Kailash Project Report

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PROJECT REPORT

ON

ANKUR SEEDS PRIVATE LIMITED

NAGPUR (M.S.)

Submitted to

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

In Partial Fulfilment of Requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(INDUSTRY INTEGRATED)

(II Semester)

Submitted by,

NAME : Kailash Somnathe

Reg. NO. :1073901744

GURU GRAM BUSINESS SCHOOL

ELC Code :151012055

Plot No 467, Near H B Town , Old Pardi Naka,Bhandara Road,Nagpur,

MaharashtraAUGUST 2011

INDEX

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y TITLE PAGEy CERTIFICATEy DECLARATIONy ACKNOWLEDGEMENTy CONTENTS

CERTIFICATE

This is to certify that Kailash Somnathe , a student of the Maharshi

Dayanand University , Rohtak , has prepared his Project Report entitled

Detail Study Of Ankur Seeds Private Limited Nagpur , at Guru


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Gram Business School , under my guidence . He has fulfilled all

requirements leading to award of the degree of MBA ( Industry Integrated )

. This report is the record of bonafide training undertaken by him and no

part of it has been submitted to any other University or Educational

In

stitution

for award of an

y other degree or simillar title or prizes.

I wish him all success in life.

Mr. Ajay Patole

Program Coordinator

Guru Gram Business School

2

STUDENTS DECLARATION

I hereby declare that Project Report Conducted at

Ankur Seeds Pvt.Ltd, Nagpur(M.S.)


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Under the guidance

of Mr. AJAY PATOLE

Submitted in partial fulfilment of the requirement

for the Degree of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated )

TO

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

is my original workand the same has not been submitted for the award of

any other Degree /diploma /fellowship or other simillar titles or prizes.

Place: _________

Date: _________

Mr. KAILASH SOMNATHE

Regn.No.1073901744

ACKNOWLEDGEMENTS

I have taken efforts in this project. However, it would not have been possible

without the kind support and help of many individuals and organizations. I would

like to extend my sincere thanks to all of them.

I am highly indebted to NIAM for their guidance and constant supervision as wellas for providing necessary information regarding the project & also for their

support in completing the project.

I would like to express my gratitude towards my parents & member of GURU

GRAM BUSI NESS SCHOOL NAGPUR for their kind co-operation and

encouragement which help me in completion of this project.


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I would like to express my special gratitude to Mr. Ajay Patole and thanks to

industry persons for giving me such attention and time.

My thanks and appreciations also go to my colleague in developing the project

and people who have willingly helped me out with their abilities.

CONTENT

CHPTER

NO.

CONTENTS SUB CONTENTS PAGE NO

1. Introduction General Introduction 8

1.1 Origin andDevelopment of theIndustry

1.2 Growth and Present

status of the Industry

23

1.3 Future of theIndustry

29

2. Profile OfTheOrganization

2.1 Origin of theOrganization

32


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2.2 Growth andDevelopment of theOrganization

2.3 Present status of theOrganization

33

2.5 Organizationstructure andOrganization chart

43

2.6 Product and Service profile of the

Organ

ization

42

2.7 Market profile of theOrganization

44

3. Discussions onTraining

SWOT analysis 50

Bibliography 51


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CHAPTER- 1

INTRODUCTION

1.1 General Introduction About Agriculture Sector

Agriculture is the backbone of Indian economy. About 65% of the population

depends directly on agriculture and it accounts for around 22% of the Indias


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GDP. Agriculture is important because of the vital supply and demand link with

the manufacturing sector. Share of agriculture sector inIndias GDP has declined

from 48% in 1950 to around 20% in 2007.

In past few years India has sustainable growth in food production and incomes

alon

g with diversification

both in

con

sumption

an

d production

. Food security an

dsustainability our major goal has been fulfilled. Now agriculture sector is at point

from where it can take big leap.

It has been growing at rate of2.2% which very Hindu rate growth. IfIndia needs

to sustain its economic growth rate of 9% in coming years agriculture sector

growth rate needs to be pushed to around 4-5% level, task seems difficult but it

can be achieved through proper planning.

NEW AVENUES INAGRI SECTOR:

Apart from basic food grain production, other agricultural activities have come up

that can lead us to next level of agricultural development. The activities are:

Livestock

Fisheries

Horticulture

Organic farming of commercial crop

STRATEGY FOR THE DEVELOPMENT

Need for public private partnership in policy development and research.

Linking of markets-domestic and international through efficient supply chain.

Turning agricultural sector into organized business. Where farmer is an

entrepreneur.

Making farming an activity for profit rather than for subsistence. India being so

diverse in climate, soil types, geography and all the more disparities in the growth

level in different state, it is utter most important to plan growth through micro

level initiatives.


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The strategy paper of eleventh five year plan has laid out target for the following

in order to meet the five year:

Plan for developing rate of growth of irrigated area.

Improving rain water harvesting and watershed development.

Bridging the knowledge gap through effective extension.

Diversifying the high value output.

Access to affordable credit. Improving incentives structure and functioning of the

market.

Refocus on land reforms.

Promote animal husbandry and fisheries.

ANNUAL GROWTH RATE AGRI SECTORAND SHARE OF AGRI

SECTOR IN GDP AT 1999-2000 PRICE:

YEAR ANNUAL GROTH RATE IN %

2000-2001 O

2001-2002 5.9

2002-2003 -5.9


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2003-2004 9.3

2004-2005 0.6

2005-2006 5.8

CHALENGES IDENTIFIED TO INCREASE GROWTH OF AGRI

SECTORS:

Declining Productivity.

Poor irrigation and water management.

Declining agricultural research.

Distorting market due to government intervention.

Declining public and private investment.

Unorganized credit and insurance.

Poor infrastructure.

Inefficient supply chain and marketing strategy.

Slow development of agro processing units.

Indian productivity compared with world best:Agriculture being constrained by the availability of land, the productivity remains

the crucial factor based on which is the future ofIndias food security.

