A Presentation On

I N D I A N S E E D S I N D.

“ INDIAN SEEDS INDUSTRY ”
Presented By:Rajan Patel Mo.:9099963456 MBA (AGRIBUSINESS)-III

The Indian Seed Industry in Brief
I N D I A N S E E D S I N D.

ØSEED Ø ØThe Ø

is the most important input component for productive agriculture. expansion of seed industry has occurred in parallel with growth in agricultural productivity. would depend more and more on the pace of development and adoption of innovative technologies.

ØDemand

ØThe
I N D I A N S E E D S I N D.

Indian seed industry is currently valued around Rs 4300 crores and is proposed to be around 4650 crores by 2010. are about 150 organized seed companies in India today. share of research hybrids in total turnover of crops like pearl millet, sorghum-Sudan grass, sunflower, maize, sorghum and cotton.

Ø ØThere Ø ØThe

Ø

Types of Seed
I N D I A N S E E D S I N D.

ØBreeder seed:

(directly controlled by the originating or sponsoring plant breeder of the breeding programme)
Ø ØFoundation seed:

(Foundation seed shall be the progeny of Breeder seed)
ØCertified Seed:

(Ultimate Seeds for Commercialization)
Ø

The Role of Public Sector in Indian Seed Industry
q qThe

I N D I A N S E E D S I N D.

Role of public sector seed is now mostly confined to certified seeds of high volume, low value segment of high yielding varieties of cereals, pulses, and cotton with a limited presence in the high value hybrid sectors of cotton, cereals, and vegetables. Sector involvement in the seed industry with the responsibility of promoting seed industry development from production through processing, storage and marketing, and establishing a system of quality control.

q qPublic

q

Public Sector Variety’s Supply chain
DEVELOPMENT & TESTING

Coordinated Variety Release Committee

State variety release committee. Notification by subcommittee on crop standards, release an notification.

Seed Production

Breeder

Foundation

Certified Seed

Marketing

The Role of Private sector in Indian Seed Industry

I N D I A N S E E D S I N D.

qThe

Private seed industry is now undergoing a transition following the Indian government’s focus on biotechnology research, as a means of increasing agricultural production and also driven by trends in the domestic and world seed market. Private seed sector now comprises some twenty or so large players (with sales turnover exceeding Rs. 200 million), several medium companies (sales turn over between Rs. 200 million and 20 million), and a large number of small, unorganized players (sales turnover less than Rs. 20 million) with local presence.

q qThe

Private Sector Variety’s Release supply chain
I) Testing of public variety’s release

Certification

Seed production

Marketing

II) Development and Testing of private sector developed varieties

Seed Production …..

[NO SYSTEM OF RELEASE [NO SYSTEM OF RELEASE AND NOTIFICATION THROUGH AND NOTIFICATION THROUGH PUBLIC SECTOR CHANNELS] PUBLIC SECTOR CHANNELS]

Marketing

The Competition level between Public & Private sector in Indian Seed Industry
I N D I A N S E E D S I N D.

ØAvailability

sector.

of breeder seeds by Public and private

Ø ØNew Ø ØEffectiveness Ø ØConsidering Ø

varieties are developed by SAUs, ICAR institutes, and private seed companies. in getting the research result out to farmers by Genetically Modification technology licensing/royalties/exclusive rights by public and Private sector.

Continue….
ØMainly

Sector.

focus on mainly on hybrid seeds by both

I N D I A N S E E D S I N D.

Source: Advanta India Ltd.

Current structure of Indian Seed Industry

I N D I A N S E E D S I N D.

Source: Advanta India Ltd.

Market share of Major seed player in India
I N D I A N S E E D S I N D.
Source: Advanta India Ltd.

Market share of key Indian seed industry
EDI parry , 1% Indo-American, 3% Seminis, 3% Ankur, 4% JK, 4% Pioniar , 5% Syangenta, 5% Nath, 1% Mahyco, 14% Mahyco Emergent Monsanto Proagro Namhhari Emergent , 14% Nuziveedu Ganga kaveri Advanta India Syangenta Pioniar Advanta India, 5% Ganga kaveri, 6% Nuziveedu, 8% Namhhari, 8% Monsanto, 11% JK Ankur Seminis Proagro, 8% Indo-American EDI parry Nath

Main Market Segments of Indian Seed Industry
I N D I A N S E E D S I N D.

