LETTER OF TRANSMITTAL

October 31,2023
Md. Mahabub Morshed
Lecturer,
Army Institute of Business Administration,

Subject: Submission of "Eco Grow Fertilizers; Organic Fertilizer From Water

Hyacinth

Dear Sir,
I am writing to submit our report on "Eco Grow Fertilizers: Organic Fertilizer from
Water Hyacinth," as per your assignment for the "Environmental Studies" course
(Course Code - GED 1107). In the course of preparing this report, we extensively
referenced various sources, including the internet, books, class lectures, and other
relevant materials. While we've made every effort to ensure its accuracy, there
might be unintentional errors.
We hope that our report aligns with your expectations. We will be glad to answer
any kind of question-related to this report and we will be glad to provide further
clarification if needed.

Yours faithfully,
Md. Mahir Labib Khan
122312018

1|Page
 ACKNOWLEDGEMENT

We sincerely acknowledge our debt to our course advisor Mahbub Morshed,

Lecturer, Army Institute of Business Administration for his valuable counselling
towards the improvement of the report. Without his encouragement, this would
have never been possible. We are overwhelmed with gratitude to our course
advisor as he helped us in terms of propulsion and completing this term paper
impeccably.
Yours faithfully,
Team PRIME

Team Members:
Md Mahir Labib Khan 122312018
Navid Islam 122312042
Faheem Mohtaseem 122312004
Mehedi Hasan Emon 122312038
Mahimul Ononoto 122312040

2|Page
 DECLARATION

We hereby declare this term paper has been written by myself and has not been
previously submitted to any other University/ Institution/ Journal/ Organization.
Some data are copied from sources that are mentioned in the reference. The work
does not breach any copyright.

Yours faithfully,
Team PRIME

Team Members:
Md Mahir Labib Khan 122312018
Navid Islam 122312042
Faheem Mohtaseem 122312004
Mehedi Hasan Emon 122312038
Mahimul Ononoto 122312040

3|Page
 Table of Contents
Topic Name Page No.
LETTER OF TRANSMITTAL 1
ACKNOWLEDGEMENT 2
DECLARATION 3
Abstract 5
Introduction 6
Company Overview 7-8
Business Idea 9
Goals and Objectives 10
Geographical segmentation 10
Market potential 11
Existing Scenario 11-12
Future plan 12
Barriers to Entry 12
Competitive Edge (Unique Value 13
Proposition)
Marketing Strategy 14
Branding Strategy 14
Sales Strategy 15
Operations 15-16
Personnel plan 16
Management 17
Capital Investment 17
Outsourcing 18
Action Plan 18
Evaluation of weakness 18
Contingency Plan 19
Revenue Projections 19
Income Statement 20
Cash Flows 21
Balance Sheet 22

4|Page
 Abstract

This research paper explores the business venture called Eco Grow Fertilizers,
which aims to produce bio fertilizers using water hyacinth and other waste
materials like farmyard manure and oilcake. This sustainable agricultural initiative
tackles the fertilizer shortage, in Bangladesh while promoting farming practices.
The paper dives into the company’s mission, goals, market potential and unique
position in the changing fertilizer industry. Furthermore it examines the challenges
and opportunities within the fertilizer market highlighting Eco Grow Fertilizers
pioneering approach and its potential to make an impact on both the environment
and agriculture, in Bangladesh.

5|Page
 Introduction

In a world where we are grappling with the impact caused by agriculture Eco Grow
Fertilizers emerges as a beacon of hope. This innovative venture not addresses the
shortage of fertilizers, in Bangladesh but also advocates for eco-friendly farming
practices. Eco Grow Fertilizers specializes in bio fertilizers which is becoming a
trend as we become aware of the harmful effects of excessive chemical fertilizers.
A key component of this eco solution is water hyacinth a growing weed found in
Bangladesh’s water bodies. Given that the demand for fertilizers in Bangladesh
surpasses its supply there is an opportunity to bridge this gap while reducing
reliance on imports. Organic fertilizer landscape currently consists mainly of small
scale NGO initiatives and limited biogas plants. However, our company aims to
take the lead by offering bio fertilizers at a significantly lower price compared to
chemical alternatives. Throughout this paper we will delve into Eco Grow
Fertilizers objectives and market potential. Our pioneering spirit seeks to
revolutionize agriculture, in Bangladesh by promoting practices.

