the pakistani fishery industry (a study by smeda)

Pre-Feasibility Study
SSeeaa FFoooodd PPrroocceessssiinngg PPllaanntt
Small and Medium Enterprise Development Authority
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
Waheed Trade Complex, 1st
Floor , 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore
Tel: (042) 111-111-456, Fax: (042) 5896619, 5899756
Helpdesk@smeda.org.pk
REGIONAL OFFICE
PUNJAB
REGIONAL OFFICE
SINDH
REGIONAL OFFICE
NWFP
REGIONAL OFFICE
BALOCHISTAN
Waheed Trade Complex,
1st
Floor, 36-Commercial Zone,
Phase III, Sector XX,
Khayaban-e-Iqbal, DHA Lahore.
Tel: (042) 111-111-456
Fax: (042) 5896619, 5899756
helpdesk@smeda.org.pk
5TH
Floor, Bahria
Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 5610572
Helpdesk-khi@smeda.org.pk
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 9213046-47
Fax: (091) 286908
helpdesk-pew@smeda.org.pk
Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623,
2831702
Fax: (081) 2831922
helpdesk-qta@smeda.org.pk
September, 2008

DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject
matter and provide a general idea and information on the said area. All the material
included in this document is based on data/information gathered from various sources and
is based on certain assumptions. Although, due care and diligence has been taken to
compile this document, the contained information may vary due to any change in any of
the concerned factors, and the actual results may differ substantially from the presented
information. SMEDA does not assume any liability for any financial or other loss
resulting from this memorandum in consequence of undertaking this activity. Therefore,
the content of this memorandum should not be relied upon for making any decision,
investment or otherwise. The prospective user of this memorandum is encouraged to
carry out his/her own due diligence and gather any information he/she considers
necessary for making an informed decision. The content of the information memorandum
does not bind SMEDA in any legal or other form.
DOCUMENT CONTROL
Document No. PREF-12
Prepared by SMEDA-Balochistan
Approved by Head of Department
Issue Date September, 2008
Issued by Library Officer

Pre-feasibility Study
BAL-PREF-11/ September, 2008
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11 IINNTTRROODDUUCCTTIIOONN TTOO SSMMEEDDAA
The Small and Medium Enterprise Development Authority (SMEDA) was established
with the objective to provide fresh impetus to the economy through the launch of an
aggressive SME support program.1i
Since its inception in October 1998, SMEDA had adopted a sectoral SME development
approach. A few priority sectors were selected on the criterion of SME presence. In depth
research was conducted and comprehensive development plans were formulated after
identification of impediments and retardants. The all-encompassing sectoral development
strategy involved recommending changes in the regulatory environment by taking into
consideration other important aspects including financial aspects, niche marketing,
technology upgradation and human resource development.
SMEDA has so far successfully formulated strategies for sectors including, fruits and
vegetables, Marble and Granite, gems and jewelry, marine fisheries, leather and footwear,
textiles, surgical instruments, urban transport and dairy. Whereas the task of SME
development at a broader scale still requires more coverage and enhanced reach in terms
of SMEDA’s areas of operation.
Along with the sectoral focus a broad spectrum of business development services is also
offered to the SMEs by SMEDA. These services include identification of viable business
opportunities for potential SME investors. In order to facilitate these investors, SMEDA
provides business guidance through its help desk services as well as development of
project specific documents. These documents consist of information required to make
well-researched investment decisions. Pre-feasibility studies and business plan
development are some of the services provided to enhance the capacity of individual
SMEs to exploit viable business opportunities in a better way. This document is in the
continuation of this effort to enable potential investors to make well-informed investment
decisions.
1
For more information on services offered by SMEDA, please visit our website: www.smeda.org.pk

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22 PPUURRPPOOSSEE OOFF TTHHEE DDOOCCUUMMEENNTT
The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs
in project identification for investment. The project pre-feasibility may form the basis of
an important investment decision and in order to serve this objective, the document/study
covers various aspects of project concept development, start-up, and production, finance
and business management.
33 PPRROOJJEECCTT PPRROOFFIILLEE
The project involves processing of Seafood, including fish, shrimps, lobsters etc. for
domestic and international markets. Processing of fish involves primarily the application
of preservation techniques in order to retain quality and increase shelf life of the product.
It may also deal with value-adding to produce a variety of products. The quality
production will ultimately increase the product demand of sea food in Pakistan as well as
in international markets.
The major scope of processing activities will include post fish catch activities i-e pre-
cooling/icing, grading, cutting and cleaning, packing, and freezing. Sea food processing
unit can also provide processing services on rental basis to other exporters of sea food in
terms of provision of processing facility, provision of cold storages and transportation
service up to the port of exit. Beside this, local fish suppliers, dealers, contractors and
boat owners will also be the potential rental costumers of the plant, where they can get
processing services for their catch through paying a service charge as a rent..
33..11 PPrroojjeecctt BBrriieeff
The project is about a Processing Plant which will process / freeze sea food (Fish and
shrimps etc.) The final product will be supplied to the food markets of major cities of
Pakistan that include Lahore, Sialkot, Islamabad, Karachi, Peshawar and Quetta. Export
quality products will be shipped to the international sea food markets of European Union,
Japan, USA, and Russia. Beside this, restaurant chains and 5 star hotels across the
country are also one of main consumers of the sea food. The processing plant would be
used to process the sea food catch mainly coming from the Arabian Sea through fishing
boats, launches and international fishing trawlers.
As a source of white meat, consumption trend and level of fish is very low as compared
with chicken. The prime reason for this low consumption is the scarce supply, low quality
and less availability of fish in the meat markets of major cities in Pakistan. Effective
supply chain of fishery products in domestic markets can increase the demand of fish in
local markets.
The process would include undertaking value-added activities, which will increase the
quality and shelf-life of sea food for the national and international market. The plant
should be located at the coastal area of Pakistan ideally near a fish harbor. Pakistani sea
food products have significant demand in the international market, however, the export of
sea food products is far less as compare to the available potential. It has been observed

