Chennai-based Oceanaa Group, would soon add 86 value added products to its existing portfolio with a total investment of Rs 200 crore. The company is also planning to enter into marine frozen products business with pan India operations in the year 2011 expecting to double its revenues in the next fiscal.
The company, which is into shrimp hatcheries, farming and marine food, fruits and vegetables processing businesses, is in talks with private equity firms and banks for raising funds, said Joseph Raj, chairman and managing director, Oceanaa Group.
“Almost 86 products would be added to the existing 14 products in our portfolio within January 2011. With this, we plan to entering into the marine frozen products segment and our plans are to set up distribution networks in New Delhi, Mumbai, Bangalore and Hyderabad by the end of 2011,” he said.
The new products would be from fruit purees and concentrates and frozen marine eatables. Out of the total investment Rs 170 crore would be the working capital and the rest would be capex. The product expansion process is in the final stage with an investment of Rs 50 crore.
The company will also increase its retail chain outlet, Fish ‘n’ Fresh from eight to 25 in Chennai by the end of current fiscal, said Raj.
Oceanaa has recently signed a memorandum of understanding (MoU) with the Indian Overseas Bank (IOB) to carry out shrimp culture under contract farming with eligible farmers.
According to the agreement, the company would provide seeds and feeds and technical services to farmers having a minimum of one hectare with licence from Costal Aquaculture Authority while IOB would extend loans for farmers. Oceanaa will buyback the shrimps at the market price at the time of harvest.
With a turnover of Rs 250 crore in the last fiscal, the company is expected to reach Rs 450 crore in 2010-11. The market expansion would enable it to report a turnover of around Rs 1000 crore in the next fiscal, said Raj.
