From seed to scale

A conversation with Ravi Kumar Yellanki on integrating hatcheries into the larger industry in India

Ravi Kumar Yellanki, Managing Director of Vaisakhi Bio-Resources Pvt Ltd, is well-known for innovating the landscape in post larvae production in India. Today, the company has grown into an integrated operation spanning hatchery, farming and processing. At TARS2025, held on August 20-21 in Chiang Mai, Thailand, Ravi Kumar was one of the business leaders at the Hard Talk session. The day after, we talked about his personal journey in India’s shrimp hatchery business. As President of the All India Shrimp Hatcheries Association (AISHA), we asked him about shaping the future of the segment as well as the whole industry. AISHA will organise the second edition of HATCH India on October 30-31 in Visakhapatnam.

The beginning

You started with an engineering and management background. What made you venture into a shrimp hatchery business?

In 1994, I graduated as an engineer. Back then, shrimp aquaculture in India was just taking off. I initially worked for consultancy firms, Aqua Veritas and GEO Marine Systems, advising on hatchery projects. Around100 to 150 hatcheries were coming up at the time.

In 2001, we started our own consultancy firm. At that time, most of the infrastructure had been completed, and the industry was facing a downturn due to outbreaks of white spot syndrome virus (WSSV).We decided to focus on management contracts with hatcheries. Hatcheries typically employed marine biologists and technicians, contributing to overhead costs. The indoor nursery at the farm in Tuni, Andhra Pradesh.

Our model was simple: hatchery owners did not need to worry about hiring or managing technical staff. We provided technicians and charged only based on the number of post larvae (PL) produced and sold. We charged USD6-7/1,000PLs. This model proved effective, and we managed about five hatcheries under this system. During this time, we learned more on how the hatchery business worked.

How did you transition to owning your own hatchery?

Observing the success of the hatcheries we managed, we considered starting our own but lacked the funds to build a new one. Instead, we leased a small unit and pushed it to its limits, surpassing the annual 40 million PLs produced by bigger hatcheries through more production cycles.

However, we also learned that we need to access multiple markets. PL has no shelf life, and the window to sell is small: 4 days at most. I cannot sell PL8 or PL13,and relying on one region can be risky. We diversified geographically by selling to several regions in India, even with smaller volumes, to ensure stability.

By 1999, we decided to build our own hatchery. Our values were lean and functional, without unnecessary infrastructure. In Visakhapatnam (or Vizag), we constructed our own greenfield hatchery.

Investing to deliver disease-free PL

What expertise did you need to deliver disease-free PL?

Those were the days of farming the black tiger shrimp. Farmers started testing shrimp PL for diseases such as monodon baculovirus (MBV) and WSSV. Most wild broodstocks were infected, and vertical disease transmission was a major concern. We made a move to screen these broodstock and provide disease-free PL.

In India, eyestalk ablation was ineffective for maturation, so most hatcheries used gravid broodstocks. Since we did not want to use gravid broodstocks directly, we brought in Taiwanese experts to focus on maturation. We invested in two PCR machines to conduct disease checks before and after spawning, and we sourced test kits. By controlling everything from quarantine to individual spawning, we ensured high PL quality.

By 2001, our PL was in demand, and our hatchery gained a reputation for consistently producing disease-free PL. That was how we built trust. We learnt from Thailand and elsewhere and developed our own robust system for spawning and screening.

Scaling strategy with vannamei PLs

What was your production capacity and how did you scale further?

Initially, we had one hatchery in Vizag producing about 100 million PL/year. This was a big number back then. In 2004, when I was doing my MBA, I gained a better sense of business and began looking at expansion. We wanted to leverage our strong reputation, but transporting from Vizag to other regions, such as Tamil Nadu or Gujarat, was not viable due to logistics and costs.

So, in 2004, we expanded to Chennai and set up another hatchery. With better connectivity, production was 200 million PL annually. During a visit to Thailand, a small hatchery operator said he produced 500 million PL per year.

“It opened our eyes to the next level of scaling and operational efficiency.”

That visit changed my approach and opened our eyes to the next level of scaling and operational efficiency. We realised the need to think beyond conventional limitations and innovate in business strategy too.

Vannamei shrimp in India

What made it such a game-changer compared to the black tiger shrimp?

By 2009, vannamei changed everything. The PL cycle for vannamei is shorter — only about 20 days compared to the 30 for black tiger shrimp. Farmers could go for higher stocking densities and faster turnarounds. When demand is high and the hatchery performs well, that speed makes
a huge difference in volume and profitability. The Indian government approved vannamei shrimp
farming in 2009. Vaisakhi was among the 12 hatcheries permitted to import the broodstocks. We brought in a Thai technician for maturation, while we continued with Taiwanese expertise for black tiger shrimp. The Vizag hatchery concentrated on black tiger, while the Chennai hatchery focused on vannamei. We were the first hatchery in India to sell vannamei PL on 9th September 2009.

