Project Report: (Opthal Solutions Private Limited)

NATIONAL INSTITUTE OF FASHION TECHNOLOGY
PROJECT REPORT
[OPTHAL SOLUTIONS PRIVATE LIMITED]
DATE: 13TH SEPT 2010
Submitted to:- Submitted by:-

Mr. Rajdeva Ayushi Fatehpuria
Roll no-7
DFT-viii
Opthal Solutions Private Limited
By :
Ayushi Fatehpuria
ayushi.fathepuria@gmail.com
Table of Contents
1. Executive Summary......................................................................................5
1.1. Objectives..................................................................................................5
1.2. Mission.......................................................................................................5
1.3. Keys to Success........................................................................................5
2. Company Summary.......................................................................................6
2.1. Company Locations and Facilities.............................................................6
2.2. Start up Summary......................................................................................7
2.3. Company Ownership.................................................................................9
3 Management Summary.................................................................................9
3.1. Organizational Structure.....................................................................10
3.2. Organizational Chart................................................................................11
4 Product.........................................................................................................11
4.1. Product Description.................................................................................12
4.2. Competitive Comparison.........................................................................12
4.3. Sales Literature.......................................................................................13
4.4. Sourcing...................................................................................................13
4.5. Technology..............................................................................................13
4.6. Working....................................................................................................15
5. Market Analysis Summary..........................................................................15
5.1. Market Segmentation..............................................................................16
5.2. Target Market Segment Strategy............................................................17
5.2.1. Market Needs....................................................................................17
5.2.2. Market Trends...................................................................................18
5.2.3. Market Growth..................................................................................18
5.3. Industry Analysis.....................................................................................18
5.3.1. Industry Participants.........................................................................18
5.3.2. Distribution Patterns.........................................................................19
5.3.3. Competition and Buying Patterns.....................................................19
5.3.4. Main Competitors..............................................................................19
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Table of Contents
6. Strategy and Implementation Summary...................................................19

6.1. SWOT Analysis.......................................................................................20
6.1.1. Strengths...........................................................................................20
6.1.2. Weaknesses.....................................................................................20
6.1.3. Opportunities.....................................................................................21
6.1.4. Threats.............................................................................................21
6.2. Competitive Edge....................................................................................21
6.3. Marketing Strategy..................................................................................21
6.3.1. Pricing Strategy.................................................................................22
6.3.2. Distribution Strategy.........................................................................23
6.4. Sales Strategy.........................................................................................23
6.5. Milestones................................................................................................23
7 Management Team.................................................................................24
7.1. Personnel Plan........................................................................................25
7.1. Start-up Funding......................................................................................27
Conclusion............................................................................................................31
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Opthal Solution Pvt Ltd.
1. Executive Summary
Opthal Solution Pvt. Ltd. would have the first-mover advantage of producing Magic
Eye in India which would provide vision to the blind. The concept is to enable the
patients to see from their brains and not from the eyes. The manufacturing plant of
the company would be situated in Pithampur, SEZ, Madhya Pradesh while the
offices for selling the product would be opened in 2 metros after 2 years till 2013.An
investment of Rs 3 crore is required .
1.1. Objectives
 First mover advantage in India, so the company would remain the market
leader. Since the product would be first of its kinds in India, it would be easy
to capitalize on the first mover advantage in the related market segment
which would result into fast return on investment and profit making.
 To maintain 75% market share even post launch of a competitor product.
 To ensure that the product is bought by the target group that falls in A
category ( people who can afford the product with ease) in the first two years
of the launch of the product.
 To expand the market to other market segments from the third year through
providing special schemes, discounts etc without compromising on quality
and double the previous year sales.
1.2. Keys to Success
 Tying up with various funding organizations working for the welfare of visually
challenged people.
 Building relationship with Ophthalmologist for recommendation of innovative

product.
 Building in Social responsibility factor by providing vision to underprivileged

