Manufacture of Sodium Tripolyphosphate FULL

MAPUA INSTITUTE OF TECHNOLOGY
School of Chemical Engineering and Chemistry
Feasibility Study
On
Manufacture of
Sodium Tripolyphosphate
In Partial Fulfillment on CHFK 583
Presented to:
Engr. Winston B. Flora
Presented By:
Arenas, Reagan P.
Cauilan, Jerick Vincent A.
Cruz, Ruben Allan
Membrebe, Zandrick Ian O.
1
ABSTRACT
This feasibility study is about the production of sodium tripolyposphate

from phosphoric acid and sodium carbonate. The advantage of manufacturing
STPP is that the capital investment needed to put up a STPP plant is low.
STPP is a white substance with highly hygroscopic power and has a formula of Na5P3O10.
It has an outstanding property as a builder in laundry products.
This study includes an analysis of the marketing activities of STPP

together with the historical and projected demands and cost of the raw materials
and product itself.
Our product will be sold in 2006 at 33.17 pesos. Our market share is
12.50% for the year 2006. The projected price of STPP for the year 2015 is
57.09 pesos.
This study includes a technical analysis of our product. Basically we have
five (5) operations: pulverizing, mixing, drying, filtration, and separation.
Our company will be producing 815.36 kg STPP every hour from pure
587.74 kg Na2CO3 and pure 652.04 kg H3PO4 feed. We will start operating in
January 2006.
This also includes a financial analysis wherein the project cost for putting
up an STPP plant is 163,282,454 pesos. We will have the total manpower
complements of the company of 57 with a fringe benefit of 30% of their total
salary. We have a payback period of 3.67 years and return of investment is 31%.
2
ENDORSEMENT
In partial fulfillment of the requirements for the degree in Bachelor of

Science in Chemical Engineering, this study/thesis entitled “Manufacture
of Sodium Tripolyposphate,” as prepared by:
1. Arenas, Reagan 1998112124
2. Cauilan, Jerick Vincent A. 1997118116
3. Cruz, Ruben Allan 1998108642
4. Membrebe, Zandrick 1998114015

Is hereby recommended for oral examination.
ENGR. WINSTON B. FLORA ENGR. GERALDO C. TALISIC

Course Adviser Faculty Adviser
ACCEPTANCE
The attached study was successfully presented before a panel on June 20,2003. It is hereby
accepted as a partial requirement leading to the degree in Bachelor of Science in Chemical
Engineering.
ENGR. WINSTON B. FLORA ENGR. NILDA S. ELIQUEN

Course Adviser Panel
ENGR. FE G. DAMPIL ENGR. ISABELITA D. QUINTERO

Panel Panel
ENGR. NARCISO M. MACARANAS ENGR. ARTURO L. TAPAS

Panel Panel
3
APPROVAL
On the recommendation of the panel, the School of Chemical Engineering

and Chemistry of the Mapua Institute of Technology accepts this study as
a requirement leading to a degree in Bachelor of Science in Chemical
Engineering.
ENGR. LUZ LOZANO

Dean
4
ACKNOWLEDGEMENT
We would like to take this opportunity to express our sincere gratitude to

the following persons who helped, supported and shared their time to come up
with this feasibility study.
Engr. Winston B. Flora, our course adviser in Plant Design 1 and 2,

for giving us his time and effort in making this feasibility study viable.
Engr. Geraldo C. Talisic for being our faculty adviser.
To our beloved parents, for serving as our inspiration in pursuing with the
study, and for their financial support.
We would like to extend our appreciation to various government agencies

for endowing us with necessary information:
Department of Science and Technology

Department of Trade and Industry
National Statistics Office
Bureau of Imports Services
Adamson University Library
University of Santo Thomas Library
Mapua Institute of Technology Library
And most of all, Our Lord Almighty for providing us the strength,
guidance, determination, knowledge and perseverance, without his presence we
would not be able to accomplish this study.
5
TABLE OF CONTENTS
Page
Endorsement
i
Abstract
ii
Acknowledgement
iii
Executive Summary
1
I. Company Profile
A. Company Name 35
B. Company Logo 35
C. Mission and Vision 36
II. Product Description

A. Product Description 37
B. History of the Product 38
C. Product Properties 39
D. Product Standard and Specifications 40
E. Product Uses 41
F. Safety Profile 41
III. Market Analysis

A. Introduction 42
B. Analysis of Supply and Demand 43
C. Market Segmentation 54
D. Target Local Market 55
E. Market Share 56
F. Current Major Exporter of STPP to the Philippines 57
G. SWOT Analysis 57
H. Situational Analysis 58
I. Market Process 58
J. Market Plan and Activities 59
K. Statement and Strategies 59
L. Price Study 61
M. Marketing Channel and Distribution 64
6
IV. Technical Study
1. Introduction
A. Design Equipment
65
B. Plant Location 68
2. Process Design
A. Process Description
72
B. Process Flow Diagram
74
C. Material Balance 75
D. Energy Balance
81
3. Description of Raw Materials
A. Phosphoric Acid 82
B. Sodium Carbonate 84
4. Safety, Health, and Environmental Consideration 86
V. Financial Study
A. GANTT Chart 87
B. Manpower 88
C. Projected Salaries and Wages 89
D. Projected Fringe And Benefits 89
E. Breakdown of Pre0Operating Expenses 90
F. Quantitative Inventory of Raw Materials 91
G. Quantitative Projection of Production, Finished Goods 93
And Goods Sold
H. Schedule of Raw Materials 94
I. Quantitative Projection of Energy Required 96
J. Organizational and Pre-Operating Expenses 97
K. Machinery and Equipment 98
L. Office Equipment and Furniture 100
M. Office Supplies Cost 101
N. Electricity Consumption for 2015 102
O. Fuel and Water Consumption 104
P. Utilities 105
Q. Fixed Capital Investment 106
R. Total Project Cost 107
S. Investment Source 108
T. Schedule of Amortization 109
U. Cost of Sales 110
V. Operating Expenses 112
W. Income Statement 114
7
X. Projected Cash Flow Statement 115
Y. Balance Sheet 117
Z. Financial Ratio 119
AA. Payback Period 120
VI. Socio-Economic 121
8
EXECUTIVE SUMMARY
Sodium Tripolyposphate is produced from phosphoric acid and
sodium carbonate.
Sodium Tripolyphosphate (STPP) is a white substance with
highly hygroscopic power and has a formula of Na5P3O10. It has an
outstanding property as a builder in laundry products. Its prime role is
that of softening agent for hard water, acting by the sequestration of
both calcium and magnesium ion to form soluble compounds. In
addition, STPP fulfills a number of other important functions. It provides
the necessary alkaline buffer capacity for the neutralization and
saponification of acid soils. It assists in the breakdown of soil particles
to much smaller sizes that they easily dispersed in the wash and are
readily deposited on the fabric. Technically it is easy to use; it is
compatible with other detergent ingredients, and helps in the production
of crisp free-flowing powders.
STPP has a very low toxicity and it plays an important role during the
washing process, in which its function is:
-To eliminate the alkaline earth ions from water and precipitation of
surfactants.
-To loosen chemical-physical bonds within the dirt and between dirt and
substrate.
-To disperse soil in detergents solution.
-To buffer the ph of the washing machine solution
9
Market Study
Sodium Tripolyphosphate production is 815.36 kg/day for the year 2006-2015. We will
sell it at a price of 33.17 pesos per kg in 2006 and project to sell at a price of 57.09 pesos in
2015.
Table 1: Historical Importation Price of STPP
Year Price (Php)

1990 18.54
1991 19.08
1992 21.27
1993 20.65
1994 22.76
1995 22.02
1996 21.94
1997 17.57
1998 23.48
1999 21.4
2000 24.49
2001 29.17
Figure 1. Historical Importation Price of STPP
Price of STPP
35
30
25
Price
20
15
10
5
0
1985 1990 1995 2000 2005
Year
Source: National Statistics Office
10
TABLE 2. Projected Importation Price of STPP
Year Projected Price

(PhP)
2006 33.17
2007 35.23
2008 37.44
2009 39.80
2010 42.31
2011 44.97
2012 47.78
2013 50.73
2014 53.84
2015 57.09
The method used in the projection of price of Na2P3O10 is Statistical

Parabolic because as you can see on the graph of the historical price the
curve is fluctuating, and it has the least deviation among the four (4)
methods.
FIGURE 2. Projected Importation Price of STPP
Projected Price of STPP (Pesos)
60.00
50.00
40.00
Price
30.00
20.00
10.00
0.00
2004 2006 2008 2010 2012 2014 2016
Year
11
Figure 3. Historical Price of H3PO4
Year Price (Php)

1990 6.2
1991 14.43
1992 10.1
1993 13.9
1994 11.64
1995 12.02
1996 10.04
1997 11.5
1998 16.52
1999 14.68
2000 15.15
2001 15.71
Historical Price of H3PO4
18
16
14
Price (PhP)
12
10
8
6
4
2
0
1988 1990 1992 1994 1996 1998 2000 2002
Year

Table 4. Projected Price of H3PO4
12
Year Price (Php)
2002 13.64
2003 14.23
2004 15
2005 15.96
2006 17.11
2007 18.44
2008 19.96
2009 21.67
2010 23.57
2011 25.65
2012 27.92
2013 30.38
2014 32.2
2015 34.13
The method used in the projection of price of H3PO4 is Statistical

methods.
Figure 4. Projected Price of H3PO4
Projected Price of H3PO4
40
35
30
Price (Php)
25
20
15
10
5
0
2000 2002 2004 2006 2008 2010 2012 2014 2016
Year
13
Table 5. Historical Price of Na2CO3
Year Price (Php)

1990 6.81
1991 7.2
1992 6.9
1993 5.77
1994 4.16
1995 3.39
1996 4.03
1997 4.46
1998 5.75
1999 5.67
2000 5.16
2001 5.83
Figure 5. Historical Price of Na2CO3
Historical Price of Na2Co3
8
7
6
Price (PhP)
5
4
3
2
1
0
1988 1990 1992 1994 1996 1998 2000 2002
Year

Table 6. Projected Price of Na2CO3
14
Projected Price
Year (Php)
2002 7.46
2003 7.96
2004 8.45
2005 9.06
2006 9.67
2007 10.32
2008 11.01
2009 11.74
2010 12.49
2011 13.3
2012 14.14
2013 15.02
2014 15.93
2015 16.88
The method used in the projection of price of Na2CO3 is Statistical

methods.
Figure 6. Projected Price of Na2CO3
Projected Price of Na2CO3
18
16
14
Price (Php)
12
10
8
6
4
2
0
2000 2002 2004 2006 2008 2010 2012 2014 2016
Year
15

(PhP)
2002 25.76
2003 26.34
2004 26.91
2005 27.48
2006 28.06
2007 28.63
2008 29.21
2009 29.78
2010 30.35
2011 30.93
2012 31.50
2013 32.08
The method used in the projection of price of H3PO4 is Statistical Straight

Line, because as you can see on the graph of the historical price the curve is
fluctuating, and it has the least deviation among the four (4) methods.
Projected Price of STPP

35
30
25
Price
20
15
10
5
0
2000 2005 2010 2015
Year
16
Table 8. Historical Local Productions
Historical Local Production

Year Quantity (kg)
1992 9204611
1993 7119816
1994 8014215
1995 8254891
1996 10843201
1997 11000005
1998 13483886
1999 12020113
2000 14892616
2001 15028859
Chem-Phil is the only company that produces STPP locally. They supply
75% share in the market, 12.50% are being imported and our company will
cover the remaining 12.50%.
FIGURE 8. Historical Local Productions
16000000
14000000
12000000
Quantity
10000000
8000000
6000000
4000000
2000000
0
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Year
17
TABLE 9. Historical Demand of Sodium Tripolyphosphate
Historical Demand of Sodium Tripolyphosphate

Year Demand (kg)
1992 10303636
1993 12374707
1994 13034820
1995 27195464
1996 24907468
1997 21167203
1998 19332692
1999 19213637
2000 25253088
2001 26496750
FIGURE 9. Historical Demand of Sodium Tripolyphosphate
Historical Total Demand of STPP
30000000
25000000
20000000
Quantity
15000000
10000000
5000000
0
1992 1994 1996 1998 2000
Year
Source:10.
Table National Statistics Office
Projected Total Demand of STPP
18
Year Demand (kg)
2006 56888241.76
2007 60691126.67
2008 64983588.92
2009 69276051.16
2010 73568513.41
2011 78305150.89
2012 82153437.9
2013 86445900.14
2014 90738362.39
2015 95030824.63
The method used in the projection of the total demand of STPP is

Statistical straight Line because as you can see on the graph of the
historical price the curve is fluctuating, and it has the least deviation among
the four (4) methods.
Figure 10. Projected Total Demand of STPP
Projected Total Demand
100000000
90000000
80000000
70000000
Price (Php)
60000000
50000000
40000000
30000000
20000000
10000000
0
2004 2006 2008 2010 2012 2014 2016
Year
FIGURE 11. Market Share
19
Market Share
Chem-Phil (75%)
STPPMI (12.50%)
12.50%
Importation (12.50%)
12.50%
75%
Technical Study
20
In the manufacturing of STPP from phosphoric acid and sodium
carbonate, the process involves are: mixing, drying, pulverizing, filtration and
separation.
The company is producing 815.36 kg of STPP per hour for the year 2006.
The start of operation is on January 2006.
21
FIGURE 12. Process Flow Diagram (Typical Hour Operation)
532.29 kg NaH2PO4
1259.74 kg Na2PO4
787.34 kg H2Ototal
1304.07 kg H3PO4 1.76 kg impurities
1175.47 kg Na2CO3
R
E 6.10 kg
FILTER
BUCKET A impurities
C PRESS
ELEVATOR T 531.76 kg NaH2PO4
BUNKER O 1258.48 kg Na2PO4
R
532.29 kg NaH2PO4 786.55 kg H2Ototal
1259.74 kg Na2PO4
587.74 kg H2O 1175.47 kg Na2CO3
1.76 kg impurities S 787.34 kg H2Ototal 531.76 kg NaH2PO4
E wt. CO2 =487.93 kg 1258.48 kg Na2PO4
Pwt. impurity=1.76kg ORTHO 786.55 kg H2O total
R TANK
MIXER A 487.93 kg CO2
1764.97 kg slurry T 128.84 kg hot air
O SPRAY
R 128.84 kg exhaust air DRYER 1467.65 kg Na2P3O10
1162.93 kg moisture 1.16 kg moisture
163.07 kg Na5P3 O10
CYCLONE HAMMER
1291.77 kg exhaust gas MILL
163.07 kg Na5P3O10
BOILER
1630.72 kg Na5P3O10
1630.72 kg Na5P3O10
BUCKET
ELEVATOR
MILLED
PRODUCT
Source: http:/www.google.com
22
Table 11
Time Table
Projected time Mar 2003

Approval of Feasibility March 2003
Land Acquisition Mar-May 2003
Registration of SEC March – July 2003
Registration of BOI June – August 2003
Registration of DTI/DENR May - August 2003
Registration Mayors permit September 2003
Acquisition of offices March – December 2003
May – June 2003, Dec. 2003 – March 2004,
Hiring of Personnels
June 2005, Nov. – Dec 2005
Plant Construction January – December 2004
Ordering of Machineries January – May 2005
Installation of Equipment Apr-Aug 2005
Purchasing of Raw Materials Aug-Nov 2005
Trial Run December 2005
Start-up of Operation January 2006
Financial Study
Financing of the project will be 163,282,454 pesos generated by the stockholder’s
equities and long-term loan from the Development Bank of the Philippines. Fifty percent (52%) of
the capital funding shall come from the stockholders and the Development Bank of the
Philippines will cover the remaining forty eight percent (48%). The operating expense is
32,843,983 pesos and the cost of sales is 160,555,619 pesos for the first year. The total annual
salaries and wages is 11,136,000 pesos and the fringe benefits for non-agency employees are
assumed at thirty percent (30%) of salary is equal to 3,340,800 pesos per year. The net income
for the year 2006 is 13,512,656. The payback period is 3.67 years and the return of investment is
31%.
Major Assumptions:
1. Pre-Operating expenses increases by 10% at the year 2005
23
2. The production increases by 5% every year
3. 95% of the production volume and beginning inventory are sold
4. Salaries and Wages increases by 10% every year
5. The percentage of Salaries and Wages due to Fringe and Benefits is
30%
6. The percentage of equipment cost due to repairs and maintenance is
0.8%
7. The percentage increase in repairs and maintenance is 5%
8. The percentage of the Fixed Capital Investment due to Insurance
Expense is 1.5%
9. The percentage of Sales due to Sales Tax is 3%
10. The percentage of Sales due to advertising and promotions is 1%

