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BEBB India Private Limited

Vendor Development Program

Proposal for Kirloskar Brothers Ltd (KBL)

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Private & Confidential

About Power2SME

Power2SME- Indias first Buying Club for SMEs launched in 2012

Our Customers- Small and medium enterprises (SMEs)

Our Suppliers-Large manufacturers

We buy from the manufacturer and sell directly to the SME, cutting

out the middle chain of distributors & wholesalers

Private & Confidential1

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Our Vision

Private & Confidential

EMPOWER

SMEs TO

ENABLE THE

INDIA

GROWTH

STORY

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Our Business Model

Private & Confidential

DEMANDAGGREGATION

POWER2SMESHIPSGOODS TO SME

PAYMENT MADETO POWER2SME

PAYMENT MADEBY POWER2SME

SMEs

SUPPLIER

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TRANSFER OF TITLE TO POWER2SME

PRICE NEGOTIATIONS FOR AGGREGATEDDEMAND

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Traditional Supply Chainvs Power2SME

Private & Confidential

Traditional

Power2SME

MANUFACTURER

SMEsCSA Distributor

Dealer/

Retailer

MANUFACTURER

SMEs

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1

Mitigating Volatility

Private & Confidential

Managing supply chain is increasingly challenging for smaller vendors

Consistent commodity prices increases are impacting the bottom line

Consistency in quality of raw material is difficult if they focus on lower

priced raw material

Exchange rate fluctuation has created significant price disparity for

imported products

Existing credit lines are getting squeezed

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Power2SME Proposal

Private & Confidential

Tier 2 & 3 Vendors

o KBL is today working directly with Tier 1 vendors to help reduce their

procurement costs

o The Corporate Supply Chain directly negotiates on behalf of the Tier 1

vendors with companies like Jindal & Hindalco etc to secure the best price

o But there is no such process in place for the Tier 2 & Tier 3 vendors

o Power2SME would like to work with KBL for procurement of raw materials for

your Tier 2 & 3 vendors

o This will be especially relevant for companies which have turnover ranging

from Rs. 5 to Rs. 50 crores

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Proposal (Cont.)

Private & Confidential

Process

o KBL can identify their vendors who are buying similar grade of steel/polymer

o We will pool the demand of SMEs for the raw materials

o We will buy directly from the manufacturer and sells to the SME directly by

cutting out the middle link of distributors and wholesalers and thereby help

reduce the purchase price.

o We will take complete ownership of the entire order process, including

Taking title of the goods Ensuring quality of the raw material Delivery to the factory of the SME Financing of the raw material purchase

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Imports

Private & Confidential

For engineering & commodity polymers, it is extremely difficult for SMEs to import

their requirement directly as that requires commitment to a large quantity

Power2SME can help here by acting as the order aggregator

We will form a consortia of vendors buying similar grade polymers

We will negotiate directly with a large manufacturer abroad for the

combined quantity and get a competitive price

We will enter into individual agreements with each SME for the credit period

that they need to buy the imported raw material

We will import the required polymer in one bulk order

We will then deliver the respective quantities to each member

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Financing

Private & Confidential

Inventory Funding

o We can offer raw material on credit to these vendors

o We have arrangement with NBFCs such as Shriram City & Religare

to structure options for financing purchase of raw materials from us

o We can offer short-term financing (without collateral) for SMEs.

o Unlike other business loans that are for a minimum period of 2

years, we offer structured credit products for 60-90 days period

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Products

Private & Confidential

We can provide the following products

o Steel products such as

Cold Rolled Coils, Plates & Sheets (Mild Steel, Stainless Steel, Alloy Steel) Hot Rolled Coils, Plates & Sheets (Mild Steel, Stainless Steel, Alloy Steel) Structural Angle, Beam, Channel, Hex and Rounds (Mild Steel, Stainless Steel,

Alloy Steel) Wire Rods (Mild Steel, Stainless Steel, Alloy Steel) Galvanized Steel Coils, Plates & Sheets

o Commodity Polymers such as

PVC (Poly Vinyl Chloride) LDPE (Low Density Poly Ethylene) LLDPE (Linear Low Density Poly Ethylene) HDPE (High Density Poly Ethylene) PP (Poly Propylene)

