sustainability & energy efficiency poultry industry...major chillers in plant are ammonia...

…Transforming food production through innovation

Sustainability & Energy Efficiency in

Poultry Industry

www.srinivasa.co

Company Overview• Founded by a pioneer of the poultry industry by establishing his first poultry farm in 1965

• Today, Srinivasa is fully backward integrated in the poultry value chain, with presence in soya & feed, layer and broiler breeding and broiler integration (contract farming)

• With a vision to move up the poultry value chain, the Company recently set up a chicken processing unit and opened company owned retail outlets. It further plans to venture into egg processing and chicken value added products (ready to eat / ready to cook)

• Srinivasa is a leader in the poultry industry with long standing relationship with poultry farmers in its area of operations in AP

• Recently entered into exclusive pan-India distribution agreement with Hy-Line International for layer chicks

• The Company is headquartered in Hyderabad with over 2,500 employees and serves over 1,000 customers / farmers across 20 cities in the region

• Currently, Srinivasa is present in 12 states across India and is rapidly expanding further to cover all states of India.

Srinivasa at a Glance : a company with a purpose

Well integrated poultry player, on the path to become a leading food processing company

Existing Business

Feed

Soya

Layer & Broiler Breeding

Broiler Integration

Chicken Processing

Value Added Products

Retail Outlets

Egg Processing

New Businesses

Current Presence in India

( Operationalized Sept 2017 )

( Operationalized Sept 2017 )

279 439 501 546

684

FY13A FY14A FY15A FY16A FY17A

Revenue (INR cr)

Andhra Pradesh

Chhattisgarh

Karnataka

Gujarat

Haryana Telangana

Tamil Nadu

Maharashtra

Orissa

Punjab

West Bengal

Delhi

Pioneers of the Indian poultry industry …B2B (Since 1965)

B2C (Since 2017)

1965

First poultry layer farm started with 6,000 layer birds

1971

Co-founded Venkateshwara

Hatcheries

1978

Established layer and broiler breeding

(hatcheries) business

2012

• Acquired soya processing plant

• Started Broiler Integration (contract farming)

1983

Started the poultry feed business

2017

• Exclusive partnership with Hy-Line International for distribution of layer chicks in India

• Mega Food Park (poultry focused) project allotment

• Started chicken processing (1,000 BPH) in Telangana

• Opened 7 retail stores

2018 Onwards

• Reach 280 Freshen stores in the next 4 years• Set up of egg processing plant• Ramping up of chicken processing capacity• Expected commissioning of Mega Food Park• Launch of value-added products• Expansion to neighboring states followed by

pan-India presence by 2025

Feed & Soya

MT/GT/HoReCa

Broiler Breeding

Commercial Layer Farms

(Contract Farming)

Broiler Integration(Contract Farming)

Eggs

Value Added Products

Live Birds

Liquid & Powder Egg

Egg Processing

Chicken Processing

Chicken sausages, salami, ham, ready to eat & ready to cook products

Layer Breeding

Existing BusinessNew Business

Chilled Chicken

Poised to be leading farm to fork poultry player with improved efficiency & higher margins

B2B / Horeca

Business Overview

Soya• Srinivasa supplies high quality and unadulterated soybean meal to poultry farmers, poultry and [aqua]

feed mills

• The Company procures high quality soybean from:

Agricultural Produce Market Committee Mandis – 70%

Registered traders – 25%

Local farmers – 5%

• Raw material quality is ensured by a multi-step pre-cleaning system which effectively removes foreignmaterials

• The De-oiled cake is currently being supplied to Maharashtra, Andhra Pradesh, Telangana and TamilNadu.

Sustainability Features:• Soya plant is energy audited & thus follows strict norms for energy efficiency & safety.• We capture & store 100% rain water which falls on our premises.• GreenCo certification process is underway.• 25% of power requirement is met through solar power.

Seed Crushing Capacity 1,50,000 MT pa

Product Portfolio

Soya De-Oiled Cake (DOC)

Soya Hi-Pro

Grinded Soya DOC

By-products Sold

Soybean Oil - Crude & Refined

Overview

• Purest form of protein• Excellent source of Rumen Degradable Protein (RDP)

Soya Feed Layer Breeding

Broiler Breeding

Broiler Integration

Chicken Processing

Chicken VAP Egg Processing MFP Retail

Soya Plant

Inception 1983

Location Vijayawada

Installed Capacity 1,44,000 MT pa

Silo Capacity 15,000 MT

• Srinivasa is a leading manufacturer and supplier of poultry feedin AP with ~35% market share

• Raw materials used :

Overview

Other Materials such as amino acids, minerals, vitamins

and essential enzymes – 23%

• Maize procurement : ~70 to 80% of maize is procured locallyfrom 20 to 25 traders, while the rest is sourced from largetraders

• Other inputs are sourced directly from traders / manufacturers

• Feed is sold to customers / poultry farmers in AP & Telanganaas well as consumed captively for layer and broiler breeding andbroiler integration operations

Sustainability Features:• Feed plant is energy audited & thus follows strict norms for

energy efficiency & safety.• We capture & store 100% rain water which falls on our

premises.• 15% of power requirement is met through solar power.


