8/2/2019 Indian Seed Market - Snapshot

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The Indian seed market is about Rs 50 bn.

The Indian pesticides market is about Rs. 8000 crores and growing at the rate of 5-7% p.a. Most ofthe MNC'soperate in this market in addition to several formulators who are active in the market.

Global Agrochemical industry grew at a CAGR of 9.3% from 2003 to reach USD 41.7 billion in 2008.North America, European Union and Asia Pacific together consume over 75% of the world'sagrochemicals. Herbicides (45%) and insecticides (33%) are the largest consumed agrochemical.Indian agrochemicals market grew at a rate of 11% from USD 1.22 bn(2008) to ~ US $ 1.36 billion(2009).India's agrochemicals consumption is one of the lowest in the world 0.38 kg / hectare compared toUS (4.5 Kg/hectare) and Japan (11 Kg/hectare).

Indian seed market is estmated to be Rs.70 bn. Farm saved seeds form 75% of the market and rest25% is commercial seeds. Out of the commercial part private sector contributes 75%, and within thisonly 57% has the research capabilities rest are unorganised.

Hence the market size of companies having research capabilities comes to Rs 750 crs.

The Indian seed industry comprises of 350 companies having turnover of less Rs 100 mn. 50 companies having turnover of between Rs 100 mn - 1,000mn 20 companies having turnover of more than 1,000mn

Crop Market (MT) Size %HybridizationCotton 23,000 80Corn 65,000 47Rice 18,500 >3Millet 15,000 43Sunflower 6,500 >95Sorghum (Kharif) 5,000 >95SSG 30,000 >95

Companies

Rallis India acquired majority stake of 53.5% in Metahelix Life Sciences with an investment of Rs 995 mnOn estimated revenues of Rs 1 bn from Metahelix in FY12 and debt free status of the company (as permanagement), valuations work out at EV / sales of 2x.

Company Sales EBIDTA M Cap EV/EBIDTA ROCE

Monsanto

India

360 60 (16.67%) 1200 20 =60/400

=15%Kaveri Seeds 350 72 (20%) 800 11 =75/350

=21%

Camson Bio-technologies

110 25 (22.5%) 85 3.4 =25/125=20%

J K Agri-genetics

150 20 (13.33%) 115 5.75 =20/215=9.3

*above figures are approx. estimated for FY 2012, and JK Agri follows September year end