5
that in order to increase the international export markets size, good quality sea food
production will require adequate physical infrastructure facilities like modern processing
units, cool chain, and other supply related logistics. Attaining international quality
standards and getting quality certificates is a mandatory requirement in Sea food
processing industry
33..22 SSeeaa ffoooodd–– AA ddeeffiinniittiioonn
Fish represents a valuable source of proteins and has a significant nutrient value in the
daily diet. Fish is an important part of the daily food intake of most of the countries in the
world and its importance in contributing to food security is rising significantly.
The total food supply available from fisheries in live weight terms is estimated to be
slightly higher than 16 kilos per year for each of the world's inhabitants. Fisheries and
aquaculture make an important contribution to the animal protein supplies of many
communities in both the industrialized and developing worlds.
Significant supply of fish exists along the Balochistan and Sindh coast. Some of the
species with major production along Pakistan coast are as follows,
Table No. 3.2.1
S. No. Name S. No. Name
1 Ribbon Fish 12 Conger Eel
2 Silver Pomfret 13 Chinese Pomfret
3 Black Pomfret 14 Indian Mackerel
4 Lady Fish 15 Shells
5 Red Snapper 16 Yellow Croaker
6 Silver Croaker 17 Ark Shell
7 Tiger Tooth Croaker 18 Green Mussels
8 Razor Shell 19 Fan Shell
9 Baigai 20 Baby Clam
10 Crabs 21 Salted jelly Fish.
11 Grouper 22 Tuna Fish
Fish is a major component of the sea food that provides a source of vitamin-rich diet.
Fish is very perishable food commodity that requires proper handling and preservation to
increase its shelf life and retain its quality and nutritional attributes.
The principal components of the fish muscle - water, fat and protein - must be preserved
with little or no changes. The protein content is usually in the region of 15-20 percent,
whereas the fat content varies widely from species to species and from season to season.
It can be as low at 0.5 percent in lean starved fatty fish and can reach over 20 percent in
some species. In lean fish the bulk of the fat is stored in the liver and not in the muscle.
Water is the main constituent, with considerable variations, typically 80 percent in lean
fish and 70 percent in fatty fish. Carbohydrates, minerals, vitamins and some water
extractable components are examples of other minor substances present.

6
33..33 OOppppoorrttuunniittyy RRaattiioonnaallee
After minerals and agriculture, fishery is the third largest sector in playing a vital role in
the economy of Balochistan. Coastal belt of Balochistan provide a significant supply of
the sea food to Pakistan and also have the potential to play an important role in
international sea food market. Balochistan and Sindh coastal areas happened to be on the
migration routes of the various varieties of marine species which have a considerable
demand in local as well as international marine food markets. There exist more than 30
species of shrimps, 10 species of crabs, 5 species of lobster and about 70 commercial
species of fish including sardine, Hilsa, shark, Mackerel, Butterfish, Pomfret, Sole, Tuna,
sea bream, Jew fish and Cat Fish, Shark, and Eel.
Pakistan’s exports of fishery products stand at about 0.25% of world exports. According
to estimates, Pakistan total export potential from this sector is near US$ 1.0 billion from
existing natural resources. Pakistan share signifies that a wide growth opportunity exist in
export markets. Pakistan’s domestic consumption is termed as one of the lowest in the
world, at 1.6 kg per person per year (compared to world average of 16.2 kg per person
per year), this figure also portrays tremendous growth opportunity for the local
consumption of sea food.
Hence, most of the fish catch goes to fish meal that is treated as wastage to the product.
Prime reason for the low national sea food consumption and low export share in sea food
export market is attributed to the absence of proper processing, storage and transportation
facility in the coastal belt.
Properly developed cool chain and fish processing plants will help to significantly
decrease spoilage and ultimately increase the supply of quality fish to local and
international markets. Development of fishery can also play an important role in
provision of employment and growth opportunities to many small and middle size
communities along the coastlines.
33..44 MMaarrkkeett EEnnttrryy TTiimmiinngg
Fish processing operations continues through out the year however it is recommended
that plant should be ready for operation during the months of July to March so that it can
avail full fish catch of the sea. As the peak fishing season starts from the months of
September
33..55 PPrrooppoosseedd BBuussiinneessss LLeeggaall SSttaattuuss
The business can be started as sole proprietorship or partnership. Comparatively fewer
complications are involved in forming, administering and running the sole proprietorship
or partnership businesses.

7
33..66 PPrrooppoosseedd PPrroodduucctt MMiixx
The sea food processing plant is designed to house and process the fish catch for export
market. In order to facilitate the fish suppliers on regional and national level, the plant
also has the capacity to provide processing facility on rental basis.
Major operations of this processing plant will be grading, washing, cutting, blast freezing
and packaging of fish catch from Balochistan and Sindh coastal areas. The final product
will be supplied through a cool chain to national and international markets.
Rental value of the plant is one of the main contributing factors to the revenue. The plant
can offer its production and processing services to the local fishermen and investors on
rental basis. The plant can charge production charges on per kilogram of the final
product.
Project will also be facilitated through an internet website. The website of the company
will facilitate the national and international buyers in selecting the fisheries product of
their choice and will enable them to streamline the supply of consistent product to the end
users/exporters in a given time frame.
33..77 PPrroojjeecctt CCaappaacciittyy
The plant will store the fish catch and process the same in the same cycle. The plant will
be able to handle approximately 60 tones of fish catch of varying varieties in 24 hours.
It will have a wider cold storage facility. Cold store of the project will be 10 times the
size of the processing plant i-e it should have the capacity to store the product order of 10
days as such the cold storage of the plant will be of 600 tons capacity.
33..88 PPrroojjeecctt IInnvveessttmmeenntt
The total project investment is Rs. 120,521,267 which includes capital cost of Rs.
91,416,722 and working capital of Rs. 29,104,545. It is assumed that the project would be
partially equity financed (50%) and partially debt financed (50%).
33..99 RReeccoommmmeennddeedd PPrroojjeecctt PPaarraammeetteerrss
Table 3.9.1
Capacity
Human
Resource Technology/Machinery Locations
60,000 tons/year 15 Imported / Local Made
Gwadar, Pasni , Ormara, Jiwani,
Damb, Karachi, Korangi,Gharo.
Financial Summary
Project Cost IRR Pay Back Period NPV
Rs. 88 m 41% 4.1 Years Rs 100 m

8
33..1100 RReeccoommmmeennddeedd LLooccaattiioonnss
The proposed location for the establishment of such a facility could be the areas with in
the proximity of Balochistan and Sindh coastal belt. If the project is closer to a fish
harbor it will have an added advantage of being nearer to the raw material supply.
The harbors and main landing points with their provincial location and relative
importance are as follows,
NAME PROVINCE Relative Importance
Karachi Sindh **** H
2 Korangi Sindh **
3 Ibrahim Haidery Sindh *
4 Shams peer Sindh *
5 Hawks Bay Coast Sindh *
6 Lath Basti Sindh *
7 Manjhar Sindh *
8 Sonari Sindh *
9 Mubarrak Village Sindh *
10 Kaitee Bandar Sindh **
11 Shah Bandar Sindh **
12 Kharo Chaan Sindh **
13 Jatthi Sindh **
14 Jhungi Sur Sindh **
15 Badeen Sindh **
16 Gwadar Balochistan *** H
17 Pasni Balochistan *** H
18 Ormara Balochistan ***
19 Gaddani Balochistan **
20 Bunda Wari Balochistan *
21 Beroo Balochistan *
22 Sonmiani Daam Balochistan **
Legends: * meets local users requirements
** Important
*** Very important
**** Most important
H = Fishing Harbor
There are four fish harbors which are under different administrative control. However,
recommendation can also be made on the basis of availability of the nearest sea port.

