Tetromatic Cozy Products Limitedtetromatic.com/private/Tetromatic-Investor-Doc.pdf · Tetromatic...

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Tetromatic Cozy Products Limited

Information for Investor

How many times do you move around within your chair? How many different sitting postures do people take? How many times do you turn over while sleeping? This is not freedom. It is not style. It is a problem.

Tetromatic (Coimbatore, India) has invented and patented a solution that enables one to sit comfortably without unwanted movements. This new technology is for sofas, office chairs, hospital beds, and vehicle seats. The chair can improve working efficiency by 10% in the office and can eliminate uncomfortable struggles in aircraft seats. The bed will comfort hospitalized patients and prevent bed sores/ulcers for ICU/coma patients.

Investment potential: As per our estimation, the early stage investment has the potential to multiply by many times in 3 to 4 years. We are accepting investments as share capital in the range of $2k to $8k, US, from each investor (or Indian Rupees 1 Lakh to 5 Lakhs). For the investors’ safety, this new company is incorporated as a limited company, so managing and accounting will be maintained transparently and audited by CA as per government regulations (companies act).

The Pain point of the existing system:

Sitting on foam-, spring-, or net-supported seats can give us comfort, but that comfort won’t last over many, long hours.

One has to keep changing sitting postures/positions to relieve the pressure on muscles and skin.

One will keep leaning/moving forward, backward, sideways, then rotating sideways, lifting/stretching/folding the legs, etc., even having to get up to walk around.

When we sit for a long time, the blood flow is blocked at the buttocks and bottoms of thighs. This is painful, and we are forced to switch positions frequently.

Similarly, for hospitalized patients and the elderly, because switching the sleep posture is difficult while sleeping, they develop bed sores/pressure ulcers on their skin.

These problems are addressed by our new technology.

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Please remember to see the movies that show existing problems, and how our chair works.

Manufacturing cost estimates (in US dollars): Type 1: Chair $1,500, Single bed mattress $3,500 Type 2: Chair $600, Single bed mattress $1,500

Business Model: Our module of comforting technology will be given out as modules to all furniture manufactures to use in their own products, thereby reaching out to the whole world without competition.

Market: Technology of this product has a $200 million, US, market potential.

Status of the project: Patent filed in India, US, Japan, Europe, Australia and (International) PCT. Individual component-wise design, development and testing are completed which mitigates the technical risk. The prototype is assembled and being tested. Programming is in progress.

Inventor/Founder: Mechanical Engineering Diploma holder with 12 years’ experience in precision plastic mold designing and manufacturing, followed by 12 years’ experience as a self-employed software developer, having created and sold his own music software products as well as wonderful 3D vehicle animation software for accident reconstruction for a Canadian Company. At age 49, he is a professional in both of these fields (tooling and programming), being intelligent, innovative, flexible and trustworthy.

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Features

Features and benefits of this technology:

Since the pillar movements are controlled by computer, there are endless possibilities. By knowing the force on each pillar, the computer can visualize/plot the posture and shape of the human body and can be programmed to perform wonders.

Provides an ergonomic surface, matching the shape of the resting body parts. Allows as much force/pressure on each area as is suitable for that area of the body,

and varies force depending on the strength of each part. Keeps the injured/weak body part free from pressure. Saves important organs while

sleeping; provides air gap for the nose; no pressure on the eyes; no pressure on the ears or earrings; and more…

Improves blood circulation for the parts of the body that touch the seat/bed while resting. This is done by gradually releasing the force at smaller areas, and, after some time, closing that area and releasing another area.

Solves the fatigue experienced by sitting on a chair or sofa in one posture for long times.

Solves morning body pain, experienced after sleeping for a long time on the bed. Blood circulation is allowed, thus bed sores/pressure ulcers are avoided for non-

moving patients. Pillows can be avoided in bed. The pillars below the head can move up to support

like a pillow, to align the head straight with the body, or slightly upward as needed. Gives the option to switch to lock forward or lock backward posture in the chair.

