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Mir & Ryvi

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Mir & Ryvi

  1. 1. Mir & Ryvi October 17, 2013 Bahay ng Alumni, University of the Philippines Quezon City, Philippines
  2. 2. Mir & Ryvi Home of Organics Company Laiden Pedriña Managing Partner info@mirandryvi.com laiden.gp@gmail.com +639178143245 (632)5534959 2
  3. 3. • • • • • Business Overview Mir & Ryvi (M&R) is a for-profit social enterprise that is engaged in manufacturing handmade soaps and cosmetics. It employs unemployed mothers, adult women and out-of-school youth (OSY). M&R provides its employees a working environment where they work and study at the same time. Regular trainings and life skill workshops are held for the employees. The Company sources its ingredients from two local organic farms and ethically managed suppliers and laboratories abroad. M&R products are exclusively available at Beauty Bar, a chain of beauty stores managed by Rustan’s Group of Companies. Rustan’s is a group of malls in the Philippines known for carrying luxury brands. Its marketing positioning is similar to Harrods of United Kingdom or Barney’s of United States. M&R has just launched a product line for exclusive hotels and spas. The first client for this line is Marriott Hotel Manila. M&R also manufactures under private label for green enterprises. It has one big account for tollmanufacturing. Photo Sourced from the following sites: http://www.caviarcreme.com/interview-regina-rosario/559 And Marriot Hotel Philippines website 3
  4. 4. Key Investment & Impact Highlights • Mir & Ryvi is a provider of high quality, artisanal, naturally formulated and premium soaps, skin care and cosmetics; • Mir & Ryvi has a three-compelling commitment: people, nature, and science. The social component consists of an education program and continuous skill training for its employees, many of which are out of school youth and previously unemployed mothers. We have also launched an on-line distance education program where even non-employees of M&R can benefit in our education program ; • The Company has conducted intensive research and consulted with experts to select the best plant-based ingredients and essentials oils. These ingredients are sourced from certified organic farms in the Philippines and other plant-based extracts are sourced from Jeju Island and the Amazon Rainforest; • We have a Strong Growth Potential in our Target Market Here & Abroad – despite of small initial capital to invest, we have overcome two barriers to entry in the natural cosmetic and skin care industry – the government regulations and distribution system. • Strong Team – M&R has strong research team composed of a registered pharmacist and registered chemist, and has a strong Board of Advisors consisting of medical practitioners. The Board also consists of civic leader, environment advocates, and former exporter. Joining our Team next month is another chemist who is currently finishing his Masteral Thesis on cancer and its cure. His thesis was commended here by the Department of Science and Technology and has been given grants for further study and supported by a known pharmaceutical company. 4
  5. 5. Problems to be addressed and the target market Opportunity for Social Improvement Addressing Local Unemployment to address the national unemployment • There are around 2.9 Million Filipinos who are unemployed according to the National Statistics Office (March 2012); • Based on our survey alone in 5 little/poor communities in San Antonio, San Pedro, Laguna ( a community near our Company’s address) with 400 correspondents (some are from informal settlers’ communities) 93 % of the mothers with 3 to 5 children are unemployed, while their husbands have either contractual jobs or jobs with less than a minimum salary ; 91 % have not finished their high school or have not entered or vocational courses; 99 % said that their parents too (who are their prime of their ages) were not able to pursue higher education; 91% admitted that they have been struggling hard to send their children to school • The social component of M&R addresses a crucial issue in the Philippines: lack of access to education and opportunities for employment. The production staff of the company consists of previously unemployed mothers and out-of-school youth. The education program and training program that are currently in place, and in the process of further development, provide opportunities for staff to acquire skills, income and further their education through life skills trainings and completing high school or enrolling in local community colleges. Target Market • Because of multiple bottom lines and the extra cost of sourcing our raw materials, M&R products are priced at a premium. Therefore it targets individuals from the A-C market. M&R links the youth and mothers who are from the base of the pyramid to the market on the middle and top of the pyramid. These polar segments are the target markets and beneficiaries of the Company. M&R’s value chain system creates better value for the artisan products as it delivers quality products tested and researched by its chemist and pharmacist to the target market. 5
