Philippines firm Calata to set up nationwide retail chain

4 May 2012 (Last Updated May 4th, 2012 07:00)

Philippines-based Calata Corporation intends to set up a nationwide chain of one-stop convenience stores for all agricultural products that farmers need for their crops and livestock.

Philippines-based Calata Corporation intends to set up a nationwide chain of one-stop convenience stores for all agricultural products that farmers need for their crops and livestock.

Calata chairman Joseph Calata said the company is already the nation's biggest combined distributor of agro-chemicals, fertilizers, feeds, seeds, and veterinary medicines.

The firm has major plans to sustain rapid growth and expand operations and distribution network in the country.

As part of the strategy, Calata plans to set up 100 retail outlets in Luzon this year, which will be funded by its planned PHP270m ($6.4m) initial public offering (IPO), reported mb.com.ph.

Calata said it will have the capacity to establish 80-100 outlets a year and envisions its retail chain to have a countrywide presence with about 300 stores.

The Philippines Stock Exchange has already approved Calata's IPO of up to 36.01 million primary shares at an offer price of up to P7.50 per share, indicating an IPO size of up to PHP270m, equivalent to 10% of the firm.

Calata is likely to use proceeds from the offering for an expansion program that will allow the company to sell agricultural products directly to farmers and other small dealers in the country.

In addition, the agricultural firm is expected to place retail or distribution outlets in strategic areas beyond its existing distribution network.

An affiliate of Bulacan-based Calata already operates 115 retail stores.

With the expansion, the company aims to grow business coverage, establish a more stable customer base, and increase profit margins and cash flows.

The Philippines-based firm is also involved in poultry growing and breeder farming using climate-controlled systems.

Calata's affiliate already has a capacity of 720,000 birds per year and aims to build new facilities for 5 million birds each year as contract grower of Magnolia.