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Transcript of THAI-NORTH RUBBER INDUSTRY CO. LTD
Project Feasibility Study
Thai-North Rubber Industry Co., Ltd.
Lee La Wa Dee Group Mae Fah Luang University, Thailand
THAI-NORTH RUBBER INDUSTRY CO., LTD
To Lecturers: Mr. Chaiyawat Thongintr
Module: 1203302 – Project Feasibility Study Evaluation 2010
Semester: 2, 2010/2011
Department: Business Administration
Class Roster – 1203302_Sec 01
By: Lee La Wa Dee Group
1. Miss Jaruwan Muangpang ID: 5031203014
2. Miss Chanida Ploddee ID: 5031203019
3. Miss Chutinard Kunmaneelert ID: 5031203021
4. Miss Ponphan Kong-iam ID: 5031203047
5. Miss Rattanaporn Mekthrong ID: 5031203057
Credits and acknowledgments borrowed from other sources,
with permission, in this project appear on appropriate page within text.
THAI-NORTH RUBBER INDUSTRY CO., LTD
The Purpose of this project is to explain how to make the business plan of Thai-North Rubber Industry Company Limited to be feasibility for study and evaluation in subject of Project Feasibility Study Evaluation 2010 (1203302).
By Lee La Wa Dee Group we are students of Mae Fah Luang University, We study and operation this business plan to be close possibility. The information that we use to support this project can practically.
This Project is organized into 7 Chapters. Chapter 1 Introduction, Chapter 2 Industry Profile Chapter 3 Market Feasibility Study, Chapter 4 Technical Operation Feasibility Study, Chapter 5 Financial Analysis, Chapter 6 Risk Management and Final Chapter Summary
Student or entrepreneur who interest about rubber business or rubber industry in Thailand and have the group of customers in China should read this project We hope the reader will get the benefit from this project.
This project will not happen if we don’t have supported by Mr. Chaiyawat Thongintr the Lecturers of Project Feasibility Study Evaluation, Business Administration department, Mae Fah Lunag University, Thailand
PREFACE
Chapter 1 Introduction 1
1.1 Background and significant of the project 2 1.2 Objective 3 1.3 Benefits of this Study 3 1.4 Brand of our company 4 1.5 Activities and Gantt chart 4
Chapter 2 Industry Profile 5
2.1 Nature of Industry 6 2.1.1 History of rubber in Europe 6 2.1.2 History of rubber in Asian 8 2.1.3 History of rubber in Thailand 9 2.1.4 History of rubber in China 10
2.2 Situation of Industry 11 2.2.1 Rubber Industry in the World 11 2.2.2 Rubber Industry in Asia 16
2.2.3 Rubber Industry in Thailand 18 2.2.4 Rubber Industry in China 25
2.3 Summary of Market value 27 2.3.1 Industry and rubber products 27 2.3.2 Vision of our organization 28 2.3.3 Mission of our organization 28 2.3.4 Strategy 29
Chapter 3 Market Feasibility Study 31
3.1 Market Analysis 32 3.1.1 General Environment Analysis 32 3.1.2 PES Analysis 36 3.1.3 Competition Analysis 44
3.2 STP analysis 49 3.2.1 Market segment 49
3.2.2 Market Target 49 3.2.3Positioning 51
3.3 Marketing Mix Strategy 53 3.3.1 Product 53 3.3.2 Price 54 3.3.3 Place 54 3.3.4 Promotion 60
3.4 Sale Forecast/Profit estimate 62 3.5 Marketing Expend Budget 73
TABLE OF CONTENTS
Chapter 4 Technical Operation Feasibility Study 78
4.1 Product Characteristic 79 4.1.1 Rubber Smoked Sheets (RSS) 79 4.1.2 Block Rubber 83
4.2 Cost of good 86 4.3 Pricing product 87 4.4 Preopening cost 89
4.4.1 Cost of request Electric and Water 89 4.4.2 Prepare to be company limited 91 4.4.3 Fees for the establishment of the factory 92 4.4.4 Land Tax 92 4.4.5 Tax labels (per 500 square centimeters) 93 4.4.6 Trademark registration fee. 94 4.4.7 Total Cost of Pre Opening Cost 94
4.5 Operating investment cost /Operating expense 95 4.5.1 Land 95 4.5.2 Building 95 4.5.3 Features and Dimension 96 4.5.4 Operating investment cost 98 4.5.5 Production cost 100
4.6 Logistics and Transportation cost 107 4.6.1 Logistic Management 107 4.6.2 Inventory management 109 4.6.3 Total Logistic 111
4.7 Administration cost 117 4.7.1 Organizational structure 117 4.7.2 Administration Expense 118 4.7.3 Administration Zone 118
4.8 Depreciation 129 4.9 Conclusion 139
Chapter 5 Financial Analysis 141
5.1 Financial Statement 142 5.1.1 Total requirement and the source fund 142 5.1.2 Income statement 147 5.1.3 Balance Sheet 150 5.1.4 Cash Flow Statements 155 5.1.5 Loan 159 5.1.6 Total Sale 160
5.2 Investment Criteria 161 5.3.1 NPV (net present value) 161 5.3.2 IRR 161 5.3.3 Payback period 162 5.3.4 Break-event point 163
Table of Contents v
Chapter 6 Risk Management 164
6.1 Internal Analysis 165 6.1.1 Human resource 165 6.1.2 The limits of the employee 166
6.1.3 Changing operating environment 166 6.1.4 Health and Safety 166
6.2 External Analysis 167 6.2.1 Political Factor 167 6.2.2 Economic Factor 167 6.2.3 Technological Factor 170
Chapter 7 Conclusion 173
Reference
Appendix
vii Table of Contents
Exclusive summary
Rubber Industry is an issue of Business concern to most Asia, and has been in the
public conversation nearly every day for years. According to rubberword.com- show the
positive growth rates in world rubber consumption of 8.8 percent and 5.1 percent are
expected for 2010 and 2011, respectively. And the total combined NR and SR consumption
and production, has and will be increasingly dominated by Asian countries. In China, the
number increasing in demand of rubber from 2007 there are 2.754 million tons to be 3.353
million tons in 2010. Increase 10% within 4 years. Thailand's largest rubber exports to China,
most with 54 % of the export value of rubber. Rubber Research Institute of Thailand, Said
that rubber is one of the crops that are important to the economy of Thailand. Today Thailand
has rubber plantation area by about 15 million hectares of rubber growing areas to support the
demand that increasing.
Lee La Wa Dee group saw this opportunity and we establish Thai-North Rubber
Industry co., ltd. to study in subject of Project Feasibility study and Evaluation 2010, Mae
Fah Luang University. The Purpose of this project is to explain how to make the business
plan of Thai-North Rubber Industry Company Limited to be feasibility for study and
evaluation, in term of processing rubber industry.
Our group we study and evaluated this project start with Introduction, Industry
Profile, Market Feasibility Study, Technical Operation Feasibility Study, Financial Analysis,
Risk Management and Final Summary.
Thai-North Rubber has a strong in the financial status that also represent in the ratio
analysis, although we have the many risk which is the economical risk, political risk,
operating risk and etc., it can be acceptable because we also cope with this risk from using
the risk management.
P a g e | 1
Chapter 1
Introduction
P a g e | 2
This chapter explains about overall of project. There are background and significant,
objective, benefit, activity and timework, and brand of our company. You will see why we do
this project from this chapter.
Our project is a rubber industry which has processing rubber which Rubber Smoked
Sheet (RSS) and Block Rubber to respond the higher demand in market. Chiang Rai is a
possible for our business to make high profit and easy to growth in the North of Thailand.
For the Northern of Thailand especially in Chiang Rai, Rubber plantation is just the
beginning and trends to increased as well. Although with some privates to processing rubber
are only a few cases to invest, the number of rubber plantations growing a huge leap. Chiang
Rai has rubber-largest cities deputy from Songkhla, Surat Thani, Nakhon Si Thammarat, and
Trang, the total of rubber plantation with 18 districts in Chiang Rai up to 347,857 rai and are
likely to increase much more. For the market is not worry because in Thailand is most
focusing and government support on exports to China reached 39%. Chiang Rai also has the
ability to export to South of China via R3A Road, Chiang Khong - Huai Sai, Bo Kaew
Kwang, Luang Namtha and Lao PDR - Yun Nan province distance just only 250 km and
office of the Rubber Replanting Aid Fund is planning to set additional offices at the port’s
Chiang Khong to facilitate for export rubber to the South of China. And now, Chiang Rai
doesn’t have enough of factory to processing plant and we believe that it has both a large
source of latex and the major export. That is why; we decide to take this advantage of rubber
in Chiang Rai to study the feasibility of this project.
(Source: http://www.manager.co.th/Local/ViewNews.aspx?NewsID=9530000131252 )
Background and significant of the project
Overview of Project Feasibility
1.1
P a g e | 3
1.2.1 To enhance knowledge and understanding about analyzing the market feasibility
of Rubber industry in Chiang Rai province, Thailand.
1.2.2 To study operation and the distribution channel of Rubber industry for export
products to China.
1.2.3 To study about consumer behavior of Rubber industry in China.
1.2.4To education approaches and management strategies of Rubber industry
business.
1.2.5 To study the feasibility of investment Rubber industry business in Thailand.
1.3.1 Know more about the market of Rubber industry business in Thailand.
1.3.2 Know more about consumer behavior of Rubber industry in China.
1.3.3 Get experience from doing this project (management strategies, team work,
solving problem, etc)
1.3.4 Can be applied to real investment.
1.3.5 Know more about operation and distribution channel of Rubber industry for
export products to China.
Objective
Benefits of this Study
1.2
1.3
P a g e | 4
1.4.1 Our company name is “Thai-North Rubber”
1.4.2 Logo is
Activities
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Prepare for topic submission
Introduction path
Nature of industry
Situation of industry
Summary of market value
Marketing analysis PEST,3C,
STP
Marketing mix strategy
Sale forecast
Marketing expense
Technical Feasibility study
Finance statement
Finance analysis
Risk analysis
Summary all of them
Prepare draft final report
Prepare final report
Prepare group presentation
Activities and Gantt chart
1.4 Brand of our company
1.5
Logo of Thai-North Rubber Company
EXHIBIT 1-1 Activities and Gantt chart
P a g e | 5
Chapter 2
Industry Profile
P a g e | 6
Name: A rubber.
Common name in English: Para rubber.
Scientific name: Hevea Braslilensis.
Family name: EUPHORBICEAE.
Code HS (Harmonized System): 4001.10.0000 Natural
rubber latex, 4001.21.0000 Smoked sheets, 4001.22.0000
technically specified natural rubber (TSNR), 4001.29.0000
other.
Rubber is one of the crops that are important to the economy of Thailand for long
time. In 2001 November, rubber is high of economic value with 162,955 million Baht.
Consists of the export value of raw materials are 58,703 million baht, value of rubber
products 48,495 million baht and wood products worth 55,757 million baht. Today, Thailand
has rubber plantation area by about 15 million hectares of rubber growing areas of southern
most Followed by the East Central region included. Northeast and North have a total of 60
provinces. A province the most rubber growing areas is Surat Thani.
2.1.1 History of rubber in Europe
Where does rubber come from?
The hevea tree - hevea brasiliensis - is originating from Brazil. It was exploited in the
wild state there till the beginning of the XXth century. When a tree matures at the age of 6 or
7 years, the latex is collected from a diagonal incision in the tree trunk i.e. the tapping
process. This action does not affect the health of the tree and the tree wound later heals itself.
On the other hand, the hévéaculture developed from the end of the XIXth century in
Southeast Asia: in 1876, seedlings of hevea were shipped to India, Ceylon, Singapore and
Java and the year after in Malaysia.Today, the production in Thailand, Indonesia and
Malaysia represents about 70 % of the world production of natural rubber.
Nature of Industry
Industry Profile
2.1
P a g e | 7
Who were the first users of rubber?
The Indians of Central and South America (Incas, Mayas, Olmecs, Aztecs, etc) are
known to have used the unique properties of rubber for religious or magical ceremonies e.g.
numerous figurines and balls made from rubber moulded were found in the heart of the
sacred wells. Indians also found the incredible propriety of waterproofing and used it for their
clothes and shoes. At the end of XVth century, Christopher Columbus was certainly the first
European assisting to the famous Aztec game with rubber balls representing the Sun, most
important Aztec god.
When was rubber first imported into Europe?
The first scientific study on rubber was realized by the French academician Charles de
la Condamine in the XVIIIth century within the framework of a mission on the South
American continent and by François Fresneau, engineer in Cayenne. In spite of the
enthusiasm of the authors for the extraordinary properties of the rubber, they will not succeed
in interesting their contemporaries in the use of this “new” substance
What are the origins of the French and English terms?
The French rubber term comes from the Indian " ca-o-tchu " word or " wood which
cries ".In England during the XVIIIth century, Joseph Priestley, best known for his discovery
of oxygen, noted that pencil marks could be "rubbed out" by the substance. From this early
use, rubber derived its name.
What were first rubber applications in Europe?
The first rubber applications date from the end of the XVIIIth century and were
mainly erasers and medical probes. Then, the rubber was used to waterproof some textiles.
The first full bandages appeared in 1834, and the first tyres not before the end of the XIXth
century.
Why 1839 is an essential date for rubber manufacturing?
Prior to 1839, the properties of rubber were dictated by the surrounding temperature.
During the hot summer, rubber was sticky and malleable, while it became hard and brittle in
P a g e | 8
the winter. This was finally remedied by the unexpected discovery of the process of
vulcanisation. A 1839 winter evening, C. Goodyear dropped accidentally a mixture of rubber,
white lead and sulphur upon a hot stove. When it was removed, the material was no longer
affected by temperature. Despite stretching, it always returned to its original shape. This
phenomenon was further called: “vulcanisation” in reference of the Roman god of fire and
metallurgy. Thanks to this discovery, it became possible to use rubber in raincoats,
overshoes, and many other products, including tyres.
(Source: http://www.etrma.org/public/activitiesrubberh.asp )
2.1.2 History of rubber in Asian
Manufacture of rubber in the world the past
year. 2443 (1900) is mostly a rubber plantation in South
American countries are Brazil, Colombia and Panama,
mostly. There are also rubber from Russia and Africa,
partly during the time before.
Rubber start is important to human life and more. World
demand for rubber has a lot of hands-stall; it has no idea if the
world (meaning Europe) still has to rely on rubber that comes from
various sources them alone. In the future, may be caused by a
shortage of rubber are likely to find that New in other parts of the
world to remove the tires planted sometime in the year 2398 (1855)
brings this idea to consult Sir Joseph Hung markers, but did not
receive much attention should the Europeans. that period.
No one knows that much rubber. What looks like rubber or even
how the tires came from the leaf until BE 0.2414 (1871) has led to
painting from Sir Joseph Yang Hung markers see, you have an
interest in planting more rubber has consulted with Sir Cliean
Siemens Markham House. Assistant Secretary-General regularly
Governor Annual India Efforts to bring rubber planting in Asia for the first time it
happened. While Tire situation in countries America quite badly with the world due to the
P a g e | 9
high demand of rubber. Rubber growers in Colombia and Panama are hard rubber tapping
exert finally rubber in that country has been hurt a lot and killed and no rubber left on the bar
again Sir Clean Siemens. Rubber was used to test varieties grown in India for the first time
but without success. Has rubber been planted in the territories. A British colony, Finally, he
found that Peninsular territory is where the rubber will grow best, and found the best varieties
of rubber tires or rubber, Hevea Brasiliensis species so since the year 2425 (1882) is a rubber.
Grow extensively in the Cape Malays in the very early stages. Rubber is grown widely in the
colonial territories of Britain and Holland are also mostly German rubber is grown on some of
Africa and some rubber in Russia because rubber is growing very popular in Asia. May be
due to Asia has the right elements to grow. The weather, soil and terrain conditions, including
rainfall labor readily available. Combine with agricultural and commercial properties of the
rubber itself as.
(Source: http://www.reothai.co.th/Para1.htm)
2.1.3 History of rubber in Thailand
Since that is also called "Siam" Estimated after the 1882.Which has expanded the
rubber from 22 tree species to in the country of Asia. In Year 1899,"Phraya
Ratsadanupraditmahitsornprakdee" is the same one “Father of rubber" is the leader to bring
the rubber tree at Amphor Kantrang, Trang province is the first. Then Phraya
Ratsadanupraditmahitsornprakdee was sent to learn how to teach people to plant rubber.
Students who are all sent to a district Chief Officer, sub district headman, village headman.
He was ordered and tires to the species distribution. Promote to the people planting. Which at
that time the people bring to plant and have expanding the rubber plant area into the south in
14 province. Since Chumporn province was border province. Thailand has a planted area of
rubber and the country about 12 million rai. Disperse in the South East and Northeast. Which
is a growing source of new and industrial rubber country? Thailand is a manufacturer and
exporter of rubber most of the world. Every time the government has focused on the
development of rubber has always been. There are set up more responsibility in the research,
development and technology transfer. Including funding assistance instead planted with
rubber.
P a g e | 10
2.1.4 History of rubber in China
For over a century, rubber production has been one of China's most profitable
industries. In spite of ups and downs over the last hundred years, China is currently one of the
world's leading rubber distributors.
The Rubber Boom
In the early 1900s, a new process for rubber extraction in China allowed for a higher
yield over an extended time, marking the beginning of the rubber industry in China. (Ref 1
section 3 paragraph 2 and 3) By 1910, with the popularization of bicycles and the emerging
automobile industry, increasing demand for rubber tires led to China's "Rubber Boom."
A Struggling Economy
In the 1930s, the Great Depression caused the global economy to stagnate. For the
next several decades, China's economy struggled as the country faced civil war, famine and
unstable government. During the 1970s and 1980s, however, industry reform, foreign
investment and relaxed industrial restrictions allowed the economy to grow rapidly. The
rubber industry was on its way to thriving once again.
Into the 21st Century
Since 1990, rubber consumption has risen steadily. By 2004, China was the largest
producer of shoes and a leading exporter of tires. China's rubber industry boomed,
domestically and abroad, producing over 50,000 rubber products. China's economy was
ranked second worldwide in 2010, and is expected to rise to first place by 2030, as its rubber
industry continues to thrive.
(Source: http://www.ehow.com/facts_6920005_history-rubber-manufacturing-industry-
china.html )
Read more: History of the Rubber Manufacturing Industry in China | eHow.com
http://www.ehow.com/facts_6920005_history-rubber-manufacturing-industry-
china.html#ixzz179k8k7AY
P a g e | 11
2.2.1 Rubber Industry in the World
2.2.1.1 Overview of the Rubber Market, 1870-1930
Natural rubber was first used by the indigenous peoples of the Amazon basin for a
variety of purposes. By the middle of the eighteenth century, Europeans had begun to
experiment with rubber as a waterproofing agent. In the early nineteenth century, rubber was
used to make waterproof shoes (Dean, 1987). The best source of latex, the milky flui1d from
which natural rubber products were made, was hevea brasiliensis, which grew predominantly
in the Brazilian Amazon (but also in the Amazonian regions of Bolivia and Peru). Thus, by
geographical accident, the first period of rubber’s commercial history, from the late 1700s
through 1900, was centered in Brazil; the second period, from roughly 1910 on, was
increasingly centered in East Asia as the result of plantation development. The first century
of rubber was typified by relatively low levels of production, high wages, and very high
prices; the period following 1910 was one of rapidly increasing production, low wages, and
falling prices.
Uses of Rubber
The early uses of the material were quite limited. Initially the problem of natural
rubber was its sensitivity to temperature changes, which altered its shape and consistency. In
1839 Charles Goodyear improved the process called vulcanization, which modified rubber so
that it would support extreme temperatures. It was then that natural rubber became suitable
for producing hoses, tires, industrial bands, sheets, shoes, shoe soles, and other products.
What initially caused the beginning of the “Rubber Boom,” however, was the popularization
of the bicycle. The boom would then be accentuated after 1900 by the development of the
automobile industry and the expansion of the tire industry to produce car tires (Weinstein,
1983; Dean 1987).
Situation of Industry 2.2
P a g e | 12
Exporting Rubber
From the ports, rubber was in the hands of mainly Brazilian, British and American
exporters. Contrary to what Weinstein (1983) argued, Brazilian producers or local merchants
from the interior could choose whether to send the rubber on consignment to a New York
commission house, rather than selling it to a exporter in the Amazon (Shelley, 1918). Rubber
was taken, like other commodities, to ports in Europe and the US to be distributed to the
industries that bought large amounts of the product in the London or New York commodities
exchanges. A large part of rubber produced was traded at these exchanges, but tire
manufacturers and other large consumers also made direct purchases from the distributors in
the country of origin.
Figure 2-1 Production and Prices 1900-1935
P a g e | 13
Conclusion
The natural rubber trade underwent several radical transformations over the period
1870 to 1930. First, prior to 1910, it was associated with high costs of production and high
prices for final goods; most rubber was produced, during this period, by tapping rubber trees
in the Amazon region of Brazil. After 1900, and especially after 1910, rubber was
increasingly produced on low-cost plantations in Southeast Asia. The price of rubber fell
with plantation development and, at the same time, the volume of rubber demanded by car
tire manufacturers expanded dramatically. Uncertainty, in terms of both supply and demand,
Figure 2-2 World Rubber Production and Consumption, 1900-1930
Figure 2-3 Rubber production and imports, 1870-1899
P a g e | 14
(often driven by changing tire technology) meant that natural rubber producers and tire
manufacturers both experienced great volatility in returns. The overall evolution of the
natural rubber trade and the related tire manufacture industry was toward large volume, low-
cost production in an internationally competitive environment marked by commodity price
volatility and declining levels of profit as the industry matured.
(Source: http://eh.net/encyclopedia/article/frank.international.rubber.market)
2.2.1.2 Natural Rubber Supply And Demand Forecast and Price Outlook
The Rubber Economist Ltd. expects that the trough of total world rubber consumption
may not hit bottom until the end of 2009. This means the decline this year, which is forecast
at -9.6 percent, will be even worse than last year and the worst since 1942. Rubber forecasts
have been scaled down steadily since the second half of last year. A fall off in 2009 is
expected for most countries. However, the sharp decline globally depends significantly on the
performance of China, which is expected to show a recovery in the second half of this year to
show a positive growth by the end of the year. However, positive growth rates in world
rubber consumption of 8.8 percent and 5.1 percent are expected for 2010 and 2011,
respectively. Despite a return of a sharp growth rate, the average annual growth rate for 2009-
2011 will only reach 1.0 percent, and much of the growth will mainly be in Asia/Pacific. This
means rubber consumption may only rise to 22.97 million metric tons in 2011, which is lower
than that of 23.04 million metric tons in 2007. Consumption of natural rubber (NR) is
expected to show a sharper increase than for synthetic rubber (SR), i.e., an annual growth rate
of 1.1 percent and 0.9 percent, respectively. The relatively lower price of NR when compared
with SR helped to increase NR shares last year and is expected to do so again this year before
the trend reverses in 2010 and 2011. Hence the world percentage of SR is forecast to decline
only marginally to 56.2 percent by 2011 as compared to 56.3 percent in 2008. The increasing
SR shares in Europe will balance out the decline in North America, leaving the world share
relatively stable. Despite a slowdown in demand, NR output is expected to continue to
increase by an average of 1.1 percent over the next three year period. The growth rate,
particularly in major producing countries, may be a lot lower than during recent years;
however, the relatively fast increase in production in Indonesia means it will move to a closer
position to overtake Thailand as the number one producing country. The continued increase
P a g e | 15
in production in India will also mean it may overtake Malaysia to become the third largest
NR producer by 2011. Despite weaker prices than the first half of 2008, many smaller
producing countries may find the price levels profitable enough with their lower cost of
production. The steady rise in rubber prices since 2002 has resulted in an increase in new
planting during this period in many smaller producing countries, which have lower price
elasticity than the major producing countries. Unlike NR, many SR consumers are also
producers, allowing them some flexibility. Hence, SR output is forecast to show a marginal
decline by only -0.2 percent/year. Furthermore, there may be an increase of SR output in Asia
in relation to other regions. The continued increase in rubber output in China means it may
overtake Thailand as the largest rubber, NR plus SR, supplier. The world rubber economy,
i.e., the total combined NR and SR consumption and production, has and will be increasingly
dominated by Asian countries. In 2008, Asian countries comprised 7 of the 10 largest rubber
economies. Furthermore, by 2011 Indonesia will overtake Japan for fourth place behind
China, the USA and Thailand. A sharp slowdown in demand in relation to supply means NR
stocks may continue to increase during the next few years. Compared to NR, SR stocks have
and will continue to rise steadily, but not so sharply. Our forecasts indicate that the SR stocks
to consumption ratio, which may increase relatively sharply in 2009 before a fall, will leave
only a slight increase for the following three year period. This is in contrast to the global
consumption to stock ratio for NR, which is expected to increase from less than three months
to four months, a return to the level reached in 2000. Despite the rising stocks both in
absolute terms and relative to consumption, NR prices may increase during 2009-2011. The
important assumption is that the exchange rate of US$ to SDR will gradually weaken during
this period. The change in the value of the U.S. dollar can influence both consumers and
producers. In general, a weaker U.S. dollar results in higher commodity prices and vice versa.
This certainly is true for NR, and in particular in 2008 when the U.S. dollar weakened in July,
whereas previously it had been appreciating sharply against many currencies. So far in 2009,
US$ has been fluctuating around a gradual depreciation trend, hence prices have been
relatively stable, but show a gradual rise from the trough reached last December. In
conclusion, after six years of growth, rubber consumption declined in 2008 and is expected to
fall further this year. Even though a rise is expected in 2010 and 2011, growth may only
reach 1 percent a year. Despite a slowdown in demand, NR output is expected to continue to
increase. SR suppliers can simply turn off the tap as demand slows and hence there will be a
gradual rise in stocks. Despite declining sharply in the second half, NR prices rose to a record
P a g e | 16
high in 2008. Rising stocks will have a negative impact on NR prices, but they may not
decline as much if the U.S. dollar is weakened.
(Source: http://www.rubberworld.com/RWmarket_report.asp?id=287)
2.2.2 Rubber Industry in Asia
2.2.2.1 Rubber trends
Worldwide synthetic rubber consumption reached 10.4 million metric tons in 1998,
according to the International Institute for Synthetic Rubber Producers (IISRP). In the
aftermath of the Asian financial crisis and as a result of sluggish demand in the automotive
sector, world synthetic rubber consumption remained flat at best and by some industry
estimates decreased 1.4 percent in 1998 after 3 consecutive years of gains. Asia continued to
experience the aftermath of the economic crisis that hit in 1997. In 1998, Asia decreased
synthetic rubber consumption 8.3 percent to 3.2 million metric tons. China experienced a
decrease in consumption of 0.8 percent, a substantial drop for a country that has consistently
enjoyed growth between 7 and 10 percent.
So
urce: Trade Stats Express, 2008
Figure 2-4 Rubber production – U.S. Imports from Asia
P a g e | 17
With regard to growth by elastomeric type in 1998, ethylene propylene rubber [EPR,
both ethylene-propylene copolymer (EPM) and ethylene-propylene terpolymer (EPDM)]
experienced the largest consumption increases, growing 3.2 percent to reach 814 kt,
according to data released by the IISRP. SBR consumption remained stable at 0.8 percent, or
3.3 million metric tons. BR consumption was down 3.4 percent to 1.9 million metric tons,
mainly because of significant decreases in Asia and Oceania, China, and Latin America.
Acrylonitrile butadiene 0.2 percent, dropping to(NBR) consumption remained relatively flat
at 320 kt. According to data collected by the International Rubber Study Group (IRSG),
world synthetic rubber output fell by nearly 2 percent to 9.9 million metric tons in 1998 after
3 consecutive years of growth. During that period, the world experienced a relatively higher
increase in the consumption of synthetic rubber, resulting in declining stocks in the second
half of 1998.
Most Asian producers, still suffering from the 1997 financial crisis and overcapacity
in that region, experienced declines in production in 1998. China’s production declined 2
percent to 589 kt after 8.4 percent growth in 1997–1998. Japan’s production declined 4
percent in 1998 to 1.5 million metric tons, Korea’s dropped 2 percent to 530 kt, and India’s
plummeted 12 percent to 66 kt in that period. Only Taiwan weathered the Asian storm with
an increase in production, up 5 percent to 428 kt in 1998.
Exports from the U.S. of synthetic rubber are expected to remain relatively flat in
1999 due to the recovering state of Asian and Latin American economies, tempered with
unexpected pockets of demand in places like Korea and Venezuela. Slower growth for U.S.
exports over imports will persist through 2000, particularly if Asian markets fail to grow
faster than capacity. Asia’s capacity has continued to grow, reaching a level of 3.1 million
metric tons in 1998.
(Source: http://researchwikis.com/Rubber_Marketing_Research_-_Asia)
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2.2.2.2 Southeast Asian Plantations Develop a Low-Cost, Labor-Intensive
Alternative
In Asia, the British and Dutch drew upon their superior stocks of capital and vast
pools of cheap colonial labor to transform rubber collection into a low-cost, labor-intensive
industry. Investment per tapper in Brazil was reportedly 337 pounds sterling circa 1910; in
the low-cost Asian plantations, investment was estimated at just 210 pounds per worker
(Dean, 1987). Not only were Southeast Asian tappers cheaper, they were potentially eighty
percent more productive (Dean, 1987).
