Excel Fisheries Private Limited

Healthy Product - Healthy Trade

21 December, 2010

Riyasat Azim 082011098

Mahmuda Rahman 082011089
Ummeya Khadija 082011068
Bab-e-umme Honey 082011067
Md. Kamruzzaman 082011069
 Contents Page number
Executive Summary 2
The Company 3
Our Vision 3
3
Our Mission Business Concept

Type Of Ownership 3
Products OFFERING 3
Processing Of The Fishes 5
Customer Pain Points 8
Value Proposition 9
Organization Structure 9
Operational Plan 10
Plant Location, Building And Layout 10
Machines Use For Fish Processing 11
Marketing Plan 13
Market Analysis 13
15
Competitors

16
Marketing Strategy

16
Promotion

Distribution Channel 17
Pricing Strategy 18
Strategic Plan 18
Competitive Strategy 18
Key Success Factors 18
Future Products And Services 19
19
Risk Management

Swot Analysis 19
Financial Plan 20
Breakeven Analysis 20
Appendix 21

Page 2 of 25
 I.EXECUTIVE SUMMARY

Processed fish have been considered a widespread industry since a very long time. Frozen foods
are the second largest export sector of the economy. The massive natural resources available in
Bangladesh make this sector particularly promising for us to make invest. Export oriented fish
processing plants produce Fresh Water shell On (FWSO), Sea Water shell On (SWSO), shrimp
products under the most hygienic and sanitary condition under the supervision, control and
guidance of foreign trained handling & processing experts. At all levels, USFDA registrations
and directives of the European Communities concerning the production and exportation of frozen
foods are strictly followed.

Loose packaged fish available in local market has led to the dissatisfaction among the customers
because of its unavailability in proper packaging. This dissatisfaction provides a window of great
opportunity for hygienically processed and packed fish which satisfies the need of the customers.

Excel Fisheries Private Limited Company will make use of modern technology and will offer
hygienically packed fish. Hygienic fish with a good quality will be the USP of the company. This
property will make the company vastly superior to the currently available loose packaged fish
market.

According to the market survey consumers wont mind paying a premium if they are provided
hygienically processed and packaged fish. Excel Fisheries Pvt Limited will be marketing the
product by giving advertisements in the newspapers and commercial ads for the television.

The entrepreneurial team consists of Director Strategy, Production Manager, logistics Manager,
Marketing Manager and Quality control Manager. The team members know each other for
several years and are highly compatible.

A pilot plant would be set up in Jessor and will be functioning from June 2011 Manufacturing
will include in-house function like filleting, trimming and packaging of fishes.

The project will require funding from Venture Capitalists as well as bank.

Page 3 of 25
 II. THE COMPANY
OUR VISION:

To be one of the leaders in hygienically processed and packaged fish products supplier in
Bangladesh.

OUR MISSION:

While our vision defines our destination, our core values serve as our roadmap guiding our
actions. Driven by our vision, our mission is to build trust with customers and make us stand out
brand among others by our expertise in hygienically processed quality seafood, professional in
services and integrity in business.

BUSINESS CONCEPT

Excel Fisheries Pvt. Limited is a fish processing, exporting, packaging and trading company in
Bangladesh. Our motto is "Healthy Product - Healthy Trade". We aim to produce and supply the
finest quality frozen foods, and are constantly upgrading and implementing new processes to
ensure superior food production. Our factory and products are inspected before shipment to
ensure quality.

TYPE OF OWNERSHIP- Private ownership.