segment of society by networking with NGO's.
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 Constant hammering of product uniqueness and debut in the right segment.
 Building a strong distribution network in the projected cities.
2. Company Summary
Opthal Solutions Private Limited would develop a path breaking technology for
restoring vision of people who could see once but due to any unnatural cause have
become visually impaired. The product called "magic eye" would be one of its kinds
in India, though there are some researches going on in other countries and some
people in US and UK have also been benefitted by it(around 18). The product is
intended to be launched in top 2 metros in 2013 and aims at capturing high business
returns due to absence of competition. The company aims at spreading its foot
prints to all A category cities in first year of its operation. Based on the response and
result of the product, the market would be expanded to additional cities down the
line.
2.1. Company Locations and Facilities
Opthal Solutions Pvt Ltd would be a manufacturing firm, whose unit would be
located in Pithampur (SEZ sector) in the districts of M.P. Pithampur is an
industrial area and one of the leading sectors in the country. For the
manufacturing of the products, the land of around 10,000sq.ft would be
required on a continuous lease of 30 years. The warehouse for the company
would be in the factory itself. Thirty percent of the land could be used for
manufacturing, twenty percent for warehouse and fifty percent could be used
for future expansion. The advantages of the SEZ sector would be: -
 No power cuts i.e. the electricity would be available everyday for 24

hours.
 There would be no requirement of a minimum amount of net foreign
exchange earning as a percentage of exports.
 The company would be exempted from the state and local taxes like
sales and purchase tax, octroi, excise tax, etc.
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 Goods and services for the development process could be acquired

by DTA without the payment of any duties.
The company’s main offices would be situated in Delhi and Mumbai and
there would be different distributors who will be distributing the product in
these two cities.
2.2. Start-up Summary
Opthal Solutions Private Limited start-up costs would amount to Rs.

3,17,82,600 which would cover the lease expenses for opening the
manufacturing firm and rent of two head offices. These costs would
include incorporation of the company, insurance, electricity, design of the
company logo, rent of offices and IT equipment, and other miscellaneous
expenses. The long term start up costs would include manufacturing plant
lease, furniture, deposits, factory shed and machinery. Inventory kept in
hand would be for 2 months that is of 144 units. The start-up costs would be
financed by owner investment, banks.
Long Term assets Amount (Rs.)
Plant 3,000,000
Furniture 1,000,000
Deposits 100,000
Factory Shed 900,000
Machinery 8,000,000
Total 13,000,000
The assumptions are detailed in the following table and illustration.
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START-UP

Requirements

Start-up Expenses
Establishment registration fees Rs.25,000
Insurance Rs.67,600
Lease rent Rs.20,000
Electricity Rs.100,000
Computer and stationaery Rs.100,000
Factory building Rs.300,000

Misc. Rs.50,000
Total Start-up Expenses Rs.662,600

Start-up Assets
Cash Required Rs.500,000
Start-up Inventory Rs.11,520,000
Other Current Assets Rs.6,100,000
Long-term Assets Rs.13,000,000
Total Assets Rs.31,120,000
Total REQUIREMENTS Rs.31,782,600
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2.3. Company Ownership
The company’s selling offices would be incorporated in Bombay and it would

be a private limited company with four partners. Till then, the manufacturing
of the product would be done in Pithampur area.
Partners Percentage of Shares
Ayushi Fatehpuria 20%
Somya Maheswari 20%
Kunal Muchhal 20%
Pratishtha Somani 20%
Rigved Nidai 20%
In view of accidental or natural death of any of the partners in the company, the
partnership share will be reframed.
3. Management Summary
The company would have 5 major players to run it, the CEO, the marketing head,
the sales head, production head and the finance head. All five will have their
equal share in the company that is 20%. Though all are equal but since the CEO
has more and better experience he will be the head and all other departmental
heads will inform him about the work done.It will be a small company with only 12
employees in the production personnel, 5 in sales and marketing personnel, 4 in
general and administrative personnel and 5 employees in research and
development personnel. The company will respect all the co-workers and will
treat them well with an handsome salary.
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3.1. Organizational Structure
The company will have five major players :-
Ms. Ayushi Fatehpuria, will be the CEO of the company and also the head
of R&D department. She will take care of overall business. Also heads of
finance, marketing and sales will report directly to the CEO.
Mr. Kunal Muchhal, the marketing head will be responsible for all the
marketing communications and takes care of where the money should be
spent and how much.
Mr. Rigved Nidai, the production head will take care of the manufacturing
process and the no. of units to be produced.
Ms. Somya Maheshwari, the sales head will be responsible for how can the
sales of the company be increased.
Ms. Pratishtha Somani, the finance head will look after accounts, cash flows,
credit and depth worthiness of the country.
All of these five heads will be the co-owners of the company and will own
20% of shares each.
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3.2. Organizational Chart
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4. Products
Magic Eye would be a unique solution for visually impaired. The product would
not be a replica of a natural eye but could help a person in identifying his
surroundings well. This product may turn out to be revolutionary with further
advancement and refined researches.
So far no such device is available in India. This will not just be a benefit the
company in terms of sales and profit but also to facilitate the handicap that could
not be partially or fully cured.
The product could be used by people who once had a vision but due to some
reason have lost their eyesight and now they could see with their brains through
this Magic Eye.
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4.1. Product Description
The product, an innovation of electronic technology, could be implanted in

