Kaveri seeds company limited -- kscl

[Donald]

@vishal

some 70 posts in 15 days, So i thought i should also look into the company

Firstly i visited there “” and find no attractive with valuation of 1000 Cr , No proper information no proper details.

2.Secondly i thought like checking the Quality of Employee ,so i searched found some 40 Employees and too have no Excellent background.

3 Finally I did same searched for the peers like camson biotech,Zuari Industries , DCM and found better than this.

May be i am newbie and my thinking in looking into the company can’t be as matured as the seniors members.

Thanks,Vishal Kejriwal

Thanks Vishal,

for your attempts. Sometimes these very attempts can lead to very meaningful results. Its a differentiated way of scuttlebutt, and can prove valuable many a times - I can appreciate this.

Its great to have a mind that -works different from the crowds; I have seen & noted your digging skills in other threads, please keep this up.

The Kaveri story - and its accomplishments - is very promising - no two thoughts about that. Read the links posted by Vinod MS earlierhttp://agrariancrisis.in/2011/06/29/seeds-of-change/ Link: http://agrariancrisis.in/2011/06/29/seeds-of-change/ to counterbalance your being unimpressed with what they put up at the website. But did you read their 2012 AR - that may change the picture you have painted for yourself? Have a look.

We appreciate a lot - folks with diverse skills & approaches to investigating:). We need balance, and you are right about restoring balance - with something to pause and reflect - especially when big momentum kicks in a discussion & the stocks runaway performance:)

Cheers

Donald

1). http://www.kaveriseeds.in/ Link: http://www.kaveriseeds.in/ inFacebook,and atinitialstep

[wpf123]

Promotional video of Kaveri Seeds(BT-Cotton-Jadoo!!)-Posted on Nov’11

Sanjeev Sabharval interacting with Farmers and explaining about BT Cotton Seed in MP.

http://www.youtube.com/watch?v=uBZJ_OVQR8Y&feature=youtu.be&goback=%252Egmp_3894350%252Egde_3894350_member_94521814

[anil1820]

Thanks Ayush

[Donald]

Vinod MS, Others in Bangalore

If anyone has the bandwidth, please try and meetDr KK Narayanan, co-founder and managing director of Metahelix. We can mention researching the Hybrid Seeds space for Investment/Private Equity. (Metahelix is an alternative to the BT route, so may be very interesting to get some perspective from the other side).

Metahelix is an agricultural biotechnology company focusing on developing traits and technologies for crop protection & improved productivity. Hybrid Seeds and traits are commercialized by its wholly owned subsidiary seeds businessDhaanya Seeds.

Both Metahelix and Dhaaanya Seds, are based in Bangalore, Bommasandra.

-Donald

[gaurav12123]

Myfamily have good contacts with nuzeevidu seedshyd.

if u ppl need any info or want to meet them i can help.

[Donald]

Thanks Gaurav.

Have sent you a mail on the same. lets take it from there.

-Donald

[Vivek_6954]

There is an effusive story iN latest issue of Outlook business on Nuzhiveedu Seeds.

The author is going ga ga over the company with almost no mention of Kaveri seeds.Its major competitor mentioned are Raasi and Mahyco. Seems the company is shortly coming out with 900 crore IPO.

The promoter of the co is not straightforward it seems as the company is very much involved in power and had managed to wrangle a coal block as well in UPA 1 bander baat.

[hemant]

hi vivek,

just finished reading the article. a few points to ponder:

1.the chairman mentions that they did not endorse the bt cotton technology intially but did it 2 years after competitors like kaveri and rasi started using that. What is interesting is that they have 30% market share in bt cotton compared to kaveri’s 10% even though they started later than kaveri. this could be an interesting point to explore.

2). article mentions that vegetable hybrids are seeing 30-40% growth rate. this could give us a few hints on what kind of growth potential kexveg(kaveri’s vegetable venture) could have.

3). a recent IIFL research report after they met the kaveri management clearly mentions that the 600 acre land where kaveri develops the seeds is actually owned by the company. what kind of valuations can that have? could thisprovide a floor to kaveri’s business valuation?

[Donald]

Hi Guys,

I am sooo inspired! This is the best set of Management Q&A questions Team ValuePickr has put-together, ever. Have a go. See if I have missed anything important? Comment on the Questioning flow.

And this does not do justice to Anil Kumar's questions. Yet to assimilate that. Sitting on that post dinner!! But thought to share the rest now itself, so you have time to respond, ask for more?

