AQUACULTURE.docx

MID II ASSIGNMENT
Entrepreneurship
SESSION 2022
SUBMITTED TO :- SUBMITTED BY :-
Dr. Anil kumar kashyap DeepeshRajak
ENROLL.NO – Y20282015
MBA III SEM

AQUACULTURE
Company name :-AquaFarm
Location - Sagar

TABLE OF CONTENTS
Executive summary
Company overview
Feasibility area of business
Problem and solution
Market Size
Business Model
Product and services offer
Market plan
Financial planning

Executive summary
 The global population is expected to reach 9.6 billion by Yr. 2050 and as the demand for animal
protein is increasing year by year it is a challenge to provide quality protein by safeguarding its
natural resources for future generations. In this context, aquaculture plays a key role in
promoting health by providing animal protein as well as generating employment and economic
growth. Biofloc Technology (BFT) is considered as new “blue revolution” since nutrients can
be continuously recycled and reused in the culture medium, benefited by the minimum or zero-
water exchange. BFT is an environment friendly aquaculture technique based on in-situ
microorganism production. Biofloc is the suspended growth in ponds/tanks which is the
aggregates of living and dead particulate organic matter, phytoplankton, bacteria and grazers
of the bacteria. It is the utilization of microbial processes within the pond/tank itself to provide
food resources for cultured organism while at the same time acts as a water treatment remedy.
Thus, this system is also called as active suspension ponds or heterotrophic ponds or even green
soup ponds.
 AquaFarm Company is a new company involved in rearing fishes for selling white meats. The
main aim of this business is to contribute to national development and food security. This company
will operate its activities in Madhya Pradesh. This business will be located in this area because
there is availability of sufficient water to implement this business.
 The primary promoter of AquaFarm Company is General compay management
Manager and consulting the business’ advisors so as to operate effectively and efficiently. The
company management structure includes the General Manager, an accountant, the veterinary, the
procurement officer, the motor van driver, the pond builders and keepers, and the guardians.
 The legal structure of AquaFarm Company is a Company; business owner level of education
is A0 in Education. The business owner had the following trainings: trainings on Entrepreneurship
taken place at National Fisheries Development Board Department of Fisheries.

COMPANY OVERVIEW
AquaFarm is company which produce varity of fishes . AquaFarms will not beat the competition. We
are aware that we cannot compete on price only. That is why we prefer to focus on assessing customer
expectations, and our core competencies, decide which expectations we can reasonably meet, then make
sure to constantly exceed them wholeheartedly. Thus, we will be able to maintain and increase the level
of customer satisfaction, as a strong foundation for future growth. The entire delivery process will be
conducted through five main food-catering online services that have excellent references in the Local
Bay area, and we can choose to be one of their participating suppliers. In this way, we are able to save
on delivery costs and logistics, and simultaneously use the high Internet exposure of our partners. In
addition, delivery people will use their own vehicles, so the business will not have to purchase delivery
vehicles or hire drivers.
Following is the Goal , Vision, Mission and Objective of the project
Goal Doubling the farmers income with Trust on Allied Activities
Vision Economic sustainability of Farmers with Trust on Allied
Aacitivities
Mission Introduce , propagate and support in Intergrated Manner
Objective • Increasing Revenue Sources of Society and Farmers • Regular
Source of Income • Optimum Utilization of Local Available
Resources • Improving Risk Bearing Capacity of Farm
SWOT Analysis of the Project :-
Strength
 Good economic return
 Good nutrient management
 Availability of market in the local area
 Employment opportunities inn the local
area
Weakness
 Need to maintain a better quality of water
in a regular way.
 Those perrons who will handle the farm
should be good trained or technically
equipped.
 Need to maintain low mortality rate
Opportunity
 Proper utilization of local resources
Threats
 Need to do a proper disease management
 Environmental vulnerability

