Dhanlaxmi Crop Science Ltd Management Discussions

Global Economy:-

The global economy is navigating a phase of heightened uncertainty, with growth projections softening and macroeconomic pressures intensifying. The World Bank, in its June 2025 update, has revised its global GDP growth forecast for 2025 to 2.3%, significantly lower than its earlier estimate of 2.7%1. This adjustment reflects the weakest expansion since the 2008 financial crisis, excluding pandemic-related contractions. Notably, the deceleration is broad-based, with over 60% of emerging economies projected to register slower-than-expected growth, indicating a widespread economic slowdown1.

Inflationary pressures, while easing from prior highs, remain persistent. The World Bank estimates ggrosslobal inflation at approximately 2.9%, with core inflationin the U.S. (PCE) hovering around 2. price pressures continue to weigh on policy decisions1. In response, the U.S. Federal Reserve has maintained a cautious stance, holding interest rates steady while citing slowing GDP growth (around 1.4%), rising job losses, and inflation risks. The Fed has signalled potential rate cuts later in 2025, contingent on further signs of easing inflation2.

Trade dynamics have emerged as a renewed source of strain. A brewing tariff standoff between the U.S. and China has resulted in a sharp escalation of trade barriers, with average tariff rates rising from 2.5% pre-2017 to over 15% currently3. This protectionist environment has curtailed global trade flows and dampened investor sentiment.

According to the World Bank, resolving key trade disputes—such as halving existing tariff rates—could add an estimated 20 basis points to global GDP growth over the 2025 26 period3, , underscoring the economic potential of policy realignment.

Geopolitical instability, particularly in the Middle East, continues to exert pressure on global markets. Heightened tensions between Israel and Iran have led to increased volatility in energy prices, with Brent crude prices rising 18% since June 10, currently trading around $80 per barrel. Analysts suggest a potential spike to $100–130 should disruptions to oil supply chains materialize, which could further complicate the inflation trajectory and energy affordability across regions2.

The near-term global outlook remains fragile and uneven. While recession risks are currently contained, persistent inflation, tighter financialconditions, rising geopolitical risks, and elevated trade barriers continue to cloud the trajectory for global growth. The projected rebound for 2026 remains modest, with the World

Bank forecasting continued 2.3% growth if current dynamics persist1. Policy clarity on trade, measured monetary easing, and geopolitical de-escalation will be crucial for supporting macroeconomic stability and enabling a more sustainable recovery.

Sources:-

1. World Bank – Global Economic Prospects, June 2025 Press Release - https://www.worldbank.org/en/news/press-release/2025/06/10/global-economic-prospects-june-2025-press-release

2. Reuters – Middle East Tensions and Oil Market Risks- https://www.reuters.com/business/energy/middle-east-tensions-put-investors-alert-weighing-worst-case-scenarios-2025-06-21/

3. World Bank – Global Economic Prospects Overview - https://www.worldbank.org/en/publication/global-economic-prospects

4. World Bank Full Report PDF – Global Economic Prospects, June 2025- https://openknowledge.worldbank.org/ server/api/core/bitstreams/f983c12d-d43c-4e41-997e-252ec6b87dbd/content

Indian Economy

India continues to stand out as the worlds fastest-growing major economy, supported by resilient domestic demand, prudent macro-economic management and a focused push on capital expenditure and structural reforms. The International Monetary Fund (IMF), in its April 2025 update, projects Indias GDP to grow at 6.2% in 2025 and 6.3% in

2026, reinforcing its leadership among large economies1.

The World Bank, in its January 2025 Global Economic Prospects, echoes this optimism, forecasting a steady growth rate of 6.7% for FY26 and FY27, placing India well ahead of its global peers2. On the domestic front, the Reserve Bank of India (RBI) estimates real GDP growth at 6.5% for FY2025–26, with quarterly growth expected to range between 6.3% and 6.7%, citing a balanced risk outlook?.

