Livestock feed manufacturer Anmol Feeds, which saw stagnating volume sales over the last two years, is expecting 30 per cent growth in business in FY-23 on the back of a pick-up in demand and the launch of an e-commerce portal for farmers.
The domestic livestock feed market, which includes cattle, poultry and fish feed among others, is estimated to be ₹1.5 lakh crore and likely to see CAGR of around 15 per cent in the coming years. The Kolkata-based ₹600-crore company, which has directly reached out to farmers, is expecting to clock higher growth, Amit Saraogi, Managing Director, Anmol Feeds, told BusinessLine.
“The HORECA [hotel, restaurant and cafe] segment was badly impacted during the last two years due to Covid-induced lockdowns and restrictions. This impacted chicken consumption and, thereby, also affected sales of livestock. But now we expect traction in demand,” Saraogi said.
The animal feed market is expected to witness exponential growth as the growing population numbers and rising income is likely to step up consumption of animal protein.
Though the company witnessed a growth in turnover during the last two years, backed by an increase in prices, the volume growth has remained muted, he said. “We are expecting 30 per cent growth in turnover in FY-23 backed by an increase in volume sales,” he said.
Prices of raw materials, primarily soyameal and maize, have almost doubled in the last two years and companies were able to pass on 94-95 per cent of the increased cost to customers, he said, adding that a price hike was inevitable moving forward.
E-commerce channel
Anmol Feeds launched its products under the umbrella brand Nouriture last year, besides introducing its floating fish and shrimp feed in the market.
Nouriture recently launched its e-commerce portal, where farmers can directly buy feed for poultry, cattle, shrimp and fish.
The portal has its own logistic team, which takes care of delivery. The service is currently available in states where the company has manufacturing and stock units. During the first two months of operation, the portal catered to more than 2,000 farmers and sold 300 tonnes of products. Nouriture aims to reach more than 10,000 livestock farmers in the next three months.
The website has an integrated WhatsApp chatbot for orders.
“This [portal] will enable farmers to get products at a better price,” Saraogi said.