PATTS COLLEGE OF AERONAUTICS

Senior High School Department

May 2021

FUELER CORPORATION
A Business Plan

In Partial Fulfillment for the

Subject Requirement in Entrepreneurship
Academic Year 2020-2021

PROPONENTS

BAYLON, Amiel Dean S.

BICO, Norman Anthony D.
BRAGA, Marc Jason B.
CABATIC, Justinn Carl P.
CAPARAS, Aldwin Dwight J.
CARPO, Rheinhallt Quisha R.
Grade 12 - WRIGHT

SUBMITTED TO

Mr. Virgilio S. Dolina

Instructor, Entrepreneurship

Lombos St, San Isidro, Parañaque City, 1700

Manila, Philippines

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 TABLE OF CONTENTS

Introduction 2

Executive Summary 4

Environmental and Industry Analysis 6

Description of the Business 8

Production Plan 11

Operations Plan 13

Marketing Plan 17

Organizational Plan 21

Financial Plan 29

Assessment of Risk 36

Timetable/Milestone 38

Appendices 41

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 INTRODUCTION

BUSINESS NAME LOCATION

FUELER CORPORATION CW0032 Warehouse, Municipality of

Greener Air? Try Fueler! Guiguinto, 3015 Bulacan, Philippines

NAME AND CONTACT INFORMATION OF BUSINESS OWNERS

NAME CONTACT INFORMATION

BAYLON, Amiel Dean S. Address: 3463 Juan Fermin St., Tambo, Parañaque city
E-mail: amielbaylon02@gmail.om
Phone number: 09653140410

BICO, Norman Anthony D. Address: 84 Judge Olega St. Brgy. Gomez Lopez, Quezon
E-mail: 4normananthonybico@gmail.com
Phone number: 09284675122

BRAGA, Marc Jason B. Address: Sec. 3 Blk. 4 Lot 23 Sunny Brooke 1, San
Francisco, General Trias Cavite.
E-mail: bragafrancismarc18@gmail.com
Phone number: 09204974891

CABATIC, Justinn Carl P. Address: B1 L3 Tegen St. Maria Salud Subd. Phase 2,
Salinas 1, Bacoor City, Cavite
E-mail: justin.022002@gmail.com
Phone number: 09054443961

CAPARAS, Aldwin Dwight J. Address: B18 L28 P3 Camia St. Maryhome Subd. Brgy.
Molino 4, Bacoor City, Cavite
E-mail: aldwincaparas08@gmail.com
Phone number: 09263876795

CARPO, Rheinhallt Quisha R. Address: #14 Burgos St., Brgy. Calomboyan San Quintin,
Pangasinan
E-mail: rheinhalltquisha0621@gmail.com
Phone number: 09774429496

BUSINESS NAME AND OVERVIEW

Fueler Corp. is a biofuel manufacturing company that aims to reduce greenhouse gas
(GHG) emissions while minimizing the emerging risk of upward fuel trends and price volatility.
Fueler recognizes the rapid increase of carbon emissions caused by aviation and seeks to provide
a sustainable and cheaper fuel for the significant use of flight schools and airline companies.

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BUSINESS ADDRESS

Fueler Corp. is located at CW0032 Warehouse, Municipality of Guiguinto, 3015 Bulacan,

Philippines. It will become a strategic place for the company where nearby flying schools are
located, which will make it easier for us to reach them when we are offering our products and
services. The New Manila International Airport will be constructed in Bulakan, Bulacan where
we can reduce the transportation cost and lower the price when we start to offer our products to
airline companies.

NATURE OF THE BUSINESS

Manufacturing Business- a type of enterprise that transforms specific raw materials

(agricultural residues) into new products (aviation biofuels). The manufacturing process involves
the integration of agricultural residues, human labor, and other related overhead costs. The
production covers extensive heating, operating pressure, and enzymatic treatment, hence,
involving mechanical, physical, and chemical processes. The business is structured as a
corporation operating under the mandates of Amiel Baylon, Norman Bico, Marc Braga, Justinn
Cabatic, Aldwin Caparas, and Rheinhallt Carpo.

STATEMENT OF FINANCING NEEDED

Money is an essential factor to make things happen. The company will have to apply for
a business loan from banks which will be the main source of funds as soon as the business starts.
Another possible option is to find and collaborate with investors who can fund the business.
Angel investors are one of the angles the company is trying to look at because these are not just
ordinary people but rather they are also entrepreneurs who are capable of funding the business
which they find interesting.

The money is being requested in the hopes of starting the business as soon as possible.
With great assurance, the funds which will be collected will be used for the business itself
excluding every non-essential thing that is not related to the venture. The generated funds will be
used accordingly in the various aspects as follows: a. Human Labor; b. Machines; c. Plant; d.
Raw Materials e. Location of the Business and lastly f. Technology Purchases.

STATEMENT OF CONFIDENTIALITY OF THE REPORT

Fueler Corp. is a trusted provider of biofuels to flight schools, and airlines throughout the
Philippines. Fueler Corp. will maintain in confidence all sensitive information provided to Fueler
Corp. by the flight schools, and airlines in connection with the services to be performed by
Fueler Corp. and will use such Confidential Information only for its intended purpose. Fueler
Corp. will not disclose confidential information to any third party except as necessary to fulfill
the services to be performed by Fueler Corp. for the flight schools, and airlines.

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 EXECUTIVE SUMMARY

According to the Environmental and Energy Study Institute (2019), a total of 21% surge
of carbon emission happened from 2013 to 2017. Studies have shown that 2.4% of the world’s
total carbon dioxide emission came from the aviation industry in the year 2018. Another
considerable fact is that the economic health of air transportation had been greatly affected due to
the health protocols imposed by health experts because of the COVID-19 Pandemic. Considering
all the restrictions being implemented throughout the globe, numerous flights have been canceled
and banned which results in a massive loss in the total revenue of the airlines.

With all the facts provided above, Fueler envisions an economical market and greener
environment while promoting biofuels from the land through the air. Fueler decided to
manufacture a fuel that can be used by airlines as a response to the two main problems that the
proponents aim to resolve. Biofuel will be more eco-friendly than a normal jet fuel given its
minimum emission of carbon dioxide in the atmosphere. Secondly, the biofuel that the company
will be manufacturing will be cheaper than those that are already available in the market. This is
because, in the manufacturing process, Fueler Corporation will be using feedstocks from
agricultural wastes as the main ingredient to produce the biofuel. This cheap but quality product
will help airlines to at least have savings especially these times that the pandemic is still striking
the global economy. While Neste and World Energy are two of the major competitors in biofuel
production, both companies are bounded internationally. That is, Fueler will be taking advantage
of its geographical location for the customers situated in the Philippines.

In initiating the business venture, the target market of Fueler Corporation would initially
be the aviation schools in the Philippines. In a sense, aviation schools are only using small
aircraft in comparison to the ones used in commercial flights. With that being said, they are only
in need of a low fuel supply. Since the company is still a starting business, the proponents have
to start with low production of biofuel. Starting from aviation schools will be advantageous for
the company since it will add up to the company’s credibility as a quality manufacturer of
biofuels. As time goes by, Fueler Corporation will attract more aviation schools and will create a
way for airline companies to eventually recognize our product. The company will be situated at
CW0032 Warehouse, Municipality of Guiguinto, 3015 Bulacan, Philippines to become
accessible to one of the major airline companies which is the Bulacan International Airport also
known as the New Manila International Airport.

The proponents seek to utilize the Alcohol-to-jet process (AJT) in manufacturing

biofuels. This process involves three major phases as follows: (1) pretreatment, (2) fermentation,
(3) and distillation. Among the primary equipment and machinery that will be used for the
production are the milling machines, fermentation machines, and distillation machines. Each of
these serves its purpose in each phase of the manufacturing process. That is, the agricultural
residues (raw materials) are to be extracted through milling. Once done with the pretreatment,
the sugar from the wastes will be converted chemically into ethanol. The fermented product will
be filtered to separate pure alcohol from any other residual components. After distillation comes
to the production of biofuels that can be readily available in the market.

The operation would be efficient enough to handle a total production of 2347 liters/587
gallons or approximately 20 barrels of biofuels every day. The company will be offering delivery
services for the convenience of the general aviation flight schools and air transport companies

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(airlines, private, charter) which compose the 30% and 70% total market segmentation of the
company, respectively.

In funding the business, the proponents seek to acquire a total of Php 8.4 million to be
generated from the management investments (Php 4.8 million) and external investors (Php 3.6
million). The generated funds will then be budgeted for various expenses for the business
including marketing, operations cost, production cost, manufacturing cost, miscellaneous and
other unforeseen expenses. Currently, the company has a total fund of Php 4.8 million from the
personal investments of the owners. The remaining Php 3.6 million is sought to be filled by angel
investors. They are crucial in the implementation of the business plan as they cover over half of
the total capital needed to start the entrepreneurial venture of manufacturing and producing
biofuels.

The proponents projected the following assumptions: (1) Fueler Corp. will achieve its
16% annual revenue growth rate, (2) proponents will obtain 8.4 million from personal and
external investments, (3) 10% equity interest rate will be given to the investor(s). Given the
overwhelming depreciation of the aviation market industry due to the current worldwide health
crisis, the company is still expected to gradually increase its overall sales with a 5.91% growth
rate in the next three years.

To ensure the organization of the company, the proponents came up with a corporate
structure consisting of one executive spearheading four major departments as follows: (1)
Marketing Department, (2) Finance Department, (3) Human Resources Department, and
Operations Department. These departments are captained by Aldwin Caparas, Jason Braga,
Justinn Cabatic, and Norman Bico, respectively. The overall president and vice president of
Fueler corporation are Rheinhallt Carpo and Amiel Baylon, correspondingly.

In any business venture, there are unforeseen events. To complement the problems that
may potentially arise, the proponents acknowledged both the internal and external risk factors
that should be addressed and properly managed throughout the entrepreneurial activity. The
internal risk factors include liquidity and financial risk, failure to hire the best talent, damage to
reputation, and failure to innovate. On a side note, among the external risk factors include
business competition, economic shift, natural disasters, political issues, and environmental
issues. Each factor has its corresponding intervention that should be taken into great
consideration.

The proponents aim to advance its marketing style every year. There will be an annual
strategy review to secure more investors and gain a significant number of shareholders not just in
the Philippines but also in the countries across the international borders. Some of the forecasted
advancements include the expansion of the company through business franchising and increased
production through the addition of equipment and required machinery. All these towards the
achievement of a greener air that is breathable and worthwhile.

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 ENVIRONMENTAL AND INDUSTRY ANALYSIS

CONDITIONS OF THE GENERAL ENVIRONMENT

SOCIOCULTURAL CONDITIONS

As time passes by, many unpredictable occurrences may happen and affect the aviation
industry. Thus, these occurrences may lead to the depreciation of the income of various airlines
leading them to search for less expensive sources of flight and jet fuels. Moreover, given a
massive amount of carbon in the airspace, would lead airlines to demand green products and
services.

TECHNOLOGICAL CONDITIONS

Over the past years until today, the developments in science and technology are
continuous; having a beneficial impact on businesses. Scientists now developed different
processing techniques in converting the harvested feedstocks into biofuels. One of the processes
is the Alcohol-to-jet process (ATJ). ATJ has the potential to become a cheaper process compared
to others because the feedstocks are less expensive and easier to obtain. In addition, this process
does not require much energy. Thus the price of biofuels will also drop, matching the airline’s
cheaper and eco-friendly jet fuel preferences.

ECONOMIC CONDITIONS

In June 2017, the World Bank reported their Global Economic Prospects. In their report,
they stated that in 2017 and 2018, the Philippine Growth Domestic Product (GDP) growth rate is
the same at 6.9 percent, and then 6.8 percent in 2019. At the same time, the Asian Development
Outlook was changed by the Asian Development Bank (ADB). They enhanced their growth
projection for the Philippines in 2017 from 6.4% to 6.5%. Then for 2018, the ADB is expecting
the GDP growth from 6.6% to 6.7%.

