minum Banking Cement

Commercial Vehicle Cotton & Cotton Ya

Component Business Process Management (BPM) Construction

parel Industry Chlor-Alkali CRAMS Industry

Educat

Crude Oil Gems & J

Coal

Natural Gas Pesticides Power Generation

Pa
Steel
Manganese Ore Pharmaceutical

eight Transport

Wheeler

Refining & Marketing Reta

Shipping Sugar Tractor Telecom Tower S

Tyre

Seed

Tea-Coffee Industry Telecom-W

Roads & Highway Zinc & Lead

e Energy Sources
an Made Fibre Paper Pipe Housing Finance Passenge
Hospital Industry
Hotel Shipbuilding Aluminum Renewable Energy Source
Cotton & Cotton Yarn Tracto

anking Express Service

The
Steel Two
Wheeler Pesticide

Indian

oads Freight Transport Gems & Jewellery

Express Service Cr
eed Industry Passenger Vehicle CRAMS Industry
Natural Gas
December

2012

Seed

Industry

The Indian seed industry is the fifth largest seed market in the world, accounting for
4.4% of global seed market after the U.S. (27%), China (20%), France (8%) and Brazil
(6%). In terms of global trade, India is almost self-sufficient in flower, fruits and
vegetables and field crops seeds. According to NSAI, the market size of Indian seed is
expected to grow at a healthy rate on account of favorable global grain supply demand
fundamentals, grain productivity well below world's major grain producing regions and
government's continued focus on improving seed replacement rate.

Organized sector
accounts for only
15-20% of total
certified/quality seeds
market in India

According to MOA, the organized sector accounts for 15-20% of the total seed
distributed in the country. The organized sector comprises distribution of certified &
quality seeds (i.e. includes both public and private sector companies) while the
unorganized sector mainly comprises of farm-saved seeds and counterfeit, cloned or
passed-off seeds. Counterfeit and cloned seeds are seeds manufactured and sold
illegally as legitimate seeds, whereas passed-off seeds may be manufactured or
packaged to resemble legitimate seeds.

In the organized sector space, private sector forms 49% of domestic seed industry in
terms of volume. The market size (in volume terms) of private players has grown to
49% in FY12 from 39% in FY10. The main focus of private seed companies has been on
the high value low volume seeds (such as cotton, corn, sunflower, vegetables and
horticulture) whereas public sector seed companies have dominated in the low value
high volume seeds (such as wheat, rice, pulses, and oilseeds).

Despite improved
demand and favorable
crop economics, EBITDA
margins of most domestic
seed companies remained
under strain in FY12

India is the fifth largest

seed consumer in the
world, with 4.4% global
seed market share

Private sector forms

49% of domestic seed
industry, with focus on
high value low volume
seeds

Increase in competition intensity, maturation of growing cotton seed market and

significant increase in labor cost on the back on the shortage of labor, kept EBITDA
margins under strain for most of the domestic seed companies in FY12. Going ahead,
seed industry top-line is expected to continue to witness positive demand trend in FY13,
but margin may remain under pressure. Over the long-term, companies are targeting to
increase the market share in higher margin seed products such as fruits & vegetables and
introduction of innovative products which improve the crops yield.

CARE Research expects favorable government policies will continue to support the
growth of Indian seed industry. Government has exempted domestic seed companies
from payment of income tax, excise duty and VAT, allowed 200% of deduction on R&D
expenditure under Section 35 of IT Act, provided back ended subsidy to private
companies for creation of seed infrastructure, allowed FDI up to 100% under the
automatic route in the development and production of seeds and planting material,

Favourable Government
policies, a key
growth driver

subject to certain conditions.

The

Indian

Seed

Industry

Table
of
Contents
Section- I CARE Research's Outlook
Outlook on Indian Seed Industry

Indian seed

market size FY16e

Outlook

on seed demand

Outlook

on profitability

Outlook

on key concerns

Outlook

on government policies

Section- II Industry Section

Overview of Global Agriculture

Global grain

stock-to-use ratio

Global fruits

& vegetables demand

Cotton

stock-to-use ratio

Overview of Indian Agriculture

Indian grain

production/demand/supply/inventory

Indian fruit/vegetables

Indian cotton

production

production

Agriculture

value chain

Key factors

affecting demand for agricultural inputs in India

Grain

demand

Farm

income

Favorable

weather conditions and irrigation facilities

Availability

of credit

Others

Demand-supply & Market Analysis

Demand

supply of pesticides

State-wise

consumption of pesticide

Insecticide

market in India

Fungicide

market in India

Herbicide

market in India

Import Export

trend

Competition Analysis

Domestic

market

Global market

Overview of Global Seed Industry

Introduction

Working

of seed industry

Research

& development process (R&D)

