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:

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

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 Chittagongbased 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 proposal are 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.

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 of the 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

 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

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 operations 2. Capital expense and operating expense including capital to purchase equipments associated with the Companys operations 3. 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.

Sales Forecast

Marketing Plan & Objective The Founder expects that the business will aggressively expand during the first three years of operation. He intends to implement marketing campaigns that will effectively target seafood buyers within the target market and to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. The objective is to develop relationships with major groceries and fish/seafood wholesalers that will acquire bulk inventories from the company and to develop ongoing purchase order relationships with coops throughout the target market.

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

Investor Equity: Currently the company is not seeking an investment from a third 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 a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of OFPL. Based on historical 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 and distribute its products to seafood wholesalers throughout the target market. Mr.

Sarker has already sourced the equipment and vehicle that will be used for the Fisherys operations. Additionally, it should be noted that Mr. Sarker may join a fishery coop that will assist with the distribution and sale of the Fisherys seafood and 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 it progresses through its business operations. Currently, the economic market condition 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 point the economy will begin to recover. However, this should have a minimal impact on the Fishery industry to generate revenues as its fishes are well popular that are constantly in demand regardless of 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 Companys inventories 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 by providing customers with service/products that are of better quality or less expensive than competition.

Marketing strategies

OFPL marketing operations will be minimal till the Company solidifies ongoing relationships with fishery coops and wholesalers; very little marketing will be required 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 OFPL in maintaining stringent pricing (through forward and futures contracts) so that OFPL always has a predictable stream of income. In this instance, the Company will hire a marketing/advertising firm to properly position the Companys image and brand so that it can directly sell packaged fish to 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

Sensitivity Analysis In the event of an economic downturn, the business should not have a major decline in its revenues. OFPL intends to trade demand based fish that will be readily purchased by wholesalers, grocers, coops, and other organizations that deal in fish and seafood. Thus the Company will be able to remain profitable and cash flow will be positive in any economic climate.

Source of funds Financing Equity Contributions Management Investment Total Equity Financing Banks and Lenders Banks and Lenders Total Debt Financing Total Financing $100,000.00 $100,000.00 $125,000.00 $25,000.00 $25,000.00

Cash Flow Analysis

Balance Sheet

Break-even Analysis

Expanded Profit and Loss Statement

Expanded Cash Flow Analysis

Expanded Cash Flow Analysis (contd.)

Expanded Cash Flow Analysis (2nd Year)

Expanded Cash Flow Analysis (3rd year)

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

APPENDIX