1. Business Proposal
DIAMOND AQUA LEADS
To develop and enhance the
Ornamental Fish Industry by culturing
the fresh-water fisheries and treating
all Fish Disease, and providing proper
Fish Food in order to gain/ enhance
the growth of the fish, and pigments.
Mrs. P. Nishanthi Senevirathne
No.15/1, Woodland Mawatha
Kohuwala – Nugegoda
+94 78 7370137 (mobile)
+94 78 5165676 (hot-line)
+94 71 1146461 (hot-line)
+94 11 2809646 (work/ fax)

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Table of Contents
1. Executive summary ................................... 04
1.1 Introduction ................................... 04
1.2 Enterprise Description ................................... 04
1.3 Mission / Success Vision ................................... 06
1.4 Critical Success Factors ................................... 06
2. Overview of the World Ornamental Fish Trade................................... 07
2.1 Market Analysis .................................. 07
2.2 Import and Export ................................... 08
2.3 Advantages/ Disadvantages of Breeding .................................. 08
2.4 Diseases ................................... 08
3 Business/ Enterprise Overview ................................... 09
3.1 Product Description ................................... 09
3.2 Business Planning and Marketing ................................... 09
3.3 Marketing Plan ................................... 10
3.4 Development Plan ................................... 10
4. Business Management ................................... 10
4.1 Short and Long-term Benefits Management ................................... 10
4.3 Community engagement ................................... 10
4.2 Risk management ................................... 11
4.4 Price Management along the Trade Chain ................................... 11
5. Financial Plan ................................... 11
5.1 Summary of Financial Projections ................................... 11
5.2 Assumptions and Financial Drivers ................................... 12
5.3 Funding and Funding Requirements ................................... 13
5.4 Security/ Collateral Offered ................................... 13
Objective of the Business Proposal ................................... 13
Costing and Pricing ................................... Annexure-I
Initial Start-up Costs ................................... Annexure-II
Average Sales Forecast ................................... Annexure-III
Cash-flow Statement ................................... Annexure-IV
Forecasted Working Capital Requirement ................................... Annexure-V
Capital Budgeting – Return Over Investment ................................... Annexure-VI

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1. Executive summary
1.1 Introduction
The fish-keeping hobby is believed to be started in China 1000 years ago where it
spreads’ to England in time due to rapid technological advances with the advent of air
transport popularised it. Aquarium fish keeping began in 1805 though, the first public
displayed aquarium opened at Robert’s Park in England in 1853. The world’s best
aquarium is in San Francisco where the aquaria are placed in 10 levels; one above other.
Tropical ornamental fish comprise a varied list of fishes, each with their own peculiar
requirements for commercial production, and market for these fishes are as varied as
the fish themselves. A considerable amount of prior knowledge is recommended to
anyone who wishes to enter the field since it is extremely difficult for new producers to
get faire information on how to produce tropical fish; many production techniques and
management skills required, the specific methods for production for given species are
closely guarded secrets.
However, ornamental fish keeping is becoming popular as and stress relieving hobby. In
general, about 7.2 million houses in USA and 3.2 million in European Union have
aquariums and this figure is increasing day by day throughout the world. The fact is that
USA, Europe and Japan are the largest market for ornamental fish but for more than
65% of the exports rooted from Asia. This is a encouraging news for developing
countries like us that more than 60% of the total world trade rely on it.
1.2 Enterprise Description
Diamond Aqua Leads (Ornamental Fish and related businesses) of Kohuwala, Nugegoda
is to start a green business based on the rich ornamental fish resources all around the
country and know-how to better benefit local fish collectors and small-median
companies who display ornamental fish tanks at their companies by providing cultured
Fishes, improved healthy Fish-food, unique/ special Fish-tanks with filters (hassle free),
consultations/ technical support, Imports & Exports.
This initiative evolved a long-term research by Mr. Dumil Peiris (my husband) who has
been studied fish ecology and socioeconomics of fishery for nearly two decades which
we felt that the moment is ready to use our knowledge and contacts with the outside
world to develop a venture business with fish-farmers and small traders, and small-
medium fish collectors, and to involve in export trade. The Diamond Aqua Leads is
aimed to put a fair trade system in place through remote of fish-farmers in Sri Lanka to
the demand of local and international fish collectors in view of getting foreign exchange
in to the country.

