M A R K E T I N G P L A N

INTRODUCTION:

HEVEA BRAZILIENSIS OR MOST COMMONLY KNOWNED AS NATURAL RUBBER HAS BEEN ONE OF THE MOST VIABLE & SUSTAINABLE COMMODITY IN ZAMBOANGA SIBUGAY. AGRICULTURAL STATISCAL DATA SHOWS THAT ZAMBOANGA PENINSULA PRODUCES ROUGHLY AROUND 7OO METRIC TONS OF COAGULATED RAW RUBBER A MONTH. PRICES TOO IN THE WORLD MARKET HAVE STEADILY GONE UP SINCE YEAR 2004 TO PRESENT FROM, $ 1,200 TONNE TO AS HIGH AS $ 2,300 / TONNE. IN THE LOCAL POINT OF VIEW, PROCUREMENT PRICES HAVE REACHED ALL TIME HIGH AS P 60.00 KILO. MANY SMALLHOLDERS FARMERS HAVE VENTURED INTO RUBBER PLANTATION TO CATCH UP THE INCREASING DEMAND OF RUBBER BOTH IN THE LOCAL & EXPORT MARKET. GIVEN THESE FACTS, THE RESEARCHER HAVE EXPLORED THE IDEA THAT THERE WILL BE AN OPPORTUNITY TO ESTABLISH A STATE OF ART CRUMB RUBBER DEWATERING & PROCESSING FACILITY THAT WILL MEET INTERNATIONAL STANDARDS IN RELATION TO TECHNICALLY SPECIFIED RUBBER ( TSR ) PROCESSING. THIS PLANT SHALL CATER LOCAL TRADERS & RUBBER FARMERS WHO WOULD LIKE TO HAVE THEIR RUBBER PROCESSED. THIS PLANT SHALL ALSO BE HIGHLY AUTOMATED & EFFICIENT IN TERMS OF COST & QUALITY. LATER IN STUDY, DETAILS ON INTERNATIONAL SPECIFICATION STANDARDS SHALL BE DISCUSSED.

PROPOSAL:

PART 1: VISION & MISSION

VISION: “ ENGINEERING EXCELENCE”

MISSION: “PIONEERING THE STATE OF THE ART & ADVANCE IN THE FIELD OF RUBBER PROCESSING TECHNOLOGY.”

PART 2: SITUATION ANALYSIS

CRUMB RUBBER PROCESSING HAS BEEN INTRODUCED IN SIBUGAY BY GOODYEAR RUBBER FACTORY IN THE EARLY 1920’S. PRIOR TO THIS TECHNOLOGY, RUBBER WAS MAINLY PROCESSED THROUGH AIR DRY WHICH IS DONE THROUGH USING RUBBER ROLLERS BY HAVING IT CREPPED FIRST FOR MANY PASS UNTIL IT REACHES A CERTAIN BLANKET THICKNESS & HAVE IT AIR DRIED OR SMOKED FOR A CERTAIN PERIOD UNTIL IT ARRIVES INTO A CERTAIN PLACTICITY & LOW MOISTURE CONTENT. THIS METHOD OF PROCESSING IS SO SLOW THAT WHEN DEMAND OF DRIED RUBBER IN THE MARKET HAD INCREASED, RUBBER EXPERTS HAVE LEFT WITH NO CHOICE BUT TO INTRODUCE ANOTHER METHOD OF PROCESSING WHICH IS USING A CRUMB RUBBER DRIER. THIS TYPE OF TECHNOLOGY HAS BEEN INTRODUCED TO CATER THE CONSTANTLY INCREASING DEMAND OF RUBBER IN THE DIFFERENT INDUSTRIES.

IN THIS CONNECTION, THE RESEARCHER WOULD LIKE TO VENTURE INTO RUBBER PROCESSING FACTORY USING AN ADVANCE STATE OF THE ART TECHNOLOGY WHICH WILL ADDRESS THE ISSUE ON VOLUME OUTPUT WITHOUT SACRIFICING QUALITY. THIS FACTORY WILL EARN ITS INCOME BY ACCEPTING TOLL PROCESSING FEE FROM CUSTOMERS. BASICALLY THE PURPOSE OF ITS EXISTENCE IS TO PROVIDE PROCESSING SERVICES TO SMALLHOLDER PLANTATION, INDIVIDUAL FARMERS WITH SIGNIFICANT VOLUME, RAW RUBBER PROCUREMENT TRADERS, BIG CORPORATE RUBBER PLANTATIONS, RUBBER FARMING COOPERATIVES & ECT.

