Srinivasa Farms gets Rs 130 cr equity from IFC, plans Rs 300 cr expansion

August 12, 2019

HYDERABAD: Poultry firm Srinivasa Farms, which has secured Rs 130 crore of equity commitment from the International Finance Corporation (IFC), said it has chalked out a Rs 300-crore expansion and diversification plan.

The Hyderabad-based company is the only Indian poultry firm to have obtained equity funding from IFC, which has invested in some 70 poultry ventures across the globe.

The privately held firm has already received the first tranche of Rs 65 crore from IFC and is now looking at shifting focus from the dominant soya and feed business towards eggs and chicken processing and retail outlets.

Managing director Suresh Rayudu Chitturi said the company is aiming to cross Rs 1,000 crore in sales by 2020-21, apart from securing market leadership in poultry breeding with layer chicks from Hy-Line International, the world leader in chicken layer genetics. Its revenue touched Rs 765 crore last fiscal.

According to Chitturi, after Srinivasa Farms teamed up with Hy-Line International two years ago, the company’s India market share in poultry breeding moved up to about 12% from 2%. “We expect our market share to surpass 50% over the next 5-6 years, thanks to fast-rising per capita consumptions across India in general and urban centres in particular.”

As a part of its diversification plan, Srinivasa Farms is setting up a mega food park in Prakasham district of Andhra Pradesh and looking at expanding the poultry breeding capacities spread across Andhra and Telangana. Chitturi said the company plans to double its poultry breeding capacity over the next couple of years from about 36,000 birds a day in Andhra and 18,000 birds a day near Hyderabad.

The company has embarked on setting up a modern chicken processing plant near Hyderabad to produce a variety of value-added chicken products for hotels and restaurants and the fast-food segment.

According to Chitturi, at a time when high global corn prices are pushing up poultry feed costs, the partnership with Hy-Line is proving beneficial as layer birds consume at least 10% less feed and lay at least 10% bigger eggs, benefiting the poultry farmers.

India, the world’s third-largest egg producer and fourth-largest broiler producer, is projected to witness a multi-fold increase in per capita consumption of eggs and chicken by 2040 to 280 eggs and 25 kg chicken, from 70 eggs and 4kg of chicken now.