Avanti Feeds Ltd

Avanti Feeds Ltd (AFL) has marked its presence in the field of aquaculture by engaging in manufacturing high-quality feed for shrimps, operating the Vannamei hatchery and processing and exporting shrimps. The company has a strong technical and marketing tie-up with the THAI UNION Group of Thailand to strengthen its capabilities in the field of aquaculture. The company started its commercial operations in 1993 and now stands as the leading manufacturer of Shrimp Feed. AFL has two subsidiaries (incorporated in India) named Avanti Frozen Foods Private Limited (AFFPL) and Svimsan Exports & Imports Private Limited (SEIPL). AFFPL is engaged in the business of exporting Shrimp. Avanti Feeds operates a 3.2 MW Wind Mill Project in Chitradurg, Karnataka State. The company also holds 49.99% of equity stake in Srivathsa Power Projects Pvt Ltd which operates a 17.2 MW gas-based independent power project. Avanti Feeds also holds 25.88% in equity stake in Patikari Power Private Limited which operates a 16 MW Hydel Power Project in Himachal Pradesh. Incorporated in January 06, 1993 as a private limited company, Avanti Feeds Ltd (AFL) was converted into a public limited company in Oct.'93 and the name of the company was changed to AFL. The company was promoted by A V Rao and others. AFL went public in May '94 to part-finance the project of setting up a 100% EOU to manufacture 10,000 tpa of shrimp feed at Kovvur (West Godavari Dist), Andhra Pradesh. AFL entered into a technical collaboration with one of the leading shrimp feed manufacturers, Pingtai Enterprises Co, Taiwan. The plant was set up to produce scientifically formulated and nutritionally balanced water-stable international-quality shrimp feed in India. The company imported one complete set of shrimp feed processing equipment from IDAH Machinery, Taipei, Japan. The project has been successfully implemented almost in time and commercial production commenced from Nov.'94. In 1998-99, it increased the installed capacity of feed plant to 20,000 MT and shrimp shell meal manufacturing unit and pre-processing unit at Eathakota, East Godavari Dist has also been completed. In 1999-2000, the backward integration projects of wheat flour plant and shrimp shell manufacturing plant have been successfully completed and started commercial production. The company had set up a Shrimp Feed Manufacturing Plant with a production capacity of 10,000 MT P.A and the commercial production started from mid of June 2001. Modernisation and Upgradation of Shrimp Processing was taken up at Ravulapalem. The company has entered into a technical and marketing collaboration agreement with M/s Thai Union Feed Mill Co. Limited,Thailand. The new 50,000 MT per annum shrimp manufacturing facility at the company's existing plant at Kovvur commenced production from March 2014. During the financial year ended 31 March 2014, Avanti Feeds crossed Rs.1000 crores turnover mark and closed the year with turnover of Rs. 1131.61 crores. During the year under review, the company's Shrimp Feed sales grew by 45%. The year 2013-14 ended with shrimp feed sales at 1,49,891 MT, an increase of 46,903 MT as compared to previous financial year. The shrimp processing and export division sales recorded export of 3,289 MT in 2013-14 as against 2,551 MT in the previous year, registering an increase of 29%.The four windmills of the company located in Karnataka State with a total capacity of 3.2 MW have generated 62.39 lac units as against 62.14 lac units generated during the previous year and power generated was sold to Karnataka Power Transmission Corporation Limited under PPA. In 2014-15, Avanti Feeds' Shrimp Feed sales grew by 56% in quantitative terms. The year 2014-15 ended with shrimp feed sales at 2,33,489 MT, an increase of 83,598 MT as compared to previous financial year. The shrimp processing and export division sales recorded export of 3,409 MT as against 3,289 MT in the previous year. During the year under review, US authorities started checking each container exported to their country for presence of antibiotic residues. Because of stringent checking there were inordinate delays in clearing of the goods with additional expenditure to the exporters. Due to this, the company could not show improvement in its operations in this division. The four wind mills of the company located in Karnataka State with a total capacity of 3.2 MW have generated 55.41 lakh units as against 62.39 lakh units in the previous year. The fall in generation was due to reduced wind velocity during the year. The power generated during the year was sold to Karnataka Power Transmission Corporation Limited under PPA. Avanti Feeds applied for listing of its equity shares with NSE, Mumbai and the NSE approved the listing and admitted dealings in equity shares of the company with effect from 15 April 2015. In 2015-16, Avanti Feeds' Shrimp Feed sales grew by 8% as compared to previous financial year in quantitative terms mainly because of the quality of feed and technical support extended by your company to the farmers. The year 2015-16 ended with shrimp feed sales at 2,52,590 MT, an increase of 19,101 MT as compared to the previous financial year. The shrimp processing and export division sales recorded export of 4,377 MT as against 3,409 MT in the previous year representing an increase of 22% in quantitative terms.In 2015-16, the four windmills of the company located in Karnataka State with a total capacity of 3.2 MW generated 49.94 lakh units as against 55.41 lakh units in the previous year. The power generated during the year was sold to Karnataka Power Transmission Corporation Limited under Power Purchase Agreement. During the year under review, the company sub-divided one equity share of Rs.10/- each into five equity shares of Rs.2/- each with the approval of the shareholders, with requisite majority by way of postal ballot, the results of which were declared on 26 October 2015. In September 2015, Avanti Feeds acquired land for the project