I attended their AGM and am sharing my notes.
Q. How does the fish meal economics work? For 1 ton of fishmeal what are the raw material required?
- They use fish waste (by-product for fishermen and fish processing factories) to make fish meal and then sell it to feed cos. General yield is around 22-25% (major raw material is surimi for protein content). Company makes fishmeal of 57-58% protein content, sells it to traders who top it up to make 60% protein content. Of all the purchases, max yield potential is 25% (so 100 tons of purchase will give 22-25 tons of fish meal)
Q. One of the major raw materials which is frozen tachiuo surimi (fish paste) lepturacanthus savala is being sold by group company called Amarsagar Seafood Pvt Ltd. Are there other group companies involved in the same business? If yes, are there plans to bring everything together in the listed company?
- Surimi is a different product. No plans of bringing in group companies into the listed company
Q. 86 lakhs capex in FY22, what was it for?
- Expanded into larger size fish driers which helps in processing fish meal (steam drier).
- Expansion plans: Currently operating at 65-70% utilization and plans to reach 80% utilization before further expansion. So not planning on any major expansion in FY23
Miscellaneous
- It’s a seasonal business (9-months of fishing season) where performance depends on fish catch in a given season. This makes the business very nature and season dependent which makes it hard to guide growth rates. Expect to grow by 10-15% in FY23
Disclosure: Not invested (no transactions in last-30 days)