AgroPages-Pakistan Suncrop Group: Pursue a strategy of branded product development, thrust on registration and aggressive marketing-Agricultural news

Mickey Shan

Senior Editor; China Marketing Director

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The biggest partnership in agrochemical business in Pakistan: Suncrop Group acquired shares in Ali Akbar Group

Recently, Pakistan's leading agrochemical company Suncrop Group has acquired stake in Ali Akbar Group and has established Pakistan's largest cooperation in agrochemical industry in history. After the acquisition, Suncrop's strength in pesticide research, production and seed business will be combined with Ali Akbar's well-established brand and national distribution system, to bring more efficient and extensive agricultural products and services to Pakistani farmers.

Although the agrochemical market in Pakistan is relatively small, it is growing rapidly. In 2018, the value of the Pakistan plant protection and special fertilizer market was $ 484 million, with an annual growth rate of 18%. In such a high-growth market, how will Suncrop, as a leader, create more value for itself and the market through acquisition strategies? With the question, AgroPages had an exclusive interview with Dr. Shafique, CEO of Suncrop Group, who introduced us to Suncrop's development strategy.

AgroPages: Please briefly introduce Suncrop's history and business.

Dr. Shafique: Suncrop Group started its business in 2000 as a distributor of agrochemicals, making step-by-step developments and offering products and services nationwide.

Now Suncrop Group comprises of a diversified group of seven companies having its Head Office in Multan, and has the highest number of employees in our industry, more than 2,200. We are one of the leading ISO 9001:2000 Quality Management certified Agro based group serving as Manufacturers, Producers, Formulators, Importers and Distributors.

Suncrop’s overall business is made up of 70% pesticides, 19% seeds and 11% micro fertilizers. Our annual sales now is over USD100 million, with some 16% of total market share in 2019. Suncrop deals in importing, formulating and distributing all pesticides and fertilizers, as well as the import and local production of seeds of various crops. We are a leader in producing hybrid rice seeds in Pakistan, as well as wheat, cotton are other major crop seeds.

Besides the tremendous expansion of our business, Suncrop Pesticides is providing best quality products and services to farmers through franchise network. It was a milestone for the group to achieve a massively broad network of more than 400 franchises across Pakistan.

AgroPages: What is the company’s core competitiveness to stand out the competitors?

Dr. Shafique: Suncrop offers a wide product range for more than 30 crops, vegetables and orchards nationwide, including herbicides, insecticides and fungicides. Suncrop also has the most qualified and skillful technical field staff who provide farm advisory services and educate farmers at their farms.

We working closely with customers in the market place, Suncrop Group recognizes the requirement for the highest level of support in product research, development and registration. Capability in applied R & D is one of Suncrop Group’s major corporate strengths. R & D strategy is to continue to invest in innovative formulations that are environmental and user friendly, which are essential to the growth of crop protection companies.

We have to aim to accurately meet the needs of our markets across the country through the development and introduction the existing and new products. These products are developed to meet and exceed our customer’s expectation in the area of quality and performance. We are constantly striving to acquire new products that will beneficial for our customer.

AgroPages: What is the company’s strategic plan for the acquisition of Ali Akbar? What synergies will happen after the acquisition?

Dr. Shafique: Suncrop Group Pakistan has been the frontrunner in the industry for several years, earning this position due to its considerable business channel and being close to farmers through effective field advisory services, as well as due to its consistent business policies, strong support for pesticide suppliers, good prospecting and forecasting, on-time product arrangements, wide product range, leading services that meet the needs of the market, and strong financial arrangements.

Similarly, the Ali Akbar Group has a long-established corporate reputation among farmers and other stakeholders, as well as well-established brands and distribution networks around the country.

A partnership this significant will be conducive to efficient business in the industry. It will also be helpful in achieving stability and increasing the industry’s flexibility, to meet the rapidly changing needs of farmers and ensuring them higher yields and profits.

AgroPages: How did Suncrop build its supply chain? What impact does China’s current epidemic situation have and how will you cope with this?

Dr. Shafique: Suncrop has a good market forecasting system and market intelligence. We usually have buffer stocks and plan at least six month earlier than the competition. Suncrop has created long-term business relations with major suppliers and manufacturers of agrochemicals, and we believe that we will not have any supply shortages.

AgroPages: What are Suncorp’s medium and long-term development plans?

Dr. Shafique: Suncrop Group has pursued a strategy of continuous expansion, branded product development, thrust on registration and aggressive marketing.

Our medium-term development plan is to further increase the availability of our range of products and services according to the changing needs of farmers, as well as to enhance the capacity our production lines to meet ambitious targets and maintain product quality.

The further induction of high value seeds for other crops, as well as increasing the capacity of the local manufacturing of various chemicals and exporting them to other countries, are future prospects.