Muscuvado sugar

With Pandan Aroma Purok 1, Sta. Cruz Polangui, Albay

Business Plan
Ownership: Partnership

Partners Shiela . Segubiense Mary Rose Binaya

Capital Cash Cash

Investment Cash Cash

Amount 196,485.20 196,485.20

Profit Sharing 50% 50%

Nature of Business

Target Market

Food Processing Polangui

Business Profile
Business Name: Shiela & Mary Rose Muscuvado Production Ownership: Partnership Capitalization: Php. 392,971.20 Market: Consumers in Polangui

Muscuvado sugar
With Pandan Aroma

I.

Introduction:

The highland of Polangui, Albay is a known sugarcane growing area in the province. There is a huge demand for sugar cane in the production of sugar and other sugarcane based products due to its natural and highly nutritive value and increasing consumers interest on healthy and organic foods. Muscuvado is a Spanish word mean brown sugar and also locally known as panocha, calamay or sangkaka is a type of unrefined, pure and non- centrifugal cane sugar in a semi-spherical block wrapped in dried banana leaves. It is from sugarcane also known as tubo. In terms of nutritional value compared to more popular white sugar (has 99.5% sucrose), muscuvado has 187grams of calcium, 58grms of phosphorous, 4.8grams of iron, 757grams of potassium and 97grams of sodium. The proponents of this project preferred to produce product MUSCUVADO SUGAR with PANDAN AROMA since the availability of raw materials are in the locality. Putting pandan extract or leaves to the production process will be studied. The project aims to show that Muscuvado Production is a good promising business venture, a way to sped up the progress of the economy. Using agricultural, entrepreneurial skills and abilities is a big factor of attaining success and modern horses of our countrys development.

Vision: To sustain and maintain as leading manufacturer of Muscuvado Sugar with pandan aroma in the locality and community characterized by excellent products and services to customers and eventually export quality sugarcane based products.

Mission: The firm will strive hard and achieve its goal through fair, honest and satisfactory service to the consumers; to gain and keep not just for profit but trust and confidence that will be invested by the public.

Objectives: 1. To produce Muscuvado sugar with Pandan aroma. 2. To promote the products of Polangui. 3. To provide and create employment in the locality 4. To continuously operate and gain profit. 5. To assist and help the government through honest and equitable payment of taxes.

II.

Company Description/Summary

The concept of this business proposal comes from existing livelihood of the people in the upland area of Polangui, Albay which is serving as main source of income. Sugarcane is the generalized name for a class of sweet- flavored substances as food.

Muscuvado comes from Spanish word mean sugar. Nowadays people are getting conscious with their health that is why there is a massive demand of this product. The business plan is in line with manufacturing & food processing type of business. This will introduce to commercialize in the market. The proponent will innovate Muscuvado sugar with pandan aroma. The production requires a machineries and heavy equipments to producing the said product. Using polyethylene plastic as packaging materials is one of the good options to maintain the freshness and quality of the product. The business will be known as Shiela & Mary Rose Muscuvado Production and the trade name would be Muscuvado Sugar with Pandan Aroma as suggested by the proponents itself. Promotional strategies will use to properly situate in the market. The channel of distribution will be the middle men, subsidiary and distributor is a good way to sell the products. The proponent will engage partnership as its nature or form of ownership in managing the company; two (2) workers will be employed together with the General Manager & Assistant general manager. The processing area is located at Purok 1, Sta. Cruz ,Polangui, Albay. The Php.392, 701.20 initial capital investment sourced comes from partners equity.

The Products: its uses and users The proposed product is Muscuvado sugar with pandan aroma. It has no preservatives added using only pure organic sugar. Putting pandan will serve as one of the best aroma that will surely be loved by the consumers. Muscuvado can be use in coffee, pastries and other

sweetener. It is brownish color, powder and unrefined sugar. The ideal market of these products is an export quality.

III.

Strategy and Implanted Summary

a. Competitive Position The strength and opportunities of the firm is in the location of the production area.

The area has enough supply of tubo and pandan that serves as the main raw materials. The raw materials that will be used are critically chose and quality check. Competition is not tough because it has only few existing producer engaging in muscuvado production some of them are well educated the proper use of GMP- Good Manufacturing Practices. Competitors here in Polangui are been monopolized by some

other funding institutions, they cant properly situated in the market where they wanted. The products will differ in quality and the additional aroma and flavor. Flavor or aroma will not affect the taste of the products. The production of muscuvado sugar shall be based on the data gathered survey thru groceries and some other customer using muscuvado sugar. b. Proposed Prices Proponents preferred Php.60.00 in every half kilo since the raw materials are in locality. Prices will base thru the product costing. Competitors price are Php. 70 to 80 per kilo.

IV.

