Seed Industry Strategic Overview

K о Industry Overview The Agriculture sector commands the largest share of the country's total land area at about 48% (or 156 million hectares) 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, 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 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 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 Use of branded seed and hybrid seed has been consistently increasing, Seed Replacement Rate (SRR) on the rise Corn, 9% Varietal Rice, 13% Hybrid Rice, 8% Europe, 26% Vegetable, 16% Crop Segment Wheat, 5% Soybean, 4% China, 41% Bajara, 3% Global Vegetable Seed Market/ North America,9 % Cotton, 36% Jowar, 2% Mustard, 3% Latin America, 7% Rest of APAC, 10% India, 7% Sunflower, 1% Source: ISF & Sathguru Analysis USD Bn Indian Seed Market Forecast 3.01 1.85 0.35 0.70 FY15 FY20E Vegatable Field (Rs/$ Exchange rate: FY15 at 65.42) 5

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