Excel Fisheries Private Limited
Healthy Product - Healthy Trade
21 December, 2010 Riyasat Azim Mahmuda Rahman Ummeya Khadija Bab-e-umme Honey Md. Kamruzzaman 082011098 082011089 082011068 082011067 082011069
Contents Executive Summary The Company Our Vision Our Mission Business Concept Type Of Ownership Products OFFERING Processing Of The Fishes Customer Pain Points Value Proposition Organization Structure Operational Plan Plant Location, Building And Layout Machines Use For Fish Processing Marketing Plan Market Analysis Competitors Marketing Strategy Promotion Distribution Channel Pricing Strategy Strategic Plan Competitive Strategy Key Success Factors Future Products And Services Risk Management Swot Analysis Financial Plan Breakeven Analysis Appendix
Page number 2 3 3 3 3 3 5 8 9 9 10 10 11 13 13 15 16 16 17 18 18 18 18 19 19 19 20 20 21
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A pilot plant would be set up in Jessor and will be functioning from June 2011 Manufacturing will include in-house function like filleting. The entrepreneurial team consists of Director Strategy. Hygienic fish with a good quality will be the USP of the company. Frozen foods are the second largest export sector of the economy. Excel Fisheries Private Limited Company will make use of modern technology and will offer hygienically packed fish. logistics Manager.EXECUTIVE SUMMARY Processed fish have been considered a widespread industry since a very long time. Loose packaged fish available in local market has led to the dissatisfaction among the customers because of its unavailability in proper packaging. control and guidance of foreign trained handling & processing experts.
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. At all levels. Excel Fisheries Pvt Limited will be marketing the product by giving advertisements in the newspapers and commercial ads for the television. Sea Water shell On (SWSO). The team members know each other for several years and are highly compatible. Export oriented fish processing plants produce Fresh Water shell On (FWSO). trimming and packaging of fishes. This property will make the company vastly superior to the currently available loose packaged fish market. USFDA registrations and directives of the European Communities concerning the production and exportation of frozen foods are strictly followed. This dissatisfaction provides a window of great opportunity for hygienically processed and packed fish which satisfies the need of the customers. Marketing Manager and Quality control Manager. The massive natural resources available in Bangladesh make this sector particularly promising for us to make invest.I. According to the market survey consumers won¶t mind paying a premium if they are provided hygienically processed and packaged fish. shrimp products under the most hygienic and sanitary condition under the supervision. Production Manager. The project will require funding from Venture Capitalists as well as bank.
Shrimps Items I. PRODUCTs OFFERING: The products offered by Excel Fisheries Pvt.2 KGS×6 per Mc or 1 Kg poly bag
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. 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. packaging and trading company in Bangladesh.8/1. TYPE OF OWNERSHIP.II. professional in services and integrity in business. BUSINESS CONCEPT Excel Fisheries Pvt.Healthy Trade". We aim to produce and supply the finest quality frozen foods. our core values serve as our roadmap guiding our actions. Limited is a fish processing. Cultivated Black Tiger Headon Shellon Shrimps: Packing : 1000 Gm×10per Mc (80% NW/FC) or as per customer's requirement Size per Kg : 8/12-13/15-16/20-21/3031/40
II.Private ownership. exporting. Our motto is "Healthy Product . Ltd are hygienically processed and packaged fishes which include three varieties: 1. Cultivated Black Tiger Headless Shellon Shrimps: Packing : 4LBS/1. OUR MISSION: While our vision defines our destination. THE COMPANY OUR VISION: To be one of the leaders in hygienically processed and packaged fish products supplier in Bangladesh. Our factory and products are inspected before shipment to ensure quality. and are constantly upgrading and implementing new processes to ensure superior food production.
Fresh Water Headless Shellon Shrimps: Packing : 4 LBS BF×6 per Mc or 1 Kg IQF poly bag×10 per Mc (80% NW/FC) or as per customer's requirement
2. Shole: Packing : IQF/IWP Whole Gudded 20 Kgs per MC & BF/WP/STEAK 15X600 Gm or as per customers requirement
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. Yellow Crocker: Packing : Whole round semi IQF 10 kg x 2 per MC or as per customer's requirement
III. Fresh Water Fishes I.III. Hilsha: Packing : IQF/IWP Whole gudded 20 kgs per MC & BF/IWP/Steak 15×600 gm or as per customer's requirement
II. Brown Headon Shrimps: Packing : 500 Gm semi IQF×20 per Mc or as per customer's requiremet
IV. Sea Fishes I. Ribon Fish: Packing : IQF/IWP 20 kgs per MC or as per customer's requirement
The filleting machines comprise pairs of mechanically operated knives which cut the fillets from the backbone and remove the collarbone. The filleting department is generally separated from the pretreatment area by a wall. which is generally done by mechanical filleting machines.
