Kaveri Seed Company Ltd Management Discussions

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Formation & Promotion of 10,000 Farmer Producer Organisations (FPOs)- These help farmers leverage collective strength and obtain better access to markets and technology.

National Beekeeping and Honey Mission (NBHM) and National Bamboo Mission (NBM)- These missions promote niche areas that have the potential for growth and support rural employment.

Rashtriya Krishi Vikas Yojana, Mission for Integrated Development of Horticulture (MIDH) and Mission Organic Value Chain Development for North Eastern Region- These programmes mainly focus on specific crops and regions to enhance production quality and marketability.

Namo Drone Didi: This initiative supports the use of drones in agriculture, enhancing precision farming practices to increase efficiency and reduce labour costs. The Government expenditure on these agriculture and allied activities has also been consistent over the years. Overall, these schemes collectively support infrastructure development, post-harvest management and farmer collectives and they promote agri start-ups, contributing significantly to the growth and development of the sector.

Trend of Agriculture and Allied

Activities Expenditure ( Lakh Crore)

Source: Ministry of finance - Budget at a glance 2024-25 https://www.indiabudget.gov.in/doc/Budget_at_ Glance/budget_at_a_glance.pdf

Organic and natural farming

The global shift towards sustainable agriculture and healthier food choices has driven Indias Organic and natural farming towards gaining a significant momentum. Factors such as domestic consumer demand and the potential for export growth is driving this sector towards rapid evolution. The Indian Organic Farming

Market was valued at USD 1.64 Billion in 2024 and is projected to grow to reach USD 2.13 billion by the end of 2030 with a CAGR of 4.38%¹³. Some key Government initiatives in this regard are-

Paramparagat Krishi Vikas Yojana (PKVY)- Organic farming is promoted by this scheme through a cluster approach and PGS certification, with financial assistance provided to farmers.

Mission Organic Value Chain Development for Northeast Region (MOVCDNER)- It aims to develop organic value chains and support organic crop production and processing in the North-east region.

Jaivik Kheti Portal- It connects farmers with buyers and serves as a knowledge platform for organic farming practices.

National Programme for Organic Production (NPOP)- This programme oversees the accreditation of Certification Bodies and promotes organic farming standards and marketing.

Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)- It encourages the creation of global food manufacturing champions, including organic products.

Technological trends in agriculture

The agricultural sector in India is witnessing a transformative shift towards more technologically advanced and sustainable farming practices. The integration of emerging technologies is not only enhancing operational efficiency and productivity, but it is also addressing many long-standing challenges such as resource management, labour shortages and environmental sustainability. Although these technologies have not yet been democratised, they are creating their impact in various places across the country.

Indian seed industry

India has one of the largest seed markets in the world. This is due to the countrys diverse agro-climatic zones and extensive farming activities. The Indian seed industry has also reached a size of US$ 3.61 Billion in 2024 and is estimated to reach US$ 5.01 Billion by 2030. This exhibits a growth rate (CAGR) of 5.58% during 2024-2030¹⁴.

Key growth drivers

Geographic diversity - Indias excellent geographic position, with diverse natural and climatic conditions and extensive arable land, support the demand for a variety of seeds that can meet the agricultural needs of different regions and contribute to food security for a growing population.

Industry collaboration - The commercialisation of agriculture, along with partnerships between the public and private sectors, is accelerating innovation and the transfer of technology in seed development. This in turn, is enhancing the industrys adaptability and growth. Technological advances - The industry is increasingly utilising technology such as data science, artificial intelligence (AI) and genomics to develop seeds resistant to pests and harsh weather conditions. This improves agricultural productivity and resilience.

Government support - Initiatives like the Integrated Scheme for Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) and the Rashtriya Krishi Vikas Yojana, provide essential support. These programmes encourage research and the adoption of advanced agricultural practices and create a supportive environment for the seed industry.

Research and development- Both private as well as government sectors have invested significantly in research and development, expecting high-yield, disease-resistant seeds. These efforts are essential to meet the evolving challenges of agriculture, such as climate change.

Demand for quality seeds – The demand for high-quality seeds among farmers, is on the rise. This demand is mainly driven by the need to increase productivity and profitability. This demand pushes seed companies to continuously innovate and improve their products.

Outlook

Going forward, the Indian seed industry is expected to witness further growth with an emphasis on sustainable practices and technological innovation. With continued focus on R&D and the gradual acceptance of biotech crops, the industry is expected to drive future expansions. Moreover, many initiatives aimed at enhancing seed distribution and farmer outreach will play a crucial role in ensuring that the benefits of high-quality seeds reach all corners of the agricultural community.

Crop focus

Cotton

Often referred to as "white gold," cotton is essential to both the livelihoods of millions of farmers and the national economy. The cotton industry significantly contributes 29.1% to total textile exports and 4.9% to agricultural output value. For the 2023-24 period, Indias cotton production is projected to reach 323.11 lakh bales, each weighing 170 kg, from 124.69 lakh hectares, with a productivity rate of 441 kg of lint per hectare. Most of Indias cotton production is focused in ten key states, divided into three agro-ecological zones: north, central and south. The north zone, including Punjab, Haryana and Rajasthan, covers 12.18% of the cotton area and produces 14.49% of the total output. The central zone, comprising Maharashtra, Gujarat and Madhya Pradesh, accounts for 60.53% of the area and 58.82% of production. In the south zone, Telangana, Andhra Pradesh, Karnataka and Tamil Nadu cover 24.31% of the area and contribute 24.32% to production. Odisha is expected to produce 2.30% of the national output in 2023-24. Gujarat, Maharashtra and Telangana are the top cotton-growing states, estimated to cultivate 70.05% of the cotton area and yield 68.15% of the countrys production.

