141 A Great Western Building Medows Street Ext Fort

141/A Great Western Building, Medows Street Ext Fort, Mumbai-400023 Website: www. e 14 tech. in e-Mail: info@e 14 tech. in Phone: +91 -9820 315 314 Fax: +91 -22 -22831652 Authoriz. ID Anti-counterfeit Proactive System in technical collaboration with Techno-Sciences Inc, USA info@e 14 tech. in Proprietary Information

Counterfeiting On The Rise Fake goods sales has been estimated to rise by 20% YOY In India counterfeit sales are projected to reach Rs. 55, 000 cr by 2013 FMCG Sector - maximum losses of up to 45% with an average loss of 25% market share Pharma - 12 -25% of medicines made in India are estimated to be fake Globally fake drug industry totals to $90 billion info@e 14 tech. in Proprietary Information

Duplicates & Deceptions Existing Counterfeited products: 128 ‘known versions’ of Parachute hair Oil 113 versions of Fair & Lovely Creams 44 copies of Vicks Vapo. Rub 38 versions of Clinic Plus Shampoos info@e 14 tech. in Proprietary Information

Counterfeiting Effects Loss in Market Share Companies are losing market share to counterfeit products every passing day Harming the Users Due to sub-standard quality; consumers commonly suffer health complications or in extreme cases it has caused loss of lives Brand Reputation Bad consumer experience on using duplicates; affects brand reputation and can cause serious loss of hard-earned consumer confidence to the company info@e 14 tech. in Proprietary Information

Counterfeiting Costs Fair & Lovely Parachute Hair Oil Vicks Vapo. Rub Abbott India Estimated Annual Sales Rs. 1675 cr Rs. 500 cr Rs. 380 cr Rs. 11, 700 cr Estimated loss in revenues Rs. 400 cr Rs. 120 cr Possible Revenue Gain (Just 10% counterfeiting prevention) Rs. 40 cr Rs. 12 cr Products Ø Rs. 100 cr Rs. 10 cr Trying to fight counterfeiting for the past few years, Pharma & FMCG companies have now assigned budgets to setup dedicated teams Ø With limited resources, the limiting factor still remains information about location and type of duplication info@e 14 tech. in Proprietary Information

Current Solutions - Holograms Common belief exists that holograms cannot be counterfeited Several straightforward and inexpensive ways exist to copy holograms Costs Cost of well designed holograms can range from 5 p to 20 p per print Companies often need to introduce changes in their designs to stay ahead of counterfeiters which attracts more fixed costs Adds another process to the packaging line Lack of infrastructure to verify authenticity of a hologram info@e 14 tech. in Proprietary Information

Current Solutions – Design Renewals Companies sometimes change logos and packaging designs to give a fresh look to an existing product More often that, companies make minor changes to product packaging to stay ahead of counterfeiters Costs Huge costs are involved – designing costs, new machinery, clearing old inventory Distributors regularly need to be kept informed about new changes, which can prove difficult in a country like India with remote towns and villages info@e 14 tech. in Proprietary Information

Current Solutions - Barcodes are increasingly becoming mandatory by government agencies, but they still lack any authentication or verification use Recently introduced 2 D barcodes provide good logistical fidelity Barcodes still largely remain tools to increase efficiency and tracking capability Barcodes are the easiest to counterfeit since even the most basic printers now have inbuilt barcode printing capability Small distributors and retailers lack the infrastructure to authenticate barcodes info@e 14 tech. in Proprietary Information

Authoriz. ID – anti-counterfeit proactive system AID system empower end consumers with an easy way to verify authenticity of his/her product anytime from anywhere Along with the manufacturing date and M. R. P. a unique AID numerical code is printed on each item Consumers can simply verify the authenticity of a product by sending a SMS If a code is found to be a fake, customer is informed not to use the product and customer info is sent right away to the company info@e 14 tech. in Proprietary Information

Authoriz. ID – Features Almost impossible to create a fake AID code – 1 in 10 Trillion codes 100% accuracy guaranteed Unlike holograms doesn’t involve any additional steps during packaging In most cases system is deployed with no running or overhead costs Manufacturers will automatically receive detailed reports about any counterfeit product detected Saves additional cost of holograms and complicated ink designs which have to be constantly changed to avoid copying info@e 14 tech. in Proprietary Information

Authoriz. ID – Technology AID servers provide unparalleled security for each and every product manufactured A Centralized Database System (CDS) and Automated Response Engine (ARE) together create a low maintenance authorization service Will be compatible with GS 1 product serialization for Pharma sector §An encrypted database file is provided to the manufacturer with AID codes for every batch §This file is then loaded onto AID printer which prints Encrypted AID Printing Centralized Database System (CDS) Automated Response Engine (ARE) an unique AID code on each strip/packet info@e 14 tech. in Proprietary Information

Company Info E 14 Technologies Pvt. Ltd. has a primary goal to develop new and exciting products for rapidly developing markets, particularly India. Our aim is to develop products that combine state of the art technology, simplicity of design, function and have a mass appeal. Core Businesses: Product Verification Systems Pharmaceutical Inspection & Automation Systems Healthcare Technology tie-up with Techno-Sciences Inc – Rn. D company based in USA in business for more than 35 years info@e 14 tech. in Proprietary Information

Conclusion Authoriz. ID – anti-counterfeit proactive system ü Provides consumer protection against counterfeits ü Helps catch counterfeiters ü Boost sales and regain market share Market Edge Product differentiation Brand owners can enhance the safety and well-being of consumers while regaining market value and increasing sales Maximize efficiency of product distribution channel by using detailed feedback info@e 14 tech. in Proprietary Information