FeasibilityAssessmentof the Project:-
Parameter Assessment
Technical Feasibility • Renovation of pond and construction of poultry
shed will be done from locally available
resources.
• Good quality water availability & regular
supply of water at the project area. This water
can be used to fill up required quantity of water
in pond.
• Good quality fish seed available in the Sagar
district so fingerlings will be purchased from
Sagar hatchery and will be stocked at pond.
Chicks are also available at district head quarter
so that will be used to rear at poultry shed.
• Good quality poultry and fish feed available in
the local area.
Commercial Feasibility • Huge consumption of fish and meat in the
Bihar state.
• Andhra Pradesh and West Bengal mainly
supplying fish variety to Bihar.
• Production could be sold the local market
itself.
• No need to invest more on logistics and cold
chain part as demand would be more from
surrounding area itself.
Organizational Feasibility • • Society is involved in the fish rearing activity
from last 7 years.
• Board of Director of the society are well aware
about fishing activity.
• Society is also having animal rearing farm and
fertilizer selling unit.
• Society having 12 acres of fish pond and out of
those 2 acres will be used for Integrated Fish
Farming Activity.

• Successful implementation other line business
activity like animal rearing farm, fertilizer unit
gives confidence that they will be able to handle
poultry unit too.
• Board of Director are confident and eager to
expand their business activity.
• Human resources have been trained by KVK
and exposure visit also has been completed so
they are confident to implement project
successfully.
Marketing and Viability • There is no Integrated Fish Rearing Unit in the
surrounding area so it gives them edge than the
others to capture the market
. • Huge demand for the fish and meat in the
local area itself.
• They can supply fish and meat on the regular
basis.
• Earlier experience of society in the Fish rearing
gives confidence that they will be able to sustain
their business activities.
Financial Viability • Financial analysis of the Fish Rearing Unit are
as follows:

PROBLEM & SOLUTION
THE PROBLEM
Aquaculture in problem soils In India about 2.73mha of salt affected soils exist, which are unfit or
marginally fit for agriculture. There are large tracts of salt affected land in the semi-arid and arid
eco-regions of northern plains and Central High lands in the States of Haryana, Rajasthan, Uttar
Pradesh and Gujarat with surf ace and sub-soil brackish water. These areas can be used for promoting
brackish water aquaculture. Since the early eighties, development of brackish water fish culture has
gained prominence. However, a suitable environmental method is required for the disposal of the
saline water. In most situations, this water can be intercepted and pumped through a series of tanks
or ponds in which marine finfish can be cultured. The farming of commercially important aquatic
species is considered to be a better option than agriculture for utilizing vast inland surface and
subsurface saline water resources which are mainly distributed in semi-arid and arid regions of
Rajasthan, Haryana, Punjab and Uttar Pradesh. In 2013, CIFE Rohtak center demonstrated Tiger
shrimp culture technology in inland saline waters in the farmer’s field with the support of NABARD-
SDC Rural Innovation Fund. Then in 2014, 3 farmers of Haryana adopted Pacific white shrimp
culture technology in inland saline waters in a total area of about 12 acres. In 2015, about 25 farmers
took up the technology in a

