The upside potential for the Indian poultry industry is expected to be huge due to the outbreak of avian flu in the US. And Erode-headquartered SKM Egg Products Export (India) Ltd will be no exception to this development.
The 100 per cent export-oriented egg-processing unit has started to bet big on its prospects. It recently started shipments to Russia.
"This is in addition to the exports to Japan, Europe and Middle East countries. Egg yoke market is really huge in Russia and we foresee significant growth in the coming years," said the company's Chief Executive Shree Shivkumar.
That's not all. Recent reports of avian flu outbreak among chickens in three large egg producing states such as Iowa, Minnesota and Wisconsin in the US would probably benefit SKM Egg Products.
ShreeShivkumar told Business Line that the company would be eyeing the US and China markets.
The company, which is among the largest egg processing units in Asia produces processed egg products like different varieties of egg powder and liquid egg and supplies to various international markets. The daily egg processing capacity of the plant is 1.8 million eggs, and the annual production of egg powder is around 6900 tonnes.
The egg processing unit touched new heights in export turnover and profitability in the just-concluded fiscal. Its net sales rose 13.5 per cent to Rs. 269.20 cr from Rs. 237.10 cr during the corresponding 12 months of the earlier fiscal.
It registered a four-fold increase in its net profit, a record since inception in 1997, at Rs. 25.19 crore compared to Rs. 6.81 crore clocked during the earlier fiscal.
The net sales during the 4th quarter of 2014-15 dipped marginally from a level of Rs. 68.07 crore in 2013-14 to Rs. 65.37 crore.
The company has since become a “Debt Free Company” as it chose to foreclose the entire term loans with SBI.
The company's Board has approved a 10 per cent dividend for 2014-15 fiscal.
Source : The Hindu Business Line