INFORMATION MEMORANDUM

TABLE OF CONTENTS

S. No. Particulars Page No.

1. Executive Summary
2. Company & Product Profile
2.1 Background
2.2 Location
2.3 Brief profile of Promoters and Directors
2.4 Product Profile
2.5 Manufacturing Process

3. Industry Analysis
4. Market & Competition
4.1 Procurement Policy
4.2 Marketing & Selling Arrangements
4.3 International Quality Standards & Certifications

5. Existing & Proposed Banking Arrangements

6. Key Financial Indicators
Assumptions and financial projections

7. SWOT Analysis
8. Annexures
1. EXECUTIVE SUMMARY

Name of Co

Date of Incorporation

PAN AAABK7665L

Location (Proposed) Dhar, (M.P.)

Office Indore - 452001

Nature of Business Fishries and prawn processing

Project Rationale

Board of Directors

Project Cost & Means COST OF THE PROJECT: COST AMOUNT BALANCE TO
of Finance RS IN SPENT TILL
LACS DT INCURR
Plant & Machineries 10.00 0.00 10.00
Margin for Working capital 100.00 0.00 100.00
T
Total 110.00 0.00 110.00

*
Loan Requirement The company requires a term loan of Rs 10.00 lacs and CC of 100
and Tenure Lacs. To be paid in 5 year in equal instalments.

Working Capital Company requires working capital limits of Rs 100.00 lacs

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Interest Rate 11.00% per annum for term loan and working capital limits
Security Primary:
Loan - Entire project assets including land and building of the project.
The present market value of the land is approx Rs lacs. Thus the
entire project assets would be approx Rs ____ lacs (hard cost) against
a loan amount of Rs. lacs.

Working capital limits - Hypothecation of Stock and Debtors

Collateral –

Personal Guarantee:

1. Mr– Networth Rs. _____ lacs (as on 31.03.16)

PAN –
DIN -
2. Mrs– Networth Rs. _____ lacs (as on 31.03.16)
PAN –
DIN -

Security coverage – _____times

DSCR Average – ______ times,

Project consultants & 

monitoring agency
Land  Area – 15000 Sq. Ft.
 Ownership – In name of company
Buildings for Total built-up area required for factory buildings will be around 3000
Production Purpose Sq. Ft. ( ______ acres)
(factory sheds)
Marketing

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Estimated Direct Employment – _____ persons
Employment Indirect Employment – _____ persons
Generated
Contractual 
Agreements

Statutory Clearances  Approval for non-agricultural use of land – In Place

 Approval of Layout and Building Plans by the District
Administration – Under Process
 Consent from State Pollution Control Board – Under Process.
 Approval for Power connection from Govt. of Madhyapradesh -
Applied for
 Air and water consent from MPCB- Not required
 NOC from Forest department- N.A.
 NOC from Gram Panchayat- Under Process

The company has already acquired land on lease required for the
project. Work related to land scaping, boundary wall, internal roads,
Implementation storm water drainage etc has started. Orders for some of the critical
Schedule machineries have been placed by paying token advance.

Operational & All the promoters are established businessman. Their net worth and
Financial Assessment investment capability is sufficient for required equity contribution.
of the Promoters
Shareholding Pattern Name of Shareholder %

%
%
%
Total 100.00
Senior Management 1. Mr– CEO
Team 2. Mr.– General Manager (Marketing & Quality Control)
3. Mr.– Head Design & Engineering
4. Mr– President Commercial (Purchase, Sales, Finance &
Marketing)
5. Mr.– Quality Assurance
6. Mr.– Qualified Engineer

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 COMPANY AND PRODUCT PROFILE

.1 Brief background of Company:

Considering the booming Global demand in fish and prawns, promoters and his
Associates has propose to set up a integrated fishing and prawn handling project under
the name of -- in the prime location . In this connection a detail financial viability has
been studied & worked out as per enclosed financial projection. However, detail
Technical Economical feasibility study is to be done in consultation with Bank.

