About the Project Report
This project report is about the cultivation of “Dragon Fruit”.
In this report we have shown the Dragon Fruit business in our country, the process of cultivation, advantages, problems and the huge opportunity of doing this business.
1. To find out the possibility of starting the business in the country.
2. A brief view on the important elements needed for Dragon Fruit business.
3. Knowing the aspect and potentiality of Dragon Fruit in the country.
4. The effective and efficient measures to improve and make more scope of this business in Bangladesh.
The preparation of report regarding the feasibility study of Dragon Fruit Corporation involves the following steps:
· First step was to target the sector in which we should enter. After deciding the target project, we select the sectors, which we must analyze.
· Next, we started our work of collecting data regarding the price of machineries, raw material etc.
To prepare the report we have to collect the information from Secondary sources.
§ Web site
§ Reference books
§ Project reports
Analyze and research of all data is done on next stage to seek out the related information by using flowcharts and diagrams.
Finally, we prepare the feasibility study report by analyzing all information in some specific areas like management, technical, marketing and financial.
There is good scope of our business. Because our business product is the Dragon Fruit, which is new to the country. The followings are the scope of our business:
§ It is a new concept of business.
§ People like to have the taste of a new fruit.
§ There are very few competitors or suppliers of this fruit in the market.
§ This fruit has a great health benefit for the people
1.1. Background: What is Dragon Fruit?
Pitaya Fruit, Pitahaya Fruit or commonly known as the Dragon fruit is among the most nutritious and wonderful exotic fruits. It is a favorite to many, particularly people of Asian origin. It features a mouthwatering, light sweet taste, an intense shape and color, not forgetting its outstanding flowers. In addition to being tasty and refreshing, this beautiful fruit boasts of a lot of water and other vital minerals with varied nutritional ingredients.
Due to its vital nutrients, the Pitaya fruit is suitable for all diets as it supplements fiber, which is best for laxative and the liver. Similarly, people who have high blood pressure, diabetes and obesity have attested to the fruit’s goodness. Recent findings show that if an obese person eats a Pitahaya fruit on a regular basis, it naturally reduces the weight considerably, creating a well-balanced body without compromising on the individual’s health.
1.2. Why the Dragon Fruit?
Dragon fruit, a new type of fruit has now entered into city’s leading shopping malls. Dragon fruit (Hylocereousundatus) is a member of Cacti or Cactaceae family native to Central America, now grown in many parts of the world including Bangladesh. The fruit is tasty and has nutritious values. It contains a good amount of vitamin C, B, minerals such as Calcium, etc. Dragon fruit is a rich source of antioxidant, which prevents cancer. The fruit also helps in reducing blood cholesterol and blood sugar. Among many other qualities Dragon fruit helps in reducing body weight.
In fact, Prof. Dr. Abdur Rahim, Director, Germplasm Center, Bangladesh Agricultural University, Mymensingh had brought this fruit to Bangladesh and started researching on Dragon fruit in 2007 to examine up to what extent this fruit could be adapted under the soil and climatic condition of Bangladesh. In addition, he came out successful in growing Dragon fruit in Bangladesh. Now that two types of Dragon fruit, red and white received certification from the relevant government department.
In addition, to expand cultivation of Dragon fruits, the Department of Agricultural Extension (DAE) may undertake a project to popularize Dragon fruits and to keep on surveying the market of this new fruits so that farmers may not sustain loss after cultivating Dragon fruits on their lands.
· Helps to lower blood glucose levels in diabetes
· Prevents formation of cancer causing free radicals
· Helps improve appetite
· Enhance the body metabolism because of its protein content
· Helps improve digestion and reduce fat.
· Totally agriculture based product
· No use of toxic chemical elements
· Contribution in increase the level of oxygen
· No bio hazardous wastes
1.3. Company’s Vision:
A Vision Statement is sometimes called a picture of a company in the future but it is so much more than that. The vision statement is like inspiration, the framework for all the strategic planning.
A vision statement may apply to an entire company or to a single division of that company. Whether for all or part of an organization, the vision statement answers the question, “Where do we want to go?”
What we are doing when creating a vision statement is articulating dreams and hopes for business. It reminds us of what we are trying to build.
Our business- “Paramount Fruits Ltd.’s” vision is to make people healthy by making the habit of eating fruit every day.
