Diversification and growth strategy: Agro-chemicals to Biologicals - expanding Asia and Africa presence.Title Description
Sathguru helped an Indian agro-chemicals company with focus on international markets, identify potential products in the biological segment based on market requirements and potential. Sathguru also helped prioritize key markets in Asia and Africa and strategically take to market relevant bio-input products that led to business diversification and geographic expansion.Challenge/Problem statement/Situation analysis
Our client, a large manufacturer and global exporter of Agrochemical products was witnessing decline in growth due to saturation in the agro-chemical segment and was keen to diversify into biologicals to become a holistic agro-input provider catering to global markets for both chemical and biological inputs. The management of the organization sought assistance in developing a new vertical for biologicals and develop a market expansion strategy for Asia and Africa.Scope
The scope of Sathguru’s engagement included:1. Review regulatory frameworks for biological inputs in Africa and Asia
2. Identify strategic markets in the regions.
3. Create a product portfolio for maximum market penetration.
4. Develop a business plan for innovation fuelled sustainable growth.
Sathguru’s approach was to categorize markets based on regulatory stringency and direct biological input products to specific high value crops to create a product niche in the targeted markets and also explore acquisition of advanced bio-input products for the company to become innovation driven market leader.
To achieve this, Sathguru:a) Performed internal assessment of the company to understand their current strengths, product portfolio and distribution capabilities in Asian and African markets.
b) Analyzed the African and Asian markets for potential of biological input products and regulatory requirements to identify key markets.
c) Developed a product portfolio suitable for identified markets and recommended potential sources to access products not present in their current portfolio.
d) Conducted market landscaping to identify and suggest key product distributors in these markets.
- Sathguru made specific recommendations to implement a focused product to market approach to ensure success and growth in new markets.
- Sathguru recommended a crop and geography based product portfolio with suggestions on product additions to and deletions from their current portfolio.
- Sathguru recommended 5 key markets each in Africa and Asia based on regulatory requirements and potential for biologicals to ensure product adoption and maximum market penetration.
- Sathguru recommended and facilitated access to innovative biological input product providers globally to address market requirements and sustain growth.
- Sathguru recommended select product distributors to drive growth in each of the identified markets.
Our client diversified into biological input segment with focused marketing and product approach to establish itself in strategic Asian and African markets.