CURRENTLY, THERE ARE SOME ISSUES & CONCERNS THAT PHILIPPINE PROCESSING TECHNOLOGY DOES NOT MEET INTERNATIONAL STANDARDS. THAT IS THE MAIN REASON WHY OUR LOCAL COAGULATED CUPLUMP SUPPLY HAS BEEN EXPORTED TO MALAYSIA & THAILAND INSTEAD OF BEING PROCESSED HERE AND HAVE IT EXPORTED TO ENDUSERS TO COUNTRIES LIKE UNITED STATES, EUROPE & CHINA. BY PROVIDING LOCAL TRADERS WITH THIS TYPE OF TECHNOLOGY, THEY CAN COMMAND A HIGHER PRICE FOR THEIR PRODUCT INSTEAD OF EXPORTING IN RAW FORM.

COMPETITIVE ANALYSIS:

CURRENTLY THERE IS A NUMBER OF RUBBER PROCESSING COMPANIES OPERATING IN SIBUGAY. BUT THERE IS ONLY ONE DIRECT COMPETITOR WHICH IS PHILIPPINE PIONEER RUBBER PROCESSING CO ( PPRPC). THIS FACTORY IS BEING RUNNED BY A COOPERATIVE. ITS MAIN BUSINESS ALSO IS TO EARN THROUGH TOLL PROCESSING. THE REST OF THE FACTORIES ARE EXCLUSIVE & DOES NOT ACCEPT WALK IN CLIENTS WHO WOULD LIKE THEIR RUBBER PROCESSED WITHOUT COMMITMENTS OF SELLING IT TO THE FACTORY. THESE FACTORIES ARE MJ RUBBER, AMARESSA, STANDARD RUBBER & FJC RUBBER. THESE COMPANIES DOES NOT ACCEPT WALK IN CUSTOMERS. THEY PROCESS RUBBER FROM THEIR OWN & BROKER’S PROCUREMENT THEREFORE THEY ARE NOT CONSIDERED AS DIRECT COMPETITIORS. THEY MAY IN THE FUTURE OUTSOURCE PROCESSING SERVICES FROM THIS PROPOSED FACTORY IF IN CASE THEIR PLANT BECOMES OBSOLETE OR CAPACITY OUTPUT DOES NOT MEET WITH THEIR RAW RUBBER PROCUREMENT. ULTIMATELY THEY MAY BECOME FUTURE CLIENTS TOO.

PPRPC: STRENGHT

1. NO DIRECT COMPETITOR2. GOOD FACTORY LOCATION (ACCESSIBILITY)

WEAKNESSESS

1. LOW TECHNOLOGY2. NON ISO ACCREDITED3. DIRTY FACTORY4. UNSECURED WHAREHOUSE5. SLOW PROCESSING ( NON AUTOMATED )6. POOR FACTORY LAYOUT7. SECOND HAND EQUIPMENT ( HIGH MAINTENANCE )8. TROLLEY DRIER USED TIMBER WOOD AS FUEL ( HIGH ASH CONTENT IN

FINISHED PRODUCT )

9. NO LABORATORY10.BOTTOMLINE NO QUALITY GUARRANTY OF RUBBER PROCESSING.

THE PROPOSED HARVESTIME RUBBER PLANT

CONTRACTOR SUPPLIER: KC MARKETING & ENGINEERING SERVICES INC.

CRUMB RUBBER ( TSR ) PROCESSING EQUIPMENT – SPR 10/20

A. CAPACITY- 2,000 KG PER HOUR ( DRIED WEIGHT )

B. PROCESS- AUTOMATIC CREPING/ SHREDDING SYSTEM WHICH IS

PROVEN IN INDONESIA, MALAYSIA, THAILAND, PHILIPPINES & WEST AFRICA.

C. PROCESS FLOW- UPON RECEPTION AT THE FACTORY, THE RAW MATERIALS

IN VARIOUS FORMS OF CONGLOMERATED LUMPS, SCRAPS, BLOCKS & SLABS FROM SMALL FARMERS OR ESTATE SOURCES ARE FIRST DRY BLENDED BY SOME MECHANICAL MEANS E.G. FRONT LOADER OR FORKLIFT.

