India's Suguna Poultry Farm Ltd.: Can it Go Pan-India with its Current Business Model?
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Code :BSM0051
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Region : India
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Introduction:The Indian poultry industry plays a prominent role in the agriculture sector contributing 2.5% to the country's GDP. In just a few decades, the industry has transformed from a backyard activity to a highly technology-driven industry. This rapid growth was aided by the development of the contract farming model. Adopting this model, the Coimbatore based Suguna Poultry Farm Ltd. (Suguna) stumbled upon its unique business model while trying to find a solution to the problems it faced in the course of its operations. It has successfully established itself in the Indian poultry industry and is currently the world's fourth largest player in the broiler segment. Its operations are, however, centred in the southern part of India. In 2008, Suguna announced its plans to expand across India along with its efforts to strengthen its backward and forward integration processes. With competition getting intensified, will the company be able to sustain its current rate of growth if it expands across the country? What possible challenges could the company face? |
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