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InJaWa
InJaWa water systems by
EcoRise・Japan
Table of contents
• InJaWa Product Explanation
・Reverse Osmosis (RO) System P.2
・RO Membrane fundamentals P.3
・Explanation of the system P.4
• InJaWa Distinctions
・RO membranes P.5
・Housing P.6
・The need for pre-disposal P.7
・Pre-processing filter P.8
・Active carbon filter P.9
・Patent product “Ike-lite” P.10
・Trademark registration document P.11
・Pressurisation water pump P.12
• Business Development in India
・Indian economic conditions P.13
・Drinking water situation in India P.14
• About The Indian Water Purifier Market P.15
・Internet usage in India P.17
・Online sales volume P.19
• Contribution to Society P.20
・Cooperation NGO – “Eco  Friends” P.21
・Authorisation Of JICA P.22
・Assembly Operation Through The Indian NGO P.23
• Purification Diagram Of A Well and Outdoor Water Source P.25
・Water intake tank P.26
・Hand operation pump P.27
・High-pressure pump P.28
・Sponge materials P.29
• To Investors P.31
-1-
InJaWa Product Explanation
Reverse Osmosis (RO) System
Reverse Osmosis  (RO)  was  developed  in  the  late  1950’s  under  U.S.  Government  funding, as a
method of desalinating seawater.
Reverse osmosis occurs when the water is moved across the membrane against the
concentration gradient, from lower concentration to higher concentration. To illustrate,
imagine a semi-permeable membrane with fresh water on one side and a concentrated
aqueous solution on the other side. If normal osmosis takes place, the fresh water will cross
the membrane to dilute the concentrated solution. In reverse osmosis, pressure is exerted on
the side with the concentrated solution to force the water molecules across the membrane to
the fresh water side.
-2-
RO Membrane Fundamentals
Reverse  Osmosis  (RO)  was  developed  in  the  late  1950’s  under  the  U.S.  Government’s  Internal  
Affairs funding. The University of Florida, California and companies such as Dupont and Kodak
combined their forces, knowledge and expertise over a period of 5 years (using $75 million of
funding - present day calculation $223 million), as a method of desalinating seawater.
* By the end of 1960, sea-water to fresh-water plants started using this RO filter technology.
*In the 1970s, fishing boats, passenger boats, navy ships and other vessels realised the benefits
of RO systems and had them installed on-board.
*  In  1981,  NASA  space  shuttle  ‘Columbia’  was  equipped  with  an  on-board RO circulation drinking
water system.
* NASA, the NAVY, PKOs (Peace Keeping Operations), the IOC (International Olympic Committee)
and various countries Governments use RO-technology for sea water to clean water production.
Also, medical facilities for kidney disease dialysis and laboratories due to its reliability level
during testing.
As you can see, RO technology is in on-going use all over the world in every country, in every
kind of industry, in some form or other.
-3-
Explanation of the system
-4-
Our system uses 4-Stage Purification Technology
1. Unique Active Carbon Fibre filter
2. Patented "Ike-lite" filter
3. RO membrane
4. Addition Mineral filter
1
2
3 4
RO membrane
ERJ home-use system
Drain
Needle valve
Unique active carbon fibre filter
Patented "Ike-lite" filter
Pressurisation water pump
ERJ home-use system image
The American  RO  membrane  technique  ‘worldwide  patent’  time-limit expired, enabling makers
around the world to use the process, however thus producing various levels in standards of
quality.
Through collaboration with a Government-registered technology company, we selected the best
films to filter raw water, according to every type of water quality found on earth.
Without having overconfidence in our purification ability compared to other manufacturers, we
asked independent testing facilities to perform various tests - these are the results;
-5-
InJaWa Distinctions
RO membranes
Element of the
existing makers Flat sheet element
separation system
Structural drawing
Various RO membranes removal
examination report cards
Housing
Brackish water and sea water use
Vessel drawing for brackish water membrane,
seawater water conversion membrane
General household use
Both RO membrane and pre-filter housing,
with our uniquely designed service pressure of 200psi.
Brackish water and sea water use
* Effective operating pressure of brackish water membrane 220psi ~ 580psi
* Effective operating pressure of desalination water membrane 450psi~800psi
so we designed our original housing to surpass a service pressure of 1,000psi.
-6-
Vessel drawing for home RO membrane
General household use
The need for pre-disposal
Water includes various viruses and pathogens.
Arsenic, iodine, cesium-dioxin and seawater can all be filtered. However, due to these
bad conditions of raw water, clogging occurs in the filters causing reduced non-purification.
If filtering Japanese tap-water, it is possible to use the system for 5 or more years without
any problems. Yet, if an RO membrane was installed in China, it may only last for one month.
‘Scaling’  of  organic  matters  such  as  metal  ions  and  chlorine  are  cited  as  one  of  the  
weaknesses of RO membranes. Due to this, before these matters surge the RO membrane,
these particles are removed thus raising water purification efficiency and helping to extend
the RO membrane life.
Since the  state  of  Indian  tap  water  is  very  poor,  you  can  understand  how  important  “pre-
disposal”  filtration  is  required  within  the  water  filter  system  process.
-7-
Pre-processing filter
The pre-processing filter includes 350g of coconut shell active carbon and 350g of our
Japan-Patented Ike-lite. The active carbon absorbs residual chlorine and organic
matters, while the Ike-lite absorbs the inorganic ion particles.
Especially for these elements, we designed and developed a "one-of-a-kind openable
housing" that enables the end-user to be able to exchange (empty & refill) the active
carbon and Ike-lite components by themselves (refill bags sold separately). This unique
ability allows each person to be in control of their own water purification performance
and also reduces high filter-exchange costs.
By periodically refilling these 'removal agents', one can constantly maintain the highest
level of water purification. Ike-lite once every two weeks and active carbon once a
month, will keep things at the optimum level of water purification. RO membrane filter
exchange is recommended at least once a year.
(Replacement times may vary depending on the quality of the water in the region where
the systems are used, please refer to the InJaWa web site and Instruction Manual for more
details.)
-8-
Active carbon filter
As previously mentioned, the active carbon filter removes organic matters and
chlorine components in raw water.
Trihalomethane is a chemical substance produced during water purification by the
reaction of organic matters with chlorine found in water. Not only is this harmful to
the human body but it also lowers the quality of the RO membrane, that is why
the active carbon is such a vital component to have in a filtration system
We use coconut shell active carbon, which has the highest adsorption-level
available, and is able to maintain the highest purification of raw water.
(By adjusting the amount of active carbon, helps to maintain the maximum
efficiency of the system, as water-type varies from region to region.)
-9-
X-rays analysisExamination report card
Trihalomethane removal rate
by the active carbon
Patent product “Ike-lite”
• Ilke-lite
Especially for India, we collaborated with Ikeda
Industries in order to prepare the patent for "Ike-lite".
Using our patented Ike-lite in the filter system, enables
non-organic ions to be removed from raw water.
That is a huge advantage and this alone, differentiates
InJaWa systems over every other manufacturer in the world.
-10-
Measurement report results Material Safety Data Sheet (MSDS)
Ike-lite : forms its shape to
the quality of the water
-11-
Ike-lite Trademark registration document
Pressurisation water pump
• Relevance of pressure and flow rates
Pressure pumps used in household water purifiers in India often only have 60psi.
