organisation study in suguna poultry form

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 world.

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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.

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

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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.

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

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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

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 UDUMALPET

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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.

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

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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

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”.

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CORPORATE VISSION

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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http://www.sugunapoultry.com/brands/suguna_value_added_eggs/active.asp

http://www.sugunapoultry.com/brands/suguna_value_added_eggs/heart.asp

http://www.sugunapoultry.com/brands/suguna_value_added_eggs/pro.asp

http://www.sugunapoultry.com/brands/suguna_value_added_eggs/shakti.asp

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

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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

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.

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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

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.

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The pellet feed will ensure very lower wastage percentage when fed to

birds.

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

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Water availability throughout the year

Availability of abundant skilled Labou

On time delivery of feed to Suguna’s Farms

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

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Permission for Power Connection from Electricity Department

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.

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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.

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

Knowing the various grades of feed packed

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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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http://en.wikipedia.org/wiki/Weighing_scale

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

370 451559

8221101

1445

2000

0

500

1000

1500

2000

2500

2001 -2002

2002 -2003

2003 -2004

2004 -2005

2005 -2006

2006 -2007

2007 -2008

YEAR

VA

LU

E I

N R

UP

EE

S

(Cro

res

)

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

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external markets also.

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

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focus ensures manufacturers get better prices for their materials and Suguna

gets better quality.

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

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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.

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

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Customer orientation is absent

Slow adaptability to the latest trends in the distribution of 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

1. Magazine: Suguna prime time.

2. Brouchers and Annual Reports

3. www.sugunapoultry.com

4. Human Resources Management: K.Ashwathappa.

5. Marketing Management: Philip Kotler.

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ANEXURE:-

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organisation study in suguna poultry form

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