How am I going to administer this in 1 hour?? Problem of plenty :)) Good to Have.

-Donald

Kaveri Seed Company Management Questions -25 Sep 2012

1. TOTAL MARKET OPPORTUNITY

The Indian seed market is among the top ten largest in the world, estimated to be about US$1 billion in 2005. (Source: ISF Secretariat). Total Market size in 2012 is estimated to be ~8000-9000 Cr in India. The Indian hybrid seed industry is expected to grow at 12-15% annually in the coming years.

2. COMPETITIVE LANDSCAPE

Aside from Kaveri, the notable seed companies in India include Pioneer, Mahyco, Monsanto India, ProAgro, Syngenta, Nuziveedu, Vibha and Rasi Seeds. Any trade magazines/industry publications to validate industry figures and market share?

	Nuziveedu	Vibha	Rasi	Syngenta	Pioneer	Mahyco	Monsanto	Pro-Agro
BT Cotton Segment						X	X
BT Cotton Mkt Share						X	X
Other Crops
Other Crops Mkt Share

Monsanto â only Corn?

Nath Seeds -?

Advanta â only bio-fuels story?

Camson â only vegetables?

3. BUSINESS GROWTH DRIVERS

Volume Growth

Price Growth

Margin growth

4. KAVERI PRODUCT SEGMENTS/REVENUE CONTRIBUTION

[FY12 Sales 349.5 Cr ~93% Sales]

BT COTTON

50% of F12 Sales; doubling every year for last few years? What did it take for success? Why did it take so long â 8 years? How much did you totally spend before BT Cotton could be commercialised?

BT Cotton overall market is declining (-12% in FY12?); Whom are you taking market share away from?Why is Competition not able to match up? How long before the trend reverses for Kaveri?

6 BT cotton seeds. Presume this is meant for different regions with different soil and other conditions.A regional break-up of sales of BT cotton over the last few years?

We heard there is some shortage of Cotton Seeds? Mahyco??

CORN

How old is the Corn Hybrid? increased Hybrid Corn pricing 16% CAGR basis over last 20 years?? Is it true Monsanto's Dekalb - is 100 years in existence??

SUNFLOWER

RICE

MICROTEK: [FY12 â 7% of Sales; 23.5 Cr Sales]Where does the company stand currently in terms of competition. If and when company expects it to scale up and start contributing meaningfully to sales and profits?

OTHER:

5. INTELLECTUAL PROPERTY

11000 Germaplasm Bank; What does it take to build this huge a bank; Is this across crops? Across soil conditions? Pests; Drought resistance patterns: Briefly explain what does this take?

168 lines/hybrids registered with PPV&FR, 54 DUS test cleared, 15 in line for certification. 14 Registrations. How long for the 15 in line for Certiification to Commericial availability?

R&D to Registration to Commercial Process. R&D Team size? Skills?

Reverse-Engineering Risks? Partner Farmers? Smaller competition stealing a successful hybrid line?

How does Kaveri's Pipeline compare with those of competitors who have already filed for approvals?

Cold storage & seed bank at Pamulaparty AP, to conserve gene bank built over the years. Significance??

Dupont Unit accuses Kaveri of Gene Piracy in 2011? Any other Litigations? What are the liabilities if you were to lose any of these cases? Please react.

6. CROP SHIFT PATTERNS

Farmers are known to aggressively shift crops depending on their expectations of realisations. Risks?

7. FUTURE GROWTH DRIVERS: 2-3 year timeframe

159 lines/hybrids registered with PPV&FR, 39 have undergone DUS test and15 in line for certification.

CORN: Four corn hybrids KMH 218 Plus, KMH 3426, KMH 25K60, and KMH3712 notified.

How far from commercialisation?

PADDY: hybrids KPH 216, KPH 371, KPH 272, KPH 199 - second stage of national evaluation?

Paddy is the largest market in the country. Currently, the acreage for hybrid rice is nearly 2 million hectares against a total rice acreage of over 40 million hectares. Growth thesis is rice hybrid expanding at the expense of traditional, it may take longer to play out, and such prices will be mostly capped. Can it realistically have an unhindered run like BT Cotton? Regulatory/Political?

How does this compare with the size of the Cotton Market â Acreage & Value Terms?

BAJRA: Bajra hybrid Super Boss (MH1553) notified?