FOOD ITEM YIELD(INDIA)

Unit:Ton per

hector

POTENTIAL

YIELD

HIGHESTIN

WORLD

RICE 3.03 9.71(EGYPT)

WHEAT 2.69 8.89 (NAMIBIA)

TOTAL 2.39 10.41 (IRELAND)


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CEREAL

PULSES 0.6 5.14

(BARBADOSO)

EDIBLE OIL

SEEDS

0.25 42.9 (PERU)

SUGARCANE 6.07 122.7 (MALAYSIA)

Poor irrigation and water management:

Irrigation and water management is the most important issue on which growth of

agri sector largely depends. Still the agriculture sector largely depends on the

monsoon. The irrigation potential ofIndian agri sector is 140 million hectares of

which only 70% is being exploited.

Public and private investment in agriculture sector:

Indian agriculture sector is in dire need of investment to meet the expenses of

irrigation, research and development, rural infrastructure and electricity to further

increase the productivity and strengthening the agri sector inIndia.

GROSS CAPITAL FORMATION INAGRICULTURE AT 1999-00 PRICE:

INVESTMENT INAGRICULTURE SECTOR(Rs Crore)

YEAR PUBLIC

SECTOR

PRIVATE SECTOR TOTALINVESTMENT

1999-

2000

1716 35757 43472

2000-

2001

7155 31580 38735


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2001-

2002

8746 38297 47043

2003-

2004

7962 38861 46823

2004-

2005

9376 35766 45132

2005-

2006

10267 38309 48570

2006-

2007

13219 41320 54539

Agri credit and insurance:

There is need to increase credit and insurance policies for the farmers. There

are incidences of increase in farm debts, primarily due to lack of organized

credit. It has also been pointed out that due to lack of credit availability that

adoption of improved seeds, fertilizers and modernization could not be taken

up.

New marketing and supply chain model:

Agri sector requires revamping of all the level of supply chain input delivery,

credit, irrigation facility, farmers diversifying, cold storage chain, better and

efficient marketing technique, efficient processing, warehousing and

competitive retailing.

WTO AND INDIANAGRICULTURE:

India has been emphasizing that the WTO agricultural agreement must

include:

Removal of distorting subsidies by the developed countries to level the


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playing field.

Appropriate provision designed to safeguard food and livelihood security and

to meet the rural development needs of developing countries.

India has also taken the stand that the government must foster stable and

remunerative prices for domestic producers in order to increase productivity

and gradual move away from dependence on low productivity agriculture. For

these meaningful and effective instrument i.e.; special products and special

safeguard mechanism is important for developing countries like India.

WHY WE ARE BULLISH ONAGRICULTURE SECTOR:

In order to have food security government have to restructure the agriculture

sector. We expect significant step in coming years will be taken like collective

farming or maybe corporate farming. So that yields increases. Agricultural

sector is at the cross road of structural change.There is supply demand mismatch of agri product across the globe which is

pushing the price northward. Increasing price will enhance the profitability of

agriculture sector and hence smart money will flow into the sector.

The arable land is limited in supply it cannot be increased. So supply

constraint will remain. Only way to fill the gap of demand and supply is by

increasing the agriculture productivity.

Ever increasing population will demand more food and hence increase in price

of food product.

The rural India innot leveraged and hence companies will move rural sector

fornext growth. This will increase employment opportunity in rural India and

hence decrease burden on agriculture sector. This will help government in fine

tuning the policy for agriculture sector in terms of lands.

NAME PRODUCT SALE IN

CRORE

MARKET PRICE IN

Rs.

RCF FERTILISER 8455 76.85

RALLIS PESTICIDE/CHEMICAL 852 615

MONSANTO PESTICIDE/AGROCHEMICAL 391.25 1570


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UNITED

PHOSPHOROUS

CHEMICAL SPECIALITY 2437 144

JAIN

IRRIGATION

DRIP IRRIGATION 2188 650

ADVANTA SEED /TISSUE CULTURE 129 646

M& M TRACTOR 3093 712

DCM SHRIRAM DIVERSIFIED 3596 52

CHAMBAL FERTILIZER 4643 65

TATA CHEMICAL CHEMICAL/INORGANIC/CAUSTIC 8574 221

COMPANIES INAGRICULTURE SECTORS AND ALLIED ACTIVITY:

CONCLUSION:

This is the need of the hour that government should look towards the rural India.

We expect the budget to shower blessing on the agricultural sector. Government is

expected to increase spending in the agricultural sector to boost the share of

agriculture in GDP.

The increasing price of agriculture product is shifting the focus of the company

from urbanIndia towards rural India. Increasing price is making the farm produce

more profitable and hence increasing the disposable income of the rural India. Thecompany associated with the agri economy is expected to do better in the coming

years.

The agricultural sector is safe bet and has not got affected by the down turn in the

global economy. This is because it is the necessity of every individual rather than

luxury. The demand supply gap also makes it safe bet.


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We advice our long term investor to take exposure in the companies related to

agriculture sector.

Climate:

India has Monsoon climate in which a year has been divided into two distinctseasons of summer and winter. Rainfall occurs mainly in summer.

Agro Climatic Zones:

India has diverse agro-climatic zones from north to south and from east to west. It

has been divided into fifteen different agro-climatic zones, which signifies its

diversified agricultural production from tropical to temperate crops.

Major Crops:

Rice, Wheat, Sugarcane, Oilseeds, Pulses, Cotton, Jowar, Bajra, Ragi, Tea,

Coffee, Coconut, Cashew, Rubber, Spices, Cauliflower, Onion, Cabbage, Mango,

Banana, Sapota, Acid lime.

Farm Size:

Indian Agriculture is characterized by small and marginal operational holdings.

About 85% of total cultivated land has been fragmented into less than 10-hectare

land. About 60% of farmland is less than 4 hectare in size.

