### **Company Overview** The Waterbase Limited (TWL), operating under the brand name Waterbase, is a leading **partially integrated aquaculture company** in India with over **37 years of industry experience** since its incorporation in 1987. The company is part of the diversified **Karam Chand Thapar (KCT) Group**, led by Chairman **Vikramaditya Thapar** and Non-Executive Director **Varun Aditya Thapar**, reflecting strong family leadership and deep sectoral expertise. TWL operates across multiple stages of the **shrimp value chain**, including **hatchery, feed manufacturing, shrimp processing & exports, farm care products, and cold chain logistics**, creating a synergistic and resilient business model. With all core operations located in **Nellore, Andhra Pradesh**, across a 50-acre integrated facility, the company supports a vertically aligned, farmer-centric ecosystem. --- ### **Core Business Segments** TWL operates in two primary verticals: #### 1. **Shrimp Feed & Farm Care** - **Feed Brands**: Bay White-Advanced, Vanamax, Tiger XL, and Maximy. - **Capacity**: 110,000 MTPA (Metric Tonnes Per Annum) - **Manufacturing Standards**: ISO 9001:2015, BAP, and Naturland-certified (India’s only organic shrimp feed-certified mill). - **Key Innovations**: - **Bay White-Advanced**: First successful Indian feed brand for *L. vannamei*, featuring natural super-stimulants for enhanced growth and FCR. - **Tiger XL**: Nutrition-rich, cost-effective feed for Black Tiger shrimp with improved immune response. - **Vanamax**: Scientifically formulated to reduce disease impact through micronutrients. - **Distribution**: Network of **164+ dealer outlets** (down from 184 in 2022 due to strategic refocusing), primarily in coastal regions. - **Revenue Concentration**: Top 10 customers account for ~39% of FY25 sales; ~36% in H1FY26. #### 2. **Shrimp Processing & Exports** - **Processing Plant**: State-of-the-art facility with **5,000 MTPA capacity** (upgraded from 4,000 MTPA in 2022). - **Certifications**: FDA-listed, EU-approved, BAP, HACCP, FSSAI, BRC — enabling access to premium global markets. - **Product Portfolio**: IQF (Individual Quick Frozen), block-frozen, cooked shrimp sold under the **'Prize Catch'** brand. - **Export Markets**: USA, EU, UK, Japan, China, Canada, Mexico, and the Middle East. - **Cold Storage**: 1,300 MT capacity to support processing operations. TWL restarted its processing operations in **Q4 FY22-23** after a 16-year hiatus, exporting **138 containers in FY23-24**, and continues to scale with strategic investments in automation and debottlenecking. --- ### **Strategic Diversification & Revenue Mix** TWL has strategically diversified beyond its core shrimp feed business: - **Farm Care Products**: 'Baylife' brand offering antibiotic-free solutions including probiotics, mineral supplements, disease control agents, and oxygen enhancers. - **Domestic Retail Expansion**: 'Prize Catch' for HoReCa (Hotel, Restaurant, Catering) and urban retail (Mumbai, Delhi, Bangalore, Chennai, Goa). - **R&D Focus**: Development of sustainable, eco-friendly feed formulations and alternative proteins to mitigate fishmeal dependency. As of **FY25 and H1FY26**, **non-feed businesses (hatchery, farm care, processing)** contributed **over 50% of total operating income**, up from ~43% in FY24 — marking a pivotal shift toward a **diversified, integrated revenue model**. --- ### **Key Operations & Capabilities** - **Hatchery**: - Capacity: **250 million post-larvae (PL)/year**, launched in October 2018. - Focus: High-quality *L. vannamei* seed production with advanced biosecurity and water filtration systems. - **R&D Infrastructure**: - One of India’s most advanced dedicated aquaculture R&D centers. - Collaborations with **CIBA (Central Institute of Brackishwater Aquaculture)** and international experts. - Focus on **Feed Conversion Ratio (FCR)**, sustainability, nutrient efficiency, and disease management. - **Farmer Engagement**: - Technical support, training programs, and advisory services for over 3,000 farmers annually. - Model farms in Nellore demonstrate best practices in pond management and precision aquaculture. - **Sustainability**: Antibiotic-free procurement, traceable supply chain, and eco-conscious product development. --- ### **Financial & Capital Structure** - **Strong Balance Sheet**: **Zero long-term debt**, healthy liquidity, and a **CARE credit rating of A- (long-term)** and **A2+ (short-term)** with a stable outlook. - **Revenue**: - **FY24–25 Total Revenue**: ₹2,829.3 crores - **Shrimp Feed**: ₹1,344.2 crores - **Processed Shrimp**: ₹1,339.0 crores - **Profitability Challenges**: - Processing segment incurred losses due to **global oversupply, weak shrimp prices**, and **labor bottlenecks**. - Feed margins pressured by **high raw material costs** (fishmeal, soybean, wheat flour). - **Strategic Shift**: Adoption of a **cash-and-carry model** in feed sales to improve financial discipline and working capital management. --- ### **Management & Governance** - **Leadership**: - **Chairman**: Vikramaditya Thapar (founder, 1987; industry veteran) - **CEO**: Ramakanth V. Akula (professional management team) - **Support Systems**: Backed by the KCT Group's legacy (est. 1929), with experience in coal, real estate, and logistics. - **Human Resources**: ~273 employees; skilled R&D team of postgraduates and specialists. --- ### **Strategic Outlook (FY26 Onwards)** TWL is executing a multi-year strategy focused on: 1. **Growth in Processing & Exports**: - Expanding export markets and adding new customers. - Investing in **automation and efficiency upgrades** to reduce losses and achieve profitability. 2. **Rebuilding the Feed Business**: - Refocusing exclusively on **Andhra Pradesh** (exit from Gujarat and less strategic regions). - Expanding farmer and dealer networks; establishing new depots in Krishna, East & West Godavari. - Launching new, sustainable farm care products and functional feeds. 3. **Domestic Market Expansion**: - Scaling HoReCa and retail presence via **Prize Catch** in Tier 1 cities. 4. **Digital Transformation**: - Leveraging technology for real-time monitoring, precision farming, and digital farmer engagement.