As per the Ministry of Finances Macro-Economic Framework Statement, FY2024–25 witnessed real GDP growth of 6.4%, while nominal GDP growth reached 9.7%. The government expects nominal growth to improve to 10.1% in FY26, underpinned by improved revenue collections, stable inflation, and continued public investment .

Inflationhas remained under control, allowing monetary policy flexibility. The Harmonised Index of Consumer Prices (HICP) for April May 2025 stood at approximately 3.2%, well within the RBIs comfort band of 4% ? 2%. CPI inflation is projected at 3.7% for FY2025 26, though risks from global supply-side disruptions remain .

India continues to exhibit fiscal prudence while scaling up capital spending. In the FY2025 26 Budget, capital expenditure is pegged at Rs. 11.21 Lakh Crore, accounting for 3.1% of GDP. Simultaneously, the fiscal deficit target is thatunderlying narrowed to 4.4% of GDP, and the public debt-to-GDP ratio is expected to fall to 56.1%, reflectinga consolidated path to fiscal sustainability .

Even amidst global challenges, Indias outlook remains favourable. The World Bank, in its June 2025 Global Economic Prospects, maintains a GDP growth forecast of 6.3% for FY2025–26, while also cautioning against potential external shocks such as global trade disruptions and commodity price volatility .

Indias near- to medium-term outlook remains robust. With GDP growth forecast in the 6.3–6.7% range through FY2026–27, the economy is expected to continue outpacing global peers. A combination of strong macroeconomic fundamentals, a contained inflationary environment, and the governments commitment to infrastructure and fiscal reform supports this momentum. However, continued vigilance is essential, as global risks—including energy price shocks, trade tensions, and geopolitical instability—could test the countrys external resilience. Ensuring broad-based growth, sustaininginvestorconfidence,and pushing forward structural reforms will be key to unlocking Indias full growth potential.

1. IMF India Growth Estimates (April 2025) via PIB- https://static.pib.gov.in/WriteReadData/specificdocs/ documents/2025/jan/doc2025118487001.pdf

2. World Bank Global Economic Prospects – Jan 2025 (India section) via PIB- https://static.pib.gov.in/WriteReadData/ specificdocs/documents/2025/jan/doc2025118487001

3. RBI GDP Outlook FY2025–26 – PIB Press Note- https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154573

4. Macro-Economic Framework Statement – Ministry of Finance (2025–26 Budget) via PIB- https://www.pib.gov.in/ PressReleasePage.aspx?PRID=2098357

5. Retail Inflation, Capex, and Fiscal Deficit Highlights PIB Budget Release- https://www.pib.gov.in/

PressReleasePage.aspx?PRID=2098357

6. World Bank Global Economic Prospects – June 2025 (India highlights) via PIB- https://static.pib.gov.in/

WriteReadData/specificdocs/documents/2025/jan/doc2025118487001

Agricultural Industry

Indias agricultural sector is undergoing a fundamental transformation, driven by a combination of policy momentum, public investment, and strategic crop realignments. As a cornerstone of the economy—contributing around 18% to the Gross Value Added (GVA) and supporting over 40% of the population—the sector plays a pivotal role in Indias food security, rural employment, and macro-economic stability. Since 2013, agricultural budget allocations have increased five-fold, underscoring the governments long-term commitment to the sector1. The FY2025 26 Union

Budget continued this trend by raising total outlays for agriculture and allied sectors to Rs. 1.71 Lakh crore—a 15% increase over the previous year marking the biggest jump in six years2.

To reduce import dependency and strengthen domestic supply chains, the government launched two flagship initiatives in FY2025–26. First, a six-year pulses programme aims to guarantee minimum support price (MSP) procurement for crops like pigeon peas and red lentils, addressing a Rs. 5,000 crore import bill?. Second, renewed focus on cotton through enhanced R&D, input subsidies, and support infrastructure—including fertilizer plants—is intended to restore Indias competitiveness as a net exporter . These initiatives are a part of broader structural reforms that aim to align the cropping pattern with nutritional needs, water efficiency, and market demand.