9
Gwadar Port:
 With the operation of Gwadar port. The locations associated with Gwadar port are
recommended for establishing sea food processing plant. These areas are Pasni ,
Ormara and Surbendar.
Karachi Port and Port Qasim:
 The locations associated with Port Qasim and Karachi Port is recommended for
establishing sea food processing plant in Sindh. The areas are Korangi Fish
Harbour ( Ibrahim Haydery) and Gaddani.
33..1111 KKeeyy SSuucccceessss FFaaccttoorrss
 Availability of vast range and variety of fish and marine food in Arabian Sea waters
along the Pakistan coast.
 Proposed areas for the processing plant have quite considerable number of skilled
fishermen and boat owners.
 Significant number of suppliers exists for the production.
 Large and established world markets
 Growing trend in sea food consumption nationally and internationally.
 Rehabilitation in Afghanistan.
 5-Stars hotels and restaurant chains are in continuous need of quality sea food supply.
 Improved technological changes available.
 Ample opportunity for exports.
 International recognition of the plant will boost the export orders.
33..1122 SSttrraatteeggiicc RReeccoommmmeennddaattiioonnss
 The location plays an important role, as the facility should easily be accessible to the
nearest port and towns.
 Effective supply and cool chain will increase the market accessibility.
 International quality certifications i-e HACCP, ISO can increase the product
credibility internationally.
 Emphasizing on excellent quality standards and producing quality assured products
and timely order fulfillment.
 New machinery should be purchased in order to increase the efficiency and lower the
maintenance cost.
 Adapt to the rapid, social, economic and technological changes.
 Well-trained/experienced staff adding in the efficiency of the facility.

10
44 CCUURRRREENNTT IINNDDUUSSTTRRYY SSTTRRUUCCTTUURREE
44..11 WWoorrlldd FFiisshheerriieess TTrraaddee aanndd PPrroodduuccttiioonn::
About 38% of world fish production is traded internationally. In 2001, total exports of
fish and fishery products were US$ 55.9 billions in value terms. About 74 percent of
world fish production is used for direct human consumption, whereas the remainder
(about 26 percent) is utilized for various non-food products, mostly for conversion to
fishmeal and oil.
In 2004, the per capita food fish supply was estimated at 13.5 kg, excluding China.
Overall, fish provided more than 2.6 billion people with at least 20 percent of their
average per capita animal protein intake. The share of fish proteins in the total world
animal protein supplies grew from 14.9 percent in 1992 to 16.0 percent in 1996. In 2003
the percentage was 15%.
The estimates for 2005 indicate that the total world fishery production was 142 million
tones, an increase of one million tones over 2004, and a record production. The total
amount of fish available for human consumption has increased to 107 million tones.
China is the largest producer, with fisheries production of 47.5 million tones in 2004,
16.9 million tones capture and 30.6 million tones aquaculture.
Developing countries, supplied more than 50% of the world fisheries production. Shrimp
is the main fish commodity traded in value terms, accounting for about 19% of the total
value of internationally traded fishery products. In 2001, more than 80% of the total
world import value was concentrated in developed countries, in particular in Japan, the
USA and in several EU countries.
Japan was the major importer accounting for about 23% of total import value. USA was
the second main importer with a share of 17%, followed by Spain, France, Italy,
Germany and the UK. (Source: FAO)

11
Table No: 4.1.1
World fisheries and aquaculture production and utilization
2000 2001 2002 2003 2004 20051
(Million tonnes)
PRODUCTION
INLAND
Capture 8.8 8.9 8.8 9.0 9.2 9.6
Aquaculture 21.2 22.5 23.9 25.4 27.2 28.9
Total inland 30.0 31.4 32.7 34.4 36.4 38.5
MARINE
Capture 86.8 84.2 84.5 81.5 85.8 84.2
Aquaculture 14.3 15.4 16.5 17.3 18.3 18.9
Total marine 101.1 99.6 101.0 98.8 104.1 103.1
TOTAL CAPTURE 95.6 93.1 93.3 90.5 95.0 93.8
TOTAL AQUACULTURE 35.5 37.9 40.4 42.7 45.5 47.8
TOTAL WORLD
Production
131.1 131.0 133.7 133.2 140.5 141.6
UTILIZATION
Human consumption 96.9 99.7 100.2 102.7 105.6 107.2
Non-food uses 34.2 31.3 33.5 30.5 34.8 34.4
Population (billions) 6.1 6.1 6.2 6.3 6.4 6.5
Per capita food fish supply
(kg)
16.0 16.2 16.1 16.3 16.6 16.6
44..22 PPaakkiissttaann FFiisshheerriieess TTrraaddee aanndd PPrroodduuccttiioonn
As a highly perishable commodity, fish has a significant requirement for processing.
More than 60 percent of total world fisheries production underwent some form of
processing. The most important of the fish products destined for direct human

