Partnerships with Private Machinery Manufacturers Support Market Expansion of Machinery in Bangladesh

Janata JVA

CSISA-Mechanization and Irrigation (CSISA-MI) recently signed a joint venture agreement with Janata Engineering, an agricultural machinery manufacturer and supplier, to provide marketing support for the power tiller mounted reaper in Faridpur, Madaripur, Bhola, Jhenaidah and Magura districts of Bangladesh.

As private sector companies are better positioned to enter new market segments with their own investments, CSISA-MI works with International Development Enterprises (iDE) to develop public-private partnerships and successful business models to ensure the scaling of sustainable intensification technologies.

So far, CSISA-MI has entered into joint venture agreements with various large machinery manufacturers and importers, including Advanced Chemical Industries, Rangpur Foundry Limited Group, The Metal (Pvt.) Ltd. and Chittagong Builders. These companies and their service provider clients have invested their own funds towards the purchase, import, distribution and marketing of equipment and use of machinery services, leveraging an additional value of more than US$ 1.7 million over-and-above project funds.

These private sector engagements are helping to develop self-sustaining value chains that will continue to deploy equipment beyond the project’s lifecycle. Through these partnerships, CSISA-MI aims to reach the ‘tipping point,’ which is 15 percent of the total potential beneficiary population in the Feed the Future zone, the U.S. Government’s global hunger and food security initiative. Beyond this, a spontaneous private sector and market led uptake is expected to take place.

To achieve this tipping point, CSISA-MI is now also reaching out to smaller local enterprises, such as Janata Engineering, that have the potential to develop, produce and import agricultural machines but lack knowledge and marketing support to modify and sell new products that meet the local demand.

The collaboration with Janata Engineering will help develop a strong business model for its power tiller mounted reaper through their commercial distribution network and will strive to establish a profitable and sustainable supply chain, including after-sales service and better availability of spare parts.

With a focus on the testing of new products and the modification of existing machines, CSISA-MI will further draw upon its relationships with development, research and government organizations to transfer research and knowledge to Janata Engineering.

This article is authored by M. Shahidul Haque Khan, Communications Officer, CIMMYT.

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Posted on Bangladesh-news, News - Homepage, News & Announcements, April 22, 2016