the eye behind the retina at the back of the eye ball. An ultra-thin wire would
transmit light and images to the brain's vision system and strengthen the
damaged optical nerve. The product will be named ‘The Magic Eye’ as it is a
miracle for the people who have lost their eyesight in an accident. The
consumer of The Magic Eye will be advised to wear special spectacles which
would contain battery-powered very tiny camera, and also a transmitter,
which would work in sending images to the chip. The chip, enclosed in
titanium casing, making it water-proof and corrosion-proof, and will hopefully
last for at least 10 years inside the eye . Crores of Indians suffer from
blindness caused by age related macular generation. This eye could help
people who are suffering from retinitis pigmentosa (a genetic condition),
but could not be used for patients of glaucoma. The product would weigh
about 700 grams. The product might not give perfect vision to the
customers but will surely give them a sense of their surroundings.
The product Magic Eye, would be of use for especially those people who
have lost their eyesight and not for those who were blind by birth. The
product would fulfill their need of seeing but it will be done through brains.
4.2. Competitive Comparison
- Since this is a first of its kind product in India, there would no competition in
the market. Hence, the company would benefit as a monopoly player.
- Though the product would be expensive and would be priced at Rs 80,000,

the advantage would be that it would be a rust free and reaction free implant
and so people would go out of their way to buy it. The A category patients
would be the first ones to buy the product as money will be little or no
constraint to them.
- Schemes and discounts would be given on bulk purchase by distributors

and may be passed on to the buyer depending upon the volume and
frequency of purchase.
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- Since the product would be placed with leading surgical equipments

distributors and a robust communication of the product would be made at the
opportune segments, the customer would have ease of availability.
4.3. Sales Literature
Brochures of our company would be made which would have a brief account

of our new product 'The Magic Eye'. These brochures would be majorly seen
at ophthalmologists’ clinic, chemist shops and shops related to eye
accessories, magazines etc. A large portion of our budget would be spent on
hoardings in metropolitan cities so that consumer is made aware of the
product. A huge amount would also be spent on Television
advertisements so that mass number of people could be targeted at the
same time.
4.4. Sourcing
The Magic Eye will import most of the machinery and raw materials. Two
second hand machineries would be purchased from Bolton Company
situated in U.K for around Rs.80lacs. First machine will be of Rs.30lacs,
which will be used for making lens for the eye. And the second machine
worth Rs.50lacs will be used for making the structure of eye. A loan of Rs.
80lacs would be taken from two of the local banks, HSBC and HDFC, and
both the machineries would be kept as mortgage in the banks. Other
equipments like camera and transmitter would also be purchased from
Bolton for Rs. 8000 and Rs7000. For the plastic, for making lens and outer
body of the product, a tie up would be done with the Bausch and Lomb
company which would cost around Rs 6000 and 5000 per piece and finally
the chip which is made of titanium would be manufactured in our own
company for Rs. 30,000 per piece. Proper relations would be made with the
suppliers by paying them the amount at the right time.
4.5. Technology
Biology and engineering plays a major innovative role in creating a prosthetic

treatment for blindness. A team of neurologist, retinal surgeons and
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physiologists, retinal anatomist, cortical physiologists, computational

