Avanti Feeds Limited (AFL) has marked its presence in the field of aquaculture by engaging in manufacturing high-quality feed for shrimps, operating the Vannamei hatchery, and processing and exporting shrimps. Avanti Feeds Limited is an integrated seafood company with segments including Shrimp Feed, Processed Shrimp, Power, and Shrimp Hatchery. Avanti Feeds is one of the largest shrimp feed manufacturers in the world and has a market share of 48%-50% in India.
Avanti started its commercial operations in 1993 under the able leadership of Late Sri Alluri Venkateswara Rao in technical collaboration with Pingtai Enterprises, Taiwan. Over the years, the company has evolved into a fully integrated aquaculture player, covering the entire value chain from shrimp seed production to feed manufacturing, processing, and export.
Avanti derives over 80% of its revenue by selling shrimp feed. It operates 5 feed manufacturing units with a combined production capacity of 6,00,000 MT, of which 60,000 MT is in Gujarat and the balance in Andhra Pradesh. The shrimp feed is manufactured and marketed to farmers, which is used in aquaculture to grow shrimp. Shrimp feed is the food given to shrimps and is an integral raw material for commercial shrimp farming. It provides a balanced diet and nutrition for farmed shrimp.
The company serves farmers primarily from the states of Andhra Pradesh, Tamil Nadu, and Gujarat. It accounts for over 50%-60% of the production cost for farmers. This positions Avanti as a critical supplier in the aquaculture ecosystem, directly impacting the profitability of shrimp farming operations across India.
Avanti Frozen Foods, a subsidiary of Avanti Feeds, is involved in shrimp processing & export of processed shrimp. Avanti Feeds derives close to 19.65% of revenue from this division. Avanti Frozen has 2 shrimp processing & export facilities with a total capacity of 22000 MT. It offers raw, cooked, and value-added shrimp products.
The shrimps are purchased from the farmers and are further processed and exported to various countries. Its products include raw shrimp, cooked shrimp, and value-added shrimp. Its value-added shrimps include marinated products, breaded products, skewers, and shrimp rings. They export to the USA, China, and Japan.
This division is supported by the technical expertise and quality systems of Thai Union Group (a global leader in the shrimp business). Thai Union also owns a more than 20% stake in the company. This partnership has strengthened Avanti's capabilities in both technical expertise and market access globally.
Incorporated in 2023, Avanti Feeds Limited expanded into the pet care industry by establishing Avanti Pet Care Private Limited (APCPL) as a subsidiary. APCPL focuses on manufacturing high-quality pet care products, leveraging Avanti Feeds' expertise in animal nutrition and feed formulation. Avanti Feeds' subsidiary, Avanti Pet Care, entered the pet food market with the launch of Avant Frust in Hyderabad. Following this, the stock rose by 6% on the launch day and has increased by 21% to date.
The company also has renewable energy operations. It has installed over four mills of over 3.2 megawatts capacity at Chitradurga, Karnataka. The power generated from windmills is sold to Bangalore Electricity Supply Company Limited (BESCOM) under a power purchase agreement.
Avanti Feeds announced a 45.8% increase in net profit to ₹151.77 Crore for Q4 FY25, with revenue up 7.9% to ₹1,385.14 Crore. Net profit of Avanti Feeds rose 45.83% to ₹151.77 Crore in the quarter ended March 2025, as against ₹104.07 Crore during the previous quarter ended March 2024.
For the full year, the company's consolidated net profit jumped 48.1% to ₹528.82 Crore, while revenue from operations increased 4.54% to ₹5,612.26 Crore in the year ended March 2025 over the year ended March 2024. The EPS of Avanti Feeds is 11.14 for the quarter ended March 2025 and 38.81 for the financial year 2024-25.
Meanwhile, the company's board recommended a dividend of ₹9 per equity share with face value of Re. 1 each for FY25, subject to approval of shareholders at the forthcoming Annual General Meeting (AGM).
Avanti Feeds Ltd has a market capitalization of ₹11,747 Crore. Promoter holding in Avanti Feeds Ltd has remained stable at 43.23% as of March 2025 (unchanged from June 2024). The company is almost debt-free.
The aquaculture industry faces several challenges that impact Avanti's operations. The key ingredients of Shrimp Feed are fish meal, Soybean Meal, Wheat, Vitamins & Minerals premix. The price of every shrimp feed ingredient has risen sharply since 2020. In contrast, there have been limitations in increasing the finished product price, leading to subdued margins for players such as Avanti Feeds.
The company has sought government intervention to ensure adequate availability of fishmeal in the domestic market for cost-effective shrimp feed production, as the duty cut is not adequate to provide sufficient relief. The export of fishmeal from India to countries like China, Taiwan, and Vietnam has surged over the past 8 to 10 months, resulting in a shortage of fishmeal for domestic consumption.
In a strategic move to navigate industry challenges and safeguard profitability and expansion, Avanti Feeds Ltd. Group is actively pursuing a multifaceted approach. This approach encompasses a focus on value-added exports, exploration of new markets, the introduction of ready-to-eat shrimp products, and a significant foray into the pet food sector through a collaborative effort with a Thai counterpart.
In addition to their diversification efforts, Avanti Feeds is exploring new markets, including China and Japan, in addition to their traditional markets in the US and Europe. Economic challenges in the latter regions have led to a 10-15% decline in shrimp export realizations.
Despite the challenges, Avanti Feeds continues to strengthen its position as India's leading integrated aquaculture company, with robust financial performance and strategic initiatives positioning it for sustained growth in the evolving seafood industry.
