HSBC

View with images and charts Hsbc Bank Executive Summary Having cost leadership from producing both vegetable and fish on pond that is by saving land the firm is expected to come into operation from year 2010.The basic production procedure of the firm is cultivating vegetables on raft and growing fish in the same pond simultaneously. Principle office will be located in comilla sadar, which will control and disseminate organic fish tilapia, tomato and lettuce produced under firm’s innovative production method.

Presently our market is full of these products but all of them are costly, formalin used, chemically reaped and clinically equivalent to toxic. Our product will serve to those who want organic product having quality, differentiated test and with speed but at reasonable or somehow lower price.

Firm is willing to develop an organic brand which will be cheap and available at a time. But initially firm target customers are tomato sauce producers, supper shops and other restaurant.

After having economics of scale at a short period, firm will go for expansion.

No mention, as it is food market, it is large and will grow. Both traditional and organic producers are in the market, but firm’s innovative production procedure will make the firm different when cost is considered.

Innovative production procedure innovative labor management system, diversified marketing plan& development of organic brand will make us different from our competitors, substitutes and adjacent competitors. In contrast to all this, food processing firms and super shops will work as complementation and capability partners respectively. With complementary partner firm, we will go for future contract.

Among total Tk. 6050000 we seek Tk. 4050000 from debt sources which will allow us to take lease of 15 acres of pond area for 3 years uninterruptedly. Firm is considering redemption of debt after 3 years and then it will be an unlevered firm. But after 5 years firm will require debt to support its growth.

Firm’s current debt to equity ratio will be .67:.33. The firm is not going to pay any dividend until 4th year, to strength interest coverage ratio and also to build a strong equity base. In normal circumstances firm will have an NPV of Tk 4546485. Even in worst case firm has a positive NPV. The firm ensures payback of fund of within 2.5-3 years. Even threats are available from different sources this production procedure and products ensures a growing market.

Business Idea 1.1 Environmental analysis:

Agricultural sector and import by public & private sector are the only medium for our food supply & security. In Bangladesh, most of the farmers produce for their self-sustenance & market only the surplus production. Moreover population growth rate & declining rate of cultivable land is much higher than agricultural production growth rate.

The above situation leads us to initiate an agro-industry, which will ensure quality production for market in large scale & certainly ensure business. It is only recent, Bangladesh is experiencing it. Things are changing rapidly in Bangladesh. People are more concerned about the quality of the product, use of chemical in the product (especially formalin), color & toxic preservatives. People wish to have same product differently with speed, easiness & care.

Scarcity & costs of land has induced us to start a business that will produce organic fish & organic vegetable on same pond which is available in Bangladesh. We will ensure differentiated organic food which people can have with easiness & speed. Currently such demand is fulfilled only by the foreign suppliers which are imported mainly by various super shops. National organic producer are small in number. Cost leadership will help us to capture a large market share of the segment & also help us to grow.

1.2 Products & Services: We are offering products to the market associated with different services. Likei.

Organic bone-free processed Tilapia fish available on per kg box. ii.

Organic tomato iii.

Lettuce 1.3 Business Goals and Objectives Short term goals • Land savings by cultivating in water.

• To increase food supply • Providing organic food • Providing processed food • Year long supply of off-season food.

• Initiating ease & speed to the customer Long term Goals • To create and develop agro branding • Entering into Canned food industry.

• Franchising Market potential 2.1 Customer Demographics: Price risk is the main risk regarding our products. So we are very much willing to enter into future contract with our target customers. We are very much concerned that we do not have an established future market. But we may help to give it a formal shape.

Number 1 2 3

Products Fish / Telapiah: Tomato: Lettuce:

Target Customer Super shops Tomato sauce producer Fast food & super shops

The upper & upper middle class of the large town are going to be our final customer through some kind of intermediary who are our actual customer. The product which will be more/surplus considering the target demand will be available in the traditional local market.

Traditional market is full of products where chemical is extensively used. So being organic product we are going to have easy & large market share.

2.2 Competition & Competitive advantage: To the consumer level, in general, organic food are more costly than available food. But we are going to provide less or equal priced organic product depending on market demand because we have cost leadership for using an innovative method.

