42834 - Suguna III

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Summary of Investment Information

Project Number

42834

Company Name

SUGUNA HOLDINGS PRIVATE LIMITED

Date SPI Disclosed

Mar 4, 2020

Country

India

Region

South Asia

Projected Board Date

Mar 27, 2020

Environmental Category

B - Limited

Status

Active

Last Updated Date

Oct 25, 2025

Department

Regional Industry - MAS Asia & Pac

Industry

Agribusiness and Forestry

Previous Events

Approved : Mar 27, 2020
Invested : Jul 20, 2020

Sector

Poultry Farming

Additional Project Attributes

Blended Finance

Project Description

The group of companies known as the Suguna Group consolidated under the holding company Suguna Holdings Private Limited (“SHPL” or the “Group” or “Suguna”) was initially established in 1984 and is one of the leading poultry integrators in India with operations covering all areas of the poultry sector. Suguna’s fully integrated operations cover broiler and layer farming, hatcheries, feed mills, and processing plants across 20 Indian states and one union territory, and have an overseas presence in Sri Lanka, Bangladesh, and Kenya. The main operating company under SHPL is Suguna Foods Private Limited (SFPL) in India, which generates over 97% of the Group’s revenues.

Suguna is planning (i) a capacity expansion consisting of the construction of poultry infrastructure including potentially a hatchery, processing plant, poultry environment-controlled shed, premix plant, and related poultry assets, as well as incremental working capital financing, through a US$42.9 million investment at SFPL in India to further expand its operations in northern and eastern India, primarily in Uttar Pradesh, Odisha and West Bengal; and (ii) the construction of feed mills, breeders, and hatcheries in Bangladesh and Kenya through a US$15.9 million investment in Suguna Food and Feeds Bangladesh Pvt. Ltd. (“SFFBPL”) in Bangladesh and a US$8.4 million investment in Suguna Poultry (Kenya) Limited (“SPKL”) in Kenya in order to capitalize on the growing economy and expanding poultry sector in both countries, for a total overall investment across India, Bangladesh, and Kenya of US$67.2 million (the “Project”)

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	53.92
Equity

Development Impact

1. Greater farmer incomes: The most significant, expected Project-level outcome is the impact on the incomes of poultry farmers who participate in Suguna's outgrower (contract farming) model or use the Group's inputs for independent poultry production. 2. Increased consumer access to affordable and high quality food products: Depending on how the final product composition evolves as a result of the Project to what is currently available in the market, consumers may benefit from increased access to high-quality, affordable poultry products. 3. Market creation: At the market level, the Project is expected to contribute to integrating farmers into the poultry value chain by transferring its experience and business model to Bangladesh and advancing the sophistication of contract farming in this underdeveloped market through demonstration and replication.

1. Financial additionality: The Group is growing into a global poultry player by expanding beyond its current operations in India. To help the Group achieve its growth targets, the group needs to undertake increased capital expenditure, both domestically within India and in the countries to where it hopes to expand. The proposed Project entails the provision of long-term funding in these various geographies, thus giving the group some amount of flexibility in capital allocation. 2. Non-financial additionality: a) Standard setting: Through this Project, the Group is expected to adopt and implement appropriate standards in labor management, production, as well as supply chains and raw material procurement, particularly on food safety standards. The implementation of IFC Performance Standards including food safety standards across the group's target market will help to instill best practices in one of the organized leaders in the broiler market in India as they look to expand into newer markets such as Bangladesh and Kenya; and b) knowledge, innovation, and capacity building: IFC is able to provide the Group with global industry knowledge in poultry, food processing and agribusiness and help to facilitate the exchange of ideas with other IFC clients, thus enhancing Suguna's overall operational know-how and knowledge of the latest technological advances.

E&S Category Rationale / Risks and Mitigation

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability as it is expected to have limited environmental and social impacts which are expected to be site-specific, none are expected to be significant, and can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria as described in the following sections.

Contacts

For Inquiries About the Project, Contact

Suguna Holdings Private Limited
Deepak M. Row
Vice President, Finance and Strategy
+91-422-4346939
deepak@sugunaholdings.com
1020, Avinashi Road, II floor, Above AUDI Showroom, Coimbatore 641018 India
www.sugunaholdings.com

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Local Access of Project Documentation

1020, Avinashi Road, II floor, Above AUDI Showroom, Coimbatore 641018 India

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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