ziNUZIVEEDU SEEDS LIMITED

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TABLE OF CONTENTS
1. 2. Executive Summary Business Overview Introduction Expertise Products Awards 2.1. 2.2. 2.3. 2.4. 3. Corporate Timeline Major Investments in Company Evolution Organizational Structure Business Model

Product Portfolio 3.1. 3.2. 3.3. Hybrid Cotton Seeds Field Crop Seeds Vegetable Seeds

4.

Nuziveedu Seeds Limited Financial and Valuation Analysis 4.1. Valuation Analysis and Financial Summary

5.

Nuziveedu Seeds Limited Analyst Recommendations Expected Change in Capital Structure Planning for Collaborations with State Governments Robust Varieties of Hybrid Paddy and Hybrid Maize of the Company

6.

Nuziveedu Seeds Limited SWOT Analysis Strengths Weaknesses Opportunities Threats 2

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7.

Nuziveedu Seeds Limited Key Professionals 7.1. Management Profile on the Basis of Key Board Members

8.

Macro Analysis of Seed Industry 8.1. 8.2. Indian Hybrid Seed Industry Market Size, FY2008-FY2012 Indian Hybrid Seed Industry Segmentations, FY2012

By Type of Crops 8.3. Market Share of Major Players in the Indian Hybrid Seed Industry, FY2012 By Hybrid Cotton By Hybrid Field Crop Seed By Hybrid Vegetable Crop Seeds

8.3.1. 8.3.2. 8.3.3. 9.

Nuziveedu Seeds Limited Competitive Analysis 9.1. By Products Offered/ Revenue/ Business Strategy Nuziveedu Seeds Limited Management Outlook and Future Projections Future Projections

10.

10.1. 11.

Appendix Market Definitions Abbreviations Research Methodology Data Collection Methods Approach Non-Linear Factor Based Regression Model

11.1. 11.2. 11.3.

11.4.

Disclaimer

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LIST OF FIGURES
Figure 1: Nuziveedu Seeds Limited Corporate Timeline 1973-2013 Figure 2: Nuziveedu Seeds Limited Organizational Structure Figure 3: Nuziveedu Seeds Limited Business Model Figure 4: Nuziveedu Seeds Limited Product Portfolio Figure 5: Nuziveedu Seeds Limited Financial Performance on the Basis of Revenues, EBITDA and PAT in INR Crore, FY2008-FY2012 Figure 6: India Hybrid Seed Industry Market Size and Contribution in the Overall Indian Seed Market on the Basis of Revenue in INR Crore and Percentage, FY2008-FY2012 Figure 7: India Hybrid Seed Industry Segmentation on the Basis of Contribution in the Overall Hybrid Seed Industry in Percentage, FY2012 Figure 8 : Market Share of Major Players in Indian Hybrid Seed Market on the Basis of Contribution by Revenue in Percentage, FY2012 Figure 9: Market Share of Major Players in Indian Hybrid Cotton Seed Market on the Basis of Contribution in the Overall Revenue in Percentage, FY2012 Figure 10: Market Share of Major Players in Indian Hybrid Corn Seed Market on the Basis of Contribution in the Overall Revenue in Percentage, FY2012 Figure 11: Market Share of Major Players in Indian Pearl Millet Seed Market on the Basis of Contribution in the Overall Revenue in Percentage, FY2012 Figure 12: Market Share of Major Players in Indian Paddy Seed Market on the Basis of Contribution in the Overall Revenue in Percentage, FY2012 Figure 13: Nuziveedu Seeds Limited Financial Performance on the Basis of Revenues, EBITDA Margin and PAT Margin in INR Crore, FY2008-FY2012 Figure 14: Scatter Chart of Indian Hybrid Seed Industry Market Size with the Companys Revenue, FY2008-FY2012

