Hope you are doing well.
In this mail, let's look at the Sea foods industry or more specifically the Shrimps Industry.
There are a few Shrimps industry based listed stocks like Avanti Feeds, APEX Frozen Foods, etc. After a lull of 2-3 years, they seem to be making a comeback.
Below, we have shared our notes about the industry. Hope you find them useful for your own investments or to add the stocks to your watch list:
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Sea food and Shrimps industry
Classification of Sea food -
- Capture - Comprises aquatic species taken from natural water bodies (Sea, lakes, ponds etc.)
- Aquaculture - Comprises species cultivated in aquaculture farms
What are Shrimps?
- Invertebrate marine animal with an elongated body belonging to largest class of crustaceans
- Rich source of iron, protein, selenium, antioxidants, phosphorus, magnesium and vitamin B12
- Found in freshwater lakes and streams, and deep and shallow waters
Types of Shrimps
- White shrimp/Litopenaeus Vannamei/Penaeus Vannamei
- Pink Shrimp
- Brown Shrimp
- Rock Shrimp
- Royal Red Shrimp
- Tiger Shrimp
Difference between Shrimp and Prawn
In UK, Ireland, Australia, and New Zealand, the word “prawn” refers to both shrimp and prawns
Processes Involved in Shrimps Industry -
- Procurement of culture raw male & female shrimps
- adult male & female shrimps are kept together for mating and collection of unhatched eggs
- treat the egg to convert to Nauplii and place the Nauplii in larval tanks
- Farming of young shrimps to adult shrimps
- In Farming Ponds, larvae shrimp/seeds grow to raw shrimps
- Shrimps are fed quality formulated feed
- Processing - Raw shrimps are processed and selected into different categories, such as Peeled, deveined, headon, headless
- Storing of processed shrimps in cold storage till dispatched
Business categories in the shrimps industry -
- Shrimp seed sale - sale of Shrimp Larvae/seeds
- Feed sale - shrimp feed prepared by using ingredients like, soya bean meal, wheat flour, fish meal, etc
- Sale of processed shrimps
- raw fresh
- Value added products, like - ready to eat, ready to cook, heat and serve, etc
Global Shrimps industry -
- Global shrimp market reached a value of US$ 62.8 billion in 2021
- Market is projected to reach US$ 84.2 billion by 2027
- Consumption demand is expected to grow by 4-5%
- US is a major market for consumption of Shrimps
Indian Shrimps industry -
- It reached a value of US$ 6.5 Billion in 2021
- IMARC Group expects the market to reach US$ 12.7 Billion by 2027
Major Shrimp producing Indian states -
- Andhra Pradesh leads the space and accounted for 76% of total volume production in FY 21
- Vannamei accounted for 96% of the total production
Indian Shrimps export -
- India is largest exporter of shrimps in the world and China is 2nd biggest importer of seafood from India of which 46% are frozen shrimps
- India is a small player in value added products (VAP) export market and accounts for less than 1% of global trade
- China, Thailand major exporters of VAP
- Frozen shrimp exports constitute almost 74.31 % of the value of India’s total seafood exports
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Disclaimer: This is not a recommendation to buy/sell any of the stocks mentioned above. I have personal investment in Avanti Feeds.
SEBI Research Analyst Registration No. INH100001690
Research Analyst Details
Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
Details of Associate: Not Applicable
Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.
The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision
This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.
The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.
We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.
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Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – Yes, in Avanti Feeds
Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No
Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No
Whether it or its associates have received any compensation from the subject company in the past twelve months – No
Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No
Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No
Whether the research analyst has served as an officer, director or employee of the subject company – No
Whether the research analyst or research entity has been engaged in market making activity for the subject company – No