FEASIBILITY STUDY on WATER REFILLING STATION

Nowadays. Proponent: CADP CONSUMERS COOPERATIVE Proposed Location: Brgy. as the demand for cleaner water becomes higher. and ozone generators. water softeners. carbon filters. In previous years. the current price per gallon of refilled purified water in Nasugbu ranges from P 20 to P 30 per 5-gallon container.INTRODUCTION The demand at the water refilling stations – water stores that sell purified water – is now increasing.000 to 12. Lumbangan. In Nasugbu. reverse osmosis membranes. Nasugbu. because of convenience on the part of the consumers. the price of household water purifiers and bottled water has become prohibitive.7 liters) containers is delivered by the station directly to the people’s home. most of the people were bringing a container to a water refilling station to buy purified water.000 liters of purified water per day. Water refilling stations managed by private entrepreneurs offer a cheaper and more convenient solution to the public’s drinking water needs than bottled water or the use of household filters. The “potable water” supplied by the providers is then further purified by utilizing a combination of water treatment equipment. The quality of purified water conforms to the national standards for drinking water and is even better than the quality of water produced by traditional water supply systems in terms of removed impurities. such as sediment filters. Batangas. For example. most of the water refilling stations is connected to the pipes of Nasugbu Water District for their source of raw water while in other areas they opt to use private deep wells. about 20 water refilling stations have proliferated in Nasugbu. purified water in 5gallon (22. Over the years. At present. Typical water refilling stations can produce 3. Batangas . They sell purified water of comparable quality with bottled water at a lower price. ultra-violet lamps.

Potable water will be more accessible as it will be located at the center of Barangay Lumbangan (besides the Consumer Store) where almost all of the employees pass by on their home. “Aqua Kabayan” as it would be named is going to provide additional services and benefits to the members as well as other residents in the community (Barangay Lumbangan). “Aqua Kabayan” will also offer additional services like free delivery and the product can also be availed on credit (for members only). Its purpose. B. (CADPI). just like any other cooperative is to serve the members and provide them their immediate needs and help the members attain economic stability. The water refilling station. Thus. .Objectives: A. Nature of the Business CADP Consumer Cooperative is an organization established by the employees of Central Azucarera Don Pedro. Provide a potable drinking water for the community. Inc. the cooperative operates a consumer store to provide the members their basic needs at affordable prices. Increase the income of the cooperative as it helps the community.

380 Members of the cooperative Local Residents Target Market Population Cooperative members Local Residents TOTAL Demand in Gallons Table 1 Demand Chart 523 100 623 Market Share It is assumed that since the targeted market is members of the organization. Using this data the projected demand for water refilling station in the specified area is: Estimated Weekly Consumption (in 5 gallon containers) 1.MARKETING ASPECT Target Market • • Demand The CADP Consumer Cooperative has a total membership of 523. a family of four members consumes three 5-gallon purified water every week or 12 containers a month. . 80% of the local residents are also going to consider getting their purified water supply from the store.869 9. On the average.476 37.569 300 1.276 1.345 Estimated Monthly Consumption (in 5 gallon containers) 6. While considering the accessibility factor. working on three shifts a day and there are an estimated 100 families residing nearby the store who are neither members nor employee of CADPI. 80% of the member will opt to buy from “Aqua Kabayan” (members buying in the cooperative earns dividends and refunds at the end of the year).200 7.

495 7. Customers can order thru phone call or text and 20 minutes waiting time will be observed.475 5.276 1.476 37.200 7.794.0 2. Members will be informed of the benefits and importance of drinking clean water and the added benefits of buying it from the cooperative Pricing Strategy – Being a new entrant.82 0 25 25 25 1. “Aqua Kabayan” will offer an affordable price of 25.0 1.900 Proposed Marketing Strategy Product Strategy – Refilling Station will be constructed with transparent glass and according to prescribed standards so that the customers will be able to see how carefully and cleanly the products are being processed.569 300 1.869 9.000.400.725. Distribution Strategy – A delivery vehicle will be purchased to shorten waiting time of customers.380 Market Share Cooperative members Local Residents TOTAL in Gallons Table 2 Market Share 1. SALES PROJECTIONS YEAR 1 YEAR 2 YEAR 3 71.170.93 6 9 86. Promotion Strategy – Information dissemination will be done so that target market will be aware of the existence of the water refilling station.Target Market Estimated Weekly Consumption (in 5 gallon containers) 1. It will also be assured that products will be handled properly and will maintain its quality during delivery.76 in units of 5 gal containers Selling Price Total Sales Table 3 Three Year Sales Projection 78.00 per container.973.255 240 1. Excellent quality will be maintained by giving the workers training and guidance on good manufacturing practices.020 960 5.980 29.0 0 0 0 .345 Market Share Estimated Monthly Consumption (in 5 gallon containers) 6.

