Pioneers of the Aquaculture Industry in India
First Company to enter the aquaculture business in India in
a formal manner – incorporated in 1987 – operations
commenced in 1993 – over two decades in the industry
• Promoted by the Karam Chand Thapar Group which has
varied business interests ranging from coal, infrastructure,
real estate, manufacturing and aquaculture
• Currently focused on manufacture of shrimp feed and
processing of shrimp for export
• Headquartered in Chennai, Tamil Nadu with Manufacturing
plant located in Nellore, Andhra Pradesh
• Processing facilities are FDA and BAP approved, EU listed
and HACCP certified
• Recognized and appreciated for technical expertise, quality
of product and R&D initiatives.
Installed capacity at 35,000 MTPA.
Post merger of PFL, expected
capacity will be 1,10,000 MTPA to
be higher by 300%
• Increase volumes and market share
by leveraging on strength of highly
skilled technical manpower &
brands, wider product portfolio,
improved distribution network and
value-added services
• Increase in customers, market
presence, product portfolio and
revenue streams to provide natural
hedge
• Increase in scale expected to be
margin accretive – incremental
revenues to enhance return ratios
Entering more verticals within the
value chain – set to emerge as an
integrated player from farm to fork
• Formalizing plans to set up
hatcheries to supply good quality
seeds for shrimp farming
• Plan to forward integrate from
current set up of toll mfg.
(packaging of processed shrimp)
into direct exports
• Plan to offer value-added products
to farmers/customers/hatcheries
such as farm care products,
supplemental feeds, larval feeds to
improve farm practices, etc.
Scheme of Amalgamation
- Transaction Highlights
TWL to issue 4 fully paid up equity share of Rs.10 each for every 17 fully paid-up
equity shares of Rs.10 each, held by the shareholders in PFL SWAP-RATIO (4:17)
1
st August 2015 APPOINTED DATE OF
SCHEME
The transaction is subject to satisfaction of various conditions, including obtaining necessary approvals from the shareholders, creditors and
regulatory authorities including Securities and Exchange Board of India (SEBI), Bombay Stock Exchange under the Listing Agreement, and
sanction of the Scheme by concerned High Courts and / or any other appropriate authority as may be necessary
Equity Capital preamalgamation
Equity Capital post
amalgamation
Number of shares of TWL to
be issued
TWL
3.86 crore
shares
PFL
1.2 crore
shares
28.2 lakh shares of
Rs. 10/ each
TWL: 4.14 crore shares
Background - Pinnae Feeds Limited
Pinnae Feeds Ltd. is a wholly owned subsidiary of Karam Chand Thapar & Bros (Coal Sales) Limited; the flagship company of the
KCT Group (promoters of TWL)
• Incorporated in July, 2012 with the objective to meet capacity expansion plans for the Feed manufacturing business
• TWL was intended to be the sole customer
• Expansion could not be undertaken within TWL due to restrictions placed by one of its bankers
• Location :
– Manufacturing unit located at Nellore, Andhra Pradesh
– ~70 Kms away from TWL’s factory in Nellore
• Producer of shrimp feeds :
– Expansion undertaken in 2 phases; Phase I which was completed in FY15
comprised capacity of 40,000 MTPA and Phase II which was completed in
FY16 comprised the balance capacity of 35,000 MTPA
– Commenced commercial operation in H2FY14; supplied
6,062 MTPA of feeds to TWL during FY15
– Post completion of Phase II - Capacity of 75,000 MTPA
is now fully operational
– Aims to supply ~15,000 M.T. of feeds to TWL during FY16
• Financials :
– Revenues of Rs. 36.5 crore in FY15 from supply of feed to TWL
– Gross Block - Rs. 45.15 crore
– As of March 31, 2015 - Debt: ~Rs. 46.8 crore (including term loans as well as working capital)
TWL’s production capacity will increase from 35,000 MTPA to 1,10,000 MTPA
In FY15, Marine product exports from India were at an all-time high
of USD $5.5 billion.
– MPEDA envisages target of US $ 6.6 billion for the year
2015-16
• Marine product exports crossed all previous records in quantity,
rupee value and USD terms.
• USA is the largest market for Indian seafood products with a share
of 26.46% in terms of USD followed by South East Asia (25.71%),
European Union (20.08%), Japan (9.11%), other countries (8.58%),
Middle East (6.04%) and China (4.02%).
• Exports to USA had registered a growth of 16.94% in quantity and
13.39% in USD realization and are mainly attributed to the export
of Frozen Shrimp
During 2014 -15 shrimp aquaculture has shown a tremendous growth
(30.64%) and achieved highest production
• Frozen shrimp continued to be the major export item in the export
basket in terms of quantity and value
• The overall export of shrimp during 2014-15 stood at 3,57,505 MT
valued at Rs, 22,468 crore ($3.7 billion)
• The export of Vannamei stood at 2,22,176 MT recording a growth of
26.90% in quantity and 18.98% in USD terms
• With Vannamei shrimps becoming a money spinner in the Indian
seafood exports, the focus has shifted to farmed seafood products
and the share of sea catch has come down in the total seafood export
basket
.
