Ajooni Biotech Bets on Moringa for Rs 200 Crore Annual Boost

Ajooni Biotech plans to generate Rs 200 crore in annual revenue from commercial Moringa production by FY2025-26. The company expects profit margins of 40-50%. Moringa, known for its animal health benefits, is central to Ajooni's strategy. The firm is also raising funds through a rights issue and expanding its market presence.

PTI | New Delhi | Updated: 27-05-2024 14:06 IST | Created: 27-05-2024 14:06 IST
Ajooni Biotech Bets on Moringa for Rs 200 Crore Annual Boost
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Animal healthcare solutions provider Ajooni Biotech is eying additional Rs 200 crore annual revenue from the commercial production of Moringa by financial year 2025-26.

The leading animal feed manufacturer on Monday unveiled its plans for commercial production of Moringa by the financial year 2025-26.

''We anticipate generating a significant additional annual revenue of Rs 150 crore to Rs 200 crore from our Moringa operations, with projected profit margins of 40-50 per cent from FY2026 onwards,'' he said.

Moringa offers significant benefits for animal well-being and Moringa oil, derived from the seeds, exhibits promising characteristics for use in aviation biofuel.

Recognizing this potential, Ajooni Biotech is actively integrating Moringa into its product development strategy, the statement said.

''The Moringa revolution is upon us, and Ajooni Biotech is at the forefront. Moringa, often referred to as the 'miracle tree', holds immense potential for the future of animal health and sustainable practices,'' Ajooni Biotech Managing Director Jasjot Singh said.

Meanwhile, Ajooni Biotech aims to raise Rs 43.81 crore from the ongoing rights-issue, which began on May 21 and will close on May 31.

Shareholders have the chance to acquire additional shares at a discounted price of Rs 5 per share – over 20 per cent discount to the closing share price on May 18, 2024.

The funds raised through the rights issue will be instrumental in propelling us towards our goal of commencing commercial production of Moringa by FY26, Singh added.

Singh said, ''this focus positions Ajooni Biotech to capture a significant share of the market for natural and sustainable animal healthcare solutions. We have leased a 64,000 sq. yards land in Derabassi of Punjab for cultivating a Moringa nursery and plantation.'' Ajooni Biotech's rights issue signifies a strategic move towards unlocking the immense potential of Moringa in the animal healthcare market, creating a sustainable and profitable future for Ajooni and its stakeholders, the company said.

Looking ahead, Ajooni Biotech has partnered with Unnati Agri-Allied & Marketing Multi State Cooperative Society Limited (UAMMCL), supported by Department of Biotechnology (Government of India) & Punjab State Council for Science & Technology to revolutionize pure-veg cattle feed and Moringa production.

The company has received an export order from Avon Animal Health, Bangladesh to deliver animal health products and educate farmers on their efficacy.

Moreover, the company is working on expanding into the business-to-consumer (B2C) market by appointing over 100 dealers across India.

It plans to surpass 300 distribution touch points and aims to strengthen its market presence and offer innovative products directly to consumers.

In FY24, Ajooni Biotech reported net profit soaring 93.75 per cent to Rs 2.17 crore.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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