A Feasibility Study on Pearl World Ltd - Assignment Point
A Feasibility Study on Pearl World Ltd
Subject: Organizational Behavior | Topics:

Objectives

Some basic objective has encourages us to study to the topics & to prepare the report. They are as follows:

               To know how to conduct a feasibility study of a project.

               To gather knowledge about different project analysis tools- PERT, CPM, GANTT chart etc.

               To know about the various phases of feasibility study of project.

               To know how to cultivate the pearl in freshwater.

               To know the potentiality of pearl cultivation in Bangladesh.

               To portray the relative scheme & project regarding pearl cultivating farm.

               To credit the future development.

               To gather the practical knowledge about pearl cultivation.

               To be informed about the price of pearls & also the amount of pearl cultivating farm.

               To be informed about the amount of demand of pearls.

Limitations

Preparation of feasibility study of Pearl World involves a number of limitations in its various stages. While preparing the report we face the following problems which we tried best to avoid:

Collection of data is a hard job in this stage of project, because there is no such firm in Bangladesh.

     The price and amount of raw material is not accurately known every time.

     It is difficult to estimate and do all the financial projections accurately according to the current market.

Scope

This study provides an immense utility to the study unit by various means the scope of this study is:-

         The main objective of the study is to put the theoretical knowledge of the study into practical experience.

         This project will be as a source of information for further practical applications of the company.

This project will serve as a foundation for further study of the company to understand its o

A pearl is a hard, roundish object produced within the soft tissue (specifically the mantle) of a living shelled mollusk. Just like the shell of mollusks, a pearl is made up of calcium carbonate in minute crystalline form, which has been deposited in concentric layers. The ideal pearl is perfectly round and smooth, but many other shapes of pearls (baroque pearls) occur. The finest quality natural pearls have been highly valued as gemstones and objects of beauty for many centuries, and because of this, the word pearl became a metaphor for something very rare, very fine, very admirable and very valuable.

Valuable pearls occur in the wild, but they are very rare. Cultured or farmed pearls make up the majority of those that are currently sold. Pearls from the sea are valued more highly than freshwater pearls

 General Description of the Venture

The Pearl World is a type of business involves in manufacturing, cultivation and exporting pearls as business. Our only product is cultured freshwater pearl and we are launching our business for the first time in this country in a way of commercialization. As we are first time, so our area of business is limited but we are in a way to make it large and wide.

Our business plan is to collect, produce, cultivate, design, culture, distribute and promote pearls locally and internationally. Our target markets will be Asian countries along with the subcontinent because the USA and Japan has already covered the later market and our target is to cover the rest of the world. We will develop a zero level marketing so that we can be able to create a good relationship with the customers and able to connect them directly to promote our business throughout the world. We believe in quality product and we are liable to create and maintain quality product and provide them to the customer.

We have the plan to create 30% coverage of the total market for the initial time of our business by creating direct communication and information system. Our company is very committed in establishing and maintaining rules and regulations for creating and maintaining smooth and better delivery process without creating any obstacles in it.

We are very concern in maintaining our responsibilities properly for the betterment of our business and achieving customers’ belief and trust on us.

 Industry Background

Freshwater pearl culture started in China 2,000 years ago and the bead-nucleated freshwater cultured pearls were produced at least as early as 1900. Commercial freshwater pearl culture, however, dates back only to the late 1960s and early 1970s, after the key technology had been developed, when tremendous quantities of small, irregularly shaped rice-like freshwater cultured pearls from pearly mussel (wrinkle comb mussel, Cristaria plicata) entered the market. Although, those rice-like cultured peralsdominated Chinese production during the 1980s, in 1984, eventually it was realized that the importance of quality. Pearl culture scientists made changes in technology and, most importantly, in the musselused, resulted in the production of greater quantities of larger and more lustrous round, near-round, and baroque cultured pearls having a variety of color. Recently, the pearly mussel used in pearl culture mostly is triangles sail mussel (Hyriopsis cumingii). Today, Chinese cultured pearls have a great demand throughout the world, 95% Freshwater pearls in the world market come from China. China is producing an estimated 800 to 1000 mt of freshwater cultured pearls annually, of which totally 400 to 500 mt are exported to different countries of Asia, Europe, Africa, and America, such as Japan, Korea, India, Thailand, Britain, Germany, U.S.A, Canada, Australia, South Africa, etc. in which larger than 8 mm pearls represent of a percentage (Hua Dan 2001)

Since 1953, freshwater pearls called ‘Biwa pearls’ have been cultured commercially in Japan. The Japanese freshwater mussel Hyriopsis schlegelii abound in lake Biwa in Shiga province. It is reported that 47 cultured farms with a water area of 110 ha in lake Biwa, and 16 farms with an area of 13ha in lake Kasumiga-ura are producing 8 to 10 mt of cultured pearls annually (Kalfuku and Ikenone 1983; Ward 1985; Simard 1992).

In Europe, the freshwater pearly mussels Margaritifera spp. And Unio spp. are well distributed (Bauer 1986).

In U.S.A, Mississippi River is the main source of the raw material for manufacturing the shell bead nuclei used for pearl culture operations. Megalanias spp. was being exported to China and Japan bead (Fasseler 1992).

Among South-East Asian countries, Bangladesh, India, Thailand, Philippines and Vietnam have initiated commercial freshwater pearl culture projects in recent years (Fassler 1994; Algarswami et al. 1980; Hua Dan 2001)

It is reported that about 150 kg of natural pearls are collected annually from the mussels Lamellidens marginalis and Parreysia deccaensis in Bangladesh (Anon 1986).

The Governement of Bangladesh with the assistance of Food and Agriculture Organization of the United Nations had undertaken pearl culture research projects from 1984 to 1986. Unfortunately, no positive results had been achieved those projects (Rudollo Pagcatipunan 1986)

Recently, BFRI are conducting pearl culture research at a limited scale under a core research project from 1999 for 3 years.(BFRI 1999). In the meantime, BFRI conducted a field survey on the present status of pearl culture and its development potential which shows that no commercial pearl culture has yet been developed in Bangladesh (Mazid 2001). But the report says that the pearl available in the market is collected from natural sources indicating about its good prospect. The book on pearl; culture management (Paul 2000) also holds similar idea.

In May, 2001, a Chinese pearl culture consultant Ms. Hua Dan under the World Bank Project of Agricultural Research Management Project, joined the BFRI pearl culture research program and initiated the activities of survey on native mussels, training of scientists at BFRI, freshwater pearly mussels operation and operated mussel culture and management. Encouraging results have been obtained after only 2 months of operation that tiny pearl was produced in mantle tissue operated mussels. Nuclei pearls and image pearl were also formed with a cover of thin pearl layer (nacer).

Therefore, the preliminary results indicate that the pearl culture is promising in Bangladesh.

As we are very new in this industry, that’s why we don’t have such kind of industry background and we are the first company of this country which is formed in a way of commercialization. In our country, pearl business is in a scattered way and business people gather and collect pearls and do business from those scattered sources, but we are the first who are engaged in a systematic business on pearl and working on gathering all those scattered sources in a single term.