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LIST OF TABLES
Table 1: Nuziveedu Seeds Limited Financial Summary on the Basis of Revenue, Growth of revenue and EBITDA Margin in INR Crore and Percentage, FY2008-FY2012 Table 2: Nuziveedu Seeds Limited Major Investments in Company Evaluation on the Basis Deal Type, Stake, Deal Value and Implied Enterprise Value in INR Crore Table 3: Nuziveedu Seeds Limited subsidiary companies and their profile description Table 4: Nuziveedu Seeds Limited Revenue Segmentation by Types of Crops Seeds in Percentage, FY2010-FY2012 Table 5: Nuziveedu Seeds Limited Products Offered in Hybrid Cotton Seeds on the Basis of Breeding Features Table 6: Nuziveedu Seeds Limited Products Offered on the Basis of Different Field Crop Seeds, Breeding Features and Price Table 7: Nuziveedu Seeds Limited Products Offered on the Basis of Different Vegetable Seed Crops and Price Range Table 8: Nuziveedu Seeds Limited Products Offered on the Basis of Different Vegetable Seed Crops and Breeding Features Table 9: Company Comparables on the Basis of Revenue in INR Crore, FY2008-LTM year ending 31st December 2012 Table 10: Company Comparable Analysis on the Basis of Market Capitalization, Net Debt and Enterprise Value and Valuation Multiples in INR Crore and Multiples, LTM 31st December 2012 Table 11: Relative Valuation Analysis on the Basis of Deal Value, Deal Stake and Multiples in INR Crore, Percentage and Multiples Table 12: Nuziveedu Seeds Limited Operational Overview on the Basis of Board of Directors Profile Table 13: Competitive Landscape of Major Players (Nuziveedu Seeds, JK Agri Genetics, Advanta, Monsanto, Kaveri Seeds, Nath Seeds) on the Basis of Services Offered, Revenue and Business Strategies, Production Plants Table 14: Regression Coefficients of the Nuziveedu Seeds Limited Table 15: Regression Intercepts of the Nuziveedu Seeds Limited

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EXECUTIVE SUMMARY
Date: 22nd April 2013
Nuziveedu Seeds Limited is operating under conglomerate of NSL Group. As a whole, NSL Group comprises of various businesses covering cotton, power, seeds, infrastructure, sugar and textiles. It is a privately owned agronomic company in Indian seed market and is headquartered in Hyderabad, Andhra Pradesh. The company is one of the premieres in the production of hybrid cotton seed products in the Indian hybrid seed market. The company has a prime focus in research and development, production, processes, marketing and distribution of various hybrid seeds such as cotton seeds, other field crop seeds such as maize, paddy, sorghum, pearl millet, sunflower and number of vegetable crop seeds.

Key Differentiators

Nuziveedu is amongst the 30 companies of India holding licenses of Bt. cotton technology unlike Mahyco who tied- up with Monsanto India Limited for the same purpose . Leading position in the Indian hybrid cotton market

Competition and Positioning

Key Developments

Had launched two growth drivers of cotton hybrid seed products such as Bunny in 1997 and Mallika in 2005 all over the country

Financial Summary

Table 1: Nuziveedu Seeds Limited Financial Summary on the Basis of Revenue, Growth of revenue and EBITDA Margin in INR Crore and Percentage, FY2008-FY2012
Particulars Revenue Growth% EBITDA Margin% FY2008 FY2009 FY2010 FY2011 FY2012

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CORPORATE TIMELINE

In 1973, Sri M Venkatramaiah established Nuziveedu Seeds Limited and named it after his ancestral village Nuziveedu in Andhra Pradesh to overcome the domination of government sector companies in the seed industry. In 1985, the company came up with its first product specific advertisement for promoting its product such as NCS-1. In 2000 the company entered into hybrid seed other cotton by releasing hybrid sorghum. In 2001, with a huge sale of Bunny and Mallika the company crossed the turnover of INR 100 crore. In 2004, company introduced a new segment of vegetable seeds to amplify its product portfolio. In 2005, company entered the hybrid cotton seed market by launching Bt. Mallika which was a newer version of cotton as it combined the bio technology to develop hybrids with desirable qualities.

MAJOR INVESTMENTS IN COMPANY EVOLUTION

In 2011, the company acquired a strong player of cotton hybrid seeds named as Prabhat Agri Biotech Limited so as to absorb its competitor In August 2010, by the means of convertible instruments Blackstone GPV Capital Partners Mauritius V-C Limited invested INR ~ crore in the company In January 2009, the company acquired Yaaganti Seeds Private Limited and Pravardhan Seeds Private Limited which are primarily focusing on maize, sunflower and bajra seeds among others In December 2008, Blackstone invested INR ~ crore in the company so as to increase companys expansion horizons through mergers and acquisitions.

