The Hindu : Business : IFC to pick up stake in Suguna Poultry

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Wednesday, Oct 11, 2006
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IFC to pick up stake in Suguna Poultry

Staff Correspondent

11,000 contract farmers will benefit

— PHOTO: BIJOY GHOSH

CREATING OPPORTUNITIES: B. Soundararajan (left), Managing Director, Suguna Poultry Farm, and Lars H. Thunell, Executive Vice-President, International Financial Corporation, at a press conference in Chennai on Tuesday.

CHENNAI: Washington-based International Finance Corporation (IFC) proposes to invest over $500 million during this fiscal in India and has identified infrastructure, agriculture and manufacturing as major thrust areas.

Addressing a press conference here on Tuesday, Lars Thunell, Executive Vice-President, said during last fiscal IFC had invested $400 million in India. It had identified airports, ports and power projects as thrust areas.

Stating that India was the fourth largest country in the world in terms of growth prospects, he said IFC had a portfolio of $1.4 billion. Of this, nearly 70 per cent were in the form of loans and balance equity. Mr. Thunell was here to sign an equity participation agreement with the Coimbatore-based Suguna Poultry Farms Limited. IFC, he said, would pick up five per cent equity and invest $11 million in the company.

He said "IFC's investment in Suguna will support the company become internationally competitive and would benefit around 11,000 contract poultry farmers by creating economic opportunities for them."

Managing Director of Suguna B. Soundararajan said the alliance with IFC would help the company expand its breeder farms, hatchery and feed mill capacity as part of its growth strategy. IFC would also support the company in the area of supply chain management as the company sought to source feed inputs directly from farmers, he added.

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