BUSINESS PROPOSAL

UNISHELF

DECEMBER 2016 PTR013

UNISHELF INDIA Greater Kailash

Post Office Box #369 South Delhi,110048.

9671100130( 24hr.messages) www.unishelf.com

contact@unishelf.com

Legal Page

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by

_______________ in this business plan is confidential; therefore, reader agrees

not to disclose it without the express written permission of _______________. It

is acknowledged by reader that information to be furnished in this business plan

is in all respects confidential in nature, other than information which is in the

public domain through other means and that any disclosure or use of same by

reader, may cause serious harm or damage to _______________. Upon request,

this document is to be immediately returned to _______________.

___________________

Signature

Divyae Sherry and Sachi Nanda

19th December 2016

This is a business plan. It does not imply an offering of securities.

Table of Contents

1.0 Executive Summary

2.0 Company Summary

2.1 Start-up Summary

a. Table: Start-up

3.0 Services

4.0 Market Analysis Summary

5.0 Strategy and Implementation Summary

1. 5.1 Sales Forecast

a. Table: Sales Forecast

6.0 Management Summary

7.0 Financial Plan

1. 7.1 Start-up Funding

a. Table: Start-up Funding

2. 7.2 Projected Profit and Loss

a. Table: Profit and Loss

1.0 EXECUTIVE SUMMARY

Retail, Warehousing and Libraries are huge, maintaining them and

running them on a daily basis requires a lot of man power and

machines.

But even after the excessive use of ICT some of the things have

remained the same and continue to use unrequired human effort.

One of the things is use of paper and sticky labels on shelves to

describe about the product and show the prices and discounts.

These labels need to be changed every time whenever there are

discounts etc. Thus requiring a lot of human labor.

UniShelf is a smart shelf which uses an e-ink display to display the

information of the product kept on the shelf and other necessary

information associated with it . The shelf is connected to a

centralized database/logistics management system. It offers the

retailers, wholesalers to remotely update the content on racking

signage rapidly and proficiently, without the need of print paper

tag and docket or to send different workers to change them

physically. Information can be easily changed or edited by a click

on admins computer.

ADVANTAGES

1. Low shelf requirement

2. No botheration of changing the tags.

3. Wide viewing angle unlike LCD’S or manually written.

4. Superior outdoor readability.

5. Information can easily be changed just by a click on the

computer.

(For say , if one has to offer particular discount on any specific

product , instead of changing manually one can easily do so via

any concerned digital device.

6. Low power consumption

7. Conveys the information about the expiry dates. It really helps

the consumers to not to pick up the product and the store

manager can easily change it.

8.Compares price in real time with various prices of that

particular available on different product available in the store at

2.0 COMPANY SUMMARY

UniShelf is a privately held company .We have worked to design a

prototype system and business strategies , consulting with

numerous academic and professional contacts to assess the

feasibility and utility of our product and business model. The

product will be assembled in China and the Shelves will be

sourced from Qingdao World Link Storage Equipment Co. Ltd and

Suzhou Hongyuan Business equipment Manufacturing co Ltd in

China and the E-ink display modules will be sourced from Zhuhai

Eastsun Technology Co.Ltd.

2.1 START- UP SUMMARY

REQUIREMENT

START UP EXPENSES

Warehouse Rent $ 10,000 ( 3 years )

Office Insurance $ 5000 ( 3 years )

Research and Development $ 30,000

Furniture $ 10,000

Legal $ 10, 000

Stationary $ 1,000

Advertisement $ 10,000

Salary $ 55,000

Other $ 10,000

Total expenses $ 1,41,000

Start Up Assets Needed

Cash in Bank $ 3,00,000

Other short term assets $ 10,000

Long-term Assets $ 35000

Total Assets $3,45,000

3.0 SERVICES

The product will be assembled in China and the Shelves will be

sourced from Qingdao World Link Storage Equipment Co. Ltd and

Suzhou Hongyuan Business equipment Manufacturing co Ltd in

China and the E-ink display modules will be sourced from Zhuhai

Eastsun Technology Co.Ltd .Our business model is clear , our value

proposition is to provide an affordable and digital smart shelves

to our potential customers. We will be dealing via E-Commerce

and will be having continental and country heads who will be

taking our business forward and would interact with our potential

customers . Products will directly be shipped from China , from

where we will be outsourcing our product and also we do have

our warehouse where we will be storing the product. The size of

the product is not limited to some specific sizes, instead we will

be customizing the sizes according to the needs of our customers.