Traditional Harvesting of Pearl Oyster in Bangladesh

Islam (1969) gave a brief description on Traditional harvesting of Pearl oyster by a class of people known as “Bodies” who bring up these valuable gems are an itinerant community, having no permanent riparian holdings. They move from place to place with wives and children and camp at night in their flotilla of “dinghies”. Many may not be aware of the fascinating romances in which the history of pearl fishing boats in Bangladesh is wrapped but the emotional folk-lores and ballads of the boatman piercing the still of the night, definitely ring in the ears of those who have occasions on romantic moonlit-nights. Fishing of fresh water mussels, as well as saline water oyster, commence simultaneously from December to mid-June when water level is at the lowest margin.

A “Dinghi” is a round bottom shaped shallow craft with a small hold measuring from six feet in length and two to three and a half feet in breadth, and sometimes a little bigger in size with hood made of split bamboos and canes.

A group of “badias”, 20-30 in numbers, may buy the rights of fishing for mussels in a stretch of water by paying a small fee to the owner of particular beels or lakes for the entire season. In shallow water, these badias feel the shells with their feet and simply pick them up with their bare hands and collect them in baskets or bags. In deep water, however, diving is resorted to. After remaining under for half to one minute, they simply bob up to have a fresh breath and repeat diving till their bags are fully and empty them into the dingis. They generally work for 4-5 hours a day and collect mussels from one mound to one-and-half mounds. If the water is too cold and if they can afford a luxury, they anoint bodies with mustard oil before resuming work.

They also carry their children in the dinghies to help them in emptying the bags and putting their catches by in small holds.

With the coming monsoon, they start moving with their flotilla of dinghies aimlessly, until they reach a place suitable for camping. Traditionally, these badias prefer  to live in a world of their own, away from male and female, engage themselves in various petty trades and professions such as snake charmer witch doctor, basket maker, folk lore singer etc.

Uniqueness of the product or serviceWe are going to establish a first commercialized pearl business in the country by doing pearl culture to export of it without keeping any intermediaries or zero level of marketing to compete with world business. We will provide pearls in 2 ways- as a raw pearl or designed jewelry and for manufacturing to exporting of pearls; we will obviously honor and consider the customer demand and choice in a highest manner.

The Promoters

The promoters of Pearl world Ltd. are the new generations. Though they had not a vast knowledge about constructing a business but since they had made the plan of freshwater pearl cultivation and they are truly interested to do such kind of business. From that time they started their field work to implement their dream project. Since then they are involved in the agriculture sub-sector of economy of this country. The promoters started their business in 2008. Actually the promoters constructed their plan in 2008 and their operation begins in 2009. From the very beginning the promoters involved themselves into the operation in the limited units. Though they are new to the large scale of this business but some of them are experienced in small scale.

Gradually the firm is expanding its operation in new product lines. The promoters have purchased about 2 Acres of land for the production purpose of this business. It is expected by the promoters that the project will play a vital role to meet the scarcity of pearls in the economical sector of the country like Bangladesh.

However, the project is operated in small scale but all these units are performing satisfactorily. The prime promoter of Pearl World is Kazi Tahseen Asad along with Sabrina Nowshin, Zeehan Masud , Fariha Mahmud, Sadia Sultana and S.M. Asraful Hasan.

Promoters

Photograph

Kazi Tahseen Asad, age 26, an MBA (Finance) is the prime partner of Pearl World. She is the Chief Executive Officer and Managing Director of the firm. She has long experience in Agriculture and its sub-sector in the country area. She is very young energetic and dynamic person. She was an active partner of all the small units of the family business for the last 3 years.

Sabrina Nowshin, age 25, BBA (Finance) and ACCA, is also an active partner of the Pearl World. She is the Accounts and finance Director of the firm. However, she does not have much experience in this sector but her academic qualification relating to accounting knowledge will help the firm to achieve the efficiency and effectiveness in the operation. She will look after the day-to-day accounting operation of firm.

Zeehan Masud, age 25 MBA (Marketing) is also an active partner of Pearl World. She is the Marketing Director of the firm. She got the experience to do market of agricultural & fisheries goods in local market and as well as foreign market. Last 3 years he was involves with a fisheries farm.

Fariha Mahmud, age 25, M. Sc (Biology) is one of the most active partners of Pearl World. She is the operation director of the firm. He has technical expertise and related experience to run the pearl culture project.

Sadia Sultana, age 29, BBA (Marketing) is a partner of Pearl World. She is also the sales director of the firm. He has more experience in fisheries projects. He is very much able to run any types of related project and efficient to make effective decision.

S.M. Asraful Hasan, age 30, MBA (Human Resource Management) is a partner of Pearl World. He is the Human resource and Administrative Director of the firm. He has experience as Human resource manager of fisheries for the last 2 years.

Shareholding of the Owner

Pearl World Ltd. is a 100% cultivating firm. It was a dream of the promoters to open a firm like this. They decided to share the capital among them. They contributed capital of the firm. The promoters also decided to take loan from bank. So the current capital structure of the firm consists of debt and equity capital. The debt capital covers 40% of the total capital and equity capital covers 60% of the total capital of the firm.

For the production of the firm’s product, the promoter required 3 acres of lands. They purchased the land in Mymensingh. The cost of the land is 5 million. The share of the company will not be distributed to outsider according to the deal among the promoters.

The promoters divided the share of the farm equally to themselves. So the share belongs to every owner are as follows:

Capital

Name

Percentage of share

Contributed Capital (Taka)

Equity

Kazi Tahseen Asad

16.666666667%

10,00,000

Sabrina Nowshin

16.666666667%

10,00,000

Zeehan Masud

16.666666667%

10,00,000

Sadia Sultana

16.666666667%

10,00,000

Fariha Mahmud

16.666666667%

10,00,000

S.M. Asraful Hasan

16.666666667%

10,00,000

Total=

100%

60,00,000

Summary of Qualification

Name

Age

Education

Experience

Solvency

Shareholding

Designation

Kazi Tahseen Asad

26

MBA (Finance)

3 years

Solvent

10%

CEO

&

MD

Sabrina Nowshin

25

BBA (Finance)

and

ACCA

2 years

Solvent

10%

Accounts and finance Director

Zeehan Masud

25

MBA (Marketing)

2 years

Solvent

10%

Marketing Director

Fariha Mahmud

25

M. Sc (Biology)

3 years

Solvent

10%

Operation Director

Sadia Sultana

29

BBA (Marketing)

2 years

Solvent

10%

Sales Director

S.M. Asraful Hasan

30

MBA (Human Resource Management)

4 years

Solvent

10%

Human Resource & Administrative

Director

Legal form of Business

Pearl world Ltd. is owned & managed by the partners of the firm. Here the Partnership Act 1932 is followed that is all the partners have got the same or equal liabilities. The partnership of the firm is based on a written contract which is duly sign by all partners of the firm. So by law the firm is operated & managed by the articles of partnership.