Ironically, the new plantation system proved equally susceptible to uncertainty and
competition. Unexpected sources of uncertainty arose in the technological development of
automobile tires. In spite of colonialism, the British and Dutch were unable to collude to
control production and prices plummeted after 1910. When the British did attempt to restrict
production in the 1920s, the United States attempted to set up plantations in Brazil and the
Dutch were happy to take market share. Yet it was too late for Brazil: the cost structure of
Southeast Asian plantations could not be matched. In a sense, then, the game was no longer
worth the candle: in order to compete in rubber production, Brazil would have to have had
significantly lower wages -- which would only have been possible with a vastly expanded
transport network and domestic agriculture sector in the hinterland of the Amazon
basin. Such an expensive solution made no economic sense in the 1910s and 20s when
coffee and nascent industrialization in São Paulo offered much more promising prospects.
2.2.3 Rubber Industry in Thailand
2.2.3.1 Growing Rubber Trees in Thailand
Rubber trees grow best on flat low land, these areas, if left uncultivated, would have
been mostly rainforest. Fifty years ago, 60% of Thailand was covered with forests, now it is
less than 20%. The dramatic change has meant that Thailand’s forests have been swapped for
cash, with rubber tree plantations now prevalent in Thailand.
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Putting a value on a rubber plantation is easy, but putting a value on rainforest is more
difficult. Never the less modern day culture seems to put a higher value on material items,
rather than life-giving rainforests.
Land that is used for rubber cultivation quickly suffers a rapid decline in the fertility
of the soil. This is because growing one crop removes the same nutrients again and again
from the earth. Until they are totally depleted and that crop can no longer be grown until, the
nutrients are replaced. After areas are cleared of forest ready for planting of rubber trees, but
before they can be planted, soil erosion can often wipe out the life-giving topsoil.
In some extreme cases lives have been lost, as happened at a site that had been cleared
for rubber trees in Thailand in 1988. In a village named Kireewong; landslides caused by a
tropical downpour killed over 300 people and devastated the town of Nakhorn Si Thammara,
Simply because there were no trees to hold the ground together to prevent the landslides.
Tropical rainforests in Thailand offer great value in the area of tourism, where
obviously rubber plantations offer no interest to visiting foreign tourists.
If you were to calculate the value of the rainforest to tourism in Thailand, it would
work out as many millions of dollars every year. Probably significantly more than is
produced from the sale of products produced from the rubber plantations.
Ecotourism is the fastest-growing tourism sector in Thailand, and destroying
rainforest to make way for rubber production produces little reward. Compared to the huge
amount of tourist dollars flowing in Thailand every year from people who wish to visit the
natural wonders the Thais have to offer their visitors.
2.2.3.2 Thailand: World Supplier of Natural Rubber
The southern part of Thailand has a monsoon climate, which is highly conducive to
rubber tree cultivation. This climate helps Thailand’s rubber farmers achieve high yields -
roughly 1.76 tons of rubber per hectare – and has allowed Thailand to lead the world in
natural rubber production since 1991. In 2006 alone, over 3 million tons of natural rubber
was sourced from Thailand. These already sizeable production levels are projected to
increase 2.2% per annum between 2007 and 2009.
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In fact, nearly 90% of Thailand’s natural rubber production is for export. Over
2,771,673 tons, or an estimated US$5.41 billion, of natural rubber was exported in 2006. The
top five recipients of Thailand’s rubber products, in terms of export values for 2006, were:
China, Japan, Malaysia, the United States, and South Korea.
Furthermore, the International Rubber Study Group (IRSG) has forecast a 4.4%
annual growth rate for global rubber consumption for the period of 2007 to 2009. This rise in
demand will predominantly originate in the Asia and Pacific region. This region, which
accounted for 54% of the total rubber consumption in 2006, is expected to experience an
annual growth of demand for rubber of 5.9% between 2007 and 2009.
Thailand is optimally located to supply the natural rubber demands of the Asia Pacific
region. The proximity of its production sites to its destination sites allows for the ‘just-in-
time’ delivery essential for complex rubber products.
Ten percent of all the rubber produced in Thailand is used for domestic consumption.
Of this portion, 65% is processed into value-added goods, such as tires and tubes for
motorcycles, airplanes, cars and bicycles (46-51%), gloves (13-15%), rubber bands (8-10%),
and elastic (8-9%). Rubber wood, a renewable resource that presents an attractive alternative
to hardwoods timber, is an increasingly important product in the domestic market as this
market raises its environmental awareness.
Major opportunities for investment exist in the production of value-added rubber
products, many of which are used by the growing domestic automotive industry. The
following products present strong investment opportunities:
Tires and tubes for automobile
Piping and tubing tires
Gaskets / Seals
Gloves
Elastic
Hoses
Condoms
Furniture from rubber wood
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Another growth market is the developing market and cultivation for organic rubber. There is
a growing demand for organic rubber and Thailand is already a leader in the development of
sustainable and environmentally sustainable methods for rubber processing.
Why Thailand?
Abundant resources: Thailand is the largest producer of natural rubber.
Location in a high demand region: The Asia and Pacific region has the highest rubber
consumption growth rate.
Research and development: Thailand has higher R&D spending than either Malaysia
or Indonesia.
Enhanced Infrastructure: Thailand has ample water supply and low incidence of
power outages to insure the availability of the resources essential to manufacturing
ventures. Solid transportation and communications infrastructure combine to promote
ease of export.
Free Trade Agreements: Thailand has already negotiated reduced tariffs on rubber
products with China, ASEAN countries, Australia, and New Zealand.
Availability of workforce: Thailand’s labor is cost-effective relative to that of
Malaysia and Indonesia, but quality is never sacrificed to quantity. Thailand is home
to a wealth of highly skilled personnel, and graduates 80,000 science and engineering
students annually.
2.2.3.3 Thailand: World’s Top Supplier of Natural Rubber
Rubber is an indispensable resource. It is required in the manufacture of many
industrial and consumer products, from hoses and vehicle tires to belts, condoms and gloves.
Since its introduction in Thailand during the early 1900s, the country has grown to become
the world’s largest producer and exporter of natural rubber. The first experimental planting
area was located in Trang Province at the southern part of Thailand. By 2009, more than 2.72
million hectares were being cultivated throughout the country.
In addition to being the leading exporter and processor of high-quality rubber, Thailand is
also a top R&D center for the material. The goal through 2012 is for the Thai rubber industry
to develop sophisticated technology and generate added value, enhancing its competitiveness.
P a g e | 22
(Source: Thai Rubber Association)
The southern part of Thailand has a monsoon climate, which is highly conducive to
rubber tree cultivation. This helps Thai rubber farmers achieve high yields – roughly 1.76
tons of rubber per hectare – and has allowed Thailand to lead the world in natural rubber
production since 1991. In2009 alone, nearly 3.1 million tons of natural rubber was produced
in the country. The already sizeable production yield is projected to increase at least 2% per
annum. Small landholders, 90% of which are located in southern Thailand, dominate the
rubber plantation landscape, holding 95% of the planting area. However, the rubber sector
itself is controlled by large processing plants that purchase the material via local dealers.
2.2.3.4 Lively Export Sector
Nearly 90% of Thailand’s natural rubber production is for export. More than 2.7
million tons or US$4.26 billion worth of natural rubber was exported in 2009. The top five
destinations for Thailand’s rubber products in terms of export value that year were China,
Malaysia, Japan, the European Union and the United States. According to projections by the
Office of Industrial Economics, the country’s rubber product exports could reach US$6.6
billion in 2012.
Figure 2-5 World’s Top 5 Produces of Natural Rubber in 2009
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(Source: Rubber Research Institute of Thailand)
2.2.3.5 Thailand: Strategic High-Demand Region
The International Rubber Study Group has forecast 5.1% and 5.8% growth for global
rubber consumption in 2010 and 2011, respectively. Growth is being fueled largely by rising
demand in the Asia-Pacific region.
Thailand is optimally located to supply the Asia-Pacific’s natural rubber requirement. The
proximity of the country’s production sites to regional markets allows for the just-in-time
delivery essential for complex rubber products.
2.3.3.6 Value-Added Rubber Products
Ten percent of all rubber produced in Thailand is used in domestic consumption. Of
this portion, 65% is processed into value-added goods such as tires and tubes for motorcycles,
airplanes, cars and bicycles (46-51%), gloves (13-15%), rubber bands (8-10%) and elastic (8-
9%). Rubber wood, a renewable resource that presents an attractive alternative to hardwood
timber, is an increasingly important product in the domestic market amid greater
environmental awareness.
Figure 2-6 Thailand’s Natural Rubber Export Market 2009
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2.3.3.7 Thailand’s Major Rubber Product Companies
Tire products: Goodyear, Thai-Bridgestone, Michelin-Siam, Dunlop
Other rubber products: Top Glove, Ansell
2.3.3.8 Thailand’s Growing Tire Industry
Thai Bridgestone Co., Ltd. in February 2010 hosted the opening ceremony of its
newly established Bridgestone Retread Center.
Goodyear (Thailand) Public Co., Ltd. has invested US$25 million in its
radicalization project to raise the plant’s daily production capacity for airplane tires
from 130 to 160 units and for automobile tires from 4,900 to 7,200 units.
Dunlop Tire (Thailand) Co., Ltd. opened its factory with a new production system,
boasting high investment efficiency and manufacture of high-quality radial tires at the
Amata City Industrial Estate in Rayong Province. Already, expansion of production
capacity is in the works.
2.3.3.9 Supporting Organizations
Thailand’s government, trade associations and R&D institutions are actively
promoting the growth and competitiveness of the rubber industry. Supporters include:
Rubber Research Institute of Thailand
National Science and Technology Development Agency
National Metal and Materials Research Center (MTEC)
National Center for Genetic Engineering and Biotechnology (BIOTEC)
Research and Development Institute of Industrial Production Technology, Kasetsart
University
Prince of Songkhla University
Department of Industrial Promotion
Thai-German Institute
Rubber Estate Organization
Polymer Society (Thailand)
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2.3.3.10 Attractive Investment Incentives
The Board of Investment has classified the manufacture of natural rubber and rubber
wood products as a priority activity. As such, projects receive an eight-year corporate income
tax holiday and are exempt from import duties on machinery.
2.2.4 Rubber Industry in China
2.2.4.1 Chinese Rubber Industry and Market
China consumed a quarter of the rubber in the world. The consumption keeps
increasing due to the booming automotive industry.
China consumed 5.50 million metric tons of rubber in 2008,
accounting for 24.8% of the world’s total consumption (22.18
million metric tons).
The 2008 consumption increased 6% from the 2007 level mainly
due to the booming automotive industry. Driven by the automotive industry, China's output
of tires, the main rubber finished products, increased 10% in 2008.
Rubber consumption in the Chinese market in 2008 by industries:
1. Tire (sans cycle tire): 3.85 million metric tons.
2. Cycle tire: 420 thousand metric tons.
3. Pipe and Belt: 450 thousand metric tons.
4. Footwear: 400 thousand metric tons.
5. Emulsion: 200 thousand metric tons.
6. Others: 180 thousand metric tons.
Total: 5.50 million metric tons.
China Rubber Industry - Chen Nanyang
P a g e | 26
2.2.4.2 China Nature Rubber Industry and Market
In 2008 China consumed 2.53 million metric tons of nature rubber, accounting for
26.8% of the world’s total consumption (9.45 million metric tons).
Nature rubber consumption in the Chinese market in 2008 by industries:
1. Tire (sans cycle tire): 2.16 million metric tons.
2. Cycle tire: 120 thousand metric tons.
3. Pipe and Belt: 90 thousand metric tons.
4. Footwear: 30 thousand metric tons.
5. Emulsion: 60 thousand metric tons.
6. Others: 70 thousand metric tons.
Total: 2.53 million metric tons.
China’s output of nature rubber reached 600 thousand metric tons in 2008. The import
was around 1.9 million metric tons. But 0.4 metric tons of smuggling rubber from Vietnam
impacted the market a lot due to the low price, which went down to 8,000 yuan ($1,170) per
metric ton in late 2008.
Sources: China Rubber Industry Association, National Bureau of Statistics of China, and
China National Petroleum Corporation.
(Source: http://www.suite101.com/content/china-rubber-a163348 ,Read more at Suite101:
China Rubber: Chinese Rubber Industry and Market http://www.suite101.com/content/china-
rubber-a163348#ixzz17L8svrz8)
P a g e | 27
2.3.1 Industry and rubber products.
Thailand is the world first of natural rubber producer and can generate revenue from
exports of rubber products in most of the world as well. We can see that the rubber industry is
important to the nation with both of employment and exports. Since Thailand is well
equipped in terms of the material that is an advantage to competitors. Thailand will need to
accelerate the value creation of a more natural rubber.
Block Rubber
Description: The production of block rubbers involves
relatively sophisticated machineries and
heavy power consumption. The basic
layout of block rubber production from
latex.
Material Composition: Latex
RSS (Rubber Smoked Sheet)
Description: Our rubber smoked sheet (RSS) is
available in standard strengths, colors,
sizes, and compounds. It is used as a raw
material for industrial production. Smoked
sheets are classified into 4 grades varying
from RSS2, RSS3, RSS4 and RSS5.
Material Raw rubber sheet
(Source: http://www.ksgroup.co.th/office/import-export/rubber-rss.html )
(Source: http://www.unctad.org/infocomm/anglais/rubber/technology.htm )
Summary of Market value 2.3
P a g e | 28
2.3.1.1 Production
In 2010, Thailand will have more rubber tapping area are about 11.9 million hectares
from 11.5 million hectares of 2009 or 4.22 percent. Rubber yields approximately 3.3 tons, up
6.7 percent from the year 2009. Because in many areas that can be opened gradually cut
rubber tapping more open. And rubber trees in the high yield more. In 2010, Thailand will be
use rubber about 0.4 million tons, up from 0.37 million tons of year 2009 or 8.11 percent
because of government's policy is support more.
2.3.1.2 Export
Thailand is expected to export about 2.85 million tons up from 2.7 million tons of
2009 or 5.5 percent because China has been importing rubber from Thailand increase
especially in the form of the compound, which in the last three years, Thailand can export up
to 64 per cent per year to China, Japan, Korea, Malaysia, the United States and the EU.
Meanwhile, the trend of the growth of the tire industry in China, Japan and the United States
and Russia, resulting in natural rubber in the world market will tend to increase continuously.
And are confident that Thailand also holds a leading manufacturer and exporter of rubber in
the world market amid competition is increases. The important competitions are Indonesia,
Malaysia and Vietnam.
(Source:
http://www.farmkaset.org/contents/defaultToLocalDetails.aspx?id=1034&content=00262 )
2.3.2 Vision of our organization
To be, and be recognized as, the leader complex rubber industry in the North of
Thailand and group of neighbor country, as well as provide best of service for customer.
2.3.3 Mission of our organization
Thai-North Rubber tries to be the central of rubber industries in Indochina to
accommodate the higher amount of rubber including support neighboring countries. We will
develop standards of raw rubber sheets and rubber smoked sheets of now a day to be high
quality form level 3 to level 2 and level 1 that will have to acceptable of markets both
P a g e | 29
domestic and international markets especially with China. For rubber trade, by buying from
local farmers will be use the local price, for exports will be use the overseas market as a
futures market and just at time which a criterion. And we will management marketing and
international contacts to find loyal customers by planning to retain satisfaction by using CRM
(customer relationship management) include of grower and farmer.
2.3.4 Strategy
2.3.4.1 Corporate Level
According to China’s demand for rubber, rubber, higher than that produced quite a
lot. Since the current investors in foreign investment into manufacturing base tire vehicles in
China in 2543 increased, the Chinese demand for rubber, up to 970,000 tons / year, which is
No. 2 in the world after the United States. While China can produce about 500,000 tons of
rubber per year only makes rubber Chinese imports from abroad reached 470,000 tons per
year.
The cost of rubber production in China is quite high. Because the climate is not suitable
The Chinese can only rubber plantation area in the southern provinces only. To Coupled with
China’s rubber farmers lack the expertise in rubber cultivation. The cost of rubber production
in China is quite high. To Compared with another countries including Thailand. In additional
any countries like Korea, Japan, Malaysia, US. and EU. to export the rubber.
So we focus on the market to provide the rubber and we would to be the center north
of Thailand to be export the rubber for neighbor countries.
2.3.4.2 Business Level
According to the status of our company we would to be the central North of Thailand
to export the rubber to the neighbor countries like China, Japan, Korea, Malaysia, the United
States and EU. So, We chosen the market development to organized the company to export
the rubber.
So we should to concentrated for our competitors like Indonesia and We are the ones
who collect the latex yield from the tag to leave the factory to produce our company for
processing rubber sheets and rubber pieces, because we will use Time to send out a very long
P a g e | 30
time. We can assume that the processing and export of rubber. In Chiang Rai province so no
one company to export business of this type and rubber in the form as required by the market
in China is extremely.
2.3.4.3 Functional Level
We will observe and analyze more sales from countries that we export and less
profitable. We will cut the country that we get the less profit or return loss, and we will bring
the budget from that country to increased investment in the success or profitability of the
business country. So, we had chosen retrenchment strategy to organize our company.
P a g e | 31
Chapter 3
Market Feasibility
Study
P a g e | 32
3.1.1 General Environment Analysis
3.1.1.1 General information of the People's Republic of China (PRC)
The People's Republic of China (PRC), 中华人民共和国, commonly known as
China, is the most populous state in the world with over 1.3 billion people. Located in East
Asia, China is a single-party state governed by the Communist Party of China (CPC). The
PRC exercises jurisdiction over 22 provinces, five autonomous regions, four directly
administered municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two highly
autonomous special administrative regions (SARs) – Hong Kong and Macau. Its capital city
is Beijing.
3.1.1.2 Geography
The PRC is the world's third- or fourth-largest country by total area (depending on the
definition of what is included in that total) and the second largest by land area. Its landscape
is diverse, with forest steppes and deserts (the Gobi and Taklamakan) in the dry north near
Mongolia and Russia's Siberia, and subtropical forests in the wet south close to Vietnam,
Laos, and Burma. The terrain in the west is rugged and at high altitude, with the Himalayas
and the Tian Shan mountain ranges forming China's natural borders with India and Central
Asia. In contrast, mainland China's eastern seaboard is low-lying and has a 14,500-kilometre
(9,000 mi) long coastline bounded on the southeast by the South China Sea and on the east by
the East China Sea beyond which lie Taiwan, Korea, and Japan.
Market Analysis
Industry Profile
3.1
P a g e | 33
Area
- Total 9,640,821 km2 [c] or
9,671,018 km²[c](3rd/4th) 3,704,427 sq mi
- Water (%) 2.8[d]
- China borders 14 nations
- Counted clockwise from south: Vietnam, Laos, Burma, India, Bhutan, Nepal, Pakistan,
Afghanistan, Tajikistan, Kyrgyzstan, Kazakhstan, Russia, Mongolia and North Korea.
- The border between PRC and ROC is located in territorial waters.
- China has a land border of 22,117 km(13,743 mi) , The largest in the world.
3.1.1.3 Demographics
As of July 2010, there are 1,338,612,968 people in the PRC. About 21% (male
145,461,833; female 128,445,739) are 14 years old or younger, 71% (male 482,439,115;
female 455,960,489) are between 15 and 64 years old, and 8% (male 48,562,635; female
53,103,902) are over 65 years old. The population growth rate for 2006 was 0.6%.
The PRC officially
recognizes 56 distinct ethnic
groups, the largest of which are
the Han Chinese, who constitute
about 91.9% of the total
population. Large ethnic
minorities include the Zhuang
(16 million), Manchu
(10 million), Hui (9 million),
Miao (8 million), Uyghur
(7 million), Yi (7 million), Tujia
(5.75 million), Mongols (5 million), Tibetans (5 million), Buyei (3 million), and Koreans
(2 million).
P a g e | 34
In the past decade, China's cities expanded at an average rate of 10% annually. The
country's urbanization rate increased from 17.4% to 46.8% between 1978 and 2009, a scale
unprecedented in human history. Between 150 and 200 million migrant workers work part-
time in the major cities and return home to the countryside periodically with their earnings.
Today, the People's Republic of China has dozens of major cities with one million or more
long-term residents, including the three global cities of Beijing, Hong Kong, and Shanghai.
.
GDP 2010 estimate
- Total $10.084 trillion (2nd)
- Per capita $7,518(99th)
GDP (nominal) 2010 estimate
- Total $5.745 trillion (2nd[5])
- Per capita $4,283 (98th)
Figure 3-1 Major cities in China play key roles in national and regional identity, culture and economics
P a g e | 35
3.1.1.4 Education
In 1986, China set the long-term goal of providing compulsory nine-year basic
education to every child. As of 2007, there were 396,567 primary schools, 94,116 secondary
schools, and 2,236 higher education institutions in the PRC. In February 2006, the
government advanced its basic education goal by pledging to provide completely free nine-
year education, including textbooks and fees. Free compulsory education in China consists of
elementary school and middle school, which lasts for 9 years (age 6-15); almost all children
in urban areas continue with 3 years of high school.
As of 2007, 93.3% of the populations over age 15 are literate. China's youth (age 15
to 24) literacy rate was 98.9% (99.2% for males and 98.5% for females) in 2000. In March
2007, China announced the decision of making education a national "strategic priority", the
central budget of the national scholarships will be tripled in two years and 223.5 billion Yuan
(28.65 billion US dollars) of extra funding will be allocated from the central government in
the next 5 years to improve the compulsory education in rural areas.
Many parents are highly committed to their children's education, often investing large
portions of the family's income on education. Private lessons and recreational activities, such
as in foreign languages or music, are popular among the middle-class families who can afford
them.
3.1.1.5 Transportation
Transportation in the mainland of the People's
Republic of China has improved significantly since the
late 1990s as part of a government effort to link the entire
nation through a series of expressways known as the
National Trunk Highway System (NTHS). The total
length of expressway is 65,000 km (40,000 mi) at the end
of 2009, second only to the United States. China has also
the world’s longest high-speed rail network with over
7,050 km (4,380 mi) of service routes.
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Private car ownership is increasing at an annual rate more than 15%. The sale of
automobiles had been increasing rapidly after the financial crisis in 2009, and China
surpassed the United States became the largest automobile market in the world with total
sales of more than 13.6 million Domestic air travel has increased significantly, but remains
too expensive for most. Long distance transportation is dominated by railways and charter
bus systems. Railways are the vital carrier in China; they are monopolized by the state,
divided into various railway bureaus in different regions. At the rates of demand it
experiences, the system has historically been subject to overcrowding during travel seasons
such as Chunyun during the Chinese New Year.
The major cities have rapidly expanding networks of underground or light rail
systems. Numerous cities are also constructing subways. Hong Kong has one of the most
developed transport systems in the world. Shanghai has a Maglev rail line connecting its
urban area to its main international airport, Pudong International Airport.
(Source: http://en.wikipedia.org/wiki/People's_Republic_of_China#Education)
3.1.2 PES Analysis
3.1.2.1 Political
The PRC is regarded by several political scientists as one of the last five Communist
states (along with Vietnam, North Korea, Laos, and Cuba), but simple characterizations of
PRC's political structure since the 1980s are no longer possible. The PRC government has
been variously described as communist and socialist, but also as authoritarian, with heavy
restrictions remaining in many areas, most notably on the Internet, the press, freedom of
assembly, reproductive rights, and freedom of religion.
Compared to its closed-door policies until the mid-1970s, the liberalization of the
PRC is such that the administrative climate is less restrictive than before, however the PRC is
still far from the liberal democracy practiced in most of Europe or North America, and the
National People's Congress has been described as a "rubber stamp" body. The PRC's
incumbent president is Hu Jintao and its premier is Wen Jiabao.
P a g e | 37
The country is ruled by the Communist Party of China (CPC), whose power is
enshrined in China's constitution. The political system is very decentralized with limited
democratic processes internal to the party and at local village levels, although these
experiments have been marred by corruption. There are other political parties in the PRC,
referred to in China as democratic parties, which participate in the People's Political
Consultative Conference and the National People's Congress.
There have been some moves toward political liberalization, in that open contested
elections are now held at the village and town levels, and that legislatures have shown some
assertiveness from time to time. However, the Party retains effective control over government
appointments: in the absence of meaningful opposition, the CPC wins by default most of the
time. Political concerns in the PRC include lessening the growing gap between rich and poor
and fighting corruption within the government leadership.
The level of support to the government action and the management of the nation is
among the highest in the world, with 86% of people who express satisfaction with the way
things are going in their country and with their nation's economy according to a 2008 Pew
Research Center survey
3.1.2.2 Economic
From its founding in 1949 to late 1978, the People's Republic of China was a Soviet-
style centrally planned economy. Private businesses and capitalism did not exist. To propel
the country towards a modern, industrialized communist society, Mao Zedong instituted the
Great Leap Forward. Following Mao's death and the end of the Cultural Revolution, Deng
Xiaoping and the new Chinese leadership began to reform the economy and move to a
market-oriented mixed economy under one-party rule. In 1978, China and Japan had
normalized diplomatic relations and China had decided to borrow money from Japan in soft
loans. Since 1978, Japan has been No.1 foreign donor for China. China's economy is mainly
characterized as a market economy based on private property ownership. Collectivization of
the agriculture was dismantled and farmlands were privatized to increase productivity.
A wide variety of small-scale enterprises were encouraged while the government
relaxed price controls and promoted foreign investment. Foreign trade was focused upon as a
P a g e | 38
major vehicle of growth, which led to the creation of Special Economic Zones (SEZs) first in
Shenzhen (near Hong Kong) and then in other Chinese cities. Inefficient state-owned
enterprises (SOEs) were restructured by introducing western-style management system and
the unprofitable ones were closed, resulting in massive job losses.
Since economic liberalization began in 1978, the PRC's investment- and export-led
economy has grown 90 times bigger and is the fastest growing major economy in the world. It
now has the world's second largest nominal GDP at 34.06 trillion Yuan (US$4.99 trillion),
although its per capita income of US$3,700 is still low and puts the PRC behind roughly a
hundred countries he primary, secondary, and tertiary industries contributed 10.6%, 46.8%,
and 42.6% respectively to the total economy in 2009. If PPP is taken into account, the PRC's
economy is second only to the US at US$9.05 trillion corresponding to US$6,800 per capita.
The inaugural Global Wealth Report by Credit Suisse Research Institute collects data
across more than 200 countries in mid-2010 stated China is expected to overtake Japan as the
second wealthiest country in the world by 2015 ($35 trillion) on the back of rapid economic
growth and strong domestic consumption. Ten years ago, China was the seventh largest
country in global wealth and China currently holds $ 16.5trillion, 35 percent ahead of the
wealthiest European country, France.
The PRC is the fourth most visited country in the world with 50.9 million inbound
international visitors in 2009. It is a member of the WTO and is the world's second largest
trading power behind the US with a total international trade of US$2.21 trillion –
US$1.20 trillion in export and US$1.01 trillion in imports. Its foreign exchange reserves have
reached US$2.4 trillion, making it by far the world largest. The PRC owns an estimated
$1.6 trillion of US securities. The PRC, holding US$801.5 billion in Treasury bonds, is the
largest foreign holder of US public debt. It is the world's third largest recipient of inward FDI
by attracting US$92.4 billion in 2008 alone, while the country itself increasingly invests
abroad with a total outward FDI of US$52.2 billion in 2008 alone becoming the world's sixth
largest outward investor.
The PRC's success has been primarily due to manufacturing as a low-cost producer.
This is attributed to a combination of cheap labor, good infrastructure, medium level of
technology and skill, relatively high productivity, favorable government policy, and some
say, an undervalued exchange rate. The latter has been sometimes blamed for the PRC's
P a g e | 39
bulging trade surplus (US$262.7 billion in 2007) and has become a major source of dispute
between the PRC and its major trading partners – the US, EU, and Japan – despite the yuan
having been de-pegged and risen in value by 20% against the US$ since 2005.
The state still dominates in strategic "pillar" industries (such as energy and heavy
industries), but private enterprise (30 million private businesses) now accounts for anywhere
between 33% (People's Daily 2005) to 70% (Business Week, 2005) of GDP in 2005, while
the OECD estimate is over 50% of China's national output, up from 1% in 1978. Its stock
market in Shanghai (SSE) is raising record amounts of IPOs and its benchmark Shanghai
Composite index has doubled since 2005. SSE's market capitalization reached US$3 trillion
in 2007 and is the world's fifth largest exchange.
China now ranks 29th in the Global Competitiveness Index. 46 Chinese companies
made the list in the 2010 Fortune Global 500 (Beijing alone with 30). Measured using market
capitalization, four of the world's top ten most valuable companies are Chinese. Some of
these include first-ranked Petro China (world's most valuable oil company), third-ranked
Industrial and Commercial Bank of China (world's most valuable bank), fifth-ranked China
Mobile (world's most valuable telecommunications company) and seventh-ranked China
Construction Bank.
Although a middle income country by the world's standard, the PRC's rapid growth
managed to pull hundreds of millions of its people out of poverty since 1978. Today, about
10% of the Chinese population (down from 64% in 1978) live below the poverty line of
US$1 per day (PPP) while life expectancy has dramatically increased to 73 years. More than
93% of the population is literate, compared to 20% in 1950. Urban unemployment declined to
4 percent in China by the end of 2007 (true overall unemployment might be higher at around
10%).
Its middle class population (defined as those with annual income of at least
US$17,000) has now reached more than 100 million, while the number of super-rich
individuals worth more than 10 million Yuan (US$1.5 million) is estimated to be 825,000
according to Huron Report. China's retail market is worth RMB 8.9 trillion (US$1.302
trillion) in 2007 and growing at 16.8% annually. It is also now the world's second biggest
consumer of luxury goods behind Japan with 27.5% of the global share.
