SEEDS Seminar

8/2/2019 SEEDS Seminar

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SEEDS-THE BASIS OF AGRICULTURALPROSPERITYSEED COMPANIES: Central Players See

A Dramatic Change In Their Roles

Kishore Rao VSKDirector,

genus a.b : a leading seed business strategy

& research consultancy

Jai Guru!

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PERSPECTIVES:

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"The outlook for the seed and crop protection industries

is strong. In seed and in crop protection, making the

right research and development choices will be

important. Many companies will need to seek external

collaborations and venture investments to fortify their

in-house R&D efforts and ensure that they have products

that will compete. Additionally, the path to market

will be an increasingly important factor for success.

Agreements between competing players and access

to the grower (perhaps even purchased access) will be

crucial in the future. In a world with multiple ways to do

the same thing control the same pest, enhance yield,

minimize plant stressthe relationship with the

farmer/customer will increase in importance."

TRAY THOMAS, Founder, Context Network, USA3

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Ive spent more than a decade working

internationally with seed and biotechnology andthere has been a huge increase in adoption ofbiotechnology over the last year driven byacceleration in South Americaspecifically Braziland Argentina Mexico now is moving their process

forward and allowing trials. China has movedforward with the approval of two biotech productsone for corn and one for rice. India is moving faster.So as you step back and look at the world, I thinkwere seeing acceleration.

Brett Begemann, executive vice president ofglobal seeds and traits, Monsanto

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WHATARETHEBUZZISSUES &

MOVEMENTSINTHESEEDWORLD ?

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1. WHATISTHE INDIANSEEDMARKET?ISIT 2000 CR. OR 5000 CR.?

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The Indian seed industry is currently

valued between INR 45 to INR 60 bnand remains fragmentedwith about 150-200 organized seedcompanies. A large number of MNCs arepresent in the sector including Bayer,DuPont PHI, Monsanto and Syngenta

It is growing every year by 12%,and that too when only a quarter, ofall farms are sown with new seedsevery year

The Indian seed industry is alreadya US$ 1.5 bn sector and the eighthlargest in the world.

Company

Rs. Cr 2009

Organised Industry 3500-4000 4500-5000

Nuziveedu 400 500

Mahyco 200 450

Raasi 350 375

Pioneer 200 350

Monsanto 300 330

Proagro 150 260

Ankur 120 250

Vibha 40 250

Syngenta 70 250Krushidhan 85 190

Shriram Bioseed 75 160

Tulasi 23 150

Ganga Kaveri 120 130

Kaveri NA 125

Ajeet 40 100

Vikram seeds NA 100

J.K Seeds 60 95

Advanta 50 90

Dhanya 40 80

Nath 50 NA

Kanchan 60 NA

Prabhat 25 25

Nandi 23 15

Org sector Veg 600-700 900-1000

2007

Approx Turnover*


7/24

THESTRUCTURE: ANEXAMPLEOF HY. RICE

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2-3% of Rice Acreageof 44 m.ha


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Most Indian companies have been focusing on

cotton

However, two multi-national companies havefocused on this crop as a priority and investedheavily in R&D, systematic market developmentand focused production improvement strategies

Pro-Agro - (Hybrid Rice International) with itsblockbuster product Arize 6444 has been ableto take market leadership

Pioneers PHB 71 is a market leader

For other companies, this segment is one of theopportunities and not a thrust area


9/24

2. MERGERSANDTAKEOVERSDOMINATESEEDSBUSINESSINTHELASTDECADE

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10/24

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India too was atheater of action!


11/24

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3. ISITTHEENDOFFARMSAVEDSEEDS?

There is an increasing hue and cry about farmersloosing rights over choice of growing their ownseeds globally.

In India this is still a long way off, hybrid rice is still

2-3% of the rice acreage, another 5-6 % are boughtseeds.

In cotton, however almost 90% + are bought seeds

In corn, it is around 40-50%

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4. ISBIOTECHABOON 0RBANE?

Mixed opinions

India's population is growing faster than its ability toproduce rice and wheat. Given land constraints andthe large projected demand for food, the decline inagricultural productivity is a matter of seriousconcern. Today this makes Biotech to increaseproductivity a necessity. Biotech is seen as animportant way of meeting Indias food needs.

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INDIAN BT COTTONAGLOBALSUCCESSMODEL

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: BT cotton is planted in 8.4 mil ha. this now occupies87% of total cotton, up from 80% in 2008.

For the eighth consecutive year, the hectarage, adoptionrate and the number of farmers using Bt cotton in India

in 2009, all continued to soar. The increase from 50,000 hectares in 2002, (when Bt

cotton was first commercialized) to 8.4 million hectaresin 2009 represents an unprecedented 168-fold increasein eight years.

In 2009, for the first time, multiple gene Bt cottonoccupied more hectares (57%) than single gene Btcotton (43%).

