CIBI

Coimbatore Innovation & Business Incubator

A potential TBI under NSTEDB scheme of DST

Promoted by KCT, Coimbatore

Journey of Coimbatore

Coimbatore 3.0 Coimbatore 2.0

Next 20 years Technology Powered Knowledge Economy Global Connect

Last 50 years Indigenous SME Industry Entrepreneurial Roots High Growth Urbanizing Society

Coimbatore 1.0
Pre-Independence Agrarian Economy Rural Society

Innovation & Entrepreneurship

KCT
Who we are

Key Objectives
Seeding a grassroots entrepreneurial revolution
Seed, build and evolve a grassroots and youth centered technology intensive innovation and entrepreneurial revolution creating enterprises, jobs, and wealth, contributing to the overall economic and social progress of the greater Coimbatore region;

Entrepreneurship HUB to transform IDEAS to ENTERPRISES

Create a dynamic entrepreneurship hub connected to a large global ecosystem of mentors, investors, and business leaders, where aspiring innovators, first-time entrepreneurs, ambitious small businesses, passionate graduates with a million dollar idea, and innovative academics exploring commercial success go to to transform their Ideas into Enterprises;

Innovative, Impactful, Profitable, Growth Businesses

Generate robust demand from among students, professionals, small & family businesses, women entrepreneurs, social enterprises, and academics to create a large number of profitable and scalable businesses, achieving global benchmarks in technology impact, market potential, industry value creation, and investment returns;
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CIBI First 5 Years Vision

on People I
Make Entrepreneurship a Primary Career Choice Impact across Socio-Economic segments

on Innovation & Business II

Meaningful, Impactful, Technology intensive Innovations Coimbatore a Hot Spot - World-Class Products & Scalable Businesses

CIBI IMPACT

on Institutions III
Entrepreneurship focus as a DIFFERENTIATOR Outcome based Technology Education - Role Model status

on Ecosystem IV
Role model INCUBATOR - Our Practices become Templates Ecosystem Keystone - Investors, Mentors, Global Partners

on City (Region) V
From S&T Education Hub to S&T Innovation & Business Hub National and Global Visibility

Opportunity & Potential

CIBI - Technology Thrust Areas - Innovation & Business

CIBI Thrust Areas

Electronics Technology Services
Engineering & Industrial Design

Embedded Systems

Industrial Automation

Technology Enabled Services

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CIBI - 5 Year Vision

CIBI - 5 Year Goals

Incubator Strategy & Business Model

10

Marketing CIBI - Ecosystem Building

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Leadership & Governance

Section-25 Company; Limited by Guarantee Company Name confirmation recd. from ROC

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Management Team

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Location of CIBI
KCT Tech Park
IT

Park & Business/Commercial Center

Owned by the same Trust as KCT (RAF) Total 100,000 sq.ft space >2000 Employees Tenants: Cognizant, Ford, Firstsource (+10) IT/Business Services CBE City Limits location on Highway Rs. 20 per sq. ft current rental income for KCT

10,000 sq.ft dedicated space (Phase-I) Additional 9000 sq.ft (Phase-II) STPI Incubator (4,000 sq.ft) Entrepreneurship Education, Training, Development Center (5,000 sq.ft)

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Incubation Process & Policies

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Project Budget & Funding Plan

CIBI Project Funds Summary for 5 years
Year 1 Year 2 Year 3 Year 4 Year 5 in Rs. Lacs Total %

Capital Cost
DST contribution HI contribution Total Capital Cost DST contribution1 HI contribution2 CIBI self-contribution3 Total Recurring Cost DST contribution HI contribution CIBI self-contribution Total Project Cost 385 180 565 53 15 23 91 438 195 23 656 160 0 160 50 21 40 111 210 21 40 271 58 0 58 42 26 71 139 100 26 71 197 12 0 12 25 29 127 181 37 29 127 193 0 0 0 0 31 165 196 615 77.4% 180 22.6% 795 100.0% 170 23.7% 122 17.0% 426 59.3% 718 100.0% 51.9% 20.0% 28.2%
100.0%