000. Empty containers will be refilled and delivered to other customers so that consumers will only have to pay for the contents and not the containers.000. Fifteen thousand pieces of labels and seals will be printed on a quarterly basis. They are going to receive salaries of Php 4. Cost of these materials is estimated at Php 10. .500 a month or Php 150. Since most of the consumers already have containers. Manpower There will be 2 persons handling the delivery.00 per day.00. Estimated cost of a delivery vehicle is at Php 75. bearing the name of Aqua Kabayan and all containers should all be sealed to ensure that the product reaches the end consumer with utmost quality. Information Dissemination The awareness campaign will entail costs of printing flyers (for distribution) and tarpaulins (to be placed at strategic locations). Estimated Useful Life is five (5) years.00 per container. All containers should have labels.MARKETING BUDGET Delivery Vehicle There is a need to purchase a delivery vehicle to ensure the fast and timely delivery of products. Water is a basic need and there should be no delays in the delivery. Fuel Consumption in the delivery of goods is estimated at 500. Consumers prefer to buy products that are readily available and with minimal waiting time. Estimated cost is Php 3.00. both of which should know how to drive the delivery vehicle so that they can work alternately on the tasks to be assigned to them. 100 units of containers (5 gal) will be purchased. the said containers will be replaced every delivery. Packaging and Labeling Initially.00 daily.

000.0 217.0 0 180.0 0 118.0 0 5.00 MARKETING EXPENSES Account Title Delivery Vehicle Depreciation) Fuel & Lubricants Promotions Packaging (containers) Materials and Supplies (stickers) and seals (quarterly) Salaries and Wages TOTAL Table 5 Marketing Expenses (three years) YEAR 1 15.000.000.00 15.000.000.00 9.280.0 0 10.000.000.000.00 10.0 0 198.0 0 0 0 0 0 0 0 0 YEAR 2 15.00 15.680.000.00 45.0 0 180.0 0 5.0 0 108.00 169.800.0 .0 10.000.000.0 0 YEAR 3 15.000.000.000.0 ( Amount of 217.0 5.0 130.0 0 498.000.0 0 544.0 0 198.0 596.000.Account Title Delivery Vehicle Fuel and Lubricants Promotions Packaging (containers) Materials and Supplies (stickers) and seals (quarterly) Salaries and Wages TOTAL Table 4 Marketing Budget Amount in Pesos 75.000.800.0 0 10.000.800.000.000.000.000.800.

PRODUCTION ASPECT Production Process (water filtration & purification system) 1st unit Stage 1 Stage 2 Stage 3 Stage 4 2nd unit Stage 5 Stage 6 Stage 7 3rd unit Stage 8 Stage 9 Stage 10 Multimedia sediment process The water first passes through the 1st stage which makes up of a course gravel that traps solid particles of about 100 micron Consists of sand filters that removes sediment of 50 micron ratings Consists of fine sand that eliminates solid particles of 25 micron Consists of fine clear slit that eliminates solid particles down to 5 micron Multi media carbon process Makes use of a lignite carbon that removes foul taste and odor Makes use of bituminous carbon that eliminates yellowish and brownish discoloration brought by inorganic contaminants Makes use of granular activated carbon (GAC) as the last multi media carbon stage. This stage is where the water undergoes longer contact time with the carbon to eliminate other contaminants that might cause foul smell or taste Water conditioning and softening process Makes use of resin beads that attract mineral contents that convert hard water to soft water Makes use of ion exchange beads to condition water by extracting the organic and inorganic chemicals present in the water Makes use of another carbon that eliminates any ferrous iron (dissolved iron) in water .

