GlowCorp - October 17
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Transcript of GlowCorp - October 17
GLOWCORP
October 17, 2013Bahay ng Alumni, University of the Philippines
Quezon City, Philippines
Presented by:Global Organic and Wellness Corporation90-C, 4th St., Mariana, New Manila, Quezon City, Philippines
Project PitchTitle
Presenter’s Name & Org
October 17, 2013Bahay ng Alumni, University of the Philippines
Quezon City, Philippines
Growth opportunities for organic products
Organic products now entering mainstream market in Metro Manila (80% of domestic organic consumers are located) Total value traded P266.7M
(USDA, 2000). 2007 estimate is between PhP860-PhP1.3 billion (PDAP)Organic rice requirements for Manila is
2,480 sacks or 124 MT per month or 488 MT per year (ICCO, 2011); muscovado sugar-2,049 MT (PDAP)Annual growth of organic consumption-
20% (DA)
Growth opportunities for organic products
Of the 2,480 sacks or 124 MT per month or 488 MT per year , GlowCorp now trades 1,250 sacks of organic rice in the past months
Potential export market with actual inquiries for organic rice (Europe, Russia, US and Hong Kong); certified muscovado sugar in Taiwan, South Korea, Singapore
Problem Analysis
Constraints that undermine the participation of small farmers in the market:Small-scale producers are
focused on local markets (direct sells and mobile stalls)Specialty stores for organic is
limited in scope and reachSupermarkets favor large
commercial suppliers over small farmers
Problem Analysis
Small producers are often on the disadvantage due to unfavorable trading arrangements such as pricing schemes, overdue payments by distributors, lack of logistical supportMiddle-men most often generate the most income than farmers
Our Business Model
TARGET MARKET
Quality Products Branded Quality Products
MEs
LCs
Micro Entrepreneurs
(MEs)
LocalConsolidators
(LCs)
GLOW CORP
Premium PricingDividends
Technical Assistance
Profit
A stock corporation organized by small organic rice farmers, muscovado producers, NGOs, and advocates of organic products
Provide steady and stable market for organic rice and muscovado producers
Improve marketing arrangements through participatory and transparent negotiations, and practice of fair trading principles
Equitable sharing of benefits and profits gained from marketing
Our business model
GlowCorp organizational set-up. In the past, participation of farmers in the value chain was limited in the production level. Farmers are now active participants in the retail and wholesale market through GlowCorp.
Unique feature (community-based organizations as investors and co-owners). Profits will be ploughed back to these organizations through rebates, dividends or technical support.
Exploring every possible markets (retail markets, wholesale, institutional, export, other untapped markets)
Our innovative response
Principal Shareholders
Kappia, Abra (Muscovado)
CARRD, Manila (Muscovado, Organic Rice)
PDCI, Camarines Sur(Organic Rice)
AFCCUI, Antique(Muscovado)
Don Bosco Fdn, North Cotabato(Organic Rice)
Don Bosco MPC, North Cotabato(Organic Rice)
SKMFMC, Sultan Kudarat(Muscovado)
KSN, South Cotabato(Organic Rice)
Shareholders and Partner-Farmers
Shareholders Partner-Farmers
Kappia 300
Center for Agrarian Reform and Rural Development
1,000
Pecuaria Development Cooperative 600
Antique Federation of Cooperatives 500
Bios Dynamis Multi-Purpose Coop 392
Don Bosco Foundation
Sultan Kudarat Muscovado Farmers and Millers Corporation
1,900
Kooperatiba Sto Nino 150
Linabu MPC 100
Total 4,942
Product lines
Target Markets
Rice retailers and distributors
Private and government offices
Hotels and restaurants
Supermarkets
Domestic Markets Export Markets
Hong Kong Singapore Russia South Korea
Social ImpactDirect jobs created within GLOWCORP
12
Community Based Entrepreneurs (CBEs) benefitedDirect Investors 4 (organic rice)
3 (muscovado)1 (organic rice & muscovado)17 individuals
Other CBE-producers 4 organic rice producers2 muscovado producers1 coco-sugar producer1 coffee producer
