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Since 2017, Shenzhen Noposion Agrochemicals Co., Ltd. (Noposion) and its subsidiary Shenzhen Tian Tian Quan Agricultural Service Co., Ltd. have consecutively taken control of five premium agrochemical distributors, covering crop circles such as rice and potato in Ningxia Autonomous Region, Shandong Province, Hainan Province and other places.
By controlling shares of these distributors, Noposion can form the business mode as integration of production, supply and marketing through the resources integration and build up the regionally leading service platform.
² On 23rd December, 2016, Noposion signed a contract to take control of Hainan Nuozenong Agricultural Development Co., Ltd.
² On 10th March, 2017, Noposion signed a contract to take control of Zhangjiakou Yihe Agricultural Materials Co., Ltd..
² On 6th April, 2017, Noposion signed a contract to take control of Ningxia Pingluo County Pingluo Ruixin Production Materials Co., Ltd..
² On 8th April, 2017, Noposion signed a contract to take control of Yantai Shuntai Plant Protection Technology Co., Ltd. (Yantai Shuntai Plant Protection).
² On 12th April, 2017, Noposion signed a contract to take control of Heze Haonuo Plant Protection (Haonuo Plant Protection).
Purposes of Noposion taking control of distributors:
With many years experience in the domestic pesticide formulation market, Noposion has known the comprehensive ability and development potential of regional distributors around the country well. Taking control of distributors can take advantages of their premium service and further gain the advantages of resource integration, realizing the integration of production, supply and marketing and improving the efficiency and quality of production.
In addition, the land transfer and introduction of the new pesticide management regulations will promote the concentration of growers and pesticide distribution companies while provide a favorable external environment for the further increase of market share. Currently, Noposion has leading scale of domestic formulation but enjoys huge room for improvement since it has only about 4% market share. The company expects to continue to solidify the leading position in the domestic formulation market by strengthening the control of the channel.
Reasons that distributors are willing to be controlled:
Distributors believe that cooperation with Noposion is conducive to get more market opportunities. General Manager of Haonuo Plant Protection, Liu Zongxi said that collaborating with Noposion helped them make more attempts and exploration in the talent introduction and entrepreneurship and innovation. Especially, by expanding the market from planting to harvest in large farm base and agricultural mechanization, comprehensive service platform of regional market can really come true.
Noposion’s focus after taking control of the distributors:
² Lu Boqiang, Chairman of Noposion, said on the signing ceremony that:“ The company will do three things next: first, to build a nationwide leading extension service that combines the online and offline;
² second, to set up an entrepreneurial mechanism that corresponds with the demands of new era, introducing talents to local agricultural production, like Master and Doctor who are willing to be farmers, agricultural specialist and agricultural service providers in the future;
² third, to construct a comprehensive large square for modern agricultural services, providing farmers production services and life services such as finance.”
At the same time, Noposion stressed that the powerful cooperation with regional excellent dealers didn’t mean to “control” them but to lead to a more open cooperation as well as provide better service and better products for the regional market.
More premium dealers will be taken control in the future:
It’s said that Noposion planned to take control of 40 dealers that distributed around the country in 2017. In addition, the company supports the development of rural financial business and at present, more than USD1.5 billion has been lent by Nongfadai and Nongtai Jinrong, which are subsidiaries of Noposion.
NOTES TO EDITORS
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