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The PRC's growth has been uneven when comparing different geographic regions and
rural and urban areas. The urban-rural income gap is getting wider in the PRC with a Gini
coefficient of 46.9%. Development has also been mainly concentrated in the eastern coastal
regions while the remainders of the country are left behind. To counter this, the government
has promoted development in the western, northeastern, and central regions of China.
The economy is also highly energy-intensive and inefficient – it uses 20%–100%
more energy than OECD countries for many industrial processes. It has now become the
world's largest energy consumer but relies on coal to supply about 70% of its energy needs.
Coupled with a lax environmental regulation, this has led to a massive water and air pollution
(China has 20 of the world's 30 most polluted cities).Consequently, the government has
promised to use more renewable energy with a target of 10% of total energy use by 2010 and
30% by 2050.
3.1.2.3 Public health and Environment
The Ministry of Health, together with its counterparts in the provincial health bureau,
oversees the health needs of the Chinese population. An emphasis on public health and
preventive medicine characterized health policy since the early 1950s. At that time, the
Communist Party started the Patriotic Health Campaign, which was aimed at improving
sanitation and hygiene, as well as attacking several diseases. This has shown major results as
diseases like cholera, typhoid, and scarlet fever were nearly eradicated.
With economic reform after 1978, the health of the Chinese public improved rapidly
because of better nutrition despite the disappearance, along with the People's Communes, of
much of the free public health services provided in the countryside. Health care in China
became largely private fee-for-service. The country's life expectancy at birth jumped from
about 35 years in 1949 to 73.18 years in 2008, and infant mortality went down from 300 per
thousand in the 1950s to about 23 per thousand in 2006. Malnutrition as of 2002 stood at 12%
of the population according to United Nations FAO sources.
Despite significant improvements in health and the introduction of western style
medical facilities, China has several emerging public health problems, which include
P a g e | 41
respiratory problems as a result of widespread air pollution and hundreds of millions of
cigarette smokers, a possible future HIV/AIDS epidemic, and an increase in obesity among
urban youths. China's large population and close living quarters has led to some serious
disease outbreaks in recent years, such as the 2003 outbreak of SARS (a pneumonia-like
disease) which has since been largely contained.
Estimates of excess deaths in China from environmental pollution (apart from
smoking) are placed at 760,000 people per annum from air and water pollution (including
indoor air pollution). In 2007, China has overtaken the United States as the world's biggest
producer of carbon dioxide. Some 90% of China's cities suffer from some degree of water
pollution, and nearly 500 million people lack access to safe drinking water. Reports by the
World Bank and the New York Times have claimed industrial pollution, particularly of the
air, to be significant health hazards in China.
China has some relevant environmental regulations: the 1979 Environmental
Protection Law, which was largely modeled on US legislation. But the environment continues
to deteriorate. While the regulations are fairly stringent, they are frequently disregarded by
local communities while seeking economic development. Twelve years after the law, only
one Chinese city was making an effort to clean up its water discharges.
Part of the price China is paying for increased prosperity is damage to the
environment. Leading Chinese environmental campaigner Ma Jun has warned that water
pollution is one of the most serious threats facing China. According to the Ministry of Water
Resources, roughly 300 million Chinese are drinking unsafe water. This makes the crisis of
water shortages more pressing, with 400 out of 600 cities short of water.
With $34.6 billion invested in clean technology in 2009, China is the world's leading
investor in renewable energy technologies. China produces more wind turbines and solar
panels each year than any other country.
3.1.2.4 Science and Technology
After the Sino-Soviet split, China started to develop its own nuclear weapons and
delivery systems, successfully detonating its first surface nuclear test in 1964 at Lop Nur. A
P a g e | 42
natural outgrowth of this was a satellite launching program, which culminated in 1970 with
the launching of Dong Fang Hong I, the first Chinese satellite. This made the PRC the fifth
nation to independently launch a satellite.
In 1992, the Shenzhou manned spaceflight program was authorized. After four
unmanned tests, Shenzhou 5 was launched on 15 October 2003, using a Long March 2F
launch vehicle and carrying Chinese astronaut Yang Liwei, making the PRC the third country
to put a human being into space through its own endeavors. China completed its second
manned mission with a crew of two, Shenzhou 6 in October 2005. In 2008, China
successfully completed the Shenzhou 7 mission, making it the third country to have the
capability to conduct a spacewalk. In 2007, the PRC successfully sent the Chang'e spacecraft,
named after the ancient Chinese moon goddess, to orbit and explore the moon as part of their
Chinese Lunar Exploration Program. China has plans to build a space station in the near
future and to achieve a lunar landing in the next decade. There are also plans for a manned
mission to planet Mars.
China has the world's second largest research and development budget, and is
expected to invest over $136 billion in 2006 after growing more than 20% in 2005. The
Chinese government continues to place heavy emphasis on research and development by
creating greater public awareness of innovation, and reforming financial and tax systems to
promote growth in cutting-edge industries.
In 2006, President Hu Jintao called for China to make the transition from a
manufacturing-based economy to an innovation-based one and the National People's
Congress has approved large increases in research funding. Stem cell research and gene
therapy, which some in the Western world see as controversial, face minimal regulation in
China. China has an estimated 926,000 researchers, second only to the 1.3 million in the
United States.
China is also actively developing its software, semiconductor and energy industries,
including renewable energies such as hydro, wind and solar power. In an effort to reduce
pollution from coal-burning power plants, China has been pioneering the deployment of
pebble bed nuclear reactors, which run cooler and safer, and have potential applications for
the hydrogen economy.
P a g e | 43
In 2010, China developed Tianhe-IA, the world's fastest supercomputer, currently
stored in the National Supercomputing Center of Tianjin. The system is expected to process
seismic data for oil exploration, conduct bio-medical computing and help design aerospace
vehicles. Besides China's National SuperComputer Center's Tianhe-1A above, China also has
Nebulae. It is two publicy (for military or something secret usually is not announced)
available supercomputers among world's top 10.
3.1.2.5 Culture
For centuries, opportunity for economic and social advancement in China could be
provided by high performance on Imperial examinations. The literary emphasis of the exams
affected the general perception of cultural refinement in China, such as the belief that
calligraphy and literati painting were higher forms of art than dancing or drama. China's
traditional values were derived from various versions of Confucianism and conservatism.
A number of more authoritarian and rational strains of thought have also been
influential, such as Legalism. There was often conflict between the philosophies, such as the
individualistic Song Dynasty neo-Confucians, who believed Legalism departed from the
original spirit of Confucianism. Examinations and a culture of merit remain greatly valued in
China today. In recent years, a number of New Confucians have advocated that democratic
ideals and human rights are quite compatible with traditional Confucian "Asian values."
The first leaders of the People's Republic of China were born in the old society but
were influenced by the May Fourth Movement and reformist ideals. They sought to change
some traditional aspects of Chinese culture, such as rural land tenure, sexism, and a
Confucian education, while preserving others, such as the family structure and obedience to
the state.
Many observers believe that the period following 1949 is a continuation of traditional
Chinese dynastic history, while others say that the CPC's rule has damaged the foundations of
Chinese culture, especially through political movements such as the Cultural Revolution,
where many aspects of traditional culture were labeled 'regressive and harmful' or 'vestiges of
feudalism' by the regime and thus, were destroyed. They further argue that many important
aspects of traditional Chinese morals and culture, such as Confucianism, Chinese art,
P a g e | 44
literature, and performing arts like Beijing opera, were altered to conform to government
policies and propaganda at the time.
Today, the Chinese government has accepted a great deal of traditional Chinese
culture as an integral part of Chinese society, lauding it as an important achievement of the
Chinese civilization and emphasizing it as vital to a Chinese national identity. Since the
Cultural Revolution ended, various forms of traditional Chinese art, literature, music, film,
fashion and architecture have seen a vigorous revival, and folk and variety art in particular
have gained a new found respectability, and sparked interest nationally and even worldwide.
Chinese culture and the West were linked by the Silk Road. Artifacts from the history
of the silk route, as well as from the natural history of the Gobi desert, are displayed in the
Silk Route Museum.
(Source: http://en.wikipedia.org/wiki/People's_Republic_of_China#Education)
3.1.3 Competition Analysis
3.1.3.1 Competitor Analysis
Now Chaing Rai province is the area of rubber plantation and processing factory rubber
export demand growth from China, India, and Thailand did not stop the production and
Exports of rubber behind demand. We need more foreign and rubber non-stop, as
manufacturer and exporter behind Thailand. Current output is used in only 4% and sent to
China, India, and 39% most 17% by the Indian market. In the future, is expected to grow at
least equal to China for this reason, it is currently involved with private business, Thailand's
largest rubber.
The Company has many competitors. Therefore, we inflicted a direct competitor. Most of
them are targeting the same product. And similar in some for our major competitors such as
Chalong Latex Industry Co.,Ltd. (Source: http://www.chalonglatex.com/e_index.php)
Southland Holding Co., Ltd (Source: http://southlandholding.com/)
Sri Trang Agro-Industry Public Company Limited
(Source: http://www.sritranggroup.com/en/page/10_corporate.php)
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The big competitors such as
Thai Hua Rubber Public Co.,Ltd
Planting para rubber was the first job that Mr. Luckchai's grandfather held when he
emigrated from China to Nakhon Si Thammarat 80 years ago. The family together with some
neighbors moved to Rayong in 1957 and brought some rubber seedlings. The company
started producing smoked rubber in 1978 with Bridgestone as its first customer.
Thai Hua Rubber Public Co., Ltd head office is situated in Bangkok. The company
has 11 production plants in different region of Thailand and 1 branch office in Shanghai,
China. In total the company employs about 1900-2000 workforce. The company has business
joint ventures with foreign investors to produce Medical Rubber Glove, rubber wood
Kitchenware, auto Tyre, raw and roasted Coffee Bean.
Original formed in 1985 under the name of THAI HUA RUBBER COMPANY
LIMITED by the family KITTIPOL together with some close relatives. In 1996, the company
changed its name to THAI HUA RUBBER PUBLIC COMPANY LIMITED, since 1991, the
company was rank as one of the largest rubber producer and exporter in Thailand.
(Source: http://www.thaihua.com/)
Thai rubber latex corporation (Thailand) Public company limited.
Thai Rubber Latex Corporation is a leading manufacturer and exporter of latex
concentrate, disposable rubber glove, extruded rubber thread, talcum coated rubber thread,
and various rubber products. Our core competitiveness is derived from consistency of supply,
high-quality products, and spontaneous customer services. That is contributable to our
success. For more than three decades, Thai Rubber Latex Corporation has stably become one
of the most recognized concentrated latex producers in Thailand and gained numerous
reputations within rubber industry worldwide.
(Source: http://www.thaitexgroup.com/)
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3.1.3.2 Customer Analysis
Customer Analysis is determined by target customer or we have to offer sales and
services to customers where that the analysis of target groups (Occupants) allows to know the
behavior in the purchase and use of the actual target group. A clear target groups and
analyzed the characteristics of the possibilities. The target customers that will lead to success
in direct sales in the analysis, and the prospects salesman match has to be divided clear
market that can be measured quantitatively and easy access because consumers all potential
customers may not always and if there is no market segmentation is difficult to analyze the
needs of actual customers until they are not able to offer in the form of satisfaction to their
customers.
China is the country of the world's largest rubber volume of use is 25 per cent of the
amount of rubber in the world in the last 5 years, the demand for rubber in China is rapidly
increasing average 10 percent per year until the top importing countries rubber largest one of
the world in 2007 China imported rubber worth U.S. $ 3,260 million. Increased 8 percent
compared with the year 2006 with a market share of Thailand is also number one export
market, Thailand's largest rubber exports to China, most with 54 % of the export value of
rubber, all of Thailand, followed by rubber smoked sheets (26%) and latex (19%) for the
information. Interest of the rubber market in China is as follows. In Yunnan province is one
of the 10 major industrial facility of the county by the year 2004 the company Yunnan Nong
Ken Group Co., Ltd in association with Yuntian Hua Group Co., Ltd established Yunnan
Natural Rubber Production Co., Ltd was at Kun Ming City. This is the largest rubber
company in China. Of capital than 2.7 billion Yuan registered capital of 800 million Yuan,
the area planted in rubber production to 1.5 million square meters per year, 130,000 tones per
cent. Therefore, we see that China is to be a good customer in the export business, our rubber
processing.
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3.1.3.3 Competitive Analysis
The Five - forces model for the competitive Rubber in Chiangrai.
The Rivalry among Existing competitor
Now in Chiangrai has private investors from the South of Thailand the major buy a lot
of rubber cultivation and the Chiang Rung, Khun Tan,Chiang Khong Wiang Chai
entertainment section has a factory finish. The Phaya Meng Rai has big capitalists to buy
about 1 thousand farm to plant rubber. Resulted in land price increase from 3000-3500 baht
per rai per rai is almost ten thousand Baht and if thinking about buying a rubber plantation
grown then. I need to add more to the old rubber thousand baht per rai per year. We have
been promoting and expanding rubber cultivation area to the north. Especially in Chiang Rai,
Considered a source of rubber cultivation is important. The rubber farmers of more than
15,000 families are planting more than 350,000 acres and rubber tapping rubber to open no
less than 5,000 acres and is about to open another cut hundreds of thousands of farm This will
generate revenue to rubber farmers in the future. Make money flow into the economy of
Chiang Rai, about 10 million Baht.
Threats of new entry
Rubber is currently increasing need in the market. Rubber demand exceeds capacity.
Therefore, the company turned to new interests and rubber production increased because of
the importance of rubber and to demand more. The use of rubber processed and used in many
benefits and its growing cluster what are our company’s major competitors ago.
Bargaining power of buyer
Aggregation of rubber sales not only benefit from the purchase was also the
bargaining power of customers further reduced by this method uses the price of goods up
within the group is treated the same price. This can be done very easily because the supply of
goods, production and cost the same. Customers will not be able to negotiate a trade because
the price out of each stores the same. If not satisfied with the price I have to buy it because
the other stores selling the same price. The profitability of other it's the technique that can
each store from which some without prejudice to the agreed price.
Bargaining power of supplier
Crisis, the decline in rubber prices during the year 2534 to year 2535 continued to
rubber farmers have suffered and demanding the government come. The help given the
P a g e | 48
structure of the Thai rubber market appeared to look like a buyer's market or a few buyers
market the rubber farmers. The market is vulnerable lack of bargaining power and do not get
their fair due from the sale of tire dealers be purchased including assessment quality rubber
than the reality because most poor farmers have to sell products to the market as well as the
immediate livelihood Rubber multi-level dealers. Result in charges pay market prices and
margins in each level resulted in farmers selling at a low price for rubber tire market in
Thailand is having problems as well, because the sender used the method of direct trade
between producers and users. The rubber has important role in determining the price of
rubber. Yang lack of markets to free competition, these are all things affecting the basic
rubber. The majority of small rubber planters established central rubber market. It is one way
the government aims to develop a system of rubber market, both domestic and foreign
countries to be effective.
Threats of substitute product and service
Threat of substitute products and services for business expansion plans are to the
relatively high. Rubber products have quite a vehicle and industrial rubber products. Since
replacement of the rubber product is a synthetic rubber by-product is distilled from crude oil.
The price of rubber has a close relationship with the oil price in world market simply means
"to oil the tires up," There are also issues about the relationship between the price of rubber in
the market AFET and the price of rubber in the international market is likely to become
possible in the same direction.
P a g e | 49
3.2.1 Market segment
Our company planned to export products; we segment market by using the country
that wants to import the rubber to be the base for segmenting market. We want to kwon what
country suitable for exports our products.
So we have many countries in the international rubber market to export such as USA, China,
Japan, India, Korea, German etc
(Source: Geojit Comtrade Research Desk.(2010). Natural Rubber: Will the Rally
Contnue?.Geojit Comtrade Ltd.)
3.2.2 Market Target
Thai-North is having only main one target focus. Our target is a China-market
specialization following in the table.
USA
China
Japan
India
Korea
German
Malaysia
Thailand Turkey
Other
STP analysis 3.2
Figure 3-2 Rubber consumption in the world
P a g e | 50
2754 2743 3043 3353
0500
1000150020002500300035004000
#"・・ "#・・ #"・・ "#・・
:1000Tons
US CN JP IN KR DE MY TH TR
Rubber Smoked Sheet (RSS)
Block Rubber
China is a country that import rubber largest of the world, while today China cannot
produce rubber to enough their demand. Thailand export block rubber to China most, with 54
percent of the total export value and followed with Smoked Rubber Sheets (RSS) to
responding growth of automobile industry in China. The rapid economic development in recent
years in China, demand for rubber is increased continuously and become a product shortage that
make demand of smoked rubber sheets(RSS) and Block Rubber are continuous. Moreover,
we have policy to production with higher quality and try to develop standards and quality of
basic processing rubber to meet the needs of Chinese industry.
(Source: Export-Import Bank of Thailand)
(Source: Association of Natural Rubber Producing Countries, Monthly Bulletin of Natural
Rubber Trends & Statistics, Vol.2 No.7 July 2010)
EXHIBIT 3-1 Market Specialization
Figure 3-2 Increasing in demand of rubber in China annually
P a g e | 51
3.2.3Positioning
Our production is for export quality, allow to product line we can rank with many
grade to serve the variance of demand.
Smoked Rubber Sheets (RSS)
The split into 5 categories: Rubber Smoked Sheet
1, 2, 3, 4 and 5 classes by grading the quality of rubber is
used as the basis for each disc as a raw material to
production of goods such as water wheels, tires,
automotive parts, shoes, etc.. The products are divided
into grades by using the ground base eye (Visually Grade) is divided into rubber smoked
sheet. Thai-North Rubber position is the export quality.
Standard Domestic’s quality Export’s quality
Rubber Smoked Sheets 1( Extra
light color ) -
Rubber Smoked Sheets 1 -
Rubber Smoked Sheets 2 -
Rubber Smoked Sheets 3 -
Rubber Smoked Sheets 4 -
Rubber Smoked Sheets 5 -
Block Rubber
Divided into 4 categories are STR XL, STR5L, STR 5 and
STR 5CV**. It is a product used as raw materials in
manufacturing and other products like the Rubber Smoked Sheet
(RSS) on the tire industry.
EXHIBIT 3-2 Thai-North Rubber Position Export Quality
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Block Rubber is begins with the selection of raw materials and strict control before
entering the manufacturing process until it is completed and tested with lab standard quality.
The test results with high accuracy include of the transport process that ensures of all
products delivered to customer’s needs, conditions and standards required. Our positioning is
Standard Domestic’s quality Export’s quality
Standard Thai Rubber XL -
Standard Thai Rubber 5L -
Standard Thai Rubber 5 -
Standard Thai Rubber 5 CV** -
Standard Thai Rubber 10 -
Standard Thai Rubber 10 CV ** -
Standard Thai Rubber 20 -
Standard Thai Rubber 20CV** -
(Source: http://www.sritranggroup.com/th/page/20_products2.php )
EXHIBIT 3-3 Positioning of Our Company
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3.3.1 Product
Since Thailand is well equipped in terms of the raw material advantage with
Competitors. There are opportunities and possibilities in developing countries as a
manufacturing center, and send the basic process for quality products to meet the needs of
users. However, processing of raw rubber sheet at the present the farmers have production
low quality, when the plants purchased raw rubber sheets of these farmers to be rubber smoke
with low quality. However, the raw rubber sheet, rubber farmers who produce poor quality. Is
there a way to make prices higher by introducing the steam or smoke. The raw rubber sheet
becomes rubber at higher prices immediately. So that a primary processing plant of rubber
latex rubber sheet Raw and smoked sheets will create added value for the rubber to meet
processing products in China.
3.3.1.1 Variety Branding
There are 2 type of product of rubber processing such a Rubber Smoked sheet (RSS)
and Block Rubber to export in China. China has a very high market demand in terms of
rubber. We see that if the export rubber in latex, it is difficult to transport. We think that
exporting rubber processing. That it would be easier and more convenient in transportation.
3.3.1.2 Quality Packaging
Rubber production is a standard selection of quality raw materials, through the
manufacturing process to reduce the size of a modern, clean as determined by it. Rubber
process into the cooked temperature through the process of briquette weight to be prescribed
through rubber packaging will be processed by the laboratory test standard. The test results
with high accuracy. The processing plant was established to help develop basic rubber tires
standard. Sheet farmers as raw rubber sheets and rubber at higher quality level 3 to level 2
and level 1.To produce sheet rubber and rubber smoked for higher quality. Would achieve
higher sales prices and increased profits.
Marketing Mix Strategy 3.3
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3.3.2 Price
The pricing of the companies will be priced based on the purchase price of domestic.
On Export the company will focus on the world market. According fact the amount of rubber
agriculturist organizations or vendors to sell products and there are a lot of volume. And will
comply with the demand of rubber in the industry and are buying that. We will push the price
of rubber to raise to the level of agriculturist tires a profit worth the investment and maintain
the rubber price to be stable, as appropriate to the situation and possible price to buy and
prices. It is a major exporter. Of course, now that the company will be based on a range of
rubber products to market but that price will be adjusted up or down. We are separated by
price segment in which we will split the purchase price and export volume of purchase and
the demand of consumers by period time. The Company is divided into save cost price which price to purchase directly from
agriculturist, is sold with partners and using the global export prices.
- Save cost is the price to purchase directly from agriculturist. The company offers a low cost.
We use each day pricing. This has variance and based on the quality of rubber parts for each
class of agriculturist.
- Price is sold with partners. Using the global export prices overall rising trend. Due to market
products based on low. Right now is extremely competitive. Companies are using strategies
is pricing conjunction with the world market price.
3.3.3 Place
3.3.3.1 Factory
Our company choose Chiang Rai province to set up factory because it is the suitable
for processing rubber. We have many factors to choose this province. The major factor that
made we choose that are raw material. Chaing Rai have trend to rubber plant across the 18
districts, 347,857 Rai. Expected in the coming years Chaing Rai will be the top of rubber
plant in the country subordinate of Songkhla, Surat Thani, Nakhkon Si Thammarat, Trang
etc. The concern the market should not worry because the information was reviewed
currently Thailand’s rubber emphasis on export to China 39%. Based economic growth also
P a g e | 55
growth continued until we produce left behind to rest 4% of the country. At the same time
Chaing Rai also has the ability to export to China via South Road R3A. Currently Office of
the Rubber Replanting Aid Fund is pushing to have more offices at the port of Chiang Khong
to facilitate the export of rubber to China and South of China. Other factor is about employee
Chiang Rai have the border near with Myanmar and Laos. So we can employee from those
countries. We expect that it will lower wage and save cost. Chiang Rai is the suitable that we
will set up factory.
(Source: http://www.manager.co.th/Local/ViewNews.aspx?NewsID=9530000131252)
3.3.3.1.1 General Information of Chiang Rai province.
Chiang Rai is the northernmost province of Thailand. Neighboring provinces are
Phayao, Lampang and Chiang Mai. In the north it borders Shan State of Myanmar and Bokeo
of Laos.
Geography
The average elevation of the province is 580 m. The north of the province belongs to
the so-called Golden Triangle, at which the borders of Thailand, Laos and Myanmar
converge - an area which was very unsafe because of the drug smuggling across the borders.
The Mekong river forms the boundary with Laos, the Mae Sai and Ruak River to Myanmar.
Through the town of Chiang Rai itself flows the Kok River.
While the eastern part of the province is relatively flat river plains, the western part
consists of the mountainous terrain of the Hills of Northern Thailand. While not the highest
elevation of the province, the 1389 m high Doi Tung (Flag hill) is the most important hill.
The Wat Phra That Doi Tung temple on top of the hill according to the chronicles dates back
to the year 911. Nearby is the Doi Tung royal villa, former residence of the Late Princess
mother (mother of the present king) Somdej Phra Srinagarindra. Thanks to her activities the
hills were reforested, and the hill tribes changed from growing poppy to other crops.
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Demographics
The majority of the population is generally ethnic Thai, but 12.5% of the population
belongs to the hill tribes, a minority in the North of Thailand. A minority are of Chinese
descent, mainly descendants of the Kuomintang soldiers who settled in the region, notably
Santikhiri.
Medical Health Care
The popular Chiang Rai hospitals are:
- Chiang Rai Regional Hospital
- Kasemrad Sriburin General Hospital
- Overbrooke Hospital
Local Culture
The north of Thailand's culture is Lanna in origin and the people are very proud of
their northern roots. The region is home to distinctly different food, music, arts, way of life
and even language. Chiang Rai is also a melting pot of hill tribes and their own unique
cultures.
(Source: http://en.wikipedia.org/wiki/Chiang_Rai_Province)
3.3.3.1.2 Inventories and Warehousing
We will locate Inventories and Warehousing near the Factory because it will better to
save cost of transport. The Inventories up on the demand of products we will management
inventory to be value with space that we have. And we will do the same with warehousing. It
will be close to the factory and not far to the port that we will ship the product. We have plan
to expanse to be located near the port for save cost of logistic but it up on the production and
the profit that we will get. If we have high of return this project will follow.
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3.3.3.2 Location Logistic
In the present there are three ways to shipments from Thailand to The People’s
Republic of China.
Ocean
Now transport by ship is major transportation routes. There are two routes that Thai
can shipment to China. The First routes, Transport by the Mekong River by start from port of
Chiang Saen district or Chiang Khong district in Chiang Rai province. Shipping to port of
City Xishuangbanna in Yunnan Province or port of Nanning city, Free area, Guangxi. Then
distribute the goods to the following cities. The Second routes, Most of the freight route is
start from Laem Chabang through the South China Sea to Hong Kong. Four days for
shipment. Then change to freight ship small for transport to Nan Hai Pier. Go to central
wholesale market of fruit imported Lee Sui, Guangzhou City. And distribute the goods to the
following cities of Guangdong and other provinces such as Shanghai, Beijing and Xiamen
Min.
Air
All most shipping in early season of production that have a few products and high
price to Airports in various major cities of China such as Airport City Kun Ming, Shanghai,
Chengdu, Beijing etc. In 2001Thailand has exported vegetables and fruits to amount of 100
tons or value of 3.7 billion Baht.
Motor
There are five routes but in present not widely used because of poor road conditions
and construction was not completed.
The First route(R 12, R8 and R13, R9) is start from Nong
Khai Province, Kakhon Phanom Province and Muk Da Han
to Vientiane, Laos to Vietnam and enters to China, Nanning
City, Free area, Guangxi.
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The Second route (R3B,R3W) is start
from Mae Sai district of Chiang Rai province to
Myanmar side to Checkpoint of Tha Khi Lek
through Young City and enters to Xiamen Song
City of China to Xishuangbanna, Yunnan
province with a distance of 240 kilometers.
The Third route (R3B, R3W) is start
from Mae Sai district of Chiang Rai province to
Myanmar side to Dan Tha Khi Lek through
Chiang Tung City to Xishuangbanna in China
with a distance of 253 kilometers.
The Forth route (R3A) is start from Chiang
Khong district of Chiang Rai province to Laos
through Huai Sai in Luang Nam Tha, Boten
and Bohan and enters to Xishuangbanna in
China with a distance of 254 kilometers.
The Last route (R3A) is start from Honor
district of Nan province to Laos through
Checkpoint of Huaikorn, Namnegrn, Boten,
Bohan and enters to Xishuangbanna in China
with a distance of 300 kilometers.
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Rail
Kunming-Singapore Railway
Kunming-Singapore rail link
by 2015?
The Associated Press reports
that the Association of
Southeast Asian Nations
(ASEAN) is expecting a
US$15 billion railway
connecting Singapore with
Kunming to be completed by
2015, which is several years
later than had been previously
hoped.
The 5,000 kilometer (3,000
mile) rail line's development
has been hampered by a lack of
funds, technical issues and varying levels of enthusiasm among countries involved.
There is already an existing rail link from Singapore to Bangkok, passing through Malaysia;
it is the two branches extending north from Bangkok that have proven more difficult. The
western branch will travel through Myanmar and the line's eastern branch will cut through
Cambodia and Vietnam, with an additional section of track connecting it to Laos.
ASEAN secretary-general Ong Keng Yong told the AP that the Asian Development Bank has
recently given Cambodia US$40 million in soft loans, with an additional US$5.4 million in
grants also being secured for the rail line, which is expected to dramatically increase the flow
of people and cargo throughout the region.
(Source:http://www.gokunming.com/en/blog/item/27/kunmingsingapore_rail_link_by_2015 )
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(Source: http://www.mof.or.th/fruit-olympic/freetrade-thaichina.htmand
http://www.econ.tu.ac.th/ertc/php/)
3.3.4 Promotion
3.3.4.1 The exhibitions show
The exhibitions show will also introduce Thai-
North Rubber and is still regarded as temporary sales
channels with a low cost to deliver and demonstrate
products to consumers directly.
The show had to be coordinated on several
issues. The important, we will work with
government agencies of Thailand and China that
help us to promote and support like The Oversea
Trade Fair, Department of Export Promotion (DEP)
and Foreign Market Development Office in line of
China. The trade show will be arrange meeting
EXHIBIT 3-4 Trans-Asian Railway network
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between entrepreneurs and those interested, in the critical locations in economy throughout
the year such as Bangkok, Shanghai and Zhejiang, etc. We can track any information from
such cooperation.
3.3.4.2 Website
Marketing strategy is effective and cost-effective results to our most other one is.
Marketing online and one of the key elements of online marketing strategies for our business
is web site. The web site also increase the revenue for us, is will helps take the good image of
Thai-North-Rubber to modern, cope, and up-market of rubber. Promote by website will
enhance the opportunity of our company from buyers all over the world. And the price of
goods down by reduce middleman which will increase competitiveness in the global market.