Growth prospects:

Agricultural growth is essential for the sectors progress and for overall growth of

Indian economy. This growth rate is also a sort of essential condition for

improving living standard of those who are dependent on agriculture. The main

goal of National Agricultural Policy to achieve growth rate higher than four

percent seems to be formidable task particularly when we look at historical rate of

growth inIndian agriculture. As can be seen that growth rate inIndian agriculture

in the post Independence period is found to be 2.55 percent per annum. This

growth rate includes contribution of technological breakthrough of green

revolution and major expansion in irrigation and in area under cultivation. Out of

these three sources of output growth the scope for expansion of cultivated area is

much more limited in future compared to that experienced in the past. Net

cultivated area (NCA) has become stagnant at 142 million hectares (Table 2) and

unless serious efforts are launched to bring wastelands under cultivation there

would be no scope to expand NCA. However cultivated area as such can be


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expanded by raising more number of crops on the same piece of land i.e. by

raising crop intensity. This expansion depends heavily on provision of irrigation.


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1.2 INDUSTRY PROFILE

SEED INDUSTRY

The Indian seed industry is the eighth largest in the world with an estimated value

ofINR 49 billion (USD 1.06 Billion) and with an annual growth rate of 12% to 13

%. The industry has shown a buoyant growth over the last two years on well

supportive monsoons. The development of private seed industry is no more

confined to just production and marketing of seed. It has well acquired

technological strength to cater to the varietal needs of tomorrow. Along with

industries Indian farmers have in recent years adopted intensive cultivation

practices in order to meet the growing demand for agricultural produce.

If we look at the production capacity 70% of Indias seeds sales come from

farmer bred seeds, 26% from those bred in publicly financed institutions, and only

4% from researched hybrids. The domestic hybrid seeds market is placed at INR

4.9 Billion and is annually growing at 10% a year, against the 5% global growth

rate. Here, majors players like Monsanto India and Syngenta India dominate the

hybrid seed market. The home market works out to about 3.7% of the global

market.

As the organized Indian seed industry is just forty years old. Yet, its growth has

been phenomenal. India is among the few countries where the seed sector is

already reasonably adva

nced.

One hundred fifty years ago the United States did not have a commercial seed

industry; today we have the worlds largest. Some view this as real progress, a

form of genetic Manifest Destiny. A nation once a debtor in plant genetics now

supplies the world. In 1854, seeds were sourced in the U.S. by way of a small

number of horticultural seed catalogs, farmer (or gardener) exchange, on-farm

seed saving, and through the beneficence of the United States government.

Specifically, beginning in the 1850s, the U.S. Patent and Trade Office (PTO) and

congressional representatives saw to the collection, propagation and distribution

of varieties to their constituents throughout the states and territories. The program

grew quickly so that, by 1861, the PTO had annual distribution of more than2.4

million packages of seed (containing five packets of different varieties). The flow

of seed reached its highest volume in 1897 (under USDA management) with

more than 1.1 billion packets of seed distributed. The governments objectives in

funding such a massive movement of seed stemmed from the recognition that


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feeding an expanding continent would require a diversification of foods. To the

early colonies, the introduction of wheat, rye, oats, peas, cabbage and many other

vegetable crops was as critical to food security as was the adoption of the corn,

beans and squash. Immigrants were encourage to bring seed from the old country,

foun

din

g fathers such asT

homas Jefferson

en

gaged in

seed-exchan

ge societies,and by 1819 the U.S. Treasury Department issued a directive to its overseas

consultants and Navy officers to systematically collect plant materials.

The first commercial seed crop was not produced until 1866cabbage seed

produced on Long Island for the U.S. wholesale market. The industry flourished

to some degree, but early seed trade professionals felt their growth was stymied by

the U.S. government programs as well as the self-replicating nature of their

product (that is, the factory contained within that product). In 1883, the American

Seed Trade Association (ASTA) formed and immediately lobbied for the

cessation of the government programs. The organization developed powerful

allies, such as Grover Clevelands Secretary of Agriculture, J. Sterling Morton,

who wrote that the government giveaway was antagonistic to seed as a

commodity-form and in direct competition with the private seed trade. But the

program was very popular with constituents, and the USDAs seed budget was

kept intact at one point counting for a full 10 percent of the agencys overall

annual expenditures.

In the early part of the 20th century, the first wave of hybrids began to provide

seed companies with a potential increase in product profitability (as farmerswould now need to return to the seed distributor for materials each year).

However, most of the hybrid development was occurring at Land Grant

Universities, and these universities refused to give the companies exclusive rights

to the seed. Once again, the industry felt its growth hindered by federal programs

and complained of unfair trade practices. Mounting data also indicated a slowing

in yield increases from seed developed in government programs. The industry

used this last point to strengthen its argument for the privatization of seed

development in order to foster greater food security.

In 1924, after more than 40 years of lobbying, ASTA succeeded in convincing

Congress to cut the USDA seed distribution programs. The USDA still supported

breeding at the state agricultural schools, and for a time these programs continued

to compete with seed companies by developing finished commercial varieties.

Associations such as the American Society of Agronomy and American Society of

Horticulture Science eventually convinced the public programs that their


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appropriate role was in training plant breeders, performing fundamental research,

and creating raw materials and technologies for private industry to capitalize on.

The LGUs began to increasingly serve in this capacity, developing inbred parental

lines and breeding stock that the seed trade would use to create proprietary

varieties.

These changes in the public role, along with improvements in hybrid techniques,

led to the growth of the seed trade following World War II. The trade was well

represented during this period by regional companies. The conversion to

monocropping and large-scale corporate agriculture had not yet moved into full

swing. The Santa Clara Valley grew vegetables and fruit and not internet startups,

and Americans still planted their Victory Gardens. The seed trade reflected this

diversity in food production.