Issue :- State level policies within national policy framework with need based local specific adaptability
Rationale/ background:- Fishery is a state subject under the constitution of India but very few states
have dedicated bodies for the development and marketing of fish produced in the state. Lack of uniformity
across states in terms of Closed seasons, Legally allowed fishing gears, Destructive fishing methods, Inter-
state conflicts regarding landing, Poor compliance to fishing regulations etc creates problems in
Monitoring, Control & Surveillance (MCS) of marine fishing. Lack of guidelines beyond territorial waters
- (12 and 200 nmi of the EEZ)
Suggestedinterventions:- 1) State level policies within national policy framework with need based local
specific adaptability encompassing zonal and depth regulations, fleet size/capacity regulation including
freezing fleet strength, seasonal regulations, fish size/ mesh size regulations, spatial management through
MPA/ fish refuges may be framed in consultation with maritime state governments. 2) Market/Processor
level disincentives for undersized fish to be introduced and enforced. 3) Encroachments by foreign vessels
especially in island territories to be arrested by framing policies and its strict implementation and
surveillance by concerned authorities
Issue :- Post harvest handling and marketing
Rationale /background :- More than 70% of the fish produced in the country is utilised by the domestic
market, while the rest is processed and exported. The landing centres serve as primary markets and the
wholesale markets situated at a distance away from actual fish landing centers act as secondary markets
and retail markets are the tertiary markets. Large number of intermediaries is involved before fish reaches
the hands of ultimate consumer. Conditions of monopsony and oligopoly characterize the fish marketing
structure in India and hence fishermen do not get advantage of the high price prevalent in the consumer
markets. Difficulty in maintaining the quality of fish, lack of proper infrastructural facilities for storage,
preservation, processing and transport at various stages of marketing, lack of information on fish price
and production are other problems being faced in the post harvest sector.
Suggested interventions :- 1) Improving the hygienic standards and handling facilities at landing centres
and market infrastructure including efficient management system.

2) Good fish handling practices on board, landing centre and marketing may be made mandatory
3) Fish producer companies/ cooperatives may be promoted and supported for organised marketing
4) An efficient Price Policy of fish to ensure the services of middlemen at minimum cost may be
developed.
5) Regulation of fish marketing through institutional arrangements.
Issue:- Lack of diversified farming techniques
Rationale /background:- The farming operations in the country is mainly under small holdings which
are not using scientific methods leading to unorganised haphazard development.
Suggestedinterventions :- Family farming and homestead models to promote small scale cage
farming, integrated multi trophic farming (IMTA) and ornamental rearing.
Issue :- Lack of indigenous feed
Rationale /background:- 60-70%of the recurring cost is for feed in any aquaculture unit and in brackish
water shrimp farming the farmers are relying on compounded feed with a price range of ` 45- 50 per Kg. Need
to encourage feed formulations using locally available ingredients.
Need to encourage feed formulations using locally available ingredients
Suggested interventions :- Subsidy available under Blue revolution schemes may be availed by
entrepreneurs/ farmers for setting up of feed mill for the production of cost effective indigenous formulated
feed which uses locally sourced ingredients catering to location specific farming areas need to devised

TARGET MARKET
MARKET SIZE & SEGMENTS
The India aquaculture market reached a volume of 11.40 Million Tons in 2021. Looking forward,
IMARC Group expects the market to reach 18.40 Million Tons by 2027, exhibiting a CAGR of
8.20% during 2022-2027. Keeping in mind the uncertainties of COVID-19, we are continuously
tracking and evaluating the direct as well as the indirect influence of the pandemic. These insights
are included in the report as a major market contributor.
Aquaculture or aquafarming, refers to the production of aquatic organisms, such as freshwater fishes,
crustaceans, mollusks, etc., under partially controlled conditions. Some of the common types of aquaculture
include fish farming, shrimp farming, oyster f arming, algaculture, mariculture, etc. Aquaculture also includes
the production of ornamental fishes to support recreational and commercial fisheries. India is traditionally a
freshwater aquaculture country with a historical record of fish farming in priva te and community ponds. The
vast coastal area of India offers immense opportunities for aquaculture in both marine and inland waters.

India Aquaculture Market Trends:
In India, the growing consumption of fish, owing to numerous health benefits in enhancing
digestion, improving skin health, boosting metabolism, etc., is primarily driving the aquaculture
market. In line with this, the shifting consumer preferences from high-calorie meat products towards
a protein-rich diet, including fish, shrimps, mollusks, etc., are also propelling the market growth.
Additionally, the rising number of hatcheries, feed mills, and processing plants is further
augmenting the aquaculture market in the country. Moreover, the Indian government is launching
numerous initiatives, such as Pradhan Mantri Matsya Sampada Yojana, to establish a comprehensive
framework and reduce infrastructural gaps in the fisheries sector. In line with this, the introduction
of various awareness programs for educating fish farmers to enhance their production volume and
yield quality is also bolstering the aquaculture market in India. Additionally, the escalating
prevalence of numerous foodborne illnesses caused due to pathogens present in conventionally
cultured fishes is further catalyzing the demand for organic variants. Apart from this, several key
players are adopting innovative solutions for the domestication and in-house cultivation of
ornamental fish species in artificial marine-like environments for recreational and commercial
purposes. Moreover, the emergence of sustainable cultivation systems, which are aimed at not
disrupting the ecosystem, protecting biodiversity, reducing pollution, etc., is expected to drive the
India aquaculture market in the coming years.

