kaveri seed company limited kavei seeds" Bombay Stock Exchange Ltd., National Stock Exchange of India Ltd. 1st Floor New Trading Ring Exchange Plaza, 5th Floor, Plot No.C/l, G Block, Rotimda Building Bandra Kurla Complex, Bandra (E) P.J.Towers, Dalal Street, Fort, MUMBAI - MUMBAI - 400 0 0 1 400 0051 Scrip Code: 532899 Scrip Code: KSCL Dear Sir, Sub: Presentation: Kaveri Seed Q4& F Y 201 8 Results Announced on 24th May, 201 8-Reg Please find attached herewith Presentation of Kaveri Seed Company Limited 4 4 & FY 2018 Result announced on 24th May, 2018. The same was displayed at our Company's website at www.kaveriseeds.in This is for your kind information and record. Thanking you, Yours faithfully, For KAVERI SEED COMPANY LIMITED C.MITHUN CHAND WHOLE TIME DIRECTOR Encls: a/a.
Kaveri Seed Company Limited Investor Presentation – May 2018
Safe Harbour Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Kaveri Seed Company Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. 2
Contents Industry Backdrop & Outlook Business Overview Quarterly Performance 5 Years Financial Performance 3
BUSINESS OVERVIEW 4
Industry Overview The Agriculture sector commands the largest share of the country’s total land area at about 48% (or 156 million hectares) o compared to USA’s 18% (or 158 million hectares) and China’s 15% (or 106 million hectares). While India has more arable land than China, its production is only half that of China The reasons for the lower productivity are low usage of high quality seeds, fertilizers, pesticides, lower farm mechanization, o weak credit facilities, shortage of water and energy The organized Indian seed industry has been in existence since 30+ years; however the last decade has witnessed exponential o and transformational growth The Indian Seed Industry is the 6th largest in the world in value terms accounting for about 4.5% of global industry preceded by o the US (27%), China (22%), France (6%), Brazil (6%) and Canada (4.8%) In volume terms consumption has seen a CAGR of 8.4% from FY09 to FY15 to reach 3.5 million tonnes o Use of branded seed and hybrid seed has been consistently increasing, Seed Replacement Rate (SRR) on the rise o Corn, 9% Indian Seed Market Varietal Rice, 13% Europe, 26% Hybrid Rice, 8% Forecast China, 41% Wheat, 5% Global Vegetable, 16% Crop Soybean, 4% Vegetable 3.01 USD Bn Segment Seed Market Bajara, 3% North America,9 % 1.85 0.70 0.35 Jowar, 2% Latin America, 7% FY15 FY20E Mustard, 3% Cotton, 36% Rest of APAC, 10% India, 7% Vegatable Field Sunflower, 1% Source: ISF & Sathguru Analysis (Rs/$ Exchange rate: FY15 at 65.42) 5
Industry Overview Cotton Seed Paddy Corn (Maize) Vegetables o High market penetration of o Paddy is the largest crop o Maize is the most widely o Hybrid vegetable seed is one hybrids under cultivation in India grown crop worldwide of the fastest-growing and is the staple food for segments in India estimated o Growth a function of market o India is the world's 6th large population to be around INR 2,000 crore share gains, High Density largest producer and 5th Planting and Mechanical o Hybrid penetration at less largest consumer of maize o India is the second-largest Harvesting than 10% producer of vegetables in the o Maize acreage has grown in world, after China o Pricing subject to GOI’s o Farmers used saved seed; India over years as it is Price Control Order however branded and highly adaptable to different o Round the year crop, hybrids gaining increased season, requires less water, safeguarding from crop shift o KSCL is market leader acceptance easy to grow with good patterns o Company developed commodity price o Market for both selection hybrids with only the pest variety rice and hybrid rice o Demand for Maize in India control trait sourced under growing rapidly in expected to continue to license grow due to demand from feed industry (accounting for ~50% of domestic maize demand) and export opportunity (seen a strong 24% CAGR in FY2005-14) 6
The Kaveri Moat: Seeding Profitable Growth Strong P&L record, Cash Leadership in key crops: rich, consistent dividend Top 5 Rank paying Benchmark R&D: Comprehensive germplasm Diverse Product portfolio repository addressing crop rotation & shift Market adjacent, Pan- India Operations with comprehensive distribution network; unmatched Brand Salience: Preferred Choice for processing & storage farmers, growers, distributors capabilities High Entry Barriers, Farmer-centric Product Indispensable industry Pipeline: Superior agronomic features Best placed to scale-up Unrivalled farmer loyalty: production Nurturing farmer relationships since decades 7
