kaveri seed company ltd share price Management discussions

Indian economic overview

The Indian economy has exhibited remarkable resilience in overcoming challenges during FY 2023. An analysis of various sectors indicates that the predominant growth has been driven by strong domestic demand and increased construction activity, facilitated by substantial infrastructure investments from both the central and state governments. These investments have stimulated economic growth and created numerous employment opportunities.

While still in the early stages of recovery, there are promising signs that private investment may rise in the post-pandemic period, particularly in the manufacturing and services sectors. The manufacturing sector, in particular, has witnessed a gradual increase in private investment, indicating a favourable investment cycle.

The Reserve Bank of India (RBI) reports that retail inflation in India declined below 6% in March 2023, leading to a certain degree of stability in commodity prices.¹ This, coupled with a resurgence in consumer demand, can be attributed to the governments implementation of favourable policies that help mitigate risks to the Indian economy.

A range of high-frequency indicators, such as GST collections, railway and air traffic growth, electronic toll collections and E-Way bill volumes, all point to a robust economic recovery. Moreover, Indias consistent growth momentum has bolstered confidence and created a conducive environment for attracting investments. India is projected to be the fastest-growing economy among the G-20 nations in the coming years. Moreover, Indias leadership of the G20 Summit in 2023 presents a significant opportunity to foster global coordination for economic stability and prosperity.

With measures in place to curb inflation, manage the depreciation of the Indian currency and mitigate the immediate effects of the fiscal deficit on the economy, there is an expectation of substantial improvement in business prospects. This, combined with a favourable policy environment and reduced risks that could adversely impact the economy, is anticipated to enhance consumer confidence, offering some relief to the Indian economy.

Industry overview

Indian agricultural industry

Indias agricultural sector has experienced substantial progress, exhibiting an average annual growth rate of 4.6% over the past six years. It represents 18.3% of Indias Gross Value Added (GVA) at current prices for FY 2022-23.² This commendable performance has played a pivotal role in fostering the nations overall advancement and development and ensuring food security. Additionally, India has recently emerged as a net exporter of agricultural commodities, achieving an export value of USD 40.37 billion from April 2022 to January 2023.³

(Source- https://www.pib.gov.in/PressReleasePage. aspx?PRID=1909213 )

The Government has implemented a policy of progressively raising the Minimum Support Price (MSP) for all 22 Kharif, Rabi and other commercial crops. The MSP is set at a minimum of 50% above the all-India weighted average cost of production, starting from the agricultural year 2018-19. Notably, higher MSPs have been allocated to pulses and oilseeds to align with evolving dietary preferences and foster self-sufficiency in their production. ⁴

Food production

The agricultural sector in India has witnessed significant growth in the production of major crops, including rice, wheat, maize, cereals and lentils. The estimated food grain production is projected to reach 3305.34 lakh tonnes in FY23.⁵ Additionally, the United Nations has designated the year 2023 as the International Year of Millets. This substantial surge in agricultural output contributes to enhancing food security and plays a vital role in supporting the economic stability and prosperity of farmers.

The augmentation in the production of coarse grains underscores the significance of promoting nutrient-rich grains within the nation. Supported by the farmer-friendly policies of the Government and the efforts of farmers and scientists, the agricultural sector in India is poised for sustained advancement and further expansion in the upcoming years.

These estimations serve as a pivotal gauge of the progress and potential of Indias agricultural industry, accentuating the countrys commitment towards attaining self-reliance in agricultural production and the goal of doubling farmers income.

Improved access to agricultural credit

The Government has established a goal of achieving agricultural credit flows amounting to H 18.5 lakh crore in FY 2022-23. Demonstrating a consistent pattern, the Government has consistently raised this target annually and has successfully surpassed the set target for several consecutive years. Notably, in FY 2021-22, the actual credit flow exceeded the target of H 16.5 lakh crore by approximately 13%.

This accomplishment was facilitated by the Governments implementation of various initiatives aimed at facilitating convenient access to credit for farmers at competitive interest rates. Noteworthy, among these initiatives are the Kisan Credit Card (KCC) Scheme, which enables farmers to obtain credit at any time and the Modified Interest Subvention Scheme, which offers subsidised interest rates on short-term agricultural loans of up to H 3 lakh.

As of December 2022, Kisan Credit Cards have been issued to approximately 3.89 crore eligible farmers, amounting to a total KCC limit of H 4,51,672 crore. Moreover, in FY 2018-19, the Government of India extended the KCC facility to include farmers in the fisheries and animal husbandry sectors. As of October 17, 2022, over 1.0 lakh KCCs had been sanctioned for the fisheries sector, while for the animal husbandry sector, the number stood at 9.5 lakh as of November 4, 2022. ⁶

Organic and natural farming

India has the highest count of organic farmers globally, standing at 44.3 lakh. Also, an impressive 59.1 lakh hectares of land have been dedicated to organic farming as of FY 2021-22. The adoption of organic and natural farming practices ensures the production of food grains and crops free from chemical and pesticide residues. Additionally, it contributes to the enhancement of soil health and the mitigation of pollution.

The Government has facilitated the advancement of organic farming through the implementation of two dedicated schemes, namely the Paramparagat Krishi Vikas Yojana (PKVY) and the Mission Organic Value Chain Development for Northeastern Region (MOVCDNER). These schemes primarily focus on the establishment of clusters and the formation of Farmer Producer Organisations (FPOs) to promote organic farming practices. As of November 2022, PKVY has successfully encompassed 32,384 clusters, covering a total area of 6.4 lakh hectares, benefiting 16.1 lakh farmers. Similarly, under MOVCDNER, 177 FPOs/FPCs have been established, benefiting 1.5 lakh farmers and facilitating organic farming of niche crops across 1.7 lakh hectares in the Northeast Region.

Under the initiative known as Bhartiya Prakratik Krishi Paddhati (BPKP), a programme has been implemented to facilitate the adoption of diverse traditional and ecological farming practices, notably Zero-Budget Natural Farming (ZBNF). As a result of this scheme, a total of 4.09 lakh hectares of agricultural land have been successfully transitioned to natural farming across eight states. ⁷

Government initiatives

Policies such as the implementation of Soil Health Cards, the establishment of the Micro Irrigation Fund and the promotion of organic and natural farming practices have proven effective in assisting farmers in optimising their use of resources and reducing cultivation costs. Additionally, the encouragement of Farmer Producer Organisations (FPOs) and the implementation of the National Agriculture Market (e-NAM) extension platform have empowered farmers, bolstered their resources and yielded favourable returns on their investments.

Moreover, the Agri Infrastructure Fund (AIF) has provided support for the establishment of diverse agricultural infrastructure. The introduction of the Kisan Rail, a dedicated transportation service for perishable agri-horticultural commodities, has catered exclusively to the transportation needs of such goods. The Cluster Development Programme (CDP) has successfully encouraged the integrated and market-oriented growth of horticulture clusters. Also, efforts have been made to foster a start-up ecosystem in agriculture and allied sectors by providing support and resources to farmers. These collective measures aim to bolster agricultural productivity, ensuring its sustained contribution to overall economic growth in the medium term.