Recurring Cost

Total Project Cost4

0 785 31 302 165 426 196 1513

1 DST Contribution towards Recurring Costs is deficit support for Operational Losses; 2 HI Contribution towards Recurring Costs is up to 50% subsidy on Power, Utilities, Repairs & Maintenance costs; 3 CIBI self-contribution is Revenues from CIBI Operations; 4 Operational self-sufficiency in the 5th year;

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CIBI - 5 Yr Operations P&L

Recurring Expenditure & Income Statement (in Rs. Lacs)
Recurring Cost Items
1.Manpower cost 2.Travel 3.Utility and Maintenance 4.Marketing Promotion and advertisement 5.Networking and training 6.Consumable 7.Other expenses (if any)* 8.Miscellaneous and contingencies A. Total Expenditure

Year 1
34.50 6.50 30.00 15.00 2.50 0.50 1.00 1.00 91.00

Year 2
39.00 6.50 42.00 17.00 3.00 0.50 2.00 1.00 111.00

Year 3
51.50 7.00 52.00 21.00 3.00 0.50 2.00 2.00 139.00

Year 4
85.00 8.00 58.00 21.00 4.00 1.00 2.00 2.00 181.00

Year 5
96.00 8.00 62.00 21.00 4.00 1.00 2.00 2.00 196.00

Total
306.00 36.00 244.00 95.00 16.50 3.50 9.00 8.00 718.00

Revenue
1. Revenue from operations 2. Support from HI towards 50% of Power, Utility & Maintenance costs B. Total Revenue 23.00 15.00 38.00 40.00 21.00 61.00 71.00 26.00 97.00 127.00 29.00 156.00 165.00 31.00 196.00 426.00 122.00 548.00

Net income [B-A] (surplus+ / deficit-)

-53.00

-50.00

-42.00

-25.00

0.00

-170.00

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CIBI - 5 Yr Revenue Plan

CIBI Revenue Plan for 5 years (in Rs. Lacs)
S. No
1 2 3 4 5 6

Revenue Source
Rental Income Training & Mentoring Fees Advertisement Revenues Sponsorships Interest Income Equity Buyout Total Revenue

Year 1 Year 2 Year 3 Year 4 Year 5

1.80 5.00 5.00 11.00 0.20 0.00 23.00 4.50 13.00 6.00 11.00 0.50 5.00 40.00 6.30 29.00 8.00 12.00 0.70 15.00 8.20 54.00 9.00 15.00 0.80 40.00 9.20 64.00 15.00 16.00 0.80 60.00

Total % Share
30.00 165.00 43.00 65.00 3.00 120.00 426.00 7.04 38.73 10.09 15.26 0.70 28.17 100.00

71.00 127.00 165.00

Self-sustenance beyond 5 Years

Increased Debt/Equity investments into Ventures sourced from Private Venture Fund (Angel/VC partners)
Higher equity payouts & interest income Continued HI subsidy towards Power, Utilities & Maintenance costs Strategic Incubation: Sector focused, Global market access, India specific R&D for MNCs

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Location of CIBI
KCT Tech Park
IT

Space Utilization CIBI Office Conference Room Equipments Room - E & A Equipments Room TS Cafeteria Dormitory with Change Room & Shower Room Common Facilities Toilet Common Facilities AHU/AC/ELECTRICAL Common Area - Lobby/Passage

Size (L x B, ft) 20x40 20x20 20x30 20x30 20x30 20x20 24x30 18x18, 20x10 30x20, 100X5,60X10 40x90

Park & Business/Commercial Center

Owned by the same Trust as KCT (RAF) Total 100,000 sq.ft space >2000 Employees Tenants: Cognizant, Ford, Firstsource (+10) IT/Business Services CBE City Limits location on Highway Rs. 20 per sq. ft. current rental income for KCT

Area (sq. ft) 800 400 600 600 600

400

720

10,000

sq.ft dedicated space (Phase-I)

580

Additional 9000 sq.ft (Phase-II) STPI Incubator (4,000 sq.ft) Entrepreneurship Education, Training, Development Center (5,000 sq.ft)

1700

Incubatee space Total Area - CIBI Phase - II STPI Incubator Entrepreneurship Education, Training & Development Center

