Introduction

Fisheries in India
India stands third in fisheries and second in aquaculture. Most of India's
fish exports have gone to Japan closely followed by United Arab Emirates,
U.S.A. and European Union. The import situation is radically different.
Initially, India was a country where no imports were allowed. But once
the borders were opened, imports quickly increased, though the import
level is still very low. India's main import is fishmeal. Another product
imported is Hilsa especially from Bangladesh.

With a coastline of over 8,118 km, and an exclusive economic zone (EEZ)
of over 2 million sq km, India has a significant marine fisheries sector that
has long been an important source of occupation and livelihood for the
coastal communities of the country. It is estimated that at least 3 million
people derive their livelihood from marine capture fisheries in the over
3,600 fishing villages situated along the Indian coastline.

Fish and fish products have presently emerged as the largest group in
agricultural exports of India, with 5.2 lakh tonne in terms of quantity and
Rs. 7,300 crores in value.
This accounts for around 3% of the total exports of the country and nearly
20% of the agricultural exports. More than 50 different types of fish and
shellfish products are exported to 75 countries around the world.

Fisheries in Goa
The State of Goa has a coastline of about 104 kms with 250 kms as
waterways. The coast is full of creeks and estuaries and seven major rivers
meet the sea and these provide excellent nurseries for major fishes.

C u o n t a b o n d F i s h e r i e s
According to the statistics provided by the Directorate of Fisheries, Govt.
of Goa, 350 fishing vessels are operating from Malim landing center, 75
vessels from Chapora, 20 from Keri-Pernem, 30 vessels from Cortalium
fishing harbour, 270 fishing vessels are operating from Cutbona, 30 from
Betul and 235 vessels from Vasco fishing harbour. This shows that
fishing is one of the major occupation in Goa.

Apart from fishing, Goa also exhibits immense growth for fish processing
plants which is evident from the fact that the processing plants having a
capacity of about 250 tonne per day are not only buying fish caught by
Goan fishermen but also from other neighboring states like Karnataka
and Maharastra due to its vicinity.

As per the statistics provided by the Department of Fisheries, Government

of Goa, the total landings of fish at various centers in Goa is more than
1,00,000 tonne annually. The major landing centers are Malim, Cutbona
and Vasco. These catches have to be marketed in Goa as well as in the
markets of neighboring States. The processing and freezing/exporting
units in Goa processes and exports around 20,000 tonne per annum. The
remaining catch has to be marketed locally and to the neighboring States.
The only wholesale fish market in Goa is in the Commercial capital of Goa
i.e. Margao (Madgaon). This wholesale fish market is the only marketing
outlet that fishermen from Goa have to utilise to market their fish caught
from their boats and landed at the fishing harbours in Goa. Due to the
large presence of fish merchants in the wholesale market, fish is procured
from the neighboring State. During the monsoon, the fish merchants
procure fish from the country’s east coast, particularly Andhra Pradesh
and Tamil Nadu in view of ban on fishing along the entire west coast.

C u o n t a b o n d F i s h e r i e s
According to the statistics provided by the Fisheries Department, in 42
fishing (marine) villages of Goa, the total fishermen population is 30,225;
out of which 11,944 are active fishermen. The traditional sector contributes
around 35% of the total fish landings. As mechanization in fishing reached
a critical level by 1975, it adversely affected the livelihoods and fishing
grounds of the artisanal or fishing communities. There are 2500 country
crafts operating in Goan waters out of which 1100 are motorized vessels.
There are a number of smaller vessels operating (50%) also. The potential
for Goan waters for fish catch is immense. The actual fishing is more than
100,000 metric tonnes.

Other details and statistics w.r.t. Fishing in Goa

Landing of fish in each major landing center in Goa per day - 100
tonne

Margao is the only wholesale market in Goa. It can handle about 50
tonne of chilled fish each day.

There are about nine fish processing and export unit with a
combined freezing capacity of about 250 tonne per day. The export
figure as per MPEDA statistics, for the year 2008-09 show that a
quantity of 21,146 tonne of marine products have been exported by
Goan Exporters from Goa Port. Out of the total landings of fish in
Goa this accounts to only about 20%(if we presume that the entire
export from Goa are from the catches landed in Goa, which is not
the fact).