to set up shrimp feed manufacturing plant with 1,25,000 MT per annum capacity at Village Bandapuram, West Godavari District in Andhara Pradesh. This location is 20 kms away from the company's existing shrimp feed manufacturing plants at Kovvur. The project work commenced in December 2015 after obtaining all the statutory approvals and is expected to be completed in July 2016 and commence trial production. During the year 2015-16, Avanti Feeds divested its Shrimp Processing & Export Division to its subsidiary Avanti Frozen Foods Private Limited (AFFPL) by way of slump sale, under Business Transfer Agreement. This was done in order to improve business efficacy and to build global brand image for Shrimp Processing Business. The effective date of transfer of the Shrimp Processing & Export Division to AFFPL was 1 November 2015. However, transfer of statutory licenses from AFL to AFFPL was received in June 2016 and transfer of name from USDOC was received on 22 November 2016. From 1 April 2016 to 30 June 2016 AFL operated the Processing & Export Business on behalf of AFFPL and from 1 July 2016 till 22 November 2016, AFFPL did the processing and AFL exported as a merchant exporter. With effect from 23 November 2016, AFFPL started carrying on operations in its own name.AFFPL took up implementation of a new state of art shrimp processing facility at Yerravaram in East Godavari District of Andhra Pradesh in December 2015. Avanti Feeds reported 3,41,660 MT sales of shrimp feed during 2016-17 as compared to 2,52,590 MT shrimp feed sales in the immediate preceding financial year 2015-16, an increase of 35% in volume. For the 5th consecutive year, the company posted higher growth than the industry. The shrimp processing and export sales during 2016-17 recorded export of 5155 MT as against 4377 MT in the previous year representing an increase of 18% in quantitative terms. In July 2016, Thai Union Group acquired 40% stake in Avanti Frozen Foods Private (AFFPL) to extend support in this business. Avanti Feeds' new feed plant at Bandapuram, West Godavari District, Andhra Pradesh with a capacity of 1,25,000 Mts per annum commenced production from August 2016. During the year under review, Avanti Frozen Foods Foods Pvt. Ltd. (AFFPL) issued 40,06,667 shares to Thai Union Group PCL (TUG) of Thailand. After allotment of shares to TUG, Avanti Feeds holds 60% of the equity in AFFPL and AFFPL is subsidiary of the company. In 2016-17, Avanti Feeds' four windmills located in Karnataka State with a total capacity of 3.2 MW generated 31.44 lakh units as against 49.94 lakh units in the previous year. The power generated during the year was sold to Karnataka Power Transmission Corporation Limited under Power Purchase Agreement. During the high wind season from May 2016 to October 2016 two of the four windmills did not operate due to technical fault and inordinate delay in rectifying the machines by O & M service provider. The company has renewed O & M Agreement with Wind World India Limited with the understanding that O & M charges will be released to them in installments upon satisfactory maintenance of the windmills. During FY'17, the Company commissioned Unit-IV shrimp feed manufacturing plant at Bandapuram with a capacity of 1,75,000 MTPA. The power generated from Four Windmills of the Company located in Karnataka was sold to Karnataka Power Transmission Corporation Limited under the Power Purchase Agreement. The company's subsidiary Avanti Frozen Foods Private Limited (AFFPL) completed the implementation of a 15,000 MTA capacity shrimp processing plant at Yerravaram in East Godavari District of Andhra Pradesh with a Capex of Rs. 12,159.38 Lakh and started operations from 31 August 2017. During the year 2017-18, the gas supply for Srivathsa Power Projects Pvt. Ltd. was drastically reduced by GAIL to 37,172 SCMD (standard cubic meters per day) as against the nominated quota of 65,000 SCMD. As a result, the power generation was limited to 549.26 Lakh units as against a capacity of 911.04 Lakh units. During the year 2017-18, the Company generated 52.80 lakhs saleable energy units for Patikari Power Private Limited. As on 31 March 2018, the Company extended a guarantee of Rs 11506 lakhs and made investments of Rs 11211.82 lakhs respectively. During the year 2017-18, the Company (i) sub-divided 1 equity share of Rs. 2/-each, into 2 equity shares of Rs. 1/- each, and (ii) issued Bonus equity shares in the ratio 1 new fully paid-up equity share of Rs. 1/- each for every 2 fully paid-up equity shares of Rs. 1/- each (i.e. Adjusted for Sub-Division of equity Shares), with the approval of the members, with requisite majority at the Extraordinary General Meeting held on 14 June 2018. The record date for (i) sub-division of one equity share of Rs. 2/- each into two equity shares of Rs. 1/- each and (ii) Bonus equity shares of Rs. 1/- each in the ratio of 1:2 was 27th June 2018. The Bonus equity shares were allotted on 30th June 2018. The Company obtained listing and trading approval from Bombay Stock Exchange and National Stock Exchange for the 4,54,15,210 Bonus equity shares of Rs. 1/- each on 5th July 2018.During the year 2018-19, the gas supplied for Srivathsa Power Projects Pvt. Ltd by GAIL was only 20,4222 SCMD (standard cubic meters per day) as against the nominated quota of 65,000 SCMD stated due to non-availability of APM-Gas. As a result, the power generation was limited to 308.20 lakhs units as against a capacity of 1100 lakhs units. During the year 2018-19, the Company generated 52.80 lakhs saleable energy units. During the year 2020-21, the Company started commercial production of its Hatchery division and expanded to 600 million. During the period 2022-23, new Feed Manufacturing plant having an additional capacity of 1,75,000 MT at Bandapuram, in Andhra Pradesh commenced commercial production effective from December 3, 2022. The 3.2 MW Wind Mill Project in Chitradurg, Karnataka State installed in the year 2005 became operational in 2023.