6|Page
Company Overview

Brand Name: Eco Grow Fertilizers

Brand Slogan: "Cultivating Sustainability, Nurturing Growth"

Name of the Service: Organic Fertilizer from Water Hyacinth

Type of Service: Production and distribution of bio-fertilizers made from water

hyacinth, farmyard manure, and oilcake.

Platform: Physical production facility based in Habiganj, Bangladesh.

Big Idea: Addressing Bangladesh's severe fertilizer shortage with environmentally

friendly, nutrient-rich bio-fertilizers while promoting sustainable farming practices.
Eco Grow Fertilizers leverages the invasive water hyacinth and focuses on the
hawor region to make a positive impact on local agriculture and the environment.

Price: Highly competitive pricing, with our compost sold at a cost 68% lower than
chemical fertilizers, making it an affordable and eco-conscious choice for local
farmers.

7|Page
Band Logo:

8|Page
ECO GROW FERTILIZERS ; Organic Fertilizer
From Water Hyacinth

Business Idea

Eco Grow Fertilizers is a business venture that will produce bio-fertilizers from
water hyacinth and other waste materials like farmyard manure and oilcake. Water
hyacinth (Kochuri Pana) is a sub-tropical weed that infests the water bodies of
Bangladesh and is known to double its biomass within 2 weeks.

Our initial fertilizer plant will be based in Habiganj, which is part of the hawor
region – an area currently hit hard by a shortage of fertilizers. Experts have
identified this region as one of the worst affected in the country. Our mission is to
address this crisis by providing compost to local farmers. Additionally, we aim to
improve soil quality and texture, which has suffered due to the extensive use of
chemical fertilizers over the years.

Currently, Bangladesh faces an acute fertilizer crisis. The aggregate demand of

fertilizer in the country stands at approximately 28 lac metric tons each year. Only
15 lac metric tons of fertilizers are produced and another 10 lac is imported,
leaving a shortage of a massive shortage of 3 lac metric tons. Thus, there is a
tremendous opportunity, from an entrepreneur’s point of view, to manufacture and
sell fertilizer to the local market. Local production will also displace the need for
expensive imports. Moreover, the increasing awareness among farmers and
environmentalists means that the demand for organic or bio fertilizers will keep
experiencing positive growth in the coming years.

It's important to note that the organic fertilizer industry in Bangladesh is quite
fragmented, with small-scale NGO initiatives and a limited number of biogas
plants producing nutrient-diluted slurry fertilizers as by-products. This gives Eco
Grow Fertilizers a distinct advantage as pioneers in the market. We're committed to
making a positive impact on the agricultural landscape and the environment in
Bangladesh.

9|Page
Goals and Objectives

The firm’s broad objective is to minimize the fertilizer shortage in operational

areas while promoting Integrated Plant Nutrient Management (IPNM) 3 and
enriching soil fertility. It will also heighten awareness of organic farming so as to
reduce dependency on chemical fertilizers and ensure better yield from the
country’s agricultural lands in the long run.

The goals of Eco Grow Fertilizers are as follows:

1. Serve the fertilizer need of farmers in hawor region within 5 years

2. Reach payback period in 1.2 years
3. Expand operations to Brahamanbaria and Kishorgnaj after 5 years of operation
4. Eventually customize product in accordance with the nutrient requirements of
different geographical locations.

In the short term, our focus is on addressing the fertilizer shortage in the hawor
region. As we produce our fertilizers, we'll also be contributing to the improvement
of local water bodies and enhancing waste management practices on surrounding
farms. Plus, our competitively priced products will help reduce the financial
burden on farmers when purchasing fertilizers. We're not just a business; we're a
force for positive change in the agricultural landscape.

