China's Noposion to cooperate with Makhteshim-Agan in retail outlets

China’s agrochemical company Shenzhen Noposion intends to cooperate with Celsius Property, the Dutch subsidiary of Israel’s Makhteshim-Agan in an AK Business (retail based marketing channel), according to an announcement by the board of Noposion. The cooperation is currently under the discussion between the two parties, official agreement is not signed yet.

As China’s largest pesticide formulation producer, Noposion has cooperated with distributors and retailers in setup of county-level dealership and town-level retail outlets to establish a national sales network backed up by county and town retail outlets. In the meantime a professional marketing team is cultivated to strengthen the differentiated sales to achieve a fast growth, which results in an achieved income of Yuan 1.6 billion in 2012.

In order to eliminate the shortcomings of the present distribution mode, Noposion took the lead to try the direct sale mode in Hai’nan Province, which is a direct sale of product to the agro-product retail outlets at town or village levels. So far the company’s direct sales has extended to a large number of provinces all over China involving many different brands. The direct sales income of the company in 2012 accounted for 40% of its total sales, having become one of the core business of the company.

Noposion has explained the reasons for the company’s input in this cooperation. It says in its announcement that Makhteshim-Agan is a world-wide crop protection industry player where the cooperation with whom will help to consolidate respective resources and share successful business experiences so as to enhance the AK Business which can reinforce the competitive edge of the company.

Makhteshim-Agan is share-controlled by CHEMCHINA, whose wholly controlled company-Celsius Property B.V. is planning an acquisition of the B-Share of Sanonda.