--By Pinaki Roy

 

An initial investment of Rs 1 million made in 2001 was the first step towards making Shreenagar Agro Farm (SAF) Pvt Ltd the big name it is – a company with an estimated current net worth between Rs 500–600 million.  Satish Shrestha, the Managing Director of SAF, entered the livestock business in 2001 while still working with the Citibank. A BCom graduate from the prestigious Sydenham College of Commerce and Economics in then Bombay, he worked as Relationship Manager at the Kathmandu office of Citibank from 1997 to 2002. 

 

Gems Poultry, an integrated farm spread over 15 ropanis of land in Gongabu, Kathmandu was looking for a partner. Shrestha took the opportunity to become a partner in the farm that comprised of a fish pond, a small feed making facility and a commercial broiler unit. 

 

Decision Time

In 2002, Citibank decided to close down its office in Kathmandu and offered Shrestha a job at its office in Bangalore, India. While he was still pondering over the chance to relocate, his partner at Gems Poultry offered him to take over the company entirely. It got him thinking but eventually he decided to stay back and buy out the company. He paid the agreed amount over a period of three years and also renamed the enterprise as Gems Agro Livestock Industries Pvt Ltd. Having dabbled the banking job and the livestock business simultaneously for a year and taking over the company in full later helped Shrestha launch his flagship company – Shreenagar Agro Farm – in due course of time.

 

The Company

Shreenagar Group comprises of three companies – Shreenagar Agro Farm Pvt Ltd, Sunaulo Agro Farm Pvt Ltd, and Gems Agro Livestock Industries Pvt Ltd. These companies have emerged as an agri-business conglomerate with activities ranging in Poultry Breeder Farming for broiler and layer, Hatchery for production of broiler and layer day-old-chicks, Feed Mill for production of mash and pellet feed for poultry & other livestock and Commercial Farming of broiler and layer as well as distribution of table eggs (regular and branded). 

 

SAF moved business to Butwal in 2006-07 due to space constraint in the capital, a result of massive urbanization, which was hindering the expansion of his industry. The company stands out due to its technological advancement, research, continuous investment, professionalism and adequate exposure when compared to its contemporaries in the domestic market. It employs 150 people at all its facilities put together.

 

 

 

Learning Curve

Shrestha makes regular visits to India for observing development in similar business areas. “I also visit Thailand often which is the heart of agri-business sector in this region,” he says. He also travels to Holland at regular intervals to update himself with technological advancements in the sector. He adds, “What has become obsolete in regions such as Europe is coming to our part of the world now.”While certain learnings are implemented immediately, some others are considered over a longer period of time, he says.

 

Exposure to successful agri-business outlets abroad has taught the company to focus on bio security. It has ensured distance between its poultry units, cleaner environment, maintenance of hygiene protocols etc. Another important aspect is the placement of its various farms. For example, the growing flock is based in Butwal while the production flock is at Palpa. 

 

Golden Egg

Shrestha always knew there was a market for branded eggs in the country. “A cooking experience at my home kitchen sparked the idea of dating eggs to ensure fresh product for the consumers,” he informs. Around mid-2012, SAF launched ‘Golden Egg’ in containers that also mentioned the timeframe within which the eggs were required to be consumed. 

 

Golden Egg started with sales of 1,000 eggs per day which increased to 40,000 eggs per day in about a year-and-a-half’s time period. The company has now set a target to reach sales of 100,000 eggs per day by the end of 2014. Currently, Golden Egg is available in packs of 6, 12 and 30 eggs. The Golden Egg containers have the ‘best before’ dates on their covers and are sold via hundreds of retail outlets. 

 

Sales Strategy

Having priced Golden Egg at a premium, SAF targeted consumers who were more likely to be quality conscious. Hence, the brand was introduced in department stores and various marts to begin with. The company is currently awaiting the results of a research on consumption trend of Golden Egg following which it will be selling branded eggs individually. The egg shells will be individually marked with Golden Egg stamp and available at the convenience stores and “kiraana pasals” as well. 

 

“Sourcing eggs from local farmers in various locations besides our own farm has multiple advantages,” says Shrestha. He adds that while the idea provides business opportunities to the farmers, it also saves him the expenses of opening and maintaining farms. SAF continues to get its supply of products from alternate locations even at times when a certain part of the country witnesses a problem. The company imparts trainings to enable farmers run their respective farms efficiently and adhere to quality standards set by the company.

 

Looking Ahead

Among its future plans, the company is continuously looking at integration efforts, reveals Shrestha. He hopes to reach fresh stores and ensure greater presence in retail over the next couple of years while also mulling over adding slaughtering and processing aspects of the livestock business. 

 

“We are also exploring the idea of launching retail outlets tentatively named Golden Fresh Mart which will have four components: poultry & meat products (includes eggs), dairy production, bakery products, and vegetables & fruits,” Shrestha says. He elaborates that the idea is to provide end consumers with an array of products under the same roof. He quickly adds though that it all depends on having like-minded partners who already hold an edge in their respective business segments. 

 

Shrestha always dreamt of running a volume based industry in a conventional manner and being able to make a difference. Success has come along the journey, he says and advises aspiring entrepreneurs to keep on striving and continue in believing one’s instincts.