12
consumption was fresh fish (a share of 53.7 percent), followed by frozen fish (25.7
percent), canned fish (11.0 percent) and cured fish (9.6 percent).
Pakistan has a total coastline of 1,090 km and a total fishing area of approximately
300,000 sq. kms. Pakistan’s fishing waters are termed as highly rich in marine life with a
vast variety of species having commercial value. However, this potential is not reflected
in the export earning from fisheries sector. The exports of “Fish and Fish Preparation”
were at $134.5 million (with a volume of 93,214 tons) in 2002-03.
European Union countries, Japan and U.S.A are some of the big export market for sea
food. Pakistan fisheries export’s ultimate aim will be to capture a bigger percentage in
EU and US markets. However, the quality standard and restrictions for these markets are
very stiff. In order to meet EU and US quality standards, processing plants and supply
chain management of Pakistan sea food products should be up to the these standards.
Pakistan’s exports of fishery products stand at about 0.25% of world exports. In 2006
Pakistan’s seafood exports registered more than 40 percent growth last year, reached $
196.15 million up from $ 138.94 million exported during 2004-05. Pakistan exported
seafood worth $ 188 million during the financial year 2006-07, which was almost four
percent less against $ 196 million of 2005-06. August-September is the peak period of the
season and before the ban Pakistan used to export over 90 percent seafood products to the
EU in these months. Due to the EU ban, the shrimp exporters had explored some markets
in the Middle East, China and Korea
44..33 TTaarrggeett MMaarrkkeettss ooff PPaakkiissttaann FFiisshheerriieess::
European Union countries, Japan and U.S.A are some of the big export market for sea
food. Pakistan fisheries export’s ultimate aim will be to capture a bigger percentage in
EU and US markets. However, the quality standard and restrictions for these markets are
very stiff. In order to meet EU and US quality standards, processing plants and supply
chain management of Pakistan sea food products should be up to these standards.
The EU is a big market for Pakistani seafood and Pakistan is not getting a foreign
exchange of $ 47 to $ 50 million since 2005-06. There are also some US restrictions on
seafood exports, which needed to be lifted. The EU has banned seafood exports from
Pakistan since April 2007. The action was taken after its inspectors’ visit to Pakistan.
They found the industry’s food processing below their standards. The EU had also raised
complaints against fishing vessels, auction halls and processing units, which have still not
been addressed by the fishermen community.
The European countries are the largest buyers of Pakistani seafood, mainly shrimps, for
more than two decades, sharing 53 percent of the total export to the world. Of the total 60
percent are exported through the fish harbor auction hall.

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PAKISTAN TOTAL FISHERY PRODUCTS EXPORTS
PERCENTAGE
99.75
0.25
Total World Fishery Products Export Pakistan Fishery Products Export
Table No: 4.3.1
Catch of Fish on Mekran Coast Balochistan
S.No Special
Group
2001 2002 2003 2004 2005
1 Indian
Mackerels and
Similar Species
163.27 173.82 314.79 18,855.17 18,539.9
2 Herrings Sardine
of Similar
Species
187.32 153.32 198.19 10742.19 19630.8
3 Eles Obranches
Sharks ,Skates &
Ray
12.09 102.98 76.53 6589.20 5393.82
4 Cuttle Fish .29 2.27 2.11 124.63 99.04
5 Marine Lobsters 0.45 3.00 2.68 230.13 153.62
6 Marine Shrimps 0.74 6.39 6.42 317.80 546.55
7 Teleostean Flat
Fish
70.71 52.38 34.39 3003.17 2160.56
8 Salmons ,Trout
& Similar
Species
4.60 15.76 N / A 409.09 430.95
9 Other Marine
Telec Tean
740.82 701.69 600.77 83873.03 65555.86
10 Crabs N / A N / A N / A N / A 65.42
11 Ivory Shell N / A N / A N / A N / A 66.74
1180.29 1211.63 1235.88 124144.40 112642.34

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44..33..11 PPrroobblleemmss ffaacceedd bbyy tthhee sseeccttoorr
 Lack of Processing Plants and technology:
Sea food processing plants play a vital role in the development and economy of the
fisheries sector. The fisheries industry can only attain its target production when
internationally standardized quality of the fisheries product is produced.
In the prevailing circumstances the industry is unable to produce quality product for the
export markets. One of the major reasons has been the absence of appropriate technology.
There are quite few processing plants in the Balochistan and Sindh coastal belt. The
existing processing plants also face problems attaining quality production certificates and
technological up gradation. Most of the processing units in the country are equipped with
local versions of the processing machinery with little or no calibration, high electricity
consumption and low quality production
These plants have limited production capacity with Primitive technology. These plants
are most of the times incapable to process large fish catch and cannot facilitate large
orders placed by the importing firms.
Another factor involved is the lack of skills among the processing workers, who have not
been provided with required training on handling fish catch.
This situation was mainly attributed to unorganized nature of private sector, lack of focus
in Government policies and little institutional investment (in public and private sector
projects) in this sector.
 Incapability of meeting cool chain system:
As there is no proper cool chain established, therefore, there exists a parallel distribution
system for the fresh fish reaching the processing plants. As an industry practice, the
processing units acquire fish catch supplies either, directly from the boat owners in small
lots, or from the auction hall. This results in spoilage and degradation of fresh fish. As a
result, the final product fails to attain its target price.
 International Certifications:
As part of the food product, export of sea food to international market is subject to the
rules and international certifications. Most of the sea food processors in Pakistan either
do not have the knowledge to get international certificate or do not comply to meet the
certification requirements. Therefore the final export product is sold at lower the market
rate.

15
 Lack of Training and Development for Fisheries Sector:
Fishing practices and processing is an interdependent process. The processing plant
cannot convert a fish catch of low quality into acceptable quality grade. The processing
industry suffers as a whole due to lack of training and development for the fisheries
sector.
Product hygiene training for fishermen is a must for good quality processing. Due to lack
of training and development in this area, the processing industry is not showing the
required results.
Lack of skilled work force for sea food processing plant is also another issue that pose
problems for the processing industry.
44..44 RReeggiioonnaall DDiissttrriibbuuttiioonn
More then 30,000 people are associated directly with fisheries sector employing about
6200 fishing boats. All boats are wooden with inboard mechanized engines.Gwadar
district annual production of fishery is more than 107,568 metric tons. Boat
manufacturing units are operating in Gwadar from very old times and still manufacturing
wooden boats of various sizes and kinds, starting from small fishing boats to heavy
fishing and cargo vessels. Town wise distribution of fish catch, boats and fishermen is as
following in the table 4.4.1.
Table No: 4.4.1
Annual Tehsil Wise fisheries catch from District Gwadar (2004-2005)
S.No Town of the District
Gwadar
No of
fishermen
No of Fishing
Boats
Annual Production in
Metric Tons
1 Gwadar 7715 1102 31520
2 Surbander 3745 546 9683
3 Pasni 6466 1240 27270
4 Ormara 4796 860 15758
5 Pishokan 3468 438 96451
6 Jewani 4248 573 13693.
TOTAL 40,438 4,759 107,568
*Source: BCDA, SMEDA Survey.

