Kaveri Seed Company Ltd Management Discussions

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PKVY, a key scheme started by the Government of India, supports organic farming, helping farmers with training, organic input support, and marketing. Farmers get ?31,500 per hectare over three years, with ?15,000 paid directly for organic inputs via Direct Benefit Transfer (DBT). For FY 2024-25, ?32702.68 lakh was allocated to several states under this scheme, fostering farmers advancement towards chemical-free, sustainable farming.

MOVCDNER, a special scheme that enhances organic farming in the North

Eastern states with training and helping farmers sell their organic produce.

Farmers receive ?46,500 per hectare over three years, including ?32,500 for inputs like fertilizers and seeds. Out of this, ?15,000 is given directly to farmers and ?17,500 is for planting material.

For FY 2024-25, the scheme received ?32361.43 lakh for North Eastern states. Besides PKVY, MOVCDNER has brought in 59.75 lakh hectares under organic farming in India.

BPKP is a natural farming method promoted under the PKVY scheme that focuses on using traditional, chemical- free techniques to grow crops. The idea is to use natural materials like cow dung, urine, and compost replacing chemical fertilizers, that promotes soil health, thereby decreasing farming costs for small farmers. In FY 2024-25, 4.09 lakh hectares across eight states were covered under BPKP, helping farmers switch to a more eco-friendly and low-cost way of farming.

The National Mission on Natural Farming aims to promote natural farming nationwide using environment-friendly methods. It encourages farmers to stop using chemical fertilizers, adopting natural inputs to protect soil and water.

The mission is still in the early stage of planning and setup. Once fully launched, it predicts to help farmers deploy healthier, therefore, sustainable farming practices.

The seed market in India is worth about USD 3.82 billion in FY 2024-25. Hybrid seeds make up around 70% of the market because of their better yields, and the resistance against pests, and poor weather conditions. Most farming in India is done in open fields, covering nearly the entire market. However, protected farming is advancing due to implementation of new technology. Key trends include more use of hybrid seeds, better breeding methods, rising interest in protected farming, and utilising resources wisely, and farming in a sustainable way.¹²

2lProduction: Horticulture Crops: Vegetables: Bottle Gourd: Bihar I Economic Indicators I CEIC ²²Production: Horticulture Crops: Vegetables: Bitter Gourd: Chhattisgarh I Economic Indicators I CEIC

(Rs. in crore)

Kaveri Seeds gives paramount focus on its Research and Development (R&D), a key part of the Companys growth.

The Government of India has officially recognised its R&D work since 2001.

This shows that the Company has been serious about research for a long time. R&D further plays the role of a catalyst in helping the Company reach its original goal of promoting Indias Green Revolution. Kaveri Seeds works diligently to develop the right kinds of hybrid seeds that meet the needs of farmers. This has improved crop yields, thereby increasing farm productivity. Their research further ensures food security for people.

The Company has built strong infrastructure for carrying out research.

It owns more than 600 acres of research farms across different weather zones in India. These include over 15 main and smaller research farms that are used to test different types of seeds. Kaveri Seeds has special breeding stations nationwide to prioritise key crops namely cotton, maize, rice, pearl millet, and vegetables— based on the regions demands.

They possess a modern seed testing laboratory wherein seeds are checked for quality, and germination. A high-tech biotech lab is utilised for more advanced research and testing.

Kaveri Seeds with a large and skilled R&D team of around 100 people including over 20 scientists , assist with advanced research in the biotech laboratory.

The Company combines old-style plant breeding with modern science to make better seeds,. which develops high-yielding seeds that can withstand pests, diseases, drought, and heat.

The Companys strategic approach to breeding aims to growing more crops with fewer resources.