Due to this, the water purification time normally takes approximately 4 hours.
In order to efficiently pump purified water, we use a 100psi pump - approximately 1.6 times
faster than a regular pump. Theoretically, RO membranes have their maximum efficiency
potential when high pressure is applied.
• Also, in order to boost the local economy, we will be establishing local companies to
assemble the systems, as well as using local products to make the whole system. Not only
will this lower overall costs, but we will help grow the local economy, as well.
-12-
Business Development in India
Indian economic conditions
India's population and landmass are both approximately 9 times that of Japan. It is a country
that is accomplishing remarkable development and this year had an economic growth rate of
5.42%. Income structure has also increased over the last ten years and the average disposable
income has grown from 0.4% in 2000 to 1.5% in 2010, and in 2015 it is expected to be 3.2%.
Disposable income is around $35,000 for the wealthy but still only about $5,000 for the
younger generation. Low-income earners plummeted from 93.7% in 2000 to 53.4% in 2010,
and is forecast to be 37.2% in 2015.
The biggest change is within the middle class that has grown from 5.1% to 49.6% - 0.8% growth
is of the higher middle classes (earning more than $15,000 per year), whilst the lower middle
class (earning more than $5,000) is up to 10%.
Significant change in the economic structure has been taking place. However, maintenance of
the core infrastructure still remains extremely weak - average water supply usage time is 4.3
hours per day in approximately 80% of urban areas (Government of Japan, Ministry of Health,
Labour and Welfare report).
In addition to this, contamination by bacteria is common as it enters through the ageing water
pipes. This makes purchasing drinking water a necessity, not just in low-income homes but
affluent households, too.
Income bracket (household disposable income)
Wealthy class (US$35,000 and above)
Upper middle class (US$15,000 up to 35,000)
Lower middle class (US$5,000 up to 15,000)
Low income class (less than US$5,000)
Upper middle class :
Be able to purchase a privately-owned car
Lower middle class
Be able to purchase a motorcycle
Ratio at each Income Level
Wealthy class (US$35,000 and above)
Upper middle class (US$15,000 up to 35,000)
Lower middle class (US$5,000 up to 15,000)
Low income class (less than US$5,000)
-13-
Drinking water circumstances of India
• The Japanese Government's Ministry of Foreign Affairs states the following regarding the
drinking water situation in India:
http://www.mofa.go.jp/mofaj/toko/medi/asia/india.html
"India has a poor water situation, as water is supplied for only a few hours each day.
Therefore many homes pool water in a tank. However, tap water is often contaminated
from damage in the water pipes. And since tanks are easily contaminated, it is not safe to
drink water out of the faucet.
In addition to this, in many areas water pipes and sewage pipes run next to each other, so
sewage may possibly mix with tap water due to the fact that either/both of the tubes are
damaged. That is often the case, as we regularly see epidemics such as cholera and typhoid
fever.
In December 2010, the Delhi Water Authority checked the tap water from all faucets in
each household that had water, and found bacteria in one of every five houses."
-14-
City State
Water service diffusion rate and water supply time in the city
Population
Water service
diffusion rate
water supply
time
Ahmedabad Gujarat
Amritsar Punjab
Bangalore Karnataka
Balpur Madhya Pradesh
Chandigarh Chandigarh
Chennai Tamil Nadu
Coimbatore Tamil Nadu
Indore Madhya Pradesh
Jabalpur Madhya Pradesh
Jamshedpur Jharkhand
Kolkata West Bengal
Mathura Uttar Pradesh
Mumbai Maharashtra
Nagpur Maharashtra
Nashik Maharashtra
Rajkot Gujarat
Surat Gujarat
Varanasi Uttar Pradesh
Vijayawada Andhra Pradesh
Visakhapatnam Andhra Pradesh
20 city average
About The Indian Water Purifier Market
As you are fully aware, India's home-use  “water  purification  market”  is  having  
continuous excellent growth. The Associated Chambers of Commerce and Industry of India
(ASSOCHAM) predicts that the 2015 market sales will reach INR 70,000,000,000 - this shows
the immense size of the present market and future potential.
The attached data clearly shows this evidence, as can been seen with Ion Exchange (India) Ltd.
and Tata Chemicals Ltd.'s business records. This is not only visible with domestic manufacturers
but the continued growth of overseas companies entering the massive Indian market. Home-
use systems are a very attractive commodity and an easy-to-sell product.
Ion Exchange (India) Ltd.
Achievements change
Sales
EBITDA
EBITDA Margin
Operating income
Sales Percentage
Net
Profit rate
Total assets
Ratio of net worth
Interest-bearing debt balance
Tata Chemicals Limited
Achievements change
-15-
Ion Exchange (India) Ltd.
2012 Sales 7,216,000,000×15%=1,082,400,000INR(Water purifier sales)
1,082,400,000÷16,990(average unit price )=63,708台(2012 Sales number prediction)
Presently, mainly Internet sales (with some mail-order and store purchases) are the base of
such huge sales in India. However, with the support of JICA and the NGO, publicity of you
helping (volunteering) to clean the wells in India - using our utilised technology based on
international standards - will be huge National and International recognition, thus resulting
in enormous business sales.
Popular India manufacturer recommended sales prices (mail-order prices)
・Ion Exchange (India) Ltd. (*See below)
・KENT RO Systems Ltd. MRP: INR 16,500~57,000 (INR 13,065~54,000)
・Eureka Forbes Ltd. : INR 10,499~20,999 (INR 9,690~20,999)
・Hindustan Unilever Limited (HUL) : INR 10,990~20,990 (INR 10,500~18,290)
・Expert Water Solutions Private Limited : INR 11,200~15,500(INR 6,118~10,000)
・Tata Swach : INR 13,999~16,999(INR 12,500~16,999)
・Aquaguard : INR (INR 13,990~16,490)
・Aquagrand : INR 14,999~15,999(INR 5,99~6,999)
・Apex : INR 13,900~14,490(INR 5,050~5,555)
・Luminous Water Technologies Pvt. Ltd : INR 18,000 (INR 15,500)
・Electrolux
The RO membrane market alone with Ion Exchange, Eureka Forbes, Kent RO and Hindustan
Unilever (who combined, total approx. 70% of the market) has reached INR 10,000,000,000 ~
Their units sell from between INR 5,000 ~ 40,000.
*Ion Exchange (India) Ltd. ZeroB MRP:INR 36,990~15,295
Price Size Tank Flow Rate
Wave INR 15,295.00 50GPD 7L 5~7L/H
Sapphire INR 17,490.00 60GPD 6L 5~7L/H
Pristine INR 17,750.00 100GPD 10L/H
Emerald INR 17,990.00 75GPD 6L 8~10L/H
Kitchenmate INR 18,450.00 50GPD 8L 8L/H
Ultimate INR 18,990.00 100GPD 10L/H
eco RO INR 21,490.00 *80GPD 10L/H
Intello INR 36,990.00 75GPD×2or3 15-25L/H
Skid INR 25,990.00 75GPD×2or3 ~ For business use
-16-
Internet usage in India
• Reports made in 2013 show the overall Internet usage in India to be a mere 15.8% of the
population (1,252,000,000). In urban areas this is higher, however still only approximately
28% of residents (195,250,000). The 2016 Internet usage rate in urban areas is expected to
increase 1.7 times to 47%.