OKRA: significant progress in breeding yellow vein mosaic virus (YVMV) resistant okra hybrids

KexVeg: High value exotic vegetables primarily for exports; Market opportunity/size; Higher Margins?

8. SEED PRODUCTION MODEL

~75000 Acres under Seed Production totally!! all for 350 Cr Sales? How much land does Nuziveedu have under seed production? How do you prevent cannibalisation between competition farmers/Loyalty? How will future growth be met?

Outsourced Farming/Risks? Much of our seed production is carried out on leased land and through production growers. The company enlists loyal production growers - 100,000 such growers - and offers them attractive remuneration. Please elaborate manageability & scalability of the same.

State govt acquiring land from Kaveri in FY 2012 (as much as 124 acres) does not augur well. If it recurs, do they have muscle to replace or their operations/research will get affected. Risks?

Any shortfall in achieving targets in seed production is being compensated by seed reserves and off-season seed production. Please elaborate.

Annual

85% of hybrid seeds production in India happens in AP by 40 different cos??

9. MAHYCO-MONSANTO RELATIONSHIP

Rs. 180/- per bag: Sales Price Rs.930/bag

How many licensees? How many successful? Why is Nuziveedu more successful? And why is Kaveri the next most successful?

What are the Terms? Royalty Increase risks? How does it monitor under-reporting? As per some WTO norms Monsanto can increase royalty by?

10. SALES: DISTRIBUTION/DEALERSHIP NETWORK

15000 distributors; Distributors/Dealers pay months in advance. How do you nurture this critical part? Are they exclusive to Kaveri?

How do you do your Sales/Production modeling? What are the chances that the farmers who have used your seeds this year and had good result from it, will come back to them the next year ? Can this be predicted by doing some field work on this years yield from your seeds and hence production managed accordingly?

Debtor days have improved drastically from 138 days in FY08 to 28 Days in FY12? What are the reasons for this drastic improvement? Is it sustainable?

With monsoon playing truant is there any stress on debtor payments?

11. ENTRY BARRIERS

~600 Cr land; 11000 Gene Bank; 159 filings; Which is the biggest barrier?

12. MEDIUM TERM OPERATIONAL OUTLOOK

COST STRUCTURE

How and where does the company spend its money? Expense break-ups

CAPACITY

62 MT/hour total average throughput; 8330 MT total cold storage capacity; 2,000 MT/cycle in-house drying capacity; 25 MT/day environment-friendly cotton delinting capacity; 30 MT/day ginning capacity

Please demystify this for us.

The 60 crore capex in FY 10-11 was good enough to take the revenue to 400 + cr, what is the next growth plan ? The capex in FY12 was just 11 cr.

TAXATION

Low tax rates by Seed Industry- disputed by Income Tax Department. Favourable judgement in lower courts face risk of being overturned in High Court/Supreme Court?

How does the company view the tax rate it currently pays? Any chances of tax rate increasing going forward? Is there any litigation with tax authorities on the tax rate the company pays?

REGULATIONS

Does the company need any regulatory approval before launching seeds in a new state once it has been successfully launched in another state?

Is there Price capping in any other state than AP?

The Maharashtra Government has recently issued an order cancelling the companyâs(Mahyco) licence to sell and distribute genetically modified BT cotton seeds in the cotton producing states of Maharashtra. How much of your BT Cotton Sales come from Maharshtra, and from Andhra Pradesh?

QTRLY SEASONALITY MITIGATION

Any effort by management to make the 2nd, 3rd and 4th quarter of financial year more productive in terms of sales and profits?

Was Q1FY13 an extraordinary quarter in terms of demand supply mismatch for BT Cotton seeds? How does the company expect future growth?

Q1FY13 Microtek showed a loss. Reasons for the same.

25-30% annual growth sustainable for next 2-3 years

13. LONGER TERM VISION

14. BRAND BUILDING. PROMOTIONS

15. RISKS? NOT DISCUSSED SO FAR

16. DIVIDEND POLICY

Esp now as there is surplus funds and are investing it in mutual funds. 100 Cr CASH

[Donald]

Hi Guys,

Final Revised Question Set. Am I inspired! This is the best set of Management Q&A questions Team ValuePickr has put-together, ever. Have a go. See if I have missed anything important? Comment on the Questioning flow.

How am I going to administer this in 1 hour?? Problem of plenty :)) Good to Have.

Will need to work out a Prioritisation strategy:); where do I spend the most of the time, and what I (can) rush through. Which are the most important parts of the business to understand? Tips welcome.

