International Finance Corporation (IFC) has invested ₹65 crore in Srinivasa Farms that will help the poultry firm scale the business and part-fund expansion projects across the country.
A member of the World Bank Group, IFC had committed ₹130 crore, in lieu of about 20% stake in the company, and the investment made is the first tranche. The next tranche is expected to be invested by year-end.
Announcing the investment by IFC, Srinivasa Farms vice-chairman and managing director Suresh Chitturi said over the next 2-3 years “we will invest over ₹300 crore in doubling our capacities. The plan is to pursue a collaborative growth model to expand allied businesses such as retail, processed foods and agri-businesses, besides value-added products.”
In a media interaction here on Thursday, he said as part of expansion plans, the company would be setting up breeder farms and hatcheries in north India and Tamil Nadu. It wanted to do this at the earliest.
An integrated layer and broiler business company, with diversified interests in soya, feed, contract farming, chicken processing and retail, Srinivasa Farms has a breeder farm in Hyderabad and is in the process of setting up one more. Others will be set up outside Telangana, he said, adding the modern facilities will “pay for themselves in five years by way of efficiency gains.”
To a query, he said the plan is to triple the capacity in four years – from 3 crores layers and 3 crore broilers to 10 crore each.
A release said besides setting up of the state-of-the-art chicken processing plant near Hyderabad, to produce a variety of value-added chicken products for hotels and restaurants and fast food segment, the company is also putting up a Mega Food Park in Andhra Pradesh in a plug and play mode.
On retail store network expansion plans, Mr.Chitturi said the company would re-assess such plans in the context of the growth of e-commerce. “Where is the money better spent is what we are in the discussion now…”, he said, pointing out it would be better to ride piggyback, through a store in store concept, with e-commerce platforms.