Apex Frozen Foods plans Rs 90 cr investment for expansion

Apex Frozen Foods, an integrated producer and exporter of aquaculture products, plans to invest nearly Rs 90 crore in setting up its biggest facility in Andhra Pradesh from the proceeds of public listing.

 

The company, which is going public on August 22, looks to raise nearly Rs 150 crore by divesting 28 per cent shares with promoters retaining 72 per cent.

 

Of the proceeds from the IPO, Rs 90 crores will be invested in setting up a 20,000 tons per annum shrimp processing unit at East Godavari District in Andhra Pradesh (AP), work at which has already started. The balance funds would be used for general corporate purposes.

 

The company has already invested Rs 10 crore in the upcoming plant. This will be the company’s biggest plant after an existing plant with a capacity of 9,240 tons per annum at Kakinada at AP and a third party facility with a capacity of 6,000 tons per annum. It had taken a capacity addition of 3,000 tons this year taking its total capacity to around 15,000 tons.

 

The company exports processed shrimps to the United States, United Kingdom and the European Union.

 

According to Care Ratings, India contributes 6.3 per cent of the total global aquaculture production and ranks second after China. The Indian fisheries industry, valued at about $15 billion, has emerged as a significant high-value contributor and key enabler of diversified Indian agriculture.