pithampur, SEZ, Madhya Pradesh while the

offices for selling the product would be opened in 2 metros after 2 years till 2013.An

investment of Rs 3 crore is required .

1.1. Objectives

y

First mover advantage in India, so the company would remain the marketleader. Since the product would be first of its kinds in India, it would be easy

to capitalize on the first mover advantage in the related market segment which

would result into fast return on investment and profit making.

y To maintain 75% market share even post launch of a competitor product.

y To ensure that the product is bought by the target group that falls in A

category ( people who can afford the product with ease) in the first two years

of the launch of the product.

y To expand the market to other market segments from the third year through

providing special schemes, discounts etc without comprom ising on quality

and double the previous year sales.

1.2. Keys to Success

y Tying up with various funding organizations working for the welfare of visually

challenged people.

y Building relationship with Ophthalmologist for recommendation of innovative

product.

y Building in Social responsibility factor by providing vision to underprivileged

segment of society by networking with NGO's.


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y Constant hammering of product uniqueness and debut in the right segment.

y Building a strong distribution network in the projected ci ties.

2. Company Summary

Opthal Solutions Private Limited would develop a path breaking technology for

restoring vision of people who could see once but due to any unnatural cause have

become visually impaired. The product called "magic eye" would be one of its kinds

in India, though there are some researches going on in other countri es and some

people in US and UK have also been benefitted by it (around 18). The product is

intended to be launched in top 2 metros in 2013 and aims at capturing high business

returns due to absence of competition. The company aims at spreading its foot prints

to all A category cities in first year of its operation. Based on the response and result

of the product, the market would be expanded to additional cities down the line.

2.1. Company Locations and Facilities

Opthal Solutions Pvt Ltd would be a manufacturing firm, whose unit would be

located in Pithampur (SEZ sector) in the districts of M.P. Pithampur is an

industrial area and one of the leading sectors in the country. For t he

manufacturing of the products, the land of around 10,000sq.ft would be

required on a continuous lease of 30 years. The warehouse for the company

would be in the factory itself. Thirty percent of the land could be used for

manufacturing, twenty percent for warehouse and fifty percent could be used

for future expansion. The advantages of the SEZ sector would be: -

y No power cuts i.e. the electricity would be available everyday for 24

hours.

y There would be no requirement of a minimum amount of net foreign

exchange earning as a percentage of exports.

y The company would be exempted from the state and local taxes like

sales and purchase tax, octroi, excise tax, etc.

y Goods and services for the development process could be acquired by

DTA without the payment of any duties.


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The companys main offices would be situated in Delhi and Mumbai and

there would be different distributors who will be distributing the product in

these two cities.

2.2. Start-up Summary

Opthal Solutions Private Limited start-up costs would amount to Rs.

3,17,82,600 which would cover the lease expenses for opening the

manufacturing firm and rent of two head offices. These costs would

include incorporation of the company, insurance, electricity, design of the

company logo, rent of offices and IT equipment, and other miscellaneous

expenses. The long term start up costs would include manufacturing plant

lease, furniture, deposits, factory shed and machinery. Inventory kept in hand

would be for 2 months that is of 144 units. The start-up costs would be

financed by owner investment, banks.

Long Term assets Amount (Rs.)

Plant 3,000,000

Furniture 1,000,000

Deposits 100,000

Factory Shed 900,000

Machinery 8,000,000

Total 13,000,000

The assumptions are detailed in the following table and illustration.


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START-UP

Requirements

Start-up Expenses

Establishment registration fees Rs.25,000

Insurance Rs.67,600

Lease rent Rs.20,000

Electricity Rs.100,000

Computer and stationaery Rs.100,000

Factory building Rs.300,000

Misc. Rs.50,000

Total Start-up Expenses Rs.662,600

Start-up Assets

Cash Required Rs.500,000

Start-up Inventory Rs.11,520,000

Other Current Assets Rs.6,100,000

Long-term Assets Rs.13,000,000

Total Assets Rs.31,120,000

Total REQUIREMENTS Rs.31,782,600


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2.3. Company Ownership

The companys selling offices would be incorporated in Bombay and it would

be a private limited company with four partners. Till then, the manufacturing

of the product would be done in Pithampur area.

