Simran Farms is a single-product company that has spent four decades doing one thing: raising chickens for meat. Incorporated in 1984 and led by a family with multi-generational poultry expertise, the business is built on a recurring philosophy of controlling every input that matters - breeding stock, hatcheries, and especially feed - so that it never has to depend on anyone else for the essentials. That integrated, self-sufficient approach is the thread that runs through everything it does, from the day-old chick to the finished broiler sold into India’s restaurants and wet markets. # Business segments A single integrated engine - broiler production - where the company owns the entire chain from parent breeding birds and hatcheries to in-house feed manufacturing, and sells one product through contract farmers into a protein-hungry market. ## 1. Integrated broiler production: the full chain from breeding stock to finished bird **The company does not just rear chickens; it breeds the parent stock, hatches the eggs, makes the feed, and raises the birds - a closed loop designed to remove dependency on outside suppliers for every critical input.** - **One product, one segment** - the company deals exclusively in broilers (chickens raised for meat) and reports a single business segment under accounting standards, with revenue recognised when birds are dispatched to customers at prevailing market prices or contracted rates. - **Breeding is the starting point** - inventories include Parent Birds (the breeding stock that produces hatching eggs), Commercial Chicks (day-old chicks), and Hatching Eggs, meaning the company owns the genetics and live-bird pipeline rather than buying chicks from third parties. - **Contract farmers do the growing** - the business model pairs company-owned breeding farms and hatcheries with a network of contract poultry farmers who rear the birds, giving the company scale without having to own every shed. - **Sold into India’s eating-out economy** - end customers include the HORECA channel (hotels, restaurants, and cafés), alongside urban and rural consumers buying what remains India’s most affordable animal protein, with demand lifted by rising incomes, quick-service restaurants, and e-commerce platforms. - **Live-bird preference shapes the chain** - Indian consumers have historically preferred live birds over frozen, which limits cold-chain usage and means the company operates in a market where the product moves quickly from farm to plate rather than sitting in freezers. ## 2. In-house feed manufacturing: owning the biggest cost line **Feed is more than 60% of total production cost, so the company makes its own - buying ingredients from a related-party plant next door to its farms, cutting transport costs and controlling the protein ratio that determines bird quality.** - **Feed is the cost battleground** - feed makes up more than 60% of production costs, so even small efficiencies in feed formulation or procurement flow straight through to the bottom line. - **Sourced from a sister plant at the gate** - the company buys poultry feed ingredients from Simran Agritech Private Limited, a related party whose automatic processing plant sits near the company’s farms, saving transport costs and delivering what management describes as finer, higher-protein feed than the open market. - **Self-consumption, not a trading business** - the feed manufacturing setup exists entirely to supply the company’s own birds; it does not deal in commodities or sell feed to third parties, insulating it from direct commodity-price speculation. - **Arm’s-length with a rising ceiling** - the feed-supply transaction with the related party is conducted at arm’s length in the ordinary course of business, with the annual value cap proposed at up to INR 600 crore for FY26, up from INR 400 crore the prior year, reflecting the scale of the operation. # Group structure and partners **A family-controlled listed company with one subsidiary, no foreign exposure, and a web of promoter-owned entities that supply critical inputs and hold the majority of recently issued warrants.** - **One wholly-owned subsidiary** - Puregene Biotech Limited is the only subsidiary, consolidated into the group accounts; the company has no material subsidiaries, joint ventures, or associates, and no foreign operations or foreign exchange exposure. - **Feed comes from within the promoter ecosystem** - the critical feed-ingredient supply relationship is with Simran Agritech Private Limited, a related party, while directors also hold positions in a cluster of other private companies spanning hatcheries, feeds, foods, fisheries, bio-energy, real estate, and pharma. - **Promoter capital raise recently converted** - in October 2024 the company allotted 10.18 lakh warrants at Rs 155 each to nine promoter-group entities and three non-promoters; by March 2026 all warrants were converted into equity, lifting paid-up capital from Rs 3.79 crore to Rs 4.81 crore. - **Banking with national lenders** - the company maintains relationships with ICICI Bank, Union Bank of India, and Kotak Mahindra Bank, with vehicle loans secured against trucks and cars at interest rates between roughly 8% and 9% per annum.