Bombay Super Hybrid Seeds Ltd Management Discussions

Overview of the Indian Seed Industry

The Indian seed industry is one of the most dynamic segments within the agriculture sector, driven by innovation, public-private collaboration, and evolving regulatory frameworks. With increasing demand for high-yield, climate-resilient, early maturing and disease-tolerant crops, the seed sector has seen significant transformation across research, production, and distribution.

Seed Categories in India

1. Open-Pollinated Varieties (OPVs)

• Traditional seeds that farmers can reuse across seasons.

• Predominantly used by small and marginal farmers.

• Less cost-intensive but with relatively lower yield potential.

2. Hybrid Seeds

• Produced by crossing genetically diverse parent plants.

• Offer higher yields, uniformity, and better stress tolerance.

• Widely used in cereals, vegetables, and fruits.

3. Genetically Modified (GM) Seeds

• Currently limited to Bt cotton, which offers pest resistance.

• Introduction of other GM crops like Bt brinjal and GM mustard is under regulatory review.

• Governed by a strict biosafety framework.

Seed Sector Players

1. Public Sector

• Key institutions: ICAR, State Agricultural Universities.

• Focus on food security and staple crops.

• Plays a leading role in breeding and foundation seed production.

2. Private Sector

• Includes Indian and multinational seed firms.

• Dominates hybrid seed and biotechnology R&D.

• Rapidly expanding into digital seed marketing and exports.

Research & Development in Seeds Public Research

• Emphasis on agro-climatic adaptability, nutritional security, and traditional breeding.

• Supports national objectives like food self-sufficiency.

Private Research

• Focuses on advanced genetics, hybrid vigour, and trait enhancement (pest/drought resistance).

• International collaborations enable access to modern breeding tools and traits.

Seed Produc+on and Distribu+on Produc+on

• Conducted via contract farming under strict quality protocols.

• Ensures traceability and genetic purity across seed multiplication stages.

Distribu+on

• Handled through networks of dealers, retailers, and cooperatives.

• Public sector channels include NSC and State Seed Corporations.

• Growing digital presence through e-commerce and mobile applications.

Recent Developments in the Seed Industry

1. Biotech and GM Crops

• Due to increasing pest and disease, cotton (biotech) area is decreasing ge<ng replaced by oil seeds and pulses.

• Regulatory hesitancy around new GM crops due to biosafety and socio-political concerns.

2. Hybrid Seed Expansion

• Accelerated development in maize, rice, and vegetables.

• Private firms investing in climate-resilient and location-specific hybrids.

3. Digitaliza+on

• Use of mobile apps and e-commerce for seed selection and procurement.

• Precision farming tools aiding in better crop planning and yield forecasting.

4. Organic and Sustainable Seeds

• Rise in demand for non-GMO and organic seeds.

• New breeding programs focusing on ecological and sustainable farming.

5. Seed Certification

• Strengthened through laws like the Seed Control Order and NSC-led programs.

• Prevents counterfeit seeds and ensures quality assurance to farmers.

6. Export Growth

• Exports expanding to Asia, Africa, and Latin America.

• Need for compliance with international phytosanitary regulations.

7. Public-Private Partnerships

• Synergistic collaboration on hybrid and biotech research.

• Shared resources and knowledge lead to faster commercialization.

8. Startups and Innovation

• Emergence of agri-tech startups in seed enhancement, climate-smart crops, and micro-niche crops.

• Leveraging AI, genomics, and CRISPR for rapid innovation.

9. Government Initiatives

• NMEO, NFSM, NMOOP, and RKVY: Programs to boost seed production and availability particularly focused on edible old seeds and pulses.

• Funding infrastructure and research for national food security.

10. Industry Dynamism

• Influenced by policy, climate, consumer behavior, and global markets.

• Continuously adapting to emerging challenges and opportunities.

Fostering Innovation Through R&D

1. Strategic Objectives

• Goals: Yield improvement, climate resilience, disease resistance, nutrition enhancement, early maturity.

• Aligned with global and domestic agricultural priorities.

2. Collaborative Partnerships

• Engagement with ICAR, SAUs, CIMMYT, IRRI, ICRISAT.

• Involvement of farmers and industry stakeholders in R&D feedback loops.

3. Advanced Techniques

• Adoption of genomics, bioinformatics, and gene editing (CRISPR/Cas9).

• Data analytics and AI used for breeding optimization and field testing insights.

4. Germplasm and Trait Enhancement

• Global germplasm collection for broader genetic diversity.

• Focus on critical traits: drought resistance, salinity tolerance, nutrition enrichment.

