Business project of “Fr Brothers Poultry & Fisheries Ltd”.

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Business project of “Fr Brothers Poultry & Fisheries Ltd”.

  1. 1. A Term paper On “Fr Brothers Poultry & Fisheries Ltd”. Submitted To: Md. Mahfujur Rahman Lecturer Project Management (FIN3133) School of Business Studies Southeast University Submitted By: Name ID Raihan Hossain 2009110000036 Md Fayshal Hossan Miazy 2009110000038 BBA.22nd Batch. Section-B Date of Submission: 10 May, 2012
  2. 2. Dedication Dedicate to our respected parents & Our honorable course teacher Md. Mahfujur Rahman .
  3. 3. Letter of Transmittal 10 May, 2012 To, Md. Mahfujur Rahman Course Teacher School Of Business Studies Southeast University Subject: Submission of term paper on ““Fr Brothers Poultry & Fisheries Ltd”. Dear Sir, With due respect, we are submitting this term paper on “Fr Brothers Poultry & Fisheries Ltd”.” We took help from our course teacher Md. Mahfujur Rahman, from internet and used our creativity. This proposal is only for academic purpose. This is not at all for regular activities. It will be helped our future activities. We tried our best to make this Project as reflective as possible. We appreciate to provide any information or classification if necessary. I therefore, request your favor to accept our term paper.
  4. 4. Yours Sincerely -----------------------------Md Fayshal Hossan Miazy (On behalf of the group member) Acknowledgement At first, we thank to almighty Allah who made us capable to prepare this term paper. Secondly we cordially thank our course teacher Md. Mahfujur Rahman. Who gave us opportunity to prepare this term paper and helped us up to this level best whenever we need him. At last we want to thank my group members for their co- operation and making this possible to submit this term paper on time.
  5. 5. SUMMARY OF THE PROJECT 1. Name of the project : Fr Brothers Poultry & Fisheries Ltd (Poultry & Fisheries) 2. Slogan of the project : “making the challenges of life” 3. : The project is located at Comilla, Barura Location of the project Infrastructures facilities such as electricity, skilled Labor etc. 4. Mailing address of the project : Paiyapara.Barura.Comilla-3500 E-mail: info@frbrothers.com Website: www.frbrothers .com Phone: Cell: +8801671130117, +8801672873071 5. Registered Office: -do-
  6. 6. Management Analysis Corporate Set – up: The project is a Private Limited Company in the name & styles of Fr Brothers Poultry & Fisheries Ltd – poultry & fisheries company. Dilara Miazy is the Chairman of the company. Raihan Hossain Miazy is the vice-chairman of this company and Md Fayshal Hossan Miazy is the managing director of this company. The particulars of Board of Directors of the unit may be seen as under: Name of the Directors % of Share Status Dilara Miazy 30% Chairman Raihan Hossain Miazy 35% Vice-Chairman Md Fayshal Hossan Miazy 35% Managing Director It is expected that we will be able to run the project most efficiently and successfully.
  7. 7. Legal structure of the proposed company: The overall management during implementation and on completion of the project will be vested with the Managing Director. The Managing Director will assume overall responsibilities of running the day to day operation and administration of the company with sufficient executive and financial power. The Managing Director of the project at the moment acquired sufficient knowledge and skills in Industrial & Trading business and has been managing good number of trading and commercial business with excellent reputation. The Managing Director will be assisted by a group of experienced management and technical personnel to be recruited locally. Chairman Vice-Chairman Managing Director Director (Admin.) Finance Director Operation Director
  8. 8. Technical Analysis Land: We selected our plant location at Paiyapara, Barura in Comilla. Our purchase or own land are 3 bigha which price was total Tk.4500000. In this land project bank will be participate 50%, and we contribute 50% amount. Our lease land are 2 bigha that first installment Tk.100000. Building: Taka 7, 00,000 are allocated for establishing building. In this project bank will be participate 70% of Tk.7000000 which is Tk.490000. We participate 30% which is Tk.210000. Imported machinery: For producing chicks, we will import some machineries and equipments from china. We will import 2 egg incubators from China that price $ 9000 per incubator and Tk.1530000. If all cost adds with imported machinery such as import duty, installation & IDCP then total imported machinery price Tk.1742860. In this imported machinery bank will participate 75% of the imported machinery that Tk.1307145. We participate 25% that Tk.435715.
