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INTRODUCTION

In its 25 years of existence, Suguna has gone from strength to strength and has
become a Rs. 2030 crore company that makes it India’s No. 1 broiler
producer. Along the way, Suguna’s pioneering efforts in contract farming
helped create thousands of rural entrepreneurs who share the growth
successfully. "Poultry Integration" introduced and pioneered by Suguna in the
country has energized the livelihoods of farmers in rural India.

Organization structure involves formal and recognizes structure where in each


and every individual and group have a definite relationship with each other,
have a specified area of exist function to perform, authority to mobilize
resources, obligation to act, responsibility for achieving the objective and
accountability for their performance.
It’s an arrangement of activities and assignment of activities and assignment of
personal to their activities in order to achieve the organizational goal.
Organization structure encompasses six major areas within the organization.
They are as follows…..
• Specialization of work.
• Departmentalization.
• Chain of command.
• Span of control.
• Centralization and decentralization.
• Formalization.

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Suguna ranks among the top ten poultry companies worldwide. With operations
in 11 states across India, it offers a range of poultry products and services. The
fully integrated operations cover broiler and layer farming, hatcheries, feed
mills, processing plants, vaccines and exports. Suguna markets live broiler
chicken, value added eggs and frozen chicken. With the intent to provide
consumers with fresh, clean and hygienic packed chicken, Suguna has set up a
chain of modern retail outlets.

Quality products are delivered through stringent processes, ultra-hygienic


rearing methods that are acknowledged worldwide. The ISO certification is
further proof of Suguna's commitment to quality. The group collaborates with
leading international companies to bring the latest technology and practices.

Today, the company’s brand Suguna Chicken is a household name in India.


With its Suguna Daily Fresh outlets, Suguna Home Bites, Suguna Anytime
processed chicken and four varieties of specialty Suguna value added eggs,
Suguna is the undisputed leader in poultry products. Suguna Home Bites being
the latest in its product range is a new category of home meal replacements
(HMR).

Suguna Management

Mr. B. Soundararajan has been the Managing Director of Suguna Poultry


Farm Limited since its inception. His brother, Mr G.B Sundararajan is Joint
Managing Director. Together, they set up Suguna Poultry Farm Limited in 1984

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and grown it into India’s largest poultry enterprise with a turnover of 2030
crores in FY 2007-08.

The entrepreneurs hail from a teacher’s family at Udumalpet, near Coimbatore


and have a strong agricultural background. Mr. Soundararajan started his career
as a trader for egg and poultry feed in the year 1985 with an investment of Rs
5000. In 1986, the business expanded, and the brothers set up a poultry farm
with 200 egg laying birds (layers). In 1988, they set up Suguna's first feed mill
to meet the feed requirements of the neighborhood poultry farmers. In 89-90
however, the poultry prices collapsed due to an oversupply of birds in the local
market. The farmers were unable to meet their payments, so the entrepreneurs
had to realize their dues in kind. They continued to supply feed and medicines
in return for the end product ie eggs. Out of this was born the idea of contract
farming. The two entrepreneurs worked with poultry farmers who had the
infrastructure, by providing the chicks and feed. The farmer reared the birds and
returned them to Suguna in return for a growing charge. Through building
personal relationships with the farmers and winning their trust, Suguna was able
to go from strength to strength, today becoming a world class poultry enterprise
with an annual turnover of Rs 2030 crores.

Mr B.Soundararajan is a visionary who foresaw the potential of growth in


poultry integration (organized contract farming) and practiced it since 1990.
The secret of Suguna’s success lies not only in its innovative model but the
personal relationship which the promoters built with the farmers. Unlike many
other multinational companies which tried unsuccessfully, Suguna saw the
farmers as partners and as the most important stakeholder. The promoters

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Addressed grass root problems firsthand. As Suguna’s activities began to
expand beyond Tamil Nadu, the company began receiving invitations from state
governments who saw the impact of rural development in areas where Suguna
had its operations. From this was born the vision of energizing rural India.

Mr Soundararajan is a patron of technology and innovation. Using European


standards and facilities as benchmarks, he actively applies technology to expand
Suguna’s infrastructure and operations in India. R&D and quality control is a
strong focus at Suguna. True visionary that he is, Mr Soundararajan spearheads
projects and capital expansion to meet future growth requirements and trends.
India’s largest fully automated feedmill at Hoskote and India’s most advanced
Environmentally controlled commercial broiler sheds at Madurai are two
examples of Suguna’s vision.

Coupled with a strong vision is a dedicated professional approach, Mr


Soundararajan ably charted and led Suguna’s growth from 7 crores in 1997 to
over 2000 crores by 08. To manage this astounding growth, Mr Soundararajan
realized the need to bring in professional management. Suguna is a completely
professionally managed company with an able team of Directors and General
Managers who independently head the divisions with the help of a strong team
of professional and motivated workforce. Today, Suguna’s robust structure well
equips it to handle over 15000 farmers, 25000 channel partners and thousands
of employees.

Mr Soundararajan is a dynamic person who actively contributes to the industry


and society. He served as President of the Indian Breeders Association from
2002 to 2007. He was Chairman for National Poultry Committee in 2006-07

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and Vice Chairman for CLFMA from 2005 till date. Mr Soundararajan has been
an active member in the Poultry Advisory Committee to the Ministry of
Agriculture in New Delhi since 2004 and Planning Board Member in
TamilNadu Veterinary University since 2005.

Mr Soundararajan was recognized for his contribution and achievements and


awarded the Best Entrepreneur and influential people by Business today and CII
(Confederation of Indian industry)

Under his able leadership, Suguna Poultry Farm Limited won the National
Productivity Council Awards 7 times successively, since 1994-95 and won the
Best Asian Poultry Company in 2008.

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RESEARCH DESIGN

Definition
According to Claire sleets& others “A research design is a arrangement
for collection & analysis of data in a manner that aims to combine relevance to
the research purpose with economy in procedure”.