India leads globally in cotton cultivation area, with about 125 lakh hectares, representing 39% of the worlds cotton area. Despite this, India contributes only 22% to global cotton production. In contrast, China, with 28.7 lakh hectares (9% of the global area), produces 23% of the worlds cotton. Pakistan has seen a 73% increase in cotton production, from 50 to 87 lakh bales, compared to the previous year. Brazil recorded a 12% increase, from 173 to 194 lakh bales. Conversely, the USA experienced a 15% decline, with a decrease of 29 lakh bales from the previous year. In terms of productivity, Australia leads with 2239 kg/ha, followed by China (1949 kg/ha), Brazil (1823 kg/ha), Mexico (1607 kg/ha), Turkey (1556 kg/ha) and the USA (947 kg/ha). This version retains the essential information while being more concise.

Rice

Rice is a fundamental staple for a large segment of Indias population, playing a pivotal role in food security by providing a significant portion of calorie intake for millions. The cultivation of rice supports a vast agricultural workforce, offering livelihoods to countless farmers and labourers, particularly in regions where rice is a predominant crop. It serves as a critical income source for rural households, contributing to poverty alleviation and rural development. Beyond its economic significance, rice is deeply embedded in Indian culture and traditions, featuring prominently in festivals, rituals and daily meals.

Agriculture accounts for 18% of Indias National GDP, projected to reach

295.36 lakh crore in 2023-24, up from 269.50 lakh crore in 2022-23, reflecting a growth rate of 9.6%. Rice contributes 50% to the Agricultural GDP. According to the Government of Indias advance estimates, rice production for 2023-24 is expected to be approximately 123.8 million tonnes, marking a 9% decline from the previous year due to erratic monsoons and the El Ni?o effect. The top five rice-producing states are Telangana (16.6 MT), Uttar Pradesh (15.7 MT), West Bengal (15.1 MT), Punjab (14.4 MT), and Odisha (10.1 MT).

ICRA estimates indicate a 37% decline in non-Basmati rice export volumes, whereas Basmati rice exports have grown by over 10% in FY2024 amid strong demand, despite the introduction of a minimum export price by the government. In FY2023, the average export price of Basmati and non-Basmati rice increased by 26% and 9%, respectively, resulting in a 5% growth in exports despite a decline in volume. A global rice production deficit and strong demand in FY2024 are likely to keep international rice prices high. Government restrictions on rice exports and higher paddy prices in the current procurement season are expected to maintain elevated prices in FY2025. This format enhances clarity and readability by organising the information into distinct sections, each focusing on a specific aspect of rices role in India.

Maize

Maize ranks as the third most important cereal crop in India, following rice and wheat. Beyond its role as a food crop, maize is extensively used as feed and fodder and holds significant industrial value. Globally, maize is cultivated on over 188 million hectares, producing 1,423 million metric tonnes across 170 countries, with an average productivity of 5.62 tonnes per hectare. The United States and China lead global production, contributing approximately 35% and 21%, respectively.

India ranks fourth in cultivation area and seventh in production worldwide, but its productivity (2.7 tonnes per hectare) lags behind the global average. A significant portion of Indias maize cultivation involves low-yielding composites or traditional varieties, highlighting the need for rapid hybridization to boost yields.

Currently, India produces over 28 million metric tonnes of maize, with about 60% used as feed (for poultry and livestock), 14% for industrial purposes, 13% for food, 7% as processed food, and 6% for other uses, including seed. The rising demand for maize, particularly in the feed industry, has driven increased production. Maize is primarily grown in two seasons in India: the rainy (kharif) and winter (rabi) seasons. Kharif maize accounts for approximately 83% of the maize area, while rabi maize covers 17%. Over 70% of kharif maize is cultivated under rainfed conditions, facing various biotic and abiotic stresses, which contribute to its lower productivity (2,706 kg/ha) compared to rabi maize (4,436 kg/ha), which benefits from more stable ecosystems.

In recent years, the area under spring maize cultivation has expanded rapidly in northwestern India, particularly in Punjab, Haryana, and Western Uttar Pradesh, although data on spring maize is not well-documented. Informal estimates suggest an area of around 150,000 hectares. Among cereals, maize shows the highest growth rate in terms of area and productivity. Since 2010, maize productivity in India has been increasing at a rate of 50 kg/ha per year, the highest among food crops. Madhya Pradesh and Karnataka lead in maize cultivation area (15% each), followed by Maharashtra (10%), Rajasthan (9%), and Uttar Pradesh (8%). After Karnataka and Madhya Pradesh, Bihar is the largest maize producer, with Andhra Pradesh achieving the highest state productivity. Districts like Krishna and West Godavari reach productivity levels up to 12 tonnes per hectare.

Approximately 47% of Indias maize production is used as poultry feed, with the remainder divided among livestock feed and food purposes (13% each), industrial uses (12%), the starch industry (14%), processed food (7%) and exports and other uses (6%). Opportunities exist to enhance maize yields in India through the development, popularization, and adoption of new hybrids and improved technologies.

Pearl millet

Pearl millet, the fourth most widely cultivated food crop in India after rice, wheat and maize, is a climate-resilient nutricereal known for its rapid growth and minimal input requirements. It has high photosynthetic efficiency and a balanced nutritional profile, making it tolerant to adverse climatic conditions and biotic stresses. Pearl millet thrives in challenging agro-climatic conditions where other staple cereals like rice and wheat struggle to survive. It can grow in harsh environments with low soil fertility, high pH, aluminium saturation, low moisture, high temperatures, salinity and scant rainfall.

Globally, pearl millet is the sixth major cereal crop, following maize, rice, wheat, barley and sorghum. It plays a critical role in providing sustenance, fodder and nutritional stability in some of the worlds most arid and impoverished regions, particularly in sub-Saharan Africa and Asia, with India being a significant focus. The crop is cultivated over 30 million hectares worldwide, predominantly in Africa (over 18 million hectares) and Asia (over 10 million hectares). It also finds use in industries such as alcohol, fuel, starch and processed food sectors.