ARTICLES of PARTNERSHIP

OF

Pearl World

Partners of the firm

Name

Father’s name

Address

Kazi Tahseen Asad

Kazi Hecmat-A-Khuda

154, East Raja bazar, Indira road, Tejgaon, Dhaka-1215

Sabrina Nowshin

Md. Adbus Salam

“Oriental Motif” Flat no.-C5,

House no.-78, Road no. 9/a, Dhanmondi, Dhaka-1205

Fariha Mahmud

M.S. Mahmudur Rahman Khan

House no. 08, Road no.-20/B, Sector-4, Uttara, Dhaka-1230

Zeehan Masud

A.H. Masudul Haque

60-G, North Dhanmondi, Kalabagan, Dhaka

Sadia Sultana

Md. Fazlul Haque

45/A/30, (Baishakhi Housing)

Dhalka nagar lane, Gandaria, Dhaka.

S.M. Asraful Hasan

Md. Adbus Satter

51, West Raza Bazar,

Dhaka-1205

Today 6th March, 2009, An Article of Partnership is created and signed by these partners with a view to establish a partnership firm named “Pearl World Ltd.”. All concerned parties of the article are mature and capable to perform the restrictions of the article. All of them are Bangladeshi by born.

Concerns of the Article:

Name:Pearl World Ltd.
Address:51/3, Bhaluka, Mymensingh, Bangladesh.
Type of business:The firm is involved with production, and marketing of loose pearls and pearl jewellary.
Area of operation:The firm will operate its activities within the boundary of Bangladesh. It can establish its branch office anywhere in the country.
Capital:At the starting point the firm will have a capital of Tk. 40 million. In case of necessity additional capital can be collected from the partners.
Drawing:Every partner can draw maximum Tk 30000 from the business every month and subsequent interest he has to pay the rate for which is 20%.
Distribution of Profit:According to the ratio of capital the profit will be distributed or loss will be covered equally among all partners.
Preparation of

Financial Statement:              

That proper Books of Accounts of the business shall be                   maintained and kept at the office and the partners shall have free access to the Books of Accounts. That an Annual balance sheet for profit and loss shall be prepared which shall be shared by the parties proportionately.
Accounting Period:            The firm will maintain its accounts in a fiscal year consisting of January 1st to December 31st.
Banks:                                     Account of the firm shall be opened in the name of the firm with any schedule bank or banks of Bangladesh. Which shall be operated under the joint signature of any two partners of the firm respectively? In banking transaction the signature of managing partner is mandatory.
Admission of  Partnership:For the overall welfare of the firm new partners can be admitted in the firm but no new partners can be added without the full written consent of the partners.
Retirement &

Death of Partners:

Any partner can take retirement from the firm by providing a three months prior notice. In case of death of any partner his nominee or successor can become a partner on the consent of other partners.
Repayment Of capital:In the event of the death or retirement of a partner, the remaining partner will pay the state or retiring partner the full amount of the original investment. The payment will be made within 1year of the death or retirement of the partner.
Grievance Procedure:If grievances between partners cannot be resolved, an arbitrator will be hired that is acceptable to all partners. The decision reached after arbitration is binding.
Termination:In case of necessity or according to the occurring situation if the termination of the firm has to done, the termination procedure will be followed by the Partnership Act 1932 prevailing in Bangladesh.

 

Change of  Condition:With the consent of all parties, rules & terms of the article can be amended.

We the aforesaid parties agreed with the terms and conditions above and signed consciously with mental soundness mentioned above dated.

Signatures and addresses of the witnesses:

1.

2.

Signatures of the Partners:                          

Signature of the 1st Party                                                          Signature of the 4th Party

 (Kazi Tahseen Asad)                                                                     (Fariha Mahmud)

Signature of the 2nd Party                                                        Signature of the 5th Party

    (Sabrina Nowshin)                                                                        (Sadia Sultana)

Signature of the 3rd Party                                                          Signature of the 6th party

     (Zeehan Masud)                                                                        (S.M. Asraful Hasan)

Organizational Structure

Pearl World has got a very sound list of qualified and skilled workforce having wide range of experience in the related position. Under the head of organization structure firm’s organogram is demonstrate and brief explanation is also given for better understanding of the authority and responsibility.

 Management Team

Chief Executive Officer and Managing Director:

Kazi Tahseen Asad is the prime partner of the company Pearl World Ltd. She is Chief Executive Officer and Managing Director of the company. She will be the project in charge and responsible for overall management of the project. She has idea about the Pearl products. He is an active partner of small units of family business for about 3 years.

Finance & Accounting Director:

Sabrina Nowshin is also an active partner of the company. She is the Director Finance & Accounts of the company. She is not quite familiar in this sector but her academic qualification relating to finance and also in accounting can help the company to achieve the efficiency and effectiveness in the operation. She will look after the day-to-day transactions of the company.

 Operation Director:

Fariha Mahmud is also an active partner of the company. She can help in this concern by his skill in the production and development sectors. Her things he can give better idea for the betterment of this kind of business. She also controls, handling, implementing operation of the project as per company policy.

Marketing Director:      

Zeehan Masud is also a partner of this firm. She is also new to this type of business. But she much interest to do this kind of business. She is not experienced in this sector but she has experience in doing jobs. So she can help in building relationship with well distinguished people and develop marketing policies, strategies and ensure their effective implementation to achieve business goal.

 Sales Director:

Sadia Sultana is an active partner of Firm. She Plans and organize various promotional events related to marketing. He also will provide the necessary consultancy for the implementation & smooth Marketing of the firm according to his experience. Contact with sales field force regarding collection/party arrear balance and recommend appropriate action on the basis of field findings to reduce outstanding dues.

Human resource and Administrative Director:

S.M. Asraful Hasan is an active partner of firm. He prepares and implements of policy, orientation guide, employee handbook, joining kit, HR forms and formats and  handle and manage full spectrum of day to day HR function: compensation & benefits, recruitment, performance appraisal, training and development, payroll and Employee`s Relations.

Executives:

Executives of the firm are chosen according to the necessary practical experience and ability to work with a new project. They have got the responsibility to handle the operation of the firm based on the instructions provided by the managers of their respective department.

Consultants & Advisors

S.M. Asraful Hasan is a partner of Pearl World Ltd. He is also the administrative consultant of the firm. He has got more experience in fisheries, shrimp and Pearl cultivating projects. He is very much able to run any types of related project and efficient to make effective decision.

       Be able to demonstrate initiative and the ability to work independently with limited supervision

       Undertake responsibilities for the project implementation and all relevant administrative activities.

       Prepare/collect detailed work schedule and timesheets for the project.

       Time to time interaction with us to discuss the relevant issues and to up-date on project implementation.

       Ensure the quality of the overall project activities.

Banks

The partners of the firm are solvent and they have got property and liquid cash. After that they need some financial support from financial institutions. The management of the firm has selected two banks for submitting the proposal of business and the feasibility study for their kind perusal.

Our bank is:

      Sonali Bank Limited, Head office, Motijil, Dhaka.

Auditors

Firm will maintain a well designed auditing system. Under this system the auditing activities are divided into two parts, i.e Internal & External.

Internal Auditing activities will be performed by the Manager and executives of Finance & Accounts department. They will prepare monthly statement and other supplementary statement as required and make necessary corrections.

