1 Zeolaub

3 Bamboo Leaf-derived Zeolite

6 A Business Plan

9 Presented to:

10 Ms. Rhea J. Subong

11

12

13

14 Proponents:

15 Aniversario, Franchezka

16 Cañedo, Phulagyn

17 Cubillan, Jeanette

18 Dasmariñas, Elden Jean

19 Gomez, Ma. Angeli

20 Quidato, Myra

21 Serafino, Gercel Therese

22 Sillo, Hanna Barabara

23

24

25

26 February 26, 2019

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27 I. The Company

28 A. Description

29 1. Background (Company and Management)

30 a. History of zeolite

31 The history of zeolites began in 1756 when the Swedish

32 mineralogist Axel Fredrik Cronstedt, commonly known as

33 Constredt, discovered the first zeolite mineral, stilbite which he

34 described as “boiling stones” (Flanigen, Broach, & Wilson,

35 2010). Constredt coined the term zeolite form the Greek words

36 zeo, which means ‘to boil’, and lithos, meaning ‘a stone’

37 (Zimmermann & Haranczyk, 2016).

38

39 Zeolites are nanoporous crystalline materials that have been

40 used for many decades in different applications (Zimmermann &

41 Haranczyk, 2016) Two types of Zeolite materials are currently

42 existing: the naturally occurring and the artificial synthetic

43 zeolites. Natural occurring zeolites usually come from volcanic

44 and sedimentary rocks while artificial zeolites are being

45 synthesized in different manners.

46

47 In the second half of 2018, Justin Ian Jequinto, Paul Arean

48 Sanapo, and Zygote He Sorupia, all taking up Bachelor of

49 Science in Chemical Engineering, under the supervision of Engr.

50 Dennis C. Ong from the School of Technology, started a

51 research study to find a new way to produce zeolite. According

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52 to Engr. Dennis C. Ong, “a zeolite is not a new technology since

53 a number of zeolite products are already in the market, either

54 natural or synthetic. Natural zeolites are those that are being

55 mined while synthetic zeolites are made from different raw

56 materials.” He also stated that “the application of zeolite is

57 already common, the only difference with our study is that we

58 are exploring new raw materials for the zeolite production, which

59 is the highlight of our study.” Engr. Ong also said that “our main

60 goal is for waste valorization, so we try to utilize waste materials

61 that are not being used, and in our case we used bamboo leaf

62 because of its high silica content which is essential in the

63 synthesis of zeolite.” The fact that bamboo leaf is not fully

64 utilized in the Philippines is what inspired the inventors to make

65 use of this raw material for zeolite production.

66

67 b. Origin of the company name

68 Zeolaub’s name, logo, and tagline represent the composition

69 and origin of the product offered by the company. They

70 emphasize the natural ingredients and procedures used to

71 achieve and produce such valuable substance.

72

73 The name “Zeolaub” was derived from two words “zeo”, which is

74 a Greek word that means to boil, and “laub”, which is a German

75 term that means “leaves, greenery, or foliage”. The suffix “-laub”

76 emphasizes the point of difference between the company’s

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77 bamboo leaf-derived zeolites and mined zeolites. Zeolite comes

78 from from the two Greek words “zeo”, which means “to boil”, and

79 “lithos”, which means “stone”. This describes the creation

80 process of natural zeolites, which are formed from the

81 interaction of volcanic ashes and salt water that will then deposit

82 themselves in rocks and ash beds, hence the name (Mervine,

83 2012). The usage of the term “zeolaub” also comes to define the

84 company’s synthetic process of zeolite creation, wherein the

85 leaves are exposed to a very high temperature and incinerated

86 until they turn into ash that are then processed into silicates.

87

88 Zeolaub’s logo uses the earth colors, black and green, to

89 highlight the natural composition of the product. Zeolaub’s

90 zeolite, as mentioned, is primarily comprised of boil bamboo

91 leaves, thus the sprout seen at the top of the supposed letter O.

92 Letter O’s illustration depicts zeolites’ molecular structure, which

93 generally assumes a beehive form. Finally, the term “laub” is

94 colored green to elucidate the literal English translation of the

95 German word.

96

97 Furthermore, Zeolaub’s tagline, “leaves no residues”, is a play of

98 words that connotes two meaning: first, it describes how the

99 synthetic zeolite was formed; second, it describes the capacity

100 of the company’s zeolites in adsorption. In the Philippines,

101 bamboo leaves are considered as a waste product since it

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102 virtually has no use. Disregarding any economic value from the

103 leaves, burning them to drive mosquitoes, bugs, and other

104 insects away is the common custom.

