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    PIS - Coco Charcoal Briquette - 1 Page Presentation

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    Niemar Abalo
    This document provides details on establishing a coconut charcoal briquette production business, including an overview of the product, demand potential, required equipment and their costs, materials and labor needs, and projected financials. Setting up the business would require an initial investment of $994,235, with 78% financed through loans. The analysis estimates a payback period of 2 years 6 months, average annual net profit margin of 17.6%, and internal rate of return of 26.68%. The business could generate local jobs and income while utilizing available government support programs.

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    PIS - Coco Charcoal Briquette - 1 Page Presentation

    Uploaded by

    Niemar Abalo
    38 views1 page
    This document provides details on establishing a coconut charcoal briquette production business, including an overview of the product, demand potential, required equipment and their costs, materials and labor needs, and projected financials. Setting up the business would require an initial investment of $994,235, with 78% financed through loans. The analysis estimates a payback period of 2 years 6 months, average annual net profit margin of 17.6%, and internal rate of return of 26.68%. The business could generate local jobs and income while utilizing available government support programs.

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    PIS_Coco Charcoal Briquette_1 Page Presentation

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    This document provides details on establishing a coconut charcoal briquette production business, including an overview of the product, demand potential, required equipment and their costs, materials and labor needs, and projected financials. Setting up the business would require an initial investment of $994,235, with 78% financed through loans. The analysis estimates a payback period of 2 years 6 months, average annual net profit margin of 17.6%, and internal rate of return of 26.68%. The business could generate local jobs and income while utilizing available government support programs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    38 views1 page

    PIS - Coco Charcoal Briquette - 1 Page Presentation

    Uploaded by

    Niemar Abalo
    This document provides details on establishing a coconut charcoal briquette production business, including an overview of the product, demand potential, required equipment and their costs, materials and labor needs, and projected financials. Setting up the business would require an initial investment of $994,235, with 78% financed through loans. The analysis estimates a payback period of 2 years 6 months, average annual net profit margin of 17.6%, and internal rate of return of 26.68%. The business could generate local jobs and income while utilizing available government support programs.

    Copyright:

    © All Rights Reserved
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    of 1

    Coconut Charcoal Briquette Production: A Pre-Investment Study

    Indirect costs needed: (1 month operation)


    All about the Product Particular Unit Cost Quantity Total
    Coconut charcoal briquette is a compressed charcoal power mixed with Production Manager 15,000.00 1 month 15,000.00
    cassava starch using technologies developed by National Coconut Center
    Driver 8,000.00 1 month 8,000.00
    (VSU) and Philippine Coconut Authority – Zamboanga Research Center.
    Uses of charcoal briquette are: fuel, activated carbon for cosmetics & Fuel & Oil 3,500.00 4 weeks 14,000.00
    health products, and detoxification & cleansing agent
    Water 300.00 1 month 300.00
    Demand of the product Electricity 10,000.00 1 month 10,000.00
    Maintenance 1,375.50 1 month 1,375.50
    Andok’s food chain stores needs 10,000 kilos of coconut charcoal
    briquette per day for their almost 200 stores operating nationwide. Depreciation 4,958.32 1 month 4,958.32
    Total 53,633.32
    List of needed equipment/machines/facilities:
    Monthly
    Particular Unit Cost Quantity Total Maintenance Total Project Cost
    Depreciation

    Land 500.00 100 m3 50,000.00 Sources


    Particular Total
    Building 200,000.00 1 unit 200,000.00 625.22 83.33 Loan Equity

    Mini-truck Fixed Assets (3.1)


    (cap: 4 tons, 200,000.00 1 unit 200,000.00 1,666.66 833.33
    870,000.00 670,000.00 200,000.00
    2nd hand) Pre-operating Expenses 17,300.00 17,300.00
    Charcoaling Working Capital
    15,000.00 1 unit 15,000.00 125.00 83.33
    Pit 106,935.32 106,935.32

    Total Project Cost


    Charcoal
    150,000.00 1 unit 150,000.00 833.33 125.00 994,235.32 776,935.32 217,300.00
    Grinder
    Cost Sharing
    100.00% 78.14% 21.86%
    Charcoal Percentage
    150,000.00 1 unit 150,000.00 833.33 125.00
    Mixer

    Briquetting
    150,000.00 1 unit 150,000.00 833.33 125.00
    Machine
    Investment analysis
    Weighing
    5,000.00 1 unit 5,000.00 41.67
    Scale
    Payback Period- 2 years, 6 months & 18 days of full operations
    TOTAL 870,000.00 4,958.32 1,375.00 Average Annual Net Profit Margin (ANPM) 17.60%
    Internal Rate of Return (IRR) 26.68%
    Simple Return on Investment (ROI) 33.21%
    List of needed materials: (1 month ope. @ 15 production runs)
    Unit
    Particular
    Cost
    Quantity Total Sources Social and economic benefits
     Generate an average annual labor income of Php 679,999.60
    Local coco
    Coconut shell 2.00 5,556 kls 11,112.00
    farmers to 10 project workers – 8 direct and 2 indirect .
     An additional annual income of its members of P133,344.00
    Cassava starch 50.00 167 kilos 8,350.00 Local traders derived from selling coconut shell to the project
     Provide opportunities to other value chain actors including
    84 sacks @ logistics, other raw material suppliers, consolidators will also
    Empty sacks 10.00 840.00 Local traders
    20 kls cap. benefit from this investment.

    TOTAL 20,302.00
    Government Support Programs

    Name of Program Agency Address


    Direct labor needed: (labor rate/production run @ 15 production runs)
    Rural Agro-Enterprise Department of Trade Pawing, Palo, Leyte
    Particular Rate Quantity Total Remarks
    Partnership for Inclusive & Industry (DTI –
    Development (RAPID) RO8)
    Carbonizing 300 2 persons 9,000.00 Members and Growth Project
    Coconut Farmers and DTI RO8 & Pawing, Palo, Leyte
    Crushing 300 2 persons 9,000.00
    Crushing & mixing are Industry Development Philippine Coconut
    performed by the persons Plan (CFIDP) Authority RO8
    Mixing
    Financing Programs SB, LBP, DBP & Tacloban City,
    Briquetting 300 2 persons 9,000.00 Members
    other MFIs Ormoc City &
    Baybay City
    Drying 200 2 persons 6,000.00
    Local
    Weighing &
    Packing

    TOTAL 33,000.00

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