-17-
Online sales volume
This graph shows global online shopping sales per country. E-commerce being the highest in
China, then Germany, South Korea and India*, followed by the United Kingdom.
It should be noted that particular areas where online sales is increasing rapidly are India, Brazil,
Russia, Indonesia, Mexico and Vietnam.
* Presently only 15.8% of the population have Internet access, yet India already has #3 in the
world - future growth potential will be #1 *
-18-
Store sales development
On the other hand, even if store sales volume is lower than Internet sales, 43 Indian
companies have already expressed interest in InJaWa.
With effective advertising, Internet sales will grow through their websites, plus store sales
and mail-orders will also result in high sales volume.
-19-
Agency
Indian NGO
(employment-
related)
EcoRise・ Japan
Delivery
supplier
EcoRise・India
Indian corporation
Water purifier
delivery
Assembling,
delivery of goods
Mail orderMail order
Store
merchandising
Used clothing sales
Delivery
supplier
Material shipment
Development
Indian NGO
(Water-related) Purification of the
pollution wellAdvertising
Cooperation
JICA
Wholesale
Domestic sales
Sale in Bangladesh
Contribution to Society
• We have already fulfilled well water purification in Bangladesh. Therefore, with this
knowhow and the support of the NGO, we will provide clean water to Indian rural areas
that have poor or no water supply.
-20-
System set-up in Bangladesh Activity with the NGO in Bangladesh
Arsenic concentration
measurement of the well
Examination of water data in Bangladesh
Arsenic
Arsenic
Iron
Manganese
Water hardness
Chloride ion
Turbidity
Electric conductivity
Cooperation NGO – “Eco  Friends”
-21-
Indian NGO – “ECO  FRIENDS”
Chromium laced yellow-green water
coming out of a hand pump in Noraiakheda.
Kids afflicted with various skin problems caused by water
Authorization Of JICA
• About JICA
JICA (Japan International Cooperation Agency) unitarily works with the Japanese
Government ODA as their implementing body relating to international cooperation in
developing countries around the world. They assist in choosing the most suitable aid methods
for various situations in various countries. According to these various difficulty situations, they
are problem-solvers, assisting in the overall implementation of grants to the appropriate places.
This business has already received JICA authorisation. Being a JICA-approved resourcing
business is a significant achievement (after their intense investigation and research), as it
confirms future grants from the Japanese Government and their support leading to country-
to-country ODA business.
-22-
Assembly Operation Through The Indian NGO
• While jointly saving on shipping costs and import duties - as only necessary parts, instead
of the final product will be sent - we will not only be able to help lower final sales prices to
boost business, but with the procurement of high quality pumps and active carbon that are
available in India, this will revitalise regional economies and the promotion of employment,
too.
-23-
Mr. Chandrani arrived in Japan 33 years ago,
setting-up 'Japan Business Services' that
specialised in the import and sales of Indian
black tea, and assisted in opening two
international Indian primary schools that
have over 800 students. In addition to this, he
is the sponsor of the NPO supporting lower-
income families that we will use in the
assembly program of InJaWa products in
India.
Working women stand in a tea
plantation of Mr.Chandrani
Because of his continued support for
women to help them become
independent by giving them work in his
tea plantations (but this is only seasonal
work), Mr. Chandrani strongly wishes to
tie-up with our business in order to give
these local women and children peace-of-
mind that they can finally have a steady
income and a real life.
Using the NGO's large networks (of building schools, low-income workers and sending
bicycles from Japan), to start local business will also help the economy.
As an example, rather than simply sending clothing as giveaway donations, starting a
Recycled Revenue Centre (initially with much needed clothing) employing people to
promote this business. And due to India's unreliable infrastructure and unstable
transportation services, getting locals to be responsible for InJaWa product deliveries
when commercial services are not available, will add better customer service and
therefore better business profits.
By using the NGO's community-based networks will help to improve the overall life of the
Indian people. This will also contribute to the promotion of the working population, thus
becoming a high level social contribution to business overall.
-24-
People gathering in front of the NGO
in search of work
The age-specific unemployment rate
Urban area
Rural area
Purification Diagram Of A Well and Outdoor Water Source
India's water situation is extremely critical. Data shows that all local conditions are as such,
however this is much more realistic and apparent when the well-situation crisis is seen with
your own eyes. Our (EcoRise・Japan) dedication to India, is that no matter how dirty or
contaminated the water is, clean water purification is guaranteed.
Suppressing the clogging of the RO membrane, in order to extend its life is a vital part of the
system. That is why two-layer pre-filtration before the water intake tank is essential and also
reduces the load on the RO membrane, as only then can total combined-purification be
possible due to the severe conditions of the water in India.
In addition, we developed a manual pump (Patent-pending*) for places that have no
electricity or functioning water supply, that puts out 800psi pressure necessary to purify sea
water through the membrane.
* We are filing for Patents in India for our Manual Pump and Ike-lite *
We already have a proven track record in Bangladesh in cooperation with the local NGO,
using a water intake tank and RO membrane to purify well water contaminated with arsenic
and heavy metals. This was even when the NGO's test results showed the well-water's
arsenic concentration to be more than 7 times the maximum limit.
Again, this shows the necessity and capability of pre-filtration by water intake tank, enabling
purification of any type of water and extending the durability of the RO membrane.
-25-
-26-
Water intake tank
Specifications in Bangladesh Arsenic
density
(ppb)
EC
(µS/cm)
Experiment well water 300~330 3700
RO membrane clean water 20 200
RO membrane discharge water 300 4400
Adsorption
filtration
building stones
Ester-based sponge
filter
Ether-based
urethane filter
Urethane strainer
Active carbon volume
relates to water
contamination level
Adsorption
filtration stones
Outlet for sludge
and tank cleaning
Structural image of water intake tank
Silicate stones
Cheesecloth
Porous materials
Hand operation pump
The brackish (sea water) membrane requires pressure
of 800psi in order for purification through this special
membrane. Manual pumps producing this much
pressure are not readily available in the world.
Our Patented in Japan (Patent-pending in India)
manual pump is able to achieve purification of
any kind of water according to any scenario.
-27-
Original image of hand operation pump Actual hand operation pump
High-pressure pump
Locations with electricity will use a high-pressure motor.
Maximum discharge 7Mpa(1,015psi)
Effective operating pressure of the
brackish water membrane is 220psi ~ 580psi,
while the sea water membrane is 450psi ~ 800psi.
When the required output water pressure is 580psi ~ 800psi
(i.e. using a pressure washer), by using the unit's spout and
installing our developed multi-coupler, it is also possible to
attach and use the system.
-28-
Couplers corresponding to various makers
Hydracell motor type G03
Low flow ability, high pressure capacity
Sponge materials
Ether type CF sponge filter
Known for its flexibility, excellent resilience and ability to remain chemically-stable even with
constant usage. It is especially effective with oils (including easily wetted swollen solvents). Even
though strength may decrease when it is swollen, there is no chemical degradation and it fully recovers
when dry. It is predominant with chemical properties such as chemical resistance, and even more
effective than an MF filter for acids (especially nitric acid), alkalis, caustic soda and hydrochloric acid.
