The Hindu Business Line : SKM Egg Products in expansion mode

POULTRY major SKM Egg Products Export (India) Ltd is on a move to the take over the Hyderabad-based Indo Dutch Proteins, another egg-processing outfit, which is currently under the reigns of the Board for Industrial and Financial Reconstruction.

The move is part of the company's strategy to build additional egg processing capacity. SKM Egg Products Export, promoted jointly by the Erode-based SKM group flagship SKM Animal Feeds and Foods India and the Tamil Nadu Industries Development Corporation (TIDCO) in 1996, is involved in the manufacture and export of processed egg comprising whole egg powder, egg yolk powder and egg albumen powder. The company's Belgian collaborator Belovo also assists the company in marketing the products. The company is on an expansion mode and has chalked out plans to raise its egg processing capacity from the present 10 lakh eggs to 12 lakh eggs per day.The Hyderabad unit has a capacity to break four lakh eggs daily for manufacture of egg products. "We are quite aware of the utility of the Indo Dutch Proteins in our capacity expansion plans and we are quite convinced of latter's takeover. In the past four months, we were able to make the facility of Indo Dutch Proteins run for 30 per cent of its capacity and this year we could further raise it to 50 to 60 per cent," said Mr S.K. Mylanandhan, Chairman and Managing Director of the SKM Egg Products Export.

SKM Egg Products for the financial year 2003-04 had clocked 11 per cent growth in its sales at Rs 51.17 crore as against the total sale of Rs 46.24 crore the previous year. Its net profit for the year was lower at Rs 3.83 crore as against Rs 5.02 crore recorded during 2002-03. The board has declared a maiden dividend of 7 per cent for the the year 2003-04.

Meanwhile, the company said it had export orders worth Rs 51.5 crore to execute this year, which will compel the unit to enhance its egg processing capacity in-house.

"We have orders till December this year and we expect our export turnover to cross Rs 60 crore this fiscal. Going by the encouraging market trend for egg powder, a net profit to the extent of 10 per cent of the sale is achievable', Mr Shree Shivkumar, Executive Director of SKM Egg Products Export said.

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