Lock posture on the bed to keep the body straight or at a desired shape. Changes the surface profile shape in such a way that the human body is

allowed/forced to move to a different posture after a longer time of resting. Keeps a predefined shape ready in advance (before the person arrives) to ensure

that the resting person takes a desired or prescribed posture. Makes the person aware of the time by making specific/predefined movements on

schedule. For example, wake-up call or reminder call movements. Does slow massaging to soothe/refresh the body and improve blood circulation. For

example, before waking up in the morning on the bed, or after lunch in the chair.

Patent Title: SELF ADJUSTING SUPPORT SYSTEM International patent: WO/2012/176159 (Application number PCT/IB2012/053162) USA patent: US 14/124,707 (Yet to get published) Europe patent: (awaiting number) Australia patent: (awaiting number) Japanese patent: (awaiting number) Indian patent: 2131/CHE/2011

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Technical Details

How does the seat of the existing chairs work?

Soft on top of seating surface. Goes down where the pressure is applied. In general it works like a spring. The foam or net also works like multiple springs put together.

So, how does a spring work?

Simple, it gets pressed down as much distance as the force is applied. Comes back once released.

Please note the distance compressed is directly proportional to the force applied.

How does that works on a seat?

See the cross sectional shape of thigh. Assume that the cross sectional shape of thigh is a circle – to see the effect.

See how these springs get compressed when the thigh is rested over them, deforming the round thigh to ellipse. Pressure map is shown with arrow.

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Middle spring gets pressed deeper inducing higher force there pressing middle of the thigh harder. If you carefully observe the sensation at the bottom of your thigh, you can notice a higher pressure on the middle line. This makes you feel uncomfortable quickly. You can feel better if you move your thigh sideways (like rolling) shifting the pressure line. This is one of the discomforts in the present seat.

Secondly the major discomfort is felt when you keep sitting for a long time on one posture. That is because blood flow is partially blocked by the pressure of the seat. To overcome this you will keep changing your sitting posture frequently. In this modern busy life it is taken for granted that changing the posture in a chair is normal, an accepted norm in life. So we don’t realize that it is a problem.

The new concept explained:

Our Invention will support everywhere with equal force with many supporting posts that will move up/down. The body part rested will get minimum deformation on the cross section. The circle of thigh remains a circle.

It is forming the top sitting surface as if a custom profile was created as-and-when the person is seated.

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At first in the “shaping cycle” is formed, all posts those touch the body will move down to make the shape of the seat same as the body shape, and this will exert uniform force all over. It is done by sensing the force felt on each post (with force sensors fitted in each posts) and moving down the post (with a small actuator fitted inside the post).

To improve the comfort further, the posts will fine adjust height of each one to apply different force in each area proportionate to the strength of the respective body area. To do this the whole pressure map is processed and the sitting posture is visualized in the processor by software and the strength of each location is estimated and posts are moved.

Once the shape is matched it will give comfortable sitting. But to keep-up the comfort for longer time we need to go through “Relieving cycle”.

Relieving cycles is relieving a small area from pressure for better blood flow and keep-on switching the relieving area all the time.

How it works?

There is a short spring inside the post that will make the post move down partially when the person sits on it – that gives instant semi-comfort. There is a distance sensor to sense the movement made by the spring to calculate the force excreted on the post. There is a small motor/actuator that is geared to a bolt to vary the height of the post. The sensor and the actuator are connected to a control unit and that control unit is connected wirelessly to Computer (PC / Laptop / TabletPC / Smartphone) to control all the movements as per the

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commands from software program. Instead of a Computer a small independent computer can also be fitted inside the chair.

