College of Business and Accountancy | Our Lady of Fatima University

Name of the business: Fabricultured

Reason for choice of name: The name of the business is “Fabricultured”. This is a combination
of the words “fabric” and “agriculture”. This is because in making the fabric, the main material is
an agricultural product which is corn. Corn can be grown from every part of the world. It is one
of the most abundant grain that the world sought after. Just as we thought about its use, we end up
only with the answer: “food”. But it is not just for food. What do we do with the stalk, the leaves
and the husks? Farmers would leave them in the farm to serve as fertilizer for the next harvest.
The leaves, stalk, and husks of the corn contains cellulose which cotton is almost pure of. The
cellulose that the corn husks are what to be use for creating of fabrics. These cellulose found in
the husks of corns are better stretch ability that any fibrous plant. Another word that can be found
in the name of the business is “cultured”.

Tag Line of the Business: “Sustaining the future’s fabricated needs.”

Logo of the business:

Fabricultured’s logo shows the name of the business written in a circular way. This indicates the
continuous process in research and development of the product. In a way, the circular path of the
name connotes sustainability. In the center stands an image of corn which is the main raw
material for the fabrics. The arrows on the end of the letters “R”, “L”, and “R” speaks for
“Recycle”, “L” and “Reinvent”. In the first process, the corn husks which are considered as waste
are recycled to be used again as fabrics. With these fabrics, another product is made. Reinventing

Name of Owner(s):

Mesina, Jemaima Erika Bulanadi, Princess Aliesa Dela Cruz, Junina

Lasin, Merrybhy Pangilinan, James Ferdinand Pareja, John Paul

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Santos, Nicole Sotto, Crisanta

Strengths and weaknesses of proposed project:

Strengths Weakness

Comparatively Cheap Price Lack of Marketing

New Components of the Product Technology
Product Features Lack of Working Capital
Availability of Raw Materials Lack of Management skills

Strengths

 Comparatively Cheap Price

Since the raw materials for the fabric are mainly corn husks which if not to be given
freely by the farmers or taken legally by the workers, it could be bought from the farms at
the lowest price than any raw materials. Chemicals used in the process are also the
common kind which can be found merely in households. There is no much expenditures
in the raw materials but rather on the production process since it requires time. But due to
the low labor cost, it is not much to consider in increasing the price of the fabric.

 New components of product

In today’s generation, mostly of the fabrics use for clothing and other garments are made
from oil based synthetics or cotton. For a change, Fabricultured uses corn husks to make
these fabrics. It can offer a near or same satisfaction that the cotton can offer. It’s tricky
and risky but is sustainable. Since it can offer food and fabric at the same harvest time.

 Product Features
Fabricultured produces fabrics which are made from corn husks. The stalks and leaves of
corn contains too coarse fibers which can be hardly use for fabrics but the corn husks
contains finer fibers to protect the kernels throughout the growing season. These finer

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strands of fibers makes stretchable fabrics that makes the cloth more comfortable to those
who wear it.

 Availability of raw materials

Since the main material for the product are corn husks and Central Luzon is mostly
farmland, raw materials can easily be found. Corn are grown yearly, if it is not rice, for
food of both people and animals. It is not just the Central Luzon which can supply corn
husks. There are a lot of farms in the Northern part of the country Nueva Vizcaya and
Cagayan Region. A lot of farms are distributed too on the Southern part of the country
which can be a great source of raw materials.

Weaknesses

 Lack of Marketing
Since the business is manufacturing, there are limited ways to market the product.
Building up marketing strategies to reach customers is hard since they barely think
through it.

 Technology
Since corn husks fabric is not yet widely known, there is not yet any technology that will
greatly help in creating the fabric easier and faster. Although there are some that can be
used as alternative, great effort are still put on the hands of the man power.

 Lack of Working Capital

Although there is no need for such big amount of capital since the raw materials needed
are cheap, the capital will be used to fund for the man power in the production process.
The process contains a lot of time and effort and patience. And properly paid workers do
the best work they can.