105

106 Using these leaves to produce synthetic zeolites therefore

107 furthers the company’s tagline message that bamboo leaves can

108 be converted from being mere residues of bamboo harvesting

109 into useful by-products. The secondary meaning of the double

110 entendre of the tagline refers to its application. As an adsorbent,

111 zeolites accumulate specified substances into its porous surface

112 by modification, separating two-substance mixtures which

113 leaves a desired filtered substance without the residues of the

114 undesired substance.

115

116

117 Figure 1. Zeolaub's logo and tagline

118

119 c. Type of Ownership of the Company

120 The company is be owned by under a partnership formed

121 between the creators of the business plan, the Red Ribbon

122 Committee; the inventors of the product, Justin Ian Jequinto,

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123 Paul Arean Sanapo, and Zygote He Sorupia, along with their

124 adviser, Engr. Dennis C. Ong.

125

126

127 2. Mission statement

128 A responsible provider of low-cost, organic, sustainable and

129 effective zeolite products with the best quality to our valued clients.

130

131 3. Vision statement

132 A leading organic zeolite producer in the Philippines in 2030.

133

134 4. Objectives:

135 This business plan aims to act as a channel in showcasing one

136 of the innovations made by the inventors from the University of the

137 Philippines Visayas through the creation of a zeolite product.

138 Zeolaub generally aims to provide bamboo leaf-derived zeolites

139 to help the bioethanol industry and other various industries in the final

140 stage in the purification of ethanol and water treatment.

141 Specifically, it aims to:

142 a. To offer consistent customer satisfaction by providing

143 low-cost zeolite products while upgrading technology to

144 respond to the customer’s unique needs and problems;

145 b. To come up with long-term sustainable environment-

146 friendly solutions;

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147 c. To create job opportunities to the local community by

148 expanding the business activities; and

149 d. To enhance individual employee skills that would

150 contribute to overall company success.

151

152 B. Product Description

153

154 Zeolaub’s zeolites are modified to fit different needs such as water

155 treatment, wastewater treatment, agriculture, and plant adsorbents, among

156 other uses. Zeolites are microporous silicate solids that functions as

157 adsorbent, separating a particular substance from a particular solution

158 (e.g. The adsorption of water from an ethanol and water solution in

159 bioethanol production). Zeolites come in natural and synthetic forms. The

160 naturally-occurring ones are mined from sedimentary and volcanic rocks

161 and the the artificial synthetic ones are produced in plants. Zeolaub’s

162 synthetic zeolites are derived from bamboo leaves, an otherwise

163 invaluable material, making use of its silica-rich biomass to produce

164 environmentally sound zeolites.

165

166 Zeolaub offers zeolites that are customizable for the need of the

167 industry. Zeolaub’s primary product is the zeolite designed for the

168 bioethanol production industry. The pores of zeolites are modified to be

169 smaller than the particles of water so that it functions as a microscopic sift

170 and adsorbs the water in the final stage of purification in the production of

171 bioethanol. Zeolaub produces zeolites in ash form but they can be easily

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172 modified into other shapes specified or needed by the industry and the

173 most common is the pellet form. Zeolaub also makes use of zeolite’s

174 selective property in wastewater treatment by removing ammonia and

175 other odoriferous substances. Additionally, the firm produces zeolites that

176 aid in water treatment by filtering water and removing heavy metals.

177

178 The Asian region is region, together with the Latin America, is one of

179 the biggest contributor in bamboo production, amounting to the worldwide

180 total of 190 kilotons of bamboo leaves waste annually. In the Philippines,

181 bamboo is estimated to be between 39, 200 to 52, 700 hectares, and from

182 this, 39.2 to 52.7 million poles are estimated to be harvested each year

183 (Roxas, 1997). In Zeolaub, the resulting bamboo leaves waste are not

184 merely burned as is customary after bamboo harvesting—Zeolaub burns

185 bamboo leaves and transforms them into zeolites. Zeolites are generally

186 reusable and bamboo leaf-derived zeolites deigned for the adsorption of

187 non-harmful substances can be used as fertilizers upon disposal since

188 they are less invasive, closing the environmental loop and reducing waste.

189

190 C. Internal Analysis

191 Zeolaub focuses on producing and selling cost-efficient bamboo leaf-

192 derived zeolites to various processing plants. The following are the

193 organization’s manageable internal strengths and internal weaknesses that

194 can be matched in order to position itself in the market.

195

196

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197

198

199 Strengths

200 ● Use of organic raw materials

201 Most of the zeolite sold in the market are made from the silica of minerals

202 extracted from mining. This, however, could alter the natural environment

203 and cause natural disasters like flood and landslide. Furthermore, minerals

204 are not easily replenished since it takes a long period of time to form

205 again.