-Donald

Updated Kaveri Seed Company Management Questions -25 Sep 2012

1. TOTAL MARKET OPPORTUNITY

The Indian seed market is among the top ten largest in the world, estimated to be about US$1 billion in 2005. (Source: ISF Secretariat). Total Market size in 2012 is estimated to be ~8000-9000 Cr in India. The Indian hybrid seed industry is expected to grow at 12-15% annually in the coming years.

2. COMPETITIVE LANDSCAPE

Aside from Kaveri, the notable seed companies in India include Pioneer, Mahyco, Monsanto India, ProAgro, Syngenta, Nuziveedu, Vibha and Rasi Seeds. Any trade magazines/industry publications to validate industry figures and market share?

	Nuziveedu	Vibha	Rasi	Syngenta	Pioneer	Mahyco	Monsanto	Pro-Agro
BT Cotton Segment						X	X
BT Cotton Mkt Share						X	X
Other Crops
Other Crops Mkt Share

Monsanto â only Corn?

Nath Seeds -?

Advanta â only bio-fuels story?

Camson â only vegetables?

3. BUSINESS GROWTH DRIVERS

BT Cotton Volume led Growth

How much of BT cotton Sales was led by volume growth?

BT Cotton Price led Growth

How much of BT cotton Sales was led by Price growth?

Corn Margin led growth

4. KAVERI PRODUCT SEGMENTS/REVENUE CONTRIBUTION

[FY12 Sales 349.5 Cr ~93% Sales]

BT COTTON [43% FY12 Sales]

Doubling every year for last few years? What did it take for success? Why did it take so long â 8 years? How much did you totally spend before BT Cotton could be commercialised?

BT Cotton overall market is declining (-12% in FY12?); Whom are you taking market share away from?Why is Competition not able to match up? Sales have been doubling every year? How long before the trend reverses for Kaveri? Penetration of Cotton Hybrid seeds 90% plus?

6 BT cotton hybrid seeds. Presume this is meant for different regions with different soil and other conditions. A regional break-up of sales of BT cotton over the last few years?

Jadoo BT Cotton Hybrid? And Jackpot?

We heard there is some shortage of Cotton Seeds? Mahyco??

CORN [25% FY12 Sales]

Market Leader? How old is Kaveri's Corn Hybrid? increased Hybrid Corn pricing 16% CAGR basis over last 20 years?? CAGR growth in last few years? Penetration of Hybrid Seeds in Corn?

Is it true Monsanto's Dekalb - is 100 years in existence??

BAJRA [8% FY12 Sales]

CAGR growth in last few years? Penetration of Hybrid Seeds in Bajra?

RICE [4% FY12 Sales]

CAGR growth in last few years? Penetration of Hybrid Seeds in Rice?

MICROTEK: [7% FY12 Sales 23.5 Cr] Sales]

Where does the company stand currently in terms of competition. If and when company expects it to scale up and start contributing meaningfully to sales and profits?

VEG SEEDS:

5. INTELLECTUAL PROPERTY

11000 Germaplasm Bank; What does it take to build this huge a bank; Is this across crops? Across soil conditions? Pests; Drought resistance patterns: Briefly explain what does this take?

168 lines/hybrids registered with PPV&FR, 54 DUS test cleared, 15 in line for certification. 14 Registrations. How long for the 15 in line for Certiification to Commericial availability?

R&D to Registration to Commercial Process. R&D Team strength? Skills? R&D Spends as % of Sales?

Reverse-Engineering Risks? Partner Farmers? Smaller competition stealing a successful hybrid line?

How does Kaveri's Pipeline compare with those of competitors who have already filed for approvals? Any serious competition coming up?

Cold storage & seed bank at Pamulaparty AP, to conserve gene bank built over the years. Significance??

Dupont Unit accuses Kaveri of Gene Piracy in 2011? Any other Litigations? What are the liabilities if you were to lose any of these cases? Please react.

6. CROP SHIFT PATTERNS

Farmers are known to aggressively shift crops depending on their expectations of realisations. Risks?

7. FUTURE GROWTH DRIVERS: 2-3 year timeframe

168 lines/hybrids registered with PPV&FR, 54 DUS test cleared, 15 in line for certification. 14 Registrations.

CORN: Four corn hybrids KMH 218 Plus, KMH 3426, KMH 25K60, and KMH3712 notified.

