Recall the face of the poorest and the weakest man whom you may have seen, and ask yourself, if the step you contemplate is going to be of any use to him. -Mahatma Gandhi
Soy Laabh Venture Team Kiju Jung Judy Lee Sindhura Mekala Adri Platt William Smith Hirotoki Takemasa Roselyne Yao Monday May 4, 2009
Agenda Protein-Energy Malnutrition in India Our solution: SoyChoyce Our Competitive Advantage Your Investment Opportunity in Soy Laabh SoyChoyce Implementation Plan Summary
Meet Family Tamilselvi Tamil Nadu, India FATHER Breadwinner MOTHER Breadmaker Manual Labor Subsistence Agriculture Main source of income Potential profile of 4.6 million Low Income (< Rs. 5000 per month) Low Literacy High Probability for households Protein-Energy Malnutrition Household care Subsistence Agriculture Minimal income generation
Protein-Energy Malnutrition The Alarming Situation in India One in every three malnourished children in the world lives in India. UNICEF India About 50 per cent of all childhood deaths are attributed to malnutrition. UNICEF India 44 per cent of children under 5 years old suffer from malnutrition in India. Word Bank 2007
Protein-Energy Malnutrition A Preventable Health Care Issue Protein-Energy Malnutrition Growth Failure / Loss of Muscle Mass Generalized swelling Decreased immune system Permanent physical and mental disabilities Negative impact on health, education, productivity
Protein-Energy Malnutrition Nutritional Power of Soy Proteins (in grams) per cup 80 70 60 50 40 30 20 10 0 CHICKEN vs. DEFATTED SOY FLOUR Protein vs. Calorie Content 0 100 200 300 400 500 600 700 800 900 High calorie / protein content for SOY NUTS SOY MILK vs. WHOLE MILK Calorie Count per cup Chicken Breast Eggs Chickpeas Soynuts Tofu Soymilk Whole milk Defatted Soy Flour
Our Solution: SoyChoyce
Our Solution: SoyChoyce Container Product Concept
Our Solution: SoyChoyce Benefits of Defatted Soy Flour Affordable Made from waste material of soy oil production Easy to use Dissolves in water Long shelf life Mild taste Healthy 50% protein High in energy Safe if stored properly
Why SoyChoyce? Affordability vs. Protein Content Affordability Rs. 50/kg; 50% Rs. 54/kg; 50% Rs. 320/kg; 18% Rs. 2500/kg; 90% Protein content
Why SoyChoyce? Affordability vs. Ease of Use/Reuse Affordability Rs. 50/kg; 50% Rs. 30/kg; 50% Rs. 320/kg; 18% Rs. 2500/kg; 90% Ease of Use/Reuse
Why Invest in Soy Laabh? Mission Statement Harvest the power of soybeans People Profit Planet
Why Invest in Soy Laabh? Management Team Kiju Jung Masters in Communications Judy Lee BFA Industrial Design and Art Education Sindhura Mekala MS Industrial Engineering, Master of Management Studies Adri Platt MBA Marketing, BS Engineering William Smith MBA Finance, BS Engineering Hirotoki Takemasa MBA Marketing, MS Plant Biology Roselyne Yao MBA Finance and Marketing, BSBA Finance and International Management
Why Invest in Soy Laabh? Partnership with Soybean Research Leader National leader in soybean research Promotes soybean research, education and outreach in the areas of production, nutrition and international development Diverse association of research programs
Why invest in Soy Laabh? Profit Opportunity INR 800,000 INR 700,000 INR 600,000 INR 500,000 INR 400,000 INR 300,000 Revenues After-tax income INR 200,000 INR 100,000 INR 0 Year 1 Year 2 Year 3 Year 4 Year 5 (INR 100,000) Revenue and Income graphs for growth rate of 15% (Price/ 500g= Rs 27)
SoyChoyce Implementation Plan Distribution Process
SoyChoyce Implementation Plan Educational Component
SoyChoyce Implementation Plan Educational Pamphlet
SoyChoyce Implementation Plan Triple Bottom Line Commitment People Profit Planet
SoyChoyce Implementation Plan Commitment to Planet Reducing Carbon Footprint Sourcing Locally Eliminating middlemen Resource Conservation Durable and reusable container Use recycled materials Sustainable Agriculture Flour suppliers committed to sustainable soybean production
SoyChoyce Implementation Plan Commitment to People Market Opportunity The family household living with Rs. 5000 or less More specifically: The Mother-child dynamic Short-Term Tamil Nadu Approx. 18 Million Long-Term India Approx. 309 Million
SoyChoyce Implementation Plan Potential Launch Timeline
SoyChoyce Implementation Plan Potential Launch Timeline Year 0 Setup Central Office, Advertising, Education & Training Establish Supply, Manufacturing & Distribution Networks. Finalize Prototype Years 1-5 Year 1: Projected Units Sold 15,000 Year 2 Projected Units Sold 17,000 Year 3: Projected Units Sold 20,000 Year 4: Projected Units Sold 23,000 Year 5: Projected Units Sold 26,000
Summary Large Scale Preventable Issue Our Solution Your Opportunity Protein-Energy Malnutrition Potential of 4.6 million households in Tamil Nadu Positive Financial Social Environmental Returns
Thank you! We would love to hear any comments and questions. Smile with SoyChoyce. Thank You ANY QUESTIONS?