External Auditing activities will be handled by a renowned auditing firm name as Haider and Co. (Charter Accounted).

 Human Resource Management

 Staffing Need:

For establishing this project in full capacity we need total 17 employees with Outstanding organizational, interpersonal and communication skills, hard working, independent self-starter, good at problem solving, and love the challenge of achieving ambitious goals.

Staffing Budget:

This is the staffing monthly budget of Pearl World Ltd.:

Designation

No. of Staff

Monthly Salary

Total

Executives

2

7,000

14,000

Experts

5

2,500

12,500

Staff

2

3,500

7,000

Security Guards

2

2,500

5,000

Total =

38,500

 Staffing Planning:

Staffs that are works in the production process unit, they need training for the pearl cultivation and the Mussels operation. They can get training from the Freshwater Aquaculture Research Station (FARS), Mymensingh.

Cost of Project

Our pearl culture project “Pearl World Ltd.” includes various divisional costs including Land and site development, Building and Civil works, Plant and Machinery purchase, purchase of miscellaneous fixed assets, preliminary expanses, preoperative expanse etc. In conducting the Pearl culture and exporting, we maintained various site development works and other civil work. We also collected various fixed assets for the project.

a.      Land and Site development:

We need total 3 acres of land for the project of which the production area needs 2 acres for ponds worth taka 50, 00,000. The rest land used for internal roads, gate, tube well, and plantation.

Land size and location Price per acre Total cost

Particulars

Cost

Cost of Land

50,00,000

Cost of internal road

35,000

Cost of gate

30,000

Cost of tube wells

300,000

Cost  of pond digging and preparation

800,000

Plantation

50,000

Total=

62,15,000

b. Building and Civil works:

In conducting the building and civil works we mainly consider the operation unit and workers accommodation building in the site.

Particulars

Cost

Building for operation unit and workers accommodation

(2500 sq.feet @ Taka 400)

10,00,000

Sanitary fittings

25,000

Gas, Electricity and water line

25,000

Sewerage and drainage

25,000

Lamp posts for light (12 posts @ Taka 5000)

30,000

Shade for security guard (1 room @ 2 guards)

10,000

Total=

11,15,000

 c.      Plant and Machinery:

In our project, we need not to import any machinery from aboard. Our project needs a small amount of small machineries such as operation equipment, shed in the pond bank, water reserve tank on the bank, floating platform in the water and oyster cage. The costs for plant and machinery are as follows:

Particulars

Cost

Operation equipment

10,000

Shed in the pond bank

2,00,000

Water reserve tank on the bank

160,000

Floating platform in the water

160,000

Oyster cage

84,000

Total=

470,000

 d. Miscellaneous fixed assets:

In conducting the business we should spend some amount of money to buy some miscellaneous fixed assets not directly associate in production, such as furniture, catching tools, plastic nets etc. The furniture is depreciated in a straight line method.

Particulars

Cost

Furniture

100,000

Catching tools

5,000

Plastic net

5,000

Total=

110,000

 e. Preliminary expanses:

In conducting the project we have some preliminary expanses regarding the feasibility study and legal work such as – partnership deed. The expanses are:

Particulars

Cost

Feasibility study charge

20,000

Legal expenses

5,000

Total=

25,000

 f. Preoperative expanses:

We have some preoperative expanses also. Such as trade license fee, insurance charges, export license and miscellaneous expanses.

Particulars

Cost

Trade license fee and Govt. fees

5,000

Insurance

10,000

Miscellaneous expense

50,000

Total=

65,000

  Total cost of Project:

Total cost of the project setup including land and site development, building and civil works, plant and machinery setup, miscellaneous fixed assets, preliminary and preoperative expanses are give in the following tabular form:

Particulars

Cost

Land and site development

62,15,000

Building and civil works

11,15,000

Plant and Machinery

4,70,000

Miscellaneous fixed asset

1,10,000

Preliminary Expenses

25,000

Preoperative Expenses

65,000

Total fixed cost=

80,00,000

Working Capital

20,00,000

Total cost of project=

100,00,000

Means of Finance

In our project we use two types of sources of finance.

     Equity and

     Long term loans from bank.

For our project we need total Taka 100, 00,000. Partners of the firm will invest Taka 60, 00,000, and rest of the amount is taken as long term loan from renowned bank, Sonali Bank Limited, Head Office, Motijil, Dhaka.

 Equity:

As we mentioned Taka 60, 00,000 is provided by the partner and each of the partners contributed by the proportion of share-holding. The partners’ contributions are as follows:

Name of the partners

Position

Share holding percentage

Contributed capital (Taka)

Kazi Tahseen Asad

CEO & MD

10%

10,00,000

Sabrina Nowshin

Accounts and finance Director

10%

10,00,000

Zeehan Masud

Marketing Director

10%

10,00,000

Sadia Sultana

Operation Director

10%

10,00,000

Fariha Mahmud

Sales Director

10%

10,00,000

S.M. Asraful Hasan

Human Resource & Administrative Director

10%

10,00,000

Total=

60,00,000

 Long-term loan financing:

We will take long term loan from bank to meet another 4 million taka. The term loan is taken form bank for 5 years and annually equal repayment.

Sonali Bank Limited: From this bank we took 40, 00,000 taka at the rate of 11% interest rate and for 5 years on 01/01/2010. We mortgaged 3 acres of land as security on this bank and the interest that the bank charged is an interest rate and the loan will be repay annually from 01/01/2010 to 01/01/2014. The loan amortization schedule is as follows:

Year

Loan Installment

Loan at the beginning

Interest Payment

Principal Payment

Principal Outstanding

2010

10,81,081

40,00,000

4,40,000

6,41,081

33,58,919

2011

10,81,081

33,58,919

3,69,481

7,11,600

26,47,319

2012

10,81,081

26,47,319

2,91,205

7,89,876

18,57,443

2013

10,81,081

18,57,443

2,04,319

8,76,762

9,80,681

2014

10,81,081

9,80,681

1,00,400

9,80,681

0

 Cost of production

Our partnership firm has various cost of production such as material, utility, labor and various overhead costs. The cost of production relating to pearl culture of our firm is as follows:

 Material cost:

In culturing the pearl along with fish first we need the oyster and young fish, their feeding cost. At the beginning of the business we are going to culture 5000 oyster and 28000 per year.

