Financial Adviser: 5 Business Lessons Everyone Can Learn From the Founders of Crown Asia Chemical Corporation

For more than three decades, Crown Asia Chemicals Corporation has quietly built a significant presence in Philippine manufacturing. Known today for its PVC compounds, pipes and fittings, HDPE systems, PPR products, and roofing materials, the company has grown into one of the country's established suppliers to the construction, infrastructure, telecommunications, and utilities sectors.

Unlike many manufacturing companies founded by industry veterans, Crown Asia was born out of reinvention. Before entering the plastics industry, several of its founders were involved in the sawmill business. As market conditions changed and opportunities in the timber sector became more limited, they began searching for a business with stronger long-term prospects.

That search led to the incorporation of Crown Asia Compounders Corporation in February 1989. The company was established by a group of entrepreneurs that included Walter Villanueva, Nicasio Perez, Eugene Villanueva, Tita Villanueva, and others. Their vision was to build a business that could participate in the country's growing demand for modern industrial materials.

As demand for housing, water systems, and infrastructure development increased across the Philippines, Crown gradually expanded beyond its original compounds business. The company entered the pipes market through the Crown Pipes brand and later broadened its offerings to include HDPE piping systems, PPR products, and roofing materials.

Over time, Crown evolved from a specialized manufacturer into a diversified industrial company serving multiple sectors of the economy.

A major milestone came in 2015 when Crown Asia Chemicals became publicly listed on the Philippine Stock Exchange under the ticker symbol CROWN. The listing provided additional capital to support future growth while increasing the company's visibility among investors.

Today, Crown Asia Chemicals ranks among the country's largest manufacturers of PVC compounds and plastic piping systems. From a modest venture launched by entrepreneurs willing to embrace change, it has grown into one of the country's enduring manufacturing success stories.

How did a group of entrepreneurs successfully transition from the sawmill industry into plastics manufacturing and build a company that has endured for more than 35 years? And what lessons can business owners learn from Crown Asia's ability to adapt, innovate, and create new opportunities over time?

Here are the five business lessons every business owner can learn from the founders of Crown Asia Chemical Corporation:

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A crisis often signals that existing products or markets are no longer the same as they were before. Businesses that fail to adapt risk becoming irrelevant. History is filled with companies that were leaders in their industries but disappeared because they continued relying on outdated business models while competitors embraced new opportunities.

Reinvention allows organizations to remain relevant by responding to changing realities rather than resisting them. By reassessing the business and exploring new directions, leaders can build a more resilient organization that is better prepared for future challenges.

When the government banned lumber exports and restricted logging, they did not treat it as a cyclical downturn that would eventually reverse. Many entrepreneurs become trapped by their past successes and spend years waiting for conditions to improve. Instead, Walter Villanueva quickly began looking for alternative opportunities.

When entrepreneurs face disruption, there is often a temptation to enter whatever industry appears attractive at the moment. Eugene Villaneuva initially considered several possibilities, including furniture manufacturing using plastics. Eventually, however, he proposed entering the chemical business because he understood the market, the customers, the products, and the competitive landscape.

Many people assume entrepreneurship requires taking large risks. In reality, the founders were actively trying to reduce uncertainty. Nick Perez specifically chose a market populated by large, capital-intensive customers.

His reasoning was simple. Companies that required substantial investments in machinery and facilities were less likely to disappear overnight and more likely to pay their obligations. Instead of asking, "Which business can generate the highest profits?" they asked, "Which business offers the most secure and predictable customer base?"

The founders’ reinvention also shows the value of combining complementary strengths. Walter brought entrepreneurial initiative and the ability to mobilize family resources. Nick contributed experience from operating and growing the lumber export business. Tita provided financial expertise as a CPA. Eugene contributed industry knowledge and technical understanding of the chemical market. The transition was the result of different capabilities coming together at the right time.

“My father was in the lumber business, so at that time, the lumber export business was booming,” Nick Perez says. “When I graduated in March 1979, I told my father, ‘Why don't we just export lumber?’ So my father thought, ‘Okay, it's a good idea.’ And he went to Walter, who is my brother-in-law. My sister is Tita, who is Walter’s wife. Tita was a CPA working at SyCip Gorres Velayo.

