Table of Contents
Approximately two million people were displaced because of conflict in Burma after United Kingdom granted independence to them in 1948 . Most of them live in the refugee camps along Thailand – Burma border. There are nine refugee camps which are located on Thailand – Burma border. Mae La is the largest refugee camp in that area which was established in 1984. Based on UNHCR data (2016), the camp is home for roughly 37,958 people .
Employment is one of the main issues in Mae La refugee camp. Refugees have been interviewed by Emerging Market Consulting (EMC) and 68% of them suggest that they need skill development to achieve their livelihood standard. They also found that less confidence, skills and education are the main obstacles . The training and educational opportunity for the refugees is very limited. Inside the camp, there is no official work or job to earn a money for living .
Those current issues caused serious health problem to the refugees. PU-AMI (2006) found that half of the adult population in the camp suffer from mental health and the most common medicine used is anti-depressant (as cited in ). Many of them become addicted to alcohol and drug or even further they commit suicide . According to Karen Refugee Committee (2016), there are six deaths from 19 suicide attempts in the camp .
The issues also might have a long-term adverse effect on the Thailand or Myanmar government. This is because when the time comes to the refugees to get their citizenship status, unskilled refugees have high possibility that they are not able to compete with other workforces outside the camp. They become unproductive resources that less contribute to the regional or national economy. Furthermore, they could not fulfil their primary needs because no employer would employ them, and they tend to be a criminal which might cause social problems in both countries.
One of the solutions that might solve that problem above is through the “social enterprise” business model. A business model that combines social and economic value which becomes a current trend . Basically, the social enterprises focus more on the social value to differentiate and compete with the other companies exist in the market, they try to use the margin/profit gained from cost-benefit analysis to cope the social problem through several ways such as employment, social service and/or innovation .
In the case of Mae La refugee camp, the social enterprise should work together with both the government of Thailand and Myanmar. Those two governments play an important role to support in the term of legal approval to a social enterprise who want to operate in the camp. Other existing NGOs and INGOs also have an essential role, because they have operated in the camp for a period of time and they have known the existing condition.
Beside those stakeholders, the customer is another important factor for a social enterprise. Since the popularity of social enterprises arises, people awareness to contribute to alleviate the social issues is also have the same trend. This trend creates a promising market for a social enterprise. A social enterprise should clearly inform the customer about the social values of the products and or services in order to attract a wide range of customers . Research Institute for Social Enterprise found that customers consider the social values of a social enterprise as an important aspect. This is because the customers hope that they could help susceptible social groups by purchasing the products from a social enterprise .
As a consequence, the emphasis on the social value of the social enterprise should be the first priority to differentiate with non-social based companies in order to entice customers and sustain the business.
The competition in the global market that is faced by a social enterprise is not only compete with non-social based companies but also with other social enterprises. In the global market, there are a lot of existing social enterprises who offer similar products or services. They are focus on the people in the poverty and some of them use waste material to produce their products. For example:
- Recycle Creative: a social enterprise who utilised inner tube from tyre waste to produce fashion products such as bag, wallet.
- Prabkaya: a Thailand social enterprise who focus on the waste management including recycling the waste and selling the products that produced from recycling process.
- Wellpaper Auroville: an India social enterprise who train women and sell basket made from waste.
Those companies are just a few from a huge number of existing social enterprises doing similar business like TEHTWIN. They have achieved trust from the customer around the world. The market price for similar products they produced is higher than what TEHTWIN try to offer. For instance, Pencil Case and Recycled Loom Fabric Mat from Recycle Creative are sold for $32 and $42 respectively but TEHTWIN could sell those products for $20 and $32 (the details are shown in the appendix 5.5).
In addition, through the good promotion that underline company’s positive impact on the local society and the environment is the best way to obtain positive impression from customers . This kind of positive activity could lead to the company’s reputation . A good reputation that is gained by the social enterprise might lead to the customers behaviour.
The use of social media platform as the main tool to promote a product also has an essential role to the social enterprises, even a new established company could be a serious competitor because the company use proper way of marketing to promote its product. However, as stated before with a highlight to the company activities that give a positive impact on the local society, customers attention could be obtained. Those impactful activities would give a benefit to the reputation of the social enterprise and lead to improvement of the brand value .
