Suguna invests in poultry sectors in India, Bangladesh, Kenya

India’s top poultry company Suguna Foods has announced plans to invest in its domestic market, as well as Bangladesh and Kenya.

(Yurii Bukhanovskyi | Bigstock)
(Yurii Bukhanovskyi | Bigstock)

India’s top poultry company, Suguna Foods, has announced plans to invest in its domestic market, as well as in Bangladesh and Kenya.

In its home market, Suguna will expand capacity in its vertically integrated business model, reports Business Standard.

New facilities in India include a hatchery, processing plant, controlled-environment poultry houses, and a premix plant. Through operating company Suguna Foods Private Limited (SFPL), the firm plans to strengthen its business with a focus on the states of Uttar Pradesh, Odisha, and West Bengal. New feed mills and breeding facilities will be constructed in these northern and eastern Indian states.

The cost of these investments in India is estimated at US$42.9 million.

New overseas investments by Suguna

With the aim to expand the national poultry sectors and strengthen its business position, Suguna is also planning to construct new hatcheries in Bangladesh and Kenya, according to Business Standard. US$15.9 million will be invested by the firm in Suguna Food and Feeds Bangladesh Pvt. Ltd, and a further US$8.4 million through Suguna Poultry (Kenya) Limited.

The total investment of US$67.2 million will be backed by International Finance Corporation (IFC). The investment arm of the World Bank, IFC is offering a loan of up to US$15 million to SFPL, as well as Indian rupee (INR)-denominated non-convertible debentures of up to INR1.8 billion (US$24 million).

In east Africa, Suguna Poultry (Kenya) Limited will expand capacity of its poultry breeding, hatchery, and feed mill, reports Business Daily Africa. The firm has a breeding operation in Kajiado, and a feed mill in Thika, Kiambu.

Official statistics point to a recent rapid expansion in Kenya’s poultry sector. There has been an increase of 13% in the value of domestic poultry meat and eggs over the past year.

More of Suguna Foods

With annual production of around 400 million birds, Suguna Foods is among the Top Poultry Companies in Asia, according to the WATTAgNet database.

Suguna Foods is an integrated poultry operation that markets live broiler chicken, value-added eggs and frozen chicken products, and operates a chain of retail outlets. The company processes 12,000 metric tons of chicken meat per year. The firm exports frozen chicken to Saudi Arabia, Kuwait, Dubai, Oman, Bahrain, Afghanistan, Qatar, Japan and others.

According to the firm’s own web site, Suguna Foods was founded in 1986 by B. Soundararajan and G.B. Sundararajan. The firm’s growth since that time is founded on its integrated structure and close working relationship with its contract farmers, which number more than 39,000.

With operations in 18 states of India and one Union Territory, turnover in 2018-19 is reported to be more than INR90 billion. Annual production has reached 538 million chickens, and the company operates 83 hatcheries and 63 feed mills.

Page 1 of 1576
Next Page