Table 6 Schedule of fixed Assets Required FACTORY LOCATION AND LAY OUT .000. Cyst causes diarrhea and gastro enteritis.00 27.00 15 20 20. Polishing process Includes one (1) big blue housing that consists of a carbon cartridge that serves as a polishing stage to make the water crystal clear and shiny Anti-microbial process This stage eliminates cyst micro organism that has a micron rating of 1 and has a very thick cell wall where UV light sometimes cannot penetrate.00 150.000. Table 5 Production Process Fixed Assets Required: Item Land Machineries & Equipment Building (25 sq meters) TOTAL Amount 50. This makes use of reverse osmosis equipment which has semi-permeable membrane that only allows pure water to pass through and pushes the unpure water out of the system to the reverse side or the reject drain line.Stage 11 4th unit Stage 12 5th unit Stage 13 6th unit Stage 14 7th unit Stage 15 8th unit Stage 16 Makes use of fine gravel that serves as a sieve which eliminates any residue that might come out during regeneration time.5 will eliminate such kind of micro organisms.00 300. This is a cleansing agent.00 500. thereby assuring safe and pure water. This stage stands as a protection for the membrane against premature clogging Reverse osmosis It is the most important system in any water filtration and purification process. however a micron rating of 0.000.000. Water sterilization process This last and final stage is the second most important system in a water filtration and purification system.000.00 7. This is the stage that kills all microorganisms and other diseases causing bacteria from infiltrating into the product water. Ultra micron process Consists of a one (1) big blue housing that includes 1 micron cartridge that eliminates any microscopic residue that might go to the reverse osmosis membrane.500.00 per month.500.00 Useful Life in Years Annual Depreciation ***Repairs and maintenance of equipment is assumed at 2.

FACTORY OVERHEAD Overhead expenses are composed of Utilities. The cooperative manager will be the one to oversee the production and help in the operation whenever it is needed.00 monthly (water is the major raw materials needed).COST OF LABOR There will be 2 workers tasked in refilling and cleaning of containers. Please refer to Depreciation table for depreciation expenses.000.500 a month.00 per month. The two workers will be receiving Php 4. MATERIALS AND SUPPLIES Materials and Supplies are estimated at Php 6.000. Electric consumption is assumed at Php 7. PRODUCTION COST . Telephone Bills and Depreciation.500.00 monthly and telephone bills are at Php 1.

000.0 PRODUCTION COST PER UNIT YEAR 1 309.500.680.0 87.0 0 337.0 0 20.000.0 20.76 0 11.0 0 112.000.280.93 6 9 11.420.0 0 79.500.120.000.0 7.82 11.0 0 71.0 0 102.720.0 86.0 0 20.000.0 596.000.700.0 0 0 0 0 0 0 0 YEAR 2 118.200.0 0 7.500.0 0 YEAR 3 130.0 368.0 TOTAL PRODUCTION COST MARKETING EXPENSES Units Produced PC PER UNIT Table 8 Production Cost per unit (three years) YEAR 2 337.500.0 0 72.2 5 ORGANIZATION AND MANAGEMENT ASPECT .500.000.0 0 0 544.0 123.1 8 1 YEAR 3 368.0 0 7.700.0 0 309.720.1 0 498.0 0 0 78.Account Title Direct Labor Materials & Supplies Depreciation (Building) Depreciation (Machineries & Equipment Utilities TOTAL Table 7 Production Cost (three years) YEAR 1 108.800.800.200.

Manager Worker 1 Worker 2 Worker 3 Worker 4 4. Acts as the marketing officer and represents the business in all external concerns. Key Personnel and Responsibilities Cooperative Manager – In charge of the overall operation of the business. Business name CADP Multi-Purpose Cooperative under the brand name: “Aqua Kabayan” 3. Organizational Chart Board of Directors Coop. The manager will oversee the entire operation of the business and collects cash sales for remittance to the cooperative treasurer.1. They will be in charge of cleaning and refilling containers. Form of Business Multi-Purpose Cooperative 2. They will also handle collection of payments and issuance of receipts during delivery. They will ensure that all deliveries are done at the shortest possible time. Worker 3 and Worker 4 – will be tasked in the delivery and distribution of the products. Worker 1 & Worker 2 – will handle the plant operation. FINANCIAL ASPECT . They will also observe proper sanitation of the plant and maintain excellent quality of the product.

00 15.00 575.0 Sales 0 0 Year 2 1.794.000.00 75.500.00 45.00 10.00 212.00 18.00 150.400.00 787.000.500.00 INCOME STATEMENT Year 1 1.000.00 25. Gas & Lubricants Promotions Raw Material Supply (Water) Utilities Total Working Capital (first 3 months of operation) TOTAL CAPITAL REQUIREMENTS Table 9 Total Capital Requirements Amount 50.0 .00 300.000.170.500.000.00 54.000.725.0 0 Year 3 2.000.TOTAL CAPITAL REQUIREMENTS Account Title Fixed Assets: Land Machineries & Equipment Building (25 sq meters) Delivery Vehicle Total Fixed Assets Required Workling Capital: Salaries & Wages Returnable Containers Materials & Supplies Fuel.00 45.000.000.000.973.000.000.