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In order to keep the fresh-water fishery viable amongst an increasing amount in remote
villages in Sri Lanka, fishes bred in captivity outside the region where they couldn’t find
a reasonable market for it, we have to find a solution for problems of fish-farmers.
Through this venture we can effectively advocate a socio-environmentally responsible
“green” ornamental fish industry.
Ornamental fishes are one of the few natural resources that can be extracted from the
country’s mud-ponds with no significant impact to its environment. Since the 1950s as
favourable local climate conditions, ample availability of perennial fresh water source
throughout the country, promotion of small scale ornamental fish breeding as the
livelihood of the household in the country and the ever growing global market for the
ornamental fish have been the driving forces to exist in this trade. Annually, 300 million
small tropical fishes are caught which can export to worldwide aquariums that could,
generate over 8 million USD revenue of foreign income. In reality, the revenue might be
up to 10 million USD high if the Government facilitated/ funded for this trade, since the
world trade of ornamental fishes has reached more than 500 million USD, and is
growing at around 10% per year.
The traditional trade system has experienced no significant change since the rubber
boom in the 19th century. However, in recent years, village folks have started to
question whether they receive a fair share of the fishery. They have taken the initiative
to organize a union and some sort of cooperative and demanding a fair trade system,
but they do not have the means to establish different trade processes.
We have been encouraged by fisheries board and international ornamental fish
organizations and traders to develop a fish trade catering to a specialty fish market. We
have already tested this niche market for two years, and can further develop it with an
organized CO-OP in the future as we still scratched the export market though. We are
going to start by establishing small family production units (buy-back), providing
training on ornamental fish care and encouraging entrepreneurships which led to
ecotourism. This is especially important because the families involved will act as
environmental protection agents, as their income is directly linked to the preservation
and well-being as a proud Sri Lankans which favours the “Mahinda Chinthane”.
Directly buying the fishes from the villages does not impact the export price, but
relocates part of their gains along the trade chain back to them. Using the existing
system, the start-up cost will be low and potential benefit can be high. One step at a
time, they will learn trading skills and improve product quality, since our goal is to
include all villages in the region towards a sustainable trade practices.

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Diamond Aqua Leads also facilitates Testing and Disease control which could be dealt
with through our range of fish-medicines, Breeding, Nursering, Brooder management,
Grading and Selection facilities, Culturing and Export preparation, Cement Ponds/ Glass
Tanking and Mud ponds with the use of suitable technology together with research
findings and the best practices in the country. Further, our franchise farm networks will
others to supply variety of ornamental fish, aquatic plants and other aquarium products.
This analysis also develops criteria to assess whether development for ornamental
species should either be cautiously approached, or avoided all together, after all, our
aim is to enhance exports with well planned and perfectly scheduled production, as last
year or so we have studied the industry with several pilot projects in order to ensure its
competitiveness in line with several aspects. However, Diamond Aqua Leads should
focus to build the sustainable and greener Aquaculture Industry in Sri Lanka.
1.3 Mission / Success Vision
Our Mission is to establish a viable, fair and sustainable trade system that can replace
the century’s exploitation in the Country.
Our Success Vision is to help rural fishers to sell more fish and be fairly compensated for
it. In partnership with fishers´ and participating traders, we are building a niche market
for ornamental fishes based on innovative technologies and a socio-environmentally
responsible fishery. Diamond Aqua Leads is aimed to build a fair trade system through
the partnership of fish collectors, traders and public institutes to offer specialty fishes to
add market value of ornamental fishes by providing proper fish-food and reliable
fish-medicine.
1.4 Critical Success Factors
This Project has already made thorough studies on ecological and economical aspects of
the ornamental fishery and start export since 2007. Rural areas have immigrated to the
urban centre often moved to the municipal town, in order to obtain better education for
their children and health care for elders. This is mainly due to the fact that ornamental
trade and tranships point. Maintaining a viable ornamental fish industry in the region is
a small investment to preserve social and environmental integrity.
Since, the Diamond Aqua Leads still holds the monopoly market over Fish-food and
Fish-medicines through Sri Lanka’s leading supermarket chains like Cargill’s, Keell’s and
Arpico, only the awareness/ marketing programme to be carried-out.

