The document proposes an Individual Quick Freezing (IQF) plant for freezing selected Bangladeshi fish. Key details include: - The plant would have a production capacity of 4,777 metric tons per year and freeze fish like pangus, tilapia, barramundi, and mud crab. - Raw materials, machinery, manpower needs, and financial projections are presented, showing the plant could be profitable with an IRR of 40.55% and payback period of 3.03 years. - A SWOT analysis finds strengths in high quality offerings and opportunities in raw material availability and incentives, but weaknesses in country image and threats from established brands. The conclusion recommends the project as frozen

1. Individual Quick Freezing (IQF) PlantIndividual Quick Freezing (IQF) Plant
for Selected Bangladeshi Fishfor Selected Bangladeshi Fish
–– A Viable Business PlanA Viable Business Plan
Dr. Sreekanta Sheel
B.Sc. Agril. Engg - with major in Food Technology
M.Sc. (Agril. Engg) in Food Technology,
Ph.D in Food Technology
Logistics (Transportation and Storage) Expert
SCDC, NATP, Hortex Foundation

2. IQF (Individually Quick Frozen) Food
•IQF (Individually Quick Frozen) equipment is used to
rapidly freeze individual pieces of fish before packaging.
•This process helps to preserve taste, texture and
nutritional value in food.
•The reasons for availability of effective demand
i) hygienically processed and packaged
ii) properly retention of quality parameters
in the packaged product
iii) recent advancement of technology in
this field.

3. Land and Location of the Project
To be established where all the infrastructural
facilities like power, water, gas and related other
facilities are available.
Raw materials availability and good communication to
the sea port
Building and Other Civil Cost
The civil construction, 15000 sqft built area with prefab,
high quality roofing with adequate civil-structure.
The construction includes main production plant, raw
materials store, finished goods store, packaging
materials store, R&D, QC laboratory, office rooms,
guard room, conference room, toilet, boundary wall etc

4. Production Capacity
•The total production capacity of the plant is 4777 MT
per year at 100% capacity utilization with working 12
hours per day and 300 days per year.
•It is assumed that the plant will increasingly operate
at 50, 55, 60, 70 and 80 percent capacity in its 1st
,
2nd
, 3rd
, 4th
and 5th
. year and beyond respectively.

5. The unit price and annual production capacity of the plant at
100% capacity utilization:
Annual Production Capacity
Item of Product Quant
ity
(MT)
No. of
Package
(No. in
'000')
Pack
Size
(gm)
Average
Factory Sale
Price/kg
(Tk.)
Total Factory
sale Price
(Tk. In
“000”)
1. Frozen Pangus 1404
140 10000
400
561600
2. By-product of pangus (scrap &
vicera) 1807
45 40000
50
90344
3. Frozen Tilapia 216
22 10000 400 86400
4. By-product of tilapia (scrap &
vicera) 278
7 40000 50 13899
5. Frozen Barramndue (Coral) 432
43 10000 1120 483840
6. By-product of Barramndue
(scrap & vicera) 432
11 40000 50 21600
7. Frozen Mud Crab
108
11 10000 400 43200
Total Revenue 4677 279 130,08,83

6. Sources of Raw Materials
All the quality fish (Pangas, Tilapia)
and Mud crab are available in the
country. Also, there is a good catch of
coral fish.
Production plan for the demanded
frozen fish and crab will be prepared
on the basis of monthly availability of
the commodities.
The project shall not purchase any fish
or crab from abroad.