In the 1960s, a few larger seed firms began to purchase smaller companies (mostlyto acquire strong hybrid holdings). But the consolidations of this period were

minor compared to the frenzy that would come with a Supreme Court ruling on

June 16, 1980, in the case of Diamond v. Chakrabarty. Prior to the Chakrabarty

decision, a plant (or animal) could be owned, but the genetics could not. This case

cleared the patenting of life forms on the bases of their genetic coding. The PTO

granted more than 1,800 such patents following the ruling. Companies that had no

historical seed interestsprimarily chemical and pharmaceutical firmsbegan

purchasing seed companies. In a few short years, there were billions of dollars in

mergers and acquisitionswith little to no regulatory oversightcreating for thefirst time a majority ownership of plant genetics by a few multinational

companies. No othernatural resource (marine, timber, minerals) has ever shifted

from public to private hands with such rapidity, such intensity of concentration,

and so little oversight..

Indias seed industry has grown in size and level of performance over the

past four decades. Both private and public sector companies/corporations are

involved with the production of seed. The public sector component comprises two

central corporations, viz. National Seed Corporation (NSC) and State Farm

Corporation of India (SFCI) and 13 State Seed Corporations. The private sector

comprises around 150 seed companies, which include national and multinational

companies and other seed producing/selling companies. The industry has made

impressive strides from a modest beginning in seed production in 196263 to

over 5 lakh hectares by 199596. The quantum of seed produced and sold has

gone up by five times from 14 lakh quintals to 70 lakh quintals during the


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corresponding period7. In 199091 the area planted with bought seed was about

10.35%. The total bought seed in 199091 was estimated at around 5.91 lakh

tonnes valued at Rs 679.80 crores

This seed component in 199091 comprised of proprietary hybrids, public-bred

hybrids and open-pollinated varieties. In terms of quantity and value, seed of

open-pollinated varieties was the largest followed in order by public hybrids and

proprietary hybrids. Seed of he proprietary hybrids formed a significant portion of

the total seed market. In terms of quantity, although proprietary hybrids had only

32.34% share of the market, in terms of value the share was 76%. In contrast to

the 1991 scenario, the estimates in 199899 presented a different picture with

proprietary hybrids growing at the expense of the public hybrids. The area planted

to bought seed increased by 3% over that of 199091 and the market size

expanded significantly in terms of quantity and value. The total market for

purchased seed was 8.64 lakh tons valued at Rs 2249 crores. The component of

proprietary hybrid seed was estimated to be around 51,314 tonnes in 199899 as

against 19,300 tons in 199091 and valued at Rs 636 crores as against Rs 95

crores respectively. The volume of public bred hybrids came down to 38,704 tons

in 199899 as against 59,671 tons in 199091. The volume of seed of open

pollinated varieties (OPV) increased by 51% to 774,881 tonnes (tables 3 and 4).

The present contribution of OPV in the total bought seed market segment has

expanded indicating greater use of bought seed by farmers. The price paid by

farmers for all hybrid seeds was higher than that in 199091. The trend is

suggestive that price of seed is not considered a constraint in usage by the farmers,

if the seed ensures higher return through higher productivity and other value

added traits8. Table 5 gives data on the quantity of seeds marketed in 199091

and 199899 for cereals, oilseeds, fibres, potato.

b. GROWTHAND PRESENT STATUS OF SEED INDUSTRY

Seed, being the basic and most critical input, occupies a prime position in case of

agricultural production. Indian seed industry is at the 5th joint position with Japan

and Germany in the world with revenue of US $1.5 billion and is growing at the

rate of 12-13% over the past few years. With lower seed replacement rate in most

of the crops, cotton and some vegetables being exception, the potential for market

expansion is high. Hybrids are being used in case of cotton and to some extent in

corn, millet, sunflower and few vegetables. Based on estimation, the contribution

of quality seed alone to the total production is about 15 20% depending upon the

crop and it can be further raised up to 45% with efficient management of other


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in puts. Nevertheless, the awareness and attraction towards switching to high

yielding hybrids is increasing at a fast rate Private sector seed companies play a

major role in seed development, marketing and distribution. The governments

decision to utilize biotechnology as a means for achieving food security, has made

several leadin

g biotechn

ology focused multin

ation

al seed compan

ies en

ter theIndian market. The private sector accounts for 70% of the market in terms of

market turnover whereas the public sector has the greater share in terms of volume

sales.

Global and Indian Scenario

The world seed market is of the value US $40 billion. The top 10 companies cover

almost 2/3rd of the revenue. Monsanto is the leader with revenue of US $5000

million, followed by DuPont and Syngenta. The revenue also includes income

from licensing and sub licensing for utilizing biotech traits. India with a fastgrowing market houses around 400 companies, which include both indigenous

and foreign players. These can be categorized as:

1. Seed Giants - Monsanto, PHI, Bayer, Syngenta etc.

2. Mid Size growing Companies - Nuziveedu Seeds Ltd, MAHYCO, Advanta

India Ltd., JK Agri Genetics Ltd., US Agri Seeds, Shriram Bioseed Genetics Ltd.

etc.)

3. Mid Size Constant Market Share Companies - Krishidhan Seeds, Ganga KaveriSeeds, Ajeet Seeds, CP India Ltd etc.

4 Small Size Companies - Yashoda Seeds, Doctor Seeds etc

The commercial seed market in the country accounts for25% of the total market

potential and the remaining 75% is dominated by varietal seeds that farmers retain

from prominent food and commercial crops. The public sector, led by National

Seeds Corporation Ltd and 13 other State seed corporations, supplies high volume

and low value seeds of improved varieties of cereals, pulses and oilseeds


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Evolution of the Indian seed industry

Initially, the two national organisations National Seeds Corporation (NSC) and

State Farms Corporation of India Ltd (SFCI), were the prime players. Set up in

1963, NSC was assisted by Rockfeller foundation and USAID for seed quality

control and production. SFCL was established in 1969 followed by State Seed

Corporations. Private seed firms slowly emerged throughout the 60s and the 70s,

with a number of them benefitting from NSCs technical assistance. Presently

public private partnership is being given emphasis in order to take the technology

to the last farmer.