(Source: http://www.sritranggroup.com/th/page/index.php )
Thai-North Rubber ©
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Quantity Production
Thailand has produced rubber high as number one in the world. It has space for
planting more than 2 million hectares and harvest more than 70 percent per year.
Thailand has rubber cultivation in regions of the country. Most of the country will be
planted in the southern hemisphere and the second was the Northeast.
1: Rai
(Source: http://www.rubberthai.com/statistic/stat_index.htm )
In the North area of Thailand has project plant 1 million of rubber. In Chiang Rai has
just 10% tapping rubber. In the future North also increase produce of rubber follow age of
rubber trees. Growth rate will increase too.
Zone Quantity
South 11,339,698
Central and East 1,978,660
Northeast 2,799,209
North 600,578
Sale Forecast/Profit estimate 3.4
Table 3-1 Quantity Production
Figure 3-3 Quantity Production in Thailand
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Month Quantity 2003 2004 2005 2006 2007 2008 2009
JAN 317,725 253,536 272,991 254,474 264,835 285,172 225,413
FAB 326,993 269,172 259,370 264,470 247,871 231,867 258,492
MAR 319,282 264,763 263,417 263,341 249,423 245,239 235,272
APR 212,220 209,323 207,522 203,481 199,795 210,967 176,168
MAY 218,882 219,634 216,099 214,925 197,907 210,299 169,162
JUN 231,656 220,291 201,729 212,509 220,283 214,381 204,317
JUL 251,020 250,270 240,418 236,044 244,750 257,850 234,608
AUG 220,323 251,418 271,397 268,569 278,119 256,397 225,921
SEP 265,523 175,208 264,357 264,393 250,647 277,473 214,341
OCT 245,494 338,214 242,525 276,871 268,473 267,253 236,068
NOV 218,593 278,223 269,061 299,763 264,179 188,070 257,754
DEC 280,055 291,566 243,305 297,930 279,846 187,113 304,508 Per: Ton
Table 3-2 The export value of Thailand rubber in 2003 – 2009
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Per: Ton
Year 2003 2004 2005 2006 2007 2008 2009
RSS 1,003,309 920,972 938,984 861,326 796,549 694,510 322,470
STR 993,504 1,109,327 1,069,345 1,103,848 1,132,135 950,574 524,588
Latex 488,559 488,675 555,905 510,489 509,375 595,550 245,152
Mix 82,443 36,700 129,564 105,151 165,164 417,499 197,524
other 60,236 76,724 77,875 77,948 72,060 68,060 26,503
Total 2,628,051 2,632,398 2,771,673 2,658,762 2,675,283 2,726,193 1,316,237
Plan of rubber(Rai) Trapping of rubber(Rai) Produce(Ton)
2008 2009 2008 2009 2008 2009
North 600,578 693,812 14,841 24,218 3,710 6,166 Northeast 2,799,209 2,984,097 569,668 690,410 154,917 198,436 Central 1,977,460 2,063,418 1,273,204 1,295,560 364,167 349,297 South 11,339,698 11,512,990 9,514,176 9,590,259 2,644,116 2,536,381
Table 3-3 Category of rubber export
Table 3-4 Compare plant, trap and produce in 2008-2009
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(Source: http://www.manager.co.th/Local/ViewNews.aspx?NewsID=9530000131252 and
http://www.thainr.com/th/index.php?detail=stat-thai ) Tendency rubber price per year Traded domestic rubber price will base on auction price and quantity. Export rubber price base on foreign market both cash and future market.
Rubber market Price (Baht/KG.) Quantity
(KG.) Filed Latex RSS 1-
3 RSS 4 RSS 5 RSS bubble
RSS Cutting
Songkhia 138.62 137.62 134.5 133.5 127.5 70,500 132
Suratthani - - - - - - -
Nakorn-Srithammarat 138.62 137.62 135.49 134.5 130.16 120,000 -
Figure 3-4 Compare plant, trap and produce in 2008-2009
Table 3-5 Rubber smoked sheet
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Month RSS 3
Jan-11 139.70
Feb-11 142.00
Mar-11 141.10
(Source: http://www.rubberthai.com/price/eng/price_eng.htm )
North of Thailand has 4% area all of plant rubber but has around 10% can trapping
rubber. Our company assumes 0.8% of north rubber export to increase total sale every year.
In rainy season is decrease sale volume because it has affected to keep latex. Price of RSS 3
is 142 and STR 138 Baht per Kg. We have account receive 30% from sale forecast.
2011 2012 2013 2014 2015
RSS 3 125 137 151 166 183
STR 203 223 246 270 297 Per: Ton
Country Type Shipment US CENT / KG
Thailand RSS 3 JAN 485 STR 20 JAN 485
Indonesia SIR 20 JAN 479.6
Malaysia SMR 20 JAN 480
Table 3-6 Cash market on offer price
Table 3-7 Future Market on AFET
Table 3-7 Volume
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Year 2011(Quantity)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Ton) 5.44 5.44 6.67 6.67 4.57 4.57 4.57 4.57 6.85 6.85 7.02 7.02 70.23
STR (Ton) 8.85 8.85 10.85 10.85 7.43 7.43 7.43 7.43 11.14 11.14 11.43 11.43 114.26
Total 14.30 14.30 17.53 17.53 11.99 11.99 11.99 11.99 17.99 17.99 18.45 18.45 184.49
Year 2011(Price)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 772,925 772,925 947,456 947,456 648,260 648,260 648,260 648,260 972,389 972,389 997,322 997,322 9,973,223
STR (Baht) 1,221,960 1,221,960 1,497,887 1,497,887 1,024,870 1,024,870 1,024,870 1,024,870 1,537,305 1,537,305 1,576,723 1,576,723 15,767,227
Total 1,994,885 1,994,885 2,445,343 2,445,343 1,673,129 1,673,129 1,673,129 1,673,129 2,509,694 2,509,694 2,574,045 2,574,045 25,740,450
Year 2011(Account Receivable)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 231,877 231,877 284,237 284,237 194,478 194,478 194,478 194,478 291,717 291,717 299,197 299,197 2,991,967
STR (Baht) 366,588 366,588 449,366 449,366 307,461 307,461 307,461 307,461 461,191 461,191 473,017 473,017 4,730,168
Total 598,465 598,465 733,603 733,603 501,939 501,939 501,939 501,939 752,908 752,908 772,213 772,213 7,722,135
Table 3-8 Sale Forecast/Profit estimate, 2011
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Year 2012(Quantity)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Ton) 7.73 7.73 7.73 7.73 3.86 3.86 3.86 3.86 7.73 7.73 7.73 7.73 77.26
STR (Ton) 12.57 12.57 12.57 12.57 6.28 6.28 6.28 6.28 12.57 12.57 12.57 12.57 125.68
Total 20.29 20.29 20.29 20.29 10.15 10.15 10.15 10.15 20.29 20.29 20.29 20.29 202.94
Year 2012(Price)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 1,097,055 1,097,055 1,097,055 1,097,055 548,527 548,527 548,527 548,527 1,097,055 1,097,055 1,097,055 1,097,055 10,970,545
STR (Baht) 1,734,395 1,734,395 1,734,395 1,734,395 867,197 867,197 867,197 867,197 1,734,395 1,734,395 1,734,395 1,734,395 17,343,949
Total 2,831,449 2,831,449 2,831,449 2,831,449 1,415,725 1,415,725 1,415,725 1,415,725 2,831,449 2,831,449 2,831,449 2,831,449 28,314,495
Year 2012(Account Receivable)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 329,116 329,116 329,116 329,116 164,558 164,558 164,558 164,558 329,116 329,116 329,116 329,116 3,291,164
STR (Baht) 520,318 520,318 520,318 520,318 260,159 260,159 260,159 260,159 520,318 520,318 520,318 520,318 5,203,185
Total 849,435 849,435 849,435 849,435 424,717 424,717 424,717 424,717 849,435 849,435 849,435 849,435 8,494,348
Table 3-9 Sale Forecast/Profit estimate, 2012
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Year 2013(Quantity)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Ton) 8.50 8.50 8.50 8.50 4.25 4.25 4.25 4.25 8.50 8.50 8.50 8.50 84.98
STR (Ton) 13.82 13.82 13.82 13.82 6.91 6.91 6.91 6.91 13.82 13.82 13.82 13.82 138.25
Total 22.32 22.32 22.32 22.32 11.16 11.16 11.16 11.16 22.32 22.32 22.32 22.32 223.23
Year 2013(Price)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 1,206,760 1,206,760 1,206,760 1,206,760 603,380 603,380 603,380 603,380 1,206,760 1,206,760 1,206,760 1,206,760 12,067,600
STR (Baht) 1,907,834 1,907,834 1,907,834 1,907,834 953,917 953,917 953,917 953,917 1,907,834 1,907,834 1,907,834 1,907,834 19,078,344
Total 3,114,594 3,114,594 3,114,594 3,114,594 1,557,297 1,557,297 1,557,297 1,557,297 3,114,594 3,114,594 3,114,594 3,114,594 31,145,944
Year 2013(Account Receivable)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 362,028 362,028 362,028 362,028 181,014 181,014 181,014 181,014 362,028 362,028 362,028 362,028 3,620,280
STR (Baht) 572,350 572,350 572,350 572,350 286,175 286,175 286,175 286,175 572,350 572,350 572,350 572,350 5,723,503
Total 934,378 934,378 934,378 934,378 467,189 467,189 467,189 467,189 934,378 934,378 934,378 934,378 9,343,783
Table 3-10 Sale Forecast/Profit estimate, 2013
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Year 2014(Quantity)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Ton) 9.35 9.35 9.35 9.35 4.67 4.67 4.67 4.67 9.35 9.35 9.35 9.35 93.48
STR (Ton) 15.21 15.21 15.21 15.21 7.60 7.60 7.60 7.60 15.21 15.21 15.21 15.21 152.07
Total 24.56 24.56 24.56 24.56 12.28 12.28 12.28 12.28 24.56 24.56 24.56 24.56 245.56
Year 2014(Price)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 1,327,436 1,327,436 1,327,436 1,327,436 663,718 663,718 663,718 663,718 1,327,436 1,327,436 1,327,436 1,327,436 13,274,360
STR (Baht) 2,098,618 2,098,618 2,098,618 2,098,618 1,049,309 1,049,309 1,049,309 1,049,309 2,098,618 2,098,618 2,098,618 2,098,618 20,986,179
Total 3,426,054 3,426,054 3,426,054 3,426,054 1,713,027 1,713,027 1,713,027 1,713,027 3,426,054 3,426,054 3,426,054 3,426,054 34,260,539
Year 2014(Account Receivable)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 398,231 398,231 398,231 398,231 199,115 199,115 199,115 199,115 398,231 398,231 398,231 398,231 3,982,308
STR (Baht) 629,585 629,585 629,585 629,585 314,793 314,793 314,793 314,793 629,585 629,585 629,585 629,585 6,295,854
Total 1,027,816 1,027,816 1,027,816 1,027,816 513,908 513,908 513,908 513,908 1,027,816 1,027,816 1,027,816 1,027,816 10,278,162
Table 3-11 Sale Forecast/Profit estimate, 2014
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Year 2015(Quantity) Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Ton) 10.28 10.28 10.28 10.28 5.14 5.14 5.14 5.14 10.28 10.28 10.28 10.28 102.83
STR (Ton) 16.73 16.73 16.73 16.73 8.36 8.36 8.36 8.36 16.73 16.73 16.73 16.73 167.28
Total 27.01 27.01 27.01 27.01 13.51 13.51 13.51 13.51 27.01 27.01 27.01 27.01 270.11
Year 2015(Price)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 1,460,180 1,460,180 1,460,180 1,460,180 730,090 730,090 730,090 730,090 1,460,180 1,460,180 1,460,180 1,460,180 14,601,796
STR (Baht) 2,308,480 2,308,480 2,308,480 2,308,480 1,154,240 1,154,240 1,154,240 1,154,240 2,308,480 2,308,480 2,308,480 2,308,480 23,084,797
Total 3,768,659 3,768,659 3,768,659 3,768,659 1,884,330 1,884,330 1,884,330 1,884,330 3,768,659 3,768,659 3,768,659 3,768,659 37,686,593
Year 2015(Account Receivable)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 438,054 438,054 438,054 438,054 219,027 219,027 219,027 219,027 438,054 438,054 438,054 438,054 4,380,539
STR (Baht) 692,544 692,544 692,544 692,544 346,272 346,272 346,272 346,272 692,544 692,544 692,544 692,544 6,925,439
Total 1,130,598 1,130,598 1,130,598 1,130,598 565,299 565,299 565,299 565,299 1,130,598 1,130,598 1,130,598 1,130,598 11,305,978
Table 3-12 Sale Forecast/Profit estimate, 2015
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Year 2016(Account Receivable)
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
RSS (Baht) 1,460,180 1,460,180 1,460,180 0 0 0 0 0 0 0 0 0 4,380,539
STR (Baht) 2,308,480 2,308,480 2,308,480 0 0 0 0 0 0 0 0 0 6,925,439
Total 3,768,659 3,768,659 3,768,659 0 0 0 0 0 0 0 0 0 11,305,978
Table 3-13 Sale Forecast/Profit estimate, 2016
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We anticipate the activity expenses mostly for covering the cost of additional staff to help facilitate the additional requirements for marketing activities.
For year 2011
Marketing Expense Budget :
Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Advertising Web marketing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 7,000
Production Web development 500 500 Web ads/e-newsletters 200 200 400 PR/Events/Promotion Trade show/Events 3,000 3,000 3,000 9000
Total 0 0 0 3000 0 1000 1000 4000 1200 1000 1200 4500 16,900
Marketing Expend Budget 3.5
Table 3-14 Marketing Expense Budget, 2011
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For year 2012
Marketing Expense Budget :
Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Advertising Web marketing 500 500 500 1500
Production Web development 500 500 500 1500 Web ads/e-newsletters 200 200 200 200 200 200 1200 PR/Events/Promotion Trade show/Events 3,000 3,000 3,000 9000
Total 200 0 200 4000 200 0 200 4000 200 0 200 4000 13,200
Table 3-15 Marketing Expense Budget, 2012
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For year 2013
Marketing Expense Budget :
Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Advertising Web marketing 500 500 500
1,500 Production Web development 500 500 500 Web ads/e-newsletters 200 200 200 200 200 200 2,700 PR/Events/Promotion Trade show/Events 3,000 3,000 3,000
9,000 Total 200 0 200 3500 200 0 200 3500 200 0 200 3500 13,200
Table 3-16 Marketing Expense Budget, 2013
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For year 2014
Marketing Expense Budget :
Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Advertising Web marketing 500 500 500
1,500 Production Web development 500 500 500 Web ads/e-newsletters 200 200 200 200 200 200 2,700 PR/Events/Promotion Trade show/Events 3,000 3,000 3,000
9,000 Total 200 0 200 3500 200 0 200 3500 200 0 200 3500 13,200
Table 3-17 Marketing Expense Budget, 2014
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For year 2015
Marketing Expense Budget :
Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals Advertising Web marketing 500 500 500
1,500 Production Web development 500 500 500 Web ads/e-newsletters 200 200 200 200 200 200 2,700 PR/Events/Promotion Trade show/Events 3,000 3,000 3,000
9,000 Total 200 0 200 3500 200 0 200 3500 200 0 200 3500 13,200
Table 3-18 Marketing Expense Budget, 2015
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Chapter 4
Technical Operation
Feasibility Study
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Rubber industry, rubber processing industry is initially brought tapping latex from
rubber trees that are preserved in reasonable condition and ease of its use as a raw material in
the manufacture of rubber products. These rubber used in the manufacture of finished
products such as vehicle tires include tire bicycle tire motorcycle tire rubber gloves, condoms
and rubber band rubber tubing, etc..So, There are 2 mainly type of product to export in our
company.
4.1.1 Rubber Smoked Sheets (RSS)
The rubber sheet made by applying more latex split second to capture the dirt and
then with Ford Mick acid or acetic c. They were made with massage and rolling machine
rolling tire and rubber, 2-3 mm thick, and then to dry in the shade will be raw rubber sheets
(Unsmoked sheet, USS), which can be processed to a 2-way.
A rubber sheet dry. The drying air temperature 45-65 ° C takes about 3-5days waiting
for distribution packaging.
Rubber Smoked Sheet. By accessing hospital smoked Temperature of 50-60 degrees
Celsius takes 4-10 days and then classified visually Packaging.
Screening layer of rubber and screening rubber floor that day. The screening must be
highly skilled. It will be your eyes and help to predict layer of rubber which will be standard,
because the quality of rubber smoked sheets will be compared to the bar in the rubber. Class
that make rubber smoked a 5-layer rubber layer is considered low.
Rubber Smoked Sheet 1
Rubber Smoked Sheet 2
Rubber Smoked Sheet 3.
Rubber Smoked Sheet 4.
Rubber Smoked Sheet 5.
Product Characteristic 4.1
Technical Operation Feasibility Study
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Standard rubber smoked sheets of Thailand Remove the rubber layer 3 on the criteria
for judging. The rubber smoked this class is a quality equal Rubber TTR 20 quality rubber
smoke better is considered a rubber on floor 1 or 2, but if the quality worse than I consider it
to be rubber.
1. Bubbles and dirt. The language of the selected layer of rubber called a point and points.
2. The color and consistency of the color red does not mold.
3. No impurities.
4. The use of water and sulfuric acid is part
Considerations by separation of the rubber on its export standards following the
Association of Traders rubber, between countries are as follows. Rubber Smoked Sheet
rubber layer 3 is dried, smoked cooked consistently good cohesive flexible points and no
points other contaminants blamed as much as undesirable is a total of not more than 10
percent of the pages (like quality TTR 20).
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There are 3 types of Rubber Smoked Sheets (RSS) which are:
4.1.1.1 Rubber Smoked Sheets 1 (RSS1)
1. Do not have mold or mold a little dry only the surface of the rubber sheet wrapping.
2. The properties of rubber.
- Dry, hard.
- There is no point inflation - no gravel
- No contamination - without any blame.
- Clean - no rust.
3. Blamed acceptable.
- A pin head size bubbles scattered around the plate.
- The spot of a small bark.
Price: 142 baht/kg
4.1.1.2 Rubber Smoked Sheets 2 (RSS2)
1. Have a little rust mold or dry wrapping a sheet of rubber, but not more than 5% of the
sample detected.
2. The properties of rubber.
- Dry - hard.
- There is no point inflation - no gravel
- No contamination - without any blame.
- Clean
3. Blamed acceptable
- A small bubble.
- The spot of a small bark.
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Price: 142 baht/kg
4.1.1.3 Rubber Smoked Sheets 3 (RSS3)
1. Have a little rust. Mold or dry wrapping a sheet of rubber, but not more than 10%
of the sample detected.
2. The properties of rubber.
- Dry - hard.
- There is no point inflation - no gravel
- No contaminants - blamed acceptable.
- Have little spots - a spot of little bark.
- A small bubble.
Price: 142 baht/kg
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4.1.2 Block Rubber
Materials was use in the production of block rubber and latex is required to build up
before and the rubber handle, such as the waste of raw rubber sheet rubber bottom cup The
production process is different.
- Use latex done by applying latex poured in the tank, including the Tire and Rubber
coagulation and cut into cubes. The food took over crepe. Then small sub-rubber granules
Rubber, then dried and pressed into bar size 33.3 kg
- Use a rubber handle and then. For raw rubber sheets can be cut and pressed into ingots and
then bake it. The waste tires must be included in the Tire and cut tank cleaning Honor and
total iron bucket again into the machine through a crepe. Small rubber into be small pieces. Is
dried and then pressed into rectangular bar size 33.3 kg.
Rubber Trade of Thailand, including three STR 5L STR XL and STR CV60 is
divided into three parts outside the central part in the three rubber samples revealed that the
variance of STR 5L with the properties of processing most Examples of such properties of
the process index oxidation, index of solid rubber, viscosity etc. of the rubber layer was
different. Amount of gel rubber outer layer of rubber STR 5L and STR XL stored for one
year, were lower than in other parts of rubber, and expected due to the oxidation of the rubber
outer layer of rubber pieces. Because the outer layer of rubber is easy to abuse by oxygen and
P a g e | 84
ozone. In contrast, STR CV60 rubber gel content is quite constant in all parts of rubber from
spinning tires and rubber separation of water through the removal of protein coagulation
index of the rubber during storage increased significantly. While made of rubber and rubber
to eliminate fat, protein and fat removed and the coagulation index during storage is almost
constant, Rubber from latex, Tire spins separation. Rubber was removed from the protein
structure of the resulting gels boosted after a stronger reaction. Temperature change of the
molecular motion (glass transition temperature) of the gel is higher than the soluble or the
soul (sol fraction) of the structure and the structure branches of natural rubber during
storage. Assumed that due to chemical bonding. Between functional groups active among the
fatty chain length of phospholipid at the end of four lipid molecules of the rubber. Under
conditions is low humidity. Phil K New reaction sponsor of NRL action was done by
changing variables as follows. The temperature of the reaction, the concentration of sodium
hydroxide and reaction time to get optimum conditions for preparing high-purity
rubber.Nitrogen content of the rubber is reduced as much as 0.02% after the reaction sponsor
Phil K New Nation that the concentration of base was 7%, the reaction temperature of 70 ° C,
1-7 hours, the reaction of nitrogen rubber decreased significantly during the start of the
reaction and gradually Decreased slowly. After reaction for three to seven hours for
every The concentration of base. The results do try to express that possibly due to the slow
sample degradation. Of protein on the surface of rubber particles or May be due to the
difficulty in removing the protein degradation and a very low volume. From the rubber by
centrifugation:
4.1.2.1 STR 5L
Price: 138 baht/kg
P a g e | 85
4.1.2.2 STR XL
Price: 138 baht/kg
4.1.2.3 STR CV60
Price: 138 baht/kg
(Source http://www.rubber.co.th , http://www.yangpara.com )
P a g e | 86
Cost of goods sold Year 2011
Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total cost of latex (Ton ) 25 25 31 31 21 21 21 21 32 32 33 33 328 Price (Baht/Ton) 75 75 75 75 98.2 105 101 108 75 75 75 75 Total 1,875,000 1,875,000 2,325,000 2,325,000 2,062,200 2,205,000 2,121,000 2,268,000 2,400,000 2,400,000 2,475,000 2,475,000 26,806,200
Year 2012 Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Cost of latex(Ton) 36 36 36 36 18 18 18 18 36 36 36 36 361 Price (Baht/Ton) 75 75 75 75 98.2 105 101 108 75 75 75 75 Total 2,700,000 2,700,000 2,700,000 2,700,000 1,767,600 1,890,000 1,818,000 1,944,000 2,700,000 2,700,000 2,700,000 2,700,000 29,019,600
Year 2013 Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Cost of latex(Ton) 40 40 40 40 20 20 20 20 40 40 40 40 397 Price (Baht/Ton) 75 75 75 75 98.2 105 101 108 75 75 75 75 Total 3,000,000 3,000,000 3,000,000 3,000,000 1,964,000 2,100,000 2,020,000 2,160,000 3,000,000 3,000,000 3,000,000 3,000,000 32,244,000
Year 2014 Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Cost of latex(Ton) 44 44 44 44 22 22 22 22 44 44 44 44 440 Price (Baht/Ton) 75 75 75 75 98.2 105 101 108 75 75 75 75 Total 3,300,000 3,300,000 3,300,000 3,300,000 2,160,400 2,310,000 2,222,000 2,376,000 3,300,000 3,300,000 3,300,000 3,300,000 35,468,400
Year 2015 Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Cost of latex(Ton) 48 48 48 48 24 24 24 24 48 48 48 48 480 Price (Baht/Ton) 75 75 75 75 98.2 105 101 108 75 75 75 75 Total 3,600,000 3,600,000 3,600,000 3,600,000 2,356,800 2,520,000 2,424,000 2,592,000 3,600,000 3,600,000 3,600,000 3,600,000 38,692,800
* This month (May-August) have the high price because this time is the rainy season. Then result to the quality has high demand. The price that following the demand.
Cost of good 4.2
Table 4-1 Cost of goods Sold
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At office of central rubber market
Year
Songkhla Suratthani Nakhorn- sritammarat
Local Rubber scraps
Field
Local
Field
Local
Field Latex
(factory) Latex
(factory) Latex
(factory) 2010
January 91.34 89.93 87.93 91.1 90.56 90.93 88.18 February 94.15 96.44 93.8 93.77 95 93.71 93.88 March 99.44 98.08 100.5 98.87 101.85 98.99 99.68 April 110.01 101.04 107.53 110.19 106.78 109.87 103.33 May 104.1 81.21 96.88 103.59 98.08 102.89 98.5 June 107.87 85.3 100.8 107.08 102.4 107.35 102.36 July 98.34 87 97.88 97.83 98.01 97.33 98.93
August 97.63 94.38 97.77 97.04 96.93 96.75 97.51 September 100.85 101.22 98.07 100.44 98.8 99.68 99.02
October 104.82 104.95 101.5 104.13 101.45 104.2 102.43 November 116.58 116.47 115.42 115.08 114.95 114.58 115.4 December 86.27 82.76 83.98 85.75 92.17 80.91 84.09
Our price cost, we use the local price. Which this price medium Using the cost of local price to changing up and down constantly. Which we use the price to stability with the real price. The company cannot fixed the price in the future
because have change on every time. Our price is 93 Baht.
****The reason of the company brings a data office of Songkhla Central Rubber the stability of price.Rubber Market because the Southern rubber market is the big market. In Chiang rai it not has the stability of price.
(Source: http://www.rubber.co.th/menu5.php, http://www.rubberthai.com/price/price_index.htm,)
Pricing product 4.3
Table 4-2 Pricing Product
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Year 2011 Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Cost of material (ton) 14.30 14.30 17.53 17.53 11.99 11.99 11.99 11.99 17.99 17.99 18.45 18.45 184.49 Price (Baht) 75 75 75 75 80 80 80 80 75 75 75 75 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Total 1,072,344 1,072,344 1,314,486 1,314,486 959,344 959,344 959,344 959,344 1,349,078 1,349,078 1,383,669 1,383,669 14,076,528
Year 2012 Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Cost of material (ton) 20.29 20.29 20.29 20.29 10.15 10.15 10.15 10.15 20.29 20.29 20.29 20.29 202.94 Price (Baht) 75 75 75 75 80 80 80 80 75 75 75 75 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Total 1,522,036 1,522,036 1,522,036 1,522,036 811,753 811,753 811,753 811,753 1,522,036 1,522,036 1,522,036 1,522,036 15,423,300
Year 2013 Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Cost of material (ton) 22.32 22.32 22.32 22.32 11.16 11.16 11.16 11.16 22.32 22.32 22.32 22.32 223.23 Price (Baht) 75 75 75 75 80 80 80 80 75 75 75 75 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Total 1,674,240 1,674,240 1,674,240 1,674,240 892,928 892,928 892,928 892,928 1,674,240 1,674,240 1,674,240 1,674,240 16,965,630
Year 2014 Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Cost of material (ton) 24.56 24.56 24.56 24.56 12.28 12.28 12.28 12.28 24.56 24.56 24.56 24.56 245.56 Price (Baht) 75 75 75 75 80 80 80 80 75 75 75 75 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Total 1,841,664 1,841,664 1,841,664 1,841,664 982,221 982,221 982,221 982,221 1,841,664 1,841,664 1,841,664 1,841,664 18,662,193
Year 2015 Product/Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Cost of material (ton) 27.01 27.01 27.01 27.01 13.51 13.51 13.51 13.51 27.01 27.01 27.01 27.01 270.11 Price (Baht) 75 75 75 75 80 80 80 80 75 75 75 75 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Total 2,025,830 2,025,830 2,025,830 2,025,830 1,080,443 1,080,443 1,080,443 1,080,443 2,025,830 2,025,830 2,025,830 2,025,830 20,528,412
Table 4-3 Pricing Product
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4.4.1 Cost of request Electric and Water
Electric
Request the power from Provincial electricity authority. We estimate electric power in the
factory, and officer, Request 2 transformers (1 KVA -1 MVA).
Configuration Cost (Baht)
Inspection Cost (Baht)
Average Cost(Baht)
Insurance Cost (Baht)
High voltage meter.
System under 69 KVA
Under 200 A equal to 30,000 Baht More than 200 A equal to 40,000 Baht
Under 30 A equal to 15,000 Baht More than 30 A equal to 20,000 Baht
Individual transformer. Do not think the average.
Individual transformer think 4 Baht per KVA
System more than 69 KVA
10,000 Baht
4 Baht per KVA but Under 50,000 Baht
Insurance Cost = Guarantee for debt power.
Configuration Cost = The cost of providing meter installation and operation.
Inspection Cost = The cost of send someone to check the wiring already in ther user’s
files.
Average Cost = The cost of investment in the power transformer to provide power
user that Light.
****2 Transformers (1 KVA -1 MVA). We use system under 69 KVA****
Configuration Cost (Under 200 A) 30,000 Baht
Inspection Cost (More than 30 A) 20,000 Baht
Insurance Cost (assume 10 KVA) 4,000 Baht
Total Cost per transformers 54,000 Baht
Total Cost of fees for electricity 108,000 Baht
(Source: http://www.pea.co.th/th/services/services_fee_rates.htm)
Preopening cost 4.4
EXHIBIT 4-1 The Free rate for electricity
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Water
Request the water from the Provincial Waterworks Authority. We estimate electric power in
the factory, and officer, Request 1 water meters.
Water Meter Size(Inch)
Deposit Cost (Baht)
Insurance Cost (Baht)
Labor and Equipment Cost (Baht)
Total
½ Not collected 500 3,600 4,100 ¾ Not collected 1,000 4,700 5,700 1 1,000 1,500
Expense estimates.