In the 2023-24 period, pearl millet was grown on 7.36 million hectares in India, yielding an average production of 10.67 million tons with a productivity of 1,449 kg/ha (Source: DA&FW). The primary pearl millet-producing states- Rajasthan, Maharashtra, Uttar Pradesh, Gujarat, and Haryana account for 90% of the countrys total production. Rajasthan alone contributes nearly 45%, followed by Uttar Pradesh (19%), Haryana (9%), Gujarat (9%), Maharashtra (6%) and Tamil Nadu (2%). Most pearl millet in India is cultivated during the rainy

(Kharif) season (June/July to September/ October), with some cultivation during the summer (February-May) in parts of Gujarat, Rajasthan and Uttar Pradesh and during the post-rainy (rabi) season (November-February) on a smaller scale in Maharashtra and Gujarat.

Nutritionally, pearl millet surpasses commonly consumed staples like wheat, rice, maize and sorghum. It is rich in carbohydrates, proteins, fats, fibres, resistant starch, vitamins, antioxidants and essential micronutrients such as iron and zinc. It also has a more balanced essential amino acid profile compared to maize or sorghum. Kaveri Seeds has a strong presence in the millet market with commercial varieties like KPH6112, PH6111, KPH6155, KPH6266, KPH6277, KPH6288, and KPH6122 for the kharif season, and KPH6314, KPH6311, KPH6312, KPH6310, and KPH6499 for the summer season. This version maintains the essential information while improving readability and flow.

Mustard

Rapeseed-mustard is a crucial oilseed crop in India, pivotal for addressing the countrys edible oil demand-supply gap. It ranks as the worlds third most important source of edible oil, following soybean and oil palm. Every part of the rapeseed-mustard plant holds significance for human livelihood, being used for flavouring, medicinal and preservative purposes since ancient times. India is the third-largest producer of rapeseed-mustard globally, following Canada and China, contributing around 11% to the worlds total production. In India, rapeseed-mustard is the second-largest oilseed crop, cultivated across diverse agro-climatic conditions from the northeastern to the northwestern hills and southern regions, under both irrigated and rainfed systems and in various soil types. Indian mustard accounts for approximately 80% of the total area under rapeseed-mustard cultivation in the country. From 2016-17 to 2020-21, rapeseed-mustard represented 23.2% of the acreage and 26.2% of the production among the nine oilseed crops grown in India. The average yield for rapeseed-mustard in India is about 1,499 kg/ha, higher than the combined average for oilseed crops, which is 1,265 kg/ha (2018-19). Although rapeseed-mustard is grown in most Indian states, the majority of production comes from Rajasthan (44.97%), Haryana (12.44%), Madhya Pradesh (11.32%), Uttar Pradesh (10.60%) and West Bengal (7.53%) during the period from 2016-17 to 2020-21. Nearly 74% of the crop area is irrigated.

Over the past 20 years, scientists at ICAR-DRMR and AICRP-RM have developed several improved rapeseed-mustard varieties and crop production and protection technologies. The introduction of high-yielding varieties and hybrids, along with refined production and protection technologies, has significantly enhanced the production and productivity of rapeseed-mustard in India, while also improving the quality of the produce. There remains a substantial gap of about 900 kg/ha between global and Indian oilseed brassica productivity, which can be narrowed through developing high-yielding varieties and hybrids, better resource management and supportive policy frameworks.

Wheat

Wheat is cultivated on more land worldwide than any other crop and ranks third in global production, following rice and corn. Over the past five years, Indias wheat production has surged, making it the second-largest producer globally. Research indicates that wheat and wheat flour are increasingly crucial to Indias food economy. In the 2022-23 season, wheat was planted on 320.54 million hectares in India, yielding about 110.55 million tonnes, which accounts for approximately 12% of global production. As the second most populous nation, India is also the second-largest consumer of wheat after China, with a substantial and growing demand. The primary wheat-producing states in India include Uttar Pradesh, Punjab, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Bihar, with the northern region being a major hub for wheat cultivation. Wheat production in India benefits from yield growth, crop shifts and increased cropping intensity. While fertilizer use has had a diminishing impact on yield improvement, the expansion of irrigated areas and high-yielding varieties (HYV) has played a more significant role in boosting productivity.

As population and income levels rise, along with urbanisation and poverty alleviation, a demand-supply gap for wheat could emerge, potentially increasing by 1 to 2% annually, equivalent to 0.7 to 1.4 million tonnes. Promoting rapid economic development and inclusive income growth, especially among the rural poor, could lead to a significant increase in wheat demand and trade opportunities. Kaveri Seeds has a strong market presence with wheat varieties such as KWV0222, KWV0237, and KWV0333, which are well-regarded in the market.

Vegetables

Tomato

Tomatoes are a fundamental component of Indian cuisine and are widely consumed in diets around the world. They are enjoyed fresh in salads, used in a variety of culinary dishes, and processed into products like puree, sauce, ketchup, and powder. Tomatoes are rich in vitamins and minerals, including vitamin C, potassium, vitamin K, and folate. Lycopene, a powerful antioxidant, is one of the most abundant compounds found in tomatoes. India ranks as the second-largest producer of tomatoes globally, after China, with 17% of the global acreage and 11% of the production. In the 2022-23 season, India cultivated tomatoes on 812,000 hectares, producing 20,573,000 metric tonnes, with an average yield of 25.33 tonnes per hectare (FAO STAT 2022-23). The leading tomato-producing states in India are Madhya Pradesh, with 2.82 lakh acres yielding 32.50 lakh tonnes; Andhra Pradesh, with 1.34 lakh acres producing 23.38 lakh tonnes; and Karnataka, with

1.69 lakh acres yielding 21.98 lakh tonnes. Commercial hybrid tomatoes are generally categorised into three major groups based on shape and growth habit- flat round with a market potential of 53 million tonnes, oval with 36 million tonnes, and indeterminate (ID) with 12 million tonnes.