  9. 9. Local Machinery: Our Local machineries amount will be Tk.100000. Vehicle: We will be purchase 3 pickup which is Tk.800000 per pickup and total amount Tk.2400000. Furniture: Our project total furniture making amount will be Tk.100000 Office equipment & Decoration: Our project total Office equipment & Decoration amount Tk.100000. Others Cost: Some others cost will be included such as utility connection cost, pre-operating cost, fire fighting & safety Instruments, consultancy Fees total amount Tk. 134139.
  10. 10. Marketing Analysis Justification of setting up Poultry & Fisheries in Bangladesh: As it is open that there is a severe condition in nutrition sector due to shortage of food in our country, the program of our type might reduce the shortage of food, especially of protein of animal. Through this program it is quite possible to produce a huge amount of protein for our country. So, the program might be stood on the strong ground of justification. This is a sustainable project, as well as an alternative job or working sector for the rural people, especially the rural youths. As there is a big number of employees might be engaged here in this program. It is to mention here that this employment structure is fully for preliminary stage of the project. But it will obviously increase later with progress of the project. The intensive experiences of one of our founder members on poultry, dairy and fisheries project. Hence, the motivational program of the organization, which has made some youths influenced for this programs in this area. Our organization has been engaged to make the rural people benefited from this sector. Many youths already has adopted this program as their businesses in the rural area of Comilla due to our motivational program. But there is no proper treatment center for their birds and fish. So there are big opportunities to operate the poultry & fisheries business in Bangladesh. Our customer will be all categories people in the society especially in rural area. Demand & supply position of the product:
  11. 11. Year Demand Supply Supply Gap (D-S) 2009 2010 2011 2012 2013 2014 3500 5100 7446 10871 15871 23172 2500 3000 4500 6000 8000 10000 1000 2000 2946 4871 7829 13172 Growth rate=P1-P0/P0*100 Growth rate 2009-2010= 46% Growth rate 2010-2011= 46% Growth rate 2011-2012= 46% Growth rate 2012-2013= 46% Growth rate 2013-2014= 46% Supply Gap: Year 2009 2010 2011 2012 2013 2014
  12. 12. Supply Gap 1000 2000 2946 4871 7829 13172 In 2009 supply gap was 1000 in the poultry firm industry, in 2010 supply gap was 2000 that was increased double. In 2011 supply gap was 2946, 2012 in existing supply gap are increasing at 4871. In future at 2013 supply gap will be 7829 and in 2014 it will be increased 13172. Pricing Strategy: The market of Bangladesh is very much priced sensitive. The major portion of the population is living under the poverty line. So before setting the price of our product we had to consider these factor and after analyzing these factor we set our price. The pricing strategy of poultry would essentially be the market penetration pricing strategy. The basic theme of this strategy is to grabs the major market portion by providing product in lower price. This strategy will enable our product to grap the market within a short time. It’s a monopoly market, but we set price in minimum label that everyone can buy it. Distribution Channel: A distribution channel defines how we are going to move products from point of creation to points of consumption, in a cost-effective manner. The effectiveness of distribution coverage and practice is of paramount importance in achieving the desired poultry, egg & fisheries sales. We
  13. 13. will distribute our product with self dealers. We will use direct dealer to the retailer. We are the manufacture or producer, if our sales will increase in future than we think for outside dealers. Manufacturer/producer-Wholesaler-Retailer-Customer List of Competitors: 1. Title Phenix Poultry Ltd. Address Noorjhan Sharif Plaza (3rd floor), 34 Purana Paltan City Dhaka - 1000 Country Bangladesh Telephone +880-2-9554768, 9554638, 9553265, 01711-626226 Fax +880-2-9562501 2. Title S.A. Rahman Poultry & Dairy Farm Ltd Address Asif Mansion (6th Floor), 77/1 Kakrail City Dhaka - 1000 Country Bangladesh Telephone +880-2-8311016 Fax +880-2-9347193 Title Salbon Poultry & Fisheries 3.
