GT Cosmetics: Another rags-to-riches tale

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Category: Entrepreneur

01 Jul 2014

 

Written by Rizal Raoul Reyes / Correspondent

THE rags-to-riches story of Rogelio and Leonora Salvane is a lesson of deep faith in the Almighty, perseverance, humility and optimism. The now-millionaires from Cebu built their soap-making business with an initial capital of P500 in 1994. The business is now raking in approximately P25 million in revenues a month.

Rogelio, co-founder and president of GT Cosmetics, and Leonora, founder and vice president for Operations, decided to shift into soap making when their heavy equipment business was not doing good. Fortunately, a trainor from the Technology Livelihood Resource Center (TLRC), who Leonora considers as an “angel,” encouraged her to take up a course on skin-care products. As they say the rest is history.

The success story of the Salvane shows why people should not rely heavily on the jackpot mentality to achieve financial security. At the same time, it teaches us that deep faith alone cannot produce instant wealth. You need to work.

Here are the excerpts of the interview with Mrs. Salvane.

BusinessMirror: What is the meaning of GT? How did you develop the name?

Salvane: GT means God’s Talent.  It was established to sustain the family income. The family is very
active in the prayer movement. 

Moreover, I wanted to sustain my family income through a clean and honest way. My goal in the business was answered by a prayer. Before, I was engaged in selling pneumatic pumps to manufacturing companies, industrial plants and government.

It was like hitting two birds in one stone. He gave me the opportunity to practice my chemical engineering degree through this cosmetics business that we have. At the same time, I am engaged in providing a modest living for our family. I always pray to God for the success of the business. The earnings come along and we also give back to society. It was also the goal of the family to help the community especially those who are coming from the marginalized sector.

BM: GT Cosmetics started with a capital of P500 in 1994. How were you able to grow the business?

Salvane: That was the capital of our soap business. Before, I used to bake it at home. I used my baking and molding pans plus a few kilos of coconut oil and some ingredients for the soap. We started with papaya and carrot soaps. Later, we developed other skin-care products like moisturizing and bleaching creams, sunblock, clarifying toner and recently the carrot lotion.

After finishing the process, I gave the finished products to my friends to try it for themselves. We tried the direct-selling method to market the products. My friends were impressed with the soap the family made. Those comments motivated me more to excel in the business.

We engaged in direct-selling marketing to broaden our market. The reputation of GT Cosmetics’ products as quality products spread through the word of mouth of satisfied customers.

BM: Describe the growth path of GT Cosmetics.

Salvane: In 1996 we entered the department stores by approaching them directly. Initially, we made a major stride in the Visayas-Mindanao area. In 2011 we entered the Luzon area. Right now we are also present in the US, Canada and Japan. Right now, we are talking to a distributor in Qatar for the Middle East market. Several years back, we were able to ship some products to a hotel-spa in Finland. However, our Filipina contact in the hotel resigned and we lost contact with her.

Right now, GT Cosmetics is preparing for the Association of Southeast Asian Nations (Asean) integration in 2015. We want to make sure that our customers will approve the ingredients of our products.

Furthermore, we are also planning to review all the products to determine what products will be compliant and have the biggest potential in the Asean market. We are also looking for partners who can supply us the materials for our expansion.

We are beefing up our capacity by putting up our third plant in Cebu in response to the expansion for 2015. Our existing manufacturing plants are located in Cebu and Bulacan.

BM: How do you manage the business?

 Salvane: For me, the basic thing to do is practice regular management by going to the daily operations of the business. I also started to share the blessings once GT started to earn. I increased the incentives and commissions of our sales staff.

At the same time, we also made a big effort to continuously improve the quality of our products. We want to be engaged in quality manufacturing not into mass production.

I also put passion into my work. If you have passion, you don’t feel like you’re working.

I also practice and encourage humility. Whenever people tell me that I am very successful, I say “I owe it all to the Lord.” 

I also started training my children in running the business. The eldest is working as a comptroller in GT Cosmetics, while the second is a purchasing manager. The third is the general manager, while the fourth is a production manager. The youngest is taking up chemical engineering.

Above all, we acknowledged God as the head of the business. As a member of Couples for Christ, I always give priority to the Lord.

BM: What is the company’s corporate philanthropy program?

