OFPL Business Proposal

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Date:15-Dec-2011

Business Proposal On:

Ocean Fresh Private Limited (OFPL) (A Fishing Company)

Group-6:

Ekhlasul Jannat (083-606-560)

Md Ashaduzzaman (093-0572-590)

Mahjabin Sharmin (091-0058-090)

Shahpar Newaz (063-221-060)

Jahangir Alam Sharker (092-0352-090)

Md. Rumman Hossain (093-0315-090)

Prepared For:


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Faculty- Kzm

EMB690

School of Business

North South University

Content:

Executive Summary

Deep Sea Fishing

OFPL Vision

OFPL Mission

Management Team & Corporate Structure

Company and Financing plan

Opportunities and potentials

Sales Forecast

Marketing Plan & Objective

Company Financing Strategy

Exit Strategy

Products and Services

Strategic market analysis

Customer Profile Competitive Analysis

Marketing strategies

Organizational Budget

Sensitivity Analysis


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Balance Sheet

Expanded Profit and Loss Statement

Expanded Cash Flow Analysis

Conclusion

Executive Summary

The fishing company, Ocean Fresh Private Limited (OFPL), will be a Chittagong-

based company that will produce and sell a variety of sea fishes and its related

products to the local & overseas market. The Company will be founded by a

group of local dynamic people and will be leaded by Mr. MJ Sarker.

The purpose of this business plan is to raise $125,000 (all figures in this proposalare presented in US dollars) for the development of a fishery product while

showcasing the expected and integrated financials, administrative & operational

activities and most importantly management related synergies in the next three

years.

This business proposal includes a detailed description of the plan for this fishing

business. Along with the list of products and services that is intended to be

provided, the report contains financing plan, both expansion and exit plan (if

required), marketing plan, strategic and market analysis, competitive analysis,

sensitivity analysis, break-even analysis and concluding with the figures through

various financial analysis.


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Deep Sea Fishing

Deep sea fishing is generally considered to be that which takes place where the

depth of water is 100-200 feet. In Bangladesh, there are only a few companies

who have ventured into such projects. One of the main reasons being the cost ofthe vehicle, i.e. the trawler and its licensing. Every time a new trawler is bought, a

new license is also required. Tk 25 crore - Tk 30 crore is needed to import a

fishing vessel of 300-400 tonnage capacity.

Bangladesh import deep-sea trawlers from countries such as Japan and

Thailand. But the good news is Bangladesh is now making international standard

deep-sea fishing vessels with an eye on export. Two local businesses -- Western

Marine Shipyard Ltd and Fishers Shipyard Ltd -- have 50:50 partnership deal to

make such vessels with capacities up to 350 tonnes. The joint-venture deal,

entrepreneurs said, would open a new chapter by enhancing capacity of the

shipbuilders in the country that will also be able to cut import dependence.

Western Marine has won around $200 million orders for making 24 vessels for

the buyers including from Germany. And now the new venture would help meet

the domestic demand.

At present nearly 200 deep-sea trawlers are operating to catch shrimp, pomfret,

snapper and tongue sole in the Bay of Bengal. Stakeholders said almost all these

trawlers are imported and have become very old. Many of these old trawlers

would need to be replaced by new ones within the next five to 10 years.

This would make deep-sea vessels cheaper by 20% than by using imported

trawlers.

OFPL Vision

To be the leading company of the ocean fisheries industry in Bangladesh

To be the best ocean fish exporter in terms of quality and service


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To produce a healthy balance sheet

OFPL Mission

To produce the best quality products and service

To abide by international standard of ocean fish exporting

To continuously upgrade technology and standard

To contribute to the success of all stakeholders

Management Team & Corporate Structure

Mr. MJ Sarker who will the founder of this company is a dynamic businessman

with an experience of 15 years in the fisheries and ocean fish trading industry.

Through his expertise, he will be able to bring the operations of the business to

profitability within its first year of operations.

OFPL will produce different types of fish items on a yearly basis depending on

the demand for seafood products. At the onset of operations, OFPL will have


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approximately 10-12 people to assist with the day to day operations of the

fishery. The following sections of the business plan will further describe the

services that will be offered by the company.

Company and Financing plan

Mr. Sarker is seeking to raise $100,000 as a bank loan (debt finance). The

interest rate and loan agreement are to be further discussed during negotiation.

This business plan assumes that the business will receive a 10-year loan with a

9% fixed interest rate. The financing will be used for the following:

1. Financing for the first 6 months of operations2. Capital expense and operating expense including capital to purchase

equipments associated with the Companys operations3. Site / location

Mr. Sarker will contribute $25,000 to the venture.

