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Innovative Packaging Technology Putting you at the forefront of technology Gadiel Ross Richard Greenwood Abdul Kamara Yakira Rodriguez.

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Presentation on theme: "Innovative Packaging Technology Putting you at the forefront of technology Gadiel Ross Richard Greenwood Abdul Kamara Yakira Rodriguez."— Presentation transcript:

1 Innovative Packaging Technology Putting you at the forefront of technology Gadiel Ross Richard Greenwood Abdul Kamara Yakira Rodriguez

2 Company Profile Innovative Packaging Technology was established in 1984 by Richard Greenwood. Nicholas graduated from Harvard with a business and engineering degree. IPT is strategically headquartered in Fresno, California. IPT is a large multinational firm with a current 55% market share in the North American market.

3 Mission & Vision The mission of IPT is to produce top quality, packing machinery. The Multinational Company will offer unparalleled technical and non-technical support to our customers. In the next 5 years IPT will have increase our sales to over 25% or more of our sales revenue from overseas sales. Innovative Packaging Technology is determined to expand from North America and move to even more international markets.

4 Goals & Strategy IPT plans to increase international sales by 25% of sales. We intend to increase our total exports and increase our global market share in Eastern Europe and Asia. During the next 5 years, IPT intends to capture at least $3 billion of the global industry market share by 2012.

5 Goals & Strategy Contd. Drawing upon our core competencies we aim to draw international business by: Strengthen our R&D by 20% of Total Sales. Established and capitalize in niche markets. Develop strong export contacts and form strategic alliances with local firms. Re-Introduce our patented cutting edge technology which will establish a competitive advantage.

6 Product/Service Description IPT designs, manufactures and markets six core industrial packaging machineries for food processing, manufacturing, shipping & warehousing companies; categorized by case forming, packing, sealing, wrapping, bundling, and palletizing. IPT will offer a range of customer-centric aftermarket services geared towards suiting the needs and demands of our dedicated customers, encompassing training, servicing, and machinery upgrades. The services will include but it not limited to: –Client Core Division (CCD) facilities –Reduced Cost Parts and Machine Installation –Provide Free Software and Machine upgrades –Training of client employees to efficiently operate IPT machines –Provide contract field servicing for packaging machines –Guaranteed Warranty Coverage

7 Case Forming, Packing & Sealing (Specialty Milk & Dairy Products) Omega-D Price $200,000.00 Genesis-M Price $150,000.00 Glacial-C Price $100,000.00

8 Wrapping, Bundling & Palletizing (Specialty Shipping & Transport Goods) Alpha-C Price $250,000.00 SCIFI-SW Price $94,000.00 SHRINK-SF1000 Price $80,000.00

9 Value Proposition The ALPHA-C Corner boards are simple products made from palion solid fiber. Made by laminating recycled paperboard into a rigid right- angle shape. Corner boards provide edge protection as well as load containment, protection, stabilization and strengthening. Corner boards are the smart choice because they provide only as much protection as you actually need, offering versatility and adaptability unmatched by other packaging systems, and are cost effective. Adhesive Corner Board Patent

10 Adhesive Corner Board Palion solid fiber paper board corner & edge protection: –100% recyclable –Eco friendly Made from multi layers of paper and bonded to form an L shape.

11 North American Market IPTs US packaging market accounts for 76% of total sales. Our major customers are geographically positioned in California – San Francisco Texas - Dallas Massachusetts – Boston Illinois – Chicago IPT has a 55% market share

12 Global Expansion – India (Macro) Indias GDP growth rate in 2006 was 9.2% It is the fourth largest GDP US$4.042 trillion and is ranked the 10th largest economy in the world; and second behind China as an investment option. India has an estimated population of 1.1 billion people second most populous country in the world behind China. India has emerged as the most favored private equity destination attracting US$ 1,239.22 million worth investments in January 2007, surpassing Asian giants like China and Japan.

13 Global Positioning (Map of India)

14 Global Expansion – India (Micro) The dairy sector in India has made remarkable development in the past decade and positioned itself as one of the largest producer of milk and dairy products in the world. While the worlds milk and milk product output is expect to grow by 2.6 percent in 2007, India is expect to register up to a 4% increase. India contributes to world milk production rise from 12- 15 % & it will increase up to 30-35% (year 2020). Currently 872 companies in Packaging Industry.

15 Exporting FDI in India Exporting to Aprotech Pvt. Ltd., given exclusive rights to assemble and distribute our Omega-D and other products. This agreement will manifest over 2 years & Aprotech will be responsible for sales and promotion with a 5% royalty fee. Project sales forecast based on the rising dairy market should be at US$50 mil. This would give IPT US$2.5 mil from royalty fees. Some of the weaknesses that IPT is faced with are the unreliable cash flow within the early stages of operations.

16 Exporting FDI in India Horizontal Foreign Direct Investment in the form of a Greenfield Investment in New Dehli. Foreign direct investment in India is FREELY allowed in all sectors including the Packaging and Service Sector. Profits will go directly to our home economy in the US and develop business practices. On July 18, 2005, President George W. Bush and Indian Prime Minister Dr. Manmohan Singh announced the U.S.– India Knowledge Initiative. United States secured funding of $8 million in fiscal year 2006, with a total of $24 million pledged through 2008.

