Dear Stake holder
It's my pleasure to address you all
India possesses abundant and varied resources both in marine and inlandsectors which facilitate development of aquaculture business. The country has a longcoastline of 8129 km in addition to vast inland water resources and hence offers scope forlarge exploitation of marine wealth.
The aquaculture sector of India witnessed a boom with the introductionof White leg shrimps (Litopenaeus Vannamei; also known as Penaeus Vannamei) in 2004. Overthe past decade production and export of Vannamei shrimps has outpaced the native speciessuch as the Black Tiger which was the dominant farmed species until 2003.
Our Company started the food testing laboratory through IPO whichestablished with an aim to achieve complete safety by sampling and testing of each day'sproduction. Later on Our Company moved to the business of Shrimp hatchery with the helpof Promoter's expertise & aptitude in Hatchery business acquiring plant with acapacity of 400 mn units' production during August 2014 located at Poompuhar SeerkazhiNagapattinam District Tamil Nadu. After which the Company made lab activities at free ofcost to all customers/retail formers to promote business of Hatchery.
A Year before the Company invested in acquisition of another Hatcherywhich possess Maturation facility and seed production unit with a capacity of 250 mn froma partnership firm a Chennai based trading firm rearing and trading of prawn seeds. Togive effect to the purchase Company allotted 3365275 shares with Premium to the partnersfor consideration other than cash amounting sale value of Rs. 20.19 crore.
As a favorable outcome of Hatchery business Company has recordedRevenue of Rs. 60.44 crore in 2018 compared to Rs. 36.45 crores in the year 2017.Resulting in increased Profit of Rs. 10.93 Crores in 2018 compared to Rs. 2.65 Crores in2017.
Since this is being the first year of operation after acquisition ofbig maturation facility and rearing of seeds the Company forced to provide credit salesto capture the market. At the same time fortunately the Company got good survival in thetanks beyond the capacity of producing 650 million the Company produced 1000 million thatis why beyond our target and expectation of achieving 53 crores revenue this year theCompany accorded 60 crores plus revenue. All the farmers/customers are known persons whichmade our Company to realise the sales as early as possible. Since the promoters are inthis field for the past 25 years has good relationship with the farmers Collection ofdue is not a big task.
When the output is more the input of feed chemicals and otherconsumables are also high. Here in aquaculture there will not be a proportionate increasein the inputs but to attain the size to sell the seed as per the farmers requirement toavoid transport mortality there will be a delay of one or two days in packing. Because ofthe increase in inputs especially the fresh feed that is blood worms squid oyster etc forbrooders the Company paid advance to the suppliers. This made delay in payment ofregulatory dues which was paid off in subsequent days.
Going forward the favorable monsoon is expected to result in thesignificant trading opportunities. Company is planned to introducing new and innovativetechnologies to cope up with global advanced technology requirement. The year inretrospect was truly eventful- Enthused by the performance we are redoubling our effortsto face the emerging challenges with greater confidence.
I take this opportunity to thank all the employees of the companywhose dedication and confidence in the management has contributed to the success of thecompany. I also take this opportunity to thank all the shareholders for their continuedfaith in the company and understanding they have shown.
|Lithya Joseb |