The company proposes to cater fishing and prawns components to a niche market
segment of hotels, restaurants industries located in Domestic & Globally. Moreover,
promoters & its professional team have well-established business contacts / relationship
with leading buyers from abroad and locally. Major portion of sales comprise of fish and
prawns are heavily used by hotels, restaurants industries in abroad and locally.

The management envisages significant growth potential in Railways, Defense, Aerospace

& General Heavy Engineering industries from the Global & Domestic market and hence
has embarked upon a setting up of Greenfield project to cater to the increased demand.

.2 Brief background of Promoters:

The proposed project is promoted under leadership of well-known personality Mr. Mehul
Gandhi (%), Mrs. Sonal Gandhi (%) & Rajul Gandhi (%) .

1.

2.

3.

.3 Management Team:

Some of Key management personnel of proposed company will be as follows:

1.

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 2.

3.

4.

5.

In addition, with a view to broad base of board of directors in future, some more
professionals /Independent Director on a high scale retired employees in the field of
Engineering sector has been identified who have expressed their willingness to join the
board after commencement of commercial operation. However, present promoters are
also qualified, professional and highly experienced in their respective field along with
requisite qualities to run the unit professionally.

.4 Particulars of the Project

The proposed Farming of prawns project will be set up.

.5 Address of factory and its Locational advantages

B Factory – Forging Village: 93, Industrial Area, Betma (M.P.)

&Machining
Division
C Registered Office- 150, Jaora Compound, Indore (M.P.)

Locational Advantages:

a) Supporting infrastructure like power, water, road, telecom, railway line etc., are already
in place due to strong industrial base at Wada.

b) Manpower requirement is also available due to proximity to city as well as for historical
reasons.
c) The factory site is located close to the supplier of major raw material thereby reducing
cost of inward freight.
d) The site is reasonably close to the major Port i.e. JNPT – which is important considering
export thrust of the company.
e) Wada is well linked with Western Express Highway, which connects the other major
cities in the country through the numerous highways.
f) The selected location is in near vicinity of the existing factory and hence basic
infrastructure is all available.

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.6 Proposed production set-up of the company

The promoter of the proposed farming of prawns envisage total long term investment of
Rs.110 lakhs which will be funded by local bank as a term loan repayable in 5 years with
moratorium of 1/2 year. Moreover, working capital requirements of Rs.100 Lakhs also
envisage to run day to day operation of the company. The gestation period for the project
will be 6 months from the date of commencing the work. With commencement, the total
installed capacity would be around 10,00,000 fish seed and 1,00,00,000 prawns seed per
annum. We can farm at a 60% mortality rate.
The manufacturing set up consists of following main/production plant & machineries:
1. Boats
2. Broodstock Pond
3. Larva Rearing Tank
4. Hatchery Shed
5. Water Storage tanks
6. PVC Drainage Piping
7. Aerator setup
8. Water Pump sets
9. Generator
10. Electronic Installation
11. Borewell

.7 Purpose behind the present project

The management from their studies revealed continuous high demand in central Indian
market and export potential, the giant fresh water prawn, Macrobrachium rosenbergii ,
the scampi, enjoys immense potential for culture in India. About 4 million ha of
impounded freshwater bodies in the various states of India, offer great potential for fresh
water prawn culture. Scampi can be cultivated for export through monoculture in existing
as well as new ponds or with compatible freshwater fishes in existing ponds. It is
exported to EEC countries and USA. Since the world market for scampi is expanding
with attractive prices, there is great scope for scampi production and export.

The management also envisaged in proposed project, following facilities:

1. Suitability of the climatic conditions;
2. Suitability of the topography.3
3. Availability of adequate supplies of good quality water;
4. Availability of suitable soil for pond construction.
5. Maximum protection from agricultural and industrial pollution;
6. Availability of adequate physical access to the site for the provision of supplies
and the movement of harvested animals;
7. Availability of supplies of other necessary inputs, including postlarval and/or
juvenile prawns, equipment, aquafeeds or feed ingredients, and power supplies;
8. Availability of good skilled (managerial) and unskilled labour;

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.8 Details of Products manufactured

A. Pangasius Fish

B. Rohu Fish

C. Catla Fish

D. Indian Carp Fish

E. Silver Carp

F. Indian prawn (Fenneropenaeus indicus, formerly Penaeus indicus):

Moreover, present government has given under MAKE IN INDIA programmed big boost
to farming sector. Further with the gradual improvements in farming skills will also
commands good premium in the market due to stringent quality requirements – especially
in the abroad market. The company will planned to establish its identity & image as a
reputed supplier in this segment and would like to en-cash on the present boom in
demand in domestic / international market
.

