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INTERNSHIP TRAINING PROGRAM

PROJECT REPORT

SUBMITTED BY

NAME : K.YUVARAJ.

REGNO : 098001166060.

CLASS : MBA(2009-11)

SVS INSTITUTE OF MANAGEMENT STUDIES,

JP NAGAR, ARASAMPALAYAM, COIMBATORE – 642109

In partial fulfillment of the requirements


for the award of the degree

of
Master of Business Administration

August 2010

Anna University Coimbatore


SVS INSTITUTE OF MANAGEMENT STUDIES,
JP NAGAR, ARASAMPALAYAM,
COIMBATORE - 642109

INTERNSHIP TRAINING PROGRAM

PROJECT REPORT

SUBMITTED BY

NAME: K.YUVARAJ REGNO : 098001166060

CLASS: MBA (2009-11) TRIMESTER: IV

BONAFIDE CERTIFICATE

Certified Bonafied Record Of Work Done By K.YUVARAJ during the


Academic Year 2009-2010.

Dr. S. Mohandass Mr.T.Balaji


DIRECTOR FACULTY IN-CHARGE

Submitted for the ANNA UNIVERSITY- Coimbatore Practical


Examination Held On ___________________.

Internal Examiner External Examiner.


ACKNOWLEDGEMENT

It is with great pleasure, deep satisfaction and gratitude that I acknowledge


several individuals who contributed towards the successful completion of this project.

I am grateful to the management of SVS Institute of management studies


for giving me a chance to be a part of this proud institution.

I express my sincere thanks to Dr.S.Mohandass MBA., M.sc., [App.psych],


Ph.D.,Director.,Department of Management, for her constant support throughout my
study.

It is my prime to solemnly express my sense of gratitude to my guide


Mr.T.Balaji M.sc, M.phil, MBA..,Lecturer, Department of Management, for her
constant encouragement, inspiration, valuable guidance and suggestion at every
stage of my project.

I take this opportunity to thank my parents and friends for their constant
support and encouragement throughout the course of this project.
DECLARATION

I affirm that the Organizational Study at SUGUNA GROUP being submitted in


partial fulfillment for the award of MBA is the original work carried out by me. It has not
formed the part of any other project work submitted for award of any degree or diploma,
either in this or any other University.

YUVARAJ.K

(098001166060)
CONTENTS

S.NO PARTICULARS PAGE NO

1. INTRODUCTION 1

2. INDUTRY PROFILE 9

3. ORGANIZATION STRUCTURE 19

4. FUNCTIONS OF FINANCE DEPARTMENT 21

5. FUNCTIONS OF MARKETING 26
DEPARTMENT

6. FUNCTIONS OF HUMAN RESOURCE 33


DEPARTMENT

7. FUNCTIONS OF PRODUCTION 37
DEPARTMENT

8. FINDINGS AND ANALYSIS 66

9. CONCLUSION 68
INTRODUCTION

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1.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.

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.

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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 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.

MrB.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 Addressed grass root problems firsthand. As Suguna’s activities began to
expand beyond Tamil Nadu, the company began receiving invitations from state governments

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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.B. 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, MrSoundararajan spearheads projects and capital expansion to meet
future growth requirements and trends. India’s largest fully automated feed mill 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, MrSoundararajan


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 and Vice Chairman for CLFMA
from 2005 till date. MrSoundararajan 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.B.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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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.

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.

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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 Energizing 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 Jharkhand 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.
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’. Expertsfrom our corn division encourage farmers to

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grow corn, explain the benefits and theknow-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.

Corporate Social Responsibility:

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.

Energizing 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.

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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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INDUSTRY PROFILE

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2.INDUSTRY PROFILE

Company Name : Suguna Poultry Farm Ltd.

Contact Person : Mr.B. Soundararajan

Address : Suguna Poultry Group 5th Floor, Durga Enclave, Avinashi Road
Coimbatore, Tamil Nadu, India.

Zip /Postal Code: 641 018

Telephone : +91-422-4343100

Fax : +91-422-4392507

Website : www.sugunapoultry.com

Description : Products/Services:
Suguna poultry farm ltd. Is into broiler integration, breeding of layer
and broiler GPs and parent stock, the company is operating from 9
states across India, namely: Tamil Nadu, Andhra Pradesh, Karnataka,
Maharashtra, Gujarat, Orissa, West Bengal, Punjab and Haryana.
Brand Name:
1. Suguna Poultry Farm Ltd.
2. Suguna Chicken,
3. Suguna Group.
Competitors : venkatewara,shanthi poultry, Sunstar poultry,pioneer group.