  6. 6. Industry Landscape & Market Opportunity Global Landscape •According to Transparency Market Research, the global demand for organic personal care products in 2012 was over USD 7.6 billion. It is expected to grow at USD 13.2 billion by 2018. •Mainstream players like Shiseido, P&G, L’Oreal, Clarins and LVMH have acquired companies that are focused in organic cosmetics. •An industry that was traditionally known for female customers is gaining popularity even with men. Trends & Competitive Landscape in the Philippines •According to the study of Euromonitor in the trends and landscape of beauty care in the Philippines, hair care is the largest category in beauty care, followed by beauty and personal care. Last year (2012), the sales in skin care reached Php 31 billion (USD 756,097,560.98), a 4% increase in current value terms; and •Skin whitening and anti-aging products are the leading products for Filipinas. Big players dominate the beauty care in the Philippines – these are Unilever, P&G, Avon, Splash. On the periphery, small players consist of cooperatives, small enterprises and hobbyists concentrate on natural skin care products. These companies sell their products on-line, bazaars and specialty boutiques. Market Opportunity •Right now, M&R produces for a green enterprise that position itself as natural alternative to consumer brand; and •While doing so, the brand M& R hopes to remain as niche brand. The market in the Philippines may be still small and the export market present a bigger opportunity to sell to more consumers with higher spending market than our market base.
  7. 7. Operational Plan & Milestone • More Luxury Shops & Hotels: In the Philippines, we have established a strong market foothold, winning key accounts such as Beauty Bar (Rustan’s) and Marriott Hotel – crucial to our plan is winning 3 to 5 more key accounts from luxury hotels and spas in the Philippines. We have already started discussion with 30+ hotels and spas and they are keen on accepting us as new accredited supplier. These plans will create more local revenues for us; • Test Exporting: We have tested market interest in countries like USA and South Korea. We have participated in two international expo last year and have tried exporting 5,000 pieces of soap to Seoul. These export markets present an opportunity to sell to more consumers with higher spending power than our base market; • Research & Development: We have developed natural bases for lotions, serum, body wash, sunblock, lip balm and in the cusp of introducing these products in our portfolio next year, to help reach an expanded market here and in the Philippines. These products address specific skin concerns such as atopic dermatitis, skin asthma, acne and eczema; • We have a steady toll-manufacturing accounts that allow us to keep manufacturing overhead down. Work in progress is another account from a consolidator in Saudi Arabia that requires us to regularly produce 120,000 soaps. This is equivalent to 1 cargo. This growth allows us to continue carrying out our social mission, which has been central to our business since founding. 7
  8. 8. Social & Environment Impact Metric 2010-2011 2012 2013 2014 Number of Employees Employed from the marginalized sector who will be benefitting from our job offer and continuous trainings and education 2 to 3 staff 8 production Staff 8-12 production staff 20 staff Number of partner local organic farms 0 2 2 4 Number of Life Skill Trainings conducted for Employees 0 4 6 6 Number of indigent women who will benefit to the “Extended Education Programs to Non-Employees” (launched this year) 0 0 10 20 Number of employees from the OSY and mothers who will pursue college 0 0 2 Michael John Malate/ Rail Masungca 7 5, 433, 500 ml Not yet determined Not yet determined n/a (on-going study) n/a (on-going study) n/a (on-going study) Chemical offfset: for every grams or millimeters of M&R products used how many millimeters or grams of harmful chemicals are not disposed in the bodies of water and soil and/or not absorbed by our bodies Health Benefits (on-going study) n/a (on-going study) As we expand our products and sales, we also plan a parallel expansion in our social mission 8