.9 Brief details of manufacturing process

2 Setting up Fish Farming Ponds

Fish rearing in pond has some specific requirements. Before constructing a pond it is
necessary to choose the right type of site. Hence the first step in fish farming is selecting
the right type of site.

2 Site Selection

The success of a fish farm depends on the selection of the right place. The site chosen must
have a good water supply all year round and the soil must have a good water retention
capacity. Site selection factors can be divided into 3 categories as:

 Biological
 Ecological
 Social

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2 Feeding the Fish

While rearing fish in ponds, feeding is done to ensure that the fish attain maximum weight
as per market standards within the shortest possible time. However, while feeding and
rearing care must be taken to maintain the water pH between 7 and 8 for optimal growth.
The feed must provide essential nutrients for the growth, maintenance and reproduction.
The feed must contain essential nutrients like proteins, carbohydrates, vitamins and fats in
addition to other minerals in sufficient quantities. It is easier to maintain natural foods in
the fish pond like zooplankton, phytoplankton, insect larvae, etc. That way, the natural
habitat necessary for growth of the fish is maintained to some extent. The growth of
phytoplankton can be given a boost by adding various wastes from organic farming to the
pond such as poultry droppings from poultry farming, organic compost, etc. In addition,
supplementary feed is given in moist or dry form. For fish that feed from top layers,
floating pellets can be given while those feeding from the bottom are given sinking pellets.

2 Fish Farm Maintenance

The first precaution in fish farm maintenance is to maintain the water pH. The pH must be
maintained at neutral for optimal growth of the fish. In addition it must be treated with salt,
potassium permanganate, etc. to prevent growth of pathogens. Occasional water treatment
also ensure prevention of viral attacks.

2 Broodstock Management
Broodstock and berried females are essential component for continuous operation for seed
production. The gonadal maturation of the species differs greatly in nature depending on
the agro-climatic conditions. In the Ganga, the Hooghly and the Mahanadi river systems,
the maturation and breeding start from May and continue till the end of October, whereas in
the Godavari, the Krishna and the Cauvery systems it commences from April and continue
till November. Under pond conditions, sexual maturity generally occur after attaining a
maximum size of 60-70 mm. Berried females are recorded year-round in most of the ponds.
The ratio of berried females in total population is found to be higher during August-
September and during this period they carry good quantity of eggs (8000-80,000). Prawns
breed 3-4 times in a season. Successful community breeding and year-round seed
production under captive conditions is possible by employing air-lift bio-filter re-
circulatory system.

2 Spawning and Larval Rearing

Mating takes place immediately after pre-mating moult in matured female and spawning
occurs few hours after mating. Incubation period of eggs lasts between 10-15 days
depending upon the water temperature of 28-30°C. However, at lower temperature, the

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 incubation period is prolonged to more than 21 days. Hatching of fully developed 1st zoea
takes place through the body stretching of the zoea, which breaks the eggshell and comes
out from the egg and starts swimming as plankton.
Different larval rearing technologies viz., static, flow-through, clear or green water, closed
or semi-closed, with or without circulation systems of larval rearing of prawn species under
hatchery conditions have been developed with varying degrees of success. The green water
technique has been claimed to increase the post-larval production by 10-20% over other
techniques and provide a quality seed. But higher mortalities are generally encountered due
to rise in pH and uncontrolled algal bloom. Further, increase in numbers of adult Artemia,
due to abundance of feed in green water, contributes to accumulation of ammonia in the
culture medium. The production of post-larvae (PL) in large numbers is possible following
airlift bio-filter re-circulatory system. The larvae passed through 11 zoeal stages before
attaining PL within a period of 39-60 days at salinity and temperature ranging from 18-
20‰ and 28-31°C, respectively, with the production density of 10-20 PL/l.
Bio-filter equipped with air-lift re-circulation has shown promising results in maintaining
favorable water quality in different rearing media with enhanced rate of post-larval
production. The water quality parameter generally influences the growth, survival and
metamorphosis of the developing larvae and it should be maintained optimally for getting
better survival.