PRODUCTs OFFERING:

The products offered by Excel Fisheries Pvt. Ltd are hygienically processed and packaged fishes
which include three varieties:
1. Shrimps Items

Page 4 of 25
 I. Cultivated Black Tiger Headon Shellon
Shrimps: Packing : 1000 Gm10per Mc (80%
NW/FC) or as per customer's requirement Size per
Kg : 8/12-13/15-16/20-21/30-31/40

II. Cultivated Black Tiger Headless Shellon Shrimps:

Packing : 4LBS/1.8/1.2 KGS6 per Mc or 1 Kg poly
bag

III. Brown Headon

Shrimps:
Packing : 500 Gm semi IQF20 per
Mc or as per customer's
requiremet

IV. Fresh Water Headless Shellon Shrimps: Packing : 4

LBS BF6 per Mc or 1 Kg IQF poly bag10 per Mc
(80% NW/FC) or as per customer's requirement

2. Sea Fishes

I. Hilsha: Packing : IQF/IWP Whole gudded 20 kgs

per MC & BF/IWP/Steak 15600 gm or as per
customer's requirement

II. Yellow Crocker: Packing : Whole round semi IQF 10 kg x

2 per MC or as per customer's requirement

Page 5 of 25
 III. Ribon Fish: Packing : IQF/IWP 20
kgs per MC or as per customer's
requirement

3. Fresh Water Fishes

I. Shole: Packing : IQF/IWP Whole Gudded 20 Kgs per MC &

BF/WP/STEAK 15X600 Gm or as per customers requirement

II. Koi: Packing : Whole cleaned

scale of block frozen 300 g
x 15 per MC or as per customer's requirement

III. Rohu: Packing : IQF/IWP Whole Gudded 20 Kgs per MC & BF/WP/STEAK
15X600 Gm or as per customers requirement

IV. Ayre: Packing :

IQF/IWP Whole gudded 20 kgs
per MC & BF/IWP/Steak 15X600
gm or as per customer's requirement

V. Pangus: Packing : IQF/IWP Whole gudded 20 kgs

per MC & BF/IWP/Steak 15600 gm
or as per customer's requirement

PROCESSING OF THE FISHES:

Filleting of white fish:

Page 6 of 25
Pretreatment Pretreatment of the fish involves the removal of ice, washing, grading
according to size and de-heading. Large fish also scaled before further
processing.

Filleting The next step in the process is filleting, which is generally done by
mechanical filleting machines. The filleting department is generally
separated from the pretreatment area by a wall, to prevent workers and
goods passing from the non-sterile pretreatment area to the sterile filleting
area. The filleting machines comprise pairs of mechanically operated knives
which cut the fillets from the backbone and remove the collarbone. Some
fish fillets may also be skinned at this stage.

Trimming In the trimming department, pin bones are removed and operators inspect
the fillets, removing defects and any parts that are of inferior quality.
Offcuts are collected and minced. Depending on the final product, the fillets
may be cut into portions according to weight or divided into parts such as
loin, tail and belly flap. As a final step before packaging, the fillets are
inspected to ensure they meet product standard.

Packaging/storag Fresh products are packaged in boxes with ice, the ice being separated from
e the products by a layer of plastic. Frozen products are packed as 611 kg
blocks in waxed cartons. The blocks are typically frozen and then kept in
cold storage.

The steps involved in filleting white fish are summarized in Figure 1.

Page 7 of 25
 Filleting of oily fish

Oily fish species are characterized as those

having oils distributed throughout the fillet and in
the belly cavity around the gut. Fillets from these
species may contain up to 30% oil. Oil content
varies not only between species but also within
species. The steps involved in the filleting of oily
fish are summarized in Figure 2.

Figure 1 Process flow diagram for the filleting of white fish

Page 8 of 25
Figure 2 Process flow diagram for the filleting of oily fish (herring) Figure 2 Process flow diagram of the canning process

Canning:

Off-loading and The fish are off-loaded at the plant, weighed and loaded into water flumes.
cutting The flumes transport the fish to holding vessels, where they remain until
required for processing. Fish are flumed, as required, onto cutting tables,
where the heads, tails and other inedible parts are removed.

Skinning Some fish species, such as mackerel, need to have the skin removed by
immersion in a warm caustic bath. The effluent generated from this
process has a high organic load and has to be neutralized before being
discharged.

Page 9 of 25
 Can filling and The canning process depends on the size of the fish. Small fish species
cooking such as sardines and pilchards are generally canned whole, with only the
heads and tails removed. These whole-fish products are cooked in the can
after it has been filled with brine or oil. Medium-sized fish species are cut
into pieces and pre-cooked in the can before the can is filled with brine or
oil. For large fish species such as mackerel and tuna, the fish are filleted,
cut into pieces of suitable size and also precooked in the can. Bones and
inedible parts are removed when large fish species such as tuna are
canned. After precooking, the liquid is drained from the cans and oil, brine
or sauces are added. The cans are then sealed, sterilized and then stored.