Our direct competitors are the producers of the same goods. The main benefit of the competitors is that the current market is totally under their control even though they are supplying chemical used costly product. As our customers are directly responsive to their customer’s demand that is they will demand our product only if their customer demand it. As we are providing less costly organic food, both direct & indirect customers are going to change their buying behavior. Organic food producers are also our competitor but not directly on the items, which we are going to produce.

Competitor’s Strength: • • • • • •

Current large market share Strong capital background Modern technology Diversified product Complaint handling Long time experience in the market

2.3 Pricing Strategy As already mentioned, tomatoes will be produced under contractual based financing /future contract basis. Future price will be selected in advance. For fish it will be cost based pricing, on the other hand it will be value based pricing for lettuce.

2.4 Advertising & Promotional Strategy: Current tomato sale does not need any advertisement. But for growth it is must. As the buyers are industrial, we will go for online services for providing sufficient information about us.

To ensure price insurance, marketing flexibility and also to set up barrier to new entry we are very much interested to enter into a future contract with the participants of our target customers. Future price will be set in advance considering the future market demand. Future contract will ensure high downward price protection, balanced profit opportunity and market flexibility.

2.5 SWOT Analysis:

1.

2.

3.

4.

5.

6.

Strength Organic Food Low price Irrigation cost saving.

Less threat of overall loss Smaller loss in case of malice One pond providing employment to one family

1.

2.

an

3.

4.

5.

6.

1.

2.

3.

4.

Opportunity High Demand Quick growth Exploit several local market Agro branding

1.

2.

3.

Weakness Less production Offering only three items of a large food market Less capital Unskilled labor Higher transportation cost & time consuming Weak monitoring Threat People’s attitude toward foreign food Inability to fulfill future contract.

Environmental vulnerability

Resource Requirement The main resource required for this business is pond. We will take lease of several ponds that constitutes 15 acres (total). It is not single one rather at least 45 ponds which are scattered over an area. Our concentration will be comilla, as business field, as we have found at least one pond is available with a house.

Initially we will take lease of those ponds for 3 years making rental payment at a time, it will ensure uninterrupted access to those ponds.

We are not willing to use any labor from outside market, rather we will create an opportunity to any of the co-owner of the pond who is willing to work.

Actually we are making a family employment opportunity as the pond is near home any member of the employed persons family can work. It can be his wife, son or he himself. It will help to create women employment in turn. Women are always welcome to work.

Moreover rather than wages they will be allowed a lump sum salary.

After pond preparation, approximately 600 raft, which are made of banana tree having a lair of soil, cow dung and water hyacinth will be placed on water covering 70% of the total pond area. 30% will be kept free to have easy access of sunlight in water. As we are covering 70% of the total pond area, we will cultivate tilapia fish in water, which is characterized by ability to survive in harsh condition, less sensitivity to sunlight and rapid growth. On the raft tomato will be produced which has a broader market over the year. Tomato requires 3 months to be marketable, whereas fish require 4 months . In the gap period we will produce lettuce on the raft and will have at least two production in a year; All maintenance liability goes to the employed family who will be trained and monitor by a group of supervisor, supervisor will be skilled one and getting authority and responsibility for a given area.

We will offer bone free sliced fish to our targets for this we will manage a building having both storage and premises facility. Freezer, furniture, computer and delivery van are the primary fixed asset required.

4.0 Implementation Plan The firm will start as an Pvt Ltd. Company, which reflects firms financial strengths and will also ensures tax exemption for five years. Registration from register of joint stock company will also allow firm different benefit allowed under act. Although target market is solely Dhaka based the full production process will be conducted in comilla due to its geographically and economical condition.

To reduce product loss risk firm ensures insurance of yearly payment of Tk 30000. Utility cost include security, power, water etc. Quality control will always be an issue as our total market solely depends on quality product.

Advantages • • • •

Disease may not be so widespread as area is scattered We can capture the market very quickly.

