Business Planning For SS Oyster House Bangladesh A Sustainable Business Plan

Executive Summary
Oysters are naturally complete and are often referred to as milk of the ocean. Only one of its kind corporal and organic conditions at Coxs Bazar coast, southeastern Bangladesh, is accountable for an accretion of high amounts of Oyster spat. Direct settlement of the spat to suspended using locally available cultch in the (e.g. water plastic column sheet, was pottery, compared by

selected materials

windowpane

shell and bamboo) at Gorakghata of Moheshkhali channel and Chufaldhandi canal of Coxs Bazar coast. Coastal poor community was involved to prepare the cultch by using locally available selected materials such as plastic sheet, pottery, windowpane shell and bamboo. Ten

pieces of plastic sheets/pottery/windowpane shell were connected with ropes maintaining 10 cm inter-distance between two subsequent units to prepare a cultch frame of about 1 m long. The prepared cultch frames were installed at different depths of two selected sites for spat collection so as not to interfere with the day-to-day operations of the fishermen, providing unrestricted boat access to coastal waterways for their ongoing navigational activities. Environmental variables such as water temperature, salinity, transparency, dissolve oxygen and pH were measured fortnightly from each culture sites. Bamboos of various sizes were used for raft construction. Plastic drums of 200 liter, one on each corner, were used as floats to keep the raft afloat. Iron anchor was attached to the raft. Cultch, rope and tray were hung from the raft for culture in both sites. The majority of seafood wholesalers and retailers that tasted the oysters have responded positively; several immediately placed orders. The team also introduced by watermen to one of the largest seafood wholesalers in Chittagong. After tasting the oysters, the wholesaler offered to purchase, at a premium price, the entire amount of oysters currently
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being grown. A cost-effective distribution system was identified to transport the harvest to Jessup. They have also ordered more seed oysters and supplies to construct additional culture equipment so as to continue and expand their existing operation Material costs for windowpane shell, pottery, bamboo (10 poles), and plastic sheet frame were Taka 17, 57, 55 and 72, respectively where average spat density was found 0.34, 0.16, 0.02 and 0.14/cm2 of oyster and 0.69, 0.33, 0.03 and 0.27/cm2 of green mussel in the said cultch. Cultch-wise monthly average growth rates were measured as 0.6-09, 0.6-0.8, 0.5-0.9 and 0.5-0.9 cm for oyster, and 0.4-0.9, 0.4-0.7, 0.3-0.6 and 0.3-0.9 cm for green mussel. The economic analysis, spat density and monthly average growth rate indicate that windowpane shell is the most viable spat settling material for the coastal poor communities. Total materials costs for 1 raft with preparation and installation were Tk. 1,365 where total production was 115 kg oyster and 92 kg green mussel. Muscle weight was 18 kg oyster (16% of body weight) and 38 kg green mussel (41% of body weight) with selling price Tk. 100 and Tk. 60 respectively in Rakhain community. Shell was sold to the lime producers and poultry feed mills at the rate of Tk. 5/kg for oyster and Tk. 8/kg for green mussel. Total selling price of meat and shell was Tk. 4,997 and the profit was Tk. 3,632 in 8 months from 1 raft. Small size wild clams have harvested from the intertidal and subtidal area of Moheshkhali channel and transplanted to the nearby sandy-muddy substrate of about 2,000m2 area, presumable better suited to growth or for easier harvesting. Total harvesting of clam was 203 kg, where muscle weight was 21 kg (11% of body weight) and total selling price was Tk. 1,152. The XYZ Company provides the first and evidence Chufaldhandi that external are cultch materials and

deployed

at Moheshkhali

channel

canal

economically

environmentally viable for spat collection. This can be a new horizon for the coastal
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landless poor and PL (Penaeus monodon post larvae) collectors to discourage their destructive present occupation and grab Oyster income generating options. The prospects culture as an important alternative

for coastal Oyster culture in Bangladesh

depend on the integrated management approach of the farmers, researchers, supporting institutions, development agencies, private entrepreneurs and the end-users.

