Fish Oil Producer Expands Capacity with Key Acquisition in Growing Global Market
The stock is down by 15 per cent in 1 year.
Mukka Proteins Limited, a prominent player in India's fish meal and fish oil industry, has announced the acquisition of a 51 per cent stake in GSM Marine Export for Rs 14 crore. This strategic move is aimed at enhancing Mukka Proteins' processing capabilities and securing additional raw material supply chains, thereby reinforcing its market leadership. The acquisition aligns with the company's strategy to meet the increasing global demand for high-quality fish meal and fish oil, essential ingredients in aquafeed, poultry feed, and pet nutrition.
Mohammed Haris, Managing Director & CEO of Mukka Proteins, emphasized that the acquisition is a significant step in their growth strategy, enhancing production capacity and operational efficiency. GSM Marine Export, incorporated in 2021, has shown rapid growth, with revenue increasing from Rs 4.83 crore in FY 2022-23 to Rs 32.35 crore in FY 2023-24. The transaction is expected to be completed by June 30, 2025, subject to customary closing conditions. Mukka Proteins continues to distribute its products domestically and exports to over 20 countries, further solidifying its leadership in the fish meal industry.
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Incorporated in 2003, Mukka Proteins Limited is a leading manufacturer and exporter of fish meal and fish oil in India. The company plays a crucial role in the fish protein industry, supplying essential ingredients for aquafeed, poultry feed, and pet food. Mukka Proteins operates manufacturing facilities across ten locations in Gujarat and Karnataka, with a combined output capacity of 1 lakh metric tonnes. The company exports its products to over a dozen countries, including China, Saudi Arabia, and Vietnam, contributing to 76 per cent of its revenue, while the remaining 24 per cent comes from domestic sales.
In FY24, fish meal accounted for 87 per cent of product sales, followed by fish oil at 10 per cent. Mukka Proteins is recognized for its commitment to quality and safety standards, holding numerous international certifications, including EU certification and AQSIQ listing in China. The company completed its IPO in March 2024, raising Rs 224 crore, and is listed on both BSE and NSE. Mukka Proteins Limited has a market capitalization of over Rs 980 crore. The stock is down by 15 per cent in 1 year. The price-earnings (PE) ratio stands at 17.
Disclaimer: The article is for informational purposes only and not investment advice.