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Table 2: Nuziveedu Seeds Limited Major Investments in Company Evaluation on the Basis Deal Type, Stake, Deal Value and Implied Enterprise Value in INR Crore
Announced Date Target Deal Type Acquirer Stake % Deal Value (INR Crore) Implied EV (INR Crore) LTM Target Revenue (INR Crore)

Prabhat Agri Biotech Limited Nuziveedu Seeds Limited

Domestic Acquisition Inbound Acquisition

Nuziveedu Seeds Limited Blackstone GPV Capital Partners Mauritius V-C Limited Nuziveedu Seeds Limited

Yaaganti Seeds Private Limited and Pravardhan Seeds Private Limited Nuziveedu Seeds Limited

Domestic Acquisition

Inbound Acquisition

Blackstone GPV Capital Partners Mauritius V-C Limited

Note: LTM stands for last twelve month from the date of acquisition

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ORGANIZATIONAL STRUCTURE

The company has several seeds processing plants and production facilities plants situated all over the country covering ~ square feet of land. Currently the total processing capacity of the company is ~ TPH, out of which the highest capacity of processing plant with ~ TPH is located at Kothur, Andhra Pradesh Figure: Nuziveedu Seeds Limited Organizational Structure

PRODUCT PORTFOLIO

The company has a product portfolio of approximately ~ hybrid seed products in various crop species offering wide range of hybrid cotton, field crops, oilseeds and vegetable crops seeds Having cotton hybrid seeds as its mainstay, the company is also focusing on corn, rice and vegetable seed products for providing more qualitative products to farmers 9

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The company has multi-location trial centers set across the country in different agro- climatic zones to check the product's adaptability with reference to biotic and abiotic stress tolerances and other desirable characters The companys quality check process includes two major assessment tests which are seed testing laboratory and grow out test. Grow out test (GOT) is carried out with well-qualified production staffs for verifying the genetic purity of the product

Table: Nuziveedu Seeds Limited Revenue Segmentation by Types of Crops Seeds in Percentage, FY2010-FY2012
Business Segment Hybrid Cotton Field crops other than cotton Vegetable crops seeds Total FY2010 FY2011 FY2012

NUZIVEEDU SEEDS LIMITED FINANCIAL AND VALUATION ANALYSIS

VALUATION ANALYSIS AND FINANCIAL SUMMERY

The revenue of the company has shown a CAGR growth of ~ and EBITDA of the company has shown a CAGR growth of ~ from FY2008-FY2012 In FY2012 the growth in revenue was marked with 46.7% y-o-y with revenue of INR 1,070.0 crore largely because the company has amplified its plant capacity approximately double as against its previous production in hybrid corn seeds. Moreover.. Average annual growth in EBITDA of the company from FY2010 to FY2012 has grown at a rate of ~ with a ~ growth in EBITDA in FY2012 which represents the improvement in companys operational efficiency

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On the basis of precedent transactions, Nuziveedu Seeds has been valued at INR 2161.3 crore with a revenue multiple of 2.0x. For the calculation of revenue multiple we have considered the deals that have happened since 2007-2013 in the Indian seed and agriculture industry.

Figure: Nuziveedu Seeds Limited Financial Performance on the Basis of Revenues, EBITDA and PAT in INR Crore, FY2008-FY2012
1,200.0 1,000.0 800.0 INR Crore 600.0 400.0 200.0 0.0 2008 2009 Revenue 2010 EBITDA 2011 PAT 2012

Table: Company Comparables on the Basis of Revenue in INR Crore, FY2008-LTM year ending 31st December 2012
Revenue (in INR Crore) JK Agri Genetics Ltd.* Advanta India Limited** Monsanto India Ltd. Kaveri Seeds Company Limited Nath Seeds India Limited FY2008 FY2009 FY2010 FY2011 FY2012 LTM

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Table: Company Comparable Analysis on the Basis of Market Capitalization, Net Debt and Enterprise Value and Valuation Multiples in INR Crore and Multiples, LTM 31st December 2012
(INR crore, unless Stated) Last Twelve Months (LTM) Year Ending December 2012 Net Debt Enterprise Value (EV) EV/Revenue EV/EBITDA P/E