7. A. Local Raw Materials Requirement (at 100% capacity
level)
Raw Materials
Description
Total
annual
quantity
(MT)
Unit cost
per MT
(Tk."000")
Total
amount
(in Tk.
"000")
1.Pangus 3663 120 439513
2.Tilapia 563 120 67617
3. Barramndue (Coral) 972 400 388800
4. Mud Crab 135 160 21600
5. Cartoons L.S. 500
Total (Local Raw
Materials) 5333 918030
Requirement of raw materials

8. Requirement of Machinery and Equipments
Name Amount (Tk. In "000")
1. IQF machinery, 1No. 32096
2. De-skinning machine, 2 no. 3640
3. Flake ice machine, 2 no. 2275
4. Scrap recovery unit (fish meat) 2275
5. Conveyor system 1183
6. Vacuum pack machine-twin chamber (Vac Pack) 6006
7. Utility materials: 4550
8. Water treatment plant (R/O Water Purify System), 1 No. 2548
9. Diesel generator (for back up) 4550
10. Transformer 1365
11. Blast freezer 2730
12. Refigerator 1365
11. Laboratory equipment 2275
0
Total for Imported Machinery (A) 66858
A. Imported Machinery :

9. Requirement of Machinery and Equipments
Name
Amount
(Tk. In "000")
1. Deep Tube Well, 2 No. 2275
2. Cold Storage 3822
3. Air conditioning system 5460
Total for Local Machinery (B) 11557
Grand Total for Machinery and
Equipments (A+B) 7,8415
B. Local Machinery :

10. Requirement of Transports
Transport: No.
Unit
Price
Total Price
('000')
1. Sedan car 2 2300 4600
2. Normal Container Van
(Cap. 5 Ton) 2
3500 7000
3 Refer Van 2 5700 11400
TotalTotal
2,30002,3000

11. Manpower
i). General, Administrative, Marketing and
Sales Personnel, 35 persons
ii) Technical, 24 persons
iii) Worker 55 persons
Total Manpower , 114 persons

12. Flowchart for frozen fish
Purchasing of Fish
Factory Gate Inspection
Washing
Pre-washing
Preparation
(Peeling, De-
scrapping, Filleting)
Bulk Storage
Packaging
Freezing
Distribution
FrozenFishLine

13. Good Aquaculture Practice (GAP)
Good Manufacturing Practices (GMP)
Quality Management Principles (ISO 9000:2000)
Hazards Analysis and Critical Control Point
(HACCP)
Quality Assurance

14. Organization Chart of the Enterprise
Technical Coordination & Monitoring
Deptt.
Manag
er
Export
Marketing
G
M
Secti
on
Mana
ger
TopManagement
Plant
Man
ager Plant Manager
Board of Directors
General Manager
Food Technology
Consultant
CEO/
Managing Director
Chairman
Manager
(Marketing)
Manager
(Admin)
R & D , Training,
Monitoring
and Promotional
Publication
Manager
(Quality
Assurance)
Manager
(Engineering)
Manager
(Production)
Domestic
Marketin
g
Admin &
Personnel
Ware House
and Cold
Storage
Fish
Freezing Factory
Machinery
Utility
Services
Manager (Materials
Purchasing & Contract
Growing)
Manager
(Finance &
Accounting)
Materials
Purchasing
Contract
Production
Incen-
tives
Figure 3. Organization Chart of the Enterprise

15. Market Feasibility
A number of competitive advantages like
Quality and flexibility
Ability to sale at lower prices due to enjoying facility
of opportunity of incentives from Government of
Bangladesh,

16. Financial Analysis
Item (Tk. in "000")
Land and Land development 26500
Civil & Other Works 20000
Imported Machinery 73543
Local Machinery 11557
Erection & Installation 3600
Internal Freight 200
Transport 45600
Furniture & Fixture 3000
Preliminary expenses with power deposit 6850
Contingencies 3943
Interest During Construction Period (IDCP) 7935
Total Fixed Cost 20,2729
Initial Working Capital 4,1751
Total Project Cost 24,44,79
Cost of the Project

17. Repayment Considerations
i). Rate of Interest for Term Loan 16.00%
i). Rate of Interest for and Working Capital 16.00%
iii) Rate of Interest during construction period 16.00%
iv) Construction period (Months) 6
v). Grace period including construction
period (Months)
12
vi). Repayment period of loan (Years) 5
vii) Debt-Equity Ratio for Term Loan 50:50

