World Bank grants $11 million to Indian farm

12-10-2006 | |

The International Finance Corporation (IFC), part of the World Bank, has finalised the conditions of its $11 million investment in a Tamil Nadu poultry farm in the south of India.

IFC will pick up five percent equity in Coimbatore-based Suguna Poultry Farms, which is pioneering an integrated business model, a company spokesperson said.
In 2005-2006, IFC invested $400 million in Indian companies with rural interests and based in two-tier cities. In 2006-2007, it plans to invest about $500 million in Indian agro industry and similar ventures, the spokesperson said.
Since 1956, IFC has provided over $4.3 billion in loans and equity to private sector companies in Asia, of which $1.4 billion has been in India, which is fourth on the list of investment countries.
“IFC investment in Suguna will help the company become internationally competitive and will benefit around 10,500 contracted poultry farmers by creating opportunities for them,” Lars Thunell, IFC executive vice-president said.
Mr B Soundarajan, Sugana managing director, said the company plans to bring another 12,000 poultry farmers under its corporate umbrella.
“In India, the market is dominated by live bird sale,” Soundarajan said. “Our objective is to get at least 50 percent of the market into the processed food regime.”

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