Market

Arbitrary Market potential estimation:

US Furniture consumption = 10 billion USD/Year World is 5 times of that (10×5) = 50 billion USD Seating = 30%, Assume 1/5 of Seating is Executive Chair/Sofa that is 6% = 3 billion USD Assume we are able to cover 10% of that to use Our technology = 300 million USD/Year Manufacturing cost 2/3 = 200 million USD/Year Our module cost is 2/3 of the product = 133 million US$/Year Add 50% for Mattress, Car seat, hospital seat, airplane seat, and others. 133m x 1.5 = 200 million US$/Year Based on this, we have a market potential of 200m USD that can be reached in 5 years. Initially for the financial plan we are taking a pessimistic number of 10 ~ 15 % of this to reach in 3 years.

Marketing Strategy:

We do not plan to compete with the giants, but will join them instead by providing

technology, design, and modules of our technology which they can then incorporate into

their own products. We will also produce our own, complete products which will, in turn,

help them to see the many possibilities.

Initial Marketing Activities:

A businessman in Italy has reviewed the product, and he said there is a huge potential for

selling the bed in Italy and Germany and he is interested helping in marketing this product

to Europe. He will visit here to see the product later.

We are also in discussion with a furniture company in USA, and CEO of that company is

interested to view the prototype, we will be showing the prototype to him in his next

regular visit to china.

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Financial

Note:

By the end of six months we would have received an investment of US$ 320,000 (Indian Rs 2 crores). By that time we will have good tooling for manufacturing.

By the end of two years there will be breakeven. By the end of three years the share value seems to multiply by many times. These are early estimations. Actual results may deviate. In that case three years

estimated achievement may be actually achieved in two and half to four years range.

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Risk Mitigation

Business Model:

Scalability: We will manufacture the posts, electronic control unit and software and sell as modules, making it available to ALL furniture manufacturers to use in their products.

Sustainability: R&D will be continued to reduce cost, improve quality, design new variants etc… With these we will avoid competition from trying to produce similar product. Any competitor can buy from us economically then developing their own.

Advantage: We save marketing cost. We avoid competition.

Competition: They will be converted as partners. Since it is new unique product there is no competitor now. We will be giving this technology to all furniture manufacturers avoiding future competition. And our patent is a barrier for entry. ___________________________________________________________________________

Risks:

Other major furniture manufacturers may come out with variants of this design with more cost effective way of achieving similar comfort.

We will give our technology to them forehand to use. We will patent few more variants early and keep researching for more variants. We will keep researching for cost reduction and quality improvements. We already have another cost effective design in plan to start early.

Chinese companies may try to duplicate. Since the product is simplified as module, we will do mass production and introduce

automated production with special purpose machines and make ours more economic then theirs. We have expertise knowledge to make pen at selling price of INR 5 and 10 (~10 and ~20 US Cents), we can use that domain knowledge for cost reduction.

In future we can also have representative in china to defend.

How good an Indian management can manage the international business? We will keep consulting to the US professionals (investor, friends) We will have a Singapore office and manage the sales, marketing, strategy, future

plans with a Singapore team. And R&D, design development and manufacturing will be done in India.

Production cost may escalate while we complete the development. We have done a lot of brain storming and prototype trials on component level

making sure most of the components will be either plastic or stamped giving way for a lot of cost reduction possibilities.

We have the capability to iterate the designs on cost reduction. We have the capability to design and introduce automatic machines for the cost

reduction.

Founder

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About the Inventor/Founder:

Ponnuchamy Varatharaj: Having 12 years of experience in precision plastic mold designing and manufacturing and another 12 year experience as Software product developer running self-employed business, created few music software products and sold them as own products in website www.fleximusic.com and created a wonderful 3D vehicle animation and 3D scene creating software product (for accident reconstruction) as an outsourced project for a Canadian company; that software is being used by many police officers and lawyers in north America and Europe.

Having reached to professional level in both of these fields (tooling and computer programming) started this mechanical product business.

