Managing a Vertical Crab Farming Facility

Objective:
Outsourcing of the operations management with the expertise and operations by a
separate management company

Investment & marketing:

Investor will contribute the full capital outlay. in three stages of 10,000 boxes within a
period stipulated by the management company
The investor will take full responsibility for marketing and ensuring export facilities locally
are available to facilitate export

Management:
The Management Company will form be a separate entity to sign up a management contract
with the investor/investment company
Step up implimentation in stages of 5,000 10,000 boxes within a period stipulated by the
management company.
Fees:
The Management Company fee will be structures as follows :

i.) Developing a complete business plan Rs.2,000,000

ii.) Gget an non dilutable equity of 10% of the investors company
iii.) and a monthly fee of LKR 1,500,000 for 10,000, LKR 2,500,000 for 20,000 and
LKR 3,500,000 per month for 30,000.
Initial monthly setup fee (maximum 4 months) of Rs.1 million per month net of
taxes
After 4 months :
Upto 10,000 boxes Rs.1,500,000 per month
Every 1,000 boxes thereafter additional Rs.100,000 per month
Transport, meals and accommodation to be provided by the investor

Owner/Investor Engagement:
The capital investment will be for the infrastructure owned by the investor as a separate
organization. The assets will be owned by the Investment company and the Management
company will run the affairs at the agreed remuneration

Contract:
Both companies will sign an exclusive long-term contract with renewable option mandated.
We must state a minimum period to protect our IP

Please Note guys :

1. I feel the coverage is weak

2. Ensure we cover ourselves well – think through carefully with a fine tooth comb
assuming we come on board fulltime
3. I have included whatever I have noted form our discussions such as export facility,
marketing responsibility etc

Operations Outline
1. Setting up Infrastructure with expertise input.
2. Crab life cycle management with inherent biological, aquaculture and crab health
management.
3. Processing for domestic and export distribution

Constraints:
1. Dependance on wild seed stock until hatchery set up.