Salvane: We launched a school called GT Bright Academy in Cebu as our way of giving back to the community. It has 20 classrooms.

The things that matter most to Manny O.

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Category: Marketing

13 Jul 2014

 

Written by Jeahan Virda B. de Barras / Photo by Stephanie Tumampos

WHEN you ask a successful man about what he could still possibly want in life at this point, you’d possibly get upright answers like “I want good health,” or “I want my family to be happy,” or “I want to leave a mark in this world.” But here is Manny Osmeña, popularly known as Manny O., who gives the most surprising answer of all: “I want more money. I need more money,” he declares, without even a slight tinge of indignity.

This is a very odd answer from him because, backed with his businesses that are important players particularly in the tourism industry, he evidently doesn’t need more money. And for many people who know this man of faith, his life does not revolve around money at all.

But now we find him lobbying tycoons after tycoons, bluntly imploring for large funds—all in the toil of making possible some things that are very close to his heart.

A new hope for all

Hailing from Cebu, Osmeña is the group chairman of the Manny O. Group, with a roster of companies including the Mövenpick Resort and Spa Cebu, the Cebu Pacific Catering Services, the SkyKitchen Philippines Inc. and the SkyLogistics Philippines Inc. He also has quite a fascinating passion for wines which he translated into the multiaward-winning, globally renowned Manny O. Wines brand.

From afar, one would think that Manny O. already has it all in life. Supported by his loving family, his passionate team behind his businesses, and his faith in God, he is nothing short of satisfied over what he has and who he is now.

But when he celebrated his 60th birthday last year, he started plummeting. “God suddenly placed a burden in my heart—He told me that I should now start helping to really bring social progress. For the longest time, I’ve been telling my children that before God calls me home, I have to go back to helping those who are in need first. When I crossed 60, I realized, what am I waiting for?”

A couple of weeks after this realization, a big earthquake happened in the Visayas region. “I was really scared. It was not an ordinary earthquake at all. I felt that was already my time,” Osmeña recalled.

The big earthquake was then followed by a twister in Cebu. And then finally, by Supertyphoon Yolanda. “With all the destructions that hit home, I was wondering about what God is personally trying to tell me,” Osmeña said.

The Manny O. Group sent volunteers during the whole time that the Visayas was recuperating from the disasters. Quite notably, all the revenues of Mövenpick Hotel during the weekend after Yolanda struck were used to help the affected people. But after all these, Osmeña wanted to do more. “We handed packs to 10,000 families which were good for about two days. The thing that really bothered me was that, what’s next for them?”

“By that time, I was thinking, these people lost everything—most of them have no hope anymore. And they need to regain that, starting with getting a new home and livelihood. This is why I partnered with Gawad Kalinga for a community-rebuilding program.” The partnership, Osmeña said, aims to build 160 houses in four Yolanda-affected communities, and finish everything by the time the year ends.

This project also further spurred the HopeNow Foundation, which will be mobilizing on full swing in the coming months. “This foundation is how we want to show that there must be an urgency to give hope—not tomorrow, not the following day, but now,” Osmeña said.

A key to braving future disasters

For months, the HopeNow Foundation and the partnership with Gawad Kalinga have been keeping Osmeña busier than ever. And busier days are still ahead, with the start of the Hospital on Wheels, a new ambitious project that had the mogul himself lobbying around to seek support.

He first officially opened up this idea during the Open Collaboration with East Asia New Champions (OCEAN) 14 in Cebu, a post-summit of the World Economic Forum. “The forum brought about the topic on how doctors, who were volunteering during the aftermath of the disasters, couldn’t carry out their duties effectively because, although there may be medicine, there was a big shortage of medical facilities where they could perform major or minor surgeries.”

“From there, I just suddenly spilled the grand idea of hospital ships,” he said.  “I didn’t even know how much that would cost, what that would mean. But right then and there, I said I’m going to put in half a million dollars as seed money, to get the ball rolling.”

Osmeña then talked to two of his tycoon friends who both became very interested with the project. After much planning, the idea was redeveloped into the Hospital on Wheels. Osmeña explained that the Hospital on Wheels will be a fully functional, state-of-the-art hospital. “For this, there will be three trucks with specific purposes. One would hold a high-tech operating room. The other two would have diagnostic laboratories to perform major first-aid works. And then tents would be set up around the ‘hospital’ for people who are recuperating.”

