Top 5 Seafood Stocks in India Poised for Explosive Growth as Rs 1 Trillion Exports Eyed

Editor's note: Following backlash alleging India's food safety and bad labour conditions in the shrimp industry, a government official said that said India's 500 plus seafood units are regularly inspected and monitored by various government agencies.

He further added that India is aiming to increase seafood exports to Rs 1 trillion mark in the next two years by increasing its processing capacity and shifting to higher value-added products.

Note that this is a big jump, more than 55% to be precise, from the current exports.

Major focus is on quality standards, increasing processing capacity and shifting to higher value-added products.

Continue reading to know more about the massive opportunity in the Indian seafood industry.

Top 5 Seafood Stocks in India Poised for Explosive Growth as Rs 1 Trillion Exports Eyed

India, endowed with an extensive and diverse coastline along with a thriving river environment, proves to be an excellent location for aquaculture.

Boasting a coastline that stretches over 8,118 kilometres, India has evolved into the world's third-largest seafood-producing nation, supplying quality seafood to major global markets.

In the financial year 2022-23, India's seafood exports surged by 4.31% to an all-time high level, reaching US$ 8.09 bn, primarily fuelled by a notable increase in frozen shrimp shipments.

The seafood sector garnered attention following Finance Minister Nirmala Sitharaman's Budget speech where she highlighted the sector's impressive growth since 2014.

The announcement of the PM Matsya Yojana further underscores the government's commitment to inland and aquaculture development.

Sitharaman emphasized the acceleration of the Pradhan Mantri Matsya Sampada Yojana (PMMSY) to boost aquaculture productivity, aiming to increase it from the current 3 to 5 tons per hectare.

The ambitious plan includes doubling seafood exports to Rs 1 trillion (tn) and generating 5.5 m employment opportunities.

Additionally, the establishment of five integrated aquaparks is on the agenda.

To promote climate-resilient activities for Blue Economy 2.0, the government plans to launch a scheme focusing on restoration and adaptation measures, coastal aquaculture, and mariculture with an integrated and multi-sectoral approach.

This recent development serves as an enticing incentive for seafood companies.

With this sector now in the limelight, here are five companies that could reap the benefits from this strategic move.

#1 Avanti Foods

First on the list is Avanti Foods.

Avanti Feeds is an Indian company engaged in the manufacturing of prawn and fish feeds and shrimp processors.

The company's operating segments include shrimp feed, hatchery, and windmills.

It generates maximum revenue from the shrimp feed segment. Geographically, it derives a majority of its revenue from India and also has a presence in the US and the rest of the world.

Its product includes prawn feed, scampi feed, and fish feed.

The scheme encourages establishing new infrastructure, presenting Avanti Feeds with opportunities to expand its operations vertically and secure a larger share of the value chain.

PM Matsya Yojana's focus on inland and coastal aquaculture opens up new market opportunities for Avanti Feeds within India and potentially for exports.

Further, the company is eligible for an incentive of 6% on value-added products at 10% on incremental sales over seven years from FY21-22 to FY26-27, subject to a maximum incentive of Rs 794.4 m with a minimum 5% CAGR in sales.

The company has received an incentive of Rs 68.4 m in FY22.

Going forward, it plans to collaborate with research institutions, aquafarmers, or technology companies to accelerate innovation and expand reach.

For more details, see the Avanti Feeds company fact sheet and quarterly results.

#2 Apex Frozen Foods

Second on the list is Apex Frozen Foods.

The company is an integrated producer and exporter of shelf aquaculture products.

It produces two kinds of shrimps, namely, the Whiteleg shrimp and the Black Tiger Shrimp. The Vannamei shrimp are sold under the brands, include Bay Fresh, Bay Harvest, and BayPremium.

The company supplies ready-to-cook products to a diversified customer base across the developed markets of the United States of America, United Kingdom, and various European countries.

Amid political instability in Ecuador, the world's largest shrimp exporter, and the declaration of a state of emergency, India, as the second-largest exporter stands to benefit.

This bodes well for Indian shrimp exporters, with Q4 being a robust quarter for exports, presenting favourable conditions for Apex's growth.

The emphasis of the scheme on enhancing aquaculture productivity aligns with Apex's business model.

A boost in domestic shrimp production is poised to fortify their supply chain and potentially reduce raw material costs.

The surge in domestic fish consumption is expected to drive demand for Apex's ready-to-cook products.

Access to potential subsidies and loans under PMMSY holds the potential to bolster Apex's infrastructure upgrades, expand processing capacity, and facilitate the adoption of sustainable practices.

Looking forward, the company is diversifying into new markets and enlarging its customer base in existing markets, with a strategic focus on optimizing facility utilisation.

The approach remains cautiously optimistic, taking into account the current market dynamics.

For more details, see the Apex Frozen Foods company fact sheet and quarterly results.

#3 Coastal Corporation

Third on the list is Coastal Corporation.

The company stands among the top ten players in the Shrimp processing and distribution industry worldwide.

