Malaysian agritech, IRGA completes acquisition of Kingoya Enterprise as part of global expansion
By Digital News Asia April 4, 2022
- Positions as end-to-end solutions provider to global agricultural interests
- Aims to develop slate of technological innovations to reshape industry
IRGA (agri spelt in reverse) Sdn Bhd, an agritech solutions provider founded in 2020 with the ambitious goal of becoming the first Southeast Asian agritech unicorn IPO, announced today the completion of its acquisition of Kingoya Enterprise Sdn Bhd, a plantations tools manufacturing company that was founded in 1998.
The synergies from the merger – accelerated productive hardware solutions, stand to benefit from the tailwind of highest crude palm oil prices in Malaysia since the 1970s, coupled with the lowest productivity in the sector at 16 FFB yield per hectare in 2021 which has left produce rotting in the plantations.
Commenting on the acquisition, IRGA cofounder Girish Ramachandran said, “Today marks a historic day for both Kingoya and IRGA. Having served as a Board member of Kingoya since 2010, I am very happy to have Yama Yeo and Gopi Nair, founders of Kingoya, on board. We have managed to blend the software technologies of IRGA with the hardware manufacturing expertise of Kingoya, bringing together a core management team of 7 leaders. We foresee rapid growth in our global expansion, in particular the harvesting operation segment of plantation management.”
On recent roadshows in Peninsular and East Malaysia, IRGA elicited interest in its iPLANT plantation management software and upcoming HARVi electrical FFB cutter. The company is working to roll out and deliver its products and services to customers.
In 2021, Kingoya achieved revenue of US$2.55 million (RM10.75 million), with 92% generated from exports to 15 countries, globally. With the global agricultural equipment market expected to reach US$244.2 billion (RM1.03 trillion) by 2025 according to a study conducted by Grand View Research, there is abundant opportunity in this sector for companies to tap into, while at the same time managing the ESG supply chain risks.
With 20 years experience servicing agricultural concerns across the equatorial belt, Kingoya has developed a keen understanding of the needs of workers in the field. This has led them to build innovative tools that improve harvester productivity and efficiency as well as being safe, and environmentally friendly.
Managing Director of Kingoya, Yama Yeo Keng Loong, was bullish over the acquisition: “We are excited with this new development and look forward to substantial synergies in our operations to grow the business. Kingoya will continue to maintain its leading position as an innovator of harvesting tools and equipment for the oil palm industry. Additionally, our customers will also greatly benefit, as Kingoya through IRGA will be actively exploring automation, mechanisation, and digitalization in the agricultural industry.”
IRGA, with its newly acquired resources from Kingoya, will be developing a complete slate of technological innovations which it aspires to reshape the industry in novel ways, delivering cognizant technology solutions that will radically improve agricultural output.
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