That was a milestone, but was the market ready to switch to vannamei shrimp back then?

Not entirely. From 2009 to 2010, progress was slow. Farmers were hesitant, and we faced some resistance. Then everything changed in 2011 when early mortality syndrome (EMS) hit Vietnam and Thailand. The global shrimp supply fell, prices shot up, and India, being unaffected, suddenly found itself in a sweet spot. The demand for vannamei exploded, farmers made huge profits, and that triggered a massive expansion.

The boom times of 2011How did you take advantage of this new wave?

It was insane in 2011-2012. Ponds were being dug across the country, and hatcheries were coming up fast. We did not want to miss the opportunity. We had to scale up quickly. Building new hatcheries would take a year or more, so we pursued acquisitions. Within 12 to18 months, we acquired three large companies. One of them had one of India’s largest shrimp farms, which we still operate today. This takeover was strategic, since itis nearly impossible to build a 250-acre (101ha) coastal farm from scratch in India. The other two acquisitions were hatcheries.

We also entered into joint ventures, leased or acquired facilities to quickly increase capacity. Around that time, the price of PL in 2011 and 2012 was $4.00/1000 PL. Even at that time, we thought of being vertically integrated, but then continued to focus on this hatchery business. Demand was high, prices were great—₹800/1,000 PL(USD18) at one point.

Success with efficiency, diversification and quality PL

Looking back, what made your model so successful?

Three things: First, operational efficiency – running lean and highly functional hatcheries. Second, market diversification – never relying on one region. Lastly, commitment to quality – disease-free PL was our promise, and we stuck to it with science and rig our. These helped us build credibility, and once that happened, demand followed. Four years ago, we built another greenfield hatchery in Pondicherry and expanded our existing ones. Today, we produce around 5 billion PL per year across eight hatcheries. We have five hatcheries in Vizag and three in Pondicherry. In 2024, we also acquired a new hatchery in Vizag.

Which were your most successful years?

2011 to 2017 were the honeymoon years for the industry in India. Demand for PL was sky-high, prices remained strong, and farmers achieved profitable returns. During this time, all hatcheries—including those offering poorer quality PL—performed well. India benefited from fortunate timing, as new farms were profitable and vannamei shrimp was introduced just as EMS hit Southeast Asia and China’s rising middle class increased imports. These global trends aligned by chance, giving India a major advantage.

Vertical integration

What was the push to be integrated?

We are now a vertically integrated company with hatchery, farming, and processing operations. In 2021,we started our processing operations in a leased facility. We completed a modern processing facility in Vizag that will be fully operational by October 2025. After gaining experience at a small plant near Calcutta over the past four years, we recognise that market fluctuations are part of this cyclical industry. Despite current low shrimp prices, our long-term plans remain unchanged. We are also exploring opportunities in the domestic market. Growing the hatchery business in India is limited. It is afragmented segment. A vertically integrated operation with farming and processing, gives us more scope to increase revenue. With our own farms, we control quality and post-harvest handling, especially maintaining the cold chain, which is critical. Our processing plant is strategically located, just 25kmfrom our farm. In India, such proximity is a dream, and it gives us a huge advantage in ensuring quality. Moving forward, we would like to increase our farming.

Drivers of success

Reflecting on your own success — what would you say made the difference for you?

Success requires perseverance, consistency, and honesty, as well as staying focused, seeking opportunities even during adversity, and always be truthful with yourself and your business. However, I have been fortunate to work with a strong team—most of us (partners, shareholders, and our senior staff) have been together since 2001. This level of trust is essential in our industry. One person alone cannot build all this. We made smart decisions and remained committed, which enabled us to sustain our top position in the hatchery segment for over two decades. Our ongoing evolution and focus have been key to our stability and success.

Raising the bar with quality and disease-tolerant broodstock

As President of AISHA, what are your goals for the hatchery segment in India?

The hatchery is the bridge connecting breeding with farming, so strict protocols are necessary to produce disease-free PL. India already has advanced infrastructure, with 95% of its shrimp hatcheries meeting high standards. At TARS, I brought up how our association can improve broodstock. We can learn from Ecuador’s success with WSSV-tolerant broodstock, which reduces survival rates to 50-60% during outbreaks rather than causing total losses. Asia faces crop losses due to disease and adopting disease-tolerant and SPF-certified broodstock, as practiced in Saudi Arabia, is essential. In any industry, there are bad apples. How can AISHA support self-regulation among hatcheries? It comes down to individual reputation. If a hatchery does not operate responsibly, it will not survive in such a competitive market. Market forces drive better operational practices. On top of that, regulatory bodies like the Coastal Aquaculture Authority (CAA) conduct regular inspections. The hatchery in Srikakulam, Andhra Pradesh, has a production capacity of 1.2 billion post larvae/year. We also invest in awareness programs. HATCH India brings together all 550 hatcheries every two years, and even hatchery technicians are involved and benefit.