1 ½ 1,500 3,000 2 2,500 4,000
2 ½ 4,000 4,000 3 5,000 10,000
4 10,000 15,000 6 20,000 21,000 8 20,000 30,000
Deposit Cost = the applicant must pay for PWA on request install to be use in the survey
location and estimating the cost of installation. When the PWA receives labor and equipment
supply cost for installation already. PWA will return the deposit cost immediately. Deducted
by estimate cost that user paid already.
Insurance = PWA charged according to size water meters to secure the payment of water
bill each month. User will receive a full deposit returned upon termination of water and no
debt outstanding water bill.
Labor and Equipment Cost = There are labor cost; water meters cost, plumbing and other
devices that use to installing. From water meters to connection the pipe. This doesn’t include
pipe and equipment after the water meters that applicant must be due by them self. About
installing water meters is not over Diameter ¾ inches and the distance from the main water
distribution pipes less than 10 meters will pay the price including VAT already.
EXHIBIT 4-2 The Free rate for using water
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****1 Water Meters size 3 inch****
Deposit Cost 5,000 Baht
Insurance Cost 10,000 Baht
Labor and Equipment Cost 9,500 Baht
Total Cost of frees for using water 24,500 Baht
******* Total Cost of request Electric and Water 132,500 Baht ********
(Source: http://www.pwa.co.th/service/newuser.html)
4.4.2 Prepare to be company limited
For our business the first step we need to have a Memorandum. The rate is following
Registration Rate from Department of Business Development.
Description Baht
Registered prospectus:
Capital not exceeding 1,000,000 Baht 500
Registered capital of 100,000 Baht each set.
(Fraction of the 100,000 Baht to 100,000 Baht equivalent).
50
Capital more than 50,000,000 Baht 25,000
Incorporated company:
Capital not exceeding 1,000,000 Baht 5,000
Registered capital of 100,000 Baht each set.
(Fraction of the 100,000 Baht to 100,000 baht equivalent).
500
Capital more than 50,000,000 Baht 250,000
: According to No.3 and No.4 of ministerial regulations The capital of all partners combined approximately 20,000,000 Baht.
Registered prospectus 10,000 Baht Incorporated company 100,000 Baht Total 110,000 Baht
(Source: http://www.dbd.go.th/mainsite/index.php?id=1638 )
EXHIBIT 4-3 The company limited registration Fee rate
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4.4.3 Fees for the establishment of the factory
Following the factory act, 1992
Application for permit 100 Baht
Permit 100,000 Baht
Substitutes permit 1,000 Baht
Fees factory operation (per year) 30,000 Baht
Total 131,100 Baht
(Source:
http://www.thailandlawyercenter.com/index.php?lay=show&ac=article&Id=538974919&Nty
pe=19)
4.4.4 Land Tax
Charges at the Land Office if the Registrar.
Corporate income tax (withholding) 1% of price (no less than at market prices commerce)
Fee legal action (transfer fee). 2% of market prices commerce or price of sell up on what price is higher
The mortgage (If mortgages from financial institutions) 1% of value of the mortgages
Stamp Duty (Pay one between stamp duty or specific business)
200 Baht for 1 Baht of Stamp Duty(0.50%) following selling price but not less than market prices commerce)
Specific business Duty (Don’t pay if holding more than five years)
3.3% of selling price but not less than market prices commerce)
***The cost of land is 6,450,000 Baht***
Corporate income tax 64,500 Baht
Fee legal action 129,000 Baht
The mortgage 64,500 Baht
Stamp Duty 32,250 Baht
Total Cost of Land Tax 290,250 Baht
(Source: http://www.land.co.th/land-info-top-3.asp)
EXHIBIT 4-4 Charge at the Land Office if the Registrar
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4.4.5 Tax labels (per 500 square centimeters)
Style Baht Thai characters are. 3 Baht Thai characters mixed with the foreign language/images/other marks. 20 Baht
Signs following - No Thai characters - Have some Thai characters or All of Thai Character below
or under foreign language.
40 Baht
Label changes to the label area of an image or mark some of the signs. Already paid interest tax, which cause the signs and banners to increase the tax rate by 1,2,3 The case may be and pay especially the amount increased.
Label is under 200 Baht to pay 200 Baht instead 200 Baht
Size 4*3 M. of Factory label
120,000 square centimeters (120,000/500)*20 = 4,800 Baht
(Source: www.thailocaladmin.go.th/work/e_book/eb5/eb5_2/tax1.pdf)
EXHIBIT 4-5 Rate of Tax labels
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4.4.6 Trademark registration fee.
Following Ministerial on fees and fee waiver for a patent or petty patent Act, 2004
Patent inventions 500 Baht
Patent or petty patent 500 Baht
Total 1,000 Baht
(Source:http://www.ipthailand.go.th/ipthailand/index.php?option=com_content&task=view&id=817&Itemid=303)
4.4.7 Total Cost of Pre Opening Cost
Pre Opening Cost Baht Cost of request Electric and Water Electric 108,000 Water 24,500 Prepare to be the Company limited 110,000 Fees for the establishment of the factory 131,100 Fees for requesting permission of the foreign business for investor 32,000 Land Tax 290,250 Tax labels 4,800 Trademark registration fee 1,000
Total 701,650
Table 4-4 Total Cost of Pre Opening Cost
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4.5.1 Land
We decision to buy the land all of 4.3 Acers. This land is located near the
Chianhkhong’s friendship bridge 4th only 1-2 kilometers. And we contract with Mr. Sainatee
who is the owner by phone number 085-6664996. He sell for 600,000 Baht per Rai that all of
we buy equal to 4.3 Acers (10Rai 3Ngan).We will pay for land 6,450,000 Baht.
(Source: http://www.baanok.com/component/option,com_fireboard
/Itemid,56/func,view/id,68072/catid,30261/)
4.5.2 Building
Thai-North Rubber will hire the constructer to design and advice us to build the
factory. We choose to contract with Mr. Suvin who is the professional. He calculates for our
investment 7,000,000 baht. By refer the information from Department of Industrial
Promotion.
Operating investment cost /Operating expense 4.5
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4.5.3 Features and Dimension
All of our areas are divided into two zones; there are the zone of manufacture and
administrative zone. We allocate to each zone because of comfortable for easy to service,
contact with customer, control and operation in production.
4.5.3.1 Manufacturer zone
Our production is provided into three parts which are Rubber Smoked Sheet (RSS)
products, Block Rubber (STR) products and Rubber Testing Lab. In all of Rubber Smoked
Sheet (RSS) Product and Block rubber (STR) product are related in production together
which makes we have production in the same area into this zone and one part for Lab testing.
EXHIBIT 4-6 Total Areas of Company
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1. Latex tank
2. Latex bin
3. Cutting machine
4. Rubber bin
5. Bar presses
6. Crepe rubber machine
7. Vinyl rubber
10. Bin to clean rubber
11. Rubber rolling machine
12. Gutter cleaning rubber
13. Water tank
14. Eauong mortar
EXHIBIT 4-7 Manufacturer Zone
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4.5.4 Operating investment cost
In the production, we use many of merchandise to take products. All of this we can
calculate the number of money with is 446,800 Baht.
No. Item Picture Price
(Baht) Amount
Total
(Baht)
1 Eauong mortar as 50 pieces 14,200 4 56,800
2 Rubber rolling machine 8,500 8 68,000
3 Crepe rubber machine 30,000 2 60,000
4 Vinyl rubber 18,500 2 37,000
5 Bar presses 200,000 1 200,000
6 Cutting machine 25,000 1 25,000
Total 446,800
(Source: http://machine.yongfongthai.com/index.php?langtype=th&pageid=th_40
http://www2.diw.go.th/I_Standard/Web/pane_files/Industry12.asp)
Within the Lab room and production process are have many of equipment to concern.
And we have 3 people are lab staff and 2 people are maintenances. So, we take money for
their about 1,068,060 Baht.
EXHIBIT 4-8 Merchandise Cost
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No. Item Picture Price
(Baht) Amount
Total
(Baht)
1 Set of test substance solution TMTD
Easy Kit
100 1,560* 156,000 *
2 Set of test substance solution ZnO
Easy Kit.
100 1,560** 156,000**
3 Laboratory state 20,300 1 20,300
4 Desk set 3 seats(Lab staff 3) 25,000 1 25,000
5 Desk 3,345 2 6,690
6 Desktop PC(Lab staff 3) 27,900 3 83,700
7 Air condition 13,900 1 13,900
8 Printer 1,670 1 1,670
9. Firewood per month 2 10,080*** 604,800***
Total 1,068,060
*we take 26 days for working in month. In 5 years we will take for the set of
test substance solution ZnO Easy Kit 1,560 sets, we will use 156,000 Baht to pay for
**we take 26 days for working in month. In 5 years we will take for the set of
test substance solution TMTD Easy Kit 1,560 sets, we will use 156,000 Baht to pay for
(Source: http://www.psu.ac.th/node/947 , www.infinity-office.com , www.kssfurniture.com ,
www.techno.com)
EXHIBIT 4-9 Equipments within Lab room
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4.5.5 Production cost
Lab Staff and Maintenance Staff Salary
In the Lab room, we have Lab staff 3 people and 2 of Maintenance staff. We will pay
money for them with 26 days working per months for 5 years. So, we will take money for all
of salary in 5 years about 4,140,000 Baht
1. Lab staff salary 15,000 Baht×3 or 45,000 per Month
2. Maintenance staff salary 12,000 Baht×2 or 24,000 per Month
(Source: Department of Industrial Promotion)
Worker Salary
Our manufactory has workers with 30 people in every line of production. They are
working 8 hours in one day and take with 26 day per months. So, in 5 years we will pay for
them which 7,768,800 Baht
1. Minimum wage in Chiangrai 166 Baht/Day or 4,316 Baht/Month
(Source: http://www.ch7.com/news/news_thailand_detail.aspx?c=2&d=117291&p=4)
Electricity Fee, Water Fee and
From the information in Department of Industrial Promotion, we can estimate the cost
of electricity free around 120,000Bah per year and Water free around 60,000Baht per year.
(Source: Department of Industrial Promotion)
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Expense of maintenance building and machine
From the information in Department of Industrial Promotion, we can estimate the cost
of maintenance building around 540,000 Baht per year and cost of maintenance machine
around 168,052Baht per year.
(Source: Department of Industrial Promotion)
Lubricant expense
From the information in Department of Industrial Promotion, we can estimate the cost
of maintenance building around 60,000 Baht per year.
P a g e | 102
Operating cost : Baht
Expense Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Lab staff salary 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 540,000
Maintenance salary 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 288,000
Firewood 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 216,000
Worker salary 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 1,553,760
Electricity fee 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Water fee 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Maintenance building 540,000 540,000
Maintenance machine 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 168,048
Lubricant 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Total 250,484 250,484 250,484 250,484 250,484 250,484 250,484 250,484 250,484 250,484 250,484 790,484 3,545,808
Table 4-5 Operating expense in year 2011
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Operating cost : Baht
Expense Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Lab staff salary 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 540,000
Maintenance salary 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 288,000
Firewood 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 120,960
Worker salary 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 1,553,760
Electricity fee 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Water fee 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Maintenance building 540,000 540,000
Maintenance machine 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 168,048
Lubricant 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Total 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 782,564 3,450,768
Table 4-6 Operating expense in year 2012
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Operating cost : Baht
Expense Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Lab staff salary 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 540,000
Maintenance salary 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 288,000
Firewood 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 120,960
Worker salary 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 1,553,760
Electricity fee 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Water fee 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Maintenance building 540,000 540,000
Maintenance machine 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 168,048
Lubricant 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Total 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 782,564 3,450,768
Table 4-7 Operating expense in year 2013
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Operating cost : Baht
Expense Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Lab staff salary 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 540,000
Maintenance salary 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 288,000
Firewood 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 120,960
Worker salary 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 1,553,760
Electricity fee 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Water fee 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Maintenance building 540,000 540,000
Maintenance machine 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 168,048
Lubricant 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Total 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 782,564 3,450,768
Table 4-8 Operating expense in year 2014
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Operating cost : Baht
Expense Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Lab staff salary 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 540,000
Maintenance salary 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 288,000
Firewood 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 120,960
Worker salary 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 129,480 1,553,760
Electricity fee 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Water fee 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Maintenance building 540,000 540,000
Maintenance machine 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 14,004 168,048
Lubricant 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Total 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 782,564 3,450,768
Table 4-9 Operating expense in year 2015
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4.6.1 Logistic Management
We are also divided over the transport into two periods are inbound logistic and out
bound logistics
1. Inbound: In domestic, start from the supplier around Chiang Rai send the raw
material to us. It is including Latex. It up on the agreement between the supplier and
manufacture, which party will pay on the transportation cost.
Logistics and Transportation cost 4.6
P a g e | 108
2. Out bound: Our Company sends finished goods to customers in China. Start from
transportation Rubber (Bale) from truck to store goods in storage. Goods will
transport from the storage in a boat by using Fork Lift. There are 3 group each group
have 15 people for packing product in to container frame roof (CNTR). When the full
amount and then close. After that the Agent will inform to port know. And loading on
vessel.
Our company has the condition with customer that international shipments typically use
FOB or Free on Board. Our company delivers when the goods pass the ship’s rail at the
named port of shipment. This means that the customer has to bear all costs and risks of
loss or damage to the goods from that point and responsible for all the costs incurred after
the cargo has been loaded on board.
We transport from manufacture (A) to Chiang Khong Port (B). Distance is 1-2 km. Transport by truck Diesel Ten-wheel. Loading: 21 tons. Fuel oil: Biodiesel.
Chiang Khong Port is situated on the bank of Mekong River, Chiang Khong District,
Chiang Rai Province. The berth is width 24 meters and length 180 meters. The front of
the port is adjacent to the Mekong River opposite of Moueng Houy Sai, Bor Kaew
District, People's Democratic Republic of Laos. On the back is the road linking Chiang
Saen and Chiang Kong Districts.
(Source: http://www1.port.co.th/ckp/eng/dataset1/data2.html)
P a g e | 109
4.6.2 Inventory management
Taxes: VAT 7% and withholding of 3 % per Year.
Year 2011 2012 2013 2014 2015
Sale Forecast (price) 25,740,450 28,314,495 31,145,944 34,260,539 37,686,593
VAT 7% 1,801,831 1,982,015 2,180,216 2,398,238 2,638,061
Withholding 3% 772,213 849,435 934,378 1,027,816 1,130,598
Total 2,574,045 2,831,449 3,114,594 3,426,054 3,768,659 Per: Baht
Insurance: Our Company chooses deal business with Mittare Insurance Co., Ltd.
Cost: 17,500 Baht/Year
Detail: Cargo insurance in the country. Capital 1,500,000 per year.
Trainer protected container.
The case of an accident condition:
-10,000 Baht or 10% of damage.
- Unlimited number of flight.
- Do not notify every run.
- Protection of the full year.
-Do not notify the cabinet product.
- Consumer protection online.
- Does not cover products that are illegal or high risk.
- Suitable for car truck tractor that runs offshore shipping.
(Source: http://www.perfect-broker.co.th/product-th-353965-1647870 )
Table 4-10 Total Taxes
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Year 2011 2012 2013 2014 2015
Taxes 2,574,045 2,831,449 3,114,594 3,426,054 3,768,659
Insurance 17,500 17,500 17,500 17,500 17,500
Total 2,591,545 2,848,949 3,132,094 3,443,554 3,786,159 Per: Baht
Description Cost/Baht
Capital Costs
(opportunity cost of capital) -13,450,000-
Inventory Risk Costs
Obsolescence 0
Damage Cost 10,000
Shrinkage Cost 2,084
Relocation Cost 0
Total Cost 12,084
Per: Month Note:
Capital Cost or Opportunity cost of capital is not including in accounting because it is
not the real cost that we expense.
Our products are Block rubber and rubber smoked sheet don’t have any cost of
obsolescence.
We don’t have Relocation Cost because our company has only one warehouse near
manufactory. So we don’t have any cost of relocation.
(Source: http://logistics.arch56.com/?tag=public-warehouse-cost)
Table 4-11 Inventory Service Costs
Table 4-12 Warehousing Cost
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4.6.3 Total Logistic
Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inventory Carrying Cost
Taxes and insurance 215,962 215,962 215,962 215,962 215,962 215,962 215,962 215,962 215,962 215,962 215,962 215,962
Warehousing 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084
Subtotal 228,046 228,046 228,046 228,046 228,046 228,046 228,046 228,046 228,046 228,046 228,046 228,046
Transportation Costs
Motor Carriers :
Truck-Local (Diesel Ten-wheel) 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Tariff of Chiang Khong Port 468 468 500 500 445 445 445 445 505 505 509 509
Subtotal 2,268 2,268 2,300 2,300 2,245 2,245 2,245 2,245 2,305 2,305 2,309 2,309
Logistics Administration Not Including
Total logistics 230,314 230,314 230,346 230,346 230,291 230,291 230,291 230,291 230,351 230,351 230,356 230,356
Per: Baht
Table 4-13 Total Logistic Cost, 2011
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Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inventory Carrying Cost
Taxes and insurance 237,412 237,412 237,412 237,412 237,412 237,412 237,412 237,412 237,412 237,412 237,412 237,412
Warehousing 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084
Subtotal 249,496 249,496 249,496 249,496 249,496 249,496 249,496 249,496 249,496 249,496 249,496 249,496
Transportation Costs
Motor Carriers : Truck-Local (Diesel Ten-wheel) 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Tariff of Chiang Khong Port 528 528 528 528 426 426 426 426 528 528 528 528
Subtotal 2,328 2,328 2,328 2,328 2,226 2,226 2,226 2,226 2,328 2,328 2,328 2,328
Logistics Administration Not Including
Total logistics 251,824 251,824 251,824 251,824 251,723 251,723 251,723 251,723 251,824 251,824 251,824 251,824
Per: Baht
Table 4-14 Total Logistic Cost, 2012
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Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inventory Carrying Cost
Taxes and insurance 261,008 261,008 261,008 261,008 261,008 261,008 261,008 261,008 261,008 261,008 261,008 261,008
Warehousing 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084
Subtotal 273,092 273,092 273,092 273,092 273,092 273,092 273,092 273,092 273,092 273,092 273,092 273,092
Transportation Costs
Motor Carriers:
Truck-Local (Diesel Ten-wheel) 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Tariff of Chiang Khong Port 548 548 548 548 437 437 437 437 548 548 548 548
Subtotal 2,348 2,348 2,348 2,348 2,237 2,237 2,237 2,237 2,348 2,348 2,348 2,348
Logistics Administration Not Including
Total logistics 275,440 275,440 275,440 275,440 275,328 275,328 275,328 275,328 275,440 275,440 275,440 275,440
Per: Baht
Table 4-15 Total Logistic Cost, 2013
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Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inventory Carrying Cost
Taxes and insurance 286,963 286,963 286,963 286,963 286,963 286,963 286,963 286,963 286,963 286,963 286,963 286,963
Warehousing 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084
Subtotal 299,047 299,047 299,047 299,047 299,047 299,047 299,047 299,047 299,047 299,047 299,047 299,047
Transportation Costs
Motor Carriers: Truck-Local (Diesel Ten-wheel) 3,600 3,600 3,600 3,600 1,800 1,800 1,800 1,800 3,600 3,600 3,600 3,600
Tariff of Chiang Khong Port 596 596 596 596 448 448 448 448 596 596 596 596
Subtotal 4,196 4,196 4,196 4,196 2,248 2,248 2,248 2,248 4,196 4,196 4,196 4,196
Logistics Administration Not Including
Total logistics 303,242 303,242 303,242 303,242 301,295 301,295 301,295 301,295 303,242 303,242 303,242 303,242
Per: Baht
Table 4-16 Total Logistic Cost, 2014
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Description Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inventory Carrying Cost
Taxes and insurance 315,513 315,513 315,513 315,513 315,513 315,513 315,513 315,513 315,513 315,513 315,513 315,513
Warehousing 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084 12,084
Subtotal 327,597 327,597 327,597 327,597 327,597 327,597 327,597 327,597 327,597 327,597 327,597 327,597
Transportation Costs
Motor Carriers: Truck-Local (Diesel Ten-wheel) 3,600 3,600 3,600 3,600 1,800 1,800 1,800 1,800 3,600 3,600 3,600 3,600
Tariff of Chiang Khong Port 620 620 620 620 460 460 460 460 620 620 620 620
Subtotal 4,220 4,220 4,220 4,220 2,260 2,260 2,260 2,260 4,220 4,220 4,220 4,220
Logistics Administration Not Including
Total logistics 331,817 331,817 331,817 331,817 329,857 329,857 329,857 329,857 331,817 331,817 331,817 331,817
Per: Baht
Table 4-17 Total Logistic Cost, 2015
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4.6.3.1 Transportation Costs of Truck-Local (Diesel Ten-wheel)
For transportation, each month we separate to two times on second week and last
week of month for transport the product to the Chiang Khong Port. Our company deal with
Golden lake Co., Ltd. The rates that we agree are Diesel Ten-wheel capacity 22 tons per
times to be cost 1,800 Baht.
Our company transportation goods by pass Chiang Khong Port (Port Authority of Thailand)
We have cost of Tariff for transportation:
1. Charges Against Shipowners, Ship’s Agents or Applicants
Vessel of over 100 GT 300.- Baht
2. Charges Against Consignees, Consignors or Applicants
- Cargo Loading or Discharging Free
Conventional cargo 10.- Baht/Tonne/m3
3. Vechicles Adminission Fee
- Fee for vehicle loading or discharging within Chiang Khong Port
8-10 Wheel Truck 25.- Baht/Unit
(Source: http://www1.port.co.th/ckp/eng/dataset5/data1.html)
4.6.3.2 Logistics Administration
Cost of Logistics Administration is including with Administration Cost.
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4.7.1 Organizational structure
Administration cost 4.7
Figure 3-4 Organization Structure
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4.7.2 Administration Expense
Employee salary
General Manager 1 person 30,000
Office Manager 1 person 20,000
Plant Manager 1 person 20,000
Logistic manager 1 person 20,000
Sale and Marketing department 2 person (2*12,000) 24,000
IT support department 1 person 12,000
Logistic department 2 person (2*12,000) 24,000
Export department 2 person (2*12,000) 24,000
Accountant department 1 person 12,000
Housekeeper 1 person 8,000
Driver 2 person (2*8,500) 17,000
Security guard 4 person (2*5,000) 20,000
Total 231,000
(Resource: http://www.adecco.co.th/uploads/Knowledge-Center-Thought-
Leadership/Thailand-Salary-Guide/Adecco-Thailand-Salary-Guide-2011.pdf)
4.7.3 Administration Zone
This is Administration zone there are 7 employees (there are 3 private rooms for
executive included 4 employees).There are 1 housekeeper and 1 diver. The administration
zones have 1 small meeting room, living room, Toilet, and canteen
In outside area there are 2 sentry boxes in front of entrance door and exit door.
EXHIBIT 4-10 Wage rate for our organization
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Office equipments
In the office, we use many of equipment to operation. All of this we can calculate the
number of money with is 2,520,976 Baht.
No. Item Picture Price
(Baht) Amount
Total
(Baht)
1 Desk 29,500 7 206,500
2 Desktop PC 10,165 7 71,155
Storeroom Storeroom
Toilet
EXHIBIT 4-12 Office Equipments Cost
EXHIBIT 4-11 Administration Zone
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No. Item Picture Price
(Baht) Amount
Total
(Baht)
3 Telephone 3,100 4 12,400
4 Stationery 1,250 7 8,750
5 A4 paper 10 550 5,500
6 Ink 10 75 750
7 Receipt paper 105 12 1,260
8 Printer 1,670 2 3,340
9 Air condition 13,900 2 27,800
10 Set up cost(Air) 2,500 2 5,000
11 Table 15,000 1 15,000
12 Projector 89,900 1 89,900
13 Loudspeaker 12,900 1 12,900
14 Microphone 6,600 10 66,000
15 Sofa 12,200 1 12,200
16 Table 3,789 1 3,789
17 Flower 120 4 480
P a g e | 121
No. Item Picture Price
(Baht) Amount
Total
(Baht)
18 Carpet 440 1 440
19 Disk rack 1,279 2 2,558
20 Disk 225 5 1,125
21 Glasses 15 12 180
22 Table 5,800 2 11,600
23 Refrigerator 8,190 1 8,190
24 Sink 3,990 1 3,990
25 Lavatory 1,689 1 1,689
26 Mirror 680 1 680
27 Box 320 1 320
28 Sink 750 1 750
29 Douche 180 1 180
30 Shelf 650 1 650
31 Broom 250 1 250
32 Mop 650 1 650
P a g e | 122
No. Item Picture Price
(Baht) Amount
Total
(Baht)
33 Vigo car 607,000 1 607,000
34 Van 1,338,000 1 1,338,000
Total 2,520,976
Guardhouse equipment
In the part of Administration zone are include with guardhouse in enter and exit way.
We choose to take the guard ready-made. We will pay 103,800 Baht for.
