5 Years Business Plan2015-20

Albedo Technology Co. Ind. Ltd.

Albedo Technology Co. Ind. Ltd.

Company Name: ALBEDO TECHNOLOGY CO. IND. LTD.

Repersentative: Zhang Song Long, chairman, Albedo worldwide

Enquiries to Noida, UP, india, Corporate Officer

Mr. Kim, CEO & MD, Albedo India

ceo@albedo.in

Albedo announces

5-years Business plan 2015-20

Hongkong (March 22, 2015) – Albedo Technology Co. Ltd. (hereafter, Albedo)

announced a new 5-Year Business Plan, which will span from April 1, 2015

through out March 31, 2020 for newly subsidiary venture “Albedo Technology

Co. Ind. Ltd.” in India.

1. EXECUTIVE SUMMARY

Albedo Technology Co. India Limited, is a subsidiary company of Albedo Technology Co. Ltd (Hongkong), a multi technology company, focused on providing best quality products to customers.

Corporate office in Noida, UP is established for the first year of operations.

Our Company has been formed on the basis of ‘’i3- Inspiration, Idea and Innovation“ and these all have come from the support of our dedicated team work and supportive costumers.

Sales Projections

YEAR SALES (INR) PROFITS (INR)

SALES / PROFITS (%)

2015-16 0.8 billion 72 million 9.00%

2016-17 2 billion 200 million 10.00%

2017-18 3 billion 330 million 11.00%

2018-19 5 billion 650 million 13.00%

2019-20 6 billion 900 million 15.00%

Highlights

Quality System

Quality system implementation

Leadership and management review

Resource management Design and development

implementation Supplier management Service Provision planning

and control Document and record control

Objectives and Goals Sales of INR 0.8 billion the first

year, approaching INR 6 billion at the end of the five years.

Over 15% operating profit margin. 10% of ROE or over. Strengthen business in key

markets (Tier I cities) and emerging markets (Tier II & III cities).

Flexible corporate structure to navigate through changing business environment.

Objectives and Goals Achieve 100% of market value at the end

of the five years of operations. Increase gross margin to 70% by the fifth

year of operations. Implement a quality management system

under ISO 9000 (2nd year). Increase its installed capacity to 50% at

5th year. Increase its labor positions to 50 % at 5th

year Ensure that all personnel are trained to a

level of familiarity with the quality management system appropriate to the individual’s degree of responsibility.

Mission

Albedo Technology Co. Ind. Ltd. is a subsidiary company of Hong Kong based conglomerate, which is a manufacturer & Supplier company of Lighting, Electrical Accessories, Adhesive, Paint and Small Home Appliances Albedo with a blend of international technology and empowered human capital, have been able to serve the people in India, with best in class products.

Market Opportunity

Challenge: Manufacturing

“The Albedo believes India’s future depends on a skilled, productive and technically trained workforce. Every citizen

needs to know that the winners in the global marketplace will be companies with the best workers.”Dream !t Do !t Albedo Campaign

Zhang Song Long, Chairman, Albedo

“If we don’t address the skills issue, our economy will face a serious decline.”

Kim, CEO & MD, Albedo India

Challenge: LED Lighting Industry

Lighting will be INR 350 billion industry in India. LED lighting will be INR 216 billion industry in 2020. lack of awareness, the presence of sub-standard products,

lack of technical standardized norms. The high cost of manufacturing due to low volumes. The price

for the end consumer is still high Many definitions and metrics used in the traditional lighting

industry are not applicable to LED technology.

2. COMPANY

C-49, Sector – 10, Noida. UP, India, Pin - 201301

Company Ownership

Albedo Technology Co. Ind. Ltd. Is a limited-liability company and a subsidiary company of Albedo Technology Co. Ltd (Hongkong).

Startup Summary

Its start-up expenses amount to INR 10 million which allows for initial legal expenses, licenses, permits, stationary, specialty software, office equipment, and furniture.

Initial investment of INR 150 million for product, advertisement and others start-up procedure.

Albedo Hongkong and Albedo India contributed 51% and 49% respectively towards the overall start-up costs.