Introduction of New Seed Development Policy (19881989) was one of the

significant steps in modernising the Indian Seed Industry. The policy made way

for the farmers to the best of seed and planting material available anywhere in the

world. The private seed industry is thus undergoing a phase of transition withintense international competition, increasing R&D costs, and the complexity of

biotechnology leading to increased consolidation of the industry with several of

the large and medium companies merging or being taken over by multinational

seed companies. Most large multinational seed companies now have their

presence in India (either as a joint venture or with 100 percent equity) with their

main focus on biotechnology.

With respect to the legislative governing bodies, The Seed Act of 1966 and the

Seed Control Order were followed earlier. However the new proposed Seed Bill

2010 has several supportive amendments and the following are the few salient

features:

y Registration made compulsory for all kinds or varieties of seeds to be sold in thecountry. Selling or supplying any seed which is not of a registered kind/variety is

prohibited. Farmers have been exempted from compulsory registration.

y Penalties proposed in the Bill are more stringent than prescribed in the existingSeed Act.

Seed Production System in India:

InIndia, the seed production and multiplication follows the limited

generations system in a phased manner There are three generations namely


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breeder, foundation and certified seeds ensuring quality and genetic purity till the

seed goes to the soil.

Breeder Seed

Breeder seed refers to the progeny ofnucleus seed of a particular variety and isproduced by the originating or sponsored breeder. Breeder seed production is the

mandate of the Indian Council of Agricultural Research (ICAR) and is being

undertaken with the help of;

a.ICAR Research Institutions, National Research Centres and All India

Coordinated Research Project of different crops

b.State Agricultural Universities (SAUs) with 14 centres established in different

States

c.Sponsored breeders recognized by selected State Seed Corporations, and

d.Non-Governmental Organizations.

ICAR also promotes sponsored breeder seed production programme through the

National Seeds Corporation (NSC) / State Farms Corporation of India (SFCI),

State Seeds Corporation (SSCs), Krishi Vigyan Kendras (KVKs) etc.

Foundation Seed

Foundation seed is the progeny of breeder seed and the responsibility for

production of foundation seed is taken up by the NSC, SFCI, State Seeds

Corporation, State Departments of Agriculture and private seed producers, with

the necessary infrastructure facilities. Foundation seed is required to meet the

standards of seed certification prescribed in the Indian Minimum Seeds

Certification Standards, both at the field and laboratory testing.

Certified Seed


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Certified seed is the first generation of foundation seed, for which it is a must

to meet the standards of seed certification as per the Indian Minimum Seeds

Certification Standards, 1988.

The production and distribution of quality/certified seeds is primarily the

responsibility of the State Governments. Certified seed production is organized

through State Seed Corporation, Departmental Agricultural Farms, and

Cooperatives etc. The distribution of seeds is undertaken through a number of

channels i.e. departmental outlets at block and village level, cooperatives, outlets

of seed corporations, private dealers etc. The private sector has also started to play

an important role in the supply of quality seeds of vegetables and crops like hybrid

maize, sorghum, Bajra, cotton, castor, sunflower, paddy

Industry Statistics

The seeds can be classified as Hybrids, OPVs and propagating materials in case

of Field crops and Horticultural crops. However, the market trend is towards

hybrids and major resource utilisation is for developing high yielding hybrids with

improved traits of pest and disease resistance. Owing to their higher yield

potential, hybrids are being projected as the solution for food security. But the

farming community is yet to completely adopt hybrid crops. In case of paddy, the

area under hybrids is 3%, while it is 30% in Maize.

However Bt cotton hybrids made a revolutionary impact, as India became a net

exporter of cotton. The area under hybrid cotton is around 8.4 million hectares

(almost 90% of total area) and this is a phenomenal increase from a mere 50,000

hectares in2002. Hence it is very evident that Cotton occupies the major share of

revenue for private players in case of field crops with Maize, Sunflower, Bajra

and Jowar to follow respectively.

In case of horticultural crop, vegetables occupy a prime position. Even here for

the private firms, hybrids form a major revenue earner. The hybrid vegetable seed

market in India is estimated to be US $40 million. Tomato occupies the 1st

position with 20% of the market followed by okra and cabbage. Vegetable seeds

play major role in export and import, as they constitute nearly 40% of the total

seed traded.

R&D focus


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With respect to the cost aspects of the companies, around 15-18% of the revenue

is spent of R&D by each company and R&D budget allocation of medium sized

companies is growing at the rate of20%. However scarcities of labour and skilled

professionals, which form the basic need for seed production, are driving the cost

of seed high. Bt techn

ology bein

g path breakin

g in

the in

dustry, compan

ies aretrying to expand the same into several crops and Brinjal being the most innews in

the recent days. Several international institutes and scientific organisations are

conducting intense study in areas viz. fortification; transgenics etc and the results

can be expected in few years to drive the world marke

Conclusion

Indian seed industry with its considerable growth rate and increasing R&D is

expected to rise to a higher level in the international market in the future years.

Consolidated effort and focus from both public and the private sector can drive themarket towards a farmer friendly and growth oriented industry.

FUTURE OF SEED INDUSTRY

Indian agriculture future of seed ranks second only to USA in sheer size

of agriculture. By industry

virtue of its large arable land area, sizeable irrigated area,

rich agri-biodiversity, diverse agro climate and well- Accounting forapproximately 30% of the national GDP, developed research system, the

country has all the agriculture is the backbone of Indian economy. It is the

potential to emerge as a global power in agriculture. The source of livelihood for

over 70% of its population. impressiv growth registered in agricultural production

in Having the largest arable area (170 million ha), India general and food grains

in particular during the last 30 years has made the country self-sufficient in

cereal grain with a sizeable surplus which can be exported. Even to remain where

we are today in terms of level of per capita consumption of food, the country has

to add another 40 million tonnes by 2010 (refs 9, 10). With no more arable landand productivity of major crop plants

plateauing, the prospects of achieving the target especially with the aid of

currently available technologies is a challenging proposition. Many of the

problems that impede the productivity of our varieties and hybrids have defied

solution through conventional breeding approach. These include wide- spread


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moisture stress (> 65% of the area particularly under rainfed and dryland

conditions), expanding sali- nity, new pests and biotypes of higher virulence and

poor shelf-life.There is thus a distinct need for innovative technologies to find

solutions to existing and emerging problems and thereby increase the overall

productivity an

d stability of our major crops. Un

like in

developed coun

tries,population growth inIndia is far in excess of its growth in agricultural production

warranting continued in puts to achieve a steady increase in food production.