Raw materials

Unit cost

2010

(5000 oyster & 28000 fish)

2011

(5000 oyster & 28000 fish)

2012

(5000 oyster & 28000 fish)

2013

(5000 oyster & 28000 fish)

2014

(5000 oyster & 28000 fish)

Oyster

1

5,000

5,000

5,000

5,000

5,000

Young fish

0.50

14,000

14,000

14,000

14,000

14,000

Lime

6 per Kg

4,200

4,200

4,200

4,200

4,200

Salt

12 per Kg

1584

1584

1584

1584

1584

Natural fertilizer

1 per Kg

3,000

3,000

3,000

3,000

3,000

Urea

15 per Kg

7,500

7,500

7,500

7,500

7,500

TSP

30 per Kg

3,000

3,000

3,000

3,000

3,000

Oil cake

25 per Kg

75,000

75,000

75,000

75,000

75,000

Total Material cost=

113,284

113,284

113,284

113,284

113,284

Utility cost:

We use electricity, gas, telephone and internet for the production process well as export process. The costs are:

Utility

2010

2011

2012

2013

2014

Electricity

15,000

15,000

15,000

15,000

15,000

Gas

4,800

4,800

4,800

4,800

4,800

Telephone

2,000

2,000

2,000

2,000

2,000

Internet

1,000

1,000

1,000

1,000

1,000

Total=

22,800

22,800

22,800

22,800

22,800

 Estimates of Pearl production and sales:

Particulars

2010

2011

2012

2013

2014

Installed capacity

15000 pieces

15000 pieces

15000 pieces

15000 pieces

15000 pieces

No. of working month

12

12

12

12

12

Estimated Production

9000

9000

9000

Estimated output as % of plant capacity

60%

60%

60%

Estimated sales

7200

8100

9000

Estimated sales in value:

A-1= 30% @ Taka 700 per piece

1512000

1701000

1890000

A-2= 30% @ Taka 500 per piece

1080000

1215000

1350000

B= 20% @ Taka 200 per piece

288000

324000

360000

C= 20% @ Taka 100 per piece

144000

162000

180000

Total=

3024000

3402000

3780000

 Estimates of Fish production and sales:

Particulars

2010

2011

2012

2013

2014

Installed capacity

28000 pieces

28000 pieces

28000 pieces

28000 pieces

28000 pieces

No. of working month

9

9

9

9

9

Estimated Production

22400

22400

22400

22400

22400

Estimated output as % of plant capacity

80%

80%

80%

80%

80%

Estimated sales

17920

19040

20160

21280

22400

Estimated sales in value:

1792000

1904000

2016000

2128000

2240000

 Estimates of Total sales revenue:

Particulars

2010

2011

2012

2013

2014

Pearl

3024000

3402000

3780000

Fish

1792000

1904000

2016000

2128000

2240000

Shell (500 kg @Taka 100 per year)

50000

50000

50000

50000

50000

Oyster Flesh (1000 kg @ Taka 100 per year)

100000

100000

100000

100000

100000

Vegetables and Fruits

1000000

1000000

1000000

1000000

1000000

Total=

2942000

3054000

6190000

6680000

7170000

Labor cost:

As we maintain a chain among the project, we need labor cost to maintain the ponds and site, administrative works. The costs are as follows:

Labor

No. of labors

Monthly salary per person

Total salary

2010

Total salary

2011

Total salary

2012

Total salary

2013

Total salary

2014

Executive

2

7000

168000

168000

168000

168000

168000

Expert

5

2500

150000

150000

150000

150000

150000

Staff

2

3500

84000

84000

84000

84000

84000

Guard

2

2500

60000

60000

60000

60000

60000

 Total=

462000

462000

462000

462000

462000

 Factory overhead cost:

As factory overhead we consider the land tax, depreciation, transportation cost. The cost per year given below:

Factory Overhead

2010

2011

2012

2013

2014

Land tax

1000

1000

1000

1000

1000

Depreciation

58000

58000

58000

58000

58000

Transportation

6000

6000

6000

6000

6000

Parcel

7000

7000

7000

7000

7000

 Total=

72000

72000

72000

72000

72000

Working Capital requirement:

Our working capital requirement for raw material, wages and salaries, utility, factory overhead cost etc. The requirement for working capital for first few years as given below:

Working amount

2010

2011

2012

2013

2014

Material cost

113284

113284

113284

113284

113284

Utility cost

22800

22800

22800

22800

22800

Labor cost

462000

462000

462000

462000

462000

Factory overhead

72000

72000

72000

72000

72000

 Total=

670084

670084

670084

670084

670084

Expected Cash Generation:

Serial No.

Particulars

2009

2010

2011

2012

2013

2014

1

Fixed asset

(8000000)

2

Net working capital

(2000000)

3

Revenue

2942000

3054000

6190000

6680000

7170000

4

Cost

612084

612084

612084

612084

612084

5

Depreciation

58000

58000

58000

58000

58000

6

Interest

440000

369481

291205

204319

100400

7

Profit

1831916

2014435

5228711

5805597

6399516

8

Initial outlay

(10000000)

9

Operating cash flow

1831916

2014435

5228711

5805597

6399516

10

Net cash flow

(10000000)

1831916

2014435

5228711

5805597

6399516

 Projected Income Statement:

Particulars

2010

2011

2012

2013

2014

Sales

2942000

3054000

6190000

6680000

7170000

Cost of production

(442084)

(442084)

(442084)

(442084)

(442084)

Gross profit

2499916

2611916

5747916

6237916

6727916

Operating expense

(228000)

(228000)

(228000)

(228000)

(228000)

Operating profit

2271916

2383916

5519916

6009916

6499916

Non operating income

(440000)

(369481)

(291205)

(204319)

(100400)

Net operating income

1831916

2014435

5228711

5805597

6399516

Graph -1: Net Operating income (5 years)

 In year 2010 and 2011 its satisfactory profit but from year 2012 the profit is increasing per year because from that year the pearls will be sold.

Depreciation Schedule:

Assets

Asset Book Value

Life Period

Depreciation

rate

Depreciation amount

Plant and Machinery

470000

10 years

10%

47000

Miscellaneous fixed assets

110000

10 years

10%

11000

Total=

58000

 Retained earnings statement:

Particulars

2010

2011

2012

2013

2014

Retained earnings of last year

0

1831916

3846351

9075062

14880659

Net profit of current year

1831916

2014435

5228711

5805597

6399516

Less: Dividend paid

0

0

0

0

0

Retained earnings of current year

1831916

3846351

9075062

14880659

21280175

 Projected Cash Flow Statement:

ParticularsConstruction period 2009

2010

2011

2012

2013

2014

A. Sources of fund:      
Owners equity

6000000

0

0

0

0

0

PBIT

2271916

2383916

5519916

6009916

6499916

Depreciation

58000

58000

58000

58000

58000

Increase in term loan

4000000

0

0

0

0

0

Total of (A)

10000000

2329916

2441916

5577916

6967916

6557916

 
B. Disposition of fund:
Capital expenditure for project

8000000

0

0

0

0

0

Decrease in term loan

641081

711600

789876

876762

980681

Interest

440000

369481

291205

204319

100400

Total of (B)

8000000

1081081

1081081

1081081

1081081

1081081

 
Opening balance of cash

0

2000000

3248835

4609670

9106505

14093340

Net surplus or deficit (A-B)

2000000

1248835

1360835

4496835

4986835

5476835

Closing balance of cash

2000000

3248835

4609670

9106505

14093340

19570175

Projected balance sheet:

Particulars

2010

2011

2012

2013

2014

Liabilities and Owners equity:
Term loan

3358919

2647319

1857443

980681

0

Owners equity

6000000

6000000

6000000

6000000

6000000

Retained earnings

1831916

3846351

9075062

14880659

21280175

Total liabilities and owners equity

11190835

12493670

16932505

21861340

27280175

Assets:
Fixed assets

8000000

8000000

8000000

8000000

8000000

Depreciation

(58000)

(116000)

(174000)

(232000)

(290000)

 

7942000

7884000

7826000

7768000

7710000

Cash and bank balance

3248835

4609670

9106505

14093340

19570175

Total assets

11190835

12493670

16932505

21861340

27280175

Ratio Analysis:

In analyzing the ratios we consider time interest earned, return on assets ratio, return on asset, total asset turnover, profitability ratios. The projected ratios of Pearl World Ltd. for next five years are as follows:

Total Asset Turnover:

Year

Total Asset Turnover

2010

0.26 times

2011

0.24 times

2012

0.36 times

2013

0.28 times

2014

0.23 times

 

Graph-2: Total Asset Turnover

The higher a firm’s total asset turnover, the more efficiently its asset has been used. Year 2012 shows the highest asset turnover. This measure is probably of greatest interest to management because it indicates whether the firm’s operations have been financially efficient.