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Table No: 4.4.2
Number of Fishing Crafts On Balochistan Coast.
Year No. Lanches No Mechanized Boats No. of Motorized Boats Total
2005 72 1510 4556 6138
55 MMAARRKKEETT IINNFFOORRMMAATTIIOONN
55..11 IInntteerrnnaattiioonnaall EExxppoorrtt MMaarrkkeett
European Union, Japan, and USA are the largest sea food consumers in the world.
Whereas U.A.E, Russia, Malaysia, Thailand, Singapore and Indonesia are also the
emerging export markets for the sea food processing industry. Sea food exports to these
regions are subject to the international quality certifications and a processing plant should
be able to meet the criteria set by the importing country. Product hygiene, processing
technique and machinery are some of the major issues which must be catered to by the
processing plant owner to export in these regions.
Statistics for 2001, regarding international import and export markets is as follows
Table No: 5.1.1
World Import of Fisheries Products in Value. 2001
S.No Country Share in the World Market Value in US Dollars
1 E U 34%
Japan 23%
Developing Countries 18%
USA 17%
Others 8%
50 Billion
Table No: 5.1.2
World Export of Fisheries Products in Value. 2001
S.No Country Share in the World Market Value in US Dollars
1 E U 21%
Japan 1%
Developing Countries 50%
USA 6%
Others 22%
30 Billion

17
55..22 LLooccaall SSeeaa FFoooodd MMaarrkkeett
Pakistan’s domestic consumption is termed as one of the lowest in the world, at 1.6 kg
per person per year (compared to world average of 16.2 kg per person per year). This
figure indicates a huge potential for sea food sector in Pakistan. Quantity of processed sea
food consumption in Pakistan is negligible. Frozen sea food supply to local markets of
Pakistan cannot only increase consumption trends but also have the potential to bring
new business ventures in the supply chain.
Karachi, Lahore, Islamabad, Quetta and Peshawar are some of the markets which show a
potential for sea food supply. At present, only the Karachi markets have availability of
fresh sea food in terms of variety and quality because of existing supply chain and
production. Lahore, Quetta, Peshawar and Islamabad can be target market if a cool chain
system is attained.
5-Star Hotels and restaurant chain owners in the said cities are also a potential market for
local sea food supply. The supply can be increased through an effective cool chain and
consistent production of variety of sea food product.
55..33 SSuuppppllyy CChhaaiinn ooff FFiisshheerriieess iinn PPaakkiissttaann::
Focusing on Sea Fishing Supply Chain, Pakistan Sea Food distribution is similar to other
countries or Sea Ports in which following stakeholders are involved:
Sea Food Supply Chain can be categorized into three different types:
1. Sea Food distribution to different areas of Balochistan and Sindh from Harbor.
2. Sea Food processing in Gwadar and Karachi for Export Market.
3. Sea Food exports from Gwadar and Karachi port.
Role of Stakeholder
Following are the stakeholders in the seafood supply:
 Fishermen
 Middlemen
 Local Mandi/ Market
 Processing Plant owners
 Transporters
 Middlemen Karachi
 Exporters
 Retail Shop keepers
 End User

18
Above-mentioned stakeholders might vary according to supply of seafood items. For
example if the Fish is directly distributed from Gwadar to different areas of Balochistan
then only first 3 stakeholders might be involved.
55..44 IInntteerrnnaattiioonnaall QQuuaalliittyy CCeerrttiiffiiccaattiioonn,, HHAACCCCPP::
Export to international market is dependent on the Quality and safety assurance
certifications. These certifications legitimize the export process of the processing plant.
The certifications will help in getting market share to the EU, US and Japanese sea food
market. These certifications are issued after thorough inspection of the processes
involved in the sea food processing plant. These will help in assuring product hygiene i-e
the final product is free from all Becteria’s and viruses.
HACCP certification is the most important certificate for the sea food processing plant. In
order to get a share in EU, US and Japanese markets following are some of the important
quality certifications that help in attaining a product share in the said markets.
55..44..11 HHAACCCCPP CCeerrttiiffiiccaattiioonn
The HACCP system was introduced in the United States in 1971 by the Pillsbury
Company in collaboration with the National Aeronautics and Space Administration
(NASA) and the US Army Natick Research and Development Laboratories. These
agencies had the initial responsibility for designing and manufacturing food products and
hardware which were to provide 100 percent assurance that either the food products
would not be contaminated with pathogens, bacteria or viruses which could cause illness
or that the equipment would function with zero defects. The HACCP system has become
the internationally recognized system for the management of food safety for all
companies involved in the production, transformation, storage and distribution of food
for human consumption. It has been adopted by the European Union (EU) for all food
processors and the Codex Alimentarius Commission as the principal food safety system
(EU Directive 93/43/EEC; Codex Alimentarius – Alinorm 93/131, 1993)
The HACCP process involves the identification of specific hazards throughout the entire
process involved in the production of a food product and focuses on the preventative
measures for their control to assure the quality and safety of the food. This includes
analysis of raw material sources and usage, processing equipment, operating practices,
packaging and storage, together with marketing and conditions for intended use. There is
less reliance on the traditional system of end product testing and food safety is built into
the product from conception through design and distribution.
HACCP shifts the responsibility to the food producer to ensure that the product is safely
consumable.
The following is a list that is included (at a minimum) in the hazard analysis:
 Ingredients and raw materials: source, composition, handling, transportation, and
storage

19
 Activities conducted in the process and handling system: steps identified on the
flow diagram
 Equipment used in manufacture and processing: specific parameters important to
controlling, reducing, or preventing hazards
 Equipment and facility sanitation
 Food product distribution: transportation, delivery, wholesale/retail practices, and
intended use
Documentation of the hazard analysis includes a written summary providing relevant
scientific references. In addition, the information should be summarized in a narrative
statement and listed on appropriate forms.
Annexure I of the report gives the addresses of the HACCP certification issuing authority
and associated certifications for HACCP qualification.
55..44..22 FFDDAA CCeerrttiiffiiccaattiioonn::
The U.S. national regulatory authority for public protection and seafood regulation is
vested in the Food and Drug Administration (FDA). The FDA operates an oversight
compliance program for fishery products under which responsibility for the product's
safety, wholesomeness, identity and economic integrity rests with the processor or
importer, who must comply with regulations promulgated under the Federal Food, Drug
and Cosmetic (FD&C) Act, as amended, and the Fair Packaging and Labeling Act
(FPLA).
55..55 SSeeaa FFoooodd PPrroodduucctt lliinneess::
Sea food product lines mainly include frozen fish and shrimp products. Shrimps are
categorized as headless and head-on according to the market demand. Frozen shrimps are
mostly packed into paper boxes and weight ranges from 2- 4 kg packs.
Frozen fish is packaged according to the international requirements. Mainly the fish
product is packed into 10kg cotton boxes with names and company brand on it, whereas
for national supply fish is packed into bags of weight ranging from 2 kg to 10 kg packs.
55..55..11 QQuuaalliittyy aanndd PPrroodduucctt lliinnee::
Sea food is a delicate and perishable food item. The quality of the product is defined by
its
 Appearance.
 Freshness.
 Packaging.

