BayWa AG's Business Model
The BayWa Business model combines trade, distribution, logistics and service in its three core Segments Agriculture, Energy and Building Materials as well as the Innovation & Digitalisation development Segment. These core businesses cover fundamental Needs in the areas of food, energy, mobility, shelter and serve future-oriented markets from a single source.
Where is the BayWa Group active?
The BayWa Group’s business is concentrated on wholesale and retail trading, logistics and associated services. The headquarters of BayWa AG, the parent company founded in 1923, is Munich, Germany. Rooted in regional cooperative trading, the company has evolved into one of Europe's leading trading and logistics groups through steady growth and by consistently extending its range of products and services.
The BayWa Business model combines trade, distribution, logistics and service in its three core Segments Agriculture, Energy and Building Materials as well as the Innovation & Digitalisation development Segment. These core businesses cover fundamental Needs in the areas of food, energy, mobility, shelter and serve future-oriented markets from a single source. BayWa's Business is focused on Europe, although the Agriculture and Energy Segments can draw on global trading, service, distribution and procurement network. The focus of Group Strategy is the increase of corporate sustainability in the core business areas and the promotion of growth in innovative business areas, to strengthen Independence and competitiveness. By combining products, consulting and services, the Group is developing into an integrated and digital solution provider.
BayWa is strongly anchored in rural regions. Including franchise and partner companies, the Group has around 3,000 sales locations spread across 41 countries. Its home markets are in Germany, Austria and the European Union. In addition, BayWa has gained a foothold in New Zealand and the United States of America as well as business relations from Asia to South America through expanding its activities in the fields of fruit and renewable energies.
How is the Group positioned?
The Agriculture Segment is divided into four business areas and accounts for the largest share of consolidated revenues, 66 percent. Business ranges from international trade and logistics activities in certain agricultural commodities to the distribution of input resources and feedstuff. Trading activities also encompass the procurement and sale of many types of fruit. When it comes to agricultural machinery, BayWa’s activities range from sales of new machinery and maintenance and repair services to sales of used machinery. The Agriculture Segment covers the entire value chain, from the field right through to marketing the produce. Aside from trading and logistics activities, BayWa also offers associated services in all four business areas and is therefore one of Europe’s leading agri-trading companies with global reach.
The Energy Segment is divided into two business areas and accounts for roughly 24 percent of consolidated revenues. The Group pools its entire renewable energy value chain in BayWa r.e. renewable energy. Activities span four different areas: project development/realisation, services, photovoltaic trade and energy trade. This business unit has a strongly international outlook and operates in Europe, North America and in the Asia-Pacific region. In its conventional energy business, BayWa sells heating oil, fuels, lubricants, wood pellets and AdBlue, primarily in southern Germany and Austria. It also offers comprehensive and tailor-made energy provision solutions for commercial, municipal and private properties.
Building Materials Segment
The Building Materials Segment accounts for around 10 percent of consolidated revenues. This Business serves commercial and private customers, supplying the full spectrum of building materials. The range of products covers all bases when it comes to trade and services – from the building shell to interior design, garden landscaping, site logistics, assembly services, building services and arranging qualified craft enterprises. BayWa is one of the largest providers of building materials in the German-speaking world. In addition, BayWa also operates a franchise model for its building materials and DIY/garden centre business in Germany and Austria.
Innovation & Digitalisation Segment
BayWa has plotted a clear course into the digital future by establishing the independent Innovation & Digitalisation Segment, which is responsible for developing and marketing digital products and services for enhancing productivity in agriculture. Additionally it pools innovation programs and initiatives as well as the BayWa Group's e-business activities in the "BayWa Portal". With the software product "NEXT Farming OFFICE" Farmers are offered a future-oriented and interoperrable farm Management System. A number of modular tools and solutions are also available. The next innovative step is the networking of entire areas of farms and processes. To this end, the "NEXT Farming LIVE" product generation was developed, providing an overall concept for medium-sized and small farms. Through the Agro Innovation Lab, the Acceleration Program of BayWa and RWA, innovative ideas and business models of start-ups are jointly developed.