Partners Percentage of Shares

Ayushi Fatehpuria 20%

Somya Maheswari 20%

Kunal Muchhal 20%

Pratishtha Somani 20%

Rigved Nidai 20%

In view of accidental or natural death of any of the partners in the company, the

partnership share will be reframed.

3. Management Summary

The company would have 5 major players to run it, the CEO, the marketing head,

the sales head, production head and the finance head. All five will have their

equal share in the company that is 20%. T hough all are equal but since the CEOhas more and better experience he will be the head and all other departmental

heads will inform him about the work done.It will be a small company with only 12

employees in the production personnel, 5 in sales and marketing personnel, 4 in

general and administrative personnel and 5 employees in research and


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development personnel. The company will respect all the co-workers and will

treat them well with an handsome salary.

3.1. Organizational Structure

The company will have five major players :-

Ms. Ayushi Fatehpuria, will be the CEO of the company and also the head of

R&D department. She will take care of overall business. Also heads of

finance, marketing and sales will report directly to the CEO.

Mr. Kunal Muchhal, the marketing head will be responsible for all the

marketing communications and takes care of where the money should be

spent and how much.

Mr. Rigved Nidai, the production head will take care of the manufacturing

process and the no. of units to be produced.

Ms. Somya Maheshwari, the sales head will be responsible for how can the

sales of the company be increased.

Ms. Pratishtha Somani, the finance head will look after accounts, cash flows,

credit and depth worthiness of the country.

All of these five heads will be the co-owners of the company and will own

20% of shares each.


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4.1. Product Description

The product, an innovation of electronic technology, could be implanted in the

eye behind the retina at the back of the eye ball. An ultra-thin wire would

transmit light and images to the brain 's vision system and strengthen the

damaged optical nerve. The product will be named The Magic Eye as it is a

miracle for the people who have lost their eyesight in an accident. The

consumer of The Magic Eye will be advised to wear special spectacles which

would contain battery-powered very tiny camera, and also a transmitter,

which would work in sending images to the chip. The chip, enclosed in

titanium casing,making it water-proof and corrosion-proof, and will hopefully

last for at least 10 years inside the eye . Crores of Indians suffer from

blindness caused by age related macular generation. This eye could helppeople who are suffering from retinitis pigmentos a (a genetic condition),

but could not be used for patients of glaucoma. The product would weigh

about 700 grams. The product might not give perfect vision to the

customers but will surely give them a sense of their surroundings.

The product Magic Eye, would be of use for especially those people who

have lost their eyesight and not for those who were blind by birth . The

product would fulfill their need of seeing but it will be done through brains.

4.2. Competitive Comparison

- Since this is a fi rst of its kind product in India, there would no competition in

the market. Hence, the company would benefit as a monopoly player.

- Though the product would be expensive and would be priced at Rs 80,000,

the advantage would be that it would be a rust free and reaction free implant

and so people would go out of their way to buy it. The A category patients

would be the first ones to buy the product as money will be little or no

constraint to them.

- Schemes and discounts would be given on bulk purchase by distributors

and may be passed on to the buyer depending upon the volume and

frequency of purchase.


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- Since the product would be placed with leading surgical equipments

distributors and a robust communic ation of the product would be made at the

opportune segments, the customer would have ease of availability.

4.3. Sales Literature

Brochures of our company would be made which would have a brief account

of our new product 'The Magic Eye'. These brochures would be majorly seen

at ophthalmologists clinic, chemist shops and shops related to e ye

accessories, magazines etc. A large portion of our budget would be spent on

hoardings in metropolitan cities so that consumer i s made aware of the

product. A huge amount would also be spent on Television

advertisements so that mass number of people could be targeted at the same

time.

4.4. Sourcing

The Magic Eye will import most of the machinery and raw materials. Two

second hand machineries would be purchased from Bolton Company

situated in U.K for around Rs.80lacs. First machine will be of Rs.30lacs,

which will be used for making lens for the eye. And the second machine

worth Rs.50lacs will be used for making the structure of eye. A loan of Rs.