Mae La refugee camp, as mentioned earlier in the report, has the largest population. This give rise to threats like lack of food, medicines, clothes, fuel, electricity, etc, as the non-profit organisations (NGOs and INGOs) unable to keep up with the increasing population. These threats could be minimized by allowing the refugees to try and fulfil their primary needs of food, water and roof on their own. TEHTWIN has a vision of one such innovative idea that will not only make them independent and skilful but will also improve their livelihoods and make them capable of fulfilling their basic needs in times of crisis.
There are basically two phases of TEHTWIN’s, a primary idea and a secondary plan to change the idea into reality. The main idea is to create employment opportunities inside the camp (since the refugees are restricted to leave the camp) so that the refugees can earn some money as well as gain some useful skills. As of now, there is a potential workforce of roughly 20,000 refugees inside the camp who are spending their time doing nothing (ref). The NGOs working within the camp are doing their best to keep the refugees safe and feed the children, however, with the increase in population, their objectives are becoming more difficult to achieve.
The plan to implement this idea is to use waste materials (from nearest tourist spots/cities) and raw materials (easily available and easy to transport) to manufacture products of various categories like, daily use, ornate purposes, artwork, regional specific; raw material available only in Thailand, etc. The refugees will receive special equipment and training, if not already trained by NGO’s separate training programs (ref), to manufacture these products in bulk. Once ready and packed, these products will be sold to vendors and online markets from where they will be sold to interested customers. These products will have a special marking that will indicate the buyers about the make of the product (i.e. it is made by the unemployed refugees in Mae La camp and that the cost will be used for refugees’ benefits).
Once these products start generating revenue, TEHTWIN will pay the refugees handsomely so that they will be motivated and encouraged to earn more. This will eventually increase the throughput, resulting augmentation in the revenue. Some part of this amount will be used to make necessary improvements to the project and, with time, branch out to other refugee camps as well.
This idea and the execution plan will initially be targeted to a small number of refugees. More refugees will be given opportunities with the success at each stage. The varieties and the complexity in products will increase as the refugees become more experienced and professional. Once TEHTWIN achieve the first target of making 100 refugees fully trained. Out of those 100 refugees, few numbers of extra ordinary refugees will be haired to train the next group of refugees. The plan execution process is explained in more detail in XYZ section of the report.
The value propositions are the products and services which helps to create value for a specific customer segment of TEHTWIN. This is an offer of our company to solve customer’s problem or to satisfy their need . TEHTWIN is an innovative business firm which offers the employment opportunities to the refugee of Mae La Camp providing them skill training for the production of different types of handicraft products especially from recycled materials. The product and service of TEHTWIN is to provide short-term training, employment opportunities and business platform to its customer where production, marketing and selling will be handled by our company. The creation of employment opportunities among the refugee will help them for their better livelihood. The value propositions of TEHTWIN is shown in “The Value Proposition Canvas” and attached in the appendices 5.7. The products and services of TEHTWIN to its customer are:
- Employment: skill training provided by TEHTWIN will create an employment opportunity to the refugee
- Skills: refugee will gain skills which will be useful to them for their lifetime
- Resources: TEHTWIN will provide to the refugee that are needed for the goods production
- Business platform: TEHTWIN will provide business platform to the refugee where we will take care of marketing and selling of their products
Following are the pains of the customer:
- Lack of skills: refugee do not have any skill, so they are unable to do income generating work
- Limitation on leaving camp to sell products: as refugee are in the camp, they don’t have access to go outside the camp
- Lack of workspace: there is a lack of sufficient workspace because of limited area and small house
The pain relievers to relieve the pain of customers are:
- Provide skill training: TEHTWIN will provide training to the refugee to make them skilled manpower
- Link to potential customers: TEHTWIN will supply the products to the market
- Infrastructure: TEHTWIN will build infrastructure such as workshop and warehouse
The following are the gain creator and gain for the customers of TEHTWIN which will be addressed by our products and services.
