Business Model Analysis and Feasibility Study of Low Glycemic Index Rice - Parboiled Rice

Abstract

Diabetes mellitus has become an epidemic in several developing countries, including Indonesia, where there has been a high increase in the number of people with diabetes. As rice is a staple food in Indonesia, its high glucose content may lead to overconsumption of glucose. Parboiled rice, as a pre-cooked rice, has a lower glycemic index. However, it is not widely produced and is not well-known. This research analyzes the business model and feasibility of parboiled rice. The study uses nine elements of the Business Model Canvas and calculates the NVP, IRR, and BEP of parboiled rice businesses to analyze the financial feasibility. The research shows that parboiled rice is a potential product to be developed, considering that Indonesia's rice market is very large. The potential consumers are not only those who suffer from diabetes mellitus but also those who want to live a healthy lifestyle. This parboiled rice business is feasible if a strong partnership is built with farmers and the government, as indicated by the NVP, IRR, BEP, and PP values, which were IDR 599.200, 1.3%, 675.000, and 1.2 years, respectively.