“We will be using solar energy, of course. And all trucks will be all-terrain to be able to travel even without roads. It will be the first of its kind,” he added with excitement.

But Osmeña was advised that he cannot perform such an ambitious project alone. Hence, he is now seeking for the help of the biggest names in all industries. “It feels so good to go and ask for money from wealthy people, to be able to give to those who need it more. Normally, asking for money is for your own and it’s embarrassing. But with this, asking for money, it just makes me proud,” he said.

“What is really touching is that right after I stepped out of the stage during my speech at the OCEAN 14, people from big corporations were already lining up to support. From drug companies, information technology, banks...big companies both in the Philippines and other parts of the world. This project has become global.”

“I’ve now been talking to people from all parts of the country and the world. But I tell you, it was God who prepared these contacts for me to do business with. I didn’t even look for them. When God orchestrates it, He just surprises you.”

“I’m just being obedient to God’s will now. So during gatherings, while people are exchanging their business cards, I am handing out materials talking about the Hospital on Wheels,” he quipped.

A good use of the businesses

In the midst of Osmeña’s current advocacies, he is also starting to think of ways on how he could find more money for the Hospital on Wheels using his businesses.

His Manny O. Wines, for one, are going to be put to good use in the coming months. A hundred bottles of the famous Manny O. Bibulus ’07 Medoc Cru Bourgeois—a premium red Bordeaux which won the “Trophée  Vin Rouge,” the highest award at the Vinalies Internationales 2013 in Paris—will be put on auction on September 1 this year at the Mövenpick Hotel.

“After we won last year, we started recalling all the ’07, and we were able to recall about a hundred bottles only. So it has become rare. And I thought, this will be a good avenue to raise more money for the project.”

Osmeña said he has settled at P50,000 as floor price for the auction. So far, he has already had a few friends who have committed to coming to the auction.

“Whatever amount comes in from the auction, I will double it and add to the seed money that I’m putting in for the Hospital on Wheels,” he declared.

When asked about how he is going to sustain the leverage of his businesses while he is busy running his advocacies, he confidently said: “I am empowering my managers now. I am urging them to make a stronger charge. Most important, I am encouraging them that the Manny O. Group has a higher purpose. We don’t just make money to put in our pockets.”

He also said that he is very particular with empowering not just his managers, but the rest of the people who make up the whole Manny O. Group. “I always tell them that whatever they could contribute to the pie, that will be the one to sustain the business. I also tell them often that I need them to help me, not to help me enrich my pocket, but to help me to be able to give more.”

“How so? I believe that the only way charity is made sustainable is to have good income. You cannot give what you cannot have.”

A life lived by faith

Ultimately, Osmeña said his advocacies are really what he will be spending most of his time for in the next years.

“I know that this is where God is calling me now. I just have to be obedient and He will take care of the rest, including my business. Business is about opportunities. And who gives you the opportunities? You cannot arrange it. Only God can arrange it.”

“So whatever I have now, it’s all because of Him. So this life is about following His good and perfect will. And to me, more than anything, that’s what matters most,” he concluded.

Century Properties expands into the recurring income business

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Category: Properties

08 Jul 2014

AS experts forecast the exponential growth in the country’s BPO and retail industries in the coming years, listed real-estate company Century Properties Group Inc. has firmed up its plans to bring its tradition of innovation into these industries and seize opportunities to grow the company’s recurring revenue streams.

The company has earned a reputation for challenging the status quo in its residential developments. It has led the upscale to premium real-estate niche to newfound heights in recent years, with a success rate that industry observers have pronounced as game-changing.

To bolster its position within the real-estate industry and to tap into new markets given the evident increase in the purchasing power of local consumers, Century has begun projects in retail and office space. It earlier announced that it is expected to complete six commercial buildings totaling roughly 160,000 sq m by 2019. Such projects are expected to provide the company with a stable and balanced stream of cash flows.

Shopping for new markets 

Early this year, the company completed its first such project, the Century City Mall. The first mall in Makati in close to a decade, Century City Mall is positioned as the Mall of Modern Makati, a project that gives rise to the new crop of shopping centers called “boutique malls.” The five-story retail and lifestyle center complements the company’s master-planned community Century City and likewise caters to the communities close to it.

The company is also looking into expanding this new portfolio in its other master-planned developments.

