Essex Marine
- Essex Marine is coming out with an initial public offering (IPO) of 42,62,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 54 per equity share.
- The issue opens on August 4, 2025 and will close on August 6, 2025.
- The shares will be listed on SME Platform of BSE.
- The share is priced at 5.40 times higher to its face value of Rs 10.
- Book running lead manager to the issue is Khandwala Securities.
- Compliance Officer for the issue is Roshni Gadia.
Profile of the company
Essex Marine is producer of processed fish and shrimp headquartered in Kolkata, West Bengal. Its main processed seafood comprised of different varieties of marine fish and shrimp as well as aquaculture vannamei shrimp. It exports frozen fish and shrimps from India under its brand name “Essex”. It has over 16 years of history in fish and shrimp processing and selling of processed frozen fish and shrimp with varying degrees of value addition to its customers to China, Europe and Israel. Its major customers are in China and Europe, which includes food service distributors and warehouse chains. In addition, it also undertakes job work for different merchant exporters to ensure it is running its processing plant at optimal capacity. The company is a “One Star Export House”.
The company is an integrated player across the processed frozen fish and shrimp supply chain from raw fish and shrimp procurement, processing, and overseas distribution to its customers. It procures raw fish and shrimp primarily from landing centres and aquaculture farmers in the eastern coast of India. The company’s modern processing facility is strategically located at Shankarpur close to Digha, which is one of the biggest landing centres in the eastern coast of India. Its processing unit is situated at Shankarpur Road, Kaluya Sanda, Kuliyata, West Bengal. Shankarpur is within the district of Purba Medinipur wherein the highest quantity of Vannamei aquaculture is produced.
Further, it also operates a dry and cold store centrally located in Kolkata for storing of varieties of frozen food items. its dry and cold store is situated at Udayan Industrial Estate, 3, Pagla Danga Rd, Tangra, Kolkata, West Bengal. The dry and cold store is having a capacity of 1800 MT. Its processing unit is equipped with best-in-class machinery and has received Food Safety System Certification Version 5.1 (FSSC V5.1), BRC Global Standard for Food Safety Certificate and Hazard Analysis and Critical Control Points Certification (HACCP).
Proceed is being used for:
- Expansion of existing peeling capacity at existing processing unit at Shankarpur Road, Kaluya Sanda, Kuliyata, West Bengal
- Setting up of “Ready-to-Cook” Section by adding blanching in the existing process at the existing processing unit at Shankarpur Road, Kaluya Sanda, Kuliyata, West Bengal
- Funding of the working capital requirements of the company
- Repayment/pre-payment, in part, of certain secured borrowing availed by the company
- General corporate purposes
Industry Overview
India is the third-largest fish and aquaculture-producing country. It accounts for 7.96% of the total global fish production. The industry employs more than 28 million people in India. The marine resources of India constitute a coastline of 8,118 km, an Exclusive Economic Zone (EEZ) of 2 million sq. km, and a continental shelf area of 0.53 sq. km. The inland resources include 0.27 million km of rivers and canals, 2.36 million hectares of ponds and tanks, 3.54 million hectares of reservoirs, and 1.2 million hectares of floodplain lakes. The national fish production for the year 2022-23 had been expected to touch or exceed 174 lakh tons which includes 131.13 lakh tons and 42.87 lakh tons from the inland fish and marine sectors, respectively. (provisional figures), an 81% increase when compared to 2013-14.
In 2023-24, the country exported marine products of quantity 17.8 million tons. The value of exports for the same year was $7.38 billion. India mainly exports frozen shrimps, fish, cuttlefish, squids, dried items, and live and chilled items. Out of these, frozen shrimp is the largest exported marine product contributing to more than 40% of the total quantity and about 66.12% of the total export value. In the period 2023-24, frozen fish, cuttlefish, and squid accounted for 21.42%, 3.05%, and 5.25% of the total export value of marine products, respectively. This was a change from the previous period, 2022-23, where they represented 21.23%, 3.16%, and 5.49% of the total quantity exported. During 2023-24 the country exported marine products worth value $7.38 billion, compared to $8.09 billion for the same period last year.
The Indian seafood sector needs to be equipped with the State of art technology and most modern equipment for value addition so as to cop up with the increasing global demand for seafood products in Value added form. In view of the increasing global demand for value added products in convenient form, special emphasis has been given for the promotion of value added products. These most modern equipments are highly capital intensive. Considering the high initial investment involved in setting up of the production line for value added products, MPEDA has been assisting the seafood sector through the Technology Development for Specific Value Added Marine Products (TDSVMP). The financial assistance component aimed at improving the infrastructural facilities for processing and value addition, cold chain development, establishment of handling & packing centers for chilled and dried fishes and to upgrade the skills of the workers on value addition.
Pros and strengths
Strategic location of its processing unit: The company’s modern processing facility is strategically located at Shankarpur close to Digha, which is one of the biggest landing centre in the eastern coast of India. Its processing unit is situated at Shankarpur Road, Kaluya Sanda, Kuliyata, West Bengal. Shankarpur is within the district of Purba Medinipur wherein the highest quantity of Vannamei aquaculture is produced. It employs skilled, semi-skilled and unskilled labour for carrying out various processes for its processing and the availability of quality labour in abundance in West Bengal helps it to maintain its low labour costs. Therefore, the location of its processing unit helps it in cutting the cost of production and enables it to supply quality products with the help of quality raw fish and shrimps and skilled labour.