PM KISAN Scheme

In the April-July 2022-23 cycle of PM KISAN, a total of 11.3 crore farmers received income support from the Government. Over the course of the past three years, the scheme has provided assistance amounting to more than H 2 lakh crore to farmers in need. As per an empirical study carried out by the Indian Council of Agriculture Research (ICAR) and the International Food Policy Research Institute (IFPRI), the PM KISAN scheme has successfully mitigated the liquidity constraints experienced by farmers when acquiring agricultural inputs. Additionally, it has specifically assisted small and marginal farmers in fulfilling their requirements for daily consumption, education, healthcare and other miscellaneous expenses.

Pradhan Mantri Fasal Bima Yojana

The current crop insurance scheme holds the distinction of being the largest in the world in terms of farmer enrolments, with an average of 5.5 crore applications received annually. Additionally, it ranks as the third largest in terms of premium received. Over the past six years of its implementation, farmers have collectively contributed a premium amounting to H 25,186 crore, while claims totalling H 1.2 lakh crore (as of October 31, 2022) have been disbursed. The schemes popularity among farmers is evident in the significant increase of 282% in the participation of non-loanee, marginalised and small-scale farmers since its establishment in 2016.

Technological trends in agriculture

Drone technology

Drones have been employed within the agricultural sector to enhance crop growth, maintenance and cultivation techniques. These are used for assessing crop conditions and implementing improved fertilisation strategies to increase yields. Additionally, the availability of hovering robots assists farmers in surveying expansive areas and collecting data to derive enhanced insights about their farms. The integration of drones in agriculture has resulted in more frequent and cost-effective remote monitoring of crops and livestock, facilitating the analysis of field conditions and the identification of suitable interventions such as fertilisers, nutrients and pesticides.

Ariel imaging

Aerial imaging entails the utilisation of geographic information system (GIS) technology for evaluating the feasibility of irrigation projects and their implications on land degradation, erosion and drainage. The imagery produced by this technology facilitates the examination of individual plant foliage, enabling the detection of pests and diseases to safeguard crops against environmental hazards. Primarily employed for monitoring soil conditions on farms, aerial imaging proves particularly beneficial during the summer season when water availability is limited.

Use of IoT

The agricultural sector leverages Internet of Things (IoT) technology by deploying a range of sensors within farms. These sensors are instrumental in monitoring crucial parameters such as light intensity, humidity, soil moisture, temperature and crop health. They facilitate data collection for comprehensive analysis of farm performance. Moreover, IoT-based tools are employed to forecast rainfall, temperature, soil conditions, humidity and other potentially disruptive natural phenomena. This interconnected system enhances the ability to make informed decisions and implement timely interventions in agricultural operations.

Indian seed industry

The seed industry in India reached a size of USD 6.3 billion in 2022 and it is projected to reach USD 12.7 billion by 2028, reflecting a compound annual growth rate (CAGR) of 12.43% during the period from 2023 to 2028.⁸ This growth can be attributed to several key factors. Indias growing population and the presence of fertile arable lands across diverse agro-climatic zones have a positive impact on the market. Moreover, the commercialisation of agriculture and the active collaboration between the private and public sectors are driving the expansion of the seed industry in the country.

Moreover, prominent seed breeders are increasingly integrating advanced digital technologies to assist farmers in mitigating the adverse effects of pests, climate fluctuations, and other environmental factors, thereby contributing to overall market growth. Additionally, the agricultural sector is witnessing the incorporation of data science, artificial intelligence (AI) tools, advanced phenomics, and genomics, which present promising prospects for the seed industry. The Government of India (GoI) plays a crucial role by offering various opportunities to encourage farmers and breeders, as exemplified by programmes like the Integrated Scheme for Oilseeds, Pulses, Oil Palm, and Maize (ISOPOM) and the Rashtriya Krishi Vikas Yojana. These initiatives provide consistent support and lucrative growth avenues for farmers and seed breeders alike.

Additionally, research institutes are making increased investments in research and development (R&D) activities focused on enhancing crop production, supply chain management, and quality assurance. These efforts are expected to further propel the seed industry in India.

Outlook

The competition in crop production, particularly concerning value-added traits, is expected to intensify. This trend is driven by the need to address climate change and shifts, which contribute to the increasing complexity of diseases and their impact on the durability of agricultural products. To meet these challenges, there is a growing emphasis on fast-track breeding using new genetic technologies.

The expansion of protected and organic cultivation, along with specialised products, is anticipated. Additionally, there is an increasing focus on seed enhancement technologies, which involve the utilisation of counted seeds of high value. This shift is driven by the rising demand from professional vegetable growers, who require high-performing seeds.

Another significant development is the consolidation of vegetable seed companies. Multinational corporations (MNCs) are expected to invest more in breeding and technologies to gain a competitive edge in the market. Also, it is projected that the majority of crops will undergo more than 80% hybridisation.

Over the course of ten years, the vegetable seed market is forecast to grow by 50%. This growth is likely to be accompanied by an increase in the area dedicated to vegetable cultivation, estimated to rise from 9.8 million hectares to 12 million hectares. This expansion is driven by rising demand and market trends.

To keep pace with the evolving industry, a more sustainable seed business model is necessary, characterised by robust systems, processes, and well-defined business plans, as adopted by many MNCs. Additionally, the export of vegetable seeds is witnessing an increasing trend, indicating potential opportunities for market expansion and international trade.

Company overview

Established in 1976 in Telangana, Kaveri Seeds was founded with the noble objective of bolstering the Green Revolution in India by enhancing the countrys crop production. As a prominent player in the agricultural sector, the company specialises in the development and distribution of hybrid seeds for key Indian crops. Its commitment to innovation and research is highly regarded by the Government of India (GoI), thus enabling the Company to continuously evolve and introduce new products tailored to different seed segments, including cotton and non-cotton crops.

Supported by an extensive and proficient research and development (R&D) team,

Kaveri Seeds has successfully created a comprehensive network that spans various agro climatic and soil conditions. This robust R&D infrastructure has facilitated the development of superior products for diverse agricultural regions, covering approximately 1000 acres of land across 11 distinct agro-climatic zones. The Companys R&D endeavours are strengthened by the expertise of over 165 highly qualified scientists who employ cutting-edge biotechnological approaches to enhance crop yields and produce innovative hybrid seeds.

Kaveri Seeds has an extensive product portfolio encompassing a wide range of high-yielding seeds for field crops such as maize, cotton, rice, pearl millet, mustard, wheat, sorghum, sunflower, and various vegetable crops. With a strong local presence, the Company has also experienced remarkable growth in the international market, successfully exporting its products to countries such as Pakistan, Sri Lanka, Bangladesh and Vietnam.

To ensure optimal customer satisfaction, Kaveri Seeds maintains a diligent on-the-ground team consisting of dealers and field workers who actively engage with clients. This constant interaction facilitates the dissemination of cutting-edge agricultural technologies and ensures that farmers reap the benefits of high-yielding seeds. Through these efforts, Kaveri Seeds endeavours to contribute to the progress and advancement of the Indian agricultural sector while playing a pivotal role in supporting the nations food security and overall economic development.

Operational highlights

In-house R&D

Demonstrating remarkable agility, the Company has successfully introduced numerous new seed variants across various seed segments, driven by its robust and proactive research and development (R&D) approach. In recent years, the Company has intensified its focus on R&D, recognising its pivotal role in driving innovation and growth. In line with this commitment, the Company is currently in the process of establishing a state-of-the-art R&D biotechnology plant. The projected capital expenditure (capex) for this venture is expected to range from H 25 crore to H 30 crore on a year-on-year basis. By investing significantly in R&D, the Company aims to enhance its research capabilities and propel the development of cutting-edge seed solutions, ultimately contributing to the advancement of the agricultural sector and the Companys sustainable growth.

