Dr ARVIND KAPUR Managing Director ACSEN HYVEG P LTD

SEPT 19TH,2019

VEGETABLE SEED INDUSTRY CREATING AVENUE TO ENHANCE SEED TRADE

60Bn. TOTAL SEED MARKET

45 Bn. TRADED SEED MARKET

9 Bn. VO MARKET

GLOBAL SEED MARKET

0

2

4

6

8

10

12

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san

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ESTIMATED VALUE OF DOMESTIC MARKET

USD…

92%

8%

Asia

Market

$4 Bn (Grower level)

TOP 3

Country

• China • Japan • India •

Market share of TOP 3 countries in ASIA IN VEGETABLES

(M$)

Country Value

China 2500

Japan 570

India 560

Market share of Major 8 crops in INDIA

India

Market more then

INR 4000 cr

• Onion • Okra • Hot pepper • Tomato •Cauliflower •Cucumber • Cabbage •Watermelon

62%

38%

Major 8

crop’s

(INR crs)

Crop Value

Onion 650

Okra 350

Hot pepper 290

Tomato 225

Cauliflower 160

Cucumber 125

Cabbage 105

Watermelon 100

AVERAGE GROWTH 5-7%

Cauliflower9%

Okra14%

Hotpepper13%

Tomato13%

Gourds10%

Watermelon3%

Cucumber3%

Cabbage4%

Gherkin2%

Carrots5%

Melon2%

Others22%

India vegetable Industry 2018

$ 560 Mio

65% F1& 35% OP by value

Global vegetable seed market Trend

0

2

4

6

8

10

12

14

EXPECTED MARKET SIZE (Bn $)

EXPECTED MARKET SIZE(Bn $)

FOCUS IN AGRICULTURE • Improve and double farmer’s income by 2022 • Diversification in agricultural systems to reduce the

risks • Horticultural crops to be encouraged for

sustainability of farmer’s income • More crops per drop to encourage micro irrigation to

save ground water • Encouraging plant breeding innovations to tackle

biotic and abiotic stresses • Farmer Producing Organisation (FPO) to be

strengthened to protect farmer’s income

VEGETABLE SEED INDUSTRY CONTRIBUTION IN INDIAN AGRICULTURE

• More than 85% of the seeds of hybrids and OP of all vegetables is provided by the private seed companies

• The hybrid seed provided by the seed industry is suitable for all geographies and all agroclimatic zones

• Farmers prefer to buy high quality OP seed produced by seed companies due its better performance rather then saving seed

• In Major crops like Tomato, Hot peppers, Okra, the seed companies are releasing hybrids which are resistant to viruses which give farmers better income under diseases pressure

• Early maturity hybrids are available in many vegetable crops which give better commercial price to the farmers

WIDE ADAPTABILITY OF VEGETABLE SEED GLOBALLY

• The germplasm movement in vegetables seeds is much higher then other crops

• Many vegetable crops hybrid seed has performed across boundaries of the countries and that lead to higher import and export of vegetable seeds

• In vegetables, many diseases are common across continents, thus all breeders are working to control these diseases by identifying disease resistant genes

• The origin of species in vegetables are across continents and land races of those species are the best sources of valuable traits

• There are global and local crops and most of the MNC’s are having strong products in global crops due to their presence in most of the continents while in local crops, local players have dominance in releasing good products

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40% turnover of total seed business with MNC’s (Value in Cr)

VEGETABLE SEED BUSINESS TODAY

• Fast growing market to fulfill the need of per capita consumption from 180gm to 240 gm per day

• Hybridization with value addition is expanding

• Number of R&D based companies is increasing

• Consumer requirements are changing

• Number of diseases and diverse climate making breeding complex

• Type, Taste and Shelf life traits have higher ranking than yield

• Large number of products in each crop adding complexity

• MNC’s, Indian companies, traders (Importers) are part of the complexity of the business

• Quick turnover of the products is a challenge for the breeders and breeding companies

• Large number of MNC,s are already entered Indian seed market and investing heavily in infrastructures and technologies

Major Vegetable seed companies with International breeding

• SYNGENTA • RIZKWAAN

• SEMINIS (BAYER) • KNOWN YOU

• CLAUSE • NONG WOO BIO

• BASF VEGETABLE (NUNHEMS)

• SEMILLAS FITTO

• SAKATA • UNITED GENETICS

• TAKII • ASIA SEEDS

• ENZA • EAST WEST SEEDS

• UPL • CHIA TAI SEEDS

• TOKITA • BEJO

VEGETABLE SEED COMPANIES WITH LOCAL BREEDING

• MAHYCO • KRISHIDHAN

• INDO AMERICAN • AJEET SEEDS

• VNR • BIO SEEDS

• ACSEN HYVEG SEEDS • WELCOME GENETICS

• NAMDHARI • KAVERI SEEDS

• ANKUR • NOBLE

• NUZIVEEDU • NATH

• ADVENTA • JK AGRI GENETICS

5%

18%

19%

18%

7%

2%

3%

4%

5%

1%

0% 7%

2% 1%

0%

2% 2%

6%

Hybrid vegetable seed sale in India Total value $ 340 million

Water melon Tomato Hot pepper Okra Cabbage

Carrot Eggplant Bitter gourd Bottle gourd Ridge Gourd

Other Gourd Cauliflower Melons Radish Onion

Pumpkin Capsicum Cucumber

20%

0% 2%

2%

1% 4%

3% 12%

1% 1%

3%

1% 1%

7%

19%

16%

0% 4%

1%

1%

1% 1% 1%

OPV Vegetable sale in India Total value $ 220 million

BeansBeetrootBittergourdBottle gourdCabbageCarrotsCauliflowerCorianderCucumberEggplantHot pepperKnol KholMelonsOkraOnionPeasPumpkinRadishRidge gourdSpongegourdSweet pepperTomatoWatermelon

