Shuttleworth Business Systems’ experiences in the Indian Market

Formed 1981 Market leaders in MIS for the Printing Industry £4,000,000 turnover (2006) UK market is mature Consolidation amongst MIS suppliers Shuttleworth acquired 3 companies in last 5 years Clients in South Africa, Kenya, UAE, Sri Lanka All managed from UK Agent in Ireland Other European distributors Poor experiences Formed 1981 Market leaders in MIS for the Printing Industry £4,000,000 turnover (2006) UK market is mature Consolidation amongst MIS suppliers Shuttleworth acquired 3 companies in last 5 years Clients in South Africa, Kenya, UAE, Sri Lanka All managed from UK Agent in Ireland Other European distributors Poor experiences

DRUPA nd highest number of visitors to the Shuttleworth booth Curious Investigate DTI assistance Stroke of luck Market Research DRUPA nd highest number of visitors to the Shuttleworth booth Curious Investigate DTI assistance Stroke of luck Market Research Why India?

Market Research British Consul undertook study of Indian Market Gave us the confidence to investigate personally British Consul arranged meetings with Indian Printing Companies September 2004 Seminar arranged in Bangalore Led to meeting with printer following day Report for Shuttleworth Board and DTI Decision to look for Distributor Logistics of dealing with India determined need for Distributor Couldn’t handle directly Search for Indian Distributor British Consul undertook study of Indian Market Gave us the confidence to investigate personally British Consul arranged meetings with Indian Printing Companies September 2004 Seminar arranged in Bangalore Led to meeting with printer following day Report for Shuttleworth Board and DTI Decision to look for Distributor Logistics of dealing with India determined need for Distributor Couldn’t handle directly Search for Indian Distributor

Distributor choice 3 options 1 Delhi based 2 Bangalore Based Chose Infosense Technologies November 2004 Why? Closest fit to Shuttleworth Business built around support Dynamic CEO Prepared to build a team for Shuttleworth project British owner Trust! 3 options 1 Delhi based 2 Bangalore Based Chose Infosense Technologies November 2004 Why? Closest fit to Shuttleworth Business built around support Dynamic CEO Prepared to build a team for Shuttleworth project British owner Trust!

More market research Series of Seminars with Infosense in March 2005 Both parties needed to be sure! Agreed strategy for partnership Signed agreement May 2005 India Recruitment started 3 x Indian staff in UK for training July 2005 Sales, Implementation and Support staff UK team of 3 Launched Shuttleworth/Infosense at Exhibition in Bangalore September 2005 Series of Seminars with Infosense in March 2005 Both parties needed to be sure! Agreed strategy for partnership Signed agreement May 2005 India Recruitment started 3 x Indian staff in UK for training July 2005 Sales, Implementation and Support staff UK team of 3 Launched Shuttleworth/Infosense at Exhibition in Bangalore September 2005

Indian Market Summary 135,000 printers UK Market 7, ,000,000 middle class Drive demand for print Massive overseas inward investment Drive demand for print 30% Growth p.a. in packaging sector 15% Growth p.a. in commercial printing sector Need systems to control costs 135,000 printers UK Market 7, ,000,000 middle class Drive demand for print Massive overseas inward investment Drive demand for print 30% Growth p.a. in packaging sector 15% Growth p.a. in commercial printing sector Need systems to control costs

Results to date 3 systems sold in first 3 months Implementation challenge! 4th system Mid th system March 2007 Recent visit met with half of country’s top 20 printers Moving towards orders from many of them Projected £100,000 p.a. on bottom line by end systems sold in first 3 months Implementation challenge! 4th system Mid th system March 2007 Recent visit met with half of country’s top 20 printers Moving towards orders from many of them Projected £100,000 p.a. on bottom line by end 2008

Barriers faced in India Software Coping with Indian Tax laws Integration into India’s leading Accounts system Market Pioneer Educating market Obsession with price People Problem the world over Some can be trusted, some can’t This applied to both teams – UK and India Software Coping with Indian Tax laws Integration into India’s leading Accounts system Market Pioneer Educating market Obsession with price People Problem the world over Some can be trusted, some can’t This applied to both teams – UK and India

Positives about India People Warm, welcoming and friendly Genuinely a pleasure to visit English is the language of business No local competing products Yet! Massive potential market Be prepared to ride the wave People Warm, welcoming and friendly Genuinely a pleasure to visit English is the language of business No local competing products Yet! Massive potential market Be prepared to ride the wave

If I could do it all again, what would I do differently? No changes to Market Research Get the maximum financial help from UK Government No changes to our Distributor Had a more mature UK team structure Great opportunity Use experienced staff Investigated Taxation issues earlier Driven them harder from the UK during 2 nd 12 months 4 month gap during autumn 2006 No changes to Market Research Get the maximum financial help from UK Government No changes to our Distributor Had a more mature UK team structure Great opportunity Use experienced staff Investigated Taxation issues earlier Driven them harder from the UK during 2 nd 12 months 4 month gap during autumn 2006

Conclusion The market is developing quickly Be thorough in the Market Research Revenues developed there will replace lost business in the mature UK market Be prepared for hard physical work Work with people you can trust Be positive about your product and your skills It will succeed The market is developing quickly Be thorough in the Market Research Revenues developed there will replace lost business in the mature UK market Be prepared for hard physical work Work with people you can trust Be positive about your product and your skills It will succeed