11. The percentage of Sales due to delivery expenses is 5%
12. The percentage of Total land and Building Cost due to taxes and licenses is 10%
13. The office supplies increase by 3% every year
14. The percentage of amortization due to pre-operating expenses is 10%
15. The percentage of income tax is 32%
16. The percentage of Total Sales due to Account Receivable is 8%
17. The percentage of raw materials due to accounts payable is 8%
24
FINANCIAL STUDY
Gantt Chart
YEAR 2003 2004 2005 2006

MONTHS F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M
Approval of Feasibility
Land Acquisition
Lisensing
BOI
DTI
DENR
SEC
Mayors permit
Acquisition of offices
Plant Construction
Ordering of Machineries
Installation of Equipment
Purchasing of Raw Materials
Trial Run
Start-up of Operation
Quantitative Inventory of Raw Materials
25
a) For Na2CO3 (Purity = 96%)
Beginning Ending Beginning Ending
Year Purchase Usage Unit Cost Purchase Usage
Inventory Inventory Inventory Inventory
(in kg) (in kg) (in kg) (in kg) php/kg (in PhP) (in Php) (in Php) (in PhP)
2005 0 528966 88161 440805 9.06 0 4792432 798739 3993693
2006 440805 5355781 5333741 462845 9.67 3993693 51790402 51308384 4475711
2007 462845 5623570 5600428 485988 10.32 4475711 58035242 57495568 5015396
2008 485988 5904749 5880449 510287 11.01 5015396 65011286 64408412 5618260
2009 510287 6199986 6174472 535801 11.74 5618260 72787836 72115792 6290304
2010 535801 6509986 6483196 562591 12.49 6290304 81309725 80573267 7026762
2011 562591 6835485 6807355 590721 13.30 7026762 90911951 90082123 7856589
2012 590721 7177259 7147723 620257 14.14 7856589 101486442 100572598 8770434
2013 620257 7536122 7505109 651270 15.02 8770434 113192552 112180911 9782075
2014 651270 7912928 7880365 683833 15.93 9782075 126052943 124941559 10893460
2015 683833 8308575 8274383 718025 16.88 10893460 140248746 139021944 12120262
26
b) For H3PO4 (Purity = 98%)
2005 0 565270 95801 469469 15.96 0 9021709 1528984 7492725
2006 469469 5704045 5680572 492942 17.11 7492725 97596210 96654698 8434238
2007 492942 5989248 5964601 517589 18.44 8434238 110441733 109331630 9544341
2008 517589 6288710 6262831 543469 19.96 9544341 125522652 124219371 10847641
2009 543469 6603146 6575972 570642 21.67 10847641 143090174 141571981 12365812
2010 570642 6933303 6904771 599174 23.57 12365812 163417952 161661233 14122531
2011 599174 7279968 7250009 629133 25.65 14122531 186731179 184716449 16137261
2012 629133 7643966 7612510 660590 27.92 16137261 213419531 211113147 18443673
2013 660590 8026165 7993135 693619 30.38 18443673 243834893 241206390 21072145
2014 693619 8427473 8392792 728300 32.20 21072145 271364631 268985516 23451260
2015 728300 8848846 8812432 764715 34.13 23451260 302011114 299362685 26099723
Quantitative Projection of Production and Finished Goods and Goods Sold
27
Year Production Production Beginning Ending Sales Volume Selling Price Total Sales (PhP)
Volume (in Volume (in Inventory (in Inventory (in (in sack) (PhP/kg)
kg) sack) sack) sack)
2006 7103416 157854 0 7893 149961 33.17 223,839,287
2007 7458587 165746 7893 8682 164957 35.23 261,514,580
2008 7831516 174034 8682 9136 173580 37.44 292,447,584
2009 8223092 182735 9136 9594 182277 39.80 326,458,107
2010 8634247 191872 9594 10073 191392 42.31 364,400,798
2011 9065959 201466 10073 10577 200962 44.97 406,676,751
2012 9519257 211539 10577 11106 211010 47.78 453,692,601
2013 9995220 222116 11106 11661 221561 50.73 505,790,529
2014 10494981 233222 11661 12244 232639 53.84 563,637,769
2015 11019730 244883 12244 12856 244271 57.09 627,544,413
Assumptions:
Production increases 5% every year
95% of the production volume and beginning inventory (in sack) are sold
Quantitative Projection of Energy Required
Total Energy Total Energy

Energy Consumption Energy Consumption Rate
Year Consumption Consumption (in
(variable; in kWh) (fixed; in kWh) (in PhP)
(in KWh) PhP)
2006 429495 14911 444406 5.50 2,444,234
28
2007 468540 16266 484807 5.61 2,719,766
2008 507585 17622 525207 5.72 3,004,186
2009 546631 18977 565608 5.84 3,303,150
2010 585676 20333 606009 5.95 3,605,751
2011 624721 21689 646409 6.07 3,923,703
2012 663766 23044 686810 6.19 4,251,352
2013 702811 24400 727210 6.32 4,595,969
2014 741856 25755 767611 6.44 4,943,414
2015 780901 27111 808011 6.57 5,308,635
29
TOTAL PROJECT COST
Fixed Capital Investment Cost
Land Cost 17,550,000
Building Cost 25,088,000
Equipment and Machinery Cost 21,078,140
TOTAL 63,716,140
Organizational and Pre-Operating Expenses Cost

Organizational Expenses 21,062,500
Pre-Operating Expenses 29,669,294
TOTAL 50,731,794
Working Capital Cost

Working Capital @ 3 months of Operating Expenses and
48,834,520
Cost of Sales
TOTAL PROJECT COST 163,282,454
30
COST OF SALES
COST OF SALES 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Direct Raw Materials
Na2CO3 51,308,384 57,495,568 64,408,412 72,115,792 80,573,267 90,082,123 100,572,598 112,180,911 124,941,559 139,021,944
H3PO4 96,654,698 109,331,630 124,219,371 141,571,981 161,661,233 184,716,449 211,113,147 241,206,390 268,985,516 299,362,685
Total Direct Raw Materials 147,963,082 166,827,197 188,627,783 213,687,773 242,234,500 274,798,572 311,685,745 353,387,301 393,927,075 438,384,629
Packaging Cost 4,498,830 5,097,171 5,525,051 5,975,040 6,463,308 6,989,458 7,558,378 8,175,601 8,840,282 9,560,767
Direct Labor
Salaries and Wages 1,260,000 1,386,000 1,524,600 1,677,060 1,844,766 2,029,243 2,232,167 2,455,384 2,700,922 2,971,014
Fringe Benefits 378,000 415,800 457,380 503,118 553,430 608,773 669,650 736,615 810,277 891,304
Total Direct Labor 1,638,000 1,801,800 1,981,980 2,180,178 2,398,196 2,638,015 2,901,817 3,191,999 3,511,198 3,862,318
Manufacturing Overhead
Indirect Labor 4,416,000 4,857,600 5,343,360 5,877,696 6,465,466 7,112,012 7,823,213 8,605,535 9,466,088 10,412,697
Fringe Benefits 1,324,800 1,457,280 1,603,008 1,763,309 1,939,640 2,133,604 2,346,964 2,581,660 2,839,826 3,123,809
Utilities
Electricity 2,444,234 2,719,766 3,004,186 3,303,150 3,605,751 3,923,703 4,251,352 4,595,969 4,943,414 5,308,635
Water 70,861 75,892 81,280 87,051 93,232 99,851 106,941 114,534 122,665 131,375
Fuel 3,521,826 3,771,876 4,039,679 4,326,496 4,633,677 4,962,668 5,315,018 5,692,384 6,096,543 6,529,398
Total Utilities 6,036,921 6,567,534 7,125,145 7,716,698 8,332,660 8,986,223 9,673,310 10,402,886 11,162,622 11,969,407
Waste Treatment 300,000 315,000 330,750 347,288 364,652 382,884 402,029 422,130 443,237 465,398
Repairs and Maintenance 145,383 152,652 160,284 168,299 176,714 185,549 194,827 204,568 214,796 225,536
Insurance Expenses 955,742 953,551 953,551 953,551 953,551 953,551 953,551 953,551 953,551 953,551
Normal Depreciation
Machinery and Equipment 799,017 799,017 799,017 799,017 799,017 799,017 799,017 799,017 799,017 799,017
Building 501,760 501,760 501,760 501,760 501,760 501,760 501,760 501,760 501,760 501,760
Total Normal Depreciation 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777
31
Taxes and Licenses 426,380 426,380 426,380 426,380 426,380 426,380 426,380 426,380 426,380 426,380
Total Manufacturing Overhead 14,906,003 16,030,773 17,243,255 18,553,996 19,959,838 21,480,980 23,121,051 24,897,487 26,807,278 28,877,556
Total Manufacturing Cost 169,005,915 189,756,942 213,378,070 240,396,987 271,055,842 305,907,025 345,266,991 389,652,388 433,085,833 480,685,270
Finished Goods
Inventory,Beginning - 8,450,296 9,487,847 10,668,904 12,019,849 13,552,792 15,295,351 17,263,350 19,482,619 21,654,292
Inventory,End 8,450,296 9,487,847 10,668,904 12,019,849 13,552,792 15,295,351 17,263,350 19,482,619 21,654,292 24,034,263
COST OF SALES 160,555,619 180,269,095 202,709,167 228,377,138 257,503,050 290,611,674 328,003,641 370,169,768 411,431,541 456,651,006
Percentage Increase in Direct and Indirect Labor 0.10

Percentage of Direct and Indirect Labor due to Fringe Benefits 0.30
Percentage of Equipment Cost due to Repairs and Maintenance 0.008
Percentage Increase in Repairs and Maintenance 0.05
Percentage of Fixed Capital Investment due to Insurance Expense 0.015
Percentage of Total Land and Building Cost Due to Taxes and Licenses 0.010
32
OPERATING EXPENSES
Selling Expenses 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Salaries and Wages 840,000 924,000 1,016,400 1,118,040 1,229,844 1,352,828 1,488,111 1,636,922 1,800,615 1,980,676
Fringe Benefits 252,000 277,200 304,920 335,412 368,953 405,849 446,433 491,077 540,184 594,203
Sales Tax 6,715,179 7,845,437 8,773,428 9,793,743 10,932,024 12,200,303 13,610,778 15,173,716 16,909,133 18,826,332
Sales Commission 223,839 261,515 292,448 326,458 364,401 406,677 453,693 505,791 563,638 627,544
Advertising and Promotions 2,238,393 2,260,777 2,283,385 2,306,218 2,329,281 2,352,573 2,376,099 2,399,860 2,423,859 2,448,097
Miscellaneous Expenses 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Delivery Expenses 11,191,964 13,075,729 14,622,379 16,322,905 18,220,040 20,333,838 22,684,630 25,289,526 28,181,888 31,377,221
Normal Depreciation 106,667 106,667 106,667 106,667 106,667 106,667 106,667 106,667 106,667 106,667
Total 21,593,042 24,776,325 27,424,626 30,334,444 33,576,209 37,183,734 41,191,411 45,628,559 50,550,984 55,985,741
General And Administrative Expenses

Fringe Benefits 1,386,000 1,524,600 1,677,060 1,844,766 2,029,243 2,232,167 2,455,384 2,700,922 2,971,014 3,268,115
Amortization of Pre-Operating Expenses 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179
Office Supplies 33,899 34,916 35,963 37,042 38,154 39,298 40,477 41,691 42,942 44,231
Total 11,250,942 11,852,559 12,514,266 13,242,071 14,042,581 14,923,064 15,891,515 16,956,729 18,128,379 19,417,107
Total Operating Expenses 32,843,983 36,628,883 39,938,892 43,576,515 47,618,790 52,106,798 57,082,927 62,585,288 68,679,363 75,402,848
33
Assumptions:
Percentage of increase of wages and salaries 10%

Percentage of wages and salaries due to fringe benefits 30%
Percentage of sales due to sales tax 3%
Percentage of sales due advertising and promotions 1%
Percentage of total sales due to delivery expense 5%
Percentage increase of office supplies 3%
Percentage of amortization due to pre-operating expense 10%
34
INCOME STATEMENT
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
SALES 223,839,287 261,514,580 292,447,584 326,458,107 364,400,798 406,676,751 453,692,601 505,790,529 563,637,769 627,544,413
Cost of Sales 160,555,619 180,269,095 202,709,167 228,377,138 257,503,050 290,611,674 328,003,641 370,169,768 411,431,541 456,651,006
Gross Profit on Sales 63,283,667 81,245,485 89,738,417 98,080,969 106,897,749 116,065,077 125,688,960 135,620,761 152,206,228 170,893,406
Operating Expenses 32,843,983 36,628,883 39,938,892 43,576,515 47,618,790 52,106,798 57,082,927 62,585,288 68,679,363 75,402,848
Net profit (loss) on

30,439,684 44,616,602 49,799,525 54,504,454 59,278,958 63,958,279 68,606,033 73,035,473 83,526,865 95,490,559
Operations
Less: Financial
charges
Local 10,568,131 10,008,158 9,372,588 8,651,217 7,832,460 6,903,171 5,848,428 4,651,295 3,292,549 1,750,372
Net Profit before

19,871,553 34,608,444 40,426,937 45,853,237 51,446,498 57,055,108 62,757,605 68,384,178 80,234,316 93,740,187
Income Tax
Provision for Income
6,358,897 11,074,702 12,936,620 14,673,036 16,462,880 18,257,635 20,082,434 21,882,937 25,674,981 29,996,860
Tax
Net Profit after Tax 13,512,656 23,533,742 27,490,317 31,180,201 34,983,619 38,797,473 42,675,171 46,501,241 54,559,335 63,743,327
Percentage of Income Tax = 32%
35
PROJECTED CASH FLOW STATEMENT
- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
ESTIMATED CASH RECEIPTS
From Operations:
Net profit after interest and tax - 13,512,656 23,533,742 27,490,317 31,180,201 34,983,619 38,797,473 42,675,171 46,501,241 54,559,335 63,743,327
Add back:
Increase (decrease) in current
- 18,309,826 6,243,034 3,626,475 3,763,942 4,097,817 4,427,991 4,805,827 5,170,221 7,023,255 7,909,262
Liabilities
Amortization of pre-operating
- 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179
Expenses
Depreciation - 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547
Decrease (increase) in non-cash
- 13,447,490 2,401,786 1,749,533 1,881,573 2,075,181 2,280,077 2,509,010 2,746,990 3,308,952 3,617,238
current assets
Total cash receipts from operations - 24,491,718 33,491,716 35,483,986 39,179,296 43,122,981 47,062,114 51,088,714 55,041,198 64,390,364 74,152,077
From Other Sources:
Increase in capital stock
Preferred 21,250,000
Common 63,750,000
Total 85,000,000
Increase (decrease) in long-term loans
Local 78,282,454
Total 78,282,454
Total cash receipts from other sources 163,282,454
TOTAL ESTIMATED CASH RECEIPTS 163,282,454 24,491,718 33,491,716 35,483,986 39,179,296 43,122,981 47,062,114 51,088,714 55,041,198 64,390,364 74,152,077
36
ESTIMATED CASH
DISBURSEMENTS
Capital expenditures
Land and improvements 17,550,000
Building 25,088,000
Machinery and Equipment 21,078,140
Organizational and pre-
50,731,794
Operating
Total 114,447,934
Other Disbursements
Amortization of long-term
Liabilities
Local - 4,147,950 4,707,924 5,343,493 6,064,865 6,883,622 7,812,911 8,867,653 10,064,787 11,423,533 12,965,710
Total - 4,147,950 4,707,924 5,343,493 6,064,865 6,883,622 7,812,911 8,867,653 10,064,787 11,423,533 12,965,710
TOTAL ESTIMATED CASH
114,447,934 4,147,950 4,707,924 5,343,493 6,064,865 6,883,622 7,812,911 8,867,653 10,064,787 11,423,533 12,965,710
DISBURSEMENTS
NET CASH INFLOW