Okra

India stands as the worlds largest producer of okra, contributing 7,253 thousand tonnes, which accounts for 70% of the global production. The crop is cultivated over an area of 554,000 hectares, yielding 6.4 million metric tonnes with an average productivity of 12 metric tonnes per hectare (FAOSTAT, 2020). The leading okra-producing states in India include Gujarat (16.65%), West Bengal (15.09%), Odisha (11.97%), Madhya Pradesh (10.86%), Bihar (10.81%) and Chhattisgarh (5.98%).¹⁵ Okra production faces challenges from viral diseases like Yellow Vein Mosaic Virus (YVMV) and Enation Leaf Curl Virus (ELCV), which are transmitted by the whitefly (Bemisia tabaci). These diseases can cause a loss in marketable yield ranging from 50% to 94%, depending on the stage of crop infection. The large number of chromosomes and polyploid genome of okra have limited the application of molecular biology tools. However, hybrids developed through conventional breeding have shown tolerance to these viruses.

The market potential for okra is significant, with an estimated total market size of 2,200 metric tonnes and a market value of

425 crore. Hybrid varieties dominate the market, comprising approximately 75% of the total share.

Gourds

The origins of gourds are not clearly known, but their domestication is believed to have occurred in Southern China and Eastern India. Gourds have been cultivated for a long time and were introduced to the New World, including

Brazil, from the Old World. They are widely available in tropical regions such as Africa, Malaysia, Thailand, China and India. The bitter gourd seed market is estimated to be between 530 and 580 metric tonnes, with F1 hybrid seeds accounting for 250 to 280 tonnes and open-pollinated (OP) seeds for 280 to 300 tonnes. Commercial OP bitter gourd cultivars yield an average of 12 to 15 tonnes per hectare, while hybrids produce between 25 and 30 tonnes per hectare. In India, the bottle gourd seed market alone is 320 metric tonnes, covering an area of 157,000 hectares, with a production of 2,572,000 metric tonnes and a productivity rate of 16.38 tonnes per hectare. The loofah seed market totals 490 metric tonnes, with ridge gourd F1 hybrid seeds at 80 tonnes and OP seeds at 80 tonnes, and sponge gourd F1 hybrid seeds at 200 tonnes and OP seeds at 130 tonnes, particularly in South Indian states like Kerala.

Bitter gourd is a staple vegetable known for its unique bitter taste and is cultivated for its immature tuberculate fruits. According to the National Horticulture Board (NHB) data for 2021-22, Indias total bitter gourd production is 1,333.55 tonnes per hectare, with Madhya Pradesh leading at 229.91 tonnes per hectare. Bitter gourds are rich in vitamins and minerals, containing 88 mg of Vitamin C per 100g. They are used in culinary dishes after stuffing and frying and can be preserved by drying. Bitter gourds have medicinal properties and are used to treat conditions like rheumatism, diabetes, asthma, and blood disorders. Fresh bitter gourd juice is recommended by naturopathic physicians, and the roots and stems are used in Ayurvedic treatments.

Sponge gourd, or luffa, is rich in antioxidants, vitamins and minerals, including carbohydrates and vitamin A. It also contains vitamin B5, potassium, manganese, copper, fibre, vitamin B6, vitamin C and magnesium. Ridge gourds are high in calcium, magnesium and zinc, low in calories, and contain 94% moisture. They provide essential nutrients like vitamins A, C, B6 and folate and are rich in antioxidants that help prevent diseases like cancer. Ridge gourds are also a good source of dietary fibre and carbohydrates, and they contain B-complex vitamins and minerals such as calcium, iron, zinc, potassium, manganese and magnesium.

Company overview

Founded in 1976, and headquartered in Telangana, India, Kaveri Seed Company Limited is dedicated to the development and distribution of hybrid seeds. The Company focuses on producing seeds for various essential crops such as maize, cotton, rice, and various vegetables, which are critical to Indias agricultural sector. Employing over 165 scientists, Kaveri Seeds conducts research in diverse agro-climatic zones across the nation. Utilising advanced biotechnological methods, the Company also strives to develop seeds that not only yield higher crop output but also adapt effectively to local environmental conditions. This focus on innovation has proven to be important for creating tailored seed solutions that improve productivity in targeted regions. Kaveri Seeds maintains a strong distribution network within India to in order to that farmers have timely access to these hybrid seeds. The Company has also expanded its market reach internationally, exporting seeds to countries such as Pakistan, Sri Lanka, Bangladesh and Vietnam, thereby supporting agricultural productivity in these areas.

The efforts of the Company are also recognised on a national level, by the Government of India, highlighting its role in the nations agricultural progress and its dedication towards increasing food security. The Company continues to focus on advancing agricultural practices through research and development, aiming to enhance agricultural practices, thereby contributing to the economic growth of India and the surrounding regions.

Operational highlights

In-house R&D

The Companys research facility is well-equipped with a biotechnology laboratory and various satellite stations dedicated to crop breeding. They play a pivotal role in improving germplasm and enhancing breeding processes. Adhering strictly to the Indian Minimum Seed Certification Standards (IMSCS), the Company conducts rigorous seed testing to ensure genetic and physical purity as well as optimal germination rates.

A meticulous research and development strategy has driven the Company to expand many new seed variants across different segments, marking significant contributions to agricultural innovation. The R&D efforts by the Company mainly uses advanced molecular breeding technologies and standardised processes that not only develop disease-resistant germplasm but also ensure stability and adaptability of the yields, in adverse climatic conditions. Furthermore, the Companys is also dedicated to innovation and implements various genetic enhancement programmes, which focus on introducing elite recombinants and new products that reduce costs and enhance quality. To determine the best products for specific targeted areas, the Company has set up field-level disease and insect screening hotspots and developed new protocols. To ensure that the seeds meet the high standards expected by modern agriculture, the Company has expanded its testing locations, allowing for comprehensive product evaluations.

Infrastructure facilities

Kaveri Seeds extensive infrastructure supports a wide-ranging operational setup for seed production and distribution activities. This includes over 170 outreach trial centres strategically positioned to conduct vital field testing and research. Which ensures that seeds perform optimally in varied climatic conditions. The maize cob drying facility has a capacity of 4,500 metric tonnes per cycle, complementing the extensive seed processing operations that have an average throughput of 115 metric tonnes per hour. The Companys Cotton processing capabilities are thorough, with a de-linting capacity of 18 metric tonnes per day and a ginning capacity of 5 metric tonnes per day.

