Business Plan for Multifunctional Health Monitoring Systems Vivek Singhwal Participant (3 rd batch) NirmaLabs

Outline Executive Summary The Product Market Competition Cost and selling price Marketing & Sales Core Team Organization Structure Financial Risks Incubation Proposal

Executive Summary

The Product

Market

Competition

Cost and selling price

Marketing & Sales

Core Team

Organization Structure

Financial

Risks

Incubation Proposal

Executive Summary The business plan is to establish a company for design and manufacturing multifunctional health monitoring systems. The multifunctional health monitoring system would be an electro medical system that can measure: height, weight, Body Mass Index (BMI), blood pressure, pulse rate, body fat percentage, and body fat mass. It would be a valuable gadget for: health centers, fitness clubs, gymnasium, schools, IT companies, hospitals, pediatricians, clinics, hotels and malls. Similar systems are already available in western countries and such imported systems price around Rs. 4,50,000 in India, therefore having smaller market; if we could manufacture such a system in about Rs. 30,000 then we can have large market.

The business plan is to establish a company for design and manufacturing multifunctional health monitoring systems.

The multifunctional health monitoring system would be an electro medical system that can measure:

height, weight, Body Mass Index (BMI), blood pressure, pulse rate, body fat percentage, and body fat mass.

It would be a valuable gadget for:

health centers, fitness clubs, gymnasium, schools, IT companies, hospitals, pediatricians, clinics, hotels and malls.

Similar systems are already available in western countries and such imported systems price around Rs. 4,50,000 in India, therefore having smaller market; if we could manufacture such a system in about Rs. 30,000 then we can have large market.

Executive Summary Project cost Projected Gross Sales and Profit in three years 11,888,064 4,65,61,000 1168 3rd 27,71,954 1,92,19,000 482 2nd (2,42,610) 42,74,000 107 1st Profit (Loss) in Rs. Gross Sales (Rs.) Number of units sold Year 35,93,500 Total cost 25,00,000 Start-up cost Rs. 10,93,500 Incubation cost (15 months)

The Product Multifunctional Health Monitoring System A user-friendly, ultra modern system from which can measure Height Weight Body Mass Index (BMI) Blood Pressure Pulse rate Body Fat Percentage Body Fat Mass

Multifunctional Health Monitoring System

A user-friendly, ultra modern system from which can measure

Height

Weight

Body Mass Index (BMI)

Blood Pressure

Pulse rate

Body Fat Percentage

Body Fat Mass

The Product (Picture)

The Product Key Features User Friendly On-Screen Display Managing old record Coin Operated Model Weighs up to 200 kg with accuracy of 0.1 kg Height measured by ultrasonic sensor from 0 to 7.0 ft with accuracy of 0.1 inch. Detailed printout

Key Features

User Friendly

On-Screen Display

Managing old record

Coin Operated Model

Weighs up to 200 kg with accuracy of 0.1 kg

Height measured by ultrasonic sensor from 0 to 7.0 ft with accuracy of 0.1 inch.

Detailed printout

The Product Detailed printout (Davi Y CiA):

Detailed printout (Davi Y CiA):

The Product (Technology involved) Height Measurement: Technology: Ultrasonic sensor Measurement: By time interval between the sound pulse is transmitted to the echo is received.

Height Measurement:

Technology: Ultrasonic sensor

Measurement: By time interval between the sound pulse is transmitted to the echo is received.

The Product (Technology involved) Weight Measurement: Technology: Strain-gauge load cells Measurement: It convert the load acting on them into electrical signals and we will use micro-controller to program this voltage output.

Weight Measurement:

Technology: Strain-gauge load cells

Measurement: It convert the load acting on them into electrical signals and we will use micro-controller to program this voltage output.

The Product (Technology involved) Body Mass Index (BMI): A statistical measure of the weight of a person scaled according to height. BMI is a better indicator of health risk than absolute body weight and a useful screening tool to access malnutrition and fatness. As a rough guideline for adults a BMI of less than 20 implies underweight, over 25 is overweight, and over 30 is obese.