The fuel demand is expected to increase in the long-term because of the continuous
growth of the economy, matching with the continuous increase of the population. In addition,
due to the DOE's ongoing monitoring of oil companies' strict compliance with the mandatory
biofuel blend. An increase of 5.2 percent in biofuel demand is expected between the years 2018
and 2020. As a result, this adds up to the reasons why the company chooses to manufacture
Biofuel; because of the expected increase in demand for sustainable fuel in the next years.

POLITICO-LEGAL CONDITIONS

The Fueler Corp. would be affected by two laws namely the RA 9367 and RA 9513. The
former seeks to lessen the Philippines’ reliance on other countries with regards to fuels
considering the nature, ecosystems and the preservation of the people’s health resulting in the
country’s long-term economic growth. On the other hand, the latter was created to declare the
government’s devotion to apply further and maximize the country’s use of renewable energy
resources. This act aims to achieve economic growth while reducing harmful emissions to
protect the health and environment.

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 With that said, both laws have a substantial impact on the company’s sales. Both laws
goal promotes the use of renewable energy to protect public health and the environment, hence,
making the demand for the company's product biofuel increase for the next following years.

CONDITIONS OF THE SPECIFIC ENVIRONMENT

COMPETITION

There are five approved means of biofuel production that can blend with fossil jet
kerosene. Currently, the only technically advanced and commercially available biofuels are those
produced by synthesizing esters and fatty acids also known as the HEFA-SPK. These biofuels
are expected to be utilized from the short to medium term.

As of now, there are two major players in the production of sustainable aviation fuel.
First is Neste, Neste is developed the Neste MY Sustainable Aviation Fuel™ which is said to
reduce 80% of the greenhouse gas emissions. Currently, 100,000 tons is Neste’s annual capacity
of SAF production in the United States and Europe. However, in 2023, it is expected that one
and a half million tons of jet fuel will be produced and delivered by Neste after the company
growth of Singapore refinery.

Another one is World Energy, which is one of the biggest suppliers of biodiesel with the
amount of 200,000 million gallons annual production. Their products are BQ-9000 certified and
Q-RIN verified. They have been recognized by the US Department of Energy and Platts as one
of the first companies to deliver biofuel globally.

SUPPLY AND DEMAND

According to Le Feuvre (2019), the expected global oil demand growth in 2030 by the
aviation industry is approximately 15%. Today, there is around 2.5% of carbon emission, the
continuous growth in the oil demand will increase this emission to 3.5% by 2030. This
significant growth suggests the need to discuss alternatives for jet fuels. Sustainable Aviation
Fuel (SAF) such as aviation biofuels are one of the possible alternatives and solutions to
minimize the increase in the industry’s carbon emissions. The aviation industry has been taking
necessary steps to depreciate the amount of carbon dioxide that is emitted by 50% in 2050, as
collated to 2005. Adding aviation biofuel to fossil jet fuel is a huge help in achieving this goal.
This complements the IEA's Sustainable Development Scenario (SDS) projecting that the need
for biofuel shall be met at a rate of 10% and 20% in 2030 and 2040 respectively.

There are only five airports where there is regular biofuel distribution. These airports are
in Bergen, Brisbane, Los Angeles, Oslo, and Stockholm. In 2008, the first-ever flight using
blended biofuel was conducted. After that, 150,000 more flights were done using blended
biofuel. When it comes to the streamlined nature of air transport fuel, 90% of international
flights are operated by 5% of all airports which says that having SAF in few airports may equate
to the sharing of elated demand. In addition, SDS’s goal to reduce carbon emissions pushes the
industry to require a faster market development to achieve the required SAF production.

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 Research pursuits are still underway to effectively assess the efficient use of agricultural
residues and municipal solid wastes in the production of biofuel in the long run. These studies
will help in the source of production and it improves the chance to commercialize biofuels. On
the other hand, fuel is one of the highest expenses of airline companies. Today, SAF is more
expensive compared to jet fuel, which poses a threat in the plan to use biofuel. Despite this, it is
suggested that the additional expense in fuel can be taken from the airline’s ticket cost. There is a
15% additional cost for a ticket on a flight that uses blended biofuel such as HEFA. Compared to
other reasons that could cause an additional cost on the plane ticket, an additional cost that will
help reduce carbon emissions isn’t that high.

The utilization of aviation biofuels has been progressing since the first flight in 2008.
But, to reduce the carbon emissions caused by the industry, further technological development
and further economic studies about this are needed. Also, the proposal of policies that would
account for the use of aviation biofuels will help provide stability in the supply and demand of
biofuels during the aviation industry’s transition of its usage.

DESCRIPTION OF THE BUSINESS

PRODUCT/SERVICES

With the increasing number of demands in air travel, an increase in oil demand is also
assumed. The company aims to provide fuel for the aviation industry which will be eco-friendly.

The company seeks to help the aviation industries’ commitment to reducing carbon
emissions by 50% with the help of providing a biofuel that is made out of feedstocks from
agricultural residues.

Since biofuels are made from those resources that are renewable and less flammable, it is
believed to be more efficient than a normal fossil diesel. According to various articles found
online, the pricing of biofuel and gasoline are the same. However, the savings, in the long run,
will be higher compared to the savings when buying a normal fuel.

Another thing is that biofuels are easy to source since they will be made from renewable
resources which in this case are the feedstocks.

Lastly and most importantly, biofuels are helping to reduce greenhouse gases up to 65
percent especially in an industry where the demands are high.

SIZE OF THE BUSINESS

The workforce of Fueler Corp. is composed of 58 employees with diverse backgrounds

and high-caliber professional experiences in the field of marketing, production, financing,
operating, and holistically maintaining a stable market amid a competitive industry of fuel
manufacturing.

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MISSION & VISION STATEMENT

MISSION

‘’Promote biofuels from the ground through the air’’

Fueler is passionate about bringing innovation into the competitive industry of aviation
fuel. It is the first-ever biofuel company to pioneer the extensive use of agricultural residues in
the Philippines. Through the aid of research and development, the wonders that lie on the deepest
of the ground are sought to be transformed and marketed not just in the sector of agriculture but
of the emerging industry of aviation in the greater picture.

VISION

‘’A greener air worthwhile’’

Fueler envisions the field of air transportation as an absolute agent of environmental

protection and economic growth. The company endeavors to achieve cleaner air through the
production of sustainable biofuels. Fueler will continue to generate reasonably-priced and
premium products in the future while staying rooted into the core of the company- to have a
breath of fresh and greener air that is ultimate and worthwhile.

CORE VALUES

FOCUSED - We are focused on our future goals and continue to develop our products and
services to be the top in Biofuel production.
UNITY - The company sees no authoritarian approach to the employees and customers but
instead recognizes the differences of everyone and gives the needed resources to come up with
an equal outcome.
EQUITY - The company recognizes the differences and needs of everyone with no
discrimination.
LEADERSHIP - Ability to create a strategy and turn it into motion and provide desired results
effectively and efficiently.
EXCELLENCE - We are passionate about our products and services that we offer and aim to
provide our customers the highest quality at all times.
RESPECT - The company sees everyone worthy of appreciation and value. Thus, giving
everyone the dignity they will hold within the workplace.

LOCATION OF THE BUSINESS AND ITS MAJOR PHYSICAL ASSETS

The company's office and plant are in Guiguinto, Bulacan, and are in a commercial zone
with easy access to traffic. The area in which the business is located is large enough to
accommodate future development. The building will be leased, and the terms of payment are
2months advance/ 2months deposit. The rental cost is ₱120,000 monthly (VAT and CUSA are
not included). The building is old but can still be used to run a new business. But in the long run,

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the building might need renovations for safety, and also to make it a pleasant workplace. All the
equipment needed will be purchased. These equipment are the reagent tank, reactor tank,
distillation flask, condenser, and vessel.

BACKGROUND OF THE BUSINESS OWNERS

Amiel Dean Baylon is dedicated to contributing all of his expertise and experiences to the
advancement in the industry of aviation fuel, and the betterment of the environment. He
graduated from PATTS College of Aeronautics with honors. His innovative mind pushed him to
make a business that produces biofuels because he thought that it would have a great impact not
only on the aviation industry but also on the environment. With that said, he is ready to
overcome any situation and challenge that he and the company will encounter along the way.

Norman Anthony Bico is dedicated to putting forth innovation in the industry of aviation
fuel. He graduated from PATTS College of Aeronautics with honors. With his extensive skills in
research and development, he has gained his passion for the production of biofuels from a mere
agricultural residue. Norman came from a family of entrepreneurs. Such that, he is called to
become a risk-taker creating his brand in the emerging industry of aviation.

Justinn Carl Cabatic is devoted to leading all his resources to progress in the aviation fuel
industry and to environmental sustainability. He is a graduate of PATTS College of Aeronautics
with honors. He has acquired his enthusiasm for the advancement of biofuels from simple waste
through his complete skill in innovative work. With his zeal and passion, he is ready to conquer
everything in the business industry.

Aldwin Dwight Caparas is committed to pouring all his skills and knowledge into the
development and innovation in the industry of aviation fuel. He graduated from PATTS College
of Aeronautics with honors. His love for aviation is what pushed him to make a change in the
aviation industry such as the production of biofuels. He decided to continue because he sees this
innovation as beneficial not just for the industry but also for the environment and the economy.
With this being said, he is willing to face and overcome any challenges that the company will
encounter.

Marc Jason Braga is dedicated to his responsibilities as VP of Finance and helps to

promote the use of Sustainable Aviation Fuel (SAF) in the aviation industry. He graduated from
PATTS College of Aeronautics with honors. With his passion for aviation as well as his concern
for the environment these factors give him a motivation to reduce the carbon emission of the
aviation industry through the production of biofuels. He continues to pursue the production of
biofuels because he saw the opportunity that he can help aviation transition from traditional
Avgas to Sustainable aviation fuel. Braga, with his vision to change the aviation industry, is
committed to the company whatever it takes.

Rheinhallt Quisha Carpo is geared towards the aim of helping the aviation industry in
promoting less carbon dioxide emissions. She is a graduate of PATTS College of Aeronautics
having the award for academic excellence. It was her love for the environment as well as
aviation that made her decide to push through with the enterprise of producing eco-friendly fuels
for aircraft. She realized that the production of biofuels will help the aviation industry to

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contribute to healing the planet Earth. To wrap everything up, Carpo, with her overflowing
passion for aviation and love for the environment, is willing to undertake the struggles and
challenges that she and the company will have to face.

PRODUCTION PLAN

MANUFACTURING PROCESS

Figure 1. The Production of Jet Fuels

The manufacturing process is known as the “Alcohol-to-jet process.” It uses the

fermentation of cellulose and sugars. There are actually 3 main steps or stages that should be
done to come up with an efficient biofuel namely: a. Pretreatment; b. Fermentation; and c.
Distillation. The pretreatment phase is a chemical process that is geared towards making simple
sugar out of the complex polysaccharides. It is always necessary to prepare the raw materials
before going into a more complicated process. Pretreatment allows the biomass structure to be
broken into fermentable sugar. It is where the extraction of sugar takes place through the use of a
milling machine. Afterwhich, fermentation takes place wherein chemical reactions occur to
convert the sugar into ethanol. It is usually caused by yeasts or bacteria or even a fermentation
apparatus can also be used. After the fermentation process, the distillation of the mixture comes
next. In this process, the main goal is to separate the pure ethanol from other substances using a
distillation machine. The machine boils the mixture by the heater and then evaporates it to be
condensed at the top of the apparatus and produces the ethanol from the joined tube. This whole
process is known to be cheaper and efficient since feedstocks from agricultural residues are easy
to obtain and the process itself does not require too much energy to be used.

