Denvik Technology, an IoT solutions provider that has made a name for itself in the equipment automation space with an impressive client list that includes names like FLSmidth, Elgi and Grundfos, wants to replicate its success with Ornithon, its integrated smart solution for new-age poultry farms.
But what made the company, which has built a reputation for quality and trustworthiness with the deployment of its equipment automation solutions across 35-plus countries over the last 15 years, choose the poultry industry for diversification? Mohideen, the company’s Director said, “Lot of processes today on a poultry farm are manual, time-consuming and error-prone. Getting optimal output from birds is complex and requires accurate and timely tracking of various environmental parameters...ammonia, temperature, humidity...accurate growth monitoring, and scheduling timely interventions to detect early issues/outbreaks, etc. Solutions available now are stand-alone and do not provide integrated and holistic monitoring of operations. This is where Ornithon can make a difference with its intelligent, holistic cloud/IoT-based solution. It allows for farm management to get instantaneous alerts and schedule timely interventions whenever there is any parameter/process deviation.”
Open vs closed shed
While many of the challenges that the industry faces are universal, some are unique to markets like India. “In India, a lot of poultry sheds tend to be open sheds. Compared to closed sheds, open sheds have lower egg output, lower profitability, and higher bird-mortality as it is more difficult to monitor and control several key parameters. Sometimes bird mortality rates in an open shed can be 10-20 per cent higher as compared to closed sheds. With Ornithon, poultry farmers can easily convert their open shed setup to a closed one for greater efficiencies, higher revenue, and lower bird mortality rates. In fact, in large poultry farms in Tamil Nadu, after Ornithon’s deployment, monthly revenues increased by 11 per cent, egg production was up by 14 per cent and bird mortality rate was down by 3 per cent,” said Mohideen.
On the company’s targets, he said, “The bottom-up total addressable market in initial target regions i.e., the Middle East, India, and Europe, is around $540 million, our assessment shows. Conservatively, we are targeting a 5 per cent market share in the next 7 years.”
Is the company, which recently received funding from CI Hub for overseas expansion, looking to build a war chest to up its game? Mohideen said, “As a team, we have always been focused on scaling the business with solid unit-level economics. We have largely used debt to fund our expansion plans in the past. We are looking at onboarding strategic investors who have expertise/interest/network in the domain and would like to partner with us in the longer run. These investors could potentially be companies, high net worth individuals or family offices.”
Talking about the company’s other segments, Mohideen said Denvik is planning to set up a European headquarters in Portugal later this year to better service its existing clients and expand customer base for its office automation solutions. As far as sustainability solutions are concerned, the company is focused on the Middle East, particularly the UAE market, with the governments in the region stepping up efforts to become net zero by 2050.