- Livelihood support: creation of employment opportunity due to the training provided by TEHTWIN will help to support their livelihood
- Recognition of product: TEHTWIN will identify the products created by refugee and supply to the market
- Better livelihood: income generated after employed as a skilled manpower will make their livelihood better
- Utilization of productive time: due to unemployment, refugees are wasting their valuable time. So, we will provide them job opportunity to utilize their time for income generation
- Able to support their families: refugee will be able to give better education to their children and can make better life standard of their families
Customer job: Customers will be able to get following benefits:
- Residency opportunities
Cost estimation has been done based on different online sources and Initial Simple Economic Model has been utilized to analysis the investments.
|2.||Equipment and office set up|
|2.2||Office Set up||AU$20,000.00|
|3.||Mobilization (Minimum amount required to maintain the negative cash flow)|
|3.1||Payment for Labour, Material (for 3 months)||AU $79,200.00|
|3.2||First Year Interest||AU $13,800.00|
|3.2||Negative fixed cost||AU $10,000.00|
|Total Amount Required to Start Business||AU$221,200.00|
|1.||Per unit Labour Cost||6.20||Average|
|2.||Per unit Material Cost||2.60||Average|
|3.||Per unit Production Cost||8.80||Average|
|4.||Total Production Cost||316,800.00||per 100 items|
Revenue estimation is based on 100 people as shown in Table 3 and Table 4. In average, a person can create 30 products in a month working 4 hours per day (for detail analysis please see the Appendix 5.5). The assumption of 4 hours per day or one product per day is based on the part time work after doing household activities. If the people produce more products working full time, they will be paid with respect to the number of productions. The target is to increase the number of employees by 100 per year.
|1.||No of Employment||100||People||For the first year|
|3.||Number of productions||3,000||Nos||per month|
|4.||Total Number of productions||36,000||Nos||For the first year|
|5.||Total no of production after 10% rejection/damage||32,400||Nos||For the first year|
|1.||Average per unit Sale price||AU$ 15.20|
|2.||Total income from sale||AU$4,92,480.00||per 100 items|
|3.||20% Commission for venders||AU$ 98,496.00||Per 100 items|
|4.||Fixed Cost||AU$ 128,200.00||Per 100 items|
|4.||Net Income||AU$ 17,280.00||Per 100 items|
Loan Amount = AU$ 2,30,000
Interest Rate = 6%
Loan period = 5 years
Repayments= AU $54,601.17 per year
Using Initial Simple Economic Model(please see Appendix 5.6 for details) the Net Present Value (NPV) is AU$ 4,49,000 and the Internal Rate of Return (IRR) is 62.9%.
To maintain the core values and fulfil the purpose, TEHTWIN has following objectives:
- Build a skilled workforce to enable growth and facilitate job creation in areas where there is unemployment.
- By working for the economic development, TEHTWIN will actively assess and manage requests for financial and business assistance.
- Over the next twelve months, we will develop targeted action plans to increase growth in key sectors.
- Work closely with the governments and international organisations to ensure continuous support for the community.
Risk Assessment includes recognizing, arranging, overseeing, controlling and checking those dangers that endanger the services offered and dealing with all related records so there is up to date and exact documentation of the risk evaluation consistently. It is an on-going procedure that requires the advancement of practical control measures to diminish chances and expand openings. (1)
Influencing a system for risk administration to can include something beyond choosing whether to acknowledge the risk or not.
A risk assessment policy can enable us to give a superior and safe work environment in this way decreasing any negative effects on the business.
As a start-up, Tehtwin might face challenges in the accompanying classes:
Models of significant market-based risks that can obliterate our startup incorporate the following:
• Lacking an extensive shopper base for an item or administration
• Having excessively rivalry to support a plan of action
• A thin and starving net revenue in view of expenses and costs
• No genuine interest for offered items and administrations
After the initial functioning of our organization, insurable dangers might come across in the form of:
• Property dangers – dangers of property harm, burglary, vandalism and so on.
• Litigation chance – danger of individual damage identified with business
• Copyright and protected innovation chance – dangers identified with claims over brands, items or administrations notwithstanding these standard types of dangers, there are different sorts of “dark swan occasion” hazards that apply to some less normal types of emergency that may influence a whole network.
Another significant piece of the risk assessment condition includes the capital we require. In such manner, we may not be completely not the same as a bigger company in the sorts of budgetary models that should be set up. The overarching thought in the business world is that obligation is an essential piece of numerous new company models.
