The Business Model and the Financial Feasibility Study of the Manufacture of Cocoa Butter Equivalent from Mango Seed Almond Fat

Abstract

This study analyzed the business model and the financial feasibility of cocoa butter equivalent derived from mango seed almond fat. The results were as follows: (1)The business model showed that industrial users, using cocoa butter as the key ingredient in the manufacture of chocolate and confectionery ,are the main customer segment. Value proposition consisted of high-end market brands, high quality and innovative products but at a low price. The channel for the customer segment was an indirect distribution channel. (2)The financial feasibility with a project life of 10 years, initial financial investment of 60 million baht and a discount rate of 10.305 % was investigated. The project came out as feasible since the net present value was 50,432,586.23 baht, the benefit cost ratio was 1.45 time, and the internal rate of return was 24.23%. Concerning risk and uncertainty, the switching value test showed that the initial cost could be increased to a maximum of 84.05 %, the operating cost could be increased to a maximum of 96.06 %, total cost could be increased to a maximum of 44.83 %, and the benefit of the project could be reduced by no more than 30.95 %.