Quality assurance and quality control of its products: At the core of its operations is an unwavering commitment to quality assurance and control. Its domestic and international customers demand rigorous quality checks at various stages before dispatch, and it has established dedicated quality assurance and control teams to meet these demands. It employs experienced quality control professional in its processing process and quality control process to ensure its product undergo meticulous inspections to prevent rejections and maintain highest quality standard as specified by its customers. In the past, its products have never been rejected by its customers. Its quality control measures extend from thorough checks of raw materials (i.e. raw fish and shrimps) to the final inspection of processed frozen fish and shrimps. An in-house laboratory equipped with automatic/mechanical machines, operated by skilled personnel, supplements these efforts.
Cost effective production and timely fulfilment of orders: Timely fulfilment of the orders is a prerequisite in its industry. It has taken various steps in order to ensure adherence to timely fulfilment of orders and to achieve greater cost efficiency at its existing processing unit. These steps include sourcing of quality raw materials (i.e. raw fish and shrimps), quality control, smooth labour relations, use of an efficient production system and strong relationship with raw material suppliers. These steps enable it to meet large and varied orders.
Risks and concerns
Maximum revenue comes from limited customers: The company currently generates a significant portion of its revenue from a limited number of large customers. The company has garnered 69.36%, 96.02% and 96.98% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. If the company is unable to maintain its relationship with such customers or if there is a reduction in their demand for its products, its business, results of operations and financial condition will be materially and adversely affected. Further, these large customers exercise substantial negotiating leverage with the company, which could adversely impact its results of operations.
Limited experience in ready to cook segment: The company is engaged in processing of raw marine fish and shrimps and as well as aquaculture vannamei shrimp. It is focussed on enhancing its presence in the geographies where it already operates by strengthening relationships with existing customers and introducing new offering “Ready-to-Cook” frozen fish and shrimp in which it has limited experience. The domestic market offers various opportunities in “Ready-to-Cook” frozen fish and shrimp sector which it intends to seize and increase its market reach domestically to explore untapped markets and segments as part of its strategy to mitigate market risk and widen growth prospects. It has limited experience in the ready to cook segment. Due to its limited operating history, the investors may not be able to evaluate its business, future prospects and viability.
Geographical constrain: The company’s operations are concentrated in the state of West Bengal. It sources its raw materials primarily from third parties in West Bengal, Odisha and Andhra Pradesh. Further, its processing facility and cold storage unit, are located in West Bengal. As a result, any local social unrest, natural disaster or breakdown of services and utilities in West Bengal could have material adverse effect on the business, financial position and results of its operations. Its processing unit is subject to operating risks, such as breakdown or failure of equipment, power supply or processes, performance below expected levels of efficiency, obsolescence, natural disasters, industrial accidents and the need to comply with the directives of relevant government authorities.
Outlook
Essex Marine is a seafood processing and exporting company. The company procures, processes, stores, and exports quality fish and aquaculture products, including ribbon fish, eel fish, marine fish, squid, and mackerel, to countries like China, Belgium, and Japan. The company has strong, cordial & long-term relationship with the customers. It also has cost effective production and timely fulfilment of orders. On the concern side, the company derives a significant portion of its revenue from two products. If sales volume or price of such products declines in the future, or if it is unable to sell such products for any reason, its business, financial condition, cash flows and results of operations could be adversely affected. A significant portion of its revenue is generated from its limited number of large customers and if it is unable to maintain its relationship with such customers or if there is a reduction in their demand for its products, its business, results of operations and financial condition will be materially and adversely affected.
The company has come out with an IPO of 42,62,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 54 per equity share to mobilize Rs 23.01 crore. On performance front, the company’s total revenue has increased 94.38% from Rs 1,915.02 lakh in the fiscal year ended March 31, 2024 to Rs 3,722.47 lakh in the fiscal year ended March 31, 2025. Moreover, net profit has increased 155.91% from Rs 182.29 lakh in the fiscal year ended March 31, 2024 to Rs 466.51 lakh in the fiscal year ended March 31, 2025.
The company is producer of processed fish and shrimp headquartered in Kolkata, West Bengal. Its main processed seafood comprised of different varieties of marine fish and shrimp as well as aquaculture vannamei shrimp. Further, its existing peeling capacity is 10.8 tons per day in a shift of 8 hours and it is operating at almost 100% of the peeling capacity i.e. 3,942 MT per annum. The capacity utilisation of its processing unit is dependent upon peeling capacity. At present, in order to improve its capacity utilisation, it has to increase its peeling capacity. Accordingly, it proposes to utilise a sum of Rs 247.93 lakh towards expansion of its peeling capacity from existing 10.8 tons per day to 21.6 tons per day, in a shift of 8 hours. The expansion of its peeling capacity will lead to better capacity utilisation, thereby it will be able to achieve operational and financial growth.
