Market competetion, product and price positioning

1. Inulite
Inulite Product, Price & Positioning FY-19
Inulite Nutraceuticals Private limited

2. Inulite
❖ Agenda
❖ GBM March-17-2019 MOM Recap : Vikas Rana
❖ Sales & Marketing Update : Vishal Rana
❖ Project Status & Financial Updates
❖ Funding Required : Ways and Means
❖ Pending Payments
❖ Operational Readiness – Amitava Pathak
❖ Discussion points

3. Inulite
Inulite
InuFit – Granulated Inulin Powder

4. Inulite
Inulin - India Market Size & Growth : Apr - 2012 to Feb-2019
261 268
291 288
180
292
583
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Inulin Imports
** Source : www.commerce.gov.in
Imports doubled in FY18-19
Lowest Year
Avg. 6 Years imports : 264 MT

5. Inulite
Inulin Market Share : Competition – 2012 - 2016
Total, 337205
Total, 81600
Total, 615480
0
100000
200000
300000
400000
500000
600000
700000
Total
Beneo
Coscura
Sensus
Sensus, Netherlands has
dominated the market
Brand : Frutafit
Importer : DKSH
Followed by Beneo,
Germany
Brand : Orafti
Importer: SFA Foods
Coscura, Belgium was late
entrant but gained market
share quickly
Brand: Fibruline
Importer : K P Manish
** Data after 2016 not available in public domain (may have inaccuracies), * 2018 -19 to be purchased
Total
Quantity
2012-2016

6. Inulite
India Product variants – Inulin : Sensus, Beneo, Coscura
ORAFTI GR, 211.20
ORAFTI P95, 285.50
ORAFTI ST GEL, 235.95
FRUTAFIT HD ZK 20KG
(DIETARY FIBER), 181.49
FIBRULINE INSTANT -
INULIN, 160.00
FIBRULOSE F97 -
OLIGOFRUCTOSE, 217.67
0
50
100
150
200
250
300
FIBRULINE
INSTANT - INULIN
FIBRULOSE F97 -
OLIGOFRUCTOSE
FRUTAFIT HD ZK
20KG (DIETARY
FIBER)
ORAFTI GR ORAFTI P95 ORAFTI ST GEL
Beneo
Sensus
Coscura
Form Purity Sweetness Solubility DP
Powder >=90% 10% >=100g/l ~10
Form Purity Sweetness Solubility DP
Powder >=95% 10% 35% <=20
Form Purity Sweetness Solubility DP
Powder >=90% 10% Medium ~10
Form Purity Sweetness Solubility DP
Powder ~92% 10% >=10
Form Purity Sweetness Solubility DP
Powder ~95% 0% >=23
Form Purity Sweetness Solubility DP
Powder ~92% 10% Instant >=10
Avg.
Import
Price

7. Inulite
Inulin Pricing Structure - Import Product
Import cost drivers
Avg.
Import Price
Basic Duty
30%
Cess
3%
Shipping
+ Insurance 5% Landed Cost Selling Price
Importer
Margin %
170 51 5.1 8.5 234.6 350 33%
** Data reference – 2018-19 -> Beneo

8. Inulite
InuFit Inulin : Product Range
InuFit
–
Inulin
Product
Range
InuFit HP – High Performance
Purity : >=95%, Sweetness: NA, DP ~40, Solubility >= 50°C
InuFit SD – Standard
Purity : >=92%, Sweetness: 10%, DP ~25, Solubility – Room Temp
InuFit HS – High Solubility
Purity : >=88%, Sweetness: 25%, DP ~10, Solubility – Room Temp
InuFit IN – Instant
Purity : >=85%, Sweetness: 35%, DP ~15, Solubility – High
InuFit LQ – Liquid Inulin
Purity : >=90%, Sweetness: 20%, DP ~20, Solubility – NA
Closest to Existing Import
Products
Sweeter Variants are costlier

9. Inulite
Inulin 2018-19 : Key Observations / Changes
Coscura & Beneo captured more Market share viz a viz Sensus
Beneo is low balling prices – Direct Customer & Trader SP – 350 INR / kg ++
Trader Selling price – 375 – 475 INR / kg ++
Most of Inulin being sold – 90%+ Purity, 10% sweetness with RT solubility

10. Inulite
Inulite
InuFOS – Fructooligosacchrides

11. Inulite
InuFOS FOS liquid : Product Range
InuFOS
–
Product
Range
InuFOS HP – High Performance
Purity : >=95%, Sweetness: 40%, DP ~2 to 10
InuFOS SD – Standard
Purity : >=80%, Sweetness: 60%, DP ~2 to 10
InuFOS – Instant
Purity : >=55%, Sweetness: 90%, DP ~2 to 10
No Player providing 95% -
High Demand
Closest to competing
products
New Variant – provides
both sweetness & purity

12. Inulite
Inulin 2018-19 : Key Observations / Changes
Only 55% liquid FOS available as of now in the market.
Both Tata & Alkem are struggling to produce 90%-95% FOS in reasonable cost
Alkem low balled prices – Tata was selling @210 INR/KG, Alkem @150 INR/KG : 55%, liquid
FOS 95% has considerable market – Total FOS market is around 2500 MT (55%+95%)
No player in the market providing 95% FOS, Alkem has invested on a new plant to produce 95%
Tata signed JV with Brenntag to supply FOS to USA on 10-Mar-19