“Unlike other mall developers, which seek to serve a market that extends across borders with an expansive range of shops and services, we want to follow the track of Century City Mall, which is to bring together stores in a single facility with its set of curated selection of shops and offerings to complement its own residential and office communities,” Century Properties chief operating officer Marco Antonio said.

Addressing a concrete demand for office space

With the continued absorption of the BPO industry of newly developed office space, other businesses expanding and office space vacancy rates at a low, Century Properties is seeking to address a portion of the demand by building two office towers. Late last year, it announced the Forbes Media Tower and Asian Century Center in Makati and Bonifacio Global City, respectively.

Century Properties’ move runs parallel to the forecast of the Business Process Association of the Philippines (BPAP), which has estimated that by the end of 2013, the industry would employ a total of 960,000 workers nationwide, translating to a demand for office space of about 2.8 million sq m.

Notable is the Colliers International forecast of a dip in the overall vacancy rate in the Makati CBD to 3.4 percent in the next 12 months due to continued strong demand. Meanwhile, office rental rates in the Makati CBD rose in the first quarter because of increased competition for available spaces.

The Forbes Media Tower is being honed in the tradition of Century Properties’ international collaborations. It is a partnership with the building’s namesake, the Forbes Media Group, the media company responsible for a leading global resource of business information and news, Forbes Magazine.

Asian Century Center, meanwhile, a joint venture with Asian Carmakers Corp., was announced as the future home of the largest showroom of upscale car brand BMW. Planned to rise to 23 floors, the tower has begun construction and is expected to be completed in 2017.

The new BGC project is foreseen to meet the demands for highly efficient and effective office development. In anticipation of the rise in the number of BPOs setting up in the country, Asian Century Center is being designed to cater to a 24-hour working schedule.

“We have secured our roles in the expansion of businesses in Makati and in Bonifacio Global City, where the prospects remain high and will continue to be so in the coming years. The recent announcement of global outsourcing research and advisory firm Tholons that Manila has overtaken Mumbai as the second leading outsourcing location in the world bodes well for the Philippines, as this opens a climate of security in BPO investments in the country,” Antonio said. 

In its Philippine overview forecast for 2014, Colliers affirmed this, saying that “the BPO industry will continue to influence the commercial office sector in the next few years, as the market anticipates an influx of BPO companies entering the country.”

 Century Properties Group Inc. is a forerunner of premium real-estate developments in the Philippines. Since it was founded 28 years ago, Century has transformed close to 850,000 sq m of space into premier residential and office developments in and outside Metro Manila. Through its global brand partnerships that underscore premium asset values and product differentiation in the industry, the company has become synonymous with quality real-estate projects that showcase innovative and world-class design, contributing to the transformation of the Philippines into a global destination.

www.century-properties.com

US hardwood producers see improvements in Cebu

By Liberty A. Pinili

Friday, July 4, 2014

THE Philippine furniture export sector has yet to recover from the softening of its biggest market, the United States, but American hardwood producers see recent improvements in the industry, particularly in Cebu.

Members of the Cebu Furniture Industries Foundation Inc. (CFIF) that produce wooden furniture import hardwood from the US, among other countries, because of their buyers’ requirements. But their purchase volumes have dropped drastically following the recession in the US, the biggest market of Cebu-made export furniture and furnishings.

One company owner, who asked not to be named in this story, said they used to import 20 to 25 40-footer cargo containers of US hardwood. But after the recession, they now import only four to five 40-footer cargo containers.

“The Philippines is a difficult market at the moment,” Michael Snow, executive director of the American Hardwood Export Council (AHEC), said during the AHEC 19th Southeast Asia and Greater China Convention from June 25 to 26, 2014.

“But we see opportunities, especially in Cebu. We want to do more in Cebu,” he said in a press conference during the convention.

Tom Inman, president of the Appalachian Hardwood Manufacturers Inc., said there are improvements in the US that offer opportunities to Philippine furniture manufacturers.

He said the interest rates in the US remain low, which encourages borrowing and spending on the home market. There is also a growing trend in home improvements, he added.

“We expect these (improvements) to continue,” he said.

He said most of the growth in the sector can be seen in flooring, home furniture and cabinets, which are associated mainly with home improvements.

Sustainably sourced

There are five regions in the US that export hardwood. One of them is the Appalachian Region, which covers the state of New York, Pennsylvania, Maryland, West Virginia and Virginia.

