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Small Indian shrimp factories may face chronic overcapacity despite rising raw material supply

 Last Update: 2022-08-16
 Source: Internet
 Author: User

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Apex Frozen Foods, one of India's largest shrimp processors, opened a new plant in Andhra Pradesh two years ago, but it is currently operating at less than 50% capaci.

In December 2019, Apex's new Ragampeta plant was officially put into operation, aiming to increase the company's production capacity from 9,240 tons to 30,000 to.
But because of a shortage of refrigerated containers, the new factory failed to fully develop its capacity, preventing the company from shipping its products to export marke.
In the fiscal year ending March 2022, the capacity utilization rate of the new plant was only 4

“While shrimp prices have been firm for the past year or two and the entire supply chain is full of opportunities, our growth has been constrained by the availability of containers,” Apex sa.

Apex was established in 1995 and is headquartered in Kakinada, Andhra Pradesh, and 80% of its products are exported to the United Stat.
The company rose on the Indian Stock Exchange and is now valued at about $106 milli.
In addition to shrimp processing, Apex also has a shrimp fry production business with an annual output of 4 billi.

Nitin Awasthi, an analyst at Indian investment bank InCred Equities, told UCN: "Many companies in India have expansion plans, and in the big picture, these companies are relatively small, unlike Ecuad.
Individual companies have overcapacity proble.
If the new Apex factory can fill up Load operation, there will be great growth potential in the futu.
At present, Apex's performance is lower than expected, and it lags behind other listed compani.
"

Another source said that India's shrimp processing industry is facing overcapacity problems, which have a knock-on effect, especially in some small compani.
"Currently, there are not many processing orders, but there are occasional contract orders, so overcapacity is a problem for the indust.
"

Apex said that to overcome supply chain bottlenecks, the company signed new service contracts, which will help improve logisti.
In recent months, the availability of refrigerated containers has increased, and the supply chain tension problem will be alleviated to some exte.

In 2021, India’s total shrimp product exports will increase by 28% from the previous year to 734,000 tonn.

Apex expects that the European and US markets will continue to grow, with Indian shrimp production expected to increase by 15-20% in 2022, with further increases in raw material supp.

Apex plans to improve more value-added processing lines to produce cooked, shelled, headed, shrimp, breaded shrimp and other produc.

The current capacity has nearly doubl.

shrimp

In December 2019, Apex's new Ragampeta plant was officially put into operation, aiming to increase the company's production capacity from 9,240 tons to 30,000 to.

But because of a shortage of refrigerated containers, the new factory failed to fully develop its capacity, preventing the company from shipping its products to export marke.

In the fiscal year ending March 2022, the capacity utilization rate of the new plant was only 4

“While shrimp prices have been firm for the past year or two and the entire supply chain is full of opportunities, our growth has been constrained by the availability of containers,” Apex sa.

Apex was established in 1995 and is headquartered in Kakinada, Andhra Pradesh, and 80% of its products are exported to the United Stat.

The company rose on the Indian Stock Exchange and is now valued at about $106 milli.

In addition to shrimp processing, Apex also has a shrimp fry production business with an annual output of 4 billi.

Nitin Awasthi, an analyst at Indian investment bank InCred Equities, told UCN: "Many companies in India have expansion plans, and in the big picture, these companies are relatively small, unlike Ecuad.

Individual companies have overcapacity proble.

If the new Apex factory can fill up Load operation, there will be great growth potential in the futu.

At present, Apex's performance is lower than expected, and it lags behind other listed compani.

"

Another source said that India's shrimp processing industry is facing overcapacity problems, which have a knock-on effect, especially in some small compani.

"Currently, there are not many processing orders, but there are occasional contract orders, so overcapacity is a problem for the indust.

"

Apex said that to overcome supply chain bottlenecks, the company signed new service contracts, which will help improve logisti.

In recent months, the availability of refrigerated containers has increased, and the supply chain tension problem will be alleviated to some exte.

　　Apex plans to improve more value-added processing lines to produce cooked, shelled, headed, shrimp, breaded shrimp and other produc.

The current capacity has nearly doubl.

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