Seed. Seed. Indian. Industry. Steel. Tyre. otel. Pesticide. The. oal. nking Express Service. Renewable Energy Source. Express Service.

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1 inum Banking Cement Commercial Vehicle Cotton & Cotton Ya omponent Business Process Management (BPM) Construction Educat arel Chlor-Alkali CRAMS Crude Oil Gems & J Natural Gas Pesticides Power Generation Steel Pa anganese Ore Pharmaceutical Refining & Marketing Reta ight Transport Shipping Sugar Tractor Telecom Tower Wheeler S Tyre Tea-Coffee Telecom-W Energy Sources Roads & Highway Zinc & Lead n Made Fibre Paper Pipe Housing Finance Hospital Passenge Shipbuilding Renewable Energy Source Aluminum Cotton & Cotton Yarn Tracto oal otel nking Express Service Steel Two Wheeler Express Service ads Freight Transport Gems & Jewellery ed Passenger Vehicle CRAMS January 2014 Pesticide Cr Natural Gas

2 seed industry is the fifth largest seed market in the world, accounting for 4.4% of global seed market after the U.S. (27%), China (20%), France (8%) and Brazil (6%). In terms of global trade, India is almost self-sufficient in flower, fruits and vegetables and field crops seeds. According to NSAI, the market size of seed is expected to grow at a healthy rate on account of favourable global grain demand supply fundamentals, grain productivity well below world's major grain producing regions and government's continued focus on improving seed replacement rate. India is the fifth largest seed consumer in the world, with 4.4% global seed market share Focus towards increasing farm produce would continue to boost demand for high productive hybrid seeds in near to medium term Rising awareness among the farmers, growth in income levels owing to constant rise in prices of agriculture commodities combined with availability of better quality seeds would continue to push seeds demand in near to medium term period. Further with gross sown area not expected to improve significantly and spiralling requirement from ever growing population, demand for key ingredients like high quality seeds, fertilizers, irrigation and pesticides that improves the productivity is on rise. As emphasis is been given more on seed as it is the first input in agriculture, there have been constant biotechnological innovations in seeds towards improving yield and immunity from pest, herbs, etc. According to Ministry of Agriculture (MOA), the organized sector accounts for 22-25% of the total seed distributed in the country. organized sector comprises distribution of certified & quality seeds (i.e. includes both public and private sector companies) while the unorganized sector mainly comprises of farm-saved seeds and counterfeit, cloned or passed-off seeds. Counterfeit and cloned seeds are seeds manufactured and sold illegally as legitimate seeds, whereas passed-off seeds may be manufactured or packaged to resemble legitimate seeds. Organized sector still comprises of mere 22-25% of total certified/ quality seeds market in India Rising awareness and income levels, combined with introduction of stricter norms to provide fillip to organised players Rising income levels owing to increase in minimum support price (MSP) for almost all the crops off-late and increased availability of high quality seeds has fuelled growth for orgnaised market during last 4-5 years. Further introduction of more stringent s Bill which has been tabled in the Parliament, stresses on controlling the market of spurious seeds, which will aid the growth of organised players who provide high quality seeds. CARE Research foresees industry revenues to witness a rise of around per cent in FY14. Healthy growth foreseen in volumes owing to good monsoon this fiscal, combined with rise in realization on the back of gradual change in demand towards favourable product mix (i.e. hybrid seeds) in domestic market will trigger this rise. CARE Research foresees, despite improved demand and favourable crop economics, EBITDA margins of most domestic seed companies to remain under strain in near term. Rising competitive intensity would lead to high selling and distribution expenses as players would strive to increase their market presence and thereby keep margins subdued at operating levels. topline to get boost from the rise in volumes this fiscal

3 Outlook on seed market size FY18 Outlook on seed demand Outlook on profitability Overview of Global Agriculture Global grain stock-to-use ratio Global fruits & vegetables demand Cotton stock-to-use ratio Overview of Agriculture Table of Contents grain production/demand/supply/inventory cotton production Agriculture value chain Section- I CARE Research's Outlook Section- II Section Key factors affecting demand for agricultural inputs in India Grain demand Farm income Favorable weather conditions and irrigation facilities Availability of credit Others Overview of Evolution of industry seed market size seed industry demand Cotton seed the main crop Component of seed industry Organized Unorganized Component of Organized seed industry Public Private Grain productivity (India v/s. global) Cost Margins Raw material cost Selling and distribution cost Employee cost EBITDA margin Regulations Regulatory scenario & Evolution Plant Varieties and Farmers' Rights Act, 2001 Patent registration Procedures for registration of plant varieties Application for registration price control