Geographical segmentation
The company has chosen Habiganj as the location for its factory mainly for two
reasons. First of all, according to expert opinion, the hawor region of the country is
currently facing the most severe fertilizer crisis. These regions including Habiganj,
cover 11 upazilas completely and parts of 23 other upazilas. Also, a distinctive
characteristic of the hawor region is the extensive wet marsh lands, which makes it
the ideal breeding ground for water hyacinth. This means by choosing Habiganj,
the company is not only assured of a fairly constant supply of raw materials, but it
will also face a market with plenty of demand and growth potentials.

10 | P a g e
Market potential

In the current agricultural landscape, the market is largely dominated by chemical

fertilizer-producing companies. However, there's a growing awareness of how
reckless fertilizer use is depleting soil fertility. This shift in mindset is making
organic and biofertilizers increasingly popular. Recent research shows that an
upazila requires around 3,500 tons of fertilizer during any particular season, of
which only 450 ton is supplied at present. In such a taut situation, an increment in
the supply of fertilizers will be welcomed unconditionally.
Eco Grow Fertilizers Co. defines the local farmers of Habiganj as its target market.
Our compost contains a standardized quantity of all necessary macronutrients,
NPK6, to suit crops of all seasons. The company encourages IPNM. By combining
organic and inorganic fertilizers, we aim to strike a balance between crop yield and
soil health. What's even more encouraging is that our survey revealed that 78.1
percent of farmers are eager to embrace organic fertilizers. Also, interviewing the
local dealers in Habiganj revealed that dealers were unable to meet 72% of the
demand.

Competition

Existing Scenario

In Bangladesh, bio-fertilizer is both a new and an old concept in the sense that
local farmers have always used small amounts of waste on their vegetable patches.
However, a balanced usage of organic fertilizers with chemical fertilizers is an
emerging new concept. Other organizations have mainly focused on inorganic
fertilizer production. This means at entry, Eco Grow Fertilizers will not face major
competition. The nearest competitor of the company is Grameen Shakti which sells
their by-product slurry as a bio fertilizer. However their operations are only limited
to a few gas stations built in the Northern districts. Other NGOs target small
village-scale projects. All these projects represent an insignificant portion of the
total fertilizer produced in the country.
Eco Grow Fertilizers is unique in the sense that currently, it’s the only company
that will produce bio-fertilizer by proportionately balancing its nutrients. It will

11 | P a g e
also be the sole company that produces organic fertilizers as the major revenue
generating product. What also sets the company apart is its competitive pricing. At
present, a mixed formulation of chemical fertilizers (Urea, TSP) sells at Tk. 32 per
kg while organic compost costs Tk. 16. In comparison, Eco Grow Fertilizers
compost will not only be more balanced and nutrient-rich than the others, it will
also be sold at Tk. 10 per kg to the dealers from the initial year. A farmer can
purchase our product at a price 68% lower than a bag of chemical fertilizer.
Competition is a positive force in addressing Bangladesh's fertilizer shortage, but it
can also strain resources. Eco Grow Fertilizers has the edge of being a pioneer.
We'll prioritize strong customer and community relationships, product adaptation,
and a reliable raw material supply chain to stay ahead. Our mission isn't just about
business; it's about making a meaningful impact.

Future plan
After 5 years of production, Eco Grow Fertilizers plans to set up new plants in the
neighboring region of Kishorganj and Brahmanbaria, aiming to alleviate the local
demand of farmers in those regions. The company would then construct a
centralized laboratory where chemical constituency of each batch of fertilizer will
be tested. In addition, the company also intends to customize its product, using its
lab facilities, in respect to the requirements of different geographical regions.
Furthermore, to reach our customer base personally, we will develop our own
distributional channel. The dealers will be positioned at target oriented areas, with
the highest concentration of farmers.

Barriers to Entry
In general the barriers of entry to the bio fertilizers market are medium. They are
as follows:
1· Lack of smooth supply of raw materials
2· Traditional usage of cow dung
3· Existing dependency on chemical fertilizers
4· Creating new dealership for the distribution of the product

12 | P a g e
Competitive Edge (Unique Value Proposition)

(1) Balanced Macro-nutrients: Unlike fertilizers found in the current market, Eco
Grow Fertilizers Co. aims to provide its consumers with compost balanced in the
important macro-nutrients NPK. Usually fertilizers are disproportionately
balanced, for instance, with very high levels of nitrogen as opposed to containing
virtually no phosphorous. In conjunction, the average farmer also applies nutrients
to the soil disproportionately. In fact, of all the fertilizer used by farmers,
approximately 80 percent of it is nitrogen concentrated, with other nutrients in
minute portions. In reality, a balanced ratio of NPK is required for optimum yield
and soil fertility.