Ether type MF sponge filter
Excellent for oil resistance and with outstanding strength against tension, the MF filter has even higher
heat resistance than the CF filter.
These sponges have the most effective results when purifying natural raw water.
-29-
To Investors
We are inviting investors to purchase 100 to 5,000 units of the distribution rights for this
household RO membrane water purifier, at 20,000 yen per unit (consumption tax 1,600 yen
separate). In return, we are offering these principal returns;
Every product purchased is numbered and yields your initial investment, plus a 3,000 yen
commission once sold, plus (see the following "Adjustment conditions" pages)
-30-
Unit price 20,000 yen
(consumption tax 1,600 yen)
21,600 yen in total
3,000 yen sales
commission per unit soldImage of
"InJaWa" water
purifier made by ERJ
Delivery
Product saleInvestors
Price payment
Capital and commission EcoRise ・Japan Co. Ltd.
Adjustment condition
Option 1: In the case of 100 – 500 units
Every product purchased is numbered and yields your initial investment, plus a 3,000 yen
commission once sold.
Option 2: In the case of 501 – 5,000 units
For investors who purchase 500 or more units of distribution rights, there is an additional incentive;
not only the above initial investment and sales commission once sold, but also a permanent
maintenance commission on any and all thereafter purchased active carbon, Ike-lite and filters
by customers.
(Ike-lite · 350g x 24 times/year @ 500 yen per 8.4kg bag + active carbon · 350g x 12 times/year @
500 yen per 4.2kg bag + RO membrane exchange @ 500 yen/filter = 1,500 yen per unit/year)
In view of the dire conditions of the water situation in India, we predict a repeat rate of more than 90%.
Option3: In the case of 5,001+ units
In respect to a one-time purchase of 5,001 or more units of distribution rights, further sales will be
suspended.
Returns; The initial investment will be used to purchase products again once they have been sold.
Therefore returns will be as follows;
1) the 3,000 yen sales commission per unit sold
2) principal from your initial investment of 5,001+ units
3) permanent maintenance commission of 10,002 (or more, depending on initial purchase) units
i.e.
Principal 20,000 yen + commission 6,000 yen (3,000 x 2 units) x 5,001 units = 130,026,000 yen return on
100,000,000 yen investment
PLUS
Permanent maintenance commission of 1,500 yen/year for 10,002 (or more, depending on initial
purchase) units: 1,500 yen x 10,002 units x 90% (repeat rate) = 13,502,700 yen per year commission
paid while the water purifier is used.
-31-
4¥20,000 x Quantity
¥23,000 x Quantity
Investors
Investors
¥20,000 x Quantity
¥23,000 x Quantity + (¥1,500 x Quantity x 90% x Permanently)
Investors
¥20,000 x 5,001 units
(¥3,000+¥23,000) x 5,001 + (¥1,500 x 10,000 x 90% x Permanently)
Unit sales x 23,000 yen = your return
-32-
Sales target
500 units
100 units x 23,000 yen =
2,300,000 yen
Sales preparation in India
Development production
Contract
3 months
later
9 months
later
12 months
later
6 months
later
Sales target
700 units
Sales target
1,000 units
Sales target
100 units
500 units x 23,000 yen
= 11,500,000 yen
700 units x 23,000 yen
= 16,100,000 yen
1,000 units x 23,000 yen
= 23,000,000 yen
First year maintenance commission
Unit sales x 90% repeat rate x 1,500 yen
=2,300 units x 90% x 1,500 yen
=
3,105,000 yen
Sales commission of 3,000 yen will be paid up to 5,000 units
2,300 units x 3,000 yen + 3,105,000 yen
=
10,005,000 yen
Unit sales x 23,000 yen=
500 units x 23,000 yen=
11,500,000 yen
Total payment amount of the first year
Unit sales x 23,000 yen +maintenance commission
=2,300 units x 23,000 yen + 3,105,000 yen
=
56,005,000 yen
Your return for
2,300 units: 3,000 yen ×
2,300 units = 6,900,000 yen
Sales commencement
-33-
Sales target
2,000 units
15 months
later
21 months
later
24 months
later
18 months
later
Sales target
2,500 units
Sales target
3,000 units
Sales target
1,500 units
Second year maintenance commission
Unit sales x 90% repeat rate x 1,500 yen+ last  year’s  commission
= 2,700 units x 90% x 1,500 yen+3,105,000 yen
= 6,750,000 yen (5,000 units x 90% x 1,500 yen)
This will continue to be paid for as long as the water purifier is used.
Second year profit
(Remaining units from last year) x 23,000 yen+ maintenance commission
= 2,700 units x 23,000 yen+3,645,000 yen+3,105,000 yen
= 68,850,000 yen (Total 124,855,000 yen)
Third year onwards (maintenance commission)
6,750,000 yen (Total 131,605,000円)
In the case of 5,000 units
1,500 units x 23,000 yen
= 34,500,000 yen
Remaining 1,200 units x 23,000 yen
= 27,600,000 yen
-34-
Sales target
2,000 units
15 months
later
21 months
later
24 months
later
18 months
later
Sales target
2,500 units
Sales target
3,000 units
Sales target
1,500 units
Second year profit
For up to 5,001 units - payment of 3,000 yen sales commission
From 5,002 units - principal investment 20,000 yen + 3,000 yen sales commission
(2,701 units x 3,000 yen) +(5,001 units x 23,000 yen) + 13.501,500 yen
= 136,627,500 yen (Total 146,632,500 yen)
Third year onwards (maintenance commission)
13,501,500 yen(Total 160,134,000 yen)
Second year maintenance commission
Unit sales x two x 90% repeat rate x 1,500 yen+last  year’s  commission
= 7,702 units x 90% x 1,500 yen+3,105,000 yen
= 13,501,500 yen (10,002 units x 90% x 1,500 yen)
This will continue to be paid for as long as the water purifier is used.
2,500 units x 23,000 yen
= 57,500,000 yen
Remaining 1,702 units x 23,000 yen
= 39,146,000 yen
1,500 units x 3,000 yen
= 4,500,000 yen
Next 799 of 5,000 units x 23,000 yen
= 18,377,000 yen
Remaining 1,201 units x 3,000 yen
= 3,603,000 yen
In the case of 5,001 units
Implementation Plan
Please be aware that after initial purchasing payment, it takes approximately three months to
have the products made. During that time we will establish a company in India, in order to
proceed from the India-side. We also expect about a 3 month timeframe to have everything
organised. (The company formation process in India takes time, as it is in joint cooperation
with JICA.) These preparations are essential and we expect them to take approximately 6
months to make full adjustment. Due to this 6-month preparation time, sales are expected to
start after 7 months.
From these promotions, we are expecting powerful and quick-impact publicity, resulting in
good sales results. However, we have only set a sales goal of at least 1,000 units within the
first year of business. Be aware that payment of sales commissions (3,000 yen/unit) will be
performed quarterly.