Business Model or Revenue Model
Business Model for the planned project will be is as follows:
Particulars Comment
Product Raw Fish . If there is good demand for frozen fish and
meat then we will be open to add product line in our
business activity.
Market Segment Local & Surrounding area. To improve the quality of
the product ice box will be used to keep it in the
required temperature. We will also keep the database of
customer and will divide them in the different groups to
make a strong marketing strategy.
Marketing Chain We will identify Local Retailer and Distributor to sell
our product. We will make a good scheme to sell our
product so local retailer and distributor will push our
product in the market.
Price Price will decide on the local market, availability of
product and demand for the product. Pricing of
surrounding area will be analysed to keep the product
competitive.
Promotion Promotion of the product will be done by pamphlets,
advertising in the local hut. We will try to create a
brand of our product by providing good quality product,
giving good service to customer and competitive
pricing. We will keep the mobile database of each
customer so we will send the messages to them
whenever fresh harvesting is available with us.

PRODUCT OR SERVICE OFFERINGS
PRODUCT OR SERVICE
One of the most important factors to get started with fish farm process is the selection of the right fish
breed for farming. You need to keep in mind that it is not possible to breed all types of fish in the farm.
 In India there is a great demand for certain varieties of fish like Rohu, Mureli, Katla, grey shark
and tuna. Apart from this Hisla fish is also in great demand.
 One of the main benefits of selecting these varieties of fish is that they are easy to breed and can
easily get adopted to the climatic and water conditions.
 So the moment you make a selection of these fishes it is obvious that you may be able to generate
health profit from the business. Apart from this it is also possible to easily find these varieties
in the Indian market.

MARKETING
MARKETING PLAN
 In Aquaculture business there is no need to do marketing because in this business demand is
high in northern part of India.
 In marketing there is need to find out distribution channel and mediator who buy product in bulk
 Marketing of fish involves all the activities in the flow of fish or fish products from the farmer
to the consumers. The target of marketing is usually to close the gap between the areas of fish
scarcity and abundance with profit. There are certain characteristics and elements that are
common with the marketing of fish products which demand peculiar skills for their operation.
 Labelling: This is the act of attaching a piece of paper, fabric or plastic to a bag, cans, nylons or
cartons containing preserved fish to identify, describe or give instructions about the content. The
paper, fabric or plastic is known as the label. Some label contains the price of the fish in the can,
bag or container.
 Storage: This is the manner in which processed fish is kept and the accommodation of such fish
before sale. Dry fish products are better stored in cool and dry environment. Fresh fish are kept
in freezer to control the temperature for the growth of spoilage organism in the fish. Large quantity
of fish is usually stored in very big freezer commonly known as “cold room”. Storage of fish
product is important because it prevent over flooding of market with fish which may result in
reduction of market prices.