Body Mass Index (BMI):

A statistical measure of the weight of a person scaled according to height. BMI is a better indicator of health risk than absolute body weight and a useful screening tool to access malnutrition and fatness.

As a rough guideline for adults a BMI of less than 20 implies underweight, over 25 is overweight, and over 30 is obese.

The Product (Technology involved) BMI = 28 BMI Does Not Measure Body Fat

The Product (Technology involved) Body Fat Index (Body Fat Percentage): It is simply the percentage of fat your body contains. body fat mass + lean body mass = total mass (body weight) Technology: Bio-impedance technique Measurement: The change in electrical resistance in body tissues by using a detectable electrical signal that is passed through the body.

Body Fat Index (Body Fat Percentage):

It is simply the percentage of fat your body contains.

body fat mass + lean body mass = total mass (body weight)

Technology: Bio-impedance technique

Measurement: The change in electrical resistance in body tissues by using a detectable electrical signal that is passed through the body.

The Product (Technology involved) Omron HBF-306 Body Fat Analyzer Cost $30 (around Rs. 1500)

The Product (Technology involved) Blood Pressure: Technology: Oscilometric Method Measurement: An air-filled cuff is wrapped around the patient's wrist. As the cuff is allowed to deflate, pressure data is recorded by the device. Devices measure the mean systolic and diastolic.

Blood Pressure:

Technology: Oscilometric Method

Measurement: An air-filled cuff is wrapped around the patient's wrist. As the cuff is allowed to deflate, pressure data is recorded by the device. Devices measure the mean systolic and diastolic.

The Product (Technology involved) Omron Wrist Blood Pressure Monitor Costs $33 (around Rs. 1500)

The Product (Technology involved) Software Technology involved: Data-management Profiling (individual level and company level) GUI Development (web based) Internet enabled + USB drive enabled systems Barcode reader or biometrics identification

Software Technology involved:

Data-management

Profiling (individual level and company level)

GUI Development (web based)

Internet enabled + USB drive enabled systems

Barcode reader or biometrics identification

Market India’s population is more than 1.08 billion and still growing. Growing India’s middle class Increasing awareness of health and fitness in India Increasing number of health clubs and gyms Exposure to television and internet has created a high level of consciousness about fitness. The Government is also promoting healthy habits; recently CBSE has asked all its affiliated institutions to start health clubs as part of a newly framed comprehensive school health program.

India’s population is more than 1.08 billion and still growing.

Growing India’s middle class

Increasing awareness of health and fitness in India

Increasing number of health clubs and gyms

Exposure to television and internet has created a high level of consciousness about fitness.

The Government is also promoting healthy habits; recently CBSE has asked all its affiliated institutions to start health clubs as part of a newly framed comprehensive school health program.

Market Source: Times of India, Friday, 7th July 06

Market

Market A copy of health record from medical Check-up file @ health center at Hiramani School.

Market Potential market High-class Schools, Residential Schools/ International Schools and Colleges / Academic Institutes Software Companies, Call Centre / BPOs, and other corporate companies located in Hyderabad, Bangalore, Chennai., Pune, Delhi, Gurgaon, Noida, Mumbai, Kolkata, Coimbatore, Mysore. High-Class Clubs (like Karnavati Club, Rajpat club, Pleasure club) Health Clubs / Gymnasiums, fitness clubs like VLCC Centers, First fitness Public place: Shopping Malls, Airports / Railway Stations, picnic place Hotels /Resort, Cruise Ships. Doctor Clinics, Dietitian, Pediatrician, Hospitals, Nursing Home and Physiotherapist Defense / Police Academy

High-class Schools, Residential Schools/ International Schools and Colleges / Academic Institutes

Software Companies, Call Centre / BPOs, and other corporate companies located in Hyderabad, Bangalore, Chennai., Pune, Delhi, Gurgaon, Noida, Mumbai, Kolkata, Coimbatore, Mysore.

