The coronavirus (COVID-10) pandemic has already impacted a multitude of businesses in almost every sector. And its worldwide impacts are likely to continue for some time to come.
For India’s leading poultry company, Suguna Foods, this means its future strategy is to focus on two key sectors, reports Telegana Today.
Looking ahead, processed chicken meat and value-added vitamin D-enriched eggs will be at the center of the firm’s business. Although processed meat currently makes up only a tiny proportion of Suguna’s overall sales at present, the firm’s general manager for marketing, Ravindhara Babu says this area has great potential for future growth.
In the Indian poultry sector, direct and indirect impacts of the pandemic have already been responsible for losses of 200 billion rupees (INR; US$2.7 billion), he said. As a result, many smaller farmers have been forced to cease production.
However, there are grounds for optimism. The sector is regarded as essential by the Indian government, and measures such as loan restructuring are helping the poultry industry to recover. Babu estimates production is now back to 70% of pre-COVID levels.
Meanwhile, larger operations have sought alternative solutions, he said. For Suguna Foods, e-commerce platforms helped identify markets for its products that were originally destined for the hospitality sector.
Back in March, Suguna Foods was among the organizations that called on the Indian government to relax restrictions on road transport. In an early move aimed at reducing the spread of the coronavirus, the authorities had effectively halted truck movements nationwide. However, Suguna Foods highlighted that the vehicles were essential for the operation of the supply chain, and getting essential foods to Indian consumers.
More on Suguna Foods
Earlier this year, Suguna Foods announced a program of further investment in India and its overseas businesses. At a total cost of around US$67 million, the company planned an additional hatchery, processing plant, environment-controlled poultry house, premix plant, and feed mills in India, as well as new hatcheries in Bangladesh and Kenya.
With annual production of around 400 million birds, Suguna Foods is among the Top Poultry Companies in Asia, according to the WATTPoultry.com Top Companies 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 13,715 metric tons of chicken meat per year. Additionally, it 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 1984 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 42,000.
With operations in 18 states of India and one Union Territory, the firm’s reported turnover in 2019-2020 is more than INR87 billion. Annual production is reported at 517 million chickens, and the company operates 84 hatcheries and 66 feed mills. For its own use and for sale to third parties, Suguna Foods produces around 2.5 million metric tons of feed.
