SKM Egg Products Approves ₹410 Cr CAPEX Program, Targets 5X Egg Production Hike

SKM Egg Products Approves ₹410 Cr CAPEX Program, Targets 5X Egg Production Hike​

SKM Egg Products Export (India) Limited announced significant strategic and operational updates following the Board of Directors meeting held on May 22, 2026. The Board approved the audited financial results for the quarter and year ended March 31, 2026, alongside a substantial capital expenditure (CAPEX) plan, and the acquisition of a stake in an associate company.

Strategic Expansion and CAPEX Initiatives​

The company has commenced a major CAPEX program estimated at a total cost of around Rs. 410 Cr. This investment is designed to bolster production capacity and improve operational efficiency across three key areas:

1. New Egg Controlled (EC) Sheds: The company plans to expand its egg-laying capacity from 5 Lakhs birds in open houses to 20 Lakhs layer birds using state-of-the-art Environment Controlled (EC) sheds on existing premises, avoiding additional land costs. The expansion is projected to increase current egg production from 13.50 Cr eggs to approximately 62 Cr eggs, representing nearly five times higher output and yielding substantial cost savings compared to contract farm eggs.
2. New Feed Mill: A new feed mill with a capacity of 20 M.ton per hour, capable of running for 20 hours daily, will be established to meet the demands of the increased bird capacity.
3. Bio-Gas Division Expansion: The expansion includes adding two more digestors. This addition will facilitate the production of 6050 kgs/day of Compressed Bio Gas, which can replace approximately 18144 kg/day of coal. The facility is also expected to generate about 11.8 tons/day of nutrient-rich solid organic manure as a valuable byproduct from an overall input of 265 tons per day.

The financing for this CAPEX draw from a Term Loan of Rs. 302 Cr, with the remaining funds sourced from internal accruals. The entire capex investment is eligible for an Interest Subvention Subsidy of 3% on the interest paid on the Term Loan.

Acquisition in Associate Company​

The Board of Directors also approved the acquisition of shares in SKM Universal Marketing Company (India) Private Limited. The acquisition aims for strategic investment and synergy benefits.

Key details of the proposed acquisition are as follows:

Financial Performance Highlights​

The company reported strong performance metrics for the year to date and the fourth quarter. The standalone financial performance metrics show significant year-over-year growth:


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Note: The comprehensive audited financial results for the standalone and consolidated group, including the Balance Sheets and Cash Flow Statements, detail the company's financial position and cash movement.

SKMEGGPROD Stock Price Movement​

Shares of SKM Egg Products Export (India) Limited are edging higher to ₹219 as of 12:10 PM today, rallying up 11.07% (₹21.83) in live trading. The stock activity remains buoyant, supported by high volume as 683,305 shares change hands during the current session.