Analysis of Financial Statement

Business Plan for Shrimp Farming /

Exporting
Submitted to Mr. Mohammed
Shuja
Submitted by:
 Syed Asad Mehmood
 Ejaz Hussain
 Mohammad Furqanuddin
 Adnan Shabbir
 Ahsan Zaki Siddiqui
Flow of Presentation
 The Business
 Operations
 The Market
 Risk
 Management
 Financial Plan
The Business
 Marine Shrimp Farming in Pounds/Tanks
 Today over 50 Countries export farmed
shrimp
 Huge demand/supply gap in USA, Japan
and Western Europe
 75% Shrimp produced in China & Thailand
 25% Shrimp produced in Latin America
Unique Features of Product
 Major target specie is Giant Tiger Shrimp
 Good Price
 Growing Period is less
 Native to the Indian Ocean
 Tolerate wide range of salinities
 Huge demand in Japan & USA
Operations – Semi Intensive
 Hatchery Operation
 Nursery Operation
 Acclimatization Tanks
 Growout Pond Operations
 Process Flow of Shrimp Farming

Acclimation
Hatchery Nursery
Tanks

Grow Out Ponds

Market
Facility Layout
The Market – Market Analysis
 Key Success Factors
 Pond Made as per part
standards
 Good Quality Shrimp
hatched
 Cost Cutting methods
employed
 Entrepreneur stays on
top of the problems
 Quality at sub stages
checked
 Shrimp is saved from
diseases
 Marketing emphasized
 Adherence to
international Standards
The Market – SWOT Analysis
 Strengths  Weakness
 Comparatively low cost  Sponsor’s fund
land utilization
limitations
 Comparatively cheep
labor utilization  Funding through
 Fish farming background costly dept
of entrepreneurs
 Adherence to
international standards
 Adherence to latest
marketing tools
The Market – SWOT Analysis
 Opportunities  Threats
 Growing
 Disrupted water supply
to the production facility
Export/Local  Outbreak of shrimp
consumer ship disease
 Opening of  Orders not received,
Local/Foreign Sea once production has
food restaurants started
 Government
 No existence of
organization start
competition bothering too soon,
before profits even starts
 Law and order situation
The Market – Market Research
 Shrimp dominated 60% seafood export
from Pakistan
 Annual catch of shrimp is constant but
natural production are reducing
 Shrimp consumption has increased
 Enhancement of eating out trend and
wealth of locals.
 Shrimp remain on the top of seafood menu
The Market – Market
Segmentation
 B2C – Upper class households
 B2B – 5 Star hotels
 B2B – Wholesale / Retail Store Chain
 B2B – Upper class foreign/local sea food
outlets.
The Market – Marketing Objects
 Establish strong presence in the market
 Seafood industry conduit for foreign market entry
 Capitalize on guaranteed demand of domestic
markets
 Expand local market
 Establish the company as the premier provider of
shrimp and sea food with a significant high
margin
The Market – Strategies
 Distribution
 Utilizing the distribution channels of the large
corporations (Wholesale/Retail Store Chains)
with whom we will secure strategic alliances
will facilitate efficient product distribution.
Such corporations will typically have
nationwide coverage. This strategy will
ensure a presence in the market that increases
awareness and builds demand.
The Market – Strategies
 Promotion
 Seek out the decision-makers in large corporations
using our products
 Direct mail corporate material to the above
 Undertake a campaign of personal selling, targeting
decision-makers
 Advertise in industry journals, on the Internet, and on
our website
 Attend/sponsor exhibitions and trade shows
 Continual PR: press coverage (i.e., write-ups;
interviews; product reviews, etc.)
Business Risk
 Technology and Engineering – Moderate
 Product – Low
 Business Plan and vision – Low/Moderate
 Development Risk – Low
 Manufacturing Risk – Moderate
 Financing Risk – High
 Marketing Risk – Moderate
 Management Risk – Low
 Exit Risk - Moderate
 Management Team - Ownership
No. of Shares Pak (Rupees) %Shareholding
Authorized
800,000 Ordinary Share PKR 10/ 8,000,000
each
Issued, Subscribed and Paid Up Issued for Cash
110,000 Ejaz Hussain 1,100,000 20%
110,000 Syed Asad Mehmood 1,100,000 20%
110,000 Adnan Shabbir 1,100,000 20%
110,000 Mohammed Furqanuddin 1,100,000 20%
110,000 Ahsan Zaki Siddiqui 1,100,000 20%
550,000 Total 5,500,000 100%
 Management Team –
Professional Support
Banks: 1) Bank Alfalah, Nazimabad, Branch,
2) Soneri Bank Ltd., Gole Market Branch,

Auditor: Internal : Tanzeem & Co.,

Chartered Accountants.
Auditor External : Sheer Mohammed Khan
& Co., Chartered
Accountants.
Legal Advisor: : Ashtar Ali & Sons, Law
Associates.
 Management Team – Board of
Directors
1) Ejaz Hussain Chairman
2) Syed Asad Mehmood Director / Chairman
Executive Committee
3) Adnan Shabbir Director / Member Audit
Committee
4) Mohammed Furqanuddin Director / Chairman
Audit Committee
5) Ahsan Zaki Siddiqui Director / Member
Executive Committee
 Management Team – Human
Resources Requirement
Description No. of Positions Monthly Salary/Person
 
Management
Marketing Manager 1 35,000
Finance Manager 1 35,000
Operation Manager 1 35,000
Accounts Officer 1 20,000
Export Officer 1 20,000
H.R. Officer 1 20,000
Purchase Officer 1 20,000
Workers
Pond Supervisor 3 10,000
Laboratory In charge 1 10,000
Driver 2 5,000
Labor 12 4,000
Office Boy 1 4,000
Total 26
 Financial Plan – Cost of Goods Sold / Unit of
products Assumptions
Stocking Rate / Hector 250,000
Fry Cost / Fry (US$) 0.02
Crops per year 2
Rs/$ Conversion Rate 61
Net Farming Area 6
Total Cost of Fry 3,660,000
Cost of Fry per Kg 44
Food Conversion Ratio 1.5
Cost of Feed ($) 1.4
Rs/$ Conversion Rat 61
Shrimp Production 84,000
Cost of Foods 10,760,400
Total Cost of Fry 14,420,400
Total Cost of Fry per Kg 92
 Financial Plan – Revenue Assumptions
Stocking Rate / Hector 250,000
Survival Rate 0.70
Harvest Size (g) 25

Net Farming Area 6

Total Cost of Fry 3,660,000
Cost of Fry per Kg 44
Food Conversion Ratio 1.5
Cost of Feed ($) 1.4
Rs/$ Conversion Rat 61
Shrimp Production 84,000
Cost of Foods 10,760,400
Total Cost of Fry 14,420,400
Total Cost of Fry per Kg 92
Thank You