Farmers reached(estimates)
1,900 farmers/millers (muscovado) 2,000 farmers (organic rice)100 farmers (coco-sugar)
Sales Income Generated Php46.2M (2010-2013)
Social Impact
Increase income of organic farmers and workers
PecuariaDevelopment Cooperative
Additional income because of incentive of Php16,000 to Php21,000 per cropping per year
Sultan KudaratMuscovado Farmers and Millers Corporation
Gain sharing scheme provides more economic opportunities to laborers and mill workers. Mimimum of Php1,000 per day per family if the whole family of 5 serves as maintainer, harvester and mill worker
What have we done
Monetary benefits provided to shareholders and other producers:
• More than Php32M worth of products purchased from shareholders and other producers (as of June 2013)
Close to 170 buyers/ distributors/ supermarkets as regular clients
1 exporter from Hong Kong Ongoing negotiation with exporter for the export
of organic rice flour to Europe; organic rice to Russia
2013 Target
Target
Gross Sales Minimum-Php22MMaximum-Php32.3M
Sales volumeOrganic riceMuscovado sugarCoco-sugar
279MT137MT17MT
Net Income Php594,000
Number of stores/clients Existing-123New-245Total-368
Staff complement 5 core1 outsourced7 production personnel
Farmers reached 2,500
What have we doneYear on Year Sales Growth
-500000
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
2010
2011
2012
2013
What have we done
2010 2011 2012 2013
1,385,815.00
8,254,730.00
17,116,233.79
19,875,168.99
Sales Trend
Financial performance: YoY Growth
*As of September 2013
Year-on-Year Growth Difference Percent Growth
2010 1,385,815.002011 8,254,730.00 6,868,915.00 496%2012 17,116,233.79 8,861,503.79 107%2013* 19,875,168.99 2,758,935.20 16%Total Sales 46,631,947.78
What have we done
Profitability
2010 2011 2012 2013
(416,860.00)
(763,941.90)
160,223.00
382,920.52*
Income Trend 2010-2013
*As of June 2013
Sales Projection
Target 2013 2014 2015 2016 2017
Sales 32,266,000 40,332,500 50,415,625 63,019,531 78,774,414
Income 406,666 879,468 809,326 1,756,660 2,862,272
The EntrepreneurGLOBAL ORGANIC AND WELLNESS CORPORATION
Start ofOperation
January 2010
Registered May 19, 2010; SEC Registration # CS201007376
Actual start of marketing activities
June 2010
Type Profit Corporation
Shareholders 25 (including individual shareholders)
Management (5) 1. General Manager2. Sales and Marketing Officer3. Marketing Coordinator4. Finance and Administrative Assistant5. Finance Consultant (outsourced)
ProductionPersonnel
7
The Entrepreneur
BOARD OF DIRECTORS
CornelioCastaneda, JrChairman
President/General ManagerSultan Kudarat Muscovado Farmers and Millers CorporationPresident Quirino, Sultan Kudarat
Romano LaurillaVice Chairman
General ManagerDon Bosco Multi-Purpose CooperativeMlang, North Cotabato
Edwin NervaTreasurer
Executive DirectorCenter for Agrarian Reform and Rural DevelopmentQuezon City
Mary Grace SantosCorporate Secretary
Individual shareholderQuezon City
Miller BicaldoAuditor
General ManagerPecuaria Development CooperativeBula, Camarines Sur
Vision
GlowCorp to be the leading market distributor of globally-competitive organic, natural and healthy agri-based commodities produced by marginalized groups and community-based enterprises that promote economic empowerment of the rural poor and improved quality of life
Vision
GlowCorp to be the leading market distributor of globally-competitive organic, natural and healthy agri-based commodities produced by marginalized groups and community-based enterprises that promote economic empowerment of the rural poor and improved quality of life
Mission
GlowCorp to develop new, non-traditional markets as well as increase market share of organic and natural products such as organic rice and muscovado sugar from 1% to 5%, leading to creation of more jobs and increase in income among community-based enterprises/ farmers.
Investment Requirements
Total Sources of InvestmentsInvestors GlowCorp
25,679,503 20,520,322 5,159,181
Offer to Investors:Equity InvestmentSubordinated LoanCredit Line
Thank you!