“So my father asked them, and they set a meeting. He asked if they wanted to join in the export business. They said, ‘Yeah, it's okay.’  We exported lumber to Europe and the US. By that time, we were able to lease property in Congressional, and we already had a supplier and a buyer.

“That was from 1979 to 1989, until Secretary Factoran, who was DENR Secretary under Cory, banned the export of lumber. By that time, hindi lang banned export of lumber, pati logging. So logging was minimized because nakalbo na yung (forests) natin.

“So after that, in 1989, Walter came up with an idea of doing something else. He approached his brother, Eugene to help.”

“Actually, even before 1989, Nick’s father had been telling Walter and me to come up with a new business,” Eugene Villanueva says. “I was a sale manager of a chemical company. At that time, I was not thinking that I was going to retire because okay naman yung condition ko dun eh, but eventually, due to the encouragement a few years back ng papa ni Nick, na sinabihan ako, "Why don't you do your own business instead of, you know, continuing to work for other people?”

“So it was only in 1989, when I asked Walter if we wanted to do something else because I wanted to leave my company. So Walter talked to his father-in-law and said okay. I made a proposal like what we are going to do and how much capital we needed to start a small business. Yun una, it was about furniture business, where we could do using plastics instead of wood, parang downstream. But then later, I said, ‘Ok, let's do the chemical business,’ which I was very familiar with the market, and that's when we started.”

“When we started the chemical business, sabi ko, the market was a mature market so the risk was mas mababa because these people had money, they had capital and that’s the kind of industry that we wanted to sell our chemical products to because they had capital, so you didn't have to be afraid na babagsak lang ng ganon,” Perez says.  

“Kasi yung potential customers namin, they were very capital intensive, so they must have the capital to run their business. So if we sold our products to them, we didn't have any apprehension about not being able to collect, so yun ang unang pinili namin na business because it was more secure.”

“Because I was familiar with the market, I was sure about the business,” Eugene adds. “Of course, the product we were offering was also in direct competition with my former company. Eh malakas sila noon for cable insulation, mga ganon. We produced the material for these companies making the wire. We sold the material only, not the wire itself.”

In most industries, established players already enjoy advantages such as brand recognition, customer relationships, distribution networks, and economies of scale. Convincing customers to consider a newcomer is therefore one of the most difficult challenges in business.

A new entrant that succeeds in a competitive market has typically proven three things. First, it has identified a gap or weakness that existing competitors are not fully addressing. Second, it has developed a product, service, or value proposition that customers consider attractive enough to try. Third, it has earned sufficient trust to overcome the natural reluctance of customers to change suppliers.

Succeeding in a competitive market also creates credibility. Customers are often reluctant to buy from an unknown company because they are uncertain about its quality and reliability. Once a new entrant proves itself and wins a few customers, it becomes easier to attract additional business.

Villanueva and Perez did not win by introducing a revolutionary product or by drastically cutting prices. Instead, they focused on gradually building trust and giving customers fewer reasons to say no.

The first challenge facing any new entrant is credibility. In their case, wire manufacturers were reluctant to experiment with an unfamiliar supplier because the cost of failure was high. If a compound performed poorly, customers would not only lose the material itself but could also waste expensive copper and disrupt production.

This meant that customers had far more to lose than they had to gain from trying a new supplier. Recognizing this reality, they focused on building trust through product testing, samples, and persistent customer education. Rather than expecting immediate orders, they accepted that credibility had to be earned gradually.

Another insight is that they competed on value rather than price. Many small businesses assume that the only way to challenge larger competitors is to offer lower prices. However, they understood that aggressive discounting could undermine confidence in the product and weaken the economics of the business.

Instead, they concentrated on producing a better product and convincing customers of its quality. This allowed them to position themselves as a credible alternative rather than merely a cheaper alternative.

An equally important lesson is the ability to capitalize on unexpected opportunities. The Iraq War created concerns about supply disruptions and rising raw material costs. Existing customers suddenly became more willing to consider alternative suppliers.

