FINANCIAL ANALYSIS OF

ESTABLISHMENT OF SHRIMP/FISH PROCESSING PLANT

UNDER THE SCHEME

“SHRIMP FARMING CLUSTER DEVELOPMENT PROJECT”
IN PUNJAB
 SEQUENCE OF PRESENTATION
1. FEASIBILITY STUDY FOR SHRIMP/FISH PROCESSING PLANT
2. PROCESSING PLANT DESIGN
3. SHRIMP PROCESSING EQUIPMENT
4. FISH PROCESSING EQUIPMENT
5. COMMON EQUIPMENT FOR SHRIMP/FISH PROCESSING
6. PROJECT COST AND FINANCING
7. OPERATIONAL COST
8. SALIENT FEATURES OF FINANCIAL ANALYSIS
9. KEY ASSUMPTIONS
10. RECOMMENDATIONS / CONCLUSION
11. FOOD FOR THOUGHT
12. FISH/SHRIMP WASTE PROCESSING PLANT
 FEASIBILITY STUDY FOR SHRIMP/FISH PROCESSING PLANT
Survey, Analysis & Interviews

• Conducted field surveys & interviews at landing sites, cold storage facilities,
fish processing plants (in Muzaffargarh, Sargodha, Sunder Industrial Estate,
Lahore), fish markets, ice plants, etc.
• Fish farming in Punjab produced 120,000 metric tons of freshwater fish (2021)
• During the survey it was revealed that 50% of fish is consumed locally and the
balance 50% goes to waste due to the non-availability of cold chains/cold
storage.
• Based on this information, we were suggested by the farmers to establish one
processing plant at Southern Punjab and one at Central Punjab, to convert the
surplus fish to hygienic value-added items as per Global Standards.
 PROCESSING PLANT DESIGN

Processing Area = 20,000 ft2

Other Area = 18,000 ft2
Total Area = 38,000 ft2
 MACHINERY & EQUIPMENT
SHRIMP PROCESSING EQUIPMENT 1000 kg/hr
Auto shrimp washing system Conveyors
Manual shrimp washing system
Shrimp sorting /grading machine Working tables
Brine chilling ice soaking Packing tables
(Locally made tank)
Shrimp deheading machine Weighing Scales
Shrimp shell separator Misc items as per requirements
Shrimp peeler Waste collection trays, containers,
trollies etc
Shrimp deveiner Electric Panel
Meat cleaning machine
 FISH PROCESSING EQUIPMENT 1250 kg/hr
High-pressure auto fish washing system Sorting/grading machine
Manual fish washing system
Deheading machine Deveining machine
Deboning machine Definning machine
Meat cleaning machine Silcing machine
Deskinning Machine Conveyors
Descaling work bench Slicing tables
Dressing tables Misc item, as per requirements
Weighing bench Waste collection trays, containers
trollies etc
Weighing scales Electric Panel
 COMMON EQUIPMENT FOR SHRIMP/FISH PROCESSING

Ice-making machine (flake ice) 5 ton/hr Weighing bench

IQF Freezing unit 500 kg/hr capacity Electronic scales

Shrimp / fish glazing unit 500 kg/hr Packing work bench

Trollies/Racks etc Semi auto packing machine

Packing Line Binding machine

Conveyors Misc. items as per requirements

Metal control machine Electric panel

 PROJECT COST AND FINANCING
AMOUNT
PARTICULARS
(Rs. in million)
Land* (4 acre) Owner Land
Building & Infrastructure 255.000
PARTICULARS CONTRIBUTION (%) AMOUNT
(Rs. In million)
Plant and Machinery 381.000
Government Electrical Equipment 20.000
50% 350.000
Grant
Shareholder’s Solar Power System 30.000
50% 350.000
Equity Furniture and Fixtures 7.505
Total
Investment
700.000 Vehicles 4.495
Office Equipment 2.000
Note: Initial Working Capital 100.000
I. Initial Working Capital Not Included
II. Govt Grant Shall be 50% Total Project Cost (excluding Land) 800.000

*Land will be leased from Government

 OPERATIONAL COST

STATEMENT OF PROFIT & LOSS YEARLY OPEX COST

Amount Amount
Particulars Particulars
(Rs in million) (Rs in million)
Revenue Raw Shrimp Cost 1,612.800
4,438.800
1st year @ 60%
Raw Fish Cost 1,476.800
Cost of OPEX
3,374.744
1st year @ 60% Processing & Packing
90.200
Gross Profit Charges
1,064.060
1st year @ 60%
Salary/Wages 54.000
Utilities 87.300
Depreciation 53.644
Total Expenses 3,374.744
SALIENT FEATURES OF FINANCIAL ANALYSIS

