41632146-K-YUVARAJ-098001166060

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 Pract ical 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

DEPARTMENT

26

6.

FUNCTIONS OF HUMAN RESOURCE

DEPARTMENT

33

7.

FUNCTIONS OF PRODUCTION

DEPARTMENT

37

8.

FINDINGS AND ANALYSIS

66

9.

CONCLUSION

68

1 SVS Institute of management studies

INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTION


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.


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


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.


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.


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


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.


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.


INDUSTRY PROFILEINDUSTRY PROFILEINDUSTRY PROFILEINDUSTRY PROFILE


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 :

Competitors :

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.

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.


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”.


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.


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.


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.


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.


Suguna’s Network:

• CHANDIGARH

• DELHI

• LUCKNOW

• JAIPUR

• KOLKATA

• CUTTACK

• RAJAMUNDRY

• NAGPUR

• ANAND

• NASIK

• PUNE

• SECANDERABAD

• VELLORE

• BANGALURU

• COIMBATORE

• MADURAI

• UDUMALPET


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


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


ORGANIZATIONAL ORGANIZATIONAL ORGANIZATIONAL ORGANIZATIONAL

STRUCTURE STRUCTURE STRUCTURE STRUCTURE


3. ORGANIZATIONAL STRUCTURE:

Flow Chart No:-1


FUNCTIONS OF FINANACE FUNCTIONS OF FINANACE FUNCTIONS OF FINANACE FUNCTIONS OF FINANACE

DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT


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.


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


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.


• 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.


MARKETING DEPARTMENT MARKETING DEPARTMENT MARKETING DEPARTMENT MARKETING DEPARTMENT


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.


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


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.


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.


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


Threats:

� By purely vegetarian peoples

� By low price off vegetables

� By fat contents in chicken

� Threat of competitors


FUNCTIONS OF HUMAN FUNCTIONS OF HUMAN FUNCTIONS OF HUMAN FUNCTIONS OF HUMAN

RESOURCE DEPARTMENT RESOURCE DEPARTMENT RESOURCE DEPARTMENT RESOURCE DEPARTMENT


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


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.


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.


FUNCTIONS OF FUNCTIONS OF FUNCTIONS OF FUNCTIONS OF PRODUCTION DEPARTMENPRODUCTION DEPARTMENPRODUCTION DEPARTMENPRODUCTION DEPARTMENT T T T


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


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.


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

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

grading

28-56 days Control growth within each graded population

56-70 days Stabilize populations to achieve correct incremental

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

days Achieve correct incremental growth

140-154

days Give first light increase

140-161

days

Achieve correct incremental growth emphasizing

uniformity of sexual maturity


161-210

days

Increase feed in response to egg production, bodyweight

gain and egg weight gain

210 days-

depletion

Control bodyweight gain and egg weight by removing

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:

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

Retailer

Wholesaler

Farmer

Company


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.


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.


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.


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,


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.


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,


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


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.


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.


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.


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.


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


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.


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.


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.


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.


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


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


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:


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


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


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


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


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


FINDINGS AND FINDINGS AND FINDINGS AND FINDINGS AND

SUGGETIONSSUGGETIONSSUGGETIONSSUGGETIONS


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,


CONCLUSIONCONCLUSIONCONCLUSIONCONCLUSION


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.

41632146-K-YUVARAJ-098001166060

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