Debt Ratio:

Year

Debt ratio

 2010

30%

2011

21%

2012

10%

2013

4.48%

2014

0%

 Graph-3: Debt ratio

The higher this ratio, the greater the firm’s degree of indebtness and the more financial leverage it has. From the year 2010, the ratio is decreasing per year and the last year it shows zero ratios which means there is no debt all has been repaid.

Time interest earned ratio:

Year

Time interest earned ratio

2010

5.16

2011

6.45

2012

18.95

2013

29.41

2014

64.74

Graph-4: time interest earned ratio

This ratio measures the firm’s ability to make contractual interest payments. The higher its value, the better able the firm is to fulfill its interest obligations. The graph shows that each year our ability to pay the interest is increasing.

Gross Profit Margin:

Year

Gross profit margin

2010

84.97%

2011

85.52%

2012

92.85%

2013

93.38%

2014

93.83%

 

Graph-5: Gross profit Margin

The gross profit margin measures the percentage of cash sales dollar remaining after the firm has paid for its good. The Graph shows that per year the percentage is increasing which better for our company.

Operating Profit Margin:

Year

Operating profit margin

2010

77.22%

2011

78.05%

2012

89.17%

2013

89.96%

2014

90.65%

 

Graph-6: operating profit margin

The operating profit margin measures the percentage of each sales dollar remaining after all costs and expenses other than interest, taxes are deducted. It shows increasing margin each year which is preferred for our company.

Net profit Margin:

Year

Net profit margin

2010

62.26%

2011

65.96%

2012

84.47%

2013

86.91%

2014

89.25%

Graph-7: Net Profit margin

The net profit margin measures the percentage of each sales dollar remaining after all costs and expenses including interest, taxes are deducted. It shows increasing margin each year which is better for our company.

Return on Asset:

Year

ROA

2010

16%

2011

16%

2012

30.87%

2013

26.55%

2014

23.45%

Graph-8: ROA

The return on assets measures the overall effectiveness of management in generating profits with its available resources. Its value indicates that the firm earned percentage on dollar of asset investment. The year 2012 shows highest return on assets.

Return on equity:

Year

ROE

2010

23.39%

2011

20.46%

2012

34.68%

2013

27.80%

2014

23.46%

Graph-9: ROE

The return on equity measures the return earned on the owner’s equity investment in the firm. The higher this return is better. The year 2013 shows highest return on equity.

Overall performance:

Ratio title

Formula

2010

2011

2012

2013

2014

Total asset turnover

Sales

Total asset

0.26 times

0.24 times

0.36 times

0.28 times

0.23 times

Debt ratio

Total Liability

Total asset

30%

21%

10%

4.48%

0%

Times interest earned ratio

EBIT

Interest

5.16

6.45

18.95

29.41

64.74

Gross profit margin

Gross profit

Sales

84.97%

85.52%

92.85%

93.38%

93.83%

Operating profit margin

Operating profit

Sales

77.22%

78.05%

89.17%

89.96%

90.65%

Net profit margin

Net profit

Sales

62.26%

65.96%

84.47%

86.91%

89.25%

Return on Asset (ROA)

Net profit

Total asset

16%

16%

30.87%

26.55%

23.45%

Return on Equity (ROE)

Net profit

Owners equity

23.39%

20.46%

34.68%

27.80%

23.46%

 Calculation of Payback period:

Year

Net cash Flow

Cumulative net cash flow

2010

1831916

1831916

2011

2014435

3846351

2012

5228711

9075062

2013

5805597

14880659

2014

6399516

21280175

 =3.84 years

Calculation of NPV:

Year(t)

Discounted rate (k)

Cash flow

Discounted cash flow

0

11%

(10000000)

(10000000)

1

1831916

1831916

2

2014435

3846351

3

5228711

9075062

4

5805597

14880659

5

6399516

21280175

NPV

4730652

Calculation of IRR:

Year(t)

Discounted rate (k)

Cash flow

Discounted cash flow

Discounted rate (k)

Discounted cash flow

0

11%

(10000000)

(10000000)

 

25%

(10000000)

1

1831916

1831916

1465533

2

2014435

3846351

1289238

3

5228711

9075062

2677100

4

5805597

14880659

2377973

5

6399516

21280175

2096993

NPV

4730652

NPV

(93163)

IRR

24.73%

Scenario Analysis:

Suppose the best case will consider the increasing rate of 25% in sales and decreasing rate in cost and expenses according to 25% and the worst case is the vice-versa.

Year 2010

Particulars

Best case

Base case

Worst case

Sales

3677500

2942000

2206500

Cost of production

(331563)

(442084)

(552605)

Gross profit

3345937

2499916

1653895

Operating expense

(171000)

(228000)

(285000)

Operating profit

3174937

2271916

1368895

Non operating income

(330000)

(440000)

(550000)

Net operating income

2844937

1831916

81889

Year 2011

Particulars

Best case

Base case

Worst case

Sales

3817500

3054000

2290500

Cost of production

(331563)

(442084)

(552605)

Gross profit

3485937

2611916

1737895

Operating expense

(171000)

(228000)

(285000)

Operating profit

3314937

2383916

1452895

Non operating income

(277111)

(369481)

(461851)

Net operating income

3037826

2014435

99104

Year 2012

Particulars

Best case

Base case

Worst case

Sales

7737500

6190000

4642500

Cost of production

(331563)

(442084)

(552605)

Gross profit

7405937

5747916

4089895

Operating expense

(171000)

(228000)

(285000)

Operating profit

7234937

5519916

3804895

Non operating income

(218404)

(291205)

(364006)

Net operating income

7016533

5228711

3440889

Year 2013

Particulars

Best case

Base case

Worst case

Sales

8350000

6680000

5010000

Cost of production

(331563)

(442084)

(552605)

Gross profit

8018437

6237916

4457395

Operating expense

(171000)

(228000)

(285000)

Operating profit

7847437

6009916

4172395

Non operating income

(153239)

(204319)

(255399)

