It is heartening to see that the performance of your Company has improved significantlyin 2019-20 as compared to 2018-19. The Aqua Culture industry suffered a setback in 2018and made a quick positive recovery in 2019-20.
As you are all aware your Company is a well- acknowledged pioneer in the Indian Shrimpindustry with a proven track record of 27 years. We have technical expertise indeveloping need based feed in accordance with shrimp culture conditions prevailing indifferent regions of our country's vast landscape. Regularly our well-trained technicalteams visit our farmer friends brief them on the most suitable shrimp culture methods andupdate them on latest developments in aquaculture industry.
The shrimp production in India has registered a growth of about 10% - 12% at 800000Tons in 2019 as compared to 685000 tons in 2018. Shrimp feed consumption has registereda growth of about 10% at 1150000 tons in 2019 compared to 1020000 Tons in 2018. Inview of CoVID-19 impact the Global demand and production is expected to come down byabout 10% to 15% in FY21 compared to FY20.
As the industry was breathing a sigh of relief in 2019-20 after a serious setback in2018-19 the Covid-19 broke out as a pandemic posing a big challenge to the humanity. TheCorona Virus which unfolded in a big way during second half of 2019 in China spread like awild fire almost the entire world with India being no exception. The Covid-19 broke out inIndia during February 2020 leading to imposition of country vide lockdown from 24thMarch 2020 bringing all the activities to a standstill.
As an initial reaction to the pandemic the shrimp culture stocking slowed down duringApril and May 2020 apprehending a fall in export prices and export market. As you knowthe Q1 i.e. Apr-May-Jun 2020 are the months during which stocking takes place intensivelyand the production levels are forecasted depending on the stockings and extent of culturearea which missed in Q1 of FY21. There was also a shortage of Shrimp seed from hatcheriesas the normal operations of hatcheries were affected by lockdown. However things improvedgradually with the farmers gaining confidence due to more or less stable farm gate pricesand resumed stocking and the shrimp culture is in progress now.
There are deep-rooted nagging concerns about threats such as volatility ofInternational Shrimp Prices Farm Gate Shrimp Prices fluctuating Foreign Exchange RatesuS Anti-Dumping / Countervailing Duty etc. these concerns can be to a certain extent beoffset by developing domestic and alternative markets to supplement uS Exports strictadherence to traceability scientific pond management and by adopting judicious pricingand forex management.
We can also take heart from recent Government's policy of "Economic revolutionthrough Blue revolution" giving shape to the scheme "Pradhan Mantri MatsyaSampada Yojana" (PMMSY) for fisheries in May 2020 with an investment of over ' 20000Crores in next 5 years. This scheme aims at increasing fish and shrimp production in Indiaat an annual growth rate of 9% from 137.58 Lakh MT in 2018-19 to 220 Lakh MT by 2024-25.Hopefully if this scheme is implemented in right earnest it will go a long way in thegrowth of Seafood Industry.
Your company's power business segment also did well during the year. Our 3.2 MWwindmill project in Chitradurg (Karnataka) generated a fair output of 48.09 lakh units.Patikari Power - the 16 MW hydel power project in which your company has 25.88% equity -generated a fair output and gave us a decent Net profit. Srivathsa Power Projects - the17.2 MW gas-based power project in which your company holds 49.99% equity could only putup a modest output owing to limited supply of APM-gas from GAIL. Next year shouldhopefully see a better supply of gas from GAIL.
Overall your Company had a good performance from operations during 2019-20 details ofwhich are given in this Annual Report.
Looking back at Fiscal 2019-20 I can say with satisfaction that we effectivelycountered every business challenge that came our way and emerged stronger and profitable.Our success without a doubt is owed largely to the unstinted patronage by the farmers andcommitted employees across the board.
It is equally important that we acknowledge the resolute faith and support of ourextended family of customers dealers suppliers financial institutions and strategicpartners who travel with us in our journey.
I would like to extend my deepest appreciation to them and hope to see this bond groweven stronger over the coming years. Moreover I would like to express my sinceregratitude to my fellow Directors for their commitment and professionalism in pavingAvanti's long-term path
Despite all the turbulences that were encountered during the year your company boldlyweathered them all with its usual resilience and professional approach.
Alluri Indra Kumar
Chairman and Managing Director.