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. The next step in the process is filleting. Ayre: Packing : IQF/IWP Whole gudded 20 kgs per MC & BF/IWP/Steak 15X600 gm or as per customer's requirement
V. grading according to size and de-heading. Koi: Packing : Whole cleaned scale of block frozen 300 g x 15 per MC or as per customer's requirement
III. Some fish fillets may also be skinned at this stage. to prevent workers and goods passing from the non-sterile pretreatment area to the sterile filleting area.II. washing. Pangus: Packing : IQF/IWP Whole gudded 20 kgs per MC & BF/IWP/Steak 15×600 gm or as per customer's requirement
PROCESSING OF THE FISHES: y Filleting of white fish: Pretreatment of the fish involves the removal of ice. Rohu: Packing : IQF/IWP Whole Gudded 20 Kgs per MC & BF/WP/STEAK 15X600 Gm or as per customers requirement
IV. Large fish also scaled before further processing.
In the trimming department. As a final step before packaging. The steps involved in the filleting of oily fish are summarized in Figure 2. the fillets are inspected to ensure they meet product standard. the fillets may be cut into portions according to weight or divided into parts such as loin. Oil content varies not only between species but also within species. removing defects and any parts that are of inferior quality. the ice being separated from the products by a layer of plastic. Depending on the final product. pin bones are removed and operators inspect the fillets.
Packaging/storage Fresh products are packaged in boxes with ice. Frozen products are packed as 6±11 kg blocks in waxed cartons. Fillets from these species may contain up to 30% oil. 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. The steps involved in filleting white fish are summarized in Figure 1. The blocks are typically frozen and then kept in cold storage. Offcuts are collected and minced. tail and belly flap.
Figure 1 Process flow diagram for the filleting of white fish
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such as mackerel. The flumes transport the fish to holding vessels. The effluent generated from this process has a high organic load and has to be neutralized before being discharged. Fish are flumed. where the heads. Some fish species.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 cutting The fish are off-loaded at the plant. The canning process depends on the size of the fish. onto cutting tables. as required. need to have the skin removed by immersion in a warm caustic bath. where they remain until required for processing. Small fish species such as sardines and pilchards are generally canned whole. weighed and loaded into water flumes. tails and other inedible parts are removed. with only the heads and tails removed. These whole-fish products are cooked in the can Page 8 of 23
Can filling and cooking
The steps involved in the canning of fish are summarized in Figure 3. Also there is no easy availability for dry fishes throughout the year which make the discontentment in most of the customers. After precooking. For large fish species such as mackerel and tuna. The cans are then sealed. Discontentment Criticality Matrix High discontentment Opportunity for tomorrow
Today¶s star Traditionally packaged & mostly consumed hygienically packaged fishes
Distant star Low Discontentment
Challenges for innovation
The matrix clearly captures the fact. cut into pieces of suitable size and also precooked in the can. CUSTOMER PAIN POINTS: Traditionally all kind of packaged fishes are not available in Bangladesh¶s local market.
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. Medium-sized fish species are cut into pieces and pre-cooked in the can before the can is filled with brine or oil. the liquid is drained from the cans and oil. The Discontentment Criticality Matrix below highlights the same. The dissatisfaction faced by customers in the existing product offerings provide a window of opportunity for hygienically processed (deodorized) and packaged fishes.after it has been filled with brine or oil. the fish are filleted. that the consumer¶s discontentment because of presently not available products. Bones and inedible parts are removed when large fish species such as tuna are canned. sterilized and then stored. brine or sauces are added. are the main driving force that define market attraction of a new product.