00 00 337.005. 217. 00 00 20.000. 00 198. 00 5.500.000.500.000. 368. 00 20.000. 00 108. 15. 20.000.000.120.000.500. 130.500.200.000. 00 00 1.000. 00 00 139.0 0 Year 2 Year 3 . Direct Labor Materials & Supplies Factory Overhead Expenses Depreciation Expense (Building) Depreciation Expense (M & E) Utilities Total FOE Cost of Goods Available for Sale Gross Profit on Sales Less: Operating Expenses Marketing Expenses 180.500.635. 00 1.920.725.000. 123.800.200. 00 00 544.800. 150. 10. 00 118. 00 5.484.000.800. 00 7. 5.500.0 198.000. 00 00 112.700. 00 309.680. 1.0 0 7. 00 180. 00 CASH FLOW STATEMENT Cash Inflows Initial Capital Year 1 787.000.802. Gas & Lubricants Promotions Packaging (containers) Materials & supplies 00 10.800. 00 10. 00 72. 00 00 15. 00 129.720.000.700. 00 00 79.205. 00 102. 00 986. Salaries & Wages 00 Depreciation Expense Delivery Vehicle 00 Total Marketing Expenses Net Operating Profit Table 10 Income Statement 118.000.000.000.090.Less: Cost of Sales 108.0 0 0 00 00 00 00 217.280.0 15. 00 00 1. 596. 87. 498. 00 00 7.900.500.000. 1.000.0 0 0 130.000.000.420.800.500. Fuel.680.700.

0 0 198.000.0 0 1.0 0 150.725.0 0 2.000.120.0 0 2.0 0 216.973.0 0 10.623.0 0 917.0 0 1. Gas & Lubricants Payment of Salaries & Wages Promotions Expense Payment of Raw Material Supply Payment of Utilities Total Cash Outflows Net Cash Inflows Add: Cash Balance Beg.000.000.125.0 0 102.000.0 0 2.231.500.0 0 10.000.0 0 123.400.900.138.200.0 0 1.000.000.0 0 15.0 0 261.200.500.0 0 217. end Table 11 Cash Flow Statement 1.0 0 72.0 0 1.225.Sales Total Cash Inflows Cash Outflows Purchase Land Purchase & Installation of Machineries & Equipment Construction of Building Purchase of Delivery Vehicle Purchase Returnable Containers Purchase of Labels & Stickers Fuel.000.000.0 0 75.0 0 BALANCE SHEET Year 1 Assets Year 2 Year 3 .0 0 2.000.000.800.0 0 50.0 0 10.900.231.0 0 1.400.0 0 112.0 0 87.500.369.170.0 0 180.0 0 1.253.000.000.600.231.0 0 2.794.0 0 79.0 0 1.973.000.0 0 180.0 0 835.500. Cash Balance.400.420.369.000.170.000.360.725.0 0 217.581.0 0 237.500.0 0 198.000.0 0 300.0 0 3.0 0 1.800.350.

000.00 50.00 45.000.774.625.864.864.00 2.00 787.500.00 1.000.205.000.900.500.000.00 30.00 1.725.00 1.Cash Land Building Machineries & Equipment Delivery Vehicle Returnable Containers Total Assets Liabilities & Capital Coop Investments Add: Net Income from Operation Total Liabilities & Capital Table 12 Balance Sheet 1.000.000.000.900.070.125.774.900.00 1.00 260.500.00 2.000.00 3.00 FINANCIAL RATIO NALYSIS PROFITABILITY RATIOS .500.00 2.000.00 127.00 280.774.00 50.00 50.00 135.00 986.900.00 1.000.00 60.00 240.900.00 5.00 142.000.000.623.00 10.000.00 4.00 4.500.000.090.00 2.864.070.625.369.231.

774.5 6 2) = 0.0 0 1.0 0 1.500.5 5 Table 13 Financial Ratio Analysis .0 0 = 0.500.794.774.0 0 986.0 0 986.000.1) Return on Assets (ROA) Net Income Total Assets Return on Equity (ROE) Net Income Owner's Equity Net Profit Margin Net Income Sales = = = 986.5 6 3) = 0.500.0 0 1.000.000.

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