SCOPE OF WORK – BINDER BUSINESS DEVELOPMENT

Please find mentioned below the scope of work of both parties for Binder Business Development work:

Parties Involved:

 Manufacturer of Binder (MNB)

 BD Consultancy Firm (BDC)

Scope of Work of BDC:

 Map all the briquetting plants in Indian steel industry

 Collect data related to the briquetting plants:

i) Rated Capacity
ii) Production Target
iii) Actual Production
iv) Gap in production
v) Reason for the gap
vi) Briquette recipe
vii) Binder % in recipe
viii) Binder used
ix) Cost of binder per ton of briquettes
x) Scope for increasing briquette production etc.,

 Shortlist plants where there is scope for value addition / selling our binder
 Conduct Proof of Concept / Product trials with the byproducts of the shortlisted plants (no point in
simply giving presentations and trying to sell without evidence. Proven performance will help in quick
order placement)
 Find suitability of our binder
 Establish the amount of binder required
 Submit quotation for binder
 If both parties agree, conduct free trial at plant for an agreed quantity of briquettes
 After customer place an order and material reach site, conduct trials with our binder for X days and
establish the amount of binder to be added
 Share feedback to MNB, based on actual performance on site
 MNB to do suitable modifications to the binder chemistry to enhance its performance
 Periodic visits to site where binder is sold to see that it is properly stored, added in correct quantity
and if the recipe is still the same
 If the recipe changes over time or if binder stored improperly, added inaccurately (leading to over
consumption = higher binder cost) there will be scope for customer feeling that the binder is
ineffective or not cost effective and start looking for alternatives, hence scope for losing the
customer.

Scope of Work of MNB:

 Travel and boarding expenses of BDC team (Typically 2 Persons per trip)
 All costs associated with sample packing, transportation, lab testing costs and other Business
Development related expenses
 Contract can be terminated at any stage by MNB after clearing all dues for work / expenditure done
 All subsequent steps after order placement like supply, payment collection etc.,
 No share in profit from sales to BDC
Commercial Points:

 A lump sum amount of Rs 8.0 L to be paid upfront for BDC to take up the assignment, preparing the
Scope of work document, and start sharing more information with MNB and finally submit a Strategy
report to ramp up sales by the end of 3 months.

 Consultancy Fee: Rs 22,000/day (first 10 man days in total), after 10 man days@ Rs 18,000/day, This
will include Site Visits, Site Survey, Tour Report and Free Consultancy report to customer on the
constraints / bottlenecks in their plant to improve their plant / process. (advantage to MNB, due to
our contacts and expertise, need few visits to reach order placement stage. We will not try to prolong
discussions as we have other works to do. Credibility is the key in this niche market for us)

 BDC services for customer / MNB communication (Phone calls, mails, Con calls, complaint handling
etc., additional fee of Rs 3.0 LPM for work done from home.

 Average cost of Rs 10,000/head/day (All Inclusive. Flight, Cabs, Hotel, Food etc.,)

 Total BD Budget to cover Indian market in 3 - 6 months:

o Upfront fee: Rs 8.0 L (A)

o Consultancy Fee (On Site Work): 10 X 2 X 3 x 22,000 = Rs 13.0 L (3 Month) (B)
o Consultancy Fee (Off Site Work): 3 X 2 X 3,00,000 = Rs 18.0 L (3 Month) (C )
o Travelling & Boarding: 10 x 2 x 3 x 10,000 = Rs 6.0 L (D)
o Lab & other BD Expenses: 6 x 3,00,000 = Rs 18.0 L (E)
o TOTAL ESTIMATED COST (F): Rs 63.0 L = Rs 65.0 L (USD 79,000) [A + B + C + D + E]
Note: The cost for each head (A, B, C, D, E) may vary from the above mentioned estimated amount
but the total cost is expected to be around the Estimated Total Cost (E ).