High-Class Clubs (like Karnavati Club, Rajpat club, Pleasure club)

Health Clubs / Gymnasiums, fitness clubs like VLCC Centers, First fitness

Public place: Shopping Malls, Airports / Railway Stations, picnic place

Hotels /Resort, Cruise Ships.

Doctor Clinics, Dietitian, Pediatrician, Hospitals, Nursing Home and Physiotherapist

Defense / Police Academy

Market Initially, we will have two different models for targeting different market segment. System-S (System for Schools) System- HC (System for health clubs, shopping malls, hotels, hospitals, etc)

Initially, we will have two different models for targeting different market segment.

System-S (System for Schools)

System- HC (System for health clubs, shopping malls, hotels, hospitals, etc)

Competition Traditional measuring equipment Indian firms currently importing such multifunctional monitoring systems from Europe. Few known companies manufacturing similar systems in Europe are: Davi & CIA, Spain www.davicia.com DPS-Promatic, Italy www.dps-promatic.com Sokei, France http://www.sokei.fr/

Traditional measuring equipment

Indian firms currently importing such multifunctional

monitoring systems from Europe.

Few known companies manufacturing similar systems

in Europe are:

Davi & CIA, Spain www.davicia.com

DPS-Promatic, Italy www.dps-promatic.com

Sokei, France http://www.sokei.fr/

Competition Few known Indian companies importing such multifunctional health monitoring system from Europe are: Delmerindia, Vadodara http:// www.delmerindia.com (importing Systems from DPS-Promatic, Italy) Alexandra Scales India, Ahmedabad www.alexandrascales.com

Few known Indian companies importing such multifunctional health monitoring system from Europe are:

Delmerindia, Vadodara http:// www.delmerindia.com (importing Systems from DPS-Promatic, Italy)

Alexandra Scales India, Ahmedabad www.alexandrascales.com

Competition

Competition

Cost and Selling price System-S (Bill of materials per unit): 16,500 Total 1500 Misc. 12 1000 Packaging/forwarding cost 11 2400 Small printer 10 300 Network card 9 1500 Hard disk 8 3000 Outer casing 7 1200 Bioelectrical impedance device 6 1000 Ultrasound sensor 5 800 Load Cell 4 800 Power Supply 3 1000 LCD Display / Keypad 2 2000 Micro controller processor 1 Cost (in Rs.) Component S. No.

System-S (Bill of materials per unit):

System-HC (Bill of materials per unit) Added  Added  19,350 Total 1500 Misc. 14 1000 Packaging/forwarding cost 13 1500 Coin Validator (optional) *12 2400 Small printer 11 300 Network card 10 1500 Hard disk 9 3000 Outer casing 8 1200 Bioelectrical impedance device 7 1350 Blood pressure equipment *6 1000 Ultrasound sensor 5 800 Load Cell 4 800 Power Supply 3 1000 LCD Display / Keypad 2 2000 Micro controller processor 1 Cost (in Rs.) Component S. No.

Cost and Selling price This price does not include taxes. The cost to the customer will include excise duty tax, VAT and Octroi which will be around 20 percent of this amount. 42,000 System-HC 2 37,000 System-S 1 Selling Price (in Rs.) Model S. No.

Marketing & Sales Primary targets: schools, High-class clubs, health clubs and IT and BPO companies. Sales operation: started from Pune latter Bangalore and Mumbai. In first year we would go for direct sales. Commission (employees): Rs 3000 per unit sales Two sales executives in every metro city or cities where we opt for direct sales. We assume that schools will take 3 to 5 visits i.e. 2 to 3 months to confirm a sale, 2 to 3 visits incase of Gym or IT, BPO company.

Primary targets: schools, High-class clubs, health clubs and IT and BPO companies.

Sales operation: started from Pune latter Bangalore and Mumbai.

In first year we would go for direct sales.

Commission (employees): Rs 3000 per unit sales

Two sales executives in every metro city or cities where we opt for direct sales.

We assume that schools will take 3 to 5 visits i.e. 2 to 3 months to confirm a sale, 2 to 3 visits incase of Gym or IT, BPO company.