48,834,520 20,343,768 28,783,792 30,140,492 33,114,432 36,239,359 39,249,203 42,221,061 44,976,411 52,966,831 61,186,367
(OUTFLOW)
CASH BALANCE, BEGINNING - 48,834,520 69,178,287 97,962,080 128,102,572 161,217,004 197,456,363 236,705,566 278,926,627 323,903,038 376,869,869
CASH BALANCE, END 48,834,520 69,178,287 97,962,080 128,102,572 161,217,004 197,456,363 236,705,566 278,926,627 323,903,038 376,869,869 438,056,236
37
BALANCE SHEET STATEMENT
ASSETS - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
CURRENT ASSETS
Cash 48,834,520 69,178,287 97,962,080 128,102,572 161,217,004 197,456,363 236,705,566 278,926,627 323,903,038 376,869,869 438,056,236
Accounts Receivables 0 17,907,143 20,921,166 23,395,807 26,116,649 29,152,064 32,534,140 36,295,408 40,463,242 45,091,022 50,203,553
Inventories
Finished goods 0 8,450,296 9,487,847 10,668,904 12,019,849 13,552,792 15,295,351 17,263,350 19,482,619 21,654,292 24,034,263
Raw Material 11,486,419 12,909,949 14,559,737 16,465,901 18,656,116 21,149,293 23,993,851 27,214,107 30,854,221 34,344,720 38,219,985
Total Non-cash Current Assets 11,486,419 13,447,490 15,849,276 17,598,809 19,480,382 21,555,563 23,835,641 26,344,651 29,091,641 32,400,593 36,017,832
Total Current Assets 48,834,520 82,625,777 113,811,356 145,701,381 180,697,386 219,011,926 260,541,207 305,271,278 352,994,679 409,270,462 474,074,068
Property, Plant and Equipment

Land and improvements 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000
Buildings 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000
Machinery and Equipment 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140
Less: Accumulated
0 1,043,547 2,087,094 3,130,641 4,174,188 5,217,735 6,261,282 7,304,829 8,348,375 9,391,922 10,435,469
Depreciation
Total Net Property, Plant and
63,716,140 62,672,593 61,629,046 60,585,499 59,541,952 58,498,405 57,454,858 56,411,311 55,367,765 54,324,218 53,280,671
Equipment
Pre-Operating Expenses 50,731,794 45,658,615 40,585,435 35,512,256 30,439,076 25,365,897 20,292,718 15,219,538 10,146,359 5,073,179 0
TOTAL ASSETS 163,282,454 190,956,985 216,025,837 241,799,136 270,678,414 302,876,229 338,288,783 376,902,127 418,508,803 468,667,859 527,354,738
38
LIABILITIES AND
- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
STOCKHOLDERS EQUITY
Current Liabilities
Accounts payable 0 11,950,929 13,478,158 15,242,715 17,270,241 19,578,214 22,211,450 25,192,478 28,562,196 31,793,406 35,380,789
Income tax payable 0 6,358,897 11,074,702 12,936,620 14,673,036 16,462,880 18,257,635 20,082,434 21,882,937 25,674,981 29,996,860
Total 0 18,309,826 24,552,860 28,179,335 31,943,277 36,041,094 40,469,085 45,274,911 50,445,132 57,468,387 65,377,649
Long-term liabilities
Local Bank 78,282,454 74,134,503 69,426,580 64,083,086 58,018,222 51,134,600 43,321,689 34,454,036 24,389,249 12,965,716 0
TOTAL LIABILITIES 78,282,454 92,444,329 93,979,440 92,262,421 89,961,498 87,175,694 83,790,774 79,728,947 74,834,382 70,434,103 65,377,649
Stockholders Equity
Capital stock
Preferred stock 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000
Common stock 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000
Total 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000
Retained earnings
Balance, beginning 0 0 13,512,656 37,046,398 64,536,715 95,716,916 130,700,535 169,498,009 212,173,180 258,674,421 313,233,756
Net profit (loss) 0 13,512,656 23,533,742 27,490,317 31,180,201 34,983,619 38,797,473 42,675,171 46,501,241 54,559,335 63,743,327
Balance, end 0 13,512,656 37,046,398 64,536,715 95,716,916 130,700,535 169,498,009 212,173,180 258,674,421 313,233,756 376,977,083
TOTAL STOCKHOLDERS
85,000,000 98,512,656 122,046,398 149,536,715 180,716,916 215,700,535 254,498,009 297,173,180 343,674,421 398,233,756 461,977,083
EQUITY
TOTAL LIABILITIES AND

163,282,454 190,956,985 216,025,837 241,799,136 270,678,414 302,876,229 338,288,783 376,902,127 418,508,803 468,667,859 527,354,732
STOCKHOLDERS' EQUITY
DIFFERENCE OF ASSETS
0 0 0 0 0 0 0 0 0 0 0
AND LIABILITIES
Assumptions:
Percentage of Total Sales due to Account Receivable 8%
Total Percentage of Raw Materials due to Account Payable 8%
39
PAYBACK PERIOD
1 2 3 4 5 6 7 8 9 10
Equity 85,000,000 71,487,344 47,953,602 20,463,285 (10,716,916) (45,700,535) (84,498,009) (127,173,180) (173,674,421) (228,233,756)
Net Income 13,512,656 23,533,742 27,490,317 31,180,201 34,983,619 38,797,473 42,675,171 46,501,241 54,559,335 63,743,327
Difference 71,487,344 47,953,602 20,463,285 (10,716,916) (45,700,535) (84,498,009) (127,173,180) (173,674,421) (228,233,756) (291,977,083)
Payback Period = 3.67 Years
Return of Investment = 31%
40
41
SOCIO ECONOMIC STUDY
Laguna is a quaint, rustic province south of Metro Manila. It is a place

packed with history and culture.
The Laguna Technopark facilities in Sta. Rosa and Biñan are easily accessible; only 47
kilometers from the Philippines' primary international airport, 50 kilometers from the international
seaport in Metro Manila, and 44 kilometers from Makati, the country's premier business district.
Laguna Technopark's location in the dynamic Calabarzon region, comprising the
provinces of Cavite, Laguna, Batangas, Aurora, Rizal and Quezon, which is the most progressive
among government-identified priority growth centers, allows it to benefit from considerable
synergies.
42
CONCLUSION AND RECOMMENDATION
We conclude that three (3) aspects of the study of STPP, the market, technical, and
financial prove that this study is feasible. The market analysis shows that there ‘s still a need to
produce sodium tripolyphosphate locally because the only producer here in the Philippines,
namely Chem-Phil, only fill in 75% of the local total demand. The technical study shows that the
equipment and the process used are possible in the production of sodium tripolyphosphate. The
financial study shows that putting up an STPP plant is profitable and you can have your
investment back as short as 3.67 years.
For future study, we recommend that the historical local price of Chem-Phil up to the
present be made available for further study in the pricing of sodium tripolyphosphate. Such data
is available in the Securities and Exchange Commission (SEC). We also recommend further study
in the technical aspect especially the large amount of CO2 being released in the atmosphere
because you can still profit a lot by selling it to other industries that need CO2 for their
production.
I. Company Profile
A. Company Name: STPP Manufacturing Incorporated
43
The name of our enterprise, which will give the distinct image of being the
newly established company that produces quality product in the Philippines.
Company Logo:
Our logo will be the banner of our company. This contains the acronym of our product Sodium Tripolyphosphate (STPP).
The four-sided edge represents the number of individuals who conceptualized most of the material. Its color: white signifies the purity
of our product; black signifies the continuity of our company and the seal of Excellency.
B. Mission and Vision
Philippine Mission for the Year 2006
To be the most efficient company that produces high quality sodium

tripolyphosphate in the Philippines.
Philippine Vision for the year 2006

With the vision of making the Philippines an industrialized country by the year 2006, it is a
good indicator in establishing a new industry. The STPP Manufacturing Incorporated is one of
these industries that could help make the Philippines an industrialized country.
To take us from where we are, we ought to forge a strategic plan among key national
factors characterized by:
44
- A corporate approach to development; setting clear and doable targets.
- Business, in turn should play a lead role in widening the base industry. It should
contribute to national stability and productivity of giving labor and more opportunities
for initiative, enterprise and participation.
- Labor should focus on developing a more positive work ethic industry, enterprise,
technical skills and a passion for excellence.
II. Product Description
A. Project Introduction:
Sodium Tripolyphosphate (STPP) is a white substance with highly hygroscopic power and
has a formula of Na5P3O10. It has an outstanding property as a builder in laundry products. Its prime
role is that of softening agent for hard water, this is done by the sequestration of both calcium and
magnesium ion to form soluble compounds. In addition, STPP fulfills a number of other important
functions like it provides necessary alkaline buffer capacity for the neutralization and saponification of
acid soils and it also assists in the breakdown of soil particles to much smaller sizes so that they can be
easily disperse in the wash and readily deposited on the fabric. Technically, it is easy to use because it
is compatible with other ingredients of the detergent and helps in the production of crisp free-flowing
powders.
Sodium tripolyphosphate has a very low toxicity and it plays an important

role during the washing process in which its functions are:
-To eliminate the alkaline earth ions from water and precipitation of surfactants.
45
-To loosen chemical-physical bonds within the dirt, and between dirt and substrate.
-To disperse soil in detergents solution.
-To buffer the ph of the washing machine solution
B. History of the Product:
The establishment of Polyphosphates Incorporated (PPI) in 1971 marked the entry of

Chemical Industry of the Philippines Incorporated (CIP) into a new area of manufacturing under
investments; PPI is the first manufacturer of detergent phosphates in the Asian Region. Classified
as preferred pioneer enterprise, it enjoys the full benefits and incentives for its production of
STPP.
In April 1980 Chemical Industry of the Philippines Incorporated entered a joint venture
agreement with Albright and Wilson Ltd. (A&W), one of the worlds leading phosphorus and
phosphate chemical producers. In this agreement, A&W purchased 40% of the total subscribed
and paid up capital of Polyphosphates Inc. (PPI).
PPI was ranked no. 178 in terms of revenues in 1988. It enjoys 50% import tariff
protection by virtue of Executive Order no. 49 dated October 15, 1986.
In 1984, PPI successfully launched another BOI registered pioneer enterprise. A
phosphoric acid plant was completed in 1984 at the Pasig Compound, the first in the country and
the largest in ASBAN Region. The new plant is a backward integration project in providing major
raw materials for STPP production. It can also provide food grade phosphoric acid for the food
and beverage industries. The phosphoric acid plant has a great export potential and gives PPI the
capability of manufacturing a variety of downstream phosphate products.
46
C. Product Properties:
Molecular
Na5P3O10
formula
Molecular weight 633.70
Appearance and White Granulous powder, easily

properties soluble in water, no odor
Na5P3O10 min 96%

P2O5 min 57.0%
Water insoluble max 0.10%
Fe max 70ppm
Specification
PH 9.2-10
Phase I 5-50%
Density 0.40-1.00g/cm3
Whiteness min 90%
Fineness max 5%
USES:
– Very mild natural detergent used for cleaning heavy grease and oils.
47
D. Product Standards and Specification:
Food Grade Technical Grade
Tripolyphosphate as Na5P3O10 90% min. 90%, min.
TOTAL phosphate as Na5P3O10 57+1%, max 10%, max
Mataphosphate as Na5P3O10 1%, max
Orthophosphate Na2HPO4 1%, max
Iron as Fe 50 ppm, max 100ppm, max
Arsenic 3 ppm, max 50 ppm, max
Heavy metal as lead 10 ppm, max.
Lead 5 ppm, max
Flouride 50ppm, max
H2O as insoluble 0.1%, max 9.5 + 0.4%
pH of 1% solution 9.5 + 0.4 %
clarity of 5% solution clear
Temperature rise 10-15 0C
Packaging density, Final 0.85 - 1.05 g/cc 0.8 - 1.05 g/cc
48
E. Product Uses:
It has been for 25 years, the major detergent builder is used throughout
the world. Its superiority over other builders in this role arises from three major
facts.
- It is very effective water softener.
- It helps control the alkalinity of wash liquors and stabilizes the dispersion of soil remove
during washing process, thus producing its redecomposition.
- STPP is use as a material for synthetic detergents. It is also used for treatment of
textiles, as well as for the manufacture of pulp and paper.
Safety Profile
Poison by intravenous route. Moderate toxic by ingestion, subcutaneous route. Ingestion
of large dosage of sodium phosphate causes catharsis. Sodium meta- and pyrophosphate can
cause hemorrhage from the intestine if taken in large dosage. When heated to decomposition, it
emits toxic fumes of POx and Na2O.
49
MARKET ANALYSIS
A. Introduction
Detergent manufacturers have recognized the need to control water

hardness to ensure adequate cleaning by detergents. The detergency builders
employed in the past have been of two types: namely; sequestering builders and
precipitating builders. Sequestering builders are true chelating agents that
complex water hardness ions, mainly calcium and magnesium, to lessen the
availability of such ions to interface with the detergency process. Examples of
commonly used sequestering builders are the water-soluble salts of
polyphosphates and nitro acetates. Granular detergent products previously sold
in 50% by weight of aforementioned phosphates salts.
A finished-packaged detergent thus customarily consists of two main

components, the active ingredients (surfactants) and the builder. The fraction of
the surfactants is essentially for wetting the substance to be cleaned. The builder
performs many functions including buffering the pH, soil dispersion, and entire
deposition. Both classes of materials are required for proper detergent
performance.
In the cleaning area, it is well known that the efficiency of the soap or
detergents is considerably improved by the presence of certain supplementary
substance commonly referred to as builders. Some effects on built detergents
system are believed to be stabilization of solid soil, emulsification of soil particles,
the surface activity of the aqueous detergent solution, solubilization of water
insoluble materials, foaming air suds for main characteristics of washing
solutions, peptization of soil agglomerates neutralization of acids soil and
sequestration of mineral hardening constituent present in the washing solution.
50
Sodium tripolyphosphate is a proven builder, which is satisfactory in many
respects. However, it has some under criticism for their possible adverse effect
on the environment, because phosphate is a nutrient, there are some who fear
that their discharge into natural water waste will cause an excessive growth of
plant organisms. These plants can consume excessive amount of oxygen found
in the water, and so, fish are deprived of having enough oxygen supply. Because
of the concern over the adverse effect phosphate have in the environment,
efforts have been made to reduce/replace the phosphate in detergent
composition. Such effort has been difficult due to the many functions that
phosphates perform in a detergent composition.
B. Analysis of Supply and Demand
Based on the data gathered in the National Statistics Office (NSO) and
Board of Investment (BOI), the production of sodium tripolyphosphate is not
enough to supply the whole market, thus, importation is made to satisfy the
need of local consumers.
We have noticed that the only company existing here in the Philippines
doesn’t have enough supply of STPP; so other local manufacturers that can
supply the product is needed.
Based on the data we have gathered on the historical importation of

sodium tripolyphoshate, presented in the year 1992-2001, the data is fluctuating.
Based from our observation, once the importation decreases, an increase in
demand can be acquired after 3 years. In the year 1992-1995, the importation of
the product is increasing but on the year 1996-1998, a major decrease in
importation of sodium tripolyphosphate is acquire, then constant increasing in
the succeeding years.
51
In our projected supply for ten years, it is increasing but higher in the demand. So we conclude that a new company is
needed to meet the demand of the consumers.
Year Price (Php)

1990 18.54
1991 19.08
1992 21.27
1993 20.65
1994 22.76
1995 22.02
1996 21.94
1997 17.57
1998 23.48
1999 21.4
2000 24.49
2001 29.17
Price of STPP
35
30
25
Price
20
15
10
5
0
1985 1990 1995 2000 2005
Year

52
(PhP)
2006 33.17
2007 35.23
2008 37.44
2009 39.80
2010 42.31
2011 44.97
2012 47.78
2013 50.73
2014 53.84
2015 57.09
60.00
50.00
40.00
Price
30.00
20.00
10.00
0.00
2004 2006 2008 2010 2012 2014 2016
Year
Year Price (Php)

1990 6.2
1991 14.43
53
1992 10.1
1993 13.9
1994 11.64
1995 12.02
1996 10.04
1997 11.5
1998 16.52
1999 14.68
2000 15.15
2001 15.71
Historical Price of H3PO4
18
16
14
Price (PhP)
12
10
8
6
4
2
0
1988 1990 1992 1994 1996 1998 2000 2002
Year
Source:4.
Table National StatisticsPrice
Projected Office of H3PO4
Year Price (Php)