The Company has implemented standardised breeding processes for various crops, which have helped acquire germplasm with disease and pest tolerance as well as stable yields. Multiple breeding locations are utilised to identify tolerant lines, resulting in the development of superior hybrids that can withstand diverse conditions. Leveraging cutting-edge technologies, the Company creates value-added products to achieve cost reduction and quality enhancement. Genetic enhancement efforts focus on introducing elite recombinants and new products. Field-level disease and insect screening hot spots have been established and new protocols have been devised to identify the best products for specific targeted areas. To ensure comprehensive product evaluations, the Company has expanded its testing locations.

Infrastructure facilities

With an extensive infrastructure in place, the Company has a wide-ranging operational setup to support its seed production and distribution activities. The Company currently operates over 122 outreach trial centres, strategically located to facilitate effective research and testing of its products. Additionally, the Company possesses a state-of-the-art maize cob drying facility capable of generating a substantial output of 4556 metric tonnes in each production cycle.

To ensure efficient seed processing, the Company maintains seed production facilities with an impressive average throughput of 134 per hour. Moreover, the Company possesses a dedicated cotton de-linting capacity of 15 metric tonnes per day, demonstrating its commitment to meeting the demand for high-quality cotton seeds. In addition to this, the Companys daily ginning capacity reaches a notable 5 MT, further solidifying its position as a reliable supplier in the cotton industry.

Recognising the significance of streamlined storage and distribution, the Company has strategically established 10 lakhs square feet of warehouse space in key locations throughout India. This extensive warehousing infrastructure allows for efficient inventory management and timely product delivery to customers. Also, the Company has a substantial cold storage capacity of 31348 metric tonnes], ensuring the preservation and quality of perishable seed products.

To effectively reach end customers, the Company has developed a well-structured network comprising 60,000 retailer client touch points spanning across 20+ major Indian states. This widespread network serves as a robust distribution channel, facilitating the seamless delivery of the Companys products to customers in various regions. Through these comprehensive operational capabilities, the Company strives to ensure the availability and accessibility of its high-quality seeds to farmers nationwide, supporting Indias agricultural sector and contributing to the countrys food security goals.

Growing market presence

The Company has successfully elevated agricultural yields and earned the unwavering trust of farmers and distributors through its firm dedication to seed innovation. The Companys exceptional BT cotton hybrids, maize hybrids, rice hybrids and selection rice varieties have emerged as frontrunners in the Indian seed market, underscoring the Companys prominence and leadership in the industry.

The Company has established a specialised ‘grower network comprising 65000 farmers strategically located across the 29 product locations in distinct agro-climatic zones of India to ensure widespread adoption and optimal cultivation practices. This extensive network allows the Company to closely engage with farmers, providing them with valuable guidance and support to maximise their agricultural output. By fostering strong relationships with farmers and actively addressing their needs, the Company strives to foster a mutually beneficial partnership that drives sustainable growth in the agricultural sector.

With a clear focus on research and development, the Company consistently introduces innovative seed varieties that cater to the evolving demands of farmers and align with the prevailing market trends. By delivering quality seeds that enhance crop productivity and adaptability, the Company continues to reinforce its position as a trusted and preferred partner among farmers and distributors.

Enhanced product range

The Company presents an extensive and diverse product range encompassing high-yielding seeds in both the field crops and vegetable segments, with a strong focus on meeting the varied needs of farmers. In the field crops category, the Company offers a wide selection of hybrid and variety seeds tailored for maize, rice, cotton, sunflower, mustard, sorghum, legumes, bajra and wheat. Moreover, in the vegetable segment, the Company provides farmers with an array of options, including tomatoes, okra, chillies, watermelon, gourds and brinjal. By offering such a comprehensive range of seeds across multiple crop categories, the Company aims to address the diverse requirements of farmers, enabling them to maximise their yields and promote sustainable agricultural practices.

	Strengths
	The Company maintains a formidable emphasis on research and development, allocating substantial investments towards the advancement of high-yielding hybrid seeds. These seeds are meticulously customised to suit precise climatic conditions and
Research and Development	fulfil the requirements of farmers. By placing significant emphasis on its research and development endeavours, the Company consistently fosters innovation and enhances its seed varieties, ensuring a continuous cycle of improvement.
	Strengths
Product portfolio	The Company has a diverse and expansive product portfolio that encompasses a broad spectrum of crops, including cotton, corn, rice, vegetables and various field crops. This comprehensive range enables the Company to effectively address the requirements of a wide-ranging customer base, while also mitigating the risks associated with relying solely on a single crop or market segment. By offering such a diverse array of products, the Company strategically positions itself to cater to a multitude of agricultural needs and foster sustainable growth.
	The Company upholds rigorous quality control protocols at every stage of the seed production process. With state-of-the-art testing facilities at its disposal, the Company diligently scrutinises its seeds to ensure adherence to exacting standards of purity,
Quality control	germination and genetic traits. By consistently delivering quality seeds, the Company has built a foundation of trust and fostered loyalty among farmers who rely on its products. This unwavering commitment to maintaining superior seed quality contributes to the Companys esteemed reputation within the agricultural industry.
	The Company possesses a widespread distribution network that is available across the country. Through the cultivation of robust affiliations with distributors and retailers, the Company has successfully penetrated both rural and urban areas, effectively reaching a diverse range of farmers. This well-established distribution network serves
Distribution network
	as a crucial mechanism, guaranteeing the punctual accessibility of seeds to its esteemed customers. By forging enduring relationships and cultivating a broad reach, the Company ensures that its high-quality seeds are readily available, thus fulfilling the agricultural requirements of customers across the nation.
	Over the years, the Company has diligently cultivated a robust brand reputation within the agricultural industry. Renowned for its firm dedication to quality products, customer- centric practices and sharp focus on innovation, the Company has established a positive
Strong brand reputation	brand image. This favourable perception considerably aids in its ability to attract and retain customers, even amid a highly competitive market landscape. The Companys brand reputation serves as a testament to its commitment to excellence and sets it apart as a trusted and preferred choice for discerning customers.
	Challenges
	The seed industry is highly competitive, with several established players and new entrants. The Company faces competition from both domestic and international seed
Competitive market
	companies. Staying ahead of competitors and continuously innovating to meet evolving customer demands can be a significant challenge. The seed industry is subject to various regulations and policies related to seed certification, intellectual property rights and biosafety. Compliance with these regulations can be
Regulatory environment
	complex and time-consuming. Changes in regulations or new requirements may pose challenges for the Company to adapt and ensure compliance.
	Challenges
Crop variability and climate change	Agricultural productivity is influenced by climatic conditions, and unpredictable weather patterns and climate change can affect crop yields. The Company may face challenges in developing and adapting seed varieties that are resilient to climate change and can perform well under varying environmental conditions.
Price volatility	Commodity price fluctuations, including those of crops like cotton and corn, can impact the profitability of seed companies. The Company may face challenges in managing costs, optimising pricing strategies and mitigating risks associated with price volatility in agricultural commodities.
Intellectual property protection	Hybrid seed development involves significant investment in research and development. Protecting intellectual property rights for its proprietary seed varieties can be a challenge for the Company. Ensuring that its genetic innovations are adequately protected from unauthorised use or infringement is crucial for sustaining its competitive advantage.