- THE BLENDED MATERIALS ARE PRE-SOAK IN THE WASH TANK NO. 1 BEFORE PROCESS THROUGH THE SLAB CUTTER, WHICH CUTS, TEAR AND BLEND THE CUP LUMPS/SCRAPS AND DISCHARGING DIRECTLY INTO WASH TANK 2. THE SIZE OF THE RAW MATERIALS WILL BE REDUCED AND THIS SERVES TO PROVIDE EFFICIENT BLENDING & WASHING OF THE RUBBER. VERY HIGH DIRT REMOVAL RATE IS ACHIEVED IN THIS FIRST PROCESSING PASS.

- THE BLENDING AND WASHING PROCESS CONTINUES FURTHER IN THE NEXT TWO (2) STAGES BY MEANS OF A HAMMER MILL AND HOMOGENIZER, AT EACH PROCESSING STAGE, THE RUBBER GRANULES WILL BE PROGRESSIVELY REDUCE IN SIZE, THOROUGHLY BLENDED AND WASHED. ESPECIALLY AT THE HOMOGENIZER, THE RUBBER GRANULES ARE WELL SHEARED, BLENDED INTO A FUSED FORM THAT IS EASILY DIGESTED BY THE FIRST CREPER.

BUCKET CONVEYORS ARE USED AT EACH STAGE TO FACILITATE TRANSFER OF MATERIALS.

- THE CRUMBS ARE THEN PROCESSED THROUGH A BATTERY OF CREPERS. CAREFULLY SELECTED FRICTION RATIOS, ROLL SPEED AND FACE PATTERN ENSURES GOOD AND EVEN SHEARING WHICH IS CRITICAL FOR UNIFORM DRYING. THE USE OF 8 CREPERS ARRANGED IN TANDEM WITH AN INTERMIDIATED SHREDDER AND CONNECTED BY BELT CONVEYOR SYNCHRONIZED WITH SPEED CONTROLLERS WILL ENSURE HIGH PRODUCTIVITY AND FULL AUTOMATION.

- THE FINAL RUBBER SHEETS/CREPES ARE NEXT TRANSFERRED BY BELT CONVEYOR TO A FINAL COMMUNICATION MACHINE CALLED FINAL SHREDDER. HERE, THE RUBBER IS PULVERIZED TO A UNIFORM SIZE SUITABLE FOR THE DRYING PROCESS. THE SHREDDER IS MOUNTED ABOVE A WASH TANK NO. 3 WHICH IS EQUIPPED WITH A SPRAY PUMP TO FACILITATE WASHING & CRUMB TRANSFER.

- TRANSFER OF THE FINAL CRUMBS TO THE DRYER IS DONE AUTOMATICALLY BY A VORTEX TRANSFER PUMP AND VIBRATING SCREEN.

- AT THE DISCHARGE END OF THE DRYER, THE BOXES OF DRIED RUBBER ARE COOLED IN A COOLING CHAMBER.

- DRIED RUBBER NOW IN FORM OF BISCUITS CONFIRMING TO THE SHAPES OF THE PRESS CHAMBER ARE PREWEIGHED TO 33.33KG AND BALED IN A 60 TON HYDRAULIC PRESS. THE BALED RUBBER ARE THEN WRAPPED IN POLYTHELENE BAGS AND PACKED IN LOTS OF 30 OR 36 BALES PER CRATE READY FOR EXPORT.

D. ELECTRICAL POWER FOR 2000 KG DR/HRHP

1 SLAB CUTTER 601 ROTARY CUTTER 758 CREPERS 5@30 / 3@5O 3001 HOMOGENIZER 601 DRYER 1602 SHREDDER 1601 PRESS 151 TRANSFER PUMP 202 SPRAY PUMP 208 BELT CONVEYOR 245 BUCKET ELEVATOR 205 PADDLE 15

1 VIBRATING SCREEN 3

TOTAL CONNECTED HP 922

ESTIMATED CONSUMED HP : 922 X 0.60 = 553.2 HPESTIMATED CONSUMED KW : 553.2 X 0.746 = 412.6ALLOW 50 KW FOR FACTORY, WORKSHOP AND OTHER USES.TOTAL POWER REQUIRED IS APPROX : 45O KW

E. LABOR- DIRECT LABOR EMPLOYED IN THE PROCESS LINE ARE

LOCATED AS FOLLOWS

LOCATION NO. OF PERSONS

RAW MATERIALS RECEPTION AREARECEIVING, SORTING, HANDLING & TRANSFER 3BLENDING TANKS 1DRYER 2WEIGHING, PRESS & PACKING 6

TOTAL 12 MEN

F. BUILDING- A BUILDING OF 84 FT X 24 FT WOULD BE SUFFICIENT TO

HOUSE THE 2 TONNES DR PER HOUR PROCESSING LINE OF MACHINERY

EQUPMENT COST IN $ USD.

