Coastal Corporation, one of India’s leading processor and exporter of shrimps, has embarked upon a Rs. 61 crores expansion-cum- foray into solar energy.
Accordingly, the company is setting up a new processing unit at an estimated investment of Rs. 29 crore, a new pre-processing unit at an investment of Rs. 7 crores and a solar power plant with an estimated capital expenditure of Rs. 25 crores.
All the projects will be commissioned in the current financial year, the company said in a statement.
Coastal Corp. offers shrimps in various forms – raw frozen blocks and in IQF, cooked in frozen blocks and cooked in IQF form as per customers specifications. It exports its products across globe markets – US, Europe, Canada, UAE and Hong Kong. Currently the company has two operational facilities at Marikavalasa and Penugollu Dharmavaram, both in Vizag.
“The expansion would ensure volume growth and better profitability for the company going ahead. We are an established player in export markets and over time, have consistently moved up the value chain in terms of our varied product offerings by processing more and more value added shrimps,” said Managing Director Valsaraj Thottoli .
With the surging consumption of sea food globally due to economic prosperity, there is a perceptible consumer shift towards exotic varieties of sea food as source of protein. Besides expanding population, rising health consciousness with preference for micronutrient rich foods amongst consumers and increasing disposable income are contributing growth factors, he added.
The company posted a consolidated net profit of Rs. 37.92 crores for the year ended March 31, 2019 as against a net profit of Rs 23.88 crores in the previous year ended. For the full year ended March 31, 2019, the net sales were Rs 616 crores as compared to Rs 613.64 crores in the previous year.
On an expanded equity capital of Rs 10.16 crores (post issuance of bonus shares), the full year’s basic EPS was Rs 37.12. The company announced a dividend of Rs 1.50 per share for the FY 2018-19, subject to shareholders’ approval, the statement said.