1.3. Company’s Mission:
A Mission Statement is a brief description of a company’s fundamental purpose. A mission statement answers the question, “Why do we exist?”
The mission statement articulates the company’s purpose both for those in the organization and for the public.
Our company- “Paramount Corporation’s” mission is-
· To meet the demand efficiently for our product
· To keep the lower than others
· To acquire customer loyalty
· To be the leader in fruit supply to the market
1.2. Uniqueness of the Product:
Dragon Fruitis good food for health benefit. It helps to lower blood glucose levels in diabetes. It prevents formation of cancer causing free radicals. In addition, helps moisturize and smoothen skin and decrease bad cholesterol level. Dragon fruit helps improve appetite. It can enhance the body metabolism because of its protein content. Dragon fruit helps improve digestion and reduce fat. It helps maintain the health of the eyes. In addition, helps strengthen the bones and teeth. Helps in tissue development. It promotes healing of cuts and bruises.
2.1. Promoters and their qualifications:
Our business promoters and their qualifications are as follows:
|Name||Age||Educational Qualification||Educational Institutions|
|Md. Ashiqur Rahman||28||BBA, MBA||University of Dhaka|
|Anika Islam||26||BBA, MBA||BRACK University|
|Zahidur Rahman||28||BBA, MBA||University of Dhaka|
|Kh. FiroozeNawer||27||BBA, MBA||North South University|
2.2. Share Holding of the Owners:
|Md. Ashiqur Rahman||25%|
2.3. Legal form of business:
“Paramount Fruits Ltd.’s” is a partnership business and it was established in 2010. Registration of partnership business is not mandatory. Therefore, we are not registered.
2.4. Organizational Structure:
2.5. Consultant and advisor:
Mr. Abdur Rahman is the Consultant as well as advisor of the firm. He has long experience on working in agricultural sector. He has done so many courses based on agriculture of the country.
Our Green Bio-Diesel Corporation is a partnership business. Here all the partners are having the equal distribution in the capital that is all the partners are providing the capital equally in the business. In addition, the total capital invested is enough for our business. Therefore, there is no need to go for issuing share in the outside market. For that reason, external auditor is not required for auditing and internal auditor is enough for our business.
2.7. Human Resource Management:
|Category||Staffing Need||Monthly Salary per person (tk.)||Annual Salary (tk.)|
Paramount FruitsLtd., is a Dragon fruit cultivator of Bangladesh. We focus upon the promotion of one nutritious fruit that provides health benefit and holds a particular promise for improving local economies and environments. Dragon fruit plant is a night flowering vine-like cactus. The beautiful yellowish flower is about 1 foot long and 9 inches wide, bell-shaped and very fragrant; they open during the early evening and wilt by daybreak. The fruit is oblong and has a unique appearance because of its bright pink to red, green-tipped overlapping scales rind. The edible portion is white or red, with hundreds of tiny black seeds. Its taste is sweet and juicy similar to that of pears, kiwis and watermelons. Dragon fruit is now grown commercially in Asia in places like Philippines, Thailand, and Vietnam and most recently in Bangladesh.
3.2. Cultivation Technology:
Dragon fruit is an agriculture-based product. The cultivation technology is as almost same like we use in cultivating other domestic crops. There is not much difference, just that Dragon Fruits are from the cactus family, and they need a lot of water to be given to them for proper growth. Obviously, there are other differences but they are all very minor. Our product, Dragon fruits are from the cactus family, they need more water than our domestic crops. Therefore, our first concern is water. Than we need to apply some bio-fertilizers, like- smashed cow-bones, shattered wood coal, and mainly the chicken residue. Every month the fertilizers are needed to apply with much water. We also need to apply pesticides in order to kill the insecticides that are harmful for the plants.
The followings are the growing conditions-
Frost Tolerance: Hardy to 30°F and lower if well watered the day before.
Optimum Temperatures: 65°F—77°F.
Heat Tolerance: Prolonged temperatures above 90°F can cause sunburn and above 100°F can kill the plant, unless shaded.
Sun Exposure: Full sun; if sunburn occurs, then provide 15% – 30% shade.
Watering Needs: Drought tolerant. Commence watering in mid-April or after winter rains are over and soil is dry, then once or twice per week with drip irrigation, enough to thoroughly moisten but not waterlog the soil around the roots.