The steps involved in the canning of fish are summarized in Figure 3.

CUSTOMER PAIN POINTS:

Traditionally all kind of packaged fishes are not available in Bangladeshs local market. Also
there is no easy availability for dry fishes throughout the year which make the discontentment in
most of the customers. The dissatisfaction faced by customers in the existing product offerings
provide a window of opportunity for hygienically processed (deodorized) and packaged fishes.
The Discontentment Criticality Matrix below highlights the same.

Discontentment Criticality Matrix

High discontentment
Opportunity for tomorrow Todays star
Traditionally packaged &
mostly consumed
hygienically packaged
fishes

Distant star Challenges for innovation

Page 10 of 25
 Low Discontentment

The matrix clearly captures the fact, that the consumers discontentment because of presently not
available products, are the main driving force that define market attraction of a new product.

Traditionally packaged and mostly consumed hygienically packaged fishes are on the top right
quadrant. This gives a product like that of Excel Fisheries Pvt. Ltd Company a great opportunity
in terms of quick market acceptance, as it significantly lowers the discontentment levels to the
customer.

VALUE PROPOSITION:

Excel Fisheries product offering will provide the hygienically deodorized and packaged fishes
as seen below:

High
Quality Excels
fishes

Hygienically
deodorized &
packaged
Low
Quality

Low quality High quality

Hygienically packaged

III. ORGANIZATION STRUCTURE:

The manpower requirement of our company is as follows from which most of the employees are
hired from the area of Khulna, Jessor and Satkhira:

PARTICULARS NUMBER

Page 11 of 25
 Skilled Workers 5

Semi skilled workers 10

Helpers 5

Salespeople 5

The organization structure of our business would be as follows:

PARTNERS

Quality Production Department Selling and Distribution HR &

Assurance & Department Administrative
Quality Department
Control Logistic
s

IV. OPERATIONAL PLAN

PLANT LOCATION, BUILDING AND LAYOUT

[1] PLANT LOCATION:

Excel Fisheries Pvt Limited
Jessore, Khulna
Tk 2,00,000 per Bigha. Total Value of land is Tk. 2,00,00,000

[2] BUILDING AND LAYOUT:

Total area 100 Bigha

Used at present for production and office 10 bigha

Page 12 of 25
Office

The total capacity of the factory is 1830 m tones and in year 1, 80% (1464 m tones) of it will be
utilized as the labor are semiskilled (not so familiar with the new technologies). After year 1, the
machines and personnel will grow up by a certain amount (See Appendix) the capacity will
utilized by 100%.

Office Site
200sqft

Storage and Washing of fish

Processing machi
Quality Control Department 1830 m tones
200 sqft
200sqft
MACHINES USE FOR FISH PROCESSING:

Automatic Fish Fillet Machine:

Three filleting machines are required and the FOB Price of one set is Tk. 5,460,000 (3 sets cost
Tk. 166,80,000 with installment cost) Packaging of Fish and Cold Storage

Page 13 of 25
Specifications:

1.The fish fillet machine is main made of the stainless steel.

2.The fish belly cutter is easy to operate and high capacity.

The main parameters of the fish fillet machine:

Technical Specifications of the fish belly cutting machine:

Dimensions: 800mmx 1600 mmx1600mm

Weight: 350 Kg
Material: Stainless steel
Electrical connection: 220/380V, 50/60 Hz, 3Ph
Motor: 2.2 Kw
Capacity: 15~25 Pcs/min

Features of the fish fillet machine:

1. High yield about 85~87% after head cutting to
completed product because band knife can be
moved according to the shape of bones.
2. Less size than existing machine by using of
stainless steel and nonferrous metals that is in
compliance with the regulation of HACCP.
3. Filleting can be performed precisely by centering devices when input fishes.
4. Without any works in advance like removing tail or flesh of the belly and better than manual.