2002 13.64
2003 14.23
2004 15
2005 15.96
2006 17.11
2007 18.44
54
2008 19.96
2009 21.67
2010 23.57
2011 25.65
2012 27.92
2013 30.38
2014 32.2
2015 34.13
Figure 4. Projected Price of H3PO4
Projected Price of H3PO4
40
35
30
Price (Php)
25
20
15
10
5
0
2000 2002 2004 2006 2008 2010 2012 2014 2016
Year
Table 5. Historical Price of Na2CO3
Year Price (Php)

1990 6.81
1991 7.2
1992 6.9
1993 5.77
1994 4.16
1995 3.39
1996 4.03
1997 4.46
55
1998 5.75
1999 5.67
2000 5.16
2001 5.83
Figure 5. Historical Price of Na2CO3
Historical Price of Na2Co3
8
7
6
Price (PhP)
5
4
3
2
1
0
1988 1990 1992 1994 1996 1998 2000 2002
Year
Table 6. Projected Price of Na2CO3

Projected Price
Year (Php)
2002 7.46
2003 7.96
2004 8.45
2005 9.06
2006 9.67
2007 10.32
2008 11.01
2009 11.74
2010 12.49
2011 13.3
56
2012 14.14
2013 15.02
2014 15.93
2015 16.88
Figure 6. Projected Price of Na2CO3
Projected Price of Na2CO3
18
16
14
Price (Php)
12
10
8
6
4
2
0
2000 2002 2004 2006 2008 2010 2012 2014 2016
Year

(PhP)
2002 25.76
2003 26.34
2004 26.91
2005 27.48
2006 28.06
2007 28.63
2008 29.21
2009 29.78
2010 30.35
2011 30.93
2012 31.50
57
2013 32.08
Projected Price of STPP

35
30
25
Price
20
15
10
5
0
2000 2005 2010 2015
Year
Table 8. Historical Local Productions

Year Quantity (kg)
1992 9204611
1993 7119816
1994 8014215
1995 8254891
1996 10843201
1997 11000005
1998 13483886
1999 12020113
2000 14892616
2001 15028859
58
Chem-Phil is the only company that produces STPP locally. They supply
75% share in the market, 12.50% are being imported and our company will
cover the remaining 12.50%.
FIGURE 8. Historical Local Productions
16000000
14000000
12000000
Quantity
10000000
8000000
6000000
4000000
2000000
0
1992
1993
1994
1995
1996
1997
1998
1999
2000
Year 2001
TABLE 9. Historical Demand of Sodium Tripolyphosphate
Historical Demand of Sodium Tripolyphosphate

Year Demand (kg)
1992 10303636
1993 12374707
1994 13034820
1995 27195464
1996 24907468
1997 21167203
1998 19332692
1999 19213637
2000 25253088
59
2001 26496750
FIGURE 9. Historical Demand of Sodium Tripolyphosphate
Historical Total Demand of STPP
30000000
25000000
20000000
Quantity
15000000
10000000
5000000
0
1992 1994 1996 1998 2000
Year
Table
Source:10. Projected
National Total Demand of STPP
Statistics Office
Year Demand (kg)

2006 56888241.76
2007 60691126.67
2008 64983588.92
2009 69276051.16
2010 73568513.41
2011 78305150.89
2012 82153437.9
2013 86445900.14
2014 90738362.39
2015 95030824.63
60
Figure 10. Projected Total Demand of STPP
Projected Total Demand
100000000
90000000
80000000
70000000
Price (Php)
60000000
50000000
40000000
30000000
20000000
10000000
0
2004 2006 2008 2010 2012 2014 2016
Year
C. Market Segmentation
Figure 11
61
Market Segmentation
Others
10%
Detergent
90% Industries
D. Target Local Market
STPP is synonymous with detergents since 90% of it goes to detergent

industries. Consumption of this product will never fade for the fact that people
62
will always use detergents, the primary markets are the industries that uses
STPP as the raw materials in the production of their main products.
Sodium Tripolyphosphate Consumers
Procter and Gamble Philippine Incorporation
Colgate Palmolive Philippine Incorporation
Peerless Products Manufacturing Corporation
Royal Industries Development Corporation
Philippine Refining Company
Universal Robina Corporation
International Pharmaceutical Corporation
Sun Moon Star International
Essential Manufacturing Corporation
E. Market Share
Source: Department of Trade and Industry
63
Figure 12. Market Share
Market Share
Chem-Phil (75%)
STPPMI (12.50%)
12.50%
Importation (12.50%)
12.50%
75%
The STPP Manufacturing Incorporated will cover the 12.50% of the total demand in 2006. We will consider the year 2006
as the basis of the existence of our company.
64
F. Current Major Supplier (Exporter) to the Philippines of
Sodium Tripolyphosphate
1. Universal Chemical Company F-18, Desh Bandhu Gupta Market, Karol Bagh,
Karol Bagh,New Delhi - 110 005. India
2. Haifa Chemicals USA -For the detergent industry
3. Hunan Native in Wulipai, Changsha, China
4. INMAR Ltd in Primorskii 46, Russia
G. SWOT
STRENGTH
- Cheaper price
- Capital Cost is Low
WEAKNESS
- Availability of raw materials
OPPORTUNITY
- High importation demand
THREAT
- Local Company (ChemPhil) with stable relation with their

distributor
Source: http:/www.chemicalindustry.com
65
H. SITUATIONAL ANALYSIS
The future of the Chemical Industry in the Philippines is generally bright
when one takes into accounts the prospects for its rapid growing allied products.
With the indicators we considered, the establishments of new industries will be
beneficial to our economy and will provide employment to our unemployed
citizen.
The market of our product is very demanding considering the increase in

importation of STPP since 1998 up to the present and the minimal production of
our competitor.
I. MARKET PROCESS
Since we have competitors in the market namely Chem-Phil and other

local importers, we are going to distribute our product in a competitive way. It
will be packed in 45 kg per bag. The trade name of our product is STPP, which
will be printed in the bag together with the company logo.
Our product will be delivered by trucks. Drivers and other people that will
be needed for the delivery will be paid.
The term of sale would either be in cash or installment with a certain

condition. Payment would be in cash if only small quantity of our product is
purchased and credits if large quantity. In the credit basis, the company that will
purchase our product must give their full payments within 30 days. For
convenience, the purchasing companies can pay through the ATM accounts and
through bank transaction.
66
J. MARKETING PLANS AND ACTIVITIES
Since we have a competitor in the industry, a careful strategy should be

implemented. The company should hire salespersons that are equipped with
skills and talents necessary needed for our customers to be attracted in our
product rather than of our competitors. They should get the confidence of our
different target companies that are likely to be our potential customers. We will
also provide this company some brochures and leaflets for them to know all
about our product and our newly build company.
K. STATEMENT AND STRATEGIES
Product
Our product, sodium tripolyphosphate is a softening agent for hard water, acting by the sequestration of both calcium and
magnesium ion to form soluble compounds.
Place
Our plant will be located in Sta. Rosa, Laguna. This is very much
accessible because most of our target companies and consumers are located in
Laguna Technopark.
Promotions
Our company will give a great deal in advertising our product in the
industry, which includes ads in the newspapers, journals, and referral by our
customers. In this way, our product will be easily recognized in the market.
67
Price
The price of our product is much cheaper than our competitors. Our
customers will buy from us more likely than other companies selling at a higher
price.
Packaging
Packaging is one of the most important factors in marketing a

product. The aim of the packaging is to protect the product during
handling, transport, and storage units. Since STPP is a very unstable
product it needs an excellent and sealed package to prevent it from
accumulating moisture. The ink and paints used in marking should not
cause damage to the product or get obliterated during transportation.
STPP is sensitive to oxidation by air and wetness created by moist
on water, so container that will be used must ensure an airtight package,
which can withstand wear and tear during freight or storage, and it must be
sack with plastic lining that is suitable for maintaining the good quality of
the product.
Delivery
The final proof of quality is the experience of the customer when he

or she actually uses the product. It is important to ensure that the product
quality does not deteriorate between inspection by the supplier just before
dispatch and its receipt by the customer. Our product will be delivered to
our valued customers by trucks and always on time. The main priority of
our company is to deliver the product on time.
68
Storage
Storage procedure and condition for inputs materials, in-process

items and finished products should protect these items against
environmental and security hazards. Storage personnel should be made
aware of storage instruction for the different kinds of items stocked. These
instructions should be prominently displayed in storage areas for ease of
reference and compliance. Possible special storage conditions must be
indicated in the containers and packages for ready reference.
Access to stores should be limited to authorized personnel and
suitable procedures should be adopted for the receipt, storage and issues
of materials from stores. To prevent deterioration during storage,
appropriate steps should be taken when necessary. Some factors like
ventilation, air circulation, and possibility of contamination by other
products, etc. should be taken into consideration when deciding upon the
storage area. Accessibility to equipment for handling materials should be
likewise considered. Dangerous and inflammable goods should be stored
separately, well away from other items.
Periodic inspections of all stored goods should be carried out to
ensure that product quality has not deteriorated during storage. Whenever
such deterioration is noticed, immediate action should be taken to isolate
affected items in a separate place pending a decision on their disposal.
L. PRICE STUDY
The succeeding tables show the importation price of STPP in peso per
kilogram from 1990 to 2001. The data are gathered from the National Statistics
Office and from Bureau of Importation Services.
69
Year Price (Php)

1990 18.54
1991 19.08
1992 21.27
1993 20.65
1994 22.76
1995 22.02
1996 21.94
1997 17.57
1998 23.48
1999 21.4
2000 24.49
2001 29.17
Price of STPP
35
30
25
Price
20
15
10
5
0
1985 1990 1995 2000 2005
Year
It shows that there is an inconsistency in the prices of STPP. This is due to

different factors affecting the importation of our product. Between the year 2000
and 2001, the price increases of about 16% but then the historical demand
decreases in quantity between these periods. Therefore we can say that there is
an increase in the price of STPP even though the demand decreases.

70

(PhP)
2006 33.17
2007 35.23
2008 37.44
2009 39.80
2010 42.31
2011 44.97
2012 47.78
2013 50.73
2014 53.84
2015 57.09
60.00
50.00
40.00
Price
30.00
20.00
10.00
0.00
2004 2006 2008 2010 2012 2014 2016
Year
Chem-Phil currently sells STPP in the market at an average price of 48 pesos per
kilogram on the year 2003.
Our company aims to lower the existing price of STPP in the market. We tend to sell our
product with a retail price of 33.17 pesos per kilogram by the year 2006. Price change in
subsequent years will depend on the production cost (raw materials and energy costs), inflation,
economic stability and price control.
71
M. MARKETING CHANNEL AND DISTRIBUTION
Manufact
Manufacturer
Sales Management
Sales
Representative
Industrial Users
72
TECHNICAL STUDY
Introduction Of Process Design
I. Introduction:
Sodium Tripolyphosphate are made from mixture of mono and disodium

phosphate. This condition requires the material to under go first into several unit
operations before dried to produce the product, Sodium Tripolyphosphate.
In the manufacture of STPP, there are two ways of drying that can be
used to produce STPP, this are: Spray-drying and Rotary-kiln drying. In this
study spray dying is used because it is more efficient and very flexible even with
higher capacity than that of the Rotary kiln dryer.
A. Design Equipment:
1. Bucket Elevator (feed)
Type: Centrifugal discharge space bucket
Bucket size: 6x4x45 inches
Bucket spacing: 12 inches
Bucket speed: 225 ft/min
Capacity: 1.5 ton/hr-14 ton/hr
Shaft Diameter:
Head=1 15/16 in
Tail= 1 15/16 in
Pulley diameter
Head=20 in
Tail= 14 in
2. Bucket Elevator (product)
Type: centrifugal discharged space buckets
73
Bucket size=10x6x6 ¼ in
Bucket spacing: 16 in
Capacity: 2.5-45 ton/hr
Shaft Diameter
Head: 1 15/16 in
Tail: 1 15/16 in
Pulley Diameter
Head= 20 in
Tail= 16 in
3. Reactor
Type: Jacketed
Volume: 4000 gallons
Internal Pressure: atmospheric to 25 psi
4. Na2CO3 Tank
Type: Vertical tank with conical bottom head
Construction Details
Height: 4 ft
Diameter: 4 ft
Thickness of shell: 3/16 inches
Thickness of head: 3/16 inches
5. CO2 Separator
Area: 0.3096 ft2
Capacity: 185.74 ft3
6. Ortho Tank
Diameter: 4 ft
Height: 4 ft
Construction material: Stainless Steel
7. Phosphoric Acid Tank
Diameter: 4 ft
Height: 8 ft
74
8. Hammer Mill
Function: to pulverized the dried STPP
Construction Material: Carbon Steel
9. Water Tank
Diameter: 4 ft
Height: 8 ft
10. Spray Dyer
Dryer Surface Area: 80 ft2

11. Filter Press
Type: Cartridge
Area: 50 ft2
12. Boiler
Type: Oil/Gas fired, Field fab, 150 psi saturated
Boiler Capacity: 450lb/hr
Material of Construction: Carbon Steel
B. Plant Location:
Source: http:/www.matche.com
Plant Site
Municipality: Sta. Rosa
Province: Laguna
Location
The Laguna Technopark facilities in Sta. Rosa and Biñan are easily accessible; only 47
kilometers from the Philippines' primary international airport, 50 kilometers from the international
seaport in Metro Manila, and 44 kilometers from Makati, the country's premier business district.
75
Laguna Technopark's location in the dynamic Calabarzon region, comprising the
among government-identified priority growth centers, allows it to benefit from considerable
synergies.
Sta. Rosa is about 40 kilometers south of Manila. Binan, bound it on the northwest on
the south and southwest by Cabuyao, and on the west by Silang, Cavite. On the northwestern
horizon lies the Laguna Bay.
The Municipality of Sta. Rosa covers a total area of 5415 hectares that represents about
3% of the total land area of Laguna Province. Out of the town's eighteen barangays, they
comprise the Poblacion, namely, Barangay I-Kanluran, Barangay II- Malusak, and Barangay III is
the market area. The land area of the barangay is given in the appendix.
Raw Material Supply
Since our raw materials are mostly imported, we will utilize the need of a body of water
for transport or for delivery of raw materials. This could be provided by Laguna de Bay, which is
situated near the coastal towns. They can also be delivered thru lands by trucks for there are
many arterial roads, highways, and expressways.
Market
Supplying the market would be not a problem because Sta. Rosa is only 40 kilometers
from Manila. It has many roads, highways, and expressways to make our product accessible to
our customers. Since Manila is the center for trade and industry, it would not be a problem for
the plant to supply its potential customers and it is also adjacent to a number of provinces
making it an ideal location for the plant site.
Power and Fuel Supply
Sta. Rosa together with other neighboring municipalities of Binan, San Pedro, and Muntinlupa, derives its power supply
from the Meralco substation in Pulutan(Muntinlupa), Tagapo, and Balibago. Meralco has the franchise for power distribution in the
area. Power supply comes from Luzon Power Grid through the facilities of the National Power Corporation.
76
Climate
Like most of the areas in the Province of Laguna, the climate of Sta. Rosa is
characterized by two pronounced seasons: Dry from November to April and wet during the rest
of the months. Maximum rainfall usually occurs from July to September.
The average number of typhoons affecting the Sta. Rosa is 11.27. Probable months of
typhoon seasons are from June to December, although the rest of the months are not free.
Site Characteristics
Sta. Rosa is generally plain with 97.89% of its total area having a slope of zero to 2.5%,
thus, making it suitable for both agriculture and urban development. The town center and rice
lands are presently situated in the level portion of the municipality.
Due to the good water bearing characteristics, Sta. Rosa is in good ground water
development area, not to mention their strength and smooth land surface, it has all the
characteristics that an ideal plant site should possess.
Transportation
The Binan to Cabuyao National Highway serves as the main road and parallel to this is
the circumferential road in the coastal barangays. The other important arterial road is the
National Highway linking the Municipality of Silang in Cavite traversing of the Canlubang
Industrial Estates.
The South Expressway, which extends from Alabang Muntinlupa to Calamba, Laguna
transverses the middle portion of the municipality along Barangay Pulong, Sta. Cruz, and Malitlit.
Waste Disposal
The presence of industrial establishments in Sta. Rosa is a problem of whatever disposal

operation of such industries like textile manufacturing, piggery and poultry rising, and food
77
processing bringing with them attendant problem of waste water disposal. Laguna Technopark
has its own waste treatment facility that can treat our wastes.
Final Selection of Plant Location
The ideal plant location that we have chosen is the Laguna Technopark. Primarily
because Laguna is the best suited site in terms of utilities. Likewise, the industrial and
commercial activities in the municipality and surroundings are alive and has a future
advancement in our product
We give market and transportation facilities because of the direct access to the
consumer’s location. Manila, which is the center of trade and market, which is near to Sta.Rosa
and can be readily supplied by our product. A future plant of Procter and Gamble Philippines,
which is the major consumer of STPP, will be constructed in Canlubang Laguna. This in effect,
will be a great advantage in our service and the transportation of our product will be minimized.
Transportation will not be the problem since it is near to Manila concrete roads are good
enough in transporting our products.
Raw materials availability will acquired through importation (soda ash and phosphoric
acid)
II. Process Design
A. Process Description
Sodium Tripolyphosphate are produce by processing the reaction of phosphoric acid and
soda alkalies. Since phosphoric acid is tribasic, it forms three sodium salts. Sodium meta- and
para-phosphate are obtained by heating the corresponding sodium orthophosphate. Sodium
Tripolyphosphate is made by calcinating mixture of monobasic and dibasic sodium
orthophosphate.
Sodium Phosphate is known as ordinary “sodium phosphate” of commerce and maybe
considered the base of all the other phosphates. It is the intermediate in the production of
sodium tripolyphosphate.
Mixing Chemical formula:

5Na2Co3 + 6H3PO4 ------- 2NaH2PO4 + 4Na2HPO4 + 5H2O + 5CO2
78
Conversion Formula
5Na2CO3 + 6NH3PO4 ----- 2Na5P3O10 + 9H2O + 5CO2
Sodium Carbonate (soda ash) is introduced to the mixing tank, either as an aqueous
solution or solution made from hot liquor (850 c) or mother liquor from the filter. Phosphoric acid
(98% H3PO4) is added at the surface of the reaction tube. CO2 is driven off in the CO2 separator
with a pressure of 10psig and temperature of 85-900 C. Then the resulting disodium is filtered
hot at a temperature of 85-1000 C and split into two portions. It is stored in the ortho tank with a
temperature of 900C.
In the spray process, the orthophosphate is sprayed into the drying chamber where air is
pump at the rate of 7000cfm and 7 psig, enters at the top of the drying chamber flowing down
concurrent. It is wherein drying molecular dehydration conversion to STPP, annealing and cooling
takes in the sequence. Larger particles fall to the bottom of the dryer and the smaller particles
are swept with the gas into the cyclone separators. The fine particles are then pumped to the
hammer mill and into the bucket elevator.
79
80
FIGURE 13. Process Flow Diagram (Typical One Hour Operation in year 2006)
532.29 kg NaH2PO4
1259.74 kg Na2PO4
787.34 kg H2Ototal
1304.07 kg H3PO4 1.76 kg impurities
1175.47 kg Na2CO3
R
E 6.10 kg
FILTER
BUCKET A impurities
C PRESS
ELEVATOR T 531.76 kg NaH2PO4
BUNKER O 1258.48 kg Na2PO4
R
532.29 kg NaH2PO4 786.55 kg H2Ototal
1259.74 kg Na2PO4
587.74 kg H2O 1175.47 kg Na2CO3
1.76 kg impurities S 787.34 kg H2Ototal 531.76 kg NaH2PO4
E wt. CO2 =487.93 kg 1258.48 kg Na2PO4
Pwt. impurity=1.76kg ORTHO 786.55 kg H2O total
R TANK
MIXER A 487.93 kg CO2
1764.97 kg slurry T 128.84 kg hot air
O SPRAY
R 128.84 kg exhaust air DRYER 1467.65 kg Na2P3O10
1162.93 kg moisture 1.16 kg moisture
163.07 kg Na5P3 O10
CYCLONE HAMMER
1291.77 kg exhaust gas MILL
163.07 kg Na5P3O10
BOILER
1630.72 kg Na5P3O10
1630.72 kg Na5P3O10
BUCKET
ELEVATOR
MILLED
PRODUCT
81
C. MATERIAL BALANCE
Plant Capacity = 7111030.22 NK/yr (1 yr/ 363 days)(1 day/24 hr)
= 816.23 NK/hr
RXN:
5Na2CO3 + 6H3PO4 2NaH2PO4 + 4Na2HPO4 + 5H2O + 5CO2
NaH2PO4 + 2Na2HPo4 Na5P3O10 + 2H2O
OMB:
5Na2CO3 +6H3PO4 2Na5P3010 + 9H2O + 5CO2
Basis: 587.74 kg Pure Na2CO3
1. Mixer
Assumption: Wt. H2O=50% wt. of Na2Co3
Wt. impurities= 0.1%of total wt.
Feed Product
Wt Na2Co3 = 587.74 kg Wt. slurry = 882.49 kg
Wt H2O = 293.87 kg
Wt.impurities = 0.88 kg
83
2. Reactor
Feed
Wt.H3PO4 = 652.04 kg
Product
wt.NaH2PO4= 266.15 kg
Feed wt.Na2HPO4= 629.87 kg
wt. Total H2O = 393.67 kg
Wt.slurry from the mixer
wt.CO2 = 243.97 kg
= 882.49 kg
wt. impurities = 0.88 kg
3. Separator
CO2 Assumption: 100% CO2 liberated
Feed Product
Feed Component: weight (kg) % by weight
NaH2PO4 266.15 17.34
Na2HPO4 629.87 41.05
H2O 393.67 25.65
Impurities 0.88 0.06
CO2 243.973 15.90
TOTAL 1534.54 100%
84
Product Component: weight (kg) % by weight
NaH2PO4 266.15 20.62
Na2HPO4 629.87 48.81
H2O 393.67 30.50
TOTAL 1290.57 100%
Liberated CO2(100%)= 243.97 kg
4. Filter Press Assumption:
All impurities are removed

Product 0.1% of Na2HPO4, 0.1% NaHPO4, 0.1%
Feed of H2O goes with the filter cake
Feed Component: weight (kg) % by weight
NaH2PO4 266.15 20.62
Na2HPO4 629.87 48.81
H2O 393.67 30.50
TOTAL 1290.57 100%
85
NaH2PO4 265.88 20.64
Na2HPO4 629.24 48.84
H2O 393.28 30.52
TOTAL 1288.40 100%
Cake= 3.05 kg
5. Ortho Tank
Product
Feed
Feed Analysis = Product Analysis
NaH2PO4 265.88 20.64
Na2HPO4 629.24 48.84
H2O 393.28 30.52
TOTAL 1288.40 100%
86
6. Spray Dryer
Assumption:
- Hot air: 5% of the wt. of slurry
- 90% of the STPP converted went to the hammer mill
- 99.9% 0f the moisture went to the recycle
Feed
Wt. Slurry from Ortho
Tank = 1288.40 kg
hot air Recycle
Hot air = 64.42 kg Wt exhaust air = 64.42 kg

wt. moisture = 581.47 kg
wt.Na5P3O10 = 81.54 kg
Product
wt. Na5P3O10 = 733.83 kg
wt. Moisture = 0.58 kg
7. Cyclone
Assumption:
All the recycle Na5P3O10 goes to the hammer mill
Exhaust
645.89 kg
Feed
Wt. Of gas= 645.89 kg
Wt. Na5P3O10 = 81.54 kg
Product
81.54 kg
87
8. Hammer Mill
Feed
Wt. Na5P3O10 from spray dryer
733.83 kg
Product wt. of
Na5P3O10 = 815.36 kg
Feed
Wt. Na5P3O10 form cyclone
81.54 kg
9. Milled Product
Feed Product
Wt. Na5P3O10 Wt. Na5P3O10
= 815.36 kg = 815.36 kg
88
D. ENERGY BALANCE
SPRAY DRYER
= 587.74 kg Na2CO3 x (9mole H2O/5mole Na2CO3)
x (1mole Na2CO3/106kg Na2CO3) x (18kg H2O/1mole H2O)
= 179.65 kg
Wt. H2O total = 179.65 kg H2O + 582.05 kg H2O
= 761.70 kg (1cal/1g-OC) (1000g/1kg) (87.5 – 25)
= 47605625 cal (1J/0.239cal) (1h/3600s) (1kW/1000W)
= 55.33 kW = 74.19 hp
89
DESCRIPTION OF EACH RAW MATERIAL
A.) PHOSPHORIC ACID
Physical and Chemical Properties
Appearance : Brownish/greenish viscous liquid.
Odor : Slight acid odor.
pH (no dilution) :<1
Freezing point : –17.5oC (75%)
Boiling point : 133oC (75%)
Auto-ignition temperature : Not applicable
Vapor pressure : 267Pa at 20oC
Solubility in water : Miscible in all proportions.
Density : 1.58g.cm-3 at 15.5oC (75%)
Phosphoric Acid is a clear colorless liquid, H3PO4, used in fertilizers, soaps and
detergents. Phosphoric acid is corrosive to all parts of the body. Contact with the skin can cause
redness and burns. Splashes in the eyes cause irritation and burns. Acid mists may cause throat
and lung irritation. To the environment Phosphoric acid is harmful to aquatic life. Phosphoric
acid, any one of three chemical compounds made up of phosphorus, oxygen, and hydrogen. The
most
Common, orthophosphoric acid, H3PO4, is usually simply called phosphoric acid. Two molecules of
it are formed by adding three molecules of water, H2O, to one molecule of phosphorus pentoxide
(phosphoric anhydride, P2O5). It occurs as rhombic crystals or as a viscous liquid; both are
90
deliquescent. The crystals melt at about 42°C. It has specific gravity 1.834 at 18°C, is soluble in
alcohol, and is very soluble in water. It is a tribasic acid and forms orthophosphate salts with
one, two, or all three of the hydrogen’s replaced by some other positive ion. When it is heated to
about 225°C, it dehydrates to form pyrophosphoric acid, H4P2O7; at still higher temperatures
metaphosphoric acid, HPO3, is formed. Salts of pyrophosphoric acid are pyrophosphates; salts of
metaphosphoric acid are metaphosphates. Phosphoric acid is prepared commercially by heating
calcium phosphate rock with sulfuric acid; purer grades may be prepared by treating red
phosphorus with nitric acid. It is used in pickling and rustproofing metals, in acidifying jellies and
beverages, and in preparing phosphate salts.
91
B.) SODIUM BICARBONATE
Physical Properties
Molecular formula: 2Na2CO3*3H2O

Molecular Weight: 314
Appearance: White granule, odorless
Bulk Density: 0.92~1.822(g/ml)
Active Oxygen (AO): 12% or more
pH (1% solution) pH (1% aq.soln.) : 10~11
Solubility(g/100g water)
500C 12
2000C 14
5000C 18.5
Chemical compound, Na2CO3, soluble in water and very slightly soluble in alcohol. Pure
sodium carbonate is a white, odorless powder that absorbs moisture from the air, has an alkaline
taste, and forms a strongly alkaline water solution. It is one of the most basic industrial
chemicals. Sodium carbonate decahydrate, Na2CO3·10H2O, is a colorless, transparent crystalline
compound commonly called sal soda or washing soda. Because seaweed ashes were an early
source of sodium carbonate, it is often called soda ash or, simply, soda. The Solvay proces
provides most sodium carbonate for industrial use. It is found in large natural deposits and is
mined in Wyoming; it is also recovered (with other chemicals) from lake brines in California. The
principal uses of sodium carbonate are in the manufacture of glass and the production of
chemicals. It is also used in processing wood pulp to make paper, in making soaps and
detergents, in refining aluminum, in water softening, and in many other applications. The Leblanc
process, the first successful commercial process for making soda, is no longer used in the United
States but played a major role in the Industrial Revolution.
Chemical Properties
92
Sodium Carbonate Peroxy Hydrate Hydrate is decomposed in water solution into sodium
carbonate (Na2CO3) and hydrogen peroxide (H2O2). It has the same properties as hydrogen
peroxide (H2O2).
93
SAFETY, HEALTH, and ENVIRONMENTAL CONSIDERATIONS
Safety factor must be given a special attention in all industry especially in a chemical
plant. Safety operation throughout the process must be assured. Better equipment design must
be utilized and should be taking into consideration the characteristics of the handled.
Safety operating procedures shall be the primary reference for training programs of
employees. Experienced, knowledgeable personnel shall help prepare, review and update the
safety operating procedures of the plant. Management shall assign responsibility and
accountability for the preparation maintenance and review of safe operating procedures to
specific management units. Visual aids graphics, highlights, caution signs, and similar devices
shall be used to make safe operating procedure more understandable. An accident or other
downgrading event shall serve as a trigger to review relevant operating procedures. All workers
must know by heart the operating procedures for their assigned jobs.
Proper waste treatment must be available so that the emission from the plant will not
affect the environment and the living things outside the plant
94
FINANCIAL STUDY
Gantt Chart
YEAR 2003 2004 2005 2006

MONTHS F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M
Approval of Feasibility
Land Acquisition
Lisensing
BOI
DTI
DENR
SEC
Mayors permit
Acquisition of offices
Plant Construction
Ordering of Machineries
Installation of Equipment
Purchasing of Raw Materials
Trial Run
Start-up of Operation
95
Manpower
ADMINISTRATION QUANTITY MONTHLY ANNUAL TOTAL F &B

General Manager 1 100000 1200000 1200000 360000
HRD Manager 1 30000 360000 360000 108000
Finance Manager 1 30000 360000 360000 108000
Chief Accountant 1 30000 360000 360000 108000
Accounting Clerk 1 20000 240000 240000 72000
Purchasing Supervisor 1 30000 360000 360000 108000
Production Manager 1 30000 360000 360000 108000
Shift Supervisor 3 25000 300000 900000 270000
Secretary 2 20000 240000 480000 144000
Total 12 4620000 1386000
SALES LABOR QUANTITY MONTHLY ANNUAL TOTAL F&B

Sales Manager 1 30000 360000 360000 108000
Sales Representative 2 20000 240000 480000 144000
Total 3 840000 252000
DIRECT LABOR QUANTITY MONTHLY ANNUAL TOTAL F&B

Quality Control Head 1 30000 360000 360000 108000
Quality Control Staff 3 25000 300000 900000 270000
Total 4 1260000 378000
INDIRECT LABOR QUANTITY MONTHLY ANNUAL TOTAL F&B

Warehouse Head 1 15000 180000 180000 54000
Warehouse Assistant 3 10000 120000 360000 108000
Driver 2 7000 84000 168000 50400
Securty Guards 3 7000 84000 252000 75600
Eng'g & Maintenance
1 20000 240000 240000 72000
Head
Electrician 3 10000 120000 360000 108000
Technician 3 10000 120000 360000 108000
Delivery Men 4 7000 84000 336000 100800
Production Workers 18 10000 120000 2160000 648000
Total 38 4416000 1324800
GRAND TOTAL 57 11136000 3340800
96
Projected Salaries and Wages
PERSONNELS/YEAR Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
ADMINISTRATION 4620000 5082000 5590200 6149220 6764142 7440556 8184612 9003073 9903380 10893718
SALES LABOR 840000 924000 1016400 1118040 1229844 1352828 1488111 1636922 1800615 1980676
DIRECT LABOR 1260000 1386000 1524600 1677060 1844766 2029243 2232167 2455384 2700922 2971014
INDIRECT LABOR 4416000 4857600 5343360 5877696 6465466 7112012 7823213 8605535 9466088 10412697
GRAND TOTAL 11136000 12249600 13474560 14822016 16304218 17934639 19728103 21700914 23871005 26258105
Projected Fringe and Benefits
PERSONNELS/YEAR Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
ADMINISTRATION 1386000 1524600 1677060 1844766 2029243 2232167 2455384 2700922 2971014 3268115
SALES LABOR 252000 277200 304920 335412 368953 405849 446433 491077 540184 594203
DIRECT LABOR 378000 415800 457380 503118 553430 608773 669650 736615 810277 891304
INDIRECT LABOR 1324800 1457280 1603008 1763309 1939640 2133604 2346964 2581660 2839826 3123809
GRAND TOTAL 3340800 3674880 4042368 4446605 4891265 5380392 5918431 6510274 7161301 7877432
97
Breakdown of Pre-Operating Expenses
2003 2004 2005
LABOR MONTHLY
QTY TOTAL QTY TOTAL QTY TOTAL
General Manager(10) 100000 1 1000000 1 1200000 1 1200000
Secretary(4) 20000 2 160000 2 480000 2 480000
HRD Manager(3) 30000 1 90000 1 360000 1 360000
Finance Manager(8) 30000 1 240000 1 360000 1 360000
Production Manager(8) 30000 1 240000 1 360000 1 360000
Guard(9) 7000 2 126000 2 168000 3 252000
Chief Accountant(6) 30000 1 180000 1 360000 1 360000
Maintenance & Eng'g Head(1) 20000 1 20000 1 240000 1 240000
Technician(10) 10000 - - 3 300000 3 300000
Electrician(11) 10000 - - 3 360000 3 360000
Accounting Clerk(5) 20000 - - - - 1 100000
Quality Control Head(1) 30000 - - - 1 30000
Sales Manager(2) 30000 - - - - 1 60000
Purchasing Supervisor(6) 30000 - - - - 1 180000
Shift Supervisor(1) 25000 - - - - 3 75000
Quality Control Staff(1) 25000 - - - - 3 75000
Sales Representatives(1) 20000 - - - - 2 40000
Warehouse Head(1) 15000 - - - - 1 15000
Warehouse Assistant(1) 10000 - - - - 3 30000
Driver(1) 7000 - - - - 2 14000
Delivery Men(1) 7000 - - - - 4 28000
Production Workers(1) 10000 - - - - 18 180000
TOTAL 516000 9 2056000 16 4188000 57 5099000
98
Quantitative Inventory of Raw Materials
a) For Na2CO3 (Purity = 96%)