 Lack of Management skills

Even though the owners of the business hold a degree in Business Administration, still it
is not yet enough to run a business. Without the proper skills and knowledge, the business
may not succeed or even if it succeed it will run out for a while and back down in a few
months.

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Product/Product’s name

Product Description

The Fabricultured produces corn husk textile fabric which is a type of fabric that is made from
dried corn husks that undergone from various production processes. Most manufacturers now
rethink about the future of raw materials in making fabric. Since fabric is use for garments and
clothing in which demand goes high every time the population hits up, the raw materials are
limited as it may seem. Another source of fiber is needed. A researcher found the solution in corn
husks. He said that the corn husks’ fibers nearly has the same softness as the cotton, depending on
the process. It is also as comfortable as the cotton. Today, the world look for environmental
sustainability not only for the future generation but also because the planet is slowly dying. The
faster the innovations came, the faster the industry grows and the spaces for industrial
infrastructures compete with the spaces needed for food. Corn offers both sustainability for food
and business.

Location of business office and factory: Gatiawin, Arayat, Pampanga

Approximate space requirements: 500 sq. meters

The approximate space requirement may seem big. It will include the factory, offices, storage of
finish products, parking for the vehicles used for the delivery. The factory also needs space far
from houses so that the waste won’t affect the residents near. The operation should not also be
interrupted by any party outside the factory.

Plant size: 400 sq. meters

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The plant size includes the offices, the machineries to be used in the process so the plant need to
be spacious. For the proper and smooth operation, a wide space is needed so the workers can
move easily.

Reason for choice

Since corn husk can be found in farm which grows corn, the idea is for the plant will be built in a
place where the main raw material is abundant. Arayat is an ideal place because primarily, farms
are the main source of income of the residents. Corn are grown most on the months of January.
Also, Candaba, Nueva Ecija and Tarlac which also offers a vast amount of corn for their food,
can also be a source of corn husks. The Northern part of country also offers enormous amount of
corn husk in the fields during summer time.

Another reason is that, since it is a factory and it manufactures fabric, an extensive land is
needed. And Arayat is mostly vacant land, so it is easy to negotiate for a place for a plant. The
price for the place is considerably low compared that of on the cities because mostly, lands on far
places are used for gardens and extensions of houses.

Lastly, considering it is a manufacturing plant, the distribution to the clients can be delivered on
time. Although the place is far from the cities, the roads are well developed already. There are
also shortcuts from different places to take so if ever the clients are worried about the traffic, the
routes are to be considered.

Technical Aspects

Type Cost Output Power Needed Supply Situation

For mixing the corn

husks, hot water,

Stainless steel acetic acid, sodium

220 volts Available locally
tumbling reactor P 10,000 chloride, sodium
hydroxide, surfactant
and softener.
Hot Water Free Mixed with other 110 volts Available locally

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chemicals, makes the

corn husks loose.
Turns into loose
Corn Husks Free Not Needed Available locally
strands of fibers.
Turns corn husks into
loose and smooth Not Needed Available locally
Acetic Acid P 10.00
fibers.
Turns corn husks into
Sodium Chloride loose and smooth Not Needed Available locally
P 10.00
fibers.
Turns corn husks into
Sodium
loose and smooth Not Needed Available locally
Hydroxide P 10.00
fibers.
Turns corn husks into
loose and smooth Not Needed Available locally
Surfactants P 25.00
fibers.
Turns corn husks into
loose and smooth Not Needed Available locally
Softener P 40.00
fibers.
For delivery of Diesel, 3.3L
L300 P 150,000 Available locally
fabrics to clients Engine

Production process

1. On the steel tumbling reactor put one bin of corn husks with hot water.
2. Add the solution of chemicals such as acetic acid, sodium chloride, sodium hydroxide,
surfactant and softener.
3. Continuously rotate for half an hour.
4. After sometimes, the solution breaks down the rigid husk material where in the clumps of
coarse fibers are left.
5. Wash the fibers then with water.
6. Put outside to be dried out.
7. Another process of biochemical treatment reduces the diameter of the coarse fibers to
make finer strands.
8. Fine fibers then are bleached.
9. Span to yarn and colored with common cotton dyes.

