1. Argonne National Lab Presentation 3
Yong Ding
Nuttavutt Intarode
Ibrahim Iskin
Thien Tran
06/12/2009

2. Outline Company Background Gap Review and Solutions Market Overview
Target Market
Cost of Production
Financial Analysis
Potential Applications
License Negotiation
Commercialization Plan worksheet
Project Team Formation
Product Development Roadmap
Work Breakdown Structure
Gantt Chart

3. Company Background Main Products Siam Cement Group SCG Cement
Mortar
Concrete
SCG Paper
SCG Chemical
SCG Investment
Siam Cement Group
SCG Building Material
SCG Distribution
SCG
Cement

4. Gap Review
Gaps
Technology
Lack of study and application new technologies with conventional building materials.
Need high efficient , low skill-needed, strong enough and providing comfortable indoor environment’s building solution at optimized cost.
Organization
Lack of knowledge and experience in Grancrete technologies.
Lack of expertise people in the Grancrete development and application.
Lack of special equipment and machines for manufacturing.
Competitive cost and high margin.
Personal
Require safety standard for application.
Efficiency of commercialized product
Reasonable price & Value to money
Awareness of environmental conservation in society
Get Grancrete technology license from Argonne National Laboratory
Promised technology, no R&D risk
A differentiated product
Provide a low cost housing solution for rural area
Currently it is a niche market, expect growing rapidly
Send a team to Argonne National Laboratory for learning the production process and application process
Guaranty gaining the knowledge and experience in Grancrete technology
Speed the commercialization
Purchase the special equipments and machines for manufacturing
Provide solution to user
Purchase equipments for application, and sale or rent to builders
Provide training to builders for efficiently applying the Crancrete material in different type building
Charge premiums, but keep a reasonable price comparing to its value
Balance the competitive cost and high margin
Collaborate with Government agency for material and building standard
Readiness for large scale application
Eliminate the public safety concern
Partnerships with nonprofit environmentalist organization and government agency to introduce the Grancrete building solution to rural area for green building project
Train the farmers to build the Grancrete house by themselves, reduce the cost
Educate potential customers in awareness of the new building solution’s benefit and cost (green material, no polution, low engergy cosumption to keep house cool in summer and warm in winter, long house life (50years?), easy to build, low cost, easy clean and so on)
Partnerships with local bank to provide small loans for farmers to build farmer house using Crancrete.
Create demand
Increase community quality

5. Gap solutions I
Get Grancrete technology license from Argonne National Laboratory
Promised technology, no R&D risk
A differentiated product
Provide a low cost housing solution for rural area
Currently it is a niche market, expect growing rapidly
Send a team to Argonne National Laboratory for learning the production process and application process
Guaranty gaining the knowledge and experience in Grancrete technology
Speed the commercialization
Purchase the special equipments and machines for manufacturing
Speed the commercialization and reduce risk
Get Grancrete technology license from Argonne National Laboratory
Promised technology, no R&D risk
A differentiated product
Provide a low cost housing solution for rural area
Currently it is a niche market, expect growing rapidly
Send a team to Argonne National Laboratory for learning the production process and application process
Guaranty gaining the knowledge and experience in Grancrete technology
Speed the commercialization
Purchase the special equipments and machines for manufacturing
Provide solution to user
Purchase equipments for application, and sale or rent to builders
Provide training to builders for efficiently applying the Crancrete material in different type building
Charge premiums, but keep a reasonable price comparing to its value
Balance the competitive cost and high margin
Collaborate with Government agency for material and building standard
Readiness for large scale application
Eliminate the public safety concern
Partnerships with nonprofit environmentalist organization and government agency to introduce the Grancrete building solution to rural area for green building project
Train the farmers to build the Grancrete house by themselves, reduce the cost
Educate potential customers in awareness of the new building solution’s benefit and cost (green material, no polution, low engergy cosumption to keep house cool in summer and warm in winter, long house life (50years?), easy to build, low cost, easy clean and so on)
Partnerships with local bank to provide small loans for farmers to build farmer house using Crancrete.
Create demand
Increase community quality

6. Gap solutions II Provide solution to user
Purchase equipments for application, and sale or rent to builders
Provide training to builders for efficiently applying the Crancrete material in different type building
Charge premiums, but keep a reasonable price comparing to its value
Balance the competitive cost and high margin
Collaborate with Government agency for material and building standard
Readiness for large scale application
Eliminate the public safety concern
Educate potential customers in awareness of the new building solution’s benefit and cost (green material, no polution, low engergy cosumption to keep house cool in summer and warm in winter, long house life (50years?), easy to build, low cost, easy clean and so on)