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.

he 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.

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Suguna group awards:

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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CorporateVision:

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.

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.

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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.

Energizing 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 Lehmann in Germany, the best in layers. State-of-the-art
hatcheries, quality feed and best farm management practices ensure 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 Fresh 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.

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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 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.

Sugunaanytime 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 Fresh:

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.

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.Thecentre 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.

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

Milestone:

1984 Suguna Group was founded

1991 Introduced new Concept of contract farming in India

1992 First Hatchery

1993 First Breeder Operation

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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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ORGANIZATIONAL
STRUCTURE

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3. ORGANIZATIONAL STRUCTURE:

Flow Chart No:-1

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FUNCTIONS OF FINANACE
DEPARTMENT

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4. FUNCTIONS OF FINANACE DEPARTMENT:

Structure of Finance Department:

Flow Chart No:-2

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.
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.

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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.
Civil Cost:
The feed mill is set to have the following building structureswith 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

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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.

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.

SVS Institute of management studies 24


• Monitoring the status at each trough
• Knowing the various grades of feed packed
• 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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MARKETING DEPARTMENT

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5. MARKETING DEPARTMENT

Flow Chart No:-3

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 modern chicken processing facility certified with HACCP and
located at Udumalpet.

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Flow Chart No:-4

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

The role of the marketing manager:

 Instilling a marketing led ethos throughout the business


 Researching and reporting on external opportunities
 Understanding current and potential customers
 Managing the customer journey (customer relationship management)
 Developing the marketing strategy and plan
 Management of the marketing mix
 Managing budgets

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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 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.

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Supply- Chain Management:

Flow Chart No:-5

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 focus ensures
manufacturers get better prices for their materials and Suguna gets better quality.

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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

 Customer orientation is absent

 Slow adaptability to the latest trends in the distribution of


services

Opportunities:

 Ability to get extra revenues by using available space for advertising


either on pub, bar or on vehicles.

 Improve in the Standard Of Living of nearby living people

 Maize cultivating Farmers can sell at better prices to SUGUNA

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Threats:

 By purely vegetarian peoples

 By low price off vegetables

 By fat contents in chicken

 Threat of competitors

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FUNCTIONS OF HUMAN
RESOURCE DEPARTMENT

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6.FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE DEPARTMENT

Flow Chart No:-6

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
Employee Recruitment:

 Leave Records
 Provide and co-coordinating training programs
(project specific, technology specific)
 Lead and / or contribute to initiatives designed to
foster a global culture of innovation
 Recommend process improvements for internal HR
processes / CMM process
 Special project assignments as needed
 Conducting and coordinating interview for profiles
technically short listed candidates.
Work culture:
 Commitment to economic and social development.
 High level of trust and worthiness among employees, partners, consumers, society at
large.
 Integrity in all dealing with employees, partners, consumers.
 Continuous learning and innovation.
 Knowledge based learning driven by values.

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Welfare polices:
 Employee higher education policy.This policy is to enhance the academic
qualification of the employee. Applicable to employees with minmum of 2 years
service in Suguna.
 Family support fund.
 Marriage gifts.
 Personal loan.
Eligible on completion of 12 months service.loan on Self marriage and self medical
treatment. Employees at L6, L7, L8 are eligible for car loans. Written request letter is
to be submitted to respective HR through the reporting manager.
 Reward
 Service award
 5 Years  Wrist watch with Suguna logo.
 10 Years  8 gm worth gold ring with Suguna logo.
 20 Years  12gm worth gold lcket with Suguna logo.
Whistle blower policy:
 To maintain the highest standard of ethical, moral and legal business conducts.
 Safeguards employees from victimization.
 The ombudsmen committee consist the accounts head & MD of the company.
 Committee will receive complaints and take appropriate actions.

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FUNCTIONS OF
PRODUCTION DEPARTMENT
DEPARTMENT

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7. FUNCTIONS OF PRODUCTION DEPARTMENT

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.

Superior chicks come from a superior breed. Suguna imports Grand Parent chicks
from Aviagen, UK for broiler (Ross). With a vast experience and knowledge in the Indian
Poultry industry, you can be sure to receive Parent stock of the highest quality. Suguna’s in-
depth understanding of your needs and the Indian environmental conditions helps select the
right breed of a good lineage.

Suguna’s commitment to provide you with high quality products is further


strengthened by its commitment and efforts in R&D and technology. With Suguna, you not
just benefit from healthy stock but also a rich experience that guides you to ensure maximum
productivity levels are achieved.

