Chennai, October 10, 2006—International
Finance Corporation, the private sector arm of the World Bank Group, will
make an $11 million equity investment in Suguna Poultry Farms Limited.
Headquartered in Coimbatore, the company is pioneering an integrated poultry
business model in India.
IFC’s project with Suguna will help the company expand its breeder farms,
hatchery, and feed mill capacity as part of its growth strategy. IFC will
also support the company’s supply chain management as it seeks to purchase
feed directly from farmers.
Lars Thunell, Executive Vice President of IFC, who is currently visiting
India, said, “IFC’s investment in Suguna will support the company’s
efforts to expand and become internationally competitive, and will create
economic opportunities for about 10,500 poultry farmers.”
While signing the document, B. Soundararajan, Managing Director, Suguna
explained, “We see in IFC a long-term investor and a partner who will
enable us to implement our growth strategy and benchmark us against poultry
companies in other countries.”
“IFC’s investment in Suguna, its first in India’s poultry sector, is
in line with IFC's focus on enhancing rural productivity. In addition,
IFC will work with the company to help it establish corporate governance
best practices,” explained Iyad Malas, IFC’s Director for South Asia.
The International Finance Corporation, the private sector arm of the World
Bank Group, is the largest multilateral provider of financing for private
enterprise in developing countries. IFC finances private sector investments,
mobilizes capital in international financial markets, facilitates trade,
helps clients improve social and environmental sustainability, and provides
technical assistance and advice to businesses and governments. From its
founding in 1956 through FY06, IFC has committed more than $56 billion
of its own funds for private sector investments in the developing world
and mobilized an additional $25 billion in syndications for 3,531 companies
in 140 developing countries. With the support of funding from donors, it
has also provided more than $1 billion in technical assistance and advisory
services. For more information, visit www.ifc.org.