Morison (UAE) Consulting

Group Entity of Morison Menon Group Purpose of the report    To serve as a guidance document for future budgeting and operational planning To serve as a reference document to attract funding / investors for the Project To serve as a document for submission to for regulatory approvals , if required

Scope & Methodology Phase 1: Market Study (specific focus on product and industry concerned)
Overall Objective of the Market Study
y y y y

Obtain a macro understanding of the market environment in the Concerned Industry Determine the overall revenue potential in each of the specified market Establish the competition landscape within various market segments

Module 1 Industry Structuring and Market Environment

y y

Macro profiling of relevant industries based on the product applications Industry Structuring o Identification of key players & influencers within the Industry, with specific reference to products concerned. o Mapping the transaction flow for customer acquisition and servicing

y y

Specifics on product characteristics, requirements and expectations within the Industry Major customers, average contract sizes and resultant revenue potential

Module 2 Competitor Landscape Competitor Analysis shall comprise of the following

y y

Identification of the main competitors Analysis of the main competitors based on the following: o o o o o Background and trackrecord Product range Manufacturing / processing capabilities Target segments & major customers Operating model and USPs

Page 1 of 4

203, Tower-A, Gulf Towers, Oud Metha, P. O. Box 55535, Dubai UAE Tel : +971 4 336 7000 Fax : +971 4 337 2525 E-mail : dubai@morisonuaeconsulting.com

Morison (UAE) Consulting

Group Entity of Morison Menon Group
Methodology The following broad approach steps are proposed as follows: S. No. 1. Activity Product Understanding Description Product understanding shall be obtained through discussions with the management team to understand the product characteristics, applications and uniqueness with respect to their application various industries 2. Industry Structuring & A combination of desk research and focused interviews with key players within the industry shall adopted to obtain necessary information required to achieve the objectives spelt out in Module 1. 3. Competition Landscape Desk research supplemented by interviews with some of the major competitors shall be done adopted to obtain the desired information as spelt out in Module 2 Market Environment

Feasibility Analysis & Preliminary Business Plan Preparation

Overall Objective: To analyse the feasibility of the proposed manufacturing facility and prepare a business plan considering all local conditions, such as legal framework and operational cost factors. Step 1: Operational Model decision Exploring & Evaluation of various available operating models in terms of:
y y

Selling Structure With or without intermediaries Logistics & transportation for both raw materials & finished products, depending on the target customer base

y y y

Location of facility in the UAE legal structure implications and cost paramaters Investment and Operational cost perspective for various options Any other factor, as deemed necessary

Step 2 Review of Technical & Operational information In order to arrive at a financial feasibility decision and analyze the e xpected financial performance we shall compile necessary information from the promoters which shall be reviewed by us for consistency and reasonableness, and therefore, need to be made available by the promoters. This information shall comprise:
y y y y y y y

Production Process Flows Production Capacity Calculations Material Balance Calculations Machinery Details and associated Costs Factory Building and associated Costs (local costs shall be provided by us) Raw materials and associated Costs Consumables & utilities and associated costs (local costs shall be provided by us)

Page 2 of 4

203, Tower-A, Gulf Towers, Oud Metha, P. O. Box 55535, Dubai UAE Tel : +971 4 336 7000 Fax : +971 4 337 2525 E-mail : dubai@morisonuaeconsulting.com

Morison (UAE) Consulting

Group Entity of Morison Menon Group
y y y

Maintenance requirements and associated costs Manpower requirements and associated costs (Local costs shall be provided by us) Other overheads (Local costs shall be provided by us)

Step 3: Preparation of the Financial Model and a business plan The output of the market study and above steps would provide the following information:
y y y

Revenue Projections for the proposed business Capital Expenditure & Investment Requirement Operational costing and overheads

Based on the above information a financial plan for the proposed business shall be prepared which shall include the following:
y y y

Project costing and funding requirements Detailed financial projections for the project Ratio & Sensitivity analysis

Methodology The following broad approach steps are proposed as follows: S. No. 1. Activity Finalizing model the Operating Description The operational model along with the relevant cost implications, as explained above, would be derived through the information obtained through the earlier stages and discussing the proposed operational model with the management team. 2. Compiling Information Technical Technical information would be given by you as mentioned under step 2. Technical information provided by you will be reviewed by us for consistency and reasonableness. Local costs and other parameters shall be supplied by us through our knowledge base and local research. 3. Preparation Projections Financial The revenue projections and operational costing shall be based on the information compiled in the earlier stages. Other expenses and overheads shall be compiled by us based on the operational plan agreed upon and discussed with the promoters before incorporating the same in the financial model

The commercial viability and performance of the project shall be worked out in an iterative mode, till the best Project Fit is obtained.

Page 3 of 4

203, Tower-A, Gulf Towers, Oud Metha, P. O. Box 55535, Dubai UAE Tel : +971 4 336 7000 Fax : +971 4 337 2525 E-mail : dubai@morisonuaeconsulting.com

Morison (UAE) Consulting

Group Entity of Morison Menon Group PRESENTATION The broad outline of the feasibility report would be as below:           Executive Summary Ownership and Legal Structure of the Business Brief about promoters Technical Overview Market Overview Operational Plan Financial projections for 5 years Ratio & Sensitivity analysis Risk Analysis Conclusion & recommendations

TIME SCHEDULE Ranges between 6 weeks to 12 weeks depending on the nature of work

Page 4 of 4

203, Tower-A, Gulf Towers, Oud Metha, P. O. Box 55535, Dubai UAE Tel : +971 4 336 7000 Fax : +971 4 337 2525 E-mail : dubai@morisonuaeconsulting.com