They did not create this opportunity, but they were prepared when it arrived. They already had inventory, production capability, and relationships in place. As a result, they were able to convert a temporary market disruption into their first meaningful commercial breakthrough. Their experience suggests that success often depends not only on preparation or luck, but on the combination of both.

Another important lesson came from their decision to pursue internationally recognized product standards. Rather than focusing solely on local customers, they invested in certifications that would allow them to serve export markets. These standards did more than satisfy technical requirements. They helped demonstrate product quality and reliability, which made it easier for customers to trust a relatively new supplier.

“When we started the company in 1989, we didn't start production immediately because we had to buy the machine,” Villanueva says. “The company was just incorporated in 1989. So we had to buy the machine, and finally, when the machine arrived in June 1990, we started production.

“So we were sending out samples, trying to convince our clients to try them kasi you know that industry, it's not easy to convince a wire manufacturer to use a new product. Kasi mahal yung tanso eh. Pag hindi pwede, sayang pati yung tanso nila.

“We were trying to penetrate the market was difficult, of course, because we were newcomers. At kalaban mo was my former company, malaki yun eh so tiyaga lang. We were trying to educate the market because we wanted to make a better product. That's what we did. We tried to convince our clients to use our product at a competitive price, because we could not simply price it like our competitor.

“Actually, I ran the operation. Tapos si Nick, he ran our treasury. Tita was the controller. So tatlo lang kami.”

“Si Walter was our adviser lang, because when we started because we still had the lumber business, where we produce finished products that cater to the local markets.,” Perez says. “Yung mga moldings, flooring, baseboard, door jambs, we produced those, so si Walter was concentrated sa lumber business. At ako naman, lumber part-time, part-time din sa Crown.

“In the beginning, the struggle was that it was basically a one-man team,” Villanueva adds. “At that time, I didn't worry about the money because Tita took care of it. I just had to take care of the market, sell the product, and handle production, logistics, and purchasing. Kasi maliit lang eh. It was only a small operation, so kayang-kaya naman eh.

“The breakthrough came during the Iraq War. Yun time when Saddam Hussein invaded Kuwait and there was talk about oil going up almost to $100 per barrel. That time, oil was only 20-something lang yata. So nag-panic yung ibang kliyente na baka mawalan sila ng supply. So nakabenta ako.

“Yung time na yun, hindi naman lumakas agad yung business, but at least they were willing to try, and they were trying us agad as an alternative. And I was able to secure some orders as well. And I had materials in the warehouse that were at lower cost kasi at that time, pati materials tumaas eh.

“So yung normally, yung trial period would be at least six months to one year bago ma-clear. Eh, six months to one year maghihintay ka. Pero at that time, mga four months lang, ok na, so we were able to slowly build up the business.

“And then after two or three years, we started exploring the export market through indirect exports. The next breakthrough came when we got to know a Taiwanese firm that had set up a company in the Philippines manufacturing cables for export to the US. Before we could sell to them, however, our product had to be UL listed. UL stands for Underwriters Laboratories which is a global safety science and certification company, kasi if you export wires like this, it has to be UL listed in the USA eh. UL listed dapat yung finished product mo, but before your finished product can be listed, you also have to use UL-listed materials.

“So this owner, this Taiwanese who frequently visited Manila for their operations, wanted to localize their purchase of materials for better logistics. At that time, we were able to use their plant to produce wires using our materials. Because of that, we were able to secure approval frrom UL. We were the first to produce a finished product that’s UL listed. It was a major breakthrough. Every other year, we were buying new machines just to cater to the export market, and we were earning dollars. Yun ang maganda.”

Many entrepreneurs focus on finding entirely new markets, but they often overlook opportunities that already exist within their current customer base. Existing customers already know the company, trust its products, and have established purchasing relationships. Selling an additional product to an existing customer is usually far less expensive than acquiring a completely new customer.

By introducing related products or services, a company can generate more revenue without having to recreate these capabilities from scratch. This often results in higher returns on investment and faster growth.

Creating new revenue streams also reduces dependence on a single product. Expanding into adjacent opportunities creates multiple sources of revenue and makes the business more resilient during difficult periods.

Opportunities within an existing business are often easier to identify than opportunities in unfamiliar industries. Because a company already understands its customers' needs, pain points, and purchasing behavior, it is in a better position to develop products and services that customers are likely to buy.