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PHYSICAL PLANT

Figure 2. Fueler Physical Plant

MACHINERY AND EQUIPMENT

Figure 3. Machines and Equipment for Manufacturing

The milling machine, fermentation machine, and distillation machine are the three major
machines involved in the production of biofuels. The names themselves suggest their purpose.
The milling machine is necessary to eliminate the excess parts of the raw materials. Whereas, the
fermentation apparatus is responsible for the conversion of the extracted sugar into byproducts of
ethanol during enzymatic reaction. It is primarily composed of two bits of equipment namely the
reagent tank (vessel for the compound to be added in the system) and the reactor tank (vessel for
mixing chemical substances). As such, the distillation apparatus is responsible for separating the
pure ethanol from the mixture. It is primarily composed of three bits of equipment namely the
distillation flask (for heating), condenser (for vaporization), and a vessel (for collection). All of
these three machines are composed of sumps (activator) and liquid storage (repository).

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SUPPLIERS OF RAW MATERIALS

DALIG RICE MILL

Dalig Rice Mill is located in Balagtas, Bulacan. It has been providing milling services
since 1990, hence, it is a trusted milling company that provides quality products. We chose the
Dalig Rice Mill not only because of its quality products but also because of its affordable price.

It only sells darak (rice bran) for only ₱10/kilo which is low compared to the price of
other suppliers. In addition, Dalig Rice Mill is only 15-30minutes away from Guiguinto in which
Fueler Corp. is located. Thus, the company’s expenses in transporting the raw materials will not
be that expensive.

SWEET CRYSTALS INTEGRATED SUGAR MILL CORPORATION

Sweet Crystals Integrated Sugar Mill Corp is one of the 7 sugar mills located in Luzon
and is located in Barangay Planas, Porac, Pampanga. The company chose Sweet Crystals
Integrated Sugar Mill Corp not just because of its company reputation, but also because it is the
nearest sugar mill to our business location. In addition, the company sells its quality product for
an affordable price.

FUTURE CAPITAL EQUIPMENT NEEDS- BRAGA

EQUIPMENT ESTIMATED COST

Milling machine (1-4 Set) PHP 279,162.50

Fermentation machine (set) PHP 291,271.20

Distillation machine PHP 101,944.92

Total estimated cost PHP 672,378.62

Table 1. Cost of Equipment for Manufacturing

OPERATIONS PLAN

DESCRIPTION OF THE COMPANY’S OPERATION

The purpose of this chapter is to provide a written understanding concerning the means
and methods that will be used to manage and execute the given scope of the business plan. All
internal and external operations must be planned with utmost consideration given the safety and
efficiency. Thus, the objective of this section is to create a well-developed production scheme
that focuses on speed, quality, and flexibility in line with worker’s rights.

A. 6 M’S OF OPERATION

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 1. MONEY

The starting capital will start with the personal finances of the six founding members.
The initial capital will then be assessed to determine the size of the loan needed for the initial
phase of the business. After establishing the starting capital and acquiring assets, investors and
business loans will make up the business’ working capital.

2. MEN

For the whole operation of the company, employees will be divided into four main
departments. The finance department will be responsible for the cash management and planning
of expenditures. As such, the marketing department will serve as the facet of the company
handling all the promotional activities of the company. As for the production department, they
will be responsible for managing machinery and manufacturing the products. The human
resources department will manage all the recruitment and training and is responsible for
maintaining employee relations, payrolls, benefits, and compliance with labor laws.

3. MATERIALS

The Philippines has enormous supplies of biomass assets, including farming yield
buildups, wood deposits, animal waste, agro-modern waste, and amphibian biomass. Rice hulls
and other coconut scraps are among the most widely known agrarian wastes that can be utilized
in the production of biofuel. This utilization of economically created horticultural buildups
changed over into biofuels is expanding in the Philippines, as non-renewable energy source costs
keep on rising. Rice husks are maybe the main immature biomass asset that can be completely
used in an inexhaustible and practical way for the production of electrical force, heat, and fuel.
Bulacan which is the possible location of the biofuel plant is still predominantly agricultural,
despite recent massive land conversions.

4. MACHINES

There will be three main machines that are essential for the production of biofuel namely:
a. Milling Machine; b. Fermentation Machine; and c. Distillation Machine. The milling machine
will serve as the first machine to touch the raw materials. It will be responsible for the
pretreatment phase because it will eliminate the unnecessary substances on the materials that are
to be fermented. The fermentation machine is involved in the fermentation process wherein the
conversion of sugar to ethanol substances is made through enzymatic reactions. In the
fermentation machine, there will be two containers named the reagent and reactor tanks
respectively. The former will serve as the vessel for the mere compounds that are to be added to
the mixture. On the other hand, the latter will be the one responsible for mixing the chemical
substances altogether. Also, the refining of the products happens during fermentation since the
machine makes these sugars, oils, or gases into intermediate molecules which will then be turned
into products such as bioethanol. The last machine is known as the distillation machine which is
responsible for separating the purified ethanol from the mixture. The machine has three parts
which are the flask, condenser, and vessel. The flask is responsible for heating the mixture while
the condenser is used for vaporization processes. Heating the mixture will allow the ethanol to
evaporate separating it again from any other unnecessary substances. Lastly, the vessel is used
for the collection of the final product.

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 5. METHOD

The feedstock is then produced when it has been harvested or collected. The production
of biofuel avionics fuel in particular has two cycles: a. BtL; and b. HEFA. A basic line of the
HEFA interaction (or HRJ) is that biomass such as Green Growth, jatropha or camelina is
squeezed into the oils which then are refined into stream fuel, which refines the unrefined fossil
oil. An additional substance: meal is one of the various results of the squeezing cycle. This food
can also be used in general. For example, the strong accumulations left by the handling of
jatropha can be used as a fuel in flames and oven consumption. The food from the creation of
green growth oil can be used for manure, feed and other purposes and camelina meal can be used
for feeding animals. Then, again, the feedstock is divided through gasification in the BtL cycle
and a combination of the biomass and the hydrogen in a greater temperature range (>700 °C) is
present with a certain amount of oxygen to supply blend gas. The Fischer Tropsch measure then
transforms this gas to a fluid-fly fuel.

6. MANAGEMENT

The management of Fuel Air Corp. will be subdivided into four main sectors which are
the marketing, finance, human resources, and manufacturing sectors. Rheinhallt Carpo and
Amiel Baylon will serve as the overall president and vice president of FuelAir respectively.
Aldwin Caparas will be the head of the marketing sector and will serve as the Vice President for
Production. Jason Braga will be the head of the finance department and will be responsible for
monitoring the cash flow and revenue of the company. The Human Resources department will be
managed by Justinn Cabatic who will be responsible for employee relations and recruitment.
Lastly, Norman Bico will lead the manufacturing sector and will monitor the production and
development process of biofuels as the Vice President for Operations.

FLOW OF ORDERS FOR GOODS AND SERVICES- CAPARAS, BRAGA, BAYLON

Figure 4. Fueler’s Production Flow Chart

Page | 15
 The operation would be capable of producing an estimated 500 liters of biofuels every
day. Our customers are expected to receive the biofuels at their locations. We will provide the
transportation and the cost will be cheaper because our site is near to the customer's location.

Our framework will endeavor to achieve administration greatness as well as assembling

quality items. This is achieved by using state-of-the-art assembly technologies for advanced
manufacturing techniques. This will likewise bring about low creation costs being accomplished
by the organization. We also want to guarantee that our suppliers are dedicated and efficient so
that the end customer is not discarded as regards product quality and delivery time.

Fueler Corporation acquires the majority of its raw materials from providers in the
Philippines. We want local suppliers because we are committed to fair trade and the promotion of
local businesses. As a result, the local communal and commercial producers will obtain raw
materials, including forage stores, livestock waste, agro-moderate waste, cocoon shell husk, and
coconut coir to reduce costs and ultimately help the final user. The significant benefits of doing
so are Higher margins, quicker payments, and lower payment defaults.

Since the raw materials are the ones needed to proceed with the entire process, the
company ensures that responsible people are tasked to verify the accuracy of volume and quality
of the shipment during the non-loading process. The acceptance of quality non-confirming raw
materials will only be raised when the Managing Director who is tasked to analyze them gives
his approval towards accepting these. FUELER expects to use each asset to the fullest
conceivable degree. We understand that there will be plenty of results that will be created from
our creation of the principle product offerings. However, in order not to pollute the atmosphere,
we intend to use by-products as much as possible. This will guarantee that our assets are
completely used.

Figure 5. Fueler’s Distribution Flow Chart

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 MARKETING PLAN

MARKET ANALYSIS SUMMARY

Projections indicate that over the next few years, global flight and jet fuel requirements
will rebound. With a substantial amount of carbon in the airspace, there is also a need for
environmentally sound energy. In recent years the total CO2 emitted by the aviation industry has
grown rapidly, according to the Environmental and Energy Study Institute (2019). In addition, by
world meter, The world has proved its annual demand reserves 46.6 times as much. It has about
47 years of petroleum left. The market incorporates a range of components that generate demand
for biofuels as much as it exists at the moment.

1. Aviation and its clients are dedicated to climate change resolution and use renewable
aviation fuels in the coming decades to minimize carbon emissions.
2. The ITAKA European initiative has also influenced Airbus, which seeks to speed up the
marketing of renewable aviation fuel in Europe.
3. Boeing has dedicated itself to making its commercial airplanes 100% sustainable aviation
fuels (SAFs) certified and able to operate by 2030.

Our company will manufacture Sustainable Aviation Fuel (SAF) regarding the major
changes in the aviation industry that aims to reduce carbon emission in the next decades. We will
focus on our future goals to meet the demand of the market in the near future. We will ensure
that the products that we will produce in the market will follow the required standards of aviation
fuel and ensure the quality of our fuels.

MARKET SEGMENTATION

FUELER is focusing on the air transport and general aviation sector, which utilize more
avgas and intends to use SAF in the future. The air transport sector will range from the airlines
that form a major part of the market to the general aviation industry with fewer trainer aircraft,
our first target on production. These are potential customers who soon support and reduce their
carbon emissions. We are looking forward to offering international airline companies to seek a
shift from the normal avgas they often have to sustainable aviation fuel (SAF).

MARKET ANALYSIS

Market Segment Percentage Year 1 Year 2 Year 3 CAGR

General Aviation Flight 30% 9,436,176 10,285,430 11,211,120 5.91%

Schools

Air Transport (Airlines,

Private, Charter) 70% 22,017,744 23,999,337 26,159,280 5.91%

Total 100% 31,453,920 34,284,768 37,370,400 5.91%

Table 2. Target Market Segmentation

Page | 17
 Figure 6. Fueler’s Percentage of Market Segmentation

SALES FORECAST

Sales Forecast (Yearly)

YEAR 1 2 3

Sales Php 31,453,920 Php 34,284,768 Php 37,370,400

Operating Cost Php 18,121,248 Php 18,799,968 Php 20,388,864

EBITDA Php 10,187,280 Php 12,056,304 Php 13,244,496

Taxes, Interest, and Php 4,783,152 Php 5,227,948 Php 5,649,168

Depreciation

Net Profit Php 5,404,128 Php 7,111,920 Php 7,878,192

Table 3. Pro Forma Profit and Loss (Yearly)

Page | 18
 Figure 7. Sales, Operating Costs, and Profit Forecast

MAIN COMPETITORS

Fueler Corp.’s main competitors will vary depending on the price and the amount of fuel
being offered by other companies. The following are the company’s competitors:

Major Jet fuel Companies

➢ BP
➢ Chevron
➢ Exxon Mobil
➢ Valero
➢ Marathon Petroleum Group

Major Biofuel Companies

● Europe
➢ Eni
➢ Neste
➢ SkyNRG
➢ Velocys

● United States of America

➢ Aemetis, Inc.
➢ Fulcrum BioEnergy
➢ Gevo
➢ World Energy

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Start-up Biofuel Companies

● United States of America

➢ Hypoint, Inc.
➢ Red Rock Biofuels
➢ SG Preston Company
➢ Sundrop Fuels, Inc.
➢ ZeroAvia, Inc.