3. PRODUCT DESCRIPTION

AlbedoLED Paint

Electrcal Wiring Accessories

Adhesive Small Home Appliances

AlbedoCFL

Products:

Albedo Products

Lighting Paints Small Home Appliances

AlbedoLED

AlbedoCFL

Electrical Wiring

Accessories

Interiors

Exteriors

Adhesive

Metals

Woods

Kitchen Appliances

Heater

Iron

Vacum Cleaner

Tape

Adhesive

Switch & Socket

Switchgear

Wire

4. INDUSTRY ANALYSIS & BUSINESS STRATEGY

Product Market Size (2015)

Estimated Market Size (2020)*

Lighting 220 450

Paints 400 650

Adhesive 90 150

Electrical Wiring Accessories

170 310

Small Home Appliances

200 380

In billion Rs.

Product Status

Product Strategy

Business Strategy

Regional Strategy

Regional Sales Target (FY2020)

Transition to a Low-cost Operating Framework

Business Analysis(Product-wise Sales Target - FY 2020)

5. RESEARCH AND DEVELOPMENT

Albedo has a strong Research & Development team which is continuously engaged in bringing new technology and innovation in manufacturing process to bring the production cost as low as possible with the best quality.

R&D Strategy

6. Distribution PlanDistribution plan for lighting products

Region Distribution System

2015-16

2016-17

2017-18

2018-19

2019-20

Total

North Zone

Super Distributor

Distributor/Dealer

East Zone

Super Distributor

Distributor/Dealer

South Zone

Super Distributor

Distributor/Dealer

West Zone

Super Distributor

Distributor/Dealer

Distribution planDistribution plan for Paints products

Region Distribution System 2015-16

2016-17

2017-18

2018-19

2019-20

North Zone Super Distributor 23 25 32 34 36

Distributor/Dealer 102 140 180 240 360

Center Zone Super Distributor

Distributor/Dealer

East Zone Super Distributor

Distributor/Dealer

South Zone Super Distributor

Distributor/Dealer

West Zone Super Distributor

Distributor/Dealer

North East Zone

Super Distributor

Distributor/Dealer

Distribution planDistribution plan for Small Home Appliances products

Region Distribution System

2015-16

2016-17

2017-18

2018-19

2019-20

Total

North Zone Super Distributor

Distributor/Dealer

Center Zone Super Distributor

Distributor/Dealer

East Zone Super Distributor

Distributor/Dealer

South Zone Super Distributor

Distributor/Dealer

West Zone Super Distributor

Distributor/Dealer

North East Zone

Super Distributor

Distributor/Dealer

Distribution planDistribution plan for Adhesive products

Region Distribution System

2015-16

2016-17

2017-18

2018-19

2019-20

Total

North Zone Super Distributor

Distributor/Dealer

Center Zone Super Distributor

Distributor/Dealer

East Zone Super Distributor

Distributor/Dealer

South Zone Super Distributor

Distributor/Dealer

West Zone Super Distributor

Distributor/Dealer

North East Zone

Super Distributor

Distributor/Dealer

Distribution planDistribution plan for Electrical Wiring Accessories products

Region Distribution System

2015-16

2016-17

2017-18

2018-19

2019-20

Total

North Zone Super Distributor

Distributor/Dealer

Center Zone Super Distributor

Distributor/Dealer

East Zone Super Distributor

Distributor/Dealer

South Zone Super Distributor

Distributor/Dealer

West Zone Super Distributor

Distributor/Dealer

North East Zone

Super Distributor

Distributor/Dealer

Details about Region

North Zone – Delhi, UP, Haryana, Punjab, Uttrakhand, Himachal Pradesh, J&K

East Zone – West Bengal, Bihar, Jharkhand, Odisha, North East India

South Zone – AP, Tamilnadu, Telangana, Karnataka, Kerala

West Zone – Rajasthan, Gujarat, Maharashtra, MP, Chhattisgarh, Goa

Headcounts

7. MARKETING RESEARCH AND EVALUATION

Albedo will focus on Lighting, Paints, Adhesive, Electrical Wiring Accessories and Small Home Appliances Industry.

