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

2. 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

3. Dedication
Dedicate to our respected parents
&
Our honorable course teacher Md. Mahfujur Rahman
.

4. 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.

5. 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.

6. 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-

7. 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.

8. 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

9. 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.

10. 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.

11. 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:

12. 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

13. 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

14. 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.

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. Fr Brothers Poultry & Fisheries Ltd
Network Technique
Critical Path: A+C+K+M+N+O=30+90+30+10+10+10=180 Days

32. 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

33. 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