Suguna Foods forays into masala business

To leverage its strength in the chicken business, Coimbatore-based poultry products company Suguna Foods announced its entry into the chicken masala market on Thursday through outsourced model.

“We will be outsourcing it from one of our suppliers in Chennai and sell it through our existing distribution network; it is a Rs 20,000 crore business in India annually, with south India accounting for almost Rs 4,000 crore,” general manager – sales & marketing, consumer products, V K Mohan said here on Friday.

The Rs 4,800 crore (2012-13 turnover) company hopes to see revenues flowing in from the venture from the second year onwards, he added.

The company is confident of achieving revenues of Rs 5,500 crore this financial year, as the broiler chicken market in India, estimated at Rs 37,000 crore is growing at ab0ut 9 per cent every year. “For us, about 95 per cent revenues comes from this segment,” Mohan said.

The south and western parts of India account for almost 60 per cent of the market, he added. The company also exports its products to West Asian and European countries. It plans to launch more food products in the near future, Mohan said.