Breeding:

Suguna Poultry presents you with Ross 308 parent stock. Parent lines are reared by
Suguna’s experts with scientific management processes in a bio-secure environment. With a
keen understanding and insight of your requirements, the GP and Parent lines are reared to
deliver better quality chicks that offer improved feed conversion rate (FCR), increased
productivity, disease resistance, better performance and adaptability of the chicken to Indian

SVS Institute of management studies 38


environmental conditions. Suguna’s experts add further value through field support to help
achieve better quality chicken meat and eggs.

As a broiler breeder farmer, the Ross breed is an ideal selection to meet your objective
of producing high quality chicks. The Ross 308 breeder is proven to produce large number of
eggs with good hatchability. Disinfecting and careful handling of the eggs at the farm and the
hatchery and incubation in state-of-the-art Peter Sime and Pas Reform imported setters
/hatchers ensures high chick quality. Ross 308 delivers high meat yield, catering to the needs
of both dressing and boneless poultry meat. Hence, Ross 308 is the chosen breed for broiler
chicken where a variety of end product requirements need to be met.

The breed’s inherent nature of excellent livability and feed efficiency makes it a
perfect match for the Indian conditions. With Suguna and Ross 308, you can be sure of
consistent performance and delivery.

Quality:

Despite Ross 308’s excellent characteristics, Suguna makes every attempt to maintain
high quality levels. The parent day old chicks are produced and brought straight to the
brooding farm where they are reared in a bio-secure environment. All the chicks are
administered with vaccination as per the prescribed guidelines and are nourished with quality
feed from Suguna’s own feed mills. Best quality and disease free hatching eggs are further
moved to the Suguna’s state-of-the-art hatcheries.

Quality is further reinstated by Suguna’s team of experts comprising of scientists,


doctors and veterinarians with international exposure. In addition, to help you maintain
quality, you are provided with know-how and training that ensures Good Manufacturing
Practices (GMP) and Standard Operating Procedures (SOP) are implemented. All these
initiatives are well supported with a continuous investment in the latest technology tools and
practices.

Every consignment dispatched is subject to a series of quality tests and is certified


‘free from clinical sign of any infectious disease’. With this you can be assured that the
Parent Stock reaching you is of utmost quality that is truly of international standards.

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Management Guide:

Suguna provides you with tips to ensure that you achieve and benefit maximum
performance. In order to achieve a healthy number of day-old chicks, it is essential to
understand the requirements of the Parent Stock flock at each stage of its life.

The critical age objectives for Parent Stock are summarized below for your
convenience:

Age Key Objectives

1-3 days Appetite development

3-28 days Achievement of target bodyweights at 7, 14, 21 and 28


days

Grade. Target is < 12 CV% at 28 days to permit 2 way


28 days
grading

28-56 days Control growth within each graded population

Stabilize populations to achieve correct incremental


56-70 days
growth

70 days Re-draw bodyweight targets (if required)

70-105 days Achieve correct incremental growth

105 days Increase feed to stimulate growth Re-draw bodyweight


targets (if required)

105-140
Achieve correct incremental growth
days

140-154
Give first light increase
days

140-161 Achieve correct incremental growth emphasizing


days uniformity of sexual maturity

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161-210 Increase feed in response to egg production, bodyweight
days gain and egg weight gain

210 days- Control bodyweight gain and egg weight by removing


depletion feed. Manage males by observation of bird condition.
Remove non-working males to maintain mating ratios

It is important to note that management requirements for male and female stock vary for each
stage of rearing and to prepare them for sexual maturity. We encourage you to consult
Suguna’s experts who will guide you to gain optimum performance throughout the lifecycle
of the parent stock.

Broiler Farms:

Company

Farmer

Wholesaler

Retailer

Flow Chart No:-7

Broiler Industry in India:

Chicken in many forms has always been a dish to relish among most Indians. Widely
accepted and consumed, the demand for chicken is only increasing.

The Broiler segment in India has continuously grown and is currently estimated to
grow to Rs 12,500 crores (INR 125 billion). Furthermore, India’s Ministry of Agriculture
estimates the production value at 2.3 million tones. In a country like India, due to lack of

SVS Institute of management studies 41


religious associations, the demand for broiler products is growing rapidly. Translated, this
provides great potential for success and growth in the poultry industry.

Opportunities for Broiler:

It is a well known fact that Indians prefer fresh chicken which is generally sold as live
birds and slaughtered in the neighborhood shops. However, consumption trends change with
time. Today, with changing lifestyles, the Indian consumer is accepting both dressed chicken
and fresh chilled chicken. This change in pattern provides with multiple ways of reaching out
to the consumer and accommodating the increasing demand. Add to these, the rising income
among the young and urban, the increasing domestic demand will only result in continuous
growth of the broiler market.

