Venkys lines up Rs 15 crore for pet food plant

Venkys Pet, a division of the Venkateshwara Hatcheries group, has plans to enter the pet foods business focusing on the top-end segment of dog and cat foods.

The company will have its first plant for producing pet foods in the premium range in the country.

O P Singh, chief executive officer of the Venkateshwara Hatcheries group, said the plant will come up as an extension of its animal feed plant at a sprawling 75-acre plot at Morwadi, near Pune.

"The plant will have a fully automated 'extrusion' technique-based facility to manufacture high-quality dog and cat food," he said, adding that the company will make an investment of Rs 15 crore for the project, most of which will be spent on the machinery and technology to be sourced from the US.

Additionally, the project includes setting up of a research centre that will concentrate on development of balanced nutrition for companion animals to suit various conditions, Singh said. The annual capacity of the plant is planned at 10,000 tonne.

He said, "We, at the Venkateshwara group, are constantly engaged in R&D (research and development) as well as activities that help us in providing better products and solutions to our customers. The investment in Venkys Pets is a strategic decision aimed at beefing up our product offerings and expanding the business in terms of geographies and product offerings. We have imported the entire machinery from the US."

Singh informed that the pet food production at the plant will be helped by the world's most advanced 'high tempreture - short duration cooking' technology, also known as 'extrusion'. "We are bringing this technology for the first time in India," he said.

"As per the available statistics, there are around 12 million registered dogs and 1.2 million registered cats in India. The current total market size for pet food is about 38,000 tonne a year, and we expect to get at least 30 per cent share of the pie in the first year," Singh said.

There are a few international brands active in the pet foods market in India, but we hope to bank on our access and cost advantage, he said.

"The company will concentrate on feeds that will ensure longevity with the right muscle tone, skin tone and a strong immune response system to withstand diseases and disorders throughout the animals' lives. The base for all of our products will be chicken and egg powder, which will be sourced from our sister division. First, we are introducing a range of pet food products that include 'regal meal' "" for adult dogs, 'regal pups' "" for puppies, and 'grow cat'. Soon we would also be coming up with two special products for 'sick dogs' and 'show dogs'," Singh said.

He said initially the company would utilise its existing retail network of about 29 stock points and around 150 distributors. On the R & D front, it has formed a strategic alliance with Natures Gift of Australia, for its diagnostic and R&D activities in this business.

The company is now looking for support from 13 diagnostic laboratories, which Venkys is planning to set up in Pune, Mumbai, Kolkata, Banglore, Hyderabad, Chennai, Koimbtore, Bhopal and Thiruanantpuram among other cities.