Pillow Packaging Machine:

Three packaging machines are required and the FOB Price of one set is Tk. 1,190,000 (3 sets
cost Tk. 38,70,000 with installment cost)

Specifications:

1. Double transducer control. Flexible bag length cutting, operator needn't to adjust the unloadin
g working. Saving time and saving films.

2. Touchable human-machine operation, convenient and quick parameter setting.

3. Self diagnosis failure function, clear failure display.

4. High sensitivity optical electric color mark tracking, digital input cut position which makes the
sealing and cutting more accurate.

Page 14 of 25
5. Separate PID control to temperature, suitable for various packing materials.

6. Stopping the machine in selected position, no sticking to the knife and no waste packing film.

7. Simple driving system, reliable working, convenient maintenance.

8. All the controls are achieved by software, convenient for function adjusting and upgrading.

Type AXIN-450

Film Width MAX:450mm

Bag Length 60-290mm

Bag Width MAX:200mm

Product Height MAX:80mm

Film roll diameter MAX: 320mm

Package Speed MAX:150bags /min

Power 220V,50/60HZ,2.4KVA

Machine Size(mm) 4140*825*1560

Machine Weight 900kg

Remarks With air filling device

Quality Control Department:

Quality control department checks the quality of the fresh fish after washing in the storage area
before forwarding it to other departments. Once the process is done, it also checks quality of
Page 15 of 25
final products also. We recruit local area people with experience in quality control department as
they have experience about fish quality.

Most of our labor will be hired from the local community hence providing them employment.

V. MARKETING PLAN

MARKET ANALYSIS:
Sector highlights
Thriving in this sector are shrimp farming and fish production.

The government is promoting semi-intensive shrimp farming.

Shrimp processing and export industry is largely dominated by the small business sector.

Government has developed initiatives of quality assurance for frozen foods in co-
operation with exporters.

15% cash incentive offered to shrimp export amount.

Industry outlook
This export oriented industry includes the following sub-sectors which are themselves promising
investment opportunities:

Hatcheries

Sustainable aquaculture technology

Feed meals plants

Processing unit for value-added products.Key information

Page 16 of 25
No. of fish processing plants 145
Plants licensed by the GOB 74
Fish processing plants approved by the EU 71
Quantity of frozen food exported in 2008-09 117.31 m products
Shrimp exported in 2008-09 70.63 m lbs
Fish exported in 2008-09 46.68 m lbs
Processing capacity in the total plants 265,000 m tons
Export earnings from shrimp 2008-09 353.16 m US$
Export earnings from fish 2008-09 101.37 m US$
No. of shrimp hatchery 105
Production of shrimp fry 12,000-15,000 m
Shrimp cultured land 170,000 hectare
Unutilized land for shrimp culture 100,000 hectare

Source: Bangladesh Frozen Foods Exporters Association

(BFFEA)

Growth in export of processed fish

Shrimp is the second largest source of export from
Bangladesh which earned as much as 454.53 million US
dollar in the year 2008-09. Commercial culture of shrimp
increased rapidly in the coastal belt of Bangladesh and it went through several stages of
transformation. During the last ten years, Bangladesh has earned international credibility by
responding to the food-safety and quality requirements of its destinations, mostly, the United
States and the European Union countries. Continuous investment has enabled the sector to
progress in the teeth of competition from other countries.

Year Product item Quantity (m lbs) US$ (m)

2006-07 Shrimp and fish 112.15 515.22

2007-08 Shrimp and fish 111.35 534.07

2008-09 Shrimp and fish 454.53 454.53

Source: Bangladesh Frozen Foods Exporters Association (BFFEA)

There are 105,000 galda farms, mostly located in the Khulna area although this method of
cultivation is spreading rapidly in other parts of Bangladesh. Unlike brackish water cultivation of

Page 17 of 25
bagda (black tiger shrimp, Penaeus monodon), freshwater galda cultivation is not restricted to the
coastal regions and is expanding at a rate of 1020 per cent per annum.

