Mukka Proteins Limited has officially completed the acquisition of a 51 percent stake in FABBCO Bio Cycle and Bio Protein Technology Private Limited (FABBCO). This strategic move, announced on 2nd September 2025, marks a significant step in the company’s long-term plan to expand its insect protein business and diversify into sustainable solutions for the animal feed industry.

The company disclosed that it has acquired and subscribed to 4,858 equity shares of FABBCO, each with a face value of Rs. 1,000 and a premium of Rs. 11,250, bringing the total investment to Rs. 59.51 crore. Following this acquisition, FABBCO has become a subsidiary of Mukka Proteins Limited, strengthening the company’s position in the fast-evolving animal feed and bio protein industry.

Strategic Significance of the Acquisition

This acquisition is more than a financial transaction. It represents Mukka Proteins’ strategic vision to expand its footprint in sustainable protein production. The animal feed industry is undergoing rapid transformation, driven by the global demand for alternative protein sources, and insect protein is increasingly seen as a sustainable, high-quality option.

By taking majority control of FABBCO, Mukka Proteins has secured an entry into the insect protein and bio cycle business, which aligns with its core business of animal feed manufacturing. This move demonstrates the company’s forward-looking approach to innovation, sustainability, and diversification.

Financial Details of the Transaction

According to the disclosure filed with both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE):

• 2,436 equity shares were subscribed by Mukka Proteins at a face value of Rs. 1,000 each with a premium of Rs. 11,250.

• 2,422 equity shares were acquired from existing shareholders under the same structure.

• In total, Mukka Proteins invested Rs. 59,51,05,00 (Rupees Five Crore Ninety-Five Lakhs Ten Thousand and Five Hundred Only).

This acquisition has been executed entirely through cash consideration, with no share swaps or alternate forms of payment involved.

FABBCO Bio Cycle and Its Business

FABBCO Bio Cycle and Bio Protein Technology Private Limited, incorporated on 29th June 2023, is a relatively new but promising player in the sector. The company is engaged in the manufacturing of animal feed and the processing of all kinds of waste, offering sustainable and environmentally friendly solutions.

For the financial year 2023-24, FABBCO reported:

• Turnover: Rs. 77.97 lakh

• Loss (PAT): Rs. 53.25 lakh

• Paid-up Capital: Rs. 1.31 crore

• Authorized Capital: Rs. 1.90 crore

Though FABBCO reported a loss in its first financial year, its business model holds strong potential in the rapidly growing insect protein industry, which is expected to play a major role in future food and feed sustainability.

Compliance and Regulatory Transparency

The company has clarified that the acquisition does not fall under related party transactions, and none of the promoter groups or directors have any personal interest in FABBCO. Additionally, the acquisition has been completed in accordance with Schedule III of SEBI Listing Regulations and SEBI’s disclosure requirements under the SEBI circular dated 13 July 2023.

By maintaining full compliance with regulatory frameworks, Mukka Proteins has ensured that the acquisition is transparent, fair, and in the best interests of shareholders.

Impact of the Acquisition on Mukka Proteins

The acquisition of FABBCO is expected to bring multiple strategic benefits to Mukka Proteins, including:

• Strengthening of insect protein business through majority control of a specialized subsidiary.

• Diversification into waste processing and bio protein production, contributing to sustainability goals.

• Improved market positioning by expanding into emerging segments of the animal feed industry.

• Opportunities for innovation and product development, helping the company meet future demand trends.

• Long-term growth potential from integrating FABBCO’s operations with Mukka Proteins’ expertise in feed manufacturing.

This acquisition highlights Mukka Proteins’ commitment to strategic growth and its readiness to invest in next-generation technologies and sustainable food systems.

Broader Industry Implications

The insect protein market is gaining momentum globally, driven by increasing demand for sustainable feed alternatives, reduced environmental impact, and rising concerns over traditional protein sources. By entering this sector early through FABBCO, Mukka Proteins is positioning itself as a pioneer in India’s bio protein industry.

This move also supports India’s broader goals of circular economy and waste management, as FABBCO’s business model focuses on waste processing and conversion into useful animal feed.

Conclusion

The completion of Mukka Proteins’ acquisition of 51 percent stake in FABBCO Bio Cycle and Bio Protein Technology Private Limited for Rs. 59.5 crore marks a transformational step in the company’s journey. By making FABBCO its subsidiary, Mukka Proteins has not only expanded its business portfolio but also taken a strong leap into the future of sustainable protein solutions.

The acquisition underscores Mukka Proteins’ visionary approach, combining financial strength, regulatory compliance, and sustainability-focused growth. Going forward, the company is expected to leverage this acquisition to enhance shareholder value, expand market reach, and establish itself as a leader in innovative feed solutions.

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