What support do you expect from broodstock suppliers to develop shrimp farming in India?

I am not a big fan of BMCs (Broodstock Multiplication Centres) which grow imported parent lines with relatively less biosecurity compared to nucleus breeding centres. Disease can easily slip through. Besides, broodstock imports only cost around INR120 crores, while our shrimp exports are worth INR35,000 crores. That’s less than 1%—so why take the risk? Breeders must work closely with hatcheries and understand India’s field conditions. Currently, they run selection programs mostly in the U.S. and ship broodstock without any local selection. In contrast, entire farms act as genetic testing grounds in Ecuador. They select the best performers across 200,000ha. Selection should occur in India using data to identify appropriate lines with markers. India needs to run sentinel trials and develop region-specific lines, especially ones that show tolerance to EHP. Today, no breeding company has a truly EHP-tolerant line. It is a challenge not just for India, but for all of Asia. SPF has helped us scale, but it is no longer sufficient. There’s a need for improvement. Every breeding company must be willing to test and validate its claims in Indian conditions

What about more engagement with farmers?

The success of aquaculture in India depends on collaboration, communication, and continuous improvement across all sectors—hatcheries, farms, feed, and genetics. At HATCH India 2025, we will have dedicated sessions for farmers. Often, when a farmer has a bad crop, they blame the PL, while the real issue is usually management practices—biosecurity, pond preparation and post larvae handling. We need to stop working in silos. We must start breeding for the success of farmers, formulate feed for the success of farms, and educate farmers so that every part of the value chain contributes to the final outcome.

Use of antibiotics

What are the steps to educate hatcheries around antibiotic usage?

Antibiotics are covered under the National Residue Control Program (NRCP). The Export Inspection Council(EIC) takes hatchery samples and checks for residues. However, the testing method is flawed—especially in PL—because metabolites in the shrimp shell mimic antibiotics, resulting in false positives. Instead, authorities should inspect storerooms for antibiotic inventories. We are also running sensitisation programs to explain that antibiotics no longer work due to antimicrobial resistance(AMR). Even in hatcheries, the bacteria are already resistant. Probiotics and microbiome management are more effective, and we have seen a huge shift to ward probiotics in India’s hatcheries. The goal is to stabilise the microbial ecosystem, not fight it. Maintaining a balanced microbiome means fewer disease outbreaks and better PL quality.

Fostering collaboration Can industry players, including government agencies, collaborate well?

India’s industry cannot match Ecuador’s vertical integration, but we can compete through collaboration. Broodstock suppliers should work with feed mills to create nutritionally compatible diets. Feed companies should partner with farmers to provide support and knowledge. Government and industry bodies, such as CAA and AISHA, should align on practical regulation and training. Only through cross-sector collaboration can we raise standards and stay globally competitive. What is pushing India is competition. Let me give you some numbers:

•Hatcheries: 550 hatcheries with installed capacity of 200billion PLs vs 80–90 billion required.

•Feed mills: 3 million tonnes/year capacity vs 1.5 million tonnes /year demand.

•Processors: More cold storage and freezing capacity than needed. More numbers of cold storage facilities are chasing limited shrimp raw material 

Excess capacity forces players to boost quality or lose business. That is India’s invisible advantage. Whoever gives effective and efficient feed rules the roost.

Is there a need for collaboration in feed formulation?

Feed formulation cannot remain generic anymore. With 65% farms with low saline waters and with different genetic lines requiring different protein levels, it is vital for feed millers to collaborate with breeding companies. Only by aligning formulations with both environment and genetic lines can we achieve consistent growth, better FCR and profitability.

Shift to domestic consumption

Can India realistically build up local consumption?

The Indian shrimp industry should prioritise the domestic market. Farmers can sell fresh shrimp directly to nearby markets while processors should reach out markets in the hinterland with IQF and ready to cook products. Success depends on how our industry brings awareness to the public at large.

Generation Z represents 26% of India’s population and accounts for 47% of consumption. They are health-conscious and prefer high-protein, ready-to-eat and IQF shrimp. We need to educate and promote shrimp consumption directly to this demographic cohort as there is a clear match.

Looking ahead, how do you see India’s role globally?
India has the potential to become the Ecuador of production and the China of consumption. Only about
10% of India’s potential shrimp-farming land is used, while Ecuador has little room to expand. With a large domestic market and a growing middle class, India can scale up sustainably by maintaining low densities and innovating.

So, the future is bright but only if we act now.