Basic risk appraisal segments include anchoring and overseeing obligation. The accompanying are monetary difficulties we must manage:
• organizing with venture capitalists and financial investors
• securing venture credits like business loans
• clearing debts after some time
• demonstrating adequate development or expansion to warrant new round of financing
To minimize the dangers identified with a scenario, (for example, a contender moving into a similar road), we would initially take a look at:
- the harm that the risk would cause (for instance, the danger of less clients implies bring down deals for our business)
- The probability of the risk occurring (for instance, the contender’s business and how our clients react to them).
By working out a rating framework for harm and probability we could have:
- Appraisals of 1 to 4 for harm (1 for slight harm, and 4 for extreme harm)
- Appraisals of 1 to 4 for probability (1 for not likely, and 4 for amazingly likely).
Chance level =Harm x Probability
Based on our precedent over, the most reduced risk level we could get is (1 x 1), and the most elevated risk level we could get is 16 (4 x 4). We can utilize the risk levels to rank our dangers from minimum earnest to dire accordingly.
risk-assessment-for-sailing-startups. www.business.com. [Online] 02 22, 2017. [Cited: 09 18, 2018.] https://www.business.com/articles/risk-assessment-for-sailing-startups/.
- Unemployment has been the primary concern in many parts of the world and a refugee camp is no different. Thus, the vision to fight unemployment is one of the major strengths of TEHTWIN.
- Most refuges in Mae La camp are unskilled. This gives us an opportunity to run skill development programs that will not only improve the production and manufacturing phase of the project but will also help refugees to gain knowledge which they can use in the future.
- Another strength is the availability of ample workforce in the camp.
- Since there are NGOs and INGOs already working inside the camp, a collaboration with such organisations will help with the initial analysis of the camp and later reduce the training program duration.
- Advertising the products requires a high cost. But the availability of social media as an advertising platform will reduce these costs.
- To make sure that this project uses as low funds as possible, TEHTWIN’s target will be to use waste materials as much as possible. This approach will also promote the waste recycling trend.
- There is lack of initial capital to initiate a research on the Mae La refugee camp in which TEHTWIN will conduct a study to determine the all the possibilities and the feasibility of the project.
- Although the camp has a huge population, but the opinion of refugees towards TEHTWIN’s plan cannot be predicted, which makes it a major weakness of the plan.
- Most refugees have become dependent on the external aid they are receiving from UN and other organisations. This makes them unreliable and a weak link in the workforce.
- Recycling of all kinds of waste materials is not be possible in the camp.
- TEHTWIN’s approach to reduce unemployment advocates a similar, very popular trend of businesses making profits by acting as a beneficiary to society except TEHTWIN focus is to use the profit made to pay the refugees for their hard-work and expand the organisation.
- By using waste as main source of raw materials, there is a wide range of products that can be manufactured.
- Mae La refugee camp is prone to floods, spread of illness and other natural hazards which creates a possibility of abruptly ceasing the project operation at any point of time.
- There might a change in government policies regarding international entrepreneurs working within the camp.
- Land availability to build a workshop inside the camp is a major threat.
- Changes in import and export policies of materials may hinder the speed of operation.
- Lack of raw materials for manufacturing the products may cause a decrement in the production.
TEHTWIN will analyse the target markets and the required value proposition will be offered to gain the maximum customer base. Since our organisation is new to the existing market, we will undertake a social media campaign to establish our presence.
By providing the products at the right price we will ensure that there is a good demand for our products. Chan Mai and Bangkok being a famous tourist destination serves as a huge platform to capitalize and promote our brand.
It can be seen from recent trends that customers are conscious about their buying preferences, by highlighting our cause for Mae la camp we can build our business.
An important aspect of having a profitable venture is by retaining the right people. Not only it substantially reduces operational costs but also offers the employees a better long-term career path.
We will have a good system to track employee progress and ensure that employee satisfaction is at its best. This is good for the organisation as well the employees as more new people would join the program.
A recognition program can help us create a work culture where everyone wants to be a good example. This also shows our commitment to the development of the camp and increases the morale.
TEHTWIN will employ a competitive pricing model for better market penetration. Though this technique might cause loss initially, it is much suited for smaller organisations. Over time with the increase in awareness this can lead to better sales and will also allow us to raise the prices if required.
Increase in sales means that more products will be sold, and the refugees will be benefitted from this strategy.
Mae la camp is a home to nearly 40,000 people and hence any activity which might affect the living standards will not be tolerated. We will ensure that the natural resources of the camp are not harmed, and strict policies will be in place to prevent negative impacts.