Agro branding Focused production

Raft preparation Vegetables will be produced on raft of which compost is an essential component.The compost is made up of azola, a good nitrogen-fixing plant & other readily available organic matter. It can also be made by decomposing water hyacinth, oil cake, treacle, husk & straw together. Organic compost like this can be made within 6-7 days. The advantage of using organic compost is neither does it make the water toxic nor does it harm the fish farming.

Seeds can then be sown. The technique used to improve the seed’s early development is to create round balls of compost comprising of decomposed water hyacinth and an organic fertilizer known locally as Tema. A couple of seeds are planted into each ball and kept in a shaded area while germination takes place. Once the seedlings have begun to grow they can be planted out onto the raft.

To protect the raft ducks, rats and other animals fencing can be set up around the perimeter of the raft using broken fishing nets or sticks as effective barriers.

Although rafts will not last indefinitely they can be reused and hauled to a shadier or sunnier spot.

4.2 Vegetable cultivation Leafy or juicy vegetables can easily be cultivated on rafts throughout the year. The cool climate on the pond ensures off-seasonal production & it is appropriate for production of tomatoes. In our dual production, we are opting for cultivating tomatoes and lettuce on the raft on 70% area of the pond.

Seedlings can be sown directly onto the raft or else it can be planted into round balls of Tema and put in a shaded area. Afterwards they can be planted onto the raft. The tomatoes can be wrapped up with small poly bags when it grows to prevent it from pest attacks.

There is no extra hassle of irrigation as little water is needed in case of raft plantation. The banana rafts keep the soil moist. In circumstances (in summer or in hot weather) water can be spread manually with porous water pot. The raft can be accessed on foot. In case of deep

water it can be reached by using a raft or a boat. No vegetable production will take place in heavy rain period.

We can get the first production of 24 tons of tomato from one hectare within 75-90 days after plantation. We will not use any harmful pesticides as it can be harmful for fish farming.

Instead of pesticides we will use natural biological terms to prevent plants from insects (light bulbs or weeding).

4.3 Hatchery After pond preparation, young Tilapias can be freed into the pond. The appropriate proportion will be to free 3000 fish fries in an acre. Fish food can be provided once every day. Handmade fish-food can also be made with husk, oil-cake, bran & treacle together. It needs to be assured that the fish are always free from disease or insects. Bamboo shoots or bamboo sticks (1 inch wide) can be dug down 1 feet to the water ground. This will help to keep the fish free from insects naturally when it moves under water. We can get the first production after 4 months. But for better growth of the fish we can collect about 450 fishes after 2 months. Cross seasonal nursing can be executed in case of fish farming.

4.4 Process 4.4.1 Fish food Usually bran, husk, oil-cake, cow-dung, treacle are used as organic fish food. Fertilizers are spread in the pond for preparation as it creates a layer on the soil which is a good food for fish. Cow-dung & other organic composts can also be used for the vegetables as cow-dung which is a very favorite food for fish. Food can be provided by spreading or pierced packs set by the sides of the pond.

4.4.2 Fertilizers Water-hyacinth, treacle, husk, hay (cut into pieces) can be used as organic fertilizers. The contents can be mixed all together & put under earth for (6-7) days. Afterwards it can be retrieved from underneath.

4.4.3 Irrigation If the prodcution is done on the raft which floats on a surface of water then there is no need for additional water irrigation. Because the raft uses banana tree which is such a media that is itself moist & also water-absorbing. So it will itself absorb water from the pond's upper surface. If additional water is needed then it can be provided manually. Porous water pots can also be used if necessary.

4.4.4Care & maintenance Bamboo shoots or bamboo sticks can be used as a natural way to protect fish from insect attacks. 1 inch of the stick can be put underground & 1 inch should be kept above the surface (6 ft stick needed for a 4 ft water surface).Insects on the fish body automatically fall off while the fish moves under water.

5.0 Risk Assessment In our country agricultural product suffer from two sources of risk. One is product destruction and another is price detoriation in value from 1)Quality detoriation

1

Risk Theft

Risk Management Providing the maintenance to the families who are the owner of the ponds.