FINANCIAL FORECASTS
Cost estimates of Biofloc Unit with 7 Tanks
S.No Component Nos Cost (Rs) Total (Rs in
lakhs)
Capital cost
1 Setup of Tarpaulin/Fibre tanks(15,000
Litres capacity)
7 25,000 1.75
2 Shed material and accessories fixing
charges
200 m2 120000 1.20
3 Water supply borewell(3HP) 1 100000 1.00
4 PVC pipe fittings for air, water flow LS 75000 0.75
5 Nets and accessories 5 3000 0.15
6 One Blower (1 HP), Air stones and
other accessories
1 30000 0.30
7 Electrification LS 10000 0.10
8 Power generator(2 KVA) 1 45000 0.45
9 Weighing balance 1 5000 0.10
10 Miscellaneous expenses 0.20
Total Capital Cost 6.00
*Input cost for one crop
11 Seed cost, Feed cost, Probiotics, Test kits etc . 1.50
Total Input cost (per one crop) 1.50
Grand Total 7.50
input cost may vary depending on stocking density
Economic feasibility (one crop) from 7 Tanks
Sl Components Amount (Rs in lakhs)
1 Capital Cost 6.00
2 Operational Cost 1.50
3 Total project Cost 7.50
4 Gross income per crop 5.46
5
Gross income at the end of one crop after deducting the
recurring cost for the 2nd crop
3.96
6 Gross income from the 2nd crop 5.46

7 Gross income at the end of 2nd crop 9.42
8 Depreciation/maintenance @ 15% of capital cost 0.975
9 Interest @ 12% of TPC 0.90
10 Repayment @ 1/7th of the TPC 1.07
11 Recurring cost for the next crop 1.50
12
Net profit at the end of 2nd crop
9.42- (0.975+0.9+1.07+1.50)
4.975
Model Cost Calculation
 Model Capital Cost Break up for Biofloc with 50 tanks of 4m dia and 1.5 m height
S.No Component Nos Cost
(Rs)
Total (Rs in
lakhs)
Capital cost
1 Setup of Tarpaulin/Fibre tanks(15,000
Litres capacity)
50 25,000 12.50
charges
1600 m2
600/m2
9.60
3 Water supply bore well and pump (2
nos. of 3 HP)
- 150000 1.50
5 Nets and accessories 50 3000/tank 1. 50
6 Blower (1 HP), Air stones and other
accessories
8 30000 2.40
Sub Total 35.50
(*input cost may vary depending on stocking density)
10 Seed @Rs.4/- for 50000 2.00
11 Feed cost @Rs.30/kg for 24 T 7.20
12 Probiotics, carbon source, test kits, electricity etc. 5.30

Sub total 14.50
Grand Total 50.00
 Model Capital Cost Break up for Biofloc with 25 tanks of4m dia and 1.5 height
S.No Component Nos Cost (Rs) Total (Rs in
lakhs)
Capital cost
1 Setup of Tarpaulin/Fibre
tanks(15,000 Litres capacity)
25 25,000 6.25
charges
800 m2
600/ m2
4.80
3 Water supply bore well and pump (2
nos. of 3 HP)
1 150000 1.50
5 Nets and accessories 25 3000/tank 0.75
6 Blower (1HP),Air stones and other
accessories
4 30000 1.20
Sub Total 20.00
(*input cost may vary depending on stocking density)
11 Seed cost @ Rs.4 for 25000 1.00
12 Feed cost @ Rs.30/kg for 12 T 3.60
13 Test kit, carbon source, electricity charges etc. 0.40
Sub Total 5.00
Grand Total 25.00

 Model Cost Break up for Construction ofBiofloc ponds for Brackish water/ Saline/ Alkaline
areas including inputs ofRs. 8 lakhs/0.1Ha
Capital cost
S.No Component Total (Rs in
lakhs)
1 Earth work excavation and construction of bund 0.50
2 Polyethylene lining 1.50
3 Inlet, outlet and central drainage system 0.50
4 PVC pipe fittings for air, water flow 0.50
5 Pump house-100sqf 1.00
6 Pumps-1 nos. 3 HP 0.30
7 Aerator-4 nos. @Rs.25,000 0.70
8 Air Blower 0.30
9 Aeration tubes 0.30
10 Generator set 10 KVA 2.00
11 Net, Imhoff cone, weighing balance, water testing kits and other
accessories
0.30
12 Bio security Measure-Bird net, crab net 0.20
13 Electrification L.S. 0.50
14 Watchman shed-10sqf 1.00
13 Miscellaneous 0.40
Total 10.00
Input Costs
Sl. No Components Total Amount (in
Lakhs)
1 Seed cost @ Rs.0.40/pc for 300000 1.20
2 Feed cost @ Rs.70/kg for 6MT 4.20
3 Electricity and fuel 1.00
4 Harvesting charges 0.20
5 Miscellaneous/transportation etc 0.60
Total 8.00

