aqua+ presentation
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Aqua+ Investor PresentationTRANSCRIPT
TARA
The Magic of Two Drops!
Pitch Presentation
TARA
Water Purification for BoP households is:•Expensive•Cumbersome•Low Priority
Bad water kills more children than wars!
• Financial Stress− Loss of income due to sick days
• Emotional Stress− Illness sometimes leading to
death
TARA
Complication
• Available solutions are not affordable
• Affordable solutions are not reliable
Hard nut to crack
TARA
Marketing Plan for 2011 ~ 12SolutionWe provide AFFORDABLE and RELIABLE water
purification solution to the BoP households
Aqua+ “The Magic of Two Drops” is:
• Affordable − Re. 1 per day…Cheaper than tobacco, mobile phones
TARA
Marketing Plan for 2011 ~ 12
• Affordable
• Easy to use − Add 2 drops / litre− Wait for 30 mins− Water is safe to drink
We provide AFFORDABLE and RELIABLE water purification solution to the BoP households
Aqua+ “The Magic of Two Drops” is:
Solution
TARA
Marketing Plan for 2011 ~ 12
• Affordable
• Easy to use
• Aspirational − Filter-like water within budget
We provide AFFORDABLE and RELIABLE water purification solution to the BoP households
Aqua+ “The Magic of Two Drops” is:
Solution
TARA
Go-to-market Strategy Distribution Channels:
Trust is the key to establish reliability
1. Social Enterprises 2. Govt. channels
− Capitalize on established trust for entry level acquisition
− Stock Aqua+ at local shops, chemists etc.
− ASHA workers
− Anganwadi workers
TARA
Marketing Plan for 2011 ~ 12Performance
• Sold 100,000 bottles Product Acceptability (Slums of Delhi to villages in Kerala)
• Provided safe drinking water to 50,000 HHs
• Signed contracts in hand for 540,000 bottles in FY 2013~14
• Distribution channels setup− Ideal Safety Systems (Kerala), CREATE (UP), IDOBRO (Maharashtra)
TARA
Marketing Plan for 2011 ~ 12Right Time to Scale
• “The Magic of Two Drops” accepted by consumers
TARA
Marketing Plan for 2011 ~ 12Right Time to Scale
• Product accepted
• Large untapped market− 167 million families in Indian BoP− Business potential of Rs. 60 billion per year
TARA
Marketing Plan for 2011 ~ 12Right Time to Scale
• Product accepted
• Market exists
− Lean on investment and human resources
• Distribution channels already exist
TARA
Marketing Plan for 2011 ~ 12Right Time to Scale
• Product accepted
• Market exists
• Easy to manufacture and distribute− De-centralized production is possible− FMCG Easy to stock and move− Margin for each stakeholder of value chain
• Lean on investment and HR
TARA
Marketing Plan for 2011 ~ 12Margin in Value Chain
TARA Channel Partner
“Last Mile” delivery
Consumer
CoP: Rs 11 MRP = Rs 30
Margin of Rs. 12 for distribution
Price: Rs 15
Tax & Freight: Rs 3
Landed cost: Rs 18
Margin: approx Rs 7
Landedcost: Rs 25
Margin: approx Rs 5Margin: Rs 4
Financials
TARA
Revenue
1. Social Enterprises 2. Govt. channels
Contract size : 5-10 K Selling Price : Rs 15
Year 1 : 8 partnersYear 2 : 14 partnersYear 3 : 25 partners
Contract size : 50-100 KSelling Price : Rs 13.48
Year 1 : 1 partnerYear 2 : 1 partnerYear 3 : 2 partners
TARA
Marketing Plan for 2011 ~ 12
Year 2 : Channels equal in sales revenueYear 3 : Channels equal in sales volume
Channel-wise GrowthRe
venu
e in
INR
Mill
ions
Channel 1: Social Enterprises
Channel 2: Govt. Channels
(2.9 L bottles)
(6.0 L bottles)(8.1 L bottles)
(9.0 L bottles)
(15.6 L bottles)
(15.6 L bottles)
TARA
For this we require Rs. 50 Lakhs investment
– Product Development: Rs. 7.5 Lakhs– Market development: Rs. 35 Lakhs– Channel Development: Rs. 7.5 Lakhs
Plan and Pitch
TARA
Team has over 50 person-years of experience
Core Team:
Siddharth Bountra
Pranay Samson
Shrashtant Patara
Supporting expertise:
Technical – Dr. K Vijayalakshmi
Sales & Mkting – Vijay Chaturvedi
Communication – Ipsos Research Pvt. Ltd.
Technology Partner – Antenna Technologies, Switzerland
Team
Contact
Primary contact: Siddharth BountraPhone number: +91 9971301338E-mail: [email protected]
Advisor: Shrashtant PataraPhone Number: +91 9818379060E-mail: [email protected]
TARA
Thank you
Appendices
TARA
Marketing Plan for 2011 ~ 12Sustainability
Our solution is sustainable because:
For the consumer:• Affordable• Easy to use• Readily available• Aspirational
For channel partner:• Social impact• Profitable (40% margin)• Risk-free• Tap into existing delivery network
TARA
Marketing Plan for 2011 ~ 12Risks
• Quality control of Product– Setup Food Grade Production unit with QC Protocol
• Open market for cheap knock-offs and similar products– Emphasis on brand; become Coke and Scotch Tape
• Distribution dependent on external channels– Adding partners to compensate loss of some
TARA
Marketing Plan for 2011 ~ 12Direct Costs
Total per bottle – Rs 5.45
Bottle with cap – Rs 3
Liquid solution – Rs 1.2
Label – Rs 0.5
Shrink wrapping – Rs 0.4
Packaging – Rs 0.35
TARA
Marketing Plan for 2011 ~ 12Financial Overview
Item 2013-14 2014-15 2015-16
Revenue 125 240 440
Cost of good sold 69 128 230
Labour 26 38 57
Marketing Costs 18 32 49
Admin expenses 13 15 20
Establishment cost 6 9 10
EBIDTA -7 18 74
Product Development 16 16 20
Finance costs 2 3 5
Depreciation 4 6 10
PBT -25 -1 49
TARA
Marketing Plan for 2011 ~ 12Product BriefAqua+ is:
• 50 ml bottle of Sodium Hypochlorite Solution (Liquid Chlorine)
• MRP is Rs. 30 per bottle
• Last for 1 month for a family of 5
• Easy to use: 2 drops per litre; wait 30 mins; water is safe to drink
TARA
Marketing Plan for 2011 ~ 12Competition
Chlorine Tablets− Not easily available − Bitter taste of purified water
Low cost water filters− Not affordable by the BoP− Spare parts not easily available
Boiling− Rising fuel prices makes it very expensive
TARA
1 million HHs provided with safe drinking water over 3 years
Reduction of carbon footprint by replacing boiling
Marketing Plan for 2011 ~ 12Social Value
SD
Social Equity
Environmental Quality
Economic Effeciency
TARA
Marketing Plan for 2011 ~ 12Market Size
According to McKinsey Global Institute:
167 million families in Indian BoPX
1% market shareX
1 bottle per month for 12 months=
20 million bottles or Rs. 600 million every year
Easier said than done but it provides long term target
Thank You