Growth Habits: Sprawling, tree-like cactus up to 30 feet tall with branches up to 10 feet long, each with 2-4 ribs; areoles along each rib are 0.8 to 1.2 inches apart, each with 1 to 3 reddish, 0.1 to 0.5 inch long spines.
Blooming Habits: Huge (up to 12” across) snow-white nocturnal flowers.
have yellow or pink outside petals and copious amounts of yellow pollen in the center, and open just one night, closing around noon the following day.
Fruit: The fruit is nearly round to eggshaped,2 to 6 inches in diameter, weighing from oz. to 4 lbs., with a thick skin commonly pink to deep magenta or red and with protruding scales of varying red, pink or green color. The edible pulp has a crisp texture reminiscent of kiwifruit, while possessing a distinctly different sweet and sometimes lemony flavor.
In our cultivation process there are some equipment that will be used. Like we need a tractor to plow the land, we need spades, we need a motor to supply water to the land, and some other common tools that are used in domestic cultivation process.
3.4. Project Layout:
Fig: Project layout
3.5. Information and communication technology
We will use both electronic and print media for advertisement and to communication with the people as well as with the customer. We will have our own website and e-mail address. Our website address is www.paramount-fruits.com.bd.
Beside these use will have a hotline number, a tax number and cell phone number. By these customers can communicate with us.
3.6. Research and development
In our project, we have a laboratory for research and development. Our agricultural specialistwill always try to improve our product.
· Research about different types fruit flavors.
· Research how to grow plants more quickly and effectively.
· Also research how to minimize the production cost.
3.7. Product and Services
Our product is mainly the dragon fruit. But there are many ways to consume it. They are as follows:
§ Dragon Fruit Salsa
This sweet and sour salsa is the perfect toppingfor B-B-Q salmon, chicken or pork chops. Or serve it like any salsa as a dip with tortilla chips.
· 1 large white-fleshed dragon fruit, peeled and
· cut into 1” cubes
· 1 large avocado, cut into ½” cubes
· 2 medium tomatoes, diced
· ½ cup diced sweet onion
· 2 Tablespoons chopped garlic
· ¼ cup lemon juice
· Salt and red pepper flakes to taste
· Gently fold all ingredients together and chill tomeld the flavors. Serve cold.
§ Dragon Fruit Pizza Recipe
· 1 package of ready to use pre-made sugar cookie dough
· 8 ounces cream cheese
· ½ cup powdered sugar
· 1 tablespoon lemon juice
· 3 dragon fruit, peeled and sliced
· 3 kiwi, peeled and sliced
· 1 cup strawberries, hulled and cut in half
· ¼ cup apricot glaze
Prep Time: 10 minutes
Cook Time: 10 minutes
Serving Description: 1 pie slice
· Roll out cookie dough into a 12 inch round.
· Bake 10-12 minutes or until lightly browned.
· Allow to cool completely.
· Meanwhile, prepare fruit by washing andslicing it into 1/4 inch slices.
· Cream together the cream cheese, powderedsugar and lemon juice.
· When the crust is cool, top with the creamcheese mixture.
· Lay fruit in a circle on top of the cream cheesemixture.
· Spread apricot glaze over fruit.
· Chill until ready to serve.
*Any combination of fruit can be used for this recipe.
§ Shrimp, Avocado and Dragon Fruit Salad
· ½ lb medium shrimp, cooked, peeled, deveined & cut into bite size pieces
· 1 tablespoon olive oil
· 1 teaspoon minced garlic1 large, ripe avocado, peeled & diced to 1/2″ cubes ½ head lettuce (butter or red leaf lettuce) ½ lime juice 1 large dragon fruit, peeled and cut into 1″ cubes.
Combine olive oil, lime juice, garlic and shrimp in a bowl; toss to coat shrimp.Arrange lettuce leaves in 4 salad bowls. Divide ½ of the avocado cubes among the 4 bowls. Add equal portions of the marinated shrimp followed by the rest of the avocado. Garnish each bowl with equal amounts of dragon fruit. Serve with crusty garlic bread.