Production

Product

Long

process

life cycle (PLC)

production period

Working

capital requirement

Contract

farming

Seed

Conditioning

The

Indian

Seed

Industry

Table
of
Contents

Quality

control

Marketing

Benefit

& distribution

of quality seeds

Overview of Indian Seed Industry

Evolution

of industry

Indian seed

market size

Indian seed

industry demand

Cotton

seed the main crop

Component

of Indian seed industry

Organized

Unorganized

Component

of Organized Indian seed industry

Public

Private

Grain productivity

(India v/s. global)

Overview of Indian Cotton Seed Industry

Indian cotton

Cotton

seed market

product life cycle (India v/s. Global)

Concerns

of cotton seed industry

Competitive

matrix for seed players in cotton

Profitability Analysis

Profitability

EBITDA

of domestic seed companies

margin

Margin trend

of selective seed companies

Regulations

Regulatory

scenario & Evolution

Plant Varieties

Patent

and Farmers' Rights Act, 2001

registration

Procedures

for registration of plant varieties

Application

for registration

Seed price

control

SECTION- III Company Scan

Advanta India Limited

Company

background

Company

financial performance

Financials

Monsanto India Limited

Company

background

Company

financial performance

Financials

Kaveri Seed Company Limited

Company

background

Company

financial performance

Financials

The

Indian

Seed

Industry

Table
of
Contents
Section- IV Annexures

Global grain

demand supply statistics

demand supply statistics

Key cotton producers, consumers, importers and exporters

Indian grain demand supply statistics

Indian cotton demand supply statistics

Distribution of certified/quality seeds trend

Fertilizer demand trend

Global area of biotech crops

Institutional credit to agriculture sector

Number of seed varieties developed by ICAR/SAUs in India

Country-wise seed market size

Indian seed market size

Global cotton

List of Graphs & Tables

Section- II Industry Section
Overview of Global Agriculture

Grain stock-to-use (FY12)

Grain production growth v/s demand growth (FY12)

Fruits and vegetables supply demand growth in the past 15 years

Cotton stock-to-use ratio (FY12)

Grain price index trending upwards

Overview of Indian Agriculture

India v/s world land statistics

India's agriculture position in global market for key crops

Indian grain output (FY97-12)

Yield in major grain producing regions

Indian cotton output (FY97-12)

Yield in major cotton producing regions

State-wise cotton acreage in India (FY97-12)

MSP for key crops in India (FY08-13)

Cost of cultivation for key crops in India

Seeds demand trend positive (FY01-12)

Fertilizer demand trend (FY01-12)

Grain area under irrigation (FY93-09)

Output/monsoon co-relation (FY93-11)

Flow of institutional credit to agriculture sector (FY06-11)

Share of institutional credit providers

Fertilizer prices trend in India

Overview of Global Seed Industry

Seed generation structure

Supply chain of seed industry in India

Advantages of OPV and Hybrid seeds

Global value of the biotech crop market (FY96-11)

Global area of biotech crops (FY01-11)

Global area of biotech crops by country

The

Indian

Seed

Industry

Table
of
Contents

Breakup

of global biotech acreage by crops

crop area as % of global area harvested

Distribution of global biotech crops acreage by traits

Biotech

Overview of Indian Seed Industry

Country-wise seed market size - Country-wise

Major seed exporting countries - Country-wise

Major seed exporting countries Country-wise

Indian seed market size

Seed demand (volume) trend in India

Indian seed market size (value)

Seed demand state-wise (FY12)

Indian seed industry demand trend by major-crop wise (FY07-11)

Acreage trend of major seed consuming crops in India (FY07-11)

Seed rate of key crops in India

Indian seed demand market segmentation

Indian organized seed demand break-up

Share of private sector in seeds market (by volume)

Seed replacement rate trend for varieties seed of selective crops in India (FY09-11)

Operating revenues of major private sector seed companies in India

Overview of Indian Cotton Seed Industry

Indian cotton seed market size (FY03-11)

Indian cotton crop acreage and Bt adoption rate (FY02-11)

Bt cotton adoption trend from FY02-11 in India and major cotton producing states

Adoption of single and double gene Bt cotton hybrids in India (FY05-11)

List of commercially released varieties of Bt cotton hybrids (FY02-11)

Cotton acreage trend v/s MSP (FY08-12)

Competitive matrix of Indian cotton seed industry

Profitability Analysis

Indian seed industry cost break-up

Margin trend of selective seed companies (FY08-12)

Regulation

Evolution of Indian seed industry and major regulatory changes

Number of applications filed for patent registration (FY08-12)

Application procedures for registration of plant varieties

Examination procedures for registration of plant varieties

Historical trends in Bt Cotton pricing (FY06-12)

Section- III Company Section

Advanta India Limited

Financials (F08-12)
Monsanto India Limited

Financials (F08-12)
Kaveri Seed Company Limited

Financials (F08-12)

The

Indian

Seed

Industry

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