Organizational and Management Aspect:

a. Organizational structure

Shiela General Manager

Mary Rose Assistant General Manager

Production Worker

Production Assistant/ aide

Duties and responsibilities:

General Manager The General Manager performs over-all supervision, plans and set goals, motivates the workers towards the success of the business. Has the authority to formulate and implement business objectives, policies, rules and regulations of the enterprise. The

transactions of the business, the cash collection and disbursement are all supervised by the GM.

Assistant General Manager Serve as an assistant in every decisions of General Manager. Trains and provides worker with the essentials information for their effectiveness and proficiency on this job. Also responsible in monitoring the quality control and examine the production, packaging, labeling, storing and the delivery of the product.

Production worker 1. Will produce the product at the right quality, at the right quantity, at the right time, economically. 2. Observe the cooking hours and will do initial quality checking of outputs. 3. Performs the packaging of finished products 4. Ensure availability of the products in the stock room and displays area.

Qualifications a. Male or female of legal age b. Highly motivated, efficient and hardworking\ c. With knowledge in cooking d. Must have good moral character and willing to learn.

 Production Assistant/ Aide 1. Responsible for assisting the production worker in the production process. 2.Will prepare the raw materials, tools and utensils 30 minutes before the production proper 3. Helps in packaging, quantity and quality checking 4. Double checks quality and quantity of the products before the delivery 5. Ensures that the products shelves and displays area clean and in order at all times. 6. Will do miscellaneous job in the firm.

V.

Technological Aspect

a. Product Specification The business will engage in Muscuvado Sugar with Pandan Aroma Production. The main ingredient is sugarcane or tubo and has a suiting aroma of pandan. It is unrefined, powered and brownish color. This contains a high nutritional value that well to customers health.

b. Quality Control Scheme Business stability also depends on its quality standards of the company that they imposed. It must be insuring that the raw materials must be undergoing the quality control check by the employees in charge. During the production the sugarcane shall go over the Filtering machines to filter/stain the sugarcane juice and Liming Tank to get the pure sugar juice and the residue shall remain. Stainless equipments are preferred to use in production as required by Food &Drugs Regulatory (FAD). Employees or worker must wear their prescribed attire and take a bath before going to work. They must properly observe the Good Manufacturing Practices (GMP). After production tools and utensils shall be washed or keep not exposing to dirt. Proper packaging and labeling will be observed. Upon delivery it should check the quantity and quality of the products. Management and workers must practice discipline to attain its goals and objectives.

c. Plant location and Plant Layout Plant location is a vital in the business enterprise. It must be reachable, attainable and accessible to the costumers. The proposed site is located at Purok 1, Sta. Cruz Polangui, Albay. The proponent has an available property or area to occupy. The road is already concrete. The plant location is nearby the old pavilion, it could be found easily in Sta. Cruz since it is along the road. Abundance of raw materials is one thing to consider why the site is the best location to establish. Availability of parking space for delivery trucks is also preferred.

Proper plant layout shows the arrangement and can determine the tack timein proper operation inside the firm. d. Building Facilities The firm should accomplish the requirements of Food & Drugs Regulatory (FAD) the former BFAD. Screen and well organized production area are the best thing to considered so that it can prevent the flies and other insects entering in the area for sanitary purposes, white painted is also required. 250 square meters are the proposed land area for building requirements. The workplace consists of bathroom, loading area for raw materials cooking area, processing area, cooling area, packaging area and the storage for the finished products. Display and office are is also include. These parts will arrange in chronological manner to avoid backtracking and thereby attain a smooth flow of business operations. e. Utility requirements Electricity- Php. 11.00 per kilowatt hour is the rate collects by ALECO. Water potable water pump pith Php.5.00 per container. Firewood- availability of firewoods is area with no cost but only manpower / people shall consider the cost. Telephone billcellular phone could be the medium of communication since telephone is not available.

a. Process Flow

Raw Materials

Operation

Operation with Quality

Control

Delay

Finished Goods

Process Flow Chart

Sugarca ne tubo& Pandan

Extracting / Crusher

Filtering/ Draining

Liming Tank

Powderzin g/mixing

Cooling/ mixing

Boiling Process

Packaging/ Labelling

Delivery
Muscuvado Sugar with Panda aroma

a. Gantt Chart
2013 2014

Activities

202 201

2012

Jul y Preparation of PFS

Aug

Sept

Oct

Nov

De c

Jan

Feb

Mar

Apr

May

Jun e

Appropriation of funds

Registration to government

Establishment of building facility

Purchase of materials, Furnitures, fixtures Tools and machineries Hiring and briefing of employees Acquisition of raw materials Dry Run Full Operation

IV. Financial Aspect:

Total Project cost

Fixed Asset Equipments Furnitures & Fixtures Tools & Utensils Total Php. 346,000.00 3,410.00 388.00 349,798.00

Working Capital (1 Month) Direct Materials Packaging &Labeling Direct Labor Utilities Rent Expenses Total 15, 600.00 3, 600.00 12, 512.00 1, 900.00 2, 000.00 35,612.00