Broiler Breeding

Broiler Integration

Chicken Processing


Feed

Maize – 39% Soya – 20% DORB – 17%

Feed Plant

Infrastructure

• Srinivasa is involved in layer parent flock breeding operations since1978

• The breeding operations are present in Telangana, Andhra Pradesh &Tamilnadu

• In 2017, the Company entered into an exclusive partnership withHy-Line International for distribution of layer chicks in India

• Breed Marketed

Hy-Line - W80 & Silver Brown (pan-India)

• Parent Capacity: ~4.5 lakh birds

• Output Capacity : 450 lakh day old chicks per annum’

• The Day-Old Layer Chicks are sold to 10 states across India (AP,Telangana, Tamil Nadu, Maharashtra, Orissa, Chhattisgarh, Punjab,Haryana, Karnataka, Gujarat)

Sustainability Features:• Energy efficient ventilation design is under process & would save

operating cost by about 40% & improve production.• Rain water harvesting for all sites underway.• Poultry litter is being composted & given to farmers.

Parent – Layer Breeding Process

Receiving Day Old Chicks Parent Stocks

Rearing of Chicks in Poultry Farm

Collection, Grading of Eggs & Transfer to Hatchery

21 Days Incubation Process @ Hatchery

Sale of Day Old Commercial Chicks

Overview


Broiler Breeding Broiler Integration Chicken Processing Chicken

VAP Egg Processing MFP Retail

Layer Breeding

Layer Birds

Hatching Eggs

Incubation

Inspection

• Broiler breeding operations are located in Andhra Pradesh and Telangana

• Breeds Marketed – Ross (Aviagen)

• The Company supplies day old chicks and hatching eggs to poultry farmers / broiler integration for chicken meat production

• Infrastructure includes - Separate brooding, growing and laying sheds, Cold storage rooms, Feed and disease testinglaboratories

• Parent Capacity: ~2.2 lakh birds

• Output Capacity : 275 lakh hatching eggs per annum

• Broiler day-old chicks and Hatching Eggs are currently being sold across 4 states i.e. Orissa, West Bengal, Telangana & AP.

Sustainability Features:• Energy efficient ventilation design is under process & would save operating cost by about 40% & improve production.• Rain water harvesting for all sites underway.• Poultry litter is being composted & given to farmers.

Overview


Broiler Breeding

Broiler Integration

Chicken Processing


Broiler Breeding

Open Sided Deep litter sheds are used for broiler birds

• Since 2012, Srinivasa has been successfully engaging farmers for Broiler Integration (BI) Farms (Contract Farming)

• BI farms are currently located across 7 branches in AP and Telangana rearing ~63 lakh birds

• We are encouraging farmers to shift from Open house to environmental controlled houses by promoting in-houseddesigned ventilation system to improve productivity & profits margin by :

• Farmer can house about 1.5 times more birds in the same area than open house

• Less mortality and better FCR

Overview

Promoting shift from Open deep litter shed to Environmental controlled house


Broiler Breeding

Broiler Integration

Chicken Processing


Broiler Integration

• Srinivasa will have 3 chicken processing units by 2025 with a total capacity of 5,000 birds per hour (BPH)

• Birds are sourced directly from broiler integration farms to the chicken processing plant

• The birds are checked for microbial infections and quality after which they are unloaded from their transport crates, slaughtered, plucked, cleaned, cooled and graded

• The chicken are either chilled, frozen and packaged, or processed further into various products prior to sale to distributors

• Slaughtering is done under veterinary supervision and as per Islamic rites (Halal Process)

• Stringent quality measures are in place to monitor good manufacturing practices at all steps

• The processed chicken is being sold to 4 states in India (AP, Telangana, Maharashtra & Delhi)

Unit 1 Unit 2 Unit 3

Year Sept 2017 2019 2020

Location Medak, Hyderabad Within MFP, Prakasam, AP

South India

Capacity 1,000 BPH 2,000 BPH 2,000 BPH

Certifications

Chicken Processing Units

HACCP and ISO In process

FSSAI Certified

HALALCertified

Customer Audits


Broiler Breeding

Broiler Integration

Chicken Processing


Chicken Processing

CPP Plant

Birds being Processed

Sorting & Packaging

Chicken ProcessingSustainability Features:• Major chillers in plant are ammonia chillers thus reducing

damage to environment.• We capture & store 100% rain water which falls on our

premises.• Process water is recycled back after going through the

ETP & other treatments.• 15% of power requirement is met through solar power.• Some of refer vans use Phase Change Technology & are

energy efficient & consume less diesel.• Boiler uses briquettes created from Agro-Residue & thus

is non polluting compared to coal.• All the waste material is cooked/rendered & no portion of

waste goes out of plant premises without being properlytreated.