2

High maintenance cost

Covered by high production

3 4

Transportation Production hamper in rains

5 6

Prodcut distruction Price fall

Serving diversified market Allocating the time for pond preparation Arranging future contracts Arranging future contracts

2)Price variation due to changing consumer preferences, supply condition and general business condition.

3)Demand risk:Demand for organic food may not be as high as we expected.

4)Economical risk: The project are based on the current market trends. Change in economic pattern may include substantial change in the projects.

5)Implementation Risk: The implementation of plan consists of the combined production of both fish and vegetables. In this situation high care must be taken, if it is not taken properly the firm may not prform at optimal lavel.

1.12

Financial Plan

We consider our debt to equity ratio as .67:.33. We will collect taka 4050000 from banking and non banking financial institutions. Where our initial cash requirement is 6050000. The rest will be supplied by the director of the firm in an equal proportion. Directors will be entitled equal dividend considering their share.

Taka 4050000 will be paid to the pond owner’s at a time at the beginning of the year. This method will help us to have an uninterrupted access on the property for 3 years. The equity fund will be used to purchase some computers, furniture, freezer, and a temperature

controlled delivery van. The working capital constitute rest of the fund. A house with premises will also be taken as real estate lease by using equity financing.

The firm will use it’s retained earning to carry on it’s operation after the lease agreement is matured. Even though after several years the firm has a strong equity back up. The management is unwilling to pay dividend till the end of year4.

As it is a private limited company an also an agro based firm government tax exemption policy will facilated the operation of the firm at the starting year. More over government continued attention and care will help the firm to have debt from different sources at minimum rate which is now 10%-12% depending on sources of fund. We have considered rb=11% which is available from nationalized commercial bank. Repayment of debt after 3 years will make the firm an all equity firm, which indicates in case of growth we can manage fund easily from different lending sources.

Stress Testing Results Case Base Best Worst

NPV 4546485 8743893 186579

IRR 31% 48% 15.50%

PB(Years) 3.4 2.48 3.76

DPB(Years) 3.75 2.81 4.85

APPENDICES

Pro Forma Financial Statements(Summarized)

Pro Forma Balance Sheet

2010 ASSET

2011

2012

2013

2014

Delivery Van

900000

800000

700000

600000

500000

Furniture

67500

60000

52500

45000

37500

Freezer

180000

160000

140000

120000

100000

Computer

90000

80000

70000

60000

50000

A/C Receivable

2255200

5208000

6966000

5043150

5114550

Prepaid Rent

2700000

1350000

0

0

0

Cash

3237200

5201187

7826109

9477653

10349841

Total Asset

9429900

12859187

15754609

15345803

16151891

Equity

2000000

2000000

2000000

2000000

2000000

Debt

4050000

4050000

4050000

0

0

Net Income

882587

2591297

2510891

5333864

5313900

882587

3473884

4484775

5318639

Equity Liability

&

Retained Earning A/C Payable

840000

1080000

1080000

1440000

1440000

Interest Payable

445500

312200

164238

0

0

Loan Payable

1211813

1345112

1493074

0

0

Tax Payable

0

597991

982522.4

2087164

2079352

Total L & E

9429900

12859187

15754609.4

15345803

16151891

Pro Forma Income Statement 2010

2011

2012

2013

2014

10313600

10620200

13654300

13695100

3105000

3105000

3652600

3702658

7208600

7515200

10001700

9992442

720000 30000 30000 15000

720000 30000 30000 15000

756000 30000 30000 15000

793800 30000 30000 15000

Particulars

Gross Profit

776740 0 283500 0 493240 0

Salary Utility Insurance Training

720000 30000 30000 15000

Sales COGS

expenses Fuel Legal Mobile Expenses Advertisement Depriciation

45000 20000

49500 0

51975 0

57172 25000

62890 0

0 30000 137500

0 30000 137500

0 30000 137500

0 30000 137500

1350000

1350000

1500000

1500000

1345112

1493074

3707112

3857549

2580672

2599190

EBIT

15000 30000 137500 135000 0 121181 3 360431 3 132808 7

3501488

3657651

7421028

7393252

Interest EBT

445500 882587

312200 3189288

164238 3493413

0 7421028

Tax

0

Net Income

882587

597991.5 2591296.

