Srinivasa partners with Hy-Line International to expand poultry footprint

It is starting egg-powder and chicken products manufacturing plants in Telangana and Andhra Pradesh

Hyderabad-headquartered Srinivasa Group has signed a strategic partnership with global layer poultry breeder Hy-line International to build an alternative layer of bird business across India. This is on the back of Hy-line birds that are expected to deliver superior quality eggs and margins to farmers.

The announcement comes a few months after it  ended the decades-old relationship with market leader Venkateshwara Hatcheries, as the terms of this relationship confined the former's layer breeding business to just eight coastal districts of Andhra Pradesh.

Srinivasa group delisted its flagship company Srinivasa Hatcheries a couple of years ago.

Along with its partnership, the company is starting egg-powder and chicken products manufacturing plants in Telangana and Andhra Pradesh.

These processing units would entail an investment of over Rs 300 crore that would be spent over the next three-four years, says Suresh Rayudu Chittoori, vice-chairman and managing director of Srinivasa Farms.

"Apart from securing an exclusive license to sell genetically improved Hy-line layer birds to Indian farmers, the company is taking part in a joint venture with Hy-line for establishing layer bird breeding farms," Chittoori added. The Indian partner will have a little under 50 per cent stake in the joint venture.

Layer bird business holds high-growth potential in the country and is expected to double the size to close to 500 million birds in the next four-five years as the per capita consumption is expected to grow four-times from the present 65 eggs level, Chittoori said.

Currently, almost the entire layer bird market is controlled by Hyderabad-based Venkateshwara Hatcheries (Venky's), which had built its poultry business across the entire value chain, including the bird vaccination.

Hy-line birds deliver superior quality eggs and consume 10 per cent less feed. Due to the quality of the contents and the size, these eggs would command a premium in the market, according to Chittoori.

"We have a checkered past as far India is concerned. We are entering India again as we found a suitable partner in Srinivasa group, which has a rich experience in poultry management,"Jonathan Cade, president Hy-Line said.

Among other things, Srinivasa is also planning to set up at least 300 retail stores for eggs and broiled chicken products in the South.