18. Means of Finance
Item Existing Proposed Total
L/C L/C F/C
Term Loan 0 52,411 60774 113,185
IDCP 0 9,055 0 9,055
Total Loan 0 61466 60774 122,240
Equity Capital-
Sponsor's Investment 25000 93,863 3376 122,240
Total Cost of the
project 25000 151953 67526 24,44,79

19. Earning Forecast (at 70% Capacity Utilization in the 4th
Year)
Item (Tk. in "000")
Annual Sales Revenue 908455
VAT Applicable Annual Sales revenue 0
Less: VAT Adjustment -
a) Net Sales Revenue 908455
b) Cost of goods sold 701906
c) Gross profit (a-b) 206549
d) Administrative and General Expenses 33061
e) Distribution and selling expenses 72676
f) Operating Profit {c-(d+e)} 100812
g) Financial expenses (Interest) 8,001
h) Net profit/ (loss) before tax (f-g) 92,810
i) Income tax ( tax holiday) 0
j) Net profit 9, 2810

20. Profitability RatiosProfitability Ratios
(at 70% Capacity Utilization in the 4th Year)(at 70% Capacity Utilization in the 4th Year)
Gross profit to sales (%)Gross profit to sales (%)
22.74
Operating profit to sales (%)Operating profit to sales (%)
11.10
Net profit to sales (%)Net profit to sales (%)
10.22
Return on equity (%)Return on equity (%)
82.47
Return on Total Investment (%)Return on Total Investment (%)
41.24

21. Break Even Point (BEP) Percent in Capacity
(at 60% capacity utilization in the 3rd year
Break-even Sales (Tk. in '000')
424,814
Break-even capacity (Rated)
32.66%
Break-even capacity (Proposed
Capacity Level) 54.50%
Margin of Safety
45.50%

22. Pay Back Period (Years) 3.03
Fixed Assets Coverage Ratio 1.66
Debt Service Coverage Ratio
(At 60% capacity utilization in the 3rd year)
2.31
Internal Rate of Return (IRR) 40.55%
Net Present Value of the Annuity (Tk. in "000") 30,80,18
Employment Generation (No. of Person) 114
Annual Contribution to GDP
(At 60% capacity level in the 3rd year) (Tk. in "000")
13,48,79

23. SWOT analysis
Strengths
High-quality product offerings that exceed competitor’s offerings of
price, quality, and service.
Improved product quality will be ensured with the sophisticated
machinery, skilled manpower and monitoring production and
quality control aspects
The fish commodity will be produced through contract growing
system while the quality of the produces will be ensured as well as
production cost will be reduced as a result more commission can be
provided to the retailer.
Promotional activities will be performed to a great extent
Weaknesses
Country image

24. Opportunities
Cheap and availability of raw material and labour
Due to maintenance of proper quality, the products will
gain popularity.
To sale at lower prices due to enjoying facility of
incentives from Government of Bangladesh. Government
has liberalized the industrial and investment policies in
recent years.
 Tax Exemptions : Generally 5 to 7 years.
 Duty : No import duty for export oriented industry.
The ability to develop long-term commercial contracts
which should lower costs associated with production.
Hence, retailers’ demand will be increased due to
provision of higher commission
Threats
Well established brand name of the others
Natural calamities for crops during production

25. Conclusion and RecommendationConclusion and Recommendation
From the market analysis, it was found that there is huge demand
gap in the foreign market and hence, the whole products may easily
be consumed.
A frozen fish line does not require very heavy investment. Except for
an IQF tunnel freezer, all other equipments can be made locally.
With some modification, the same production line can also be used
to make fresh-cut produce, quick frozen vegt5ables, frozen fruits,
cooked/semi cooked hamburger, patties or chicken nuggets.
Local market is developing rapidly and demand for processed food
is increasing due to growing per capita income, and increasing
number of two-income families.
The pre-feasibility study indicates that the project is technically
feasible, financially profitable, economically desirable and
rewarding from a marketing aspect.
Consequently, prospective and potential entrepreneurs may come
forward to invest in this potential industry. The project is financially
desirable, therefore may be considered suitable for bank financing