The route to increase in production lies through improved agronomic practices

and availability of high quality seed1.


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CHAPTER 2 PROFILE

OF THE

ORGANISATION


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PROFILE OF THE ORGANIZATION

COMPANYNAMEANKUR SEEDS PRIVATE LTD.

RANK 11th

MARKET PRICE 325 Rs

MD M. G. SHEMBEKAR

BUSINESS

AGRI-BUSINESS IN FIELD CROP,

VEGETABLE & TRANSGENIC CROPS

START-UP YEAR 1976

SECTOR PRIVATE

LEVEL OF OFFICE HEAD OFFICE

LEVEL OF

COMPANY

INDUSTRY BASED


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COMPANYNAMEANKUR SEEDS PRIVATE LTD.

NO. OF EMPLOYEE 351-500

TOTAL

TURNOVER

10-100 CRORE

PINCODE 440018

ADDRESS 27, NEW COTTON MARKET LAYOUT,

NAGPUR - 44OO18

TEL:NO. 91-712-2726148; 2725117

WEBSITE www.ankurseeds.com

The company sold 15 lakh packets of BG-I and 9.50 lakh packets of BG-II in

almost all the cotton growing states of India during the fiscal.


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Ankur Seeds Private Limited, a forerunner in marketing of insect resistant

cotton hybrids in the country, increased its market share in Bt cotton substantially.

The total revenue of Ankur Seeds for FY 2010-11 was 325 crore.

The company sold 15 lakh packets of BG-I and 9.50 lakh packets of BG-II in

almost all the cotton

growin

g states ofIn

dia durin

g the fiscal. For distribution

ofits products, the firm has a well spread marketing network in 16 states of the

country, head office in Nagpur, 11 regional offices and six area offices.

The company organizes several regional demonstrations across the country which

is attended by 100,000farmers every year. The company has organized seven

regional demonstrations in the previous year and invited over 50,000 farmers to its

programs.

It started its research activities in cotton, okra, brin jal and chillies and has

expanded to more than 15 crops. The R&D of the company is recognized by the

Department of Scientific & Industrial Research (DSIR) and the company also

received the National Award for excellent R&D achievement from Government

of India in 1996.

Ankur Seeds has production and processing facilities spread across the various

potential production areas of the country.

The company has 11 state-of-the-art processing plants, with production capacity

of over 16,000 tons; a dehumidified storage capacity of 5,000 sq m for medium

term storage and 10,000 sq m of warehouses. Its products like Akka-Bt, Jai-Bt in

cotton; Sonam & Rupali in paddy; Ankur 40 in okra; Ankur32 in chilly; tomato

1001; Ajay, Kirti, Utkarsh in brinjal; Latika in ridge gourd; Shreya and Karishma

in bitter gourd have become extremely popular with the farmers.

In the year2010-11, Ankur Seeds applied for registration of 14 varieties in PPV

and FRA and it also released more than 20 varieties of commercial crops.

Ankur Seeds has invested significantly in marker-assisted breeding projects for

developing drought and disease resistant varieties in vegetable and rice. To

achieve this it has collaborated with national and international institutes.

Screening of drought resistant cotton transgenics is under process as per the

guidelines of DBT and will also apply for the event selection trials for Bt brinjal

that has been developed by the company.

In brin jal, the company has successfully developed cytoplasmic genetic male

sterility, which will have long term benefits in hybrid seed production technology

in brinjal.

The company has also procured a gene for insect resistance from the Indian

Agricultural Research Institute in 2009, work on which is presently underway.


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Ankur Seeds also signed a memorandum of understanding (MoU) with the

International Centre for Genetic Engineering & Biotechnology to work on a

research project on development of virus resistanc in okra.

Ankur Seeds Private Limited is a fully integrated seed organization

involved in the wide range of crops and marketing activities across the

country.Established in 1976, with its head office in the heart of central Indiaat

Nagpur, the company has been working relentlessly to uplift the

farmers' state through extensive Research & Development and rendering

quality seeds and services to meet the changing requirements of the

farming community.

For its excellent R&D achievement, Ankur bagged the most coveted

National Award from the Government of India in 1996. Many of the hybrids

developed by Ankur Seeds in Cotton, Paddy, Bajra, Maize, Okra, Brinjal,

Chilly and Watermelon are becoming instant hit and continue to be on top

of the farmers' mind. Its products like Akka-Bt, Jai-Bt in cotton; Sonam

& Rupali in paddy; Ankur 40 in okra; Ankur 32 in chilly; tomato 1001;

Ajay, Kirti, Utkarsh in brin jal; Latika in ridge gourd; Shreya andKarishma in

bitter gourd have become over the counter products.Keeping in mind the fast

changing future marketing scenarios, Ankur has focused its attention on

biotechnology to develop transgenic crops for resistance to biotic and abiotic

factors. The company pledges to use biotechnology for the benefit of the

humankind with due consideration to the safety of all the living being

and the environment.

Solid scientific base, competent production wing and professional

marketing team are assets of the company and secret for its success.

Mission

Three dynamic young agriculturists Ravidada Kashikar, Laxmandada

Aurangabadkar and Madhavrao Shembekar started on a mission, a mission to

provide quality planting material suitable for the Indian subcontinent, to bolster

the green revolution to the other parts of India.Thus was born Ankur Seeds. The mainstay of a successful crop being in

the quality of seeds sown, Ankur aimed at providing high quality seeds

to the farmer community at reasonable prices. Ankurs aim has also been to

convince the farmers about the beneficial use of high yielding

hybrids to local varieties and thus enhance production.