We intend to capture globally. We will generate income from APIs

too and will be sold to software companies.

3.0 MARKET ANALYSIS SUMMARY

Its all too easy to dismiss the optimistic fantasies of yesterday:

flying cars and robot servants may have filled the pages of popular

mechanics in the 1950’s , but today we are better grounded in

reality , pinning our hopes on more reasonable future based on

technology we have actually developed. We see the opportunities

to revolutionize the existing technology.

1.Superstores :

Out of top leading 2,50,000 stores in the world, 35 percent of

them are superstores or huge grocery store food retailers, this is

according to 2015 global power of retailing report from Deloitte

touch and store magazine. We will be targeting these huge stores

because of the fact that these are the highest revenue earning

companies and can easily adopt our product as it’s one time

investment and can further help them to earn more profits and

popularity and can employ their surplus staff in some other

productive work.

2. Pharmaceutical Companies & Storage Units:

Novartis,Roche,Merck and Co ,Johnson and Johnson, cipla are the

leading pharma companies with extremely huge warehouses. Our

targeted market in this initially comprises of top 500 pharma

brands with ultimate revenues and who we think are in dire need

to switch on to this high tech product and can do the labeling

tiresome task with ease.

3.HUGE LIBRARIES AND RETAILERS

Our product is aimed at the customers whose store size is

more than 4000 sq feet as small stores usually don’t need

such heavy infrastructure .

Target customers starts from mid –large stores who want

extreme efficiency and want to lower the human resource

required for such jobs .

We will apparently focus on more on branded retail stores

like 7 eleven etc as the orders from these chains will be in

bulk and recurring . this will also prompt its competing

companies to adopt this technology which will further profit

us.

STRATEGY AND IMPLEMENTATION SUMMARY

We will price our product a higher than what a normal shelf costs

but at a competitive price as bulk orders will bring in economies

of scale, more the volume more will be the profit.

Depending upon the number of units order and the goodwill of

the clients , we will offer free installation and cabling for the

same.

Sponsored articles in business magazines will surely help us gain

popularity amongst various industries and would build our

goodwill too.

Advertisements in various journals and newspaper will help us

capture not so famous retailers who would probably like our

product.

One to one interaction with management executives of targeted

companies would help us to earn the trust of those companies

which will surely leave a good impact of us and increase our sales.

Stall in conventions relating to academics(libraries ) and

warehousing.

Marketing Strategy

Promotion Strategies:

Sponsored articles in Business Magazines

Advertisement in Business Journals and Newspapers

One 2 One Interactions with management executives of

targeted companies

Stalls in conventions related to retailing, academics

(libraries) and warehousing.

Online Advertisements on Google AdSense and other b2b

websites.

Free Samples will be given to companies so as to test our

product

Hackathons will be held in colleges so as to take this product

to the maximum potential by using its APIs.

Distribution Strategy: We will sell this product in all countries by

online channels shipping it directly from China but will also have

retail partners in developing markets like India where there is

huge population base and in Developed markets like UK,USA etc.

5.1 Sales Forecast

SALES INITIATE

First Month Sales - Cost of goods Retail Price Discount Wholesale

Warehouse companies (750 units) $ 42 $ 55 $ 0 -

Mega Super stores, (750 units) $ 42 $ 55 $ 0 -

Retailers, Storage Units (250) $ 42 $ 55 $5 $ 50

We anticipate that after an initial period of 3 months, our sales would probably increase.

1.REVENUE FROM OPERATIONS

YEAR 1 – 32000 UNITS SOLD

1. 26000 * $ 55 =$ 14,30,000

2. 6000 * $ 50 = $3, 00,000

$ 17, 30,000

YEAR 2. 43000 UNITS SOLD

1. 35000 * $ 55 = $ 19,25,000

2. 8000 * $ 50 = $ 4,O0,000

$ 23,25,000

YEAR 3 - 54000 UNITS SOLD

1. 44000 * $ 55 = $ 24,20,000

2. 10,000 * 50 = $ 5,00,000

$ 29,20,000

6.1 Management Summary

• We will be having a small team as we don’t want to spend

excessively on human resource

• We will have 3 departments in place i.e Research & Development,

Sales, and Finance.