neuroscientist, higher cortical plasticity researchers, microfabrication experts,
materials scientists, microcircuit designers, software engineers and
metallurgist work for a Boston company. This team of experts has come up
with a wireless micro-electronic device which is flexibly ultra-thin. It contains
30,000 transistor stimulator chip which is custom-designed. This device shall
control delivery of electrical pulses to the retina. The advantages of this
device are, firstly, it requires a minimal-invasive surgical method for
implantation. Second, it includes ultra-low power design along with a
geometric design which minimizes the area of hardware that is to be fit into
the surgical eye.
The one goal with which we will move ahead would be to develop an
implantable micro-electronic prosthesis for patients who are blind due to
retinal problems. We have identified a few diseases and will do our best to
treat them which include ‘'age-related macular degeneration'' and ‘'retinitis
pigmentosa''. These are few of the leading causes of blindness in today's
industrialized world. Even with these dilemmas, ample number of nerve cells
remains healthy. These are those cells which connect the eye to the brain.
These healthy cells help in restoring visual rehabilitation with the help of a
prosthesis which will connect to those cells which have visual information
and carry the electrical stimulation to the brain.
This technology of visual prosthesis must get two inputs. First is the
information about the visual signal and second the power for electronics to
work and excite the retina to create corresponding visual image. It is not
practical in long-term implanation to have wires entering the body or
batteries which have a limited lifetime. Therefore it is necessary to direct the
visual signals along with power without wires to the implant. For this wireless
method of communication in our design, we shall use radiofrequency (RF)
transmission.
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Apart from this prosthesis, there will be a camera which will capture a visual
scene and will analyze it in order to convert it into a pattern of electrical
stimulation. The power-data information will be forwarded wirelessly to the
receiving coil placed on the prosthesis. This information drives the
stimulation electrodes. The electrical current passing from these single
electrodes stimulates the cells in the retina that are corresponding to the
features in the visual scene. This process would then allow the person to see
an image through this Magic Eye.
4.6. Working
The working of the Magic Eye will follow a simple procedure. A chip will be
inserted in the eye-ball of the patient and a tiny camera on the outer cover of
the eye. A transmittor will be attached for the camera to capture the image
and transfer it to the chip. The chip will then brighten up like a bulb and the
image will be then reflected on the surface behind the chip from which data
will connect to the brain through the healthy nerve cells in the eye.
5. Market Analysis Summary
Opthal Solutions Pvt Ltd. could see a huge growth in today's fast paced world.
Magic Eye would be focusing on high-technology manufacturers of eye ball. The
target customers will be blind people of higher income group as the product's price
is set high. And also our main target will be high grade hospitals and also well
known Opthal surgeons.
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5.1. Market Segmentation
Marketers could approach the market through market segmentation. It is the

process of splitting targeting customers into different segments. The
segments that are relevant here are demographic, geographic.
1. Income- The cost of the product will be Rs.80,000 which will be higher
than the usual and therefore the target customer people will be higher
income group as they can afford it.
2. City- Our product, the magic eye would be initially available in Delhi and

Mumbai (Maharashtra) as they are metropolitan cities and would fulfill d
target customer category,
3. Country- This product will be launched in India, as the population of

blinds are 3.6 crore which is higher than any other country and therefore
the need of this product is more in India.
Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth
Old age people 12% 130 146 164 184 206
Accidental blind 20% 648 778 934 1,121 1,345
Other 10% 86 95 105 116 128
Total 18.07 864 1,019 1,203 1,421 1,679
%
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Market Analysis (Pie)
Old age people

Accidental blind
Other
5.2. Target Market Segment Strategy
Opthal Solutions would primarily concentrate on its target market, people

who are accidentally blind and are of high income group, good hospitals and
opthal surgeons, as the cost of the product is high. There is a huge
population of 3.6 crore blinds in India. 12% of this population is of high
income group, amongst which the company targets only .02%. Indirect
selling will be done through distributors and retail outlets. In addition to it, a
significant amount of investment will be made in advertising to promote the
product and create product awareness.
5.2.1. Market Needs
Many people were observed blind by birth and by accidents. The proportion
of accident cases are increasing day by day as compared to people who
are blind by birth, therefore the need to make such a product evoked. This
product will be the first to be produced of its kind in India and there is no other
product which can satisfy the need for it.
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5.2.2. Market Trends
We will distinguish ourselves by marketing the product as the product is new,

