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EXECUTIVE SUMMARY OF THE PROJECT

A. Name of the company

The company is directed to be established as one of the top activated carbon

manufacturers in the country and shall be named, “Carbon Plus Corporation”. Its main

product is activated carbon which is use in the purification process of substances such as

in water treatment and oil mill refineries.

Carbon Plus Corporation is a stock corporation generally established to satisfy the

lack of supply in activated carbon matching the vast increasing demand for it. Thus,

Carbon Plus Corporation will be the first manufacturer of activated carbon in Quezon

Province.

B. Location

Carbon Plus Corporation will have its own plant near Tayabas-Pagbilao Road,

Quezon and main office at Brgy. Isabang Lucena City, Quezon. The plant location will

perfectly suit the nature of the corporation, which is to make coconut shell-based carbons

and since Quezon is one of the top coconut producing region, raw materials are readily

available and accessible at the same time.

C. Brief Description of the Project

Carbon Plus Corporation saw the felt need on purification these days as our world

becomes more polluted. Everything must be sanitized first before it gets to the final users

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of the product. Before coming up with the final good, other manufacturers and producers

sanitize first their product offerings making sanitation processes in demand.

Carbon Plus Corporation also saw the great difference in demand and supply of

activated carbon. There is a very great demand on activated carbon as it caters to almost

all industries, but such low and lacking supply.

In line with this, the corporation wanted to fill the gap and manufacture activated

carbon to be of help to these manufacturers, small or big, meet their product standards at

the same time lower their production cost. Thus, the great difference between the supply

and demand of activated carbon in the Philippines will hopefully be addressed.

D. Market Feasibility

Being the first manufacturer of activated carbon here in Quezon, provides the

company the assurance of favorability of consumers as they would prefer availing

products that can minimize their cost of transportation and handling. Aside from that,

Carbon Plus Corporation will be the first corporation to manufacture powderized AC in

CALABARZON which is to be patronized by oil refineries, one of the most popular

businesses in Quezon.

Carbon Plus Corporation will also offer AC in a much lower price compared to

those existing manufacturers of AC. Since Carbon Plus has all the available resources in

its vicinity, they can provide low manufacturing costs and eventually provide a much

lower price to consumers with a much bigger volume of activated carbon. Meaning to

say, if one corporation limits their use of activated carbon to, for example, 10% only

because that is what their budget and other circumstances can afford, given the same

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circumstances and budget, Carbon Plus Corporation can give them higher percentage of

use.

In addition, CALABARZON is a region that has booming industries. Many

industrial plants and factories are located in here. As a result, there is a big market ready

to consume AC as it is used in many sectors. Thus, there is a very big demand for

activated carbon. While on the other hand, the supply in activated carbon for the whole

region is lacking. Like for example, here in Quezon, where there are numerous coconuts,

no one produces activated carbon. Therefore, the gap between the demand and supply of

activated carbon shall be tapped by the entrance of Carbon Plus Corporation thereby

having a certainty in the market.

E. Management Feasibility

The role of the management is to move an organization towards its purposes or

goals by assigning activities for the organizational members to perform. It will consist of

persons with relevant knowledge and dedication to his or her work.

Marketing managers maintain a sales force that markets goods. Human resource

managers provide organizations with a competent and productive workforce. Productions

managers run manufacturing operations and the Chief Accountant manages the financials

of the corporation.

The Board of Directors will serve as the primary decision-making body tasked to

appoint the top management and to make major decisions. The top level managers,

headed by the chief executive officer are the ones in charge of decisions that will affect

the company in the long run. The middle managers will be in charge of tactical

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management and the implementation of plans and decisions in their departments. Rules

and procedures for directing and controlling the employees will be carefully established

and will be followed for the proper execution of operations towards achieving their goal.

F. Technical Feasibility

Carbon Plus Corporation will produce activated carbon suitable for purification

and adsorption purposes. The manufacturing process involves seven general stages;

screening, oxidizing, activation, cooling, distoning, granulation and sizing. Screening

stage involves removal of tiny particles of charcoal so as to minimize particle emission in

the air. The oxidizing process involves the activation of the charcoal through the steam

process at a temperature ranging from 900o C to 1100 o C. After the activation, the

cooling stage follows so as to thoroughly extinguish the fire to avoid accidents. Distoning

stage is the process of removing or collecting the powdered carbon as a result of the

activation, which will be subject for sale to oil refineries. Granulation stage reduces the

size of the carbon based on our offering, the powder for oil refineries and the granular for

water treatment. After the granulation, sizing stage follows wherein the carbon are

segregated according to their size. Afterwards, the finished product will undergo quality

control and the packaging process. The entire process will be done by machines, powered

by electricity and operated by machine operators.

The company will develop its building plan where the factory machineries will be

placed and utilized according to the manufacturing processes. The company will have

only one direct raw material which is coconut shell charcoal which will be purchased

from charcoal suppliers near the area.

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G. Financial Feasibility

The data gathered from persons, institutions, and other relevant organizations

related to the business are the bases on the assumptions made in the financial aspect of

the study. The financial aspect is concerned with the recording of the business

transactions, making assumptions about the profitability of the business and preparation

of financial reports.

Carbon Plus Corporation will have an estimated project cost of Php 46,431481. It

will be financed by Php 20,000,000 bonds payable for 5 yrs with 10% interest, and

proceeds from stock issuance of 40,000,000 with P100 par ordinary shares out of

authorized capital stock of 500,000 shares.

The general assumptions were formulated for investment costs, income, expenses,

and other accounts in relation to the preparation of financial position of financial

statements for five (5) years of operation.

Financial analysis of the profitability of the company shows that at year 5, its

gross profit margin is 28.43%, its operating profit margin is 14.68%, its return on sales is

9.39%, its return on investment is 11.84%.

Financial Analysis of the liquidity of Carbon Plus Corporation. shows that at year

5, its total asset turnover is 122.79 times and its current ratio is 17.22 times.

The payback period of the project is 4.83 years.

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H. Socio Economic Impact

Carbon Plus Corporation will come into existence and will be established not only

for the purpose of generating huge amount of profits for the company itself but also

geared towards the improvement of the whole community.

Carbon Plus Corporation aims to rise and take the whole community as they soar

high starting with the company’s shareholders, to its customers, to the environment and

to the whole Philippine economy.

I. Legal Feasibility

Carbon Plus Corporation will abide to the legal requirements establish by the

government from the city requirements to the national requirements.