This is why some of the most valuable growth opportunities are found not by looking outward, but by looking more closely at the customers a business already serves. They are discovered by asking a simple question: What else do our existing customers need that we are already capable of providing?

Walter Villanueva recognized that their lumber business with Nick Perez had already developed relationships with dealers, contractors, and distributors serving the construction industry. These customers were purchasing lumber products, but they also needed a variety of other construction materials. Rather than building a new distribution network for Crown from scratch, Villanueva saw an opportunity to introduce pipe products through channels that already existed.

This significantly reduced the risk associated with entering a new business. One of the biggest challenges facing any new product is finding customers and establishing distribution. Villanueva effectively solved part of that problem before the pipe business even began. The warehouses in Roosevelt and Cavite, the dealer network, the logistics system, and the market knowledge developed through the lumber business all became assets that could support the new venture.

Another lesson is that Villanueva did not stop after launching a single pipe product. Many businesses successfully introduce one new product but fail to expand beyond it. Villanueva used the corrugated pipe as a platform rather than a destination. Once the company established a presence in the market, it gradually expanded into electrical pipes, sanitary pipes, potable water pipes, pressure pipes, HDPE pipes, fittings, roofing products, and other related categories. Each new product increased the value of existing customer relationships and strengthened the company's position in the market.

“So after that, eh kasi, we were supplying local lumber,” Perez says. “So in lumber kasi, we just deliver one truckload and put the lumber and the pipes on top.”

“Then si Walter came up with the idea, ‘Why don't we produce pipes?” Villanueva adds. “So we talked to a supplier, a Singaporean, and asked about the machine that he represented, which was a German machine. So we bought that German machine and started with corrugated pipes first.

“Yun lang yung sinabi ni Walter because they already had the marketing and the sales network with these dealers. In a way parang ganon, kilala na yung merkado.”

“We had a warehouse on Roosevelt Ave,” Perez says. “So from the Valenzuela plant, lumber was delivered to Roosevelt and also to one in Cavite, Aguinaldo, and we also distributed Crown pipes there. Parang isang warehouse, pickup center.

“Actually, we started the pipe business in 1999, pero it was under Eugene. But I think Eugene was too busy na that time, parang overloaded na sa compound, so Walter took over the pipe division.

“So the pipe business started with just one product. Corrugated pipes, then electrical pipes, then sanitary pipes, then potable water pipes, then pressure pipes. Now HDPE pipes.”

“Walter was a visionary,” Villanueva says. “Even at a young age, he was already into buying and selling, parang nagpa-part-time na sya. Kasi yung family namin, my dad was a doctor. My eldest brother is a doctor. I wanted to be a doctor as well. Sya lang yung gusto sa business. So at an early age, yun na yung track ng kanyang career. So he was expanding the pipe business while I concentrated on the chemical business.

“I think in 2 to 3 years, lumalampas na yung sales ng pipe sa sa chemical compound, because of the additional products kasi marami na yung produkto eh. From one product dati, ngayon it's the whole range. Pati yung mga fittings and everything.

After that, he became chairman. And when I retired, he took over the presidency. He was the chairman of the board tapos he’s also the general manager of the Pipe division.”

In many industries, customers are not simply buying a product. They are buying confidence that the product will perform as expected. When a company develops a reputation for quality, customers become more willing to choose its products, even when cheaper alternatives are available.

Businesses that compete primarily on price often face shrinking margins because competitors can always lower prices further. Companies known for quality, however, can justify premium pricing because customers perceive additional value in the product. This allows them to protect profitability while avoiding destructive price wars.

If customers consistently have positive experiences with a product, they are less likely to switch to competitors. Over time, this loyalty can become a significant competitive advantage because retaining customers is generally less expensive than constantly acquiring new ones.

In business-to-business markets, quality is often even more important. A defective component can disrupt production, increase costs, damage equipment, or affect the quality of the customer's own products. As a result, many industrial buyers are willing to pay more for suppliers they trust. In such cases, quality becomes not just a product feature but a risk-management tool for customers.