In parallel, climate-smart agriculture has taken centre stage. A World Bank-supported programme is helping India scale adaptive practices using AI, remote sensing, weather data, and satellite mapping to enhance productivity while conserving natural resources . Recognizing the importance of stable input costs and farmer income, the government has also expanded its food and fertilizer subsidy commitments by 8% to Rs. 4.1 Lakh crore for FY2025–26—ensuring support for over 80 crore people through PDS and input affordability . Together, these measures are laying the ground work for a more resilient and future-ready agricultural ecosystem.

On the production front, the 2024–25 Kharif season saw record food grain output of 1,663.9 Lakh metric tonnes (LMT), with rice contributing 1,206.8 LMT, maize 248.1 LMT, and pulses 137.5 LMT. Oilseeds also performed strongly, with groundnut output at an all-time high of 104.3 LMT . States like Uttar Pradesh are leveraging World Bank-backed projects such as UP AGREES (Rs. 4,000 crore) to expand cultivation of maize and oilseeds while improving irrigation through farm ponds . Similarly, the Rabi season delivered solid gains, with food grain output reaching 1,645.3 LMT, including a record 1,154.3 LMT of wheat . These achievements were reinforced by MSPs that ensured farmers earned a minimum 50% return over production costs1 .

The crop economics is also shifting. Maize has become increasingly attractive to farmers due to its high returns (Rs. 2,500/quintal), lower water needs, and government-backed MSP of Rs. 2,225/quintal for 2024–25. In Uttar Pradesh, the state aims to double maize production by 202711. This reflects a broader trend of rebalancing crop portfolios toward high-value, climate-resilient varieties such as pulses, millets, and oilseeds. These changes are further supported by digital tools, farmer collectives, and post-harvest value chain infrastructure. Looking ahead, Indias agricultural growth trajectory appears promising. According to McKinsey, the Agri-GDP could rise from USD 580 billion in 2024 to USD 1 trillion in a base case—and up to USD 1.4 trillion in an aggressive case—by 2035. This transformation will be powered by 15–40% yield gains through better seeds, precision inputs, technology adoption, and processing infrastructure12. With sustained policy support, institutional capital, and digital innovation,

Indias agriculture is well positioned to evolve from a subsistence-based safety net into a market-linked growth engine—one that supports income growth, export potential, and climate adaptation at scale.

1. Reuters – Budget Growth Since 2013 – https://www.reuters.com/world/india/india-set-raise-farm-budget-by-over-15-biggest-increase-six-years-2025-01-23/

2. Reuters – FY26 Budget Push- https://www.reuters.com/world/india/india-set-raise-farm-budget-by-over-15-biggest-increase-six-years-2025-01-23/

3. Reuters – Pulses Programme - https://www.reuters.com/world/india/india-budget-india-unveils-long-term-programmes-boost-pulses-cotton-output-2025-02-01/

4. Reuters – Cotton Enhancement- https://www.reuters.com/world/india/india-budget-india-unveils-long-term-programmes-boost-pulses-cotton-output-2025-02-01/

5. World Bank – Climate-Smart Agriculture- https://live.worldbank.org/en/event/2024/annual-meetings-agriculture-food-system-growth-job-creation

6. Reuters – Subsidy Expansion- https://www.reuters.com/world/india/indias-budget-likely-raise-major-subsidies-by-8-47-bln-next-fiscal-2025-01-22/

7. PIB – Kharif Output- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2109884&utm

8. Business Standard – UP AGREES Project- https://www.business-standard.com/india-news/uttar-pradesh-eyes-12-percent-rise-in-kharif-crop-output-in-2025-125051500580_1.html

9. PIB – Rabi Output- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2109884

10. The Hindu – MSP Assurance- https://www.thehindu.com/business/agri-business/msps-for-kharif-and-rabi-crops-ensured-minimum-return-of-50-over-cost-of-production-in-2023-24-rbi/article68231562.ece

