Business Plan

1.0 EXECUTIVE SUMMARY 1.1 COMPANY World Press Pvt. LTD. is a service based company dealing as Marketing Consultants and Rights Agent since 1978. Our initial plan is to setup a state of the art printing press to reprint foreign textbooks & general books with managed rights under the label of World Press Publications. Our goals include establishing Pakistan as one of the major player in the Book Publishing Industry and to attain this goal we have combined in collaboration with the leading names of the industry in Pakistan such as Paramount Books, Ferozsons Pvt. LTD. Oxford University Press Pakistan and Liberty Books. Our other goal is to bring Pakistani people closer to books and for this we have sacrificed personal benefits to achieve special prices for Pakistan and also helped organize the annual Lahore International Book Fair. 1.2 SERVICES Our main services include facilitating trade between foreign book, journal publishers and Pakistani book-sellers; arranging exclusive deals and special prices, arranging reprinting rights for the Market territory of Pakistan & Middle East, against an agreed royalty. 1.3 MARKET ANALYSIS The Pakistani book selling & publishing industry doesnt contribute anything mentionable to the GDP with annual sales hardly touching the Rs. 15 billion mark. The two key things required to induce a ten fold increase in the sales volume include 1.) Government subsidies to encourage investment in the industry. 2.) Quality books with affordable price. The government recently announced plans to subsidize the industry with measures which include a.) Duty free import of printing paper, inks, printing machinery and related equipment. b.) 20% discounted rates of electricity for printing presses and type-setting houses. c.) Income tax exemption till 2020. The buyer trends show that people are ready to spend on books if they get quality books at affordable rates. The testament to this is the sales of annual book fairs of Lahore and Karachi (where huge discounts are offered) which result in sales worth Rs. 50,000,000 per day. 1.4 STRATEGY & IMPLEMENTATION To achieve our business goals, we will create a high-tech, precision printing facility and will implement highly efficient operations processes. We plan to promote World Press Publications with an aggressive, targeted marketing campaign. This will include a media campaign, print and online advertising and a targeted direct-mail campaign. In addition, we will focus heavily on establishing our presence within the industry at relevant trade shows. Plus we plan to organize discount fairs in schools and colleges across Pakistan. 1.5 MANAGEMENT Our leadership team currently consists of Chief Executive Naeem Hussain, President Nadeem Malik, and Vice President Saleem Ajaz. Additional key leaders will include directors of finance, marketing and sales, human resources, information technology and operations. While these positions remain unfilled at this time, we do have several extremely qualified candidates interested in joining with us in this new venture. A sum of Rs. 10,500,000 has been allocated for salaries of office staff. While 50 machine operators will be hired at Rs. 7500 a month. 1.6 FINANCIAL PLAN

Our Company will earn revenue from the sale of reprinted books and offering state of the art printing facilities to other interested parties. We will achieve break-even with sales of Rs. 1,030,000,000. We expect to reach profitability by the middle of Year 4. 1.7 SOURCES & USE OF FUNDS World Press Publications requires Rs. 600,000,000 to launch. Co-owners Naeem Hussain, Saleem Ajaz and Nadeem Malik have each invested Rs. 100,000,000 into the company. World Bank has agreed to finance the project with a loan at 5 %( to be paid back in 15 years) covering up the remaining Rs. 300,000,000. The allocation of stakes will be as follows: Saleem Ajaz 33% Naeem Hussain 33% Nadeem Malik 33% Save Earth Project 1% The start-up funds will be used to cover the facility, build-out costs, equipment, raw materials, software and initial operating costs including salaries, taxes, and utilities. 2.0 COMPANY 2.1 COMPANY & INDUSTRY World Press Publications is located in Sunder Industrial Estate Lahore, Pakistan. Our company reprints foreign textbooks with republication rights in addition to this we also print local books in order to promote the local industry. World Press Publications, Inc. is a registered member of Pakistan Publishers & Book-Sellers Association (PPBA) as a publisher, printer and a book seller under the membership no# 2147-67889-KR. 2.2 LEGAL ENTITY & OWNERSHIP World Press Publications is a product based wing of World Press Pvt. LTD. The company's principal owners are Saleem Ajaz (33%), Naeem Hussain (33%), and Nadeem Malik (33%) shares of ownership in the company. In addition to this, Save Earth Project is a beneficiary of 1% of the profits as World Press Publications is well aware of the threat Global Warming poses to Earth and this is a small contribution to fight this growing threat. 2.3 FACILITIES Our company has recently acquired a purpose built well-constructed building in Sunder Industrial Estate, Lahore to serve as the printing press. The land in Sunder Industrial Estate was donated by UNESCO whereas the cost of construction is Rs. 13,500,000. Negotiations are underway to acquire another building nearby for storage of finished products and our Administrative offices and in the final phase of completion located on Mall Road opposite to Ferozons. It is being completed at a cost of Rs.120,000,000. We are presently operating out of temporary administrative offices at the Siddique Trade Center. It has been rented at Rs. 675,000 for one year. As the business grows, we intend to add binding and packing facilities at our printing facility. 2.4 KEY ASSETS World Press Pvt. LTD. holds a patent for its revolutionary Top Down Center (TDC) binding. The TDC is a big revenue earner and last year alone generated revenues from royalty worth Rs. 35,000,000. This allows us to concentrate on our new products and make them more profitable. The TDC is a registered patent. In addition to this our fix assets include machinery and equipment worth Rs. 100 million and a press in Sunder Estate plus an office on Mall Road.

