OAT Agrio

Basic Information

Stock Code
4979
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Tokyo
Establishment Year
September 2010
Listing Year
June 2014
Official Website
https://www.oat-agrio.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kyoritsu Joho Tsushin, Sugai Chemical Industry, Earth Corporation, Hokko Chemical Industry, Kumiai Chemical Industry, Nihon Nohyaku, Fumakilla, DNHD, Hatsuhoshi Shoji

Overview

OAT Agrio is a company established in 2010 belonging to the chemical industry, with its main business in the manufacture and sale of pesticides and fertilizers, and has grown as a major player in the industry through its proprietary insecticide and miticide technologies.

Current Situation

OAT Agrio recorded consolidated sales of approximately 22 billion yen in 2019, maintaining steady performance centered on pesticides and fertilizers. Its main products are self-developed insecticides and miticides, establishing a strong position in the domestic agricultural materials market. In research and development, it develops innovative pesticide technologies at its research facility in Tokushima, contributing to sustainable agriculture. Leveraging its good relationship with Otsuka Chemical, it continues with material supply and technical exchanges. In 2023, it transitioned to the Tokyo Stock Exchange Standard Market, aiming to enhance corporate value. Utilizing bases in Japan and overseas, it is strengthening expansion into the Asian market. It is actively promoting sustainability and striving to reduce environmental impact. In the future, it aims to accelerate growth through strengthening its product portfolio and introducing new technologies.

Trivia

Interesting Facts

  • Established as an independent company from Otsuka Chemical, securing a stable foundation
  • Tokushima research facility operates stably under a 30-year land lease
  • In-house developed benfuracarb is a proprietary technology insecticide
  • Miticide Dani Saraba holds high market share in Japan
  • Joint venture subsidiaries established in India and Indonesia
  • Actively developing plant growth regulators in addition to pesticides
  • Bases spanning from Sapporo to Kyushu nationwide
  • Strengths in both pesticides and fertilizers with diversified expansion
  • Corporate number and capital clearly stated as official information
  • R&D and production strengthened through collaboration with Otsuka Chemical
  • Listed on TSE Second Section in 2014, transitioned to First Section in 2015
  • Market change to TSE Standard in 2023
  • Fungicide 'Gatten' manufactured by Indian joint venture
  • Niche products like lawn colorants also offered
  • Plays a role in agricultural support as a Japanese pesticide company

Hidden Connections

  • Sustainable technical exchanges and asset lease agreements with Otsuka Chemical form the basis of business stability
  • Joint venture with Insecticides (India) Limited accelerating international expansion
  • Co-development and cost reductions achieved by locating research base within Otsuka Chemical premises
  • Successful market diversification through multi-brand strategy in agricultural materials
  • Long-term exclusive supply of specific ingredients in the agricultural insecticide market
  • Verification experiments at Tokushima test farm ensure product quality
  • Development of low-environmental-impact products gaining attention as part of global environmental conservation activities
  • Leveraging technologies honed in the Japanese market to expand into Asian regions

Future Outlook

Growth Drivers

  • Growth in emerging agricultural markets centered on Asia
  • Product development responding to strengthened environmental regulations
  • Increasing demand for technologies due to rising needs for agricultural efficiency
  • Expansion of plant protection agents and growth regulator markets
  • Agricultural support solutions utilizing digital technologies
  • Growing global interest in sustainable agriculture
  • Accelerated technological innovation through collaboration with Otsuka Chemical
  • Customer base expansion through strengthened regionally focused services
  • Market expansion through new ingredient pesticide applications and approvals
  • Improved cost competitiveness through enhanced overseas local production
  • New customer acquisition through expanded product portfolio
  • Addressing market entry barriers via regulatory-compliant product development

Strategic Goals

  • Achieve sales of 30 billion yen
  • Expand product lineups domestically and internationally
  • Low-environmental-impact products accounting for over 50% of sales
  • Increase R&D investment and establish technological leadership
  • Expand market share in Asia
  • Deepen social contributions through sustainable agriculture support
  • Launch digital agriculture services
  • Expand multifaceted sales channels
  • Continuous improvement in ESG ratings
  • Product differentiation and enhanced customer satisfaction within the industry

Business Segments

For Agricultural and Horticultural Businesses

Overview
Supplies pesticides and fertilizers necessary for agriculture and horticulture, supporting yield improvements.
Competitiveness
Provision of high-quality products through in-house developed active ingredients and technological capabilities
Customers
  • Agricultural corporations
  • Horticultural farms
  • Agricultural cooperatives
  • Agricultural material distributors
  • Seed and seedling companies
  • Public agricultural research institutions
Products
  • Insecticides
  • Miticides
  • Fungicides
  • Fertilizers
  • Agricultural materials
  • Plant growth regulators

