Performance of Aquaculture companies in India with reference to Avanti Feeds Ltd. and Apex Frozen Foods Ltd.

Document Type : Primary Research paper

Authors

1 Research Scholar, Sathyabama Institute of Science and Technology, Chennai, Tamil Nadu, India

2 Dean - Management Studies, Sathyabama Institute of Science and Technology, Chennai, Tamil Nadu, India.

Abstract

The purpose of this paper is to study the performance of aquaculture companies in India with reference to Avanti Feeds Ltd. (AVANTIFEED) and Apex Frozen Foods Ltd. (APEX). The data taken for the study is from January 1, 2018 to December 31, 2020. The factors considered for the study is the daily closing prices and summary statistics is included to find the mean and standard deviation. Linear regression is done between daily closing prices of AVATIFEED and APEX to find the relationship between the variables. The net profit ratio and current asset ratio is taken for the past five years to analyse the profit and liquidity position of the firms. Avanti Feeds Ltd. one of the leading manufacturers of prawn and fish feeds saw a great downfall in the daily prices during June 2018 causing a high standard deviation. The net sales and profits have been increasing from 2017 to 2021 amidst the fluctuation caused by the decline in the exports to other countries. Current ratio is calculated to know the position of currents assets and current liabilities in the firms. The findings of this study show that there is more scope for aquaculture firms to grow in India. Better credit facilities from the banks and allowances like subsidy from the government can help small business to grow in this sector. The risk involved in these firms discourages banks to lend loans to fisheries businesses. The growth of aquaculture industry has provided income to people in rural areas but also caused pollution and genetic degradation of cultured species.

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