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Hyderabad, India-based Avanti Feeds – one of the top shrimp feed producers in India, reported lower sales volumes and revenue for FY 2022-2023 as the shrimp aquaculture industry in the country slows – but the company managed to weather the downturn well.
The company posted total revenue of INR 40.41 billion (USD 492 million, EUR 442 million), a slight decrease from the INR 40.47 billion (USD 493 million, EUR 443 million) posted in the 2021-2022 fiscal year. The decline was partially attributable, the company said in its annual report, to an 8 percent decline in shrimp feed sales volume compared to the prior year, to 498,000 metric tons (MT) compared to 540,000 MT in 2021-2022.
The drop in revenue and sales volume is another sign of an ongoing “market correction” in the Indian shrimp industry. From April 2022 to March 2023, India exported 719,357 MT of shrimp, down from 734,375 MT the previous year – and its shipments to the U.S. tumbled in that same time.
Avanti Chairman and Managing Director Alluri Indra Kumar, in a statement to company shareholders, said there were numerous challenges for the company, including the global recession, high inflation, and covid-related difficulties in China. The company also said the company saw volatile farm gate prices of shrimp throughout the year.
Despite the drop in volume and revenue and the multiple challenges, Avanti managed to post a net profit after tax of INR 2.3 billion (USD 28 million, EUR 25 million) for the year, up from INR 2 billion (USD 24 million, EUR 21 million) the prior year.
Kumar attributed that growth to “the dedicated and unwavering efforts of our employees, supported by our value chain partners, and the efficient operations of our supply chain from farm to export markets.”
“I am proud to report that we navigated through these dynamic situations and achieved a commendable financial performance, remaining nearly on par with FY22 in most aspects,” he said.
The company’s performance for the year was also punctuated by multiple acquisitions, including an acquisition of Srivathsa Power Projects, a natural gas-based power plant in the state of Andhra Pradesh, and the commencement of commercial operations at its feed unit in Andhra Pradesh.
The company said that looking forward, the demand outlook for shrimp is “improving” as favorable farm gate prices are coupled with conducive conditions for shrimp cultivation.
“Looking ahead, the future holds immense potential for Avanti,” the company said. “With a sense of eager anticipation, we embrace the forthcoming opportunities to spearhead transformative growth, delivering exceptional value worldwide.”
Photo courtesy of Avanti Feeds
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