we will have the first mover advantage so the trends could be set as the way
we want to. Initially the Magic Eye will be only for high income group as the
price is kept high and with no age restrictions. The population of accidental
blind people is most in India and is growing day by day because of the
frequency of accidents increasing. Earlier no such products were developed
here and as technology is increasing at high pace such innovations are
expected. So now the country or rather the world is technology driven and
such innovations are changing trends of the society.
5.2.3. Market Growth
The Opthal Solution Pvt. Ltd. has a total population of 36,000,000 people. Out
of which 12% and above, people are rich that is 4,320,000. If we target only .
02% also, we will target 864 units in a year. We are expecting a growth of
40% increase in sales in the coming 2 years. India needs approximately of
2.5 lacs donated eyes every year from which all the eye banks could only
collect 25,000 eyes and out of which 30% cant be used. Even the eye
surgeries in India have increased from 3% in 1994 to 42% in 2002.
5.3. Industry Analysis
Medical equipments has been a growing industry in past and is still growing
because of technological innovations. The medical industry is constantly
growing at 23.3% every year which increases the growth of the companies.
In the case of Magic Eye, there will be no such competitors in this industry in
India, therefore the market share will be captured by Magic Eye alone which
in turn increases the growth of the industry.
5.3.1. Industry Participants
There will be no participants in the manufacturing equipment for surgical

industry in India which will produce the same product as The Opthal Solutions
Pvt.Ltd. does. Therefore the company will have its monopoly.
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5.3.2. Distribution Patterns
In the case of our company, there will be one manufacturing unit in Pithampur
and two distributing units which will be in Delhi and Mumbai. It will be a form
of indirect marketing in which the consumers will buy the product from the
distributors. The transportation from the manufacturing unit to the distributors
will be given to Gati.
5.3.3. Competition and Buying Patterns
As the competition is less in this market therefore the customers will be left
with less alternatives. Looking at the disadvantages and advantages of the
eye transplant, customers would prefer Magic Eye instead of transplant.
Some of the features of our product 'The Magic Eye' will be:-Firstly, it will be
less expensive and will take less time as compared to the eye transplants.
Also the structure of eye will be made in such a way that it will suit all kinds of
human bodies.
5.3.4. Main Competitors
As such there will be no other competitor available in the market which will
produce the same kind of product. But still there are eye transplants being
done by the opthal surgeons, which will be the only competitor for the Magic
Eye. The advantage of the eye transplant is that it is perfectly attached in the
eye hole and it looks as if it is the natural eye. And the disadvantages include
time constraint, higher cost, and most importantly the eye fixed may not suit
the body. So there will be no threat to our product as the advantages of our
product will be more as compared to the transplant.
6. Strategy and Implementation Summary
The company's strategy would be to target people who have higher standard
of living and could pay high for such medical issues. These target audiences
will be approached through brouchers, print media and telecommunication.
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More to this, there will be hoardings in metros and special interactive

seminars conducted by well-known eye specialists.
6.1. SWOT Analysis
The SWOT analysis gives the company an opportunity to test the internal
strengths and weaknesses of the company. It also examines the
opportunities which are there for the company and also the threats to the
company.
6.1.1. Strengths
The strength's of the Magic Eye is as follows -
 First Mover Advantage : This product would be first of its kind

in India and would be a unique idea, therefore it is one of the
biggest strength of the Magic eye.
 Location : The location of manufacturing unit of the company
would be in Pithampur (SEZ Sector), which is an industrial area.
This sector has many advantages explained earlier, which
inturn becomes the strength of the company.
 Clear vision of the maket need : The Opthal Solutions Pvt Ltd
knows what it takes to build an eye like the Magic Eye. It knows
the customers, the target market and the technology required to
maintain the quality of the product.
6.1.2. Weaknesses
The company will also have some weaknesses which are as follows -
 High Cost : The cost of the Magic Eye will be high, therefore
only rich people will be able to afford it.
 Low Customer Base : The target market chosen for the Magic
Eye will be very low. The company will only target rich people
and will leave behind the lower and medium income group.
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 Recognition : One of the major drawbacks of the product will

be that, it will not picture out the clear vision of the person
standing in front of you but will give people a sense of their
ambiance.
6.1.3. Opportunities
There will be some opportunities available with company which will be

as follows:-
 Growing Accidental Cases : Growing of accidental blind is a

big problem in today's world, therefore the demand for the
Magic Eye will increase. This can be taken as an opportunity by
the company.
6.1.4. Threats
The only threat to the company will be that – seeing this product and
technology, many people would try and come in the market with
different technology and compromise with the price and quality.
6.2. Competitive Edge
The Magic Eye competitive edge comes from the advantage of being a first
mover and also having relationships with Bolton company. Untill now no
other company has innovated such a product in India and the only other
alternative available is the eye transplant which is costlier and takes time.
Moreover the quality, features, its relationships with other distributors and
transporters and latest technology will also be the reasons which will give the
competitive edge to the Magic Eye.
6.3. Marketing Strategy
The marketing strategy of our company will target its customers by the use

