PROPOSED PLAN OF ACTION

Proposed Marketing Set-up:

With a view to promote Leh Berry aggressively in the European Markets, the entry strategy
is prima-facie confined initially to UK mainly and Norway & Germany. The market coverage
will be increased gradually on establishing the brand and gradual introduction of product
variants. Proven network of Distribution comprising of Distributor ably supported by
established Wholesalers and Retailers will be utilized for desired market coverage. The
estimated sales targets are established quite conservatively. More important at this juncture
is to establish the brand on sound platform by creating desired awareness and positive
ambience.

Strategic Implications for Launching Leh Berry in Part of Europe

a. Proposed Marketing Arrangements

Proposed marketing activities will mainly be confined to UK and modestly in Norway and
Germany, controlled & monitored as Stockist by Interlink Marketing (Europe) Ltd. The
desired market coverage will be through active involvement of Distributors; Wholesalers
and Retailers.

b. Competitive scenario

Leh Berry will be promoted as rejuvenating & refreshing family drink, strategically placed
against top of the shelf and established brands Tropicana, Rubicon, Ocean spray and
similar others with the sales prices in range of 1.00 to 1.29 per litre.

c. Targeted Sales Volume

COUNTRIES COUTRY-WISE ORDER (LITRES) COUTRY-WISE ORDER VALUE

2010-11 2011-12 2012-13 2013-14 2010-11 2011-12 2012-13 2013-14

COST/LITRE

Litres Litres Litres Litres

0.38


0.43


0.55


0.55

UK 696,000 1,722,600 2,244,600 2,818,800 264,480 740,718 1,234,530 1,550,340
NORWAY 208,800 417,600 626,400 626,400 79,344 179,568 344,520 344,520
GERMANY 208,800 417,600 626,400 835,200 79,344 179,568 344,520 459,360
TOTAL 1,113,600 2,557,800 3,497,400 4,280,400 423,168 1,099,854 1,923,570 2,354,220

COUNTRIES
COUTRY-WISE SALES FORECAST
(I UMBER OF COTAIERS)
COUTRY-WISE SALES FORECAST
(I MILLIO )

2010-11 2011-12 2012-13 2013-14 2010-11 2011-12 2012-13 2013-14

PRICE/LITRE


UMBER OF COTAIERS/YEAR
(1 COTAIER = 17,400 LITRES)

0.99


1.09


1.29


1.29

UK 40 99 129 162 0.689 1.878 2.896 3.636
NORWAY 12 24 36 36 0.207 0.455 0.808 0.808
GERMANY 12 24 36 48 0.207 30.455 0.808 1.077
TOTAL 64 147 201 246 1.102 2.788 4.512 5.522

d. Target Market Segments

Ethnic Stores and off-Licence shops
F & B Segment Hotels, Restaurants & Pubs
Event Organizers

e. Product Strategy

As a part of product strategy, Leh Berry in one litre in tetra pack will initially be
introduced. This will be strengthened further by introduction of 200 ml smaller packs; 330
ml aluminium in multi unit six cans combo pack and 500 ml bottle.
(Contd........2)
(Page-2)

f. Pricing Strategy

Entry Price 1
st
Year - 0.99 (Purchase order Price
Promotional Price (Second Year) - 1.09
Stability Price (Third Year onwards) - 1.29

To promote aggressively Leh Berry in Europe, against the established brands, at the
prices as indicated above, while offering margins to intermediaries at prevailing norms
besides covering promotional cost, the following purchase price is absolutely inevitable;

REVISED PRICING AT 17.5% VAT (FOR EUROPE ONLY)
Costing Heads As per Rev VAT @ 17.5% Apr.'10 Penetrative Price - April '11 Dave (After attaining Stability)
(Initial First Year- Entry Price) (Second Yr-Promotional Price) (At Stability Price - 3M Lit. Plus)
G.Margin Amount Amount G.Margin Amount Amount G.Margin Amount Amount
Retail Selling Price 0.99 1.09 Price after Stability 1.29
VAT 17.50% 14.89% 0.15 0.147 14.89% 0.16 0.162 14.89% 0.19 0.192
Price Net of VAT 0.84 0.93 1.10

