Keggfarms-Which Came First,

the Kuroiler or the KEGG

Group 8
Gaurav Parsheera 19/018
Shashank

19/049

NC Praveen

19/027

Nikhil

18/D/093

Afreen Shaikh

19/047

Keggfarms A Dream Realized

Keggfarms was
founded by Vinod
Kapur in 1967

Kapurs lifelong
dream: Dual focus Building a profitable
company as well as
addressing the needs
of poor, rural
villlagers.

Engineered a breed
of chicken
specifically for rural
areas which produce
twice as much meat
and five times as
much eggs

Despite the
remarkable
breakthrough, less
than 3.5% of poultry
producing rural
households
penetrated. It would
take decades to
achieve Kapurs
dream of significant
social change at
present growth rate.

Reasons Behind Keggfarms Success

R&D Center in their headquarters,
Gurgaon
After numerous iterations and years of trial and
error, successfully cross-bred from four
different genetic lines to yield the first
generation of Kuroilers.
Produced a specifically relevant hybrid breed
for rural areas.

Exceptional Distribution System

Developed a distribution system that
conveniently reaches the doorstep of
households in the remotest villages
Through voluntary interdependence,
stakeholders at each stage sustain a system
that benefits every one of them.

KeggFarms Products
Kuroiler
Kuroiler
FFG

Keggs

Kuroiler
Appearance

Multicolerd- survival & perception ( belief that white chickens are inferior)

Feed

It thrived on household waste, scarps, bugs, insects etc. & thus did not compete with
the poor, rural villagers for grain or require any special feeding

Care

No special husbandry methods, protection, medicines or sheltering required. Very

economical. Genetically resistant to diseases.

Behaviour

big, aggressive and wily enough to fend for itself against predators.

Advantages

Kuroiler

Kuroiler
Kuroiler is
is meatier
meatier and
and

more productive
productive than
than
more
conventional rural
rural
conventional
chickens
chickens
Laid
Laid 150-200
150-200 eggs
eggs during
during

their 12-16
12-16 month
month egg
egg
their
laying period
period
laying
20 eggs
eggs per
per month
month
20
Hens
Hens &
& roosters
roosters attained
attained

2.5kg &
& 4kg
4kg in
in 12
12 months
months
2.5kg

Typical
breed
Small
Small &
& less
less productive
productive

Laid
Laid 35-40
35-40 eggs
eggs over
over 12
12

month period
period
month
Hens
Hens &
& roosters
roosters attained
attained

1kg &
& 1.2kg
1.2kg in
in 12(hens)
12(hens) &
&
1kg
6 months
months (rooster)
(rooster)
6
respectively
respectively

Kuroiler meat was vastly more tasty than both industrial

boiler and conventional backyard chicken

Kuroiler FFG

A fast growing
variety of
Kuroiler for meat

This variety
required less
feed per kg of
weight attained

Sold at a much
higher premium
over normal
broilers

Ideal for small

scale
professional
farmers with
income pf
Rs50,000 &
above

Keggs are Hatched

In order to diversify to more profitable businesses with

sustainable advantages, the notion of branded eggs for the
high end of urban market was conceived in the early
2000s.
The tastier rural barnyard eggs produced in small quantities
cannot make it market, availability too low and dispersed as
well as too expensive.
In large urban centers eggs are white and bland and
competition is for price alone.
In 2002, Kapur started developing Keggs. These
test-marketed for two years in South Delhi and
being affluent areas.

eggs were
Gurgaon,

Keggs are Hatched

Keggs are highly delectable eggs with bright yellow yolk

No contaminants or antibiotics

Kept in refrigerated storage and reach retail stores within 48 hours

Reach consumer fresh within 3-4 days of production

Differentiation: Distinct shade of brown made visible in packaging for consumers

Direct Production cost for a six-eggs carton is Rs. 13. Stores buy these at Rs. 25.75. End user price fixed
at Rs. 30 for, twice that of regular eggs.
1400 cartons per day delivered to 70 major retailers, by 2007 aim to go up to 2000 cartons per day.

Chick Vendors
Purchase a lot of about 100
chicks from MU

DISTRIBUTIO
N
Keggfarms
distribution
centre

Their purchasing cost was Rs 20

and SP was Rs 30 per chick
Usually works 5 days a week
Use bicycle and special basket to
hold chicks
1500 total estimated vendors by
2006

Mother Units(MU)
MU owner buys 500-1000 chicks
every four week
Purchasing price from dealer was
Rs 9 per chick whereas SP to
vendors was Rs 18-20

Hatcheries
Deal
ers
Mother Units

Dealers
500 total Keggfarms affiliated
dealers
Purchase quantity ranged from
2000-5000 chicks
Unit purchase price range from
Rs7.5-Rs8 whereas unit selling price
was RS9 per chick
Delivery of 1000 chick lots to each
Rural Households
MUs

Chick Vendors

Over 7,00,000 rural households

raised Kuroilers

Rural Households

Their purchasing price was Rs30

per chick and SP for Kuroiler egg
was Rs 2.5 or more

Consumption or
Village markets

A Kuroiler hen lays 20 eggs per

month and about 150 eggs in 12
egg-laying months
They either bring their eggs to the

Challenges

Slow market
penetration with
reach less than
3.5% of poultryproducing rural
households with
meager $3.5mn
in revenues in
2005.

Limited
purchasing
power of rural
customers with
annual income
less than Rs
20,000.

Imitations of
Kuroiler and the
KEGG in rural as
well as Urban
market with
equivalent
market size that
of Keggfarms.

The imitations
not only effected
companies
revenue but also
exploited the
poor
households.

Establishment of
completely
separate
developmental
team, a separate
business unit
and gathering of
developmental
funds for
expansion.

Sticking with the

dual focus on
profitability and
addressing the
needs of poor.

Recommendations
Expand the Keggs business by
targeting and penetrating other
metro cities such as Mumbai,
Chennai, Kolkata, Hyderabad and
Bangalore.
With high margins, focus on Keggs
business for the next 3 years to
gain 1% of the total market.
Also focus on the Kuroiler FFG by
including mid-income level famers
who have relatively stable income
into the chain.
For three years, maximize profits by
focusing on Keggs and Kuroiler FFG.
Eventually, it will help finance the
expansion of Kuroiler business.

Recommendations

To tackle
the
Imitatio
n
Problem

For Keggs, Keggfarm can start

using egg marking to
distinguish it from imitators,
visible through packaging.
Inform the consumers
through newspaper
advertisement.
For Kuroiler, the problem is
far more complicated.
Creating your own supply
outlets or establishing a
brand spreading awareness
would mean incurring large
costs infeasible. There is no
immediate remedy for this
problem.