Subject investment project appraisal topic investment project for topping nut milk shop

In the context of increasingly health-conscious consumption, the “TOPPING Nut Mik” project was created to meet this demand through a unique product that combines lotus seed milk, corn mi

SUBJECT: INVESTMENT PROJECT APPRAISAL

Topic: INVESTMENT PROJECT FOR TOPPING NUT MILK SHOP

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LOI NHAN XET CUA GIANG VIEN

Mục Lục

1 Stakeholders 11

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2 Socio — economic Analysis 13

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4.2 _ Input Norms, Unit Prices, and Quantities of Input Factors 16

4.3 Cost AnaÌySIS 2 Q22 12011211 1H11 H114 11H11 16 - 18 Technical Án ÏySÏS - c0 0 TY 0 005051 80150 09119 0 00 19

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No vo na ố SG 23 5.2.2 Machinery and Equlpmeit c2: 222 2221111251212 1 2e sxe2 24 5.3 Parameter Table and Intermediate Calculation Tables 25 5.4 _ ProJected Cash Flow ofthe ProJect 2 2 22.1122 22212 css2 26 Assessment of the Project's Debt Repayment Capability 26 6.1 _ Estimated Capital COsfs L2 20 2211221122122 101118211111 e2 26 6.2 FInancial Performance Evaluation CTIteria - -:+sc +2 s+++ 27 6.3 Discounted Payback Period - cesses 1221112211115 111g 27

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INTRODUCTION

We would like to express our sincere gratitude to our professor for the invaluable

knowledge shared with us in recent times This foundation has enabled us to undertake

this group project Although we have made every effort, due to time and knowledge

limitations, our work may still contain certain inaccuracies We greatly appreciate any

feedback from our professor to help us improve in future projects

In the context of increasingly health-conscious consumption, the “TOPPING Nut

Mik” project was created to meet this demand through a unique product that

combines lotus seed milk, corn milk, and soy milk, with toppings such as lotus seeds,

water chestnuts, and taro

The current market is primarily dominated by industrial and imported nut milk,

with a lack of products made from locally sourced Vietnamese ingredients This

presents an opportunity for “TOPPING Nut Milk” to appeal to young customers who

prefer natural and health-friendly products

The appraisal of this project plays an essential role in evaluating its feasibility and

profit potential, helping to identify risks and propose optimal solutions Through this

appraisal, it will contribute to an accurate and sustainable investment decision

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PROJECT OVERVIEW

1 Project Introduction

Project Name: TOPPING Nut Milk shop

Implementation Period: December 2024 — December 2026 (Estimated duration: 3

years)

Total Investment Capital: 1,000,000,000 VND (one billion VND), including

600,000,000 VND in equity and a 400,000,000 VND bank loan

The current market is largely focused on industrial milk or imported plant-based

milk products, with few options that combine nut milk and toppings made from

Vietnamese ingredients This creates a significant opportunity for the TOPPING Nut

Mulk project to reach customers seeking unique and innovative products

Despite competition from existing nut milk brands, the use of natural, locally

sourced Vietnamese ingredients will set the project apart, helping it to compete and

establish a distinct brand identity

3.2 Legal Compliance:

The project will adhere to all current legal regulations in Vietnam, including those

on business establishment, product registration, food safety, and environmental

protection Necessary permits will be obtained from the relevant authorities before the

product is mtroduced to the market

3.3 Scientific Basis:

The project is based on research into the nutritional benefits of different types of

nut milk, such as lotus seed milk, corn milk, and soy milk, combined with fiber and

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mineral-rich toppings like water chestnuts, lotus seeds, and taro, ensuring the product

offers high nutritional value and health benefits for consumers Production will follow

food safety standards and utilize advanced processing technology to maintain product

quality and the natural flavor of the ingredients

3.4, Feasibility

3.4.1 Input Materials

Abundant Supply: Ingredients like lotus seeds, corn, and soybeans are common and

can be readily sourced from various agricultural regions in Vietnam, particularly in

the Mekong Delta and Central Highlands This ensures a stable supply of raw

materials for production

Cost — Effective and Competitive: Since the primary materials are domestic

agricultural products, costs are likely lower than for imported goods This helps the

project control input costs and create a price advantage

Sustainability of Material Sources: Using local agricultural products supports rural

economies and contributes to sustainable development by building a stable, long-term

supply chain and ensuring quality raw materials

Easy Quality Assurance: With a variety of domestic suppliers, it is more convenient

to select materials that meet food safety and nutritional standards The project can

establish specific quality criteria for each type of ingredient and conduct regular

inspections to maintain consistent quality

3.4.2 Market

The project targets the healthy beverage and functional food market, especially

appealing to the younger demographic, aged 18-35, who tend to consume nut milk and

health-promoting drinks

It will primarily compete with existing nut milk products in the market while

leveraging consumer trends to create a unique product with traditional Vietnamese

toppings

3.4.3 Technology

Production will follow advanced technological processes to ensure high quality and

retain nutritional value

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Natural ingredients and clean processing technology will be used to preserve the

natural flavors of nut milk

3.4.4 Human Resources and Management

Initially, the management team will consist of six key members, each with roles in

production operations, marketing, finance, and human resources

There will be a plan to train and develop staff skills to meet the operational and

production requirements

3.4.5 Finance

With a total mvestment of 1 billion VND, 600 million VND (60%) will be self-

financed, while 400 million VND (40%) will be a bank loan at a fixed interest rate,

impacting cash flow and annual interest expenses

The project will calculate cash flows, including revenue, operating expenses,

interest expenses, and corporate income tax Corporate income tax will be calculated

based on pre-tax profit after deducting eligible expenses

Integrating loan costs and taxes into cash flow calculations provides an accurate

reflection of the project's profitability and financial risk while evaluating investment

efficiency through indicators like NPV (Net Present Value) and IRR (Internal Rate of