Sr.No Particulars Value

1 Internal Rate of Return (IRR) 31.06%

2 Payback Period 1.10 Years

3 Net Present Value of the project (NPV) Rs. 2077.288 Million

4 Gross Profit on 1st Year @ 60% Rs 1064.060 Million

5 Gross Profit % on 1st Year @ 60% 24%

6 Return on Capital 70%

For Details, Refer attached comprehensive Financial Analysis

 KEY ASSUMPTIONS
Years 1 2 3 4 5 6 7 8 9
Capacity Utilization 60% 70% 80% 90% 100% 100% 100% 100% 100%
Shrimp @ 1000 kg/hr. 1×shift of 8 hrs. ……….Kgs in million……….
Total Processed (100%) 1,440 1,680 1,920 2,160 2,400 2,400 2,400 2,400 2,400
Value Addition (50%) 720 840 960 1,080 1,200 1,200 1,200 1,200 1,200
Wastage ( 50%) 720 840 960 1,080 1,200 1,200 1,200 1,200 1,200
Fresh Fish @ 1250 kg/hr. 2×shift of 16 hrs. ……….Kgs in million……….
Total Processed (100%) 3,600 4,200 4,800 5,400 6,000 6,000 6,000 6,000 6,000
Value Addition (40%) 1,440 1,680 1,920 2,160 2,400 2,400 2,400 2,400 2,400
Wastage ( 60%) 2,160 2,520 2,880 3,240 3,600 3,600 3,600 3,600 3,600
Sale Price ……….Rs./Kgs in million……..
Shrimp & Other 3,080 3,234 3,396 3,565 3,744 3,931 4,127 4,334 4,551
Fresh Water Fish 1,460 1,533 1,610 1,690 1,775 1,863 1,957 2,054 2,157
Waste of Shrimp & Fish 55 58 61 64 67 70 74 77 81
Purchase Price
Shrimp & Other 1,120 1,176 1,235 1,297 1,361 1,429 1,501 1,576 1,655
Fresh Water Fish 410 431 452 475 498 523 549 577 606
*5% increment in sale prices is assumed each year
 KEY ASSUMPTIONS
UTILITY EXPENSES
Particulars Quantity Amount (Rs. In ‘000’)
Solar System 300 kwh × 5 hrs / day × 300 days / yr Free of Cost
WAPDA 300 kwh × 17 hrs / day × Rs.50 / kwh × 300 days /yr 76,500,000
Genset 300 kwh × 2 hrs / day × Rs.60 /kwh × 300 days / yr 10,800,000
Water Water Pumping set will operate on solar during day time Free of Cost
Fuel N/A: Genset rate has been taken @ Rs.60 / KWH -----
Total 87,300,000
HUMAN RESOURCE REQUIREMENT
PARTICULARS QUANTITY
Administration Staff 20
Processing Staff 64

O & M Staff 19

Total 103
 RECOMMENDATIONS / CONCLUSION
Financial analysis indicates a successful venture with impressive indicators:
 Payback period: 1.10 years
 Internal Rate of Return (IRR): 31.06%
 Net Present Value (NPV): 2077.288 million
 Gross Profit (GP) 24%
Recommended to set up multiple processing plants and cold storage in suitable
locations across Punjab.
With strategic planning, best practices, and government support, Punjab can
emerge as a leading player in global fisheries and aquaculture markets.
Increased production, value addition, and export potential will contribute to
economic growth, job creation, and overall socio-economic development.
Lower electricity tariff for cost efficiency.
Conduct expert-led HR training
Establish progressive policies, regulations, sops etc. more farmer-friendly
 FOOD FOR THOUGHT
• The processing project appears to be financially feasible
and viable; however, following universal practices, requires
certain essential backup supports:
1.Fish Warehouses at Fish Farm Clusters:
 Maintain temperatures: 0⁰C to 4⁰C.
 Ensure proper storage conditions for harvested fish.
2.Smart Transportation System with Refrigerated
Vehicles:
 Maintain temperatures: 0⁰C to 4⁰C.
 Preserve fish quality during transportation.
• Emphasize the importance of backup support systems for
maintaining high-quality fish and shrimp processing.
• Ensure 100% bacteria/virus/disease-free products.
3.Shrimp/Fish Waste:
• Store at 0°C ~ 4°C.
• Better Install an Independent plant away from the
processing plant to get additional value addition/by-
products like fish oil, Omega-3, hygienic sterilized fish skin Shelf life of harvested fish: 15 days at 0⁰C,
for burnout cases, organic feed & others. 6 days at 5⁰C, 2 days at 15⁰C (ASHRAE).
 60% 100%
Shrimp Waste 720,000 kg 1,200,000 kg
Fish Waste 2,160,000 kg 3,600,000 kg
Total Waste 2,880,000 kg 4,800,000 kg

• Huge quantity of waste?

• How to handle it?
• How to make use of it?
• Must be stored and transported @ 0°C ~ 4°C
• Better install waste processing plant --- away from fish food

Needs a feasibility study for:

 Ware Houses at fish farm clusters
 Smart Transportation system from warehouses to
processing plants, fish markets, shopping malls, restaurants
& hotels and for waste transportation.
 Value addition of shrimp/fish waste.
 FISH/SHRIMP WASTE PROCESSING PLANT

Fish Waste

Crusher/Grinder

Reactor Heat + pH
Enzyme
Adjustment + Water

Bones Screen Centrifuge

Water Evaporator Stick water

Dryer Oil Separator

Hydrolysate
Bone Meal Fish Oil
(Protein)
Thank You