For storage and logistics, the Company manages 10 lakh square feet of warehouse space across key locations, along with a significant cold storage capacity of 15,000 metric tonnes. This infrastructure ensures that seeds are preserved under optimal conditions and are readily available for distribution. The distribution network, comprising 15,000 client touchpoints in 18 major Indian states, enables efficient delivery of seeds to end customers. This enhances the Companys market reach and supports regional agricultural development.

Through these facilities, Kaveri Seeds ensures a steady supply of high-quality seeds, contributing to enhanced agricultural productivity and supporting the broader goals of food security and economic growth in the agricultural sector.

Growing market presence

The Companys focus on seed innovation has driven it to have a strong market presence. This in turn, contributes to higher agricultural yields. Kaveri Seeds product range includes BT cotton hybrids, maize hybrids, rice hybrids and selected rice varieties. These are well-recognised in the Indian seed market.

To ensure effective adoption and cultivation practices, the Company has developed a network comprising 65,000 farmers across 29 product locations within various agro-climatic zones in India. This network helps the Company to engage directly with farmers, offering them support and guidance to enhance their agricultural productivity. These efforts collectively support the Companys strategy to improve its market presence.

Enhanced product range

Kaveri seeds has a diverse range of Th high-yielding seeds to offer. These are tailored to unique agricultural needs. Some of its product lineup include seeds for field crops such as maize, rice, cotton, sunflower, mustard, sorghum, legumes, bajra (pearl millet) and wheat. Additionally, the vegetable segment also features seeds for tomatoes, okra, chillies, watermelon, gourds and brinjal (eggplant). The extensive product portfolio supports farmers in enhancing crop yields and meeting market demands effectively.

Breeding locations

Field crops

Vegetable crops

Geographic presence

The Companys extensive network across diverse agro-climatic zones ensure efficient consumer service and effective competition handling in the crops business.

Industry leadership

Its leadership in the industry facilitates rapid scaling and successful new product launches, maintaining its responsiveness to market demands.

Product portfolio

A diverse range of seeds for various crops, such as cotton, corn, rice and vegetables, meets broad farmer needs and reduces market dependency on single crops.

Brand strength

Strong brand recall and loyalty allow Kaveri Seeds for premium pricing, enhanced by a reputation, for quality and customer-centric practices in a competitive market.

Research and Development

Significant R&D investment by the Company, drives the development of high-yielding hybrid seeds tailored for specific environmental and agricultural needs, propelling innovation.

Quality assurance

Strict quality control standards throughout the production process ensure reliability and high performance of seeds. This enhances product trustworthiness.

Opportunities

Enhanced digital connectivity- With the rise of e-marketplaces and other online platforms, the opportunity for Kaveri Seeds to better engage with customers and efficiently market new products, increases a great deal.

Expansion into lower market egments- The entry-level market provides growth potential for the Company as customers move from unorganised sectors to licensed sectors. This allows the Company to introduce new and affordable products.

Strategic collaborations- The Company forms partnerships with local and international firms, that can combine local insights with Kaveri Seeds global processes to expand market reach and enhance its product offerings.

Adoption of advanced technologies- Innovations in agricultural technology provide opportunities for Kaveri Seeds to lead in areas like precision farming and biotech seeds.

Product portfolio diversification- Expanding its product portfolio by introducing many new varieties of seeds can help Kaveri Seeds cater to a wider range of environmental conditions and farming needs.

Focus on sustainable agriculture- Developing seeds for sustainable and organic farming can meet the increasing demand for environment-friendly agricultural products.

Challenges

Impact of climate change- The unpredictable changing of weather and climate pose challenges in developing seeds that are resilient and can perform well under adverse environmental conditions.

Commodity price volatility- Fluctuations in prices of crops like cotton and corn can affect profitability and require adaptive pricing strategies.

Intellectual property rights- In order for the Company to maintain its competitive edge in the market, protecting the innovations in seed technology from unauthorised use is very important. Intense market competition Kaveri Seeds faces competition from various market players, which challenges it to continually innovate and effectively market its products.

Challenges and research interventions

Drastic climatic changes on a global scale present significant challenges, creating new frontiers for researchers and developers to address the food and nutritional demands of the population. Factors such as climate variability, biological traits, natural resources and policy decisions contribute to the uncertainty in the acreage of major field and vegetable crops. Government policies, including the Minimum Support Price (MSP), Seed Replacement Rate (SSR) and seed distribution systems, are unpredictable, posing numerous challenges for Indian farmers, traders and researchers.

Indias export-import policies are largely driven by traders, often prioritising their interests over the benefits to farmers. This leads to a discouragement among farmers to cultivate less profitable crops, resulting in lower yields and productivity. To mitigate these constraints, innovative research strategies and out-of-the-box thinking are required, along with an urgent overhaul to fully harness the agricultural sectors potential and ensure sustainable growth.

Cotton

The 2023-24 cotton season in India was marked by erratic rainfall across all three major cotton-growing zones. Delayed rainfall in the central and southern zones led to a 2.9% reduction in the area under cotton cultivation, decreasing from 129.27 lakh hectares in 2022-23 to 125.55 lakh hectares in 2023-24. The crops performance varied across states due to fluctuating weather conditions and pest infestations. In northern Rajasthan, districts like Hanumangarh and Sri Ganganagar experienced excessive mid-season rainfall, leading to overgrowth and inadequate crop monitoring, which resulted in significant damage from pink bollworm and boll rot.

Pink bollworm has emerged as a major threat to cotton production, causing up to 30% yield loss in key cotton-producing states. Resistance to Bollgard (Cry1Ac) was first identified in India in 2010 and by 2014, resistance to Bollgard II (Cry1Ac and Cry2Ab) was also reported. In central and southern India, early occurrences of pink bollworm on BG-II hybrids have been noted over the past five to six years. Developing cotton varieties or hybrids with short-duration, compact genotypes and synchronised boll bursting is crucial to mitigate pink bollworm attacks.

