SKM Egg Products Export (India) Limited has announced a major expansion initiative at its poultry farm with an investment outlay of approximately ₹400 crores. The project, shared with shareholders and analysts during a teleconference on May 22, 2026, aims to significantly enhance production capacity and operational efficiency. The company expects to realize cumulative savings of nearly ₹150 crores in project costs and operational expenses through this strategic move.

Expansion Overview

The company is establishing an additional layer bird capacity of 20 lakh birds, increasing the total capacity in its own poultry farm to 24 lakh layer birds. The expansion involves constructing new Environment Controlled (EC) sheds to replace existing open sheds that are over 16 years old. This upgrade is projected to increase egg production from 13.50 Cr eggs to approximately 62 Cr eggs, representing a five-fold rise.

Cost Efficiency and Savings

Construction activities for the additional capacity are expected to be completed over the next two-and-a-half to three years. By negotiating and locking construction contracts at prevailing rates, the company aims to mitigate a projected 40% to 50% surge in construction costs. This strategy is expected to generate savings of nearly ₹60 crores in construction expenses alone.

Operational Benefits

The expansion includes a new feed mill to cater to the nutritional requirements of the additional birds. This initiative is expected to reduce dependency on external procurement, generating cost efficiencies of 15% to 20% in feed costs. Additionally, the company is expanding its Bio-Gas division with two new digesters, which will lead to savings in coal costs and create new sales revenue from Compressed Bio-Gas (CBG).

All new facilities will be constructed within existing poultry farm premises, avoiding new land acquisitions that would have cost an estimated ₹70 crores to ₹80 crores.

Financial Structure

The project will be funded through a mix of internal accruals and bank borrowings. Approximately ₹100 crores will be funded through internal accruals and bank deposits, while the remaining ₹300 crores is proposed to be financed through bank borrowings.

The company is eligible for an interest subvention of 3% from the Ministry of Animal Husbandry. After accounting for this subsidy, the net effective interest rate on the loans is expected to be around 4.5% to 4.7%. This financial structure allows the company to preserve capital currently earning investment returns of 7.5% to 8%.

The disclosure was signed by Shivkumar, Managing Director, on May 26, 2026.

SKM Egg Products Export (India) Limited has notified the stock exchanges of a forthcoming Board of Directors meeting scheduled for Friday, 22 May 2026. The intimation was issued on 11 May 2026 and addressed to both the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.

Board Meeting Details

The meeting has been convened in compliance with Regulation 29(1)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The primary agenda of the meeting is to consider and take on record the audited financial results for the quarter and year ended 31 March 2026.

The key details of the scheduled board meeting are summarised below:

Regulatory Compliance

The intimation was submitted under reference number SKMEGG/SEC/NSE/BSE/BMN/2026-27 and was digitally signed by SKM Shree Shivkumar, Managing Director of the company, bearing DIN 00002384. The filing reflects the company's adherence to its disclosure obligations under applicable SEBI regulations. SKM Egg Products Export (India) Limited is headquartered at 133, 133/1, Gandhiji Road, Erode – 638 001, Tamil Nadu, India, with its factory located at Erode – Karur Main Road, Cholangapalayam, Erode – 638 154, Tamil Nadu, India.