Mukka Proteins announced plans to expand its Bengaluru wet waste conversion facility to a peak capacity of 1,000 tonnes per day (TPD) by December 2027. The company utilizes Black Soldier Fly (Hermetia illucens) bioconversion to process municipal organic waste into insect protein, oil, compost, and humic acid.

The facility currently operates at an intake of 200 TPD. Mukka Proteins expects to reach 400 TPD by March 2027 before scaling gradually to the final target. This expansion complements the company’s existing animal nutrition manufacturing footprint, which includes over 2,91,720 MTPA of conventional marine protein and oil processing capacity across India and Oman.

Processing Efficiency & Output

The bioconversion process achieves an 80% mass reduction of raw organic waste within a 10 to 14-day cycle. The facility transforms urban waste into four primary revenue streams:

• Insect Protein Meal: Contains >50% crude protein for aquafeed and poultry.
• Insect Oil: Rich in medium-chain triglycerides for animal nutrition and oleochemicals.
• Frass Compost: Organic fertilizer enriched with natural chitin.
• Humic Acid: Bio-stimulants for crop root absorption and drought resilience.

Market Context

Bengaluru generates over 4,000 metric tonnes of solid waste daily, with 50% to 60% being biodegradable wet waste. The global insect meal and lipids market is projected to exceed $3.5 billion by 2030. Meanwhile, the global agricultural bio-stimulant market is growing at an 11%+ CAGR, driven by synthetic fertilizer restrictions.

What the Numbers Show

The phased capacity ramp-up from 200 TPD to 1,000 TPD over approximately 18 months indicates a five-fold increase in processing volume. Given the stated 80% mass reduction efficiency, this expansion significantly amplifies the volume of high-value derivatives (protein and oil) relative to the input waste stream, leveraging the company’s existing export-grade certifications.

ESG Integration

The project aligns with carbon credit verification frameworks, including Verra registry standards. By diverting organic streams from anaerobic landfills to aerobic bioconversion, the facility mitigates fugitive greenhouse gas emissions while creating verifiable ESG revenue streams.

Mukka Proteins received in-principle approval from the National Stock Exchange and BSE for a preferential issue of convertible warrants. The transaction targets non-promoter investors.

The company secured regulatory clearance on August 28, 2026, for the allotment of 2,00,00,000 convertible warrants. Each warrant carries a face value of Re. 1 and an issue price of ₹23.50. The total potential raise stands at approximately ₹47 crore upon full subscription.

Deal Structure

The exchange approvals permit Mukka Proteins to proceed with the issue subject to compliance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Companies Act, 2013. The warrants are convertible into equity shares on a one-to-one basis.

Regulatory Conditions

Both exchanges mandated strict adherence to internal controls regarding trading by allottees. The company must obtain undertakings confirming that allottees will not engage in intra-day trading or sell the scrip before the allotment date. Failure to comply with these provisions under Chapter V of the SEBI ICDR Regulations could impact the listing of the shares.

Mukka Proteins is required to file a listing application within twenty days of allotment. The company must also pay applicable fees and submit necessary documents to both exchanges.

What the Numbers Show

The issuance of convertible warrants rather than direct equity suggests a strategic approach to capital raising that may offer investors upside participation while deferring immediate dilution until conversion. The fixed issue price of ₹23.50 sets a clear valuation benchmark for this capital infusion.