Financial Forecast Benchmarking Analysis Nutritional Power of Soy Scale of Potential Impact APPENDIX
Financial Forecast Financial Forecast Assumptions and Calculations : Each packet of SoyChoyce is 500gms, which can be used over a period of 1 week by a family of 4. Assumed 14 refills on an average per household in 1 year. Year 1-> 10 villages, 100 households each Total units that can sold in Year 1= 15*10*100= 15000 Cost: 15 INR/ 500 Gms of SoyChoyce 15 INR/ Bottle 1 INR/ Polythene bag Tax rate= 33% Personnel: Salary per year per person= 36,000 INR (Minimum wage in India is Rs 80 per day on average. But in the food processing industry, it is Rs 44) Appendix
Financial Forecast Income Statement (YOY Growth rate= 15%) Category Year 1 Year 2 Year 3 Year 4 Year 5 Revenues 405,000 465,750 535,613 615,954 708,348 Soy flour 225,000 258,750 297,563 342,197 393,526 Bottle 7,500 8,625 9,919 11,407 13,118 Polythene packets 14,500 16,675 19,176 22,053 25,361 Total Cost of materials 247,000 284,050 326,658 375,656 432,005 Rent 100,000 100,000 100,000 100,000 100,000 Education & Marketing 30,000 10,000 10,500 11,025 11,576 Personnel 72,000 79,200 87,120 91,476 96,050 Commission for SHGs 15,000 16,500 18,150 19,965 21,962 EBIT (59,000) (24,000) (6,815) 17,832 46,755 Appendix Tax payable (19,470) (7,920) (2,249) 5,885 15,429
Benchmarking Analysis Product Name Design Type Product Price Key Tagline Complan (H.J. Heinz) Health Drink Mix Paperboard box 319.00 INR - 1 Kilograms 23 vital nutrients 100 per cent protein content Sri Matha (Sri Matha Soy Food Products) Soybean Flour Plastic packet 25.00 INR - 500 Grams "the soybean flour is defatted, 100 percent vegetarian and contains 50 percent of protein." Horlicks (GlaxoSmithKline) Malt Drink Laminated box 100.00 INR - 200 Grams; 190.00 INR - 500 Grams "It is rich in protein and is forfeited with DHA for brain development with an essential Omega 3 fatty acid." Appendix
Benchmarking Analysis Product Name Protinex (Wockhardt Ltd.) Diabetic Protein Supplement Soylife (Coolex Industries Ltd.) Isolated Soy Protein Powder Design Type Product Price Key Tagline Tin / Metal with plastic lid Plastic container 140.00 INR - 200 Grams 250.00 INR - 100 Grams "High Fiber; High Minerals; High Vitamins; No Saturated Fat; No Sugar; Vegetarian" "High Protein; Vegetarian" "It is reportedly ideal for diabetes, obesity, sports people, growing children, pregnant women, lactating mothers, menopause women and old aged people. " Appendix
Why Investing in SoyChoyce? Nutritional Power of Soy PROTEIN vs CALORIE CONTENT (PER CUP) Food Item Calories Per Cup Protein (G) Per Cup Eggs 347 31 Chicken Meat 231 43 Mature soybeans (yellow), cooked 298 28.6 Soy flour, defatted 328 47.2 Soy nuts 776 68 Appendix
SoyChoyce Implementation Plan Commitment to People Breadth of potential impact As of 2007, 44% of children under 5 years old were suffering from malnutrition in India. Educate Provide 363 Million (14 & under in India) 18 Million New every year (Population Growth 1.55%) Appendix