CHAPTER 1

Chapter 1
Introduction
1.1 Background and Significance of the Project Para rubber is the significant agriculture product in Thailand. It has rather high market potential as local demand and demand for export quit high. From Thailand Exporting Para rubber statistic 2009, the quantities which Thailand can export Para rubber was 2,740,089 ton and took 146,263.6 million baht for the value [The Thai Rubber Association, 2010]1. That is the reasons why Para rubber is the most important agriculture in Thailand. In addition, the demand of Para rubber can be increasing because people are more interested the new industrial drop which is Para rubber. Former Thailand has the Para rubber industry only in the south of Thailand because it is the first area where growing its Para rubber, but nowadays Para rubber can be grow in all area of Thailand especially in the north and northeast of Thailand. Anyways, there are a few businesses to support high demand of Para rubber in the new area where is north of Thailand. Para rubber factory is one that can support the production from agriculturist because it is the place where receives the products from Para rubber such as concentrate latex and air dried sheet, can process the better qualities of Para rubber such as ribbed smoked sheet (RSS), block rubber, and crepe rubber as well. In addition, the business about Para rubber in Thailand can be certainly growing in the future because the demand for exporting Para rubber of Thailand is quite high and also the people used Para rubber in daily life for example tires, medical equipments, and etc. However, Thailand has expanded the area for growing Para rubber which is the important industrial drop of Thailand to all areas. North of Thailand is the new area where government supported agriculturists to expand growing Para rubber. From the statistic, there are 600,578 rai in 2008 for growing Para rubber in the north of Thailand. [Rubber Thai, 2010]2. Also, one province where is interested for run the business for supporting the production from Para rubber is Chiangrai province because Chiangrai province is ranked in the number two of growing Para rubber in the north of Thailand (Rubber Thai, 2010)2, located in the triangle economy where border with the GMS countries, also have a few Para rubber factory due to most of agriculturist in Chiangrai cannot be harvest the production of Para rubber yet. If we have the company where receives the Para rubber production from agriculturist and also can be processes the better qualities for sale, we

can meet to the successful and gain more profit from the business in the north of Thailand as well. Thus, Siam Rubber company limited have the new point of view that there are many Para rubber companies in the north of Thailand and located the factory in Mae Jan district, Chiangrai province, for receive Para rubbers product from agriculturist who produce the Para rubber. The reasons why Siam Rubber Company limited located in Chiangrai because the agriculturists in Chiangrai are interested in Para rubber, many fields of Chiangrai is used for growing Para rubber, there have a few business for receive the production form Para rubber in Chiangrai, and also nearly to receive raw material from supplier. In the future, Siam Rubber Company limited can make more customers because we are the first Para rubber businesses where the customers can be rely in our qualities and services.
Source: [http://www.thainr.com/th/detail-stat.php?statID=47] 1 [http://www.rubberthai.com/statistic/stat_index.htm] 2

1.2 Project Objective 1. To analyze the situation of Para rubber industry in Thailand. 2. To analyze the market feasibility of Para rubber industry. 3. To analyze technical and management in Para rubber factory. 4. To analyze all of financial used in Para rubber factory. 5. To analyze risks that can effect to the Para rubber factory. 6. To study the feasibility of located Para rubber factory in Chiangrai.

1.3 Benefit of Project 1. Able to identify the opportunities to do a project. 2. Able to apply the knowledge from studying to the real situation. 3. Able to identify all of financial and risk management. 4. Able to understand the situation of Para rubber in Thailand. 5. Know how to manage and operate of choose business.

1.4 Activities / Time Frame Gantt chart and Time Frame of the study
November Week 1 Week 3 Week 4 Week 1 Activities Week 2 December Week 2 Week 3 Week 4 Week 1 January Week 2 Week 3 Week 4 Week 1 February Week 2 Week 3 Week 4

1. Topic submission 2. Introduction submission - Introduction to project feasibility study 3. Study the industry profile Product Characteristics 4. Analyze the market feasibility - Market Analysis 5. Topic presentation 6. Study technical Feasibility - Production and Operations - Process of Management 7. Analyze the financial of our business - Financial Statements Generating - Financial Statement Analysis 8. Study and manage the risk of our business - Risk Analysis and Other Analysis 9. Project Advertising - VCD/DVD Ads. 10. Writing and analyze the report 11. Presentation 12. Conclusion the feasibility of business