A. MAIN MACHINERY

QUANTITTY DESCRIPTION UNIT PRICE

TOTAL PRICE

A)

5 Units

5 Units

1 Unit

1 Unit

1 Unit

5 Units

3 Units

8 Units

2 Units

1 Unit

2 Units

Supply of crumb Rubber (TSR) Processing Machinery and Electrical Control Boards-Capacity 2 Tonnes DR per hour

MAIN MACHINERY

Horizontal paddle complete with 50mmO main shaft, 3HP motor and gearbox

Bucket Conveyor complete with stainless steel discharge chute 3HP motor and gearbox

Slab Cutter complete 150mm rotor with 12 nos. rotating knives, and 60 HP motor and gearbox

Homogenizer complete with die plate, 60 Hp motor and gearbox

Rotary Cutter complete with rotor with fixed knives, 75HP motor and Hopper

Crepers complete with 30”rollers, 30HP motor and gearbox.

Crepers complete with 50”rollers, 30HP motor and gearbox.

Variable Speed Belt Conveyor 24”wide complete with 3 Hp motor and gearbox with speed controller.

Shredder complete with 30” width cutter roll, 75 HP motor, 4” feed roll with 7 ½ HP motor and gearbox.

Crumb Rubber Transfer pump complete with stainless steel impeller, 25 Hp motor, 4’ delivery and 8” return PVC and support.

Spray Pump complete with 5 HP motor, stainless steel filter, piping and fittings.

US $

1,980.00

4,660.00

16,420.00

18,600.00

14,600.00

13,300.00

13,900.00

3,310.00

12,800.00

4,100.00

1,620.00

US $

9,900.00

23,300.00

16,420.00

18,600.00

14,600.00

66,500.00

41,700.00

26,480.00

25,600.00

4,100.00

3,240.00

1 Unit

1 Unit

1 Unit

1 Unit

1 Set

B)

1 Unit

1 Unit

1 Lot

Filling Station complete with stainless steel vibrating screen, stainless steel mobile Hopper, mild steel platform and channel support.

2 tonnes of trolley dryer complete with 2 units of main fan, cooling fan, heating system, prefabricated insulated panels, 20 nos. trolley with stainless steel boxes of 28 compartments.

Predetermined weighing scale, DIGI electronics type with platform, 150kg. Capacity.

100 Tonnes Moving (twin) Chamber Baling Press Complete with 200mm main ram. All steel frame, hydraulic power pack and centralized control panel for automatic/manual operation

Packing system consisting of 2 stainless steel top storage table, packing roller conveyor, packing frame and stainless steel wrapping table.

ELECTRICAL

Electrical Control Board No. 2 Amp. Consisting of metering switch, incoming MBC and outgoing MBC, starter, DFB for factory lighting and small power for Wet End Machinery.

Wall Mounted Electrical Board No. 2 Amp consisting of metering switch for incoming and outgoing power for Dry End Machinery.

Remote Start/Stop switch for Wet End Machinery

Total Price ex-worksPacking & Handling into containers

Total FQB Port Klang MalaysiaEstimated freight to Manila

Total C&F Manila

8,650.00

126,000.00

1,470.00

22,100.00

1,960.00

36,500.00

3,800.00

1,500.00

8,650.00

126,000.00

1,470.00

22,100.00

1,960.00

36,500.00

3,800.00

1,500.00

452,420.00 6,000.00458,420.00 18,000.00476,420.00

FACTORY LOCATION:

THE FACTORY CAN BE SITUATED ANY PLACE IN SIBUGAY WHICH HAS A GOOD ACCESSIBLE LOCATION. POWER SUPPLY OF THE SAID LOCATION SHOULD ALSO MEET WITH THE FACTORY REQUIREMENTS IN ORDER TO SAFEGUARD ELECTRICS MOTORS FROM VOLTAGE DROP & FLUCTUATIONS. CONSULTATION WITH LOCAL ELECTRICAL ENGINEERS MIGHT OF GOOD HELP IN PLANNING & SCOUTING WITH A GOOD FACTORY LOCATION. ON THE OTHER HAND, ABUNDANT SUPPLY OF FRESH AND CLEAN WATER IS ALSO NECESSARY

TO MINIMIZE EXPENSES ON MONTHLY WATER BILLS AS RUBBER PROCESSING NEEDS AN ENOURMOUS VOLUME OF WATER IN WASHING AND DIRT REMOVAL OF RAW RUBBER. THE RESEARCHER HAS OPTED NOT TO SPECIFY ANY LOCATION AS THERE ARE A WIDE AVAILABLE FEASIBLE AREA FOR THE SAID PROJECT.