Company Overview
Mission Statement To establish a complete Oyster export house by adding latest technological equipment in Bangladesh within 2 years of inauguration of Oyster export business and also try be a market leader in Chittagong, Bangladesh. Vision Statement To be a market leader in domestic Oyster supply and modest supplier in abroad market house so that it can succeed in an open, competitive global environment in Bangladesh. Key Products Services Appearance, saltiness and fatness are the main factors determining Oyster meat quality. By fatness we mean plumpness because Oysters never get fat in the greasy sense. They do not store their reserve food in the form of oils (Table 1) but they store in the form of animal starch (glycogen).
Constituent Water Solids Protein Glycogen Fat Mineral matter Based on weight of fresh meats (%) 76.10 23.90 10.12 6.14 1.91 1.82 Based on weight of completely dry meats (%) 0.00 100.00 42.43 25.75 7.98 7.60

Table # 1 Composition of oyster meats (after Pease, 1932)

Species

Length (CM)

Shellon Wt (g)

Meat Wt (g)

Meat Wt (%)

Av. Meat Wt (g)

Use of meat

Use of shell

Price (Tk.)/Kg Meat Shell

Oyster

4.9 5.6 5.1 5.8 5.3

86 94 87 97 88

11.95 16.54 13.49 16.30 14.26

13.9 17.6 15.5 16.8 16.2

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Tribal people Use as Feed

Lime & Poultry Feed

100 120

3-4

The Oyster species (Oyster, Green mussel and Clam) can be distributed both in domestic and international market as live condition. Oyster meat usually consumed as semi -boil and curry. The shell has been used for lime preparation and Oyster feed industry.

Strategic Goals and Objectives

The Oyster export project would be address the following strategic direction of the company Exhibit corporate responsibility Increase Production Value Create Employment Opportunities Widen valued business partners base Creating sustainable stakeholders Add value to the company operations Attribute in reputation management

Increase economic activities Raise foreign exchange reserve base Open new Market area Value addition Set-up a grading house, mini cold storage, good transportation facilities including refer van to maintain cooling system. With the gain of expertise and experience and market development, in course of time develop Agro Processing infrastructures and widen the horizon of the business over to process Oyster. Import latest technological equipment. In addition, this project will consolidate the reputation being socially responsible and make profit for the stakeholders by efficient use of resources.

Management Team
Partners of the XYZ Oyster Supplier Limited: This project started or initiated by three partners. To start with, the XYZ Limited with core management team that will oversee the entire company and divided in different sub-team according to activity.

Managing Director

Marketing Director Sales (Domestic & Foreign Market) Purchase Officer Promotion Officer

Production Director

Finance & A/C Officer Accounts Officer

Production Manager Store Manager

Finance Officer

Security Dept.

We will create an advisory board to assist the waterman as they expand their operations. Presently, there has not been any formal structure created for the oyster project.

To start with the project a small team comprising the following personnel may be considered:
Name of the post Marketing Director Accounts & Finance Director Production Director Project manager Program Officer Accountant Field supervisor Field co-supervisor Grading supervisor Skilled Labor Un-skilled Labor Night Guard Driver Others No. 1 1 1 1 1 1 2 5 2 4 8 2 2 5 Work place HO HO HO HO Field HO Field Field Field Field Field Field HO/Field Field