20
55..55..22 PPrroodduucctt GGrraaddee
Table: 5.5.2.1 Market Segmentation According to Grade and Quality Preference
GRADE Description Target Market
AA The products in this grade signify the
best sea food in terms of its Size,
quality, packaging and freshness.
The species in this Grade are marked to
get highest product price.
AA grade products are marketed and get
easy accessibility to EU, USA, Japanese
markets with good price.
A The products in this grade are termed as
the best in terms of quality and
freshness.
The species in this Grade are marked to
get an acceptable export product price.
A grade products are exported to the said
markets with comparatively lower prices
those AA products. However good
packaging and timely order delivery can
increase the final price.
B The buyer of the product makes some
compromise on the quality. The fish
catch with a change in color or lacking
some freshness comes in grade.
The final price of this product is
comparatively low; therefore the plant
owner makes effort to save the catch
from turning into B Grade.
Export market will be focused for the B
grade products however rates competitive
to the exports market also exists locally for
the B grade products.
H Improper handling of the fish catch at
sea or mismanagement in keeping the
cool chain makes the fish turning into H
grade. This grade has less chances of
getting accessibility for the export.
Whereas local fish markets of Pakistan
is supplied mostly with H grade fish.
Most of the H grade is also converted to
the fish meal that is treated as a
wastage.
An effective cool chain after the processing
can make an H grade product highly
acceptable to the local market. Local retail
markets will be the target market for the H
grade.
(Source: Industry analysis and experts opinion)
55..66 TTaarrggeett CCuussttoommeerrss
The target customers for a Sea food processing Plant mainly include:
 International Export Markets of European Union, USA and Japan.
 The processing plant can also exploit the growing consumer market of
Afghanistan.
 Sea food supply market of Pakistan.

21
66 TTEECCHHNNIICCAALLAANNAALLYYSSIISS
66..11 FFiisshh SSppooiillaaggee::
As soon as a fish dies, spoilage begins. Spoilage of fresh fish is a complex process and is
caused by a number of inter-related systems, some of which are suppressed by others.
The factors which principally contribute to the spoilage are the degradation of protein
with a subsequent formation of various products like hypoxanthine, trim ethylamine,
development of oxidative rancidity and the action of micro-organisms.
The first obvious way to avoid spoilage and loss of quality is to keep caught fish alive
until cooking and consumption. Fish begins to spoil immediately after death. This is
reflected in gradual developments of undesirable flavors, softening of the flesh and
eventually substantial losses of fluid containing protein and fat. By lowering the
temperature of the dead fish, spoilage can be retarded and, if the temperature is kept low
enough, spoilage can be almost stopped.
66..11..11 FFoouurr PPhhaasseess iinn FFiisshh SSppooiillaaggee::
The four phases of fish spoilage are as follows,
Phase I
(Autolytic changes,
caused mainly by
enzymes)
Fish just caught is very fresh and has a sweet, seaweedy and
delicate taste. There is very little deterioration, with slight
loss of the characteristic odour and flavour. In some
tropical species this period can last for about 1 to 2 days or
more after catching.
Phase II
(Autolytic changes,
caused mainly by
enzymes)
There is a significant loss of the natural flavour and odour of
fish. The flesh becomes neutral but has no off-flavours, the
texture is still pleasant.
Phase III
(Bacteriological
changes, caused
mainly by bacteria)
The fish begins to show signs of spoilage. There are strong off-
flavours and stale to unpleasant smells. Texture changes are
significant, flesh becoming either soft and watery or tough and
dry.
Phase IV
(Bacteriological
changes, caused
mainly by bacteria)
Fish is spoiled and putrid, becoming inedible.
66..22 CChhiilllliinngg PPrroocceessss
Chilling is the process of cooling fish or fish products to a temperature approaching that
of melting ice.
The purpose of chilling is to prolong the shelf-life of fish, which it does by slowing the
action of enzymes and bacteria, and the chemical and physical processes that can affect
quality. Reducing the temperature at which the fish is kept lowers the rate of
deterioration. During chilling the temperature is reduced to that of melting ice, 0 °C/32 °.

22
All species of fish, when properly chilled, will stay fresh for longer periods than those
that are not preserved in any way. The use of chilling techniques such as ice, therefore,
effectively prolongs the length of time of the catch. Products brought to market in a well-
preserved condition will generally command higher prices, both at wholesale and retail
levels, and thus give better returns to the fishing operation.
Most effective method employed for chilling process is a combination of ice and water.
Ice is widely used for the purpose. For the purpose of fish handling, flake ice
recommended for chilling process as the physical shape of the flake ice favors fish
66..33 FFrreeeezziinngg::
Freezing and frozen storage of fish can give a storage life of more than one year. It has
enabled fish processing plants to keep the product for long periods. Freezing allowed the
stockpiling of fish during periods of low demand and high catching rates, as well as
widened the market for fish products of high quality.
66..33..11 TTyyppeess ooff FFrreeeezzeerrss
The three basic methods of freezing fish are:
 Blowing a continuous stream of cold air over the fish - air blast freezers.
 Direct contact between the fish and a refrigerated surface - contact or plate
freezers.
 Immersion in or spraying with a refrigerated liquid - immersion or spray freezers
66..33..11..11 BBllaasstt FFrreeeezzeerrss
This is the most efficient and effective method of freezing. The method recommended in
this pre feasibility is Blast freezers. In this method, the use of air to transfer heat from the
product being frozen to the refrigeration system is probably the most common method
used in commercial refrigeration. The natural convection of the air alone would not give
a good heat transfer rate, therefore, forced convection by means of fans has to be
introduced. To enable the product to be frozen in a reasonable time the air flow rate
should be fairly high.
Batch air blast freezers. Batch air blast freezers use pallets, trolleys or shelf
arrangements for loading the product. The freezer is fully loaded, and when freezing is
complete, the freezer is emptied and reloaded for a further batch freeze. Apart from this
difference in mode of operation, the batch freezer gives rise to bigger fluctuations in the
refrigeration load than continuous or batch-continuous freezers.
Because of compatibility and efficiency in the present industry structure, freezing
technology recommended for the proposed project will be batch air blast Freezers.

