Executive summary

B-Plan name: Innovation Unified

Business concept : [25%]

1. Describe precisely your product/service/Intellectual property license/process etc.

Innovations Unified has developed a unique scientific process which can provide the market
with low cost nanotubes having industry standard quality. The process, with a small
modification can also be used to produce nanoparticles. Both the mentioned products are
building blocks for the nanotechnology industry and have huge market potential.

2. What are the key benefits that your product/service specifically provides to address the customer’s
problem/challenge?

There are fertile business opportunities in the nanotechnology sector due to relatively low
barriers to entry, a broad Intellectual Property landscape, and customers looking forward to
integrate nano-materials into their products for higher performance.

3. How is your product or service different from existing solutions? Mention the factors which give you competitive
advantage over the rest?

There are very few production units, none of them produce single walled
nanotubes at commercially viable prices. With the unique synthesis mechanism developed by
us, we intend to provide the same at a competitive yet acceptable price for different
organizations working in the field of nanotechnology.

Market analysis: [12%]

1. What is the market in which your company will operate?

Current commercial applications for nanotubes in India include conductive polymers, advanced composites, fibers
and displays. Industries already utilizing these applications include automotive, aerospace, household appliances,
sporting goods, telecommunication equipments, and medical. Global Carbon Nanotube (CNT) production
capacity is currently over 2.5 metric tons per day and to meet the growing demands due to rapid nanotechnology
based product development, it has to increase manifold.

2. Identify the segment of the market you can serve or you plan to serve in future.

The global market for nanotubes in 2002 has already reached approximately $12 million. This is expected to grow
exponentially over the next three years, reaching perhaps $700 million in 2005. At present, technologies based on
CNTs are either commercialized or on the verge of commercialization.
Even if only these sets of technologies are considered, nanotechnology shows a great promise for the future.
Predictions show that a lot more technologies will soon get revolutionized by nanotechnology. These technologies
primarily include bio-pharmacy, micro-electronics industry, energy sector and defense applications. The market
for carbon nanotubes shows a promising future independent from the expected growth of nanotechnology, since its
integration with traditional technologies has already been proven to provide enhanced properties.

3. Describe the growth rate and recent trends of your market that may represent disruptive changes or opportunities
for new players like you?

According to market predictions, the nanotechnology sector will reach a market of $1 trillion
 by 2015 accounting for approximately 10% of worlds total global industrial output. The current price of nanotube
in the global market is acting as a bottle neck to the predictions; those who will provide nanotubes at lower prices
will be the ones to break this bottle neck and gain maximum from the predicted
nanotechnology market outgrowth.

4. Who are your potential and current, direct and indirect competitors in market?

Innovations Unified will not face any direct market competition in the local Indian market. If
predictions are to be believed, the market will observe a rapid growth in the nanotechnology
sector, reaching a peak by the year 2010. We believe that with proper planning and gradual
shift to end consumer product (B2C) can help us withstand the global competition, at the
same time consolidate our position in the global market.

5. How do you anticipate established companies reacting to the introduction of your product/service?

There is a small competitive risk from global competitors, which are fortunately few in
number, but their presence can’t be ignored. By the time we face a competitive challenge in
India from global MNCs, Innovations Unified would have already set up a network in India
with research and defense institutions, giving a strong hold against them

6. State the entry and exit barriers of your market?

If experts are to be believed, the nanotech bubble will reach a peak during the years 2007-
2010, however, the case of delayed convergence to expected results for the market cannot be
ignored. In such a case, the company will use its rich Intellectual property and developed
technology to go public (IPO) or attract acquisition by an already established enterprise.