Crop focus

Cotton

China has been the worlds top cotton producer in recent decades. India briefly held the leading position for some years during the last decade. However, since 2018-19, China has reaffirmed its position as the worlds leading cotton producer. Based on data from the International Cotton Advisory Committee (ICAC), it is projected that China has produced approximately 59.80 lakh tonnes of cotton in the fiscal year 2022-23. Following closely, India is estimated to have produced 52.00 lakh tonnes, while the USA and Brazil are expected to have produced 31.96 and 29.46 lakh tonnes of cotton, respectively. These four countries collectively contributed around 71% of the global cotton production, despite occupying only 64% of the worlds cotton-growing land.

India holds the leading position in terms of cotton cultivation area, encompassing approximately 130 lakh hectares, which accounts for roughly 40% of the total global cotton cultivation area. In terms of cotton productivity, Indias performance (439 kg/ha) significantly lags behind that of the leading cotton-producing nations such as Australia (2002 kg/ha), China (1971 kg/ha), Turkey (1828 kg/ha), Brazil (1771 kg/ha), Mexico (1599 kg/ha) and the USA (1061 kg/ha). To augment cotton productivity, concerted research and developmental initiatives are underway, focusing on diverse aspects such as the enhancement of genotypes through novel genetic traits, the improvement of production environments, innovative approaches to crop geometry and the provision of high-quality inputs.

During the financial year 2022-23, the states of Gujarat, Maharashtra and Telangana emerged as the major cotton-growing regions, collectively accounting for approximately 68% (82.09 lakh hectares) of the total cotton cultivation area in the country. Moreover, these states contributed to around 65.35% (236.69 lakh bales) of the cotton production in the country.

Maharashtra stood out as the leading cotton-producing state, demonstrating a significant increase in productivity levels over the past few years. In the North zone, comprising states such as Punjab, Haryana and Rajasthan, the total cotton area sown in 2022-23 amounted to around 17.06 lakh hectares, witnessing a decrease of 5.22% compared to the previous year. Nonetheless, cotton production in the North zone remained undisturbed, resulting in an output of approximately 60 lakh bales.

In the Central zone, encompassing various regions, the cotton cultivation area was estimated at 68.10 lakh hectares, experiencing a decrease of 4.46% compared to the previous year. Despite this reduction in area, cotton production in the Central zone saw a modest increase of 1.83% compared to the preceding year.

Conversely, in the South zone, the cotton cultivation area for the year 2022-23 amounted to approximately 33.04 lakh hectares, indicating a notable decline of 15.21% compared to the previous years 38.97 lakh hectares. However, the cotton production in the South zone displayed a positive trend, experiencing a growth of 3.03% in the current year as compared to the last.

In terms of cotton productivity, Andhra Pradesh and Telangana achieved commendable progress, with productivity enhancements of approximately 32.44% and 28.70%, respectively, compared to the previous year. Additionally, states, including Haryana, Odisha, Gujarat and Punjab, also realised notable improvements in cotton productivity, each recording enhancements of over 10% during the current year.⁹

Rice

Rice holds paramount importance as Indias primary food crop, constituting approximately one-fourth of the countrys total gross cropped area. The cultivation of rice forms the primary economic activity for millions of impoverished rural farmers in the region. The agricultural sector contributed to 18.3% of Indias GDP in the fiscal year 2022-23, with rice alone accounting for 50% of the countrys Agricultural GDP, benefiting from supportive Government policies. The adoption of hybrid rice stands at about 9.5% with an acreage of 4.2 million hectares, indicating room for further expansion.

India ranks as the second-largest rice producer globally, following China, and this achievement can be attributed to favourable monsoon rains, which have significantly contributed to rice production. The estimated rice production during the period 2022-23 has reached a record-breaking 129 million tonnes.

In the fiscal year 2022-23, Indias non-basmati rice exports reached 17.79 million tonnes, valued at USD 6.36 billion, showing an increase from 17.3 million tonnes in FY22. However, broken rice exports experienced a decline of 23% compared to the previous year due to a ban on shipments aimed at stabilising domestic prices. Nonetheless, exports are anticipated to decline in FY24 due to the impact of a 20% export duty imposed on non-basmati varieties, which is expected to be evident from April onwards.

To support farmers, the Minimum Support Price (MSP) for common paddy has been raised from H 2040 per quintal in 2022-23 to H 2,183 per quintal for FY 2023-24.

Maize

Maize is the third most significant cereal crop in India, trailing behind rice and wheat. It can be cultivated in diverse environments, ranging from extreme semi-arid to sub-humid and humid regions, accounting for approximately 82% of the area under cultivation during the kharif season. Maize contributes approximately 10% of the total food grain production in the country, with cultivation spanning nearly 201 million hectares, resulting in a production of 1162 million tonnes and a productivity rate of 5754.7 kg/ha globally, owing to its adaptability to various soil types, climates, biodiversity and management practices (FAOSTAT 2020).

The Indian maize sector offers numerous opportunities in various sectors such as seeds, non-seed inputs, farm mechanisation, processed foods, industrial products, market-related infrastructure, storage and processing. Moreover, it has the potential to play a vital role in providing food security, feed security, nutritional security and increased income for maize growers. The cultivation of maize is considered a promising venture for doubling farmers income as it requires less water while yielding higher productivity per hectare.

As of February 3, 2023, the sowing of rabi maize in India has encompassed approximately 23.04 lakh hectares (56.93 lakh acres), which is substantially more when compared to the corresponding period of the previous year, when 20.50 lakh hectares (50.66 lakh acres) were covered. The major maize-growing states include Bihar with 6.53 lakh hectares (16.14 lakh acres), Maharashtra with 3.88 lakh hectares (9.58 lakh acres), Telangana with 2.62 lakh hectares (6.48 lakh acres), Tamil Nadu with 1.96.870 lakh hectares (4.84 lakh acres) and Andhra Pradesh with 1.82 lakh hectares (4.50 lakh acres). According to the third Advance Estimates of Production of Food Grains for 2022-23, the overall maize production estimate for India stands at 35.91 million tonnes.

Within India, more than three-fourths of maize cultivation takes place in states like Madhya Pradesh, Karnataka, Maharashtra, Rajasthan, Bihar, Uttar Pradesh and Andhra Pradesh. The cultivation of maize is classified into two production environments- traditional maize growing areas (Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh) and non-traditional maize areas (Karnataka and Andhra Pradesh). Over the years, there has been a notable regional shift in maize production, with southern states emerging as the largest maize-producing regions, while the traditional major maize-growing states experienced a decrease in maize cultivation since the 1990s.

Pearl millet

India is the largest producer of millet, accounting for 41% of the global production, with Niger (approximately 12%) and China (around 8%) following behind. In terms of high-yield millet production, India ranks 12th among countries. Millets have been an integral part of the Indian diet for centuries, offering numerous health benefits and demonstrating eco-friendliness through their low water and input requirements during cultivation. In recognition of their significance, the United Nations, in response to the Government of Indias initiative, has declared the year 2023 the International Year of the Millet, aiming to raise awareness and promote increased production and consumption of millets.