Retailers Margin 25.00% 0.21 0.211 25.00% 0.23 0.232 25.00% 0.27 0.274
Price to Retailer 0.63 0.70 0.82

Wholesaler's Margin 10.00% 0.06 0.063 10.00% 0.07 0.070 10.00% 0.08 0.082
Price to Wholesaler 0.57 0.63 0.74

Distributor's Margin 10.00% 0.06 0.057 10.00% 0.06 0.063 10.00% 0.07 0.074
Net Cost Distributor 0.51 0.56 0.67

Distributor's Cost 10.00% 0.05 0.051 10.00% 0.06 0.056 10.00% 0.07 0.067
Price to Distributor 0.46 0.51 0.60

Business Associate's Cost 4.00% 0.02 0.018 4.00% 0.02 0.020 3.00% 0.02 0.018
Landed Cost Dave 0.44 0.49 0.58

Promotional Contribution 14.00% 0.06 0.062 12.00% 0.06 0.058 6.00% 0.03 0.035
Landed Cost - For Europe 0.38 0.43 0.55

Proposed Landed Cost per Litre works out to be;

Entry Cost 1
st
Year - 0.38 (Incl. of .06 per Litre towards Advertising Cost)
Promotional Price (Second Year) - 0.43
Stability Price (Third Year onwards) - 0.55 per Litre

g. Advertising & Sales Promotion support

UK is prima-facie a conservative market with conspicuous customers. To encourage
positive brand switching, we have create desired awareness & positive attitude towards
the product. Rejuvenating and refreshing family drink from super fruit, a powerhouse of
Vitamins will be the platform.

A budget provision of close to 60,000 during the first year, increasing to 160,000
during the fourth year is envisaged conservatively.

h. Distribution set up

With a view to attain desired market coverage, the system of distribution will be three
stage comprising of Distributor; Wholesaler and Retailer.
(Page-3)
Financial Implications A Brief Overview

1. Business Highlights

DESCRIPTION 2010-11 2011-12 2012-13 2013-14
INCOME INCL.INVESTMENT 61,248 148,144 193,036 242,417
EXPENSES 53,500 111,600 147,600 187,200
GROSS MARGIN 7,748 36,544 45,436 55,217





(Page-4)
DAVE & ASSOCIATES (UK ALONE)
CASHFLOW FORECAST FOR THE YEAR ENDED 31 MARCH 2011 TO MARCH 2014
20010-11 2011-12 2012-13 2013-14

RECEIPTS


Leh Berry - 1 Lit 61,248 148,144 193,036 242,417
Leh Berry - 200 ml 0 0 0 0
Leh Berry - 330 ml & others 0 0 0 0
Initial Investmment 0 0 0 0
TOTAL RECEIPTS 61,248 148,144 193,036 242,417
PAYMENTS
Start-up-Expenses 0 0 0 0
Start-up Inventory 0 0 0 0
Initial Inve..Returned Back 0 0 0 0
Wages & NIC 18,000 36000 48000 72000
Rent incl VAT 0 14400 14400 14400
Business/Water Rates 0 2400 2400 2400
Repairs & Maintenance 0 1800 2400 2400
Computer Expenses 2,500 3000 3000 3000
Promotional Cost 18,000 30000 42000 48000
Advertising 0 0 0 0
commission 0 0 0 0
Insurances 1,200 1200 1800 2400
Light & Heat 600 600 1200 2400
Print'g & Postage 1,200 2400 3000 3000
Motor/Travel X's 7,200 9600 14400 18000
Telephone 2,400 3000 3600 4800
Other Charges 0 0 0 0
Lease Rental - Car 0 4800 7200 9600
Bank Charges 1,200 1200 1800 2400
Bank Interest 0 0 0 0
Loan repayments 0 0 0 0
VAT 0 0 0 0
Sundries 1,200 1200 2400 2400
TOTAL PAYMENTS 53,500 111,600 147,600 187,200
NET FLOW 7,748 36,544 45,436 55,217
BAL B/FWD 0 7,748 44,292 89,727
BAL C/FWD 7,748 44,292 89,727 144,944
PROMOTIONAL EXP. (DISTRIBUTOR) 18,000 30,000 42,000 48,000
PROMOTIONAL EXP. (SEABUCKTHORN INDAGE) 41,760 103,356 89,784 112,752
TOTAL PROMOTIONAL EXPENSES 59,760.00 133,356.00 131,784.00 160,752.00
TOTAL PROMOTIONAL EXPENSES (PER LIT) 0.09 0.08 0.06 0.06