C u o n t a b o n d F i s h e r i e s
Exports of Fish and Fish Products from Goa Port:

PORT Share % 2007-08 2008-09 Growth%

GOA Qty in Tonne 3.51 19297 21146 9.58
Value Rs Crore 2.15 111.22 185.16 66.48
Value USD mn 2.20 27.80 42.04 51.24

Fisheries & Cold Storage – Opportunities in India

Cold storage plays a major role in fisheries industry as it ensures that the
perishable products are properly delivered to the end user. According to
one estimate, the country accounts for nearly 10% to 13% of world
production of fish, but experiences 25% to 40% of its production wasted
due to lack of proper cold chain storage, handling and logistics.

The estimated size of Indian cold storage industry is estimated at present

at Rs 80 to Rs 100 billion. This industry is likely to grow at 7% PA for the
next five years. At present, it is largely fragmented and unorganized. The
share of organized sector in logistics and supply chain forms only about
20% to 30% of the sector.

As per the Confederation of Indian Industry reports , India’s cold chain

infrastructure will require an investment of Rs 180 to Rs 200 billion in the
next five year to meet the overall requirement. It is estimated that the
Indian cold chain industry will grow to Rs. 400 billion by the year 2015.

About 30% of marine fish and fish products in India get wasted annually
due lack of awareness about proper handling and storage requirements as
well as poor infrastructure, insufficient cold storage capacity,

C u o n t a b o n d F i s h e r i e s
unavailability of cold storages in close proximity, poor transportation
infrastructure, etc. It is believed that India will witness a high growth in
cold storage industry in the years to come.

Opportunities in Goa and Objective of the Firm

Fishermen in Goa are not rewarded properly for their catch. The
markets at one side and exporters at the other, take advantage of
the situation and fishermen are not even paid a reasonable price. In
many situations, due to inability of the markets and processing
units to lift and procure the fish, the same has to be sold for
producing dried/salted fish, thereby washing away all the profits
of fishermen. Sometimes the same has to be sent to the fish meal
factory for a price which is less than one fourth.

There are considerable bigger fish markets and fish exporters with
larger capacity of storage in neighboring states of Goa i.e.
Karnataka and Kerala on the Southern side and Maharastra and
Gujarat on the Northern side. The per capita fish consumption in
Karnataka and Kerala is high as compared to Goa. Chilled fish
(properly stored and transported) which is fresh and wholesome
can fetch a very high price in these neighboring States.

The fish catch landed by the boats in and around Goa are marketed
within the State. There are only a few fish exporters in Goa and
their fish handling/processing/freezing and frozen storage
capacity are considerably small. Exporters from Goa are not in a
position to procure the entire fish catch brought from the trawlers.

C u o n t a b o n d F i s h e r i e s

Fish markets in Goa both wholesale and retail does not have the
capacity to lift considerably large quantity of fish.

There is acute shortage of insulated/refrigerated carrier for

transportation of chilled fish.

Cold chains and ice plants are essential for storage and distribution of
perishable goods (fish and fish products) and forms an integral part of the
supply chain. It is clear from the above points that the present capacity in
Goa is grossly inadequate and with a positive future outlook for the cold
storage industries, there is an urgent need to scale up and develop cold
storage across Goa. Identifying great potential in cold storage industry
especially in refrigerated and insulated carrier, Cuontabond Fisheries,
Velim , Margao wishes to carry on the business of Refrigerated Carriers
with a fleet of five PUF Insulated Container to cater to the local needs in
and around Goa.

C u o n t a b o n d F i s h e r i e s
The Business Model
The firm is promoted by two fishermen and is based in Margao, Goa. The
Partners of the firm own deep sea trawlers. These trawlers operate from
Cuontabond, Goa. Each trawler brings fish catch ranging from 5 tonne to
10 tonne during each voyage. Apart from their own fish catches, the firm
intends to purchase/procure fresh fish from the fishermen at landing
centers by paying them competitive prices. The partners propose to in
turn sell the catches not only in Goa but also in neighboring States. They
are also exploring the possibilities of exporting the same to other
countries.