80lacs would be taken from two of the local banks, HSBC and HDFC, and

both the machineries would be kept as mortgage in the banks. Other

equipments like camera and transmitter would also be purchased from Bolton

for Rs. 8000 and Rs7000. For the plastic, for making lens and outer body of

the product, a tie up would be done with the Bausch and Lomb company

which would cost around Rs 6000 and 5000 per piece and finally the ch ip

which is made of titanium would be manufactured in our own company for

Rs. 30,000 per piece. Proper relations would be made with the suppliers bypaying them the amount at the right time.

4.5. Technology

Biology and engineering plays a major innovative role in creating a prosthetic

treatment for blindness. A team of neurologist, retinal surgeons and


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physiologists, retinal anatomist, cortical physiologists, computational

neuroscientist, higher cortical plasticity researchers, microfabrication experts,

materials scientists, microcircuit designers, software engineers and

metallurgist work for a Boston company. This team of experts has come up

with a wireless micro-electronic device which is flexibly ultra -thin. It contains

30,000 transistor stimulator chip which is custom -designed. This device shall

control delivery of electrical pulses to the retina. The advantages of this

device are, firstly, it requires a minimal -invasive surgical method for

implantation. Second, it includes ultra-low power design along with a

geometric design which minimizes the area of hardware that is to be fit into

the surgical eye.

The one goal with which we will move ahead would be to develop animplantable micro-electronic prosthesis for patients who are blind due to

retinal problems. We have identified a few diseases and will do our best to

treat them which include 'age-related macular degeneration'' and 'retinitis

pigmentosa''. These are few of the leading causes of blindness in today's

industrialized world. Even with these dilemmas, ample number of nerve cells

remains healthy. These are those cells which connect the eye to the brain.

These healthy cells help in restoring visual rehabilitation with the help of a

prosthesis which will connect to those cells which have visual information andcarry the electrical stimulation to the brain.

This technology of visual prosthesis must get two inputs. Firs t is the

information about the visual signal and second the power for electronics to

work and excite the retina to create corresponding visual image. It is not

practical in long-term implanation to have wires entering the body or batteries

which have a limited lifetime. Therefore it is necessary to direct the visual

signals along with power without wires to the implant. For this wireless

method of communication in our design, we shall use radiofrequency (RF)

transmission.


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Opthal Solution Pvt td.

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Apart from thisprosthesis, therewill beacamerawhichwill captureavisual

scene andwill analyze it in order to convert it into a pattern of electrical

stimulation. he power-data informationwill be forwardedwirelessly to the

receivingcoil placedon theprosthesis. his informationdrives thestimulation

electrodes. he electrical current passing from these single electrodes

stimulates thecells in theretina that arecorresponding to the features in the

visual scene. his processwould then allow the person to see an image

through this agic Eye.

4. . W i

heworkingof the agic Eyewill followasimpleprocedure. A chipwill be

inserted in theeye-ball of thepatient anda tinycameraon theoutercoverof

theeye. A transmittorwill beattached for thecamera tocapture the image

and transfer it to the chip. hechipwill thenbrightenup likeabulband the

imagewill be then reflectedon thesurfacebehind thechip fromwhichdata

will connect to thebrain through thehealthynervecells in theeye.

. l i S mm

Opthal Solutions Pvt td. could see a huge growth in today's fast paced world.agic Eye would be focusingon high-technology manufacturers of eye ball. he

target customerswill beblindpeopleofhigher incomegroupas theproduct'sprice is

set high. Andalsoourmain target will behighgradehospitalsandalsowell known

Opthal surgeons.


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5.1. Market Segmentation

Marketers could approach the market through market segmentation. It is t he

process of splitting targeting customers into different segments. The

segments that are relevant here are demographic, geographic.

1. Income- The cost of the product will be Rs.80,000 which will be higher

than the usual and therefore the target customer people will be higher

income group as they can afford it.

2. City- Our product, the magic eye would be initially available in Delhi and

Mumbai (Maharashtra) as they are metropolitan cities and would fulfill d

target customer category,

3. Country- This product will be launched in India, as the population of

blinds are 3.6 crore which is higher than any other country and therefore

the need of this product is more in India.