The Company uses the latest tools and techniques in its breeding programmes, including special methods like Marker Assisted Selection (MAS), Rapid Generation Advance (RGA), and DNA testing. These foster stronger seeds that are more resistant to disease and weather changes. For instance, the Company uses these tools to improve maize and rice for drought resistance and disease control. They also develop cotton with Bt genes to fight pests. New seeds undergo frequent tests under different conditions before launch. Farmers and the sales team give feedback during these tests. Each season, Kaveri Seeds runs about 100 trials to compare its seeds with other brands, and to check for strengths like stress tolerance and better growth.

Kaveri Seeds leverage strong facilities for processing, and storing seeds. It manages seven big, modern processing plants in

strategic regions of India. These plants include a large unit for drying maize cobs. The Company additionally has modern warehouses that stores large amounts of seeds safely in varied weather patterns.

Kaveri Seeds has likewise constructed a strong setup to execute its research work. It operates more than 15 main, and smaller research farms nationwide, covering over 500 to 600 acres of land. These farms situated in different climate zones, are used to evaluate new seed types. The Company has further developed special breeding stations to improve certain crops in different regions,including 5 stations for maize,

8 centers for rice, and other stations for pearl millet and vegetables.

The Company owns advanced laboratories for assessing seed quality, and researching. One of its labs in Pamulaparthy, examines seeds for their purity and growth. The testing follows Indian seed standards. Kaveri Seeds also has a high-tech biotechnology lab with modern machines,assisting with their advanced seed development programmes. This promotes research methods that make seeds stronger, and therefore, more suitable for different farming needs.

Kaveri Seeds being a leading seed Company in India, with a strong growing market presence nationwide, works with

over 1,00,000 farmers who grow seeds on around 65,000 acres of land across 12 different climate zones. The Company has a wide distribution network covering more than 23 states, making its products available widely. Its product range includes major crops like maize, rice, cotton, bajra, sunflower, vegetables, and jowar. This crop diversity helps reduce risk, and supports stable growth, even when farming trends fluctuate. Kaveri Seeds is among the top three players in most of these crops, and many of its hybrid varieties are well-accepted by farmers.

The Companys business is growing steadily, especially in non-cotton crops. Maize, hybrid rice, and selection rice have all displayed strong growth, with higher volumes and revenues. New products play a crucial role, especially in crops like bajra and maize, where their share in total sales is increasing. Kaveri Seeds is further expanding its export business, predominantly in sunflower, rice, and maize, and assessing growth potential in African and Southeast Asian countries. Despite exports facing some temporary issues, the Company predicts to improve upon them, thereby adding it to a bigger part of its total business. Close connection with farmers, strong network, and steady launch of new products fosters growth in its market presence both in India and abroad.

Kaveri Seeds has a strong and wide- ranging product portfolio in key Indian field crops like Maize, Rice, Cotton, Bajra, Sunflower, and Jowar. The Company is among the top 3 players in most of these crops, offering over 200 hybrids, with some of the top-performing ones in BT cotton, maize, and rice. Emphasis is on launching new hybrids that have better yield and performance. In crops like Bajra

and Maize, new products are becoming a larger part of total sales up to 75.79% in Bajra and 52% in Maize. While the share of new products in cotton is still low (10%-15%) due to older hybrids, the Company anticipates a rise to 30%-50% in upcoming years. Kaveri Seeds has robust R&D that sustains this growth by creating hybrids suited to different weather and pest conditions. The Company further prepares for the next wave of BT cotton technology (BG3), which could additionally boost its product range and market share. As for vegetables, Kaveri Seeds has displayed steady growth in its presence

with attention to beetroot, tomato, ridge gourd, sponge gourd, and marigold.

These crops have recorded commendable performance. The Company further exports some vegetable seeds in small quantities. While the vegetable business is smaller compared to field crops, it is growing at over 15% Year-on-year(YoY). The Company moreover, conducts international trials for its vegetable hybrids, the results being successful. This exhibits the Companys potential for its vegetable seeds to expand its product reach as it continues to gain attention both in India and in other countries.

More area under cultivation, and outstanding product performance are driving sales of maize and rice.