Grand Total: Rs. 18 lakhs
 Model Cost Break up for Construction of Biofloc ponds for Freshwater areas including inputs of Rs. 4
lakhs/0.1Ha
Capital cost
S.No Component Total (Rs
in lakhs)
1 Earth work excavation and construction of bund 0.50
2 Polyethylene lining 1.50
3 Inlet, outlet and central drainage system 0.50
4 PVC pipe fittings for air, water flow 0.50
5 Pump house-100sqf 1.00
6 Pumps-1 nos. 3 HP 0.30
7 Aerator-4 nos. @Rs.25,000 1.00
8 Air Blower 0.30
9 Aeration tubes 0.30
10 Generator set 10 KVA 2.00
11 Net, Imhoff cone, weighing balance, water testing kits and other
accessories
0.30
12 Bio security Measure-Bird net, crab net 0.20
13 Electrification L.S. 0.50
14 Watchman shed-10sqf 1.00
13 Miscellaneous 0.10
Total 10.00
Input cost
Sl.
No
Component Total Amount (In Lakhs)
1 Seed cost @ Rs.3/pc for 10500 0.30
2 Feed cost @ Rs.30/kg for 10MT 3.00
3 Electricity and fuel 0.70

Total 4.00
Grand total: Rs.14 Lakhs
Biofloc Scheme under PMMSY
Beneficiary oriented sub-components and activities
S.no. Sub-component and activities Unit
Unit cost
(Rs.
Lakhs)
Page No.
A Enhancement ofproduction and productivity
1 Development ofinland fisheries and aquaculture
1.11 Construction of biofloc ponds for brackish
water/saline/alkaline areas including inputs of rs.8
lakhs/ha
0.1 ha 18.00 85-86
1.12
Construction of biofloc ponds for freshwater areas
including inputs of rs.4 lakhs/ha
0.1 ha 14.00 86-87
5 Technology infusion and adaptation
5.1
Biofloc (50 tanks of4m dia and 1.5 high)
culture system.
(No) 50.00 120
5.2
Biofloc culture system (25 tanks of4m dia and
1.m
(No) 25.00 120
5.3
Biofloc (7 tanks of4m dia and 1.5 high) culture
system
(No) 7.50 121

How to avail subsidy?
 Beneficiary needs to submit the project report (PR) along with required documents
including documentary evidence of availability of requisite land (either own/registered
lease document to the concerned District Fisheries Office for further process. In case of
leased land, proper registered lease document for a period of 7(seven) years from the date
of submission of SCP will have to be submitted.
 Project report (PR) with full justification & technical-economical details including the
species to be cultured, capital cost and the recurring cost involved. Project report should
also contain details of anticipated direct & indirect employment generation to local
population, enhancement of fish production, specific time lines for implementation of
project etc has to be furnished to DFO.
 In case of Biofloc in Pond, the governmental assistance is restricted to (a) 2 units of 0.1
ha per individual beneficiary, (b) 2 units of 0.1 ha multiplied by the number of members
of the group/society with a ceiling of 20 units of 0.1 ha per group/society in case of Groups
of fishers and fish farmers i.e. fisher SHGs/Joint Liability Groups (JLGs)/Fisher
Cooperatives etc. or those undertaken in a cluster/area approach.
 In case of Biofloc in tank, governmental assistance will be restricted to one unit of large
or one unit of Medium or 1 of small BFT for individual beneficiary. Governmental
assistance will be restricted to 2 units of large or 3 unit of
Medium or 4 units of Small BFT per group/society in case they are taken up by Groups
of fishers and fish farmers

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