OBJECTIVES OF THE STUDY:

1. To understand the organizational structure or hierarchy of the


company

2. To understand the working of the various departments

3. To enable us to gain an insight in to the corporate world.

4. To understand the responsibilities and duties carried out by


each department

5. The study is aimed at understanding how an organization


practically works in the real situation.

6. To study what kind of changes the organization has undergone


in the recent past or have initiated recently.

7. To summarize observation and to draw conclusion whether they


affect in positive or negative way.

8. To know where the suguna poultry stands in this competitive

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world.

9. To view the technological advancement made in the suguna


poultry

SCOPE OF THE STUDY:

1. This report is based on the study conducted at the Indiranagar


Branch, Bangalore

2. It aims at understanding the company’s establishment


organization structure, departments, production techniques, marketing
strategies and the advantages it is having over the competitors.

3. An attempt is made to analyze the company’s performance in


comparison to the theoretical aspects.

4. It aims to understand the skills of the company in the areas like


technological advancement, competitions and in management

LIMITATION OF THE STUDY:

1. Time limit is a major constraint.

2. As per the company rules many information was not disclosed.

3. Finding and conclusions made are based on the superficial


knowledge acquired by the observant.

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4. As the managers are busy in their duty schedules it is not
possible for us to spend more time in interaction and discussion with
them.

5.

SOURCES OF DATA:

1. Primary data

2. Secondary data

PRIMARY DATA:

The data collected for the first time through observation and interview
method. The data is colleted by observing the working of various
departments and also interviewing the managers of all the departments.

SECONDARY DATA:

The data is collected by second hand information. The data is collected


through company manual, product Boucher, company website and
annual report.

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INDUSTRY PROFILE

Suguna Poultry Farm Limited (SUGUNA) is a fully integrated poultry


processor committed to the food service industry. This integration affords us
total quality process control throughout the production process from hatching of
eggs to the retail broiler market. Our mission is to provide the highest quality
product with an unequalled commitment to service. Suguna, as a fully
integrated poultry processor, operates grand parent stock farms, parent stock
farms, and hatchery farms all over India.

The annual growth rate is 12-15% in the broiler industry in India. With the
annual production of 530 million broilers, India is the fifth world’s largest
poultry meat producing country on placements.

Animal protein consumption for Indian people comes mainly from poultry,
goat, beef, and pork. Amongst them, poultry is the top player. The annual per
capita consumption in India is only 630 grams of poultry meat. This is much
lower as compared to the world average of 5.9 kg meat. The National
Committee on Human Nutrition in India has recommended per capita of 10.8 kg
meat .To meet this target , it is estimated that by year 2010, the requirements
will be 9.1 billion kg poultry meat while the estimated production may only be
around 3.04 billion kg poultry meat.

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With rapid urbanization, and increasing demand from the present 250 million
economically strong, consumer market base (which is likely to go up to 350
million by year 2010 ), there is bright future for this industry in India . The

parent, female layer breeding stocks have to increase from 1.41 million to 3.12
million. The broiler breeder female stocks have to grow from 5.80 million to 20
million.

The above statistics clearly shows SUGUNA is having a tremendous scope for
its substantial growth.

The market research report " Vision for Indian Poultry Industry: Current
Scenario and Future Prospects" predicts a relatively strong growth for the egg
and poultry meat industry, in the both urban and rural areas, in the next two
decades. With the continual rise in income, it is estimated to nearly triple by
2020

In line with the rapid growth of the poultry industry, the feed industry has also
been growing very quickly. Feed generally is considered to be the major input
for poultry production and may account for 70 to 80 per cent of the total
production cost. Since poultry feed is composed of several raw materials, the
cost and supply of raw material either produced locally or imported determines
poultry prices.

Poultry feeds are composed of important groups of ingredients which are called
nutrients and consist of maize grains, gluten, blood meal, fish meal and Soya
bean meal. A good poultry feed contains a proper balance of nutrients which
will satisfy the chicken's requirement whether it is a layer or broiler or starter.

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Poultry diets are necessarily to be developed to provide for the optimum
nutrition of the layer and broiler birds at each stage of their development.
Our Industry is of livestock sector, in which, the day old chicks (DOC) are

being raised on high protein feed for a period of five to six weeks. Broiler meat
is the cheapest source of animal protein available in our country. The time
required for raising broiler birds is lesser than that for other big animals. The
consumption of white meat is increasing due to growing health consciousness in
the masses.

Besides, each pellet is complete feed and toxic pathogens and anti-nutritional
factors are destroyed during pellet production. The compounding process will
generate heat and pressure which helps to kill any harmful bacteria in any of the
ingredients. Poultry feed is regularly tested for bacteria which might cause
infection in the birds.

The mill will receive various feed ingredients such as corn and Soya meal via
railway and Lorries and convert it to the perfect nutritional formula to optimize
healthy growth for all of Suguna's chickens. This highly-automated mill will
produce 6,36,000MT of feed per Annum to supply to all poultry broiler contract
farms in the regions of Karnataka and Andhra and to raise their chicks apart
from the parent and grandparent layers being bred in this region.
Our Industry is of livestock sector, in which, the day old chicks (DOC) are
being raised on high protein feed for a period of five to six weeks. Broiler meat
is the cheapest source of animal protein available in our country. The time
required for raising broiler birds is lesser than that for other big animals. The
consumption of white meat is increasing due to growing health consciousness in

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the masses.

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CORPORATE PROFILE

Celebrating a 2000 crore achievement Started in the year 1984, Suguna Poultry
Farm Limited is India’s largest poultry enterprise with a turnover of 2030 crores
in 2007-08. Suguna’s pioneering efforts in contract Farming have helped
thousands of farmers to grow along with the company. Managing Director Mr.
B.Soundararajan and Joint Managing Director Mr. G.B. Sundararajan head the
group.

Suguna currently operates in 11 states working with 15,000 farmers, 25,000


channel partners and 4,800 employees. At the heart of Suguna’s success lies the
vision of energizing rural India.

Energising Rural India

Suguna Poultry Farm Limited has drafted a new success saga with a vision to
strengthen the backbone of the Indian economy. The organization has focused
on reaching out to rural India through its innovative and sustainable business
model, reaching out to the rural segment of the poultry farming community.
Reaching out to embrace new ideologies that will help Suguna set trends in our
areas of expertise. At Suguna, we firmly believe that in reaching out, we will be
able to nurture a more holistic growth.

