IFC invests $11 million in Suguna

International Finance Corporation (IFC), private sector arm of the World Bank group, has invested $11 million in Coimbatore-based Suguna Poultry Farms Ltd to take a five per cent stake in the company.

The IFC infusion in the form of capital is expected to help the company expand its breeder farms, hatchery and feed mill capacity. IFC will also support the company in the area of supply chain management as the company seeks to source feed inputs directly from farmers.

Addressing a press conference, B Soundararajan, managing director, Suguna, said IFC was a rural-oriented company and had enrolled 11,000 farmers on contract basis. As part of its expansion, the company plans to add 12,000-14,000 farmers by 2010.

"We expect that the partnership with IFC will enable us to get global technology," he added.

Executive vice-president of IFC, Lars Thunell, who is on a visit to India from Washington, said IFC's investment in Suguna would support the company become globally competitive and help its poultry contract farmers by creating economic opportunities.

Suguna, a family-owned company, clocked a turnover of about Rs 1,100 crore during 2005-06 and expects to end this fiscal with a turnover of Rs 1,400 crore.