1. 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: NameIDRaihan Hossain2009110000036Md Fayshal Hossan Miazy2009110000038BBA.22nd Batch. Section-BDate of Submission: 10 May, 2012

2. DedicationDedicate to our respected parents & Our honorable course teacher Md. Mahfujur Rahman . 3. 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. 4. Yours Sincerely-----------------------------Md Fayshal Hossan Miazy (On behalf of the group member)AcknowledgementAt 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. 5. 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 life3.:The project is located at Comilla, BaruraLocation of the projectInfrastructures facilities such as electricity, skilled Labor etc.4. Mailing address of the project : Paiyapara.Barura.Comilla-3500E-mail: info@frbrothers.comWebsite: www.frbrothers .comPhone: Cell: +8801671130117, +88016728730715. Registered Office:-do- 6. Management AnalysisCorporate 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 ShareStatusDilara Miazy30%ChairmanRaihan Hossain Miazy35%Vice-ChairmanMd Fayshal Hossan Miazy35%Managing DirectorIt is expected that we will be able to run the project most efficiently and successfully. 7. 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.ChairmanVice-ChairmanManaging DirectorDirector (Admin.)Finance DirectorOperation Director 8. 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. 9. 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.100000Office 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. 10. Marketing AnalysisJustification 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: 11. YearDemandSupplySupply Gap (D-S)20092010201120122013201435005100744610871158712317225003000450060008000100001000200029464871782913172Growth 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: Year200920102011201220132014 12. Supply Gap1000200029464871782913172In 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. Its 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 13. 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-CustomerList of Competitors: 1. TitlePhenix Poultry Ltd.AddressNoorjhan Sharif Plaza (3rd floor), 34 Purana PaltanCityDhaka - 1000CountryBangladeshTelephone+880-2-9554768, 9554638, 9553265, 01711-626226Fax+880-2-95625012.TitleS.A. Rahman Poultry & Dairy Farm LtdAddressAsif Mansion (6th Floor), 77/1 KakrailCityDhaka - 1000CountryBangladeshTelephone+880-2-8311016Fax+880-2-9347193TitleSalbon Poultry & Fisheries3. 14. AddressSonartori Tower (13th level), 12 Sonartory RoadCityDhaka - 1000CountryBangladeshTelephone+880-2-8622996, 86246274. TitleKazi Firms Ltd.AddressHouse # 84 (4th floor), Satmosjit Road, Dhanmondi R/ACityDhaka - 1209CountryBangladeshTelephone+880-2-9123432, 8127033, 9128062Fax+880-2-91228425. TitleBrothers Poultry FirmAddress580, Kajipara Rokaya Saroni MipurCityDhaka - 1216CountryBangladeshTelephone+880-2-8012857, 01711-528945 15. Fr Brothers Poultry & Fisheries Ltd Fixed cost of the BusinessTk. ItemsLocal CostForeign CostTotal45000004500000Lease Land (2 bigha)100000100000Building700000700000Land (3 bigha @ tk.15 lac/bigha )Imported Machinery (2 incubator @ $ 9000 1$=85) Import Duty (10%)1530000---1530001530000 15300050005000548605486010000050000024000002400000Furniture100000100000Office Equipment & Decoration100000100000Utility Connection Cost5000050000Fire Fighting & Safety Instruments1000010000Pre-operating Expenses2500025000Consultancy Fees (.50%)5113951139Installation IDCP (interest during construction period) (13%) Local Machinery Vehicle (3 pickup @ 8 lac/pickup)Total10278999 16. Fr Brothers Poultry & Fisheries Ltd Financing PlanItemsBank InstallmentClients EquityTotalAmount%Amount%Amount%Land225000050%225000050%4500000100%Building49000070%21000030%700000100%Imported Machinery130714575%43571525%1742860100%Local Machinery500000100%500000100%Vehicle2400000100%2400000100%Others43639100%429045100%Total Tk.4047145623185410278999 17. Fr Brothers Poultry & Fisheries Ltd Means of Finance Tk.%Bank Installment404714539.37Clients Equity623185460.63Total10278999100Fr Brothers Poultry & Fisheries Ltd Debt-Equity RatioDebt-Equity Ratio 39.37: 60.63 18. Fr Brothers Poultry & Fisheries Ltd Syndicate FinanceTotal Bank Installment Tk. 4047145Amount (Tk.)