Jai Guru!

SEEDSTHE BASIS OF AGRICULTURAL PROSPERITY

SEED COMPANIES: Central Players See A Dramatic Change In Their Roles Kishore Rao VSK
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Director, genus a.b : a leading seed business strategy & research consultancy

- Kishore Rao, ABMP Seminar. Key Note Address

PERSPECTIVES:
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"The outlook for the seed and crop protection industries is strong. In seed and in crop protection, making the right research and development choices will be important. Many companies will need to seek external collaborations and venture investments to fortify their in-house R&D efforts and ensure that they have products that will compete. Additionally, the path to market will be an increasingly important factor for success. Agreements between competing players and access to the grower (perhaps even purchased access) will be crucial in the future. In a world with multiple ways to do the same thing control the same pest, enhance yield, minimize plant stress the relationship with the farmer/customer will increase in importance." TRAY THOMAS, Founder, Context Network, USA

- Kishore Rao, ABMP Seminar. Key Note Address

Ive spent more than a decade working internationally with seed and biotechnology and there has been a huge increase in adoption of biotechnology over the last year driven by acceleration in South Americaspecifically Brazil and Argentina Mexico now is moving their process forward and allowing trials. China has moved forward with the approval of two biotech products one for corn and one for rice. India is moving faster. So as you step back and look at the world, I think were seeing acceleration. Brett Begemann, executive vice president of global seeds and traits, Monsanto
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- Kishore Rao, ABMP Seminar. Key Note Address

- Kishore Rao, ABMP Seminar. Key Note Address

WHAT ARE THE BUZZ ISSUES &

MOVEMENTS IN THE SEED WORLD
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1. WHAT IS THE INDIAN SEED MARKET?

IS IT 2000 CR. OR 5000 CR.?
Company
Rs. Cr

Approx Turnover*
2007 3500-4000 400 200 350 200 300 150 120 40 70 85 75 23 120 NA 40 NA 60 50 40 50 60 25 23 600-700 2009 4500-5000 500 450 375 350 330 260 250 250 250 190 160 150 130 125 100 100 95 90 80 NA NA 25 15 900-1000

The Indian seed industry is currently valued between INR 45 to INR 60 bn and remains fragmented with about 150-200 organized seed companies. A large number of MNCs are present in the sector including Bayer, DuPont PHI, Monsanto and Syngenta It is growing every year by 12%, and that too when only a quarter, of all farms are sown with new seeds every year

Organised Industry
Nuziveedu Mahyco Raasi Pioneer Monsanto Proagro

- Kishore Rao, ABMP Seminar. Key Note Address

Ankur
Vibha Syngenta

Krushidhan
Shriram Bioseed Tulasi

Ganga Kaveri
Kaveri

Ajeet
Vikram seeds

J.K Seeds

The Indian seed industry is already a US$ 1.5 bn sector and the eighth largest in the world.

Advanta

Dhanya
Nath Kanchan Prabhat Nandi

Org sector Veg

THE STRUCTURE: AN EXAMPLE OF HY. RICE

- Kishore Rao, ABMP Seminar. Key Note Address

2-3% of Rice Acreage of 44 m.ha

Most Indian companies have been focusing on cotton

- Kishore Rao, ABMP Seminar. Key Note Address

However, two multi-national companies have focused on this crop as a priority and invested heavily in R&D, systematic market development and focused production improvement strategies

Pro-Agro - (Hybrid Rice International) with its blockbuster product Arize 6444 has been able to take market leadership Pioneers PHB 71 is a market leader

For other companies, this segment is one of the opportunities and not a thrust area

2. MERGERS AND TAKEOVERS DOMINATE SEEDS BUSINESS IN THE

LAST DECADE

- Kishore Rao, ABMP Seminar. Key Note Address

India too was a theater of action!

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- Kishore Rao, ABMP Seminar. Key Note Address

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- Kishore Rao, ABMP Seminar. Key Note Address

3. IS IT THE END OF FARM SAVED SEEDS?

There is an increasing hue and cry about farmers loosing rights over choice of growing their own seeds globally. In India this is still a long way off, hybrid rice is still 2-3% of the rice acreage, another 5-6 % are bought seeds. In cotton, however almost 90% + are bought seeds In corn, it is around 40-50%

- Kishore Rao, ABMP Seminar. Key Note Address

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4. IS BIOTECH A BOON 0R BANE?

Mixed opinions India's population is growing faster than its ability to produce rice and wheat. Given land constraints and the large projected demand for food, the decline in agricultural productivity is a matter of serious concern. Today this makes Biotech to increase productivity a necessity. Biotech is seen as an important way of meeting Indias food needs.