Market Analysis

2010 2011 2012 2013 2014

Potential Customers Growth

Old age people 12% 130 146 164 184 206

Accidental blind 20% 648 778 934 1,121 1,345

Other 10% 86 95 105 116 128

Total 18.07% 864 1,019 1,203 1,421 1,679


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Opthal Solution Pvt td.

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Market Analysis (Pie)

5. . S m S

Opthal Solutionswouldprimarilyconcentrateon its target market, peoplewho

are accidentally blind and are of high income group, good hospitals and

opthal surgeons, as thecost of the product is high. here is a huge

population of . croreblinds in India. % of this population is of high

incomegroup, amongst which thecompany targetsonly . %. Indirect sellingwill be done throughdistributors andretail outlets. In addition to it, a

significant amount of investment will bemade inadvertising topromote the

product andcreateproduct awareness.

5. .1. N

anypeoplewereobservedblindbybirthandbyaccidents. heproportionof

accident cases are increasing day by day as compared to people who

areblindby birth, therefore theneed tomake suchaproduct evoked. his

product will be the first tobeproducedof itskind in Indiaand there isnoother

product whichcansatisfy theneed forit.

Oldagepeople

Accidental blind

Other


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5.2.2. Market Trends

We will distinguish ourselves by marketing the product as the product is new,

we will have the first mover advantage so the trends could be set as the way

we want to. Initially the Magic Eye will be only for high income group as the

price is kept high and with no age restrictions. The population of accidental

blind people is most in India and is growing day by day because of the

frequency of accidents increasing. Earlier no such products were developed

here and as technology is increasing at high pace such innovations are

expected. So now the country or rather the world is technology driven and

such innovations are ch anging trends of the society.

5.2.3. Market Growth

The Opthal Solution Pvt. L td. has a total population of 36,000,000 people. Out

of which 12% and above, people are rich that is 4,320,000. If we target only

.02% also, we will target 864 units in a year. We are expecting a growth of

40% increase in sales in the coming 2 years. India needs approximately of 2.5

lacs donated eyes every year from which all the eye banks could only collect

25,000 eyes and out of which 30% cant be used. Even the eye surgeries

in India have increased from 3% in 1994 to 42% in 2002.

5.3. Industry Analysis

Medical equipments has been a growing industry in past and is still growing

because of technological innovations. The medical industry is constantly

growing at 23.3% every year which increases the growth of the companies. In

the case of Magic Eye, there will be no such competitors in this industry in

India, therefore the market share will be captured by Magic Eye alone which

in turn increases the growth of the industry.

5.3.1. Industry Participants

There will be no participants in the manufacturing equipment for surgical

industry in India which will produce the same product as The Opthal Solutions

Pvt.Ltd. does. Therefore the company will have its monopoly.


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5.3.2. Distribution Patterns

In the case of our company, there will be one manufacturing unit in Pithampur

and two distributing units which will be in Delhi and Mumbai. It will be a form

of indirect marketing in which the consumers will buy the product from the

distributors. The transportation from the manufacturing unit to the distributors

will be given to Gati.

5.3.3. Competition and Buying Patterns

As the competition is less in this market therefore the customers will be left

with less alternatives. Looking at the disadvantages and advantages of the

eye transplant, customers would prefer Magic Eye instead of transplant.

Some of the features of our product 'The Magic Eye' will be:-Firstly, it will beless expensive and will take less time as compared to the eye transplants.

Also the structure of eye will be made in such a way that it will suit all kinds of

human bodies.

5.3.4. Main Competitors

As such there will be no other competitor available in the market which will

produce the same kind of product. But still there are eye transplants being

done by the opthal surgeons, which will be the only competitor for the Magic

Eye. The advantage of the eye transplant is that it is perfectly attached in the

eye hole and it looks as if it is the natural eye. An d the disadvantages include

time constraint, higher cost, and most importantly the eye fixed may not suit

the body. So there will be no threat to our product as the advantages of our

product will be more as compared to the transplant .