§ Dragon Fruit Jam
· 2 envelopes unflavored gelatin
· 1 cup cold water
· 2 pints peeled, red Dragon fruit, cut into ½” pieces
· ½ cup sugar or to taste
· ¼ cup lemon juice
In a large saucepan, sprinkle the unflavored gelatin over cold water, let stand 1 min. Stir over low heat until gelatin is completely dissolved, about 5 min. Add dragon fruit pieces, sugar and lemon juice. Bring to a boil and simmer for 10 minutes, stirring occasionally and crushing the dragon fruit pieces slightly. Spoon into jars; cool slightly before refrigerating. Chill until set, about 3 hours. Store up to 4 weeks in refrigerator or to up to 1 year in freezer. Makes 4 cups jam.
Services or Health Benefits of Dragon Fruit::
- As dragon fruit is a good source of antioxidants, it prevents free radicals and protects from causing cancer and other health detriments from entering your body.
- This fruit helps in neutralizing the toxic substances such as heavy metals. Besides, high blood pressure and cholesterol levels can be reduced by consuming dragon fruit.
- Regular consumption of this aids in fighting against cough and asthma.
- This has high amounts of vitamin C and helps in healing bruises and cuts quickly and enhancing the immune system.
- Vitamin B2 present in dragon fruit acts like a multivitamin and helps to improve and recover the loss of appetite.
- Vitamin B1 in this fruit helps in increasing the energy production and also in metabolizing carbohydrates.
- Due to the presence of vitamin B3, it helps in lowering bad cholesterol levels. It improves the appearance of your skin by smoothing and moisturizing it.
- It improves eyesight and avoids hypertension.
- As it is a good source of phosphorus and calcium, it reinforces bones, helps in tissue formation and forms healthy teeth.
- Regular consumption of dragon fruit decreases weight, thereby creates a well-balanced body.
- Dragon fruit is also helpful in reducing blood sugar levels in people suffering from type 2 diabetes.
3.8. Project Location
Our project is located in near to Dhaka. It’s in Savar, Thana-Ashulia, Union- Shimulia, and Village- Marichkata. The total area of our project is about 10 acres.
3.9. Supplies and sources of Raw materials
As we need to use the dragon fruit seed as our raw material. We will collect our seeds from Dept. of Horticulture, Bangladesh Agricultural University Germplasm Centre (BAU germplasmcentre), Mymensingh. As they are researching and developing the dragon fruit seeds and also sell them to those interested in culvation of Dragon fruit.
3.10. Structure and civil work
The building structure and civil construction works of our project consists of anwarehouse for raw material, an office building and a tractor shade. Some other essential works such as water supply system, underground water reservoir, reserve tank, drainage wall and gate are also to be constructed for the project.
4.1. Current Scenario of Bangladesh
Bangladesh is a developing country. Here most of the people doesn’t have enough ability bye expensive fruits for them. At present the dragon fruit is sold 500/600 tk. Per kg, because the fruits are imported. But as we will grow it in our country, we can sell it in a much lower price than the existing price. As it is the first time we are going to produce this fruit, gradually the price will be more decreased in order to reach in every class of customers.
4.2. Situation Analysis
4.2.1. Market summary:
Present situation of Dragon fruit in the market is not good. The high price of this fruit is a big obstacle in reaching all classes of consumers. Only the high class consumers can have it. So we have a plan to provide this fruit all over the country with a target to capture middle to upper class people at the primary level. Present situation is perfect for this business. Dragon fruit cultivation is quite a new idea for our country so we will introduce it to the general people of Bangladesh.
4.2.2. SWOT analysis:
The SWOT analysis shows the Strength, Weakness, Opportunity and Threats of a business. They are as follows:
· A new idea of business in Bangladesh.
· At present there only 1 or 2 competitors. So, inception of this business can be prospective. The business model is Cultivation.
· This will not only utilize the wastelands but also avail cheap labor source.
· Lower dependence on supplier of raw materials.
· The cultivation process of Dragon fruits so simple and our environment is good for it.
· In the other countries it takes 2 to 3 years to give fruits, but in our country it takes only 6 to 12 months to give fruits.
· Lack of awareness about the health benefits of dragon fruit.
· Cannot reach all classes of consumers primarily.
· Product availability is so not up to the mark compare to the actual demand.
· There is a huge opportunity for our product to take place in the market.
· There is only one or two competitors.
· Reduced amount of price is attractive to the consumers.
· There is a huge health benefit which can be a great positive point.
· More competitors are coming.
