Srinivasa Farms

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Srinivasa Farms Private Limited (“Srinivasa” or the “Company”) operates an integrated layer and broiler breeding business in India and is headquartered in Hyderabad, Telangana (TS), India. The Company has presence in soybean crushing, feed mills, layer and broiler breeding, integrated contract farming and a slaughterhouse (Chicken Processing Plant). Existing facilities of the Company include:Soybean Crushing Plant – The Company currently has one soybean crushing plant located near Nagpur with an installed crushing capacity of 150,000 MT per annum. Soybean is procured locally within an area of 200 km from the plant. Soybean oil production is about 3,000 liters per hour, using a solvent (Hexane) extraction process.Feed mills – The Company currently has one feed mill located near Vijayawada with a combined production capacity of about 144,000 MT per annum. Formulations for feed are developed with the assistance of in house and international consultants from the breeding companies. Maize, soybean meal and de-oiled rice bran cake are the principle ingredients in preparation of the feed. Soybean meal is procured from the Company’s own crushing plant.Layer and Broiler Breeder Farms – For the layer business, the Company has a parent capacity of 450,000 parent birds and an output capacity of 45 million day old chicks (DOCs) per annum. From the broiler breeder farms, the Company has a capacity of about 220,000 parent birds and produces about 27.5 million Hatching Eggs (HEs) per annum. Further DOCs from these HEs are supplied to broiler integration (contract farming) for chicken meat production and external commercial broiler farmers.Integrated Contract Farms – Broiler integration (contract farming) farms are currently located across 7 locations in Andhra Pradesh and Telangana rearing about 6.0 million birds. The Company through its extension services provides contract farmers with DOCs, feed, veterinarian care and technical advice. Contracted farmers provide day to day care of birds, land and infrastructure. Farmers earn a fixed minimum income and incentives based on productivity and mortality. The Company sells the chicken produced from integration to: (a) traders who then sell in the wet market; and (b) captively consumes it in the Company’s chicken processing plant.Chicken Processing Plant (CPP) – The Company has recently completed a new Chicken Processing Plant located near Hyderabad with a throughput of 1,000 birds/hour. The facility has a license from the Food Safety and Standards Authority of India (FSSAI), and working toward obtaining ISO/HACCP certification.Mega Food Park (MFP) – The Mega Food Park is currently being developed as a cluster for food production and processing infrastructure in Andhra Pradesh with an anticipated completion date in 2020. Spread over 54 acres, the MFP will operate as a hub-and-spoke model with one Central Processing Centre (CPP) and three Primary Processing Centers (PPC).The proposed project involves IFC investing equity in an INR equivalent of approximately US$ 23 million in Srinivasa Farms Private Limited in the form of straight equity / compulsorily convertible preference shares / compulsorily convertible debentures in the Company. The proposed investment will support Srinivasa to: (a) expand its existing layer, broiler and breeding operations by setting up additional farms and hatcheries; (b) expand its feed mills and add soya refineries; (c) setup a food park; and (d) setup chicken and egg processing businesses (the “Project”).