Suguna's Core business activities

Suguna imports the grandparent birds from Ross in UK, best known for their
tenderness and taste and from Lohmann in Germany, the best in layers. State-
of-the-art hatcheries, quality feed and best farm management practices ensure

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the highest quality broiler chicken. Suguna is the first poultry company to
implement end to end ERP system for poultry business management. Suguna
has commissioned own feed mills and soya plants as part of its backward
integration in the poultry value chain. Extending its forward integration is
Suguna’s entry into retail through its Daily Fressh outlets. Suguna is well
known for its range of high quality products that include chicken, value added
eggs and naturally processed frozen and chilled chicken.

Suguna in Broiler Production

Suguna has become the household name in the broiler chicken industry. Suguna
stands first in broiler production in India (and 4th in the world by volume).
Suguna Poultry Farm revolutionized the Indian poultry industry through
contract farming. Suguna Chicken is a highly trusted brand name offering high
quality, nutritious, hygienic and affordable broiler chicken.

Suguna in Layers industry

Suguna offers day old Layer chicks and pullets to Indian farmers who prefer
more number of saleable eggs and layers that are highly efficient in gram feed
per egg, and adaptable to different environmental conditions with high
livability. The chick is a white-egg layer and as such highly suitable for cages,
deep litter, aviary and free-range management.

Global Partners of Suguna

Suguna partnered with Ross of UK for importing broiler grandparent stock and
Lohmann of Germany for Layer grandparents. Suguna imports day old

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grandparent and parentstock chicks from Ross, a subsidiary of Aviagen for
broiler. Lohmann is today the world's Number one Primary Breeding Company
for Layers under the umbrella of Erich Wesjohann Group of Companies
headquartered in Cuxhaven, German.

Suguna anytime frozen chicken

Suguna exports frozen chicken products, under the Suguna Anytime brand to
Middle East, where they are well received and have a good presence. Sugie's
products are processed in a modern processing plant near Udumalpet which is
HACCP certified and abides the international standards based on Total Quality
Management (TQM) system with strict compliance to hygiene and inspection
requirements and adopting the traditional halal technique. Suguna Anytime
frozen chicken is also available domestically in all metros.

Suguna Daily Fressh

Suguna Daily Fressh is Suguna’s latest venture comprising a chain of high-


quality retail stores which retail fresh hygienic ready to cook chicken and as
well as speciality eggs, mutton and seafood. These stores provide a novel and
hygienic buying experience for our discerning customers. One can get choice
portions of fresh chicken and also ready-to-cook items at these outlets, which
incorporate hygienic storage and packing. Plans are on to open 175 stores
across India by the coming year.

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Suguna Branded eggs

Suguna offers a range of value added eggs fortified with special natural
nutrients, catering to the nutritional and health requirements of various groups
of people. Suguna Heart enriched with Omega 3 fatty acids and Vitamin E has
up to 50% lower cholesterol than ordinary table eggs and helps maintain a
healthy heart. Suguna Active, enriched with DHA, Organic Selenium, and
Vitamin E is particularly good for children and teens as DHA assists in brain
development and improving eyesight. Vitamin E is a powerful antioxidant and
is good for the skin and has anti ageing properties. Omega 3 fatty acids cannot
be produced by the body and must be obtained from the diet. Organic Selenium
is good for maintaining overall health and preventing certain types of diseases
and is more efficiently absorbed by the body than inorganic sources. Suguna
Pro is enriched with protein and vitamins (Lutein and Zeanxthinin). The high
protein in Suguna Pro helps build and repair the cells in muscles and other body
tissues. Vitamin A is helpful for healthy skin and good vision. Additionally
Lutein an important pigment in Suguna pro prevents macular degeneration and
cataract of eyes. Calcium & Phosphorus helps in formation of bones and teeth.
Suguna Shakti shares similar nutrients as Suguna Pro and is of smaller size.

Suguna has enjoyed a strong business growth through its innovative business
model and unstinted efforts at giving high quality products and ensuring value
for the customer. The changing demographic profile of India, increasing
urbanization and the empowerment of rural India will add millions of new
families to the economic mainstream. The company is well positioned to
service this ever growing demand for poultry products in India and the world.

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Suguna Home Bites – Home Meal Replacement

Suguna has recently launched a new category of Home Meal Replacement


foods under the brand name Suguna Home Bites. Starting with a range of 8 heat
n’ eat entrée and main meals, Suguna will soon introduce more in this range as
well as a range of dried ready to eat chicken snacks, sausages and salamis.

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SUGUNA’S NETWORK

• CHANDIGARH

• DELHI

• LUCKNOW

• JAIPUR

• KOLKATA

• CUTTACK

• RAJAMUNDRY

• NAGPUR

• ANAND

• NASIK

• PUNE

• SECANDERABAD

• VELLORE

• BANGALURU

• COIMBATORE

• MADURAI

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• UDUMALPET

Since the incorporation, Suguna Poultry Group rapidly grew into a corporate
entity that has few parallels in history. The success of Suguna is a glorious
testimony of the power of human visionary zeal, innovation, determination and
co-operation. “Poultry Integration” is a concept introduced and achieved by
Suguna. Suguna has been successful in the integration of tens of thousands of
farmers, thereby enhancing their life-styles. Suguna has steadily and positively
grown on its core ideals of Total Quality Management, constant Innovation,
impeccable hygiene and understanding Customer needs.

Suguna Poultry Group considers as its core strength, its wealth of human
endeavour and excellence. The group has a wealth of people truly dedicated to
its core ideals and customers. This is amply proven by the fact that an over
whelming majority of the work force has been with the company for years
together. Suguna has also made tens of thousands of direct and indirect
employments. And this has made all the difference.

Suguna has a highly advanced R&D centre. The centre possesses advanced
state-of-the-art laboratories, R&D equipments, facilities and other necessary
supporting infrastructure.