PROCESS FLOW CHART FOR AUTOMATIC CREPING/SHREDDING

CAPACITY: 2,000 KG PER HOUR

(Refer Drawing No. 1)

RUBBER LUMP -Raw materials in various form are first dry blended by a front loader or forklift.

PRE SOAKING TANK WT 1 -Blended materials are presoaked to remove surface dirt.

SLAB CUTTER -Primary Size reduction to a form suitable for washing and blending.

WASH TANK WT 2 -Wash Tank is equipped with Paddle to facilitate washing and blending

ROTARY CUTTER -Further size reduction of lumps to a form for further washing and blending.

BLENDING TANK BT 1 -Blending Tank BT1 is also equipped with Paddle to Facilitate washing and blending. Transfer of rubber to the Homogenizer is done by Bucket Elevator.

HOMOGENIZER -The size of rubber is further reduced and homogenized for efficient cleaning and blending.

BLENDING TANK BT 1 -Further cleaning and blending to ensure the quality meets the SMR standard. Tank is also equipped with paddle . Transfer of rubber to the creper is done by Bucket Elevator.

1st CREPER LINE -Consist of a battery of 3 crepers with selected roll groovings and shearing ratios so that the rubber is well sheared.

1st SHREDDER -Rubber sheets are fed into the 1st Shredder by a belt conveyor. Here the rubber sheet will be broken up into fine crumbs.

BLENDING TANK BT 3 -The fine rubber crumb will be thoroughly washed and blended.

2nd CREPER LINE -Consist of a battery of 5 creper with selected roll groovings and sheering ratios employed to work the rubber into a well sheared sheets.

2nd SHEREDDER -Rubber sheets are fed to the shredder by a belt conveyor. Here, the final crumbs are reduced to a suitable size for drying.

TRANSFER TANK BT 3 -Transfer Tank is used to facilitate transfer of rubber crumbs to the Dryer through the use of a Vortex transfer pump and vibrating screen .

DRYER -The crumb undergo a dying cycle of 2 ½ -3 hours.

WEIGHING SCALE -dried rubber are reweighed to 33.3kg.

PRESS - The 33.3kg loosed rubber are baled in a Hydraulic Press for packing.

CUPLUMP IN RAW FORM

SLAB CUTTER

BUCKET ELEVATOR FEEDING TO ROTARY CUTTER

BLENDING TANK OR WASH TANK

TO TRANSFER RUBBER BLANKET.

BELT CONVEYOR FEEDING RUBBER BLANKET TO SHREDDER

TROLLEY DRIER DRIED RUBBER IN BALES

DIGITAL WEIGHING SCALE33.33 KG PER BALE

100 Tonnes Moving (twin) Chamber Baling Press

FINANCIAL ANALYSIS.

THE PROFITABILITY OF THIS VENTURE IS VERY HIGH THOUGH THIS PROJECT IS VERY CAPITAL INTENSIVE BUT THE RETURN ON INVESTMENTS IS VERY PROMISING. THESE TOLL PROCESS SERVICE IS A NECESSISITY FOR THE LOCAL RUBBER INDUSTRY. INCLUDED IN THE PLAN ARE FORECASTED COMPUTUTATIONS OF PROJECTED REVENUE & OPERATING COST INCLUDING DEBT SERVICING ASSUMING BANKS WILL PROVIDE FINANCING TO MATERIALIZE THE SAID PROJECT. FINANCIAL COMPUTATIONS ARE PROVIDE IN THIS MARKETING PLAN IN SUCCEDING PAGES.