How far from commercialisation? 50% Penetration?

PADDY: hybrids KPH 216, KPH 371, KPH 272, KPH 199 - second stage of national evaluation?

Paddy is the largest market in the country. Currently, the acreage for hybrid rice is nearly 2 million hectares against a total rice acreage of over 40 million hectares. Growth thesis is rice hybrid expanding at the expense of traditional, it may take longer to play out, and such prices will be mostly capped. Can it realistically have an unhindered run like BT Cotton? Regulatory/Political?

How does this compare with the size of the Cotton Market â Acreage & Value Terms?

BAJRA: Bajra hybrid Super Boss (MH1553) notified?

OKRA: significant progress in breeding yellow vein mosaic virus (YVMV) resistant okra hybrids

KexVeg: High value exotic vegetables primarily for exports; Market opportunity/size; Higher Margins?

8. SEED PRODUCTION MODEL

~75000 Acres under Seed Production totally!! all for 350 Cr Sales? How much land does Nuziveedu have under seed production? How do you prevent cannibalisation between competition farmers/Loyalty? How will future growth be met?

Outsourced Farming/Risks? Much of our seed production is carried out on leased land and through production growers. The company enlists loyal production growers - 100,000 such growers - and offers them attractive remuneration. Please elaborate manageability & scalability of the same.

State govt acquiring land from Kaveri in FY 2012 (as much as 124 acres) does not augur well. If it recurs, do they have muscle to replace or their operations/research will get affected. Risks?

Any shortfall in achieving targets in seed production is being compensated by seed reserves and off-season seed production. Please elaborate.

Annual

85% of hybrid rice seeds production in India happens in AP by 40 different cos??

9. MAHYCO-MONSANTO RELATIONSHIP

Rs. 180/- per bag: Sales Price Rs.930/bag

How many licensees? How many successful? Why is Nuziveedu more successful? And why is Kaveri the next most successful? Is it true Naziveedu started on BT Cotton after Kaveri but has sped past on the strength of better hybrids in Cotton?

What are the Terms? Royalty Increase risks? How does it monitor under-reporting? As per some WTO norms Monsanto can increase royalty by?

10. SALES: DISTRIBUTION/DEALERSHIP NETWORK

15000 distributors; Distributors/Dealers pay months in advance. How do you nurture and incentivise this critical part? Are they exclusive to Kaveri?

How do you do your Sales/Production modeling? What are the chances that the farmers who have used your seeds this year and had good result from it, will come back to them the next year ? Can this be predicted by doing some field work on this years yield from your seeds and hence production managed accordingly?

Debtor days have improved drastically from 138 days in FY08 to 28 Days in FY12? What are the reasons for this drastic improvement? Is it sustainable?

Both bad debts and provision for doubtful debts are increasing over the years. From very nominal amount in 2010, increased to 0.8 Cr in 2011 and to 2.4 Cr in 2012. 10 Cr of receivables more than six months for which no provision is made.

With monsoon playing truant is there any stress on debtor payments?

Inventory Buildup to cater to the huge demand in Q1? Please explain your inventory valuation policy?

Is it correct to say the advances from dealers that show up in Kaveriâs balance sheet at

March 31st every year is a good predictor of the following yearâs revenue?

a) What is the % of advance which customers need to pay at the time of order booking and by what time advance should be paid for availing delivery in the June quarter b) Advance depends on credit profile of customers or its same for all c) Advance only for BT cotton or for all seeds?

11. ENTRY BARRIERS

~600 Cr land; 11000 Gene Bank; 159 filings; Which is the biggest barrier?

12. MEDIUM TERM OPERATIONAL OUTLOOK

COST STRUCTURE

How and where does the company spend its money? Expense break-ups

Sales & Promotion Expenses

Sales Scheme Expenses

CAPACITY

62 MT/hour total average throughput; 8330 MT total cold storage capacity; 2,000 MT/cycle in-house drying capacity; 25 MT/day environment-friendly cotton delinting capacity; 30 MT/day ginning capacity

Please demystify this for us.

The 60 crore capex in FY 10-11 was good enough to take the revenue to 400 + cr, what is the next growth plan ? The capex in FY12 was just 11 cr.

TAXATION

Low tax rates by Seed Industry- disputed by Income Tax Department. Favourable judgement in lower courts face risk of being overturned in High Court/Supreme Court?