(2) Soil Enrichner: The driving force behind the recent emphasis on organic
farming is the rapidly declining soil fertility. A recent study by BRRI (Bangladesh
Rice Research Institute) indicates that yield of Iri rice per hectare has diminished
by 28 percent over the last 10 years indicating the degradation effect of chemical
fertilizers. Before the advent of intensive agriculture, farmers would spread farm
waste on fields and leave the land fallow for a few months. Now with increasing
demand for food, fields are cropped and harvested all year round. Chemical
fertilizers are heavily used to for plant nutrients, but these fertilizers leave a residue
in the soil which in turn destroys soil texture. Our survey revealed that 55 percent
farmers are aware of the harmful effect of chemical fertilizers. The minimum
requirement of organic material in soil is 2.5 percent, but in most parts of
Bangladesh, it is below . In contrast, Zed Fertilizers’ compost acts both as plant
food and as a soil enricher.

13 | P a g e
Marketing Strategy

The company’s marketing plan is divided into 2 different phases:

Phase 1 (First Six Months): To introduce the product and spread awareness among
customers, the company will collaborate with the local Imam Proshikhon Kendro.
These centers train Imams (religious clerics) on 6 different social issues, including
agriculture and health. Imams are on the zenith of the rural social hierarchy. Thus,
educating Imams on the benefits of organic fertilizer and IPNM will spread
awareness among farmers. Another major component of Phase 1 is Jatra. Jatra
Pala is one of the oldest and popular forms of entertainment for villagers. The
company will arrange Jatra shows periodically, promoting organic farming through
customized plots.
Phase 2 (Six months onwards): After Phase 1, the company will enhance its
promotional campaign. It will target seasonal fairs where puppet shows and other
recreational activities will be organized, each designed to promote IPNM. This
would act as an effective tool for educating people about the importance of using
organic fertilizer. Also, the company will extend its reach to the media, contacting
‘Hredoye Mati o Manush’, a popular agriculture based program. A meeting with
Mr. Sheikh Shiraz has been held, who has expressed his genuine interest
concerning our product. An appearance on the show will boost publicity for our
product.

Branding Strategy
At its initial stage, field workers will be sent to local farmers to discuss current
agricultural practices. These field workers will distribute free samples of our
product. Such an endeavor will instigate curiosity among other farmers. Also those
selected farmers will act as brand ambassadors. This will be vital in creating a buzz
about the product. At the end of each year, the company will carry out a post
production survey to derive a clear picture of customer satisfaction. Such direct
interaction with farmers will prompt in them a “feeling of importance”.

14 | P a g e
Sales Strategy
Eco Grow Fertilizers Co. will take advantage of the established dealership channel.
Currently there are 4800 dealers countrywide each having 4 sub-dealers working
under them. A single sub-dealer in turn is responsible for a total of 900 farmers.
However, eventually the organization will start building its own dealership
network.

Operations
Three different types of raw materials are chosen, each containing a supplement of
one or two types of required nutrients. The entire operation is divided into the
following steps.
(1) Collection of raw materials: The three major components of the fertilizer:
water hyacinth, farmyard manure, and oilcake, are collected in the ratio 2:2:1.
Water hyacinth will be harvested from nearby water bodies in collaboration with
catfish farmers. Studies show that the breeding of catfish is facilitated in presence
of water hyacinth. Also, Eco Grow Fertilizers will collect hyacinth from local
ponds in the region. The next raw material, farmyard waste, will be bought from
local farmers at a pre-agreed rate of Tk. 2 per every 20 kg. Last but not least,
oilcake will also be purchased from local producers. Oilcake is the remaining
portions left after seed and nuts are crushed for their oil. These leftovers contain a
high concentration of nitrogen. Four different oilcakes will be used: linseed,
ground nut, mustard and sesame. Each has a different harvest period thus ensuring
constant supply around the year. After collection, raw materials are stored
separately in storage bins before they are taken into the primary production facility.