· Comparatively high price can be a threat to it.
· Lack of proper marketing channel.
4.2.3. Competitor analysis:
At present there are very few competitors in this sector. The demand of this product is increasing day by day. But supply is not increasing. So it’s a big opportunity to enter into the market. But according to Michael E. Porter’s five forces model, there can be threats of-
Our company is completely new so we need time to reach the level from where we can compete our competitor.
4.3. STP Analysis
4.3.1. Market Segmentation:
· High class segment: This segment deals with demand for high class people of the society living in the residential areas of the capital city.
· Middle class segment: This segment deals with the middle class buyers and it will be rest of the city.
· Others: This segment deals with the other side of demand for dragon fruit.
Under these two broad segments of customers we expect to render the following services:
· Meet up the local demand of our business place which includes both transportation and agricultural purposes.
· Expect to offer the regulated price set to provide customers with competitive price for their products and their switching cost can’t be high.
4.3.2. Target Market:
We have targeted our market on the Geographic basis. Under this basis we are now mainly targeting the customers of the capital city. As there are many super shops here. Such as the- Agora, Mina Bazar, Swapno, SSMart, PQS etc. At the preliminary stage we will supply our product to those super shops and gradually we will capture the local market.
4.3.3. Market positioning:
We promise our customer that we give our first priority to maintain product quality which is differentiable from other existing product sacrificing a little cost comparable to others. Maintaining quality and its value we will be able to maintain a faithful relationship with our customer.
4.3.4. Marketing Mix analysis:
Uniqueness:- We will Dragon fruit naturally. It is totally an eco-friendly product having no bad affect.
Benefit:-The health benefits of Dragon fruit are as follows:
· Dragon fruit boosts immune system. Dragon fruit is rich in vitamin C and fibers that help provide an overall healthy body.
· Dragon fruit helps in digestion. Because of the richness in fibers, Dragon fruit aids in the digestion of food, Studies also suggest that Dragon fruit promotes the growth of probiotics.
· Dragon fruit help to lower blood glucose levels in type 2 diabetes. Studies also suggest that the glucose found in Dragon fruit aids in controlling the blood sugar level for diabetes patients.
· Dragon fruit prevent formation of cancer causing free radicals. Dragon fruit is rich in minerals and fibers that aids in digestion, cleans toxic ingredients thus preventing the occurrence of colon cancer.
· Dragon fruit as anti-oxidant. The presence of high level of vitamin C, minerals and pytoalbumin is regarded as relevant in fighting free radicals and possess anti-oxidant properties.
· Dragon fruit helps to control cholesterol level. Dragon fruit is also rich in flavonoids that are known to have favorable effects against cardio related disease.
Features:-As we are producing it domestically, there will be the following features:
· It will totally be produced through domestic technology.
· There will be less price than the existing price.
· It is delicious and health beneficiary fruit.
· We set our price in order to penetrate market quickly and deeply to attract large number of buyers quickly and win a large market share.
· Price = 350 Tk. per kg.
· We are going to use Market penetration pricing here. Market penetration pricing means setting a low price in order to attract a large number of buyers and a large market share.
For several reason we take this policies which are:-
· As this is a totally new concept, and we are new in this business.
· The market is highly price sensitive so low price produce more market growth.
· Here production and distribution cost fall as sales volume increased.
· There isn’t much competitors so low price help keep out the competitors
Place ( type of distribution channel):-
· We use level-1 channel, there is no intermediary level except the retailer. We will sell to the retailer super shops. We also sell t directly from our project location.
Since we are using direct marketing so the advertisement is given in the following way:-
· Seminar: To make people aware, especially our target market, we will arrange a seminar where we will at first introduce our product and let everybody know in front of the press about its features and benefits. This is going to help us to make an impact about the product.
· Billboard: after people gets to know about our product, to help them remember the product, we are going to use the advantages of billboard advertising. We are going to have our product advertised on the big billboards which is going to help us to attract many potential customers of ours.
· Public Relation: we are going to introduce our product through the arrangement of a seminar where we are also going to call people from the media to cover the news. A press can be a valuable way to make an immediate impact, through which the benefits of our product can be stretched and thus helping us to make an image.