This proposal requires a fleet of insulated /refrigerated carriers. Due to

shortage of refrigerated carriers, the same are not available during the
fishing season. Refrigerated carriers are generally owned by the fish
merchants/commission agents/traders. They will not lease their carriers
to others as they will require for their own business. With this objective in
mind the firm has decided to invest in refrigerated carriers by investing
Rupees Twenty Eight Lakhs and Fifty Thousand from its own funds and
Rupees Forty Seven Lakhs and Fifty Thousand from Central Government
as a Grant in Aid (Subsidy) under Centrally Sponsored Scheme on
Development of Marine Fisheries, Infrastructure and Post Harvest
Operations. Further, the partners also intend to secure a term loan of
Rupees Ninteen Lakhs to finance the project.

C u o n t a b o n d F i s h e r i e s
Start-up Summary / Cost of Project
The Partners of Cuontabond Fisheries have estimated that the project will
require an investment of Rupees Ninety Five Lakhs. As discussed earlier,
part of the funds will be invested from own funds to the extent of Rupees
Twenty Eight Lakhs and Fifty Thousand and the balance of investment
will be funded through Grant in Aid (Subsidy) obtained from
Government of India, Ministry of Fisheries and Term Loan.

Amount in Lakhs

Source of Finance Amount Project Investments Amount

Own Funds 28.50 Refrigerated Carriers 95.00

PUF Insulated Container

Grant in Aid 47.50

Term Loan 19.00

95.00 95.00

C u o n t a b o n d F i s h e r i e s
Ownership / Partners
Cuontabond Fisheries is promoted by two partners having vast expertise
in fishing industry namely,

Mr. Mingel Rodrigies

Mr. Anthony Rodrigies
Both the promoters hail from Velim, Margao and are into fisheries related
business from the last decade. Apart from fisheries, they have presence in
hotel industry in Goa (hospitality) and are actively involved in politics.

The Partners have decided to hire a team of professionals to manage the

business in an organized manner. They have resolved to carry on the
business ethically at the same time delivering sufficient returns for the
amount invested into this project.

C u o n t a b o n d F i s h e r i e s
Implementation Guide
Once the Project Framework has been made, its implementation holds a
key. This involves the activities involved, the time frame, scheduling and
actual implementation. It’s very important firstly, to define the activities
involved and then prepare the scheduling for the actual implementation
accordingly.

Activities involved
The implementation strategy for the project involves three types of
activities:

Negotiating and buying the refrigerated carriers

Installation of PUF insulated container, temperature controlled,
GRP cladded floor in the carriers.

Developing the commercial facilities for marketing

Development of organization and the systems.

The implementation of the project would be taken by a separate group

formed by the Partners of Cuontabond Fisheries after taking decision on
the investment, organisation structure and commitment of funds.

The above group will be responsible to

• Negotiating and Buying the Refrigerated Carriers
• Installation of PUF Insulated Container and other accessories in the
carriers.
• Obtain all approvals and clearances mentioned later in this report.
• Recruitment of Staff and Training
• Inaugurating the operations.
• Supervise the above activities

C u o n t a b o n d F i s h e r i e s
Financial Projections
Detailed financial projections for a period of 7 years are prepared to show
that the project of Refrigerated Carriers is viable. From the profitability
statement it is clear that the net profit ratio will increase from 1.40% in the
first year to 2.54% in the seventh year, which supports our assumption
that this venture is profitable.

The funds for the venture will be invested from own funds and a part of it
from Central Government as a Grant in Aid and Term Loan. As the debt
liability in the project is minimum (only 20%), the debt service ratio is
very high at 8.88 in the first year itself.

The projected financial statements displays a very good return i.e., return
on capital employed is 39% (average) making this project financially
viable.

C u o n t a b o n d F i s h e r i e s
Other Details

Operations
Each carrier will carry about 6 tonne of chilled fish along with 4/5 tonne
of ice. Each trip (to & fro) from landing center to market & back is
assumed to take 2 days.

Each insulated carrier will contain 200 plastic boxes. Chilled fish will
transported only in these plastic boxes. The capacity of each box is 50-55
kgs. In each box 30 kgs of fish will be packed along with 25-30 kgs of ice.
To preserve fish during transportation to far off destination, fish has to be
arranged with ice in equal proportion. Hence even though the carrying
capacity of each truck is 12 tonne the quantity of fish that can be
transported is only about 6 tonne. For a distance of more than 200kms fish
packing with adequate quantity of ice is very important to ensure good
quality and to fetch the best of the price to the fishermen at the
destination.

It is proposed to keep two refrigerated carrier at the landing center to

procure fish every day. Two other carriers will be traveling towards
market (destination) and one carrier will be maintained as stand by. In
this way, it is proposed that each carrier will complete 70 trips per annum.

