AA Plus Tradelink ventures in agricultural solutions with investment of Rs 441 million

AA Plus Tradelink Ltd, a leader in the trading of commodities, has announced a strategic investment of Rs 441 million into specialized fertilizers and pesticides. This investment marks the company's entry into agricultural solutions. This purchase has been made through Murae Organisor Ltd. 

This venture marks a pivotal shift for AA Plus Tradelink, traditionally known for trading in a variety of commodities including metals, petroleum, and petrochemical products, as it now enters the advanced agricultural products market. "These products purchased will be sold with a profit margin of 8 per cent to 13 per cent i.e the company will make a profit ranging in between Rs. 35 Million to 57 Million over the span of the next 12 Months which is roughly 2000 per cent increase," the company said in an exchange filing. 

The investment, aimed at enhancing AA Plus Tradelink’s product portfolio, will see the company distributing these agricultural essentials in both domestic and international markets over the next six months. 

Financially, AA Plus Tradelink registered a revenue growth of 32.96 per cent over the past three years, culminating in a significant 48.86 per cent increase last year alone, bringing annual revenue to Rs 17.17 Crores.
 
Earlier, AA Plus Tradelink secured an export order worth Rs 510 million (Rs 51 crore). 

Besides, it also collaborated with CNX Corporation for the export of goods worth over Rs 1.7 billion (Rs 170 crore) in the pipeline. According to a statement, it has entered into a profit-sharing arrangement of 50-50. CNX Corporation is a commodity trading entity which focuses on providing solutions in commodity and collateral management.