The Tobacco streak virus (TSV), spread by thrips, poses another threat to cotton farming. Symptoms include chlorosis, discolouration, bronzing, necrosis, curling of leaves, dwarfing and drying of squares. TSV has been observed in northern Karnataka, the Marathwada region of Maharashtra and the Warangal, Karimnagar and Sangareddi districts of Telangana. The Company has focused its breeding efforts to systematically address both PBW and TSV challenges.

Cotton Leaf Curl Virus (CLCuD) transmitted by whiteflies, is a significant concern in northern cotton zones, characterised by leaf curling, darkened veins and cup-shaped leaf structures. Abiotic stresses such as heat, drought and salinity further hinder cotton production. To address these issues, breeding and testing locations have been recalibrated to develop climate-resilient genotypes, especially in hotspot areas where these stresses are prevalent.

Rice

Rice is a vital staple crop in India, playing a crucial role in the countrys food security. Various states implement policies to support rice cultivation, including the Minimum Support Price (MSP), which guarantees a minimum price for farmers and influences procurement strategies. Rice is often procured by state agencies or the Food Corporation of India (FCI) and distributed through schemes like the Public Distribution System (PDS) and the Mid-Day Meal Scheme.

States may also offer subsidies on inputs such as seeds, fertilizers and irrigation, alongside incentives to improve rice yield and quality. Crop insurance schemes are available in some states to protect farmers from losses due to natural disasters. States invest in research and development to create rice varieties suited to local agro-climatic conditions and promote modern agricultural technologies. Efficient water management practices are essential due to the water-intensive nature of rice cultivation.

Research interventions in progress 2023-24

Breeding and genetics: Efforts are focused on developing high-yielding, climate-resilient rice varieties that incorporate traits like drought tolerance, pest resistance and nutrient-use efficiency.

Sustainable Farming Practices: There is a push for conservation agriculture, System of Rice Intensification (SRI) and zero-tillage techniques to enhance soil health and water efficiency, along with the adoption of organic farming practices and integrated nutrient management.

Precision agriculture and technology:

The use of remote sensing, GIS and drones is being promoted for precise monitoring and efficient resource management, alongside the development of decision support systems for farmers based on real-time data and weather forecasts.

Policy interventions: Policies are being formulated to promote sustainable agriculture, water conservation and climate resilience, with incentives for farmers adopting eco-friendly practices and support for rural infrastructure development.

Collaborative research initiatives: There is a collaboration between research institutions, universities and the private sector to accelerate innovation in rice farming technologies, as well as international partnerships for knowledge exchange and technology transfer.

Maize

Challenges

Maize cultivation in India faces several challenges:

Environmental Stresses: Drought, heat, cold stress and flooding significantly impact maize production.

Soil and Technological Issues: Low soil fertility and limited adoption of modern production technologies hinder productivity.

Policy and Extension Gaps: Inadequate extension services and policy support create obstacles for farmers.

Pest and Disease Pressure: Pests such as stem borers and weevils, along with diseases, lead to reduced yields and quality.

Impacts

Rainfed Limitations: Maize production is predominantly limited to rainfed environments, making it vulnerable to inconsistent rainfall and temperature fluctuations.

Quality Concerns: High levels of mycotoxins in maize grain and low nutrient use efficiency affect productivity and yield stability.

Research Interventions

To address these challenges, several research interventions are underway:

Hybrid Development: Efforts are focused on developing improved maize hybrids with tolerance to cold, heat and drought stress.

Infrastructure and Policy: Strengthening post-harvest handling infrastructure, implementing price stabilisation mechanisms and enhancing value chains are key priorities.

Extension and Seed Delivery: Streamlining the extension system and augmenting the hybrid seed delivery mechanism are essential for better farmer support.

Genetically Modified Seeds: Appropriate policies on genetically modified seeds are needed to boost productivity.

Conservation Agriculture: Promoting conservation agriculture technologies and developing diverse cultivars are crucial for sustainable farming.

Advanced Breeding: Accelerating the breeding process through new tools and adopting modern cultivation and protection practices are vital for improving pest and disease tolerance.

Millet

Millet cultivation in India faces challenges due to its lower grain yield productivity compared to wheat, maize, and rice, with significant variations across different geographical regions. Consequently, farmers with access to irrigation often opt not to cultivate millet. Increasing resistance to insect pests, such as downy mildew and the rising incidence of blast in hybrids, presents another urgent challenge. Additionally, post-harvest, millet flour has a limited shelf life of only 5 to 7 days due to susceptibility to oxidative rancidity from free fats and sugars, posing further difficulties.

A major threat to pearl millet is the reduction in crop area, as it competes with more lucrative crops like cotton, cluster bean, groundnut and maize in many millet-growing regions. These crops are increasingly cultivated in harsher environments with marginal soils, making it challenging to grow high-yielding hybrids. Erratic rainfall, especially during the maturity phase, has reduced yields over the past few years. There is a demand for products that can manage summer heat stress and cater to the early Kharif market.

Kaveri Seeds has intensified efforts in these segments by incorporating traits for earliness and heat resistance into its hybrids and expanding testing locations in relevant geographies to develop well-suited products. The short life cycle of commercial products due to the breakdown of resistance to blast and downy mildew is another challenge, which Kaveri is addressing through its diverse germplasm and extensive testing across India.

Collaborations with the ICRISAT consortium and the use of traditional breeding methods are helping to develop materials with built-in resistance to diseases and tolerance to climatic stresses like drought and heat. The primary approach in pearl millet breeding involves strategically utilising germplasm from ICRISAT and conducting screenings across the Indian subcontinent. This has resulted in the development of numerous genetically diverse hybrids with various phenotypic traits crucial for adaptation to different ecological regions.