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Demand and Supply situation:

Since clothes and garments are basic needs of humans. The demand for fabrics from every
corners of the world never dies. While most of fabrics today are made from cotton, the
manufacturers because of the growing of population which causes to the large demand of every
year. Over 15 years, the worldwide consumption for textile fibers has doubled. And since then,
the use of oil-based synthetics dominated the market. But now that there is shortage in the oil
which causes petroleum prices to rise, increasing the cost of synthetics.

The world felt the need to develop new ways to sustain for the future, a researcher found a
solution but not yet recognized in most countries. This is making fabrics using the cornhusk.
Farmers may consider them waste but fibers from cornhusk have far better stretch ability
compared to any other natural cellulose fibers according to researchers.

Another reason which is in every way valid is that grooving corn for food and getting the
cornhusk for fabric is like hitting two birds with one stone. Cornhusk being the major material
came from corn peanuts which can be found mostly in farmlands of central Luzon. Aurora and
near provinces in Pampanga so the supply needed for the demand can be sustain through
sufficient supply of raw materials and if

Competitors Marketing Strategies (Pine Clothing)

a. Product
The

Competitor Fabricultured

product made from fabric pineapple is light and airy. It is similar to linen of hemp in that
it is cooling and slightly stiff, although it is a bit softer. It is also has a natural gloss
similar to silk. The weaving of pine is intensive because it is done mostly by hand.
b. Price

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Competitor Fabricultured

Since the pineapple clothing are hand-made and are weaved, then the price are
higher than expected and mostly, rich people choses to use and afford the clothing.
c. Promotion

Competitor Fabricultured

These clothing are seen on fashion shows, bridal shows, runways and weddings
of popular people, formal events which are considered as their promotion since there are
really not promotion use except that on the advertisements once on a while.
d. Place

Competitor Fabricultured
The
pine clothes
are widely
distributed
to well-known people and celebrities from local and international market place.

Cornhusk Clothing

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 Product

Cornhusk is much more comfortable that synthetics such as polyesters. It is a major product
of the farmland, so the raw materials are very cheap.

 Promotion

Since the world is looking for new sustainable and cost effective fibers, the discovery of corn
husk has gone viral in the news.

 Price

The price in incredibly lower that any of that fibers used in making fabrics. This
is because the raw materials used are locally available in any time of the day. This can be
an advantage because most manufacturers want cost-effective raw materials.

 Promotion

There is not yet promotion known to use but the news spreading across the world
about the cost-effectivity and environmentally friendly of raw materials serves as the
promotion for a while.

 Place (Distribution)

Most of the fabric textiles can cater local demand as well as international market
place because it also can match the satisfaction the cotton can give.

Opportunities and Threats

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Opportunities Threats

Similar Product making profit Natural disasters

Access to cheap raw materials Too much competitors
No such product in the market
Favorable government policy
Favorable government programs

Opportunities

 Similar product making profit

For example in pineapple clothing production, high in demand, but low in supply.
Similarities of it was that the cornhusk fabrication is financially feasible leading to
making profit. It can be a substitute for the oil-based synthetics, cotton and pineapple
clothing since they cater the same needs in the market.

 Access to cheap raw materials

The accessibility to cheap raw materials is easy because the main raw materials is
recyclable and corn husk is from the waste turned into a profitable raw material. Farms in
the country grows either corn or rice all throughout the year so the corn husks are easily
available. Also, the raw materials can be given by farmers for free or if not for free, in an
amount that is lower than any raw materials used for fabrics.

 No such product in the market

Corn husk fabrics are new to the market. It is not yet known to the manufacturers and
makers of garments in the country. No one tries to do it first. Though it is new, it is
financially feasible due to the quality of product and the demand of fabrics.

 Favorable government policy

Favourable with city ordinance No. 2008 enacting the Environmental code. Another is
that since the corn husks fabrics are made from natural fibers instead of synthetics and

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that there are few government rules and regulations to take in considerations. It also
involves environmental sustainability which makes it favourable to the government.