7. Gap solutions III
Partnerships with US and local nonprofit environmentalist organization and government agency to introduce the Grancrete building solution to rural area for green building project
Convince US government to license Grancrete technology to developing countries for affordable and green building project
Train the farmers to build the Grancrete house by themselves, reduce the cost
Educate potential customers in awareness of the new building solution’s benefit and cost
Partnerships with local bank to provide small loans for farmers to build farmer house using Crancrete.
Create demand
Increase community quality

8. Market Overview
UN estimates new 740 million homes are needed in developing countries. That requires 100,000 new homes a day in 20 years (1).
Half of them live in areas susceptible to earthquakes, floods, and hurricanes.
In Asia alone, about 1/3 of population. i.e. 1 billion people, live in rural areas that needs better shelters.
(1)

9. Target Market Tons 15000 12000 3. Special wall-floor works 4000
2. Repairing works
3000
2000
1. Knock-down house
2010
2011
2012
2019
2020

10. Investment in new equipment: $18000 Raw materials: 10$/unit
Cost of Production
Investment in new equipment: $18000
Raw materials: $/unit
Labor, Marketing & admin: $28000/year
Patent royalty fee:
Upfront $10000
Running 2%/sales

11. Financial Analysis Ibrahim Sales ($) Production (ton)
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Sales ($)
Production (ton)
2000
3000
4000
5000
7000
9000
11000
12000
13000
14000
15000
Production (bags)
88000
132000
176000
220000
308000
396000
484000
528000
572000
616000
660000
Unit Price ($/bag) 20 21 22 23 24
Number of houses built
1000
1500
2500
3500
4500
5500
6000
6500
7500
Costs
971200
Upfront Investment
18000
Cost of materials
880000
Labor, Admin, Marketing (increased at 10%/year)
28000
30800
33880
37268
Licensing fee
upfront
10000
running
35200
52800
73920
92400
135520
174240
212960
242880
263120
295680
316800
Net profit
788800
NPV
(discount rate 15%)
$18,039,745
Ibrahim

12. Potential Applications
1. Non-Shrinkage floor
Non-shrinkage cement
2. High Strength floor
4. Industry floor
High Strength cement
Ibrahim
3. Repairing surface road
Rapid fast setting cement
5. Rapid repairing wall-floor

13. License Negotiation
Commercialization Plan worksheet :
Required by Argonne Laboratory from all its prospective licensees before licensing its intellectual property.
Enables the Laboratory and the prospective licensee to determine and characterize the business fit between their interests.
Provides the Lab input on its calculation of value of the intellectual property to both Parties.

14. Commercialization Plan worksheet

15. Commercialization Plan worksheet
1) General Company Information:
Name, Place of Incorportion, Age, etc.
2) Product Licensing and Sales Information
Exclusive or non-exclusive
Manufacturing location.
Potential applications, estimated sales,…
3) Equity Licensing Information.
Cash Flows, debt structure, exit strategy, etc.

16. Export Control regulation:
Royalty offer:
Upfront fee: $10000
Running rate : 2% / revenue
Export Control regulation:
ITAR : International Traffic in Arms Regulations.
ITAR regulations dictate that information and material pertaining to defense and military related technologies (for items listed on the US Munitions List) may only be shared with US Persons unless authorization from the Department of State is received or a special exemption is used

17. Project Team Formation1 2 3 4
Ibrahim
Cross-functional Team for TT
Engineering & Project Planning Division
Marketing Division
R&D Company
Mortar Company

18. Product Development Roadmap
Pools, ponds, decoratives
Arts, crafts
Schools, churches
Streets, curbs, gutter
Showers, tubs
Foundation, floor repair
Products
Driveways
Low cost
houses
Concrete repairs
Roofing, Water-proofing
Countertops
House appliances
Repairing works
Markets
Knock down
houses in rural areas
Technology
Grancrete material
2010
2013
2016
2020

19. Work Breakdown Structure
Market and Technology Assessment
Financial Analysis
Acquiring formula from Argonne Natl. Lab.
Get license from Thai Industrial Ministry
Prototype product
Developing production process of the Grancrete technology
Facility Plan
Machinery Purchase
Suppliers
Production plan
Procurement plan
Marketing and distribution plan
Training program
Collaborate with interested parties such as environmentalist, government, bank, builder, building developer and local community to build an ecosystem

20. Gantt Chart

21. Gantt Chart
1 month
2 weeks
1 month
0 months
4 months

22. Q&A