Phase I (South India) Number of States Product Category Scouting Number of Innovations (/State/Category) Total Innovations Scouted Replicating

& Recording Innovation Cost of Replicating Total Cost of Scouting 3 2 100 600 2 man days 2 man days 2400 man days

Repository & Documentation Segregation of Ideas (50% Success Rate) Process Route (90% of ideas) Product Route (10% of ideas) Segregation Effort (3 ideas/day) Documentation (1 idea/day) Cost of Catalog (one language per state) Total Cost of Documentation Commercially Viable Ideas IPR Application Patent Filing Fee (Individual-India, 3250 rs) Standardization (Variable) Pilot Testing Total Cost of Developing patented products Distribution & Sensitization Number of Hamlets to be covered Total Cost of promotion

300 Ideas 270 30 100 man days 300 man days 300 man days 700 man days 30 ideas 10 man days 50 man days 10 man days 2100 man days 2 man day/hamlet 600 hamlets 1200 man days

Promotion in Target State

Total Phase I Cost 1 man day approx Total Cost approx

6400 man days 300 rs 1920000 rs

Total Hamlets Visited Average Hamlet Size Average Household Size Number of Households Agri based Households (55%)

600 1500 people 5 300 165

Assume, 20% household buys one process innovation Assume, 1% household buys one product innovation Process Innovation Sale Fee per Innovation Total Revenue Cost of Delivering Innovation Innovator Fee Net Process Revenue Product Innovation Sale Premium over Manufacturing Cost Average Sale Size Total Revenue Innovator Fee Net Product Revenue Total Phase I Revenue Verdict Loss 33 100 rs 1980000 990000 40 rs 198000 1.65 10% 5000 rs 495000 5% 247500 445500

Phase II (South+West) Number of States Product Category Scouting Number of Innovations (/State/Category) Total Innovations Scouted Replicating & Recording Innovation Cost of Replicating Total Cost of Scouting 6 4 100 1800 2 man days 2 man days 7200 man days

Repository & Documentation Segregation of Ideas (50% Success Rate) Process Route (90% of ideas) Product Route (10% of ideas) Segregation Effort (3 ideas/day) Documentation (1 idea/day) Cost of Catalog (one language per state) Total Cost of Documentation Commercially Viable Ideas IPR Application Patent Filing Fee (Individual-India, 3250 rs) Standardization (Variable) Pilot Testing Total Cost of Developing patented products Distribution & Sensitization Number of Hamlets to be covered Total Cost of promotion

900 Ideas 810 90 300 man days 900 man days 900 man days 2100 man days 90 ideas 10 man days 50 man days 10 man days 6300 man days 2 man day/hamlet 1200 hamlets 2400 man days

Promotion in Target State

Total Phase II Cost 1 man day approx Total Cost approx

18000 man days 300 rs 5400000 rs

Total Hamlets Visited Average Hamlet Size Average Household Size Number of Households Agri based Households (55%)

1200 1500 people 5 300 165

Assume, 30% household buys one process innovation Assume, 5% household buys one product innovation Process Innovation Sale Fee per Innovation Total Revenue Cost of Delivering Innovation Innovator Fee Net Process Revenue Product Innovation Sale Premium over Manufacturing Cost Average Sale Size Total Revenue Innovator Fee Net Product Revenue Total Phase II Revenue Verdict Loss 49.5 100 rs 5940000 1980000 40 rs 1584000 8.25 10% 5000 rs 4950000 5% 2475000 4059000

Phase III (South+West+Central) Number of States Product Category Scouting Number of Innovations (/State/Category) Total Innovations Scouted Replicating & Recording Innovation Cost of Replicating Total Cost of Scouting 12 6 100 5400 2 man days 2 man days 21600 man days

Repository & Documentation

Segregation of Ideas (40% Success Rate) Process Route (90% of ideas) Product Route (10% of ideas) Segregation Effort (3 ideas/day) Documentation (1 idea/day) Cost of Catalog (one language per state) Total Cost of Documentation IPR Application Patent Filing Fee (Individual-India, 3250 rs) Standardization (Variable) Pilot Testing Total Cost of Developing patented products Distribution & Sensitization Number of Hamlets to be covered Total Cost of promotion

2160 Ideas 1944 216 720 man days 2160 man days 920 man days 3800 man days 216 ideas 10 man days 50 man days 10 man days 15120 man days 2 man day/hamlet 2400 hamlets 4800 man days

Commercially Viable Ideas

Promotion in Target State

Total Phase III Cost 1 man day approx Total Cost approx

45320 man days 300 rs 13596000 rs

Total Hamlets Visited Average Hamlet Size Average Household Size Number of Households Agri based Households (55%)

2400 1500 people 5 300 165

Assume, 40% household buys one process innovation Assume, 8% household buys one product innovation Process Innovation Sale Fee per Innovation Total Revenue Cost of Delivering Innovation Innovator Fee Net Process Revenue Product Innovation Sale Premium over Manufacturing Cost Average Sale Size Total Revenue Innovator Fee Net Product Revenue Total Phase III Revenue Verdict 66 100 rs 15840000 3960000 40 rs 5544000 13.2 10% 5000 rs 15840000 5% 7920000 13464000 Almost Breakeven

Phase IV (India except NE) Number of States Product Category Scouting Number of Innovations (/State/Category) Total Innovations Scouted Replicating & Recording Innovation Cost of Replicating Total Cost of Scouting 20 6 100 4800 2 man days 2 man days 19200 man days

Repository & Documentation Segregation of Ideas (40% Success Rate) Process Route (90% of ideas) Product Route (10% of ideas) Segregation Effort (3 ideas/day) Documentation (1 idea/day) Cost of Catalog (one language per state) Total Cost of Documentation Commercially Viable Ideas IPR Application Patent Filing Fee (Individual-India, 3250 rs) Standardization (Variable) Pilot Testing Total Cost of Developing patented products Distribution & Sensitization Number of Hamlets to be covered Total Cost of promotion

1920 Ideas 1728 192 640 man days 1920 man days 1280 man days 3840 man days 192 ideas 10 man days 50 man days 10 man days 13440 man days 2 man day/hamlet 4000 hamlets 8000 man days

Promotion in Target State

Total Phase IV Cost 1 man day approx Total Cost approx

44480 man days 400 rs 17792000 rs

Total Hamlets Visited Average Hamlet Size Average Household Size Number of Households Agri based Households (55%)

4000 1500 people 5 300 165

Assume, 40% household buys one process innovation Assume, 10% household buys one product innovation Process Innovation Sale Fee per Innovation Total Revenue Cost of Delivering Innovation Innovator Fee Net Process Revenue Product Innovation Sale Premium over Manufacturing Cost Average Sale Size Total Revenue Innovator Fee Net Product Revenue Total Phase IV Revenue Verdict 66 100 rs 26400000 6600000 40 rs 9240000 16.5 10% 5000 rs 33000000 5% 16500000 25740000 Profit

Phase I Number of States Product Categories Innovations Captured Revenue Expense EBIT 3 2 300 445500 1920000 -1474500

Phase II 6 4 900 4059000 5400000 -1341000

Phase III 12 6 2160 13464000 13596000 -132000

Phase IV 20 6 1920 25740000 17792000 7948000

Revenue Expense

4.455 19.2

40.59 54

134.64 135.96

257.4 177.92

300 250 200

150

100
50

0 Phase I Phase II Phase III

Revenue Expense

Phase III

Phase IV