(2) Sorting and Shredding: The next step involves manual sorting of raw material
in order to remove any extraneous material before processing begins. The sorted
raw materials are then put to industrial shredders which will crush, tear and curl the
materials to increase surface area. Shredding significantly reduces production time
and thus increases the production capacity of the facility.

15 | P a g e
(3) Composting: Composting is the most crucial step of the entire process. It is
done in the trough house, in specially made composting pits, each having a
capacity up to 5000 kg. Approximately 5.5 tons of raw materials can be process at
a single time. Shredded raw materials are placed layer by layer in each pit, and
watered to keep ensure dampness. The accumulated biomass is then covered with
loosely sifted soil and opaque plastic sheets to speed up processing. Incubated
biomass is mixed thoroughly after 10 days to reduce temperature. After 15-20
days, manure is ready for drying and packing.

(4) Drying: The compost produced has a high water content, so is quite bulky.
Drying reduces the moisture content to about 5-7percent which makes the product
suitable for storage and transportation. Moisture reduction also gives the fertilizer a
reasonable shelf life. After drying the product is stored temporarily in storage bins.

(5) Packaging and Storage: The packaging will involve both labor and automated
machines. Fertilizer is packed in 50 kg PP/PE woven bags. Finished and packed
products are then stored in factory storehouses until they are distributed to the
dealers. Usually a stock of at least 400kg of packed fertilizer is stored to meet
sudden demand surges.

Resource Requirement

Personnel plan
Our operations at Eco Grow Fertilizers will rely on a substantial amount of labor.
From collecting raw materials to the entire production process, including sorting,
mixing, packaging, and more, it takes about 2,000 unskilled labor hours for a
single batch.
The best part is, these positions don't demand any formal education or prior
experience. We aim to provide job opportunities to the communities in the nearby
villages, contributing to local employment.
Additionally, we'll also need some temporary field workers for our initial
promotional efforts. We're not just about producing fertilizers; we're about
fostering economic growth and development in the areas we serve.

16 | P a g e
Management

Our management team at Eco Grow Fertilizers will be handpicked by the company
owners (partners). The organization will have a general manager overseeing two
key departments: operations and administration.
The operations manager will take charge of production, factory workers, and the
logistics for raw materials and finished goods.
On the other hand, the administration manager will handle accounts, procurement,
and marketing. We're building a dedicated team to ensure smooth operations and
growth.

Capital Investment
The start-up investment and capitalization for Eco Grow Fertilizers is summarized
below:
Start-up Investment TK
Start-up Expenses:
Construction 10,28,700
Promotional 27,000
Insurance 60,000
Legal 25,000
Total Start-up Expenses 11,40,700
Start-up Assets:
Long-term Assets 37,25,000
Cash Reserves 2,50,000
Office Equipment and Accessories 1,73,420
Total Start-up Assets 41,48,420
Total Start-up Investment 52,89,120

17 | P a g e
Outsourcing
Lab testing of nutrients in the product will be outsourced to BRRI’s sub-station in
Habiganj.

Action Plan

Funding: Eco Grow Fertilizers plans to utilize finance the initial investment with
57 percent debt capital and 43 percent equity capital. A 5-year long loan of Tk.
30,00,000 at an interest of 15% (compounded daily) will be taken from a bank. The
loan will be repaid in monthly installments.

Beginning operations: Harvesting of the major raw materials will commence at

least two months before the company starts its operations. The machinery needed
for the production process will be acquired through local agents six months prior to
production.

Technical Support (lab, expert advice): Before starting its operations, Eco Grow
Fertilizers will outsource technical support. The proper nutrient requirements for
the product and the balancing ratio of raw materials will be determined. Lab
assistance will be outsourced as per requirement.