  14. 14. Address Sonartori Tower (13th level), 12 Sonartory Road City Dhaka - 1000 Country Bangladesh Telephone +880-2-8622996, 8624627 4. Title Kazi Firms Ltd. Address House # 84 (4th floor), Satmosjit Road, Dhanmondi R/A City Dhaka - 1209 Country Bangladesh Telephone +880-2-9123432, 8127033, 9128062 Fax +880-2-9122842 5. Title Brothers Poultry Firm Address 580, Kajipara Rokaya Saroni Mipur City Dhaka - 1216 Country Bangladesh Telephone +880-2-8012857, 01711-528945
  15. 15. Fr Brothers Poultry & Fisheries Ltd Fixed cost of the Business Tk. Items Local Cost Foreign Cost Total 4500000 4500000 Lease Land (2 bigha) 100000 100000 Building 700000 700000 Land (3 bigha @ tk.15 lac/bigha ) Imported Machinery (2 incubator @ $ 9000 1$=85) Import Duty (10%) 1530000 ---153000 1530000 153000 5000 5000 54860 54860 100000 500000 2400000 2400000 Furniture 100000 100000 Office Equipment & Decoration 100000 100000 Utility Connection Cost 50000 50000 Fire Fighting & Safety Instruments 10000 10000 Pre-operating Expenses 25000 25000 Consultancy Fees (.50%) 51139 51139 Installation IDCP (interest during construction period) (13%) Local Machinery Vehicle (3 pickup @ 8 lac/pickup) Total 10278999
  16. 16. Fr Brothers Poultry & Fisheries Ltd Financing Plan Items Bank Installment Client’s Equity Total Amount % Amount % Amount % Land 2250000 50% 2250000 50% 4500000 100% Building 490000 70% 210000 30% 700000 100% Imported Machinery 1307145 75% 435715 25% 1742860 100% Local Machinery 500000 100% 500000 100% Vehicle 2400000 100% 2400000 100% Others 43639 100% 429045 100% Total Tk. 4047145 6231854 10278999
  17. 17. Fr Brothers Poultry & Fisheries Ltd Means of Finance Tk. % Bank Installment 4047145 39.37 Client’s Equity 6231854 60.63 Total 10278999 100 Fr Brothers Poultry & Fisheries Ltd Debt-Equity Ratio Debt-Equity Ratio 39.37: 60.63
  18. 18. Fr Brothers Poultry & Fisheries Ltd Syndicate Finance Total Bank Installment Tk. 4047145 Amount (Tk.) % Bank Standard Chartered Bank (LA) 2225930 607071 55% 15% Brac Bank (CA) 607072 15% Dutch-Bangla Bank Limited (CA) 6070712 15% 4047145 100% The City Bank Total
  19. 19. Fr Brothers Poultry & Fisheries Ltd Sales Estimate /Revenue Items Quantity Unit Price Poultry 50000 ps Tk.120 6000000 Egg 240000 ps Tk. 6 1440000 Fish 8 Metric Tons Tk. 70000 Total Amount (Tk.) 560000 8000000
  20. 20. Fr Brothers Poultry & Fisheries Ltd Cost of Raw Materials Items Quantity Unit Price Total Broiler & layer chicks Fish Feed Tk. 34000 1700000 Tk. 10 350000 20000 ps Tk. 40 800000 8 Metric Tons Egg 50 Metric Tons 35000 ps Poultry & layer Feed Tk.36000 288000 200000 Medicine Total 3338000
  21. 21. Fr Brothers Poultry & Fisheries Ltd Wages & Salaries Particulars Quantity Salary/Month - Salary/Year - Firm Manager - Supervisor 1 Quality Controller - - Skilled Labor 5 Tk. 5000 300000 Helper 1 Tk.3500 42000 Peon - Total 72000 Tk.6000 - - - 414000
  22. 22. Fr Brothers Poultry & Fisheries Ltd Administrative Expense Particulars Quantity Salary/Month Salary/Year General Manager - - - Accountant 1 Tk.10000 120000 Marketing Executive 1 Tk. 8000 96000 Computer operator - - - Peon - - - Total 216000
  23. 23. Fr Brothers Poultry & Fisheries Ltd Depreciation Schedule Items Value of Assets % Amount (Tk.) 0 4500000 0% 700000 5% 35000 1530000 10% 153000 Local Machinery 500000 10% 50000 Furniture 100000 20% 10000 2400000 20% 480000 Land Building Imported Machinery Vehicle Total 728000