COMPETITORS

As we are stepping into

the export market which
is much more established than
native market, it is very
competitive. So, we are
starting to capture 5%
market share in the year 1. In
case of native market business
we will have the opportunity
of 100% as there are no
competitors who can supply fish
processed and ready cook as they are
washed and cut earlier hygienically.

MARKETING STRATEGY

We are using malls and

super markets in
order to attract the
target market that is
health and hygiene conscious.
Also we will focus on the
convenience factor so as to make fishes available throughout the year.

We will serve 2 markets

1) Consumer market

2)
Export
market

Consumer market- Super Shop- in Dhaka city there are 32

Super Shop and we supply products to these super shop directly. For that we have 10 pickup vans
with special central freezer.

Export market- It will be done in Mongla as the exporters in Bangladesh prefer Mongla who
are in Jessore, Satkhira, and Khulna.

PROMOTION

Page 18 of 25
Advertisement-

1) Satellite Television- Advertisement will be aired on 4 no. of satellite television

2) Magazine- Advertisement on 2 No. of Magazine.

3) Branded Auto Van- 5 No. of branded auto van will move around Dhaka city.

4) POP (Point of Purchase) advertisement-

Type of POP- Shelf Talker

Target Market- Retail outlets/Super shops in Dhaka city

5) Leaflets distribution

Target Group- Waiting mothers at school in Dhaka city

1) Personal selling Strategy

Name of program- Sales campaign

Objective- To communicate with consumers directly and sale products

Target Group- Waiting mothers at school in Dhaka city

Sales Promotion

1) Trade Promotion-

Program Name- Display

Objective- Rent shelf space

Target market- Dhaka city

2) Brand Promotion

Name of program- Demonstration/Brand promotion at Super Shop

Objective- To communicate with consumers directly and encourage consumers to purchase

Target Group- Shoppers at super shop in Dhaka city

3) Trade Fair

Page 19 of 25
We will participate at trade fair and exhibition held in Bangladesh.

4) Yearly Distributor Conference

We will organize yearly distributors conference.

5) Sales Force Promotion

Program Name- MIP (Monthly Incentive Program and sales commission

Objective- To motivate sales force to achieve monthly sales target

6) Distributor Promotion

Program Name- i) Yearly best seller award

ii) Cash bonus on monthly target achievement

Objective- To motivate distributors to achieve monthly sales target

DISTRIBUTION CHANNEL
32 Super Shops
Production Warehouse 1
Plant Jessore

Mongla
PRICING STRATEGY:

Set by international market demand in export-

Black Tiger Shrimp (headless, shell on). Size 8/12: US $ 9.40 / 1 Lbs (one pound)
Black Tiger Shrimp (head on & shell on, 80% net, 20% glazy ice). Size 16/20: US$ 8.60 /
kg
Brown Headon Shrimp (headless, shell less) Price US $ 8.50/kg Note: shipping
(Container) charge on buyer side.
Hilisha: $10/kg (export price), Tk. 465/kg (native market price as competitors are givig at
Tk. 460/kg without packing and processing of fishes)
Rui fish: $9.40/kg (export price), Tk. 265/kg (native market price as competitors are givig
at Tk. 260/kg without packing and processing of fishes)
Sea fishes: $10.20/kg (export price)
Fresh fishes: $11/kg (export price)

Normally in each container 1600 to 1900 nos to carton can be packed, it depends on buyers
carton sizes with quantity, size & weight required. Normally each 20 ft Container can loaded
21,000 KG. The packing grade per cartoon can be organized and marked them accordingly as
Page 20 of 25
Buyers instruction. The above prices are negotiable due to Sea Fish prices always change on
demand access to International Market.

VI. STRATEGIC PLAN

COMPETITIVE STRATEGY

Our product is differentiated from the other traditional loose fish available in the market as it is
processed and packaged hygienically to retain the nutrient value of the fish. The packaging
ensures that the product is protected from infestation by insects and other agents that mitigate the
quality and shelf life of the product. The distribution strategy (convenience in availability at
nearby super marts and superstores) also provides competitive advantage to our product.

Our product is differentiated from other processed packaged fish with respect to product
characteristics, distribution strategy, and promotional variables.