How does the company view the tax rate it currently pays? Any chances of tax rate increasing going forward? Is there any litigation with tax authorities on the tax rate the company pays?

REGULATIONS

Does the company need any regulatory approval before launching seeds in a new state once it has been successfully launched in another state?

Is there Price capping in any other state than AP?

The Maharashtra Government has recently issued an order cancelling the companyâs(Mahyco) licence to sell and distribute genetically modified BT cotton seeds in the cotton producing states of Maharashtra. How much of your BT Cotton Sales come from Maharshtra, and from Andhra Pradesh?

NEW SUPERIOR SEEDS INTRODUCTION BY COMPETITION

What is the visibility on competition activity on this front?

QTRLY RESULTS/ SEASONALITY MITIGATION

3.4 Mn Cotton packets. Total market 38-40 Mn packets? So a 10% market share? Was Q1FY13 an extraordinary quarter in terms of demand supply mismatch for BT Cotton seeds? How does the company expect future growth in the next 2-3 years ?

Any effort by management to make the 2nd, 3rd and 4th quarter of financial year more productive in terms of sales and profits?

Q1FY13 Microtek showed a loss. Reasons for the same.

25-30% annual growth sustainable for next 2-3 years

13. LONGER TERM OUTLOOK

14. BRAND BUILDING. PROMOTIONS

15. RISKS? NOT DISCUSSED SO FAR

16. DIVIDEND POLICY

Esp now as there is surplus funds and are investing it in mutual funds. 100 Cr CASH. Company made provision for diminution in value of investment of INR 3.5 Cr. Similarly there are investments of INR 2 Crs in equity and the company has already made provision for diminution of value of equity by INR 1.5 Crs.

[vidurchhabra]

Impressed mate! I think you covered everything, I just hope you have enough time to cover everything, but persist! Especially my pet question on dividend, don’t leave that one to the last!

[hemant]

@Donald

to scale up growth in the

hi donald, a good set of questions. few things that come to my mind:

1). if you read the outlook business article mentioned above, you would see that nuziveedu started 2 years later than kaveri and scaled up to 30% market share while kaveri is still at 10%(that too only this year). what took kaveri so long

there while nuziveedu could scale up so fast. i am posting a link to that article below:

http://business.outlookindia.com/article.aspx?282309 Link: http://business.outlookindia.com/article.aspx?282309

2). also, the article mentions that the company has been seeing 30-40% hybrid vegetable seeds for sometime now. is that what led kaveri to start the kexveg venture and if yes, do they also see this a significant growth driver for them?

3). IIFL research report released today mentions that kaveri owns the 600 acre land that it operates on. can we confirm this with the management? if they do own this, how much do they think it is worth?

[constantseeker_]

Super stuff!! Can’t wait for the meeting and answer to these questions

[Prdnt_investor]

@hemant

hi donald, a good set of questions. few things that come to my mind:

if you read the outlook business article mentioned above, you would see that nuziveedu started 2 years later than kaveri and scaled up to 30% market share while kaveri is still at 10%(that too only this year). what took kaveri so long there while nuziveedu could scale up so fast. i am posting a link to that article below:

also, the article mentions that the company has been seeing 30-40% hybrid vegetable seeds for sometime now. is that what led kaveri to start the kexveg venture and if yes, do they also see this a significant growth driver for them?

IIFL research report released today mentions that kaveri owns the 600 acre land that it operates on. can we confirm this with the management? if they do own this, how much do they think it is worth?

Hi Hemant,

Regarding 1)

The recent success of Kaveri in the BT Cotton space is due to the launch of recent brands introduced only 3 years ago.

_
_

Overall industry volumes have dropped ~10% yoy from 42mn packets to about 38mn packets. This translates into a steep jump in the companyas market share for BT Cotton from ~4% last year to ~9% this year (1QFY13). With ~35 companies in the BT Cotton seed market, we believe KSCL has been able to eat into market shares of the smaller companies and the top 5 a 6 companies have held their positions with Nuziveedu seeds remaining at the top with about 28 a 30% market share

Theincrease in market share was primarily on the back of the companyas two leading brands aJadooa and aJackpota, which KSCL introduced ~3 years ago and has now been increasingly accepted by farmers for its superior quality.

Regarding 2)

Page 12/66 AR 2012 mentions,

The consumption of vegetables increases with rising life styles. The focus of our new
initiative, Kexveg, is on high value exotic vegetables primarily for exports.