Marketing & Sales In the second year we would expand rapidly to reach large customer base. Dealership: In second year we would opt sales through dealers. Commission ( to dealers) 15 percent commission to dealers. We expect total sales of 482 units in second year covering 11 cities with the help of dealers and 18 Sales executives. In the third year we projected sales of 1168 units covering more than 15 cities.

In the second year we would expand rapidly to reach large customer base.

Dealership: In second year we would opt sales through dealers.

Commission ( to dealers) 15 percent commission to dealers.

We expect total sales of 482 units in second year covering 11 cities with the help of dealers and 18 Sales executives.

In the third year we projected sales of 1168 units covering more than 15 cities.

Marketing & Sales Sales Coverage during first year *new city added Pune, Bangalore, Mumbai IV Pune, Bangalore*, Mumbai* III Pune, II Pune I Cities under operations Quarter

Marketing & Sales Sales Coverage during Second year Chandigarh and Indore IV Kolkata and Coimbatore III Hyderabad and Chennai II Delhi and Ahmedabad I New cities added Quarter

Marketing & Sales 107 Total no. of units sold 4,274,000 INR Total Expected Revenue 4,274,000 63 44 63 44 16 11 16 11 31 22 Total 17 9 6 3 6 3 5 3 12 12 9 4 3 4 3 4 3 11 2,563,000 39 25 10 7 3 2 3 2 4 3 10 IV 7 6 2 2 2 2 3 2 9 5 4 1 1 1 1 3 2 8 1,074,000 15 12 3 2 0 0 0 0 3 2 7 III 3 2 3 2 6 2 2 2 2 5 516,000 7 6 2 2 2 2 4 II 1 1 1 1 3 1 0 1 0 2 121,000 2 1 0 0 0 0 1 I HC S HC S HC S HC S HC S Direct Selling Direct Selling Direct Selling 2 Sales Exec 2 Sales Exec. 2 Sales Exec. Total Revenue per Quarter (In Rs.) Total (per quart) Total (per quart) Total (per month) Total (per month) Mumbai Bangalore Pune Months Quarter

Marketing & Sales Projected Sales per Quarter

Projected Sales per Quarter

Marketing & Sales 4,65,61,000 1,92,19,000 42,74,000 Total Revenue 1,168 482 107 Total Unit Sales 669 277 63 System HC 499 205 44 System S Unit Sales 3rd Year 2nd Year 1st Year Projected Sales

Core Team The business structure of the company will be established after incubation. During incubation the project team will be composed of four members (details in Incubation plan). Technology –hardware and embedded systems. Product development Having Experience in hardware Technology Team Member (2) Technology, software Management, administration and over all execution of the project. 2.2 years B.Tech (CS) Vivek (myself) Focus Area Experience Qualification Name

The business structure of the company will be established after incubation. During incubation the project team will be composed of four members (details in Incubation plan).

Core Team Sales and Marketing Having some exp. in sales MBA (Marketing & Sales) Team Member (4) Product development Software and programming Technology Team Member (3) Focus Area Experience Qualification Name

Organization Structure Total staff First year (11) Second year (25) Third year (31) Organization structure (staff size)

Total staff

First year (11) Second year (25) Third year (31)

Financials  Start-up expenses  Total assets

Financials

Financials

Financials 428 % 1,18,88,064 242% 4,65,61,000 1168 3rd - 27,71,954 449 % 1,92,19,000 482 2nd - -2,42,610 - 42,74,000 107 1st (%) Increase in profit Profit (in Rs.) (%) Increase in Revenue Revenue (in Rs.) No of Unit sold Year

Risks Large overseas players may see India as a growing market over a period of time and consider either selling at competitive price or get manufactured from some low cost centers like China or Taiwan.

Risk mitigation (Entry barriers) Understanding and implementing an integrated systems. Ability to manufacture and sell at a competitive price. Adding tailor made features to specific user segment and internet enabled systems. First mover with focused market penetration and likelihood of word-of-mouth user experience in niche segments.

(Entry barriers)

Understanding and implementing an integrated systems.