4 Advanta India Limited Company background Company financial performance Financials Monsanto India Limited Company background Company financial performance Financials Kaveri Company Limited Company background Company financial performance Financials Global grain demand supply statistics Global cotton demand supply statistics SECTION- III Company Scan Section- IV Annexures Key cotton producers, consumers, importers and exporters grain demand supply statistics cotton demand supply statistics Distribution of certified/quality seeds trend Fertilizer demand trend Global area of biotech crops Institutional credit to agriculture sector Number of seed varieties developed by ICAR/SAUs in India Country-wise seed market size seed market size Overview of Global Agriculture Grain stock-to-use Grain production growth v/s demand growth List of Graphs & Tables Section- II Section Fruits and vegetables supply demand growth in the past 15 years Cotton stock-to-use ratio Grain price index trending upwards Table of Contents Overview of Agriculture India v/s world land statistics India's agriculture position in global market for key crops grain output Yield in major grain producing regions cotton output Yield in major cotton producing regions State-wise cotton acreage in India MSP for key crops in India

5 Cost of cultivation for key crops in India s demand trend Fertilizer demand trend Grain area under irrigation Output/monsoon co-relation Overview of Table of Contents Country-wise seed market size - Country-wise Major seed exporting countries - Country-wise Major seed exporting countries Country-wise seed market size demand (volume) trend in India seed market size (value) seed demand market segmentation organized seed demand break-up Share of private sector in seeds market (by volume) Operating revenues of major private sector seed companies in India Cost Margins Regulation Raw material cost Selling and distribution cost Employee cost EBITDA margin Evolution of seed industry and major regulatory changes Number of applications filed for patent registration Application procedures for registration of plant varieties Examination procedures for registration of plant varieties Historical trends in Bt Cotton pricing Advanta India Limited Section- III Company Section Monsanto India Limited Kaveri Company Limited

6 Credit Analysis & Research Ltd. (CARE), promoted in 1993 by some of the leading banks and financial institutions including Industrial Development Bank of India (IDBI), Canara Bank and others is amongst the premier credit rating agencies in India and provides credit rating, research and information services. CARE Ratings is well equipped to rate all types of debt instruments including Commercial Papers, Fixed Deposits, Bonds, Debentures, Hybrid Instruments, Preference Shares, Loans, Structured Obligations, Asset Backed Securities, Residential Mortgage Backed Securities etc. CARE's rating methodologies are in line with the best international practices. CARE Research & Information Services (CARE Research)is an independent division of CARE. CARE Research services a variety of business research needs with credible, high-quality research and analysis on various facets of the Economy and Industries. Publications include Reports, Debt Market Review, Budget Analysis and other policy impact analysis and special commentaries on topical issues. CARE Research offers research reports on various industries. reports by CARE Research provide insightful data and analysis on various industry sectors and CARE's outlook on the same. To view list of industries under our coverage you can visit For any queries regarding the content & scope of the report kindly reach us at careresearch@careratings.com To place an order, please contact: Manish Sukhija Business Development - CARE Research Credit Analysis & Research Ltd. 503, Kaledonia, Sahar Road, Off Western Express Highway, Andheri (E), Mumbai Cell: , Tel.: (Direct), (Board) CORPORATE OFFICE MUMBAI Credit Analysis & Research Ltd. 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai Tel: , Fax: , care@careratings.com 503, Kaledonia, Sahar Road, Off Western Express Highway, Andheri (E), Mumbai Tel.: ; Fax: REGIONAL OFFICES AHMEDABAD 32, Titanium, Prahaladnagar Corporate Road, Satellite, Ahmedabad Tel: Fax: BENGALURU Unit No , 11th Floor, Prestige Meridian II, No.30, M. G. Road, Bangalore Tel: , Telefax: CHANDIGARH 2nd Floor, S.C.O , Sector 34-A, Chandigarh Tel: / 09 CHENNAI Unit No. O-509/C, Spencer Plaza, 5th Floor, No. 769, Anna Salai, Chennai Tel : / Fax: HYDERABAD 401, Ashoka Scintilla, , Himayat Nagar, Hyderabad Tel: Fax: JAIPUR 304, Pashupati Akshat Heights, Plot No. D-91, Madho Singh Road,Near Collectorate Circle, Bani Park, Jaipur Tel: / 14 KOLKATA 3rd Floor, Prasad Chambers, (Shagun Mall Building), 10A, Shakespeare Sarani, Kolkata Tel: / 02 Fax: NEW DELHI 13th Floor, E-1 Block, Videocon Tower, Jhandewalan Extension, New Delhi Tel: , Fax: PUNE 9th Floor, Pride Kumar Senate, Plot No. 970, Bhamburda, Senapati Bapat Road, Shivaji Nagar, Pune Tel: MALDIVES 4th Floor, CHAMPA Center Point, Chandhanee Magu, Male' Republic of Maldives. Tel: / Mobile: / Fax: CIN: L67190MH1993PLC071691