11. TOI Maize Cultivation Trends- https://timesofindia.indiatimes.com/city/lucknow/maize-cultivation-increasingly-becoming-the-preferred-crop-of-many-farmers/articleshow/121916946.cms 12. McKinsey – Value Creation in Indian Agriculture- https://www.mckinsey.com/industries/agriculture/our-insights/ value-creation-in-indian-agriculture

Seed Industry

Indias seed industry in FY25 is at a pivotal juncture,drivenbysignificantpolicy push, public R&D output, and strategic infrastructure support. Already among the top five global seed markets by value and volume, India is also the second-largest producer of agricultural seeds in Asia after China. With a vast agro-climatic diversity and one of the highest cropped areas globally, India plays a crucial role in supplying seeds not only for domestic use but also for growing export markets in Asia, Africa, and Latin America. The Union Budget 2024–25 marked a landmark move with the launch of the National Mission on High-Yielding Seeds, aimed at developing and distributing over 100 new seed varieties tailored to regional and climatic needs. This mission intends to strengthen the seed ecosystem through targeted funding for public and private research institutions, and by building robust linkages between seed producers and farmer groups a critical step towards enhancing yield potential and resilience in agriculture1.

To complement varietal improvement, the government has implemented notable MSP (Minimum Support Price) increases for both Kharif and Rabi crops in FY25, particularly in oilseeds and pulses, which are key targets for seed modernization. For instance, groundnut MSP was raised by 527/quintal, and mustard by 300/quintal, alongside hikes in crops like bajra, ragi, masur, and gram. These measures not only improvefarmprofitabilitybut also act as an incentive for farmers to adopt higher-quality seed varieties2 3.

Supporting this transformation is the Sub-Mission on Seeds and Planting Material (SMSP), which has made significant progress over the past decade. The program has enabled the creation of over 6.85 lakh seed villages and facilitated the production of 1,649 lakh quintals of quality seed across cereals, pulses, and oilseeds. This momentum continues in FY25, under the new seed mission, to scale up seed replacement rates and improve access in underserved regions .

On the R&D front, the Indian Council of Agricultural Research (ICAR) released 109 new seed varieties in FY24, directly supporting the seed pipeline for the 2024–25 cropping seasons. These include high yielding, disease-resistant, and climate-resilient varieties across major crops such as rice, wheat, maize, pulses, and horticulture, strengthening adaptability across Indias diverse agro-climatic zones .

To reduce dependence on edible oil imports, the government is actively promoting oilseed expansion through seed-based interventions. These include support for intercropping, promotion of high-yielding varieties, and cultivation in rice fallow areas, combined with financial and input for certified seeds in crops like mustard, sunflower, and soybean .

In line with Indias leadership in millet cultivation, the government has scaled up investment in coarse grain seed systems. Under the ICAR millet initiative, 25 seed hubs have been established to distribute certified seed varieties of bajra, ragi, jowar, and related crops. These hubs also provide training, trials, and research support to improve millet productivity and resilience .

Further, the government is bolstering the seed supply chain under the Agriculture Infrastructure Fund (AIF). As of FY25, over Rs. 52,738 crore has been sanctioned across 87,500+ projects, with many focused on seed storage, processing units, and cold chain logistics. This enhances seed quality preservation and broadens availability across regions .

With strong government commitment across policy, pricing, research, and infrastructure, the Indian seed industry is poised for an accelerated growth trajectory in FY25. Indias position as a global seed hub is being reinforced by investments in varietal innovation, climate resilience, and modern storage infrastructure. Rising seed replacement rates, increasing export potential, and deeper private-public sector collaboration are likely to drive Indias transition from a seed self-sufficient nation to a seed innovation and supply powerhouse for emerging markets.

