How to Build a Multimillion Business from only P5000!

IN 1985, Gil Nemeno gave up his managerial position at Metrobank to concentrate on his fruit juice business. What started from a P5,000-backyard operation with only three employees is now a multi-million fruit processing firm staffed by 450, and housed in a 4,000-square meter plant located in Pateros, Rizal.

From marketing to friends and relatives, Nemeno now sells the company's products and services to more than 1,000 institutional clients, including schools and cafeterias, ten bankable industrial accounts and an infinite number of retail customers.

From a single proprietorship, established with, among others, a loan grant from one of the Technology and Livelihood Resource Center's funding programs, Nemeno's RSN Food Products is now Nutrilicious Foods Corporation (NFC), which he jointly owns with a multinational corporation. Today, NFC produces premium fruit juices in a variety of flavors: mango, orange with sac, pineapple, buco, guyabano, calamansi, four seasons, lemon tea, choco-milk and black gulaman. The firm also produces processed natural fruits ideal for cake toppings, ice cream ingredients, and pies and pastry fillings. It is an accredited supplier of processed fruits to Purefoods Corporation, used as ingredients for the latter's ice cream products; to California Manufacturing Corporation for its Ladies' Choice fruit preserves; Jollibee for its twirl ice cream and peach mango pies; and Red Ribbon Bakeshop for mango cakes and tarts.

On starting a business, Nemeno advises prospective entrepreneurs: "Start with a creative idea. To translate it into a budding enterprise, back it up with desire, hard work and a strong determination to succeed. Failure is farthest from the thoughts of a success-focused entrepreneur." How has Nemeno steered Nutrilicious Foods Corporation to success and survival in an industry proliferated with local and international food giants backed up multi-million dollar capitals and supported by aggressive marketing campaigns?

Here, he shares his formulae for success and survival in the competitive food processing business.

Regardless of the size, all businesses face threats from growing competition, both from local and foreign firms. In an industry characterized by cut-throat competition, how does NFC ensure product acceptance and customer satisfaction?

NEMENO: The world market has become borderless, that's true. Instead of being regarded as an impediment, the competition should encourage every player in the food industry to take the initiative in implementing quality parameters. Quality is imperative in order to survive. There is no other alternative. As we hold on to our mission of creating only world-class standard products, there are critical standards implemented, monitored and sustained within the plant. Physical standards, for example, become necessary to be able to determine the acceptance of raw materials or finished products. There are also the sensory evaluations, chemical analyses, microbiological evaluations and inspections of plant facilities.

How do you ensure quality through your plant facilities and equipment?

NEMENO: The processing of fruit juices and frozen fruits involves the use of pulpers, mixers, blenders or liquefiers, and tanks. All equipment is fabricated in stainless steel and other non-corrosive materials. For proper storage and protection from microorganisms, we are equipped with blast freezers and walk-in cold storage facilities. The plant can process 4,000 gallons of various fruit juices and produce 10,000 kilos of processed fruits per day. These production outputs are multiplied by leaps and bounds with the acquisition and installation of larger capacity equipment, such as blast freezers and pasteurizing equipment and the construction of additional storage facilities.

Of course, these standards will not mean anything without the right organizational structure and staff training. How do you fit these into your company's total strategy?

NEMENO: As part of our company's thrust to inculcate quality into the mindset of all "nutri-leaders" (a company-wide term for all employees), we started a corporate-wide program on quality and productivity in November 1993 that we dubbed as Bayanihan Program. Bayanihan was adopted to draw up a parallelism with the age-old Filipino tradition of teamwork and camaraderie with the goals of improving the workplace, enhancing service quality, improving workmanship and product quality, developing competitive products and motivating nutri-leaders.

How do you use this as a tool for quality and productivity?

NEMENO: We have outlined three approaches: implementation of productivity programs, shared corporate values and continuous educational training. For the implementation of productivity programs, we have three strategies in place: Bayanihan Teams, Good Housekeeping Program and the Corporate Suggestion Program. On a weekly basis, teams composed of three to ten "nutri-leaders" from one workplace get to discuss and find solutions for problems encountered in their place of work. On top of these weekly meetings is a regular monthly activity conducted among the Bayanihan Teams to monitor activities and provide direction on the next stages of the improvement cycle. Another program that we have found effective in sustaining efforts in product and service quality is the implementation of the Good Housekeeping Program or GHP. While the Bayanihan addresses work-related problems, the GHP addresses the issues or concerns on sanitation. It ensures the maintenance of a clean and tidy workplace. On a monthly basis, a team in-charge of conducting inspections in all workstations chooses the Model Office, Model Shop, Model Locker Room and the Model Comfort Room. Another venue for creative and innovative ideas is the corporate suggestion program. Any suggestion or idea on how best we can improve our system or way of doing things is welcome. "Nutri-leaders" can get suggestion forms near our main gate and they can fill out the forms and drop these in the suggestion box. All the suggestions are evaluated and carefully studied. A feedback is given to all "suggestors" on the actions taken. On a monthly basis, the company confers the Natatanging Mungkahi ng Buwan (Outstanding Suggestion of the Month) citation to deserving individuals or teams. Another means to sustain efforts on quality is through positive reinforcements of the company's shared values. Every two weeks, we present a role model profile or a character that best exemplifies the featured trait or value for the week. Still, another means is through continuous education and training. Education is a continuous process. Management deemed it necessary to inculcate values and enhance employees' consciousness, awareness and skills improvement.

Thus, the 'ladderized' curriculum was designed and implemented to address the issue on quality and productivity. *

Rochelle has been working in the field of publicity, advertising and corporate publications for ten years now. When office work is light, she finds time to research about business opportunities that abound in the Philippines. You may email the author at trade@philippinestoday.net.