Srinivasa Farms, a leading poultry firm, has firmed up plans to invest up to ₹400 crore for its pan-India expansion and product diversification, apart from capacity enhancement in the next 3-4 years.

As part of this, the Hyderabad-based company has raised $23 million (approx ₹160 crore) from the IFC. The balance will be funded through internal accruals, PE investments, etc, said Suresh Rayudu Chitturi, Vice-President and Managing Director.

IFC, an investment arm of the World Bank, has proposed its investment in the form of either straight equity, compulsorily convertible preference shares or compulsorily convertible debentures.

The entire exercise of infusion of funds, expected to be completed by the middle of September, is expected to lead to an equity dilution of around 17-18 per cent. The promoter and promoter family collectively own over 80 per cent of the stake in the company. It was started in 1965 by Jagapati Rao Chitturi and is one of the oldest hatcheries in the State.

The investment by IFC will help the company expand its existing layer, broiler and breeding operations by setting up additional farms and hatcheries, expanding feed mills, adding soya refineries, setting up a food park in Prakasam district, and chicken and egg processing businesses.

At present, the company is focussed on the breeding business. “We intend to go to new markets in Gujarat, Haryana and Odisha next year. At present the focus is on strengthening operations in the traditional base of AP, Telangana and the recent ones in Maharashtra and Tamil Nadu,” Suresh told BusinessLine.

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