The centre is engaged in continuous innovation in Feed Technology, Trial


Farms and Quality enhancement of the products. The centre also regularly
develops various methods and programs to enhance breeders and farmer's
technical performance. Suguna’s Research and Development activities focus on
enriching nutritional values contributes to birds’ growth and generates a long-
term profitability for its customers.

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Apart from its business, Suguna creates awareness amongst people about social
issues like Tree Plantation. Suguna has been responsible for planting tens of
thousands of trees across the country. This apart, Suguna conducts social
projects on Eye Camp, Blood donation, Limp donation etc

OBJECTIVES OF SUGUNA’S

• Energizing rural India through a business process that creates and


sustains innovation and strategy, by continuously adding value and care
to its stakeholders with a style of management that will be exemplary to
the corporate world.

• In business, there is always a better way. And the first step towards
achieving that is to have a dream. For Suguna, the dream is to shape the
future of India.
• Any dream for India would be incomplete without a powerful rural
revival. This belief has driven Suguna to invest heavily in rural India and
set its sights on a powerful economic and social transformation.
• Suguna has focused on developing rural India through the poultry
farming industry. A pioneer in the integration of this hitherto small
industry,
• Suguna’s Fresh concepts such as contract farming have made individual
farmers an integral part of its family.
• A holistic approach backed by technology, research and best practices,
has revolutionized this industry empowering farmers across the country
with wealth and prosperity.

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• With a commitment to economic and social development in rural India as
its core value, Suguna has today empowered over 15,000 farmers and is
rewriting the futures of thousands of farmers and entrepreneurs. Suguna
is modernizing the industry, creating employment, stepping up exports
and has in store a bright future for over one million rural households in
India.
• Suguna is Asia’s first poultry organization to have been accredited the
ISO 9001: 2000 Certification. Suguna Poultry Group is the proud six
time recipient of the National Productivity Awards in a decade for
“excellence in Domestic Broiler Birds Marketing, Hatching, Eggs
Export, Processed Meat Export, Quality Consciousness, Research &
Development and Continual Development of Value Added Products”.

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MILESTONE:-

1984 Suguna Group was founded


1991 Introduced new Concept of contract farming in India
1992 First Hatchery
1993 First Breeder Operation

1998 Semi Automatic Meat Processing Unit with Cold Storage

1999 Fully Automatic, Micro Processor Controlled Feed Mill

2000 Inclusion of Grand Parents


2001 Expansion of Operations into other states
2004 Soya Unit Operation in Nagpur
2006 Successful implementation of Oracle ERP systems
2007 Layer launch
2007 Asian Livestock Industry Award
2007 Daily Fressh and Suguna value added eggs launch
2008 Convenience foods launch

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LEADERSHIP

Suguna Poultry Farm Limited is the brainchild of Mr. B. Soundararajan,


Managing Director and Mr. G.B.Sundararajan, Joint Managing Director, two
entrepreneurs and visionaries in the poultry industry. The brothers foresaw the
potential to grow the Indian Poultry Industry through Integration now known as
Contract Farming.

A concept successful in many developed countries such as USA and Europe,


contract farming failed in India until it was re-introduced by the brothers. Under
their able leadership this industry has an enviable position in the business
circles today.

The two brothers, hailing from a village and born in a teacher’s family have
reached the business zenith with a zeal to excel. Their management has made
amark in the corporate arena by continuously improving industry standards and
professionalism.

Today, with a turnover of Rs. 2030 cores, Suguna holds the number one
position in the Indian broiler industry and ranks among the top ten poultry
companies in the world. Suguna's leadership can be seen in not just market
share but also in innovation, research and development, and even technology.
All thanks to professional management practices backed by the industry's best
Human Resources, IT Systems, and advanced processes.

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CREATING VALUES

Suguna believes in creating value for its stakeholders in everything that it does.
Be it farmers, customers, traders, employees, suppliers, partners or other
institutions, Suguna ensures value addition in every transaction and investment.
Suguna makes a difference through processes, technology and people. Quality
and innovation are core values at Suguna. And Suguna creates value in several
ways, benefiting countless number of people, particularly farmers, traders,
customers and employees.

Pioneering efforts by Suguna in contract farming has changed the landscape of


the Indian poultry industry, and has transformed the lives of lakhs of farmers
and people across Rural India. Through poultry integration, Suguna provides
livelihood and assured income to thousands of farmers and also provides
indirect employment, assuring a better future to lakhs of rural households.

Suguna’s success lies in building strong and loyal relationships with the farmers
who are more than simply an extension of our value chain. We see them
as partners, and we believe strongly in our vision of Energising Rural
India. Through the success of contract farming, Suguna has built up a
strong and innovative business model which cannot be replicated easily.

Seeing the impact of Suguna’s initiatives on rural development, Chief Ministers


of other States such as Andhra Pradesh, West Bengal, Punjab and
Jharkand have approached Suguna to set up operations in their states.

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Suguna successfully reduced middlemen in the poultry chain from 14 to 4.
Farmers deal only with the company, and get assured returns. Suguna
provides

them all the inputs and in return, the farmers get a fixed growing charge which
can be increased through optimizing production cost.

Suguna also bears the production and market risks, thereby protecting the
livelihoods of farmers. Regardless of the market price, the farmers still
get the assured growing charge, and incentives.

Suguna provides a lot of project guidance and assistance with getting finance,
and provide farmers with continuous technical training in scientific
poultry management practices. In some areas, farmers approach Suguna
with only land, and we help them to put up a poultry farm, and then place
our chicks and train the farmers to manage the birds. Our line supervisors
visit the farms every day to monitor the birds and to troubleshoot
problems.To service this massive base of 15000 farms, Suguna has
invested in highly sophisticated technology and infrastructure. With state
of the art hatcheries, and an advanced R&D Centre, feed mills,
veterinarians, scientists, and professionals, farmers are assured of the best
quality chicks, feed and professional care. Importantly, Suguna’s
scientists and employees train the farmers in GMP (Good Management
Practices) too. Through all these, Suguna brings tremendous value to the
farmers who may otherwise be unable to have access to all these on their
own.