Some CFIF member-companies said they import hardwood from the US to comply with requirements of their buyers.

US hardwood are certified as legally and sustainably sourced in compliance with timber and wood product regulations, not only in the United States, but also in the European Union and Japan.

According to the National Statistics Office, Japan is the Philippines’ top export trading partner in the first semester of 2013. More than 28 percent of Japan’s imports from the Philippines were woodcraft and furniture, valued at US$1.4 billion.

But a CFIF member-company that responded to a Sun.Star Cebu survey said its US hardwood imports can no longer fill a cargo container so it cannot maximize shipping costs.

Mark Barford, US National Hardwood Lumber Association executive director, told Sun.Star Cebu that Philippine companies can pool their imports into one container.

“They can also follow a practice in China where one company imports hardwood in bulk and then distributes these to local (Chinese) saw mills and other manufacturers,” he said.

He said becoming familiar with NHLA lumber grading can save Philippine companies a lot.

Right grade

US hardwood lumber is priced according to its grade, which is based on cut and quality. Long and clear cuttings are priced higher than common-grade lumber.

Long and clear cuttings are suited for high-quality visible furniture parts, like a table top. A 2A common grade, also known as economy grade, are suitable for various furniture parts and flooring.

“Getting the right lumber grade also prevents wastage from cutting,” Barford said.

He said Philippine companies can consult the NHLA and even US hardwood exporters about lumber grading.

In 2009, AHEC and NHLA conducted a seminar on lumber grading for CFIF members.

CFIF member-companies that responded to the survey said they also import hardwood from Europe. They usually buy hard wood species like oak (red/white), maple, walnut and cherry.

One company said it imports medium-density fiberboard from Malaysia, China and Australia, and plywood from China and Singapore.

Many Philippine export furniture makers import wood and wood products to be sure about quality and environmental compliance.

IPI owners convert property in Dalaguete into beach resort

By Katlene O. Cacho

Monday, July 7, 2014

OWNERS of Cebu-based pharmaceutical and healthcare products manufacturer International Pharmaceutical Inc. (IPI) has ventured into resort development in Dalaguete, Cebu to take advantage of the growing tourism traffic in the south.

From an initial investment of P750,000 in 2007, Dennis Wong, who belonged to the third-generation owners of IPI, said they converted the family’s 40,000 square meter property in barangay Coro, Dalaguete into Dakong Bato Beach & Leisure Resort, initially to cater to the family’s common interest—the beach.

He said they started off with only two rooms for family use but one development led to another until they turned it into what it is now.

Potential

“We realized that our property has huge potential in tourism especially in providing leisure and accommodation services to local and foreign tourists who frequent the south,” said Wong.

The resort is located right where the Dakong Bato (Big Rock) is, one of the famous landmarks in Dalaguete. It has 22 rooms and is equipped with amenities such as swimming pools, cottages, restaurants and function rooms. The resort can accommodate up to a hundred people.

It also has basketball courts, rubber kayaks and dingy boats for teambuilding and sports activities.

“We completed the last phase of the resort development last year,” said Wong.

The town of Dalaguete is known as the “vegetable basket and summer capital” of Cebu.

Among its tourists attractions are Obong Spring, Osmeña Peak, Mantalongon Highlands and Dalaguete Beach Park.

Dalaguete is also the hometown of Wong’s mother, who once served as the town’s mayor.

Giving back

“Converting the family’s property into a resort facility was our way of giving back to the community. Dalaguete has always been IPI’s recipient for corporate social responsibility (CSR) activities such as free medical and dental mission,” said Wong.

He also believes putting in place an accommodation establishment in the town will help spur tourism.

“We are supporting the tourism industry because we feel that it is one of the industries that is ripe for the Philippines, especially Cebu,” he said.

Since its opening, Wong reported the resort facility has been getting positive feedback from guests.

“We had the best summer so far. We are 30 percent occupied during the weekdays and 100 percent full during weekends,” he said, noting that most of their guests are from locals and corporate bookings.

IPI also owns Wild, Wild West an adventure tourism site located in Balamban.

The Department of Tourism has been encouraging Filipinos to invest in tourism, saying this is one of the fastest way to attain inclusive growth because it provides jobs, spurs businesses and links industries.