In India, millets are cultivated across approximately 7.5 million hectares, with an annual production of 9.0 million tonnes, contributing 10% to the countrys overall food grain basket. Rajasthan has the highest millet cultivation area (31.3%), followed by Maharashtra (18.9%), Karnataka (13.3%), Uttar Pradesh (8.9%), Tamil Nadu (4.2%) and Madhya Pradesh (3.9%). These regions typically experience low to moderate precipitation levels ranging from 200 to 800 mm of rainfall. Notably, the highest millet yields were recorded in Tamil Nadu (2137.60 kg/ha), Delhi (1579.50 kg/ha) and Madhya Pradesh (1420.50 kg/ha).

Mustard

Rapeseed mustard is predominantly grown in India for its oil and meal. Brassica juncea, B. rapa syn., B. campestris, B. napus and B. carinata (for edible oil), as well as B. oleracea and B. nigra (for seed condiments), are the key oilseed brassica species cultivated in the country. Brassica juncea (L.) Czern, often known as Indian Mustard, is the most important in terms of cultivation area (about 80% of total brassica oilseeds cultivated area in India) and oilseed output, notably for culinary oils. Rapeseed mustard flourishes in a variety of agro-climatic settings, from the north-eastern and north-western hills to the southern areas and under several farming practises, including irrigated or rainfed, timely or late sown and mixed cropping. The major states contributing to nearly 85.0% of the area and 90.21% of the production of rapeseed-mustard in India are Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, Gujarat and West Bengal. Despite significant progress achieved in oilseed production, India still imports over 50% of its total edible oil requirement, mainly due to increasing consumption driven by population growth and changing lifestyles.

Over the past three years, the implementation of the Mustard Mission has resulted in a significant enhancement of rapeseed and mustard production, increasing by 40% from 91.2 to 128.2 lakh tonnes. Additionally, the productivity of rapeseed and mustard witnessed an 11% rise, improving from 1331 to 1447 kg/ha. Moreover, the area under rapeseed and mustard cultivation experienced a notable expansion, growing by 29% from 68.56 lakh hectares in 2019-20 to 88.58 lakh hectares in 2022-23. ¹¹

Wheat

Wheat will continue to play a pivotal role in ensuring global food security. As it is cultivated in nearly every region worldwide, it serves as a primary source of sustenance and income for countless smallholder farmers. Globally, wheat is grown across an extensive area of approximately 220 million hectares, resulting in a remarkable record production of 781 million tonnes of grain.

The wheat production in the country has reached a record estimate of 1127.43 LMT (lakh metric tonnes), reflecting a significant increase of 50.01 LMT compared to the production of the previous year. ¹² Uttar Pradesh holds the largest share in wheat cultivation area (32%), followed by Madhya Pradesh (18.75%), Punjab (11.48%), Rajasthan (9.74%), Haryana (8.36%) and Bihar (6.82%). A substantial expansion in wheat cultivation area has been observed in states like Jharkhand (51%), Madhya Pradesh (27%) and Rajasthan (13%). This growth can be attributed to the increase in minimum support prices and government procurement.

Given its significant share in the consumption of the food basket, with 36% of the total food grains produced in India, wheat plays a vital role in ensuring not only food security but also nutrition security. The Government extensively procures wheat and distributes it to the majority of the population, contributing to food security. As a cereal, wheat stands as one of the most affordable sources of energy, providing a major share of protein intake (20%) and calorie consumption (19%).

Vegetables

black>Hot pepper

There is dearth of analysis on various vital aspects of the Hot-pepper production and marketing such as latest prices and trends at major national and international markets, seasonal price fluctuations, demand and supply pattern, overall production in the country, stocks available in cold storages, scientific forecasting, crop and weather information, its impact on agriculture and allied sectors, and hedging among the various varieties of chillies. With unfavourable deviations in Hot-pepper cultivation leading to reduced income, farmers are facing serious repercussions and risks. To overcome such issue our research focus on quick drying will help farmers to protect their crops from vagaries weather. Another research focus is on Colour Retentions will help farmers to store their products under room temperature when particularly during the price fluctuations instead spending money on Cold storages. Geographically distinct viruses and strains Chilli Leaf curl virus (a Gemini group of virus) limited work had been done by institutes is focused in Kaveri, identified resistant source, understand its inheritance and trait introgression is in progress in Female and Male parents.

Okra

The global production of okra is estimated to be approximately 9.96 million metric tonnes (MMT). India is the leading producer of okra in the world, contributing 6,889 thousand tonnes, which accounts for an impressive 73% of the total global production. Okra is cultivated across an area of 0.523 million hectares (523,000 hectares) in India, resulting in a total production of 6.4 million metric tonnes and an average productivity of 12 metric tonnes per hectare (MT/Ha) (FAOSTAT, 2020).

The leading states in India for okra production are Gujarat (16.65%), West Bengal (15.09%), Orissa (11.97%), Madhya Pradesh (10.86%), Bihar (10.81%), Chhattisgarh (5.98%), Uttar Pradesh (4.55%), Andhra Pradesh (3.96%), Tamil Nadu (3.46%) and Maharashtra (2.59%).¹³

The estimated total market size for okra stands at 1800 metric tonnes, with a corresponding market value of 369 crore. Hybrid varieties hold a significant share of approximately 75% in the okra market.

Tomato

Tomato cultivation is widespread across all states in India, albeit in varying quantities. The highest tomato production is observed in the southern and western regions of the country, collectively contributing 56%-58% of the total tomato production in India.¹⁴ These regions, known as surplus states, serve as significant suppliers to other markets, depending on production seasons. Due to distinct production seasons, the availability of tomatoes varies across different regions of the country.

Gourds

In India, bitter gourd cultivation covers an extensive area of over 96,000 hectares annually, primarily undertaken by smallholder farmers. The bitter gourd seed market comprises approximately 530 to 580 metric tonnes (MT), with F1 hybrid seed accounting for 250 to 280 tonnes and open-pollinated (OP) seed accounting for 280 to 300 tonnes. Commercial OP bitter gourd cultivars typically yield an average of 12 to 15 tonnes per hectare, while commercial hybrids exhibit higher yields ranging from 25 to 30 tonnes per hectare.

The bottle gourd cultivation encompasses a total seed market of 320 metric tonnes, and the cultivation area spans 157,000 hectares. The resulting production from this cultivation area amounts to 2,572,000 metric tonnes, with an average productivity of 16.38 tonnes per hectare. ¹⁵

Challenges and research interventions

The major impact of severe climate shifts on a global scale presents numerous challenges that necessitate the efforts of scientists and innovators to meet the growing food and nutrition demands. Various elements, such as climatic changes, biological traits, natural resources and policy decisions, contribute to uncertainty in acreage allocation for key field and vegetable crops. Government policies, such as Minimum Support Price (MSP), Seed Replacement Rate (SSR) and Seed Distribution Systems, also add to the unpredictability, creating numerous challenges for Indian farmers, traders and researchers.

Indias export-import policies are primarily influenced by traders, who often prioritise their interests over the welfare of farmers, leading to a discouragement among farmers to cultivate less remunerative crops, resulting in diminished yields and productivity. Addressing these constraints calls for innovative research strategies and thinking outside the box, with an urgent need for a comprehensive revamp in order to unlock the full potential of agricultural production and ensure sustainable growth.

