Hyderabad-based Avanti Feeds, a prominent player in India’s shrimp feed production sector, has reported a modest decline in sales volumes and revenue for the fiscal year 2022-2023, reflecting the broader challenges faced by the Indian shrimp aquaculture industry. Despite this, the company managed to weather the downturn successfully.
Avanti Feeds recorded total revenue of INR 40.41 billion (USD 492 million, EUR 442 million) for the fiscal year, representing a slight dip compared to INR 40.47 billion (USD 493 million, EUR 443 million) in the previous fiscal year (2021-2022). This decline was partly attributed to an 8 percent reduction in shrimp feed sales volume, dropping to 498,000 metric tons (MT) from 540,000 MT in the preceding year.
The decrease in revenue and sales volume mirrors the ongoing “market correction” in India’s shrimp industry. From April 2022 to March 2023, India’s shrimp exports amounted to 719,357 MT, down from 734,375 MT the previous year. Notably, shipments to the United States also experienced a decline during this period.
In a statement to shareholders, Alluri Indra Kumar, Chairman and Managing Director of Avanti, acknowledged the various challenges the company faced, including the global economic downturn, high inflation, and pandemic-related disruptions in China. Additionally, the company navigated through volatile farm gate shrimp prices throughout the year.
Despite these obstacles, Avanti achieved a net profit after tax of INR 2.3 billion (USD 28 million, EUR 25 million) for the fiscal year, up from INR 2 billion (USD 24 million, EUR 21 million) in the previous year. Kumar attributed this growth to the unwavering dedication of the company’s employees, strong support from value chain partners, and efficient supply chain operations spanning from farm to export markets.
Avanti’s performance in the fiscal year was marked by several strategic acquisitions, including the purchase of Srivathsa Power Projects, a natural gas-based power plant in Andhra Pradesh. Additionally, the company commenced commercial operations at its feed unit in the same state.
Looking ahead, Avanti Feeds expressed optimism regarding the demand outlook for shrimp, citing favourable farm gate prices and conducive conditions for shrimp cultivation. The company stated that it anticipates promising opportunities for transformative growth and is committed to delivering exceptional value on a global scale.