· Transit Ads: one of the newest methods of attracting people about products and services is by using the moving vehicles that we see on the roads. Transits ads are done on the big moving vehicles that many people views on the roads on an everyday basis. We are going to apply the same technique for our product since it is very necessary to let everyone know about it. We are going to use the body of the local buses or private CNG buses for the advertisement stating to keep our country green and clean.
· Newspaper and Television: It is one of the strongest media of advertisement of our country.
· We are going to emphasize our promotional activities around our product’s unique selling proposition (USP).
5.1. Cost of the project
To establish a business how much money is required is called cost of project business.Paramount Fruits Ltd. is a newly established business. Total estimated cost of the project is 1,00,000.Different segment of cost is given below.
|Cost of the project|
5.2. Means of Finance
|Means of Financing||Taka|
|Total Capital Requirement||1,00,00,000|
|Long term loan||60,00,000|
|Equity supplied by the owners||40,00,000|
|Debt Equity Ratio||60:40|
5.3. Working capital requirement
|Particulars||Year 1(TK)||Year 2(TK)||Year 3(TK)|
|Raw materials (seeds)||3,00,000||3,32,500||3,40,000|
5.4. Cost of production
|Particulars||Year 1||Year 2||Year 3|
|Production per year||30,000||35,000||40,000|
|Per plant seed cost||10||9.5||8.5|
5.5. Projected Income Statement
The financial reports are prepared in a yearly basis. They are intended to be comparable with each other. The following is the Projected Income Statement of Paramount fruits ltd.
Projected Income Statement
|Particulars||Year 1(TK)||Year 2(TK)||Year 3(TK)|
|Direct Cost of Sales||11,94,000||12,08,000||12,34,500|
|Total Cost of Sales||11,94,000||12,08,000||12,34,500|
|Gross Margin %||57.36%||61.36%||65.70%|
|Sales and Marketing and Other Expenses||80,000||80,000||80,000|
|Income from operation(EBIT)||14,56,000||17,67,100||22,12,000|
|Interest Expenses (Long term)||(8,40,000)||(7,96,561)||(7,47,040)|
|Income before tax(EBT)||6,16,000||9,70,539||14,64,960|
|Tax paid (40%)||(2,46,400)||(3,88,216)||(5,85,984)|
5.5.1 Loan Repayment Schedule:
Long-term Loan= tk. 60,00,000. Interest Rate= 14%. Time= 10years
|End of year||Beginning balance||Installment||Interest||Principal Payment||Ending balance|
5.6. Projected Balance Sheet
The following is the projected balance sheet of Paramount fruits ltd.
Projected Balance Sheet
|Particulars||Year 1||Year 2||Year 3|
|Total current assets||2,59,319||2,28,322||2,31,733|
|Total fixed assets||98,00,000||96,90,000||95,80,000|
|Liability and owners’ equity|
|Long term loan||60,00,000||56,89,719||53,35,998|
|Total long term liability||56,89,719||53,35,998||49,32,757|
|Total owners’ equity:||43,69,600||45,82,324||48,78,976|
|Total liability and owners’ equity||1,00,59,319||99,18,322||98,11,733|
5.7. Retained Earnings Statement
|Particulars||Year 1||Year 2||Year 3|
|Retain earning(beginning date)||60,00,000||56,89,719||53,35,998|
|Earnings after tax||3,69,600||5,82,324||8,78,976|
|Retain earning as on closing date||3,69,600||5,82,324||8,78,976|
5.8. Risk Analysis
We have some risk associated with the project. They are given below:
· We are mainly targeting the local customer, so we will have small market coverage.
· Price of our product is not high. So promotion of our product to the people will be easy.
· People of Bangladesh are ignorant about taking new product.
· People don’t know about the health benefits of Dragon fruit.
· People of Bangladesh do not know about the various ways of eating dragon fruit, so the demand is low.
· Local people are not aware of that product because it is a new product.
5.9. Social cost Benefit Analysis
|Particular||Year 1||Year 2||Year 3|
|Total cost of production||11,94,000||12,08,000||12,34,500|
|Direct Cost of Sales||11,94,000||12,08,000||12,34,500|
· It is estimated that after we supply our fruit to the market, as it is sold tk. 500 per kg. We going to charge tk.350 per kg. so that more people can have it.
· As we charge less price than others, so it is possible that people will consume it more.
· Increased of consumer satisfaction- As there are health benefits of this fruit, people must have a good return by consumin