(Simultaneously, we will commence sales in Japan following the 11th March 2011
disaster to assist people here, too.)
Rather than sending monthly/quarterly sales reports to each investor, in order for you to
always know the status of your invested capital, all units are numbered and we have
developed a software program that keeps up-to-date statistics on units sold. We will send
you all web site log-in information, so you can browse at ease.
Selling overseas with the purpose of changing the water system
process and water cleanliness for the whole of India (and other third-
world countries) is our goal. This is a long and dedicated and very
worthwhile project that requires a lifetime commitment by all –
we hope you are in this with us.
-35-

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In jawa business plan

  • 1. InJaWa InJaWa water systems by EcoRise・Japan
  • 2. Table of contents • InJaWa Product Explanation ・Reverse Osmosis (RO) System P.2 ・RO Membrane fundamentals P.3 ・Explanation of the system P.4 • InJaWa Distinctions ・RO membranes P.5 ・Housing P.6 ・The need for pre-disposal P.7 ・Pre-processing filter P.8 ・Active carbon filter P.9 ・Patent product “Ike-lite” P.10 ・Trademark registration document P.11 ・Pressurisation water pump P.12 • Business Development in India ・Indian economic conditions P.13 ・Drinking water situation in India P.14 • About The Indian Water Purifier Market P.15 ・Internet usage in India P.17 ・Online sales volume P.19 • Contribution to Society P.20 ・Cooperation NGO – “Eco  Friends” P.21 ・Authorisation Of JICA P.22 ・Assembly Operation Through The Indian NGO P.23 • Purification Diagram Of A Well and Outdoor Water Source P.25 ・Water intake tank P.26 ・Hand operation pump P.27 ・High-pressure pump P.28 ・Sponge materials P.29 • To Investors P.31 -1-
  • 3. InJaWa Product Explanation Reverse Osmosis (RO) System Reverse Osmosis  (RO)  was  developed  in  the  late  1950’s  under  U.S.  Government  funding, as a method of desalinating seawater. Reverse osmosis occurs when the water is moved across the membrane against the concentration gradient, from lower concentration to higher concentration. To illustrate, imagine a semi-permeable membrane with fresh water on one side and a concentrated aqueous solution on the other side. If normal osmosis takes place, the fresh water will cross the membrane to dilute the concentrated solution. In reverse osmosis, pressure is exerted on the side with the concentrated solution to force the water molecules across the membrane to the fresh water side. -2-
  • 4. RO Membrane Fundamentals Reverse  Osmosis  (RO)  was  developed  in  the  late  1950’s  under  the  U.S.  Government’s  Internal   Affairs funding. The University of Florida, California and companies such as Dupont and Kodak combined their forces, knowledge and expertise over a period of 5 years (using $75 million of funding - present day calculation $223 million), as a method of desalinating seawater. * By the end of 1960, sea-water to fresh-water plants started using this RO filter technology. *In the 1970s, fishing boats, passenger boats, navy ships and other vessels realised the benefits of RO systems and had them installed on-board. *  In  1981,  NASA  space  shuttle  ‘Columbia’  was  equipped  with  an  on-board RO circulation drinking water system. * NASA, the NAVY, PKOs (Peace Keeping Operations), the IOC (International Olympic Committee) and various countries Governments use RO-technology for sea water to clean water production. Also, medical facilities for kidney disease dialysis and laboratories due to its reliability level during testing. As you can see, RO technology is in on-going use all over the world in every country, in every kind of industry, in some form or other. -3-
  • 5. Explanation of the system -4- Our system uses 4-Stage Purification Technology 1. Unique Active Carbon Fibre filter 2. Patented "Ike-lite" filter 3. RO membrane 4. Addition Mineral filter 1 2 3 4 RO membrane ERJ home-use system Drain Needle valve Unique active carbon fibre filter Patented "Ike-lite" filter Pressurisation water pump ERJ home-use system image
  • 6. The American  RO  membrane  technique  ‘worldwide  patent’  time-limit expired, enabling makers around the world to use the process, however thus producing various levels in standards of quality. Through collaboration with a Government-registered technology company, we selected the best films to filter raw water, according to every type of water quality found on earth. Without having overconfidence in our purification ability compared to other manufacturers, we asked independent testing facilities to perform various tests - these are the results; -5- InJaWa Distinctions RO membranes Element of the existing makers Flat sheet element separation system Structural drawing Various RO membranes removal examination report cards
  • 7. Housing Brackish water and sea water use Vessel drawing for brackish water membrane, seawater water conversion membrane General household use Both RO membrane and pre-filter housing, with our uniquely designed service pressure of 200psi. Brackish water and sea water use * Effective operating pressure of brackish water membrane 220psi ~ 580psi * Effective operating pressure of desalination water membrane 450psi~800psi so we designed our original housing to surpass a service pressure of 1,000psi. -6- Vessel drawing for home RO membrane General household use
  • 8. The need for pre-disposal Water includes various viruses and pathogens. Arsenic, iodine, cesium-dioxin and seawater can all be filtered. However, due to these bad conditions of raw water, clogging occurs in the filters causing reduced non-purification. If filtering Japanese tap-water, it is possible to use the system for 5 or more years without any problems. Yet, if an RO membrane was installed in China, it may only last for one month. ‘Scaling’  of  organic  matters  such  as  metal  ions  and  chlorine  are  cited  as  one  of  the   weaknesses of RO membranes. Due to this, before these matters surge the RO membrane, these particles are removed thus raising water purification efficiency and helping to extend the RO membrane life. Since the  state  of  Indian  tap  water  is  very  poor,  you  can  understand  how  important  “pre- disposal”  filtration  is  required  within  the  water  filter  system  process. -7-
  • 9. Pre-processing filter The pre-processing filter includes 350g of coconut shell active carbon and 350g of our Japan-Patented Ike-lite. The active carbon absorbs residual chlorine and organic matters, while the Ike-lite absorbs the inorganic ion particles. Especially for these elements, we designed and developed a "one-of-a-kind openable housing" that enables the end-user to be able to exchange (empty & refill) the active carbon and Ike-lite components by themselves (refill bags sold separately). This unique ability allows each person to be in control of their own water purification performance and also reduces high filter-exchange costs. By periodically refilling these 'removal agents', one can constantly maintain the highest level of water purification. Ike-lite once every two weeks and active carbon once a month, will keep things at the optimum level of water purification. RO membrane filter exchange is recommended at least once a year. (Replacement times may vary depending on the quality of the water in the region where the systems are used, please refer to the InJaWa web site and Instruction Manual for more details.) -8-
  • 10. Active carbon filter As previously mentioned, the active carbon filter removes organic matters and chlorine components in raw water. Trihalomethane is a chemical substance produced during water purification by the reaction of organic matters with chlorine found in water. Not only is this harmful to the human body but it also lowers the quality of the RO membrane, that is why the active carbon is such a vital component to have in a filtration system We use coconut shell active carbon, which has the highest adsorption-level available, and is able to maintain the highest purification of raw water. (By adjusting the amount of active carbon, helps to maintain the maximum efficiency of the system, as water-type varies from region to region.) -9- X-rays analysisExamination report card Trihalomethane removal rate by the active carbon
