Angela Roquero

SETUP Project Proposal Format PROJECT TITLE:Technology Upgrading of MBX Grapes Vineyard PROPONENT: Maria Candelaria Caballes PROJECT COST: 2,574,000 AMOUNT REQUESTED: P1,500,000 EQUITY:1,074,000 OBJECTIVES: General Objectives: Increase efficiency by implementing modern and advanced technologies that can speed up the entire process while still catering to a growing demand. Specific Objectives: To be the first direct supplier of our own local product of grapes wine in the entire Philippines. To develop local tourist attraction and produce high quality locally made products. To provide employment and job opportunities PROJECT BACKGROUND: A. Company Profile: Name of Firm MBX Grapes Vineyard Address Purok Wal, Tambler, General Santos City Contact Person Maria Candelaria Caballes Contact No- e-mail Address-Year established 2014 (DTI & public 2017) Type of Organization (please check appropriate box in each row) √ Single Proprietorship Partnership Cooperative Corporation Profit Non-Profit √ Micro (P3M Total Asset Value or less) Small (P3,000,001 – P15M Total Asset Value) Medium (P15,000,001 – P100M Total Asset Value) Number of Employee (Please indicate number of employee) Type of Employment Male Female Total Direct Workers Production 7 6 13 Non-Production 2 2 Indirect/Contract Workers 1 1 Total 8 8 16 Registration Office Registration Number Date of Registration DTI- Business Activity/ies: (please check appropriate box) Food Processing Furniture Metals & Engineering √ Agriculture/ Marine/ Aquaculture Gifts, decors, handicraft Others, please specify: Products/Services Jam, Jelly, pickled grapes, wine, Vinegar (cider) Brief Enterprise Background Friend encouraged her to plant grapes. Technician helped. B. Management/Administrative Aspect 1. Organizational chart 2. Skills and expertise of employee/owner (proponent) The owner herself learned the basic of planting grapes seedling from a grape farmer. The owner has spent more than 4 years growing grape fruits and crops and other grapes by products. She also attends seminars ang programs conducted by the department of trade and industry. Aside from that, she also hires experts such as grapes farm technician and agricultural engineers to ensure best and high-quality grapes. Production staff and helpers are equipped with basic knowledge in grapes farming that helps to continuously sustain the quality of the product. Skills expertise of employee/owner (proponent) a. owner -Manages the whole farm. b. Grapes Technician -Inspect incoming produce product for quality and condition to a minimum Standard. -Quality inspections consist of: size, weight, brix, color, taste, decay, etc. -interacts professionally to our clients and suppliers c. Production Staff - Tilling soil and applying fertilizers; transplanting, weeding, thinning, or pruning crops; applying pesticides; cleaning, packing, and loading harvested products. May construct trellises, repair fences and farm buildings, or participate in irrigation activities. d. Finance Officer -manages financial matters of the farm -payroll in-charge 3. Compensation Since most of the workers are Indigenous People, they are not compensated with government benefits but they are payed on a weekly basis. They also receive 1 sack of rice every month and for stay in employees they are provided with food, water and electricity needs. Year-end bonus is also given. C. Plant site or location (including vicinity map) D. Capacity, volume and cost of production Product Capacity/Volume (per harvest) Cost/Harvest (P) Wine 1 liter 2 kilos (150-200 bottles 600 Grapes Cider Vinegar 500 bottles 180 Grapes Jam 150 jam 180 E. Raw material/s used and sources of raw material Raw Materials Source Grapes MBX Grapes Vineyard Yeast, sugar Public Market Garlic, cinnamon powder Public market MARKETING ASPECTS A. Market situation, product demand and supply The enterprise was performing well before COVID19 pandemic came with 500,000 Sales per week (100,000 per day) even without proper promotion of the farm and the product yet, there are company from Davao and Manila that is interested to buy the farm’s products. It takes the grapes less than 3-4 months to bloom unlike the normal blooming of 6 months. As of now, there are no other farm that produces grapes by products in General Santos City. B. Product specifications and product price PRODUCTS PRODUCTS SPECIFICATION SELLING PRICE WINE 750ml P600 GRAPES CIDER VINEGAR 350ML P180 GRAPES JAM 150ML P150 GRAPES JELLY 150ML P150 C. Distribution channel (local/export) We distribute our products to General Santos City, Davao and Manila market retailer outlets. The farm is also open for visitors from outside the City. D. Competitors No identified competitor locally when it comes to producing grapes by products. E. Existing problems (if any) Insufficient Machine and Equipment F. Market plans/strategies As of now it is expected that