• We will be employing one HR Manager who will take care of hiring

talent.

• We will be hiring freelancers to develop our product and will have a

department head for the same.

• The sales and distribution team will be hired from their own home

countries i.e if a sales person or head resides in Dubai he would be

asked to stay there itself.

• We will be giving out fees to developers(freelancers) depending on

the work performed.

• Employee benefit expenses will be paid to the upper and middle

level management and to the permanent staff.

• Sales and Distribution Teams will be based out in their home

countries (will be asked to work from home) and be given a base

salary and bonus on the contracts they secure from the clients.

Designation Number Cost To Company (CTC) (pa)

Developers 4 12,000 USD

HR Manager 1 3,500 USD

Country/Continent Head (Sales)

5 20,000 USD

CEO 1 10,500 USD

Procurement Manager 1 3,000 USD

CTO 1 4,000 USD

Office Staff 2 2,000 USD

Total 15 55,000 USD

7.0 Financial Plan

7.1 Startup Funding

SOURCES OF FUND

AMOUNT

ANGLE INVESTORS

VENTURE CAPITALIST

$1,00,000

$2,00,000

We feel that the best way to source our funds is from angel

investors and venture capitalists. Our business has a potential

for a solid return , a business structured for investment, a solid

business plan and a viable exit strategy.

Our capitalist and investors have 20 percent in total stake in

the equity.

Angel investors - 8 %

Venture Capitalist – 12%

7.2 Profit and Loss Statement

INCOME STATEMENT

PARTICULARS AMOUNT ( YEAR 1)

AMOUNT (YEAR2)

AMOUNT (YEAR 3)

REVENUE FROM OPERATIONS

INCOME FROM OTHER

OPERATION

$ 17,30,000

$1,00,000

$ 23,25,000

$1,50,000

$ 29,20,000

$1,75,000

TOTAL REVENUE $18,30,000 $24,75,000 $30,95,000

EXPENSES

PURCHASES

$ 13,44,000 $ 18,06,000 $ 22,68,000

LEGAL $10,000 - -

STATIONARY $1000 $1000 $1000

ENGINEERING , R AND D

$ 30,000 $ 30,000 $50,000

SALARY OTHER

FURNITURE WAREHOUSE RENT OFFICE INSURANCE

$55,000 $10,000 $10,000 $3333 $1666

$55,000 $10000

$3333 $1666

$55,000 $10000

$3333 $1666

TOTAL EXPENSES $14,65,000 $19,06,999 $23,88,999

PROFIT BEFORE TAX $3,65,000 $5,68,001 $7,06,001

TAX @ 30 % $109500 $170400 $2,11,800

PROFIT AFTER TAX $2,55,000 $3,97,601 $494201

Balancesheet

Balance Sheet for UniShelf

As on 31st March 2017,2018,2019

Particulars Note No. Year 1

I Equity & Liabilities 1 Shareholders Funds

a) Share Capital $3,00,000

b) Reserves & Surplus $2,55,000

c) Money Received against Share Warrants -

2 Share Application Money pending Allotment -

3 Non-Current Liabilities

a) Long Term Borrowings -

b) Deferred Tax Liability -

c) Other long term liabilities -

d) Long-term provisions -

4 Current Liabilities

a) Short-Term Borrowings $

b) Trade payables -

c) Other current liabilities -

d) Short-term provisions -

Total $5,55,000

II Assets 1 Non-Current Assets

a) Fixed Assets $45000

i)Tangible Assets -

ii)Intangible Assets* $1,90,000

iii) Capital Work-in-progress -

iv) Intangible Assets under Development -

b) Non-Current Investments -

c) Deferred Tax Assets -

d) Long-term loans & advances -

e) Other Non-Current Assets -

2 Current Assets

a) Current Investments -

b) Inventories $

c) Trade Receivables

d) Cash & Cash Equivalents

$300,000

e) Short Term Loans & Advances

f) Other Current Assets

g) prepaid insurance and rent $10,000

$10,000 Total $5,55,000