Strategic Decisions in India's Feed Industry
This article analyzes decision-making in the Indian feed industry, highlighting evolving challenges in pricing, credit, and supply chain management amid volatility, regulation, and digital transformation.
Q1. Which roles have required you to make irreversible or high-cost decisions under uncertainty, and what scale of P&L, volume, or farmer base were you directly accountable for?
In my roles with Suguna Foods and Japfa Comfeed & the nutrition industry, I have handled full P&L responsibility across multiple states. This included pricing decisions, volume planning through Distributor Networking, farmer engagement program, margin management, and working capital control in a highly volatile feed business.
The scale—monthly business of 22–38 Cr, with a wide distributor network and direct connection to a very large farmer base. Because of this, most decisions—especially around pricing, credit, and inventory —keep the objective of customer retention, which impacts both market share and profitability.
One situation I clearly recall is the sharp increase in soybean prices. Within a single quarter, input costs rose by close to 20%, and the pressure to increase in the market at once was likely to lead to a quick loss of volume; also, delaying the decision would hit margins.
I worked with a more balanced approach, based on past behavior—Farmer's reaction to price increases and how the competitor responds.
Based on the situation, increased prices in two steps rather than one, which…
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