the farm will have its full bloom on September 2021, and is ready for harvest. The farm will initiate pick and pay policy. The kilo of grapes picked by the customers is equivalent to a certain amount. As the owner possesses three (3) farms, the two other farms will be the source for producing grapes by products such as wine, vinegar, jam and jelly. And the other farm will serve as the nursery. Hence, it will make General Santos City as a local distributor of grapes by product. Social Media posting is also considered to cater potential customers. TECHNOLOGICAL ASPECTS A. Production Process MANUFACTURING PROCEDURES Receiving Washing Cleaning Weighing Blending Mixing Cooling Sterilization Filling Sealing Labeling Boxing Distribution B. Existing Production Equipment The table below shows the current machinery being used in the operation of Chico’s Food Products. EQUIPMENT QTY. AMOUNT TOTAL Blender 4 2,000 8,000 Stove 1 3,000 3,000 Refrigerator 1 20,000 20,000 Freezer 1 13,000 13,000 Stainless Pot- Steamer- Oven 3 3,300 9,900 Sealer gun- Spatula- Strainer- Containers 1 5,000 5,000 Service Van 1 600,000 600,000 TOTAL P661,449 C. Technical constraints on the production line and proposed S&T intervention Process/ Existing Practice/ Problem Proposed S&T Intervention Proposed S&T intervention-related equipment / skills upgrading Impact Grapes are in need of so much water in order to fully grow. Due to the lack of water pump, it takes longer time for the grapes to grow. Windmill Water System and Deep Drilling will help to fully boost the grapes production through faster and massive flow of water. Windmill Water System with Deep Drilling. An average windmill (6 to 8 foot-diameter wheel) spinning in a brisk breeze (15 to 20 mph) will pump about three gallons a minute whenever the wind blows (about 35 percent of the time in many areas). That adds up to about 1500 gallons a day. Another example of output could be calculated by using a 10 to 12-foot wheel pumping against a theoretical 100-foot head (the column of water lifted from the static water level to the tank) -Time Efficient and will increase production. -Shorter Harvest Period. . Propose Plant Lay-out – please refer to attached vicinity map D. Cost and specification of S&T Intervention-Related Equipment S&T Intervention-related equipment/specification Qty Unit Cost Total Cost Windmill Water System 1 956,000 956,000 Deep Well Drilling 1 1,618,000 1,618,000 TOTAL 2 2,574,000 E. List of equipment fabricators (name and address) Flowing Vent Metal Craft Services- Bago Aplaya, Davao City. Hydrockwells Incorporated- Agdao, Davao City. KGD Builders- San Isidro, General Santos City F. Schedule of activities for the proposed project Activities Jan. Feb. Mar. Apr. May Jun. Jul Aug. Sep. Oct. Nov. Dec. Preparation of the business proposal Equipment Arrival ARRIVAL OF EQUIPMENT SEPTEMBER-DECEMBER HARVEST AND PRODUCTION SEASON JANUARY-APRIL 2021 DISTRIBUTION OF BY PRODUCTS MAY 2021 FIRST PAYMENT OF THE SET-UP LOAN G. Expected Output/Impact (measured results) Percentage increase in productivity Improved quality of product/s Contribution to the production line/process Percentage decrease in rejects Promotes tourism Additional clients General Santos City will be known as a producer and supplier of Grapes by products. WASTE MANAGEMENT/DISPOSAL A. Volume of waste generated monthly Water waste sediments only which are immediately thrown away. B. Kinds of wastes (plastics, paper, metals, chemicals, pollutants, etc.) Water waste sediments from cleaning raw materials. The excess from grapes peelings are used as fertilizers. Non-Biodegradable waste are bottles and papers from product label. C. Methods of disposal Used bottles are immediately disposed and not reused to be pick up by the city waste management. Water waste sediments that are used for cleaning the raw materials and equipment are directly thrown to the septic tank. Papers and other irrelevant waste are segregated in the trash can that has different pick up schedule by the city waste management. Excess waste from grapes such as peelings are used as fertilizers. FINANCIAL ASPECT A. Financial capacity a. Investment decision analysis Return on investment measures the percentage gain in relation to the capital invested. With the total initial investment of 1,500,000 pesos, a return on investment (ROI) of 67% it is worthwhile that the proponent will proceed with the proposed expansion. The table shown below depicts the return on investment of the business. ROI Year Net Income 1 293,-,074,-,158,-,-,476,160 Total Income 4,995,592.00 Divide: Life of the Critical A 5 Average Income 999,118.40 Investment Income 1,500,000 ROI 67% Turnover Ratio Analysis Turnover = Revenue Total Asset Year 1 Year 2 Year 3 Year 4 Year 5 3,830,150.00 4,800,530.00 4,754,600.00 4,750,340.00 4,980,550.00 12,631,260.00 12,844,200.00 11,891,250.00 11,621,960.00 12,381,930.00           =0.30 =0.37 =0.40 =0.41 =0.40 b. Liquidity ratio Liquidity ratios are an important class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital. Liquidity ratios measure a company's ability to pay debt obligations and its margin of safety through the calculation of metrics including the current ratio, quick ratio, and operating cash flow ratio. With liquidity ratios, current liabilities are most often analyzed in relation to liquid assets to evaluate the ability to cover short-term debts and obligations in case of an emergency. Cash Returns = Net Income + Depreciation Expense = 268,136.80 + 155,690.00 = 423,826.80 c. Payback Period The payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment reaches a break-even point. The enterprise will be able to recover the total investment cost of 1,500,000 pesos in approximately (3) three years and (5) five months. Despite the fact that the payback period does not reflect the time value of money, the result is still favorable to the business since the investment will be recovered less than the life of the investment which is five years. Refer to the table shown on the next page for the detailed computation of the payback period. Payback Period = Investment/Cash Returns = 1,500,000 / 423,826.80 = 3.54 or 3 years d. Leverage Ratios The table presented on the next page reveals the leverage ratios of the business. These ratios determine the proportion of how assets are financed between debt which indicates the firm’s stability. Leverage Ratio Analysis Leverage ratio = Total Debts Total Assets Year 1 Year 2 Year 3 Year 4 Year 5 2,406,690.00 2,397,200.00 2,357,300.00 2,307,280.00 3,567,200.00 12,631,260.00 12,844,200.00 11,891,250.00 11,621,960.00 12,381,930.00           0.19 0.19 0.20 0.20 0.29 B. Financial constraints -The challenge brought about by the Covid-19 pandemic. C. Cash flow/ financial statement/ balance sheet – please see attached file D. Budgetary Requirement for the proposed project Item of Expenditure Qty Unit Cost Cost SETUP Cooperator Total Deep Well Drilling 1 1,618,000 1,000,000 618,000 1,618,000 Windmill Water System 1 956,000 500,000 456,000 956,000 Total 1,500,000 1,074,000 2,574,000 (note: cost-sharing of an item is not allowed due to issue on ownership)3 E. Proposed Refund Schedule Months Y1 Y2 Y3 Y4 Y5 Total January- February- March- April- May- June- July- August- September- October- November- December- Total- P2,574,000 (note: Refund schedule shall be within a period of three (3) to five (5) years depending on the nature/amount of project. Cooperator may opt to purchase all the equipment at the end of the refund period at one-half of one percent of the equipment acquisition cost.) *Proposed Vicinity Map Exhibit 1 MBX Grapes Vineyard Projected Balance Sheet For Five Years ASSETS Year 1 Year 2 Year 3 Year 4 Year 5 Current Assets: Cash 3,460,790.00 3,567,400.00 3,390,700.00 3,300,500.00 3,690,450.00 Inventory 720,040.00 735,900.00 700,350.00 780,570.00 690,900.00 Total Current Assets 4,180,830.00 4,303,300.00 4,091,050.00 4,081,070.00 4,381,350.00 Non-Current Assets Property and Equipment 8,450,430.00 8,540,900.00 7,800,200.00 7,540,890.00 8,000,580.00 Total Assets 12,631,260.00 12,844,200.00 11,891,250.00 11,621,960.00 12,381,930.00 LIABILITIES Current Liabilities: Trade and Other Payables 2,400,190.00 2,390,700.00 2,350,800.00 2,300,780.00 3,560,700.00 Income Tax Payable 6,500.00 6,500.00 6,500.00 6,500.00 6,500.00 Total Liabilities 2,406,690.00 2,397,200.00 2,357,300.00 2,307,280.00 3,567,200.00 CAPITAL Caballes, Capital 10,224,570.00 10,447,000.00 9,533,950.00 9,314,680.00 8,814,730.00 TOTAL LIABILITIES & CAPITAL 12,631,260.00 12,844,200.00 11,891,250.00 11,621,960.00 12,381,930.00 Exhibit 2 MBX Grapes Vineyard Projected Income Statement For Five Years Revenues: Year 1 Year 2 Year 3 Year 4 Year 5 Revenues 3,830,150.00 4,800,530.00 4,754,600.00 4,750,340.00 4,980,550.00 Less: Cost of Sales 3,100,000.00 2,975,430.00 2,800,000.00 3,020,600.00 2,590,720.00 Total Income 730,150.00 1,825,100.00 1,954,600.00 1,729,740.00 2,389,830.00 Less: Operating Expenses Depreciation 130,540.00 110,040.00 120,000.00 130,000.00 100,430.00 Entertainment, Amusement, & Recreation 20,300.00 20,300.00 20,300.00 20,300.00 20,300.00 Communication, Light, & Water 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 Fuel and Oil 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 Miscellaneous 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 Office Supplies 4,000.00 3,950.00 3,600.00 4,500.00 4,300.00 Repairs and Maintenance 52,000.00 52,000.00 52,000.00 52,000.00 52,000.00 Total Operating Expenses 310,840.00 290,290.00 299,900.00 310,800.00 281,030.00 Income Before Tax 419,310.00 1,534,810.00 1,654,700.00 1,418,940.00 2,108,800.00 Less: Tax - 30% 125,793.00 460,443.00 496,410.00 425,682.00 632,640.00 Net Income 293,517.00 1,074,367.00 1,158,290.00 993,258.00 1,476,160.00