Overseas Market Business

Overview
Pursuing local expansion in pesticide and fertilizer business with an eye on overseas markets.
Competitiveness
Product supply capabilities through unique Japanese technology and collaboration with Otsuka Chemical
Customers
  • Asian agricultural companies
  • Importers and exporters
  • Local pesticide trading companies
  • Overseas horticultural businesses
Products
  • Insecticides
  • Miticides
  • Fertilizers
  • Pesticide active ingredients

Research and Development Services

Overview
Provides research support such as evaluation of pesticide efficacy and safety.
Competitiveness
High-precision analysis technology at the Tokushima R&D facility
Customers
  • Agricultural research institutions
  • University labs
  • Pesticide and chemical companies
  • International research organizations
Products
  • Cultivation testing
  • Pesticide evaluation
  • Ingredient analysis
  • Environmental impact surveys

Plant Growth Regulator Market

Overview
Provides products that contribute to plant growth promotion and quality improvement.
Competitiveness
Integration of proprietary ingredient formulations and cultivation technologies
Customers
  • Agricultural corporations
  • Horticultural businesses
  • Seed and seedling companies
  • Pesticide retailers
Products
  • Plant growth regulators
  • Liquid fertilizers
  • Special fertilizers

Competitive Advantage

Strengths

  • In-house developed pesticide ingredient technology
  • Stable collaboration with Otsuka Chemical
  • Wide product lineup
  • High market share in the domestic agricultural market
  • Well-equipped R&D facilities
  • Sales network spanning multiple regions
  • Handling of a wide range of agricultural materials
  • Strong customer base
  • Stable production through long-term land leases
  • Active initiatives toward sustainability
  • Strategic overseas expansion
  • Ability to serve diverse customer segments
  • Quick response to technological innovations
  • Highly specialized employees
  • Stable financial foundation

Competitive Advantages

  • Differentiation from competitors through proprietary benfuracarb technology
  • Close collaboration with Otsuka Chemical's research facilities
  • High-level technology development at the Tokushima research base
  • Stable material supply and technical support system
  • Risk diversification through multinational expansion
  • Integrated manufacturing and sales system for pesticides and fertilizers
  • Regionally focused sales channel network
  • Expansion of environmentally friendly product lineup
  • Rapid product rollout for emerging markets
  • Enhanced services for aging farmers
  • Strengthened initiatives for sustainable agriculture support
  • Stable business foundation through long-term contracts
  • High expertise and experience in product development
  • Product design capabilities that anticipate regulatory changes
  • Support system for improving customer satisfaction

Threats

  • Market constraints due to strengthened pesticide regulations
  • Intensifying competition from overseas players
  • Demand fluctuation risks due to climate change
  • Rising raw material prices
  • Market shrinkage due to declining agricultural workforce
  • Competitive disadvantage from delays in technological innovation
  • Increase in new entrants
  • Impact of international trade friction and tariff changes
  • Profit pressure from exchange rate fluctuations
  • Increased usage restrictions due to environmental protection movements
  • Reduced agricultural investment during economic downturns
  • Risk of intellectual property rights infringement

Innovations

2023: Practical Application of New Pesticide Ingredients

Overview
Launched an improved version of the new insecticide Oncol using benfuracarb.
Impact
20% improvement in crop protection efficiency

2022: Innovation in Fertilizer Formulation Technology

Overview
Improved absorption efficiency of the foliar spray fertilizer Sunpi through ingredient enhancements.
Impact
15% increase in fertilization effects

2024: Introduction of Digital Management System for Agricultural Materials

Overview
Utilizing IoT technology to streamline inventory and usage management of agricultural materials.
Impact
30% reduction in management costs

2021: Development of Low-Environmental-Impact Products

Overview
Began prototyping and market launch of biodegradable pesticide containers.
Impact
20% reduction in plastic usage

2020: Establishment of Overseas R&D Bases

Overview
Established R&D subsidiaries in India and Indonesia to strengthen locally adapted technologies.
Impact
10% increase in overseas sales

Sustainability

  • Development and promotion of low-environmental-impact pesticides
  • Expansion of biodegradable packaging materials
  • Promotion of agricultural material recycling activities
  • Promotion of energy-saving factories and CO2 emission reductions
  • Regional agricultural support and formation of sustainable communities