 Favorable government programs

Introducing livelihood programs for farmers and employees to have job for the corn husk
production and for the starting process, Agri fabrics will provide jobs for the
unemployed. It also has to do to the help that the government gives to the farmers and
that the waste are reduced for their benefits.

Threats

 Natural Disasters
Natural disasters are fortuitous events that can’t be controlled. These are threats for the
production of corn husk. Especially, it is the main product or the main raw material
needed for the manufacturing process of corn husk fabrics. Because the corn are grown
when the weather is not too high and not too low, the threat of drought and too much rain
should be considered.

 Too much competitors

Many competitors are aligned in fabrics business, mainly the pineapple clothing. Since
pineapple have been proven through the years in the quality of clothes it produce, like the
corn, it can also provide for food for people.

Major consumers of the product (target group)

a) Geographic Segmentation
Almost businesses are around the world are considering getting involve in environmental
sustainability. And production of fiber is not excuse. Even the manufacturers of fabrics
are aggressively attempting to address issues of environmental compliance. Since the
main issues that manufacturers are starting to address to achieve resource efficiently
include looking at waste, water, energy and also reducing toxic chemicals, the use of
cornhusk in making textile fabric is the key to what they’ve been looking for.

b) Demographic Segmentation

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Agri Fabric can cater the need for the fabric in the international market place because
there are a lot of corn-growing farm not only in the Northern part of the country but also
at the Southern. So even if the demand for it goes high, corn husks fabrics will have
stabilized supply. Cornhusk has been proven to have fiber that is more stretchable than
any natural cellulose fibers. And placing them in the international market place can be a
big risk but a larger potential for it to last longer in the business because researchers has
proven that with proper and further continuous researches, cornhusk fabric will be a
future competitor of cotton in the market.

c) Psychographic Segmentation
Fabric stores wants fabric at the cheapest price they can get and earn larger profit. Since
cornhusk fabric offers low price, fabric stores can sell them at low price and earn from
them at higher rates. Agri Fabrics can offer them lower price on small stores so that they
can afford it.

Critical Success factors identified

 Solvent Demand
Agri Fabrics has a low solvent demand. This is mainly because cornhusk fabrics
are not yet offered in the country but are being made in others such as America. It
is not yet known by other manufacturers and that it is not yet being considered by
them in the choices of raw materials for fabric. What will make it stand out is
when we talk about environmental sustainability and alternatives. Instead of
considering it as a farm waste and leaving it to enrich the soil, it has more to offer
than just what we know.
Most manufacturers today became more aware of the raw materials they use in
making product. This is because clothing is a necessity which makes the demand
go higher and double in the past and future years. But we also know that natural
raw materials are limited. So we need to take in consideration of this. Given that

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we have a land to grow fibres, don’t we take in consideration that the land can be
used to grow for food too? If we are to grow corn, we can have both food and
fiber in the same time. It is also more cost-effective than that of cotton and other
fibres use.
Another argument is that of oil-based synthetics. In defence to this, the price of
petroleum nowadays continues to increase in the international market place
because of oil shortage which increases the price of synthetics. Corn is grown
worldwide while cotton and oil are not to be easily found in every corner of the
world. According to the researcher, fibres from corn husks have better stretch
ability compared to any other natural cellulose fibres. That makes it comfortable
to be spun together with synthetic fibres with are usually mixed with cotton in the
process of making textiles.

Recommendations

 Make sure to build a satisfying good relationship with the customers through seminars
and recommendations from clients. Clients will make big impact since it is the
manufacturers that are catered in the business.
 Continuous improvement of the product through research and development are needed so
even when the business reaches its peak or maturity stage, the business will remain.
 Since the business is new to the market, intense promotional activities are needed but
only those which suit the product. It should focus on making awareness on people to
consider the product.
 Aside from building relationship with the clients, sustainable relationship with the
suppliers is a must especially that most of the farm owners give the raw materials for
free.
 Extensive seminars are needed and updated technology should be taken in consideration
for the business to be handled right and properly.
 Take in consideration that the raw materials are natural and should always remain natural
for the benefits of the clients.
 Trends on the market place should be studied properly because it is a big risk that are
being talked about and most of the competitions are already built in the market for years.

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