OUR ADVANTAGES

In comparison with major jet fuel companies, biofuels offer more benefits than jet fuels.
Biofuels work more efficiently with the aircraft’s engines since it improves engine lubrication. It
also extends the engine life because the materials used for its production are more eco-friendly
compared to jet fuels which emit high amounts of carbon dioxide. The aviation industry is also
starting to recognize these advantages making it possible to increase the demand for biofuels
shortly.,

Diesel and gasoline come from crude oil which is known to be a non-renewable resource.
Crude oil prices are starting to rise nowadays, this suggests a need for an alternative source of
energy. These alternative sources of energy could come from feedstocks. This means that the
utilization of natural resources and materials could lead to agricultural growth.

In terms of the other biofuel manufacturers, one of the biggest advantages of our
company is its location. As of now, we are the only biofuel company in Asia that offers
sustainable aviation fuel. Asia is the biggest continent in the world. This implies that there are a
lot of different airports and airline companies that we can negotiate with. Also, being an Asian
Company means we can use it as a marketing strategy to have a bigger chance of gaining the
trust of customers in Asia.

The expensive cost of biofuel production is one of the reasons why it is hard to push the
use of biofuel in aviation. Different airline companies and airports see more of the negative
effect of biofuel rather than its positive effect in a long period. Having a cheaper process in the
production of biofuels results in offering a cheaper price to the market. This means that it can
help the company to obtain more customers compared to other major companies making Fueler
Corp. stand out from the others.

STRATEGY AND IMPLEMENTATION SUMMARY

Fueler’s implementation of products will start by targeting small consumers. One of the
small consumers considered by the company is flight schools. Since Fueler Corp. is a start-up
company, it is also looking forward to producing smaller amounts of fuel at first.

The aircraft used in flight schools only require a lower amount of fuel, unlike airliners
which use greater amounts of fuel. With this strategy, the company will be able to grow from
time to time until it can provide sustainable aviation fuel to every airline company all over the
world.

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PRICING STRATEGY

Since the company’s primary ingredients in producing biofuels will be raw materials like
rice bran, sugar canes, and agricultural waste. Our company can afford to set the Biofuel’s price
lower than the price of other competitors’ jet fuel or biofuel. The price of our biofuel will be
cheaper by 5%, but still, the quality of it will be as high as the other biofuels available in the
market.

DISTRIBUTION

The second source of income will be generated from the distribution of the biofuel
products to various aviation schools and airline companies that have large biofuel needs. Fueler
Corporation will work with a courier company that will deliver the products to the clients. The
business will earn a contribution margin of 20% on the company’s distribution and logistics
operations.

PROMOTIONS

Fueler Corp. has a long-term plan to develop distribution networks all around the
Philippines, but to achieve this, we will start to build the reputation of our brand to be well
accepted in Bulacan and other near cities before venturing out. To promote and advertise Fueler
Corp., we intend to use the following strategies:

● Position our billboards and banners in areas where they can be seen by our target
customers.
● Brand all of the official vehicles of the company and ensure that the staff members wear
our branded uniforms regularly
● Use TV & radio stations, and newspapers to promote and advertise our company
● Use of internet and social media platforms like Facebook, Youtube, Instagram, Twitter,
and the likes to promote our business.

ORGANIZATIONAL PLAN

A. MANAGEMENT SUMMARY

Fueler Corporation is anchored by four major departments as follows:

1. Marketing Department- It is responsible for the promotion of biofuel through a myriad

of platforms. The marketing department seeks to reach out to the public sphere to gain a
significant number of potential customers. Such an organization is composed of a chief
marketing officer/vice president for production, a market research expert, and a public
relations team consisting of a digital manager, content manager, social media manager,
and copywriter.

Page | 21
 2. Finance Department- It is responsible for the overall management of funds and cash
flow of the organization. The finance department is in charge of budget allocation
ensuring that there are sufficient funds to meet the day-to-day financial needs of the
company. Such an organization is composed of a chief finance officer/vice president for
finance, budget analyst, payroll administrator, bank analyst, auditor, and a team of 4
accountants.

3. Human Resources Department- It is responsible for the staffing of employee and labor
relations including the process of hiring, firing, and other numerous related training. The
human resources department ensures the high-caliber performance of the employees in
the workplace. Such an organization is composed of a chief human resources officer/vice
president for human resources, an HR generalist, and a team of 4 service specialists
focusing on each of the four departments.

4. Operations Department- It is responsible for the manufacturing of agricultural residues

into quality biofuels. The production department is in charge of any possible repairs if
there is damaged machinery. It ensures the efficient production of biofuels to meet the
target quota for export. Such an organization is composed of a chief production
officer/vice president for operations, a chief engineer, a pair of scientists, technicians, and
engineers, a team of personnel with 20 factory workers, and 10 delivery personnel.

These four departments are under the strict supervision of the overall president working
hand in hand with the overall vice president. The former is responsible for decision-making and
project implementation. The latter is the second in the command chain who is expected to assist
the president in fulfilling its administrative and operational responsibilities. The organizational
team of Fueler Corporation will uphold serviceability while achieving the ultimate goal of the
company which is to provide sustainable and cost-effective biofuels for the attainment of a
greener environment. That is, Fueler will:

● practice and implement the 8 Rs of Human Resources which are rewarding, recruiting,
routing, recycling, resonating, retaining, reviewing, and retooling with the help of the
Human Resources department and Operations department;
● focus on providing quality customer service by identifying problems and proposing
solutions with the strategic plans made by the Marketing department and Finance
department;
● seek the market trend and still provide high quality and low-cost products with the
research and development and creative skills of the Operations department;
● supervise the production process and assess sales report to monitor problems, losses, and
profits of the company by the Finance department; and
● conduct and assess board meetings and monthly evaluations for the employer’s
performance in different departments with the supervision of the overall president of the
company.
● always seek innovative ways to remain a competitive player in the emerging industry of
biofuel production.

Page | 22
B. ORGANIZATIONAL CHART

Figure 7. Corporate Organization of Fueler

C. FORMS OF OWNERSHIP

Fueler Corporation aims to produce biofuels that are eco-friendly and somehow
affordable for most aviation schools and airlines as well. The biofuel will be made out of
feedstocks coming from agricultural residues. To arrive at the objectives set by the company,
Fueler Corporation formed the team having one goal to aim: to make Fueler Corporation a
high-quality manufacturer of biofuel pioneering the extensive use of agricultural residues in the
Philippines. With this being said, Fueler Corp. will have an agreement with Dalig Rice Mill for
the supplies of agricultural residues and Sweet Crystals Integrated Sugar Mill Corporation for
sugar canes at such an affordable price.

Fueler Corp. together with Dalig Rice Mill and Sweet Crystals Integrated Sugar Mill
Corporation will continue to stick with the goals and objectives being settled while protecting the
entire environment same as through with the employee’s safety and well-being. Following the
agreement of Fueler Corporation and its partners in the business venture, the companies will

Page | 23
strictly abide and comply with the government policies and laws regarding business and
employment.

The biofuels to be manufactured by the Fueler Corp. are made out of feedstocks coming
from agricultural residues which are inclined in the field of agriculture. Thus, permits and
licenses coming from various government agencies will surely be prioritized and applied before
the operation.

The management team of Fueler Corporation is composed of six, first-time business

holders and in line with this will be the application of business permits from their respective
Local Government Units (LGUs) which will be done before they could officially start the
business. The said permit is a requirement of the law and is the one being demanded applications
of business loans, government financial assistance programs, and the like. Other documents like
the Bureau of Internal Revenue Form 1903, articles of partnerships for business registration,
barangay business clearance, Department of Trade and Industry (DTI) Business Name (BN)
Registration Certificate will also be accomplished following the laws set by the Philippine
government.
.
For the business to be officially legal, the articles of partnership with Dalig Rice Mill and
Sweet Crystals Integrated Sugar Mill Corporation will be obtained from the Securities and
Exchange Commission (SEC). The employees of the Fueler Corporation will also be registered
on the following government-mandated permits which include: SSS Employer’s Registration;
PhilHealth Registration; PAG-IBIG Registration; and Department of Labor and Employment
(DOLE).

The various permits and licenses required in running a business mentioned above will be
prioritized and acquired to give the employees as well as the company itself, protection and
assurance if ever problems arise. These will also serve as an advantage for the competitiveness of
the business as it will make the company more reliable and credible in the business industry.

The various legal documents will help in attracting more clients coming from the
different sides of the Philippines as the company can ensure that the business is properly licensed
to operate and that necessary documents are updated.

D. BACKGROUND & ROLES/RESPONSIBILITIES OF THE MANAGEMENT TEAM

The management team of the Fueler Corporation is highly relatable to the 6 important
and most used organs of the human body. These include the brain, spinal cord, ears, head, eyes,
and hands. Each of the starting entrepreneurs has a role to accomplish just how these organs
work for the human body.

President: Rheinhallt Carpo, The Brain

Rheinhallt Carpo, the brain of the Fueler Corporation, is the one who arrived at the
concept of manufacturing a biofuel made out of feedstocks from agricultural residues. With her,
contribution to both the aviation industry and the environment has been finalized. Just like a
brain in the human body, Ms. Carpo became the group leader who is assigning roles for each
member to accomplish.

Page | 24
 She is the designated president of the Fueler Corporation. Being appointed as the leader
of the company, she leads and provides a vivid direction to the rest of her employees. She is
always taking the initiative to allot roles, tasks, and responsibilities suited for every employee of
the Fueler Corp. The works and tasks of each Vice President from varying departments were
always reviewed and evaluated by Carpo as the president of the company.

She does her best to weekly conduct a meeting with the Vice Presidents even though tons
of workload are piled up on her desk. This is to check the weekly progress of the various
departments and also to oversee the production and operations happening in the process of
making the biofuel.

She continuously conducts research to maintain her awareness when it comes to internal
and external competitions in line with the same field. Moreover and most importantly, she leads
the conduct and implementation of strategic plans on how the features of the biofuel can further
be improved and innovative which will be sold to a larger market.

Vice President: Amiel Baylon, The Spinal Cord

Amiel Baylon is tasked to be the Vice President of the Fueler Corporation. With this
being said, he is comparable to the spinal cord of the human body. He, as the vice president, is
the one reporting to the president as he is the second in command within the company. Same as
through with the spinal cord, he is the primary transmission agent of the president whenever
tasks are to be designated among the employees. Baylon is the one transmitting the signals from
the president going to the different departments of the company.

With him being appointed as the vice president, he is duly obliged to report to the
president the various accomplishments, failures, competitions, and problems that arise within the
various departments that directly or indirectly affect the corporation. He is giving the instructions
relayed by the president in a clear and precise manner. He has good communication skills that
the president can be assured that the message she sent will be properly delivered to the
employees with the aid of Baylon as the vice president.

He is giving his fullest abilities to engage in a one-on-one meeting with the president
regularly for the president to monitor and keep track of the progress made within a day. In times
of the absence of the president, he fully takes accountability to maintain the order and high
quality of work in the Fueler Corporation. He also continuously researches to help the president
strategize in innovation the product offered by the company.

Vice President of Marketing: Aldwin Caparas, The Ears

The position of the Vice President of the Marketing Department is fully allocated for
Aldwin Caparas who also serves as the ears of the Fueler Corporation. He proved that to be a
great member, one must be a good listener.

He is tasked to specify the target audience and the target market of the company. Also,
he is a good researcher as he is open-minded and a critical thinker in completing the information
necessary for the task assigned to him.

As the Vice President of the Marketing Department, his responsibility is to plan and
execute the marketing strategies for the biofuel manufactured by the company. He is also tasked

Page | 25
to maintain sales operations and the creation of sales reports for the Fueler Corp. with his
open-mindedness and critical thinking abilities.

He is taking charge of the monitoring of the demands of the consumers and oversees the
competitors’ activities. With this being stated, further enhancements to biofuel must be identified
and data-driven plans must be created.

As he is also equipped with the wits in doing research and developments, Mr. Caparas is
then tasked to also create detailed sales expectations for the biofuel product of the company.

Last but not the least, he is doing his part in promoting the biofuel being manufactured by
the company and in creating and maintaining the relationship with the clients.