Cotton

Pink bollworm (PBW) has emerged as a major economic pest in major cotton-producing states of India, including Maharashtra, Gujarat, Madhya Pradesh, Telangana, Andhra Pradesh and Karnataka, collectively accounting for major part of the countrys cotton cultivation. This issue is progressively spreading to newer areas as well. The concerning aspect is the development of field-evolved resistance by pink bollworm to Bollgard (Cry1Ac) in India, which was first reported in 2010 and subsequently to Bollgard II (Cry1Ac and Cry2Ab) in 2014. Over the past five to six years, early incidences of pink bollworm have been observed on BG-II hybrids in the most extensive cotton-growing regions in Central and South India.

The development of short-duration compact genotypes, coupled with synchronised boll bursting, is a crucial necessity to evade pink bollworm (PBW) attacks. Additionally, an emerging threat to cotton cultivation in India is the Tobacco streak virus (TSV) disease, which is transmitted by thrips (a vector). The disease manifests through common symptoms such as chlorosis of young leaves at the growing tip, discoloration, bronzing, necrosis, leaf curling and dwarfing of affected leaves, ultimately leading to square drying.

TSV disease has been observed predominantly in specific regions, including Warangal, Karimnagar and Sangareddy districts of Telangana state, the northern part of Karnataka state and the Marathwada region of Maharashtra. Environmental factors, particularly prolonged dry spells, create favourable conditions for the development of this disease in cotton, as the fertility of thrips significantly increases during such conditions. In response to these challenges, the Companys breeding efforts have been meticulously planned to address both PBW and TSV systematically.

The major biotic stresses affecting cotton cultivation include the early season sucking pest complex and the Cotton Leaf Curl Disease (CLCuD). On the other hand, the major abiotic stresses encompass initial high heat, drought and soil salinity. In response to these challenges, the Company has undertaken a comprehensive approach by recalibrating its breeding and testing locations to focus on developing climate-resilient genotypes. These efforts are specifically targeted in hotspot areas where these stress factors are prevalent, aiming to enhance the adaptability of cotton varieties to withstand and thrive under harsh climatic conditions.

Rice

In India, the production of rice is predominantly concentrated in the Kharif season, accounting for approximately 85% of the total production, while the Rabi season contributes about 15%. The Kharif season commences as early as May and continues until August. The Rice draft policy recommendations put forth by the Government of India advocate for surplus rice production in the country and propose a reduction of 3 million hectares in certain regions of Madhya Pradesh and Maharashtra, where the land is suggested to be utilised for other field crops, oilseeds and vegetables.

In recent times, there has been a growing momentum towards exploring opportunities for hybrid rice cultivation in upland and rainfed lowland ecologies. For sustainable production, the adoption of Direct Seeded Rice (DSR) planting in these ecologies is encouraged, which aids in reducing carbon and water footprint. However, weed competition poses a significant challenge in this context and the integration of non-GMO herbicide traits is viewed as a means to provide higher benefit-to-cost ratios for the farming community.

Emphasis is placed on cultivating Basmati rice varieties in the states of Punjab, Haryana and Western Uttar Pradesh. Three varieties of Basmati, namely Pusa Basmati-1509,

Pusa Sugandh-5 and Pusa-1121, have earned recognition in the mega variety list, implying an increasing trend in the cultivation of Basmati rice.

In different regions of India, specific trait requirements are considered while selecting rice varieties for cultivation. For instance, Tamil Nadu sees rice cultivation throughout the year, with a preference for non-aromatic rice with intermediate amylose content and high head rice recovery. In Karnataka, the sowing season is slightly delayed for both Kharif and Rabi and the preferred varieties are short and slender with medium maturity and good cooking quality, especially in central and north Karnataka. In South Karnataka, the preference lies in coarse-grained, non-aromatic rice with high head rice recovery, mid-early maturity and medium maturity. Recent varieties such as MTU1156 and RNR-15048 have made their way onto the Mega Varieties list, signifying their acceptance and popularity among farmers. Early-maturity varieties are increasingly becoming the preferred choice across different grain types.

Maize

Rabi maize exhibits a distinct comparative advantage over Kharif maize due to its lower incidence of diseases and insect pests, as well as slower weed growth. These favourable factors have encouraged the adoption of Rabi maize cultivation in various states, including Andhra Pradesh, West Bengal, Uttar Pradesh, Madhya Pradesh, Tamil Nadu, Karnataka and Punjab, where it has been cultivated successfully.

The adaptation of maize to the winter season necessitates genetic improvement for cold tolerance, aiming to ensure vigorous seedling growth without succumbing to cold injuries under low temperature conditions. Extremely cool temperatures can adversely impact maize growth throughout various stages, from emergence to flowering and seed-setting.

Planting at low temperatures can significantly impact germination, while prolonged exposure during the vegetative phase may lead to reduced plant height, leaf yellowing, chlorosis and tip firing due to leaf tissue death. Cold stress during the reproductive stage can severely affect flowering, resulting in reduced tassel size and branches, delayed anthesis, pollen grain death, reduced silk size and in some cases, considerable reductions in seed setting, thus significantly affecting the yield.

Millet

India is the largest producer of millet as of 2023, with a total share of 41%, followed by Niger (~12%) and China (~8%). India also ranks 12th among those countries that produce high yields of millet. Millets have been an integral part of our diet for centuries. They offer a plethora of health benefits and are also good for the environment with low water & input requirements for production. With the aim to create awareness and increase production & consumption of millets, the United Nations, at the behest of the Government of India, declared year 2023 as the ‘International Year of the Millet.

Millets in India are grown about 7.5 million ha. with an annual production of 9.0 million tonnes and contribute 10% to the countrys food grain basket. Rajasthan has the highest area under millets cultivation (31.3%) followed by Maharashtra (18.9%), Karnataka (13.3%), Uttar Pradesh (8.9%), Tamil Nadu (4.2%) and Madhya Pradesh (3.9%) characterized by low to moderate precipitation (200–800 mm rainfall). However, the highest yields were recorded in Tamil Nadu (2137.60 kg/ha), Delhi (1579.50 kg/ha) and Madhya Pradesh (1420.50 kg/ha). Millets are important in view of the shorter growing season, ability to adapt to a wide range of temperatures, moisture-regimes and input conditions, besides their ability to convert more carbon dioxide into oxygen as C4 crops.

A strong product pipeline is the key driver for sustainable growth. We at Kaveri, have a well-defined and time-tested product advancement system that helps us in delivering superior products every year and creates sustainable value preposition for our customers in line with

our Long-Look. Our products are clear winner in terms of yield for maturity in Kharif Millet portfolio. Also, we have advanced new hybrids for Summer High Management segment and also for Kharif Medium maturity market segment recently. Amongst the new initiatives taken in the research program include fixed benchmark for promotion of products for rainy season and summer season, breeding and testing location expansions and diversification of MS line, A4 and A5 CMS system fromA1 cytoplasm.

Mustard

The cultivation of mustard crops encompasses a wide range of agro-ecosystems and cropping systems, demanding a meticulous fitment of products suitable for various zones and soil types to achieve optimal yields in the farmers fields. This poses a significant challenge for researchers.

Oilseed crops, including mustard, are grown in rainfed environments and often face challenging soil conditions in different regions. Ensuring stable productivity over the years under such circumstances becomes highly challenging, necessitating the development of state-wise strategies to meet the nations oil requirements.

