“MozziQuit”

Executive Summary

An innovative Product of Leowin Solutions Pvt. Ltd.

The ultimate mosquito killing machine

Krishna Chaitanya S

Vamsi Krishna

Venkatesh Boddepalli

Ignatius Orwin Noronha

EXECUTIVE SUMMARY

“According to the World Malaria Report 2010, there were 225 million cases of malaria and

an estimated 781,000 deaths in 2009 and approximately half of the world's population in

over 108 countries are at risk of malaria.” – WHO report

Along with malaria, other diseases caused by mosquitoes like dengue, chikungunya, filaria,

encephalitis etc aren’t behind in taking the precious lives of humans. These simply point out that

diseases transmitted by mosquitoes are of serious concern in the present times. Governments

across the globe are trying to fight the diseases spread by mosquitoes and huge amounts are

being spent by both national and international organisations towards this.

Gap Analysis

Today there are various options available in the country to

prevent mosquitoes and some of them being the leading brands.

But according to a research study conducted by the Malaria

Research Centre (MRC), they found that NONE of the leading

brands provided 100% protection against mosquitoes. Not

only that they cause various side effects like breathlessness,

constant fatigue, muscle & joint pain, generalized physical

weakness, memory loss and persistent headaches.

There are various expensive mosquito traps available as well

they use harmful chemicals and UV radiations caused by the light

cause various skin and eyes related problems.

All these are the only existing options in the market and there is

a need to have a product which not only is economical in long

run but also doesn’t have any harmful effects. This is what we

aim to achieve through this innovative product that caters to the

needs of the society and help create world free of mosquito borne diseases.

Market Size

As of 2011, size of mosquito repellents is around Rs 20 billion. Industry experts say sales should

touch Rs 39 billion by 2014-15 representing a CAGR of 25%. The potential is huge: per capita

usage of repellents is still very low in India — 16.4 per cent households in urban areas, 22.6 per

cent in metros and a mere 6.9 per cent in rural areas.1

1 http://www.business-standard.com/india/news/mosquito-repellents-takevillage-road/419644/

“MozziQuit”: Value Proposition

“MozziQuit aims to provide a unique effective solution to eliminate mosquitoes at the most

economical cost without use of any chemicals and helps reduce the mosquito borne diseases.”

Product Description

Is an innovative, patented, tried, tested and approved device that attracts, traps and instantly kills mosquitoes

Traps mosquitoes by integrated vacuum and instantly kills them with its unique self-heating element

Require low power and is workable on solar and batteries as well Dead mosquitoes are collected in removable container to check

before disposal

Proprietary additives are combined with raw material, producing a unique part which also attracts mosquitoes by its glowing effect

Benefits

Help decrease the spread of malaria and other diseases Has no side effects and is easy to use Contains no chemicals and do not emit any hazardous smoke, fume,

smell or ash Helps users to reduce bites and sufferings from mosquitoes at less

than half the cost of its competitors price and also long lasting compared to others

Market for “MozziQuit”

A Patented and Innovative Product

For “MozziQuit”, in its Model Type 1, the company has already obtained Patent Grant from

Indian Patent Office in the year 2010 and also obtained Design Registration in India in the

year 2009 from Indian Patents, Designs & Trade Marks office for Model 1 type.

Model 1

Model 2

A patent has also been applied in US National Phase for Model No. 1 type which is already

published and is currently in ‘Patent Pending’ status in USA.

Currently the product has been developed to miniature/nano size besides making it light

weight and compact for which new patent application is been submitted in Indian Patent

Office. Simultaneously 5 new Design Registration Applications are submitted to Indian Design

Patent Office. Indian Patent Office has already granted 3 out of 5 Design Registration

Certificates during November 2011. 2 more Designs are expected to be granted shortly.

PCT International Search Agency has declared all the Claims of Patent as Novelty, Innovative

Step and Industrial Applicability.

The product has been tried, tested and approved by the only Government Authorised Agency

in India i.e. The National Institute of Malaria Research/Indian Council of Medical Research.

“MozziQuit” has won the Prestigious International Gold Medal Award in DST-Lockheed Martin

India Innovation Competition on 30/05/2010 conducted by IC2 Institute of Texas, USA as

programme managers. Quick Look Report of IC2 recommends to commercialise the Product.

“MozziQuit” has also won another Prestigious Award ISA the Best Electronic Product of the

Year 2010 under Healthcare Category on 02/02/2010.

“MozziQuit” has also won the First Prize of Rs. 50,000/- in inter college competition in the

year 2010 presented by the MBA students of SP Jain Institute of Management & Research,

Mumbai.

DSIR, Delhi has granted micro finance Grant of Rs. 75,000/- under TePP Phase I and has also

approved another Grant of Rs. 45 lakhs under TePP Phase II for commercialisation.