  • 11. Patent product “Ike-lite” • Ilke-lite Especially for India, we collaborated with Ikeda Industries in order to prepare the patent for "Ike-lite". Using our patented Ike-lite in the filter system, enables non-organic ions to be removed from raw water. That is a huge advantage and this alone, differentiates InJaWa systems over every other manufacturer in the world. -10- Measurement report results Material Safety Data Sheet (MSDS) Ike-lite : forms its shape to the quality of the water
  • 13. Pressurisation water pump • Relevance of pressure and flow rates Pressure pumps used in household water purifiers in India often only have 60psi. Due to this, the water purification time normally takes approximately 4 hours. In order to efficiently pump purified water, we use a 100psi pump - approximately 1.6 times faster than a regular pump. Theoretically, RO membranes have their maximum efficiency potential when high pressure is applied. • Also, in order to boost the local economy, we will be establishing local companies to assemble the systems, as well as using local products to make the whole system. Not only will this lower overall costs, but we will help grow the local economy, as well. -12-
  • 14. Business Development in India Indian economic conditions India's population and landmass are both approximately 9 times that of Japan. It is a country that is accomplishing remarkable development and this year had an economic growth rate of 5.42%. Income structure has also increased over the last ten years and the average disposable income has grown from 0.4% in 2000 to 1.5% in 2010, and in 2015 it is expected to be 3.2%. Disposable income is around $35,000 for the wealthy but still only about $5,000 for the younger generation. Low-income earners plummeted from 93.7% in 2000 to 53.4% in 2010, and is forecast to be 37.2% in 2015. The biggest change is within the middle class that has grown from 5.1% to 49.6% - 0.8% growth is of the higher middle classes (earning more than $15,000 per year), whilst the lower middle class (earning more than $5,000) is up to 10%. Significant change in the economic structure has been taking place. However, maintenance of the core infrastructure still remains extremely weak - average water supply usage time is 4.3 hours per day in approximately 80% of urban areas (Government of Japan, Ministry of Health, Labour and Welfare report). In addition to this, contamination by bacteria is common as it enters through the ageing water pipes. This makes purchasing drinking water a necessity, not just in low-income homes but affluent households, too. Income bracket (household disposable income) Wealthy class (US$35,000 and above) Upper middle class (US$15,000 up to 35,000) Lower middle class (US$5,000 up to 15,000) Low income class (less than US$5,000) Upper middle class : Be able to purchase a privately-owned car Lower middle class Be able to purchase a motorcycle Ratio at each Income Level Wealthy class (US$35,000 and above) Upper middle class (US$15,000 up to 35,000) Lower middle class (US$5,000 up to 15,000) Low income class (less than US$5,000) -13-
  • 15. Drinking water circumstances of India • The Japanese Government's Ministry of Foreign Affairs states the following regarding the drinking water situation in India: http://www.mofa.go.jp/mofaj/toko/medi/asia/india.html "India has a poor water situation, as water is supplied for only a few hours each day. Therefore many homes pool water in a tank. However, tap water is often contaminated from damage in the water pipes. And since tanks are easily contaminated, it is not safe to drink water out of the faucet. In addition to this, in many areas water pipes and sewage pipes run next to each other, so sewage may possibly mix with tap water due to the fact that either/both of the tubes are damaged. That is often the case, as we regularly see epidemics such as cholera and typhoid fever. In December 2010, the Delhi Water Authority checked the tap water from all faucets in each household that had water, and found bacteria in one of every five houses." -14- City State Water service diffusion rate and water supply time in the city Population Water service diffusion rate water supply time Ahmedabad Gujarat Amritsar Punjab Bangalore Karnataka Balpur Madhya Pradesh Chandigarh Chandigarh Chennai Tamil Nadu Coimbatore Tamil Nadu Indore Madhya Pradesh Jabalpur Madhya Pradesh Jamshedpur Jharkhand Kolkata West Bengal Mathura Uttar Pradesh Mumbai Maharashtra Nagpur Maharashtra Nashik Maharashtra Rajkot Gujarat Surat Gujarat Varanasi Uttar Pradesh Vijayawada Andhra Pradesh Visakhapatnam Andhra Pradesh 20 city average
  • 16. About The Indian Water Purifier Market As you are fully aware, India's home-use  “water  purification  market”  is  having   continuous excellent growth. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) predicts that the 2015 market sales will reach INR 70,000,000,000 - this shows the immense size of the present market and future potential. The attached data clearly shows this evidence, as can been seen with Ion Exchange (India) Ltd. and Tata Chemicals Ltd.'s business records. This is not only visible with domestic manufacturers but the continued growth of overseas companies entering the massive Indian market. Home- use systems are a very attractive commodity and an easy-to-sell product. Ion Exchange (India) Ltd. Achievements change Sales EBITDA EBITDA Margin Operating income Sales Percentage Net Profit rate Total assets Ratio of net worth Interest-bearing debt balance Tata Chemicals Limited Achievements change -15- Ion Exchange (India) Ltd. 2012 Sales 7,216,000,000×15%=1,082,400,000INR(Water purifier sales) 1,082,400,000÷16,990(average unit price )=63,708台(2012 Sales number prediction)
  • 17. Presently, mainly Internet sales (with some mail-order and store purchases) are the base of such huge sales in India. However, with the support of JICA and the NGO, publicity of you helping (volunteering) to clean the wells in India - using our utilised technology based on international standards - will be huge National and International recognition, thus resulting in enormous business sales. Popular India manufacturer recommended sales prices (mail-order prices) ・Ion Exchange (India) Ltd. (*See below) ・KENT RO Systems Ltd. MRP: INR 16,500~57,000 (INR 13,065~54,000) ・Eureka Forbes Ltd. : INR 10,499~20,999 (INR 9,690~20,999) ・Hindustan Unilever Limited (HUL) : INR 10,990~20,990 (INR 10,500~18,290) ・Expert Water Solutions Private Limited : INR 11,200~15,500(INR 6,118~10,000) ・Tata Swach : INR 13,999~16,999(INR 12,500~16,999) ・Aquaguard : INR (INR 13,990~16,490) ・Aquagrand : INR 14,999~15,999(INR 5,99~6,999) ・Apex : INR 13,900~14,490(INR 5,050~5,555) ・Luminous Water Technologies Pvt. Ltd : INR 18,000 (INR 15,500) ・Electrolux The RO membrane market alone with Ion Exchange, Eureka Forbes, Kent RO and Hindustan Unilever (who combined, total approx. 70% of the market) has reached INR 10,000,000,000 ~ Their units sell from between INR 5,000 ~ 40,000. *Ion Exchange (India) Ltd. ZeroB MRP:INR 36,990~15,295 Price Size Tank Flow Rate Wave INR 15,295.00 50GPD 7L 5~7L/H Sapphire INR 17,490.00 60GPD 6L 5~7L/H Pristine INR 17,750.00 100GPD 10L/H Emerald INR 17,990.00 75GPD 6L 8~10L/H Kitchenmate INR 18,450.00 50GPD 8L 8L/H Ultimate INR 18,990.00 100GPD 10L/H eco RO INR 21,490.00 *80GPD 10L/H Intello INR 36,990.00 75GPD×2or3 15-25L/H Skid INR 25,990.00 75GPD×2or3 ~ For business use -16-
  • 18. Internet usage in India • Reports made in 2013 show the overall Internet usage in India to be a mere 15.8% of the population (1,252,000,000). In urban areas this is higher, however still only approximately 28% of residents (195,250,000). The 2016 Internet usage rate in urban areas is expected to increase 1.7 times to 47%. -17-
  • 19. Online sales volume This graph shows global online shopping sales per country. E-commerce being the highest in China, then Germany, South Korea and India*, followed by the United Kingdom. It should be noted that particular areas where online sales is increasing rapidly are India, Brazil, Russia, Indonesia, Mexico and Vietnam. * Presently only 15.8% of the population have Internet access, yet India already has #3 in the world - future growth potential will be #1 * -18-
  • 20. Store sales development On the other hand, even if store sales volume is lower than Internet sales, 43 Indian companies have already expressed interest in InJaWa. With effective advertising, Internet sales will grow through their websites, plus store sales and mail-orders will also result in high sales volume. -19- Agency Indian NGO (employment- related) EcoRise・ Japan Delivery supplier EcoRise・India Indian corporation Water purifier delivery Assembling, delivery of goods Mail orderMail order Store merchandising Used clothing sales Delivery supplier Material shipment Development Indian NGO (Water-related) Purification of the pollution wellAdvertising Cooperation JICA Wholesale Domestic sales Sale in Bangladesh