Customer analysis: [15%]

1. Who is the potential customer/consumer of your product/service? Describe the profile of your first customer.

Current commercial applications for nanotubes include conductive polymers, advanced composites, fibers and
displays. Industries already utilizing these applications include automotive, aerospace, household appliances,
sporting goods, telecommunication equipments, and medical. We intend to provide single walled nano tubes to
these organizations at much lower price.
2. Mention if you have existing or beta customers already.
No

3. Where are your target customers located?

Our First venture in this field will be Single Walled Carbon Nano-tubes (SWNT) which is considered to be a very
high margin yet low competition market. We are aiming at industries in Maharashtra. We believe that with proper
planning and gradual shift to end consumer product (B2C) can help us withstand the global competition, at the
same time consolidate our position in the global market.

4. How will you reach your customers? State all the methods of your Sales Strategy.

The crux of SWNT market lies in supplying quality products at very competitive prices. This
can be achieved with our unique proprietary process, geographical location and availability of
skilled labor at a much lower cost; we believe that not only can we supply SWNT to existing
segments at a lower price and required quality, but also bring SWNT’s current market share
to an astonishing 25% by providing it to many consumers who are reluctant to use SWNT
due to its high price. With the outgrowth of nanotechnology sector, demand for cost effective
SWNTs is bound to increase.
 Business System Description: [20%]
1. How will the product/service be developed (possible plan to build the product or implementing the service to check
the feasibility option), manufactured, marketed and sold?
The major skeleton of the initial process/product under discussion has already been developed and patented. Only
small changes are to be made to tailor it directly for commercialization purposes. We have a dedicated research team
in place to keep abreast with the aggressive market competition.

The manufacturing cycle has been divided into three phases.

Phase 1: Testing and Analysis of existing nanotube synthesis plants
Phase 2:Optimization of the process proposed
Phase 3:Industrial Scaling with manufacturing on a large scale

The marketing will mainly be via direct and recommendation based marketing within the industry. We intend to tap
into the networks of our initial customers to expand and intensify our customer base.

2. How will your business generate profit? Describe your Revenue Mechanism?
The major source of the income will be via licensing of the patent. In the later stages it will shift to manufacturing
centers that we plan to establish.

3. Does your business create measurable social and/or environmental benefits? If possible quantify these benefits.
Describe how this will add value to your business proposition.
There are no direct social or environmental benefits. However the cost of various consumers good will be affected by
the low cost solutions offered by us.

4. What are your major short-term goals?

We plan to work on the analysis and study of the existing production processes and make suitable changes to our
process to suit it for direct application to industry. This is in line with the description of Investment Phase I.

Finance analysis: [8%]

1. How much capital do you require for starting up? How do you plan to obtain it? Describe both external as well as
internal sources.

The company has planned the startup strategy in three phases; the first phase, which is very much complete,
compromised of testing and analysis of existing nanotube synthesis plants. It helped in conceptualizing our unique
process which has been validated by the experts in the industry. The second phase for optimization and the third
for industrial scaling cumulatively cost around Rs 3.50 crores and will span over a period of three and half years.
However, the company will start generating revenue after the conclusion of phase II, with the initial investment of
Rs. 8 lacs (approx.) during the second phase.

2. What else do you want from prospective investors? What’s the strategy for providing the return to the investor?

Phase III, which involves major chunk of the investments, will commence only after reaching pre-set optimization
targets for Phase II. Phase III will end with industrial scale magnification of Phase II in two stages. The returns
expected after each stage is in the same order of scaling.

Team: [20%]
1. Give details of your team members, their roles, special qualifications and experience relevant to the business plan.
Amit Arya, team leader
B.Tech. + M.Tech., IIT Bombay (Electrical Engineering)
His research experience in electronic properties of material and instrumentation coupled with
his work experience with energy sector brings in domain expertise as well as maturity to the
organization.
 Gaurav R. Namdhar, team member
B. Tech, IIT Bombay (Materials Sciences)
He has research experience of more than 3 years related to carbon nanotube and process
design including his work with Science Foundation of Ireland at Trinity College Dublin. He
is one of the key contributors to the IU’s proprietary process known as CGP.

2. Describe any team gaps or openings that you would like to fill in your team.
We would want to have a team mate with a background of Finance and Marketing . That would be a
great addition to the team as that will bring better clarity in our Financial Projections and Market
Planning.