Business as a vocation

Tumandok Crafts Industries chief executive officer Josephine Locsin has an unusual business partner.

"I see the business as a vocation. By spreading economic benefits to the communities the company operates in, I am able to spread the good news about God’s love," she said. "I have absolute faith in my business partner. He has never let me down."

A case in point was the fire that gutted the Tumandok factory in Bago City, Negros Occidental four months ago. The estimated damage from the fire was P4.5 million.

"We were not completely wiped out by the fire. Months before, we relocated a part of the factory to Talisay City where we have a joint venture with a furniture manufacturer for tabletop accessories and decors," said Locsin.

A European trading partner quickly extended a five-year loan of $60,000, carrying an interest rate of 5% a year, and advanced payment for two orders worth $6,000. Because of this generous loan, the company was able to pre-terminate an earlier P1.4-million loan with the Small Business Guarantee Fund, which bore an interest rate of 14% a year.

"The SBGF loan financed the purchase of a P2,000 square meter foreclosed property from Land Bank of the Philippines. I shared half of the property with a pastor who had been eyeing the property for the past two years but couldn’t afford the price. On the other half, the company began construction of a factory which is now 70% completed," said Locsin.

Inspiration

Tumandok started out in 1987 as a buyer and seller of native handicrafts.

"I was then working as a computer programmer-trainee in Negros Navigation Co. when I heard our chairman, Daniel Lacson, talk about the need for more employees to become employers. His talk inspired me to attend seminars and exhibits at the provincial capital, where I saw the potential of Negros products in the world market," said Locsin.

The initial capital of P5,000 was increased by another P50,000 a year later when Tumandok decided to go into production.

The first factory in a rented 500 sqm. unfinished property had a tent for roofing and uncemented floors. Twelve workers executed the home décor designs of Locsin’s Bicol-based brother in farm waste materials such as rice hulls and sugarcane bark mixed with fiberglass and resin.

Today, Tumandok has a workforce of 70, including 13 who are subcontractors.

"The entrepreneurial spirit that I learned along the way is also the same spirit I spread to my employees. I would like to see the time when all of my employees become employers and entrepreneurs themselves," said Locsin.

Export market

Tumandok’s major export market is the United States.

"We export our products either through an agent or directly," said Locsin. "The American market is now extremely competitive. Tumandok has eight direct competitors (doing the same line) in Negros alone and another 10 based in Cebu."

In an effort to diversify its market, the company has been participating in the international trade organized twice a year by the Center for International Trade, Expositions, and Missions.

"The first time we participated, our participation fee was paid for by the Europe-based Association of Partners for Fairer Trade Inc.," said Locsin.

A best-seller in the US since 1996 is a treasure chest made from bamboo bark. A new product, the envelope vase made from cassava, has a big demand in Europe.

Tumandok also attends trade fairs geared towards the local market, the most recent one being the annual event organized two weeks ago by the Negrense Island Inc., the marketing arm of the Association of Negros Producers, at SM Megamall.