2005 0 528966 88161 440805 9.06 0 4792432 798739 3993693
2006 440805 5355781 5333741 462845 9.67 3993693 51790402 51308384 4475711
2007 462845 5623570 5600428 485988 10.32 4475711 58035242 57495568 5015396
2008 485988 5904749 5880449 510287 11.01 5015396 65011286 64408412 5618260
2009 510287 6199986 6174472 535801 11.74 5618260 72787836 72115792 6290304
2010 535801 6509986 6483196 562591 12.49 6290304 81309725 80573267 7026762
2011 562591 6835485 6807355 590721 13.30 7026762 90911951 90082123 7856589
2012 590721 7177259 7147723 620257 14.14 7856589 101486442 100572598 8770434
2013 620257 7536122 7505109 651270 15.02 8770434 113192552 112180911 9782075
2014 651270 7912928 7880365 683833 15.93 9782075 126052943 124941559 10893460
2015 683833 8308575 8274383 718025 16.88 10893460 140248746 139021944 12120262
99
b) For H3PO4 (Purity = 98%)
2005 0 565270 95801 469469 15.96 0 9021709 1528984 7492725
2006 469469 5704045 5680572 492942 17.11 7492725 97596210 96654698 8434238
2007 492942 5989248 5964601 517589 18.44 8434238 110441733 109331630 9544341
2008 517589 6288710 6262831 543469 19.96 9544341 125522652 124219371 10847641
2009 543469 6603146 6575972 570642 21.67 10847641 143090174 141571981 12365812
2010 570642 6933303 6904771 599174 23.57 12365812 163417952 161661233 14122531
2011 599174 7279968 7250009 629133 25.65 14122531 186731179 184716449 16137261
2012 629133 7643966 7612510 660590 27.92 16137261 213419531 211113147 18443673
2013 660590 8026165 7993135 693619 30.38 18443673 243834893 241206390 21072145
2014 693619 8427473 8392792 728300 32.20 21072145 271364631 268985516 23451260
2015 728300 8848846 8812432 764715 34.13 23451260 302011114 299362685 26099723
Quantitative Projection of Production and Finished Goods and Goods Sold
100
Year Production Production Beginning Ending Sales Volume Selling Price Total Sales (PhP)
Volume (in Volume (in Inventory (in Inventory (in (in sack) (PhP/kg)
kg) sack) sack) sack)
2006 7103416 157854 0 7893 149961 33.17 223,839,287
2007 7458587 165746 7893 8682 164957 35.23 261,514,580
2008 7831516 174034 8682 9136 173580 37.44 292,447,584
2009 8223092 182735 9136 9594 182277 39.80 326,458,107
2010 8634247 191872 9594 10073 191392 42.31 364,400,798
2011 9065959 201466 10073 10577 200962 44.97 406,676,751
2012 9519257 211539 10577 11106 211010 47.78 453,692,601
2013 9995220 222116 11106 11661 221561 50.73 505,790,529
2014 10494981 233222 11661 12244 232639 53.84 563,637,769
2015 11019730 244883 12244 12856 244271 57.09 627,544,413
Assumptions:
Production increases 5% every year
95% of the production volume and beginning inventory (in sack) are sold
Schedule of Raw Materials
2006
Raw Materials Usage/yr(kg) Usage/yr(PhP) Purchase(kg) Purchase(PhP) Beginning Inventory Ending Inventory
Na2CO3 5,333,741 51,308,384 5,355,781 51,790,402 3,993,693 4,475,711
101
H3PO4 5,680,572 96,654,698 5,704,045 97,596,210 7,492,725 8,434,238
2007
Na2CO3 5,600,428 57,495,568 5,623,570 58,035,242 4,475,711 5,015,396
H3PO4 5,964,601 109,331,630 5,989,248 110,441,733 8,434,238 9,544,341
2008
Na2CO3 5,880,449 64,408,412 5,904,749 65,011,286 5,015,396 5,618,260
H3PO4 6,262,831 124,219,371 6,288,710 125,522,652 9,544,341 10,847,641
2009
Na2CO3 6,174,472 72,115,792 6,199,986 72,787,836 5,618,260 6,290,304
H3PO4 6,575,972 141,571,981 6,603,146 143,090,174 10,847,641 12,365,812
2010
Na2CO3 6,483,196 80,573,267 6,509,986 81,309,725 6,290,304 7,026,762
H3PO4 6,904,771 161,661,233 6,933,303 163,417,952 12,365,812 14,122,531
2011
Na2CO3 6,807,355 90,082,123 6,835,485 90,911,951 7,026,762 7,856,589
H3PO4 7,250,009 184,716,449 7,279,968 186,731,179 14,122,531 16,137,261
102
2012
Na2CO3 7,147,723 100,572,598 7,177,259 101,486,442 7,856,589 8,770,434
H3PO4 7,612,510 211,113,147 7,643,966 213,419,531 16,137,261 18,443,673
2013
Na2CO3 7,505,109 112,180,911 7,536,122 113,192,552 8,770,434 9,782,075
H3PO4 7,993,135 241,206,390 8,026,165 243,834,893 18,443,673 21,072,145
2014
Na2CO3 7,880,365 124,941,559 7,912,928 126,052,943 9,782,075 10,893,460
H3PO4 8,392,792 268,985,516 8,427,473 271,364,631 21,072,145 23,451,260
2015
Na2CO3 8,274,383 139,021,944 8,308,575 140,248,746 10,893,460 12,120,262
H3PO4 8,812,432 299,362,685 8,848,846 302,011,114 23,451,260 26,099,723
103
Quantitative Projection of Energy Required
Total Energy Total Energy

Energy Consumption Energy Consumption Rate
Year Consumption Consumption (in
(variable; in kWh) (fixed; in kWh) (in PhP)
(in KWh) PhP)
2006 429495 14911 444406 5.50 2,444,234
2007 468540 16266 484807 5.61 2,719,766
2008 507585 17622 525207 5.72 3,004,186
2009 546631 18977 565608 5.84 3,303,150
2010 585676 20333 606009 5.95 3,605,751
2011 624721 21689 646409 6.07 3,923,703
2012 663766 23044 686810 6.19 4,251,352
2013 702811 24400 727210 6.32 4,595,969
2014 741856 25755 767611 6.44 4,943,414
2015 780901 27111 808011 6.57 5,308,635
104
ORGANIZATIONAL AND PRE-OPERATING
EXPENSES
Organizational Expenses Cost

Payment of Fees with SEC, BOI, DTI, DENR, and
1,800,000
Mayor's Permit
Cost of Issuing Shares 850,000
Interim Interest 17,212,500
Setting up a Sales Network 500,000
Initial Advertising 400,000
Personnel Recruitment and Training 300,000
TOTAL 21,062,500
Pre-Operating Expenses Cost

Initial Expenses before Construction
Initial Investigation 20,000
Research and Technical Studies 120,000
Economic and Marketing Studies 100,000
Financial and Profitability Studies 200,000
Design Studies 250,000
Consulting Engineers 150,000
During Construction
Utilities 3,622,153
Administration and Office Personnel 11,343,000
Purchase of Raw Materials 13,814,141
Office Rental 50,000
TOTAL 29,669,294
TOTAL ORGANIZATIONAL AND PRE-OPERATING EXPENSES 50,731,794
105
MACHINERY AND EQUIPMENT
Useful Depreciation
PLANT EQUPMENT Unit Unit Price Factor Total Price
Life Per Year
Bucket Elevator 2 100,000 2.2 440,000 25 17,600
Bunker 1 500,000 2.2 1,100,000 25 44,000
Mixer 1 950,000 2.2 2,090,000 25 83,600
Reactor 1 1,026,000 2.2 2,257,200 25 90,288
CO2 Separator 1 300,000 1.4 420,000 25 16,800
Filter Press 1 280,800 2.2 617,760 25 24,710
Ortho Tank 1 250,000 1.4 350,000 25 14,000
Spray Dryer 1 1,447,200 3.0 4,341,600 25 173,664
Cyclone 1 410,400 2.2 902,880 25 36,115
Hammer Mill 1 437,000 2.2 961,400 25 38,456
Boiler 1 500,000 3.0 1,500,000 30 50,000
H3PO4 Tank 1 300,000 1.4 420,000 25 16,800
Water Tank 1 250,000 1.4 350,000 25 14,000
Packaging Equipment 1 150,000 2.2 330,000 25 13,200
TOTAL 16,080,840 633,234
AUXILLARY Useful Depreciation

Unit Unit Price Factor Total Price
EQUIPMENT Life Per Year
Fire Extinguisher 50 850 1 42,500 3 14,167
Alarm System 10 1,250 1 12,500 10 1,250
Exhaust Fan 16 1,000 1 16,000 10 1,600
Pumps 5 30,000 1 150,000 10 15,000
Process Protective Gear 10 1,100 1 11,000 10 1,100
Weighing Scale 1 105,000 1 105,000 10 10,500
TOTAL 337,000 43,617
106
Total Useful DepreciationP
LABORATORY EQUIPMENT Unit Unit Price Factor
Price Life er Year
Analytical Balance 1 50,000 1 50,000 10 5,000
Fume Hood 1 55,000 1 55,000 10 5,500
Goggles, Apron, Protective
5 5,000 1 25,000 10 2,500
Mask(set)
Laboratory Glasswares (set) 1 15,000 1 15,000 10 1,500
Refrigerators 1 10,000 1 10,000 10 1,000
TOTAL 155,000 15,500
TRANSPORTATION Total Useful Depreciation

Unit Unit Price Factor
EQUIPMENT Price Life Per Year
Forklift 2 800,000 1 1,600,000 15 106,667
TOTAL 1,600,000 106,667
TOTAL MACHINERIES and

18,172,840 799,017
EQUIPMENTS (PhP)
GENERAL AND ADMINISTRATIVE EQUIPMENTS
OFFICE EQUIPMENT AND FURNITURES

TOTAL 865,300 86,530
TRANSPORTATION Total Useful DepreciationP

Unit Unit Price Factor
EQUIPMENT Price Life er Year
Service Cars 2 385,000 1 770,000 15 51,333
TOTAL GENERAL AND ADMINISTRATIVE

1,635,300 137,863
EQUIPMENTS
SELLING EQUIPMENT
Delivery Truck 2 800,000 1 1,600,000 15 106,667
TOTAL SELLING
1,600,000 106,667
EQUIPMENT
107
OFFICE EQUIPMENT and FURNITURES
Office Equipment Quantity Unit Price Total Price Useful Life Depreciation
Airconditioning Unit 8 17,500.00 140,000.00 10 14,000.00

Bundy Clock 1 8,000.00 8,000.00 10 800.00
Calculators 10 500.00 5,000.00 10 500.00
Clerical Chairs 8 750.00 6,000.00 10 600.00
Clerical Tables 8 1,000.00 8,000.00 10 800.00
Computer 8 45,000.00 360,000.00 10 36,000.00
Conference Chairs 12 1,250.00 15,000.00 10 1,500.00
Conference Tables 2 12,500.00 25,000.00 10 2,500.00
Executive Chairs 6 1,750.00 10,500.00 10 1,050.00
Executive Tables 6 7,500.00 45,000.00 10 4,500.00
Fax Machine 2 13,500.00 27,000.00 10 2,700.00
File Cabinet 5 2,000.00 10,000.00 10 1,000.00
Overhead Projector 2 22,000.00 44,000.00 10 4,400.00
Photocopy Machine 1 22,000.00 22,000.00 10 2,200.00
Printer 4 4,500.00 18,000.00 10 1,800.00
Television 1 15,000.00 15,000.00 10 1,500.00
Telephones 10 8,500.00 85,000.00 10 8,500.00
Two Way Radios 4 3,575.00 14,300.00 10 1,430.00
VHS 1 6,500.00 6,500.00 10 650.00
Wall Clock 8 125.00 1,000.00 10 100.00
Total 865,300.00 86,530.00
108
OFFICE SUPPLIES COST
Office Supplies Unit Unit Price Quantity Amount/Year
Ballpen pc. 3.50 200 700.00
Bond Paper, short ream 72.00 50 3,600.00
Bond Paper, long ream 111.00 40 4,440.00
Perforated Computer Paper box 690.00 10 6,900.00
Cork Board pc. 75.00 7 525.00
Carbon Paper box 71.00 5 355.00
Diskette, 3.5" MF 2-HD box 120.00 50 6,000.00
Envelope, brown (short) pc. 2.20 200 440.00
Envelope, brown (long) pc. 2.50 250 625.00
Eraser pc. 17.00 20 340.00
Folder, short pc. 2.00 200 400.00
Folder, long pc. 2.30 250 575.00
Glue, O-glue pen pc. 8.00 20 160.00
Liquid Paper pc. 20.00 20 400.00
Marking pen, black pc. 20.00 30 600.00
Marking pen, red pc. 20.00 20 400.00
Masking Tape pc. 15.00 35 525.00
Paper Clips box 7.50 20 150.00
Pencil, Mongol # 2 box 46.50 20 930.00
Puncher pc. 85.00 5 425.00
Push Pins box 25.00 20 500.00
Scotch Tapes pc. 20.00 30 600.00
Sharpener pc. 150.00 5 750.00
Stamp Pad pc. 40.00 10 400.00
Stamp Pad Ink pc. 20.00 14 280.00
Stapler pc. 75.00 7 525.00
Staple Wire box 13.00 35 455.00
Staple Wire Remover pc. 16.00 4 64.00
Scissors, 6" pc. 18.00 5 90.00
Record book (300 pages) pc. 37.00 15 555.00
Record book (150 pages) pc. 21.00 15 315.00
Tape Dispenser pc. 45.00 7 315.00
White Boardmarker pc. 28.00 20 560.00
Total 33,899.00
109
ELECTRICITY CONSUMPTION FOR 2015
Office Equipment Quantity KwH Price/KwH No. of Hours No. of Days Monthly Amount
Airconditioning Unit 8 12.00 6.57 8 22 264 1,734
Bundy Clock 1 2.18 6.57 24 30 65 430
Computer 8 6.50 6.57 8 22 143 940
Fax Machine 2 2.18 6.57 24 30 65 430
Overhead Projector 2 1.60 6.57 8 22 35 231
Photocopy Machine 1 8.25 6.57 8 22 182 1,192
Printer 4 1.60 6.57 8 22 35 231
Television 1 1.60 6.57 8 22 35 231
VHS 1 1.60 6.57 8 22 35 231
TOTAL 860 5,651
Buildings Area KwH Price/KwH No. of Hours No. of Days Monthly Amount
Administration Building 360 4.32 6.57 8 22 95 624
Production Plant 1,000 12.00 6.57 24 30 264 1,734
Warehouse 800 9.60 6.57 24 30 211 1,388
Generator House 37.5 0.45 6.57 24 30 10 65
Boiler House 37.5 0.45 6.57 24 30 10 65
Laboratory 64 0.77 6.57 8 30 17 111
Canteen 56 0.67 6.57 24 30 15 97
Total 622 4,085
110
Plant Equipments Unit KwH Price/KwH No. of Hours No. of Days Monthly Amount
Bucket Elevator 2 107 6.57 24 30 3,222 21,167
Bunker 1 54 6.57 24 30 1,611 10,584
Mixer 1 89 6.57 24 30 2,685 17,639
Filter Press 1 179 6.57 24 30 5,370 35,279
Spray Dryer 1 1,328 6.57 24 30 39,838 261,733
Hammer Mill 1 54 6.57 24 30 1,611 10,584
Boiler 1 358 6.57 24 30 10,739 70,557
Total 65,075 427,543
Laboratory Equipments Unit KwH Price/KwH No. of Hours No. of Days Monthly Amount
Analytical Balance 1 0.10 6.57 8 26 2.60 17
Fume Hood 1 11.90 6.57 8 26 309.40 2,033
Refrigerators 1 17.90 6.57 24 26 465.40 3,058
Total 777 5,108
TOTAL MONTHLY CONSUMPTION 67,334 442,386
TOTAL ELECTRICITY CONSUMPTION For 2015 808,011 5,308,635
111
FUEL CONSUMPTION
Equipment Volume/day (liters) Price/Liter Amount/day (PhP)

