Indian Poultry Alliance (IPA), the poultry subsidiary of Allana Group is setting up two greenfield poultry processing units at Kishanganj in Bihar and at Zaheerabad in Telangana as part of its expansion plans.
The company also plans to partner with an existing player for expanding in the South.
IPA recently acquired the Belagavi-based Kwality Animal Feeds Pvt Ltd and is scaling up the processing capacity.
Moiz Chunawala, Managing Director, IPA, said the company plans to invest about ₹300 crore each in the two greenfield processing units. By the end of 2025, the company expects to have a processing capacity of 1.5 lakh birds per day, he said.
Backward integration
As part of the backward integration, the company will be investing in breeder farms, hatcheries, feed mills and soya extruding units among others. “We will also be partnering with the existing players such as integrators and breeders in these regions,” he added.
“There is a huge demand for good plants and processed chicken slaughtered under hygienic conditions. Basically we have experience with handling proteins. So, we thought that this could be a very good way to forward into proteins into India, because up till now, we have been an export oriented company,” he said.
“Poultry consumption in India has witnessed a robust growth of around 8 per cent for over a decade and it looks very promising growth. Having said that, we are very confident that the growth is going to be consistent and may probably exceed that 8 per cent,” Chunawala added.
Retain brand plans
IPA plans to have a retail brand and the company would be looking at approximately setting up some 4,000 protein stores by 2030 to market the processed poultry products in the fresh chilled format. The company currently has some 8-10 stores, mainly in Belagavi and Goa region, which came through the acquisition of Kwality Feeds. Currently, the company is focussing on the B2B segment targetting the QSRs and food service companies among others. “The quick commerce and online protein retailers are all reaching out to us for getting into their supply chain,” he said. “We may have brands which basically can connect with different people in different regions so we could have regional brands,” he added.
“Today, the new generation is getting more and more, I would say, concerned about quality and all of that, having a hygiene standard. We promised to give a product which is totally world class. We are making investments in the right direction for that,” Chunawala added.
The greenfield units will also have rendering plants to convert the poultry waste into valuable byproducts that can feed into our existing extruded pet food facility. “We are installing new technology and equipment that will be saving at least 30 per cent water,” he said.
Besides catering to the domestic market, the company would also look at the export market. “There is an immense potential to export poultry products as well. We are currently definitely looking at the domestic market but there could be some value-added products or byproducts that get better values in the international market so we evaluate the best mix,” he added.