No. Item Picture Price
(Baht) Amount
Total
(Baht)
1 Guard ready-made 50,000 2 100,000
2 Traffic cone 380 10 3,800
Total 103,800
(Source: http://www.cetechgroup.co.th/products.php,
,http://www.topvictorystar.com/index.php?lay=show&ac=article&Id=573945&Ntype=2)
EXHIBIT 4-13 Guardhouse Equipment Cost
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4.7.3.1 Administration Expense
(Source: Telephone and Internet expense: http://www.3bb.co.th/
: Electricity expense: http://www.dpu.ac.th
: Water expense: http://www.mwa.co.th/water_calculation.html
: Car insurance: www.viriyah.co.th/
: Fire insurance: http://www.dhipaya.co.th
: Machine insurance: http://www.tninsure.com
: Social security insurance: http://www.sso.go.th)
Description Base
Employee Salary
Telephone and Internet expense 17,550/month
Electricity expense 7,571.89/month
Water expense 500/month
Stationary expense 8,750/ 3 month
Gasoline Expense 5,000/month
Car insurance 7,545/y
Fire insurance 2,525/y
Machine insurance 5,000/y
Social security insurance 33,600/y
EXHIBIT 4-14 Administration Expense
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Administration cost
Base Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Employee Salary 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 2,772,000
Telephone and Internet expense 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 210,600
Electricity expense 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 90,863
Water expense 500 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Set up air-condition expense 5,000 5,000 - - - - - - - - - - - 5,000
Stationary expense 8,750 8,750 - - 8,750 - - 8,750 - - 8,750 - - 35,000
Gasoline Expense 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Car insurance 7,545 7,545 - - - - - - - - - - - 7,545
Fire insurance 2,525 2,525 - - - - - - - - - - - 2,525
Machine insurance 5,000 5,000 - - - - - - - - - - - 5,000
Social security insurance 33,600 33,600 - - - - - - - - - - - 33,600
Total 324,042 324,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 3,228,133
Table 4-18 Administration cost 2011
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Administration cost
Base Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Employee Salary 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 2,772,000
Telephone and Internet expense 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 210,600
Electricity expense 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 90,863
Water expense 500 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Set up air-condition expense 5,000 - - - - - - - - - - - - 0
Stationary expense 8,750 8,750 - - 8,750 - - 8,750 - - 8,750 - - 35,000
Gasoline Expense 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Car insurance 7,545 7,545 - - - - - - - - - - - 7,545
Fire insurance 2,525 2,525 - - - - - - - - - - - 2,525
Machine insurance 5,000 5,000 - - - - - - - - - - - 5,000
Social security insurance 33,600 33,600 - - - - - - - - - - - 33,600
Total 324,042 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 3,223,133
Table 4-19 Administration cost 2012
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Administration cost
Base Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Employee Salary 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 2,772,000
Telephone and Internet expense
17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 210,600
Electricity expense 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 90,863
Water expense 500 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Set up air-condition expense
8,750 8,750 - - 8,750 - - 8,750 - - 8,750 - - 35,000
Stationary expense 5,000 - - - - - - - - - - - - 0
Gasoline Expense 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Car insurance 7,545 7,545 - - - - - - - - - - - 7,545
Fire insurance 2,525 2,525 - - - - - - - - - - - 2,525
Machine insurance 5,000 5,000 - - - - - - - - - - - 5,000
Social security insurance
33,600 33,600 - - - - - - - - - - - 33,600
Total 324,042 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 3,223,133
Table 4-20 Administration cost 2013
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Administration cost
Base Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Employee Salary 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 2,772,000
Telephone and Internet expense 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 210,600
Electricity expense 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 90,863
Water expense 500 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Set up air-condition expense 5,000 - - - - - - - - - - - - 0
Stationary expense 8,750 8,750 - - 8,750 - - 8,750 - - 8,750 - - 35,000
Gasoline Expense 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Car insurance 7,545 7,545 - - - - - - - - - - - 7,545
Fire insurance 2,525 2,525 - - - - - - - - - - - 2,525
Machine insurance 5,000 5,000 - - - - - - - - - - - 5,000
Social security insurance 33,600 33,600 - - - - - - - - - - - 33,600
Total 324,042 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 3,223,133
Table 4-21 Administration cost 2014
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Administration cost
Base Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Employee Salary 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000 2,772,000
Telephone and Internet expense 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 17,550 210,600
Electricity expense 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 7,572 90,863
Water expense 500 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Set up air-condition expense 5,000 - - - - - - - - - - - - 0
Stationary expense 8,750 8,750 - - 8,750 - - 8,750 - - 8,750 - - 35,000
Gasoline Expense 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
Car insurance 7,545 7,545 - - - - - - - - - - - 7,545
Fire insurance 2,525 2,525 - - - - - - - - - - - 2,525
Machine insurance 5,000 5,000 - - - - - - - - - - - 5,000
Social security insurance 33,600 33,600 - - - - - - - - - - - 33,600
Total 324,042 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 3,223,133
Table 4-22 Administration cost 2015
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Administration Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Office room
Table 206,500 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 41,300 Computer 71,155 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 14,231 Telephone 21,700 904 904 904 904 904 904 904 904 904 904 904 904 10,850 Printer 3,340 56 56 56 56 56 56 56 56 56 56 56 56 668 Air Condition 27,800 463 463 463 463 463 463 463 463 463 463 463 463 5,560 Meeting room Table 15,000 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Projector 89,000 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 17,800 Loudspeaker 12,900 215 215 215 215 215 215 215 215 215 215 215 215 2,580 Microphone 66,000 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 33,000 Living room Sofa 12,200 203 203 203 203 203 203 203 203 203 203 203 203 2,440 Table 3,789 63 63 63 63 63 63 63 63 63 63 63 63 758 Canteen Refrigerator 8,190 137 137 137 137 137 137 137 137 137 137 137 137 1,638 Disk rack 2,558 107 107 107 107 107 107 107 107 107 107 107 107 1,279 Table 11,600 193 193 193 193 193 193 193 193 193 193 193 193 2,320 Sink 3,990 67 67 67 67 67 67 67 67 67 67 67 67 798
Table 4-23 Depreciation cost 2011
Depreciation cost 4.8
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Administration Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Toilet
Lavatory 1,680 28 28 28 28 28 28 28 28 28 28 28 28 336
Mirror 680 11 11 11 11 11 11 11 11 11 11 11 11 136
Box 320 5 5 5 5 5 5 5 5 5 5 5 5 64
Sink 750 13 13 13 13 13 13 13 13 13 13 13 13 150
Douche 180 8 8 8 8 8 8 8 8 8 8 8 8 90
Storeroom
Shelf 650 11 11 11 11 11 11 11 11 11 11 11 11 130 Office Transportation
Vigo car 607,000 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 121,400
VAN 1,338,000 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 26,760
Guard ready- made 100,000 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000
Total 2,604,982 23,941 23,941 23,941 23,941 23,941 23,941 23,941 23,941 23,941 23,941 23,941 23,941 287,288
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Administration Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Office room Table 206,500 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 41,300 Computer 71,155 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 14,231 Telephone 21,700 904 904 904 904 904 904 904 904 904 904 904 904 10,850 Printer 3,340 56 56 56 56 56 56 56 56 56 56 56 56 668 Air Condition 27,800 463 463 463 463 463 463 463 463 463 463 463 463 5,560 Meeting room Table 15,000 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Projector 89,000 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 17,800 Loudspeaker 12,900 215 215 215 215 215 215 215 215 215 215 215 215 2,580 Microphone 66,000 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 33,000 Living room Sofa 12,200 203 203 203 203 203 203 203 203 203 203 203 203 2,440 Table 3,789 63 63 63 63 63 63 63 63 63 63 63 63 758 Canteen Refrigerator 8,190 137 137 137 137 137 137 137 137 137 137 137 137 1,638 Disk rack 2,558 107 107 107 107 107 107 107 107 107 107 107 107 1,279 Table 11,600 193 193 193 193 193 193 193 193 193 193 193 193 2,320 Sink 3,990 67 67 67 67 67 67 67 67 67 67 67 67 798
Table 4-24 Depreciation cost 2012
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Administration Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Toilet
Lavatory 1,680 28 28 28 28 28 28 28 28 28 28 28 28 336
Mirror 680 11 11 11 11 11 11 11 11 11 11 11 11 136
Box 320 5 5 5 5 5 5 5 5 5 5 5 5 64
Sink 750 13 13 13 13 13 13 13 13 13 13 13 13 150
Douche 180 8 8 8 8 8 8 8 8 8 8 8 8 90
Storeroom
Shelf 650 11 11 11 11 11 11 11 11 11 11 11 11 130 Office Transportation
Vigo car 607,000 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 121,400
VAN 1,338,000 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 26,760 Guard ready- made 100,000 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000
Total 2,604,982 23,941 23,941 23,941 23,941 23,941 23,941 23,941 23,941 23,941 23,941 23,941 23,941 287,288
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Administration Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Office room Table 206,500 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 41,300 Computer 71,155 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 14,231 Telephone 21,700 0 0 0 0 0 0 0 0 0 0 0 0 0
Printer 3,340 56 56 56 56 56 56 56 56 56 56 56 56 668
Air Condition 27,800 463 463 463 463 463 463 463 463 463 463 463 463 5,560 Meeting room Table 15,000 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Projector 89,000 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 17,800 Loudspeaker 12,900 215 215 215 215 215 215 215 215 215 215 215 215 2,580 Microphone 66,000 0 0 0 0 0 0 0 0 0 0 0 0 0 Living room Sofa 12,200 203 203 203 203 203 203 203 203 203 203 203 203 2,440 Table 3,789 63 63 63 63 63 63 63 63 63 63 63 63 758 Canteen Refrigerator 8,190 137 137 137 137 137 137 137 137 137 137 137 137 1,638 Disk rack 2,558 0 0 0 0 0 0 0 0 0 0 0 0 0 Table 11,600 193 193 193 193 193 193 193 193 193 193 193 193 2,320 Sink 3,990 67 67 67 67 67 67 67 67 67 67 67 67 798
Table 4-25 Depreciation cost 2013
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Administration Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Toilet Lavatory 1,680 28 28 28 28 28 28 28 28 28 28 28 28 336 Mirror 680 11 11 11 11 11 11 11 11 11 11 11 11 136 Box 320 5 5 5 5 5 5 5 5 5 5 5 5 64 Sink 750 13 13 13 13 13 13 13 13 13 13 13 13 150 Douche 180 0 0 0 0 0 0 0 0 0 0 0 0 0 Storeroom Shelf 650 11 11 11 11 11 11 11 11 11 11 11 11 130 Office Transportation
Vigo car 607,000 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 121,400 VAN 1,338,000 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 26,760 Guard ready- made 100,000 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000
Total 2,604,982 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 242,069
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Administration Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Office room Table 206,500 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 41,300 Computer 71,155 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 14,231 Telephone 21,700 0 0 0 0 0 0 0 0 0 0 0 0 0
Printer 3,340 56 56 56 56 56 56 56 56 56 56 56 56 668
Air Condition 27,800 463 463 463 463 463 463 463 463 463 463 463 463 5,560 Meeting room Table 15,000 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Projector 89,000 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 17,800 Loudspeaker 12,900 215 215 215 215 215 215 215 215 215 215 215 215 2,580 Microphone 66,000 0 0 0 0 0 0 0 0 0 0 0 0 0 Living room Sofa 12,200 203 203 203 203 203 203 203 203 203 203 203 203 2,440 Table 3,789 63 63 63 63 63 63 63 63 63 63 63 63 758 Canteen Refrigerator 8,190 137 137 137 137 137 137 137 137 137 137 137 137 1,638 Disk rack 2,558 0 0 0 0 0 0 0 0 0 0 0 0 0 Table 11,600 193 193 193 193 193 193 193 193 193 193 193 193 2,320 Sink 3,990 67 67 67 67 67 67 67 67 67 67 67 67 798
Table 4-26 Depreciation cost 2014
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Administration Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Toilet Lavatory 1,680 28 28 28 28 28 28 28 28 28 28 28 28 336 Mirror 680 11 11 11 11 11 11 11 11 11 11 11 11 136 Box 320 5 5 5 5 5 5 5 5 5 5 5 5 64 Sink 750 13 13 13 13 13 13 13 13 13 13 13 13 150 Douche 180 0 0 0 0 0 0 0 0 0 0 0 0 0 Storeroom Shelf 650 11 11 11 11 11 11 11 11 11 11 11 11 130 Office Transportation
Vigo car 607,000 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 121,400 VAN 1,338,000 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 26,760 Guard ready- made 100,000 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000
Total 2,604,982 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 242,069
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Administration Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Office room Table 206,500 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 3,442 41,300 Computer 71,155 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 1,186 14,231 Telephone 21,700 0 0 0 0 0 0 0 0 0 0 0 0 0 Printer 3,340 56 56 56 56 56 56 56 56 56 56 56 56 668 Air Condition 27,800 463 463 463 463 463 463 463 463 463 463 463 463 5,560 Meeting room Table 15,000 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Projector 89,000 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 1,483 17,800 Loudspeaker 12,900 215 215 215 215 215 215 215 215 215 215 215 215 2,580 Microphone 66,000 0 0 0 0 0 0 0 0 0 0 0 0 0 Living room Sofa 12,200 203 203 203 203 203 203 203 203 203 203 203 203 2,440 Table 3,789 63 63 63 63 63 63 63 63 63 63 63 63 758 Canteen Refrigerator 8,190 137 137 137 137 137 137 137 137 137 137 137 137 1,638 Disk rack 2,558 0 0 0 0 0 0 0 0 0 0 0 0 0 Table 11,600 193 193 193 193 193 193 193 193 193 193 193 193 2,320 Sink 3,990 67 67 67 67 67 67 67 67 67 67 67 67 798
Table 4-27 Depreciation cost 2015
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Administration Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Toilet Lavatory 1,680 28 28 28 28 28 28 28 28 28 28 28 28 336 Mirror 680 11 11 11 11 11 11 11 11 11 11 11 11 136 Box 320 5 5 5 5 5 5 5 5 5 5 5 5 64 Sink 750 13 13 13 13 13 13 13 13 13 13 13 13 150 Douche 180 0 0 0 0 0 0 0 0 0 0 0 0 0 Storeroom Shelf 650 11 11 11 11 11 11 11 11 11 11 11 11 130 Office Transportation
Vigo car 607,000 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 10,117 121,400 VAN 1,338,000 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 2,230 26,760 Guard ready- made 100,000 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000
Total 2,604,982 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 20,172 242,069
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Technical Feasibility Conclusion
In now the rubber are the most popular. Which was beginning plant in the various
areas on Chiang Rai province? Our company’s “Thai North Rubber Industry” has interesting
to rubber process for export. Our divides the categories of product bring to process are rubber
process is the Rib Smoked Sheet or RSS and STR block rubber. This is following the data of
company. We emphasize the high export the STR block rubber are 40% and Rib Smoked
Sheet are 30% .The trade route of company to using is emphasize save a time and save cost
.Including seek the location to export near the production located. We think is the trade route
will can to be able to have the high possibility in export the rubber process to the best
outcome.
The company fixed price follows the purchase price and sale price. Domestic
purchase price hold the price of central rubber market is purchase from the agriculturist and
sale price for export. We using the predict price of before market follow the world price.
Which using price from the appropriate of production and the capability of purchase for bring
the process.
In the process for our step, first is the direct purchase the field latex from the
agriculturist and purchase the middleman to purchase from the agriculturist. Second lead to
the factory for process in the step such as measure the quality of the latex it have the level
quality to how the difference, Third, process in production of the Rib Smoked Sheet or RSS
and STR block rubber.
In the export department, first we seek the location can to support and ready to
purchase our product, contact the export data and testing the possibility for export. We think
the rubber process is interesting. The companies have the data for ready to export. For the
located or stand the factory. We have the location near with the ChiangKhong district in
Chiang Rai province. Far the Chiang Khong district in the distance is 2 kilometer.
In the part of management the company have the operation from the step is the seek
the location, seek the data for setting the factory, equipment for purchasing. For the expense
Conclusion 4.9
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of all operation, which separate is operation cost, preoperational cost, logistic. Which have
the detail to differences for our customer we emphasize to the employee have the high skill.
Ready to cooperation with the product export company and increase the responsibility to
work. The employee has the high effectiveness in the future.
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Chapter 5
Financial Analysis
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5.1.1 Total requirement and the source fund
5.1.1.1 Total requirement
Total requirement
Description Baht
Preopening Cost 596,650 Operating Investment 8,514,860 Administrative Investment 2,624,776 Land Cost 6,450,000 Inventory purchasing 6,435,112 Operating Expense 101,553 Administrative Expense 71,822
Total funding requirement 24,794,774
The table shows above represents the total funding requirement of the beginning of
this project. There are 24,794,774 Baht of Total requirement
Operating Investment Baht
Production machine 7,000,000 Testing Lab Equipment 446,800 Building 1,068,060 Total 8,514,860
Financial Statement
Financial Analysis
5.1
Table 5-2 Operating Investment
Table 5-1 Total requirement
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Administrative investment Baht
Office equipments 2,520,976 Supply 103,800 Total 2,624,776
Inventory purchasing, Operating Expense and Administrative Expense, we use
first 3 months of 2011 because we have the condition about Account Receivable for
customers must to pay money within 3 months. So we want the money to operation within
these 3 months.
Inventory purchasing Baht
January 1,875,000
February 1,875,000
March 2,325,000
Total 6,075,000
Operating Expense Baht
January 1,994,885 February 1,994,885 March 2,445,343 Total 6,435,112
Table 5-3 Administrative investment
Table 5-4 Inventory purchasing
Table 5-5 Operating Expense
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Administrative Expense Baht
January 23,941 February 23,941 March 23,941 Total 71,822
5.1.1.2 The source of fund
Our company will borrowing fund from investor who interest this project and want to
invest with us. Total requirement is 25,000,000 Baht. So, a loan amounts of 25,000,000 Baht
within 10 years of repayment. Interest will be 12% per annum.
The condition that the investor will be following: The interest not more than 15% per year of
the loan amount following the law of Thailand.
The reasons that make investor invest with us:
1. According to the Daily interest rate of commercial banks from Bank of
Thailand. The interest rate of our company more than average interest rate of
commercial banks. Minimum loan rate of Daily interest rate of commercial banks
have Average of Commercial Banks registered in Thailand is 6.7791% and Average
of Foreign Bank Branches is 7.5417%.
So, the interest loan rate that we have 12% more than 3-4% of commercial banks.
2. The length that we have pay loan are only 10 years. The investor will get
refund faster.
3. The investor not have risk with net income of our business if the business
loss the investor not responsible with us. We will continue pay the money that we
loan and the interest too.
Table 5-6 Administrative Expense
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5.1.2 Income statement
Thai-North Rubber Industry Company Income Statement
For Year Ended December 31, 2011(Baht)
Period Starting: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Sales Sales 1,994,885 1,994,885 2,445,343 2,445,343 1,673,129 1,673,129 1,673,129 1,673,129 2,509,694 2,509,694 2,574,045 2,574,045 25,740,450
Total Sales 1,994,885 1,994,885 2,445,343 2,445,343 1,673,129 1,673,129 1,673,129 1,673,129 2,509,694 2,509,694 2,574,045 2,574,045 25,740,450 Less Cost of Goods Sold
Materials 1,072,344 1,072,344 1,314,486 1,314,486 959,344 959,344 959,344 959,344 1,349,078 1,349,078 1,383,669 1,383,669 14,076,528 Operation expense 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 782,564 3,450,768 Logistic 230,314 230,314 230,346 230,346 230,291 230,291 230,291 230,291 230,351 230,351 230,356 230,356 2,763,898
Total Cost of Goods Sold 1,545,222 1,545,222 1,787,396 1,787,396 1,432,199 1,432,199 1,432,199 1,432,199 1,821,992 1,821,992 1,856,589 2,396,589 20,291,194
Gross Profit 449,663 449,663 657,947 657,947 240,930 240,930 240,930 240,930 687,701 687,701 717,456 177,456 5,449,256 Operating Expenses
Selling 0 0 0 3,000 0 1,000 1,000 4,000 1,200 1,000 1,200 4,500 16,900 administration expense 324,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 3,228,133 Pre opening expense 701,650 - - - - - - - - - - - 701,650 Supplies expense 13,760 - - - - - - - - - - - 13,760 Depreciation 57,791 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 693,505
Total Operating Expenses 1,097,243 319,414 319,414 331,164 319,414 320,414 329,164 323,414 320,614 329,164 320,614 323,914 4,653,947
Operating Income -647,580 130,249 338,533 326,783 -78,484 -79,484 -88,234 -82,484 367,087 358,537 396,842 -146,458 795,308
Interest income (expense) 250,000 248,913 247,816 246,707 245,587 244,456 243,314 242,161 240,995 239,819 238,630 237,429 2,925,827
Income (Loss) Before Taxes -897,580 -118,664 90,717 80,076 -324,071 -323,940 -331,548 -324,644 126,092 118,719 158,212 -383,887 -2,130,519
Income Taxes 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Income (Loss) -897,580 -118,664 90,717 80,076 -324,071 -323,940 -331,548 -324,644 126,092 118,719 158,212 -383,887 -2,130,519
Cumulative Net Income
(Loss) -897,580 -1,016,244 -925,527 -845,451 -1,169,522 -1,493,462 -1,825,010 -2,149,655 -2,023,563 -1,904,844 -1,746,632 -2,130,519 0
Table 5-7 Income Statement, 2011
Note: Tax: According to our company is company limited. So, we must to pay the tax in rate of 30% per annual equal to 2.5% each month following the Revenue Department.
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Thai-North Rubber Industry Company Income Statement
For Year Ended December 31, 2012(Baht)
Period Starting: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Sales Sales 2,831,449 2,831,449 2,831,449 2,831,449 1,415,725 1,415,725 1,415,725 1,415,725 2,831,449 2,831,449 2,831,449 2,831,449 28,314,495
Total Sales 2,831,449 2,831,449 2,831,449 2,831,449 1,415,725 1,415,725 1,415,725 1,415,725 2,831,449 2,831,449 2,831,449 2,831,449 28,314,495
Less Cost of Goods Sold Materials 1,522,036 1,522,036 1,522,036 1,522,036 811,753 811,753 811,753 811,753 1,522,036 1,522,036 1,522,036 1,522,036 15,423,300 Operation expense 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 782,564 3,450,768 Logistic 251,824 251,824 251,824 251,824 251,723 251,723 251,723 251,723 251,824 251,824 251,824 251,824 3,021,487
Total Cost of goods sold 2,016,425 2,016,425 2,016,425 2,016,425 1,306,040 1,306,040 1,306,040 1,306,040 2,016,425 2,016,425 2,016,425 2,556,425 21,895,555
Gross Profit 815,025 815,025 815,025 815,025 109,685 109,685 109,685 109,685 815,025 815,025 815,025 275,025 6,418,940 Operating Expenses
Selling 200 0 200 4000 200 0 200 4000 200 0 200 4000 13,200 administration expense 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 3,223,133 Pre opening expense 0 0 0 0 0 0 0 0 0 0 0 0 0 Supplies expense 13,760 - - - - - - - - - - - 13,760 Depreciation 57,791 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 693,505
Total Operating Expenses 390,793 319,414 319,614 332,164 319,614 319,414 328,364 323,414 319,614 328,164 319,614 323,414 3,943,597
Operating Income
424,232 495,611 495,411 482,861 -209,929 -209,729 -218,679 -213,729 495,411 486,861 495,411 -48,389 2,475,343 Interest income (expense) 236,217 234,992 233,756 232,506 231,245 229,970 228,683 227,383 226,070 224,744 223,405 222,052 2,751,024
Income (Loss) Before Taxes 188,015 260,619 261,655 250,355 -441,173 -439,699 -447,362 -441,112 269,341 262,117 272,006 -270,441 -275,681
Income Taxes -6,892 -6,892 -6,892 -6,892 -6,892 -6,892 -6,892 -6,892 -6,892 -6,892 -6,892 -6,892 -82,704
Net Income (Loss) 194,907 267,511 268,547 257,247 -434,281 -432,807 -440,470 -434,220 276,233 269,009 278,898 -263,549 -192,977
Cumulative Net Income (Loss)
-2,130,519 -1,935,612 -1,668,101 -1,399,554 -1,142,307 -1,576,589 -2,009,396 -2,449,866 -2,884,086 -2,607,853 -2,338,845 -2,059,947 -2,323,496 0
Table 5-8 Income Statement, 2012
Note: Tax: According to our company is company limited. So, we must to pay the tax in rate of 30% per annual equal to 2.5% each month following the Revenue Department.
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Thai-North Rubber Industry Company Income Statement
For Year Ended December 31, 2013 (Baht) Period Starting: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Sales Sales 3,114,594 3,114,594 3,114,594 3,114,594 1,557,297 1,557,297 1,557,297 1,557,297 3,114,594 3,114,594 3,114,594 3,114,594 31,145,944
Total Sales 3,114,594 3,114,594 3,114,594 3,114,594 1,557,297 1,557,297 1,557,297 1,557,297 3,114,594 3,114,594 3,114,594 3,114,594 31,145,944
Less Cost of Goods Sold
Materials 1,674,240 1,674,240 1,674,240 1,674,240 892,928 892,928 892,928 892,928 1,674,240 1,674,240 1,674,240 1,674,240 34,288,431 Operation expense 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 782,564 3,450,768 Logistic 275,440 275,440 275,440 275,440 275,328 275,328 275,328 275,328 275,440 275,440 275,440 275,440 3,304,835
Total Cost of goods sold 2,192,244 2,192,244 2,192,244 2,192,244 1,410,820 1,410,820 1,410,820 1,410,820 2,192,244 2,192,244 2,192,244 2,732,244 23,721,233
Gross Profit 922,351 922,351 922,351 922,351 146,477 146,477 146,477 146,477 922,351 922,351 922,351 382,351 7,424,712 Operating Expenses
Selling 200 0 200 3500 200 0 200 3500 200 0 200 3500 11,700 administration
expense 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 3,223,133
Pre opening expense 0 0 0 0 0 0 0 0 0 0 0 0 0 Supplies expense 13,760 0 - - - - - - - - - - 13,760 Depreciation 53,107 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 637,294
Total Operating Expenses 386,109 314,730 314,930 326,980 314,930 314,730 323,680 318,230 314,930 323,480 314,930 318,230 3,885,887
Operating Income
536,241 607,621 607,421 595,371 -168,453 -168,253 -177,203 -171,753 607,421 598,871 607,421 64,121 3,538,825 Interest income (expense) 220,686 219,306 217,912 216,505 215,083 213,647 212,197 210,732 209,252 207,758 206,249 204,725 2,554,052
Income (Loss) Before Taxes 315,555 388,315 389,508 378,866 -383,536 -381,900 -389,400 -382,485 398,168 391,113 401,172 -140,604 984,773
Income Taxes 24,619 24,619 24,619 24,619 24,619 24,619 24,619 24,619 24,619 24,619 24,619 24,619 295,432
Net Income (Loss) 290,936 363,695 364,889 354,247 -408,155 -406,519 -414,019 -407,104 373,549 366,493 376,552 -165,223 689,341
Cumulative Net Income (Loss)
-2,323,496
-2,032,560 -1,668,864 -1,303,975 -949,728 -1,357,884 -1,764,403 -2,178,422 -2,585,526 -2,211,977 -1,845,484 -1,468,931 -1,634,155 0
Table 5-9 Income Statement, 2013
Note: Tax: According to our company is company limited. So, we must to pay the tax in rate of 30% per annual equal to 2.5% each month following the Revenue Department.
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Thai-North Rubber Industry Company Income Statement
For Year Ended December 31, 2014 (Baht)
Period Starting: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Sales Sales 3,426,054 3,426,054 3,426,054 3,426,054 1,713,027 1,713,027 1,713,027 1,713,027 3,426,054 3,426,054 3,426,054 3,426,054 34,260,539
Total Sales 3,426,054 3,426,054 3,426,054 3,426,054 1,713,027 1,713,027 1,713,027 1,713,027 3,426,054 3,426,054 3,426,054 3,426,054 34,260,539
Less Cost of Goods Sold Materials 1,841,664 1,841,664 1,841,664 1,841,664 982,221 982,221 982,221 982,221 1,841,664 1,841,664 1,841,664 1,841,664 18,662,193 Operation expense 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 782,564 3,450,768 Logistic 303,242 303,242 303,242 303,242 301,295 301,295 301,295 301,295 303,242 303,242 303,242 303,242 3,631,117
Total Cost of goods sold 2,387,470 2,387,470 2,387,470 2,387,470 1,526,079 1,526,079 1,526,079 1,526,079 2,387,470 2,387,470 2,387,470 2,927,470 25,744,078
Gross Profit 1,038,584 1,038,584 1,038,584 1,038,584 186,948 186,948 186,948 186,948 1,038,584 1,038,584 1,038,584 498,584 8,516,461 Operating Expenses
Selling 200 0 200 3500 200 0 200 3500 200 0 200 3500 11,700 administration expense 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 3,223,133 Pre opening expense 0 0 0 0 0 0 0 0 0 0 0 0 0 Supplies expense 13,760 0 0 - - - - - - - - - 13,760 Depreciation 53,107 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 637,294
Total Operating Expenses 386,109 314,730 314,930 326,980 314,930 314,730 323,680 318,230 314,930 323,480 314,930 318,230 3,885,887
Operating Income
652,475 723,854 723,654 711,604 -127,982 -127,782 -136,732 -131,282 723,654 715,104 723,654 180,354 4,630,574 Interest income (expense) 203,185 201,630 200,060 198,474 196,872 195,254 193,619 191,969 190,302 188,618 186,917 185,200 2,332,098
Income (Loss) Before Taxes 449,289 522,224 523,594 513,130 -324,854 -323,036 -330,351 -323,251 533,352 526,486 536,737 -4,846 2,298,476
Income Taxes 57,462 57,462 57,462 57,462 57,462 57,462 57,462 57,462 57,462 57,462 57,462 57,462 689,543
Net Income (Loss) 391,828 464,762 466,132 455,668 -382,316 -380,498 -387,813 -380,713 475,890 469,024 479,275 -62,308 1,608,933
Cumulative Net Income (Loss)
-1,634,155
-1,242,327 -777,565 -311,433 144,235 -238,080 -618,578 -1,006,391 -1,387,104 -911,213 -442,189 37,086 -25,222 0
Note: Tax: According to our company is company limited. So, we must to pay the tax in rate of 30% per annual equal to 2.5% each month following the Revenue Department.
Table 5-10 Income Statement, 2014
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Thai-North Rubber Industry Company Income Statement
For Year Ended December 31, 2015 (Baht)
Period Starting: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Sales Sales 3,768,659 3,768,659 3,768,659 3,768,659 1,884,330 1,884,330 1,884,330 1,884,330 3,768,659 3,768,659 3,768,659 3,768,659 37,686,593
Total Sales 3,768,659 3,768,659 3,768,659 3,768,659 1,884,330 1,884,330 1,884,330 1,884,330 3,768,659 3,768,659 3,768,659 3,768,659 37,686,593
Less Cost of Goods Sold
Materials 2,025,830 2,025,830 2,025,830 2,025,830 1,080,443 1,080,443 1,080,443 1,080,443 2,025,830 2,025,830 2,025,830 2,025,830 20,528,412 Operation expense 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 242,564 782,564 3,450,768 Logistic 331,817 331,817 331,817 331,817 329,857 329,857 329,857 329,857 331,817 331,817 331,817 331,817 3,973,968
Total Cost of goods sold 2,600,212 2,600,212 2,600,212 2,600,212 1,652,864 1,652,864 1,652,864 1,652,864 2,600,212 2,600,212 2,600,212 3,140,212 27,953,148
Gross Profit 1,168,448 1,168,448 1,168,448 1,168,448 231,466 231,466 231,466 231,466 1,168,448 1,168,448 1,168,448 628,448 9,733,444 Operating Expenses
Selling 200 0 200 3500 200 0 200 3500 200 0 200 3500 11,700 administration
expense 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 3,223,133
Pre opening expense 0 0 0 0 0 0 0 0 0 0 0 0 0 Supplies expense 13,760 0 0 0 - - - - - - - - 13,760 Depreciation 53,107 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 637,294
Total Operating Expenses 386,109 314,730 314,930 326,980 314,930 314,730 323,680 318,230 314,930 323,480 314,930 318,230 3,885,887
Operating Income 782,339 853,718 853,518 841,468 -83,464 -83,264 -92,214 -86,764 853,518 844,968 853,518 310,218 5,847,557
Interest income (expense) 183,465 181,713 179,943 178,156 176,351 174,527 172,686 170,826 168,947 167,050 165,134 163,198 2,081,995
Income (Loss) Before Taxes 598,874 672,005 673,575 663,312 -259,815 -257,792 -264,900 -257,590 684,571 677,918 688,384 147,020 3,765,562
Income Taxes 94,139 94,139 94,139 94,139 94,139 94,139 94,139 94,139 94,139 94,139 94,139 94,139 1,129,669
Net Income (Loss) 504,735 577,866 579,436 569,173 -353,954 -351,931 -359,039 -351,729 590,432 583,779 594,245 52,881 2,635,893
Cumulative Net Income (Loss) -25,222 479,513 1,057,379 1,636,815 2,205,988 1,852,034 1,500,104 1,141,065 789,335 1,379,767 1,963,546 2,557,791 2,610,672 0
Table 5-11 Income Statement, 2015
Note: Tax: According to our company is company limited. So, we must to pay the tax in rate of 30% per annual equal to 2.5% each month following the Revenue Department.
