In 1984, two brothers, B. Soundararajan and G.B. Sundararajan, set out on a humble journey with an investment of ₹5,000, starting a small poultry farm in Udumalaipettai, Tamil Nadu. Fast forward to today, Suguna Foods is a market leader in India’s ₹70,000-crore poultry broiler market, clocking a turnover of ₹9,155 crore in FY21.
The Beginning of a Vision
Soundararajan initially ventured into vegetable farming on his ancestral land but faced financial losses. A job at an agricultural pump company in Hyderabad exposed him to the challenges farmers faced, sparking an entrepreneurial idea. Returning to his village, he and his brother began selling chicken feed to farmers.
However, they noticed a problem—farmers had to rely on multiple vendors for different supplies like feed, rice husk, and medicines, leading to high costs and delayed payments.
The Birth of Contract Farming
In 1990, the brothers introduced the contract farming model to India’s poultry sector, a revolutionary idea at the time. Under this model, Suguna provided farmers with all the essentials—feed, medications, and chicks. Farmers only needed to rear the birds and return them to Suguna.
This simplified the cost structure for farmers, reducing their expenses from 14 cost centres to just four. It was a win-win model: farmers focused on raising healthy chickens, while Suguna ensured quality control and market readiness.
The Growth Story
Today, Suguna Foods operates in 18 states, working with over 40,000 farmers from 15,000+ villages. Their operations span B2B verticals like farms and feed, and B2C verticals like food and soya. Despite a pan-India and international presence, the majority of their revenue comes from South and East India.
With a 15% market share, Suguna Foods is on a mission to provide affordable quality protein to every household while uplifting small and marginal farmers.
The Legacy Continues
Soundararajan now serves as chairman of Suguna Holdings, while his son, Vignesh, leads Suguna Foods India as managing director. Together, they are steering the company toward greater heights, staying true to their vision of inclusive growth and innovation.
From a small village in Tamil Nadu to becoming a national powerhouse, Suguna Foods is a testament to resilience, innovation, and the power of community-driven business models.
What lessons do you take away from this incredible journey? Let us know in the comments!
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