The Royal Thai Government (RTG) and local authorities are the key partners of TEHTIWN. There are many other organisations working in the Me La Camp. Accordance with The Border Consortium Report 2017, the INGOs that are working in the Camp are Christian Aid, United Kingdom (UK) and Ireland; Church World Service, USA; Dan Church Aid, Denmark; Diakonia, Sweden; Inter-church Organisation for Development Cooperation (ICCO), Netherlands; Inter Pares, Canada; International Rescue Committee (IRC), USA; the National Council of Churches Australia (NCCA)-Act for Peace, Australia; and Norwegian Church Aid, Norway . TEHTWIN will work together with these organisations for the skill development of the refugee. Social media such as Facebook, YouTube, newspaper will be used for advertisement purpose and online selling platforms such as eBay, Alibaba will be used to sell the products.
Key resources are the most important assets of TEHTWIN for the execution of its business plan in the Mae La Camp. These resources help for the generation of value prepositions and revenues. The key resources of TEHTWIN can be categorized physical, human and financial. The physical key resources are workshops, warehouse, recycle materials and waste newspaper. The human key resources are trainer, skilled manpower and effective sales force. Similarly, the key financial resources are government aid, bank loan and donor organisations.
Context, Customer Profile and Competition
In conclusion, a social enterprise might be an answer to the employment problem in Mae La refugee camp and with the right approach to the related stakeholders and marketing strategy, TEHTWIN, as a social enterprise, has a high possibility to sustain the business and beneficial for the investors.
The Value Proposition:
The value proposition of TEHTWIN is to offer the employment opportunities to the refugee of Mae La Camp after providing skill training for the production of handicrafts products from recycled materials. The employment opportunities provided by TEHTWIN will help refugee to increase their livelihood.
Key Partner and Resources:
The Royal Thai Government (RTG) and INGOs, that are working in the camp, are the key partners of TEHTWIN. Similarly, online selling platforms such as eBay and Alibaba are other key partners. The key resources of TEHTWIN are aid, loan, donation, trainer, skilled manpower, recycle materials, workshop and so on. These key resources play an important role for the generation of value prepositions and revenues.
With the careful consideration of different costs, TEHTWIN is looking for AU$ 230,000 (Two hundred and thirty hundred thousand Australian Dollars) loan as seed money to proceed the social entrepreneur Business Plan. With the help of Initial Simple Economic Analysis, the NPV and IRR of this project are AU$ 489,000 and 62.92% respectively which clearly indicates that the social entrepreneur business plan is feasible.
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The core purpose of TEHTWIN is to provide an employment opportunity. There are many people all over the world who have lost their livelihood due to political conflicts or natural disasters. The innovative products or methods will provide people an opportunity to get to a stable position and support their families improving their livelihood.
The values of TEHTWIN is the basic principle which are core to its foundation. The core values of TEHTWIN are innovation, employment and altruism.
To fulfil the above mention core values and purpose of TEHTWIN, it has a following energetic and dedicated team members.
Amar Pantha is a Co-ordinator of TEHTWIN who leads the organisation. Amar acts as leader for the overall management and operation of the organisation.
Amar is studying Master of Civil Engineering in The University of Queensland. He completed bachelor’s degree in civil engineering from the Tribhuvan University, Nepal. After his bachelor’s degree he worked for eight years in construction industry and in Team Nepal company as Managing Director. His educational background and work experience have helped him to develop planning, organizing, leading and controlling skills. His plan is to make company profitable within one year of operation.
He is expert in AutoCAD and MS office programs. He is good communicator, transparent and well organised. Amar is a professional member of Nepal Engineering Council and student member of Engineers’ Australia.
Chandra Wemy Kurniawan is an Internal Auditor of TEHTWIN. He is a graduate from Diponegoro University, Indonesia where he received a Bachelor’s in Civil Engineering. Currently, he is studying Master of Civil Engineering in The University of Queensland
After graduation, Chandra started his career as a Civil Engineer in Indonesia where he began specialization in construction management. He worked as a construction manager for three years in PT. Adhi Karya (Persero), Indonesia. He then continued his career as an auditor in the Supreme Audit Board for the Government of Indonesia for 7 years. Chandra has a skill of AutoCAD and MS Office Programs.
