The Hindu Business Line : Suguna Poultry to invest Rs 600 cr in expansion

Advertisement

Coimbatore Feb. 26 Suguna Poultry group has chalked up plans to invest Rs 600 crore over the next three years on poultry production expansion for domestic market.

The integrated poultry group, which has already lined up a capital investment of Rs 250 crore for this year, has proposed to expand its poultry farming including setting up new generation hatcheries and production of pellet feeds aimed at achieving higher poultry productivity, Mr B. Soundarajan, Managing Director of Suguna Poultry, has said.

"We are going to focus on expanding the poultry farming for the domestic market till 2010 by replicating our existing business model of contract farming across the country. Our bid to enter into international markets will be only beyond 2010," the Suguna MD told Business Line.

Maize - contract farming

Suguna Poultry which has forayed into layer segment as well by releasing the high productive German layer breed `Lohmann' has as part of improving its supply chain management expanded into direct procurement of maize from farmer groups. Suguna is also trying to replicate contract farming in maize cultivation which will facilitate the company's objective to bring down the poultry feed cost, thereby reducing the overall production cost and at the same time enabling remunerative prices for local maize farmers.

"We have already started procuring maize directly from farmers in Athur and Udumalpet in Tamil Nadu and from Karnataka and these farmers come under registered farmer unions," he added.

The vertically integrated poultry company having contract poultry production centers in 130 locations spread across 10 States in the country currently produces 60 lakh chickens a week, accounting for a 17 per cent share in the country's commercial broiler production. Suguna has set to raise its market share to 25 per cent by 2010 and its income from the present Rs 1,300 crore to Rs 3,000 crore by then.

Suguna is also the first Indian agri business company to get the equity/debt funding from International Finance Corporation (IFC), the private arm of the World Bank, which has extended $30 million including a $11-million equity finance for the Coimbatore based company to enable the latter to develop its capacity building in areas of supply chain management/corporate governance.

More Stories on : Poultry | New Projects

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Commodity exchanges bracing for Budget

Premium offer for Ongole cattle

TN ready to offer loans for packinghouses

Prawn farmers' body to introduce exotic species

Raring to go

For better returns

Sheet rubber declines as buyers resist

46 tea brands fetch more than auction average

CTC tea firm at Coimbatore auctions

Site sought for jute park in Vizag dist

Cracking the tender nut

Bullish prospects

Suguna Poultry to invest Rs 600 cr in expansion

Downtrend continues in pepper futures

Jeera futures turn volatile on rumours