• Waste heat utilization is under planning and wouldreplace hot water generation using electricity.


Broiler Breeding

Broiler Integration

Chicken Processing


Chilli Sausages

• Srinivasa has entered into a joint venture agreement with a German Food Company to manufacture and market chicken value added products (VAP)

• The Company will bring its expertise in the entire value chain – sourcing of equipment, production planning and sales & marketing

• Products include chicken ready to eat / ready to cook products, sausages, salami, ham, chicken samosas, nuggets, cold cuts, etc.

• Srinivasa will sell chicken value added products under its own brand name to HoReCa, Modern Trade, Super Markets and own retail stores - Freshen

German food Company based in Bangalore, India

Exclusive tie up with Srinivasa for chicken VAP

Strong channel spanning major cities in India – Kolkata, Delhi, Pune, Mumbai, Goa, Hyderabad, Bangalore, Chennai, Pondicherry and Kochi

Products free of soya, lactose and gluten

To be ISO 22000 & HACCP Certified

Overview

Plain Sausages

Coldcuts

Meatloaf

Nuggets

German Sausages


Broiler Breeding

Broiler Integration

Chicken Processing


Chicken Value Added Products

Year• Unit 1• Unit 2

• 2019• 2023

Location:• Unit 1• Unit 2

• Within MFP at Prakasam (AP)• Andhra Pradesh

Capacity• Unit 1• Unit 2

• 0.5 million eggs / day• 0.5 million eggs / day

Customers Institutional & Retail

End Markets India & Exports (Japan, Europe and Russia)

Egg Grading Egg Handling Egg Breaking Yolk Separation

End ProductsEgg Powder

Yolk

White

Whole egg

Egg Liquid

Whole egg

Overview


Broiler Breeding

Broiler Integration

Chicken Processing


Egg Processing


Broiler Breeding

Broiler Integration

Chicken Processing


CPC / Mega Food

Park(Prakasam)

PPC(Krishna District)

PPC(Kurnool District)

PPC(West

Godavari District)

The MFP will operate as a hub-and-

spoke model, with one Central

Processing Centre (CPC), three

Primary Processing Centres (PPC)

and several Field Collection

Centres (CC)

Central Processing Centre (CPC)• Processing for chicken/shrimp/meat

• Value addition to meat products (RTE/RTC)

• Egg processing facility – liquid & powder egg

• Quality assurance lab

Primary Processing Centres (PPC)• Egg grading, cleaning & packaging

• Fruits & vegetables processing

• Silos & warehousing infrastructure

Collection Centres (CC)• Vegetable, fruit and poultry farmers from adjoining areas

CC

CC

CC

CC

CC

CC

CC

CC

CC

&

Overview• The Mega Food Park (MFP) functions like a facilities cluster for food production and

processing infrastructure

• The MFP, a collaboration between Srinivasa and Malaxmi Group is being set up inPrakasam District in Andhra Pradesh and expected to be operational by 2019

• The food park is approved and supported by the Andhra Pradesh Food Processing Society(APFPS) under the MFP Scheme, Government of Andhra Pradesh (GoAP)

• The MFP is one of the first of its kind in India focused on chicken and egg processing

Proposed location: Krishna, Kurnool and West Godavari

Location: Prakasam

Mega Food Park

# of FRESHEN stores• Current : 10 stores in Hyderabad

• Future : 280 stores by FY21

• Srinivasa has recently ventured into retail stores under the brand name ‘Freshen’ for fresh, high quality and HALAL certified chicken

• USP: “Fresh, hygienic and traceable food”

• The first store was opened in Hyderabad in Sept 2017

• Fresh chicken is sourced from the Company’s own chicken processing plant

• Store Characteristics:

No slaughtering of birds

Clean, hygienic and pleasing ambience

Precise cutting and packaging machines

Ample storage, display freezers and chillers

Products Sold• Current : Chilled chicken – whole bird (skin / skinless) and special cut

• Future : Chicken value added products – RTE / RTC, eggs, egg liquid and egg powder, etc.

Average store size• 100 Square Feet

Hyderabad 100

Vizag 50

Vijayawada 30

Rest of Telangana 50

Rest of AP 50

Total 280

Planned Stores by City

Overview


Broiler Breeding

Broiler Integration

Chicken Processing


Retail Store

Thank you

sustainability & energy efficiency poultry industry...major chillers in plant are ammonia...

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