Industry Overview and Analysis

Spat collection (seed/larvae) Industry Overview and Analysis Spat collection (seed/larvae) Oysters larvae attach to many different materials Shells, stones, brush, leather, iron, glass, grass, etc. But the surface must be firm, smooth and reasonably Clean. In most places silt and slime (tiny plants) create Shortages of clean surfaces for spat fall. Consequently, Under natural conditions most ready-to-settle larvae Die because they fail to find setting places. Reducing this heavy loss of mature larvae is one of the Oysters Farmers chief ways of increasing production. They do This by providing clean materials at exactly the right Time for larvae to attach to and survive. This is called spat collection and the materials supplied are called spat collectors or cultch. Cultch was prepared manually by using locally available materials such as plastic sheet, pottery, kort al (window pane shell, Placuna placenta) bamboo and rope. Oyster Culture Fact Sheets Parts for constructing a 10 X 26 modified Taylor float Three 10 sections of 4 thin-wall. Four 4 PVC pipe elbows. PVC primer and cement (Cut two 33 sections from the third 4 PVC pipe, to form the end pieces. Prime, cement and connect the four sections (two 10 and two 33 pipes) with PVC
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elbows. Polyethylene culture bags. Two fine mesh (5-mm) spat bags, three small mesh (1/8) bags, five medium mesh (3/16) bags, and six large-mesh (3/4) grow out bags per float (@ $3.70 ea. Local source: East field Farms. 24 21 nylon cable ties (four per culture bag, to attach to float). Cable ties or coated wire to close each end of the bags Floats can be tied to a dock or tethered at both ends to 3 x 3 or 4 x 4 stakes driven into the sediment. How many oysters will each float support: Each grow out bag holds ~250 fully grown oysters? Each float holds six grow out bags, or 1,500 oysters. Seed oysters (5 -8 mm) go into spat bags, 500 to 1,000 per bag. In this area, oysters grow about 1/2 a month during the growing season. Example: to grow 15,000 oysters, start by putting 750 seed oysters into each of 20 fine-mesh spat bags, which can fit on four floats. Grade oysters and put into increasingly larger-mesh bags as they grow. Once sufficiently large (about 1 long) the oysters can go into 3/4 grow out bagseventually 60 bags on 10 floats. Industry Overview and Analysis The project will create through a two-part of program that involved technical workshops and demonstration projects, followed by marketing assistance and extension support. The project team will decide to start small, with one workshop, and then expand the project depending on the watermen's interest. Team participants come from natural resource management agencies, academia, and nonprofit and for-profit organizations involved in sustainable aquaculture and agriculture development, pollution prevention, and the food industry. Oyster culture is a very new inception in supplementary food in Bangladesh though fast
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world and other Asian countries are habituated to take Oyster as a supplementary food. Oyster business is a very potential business in Bangladesh. It has a great potentiality to export Oyster meat to the abroad country after meeting domestic demand. Experts gave overviews of topics ranging from nursery and grow-out techniques to marketing and government regulations, followed by equipment demonstrations. Once people will cope up with its taste then people will buy it frequently. Government is giving emphasis on Oyster business, which can deal with aqua based business. This business is fully reliance with natural resources especially in long coastal area in Bangladesh. If Oyster meat processing plant technology will imported by the private entrepreneurs then we can export Oyster meat in full-pledged manner within short time to the abroad country. NGOs are giving micro credit to the rural women to open up a Oyster business. By doing so people will feel encouragement coming up in this sector. A survey has conducted by university researcher and find that every Oyster house can collect plenty of Oyster from coastal resources which can meet local demand and as people of Bangladesh is not fully habituated to take Oyster as a food but it is evident that Oyster is as like shrimp which can take by Bangladeshi Muslim without having further thought regarding the questions of Halal. Funding for the project will come from private funding organization like Banks, Donors and government. Foreign funding organization also encourages doing the farming and donors intensions

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are to provide us latest technology and other logistic support to the farmers directly as ATDP-II is doing so at present. It is easy to operate a Oyster house because it is fully based on nature and there has no manufacturing cost and other expenses are very low. Once Bangladeshi people are aware about the Oyster meat then it is very hard to meet local demand instead of international demand. Oyster processing is very easy rather than other alive products in the world. The tribal is accepting Oyster meat as a habitual food item and tribal in our country is only approximately 5%. So there is lot of potentiality to get the whole 14 crores market. Oyster contains protein, lipids, carbohydrates, calcium, iron, copper, zinc, phosphorus and vitamin A B C D and E in a healthy balance. Technology will come through fast world and some Asian countries that are already habituated with this oyster culture and people also frequently take oyster meat as a food.

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Operational Plan Products Description

Oyster can be sold as appetizers in oysters restaurants and seafood markets, the oysters must attain a Size of 2-1/2 to 3-1/2 and larger. Oysters not reaching this size can sometimes be sold as shooters or cocktail oysters for a discounted price. The key to selling the oysters, according to the chefs, buyers and established with whom we spoke, rests on quality, consistency, and cleanliness. The product will need have an appealing salty flavor and be available almost year-round.