1. National Mission on High-Yielding Seeds- https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2098353

2. MSP – Kharif FY25- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2131983

3. MSP – Rabi FY25- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2065310

4. SMSP & Seed Village Program- https://www.pib.gov.in/PressNoteDetails. aspx?ModuleId=3&NoteId=154580&id=154580

5. CAR – 109 Seed Varieties Released- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2035618

6. Oilseed Promotion and Seed Policy- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2090993

7. Millet Seed Hubs & R&D- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098424

8. Agriculture Infrastructure Fund- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098424

Cotton Industry

Indias cotton sector, a cornerstone of the rural economy and the textile industry, is undergoing a strategic transformation to address longstanding productivity gaps while strengthening its global position. India continues to lead the world in cotton acreage, accounting for the largest area under cultivation and nearly 24% of global cotton production1. Despite this scale, India ranks only 36th globally in terms of yield per hectare, which has drawn attention to the need for focused reforms to improve output efficiency2.

Recognizing this, the Government of India has launched a major intervention: yearCotton Productivityfive-

Enhancement Mission, with a budgetary allocation of Rs. 5,272 crore?. The mission targets yield improvement, especially for Extra Long Staple (ELS) varieties, by promoting High-Density Planting Systems (HDPS), improved mechanization, integrated pest management, and deployment of compact BT-cotton hybrids . These agronomic upgrades aim to bring Indias average productivity closer to global levels while ensuring better returns for farmers. To enhance Indias image in global cotton trade, the government has also rolled out the Kasturi Cotton Bharat initiative, which serves as a premium branding campaign for Indian cotton. Through this, the government is ensuring standardized ginning, contamination control, and QR-code based traceability to elevate Indias cotton quality to international benchmarks . This brand identity will help differentiate Indian cotton in global markets and increase export competitiveness. At the grassroots level, the governments procurement operations have been robust. In FY2024–25 (up to December), the Cotton Corporation of India (CCI) procured 42 lakh bales valued at 16,215 crore, directly benefiting over 7.75 lakh farmers . The procurement process has been digitized and made transparent through Aadhaar authentication, SMS-based updates, and NACH-based direct bank transfers, ensuring fair price realization at the farmer level. Additionally, the Cotton Advisory Board (CAB) and the Committee on Cotton Production and Consumption (COCPC) have indicated that the domestic cotton supply is stable, with no major concerns on availability for the textile sector , . This balance ensures that Indias textile value chain spanning spinning, weaving, and garments—can plan production without facing raw material bottlenecks.

Overall, is expected to significantly enhance theIndias cotton sector is now backed demand by multi-pronged policy framework—spanning productivity enhancement, quality assurance, farmer support, and global market positioning. These initiatives are expected to not only raise farmer incomes and reduce yield gaps but also to position India as a globally trusted source of high-quality cotton, catering to both domestic and export markets.

1. Indias cotton acreage and global share- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2089306

2. Low productivity and need for yield improvement- https://www.pib.gov.in/PressReleaseIframePage. aspx?PRID=2114545

3. BudgetallocationforCottonProductivityMission-https://www.pib.gov.in/PressReleasePage.aspx?PRID=2099411

4. Mission rollout and strategy- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2113351

5. Kasturi Cotton Bharat branding initiative- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2089306

6. QR-code traceability system and branding- https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2114545

7. CCI procurement update FY25- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2089306

8. CAB review on cotton supply- https://www.pib.gov.in/PressReleasePage.aspx?PRID=1815947

9. COCPC sector roadmap- https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2114545

Company Overview in FY25, Dhanlaxmi Crop Science Limiteds core crop portfolio—comprising cotton, maize, bajra, wheat, gram, vegetables, and other field crops continued to demonstrate resilience and strategic depth amid industry challenges. While cotton faced sectorial headwinds, it remained a key revenue contributor. Maize posted impressive growth of 31% in value, respectively. The companys Non-Cotton segment now accounts for nearly 12% of the revenue, reinforcing Dhanlaxmi Crop Science Limiteds successful diversification strategy and its ability to adapt to evolving agronomic and market demands.

