Don Agro International, the first Russian company to list on the SGX, announced that it is investing in expanding its storage capacity by about 50%.

One of the largest agricultural companies in the Rostov region of Russia, Don Agro plans to invest S$1.9 million to expand its overall storage capacity facilities from 65,000 tonnes to 95,000 tonnes.

This initiative will allow the Group to store larger amounts of wheat and sunflower seeds for longer periods with the intent to sell more during peak pricing periods.

That will result in potentially greater profit margins.

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Construction of this additional capacity has begun and is expect to complete within four months.

The additional storage capacity will enable Don Agro to harvest sunflowers more quickly and sow winter wheat within the most optimal time frame.

In addition, the Group has invested S$0.4 million to purchase the latest John Deere R4023 Self-Propelled Sprayer.

This will boost productivity and optimise efficiency, and save some costs and reduce the reliance on labour, said Don Agro.

The Group will be utilising internal funding to expand its storage capacity and acquire the new machine.

Don Agro ManagementL-R: Artur Nazaryan, CFO | Evgeny Tugolukov, Executive Chairman | Marat Devlet-Kildeyev, CEO. (Mr Tugolukov will own 78.2% of Don Agro immediately post-listing). Photo by Wei Bin

Executive Chairman Evgeny Tugolukov said, “Fresh off our IPO in February 2020, we have begun to execute various strategies for growth to strengthen our position as one of the largest agricultural companies in the Rostov region of Russia. This capital expenditure on new machinery and the expansion of our facilities will allow us to improve yields within our crop business and enhance our operational efficiency. Ultimately, these efforts will translate to improved financial performance and thereby enhance long-term shareholder value.”

Looking ahead, the Group plans to scale its business through the expansion of its arable land bank.

It is also exploring opportunities in mergers and acquisitions, joint ventures and strategic alliances with both domestic and foreign companies.

By leveraging on its expertise and experience, the Group intends to seek new and suitable opportunities to expand into other high growth regional markets within Russia, such as other districts within the Rostov region and the Krasnodar region in Russia.

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