Product Service Overview

Development of existing and potential market Train farmers to adopt appropriate technologies for quantity production Promote commercialization of Oyster businesses Appropriate structure for Oyster business Value addition in Oyster business Hire processing technology from abroad

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Project expected to commence form October 2004 and year wise implementation phases of the project are as follows: After getting financial and technological help, the project will start its operation First year in full-pledged manner in the starting year. Second year Third year Fourth year Fifth year Expand the project Stabilize and expansion stage En-cashing and Expansion stage Profit maximization and diversification

The first year activity details are: Decision and selection of personnel Arrangement of funds Set-up field office Commence production Inspection, monitoring and supervision in all levels of production Contract with the buyers like bulking customer, liming producer etc. Start Harvesting and processing Ar Market follow-up and customers servicerange appropriate van for inland transportation and other logistic supports

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Facilities

The followings may be considered for selection of the production area:

Suitable Location Transport and logistic support Availability of raw materials Van, cold room, pick-up, processing room etc. Electricity Technological support Communication Teknaf, Coxs Bazar, Ramu, Bagerhat, Patuakhali and others coastal areas are potential location for harvesting quality Oyster production area. Considering above parameters and availability XYZ Oyster Supplier Limited will has four collections center and then transport it to main processing center near Dhaka or Chittagong.

Production/Manufacturing Process
Oyster Production The goal is a one-season (May-November) grow-out to market size, and then, if the supply is sufficient, up to a 12-month market, selling oysters off as they reach a desirable size (or smaller size, if enough test positive for Dermo). However, there is some concern about being able to sell oysters during the summer, because reduced meat quality due to spawning, and high bacteria counts. To reassure customers, some do not sell oysters during the hottest months of the year. We will adapt to supply and ensure product availability year-round. This may allow capitalizing on
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the wild harvest closures and summer tourist booms by selling to these ready markets at a premium. Malfunction in production may be encountered during extremely cold weather, when it is difficult to work outside with oysters. Heavy winter can prevent access to oyster floats or regular boat shipments coastal area to the mainland. Restaurant chefs often expect year-round availability. They dislike surprises and don't like to put an item on the menu if they can't have the product all the time. On the other hand, many if not most high-end seafood restaurants and seafood markets in this area, especially those that change their menus daily depending on whats fresh and available, are accustomed to seasonal supplies. Oyster Growth Cycle April-May: Brood oysters spawn in hatchery Mid-late May: Seed oysters grow to 5-8 mm, large enough to put into culture apparatus November: Most oysters reach market size (rather than in Spring) Starting with seed oysters late in one season may result in a greater percentage attaining market size by the end of the following season. Here the all step-by-step process that are as follows: 1. Supply-demand viability analysis 2. Selecting harvesting place & Start harvesting 3. Process Oyster meat and Oyster shell 4. Buyer searching and signing the agreement in domestic and international market 5. Sell-out mature meat to the targeted customer

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6. Oyster meat processing for export 7. Preserving meat through cold storage 8. Shipment 9. Customers services Research and Development XYZ Oyster Supplier Limited will have continuous research and development system to do the business on the following aspects: Constant supply is prime consideration for entering to the upstream export market TQM implication in production or harvesting and procurement place. Every stage of its processing should be caring by the producer Harvesting and post harvesting caring Processing, cooling and proper transporting Proper shipment and giving customer services to the international buyer. At the airport, random check of packages to ensure buyers specification and quality. Human Resource Plan Estimates for the number of watermen needed on a part-time basis for the project run about 60,000 oysters per waterman per season (considerably more if full-time). Work is done in batches and takes approximately five days to grade, clean and maintain the operation every month during the growing season. Because of their excited schedules, the watermen are contemplating hiring temporary part-time help for harvesting and maintenance. Though this project has enough capable persons to harvest live Oyster meat, searching buyers and conducting
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marketing in the potential and existing arena. One of our directors is fully experienced in this Oyster sector over 7 years. On that period of time, he has conducted lot of seminars in Bangladesh and international arena like Thailand, Vietnam, India, Myanmar and Singapore. However, we have capable work force but we have a plan to give proper training towards the normal employee which is treated as unskilled employee and other field worker including security, driver, etc so that they can also caring regarding our projects products.