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Infrastructure

Beginning with a modest office of a little over 200 sq. ft in 1976 and

an initial production of 150 quintals Ankur received an overwhelming

response from the people of Vidarbha for its public bred varieties of

cotton

, jowar an

d okra.T

he compan

y then

expan

ded its production

acitivities to Andhra pradesh, Gujrat and other parts of Maharashtra.

TestingFacilities

For a vast country like India with varied soil and climatic conditions

production of seeds suiting each climatic and soil type was imperative.

Ankur launched its research and development activities in 1978 with a

view to providing innovative, exotic and more farmer friendly planting

material to the farmers. Ankur commenced its research activities in

vegetable crops like okra, hot pepper, cowpea, egg plant, cucurbits and

field crops like cotton.

The companies remarkable research achievements were recognized by the

DSIR government of India in 1993.

The companies testing laboratory at Kinhi provides testing facilities

for Biochemical Analysis, Fibre Testing, Molecular Biology, Tissue

Culture, Soil & Plant Analysis, Plant Physiology, Cytology, Plant

Pathology & Microbiology.The company has various regional research stations for multi location

trials of advanced generation material. Ankur has realized the future

need of the industry and has geared up for the same. Biotechnology

through bio safety for the benefit of mankind is ankurs vision for the

future.

Ankur has ventured into the field of transgenic research which includes

incorporation of insect tolerance in cotton by using Cry I Ac and Cry X

gene. The future projects include incorporation of drought tolerance

traits, improvising the quality of vegetable crops like delayed ripeningof the tomato.

Research&Development

In today's world of fierce competition, significance of employing latest

tools & techniques and making use of technological and scientific

breakthrough in developing new products play a major role in providing

competitive edge.


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Ankur has acknowledged the same beforehand and considers biotechnology

as a precious asset for improving and hastening the breeding programmes.

It simplifies the techniques of breeding and the generational studies of

the gen otypes and their characteristics are made easier by the

techn

iques such as AFLP, RAPD, RFLR Molecular markersn

ow easilyidentify the desired genes of interest in the initial generation itself.

Resistance traits of wild species against biotic and abiotic stresses

are being transferred by wide hybridization with the aid of embryo

culture and somatic fusion techniques. Keeping pace with the

developments in the field of plant biotechnology, Ankur has also

ventured in the field of transgenic research. The company has already

given transgenic cotton hybrids having bollworm and spodoptera

tolerance. Furtheron, it has been working on incorporation of tolerance

to abiotic stress and improvement in the quality of vegetables in

particular.

We do use molecular marker assisted selection methodologies for speeding

up the breeding process. We have also been developing genotypic markers

for various traits with the use of near isogenic lines that are

developed through the breeding programmes.

The company has a tissue culture division that can support in

transformation work. It is capable in supporting wide hybridization and

somatic fusion experiments. Company is also working on different

techniques for fingerprinting of its genotypes.

Greenhouse and laboratory facilities created by Ankur comply with the

norms set by Department of Biotechnology, Government of India. The

company pledges to use biotechnology for the benefit of the humankind

with due consideration to the safety of all the living being and the

environment.

Production&Processing

Beginning with a modest office of a little over 200 sq. ft in 1976 and

an initial production of 150 quintals Ankur received an overwhelming

response from the people of Vidarbha for its public bred varieties of

cotton, jowar and okra. The company then expanded its production

acitivities to Andhra pradesh, Gujrat and other parts of Maharashtra.

With an ever increasing demand for its quality seeds Ankur started

production in its own processing units in the year 1983 at Tirupati and

Kisanagar.


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The company provides employment opportunities to over 30000 persons

annually through its contract farming practices. These persons residing

in various parts of the country undertake seed production for the

compan

y un

der the able guidan

ce of our profession

als.T

he staff workshand in hand with the growers to check the isolation, genetic purity and

health of the seeds in the field to facilitate production of excellent

quality seeds. The company also provides guidance to the farmers in the

use of fertilizers. Thus the farmers gain expertise even for independent

cultivation of various crops.

The company has eleven state of the art processing plants with a

production capacity of over 16000 tons, a dehumidified storage capacity

of 5000 sq m for medium term storage and 10,000 sq m warehouses. Our

processing plants are one of the best in the country equipped with the

most modern technology.The plants provide facilities for drying,

pre-cleaning, ginning, delinting, gravity separation and fungicidal

treatments.

The seeds are subject to stringent quality control measures. The seeds

are tested for their germination, moisture content and weed seeds during

the laboratory tests. The genetic purity, seed health and vigour are

tested before the seeds are marketed. The company has also achieved high

levels of seed purity with the genetic male sterility techniques. The

failure percentage of our seeds in the lab and field tests is not even 1%.

The company has autopacking facilities for its products which ensure

airtight packing and accuracy in weight.

Marketing

With a Head office in Nagpur, 11 regional offices and 6 area offices

Ankur has a network covering all major states of India. The company

organizes several regional demonstrations across the Country which is

attended by 100 thousand farmers every year.

The company has organized seven regional demonstrations in the previous

year and invited over 50,000 farmers to its programs. This activity is

skillfully handled by the competent marketing team.

The members of the marketing team are in close contact with the farmers

from the point of sale of seeds to the time the produce is ready. The

marketing team together with the distributors and dealers provide

valuable information to the farmer for helping him in optimizing his output.


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FORWARD LOOKING OF COMPANY

It gives us immense satisfaction in bringing out the new updated version of

Company catalogue encompassing all important product details with the

blessing and inspiration of the Almighty.

Demand generation at end user level to promote the range of company products.

Successfully


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organizing and conducting farmer training camps, group meeting & mega farmer

meeting for educating the farmers about the new products and our benchmarking

products.

Strategy implementation, Rolling forecasting, and finally to achieve targeted

annual sales & collection.

Conducting demonstration ofnew seeds in farmer fields and providing feedback

to Management.