Net operating income

7694198

5805597

3916996

Year 2014

Particulars

Best case

Base case

Worst case

Sales

8962500

7170000

5377500

Cost of production

(331563)

(442084)

(552605)

Gross profit

8630937

6727916

4824895

Operating expense

(171000)

(228000)

(285000)

Operating profit

8459937

6499916

4539895

Non operating income

(75300)

(100400)

(125500)

Net operating income

8384637

6399516

4414395

 Sensitivity Analysis:

By reducing sales at 5%

Particulars

2010

2011

2012

2013

2014

Sales

2794900

2901300

5880500

6346000

6811500

Cost of production

(442084)

(442084)

(442084)

(442084)

(442084)

Gross profit

2352816

2459216

5438416

5903916

6369416

Operating expense

(228000)

(228000)

(228000)

(228000)

(228000)

Operating profit

2124816

2231216

5210416

5675916

6141416

Non operating income

(440000)

(369481)

(291205)

(204319)

(100400)

Net operating income

1684816

1861735

4919211

5471597

6041016

By increasing cost of production at 5%

Particulars

2010

2011

2012

2013

2014

Sales

2942000

3054000

6190000

6680000

7170000

Cost of production

(464188)

(464188)

(464188)

(464188)

(464188)

Gross profit

2477812

2589812

5725812

6215812

6705812

Operating expense

(228000)

(228000)

(228000)

(228000)

(228000)

Operating profit

2249812

2361812

5497812

6443812

6477812

Non operating income

(440000)

(369481)

(291205)

(204319)

(100400)

Net operating income

1809812

1992331

5206607

6239493

6377412

Risk analysis

In our project there are some basic risks involve. Such as –

      As pearl comes from the oyster so the mortality rate might cause risk.

      As oysters are catching from natural sources, it involves the risk of unavailability of oyster.

      Oyster food also depends on the natural sources and has the risk of unavailability.

      It has also the risk of unknown disease of oyster; it may be hampered the process.

       It has the risk of timing of catching.

      Potential competitors might cause risk in sales.

 Corporate Social Responsibility

Every corporate firm has some responsibility towards the society. Pearl World Ltd. will not out of this, being a part of the society the firm planed to perform some social activity. These are as below:

     We will not use any machinery that will harm the environment.

     Mussels help maintain our water clear by eating up floating organic compounds.

     Pearl culture and associate jobs can provide livelihood for many people of this country.

     Shells are very good feed for poultry also.

     We also intend to reserve a fund to help the victims of natural calamities.

     We will take a plantation project.

     We will establish research and training institute in our farm locality where people will get training and become self employed for removing the poverty.

We will definitely concern about the society and environment.

 Business Ethics

Business ethics is concerned with truth and justice and has a variety of aspects such as the expectations of society, fair competition, advertising, public relations, social responsibility, consumer autonomy and corporate behavior in the home country as well as abroad. The business ethics are-

      The Pearl World will determine and fulfill the fundamental purposes of their firm.

      Our firm will concentrate on corporate social responsibilities.

      Consider moral rights and duties.

      Leadership issues.

      Ethical issues concerning relations between different companies.

      Political contribution made by firm.

      Avoid misuse of corporate ethics policies.

      Executive compensation will be provided.

      Monetary fraudulent will be avoided.

      Misleading financial analysis will be prohibited.

      No discrimination will be allowed.

      Issues arising traditional view of employee and employer relationships will be considered.

      Employee privacy will be maintained.

      Anti competitive analysis will be considered.

      Price discrimination will be avoided.

      Loyalty manipulation will be avoided.

      Content of advertisement will be legal.

      Black market will be avoided.

      New technology will be ethical.

      Ethics of product testing will be evaluated.

      Misuse of intellectual property will be maintained.

      Patent, copyright and trademark infringement will be avoided.

Environmental Impact of the Project

Pearl World Ltd. is eco-friendly firm which produces cultured pearls and fish. The reason of being eco-friendly firm is the raw materials don’t create any wastage and every single part of our material are properly utilized. So Pearl World does not impact negatively on environment. Though there is no negative impact so the positive impacts on the environment are given below:

     The visceral meat along with the crushed oyster shell can be effectively used as poultry feed.

     Besides used in the fertilizer industry, the shell can be marketed as a curio or ornamental item.

     Crushed shells have been found to possess excellent cementing properties and can be used for reinforcement along with concrete.

     Grits prepared from shells are being used as nuclei for pearl production.

     The large gem quality of pearls has exquisite luster and beauty, and is readily available for jewellary purpose.

     The tiny immature pearls are often ground to a powder and mixed with cream.

     This is taken early in the morning to prevent heart trouble, to strengthen the bones and the teeth and for improved eye-sight, the protection against small pox.

Contribution towards the Economy

Pearl oyster farming is picking up worldwide. It is an important foreign exchange earner for developing countries, with promising markets in Europe and North America, where there is a great demand for cultured pearls which are cheaper than the wild pearls.

Bangladesh is traditionally a land of rivers, canals, lakes, coastal and marine saline water. It is grafted with resources of pearl production which is unknown to many of our own countryman. The climate, chemical composition of soil, physical features of water and temperature are favorable to the growth of pearl producing mussels as well as pearl production.

Cultured pearl industry can contribute towards the economy through-

      Bangladesh can earn tk.1500 crores annually by exporting pearls as well as possibilities of 20-30 lakhs employment generation in the country.

      Create foreign investment opportunities in this sector.

      Increase the GDP.

      Increase the standard of living.

      Urbanization in rural area.

Recommendations

Suggestion for development of pearl industry

The first requisite for the all-round development of oyster pearl industry and mussel culture especially for export purpose is to educate and training of those who are and may be willing to enter into the business.

Specially most of the shell collector are illiterate and live from hand to mouth, although they are the first finder to let these gems see the light of the world. If the awareness training of the scientific method of cultivation and conservation of Pearl bearing oyster and mussel is made known to them, then the conservation of muscle oyster beds will not disturb. They will stop indiscriminate picking of mussels. In natural condition out of 500 mussels they got only single tiny pearl. So we can imagine what a huge amount of pearl oyster destroy everyday by indiscriminate picking of mussel.

Artificial cultivation of pearl in scientific method should be given attention. Some of the problem and solving procedure of pearl culture are given below:

Problems:

In our country culture technique for artificial propagation of pearl bearing mussel and oyster are not properly implemented due to following reasons:

  Lack of skill scientific manpower

  Lack of technology for culture technique for artificial propagation of pearl bearing mussel and oyster.

  Training on project implementation and facilitates and culture technique of pearl is lacking.

  Knowledge on pearl culture management technique.

  There is no ‘Lagoon’ in costal area in our country. For marine pearl bearing species of oyster and mussel culture technique is more suitable in this ‘Lagoon’ area.

  For pearl cultivation by artificial propagation technique, it takes 3-5 years time, so the fish firmer discourage pearl culture activities in his fish farm.

  Lack of publicity in different communication med a like TV, Radio etc.

  Pearl Research Centre under Bangladesh Fisheries Research Institute not yet been established.