2 Larval Feeding
Various feed items viz., Artemia nauplii, zooplankton especially cladocerans, copepods,
rotifers, flesh of prawn and fish, molluscan meat, earthworms, tubificid worm, egg custard
and cut pieces of goat/hen viscera are used during larval rearing. Among
these Artemia nauplii have been recognized as an excellent larval food for the prawn
larvae. At the beginning, freshly hatched Artemia nauplii are provided to the 1st stage zoea
at 1 g/30,000 larvae twice daily up to 15 days or till they attain stage VI. Thereafter, the
feed is given once daily along with egg custard and mussel meat/tubificid worm four times
daily.

2 Harvesting of Post-larvae
Harvesting of post-larvae of prawn is rather difficult due to their crawling habit. Therefore,
both turn-down and drain siphoning of water are commonly used for harvesting. But due to
longer duration for attaining post-larval stage the above methods are neither useful nor safe.
Further, the presence of post-larvae in the larval tank affects the growth and survival of
advanced larvae due to competition for food and cannibalism. Hence, the need for an ideal
device for regular harvest of post-larvae from the rearing unit is very much essential. String
shell is therefore devised and is successfully used for phase wise harvest of post-larvae
during larval rearing. Post-larval survival and production rates, following air-left bio-filter
re-circulatory system, are in the range of 10-20 PL/l.

2 Post-larval Rearing

Optimum growth, production and survival of prawns can be achieved in grow-out ponds on
stocking the nursery reared juveniles rather than stocking directly with the freshly
metamorphosed post-larvae. Post-larvae slowly adopt themselves to freshwater. Optimum

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 growth and survival of healthy juveniles during post-larval rearing is achieved at salinity of
10parts per thousand.
Post-larval rearing can be done both in well-prepared earthen ponds with adequate aeration
facility and inside the hatchery following bio-filter re-circulatory system. Stocking density,
feed and water quality management play the major role in raising healthy juveniles during
rearing. Stocking density between 10-15 PL/l is ideal. Among various feed items, egg
custard along with chopped freshwater mussel meat have been established to be more
effective in maintaining good growth. Water quality parameters, viz., water temperature,
pH, dissolved oxygen and dissolved ammonia in the ranges of 27.5-30ºC, 7.8-8.3, 4.4-5.2
ppm and 0.02-0.03 ppm, respectively are considered to be favorable for better survival.

2 Grow-out Culture

Grow-out system of prawn is normally comparable to that of freshwater fish farms. As the
prawns can migrate from one pond to other due to its crawling habit, it is necessary to have
the pond embankment 0.5 m higher from the water level. Sandy-clay pond bottom is
considered to be favourable for better growth. Undrainable ponds may be treated with
conventional piscicides for eradication of predatory and weed fishes. Stocking density of
30,000 to 50,000/ha is recommended for semi-intensive monoculture farming. Ponds with
the facility of water exchange and aeration can be used for intensive farming where
stocking density could be increased to 1 lakh/ha. Temperature is the most important factor
which directly controls the growth and survival of prawns. Temperatures above 35°C or
below 14°C are generally reported to be lethal and 29-31°C is optimal.
Male prawns grow faster than females. Mixture of groundnut oil cake and fish meal in the
proportion 1:1 is used as supplementary feed. A production of 750-1200 kg/ha in six
months of rearing are achieved under monoculture with the stocking density of 30,000-
50,000. In polyculture, M. malcolmsonii at a stocking density of 10,000-20,000/ha along
with carps at density of 2,500-3,500 nos/ha, a production of 300-400 kg prawn and 2000-
3000 kg carps can also be raised.

