BayWa
Encyclopedia
Based in Munich
, BayWa Aktiengesellschaft is a German company which operates in the agriculture
, building materials and energy
sectors. It provides trading, strategic and other miscellaneous services in these sectors.
The BayWa (Bayerische Warenvermittlung) Group is spread across 14 countries. In Germany
and Austria
, it operates in all the three core segments of its business and also as a franchisee
. The Agriculture segment is further spread via local small scale companies in Belgium, France, Czech Republic
, Slovenia
, Croatia
, Poland, Slovakia
, Hungary and Serbia
. With respect to its Renewable Energy
Resources business, France and Spain are of vital importance. BayWa R.E (Renewable Energy) GmbH operates in these countries through its subsidiaries Renerco Renewable Energy Concepts AG and MHH Solartechnik GmbH
. As part of its expansion plan, BayWa is broadening its DIY, garden centre
s and building materials franchises in Italy and Bosnia and Herzegovina.
segments. It has a turnover of approximately €8 billion and about 2,700 sales locations. The major portion of the group’s profits comes from its Agriculture division. It does business of agricultural resources and then supplies the agro products from the field to the food processing industry. BayWa is one of the largest companies in this field and some of its products are exported worldwide. Its Agricultural Equipment business unit is involved with the sale and service of machinery
. In the building materials industry ranking in Germany, BayWa stands second.
Structure of BayWa AG group:
The sales of BayWa are about €8 billion and it has a cumulative manpower of around 16,000 employees. The three core units of BayWa operate independently in exclusive locations and with dedicated workforce and networks.
The Agriculture segment makes about 45% of the company’s revenues. The products supplied to the farmers include seeds, fertilizers, pesticides, animal husbandry
etc. It also stores and sells the harvest for farmers. In Germany, BayWa has around 500 locations, 16 of them with their own ports, where it provides the services in this segment. As per the 2009 statistics, the revenue of this segment was €3.2 billion.
. Besides, other fuels and lubricating oils are also traded. This is the third largest portion of BayWa’s revenue and generates about 25% of the total revenue. The main articles of concern are heating oil
, diesel and Otto fuels , lubricants and solid fuel
generally as wood pellets. Main sales areas are Bavaria, Baden-Württemberg, the new German federal states and Austria. There are sales offices at several locations. There are about 275 fuel stations owned and operated by BayWa in Germany under the name of BayWa and AVIA. Sales in Austria are done through a group holding GENOL, which supplies fuel to around 500 stations. The major business activities are supplying of local authorities, commerce and mineral oil trade.
In the renewable energy segment, BayWa bought 3 companies in 2009. The total revenue in the renewable energy field is 228.5 million, and by 2020, the target is to touch 1 billion Euros. In 2009, the revenue of the energy segment was about 1.8 billion Euros.
, it participated in a project for securing energy supply through a Biogas
project in Tanzania. The donations received by BayWa are without fail, given to the foundation. In addition to the BayWa foundation, the company donates to social and cultural facilities and also encourages the involvement of employees in association, political activities and social activities.
Munich
Munich The city's motto is "" . Before 2006, it was "Weltstadt mit Herz" . Its native name, , is derived from the Old High German Munichen, meaning "by the monks' place". The city's name derives from the monks of the Benedictine order who founded the city; hence the monk depicted on the city's coat...
, BayWa Aktiengesellschaft is a German company which operates in the agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
, building materials and energy
Energy industry
The energy industry is the totality of all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution...
sectors. It provides trading, strategic and other miscellaneous services in these sectors.
The BayWa (Bayerische Warenvermittlung) Group is spread across 14 countries. In Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, it operates in all the three core segments of its business and also as a franchisee
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
. The Agriculture segment is further spread via local small scale companies in Belgium, France, Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
, Slovenia
Slovenia
Slovenia , officially the Republic of Slovenia , is a country in Central and Southeastern Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy to the west, Croatia to the south and east, Hungary to the northeast, and Austria to the north, and also has a small portion of...
, Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...
, Poland, Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
, Hungary and Serbia
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
. With respect to its Renewable Energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
Resources business, France and Spain are of vital importance. BayWa R.E (Renewable Energy) GmbH operates in these countries through its subsidiaries Renerco Renewable Energy Concepts AG and MHH Solartechnik GmbH
Gesellschaft mit beschränkter Haftung
Gesellschaft mit beschränkter Haftung is a type of legal entityvery common in Germany, Austria, Switzerland, and other Central European countries...
. As part of its expansion plan, BayWa is broadening its DIY, garden centre
Garden centre
A garden centre is a retail firm that sells plants and products related to gardens as its primary business. It is open to the public, with facilities to care for and display plants.- UK :...
s and building materials franchises in Italy and Bosnia and Herzegovina.
Corporate history
BayWa AG was founded in 1923. It has its head office in Munich, Germany. Agricultural products, building and construction-related products and the energy industry are its prime operational areas where it operates in both the retail and wholesaleWholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
segments. It has a turnover of approximately €8 billion and about 2,700 sales locations. The major portion of the group’s profits comes from its Agriculture division. It does business of agricultural resources and then supplies the agro products from the field to the food processing industry. BayWa is one of the largest companies in this field and some of its products are exported worldwide. Its Agricultural Equipment business unit is involved with the sale and service of machinery
Agricultural machinery
Agricultural machinery is machinery used in the operation of an agricultural area or farm.-Hand tools:The first person to turn from the hunting and gathering lifestyle to farming probably did so by using his bare hands, and perhaps some sticks or stones. Tools such as knives, scythes, and wooden...