Farming in India:

Poultry farming in India has changed dramatically over the past two decades. With
independent poultry farming concepts, the sector has moved into a well organized network of
integrated farming also known as contract farming. Pioneered by Suguna Poultry way back in
1984, the Indian poultry farmers today find great relief and satisfaction in this model.

The integrated / contract farming model is gaining significant amount of popularity


and acceptance among poultry farmers. This model protects and retains the interests of both
the farmer and the integrator. The popularity of this model is influenced by the fact that the
integrator takes most of the risks as opposed to an independent farmer. The integrator takes
full responsibility of providing day old chicks, feed, medicines and supervision to the
farmers. In addition, the integrator brings Good Manufacturing Practice (GMP), and technical
know-how which leads to higher productivity. Absence of these benefits resulted in heavy
investments, multiple sources of interaction, and overall poor yield to the independent farmer.
Last but not the least, farmers are assured of considerable earnings in the integrated / contract
farming model.

So, if you are ready to experience less risks and assured returns, join our ever growing
family of over 15,000 farmers.

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Ross 308:

Consistent success and growth has always been important at Suguna. It is with this
vision that Suguna partners with the best in the industry both internationally and in India.
Suguna, partners with Aviagen – world’s leading poultry breeding company for its pedigree
line of broiler chicken.

Suguna provides its family of farmers the globally renowned brand of Ross
308 broiler chicks. The carefully selected Ross breed is well known for its successful
combination of male and female lines. The Ross breed is popular for its fast growth, excellent
feed conversion and have excellent livability including a healthy meat yield. This breed has
been selected to be vigorous with strong legs and a robust cardiovascular system. Also, the
Ross breed is chosen for its consistent performance and is well suited for a broad range of
end product requirements.

When you are part of Suguna, you are assured of nothing but the best.

Broiler Management:

Better management results in better productivity ! You could be an experienced


farmer or venturing newly into the poultry industry. But effective poultry management is
essential for the overall development and health of the bird. Suguna and its team of experts
will help you throughout the relationship providing valuable guidance and management tips.

While you are considering joining our successful family of farmers, we encourage
you to read through some basics of Broiler management.

Brooder Management:

The overall broiler performance is dependent on several management practices.


Brooder management is one of the important aspects of broiler rearing and management. The
early / developmental stage becomes critical for the overall result and growth of the bird.
Hence, care should be taken right from day one.

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Following are the objectives for brooding management:

• To ensure strong growth progression from day-old through to 7 days


• To develop appetite and promote feather growth
• To achieve target bodyweight by 14 days / 2 weeks and maintain a smooth curve
through to 28 days / 4 weeks
• To maintain uniformity across the flock

Effective brooding management includes providing the chicks with the right temperature,
relative humidity, air quality, good quality feed and water. Key points in brooding
management are:

• Clean, disinfect and fumigate the shed and equipment well before the arrival of the
chicks
• Check for the right temperature and humidity levels 24 hours prior to the arrival of the
birds
• Ensure chicks have immediate access to fresh water and feed
• Use chick behavior as an indicator of satisfactory temperature levels
• Replenish feed constantly during the brooding period
• Monitor and ensure chicks feeding by crop fill scores

These activities when followed collectively will result in good early development of
skeletal size, immune system and cardiovascular system and also improves appetite.

Grower & Finisher Management:

The grower stage is between the 14th and 28th day of the birds life cycle. During this
stage, the management objectives are to help the birds develop their immune system, uniform
growth, sexual maturity and production. The important functions of this stage is grading of
the birds on the basis of their weight, check and maintain body weight on a weekly basis,
feed and water management and vaccination. The birds above 28th day of age till lifting are
termed finisher.

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Resource Requirements:

The environment in which the birds are reared becomes critical for their performance.
In addition, it would help if the farm is located closer to the production and marketing
centers. A farm that has access to good roads and easy transportation has an added
advantage.While setting up a farm, there are a set of must have requirements to be adhered
to.Below is a list of the requisites to setting up a poultry farm:

 Water availability throughout the year. Water quality : Hardness below 750 ppm, pH
6.0 to 8.5
 Shed breadth should be 25 feet and shed floor should be at least 2 feet above ground
level
 E.B service, Tube light @ 1No for every 400 sq. ft, is essential
 Foot bath / dip with disinfectant for better bio – security
 Separate feed room near to the shed with stacking arrangement for feed bags
 Water tank - 2 Nos (One for medication and another for drinking water) with capacity
of 500 litres for every 1000 sq. ft
 Side Curtain for the entire length of the shed for both sides, inside and outside
 Partition for every 500 sq. ft
 Provision of death pit for disposal of dead birds
 Plat farm Provision for placing weighing scales 3 feet X 3 feet

