India’s SKM Egg Products to invest US$48M in poultry expansion
Company plans major capacity increase aimed at lifting egg output and improving operational efficiency across its integrated farming network.
INDIA – The investment arm of SKM Egg Products Export (India) Ltd. has approved a large-scale expansion plan valued at about US$48 million (₹400 crore) to expand its poultry operations and modernise its production infrastructure.
The company said the programme will expand its layer bird capacity by 2 million to reach a total of 2.4 million birds, replacing traditional open sheds with controlled housing systems.
This shift is expected to support higher stocking density and more consistent production conditions as the company moves toward Environment Controlled sheds across its farm network.
Annual egg production is projected to rise from 1.35 billion eggs to about 6.2 billion eggs once the expansion is fully implemented and stabilised.
The company expects the expanded output to improve unit economics and generate estimated cost savings of around US$18 million (₹150 crore) through operational efficiencies.
Project Timeline and Scope
The expansion is scheduled to be completed over 2.5 to 3 years, covering infrastructure upgrades, shed construction, and the integration of supporting facilities.
SKM Egg Products indicated that the programme will also include the development of a feed mill and the installation of bio-gas digesters to support energy use and manage waste.
The total investment of US$48 million (₹400 crore) will be financed through approximately US$36 million (₹300 crore) in bank borrowings and US$12 million (₹100 crore) from internal accruals.
A portion of the borrowing costs is expected to benefit from a 3% government interest subvention, resulting in an effective net interest rate of around 4.5% to 4.7% if the support continues.
Cost Pressures and Risks
The company noted that construction and infrastructure costs have risen by 40% to 50% over the past 2.5 years, which could affect the final project outlay.
It also highlighted that the availability of interest subsidies depends on policy decisions, creating uncertainty around long-term financing costs.
Market observers are expected to track execution timelines, production ramp-up, and the achievement of the projected US$18 million in cost savings as key indicators of project performance.
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