Ajooni Biotech Projects Significant Growth with New Moringa Cultivation and Cattle Feed Expansion

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Ajooni Biotech Acquires Land for Moringa Cultivation, Projected Turnover to Soar in FY 2025-26

Team FS

11/Jun/2024

Key Points:

Ajooni Biotech projects significant growth in turnover and profitability for FY 2025-26 and FY 2026-27 through expanded Moringa cultivation and cattle feed production.
The company acquires 555,000 square yards of land in Patan District, Gujarat, to enhance its sustainable agriculture initiatives.
Moringa cultivation to improve livestock nutrition, support renewable energy, and provide extensive health benefits.

Ajooni Biotech Limited, a leader in PURE VEG animal health care solutions, has made a strategic acquisition of 555,000 square yards (49,95,000 square feet) of land in the Patan District of Gujarat, near the village of Harij. This move marks a significant milestone in the company's journey towards sustainable agriculture and highlights the numerous benefits of Moringa cultivation. This development is expected to drive substantial growth in the company's turnover and profitability over the next few years, with projections indicating a significant increase in both revenue and profit margins.

Financial Projections

FY 2024-25

For the fiscal year 2024-25, Ajooni Biotech estimates the turnover for PURE VEG Cattle Feed & Supplement Feed to be between ₹100 to ₹125 crores. The projected Profit After Tax (PAT) for this segment is expected to range between ₹5.00 to ₹6.25 crores. These figures set a solid foundation for the company's ambitious growth plans in the following years.

FY 2025-26

Moving into FY 2025-26, the company anticipates a substantial increase in its financial performance:

PURE VEG Cattle Feed & Supplement Feed: Projected turnover is expected to rise to between ₹200 to ₹210 crores, with PAT increasing to between ₹10.00 to ₹12.50 crores.
Moringa: The projected turnover is forecasted to be between ₹150 to ₹200 crores, with PAT anticipated to be between ₹60.00 to ₹80.00 crores.
Total Projections: The overall projected turnover would be between ₹350 to ₹410 crores, and the projected PAT would be between ₹70 to ₹92.50 crores.

FY 2026-27

In FY 2026-27, Ajooni Biotech expects continued growth:

PURE VEG Cattle Feed & Supplement Feed: Turnover is projected to further increase to between ₹250 to ₹270 crores, with PAT rising to between ₹12.50 to ₹13.50 crores.
Moringa: Turnover is forecasted to be between ₹200 to ₹225 crores, with PAT expected to be between ₹80.00 to ₹90.00 crores.
Total Projections: The overall projected turnover would be between ₹450 to ₹495 crores, and the projected PAT would be between ₹92.50 to ₹103.50 crores.

Strategic Expansion

The recent acquisition of land in Patan District is a strategic move aimed at enhancing Ajooni Biotech’s Moringa cultivation. This initiative will allow the company to oversee the entire Moringa cultivation process, from sowing to processing, ensuring complete control over the value chain. This comprehensive approach enables stringent quality control, effective cost management, and product consistency.

Benefits of Moringa Cultivation

Nutritional and Health Benefits

Moringa is renowned for its rich nutritional profile, serving as a potent source of essential vitamins, minerals, and amino acids. Its medicinal properties, including anti-inflammatory, antioxidant, and antimicrobial effects, offer significant therapeutic potential for various health conditions. Moringa leaves are especially noted for stabilizing blood sugar and providing essential amino acids. This makes Moringa a valuable ingredient in the nutraceutical industry.

Environmental and Community Impact

The cultivation of Moringa benefits both local communities and the environment. It addresses nutritional deficiencies, particularly in regions grappling with malnutrition, and promotes overall well-being. The project embodies a holistic approach to sustainable development, meeting nutritional, health, environmental, and economic needs, thereby fostering a better quality of life for communities worldwide.

Renewable Energy Potential

Moringa oil, extracted from the seeds, is a viable feedstock for biodiesel and aviation fuel. Additionally, the bark of the Moringa tree can be utilized to produce activated carbon and has the potential to generate lithium for electric vehicle batteries. These applications support renewable energy initiatives and align with Ajooni Biotech’s commitment to sustainability.

Integration with Cattle Feed Production

Ajooni Biotech is advancing with two key verticals: cattle feed production and Moringa cultivation. By integrating Moringa into their cattle feed formulations, the company aims to enhance the nutritional value of animal feed, thereby improving milch animal nutrition and productivity. This integration not only supports livestock health but also contributes to the reduction of global warming through sustainable agricultural practices.

Quality Control and Cost Efficiency

By managing the entire cultivation process, Ajooni Biotech ensures stringent quality control, cost efficiency, and product consistency. These factors are crucial for the company’s success and its ability to meet the growing demand for high-quality, sustainable animal feed and nutraceutical products.

Leadership Perspectives

Mr. Jasjot Singh, Managing Director & CFO of Ajooni Biotech Limited, expressed his enthusiasm about the recent acquisition and the strategic expansion into Moringa cultivation. He highlighted the project’s alignment with the company’s vision of providing PURE VEG animal health care solutions and supporting renewable energy initiatives. Mr. Singh emphasized the positive impact this endeavor will have on the agricultural community and the broader ecosystem.

Future Prospects

The successful integration of Moringa into Ajooni Biotech’s product offerings is expected to drive significant growth in both the cattle feed and nutraceutical markets. With ongoing research and the commencement of commercial production set for FY 2025-26, the company is well-positioned to capitalize on the numerous benefits of Moringa cultivation.

Conclusion

Ajooni Biotech’s strategic expansion into Moringa cultivation represents a significant milestone in the company’s journey towards sustainable agriculture. The projected financial growth, combined with the numerous benefits of Moringa, positions Ajooni Biotech as a leader in the renewable energy and animal health care sectors. Through continued innovation and a commitment to quality, Ajooni Biotech aims to drive a greener, more sustainable future, benefiting both the environment and local communities.

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