17 Global Expansion – Russia (Macro) Russia is the world's 120th freest economy and our access to the European markets. The market situation in Russia has recently become more favorable for American goods as the dollar/ruble exchange continues to decrease. Russias GDP in 2004 was at $1.5 trillion but in 2007 its GDP is expected to grow $1.2 trillion dollars nominally, that $2.3 trillion at 2007. The flow of U.S. foreign direct investment (FDI) into Russia in 2002 was $617 million, down from $709 million in 2001. U.S. FDI in Russia is concentrated largely in the banking and information sectors.

18 Global Positioning (Map of Russia)

19 Global Expansion – Russia (Micro) Russian food processing companies are seeking a wide variety of packaging machinery and equipment. Russia's packaging industry currently imports some $2 billion worth of foreign packaging materials and equipment annually. USSR packaging research and development was 20 to 25 years behind that of the West. The Russian packaging industry is experiencing an annual growth rate of approximately 8% to 10%, with all types of materials being used for packages.

20 Joint Venture FDI in Russia Operating a joint venture with The HTL company, leader of the Russian packaging machinery market with the largest market share. Extensive dealer network in Russia on successful distribution of any goods. Government's increased involvement in the private business environment. Partners save money and reduce their risks through capital and resource sharing. –Economies of scale and advantages of size. –Defensive response to blurring industry boundaries.

21 Joint Venture FDI in Russia Russian import tariffs have generally ranged from 5% - 30%. In addition, a Value-added tax (VAT) is applied to virtually all imports of 20%. The government has affected reforms setting up a foreign investment law promoting the transfer of capital, technology, and know-how. Attracting more FDI, in controlling inflation and in reducing the unemployment rate. With comparatively low levels of FDI, the competition for deals is less intense. The lack of competitive strength could hinder sales and profits.

22 Current Market Development Strategy Improve product quality (Research & Development) Make prices more competitive Improve customer- centric support (Training, Services, Upgrades) Increase quality control testing Invest in more usability testing Use higher quality materials Increase market research budget Work with retailers to increase volume and lower prices Require results- oriented training Provide Free Software and Machine upgrades Lower cost of fee-based support Institute mentoring program Aftermarket Services Improvement Plan Add support options, such as Internet

23 Profit/Loss Financial Statement IPT Financial Statements (Open Plant in New Delhi)(Open plant in Moscow) P/L200720082009201020112,012 Net Sales1,900,000,0001,950,000,0001,960,000,000 Net Sales from subsidiaries600,000,000720,000,000820,000,000910,000,0001,050,000,0001,200,000,000 Total Sales2,500,000,0002,670,000,0002,780,000,0002,870,000,0002,860,000,0003,160,000,000 Cost of Goods Sold1,999,980,0002,010,000,0002,030,000,0002,040,000,0002,060,000,0002,070,000,000 Gross Profit500,020,000660,000,000750,000,000830,000,000800,000,0001,090,000,000 Operations Expense: Promotion240,000 260,000 Sales & Administration1,500,000 1,800,0001,900,000 Payroll2,000,0002,500,0003,600,0004,000,000 Accumulated Depreciation50,000 250,000300,000 Insurance1,000,000 1,500,0001,750,000 Research and Development100,000,000 Misc.240,000380,000501,000570,000590,000600,000 Operating Expenses105,030,000105,670,000107,911,000108,780,000108,800,000108,810,000 Taxes8,402,4008,453,6008,632,8808,702,4008,704,0008,704,800 Net Profit386,587,600545,876,400633,456,120712,517,600682,496,000972,485,200

24 Operational Expenses – 5 yrs

25 Relating Sales to Profits

26 Five Year International Sales Development Plan (25% Increase) Net Sales (All Markets) JOB AIDS Exporting India Joint Venture Russia FDI India FDI Russia Aftermarket Services Focus Joint venture with The HTL company Create a buying vision that maps product/service to business needs Extensive dealer network in Russia on successful distribution of any goods $720,000,000 $820,000,000 Total International Sales SOLUTION SELLING® SALES PROCESS STEPS SALES PROCESS ACTIVITIES AND MILESTONES Generate new prospects (via referrals, networking, trade associations, conferences) Begin 2 yr Exporting Agreement to Aprotech Pvt. Ltd @ 5% Royalty rate. Evaluation plan to demonstrate to decision-maker our intention to setup. Establish Horizontal Foreign Direct Investment in the form of a Greenfield Investment in New Delhi Negotiate terms and conditions of Alliance Merge and acquire ownership percentage with the HTL company. Setup new plants and facilities in other cities in Russia Complete the work (deliver the product/service) Maintain Consumer Equipment Productivity Follow-up with the customer $910,000,000 $1,050,000,000 $1,200,000,000 Customer Reference Story Evaluate Success for FDI in India Competitive Advantage Product/Service Benefit Statement Follow-Up to Product/Service Success Implement Merger and Acquisition Product/Service Evaluation Plan Value Analysis Calculator for Product/Service Focus on Aftermarket Expertise development Rebuttals to Negotiation Roadblocks Give-Get List for Negotiation Tradeoffs Negotiation Tracker Product/Service Satisfaction Tracker Business Development Prompter Phase 1Phase 2Phase 3Phase 4Phase 5 $2,670,000,000 $2,780,000,000 $2,870,000,000 $3,010,000,000$3,160,000,000


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