At present we dont deal in DD and EDD steelWe can also explore aluminum and copper if there is sufficient demand from vendors

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Products (Continued)

Private & Confidential

o Chemical Additives such as

Chlorinated Polyethylene (CPE)

Chlorinated Paraffin Wax (CPW)

Epoxidised Soya Bean Oil (ESBO)

Poly Ethylene Wax (PE WAX)

Stearic Acid

Titanium DiOxide

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Value Proposition for vendors

Private & Confidential

ONE STOP SHOP Wide range of products Pan-India Supplier base

FINANCING Credit financing through financial institutions

VALUE ADD SERVICES Insurance Domain name & website FICCI CoSME membership

ONLINE PORTAL

24X7 Availability Online reporting & tracking

ZERO FEES

No service charges ormembership fees

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COMPETITIVE PRICING for raw materials

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Our Benchmarks

Private & Confidential20

Quarterly GMV grown 67x in 6 quarters

FY 2013 FY2014

Diversified products base

Rebasedt

o1

FY2014

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Our Benchmarks (cont.)

Private & Confidential21

Registered base of 15,000+ users

Average Repeat Transactions rate of 65.0%

Consistent Growth In Transactions

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Geographical Spread

Excise Duty registration and

warehouses present in

Rajasthan

UP

HP

Uttrakhand

Haryana

Ourupcoming

Offices

Offices in

Gurgaon (H.Q)

Mumbai

Pune

Ahmedabad

Chennai

Uttaranchal

Himachal Pradesh

Uttar PradeshRajasthan

CORPORATEOFFICE

(Gurgaon)Punjab

Andhra Pradesh

Tamil Nadu

West Bengal

Karnataka

Gujarat

Maharashtra

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Supplier & Product base

Private & Confidential

CONSTRUCTION AUTOMOTIVES &MACHINERY

PLASTICS & PRINTINGINDUSTRIAL &CHEMICALS

PRODUCTS

Steel (Mild,Stainless, Alloy)Anticorrosive

Paints

PRODUCTS

CommodityPolymers

&Engineering

Polymers

PRODUCTS

Titanium DiOxide,CalciumStearate

Stearic Acid,Paraffin Wax

PRODUCTS

TMT Bars, Paints,Cement

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Investors

Private & Confidential

We have raised nearly US$10 million funding from

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Management Team

Private & Confidential

Responsible for businessdevelopment, strategy

formulation and implementation Is the Director & Founder-CEO of

Denave, Indias largesttechnology sales enablingservices company

Built Denave into an INR 1 bncompany from ground upwithout external funding

24 years of experience in sales &marketing, with 13 years as anentrepreneur

Prior to Denave, he has workedat senior positions in firms such asOracle, Microsoft and Tata Unisys

R. NarayanCEO & Founder

Power2SMEsaim is to help

unlock thepotential ofSMEs, whoseprogress is socritical to theIndia growth

story

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Responsible for supplierdevelopment

More than 12 years of

experience in sales &distribution

Was Director at C.P SystemsPvt. Ltd.

Started as an Entrepreneur(Partner, Synergy Worldwide)

Was handling Sales andDistribution for FMCG majorslike Rasna International, ParleAgro, Karam ChandAppliances Pvt. Ltd (brandAllout)

Responsible for businessdevelopment

Over 15 years ofexperience in sales,strategy and corporatedevelopment acrossmobile, eCommerce,media & enterprisebusinesses

Was heading sales &marketing for Apalya,Indias leading mobile TV

provider

Has also worked with eBayIndia, Quest Internationaland BPL

Deepak GuptaVPBusiness Development

Sumit BhatiaVPSupply Chain

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Management Team

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in News

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Private & Confidential

Mainlines, Financials& Magazines

Manufacturing Today

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(Hindi)

Regionals

(Hindi)(Hindi)

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Thank You