%Bank Standard Chartered Bank (LA)222593060707155%15%Brac Bank (CA) 60707215%Dutch-Bangla Bank Limited (CA)607071215%4047145100%The City BankTotal 19. Fr Brothers Poultry & Fisheries Ltd Sales Estimate /RevenueItemsQuantityUnit PricePoultry50000 psTk.1206000000Egg240000 psTk. 61440000Fish8 Metric TonsTk. 70000TotalAmount (Tk.)5600008000000 20. Fr Brothers Poultry & Fisheries Ltd Cost of Raw MaterialsItemsQuantityUnit PriceTotalBroiler & layer chicksFish FeedTk. 340001700000Tk. 1035000020000 psTk. 408000008 Metric TonsEgg50 Metric Tons35000 psPoultry & layer FeedTk.36000288000200000MedicineTotal3338000 21. Fr Brothers Poultry & Fisheries Ltd Wages & SalariesParticularsQuantitySalary/Month-Salary/Year-Firm Manager-Supervisor1Quality Controller--Skilled Labor5Tk. 5000300000Helper1Tk.350042000Peon-Total72000Tk.6000---414000 22. Fr Brothers Poultry & Fisheries Ltd Administrative ExpenseParticularsQuantitySalary/MonthSalary/YearGeneral Manager---Accountant1Tk.10000120000Marketing Executive1Tk. 800096000Computer operator---Peon---Total216000 23. Fr Brothers Poultry & Fisheries Ltd Depreciation ScheduleItemsValue of Assets%Amount (Tk.)045000000%7000005%35000153000010%153000Local Machinery50000010%50000Furniture10000020%10000240000020%480000Land Building Imported MachineryVehicleTotal728000 24. Fr Brothers Poultry & Fisheries LtdUtility CostItemsMonthly CostYearly CostElectricity BillTk.500060000Gas BillTk.300036000Water BillTk. 5006000Telephone BillTk. 100012000Internet BillTk. 5006000Fuel CostTk.100012000Total132000 25. Fr Brothers Poultry & Fisheries LtdCosts of Goods SoldItemsAmount (Tk.)3338000Raw MaterialsWages & Salaries414000Administrative Cost216000Depreciation728000Utility Cost13200060000Maintenance CostTotal4888000 26. Fr Brothers Poultry & Fisheries LtdWorking Capital EstimateItemsDaysAmount (Tk.)60667600Work in process334380Finished goods15171900Receivable7.585950Raw MaterialsTotal960830 27. Fr Brothers Poultry & Fisheries LtdFinancial Expenses & InstallmentItemsBank loan amountInterest rate/yearTotalInstallment404714510 years404714Term loan interest404714515%60707196083015%144125Working capital interest1155910 Total financial expenses & installment 28. Fr Brothers Poultry & Fisheries LtdEarning ForecastItemsTotalSales Revenue8000000Less. Cost of goods sold4824000Gross Profit3176000Less. Administrative Expenses210000Operating profit-2966000Less. Financial Expenses & Installation-1155910Net Profit before tax1810090Less. Income TaxNet Profit after Tax(Tax Holyday) -0001810090 29. Network TechniqueTaskPredecessorTimeLand--- (A) ---------------------------------------------------------------------------30Lease Land--- (B) -------------------------------------------------------------------20Building---(C) ---------------------------------------------------------------A, B90Imported Machinery--- (D) ----------------------------------------------A60Import Duty---- (E) --------------------------------------------------------D10Installation--- (F) ---------------------------------------------------------D, E5IDCP---- (G) -----------------------------------------------------------------D, E, F10Local Machinery--- (H) ---------------------------------------------------C10Vehicle--- (I) ----------------------------------------------------------------C, D10Furniture--- (J) -------------------------------------------------------------C, H30Office Equipment & Decoration--- (K) -------------------------------F, H15Utility Connection Cost--- (L) ------------------------------------------C30Fire Fighting & Safety Instruments--- (M) ---------------------------C, L10Pre-operating Expenses--- (N) -------------------------------------------M10Consultancy Fees--- (O) --------------------------------------------------N10 30. Fr Brothers Poultry & Fisheries Ltd Network TechniqueCritical Path: A+C+K+M+N+O=30+90+30+10+10+10=180 Days 31. Fr Brothers Poultry & Fisheries Ltd Gantt chartTask0-3030-6060-9090-120120-150150-180A B20C D E F G H100 100 105 105 115 130I130J130K130160145L M160 32. 160N170 180OSocial Cost Benefit Analysis Fr Brothers Poultry & Fisheries LtdSocial Cost Benefit AnalysisThe proposed poultry and fisheries project is expected to have certain social cost benefit criterias. 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