Project Feasibility Studies Registration Contingency (10% Working Capital) Total

1, 000.00 3,000.00 3,561.20 7, 561.20

Total Cost

Php. 392,971.20

Cost per Unit Price

Direct Raw Materials Packaging & labeling Direct Labor and Fringe benefits Total

Php. 15, 600.00 3, 600.00 12, 512.00 31, 712.00

Factory over Head Utilities Tools & Utensils Rent Expenses Depreciation: Machines & equipments Furnitures & Fixtures Total Divide: Production Volume Total Profit Margin (20%) Selling Price 41, 600.00 699.00 46,587.00 1, 600 48.94 9.79 58.73 1,900.00 388.00 2,000.00

Estimated selling Price kilo

Php. 60.00 per

Raw Materials

Particulars

Qty

Unit Cost

Production/ Day Monthly 720.00 14, 400.00 Yearly 172, 800.00

Sugarcane juice Pandan Total

16 containers 16 kilos

45.00

15.00

80.00 800.00

1,200.00 15, 600.00

3,600.00 176, 400.00

Packaging & Labeling

Particulars Pouches Label Total

Unit Cost 1.25 1.00

Qty 80pcs. 80pcs.

Cost/day 100.00 80.00 180.00

Monthly 2,000.00 1,600.00 3,600.00

Yearly 24,000.00 19,200.00 43,200.00

Production Volume (10% yearly)

Production 2012 2013 2014

Day 80kilos 88 kilos 96.8 kilos

Monthly 1,600 1,760 1,936

Yearly 19,200 21, 120 23,232

Machines & equipments Machines Qty Total/ Unit Cost Extracting/Crusher Filtering Machines Liming Tank Evaporator Powderizing machines 1 1 1 1 1 136,000.00 70,00.00 30,000.00 60,000.00 50,000.00 Estimated Life 10 5 10 10 10 Depreciation Cost 13,600.00 14,000.00 3,000.00 6,000.00 5,000.00

Tools & Utensils Particulars Hairnet Apron Rubber gloves Qty 4 4 4 Unit Pcs. Pcs. Pairs Unit Cost 12.00 15.00 20.00 Total cost 48.00 60.00 80.00

Pot holder Scissors Strainer Trash Can Total

2 1 1 1

Pcs. Pcs. Pcs. Pcs.

25.00 15.00 40.00 95.00

50.00 15.00 40.00 95.00 388.00

Fixtures & Furnitures Particulars Qty Unit Total/ Unit Cost Working Table Exhaust Fan Monoblock 3 Chair Shelves Total 1 Unit 1,750.00 3,410.00 10 175.00 699,00 Unit 90.00 5 54.00 1 Unit 640.00 2 300.00 1 Unit 750.00 Estimated Life 5 150.00 Depreciation

Utilities Administrative Bill Load Cost Electricity Production 100.00 100.00

Water bill Electricity Fuel/ wood Total

200.00 500.00 1,000.00 1,900.00

Manpower Scheme/ Salary & Wages Position General Manager Assistant Manager Production Worker Production Aide Total 11,000.00 1,312.00 200.00 1,500.00 1,500.00 328.00 328.00 50.00 50.00 1,878.00 Php.12, 512.00 1,878.00 200.00 4,000.00 328.00 50.00 4,370.00 Daily 200.00 Monthly 4,000.00 SSS 328.00 Philhealth Total 50.00 4,370.00

Shiela & Mary Rose Muscuvado Production Projected Income Statement For year ended 2013

2012

Gross Sales: Less: Sales discount (10%) Gross Income

1, 152,000.00 115,200.00 1,036,800.00

Less: Expenses Direct materials 176,400.00

Packaging and Labeling

43,200.00

Direct Labor

12,512.00

Tools & utensils Registration

388.00 9,188.00

Utilities

1,900.00

Total

241,188.00

Net income

795,612.00

Shiela & Mary Rose Muscuvado Production Projected Cash flow For year ended 2013

Cash inflow

2012

Gross Income Owners Equity (Capital) Total

1,036,800.00 392,701.20 1,429,501.20

Cash Outflow Machines & Equipment Furnitures & fixtures Tools & utensils Direct Raw Materials Packaging & Labeling Utilities Registration Direct Labor Total Net cash flow 346,000.00 3,410.00 388.00 176,400.00 43,200.00 1,900.00 9,188.00 12,512.00 592,998.00 836,503.20

Shiela & Mary Rose Muscuvado Production Balance Sheet For year ended 2013 2012 ASSETS: Current Assets Cash Inventories Total current asset Fixed Current Assets Furnitures & fixtures Tools &utensils Machines Less: Depreciation Cost Total Total Fixed asset 3,410.00 388.00 346,000.00 41,600.00 304,400.00 308,198.00 836,503.20 43,882.00 880,385.20

TOTAL ASSETS:

Php.1, 188,583.20

LIABILITY

0.00

OWNERS EQUITY Capital Investment Net Income Total Liability & Owners Equity 392,971.20 795,612.00 Php.1, 188,583.20