October 11, 2006

Indian poultry farm gets US$11 million foreign investment

The International Finance Corporation (IFC) Tuesday (Oct 11) announced a US$11 million investment in a Tamil Nadu poultry farm.

IFC, a subsidiary of the World Bank, would pick up five percent equity in Coimbatore-based Suguna Poultry Farms Ltd, a company spokesperson said.

In 2005-2006, IFC invested US$400 million in Indian companies with rural interests and has provided seed capital for various start-ups in the country. 

For the next financial year, the company would be investing about US$500 million in the Indian agro industry and similar ventures, the spokesperson said.

Since 1956, IFC has provided over US$4.3 billion in loans and equity to private sector companies in Asia, of which one-third has been in India.

Suguna is one of the few major poultry integrators in India and has a capitalised value of US$240 million.

IFC's investment would help the company compete internationally and would benefit 10,500 contracted poultry farmers, the spokesman said, adding the IFC focus would remain on medium and small companies.

B. Soundarajan, Sugana's managing director, said the company had a supply network of 11,000 poultry farmers in Tamil Nadu, a number which is expected to double in 4 years. 

Sugana plans to convert at least half of India's poultry market, currently dominated by live bird sale, into the processed food sector, Soundarajan said.