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 external markets also.
Suguna has set up India's largest feedmill at Hoskote near Bangalore. With a capacity of 2000
metric tons per day, this fully automated feed mill produces specialized pellet and crumble
feed especially to cater to Suguna's own needs. This state-of-the-art feed mill has a capacity
of 80 TPH and expandable to 140 TPH, and is built with an investment of Rs. 5500 Lakh.
This modern feed mill will benefit about 2000 farmers in Karnataka while providing direct
employment to over 800 people and indirect employment to about 2000.

Poultry feed being the major input in the poultry production accounts for 70% - 80%
of the total production cost. With the poultry industry in India ready for a rapid growth,

SVS Institute of management studies 45


availability and cost can become critical influencing the production costs and the overall
quality of the product. With this keen understanding and foresight, Suguna, through its 50
feedmills assures you receive highest quality of feed in a timely manner and in adequate
quantities.

Suguna’sfeedmills are automated with inbuilt facility to store maize and soya in steel
silos. The finished product and other ingredients are further safely stored in the godowns.
Pelleting system, parallel mixer and grinding systems are automated through logic controls.
The end product is handled automatically from bagging to loading.

The feed produced in Suguna’s completely automated mills meets the highest hygiene
and environmental standards. The key types of feed produced at Suguna’sfeedmills are:

Mash: a blend of several feed ingredients, grinded to a small size but not to a powder

Pellets: small kernels of compressed mash, causing birds to eat the whole blend, not pick and
choose

Crumbles: pellets broken up into smaller pieces

Processing Plant:

Suguna’s HACCP certified processing plant employs the best-in-class technology and
equipments. The plant is situated at Udumalpet, Coimbatore in Tamilnadu, India. The
processing plant is amongst the most modern and technologically advanced units in India
with an operational capacity to process 3600 birds per day and 1500 metric tonnes per month.

Approved by the government for exports the plant is closely monitored by Export
Inspection Agency (EIA) and Meat Food Products Order (MFPO) by the Ministry of
Food Processing Industries, Government of India.WithSuguna, you can be sure that you have
partnered with the best of technology, experts and processes.

Exporting 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.

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Being a pioneer in the poultry industry in India for more than two decades, Suguna
has successfully made inroads into the international markets. Today, Suguna has an
exceptional track record of exporting frozen chicken to countries like Saudi Arabia, Kuwait,
Dubai, Oman, Bahrain, Afghanistan, Qatar and Japan.

Partner with Suguna and you will experience that the products supplied are of the
highest quality. With visionary leadership and scientific poultry management practices,
Suguna has successfully incorporated global standards and is on par with all major
international players.

Needless to say, your demands will be met adequately with our efficient supply chain
and a huge network of over 15,000 poultry farmers. Explore a little to know what Suguna has
to offer that will keep your customers delighted with quality supply of frozen poultry meat.

Quality:

Suguna's core focus on value addition and quality ensures that, products delivered are of
international standards. Processed at the state-of-the-art plant at Udumalpet near Coimbatore
in Tamil Nadu, India, the products adhere to global quality standards and guidelines.

Suguna’s processing plant follows the Codex Alimentarius standards & guidelines
and is HACCP certified. The processing plant is bio-secure to avoid cross contamination and
maintains a high level of hygiene in all primary and secondary processing areas. The
government approved export plant is regularly monitored by the Export Inspection Agency
(EIA) and Meat Food Products Order (MFPO) governed by the Ministry of Food Processing
Industries, Government of India.

Suguna employs a set of standard procedures and Good Manufacturing Practice


(GMP) in all its plants. The birds are sourced from Suguna’s export certified network of bio-
secure farms and approved for processing by qualified experts. Every bird is Halal cut,
scalded, defeathered, cleaned and, washed both internally and externally and sent for quick
chilling followed by grading, portioning and bagging. The bagged and carton-ed products are
sent immediately to blast freezing. As the entire process takes place within minutes of
slaughtering, it helps in retaining freshness of the end product. Stringent measures are
followed to ensure employees do not come in direct contact with the chicken. In addition,

SVS Institute of management studies 47


33every batch undergoes stringent quality tests before leaving the plant. Thus ensuring only
healthy and hygienic products reach you and your customers.

