Indian Economic Overview
GDP growth rate in 2023 is expected to be 5.9%, lower than the 2022
growth of 6.8% due to subdued external demand and tightening monetary policy. However,
India will remain the fastest growing major economy
Fiscal policy statements highlighted that Indian agriculture sector is
projected to grow by 3.5 per cent in FY 2022-23. Apart from meeting domestic requirements,
India has also rapidly emerged as the net exporter of agricultural products in recent
years. With the agriculture exports touching $50.2 Bn in FY 2022-23. The total kharif food
grain production in the country is estimated at 149.9 million tonnes higher than the
average Kharif food grain production of the previous five years. Although, the area sown
under paddy was about 20 lakh hectares less than compared to 2021.
(Source: https://pib.gov.in/PressReleasePage.aspx)
Outlook
The Statement of Fiscal Policy observed that Growth in FY 2023-24 will
be supported by solid domestic demand and a pickup in capital investment. The current
growth trajectory will be supported by multiple structural changes like IBC and GST that
have enhanced the efficiency and transparency of the economy and ensured financial
discipline and better compliance.
Indias public digital infrastructure expansion is leading to
accelerated financial inclusion for low-income households, micro and small businesses, and
the economys rapid formalization. Together these two factors - balance sheet strength and
digital advancement - are growth differentiators not only for FY 2023-24 but also in the
years ahead.
The path-breaking policies such as the PM Gati Shakti, National
Logistics Policy and the PLI schemes will strengthen the infrastructural and manufacturing
base while bringing down costs in the value chain a strong foundation for sustained
economic growth and improved resilience.
(Source: https://pib.gov.in/PressReleasePage.aspx)
Indias Agriculture Sector
According to the estimates, released by the Ministry of Statistics
& Programme Implementation (MoSPI), the GVA of agriculture and allied sectors in
2020-21 was 20.1%, it was 19% in 2021-22 and it again came down to 18.3% in 2022-23
Farmers Income
The minister also informed about farmers income, which is
estimated through the survey conducted by NSSO. As per last "Situation Assessment
Survey" conducted in 2012-13, monthly agricultural household income was estimated as
Rs.6426, which increased to Rs.10218, as per the survey conducted in 2018-19. Government
had constituted an Inter-Ministerial Committee in April, 2016 to examine issues relating
to doubling of farmers income and recommend strategies to achieve the same. The committee
submitted its final report to the government in September, 2018 containing the strategy
for doubling of farmers income through various policies, reforms & programmes.
Funds for Kisan Drones
For promotion of Kisan Drones, financial assistance at 100% of the cost
of drone up to a maximum of Rs. 10 lakhs per drone is provided for purchase of drones for
their demonstration by institutes under Indian Council of Agricultural Research, Farm
Machinery Training & Testing Institutes, Krishi Vigyan Kendras (KVKs), State
Agriculture Universities (SAUs), State and other Central Government Agricultural
Institutions and Public Sector Undertakings (PSUs) of Government of India engaged in
agricultural activities.
Efforts to boost interest in farming
The percentage of workers in the usual status engaged in agriculture
and allied sector, has gone down. Hence, government has made several efforts to boost
interest of the people in farming. The government has taken several policies, reforms,
developmental programmes and schemes for making agriculture more profitable profession
also like supplementary income transfers under PM-KISAN of Rs 6000 per year in three equal
installments, increase in Minimum Support Price (MSPs) for all Kharif & Rabi crops
ensuring a minimum of 50 percent of profit margin on the cost of production, crop
insurance under Pradhan Mantri FasalBimaYojna (PMFBY), better access to irrigation under
Pradhan Mantri Krishi Sinchai Yojana (PMKSY), special attention for creation of
infrastructure through Agri Infrastructure Fund (AIF) with a size of Rs. 100,000 crore,
new procurement policy under PM-AASHA in addition to FCI operations, Kisan Credit Cards
(KCC) among others. (Source: https://newsonair.com/2023/03/22/)
Mangalam seeds Overview
Mangalam Seeds is one of the leading seed producing companies in India.
With over decade of industry experience, it has emerged as a premier multi-crop seed
producing Company in India. Over the years, the Company has enhanced farmer trust by
providing a complete seeds basket, comprising of Field and Vegetable crop seeds. Backed by
its strong R&D program, the Company specializes in the production of crop seeds
including maize, castor, sesamum, bajara, fennel, mustard, cumin and a number of
vegetables.