Source ISAAA


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5. AGRICULTURESPOSITIONIN INDIA

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Key Indicators at Constant Prices (2004-05) in %

Item 2007-08 2008-09

Growth in GDP in Agriculture &

Allied Sectors

4.7 1.60

Agriculture 5.0 1.10

Share in GDP - Agriculture and

Allied Sectors

16.4 15.70

Agriculture 13.9 13.20

Share of Agricultural Imports in

Total Imports at Current Prices

2.95 2.74

Share of Agricultural Exports in

Total Exports at Current Prices

12.05 10.23

Employment in agriculture

Sector as Share of Total

Employment

52.1

NORMAL AREA1 MAJOR CROPS

000 HA 000 HARice 42,568 Jute 837Wheat 26,508 Groundnut 6,462Bajra 9,988 Rapeseed 6,237Jowar 9,195 Sesame 2,039

Maize 7,481 Coconut 1,926Ragi 1,705 Castor- 775

Barley 647 Linseed 458Gram 6,874 Tobacco 402

Other Pulses 13,649 Tea 516Pigeon pea 3,505 Coffee 317Cotton2 7,987 Sugarcane 4,222

India's diverse economy encompasses both traditional village farming and modern agriculture and provides livelihood for approximately 600 million Indians


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6. OTHERBUZZINSEEDSWORLD

Bt Brinjal suspended

Biotech services dominate R&D- molecular markers,marker assisted breeding, Bio-informatic services,Custom genotyping, DNA fingerprinting, DNA isolation,.DNA markers,DNA marker discovery, DNA sequencing,Genetic maps, Genomics services, Germplasmcharacterization, Marker-assisted backcrossing, Marker-assisted breeding, Marker-assisted selection etc

NUE & Drought tolerance set to change how agricultureand food security issues will be viewed.

Technology to dominate agriculture in future

Piracy and Intellectual property protection dominateconsciousness of the seed worlds thinking

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WHATISOUTANDWHATIS INTHESEEDGAME?

APHILOSOPHICALLOOK

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BUSINESSISIN

Agriculture

Contentment

Trust

Business

Ambition

Commercialdistrust

The farmer is looking at Agricultue as business. Agriculture is no longeran end, its a means to the end called business

WHEREISTHE SELFCONFIDENCE?Self confidence here means ability to covert an idea into realityThe problem arising due to lack of self confidence is inability to bring outcutting edge products despite entrepreneurial drive and professionalismSelf confidence is lacking in Indian R&D 19

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ao,ABMPSeminar.KeyNote

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INDIANSEEDCOMPANIESIN, INNOCENCE, TRADITION OUT

Indian Seed Companies:

Mahyco, Advanta, Nuziveedu, Vibha, Shriram & Others

All respected globally and come on to their own.

Seeds industry in no more a multinational

dominated business

-Advanta is Indias seed multinational.

Innocence is dead

What was innocence? Old: I dont know, Id like to know

Now: Let me see if youre telling me the right thing or fooling me

Old: Ill go with what youre saying Now: Give me two good reasons why I should believe you

Tradition is dead The so-called village head is no longer the unquestioned authority. Theres no blind following of legacies The power has shifted more in favour of the rich and the successful. Thats where the

wisdom is looked for

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PUBLICSECTORISHISTORY?

The public sector driven picture of agricultural research has,however, been changing.

Universities no longer occupy the commanding heights

Except in crops where private sector has no interest, publicsector is no where!

LOCALIZATIONISOUT Local context no longer holds. Mass media is fast breaking

down walls between markets

While localisation is out, globalisation is in

We enter truly globalizing and "boundary less" economy In today's environment, organizations are embedded both

locally and globally. Marketers need to account for thesedifferent levels in order to understand the market.

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WHATCANWELEARNFROMOTHERINDUSTRIES?

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LEARNFROMCONSUMERPRODUCTS

What to Learn? Keeping Consumer Interest AliveConsumer products like soaps are constantly upgrading,modifying, repacking, reinterpreting the productviacountless product extensionsconserving lot of value.

Which is the longest running seed industry product?

What to Learn? Reinventing product

Consumer electronics products like cellphones areadding new features, new technology and conveniencesto the product. The rate of innovation is so fast that aproduct becomes obsolete in 3 months.

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LEARNFROMCONSUMERELECTRONICS


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LEARNFROMPHARMAINDUSTRY

What to Learn? Discovery

Pharma industry pros are regularly discovering newproducts and they take pride in introducing newdrug formulations. And they are small players aswell as giants. This enables small niches for all.

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LEARNFROMAMWAY

What to Learn? Direct Marketing.

Amway is an amazing company that has reinventeda marketing model by going direct to the customerand creating huge wealth. Could we learn fromthem?

SEEDS Seminar

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