Ability to manufacture and sell at a competitive price.

Adding tailor made features to specific user segment

and internet enabled systems.

First mover with focused market penetration and

likelihood of word-of-mouth user experience in niche

segments.

Incubation Proposal Time Line (15 months) December 2007 10. Launch of company November 2007 9. Finalizing assembly line, search for VC funding October 2007 8. Beta testing in market September 2007 7. Alpha testing of the product. July 2007 6. First complete prototype. June 2007 5. Database designing, GUI implementation. March 2007 4. Making system network enabled with Ethernet card. February 2007 3. Integration of whole system with LCD display and key pad. (first initial market launch) December 2006 2. Development of blood-pressure, body fat index and pulse. October 2006 First prototype for height-weight measurement

Time Line (15 months)

10. Launch of company

9. Finalizing assembly line, search for VC funding

8. Beta testing in market

7. Alpha testing of the product.

6. First complete prototype.

5. Database designing, GUI implementation.

4. Making system network enabled with Ethernet card.

3. Integration of whole system with LCD display and key pad. (first initial market launch)

2. Development of blood-pressure, body fat index and pulse.

First prototype for height-weight measurement

Incubation Proposal Personnel required during incubation (& cost involved) Cost in Rs. (no. of months) Personnel 24,000 (3 months) 4. Marketing & Sales personnel A person who can help us in pushing our product into the market. He would join at the end phase of incubation 104,000 (13 months) 3. Programmer (A person who can assist me to develop and design data base, GUI. A fresher who is fast learner with good programming skill. 112,000 (14 months) 2. Electronics Engineer An electronics engineer having knowledge microcontroller, PCB and circuit designing. 120,000 (15 months) 1. Vivek Singhwal (myself)

Personnel required during incubation (& cost involved)

Personnel

4. Marketing & Sales personnel

A person who can help us in pushing our product into the market. He would join at the end phase of incubation

3. Programmer

(A person who can assist me to develop and design data base, GUI. A fresher who is fast learner with good programming skill.

2. Electronics Engineer

An electronics engineer having knowledge microcontroller, PCB and circuit designing.

1. Vivek Singhwal (myself)

Incubation Proposal Equipment (& material) required for Incubation: 312,000 Total Cost 200,000 Wooden moulds for skinning 8 15,000 Skinning material 6 10,000 Coin and Currency validator 7 2,000 Programmable network card and adaptors 5 25,000 Mechanical equipment like screw-drivers, stands 4 20,000 Electronic equipment like bread-boards, soldering equipment, super glue, resistors, capacitors, power supply, wires, battery etc 3 25,000 Cost of Load Cell, Ultrasound sensor, Blood pressure equipment, Bioelectrical impedance device 2 15,000 Different types of microcontroller 1 Approx cost (In Rs.) Equipment (& material) Required S. No.

Incubation Proposal Cost of other facilities during Incubation 345,500 Total 120,000 Misc. Jobs Outsourced / Consultancy 12 150,000 NirmaLabs Incubation Overhead 11 9,000 Local Petrol Allowance 10 10,000 Books / Directories / Subscriptions 9 2,000 Visiting Cards, Stationary 8 5,000 Legal consultancy 7 3,000 Courier Charges 6 15,000 Guest Travel Compensation 5 8,000 Guest Accommodation Charges 4 6,000 Exhibition Participation Charges 3 10,000 Outstation Mobile Roaming charges 2 Will keep Idea mobile phone (Rs.) 7,500 Telephone expense 1 Particulars Approx cost Facilities Required S. No.

Incubation Proposal Total cost of the Incubation 1,053,500 Total Cost 50,000 Misc. 5 26,000 Traveling 4 345,500 Facilities + other expenses 2 320,000 Cost of Personnel 3 312,000 Equipment / Component Cost 1 Approx cost (In Rs.) Particulars S. No.

Incubation Proposal By the end of the incubation, we will develop 3-5 production ready units; put them at initial customer sites for beta testing to validate the product and its value proposition to the customer. We plan to launch the company by December 2007.