The Feasibility Study On The Project Of NB Traditional Chinese Pharmaceutical Co.,Ltd Capacity Expansion

Along with the development of the economy, people’s living standard improved,and the importance of "healthy life" increased. It’s turned out that plant extractsindustry developed meteoricly and rapidly, and that the quantity of the industry’sexports is rising. In order to support the development of the plant extracts industry,Chinese government has been formulated a series of policies. Among the policies,"the twelfth five-year development plan of food industry "in2011and "the twelfthfive-year development plan of the traditional Chinese medicine industry" in2012influenced most because it’s written clearly that our government will support itsdevelopment. Therefore, the industry of plant extracts met another developmentopportunity. NB Chinese Traditional Pharmaceutical Co.,Ltd.(in this paper，referredas “NB Herb”)as the largest turmeric production enterprise in domestic market hasadvantages on technology、product brand、manpower and so on, which has highvisibility and reputation at home and abroad. However, in2013, the sales revenue ofNB Herb declined. Through the detailed analysis, we found that the main reason wasthat money was tight, which led to the shortage of capacity. On the one hand, NBHerb didn’t have enough equipment for producing, on the other hand, NB Herb didn’thave enough liquid cash to support the producing. Hence, NB Herb needed financeinvestment. The article mainly analyzed the feasibility of the project of the financeinvestment, then gave a definite answer about that whether the project is feasible ornot and the related data support. I hope that the paper can give the related futureresearch a little reference.Firstly, this paper reviews the theory of the feasibility study. It mainly includedthe concept of the feasibility study、the content of the feasibility and the researchmethod of the feasibility, which laid a solid theoretical basis for the paper’s writing.Secondly, this paper simply described the NB Herb and the investment project ofcapacity expansion, which took on a simply expression about the NB Herb’sinvestment project. Then, this paper divided three parts to respectively analyze themarket、technology、and investment returns on the NB Herb’s capacity expansioninvestment project. Through the detailed analysis, it was concluded that theinvestment project was feasible on market、technology and revenue. That was to say,the project had a large market at home and abroad, and that NB Herb had the coreadvantage in technology, and that it was able to obtain more objective investment returns. Finally, this paper analyzed the potential risks of investment project. Throughthe analysis, we found that the investment project has risk，but the risk can be handled.This paper argued that in order to ensure the income of the investment project, NBHerb should continue to improve product quality and establish the industrial chain tocontinue to maintain a dominant position among the industry, and also shouldimprove the corporate governance structure, and should standardize the financialmanagement system, and should continue to expand the market, and should focus onthe expansion of the market and continue focus on the product innovation. Then itwill improve the core competitiveness of NB Herb and do a well preparation tobecome the best turmeric product manufacturers in the world.