Providing technical support to other Junior staff (Field Assistant & Sales

Officer) regarding company products & Seeds & new Strategies.

Day to day co-ordination with RSMs & HO for Management Information

Systems.

Support promotional Activity work for GM & Ass.GMs.

Result oriented channel management (Maintaining Farmers, Dealers &

Distributors Channels)

Making analysis reports ofTarget vs. Achievement, Expenses vs. Sales.

Customers satisfaction is the motto of the company.


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Products & Services

Cash Crops

* Cotton (Akka Bt )

* Cotton (Jassi BG-I

* Sunflower (Ravikiran-1)

Field Crops

* Corn / Maize (Arun)

* Corn / Maize (Bhanu)

* Corn / Maize (Bhaskar)

* Corn / Maize

* Mustard (Ankur Sonika)

* Mustard (Ankur Suhani)

* Pearl Millet / Bajra (Ankur 602)

* Pearl Millet / Bajra (Ankur909)

* Pigeonpea / Tur

* Rice (Ankur3313 )

Vegetables

* Beans

* Brinjal


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* Brinjal (Ajay)

* Brinjal (Ankur Panna)

* Brin

jal (An

kur Shreeran

g)

* Brinjal (Kuldeep)

* Brinjal (Utkarsha)

* Cabbage

* Capsicum

* Chilli Arch


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SALE STRUCTURE OF ORGANIZATION

CHAIRMAN

DIRECTOR

GENERAL MANAGER

DEPUTY GENERALMANAGER

ZONAL AREA MANAGER

AREA MANAGER

AREA SALES MANAGER

TERRITORY SALES MANAGER


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DISTRIBUTOR SYSTEM OF COMPANY

COMPANY GODOWN

DIRECT DISTRIBUTOR

SUB DISTRIBUTOR

FARMER

SALES PROMOTION:

1. FARMERS MEETING 2. ELECTRONIC MEDIA(a) RADIO(b) T.V.(c) INTERNET3. PRINT MEDIA(a) NEWS PAPER(b) MAGAZINE4. FIELD DEMOSTRATIONS


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SCHEMES REGULATED BY COMPANY:

ADVANCED BOOKING

TARGET BASED SCHEMES

1. FOREIGN TOURS2. CREDIT POLICY3. FREE GIFT4. LUCKY DRAW5. CASH DISCOUNT

BEST MEDIA FOR PUBLICITY & SALES PROMOTION

ACTIVITIES

sub-dealer and farmers Unawareness, about Ankur seeds varieties

hence, they must take care on the Useful object such as,

1. ATTENTION/AWARENESS:It is the starting point in the sales process. The Unawareness according the

retailer must be attracted, want that the product is able to satisfy the

retailers.

2. INTEREST:By organizing Demo, Programmes or workshop ,we can Create an interest inthe mind of the subdealer and farmer ,the sub-dealer and farmer made

realize how the product will benefit him and must fill curious to know

more about product, its features and merits.

3. DESIRE:


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We must ignite the desire of the product after securing the attention and

after arousing his interest in the product. From the stage of interest to buy

the product, we must use all our powers of persuasion and conviction to

create on urge to buy.

4. ACTION:It means gaming an order. The addition of the first three Stages should be

the actual purchase of the product. The dealers must be induced to buy our

product.

MEDIA OF ADVERTISEMENT:

The advertisement message has to be convey to the Sub-dealer and farmer

through some means or channel.

DIRECT ADVERTISEMENT:

Sales literature, Samples, Circulars,Catalogues, Price List, Certification of

product,Broachers,Folders,Sending greeting cards on Occasion.

INDIRECT ADVERTISEMENT:

Press: News papers, Agro magazines, Journals, Periodicals.

Outdoor: Posters, Hoarding, Painting, Travelling display

Film, T.V.: Slides, feature films, Sponsored programmes etc

Radio: Spot and sponsored programmes.

PRACTICAL ADVERTISEMENT THROUGH POINT OF VIEW:

y Taking field demonstration, workshops, taking reviews, and appraisals.y Show them video cassettes, counter saley Purchasing plot by company itself, cultivate various varieties onThese research plots and inviting the farmers to see the results.


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DEVELOPMENT ACTIVITIES:

Company take the steps in development of research department have the

more than 100 scientist working there with high technology Laboratory


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THE LIST OF SEEDS COMPANIES IN THE MARKET

1. Nuziveedu Seeds Pvt. Ltd. 2. Ankur Seeds Pvt. Ltd.3. Nath Seeds Pvt. Ltd.SS4. Rasi Seeds Pvt. Ltd.5. Krishidhan Seeds Pvt. Ltd.6. Mahyco Seeds Pvt. Ltd.7. Nirmal Seeds Pvt. Ltd.8. Ajeet Seeds Pvt. Ltd.9. Kaveri Seeds Pvt. Ltd.10. Vibha Seeds Pvt. Ltd.11. Zuari Seeds Pvt. Ltd.12. Atash Seeds Pvt. Ltd.13. Paras/Monsanto Seeds Pvt. Ltd.14. Manish Biotech Pvt. Ltd.15. Yashoda Seeds Pvt. Ltd.16. Tulsi Seeds Pvt. Ltd.17. Vikram Seeds Pvt. Ltd.18. J.K. Seeds Pvt. Ltd.19. Pravardhan Seeds Pvt. Ltd.20. Bayer Seeds Pvt. Ltd.SWOT ANALYSIS OF ORGANIZATION

STRENGTH: 80% Farmers satisfy ofankur seeds of cotton .


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WEAKNESS: Company has small boll size of seeds varieties. There is no regular visit of

sales person to farmer thats why some farmernot satisfied.

OPPORTUNITY: Company can launch new varieties of large boll size having more no.

of branches.

THREATS:In the market there are many seeds companies


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BIBLIOGRAPHY

y INTERNET-y WWW.GOOOGLE.COMy WWW.ANKUR SEED .COMy WWW.SCRIBD.COM

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