PART 3 – MARKETING STRATEGY & OBJECTIVES

MARKETING STRATEGY

GIVEN THE SCENARIO. PROSPECTIVE CLIENTS WOULD PREFER THEIR RUBBER PROCESSED IN THIS FACTORY SINCE THEY ARE GUARANTEED WITH THE BEST QUALITY. QUALITY IS A VERY SERIOUS CONCERN FOR RUBBER TRADERS. A GOOD QUALITY PROCESSED RUBBER CAN BE EASILY DISPOSED & HAVE A LONGER PERIOD OF STORAGE TIME. TIME IS ALSO A MAJOR CONCERN. EVERYBODY WANTS HIS RUBBER PROCESSED RIGHT AFTER

ARRIVING AT THE FACTORY. IN TERMS OF MILLING FEE PRICE, P 5.50 IS QUITE HIGH AS COMPARED TO PREVAILING RATE OF P4.75 TO P5.0 BUT THE DIFFERENCE IS COMPESATING WITH QUALITY IN TERMS OF SPECIFICATION. THIS FACTORY SHALL ALSO BE ACCREDITED WITH ISO STANDARDS SO THAT EVERYTHING THAT COMES OUT FROM THIS FACTORY SHALL HAVE A CERTIFICATE THAT THEIR RUBBER WAS PROCESSED IN THE SAID FACTORY.

SUMMARY:

RUBBER HAS THE MOST PROMISING INCOME IN ZAMBOANGA SIBUGAY. THE RESEARCHER BELIEVES THAT THERE IS REALLY A BIG POTENTIAL IN ESTABLISHING AN ADVANCE & STATE OF THE ART FACTORY SO THAT EXPLORING THE EXPORT MARKET FOR TRADERS SHALL BE EASY. ESPECIALLY IN THE ADVENT OF GLOBALIZATION & FREE TRADE, THIS EFFORT SHALL AID LOCAL TRADERS TO GO GLOBAL. MARKETING OF THIS TYPE OF TOLL SERVICE IS NOT A BIG PROBLEM. THIS VENTURE HAS A GUARANTEED MARKET WAITING IN LONG LINE. THIS VENTURE IS AN ANWER TO THE NEEDS OF CUSTOMERS WHO WANTS THEIR RUBBER PROCESSED IN THE BEST & WORLD CLASS QUALITY IN LINE WITH THE COMPANY’S VISION OF ENGINEERING EXCELENCE.PROJECTED CAPITALIZATION

HARVESTIME RUBBER

PROJECTED CAPITALIZATION: USD PHP

MAIN MACHINERY 410,620.00 ELECRICAL 41,800.00 PACKING & HANDLING 6,000.00 FREIGHT IN – FOREIGN 18,000.00 TOTAL C&F MANILA 476,420.00

FREIGHT IN LOCAL 20 VANS 400,000.00 INSTALLATION 15,000.00

AREA 1.5 HA. 1,000,000.00 BUILDING & FENCES 5,000,000.00 WORKING CAPITAL   3,500,000.00

491,420.00 9,900,000.00

CONVERSION RATE @ 45 22,113,900.00 9,900,000.00 32,013,900.00

WORKING CAPITALOFFICE SUPPLIES 30,000.00 COMPUTERS & COMMUNICATION 150,000.00

SERVICE VEHICLE 700,000.00 DELIVERY TRUCKS 800,000.00 SKID LOADER EQUIPMENT 1,000,000.00 CASH ON HAND 820,000.00

3,500,000.00

NOTE:

WORKING CAPITAL WAS BREAKDOWN TO FOLLOWING USAGE AS OFFICE SUPPLIES, COMPUTER & COMMUNICATION, SERVICE VEHICLE, DELIVERY TRUCKS, FORKLIFT EQUIPMENT & CASH ON HAND. THE CORRESPONDING AMOUNT ARE BASED ON ESTIMATES FOLLOWING THE RULE ON CONSERVATISM. THESE AMOUNTS ARE WAY TOO HIGHER THAN WHAT SHALL BE SUPPOSEDLY MAY BE INCURRED ON ACTUAL OPERATIONS.

PROJECTED MILLING FEE COST PER KILOHARVESTIME RUBBER

ASSUMPTIONSPOWER RATE IS P 7.00 / KW HR2 8 HRS SHIFTINGS PER DAY2 TONS PER HOUR OUTPUT6 DAYS OPERATION A WEEK

COST UNIT PRICE OUTPUT UNIT COSTELECTRICAL POWER 450 KW 7.00 3,150.00 2000 KG 1.575

DIESEL FOR TROLLEY DRIER40 LITER/HR 1,600.00 1,600.00 2000 KG 0.8

DIRECT LABOR 12 MEN 250.00 3,000.00 2000 KG 1.5

INDIRECT LABORMONTHLY S/W MONTHLY OUTPUT UNIT COST

1 FACTORY MANAGER 50,000.00 3 SUPERVISORS 24,000.00 416 HOURS2 QUALITY CONTROLER 16,000.00 2 TONS/ HR3 CLERKS 24,000.00 832,000.0 DRY RUBBER6 SECURITY 36,000.00 2 ELECTRICIAN 16,000.00 2 MAINTENANCE 12,000.00

