Get All Access for $5/mo

The Poultry Magnate The Coimbatorebased company now has four business verticals- farm (Suguna Chicken), feed (Suguna Feeds), processed food (Delfrez), and soya (Mother's Delight). Suguna operates pan-India with 42,000 farmers across 15,000 villages in 18 states and has 250+ retail stores.

By Paromita Gupta

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Mr. B Soundarajan and Mr. G.B Sundararajan

INR 5000, that's the investment B. Soundararajan and G.B. Sundararajan had when they set up a poultry farm in Udumalaipettai back in 1984. Cut to 35 years later, the small farm has taken the shape of one of the leading broiler producers in India, Suguna Foods, with a turnover of INR 11,000+ crore.

At its nascency, the duo bought chicken feed and sold them to farmers, reducing 14 cost centres to four. However, they faced their share of resistance. "The multiple cost centres, value chains, and multiple margins had consequently had costs escalated, and farmers' profit margins dropped down. When the contract farming model was introduced, farmers were resistant to the idea, but once they saw good results in the trial batches, the word spread," shares B Soundararajan, chairman, Suguna Group.

The Coimbatore-based company now has four business verticals- farm (Suguna Chicken), feed (Suguna Feeds), processed food (Delfrez), and soya (Mother's Delight). Suguna operates pan-India with 42,000 farmers across 15,000 villages in 18 states and has 250+ retail stores. It has also set up poultry subsidiaries in Bangladesh and Kenya. "We have a dedicated farmer App to assist in growing chickens and trades have a mobile app to order goods easily," he adds.

The model, at its early stage, saw support from the then CM of Andhra Pradesh, Chandrababu Naidu, which encouraged them to foray into the state and later into other markets such as Karnataka, Maharashtra, etc. Suguna boasts of a 15 per cent market share in the poultry division in the country.

Factsheet:

>> Year of inception of the company- 1984

>> Turnover for FY 21-22: INR 11,000+ appx Cr

>> No. of employees- 8000+

>> Head office location- Coimbatore

Paromita Gupta

Entrepreneur Staff

Features Writer with Entrepreneur India

Covering news and trends in AI and Metaverse segments. An avid book reader running her personal blog on the side. You may reach me at paromita@entrepreneurindia.com. 
News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Business Process

How CEOs Can Take Control of Their Emails and Achieve Inbox Zero

Although there are many methodologies that leaders can use to manage their emails effectively, a consistent and thought-through process is the most effective way to systemize and respond to emails and is a step of stewardship for the effective leader.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.