3.0 PRODUCTS/SERVICES 3.1 DESCRIPTION World Press Pvt. LTD. will be reprinting books; both paperback and hard back editions will be prepared at the facility. The type-setting will be the first process to be carries out. After the composition is completed by the typesetters, the plates will be prepared and fitted into the printing machines. After getting the printing machines running and adding ink, the paper will be added to complete the printing process. The paper will then be taken to the cutters and will be reshaped to the specified size. Finally the loose papers will be taken for the binding process; after the binding is complete the books will be shrink-wrapped and stored. 3.2 COMPETITION Our major local competitors are Jehangir Book Depot PVT Ltd who is involved in reprinting of textbooks such as Barrons SAT among others. While Pearsons India, Tata Mcgrawhill, John Wiley & Sons and Elsevier (all India based) are major competitors who have their textbooks adapted in all major institutions due to reduced prices after local reprint. 3.3 COMPETITIVE ADVANTAGE/BARRIERS TO ENTRY By relying on our technology and an activity-based costing system, rather than a time-based system, we will be able to maintain competitive prices and sustain high profitability. Our technology and systematic efficiencies will allow us to have advantages in cost, speed and design capability. Ultimately, these advantages will quickly come to define World Press Pvt. LTD. as an industry leader. Our state of the art printing machines and top down centre (TDC) binding technology gives us a significant advantage over our competitors, and our patent prevents others from being able to replicate the services we offer. 3.4 DEVELOPMENT As our company grows, we plan to expand our facility and create an automated machine controlled printing/binding press. At that point, we will be able to control all operations in-house with the help of a super computer and even mass production of the finished products. In addition, we will stay atop technology trends and upgrade equipment and processes as needed and can be afforded. We will also continue to research and pursue shares of existing markets such as magazine/gazette printing, directory printing and other related items. 4.0 MARKET ANALYSIS 4.1 MARKET SIZE The Pakistani publishing sector includes more than 300,000 companies with combined annual sales of about Rs. 15 billion. Furthermore there are approximately 280 presses with combined annual sales of more than Rs.4 billion. To capture a portion of those sales, World Press Pvt. LTD. will utilize a targeted industry approach to pursue specific, definable, market segments. 4.2 TARGET CUSTOMER After extensive research, we decided to initially pursue market segments in the business management and medical industries. These are two very distinct markets with very different needs. While the business management market

segment is on a boom and is constantly growing providing incentive to invest, the medical industry has largely been stagnant but the advent of private medical colleges has initiated a growth which is an encouraging sign.

4.3 TRENDS While the contribution of presses to the Rs. 15 billion annual turnovers is Rs. 4 billion about 70% of these presses are wither newspaper/magazine presses, General book presses or low level textbook printers. Not even a single press in involved in the printing of Textbooks which are demanded at undergraduate, graduate or postgraduate level. This gives us the edge of not facing any major local competition other than Jehangir Book Depot. 4.4 SWOT ANALYSIS Strengths Potential for global customer base Production expertise Understanding of emerging technologies Understanding of target markets Competitive product pricing Exceptional quality and customer service Implementation of cost saving processes State of the art equipment No Financing problem Weaknesses New staff Fresh Concept Strong regional competition Opportunities New products & processes Bringing new technology into the industry Developing a new reputation Hiring new talent New innovations and applications of our technology Exploring a new segment of market No real local competitor Threats Impact of new taxes Technologies developed by competitors Challenges in building a talented staff Retaining key staff members Strong regional competition Traditional Anti Pakistan behavior of Indians Market demand fluctuations

