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Venky's


Venky’s operates in the poultry industry with control over practically all aspects of the value chain from feed to hatchery to breeding and grower farms and processed chicken.  It also operates in two smaller segments i.e. animal health products and oilseeds.

Management expects growth of 15-20% in broilers and 8-10% in layers driven by increases in per capita consumption from a low base as a result of higher disposable incomes and increased urbanisation.

The company has reported consistent growth in revenues and operating profits over the last five years – reporting well over 100cr of operating profits on about 850cr of revenues in the last financial year.  It operated with minimal net debt.

The business is primarily exposed to the risk of high feed prices that are driven by high maize and soya costs, which accounts for 75-80% of production costs.  The lack of cold chains and retail infrastructure restricts growth in the processing segment.  Moreover, rising inflation could dent demand for poultry products particularly for people on relatively tight food budgets.  

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