13. Inulite
Product Inufit HP
Inulite
Margin %
InuFit SD
Inulite
Margin %
InuFit HS
Inulite
Margin %
InuFit IN
Inulite
Margin %
InuFit LQ
Inulite
Margin %
MRP 500 48% 475 45% 525 50% 550 53% 525 50%
SP - Direct 350 26% 340 24% 375 31% 400 35% 375 31%
SP-Trader 340 24% 325 20% 350 26% 360 28% 350 26%
SP-Distributor 305 15% 290 10% 315 17% 325 20% 315 17%
Inulite Product Positioning & Pricing - Inulin
Closest to Existing Import Products
• Production Cost baselined @ 260 INR per KG for all variants
• All margin calculations inclusive of offset of By product - Inumore

14. Inulite
Inulite Product Positioning & Pricing – Inulin Cont….
• Distributor Margin remains a challenge
• Competition pricing baselined on Beneo
Product Trader Distributor Competition SP
Inufit HP 340 305 NA
Market SP 435 340 350/365-480
Margin % 22% 10%
InuFit SD 325 290
Market SP 415 325 350/365-480
Margin % 22% 11%
InuFit HS 350 315
Market SP 450 350 425/ 450-480
Margin % 22% 10%
InuFit IN 360 325
Market SP 460 360 425/ 450-480
Margin % 22% 10%
InuFit LQ 350 315
Market SP 450 350 NA
Margin % 22% 10%

15. Inulite
Inulite : Product Packaging - InuFit
1 KG
5 KG
10 KG

16. Inulite
Inulite Product Positioning & Pricing – FOS liquid
• Production Cost baselined @ 140 INR/Litre for 95% & 115 INR/Litre for 55%
• All margin calculations inclusive of offset of By product - Inumore
Product InuFOS HP - 95%
Inulite
Margin %
InuFOS SD - 80%
Inulite
Margin
%
InuFOS IN - 55%
Inulite
Margin %
MRP 450 69% 400 65% 250 54%
SP - Direct 350 60% 300 53% 150 23%
SP-Trader 300 53% 285 51% 145 21%
SP-Distributor 245 43% 200 30% 125 8%
Closest to Existing Products

17. Inulite
Inulite Product Positioning & Pricing – FOS Liquid Cont….
• Healthy demand for 95% FOS liquid
• Healthy margins for Distributors as well
Product SP-Trader SP-Distributor
Inufit HP 350 245
Market SP 390 350
Margin % 10% 30%
InuFit SD 285 200
Market SP 315 285
Margin % 10% 30%
InuFit IN 145 125
Market SP 165 145
Margin % 12% 14%

18. Inulite
Inulite : Product Packaging - InuFOS
5 Litre

19. Inulite
Inulite Sales Strategy
Focus on Direct Sales
Carpet Bombing: Flood traders with
material directly - Inulin
Right Product Mix : Ensure Distributor
Margins - Inulin & FOS
Launch High Margin Products ASAP
Distributor commit of 5MT Inulin & 3 MT FOS 95%
pick up - MoM agreed during visit

20. Inulite
Marketing Update
New Website Launched – Corrections & Upgrade : WIP
Brochure Content prepared for Inulin & FOS – Submitted for Designing
Google Ads running for FOS for dip stick survey, FB post boosted - Both Paid
Events visited since last year – FI India, IIDE – Dairy, Bakery Expo India
2 Distributors actively involved – Alliance & BMG - Mumbai
New verticals explored – Poultry – Inulin & Anti Diabetic – 95% FOS
2 more events planned to be visited – VeganExpo – Delhi & Dairy in Karnal
Awareness campaign on Qoura & Other social platforms to be pushed in next phase

21. Inulite
Other Updates & Highlights
Chicory purchase closed for the year @23.50 base price, <12% moisture, Fines<3%.
Agreement Signed
Landed cost of chicory approx. 25.50 , has impacted final product cost
Mumbai Distributor visit completed on 30-May-19
Critical to bring down the cost of product in long term
Having storage can bring down cost of chicory – Bulk Buy
Provide samples asap sales & scale up production within 3 months to 70%-80%

22. Inulite
Human Capital
- Staffing Plan
- Job Description
- Selection
Process
- Recruitment
- Onboarding
- HR Processes
- Attendance
- Leave
- Salary
Operations
- Standard
Operating
Procedure,
- Safety
instructions,
- Do's and
Don’ts,
- Production
recording
- Downtime
Maintenance
- Maintenance
plan
- Scheduled
maintenance
- Maint Processes
- Health check
- Downtime
Regulatory
- Fire Safety
- Hygiene
- Audits
- Records
* Business
Continuity
- Disaster
Recovery
- Business
Continuity
Sales
- Pricing
- Sales Strategy
- Marketing
Preparing for Production
Management Processes
- Management Reporting
- Measures
- Management Reviews

23. Inulite
Thanks