206

207 Zeolaub, on the other hand, uses organic raw materials in producing

208 zeolite. Silica is extracted from bamboo leaves subjected to furnace and

209 turned into pure white ashes. Bamboos are found everywhere. Taking its

210 leaves will not cause harm to both the nature and the people. Moreover,

211 bamboo leaves are usually ignored and treated as trash since it does not

212 have any significant use. Using it as a raw material will also solve the

213 problem of bamboo leaf disposal. Due to these factors, using bamboo

214 leaves as raw materials is more cost efficient and safe compared to

215 minerals from mining. Bamboos are also readily available in Iloilo, thus the

216 collection of the leaves is not difficult.

217

218 ● Innovative process of producing zeolite

219 The production process of zeolite usually involves many stages. The

220 length of the process also depends on the type of raw material that is

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221 being used or the source where silica is being extracted.

222

223

224

225 ● Since Zeolaub extracts silica through only burning of the leaves of

226 bamboo, the production process of zeolite used is shorten, making the

227 Zeolaub’s production process the shortest among the other processes in

228 the market.

229

230 ● Product effectiveness

231 Based on the observation of the inventors and chemical engineers of

232 Zeolaub on production plants, the effectiveness of zeolites sold in the

233 market ranges from 3% to 6% in terms of absorption of water from ethanol.

234
235 The zeolite, however, produced Zeolaub from bamboo leaves reaches the

236 effectiveness of 11%. This shows that, though it is still subject for further

237 experimentation and testing, the zeolite produced by Zeolaub is far more

238 effective than that of what is present in the market.

239

240 Weaknesses

241  A new entrant to the market

242 Zeolaub is particularly new in the market. Being a new player in the

243 industry, it did not have an established connection to its target customers yet.

244 It still has to prove the competency of the product they are offering in

245 comparison to the existing zeolites in the market. Aside from its customers,

246 the relationship with the suppliers also needs a strong foundation since the

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247 suppliers would be one of the allies of the company for its survival in the long

248 run.

249

250

251

252 ● Lack of capital

253 The initial sample of Zeolaub’s zeolite was solely financed by the

254 three (3) student inventors, without the financial assistance of the

255 university or other institutions. As a startup enterprise, Zeolaub is in need

256 of capital in order to completely realize its stated goals and objectives. The

257 inventors with the eight (8) other co-partners still need additional capital to

258 fund the whole operations of the business. The capital would be used for

259 acquiring raw materials, hiring people to work in the company, investing in

260 marketing the product, and other operations.

261

262 ● Lack of existing facility and equipment for production

263 The facility and equipment used to produce the initial bamboo leaf-

264 derived zeolite were owned by the University of the Philippines Visayas.

265 However, this facility is solely used for academic purposes and is only

266 suitable for small scale production. Taking into account the new raw

267 materials and innovative procedure of production, thus, a new plant or an

268 existing plant that should be modified in order to produce the bamboo leaf-

269 derived zeolite on a large scale.

270

271 ● Invention is not yet patented

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272 An intellectual property right will give the product or idea of the

273 inventor the protection from anyone who tries to steal or copy it. The

274 inventors of the bamboo leaf-derived zeolite have not yet applied for their

275 intellectual property right for the product. This poses a weakness for the

276 company since the product can easily be copied by other parties who are

277 interested in producing or using the product without the consent of the

278 inventors.

279

280 ● Inexperience in managing a business

281 The people who made the initial manufacturing of the product are

282 Chemical Engineering students. They are mainly focused developing and

283 making sure of the effectivity of the product and they do not have any

284 managerial or entrepreneurial background. Although the other eight (8) co-

285 partners are fresh graduates from a business course, people who are

286 equipped with the knowledge in running a business is needed especially

287 that the company encompasses many areas such as accounting,

288 marketing, human resource, and operations.

289

290 D. External Analysis

291 Aside from internal analysis, another important aspect for a business’

292 success is the assessment of the external environment to which the company

293 operates. The opportunities and threats identified can serve as a framework

294 for strategy formulation of the company because it provides a basis as to the

295 areas where the company will be able to perform better and maintain its

296 competitive advantage, and also to other factors that can adversely affect

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297 their current performance or status. The following are the external factors

298 identified by Zeolaub:

299

300

301

302 Opportunities

303 ● Availability and sustainability of raw material (bamboo leaves)

304 Bamboo is the tallest perennial, woody-stemmed grass belonging from the

305 Graminae family. Due to the long cylindrical woody stem strength and ease of

306 workability, bamboo is a versatile material for a variety of uses: from

307 subsistence to commercial food (young shoots), to building and furniture

308 (Humanity Development Library). This plant is easily found anywhere and is

309 known for its rapid growth. A bamboo culm reaches its full height in about 60-

310 90 days; and in 3-5 years, reach its maturity and ready to be harvested,

311 depending on its intended uses. Bamboo is also a highly renewable material

312 because once the clump is already established, new shoots are produced on

313 an annual basis that develop into erect culms that can reach 30 m tall,

314 depending on the species (Bamboo Information Network of DOST –

315 PCAARRD).

316 Zeolaub’s primary material for its product is bamboo leaves, which are

317 generally considered as waste material since people makes use of bamboo

318 stem for their intended purpose. The use of bamboo leaves as raw material

319 offers sustainability since it does not endanger any bamboo species nor it

320 threatens the life of other living things.