2. Soft Drinks Industry UK

Total soft drinks consumption held up in 2008, despite another wet summer and the
credit crunch. Across all sectors, the market registered a 1% value increase and a
marginal volume decline of 1.1% to stand at 13 billion and 13905 million litres
respectively.

2008 showed that ever more complex consumers are varying their purchasing
choices, weighing-up value, convenience and naturalness alongside refreshment and
enjoyment.

The momentum to reformulate and reduce added sugar in drinks continues
unabated. On the sustainability front, companies are pursuing work to lightweight
packaging, to use increasing amounts of recycled material in packaging and to
reduce their use of energy and water.
(Page-5)

Consumers are loyal to the drinks they know and trust but remain open to innovative
products and brand extensions which meet their ever-evolving needs. The industrys
ability to provide the public with a wide range of enjoyable and affordable drinks will
ensure it remains resilient despite the tough climate.

With the green shoots of economic recovery not expected to push through until late
2009, soft drinks growth is not forecast to return until 2010. However, by 2013 the
market could reach 14890 million litres, with per person consumption hitting 239
litres.

Globally, the 2008 global soft drinks market remained buoyant with volume gains in
the emerging markets of Africa, Middle East, Asia Pacifi c, East Europe and parts of
Latin America. At 13.9 billion litres, the UK ranked 12th globally in terms of overall
soft drinks consumption.

CONSUMPTION PATTERN - UK SOFT DRINKS (IN MILLION LITRES)
Year
Bottled
Water
Carbonates Dilutables
Fruit juice
&
Smotthies
Still &
Juice
Drinks
Total
Consumption
- soft Drinks
% Growth
Soft Drink
Consumption
2002 1760 6240 3050 1025 885 12960
2003 2070 6525 3175 1090 985 13845 6.83%
2004 2060 6195 3125 1130 1090 13600 -1.77%
2005 2150 6065 3100 1215 1190 13720 0.88%
2006 2275 5915 3350 1305 1330 14175 3.32%
2007 2175 5835 3350 1330 1370 14060 -0.81%
2008 2055 5935 3250 1285 1380 13905 -1.10%
Avg. 1.22%
Source: Zenith International, UK

MARKET FORECAST - UK SOFT DRINKS (IN MILLION LITRES)
Year
Bottled
Water
Carbonates Dilutables
Fruit juice
&
Smotthies
Still &
Juice
Drinks
Total
Consumption
- soft Drinks
% Growth
Soft Drink
Consumption
2008 2055 5935 3250 1285 1380 13905 -1.10%
2009 2058 5846 3251 1287 1383 13825 -0.57%
2010 2085 5825 3269 1312 1410 13900 0.54%
2011 2134 5800 3300 1358 1458 14050 1.08%
2012 2246 5792 3370 1462 1570 14440 2.78%
2013 2373 5788 3447 1583 1700 14890 3.12%
Avg. 1.39%
Source: Zenith International, UK