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5.1.3 Balance Sheet
Thai-North Rubber Industry Company Balance Sheet
December 31, 2011 (Baht)
Beginning JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
ASSETS Current Assets Cash 8,346,958 6,800,026 6,030,925 5,334,969 5,225,729 4,942,887 4,794,182 4,636,727 4,253,358 4,068,591 3,875,274 3,700,956 3,234,307
Accounts Receivable 598,465 1,196,931 1,930,534 2,065,671 1,969,144 1,737,480 1,505,816 1,505,816 1,756,786 2,007,755 2,278,030 2,297,335
Total Current Assets 8,346,958 7,398,492 7,227,856 7,265,503 7,291,400 6,912,031 6,531,662 6,142,543 5,759,174 5,825,377 5,883,029 5,978,986 5,531,642
Non-current Assets Land 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000
Operations asset 7,598,060 7,564,210 7,530,358 7,496,507 7,462,655 7,428,804 7,394,952 7,361,101 7,327,249 7,293,398 7,259,546 7,225,695 7,191,843
Administration asset 2,604,982 2,581,041 2,557,101 2,533,160 2,509,219 2,485,279 2,461,338 2,437,397 2,413,457 2,389,516 2,365,576 2,341,635 2,317,694 Total non-current assets 16,653,042 16,595,251 16,537,459 16,479,667 16,421,875 16,364,083 16,306,290 16,248,498 16,190,706 16,132,914 16,075,122 16,017,330 15,959,537
Total Assets 25,000,000 23,993,743 23,765,315 23,745,170 23,713,275 23,276,114 22,837,953 22,391,042 21,949,880 21,958,290 21,958,150 21,996,315 21,491,180 LIABILITIES Long Term Liabilities Long Term Debt 25,000,000 24,891,323 24,781,558 24,670,697 24,558,726 24,445,636 24,331,415 24,216,052 24,099,535 23,981,853 23,862,994 23,742,947 23,621,699
Income Tax Payable 0 0 0 0 0 0 0 0 0 0 0 0
Total liabilities 25,000,000 24,891,323 24,781,558 24,670,697 24,558,726 24,445,636 24,331,415 24,216,052 24,099,535 23,981,853 23,862,994 23,742,947 23,621,699 EQUITY Retained Earnings - -897,580 -1,016,244 -925,527 -845,451 -1,169,522 -1,493,462 -1,825,010 -2,149,655 -2,023,563 -1,904,844 -1,746,632 -2,130,519
Total Equity 0 -897,580 -1,016,244 -925,527 -845,451 -1,169,522 -1,493,462 -1,825,010 -2,149,655 -2,023,563 -1,904,844 -1,746,632 -2,130,519 Total Liabilities Equity 25,000,000 23,993,743 23,765,315 23,745,170 23,713,275 23,276,114 22,837,953 22,391,042 21,949,880 21,958,290 21,958,150 21,996,315 21,491,180
Table 5-12 Balance Sheet, 2011
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Thai-North Rubber Industry Company Balance Sheet
December 31, 2012 (Baht)
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ASSETS Current Assets Cash 3,261,126 3,378,631 3,495,935 3,677,911 3,591,814 3,505,917 3,411,071 2,896,457 2,666,265 2,427,523 2,197,331 1,930,761 Accounts Receivable 2,393,862 2,471,083 2,548,305 2,548,305 2,123,587 1,698,870 1,274,152 1,274,152 1,698,870 2,123,587 2,548,305 2,548,305
Total Current Assets 5,654,988 5,849,714 6,044,239 6,226,215 5,715,401 5,204,787 4,685,223 4,170,609 4,365,135 4,551,110 4,745,636 4,479,066
Non-current Assets Land 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000
Operations asset 7,157,993 7,124,142 7,090,290 7,056,439 7,022,587 6,988,736 6,954,884 6,921,033 6,887,181 6,853,330 6,819,478 6,785,627
Administration asset 2,293,754 2,269,813 2,245,872 2,221,932 2,197,991 2,174,050 2,150,110 2,126,169 2,102,228 2,078,288 2,054,347 2,030,406 Total non-current assets 15,901,747 15,843,954 15,786,162 15,728,370 15,670,578 15,612,786 15,554,994 15,497,202 15,439,409 15,381,617 15,323,825 15,266,033
Total Assets 21,556,735 21,693,668 21,830,402 21,954,585 21,385,979 20,817,573 20,240,217 19,667,810 19,804,544 19,932,727 20,069,461 19,745,099 LIABILITIES Long Term Liabilities Long Term Debt 23,499,239 23,375,554 23,250,632 23,124,461 22,997,028 22,868,321 22,738,327 22,607,033 22,474,425 22,340,492 22,205,220 22,068,595 Income Tax Payable -6,892 -13,784 -20,676 -27,568 -34,460 -41,352 -48,244 -55,136 -62,028 -68,920 -75,812 0
Total liabilities 23,492,347 23,361,769 23,229,956 23,096,893 22,962,568 22,826,969 22,690,082 22,551,896 22,412,397 22,271,572 22,129,408 22,068,595 EQUITY Retained Earnings -1,935,612 -1,668,101 -1,399,554 -1,142,307 -1,576,589 -2,009,396 -2,449,866 -2,884,086 -2,607,853 -2,338,845 -2,059,947 -2,323,496
Total Equity -1,935,612 -1,668,101 -1,399,554 -1,142,307 -1,576,589 -2,009,396 -2,449,866 -2,884,086 -2,607,853 -2,338,845 -2,059,947 -2,323,496 Total Liabilities Equity 21,556,735 21,693,668 21,830,402 21,954,585 21,385,979 20,817,573 20,240,217 19,667,810 19,804,544 19,932,727 20,069,461 19,745,099
Table 5-13 Balance Sheet, 2012
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Thai-North Rubber Industry Company Balance Sheet
December 31, 2013 (Baht)
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
ASSETS Current Assets Cash 2,076,489 2,293,597 2,510,505 2,800,306 2,793,473 2,786,840 2,771,256 2,293,934 2,128,596 1,954,708 1,789,370 1,252,490
Accounts Receivable 2,633,248 2,718,192 2,803,135 2,803,135 2,335,946 1,868,757 1,401,567 1,401,567 1,868,757 2,335,946 2,803,135 2,803,135
Total Current Assets 4,709,737 5,011,789 5,313,640 5,603,441 5,129,419 4,655,596 4,172,824 3,695,502 3,997,353 4,290,654 4,592,505 4,055,625
Non-current Assets Land 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000
Operations asset 6,752,692 6,719,756 6,686,821 6,653,885 6,620,950 6,588,014 6,555,079 6,522,143 6,489,208 6,456,272 6,423,337 6,390,401
Administration asset 2,010,234 1,990,062 1,969,889 1,949,717 1,929,544 1,909,372 1,889,200 1,869,027 1,848,855 1,828,682 1,808,510 1,788,338 Total non-current assets 15,212,926 15,159,818 15,106,710 15,053,602 15,000,494 14,947,386 14,894,278 14,841,170 14,788,062 14,734,955 14,681,847 14,628,739
Total Assets 19,922,663 20,171,606 20,420,350 20,657,043 20,129,913 19,602,982 19,067,102 18,536,672 18,785,415 19,025,609 19,274,352 18,684,363 LIABILITIES Long Term Liabilities Long Term Debt 21,930,603 21,791,232 21,650,467 21,508,294 21,364,700 21,219,669 21,073,189 20,925,243 20,775,818 20,624,899 20,472,471 20,318,518
Income Tax Payable 24,619 49,239 73,858 98,477 123,097 147,716 172,335 196,955 221,574 246,193 270,813 0
Total liabilities 21,955,223 21,840,471 21,724,325 21,606,772 21,487,796 21,367,385 21,245,524 21,122,198 20,997,392 20,871,092 20,743,283 20,318,518 EQUITY Retained Earnings -2,032,560 -1,668,864 -1,303,975 -949,728 -1,357,884 -1,764,403 -2,178,422 -2,585,526 -2,211,977 -1,845,484 -1,468,931 -1,634,155
Total Equity -2,032,560 -1,668,864 -1,303,975 -949,728 -1,357,884 -1,764,403 -2,178,422 -2,585,526 -2,211,977 -1,845,484 -1,468,931 -1,634,155 Total Liabilities Equity 19,922,663 20,171,606 20,420,350 20,657,043 20,129,913 19,602,982 19,067,102 18,536,672 18,785,415 19,025,609 19,274,352 18,684,363
Table 5-14 Balance Sheet, 2013
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Thai-North Rubber Industry Company Balance Sheet
December 31, 2014 (Baht) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
ASSETS Current Assets Cash 1,505,956 1,830,803 2,155,450 2,561,484 2,641,841 2,722,397 2,794,004 2,357,152 2,261,328 2,156,955 2,061,131 1,246,373
Accounts Receivable 2,896,573 2,990,011 3,083,448 3,083,448 2,569,540 2,055,632 1,541,724 1,541,724 2,055,632 2,569,540 3,083,448 3,083,448
Total Current Assets 4,402,529 4,820,814 5,238,898 5,644,933 5,211,381 4,778,029 4,335,728 3,898,876 4,316,961 4,726,495 5,144,580 4,329,822
Non-current Assets Land 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 Operations asset 6,357,466 6,324,531 6,291,595 6,258,660 6,225,724 6,192,789 6,159,853 6,126,918 6,093,982 6,061,047 6,028,111 5,995,176 Administration asset 1,768,165 1,747,993 1,727,820 1,707,648 1,687,476 1,667,303 1,647,131 1,626,958 1,606,786 1,586,614 1,566,441 1,546,269
Total non-current assets 14,575,632 14,522,524 14,469,416 14,416,308 14,363,200 14,310,092 14,256,984 14,203,876 14,150,768 14,097,660 14,044,553 13,991,445
Total Assets 18,978,161 19,343,337 19,708,314 20,061,240 19,574,581 19,088,121 18,592,712 18,102,753 18,467,729 18,824,156 19,189,132 18,321,266 LIABILITIES Long Term Liabilities Long Term Debt 20,163,026 20,005,979 19,847,361 19,687,157 19,525,352 19,361,928 19,196,870 19,030,161 18,861,785 18,691,726 18,519,966 18,346,488
Income Tax Payable 57,462 114,924 172,386 229,848 287,309 344,771 402,233 459,695 517,157 574,619 632,081 0
Total liabilities 20,220,488 20,120,903 20,019,747 19,917,005 19,812,661 19,706,699 19,599,103 19,489,856 19,378,942 19,266,345 19,152,046 18,346,488 EQUITY Retained Earnings -1,242,327 -777,565 -311,433 144,235 -238,080 -618,578 -1,006,391 -1,387,104 -911,213 -442,189 37,086 -25,222
Total Equity -1,242,327 -777,565 -311,433 144,235 -238,080 -618,578 -1,006,391 -1,387,104 -911,213 -442,189 37,086 -25,222 Total Liabilities Equity 18,978,161 19,343,337 19,708,314 20,061,240 19,574,581 19,088,121 18,592,712 18,102,753 18,467,729 18,824,156 19,189,132 18,321,266
Table 5-15 Balance Sheet, 2014
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Thai-North Rubber Industry Company Balance Sheet
December 31, 2015 (Baht)
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ASSETS Current Assets Cash 1,620,360 2,065,727 2,510,894 3,046,792 3,223,057 3,399,523 3,567,038 3,174,704 3,157,354 3,131,453 3,114,103 1,989,083
Accounts Receivable 3,186,230 3,289,012 3,391,793 3,391,793 2,826,494 2,261,196 1,695,897 1,695,897 2,261,196 2,826,494 3,391,793 3,391,793
Total Current Assets 4,806,590 5,354,739 5,902,687 6,438,586 6,049,552 5,660,718 5,262,934 4,870,601 5,418,549 5,957,948 6,505,896 5,380,876
Non-current Assets Land 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000 6,450,000
Operations asset 5,962,241 5,929,306 5,896,370 5,863,435 5,830,499 5,797,564 5,764,628 5,731,693 5,698,757 5,665,822 5,632,886 5,599,951
Administration asset 1,526,096 1,505,924 1,485,752 1,465,579 1,445,407 1,425,234 1,405,062 1,384,890 1,364,717 1,344,545 1,324,372 1,304,200 Total non-current assets 13,938,337 13,885,230 13,832,122 13,779,014 13,725,906 13,672,798 13,619,690 13,566,582 13,513,474 13,460,366 13,407,258 13,354,151
Total Assets 18,744,927 19,239,968 19,734,809 20,217,599 19,775,458 19,333,516 18,882,624 18,437,183 18,932,023 19,418,314 19,913,155 18,735,027 LIABILITIES Long Term Liabilities Long Term Debt 18,171,275 17,994,311 17,815,577 17,635,055 17,452,728 17,268,578 17,082,586 16,894,735 16,705,005 16,513,378 16,319,834 16,124,355
Income Tax Payable 94,139 188,278 282,417 376,556 470,695 564,834 658,973 753,112 847,251 941,390 1,035,530 0
Total liabilities 18,265,414 18,182,589 18,097,994 18,011,611 17,923,423 17,833,412 17,741,560 17,647,847 17,552,256 17,454,768 17,355,364 16,124,355 EQUITY Retained Earnings 479,513 1,057,379 1,636,815 2,205,988 1,852,034 1,500,104 1,141,065 789,335 1,379,767 1,963,546 2,557,791 2,610,672
Total Equity 479,513 1,057,379 1,636,815 2,205,988 1,852,034 1,500,104 1,141,065 789,335 1,379,767 1,963,546 2,557,791 2,610,672 Total Liabilities Equity 18,744,927 19,239,968 19,734,809 20,217,599 19,775,458 19,333,516 18,882,624 18,437,183 18,932,023 19,418,314 19,913,155 18,735,027
Table 5-16 Balance Sheet, 2015
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5.1.4 Cash Flow Statements
Thai-North Rubber Industry Company Cash Flow Statement
December 31, 2011 (Baht)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cash flow from operating activities
Net Income -
897,580 -
118,664 90,717 80,076 - 324,071
- 323,940
- 331,548
- 324,644 126,092 118,719 158,212 -
383,887 Adjustment to reconcile net income to net Cash provided by operating activities
Decrease (Increase) in account receivable -
598,465 -
598,465 - 733,603 - 135,137 96,527 231,664 231,664 - - 250,969 -
250,969 -
270,275 -
19,305 Increase (Decrease) in income taxes payable - - - - - - - - - - - -
Depreciation expense 57,791 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792
Net cash provided by operating activities -
1,438,254 -
659,337 - 585,094 2,730 - 169,752
- 34,484
- 42,092
- 266,852 - 67,085 -
74,458 -
54,270 -
345,401 Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash paid for interest expense 250,000 248,913 247,816 246,707 245,587 244,456 243,314 242,161 240,995 239,819 238,630 237,429
Net cash used in financing activities 250,000 248,913 247,816 246,707 245,587 244,456 243,314 242,161 240,995 239,819 238,630 237,429
Net increase (decrease) in cash -
1,188,254 -
410,424 - 337,278 249,437 75,835 209,972 201,222 - 24,692 173,910 165,360 184,360 -
107,971 Cash balance at beginning of the month 8,346,958 6,800,026 6,030,925 5,334,969 5,225,729 4,942,887 4,794,182 4,636,727 4,253,358 4,068,591 3,875,274 3,700,956
Cash balance at ended of month 7,158,704 6,389,602 5,693,647 5,584,407 5,301,564 5,152,859 4,995,404 4,612,035 4,427,268 4,233,951 4,059,633 3,592,985
Table 5-17 Cash Flow Statement, 2011
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Thai-North Rubber Industry Company Cash Flow Statement
December 31, 2012 (Baht) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash flow from operating activities Net Income 194,907 267,511 268,547 257,247 - 434,281 - 432,807 - 440,470 - 434,220 276,233 269,009 278,898 - 263,549
Adjustment to reconcile net income to net Cash provided by operating activities Decrease (Increase) in account receivable - 96,527 - 77,221 - 77,221 - 424,717 424,717 424,717 - - 424,717 - 424,717 - 424,717 -
Increase (Decrease) in income taxes payable - 6,892 - 6,892 - 6,892 - 6,892 - 6,892 - 6,892 - 6,892 - 6,892 - 6,892 - 6,892 4,416 - 82,704
Depreciation expense 57,791 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 57,792 -
Net cash provided by operating activities 149,279 241,189 242,226 308,147 41,336 42,810 35,148 - 383,320 - 97,585 - 104,809 - 83,611 - 346,254
Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash paid for interest expense 236,217 234,992 233,756 232,506 231,245 229,970 228,683 227,383 226,070 224,744 223,405 222,052
Net cash used in financing activities 236,217 234,992 233,756 232,506 231,245 229,970 228,683 227,383 226,070 224,744 223,405 222,052
Net increase (decrease) in cash 385,496 476,182 475,982 540,653 272,581 272,781 263,831 - 155,937 128,486 119,936 139,794 - 124,201
Cash balance at beginning of the month 3,234,307 3,261,126 3,378,631 3,495,935 3,677,911 3,591,814 3,505,917 3,411,071 2,896,457 2,666,265 2,427,523 2,197,331
Cash balance at ended of month 3,619,804 3,737,308 3,854,612 4,036,588 3,950,491 3,864,595 3,769,748 3,255,134 3,024,942 2,786,200 2,567,317 2,073,130
Table 5-18 Cash Flow Statement, 2012
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Thai-North Rubber Industry Company Cash Flow Statement
December 31, 2013 (Baht)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash flow from operating activities Net Income 290,936 363,695 364,889 354,247 - 408,155 - 406,519 - 414,019 - 407,104 373,549 366,493 376,552 - 165,223
Adjustment to reconcile net income to net Cash provided by operating activities Decrease (Increase) in account receivable - 84,943 - 84,943 - 84,943 - 467,189 467,189 467,189 - - 467,189 - 467,189 - 467,189 -
Increase (Decrease) in income taxes payable 24,619 24,619 24,619 24,619 24,619 24,619 24,619 24,619 24,619 24,619 44,836 295,432
Depreciation expense 53,107 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108
Net cash provided by operating activities 283,719 356,479 357,673 431,974 136,761 138,397 130,897 - 329,377 - 15,913 - 22,969 7,307 183,317
Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash paid for interest expense 220,686 219,306 217,912 216,505 215,083 213,647 212,197 210,732 209,252 207,758 206,249 204,725
Net cash used in financing activities 220,686 219,306 217,912 216,505 215,083 213,647 212,197 210,732 209,252 207,758 206,249 204,725
Net increase (decrease) in cash 504,405 575,785 575,585 648,479 351,844 352,044 343,094 - 118,645 193,339 184,789 213,556 388,041
Cash balance at beginning of the month 1,930,761 2,076,489 2,293,597 2,510,505 2,800,306 2,793,473 2,786,840 2,771,256 2,293,934 2,128,596 1,954,708 1,789,370
Cash balance at ended of month 2,435,167 2,652,274 2,869,182 3,158,984 3,152,150 3,145,517 3,129,934 2,652,611 2,487,274 2,313,386 2,168,264 2,177,412
Table 5-19 Cash Flow Statement, 2013
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Thai-North Rubber Industry Company Cash Flow Statement
December 31, 2014 (Baht)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash flow from operating activities Net Income 391,828 464,762 466,132 455,668 - 382,316 - 380,498 - 387,813 - 380,713 475,890 469,024 479,275 - 62,308
Adjustment to reconcile net income to net Cash provided by operating activities Decrease (Increase) in account receivable - 93,438 - 93,438 - 93,438 - 513,908 513,908 513,908 - - 513,908 - 513,908 - 513,908 -
Increase (Decrease) in income taxes payable 57,462 57,462 57,462 57,462 57,462 57,462 57,462 57,462 57,462 57,462 87,759 689,543
Depreciation expense 53,107 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108
Net cash provided by operating activities 408,959 481,894 483,264 566,238 242,162 243,980 236,665 - 270,143 72,552 65,686 106,234 680,343
Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash paid for interest expense 203,185 201,630 200,060 198,474 196,872 195,254 193,619 191,969 190,302 188,618 186,917 185,200
Net cash used in financing activities 203,185 201,630 200,060 198,474 196,872 195,254 193,619 191,969 190,302 188,618 186,917 185,200
Net increase (decrease) in cash 612,144 683,524 683,324 764,712 439,034 439,234 430,284 - 78,174 262,854 254,304 293,151 865,543
Cash balance at beginning of the month 1,252,490 1,505,956 1,830,803 2,155,450 2,561,484 2,641,841 2,722,397 2,794,004 2,357,152 2,261,328 2,156,955 2,061,131
Cash balance at ended of month 1,864,634 2,189,480 2,514,127 2,920,162 3,000,518 3,081,075 3,152,681 2,715,829 2,620,006 2,515,632 2,450,106 2,926,674
Table 5-20 Cash Flow Statement, 2014
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5.1.5 Loan
Thai-North Rubber Industry Company Cash Flow Statement
December 31, 2015 (Baht)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash flow from operating activities
Net Income 504,735 577,866 579,436 569,173 - 353,954
- 351,931
- 359,039
- 351,729 590,432 583,779 594,245 52,881
Adjustment to reconcile net income to net Cash provided by operating activities
Decrease (Increase) in account receivable -
102,782 -
102,782 -
102,782 - 565,299 565,299 565,299 - - 565,299
- 565,299
- 565,299 -
Increase (Decrease) in income taxes payable 94,139 94,139 94,139 94,139 94,139 94,139 94,139 94,139 94,139 94,139 135,795 1,129,669
Depreciation expense 53,107 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108 53,108
Net cash provided by operating activities 549,199 622,331 623,901 716,420 358,592 360,615 353,507 - 204,482 172,380 165,727 217,849 1,235,657
Cash flows from investing activities Net cash used in investing activities Cash flows from financing activities Cash paid for interest expense 183,465 181,713 179,943 178,156 176,351 174,527 172,686 170,826 168,947 167,050 165,134 163,198
Net cash used in financing activities 183,465 181,713 179,943 178,156 176,351 174,527 172,686 170,826 168,947 167,050 165,134 163,198
Net increase (decrease) in cash 732,664 804,044 803,844 894,576 534,943 535,143 526,193 - 33,656 341,327 332,777 382,983 1,398,855
Cash balance at beginning of the month 1,246,373 1,620,360 2,065,727 2,510,894 3,046,792 3,223,057 3,399,523 3,567,038 3,174,704 3,157,354 3,131,453 3,114,103
Cash balance at ended of month 1,979,037 2,424,404 2,869,571 3,405,470 3,581,735 3,758,200 3,925,715 3,533,381 3,516,031 3,490,131 3,514,436 4,512,958
Loan Principal Amount 25,000,000
Annual Interest Rate Year 12.00%
Now MlR =7.75 % Loan Period in Years 10
Monthly Payments 358,677.37
Table 5-21 Cash Flow Statement, 2015
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5.1.6 Total Sale
Sale, 2011 Beginning JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Cash 8,333,198 2,482,523 2,482,523 3,043,093 3,043,093 2,082,116 2,082,116 2,082,116 2,082,116 3,123,175 3,123,175 3,203,256 3,203,256 Accounts Receivable - 1,063,939 1,063,939 1,304,183 1,304,183 892,336 892,336 892,336 892,336 1,338,503 1,338,503 1,372,824 1,372,824 Total Sale 8,333,198 3,546,462 3,546,462 4,347,276 4,347,276 2,974,452 2,974,452 2,974,452 2,974,452 4,461,678 4,461,678 4,576,080 4,576,080
Sale, 2012 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Cash 3,523,582
3,523,582
3,523,582
3,523,582
1,761,791
1,761,791
1,761,791
1,761,791
3,523,582
3,523,582
3,523,582
3,523,582
Accounts Receivable 1,510,106 1,510,106 1,510,106 1,510,106 755,053 755,053 755,053 755,053 1,510,106 1,510,106 1,510,106 1,510,106
Total Sale 5,033,688 5,033,688 5,033,688 5,033,688 2,516,844 2,516,844 2,516,844 2,516,844 5,033,688 5,033,688 5,033,688 5,033,688
Sale, 2013 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Cash 3,875,940 3,875,940 3,875,940 3,875,940 1,937,970 1,937,970 1,937,970 1,937,970 3,875,940 3,875,940 3,875,940 3,875,940 Accounts
Receivable 1,661,117 1,661,117 1,661,117 1,661,117 830,559 830,559 830,559 830,559 1,661,117 1,661,117 1,661,117 1,661,117 Total Sale 5,537,057 5,537,057 5,537,057 5,537,057 2,768,528 2,768,528 2,768,528 2,768,528 5,537,057 5,537,057 5,537,057 5,537,057
Sale, 2014 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Cash 4,263,534 4,263,534 4,263,534 4,263,534 2,131,767 2,131,767 2,131,767 2,131,767 4,263,534 4,263,534 4,263,534 4,263,534 Accounts
Receivable 1,827,229 1,827,229 1,827,229 1,827,229 913,614 913,614 913,614 913,614 1,827,229 1,827,229 1,827,229 1,827,229 Total Sale 6,090,762 6,090,762 6,090,762 6,090,762 3,045,381 3,045,381 3,045,381 3,045,381 6,090,762 6,090,762 6,090,762 6,090,762
Sale, 2015 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Cash 4,689,887 4,689,887 4,689,887 4,689,887 2,344,944 2,344,944 2,344,944 2,344,944 4,689,887 4,689,887 4,689,887 4,689,887 Accounts
Receivable 2,009,952 2,009,952 2,009,952 2,009,952 1,004,976 1,004,976 1,004,976 1,004,976 2,009,952 2,009,952 2,009,952 2,009,952 Total Sale 6,699,839 6,699,839 6,699,839 6,699,839 3,349,919 3,349,919 3,349,919 3,349,919 6,699,839 6,699,839 6,699,839 6,699,839
Table 5-22 Total Sale of 5 years
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.3.1 NPV (net present value)
5.2.1 NPV
Net Present Value (NPV) is a way of comparing the value of money now with the
value of money in the future. A dollar today is worth more than a dollar in the future, because
inflation erodes the buying power of the future money, while money available today can be
invested and grow.
NPV = 128,275,797
NPV > 0
This project we can accept.
Advantages and Disadvantages of the NPV Method:
Advantages
Consistent with shareholder wealth maximization: Added net present values generated by investments are represented in higher stock prices.
Consider both magnitude and timing of cash flows Indicates whether a proposed project will yield the investor’s required rate of return
Disadvantage
Many people find it difficult to work with a dollar return rather than a percentage return
(Source: http://www.investopedia.com/study-guide/cfa-exam/level-1/corporate-finance/cfa13.asp)
5.2.2 IRR
Internal rate of return (IRR) is a rate of return on an investment. The IRR of a project
is the discount rate that will give it a net present value of zero.
IRR = 2
2 > 0.12
This project can be accept
Investment Criteria 5.2
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Advantages and Disadvantages of IRR
Advantages
People feel more comfortable with IRR Considers both the magnitude and the timing of cash flows
Disadvantage
Multiple internal rates of return with unconventional cash flows any change in sign (+,-) in period cash flows produces as many IRR’s as there are changes in the cash flow directions of the investment.
Lending or borrowing. The IRR does not distinguish between a lending (investing) or a borrowing (borrow and invest) situation, whereas the NPV clearly points out the negative aspects of the borrowing strategy
(Source: http://www.investopedia.com/study-guide/cfa-exam/level-1/corporate-finance/cfa13.asp)
5.2.3 Payback period
The payback period is both conceptually simple and easy to calculate. It is also a seriously flawed method of evaluating investments.
PB = 0.69 year
Advantages
Measure of risk and liquidity Useful for evaluating small projects
Disadvantages
Ignores the time value of money Ignores cash flows after the payback period Objective not consistent with shareholder wealth maximization
(Source: http://faculty.kfupm.edu.sa/FINEC/mfaraj/fin301/notes/Ch7.pdf)
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5.2.4 Break-event point
Break-even point Price per Unit
Sales price RSS 142.00
Sales price STR 138.00
Low Cost 75
High Cost 80
Low Profits RSS 67.00
Low Profits STR 63.00
High Profits RSS 62.00
High Profits STR 58.00
Low Break-event point RSS 1.12
Low Break-event point STR 1.19
High Break-event point RSS 1.29
High Break-event point STR 1.38
Table 5-30 Breakeven Point
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Chapter 6
Risk Management
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Risks within the Thai North Rubber company, we can control but how risk can happen?, most
of the risk occurs within the company.
The company has the Operating Risk, Integrity Risk, and Technology Risk. Our
company operates by separate following characteristics of the risk.
There are
Human Resources
Product Development
Efficiency
Capacity
Product / Service Failure
Health and Safety
Manufacturing Equipment Modernization
Development of New Produces
Changing in Business Practices
The risks are often internal on the company such as
6.1.1 Human resource
Risks occur at any time. If we look at those matters, we will be able to
manage it. All problems can be solved, it also therefore the Thai North Rubber
company have the human resource management to more value in the organization.
For achieve the company's business. It must be developed and improved over time.
For this reason the company has difference the department. In terms of personal
selection employee, in this section we cannot know that how employees come to work
such as Person Competency, knowledge and education, talent. Experience in working
or through training before working. The company can solve immediate problems
correctly. This is the most important of the reason. So when we select the personal to
working we cannot predict what is happening or will happen with each employee. So
the companies will be able to solve these risks is encouragement of the staff. The
Risk Management
Internal Analysis 6.1
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company's welfare when they get these things. He will be expressed in terms of
working in a better way. The last can make a job well. And get maximum satisfaction
to the company, and the employees themselves. Each the positions are different
mutual benefit.
6.1.2 The limits of the employee
All employees in the company would have limited the ability in the internal
environment. Which may have Knowledge and ability to work according to plan or goal to
the company successfully but to the various activities will be faced with the changes always
on time? Under changing conditions changes to the new environment may be violent that
exceeds the capabilities of the executives .It would risk performing their duties. That will lead
to failure at any time in the practice these jobs. Therefore the executives should be interested
in some details of the employees is important.
6.1.3 Changing operating environment.
Conditions of operation of the company to success or failure depend on the
environment on economy, society and politics, which have to changing on always time. Risk
management organization that will certainly have to face another variation is to change the
economic, social and political environment that may lead to failure as well.