321

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322 ● Few producers/competitors in the market

323 There are two main types of zeolites: the natural and the synthetic

324 zeolite. Natural zeolites are being “mined” because they are basically

325 contained in rocks, while synthetic zeolites are those produced in a laboratory.

326 Thus, Zeolaub’s product can be considered as a synthetic type of zeolite.

327 However, there are only few producers of zeolite present in the market, and

328 most of the industries that uses such product imports from outside-the-country

329 producers.

330

331 ● Emerging need for the product

332 Zeolite is known as microporous, aluminosilicate minerals which

333 commonly used as commercial adsorbent and catalysts. The need of zeolite

334 in different industries is widely increasing because of its functions. The

335 synthetic zeolites are widely used as catalysts in the petrochemical industry,

336 for instance in fluid catalytic cracking and hydrocracking. Also, it is used as an

337 additive in the production process of warm mix asphalt concrete. Furthermore,

338 zeolites can be used as solar termal collectors and for adsorption

339 refrigeration. Other Industries also used zeolite as water treatment, laundry

340 detergent, wastewater treatment, plant adsorbents, odor control, pet pitter and

341 etc. This emerging need for the product gives a wider scope of target market

342 for the Zeolaub.

343

344 ● Improved laws on intellectual property in the country

345 The main purpose of intellectual property law is to encourage the

346 creation of a variety of intellectual goods or ideas. In order to attain this, the

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347 law provides people and businesses a property right to the information and

348 intellectual goods or ideas they have created, however, this only limited for a

349 period of time. Philippines have its own IP law which is known as a Republic

350 Act No. 8293 or the Philippine Intellectual Property Code. This act outlines the

351 intellectual property rights of a Filipino citizen and the benefits to which he/she

352 is entitled. The law is divided into five parts: the intellectual property office, the

353 law on patents, the law on trademarks, service marks, and trade names, the

354 law on copyright, and other financial provisions (Carpolaw.com, n/a?).

355 The IP rights are important because they can set the business apart

356 from competitors and offer the customers something new and different. Thus,

357 this could a big help for Zeolaub in protecting their newly discovered raw

358 material for producing a zeolite, which is the bamboo leaf, and through this

359 law, the company can differentiate its product to other competitors.

360

361 Threats

362 ● Unfamiliarity of the market about the product

363 Businesses wishing to introduce and promote a new product are often

364 faced with a competitive marketplace. Zeolaub’s zeolite is new in the market

365 which makes customers wary of reliability and effectiveness of the product.

366 The fear factor that customer has made them choose those established

367 products over the new one despite having the same functionality and having

368 cheaper prices. Thus, the new product like Zeolaub’s zeolite must find ways to

369 build customer loyalty to attract more buyers and to gain more profit.

370

371 ● R&D support from the government

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372 Support coming from the government is crucial for the development

373 and success of the ideas and inventions made by the people. Strong support

374 in Research and Development (R&D) sector encourages aspiring scientists,

375 inventors and innovators to engage in their passion. However, recent data

376 gathered shows that Philippines has not scored well in the Global Innovation

377 Index (GII), with rank fifth among seven ASEAN countries and 73 rd among

378 127 countries. The Philippine Institute for Development Studies (PIDS)

379 pointed that this poor performance is a reflection of the “low amount of public

380 expenditures on R&D, inadequate number of research scientists and

381 engineers, inadequate infrastructure, restrictive regulations that hamper the

382 conduct of research, and the weak linkages of firms engaged in innovation

383 activities with the government and the academe”. Because of the lack of

384 government support especially in the financial aspect, further developments in

385 researches and inventions, like that of Zeolaub’s product, are either forgotten

386 and discontinued or sold to those with enough resources.

387

388

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391

392

393

394

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395

396

397 References

398 Flanigen, E. M., Broach, R. W., & Wilson, S. T. (2010). Zeolites in Industrial

399 Separation and Catalysis. 1-20.

400

401 Zimmermann, N. E., & Haranczyk, M. (2016, May 2). History and Utility of Zeolite

402 Framework-Type Discovery from a Data-Science Perspective. Crystal Growth and

403 Design, 3043-3048. doi:10.1021/acs.cgd.6b00272

404

405

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