178,000.00 FACTORY OVERHEAD 0.21 4.09

MILLING FEE COST PER KILO 4.25

NOTE: MILLING FEE COMPUTATION WAS ROUND OFF TO P 4.25 PER KILO FROM P 4.09 TO GIVE WAY FOR SOME ADJUSTMENTS & OTHER MINOR EXPENSES THAT MAY BE INCURRED DURING THE OPERATIONS. ON THE OTHER HAND POWER COST WAS ESTIMATED AT P 7.00 PER KW/HR BUT ACTUAL POWER RATE DOES NOT EXCEED THE ESTIMATE. FOR FURTHER INFORMATION ZAMSURECO POWER RATE IS INCLUDED IN THE ANNEX OF THIS MARKETING PLAN.

PROJECTED AMORTIZATION SCHEDULE

HARVESTIME RUBBER

PROJECTED AMORTIZATION SCHEDULE

ASSUMPTION: CAPITALIZATION: 32,013,900.00 LOAN INTEREST @ 10% PER ANUMLOAN FROM BANK 70% 22,409,730.00 INVESTMENT OF STOCKHOLDERS 30% 9,604,170.00

32,013,900.00

36 MONTHS AMORTIZATION SCHEDULE

  PRINCIPAL AMORTIZATION INTEREST TOTAL1 22,409,730.00 622,492.50 186,747.75 809,240.25 2 21,787,237.50 622,492.50 181,560.31 804,052.81 3 21,164,745.00 622,492.50 176,372.88 798,865.38 4 20,542,252.50 622,492.50 171,185.44 793,677.94 5 19,919,760.00 622,492.50 165,998.00 788,490.50 6 19,297,267.50 622,492.50 160,810.56 783,303.06 7 18,674,775.00 622,492.50 155,623.13 778,115.63 8 18,052,282.50 622,492.50 150,435.69 772,928.19 9 17,429,790.00 622,492.50 145,248.25 767,740.75

10 16,807,297.50 622,492.50 140,060.81 762,553.31 11 16,184,805.00 622,492.50 134,873.38 757,365.88 12 15,562,312.50 622,492.50 129,685.94 752,178.44 13 14,939,820.00 622,492.50 124,498.50 746,991.00 14 14,317,327.50 622,492.50 119,311.06 741,803.56 15 13,694,835.00 622,492.50 114,123.63 736,616.13

16 13,072,342.50 622,492.50 108,936.19 731,428.69 17 12,449,850.00 622,492.50 103,748.75 726,241.25 18 11,827,357.50 622,492.50 98,561.31 721,053.81 19 11,204,865.00 622,492.50 93,373.88 715,866.38 20 10,582,372.50 622,492.50 88,186.44 710,678.94 21 9,959,880.00 622,492.50 82,999.00 705,491.50 22 9,337,387.50 622,492.50 77,811.56 700,304.06 23 8,714,895.00 622,492.50 72,624.13 695,116.63 24 8,092,402.50 622,492.50 67,436.69 689,929.19 25 7,469,910.00 622,492.50 62,249.25 684,741.75 26 6,847,417.50 622,492.50 57,061.81 679,554.31 27 6,224,925.00 622,492.50 51,874.38 674,366.88 28 5,602,432.50 622,492.50 46,686.94 669,179.44 29 4,979,940.00 622,492.50 41,499.50 663,992.00 30 4,357,447.50 622,492.50 36,312.06 658,804.56 31 3,734,955.00 622,492.50 31,124.63 653,617.13 32 3,112,462.50 622,492.50 25,937.19 648,429.69 33 2,489,970.00 622,492.50 20,749.75 643,242.25 34 1,867,477.50 622,492.50 15,562.31 638,054.81 35 1,244,985.00 622,492.50 10,374.88 632,867.38 36 622,492.50 622,492.50 5,187.44 627,679.94

      3,454,833.38 25,864,563.38

PROJECTED PROFIT & LOSS

HARVESTIME RUBBER

PROJECTED PROFIT & LOSS

ASSUMPTIONSMILLING FEE @ 5.5 PER KILO2 8 HRS SHIFTINGS PER DAY2 TONS PER HOUR OUTPUT OR 32 TONS A DAY6 DAYS OPERATION A WEEK

