Abstract – Chitin production was simulated using the process by fermenting shrimp heads and shells with Lactobacillus plantarum 541 in a drum reactor with an internal volume of 3 dm. The crude chitin yield from heads and shells used for this study was 4.5 and 13% respectively, comparable to the values obtained by the chemical method. For shrimp heads 83% deproteination and 88% demineralisation and for shrimp shells 66% deproteination and 63% demineralisation as reported in the earlier studies ere used . The liquor obtained in both cases was of good sensory quality with a high content of essential amino acids and therefore with potential to produce protein powder for human consumption. The crude chitin was refined and converted to chitosan using 12.5 M NaOH. The chitosan obtained had a residual ash and protein content below 1%, a solubility of more than 98%, a viscosity in the range 50-400 cP and a degree of deacetylation of 81-84%. The chitosan obtained through fermentation was similar to that obtained by the chemical method as reported in previous study. The economic process to produce Chitin and chitosan with various grades of purity to make immobilized microcapsules and biofilm to preserve fruits was studied and consistency depending on the requirements for a particular type of application. Several techno economical parameters of the new process, project investments and costs using green technology methods were realized using process simulators.