6.1.4 Health and Safety
The company operates for confidence to good health. Good the Weather and
pollution, including medical employees, a training seminar, use of equipment to secure the
places. Therefore, the company has been certified safe. Build the confidence to the employee
and customers. Along with maintaining equipment and care the equipment and related safety
equipment for such as all of employees will receive health care, and has been helping.
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6.2.1 Political Factor
According to the form of politics has the potential to become important to the general
business environment and domestic political institutions and political changes frequently and
security instability that often cause no rules changes and most changes are often affected lack
a stable image of politics in the support and plug pressure policy of government to channel
the business sustainable. For example, in the last 20 years, Thailand has changed the Prime
Minister from the political party differences and how they are the party in the country at
different so business in Thailand will need to review and analyze that thing happened and
what will follow in the policies that affect both direct and indirect business organizations and
their very often.
Generation to make trade operators will also need to study and attention to factors that
regulates international trade agreements such as to make free international trade and
agreements are often the leading economic countries than any other segment. Sometime a
majority interest may be vested in the company's operators are foreigners (Host Country
Enterprises) more than the business operators who area (Home Country Enterprises).
(Source: http://www.arip.co.th/businessnews.php?id=409693)
6.2.2 Economic Factor
6.2.2.1 Economic growth
THAILAND GDP GROWTH RATE
The Gross Domestic Product (GDP) in Thailand contracted 0.20 percent in the third quarter
of 2010 over the previous quarter. From 1993 until 2010, Thailand's average quarterly GDP
Growth was 0.97 percent reaching an historical high of 7.10 percent in September of 1993
and a record low of -5.10 percent in March of 1998. The economy of Thailand is an emerging
economy which is heavily export-dependent, with exports accounting for more than two
thirds of gross domestic product (GDP). Well-developed infrastructure, a free-enterprise
economy, and generally pro-investment policies, made Thailand one of East Asia's best
External Analysis 6.2
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performers. However, overall economic growth has fallen sharply in 2008 and 2009 as global
downturn and persistent political crisis stalled infrastructure mega-projects, eroded investor
and consumer confidence. This page includes: Thailand GDP Growth Rate chart, historical
data and news.
Country Interest Rate Growth Rate Inflation Rate Jobless Rate Current Account Exchange Rate
Thailand 2.25% -0.20% 2.80% 1.20% 2909 31.0300
(Source: Gross Domestic Product: Q2/2010, published August 23, 2010, Office of National Economic and Social Development Board)
Gross domestic product at current market prices valued at 2,494.4 billion baht in
2Q2010. After deducting 153.3 billion baht of net factor income from the rest of the world,
the gross national product (GNP) registered at the value of 2,341.1 billion baht, rising at the
rate of 6.8% in real terms. Balance of trade and services at current market prices registered a
surplus with the value of 158.7 billion baht. After incorporated net factor income and net
Exhibit 6-1 GDP Grow Rate
Figure 6-1 QGDP Grow Chart
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current transfer from the rest of the world, current accounts showed a surplus with the value
of 42.0 billion baht.
GDP implicit price deflator in 2Q2010 increased by 3.8% compared to 4.5% in
previous quarter. Meanwhile, producer price index and consumer price index increased by
9.3% and 3.3% compared to 12.0% and 3.8% in previous quarter, respectively.
Economic growth is the increase in value of the goods and services produced by an
economy. It is conventionally measured as the percent rate of increase in real gross domestic
product, or GDP. Growth is usually calculated in real terms, i.e. inflation-adjusted terms, in
order to net out the effect of inflation on the price of the goods and services produced. In
economics, "economic growth" or "economic growth theory" typically refers to growth of
potential output, i.e., production at "full employment," which is caused by growth in
aggregate demand or observed output. As economic growth is measured as the annual percent
change of National Income it has all the advantages and drawbacks of that level variable. But
people tend to attach a particular value to the annual percentage change, perhaps since it tells
them what happens to their pay check.
The real GDP per capita of an economy is often used as an indicator of the average standard
of living of individuals in that country, and economic growth is therefore often seen as
indicating an increase in the average standard of living. However, there are some problems in
using growth in GDP per capita to measure general well being.GDP per capita does not
provide any information relevant to the distribution of income in a country. GDP per capita
does not take into account negative externalities from pollution consequent to economic
growth. Thus, the amount of growth may be overstated once we take pollution into account.
GDP per capita does not take into account positive externalities that may result from services
such as education and health. GDP per capita excludes the value of all the activities that take
place outside of the market place (such as cost-free leisure activities like hiking).
Economists are well aware of these deficiencies in GDP, thus, it should always be viewed
merely as an indicator and not an absolute scale. Economists have developed mathematical
tools to measure inequality, such as the Gini Coefficient. There are also alternate ways of
measurement that consider the negative externalities that may result from pollution and
resource depletion (see Green Gross Domestic Product.)The flaws of GDP may be important
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when studying public policy; however, for the purposes of economic growth in the long run it
tends to be a very good indicator. There is no other indicator in economics which is as
universal or as widely accepted as the GDP, follow Economic growth is exponential, where
the exponent is determined by the PPP annual GDP growth rate. Thus, the differences in the
annual growth from country A to country B will multiply up over the years. For example, a
growth rate of 5% seems similar to 3%, but over two decades, the first economy would have
grown by 165%, the second only by 80%
A Factor of stable economic environment and impact on business opportunities and
threats that include economic stability inflation interest rates of tax rates, income distribution,
and total revenue per household. Growth of the industry is important currency exchange rates
between countries. Growth of the population labor market and unemployment rate. Policy
changes and economic problems government policy to create economic stability (Including
the policy to support export and import goods from foreign countries, respectively) and that
the majority of attention is products in the initial (Gross Domestic Product, GDP) because
GDP is a factor that led to economic growth is and what impact the power consumption
(Purchasing Power) of the population as a whole in any direction
Entrepreneurs must understand that before the economic environment has the
potential to be both positive and negative to which the company will success of failure of
strategy of the company as well or used as a key business opportunities or obstacles.
(Source: http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=THB)
6.2.3 Technological Factor
Technology Risk
Technology permeates the operations of an entire institution and therefore technology
risk cannot be compartmentalized as a process that focuses on a particular area. Technology
enables key processes that a company uses to develop, deliver, and manage its products,
services, and support operations. Understanding the role that technology plays in enabling
core business operations establishes the framework for understanding where relevant
technology risks lie.
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By understanding the role that technology plays in supporting various business
functions, company management is in a better position to determine the relative importance
of these functions and prioritize the systems, applications, and data involved. Technology
risks are present throughout the company and must be addressed as a whole.
Identifying vulnerabilities and threats provides company management with a view of
the risks faced by the company given the enabling role of information technology. Once these
risks have been identified, an appropriate technology risk management strategy can be
developed and implemented.
(Source: http://www.allaboutrisk.com/technology_risk/index.asp)
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Chapter 7
Conclusion
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Thai-North Rubber Industry is the rubber processing project that operates in
Chiangrai province, Chiangkhong district. Our project business is a factory of rubber which
has many types for sale, respond the higher demand in Chinese market. The North of
Thailand is possible for this project to make a higher profit in rubber industry.
We found with many information can be support for market feasibility of this project
like which the higher number of rubber export in Thailand, increasing in demand of rubber in
China and growth rate of rubber plant in Chiangrai each year. Thai-North Rubber also has
policy to production with higher quality and tries to develop standard and quality of basic
processing rubber to meet the demand as much. We also provide with only Rubber Smoked
Sheet and Block rubber product, mainly in higher class of rubber which are RSS1 (Extra light
color), RSS1, RSS2, STR XL, STR 5L, STR 5 and STR 5CV**. We focus our product
directly to only one main target with China (Specialization Market). And the sale forecast
feasibility of the potential market, Thai-North Rubber Industry can generate sale 0.45% of
4% of North export in Thailand and increase 10% every year.
Thai-North Rubber Industry is register as the company limited according to the
Department of Business Development. We buy the land and need to build our building, there
are 2 mainly zone which are administration zone and one for Manufacturing zone for
production in all of 2 products, are relate together. We find out the source of funding from the
investor 25,000,000 baht that we will offer the interest rate about 12% per year and will pay
all of the interest rate at the end of year 5 that we guarantee the all of principal of the investor
by we have the backup plan for the investor In the financial analysis that represent in 3
financial statement, Thai-North Rubber Industry have strong in the financial status that also
represent in the ratio analysis.
Thai-North Rubber has a strong in the financial status that also represent in the ratio
analysis, although we have the many risk which is the economical risk, political risk,
operating risk and etc., it can be acceptable because we also cope with this risk from using
the risk management.
Conclusion
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Appendix
Year Month Balance Payment Principal Interest Cumulative Cumulative
Principal Interest 1 1 25,000,000 358,677 108,677 250,000 108,677 250,000 2 24,891,323 358,677 109,764 248,913 218,442 498,913 3 24,781,558 358,677 110,862 247,816 329,303 746,729 4 24,670,697 358,677 111,970 246,707 441,274 993,436 5 24,558,726 358,677 113,090 245,587 554,364 1,239,023 6 24,445,636 358,677 114,221 244,456 668,585 1,483,479 7 24,331,415 358,677 115,363 243,314 783,948 1,726,794 8 24,216,052 358,677 116,517 242,161 900,465 1,968,954 9 24,099,535 358,677 117,682 240,995 1,018,147 2,209,949 10 23,981,853 358,677 118,859 239,819 1,137,006 2,449,768 11 23,862,994 358,677 120,047 238,630 1,257,053 2,688,398 12 23,742,947 358,677 121,248 237,429 1,378,301 2,925,827 2 13 23,621,699 358,677 122,460 236,217 1,500,761 3,162,044 14 23,499,239 358,677 123,685 234,992 1,624,446 3,397,037 15 23,375,554 358,677 124,922 233,756 1,749,368 3,630,792 16 23,250,632 358,677 126,171 232,506 1,875,539 3,863,299 17 23,124,461 358,677 127,433 231,245 2,002,972 4,094,543 18 22,997,028 358,677 128,707 229,970 2,131,679 4,324,513 19 22,868,321 358,677 129,994 228,683 2,261,673 4,553,197 20 22,738,327 358,677 131,294 227,383 2,392,967 4,780,580 21 22,607,033 358,677 132,607 226,070 2,525,575 5,006,650 22 22,474,425 358,677 133,933 224,744 2,659,508 5,231,395 23 22,340,492 358,677 135,272 223,405 2,794,780 5,454,799 24 22,205,220 358,677 136,625 222,052 2,931,405 5,676,852 3 25 22,068,595 358,677 137,991 220,686 3,069,397 5,897,538 26 21,930,603 358,677 139,371 219,306 3,208,768 6,116,844 27 21,791,232 358,677 140,765 217,912 3,349,533 6,334,756 28 21,650,467 358,677 142,173 216,505 3,491,706 6,551,261 29 21,508,294 358,677 143,594 215,083 3,635,300 6,766,344 30 21,364,700 358,677 145,030 213,647 3,780,331 6,979,991 31 21,219,669 358,677 146,481 212,197 3,926,811 7,192,187 32 21,073,189 358,677 147,945 210,732 4,074,757 7,402,919 33 20,925,243 358,677 149,425 209,252 4,224,182 7,612,172
34 20,775,818 358,677 150,919 207,758 4,375,101 7,819,930
35 20,624,899 358,677 152,428 206,249 4,527,529 8,026,179
Table Loan Repayment
Year Month Balance Payment Principal Interest Cumulative Cumulative Principal Interest
36 20,472,471 358,677 153,953 204,725 4,681,482 8,230,903 4 37 20,318,518 358,677 155,492 203,185 4,836,974 8,434,089 38 20,163,026 358,677 157,047 201,630 4,994,021 8,635,719 39 20,005,979 358,677 158,618 200,060 5,152,639 8,835,779 40 19,847,361 358,677 160,204 198,474 5,312,843 9,034,252 41 19,687,157 358,677 161,806 196,872 5,474,648 9,231,124 42 19,525,352 358,677 163,424 195,254 5,638,072 9,426,377 43 19,361,928 358,677 165,058 193,619 5,803,130 9,619,997 44 19,196,870 358,677 166,709 191,969 5,969,839 9,811,965 45 19,030,161 358,677 168,376 190,302 6,138,215 10,002,267 46 18,861,785 358,677 170,060 188,618 6,308,274 10,190,885 47 18,691,726 358,677 171,760 186,917 6,480,034 10,377,802 48 18,519,966 358,677 173,478 185,200 6,653,512 10,563,002 5 49 18,346,488 358,677 175,212 183,465 6,828,725 10,746,467 50 18,171,275 358,677 176,965 181,713 7,005,689 10,928,179 51 17,994,311 358,677 178,734 179,943 7,184,423 11,108,122 52 17,815,577 358,677 180,522 178,156 7,364,945 11,286,278 53 17,635,055 358,677 182,327 176,351 7,547,272 11,462,629 54 17,452,728 358,677 184,150 174,527 7,731,422 11,637,156 55 17,268,578 358,677 185,992 172,686 7,917,414 11,809,842 56 17,082,586 358,677 187,852 170,826 8,105,265 11,980,668 57 16,894,735 358,677 189,730 168,947 8,294,995 12,149,615 58 16,705,005 358,677 191,627 167,050 8,486,622 12,316,665 59 16,513,378 358,677 193,544 165,134 8,680,166 12,481,799 60 16,319,834 358,677 195,479 163,198 8,875,645 12,644,997 6 61 16,124,355 358,677 197,434 161,244 9,073,079 12,806,241 62 15,926,921 358,677 199,408 159,269 9,272,487 12,965,510 63 15,727,513 358,677 201,402 157,275 9,473,889 13,122,785 64 15,526,111 358,677 203,416 155,261 9,677,305 13,278,046 65 15,322,695 358,677 205,450 153,227 9,882,756 13,431,273 66 15,117,244 358,677 207,505 151,172 10,090,261 13,582,446 67 14,909,739 358,677 209,580 149,097 10,299,841 13,731,543 68 14,700,159 358,677 211,676 147,002 10,511,517 13,878,545 69 14,488,483 358,677 213,793 144,885 10,725,309 14,023,429 70 14,274,691 358,677 215,930 142,747 10,941,240 14,166,176 71 14,058,760 358,677 218,090 140,588 11,159,329 14,306,764 72 13,840,671 358,677 220,271 138,407 11,379,600 14,445,171 7 73 13,620,400 358,677 222,473 136,204 11,602,073 14,581,375 74 13,397,927 358,677 224,698 133,979 11,826,772 14,715,354 75 13,173,228 358,677 226,945 131,732 12,053,717 14,847,086 76 12,946,283 358,677 229,215 129,463 12,282,931 14,976,549
77 12,717,069 358,677 231,507 127,171 12,514,438 15,103,720
78 12,485,562 358,677 233,822 124,856 12,748,260 15,228,575
Year Month Balance Payment Principal Interest Cumulative Cumulative Principal Interest
79 12,251,740 358,677 236,160 122,517 12,984,420 15,351,093 80 12,015,580 358,677 238,522 120,156 13,222,941 15,471,249 81 11,777,059 358,677 240,907 117,771 13,463,848 15,589,019 82 11,536,152 358,677 243,316 115,362 13,707,164 15,704,381 83 11,292,836 358,677 245,749 112,928 13,952,913 15,817,309 84 11,047,087 358,677 248,206 110,471 14,201,119 15,927,780 8 85 10,798,881 358,677 250,689 107,989 14,451,808 16,035,769 86 10,548,192 358,677 253,195 105,482 14,705,003 16,141,251 87 10,294,997 358,677 255,727 102,950 14,960,731 16,244,201 88 10,039,269 358,677 258,285 100,393 15,219,015 16,344,593 89 9,780,985 358,677 260,868 97,810 15,479,883 16,442,403 90 9,520,117 358,677 263,476 95,201 15,743,359 16,537,604 91 9,256,641 358,677 266,111 92,566 16,009,470 16,630,171 92 8,990,530 358,677 268,772 89,905 16,278,242 16,720,076 93 8,721,758 358,677 271,460 87,218 16,549,702 16,807,294 94 8,450,298 358,677 274,174 84,503 16,823,876 16,891,797 95 8,176,124 358,677 276,916 81,761 17,100,792 16,973,558 96 7,899,208 358,677 279,685 78,992 17,380,478 17,052,550 9 97 7,619,522 358,677 282,482 76,195 17,662,960 17,128,745 98 7,337,040 358,677 285,307 73,370 17,948,267 17,202,116 99 7,051,733 358,677 288,160 70,517 18,236,427 17,272,633 100 6,763,573 358,677 291,042 67,636 18,527,469 17,340,269 101 6,472,531 358,677 293,952 64,725 18,821,421 17,404,994 102 6,178,579 358,677 296,892 61,786 19,118,312 17,466,780 103 5,881,688 358,677 299,860 58,817 19,418,173 17,525,597 104 5,581,827 358,677 302,859 55,818 19,721,032 17,581,415 105 5,278,968 358,677 305,888 52,790 20,026,919 17,634,205 106 4,973,081 358,677 308,947 49,731 20,335,866 17,683,935 107 4,664,134 358,677 312,036 46,641 20,647,902 17,730,577 108 4,352,098 358,677 315,156 43,521 20,963,058 17,774,098
10 109 4,036,942 358,677 318,308 40,369 21,281,366 17,814,467 110 3,718,634 358,677 321,491 37,186 21,602,857 17,851,653 111 3,397,143 358,677 324,706 33,971 21,927,563 17,885,625 112 3,072,437 358,677 327,953 30,724 22,255,516 17,916,349 113 2,744,484 358,677 331,233 27,445 22,586,749 17,943,794 114 2,413,251 358,677 334,545 24,133 22,921,294 17,967,927 115 2,078,706 358,677 337,890 20,787 23,259,184 17,988,714 116 1,740,816 358,677 341,269 17,408 23,600,453 18,006,122 117 1,399,547 358,677 344,682 13,995 23,945,135 18,020,117 118 1,054,865 358,677 348,129 10,549 24,293,264 18,030,666 119 706,736 358,677 351,610 7,067 24,644,874 18,037,733 120 355,126 358,677 355,126 3,551 25,000,000 18,041,285
Loan Rates Commercial Banks as of 17 January 2011
Bank MOR MLR MRR Ceiling Default Credit Card
Commercial Banks registered in Thailand
Bangkok Bank 6.6250 6.3750 7.0000 11.5000 15.0000 20.0000
Krung Thai Bank 6.6250 6.3750 7.1000 14.1000 18.0000 -
Kasikornbank 6.6300 6.3700 7.0500 22.0500 24.0500 20.0000
The Siam Commercial Bank 6.6250 6.3750 7.0000 19.0000 22.0000 20.0000
Bank of Ayudhya 6.8750 6.5000 6.9950 21.0000 28.0000 -
TMB Bank 7.0000 6.7500 7.3750 28.0000 28.0000 20.0000
The Siam City Bank 7.0000 6.5000 7.0000 25.0000 28.0000 20.0000
United Overseas Bank (Thai) Company Ltd. 7.4800 6.9800 7.7300 28.0000 28.0000 20.0000
CIMB THAI Bank 7.0000 6.7500 7.3750 28.0000 28.0000 -
Standard Chartered Bank (Thai) 8.5000 8.2500 11.0000 28.0000 28.0000 20.0000
Thanachart Bank 7.0000 6.5000 8.3750 15.8750 18.0000 15.0000
TISCO Bank 6.7500 6.5000 7.0000 28.0000 28.0000 -
Mega International Commercial Bank 8.2500 7.0000 7.5000 12.0000 15.0000 -
Kiatnakin Bank 6.9000 6.6200 7.1500 28.0000 28.0000 -
Land and Houses Retail Bank 7.1250 6.5000 7.3750 18.0000 21.0000 -
Industrial and Commercial Bank of China (Thai) 7.2500 7.0000 7.5000 21.0000 21.0000 -
The Thai Credit Retail Bank 8.1500 7.9000 8.4000 35.0000 35.0000 -
Average of Commercial Banks registered in Thailand 7.1638 6.7791 7.5838 22.5015 24.2971 19.3750
Daily interest rate of commercial banks
Information as of 12.00 p.m.
* Since July 1, 2005 Exclude Interest rates of Personal Loan under Supervision
" - " means no service for this type of transaction.
MLR=Minimum loan rate, MOR =Minimum over draft rate, MRR=Minimum retail rate
(Source: http://www.bot.or.th/english/statistics/financialmarkets/interestrate/_layouts/application/interest_rate/IN_Rate.aspx#)
Bank MOR MLR MRR Ceiling Default Credit Card
Foreign Bank Branches
The Bank of Tokyo-Mitsubishi UFJ 10.7500 6.7500 11.0000 25.0000 25.0000 -
Citibank - 7.2500 - 20.9900 45.6300 20.0000
Sumitomo Mitsui Banking Corporation 9.8750 6.3750 7.8750 14.7500 15.0000 -
HSBC 8.2500 8.2500 8.2500 21.0000 32.2500 19.0000 - 20.0000
Deutsche Bank AG. 8.2500 8.2500 - 20.0000 22.0000 -
JP Morgan Chase Bank 7.0000 7.0000 - 14.0000 14.0000 -
Credit Agricole Corporate and Investment Bank 8.0000 8.0000 8.7500 13.0000 13.2500 -
Bank of America, National Association 8.0000 7.5000 10.5000 13.5000 22.0000 -
Indian Overseas Bank 7.7500 7.5000 8.0000 13.2500 15.0000 -
The Royal Bank of Scotland N.V. 8.5000 8.2500 - 25.0000 25.0000 -
RHB Bank Berhad 9.2500 9.0000 9.2500 20.0000 20.0000 -
Oversea Chinese Banking Corporation 7.5000 7.5000 - 15.0000 25.0000 -
The Bank of China 8.2500 6.7500 7.5000 11.7500 14.0000 -
Mizuho Corporate Bank, Ltd. 10.7500 6.7500 7.7500 50.0000 50.0000 -
BNP Paribas 8.0000 8.0000 - 8.0000 19.0000 -
Average of Foreign Bank Branches 8.5804 7.5417 8.7639 19.0160 23.8087 20.0000
5.1.7 Source of Cash
Source of Cash, 2012 Description Otc- 11 Nov-11 Dec-11 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash 1,982,015 1,982,015 1,982,015 1,982,015 991,007 991,007 991,007 991,007 1,982,015 1,982,015 1,982,015 1,982,015
Account Receivable 752,908 772,213 772,213 849,435 849,435 849,435 849,435 424,717 424,717 424,717 424,717 849,435 849,435 849,435 849,435
Total cash receive 5,969,230 6,015,354 6,132,859 6,327,384 5,518,353 5,432,256 5,346,360 4,826,795 5,303,189 5,072,997 4,834,255 5,028,781
Cost 2,016,425 2,016,425 2,016,425 2,016,425 1,306,040 1,306,040 1,306,040 1,306,040 2,016,425 2,016,425 2,016,425 2,556,425
Sale 200 - 200 4,000 200 - 200 4,000 200 - 200 4,000 Administration expense 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622
Pre opening - - - - - - - - - - - -
Loan 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677
Supply Expense 13,760 - - - - - - - - - - -
Tax -
82,704 Total cash paid 2,708,104 2,636,724 2,636,924 2,649,474 1,926,539 1,926,339 1,935,289 1,930,339 2,636,924 2,645,474 2,636,924 3,098,019
Total cash 3,875,274 3,700,956 3,234,307 3,261,126 3,378,631 3,495,935 3,677,911 3,591,814 3,505,917 3,411,071 2,896,457 2,666,265 2,427,523 2,197,331 1,930,761
Source of Cash, 2011 Description Beginning Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash 8,346,958 1,396,419 1,396,419 1,711,740 1,711,740 1,171,190 1,171,190 1,171,190 1,171,190 1,756,786 1,756,786 1,801,831 1,801,831 AR - 598,465 598,465 733,603 733,603 501,939 501,939 501,939 501,939 752,908 752,908 772,213 772,213 Total cash receive 9,743,377 8,196,446 7,742,665 7,645,175 6,995,385 6,847,680 6,698,975 6,309,856 6,512,083 6,327,315 6,179,044 6,255,695
Cost 1,545,222 1,545,222 1,787,396 1,787,396 1,432,199 1,432,199 1,432,199 1,432,199 1,821,992 1,821,992 1,856,589 2,396,589 Sale - - - 3,000 - 1,000 1,000 4,000 1,200 1,000 1,200 4,500 Administration expense 324,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 Pre opening 701,650 - - - - - - - - - - - Supplies Expense 13,760 - - - - - - - - - - - Loan 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 Total cash paid 2,943,351 2,165,521 2,407,695 2,419,445 2,052,498 2,053,498 2,062,248 2,056,498 2,443,492 2,452,042 2,478,088 3,021,388 Total cash 6,800,026 6,030,925 5,334,969 5,225,729 4,942,887 4,794,182 4,636,727 4,253,358 4,068,591 3,875,274 3,700,956 3,234,307
Source of Cash, 2014
Otc 2013 Nov-13 Dec-13 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash 2,398,238 2,398,238 2,398,238 2,398,238 1,199,119 1,199,119 1,199,119 1,199,119 2,398,238 2,398,238 2,398,238 2,398,238
Accout Receiable 934,378 934,378 934,378 1,027,816 1,027,816 1,027,816 1,027,816 513,908 513,908 513,908 513,908 1,027,816 1,027,816 1,027,816 1,027,816
Total cash receive 4,585,106 4,838,572 5,163,419 5,581,504 4,788,419 4,868,776 4,949,332 4,507,031 5,269,298 5,173,474 5,069,101 5,487,185
Cost 2,387,470 2,387,470 2,387,470 2,387,470 1,526,079 1,526,079 1,526,079 1,526,079 2,387,470 2,387,470 2,387,470 2,927,470
Sale 200 0 200 3500 200 0 200 3500 200 0 200 3500
Administration expense 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 Pre opening 0 0 0 0 0 0 0 0 0 0 0 0 Supply Ex 13,760 0 0 - - - - - - - - -
lone 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677
Tax 689543
Total cash paid 3,079,149 3,007,769 3,007,969 3,020,019 2,146,579 2,146,379 2,155,329 2,149,879 3,007,969 3,016,519 3,007,969 4,240,812
Ttotal cash 1954708 1789370 1252489.717 1,505,956 1,830,803 2,155,450 2,561,484 2,641,841 2,722,397 2,794,004 2,357,152 2,261,328 2,156,955 2,061,131 1,246,373
Source of Cash, 2013 Otc -12 Nov-12 Dec-12 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash 2,180,216 2,180,216 2,180,216 2,180,216 1,090,108 1,090,108 1,090,108 1,090,108 2,180,216 2,180,216 2,180,216 2,180,216 Account Receivable 849,435 849,435 849,435 934,378 934,378 934,378 934,378 467,189 467,189 467,189 467,189 934,378 934,378 934,378 934,378
Total cash receive 4,960,412 5,106,140 5,323,248 5,625,099 4,824,793 4,817,959 4,811,326 4,328,554 4,941,339 4,776,001 4,602,114 4,903,965
Cost 2,192,244 2,192,244 2,192,244 2,192,244 1,410,820 1,410,820 1,410,820 1,410,820 2,192,244 2,192,244 2,192,244 2,732,244
Sale 200 - 200 3,500 200 - 200 3,500 200 - 200 3,500 Administration expense 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622
Pre opening - - - - - - - - - - - -
Supply Expense 13,760 - - - - - - - - - - -
Lone 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677
Tax 295,432
Total cash paid 2,883,923 2,812,543 2,812,743 2,824,793 2,031,320 2,031,120 2,040,070 2,034,620 2,812,743 2,821,293 2,812,743 3,651,475
Total cash 2,427,523 2,197,331 1,930,761 2,076,489 2,293,597 2,510,505 2,800,306 2,793,473 2,786,840 2,771,256 2,293,934 2,128,596 1,954,708 1,789,370 1,252,490
Source of Cash, 2015
Otc 2013 Nov-13 Dec-13 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cash 2,638,061 2,638,061 2,638,061 2,638,061 1,319,031 1,319,031 1,319,031 1,319,031 2,638,061 2,638,061 2,638,061 2,638,061
Account Receivable 1,027,816 1,027,816 1,027,816 1,130,598 1,130,598 1,130,598 1,130,598 565,299 565,299 565,299 565,299 1,130,598 1,130,598 1,130,598 1,130,598
Total cash receive 4,912,251 5,286,238 5,731,604 6,279,553 5,496,421 5,672,686 5,849,151 5,451,367 6,378,064 6,360,714 6,334,814 6,882,762
Cost 2,600,212 2,600,212 2,600,212 2,600,212 1,652,864 1,652,864 1,652,864 1,652,864 2,600,212 2,600,212 2,600,212 3,140,212
Sale 200 - 200 3,500 200 - 200 3,500 200 - 200 3,500 Administration Expense 319,042 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622 270,372 261,622 261,622
Pre opening - - - - - - - - - - - -
Supply Expense 13,760 - - - - - - - - - - -
Lone 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677 358,677
Tax 1,129,669
Total cash paid 3,291,891 3,220,511 3,220,711 3,232,761 2,273,363 2,273,163 2,282,113 2,276,663 3,220,711 3,229,261 3,220,711 4,893,679
Total cash 2,156,955 2,061,131 1,246,373 1,620,360 2,065,727 2,510,894 3,046,792 3,223,057 3,399,523 3,567,038 3,174,704 3,157,354 3,131,453 3,114,103 1,989,083