  • 21. Contribution to Society • We have already fulfilled well water purification in Bangladesh. Therefore, with this knowhow and the support of the NGO, we will provide clean water to Indian rural areas that have poor or no water supply. -20- System set-up in Bangladesh Activity with the NGO in Bangladesh Arsenic concentration measurement of the well Examination of water data in Bangladesh Arsenic Arsenic Iron Manganese Water hardness Chloride ion Turbidity Electric conductivity
  • 22. Cooperation NGO – “Eco  Friends” -21- Indian NGO – “ECO  FRIENDS” Chromium laced yellow-green water coming out of a hand pump in Noraiakheda. Kids afflicted with various skin problems caused by water
  • 23. Authorization Of JICA • About JICA JICA (Japan International Cooperation Agency) unitarily works with the Japanese Government ODA as their implementing body relating to international cooperation in developing countries around the world. They assist in choosing the most suitable aid methods for various situations in various countries. According to these various difficulty situations, they are problem-solvers, assisting in the overall implementation of grants to the appropriate places. This business has already received JICA authorisation. Being a JICA-approved resourcing business is a significant achievement (after their intense investigation and research), as it confirms future grants from the Japanese Government and their support leading to country- to-country ODA business. -22-
  • 24. Assembly Operation Through The Indian NGO • While jointly saving on shipping costs and import duties - as only necessary parts, instead of the final product will be sent - we will not only be able to help lower final sales prices to boost business, but with the procurement of high quality pumps and active carbon that are available in India, this will revitalise regional economies and the promotion of employment, too. -23- Mr. Chandrani arrived in Japan 33 years ago, setting-up 'Japan Business Services' that specialised in the import and sales of Indian black tea, and assisted in opening two international Indian primary schools that have over 800 students. In addition to this, he is the sponsor of the NPO supporting lower- income families that we will use in the assembly program of InJaWa products in India. Working women stand in a tea plantation of Mr.Chandrani Because of his continued support for women to help them become independent by giving them work in his tea plantations (but this is only seasonal work), Mr. Chandrani strongly wishes to tie-up with our business in order to give these local women and children peace-of- mind that they can finally have a steady income and a real life.
  • 25. Using the NGO's large networks (of building schools, low-income workers and sending bicycles from Japan), to start local business will also help the economy. As an example, rather than simply sending clothing as giveaway donations, starting a Recycled Revenue Centre (initially with much needed clothing) employing people to promote this business. And due to India's unreliable infrastructure and unstable transportation services, getting locals to be responsible for InJaWa product deliveries when commercial services are not available, will add better customer service and therefore better business profits. By using the NGO's community-based networks will help to improve the overall life of the Indian people. This will also contribute to the promotion of the working population, thus becoming a high level social contribution to business overall. -24- People gathering in front of the NGO in search of work The age-specific unemployment rate Urban area Rural area
  • 26. Purification Diagram Of A Well and Outdoor Water Source India's water situation is extremely critical. Data shows that all local conditions are as such, however this is much more realistic and apparent when the well-situation crisis is seen with your own eyes. Our (EcoRise・Japan) dedication to India, is that no matter how dirty or contaminated the water is, clean water purification is guaranteed. Suppressing the clogging of the RO membrane, in order to extend its life is a vital part of the system. That is why two-layer pre-filtration before the water intake tank is essential and also reduces the load on the RO membrane, as only then can total combined-purification be possible due to the severe conditions of the water in India. In addition, we developed a manual pump (Patent-pending*) for places that have no electricity or functioning water supply, that puts out 800psi pressure necessary to purify sea water through the membrane. * We are filing for Patents in India for our Manual Pump and Ike-lite * We already have a proven track record in Bangladesh in cooperation with the local NGO, using a water intake tank and RO membrane to purify well water contaminated with arsenic and heavy metals. This was even when the NGO's test results showed the well-water's arsenic concentration to be more than 7 times the maximum limit. Again, this shows the necessity and capability of pre-filtration by water intake tank, enabling purification of any type of water and extending the durability of the RO membrane. -25-
  • 27. -26- Water intake tank Specifications in Bangladesh Arsenic density (ppb) EC (µS/cm) Experiment well water 300~330 3700 RO membrane clean water 20 200 RO membrane discharge water 300 4400 Adsorption filtration building stones Ester-based sponge filter Ether-based urethane filter Urethane strainer Active carbon volume relates to water contamination level Adsorption filtration stones Outlet for sludge and tank cleaning Structural image of water intake tank Silicate stones Cheesecloth Porous materials
  • 28. Hand operation pump The brackish (sea water) membrane requires pressure of 800psi in order for purification through this special membrane. Manual pumps producing this much pressure are not readily available in the world. Our Patented in Japan (Patent-pending in India) manual pump is able to achieve purification of any kind of water according to any scenario. -27- Original image of hand operation pump Actual hand operation pump
  • 29. High-pressure pump Locations with electricity will use a high-pressure motor. Maximum discharge 7Mpa(1,015psi) Effective operating pressure of the brackish water membrane is 220psi ~ 580psi, while the sea water membrane is 450psi ~ 800psi. When the required output water pressure is 580psi ~ 800psi (i.e. using a pressure washer), by using the unit's spout and installing our developed multi-coupler, it is also possible to attach and use the system. -28- Couplers corresponding to various makers Hydracell motor type G03 Low flow ability, high pressure capacity
  • 30. Sponge materials Ether type CF sponge filter Known for its flexibility, excellent resilience and ability to remain chemically-stable even with constant usage. It is especially effective with oils (including easily wetted swollen solvents). Even though strength may decrease when it is swollen, there is no chemical degradation and it fully recovers when dry. It is predominant with chemical properties such as chemical resistance, and even more effective than an MF filter for acids (especially nitric acid), alkalis, caustic soda and hydrochloric acid. Ether type MF sponge filter Excellent for oil resistance and with outstanding strength against tension, the MF filter has even higher heat resistance than the CF filter. These sponges have the most effective results when purifying natural raw water. -29-
  • 31. To Investors We are inviting investors to purchase 100 to 5,000 units of the distribution rights for this household RO membrane water purifier, at 20,000 yen per unit (consumption tax 1,600 yen separate). In return, we are offering these principal returns; Every product purchased is numbered and yields your initial investment, plus a 3,000 yen commission once sold, plus (see the following "Adjustment conditions" pages) -30- Unit price 20,000 yen (consumption tax 1,600 yen) 21,600 yen in total 3,000 yen sales commission per unit soldImage of "InJaWa" water purifier made by ERJ Delivery Product saleInvestors Price payment Capital and commission EcoRise ・Japan Co. Ltd.