Product Segmentation

Product Competitor Albedo Advantage Target (2020) in INR

Lighting Philips, Syska, GE, Eveready, Bajaj, Havels

3 Years warranty with competitive price.

2.4 Billion

Paint Asian Paints, Nerolac, Berger, Dulux, Nippon

Advance in technology with best quality.

1.8 Billion

Small Home Appliances

Bajaj, Prestige, Sunrise, Hawkins, Butterfly

The best service after sales.

0.9 Billion

Adhesive & Sealant

Pidilite, Henkel, 3M, Sika,

The strongest adhesive in Industry.

0.42 Billion

Switches & Sockets

Anchor, Havels, Crompton, ABB,

The most stylish product.

0.48 Billion

Advertising

The products will be advertising in various newspapers such as Hindustan, Dainik jagaran, Times of India, The hindu and other regional newspapers.

Also, in related technical magazines

Advertising

Albedo products will be advertised in Radio and TV at the end of the first year.

Flyers and website. Public Relations by

participation on national events, Trade Fairs and other events.

Logos

CORPORATIVE LOGO

It will be used for formal communications

8. ORGANIZATIONAL CHART

Above chart is shown for lighting division, after launch of other division chart will be same.

9. CRITICAL RISK AND ASSUMPTIONS Liability for injury or death of

employees or other people on Albedo premises.

Liability for injuries or damage caused by products Albedo provides.

Destruction or theft of property, products, machinery, vehicles or other assets.

Loss of net income through lost sales or extraordinary expenses.

Risk Out of cash before orders

secured Competition price cutting Costs in excess of estimates Unmet schedule(s) Difficulties with credit Lots of orders and NO cash Unfavorable industry trends Sales projections not achieved Long lead times in

procurement Unexpected production costs

Management of Risks – Assumptions (Finance Risks)

Purchase adequate insurance to transfer financial responsibility for losses to Albedo insurer. Obtain enough insurance to cover all risks.

Know the Insurance Policies: review the policies with the independent insurance agent and, if necessary, purchase additional coverage to ensure that the business is fully protected.

Management of Risks – Assumptions (Transfer Risks)

Management of Risks – Assumptions (Control Risks)

Take a close look at how Albedo does business. marketing, facilities, employees, processes, Products and sales.

Take advantage of the excellent loss control services provided by many insurers.

10. BENEFITS TO COMMUNITYEmployee Benefits

Provide our employees with opportunities to use their professional skills

Provide Albedo employees with opportunities to use their professional skills outside their day-to-day environment.

Quarterly training program to the Continuing Professional Development.

Manage the administration of the training program to employees.

Employee Benefits

Strengthen employees’ leadership and motivation.

Make employees participate in the growth of the company.

Build new careers and opportunities for Albedo employees, dealer, distributor and partners.

Fortify supply chain system by special program of training in quality assurance.

Community Benefits

Provide internships to students attending surrounding universities.

Using environment friendly products.

Offering job placement Involvement in matters that affect

community businesses. Develop the understanding of key

social issues in your local community by scholarships.

Community Benefits Build new business contacts locally

and regionally. Work collaboratively with other firms

that need a range of professional skills and expertise to strengthen the technology and knowledge applied in Albedo products.

Be another alternative of Albedo products catagory.

Develop new opportunities in young people by training and special programs.

Create economic opportunity to the community as well as country.

11. Financial Plan

FINANCIAL OBJETIVES2016 2017 2018 2019 2020

Net Sales Value 800 2000 3000 5000 6000

COGS 456

(57%)

1100

(55.7%)

1650

(55%)

2670

(53.5%)

3120

(52%)

SG&A Expenses

(R&D Expenses-10%)

272

(34%)

686

(34.3%)

1020

(34%)

1067

(33.5%)

1980

(33%)

Operative Income

(Net Profit)

72

(9%)

200

(10%)

330

(11%)

650

(13%)

900

(15%)

Taxes (30%) 21.6 60 99 195 270

Net Income after Taxes 50.4 140 231 455 630

In INR millions

Financial Statements

BALANCE SHEET

CASH FLOW

Contact us

Thanks for your attention