Dhanlaxmi Crop Science Limited operates at the confluence of rising food and nutritional security imperatives in

India, playing a critical role in enabling the nations transition to sustainable, high-yield agriculture. With over two decades of experience, the company has developed a robust ecosystem encompassing R&D, farmer engagement, and seed innovation. Its offerings, particularly in cotton, have shown strong performance in ICAR trials, aligning well with the governments push for climate-resilient and productivity-enhancing agriculture under various national missions.

Segment	Key Products	Product Pipeline	Key Geographies
Cotton	ZCH-545	--	Central Zone, South Zone,
	ZCH-547	--	in India
Pearl Millet	14D88,14D99	--	Central and north zone
Mustard	41D46, 23D23	--	Central and north zone
Maize	32D12 ,32D55	Legend	Central Zone, South Zone, In India
Wheat	46D44,46D46,sarvottam	Mahashakti	Central Zone, North Zone, In India
Gram	Phule Vikram, phulevikrant 33D61 , Phoenix Bhimashakti	--
Cumin		--
Vegetable		--

Cotton Segment:- Dhanlaxmi Crop Science Limited has strategically positioned itself within this crucial agri-sector. In FY25, the cotton segment witnessed headwinds due to Kharif 2024 uncertainty and market disruptions caused by illegal HTBT seed distribution. Despite this, the company maintained 114 Crore sales from cotton, aided by hybrid offerings like ZCH-545 & ZCH 547and continued farmer awareness campaigns.

The cotton industry continues to face structural challenges, notably the unauthorized proliferation of herbicide-tolerant BT (HTBT) cotton, which has not been approved by regulatory authorities. Farmers are attracted to HTBT due to reduced weeding costs and convenience, but the unregulated spread of these seeds poses serious risks, including environmental contamination, loss of trait purity, and erosion of trust in certified seed systems. Dhanlaxmi Crop

Science Limited has actively collaborated with industry bodies and policymakers to address the issue, reinforcing the importance of regulatory enforcement and legitimate BT cotton adoption. Additionally, the company has emphasized education on the implications of illegal seeds, supporting efforts to restore market discipline.

Product Pipeline and Innovation Dhanlaxmi Crop Science Limited is currently developing next-generation cotton hybrids designed for higher yields, enhanced pest resistance (particularly against pink bollworm and sucking pests), and adaptability across varied agro-climatic zones. Key traits include medium-to-large boll size, wider adaptability, ease of harvesting, and yield superiority. These innovations are expected to strengthen the companys leadership in the cotton segment over the coming years, especially as policy shifts begin to favour robust quality control and certified seed use.

Others the ‘Others segment, which includes maize, mustard, bajra, gram, and wheat etc., saw strong operational gains. In FY25, maize posted a robust 31% YoY growth, while wheat increased 39.65%. The NC (Non-Cotton) portfolio

Decreased from 23.37% to 11.78% of revenue, reflecting the companys diversification focus.

Financial Overview in FY25, Dhanlaxmi Crop Science Limited recorded total revenue of Rs. 12,930 Lakhs, marking a 102.95% growth as comparedtolastyear.Grossprofitrose 16.13% Compared to last year to Rs. 1172.87 Lakhs.

EBITDA stood at 1237.40 Lakhs, though the EBITDA margin moderated slightly high as compare to last year. PAT

(excluding extra-ordinary items) grew 85.53% i.e. of Rs. 867.97 Lakhs as compared to last year. Notably,profitsfrom core business operations improved,reflectingoperationalefficiency despite external headwinds in cotton. With healthy operating cash flows, stable finance costs, and tight receivable control, the company exited FY25 resilient financial profile.

Company Outlook Looking forward, Dhanlaxmi Crop Science Limited is sharpening its focus on high-margin and high-growth segments—particularly vegetables, maize, and hybrid paddy—while maintaining strength in its cotton leadership through innovation and advocacy. FY26 will emphasize scaling its R&D capabilities, while exploring further opportunities to expand national sales. With robust fundamentals, sustained product innovation, and a strategically diversified portfolio, the company is well-positioned to capitalize on rising global and domestic demand for resilient seed solutions.

