Hope you are doing well.
India has been a major exporter of processed Shrimps to US; however, the last few years have been bad for the industry with strong competition emerging from Ecuador.
Finally, is there a good news for Shrimps industry stocks listed in India?
Recently, I was reading that US is considering a petition to levy Countervailing (CV) and Anti-Dumping (AD) duties on Ecuador and Indonesia.
If US levies both CV and AD duties on Ecuador, Indian shrimps exporters may regain their lost mojo.
Below, we have shared insights from the Nov’23 presentation of Coastal Corporation Ltd which is a major exporter of processed shrimps and expanding its capacity.
Before that, if you ever find a good stock in an ignored sector with promoter buying from market and increasing his stake, you should sit up and study the company in greater detail…something good might be brewing.
We recently released our new stock recommendation for Alpha/Alpha + members based on the same framework – for details click HERE
Coastal Corporation – Insights from Nov’23 presentation
- Among top 10 players in Shrimp processing and distribution industry worldwide
- 3 manufacturing facilities – 67 MTPD (metric tonnes per day) processing capacity
- 3rd unit – Shrimp processing facility with capacity of 32 MT set up at Kakinada SEZ in 2020
- Captive solar plant – 3.6 MW
- 13 + countries catered – USA, Europe, Canada, UAE, Saudi Arabia, Hong Kong, Korea, Japan & Russia
- Mr. Valsaraj Thottoli – VC and MD – Holds a Bachelors Degree of Technology (in Chemical Engineering)
- Mr. E. Sankar Rao – Chairman – An alumni of IIT Bombay (PhD), IIT Kharagpur (M. Tech), Pondicherry Central University (PGDBA) and Andhra University (B.E. Electrical Engineering)
- Mr. G.V.V. Sathyanarayana – Director Finance and CFO
– Product portfolio
- Headless Shell On (HL) shrimp, Peeled Deveined Tail On (PDTO), Peeled Deveined Tail Off (PD), Cooked Head On, Cooked HL Shrimp, Cooked PDTO Shrimp, Cooked PD Shrimp
- J F Clarke Corporation, Pacific Coral Seafood, Great American Seafood Imports Co., The Choice Group, etc.
- Coastal has entered an agreement with Mitsubishi Corporation’s Toyo Reizo Co. Ltd., Japan and SPC GFS Co Ltd, Korea for exports of shrimps product to Japanese & Korean Markets
– Global Sea food industry
- Per Capita consumption of sea food has increased from 9 kg in 1961 to 20.5 kg in 2017 and is expected to increase to 21.6 kg by 2026
- Rising demand for sea food and relatively static growth in capture sea food – demand and significance for aquaculture is on an uptrend
- India’s share in global sea food – 7.1% in 2016, expected to increase to 7.5% by 2030
– Way ahead – Ongoing expansion
- Greenfield expansion at Odisha with additional capacity of 12 MTPD
- Estimated capex of around Rs 42 crore – Project is funded by Rs 22 crore of promoters contribution, Rs 20 crore of term loan (the proceeds on receipt of capital subsidy of Rs 5 crore will be used to clear term loan)
Disclaimer: This is not a recommendation to buy/sell Coastal Corporation. The securities quoted are for illustration only and are not recommendatory.
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