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Case Study Of Suguna Foods

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39. In the poultry business, it’s all about timely delivery, quality, and ensuring good returns for all stakeholders on a consistent basis. And fame comes only to the rarest of rare. Two brothers from Tamil Nadu – Bangaruswami Soundararajan and Bangaruswami Sundararajan – have perfected a unique all-inclusive poultry business that runs on a contract farming model involving small and marginal farmers. Kick-started in 1978, their brainchild, Suguna Foods Ltd (formerly Suguna Poultry Farm Ltd), has been instrumental in changing the lives of thousands of small-time poultry farmers by giving them sufficient returns. The brothers, who are XIth and XIIth grade pass-outs, have turned Suguna Foods into a `5,000 crore business with presence across India. …show more content…

The company’s main clients are top QSR chains, big restaurants and hotels, modern retail outlets, and direct retail shops. In 2010, Suguna entered Bangladesh and Sri Lanka. Today, it is eyeing the Southeast Asian and African markets. On the domestic front, Suguna Foods, which commands 18 per cent of the market share, expects future growth from newer markets such as Bihar, Madhya Pradesh, and Jharkhand.
58. “We are not producing in Kerala, but selling very well in Kerala,” says Soundararajan. “In the west, we are in Maharashtra and Gujarat. As far as sales are concerned, we will get into Madhya Pradesh soon. In the north, we have presence in Punjab, Haryana, Rajasthan, and Uttar Pradesh. In the east, we are operating in Orissa, West Bengal, Jharkhand, Bihar, and Assam. India is an emerging market. We have around 30-35 per cent market share. Consumption is growing, and we are expecting 15 per cent growth this fiscal.”
59. Suguna Foods has an aggregated market share of over 80 per cent in 14 states. Compared to Tamil Nadu, Kerala is a better market as the sales at individual shops are quite high. About `6-8 lakh investment is required for setting up a franchise of Suguna Daily Fresh. The shop requires an area of 250-300 sq ft. The company runs around 400 franchisees across the country, with a majority of them located in Kerala (200) and Tamil

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