A Feasibility Study for Investment in an Ice Factory in Kuchinarai District, Kalasin Province

Abstract

This study examines the feasibility of establishing an ice factory in Kuchinarai District, Thailand, in response to the increasing demand for ice consumption caused by the region's hot weather. The research focuses on four key aspects: marketing, technical, management, and financial feasibility. To assess the marketing feasibility, a survey was conducted with 400 shop operators. The technical analysis involved evaluating suitable locations and machines and obtaining necessary permits. The management aspect was assessed using the Principles of Organizational Management (POSDC), while the financial aspect considered investment evaluation, net worth calculation, internal rate of return, and payback period. The results of the marketing feasibility survey revealed that 96% of shops expressed interest in utilizing the service. Key factors contributing to the business feasibility included the cleanliness of the ice as a product, transparent pricing, effective ice delivery to shops, promotional offers, positive employee relations, prompt delivery processes, sufficient parking facilities, and a location near the community. Regarding management feasibility, it was recommended to maintain a streamlined organizational structure, employ personnel residing in proximity to the ice factory, and emphasize customer service and interpersonal skills. For financial feasibility, a total investment budget of approximately 30,000,000 Baht was proposed. The project demonstrated a net present value of 3,006,476 Baht over a five-year period, an internal rate of return of 11%, and a payback period of four years and two months. These financial indicators align with the investor's requirement of a payback period not exceeding five years. Based on the results of the study, the project is both feasible and attractive for investment.