International expansion is creating fresh income opportunities, particularly for sunflower, rice, maize, and vegetables.

Newer high-yielding hybrids are being well accepted by farmers, therefore,boosting sales.

Approval of new cotton technology (BG3) could increase market share, and bring back peak cotton volumes.

A strong pipeline of new products backed by in-house R&D, encourages future advancement.

The booming vegetable seed market offers opportunities for diversification and revenue growth.

Gradual shift towards hybrid rice adoption shall potentially lead to long-term sales growth.

New processing plants, and increased seed production prepare the Company to accommodate increasing demands.

Most revenue arrive in the first quarter, making the business highly seasonal.

Cotton segment faced multiple issues for reduced acreage and product availability.

Government pricing limits in cotton restrict the Companys ability to adjust for rising costs.

As input costs for seeds increases, pressure on profit margins further heightens.

Weather changes may disrupt seed production and inventory planning.

Many new hybrids from other players hinder maintenance of leadership without constant innovation.

Political unrest in export markets like Bangladesh may affect sales.

Hybrid rice adoption is slow due to farmers sticking with existing varieties that still perform well.

Kaveri Seeds operates in a complex agricultural environment, however, it evolves via thoughtful strategies, and strong research efforts. The Company works around seasonal sales patterns, strengthening its crop portfolio, and expanding its presence in non-cotton segments. While cotton has faced some pressure from changes in planting trends, and price regulations, Kaveri Seeds continues to address these with better product planning, prioritising new hybrid development. The Company further manages rising production costs by improving operational efficiency, and shifting to crops where pricing is more flexible. Even in a competitive market, Kaveri Seeds sustains farmer trust through quality products and responsive support, while steadily growing its presence in exports despite occasional regional challenges.

A key strength of Kaveri Seeds lies in its strong research foundation. With multiple breeding centres across India, with a dedicated team of scientists, the Company develops high-performing hybrids that suit various climates, thereby resisting common pests and diseases. The Companys approach combines traditional breeding with modern tools like molecular

techniques and genetic mapping, improving development of seeds that are both productive, and reliable. Each hybrid goes thorough testing, and farmer feedback trials ensuring its performance in real-world conditions. Kaveri Seeds has a robust pipeline of new products across crops, most of which are already gaining popularity, and this continuous innovation supports long-term growth across both field and vegetable segments.

Cotton, called "white gold," being one of the most significant crops in India, plays a crucial role in farming, industry, and trade. Cotton is used in numerous ways from making clothes to industrial products, supporting millions of farmers and workers across the country. It is a key part of Indias textile exports, valuable to the agricultural sector. In recent years, cotton farming has witnessed some ups, and downs for weather changes, pests, and other crop options. Still, India sustains itself as one of the top cotton-growing countries in the world. For the FY 202425 season, the Indian government, with the Committee on Cotton Production and Consumption (COCPC), reviewed the cotton situation, discovering that there will be enough cotton for the textile industry. The milestone this season being on increasing the yield per acre, thereby, improving cotton quality, and making India a top supplier in the global market.

India is forecasted to produce 299.26 lakh bales (of 170 kg each) of cotton in FY 2024-25. This will come from 113.6 lakh hectares of land, producing an average yield of 448 kg per hectare. Being a slight decrease than last year, cotton availability remains strong. The Central Zone, which includes Maharashtra, Gujarat, and Madhya Pradesh, leads in both area and production, making up approximately 61% of the total in both categories. Even though the area in this zone decreased slightly, it predominantly contributes. Gujarat, Maharashtra, and Telangana together make up nearly 73% of the total area, and production, making them the top cottongrowing states. In the North Zone Punjab, Haryana, and Rajasthan, both area and production reduced more sharply, but it still contributes around 11% of the total.