Opportunities and potentials

As mentioned earlier, Bangladesh is naturally blessed for fishing by being

situated by the Bay of Bengal. And gradually the fishing industry is being

explored. This industry has an escalating demand for seafood product. By now

Bangladesh even has established regional and international recognition in this

field. Private sector resilience is also another important factor which can be well

found in this country.


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Sales Forecast


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Marketing Plan & Objective

The Founder expects that the business will aggressively expand during the firstthree years of operation. He intends to implement marketing campaigns that will

effectively target seafood buyers within the target market and to maintain anextensive marketing campaign that will ensure maximum visibility for thebusiness in its targeted market.

The objective is to develop relationships with major groceries and fish/seafoodwholesalers that will acquire bulk inventories from the company and to developongoing purchase order relationships with coops throughout the target market.

Company Financing Strategy

The Company will be registered under THE COMPANIES ACT XVIII(A PrivateCompany Limited by Shares). OFPL requires $125,000 as initial Working Capital.Below is a breakdown of how these funds will be used.


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Investor Equity: Currently the company is not seeking an investment from athird party.

Management Equity: Mr. Sarker owns 100% of OFPL.

Exit Strategy

If the business is very successful, Mr. Sarker may seek to sell the business to athird party for a significant earnings multiple. Most likely, the Company will hire aqualified business broker to sell the business on behalf of OFPL. Based onhistorical numbers, the business could go and get a sales premium of up to 3 to 5

times the previous years net earnings.

Products and Services

The company intends to develop OFPL as a multi-fish producing property anddistribute its products to seafood wholesalers throughout the target market. Mr.


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Sarker has already sourced the equipment and vehicle that will be used for theFisherys operations. Additionally, it should be noted that Mr. Sarker may join afishery coop that will assist with the distribution and sale of the Fisherys seafoodand fish.

Strategic and market analysis

This section of the analysis will detail the economic climate, the fishery industry,the customer profile and the competition that the business will face as itprogresses through its business operations. Currently, the economic marketcondition in Bangladesh is not up to the mark.

The economy has been also greatly impacted by other forces like Stock Market,Real Estate, Gas & Power etc, which has halted to historical lows. Many

economists expect that this recession will continue through 2012, at which pointthe economy will begin to recover.

However, this should have a minimal impact on the Fishery industry to generaterevenues as its fishes are well popular that are constantly in demand regardlessof the general economic climate.

Customer Profile

The Company intends to do business with farmers markets, fishery coops,fish/seafood wholesalers and foreign importers that will acquire the Companysinventories of fish.

Competitive Analysis

There are a number of competitors in the same industry (meaning that it is not

feasible to describe each one). But OFPL plans to compete in this industry byproviding customers with service/products that are of better quality or lessexpensive than competition.

Marketing strategies


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OFPL marketing operations will be minimal till the Company solidifies ongoingrelationships with fishery coops and wholesalers; very little marketing will berequired to maintain these relationships.

At the onset of operations, Mr. Sarker intends to aggressively develop

relationships with local, regional and overseas fishery coops that will assist OFPLin maintaining stringent pricing (through forward and futures contracts) so thatOFPL always has a predictable stream of income.

In this instance, the Company will hire a marketing/advertising firm to properlyposition the Companys image and brand so that it can directly sell packaged fishto major grocers, supermarkets, farmers markets and selected retailers.

Organizational Budget

Assumptions are:

OFPL will have an annual revenue growth rate of 10% per year The Owner will acquire $100,000 of debt funds to develop the business The loan will have a 10 year term with a 9% interest rate


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Sensitivity Analysis

In the event of an economic downturn, the business should not have a majordecline in its revenues. OFPL intends to trade demand based fish that will be

readily purchased by wholesalers, grocers, coops, and other organizations thatdeal in fish and seafood. Thus the Company will be able to remain profitable andcash flow will be positive in any economic climate.

Source of funds

Financing

Equity Contributions

Management Investment $25,000.00

Total Equity Financing $25,000.00

Banks and Lenders

Banks and Lenders $100,000.00

Total Debt Financing $100,000.00

Total Financing $125,000.00


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Cash Flow Analysis


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Balance Sheet


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Break-even Analysis


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Expanded Profit and Loss Statement


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Expanded Cash Flow Analysis


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Expanded Cash Flow Analysis (contd.)


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Expanded Cash Flow Analysis (2nd Year)


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Expanded Cash Flow Analysis (3rd year)


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Conclusion

This market has a long way to go before reaching saturation. According to the figures and current scenario of themarket in Bangladesh, it will be very unwise not to grab the opportunity to step into the market and take advantageof it.


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APPENDIX

OFPL Business Proposal

Documents

Transcript of OFPL Business Proposal