STRATEGIC ALLIANCE AS A BUSINESS STRATEGY IN SETTING UP A VACCINE FACTORY (CASE STUDY OF PT BANDUNG VAKSIN SENTOSA)
With a population projected to reach 324 million by 2045, Indonesia offers a very large and growing domestic market. The high demand for vaccines is driven by a large national immunization program and increasing public awareness of the importance of vaccination. CZBP offers collaboration with PT BVS...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/87185 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | With a population projected to reach 324 million by 2045, Indonesia offers a very large and growing domestic market. The high demand for vaccines is driven by a large national immunization program and increasing public awareness of the importance of vaccination. CZBP offers collaboration with PT BVS to form a joint venture that aims to follow up on investment plans in the biopharmaceutical sector to serve the needs of new vaccines and medicines in Indonesia. This factory will focus on the downstream process (formulation, filling & packaging). To ensure the success of this project, it is essential to conduct a comprehensive financial feasibility study.
This study aims to address several key questions regarding the proposed collaboration to build a new vaccine facility. First, it evaluates whether the collaboration is economically feasible, considering financial indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PBP). Second, it identifies the most sensitive factor affecting the project's economic feasibility, including potential risks from operational costs or market fluctuations. Third, it explores the optimum financing strategy to fund the project, analyzing alternatives such as equity, domestic bank loans, strategic partnerships, and capitalintensive approaches. Finally, it examines whether the project is realistic and executable for the company, taking into account financial capacity, operational capabilities, and alignment with the company’s strategic objectives for expansion.
This project needs IDR 363,692,824,809 billion for its initial investment. After analyzing all the source of funds available, it is found out that the strategic partnership with the China company results the best NPV of IDR 2.778 trillion, IRR of 45.30%, Payback Period of 4.31 years, and Discounted Payback Period of 4.68 years. All of the source funds scenario are feasible, but there is scenario that seems impossible for the new entity.
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