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BiD Grade Plans
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  • The full business plan documents have been submitted for assessment.

  • The plan application has been submitted for assessment.

 
Business established

4

Coconut+Coir Full Value Recovery Enterprise

A whole nut and zero-waste joint-venture social enterprise that will produce coir products mainly for export with the farmers-coops as partners.

Presented is a business plan to operate coconut coir manufacturing plant that will produce baled fiber, stitched cocomat, and cocopeat as well as marketing of whole nuts and charcoal briquettes under the 3-F (Fiber, Fuel and Food) coconut value chain development program of Pitad Inc. in partnership with the coconut farmers-cooperatives.

Assured buyers of all coconut products have been negotiated. The financial analysis showed a profitable indicator of around 31% ROI.

Pitad and Cocoline will provide financial guarantees or counterpart funds to the propose business venture.

Facts

Legal status business
Formally registered
Year of establishment

2005

Sales (US$)
Two years ago: 63,148
Last year: 186,270
This year (forecast): 200,000
Year 2 (forecast): 250,000
Year 3 (forecast): 300,000
Net profit after tax (US$)
Two years ago: 22,462
Last year: 42,683
This year (forecast): 45,000
Year 2 (forecast): 50,000
Year 3 (forecast): 60,000
Total number of Employees
Two years ago: 9
Last year: 14
This year (forecast): 16
Year 2 (forecast): 18
Year 3 (forecast): 20

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 156,977
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 229,266
Total finance needed (US$) 386,243

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 14,633
Loans (debt) 120,000
Share capital that you seek from investors (equity) 181,610
Other sources 70,000
Total finance needed (US$) 386,243

The Business

What is your product/service?

PRODUCTS

Dehusked Coconuts, kg
Charcoal Briquettes, kg
Baled Coco Fiber, kg
Stitched Cocomats, sqm
Coco Fiber Geotextiles, sqm
Cocopeat, kg

What customer need/problem do your products/services satisfy?

Dehusked Coconuts> FOOD-used to produce desiccated nuts and coco water juice
Charcoal Briquettes> FUEL-alternative cooking fuel by consumers
Baled Coco Fiber> FIBER-used mainly by bed-mattress manufacturers in China
Stitched Cocomats> FIBER-used mainly by bed-mattress manufacturers in the Philippines
Coco Fiber Geotextiles> FIBER-used for slope erosion mitigation & greening projects
Cocopeat> Used as organic soil conditioner and fertilizer

How will you make the product/service?

1. Re-operate the Ligao Coir Central Plant located in Bicol, around 400 kilometers south of Manila. Specific activities are to undertake minor repair of the machines to be able to produce baled fiber, stitched cocomat & cocopeat.
2. Expand the volume of the on-going dehusked nuts marketing of Cocoline Farmers Network Cooperative.
3. Outsource the on-going charcoal briquettes business of Pitad to the farmers-cooperatives in Bicol.
4. Outsource the on-going geotextile business of Pitad to the farmers-cooperatives in Bicol and Samar.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

Institutional marketing will be made with the big companies using the products of the joint-venture enterprise. Pre-booking of orders with purchase orders had been made with prospective buyers of the dehusked nuts, charcoal briquettes, baled fiber, stitched cocomats, geotextiles and cocopeat. PO will be issued by customers once the production of these have commenced.

To whom are you selling, what is your market?

PRODUCTS CUSTOMER
Dehusked Nuts Desiccated and coco water processors in South Luzon
Charcoal Briquettes Philcotech for Metro-Manila consumers
Baled Fiber Green Resources Limited of Xiamen, China
Stitched Cocomats CoirFlex, Shelltex, Metro-Manila coir-bed manufacturers
Coco Geotextiles Pantabangan and Magat Dam. Road Contractors
Cocopeat Green Resources Limited of Xiamen, China

Describe your competitors?

Dehusked nuts > other nuts suppliers in Bicol region
Charcoal Briquettes > other charcoal suppliers in Mindanao and Visayas far from Manila
Baled Fiber > No competitor in Bicol region
Stitched Cocomats > No competitor in Bicol region
Geotextiles > Soriano Fiber & Cocotech >40% of the local market
Cocopeat > no competitor in Bicol region

What makes your business different/better than your competitors (competitive advantage)?

Deshusked nuts will be sourced from the farmers-coops who are partners of the JV;
charcoal briquettes is made from carbonized rice-hull mixed with ground cocoshell which is cheaper to produce
Sourcing of baled fiber, stitched cocomats and cocopeat have no competition in Bicol
Geotextile is used exclusively (captive market) in the bioengineering projects of Pitad

What makes your business, your product or service innovative?

The business plan is to operate coconut coir manufacturing plant that will produce baled fiber, stitched cocomat, and cocopeat as well as marketing of whole nuts and charcoal briquettes under the 3-F (Fiber, Fuel and Food) coconut value chain development program of Pitad Inc. in partnership with the coconut farmers-cooperatives. The rationale of having 6-products is to give full value to the coconuts harvested by the farmers and put added value on the coconut husks normally classified as waste.

How will you ensure the growth of your business?

Maintaining the cost effectiveness and efficiency of the plant's operation considering its mini size which is manageable having low operating cost.

Strengthening its business relationship with the farmers supplying the coconuts to ensure sustainable supply of nuts.

Aggressive institutional marketing by direct negotiation with customers' decision makers to ensure captive markets.

High product quality, on-time deliveries to customers

The Entrepreneur & Management

Describe the entrepreneur & management

I have strong passion to be the first entrepreneur set-up a coconut + coir processing plant in the country in partnership with the coconut farmers. Currently, Pitad Inc with me as the project-in-charge is engaged as Business Development Service Provider of the Dept. of Agrarian Reform for the Agrarian Reform Beneficiaries coconut farmers.

As social entrepreneur, I have been managing enterprises benefiting the coconut farmers

I graduated BS Agricultural Engineering, finished Master of Engineering degree in Agricultural Engineering from Asian Institute of Technology, Bangkok, Thailand.

What specifically makes you and (if relevant) your management team most qualified to build this business?

I have managed the start-up of Pitad's coco coir business, developed the technology on coir processing and has consolidated the supply of dehusked nuts as raw materials of some dessicated coconut plants.

I work with many agencies as consultant on coconut processing.

The management team has the expertise and experienced on coir processing.

How much time do/will you expect to spend per week in the business?

I will be managing the enterpise on full time basis.

I will be devoting 100% of my time weekly to supervise all operations from production and markting

Development

How does your business improve the local living standards (social and environmental)?

Enterprise will provide business to coconut farmers cooperatives to process their coconuts into high value finished products.

An innovation is the production of charcoal briquettes, cocopeat, geotextiles and stitched cocomats that are all high value coir products used for environmental applications.

4 comments

uploading

My business is a large file. I converted it into a html file for uploading please check if you have receive it.

thanks.

sam gelera

29 June 08, 03:37 Samuel Gelera, 29 June 08, 03:37

reply

Kindly reply if my complete business plan (html file) was received inorder.

thanks.

sam gelera

29 June 08, 11:23 Samuel Gelera, 29 June 08, 11:23

SWFI.

Please check out the Sovereign Wealth Fund Initiative as an option for accessing investment funding the website is:
www.swfinitiative.org, should you have interest in exploiting this funding option; please revert to me ASAP.

JB.
info(at)iifg-eu.net

22 July 10, 17:22 'James Borgensen' - DISABLED SPAMMER, 22 July 10, 17:22

Investments

interested in investing buisness, time, and leisure to opportunity.

15 Sept 11, 18:47 Denise Lewis, 15 Sept 11, 18:47