Mustard

The mustard cultivation in India faces a significant yield gap, with national productivity lagging behind global productivity by over 900 kg/ha. This disparity is primarily due to factors such as the low yield potential of current cultivars, differences in crop duration per season, species variations (e.g., Brassica juncea vs. Brassica napus) and susceptibility to biotic and abiotic stresses. Additionally, poor crop agronomy and field-level discrepancies between potential and actual yields contribute to this gap. To address these challenges and meet future demands for mustard product development and commercialisation, several research priorities have been established. Breeding efforts focus on developing mustard hybrids that offer high grain and oil yields. Developing medium to short-duration hybrids that fit into various cropping systems in India, especially considering current climate change scenarios, is also a priority. Creating mustard hybrids and varieties with enhanced tolerance to biotic and abiotic stresses is essential. Breeding hybrids that improve oil and meal quality alongside yield is necessary. Developing hybrids that align with various mustard cropping systems is crucial. Enhancing traits such as seed size, colour, shape, lusture and pod characteristics, including branching patterns, is being prioritised. Increasing heterosis levels through advanced technology and breeding systems is a focus. Breeding hybrids that respond well to high inputs and resources is important. Developing mustard hybrids and varieties that meet international meal quality standards is necessary to boost exports.

Wheat

Wheat is integral to global food security, serving as a primary source of sustenance and income for millions of smallholder farmers worldwide. It is cultivated on approximately 220 million hectares globally, achieving a record production of 781 million tonnes of grain. In India, wheat production has reached an all-time high, with an estimated output of 1,127.43 lakh metric tonnes, marking a significant increase from the previous year. Uttar Pradesh leads in wheat cultivation area, followed by Madhya Pradesh, Punjab, Rajasthan, Haryana and Bihar. Notably, states like Jharkhand, Madhya Pradesh and Rajasthan have seen substantial expansions in wheat cultivation areas. This growth is largely driven by increased minimum support prices and government procurement efforts. Wheat accounts for a significant portion of the food basket, contributing 36% to the total food grains produced in India. It is extensively procured by the government and distributed to ensure both food and nutrition security. As one of the most affordable sources of energy, wheat provides a major share of protein and calorie intake.

Kaveri Seeds genetic improvement programme, in collaboration with CIMMYT, focuses on selecting local and traditional materials to develop high-yielding wheat varieties with builtin disease resistance and tolerance to climatic stresses like drought and heat. The strategic use of germplasm from CIMMYT and comprehensive screening across the Indian subcontinent has led to the development of genetically diverse varieties with important phenotypic traits for adaptation to various ecological regions. This genetic diversification has been crucial in managing rust resistance epidemics, particularly in Haryana and Punjab.

Climate change poses a significant threat to wheat production, potentially reducing yields in India by 6 to 23% by 2050 and 15 to 25% by 2080. The impacts are expected to be less severe under low-emission scenarios. Variability in sowing times contributes to these challenges, with late-sown areas projected to suffer more. Kaveri Seeds is addressing these issues by conducting nutritional testing for protein content, promoting micronutrient-rich wheat cultivars and screening germplasm for heat and drought tolerance. This necessitates innovative, location-specific adaptations to enhance wheat productivity in the face of future climate conditions.

Tomato

Tomato production in India encounters significant challenges due to various biotic and abiotic stresses. High temperatures from March to June, erratic rainfall patterns and increasing resistance to pests and diseases make tomato cultivation difficult. The perishable nature of tomatoes further exacerbates these issues, leading to considerable fluctuations in market prices.

A major threat to tomato production is the Tomato Yellow Leaf Curl Virus (TYLCV), which is transmitted by the whitefly (Bemisia tabaci). This virus can cause yield losses of up to 70-100%, depending on the stage of crop growth when the infection occurs. In India, various viral strains have been identified, categorised into monopartite and bipartite (ToLCNDV) groups. The expression of Ty genes can vary based on the viral strains and the genetic background of the plants.

To address these challenges, the Company focuses on developing both strain-specific and broad-spectrum tolerance. Trials and evaluations are conducted in breeding nurseries across different regions, such as Nasik (Maharashtra) and Hyderabad (Telangana) for southern and central strains and Sonipat (Haryana) and Varanasi (Uttar Pradesh) for northern strains, to screen hybrids and lines against Leaf Curl Virus.

Tomato cultivation is also affected by early and late blight diseases, primarily during the Kharif season, with reported yield losses of up to 70-100%. The Company screens populations and hybrids in hotspot locations like Hyderabad, Bengaluru, Sonipat and Varanasi during the Kharif season to combat these diseases.

In Maharashtra, a complex viral disease involving four different viruses—CMV (48-70%), GBNV (15-31%), TCV (11-21%) and TMV (0.5-2.55%)—leads to misshapen and yellow fruits. Unfortunately, no specific research has been undertaken to address this issue.

High-temperature stress also affects fruit set in tomatoes. Screening for heat tolerance in environments like Hyderabad and Nasik helps the Company evaluate and select promising hybrids and inbred materials. These efforts aim to improve tomato resilience and productivity in the face of these challenges.

Okra

Okra cultivation in India faces challenges from geographically distinct viruses and strains that vary across regions, including the South, Central, East, North and Northeast. To address these variations, inbred development is conducted at key hotspots: Guntur, Andhra Pradesh and Villupuram, Tamil Nadu for southern strains; North 24 Parganas, West Bengal for northern strains; and Vyara, Gujarat for western strains.

The okra plant is primarily susceptible to Yellow Vein Mosaic Virus (YVMV) and Enation Leaf Curl Virus (ELCV). The focus is on developing inbred and hybrid varieties with dual tolerance to combat these challenges. Due to the short lifecycle of hybrids, replacements are needed every 2 to 3 years post-launch. Typically, 3-5 hybrids are tested in advanced stage trials (HATs) with the aim of commercialising one hybrid annually or biennially.

Challenges and strategies:

Narrow Heterosis: The Company has established two heterotic groups, hX and hY, based on yield general combining ability (GCA). The introgression of Genetic Male Sterility (GMS) into elite lines is underway.

Limited resistance sources: The complex genome and large number of chromosomes in okra limit advancements in biotechnology. The Company collaborates with the World Vegetable Center (WVC) to exploit tolerance from wild sources and handles over 100 pedigree crosses annually to develop common and durable tolerances. Efforts have begun to introgress virus resistance from wild sources.

Speed breeding: The biotech team supports the breeding process by managing 4-5 generations per year to accelerate development.