Company

Market Cap

Kaveri Seeds Company Limited JK Agri Genetics Ltd Advanta India Nath Seeds Limited Monsanto India Ltd Mean Median

Table: Relative Valuation Analysis on the Basis of Deal Value, Deal Stake and Multiples in INR Crore, Percentage and Multiples
Date Target Company Deal Type Deal Value INR (Cr) Stake % Implied EV/ Revenue Implied EV/ EBITDA Implied EV/ PAT

14-Mar-13

Bisco Bio Sciences Private Limited R J Biotech Limited Century Seeds Private Limited Advanta India Limited Bisco Bio Sciences Private Limited NaanDanJain Irrigation Limited

Inbound Acquisition IPO Inbound Acquisition Inbound Acquisition Inbound Acquisition Domestic Acquisition

21-Feb-13 24-Nov-12

26-Jul-12

21-May-12

14-May-12

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24-Apr-12

Zero Waste Agro Organics Private Limited

Domestic Acquisition

Mean Median

MACRO ANALYSIS OF SEED INDUSTRY

MARKET SHARE OF MAJOR PLAYERS IN THE INDIAN HYBRID SEED INDUSTRY, FY2012

The Indian hybrid seed industry is dominated by Nuziveedu Seeds Private Limited. The company has a market share of ~ % in the overall Indian hybrid seed industry followed by Mahyco and Monsanto India limited which have a share of ~% and ~% respectively For Monsanto India, corn hybrid seed was the single biggest focus in seed business. Through its Project Golden Rays project the company has signed a public-private partnership with Rajasthan state government for increasing the maize hybrid yields by two folds

Market Share of Major Players in Indian Hybrid Seed Market on the Basis of Contribution by Revenue in Percentage, FY2012
Nuziveedu Seeds Private limited Maharashtra Hybrid Corporation (Mahyco) Monsanto India Limited (MIL) Rasi Seeds Private Limited Bayer Crop Science limited - India Pioneer Seeds Syngenta India Ltd. Others

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NUZIVEEDU SEEDS LIMITED COMPETITIVE ANALYSIS

BY PRODUCTS OFFERED/ REVENUE/ BUSINESS STRATEGY

Table: Competitive Landscape of Major Players (Nuziveedu Seeds, JK Agri Genetics, Advanta, Monsanto, Kaveri Seeds, Nath Seeds) on the Basis of Services Offered, Revenue and Business Strategies, Production Plants
Companies Services Offered Key Financials Business Strategies Number of Production Plants and their Location Incorporation Date

JK Agri Genetics

Kaveri Seeds

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Nath Seeds

NUZIVEEDU SEEDS LIMITED MANAGEMENT OUTLOOK AND FUTURE PROJECTIONS

The company is planning to increase its geographical reach by entering into the different hybrid seed market of the nations such as northern and eastern region of the country. The company already has a competitive positioning in the hybrid seed market in the southern region of the nation

FUTURE PROJECTIONS

The company has intensive research and development units which are engaged in research and development of approximately 75 hybrid seeds verities in 160 locations in different parts of the globe. With the acquisition of Prabhat Agri Biotech Limited the company takes the advantage of research The company is planning to expand its operation in different continents of the globe so as to increase its brand name across the global in the hybrid seed industry. The company is planning to acquire new production sites in different continents such as SAARC, Sub African countries, Europe and Middle East Nuziveedu has a prime focus on the production of hybrid seeds products. The company has a future plan to shift its production from the varietal seeds to the production of hybrid seeds products The company is expected to showcase a revenue growth at a CAGR of ~% from FY2012FY2017. Nuziveedu is enhancing the production of its hybrid paddy seed such as (HP) Winner NPH 567 EBITDA of the company is expected to grow at a CAGR of ~ % from FY2012-FY2017 due to increase in the revenue of the company

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Nuziveedu Seeds Limited Financial Performance on the basis of Revenues, EBITDA Margin and PAT Margin in INR Crore, FY2008-FY2012
3,000.0 2,500.0 In INR Crore 2,000.0 1,500.0 1,000.0 500.0 0.0 FY'2013 Revenue FY'2014 FY'2015 EBITDA Margin FY'2016 FY'2017 PAT Margin 30.0% 25.0% In Percentage 20.0% 15.0% 10.0% 5.0% 0.0%

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DISCLAIMER

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