Boiler 350 21.00 7,350
Delivery Trucks 72 21.00 1,512
Service Cars 40 21.00 840
TOTAL 462 63.00 9,702
WATER CONSUMPTION
3 3
Volume/month (m ) Price/m Amount/month (PhP)
Process 212 9.50 2,010
Others 410 9.50 3,895
TOTAL 622 5,905
112
113
UTILITIES
WATER CONSUMPTION FUEL CONSUMPTION ELECTRICITY CONSUMPTION
YEAR COST/M3 WATER (M3) COST/YR. YEAR COST/L L/YR. COST/YR. YEAR COST/kW kW/YR. COST/YR.
2006 9.50 7,459 70,861 2006 21.00 167,706 3,521,826 2006 5.50 444,406 2,444,234
2007 9.69 7,832 75,892 2007 21.42 176,091 3,771,876 2007 5.61 484,807 2,719,766
2008 9.88 8,224 81,280 2008 21.85 184,896 4,039,679 2008 5.72 525,207 3,004,186
2009 10.08 8,635 87,051 2009 22.29 194,141 4,326,496 2009 5.84 565,608 3,303,150
2010 10.28 9,067 93,232 2010 22.73 203,848 4,633,677 2010 5.95 606,009 3,605,751
2011 10.49 9,520 99,851 2011 23.19 214,040 4,962,668 2011 6.07 646,409 3,923,703
2012 10.70 9,996 106,941 2012 23.65 224,742 5,315,018 2012 6.19 686,810 4,251,352
2013 10.91 10,496 114,534 2013 24.12 235,979 5,692,384 2013 6.32 727,210 4,595,969
2014 11.13 11,020 122,665 2014 24.60 247,778 6,096,543 2014 6.44 767,611 4,943,414
2015 11.35 11,571 131,375 2015 25.10 260,167 6,529,398 2015 6.57 808,011 5,308,635
114
FIXED CAPITAL INVESTMENT
2 2
LAND COST Area(m ) Cost/m
Land Area 4,200 4,000
Total Land Area Cost 16,800,000
Land Development Cost/m2 Amount(PhP)

Roads & Drainage 770 550,000
Gate and Fence 200,000
Total Land Development 750,000
TOTAL LAND COST (in PhP) 17,550,000
2
BUILDING COST Area(m ) Price Total
Administration Building 360 15,000 5,400,000
Production Plant 1,000 10,000 10,000,000
Warehouse 800 10,000 8,000,000
Generator House 37.5 8,000 300,000
Boiler House 37.5 8,000 300,000
Laboratory 64 10,000 640,000
Canteen 56 8,000 448,000
TOTAL BUILDING COST (in PhP) 2,355 25,088,000
EQUIPMENT COST Amount

Plant Equipment 15,750,840
Laboratory Equipment 155,000
Auxiliaries 337,000
Transportation Equipment 3,970,000
Office Equipment and Furniture 865,300
TOTAL EQUIPMENT COST (in PhP) 21,078,140
TOTAL FIXED CAPITAL INVESTMENT (in PhP) 63,716,140
115
TOTAL PROJECT COST
Fixed Capital Investment Cost
Land Cost 17,550,000
Building Cost 25,088,000
Equipment and Machinery Cost 21,078,140
TOTAL 63,716,140
Organizational and Pre-Operating Expenses Cost

Organizational Expenses 21,062,500
Pre-Operating Expenses 29,669,294
TOTAL 50,731,794
Working Capital Cost

Working Capital @ 3 months of Operating Expenses and
48,834,520
Cost of Sales
TOTAL PROJECT COST 163,282,454
116
INVESTMENT SOURCE
Total Project Cost PhP 163,282,454
Equity Amount
Preferred Stock 21,250,000
Common Stock 63,750,000
TOTAL 85,000,000
Loan Amount
Loan from Bank 78,282,454
Assumptions:
Percentage Project Cost due to Equity 52%
Percentage Project Cost due to Loan 48%
Percentage Equity due to Preferred Stocks 25%
Percentage Equity due to Common Stocks 75%
117
SCHEDULE OF AMORTIZATION
Project Cost (PhP) 163,282,454 %PC due to Equity 0.52

Equity (PhP) 85,000,000 %PC due to Loan 0.48
Loan (PhP) 78,282,454
Development Bank of the Philippines

Interest 13.50%
Periods to Pay 10 years
P/A,13.5%,10 5.32
Outstanding
Period Interest Payment Principal Repaid Balance
Principal
2006 78,282,454 10,568,131 14,716,082 4,147,950 74,134,503
2007 74,134,503 10,008,158 14,716,082 4,707,924 69,426,580
2008 69,426,580 9,372,588 14,716,082 5,343,493 64,083,086
2009 64,083,086 8,651,217 14,716,082 6,064,865 58,018,222
2010 58,018,222 7,832,460 14,716,082 6,883,622 51,134,600
2011 51,134,600 6,903,171 14,716,082 7,812,911 43,321,689
2012 43,321,689 5,848,428 14,716,082 8,867,653 34,454,036
2013 34,454,036 4,651,295 14,716,082 10,064,787 24,389,249
2014 24,389,249 3,292,549 14,716,082 11,423,533 12,965,716
2015 12,965,716 1,750,372 14,716,082 12,965,710 0
118
COST OF SALES
COST OF SALES 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Direct Raw Materials
Na2CO3 51,308,384 57,495,568 64,408,412 72,115,792 80,573,267 90,082,123 100,572,598 112,180,911 124,941,559 139,021,944
H3PO4 96,654,698 109,331,630 124,219,371 141,571,981 161,661,233 184,716,449 211,113,147 241,206,390 268,985,516 299,362,685
Total Direct Raw Materials 147,963,082 166,827,197 188,627,783 213,687,773 242,234,500 274,798,572 311,685,745 353,387,301 393,927,075 438,384,629
Packaging Cost 4,498,830 5,097,171 5,525,051 5,975,040 6,463,308 6,989,458 7,558,378 8,175,601 8,840,282 9,560,767
Direct Labor
Fringe Benefits 378,000 415,800 457,380 503,118 553,430 608,773 669,650 736,615 810,277 891,304
Total Direct Labor 1,638,000 1,801,800 1,981,980 2,180,178 2,398,196 2,638,015 2,901,817 3,191,999 3,511,198 3,862,318
Manufacturing Overhead
Indirect Labor 4,416,000 4,857,600 5,343,360 5,877,696 6,465,466 7,112,012 7,823,213 8,605,535 9,466,088 10,412,697
Fringe Benefits 1,324,800 1,457,280 1,603,008 1,763,309 1,939,640 2,133,604 2,346,964 2,581,660 2,839,826 3,123,809
Utilities
Electricity 2,444,234 2,719,766 3,004,186 3,303,150 3,605,751 3,923,703 4,251,352 4,595,969 4,943,414 5,308,635
Water 70,861 75,892 81,280 87,051 93,232 99,851 106,941 114,534 122,665 131,375
Fuel 3,521,826 3,771,876 4,039,679 4,326,496 4,633,677 4,962,668 5,315,018 5,692,384 6,096,543 6,529,398
Total Utilities 6,036,921 6,567,534 7,125,145 7,716,698 8,332,660 8,986,223 9,673,310 10,402,886 11,162,622 11,969,407
Waste Treatment 300,000 315,000 330,750 347,288 364,652 382,884 402,029 422,130 443,237 465,398
Repairs and Maintenance 145,383 152,652 160,284 168,299 176,714 185,549 194,827 204,568 214,796 225,536
Insurance Expenses 955,742 953,551 953,551 953,551 953,551 953,551 953,551 953,551 953,551 953,551
Normal Depreciation
Machinery and Equipment 799,017 799,017 799,017 799,017 799,017 799,017 799,017 799,017 799,017 799,017
Building 501,760 501,760 501,760 501,760 501,760 501,760 501,760 501,760 501,760 501,760
119
Total Normal Depreciation 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777 1,300,777
Taxes and Licenses 426,380 426,380 426,380 426,380 426,380 426,380 426,380 426,380 426,380 426,380
Total Manufacturing Overhead 14,906,003 16,030,773 17,243,255 18,553,996 19,959,838 21,480,980 23,121,051 24,897,487 26,807,278 28,877,556
Total Manufacturing Cost 169,005,915 189,756,942 213,378,070 240,396,987 271,055,842 305,907,025 345,266,991 389,652,388 433,085,833 480,685,270
Finished Goods
Inventory,Beginning - 8,450,296 9,487,847 10,668,904 12,019,849 13,552,792 15,295,351 17,263,350 19,482,619 21,654,292
Inventory,End 8,450,296 9,487,847 10,668,904 12,019,849 13,552,792 15,295,351 17,263,350 19,482,619 21,654,292 24,034,263
COST OF SALES 160,555,619 180,269,095 202,709,167 228,377,138 257,503,050 290,611,674 328,003,641 370,169,768 411,431,541 456,651,006
Percentage Increase in Direct and Indirect Labor 0.10

Percentage of Direct and Indirect Labor due to Fringe Benefits 0.30
Percentage of Equipment Cost due to Repairs and Maintenance 0.008
Percentage Increase in Repairs and Maintenance 0.05
Percentage of Fixed Capital Investment due to Insurance Expense 0.015
Percentage of Total Land and Building Cost Due to Taxes and Licenses 0.010
120
OPERATING EXPENSES
Selling Expenses 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Salaries and Wages 840,000 924,000 1,016,400 1,118,040 1,229,844 1,352,828 1,488,111 1,636,922 1,800,615 1,980,676
Fringe Benefits 252,000 277,200 304,920 335,412 368,953 405,849 446,433 491,077 540,184 594,203
Sales Tax 6,715,179 7,845,437 8,773,428 9,793,743 10,932,024 12,200,303 13,610,778 15,173,716 16,909,133 18,826,332
Sales Commission 223,839 261,515 292,448 326,458 364,401 406,677 453,693 505,791 563,638 627,544
Advertising and Promotions 2,238,393 2,260,777 2,283,385 2,306,218 2,329,281 2,352,573 2,376,099 2,399,860 2,423,859 2,448,097
Miscellaneous Expenses 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Delivery Expenses 11,191,964 13,075,729 14,622,379 16,322,905 18,220,040 20,333,838 22,684,630 25,289,526 28,181,888 31,377,221
Total 21,593,042 24,776,325 27,424,626 30,334,444 33,576,209 37,183,734 41,191,411 45,628,559 50,550,984 55,985,741
General And Administrative

Expenses
Fringe Benefits 1,386,000 1,524,600 1,677,060 1,844,766 2,029,243 2,232,167 2,455,384 2,700,922 2,971,014 3,268,115
Amortization of Pre-
5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179
Operating Expenses
Office Supplies 33,899 34,916 35,963 37,042 38,154 39,298 40,477 41,691 42,942 44,231
Total 11,250,942 11,852,559 12,514,266 13,242,071 14,042,581 14,923,064 15,891,515 16,956,729 18,128,379 19,417,107
Total Operating Expenses 32,843,983 36,628,883 39,938,892 43,576,515 47,618,790 52,106,798 57,082,927 62,585,288 68,679,363 75,402,848
121
Assumptions:
Percentage of increase of wages and salaries 10%

Percentage of wages and salaries due to fringe benefits 30%
Percentage of sales due to sales tax 3%
Percentage of sales due advertising and promotions 1%
Percentage of total sales due to delivery expense 5%
Percentage increase of office supplies 3%
Percentage of amortization due to pre-operating expense 10%
122
INCOME STATEMENT
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
SALES 223,839,287 261,514,580 292,447,584 326,458,107 364,400,798 406,676,751 453,692,601 505,790,529 563,637,769 627,544,413
Cost of Sales 160,555,619 180,269,095 202,709,167 228,377,138 257,503,050 290,611,674 328,003,641 370,169,768 411,431,541 456,651,006
Gross Profit on Sales 63,283,667 81,245,485 89,738,417 98,080,969 106,897,749 116,065,077 125,688,960 135,620,761 152,206,228 170,893,406
Operating Expenses 32,843,983 36,628,883 39,938,892 43,576,515 47,618,790 52,106,798 57,082,927 62,585,288 68,679,363 75,402,848
Net profit (loss) on

30,439,684 44,616,602 49,799,525 54,504,454 59,278,958 63,958,279 68,606,033 73,035,473 83,526,865 95,490,559
Operations
Less: Financial
charges
Local 10,568,131 10,008,158 9,372,588 8,651,217 7,832,460 6,903,171 5,848,428 4,651,295 3,292,549 1,750,372
Net Profit before

19,871,553 34,608,444 40,426,937 45,853,237 51,446,498 57,055,108 62,757,605 68,384,178 80,234,316 93,740,187
Income Tax
Provision for Income
6,358,897 11,074,702 12,936,620 14,673,036 16,462,880 18,257,635 20,082,434 21,882,937 25,674,981 29,996,860
Tax
Net Profit after Tax 13,512,656 23,533,742 27,490,317 31,180,201 34,983,619 38,797,473 42,675,171 46,501,241 54,559,335 63,743,327
Percentage of Income Tax = 32%
123
PROJECTED CASH FLOW STATEMENT
- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
ESTIMATED CASH RECEIPTS
From Operations:
Net profit after interest and tax - 13,512,656 23,533,742 27,490,317 31,180,201 34,983,619 38,797,473 42,675,171 46,501,241 54,559,335 63,743,327
Add back:
Increase (decrease) in current
- 18,309,826 6,243,034 3,626,475 3,763,942 4,097,817 4,427,991 4,805,827 5,170,221 7,023,255 7,909,262
Liabilities
Amortization of pre-operating
- 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179 5,073,179
Expenses
Depreciation - 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547 1,043,547
Decrease (increase) in non-cash
- 13,447,490 2,401,786 1,749,533 1,881,573 2,075,181 2,280,077 2,509,010 2,746,990 3,308,952 3,617,238
current assets
Total cash receipts from operations - 24,491,718 33,491,716 35,483,986 39,179,296 43,122,981 47,062,114 51,088,714 55,041,198 64,390,364 74,152,077
From Other Sources:
Increase in capital stock
Preferred 21,250,000
Common 63,750,000
Total 85,000,000
Increase (decrease) in long-term loans
Local 78,282,454
Total 78,282,454
Total cash receipts from other sources 163,282,454
TOTAL ESTIMATED CASH RECEIPTS 163,282,454 24,491,718 33,491,716 35,483,986 39,179,296 43,122,981 47,062,114 51,088,714 55,041,198 64,390,364 74,152,077
124
ESTIMATED CASH
DISBURSEMENTS
Capital expenditures
Land and improvements 17,550,000
Building 25,088,000
Machinery and Equipment 21,078,140
Organizational and pre-
50,731,794
Operating
Total 114,447,934
Other Disbursements
Amortization of long-term
Liabilities
Local - 4,147,950 4,707,924 5,343,493 6,064,865 6,883,622 7,812,911 8,867,653 10,064,787 11,423,533 12,965,710
Total - 4,147,950 4,707,924 5,343,493 6,064,865 6,883,622 7,812,911 8,867,653 10,064,787 11,423,533 12,965,710
TOTAL ESTIMATED CASH
114,447,934 4,147,950 4,707,924 5,343,493 6,064,865 6,883,622 7,812,911 8,867,653 10,064,787 11,423,533 12,965,710
DISBURSEMENTS
NET CASH INFLOW