Return)

3.4.6 Socio Economic Impact

The project will not only generate profit for investors but also contribute to local

economic development by creating jobs and providing nutritious products to the

community

It aims to raise awareness about healthy lifestyles and the benefits of consuming

nutritious foods The project will not only generate profit for investors but also

contribute to local economic development by creating jobs and providing nutritious

products to the community

It aims to raise awareness about healthy lifestyles and the benefits of consuming

nutritious foods

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PROJECT APPRAISAL

1 Stakeholders

1.1 Target Customers (Buyer)

Primary Target Group: Young customers aged 18-35 with an active lifestyle and a focus on health This demographic tends to prefer natural, preservative-free, healthy beverages, especially plant-based options

Secondary Target Group: Families and older individuals interested in plant-based nutritional supplements The product also appeals to people looking to reduce their consumption of dairy or seeking healthier alternatives

1.2 Suppliers

Raw Material Supply: Partnerships with local cooperatives and agricultural suppliers for ingredients such as lotus seeds, corn, soybeans, water chestnuts, and taro These partnerships not only ensure a stable supply chain but also help control costs and quality

Machinery and Equipment Supply: Suppliers specializing in food processing equipment will provide the plant-based milk and topping production line Equipment

may be sourced from local or international manufacturers

s* Essential Equipment for the Plant-Based Milk with Topping Production Line:

Milk Filter Machine

+ Function: Filters residue after grinding seeds to produce a smooth and clear

plant-based milk

+ Budget: Approximately 40-70 million VND

Sterilization Machine

+ Function: Sterilizes plant-based milk to ensure food safety

+ Budget: Approximately 80-150 million VND

Automatic Packaging Machine

+ Function: Packages the product after production

+ Budget: Approximately 50-100 million VND

Manual Topping Preparation

+ Function: Creates a variety of toppings without requiring specialized processing

equipment, helping to reduce costs

+ Budget: Minimal investment needed; basic cooking tools (e.g., steamers, pans, bowls) estimated at around 10-20 million VND

> Total Estimated Budget for Machinery and Equipment: 230-390 million

VND

1.3 Operators

Role: Members of the investor team will be responsible for managing and operating

the project, covering production, quality management, marketing strategies, and sales Direct involvement allows investors to easily oversee project aspects and make quick decisions as needed

Production Management: Ensures the production process complies with food safety

standards and product quality Team members are also responsible for optimizing the

production process and adjusting business strategies based on market feedback 1.4 Bank

Role in Funding: The bank will provide 40% of the necessary loan for the project

This alleviates pressure on the imvestors' equity and supports smoother project

implementation

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Loan Conditions: The project will ensure it meets the financial conditions required

by the bank for obtaining the loan, including a clear and transparent repayment plan that demonstrates the project’s profitability

Additional Financial Support: The bank may offer other financial services such as

payment guarantees or working capital support as needed, enhancing the project's financial management flexibility

2 Socio — economic Analysis

2.1 Economic Impact

(1) Job Creation: The project will create new jobs in manufacturing, logistics, and R&D, boosting the local economy and supporting organic agriculture by sourcing

ingredients like soybeans and lotus seeds

(2) Brand Value: By producing nutritious, lactose-free, and low-cholesterol products, the project can build a trusted brand With quality standards and organic certification, 1t will attract health-conscious consumers and expand its market to include those seeking alternatives to animal milk, fostering brand loyalty and revenue growth

2.2 Social Analysis

(1) Promoting Healthy Lifestyles: The plant-based milk products encourage a

nutritious diet, helping consumers reduce animal product consumption while providing natural nutrients like protein, fiber, vitamins, and minerals They are ideal

for those looking to improve health and reduce the risk of obesity, diabetes, and heart diseases

(2) Environmental Protection: The production process, especially with organic ingredients, minimizes the use of chemicals and pesticides, protecting the environment from pollution This approach conserves natural resources, reduces carbon emissions, and helps preserve soil and water quality

(3) Building a Supportive Community: The project fosters a community of health- conscious consumers who share values around healthy living and environmental protection By offering products in stores and supermarkets, it creates spaces for interaction among individuals interested in nutrition and health, enhancing social support

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3 Risk Analysis

3.1 Objective Risks

(1) Supply Chain Risks: Sourcing organic ingredients for plant-based milk can be challenging due to stringent quality standards, limiting the number of high-quality suppliers This scarcity could slow production or complicate scaling up to meet increased demand, necessitating stringent quality control processes

(2) Cost Increase Risks: The production of plant-based milk requires specialized preservation and transportation methods to maintain quality, potentially leading to higher costs for equipment, technology, and processes

(3) Changing Consumer Trends: Consumer preferences can shift due to evolving dietary trends and lifestyles, impacting demand for plant-based milk and the project's sustainability Continuous market monitoring and a dedicated R&D team are essential

to adapt products accordingly Collecting customer feedback can enhance consumer

experience, while strong branding and customer relationships will help maintain loyalty and trust

3.2 Subjective Risks

(1) Quality Management Risks: Utilizing substandard or inconsistent ingredient

supplies can compromise product quality This may arise from suppliers failing to

meet standards or improper ingredient storage conditions Errors in the production process — such as temperature control, equipment sanitation, and processing time — can also degrade the quality of plant-based milk, affecting taste and nutrition Without strict quality control measures, subpar products may reach the market, leading to negative feedback and loss of customer trust

(2) Customer Perception and Psychology Risks: Consumers may hold misconceptions about plant-based milk, such as doubts about its flavor or quality consistency, which could lower demand Additionally, customers accustomed to dairy milk might face psychological barriers when transitioning to plant-based options, due

to differences in taste and nutritional profiles

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