Fiona Maskinfabrik A/S  -  The Metal (Pvt.) Ltd. -  Assembly & Sale of Seed drills

The Metal has through the Danida PSD-Programme been looking for a Danish partner interested in assisting in developing the product portfolio by introducing new agricultural implements.

In 2000, The Metal applied for participation at the TechChange Agromek Fair. However, unfortunately none of the contacts made during TechChange turned into a partnership. In 2003, Mr. Villy Iversen of Agro International was introduced to The Metal in Bangladesh through Mr. Reddy from the Danish Embassy. Based on an evaluation of The Metal's current product portfolio, it was assessed that seed drills were a natural next step for The Metal to introduce. On that background, Agro International contacted Fiona Maskinfabrik as a potential partner for The Metal.

In May 2003, Fiona Maskinfabrik went on a first visit trip to Bangladesh to visit The Metal in order to discuss a future co-operation. During the visit Fiona Maskinfabrik visited other potential co-operation partners in Bangladesh. However, due to the fact that The Metal has a vast network in Bangladesh combined with a genuine interest in exploring the potential of partnership with the Danish company, they were chosen as the most suitable partner for assembly, production and sale of seed drills in Bangladesh based on Fiona’s technology.

The Metal visited Fiona Maskinfabrik in August 2003 in order to identify which kind of machines that would be most suitable for the Bangladeshi market and to discuss the future co-operation in more detail.

Project Idea and Concept

The project idea is to assemble and sell seed drills on the Bangladeshi market based on the technology and design developed by Fiona in Denmark. Within the framework of the Danida Start-Up Facility, the partners wish to test the market potential for seed drills in Bangladesh as well as test the applicability of the Fiona technology.

The Start-Up Facility will encompass:

• Training in assembly of 2-3 types of seed drills.
• Test of the applicability of the equipment in the Bangladeshi context.
• Marketing initiatives and demonstrations of the equipment for potential customers. Initial test production of specific parts of the seed drilll at The Metal’s facility in Bangladesh.
• Test of new cultivating techniques for rice growing based on methods used in Italy

If the Start-Up Facility turns out positively and the market responds well to the seed drills, Fiona and The Metal will consider expanding the co-operation further. An expansion of the co-operation will encompass local production of specific parts for the seed drills in Bangladesh. A future co-operation could be in the form of a joint-venture or a license agreement. The details regarding mode of co-operation will be discussed in more detail after the Start-Up Facility has been completed.