.1 Raw Material requirements and Sources

Raw Material:

For production of 40 Lakh prawns and 4 Lakh Fish, the seeds required is around 1
crore for prawns and 10 Lakh for fish Depending on the nature of the finished
product the company requires fish net, cattle feeds. No other major material is
required. The company will source and identified its vendor for raw material either
through their direct manufacturers & sole selling agents.

The supplies of raw material are abundant and there is no scarcity of raw material.

.2 Utilities:

The necessary utilities required for the proposed project like Power & water is
available in the heavy industrial zone. Fuel in the form of cattle feeds will be

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 consumed in the plant for growing prawns and fish. Cattle feeds will be procured from
local vendors.

.3 Manpower Requirement and availability

The strength of proposed project is a motivated, dedicated and qualified

experienced team of workers, scientist and Skilled work force. The company
proposes to bring part manpower from local & partly from other nearby states. In
addition to above the company also proposes to employ workers through sub-
contractors. The company proposes to recruit the additional personnel at the
appropriate time.

.4 Quality Control and Assurance

The company proposed to make selection of equipment’s which will be suitable to

produce international grade of output. The company envisages substantial presence in
the fishing industry having production of value added diversified products. An adequate
arrangement is being made for suitable technical staff appointment for the purpose of
facilitating quality control and constant up-gradation of the product.

.5 Safety

Safety will be the main concern & utmost priority as per the law for employees, plant,
and machineries and all necessary arrangement will be made to ensure the same.

All the working people are provided with life saving jackets , helmets, safety dress,
shoes, white eye glass, hand gloves, ear plugs, mouth masks etc.

.6 Statutory Approvals
All the necessary Licenses & Permits as required for setting up of heavy industries under
the law will be obtained prior to commencement of production.

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3. INDUSTRY SCENARIO

Indian fisheries and aquaculture is an important sector of food production, providing nutritional
security to the food basket, contributing to the agricultural exports and engaging about 14 million
people in different activities. With diverse resources ranging from deep seas to lakes in the
mountains and more than 10% of the global biodiversity in terms of fish and shellfish species since
independence, the country has shown continuous and sustained increments in fish production.
Constituting about 6.3% of the global fish production, the sector contributes to 1.1% of the Gross
Domestic Product (GDP) and 5.15% of the agricultural GDP. The total fish production of
10.1 million metric tonnes presently has nearly 65% contribution from the inland sector and nearly
the same from culture fisheries. The annual carp seed production is to the tune of 25 billion and
that of shrimp about 12 billion, with increasing diversification in the recent past. Along with food
fish culture, ornamental fish culture and high value fish farming are gaining importance in the
recent past.
Export potential
Fish and fish products have presently emerged as the largest group in agricultural exports of India,
with 10.5 lakh tonnes in terms of quantity and ` 33,442 crores in value. 
This accounts for around 10% of the total exports of the country and nearly 20% of the agricultural
exports. More than 50 different types of fish and shellfish products are exported to 75 countries
around the world.
 Global position 3rd in Fisheries, 2nd in Aquaculture

 Contribution of Fisheries to GDP

1.1
(%)

 Contribution to Agricultural GDP

5.15
(%)

 Per capita fish availability (Kg) 9.0

 Annual Export earnings (Rs.

33,441.61
In Crore)

 Employment in sector (million) 14.0

Farming systems based on aquaculture

Aquaculture resources in India include 2.36 million ha of ponds and tanks, 0.798 million ha of
flood plain lakes plus in addition 195 210 km of rivers and canals, 2.907 million ha of reservoirs
and that could be utilized for aquaculture purposes. Ponds and tanks are the prime resources for
freshwater aquaculture; however, only about 40 percent of the available area is used for
aquaculture currently. Ponds in eastern India are typically homestead ponds of less than 1 ha in
size, while the watersheds in western India are larger covering expanses of between 15–25 ha each.
In northern India, open waters with in-flows are common, while southern India has watersheds,

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termed as tanks, largely used for crop irrigation. In several parts of the country ponds and tanks are
state-owned or communal and are leased out for periods of 3–5 years.