5

982522.406 2510890.59 4

2087164.13 5333863.87 5

0 7393252 2079352.12 5 5313899.87 5

Rental Payment Loan Repayment Operating Expenses

0

Pro Forma Statement Of Cash Flow

Net Income Depriciation ď „NWC CFO

2010

2011

2012

2013

2014

882587 137500 1020087 2457887 -1437800

2591297 137500 2728797 764810 1963987

2510891 137500 2648391 23468.6 2624922.4

5333864 137500 5471364 -1730180 7201544

5313900 137500 5451400 79212 5372188

0

0

0

0

1963987

2624922.4

7201544

5372188

0

0

5550000

4500000

1963987

2624922.4

1651544

872188

0

3237200

5201187

7826109.4

3237200

5201187

7826109.4

9477653.4

9477653.4 10349841.

4

Investing Activities 1375000 Free Cash Flow(FCF) -2812800 Financing Activities 6050000 Net Cash Position 3237200 Beginig flow

Cash

Closing Cash

Stress Testing & Results Base Case Year Cash Flow PVCF

2009 -4675000

NPV=

4546485

2010 -2812800 -2552843

2011 1963987 1617743

2012 2624922 1962333

2013 7201544 4886155

2014 5372188 3308097

Worst Case Sales COGS GP OE EBIT Interest EBIT Tax Net Income Depriciation CNWC OCF Io FCF PV

2010 7767400 2835000 4932400 3604313 1328087 445500 882587 0 882587 137500 2457887 -1437800 -1375000 -2812800 -2536453

NPV=

186579

Best Case 2009 Sales COGS GP OE EBIT Interest EBIT Tax Net Income Depriciation CNWC OCF Io FCF PV

2010 10004192 2794500 7209692 3326414 3883278 445500 3437778 0 3437778 137500 2457887 1117391 1375000 -257609 -232299

NPV=

8743893

2011 10313600 3105000 7208600 3707112 3501488 312200 3189288 597991.5 2591296.5 137500 764810 1963986.5 0 1963986.5 1597035

2012 10829280 3568297 7260983 3929538.72 3331444.28 164238 3167206.28 891568.568 2275637.71 137500 23468.6 2389669.11 0 2389669.11 1752273

2013 11370744 4032176 7338568 4165311.04 3173256.96 0 3173256.96 893271.833 2279985.12 137500 -1730180 4147665.12 0 4147665.12 2742558

2014 11939281 4556358 7382923 4415230 2967693 0 2967693 835405.7 2132288 137500 79212 2190576 0 2190576 1306166

2011 11204695 2990115 8214580 3492734.7 4721845.3 312200 4409645.3 826808.5 3582836.8 137500 764810 2955526.8 0 2955526.8 2434477

2012 12549258.4 3199423.05 9349835.39 3667371.44 5682463.96 164238 5518225.96 1552001.05 3966224.91 137500 23468.6 4080256.31 0 4080256.31 3050307

2013 14055169.5 3423382.66 10631786.8 3850740.01 6781046.79 0 6781046.79 1907169.41 4873877.38 137500 -1730180 6741557.38 0 6741557.38 4574060

2014 15741790 3663019 12078770 4043277 8035493 0 8035493 2259983 5775511 137500 79212 5833799 0 5833799 3592348

Pay Back Period Base Case Pay Back Period Year 2009 Investment -4675000 FCF 0 PB=