5. Field Evaluation

• Multilocation trials under varied agro-climatic conditions.

• Performance metrics recorded and analyzed to refine breeding efforts.

6. Capacity Building

• Training programs for scientists, breeders, and extension workers.

• Knowledge dissemination through workshops and seminars.

7. IP and Commercialization

• Protection of innovations through patents and plant variety rights.

• Efficient technology transfer mechanisms to scale new varieties.

8. Impact Assessment

• Evaluation of R&D outcomes on yield, farmer income, and sustainability.

• Continuous improvement based on real-world feedback.

Key Crop Research Projects

Crop	Partners	Objective
Groundnut	SAU, IIGR (Junagadh), ICRISAT	Germplasm diversity, bio fortified and trait improvement
Rice	IRRI, PAU	Development of hybrid rice, basmati segment and impact acceleration
Maize	CIMMYT	Germplasm evaluation and value addition
Pearl Millet	ICRISAT, HarvestPlus	High-yielding and nutrient-rich line development
Coriander, Pea, Beetroot	Anseme SPA, Italy	Improved quality, adaptability, and yield
Vegetables	APSA, Metro Seeds (Thailand), Anhui Horti Seeds (China)	Collaborative vegetable breeding initiatives
Wheat	CIMMYT	High-yielding and resilient wheat lines for global regions

Strategic Infrastructure and Production

We operate with a forward-looking strategy that integrates infrastructure, technology, and skilled human resources:

• Processing Facility:

A modern 85,000 sq. F. seed processing unit at Kuchiyadad, Rajkot, ensures quality control and efficient throughput.

• Research Farm:

Our 25-acre farm at Kuchiyadad DSIR Approved, Rajkot, enables year-round breeding, evaluation, and seed multiplication under controlled conditions.

• Location Strategy:

Production areas are carefully chosen based on soil, climate, and access to experienced growers.

• Warehouse:

Own warehouse at Jaipur, Akola, Indoor and Ahmedabad

Material Developments in Human Resources / Industrial Relations Front, Including Number of People Employed.

Human resources play a pivotal role in the companys growth and success. The company is committed to developing the potential of each employee, balancing the experience of seasoned professionals with the mentoring of young talent. Upskilling the workforce with both digital and non-digital skills remain a priority, helping employees enhance their capabilities.

Recognizing that human capital is the companys greatest strength, efforts are made to create an encouraging, challenging work environment that rewards initiative and recognizes performance. The company maintains a positive industrial relations environment, ensuring a high level of employee satisfaction.

Financial Performance

Sales		In Lakhs)
Crop	2024-25	2023-2024
Groundnut Seeds	1,91,56,57,385	15,421.64
Gram Seeds	67,00,10,876	3,100.38
Rajka Seeds	12,36,65,930	908.29
Wheat Seeds	18,76,51,348	1,242.99
Soyabean Seeds	15,08,60,106	1,465.79
Cumin Seeds	15,65,04,293	1,708.04
Coriander Seed	5,38,47,478	405.11
Guar Seed	2,50,95,267	135.81
Mung Seed	6,17,62,046	379.10
Metha Seed	6,86,17,840	529.06
Tur Seed	7,58,08,911	28.90
Sales	In Lakhs)
Crop	2024-25	2023-2024
Udid Seed	3,42,07,680	116.21
Others	6,38,64,100	246.43
Total	3,58,75,53,260	25,687.76

Analysis:

• Overall Growth: There was a significant increase in total sales.

• Top Increase: The highest increase in sales was seen in Groundnut Seeds

ANALYSIS SIGNIFICANT RATIOS:

Name of Ratio	2024-25	2023-24	Variation	Reason for Variation
Current Ratio (Times)	1.83	1.87	-1.85	No explanation needed
Debt-Equity Ratio (Times)	0.88	0.61	43.49	Availed additional working capital limit
Debts Service Ratio (Times)	99.9	54.54	83.28	Availed additional working capital limit
Return on Equity Ratio (%)	251.63	211.71	18.86	No explanation required
Inventory Turnover Ratio (Days)	198.00	200.00	-1.00	No explanation needed
Trade Receivables Turnover Ratio, (Days)	7.00	14.00	-50.00	Due to increased turnover with prompt recovery.
Trade Payables Turnover Ratio, (Days)	12.00	13.00	-7.69	No explanation required
Net Capital Turnover Ratio (times)	0.27	0.28	-3.51	No explanation required
Net Profit Ratio (%)	7.36	8.65	-14.90	No explanation required
Return on Capital Employed (%)	25.22	28.38	-11.13
Return on Investment (%)	25.22	28.38	-11.13