Kolkata, India: IFB Agro Industries disclosed challenges in its alcohol business as it grapples with the impact of a 30% excise rise imposed by the West Bengal government, leading to a notable surge in liquor prices. The company also revealed plans for its new fish feed manufacturing facility in Odisha, set to be operational from March 2024, as part of a strategic move to enhance its presence in the fish feed segment.
Despite West Bengal being a significant market for IFB Agro, the decision to establish the fish feed plant in Odisha was driven by certain challenges faced in the former and the anticipation of a more favourable business environment in the latter. The company, however, did not provide specific details regarding the issues encountered.
The liquor business, a major revenue stream for IFB Agro, witnessed a sharp decline in volume due to the substantial 30% increase in Maximum Retail Price (MRP). The company, aiming to fortify its position in the fish feed sector, highlighted its commitment to setting up the manufacturing facility in Balasore, Odisha.
IFB Agro officials declined to comment on the challenges faced in West Bengal. Meanwhile, the marine products division of the company reported positive performance, with a 30% revenue growth in exports and an impressive 87% growth in the domestic food business.
The consolidated net profit for FY23 stood at Rs 49 crore, reflecting a decrease from the Rs 58 crore recorded in the previous fiscal year. IFB Agro’s strategic move to diversify into fish feed production aligns with the company’s efforts to navigate challenges in its liquor business and capitalize on opportunities in the evolving market landscape.