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Guppy
2. Overview of the World Ornamental Fish Trade
2.1 Market Analysis
The global trade in the ornamental fish that people like to see, floating around glass
tanks in homes, officers, hotels and public places.
The global trade in ornamental fish is estimated to be USD.300 millions, while Singapore
and other South East Asian countries accounted for 80% of the global trade. Sri Lanka
figures in the fringes with USD.10 millions, core exports.
The main markets are USA, UK, Belgium, Italy, Japan, China, Australia and South Africa;
with its tropical climate, Sri Lanka can become a key-player. However, Sri Lanka is
waking-up to yet another business opportunity – aquariums as Sri Lanka is among the
major suppliers of marine varieties; other countries are Philippine, Singapore,
Indonesia, Caribbean, Kenya and Mauritius.
There are more than 100 regularly exploited species for the
export market, one verity, Cardinal Tetras (Paracheirodon
Axelorodi), and other one is Guppy fish (Poecilia Libestes
Reticulata) which are absorbed over 80% of the total fish export,
and also the harvest as well.
Out of which that the Guppy has been deliberately set free in
several Asian countries (including Sri Lanka) in an attempt to
combat Malaria, though they originates in South and Central
America.
These fishes have are easy to breed and they will often spawn without any extra
encouragement, and some have already replaced the fresh-water supplies in the market.
As in captivity bred they become an economically viable alternative, where other
fresh-water fishery may be threatened in the near future.
All the different fish species require different food types, and the feeding of fish and
their nutrition is one of the most important factors in keeping them healthy. Fish are
very diverse in their habits and in their eating patterns too. Some fish are bottom
feeders, while others feed mid-water, most of fish are strong surface feeders, and some
fish enjoy eating plants. Due to the lack of knowledge, most collectors used surface
fish-food and moreover, imports such fish-food (like pellets) though we manufactures
proper fish-foods, thus the market for the Fish-food is not in satisfactory level.
Cardinal Tetra

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Ornamental Fish-medicines are to cure diseases and infections like bacterial infections,
fungal infections, and external or internal parasites in fishes. Theses medicines are cure
external cotton wool, like growth on the surface of the fish and also to reduce the nitrite
toxicity in fish tanks, and cure skin haemorrhages, pop eye/ eye related infections,
Protrusion of scales etc. A Market for the ornamental Fish-medicines are in a better
level than the Fish-food for an expensive fish ranges, since the collectors who have
expensive fishes are well-informed.
2.2 Import and Export
The problem in exporting tropical fishes is air connectivity to the markets from the
breeding point. Other major issue is the licensing of brood stock imports, Liberal
imports will provide greater boost to the industry instead.
However, most of the foreign fish varieties are exports/ brought in to the world trade
from Sri Lanka.
2.3 Advantages/ Disadvantages of Breeding
The history of the fish breeding goes back as far as 1163 but in the year 1841, M. Ward,
a natural scientist, at the time introduced this ornamental fish keeping as a hobby, to the
common people through the construction of an aquarium with fish.
An ornamental fish production unit may be of three types; a breeding unit, rearing unit
and combined breeding & rearing unit. The profit depends on the carrying capacity,
specific species and infrastructure. Marginal farmers who breed or rear the fish have to
sell them earlier stages due to the lack of proper equipments and which is less
profitable, better-off farmers rear the fish to an optimum size and which is more
profitable though.
Advantages Disadvantages
 Less water requirements High initial investment
 Production throughout the year Complexity
 Ability use existing buildings Sub-lethal effects of ammonia carbon
 High yields per gallon of water Lack of successes needed for funds
 Improved feed conversion rates Inefficiencies in filtration
 More control over the business Expensive filtration

