From Rs 5,000 to Rs 10,750 Cr: Suguna Foods' Incredible Journey
Suguna Foods, founded with a mere Rs 5,000 in '84, evolved into a Rs 10,750 Cr poultry powerhouse, pioneering contract farming in India's agri-sector
In the heart of Coimbatore lie tales of several triumphs, yetcarves a niche of its own, symbolising grit, forward-thinking, and business acumen. Founded by brothers B Soundararajan and GB Sundararajan in 1984, this venture took root with a humble sum of Rs 5,000 in Udumalaipettai, a location about 72 km from their birthplace. Fast forward to the present, the company celebrates a staggering turnover of Rs 10,750 Cr.
The road wasn't always smooth for Soundararajan. Post-school, he delved into vegetable cultivation on familial grounds, which wasn't rewarding. However, every setback brings a new opportunity. Realising this, he teamed up with his sibling, setting forth to redefine India's poultry landscape.
Their initial days saw them as suppliers of chicken feed to the local agricultural community. But it was Soundararajan's groundbreaking approach to contract-based poultry farming that catapulted their venture into the limelight. Embracing this model in 1990 with just three local farmers, they introduced a model unfamiliar to India. By 1997, this network mushroomed to 40 farmers, hitting a turnover of Rs 7 crore. Soon, "Suguna Chicken" became a hallmark of premium poultry in the region.
As time unfolded, Suguna Foods diversified its offerings. Ranging from broiler farming, hatcheries, to feed manufacturing units and health-centric animal products, the firm stamped its presence across the poultry domain. Addressing both individual consumers and businesses, they introduced popular brands like Delfrez and Mother’s Delight in the retail space. Simultaneously, in the corporate arena, Suguna Chicken and Suguna Feeds emerged as leaders.
Highlighting their growth-centric mindset, Delfrez began with a respectable turnover of Rs 250 Cr and is now eyeing a goal of Rs 750 Cr in the upcoming fiscal.
So, what's next on the horizon for Suguna Foods? Rather than diversifying too broadly, they aspire to deepen their prowess in their core areas. They aim to refine their craft in their current sectors, shunning extensive diversification.
The journey of Suguna Foods offers invaluable lessons for budding business minds. It's a living proof of tenacity, pioneering spirit, and the knack to seize golden opportunities amid adversities.