Team:ITESM-Guadalajara/Financial

FINANCIAL DATA

Phase 1: Medium & Low Phase

We will refer to this first phase as the First Generation. The aims of the first phase are to warrantee and standardize the production of medium-low Chitosan. The specific objectives we will be looking forward to attain are:

• Complete an experimentation phase of 6 months in which production will be tested in order to assure the quality characteristics of our product.
• Create customer awareness of our company among medium-low Chitosan consumers because they are a larger market in Mexico than is the high purity market. They buy in higher quantities and their operations often require low purity Chitosan. We will use this phase as well to implement, execute, evaluate and standardize our sales plan through our online store.
• Create a fund that will finance phase 2: High Purity Phase.

This first phase will be the basis of Phase 2: High Purity Chitosan. During Phase 1 we will be able to identify technical issues in the production process in order to assure efficiency and effectiveness. This is a key aspect in elaborating the design of the High Purity Plant (a second Chitosan plant), which will require an extra purification process and to perform a double deacetylation.

Phase 1 will require an initial investment of $2,072,672.92 in equipment, patents, online domain, sales system and certificates, which cost is going to be financed by government programs (Technological Innovation Fund, Innovation Initiative Development and Fojal´s Productive Projects) and capital stock. Investment items distribution is shown below. Moreover, first 6 months of operations will as well be financed by an initial cash fund of $858,600 MXN in case sales projections cannot be reached.

Initial Investment Phase 1