VALUE PROPOSITION: Excel Fisheries¶ product offering will provide the hygienically deodorized and packaged fishes as seen below:
Hygienically deodorized & packaged
Low Quality Low quality High quality
III.Traditionally packaged and mostly consumed hygienically packaged fishes are on the top right quadrant. Jessor and Satkhira: PARTICULARS Skilled Workers NUMBER 5
Semi skilled workers 10 Helpers 5
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. ORGANIZATION STRUCTURE: The manpower requirement of our company is as follows from which most of the employees are hired from the area of Khulna. Ltd Company a great opportunity in terms of quick market acceptance. as it significantly lowers the discontentment levels to the customer. This gives a product like that of Excel Fisheries Pvt.
Khulna Tk 2.Salespeople
The organization structure of our business would be as follows: PARTNERS
Quality Assurance & Quality Control
Selling and Distribution Department Logistic s
HR & Administrative Department
IV.00.000 per Bigha.000  BUILDING AND LAYOUT: Total area 100 Bigha Used at present for production and office 10 bigha The total capacity of the factory is 1830 m tones and in year 1. the machines and personnel will grow up by a certain amount (See Appendix) the capacity will utilized by 100%. 80% (1464 m tones) of it will be utilized as the labor are semiskilled (not so familiar with the new technologies).
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. After year 1. OPERATIONAL PLAN PLANT LOCATION. BUILDING AND LAYOUT  PLANT LOCATION: Excel Fisheries Pvt Limited Jessore.00.00. 2. Total Value of land is Tk.
The fish belly cutter is easy to operate and high capacity.460.000 (3 sets cost Tk.Storage and Washing of fish
Office Site 200sqft Processing machines 1830 m tones
Quality Control Department 200 sqft
Packaging of Fish and Cold Storage
MACHINES USE FOR FISH PROCESSING: Automatic Fish Fillet Machine: Three filleting machines are required and the FOB Price of one set is Tk. 5. 166.80.The fish fillet machine is main made of the stainless steel. 2. The main parameters of the fish fillet machine: Technical Specifications of the fish belly cutting machine: Page 12 of 23
.000 with installment cost) Specifications: 1.
operator needn't to adjust the unloadin g working.190. 38. no sticking to the knife and no waste packing film. suitable for various packing materials.000 with installment cost) Specifications: 1. 5. Stopping the machine in selected position. Saving time and saving films. 1. 4. 3Ph Motor: 2.000 (3 sets cost Tk.70. Less size than existing machine by using of stainless steel and nonferrous metals that is in compliance with the regulation of HACCP. 6. convenient and quick parameter setting.Dimensions: 800mmx 1600 mmx1600mm Weight: 350 Kg Material: Stainless steel Electrical connection: 220/380V. High sensitivity optical electric color mark tracking. 3. Separate PID control to temperature. 3. Touchable human-machine operation. Pillow Packaging Machine: Three packaging machines are required and the FOB Price of one set is Tk. Flexible bag length cutting. convenient maintenance. convenient for function adjusting and upgrading. 7. 8. Page 13 of 23
. Simple driving system. Double transducer control. 2. Self diagnosis failure function. clear failure display. 2. 50/60 Hz. Without any works in advance like removing tail or flesh of the belly and better than manual.2 Kw Capacity: 15~25 Pcs/min Features of the fish fillet machine: 1. 4. reliable working. Filleting can be performed precisely by centering devices when input fishes. digital input cut position which makes the sealing and cutting more accurate. All the controls are achieved by software. High yield about 85~87% after head cutting to completed product because band knife can be moved according to the shape of bones.
We recruit local area people with experience in quality control department as they have experience about fish quality. 15% cash incentive offered to shrimp export amount. V.2.
y y y y
The government is promoting semi-intensive shrimp farming. MARKETING PLAN MARKET ANALYSIS: Sector highlights Thriving in this sector are shrimp farming and fish production. Government has developed initiatives of quality assurance for frozen foods in cooperation with exporters.Type Film Width Bag Length Bag Width Product Height Film roll diameter Package Speed Power Machine Size(mm) Machine Weight Remarks
AXIN-450 MAX:450mm 60-290mm MAX:200mm MAX:80mm MAX: 320mm MAX:150bags /min 220V.4KVA 4140*825*1560 900kg 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. it also checks quality of final products also. Most of our labor will be hired from the local community hence providing them employment.50/60HZ. Once the process is done.
Industry outlook This export oriented industry includes the following sub-sectors which are themselves promising investment opportunities:
y y y
Hatcheries Sustainable aquaculture technology Feed meals plants Page 14 of 23
. Shrimp processing and export industry is largely dominated by the small business sector.
