INTRODUCTION

Brief Profile of the company

The VH group was founded by Late Padmashree Dr. B.V. Rao in 1971, who
was the chairman of the group. Dr. Rao is known as the father of the poultry
industry in India. Under his supervision, Venkateshwara Hatcheries Pvt. Ltd.
was incorporated in Pune.

Later in 1976, Venky’s (India) Ltd. was established as a private ltd. company
for the purpose of manufacturing day-old layer and broiler chicks meant for
North India’s dense poultry markets. The company was earlier known as
Western Hatcheries Ltd.

In December 1998, Venky’s turned into a public limited company. In 1985, the
company entered into the SPF division and in the SPF Chicken embryos
category, this company is India’s only commercial producer. It has diversified
activities related to producing S.P.F eggs chicken, manufacturing of products
related to animal health, poultry breeding & farming, genetic research, and
diagnosis of poultry diseases, etc.

Sectors relevant for the company

Venky’s primary function includes 3 integrated business segments i.e. poultry

and poultry products, solvent extraction, and animal health products. Poultry
contributes to about 55.4% of the total revenue, Oil Seed about 37% of the total
revenue and 7.6% is contributed by Animal Health Segment.

Major sources of Total Revenue for your company

Primary Activities include the following

The main business activities of Venky’s are the manufacturing and sale of
poultry products.  As a part of key business activities, the brand is mainly
engaged in poultry breeding and production. Also, its primary activities include
supplying day-old commercial chicks to poultry farmers, and poultry feed to
farms, producing SPF eggs, chicken and eggs processing broiler and layer
breeding,

Venky’s key activities also include selling nutritional heal and processed
chicken products. It sells grownup commercial broiler, day-old commercial
chicks, De-Oiled Cake for Poultry Feed, Refined oil, etc.

The sale of Venky’s rears chicken is in form of live birds and these are sold in
the form of chicken meat in retail meat shops. Also, fast food chains buy few
birds as per the format given by them. Chicken feed is also produced by the
company for sale.

Secondary Activities include the following

These activities include the manufacturing of pharmaceuticals and medicine.

Medicines for chicken are manufactured by Venky’s as ancillary activities and
for sale and its internal consumption. The manufacturing and selling of
medicines and other health products for birds are done by the company through
its Animal health products business segment.

Reasons for growth or lack of performance in the recent year (FY20/FY21

whichever is applicable)

On 24th March 2020 the Government of India ordered a sudden nationwide

lockdown for 21 days which further got extended till 3rd May 2020 and further
extended to 31st May 2020 to prevent community spread of COVID-19 in India
resulting in disruption of operations of businesses resulting into reduction in
economic activities interruption in production supply chain disruption
unavailability of personnel closure / lock down of production facilities for
temporary period etc. Many of the poultry production facilities were not closed
during lockdown since they are part of essential services. There was temporary
closure in respect of Animal Health Products Unit (from 3rd week of March to
3rd week of May) and Chicken Processing Plant (from 4th week of March to
2nd week of April 2020).The sales turnover of the Company for the year ended
31 March 2021 was Rs.3116.63 crore as compared to Rs.3261.02 crore in the
previous year-down of 4.4%.