  • 32. Adjustment condition Option 1: In the case of 100 – 500 units Every product purchased is numbered and yields your initial investment, plus a 3,000 yen commission once sold. Option 2: In the case of 501 – 5,000 units For investors who purchase 500 or more units of distribution rights, there is an additional incentive; not only the above initial investment and sales commission once sold, but also a permanent maintenance commission on any and all thereafter purchased active carbon, Ike-lite and filters by customers. (Ike-lite · 350g x 24 times/year @ 500 yen per 8.4kg bag + active carbon · 350g x 12 times/year @ 500 yen per 4.2kg bag + RO membrane exchange @ 500 yen/filter = 1,500 yen per unit/year) In view of the dire conditions of the water situation in India, we predict a repeat rate of more than 90%. Option3: In the case of 5,001+ units In respect to a one-time purchase of 5,001 or more units of distribution rights, further sales will be suspended. Returns; The initial investment will be used to purchase products again once they have been sold. Therefore returns will be as follows; 1) the 3,000 yen sales commission per unit sold 2) principal from your initial investment of 5,001+ units 3) permanent maintenance commission of 10,002 (or more, depending on initial purchase) units i.e. Principal 20,000 yen + commission 6,000 yen (3,000 x 2 units) x 5,001 units = 130,026,000 yen return on 100,000,000 yen investment PLUS Permanent maintenance commission of 1,500 yen/year for 10,002 (or more, depending on initial purchase) units: 1,500 yen x 10,002 units x 90% (repeat rate) = 13,502,700 yen per year commission paid while the water purifier is used. -31- 4¥20,000 x Quantity ¥23,000 x Quantity Investors Investors ¥20,000 x Quantity ¥23,000 x Quantity + (¥1,500 x Quantity x 90% x Permanently) Investors ¥20,000 x 5,001 units (¥3,000+¥23,000) x 5,001 + (¥1,500 x 10,000 x 90% x Permanently)
  • 33. Unit sales x 23,000 yen = your return -32- Sales target 500 units 100 units x 23,000 yen = 2,300,000 yen Sales preparation in India Development production Contract 3 months later 9 months later 12 months later 6 months later Sales target 700 units Sales target 1,000 units Sales target 100 units 500 units x 23,000 yen = 11,500,000 yen 700 units x 23,000 yen = 16,100,000 yen 1,000 units x 23,000 yen = 23,000,000 yen First year maintenance commission Unit sales x 90% repeat rate x 1,500 yen =2,300 units x 90% x 1,500 yen = 3,105,000 yen Sales commission of 3,000 yen will be paid up to 5,000 units 2,300 units x 3,000 yen + 3,105,000 yen = 10,005,000 yen Unit sales x 23,000 yen= 500 units x 23,000 yen= 11,500,000 yen Total payment amount of the first year Unit sales x 23,000 yen +maintenance commission =2,300 units x 23,000 yen + 3,105,000 yen = 56,005,000 yen Your return for 2,300 units: 3,000 yen × 2,300 units = 6,900,000 yen Sales commencement
  • 34. -33- Sales target 2,000 units 15 months later 21 months later 24 months later 18 months later Sales target 2,500 units Sales target 3,000 units Sales target 1,500 units Second year maintenance commission Unit sales x 90% repeat rate x 1,500 yen+ last  year’s  commission = 2,700 units x 90% x 1,500 yen+3,105,000 yen = 6,750,000 yen (5,000 units x 90% x 1,500 yen) This will continue to be paid for as long as the water purifier is used. Second year profit (Remaining units from last year) x 23,000 yen+ maintenance commission = 2,700 units x 23,000 yen+3,645,000 yen+3,105,000 yen = 68,850,000 yen (Total 124,855,000 yen) Third year onwards (maintenance commission) 6,750,000 yen (Total 131,605,000円) In the case of 5,000 units 1,500 units x 23,000 yen = 34,500,000 yen Remaining 1,200 units x 23,000 yen = 27,600,000 yen
  • 35. -34- Sales target 2,000 units 15 months later 21 months later 24 months later 18 months later Sales target 2,500 units Sales target 3,000 units Sales target 1,500 units Second year profit For up to 5,001 units - payment of 3,000 yen sales commission From 5,002 units - principal investment 20,000 yen + 3,000 yen sales commission (2,701 units x 3,000 yen) +(5,001 units x 23,000 yen) + 13.501,500 yen = 136,627,500 yen (Total 146,632,500 yen) Third year onwards (maintenance commission) 13,501,500 yen(Total 160,134,000 yen) Second year maintenance commission Unit sales x two x 90% repeat rate x 1,500 yen+last  year’s  commission = 7,702 units x 90% x 1,500 yen+3,105,000 yen = 13,501,500 yen (10,002 units x 90% x 1,500 yen) This will continue to be paid for as long as the water purifier is used. 2,500 units x 23,000 yen = 57,500,000 yen Remaining 1,702 units x 23,000 yen = 39,146,000 yen 1,500 units x 3,000 yen = 4,500,000 yen Next 799 of 5,000 units x 23,000 yen = 18,377,000 yen Remaining 1,201 units x 3,000 yen = 3,603,000 yen In the case of 5,001 units
  • 36. Implementation Plan Please be aware that after initial purchasing payment, it takes approximately three months to have the products made. During that time we will establish a company in India, in order to proceed from the India-side. We also expect about a 3 month timeframe to have everything organised. (The company formation process in India takes time, as it is in joint cooperation with JICA.) These preparations are essential and we expect them to take approximately 6 months to make full adjustment. Due to this 6-month preparation time, sales are expected to start after 7 months. From these promotions, we are expecting powerful and quick-impact publicity, resulting in good sales results. However, we have only set a sales goal of at least 1,000 units within the first year of business. Be aware that payment of sales commissions (3,000 yen/unit) will be performed quarterly. (Simultaneously, we will commence sales in Japan following the 11th March 2011 disaster to assist people here, too.) Rather than sending monthly/quarterly sales reports to each investor, in order for you to always know the status of your invested capital, all units are numbered and we have developed a software program that keeps up-to-date statistics on units sold. We will send you all web site log-in information, so you can browse at ease. Selling overseas with the purpose of changing the water system process and water cleanliness for the whole of India (and other third- world countries) is our goal. This is a long and dedicated and very worthwhile project that requires a lifetime commitment by all – we hope you are in this with us. -35-