Vice President for Finance: Jason Braga, The Head

Being appointed as the Vice President of Finance, Jason Braga serves as the head of the
Fueler Corporation. He was assigned the role of creating environmental impact, sustainability,
and value to the customers of the biofuel product.

Braga is responsible when it comes to analyzing the financial results of the Fueler
Corporation. He is developing, revising, and maintaining the financial policies and accounting
systems of the company. In line with this, he is also responsible for maintaining good
relationships between Fueler Corp. and various financial institutions. He also keeps on directing
and providing strategic guidance and keeps on tracking appropriate reports for the finance
department and outports the company’s continuous aim for growth. The raising of funds and the
supervision of the budget is also a part of his role as the vice president of finance. Following this,
he is also tasked to build external relationships to provide additional capital for the business
venture.

As he is fully equipped with leadership skills, he is responsible for the definition and
clarification of the goals of the Fueler Corporation. The supervision of the monthly board reports
and budget needs is also a part of his work in the company. Having great research and debating
skills, Braga is in charge of forming, supporting, and defending the policies and programs of the
corporation. As he is also endowed with great Mathematical prowess, he is tasked to overall
manage every aspect of the accounting procedures and monitor the company’s financial health.

Vice President for the Human Resources: Justinn Cabatic, The Eyes

The role of a supervisor is being ultimately done by Justinn Cabatic, the Vice President of
Human Resources as well as the eyes of the company. He is the one who composed the rationale,
business proponents, and finance for the business plan. He also edited the paper to further
improve its quality. In comparison to the eyes of the human body, he is carefully observing and
thinking about what could be right and better for the whole Fueler Corporation.

He is an experienced leader, therefore, he was assigned to be in the position of the Vice

President of the Human Resources department. It is his responsibility to provide strategic and
efficient staffing plans such as compensation, programs, benefits and training, and career
development. With his right communication skills, he is tasked to handle the recruitment, hiring,
interviewing, and selecting processes of worthy employees for the Fueler Corporation. Cabatic is
obliged to contribute to the improvement of employees’ relationships with the company. As he is
a creative man with the experience of being a leader, he is also tasked to create programs for the

Page | 26
employees to retain, review, and reward them and their talents which will contribute to the entire
company’s improvement and growth. He is also tasked to recommend measures and programs
that will encourage the employees to do their work progressively. With his decision-making
abilities, he is promoting equality and equity within the workplace of Fueler Corporation.

Being the Vice President of Human Resources, Cabatic is tasked to continuously study
and analyze the laws in the Philippines. He is also assumed to ensure and evaluate various ethics
and policies of the Human Resource Department to have constant monitoring and resolutions to
any complex employee situations that may be encountered within the company. Cabatic is also
good at multitasking, and with this, he is given the role to manage the organizational
development of the entire company. Given his skills in socializing, providing guidance to the
various teams of the company is expected to be fulfilled.

Vice President for Operations: Norman Bico, The Hands

Norman Bico is designated to be the Vice President of Operations as well as the hands of
the Fueler Corporation. He is the one assigned to write the competitive advantages of the biofuel
product of the company.

With his excellence in research and developmental skills, his responsibility is to find
cost-effective suppliers, efficient ways to deliver the product to the clients, and to implement and
execute the operations, strategies as well as processes. With his ability to think critically, he is
assigned to give directions and evaluations in regards to the works of the various departments in
the Fueler Corp. to ensure a smooth work process and progresses for the entire company. He is
also expected to suggest and implement strategies for further improvement of the biofuel product
of the corporation to maintain the lead among all other competing companies.

With his great communication skills, he can coordinate well with the human resource
department since he is in line with the employees’ work and productivity. He is working well
with Cabatic, the Vice President of Human Resources, in overseeing the compliance of the
Fueler Corp. to the appropriate rules, regulations, and policies that must be adhered to. The vice
president of operations is doing great in monitoring and reviewing the performances of his
department and can propose solutions whenever conflicts come along the way. He is also tasked
to improve the ranking of Fueler Corp. by suggesting clever strategies to avoid the losses and
problems to occur in the company.

D. PERSONNEL PLAN

Fueler Corp. has diversified its product range and service niche meaning the business
requires a staff of different expertise and backgrounds to run the business. When determining
how much it cost to start a gas company, the issue of staff and their salaries has to be considered.

Fueler Corp. is owned by the collective group of Rheinhallt Carpo – an Air Traffic
Controller who will also be the President of the biofuel manufacturing company. Amiel Baylon –
an Aircraft Maintenance Technician and a Commercial Pilot who will also be the Vice President
of the biofuel manufacturing company. Aldwin Caparas – an Aircraft Maintenance Technician
who will also be the Vice President of Marketing of the biofuel manufacturing company. Jason
Braga – an Aircraft Maintenance Technician and a Commercial Pilot who will also be the Vice
President of Finance of the biofuel manufacturing company. Justinn Cabatic – an Aircraft

Page | 27
Maintenance Technician and a Commercial Pilot who will also be the Vice President of Human
Resources of the biofuel manufacturing company. Normal Bico – an Air Traffic Controller who
will also be the Vice President of Operations of the biofuel manufacturing company. The
business will employ the following staff to work in various departments:

● Market Research Expert

● Digital Manager
● Content Manager
● Social Media Manager
● Copywriter
● Budget Analyst
● Payroll Administrator
● Bank Analyst
● Auditor
● Accountants
● HR Generalist
● Service Specialist
● Chief Engineer
● Scientists (Biochemist, Microbiologist, and Biophysicists)
● Chemical Technicians
● Engineers ( Civil, Mechanical, and Industrial)
● Factory Workers
● Delivery Personnel

Successful applicants will undergo an intensive training and induction session before the
biofuel manufacturing company starts its production of aviation biofuel.

PERSONNEL 1 2 3
PLAN(YEARLY)

MARKETING
DEPARTMENT

Market Research Expert Php 289,200 Php 319,200 Php 319,200

Digital Manager Php 529,394 Php 559,394 Php 559,394

Content Manager Php 360,000 Php 390,000 Php 390,000

Social Media Manager Php 247,822 Php 277,822 Php 277,822

Copywriter Php 293,734 Php 323,734 Php 323,734

TOTAL Php 1,720,150 Php 1,870,150 Php 1,870,150

FINANCE DEPARTMENT

Budget Analyst Php 247,827 Php 277,827 Php 292,827

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 Payroll Administrator Php 228,766 Php 258,766 Php 298,766

Bank Analyst Php 489,796 Php 519,796 Php 519,796

Auditor Php 233,326 Php 263,326 Php 298,326

Accountants (4) Php 1,174,468 Php 1,204,468 Php 1,304, 268

TOTAL Php 2,374,183 Php 2,524,183 Php 2,713,983

HUMAN RESOURCES
DEPARTMENT

HR Generalist Php 251,106 Php 326,106 Php 426,106

Service Specialist (4) Php 1,241,700 Php 1,316,700 Php 1,416,700

TOTAL Php 1,492,806 Php 1,642,806 Php 1,842,806

OPERATIONS
DEPARTMENT

Chief Engineer Php 440,000 Php 465,000 Php 495,000

Scientists (2) Php 298,288 Php 333,288 Php 393,288

Chemical technicians (2) Php 288,000 Php 313,000 Php 383,000

Engineers (2) Php 521,522 Php 546,522 Php 596,522

Factory Workers(20) Php 2,712,000 Php 2,737,000 Php 3,440,000

Delivery Personnel (10) Php 1,533,000 Php 1,558,000 Php 1,858,000

TOTAL: Php 5,792,810 Php 5,952,810 Php 7,175,810

TOTAL Php 11,379,949 Php 11,989,949 Php 13,602,749

Table 4. Organizational Budget

FINANCIAL PLAN
ASSUMPTIONS

In the next 10 years, Fueler Corp. expects its sales to skyrocket after airline companies
commit to use 100% sustainable aviation fuel. This sudden growth in the company’s sales will

Page | 29
help them be one of the major players in the oil industry. The COVID-19 pandemic could be
over by 2023, which means the flight schools and airline companies will go back to normal
operations. As of now, Fueler Corp. looks forward to gradually increasing its sales by 5.91% in
the next three years as the aviation industry continues to recover from this crisis. With the help of
its hard working employees, Fueler Corp. also expects to overcome all problems and risks that
might threaten the company in the future. The following assumptions are projected to be met:

● The Fueler Corp. will achieve its 16% annual revenue growth rate
● The proponents will obtain 8.4 million from personal and external investments
● A 10% equity interest rate will be given to the investor(s)