  24. 24. Fr Brothers Poultry & Fisheries Ltd Utility Cost Items Monthly Cost Yearly Cost Electricity Bill Tk.5000 60000 Gas Bill Tk.3000 36000 Water Bill Tk. 500 6000 Telephone Bill Tk. 1000 12000 Internet Bill Tk. 500 6000 Fuel Cost Tk.1000 12000 Total 132000
  25. 25. Fr Brothers Poultry & Fisheries Ltd Costs of Goods Sold Items Amount (Tk.) 3338000 Raw Materials Wages & Salaries 414000 Administrative Cost 216000 Depreciation 728000 Utility Cost 132000 60000 Maintenance Cost Total 4888000
  26. 26. Fr Brothers Poultry & Fisheries Ltd Working Capital Estimate Items Days Amount (Tk.) 60 667600 Work in process 3 34380 Finished goods 15 171900 Receivable 7.5 85950 Raw Materials Total 960830
  27. 27. Fr Brothers Poultry & Fisheries Ltd Financial Expenses & Installment Items Bank loan amount Interest rate/year Total Installment 4047145 10 years 404714 Term loan interest 4047145 15% 607071 960830 15% 144125 Working capital interest 1155910 Total financial expenses & installment
  28. 28. Fr Brothers Poultry & Fisheries Ltd Earning Forecast Items Total Sales Revenue 8000000 Less. Cost of goods sold 4824000 Gross Profit 3176000 Less. Administrative Expenses 210000 Operating profit- 2966000 Less. Financial Expenses & Installation- 1155910 Net Profit before tax 1810090 Less. Income Tax Net Profit after Tax (Tax Holyday) - 000 1810090
  29. 29. Network Technique Task Predecessor Time Land--- (A) ------------------------------------------------------------------- -------- 30 Lease Land--- (B) ----------------------------------------------------------- -------- 20 Building---(C) --------------------------------------------------------------- A, B 90 Imported Machinery--- (D) ---------------------------------------------- A 60 Import Duty---- (E) -------------------------------------------------------- D 10 Installation--- (F) --------------------------------------------------------- D, E 5 IDCP---- (G) ----------------------------------------------------------------- D, E, F 10 Local Machinery--- (H) --------------------------------------------------- C 10 Vehicle--- (I) ---------------------------------------------------------------- C, D 10 Furniture--- (J) ------------------------------------------------------------- C, H 30 Office Equipment & Decoration--- (K) ------------------------------- F, H 15 Utility Connection Cost--- (L) ------------------------------------------ C 30 Fire Fighting & Safety Instruments--- (M) --------------------------- C, L 10 Pre-operating Expenses--- (N) ------------------------------------------- M 10 Consultancy Fees--- (O) -------------------------------------------------- N 10
  30. 30. Fr Brothers Poultry & Fisheries Ltd Network Technique Critical Path: A+C+K+M+N+O=30+90+30+10+10+10=180 Days
  31. 31. Fr Brothers Poultry & Fisheries Ltd Gantt chart Task 0-30 30-60 60-90 90-120 120-150 150-180 A B 20 C D E F G H 100 100 105 105 115 130 I 130 J 130 K 130 160 145 L M 160
  32. 32. 160 N 170 180 O Social Cost Benefit Analysis Fr Brothers Poultry & Fisheries Ltd Social Cost Benefit Analysis The proposed poultry and fisheries project is expected to have certain social cost benefit criteria’s. Its requirements along with the cost and benefit from private angle are discuss below. The project will require the following during the initial stage: 1) Machinery to be Imported & costing $18000 2) Local Machinery costing 1 lac. 3) 40000 ps broiler chicken produced and made available to the project at Tk. 120 per pieces. 4) 170

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