23
66..33..11..22 PPllaattee FFrreeeezzeerrss::
Plate freezers and air blast freezers are the types of freezer most commonly used for
freezing fish in industrial countries. Plate freezers do not have the versatility of air blast
freezers and can only be used to freeze regularly shaped blocks and packages.
Plate freezers can be arranged with the plates horizontal to form a series of shelves and,
as the arrangement suggests, they are called horizontal plate freezers (HPF). When the
plates are arranged in a vertical plane they form a series of bins and in this form they are
called vertical plate freezers (VPF).
66..33..11..33 SSpprraayyiinngg wwiitthh aa rreeffrriiggeerraatteedd lliiqquuiidd (( LLiiqquuiidd NNiirrttooggeenn // ccaarrbboonnddiiooxxiiddee))::
In this freezer, the product is brought into direct contact with the refrigerant.
The fish on the stainless steel conveyor belt initially come into contact with the counter
current flow of nitrogen gas at a temperature of about -50°C. Alternatively liquid
carbondioxide can also be sparyed on the fish as refrigerant at a temperature of about -50
C. As the fish progress through the precooling stage of the freezer, the gaseous nitrogen
partially freezes the fish and up to 50 percent of the product heat is extracted. The
product then passes below the liquid spray where freezing is completed by the boiling
liquid. The last stage in the freezer provides a few minutes for the fish temperature to
reach equilibrium before the fish are discharged.

24
This method is considered the most advance and expensive practice in freezing
technology. This method is employed in those countries which have regular supply of
liquid nitrogen or liquid carbon dioxide
66..44 PPaacckkaaggiinngg ooff FFrroozzeenn FFiisshh::
After fish has been frozen, it can be subjected to many forms of deterioration between
production and eventual consumption. Contamination from humans, animals, insect and
atmospheric sources are possible. To prevent or reduce losses in product quality, it is
essential that the frozen product is packaged in such a way as to provide an effective
barrier with sufficient impact and compression strength to prevent damage. The
packaging material must have adequate barrier properties to reduce losses due to
dehydration and pick-up of taints. The range of packaging material for frozen fish is very
wide and is dependant on the form of the product being packed.
For the export market in fisheries sector, primarily plastics and Cartons are employed for
packaging frozen fish products. However for local supply across Pakistan, the fish
product can be packages in Bags as well. A brief of the packaging material is as follows,
66..44..11..11 PPllaassttiiccss::
The primary package in contact with the frozen product is generally a plastic derived
from a natural hydrocarbon source. The choice of which plastic wrapper is dependant on
the type of barrier required, and if the product is to be cooked or heated in the container
66..44..11..22 CCaarrttoonnss::
Cartons are also regarded as primary packages when used as a protective sleeve to the
product. The boards for the cartons can be made of :
 Kraft boards. These are frequently used for packaging frozen foods and are
usually made from fully bleached materials. They are strong, of good appearance
and are suitable for direct contact with food.
 Folding box boards. These usually have one fully bleached side which is suitable
for direct contact with food.
66..44..11..33 BBaaggss::
Due to its availability and cost effectiveness, frozen fish and shrimps can be packed
directly into bags made from materials with good gas vapor and moisture barrier
properties. The level of sophistication can range from manual weighing and loading to a
highly sophisticated form-fill-seal technology where a specified weight, volume or count
of product is filled into a formed bag which is heat sealed. Such equipment can be used
for packing peeled shrimp and fish fingered.

25
Fish Catch
from
Auction Hall
/Boats
Receiving
and
Weighing in
Plant
Icing /washing
and
Segregating
into AA,A,B
and H Grades
Packaged
Product Lots
into Cold Store
Processing
Hall.
Grading and
Packaging
Processing Hall
Re-Packaging
and Grading
Transportation
66..55 PPrroocceessss FFllooww CChhaarrtt
The process flow chart for the Sea Food Processing Plant is given below
66..66 RRaaww MMaatteerriiaall // MMaarriinnee FFiisshh CCaattcchh::
Fresh fish of the sea can be termed as the raw material for the processing plant. The sea
food processing starts from the fishing boats. Fresh fish catch from small boats operating
on daily basis along the sea are one of the major suppliers of the fresh fish for processing
plants. Whereas deep water fishing vessels and trawlers also supply considerable amount
of fresh fish for the processing plant.
B
L
A
S
T
F
R
E
E
Z
I
N
G

26
77 MMAACCHHIINNEERRYY RREEQQUUIIRREEMMEENNTT FFOORR TTHHEE SSEEAA FFOOOODD PPRROOCCEESSSSIINNGG PPLLAANNTT
Following are the basic machinery requirements for Sea food processing plant.
77..11 MMaacchhiinneerryy aanndd EEqquuiippmmeenntt
Although the machine installation costs are included with the respective machine costs
but some of the installation costs would be borne by the owner of the plant such as Rs 2.5
million as calculated for the project. Installation will require at least 4 months time. Once
the machinery is purchased, the operation can be started after at most 6 months.
Machinery / Description / Specifications Quantity Unit
Price/Rupees
Total
Flake Ice Machine Capacity (25 T / 24 Hours)
Storage Bin , Capacity ( 12 Tons)
2
2
6,800,000
525,000
13,600,000.00
1,050,000.00
Blast Freezers , Capacity (2T / 8 Hours) -30 C
 Bitzer 2 Stage Condensing Units.
 2 Low Temperature Cooling Coils with
Control Panels
4 1,800,000 7,200,000.00
Cold Store , Capacity ( 250 T , 50x 50x 15) -30 C
 Unit Capacity 4 x 2 Stage Condensing Unit.
 4 Cooling Coils with Control Panels.
4 2,240,000 8,960,000.00
Individual Quick Freezing Machine (IQF Plant), Per
Hours Capacity, 500kg Shrimp/Fish @ -35 C
1 14,000,000 14,000,000.00
Central Air conditioning System
 Processing Hall
1 800,000 800,000
Tables and Racks 8,000,000
Tube Well, Transformer & water pump etc. 1 1,800,000
Generator 1 1,400,000 1,400,000
Machinery Installation Cost 2,500,000
Total Cost 55,510,000

27
77..22 MMaaiinntteennaannccee CCoossttss
Machine maintenance would be an on going process and is calculated to be Rs 50 per
ton processed. Since the machine is locally manufactured therefore availability of spare
parts is not an issue.
77..33 VVeehhiiccllee
The facility will require 2-open Trucks with 2-referigerated containers and a pickup
shezor. To carry its final product for shipment the factory usually works on hired
transportation. Whereas the factory truck will operate on daily basis to transfer fish catch
from the near by areas to the plant in case of heavy fish landing. The Shahzor trucks is
used for daily operations of the factory that include workers transportation and other
associated jobs.
Detail Quantity Unit Price Total
Truck 2 4,000,000 8,000,000
Refer container 2 1,500,000 3,000,000
Hyundai Shehzore 1 965,000 965,000
Office vehicles cost 11,965,000
Registration fee 1% 119,650
Total Office Vehicles cost 12,084,650