Infrastructure Operating modern processing units, Dhanlaxmi Crop Science Limited minimizes capex while maintaining operational flexibility. Seed processing capabilities across multiple states enhance geographic resilience.

Rigorous quality assurance protocols, including ELISA-based genetic purity tests and ISTA-compliant testing, ensure seed viability and safety—a corner stone in Indias seed quality regulation framework.

Research and Development with 16.5 acres dedicated to R&D, the company contributes significantly to Indias agricultural innovation agenda. Its investments in trait-specific germ plasm and biotic/abiotic stress-resilient hybrids support national priorities on climate adaptation and farm productivity.

Seed Production With seed production across more than 3000 acres and support from over 1000 growers, Dhanlaxmi Crop Science Limited has built a scalable, climate-resilient supply base. The companys production model aligns with the governments goal of strengthening domestic seed production to reduce reliance on imports.

Elaborate Seed Processing Facilities Modern equipment and stringent quality protocols ensure top tier seed output, supporting Indias quality certification and traceability standards. The companys decentralized presence enables faster distribution and ensures seed viability across regions.

Network Diversified with a distribution footprint across 5 States and 1100+distributors, Dhanlaxmi Crop Science Limited is positioned to deliver resilient supply chains. National expansion into India to be a well-known seeds supplier.

Risk	Impact	Mitigation
Regulatory Risk	Increased domestic as well as foreign competition in the seeds space can result in the tightening of regulatory norms posing a risk to the operations of the Company.	The Company has a dedicated Compliance and R&D team to stay updated on international standards on GM and/or Hybrid seeds. These dedicated teams in collaboration with middle management and technology teams help the Company mitigate any risk arising from policy changes.
Technology Risk	Increased usage of the same technology on the soil can render soil, pathogens, and pests resistant to its beneficial effects.	The Companys R&D infrastructure is focused on innovating and inventing newer technologies to avoid reliance on only one type of technology. The Company aims to produce seeds with high yields and endurance to several pests and viruses.
Unpredictable Weather	Weather plays a key role in the production of food grains, pulses, vegetables, etc. Any adverse climatic conditions can negatively impact the production and maintenance of crops & fields.	The Company attempts to minimize the effects of these natural calamities by taking proactive and quick action by creating seeds that can be cultivated in situations, such as drought, heat waves, etc.
Cotton Business	There are multiple risks associated with the cotton business such as the increased proliferation of illegal seeds which are herbicide tolerant in cotton growing states to meet the customized product–based demand.	The companyhasadiversifiedproduct profile and focuses on ‘All season products. The company seeks to increase segment growth in the vegetable and plant nutrient markets.

Human Resources The Companys 72 member team is supported by ongoing training, collaborations with well-known institutions and structured HR policies. This reflects Indias national emphasis on agri skilling and capacity building in the rural sector.

Internal Control Systems Robust audit systems, regulatory compliance, and operational integrity safeguard Dhanlaxmi Crop Science Limited in a sector increasingly subject to digital, ESG, and biosafety norms. The companys audit committee ensures readiness for future regulatory shifts.

Cautionary Statement Statements in the Management Discussion and Analysis describing the Companys objectives, projections, expectations and estimates regarding future performance may be "forward-looking statements" and are based on the currently available information. The management believes these to be true to the best of its knowledge at the time of preparation of this report. However, these statements are subject to certain future events & uncertainties, which could cause actual results to differ materially from those, which may be indicated in such statements.

On behalf of the Board of Directors,

For, DHANLAXMI CROP SCIENCE LIMITED

 

Sd/-	Sd/-
Kamleshkumar J. Patel	Alpeshkumar J. Patel
Chairman & Managing Director	Jt. Managing Director
(DIN: 02500717)	(DIN: 00023541)

 

Date : 25/08/2025

Place : Himatnagar