A mechanical engineering diploma holder, attempted to study part time BE and left after few semesters. He has worked in few cities in India and in Singapore, now living in Coimbatore, South India. He has worked with Americans and Singaporeans for many years. Aged 49, he is an Intelligent, innovative, flexible and trustworthy person.

With the experience in Plastic molding and tooling he is able to design and manufacture highly usable and economic product. With experience in music and 3D software he is able to professionally control the new product with computer programs. With the working experience with Americans and Singaporeans he knows to manage the business well. Meditates and exercises every day, so, bold, calm and active all the time.

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Testimony

___________________________________________________________________________

P. Nagappan

Greetings to all. I am Nagappan / CEO – HI- TECH CNC, Chennai – A company engaged in marketing & servicing of Machine Tools.

I had a look at this Tetromatic chair & bed. With computerisation of all operations, I am sure on an average, a working person spends minimum 3-4 hours sitting in front of computer – either for office work or personal Internet usage. This is leading to various health related problems like Back pain / neck pain / eye power problem etc. One product cannot solve all these problems – but I am sure this product is a right step in this direction. Also this products design to ensure smooth blood flow will result in more efficient working & healthier world. Not only for computer operation,it can used for all kind of application which requires people to sit & work. I am unable to estimate the market size but see a huge Huge potential.

I know developer of this product Mr.Ponnuchamy for the last more than 25 years – when he had started his career as a CNC Machine operator. I always noticed his different way of approach to all problem & innovative way of thinking. I could see the same streak in his new product development also. I wish him all the very best & success in his all endeavours.

With best regards P.Nagappan

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Derek Sivers

I’d be happy to say, “Tetromatic Cozy is a wonderful invention, that I wish and hope will be in every chair in the world.”

–Derek Sivers

(An entrepreneur, musician, programmer, writer at sivers.org)

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John Walker

Whether offered to the medical profession or to furniture manufacturers, this technology is so significantly innovative as to merit serious consideration by all. For the former, it meets many current and foreseeable medical needs of which humanity cannot be justifiably deprived. For the latter, prudent business professionals who recognize the value of their and their employees’ comfort must eagerly embrace the products’ assurance of increased productivity. Finally, considering the Comfort Principle of “spending money where you

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spend your time,” I can imagine no one who either sleeps or sits not wanting to invest in the extraordinary comfort these products will offer.

- John Walker, Gatlinburg, TN USA

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Jeffrey P. Toth

Hello, my name is Jeff and I am 56 years old. I was an electrician most of my life until I was badly injured on a job years ago. I now work as a computer technician part time to supplement my disability. I have investigated this new product and I believe that it will be highly successful as it fills a need that I, as a person with severe back injuries, am in need of and I am sure there are multitudes of others who suffer from circulation problems due to injuries and disease. I have had the circulation problems since my injuries while sitting and especially lying down and I can see how this product could potentially relieve this problem especially while sleeping. I have yet to sit in a chair or lie on bed where I didn’t have these bothersome circulation problems while doing so and look forward to trying out this product myself. I have known Ponnuchamy for well over a decade now and have worked with him in business and carried on a personal relationship with him. I trust Ponnuchamy and I trust his opinions and it is a trust that was earned over many years of experience with him. I would personally back up Ponnuchamy on any project that he puts his efforts into and I would be behind him in his endeavors on this product.

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Company

Name: Tetromatic Cozy Products Limited

Address: 9D7, Third Street (West) Nehru Nagar, Sitra Road Civil Aerodrome Post Coimbatore – 641014 India

Website: www.tetromatic.com

Indian Company Identification Number (CIN): U29100TZ2013PLC020081

Tax numbers: CST - 1164860, TIN - 33542125307, PAN - AAECT8613M

Banker: Bank of Baroda, Mid Corporate Branch, Coimbatore

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MOA and AOA follows a standard format of normal Indian Public Limited Companies, So showing

here only those parts which are different.

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Contact:

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Prototype Product Design Images:

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Prototype Product/Component Photos:

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