Company Profile With consistent performance in all functional areas of the Company, our endeavour is to make Kaveri a benchmark seed company with the best of research, innovation and product development. Our Vision To realise our vision, every member at kaveri will adopt consequential values of the Company and inculcate sustainable Our business practices. In our endeavour to reach the goal, team Kaveri Mission would uphold all brand promises to its stakeholders. We have over three decades of experience in application of the science of genetics and principles of plant breeding in the evolution of crop hybrids, quality seed production, conditioning and processing and in Our building extensive distribution network with strong farmer Expertise relationship. We are serving Indian farmer consistently to improve their crop Our yields ever since inception. We have developed enduring relationships with farmers across India; and our ‘ Kaveri Seeds’ brand Reputation enjoys wide reputation and loyalty, owing to our product range and quality commitment. 8
Board of Directors & Key Management Mr. G. V. Bhaskar Rao Dr. G. Pawan Mrs. G. Vanaja Devi Mr. C. Vamsheedhar Mr. C. Mithun Chand Founder promoter, Chairman Vice Chairman - Non Founder Director Executive Director Executive Director & Managing Director Executive Dr. S. Raghuvardhan Reddy Dr. P. Vara Prasad Rao Mr. K. Purushotham Dr. S. M. IIyas Board member Board member Board member Board member Mrs. Musinipally Chaya Ratan Mr. Satish Patil Mr. G. Vijay Kumar Board member Chief Operating Officer Chief Financial Officer 9
Relevant facts 2,900 7 214 50,000 30 MT/cycle + Years + acres State-of-the-art seed Maize cob drying facility Number of filings to date Land under seed Rich experience in Indian technology, processing seed industry production across and storage plants different agro-climatic zones 100 30,000 600,000 94 16 + sqft + MT/day Developed high-quality Loyal production growers, Cumulative warehouse Product registrations with Environment-friendly hybrid and varieties across across 12 different agro- space at multiple strategic PPV to date cotton delinting capacity field crops and vegetables climatic zone location across India 3 15,000 16 ~ 130 8 rd MT/hour MT/day + Largest producer of hybrid Customer touchpoints Notified hybrids under Total average throughput Ginning capacity cotton seeds in India across India’s 15 key states CVRC- GoI 1,000 750 170 14,000 + MT + + Field promoters, who Total cold storage capacity Motivated team members Outreach trial centres work with farmers all the time 10
A 30 year Transformational Journey Received Seed recognition from conditioning the Department of Commissioned Seed production plant Scientific and seed conditioning Public offer unit started by Launched launched at Industrial plants at Gundla and listing Launched premier Shri G. V. Bhaskar Kaveri Seed Initiated R&D first hybrid Kandlakoi, Research for our Pochampally and in stock cotton Hybrid Rao incorporated programme Maize Telangana R&D initiatives Eluru exchange Jaadoo 1976 1986 1991 1997 2000 2001 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Commission Listed Launched Listed among Listed among The Conferred the Kaveri ed seed among the Kexveg, a new the Forbes the Forbes 'Best Company Bio- Excellence Seeds conditioning Forbes initiative for ‘Best under a under a Billion' achieved Asia Award by completed plant at 'Best under premium Billion’ in Asia in Asia Pacific significant the Department 30 years of Pamulaparth a Billion' in vegetables Pacific benchmark of IT, BT and journey Listed among i, Andhra Asia turnover of S&T, Listed among 'Fastest Pacific over ` 1,100 Government of Pradesh the Forbes 'Best Growing Crores. Won Karnataka. Listed under a Billion' Companies' by the ‘Best among the in Asia Pacific Outlook CEO’ award Forbes 'Best Business by Business under a Billion‘ Today in Asia Pacific 11
Diversified Seed Portfolio Field Crops Vegetables Cotton Maize Rice Tomato Okra Bajra Sunflower Mustard Hot Pepper Watermelon Sorghum Pulses Wheat Gourd Eggplant 12
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