Avanti Feeds Expands Pawprint: Further Investment in Pet Care Venture

On May 29, 2024, Avanti Feeds Limited, through an exchange filing, announced that the Board of Directors had approved the investment of the remaining ₹24.70 Crore in its subsidiary, Avanti Pet Care Pvt. Ltd (APCPL). The said investment is related to the total investment of ₹51.00 Crore, which was approved by the Board on September 27, 2023. This investment will be used to purchase land crucial for Avanti Pet Care Pvt. Ltd.’s operations.

This investment qualifies as a related party transaction due to Avanti Pet Care Pvt. Ltd. subsidiary status under AFL. However, it’s essential to clarify that no acquisition has occurred; instead, Avanti Pet Care Pvt. Ltd. has been newly incorporated under AFL. Operating within the realm of manufacturing and trading, Avanti Pet Care Pvt. Ltd. is poised to venture into the production of pet food and pet care products.

The investment, totalling ₹51.00 Crore, aims to facilitate APCPL’s capital expenditure and working capital needs. This strategic move supports Avanti Pet Care Pvt. Ltd.’s growth trajectory and signifies AFL’s diversification beyond its existing shrimp feed product line.

Governmental or regulatory approvals do not apply to the acquisition process. The completion timeline for the acquisition involves allotting shares, which is anticipated to be finalised within 12 months. The consideration for the acquisition is in cash, with further investments made at a face value of ₹ 10/- per equity share. The total cost of acquisition corresponds to the value of shares acquired at this face value. This investment will result in a 74% shareholding/control in Avanti Pet Care Pvt. Ltd., marking a significant stake in the subsidiary’s operations.

About Avanti Pet Care Pvt. Ltd. (APCPL)

Avanti Pet Care Pvt. Ltd., established on July 18, 2023, operates as a subsidiary of Avanti Feeds Limited. As APCPL gears up to enter the market, it aims to specialise in the manufacturing and trading pet food and pet care products. This will help the company significantly expand into this segment.

On July 19, 2023, Avanti Feeds, known for its shrimp feed manufacturing, unveiled its latest venture, which is the establishment of Avanti Pet Care Private Limited, a subsidiary geared towards diversifying its business portfolio into pet food and pet care product manufacturing and trading.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.