Globally, India remains the country with the largest area for cotton, at 11.8 million hectares, and ranks second in total production for FY 2024-25. China being the top producer, growing 31.75 million bales (of 480 lb each) from 2.90 million hectares, with increased yield of 2384 kg/ha. India is anticipated to produce 25 million bales, about 20.67% of the worlds cotton, with a yield of 461 kg/ha. Brazil and the USA follow, with 17 million and 14.41 million bales respectively. Countries like China, Australia, Brazil, and Turkey have much higher yields than the world average of 854 kg/ha.

To preserve cottons health, disease checks were done in 364 villages across 42 districts in 9 major cotton-growing states. In the North Zone, Cotton Leaf Curl Disease was registered in low levels in Haryana and Rajasthan but recorded more gravely in Punjab later in the season. Root rot was further found in small amounts in Haryana. In the Central Zone, like Maharashtra and Gujarat, diseases like grey mildew, bacterial leaf blight, and alternaria leaf spot were recorded.. Some regions further reported low levels of para wilt, target leaf spot, and moderate boll rot. Pest monitoring was carried out, focusing on common pests like jassids, whiteflies, thrips, and different types of bollworms, which supplement in taking timely action for protection of crops, and healthy production.

Rice being one of the most chief food crops in India, is grown all year round in three seasons: kharif, rabi, and summer. As of March 2025, rabi rice was being harvested, while summer rice sowing had begun. India has now become the worlds largest producer of rice, ahead of China, with an estimated output of 147 million metric tonnes in FY 2024-25. According to official estimates, domestic rice production for the kharif and rabi seasons (excluding summer) is 1364.37 lakh metric tonnes. The top rice-producing states this year are Uttar Pradesh, Telangana, Punjab, West Bengal, and Madhya Pradesh. India with strong stock position, has rice stocks at 676.04 LMT, much higher than the required buffer. Procurement also remains strong, with FCI buying 526.03 LMT of rice. On the global front, rice exports touched 160.11 LMT in FY2024-25, and USDA predicts India to export 24 million tonnes this year. Prices have remained steady, even dropping slightly in FY 202425 than last year, while staying above the Minimum Support Price (MSP). Inflation for rice stands lower, both for consumers and wholesalers, indicating stable supply and pricing.

In FY 2024-25, several new rice varieties were released, promoting growth of better crops for farmers. The Central Rice Research Institute (CRRI) released 16

new varieties approved by the Central Variety Release Committee (CVRC) and one by the State Variety Release Committee (SVRC). These include CR Dhan 329, CR Dhan 322, CR Dhan 331, CR Dhan 332, and others. Many of these varieties are suitable for different regions like Odisha, Bihar, Jharkhand, West Bengal, Assam, and Tripura. For example, CR Dhan 809 was notified for six states, and CR Dhan 810, also known as Gayatri Sub-1, is suitable for flood-prone areas. These new varieties designed to resist common rice pests, and diseases such as Brown Planthopper, neck blast, and bacterial leaf blight, while some being tolerant to submergence, therefore, well-suited for modern farming practices like Direct Seeded Rice (DSR), and aerobic conditions. In addition to released varieties, 287 promising new rice lines were nominated for testing in 2024, displaying core focus on improving rice farming in India.

Scientists develop better rice varieties, and hybrids that give higher yields, with good quality, capable of handling tough weather, and disease conditions. They use both traditional methods, and new technologies like DNA tools, gene editing (like CRISPR), and fast breeding methods. The goal is to make rice that grows well in different types of farming, including dry or direct-seeded fields, with better nutrition, like more iron or zinc.

Research is focused on making rice farming more productive, and ecofriendly. New tools like sensors and nanotechnology are used to manage water, and nutrients more precisely. Scientists further improve upon ways to deal with weeds, and leftover crop waste, and on designing small machines to help small farmers. They examine with new varieties, assessing their growth in dry

direct-seeded conditions, creating smart systems to manage water, and fertilizers more efficiently.