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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 ‘Contact Farming’. Experts from
our 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. Suguna offers a buy back guarantee, so that the
farmer gets a better price

for his crop. This way, Suguna 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. Through this direct
procurement, Suguna also assures farmers fair prices and enormous
savings by way of transparent transactions and quick payments.

Suguna celebrates 25 years of good health and great taste. Suguna’s focus on
creating nutrition-enriched products brings to the society, healthy and
wholesome chicken adhering to international standards, and yet, affordably
priced. Not only just this, Suguna has also launched value added products that
include value added eggs, hygienic chicken retail stores, frozen chicken and
ready to eat heat and eat home meal replacements. All backed by the Suguna
promise of quality and purity.

The stringent quality controls mean that every single product manufactured by
Suguna adheres to international standards assuring you 100% healthy and
hygienic chicken products. A strategic forward integration into retail and foods
through value added products means quality products that reach the consumer's

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table with the added convenience of easy preparation and less cooking time.
Giving the consumer better value for money.

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CORPORATE SOCIAL RESPONCIBILITY

Ever since inception, Suguna has made social responsibility initiatives a major
part of its core values. The social responsibility initiatives today reflect
conscious efforts to transform the economic and social development of rural
India.

Energising rural India has been the vision that accompanied Suguna's growth.
Every business activity undertaken has been and will always be linked to this
vision. Suguna’s employees share this vision and contribute towards it actively.
Another focus of Suguna has been re-planting lakhs of trees across the country
to increase the green cover and help in soil restoration. Suguna has donated
over 25 lakh saplings to governmental, non-governmental, and voluntary
organisations, schools, colleges and general public.

Taking forward the core values, a host of initiatives have been put into action.
From instituting rewards to school toppers as part of educational programs, to
providing aid for government schools and hospitals, Suguna is undertaking a
wide range of socio-economic, environmental, educational and health
initiatives.

Improving the quality of life of employees, their families, as well as the local
community and society at large is a promise that Suguna aims to fulfill in the
long run. Since health is an important issue, Suguna believes in initiatives such
as conducting motivational programs for children in orphanages, eye check-up
camps, blood donation camps, and artificial limb donation.

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Corporate Mission

“With our sales efforts focused squarely on the food

service industry, our mission is to provide the highest

quality product with an unequaled commitment to

service. Our daily goal is to provide our customers with

a confidence that our entire staff is working to prepare

each order with consistent quality and deliver it in a

timely manner”.

CORPORATE VISSION

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Energizing rural India through a business process that creates and sustains
innovation and strategy, by continuously adding value and care to its
stakeholders with a style of management that will be exemplary to the corporate
world.

In business, there is always a better way. And the first step towards achieving
that is to have a dream. For Suguna, the dream is to shape the future of India.

Any dream for India would be incomplete without a powerful rural revival. This
belief has driven Suguna to invest heavily in rural India and set its sights on
a powerful economic and social transformation.

Suguna has focused its time and energy on developing rural India through the
poultry farming industry. A pioneer in the integration of this hitherto small
industry, Suguna’s fresh concepts such as contract farming has made individual
farmers an integral part of its family.

A holistic approach backed by technology, research and quality best practices,


has revolutionized this industry empowering farmers across the country with
wealth and prosperity.

With a commitment to economic and social development in rural India as its


core value, Suguna has today empowered over 15,000 farmers and is rewriting
the futures of thousands of farmers and entrepreneurs. Suguna is modernizing
the industry, creating employment, stepping up exports and has in store a bright
future for over one million rural households in India.

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PRODUCT PROFILE

Suguna Chicken - Younger, Tender, Better.

Suguna Chicken, known for its finest quality and taste is already a favorite
among many Indian households. Reared from the finest breed of carefully
selected chicks, Suguna is the leader in the Indian broiler chicken market.

Suguna’s innovation and efforts to maintain consistency, highest quality and


hygiene standards are well appreciated by the many that savor the taste of its
good chicken. A well controlled process ensures you get nothing but the
freshest of chicken straight from the farms. Grown in natural conditions with
nutrition rich feed, you can be assured that every bite is tender and juicy.

This superior quality chicken is now available at affordable prices. Through a


nationwide network of over 25,000 retail outlets. The next time you are out
shopping, look out for the Suguna Chicken sign in any of your neighborhood
chicken stores.

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Chicken 65

Chicken 65 is a spicy chicken treat with appetizing mint chutney. Boneless


pieces are marinated and in a special recipe and are ready to cook. Just thaw
and deep fry.

Southern Fried Chicken

Has tender boneless chicken seasoned and breaded and make a delicious treat.
Just thaw and deep fry. Comes with hot garlic sauce.

Chicken Manchurian

is a Chinese style delicacy made from tender boneless chicken tossed in oriental
sauce. No cooking is required. Ready to heat and eat.

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Chicken Kofta Curry

Indian style chicken koftas made from tender boneless chicken mixed with
fabulous spices. Comes with delicious gravy. No cooking is required. Just heat,
mix and eat.

Chicken Biryani

has tender chicken portions and long grained Basmati rice, cooked in the
traditional way with authentic Indian spices to make the best tasting
biryani ever. No cooking is required. All you have to do is just heat and
eat.

Chicken Tikka Masala and Jeera Pulao

Contains the spicy taste of chicken tikka combined with delicately seasoned
Basmati rice pulao to make this a great combination. No cooking is
required. Just heat and eat.

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Spaghetti Bolognese

With durum wheat spaghetti and minced chicken in Italian sauce makes this an
appetizing continental pasta meal. No cooking is required. Just heat and
eat.

Pasta Fiesta (Chicken)

With durum wheat pasta and tender minced chicken in a creamy sauce make
this an irresistible continental pasta combination. No cooking is required.
Just heat and eat.

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The various Suguna Anytime products include:

Whole Chicken is the whole chicken processed to


international quality standards.