Eugene Villanueva recognized that quality is most effective when it solves a real customer problem. The decision to use UV stabilizers was not innovation for its own sake. Outdoor pipes are exposed to sunlight and environmental conditions that can accelerate deterioration.

By introducing UV protection, the company was addressing a specific concern faced by customers. This transformed quality from a generic marketing claim into a measurable product benefit. Customers were not simply being told that the pipes were better. They were being shown why they would last longer.

Villanueva also treated quality as a system rather than a feature. Many companies focus on a single aspect of quality while neglecting other parts of the production process. Villanueva emphasized the use of virgin raw materials and modern machinery. Each element reinforced the others.

More importantly, he viewed quality as an investment rather than a cost. Using virgin materials and maintaining manufacturing standards likely increased expenses in the short term. However, these investments helped create a reputation that differentiated the company from lower-priced competitors. Over time, that reputation became an asset that supported customer trust and brand recognition.

This strategy allowed the company to avoid competing solely on price. Villanueva recognized that some manufacturers relied heavily on recycled materials to reduce costs. Rather than joining that segment of the market, he chose to differentiate the company through quality.

“Si Walter came up with the name Crown Asia, because one of our biggest lumber buyers in Denmark had ‘Crown’ as part of its name,” Villanueva says. “Kaya lang when we tried to register ‘Crown,’ marami na raw Crown. That's why we added Asia. So siguro kay Walter, Crown was a good brand name. Parang hari.

“Because we had a new brand, we needed market awareness. We needed consumers to know about our pipes. So that's the first thing we did. Kapag hindi ka kilala, then they will not be looking for your product, or even the dealers, they will not want to carry your product.

“So nag-advertise kami sa TV, like PBA, ganito, even Pacquiao. We also sponsored UAP chapters, we had connections with architects, and spent time with architects. Before, kaming dalawa ni Walter, we had to entertain mga architects eh.

“When we sponsored events, we had a budget for that, so we knew how much we would spend. We didn't really measure the results. Wala kaming kino-compute na percentage. It's more like, what's the need? What kind of marketing tool do we need, or how are we going to market through media?”

“Sometimes yung mga ibang group would approach us for sponsorship pero we would just say, ah this is not useful, worthless. We reject the offer.

“That's the work of our marketing people, so every time there's an event that we sponsor, they will be there with our banner and everything, with our brochures, and they will introduce the company.

“We were also among the first to say that we put UV chemicals in our pipes. Because a lot of these sanitary pipes are installed outdoors diba? So they are subject to degradation. So we tell them that with our UV-stabilized pipes, they can last longer. Hindi madaling masira.

“We also tell our clients that we use 100 percent virgin material. Plastics are very heat-sensitive eh. Every time they go through a heat cycle, they deteriorate. Of course, we use state-of-the-art machinery to produce these pipes. ISO certified.

“Kasi sa industry, there are many tiers. Meron kang high tier, but you also have yung mga puro scrap lang yung ginagamit. Maraming ganon eh. We don't compete with that tier. And even when we started the pipe business, that was always our selling point. We wanted customers to buy quality pipes. Not cheap prices. Not cheap pipes.”

Many founders spend decades building successful businesses, but if the next generation is unprepared, much of that value can be lost within a few years. Leadership succession is not simply about transferring ownership. It involves transferring knowledge, relationships and an understanding of the company's culture and values.

Leadership capability cannot be developed overnight. Future leaders need time to gain experience, make mistakes and understand how the business operates. By involving successors early and gradually increasing their responsibilities, family businesses can reduce the disruption that often accompanies leadership transitions.

As industries evolve, younger leaders often possess new perspectives and different management approaches. When succession is managed properly, the business can combine the wisdom of the previous generation with the energy and ideas of the next.

The process also helps identify whether potential successors genuinely have the interest and capability to lead. Not every family member wants to run a business, and not every family member is suited for leadership. Giving future leaders exposure to different roles and responsibilities allows both the family and the successor to assess whether leadership is the right fit.

A good example is Derrick Villanueva, the only son of Walter Villanueva. Derrick joined the company more than a decade before becoming president. Before entering the business, Walter sent him to Canada to learn about plastics and PVC.