KEY SUCCESS FACTORS

The key success factors of our company are as follows:

1. Providing quality product at a reasonable price to the target consumers.
2. Establishing an efficient distribution system.

FUTURE PRODUCTS AND SERVICES

The potential products and services will be provided by our company are as follows:

1. Dried fish

2. Dried fish varieties in Global market

3. Shark liver oil.

RISK MANAGEMENT

We anticipate risk in these three areas:

1. Market risk:

The preliminary research indicates that the target consumers are willing to
purchase our product. Competition in this industry can be overcome by

Page 21 of 25
 strengthening and expanding the distribution network across Dhaka and
Chittagong with addition of Sylhet.

The demand of fish can fluctuate during festivals thus reducing the sales in this
period.

Threat of new entrants dealing with packaged fish business.

2. Supply chain and logistics risk:

Since fish production is subject to seasonal fluctuation, raw material procurement

and hence production will be affected during these periods.

3. Technological risk:

Since the machines are new technologies there is a risk of lower production rate
than expected.

SWOT ANALYSIS.
Strengths

Abundant availability of raw material.

Reasonable price.

Provide healthy and hygienic fishes

Vast domestic market.

Target customers are upper and middle class people

Weaknesses

Lack of branding image.

High cost of machinery.

Fragmentation of market.

High requirement of working capital.

Seasonality of raw material.

Page 22 of 25
 Fluctuation in market demand.

High transportation and inventory carrying cost

Opportunities

Large expansion possibilities related to fish business.

Rising income levels and changing consumption patterns. (shift to hygienic food
products)

Favorable demographic profile and changing lifestyles

Integration of development in contemporary technologies such as cod liver oil

extraction and export that, offer vast scope for rapid improvement and progress

Opening of global markets.

Threats

Affordability and cultural preferences of fresh fish.

Loose fish sellers reducing their prices.

VII. FINANCIAL PLAN

BREAKEVEN ANALYSIS-

The break-even price for selling the product is approximately 34.55% of the existing price. To
recover the 1st years investment (in fixed costs) in the business, the company would be requiring
2 year .i.e. 4th quarter of 2nd year. For that the sales of approximately 214620 Kg of total fish
should be done.

Page 23 of 25
 APPENDIX

Frozen Shrimp & Fish Exports from Bangladesh (1994-1995 to 2008-2009)

Year Item Qty (Million Value(Milli Taka

Lbs) on $) Crore

2000-2001 Shrimp & Fish 76.70 303.23 1957.79

2001-2002 Shrimp & Fish 88.38 276.11 1585.25

2002-2003 Shrimp & Fish 73.67 321.81 1863.27

2003-2004 Shrimp & Fish 84.48 390.25 2300.92

2004-2005 Shrimp & Fish 96.11 420.81 2587.90

2005-2006 Shrimp & Fish 107.85 459.11 3200.00

2006-2007 Shrimp & Fish 112.15 515.32 3556.78

2007-2008 Shrimp & Fish 111.36 534.07 3663.70

2008-2009 Shrimp & Fish 117.31 454.53 3127.16

Page 24 of 25
REFERENCES:
www.scribd.com/.../fisheries-Business-Plan-Finley-Fisheries-Pvt-Ltd
http://www.fis.com/fis/aquaculture/index.asp?l=e
http://www.bffea.net/export.htm
http://www.boi.gov.bd/key-sectors/frozen-foods
http://www.fbcci-bd.org/HTML/POLICY/export-p4.htm
http://www.baader.com/News.151+M50921fe0567.0.html?
&tx_ttnews[backPid]=52&tx_ttnews[tt_news]=33
http://www.alibaba.com/product-
gs/319874711/Pillow_Packaging_Machine_for_fish_product_.html
http://www.boi.gov.bd/key-sectors/frozen-foods
http://in.reuters.com/article/idINIndia-34239020080626
http://ape8581.en.china.cn/selling-leads/detail,1001234316,Bangladesh-Sea-Fish-Fish-
Products-Lobster-Jumbo-Shrimp-Crab.html

Page 25 of 25