Market Analysis Overview

Potential Customers Domestic market: Tribal people consume Oyster meat, poultry feed mill owners and lime producers consume shell). In the other hand, all the conscious people in Bangladesh. Potential customers: All Muslims, Hindus, Christian, Buddhist, Chinese/Thai restaurants, 3 star hotels, fast food shops, chips, etc.) International Market: The potential international market lies in Asian countries like Thailand, Singapore, Myanmar, Vietnam, and China etc. Global Competition The majority of oyster products imported into the U.S. and other European countries are from Korea and Canada. The Korean products are canned, smoked and shucked oysters, which pose no competition to U.S. half-shell producers. Canadian oyster are producing an excellent halfshell product. They cater mostly to New England cities, although Canadian oysters are now showing up in markets and restaurants in the Washington-Baltimore area. As raw bars and restaurants continue to build their diverse offerings for oyster connoisseurs. However, Asian countries are now coming up to do the culture and they are successful to do so. As Bangladesh has longest
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coastal areas in the world, we have a lot of potentials to do its culture through naturally or hatchery based culture. We have cheapest manpower that can able to minimize the cost and effective enough to join global competition. Size and Growth of Market The product has tremendous nutrition value and it can be supplementary and staple food for us. So 14 crores peoples could be Oysters meet consumer after having good understanding about the products. Besides the tribal peoples (about 5% of the total population) are presently consuming the Oyster meet. Muslim has no obligation to take as a food because it is like a shrimp, which is now, settle down as a complete food. Competitor Analysis The exceptional quality of the oysters is a result of good husbandry, good water quality, good water circulation, abundant food organisms and relatively high salinity (20-21 ppt). These attributes impart an appealing flavor that sets them apart from some of the other oysters grown by competitors in different countries. The restaurants, wholesalers and seafood buyers that sampled oysters were impressed with the surface, consistency and taste. Many requests will be placed orders prior to availability. The quality oysters and consumer similarity for local products are enough to capture a local market niche. By including the story behind the oysters and the attempt to create new economic opportunities for the projects and watermen and restore natural oyster beds, the project can create an image and brand recognition that will give them an additional advantage over their competitors. This Oyster culture is new for Bangladeshi people and they are not habituated with this meat of Oyster. But is has good food value. During 1970s shrimp farming has started in the coastal zone of Bangladesh, in 1990s it has flourished in full
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pleasured throughout the coast i.e. from Taknaf to Satkhira. Crab has started in the middle of 1990s and now in full operational stage throughout the coast. Similarly Oyster has started at the beginning of 2000 and it will extend by 2008-2010. At that time, the culture will be extended in full pleasured manner, commercialize, both domestic and international market demand will increase. As a result public, private, NGOs and donors will be more interested to set up this industry. SWOT Analysis SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is a standard tool used by economists and business analysis to assess the status and potential of an activity, enterprise or sector prior to developing a plan for further development. It is subjective but structural and forms a useful summary and framework for discussion and the exchange of ideas. A very general SWOT is presented below relating to the Oyster aquaculture in the coastal waters of Bangladesh. Strengths Seed naturally abundant Feed and nutrition not a problem generally detritus and/or plank tonic feeders Low input, low waste Pseudo-faces deposition is relatively local Mostly non-mobile or attached Can survive without water Can withstand temperature extremes Can adapt to varied salinity Easy to handle and transport
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 Live market Resistant to some forms of predation Resistant to some forms of disease Market value of some species very high Low investment, low operating costs Weaknesses Wild seed supply may be erratic No hatchery for Oysters seed production Some species are slow growing High labor requirements associated with harvesting and cleaning High shell weight & Poaching Opportunities Potential as waste treatment organism Potential as component in poly-culture systems Simple technology, low costs, low inputs Low risk Often environmentally begin or positive Increasing demand in international market

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Threats Vulnerable to certain diseases Susceptible to certain kinds of predation (e.g. gastropod, starfish, duck, ray, etc) Susceptible to fouling May concentrate toxins and heavy metals May harbor and concentrate human pathogens such as fecal coliforms, gastroenteritis, cholera, typhoid and infectious hepatitis A and E Large areas of fixed stakes, racks, etc may alter sedimentation patterns. Risk Assessment The volatility of the half-shell oyster market, Diseases that could damage the oysters as they grow to maturity, Competition from other suppliers outside the region, The slight risk of other diseases associated with raw oysters, which could have an adverse effect on a small percentage of consumers with weakened immune systems. Extensive regulatory programs monitor the production and marketing of raw shellfish to assure product safety, thereby minimizing this risk. Here some list of risk assessment: Create Buyers - Medium risk Timely delivery - Low risk International market situation - Low risk Natural calamity - Low risk Export Barrier - Low risk Build consciousness - Medium risk Proper harvesting - Low risk
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Competitions - Medium risk