Evaluation of weakness

(1) Eco Grow Fertilizers is deprived of the advantages of having its own dealership
network. Being a new entrant it has to use existing dealers for cost effectiveness
and legal hassles.
(2) Since the company is located in one of the least developed part of the country,
it may face problems with constant supply of electricity.
(3) Poultry manure is a rich source of nutrients. However, due to the recent Bird
Flu outbreak, the company will not be able to exploit this valuable resource.

18 | P a g e
Contingency Plan
Bangladesh has a good number of chemical fertilizer companies. However, there is
no firm manufacturing organic fertilizer as its core product. With the advent of Eco
Grow Fertilizers, this industry will start to thrive. To retain a good share of market,
we plan to customize our product according to the nutrient requirement of different
districts. To keep up with demand the company will use other water weeds and
organic waste as raw material.

Revenue Projections
The market survey has revealed enthusiasm for our product. Immense shortage of
fertilizers will ensure that the product is sold. The company will begin operations
by producing 350 tons of compost per year. The production will increase to 420,
455, 480 and finally to 500 tons (maximum capacity) by the fifth year. Increased
production is attributed to increased awareness and strengthened ties with raw
materials suppliers. The price per kg fertilizer will be 10tk from the first year. On
the 4th year of production, selling price will be increased to 12tk per kg.

19 | P a g e
Income Statement

The Income Statement below summarizes the profits and losses made during the
five year period. Though the first year experiences a Tk. 915,159 loss, the next
year show a profit of Tk. 548,661. This increases to Tk. 1,414,158 by the fifth
year.

Income Statement Year 1 Year 2 Year 3 Year 4 Year 5

Operating Revenue
Cost of Goods Sold
Gross Margin
Total Operating Expense
Income from Operations
Net Income Before Taxes
Less: Income Taxes (15
percent)
Net Profit
31,75,100 38,10,100 41,27,700 52,25,280 54,43,080
1,73,179 2,02,514 2,20,362 2,35,358 2,48,286
30,01,921 36,07,586 39,07,338 49,89,922 51,93,794
32,20,000 24,19,690 24,78,710 25,46,350 26,611,170
-2,18,079 11,87,896 14,28,628 24,43,572 25,82,624
-9,15,159 4,90,816 7,31,548 17,46,492 18,85,544
0 1,22,704 1,82,887 4,36,623 4,71,386
-9,15,159 3,68,112 5,48,661 13,09,869

20 | P a g e
Cash Flows

While projection of revenue and trends of profit and loss are important, it is also
vital to identify the cash flows of the operations. This can pinpoint time periods
when cash is short and small-scale loans will have to be made. In this case, cash
flows gradually increase over the five years.

Year 1 Year 2 Year 3 Year 4 Year 5

Cash Flows From
90,461 1,321,172 1,378,231 1,956,509 2,260,358
Operating activities
Cash Flows From
(49,27,120) 0 0 0 0
Investing activities
Cash Flows From
46,89,120 (6,00,000) (6,00,000) (6,00,000) (6,00,000)
Financing activities
Net Cash Increase (1,47,539) 7,21,172 7,78,231 13,56,509 16,60,358
Cash Balance 1,02,461 8,23,633 16,01,864 29,58,373 46,18,731

21 | P a g e
Balance Sheet

The balance sheet outlines all the assets, liabilities and equity. It gives a good
estimation of the firm’s current trends. Eco Grow Fertilizers assets and thus
subsequently owner equity and liabilities have increased substantially over the
years.

Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5

Assets:
Current Assets 10,20,511 16,75,723 24,87,872 40,33,373 57,31,011
Fixed Assets 34,42,500 31,60,000 25,95,000 20,30,000 14,65,000
Total Assets 44,63,011 48,35,723 50,82,872 60,63,373 71,96,011
Liabilities:
Current Liabilities 6,89,050 3,78,491 10,45,091 18,64,384 34,92,733
Long-term Liabilities 24,00,000 18,00,000 12,00,000 6,00,000 0
Total Liabilities 30,89,050 21,78,491 22,45,091 24,64,384 34,92,733
Owner’s Equity 13,73,961 26,57,232 28,37,781 35,98,989 37,03,278
Total Liabilities and Equity 44,63,011 48,35,723 50,82,872 60,63,373 71,96,011

22 | P a g e