Productivity improvement & cost reduction in poultry farming
27 May 2020
  • Client description: A large Indian poultry producer client, with a client base across India and presence across modern trade and general trade
  • Opportunity: Improvement of chicken farming productivity in India
  • Margin pressure for the client had been building as input costs and labor costs had increased substantially over the last 5 years. The client wanted to benchmark costs to find out levers for cost reduction
Our Approach
  • Conducted thorough analysis of Indian poultry companies to understand the market structure and benchmark costs for the client
  • Conducted ~15 in-depth discussions with the management team, divisional heads and sales team across geographies to understand the positioning of products, competencies, and outlook
  • Conduced ~25 in-depth discussions with industry stakeholders to understand opportunities in the market
  • Analyzed data to understand sales, margin, customer churn and dealer market
  • Conducted in-depth analysis of data to understand levers of cost in different functions – procurement, farming, farm management, logistics, and sales
  • Benchmarked Indian poultry industry with global best players to find the gap in productivity 

Key Insights / Outcomes

Client gained actionable inputs for cost reduction from the benchmarking with competitors

In-depth analysis of poultry farming practices led to suggestions to improve yield for the client

Praxis Value Delivered 
  • Successfully managed to improve the yield of the poultry farm by >15%
  • Additionally, identified the cost levers which were contributing to the inefficient cost structure and suggested the approach to reduce cost by >10%
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