This research helps in protection of rice from pests, diseases, and harmful worms. Scientists examine the rice types that naturally resist these problems, and study how pests behave with climate fluctuations. Looking for better ways to monitor pests,and predict appearance, their goal is to mix safe pesticides with natural methods of sustaining crop health. They further inspect new rice types to assess which ones resist pests like Brown Planthopper and nematodes.

This area emphasises on making rice resist against weather problems like drought, floods, salty soil, and standing water. Researchers improve how rice plants utilise sunlight for growth, and maintenance of good nutrition, even in bad conditions. They use gene editing to develop strong rice plants, studying their performance in the lab, and in the field. Some rice types in progress, shall be brought about, meant to be healthier, namely rice with a low glycemic index or higher levels of nutrients.

This work brings new rice varieties and technologies to farmers. The team shows farmers how to use the new methods, and collects feedback to improve them. They further study the willingness of farmers in using these new varieties, to check how well the information is shared via YouTube videos and other platforms. They identify what consumers like, inspect the farming trends, and study how new rice types can help farmers earn more.

India is predicted to produce 372.50 lakh metric tonnes (LMT) of maize in FY 2024-25 (Kharif and Rabi), which is less

than what was produced in the last two years—376.65 LMT in FY 2023-24 and 380.85 LMT in FY 2022-23. This drop in production can potentially hinder in meeting the countrys maize needs.

Although mandi prices in most maizegrowing states were higher than the Minimum Support Price (MSP), the average price across India in FY 2024-25 was ?2176.61 per quintal, slightly below the MSP of ?2225.00,indicating that some farmers may not be receiving the minimum price promised by the government.

Prices of maize rise quickly. In FY 2024-25, maize inflation was 8.12% Consumer Price Index (CPI) and 9.58% Wholesale Price Index(WPI) than last year. This makes maize more expensive for consumers, and for industries using maize, like poultry and starch makers.

Between April 2024 and January 2025, India exported significantly lesser maize than before, while imports increased a considerable amount. This change suggests Indias dependence on maize from other countries, possibly because of lower production in Indiaand, cheaper maize in the global market.

In FY 2024-25, India exported only 4.81 lakh metric tonnes (ThMT) of maize. Therefore, a big dip of 65% ,less than the same time last year (13.89 LMT). Export earnings further dropped by 58%,Indian maize being more expensive than in the global market, propelling buyers to chose other sellers.

In FY2024-25,maize imports jumped to 9.44 LMT from 0.10 LMT last year. This hike is due to global prices dropping, and Indias dearth in producing enough maize. Thus, imports became a significant way of meeting domestic demand.

To address these challenges, several research interventions are underway:

Scientists released 21 new maize varieties and hybrids that produce high yields, growing in different regions. These varieties are better at resisting common pests and diseases like stem borers, leaf blight, charcoal rot, and fall armyworm. Further research is being carried out for finding good-quality maize types by studying different maize plants.

Research is focused on controlling major pests like the fall armyworm and stem borers. New methods further test which maize types can fight these pests. Scientists even use DNA studies, and advanced tools to find maize plants that naturally resist these insects. They are additionally testing a non-chemical method with gene-based technology for pest control.

Maize is grown with other crops like pulses makes farming more productive, and eco-friendly. Systems like maize- wheat-mungbean improve yields, income, and soil health while reducing harm to the environment, making it a better system than traditional farming methods.

To save water and fertilizers, new methods like drip irrigation are being tested, using half the normal amount of some fertilizers, thereby, producing good yields. Conservation tillage and sprinkler irrigation, further improve crop output, save resources, and keep the soil healthy.

Normal maize lacks key nutrients, so scientists have further developed Quality Protein Maize (QPM) with more of the significant amino acids like tryptophan and lysine. Five QPM hybrids have been developed, including one suited for the hills of Uttarakhand, that matures early, with rich nutrients.

Post-harvest machines for farmers

To reduce the hard work after harvesting, machines like the Vivek Maize Sheller, and a power tiller-operated maize harvester have been produced. These machines help small farmers save time by making cob picking, and shelling easier and faster.