Action needed:

Pearl Research Centre under Bangladesh Fisheries Research Institute should be established in Moulvi Bazar or Sunamganj District. It is suggested that three potential and deep haors namely Tingua, Matin and Hail in Sunamganj and Moulvi Bazar be taken for the purpose, as these are reputed for producing gem quality pearl of value. Moreover, these haors are honeycombed with fine inlet where warm streams from the Meghna sweep in, maintain a temperature favorable to the healthy growth of pearl mussel. Another good location for establishment of research center may be at Austogram of Kishorganj district.

It is understood that pearl cultivation need 3-5 years time and yet there is no matured technology for artificial propagation of pearl bearing mussel and oyster in Bangladesh. It is suggested that three member’s term of Scientists and Planner will visit pearl producing country e.s. India, Chaina, Japan. After experience gathered from these countries, they will submit a report on how we can develop the pearl industry in our country. On the basis of the report 2 middle level scientists will send for training on suitable pearl producing country in abroad.

In the mean time Bangladesh Fisheries Research Institute will implement a short term research project on fresh and Marine Pearl oyster culture project. Long term project will be implemented in the proposed pearl oyster bed area after developing artificial propagation of pearl culture technique. Monitoring of the programmed will be under supervision of ministry of Fisheries & Livestock and Bangladesh Agricultural Research Council.

Awareness to the common people on artificial pearl culture technique – a pamphlets in Bengali, elating to the scientific methods of collection and preservation of pearls, should be published by FRI, Department of Fisheries and BARC. This pamphlets should be distributed free of cost to the fish farmers as well as those interested in the business of pearls.

Pearl research centre should be well equipped with the most up to data laboratory which should include all necessary equipments facilitates. Pearl Research Centre should be under supervision of one middle level scientist with supporting technician and staffs. The scientist should be responsible for looking culture aspect, collection, preservation and other organizational work. In training cell an important areas may be opened to impact modern and scientific training in the method of collection and preservation of pearls to the interested person for pearl cultivation.

It is known that artificial propagation of pearl culture takes 3-5 years for getting gem quality of pearl. It is suggested that mixed culture with carp and mussel for pearl production will get more benefited by earning money.

Conservation of Mussel and Pearl Oyster:

  Firstly a survey should be undertaken by Department of Fisheries to identify natural habitat of pearl bearing oyster and mussel and its breeding ground.

 Bangladesh Fisheries Research Institute will conduct a basic research on identification of fresh, Marine and Brackish water pearl oyster and mussel species of Bangladesh.

  On the basis of the study conducted by Department of Fisheries and Bangladesh Fisheries Research Institute, govt. should imposed laws on the free and indiscriminate picking of pearl producing mussels from pearl beds and these pearl bearing areas be declared as restricted areas and any one violating these laws, should be liable to punishment.

  It is altering situation that the burnt oil and waster of the diesel engines thrown from motor launches moving day and night in most of the pearl bearing rivers and channels of the locality are simple fatal to young oysters, eggs and free floating spats . It is, therefore, time that appropriate steps are taken for banning indiscriminate throwing of such mussel-killing oil by motor launches.

  Mussel and pearl bearing oyster should be picking up from their beds only in specific time and mussel should be matured and healthy for nucleus implementation.

Pearl bearing mussels and oysters:

Applied research on pearl bearing oyster and mussel includes the biology and ecology, culture technology, pollution and diseases, post harvest handling and the economics of its culture should be undertaken.

Biology and Ecology:

With available island and costal waters becoming scarce for oyster and mussel culture, more information is needed on the growth potential pearl bearing mussel and oyster in different ecosystem as the food plain, beels and open sea. For comparative purpose and to allow more reliable estimates of possible production, the carrying capacity of given ecosystem should be assessed and classified. The relative case with which mussels and oyster can be transplanted has raised questions on the ecological consequences of such actions, especially when used to introduce exotic species to a new area. Besides the potential danger of also importing diseases so far unknown in the area, the remarkable adaptability of exotic species to different environments could easily lead to undesirable changes in the ecological equipment.

Mussel and oyster culture technology:

In the tropical country mussel production still uses the bamboo and stake methods. The large number of mussel and oyster culture experiments involving rafts, however, strongly indicates that mussel and oyster culture in the future will relay on some sort of rope culture system. Research should concentrate on the development of low cost, simple farming methods that are appropriate to the educational and economical background of the target population. Studies are needed on the feasibility of extending mussel and oyster farming into more exposed waters in the open sea or inland flood plain / beel / lakes, with emphasis on the use of partly submerged system. Hatchery technology may not be an economically viable alternative in the near future, so method of obtaining seed from the wild will have to be improved. This includes development of spat fall forecasting technique through plankton sampling or monitoring of the gonad condition of mussels and oysters. Another means of increasing seed supply for farming is by transfer of spat over long distance. This technique, however, still needs improvement at least in those areas where deficiencies in the road network and other structural constraints often cause long delays in transportation. Studies could be undertaken to determine optimum conditions during transport to maximize overall morality.

Pollution problem and Diseases:  

More studies required for industrial pollution and the occurrence of din flagellates can be set up. This research should also help to assess the reliability of mussel species as a bio-indicator organism for heavy metal pollution. So far few works have been done on the development of cost-effective depuration techniques for mussels and oysters. Chlorination, ozonation and ultra violate light treatment are viable alternative, but more information is needed on the long term effects of such system.

Post harvest handling technique:       

The development of intensive processing industry is a necessary prerequisite for the large scale production of mussels and oysters. Consumer’s preferences for different product forms have to be investigated and simple techniques should be development for processing at ehe village firm level without compromising sanitation standards.

Economics:   

There is strong need for detailed economic studies on the various farming systems in areas of existing or potential culture. Alternative production techniques should be assessed in terms if capital requirement, labors demand and engineering design and in compression with other possible forms of resource use. Through the labor intensive technique probably have better change of being economically viable in most tropical countries, the feasibility of capital intensive, export oriented mussel and oyster culture as well as pearl export should not be disregarded. Studies should be conduct to determine what level of mussel production can be absorbed by local markets especially in South East Asia and also tribal people of Bangladesh. Projection should also be made on the potential growth in both local and export markets for mussel and oyster production, so that planning design and mussel and oyster production can be synchronized with the development of market for the resulting products.

Policy implication:

In the right of socio-economic constraints that tend to obstruct the large-scale implementation of pearl bearing mussel and oyster culture, government must seek ways to improve the institutional framework under which mussel and oyster culture is to be developed specially for export purpose. There is an immediate need of perspective planning and formulation of development priorities in inland, marine and brackish water pearl and mussel culture management. This should take into consideration all potential form of utilization of water resources. Forming of pearl bearing mussel and oyster require a reliable system leasing public water areas to individuals with protection against encroachment. Government should initiate programs that attract interest and investment of individuals and the industry. Authorities concerned have to initiate well-organized nutrition programs to increase consumer awareness and teach correct handling of the mussels and oysters. Regulations have to be set up enforced that ensure a continuous high quality standard of the mussel and oyster products. This will in the long term benefit both the consumer and the mussel farmer.

Pearl World Ltd

Related Organizational Behavior Paper: