SKM Egg Products Export (India) Ltd, an export-oriented egg processing unit in Erode, is hatching new projects and expanding. It is taking over the Hyderabad-based Indo-Dutch Proteins Ltd and increasing the capacity to process 12 lakh eggs daily. Sales are expected to reach Rs 60 crore by next March. With all the international food quality certifications, SKM products are exported to Japan, Europe and South East Asia.
The company was set up by SKM Animal Feeds and Foods (India) Ltd in the associate sector with the Tamil Nadu Industrial Development Corporation (TIDCO) in 1995. It had also the technical and equity collaboration of Belovo, Belgium.
After the initial problems and wiping out the accumulated losses, it turned the corner in 2002-03. The company consolidated itself technically, financially and qualitatively on all fronts and its exports in 2003-04 touched 2253 tonnes fetching Rs 51.17 crore.
SKM Egg Products made a net profit of Rs 3.83 crore and declared a maiden dividend of seven per cent also in 2003-04.
``We are investing Rs 4 crore this year. Of this, Rs 2 crore will be for capacity expansion, Rs 1 crore for laboratory facilities and Rs 1 crore for storage and logistics,'' Mr S K M Maeilanandhan, chairman and managing director, said in Erode. The funds are to be raised externally as dollar and rupee loans.
During the first quarter of the current fiscal, the company exported 731.98 tonnes and the turnover was Rs 16.01 crore agaisnt Rs 7.27 crore in the similar period last year. The profit before tax was Rs 1.53 crore (Rs 0.28 crore).
The chairman said the company has orders worth Rs 50 crore till December and the balance would follow, to raise the exports to Rs 60 crore by March 2005. The promoters hold 57.76 per cent of shares in the company. Tidco has 7.58 per cent, Belovo 4.15 per cent and the public 30.51 per cent.