3600 10000

4,000

5,000

DORM &
TOILETS ELECTRIC CHANGE SWITCH ROOM ROOMS

CAFETERIA 900 SFT

900 SFT

CONF ROOM 900 SFT

INCUBATEE SPACE 3600 SFT

EQUIPMENT ROOM 600 SFT

STAIRS

LIFTS

EQUIPMENT ROOM 600 SFT OFFICE ROOM 600 SFT LOBBY 900 SFT

INNOVATION & ENTREPRENEURSHIP TRAINING CENTRE 5000 SFT

FIRE EXIT

FREE SPACE 4000 SFT

STAIRS

AHU

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FLOOR PLAN FOR KCT-TBI AT TECH PARK GROUND FLOOR

CIBI Core Team

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Investment Policy Criteria

Entrepreneur (Founders & Management) Assessment: Background, experience, references and credentials of the entrepreneur(s) & management team History of professional/business association of Founders/Management Team Financial, Time commitment; Passion for Entrepreneurship Strong domain expertise, sector/market knowledge with practical business experience Technology Assessment: Innovation potential or Degree of Technology involved in the Business Relevance to the Technology Thrust Areas broadly but specific relevance to any sub-areas Business Assessment: Financial viability with the capacity to service Incubator debt within the defined milestones Growth potential based on market expansion, region/geo expansion, product line/portfolio extension etc. Extent of Innovation in the core Technology and potential impact of its applications Innovations in Business Model or Business Process leveraged to build higher Enterprise Value-Added (EVA) Potential for IP Generation and scope for exits through Technology Licensing or M&A Portfolio management imperatives and mandates Incubator Needs Assessment: Clear understanding of the role of the Incubator in supporting the venture at this stage Office space, technology requirements and openness to opt-in for hybrid Incubation taking minimal space in the Incubator

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Graduation Policy Criteria

Guideline Tenure Period: Products Business - Min 18 months - Max 36 months Services Business - Min 12 year - Max 24 months Student Business - Min 24 months - Max 36 months Graduation - Pre-Tenure Achievement of stated goals as per defined milestones Readiness to sustain independently (No Dues clearance) Equity dilution or Debt repayment demands during pre funding due diligence Graduation - On-Extended Tenure Review and Approval by Investment Committee Redefined goals, milestones, strategies, investments Termination Violation of agreed terms & conditions, conflict of interests Legal/ethical issues from malpractices
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CIBI - 5 Yr Funding Plan

CIBI Project 5 Year Funding Plan (in Rs. Lacs)
1. HI contribution toward existing/new land & building1 (10,000 sq.ft)** 130
** 10,000 sq.ft of dedicated floor space in KCT Tech Park (Software/IT SEZ) for Incubator space ** Additional 4,000 sq.ft in KCT Tech Park planned as Center for Entrepreneurship development, training and related events ** Additional 4,000 sq.ft in KCT Tech Park planned for STPI Incubator

2. Contribution of HI toward Capital Costs2

Capital costs towards dedicated technology infrastructure including furniture, Lab Equipment, Software, Utilities, Toolkits etc.

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3. Capital Grant (Capital Costs) from DST for 5 years 4. Recurring Grant (support for Operating deficit) from DST for 5 years 5. Revenue Generated by Incubator in 5 years 6. Contribution of HI towards Recurring Costs for 5 years Up to 50% on Power, Utilities, Repairs & Maintenance Expenditure TOTAL PROJECT COST 3 Private Venture Investment Fund
1

615 170 426 122

1513 200

Excludes the Opportunity Cost of Rs. 200 Lacs of foregone rental income in 5 years for 19000 sq.ft of commercial space; 2 Excludes the Cost of shared lab/technology equipment amounting to Rs. 110 Lacs available for incubatees to use; 3 CIBI (backed by KCT) taking the support of Sakthi Finance (a Sakthi Group NBFC business) to raise capital from VCs/HNIs shall create a private venture fund to infuse debt/equity capital into the Incubated ventures; Revenue from Interest Income and Equity Buyouts generated from such capital infusion is not considered in this funds and budget planning exercise - Indicated to highlight the expression of intent of the HI (KCT) with the support of Sakthi Finance to bring venture funding to the CIBI;
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If I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning

An ounce of practice is worth more than tons of preaching

Be the change that you want to see in the world

Thank you