It is engaged in processing and exporting of an extensive range of Shrimp products across the high-consuming markets of the USA, Europe, Canada, UAE, Saudi Arabia, Hong Kong, Korea, Japan, and Russia.

In a recent development, Coastal has inked a strategic agreement with Mitsubishi Corporation's Toyo Reizo, Japan, and SPC GFS Co Ltd, Korea, signalling a foray into shrimp exports to Japanese and Korean markets.

The company's expansion into these prominent markets aligns seamlessly with the objectives of the Pradhan Mantri Matsya Sampada Yojana (PMMSY), specifically its goal to double seafood exports.

This strategic move positions Coastal for further growth and an expanded market share in these crucial regions.

The government's emphasis on sustainable practices, as highlighted in PMMSY, echoes Coastal's ongoing commitment to responsible sourcing and processing.

This shared focus not only reinforces their brand image but also enhances their marketability in international arenas, aligning with the global trend towards environmentally conscious practices.

As part of its ongoing expansion plans, Coastal is set to establish a 100% subsidiary, Coastal Biotech Pvt Ltd, dedicated to Ethanol manufacturing in Gajapati, Odisha.

This venture, spanning 30 acres in Village Maringi, Parlakhemundi Tahsil, aligns with the company's diversification efforts.

Looking ahead, Coastal is gearing up to establish a new Shrimp processing facility at Haridamada, Khurdha, Odisha, covering an expansive 4.28 acres.

For more details, see the Coastal Corporation company fact sheet and quarterly results.

#4 Kings Infra

Fourth on the list is Kings Infra.

The company is in aquaculture farming, seafood processing, international trade of marine products, aquaculture consultancy, food-related infrastructure development and venturing into domestic marketing and supply of retail packed marine products.

Its segments include Infrastructure and Aquaculture (Export Facilities).

It is involved in the operations of shrimp hatcheries, grow-out farms, contract farming, feed distribution, and other ancillary services related to aquaculture.

This active involvement uniquely positions it to capitalise on the surge in aquaculture productivity outlined in the Pradhan Mantri Matsya Sampada Yojana (PMMSY).

As the government targets the ambitious goal of doubling seafood exports and establishing integrated aquaparks, Kings Infra's multifaceted expertise across these segments makes it the prime beneficiary.

In September 2023, the company launched SISTA360, a digital platform for sustainable aquaculture solutions.

Furthermore, the Kings Fresh line has been rebranded as Kings Frigo, offering freshly frozen or chilled premium seafood products.

To support expansion and marketing plans, Kings Infra is issuing preferential allotment of equity shares of Rs 170 m and securing a working capital of up to Rs 400 m from Punjab National Bank.

Going forward, the company has announced the launch of Kings Bento, a line of ready-to-eat seafood delicacies inspired by the Japanese concept of Bento.

For more details, see the KINGS Infra company fact sheet and quarterly results.

#5 Waterbase

Last on the list is Waterbase.

Waterbase, a Thapar Group aquaculture company based in Nellore, Andhra Pradesh, is largest Indian player in the aquaculture industry.

The company manufactures and sells Shrimp Feeds and Shrimp Aquaculture for 30 years.

Apart from this, it is also in the business of Shrimp Hatchery. The company's 100% integrated aquaculture EOU consists of a hatchery, a farm, a feed mill and a process plant set up in consultation with Luxe Enterprises Taiwan.

An upswing in fish consumption due to government initiatives like PMMSY will lead to higher demand for shrimp, directly benefiting Waterbase as the largest Indian player.

Further, with government's focus on boosting aquaculture productivity aligns with Waterbase's integrated EOU model, potentially leading to higher shrimp production and market share.

The ambitious vision of doubling seafood exports, a core component of PMMSY, offers Waterbase an avenue to explore international markets, fostering revenue growth and elevating brand recognition.

Going forward, the company plans to invest in expanding its hatchery, farm, and processing facilities to meet the anticipated rise in demand.

For more details, see the Waterbase company fact sheet and quarterly results.

In addition to the top 5 mentioned, below are some notable players contributing significantly to the vibrant seafood industry in India.

Company
Sharat Industries
Zeal Aqua
BVK Industries
Flora Corporation
Vistar Amar
Shantanu Sheo

Conclusion

India has demonstrated remarkable resilience and achievement in the face of challenges, particularly evident in its booming seafood exports to major markets such as the USA.

This success is a testament to the nation's growing prominence in the international seafood trade, driven by a rich array of marine products, a proficient workforce, and modern processing and storage innovations.

Further, according to media reports, the global shrimp industry in 2024 forecasting a 4.8% year-on-year growth in production, surpassing the peak volumes of 2022.

Shrimp feed sales in the first half of FY24 showed a marginal increase, and the industry anticipates stability in sales throughout 2023.

The Ministry of Food Processing's initiatives, including the "Scheme for Integrated Cold Chain and Value Addition Infrastructure," provide substantial support.

Government schemes, incentives, and measures like GST refunds contribute to creating a favourable environment for the growth and sustainability of the seafood industry.

Additionally, the government's PM Matsya Yojana has attracted investments from overseas companies into Indian seafood firms, further fortifying the sector's growth.

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