6. Strategy and Implementation Summary

The company's strategy would be to target people who have higher standard

of living and could pay high for such medical issues. These target audiences

will be approached through brouchers, print media and telecommunication.


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More to this, there will be hoardings in metros and special interactive

seminars conducted by well -known eye specialists.

6.1. S OT Analysis

The SWOT analysis gives the company an opportunity to test the internal

strengths and weaknesses of the company. It also examines the

opportunities which are there for the company and also the threats to the

company.

6.1.1. Strengths

The strength's of the Magic Eye is as follows -

y First Mover Advantage : This product would be first of its kind

in India and would be a unique idea, therefore it is one of the

biggest strength of the Magic eye.

y Location : The location of manufacturing unit of the company

would be in Pithampur (SEZ Sector), which is an industrial area.

This sector has many advantages explained earlier, which inturn

becomes the strength of the company.

y Clear vision of the maket need : The Opthal Solutions Pvt Ltd

knows what it takes to bui ld an eye like the Magic Eye. It knows

the customers, the target market and the technology required to

maintain the quality of the product.

6.1.2. eaknesses

The company will also have some weaknesses which are as follows -

y High Cost : The cost of the Magic Eye will be high, therefore

only rich people will be able to afford it.

y Low Customer Base : The target market chosen for the Magic

Eye will be very low. The company will only target rich people

and will leave behind the lower and medium income group.

y Recognition : One of the major drawbacks of the product will

be that, it will not picture out the clear vision of the person


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standing in front of you but will give people a sense of their

ambiance.

6.1.3. Opportunities

There will be some opportunities available with company which will be

as follows:-

y Growing Accidental Cases : Growing of accidental blind is a

big problem in today's world, therefore the demand for the Magic

Eye will increase. This can be taken as an opportunity by the

company.

6.1

.4. Threats

The only threat to the company will be that seeing this product and

technology, many people would try and come in the market with

different technology and compromise with the price and quality.

6.2. Competitive Edge

The Magic Eye competitive edge comes from the advantage of being a first

mover and also having relationships with Bolton company. Untill now no other

company has innovated such a product in India and the only other alternative

available is the eye transplant which is costlier and takes time. Moreover the

quality, features, its relationships with other distributors and transp orters and

latest technology will also be the reasons which will give the competitive edge

to the Magic Eye.

6.3. Marketing Strategy

The marketing strategy of our company will target its customers by the use

of print media through brochures and technical magazines. Brochures can

be picked up from doctor's clinic, chemist shops and eye accessory

shops. The marketing of the product will also be done by telecommunication

as mass number of people is targeted. It also plans to put up hoardings in

metropolitan cities and sponsor lectures by famous and renowned eye


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specialists so that people get aware of the pro duct. The company will hire an

advertising company to consult. Our product will be a high quality and

expensive product and will be especially for the people who are blind

accidently. It will be a high technology product and will target high income

group. Our marketing strategies will mainly target the needy and give the

right information to right people as the product will be high priced and many

middle income and lower income group wont be able to afford it. Therefore

we will make it sure that people who can afford it, will know about its

existence and use it.

6.3.1. Pricing Strategy

As the product is a technical innovation and the company believes in

giving the best quality the price will be a little high, about Rs. 80,000.

There will be no other competitors present in the market therefore the

price can be kept the way company wants. Also according to

researches done by researchers it has been proved that people do

connect price with quality, and higher the price; higher is the quality.

The pricing (per unit) has been kept according to the following

expenses -

1.RA MATERIAL:

CAMERA- Rs.3200

TRANSMITOR- Rs.2000

CHIP(IMPORTED)- Rs.30,000

LENS and PLASTIC FOR OUTER BODY- Rs.4000

2.VARIABLE COST- Rs.16,800

3.FIXED COST(MO THLY)- Rs.716,833


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6.3.2. Distribution Strategy

Initially the product will be available only in Mumbai and Delhi and no

other places and people who would want to use this product could

collect it from either of the places and get it fit with the help of

specialized and trained doctors. The company will tie-up with GATI for

transporting the product from the manufactured centre to the outlet.

Distribution channel will not be preferred as it will increase the cost.