of print media through brochures and technical magazines. Brochures can
be picked up from doctor's clinic, chemist shops and eye accessory
shops. The marketing of the product will also be done by telecommunication
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as mass number of people is targeted. It also plans to put up hoardings in

metropolitan cities and sponsor lectures by famous and renowned eye
specialists so that people get aware of the product. The company will hire an
advertising company to consult. Our product will be a high quality and
expensive product and will be especially for the people who are blind
accidently. It will be a high technology product and will target high income
group. Our marketing strategies will mainly target the needy and give the
right information to right people as the product will be high priced and many
middle income and lower income group won’t be able to afford it. Therefore
we will make it sure that people who can afford it, will know about its
existence and use it.
6.3.1. Pricing Strategy
As the product is a technical innovation and the company believes in

giving the best quality the price will be a little high, about Rs. 80,000.
There will be no other competitors present in the market therefore the
price can be kept the way company wants. Also according to
researches done by researchers it has been proved that people do
connect price with quality, and higher the price; higher is the quality.
The pricing (per unit) has been kept according to the following
expenses -
1.RAW MATERIAL:
CAMERA- Rs.3200
TRANSMITOR- Rs.2000
CHIP(IMPORTED)- Rs.30,000
LENS and PLASTIC FOR OUTER BODY- Rs.4000
2.VARIABLE COST- Rs.16,800
3.FIXED COST(MONTHLY)- Rs.716,833
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6.3.2. Distribution Strategy
Initially the product will be available only in Mumbai and Delhi and no
other places and people who would want to use this product could
collect it from either of the places and get it fit with the help of
specialized and trained doctors. The company will tie-up with GATI for
transporting the product from the manufactured centre to the outlet.
Distribution channel will not be preferred as it will increase the cost.
The product will be made at pithampur and then will be sent to the
outlets in Mumbai and Delhi.
6.4. Sales Strategy
For the sales of the product, the company will use indirect sales strategy.
The product from the manufacturing unit will be transported to the centres in
Mumbai and Delhi and will be sold there. According to the analysis total
number of people targeted who are accidently blind and comes in the
category of upper segment of the income group are 4,320,000. Out of which
in the first year only 864 people will be targeted and the sales growth is
expected to increase by 40% in coming two years and will reach
approximately 1694 units in the year 2010. To increase the sales awareness
among people is necessary and this will be done by advertising of the
product. Future planning is to increase centers in different cities and states in
the coming years when the sales of the product increases. We also plan to
give credit to the customers upto 30 days from the day they have bought it.
6.5. Milestones
The following table shows the important milestones for a start-up business
and their budgets along with the dates and the people incharge. For all the
administrative work, Ayushi Fatehpuria will be responsible, such as
Establishment registration fee which will be of Rs. 25,000 for one year period
from the date of April 4,2011 till April 4,2012. For the rent, a budget of
Rs.6,00,000 and the period is of one year that is April 4,2011 till April 4,2012
is allotted. Lease on land will also come in the section of administration
budget of Rs.3,600 for the time period of April 4,2011 till April 4,2012. R&D
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department will incure expenses of Rs. 50,000 per month. For the marketing
department Mr. Kunal Muchhal wil be responsible and he will look after
promotional activities which will have a budget of Rs. 3,38,400 and the
period will be for one year starting on April 4,2011 till April 4,2012. Marketing
strategies will also be looked by him .The budget for this will be Rs. 1,20,000
and the time period will be April 4,2011 till April 4,2012. Sales
department will be controlled by Ms. Somya Maheshwari and budget for
sales promotion will be Rs. 60,000 and for the production department,
money spent on packaging is Rs. 3,45,600 for the time period of one year
that is April 4,2011 till April 4,2012 under Mr Rigved Nidai. Ms.
Pratishtha Somani will handle the purchase department which will have a
budget of Rs. 2,822,400 and that of the distribution department will be
Rs.434,400.
Milestones

Milestone Start Date End Date Budget Manager Department
Establishment registration fee 7-4-2011 7-4-2012 Rs.25,000 Ayushi F. Administration
Promotional events 7-4-2011 7-4-2012 Rs.338,400 Kunal M. Marketing
Inventory of raw materials 7-4-2011 6-6-2012 Rs.2,822,400 Pratishtha Purchase