5.0 STRATEGY & IMPLEMENTATION 5.1 PHILOSOPHY World Press Pvt. LTD.s business philosophy is to make the needs of our customers our main priority. It is our mission to provide our customers with fast turnaround, exceptional quality, unparalleled customer service and competitive pricing. With the introduction of our patented TDC binding and the unveiling of our modern design and manufacturing facility, we will position World Press Pvt. LTD. as a superbly innovative company and a future industry leader. To achieve this position, we will implement our company's plan to create a state-of-the-art printing press and invest in the most accurate precision machinery available. We will implement the most comprehensive design software and set the highest standards of operational systems and quality control. 5.2 INTERNET STRATEGY Our plan is to position World Press Pvt. LTD. as a technology-driven innovative company within the moldmanufacturing sector of the publishing industry. To do this, we are putting forth a great amount of time and resources into developing a premiere Web site. We are working with a design firm and have secured a domain name WorldPress.com. We have already initiated the process of integrating our sale outlet into the site. Our site will also include a simple online form to complete for custom quotes as well as a generic form to submit questions and comments. Order will also be accepted through credit cards for new customers and existing customers will be provided with a secured Login and Password enabling them to see a review copy online and then place orders on credit. Our vision is to create a Web site that will become an integral part of our marketing, sales and daily operations. An initial sum of Rs.150,000 has been invested for this purpose and after reviewing its efficiency future investment decisions will be made. 5.3 MARKETING STRATEGY World Press Pvt. LTD. recognizes the critical importance of marketing. We will require a properly designed and executed marketing plan to ensure market penetration and business success. Until we hire an in-house sales and marketing team, we will work with a marketing and public relations firm. Once a sales and marketing staff are in place, we will reassess the need for an outside firm. In addition to conveying to our potential customers the fast turnaround, exceptional quality, unparalleled customer service and competitive pricing offered by World Press Pvt. LTD., we will also position our company as futureminded and a leader in the integration of innovative technology into the printing process. Our marketing plan will include an initial publicity campaign that introduces our company and patented TDC binding technology. Further, we will launch a comprehensive advertising campaign in business administration and medical devise trade publications and related Web sites. The publicity campaign will be closely followed by a direct-mail campaign to targeted customers. For this purpose we have allocated Rs. 150,000 per annum for the first five years. The other main component of our marketing plan will be to attend trade shows which will require booth construction and maintenance, marketing materials such as brochures, and promotional items such as pens with our logo. For this purpose we have allocated Rs. 250,000/annum to be reviewed after every year. We also plan to organize fairs and distribute discount coupons to make our products popular amongst the youth. We will also reach out to local high schools and colleges to offer internships and promote careers in manufacturing. 5.4 SALES STRATEGY

World Press Pvt. LTD. will build a sales team focused on securing new business on permanent basis. Under the direction of executive management, we will employ an outside sales staff as well as an inside sales staff, which will be cross-trained to handle general customer service calls. The outside sales staff will focus primarily on trade show attendance, comprehensive follow up, relationship building, closing deals, and securing referrals. 5.5 OPERATIONS The facility after it becomes fully operational will stock the following machinery and will be operated by the 300 workers at Sunder Industrial Estate. Machines Viper, SLA 7000 & SLA 5000 (printers) Eden260, Eden333 & Eden500V(binders) Vantage, Titan & Maxum(cutters) RTV Tooling(ink-mixer) Software SolidWorks The cost incurred on this machinery will be Rs. 100,000,000. By utilizing the latest precision machinery and software and superior operational and quality control processes such as JIT technique for raw materials World Press Pvt. LTD. will control costs while ensuring quality. Operationally, our strengths lie in our knowledge and expertise within the printing industry. We know what fixed assets we require and what regulations we must adhere to. However, while we cannot know for certain the quality of our managerial team at this point, we expect to hire and implement a top notch team. As previously mentioned we have several promising prospects and will, of course, strive to recruit top talent. 5.6 GOALS The following is a list of business goals and milestones we wish to accomplish within the next five years. Purchase machinery, equipment and supplies. Hire skilled employees to complete our team. Set up Sunder Estate facility and open for business. Successfully penetrate targeted markets. Secure contracts to achieve projected sales goals. Breaking even by end of year three. Become a profitable company. Establish a solid reputation as an industry leader. In three years, we hope to have established our company in the community and within our industry. 6.0 MANAGEMENT ORGANIZATIONAL STRUCTURE 6.1 ORGANIZATIONAL STRUCTURE World Press Pvt. LTD understands the importance of a loyal and enthusiastic team to reduce turnover and increase productivity. Our company's management philosophy will encourage responsibility and mutual respect. While we will present a strong decisive management team, we will also foster an atmosphere of genuine employee appreciation and open communication. 6.2 LEADERSHIP

Our company will be managed and run by our executive staff including Chief Executive Officer Naeem Hussain, President Nadeem Malik, and Vice President Saleem Ajaz, as well as our Board of Directors. Our management staff of directors and supervisors will oversee daily operations. However, as a small manufacturing facility starting out, the CEO, President and VP will be responsible for the majority of purchasing, hiring, training, quality control, and additional day-to-day duties. Additional key leaders will include directors of finance, sales, human resources, information technology and operations. While these positions remain unfilled at this time, we do have several extremely qualified candidates interested in joining with us in this new venture. As we start our reprinting business, we will implement a plan to hire management and production staff first and fill in with mid-level management and administrative staff as our budget and needs change.