Business Plan

Fish Farming
Team Members:
ARPIT SINGH- A01 SNEHA A02 KAPIL SHARMA-A05 SURBHI SHARMA-A06 SAIFI-A07 RAJINDER-A62 RAISA-A65

Peer Rating
ARPIT SINGH- A01 SNEHA A02 KAPIL SHARMA-A05 SURBHI SHARMA-A06 SAIFI-A07 RAJINDER-A62 RAISA-A65 8 8 8 8 8 8 8

Executive summary
 Company Name: (BFCL) Branchiae Fishing Corp. Ltd.  This business is about Fish Farming in Uttar Pradesh, Bihar, Jharkhand states with a huge scope of expansion in coming future.  Our initial market is central and eastern region of India.

Executive summary (Cont.)

 Our marketing and promotion strategy will help our business to grow at a higher speed.  Our organisation will have centralised decision making, so that it can be controlled easily.  Main source of fund for our business will be Banks loan and it will be utilized as per our Financial Plan.

Vision
We want to organize and integrate fishery business to a strong and reliable source of flourishing company, which gives the better product and services to customers.

Mission
 Branch out our business into new dimensions.  To formulate vertical and horizontal integration for process of organic and inorganic food products.  To provide better quality of organic and inorganic products with quality service.

Industry profile
A) Fishery is the cheaper industry obtained from natural sources. B) The average productivity from ponds at present is to the tune of 2160 kg/ha/year. C) Fisheries increased by 19 percent over that of 2004.

Industry profile (Cont.)

D) India has still not been able to tap even 30%
of the potential area for inland fish production. E) Future of fish production is very promising. F) Company goals are to expand the business into different tiers.

Objective of Company
A) Optimum utilization of the resources, human
capital. B) To manufacture inorganic products as well organic products, which can be preserve for longer period time. C) Integrations of all local producers of small scale which are already engaged in the same field.

Business strategy
A. We will establish our business as a brand and achieve top position in Central and Eastern India. B. Competitive strategy a) Cost leadership

Our Products
A. Indian Major Carp
Catla Rohu Mrigal Surface feeder Column feeder Bottom feeder

B. Exotic carps
Silver carp Grass carp Common carp Surface feeder Column feeder Bottom feeder

Company Strategy
A. Guaranties Fishes will be return back, if spoiled or wasted due to any reason in our side. Waste fishes will be repurchased at nominal rate from the customer. B. Description of product process a) Raw material Fingerlings, Feeds b) Costs 1000 fingerlings @ Rs. 400

Competitive Strategy
We will basically use Word-of-Mouth publicity as our competitive strategy.

Future product & Service offerings

A. Prawn Culture B. Individual Quick Freezing (IQF) Processing Unit C. Marine Fishery Production D. F3 Restaurant Fresh Fried Fish Retail Chain

Marketing strategy
A. Target market a) Central and eastern region of India. b) Business to Business selling. B. Better quality at nominal price. C. Market size and trends a) Since market in central and eastern region is large. b) Since last two decades market is growing at a slow pace, so there is large scope of expansion.

Advertising
A. Business Magazines and newspapers. B. On contract basis with our media partners. C. Our ads will be published every month in magazines and weekly in newspapers.

Marketing Plan
Fish Farming

Production Cycle

Market Segment
Geographic Target market-Our target markets are central and eastern region of India. i.eU.P, Bihar, Jharkhand Demographics Business to Business

Market Size and trends

Market size for fishery is very wide but till not more than 30% market has been tapped. Moderate-size fish of 1-2 kg Governmental regulation and control not exist Except for icing for transport, post-harvest processing is almost non-existent

SWOT
A. Strength Good human as well as technical skills. Fishery is the cheaper industry obtained from natural sources. B. Weakness No goodwill in market at initial stage. C. Opportunity Only 30% production is achieved in inland fish farming. Less manufacturing competitors in eastern India. D. Threat Local fishermen. Diseases to fishes.

Marketing strategy
Conversion of an ecological crisis into a market of scarce resources. As flood causes disaster we have planned to utilize that water for ponds and do the fish farming (Government River Integration Plan).

Marketing objective
Maintain positive, steady growth each month.

Focus to increase in new customers who could be turned into long-term customers.

Generate brand equity at the Farmer's Market as well as within the commercial industry market.

Positioning
We will position our self as: Flexible. High-quality producer. Reliable.

4 Ps of Marketing
PRODUCT PLACE PRICE PROMOTION

Product

Place
We have planned to set up our business in the central and eastern region of India, that is in the 3 major states U.P, Bihar and Jharkhand.

After expanding our business in different dimensions we will focus our target market in West Bengal also. We will open our F3 food chains in Bengal as well in other regions.

Price
Our pricing strategy will depend according to the species of fish. But our normal price is from Rs 30 to 45.

Promotion
We have decided to promote our business by giving the advertisement in Business Magazines Advertisements in the magazine are estimated to be Rs 1,26,430.00/Year. Note: This estimate is for a full-page, black and white ad. This is only an estimate. To place an ad, or receive more information on advertising rates, please contact Biz India at (0732) 651-0797. Newspapers- The Economic Times Colour Ad- (Basic Rate : Rs. 3015 /sq cm) B/W Ad- (Basic Rate : Rs. 2800 /sq cm) Our ads will be published every month in magazines and weekly in newspapers.

Distribution Channel
Suppliers of Fingerlings Chand Fish Seed Company Year of Establishment: 1985 Mr. Sheikh Reyaz 57 Grand Trunk Road North Howrah, West Bengal, India - 711 101 Telephone: +91-33-26373239 Mobile / Cell Phone: +91-9903459651 Orders will be delivered within 10 days

Distribution Channel (cont)

Suppliers of Fish Feeds Will be purchase fish feeds from local market, which will reduce our cost of production.