OVERVIEW

The Ministry of Agriculture of the Government of India has a Department of Animal Husbandry,
Dairying and Fisheries with a Division of Fisheries as the nodal agency. This agency is responsible
for planning, monitoring and the funding of several centrally sponsored developmental schemes
related to fisheries and aquaculture in all of the Indian States. Most of the states possess a separate
Ministry for Fisheries or else it remains within the Ministry of Animal Husbandry. All states have
well-organized fisheries departments, with fisheries executive officers at district level and fisheries
extension officers at block level, who are involved in the overall development of the sector.
However, the administrative structure at state levels varies from state to state. Centrally sponsored
schemes like the 422 FFDAs cover almost all districts in the Country and the 39 BFDAs in the
maritime districts have also contributed to aquaculture development.
The Indian Council of Agricultural Research located within the Department of Agricultural
Research and Education, which in turn is within the Indian Ministry of Agriculture, has a Division
of Fisheries, which undertakes the R&D on aquaculture and fisheries through a number of research
institutes. There are about 695 Krishi Vigyan Kendras (Farm Science Centres) in the Country,
operated through State Agricultural Universities, ICAR Research Institutes and NGOs, most of
which also undertake aquaculture development within their scope of activities.
Aquaculture over recent years has not only led to substantial socio-economic benefits such as
increased nutritional levels, income, employment and foreign exchange, but has also brought vast
un-utilized and under-utilized land and water resources under culture. With freshwater aquaculture
being compatible with other farming systems, it is largely environmentally friendly and provides
for recycling and utilization of several types of organic wastes. Over the years, however, culture
practices have undergone considerable intensification and with the possibility of obtaining high
productivity levels there has been a state of flux between the different farming practices. In the
brackish water sector there were issues of waste generation, conversion of agricultural
land, salinization, degradation of soil and the environment due to the extensive use of drugs and
chemicals, destruction of mangroves and so on. Though some of these issues posed concerns, most
however, were isolated instances with the bulk of farming conforming to eco-requirements.

MARKET PLAYERS

Avanti feeds, is the largest player in the organized segment with the market share of
around 35%. The other leading players are Apex Frozen, Waterbase, Coastal Corp, Zeal
Aqua, Shantanu Sheo.

DEMAND DRIVERS

Demand for fish and prawns originates from the various sectors like Hotels, Restaurants,
local public & Pharmaceutical companies.. With the advances in science and technology,
companies have now become competent to supply other countries. These sectors have very
large & exacting requirements.

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Recently, the industry has made exports a focus area. While a part of this effort is
necessitated by the desire to broad base markets. The dominant reason for companies
entering the export market is to utilize capacities better and thereby improve profitability.
The outsourcing concept in this industry is the latest buzzword. Nevertheless, efficient and
improving cost profile. Enhanced capacities bringing in scale benefits and superior product
development skills will keep at least the front line players at an accelerated momentum
both in terms of growth turnover and profitability

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4. SALES & MARKETING

4.1 Marketing Arrangements:

Major demand of forging will be from Hotels and Restaurants which is commanding high
demand in foreign market. However, prawns and fish falling under category of natural
reproduction have slow process due to long production cycle. However, with the help of quality
certification under process the new avenue will be been opened with new technologies. The
management has a long term business strategy to become a leading forge manufacturer
especially in Oil, Gas, Pipefitting and General engineering sector catering to Europe, North
America and gulf countries. Accordingly, thrust upon following strategy:

1. Capture the high growth opportunity in the local markets.

2. Identify new investment opportunities

3. Build upon existing relationship

4. Continue to enhance Training and Development

The company has developed designing, technical and scientific skill over a period of time for
enhances its customer base. The management has decided its prime mission that being Global is
not just only export but is also requires having expertise to be carried out in different key
products so that company can be in close proximity to its customers.

The company is focusing in targeting customers primarily hotels and restaurants who can
contract their sales on direct sales basis.

