YPB Group Ltd (ASX:YPB) has signed a non-exclusive Master Services Agreement (MSA) with India’s Optimum Interface Consulting (OIC) which provides investigative and risk mitigation services including the provision of anticounterfeit technology solutions.
The MSA is for a three-year term commencing September 29, 2020, and OIC will be YPB’s agent with the right to promote and sell YPB’s suite of product authentication technologies to its customers in India.
“Technology in demand”
Counterfeiting is a huge challenge for the Indian economy costing the country around US$15 billion each year and the problem has been exacerbated more recently by the growing shift to online commerce in a market where over 30% of drugs sold online are fake.
YPB CEO John Houston said: “Demand for our technology continues to grow and tendering activity is pleasing despite the impact that the COVID-19 pandemic is having on our business development efforts.
“Apart from this MSA, we expect to report more sales contracts in the very near term.”
“Risk-free market entry”
Houston said that OIC was a great partner for the company to re-enter the Indian market and the MSA was a low cost- and risk-free entry into what is a potentially large market.
He said: “To partner with a respected operator with a well-entrenched customer base saves us the considerable cost of establishing our own sales presence there.
“The MSA also dramatically fast-tracks potential sales opportunities, especially for our proven Tracer product.
“We are now upskilling OIC’s people on our technologies and our own team will be on hand to address product inquiries from OIC’s potential customers.”
OIC works with a large number of Fortune 500 companies in the pharmaceutical, electrical, IT, automotive, finance, export houses, travel and hospitality, banking sector, education, chemicals, tobacco, FMCG, telecom, export, reality and computer consumable industry sectors.
It will earn a 12% commission on every successfully executed customer purchase order with YPB.
OIC has made a thorough assessment of YPB’s technology and has already identified several sales opportunities for YPB’s T2 Tracer technology within its customer base.