The Hindu Business Line : Suguna Poultry to invest Rs 120 cr in N. India

Growth proposals
Plans to acquire a 40 per cent market share in the North at 12-lakh broilers per week.
Looking at exporting value-added processed chicken Japan in 2 months.
In talks with Europe to begin exporting in 2 years.

New Delhi , Aug. 28

Suguna Poultry Farm Ltd, the flagship arm of the Coimbatore-based Suguna Group, is foraying in the northern market with an investment of Rs 120 crore over the next two years.

"The total chicken business in the Punjab and Delhi region is Rs 900-1,000 crore and we are aiming to earn Rs 400 crore in the next two years," said Mr B. Soundararajan, Managing Director, Suguna Group.

While the company plans to enter the Delhi and Haryana markets by the year-end, it has started operations in Punjab.

In the North, 30-lakh broiler chickens are produced per week, and Suguna plans to acquire a 40 per cent market share at 12 lakh broilers per week.

The Indian broiler meat production stands at 1.7 million tonnes, of which Suguna's share is 14.5 per cent at 2,46,000 tonnes.

Marketing strategies

The company plansto spend Rs 15 crore as part of its marketing strategies, out of which about Rs 6-7 crore will be spent in the North.

Suguna also plans to set up two chicken processing units in Karnataka and Maharashtra by 2008, at a cost of Rs 20 crore each.

"The two processing units at Kollar (Karnataka) and Nashik (Maharashtra), which will produce around 3,000 birds per hour, have been located in these regions so as to cater to both the domestic and export market," Mr Soundararajan.

While the Kollar unit will cater to the Chennai and Bangalore markets, Nashik will cater to Mumbai. Both the units will look after production for exports.

The company is looking at exporting value-added processed chicken to Japan in the next two months and is also in talks with Europe to begin exporting in two years.

With a growth rate of 30 per cent per annum, it had clocked a turnover of Rs 1,100 crore last year. It is targeting Rs 1,400 crore in 2006-07 and Rs 3,000 crore by 2010.

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