Srinivasa Hatcheries planning two processing units in Hyderabad, Prakasam

To set up chicken processing unit at Hyderabad in two weeks and egg powder unit at Prakasam in 18 months.

By Author  |  Business Bureau  |  Published: 30th Jul 2017  10:53 am
Hyderabad
Srinvasa Group managing director C Suresh Rayudu (left), chairman C Jagapati Rao and Hy-Line International president Jonathan Cade exchanging the JV agreement on Saturday.

Hyderabad: Srinivasa Hatcheries is setting two processing units-one at Hyderabad and one in the Mega Food Park coming up at Prakasam. The city unit will be operational in about two weeks and will have capacity to process 2,000 birds per hour in the initial phase and increased gradually.

The second one will be do egg powder and other products useful in bakery and will have a capacity to process about five lakh eggs per day. This will be ready in about 18 months and serve domestic as well as export markets, said its Srinivasa Group vice-chairman and managing director C Suresh Rayudu.

The group plans to sell the meat to retail outlets as well through its own chain, Freshen. It plans to set up 25 stores this year and take the number to 300 such retail units over next three years in Telangana, Andhra Pradesh and Tamil Nadu, he said

For all these, it will invest about Rs 300 crore in about two or three years.

It also announced a joint venture with Hy-Line International, a world leader in poultry genetics. Through this partnership, Srinivasa Group will distribute Hy-Line commercial layers throughout India. China, USA and India are the world’s top three layer (egg producing) markets.

Srinivasa was earlier one of the investors in Venkateshwara Hatcheries. It two months ago had terminated the arrangement and is now partnering with Hy-Line. “Our credit ratings were getting affected. There was no value addition and we were limited to operate in only eight districts of Andhra Pradesh despite huge demand and potential,” Rayudu said.

It will continue to get chicks from the previous business for about 16 months and the supply will gradually taper. At the same time, it will focus on increasing the supply through the Hy-Line joint venture, he said.

“There is a lot of demand for layers. We will get a day old chicks from the joint venture and nurture them. We will keep them for 90 weeks. The offsprings of these parental lines will be sold to other farmers,” said Chitturi adding that supplies will be constrained in the initial months but could have five lakh parents by end of 2019.

The poultry industry in India is around Rs 1,00,000 crore and is expected to grow 10 per cent over the next few year. The per capita consumption in India was 65 eggs while in Japan it was five times more at 330 eggs. Use of processed egg is low in India. Once the trend catches up, the consumption of eggs will rise.

Out of this Hy-Line has significant presence in China and US. Hy-Line produces and sells egg stock to more than 120 countries and is the largest selling layer in the American egg industry, said Jonathon Cade, president, Hy-Line International.

Typically, farmers keep the birds for 80 weeks and get about 330 eggs. With Hy-line breed, they can keep them for 90 week and get about 400 eggs from each.