Economic Analysis of the Acetanilide Factory

Oct 13, 2025 by recoveryshake.com 116 views

Pre-Design of Factory Making Acetanilide from Aniline and Acetic Acid with a Production Capacity of 25,000 Tons/Year

Acetanilides are aromatic acetyl derivatives that have white crystal grains, making them a valuable compound in various industries. The production of acetanilide can be achieved through a reaction between aniline and acetic acid, which requires specific conditions to take place. This reaction typically occurs at a temperature of 150 °C and a pressure of 2.5 atm, and can reach a high reaction conversion of 99.5% within 8 hours. After the reaction process, the product is crystallized using a crystallizer tool to form acetanilide granules.

The pre-design of the acetanilide factory is planned with a production capacity of 25,000 tons per year and will operate for 330 days a year. The chosen location for the factory is situated on Jl. Yos Sudarso KM 20, Kelurahan Martubung, Medan Labuhan District, with a required land area of 18,000 m². In factory operations, 100 people are needed to manage the production process. The planned business entity for this factory is a Limited Liability Company (PT), with an organizational structure that applies a line and staff system.

Economic Analysis of the Acetanilide Factory

From an economic perspective, the acetanilide manufacturing factory shows promising results. Some key points of this economic analysis are as follows:

Investment Capital: Rp. 271,837,959,700
Production Costs per Year: Rp. 384,209,271,900
Product Selling Results per Year: Rp. 584,924,984,400
Net Profit per Year: Rp. 141,923,508,700
Profit Margin: 34.65%
Break Even Point (BEP): 25.27%
Return of Investment (ROI): 52.2%
Pay Out Time: 1.91 years
Return on Network (RON): 87.6%
Internal Rate of Return (IRR): 36.06%

The results of the analysis above indicate that the factory making acetanilides is very feasible to be established. With a commensurate investment capital, this factory is expected to provide significant benefits. The net profit obtained shows good profitability potential, coupled with a fairly high profit margin. The presence of BEP at 25.27% shows that this factory can begin to benefit after reaching relatively affordable sales. ROI of 52.2% and IRR 36.06% showed that this investment had excellent returns in a certain period of time. Payout time which only 1.91 years indicates that investors can expect their initial capital in less than two years, which is a positive indicator for the sustainability of this business.

Benefits of Establishing the Acetanilide Factory

Establishing the acetanilide factory not only contributes to meeting market needs, but also promises a proper profit for investors. The factory's production capacity of 25,000 tons per year will help to meet the growing demand for acetanilide in various industries. The factory's location on Jl. Yos Sudarso KM 20, Kelurahan Martubung, Medan Labuhan District, provides easy access to raw materials and transportation networks, making it an ideal location for the factory.

Challenges and Opportunities

While establishing the acetanilide factory presents several benefits, there are also challenges and opportunities that need to be considered. Some of the challenges include:

Competition: The acetanilide market is highly competitive, with several established players in the industry. The factory will need to differentiate itself from its competitors to gain a significant market share.
Raw Materials: The factory will need to ensure a stable supply of raw materials, including aniline and acetic acid, to maintain its production capacity.
Labor: The factory will need to recruit and train a skilled workforce to manage the production process.

On the other hand, there are also opportunities that the factory can capitalize on, including:

Growing Demand: The demand for acetanilide is growing rapidly, driven by its increasing use in various industries.
New Markets: The factory can explore new markets and customers to increase its sales and revenue.
Innovation: The factory can invest in research and development to improve its production process and develop new products.

Conclusion

In conclusion, the pre-design of the acetanilide factory with a production capacity of 25,000 tons per year is a feasible project that presents several benefits. The factory's economic analysis shows promising results, with a high net profit and a fairly high profit margin. The factory's location on Jl. Yos Sudarso KM 20, Kelurahan Martubung, Medan Labuhan District, provides easy access to raw materials and transportation networks, making it an ideal location for the factory. However, the factory will need to consider several challenges and opportunities, including competition, raw materials, labor, growing demand, new markets, and innovation.