S.
Sales promotion 7-4-2011 7-4-2012 Rs.60,000 Somya M. Sales
Marketing stretagies 7-4-2011 7-4-2012 Rs.120,000 Kunal M. Marketing
R & D expenses 7-4-2011 7-5-2012 Rs.50,000 Ayushi F. R&D
Packaging 7-4-2011 7-4-2012 Rs.345,600 Rigved N. Production
Distribution 7-4-2011 7-4-2012 Rs.434,400 Pratishtha Sales

S.
Rent 7-4-2011 7-4-2012 Rs.600,000 Ayushi F. Administration
Lease on land 7-4-2011 7-4-2012 Rs.3,600 Ayushi F. Administration
Total Rs.4,799,400
7. Management Team
The CEO of the company, Opthal Solutions pvt.ltd. will be Ms. Ayushi
Fatehpuria, aged 40. She is also the R&D manager and carries an
24 | P a g e
experience of 20 years in the field of eye. She has worked as the chief
financial officer in Baush & Lomb. She has done her MBA from Syracuse
University. All the heads of each department reports her.
Mr. Kunaldeep Muchhal, aged 35 will be the marketing head and completed
his management degree from the Stanford University . Earlier he was
working as the marketing head in an advertising company and carries an
experience of 15 years.
Ms. Somya Maheshwari, aged 24 will be the incharge of the sales

department. She has completed her MBA from the London School Of
Economics. She had worked as sales and marketing representative in her
father's firm.
Mr. Rigved Nidai, aged 37 will be incharge of production department. He has
completed his MBBS from Gauhati University in 1991. He did his post
graduation in ophthalmology from Sankara Nethralaya,(Chennai) followed by
Cornea fellowship at the same institute. He was a fellow of the royal college
of surgeons of Edinburgh (UK). He also completed his Master of Medicine
(Ophthalmology) degree from the National University of Singapore
Ms. Pratishtha Somani, aged 27 will be the finance head of the company
and has done her MBA degree from IIM-Ahemdabad in finance. She has
worked as a software engineer for three years before doing her post
graduation.
7.1. Personnel Plan
The personnel plan is divided into four parts-
1. Production personnel- The employees in this section will be 12 and the

average per person will be Rs. 60,000 in the year of 2011. In year 2012 the
number of employees will increase to 15 but the average remains same. The
average per person each month will be Rs. 5000.
2. Sales and Marketing personnel- The employees in this section in the

year of 2011 will be 5 and the average per person will be Rs. 84,000. In the
25 | P a g e
next year the number of employees and the average per person both remain
same.The average per person in each month will be Rs. 7000.
3. General and Administrative personnel- The employees in this section

will be just 4 with the average per person of Rs. 72,000 in 2011. In 2012, the
employees work will 6 and the average per person will be the same The
average per person of each month will be Rs. 6000.
4. Research and Development personnel-The employees in this section

will be 5 and the average per person Rs. 2,40,000 in the year of 2011. The
number of employees might be increased to 6 but the average per person
will remain same in the next year.The average per person of individuals each
month will be Rs. 20,000.
26 | P a g e
Personnel 2011 2012

Production Personnel
People 12 15
Average per Person Rs.60,000 Rs.60,000
Subtotal Rs.720,000 Rs.900,000

Sales and Marketing Personnel
People 5 5

General and Adminstrative
Personnel
People 4 6

Research and Development
Personnel
People 5 6
Subtotal Rs.1,200,000 Rs.1,440,000

Total People 26 32

Total Payroll Expenditures Rs.2,628,000 Rs.3,192,000
7.2. Start-up Funding
Opthal Solutions Pvt. Ltd. has start-up expense of Rs.6,62,600 and start-up

assets worth Rs.3,11,20,000. The start-up cost will be funded by different
sources such as banks, Angle investors, partners, other family members and
friends. Long-term liablity (funding) which is Rs.8,000,000 will be taken from
bank at an interest rate of 12% for which mortgage will be given in the form
of machinery. Other interest-free liabilities are of Rs.1,782,600 which will be
taken from family members, friends. All the 5 partners will invest
Rs.3,000,000 each into the company to fund the start-up cost. For rest of the
amount of Rs.10,000,000 investment will be seeked from Angle
investors. On this investment, company will provide him with some stake in
the company which will be decided later on.
27 | P a g e
Start-up Funding
Start-up Expenses to Fund Rs.662,600
Start-up Assets to Fund Rs.31,120,000
Total Funding Required Rs.31,782,600