•Food Grains seed market • •Vegetable seed market • •Oil seed market • •Cotton seed market •

SWOT analysis of Indian seed industry

I N D I A N S E E D S I N D.

Strengths
Ø ØRound the year availability of Ø ØSupport Ø ØVast network of dealer

raw materials.

from the central government and state Government. facilities all over the country.

ØVast domestic market for farmers.

Weaknesses
Ø
I N D I A N S E E D S I N D.

ØHigh requirement of Ø ØLow Ø ØRemuneration Ø ØInadequately

working capital.( Farmer)

availability of new reliable and better accuracy instruments and equipments. less attractive for talent in comparison to other Agriculture industry. developed linkages between R&D labs and Seed industry.

Opportunities
Ø
I N D I A N S E E D S I N D.

ØLarge

crop and material base in the country due to agro-ecological variability offers vast potential for seeds industry. of developments in contemporary technologies such as electronics, material science, computer. of global markets may lead to export of our developed technologies.

Ø ØIntegration

Ø ØOpening

Threats
Ø
I N D I A N S E E D S I N D.

ØCompetition from global players. Ø ØLoss of trained Ø ØRapid

labour to other industries.

developments in contemporary and requirements of the industry may lead to fast obsolescence.

Five Force analysis of Indian Seed Industry

I N D I A N S E E D S I N D.

Buyer Power: (High)
q

qThere q

are a number seller available in the Indian seed market. who needs to input seed at low price and high Quality. buyer is not satisfied with existing brand of seed so the buyer switch over to other company’s brand.

qFarmer q qIf

Supplier Power: (Moderate)
q
I N D I A N S E E D S I N D.

qPlant q qSeed q qThe

breeding, including genetic research and cultivar assessment. Production either in dependences or by Products.. companies own

industry is organised in public & Private entities with the objective of roles of research, production, Quality Control and Marketing.

q q

Threat of New Entrance: (Medium)
q
I N D I A N S E E D S I N D.

qResearch has provided new technologies q qSpecial q qDNA

relevance of genetic engineering, essential component of biotechnology. technology, today the breeders dispose of all the genes of nature and also of artificial genes created in the laboratory.

Substitute Product:
q

qThere is no Substitute available in the seed industry.
I N D I A N S E E D S I N D.

q

Rivalry among Industry: (High)
q

qThere q qIn

are approximately 223 Companies engage in production of seed in India. the seed industry major players are which is covered by Mahyco is app.14 %, Emergent cover 14%, Monsanto cover 11% of the total market share.

PEST analysis of Indian Seed Industry

I N D I A N S E E D S I N D.

Political factor
• nNational seeds policy • nAssistance

Sector.

for Boosting Seed Production in Private

• nNational Commission on Farmers. n

Social factors
nSeed Village Scheme.
I N D I A N S E E D S I N D.

n nTo

upgrade the quality of farmer-saved seed which is about 80-85% of the total seed used for crop production programme. this programme an amount of Rs.14.77 crore has been provided during 2005-06.

n nUnder

Economical Factors
nInflation n nInterest rate

Technological factor
I N D I A N S E E D S I N D.

nR&D activity n nTechnology incentive n nBreeding and Creation of new varieties n nProduction and seed technology

Ratio Analysis of Seeds Industry ( Gujarat State )
üNet Profit Ratio:
I N D I A N S E E D S I N D.
Figure in (%)

Net profit (After tax) Sales
N Profit R et atio

* 100

20 15 10 5 0 2006 11.24

18.25 12.53 2006 2007 2008 2007 Y ear 2008

Ø ØHigh sales of Cotton , Oil & Vegetable Seed Produced by new Technology & New Variety which Boost the sale of seeds with low cost & High profit margin.

Earning Per Share
üEarning Per Share:
I N D I A N S E E D S I N D.

Profit Before Dividend Shareholder’s Share Capital

Earning Per Share (EPS)
160 155 Figure in (%) 150 145 140 2006 2007 Year 2008 158 150 146

2006 2007 2008

üThis ratio fluctuated by demand and supply of the share of seed industry.

üExpense Ratio:

Expenses * 100 Sales

I N D I A N S E E D S I N D.