  9. 9. Social & Environment Impact Metric Number of Employees Employed from the marginalized sector who will be benefitting from our job offer and continuous trainings and education 2010 2010-2011 2 to 3 staff 2012 8 production Staff 2011 2013 8-12 production staff 2012 2012-2013 9
  10. 10. Social & Environment Impact Metric Number of Life Skill Trainings conducted for Employees 2010-2011 0 2012 4 2013 6 10
  11. 11. Testimonials 11
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  13. 13. Metric Social & Environment Impact 2010-2011 2012 2013 2014 2015 Number of Employees Employed from the marginalized sector who will be benefitting from our job offer and continuous trainings and education 2 to 3 staff 8 production Staff 8-12 production staff 20 staff 30 staff Number of partner local organic farms 0 2 2 4 6 Number of Life Skill Trainings conducted for Employees 0 4 6 6 12 Number of indigent women who will benefit to the “Extended Education Programs to NonEmployees” (launched this year) 0 0 30 100 200 Number of employees from the OSY and mothers who will pursue college 0 0 2 Michael John Malate/ Rail Masungca 10 25 5, 433, 500 ml Not yet determined Not yet determined Not yet determined n/a (on-going study) n/a (on-going study) n/a (on-going study) n/a (on-going study) Chemical offfset: for every grams or millimeters of M&R products used how many millimeters or grams of harmful chemicals are not disposed in the bodies of water and soil and/or not absorbed by our bodies Health Benefits (on-going study) n/a (on-going study) As we expand our products and sales, we also plan a parallel expansion in our social mission 13
  14. 14. Management & Governance (Current members of the Board) Ms. Laiden Pedriña •Economic graduate from University of the Philippines, graduated with honors, cum laude, and has MA units on Global Development Studies (United Nations University) •2006 Most Outstanding Volunteer of the Philippines (First youth awardee) •2005 Global Fellow of International Youth Foundation •2010 of the Top 100 Most Inspiring Young Entrepreneurs and Social Changemakers in Asia Mr. Mark Anthony Navida •He used to head the Creative Department of a chain of stores for high-end kitchenware and utensil •He is a civil engineering by training, artist by profession •He designs packaging and marketing collaterals for NGOs and small and medium enterprises and cooperatives Ms. Annruzzen Belena, Rph •Registered Pharmacist •Graduated cum laude, BS Pharmacy from University of Perpetual Help System Biñan •Currently takes her Masteral Degree in Pharmacy 14
  15. 15. Ms. Mari Sherlin Salisi Chua, RCh •Licensed Chemist, Reg. No. 9668 •Master of Science in Agricultural Chemistry, University of the Philippines Los Baños, Laguna Mr. Stephen delos Reyes •BA Social Science at De La Salle University and has MBA degree from Asian Institute of Management •Has worked as Financial Director and Consultant of various Renewable Energy projects; •He used to work for Price Waterhouse Financial Advisors as President and has developed international client base in the business including real estate, wireless telecommunications, chemicals, power projects, insurance and trading. Dr. Renzo Guinto •Consultant for DOH and IOM •Works as Liaison Officer for World Health Organization of the International Federation of Medical Student’s Association •Cum laude, BS Medical Science, University of the Philippines- Manila 15
  16. 16. Financial Overview (Historical & Projections) Metric 2010-2011 Sales from local clients (own brand and local tollmanufacture) and international clients Pre-financial reporting system GROSS INCOME 2012 USD 104, 365. 932 2013 ~USD 120,000 2014 Projected USD 409,000 2015 Projected USD 819,243 Bazaars: USD 1,000 – USD 3,000 16
  17. 17. Future Financing Investment Amount Sought USD 366,000 Investment Type Equity-investment/ Loan Expected Returns & Exit Options • Equity: Buy-out of shares to 3rd Party • Equity: Sell shares to the members of the Board of Directors at the agreed valuation • Loan: Payment Use of Proceeds • Launch of new products • Expansion of distributional channels (exporting abroad) • Strengthening of Social Objectives Investor Protection Terms • A seat in the Board of Directors • Voting Rights • In the Operation, they can assign another person based in the Philippines to be one of the signatories of check Expected Close of the fund raise • Latter part of this year 2013 to prepare for 2014 Other Form of Support • • Regular problem-solving and mentorship to help us craft strategy and detailed plans for the next three years Introduction to contacts that will facilitate expansion within the Philippines and / or export markets 17

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