India - Prawnto To Invest Rs 12 cr. To Expand Prawns Business

Monday, August 31, 2009

Prawnto, which is engaged in the sale of ready-to-eat prawns, has slated an expansion to all major metros in the country from the current 3 kiosks in Bangalore to 150 kiosks nationwide. It is investing Rs 12 crore which is raised through internal accruals. The company certified by Marine Products Export Development Authority (MPEDA) and Central Institute of Brackish Aquaculture (CIBA) has also received an in-principle approval from National Fisheries Development Board to set-up kiosks.

The company is keen to increase its presence through the franchisee format. The investment required for each kiosk is Rs 8 lakh which spans over an area of 72 sq.ft. It is looking at potential locations like malls, urban transport infrastructure stations, food courts and airport terminals. A survey was conducted to ascertain demand for prawn kiosk and was found that there was a need for quality and affordable offering in this space.

According to NFDB, it is estimated that India will consume one lakh tonnes of shrimp by 2012. Most of the shrimp consumed in India is not cultivated but caught from the sea. In fact much of the fresh catch is highly unregulated and undependable and witnesses considerable export rejects. But in the case of Prawnto it has a large approved prawn farm in Nagapattinam in Tamil Nadu and Nellore in Andhra Pradesh set-up by its founder V Balasubramanium.

Since we have access to source quality tiger prawns which has a growing demand because of its nutritious protein content, our business format of kiosks are looked at as profitable ventures, Kenny Ramanand Consulting Partner, Prawnto told F&B News.

The company has a master plan which can be tailor-made. Stringent quality control from farm-to-fork can assure success of the venture. In fact the franchisee partner can mitigate investment risks at a faster pace, he added.

Over the next 18 months, Bangalore will have 20 outlets Chennai: 30, Mumbai: 45 Hyderabad: 25, Northern Capital Region: 15, Indore and Central India: 15. Plans are afoot for a global foray to Australia, Europe, South East Asia and Middle East.

The existing outlets provide fresh prawns in a variety of flavours including crispy squid rings, Mumbai's butter pepper garlic prawns, Kundapur ghee roast prawns, Manchurian prawns, Prawnto rice meal and Texas barbeque prawns to name a few. Other new products in the pipeline are lobster bisque, British fish and chips, Singapore black pepper sauce. Our success is driven by the fresh quality of the prawns, he said.

India is the largest exporter of tiger prawns in the world nearly 95 per cent of the prawns cultivated in India are black tiger prawns. The country exports over 98 per cent of its output making it the third largest exporter in terms of value after China and Thailand.

Source: FnBnews.com