Assets
Non-cash Assets from Start-up Rs.30,620,000
Cash Requirements from Start-up Rs.500,000
Additional Cash Raised Rs.0
Cash Balance on Starting Date Rs.500,000
Total Assets Rs.31,120,000

Liabilities and Capital

Liabilities
Long-term Liabilities Rs.8,000,000
Accounts Payable (Outstanding Rs.0
Bills)
Other Current Liabilities (interest- Rs.1,782,600
free)
Total Liabilities Rs.9,782,600

Capital

Planned Investment
Ayushi Fatehpuria Rs.3,000,000
Rigved Nidai Rs.3,000,000
Kunal Muchhal Rs.3,000,000
Somya Maheswari Rs.3,000,000
Prathista Somani Rs.3,000,000
Angle Investor Rs.10,000,000
Total Planned Investment Rs.25,000,000

Loss at Start-up (Start-up (Rs.662,600)
Expenses)
Total Capital Rs.21,337,400

Total Capital and Liabilities Rs.31,120,000

Total Funding Rs.31,782,600
28 | P a g e
29 | P a g e
CONCLUSION:-
So, I think my product ‘Magic Eye’ would be a successful one and all the data
needed have been put here. I look forward for a positive response for my report.
Suggestions are welcomed.
30 | P a g e
END
31 | P a g e

Project Report: (Opthal Solutions Private Limited)

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Project Report: (Opthal Solutions Private Limited)

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NATIONAL INSTITUTE OF FASHION TECHNOLOGY

Submitted to:- Submitted by:-

6. Strategy and Implementation Summary...................................................19

 To maintain 75% market share even post launch of a competitor product.

1.2. Keys to Success

 Building relationship with Ophthalmologist for recommendation of innovative

 Building in Social responsibility factor by providing vision to underprivileged

 Constant hammering of product uniqueness and debut in the right segment.

 Building a strong distribution network in the projected cities.

2.1. Company Locations and Facilities

 No power cuts i.e. the electricity would be available everyday for 24

 Goods and services for the development process could be acquired

2.2. Start-up Summary

Opthal Solutions Private Limited start-up costs would amount to Rs.

Long Term assets Amount (Rs.)

Factory Shed 900,000

The assumptions are detailed in the following table and illustration.

Factory building Rs.300,000

Total REQUIREMENTS Rs.31,782,600

2.3. Company Ownership

The company’s selling offices would be incorporated in Bombay and it would

Partners Percentage of Shares

Ayushi Fatehpuria 20%

Somya Maheswari 20%

Kunal Muchhal 20%

Pratishtha Somani 20%

Rigved Nidai 20%

3.1. Organizational Structure

The company will have five major players :-

3.2. Organizational Chart

4.1. Product Description

The product, an innovation of electronic technology, could be implanted in

4.2. Competitive Comparison

- Though the product would be expensive and would be priced at Rs 80,000,

- Schemes and discounts would be given on bulk purchase by distributors

- Since the product would be placed with leading surgical equipments

4.3. Sales Literature

Brochures of our company would be made which would have a brief account

Biology and engineering plays a major innovative role in creating a prosthetic

physiologists, retinal anatomist, cortical physiologists, computational

5. Market Analysis Summary

5.1. Market Segmentation

Marketers could approach the market through market segmentation. It is the

2. City- Our product, the magic eye would be initially available in Delhi and

3. Country- This product will be launched in India, as the population of

Market Analysis (Pie)

Old age people

5.2. Target Market Segment Strategy

Opthal Solutions would primarily concentrate on its target market, people

5.2.1. Market Needs

5.2.2. Market Trends

We will distinguish ourselves by marketing the product as the product is new,

5.2.3. Market Growth

5.3. Industry Analysis

5.3.1. Industry Participants

There will be no participants in the manufacturing equipment for surgical

5.3.2. Distribution Patterns

5.3.3. Competition and Buying Patterns

5.3.4. Main Competitors

6. Strategy and Implementation Summary

More to this, there will be hoardings in metros and special interactive

6.1. SWOT Analysis

The strength's of the Magic Eye is as follows -