The Hindu Business Line : Suguna Poultry set to clock Rs 1,100-cr sales

The integrated poultry producer Suguna Poultry Farm Ltd is poised to cross the Rs 1,000-crore sales turnover this fiscal bucking the bird flu fear-marred market condition faced by the domestic commercial poultry sector.

The company is implementing a Rs 130-crore capital expenditure plan for the current year to strengthen poultry production, feed milling and marketing infrastructure, and move towards higher value-addition.

It is hoping to get its plan to garner 20 per cent of the country's broiler marketshare by 2010 (with a projected turnover of Rs 3,000 crore) back on course.

"Our sales turnover has already crossed Rs 1,000 crore so far this year, and we will be closing the 2005-06 fiscal with a turnover of Rs 1,100 crore," said Mr B. Soundararajan, Managing Director, Suguna Poultry Farm. It closed last year with a sales turnover of Rs 820 crore.

Suguna's commercial broiler production, at present, works out to 40 lakh birds a week against the all-India broiler output of three crore birds.

The company is fully confident of total recovery of broiler market affected by the bird flu fear. "In the last four days, the chicken market has drastically improved and 90 per cent normalcy restored in sales with the average wholesale price already touching Rs 25 per kg," Mr Soundararajan said.

The Suguna MD, who was briefing the presspersons about the quality and hygienic standards adopted by his company in production and supply of commercial broilers into the market, said the poultry consumption took a hit immediately after the bird flu reports, the worst affected being Maharashtra and Kerala.

"The broiler industry suffered loss to the tune of Rs 100 crore during the one week immediately after the February 18 reports on disease outbreak in Maharashtra," he added.

According to Mr Soundararajan, the domestic broiler sale has improved now, but the export of poultry products, including egg exports has come to a standstill.

The company to effectively partake in the Rs 9,000-crore domestic chicken market is putting up a Rs 9-crore ERP solution project supported by Oracle software implemented by IBM that will link its hatcheries, feed-mills, broiler production offices across the country by June.

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Suguna Poultry set to clock Rs 1,100-cr sales