Recommendations

Based on the analysis above, the following recommendations are made:

Establish the factory: The factory should be established with a production capacity of 25,000 tons per year.
Recruit and train labor: The factory should recruit and train a skilled workforce to manage the production process.
Ensure stable supply of raw materials: The factory should ensure a stable supply of raw materials, including aniline and acetic acid, to maintain its production capacity.
Invest in research and development: The factory should invest in research and development to improve its production process and develop new products.
Explore new markets: The factory should explore new markets and customers to increase its sales and revenue.

By following these recommendations, the acetanilide factory can achieve its production capacity of 25,000 tons per year and provide significant benefits to investors.
Frequently Asked Questions (FAQs) about the Acetanilide Factory

The acetanilide factory is a significant project that aims to meet the growing demand for acetanilide in various industries. As the project progresses, there are several questions that arise about its feasibility, benefits, and challenges. In this article, we will address some of the frequently asked questions (FAQs) about the acetanilide factory.

Q: What is the production capacity of the acetanilide factory?

A: The production capacity of the acetanilide factory is 25,000 tons per year.

Q: Where is the factory located?

A: The factory is located on Jl. Yos Sudarso KM 20, Kelurahan Martubung, Medan Labuhan District.

Q: What is the investment capital required for the factory?

A: The investment capital required for the factory is Rp. 271,837,959,700.

Q: What are the production costs per year?

A: The production costs per year are Rp. 384,209,271,900.

Q: What are the product selling results per year?

A: The product selling results per year are Rp. 584,924,984,400.

Q: What is the net profit per year?

A: The net profit per year is Rp. 141,923,508,700.

Q: What is the profit margin?

A: The profit margin is 34.65%.

Q: What is the break-even point (BEP)?

A: The break-even point (BEP) is 25.27%.

Q: What is the return on investment (ROI)?

A: The return on investment (ROI) is 52.2%.

Q: What is the pay-out time?

A: The pay-out time is 1.91 years.

Q: What is the return on network (RON)?

A: The return on network (RON) is 87.6%.

Q: What is the internal rate of return (IRR)?

A: The internal rate of return (IRR) is 36.06%.

Q: What are the challenges and opportunities of establishing the acetanilide factory?

A: The challenges of establishing the acetanilide factory include competition, raw materials, labor, and market demand. The opportunities include growing demand, new markets, and innovation.

Q: How can the factory ensure a stable supply of raw materials?

A: The factory can ensure a stable supply of raw materials by establishing relationships with reliable suppliers, diversifying its supply chain, and investing in research and development to improve its production process.

Q: How can the factory recruit and train a skilled workforce?

A: The factory can recruit and train a skilled workforce by advertising job openings, conducting interviews, and providing on-the-job training and development programs.

Q: How can the factory explore new markets and customers?

A: The factory can explore new markets and customers by conducting market research, attending trade shows and conferences, and establishing relationships with potential customers.

Q: How can the factory invest in research and development?

A: The factory can invest in research and development by allocating a portion of its budget to R&D, hiring experienced researchers and developers, and partnering with universities and research institutions.

Q: What are the benefits of establishing the acetanilide factory?

A: The benefits of establishing the acetanilide factory include meeting the growing demand for acetanilide, providing employment opportunities, and generating revenue and profits.

Q: What are the potential risks and challenges of establishing the acetanilide factory?

A: The potential risks and challenges of establishing the acetanilide factory include competition, raw materials, labor, market demand, and regulatory compliance.

Q: How can the factory mitigate the risks and challenges?

A: The factory can mitigate the risks and challenges by conducting thorough market research, establishing relationships with reliable suppliers, recruiting and training a skilled workforce, and investing in research and development.

By addressing these frequently asked questions, we hope to provide a better understanding of the acetanilide factory project and its potential benefits and challenges.