SKM Egg Products Export (India) Limited has informed the Exchange regarding 'Updates'.
SKMEGGPROD · price
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SKM Egg Products announced details of its ₹400 crore poultry farm expansion. The company is adding 20 lakh layer birds, taking total capacity to 24 lakh birds. Egg production will rise from 13.50 crore to 62 crore eggs annually, a 5x increase. The company locked construction contracts to avoid an estimated 40-45% future cost escalation, saving ₹60 crores. A new feed mill will reduce feed costs by 15-20%, while bio-gas expansion adds revenue from CBG sales. No new land was acquired, saving ₹70-80 crores. Total project savings are estimated at ₹150 crores. Funding is split between ₹100 crore internal accruals and ₹300 crore in low-cost bank loans at 4.5-4.7% effective rate (after 3% government interest subvention).
This expansion, when completed in 2.5-3 years, will significantly reduce production costs through captive feed and egg supply, strengthening long-term profitability and operational resilience. The conservative debt-to-equity structure and government subsidy make this financially prudent.