Interview: Market recognition comes from quality advantages

Incorporated in 1999, Qingdao Hailir Pesticides and Chemicals Group is a government appointed enterprise engaging in manufacturing, researching and marketing of pesticide products. Through protracted and unremitting efforts for over a decade, Hailir Group has become a large agrochemical company in China with annual revenue of approximate 1 billion Yuan. By introducing fully-automated equipments and process flows of imidacloprid, acetamiprid, tebufenozide, emamectin benzoate, as well as its R&D investment on premixed, Hailir Group has won its position of the top rank brand in China’s competitive pesticide industry. The company has 6 patents and 34 other in processing. Agropages talked with Mr. Ge Yaolun, Chairmen of Hailir Group to have a comprehensive and in-depth understanding of Hailir Group.

Mr. Ge displayed his foresight when he talked about Hailir Group’s response to the market downturn. As early as two year ago, Hailir had anticipated the decrease in pesticide market as fewer outbreaks of the insect and disease thanks to the new products and improved levels of cultivated management and control. Therefore, Hailir Group strategize is market plan of expanding market share through its quality products and field technical services. It is forecasted that Hailir will gain a sales growth of 20% for its formulated products in 2010.

Mr. Ge regards the depression in recent year has brought great opportunities for industrial consolidation. Some small size companies has struggled for their poor capital and products accessibilities and vulnerability caused by the policies, which make superior and ambitious players more easily to gain their market share and influence through M&A activities, particularly for the listed companies. Survival and development in current circumstance requires not only good financing, but also innovative products, as well as good service.

As a leading company in China, Hailir Group always attach importance to research in its development. The R&D investment accounted for 5% of its total expenditure. Mr. Ge explained Hailir Group’s proactive and innovative strategy of R&D. Through persistent improvement of products’ quality, Hailir Group has gained its recognition by the industry. He also ascribed Chinese companies’ “me-too” pattern to lacking sense of long-term strategy.
 
To answer to the call of the government’s HSE polices, Hailir has appointed special personnel dealing with HSE affairs to promote the safety consciousness of their staff. Also, Hailir increased its investment on environmental protections, such as waste-water treatment facilities and other infrastructures.

Hailir has established its short-term goals of becoming a listed company in 2012 by improving its management and increasing its revenue, as well as its long-term development strategy of setting up its international brand images in next 5 or 10 years.

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