Drumsticks (available with or without the skin) that


are taken from whole leg by removing the thigh portion

Boneless Breast (available with or without the skin)


consists of the entire boneless breast fillets and tenderloins

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Curry Cut is a whole chicken that is cut into small
pieces of uniform sizes

Minced Meat (available with or without the skin) is


minced meat from a whole de-boned chicken

Lollipop (available with and without giblets) are


produced from the chicken drumette and carry more flesh on the top

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Marinated Curry Cut (Chilli chicken style)
consists of curry cut pieces marinated with special seasoning and spices
and is ready to cook

Marinated Lollipop consists of lollipops marinated


with special seasoning and spices and is ready to cook

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Suguna value added eggs

Egg is one of the most nutritious food money can buy. Eggs provide significant
amounts of vitamins and minerals, and are also an excellent source of high-
quality proteins.

For the first time in India, Suguna Poultry Farm 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.

Suguna offers four varieties of value added speciality eggs, each fortified with
specific vitamins, and nutrients to help maintain a balanced diet and healthy
lifestyle for people of all age groups and health conditions.

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The four varieties of Suguna Value Added Eggs are:

The Suguna value added eggs come in 6-egg container boxes as a ‘value for
money’ product and is available at leading supermarkets and Suguna Daily
Fressh outlets across the country.

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ORGANIZATIONAL STRUCTURE

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Feed Mill - Manufacturing Process

For the manufacture of pellet feed for poultry Maize is the main ingredient. The
composition of feed is about 60% to 65% of maize and about 20-30% of Soya
de-oiled cake. In addition to the above, about dozen other ingredients are being
added for the positive effect on broiler growth. Poultry Industry has as many as
sixteen types of breeder feed meant for chicks, male birds, grower birds etc.
The blending ratio of the raw materials for each and every type of feed will be

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different. The Formulation will be changed from time to time because of the
change in seasons and individual merits of the type of bird. Some of the
important other ingredients are Bajra, De-oiled Rice Bran, Fish Meal, Meat cum
Bone Meal, Maize Gluten, Mutton Tallow, Vegetable Oil, Molasses etc.
An important input is medicinal premix which constitutes about 1% of the feed
being produced. This premix consists of vitamins, growth promoters, trace
minerals; antibiotics etc for the highest hygiene and environmental standards.
The proportions of the inputs for medicinal premix are also being modified
from time to time, season to season and flock to flock.

As maize and Soya are the major inputs for the manufacture of feed, they are
being stored in large capacity silos. So also Molasses (3%) is stored in large
capacity above ground Tanks. Other materials will be stored in the bins /
godown. Each raw material as and when received will be subjected to strict
quality tests. An in-house State of Art lab will be ready and helpful to inspect
the materials before being unloaded. Stringent quality check will be followed
on all the raw material purchased for manufacture of feed. The material which
fails the quality requirement will be rejected.

All the raw material received will be cleaned in the grain cleaner to take away
the impurities like stone, straw etc before being stored in the silos. The All the
materials are handled in the automated conveyor systems. The feed mill thus
will facilitate the move of materials using machines significantly.
All the materials which are stored in the bin & silos will be mixed in proportion
based on the formulation using the Micro processor based Batching system. The

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batching system has a separate batching bins fitted with load cells for major &
Micro ingredients. In the system, magnets will be placed in appropriate places
to trap the ferrous materials entering the system & contaminating the Feed. The
Mixed materials are fed to the pulverizer for size reducing.

Pulverizes will pound premixed materials into Mash feed and then the feed will
be collected and carried through another bucket elevator to mixture machine. In
this machine, the medicinal premix / oils will be added and uniformly mixed for
a specified duration. The homogeneous powdered Mash is then being carried
over to Pellet Mill. It will then be transferred to an insulated jacket bin where
the materials will be kept at a high temperature of around 82 degree Celsius for
a minimum period of 2.5 minutes for the removal of harmful bacteria. This
process is called Hygienising. From the hygienising chamber the feed is drawn
to pellet mill where appropriate quantity of steam is being added to palletize the
feed. The pelleted feed is then drawn, cooled and for being crumbled. The
Pellet Feed is then sent to the packing house area for being packed in poly bags
of appropriate weight.
The advantages of the above system are mainly the following:
• The entire feed will be free from harmful germs
• The pellet feed will be a homogeneous and reduced bulkiness and will
ensure that the birds are fed with the appropriate dosage of feed.
• The pellet feed will get half cooked in this modern process and will be
easily digested by the birds.
• The pellet feed will ensure very lower wastage percentage when fed to
birds.

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Environment Standards in the process of Manufacturing

• The entire feed mill area will be geared up to maintain a higher level of
bio-security measures right from the point of unloading of raw materials
to the point of dispatch of finished goods. Because of the hygienic
process, each pellet is a complete feed and toxic pathogens and anti-
nutritional factors are destroyed during pellet production.

• Sophisticated equipments to test moisture, protein contents etc., will be


provided in the in-house which will be manned by quality assurance
department staff round the clock.

Location Advantages of the Project


As the Project is commissioned to be situated at Hoskote in Bangalore and
because of the basic availability of the following infrastructure, the project is
technically feasible.
• Easy availability of Maize and Soya at cheaper prices in the surrounding
area; Maize is grown in this area. Miraj is the biggest 'Mandi' for Maize

• Transport facilities to deliver and receive materials conveniently and


efficiently
• Water availability throughout the year
• Availability of abundant skilled Labou
• On time delivery of feed to Suguna’s Farms

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Licensing and Registration Requirements

SUGUNA will comply with the provisions of all Acts/Rules/Notifications


issued from time to time by the Karnataka State Govt. /Central Govt. The
conversion of land for industrial use has already been obtained.

OTHER REGULATORY COMPLIANCE

SUGUNA will also comply with the other statutory requirements mentioned
hereunder for the start of this feed mill.

• Industrial License under Industries (Development and Regulation) Act


1951

• Municipal License

• Factories Act, 1948 and other Labour Legislations

• Sales Tax Law in Karnataka

• No Objection Certificate from Pollution Control Board

• Environmental License

• Permission for Power Connection from Electricity Department

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STRUCTURE OF FINANCE DEPARTMENT

FINANCE DEPARTMENT
The department functions under the supervision and direction of the DGM-
Finance, accounts manager and executive/assistants. For the concurrent scrutiny
of transaction taking place in various territorial units of the organization an
accounts branch has been established in each unit, which is in charge of an
accounts manager by accounts with necessary clerical staff.