2014

2010 -4675000 -2552843

2011 -7227843 1617743

2012 -5610100 1962333

2013 -3647767 4886155

2014

2010 -4675000 -2812800

2011 -7487800 1963987

2012 -5523813 2389669

2013 -3134144 4147665

2014

2010 -4675000 -2536453

2011 -7211453 1597035

2012 -5614418 1752273

2013 -3862145 2742558

2014 -1119587 1306166

2010 -4675000 -257609

2011 -4932609 2955527

2012 -1977082 4080256

2013

2014

6141557

5833799

2010 -4675000 -232299

2011 -4907299 2434477

2012 -2472822 3050307

2013

2014

4574060

3592348

5372188

3308097

2190576

4+.85 4.85 Years

Best Case Pay Back Period Year 2009 Investment -4675000 FCF 0 PB=

2013 -2898891 7201544

3+.76 3.76 Years

Discounted Pay Back Year 2009 Investment -4675000 DFCF 0 DPB=

2012 -5523813 2624922

3+.75 3.75 Years

Worst Case Pay Back Period Year 2009 Investment -4675000 FCF 0 PB=

2011 -7487800 1963987

3+.40 3.40 Years

Discounted Pay Back Year 2009 Investment -4675000 DFCF 0 DPB=

2010 -4675000 -2812800

2+.48 2.48 Years

Discounted Pay Back Year 2009 Investment -4675000 DFCF 0

DPB=

2+.81 2.81 Years

Internal Rate Of Return BASE CASE Here HR=40% LR=12% LPV=2822991 HPV=8547653 HPV − Io ( HR − LR ) HPV − LPV 8547653 − 4675000 = .12 + (.4 −.12) 8547653 − 2822991 = .31 IRR = LR +

So IRR=31%

WORST CASE Here HR=30% LR=12% LPV=2128325 HPV=5279795 HPV − Io ( HR − LR ) HPV − LPV 5279795 − 4675000 = .12 + (.3 −.12) 5279795 − 2128325 = .155 IRR = LR +

So IRR=15.5% BEST CASE Here HR=60% LR=45% LPV=3574688 HPV=5001662 HPV − Io ( HR − LR ) HPV − LPV 5001662 − 4675000 = .45 + (.6 −.45) 5001662 − 3574688 = .48 IRR = LR +

So IRR=48%

Ratio Analysis

Ratio Current Ratio

2010 3.28

2011 3.52

2012 3.97

2013 4.11

2014 4.39

Cash Ratio

1.29

1.56

2.1

2.68

2.94

Total Asset Turnover

0.82

0.8

0.67

0.89

0.85

Fixed Asset Turnover

6.27

9.4

11

16.55

19.22

Gross Profit Margin

0.64

0.69

0.71

0.73

0.73

Net Profit Margin

0.11

0.25

0.24

0.39

0.39

Interest Coverage

2.98

11.2

22.27

N/A

N/A

Loan Amortization Procedure 1 − (1 + i ) −n  PV = CP   i   ⇒ 4050000 = CP × 2.26 ⇒CP =1657313

Loan Amortization schedule Year 2010 2011 2012

Beginning Balance 4050000 2838187 1493074

Lease Payment 1657313 1657313 1657313

Interest Payment 445500 312200 164238

Reduction of Lease liability 1211813 1345112 1493074

Ending Balance 2838187 1493074 0

Tax rate(exemption)for agro based Pvt Ltd Year 1 2 3 4 5

Non Publicly Traded Company 37.50% 37.50% 37.50% 37.50% 37.50%

Exemption 100% 50% 25% 25% 25%

Actual Tax Liability 0 18.75% 28.13% 28.13% 28.13%

Stress Testing Assumption Topics

Sales Growth

COGS Growt

OE Growth

interest Expenses

Change in NWC

Inflation Rate

Worst

h 13%

3%

6%

Actual

Actual

Best 12% 7% 5% Tax & depreciation rate is kept as original

Actual

Actual

1.7% Current Rate

Future Contracts schedule For fish 1st quarter 20% 40% 50% 70%

2nd quarter 30% 50% 60% 70%

3rd quarter 30% 50% 70% 70%

For Tomato 1st quarter 20% 40% 60% 70% 70%

2nd quarter 30% 50% 60% 70% 70%

3rd quarter 30% 50% 70% 70% 80%

In the above table we show that at what rate we can enter into the future contract.

