Listed agribusiness firm Calata Corp. on Wednesday said that it will establish 1,000 agri retail stores nationwide as part of its aggressive expansion of its distribution network.
In a disclosure to the Philippine Stock Exchange, Calata said that its board has approved the plan to pursue the expansion of its agri retail store business nationwide, or to put up an initial of 1,000 stores in addition to the company’s 116 outlets in Luzon.
The company is also exploring the possibilities of introducing its “Agri” brand to the international market.
Lawyer Jose Marie Fabella, Calata corporate secretary and compliance officer, said that the expansion plan is part of its major strategy to sustain rapid growth and expand operations and distribution network.
“This is for the purpose of informing the stockholders and industry public of the continuous drive to expand the business,” he said, without specifying the time frame and budget for the expansion.
Calata earlier said that it is in talks for a possible partnership with a leading retailer of agricultural products, for the expansion of its distribution network in Luzon to strengthen its position as one of the largest distributor of agricultural products.
Also, Calata informed the local bourse that it has entered into a contract with International Franchise Corp. of the Philippines (Francorp) for a full professional franchise development program.
By entering into a partnership with Francorp Philippines, Fabella said that the company expects to realize its expansion plans effectively and efficiently, thereby ensuring a strong and bullish business growth apart from fortifying the company’s position as one of the leaders in the Philippine agribusiness industry.
“The contract for franchise development program, shall be effective for one year from the time of signing which is today, July 3,” added Fabella.
Incorporated in 1996, Francorp Philippines is part of the worldwide network of Francorp
International, a premier and leading franchise developer in the country with over 200 successful franchises developed or assisted at various stages of their growth.
Among the Francorp Group’s list of clientele include market leaders Jollibee Foods Corp.,
The Generics Pharmacy, Max’s Restaurant, Goldilocks, Pancake House, Bench and many others.
Francorp Philippines’ clients account for 25 percent of the total franchises in the Philippine market and works nationwide with as many as 5,000 entrepreneurs yearly.
Calata is the country’s largest combined distributor of farm inputs. Among its business partners include San Miguel Corp. for B-Meg feeds and veterinary products; Syngenta, Bayer, Jardine, Dupont Sinochem for agro-chemicals; East West Seeds, Monsanto and Planters Products for agricultural seeds and Swire and Viking for fertilizers.
Calata recently partnered with Siembra Directa Corp., a company that imports state-of-the-art agricultural machines from Argentina.