MONTHLY SALES COST GROSS AMORTIZATION NET1 4,576,000.00 3,536,000.00 1,040,000.00 809,240.25 230,759.75 2 4,576,000.00 3,536,000.00 1,040,000.00 804,052.81 235,947.19 3 4,576,000.00 3,536,000.00 1,040,000.00 798,865.38 241,134.63 4 4,576,000.00 3,536,000.00 1,040,000.00 793,677.94 246,322.06 5 4,576,000.00 3,536,000.00 1,040,000.00 788,490.50 251,509.50 6 4,576,000.00 3,536,000.00 1,040,000.00 783,303.06 256,696.94 7 4,576,000.00 3,536,000.00 1,040,000.00 778,115.63 261,884.38 8 4,576,000.00 3,536,000.00 1,040,000.00 772,928.19 267,071.81 9 4,576,000.00 3,536,000.00 1,040,000.00 767,740.75 272,259.25

10 4,576,000.00 3,536,000.00 1,040,000.00 762,553.31 277,446.69 11 4,576,000.00 3,536,000.00 1,040,000.00 757,365.88 282,634.13 12 4,576,000.00 3,536,000.00 1,040,000.00 752,178.44 287,821.56 13 4,576,000.00 3,536,000.00 1,040,000.00 746,991.00 293,009.00

14 4,576,000.00 3,536,000.00 1,040,000.00 741,803.56 298,196.44 15 4,576,000.00 3,536,000.00 1,040,000.00 736,616.13 303,383.88 16 4,576,000.00 3,536,000.00 1,040,000.00 731,428.69 308,571.31 17 4,576,000.00 3,536,000.00 1,040,000.00 726,241.25 313,758.75 18 4,576,000.00 3,536,000.00 1,040,000.00 721,053.81 318,946.19 19 4,576,000.00 3,536,000.00 1,040,000.00 715,866.38 324,133.63 20 4,576,000.00 3,536,000.00 1,040,000.00 710,678.94 329,321.06 21 4,576,000.00 3,536,000.00 1,040,000.00 705,491.50 334,508.50 22 4,576,000.00 3,536,000.00 1,040,000.00 700,304.06 339,695.94 23 4,576,000.00 3,536,000.00 1,040,000.00 695,116.63 344,883.38 24 4,576,000.00 3,536,000.00 1,040,000.00 689,929.19 350,070.81 25 4,576,000.00 3,536,000.00 1,040,000.00 684,741.75 355,258.25 26 4,576,000.00 3,536,000.00 1,040,000.00 679,554.31 360,445.69 27 4,576,000.00 3,536,000.00 1,040,000.00 674,366.88 365,633.13 28 4,576,000.00 3,536,000.00 1,040,000.00 669,179.44 370,820.56 29 4,576,000.00 3,536,000.00 1,040,000.00 663,992.00 376,008.00 30 4,576,000.00 3,536,000.00 1,040,000.00 658,804.56 381,195.44 31 4,576,000.00 3,536,000.00 1,040,000.00 653,617.13 386,382.88 32 4,576,000.00 3,536,000.00 1,040,000.00 648,429.69 391,570.31 33 4,576,000.00 3,536,000.00 1,040,000.00 643,242.25 396,757.75 34 4,576,000.00 3,536,000.00 1,040,000.00 638,054.81 401,945.19 35 4,576,000.00 3,536,000.00 1,040,000.00 632,867.38 407,132.63 36 4,576,000.00 3,536,000.00 1,040,000.00 627,679.94 412,320.06

164,736,000.00 127,296,000.00 37,440,000.00 25,864,563.38 11,575,436.63

HARVESTIME RUBBER

MILLING FEE COST 4.25MILLING FEE COST ACTUAL 4.09DIFFERENCE 0.16

MONTHLY OUTPUT 832,000.00 0.16

133,120.00

A. EQUIPMENT MAINTENANCEB. TRAINING & SEMINARSC. HUMAN RESOURCE DEVELOPMENTD WASTE DISPOSSAL & WATER TREATMENTE. INSURANCE OF MACHINERIES & EQUIPMENTF. DOWNTIME

ROI 11,575,436.63 1.21 AFTER 3 YEARS

9,604,170.00

MARKETING PLAN

HARVESTIME RUBBER

SUBMITTED TO:

Ford IFP Alumni Association

SUBMITTED BY:

JOSE C. POLICARPIO, JR. Consortium for the Development of

Western Mindanao Communities, Inc.