. In the building materials industry ranking in Germany, BayWa stands second.
Business model
The company's main aim is to consolidate its position in the industrial segments it caters to. The business model of BayWa is a branched structure divided into the areas of Agriculture, Building and Energy.Structure of BayWa AG group:
- Agriculture
- Agriculture (trade)
- Agricultural Equipment
- Fruit (trade, wholesale)
- Building Materials
- Building Materials (trade)
- DIY and Garden Centres (retail)
- Energy
- Energy (trade, wholesale, retail)
The sales of BayWa are about €8 billion and it has a cumulative manpower of around 16,000 employees. The three core units of BayWa operate independently in exclusive locations and with dedicated workforce and networks.
Agriculture
This is subdivided into three units, Agricultural Trade, Agricultural Equipment and Fruit. The trade unit provides the farmers with an assorted supply of various products which are of importance for the agricultural industry right from the sowing of seeds until harvesting the crops. Besides these products, it also gives guidance and counseling to farmers over issues related to agricultural farming and business. In the Equipments business, BayWa provides a range of machinery, from heavy machines to small sized appliances, to a range of customers including farmers, foresters and the general public. Besides, BayWa also takes contracts for planning and building of agricultural facilities. It also provides service for the entire product range.The Agriculture segment makes about 45% of the company’s revenues. The products supplied to the farmers include seeds, fertilizers, pesticides, animal husbandry
Animal husbandry
Animal husbandry is the agricultural practice of breeding and raising livestock.- History :Animal husbandry has been practiced for thousands of years, since the first domestication of animals....
etc. It also stores and sells the harvest for farmers. In Germany, BayWa has around 500 locations, 16 of them with their own ports, where it provides the services in this segment. As per the 2009 statistics, the revenue of this segment was €3.2 billion.
Building Materials
This segment provides products and services for new constructions, renovation work and entire modernization in both rural and urban areas. It also has two sub units, Building Materials and DIY & Garden Centers. BayWa has its sales centers in Germany. It also operates via franchisees in Germany, Austria and Italy. Future plans include entering the market in Bosnia and Herzegovina and Croatia. BayWa is among the largest full line suppliers in this field. This segment forms about 25% of BayWa’s total revenue. Of this, 75% comes from the building materials and only 25% from the garden and DIY unit. There are about 271 locations in Germany and Austria. Around 600 franchised locations are there. Germany is the biggest domestic market. The revenue of this segment was €1.6 billion.Energy
This segment is particularly involved with the sale of heating oilHeating oil
Heating oil, or oil heat, is a low viscosity, flammable liquid petroleum product used as a fuel for furnaces or boilers in buildings. Home heating oil is often abbreviated as HHO...
. Besides, other fuels and lubricating oils are also traded. This is the third largest portion of BayWa’s revenue and generates about 25% of the total revenue. The main articles of concern are heating oil
Heating oil
Heating oil, or oil heat, is a low viscosity, flammable liquid petroleum product used as a fuel for furnaces or boilers in buildings. Home heating oil is often abbreviated as HHO...
, diesel and Otto fuels , lubricants and solid fuel
Solid fuel
Solid fuel refers to various types of solid material that are used as fuel to produce energy and provide heating, usually released through combustion....
generally as wood pellets. Main sales areas are Bavaria, Baden-Württemberg, the new German federal states and Austria. There are sales offices at several locations. There are about 275 fuel stations owned and operated by BayWa in Germany under the name of BayWa and AVIA. Sales in Austria are done through a group holding GENOL, which supplies fuel to around 500 stations. The major business activities are supplying of local authorities, commerce and mineral oil trade.
In the renewable energy segment, BayWa bought 3 companies in 2009. The total revenue in the renewable energy field is 228.5 million, and by 2020, the target is to touch 1 billion Euros. In 2009, the revenue of the energy segment was about 1.8 billion Euros.
Corporate and social responsibility
BayWa has a foundation which was set up in 1997. Through that, it is involved in several projects to facilitate global food supply. The BayWa foundation supports feasible and philanthropic projects, both national and global, in the areas of food, energy and education. The primary aim is to raise the level of life for people who need help. It has promoted education projects in Asia and Africa. In collaboration with the University of HohenheimUniversity of Hohenheim
The University of Hohenheim is a university in Stuttgart, Germany. Founded in 1818 it is Stuttgart's oldest university and one of Germany's leading universities both in agricultural sciences and economics.-History:...
, it participated in a project for securing energy supply through a Biogas
Biogas
Biogas typically refers to a gas produced by the biological breakdown of organic matter in the absence of oxygen. Organic waste such as dead plant and animal material, animal dung, and kitchen waste can be converted into a gaseous fuel called biogas...
project in Tanzania. The donations received by BayWa are without fail, given to the foundation. In addition to the BayWa foundation, the company donates to social and cultural facilities and also encourages the involvement of employees in association, political activities and social activities.