EB 3201 Project Analysis

Processing & Marketing of Maldive Fish

Group 21

Introduction
Maldive fish (Umbalakada) - Cooked smoked & hard dried tuna meat Ceylon Maldive fish Company, Kalpitiya Small scale level Products:
-Maldive fish pieces & chips -Raw material for animal feed

Project period: 2013 2017 (5 Years)

Objectives
Main objective: To reveal the feasibility & sustainability of the

investment on a Maldive fish processing unit

To identify the marketing, management, technical, social and financial feasibilities

To develop a feasible and sustainable business model for efficient

and productive operation To achieve 110,000kg of high quality Maldive fish production and

Rs.000,000 sales within 1 year of operation

To focus on constantly increasing the profit level from Rs. 000,000,000 to Rs. 000,000,000 from year 1 to year 5
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Project Rationale - SWOT Analysis

Strengths
Following B.Sc. Degree in Food Science & Technology Essential food ingredients with no substitute 1st local small scale Maldive fish Production Company Key raw materials, man power & infrastructure facilities are readily available Easy production process & high shelf life

Weaknesses Insufficient financial strength to initiate the project less experience in practically engaging in business

SWOT
Opportunities

Steadily increasing demand

Negligible local Maldive fish production Significant untapped demand for quality Maldive fish in the domestic markets High price of imported Maldive fish (8,000 MT - Rs.14 million) Government incentives

Threats Possibility of emerging new competitors Off season - Low fish availability Natural disasters - Tsunami

SWOT Analysis - Conclusion

Strengths & Opportunities >>>>Weaknesses & Threats

Feasible & successful business project

Aspects of Project Preparation &

Analysis

Technical Aspects
Factory Location & Layout Drying Unit Smoke Unit Machinery & Equipment Maintenance & Repair Cleaning Mechanism & Pest control

Raw materials & production process

Waste Management Process Quality Control
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Factory Location & Layout

Land Coastal area Kalpitiya 50 perches Rs.20,000/= per perche Estimated building Cost Rs. 2,650,000/=

Canteen
3.5m 2.5m

Solar Drying Unit

12m 7.5m

Smoking unit
7.5m 4.5m

Store room Vehicles parking

4.5m 3.5m

Packaging room 12m 4m

3m 2.5m

Cooking room
6m 4m

Packing material storage 3m 2.5m

Final product store room 6m 4.5m

Quality control room 3m 2m

Fish processing room

6m 4m

Office
6m 3.5m Wash room 2m 1.5m Open veranda 6m 1.5m

Cold Storage
3.5m 3.5m

Raw Material Storage 3.5m 2.5m

Security Office 2.5m 2m

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Drying Unit
Conditions Temp. 40 51 C RH 64 -70 % Capacity 900 1100 kg/batch Construction cost

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Smoking Unit
Conditions Construction cost

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Machinery & Equipment

Machinery Electronic scale Digital compact scale Small food crusher Sealing machine Deep freezer Quantity Required 02 02 01 02 02 Price/Unit (Rs.) 19,500 3,200 13,000 4,900 92,000

Equipment & Furniture

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Maintenance & Repair

Locally hired technicians Cleaning Mechanism & Pest Control Carried out on regular basis Use standard chemicals, fly traps

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Raw Materials & Production Process

Frigate tuna 1500 kg /day (Rs. 220/kg)

Crystal Salt 75 kg /day (Rs. 40/kg)

Garcenia 1 kg /day (Rs. 300/kg)

Cooking ( 45 mins ) Drying & Smoking

Yield: 375 kg Maldive fish/day (Assumption: 75% wt loss)

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Waste Management Process

Solid waste Heads, gills, fins etc.

Waste water

25% of fish weight

Filter - Sand bed Fresh wt - 375 kg/day Dry wt - 94 kg

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Raw Material Control

Quality Control
Final Product Control Process Control

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Social & Legal Aspects

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Social & Environment Issues

Environmental friendly Avoid encountering social related problems

Legal Issues
Company name registration - Ceylon Maldive Fish

Company Ltd
Brand name - Janatha

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Institutional Organizational Aspects

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Mission To
be the leader in processing and marketing best quality Maldive fish products in Sri Lanka contributing to fulfillment of Maldive fish needs of the country by way of extracting best resources from nature using modern technology and improved productivity

Vision To
be the leader in our chosen field in the Maldive fish industry in Sri Lanka

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Organizational Structure
Plant Manager (Rs.32,000)

Supervisor (Rs.26,000)

Accountant (Rs.26,000)

Sales Promoter (Rs.18,000) Security (No.2) (Rs.18,000) Multi-duty Clerk (Rs.12,000)

Driver (Rs.18,000) Male Workers (No. 10) (Rs.16,500) Female Workers (No.15) (Rs.15,500)

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Commercial Aspects

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Competitor Analysis
Distribute - Retailers Low income earners Maldive fish without package Supermarkets High income earners Maldive fish pieces, chips package & Value added products (Minara, MD, Maccurry)

Poor quality

Good quality MF pieces Rs. 235/100g MF chips Rs. 285/100g MF chips bottles Rs.660

High Price (Rs.2000/kg)

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Monthly Production 9000 kg

60% (5400kg)Bulk package in 25 kg cartons
30% (2700kg) 100g pieces package in food grade PP bags

10% (900kg) 100g chips package in food grade PP bags

216 units- Rs.48,000/unit Wholesalers in North western Mainly target low income earners

27,000 units- Rs. 235/unit Wholesalers & Supermarkets in North western Mainly target middle income earners

9,000 units- Rs. 245/unit Supermarkets in North western Mainly target high income earners
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Dried fish: 2250 kg Package in 50kg fiber sacks (Rs. 50/ unit)

Financial Analysis

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Financial Assumption

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Financing Plan
Financing Plan: Owners Contribution: 24,247,000 (38%) Loan Request: 40,000,000 (62%)

Proposed Loan Terms: (I) The Loan Shall Be Repaid In 3 Years And Shall attract An Interest Of 20% Per Annum (II) Moratorium Shall Be 5 Months

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 NPV B/C IRR

Ceylon Maldive fish Production Company is worth to establish

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Conclusions
Ceylon Maldive Fish Production Company Technically feasible Socially acceptable Economically viable Huge potential to achieve success

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Future Plans
Expand the Maldive fish production by 10% in same plant or construct another one in Trincomalee Establish our own distribution channel Develop value added products Maldive fish sambol & engage in export

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Thank you
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