Special Incentives
Government of India, Ministry of Agriculture, Department of Animal
Husbandary, Dairying & Fisheries has declared to offer grant in aid for
the units established for the development of fish processing, preservation,
storage infrastructures wide notification numbered F.No. 33015-3/2007
Fy(H). This scheme is a part of Eleventh Five Year Plan covering period

C u o n t a b o n d F i s h e r i e s
from 2007-08 to 2011-12. The Partners are positive that the above said
grant in aid will be available to their venture of Refrigerated Carriers to
the tune of Rupees Forty Seven Lakhs and Fifty Thouand as preservation
of fish and fish products and thus transporataion of fish and fish related
products is eligible for the said grant and they have decided to start this
project capacity from October 1, 2010 which is well before the financial
year 2011-12.

Refrigerated Carriers
It is proposed to purchase five refrigerated carriers (Ashok Leyland) with
PUF Insulated Container and Temperature Controlled and GRP cladded
floor. In this connection, they have obtained quotation from M/s Samarth
Motors Pvt Ltd and M/s Suraksha Transport Systems Pvt Ltd which are
enclosed with this report.

Man Power Required

The proposed project would require 3 personnel for administration that
will include a manager, an accountant and a clerical staff. Apart from this,
two drivers and a helper/cleaner for each carrier would be required.

Suggested Location
The Refrigerated Carrier would be based in Goa with permit to travel any
part of India.

Project Time Line

The proposed project will have cumulative implementation period of 3-4
months of which 2 months would be for obtaining the obligatory
clearances from various authorities.

C u o n t a b o n d F i s h e r i e s
Clearances & Approvals Required

Government of India, Ministry of Agriculture, Department of
Animal Husbandary, Dairying & Fisheries for Grant in Aid as per
notification numbered F.No. 33015-3/2007 Fy(H)

Though, cold storages/ carriers have now been freed from licensing
provision applicable earlier, but still the unit will have to get
registered itself as a small scale industry by filing Industrial
Entrepreneur’s Memorandum (IEM) with Secretariat of Industrial
Approvals, Ministry of Industries, Government of India, New
Delhi.

The process of cold storage includes no harmful effluents.
However, NOC may be taken from the concerned State Pollution
Control Board.

Note: Some facts and statistics stated above in this report are that of cold
chain and storage industries which includes refrigerated carrier in its
segment.

C u o n t a b o n d F i s h e r i e s
 CUONTABOND FISHERIES, Velim, Margao, Goa
Detailed Feasibility Project Report
1. Promoter with : M/s Cuontabond Fisheries , Velim ,
Address Margao, Goa

2. Constitution : Partnership Firm (Partners)

Mr. Mingel Rodrigies

Mr. Anthony Rodrigies

3. Promoters : Both partners have vast expertise in fish

Background and fish related business.

4. Particulars of the : The project envisages the viability of carrying

project on cold chain in the form of Refrigerated

Carriers in Goa. The proposed venture would
act as basic infrastructure ensuring good
preservation of fish catches for supply to
domestic and export market and facilitate the
fishermen to get reasonable price for their
catches.

5. Industry / Sector : S.S.I.

6. Project Investment : Project Cost Rs. 95.00 Lakhs

7. Marketing : The facility will be provided to local fishermen

to ensure that there is minimum loss due to
spoilage and wastage of fish catches.

C u o n t a b o n d F i s h e r i e s
Financial Highlights

I II III IV V VI VII
Year Year Year Year Year Year Year

Sales 1512 1814 2105 2462 2857 3314 3843

(Amt in
Lakhs)

Profit 21 32 41 53 66 80 98
(Amt in
Lakhs)

Profit 1.40% 1.76% 1.97% 2.15% 2.31% 2.43% 2.54%

Ratio

Debt Ser 8.88 10.86 12.58 14.82 17.49 20.52 24.22

Ratio

ROCE 46.13% 45.23% 41.20% 38.17% 35.58% 33.19% 31.30%

Return 39.16% 40.43% 38.28% 36.47% 34.69% 32.84% 31.30%

on Total
Funds

BEP as % 33.28% 28.76% 26.79% 24..83% 22.39% 20.80% 18.92%

of Sales

C u o n t a b o n d F i s h e r i e s