Distribution Channel (cont)

The market for catla is mainly local, generally sold fresh. Transported to nearby urban markets with ice in rectangular plastic crates (usually 60 cm x 40 cm x 23 cm in size). Fish will also be transported in insulated vans with ice to fish-deficit areas of even 2,000-3,000 km distance from the production site.

Our Competitors
Garden Products (international) Business Type : Manufacturer / Exporters Address: 26,Hindusthan Park, 700 029, India, Kolkata, West Bengal India Digha Seafood Exports Business Type : Manufacturer / Exporters / Wholesale Suppliers Address: 20/1, Camac Street, Kolkata, West Bengal India Etc

HR & Operational Plan

Fish Farming

Personnel
on field

OFFICE STAFF to be recruited 1 Manager 1 Supervisor 2 Marketing managers 1 Staff 1 Accountant

FIELD STAFF 6 Staff members

Personnel Cont
CONTRACT STAFF 1 Doctor

Vendors

JOB DISCRIPTION
MANAGER- Manager is recruited to manage all the activities of the business and to make the work done through its staff. SUPERVISOR- Supervisor is hired to supervise the staff and monitor their work . MARKETING MANAGER- He will go to our business buyers as well as to the prospective customers.

JOB DISCRIPTION (Cont)

ACCOUNTANT- Accountant is recruited to handle all the financial transactions of the fish business. His duty is to manage the outflow and inflow of money. DOCTOR- The NABARD bank has provided the doctor for the regular checkup of the fishes we need not to recruit the doctor because he will come fortnightly so he would be paid on contract basis.

JOB DISCRIPTION (Cont)

STAFF MEMBERS cum FISHERMEN- Their work is to look after the fishes and take care of their safety and timely provide them their feed and also look after the cleanliness of the ponds. They will catch fish too.

RECRUITMENT AND SELECTION PROCESS

INVITING APPLICANTS
We will give the advertisement of job vacancy in the news paper, internet etc to invite the pool of applicants for the jobs vacancy. We will trace the capable applicants required by evaluating them on the basis of their job specification. i.e- qualification, experience The capable applicants will be selected and will be hired for the vacant place

SELECTION PROCESS
After the eligible applicants are traced out then they will have to go through from the interview .

On the basis of interview the eligible candidate will be hired . The right person will be hired for the right job .

Permanent Pay Schedule

Job Title Duties Qualification Salary (Rs) Analysing and recording Intermediate passed and accounting data, prepare certification in Tally 7.2 bills or above versions Supervise the offical staff Graduation in any as well field staff and descipline record the details Veriable Pay Schedule (A) Job Title worker worker worker worker worker worker worker worker worker worker Total Monthly Wages Total Monthly Salary Total monthly payroll tax 15% (annually) Gross Monthly Expense on Salaries (B) Wage Rate 25 25 25 25 25 25 25 25 25 25 (C) Hours / Week 6 6 6 6 6 6 6 6 6 6 (D) Weekly wages (B)* ( C) 150 150 150 150 150 150 150 150 150 150 (E) Monthly wages (D)*4 600 600 600 600 600 600 600 600 600 600 3,000 10,000 125 13,125

Accountant

4,000

Supervisor

6,000

Insurance Needs
The insurance plan are Worker compensation Fire or structure damage Loss & theft of building contents

BUSINESS OPERATIONS

Financial Plan
Fish Farming

Fish Farm Establishment Cost

Item
Land ( 1 hectare @ Rs 3,00,000 ) Pond Construction Water Supply Road work Feed Storage Bin Office Building Electric Line Harvesting Dock

Source
Personal Personal Personal Personal Bank Loan Bank Loan Personal Bank Loan

Cost
3,00,000 50,000 30,000 40,000 20,000 2,50,000 20,000 50,000

Total Fish-Farm establishment Cost (excluding worker)

7,50,000

Equipment & Tool Cost

Equipment and Tool Worksheet

Item

Sources

Cost

Boat, motor and trailor

Bank loan

1,00,000

Generator

Personal

25,000

Water quality test kit

Bank loan

15,000

Office equipment

Personal

10,000

Total equipment cost

1,50,000

Operating Cost
Monthly & Annually Operating Cost
Item Accounting & Legal Services Chemicals Employee Salaries/wages+tax Insurance Taxes Travel Utilities & Telephone Misc Fish Feeds Medicated Feed Fingerlings Montly 1000 200 13,125 1500 250 1000 4,000 4,167 3,000 2,000 1,200 Annually 12000 2400 157500 18000 3,000 12000 48000 50000.04 36000 24000 14400

Total

30,042

3,77,300

Sources & Uses of Funds

Sources & Uses of Funds
Uses of funds Fish Farming Establishment Cost Equipment & Tool Cost Operating Cost 7,50,000 1,50,000 3,77,300

Total Uses of Funds

12,77,300

Sources of Funds Equity Investment Financing Required 5,77,300 7,00,000

Total Sources of Funds

12,77,300

CASH FLOW
As our breeding stock mature and our reputation becomes known the business will experience increased cash flows.

PROJECTED PROFIT & LOSS

We expect a high degree of profitability from this venture do to high margins and inventory turnover inherent to the industry. Following are the graphs to show the projected profit and loss of the company.

Break Even Point

In the first year of operations, monthly expenses are projected to include interest expenses on initial borrowing. The break-even chart shows how much to be sold each month to cover all variable and fixed costs. BEP would be achieved in 7 months. Total Fixed Cost = Rs 10,42,500 Variable Cost = Rs 2,34,800