- Kishore Rao, ABMP Seminar. Key Note Address

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INDIAN BT COTTON
A GLOBAL SUCCESS MODEL

: BT cotton is planted in 8.4 mil ha. this now occupies 87% of total cotton, up from 80% in 2008. For the eighth consecutive year, the hectarage, adoption rate and the number of farmers using Bt cotton in India in 2009, all continued to soar. The increase from 50,000 hectares in 2002, (when Bt cotton was first commercialized) to 8.4 million hectares in 2009 represents an unprecedented 168-fold increase in eight years. In 2009, for the first time, multiple gene Bt cotton occupied more hectares (57%) than single gene Bt cotton (43%). Source ISAAA

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- Kishore Rao, ABMP Seminar. Key Note Address

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- Kishore Rao, ABMP Seminar. Key Note Address

5. AGRICULTURES POSITION IN INDIA

Key Indicators at Constant Prices (2004-05) in % Item Growth in GDP in Agriculture & Allied Sectors Agriculture Share in GDP - Agriculture and Allied Sectors Agriculture Share of Agricultural Imports in Total Imports at Current Prices Share of Agricultural Exports in Total Exports at Current Prices Employment in agriculture Sector as Share of Total Employment 2007-08 4.7 5.0 16.4 13.9 2.95 12.05 2008-09 1.60 1.10 15.70 13.20 2.74 10.23 52.1
- Kishore Rao, ABMP Seminar. Key Note Address

NORMAL AREA1 MAJOR CROPS 000 HA R ice 42,568 Jute Wheat 26,508 Groundnut Bajra 9,988 R apeseed Jowar 9,195 Sesame Maize 7,481 Coconut R agi 1,705 CastorBarley 647 Linseed Gram 6,874 Tobacco Other Pulses 13,649 Tea Pigeon pea 3,505 Coffee 2 Cotton 7,987 Sugarcane

000 HA 837 6,462 6,237 2,039 1,926 775 458 402 516 317 4,222

India's diverse economy encompasses both traditional village 16 farming and modern agriculture and provides livelihood for approximately 600 million Indians

6. OTHER BUZZ IN SEEDS WORLD

Bt Brinjal suspended Biotech services dominate R&D- molecular markers, marker assisted breeding, Bio-informatic services, Custom genotyping, DNA fingerprinting, DNA isolation,. DNA markers,DNA marker discovery, DNA sequencing, Genetic maps, Genomics services, Germplasm characterization, Marker-assisted backcrossing, Markerassisted breeding, Marker-assisted selection etc NUE & Drought tolerance set to change how agriculture and food security issues will be viewed. Technology to dominate agriculture in future Piracy and Intellectual property protection dominate consciousness of the seed worlds thinking

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- Kishore Rao, ABMP Seminar. Key Note Address

- Kishore Rao, ABMP Seminar. Key Note Address

WHAT IS OUT AND WHAT IS IN THE SEED GAME? A PHILOSOPHICAL LOOK

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BUSINESS IS IN
Agriculture Business
- Kishore Rao, ABMP Seminar. Key Note Address

Contentment

Ambition

idea

reality

Trust

Commercial distrust

The farmer is looking at Agricultue as business. Agriculture is no longer an end, its a means to the end called business

WHERE IS THE SELF CONFIDENCE?

Self confidence here means ability to covert an idea into reality The problem arising due to lack of self confidence is inability to bring out cutting edge products despite entrepreneurial drive and professionalism Self confidence is lacking in Indian R&D

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INDIAN SEED COMPANIES IN, INNOCENCE, TRADITION OUT

Indian Seed Companies: Mahyco, Advanta, Nuziveedu, Vibha, Shriram & Others All respected globally and come on to their own. Seeds industry in no more a multinational dominated business -Advanta is Indias seed multinational.
- Kishore Rao, ABMP Seminar. Key Note Address

Innocence is dead What was innocence?

Old: I dont know, Id like to know Now: Let me see if youre telling me the right thing or fooling me

Old: Ill go with what youre saying Now: Give me two good reasons why I should believe you

Tradition is dead

The so-called village head is no longer the unquestioned authority. Theres no blind following of legacies The power has shifted more in favour of the rich and the successful. Thats where the wisdom is looked for

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PUBLIC SECTOR IS HISTORY?

The public sector driven picture of agricultural research has, however, been changing. Universities no longer occupy the commanding heights Except in crops where private sector has no interest, public sector is no where!

- Kishore Rao, ABMP Seminar. Key Note Address

LOCALIZATION IS OUT

Local context no longer holds. Mass media is fast breaking down walls between markets While localisation is out, globalisation is in We enter truly globalizing and "boundary less" economy In today's environment, organizations are embedded both locally and globally. Marketers need to account for these different levels in order to understand the market.

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- Kishore Rao, ABMP Seminar. Key Note Address

WHAT CAN WE LEARN FROM OTHER INDUSTRIES?

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LEARN FROM CONSUMER PRODUCTS

What to Learn? Keeping Consumer Interest Alive Consumer products like soaps are constantly upgrading, modifying, repacking, reinterpreting the productvia countless product extensionsconserving lot of value. Which is the longest running seed industry product?
- Kishore Rao, ABMP Seminar. Key Note Address

LEARN FROM CONSUMER ELECTRONICS

What to Learn? Reinventing product

Consumer electronics products like cellphones are adding new features, new technology and conveniences to the product. The rate of innovation is so fast that a product becomes obsolete in 3 months.

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LEARN FROM PHARMA INDUSTRY

What to Learn? Discovery Pharma industry pros are regularly discovering new products and they take pride in introducing new drug formulations. And they are small players as well as giants. This enables small niches for all.

- Kishore Rao, ABMP Seminar. Key Note Address

LEARN FROM AMWAY What to Learn? Direct Marketing. Amway is an amazing company that has reinvented a marketing model by going direct to the customer and creating huge wealth. Could we learn from them?

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