Indigenous crop and germplasm development:

Breeding programme strengthening:

The Company is enhancing its in-house breeding program by increasing segregating populations, screening them across locations, and developing multi-race tolerance. Germplasm is also being developed for markets in Africa and the Asia-Pacific regions.

Hybrid sterility: Challenges arise due to ploidy differences in cultivated-wild introgression, and negative linkages exist where fruit quality is negatively correlated with virus tolerance.

Emerging viruses: Besides YVMV and ELCV, new viruses like Tobacco Streak and Petiole Bending are emerging threats

Seasonal virus incidences:

Summer season: High virus incidences are observed in the summer across South, Central, Northeast, and coastal states. Kharif season: North Indian states experience high virus incidences during the Kharif season.

Hot-pepper

Crop diversification is a key strategy for accelerating agricultural growth in India, enhancing food and nutritional security, generating income and employment, alleviating poverty and ensuring the sustainable use of natural resources. However, unfavourable changes in chili cultivation have led to reduced income for farmers, posing significant risks and challenges.

To address these issues, research is focusing on improving pungency and colour retention in hot peppers. These advancements will enable farmers to store their produce at room temperature during periods of price fluctuation, reducing the need for expensive cold storage solutions. Challenges and research focus: Geographically Distinct Viruses and Strains: Different regions in India face unique viral challenges, particularly the Chilli Leaf Curl Virus. Kaveri Seeds has identified resistant sources and is working on understanding the inheritance of these traits, with ongoing efforts to integrate them into both female and male parent lines.

Gourds

In gourds, cucurbits powdery mildew, caused by Podosphaera xanthii, is a serious fungal disease that significantly impacts cucurbit production in both open fields and greenhouses. Disease outbreaks lead to a rapid loss of the foliar photosynthetic area, causing premature foliage loss, stunted plant growth and a subsequent reduction in fruit yield and quality. To combat this, researchers have developed 28 additional bitter gourd lines resistant to cucurbit powdery mildew (CPM). These lines, derived from various market segments and landraces, were created through inbreeding and selection.

The Tomato Leaf Curl New Delhi Virus (ToLCNDV), a bipartite begomovirus from the genus Begomovirus and family Geminiviridae, poses a significant economic threat, causing severe epidemics in bitter gourd across South Asia. Currently, no bitter gourd lines resistant to ToLCNDV are available, making this virus a major constraint on production in Asia. Severe ToLCNDV infections result in short internodes and distorted, upward-curling, often chlorotic leaves. The virus is persistently transmitted by the whitefly, Bemisia tabaci. In response, researchers have developed a bitter gourd line, Line 25, derived from a Bangladeshi landrace, which has consistently demonstrated resistance to ToLCNDV in multi-location trials.

Human Resources

Effective management of human resource is crucial for innovating and delivering exceptional products to the customers. In order to achieve this, the Company employs 1342 members across various divisions. It also upholds a strong commitment to employee development and organisational growth by regularly hosting training sessions conducted by senior industry consultants skilled in key agricultural disciplines.

The Company creates a supportive work environment to motivate the team to perform well. One of the most crucial parts of corporate culture is gaining recognition and building reputation. Keeping this in mind, the Company awards exemplary performers with the Utkrishta Puraskar to acknowledge their exceptional contributions to the Companys success. This practice not only motivates employees but also helps create a positive workplace environment.

Kaveri Seeds is focused on attracting, nurturing and retaining skilled professionals who are essential for driving innovation and maintaining competitive advantage in the seed industry. The leadership team is equipped with extensive experience and knowledge in seed and crop production. It plays a pivotal role in guiding the Companys strategic direction and building a culture of continuous learning and improvement.

Financial Performance

(In H Lakhs)

Key Ratios

Risks and Mitigation Strategies

Farmer Engagement

One of the main goals of the Company is to build strong relationships with farmers. Its farmer-centric approach is evident in its extensive research and development efforts, resulting in high-quality seeds that yield better crops and increased profits for farmers. Collaborating with farmers, Kaveri Seeds invites them to participate in field trials and incorporates their feedback into the product development process. This approach ensures the Companys products meet the evolving needs of farmers. Additionally, Kaveri Seeds also offers educational programmes for farmers to enhance their knowledge and skills, ultimately contributing to increased productivity and sustainable agricultural practices.

CSR

Kaveri Seeds takes various community development initiatives as an attempt to fulfil its commitment to social responsibility. The main focus of these initiatives remains on education, agriculture, the environment and community infrastructure. It aims to improve the lives of farmers and rural communities.

The Company has adopted villages in Telangana, building schools, providing transportation for students and establishing sports facilities. Kaveri Seeds has also invested in community infrastructure projects like roads, sewage lines and water tanks. Additionally, the Company has initiated the promotion of environmental sustainability by distributing plants.

Internal Control Systems and Adequacy

The Company has developed a framework of standards to support the implementation of internal financial controls across the organisation. These standards are designed to ensure that the controls are adequate and operate effectively. The Board of Directors routinely reviews the observations and recommendations from the statutory auditors, internal auditors, and secretarial auditors, and suggests necessary corrective actions. The Audit Committee, which includes members of the Board, assesses the sufficiency and effectiveness of the internal control systems and recommends improvements to enhance these controls. The Audit Committee, along with the Statutory Auditors and heads of Finance, is consistently updated on the findings from internal audits and the subsequent actions taken. The Internal Audit team prepares annual audit plans based on risk evaluations and carries out comprehensive assessments of financial, operational, and compliance controls. Auditing is essential for providing assurance to the Board of Directors. Important audit findings and the corrective measures taken by the management are reported to the Audit Committee.

The Audit Committee monitors the performance of the Internal Audit team quarterly by reviewing the audit plans, outcomes, and the rate of resolution of issues through follow-up actions. The Committee holds at least four meetings annually, during these meetings, it reviews the internal audit findings to ensure that the assurance and advisory functions effectively evaluate and improve risk management, control, and governance processes. The internal audit team plays a vital role in enhancing and protecting organisational values by providing 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.