Monsanto Company - Doing Business in India

About The Company
Monsanto is a sustainable agriculture company which provides
agricultural products that supports farmers all over the world. John F. Queeny founds the original Monsanto. The first product of that company was saccharine. Monsanto India Limited (MIL) - a subsidiary of the Monsanto Company, USA MIL started Indian operation in 1949 Mil focus is on Maize Cultivation and Agricultural productivity Two famous products of MIL are: 1. DEKALB (Maize Seed) 2. Roundup (Herbicide)
MONSANTO IN INDIA
MONSANTO INDIA LTD.(MIL)
MIL is a publicly listed company. It manufacture and markets Roundup herbicide and DeKalb corn hybrid seeds.
MAHYCO MONASTO BIOTECH INDIA LTD.(MMB)

It is a joint venture between Maharashtra Hybrid seeds company ltd.(Mahyco) and Monasto. It marketed the Bollgard Bt cotton trait technologies to Indian seed companies.
MONSANTO HOLDINGS PVT. LTD.(MHPL)
It manufactured and marketed Paras bollgard Bt cotton hybrid seeds and seminis vegetable hybrid seeds.
PRODUCTS
CORN SOYABEAN COTTON
WHEAT
CANOLA
SUGARCANE
SUSTAINABLE AGRICULTURE
Monsanto is one of the worlds leading companies focused on sustainable agriculture.
Producing more
Developing improved seeds that help farmers double yields from 2000 levels for corn, soybeans, cotton and springplanted canola Pledging a $10 million grant to improve wheat and rice yields
Conserving more
Developing seeds that use one-third fewer key resources per unit of output Working to lessen habitat loss Improve water quality
Improving lives
Helping improve the lives of farmer and the people who depend on them , including an additional 5 million people in resource poor farm families by 2020.
3 SOURCES OF INCOME
Sale of branded seeds incorporating specific traits or Biotechnology
Licensing of Biotech traits to other seed companies
Sale of herbicides
ADVANTAGES OF BIO-TECH SEEDS
Maximizing productivity
Reduce the need for spraying pesticides
Use few natural resources & inputs EgLand, water
Increases income for farmers
Fulfill demand
Agriculture And Seeds Industry In India

Agriculture Is major occupation in India
Period between 1950 to 1980 saw huge change in
agriculture practises In 1988 new seed policy was introduced for encouraging investment in seed sector
MONSANTO CORPORATE STRATEGY

Earlier Monsanto was mainly focussed on agricultural

and chemicals product But commercialization of products in 1980s saw shift in the focus of the company to biotechnology products In 1996, company got a breakthrough in marketing biotech seeds Monsanto emphasized more Sustainable Agriculture in the coming years Concentrating more on crops and then on the seeds
MILESTONES
In 1988, the introduction of the New Seed Development
Policy by the Federal Government encouraged investments by business enterprises.

Another transformation by Federal Government was approving
cotton seeds with insect-protection biotechnologies in 2002.
CHALLENGES TO INDUSTRY
In April 2006, a price ceiling was imposed on biotech cotton
seeds by local state Government.

Ceiling challenged seed companies ability to cover the cost of
producing seeds & to earn a return on their annual investment.

The second biotech crop, brinjal developed by Mahyco
(Monsantos joint venture in cotton) had secured regulatory approval in october 2009 but the Federal Ministry overruled the regulatory approval.
FUTURE IN BIOTECH
Monsanto was heavily focussed on new technology
and improving economies of scale for development of crops Monsanto strength were in breeding and genetic engineering
COTTON AGRICULTURE
To improve productivity Monsanto's scientist had isolated

a protein from a naturally occurring soil bacterium Bt and inserted it into the cotton seed genome. Pesticides sprays were reduced 10 times per season to once or twice. Bollgard 2, a superior double gene technology provided protection from bollworms and caterpillars (environmentally friendly option). By 2009 India had the largest area of cotton in the world at about 8.9 million hectares. Biotech cotton seed added genetic trait provided 24/7 protection to crop cultivation.
RECENT EVENTS IN INDIA

Price controls on cotton Cotton was the only biotech crop where the provisional government had set a price ceiling. Objective was to ensure the supply to consumers and prevent farmers from being exploited by traders with list of essential commodities subjected to regular official review. In sugar industry, government controlled the price at both the raw material stage (sugarcane) and finished product stage (refined sugar).
Anti- Biotic Activists There were environmental impacts as well as social and community implications Some activists perceived biotech as an unwarranted interference in the process of natural selection and moreover cultivating biotech cotton is more expensive than organic cotton because of higher cost of seeds , technology fees and farmers have to buy biotech seeds from the seed company in each season. They claim that in cultivating organic agriculture, seeds are saved and cultivated the following season.
FINDINGS
Assessment suggested that Bollgard 1 seed failed to meet
standards (farmers did not plant the recommended non biotech seeds in close proximity to biotech seeds and could not prove resistance definitely). Bollgard 2 seed had reinforced the plants defenses and no resistance was reported in any of Indias cotton growing districts. Chairman of Monsanto India responded that if bollworm develop resistance it does not mean that bollgard has failed, it means we should come out with better and more advanced technology.
MONSANTOS STEPS AHEAD

To deal with regulatory uncertainty Monsanto have 4

options to deal 1. Wait and watch. 2. Size the investment with changing realities. 3. Harvesting 4. Straight forward

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About The Company

Monsanto is a sustainable agriculture company which provides

MAHYCO MONASTO BIOTECH INDIA LTD.(MMB)

MONSANTO HOLDINGS PVT. LTD.(MHPL)

Licensing of Biotech traits to other seed companies

ADVANTAGES OF BIO-TECH SEEDS

Reduce the need for spraying pesticides

Use few natural resources & inputs EgLand, water

Increases income for farmers

Agriculture And Seeds Industry In India

MONSANTO CORPORATE STRATEGY

Policy by the Federal Government encouraged investments by business enterprises.

cotton seeds with insect-protection biotechnologies in 2002.

seeds by local state Government.

producing seeds & to earn a return on their annual investment.

RECENT EVENTS IN INDIA

MONSANTOS STEPS AHEAD

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