The cultivation of oilseed brassicas across the country follows diverse timings and patterns with varying cultural practices, making the development of suitable cultivars for these situations exceedingly challenging. The lack of diverse germplasm resources, with most genetic variability belonging to a few common ancestors, calls for diversification at both the gene and genome levels.

Mustard is often considered a crop of impoverished farmers and is cultivated in rainfed and resource-poor environments with limited inputs applied, posing challenges to increasing the yield levels of oilseeds.

The cultivation of oilseed brassicas under varying environmental conditions exposes them to various biotic and abiotic pressures, limiting yield levels. Therefore, the availability of cultivars adapted to these challenging conditions remains a critical challenge.

The scarcity of high-yielding varieties and hybrids with appropriate resistance against various biotic and abiotic stresses further compounds the difficulties in mustard cultivation.

The uncertainties in acreage of these crops caused by climatic variations, biological factors, natural resources and policy decisions highlight the need for innovative research strategies and an urgent revamp of the research approach to fully exploit the potential of rapeseed-mustard crops.

Wheat

Wheat will continue to play a significant role in securing global food security. Wheat is grown in nearly every region of the world and represents a main source of food and income for millions of smallholder farmers. Globally wheat is cultivated in area about 220 million hectares with a record production of 781 million tonnes of grain. The cultivated area under wheat at national level has shown increasing trend, from 29.04 million hectare to 34 million hectare with all-time highest output of 106 million tonnes of wheat (13.64% of world production) with a record average productivity of 3500 kg/ ha. Uttar Pradesh has largest share in area with 9.75 million hectare (32%), followed by Madhya Pradesh (18.75%), Punjab (11.48%), Rajasthan (9.74%), Haryana (8.36%) and Bihar (6.82%). However, a major expansion in wheat area was observed in the states such as Jharkhand (51%), Madhya Pradesh (27%) and Rajasthan (13%). The sharp rise in minimum support price and governments procurement are the two important drivers which led to significant increase in the area under wheat cultivation. The crop has been under cultivation in about 34 million hectares in 2022-23 (14% of global area) to produce the all-time highest output of 106 million tonnes of wheat (13.64% of world production) with a record average productivity of 3500 kg/ha. Having a significant share in consumption of food basket with a 36% share in the total food grains produced from India and ensuring not only food security but also nutrition security, wheat is extensively procured by the government and distributed to a majority of the population; it ensures not only food security but also nutrition security. The cereal is one of the cheapest sources of energy, provides a major share of protein (20%) and calorie intake (19%) from consumption.

Tomatoes

The production of tomatoes in India is impacted by the Tomato Yellow Leaf Curl Virus (TYLCV). These viruses can be broadly classified into monopartite and bipartite (ToLCNDV) strains. The expression of Ty genes may vary depending on the prevailing viral strains and the genetic background of the tomatoes. In the Kharif season, the Early and Late blight diseases pose major concerns for tomato cultivation. Additionally, the diverse preferences of consumers lead to region-specific requirements for tomato hybrids, presenting challenges in tomato breeding.

A viral complex disease, resulting from the combination of four different viruses [CMV (48-70%), GBNV (15-31%), TCV (11-21%), and TMV (0.5-2.55)], has been observed in Maharashtra, leading to misshapen and yellow fruits. The optimal day and night temperatures for normal growth, flowering and fruit development in tomatoes are 28-34?C and 18-22?C, respectively. Deviations from these temperature ranges can disrupt the reproductive cycle of the crop.

To address these challenges, research interventions are being undertaken, such as conducting trials at hotspots, gathering resistant germplasm from various institutes and platforms like WVC, NRC and SAU, as well as screening Germplasm lines for heat tolerance across different environments in the country. These efforts aim to identify promising fruit set lines for integration into the tomato breeding programme.

Hot pepper

There is a lack of comprehensive analysis on various crucial aspects of hot pepper production and marketing, including up-to-date prices and trends in major national and international markets, seasonal price fluctuations, demand and supply patterns, overall production levels in the country, available stocks in cold storages, scientific forecasting, crop and weather information, its impact on agriculture and allied sectors and hedging strategies among the different varieties of chillies. The absence of such analyses leaves farmers vulnerable to unfavourable deviations in hot pepper cultivation, resulting in reduced income and exposing them to serious repercussions and risks.

To address these concerns, the Companys research is focused on two main areas. The first area involves developing quick drying techniques to help farmers protect their crops from unpredictable weather conditions. This enables them to safeguard their produce and prevent losses. The second area of research is focused on Colour Retentions, which provides farmers with the ability to store their products at room temperature during periods of price fluctuations, eliminating the need for expensive cold storage.

Additionally, there is a need for more research on geographically distinct strains of viruses, especially the Chilli Leaf Curl virus, which belongs to the Gemini group of viruses. Limited work has been done by institutes in this area and the research is concentrated in the Kaveri region. The Company is identifying resistant sources, studying the inheritance of these traits and making progress in the introgression of desirable traits in female and male parent viruses.

Okra

Okra cultivation faces challenges due to geographically distinct viruses. One of the significant and long-term objectives in okra breeding is the pyramiding or common tolerance of these strains, which is a complex task. To address strain variations and develop specific and combined tolerances, inbred development is conducted in major hotspots.

Several challenges are encountered in okra breeding, including the masking effects where the plant mainly expresses either YVMV or ELCV, the very short product life cycle, narrow heterosis resulting in negligible yield differences between Open Pollinated Varieties (OPV) and Hybrids, limited sources of resistance and stable and durable tolerance. The complexity of the okra genome and limited work on biotechnology aspects further complicate breeding efforts. Additionally, there are limitations in germplasm availability, hybrid sterility issues and negative linkages, such as the negative correlation between fruit quality and virus tolerance. High incidences of viruses are often observed during the Kharif and Summer seasons.

Ongoing efforts involve the introgression of Genetic Male Sterility (GMS) into commercial and elite lines to enhance breeding efficiency. Marker-Assisted Breeding is being employed and the in-house breeding programme is being strengthened with a focus on developing more segregated populations, screening them across various locations and ultimately achieving multi-race tolerance.

To tackle these challenges effectively, crop research is being reinforced with a robust breeding and testing network to deliver promising and suitable products for diverse environments.

Human resources

The Company firmly believes that the combination of talent and teamwork holds the power to drive positive organisational change and establish higher benchmarks for value creation among stakeholders. This dynamic duo has been the primary catalyst behind the Companys consistent growth since its inception.

A fundamental goal of the Company has always been to attract, nurture, and retain industry-relevant talent in order to unlock its long-term growth potential. At Kaveri, the Company fosters an environment that empowers teams to excel in their respective roles by cultivating a culture of continuous learning and development.

The Companys leadership team has extensive experience in the seed and crop production industry. Their profound knowledge and expertise serve as valuable assets in steering the Company towards success.

The Companys dedicated workforce consists of scientists, including numerous Ph.D. scholars specialising in various disciplines such as breeding, agronomy, biotechnology and seed technology. This multidisciplinary approach allows the Company to develop and deliver the right products that cater to diverse climatic conditions, while being resistant to pests and diseases. Through the collective efforts of talented teams, guided by experienced leaders and supported by a strong scientific foundation, the Company remains steadfast in its pursuit of providing quality products and solutions to its customers.

