0

Founded in 1965, Hyderabad-based poultry company Srinivasa Farms is a five decades old company that up till now engaged in poultry production & breeding business. The firm however now wants to invest in startups and has lined up expansion plans to the tune of ₹300 crore, which includes ₹150 crore it had raised last month from International Finance Corporation (IFC), the investment arm of the World Bank Group.

The company is planning to set up a family office under its delisted group firm Srinivasa Hatcheries Ltd and through this family company it will invest in startups in sectors like agri-businesses.

By investing in startups, Srinivasa aims to pursue a collaborative growth model to enter into allied businesses such as agri-businesses, retail and processed foods including ready-to-eat and ready-to-make products.

Notably, last year Srinivasa Farms had already ventured into retail with eight stores in Andhra Pradesh and now the the company plans to create an omnichannel model with an online component, in which the firm will partner with an e-tailer for enabling online ordering and deliveries.

The company, which currently has operations in Telangana, Andhra Pradesh, Tamil Nadu and Karnataka is all set to expand into Maharashtra, Haryana and Punjab, soon.

According to Suresh Chitturi, vice chairman and MD of Srinivasa Farms, the company will invest over ₹300 crore in next 3-4 years in order to double up its capacities, extending its retail footprint and enter allied businesses as mentioned above.

Last year, the company had also announced plans to launch a poultry-focused mega food park in collaboration with Malaxmi Group in Prakasam district of Andhra Pradesh. It also plans to set up a food park and chicken and egg processing businesses.

The company is trying to get manufacturers of ready-to-eat and ready-to-cook products, like biryani, curry mixes, packaged omelette and juices, to set up base in the food park. The company’s retail footprint will help sell these products under a joint collaboration model, said Chitturi.

In 2017, Srinivasa Farms joined hands with US-based poultry firm Hy-Line International to expand globally. In 2016-17, it recorded revenue of ₹750 crore.

Chitturi, who is also the vice chairman of the International Egg Commission, is engaged with global bodies such as World Organisation for Animal Health and World Health Organization.

Related – What Does the Food Industry in India 2018 Look Like?

The food processing industry is one of the largest industries in India and ranks fifth in terms of production, consumption and exports. India’s food and retail market is expected to touch $ 482 billion by 2020, up from $ 258 billion in 2015.

To recall, in April this year it was reported that the Mumbai dabbawalas, a group of men delivering lunch tiffins across Mumbai and its suburbs, are setting up a start-up business in the food processing sector.

Last year, Japanese investor & incubator Mistletoe along with startup accelerator GSF and Infobridge had launched “Gastrotope”, a new Agri-Food tech accelerator in India, with the vision to catalyze the creation of a new agriculture and FoodTech enabled industry ecosystem that builds upon India’s rich food diversity and focuses on sustainability throughout the ‘farm to fork’ value chain.

India is ranked at 15th in the list of top 20 exporters of agricultural products, worldwide. The agricultural exports grew at CAGR of 16.45% and reached from USD 11.3 billion in FY 2010 to USD 38.21 billion in FY 2018.

The agricultural ministry has been allocated USD 8.9 billion in the Union Budget 2018-19. In FY 2018, it is expected that the Gross Value Added (GVA) by the agriculture, forestry, and fishing will grow to USD 274.23 billion.

Source – Live Mint

Like this content? Sign up for our daily newsletter to get latest updates.

Comments

comments

Vardaan
Founding editor at IndianWeb2, he's been writing at IndianWeb2 since 2007. Apart from blogging he had a professional career of software developer, Ux developer and search engine marketer in past. His vision of IndianWeb2 has been laid down so as to showcase, encourage and propagate Indian startups, innovation and entrepreneurship ideas.

Hyderabad-based GSS Infotech Acquires US-based Cloud Computing Firm Nexiilabs

Previous article

India’s 1st Cryptocurrency ATM Unveiled in Bangalore; 30 More ATMs to be Installed

Next article

Comments

Comments

comments

Comments are closed.

More in startups