PRO FORMA BALANCE SHEET

Pro Forma Balance Sheet- Yearly

Year 1 2 3

Assets

Cash Php 4,228,464.00 Php 4,995,744.00 Php 5,911,152.00

Amortized Php 2,520,000.00 Php 2,786,640.00 Php 3,133,776.00

Development/Expansio
n Costs

Inventory Php 1,680,000.00 Php 3,013,296.00 Php 4,748,880.00

FF & E Php 1,200,000.00 Php 2,266,656.00 Php 3,655,104.00

Accumulated Php 385,728.00 Php 771,408.00 Php 1,157,136.00

Depreciation

Total Assets Php 9,242,784.00 Php 12,290,928.00 Php 16,291,728.00

Liabilities and Equity

Accounts Payable Php 624,240.00 Php 1,282,368.00 Php 1,967,520.00

Long Term Liabilities Php 5,612,208.00 Php 5,188,032.00 Php 4,763,856.00

Other Liabilities Php 0.00 Php 0.00 Php 0.00

Total Liabilities Php 6,236,448.00 Php 6,470,400.00 Php 6,731,328.00

Net Worth Php 3,006,336.00 Php 5,820,528.00 Php 9,560,400.00

Total Liabilities and Php 9,242,784.00 Php 12,290,928.00 Php 16,291,728.00

Equity

Table 5. Balance Sheet

Page | 30
 Figure 8. Balance Sheet

PRO FORMA INCOME STATEMENT

Pro Forma Income Statement- Yearly

Year 1 2 3

Sales Php 31,453,920.00 Php 34,284,768.00 Php 37,470,400.00

Cost of Goods Sold Php 3,145,392.00 Php 3,428,496.00 Php 3,737,040.00

Gross Margin 90.00% 90.00% 90.00%

Operating Income Php 28,308,528.00 Php 30,856,272.00 Php 33,633,360.00

Expenses

Payroll Php 11,664,000.00 Php 12,013,920.00 Php 13,138,176.00

General and Php 691,200.00 Php 718,848.00 Php 747,600.00

Administrative

Marketing Expenses Php 660,528.00 Php 720,000.00 Php 784,800.00

Professional Fees and Php 1,200,000.00 Php 1,236,000.00 Php 1,273,104.00

Licensure

Insurance Costs Php 360,000.00 Php 378,000.00 Php 396,912.00

Travel and Vehicle Costs Php 720,000.00 Php 792,000.00 Php 871,200.00

Rent and Utilities Php 840,000.00 Php 882,000.00 Php 926,112.00

Page | 31
Miscellaneous Costs Php 235,920.00 Php 257,136.00 Php 280,272.00

Payroll Taxes Php 1,749,600.00 Php 1,802,112.00 Php 1,970,736.00

Total Operating Costs Php 18,121,248.00 Php 18,799,968.00 Php 20,388,864.00

EBITDA Php 10,187,280.00 Php 12,056,304.00 Php 13,244,496.00

Federal Income Tax Php 3,361,824.00 Php 3,785,376.00 Php 4,193,232.00

State Income Tax Php 509,376.00 Php 573,552.00 Php 635,328.00

Interest Expense Php 629,136.00 Php 585,456.00 Php 537,696.00

Depreciation Expenses Php 282,864.00 Php 282,864.00 Php 282,864.00

Net Profit Php 5,404,128.00 Php 7,111,920.00 Php 7,878,192.00

Profit Margin 17.18% 20.74% 21.08%

Table 6. Income Statements

Figure 9. Income Statements

Page | 32
CASH FLOW PROJECTIONS

Pro Forma Cash Flow Analysis-Yearly

Year 1 2 3

Cash From Operations Php 7,306,800.0 Php 10,666,416.00 Php 13,884,576.00

Cash From Receivables Php 0.00 Php 0.00 Php 0.00

Operating Cash Php 7,306,800.00 Php 10,666,416.00 Php 13,884,576.00

Inflow

Other Cash Inflows

Equity Investment Php 1,200,00.00 Php 0.00 Php 0.00

Increased Borrowings Php 6,000,000.00 Php 0.00 Php 0.00

Sales of Business Php 0.00 Php 0.00 Php 0.00

Assets

A/P Increases Php 1,819,296.00 Php 2,092,176.00 Php 2,406,000.00

Total Other Cash Php 9,019,296.00 Php 2,092,176.00 Php 2,406,000.00

Inflows

Total Cash Inflow Php 16,326,096.00 Php 12,758,592.00 Php 16,290,624.00

Cash Outflows

Repayment of Principal Php 387,792.00 Php 424,176.00 Php 463,968.00

A/P Decreases Php 1,195,056.00 Php 1,434,048.00 Php 1,720,896.00

A/R Increases Php 0.00 Php 0.00 Php 0.00

Asset Purchases Php 5,400,000.00 Php 2,666,592.00 Php 3,471,168.00

Dividends Php 5,114,784.00 Php 7,466,496.00 Php 9,719,232.00

Total Cash Outflows Php 12,097,632.00 Php 11,991,360.00 Php 15,375,216.00

Net Cash Flow Php 4,228,464.00 Php 767,280.00 Php 915,408.00

Cash Balance Php 4,228,464.00 Php 4,995,744.00 Php 5,911,152.00

Table 11. Cash Flow Projections

Page | 33
 Figure 10. Cash Flow Projections

SOURCES AND USES OF FUNDS

Financing

Equity Contributions

Management Investment Php 4,800,000.00

Total Equity Financing Php 4,800,000.00

External Investment

Investors (e.g. Angel Investors) Php 3,600,000.00

Total Debt Financing Php 3,600,000.00

Total Financing Php 8,400,000.00

Table 13. Sources of Funds

Projected Start-up Costs

Initial Lease Payments and Deposits Php 1,200,000.00

Working Capital Php 3,120,000.00

FF & E Php 1,200,000.00

Leasehold Improvements Php 480,000.00

Security Deposits Php 120,000.00

Page | 34
Opening Supplies Php 480,000.00

Company Vehicle and Lease Deposits Php 960,000.00

Marketing Budget Php 480,000.00

Miscellaneous and Unforeseen Cost Php 360,000.00

Total Start-up Costs Php 8,400,000.00

Table 14. Uses of Funds

BREAK-EVEN ANALYSIS

Monthly Break-Even Analysis

Year 1 2 3

Monthly Revenue Php 1,953,264 Php 2,042,160 Php 2,134,176

Yearly Revenue Php 23,439,312 Php 24,505,920 Php 25,610,160

Table 15. Break Even Analysis

Figure 11. Break Flow Analysis

Page | 35
 ASSESSMENT OF RISK

POTENTIAL RISK - INTERNAL

The possibility of business failure can be derived from the following occurrences: (a)
liquidity and financial risk, (b) failure to hire the best talents, (c) damage to reputation, and (d)
failure to innovate. Each of these risks is explained below.

● Liquidity and financial risk. This may refer to the excessive borrowing of the company
from banks, personalities, or stakeholders given the need for mass production of biofuels
or the demand for effective marketing.

● Failure to hire the best talent. Given a significant number of employees to sustain the
company, the Human Resource department may potentially overlook the employees
during the screening and selection process.

● Damage to reputation. There may be instances where some of the biofuels produced are
of minimum quality. This is primarily due to the inefficient management of the workforce
or malfunctioning/low-caliber equipment and machinery.

● Failure to innovate. Given the first-hand innovation of using agricultural residues, the
company may face the risk of not coming up with more efficient production of biofuels
due to the unavailability of more advanced raw materials such as algae species.

STRATEGIES FOR PREVENTING OR MINIMIZING RISK - INTERNAL

Various risks are present as the business venture continues with its operation. The best
strategy that Fueler Corporation came up with is to appoint a risk management team who will be
tasked to handle risk in internal aspects of the business. The risk management responsibilities
will be duly assigned to the human resource department as this department is truly capable and
efficient in handling conflicts that could arise internally in the business. Of course, internal risks
happen within the workplace which means that the employees are most likely to be involved.
With this being said, the role of the human resource department as a risk management team is to
hire employees who have a good reputation as a person and can be fully trusted in all aspects.
Employment of workers is tasked for the Human Resource department thus making them liable
as well for the risks that could be associated with the hired employees.

RESPONSE TO RISK SHOULD THEY OCCUR - INTERNAL

Given the possible internal risk in the business, the following are the different ways to
deal with the potential risks:

● In liquidity and financial risk, the company will practice proper strategic cash flow
management. Practicing how to manage the cash flow will help us in preventing the

Page | 36
 business from being in a position of having trouble paying the company’s short-term
debt.
● In failure to hire the best talent, the company will improve its personnel management
which can help improve the employees’ morale and performance by compensation and
empowerment. Employees who are motivated and enjoy his/ her work tend to be more
productive and improve their performance.

● In damage to reputation and failure to innovate, the company will be consulting

third-party experts to help in bettering our workforce and determining the quality of the
equipment and machinery. In addition, the company will invest in research and
development to help the company not to stop innovating.

POTENTIAL RISK - EXTERNAL

Category Risk Mitigating Measures

Economical ● Sudden changes in the ● Investing in insurances

market
● A rise in interest rates
● An economic downturn
● Conduct regular
evaluations
● Prepare for a wide range
of situations.
● Develop professional
connections

Natural ● Natural disasters ● Back-up plans

Political ● Changes in government ● Government

policy consultations
● Partnerships or joint
ventures with local
businesses

Competitive ● Losing the trust of the ● Gather information

company’s investors about their goods and
● Stealing ideas from the their future plans from
company publicly accessible
information.
● New technology should
be developed.

Environmental ● Accidents in the ● Safety culture initiatives

workplace ● Safety plans
● Health
● Industrial Hygiene
● Ecological Resources

Table 16. External Risk Factors

Page | 37
 STRATEGIES FOR PREVENTING OR MINIMIZING RISK - EXTERNAL

To manage the company's external risk, Fueler Corporation has developed a sufficient capital
base. A company with sufficient funding can prevent external storms more effectively, external risk
factors include natural disasters that affect normal business activities. In addition, undertakings with
adequate financial resources can take unanticipated risks such as recession or political issues. We will
create our research team to monitor the external risk that might affect the company's operation. The
research team mainly focuses on the strategies to prevent problems early before it affects the business
operations and will provide the best solution for the company based on the business vision, mission and
values.

RESPONSE TO RISK SHOULD THEY OCCUR - EXTERNAL

1. Avoid. This is a retrospect of regular activities that can remove risks.

a. Modify the scope of the job.

b. The objectives of the task should be modified.
c. Clarify the need for ambiguities and misunderstanding to be dispensed.
d. Eliminating specialized hazards gaining capacity.

2. Transfer. This includes transferring the risk effect to a third party. Protection, guarantees or
execution bonds may be used by direct techniques. Aberrant strategies such as contracts with
unit value in place of a single amount, legitimate conclusions, etc.

3. Moderation. Decrease the risk probability or effect. This is generally understood and
accompanies a value which should be adjusted to the advantage of the mitigating activity.

4. Agree. There are risks to all commitments. At a minimum, it runs the risk of failing to
achieve its objective. This should recognize certain dangers. The toleration of risk is like a
certain technique and should, like any other methodology, be archived and imparted.

TIMETABLE/MILESTONE

Milestones Start Date End Date Budget Manager Department

Strategy Review, Formation of 4/10/21 5/4/21 PHP 0.00 Operations

Business Plan, and Year 1 Plan Rheinhallt Carpo Finance
HR
Marketing

Completion of Product or 4/20/21 4/30/21 PHP 10,000.00 Aldwin Marketing

Service Design and Prototypes Caparas

Secure Funding 5/4/21 5/11/21 PHP 0.00 Marc Braga Finance

Secure Government Permits/ 5/12/21 5/19/21 PHP 5,000.00 Norman Bico Operations
Formal Registration of the
Business

Page | 38
Secure Suppliers and Initial 5/4/21 5/11/21 PHP 0.00 Marc Braga Finance
Investors

Reaching Agreement with the 5/12/21 5/13/21 PHP 0.00 Norman Bico Operations
Suppliers and the Distributors

Recruitment and Hiring of 6/1/21 6/4/21 PHP 0.00 Justinn HR

Initial Personnel Cabatic

Employee Training and 6/5/21 6/12/21 PHP 0.00 Justinn HR

Briefing Cabatic

Official Launch of Product 6/13/21 6/20/21 PHP 50,000.00 Aldwin Marketing

Caparas

Launch of Website 6/13/21 6/20/21 PHP 50,000.00 Aldwin Marketing

Caparas

Configure Social Media 6/13/21 6/20/21 PHP 50,000.00 Aldwin Marketing

Accounts Caparas

Launch of Promotional 6/13/21 6/20/21 PHP 100,000.00 Aldwin Marketing

Campaigns Caparas

Actual Production 6/20/21 7/20/21 PHP 0.00 Norman Bico Operations

Initial Orders, Sales, and 6/20/21 6/20/21 PHP 5,000.00 Norman Bico Operations
Deliveries

Goal: 14,000+ local orders 6/20/21 7/20/21 PHP 0.00 Marc Braga Operations

Annual Strategy Review and 12/20/21 12/20/21 PHP 0.00 Operations

Formation of Year 2 Plan Rheinhallt Carpo Finance
HR
Marketing

Secure more Investors and Gain 1/5/22 1/7/22 PHP 0.00 Marc Braga Finance
Shareholders

Goal: 24M PHP in revenue 1/5/22 1/5/23 PHP 300,000.00 Norman Bico Finance
Marc Braga Operations

Relaunch of Promotional 1/5/22 1/12/22 PHP 10,000.00 Aldwin Marketing

Campaigns Caparas

Annual Strategy Review and 12/20/22 12/20/22 PHP 0.00 Operations

Formation of Year 3 Plan Rheinhallt Carpo Finance
HR
Marketing

Expand to more areas in the 1/5/23 1/7/23 PHP 100,000.00 Operations

Philippines Rheinhallt Carpo Finance
HR
Marketing

Relaunch of various 1/5/23 1/12/23 PHP 40,000.00 Aldwin Marketing

Promotions Caparas

Goal: 25M PHP in revenue 1/5/23 1/5/24 PHP 300,000.00 Finance

Rheinhallt Carpo Operations

Page | 39
Annual Strategy Review and 12/20/23 12/20/23 PHP 0.00 Operations
Formation of Year 4 Plan Rheinhallt Carpo Finance
HR
Marketing

Expand to more countries in 1/5/24 1/7/24 PHP 500,000.00 Operations

Asia Rheinhallt Carpo Finance
HR
Marketing

Launch New Machineries for 1/10/24 1/11/24 PHP Norman Bico Operations
Increased Production 1,000,000.00

Goal: 25M to 26M PHP in 1/5/24 1/5/25 PHP 500,000.00 Norman Bico Finance
revenue Marc Braga Operations

Annual Strategy Review and 12/20/24 12/20/24 PHP 0.00 Operations

Formation of Year 5 Plan Rheinhallt Carpo Finance
HR
Marketing

Expand to more countries in 1/5/25 1/8/25 PHP Operations

Asia 1,000,000.00 Rheinhallt Carpo Finance
HR
Marketing

Secure International Investors 1/5/25 1/8/25 PHP 500,000.00 Marc Braga Finance
and Shareholders

Goal: 27M to 28M PHP in 1/5/25 1/5/26 PHP Norman Bico Finance
Revenue 1,000,000.00 Marc Braga Operations

