Zamboanga Planned Community Builders Foundation, Inc

MODULAR HOMESPHILIPPINES

Table of Contents

Summary

2

Introduction

3

Addressing The National Housing Backlog In The Philippines

3

Definition Of Modular Home

3

Project Justification

4

Business Objectives

4

Business Strategies

4

Supplying Modular And Pre-fabricated Materials As The Primary Product

4

Integrated Delivery Of Support Services To Sell Prefabricated Housing Construction Materials

5

Establishing Tie Up With Organized Groups

5

On Line Shopping And On Site Delivery

5

Products And Services

6

Complete Units With Modular Components

6

Standardized Housing Materials For Custom Design

6

Tools And Accessories

7

Housing Construction Services

7

Supply And Management Of Goods

8

Source Of Materials

8

Marketing And Promotions Strategy

11

Initial Location

12

Schedule of Implementation

13

Organization And Management

14

Project Cost And Sales Projection

16

17

17

18

MODULAR HOMESPHILIPPINES

EXECUTIVE SUMMARY

Housing backlog in the Philippines is about 3.6 million units and is expected to increase more as population is continuously soaring. Present population of the country is 80 million people but is projected to reach the 100 million mark after ten years. To help alleviate this problem, this investment proposal is in line with building low cost but elegant and decent dwelling units for Filipinos. The Modular Homes Philippines will build a network of home construction and home improvement warehouse stores to be put up in strategic areas of the Philippines. Its main line of business is the erecting of prefabricated and modular housing units. Through its integrated services for architectural and engineering, housing loan and building permit assistance, and savings investment services, every Filipino who wants to establish a decent house for a comfortable dwelling will be given a modest option how to build a house within his means from a wide array of preferences.

The construction materials will be mainly coming from Indonesia, China and Brunei to be supplied by firms manufacturing pre-fabricated houses using wood, panelized walls, and steel materials. Materials and technology will be also coming from Canada. However, a great bulk of the materials will be coming from a wood processing plant owned by a sister corporation of Modular HomesPhilippines to be put up in ZamboangaCity. With standardized parts and a computer aided architectural design services, material cost and the perspective of the housing unit is immediately shown to clients. On-line information on architectural and cost estimate services will be also provided by Modular Homes.com web page portal. Delivery of goods in the site through internet services will be also made operational. Other materials for roofing, plumbing, toilet and bath, kitchen, electrical, lighting, painting, and other ornaments will be also displayed and sold in the warehouse store.

The initial organizational and development cost to establish the store is about 70.17 million Philippine Pesos. The cost will include detailed feasibility studies, land acquisition, warehouse store construction, management and information systems installation, and staff recruitment and initial training. The total revolving capital requirement for the store is 235.45 million Philippine Pesos, which represents 25 percent of the cost of goods sold for the first year of operation. Total investment requirement is 305,621,000 Philippine Pesos or equivalent to 5.55 million US Dollars.

The projected gross sales of the first outlet of Modular Homes Philippines Philippines for the first year of operation is equivalent to 328 million Philippine Pesos based on 2,000 housing units sold and services to be rendered to clients. A net income of 67.80 million Philippine Pesos will be realized in the same year of operation. By the fifth year of the operation of the warehouse store, gross sales is projected to be 1.829 billion Philippine Pesos. On the other hand, net income is projected to be 198.50 million Philippine Pesos.

From this initial warehouse store of Modular HomesPhilippines, the business network will grow to serve the other cities and provinces of the Philippines and will expand in other areas. Furthermore, the business will expand to engage in other related services such as house rental, building housing for the retirees, and establishment of other structural edifices.