Business Model – Avani Agro

Go Green Make a difference

Avani Agro has always maintained a strong belief in the importance of creating a comprehensive and integrated value chain framework from obtaining distribution across its different divisions and areas of operation. The strategic direction for the growth of the company’s portfolio of activities and transforming the operating model overtime is based on two crucial pillars:

Lateral Expansion

Vertical Integration

Acquire renowned expert players in the company’s different business verticals.
Consolidate operations to achieve economies of scale and ensure a landmark market position.
Ensure value chains generated are generated at the producer levels are extended into the consumers’ network
Offer a wider product range with improved quality and competitiveness to end-customers.

Engage in the entire agribusiness cycle from farming to marketing and activities in between
Ensure strategic independence and mitigation against market volatility and trading risks
Bypass intermediaries where possible and gain greater control over the supply chain elements
Ensure seamless delivery of products/services at lower costs and faster delivery timeframes

Strategy

Determined vertical integration and business portfolio (diversification) with a focused wider strategy

An integrated supply chain is a core competency that Avani Agro keeps on developing and stemming. We believe that it is integral to the business model fundamentals and success. We ensure ongoing investments in enhancing capabilities, through unifying progressive farmers. Moreover, Avani Agro is focused on diversifying its investment strategy and business portfolio by partnering with leading players across the farming domain and industries.

Farming

Avani AGRO owns, operates and manages a huge land bank of owned and leased lands in diversified geographies across the region for the farming and cultivation of various human foods, animal feed crops and animal farms. Investments made in farming land are made by careful selection of areas enjoying favourable climate conditions, easy access to irrigation water and high fertility soil specifications to ensure the best possible yields. As an organization with a focused farming mindset, Avani AGRO employs experts in the agribusiness sector and technical farming, ensuring alignment across horticulture and animal farms on the key mandate to:

Sourcing and Trading

In addition to managing its human food and animal feed and farm product categories, Avani AGRO is heavily involved in strategic sourcing of key commodities on behalf of its customers.

The key attributes that differentiate Avani AGRO as a key strategic sourcing and trading partner are:

Quality Management

Avani AGRO makes sure that quality is embedded across all of its functions and business divisions. The reality is that quality management is not merely a business activity but rather a unifying culture around which all internal stakeholders rally and contribute to delivering on. Avani AGRO’s promise of quality is characterized by:

Implement best farming practices and apply safe and modern cultivation, harvesting and animal rearing techniques..
Invest in the latest farming, irrigation animal breeding technologies, types of machinery and equipment.
Source the highest quality seeds, best animal breeds, raw material and safe agrochemicals (pesticides, fertilizers and veterinary medicines)
Apply best practices in terms of animal management, crop management, seasonal crop rotation and harvesting.
Support ecological and agricultural sustainability through preservation of natural resources’.

Market intelligence and knowledge of the different supply markets, origins and spot markets
Strategic sourcing and procurement optimization capabilities with internally dedicated teams
Established long-term agreements and relations with preferred and trusted producers and suppliers
Negotiating powers leveraging the group trading volumes; hence minimizing risks and costs
Efficiency and economy of scale on overall logistics operations and movement of goods
Hedging strategies and mitigation strategies against price fluctuations.

Consistent application and implementation of standardized processes across all operations.
Thorough quality assurance and control to ensure final products meet required specifications.
Comprehensive product sampling, inspection and testing in internally and externally.
Advanced skills development, quality awareness and training programmes for the team, producers and consumers.
Focused investment in operational R&D and product innovation.