Financial performance

	FY2022-23	FY2021-22	% Change
Revenue from operations	1,00,056.43	91,500.02	9.35
EBITDA	29,694.08	23,840.59	24.55
PBT	27,725.43	21,818.04	27.08
PAT	26,704.45	20,890.31	27.83

Key ratios

	FY2022-23	FY2021-22	% Change
Inventory turnover (in times)	0.66	0.61	8.20
Current ratio (in times)	2.50	2.73	(8.42)
Debt equity ratio (in times)	0.01	0.01	-
EBIDTA margin (%)	28.07	24.86	12.91
Return on Equity (%)	23.38	17.61	32.77
Net profit margin (%)	25.24	21.79	15.83
Earnings per share (INR)	46.35	35.23	31.56

	RisK	Mitigation
Regulatory risk	Changes in government policies related to seeds, agriculture, or biotechnology can significantly impact Kaveri Seeds. For instance, policies related to genetically modified (GM) crops, intellectual property rights, seed pricing, or export-import restrictions can have a substantial effect.	The Company is embarking on an endeavour to establish an advanced supply chain network through the use of Artificial Intelligence (AI). The incorporation of these cutting-edge, technology-driven solutions is set to elevate the existing infrastructure, facilitating more streamlined and efficient operations.
	The Company operates in a competitive market with several local and multinational companies. Any changes in market dynamics, such as new entrants, competitive pricing strategies, or advancements in seed technology, can impact the Companys market share and profitability.	The Company prioritises innovation and customer satisfaction. It makes significant investments in research and development to create cutting-edge hybrid seeds tailored to withstand diverse agro-climatic regions. It also fosters robust customer relationships through its on-the-ground teams,
Market and competition risk		ensuring prompt dissemination of agricultural technologies and personalised support for farmers. Additionally, the Company implements a proactive pricing strategy, carefully monitoring market dynamics to offer competitive pricing and retain its market share. This strategic approach effectively sets the Company apart from its competitors, reinforcing its market position and ensuring sustained growth.
Climate risk	As an agricultural company, the Companys operations are significantly influenced by climatic conditions. Unfavourable weather conditions, such as droughts, floods, or unseasonal rains, can adversely affect agricultural productivity and the demand for seeds.	To mitigate the above risk, Kaveri Seed developed the state- of – the- art Biotechnology laboratory. By using sophisticated tools of precision breeding techniques in combination of classical plant breeding developed the products. It will fit well as per the need of the hour of present environmental situations
Supply chain risk	Any disruptions in the supply chain, such as logistics issues, labour strikes, or raw material shortages, can impact the Companys ability to produce and distribute its seeds on time.	Your Company work with reputed and reliable transporters through our robust Logistic framework. All logistics are tracked with specific vehicle movement informed till the last mile. Transit insurance for all shipments arranged to avoid any possible loss during transit
Research and development risk	The seed industry requires continuous R&D to develop new and improved seed varieties. Any failure in R&D efforts can impact the Companys growth and competitiveness.	We are making investments towards non-transgenic traits to meet the customer requirements. We are also exploring in- licensing opportunities for key crops as and when needed arises.
		Investment and price Risk
Financial risk	The Company is exposed to various financial risks, such as fluctuations in interest rates and commodity prices, which can affect its profitability.	The Company takes all the precautions to minimise price risk arising from investments in debt mutual funds. The company is investing mainly in debt mutual funds through leading mutual fund companies and in best mutual funds where price risk is very low. The company examines fund performance, rating, liquidity and risk aspects before investing.

Farmer engagement

The Company devotes considerable managerial resources to cultivating and strengthening relationships with farmers, with the ultimate goal of becoming the leading seed company in generating value for shareholders. As a farmer-centric organisation, the Company prioritises investing in research and development to produce top-quality seeds that yield high agricultural outputs. Additionally, the Company engages with farmers to collaborate on product development projects and conduct various educational programmes aimed at enhancing their farm productivity.

CSR

As a socially responsible corporation, the Company consistently strives to give back to society and the communities in which it operates. The Companys sustainability strategy encompasses various community development programmes aimed at improving the lives of farmers and rural individuals. With a primary emphasis on grassroots empowerment. The Companys focus areas revolve around developmental initiatives in education, agriculture, the environment and community infrastructure. Through these endeavours, the Company aims to create a seamless connection between its efforts, ensuring a holistic approach towards uplifting the communities it engages with. By prioritising education, the Company seeks to provide opportunities for knowledge acquisition and skill development, empowering individuals to build sustainable livelihoods.

The Company also strives to enhance farming practices, promote sustainable techniques and support farmers livelihoods. The Companys commitment to environmental stewardship drives it to undertake initiatives that protect and preserve the natural resources in and around the communities it operates in. Additionally, it engages in developing community infrastructure, fostering an environment conducive to growth and progress.

The company has adopted villages named Gatla Narsingapur, Ramnagar and Bollone Pally in Telangana.

It has educated 850+ plus students in schools built by it at Gatla Narsingapur.

It has also provided Bus transport to school students in Gatla Narsingapur.

Establishing 6-lane athletic turf track,

Basketball and Throw ball sports gaming court for students at Siddipet School.

Constructed CC Roads, Sewage Lines and Water Tank in Pamulaparthy Village.

Constructed Road side Culvert at Bollonepally Village,

Bheemadevarapally Mandal, Warangal urban and Karimnagar district.

Kaveri Seeds committed to give greenery to next generation for this we have given 3226 number of plants to Gadwal and Siddipet districts.

Internal control systems

The Company has established a set of standards to facilitate the implementation of internal financial controls throughout the Company. These standards ensure that the controls are sufficient and functioning effectively. The Board of Directors regularly assesses the findings and recommendations of the statutory auditors, internal auditors and secretarial auditors and proposes corrective measures as needed. The Audit Committee, consisting of the Board of Directors, evaluates the adequacy and effectiveness of the internal control systems and proposes enhancements to strengthen them. The Audit Committee, Statutory Auditors and Finance heads are regularly informed about the internal audit findings and appropriate actions are taken. The Internal Audit team develops annual audit plans based on risk assessments and conducts thorough evaluations of financial, operational and compliance controls. Auditing plays a crucial role in providing assurance to the Board of Directors. Noteworthy audit observations and the corresponding corrective actions implemented by management are presented to the Audit Committee. The Audit Committee oversees the performance of the Internal Audit team on a quarterly basis by reviewing the audit plans, findings and speed of issue resolution through follow-ups. At least four meetings are held each year, during which the Audit Committee examines the internal audit findings, ensuring the assurance and advisory functions are responsible for evaluating and enhancing the effectiveness of risk management, control and governance processes. The internal audit team contributes to the improvement and safeguarding of organisational values by offering risk-based, objective assurance, advice and insights.

Cautionary statement

This document contains forward-looking statements regarding the anticipated future events and financial as well as operating outcomes of Kaveri Seeds. As inherent in such statements, the Company must rely on assumptions and is exposed to inherent risks and uncertainties. There is a significant possibility that these assumptions, predictions and other forward-looking statements may not prove to be accurate. Readers are advised to exercise caution and not place excessive reliance on the forward-looking statements, as various factors could cause the assumptions, actual future results and events to differ significantly from those expressed in the aforementioned statements. Consequently, this document is subject to the disclaimer and is fully contingent upon the assumptions, qualifications and risk factors outlined in the managements discussion and analysis provided in Kaveri Seeds Annual Report for the period of 2022-23.