So this being targeted at the export market primarily will it be fair to envision the similar 30-40% growth as seen by Nuziveedu from chillies, tomatoes and okra.

Regarding 3)

The DRHP mentions on Page 27/236

Owned land for R&D
The nature of the agri-inputs industry is such that we require adequate protection of our germplasm and related operations. R&D on third party land carries a higher risk of biopiracy. Of the total land under R&D, over two-thirds (2/3rd) of the land is
owned by us. This gives us a unique advantage over most other players in the Indian industry.

1). to scale up

http://business.outlookindia.com/article.aspx?282309 Link: http://business.outlookindia.com/article.aspx?282309

2). growth in the

[Vedant]

Hi Rudra and Hemant,

I think Kexveg is into cultivation of herbs and vegetables and not just seeds. http://www.exportersindia.com/kaveriseedcompany/This could be totally different growth segment for them.

Cheers

Vinod

[hemant]

@Prudent_Invest_

Hi Hemant,

Regarding 1)

The recent success of Kaveri in the BT Cotton space is due to the launch of recent brands introduced only 3 years ago.

industry volumes have dropped ~10% yoy from 42mn packets to about 38mn packets. This translates into a jump in the market share for BT Cotton from ~4% last year to ~9% this year companies in the BT Cotton seed we believe KSCL has been able to eat into market shares of the smaller companies and the top 5 6 companies have held their positions with Nuziveedu seeds remaining at the top with about 28 was primarily on the back of the two leading brands and has now been increasingly accepted by farmers for its superior

Regarding 2)

Page 12/66 AR 2012 mentions,

consumption of vegetables increases with rising life styles. The focus of our new
initiative, Kexveg, is on high value exotic vegetables primarily for

So this being targeted at the export market primarily will it be fair to envision the similar 30-40% growth as seen by Nuziveedu from chillies, tomatoes and okra.

Regarding 3)

The DRHP mentions on Page 27/236

land for R&D
The nature of the agri-inputs industry is such that require adequate protection of our germplasm and related R&D on third party land a higher risk of Of the total land under R&D, over two-thirds (2/3rd) of the land is
owned by us. This gives us a unique advantage over most other players in the Indian

hi rudra,

thanks for the clarifications. one thing I still could not understand is that despite being the early entrants in the hybrid cotton seeds area, why could they not come up with the brands which they have done over the last 2-3 years. what does that imply for their success rate in new products and also what kind of success rates do they expect in their paddy and veg seeds?

_

_
_

Overall ** steep companyâs ** (1QFY13). With ~35 ** market, ** â

_ â 30% market share
Theincrease in market share _

** companyâs âJadooâ and âJackpotâ, which KSCL introduced ~3 years ago ** quality. _

_ The exports. _

_ Owned ** we operations. **** carries biopiracy. ** industry.

_

[Vedant]

Hi,

Here is a teaser on the Kaveri meeting by Donald and team.

Posting the below on behalf of Donald:

"Super duper meetings. 4 hrs at Kaveri. Then 2.5 hrs at Vibha. Later today at Nuziveedu. Also meeting 1 or 2 distributors/dealers.

Kaveri. No negatives visible. Simple people… Explained everything in great detail with very convincing straight from gut…no pretensions…no hiding…even the difficult ones. Body language was of relaxed composure… confident, in control, but also grounded…very real.

**Trying to understand the industry and issues better now by meeting everyone. **

Team Hyd - Richa, Omprakash, Tirumala Rao…was just super on making things happen…everything flowing naturally and smoothly.

On the road meeting people, more later"

Request Om, Richa and Tirumala Rao to share their views too

Cheers

Vinod

[Vivek_6954]

Message from Donald on his interactions at Hyderabad.

The required balance emerges from dealer interview n Nuziveedu R & D head interview. It has to sink in. Very promising but it’s not a nobrainer . FY 14 is the critical test of ability to. Go to the next level.

Any activities by fellow boarders on Kaveri today .

[hemant]

man! i can’t wait for donald to come back and give us the full picture…already seems like an amazing hollywood thriller where i am getting goosebumps thinking about what the end would be

[amith]

@hemant

man! i can’t wait for donald to come back and give us the full picture…already seems like an amazing hollywood thriller where i am getting goosebumps thinking about what the end would be

+1

and on top of that Kaveri price is racing with rising volumes. Volumes are now more than 1% of free float and increasing every day. I simply decided to take position a few days ago and quit if the meet comes up with some strong concerns.