Annual Strategy Review and 12/20/25 12/20/25 PHP 0.00 Operations

Formation of Year 6 Plan Rheinhallt Carpo Finance
HR
Marketing

Table 17. Milestones and Business Projections of Fueler Corporation

Page | 40
 APPENDICES

MARKET RESEARCH DATA

Figure 14. Jet fuel consumption volume in the Philippines (2009-2017)

Table 18. Fuel Price Analysis

Table 19. Impact of Jet Fuel Price Development on 2021’s Industry Total Fuel Bill

Page | 41
DETAILED FINANCIAL PROJECTIONS

Income Statements (First Year)

Months 1 2 3 4 5 6 7

Sales Php Php Php Php Php Php Php

3,234,000.00 3,242,400.00 3,250,800.00 3,259,200.00 2,147,280.00 2,152,800.00 2,158,320.00

Cost of Goods Php 323,424.00 Php 323,240.00 Php 325,104.00 Php 325,920.00 Php 214,752.00 Php 215,280.00 Php 215,856.00
Sold

Gross Margin 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%

Operating Php Php Php Php Php Php Php

Income 2,910,624.00 2,918,160.00 2,925,744.00 2,933,280.00 1,932,576.00 1,937,520.00 1,942,512.00

Expenses

Payroll Php 972,000.00 Php 972,000.00 Php 972,000.00 Php 972,000.00 Php 972,000.00 Php 972,000.00 Php 972,000.00

General and Php 57,600.00 Php 57,600.00 Php 57,600.00 Php 57,600.00 Php 57,600.00 Php 57,600.00 Php 57,600.00
Administrative

Marketing Php 55,056.00 Php 55,056.00 Php 55,056.00 Php 55,056.00 Php 55,056.00 Php 55,056.00 Php 55,056.00
Expenses

Professional Php 99,984.00 Php 99,984.00 Php 99,984.00 Php 99,984.00 Php 99,984.00 Php 99,984.00 Php 99,984.00
Fees and
Licensure

Insurance Costs Php 30,000.00 Php 30,000.00 Php 30,000.00 Php 30,000.00 Php 30,000.00 Php 30,000.00 Php 30,000.00

Travel and Php 60,000.00 Php 60,000.00 Php 60,000.00 Php 60,000.00 Php 60,000.00 Php 60,000.00 Php 60,000.00
Vehicle Costs

Rent and Php 69,984.00 Php 69,984.00 Php 69,984.00 Php 69,984.00 Php 69,984.00 Php 69,984.00 Php 69,984.00
Utilities

Miscellaneous Php 19,680.00 Php 19,680.00 Php 19,680.00 Php 19,680.00 Php 19,680.00 Php 19,680.00 Php 19,680.00
Costs

Payroll Taxes Php 145,824.00 Php 145,824.00 Php 145,824.00 Php 145,824.00 Php 145,824.00 Php 145,824.00 Php 145,824.00

Total Php Php Php Php Php Php Php

Operating 1,510,080.00 1,510,080.00 1,510,080.00 1,510,080.00 1,510,080.00 1,510,080.00 1,510,080.00
Costs

EBITDA Php Php Php Php Php 422,448.00 Php 427,440.00 Php 432,384.00
1,400,496.00 1,408,080.00 1,415,616.00 1,423,200.00

Federal Income Php 345,648.00 Php 346,560.00 Php 347,424.00 Php 348,336.00 Php 229,488.00 Php 230,112.00 Php 230,688.00
Tax

State Income Php 52,368.00 Php 52,512.00 Php 52,656.00 Php 52,800.00 Php 34,752.00 Php 34,848.00 Php 34,944.00
Tax

Interest Expense Php 54,000.00 Php 53,712.00 Php 53,424.00 Php 53,136.00 Php 52,848.00 Php 52,560.00 Php Php
52,272.00

Depreciation Php 23,568.00 Php 23,568.00 Php 23,568.00 Php 23,568.00 Php 23,568.00 Php 23,568.00 Php 23,568.00
Expense

Net Profit Php 924,912.00 Php 931,728.00 Php 938,496.00 Php 945,312.00 Php 81,744.00 Php 86,304.00 Php 90,864.00

Table 20. Income Statements (First Year)

Page | 42
 Income Statements (First Year Continuation)

Month 8 9 10 11 12 1

Sales Php 2,163,840.00 Php 2,169,360.00 Php 3,309,600.00 Php 2,180,400.00 Php 2,185,920.00 Php 31,933,920.00

Cost of Goods Sold Php 216,384.00 Php 216,960.00 Php 330,960.00 Php 218,064.00 Php 218,592.00 Php 3,145,392.00

Gross Margin 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%

Operating Income Php 1,947,456.00 Php 1,952,448.00 Php 2,978,640.00 Php 1,962,384.00 Php 1,967,328.00 Php 28,308,528.00

Expenses

Payroll Php 972,000.00 Php 972,000.00 Php 972,000.00 Php 972,000.00 Php 972,000.00 Php 11,664,000.00

General and Php 57,600.00 Php 57,600.00 Php 57,600.00 Php 57,600.00 Php 57,600.00 Php 691,200.00
Administrative

Marketing Php 55,056.00 Php 55,056.00 Php 55,056.00 Php 55,056.00 Php 55,056.00 Php 660,528.00
Expenses

Professional Fees Php 99,984.00 Php 99,984.00 Php 99,984.00 Php 99,984.00 Php 99,984.00 Php 1,200,000.00
and Licensure

Insurance Costs Php 30,000.00 Php 30,000.00 Php 30,000.00 Php 30,000.00 Php 30,000.00 Php 360,000.00

Travel and Vehicle Php 60,000.00 Php 60,000.00 Php 60,000.00 Php 60,000.00 Php 60,000.00 Php 720,000
Costs

Rent and Utilities Php 69,984.00 Php 69,984.00 Php 69,984.00 Php 69,984.00 Php 69,984.00 Php 840,000.00

Miscellaneous Php 19,680.00 Php 19,680.00 Php 19,680.00 Php 19,680.00 Php 19,680.00 Php 235,920.00
Costs

Payroll Taxes Php 145,824.00 Php 145,824.00 Php 145,824.00 Php 145,824.00 Php 145,824.00 Php 1,749,600.00

Total Operating Php 1,510,080.00 Php 1,510,080.00 Php 1,510,080.00 Php 1,510,080.00 Php 1,510,080.00 Php 18,121,248.00
Costs

EBITDA Php 437,376.00 Php 442,320.00 Php 1,468,560.00 Php 452,256.00 Php 457,248.00 Php 10,187,280.00

Federal Income Php 231,264.00 Php 231,840.00 Php 353,712.00 Php 233,040.00 Php 233,616.00 Php 3,361,824.00
Tax

State Income Tax Php 35,040.00 Php 35,136.00 Php 53,616.00 Php 35,328.00 Php 35,376.00 Php 509,376.00

Interest Expense Php 51,984.00 Php 51,696.00 Php 51,408.00 Php 51,120.00 Php 50,832.00 Php 629,136.00

Depreciation Php 23,568.00 Php 23,568.00 Php 23,568.00 Php 23,568.00 Php 23,568.00 Php 282,864.00
Expense

Net Profit Php 95,472.00 Php 100,032.00 Php 986,208.00 Php 109,200.00 Php 113,808.00 Php 5,404,128.00

Table 21. Income Statements (First Year Continuation)

Income Statements (Second Year)

Quarter Q1 Q2 Q3 Q4 2

Sales Php 6,856,944.00 Php 8,571,216.00 Php 9,256,896.00 Php 9,599,760.00 Php 34,284,768.00

Costs of Goods Sold Php 685,680.00 Php 857,136.00 Php 925,680.00 Php 959,952.00 Php 3,428,496.00

Page | 43
Gross Margin 90.0% 90.0% 90.0% 90.0% 90.0%

Operating Income Php 6,171,264.00 Php 7,714,080.00 Php 8,331,216.00 Php 8,639,760.00 Php 30,856,272.00

Expenses

Payroll Php 2,402,784.00 Php 3,003,504.00 Php 3,243,744.00 Php 3,363,888.00 Php 12,013,920.00

General and Php 143,760.00 Php 179,712.00 Php 194,112.00 Php 201,264.00 Php 718,848.00
Administrative

Marketing Expenses Php 144,000.00 Php 180,000.00 Php 194,400.00 Php 201,600.00 Php 720,000.00

Professional Fees and Php 247,200.00 Php 309,024.00 Php 333,744.00 Php 346,080.00 Php 1,236,000.00
Licensure

Insurance Costs Php 75,600.00 Php 94,512.00 Php 102,048.00 Php 105,840.00 Php 378,000.00

Travel and Vehicle Php 158,400.00 Php 198,000.00 Php 213,840.00 Php 221,760.00 Php 792,000.00
Costs

Rent and Utilities Php 176,400.00 Php 220,512.00 Php 238,128.00 Php 246,960.00 Php 882,000.00

Miscellaneous Costs Php 51,408.00 Php 64,272.00 Php 69,408.00 Php 72,000.00 Php 257,136.00

Payroll Taxes Php 360,432.00 Php 450,528.00 Php 486,576.00 Php 504,576.00 Php 1,802,112.00

Total Operating Costs Php 3,759,984.00 Php 4,700,016.00 Php 5,076,000.00 Php 5,264,016.00 Php 18,799,968.00

EBITDA Php 2,411,280.00 Php 3,014,064.00 Php 3,255,216.00 Php 3,375,792.00 Php 12,056,304.00

Federal Income Tax Php 757,056.00 Php 946,368.00 Php 1,022,064.00 Php 1,059,888.00 Php 3,785,376.00

State Income Tax Php 114,720.00 Php 143,376.00 Php 154,848.00 Php 160,608.00 Php 573,552.00

Interest Expense Php 150,624.00 Php 147,840.00 Php 144,960.00 Php Php 142,032.00 Php 585,456.00

Depreciation Expense Php 70,704.00 Php 70,704.00 Php 70,704.00 Php 70,704.00 Php 282,864.00

Net Profit Php 1,318,176.00 Php 1,705,824.00 Php 1,862,592.00 Php 1,942,512.00 Php 6,829,056.00

Table 22. Income Statements (Second Year)

Income Statements (Third Year)

Quarter Q1 Q2 Q3 Q4 3

Sales Php 7,474,080.00 Php 9,342,624.00 Php 10,090,032.00 Php 10,463.712.00 Php 37,370,400.00

Cost of Goods Sold Php 747,408.00 Php 934,272.00 Php 1,009,008.00 Php 1,046,352.00 Php 3,737,040.00

Gross Margin 0.0% 0.0% 0.0% 0.0% 0.0%

Operating Income Php 6,726,672.00 Php 8,408,352.00 Php 9,081,024.00 Php 9,417,360.00 Php 33,633,360.00

Expenses

Payroll Php 2,627,616.00 Php 3,284,544.00 Php 3,547,296.00 Php 3,678,672.00 Php 13,138,176.00

General and Php 149,520.00 Php 186,912.00 Php 201,840.00 Php 209,328.00 Php 747,600.00

Page | 44
Administrative

Marketing Expenses Php 156,960.00 Php 196,176.00 Php 211,872.00 Php 219,744.00 Php 784,800.00

Professional Fees and Php 254,640.00 Php 318,288.00 Php 343,728.00 Php 356,448.00 Php 1,273,104.00
Licensure

Insurance Costs Php 79,392.00 Php 99,216.00 Php 107,184.00 Php 111,120.00 Php 396,912.00

Travel and Vehicle Php 174,240.00 Php 217,824.00 Php 235,248.00 Php 243,936.00 Php 871,200.00
Costs

Rent and Utilities Php 185,232.00 Php 231,504.00 Php 250,032.00 Php 259,296.00 Php 926,112.00

Miscellaneous Costs Php 56,064.00 Php70,080.00 Php 75,696.00 Php 78,480.00 Php 280,272.00

Payroll Taxes Php 394,128.00 Php 492,672.00 Php 532,080.00 Php 551,808.00 Php 1,970,736.00

Total Operating Costs Php 4,077,792.00 Php 5,097,216.00 Php 5,504,976.00 Php 5,708,880.00 Php 20,388,864.00