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2.4 Diseases
Except for species – specific viruses, all major diseases of food-fish aquaculture, occurs
in the ornamental fish industry plus a few unique to the tropics. Since, the ponds and
tanks in which ornamental fish are kept tend to be small, and of the large variety of fish
in any one facility, disease management takes a considerable amount of a manager’s
time.
The current benefit and risk analysis of the aquaculture industry focuses on the
fish-food production sector. Only a brief overview is given here since numerous review
articles have been written, and the benefits and risks are still being widely debated.
Benefits that are less discussed include, food conservation, and research into life history
characteristics particularly of the early stages. The risks of fish-food aquaculture include
nutrification value and the fish-foods which gains natural colourings of the fish where
water bodies, addition of anti-biotics and other chemicals to the ecosystem,
introduction of non-native disease, user conflicts.
3 Business/ Enterprise Overview
Name : Diamond Aqua Leads
Location : No.15/1, Woodland Avenue, Kohuwala – Nugegoda (Western Province)
The initiative applies to practice the bio-ecological and socioeconomic studies of the
Project started in 2007, and aims to develop a fair and greener trade for ornamental
fishery, which is deemed as an alternative means to export conservation.
3.1 Products Description
We provide cultured fresh-water ornamental fishes to the world market and develop
new technology to enhance fish quality. Those fishes are small with a short life span
(around 2 years). The fishing grounds cover less than 5% of the habitat, which means
that fishing can be done sustainably without affecting the ecosystem. Ornamental
fishery provides subsistence-level income to rural folks, and keeps them from engaging
continuously where they’ll receive fair amount of money.
We have all types of Fish-foods (locally made and imported) for bottom/ mid-water/
surface feeders which are nutritious and helps gain fishes’ colour.
Diamond Aqua Leeds provides comprehensive answers to all fish disease through range
of medicines through years of researches, only the awareness project to be carried-out.

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3.2 Business Planning and Marketing
We have made a successful pilot export venture business with several foreign fish
collectors, few international distributors (City Aquarium, Muiveyo, Eureka Aquarium at
Maldives/King Fish at Qatar), and further we have identified principal bottlenecks along
the trade chain. Diamond Aqua Leads will further develop the proven market with the
rural farmers and improve local collectors’ facilities to guarantee a steady supply and
good quality products.
Our marketing strategy is first aimed at meeting existing market demands and secondly
at supplying new varieties of fishes to the export market like to Maldives, Qatar. The
rural folks/ farmers will receive special workshops/ trainings and nursing of
ornamental fishes. We will purchase their fishes directly from the (leaving out the
intermediary), and then sell such to the local and international buyers/ collectors and
distributors
3.3 Marketing Plan
First to establish a couple of specialty fish trade module, which may include 5-7 Cardinal
Tetra families, one or two exporters and one importer. Trade unit can compete for
quality and novelty fish supply that would encourage entrepreneurship.
Our first target market is China and other Asian countries where we double the sales
and targets through our existing international partner and contacts.
3.4 Development Plan
The proposed trade model, from farmers and small collectors’ for the local and
international market has been already tested, getting them into the trade chain, and is
done by organizing members in small community based production units. These units
are then linked to the Diamond Aqua Leads.
Our strategy is to maintain the current price, but to substitute the intermediaries which
would result in them to receive substantial amount of money in their hands that would
encourage them to engage in the ornamental fish trade continuously and will encourage
entrepreneurship among local stake holders.

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4. Business Management
4.1 Short and Long-term Benefits Management
The short-term goals are to add new products (varieties of fishes), improve quality of
traditional products and maintain the export price stable. Through our partner traders,
some fish collectors will benefit immediately.
In the long-term, the Geographic Origin Indication is thought to generate additional
revenues, which will be reinvested in local social and environmental causes.
It is too early to specify the benefits management, but we will emphasize that our
partner traders must follow the socio-environmental responsibilities mandate through
a democratic process to benefit local communities.
4.2 Community engagement
We have long-term contact with rural communities, and co-management workshops
have been offered where the collectors have participated in a personal productivity
register. The Geographic origin indication will further require members to follow a
socio-environmentally responsible protocol for the ornamental fishery, and fair trade
chain will allow collectors to make business decisions.
4.3 Risk management
This project is aware of the major risks that are encountered by the enterprise and has
taken measures to mitigate these. Among the major risks of the enterprise are the high
mortality rate of live fish, the unstable supply of specialty fishes, and irregular
productions.
The Diamond Aqua Leeds can solve these problems by working with them developing
the skills to practice live fish management to improve fish health; we thus provide local
training on techniques/ packaging methods and how to choose sustainable and new
target species. To manage the uncontrollable risk of irregular production, we can
improve the living standards of the Fishermans and the small collectors by improving
their income.
4.4 Price Management along the Trade Chain
Fish Collectors like us receive USD.6.00 to USD.8.00 per thousand Tetras(half Guppy
prices), and from Exporter’s Representatives or Patron, who discount 20% fishes to
compensate mortality (Fish collectors actually receive USD 5.00 per thousand).

