Malaysian Market Research Details

IRGA Sdn Bhd - AgriTech

 


IRGA aims to be the first agri-tech unicorn in Southeast Asia. The company is using the power of digital technology to restructure the agricultural sector by development from hardware to in-house software. We spoke to Mr Harish Subramaniam, Director and Co-founder of IRGA.

Tell us about how you started your business?

Recent digitalisation has transformed all industries. However, the plantation sector, has not changed much from our childhood days till today.

Therefore, IRGA aims to reinvent the agricultural sector through the power of technology by combining its strengths in extensive data analysis, field research and product development. It aims to optimise the decision-making process by providing farmers and landowners with a digital platform that integrates precision farming and solutions.

IRGA's business name came from reversing the spelling of 'AGRI', based on the philosophy of 'comprehensive examination and restructure of the agriculture industry and the technological growth prospects'.

What is the status of your business?

Company overview

The company was founded in 2020 following the acquisition of an agricultural tool manufacturer, Kingoya Enterprise Sdn Bhd, and a software development company. It has around 90 employees with diverse skillsets, including a R&D team that carries out research and development of software and digital hardware, and employees who design and manufacture agricultural equipment.

When looking at the digitalisation of the plantation industry in terms of the 'farm - factory - distribution/sales' process, there are various solutions and players in the downstream areas such as factory manufacturing and marketplaces. On the other hand, the upstream areas, such as the condition of the trees in the fields and operation of the farms, are often neglected. Large companies have invested in major ERPs, but it takes a lot of time and money to expand to meet their field operations. We are digitising processes from farms to mills, and are integrating data to establish ERPs.

Solution Line-ups

Overview of key products and services offered. (Image provided by IRGA)

iPLANT:Operations management platform

It is a comprehensive management system that manages end-to-end farm operations by utilising data collected from farm activities: harvesting to milling processes, comprised of iPLANT FiELD (farm management system), IPLANT MiLL (plant operation system) and WEiG iPLANT WEiGH (weighbridge load measurement system). The system has received the most enquiries from within Malaysia, but there are already existing installations in the Philippines and future plans to be implemented in Thailand and Indonesia.

The HARVi electrical FFB cutter in action. (Photo provided by IRGA)

HARVi:Battery-powered harvesting palm cutter

Electric cutters can reduce labour required for harvesting operations, which used to be done by three or four workers. Switching from conventional petrol to electric power does not only reduces CO2 emissions which in turn is good for the environment, but also reduces vibrations and improves operational safety. The prototype product is in the midst of its enhancement phase to include additional features, including GPS feature and connectivity capabilities, due to launch in 2023.

KINGOYA Agri tools:

We design and develop more than 100 different agricultural tools. Sales outside Malaysia accounts for 90% of total sales, with South American countries being the largest. The Kingoya brand is known for its high durability and quality, and repeated orders are so vast that there are even product duplicates that bear the Kingoya logo.

Did you face any challenges?

Data has been previously recorded manually, and reporting from the farm to headquarters took about 30 days. Now, by digitising the process using a mobile app, reporting can be done in less than a few seconds.

However, we cannot rely completely on cloud-based systems, as there are many plantation areas with no internet access.
Therefore, we have adopted a hybrid model. The mobile apps, data analytics and dashboards are in the cloud server, but the main core systems are still on site in the office.

What are your future plans?

We are expanding our subscription-based service offering. For farm tools and equipment, we are offering Equipment-as-a-Service (EaaS) model, in partnership with leasing companies. Farm owners can reduce the cost of purchasing equipment and are less burdened by machinery breakdowns and maintenance problems.

We are also working on Harvesting-as-a-service (HaaS), which provides skilled labour for harvesting operations. The entire process, from ordering to dispatching workers, will be digitalized and integrated with iPLANT. We are moving ahead at a rapid pace, and are looking at releasing within two years.

Regarding the shortage of human resources, the challenge is not only in the foreign workers market shortage but also in the lack of interest from younger generation in carrying on the family business onto the second or third generations. Much more advanced skills are needed to utilize technology in computer systems and mobile apps operation. We hope that the products and services we offer will continue to attract the interest in increasing utilization by the younger generation.

We want to actively work on expanding globally to other parts of the world, including countries on the equator, where the plantation industry is thriving at, such as South America, the Southwest Pacific region and Africa, in the long term. This is not easy, as the software is not as simple as just plug-and-play but instead, requires consultancy and customization. However, the market is large enough and there is plenty of demand for it. We will need to establish offices in each region to build our presence there.

Are you interested in working with Japanese companies?

We are always open to working with partners. If there are partners in Japan who have interesting solutions, we are always open to collaborating and integrating with them in providing added value to our customers.

For example, in the case of drones, we don't focus so much on research and development, as there are already many players in fertiliser and pesticide spraying, mapping, etc. However, we are interested in applications such as below canopy surveillance, mapping, and machine vison for monitoring growth of trees and fruits. There are probably a lot of challenges with connectivity, but we think it could be further developed in combination with 5G and IoT technologies. We are looking for partners to provide such services.

 
Company name
IRGA Sdn Bhd
Year of incorporation
2020
Business profile
Research and development on agricultural technology, Information technology services, Consulting
 

Editor's note: IRGA focuses on R&D and data utilization in developing plantation solution. Harish is an expert in both plantation farming and Industry 4.0 digital technologies, working closely with agricultural associations and telecommunications IT companies to build a data-driven ecosystem. Increased plantation productivity and job creation will eventually lead to food sustainability and ultimately ESG enhancement.


(Interviewed and written by Sugahara, August 2022) 

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