BayWa
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| Company type | Aktiengesellschaft (FWB: BYW6) |
|---|---|
| Industry | Retail and agribusiness conglomerate |
| Predecessor | Württ. Warenzentrale Landwirtschaftlicher Genossenschaften  |
| Founded | 1923 |
| Headquarters | , |
Key people | Klaus Josef Lutz (CEO and chairman of the management board), Manfred Nüssel (Chairman of the supervisory board) |
| Products | Trading of agricultural products, fertiliser and seeds, sale of agricultural equipment, fruit distribution |
| Services | DIY stores, garden centres, building material retail, fuel stations |
| Revenue | €7.260 billion (2009)[1] |
| €115.4 million (2009)[1] | |
| €45.0 million (2009)[1] | |
Number of employees | 15,310 (2009)[1] |
| Website | www.baywa.com |
Based in Munich, BayWa Aktiengesellschaft (BYW6 GY) is a German company which deals in Retails, Wholesales and Services. Basically, it caters to Agriculture, Building Materials and Energy sectors. It provides trading, strategic services and other miscellaneous Services in these sectors. Its primary target is to provide for the fundamental human needs of hunger, shelter, energy and transportation.
The BayWa Group is spread across 14 countries. In Germany and Austria, it operates in all the three Core Segments of its business and also as a franchisee. The Agriculture segment is further spread via local small scale companies in Belgium, France, Czech Republic, Slovenia, Croatia, Poland, Slovakia, Hungary and Serbia. With respect to its Renewable Energy Resources business, France and Spain are of vital importance. BayWa R.E (Renewable Energy) GmbH operates in these countries through RENERCO Renewable Energy Concepts AG and MHH Solartechnik GmbH, its subsidiaries. As its expansion plan, BayWa is building its DIY & Garden Centres and Building materials franchise in Italy, and Bosnia and Herzegovina.
Corporate history
BayWa AG was founded in 1923. It has its Head Office in Munich, Germany. Agricultural products, Building and Construction Related Products and Energy Industry are its prime operational areas where it operates in both the Retail and Wholesale segments. It has a turnover of approximately 8 billion Euros. It has about 2700 sales locations. The major portion of the Group’s profits comes from the Agriculture and Food Products business. It does business of Agricultural resources and then supplies the agro products from the field to the food processing industry. BayWa is one of the largest companies in this field[citation needed] and some of its products are exported worldwide. Agricultural Equipment Business unit is involved with equipment, machinery, construction and facilitation through a widespread network of dedicated workshops. Here also, BayWa is one of Europe’s premier Full-line Suppliers. In the building materials industry ranking in Germany, BayWa stands Second.
Goals, Strategy and Business Model
The main aim is to consolidate its position in the industrial segments it caters to. Simultaneously, its expertise in the business and its strategic strength are being used to create new high profit and fast growing business opportunities. Thus, the actual aim can be stated as to focus on the existing powers and core skills while expanding the business into new arenas.
The Business model of BayWa is a branched structure divided into the areas of Agriculture, Construction Materials and Energy Supply. One of the factors behind BayWa’s success is its rural trading methodology. It has been growing steadily and expanding its business in its expertise areas thus emerging as a leading group today.
Structure of BayWa AG gorup :
- Agriculture
- Agricultural Trade
- Agricultural Equipment
- Building Materials
- Building Materials
- DIY and Garden Centres
- Energy
- Energy
- BayWa r.e
The sales of BayWa are about 8 billion Euros and it has a cumulative manpower of around 16,000 employees. The three core units of BayWa operate independently in exclusive locations and with dedicated workforce and networks.
Business Units
Agriculture
This is subdivided into two units, Agricultural Trade and Agricultural Equipments. The trade unit provides the farmers with an assorted supply of various products which are of importance for the agricultural industry right from the sowing of seeds until harvesting the crops. Besides these products, it also gives guidance and counseling to farmers over issues related to agricultural farming and business. This makes BayWa a through and through ally of farmers. In the Equipments business, BayWa provides a wide range of machinery, ranging from heavy machines to small sized appliances to a wide range of customers ranging from farmers, forester to the common man. Besides, BayWa also takes contracts for planning and building of agricultural facilities. It also provides efficient service for the entire product range.
Agricultural segment makes about 45% of the company’s revenues. The trade and equipments segments together cover the entire needs of the agriculture industry throughout the year. The products supplied to the farmers include seeds, fertilizers, pesticides, animal husbandry etc. It also stores and sells the harvest for farmers. In Germany, BayWa has around 500 locations, 16 of them with their own ports, where it provides the services in this segment. As per the 2009 statistics, the revenue of this segment was 3.2 billion euros.
Building Materials
This segment provides products and services for new constructions, renovation work and entire modernization in both rural and urban areas. It also has two sub units, Building Materials and DIY & Garden Centers. BayWa has its sales centers in Germany. It also operates via franchisees in Germany, Austria and Italy. Future plans include entering the market in Bosnia Herzegovina and Croatia. BayWa is among the largest full line suppliers in this field. This segment forms about 25% of BayWa’s total revenue. Of this, 75% comes from the building materials and only 25% from the Garden and DIY unit. There are about 271 locations in Germany and Austria. Around 600 franchised locations are there. Germany is the biggest domestic market. The revenue of this segment was 1.6 billion Euros.
Energy Segment
This segment is particularly involved with the sale of fossil fuels used for heating purposes, “heating oil”. Besides, other fuels and lubricating oils are also traded. This is the third largest portion of BayWa’s revenue and generates about 25% of the total revenue. The main articles of concern are heating oil, diesel and Otto fuels [clarification needed], lubricants and solid fuel generally as wood pellets. Main sales areas are Bavaria, Baden-Württemberg, the new German federal states and Austria. There are sales offices at several locations. There are about 275 fuel stations owned and operated by BayWa in Germany under the name of BayWa and AVIA. Sales in Austria are done through a group holding GENOL, which supplies fuel to around 500 stations. The major business activities are supplying of local authorities, commerce and mineral oil trade.
In the renewable energy segment, BayWa bought 3 companies in 2009. The total revenue in the renewable energy field is 228.5 million, and by 2020, the target is to touch 1 billion Euros. In 2009, the revenue of the energy segment was about 1.8 billion Euros.
Corporate and Social Responsibility
BayWa has a foundation which was set up in 1997. Through that, it is involved in several projects to facilitate global food supply. The BayWa foundation supports feasible and philanthropic projects, both national and global, in the areas of food, energy and education. The primary aim is to raise the level of life for people who need help. It has promoted education projects in Asia and Africa. In collaboration with the University of Hohenheim, it participated in a project for securing energy supply through a Biogas project in Tanzania. The donations received by BayWa are without fail, given to the foundation. In addition to the BayWa foundation, the company donates to social and cultural facilities and also encourages the involvement of employees in association, political activities and social activities.
Competition
BayWa AG faces fierece competition from Archer-Daniels-Midland-Company, Cargill Incorporated, Compagnie de Saint-Gobain.
References
- ^ a b c d "Annual Results 2009" (PDF). BayWa. Retrieved 16 May 2010.
External links
Media related to BayWa at Wikimedia Commons