The account manager is under the DGM-Finance control of the unit, in matters
relating to audit and accounts, he is guided by the instructions issued by chief
DGM-finance.

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FUNCTIONS:
1. Preparation of the annual budget estimates.
2. Scrutiny of the all revenue collection.
3. Pre-audit of claims.
4. Compilation of accounts.
5. Express views on all matters having financial implications.

Project Cost Details


This Project is being to set up at a capacity of 80 tons per hour (TPH) and the
capacity is expandable to 140 TPH with some additional machines and the
following assets have been proposed to be acquired. The design Capacity at set
up is 6,36,000MT of feed per Annum.

Land:
The company has identified and purchased 31 Acre of land for the proposed
Feed mill near Hoskote in Karnataka. The conversion of land for industrial use
has already been obtained.

Cost of Steel:
The Steel requirement for the Feed Mill Plant is 200 MT, the cost is estimated
at Rs.345 lakhs. Fabrication and erection charges for the structure for the will
be around Rs.40 lakhs.

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Civil Cost:
The feed mill is set to have the following building structures with an estimated
cost of Rs.2450 Lakhs
1) Main Factory Buildings
2) Office Building
3) Raw Materials Storage Building
4) Finished Goods Storage Building
5) Laboratory Building
6) Mill Towers
7) Weigh Bridge
8) Staff Dining & Rest Room
9) Others

Cost of Machines

The total estimated cost of machinery has been estimated to be around Rs.800
Lakh and the cost comprises of the following machines.
Particular Amount
1) Major machines to be imported : Rs.700 Lakh.
2) Other Machines to be fabricated at the site : Rs.100 Lakhs.
3) Batching & Plant automation system: Rs.100 Lakhs
4) Miscellaneous items (buckets, belts, etc): Rs. 50 Lakhs.
5) Cost of Spare Tools & Tackles : Rs. 50 Lakhs.

Total Cost Rs.1000 Lakhs.

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Electric Motors & Installations

Thus the total estimated cost of electrification work including Generators is


around Rs.800 lakhs, which includes Drive Motor with Panels, Transformers,
Power House, Air compressor & stand by generator of 2000 KVA.

Laboratory:
It is a must to maintain a laboratory at the site for the assurance of quality of
poultry feed materials being received finished feed dispatched. The cost of
laboratory equipments and apparatus is estimated around Rs. 30.00 lakh. The
following among other Tests will be conducted on Raw Material as well as
finished goods i.e. Poultry Feed:
1. Test for Proximate Analysis
2. Adulteration Analysis
3. Toxin Analysis etc.

Computer Systems
Since all the systems are going to be controlled by a central computer,
information at every stage of the process will be made available. These are then
going to be processed to provide the management the required data and analysis
/ Aids in
• Monitoring the entire process
• Checking the efficiency of the process
• Calculating the total feed quantity arriving at the factory in a day/month.
• Monitoring the status at each trough

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• Knowing the various grades of feed packed

• Reviewing performance
• Report generation, tailor-made to your requirements

The company has thus proposed to execute all activities in a computerized


environment and the cost of computer hardware and software along with needed
furniture facilities estimated in the order of Rs.20 Lakh.

Weigh Bridges:

For weighing loads carried by road, it is a must to have a very heavy duty
weighing scale which can weigh the vehicle both empty and when loaded and
thus calculate the load carried by the vehicle. The cost of the same is estimated
about Rs.15.00 lakhs.

Consultancy:
We have appointed M/s USD Agro Eftech Private limited as the Technical
Consultants for the proposed Feed Mill. The consultancy charges are Rs.50.00
lashes.

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MARKETING DEPARTMENT

The marketing department is not only selling their products but it making
publicity and performing and providing good service, helping in highlighting
the achievements what suguna poultry doing to the public.

To further enhance productivity and market Suguna Products worldwide, the


group has entered into partnerships with leaders of various countries. Suguna
has a tie-up with Ross Breeders of UK for the supply of Grand Parent Chicks.
The group also has a joint venture with Supreme Foods Co. Ltd. in the Gulf,
which led to the institution of Supreme Suguna Foods Co. Ltd. - an ultra

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modern chicken processing facility certified with HACCP and located at
Udumalpet.

SUGUNA POULTRY'S SALES TURNOVER


2500
2000
VALUE IN RUPEES

2000
1445
(Crores)

1500
1101
1000 822
559
370 451
500

0
2001 - 2002 - 2003 - 2004 - 2005 - 2006 - 2007 -
2002 2003 2004 2005 2006 2007 2008
YEAR

Started as a small traditional enterprise, Suguna has grown into a highly


professional Rs.1101 crore turnover corporate enterprise and offers products
and services that encompass the whole gamut of the Poultry Industry.

Suguna Poultry Group consists of Contract Farms, Broiler Operation Centers,


Poultry Feed Plants, Hatcheries, State-of-the-art Chicken Processing Export
Oriented Units, Regional Establishments and Management Information Systems

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HUMAN RESOURCE DEPARTMENT

The primary objective of HRM is to ensure the availability of a component and


willing workforce to an organization. HRM objectives are four fold:-

1. Social objectives
2. Organizational objectives
3. Functional objectives
4. Personal objectives

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Human Resource Management is a management function that helps manger’s
recruit, select, train and develops members for an organization. Obviously,
HRM is concerned with the people dimension in the organ8ization.

The activities included are:


• HR planning
• Job analysis and design
• Recruitment and selection
• Orientation and remuneration
• Motivation and communication
• Welfare
• Safety and health
• Industrial relation

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MANUFACTURING INFRASTRUCTURE

Grant Parent

Suguna has Grand Parent farms to house, imported world renowned Ross
Breeders Chicks. Ross Chicks fed with Suguna’s high nutritional feed and bred
under intensive farm management, produce hygienic hatching eggs. These
hatching eggs are then hatched to produce quality Parent Chicks.