Pranay Malviya is a Planning Director of TEHTWIN where he plans, organises and directs the overall operation of planning department.
Before joining TEHTWIN, Pranay had attended an Industrial Training Program in B.H.E.L. His main project involves creating a UI to calculate the parameters for riveted joints in boilers. He is currently pursuing Master of Engineering in Mechanical from The University of Queensland. Pranay is expert in CATIA, C Language and Microsoft Office.
Pranay graduated from the Rajiv Gandhi Proudyogiki Viswavidyalaya, India with bachelor’s degree in Mechanical Engineering.
Rajib Pandey is a Marketing Director at TEHTWIN, where he leads the sale and marketing division. He graduated from the Tribhuvan University, Nepal with a bachelor’s degree in Civil Engineering and currently he is studying Master of Civil Engineering in The University of Queensland.
Rajib has an experience of working in engineering construction and consultation field for five years. He had worked in the building, road, bridge and hydropower projects.
His primary interest includes creative design to bring his thoughts and idea in an exceptional piece of art. He has a knowledge of AutoCAD, MS Office.
Ram Kumar R is the Production Director of TEHTWIN with a passion for the development of new product. He is a meticulous learner with a curiosity to remain in a domain of continuous development, innovation and technological improvisation. Ram holds bachelor’s degree in Mechanical Engineering from Anna University, Chennai. Currently, He is studying Master of Mechanical Engineering in The University of Queensland.
Ram worked for two years as Process Engineer in ELGI Equipment and Project analyst in Tech Mahindra. He has an experience of working on non-conventional energy projects based on solar refrigeration and vertical axis wind turbine.
He has computer skills in different software like Catia, Ansys, SQL and ITIL packages. He is an active member of FSAE and IISE.
- AUD $ 1 = 25 baht (approximately) at the exchange of date:15/10/2018
- TEHTWIN will create employment for 100 Refugees (working age) per year
- i.e. target of 1000 job in Mae La Refugee camp in 10 years
- Product analysis shows that one person can create 30 products in average in one months working up to 4 hrs per day, for that one person will get the payment of 4,500 baht per months (AUD180)
- If a person can work full time and create 60 products, they may make 9000 baht per months (AUD 360)
- Labour charge, 300 baht per day (8 hrs) which is AUD 12 
- Raw material, tool kits and training will be provided by TEHTWIN
- At the beginning of the first-year workshop will be constructed within camp (Approximate size of the Workshop is 50 ft.x40 ft. which includes Office-20×15 sq. ft.+ 2 Storage room- 20X10 sq. ft. + Training Room-20X30 sq. ft.+ Equipment room-25×15 sq. ft. and Toilet bathroom 15X10 sq. ft.)
Construction Cost Estimation:
- Size of Workshop = 2000 sq. feet = 185.80s sq. meter
- Construction cost per sq. meter = 7,800 baht (includes 7% VAT) 
- Total workshop construction Cost = 1449286.8 baht = AUD 58,000
- 6 months for negotiation with different parties (Refugees, Royal Thai government, NGOs /INGOs etc), construction of workshop, training and business set up
- Refugee will be employed for the construction of workshop as well
- Similar size of workshop will be built at the beginning of fifth year to accommodate the growing business
- Mobilization cost has taken as the cost to sustain business without any return from sell for the first three months and that money will continuously use for another term.
Fixed Cost Analysis:
|1.||Training+ Tool Kits||AU$ 25,000.00||per 100 person|
|3.||Salary||AU$43,200.00||per year for 5 People|
|Net Fixed Cost||AU$128,200.00||per year|
Product Cost Analysis:
|S.N.||Product||Labour Cost||Material Cost||Product Cost||Our Sell Price||Market Price|
|1||Tooth Brush Holder||AU$6.00||AU$2.00||AU$8.00||AU$14.00||AU$16.00|
|3||Recycled Loom Fabric Mat||AU$12.00||AU$6.00||AU$ 18.00||AU$32.00||AU$ 42.00|
|4||Basket||AU$ 2.50||AU$ 0.50||AU$ 3.00||AU$ 5.00||AU$ 6.00|
|5||Jewellery||AU$ 2.50||AU$ 0.50||AU$ 3.00||AU$ 5.00||AU$ 6.00|
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