Egg-cellent exports - Eggs from Tamil Nadu going global
While examining the investments of Tamil Nadu Industrial Development Corporation (TIDCO) for our blog, we noticed a company named SKM Egg Products Export (India) Limited (herein referred to as ‘the Company’). We became curious about the company's export turnover, given that "Export" is part of its name and the fact that it operates in the "Egg" category heightened our interest.
Conclusion
The impressive export turnover, particularly to Russia, Japan, and Europe, along with the successful introduction of new products in various regions, underscores the Company’s strength, especially considering it is based out of Tamilnadu and lacks a wide geographical presence. As the Company continues to explore new markets and strengthen its foothold in existing ones, it sets a strong example of Indian excellence in the global egg products industry.
We were absolutely shocked by the impressive export turnover the company was generating, and we hope you will share our amazement. The scale of their success in the international market is truly remarkable.
The international market for egg products is highly competitive, dominated by giants from the USA, Europe, and China. Despite this, the Company has successfully established a broad network across Russia, Europe, the Far East nations, Southeast Asia, and the Middle East.
The Company has maintained strong relationships with its customers, ensured consistent quality, and adhered to timely delivery schedules. These factors have enabled it to sustain success through repeat orders particularly from major markets such as Russia, Japan, Europe, Indonesia, Thailand, Vietnam, Nigeria, Taiwan, and Dubai.
Additionally, the Company has submitted samples of liquid and powder products to customers in the Philippines, Vietnam, and Malaysia, all of whom have approved them. Liquid shipments to Malaysia and the Philippines began in FY 2023-24. The Company has also expanded its Whole Egg Powder market to Denmark, Peru, and Sweden. Furthermore, during FY 2023-24, the Company resumed shipments to South Korea.
The Company is also entering new markets in Ghana, Uganda, Nigeria, and Israel to expand its geographical presence. Additionally, to increase market share in existing regions, the Company is working to identify more customers in Madagascar, South Korea, and Europe.
Exports of Egg Powder and Egg Liquid accounted for 95% of the Company's total exports. Approximately 60% of the Company’s egg yolk powder variants have been consistently exported to Russia over the past seven years.
Egg exports contributed to 5% of the total exports. Assuming if each exported egg is being priced at INR 20, the Company would have exported approximately 1,62,12,000 eggs [24,31,80,000 / 20].
If we consider a hen to lay 1 egg each day through out the year, a hen would lay 365 eggs in a year. Then to export 1,62,12,000 eggs (as arrived above) the number of hens required to farmed will be 44,417 [1,62,12,000 / 365]
If we consider a poultry farmer to manage a minimum of 200 hens, then the lives of 222 poultry farmers [44,417 / 200] would have been benefitted on just the egg exports.
It is to be noted that to count the number of farmers whose life are being benefitted, we have not considered the Egg Powder & Egg Liquid which also requires egg as a raw material.
Graphical representation of the above data
The international market for egg products is highly competitive, dominated by giants from the USA, Europe, and China. Despite this, the Company has successfully established a broad network across Russia, Europe, the Far East nations, Southeast Asia, and the Middle East.
The Company has maintained strong relationships with its customers, ensured consistent quality, and adhered to timely delivery schedules. These factors have enabled it to sustain success through repeat orders particularly from major markets such as Russia, Japan, Europe, Indonesia, Thailand, Vietnam, Nigeria, Taiwan, and Dubai.
Export turnover of the Company during the FY
2022-23
Russia accounted for
33% of the Company's total export turnover [1,71,98,80,000 /
5,27,39,22,000].
There is another insightful observation about the Company's export to Russia. We will discuss about it in the later part of the blog.
Japan and Europe accounted
for 26% and 15% respectively to the Company's total export turnover.
Exports to the rest
of the world accounted for 27% of the Company’s total export turnover.
Additionally, the Company has submitted samples of liquid and powder products to customers in the Philippines, Vietnam, and Malaysia, all of whom have approved them. Liquid shipments to Malaysia and the Philippines began in FY 2023-24. The Company has also expanded its Whole Egg Powder market to Denmark, Peru, and Sweden. Furthermore, during FY 2023-24, the Company resumed shipments to South Korea.
The Company is also entering new markets in Ghana, Uganda, Nigeria, and Israel to expand its geographical presence. Additionally, to increase market share in existing regions, the Company is working to identify more customers in Madagascar, South Korea, and Europe.
What are the products that were exported by the Company during the FY 2022-23
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Exports of Egg Powder and Egg Liquid accounted for 95% of the Company's total exports. Approximately 60% of the Company’s egg yolk powder variants have been consistently exported to Russia over the past seven years.
Egg exports contributed to 5% of the total exports. Assuming if each exported egg is being priced at INR 20, the Company would have exported approximately 1,62,12,000 eggs [24,31,80,000 / 20].
If we consider a hen to lay 1 egg each day through out the year, a hen would lay 365 eggs in a year. Then to export 1,62,12,000 eggs (as arrived above) the number of hens required to farmed will be 44,417 [1,62,12,000 / 365]
If we consider a poultry farmer to manage a minimum of 200 hens, then the lives of 222 poultry farmers [44,417 / 200] would have been benefitted on just the egg exports.
It is to be noted that to count the number of farmers whose life are being benefitted, we have not considered the Egg Powder & Egg Liquid which also requires egg as a raw material.
Insights on Egg exports to Russia
We expected that exports to Russia would have declined due
to the war between Russia and Ukraine. However, the export values over the past
five years have defied our expectations, showing a remarkable and steep increase.
Exports to Russia from FY 2017-18 to FY 2022-23
Graphical representation of the above data
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The exports to Russia has exceeded thrice during FY 2022-23 compared to FY 2021-22. While this unexpected and steep increase being fueled by disruptions due to the war may not be sustainable in the long term, it's truly exhilarating to witness an Indian company exporting egg and egg products of such significant value to Russia.
We do not have the break-up of exports for the FY 2023-24. However it to be noted that the consolidated revenue of the Company for the FY 2023-24 is higher compared to that of FY 2022-23.
TIDCO a Government of Tamil Nadu Enterprise, which was incorporated in order to identify and promote the establishment of large and medium scale industries within the State of Tamil Nadu in association with the private sector owns 7.58% of the Company.Conclusion
The impressive export turnover, particularly to Russia, Japan, and Europe, along with the successful introduction of new products in various regions, underscores the Company’s strength, especially considering it is based out of Tamilnadu and lacks a wide geographical presence. As the Company continues to explore new markets and strengthen its foothold in existing ones, it sets a strong example of Indian excellence in the global egg products industry.
Reference
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