48,834,520 20,343,768 28,783,792 30,140,492 33,114,432 36,239,359 39,249,203 42,221,061 44,976,411 52,966,831 61,186,367
(OUTFLOW)
CASH BALANCE, BEGINNING - 48,834,520 69,178,287 97,962,080 128,102,572 161,217,004 197,456,363 236,705,566 278,926,627 323,903,038 376,869,869
CASH BALANCE, END 48,834,520 69,178,287 97,962,080 128,102,572 161,217,004 197,456,363 236,705,566 278,926,627 323,903,038 376,869,869 438,056,236
125
BALANCE SHEET STATEMENT
ASSETS - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
CURRENT ASSETS
Cash 48,834,520 69,178,287 97,962,080 128,102,572 161,217,004 197,456,363 236,705,566 278,926,627 323,903,038 376,869,869 438,056,236
Accounts Receivables 0 17,907,143 20,921,166 23,395,807 26,116,649 29,152,064 32,534,140 36,295,408 40,463,242 45,091,022 50,203,553
Inventories
Finished goods 0 8,450,296 9,487,847 10,668,904 12,019,849 13,552,792 15,295,351 17,263,350 19,482,619 21,654,292 24,034,263
Raw Material 11,486,419 12,909,949 14,559,737 16,465,901 18,656,116 21,149,293 23,993,851 27,214,107 30,854,221 34,344,720 38,219,985
Total Non-cash Current Assets 11,486,419 13,447,490 15,849,276 17,598,809 19,480,382 21,555,563 23,835,641 26,344,651 29,091,641 32,400,593 36,017,832
Total Current Assets 48,834,520 82,625,777 113,811,356 145,701,381 180,697,386 219,011,926 260,541,207 305,271,278 352,994,679 409,270,462 474,074,068
Property, Plant and Equipment

Land and improvements 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000 17,550,000
Buildings 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000 25,088,000
Machinery and Equipment 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140 21,078,140
Less: Accumulated
0 1,043,547 2,087,094 3,130,641 4,174,188 5,217,735 6,261,282 7,304,829 8,348,375 9,391,922 10,435,469
Depreciation
Total Net Property, Plant and
63,716,140 62,672,593 61,629,046 60,585,499 59,541,952 58,498,405 57,454,858 56,411,311 55,367,765 54,324,218 53,280,671
Equipment
Pre-Operating Expenses 50,731,794 45,658,615 40,585,435 35,512,256 30,439,076 25,365,897 20,292,718 15,219,538 10,146,359 5,073,179 0
TOTAL ASSETS 163,282,454 190,956,985 216,025,837 241,799,136 270,678,414 302,876,229 338,288,783 376,902,127 418,508,803 468,667,859 527,354,738
LIABILITIES AND
- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
STOCKHOLDERS EQUITY
Current Liabilities
Accounts payable 0 11,950,929 13,478,158 15,242,715 17,270,241 19,578,214 22,211,450 25,192,478 28,562,196 31,793,406 35,380,789
126
Income tax payable 0 6,358,897 11,074,702 12,936,620 14,673,036 16,462,880 18,257,635 20,082,434 21,882,937 25,674,981 29,996,860
Total 0 18,309,826 24,552,860 28,179,335 31,943,277 36,041,094 40,469,085 45,274,911 50,445,132 57,468,387 65,377,649
Long-term liabilities
Local Bank 78,282,454 74,134,503 69,426,580 64,083,086 58,018,222 51,134,600 43,321,689 34,454,036 24,389,249 12,965,716 0
TOTAL LIABILITIES 78,282,454 92,444,329 93,979,440 92,262,421 89,961,498 87,175,694 83,790,774 79,728,947 74,834,382 70,434,103 65,377,649
Stockholders Equity
Capital stock
Preferred stock 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000 21,250,000
Common stock 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000 63,750,000
Total 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000 85,000,000
Retained earnings
Balance, beginning 0 0 13,512,656 37,046,398 64,536,715 95,716,916 130,700,535 169,498,009 212,173,180 258,674,421 313,233,756
Net profit (loss) 0 13,512,656 23,533,742 27,490,317 31,180,201 34,983,619 38,797,473 42,675,171 46,501,241 54,559,335 63,743,327
Balance, end 0 13,512,656 37,046,398 64,536,715 95,716,916 130,700,535 169,498,009 212,173,180 258,674,421 313,233,756 376,977,083
TOTAL STOCKHOLDERS
85,000,000 98,512,656 122,046,398 149,536,715 180,716,916 215,700,535 254,498,009 297,173,180 343,674,421 398,233,756 461,977,083
EQUITY
TOTAL LIABILITIES AND

163,282,454 190,956,985 216,025,837 241,799,136 270,678,414 302,876,229 338,288,783 376,902,127 418,508,803 468,667,859 527,354,732
STOCKHOLDERS' EQUITY
DIFFERENCE OF ASSETS
0 0 0 0 0 0 0 0 0 0 0
AND LIABILITIES
Assumptions:
Percentage of Total Sales due to Account Receivable 8%
Total Percentage of Raw Materials due to Account Payable 8%
127
FINANCIAL RATIO
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
PROFITABILITY RATIO
Return on Sales Ratio 0.06 0.09 0.09 0.10 0.10 0.10 0.09 0.09 0.10 0.10
(Net Profit/ Sales)
Return of Equity 0.16 0.24 0.23 0.21 0.19 0.18 0.17 0.16 0.16 0.16
(Net Profit/ Stockholders Equity)
Return on Capitalization Ratio 0.12 0.18 0.19 0.19 0.19 0.19 0.19 0.19 0.20 0.20
(Net Profit + Interest)/(Equity + Long-term
liabilities)
Return on Total Assets

(Profit before interest +Taxes)/Total Assets 0.14 0.21 0.22 0.22 0.22 0.22 0.22 0.22 0.23 0.23
SOLVENCY RATIO
Debt Service Covered Ratio 0.85 1.23 1.35 1.45 1.54 1.62 1.69 1.76 1.88 1.99
Funds from operation/
(repayment of long term loan + interest on long
term loan)
Debt Equity Ratio 0.94 0.77 0.62 0.50 0.40 0.33 0.27 0.22 0.18 0.14
Long term liability/ Equity
LIQUIDITY AND WORTHINESS RATIO
Current Ratio 4.51 4.64 5.17 5.66 6.08 6.44 6.74 7.00 7.12 7.25
Current assets/ Current liabilities
Acid Test Ratio 4.76 4.84 5.38 5.86 6.29 6.65 6.96 7.22 7.34 7.47
(Cash + Amount Receivable)/ Current Liability
EFFICIENCY RATIO
Days Receivable Ratio 29.04 29.04 29.04 29.04 29.04 29.04 29.04 29.04 29.04 29.04
Accounts Receivable/ Average Sales per Day
Days Inventory Turnover Ratio 21.81 22.00 21.84 21.66 21.47 21.28 21.08 20.88 20.87 20.83
Inventory/ (Sales/363)
Operation Ratio 0.15 0.14 0.14 0.13 0.13 0.13 0.13 0.12 0.12 0.12
Total Operating Expenses/ Sales
128
PAYBACK PERIOD
1 2 3 4 5 6 7 8 9 10
Equity 85,000,000 71,487,344 47,953,602 20,463,285 (10,716,916) (45,700,535) (84,498,009) (127,173,180) (173,674,421) (228,233,756)
Net Income 13,512,656 23,533,742 27,490,317 31,180,201 34,983,619 38,797,473 42,675,171 46,501,241 54,559,335 63,743,327
Difference 71,487,344 47,953,602 20,463,285 (10,716,916) (45,700,535) (84,498,009) (127,173,180) (173,674,421) (228,233,756) (291,977,083)
Payback Period = 3.67 Years
Return of Investment = 31%
129
SOCIO ECONOMIC
INFORMATIONS ABOUT LAGUNA
LAGUNA: Best of the Islands Philippines
Laguna is a quaint, rustic province south of Metro Manila. It is a place packed with history
and culture.
To get here, you can take the bus that leaves from Manila for Los Banos or Calamba. From
here, you can take a jeepney to go to the other towns.
Mt. Makiling in Los Banos is Laguna's main come-on especially for adventure seekers and
nature lovers. Its mystique originates from the many folk tales and legends woven centuries
before by the local residents. Aside from its majesticity and awesome view, it boasts of abundant
natural hot springs on its slopes that provide therapeutic benefits and are the sources of the
province's bottled water industry. You can also climb this 1144-meter volcanic mass via different
trails. If you are in San Pablo--the City of the Seven Lakes-you can also climb the 2188-meter high
Mt. Banahaw. This dormant volcano, with its springs and waterfalls, is believed to have mystical
powers. Three days are needed for the climb.
About 10 kilometers south of San Pablo is Villa Escudero-a coconut plantation- cum-resort
with a museum that has many valuable historical and cultural artifacts. Rooms and facilities are
available here. Admission fee includes a guided tour, a lunch buffet, a trip on a raft, and use of
the facilities.
If you want to experience adventure, head for the Pagsanjan Falls in Pagsanjan. The
Pagsanjan River, which flows through a lovely canyon from Magdapio Falls, will give you the thrill
of adventure as you take a boat ride down to shoot the rapids. Trips can be arranged with the
Pagsanjan Youth Hostel, Pagsanjan Falls Lodge, and Willy Flores Lodge. Organized tours from
Manila can be arranged at the various travel agencies and tourist offices.
Several resorts in Los Banos and Calamba have harnessed hot water from volcanic Mt.
Makiling and channeled it into baths and spas where people go for medicinal cures. In Los Banos,
you will find the University of the Philippines, which has a forestry institute with botanical
gardens and a swimming pool. You will also find here the International Rice Research Institute
and the Philippine Art Center, from where you can get a good view over Laguna de Bay.
The Rizal Shrine in Calamba is yet another must-see. This place will give you a feeling of
nostalgia and a kind of historic sentiment as you go through the priceless Rizal memorabilia and
131
take a look at the replica of the house where Dr. Jose Rizal, the Philippine national hero, once
lived. The Nagcarlan Church and its centuries-old underground cemetery and the church in Liliw
that gives you good views of Laguna de Bay from its bell tower, are also some of the sights that
will provide you with the scattered pieces of Laguna's history. In Binan, you will also find many
old Spanish houses with heavy tiled roofs.
The wood carvers and papier mache makers in Paete are also significant attractions of
Laguna. They keep alive the skill and artistry of its people and preserve its traditions. Beyond
Paete is the manmade Caliraya Lake. There are a few resorts in Caliraya's fringes where you can
swim, windsurf, fish, and hike.
In the sleepy town of Pakil, you will see the pretty San Pedro de Alcantara Church, which houses
the statue of the Virgin of Turumba. You will find interesting wood carvings here. Across the
church is the house and gallery of well-known political cartoonist and artist Danilo Dalena.
Every Friday preceding Palm Sunday, the townspeople celebrate the Feast of the Virgin of
Turumba, where they do the turumba, a strange, rhythmic dance.
Central Location
The Laguna Technopark facilities in Sta. Rosa and Binan are easily accessible; only 47
kilometers from the Philippines primary international airport, 50 kilometers fro the international
seaport in Metro Manila, and 44 kilometers from Makati, the country’s premier business district.
Laguna Technopark’s location in the dynamic CALABARZON region, comprising the
among government identified priority growth centers, allows it to benefit from considerable
synergies.
132
Project Master Plan
Redefining accepted standards in industrial estate development, Laguna Technopark

constructed highway-grade concrete roads within the park, and integrated generous landscaping
and pockets of green space in its design.
Ideal for light-to-medium, non-polluting industries, Laguna Technopark is equipped with
a sewage treatment plant for domestic wastes of locators. Companies with special requirements
are required to establish their individual sewage treatment plants, to ensure the Technopark's
continued viability.
For a spacious environment, locators are mandated to observe building setbacks of 5 to
10 meters from property boundaries.
Excellent Facilities
High quality infrastructure available on site include highway-grade roads, digital

telecommunication facilities, high voltage power facilities, a centralized sewerage system and
waste water treatment facility, and an ample supply of industrial and potable water. With its
generally flat terrain, good drainage and soil stability, the Technopark offers investors ideal plant
location requirements.
Efficient support amenities that ensure high productivity and uninterrupted operations
include an administrative center, banks, government representative offices including the Bureau
of Customs and the Philippine Economic Zone Authority, medical facilities, a multi-purpose social
hall, security and fire stations and external and internal transport terminals.
133
Global Neighborhood
Progressive local and global industries engaged in a wide range of enterprises, from
automobile assembly, precision and leading edge electronics including integrated circuit assembly
and hard drive manufacturing, home appliances, pharmaceuticals to food processing have chosen
to locate their businesses at Laguna Technopark.
Here's what some locators have to say about the Binan and Sta. Rosa site:
Amkor/Anam Advanced Packaging, Inc.

Honda Cars Philippines, Inc.
NEC Computer Storage Philippines, Inc.
134
Direction to Laguna Technopark:
Direction to Laguna Technopark

1. Take South Super Highway.
2. Take the Sta. Rosa Exit.
3. Laguna Technopark is approximately 4 and a half-kilometer away.
135
PLANT LAYOUT
LEGEND:
A – Warehouse
B – Production Plant A B
C – Generator
House
D – Boiler House
E – Administration
Building
F – Guard House
E
F
136

Manufacture of Sodium Tripolyphosphate FULL

Uploaded by

Copyright:

Available Formats

You might also like

Manufacture of Sodium Tripolyphosphate FULL

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Manufacture of Sodium Tripolyphosphate FULL

Uploaded by

Copyright:

Available Formats

MAPUA INSTITUTE OF TECHNOLOGY

School of Chemical Engineering and Chemistry

In Partial Fulfillment on CHFK 583

This feasibility study is about the production of sodium tripolyposphate

This study includes an analysis of the marketing activities of STPP

In partial fulfillment of the requirements for the degree in Bachelor of

2. Cauilan, Jerick Vincent A. 1997118116

3. Cruz, Ruben Allan 1998108642

4. Membrebe, Zandrick 1998114015

ENGR. WINSTON B. FLORA ENGR. GERALDO C. TALISIC

ENGR. WINSTON B. FLORA ENGR. NILDA S. ELIQUEN

ENGR. FE G. DAMPIL ENGR. ISABELITA D. QUINTERO

ENGR. NARCISO M. MACARANAS ENGR. ARTURO L. TAPAS

On the recommendation of the panel, the School of Chemical Engineering

ENGR. LUZ LOZANO

We would like to take this opportunity to express our sincere gratitude to

Engr. Winston B. Flora, our course adviser in Plant Design 1 and 2,

Engr. Geraldo C. Talisic for being our faculty adviser.

We would like to extend our appreciation to various government agencies

Department of Science and Technology

II. Product Description

III. Market Analysis

VI. Socio-Economic 121

highly hygroscopic power and has a formula of Na5P3O10. It has an

outstanding property as a builder in laundry products. Its prime role is

that of softening agent for hard water, acting by the sequestration of

both calcium and magnesium ion to form soluble compounds. In

addition, STPP fulfills a number of other important functions. It provides

the necessary alkaline buffer capacity for the neutralization and

saponification of acid soils. It assists in the breakdown of soil particles

readily deposited on the fabric. Technically it is easy to use; it is

compatible with other detergent ingredients, and helps in the production

of crisp free-flowing powders.

Table 1: Historical Importation Price of STPP

Year Price (Php)

Figure 1. Historical Importation Price of STPP

Source: National Statistics Office

Year Projected Price

The method used in the projection of price of Na2P3O10 is Statistical

FIGURE 2. Projected Importation Price of STPP

Projected Price of STPP (Pesos)

Year Price (Php)

Figure 3. Historical Price of H3PO4

Historical Price of H3PO4

Source: National Statistics Office

The method used in the projection of price of H3PO4 is Statistical

Figure 4. Projected Price of H3PO4

Projected Price of H3PO4

Year Price (Php)

Figure 5. Historical Price of Na2CO3

Historical Price of Na2Co3

Source: National Statistics Office

The method used in the projection of price of Na2CO3 is Statistical

Figure 6. Projected Price of Na2CO3

Projected Price of Na2CO3

Year Projected Price

The method used in the projection of price of H3PO4 is Statistical Straight