Parent Stock

Parent Chicks are placed in select parent farms. Suguna’s Parent feed and
intensive farm management result in quality hatching eggs, which are set in
hygienic hatcheries to produce high quality broiler chicks. These broiler chicks
are distributed to Broiler Farmers across the country.

Broiler Farms

Broiler chicks are placed in various Contract Poultry Farms. Suguna, imparts
technical know – how, practices in rearing and bird farming. to rear the birds.
Upon maturity, these birds are segregated based on quality and marketed to
customers.

Feed Mills

To cater to the needs of Grand Parent, Parent and Broiler birds, Suguna has
state-of-art pellet mills. Apart from this, Suguna markets Quality Feed to
external markets also.

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Meat Processing Unit

Supreme Suguna Foods Company Ltd., 100% EOU, exports processed meat to
the Middle East and other countries. These products viz., Sugies and Tanmia
are ensured to conform to international Quality Standards.

Windmill

Suguna established its own windmill to support the need of its power
consumption. The excess power generated is sold to Tamil Nadu Electrical
Board.

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Supply- chain management

Suguna also indirectly adds value to rural farmers and suppliers in other ways,
such as purchasing supplies and providing direct and indirect employment.
Suguna purchases raw materials worth more than Rs.1000 crores per year.
Suguna has a strong SCM (Supply-Chain Management) Division which
constantly focuses on setting up direct contact with small and medium
manufacturers. It works with them to bring their standard on par with
international quality standards, and then sources raw materials from them. This
focus ensures manufacturers get better prices for their materials and Suguna
gets better quality.

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Research and Development

Research & Development (R&D) is a continuous improvement process to


enrich quality of the output. Suguna firmly believes in this process and devotes
significant effort towards R&D initiatives.

Suguna’s R&D initiatives are driven by highly qualified and experienced


poultry experts including nutritionists and veterinarians. These initiatives over
time have helped establish Standard Operating Procedures (SOP) and Good
Manufacturing Practice (GMP) which are strictly followed at all Suguna
facilities and contract farms.

The R&D team focuses on the areas of environment, birds’ diet, disease
management, the overall health and development of the birds. The R&D team is
always looking at bringing efficiency through effective water sanitation,
temperature, ventilation, lighting and litter / floor management. Since feed and
nutrition are important factors, the team constantly aims at devising feed
formulation for a healthy feed conversion rate (FCR). The team also works to

Identify newer ingredients using natural agro based products. Disease


management is another area where the team pays attention to prevent outbreaks.
By closely monitoring and reviewing bird performance, the team helps identify
vulnerabilities and define programs to control them. The R&D team assures the
farmers quality output and support through innovative and practical solutions
based on scientific poultry management. Through activities by its central
monitoring unit that include field trips, 180 trials everyday and 24 x 7 x 365
support services.

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SWOT ANALYSIS

STRENGTHS:

• No.1 in Indian broiler production

• 10th largest poultry enterprise in the world

• Rs. 2030 crore turnover

• 25,000 channel partners

• 500,000 people benefit from indirect employment

•Good infrastructure

•A well trained staff

•Quality services

•The public have good image about suguna chicken

WEAKNESS:

•Scarcity of skilled technicians

•Lack of coordination between departments

•Customer orientation is absent

•Slow adaptability to the latest trends in the distribution of

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services

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Opportunities:

1. Ability to get extra revenues by using available


space for advertising either on pub, bar or on vehicles.

2. Improve in the Standard Of Living of nearby living


people

3. Maize cultivating Farmers can sell at better prices


to SUGUNA

Threats:

1. By purely vegetarian peoples

4. By low price off vegetables

5. By fat contents in chicken

6. Threat of competitors

7. Threat of bird flu

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IDENTIFICATION OF PROBLEMS
• There is a lack of communication between employees and farmers due
to the language problem as farmers knew only regional language.
• There is Shortage of employee labour and security.
• There is no improvement of feed quality

SUGGESTIONS

• In breeder poultry farms concessional canteen facilities has to


be provided, it should be very hygienic and fair price to the L3 &
L4 employees and labours can feel comfortable to eat in the
canteen and supply of clean water is must.

• Cleanliness and hygienic environment should be maintained


so that the employee do not get the diseases due to un hygienic at
work.

• Another important thing is that it should be looked in to


safety, transport facility due to farms in remote areas and medical
facility to employees.

• Continuous technical training program for farms employee and

labourers to avoid mortality.

• Suguna poultry feed can be introduced to market so it can


increase the brand image.

• Suguna ready to eat outlets can be introduced in various places.

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CONCLUSION

Suguna is one of the leading poultry farm in India and 10th largest poultry
enterprise in the world.

The success of Suguna lies in building strong and loyal relationship with the
farmers who are more than simply an extension of our value chain. Suguna
treat them as partners, and believe strongly in the vision of Energizing Rural
India. Through the success of contract farming, Suguna has built up a strong
and innovative business model which cannot be replicated easily.

Observing the impact of Suguna’s initiatives on rural development, Chief


Ministers of other States such as Andhra Pradesh, West Bengal, Punjab and
Jharkand have approached Suguna to set up operations in their states.

Suguna successfully reduced middlemen in the poultry chain from 14 to 4.


Farmers deal only with the company, and get assured returns. Suguna provides
them all the inputs and in return, the farmers get a fixed growing charge which
can be increased through optimizing production cost. Suguna also bears the
production and market risks, thereby protecting the livelihoods of farmers.
Regardless of the market price, the farmers still get the assured growing charge,
and incentives. Suguna provides a lot of project guidance and assistance with
getting finance, and provide farmers with continuous technical training in
scientific poultry management practices. In some areas, farmers approach
Suguna with only land, and we help them to put up a poultry farm, and then
place our chicks and train the farmers to manage the birds. Our line supervisors
visit the farms every day to monitor the birds and to troubleshoot problems.

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BIBLIOGRAPHY

Magazine: Suguna prime time.

Brouchers and Annual Reports

www.sugunapoultry.com

Human Resources Management: K.Ashwathappa.

Marketing Management: Philip Kotler.

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ANEXURE:-

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