000 hectare 100.53 million US dollar in the year 2008-09. Year 2006-07 2007-08 2008-09 Product item Shrimp and fish Shrimp and fish Shrimp and fish Quantity (m lbs) 112. of fish processing plants Plants licensed by the GOB Fish processing plants approved by the EU Quantity of frozen food exported in 2008-09 Shrimp exported in 2008-09 Fish exported in 2008-09 Processing capacity in the total plants Export earnings from shrimp 200809 Export earnings from fish 2008-09 No. Commercial culture of shrimp increased rapidly in the coastal belt of Bangladesh and it went through several stages of transformation. Continuous investment has enabled the sector to progress in the teeth of competition from other countries.53
Source: Bangladesh Frozen Foods Exporters Association (BFFEA)
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.31 m products 70. During the last ten years.63 m lbs 46.37 m US$ 105 12.16 m US$ 101. of shrimp hatchery Production of shrimp fry Shrimp cultured land Unutilized land for shrimp culture 145 74 71 117.000 m tons 353.Key information No. the United States and the European Union countries.07 454.15 111.000-15.68 m lbs 265. Bangladesh has earned international credibility by responding to the food-safety and quality requirements of its destinations.53 US$ (m) 515. mostly.000 m 170.y
Processing unit for value-added products.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 454.35 454.22 534.
we are starting to capture 5% market share in the year 1. Penaeus monodon). 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. Unlike brackish water cultivation of bagda (black tiger shrimp.000 galda farms. freshwater galda cultivation is not restricted to the coastal regions and is expanding at a rate of 10±20 per cent per annum. So. Page 16 of 23
. it is very competitive.There are 105.
COMPETITORS As we are stepping into the export market which is much more established than native market. mostly located in the Khulna area although this method of cultivation is spreading rapidly in other parts of Bangladesh.
Retail outlets/Super shops in Dhaka city 5) Leaflets distribution
Target Group.5 No.MARKETING STRATEGY We are using malls and super markets in order to attract the target market that is health and hygiene conscious.To communicate with consumers directly and sale products Target Group.Advertisement will be aired on 4 no. Export market. and Khulna. of branded auto van will move around Dhaka city. Branded Auto Van.Advertisement on 2 No. Satkhira.It will be done in Mongla as the exporters in Bangladesh prefer Mongla who are in Jessore.Waiting mothers at school in Dhaka city
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. of Magazine. POP (Point of Purchase) advertisementType of POP.Super Shop.Shelf Talker Target Market.Waiting mothers at school in Dhaka city 1) Personal selling Strategy
Name of program. PROMOTION Advertisement1) 2) 3) 4) Satellite Television. of satellite television Magazine.Sales campaign Objective.in Dhaka city there are 32 Super Shop and we supply products to these super shop directly. Also we will focus on the convenience factor so as to make fishes available throughout the year. We will serve 2 markets 1) 2) Consumer market Export market
Consumer market. For that we have 10 pickup vans with special central freezer.
To motivate distributors to achieve monthly sales target DISTRIBUTION CHANNEL 32 Super Shops Production Plant Warehouse 1 Jessore Mongla Page 18 of 23
.Demonstration/Brand promotion at Super Shop Objective. 4) Yearly Distributor Conference
We will organize yearly distributor¶s conference.To communicate with consumers directly and encourage consumers to purchase Target Group.Sales Promotion 1) Trade Promotion-
Program Name.Shoppers at super shop in Dhaka city 3) Trade Fair
We will participate at trade fair and exhibition held in Bangladesh.To motivate sales force to achieve monthly sales target 6) Distributor Promotion i) ii) Yearly best seller award Cash bonus on monthly target achievement
Objective.MIP (Monthly Incentive Program and sales commission Objective. 5) Sales Force Promotion
Program Name.Dhaka city 2) Brand Promotion
Name of program.Rent shelf space Target market.Display Objective.