Crop GM Traits Cabbage Insect resistance Cauliflower Insect resistance Eggplant Insect resistance Okra Insect resistance Virus resistance Potato Disease resistance High protein Tomato Disease resistance Virus resistance

Technologies under development in India

ASIA TOTAL SEED MARKET • ASIAN TOTAL SEED MARKET INCLUDING ALL CROPS IS US $

17 BILLION WHICH IS ALMOST 1/3RD OF THE GLOBAL MARKET

• ABOUT $ 4 BN VEGETABLE MARKET IS IN ASIA WHICH IS ALMOST 50% OF THE GLOBAL MARKET

• THIS MARKET IS RAPIDLY EXPANDING DUE TO HYBRIDISATION AND BETTER QUALITY SEED AVAILABILITY

• FARMER SAVED SEED IS ON THE DECLINE • MOST OF THE SEED MOVED ACROSS ASIA THRU

PHYTOSANITORY CERTIFICATES AND IMPORT PERMITS • TEMPERATE AND TROPICAL MATERIAL EXCHANGED

BETWEEN THESE COUNTRIES CONTRIBUTED SIGNIFICANTLY IN AGRICULTURAL GROWTH

REGULATORY ENVIRONMENT IN ASIAN COUNTRIES

• GERMPLASM MOVEMENT IN MOST OF THE COUNTRIES IS THRU NATIONAL BUREAU OF PLANT GENETIC RESOURCES FOLLOWING PHYTOSANITORY RULES

• VEGETABLES SEEDS ARE ALLOWED THRU PHYTOSANITORY CERTIFICATES AND IMPORT PERMITS AND NO CONDITION OF TESTING THRU GOVERNMENT SYSTEMS

• COMPANIES TO COMPANIES AGREEMENT OF TESTING AT MULTILOCATIONS AND AFTER IDENTIFYING ITS SUITABILITY, THE PRODUCTS CAN BE IMPORTED OR EXPORTED

• COMPANIES ARE RESPONSIBLE FOR THE PERFORMANCE OF THEIR HYBRIDS/OP AND SUITABILITY IN A PARTICULAR ENVIRONMENT

CHALLENGES OF VEGETABLE BUSINESS • Complex traits breeding needs diverse germplasm

• Product requirements are rapidly changing due to introduction of large number products released by each company

• Due to diverse requirement of products in each crop, production of each type of products with limited quantity is a challenge

• Seed production of diverse crops under diverse climate and seasons leads to erratic seed production quantities

• Long duration of seed production of certain crops lead to more than two year inventory

FUTURE SCENARIO OF VEG.SEED BUSINESS • Crop wise competition with value added traits will increase

• With climate change/shifts ,the complexity of disease will affect the durability

of products

• Fast track breeding with new genetic technologies

• Protected and organic cultivation with specialized products will expand

• Seed enhancement technologies with counted seed of high value will increase

• Professional vegetable growers will increase and need high performing seed

• Consolidation of vegetable seed companies

• MNC’s will invest more in breeding and technologies to take market edge

• Most of the crops will have more than 80% hybridization.

• In ten year vegetable seed market will grow by 50%

• The area under vegetable growing may increase from 9.8 million ha to 12

million ha. In another ten years

• More sustainable seed business with strong systems, processes and business

plans as followed by most of the MNC’s

• Export of vegetable seed is showing increasing trend

NEXT GENERATION AGRIBUSINESS

• Conventional plant breeding will be fully integrated with technology innovations

• Genomic maps will be available for most of the crops • Functional genomics will be better explained thru high

through put technologies like allele mining and phenomics • Patent regimes will further encourage the investments • Technologies innovations will further improve the

precision • Breeding by design will change the whole process of

developing new and performing hybrids • Product development life cycle will be shortened

The Tools of Modern Plant Breeding

New Varieties Yield Trials

Product Testing

Germplasm

Development Molecular Breeding

Doubled Haploids

Winter Nurseries

Gene editing

Plant Tissue

Culture

Gene Expression

Genetic Variation Phenotypic Measurement

Genetic Associations Pedigree Analysis

Gene Discovery HTP Functional Screens

Positional Cloning

Gene Shuffling

ENABLING TECHNOLOGY PLATFORMS ENABLING TECHNOLOGY

PLATFORMS

Genetic Knowledge

Product Opportunity Trait, Crop

Objective: Maximizing Breeding Program and Native Traits

Objective: Introducing or Enhancing Attributes