EBITDA Php 2,648,880.00 Php 3,311,136.00 Php 3,576,000.00 Php 3,708,480.00 Php 13,244,496.00

Federal Income Tax Php 838,656.00 Php 1,048,320.00 Php 1,132,176.00 Php 1,174,128.00 Php 4,193,232.00

State Income Tax Php 127,056.00 Php 158,832.00 Php 171,552.00 Php 177,888.00 Php 635,328.00

Interest Expense Php 139,056.00 Php 136,032.00 Php 132,912.00 Php 129,696.00 Php 537,696.00

Depreciation Expense Php 70,704.00 Php 70,704.00 Php 70,704.00 Php 70,704.00 Php 282,864.00

Net Profit Php 1,473,408.00 Php 1,897,248.00 Php 2,068,704.00 Php 2,156,016.00 Php 7,595,376.00

Table 23. Income Statements (Third Year)

EXPANDED CASH FLOW ANALYSIS

Cash Flow Analysis (First Year)

Month 1 2 3 4 5 6 7 8

Cash from Php Php Php Php Php Php Php Php
Operations 948,480.00 955,296.00 962,064.00 968,880.00 105,312.00 109,872.00 114,480.00 119,040.00

Cash from Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00
Receivables

Operating Php Php Php Php Php Php Php Php

Cash Inflow 948,480.00 955,296.00 962,064.00 968,880.00 105,312.00 109,872.00 114,480.00 119,040.00

Other Cash Inflows

Equity Php Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00
Investment 1,200,000.00

Increased Php Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00
Borrowings 7,200,000.00

Sales of Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00
Business
Assets

A/P Increases Php Php Php Php Php Php Php Php
151,632.00 151,632.00 151,632.00 151,632.00 151,632.00 151,632.00 151,632.00 151,632.00

Total Other Php Php Php Php Php Php Php Php
Cash Inflows 8,551,632.00 151,632.00 151,632.00 151,632.00 151,632.00 151,632.00 151,632.00 151,632.00

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Total Cash Php Php Php Php Php Php Php Php
Inflow 9,500,064.00 1,106,880.00 1,113,696.00 1,120,512.00 256,896.00 261,504.00 266,064.00 270,624.00

Cash Outflows

Repayment of Php 37,200.00 Php 37,488.00 Php 37,776.00 Php 38,064.00 Php 38,352.00 Php 38,640.00 Php 38,928.00 Php 39,216.00
Principal

A/P Decreases Php 99,600.00 Php 99,600.00 Php 99,600.00 Php 99,600.00 Php 99,600.00 Php 99,600.00 Php 99,600.00 Php 99,600.00

A/R Increases Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Asset Php Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00
Purchases 3,960,000.00

Dividends Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Total Cash Php Php Php Php Php Php Php Php
Outflows 4,096,800.00 137,088.00 137,376.00 137,616.00 137,904.00 138,192.00 138,480.00 138,816.00

Net Cash Php Php Php Php Php Php Php Php
Flow 5,403,264.00 969,792.00 976,320.00 982,848.00 118,992.00 123,264.00 127,584.00 131,856.00

Cash Balance Php Php Php Php Php Php Php Php
5,403,264.00 6,373,104.00 7,349,424.00 8,332,320.00 8,451,312.00 8,574,576.00 8,702,160.00 8,833,968.00

Table 24. Cash Flow Analysis (Third Year)

Cash Flow Analysis (First Year Continuation)

Month 9 10 11 12 1

Cash from Operations Php 123,600.00 Php 1,009,776.00 Php 132,816.00 Php 137,376.00 Php 5,686,992.00

Cash from Receivables Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Operating Cash Php 123,600.00 Php 1,009,776.00 Php 132,816.00 Php 137,376.00 Php 5,686,992.00
Inflow

Other Cash Inflows

Equity Investment Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 1,200,000.00

Increased Borrowings Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 7,200,000.00

Sales of Business Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00
Assets

A/P Increases Php 151,632.00 Php 151,632.00 Php 151,632.00 Php 151,632.00 Php 1,8019,296.00

Total Other Cash Php 151,632.00 Php 151,632.00 Php 151,632.00 Php 151,632.00 Php 10,219,296.00
Inflows

Total Cash Inflow Php 275,232.00 Php 1,161,408.00 Php 284,400.00 Php 289,008.00 Php 15,906,288.00

Cash Outflows

Repayment of Principal Php 39,504.00 Php 39,792.00 Php 40,080.00 Php 40,416.00 Php 465,360.00

A/P Decreases Php 99,600.00 Php 99,600.00 Php 99,600.00 Php 99,600.00 Php 1,195,056.00

A/R Increases Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Asset Purchases Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 3,960,000.00

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Dividends Php 0.00 Php 0.00 Php 0.00 Php 4,549,584.00 Php 4,549,584.00

Total Cash Outflows Php 139,104.00 Php 139,392.00 Php 139,680.00 Php 4,689,552.00 Php 10,170,048.00

Net Cash Flow Php 136,128.00 Php 1,022,016.00 Php 144,720.00 Php -4,400,592.00 Php 5,736,288.00

Cash Balance Php 8,970,144.00 Php 9,992,160.00 Php 10,136,880.00 Php 5,736,288.00 Php 5,736,288.00

Table 24. Cash Flow Analysis (First Year Continuation)

Cash Flow Analysis (Second Year)

Quarter Q1 Q2 Q3 Q4 2

Cash from Operations Php 1,478,976.00 Php 1,848,720.00 Php 1,996,608.00 Php 2,070,528.00 Php 7,394,784.00

Cash from Receivables Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Operating Cash Php 1,478,976.00 Php 1,848,720.00 Php 1,996,608.00 Php 2,070,528.00 Php 7,394,784.00
Inflow

Other Cash Inflows

Equity Investment Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Increased Borrowings Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Sales of Business Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00
Assets

A/P Increases Php 418,416.00 Php 523,056.00 Php 564,912.00 Php 585,792.00 Php 2,092,176.00

Total Other Cash Php 418,416.00 Php 523,056.00 Php 564,912.00 Php 585,792.00 Php 2,092,176.00
Inflows

Total Cash Inflow Php 1,897,392.00 Php 2,371,728.00 Php 2,561,472.00 Php 2,656,368.00 Php 9,486,960.00

Cash Outflows

Repayment of Principal Php 123,024.00 Php 125,808.00 Php 128,640.00 Php 131,568.00 Php 509,040.00

A/P Decreases Php 286,800.00 Php 358,512.00 Php 387,216.00 Php 401,520.00 Php 1,434,048.00

A/R Increases Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Asset Purchases Php 147,888.00 Php 184,848.00 Php 199,680.00 Php 207,072.00 Php 739,488.00

Dividends Php 1,183,152.00 Php 1,478,976.00 Php 1,597,296.00 Php 1,656,432.00 Php 5,915,856.00

Total Cash Outflows Php 1,740,864.00 Php 2,148,144.00 Php 2,312,784.00 Php 2,396,592.00 Php 8,598,384.00

Net Cash Flow Php 156,528.00 Php 223,584.00 Php 248,688.00 Php 259,776.00 Php 888,576.00

Cash Balance Php 5,892,768.00 Php 6,116,400.00 Php 6,365,088.00 Php 6,624,864.00 Php 6,624,864.00

Table 25. Cash Flow Analysis (Second Year)

Cash Flow Analysis (Third Year)

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 3

Quarter Q1 Q2 Q3 Q4 3

Cash from Operations Php 1,632,192.00 Php 2,040,288.00 Php 2,203,488.00 Php 2,285,088.00 Php 8,161,056.00

Cash from Receivables Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Operating Cash Php 1,632,192.00 Php 2,040,288.00 Php 2,203,488.00 Php 2,285,088.00 Php 8,161,056.00
Inflow

Other Cash Inflows

Equity Investment Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Increased Borrowings Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Sales of Business Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00
Assets

A/P Increases Php 481,200.00 Php 601,488.00 Php 649,632.00 Php 673,680.00 Php 2,406,000.00

Total Other Cash Php 481,200.00 Php 601,488.00 Php 649,632.00 Php 673,680.00 Php 2,406,000.00
Inflows

Total Cash Inflow Php 2,113,440.00 Php 2,641,776.00 Php 2,853,120.00 Php 2,958,768.00 Php 10,567,104.00

Cash Outflows

Repayment of Principal Php 134,544.00 Php 137,616.00 Php 140,736.00 Php 143,904.00 Php 556,752.00

A/P Decreases Php 344,160.00 Php 430,224.00 Php 464,640.00 Php 481,824.00 Php 1,720,896.00

A/R Increases Php 0.00 Php 0.00 Php 0.00 Php 0.00 Php 0.00

Asset Purchases Php 163,200.00 Php 204,048.00 Php 220,368.00 Php 228,528.00 Php 816,096.00

Dividends Php 1,305,792.00 Php 1,632,192.00 Php 1,762,800.00 Php 1,828,080.00 Php 6,528,864.00

Total Cash Outflows Php 1,947,696.00 Php 2,404,080.00 Php 2,588,496.00 Php 2,682,336.00 Php 9,622,608.00

Net Cash Flow Php 165,696.00 Php 237,696.00 Php 264,624.00 Php 276,432.00 Php 944,496.00

Cash Balance Php 6,790,560.00 Php 7,028,256.00 Php 7,292,880.00 Php 7,569,360.00 Php 7,569,360.00

Table 26. Cash Flow Analysis (Third Year)

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CURRICULUM VITAE OF THE MANAGEMENT TEAM

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PRICE LIST FROM THE SUPPLIERS

Company Product Price

Dalig Rice Mill Darak (Rice bran) Php 10/kilo

Sweet Crystals Integrated Sugar Mill Sugar Cane Php 2,300/ton

Corp

PROFILE OF THE COMPETITORS

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PROBLEM

Projections have shown that the global demands for flight and jet fuels will recover in the
next couple of years. The economic health of the aviation industry is greatly implicated due to
the limitations imposed by the COVID-19 pandemic. Given a set of health precautionary
measures implemented by the government and various authorities worldwide, domestic and
international air travel is at its ultimate minimum. Numerous flights have been banned equating
to a massive loss in total airline revenue. The depreciating income of various airlines exposes the
need for a less expensive source of flight and jet fuels.

Given a significant amount of carbon in the airspace, the need for ecologically sound
resources also prevails. According to the Environmental and Energy Study Institute (2019), the
total carbon emitted by the industry of aviation has rapidly increased in recent years. There was a
21% surge in carbon emission starting from 2013 to 2017 tallying 710 million tons and 860
million tons respectively. In 2018, 2.4 percent of the world’s carbon dioxide emission came from
the field of air transportation. While the current rate of carbon emissions dropped significantly
due to air restrictions and strict implementation of rules, the possibility of climate change can
still be foreseen. Such a significant carbon deficit is sought to be maintained through the aid of a
sustainable source of aviation fuel.

Conclusively, problems involving the huge demand for economic and environmental
aviation fuel should be complemented.

SOLUTION

Given the need for sustainable resources, the proponents seek to identify the possibility of
feedstock as a potential source of economic and environmental aviation fuel. Feedstocks are
biological and renewable raw materials that are used to produce goods and other products
through industrial processes. These can be easily converted into the so-called biofuels which are
energy-producing fuels generated through processing waste from both human and animal
activities.

As flight operations gradually recover, the demand for sustainable biofuels would
definitely reach its peak. With this foreseen instance, numerous airlines will consider buying
inexpensive sources of fuels from a limited number of manufacturers. The Philippines, as an
agricultural country, is rich in different varieties of feedstocks ranging from plant oils to
agricultural residues. The availability of such resources becomes the primary motivation for the
development of aviation biofuels.

There are in-demand manufacturers of biofuel around the globe, especially in first-world
countries. In the Philippines, biofuels are primarily generated from sugarcanes in small batches
which increases the total cost of fuel production. Considering all these, the proponents aim to
utilize all types of agricultural residues as the main material to maximize the production of
sustainable fuel. An aviation biofuel manufacturing company should be established in order to
achieve such a goal.

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