Providing quality product at a reasonable price to the target consumers.40 / 1 Lbs (one pound) Black Tiger Shrimp (head on & shell on. 80% net.40/kg (export price). and promotional variables. 2. 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.20/kg (export price) Fresh fishes: $11/kg (export price)
Normally in each container 1600 to 1900 nos to carton can be packed. 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. Hilisha: $10/kg (export price). The distribution strategy (convenience in availability at nearby super marts and superstores) also provides competitive advantage to our product. Size 16/20: US$ 8. KEY SUCCESS FACTORS The key success factors of our company are as follows: 1. 260/kg without packing and processing of fishes) Sea fishes: $10. 265/kg (native market price as competitors are givig at Tk.000 KG. Tk. VI. shell on).PRICING STRATEGY: Set by international market demand in exporty y y y y y y Black Tiger Shrimp (headless.60 / kg Brown Headon Shrimp (headless. 460/kg without packing and processing of fishes) Rui fish: $9. Establishing an efficient distribution system. distribution strategy. size & weight required. 20% glazy ice).
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.50/kg Note: shipping (Container) charge on buyer side. The above prices are negotiable due to Sea Fish prices always change on demand access to International Market. Size 8/12: US $ 9. Normally each 20 ft Container can loaded 21. it depends on buyers carton sizes with quantity. Tk. shell less) Price US $ 8. 465/kg (native market price as competitors are givig at Tk. The packing grade per cartoon can be organized and marked them accordingly as Buyers instruction. Our product is differentiated from other processed packaged fish with respect to product characteristics.
Technological risk: y Since the machines are new technologies there is a risk of lower production rate than expected. Shark liver oil. RISK MANAGEMENT We anticipate risk in these three areas: 1. Supply chain and logistics risk: y Since fish production is subject to seasonal fluctuation. The demand of fish can fluctuate during festivals thus reducing the sales in this period. Dried fish varieties in Global market 3. Threat of new entrants dealing with packaged fish business. Strengths
y y y y y
Abundant availability of raw material.
SWOT ANALYSIS. Market risk: y The preliminary research indicates that the target consumers are willing to purchase our product. raw material procurement and hence production will be affected during these periods.FUTURE PRODUCTS AND SERVICES The potential products and services will be provided by our company are as follows: 1. Dried fish 2. Competition in this industry can be overcome by strengthening and expanding the distribution network across Dhaka and Chittagong with addition of Sylhet. Target customers are upper and middle class people
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3. Reasonable price. Provide healthy and hygienic fishes Vast domestic market.
(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. Fluctuation in market demand. To recover the 1st years investment (in fixed costs) in the business. High requirement of working capital.
Affordability and cultural preferences of fresh fish. Rising income levels and changing consumption patterns. Fragmentation of market. Seasonality of raw material. 4th quarter of 2nd year. For that the sales of approximately 214620 Kg of total fish should be done.e. FINANCIAL PLAN
BREAKEVEN ANALYSISThe break-even price for selling the product is approximately 34.i. offer vast scope for rapid improvement and progress Opening of global markets.
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. VII. the company would be requiring 2 year . High transportation and inventory carrying cost
y y y y y
Large expansion possibilities related to fish business. Loose fish sellers reducing their prices. High cost of machinery.55% of the existing price.Weaknesses
y y y y y y y
Lack of branding image.
Shrimp & Fish
Shrimp & Fish
Shrimp & Fish
Shrimp & Fish
Shrimp & Fish
Shrimp & Fish
Shrimp & Fish
534.APPENDIX Frozen Shrimp & Fish Exports from Bangladesh (1994-1995 to 2008-2009) Year
Shrimp & Fish
Qty (Million Lbs)
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Shrimp & Fish
REFERENCES: y www.html
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.com/.fbcci-bd.htm y http://www.151+M50921fe0567.boi..alibaba.baader.china.reuters.asp?l=e y http://www.bffea.com/article/idINIndia-34239020080626 y http://ape8581.org/HTML/POLICY/export-p4./fisheries-Business-Plan-Finley-Fisheries-Pvt-Ltd y http://www.bd/key-sectors/frozen-foods y http://in.com/productgs/319874711/Pillow_Packaging_Machine_for_fish_product_.scribd.0.com/News.gov.cn/selling-leads/detail.com/fis/aquaculture/index.fis.en.net/export.html?&tx_ttnews[backPid]=52&tx_ ttnews[tt_news]=33 y http://www.gov.1001234316.html y http://www..htm y http://www.Bangladesh-Sea-Fish-FishProducts-Lobster-Jumbo-Shrimp-Crab.bd/key-sectors/frozen-foods y http://www.boi.