28
88 OOTTHHEERR OOFFFFIICCEE RREEQQUUIIRREEMMEENNTTSS
Table 8.1 Office Equipment
Office furniture cost Rs. 1,216,500 and Office Equipment costs Rs. 800,000 and would include a
computer, a fax, a telephone, and the intercom system.
99 HHUUMMAANN RREESSOOUURRCCEE RREEQQUUIIRREEMMEENNTT
The manpower required for operating the Warehouse is as follows:
TTaabbllee 99--11 HHuummaann RReessoouurrccee RReeqquuiirreemmeenntt DDeettaaiillss
Description No. Salary Total Monthly Salary
Manager 1 40,000 40,000
Accountant 1 20,000 20,000
Office Assitant 1 12,000 12,000
Store Keeper 1 15,000 15,000
Generator Operator /Oiler 2 10,000 20,000
Compressor Operator 2 10,000 20,000
Helper 5 8,000 16,000
Drivers 3 8,000 24,000
Watchman 2 10,000 20,000
Production Hall Supervisor 2 12,000 24,000
Packaging / Loading Foreman 3 12,000 36,000
Cold Store In charge 2 12,000 24,000
Janitors 2
1100 LLAANNDD AANNDD BBUUIILLDDIINNGG RREEQQUUIIRREEMMEENNTT
1100..11 LLaanndd RReeqquuiirreedd
A total land of around 2 acres would be sufficient enough for the whole facility. The
average estimated cost of 2 acres land is Rs 2.46 million. However the land cost of
Industrial Areas of other proposed locations might vary.
1100..22 BBuuiillddiinngg aanndd IInnffrraassttrruuccttuurree
For the facility, it is required to build structure comprising of heads shown with the
building costs in table 10.2.

29
TTaabbllee 1100..22..11 BBuuiillddiinngg//IInnffrraassttrruuccttuurree CCoosstt DDeettaaiillss
Detail Area in Sq.Ft. Rate/Sq.ft. Total Cost
Management building 1,000 800 800,000
Factory 8,000 800 6,400,000
Godown 2,000 800 1,600,000
Labour Quarters 900 800 720,000
Boundry Wall 300 350 105,000
Water Tank - - 120,000
Cold Store 4,000 1,200 4,800,000
Cafeteria 600 800 480,000
Pavement/driveway 2,500 350 875,000
Grounds 3,800 150 570,000
Total Infrastructure 16,470,000
1100..33 UUttiilliittiieess RReeqquuiirreemmeenntt
The machinery setup will require electricity and ample water supply. A transformer and a
tube well with a water pump and water tank is already mentioned in the capital cost
details.
1100..44 RReeccoommmmeennddeedd MMooddee
It is recommended to acquire/buy the total land required as most of the machinery
required needs fixed installation and cannot be moved easily once installed.

30
1111 PPRROOJJEECCTT EECCOONNOOMMIICCSS
1111..11 PPrroojjeecctt CCoosstt
Capital Investment
Land 2,460,000
Building/Infrastructure 16,470,000
Machinery & equipment 800,000
Furniture & fixtures 1,216,500
Office vehicles 12,084,650
Office equipment 57,310,000
Pre-operating costs 1,083,519
Total Capital Costs 91,424,669
Working Capital
Equipment spare part inventory 79,063
Raw material inventory 26,881,250
Upfront insurance payment 644,233
Cash 1,500,000
Total Working Capital 29,104,545
1111..22 PPrroojjeecctt RReettuurrnnss
Equity Project
IRR 46% 38%
Payback Period (yrs) 4.37 4.19
Total Project Investment 120,529,214
1111..33 PPrroojjeecctt FFiinnaanncciinngg
Initial Financing Rs.
Debt 60,260,633
Equity 60,260,633

Pre-feasibility Study Sea Food Processing Plant
31

32

33

Pre-feasibility Study Marble &Granite Warehouse
BAL-PREF-06/January, 2005
34
1122 KKEEYY AASSSSUUMMPPTTIIOONNSS
TTaabbllee 1133--11 DDiirreecctt CCoossttss// TToonn
Description Cost/Ton in Rs.
Direct Labor Cost
Machine Maintenance Cost
Direct Electricity Cost
Direct Water Cost
Direct Fuel (Tractor Diesel) Cost
Total Direct Cost/Ton
TTaabbllee 1133--22 RReevveennuuee AAssssuummppttiioonnss
Facility capacity
Price charged per Ton in year 1 (from Exports) 60,000
Price charged per Ton in year 1 (Local market) 40,000
Weighted average sale price 46,000
TTaabbllee 1133--33 PPrroodduuccttiioonn RReellaatteedd AAssssuummppttiioonnss
Production capacity utilization 50%
Production capacity utilization growth rate 8%
Maximum capacity utilization 95%
Cost of goods sold 1 34,000
Cost of goods sold growth rate 8.0%
Operating costs 2 (machinery maintenance) 100
TTaabbllee 1133--44 EEccoonnoommiicc RReellaatteedd AAssssuummppttiioonnss
Inflation rate 6%
Wage Growth rate 10%
Electricity Growth Rate 6%
Water Price Growth Rate 6%
Vehicle Price Growth Rate 6%
Office Equipment Price Growth Rate 6%
TTaabbllee 1133--55 EExxppeennssee AAssssuummppttiioonnss
Administration Benefit Expense 10% of Admin Expense
Traveling Expense 30% of Admin Expense

Pre-feasibility Study Marble &Granite Warehouse
BAL-PREF-06/January, 2005
35
Communication Expense 40% of Admin Expense
Office Expense 20% of Admin Expense
Promotional Expense 2% of revenue
Machinery Insurance Rate 5%
Vehicle Insurance Rate 5%
Professional Fee (Legal, Audit etc) 1.5% of revenue
Bad Debt Expense 5% of revenue
Pre-Operational Expense Rs. 68,530
TTaabbllee 1133--66 DDeepprreecciiaattiioonn RRaatteess
Building/Infrastructure 5%
Machinery and Equipment 10%
Furniture & fixtures 10%
Vehicle (tractor) 20%
Office equipment 10%
TTaabbllee 1133--77 CCaasshh FFllooww AAssssuummppttiioonnss
Accounts Receivables Cycle (In Days) 60
Accounts Payable Cycle (In Days) 30
Cash on Hand Rs. 500,000
Fish are caught from October to June, the peak being March to May. Ribbon fish, croakers, sole and some other species are
exported to South Korea and China. Indian mackerel are exported to Thailand, Malaysia and Indonesia, while chilled fish are
exported to Singapore and the Middle East.

the pakistani fishery industry (a study by smeda)

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