Layer:

Layer Industry in India:

Egg being an excellent source of proteins is fast becoming a favorite among urban
Indians. India, today is the fourth largest egg producer in the world. The layer segment in
India is all set to grow and is currently estimated at Rupees 10,000 crores (INR 100 billion).
According to the Ministry of Agriculture, India’s egg production is estimated at 47.3 billion
eggs per annum.

Today, with more and more ‘eggitarians’ on the rise, egg consumption is growing at
8% - 10% annually.

Opportunities for Layer Farming in India:

The overall global demand for eggs is growing, more in India. With rapidly changing
lifestyles, affluent culture, and a conscious need for general wellness, Indian consumers are
now opting for a more protein-rich diet. The changing trends are definitely a boon for the
layer sector in India.

Today, India’s per capita egg consumption is at 41 eggs per annum. Over the last
couple of years, the per capita consumption of eggs has increased at an aggregate of 4% with
a majority consumption recorded in the urban areas. Efforts to promote egg consumption are
in place by layer farming community in India to achieve 180 eggs per annum in the coming
years. Keeping this target in mind, the requirement for production is estimated at 18,000
crores (180 billion) eggs, while the current rate is capable of achieving only 46.2 billion eggs.
This provides for a huge opportunity to tap into. 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), the future is only bright for the layer sector in
India. It is estimated that, at present, Indian Poultry Industry contribution to the GDP is about
Rupees 80 billion which is likely to reach Rupees 500 billion by the Year 2010.

Affluent lifestyles and rapid development in the retail and food service industries is
expected to fuel the growth as targeted by The National Committee on Human Nutrition in

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India. Adding to this is the health conscious Indian shifting from a carbohydrate to a protein-
rich diet.

In addition, the Indian consumers’ preference is increasing for clean, safe, hygienic
nutritious and properly packed, labeled and presentable food products including eggs.
Introduction of modern state of-the-art technology in processing, packaging, labeling,
preservation of eggs is required to improve “quality" for domestic and export markets. With
economic liberalization and free trade under WTO, the domestic products have to maintain
"quality" to face the stiff competition from imported foreign poultry food products. Also, the
demand for branded or specialty eggs is fast growing at an estimated rate of 40 – 50% per
annum. Branded or specialty eggs offer innovative products to the consumer. These range
from eggs that are low in cholesterol, to those fortified with vitamins, protein, iron and other
everyday essential nutrients. This category is growing steadily in large cities with a huge
potential consumer base.

Are you ready to capitalize on this growth phenomenon in the Indian layer industry?
Now, be part of Suguna’s family of over 15,000 successful farmers and benefit from this
opportunity.

Breed:

Suguna Layer Breed:

Suguna Layer breed is unmatched for its production quality. Suguna Layers are best
suited for its adaptability to the differing environmental conditions in India. Matched with
this is the ability to give you maximum feed income over feed cost (IOFC).

With consumer preferences shifting to good / large sized eggs, Suguna Layer is the
ideal fit. Known for its egg size, color and weight, you get a product which produces higher
number of saleable eggs. In addition, an excellent feed conversion rate (FCR) helps you
maintain the overall production cost at an optimum level.

Suguna’s layer breeders are differentiated for its single age supply through an all-in-
all-out system. This helps you receive a quality supply of stocks and you can be assured that
the layers are free of all diseases. Suguna’s quality process ensures you receive birds that are
free from salmonella, Mycoplasma and vertically transmitted organisms. This means you
receive birds that are totally healthy and hygienic.

SVS Institute of management studies 49


Backing this is Suguna’s exceptional after sales service ready to address your needs.

Lohmann LSL- Lite India:

With the aim to deliver the best, Suguna partners with leading international players of
the world. Suguna in partnership with LohmannTierzucht GmbH brings you Lohmann LSL –
Lite India. LohmannTierzucht GmbH is the world leader in primary breeding in Layer
farming with its Group layer breeds having 54% share in the International layer market and
24% share alone in Lohmann LSL Egg layer brand.

Lohmann LSL – Lite India is from the pedigree line of layers chosen for Indian
conditions. Lohmann LSL-Lite is best known for its production capacity of over 325 eggs in
72 weeks. This unique quality gives you the benefit of production cost saving of over 3% per
egg.

Layer Management:

Bio-security:

Prevention is better than cure – as it has been said, prevention and exposure to
vulnerabilities is one of the most critical aspects of poultry management. In the current
scenario, a large number of birds are reared in individual farms calling for severe measures to
control the spread of outbreaks and diseases.

Infectious agents can enter the farm in many possible ways and result in widespread
diseases. An efficient bio-security program is necessary to curb diseases in a timely manner
and prevent your farm from being affected. In addition, bio-security programs also help you
achieve maximum returns on your efforts and investments. You will experience this in the
form of enhanced livability, growth rate and feed conversion efficiency by keeping the birds
healthy throughout the lifecycle.