Marketing Plan
Sales and Marketing The costs of transporting oyster from costal area to city restaurants and other wholesale and retail markets have been estimated at Tk. 0.90 per oyster Tk. 50 per box/cartoon plus other ferry charge. If the watermen are able to capture Tk. 10-Tk. 25 $.55 an oyster, this brings them a very good net profit per oyster. This is the same price they can capture by using a wholesaler. Wholesalers who will establish a market presence and create brand recognition for their oysters. This will decrease startup costs, streamline distribution logistics, and immediately establish a revenue stream. Here some sales and marketing things to do as follow: Tribal (Rakhain) from Chittagong Hill Tracts (Rangamati, Bandarban and Khagrachari) come to buy the Oyster meat. Find global Oyster market Instant personal visit, participation in seminars Explore and expand the market Contact through phone, e-mail, Internet, fax, surface mail etc. Develop a website on Oyster Contact with Lime producers and Oyster feed mill owners to buy Oyster shell. Chinese/Thai restaurant will collect alive species from the cultured site and preserved accordingly (2-3 days alive). Initially we will supply the species to International market like Asian countries (Thailand, Myanmar, Vietnam, China, Singapore, Japan, Hong Kong) within short time.
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Distribution Selling to wholesalers requires less time servicing accounts but brings a slightly lower price per oyster when compared to direct sales. One wholesaler made a verbal offer of modest amount per oyster and can take up to 30 to 40 (100-count) boxes per week. They generally ask for two deliveries per week. Using wholesalers decreases the amount of bookkeeping and account management, and allows growers to focus more time on production and quality control. However, when prices reach a premium during holidays and times of shortage, they will need to monitor the market to ensure they are receiving the best price possible from wholesalers. If we can ensure the continuous supply of Oyster, the consumers will collect by themselves. Other hand, we will keep option of: o Contractual agreement with transport company to supply the Oyster to the relevant customers o Our Project will also buy own freezer van The business in Oyster has not grown as a competitive business in Bangladesh. Still there is a chance to come up lot of entrepreneurs to harvest the Oyster and supply it to domestic and international market. Those who are habituated to take Oyster meat they will collect the product from us their own ways. Though it is true buyers will collect from us except international buyers, we will have a distribution channel which will make supply smoother for buyer. Advertising/Product Promotion The fact in Oyster business is to build consciousness. We need to build consciousness of people in the context of religion and others factors. Another problem is that we do not have habit to take it. Firstly we need to develop habit then the demand will automatically mount. We will use all the
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media if possible due to build consciousness and habit of the Bangladeshi people. The availability of the Oyster should be informed to the potential customers through different media like newspaper, radio, TV, seminars, e-mail, Website etc. Customer Service We will keep a customer service cell, who will provide required information among the domestic and international customers. Only 24- hours customer service can provide constant services to the buyer. The customer service cell needs to know how to provide information to the buyers and how to deal with the problems. Their answering should be more calculative and logical. Financial Management Plan Assumptions Taking into consideration of marketing opportunities and available resources -first five years export plan could be as follows:

Name of Oyster Product

Projected Export Volume in MT

Y1 Oyster Meat Shell Total 18 89 107

Y2 19.5 98 117.5

Y3 20.5 108 128.5

Y4 24.5 122 146.5

Y5 30 140 170

TOTAL 112.5 557

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Oyster has two products like Oyster meat and Oyster shell. Oyster meat can consume as alive or frozen. Bangladeshi people especially tribal are like to consume if as alive. But still we need to work on building consciousness. Our first five years plan as above. Oyster is naturally produced that is why we need to collect or harvest the things properly and process it scientifically so that it can get the better price in international market. The investment in very low to procuring Oyster from the nature. Value chain of Oyster meat production (Projected) SL. NO. 1 2 3 4 5 6 7 8 Particulars of Cost Collecting or Harvesting cost Grading & Discharge from shell Packaging, carton Transport with Cooling Cost Handling Local transport Airfreight & Cooling at BACD(Airport) Overhead cost Total Costing (Tk.)/Kg. 28.00 6.50 5.00 3.75 2.20 1.00 5.25 4.10 55.8

