Avanti Feeds


(Sanyam Jain) #1270

http://www.uniindia.com/govt-will-develop-roadmap-to-double-seafood-export-suresh-prabhu/states/news/1119622.html


(Rahul B) #1271

(Ayush Mittal) #1272

Good to see focus by Govt to support and grow the sector :slight_smile:


(Sanyam Jain) #1273

(Sanyam Jain) #1275

(Mahendra243) #1276

This means they found some irregularities in export? what it will have impact on avanti?


(Sanyam Jain) #1279

if EU find discrepancies than US will also forced to investigate cuz both eu and us follows same stringent rules


(Vivek Gautam) #1280

Good to see govt focus n help for sector. story for avanti seems intact imho


(Bheeshma Sanghani, PhD) #1281

I think that we have to keep in mind that all the products that Avanti sells are finally a commodity and the business should be evaluated like all other commodity producing businesses are evaluated. It certainly appears to have taken a pole position in the sector - there is no doubt. Its ROCs are also very high currently. However - over time in commodity businesses the marginal ROCs tend to gravitate towards the marginal cost of capital, so one cannot really expect the business to generate these fantastic returns for a very long time in the forseeable future. The governments push and support is great for the sector as a whole but it will only serve to commoditize the sector further and make businesses like Avanti trade at those multiples.

We have seen that happening in businesses like LT foods which also has great market leading products but in the end its a commodity and is available at commodity multiple levels.


(Peabody) #1282

But there is a price for efficiency and management capability to deliver. Branding also plays a big role in getting higher realizations.Classic examples are diary products and other off the shelf food items.If Avanti does very well, it will continue to have better multiples than competitors.


(django) #1283

Would like to add 2 cents.

If we refer to notes of visits to Avanti’s customers by VP members, it was mentioned that farmers 'ask for Avanti’
I think this is quite powerful.
And thinking aloud, if i were a shrimp farmer, i wouldn’t want to mess around with feeds - which is quite important ingredient in shrimp farming. I would ask for a trustworthy product.

Through this lens, I do not see Avanti as a strictly commodity player - unless the quality and technical guidance provided by Avanti to farmers become common.

Sincerely & humbly,
django


(aerofire) #1284

(phreak) #1285

Thanks for sharing this. I found some quips by the Indian packers interesting.

  1. “unfair”
  2. “no such thing as zero risk”
  3. repeated pointing of fingers towards Vietnam
  4. Indian officials said some rejected containers had been found clear of antibiotic residues by Indian laboratories
  5. Claiming that inspecting 50% of containers are “too high”
  6. “There’s been a lot of change in India,” he said. “The factories are ultra-modern. We are in 2018. It’s a billion-dollar trade now. So the EU team should consider re-listing.”

This I think is typical Indian reaction to pretty much every problem with our ‘chalta hai’ attitude. This is how I see it.

1 & 2. Denial - Not accepting that there is a problem
3. Pointing fingers outwards than inward thereby seeking social proof
4. Repeated denial despite being on the back-foot and insisting and questioning that the methods were wrong.
5. Does it matter if 50% or 10% or 100% of the shipments were inspected if there were no antibiotics?
6. We are bigger and so we should be let off the hook. Was the person who attempted this approach even sane?

Looks like Aquaculture industry is having its pharma moment. The impression I am getting out of the article is that the Indian side doesn’t seem to want to accept, analyse and handle the situation by educating the farmers and/or having tests done before accepting produce from farmers or whatever is required.

My gut feel says nothing bad might transpire out of this right away but this could blow up in the future if we continue this reluctance.

Disclosure: Invested


(manivannan.g) #1286

Two nice bulletins so far from the FM:

  • FM proposes to extend kisan credit card to fisheries & animal husbandry farmers and allocate Rs 10,000 cr for fisheries & aquaculture, animal husbandry funds.
  • Food processing sector is growing at average 8% per annum. Allocation in this sector is being doubled from 750 cr last year to 1400 crore in 2018-19.

(Rohit) #1287

Clarification by company :slight_smile:
http://www.bseindia.com/xml-data/corpfiling/AttachLive/bf05189a-846b-41cc-a8bc-09a9fbfe93be.pdf


(aerofire) #1288

(spvk1) #1289

https://mailchi.mp/undercurrentnews/exclusive-report-latin-americas-top-seafood-companies-862753?e=159ece93dc


(rvetri) #1290

I agree… A company having Avanti as a branded feed and having a market
share of 45% cannot be termed as a commodity…


(ValueInvestorAP) #1291

Government keen on expanding seafood export -

https://www.pressreader.com/india/business-standard/20180201/282187946458388


(Vivek Gautam) #1292

Good interview of an Avanti veteran at sea food fair. India becoming world leader in shrimp farming . Avanti another leader in its own segment due to reasons explained in the interview. Story intact IMHO.