Defence Research & Development Est. of DRDO, Ministry of Defense has signed Engagement

Agreement for exploring the possibilities of using the same for Military Personnel and

Civilians.

Competitive Differentiation

Mosquito repellents form the predominant solution of the existing solutions in the market to

prevent mosquito bites. They do not kill mosquitos but just repel the mosquitoes for a temporary

period. The repelled mosquitoes will lay more than 300 eggs before they die. The mosquito

repellents are made out of harmful chemicals which lead to develop asthma and other diseases

due to their prolonged use specially to infants and senior citizens. Moreover, there are other

drawbacks of repellent systems – like sharp light rays and dangerous fumes which are harmful.

Mosquito traps, the other alternative in existing suite of solutions have been introduced in US.

The current range of mosquito traps operates with propane gas to attract, trap and kill the

mosquitoes. They are very expensive and cannot be used indoor. Also the exposed UV radiation

from UV lights is harmful to human eyes & skin and the chemical used ‘Octenol’ is hazardous to

health. Propane based traps pose risk of fire hazard as the company has recalled their product.

The innovative technology of the device "MozziQuit" Multi-purpose Mosquito trap will attract,

trap and instantly kill the female mosquitoes without use of any chemicals. The Device

"MozziQuit" is designed to eradicate mosquito population in the defined area of its use and also

to eliminate the invisible dust particles found in the atmosphere. This device could be used in

residential buildings, commercial buildings, restaurants, hotels, hospitals, Military installations,

vehicles, aircrafts, also at external locations by municipalities, NGOs, Trusts, corporations and

corporate etc.

Sales and Operation Plan

The manufacturing Plan is to start with an assembly unit from rented premises and set up a own

manufacturing unit at tax holiday zone in 2nd year. Also set up 4 more region wise assembly cum

distribution units in 2 year. The Marketing strategy is to have a mix of direct marketing, referral

marketing, digital marketing, personal selling and sales promotions to increase adoption of the

product. And the sales strategy is to have a dedicated sales force & marketing team to distribute

at maximum retail and medical store outlets.

Management Team and Advisory Board

Differentiation

“MozziQuit”

Attracts & kill mosquitoes Easy to use Eco-friendly No side effects Great Value for money Performance can be seen

visually Long Life, durable Compact and light weight

Existing Solutions

Repellents • Repel & multiply • Smoke, fumes • Health side-effects • Regular purchase / refills • High expenditure on

prevention Traps

• Harmful UV radiation • Harmful Octenol • Is expensive • Fire hazard from Propane • Fire Hazards

The other key people in the organization are Prashant V. Naik, Hemant Kothare, Rudolph Lobo.

Professional Experts that have served large public manufacturing sector have been identified

and will join the Board during the commercialization period.

The Advisory board will be shortly constituted and will consist of nationally prominent experts

other than above mentioned personnel.

Financials

By the end of year 2012-13, MozziQuit will be launched in 20 districts in 5 different states, with a

target of selling 2500 units in the entire district per month.

Projected Profit & Loss:

Particulars 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

A Net Sales 21.20 46.64 89.78 141.09 248.31 341.43

B Cost of production 11.34 24.28 44.88 68.89 118.56 160.57

C Admin & Personnel Costs 0.84 1.10 1.47 2.01 2.44 3.25

E Repayment of loan

0.48 0.46 0.44 0.42 -

F Royalty @ 3% 0.64 1.40 2.69 4.23 7.45 10.24

G Branding & Promotion 2.12 4.66 8.98 14.11 24.83 34.14

H Warranty costs @ 3% 0.64 1.40 2.69 4.23 7.45 10.24

Profit after tax 3.72 8.79 18.89 31.14 57.53 81.18

I Reserves & Surplus

(Closing Balances) 3.72 12.50 31.39 62.53 120.06 201.24

Break Even Point 45% 42% 37% 35% 33% 32%

Particulars Amount

(in crores)

Land 1.0000

Building including Plant & Machinery 1.0460

Product Design, Product Engineering of Models 2,3 4 0.1500

Moulds as per Model 1, 2, 3 & 4 0.3600

Contract Research by NIMR/ICMR 0.1000

Furniture, fixtures & Vehicles 0.2500

Rental Deposit for Factory, Office 0.2000

Working Capital 1.8255

Expenses on R&D, Patent 0.4328

Pre-operative expenses and Product launch expenses 1.2000

Total Cost of the Project 6.5643

Means of finance

Share Capital 0.1000

Promoters fund with Micro-finance grant of DSIR 0.2078

DSIR Grant under TePP Phase II = Rs. 0.45 cr. -

Fund from TDB 1.6000

Funding by VC/Angel Investors 4.6565

Total 6.5643