Suguna to enter Retail soon !!!
The Rs 1400-crore Suguna Poultry Farm Ltd is waiting in the wings for market opportunities the emerging retail revolution in the country is likely to offer. “We are yet to tie up with any retail major. We are waiting for the opportunity. When it comes we will be ready for that. We are doing the ground Work”, B.Soundararajan, managing director of the company told FE. Suguna produces over 55 lakh broiler chicken through a large network of contract farmers across the country, except in the Kerala. They are marketed as live birds, dressed whole birds, processed and branded parts. It has launched its branded eggs, ‘Sumegga Pro’, value-added eggs sourced from Suguna’s own high-tech layer farm in Namakkal. The farm has a capacity for 6,000 to 8,000 eggs a day.
For backward integration, the company is implementing a Rs 950-crore long-term programme for setting up hatcheries and feed mills across the country. It will be seeking a $20 million (Rs 100 crore) IFC loan for the projects. IFC has invested Rs 50 crore ($11 million) as equity in Suguna Poultry Farm.
For backward integration, the company is implementing a Rs 950-crore long-term programme for setting up hatcheries and feed mills across the country. It will be seeking a $20 million (Rs 100 crore) IFC loan for the projects. IFC has invested Rs 50 crore ($11 million) as equity in Suguna Poultry Farm.
Works are under way for building four hatcheries, two in Andhra Pradesh and one each in Tamil Nadu and Maharashtra. They would be completed this year. Suguna has a tie-up with Ross Breeders, UK, for the supply of grand parent chicks. The company is also setting up four feed mills, two in Andhra Pradesh, and one each in Karnataka and Maharashtra.
Suguna is also experimenting with contract farming in maize, the main ingredient of chicken feed, in Karnataka. “We have tied up with farmers for 16,000 acre for the cultivation of maize this season. If the experiment is found to be successful we will replicate it in all other maize-growing states in the country”, Soundrarajan said.
Suguna which revolutionised the way chicken is grown and marketed in the country, has established itself in the variety of chicken products market. India is still a live-bird market and Suguna has a very large network of retailing of live birds. It caters to the high-end market, branded restaurant chains from its high-tech processing plant Supreme Suguna Food Co Ltd, a joint venture with Supreme Foods Co Ltd in the Gulf. Small portion is also exported. Suguana is a major supplier to McDonald’s in India. Suguna has ‘Sugies’ brand ready to cook preferred chicken parts for sales through the high-end retail stores. The next stage in chicken marketing would be the introduction of ‘ready-to-eat products like sausages and nuggets. “We will be the leader in this market segment also, when the time comes”, Soundrarajan said.