Tomato

Fish

1st quarter F-13600 G-54400

2nd quarter F-20400 G-47600

3rd quarter F-30600 G-71400

1st quarter F-6000 G-24000

2nd quarter F-9000 G-21000

3rd quarter F-13500 G-31500

F-40800 G-61200

F-51000 G-51000

F-51000 G-51000

F-18000 G-27000

F-22500 G-22500

F-22501 G-22501

F-51000 G-51000

F-61200 G-40800

F-71400 G-30600

F-27000 G-18000

F-27000 G-18000

F-31500 G-13500

F-71400 G-30600

F-71401 G-30601

F-71402 G-30602

F-31500 G-13500

F-31501 G-13501

F-31502 G-13502

F-71402 F-71403 F-81600 F-31500 F-31501 G-30602 G-30603 G-20400 G-13500 G-13501 In the above table F means the quantity will sell to the future contract and G means the quantity will sell to the general market.

Projected Cost Of Goods Sold Particulars 2010 2011 2012 2013 2014

F-31502 G-13502

Direct Material:

121500 0 162000 Direct Labor 0 283500 COGS 0

148500 0 162000 0 310500 0

148500 0 162000 0 310500 0

198400 0 166860 0 365260 0

198400 0 171865 8 370265 8

Assumptions:  We will produce fish in 15 acre pond which will be divided into 45 ponds.  In first 8 months we will produce only 10 acere pond and in last 4 months we will go for the whole production.  From 15 july-1 september we can’t cultivate any vegetables due to heavy rainfall.  Lettuce will be markatable at the age of 1 month.  We are not considering the child fish.  We are not using any chemical fertilizer it is expected that our production will be 80% of usual production.  Raft life span is 1 year and it can be recycled as compost.  Lettuce price will be 45 taka.  Debt to equity ratio will .67:.33  From the 4th year we will sell 50% of our future contract selling amount on credit.  It is assumed that the feed of the fish will be bought on credit.  From 4th year salary will increase by 5% wage by 3% and fuel by 10%.

Market information Tomato Production Marketable age Market price

: 24 tons every hectre : (2.5-3) months after plantation : Tk. 22 per kg Lettuce

Production Marketable age Market price

: 250 kg per hectre : 1 month after plantation : Tk. 88 per kg

Fisheries Blank space to keep : 30% of the pond Appropriate fish : Telapiah, koi, cat-fish Young fish freeing rate

Production Marketable age

: Telapiah- (3000) pieces per acre Cat fish - (900-1200) pieces per acre Ruhit/Katla - 120 pieces per acre

: 3 crop a year : Telapiah - usually 4 months

Mortality rate Food Food providance Food proportion

: 10% : 100000 gm per acre : (1-2) times per day : (3/4)% of the fish body

Cost

: Young fish = Tk. 1 per piece Food = Tk. 20 per kg

Carriage

: Icing carriage (Telapiah)

Source: Sher - e- Bangla Agricultural University Market price Fish

: i. Cat fish (local) = Tk. (400-500) (hybrid) = Tk. (150-200) ii. Koi (local) = Tk. (350) (hybrid) = Tk. (250-300) iii. Telapiah = Tk. (150-200)

1 year Land lease rentals: Tk. (35,000-40,000) per acre 1 year Pond lease rentals: Tk. (90,000) per acre Soil

: Tk. 4000 for 5 tons

Organizationa Structure

President CFO

Director Marketing

Director Production

Supervisor

Employee

Employee Jonior

Supervisor

Supervisor

Labor

Labor

Labor

Labor

Labor

Labor

Table of Contents Number 1.

2.

Topics Executive Summary Business Idea

Page Number 1 2

3.

4.

Market Potential Resource Requirement

3 5

5.

6.

7.

8.

Implementation Plan Risk Assessment Financial Plan Appendices

6 9 10 11

Financial Variable Used Debt = .67 Equity = .33 Tax rate = .375 T bill rate = .0793 Inflation = 1.7%

∴ r wacc = .67 × .11 × (1-.375) + .33 × .1689 = 10.183%

Acknowledgement  www.nbr-bd.org  www.Bangladesh-Bank.org  Ministry of agriculture.  Bangladesh Bureau of statistics  Fisheries Department, Dhaka University  Share Bangla Agriculture University  Md. Nasim, Lecturer  Md. Shahabuddin, Lecturer