Diseases can enter right from recently acquired birds from outside flocks, infected eggs, dust
and manure from equipments and supply vehicles, improper disposal of carcasses, water
impurities and importantly human feet, hands and clothes among many other factors. Hence,
everyone in your farm – whether directly or indirectly involved - needs to diligently follow
bio-security measures for the overall health of your farm.

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When you are with Suguna, you will receive expert assistance in setting up bio-
security programs. Suguna’s experts will help you design and deploy bio-security programs
in 3 stages:

Stage 1: Conceptual
Stage 2: Structural
Stage 3: Operational

Remember, Bio-security pays. Consult Suguna’s experts for effective Bio-security


management.

Shed Management:

Shed management ensures the birds get proper care and facility to support
development and performance. Good housekeeping and day-to-day sanitation practices
improve and help maintain the overall health of complete flocks.

Isolation of flock and restriction of workers movement is very essential to maintaining


the sanctity of the farm. Ensure there is a clearly demarcated area for flocks belonging to
different age groups. This level of hygienic maintenance should be applied at a day-to-day
level thereby reducing spreading of diseases and controlling of mortality rates. In the event
farm supervisors and managers are required to move between sheds, you are recommended to
guide them to visit flocks in the ascending order of age and follow the cleansing process duly.
In the event of an outbreak, restrict total movement of visitors and workers in to the affected
sheds. For crisis management, call on your Suguna representative who in turn will guide you.

Each time you are bringing in a new flock, ensure the shed is thoroughly cleaned as
per recommended guidelines. While cleaning the shed, ensure that the equipment are
disinfected and also remove the old litter from the premises. In addition, make arrangements
to sell out the manure before the previous stock is moved or culled.

Storage places for feed and medicines need to be cleaned regularly. Feed should always be
stored in a cool and dry place. Vaccines and medicines need to be stored as per the
manufacturer’s recommendations. For a healthy farm, periodic pest control programs need to
be enforced.

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Do not encourage movement of visitors and vehicles in the farm unless extremely
necessary. If visitors and vehicles are entering the farm, restrict entry only after they go
through the cleansing and disinfectant process.

Lastly, as a sign of a healthy farm, prominently display sign boards at the entrance of
the farm to read – “Our disease prevention program restricts entry only to employees. Your
cooperation is appreciated”.

Layer Management:

Better management results in better productivity! You could be an experienced farmer


or new to the poultry industry, effective poultry management is essential for the overall
development and health of the bird. Suguna and its team of experts will help you throughout
the relationship by providing valuable guidance and management tips.

While you are considering joining our successful family of poultry farmers, we
encourage you to read through some basics of Layer management.

Pullet Management:

Effective pullet management focuses on good skeletal muscular development, better


and healthy immune producing organs. The first three weeks are very crucial in the layer
chicken’s life. The space available to chicks plays a major role in the pullet’s growth. Pullet’s
overall growth and development are dependent on proper feed and diet programs. Achieving
weekly standard weight gain is important in layer performance, monitor and grade the pullets
from day one.

Prevention is better than cure-So vaccinate your pullets based on your farm and areas
disease load. Our technical team will support you to decide the vaccination schedule. Give
more emphasis on debeaking. Follow the guideline for correct temperature Suguna advises all
customers to use automatic voltage control. Debeak the chicks 9 to 11 days of its life. If
necessary do it again on or before the 11th week.

You can gain more knowledge and step-by-step guidance from Suguna’s team of experts.

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Feed Management:

In the poultry industry, it is a well established fact that the quality of feed intake
directly impacts the outcome of the product. With Suguna and Lohmann layers, feed intake
capacity is genetically well established. However, it is essential that due care is taken while
monitoring feed to the birds throughout its lifecycle.

The chickens energy requirements through feed is determined by factors such as body
weight, production rate, egg size, temperature, air movement and feathering. Essential
nutrient and mineral supply through feed management defines the overall productivity of the
bird. Feed types vary at different stages of the bird’s lifecycle. Suguna’s experts will guide
you throughout and help you administer the right feed types throughout the process.

Water Management:

Facts indicate that 60% - 70% of the bird and 70% of the egg are made up of water.
Hence, water becomes an absolutely essential element for the overall development. As birds
don’t have inbuilt storage mechanisms, it becomes necessary to provide them water regularly.
Water consumption in birds vary depending on weather conditions, feed consumption,
mineral levels in feed and importantly the type of housing – floor or cage.