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To export we pay USD.13.00 to USD.15.00 net for a shipment (800-1,200 fishes), where
we sell at USD.50.00 to USD.70.00 per thousand to International customers, who also
pay the freight cost. Thus, we can make USD.30.00 to USD.50.00 per thousand Tetras.
Aquarium fish hobbyists pay USD.0.25 to USD.1.00 per Cardinal Tetra in Asia, USD.2.00
to USD.3.00 or more in North America and Europe.
5. Financial Plan
5.1 Summary of Financial Projections
As a small and medium start-up business, we project a 60% growth from 2013 to 2014,
based on our market experience in 2010 and 2012. We will train members of villages
and small collectors to use simple spreadsheet calculating, and then use accounting
software. From empirical experience, we have estimated that 50% successful sales
(living fish) can make some profit or break-even. Additional analysis needs to be carried
out.
5.2 Assumptions and Financial Drivers
In addition to real market experience since 2007, our projections are also based on over
decade of onsite experience and professional readiness of partners. A projected 60%
annual growth is explained by a steep learning curve of rural villages and small-medium
collectors/ suppliers.
Sri Lanka has been in the market since 1950s, the most popular/ viable fish now being
Cardinal Tetra. Europe, North America, Japan and other Asian countries are four major
markets; each market has a different and constantly shifting preference. We assume
that “green fish, nutritious Fish-food and Fish-medicine” trade will be of growing
importance globally. Our ad hoc test has shown that a Cardinal Tetra with five pennies
surcharge was preferred by 50% consumers in UK and among US hobbyists, still
Fish-food and Medicines imported to Sri Lanka though. Asian consumers usually prefer
cheaper popular fish, but are willing to pay high price for rare or “illegal” species.
First, we will introduce new varieties of under exploited fishes along with common
species with a Geographic Origin Indication to establish a functioning specialty market
with trade partners. The financial advantage is that the production cost is extremely
low and a good management can bring in good profits.

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The enterprise will need modest investment initially, it has potential to grow and
revolutionize the centuries old exploitation trade systems. The financial benefit is
there; local entrepreneurship needs a boost.
5.3 Funding and Funding Requirement
The start-up enterprise is an extension of ongoing Project, which has provided service
and fund to local partners.
 LKR.4.00 million, as a long-term loan with a grace period of 6-months (only to serve
interest during the grace period) repayable over 96 months, to purchase idyllic place
for the business where we are presently reside; No.15/1, Woodland Avenue,
Kohuwala – Nugegoda.
 Another, LKR.1.00 million to invest working capital for extra Tanks/ Brood stocks,
repayable over 60 months.
 LKR.2.00million. as a Permanent Overdraft since initial investment is minimal; our
priorities are to upgrade existing infrastructures of export market and support
initial costs.
5.4 Security Offered
Mortgage over land and 3-storied building at Woodland Avenue, Kohuwala – Nugegoda,
assessment No.15/1, land called Millagahawatta, in extent of A:0 R:0 P:7.3 depicted as
Lot No. 2B in Survey Plan No.3267 dated 25/05/2002 by D. U. J. Nanayakkara Ls. &
estimated Market Value will be approximately LKR.15.00 million.
Objective of the Business Proposal
The objective of this report is to explain in detail and introduction to the Ornamental
Fish Trade and to evaluate the project in 4 different aspects i.e. Technicality,
Marketability, Managerial and Financial feasibility of the project, which expands the
business locally & internationally by providing infrastructure facilities to the
Ornamental Fish Trade locally and to take initial preparations to enter the export
market which enhanced the job opportunities in the country.