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Every 7th egg consumed in india comes from the chicks produced by the Andhra Pradesh based Srinivasa Hatcheries, which boasts of a mamoth 99.50% market share with 3 eggs per capita per annum for the population of the country.

Srinivasa Hatcheries was set up in 1978, and has, over the years, earned the reputaion of being the only breeding and fram management company in India to adopt international standards of quality, hygiene, and efficeiency.

With a wide network of distribution and monitoring requirement at a national level, Srinivasa Hatcheries became the first poultry outfit in India to implement SAP toward the middle of 2005.

The idea behind deploying a SAP-powered SOA structure came about after internal brainstorming amogst the senior management of the hatchery group, along with consultants on business intelligence and best practicies. The need for implementation was summed up as:

To consolidate a number of divisions under one financial and logistics system
To give the mgmt visibility across key result aress of the effective manner
ensuring reduction in work redundancy
Ensuring the reporting requirements of the poultry
Industry were made online and realtime

Snapshot
Srinivasa Hatcheries
Agriculture

Business Problem: Tracking of profits, distribution, and wastage

IT Solution: mySAP ERP 6.0 to help ease business process

Impact: Reduction in time to market, consolidate, and consequently, profit margins.

The company zeroed in on the Hyderabas-based firm, Intelligroup to do the deployment, and the project was christened as project ASTRA (Advanced Systems to Rejuvenate Actvities), as part of which a provision was created within the planned architecture to recognize the Birds (current asset) to be treated akin to a 'fixed asset' toward ensuring better realization of ROI. This was the first but vital transition and hailed by experts as a first in the poultry industry, where profitability was co-related to the chickens being the fixed asset, and implementations were planned to increase efficiency in the supply chain and distribution processess.

The mySAP ERP 6.0 deployment was aimed at managing the simultaneous rollout across all sub-sets of the product, which contained the core modules of FI, CO, MM, SD, PP, and QM, in addition to reporting requirements that are achieved through custom development to align industry metrics with actual available metrics.

Managing the rollout

What is unique about poultry as an industry in terms of IT deployment?

This industry has certain characteristics unique to it: mainly the creation of co=products, which have an economic value. This makes it all the more difficult to track profits, distribution, and wastage. We cannot afford time taken to replicate the process for each by-product, and at the same time, each neeeds optimum attention. Hence, these additional cycles had to be incorporated into the value-creation process.

How have you gained from the deployment?

Our gains canbe measured at two levels: one, we are the first poultry and livestock group in the country to have implemented SOA architechure. Second, a lot of transparency leading to critical insights into all business processes, big and small, involved in management, operatiions pertaining to poultry and its by-products. A systematic approach to manange these processes through IT has ensured reduction in time to market, consolidate, and consequently, profit margins.

Any plans for future IT deployments?
AS of now, we have deployed the state-of-the-art SAP 6.0 based architecture. We are consolidaing on this deployment, but since we've been the first to adopt It and center it around our industry, we are constantly on the lookout for future technologies that can be bundled with our current implementation, or even an independent one.

Rayadu chitturi
CEO, Srinivasa Hatcheries Group