Corteva - Growth from New Launches & Cost Saving Synergies
James C. Collins, Jr., COO of Corteva AgroSciences was presenting the detailed business strategy for near to long-term growth of organization. Other senior members of the management team were also present there while Corteva hosted its inaugural investor day on November 8, 2018 in New York City.
Colin followed the core intention behind the ongoing merger-demerger process with DowDuPont and announced the intentions to be pure player of agriculture industry. The division, which is due for announced separation, is expected to establish independent presence on June 1, 2019. Highlighting the operational strategy, Collins announced increasing product coverage and increasing portfolio depth with more focus on currently dominated segments of insects and herbicides. He pledged to deliver higher than market growth via increased market penetration and enhanced portfolio, which includes 21 product launches in next five years.
Further, he also outlined the synergies to continue to deliver cost benefits in near term to free cash for stakeholders and R&D activities. The division had targeted $1.1 cost synergy benefits from merger synergy in three years. The division has been on target and has been delivering the growth and cost synergies as per the management presentation.
Corteva is agriculture division of DowDuPont which is due for intended separation on June 1, 2019. The division currently holds the agriculture portfolios of both parent companies and had dominance in the core areas of insect and herbicides. The portfolio of the division includes some of the recognized brands such as Pioneer®, Encirca®, and Brevant®.
– Ankur Kalra,
Manager – Chemicals &Materials,