Since water plays a key role in the lifecycle and general well being of the bird, a good
water management program is critical. Good quality water should always be sufficient and
available in continuous supply. Effective water management ensures no microbiological or
chemical contamination is found along with keeping the water cooler than environmental
temperature.

For worry free layer farming, Suguna recommends you to test water samples as described
below:

 Test for Microbiological contaminations at least once every month


 Test for Chemical contaminations at least once a year from every borewell
 Regularly disinfect water provided to the chicken
 Check if the water source is adequately disinfected or if sanitizer used is present in
excess levels
 Plan out a detailed action plan with Suguna’s experts after receiving the analysis /
reports

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Lighting Management:

Birds are more sensitive to light compared to humans. Hence, effective Lighting
Management is essential in poultry management. Lighting can influence the onset of lay,
early egg size and the total number of eggs produced. Lighting varies from differing
environments including both open and brown houses. With Suguna, you can benefit from our
vast experience in poultry management. Suguna’s experts provide you few insights and basic
tips on lighting management.

 Care should be taken to maintain light intensity at the same levels or even higher
during the last weeks of rearing
 In growing step down lighting from 3rd week onwards and bring to 12 hours lighting
( natural and if required artificial light ) 7th week onwards
 Stimulate lighting based on body weight .Suguna advices you to stimulate light as
soon as the bird reaches 1100 grams of body weight.
 It is important that you do not increase the length of day until you are prepared to start
stimulation
 During production, it is essential not to decrease the length of day as it would affect
the outcome of the eggs
 Light stimulation also helps you either to delay production or increase egg weight at
the start
 While transferring pullets from dark out rearing facilities to alternative housing
systems with natural light stresses the birds.
 Suguna strongly recommends growing the pullets in brown out houses .For user
friendly methodology contact Suguna Corp technical adviser about brownout house

With Suguna, you will benefit from its all round support capabilities. You can reach Suguna’s
experts for more detailed information and assistance.

Lab services:

Suguna with its team of veterinarians and R&D experts provide you with lab services.
Suguna’s lab services include regular health camps that will help you monitor and maintain
the health of the chicken.

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Suguna’s experts conduct tests on a monthly basis to ensure the environment is free of
contamination. Tests are conducted using the ‘exposure plates’ technique along with other
standard tests.

Various samples are collected from the farm at frequent intervals. These are processed
at Suguna’s state-of-the-art microbiology labs. Tests are conducted from the lab samples
ensure that the parent birds are free from Salmonella and Mycoplasma. In addition, the lab
services monitor Titer values regularly to protect the birds against all viral diseases and
infections. This in turn helps confirm that uniform maternal antibodies are transferred to layer
commercial day old chicks.

Suguna’s dedicated investment and focus in R&D, Health Services provides you with
a complete expert backing. You can learn more about the lab services by reaching out to our
representatives.

Products and product policies:

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.

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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.

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

Chicken Manchurianis 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 JeeraPulao

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.

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.

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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.

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

Marinated Curry Cut (Chilli chicken style) consists of


curry cut pieces marinated with special seasoning and spices and is ready to cook

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Marinated Lollipop consists of lollipops marinated with
special seasoning and spices and is ready to cook

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.

The four varieties of Suguna Value Added Eggs are:

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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.

Flow Chart No:-8

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Feed Mill - Manufacturing Process:

Flow Chart No:-9

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 sixteen types of breeder feed meant for

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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
theimportant 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. 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
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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.
 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
 Water availability throughout the year
 Availability of abundant skilled Labou
 On time delivery of feed to Suguna’s Farms

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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

 Permission for Power Connection from Electricity Department

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FINDINGS AND
SUGGETIONS

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8.FINDINGS AND SUGGETIONS

Findings :
 In production department there is more noise and dusts , especially in feed mills.
 Canteen facility not available in the company.
 There is no proper working time / shift for the drivers.
 More medicines are added to the food of chicks.
 In feed mill feed bag loading is done manually; it weighs about 80kg.
 More number of injections are injected to the chickens in the Export unit.

Suggestions:
 In production department more noise and dusts, so, better labors can be provided
masks and helmets in the feed mills.
 Canteen facility very essential for all the organization, so, better company establish
the canteen inside the Company.
 Driver shift time is 24 hours, It is dangerous for the drivers while driving. So Shifts
can be implemented for the drivers
 Avoiding medicine mixing with the chick food can prevent the Humans from serious
health issues.
 Feed bag loading can be done using machines, so it will not cause harm to the
backbone of workers.
 Injections have to be avoided for the welfare of worker’s health,

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CONCLUSION

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9. 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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