The product will be made at pithampur and then will be sent to the

outlets in Mumbai and Delhi.

6.4. Sales Strategy

For the sales of the p roduct, the company will use indirect sales strategy. T heproduct from the manufacturing unit will be transported to the cen tres in

Mumbai and Delhi and will be sold there. According to the analysis total

number of people targeted who are accidently blind and comes in the

category of upper segment of the income group are 4,320,000. Out of which

in the first year only 864 people will be targeted and the sales growth is

expected to increase by 40% in coming two years and will reach

approximately 1694 units in the year 2010. To increase the sales awareness

among people is necessary and this will be done by advertising of the

product. Future planning is to increase centers in different cities and states in

the coming years when the sales of the product increases. We also plan to

give credit to the customers upto 30 days from the day they have bought it.

6.5. Milestones

The following table shows the important milestones for a start -up business

and their budgets along with the dates and the people incharge. For all the

administrative work, Ayushi Fatehpuria will be responsible, such as

Establishment registration fee which will be of Rs. 25,000 for one year period

from the date of April 4,2011 till April 4,2012. For the rent, a budget of

Rs.6,00,000 and the period is of one year that is April 4,2011 till April 4,2012

is allotted. Lease on land will also come in the section of administration

budget of Rs.3,600 for the time period of April 4,2011 till April 4,2012. R&D


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department will incure expenses of Rs. 50,000 per month. For the marketing

department Mr. Kunal Muchhal wil be responsible and he will look after

promotional activities which will have a budget of Rs. 3,38,400 and the period

will be for one year starting on April 4,2011 till April 4,2012. Marketing

strategies will also be looked by him .The budget for this will be Rs. 1,20,000

and the time period will be April 4,2011 till April 4,2012. Sales department will

be controlled by Ms. Somya Maheshwari and budget for sales promotion will

be Rs. 60,000 and for the production department , money spent on packaging

is Rs. 3,45,600 for the time period of one year that is April 4,2011 till April

4,2012 under Mr Rigved Nidai. Ms. Pratishtha Somani will handle the

purchase department which will have a budget of Rs. 2,822,400 and that of

the distribution department will be Rs.434,400.

Milestones

Milestone Start Date End Date Budget Manager Department

Establishment registration fee 7-4-2011 7-4-2012 Rs.25,000 Ayushi F. Administration

Promotional events 7-4-2011 7-4-2012 Rs.338,400 Kunal M. Marketing

Inventory of raw materials 7-4-2011 6-6-2012 Rs.2,822,400 Pratishtha

S.

Purchase

Sales promotion 7-4-2011 7-4-2012 Rs.60,000 Somya M. Sales

Marketing stretagies 7-4-2011 7-4-2012 Rs.120,000 Kunal M. Marketing

R & D expenses 7-4-2011 7-5-2012 Rs.50,000 Ayushi F. R & D

Packaging 7-4-2011 7-4-2012 Rs.345,600 Rigved N. Production

Distribution 7-4-2011 7-4-2012 Rs.434,400 Pratishtha

S.

Sales

Rent 7-4-2011 7-4-2012 Rs.600,000 Ayushi F. Administration

Lease on land 7-4-2011 7-4-2012 Rs.3,600 Ayushi F. Administration

Total Rs.4,799,400

7. Management Team

The CEO of the company, Opthal Solutions pvt.ltd. will be Ms. Ayushi

Fatehpuria, aged 40. She is also the R&D manager and carries an


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experience of 20 years in the field of eye. Sh e has worked as the chief

financial officer in Baush & Lomb. She has done her MBA from Syracuse

University. All the heads of each department reports her .

Mr. Kunaldeep Muchhal, aged 35 will be the marketing head and completed

his management degree from the Stanford University . Earlier he was

working as the marketing head in an advertising company and carries an

experience of 15 years.

Ms. Somya Maheshwari, aged 24 will be the incharge of the sales

department. She has completed her MBA from the London School Of

Economics. She had worked as sales and marketing representative in her

father's firm.

