Business description
Lộc Trời Group (LT Group) is the leading distributor and a manufacturer of crop protection chemicals (CPC) in Vietnam. With a nationwide distribution network of 25 branches, and more than 5,000 dealers and retailers, and a team of more than 1,300 agricultural engineers (the Farmers’ Friends), the company dominates the market with 20%+ market share. Distributed products are primarily sourced from Syngenta, the world’s No. 1 agricultural input producer, with whom the company has had an uninterrupted long-term relationship. LT Group is also Vietnam’s second largest distributor of seeds, focusing on rice and hybrid corn seeds. Since 2010, LT Group has aggressively expanded into the rice processing & trading business and has become the leading vertically integrated agricultural service provider in Vietnam.

Key highlights

  • Market leader in Crop Protection Chemicals: LT Group is the largest domestic distributor and manufacturer of crop protection chemicals (CPCs) in Vietnam.
  • Largest & well-organized distribution network: nationwide distribution network with 25 branches, more than 5,000 dealers and retailers and 01 subsidiary company in Cambodia.
  • Long-term established relationship with global CPC producers: products are primarily sourced from Syngenta, the world’s No. 1 agricultural input producer. Several key income contributors are sold on an exclusive basis.
  • Vietnam’s second largest supplier of seeds, focusing on its proprietary rice seeds and Syngenta corn seeds. With 3 research centers, 2 in Mekong Delta and 1 in the Central Highlands, LT Group is capable of developing a wide range of high quality rice and vegetable seed varieties.
  • Unique Farmer’s Friends network: Farmers’ Friends (FFs) network is an important strategic force and comparative advantage of LT Group. FFs are agriculture engineers who provide technical assistance and farming best practices to farmers on the field and on a regular basis. The company currently has more than 1,300 FFs.
  • Well-controlled vertically integrated rice production: the strength in CPCs, seeds and the largest sales force position, LT Group well to expand downstream into rice processing & trading to exploit the whole agricultural value chain which will contribute to its high and sustainable growth. LT Group’s large scale rice farming and the FF model enables the company to control and end-to-end production process, resulting in the traceability and tractability of the agricultural outputs, which are required by the most demanding rice export markets.

Results
Net profit cumulative annual growth rate of 25% during 2008 – 2014.