The founders did not believe family ties alone were sufficient preparation for leadership. Nick Perez's son was also required to work outside the family business before being allowed to join. This suggests that the founders wanted the next generation to develop skills and perspectives beyond what could be learned within the company itself. By gaining exposure to external environments, future leaders could bring back new knowledge while also establishing credibility based on competence rather than family connections.

The founders also tied leadership development to operational responsibility. Derrick did not immediately assume the presidency. He first managed a business unit and gradually took on greater responsibilities within the organization. Nick's son similarly handled another product segment. Rather than learning leadership through observation alone, they learned by managing real operations and making decisions with real consequences.

The effectiveness of this approach became evident after Walter Villanueva passed away in 2025. By that time, Derrick had already spent many years inside the business and had experience managing a division. As a result, the leadership transition was not a sudden handover to an untested successor. The company was able to elevate someone who had already been preparing for the role for years.

Even after Derrick became president, Perez continued providing guidance on management and capital allocation decisions. The relationship evolved from one of direct supervision to one of mentorship.

This shows an important principle of succession planning. Leadership transitions are often more successful when knowledge is transferred gradually rather than abruptly. The next generation gains decision-making authority while still benefiting from the experience of those who built the business.

 “Sa Crown, sometimes we disagree with certain policies or proposals, and then we worke out a solution,” Perez says. “Sa amin naman, when it came to investments, sometimes si Walter would propose investing in something. We discussed it, and when the majority disapproved, we dropped the idea. We are democratic.

“Before we had this execom, we would have a discussion and then an argument. Okay, so this is the proposal. Who is in favor? Who is not? Kung talagang the majority said, ‘Oh, this is not workable,’ then we would either reject it or just follow a different policy. Basta we respect the decision.

“Kasi si Walter, example, nagka-argue kayo? After that, no problem na. Syempre kunyari he would explain his side, I would explain my side, whoever would speak. So syempre yung iba would either support yung argument nya, at yung iba would support mine. Tapos magvo-vote na lang. Ganon kami.

“Actually meron din kaming Family Constitution eh, right before yung IPO namin. Para at least, there was an agreement. Everybody signed that constitution.

“Actually Walter’s child, his only son, Derrick, has been involved with the company already for 14 years now. After Derrick graduated from college, Walter sent him to Canada to learn about plastics and PVC for two years. Derrick was the manager of the electrical pipes division. My son was in the other division, the HDPE and PPR side. Ngayon, when Walter passed away, Derrick took over the presidency.

“My son, 12 years na. Nandon na sila. Yung son ko naman, hindi sya pumayag na after graduation, pasok agad. Two years muna. He had to work outside for two years before joining us.

“Si Derrick as President is mas calm, pero sa totoo, mas strict si Walter. So sometimes I would tell Derrick, okay, you should be strict on this, and that. Hindi pwedeng basta-basta, okay ng okay, pirma ka ng pirma. So binabago ko yung approach nya, kasi chairman lang ako, sya naman yung nasa operations. Since sya yung president eh.

“When it comes to money, ako ang nagma-manage. Sometimes sasabihin nya "Okay, pwede ba tayong mag-invest dito? Bibili tayo nito?" Sabihin ko hindi pwede. I think it's not worth it. I would say, pag hindi ok, like hindi maganda, mahal.

“For example, sa car. Sasabihin nya, ‘Oo, bibili tayo ng ganito.’ Sabi ko, I think it's better to buy a Toyota na lang. Mas mura. Example lang yon ah. Mura ang parts, mas mabilis ang maintenance. If you buy European cars, they don't necessarily raise the value. Something like that. I would advise what is best para sa company namin.

“In our family business, only the son is allowed to be actively involved. Let's say pumasok ang son ko. My daughter-in-law should not be involved. Usually ganito kami, just the son. Even my wife cannot come in.

“That's how we do it, except for those people who don't have a son. Papasok daughters, maybe some son-in-law. Kahit sa, I know somebody whose son-in-law is handling the business of his father-in-law kasi walang son eh. Daughter lang.”

Henry Ong, RFP, is an entrepreneur, financial planning advocate and business advisor. Email Henry for business advice [email protected] or follow him on X (Twitter) @henryong888.