Innovative Packaging Technology“Putting you at the forefront of

technology”

Gadiel RossRichard

GreenwoodAbdul Kamara

Yakira Rodriguez

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.

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.

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.

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.

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

Case Forming, Packing & Sealing• (Specialty Milk & Dairy Products)

Omega-D Price $200,000.00

Genesis-MPrice $150,000.00

Glacial-CPrice $100,000.00

Wrapping, Bundling & Palletizing • (Specialty Shipping & Transport Goods)

Alpha-CPrice $250,000.00

SCIFI-SWPrice $94,000.00

SHRINK-SF1000Price $80,000.00

Value PropositionThe 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

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.

North American Market

IPT’s US packaging market accounts for 76% of total sales.

• Our major customers are geographically positioned inCalifornia – San FranciscoTexas - DallasMassachusetts – Boston Illinois – Chicago

• IPT has a 55% market share

Global Expansion – India (Macro)• India’s 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.

Global Positioning (Map of India)

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 world’s 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.

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.

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.

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.

• Russia’s 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.

Global Positioning (Map of Russia)

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.

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.

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. 

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

Profit/Loss Financial Statement IPT Financial Statements

(Open Plant in New Delhi) (Open plant in Moscow)

P/L 2007 2008 2009 2010 2011 2,012

Net Sales 1,900,000,000 1,950,000,000 1,960,000,000 1,960,000,000 1,960,000,000 1,960,000,000

Net Sales from subsidiaries 600,000,000 720,000,000 820,000,000 910,000,000 1,050,000,000 1,200,000,000

Total Sales 2,500,000,000 2,670,000,000 2,780,000,000 2,870,000,000 2,860,000,000 3,160,000,000

Cost of Goods Sold 1,999,980,000 2,010,000,000 2,030,000,000 2,040,000,000 2,060,000,000 2,070,000,000

Gross Profit 500,020,000 660,000,000 750,000,000 830,000,000 800,000,000 1,090,000,000

Operations Expense:

Promotion 240,000 240,000 260,000 260,000 260,000 260,000

Sales & Administration 1,500,000 1,500,000 1,800,000 1,900,000 1,900,000 1,900,000

Payroll 2,000,000 2,500,000 3,600,000 4,000,000 4,000,000 4,000,000

Accumulated Depreciation 50,000 50,000 250,000 300,000 300,000 300,000

Insurance 1,000,000 1,000,000 1,500,000 1,750,000 1,750,000 1,750,000

Research and Development 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000

Misc. 240,000 380,000 501,000 570,000 590,000 600,000

Operating Expenses 105,030,000 105,670,000 107,911,000 108,780,000 108,800,000 108,810,000

Taxes 8,402,400 8,453,600 8,632,880 8,702,400 8,704,000 8,704,800

Net Profit 386,587,600 545,876,400 633,456,120 712,517,600 682,496,000 972,485,200

Operational Expenses – 5 yrs

103,000,000

104,000,000

105,000,000

106,000,000

107,000,000

108,000,000

109,000,000

2007 2008 2009 2010 2011 2012

Operational Expenses

Relating Sales to Profits

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

3,500,000,000

2007 2008 2009 2010 2011 2012

Sales

Gross Profit

Net Profit

Five Year International Sales Development Plan (25% Increase)

Net Sales (All Markets)

JOB AIDS

ExportingIndia

Joint VentureRussia

FDIIndia

FDIRussia

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 $820,000,000Total 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/ServiceFocus on Aftermarket Expertise development

Rebuttals to Negotiation Roadblocks

Give-Get List for Negotiation Tradeoffs

Negotiation Tracker

Product/Service Satisfaction Tracker

Business Development Prompter

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

$2,670,000,000 $2,780,000,000 $2,870,000,000 $3,010,000,000 $3,160,000,000