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Investment portfolio Investment for the project has been estimated as follows: Year First year Second year Third year Fourth year Fifth year Total Investment amount 3.3 (Tk. In million) 1.9 1.7 1.3 0.9 9.1

Balance sheet (As at...) Assets

1. Cash 2. Investment portfolio 3. Accounts receivable 4. Inventories 5. Prepaid expenses 6. Others Total current Assets Fixed Assets

First Year
250 1000 250 150 50 20 1720

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1. Land 2. Buildings 3. Equipments 4. Accumulated depreciation Total Fixed Assets Total Assets Current Liabilities 1. Accounts payable 2. Accumulated expenses payable 3. Others Total current liabilities Long-term Liabilities 1. Business loans 2. Bank Mortgage 3. Others Total Long term liabilities Owners equity Total Liabilities and equity Financing Plan (Estimated)

200 100 100 30 430 2150

350 300 80 730

500 200 100 800 700 2150

Total investment of Tk. 10 Million including working capital Tk. 3.3 Million Internal rate of return (IRR) of the projected investment of 24%. Payback period 3.11 years by calculating discounted present value method at 15% discount rate.

Net present value Tk. 120 Lacs at 15% discount rate. Operating profit would be Tk 430, Tk 48314, Tk. 48279, Tk. 530, Tk. 540 Lacs for 1st,
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2nd, 3rd, 4th and 5th years respectively. Estimated financial cost of the Bank @ 14-15% Break-even expected by end of third year Contribution margin ratio 0.21 Project will commence from January 2013.

Profitability of Vegetable Export (Projected) Particulars Oyster Meat Oyster Meat Oyster Meat Oyster Shell Market Asian Europe Local Local Cost (Tk./K 80 85 g) 80 1 C & F Value (Tk./K 155 165 g) 100 5 Profit (Tk./Kg) 75 80 20 4

Break-even Analysis In Oyster production, it is generated through nature. So investment is low here, risk is low here only mentionable thing is that we have to get potential consumer who will consume the product. In break-even analysis, it is very difficult to say that it will come back within particular time. As I previously mention that it may me in break even within eight month due to we have very small investment and we do not have any manufacturing cost except skilled labor cost and other overhead cost.

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Income Statement In Bangladesh Oyster business has not done through proper way. However. Previous and present trend of Oyster export, next five years expected operating profit could be as follows:

Year

Export Quantity

Expected export and Local value Tk. '00 42666 48576 55850 56250 61500 264842

Expected operating profit US$ '00 711 810 931 938 1025 4415

First year Second year Third year Fourth year Fifth year Total

18 (MT) 19.5 20.5 24.5 30 112.5

Sensitivity Analysis In Oyster export business, the sensitivity analysis matrixes with impact of fluctuations of very sensitive issues indicate the followings: Basis of Sensitivity Base Projection 10% Increase in Production Cost IRR (%) 24 6 NPV Tk. '0 00 1200 (780) Pay Back Period 2.11 2.85 Sensitivit y (+) High

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Concluding Remarks The project has conducted the market research and interviews conducted for the purpose of this study, and the financial model developed for the XYZ Oyster House Limited shows that an Oyster aquaculture operation that caters to the high-end half-shell market in Bangladesh and international market arena has the potential for becoming a sustainable and profitable business venture. Oyster is a nature-based resource. Whenever we will start collecting Oyster from coastal area we should keep alert regarding environment pollution and environment hazard. It is very authentic way to learn about business plan and credit always goes to ATDPIIs pocket. It is very easy to show profit, income statement, break-even analysis etc. but hard to implement in practical field. If all the donors, banks and other funding institutions will come up to help the Agripreneur then it will be very easy to keep similarity within myth and reality. The above all figures is projected or estimated figure. May it will deviate in plus or minus way in the practical field. However, this is the very potential area where entrepreneurs can come and open a nature based business and fill-up the gap of food scarcity and earn foreign currency as well.

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