Mr. Rigved Nidai, aged 37 will be incharge of production departme nt. He has

completed his MBBS from Gauhati University in 1991. He d id his post

graduation in ophthalmology from Sankara Nethralaya,(Chennai) followed by

Cornea fellowship at the same institute. He was a fellow of the royal college

of surgeons of Edinburgh (UK). He also completed his Master of Medicine

(Ophthalmology) degree from the National University of Singapore

Ms. Pratishtha Somani, aged 27 will be the finance head of the company and

has done her MBA degree from IIM-Ahemdabad in finance. She has worked

as a software engineer for three years before doing her post graduation.

7.1. Personnel Plan

The personnel plan is divided into four parts -

1. Production personnel- The employees in this section will be 12 and the

average per person will be Rs. 60,000 in the year of 2011. In year 2012 the

number of employees will increase to 15 but the average remains same. The

average per person each month will be Rs. 5000.

2. Sales and Marketing personnel- The employees in this section in the

year of 2011 will be 5 and the average per person will be Rs. 84,000. In the


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next year the number of employees and the average per person both remain

same.The average per person in each month will be Rs. 7000.

3. General and Administrative personnel - The employees in this section

will be just 4 with the average per person of Rs. 72,000 in 2011. In 2012, the

employees work will 6 and the average per person will be the same The

average per person of each month will be Rs. 6000.

4. Research and Development personnel-The employees in this section

will be 5 and the average per person Rs. 2,40,000 in the year of 2011. The

number of employees might be increased to 6 but the average per person will

remain same in the next year.The average per person of individuals each

month will be Rs. 20,000.


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Personnel 2011 2012

Production Personnel

People 12 15

Average per Person Rs.60,000 Rs.60,000

Subtotal Rs.720,000 Rs.900,000

Sales and Marketing

Personnel

People 5 5



General and Adminstrative

Personnel

People 4 6



Research and Development

PersonnelPeople 5 6


Subtotal Rs.1,200,000 Rs.1,440,000

Total People 26 32

Total Payroll Expenditures Rs.2,628,000 Rs.3,192,000

7.2. Start-up Funding

Opthal Solutions Pvt. Ltd. has start-up expense of Rs.6,62,600 and start -up

assets worth Rs.3,11,20,000. The start-up cost will be funded by different


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sources such as banks, Angle investors, partners, other family members and

friends. Long-term liablity (funding) which is Rs.8,000,000 will be taken from

bank at an interest rate of 12% for which mortgage will be given in the form of

machinery. Other interest-free liabilities are of Rs.1,782,600 which will be

taken from family members, friends. All the 5 partners will invest

Rs.3,000,000 each into the company to fund the start -up cost. For rest of the

amount of Rs.10,000,000 investment will be seeked from Angle investors. On

this investment, company will provide him with some stake in the company

which will be decided later on.


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Start-up Funding

Start-up Expenses to Fund Rs.662,600

Start-up Assets to Fund Rs.31,120,000

Total Funding Required Rs.31,782,600

Assets

on-cash Assets from Start-up Rs.30,620,000

Cash Requirements from Start-up Rs.500,000

Additional Cash Raised Rs.0

Cash Balance on Starting Date Rs.500,000

Total Assets Rs.31,120,000

Liabilities and Capital

Liabilities

Long-term Liabilities Rs.8,000,000

Accounts Payable (Outstanding

Bills)

Rs.0

Other Current Liabilities (interest-

free)

Rs.1,782,600

Total Liabilities Rs.9,782,600

Capital

Planned Investment

Ayushi Fatehpuria

Rigved idai

Rs.3,000,000

Rs.3,000,000

Kunal Muchhal Rs.3,000,000

Somya Maheswari Rs.3,000,000

Prathista Somani Rs.3,000,000

Angle Investor Rs.10,000,000

Total Planned Investment Rs.25,000,000


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Loss at Start-up (Start-up

Expenses)

(Rs.662,600)

Total Capital Rs.21,337,400

Total Capital and Liabilities Rs.31,120,000

Total Funding Rs.31,782,600


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CO CLUSIO :-

So, I think my product Magic Eye would be a successful one and all the dataneeded have been put here. I look forward for a positive response for my report .

Suggestions are welcomed.


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END

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