Agroz Inc. (NASDAQ: AGRZ)

Agroz Inc. is a vertically integrated agricultural technology company specializing in controlled environment agriculture (CEA) vertical farming. The company designs, innovates, develops, builds, operates, and manages large-scale, industrial-grade indoor farms using advanced CEA practices. Its mission centers on enhancing food safety, security, and sustainability by providing a reliable and accessible food supply through cutting-edge AgTech products and services. Agroz leverages hydroponic and aeroponic systems to cultivate crops in soil-free, controlled environments, optimizing space, water usage, and crop yields while minimizing environmental impact.

Agroz Inc. generates revenue through four primary streams: designing and constructing indoor CEA vertical farms, operating and managing these farms, selling fully operational CEA vertical farms, and selling fresh produce. The company’s design and construction services include vertical farm layout planning, infrastructure development, and the integration of its proprietary Agroz OS system, which combines automated hardware and software solutions to enhance productivity and crop quality. Operation and management services involve overseeing day-to-day farm activities, maintenance, and the implementation of standardized procedures. Additionally, Agroz sells fresh produce, including 21 varieties of leafy greens, herbs, microgreens, and fruiting vegetables, to wholesale distributors and retailers.

The company operates through the following segments:

• Design and Construction of Indoor CEA Vertical Farms: This segment focuses on creating customized vertical farming solutions for clients, from initial design to full implementation. Agroz provides end-to-end services, including site selection, structural construction, and the installation of Agroz OS, a proprietary system that integrates environmental control, water management, irrigation, lighting, and energy monitoring. The system also includes software solutions for farm organization, supported by Microsoft Azure Cloud and AI technologies.

• Operation and Management of Indoor CEA Vertical Farms: Agroz offers comprehensive farm management services, utilizing its intellectual property, including Agroz OS and standardized operating procedures. The company currently operates two vertical farms: a 10,021 square foot facility in Kota Damansara and a 5,239 square foot EduFarm at AEON Mall Alpha Angle, the largest indoor vertical farm in a Malaysian shopping mall. These farms produce pesticide-free vegetables certified under Malaysian Good Agricultural Practices (myGAP. PF).

• Sale of CEA Vertical Farms: Agroz sells fully operational vertical farms to buyers, each equipped with Agroz OS. These farms are optimized for high-yield crop production and resource-efficient management, providing clients with turnkey agricultural solutions.

• Sale of Fresh Produce: The company cultivates and sells over 50 types of fresh produce, with 21 varieties currently available in the market. Key products include leafy greens, herbs, microgreens, and superfoods such as baby spinach, kale, and arugula. Agroz distributes its produce to major retailers, including AEON and Village Grocer, and achieves higher profit margins on superfoods, which sell at an average price of MYR 9.50 with a 9% gross profit margin.

Agroz Inc. holds a distinctive position in the agricultural technology industry, particularly in Southeast Asia, where it is the only fully vertically integrated provider of CEA vertical farming solutions. Its competitive advantages include proprietary technology, such as Agroz OS, which integrates hardware and software to automate farm operations, and a strategic partnership with AEON Co. (M) Berhad, a leading Malaysian retailer. The company’s EduFarm at AEON Mall Alpha Angle serves as both a commercial farm and an educational platform, enhancing brand visibility and customer engagement. Agroz also benefits from government and institutional recognition, including certifications for pesticide-free produce and acknowledgment by the United Nations Development Programme as an active player in the CEA space. Competitors in the region include Excel Group and CityFarm Technologies, which focus on farm design and construction, as well as produce sellers like Boom Grow and Cultiveat, but none offer the full suite of services provided by Agroz.

Agroz Inc. serves a diverse customer base, including wholesale distributors, retail chains, and individual consumers. Its primary retail partners include AEON Co. (M) Berhad, which operates supermarkets such as AEON MaxValu Prime and AEON Alpha Angle, and Village Grocer. The company’s produce is also sold directly to visitors at its EduFarm location. By targeting high-demand markets and leveraging strategic partnerships, Agroz positions itself as a key supplier of fresh, sustainable, and pesticide-free produce in Malaysia and beyond.