FINANCIAL FEASIBILITY STUDY FOR ENTERING NEW MARKET : CASE STUDY OF PT. SOLARENS LEDINDO

• Main Author: Tri Juliansyah, Adi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/41397
• Institution: Institut Teknologi Bandung

PT. Solarens Ledindo for the past five years has focused its business on the sale of public solar street lighting products which are widely used to supply the needs of infrastructure development projects in Indonesia that have been intensively carried out over the past 5 years. Therefore the company becomes dependent on the existence of development projects from the government to be able to run its business. The dependency causes the company to experience high fluctuations in the revenue it can get. For this reason, an alternative market is needed for companies to enter. The big potential is the Highbay lighting products which are widely used in the industry. The challenge faced by entering this product market is the high number of Highbay lighting products from China that have lower prices than the products offered by PT. Solarens Ledindo. So the Financial Feasibility Study is needed to find out the possibility of the company to enter the Highbay product market. The methodology used in this research is to find out the business issue first, then find out the business situation of the Highbay lighting industry through internal analysis using financial ratios and external analysis using PESTEL and Five Forces. Then do the calculation of the Financial Projection and Financial Feasiblity Study of the project. After getting the results of the calculations carried out sensitivity analysis. The results can be used as recommendations to the company and make an implementation plan of the project. From the calculation results of the Financial Feasibility Study the Payback Period obtained from this project is only 3.66 years, faster than the maximum Payback Period time desired by the company that is for 10 years, the NPV obtained is positive, amounting to Rp. 364.922.185.514,87, and the IRR obtained is greater than the WACC of 8,41%, which is 26,57%. Based on the analysis using Sensitivity Analysis it is found that there are 4 variables that most influence the value of the NPV, namely Inflation Rate, Quantity Sold Realization, Price per Unit Realization and Direct Material. Based on the analysis using Monte Carlo, it is found that the probability of this project to get a positive NPV value is 94,90%. Based on the calculation above, it can be seen that this project is feasible to do, this is because the results can be better than the threshold. Management must pay attention to Inflation Rate, Quantity Sold Realization, Price per Unit Realization, and Direct Material as the most influential variable on the value of NPV. The probability of this project will produce a NPV with a positive value of 94,90%.