4.2 Selling Arrangements:

1) The major advantage the company will have is larger installed capacity of 1 crore
prawns and 10 lakh fish , the biggest in the surrounding area till MP. As a result
we can cater from various requirements to our customers. Moreover, the
Management & key management executives are commanding good reputation and
goodwill in domestic & international market.

2) Since the products of the company are scientific in nature and require strict QC
compliance – the best way to market the products is to meet the stringent QC
requirements and manufacture the products at reasonable cost – using latest
equipment’s which we are installing.

3) The company will be the first in surrounding area till MP having installed capacity
of 1 crore prawns and 10 lakh fish. The promoters are in touch with its prospective
customers and they have assured us to place larger volume with the company once
the plant commences its commercial operation.

4) There is a tremendous booming export market of fish and prawns due to closure of fish
16
 plants in surrounding States on environment/nose pollution ground. Since the
company proposes to develop its own quality set up that will help to expand the
level of customer’s confidence.

5) The company also plans to supply its products to more than one type of industry:
so that it need not become dependent on a single customer and its business risk are
well spread out.

The company do not foresee any major problem in marketing as has a dynamic team of
professionals who cater to the demands and requirements of the Domestic & international
business.

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5. SWOT ANALYSIS

Strengths:
a) The company is installing state-of-the-art equipment’s to manufacture the products with
bigger installed capacity.

b) The Management & its Key executives are enjoying good Name & reputation in the
Domestic & international market because of their past experience & see no major
problem to sell the products to the end users.

c) Close proximity to Raw Material sources.

d) Being located in a developed Industrial area at Dhar, MP all the infrastructure required
running, the company is readily available.

Weaknesses:
a) The industry is vulnerable to volatility in the domestic as well as export market
b) Major part of the production is exported and hence will be exposed to risks of rupee
appreciation.

Opportunities:
a) Opportunities of outsourcing in domestic markets
b) Opportunities offered due to closure of captive fish plants in other states due to stringent
environmental factors

Threats:
a) Strong competition from competitors.
b) Adverse Change in government policies may have an impact on the company’s financial

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6. CONCLUSION

The Firm is incorporated as a Private Limited Company on _____,. Looking at the

demand sentiment in the industry proposed to set up a large scale fishing plant at
___________ _______ in Madhya Pradesh.

The firm has already acquired the land on lease for the proposed project and has
also tied up with various consultants for the successful execution of the project.
Apart from this it has also taken the sanction from the _______________ Gram
Panchayat.

The Plant has various locational advantages such as

 Dhar is well linked with Express Highway, which connects the other major cities
in the country through the numerous highways.
 Supporting infrastructure like power, water, road, telecom, railway line etc., are
already in place due to strong industrial base at Wada.
 Manpower requirement is also available due to proximity to city as well as for
historical reasons.
 The plant site is located close to the supplier of major raw material thereby
reducing cost of inward freight.
 The selected location is in near vicinity of the existing factory and hence basic
infrastructure is all available.
 The site is well connected with Road and is just -- Km away from the Rail
facilities .
 Labour is available in plenty from the nearest surrounding villages.
 The site being centrally located raw material resources are available from the
nearby area.

The estimated cost of the proposed project is Rs ________ lacs. This cost is proposed to be
met by way of Promoters’ contribution to the tune of Rs_______ lacs in the form of Equity
Share Capital, lacs and term loan from banks to the tune of Rs 10 Lakhs and CC limit of
100 Lacs. The Debt equity ratio for the project considering interest free unsecured loans as
quasi equity, works out to around ______. The proposed project is expected to be
commissioned within a period of 10 days from the zero date. as the firm has already
acquired land, plant layout has been finalised and enquiries for the major plant &
machinery has been floated and advance for some of the critical equipments has been
given.

Looking at the financial projections of the company, considering the upward trend in the
fishing and prawn industry, technical expertise of the senior management team of the
company, locational advantage of the project site, DSCR of _______ times and subject to
observations made in the SWOT Analysis the proposed project for setting up a large scale
forging plant seems to be financially viable.