Expense Ratio 10.6 10.4 10.2 10 9.8 9.6 9.4 9.2 10.45 10 9.74 2006 2007 2008 2006 2007 Year 2008

Figure in (%)

In seed industry of Gujarat expense ratio was going because day by day up-down due to cost of production decrease of new farming method adopted by the farmer’s for the seed production above graph refers as from 2006 to 2008 expense ratio is decrease-increase to 1 to 3%.

üCurrent Ratio:

Current Assets Current Liabilities

I N D I A N S E E D S I N D.

C urrent R atio
1 0.8 Figure in (%) 0.6 0.4 0.2 0 2005 2006 Y ear 2007 2008 0.8 0.64 0.86 0.66 2005 2006 2007 2008

In above graph refers that current ratio of seed industry of Gujarat state was an around 80% and it was down to 64% due to decrease in assets and liabilities in the industry. And it was higher after 2006 in 2007 upto86% due to new entrance in the industry and in 2008 was 66% here 20% ratio down from assets and liabilities side.

Impact of WTO on Indian seed Industry
ØWTO

I N D I A N S E E D S I N D.

concentrate on protecting the interests of the farmer in his role as producer as well as consumer of seed almost all agricultural research and plant breeding in India is financed with the taxpayers money. ØUPOV introduces legal and economic restrictions on farmers’ livelihood practices for quality control in seed production. ØUPOV was providing an incentive for making slight changes on existing varieties and calling them “new” and worthy of protection for seeds.
Ø

ØThey

I N D I A N S E E D S I N D.

would also protect the rights of the farmer to sell seeds of a variety protected by a Breeders Right but the special Advantage conferred by the registered name would be available only to the breeder, not the farmer. right and freedom to function as the biggest, most de-centralized supplier of locally well-adapted seeds has helped India to make the transition from a grain deficient to a grain surplus nation.

Ø ØThis

Ø

The impact from genetic technology on seed industry
I N D I A N S E E D S I N D.

modification

oBio-safety and environmental safety infrastructure before commercial release of GM crops. o oInter-alia, calls for up gradation of the post-release monitoring infrastructure which is the responsibility of Department of Agriculture & Cooperation In particular. o oQuality Control of GM Seeds and Crops.

Seed supply chain in seed industry:

I N D I A N S E E D S I N D. Source: www.seednet.com

Factors affecting seed industry in region
Ø
I N D I A N S E E D S I N D.

ØImprovements

general.

in the agricultural sector in

Ø ØSeed production. Ø ØTrade Ø ØLiberalization reforms. Ø

and international agreements.

Ø

I N D I A N S E E D S I N D.

ØThe expertise in public sector. Ø Ø ØLake of clear seed strategy. Ø Ø ØDeficient marketing policies in some region. ØAvailability of trained personnel. Ø Ø

Role of Contract Farming in Indian seed Industry

I N D I A N S E E D S I N D.

qSince

organized farming practice has become the need of the hour in the world of rapid industrialization. rapid industrialization process in India has created shortage of farmland, which in turn has necessitated organized farming practice in India. farming generally involves: a pre-agreed price between the company and the farmer, along with measures of quality, quantity, acreage to be farmed, and/or duration of the contract.

q qThe

q qContract

q

Objectives of promoting contract farming

I N D I A N S E E D S I N D.

qTo

reduce the load on the central & state level procurement system. qTo increase private sector investment in agriculture. qTo bring about a market focus in terms of crop selection by Indian farmers. qTo generate a steady source of income at the individual farmer level. qTo reduce migration from rural to urban areas

Findings:
I N D I A N S E E D S I N D.

qThe

role of Seed Sector has been Substantial. The expansion of Seed industry has occurred in parallel with growth in agricultural Productivity. power is high; suppliers are moderate, where threat of new entrance is at medium level and with no substitute product rivalry is high in the Indian seed market. expertise high in private sector comparatively than public Sector.

q

qBuyer’s

q qR&D q

Continue..

I N D I A N S E E D S I N D.

qGovernment intervention is high in Seed industry. q qTechnology up gradation is rapidly growing. q qContract

farming helpful to Indian seed industry in terms of reduce the risk from buyer as well as supplier side.

Limitation of Research:

I N D I A N S E E D S I N D.

Ø

Due to this is a secondary research report to finding a proper data is taking so much time. Due to non-availability of whole Seed industry financial data we analyze only Gujarat state as represent the Seed industry. Some data is still we will add for future research and for further study.

Ø Ø

Ø Ø

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