SUGUNA FOODS PRIVATE LIMITED

Date-22/03/2021
ABOUT SUGUNA

 The pioneers in contract farming.

 Among the 10th largest poultry enterprise in the world
 Rs. 8700+ Crore Turnover FY 2019-20
 Operations in 18 Indian states & 1 Union Territory
 517 million chickens produced per annum
 84 hatcheries and 66 feed mills in full-fledged production
 Supplying 2.5 million MT per annum of feed for both captive consumption and
sales
 13,715 MT of processed chicken meat per annum
 Rural entrepreneurship by 42,000 plus farmers in multiple nations
 Procuring grains & soya seeds of about 2 million MT/annum from farmers

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BRANDS

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SUGUNA VALUE ADDED EGGS

• For the first time in India, Suguna Foods Private Limited, India’s largest poultry
enterprise presents a range of premium quality Suguna Value Added Eggs
• Enriched with special nutrients like Omega 3 fatty acids, Selenium, Vitamins and
minerals that not only provide nutritional value but specific functional benefits to
the consumer.

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INSTITUTIONAL SALES CUSTOMERS

Customer Market Customer Market

Abad fisheries Kerala Chatha Foods -
Chandigarh
Max Spar South India Swiss Naturn

Big Basket Bangalore KFC All India

Licious Bangalore Indian Army All India

Tender Cuts Chennai

Lulu International Kerala
Fipola Chennai
Star Bazaar Bangalore METRO Cash &
Bangalore
Carry
Zomato Bangalore

Marriott group of VISTA - Supplier for

South India Mumbai
hotels McDonalds

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VISION: ENERGISING RURAL INDIA

• Focused on developing rural India through the poultry farming industry - commitment to
economic and social development in rural India
• Strong and loyal relationships with the farmers
• A pioneer in the integration of this small industry
• Suguna successfully reduced middlemen in the poultry chain from 14 to 4. Farmers deal only
with the company, and get assured returns
• Provides all the inputs and in return, the farmers get a fixed growing charge which can be
increased through optimizing production cost
• Seeing the impact of Suguna’s initiatives on rural development, chief ministers of other states
such as Andhra Pradesh, West Bengal, Punjab and Jharkhand have approached Suguna to
set up operations in their states
• Empowered over 45,000 farmers and is rewriting the futures of thousands of farmers

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BACKWARD INTEGRATION

• The success of the contract farming model has encouraged Suguna to carry such
innovative approaches to other areas in backward integration, such as corn farming
where Suguna practices ‘Contract Farming’.
• Experts from corn division encourage farmers to grow corn, explain the benefits
and the know-how, and educate them in scientific farming methods to help increase
their yield.
• Offers a buy back guarantee, so that the farmer gets a better price for his crop.
• Procures 4 lakh tons of maize p.a. from farmers in Karnataka alone, which equals
to approximately 2.5 lakh cultivated acres, directly benefiting at least 50,000
farmers.

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 INFRASTRUCTURE:

In poultry integration, infrastructure becomes the backbone of the operations. A well

established infrastructure supports the poultry operations end-to-end, resulting in
quality control and optimized productivity.

The infrastructure at Suguna includes:

• GP and parent farms

• Feed mills
• Environmentally controlled sheds (EC shed)
• Hatcheries
• Modern processing plant
• Large base of commercial contract farms
• R&D center
• Disease diagnostics and feed analytical labs
• Enterprise Resource Planning (ERP) driven information
technology systems

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ENVIRONMENTALLY CONTROLLED SHED (EC SHED)

• Being the first technologically advanced shed of its kind in India, capacity of house
ranges from 24,000 to 55,000 parents.
• The farm is automatically controlled through advanced climate control systems.
Optimal temperatures and humidity levels are programmed into the system and it
maintains the conditions round the clock.

Advantages of an Environmentally Controlled shed:

• Increase in productivity 10 eggs per bird per batch higher.
• 2% Increased hatchability
• Reduced mortality
• Feed savings 3gm per bird per day.
• Fully system controlled with no manual controls, the entire
farm is operated and controlled from a single computer-based
system.
• Records can be stored and retrieved for 5 years

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TARGET GROUP

• Under ‘Energies Rural India’ Suguna is looking for

FARMERS working with farmers through contract farming (At present
network of over 45,000 farmers)

• Expand retail chain through ‘suguna daily fressh’

franchisee.
• Dealership partners are supported to procure
appropriate store equipment, design and architectural
planning of the store.
• Various promotional events and walk-ins will be
organized
• Advertisement support also be provided through
• Wall painting
• Magazine advertisement
• Banner

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SWOT ANALYSIS OF POULTRY SECTOR:

STRENGTHS: WEAKNESSES:
Good growth rate- CAGR is around 5% for eggs Lack of infrastructure facilities for Value
and 7% for poultry addition such as Poultry processing,
warehousing, Cold storage, refrigerated
vehicles
The poultry processing industry in India is
expected to expand at a CAGR of 12% High Maize & Soya price fluctuation leading
between 2018 and 2023 to availability issues of poultry feed at
reasonable prices
Livestock contributes nearly 12% to rural
household monthly Income; Poultry alone can Small farms, losing out on economies of
contribute nearly half of the same Coping up scale and biosecurity
with captive production of Soya bean & maize
Volatility in Broiler prices, Per capita
consumption during Q2 and Q3 come down
Consolidation of integrated operations would due to festivals – Shrawan, Ramzan,
strengthen poultry supply chain Navratri & Ganesh Chathurthi

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 OPPORTUNITY: THREATS:

According to a report by McKinsey and

company, the per capita chicken Avian influenza and other
consumption is set to grow from 3.2 to 9.1 Kg emerging/re-emerging diseases
by 2030, on account of rapidly changing
consumption behavior of individuals.

Untapped potential for the export & value

added chicken products.

*National Action Plan for Egg & Poultry-2022 For Doubling Farmers’
Income by 2022
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BEST PRACTICES

Direct procurement of maize (contract farming)

Completely automated mills - meets the highest hygiene and environmental standards.

Birds are bred in a healthy environment and fed with the most nutritious feed
(Suguna's own feed mills)

Everyday monitoring of the birds and to troubleshoot problems

Assistance at every step and zero risk for farmers

Reduced middlemen, Farmers deal only with the company

Ensuring the food safety during transit (Tracking)

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 THANK YOU FOR YOUR TIME AND CONSIDERATION

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