Promoter's BackgroundInvestment Rationale
The company was promoted by Dhirenrda Kumar a technocrat in 1993. Prior to this he has served as General Manager at ITCand as a marketing manager at Pioneer Seed Co. In addition to this, he also held positions in Ranbaxy and Coromondal Indag.Mr. Kumar holds an M.Sc in plant genetics and breeding and an MBA in Marketing from Punjab Agricultural University and anMBA in Export Management from IIFT, New Delhi.
•Intellectual property involved with R&D provides High Entry Barrier
Rigorous research done by the company in the field of agronomy and bio technology over the period of last 15 years hasenabled the company to produce 22 different variants of Bio Pesticides, 7 Bio Fertilizers and 17 Hybrid Seeds. The intellectualcapital and time require for development of these products creates high entry barrier for new entrant to replicate thebusiness model
•Enjoy the benefit of being the first mover
Camson enjoys first mover advantage in certain product categories such as ice-box watermelon, hybrid musk melon andhybrid sweet corn using latest molecular biology tools. There is a substantial demand for these products in the market whereall these products are presently being imported into the country at a premium price. These products are already findingpopularity among the farmers and are expected to have better market going forward
•Intense research by the company over the last 15 years is about to yield fruit
A typical biocide research takes 9 to 12 years to yield results. Similarly it takes 5-6 years to launch a new hybrid. Camsonalready has a proven track record of hybrid vegetable seeds with a complete range of over 49 varieties. In-house library of selected and characterized microbes (3700) which have been found to be very effective in controlling various pests andpathogens through their secondary metabolites have enabled the company to develop various products for pest control andcrop protection. Camson's Biofertilizers are well known for their effective mobilization of nutrients to plant.
•Huge export market for zero-residue farm products
With the world increasingly becoming sensitive to chemical-free food and exports increasingly needing to be zero-residue,demand for bio-fertilizers & bio-pesticides is zooming yearly. The world over, countries are moving towards banning agro-chemicals due to the increasing realisation of the longer term costs on the health of their populations. As consciousnessregarding non residue farm products spread the company would experience substantial enhancement of demand for itsproducts going forward
The company's fruits and vegetable business is slated to rise many fold as the R&D effort of the company enables it toincrease yield per hectare substantially which in turn enables the company to sell its products at lower than the equivalentprices for the chemical-based products, and with the "chemical-free, zero-residue" advantages. This makes it a win-winsituation for the farmer / contract farmers involved. Company also has all the necessary certifications for its products.
•Strong Top line, bottom line and cash flow visibility
In FY10' the company showcased a growth of 62.6% in topline and 85% in its bottomline. Looking at the business
CAMSON BIO TECHNOLOGIES LTD.
20th July, 2010