Granite Industries, Inc.

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Chemical Laboratory Business Plan


Creatine Monohydrate. This is a dietary supplement commonly used by athletes to improve strength, endurance, and muscle mass. Creatine has become the most popular body building supplement in use today. It is sold in many forms through health food stores, drug stores, and discount chains. The leading producers of Creatine are in Europe, and only a few recently in the United States. The distribution system is complex, with manufacturers selling through a layered system. We have developed a Creatine-based drink which is one-of-a-kind. We hope to begin marketing the product in 2001. Sales potential is well over $1 million per year.

Kelate Cu. This is a specialty product used in cosmetics. It is distributed through Distributor A by special arrangement. Their largest customers are Estee Lauder and Revlon. We project sales of this product to be between $140,000 and $175,000 per year.

Melasyn 100. This is a synthetic form of natural melanin. It is used as a pigment for vitiligo preparation and as a self tanning agent. It is water soluble, which makes it easy to formulate in cosmetic preparations. We are working with Customer A to supply this product to Distributor A. We project sales of $250,000 in 2001.

G-REZ DB. This is a specialty coating material used on industrial buffing pads. We developed the product at the request of the Customer C and sales can reach $300,000 in 2001.

Becrosan 2128A. This is a corrosion inhibitor with a bright future. Similar chemistry has been very successful in Europe for several years. We have manufactured this product on a toll arrangement for Customer B at a level of $65,000 per year. With marketing, we estimate the potential to be $260,000.

Ion Exchange Resins. We provide a toll drying service for Customer D at a level of $35,000 per year. We feel this can increase substantially with additional equipment.

Recrystallized Flavoring Product A. This is a crude Flavor A extract. We purify the extract into an edible grade flavoring using our proprietary recrystallization process. It is then used in both food and tobacco industries. We teamed with Distributor B, the world's largest distributor of Flavor A, to develop the process. Broker A is the broker. Estimated sales based on current demand levels are $75,000 in 2001.

Note: Customer and Distributor company names and financial information have been removed from this sample plan to protect proprietary and confidential information.