TUF invests in Indian shrimpfeed operator

Thai Union Frozen Products (TUF) has acquired a 14.99percent stake in India's sec¬ondlargest manufacturer of shrimp feed in a deal worth about Bt40 mil¬lion.

The investment, in a company called Avanti Feed, is part of TUF's plan to boost its market for both shrimp and nonshrimp products.

The company sees India's rapidly growing economy and the increased purchasing power of its people creat¬ing strong poten¬tial for shrimp pro¬duction and nonshrimp products.

Until recently, the Indian government restricted local farmers to raising only blacktiger shrimp but has now decided to allow whiteshrimp farming, which offers the potential to increase India's overall shrimp production and boost its export volume.

Thiraphong said as a result, TUF expected strong growth in shrimp production in India and promising opportunities in the shrimpfeed business. TFM has developed expertise and skills in whiteshrimp feed manufacturing that should benefit Avanti through the transition.

The Thai company expects to expand its sales of canned and frozen seafood products in the Indian market through the new connection. The Indian market is attractive because of its size and the potential for TUF's seafood products to fit easily into the diet of average Indian consumers, Thiraphong said. It is likely that canned seafood prod¬ucts like tuna will be well accepted there.

TFM's shrimpfeed business con¬tributes significantly to TUF's finan¬cial performance. In the first half of the year, TFM's net earnings grew 120 per cent year on year on a sales increase of 5 per cent.