Mangalam Seeds is engaged in producing and delivering high quality
seeds with specialization in forage crops. The Companys expertise is in the supply
of high potential, versatile and disease, pest and drought tolerant hybrid seeds which are
adaptable to different agro-climatic conditions. The technology used by the Company is to
develop better seeds, nurture and develop new agronomic practices that can drive big and
increase yield and productivity.
We build our brands and develop our products through extensive Research
and Development activities, relentless innovation and crystal-clear marketing carried out
by our Company. This is a powerful blend that helps and inspires us, our Farmers
& Customers. We are committed to make sustainable agriculture using
farming techniques that can protect the environment, public health, human communities and
animal welfare.
We pursue to optimally utilize our research, ideas and experience
towards developing the quality hybrids and farmers prosperity. Feeding an ever-increasing
population is huge responsibility and we at Mangalam Seeds are proud to be preferred
choices of farmers.
We build our brands and develop our products through extensive Research
and Development activities, relentless innovation and crystal-clear marketing carried out
by our Company. This is a powerful blend that helps and inspires us, our Farmers
& Customers. We are committed to make sustainable agriculture using
farming techniques that can protect the environment, public health, human communities and
animal welfare.
We pursue to optimally utilize our research, ideas and experience
towards developing the quality hybrids and farmers prosperity. Feeding an ever-increasing
population is huge responsibility and we at Mangalam Seeds are proud to be preferred
choices of farmers.
Learning and Development of Employees
Employees growth and learning have become a fundamental part of
organizations business strategy in light of the everchanging normal. The time demands to
believe in a culture of constant learning and upscaling our skills to keep up with the
ever-growing dynamic world. Capability building of employees is a continuous process and
is of prime importance in Mangalam. There are regular trainings which are conducted for
employees as per their job-related requirements to be more effective in their current role
and help them in preparing for their next role. The trainings are designed as per the
learning needs of employees and in consultation with our stakeholders. The trainings are
conducted through various modes, including classroom training, on-the-job learning, and
training using technological platforms etc. The Company plans multiple learning
interventions in partnership with its internal in-house experts and externally with the
support of vendors.
Environment Safety, Health and Energy Conservation
Safety at workplaces of paramount importance to the Company. It
continuously strives to ensure various training and awareness programs are conducted
throughout the year. The aim is to maintain the highest standards of safety across
factories and workplaces and ensure the latest best practices are implemented across the
business to bring operational efficiencies and save energy.
Risk Mitigation Framework
Despite the strong growth drivers, the Indian agrochemicals industry
faces challenges in terms of low awareness among a large number of end-users spread across
the geography. Managing inventory and distribution costs is a challenge for the industry
players in the wake of volatility in the business environment. The performance of the crop
protection industry and other Agri-inputs is dependent on monsoons, pest and disease
incidences on crops. Agrochemical companies face issues due to the seasonal nature of
demand, the unpredictability of pest attacks and the high dependence on monsoons.
Compliance with growing regulatory norms is a continuing requirement
and could lead to delays in obtaining necessary approvals. Changes in guidelines or
policies in various geographies may also lead to sudden disruption of business in
specified products. Many agrochemical companies have foreign exchange exposure either in
the form of forex loans or exports and imports. For companies that operate largely in the
domestic arena, any major forex movement may affect profitability due to fluctuating
import costs. While on the one side input costs could increase, weak monsoons could reduce
pricing flexibility, thereby affecting margins. To minimize the risk, a comprehensive and
integrated risk management framework is followed.
Cautionary Statement
Statements in this Management Discussion and Analysis contain
"Forward-Looking Statements" including, but without limitation, statements
relating to the implementation of strategic initiatives, and other statements relating to
future business developments and economic performance. While these forward-looking
statements indicate our assessment and future expectations concerning the development of
our business, several risks, uncertainties, and other unknown factors could cause actual
developments and results to differ materially from our expectations. These factors include
but are not limited to, general market, macroeconomic, governmental and regulatory trends,
movements in currency exchange and interest rates, competitive pressures, technological
developments, changes in the financial conditions of third parties dealing with us,
legislative developments, and other key factors that could affect our business and
financial performance. Mangalam undertakes no obligation to publicly revise any
forward-looking statements to reflect future/ likely events or circumstances.
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