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Hy-Line International, a US-based player in the poultry layer genetics firm, has signed an agreement with Srinivasa Hatcheries to tap the layer poultry business in India. Though Hy-Line is operational in the country for some years, it could not make good progress for lack of strength in distribution.
The two firms would form a joint venture for the transfer of layer genetics, in which Hy-Line would have a majority stake. While Hy-Line would take care of genetics, Srinivasa Hatcheries would focus on selling the chicks to poultry farms across the country.
To support this joint venture, Srinivasa Hatcheries would put in Rs 300 crore in setting up facilities, which include an egg powder plant in Prakasam district of Andhra Pradesh.
“We will raise funds internally and at a later stage might go for raising funds for expansion. We will deploy Rs 300 crore in centres across the country in the next four years,” Suresh Rayudu Chitturi, Vice-Chairman and Managing Director, of Srinivasa Group, has said.
He said value-addition in the country was very low as against in countries like China and Japan. “We need to promote the value-added products made of eggs in order to increase the per capita consumption. The per capita consumption of eggs in India is put at 65-67 eggs against 280 in China and 340 in Japan,” he said.
He said egg consumption was set to grow as the per capita income of the country was growing. Pegging the size of the poultry industry in the country at Rs 1,00,000 crore, he said it needed value-addition to get a higher value for the products.
Suresh Chitturi said Hy-Line layers could give farmers better quality eggs with more weight by spending less on feed.
Retail foray
The firm, which went for delisting, is also planning a foray into retailing of poultry products. “We are going set up 25 retail outlets this year in Andhra Pradesh and Telangana. The number will grow to 300 in the next three years as we expand to other States as well,” he said.
Jonathan Cade, President of Hy-Line, said the company has a market share of 50 per cent in the top-10 markets in the world and hoped to tap the Indian market as well with the partnership with Srinivasa Hatcheries.
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