Millet farming and processing in India face challenges like low crop productivity, mainly because of restrained access that farmers have to high-yielding seeds. After harvesting, turning millets into food requires the grains to go through several steps of removing the husk, cleaning, and polishing. Some millets need extra steps to ensure that the grains remain nutritious, and are properly processed. It is rather hard to create simple, local processing machines as each type of millet is different in size, shape, and texture. Even the same type of millet can change based on where, and how it is grown, which makes processing all the more difficult.

A key issue of hindrance in the supply chain after processing, is the inconsistency between the availability of millets, and the actual requirement of it, consequently affecting, the earnings of the farmers. Processed millets and flour being easily prone to spoilage, due to their natural enzymes, leads to bitterness and a foul smell. Moisture further affects the quality, thus, requiring proper storage. Furthermore, weak distribution systems, and low public awareness about millets, make them harder to reach their customers. Therefore, leading to more wastage and lower earnings for farmers. Generally, competition from other grains and restrained demands make it further challenging for farming of millets.

Kaveri Seed Company solves some major problems in millet (bajra) farming in India, particularly low crop yield, and poor access to healthy seeds. The Company puts emphasis into research for developing improved quality of bajra hybrids that grow well, and give higher yields.

The Company has breeding centres in different parts of India, utilising smart tools like Marker Assisted Selection (MAS) to create better seeds. Many farmers now use these new hybrids, evident that they function effectively. Kaveri Seeds works with over one lakh farmers across various regions, and has seven seed processing plants, keeping extra stock ready to meet demands, with a wide network across 23 states, making their seeds easily accessible to farmers.

To deal with the mismatch between the quantity of bajra grown, and the market demands, Kaveri Seeds carefully tracks crop trends, planning its seed production in advance. They try to understand what farmers, and buyers look for, to guide them in making seeds that meet those demands. The Company further conducts programmes to educating farmers on improved seeds, and thereby, building trust. However, their work predominantly focuses on farming, and seed supply.

In the FY 2024-25 mustard season, unseasonal rainfall during the flowering and pod-filling stages, specifically in key growing regions of Rajasthan and Haryana, caused significant crop damage. The excess moisture led to flower drop, and poor pollination, directly reducing the formation of pods and seeds. Additionally, the wet conditions favoured the spread of diseases like white rust and Alternaria blight, further weakened the plants, decreasing yield. These factors, with the unfavourable weather, and increased disease incidence, resulted in an evident decline in mustard production for the season.

The Company therefore takes steps to address the challenges faced by mustard growers, predominantly due to changing weather patterns, with the emergence of new pests and diseases. The Company recognises that climate change brings new challenges for crops like mustard, therefore, to combat , Kaveri Seeds is aimed at developing high-quality mustard hybrids, more resistant to pests and diseases, and better suited to varying

weather conditions. Their research utilises advanced breeding techniques to create varieties that can withstand pests, diseases, and climate-related stress.

The Company further runs awareness programmes to educate farmers about new high-yielding mustard varieties, and improved farming practices. Together these initiatives aim to bridge knowledge gaps, particularly regarding pesticide use, and seed treatment, being common concerns among mustard farmers. The Companys efforts in developing stronger crops, and educating farmers are key to mitigating the challenges posed by changing weather and pest outbreaks.

In FY 2024-25, wheat production in India sustains its crucial role in food security, assisting millions of smallholder farmers, thereby contributing significantly to the countrys agricultural output. Indias wheat production has displayed resilience, despite ongoing challenges, with an estimated output of approximately 1,140 lakh metric tonnes, reflecting steady growth than the previous year. States like Uttar Pradesh, Madhya Pradesh, Punjab, and Haryana remain key contributors to this production, with Madhya Pradesh and Jharkhand recording notable increases in wheat-growing regions. The expansion in wheat cultivation is driven by favorable government policies, including increased Minimum Support Prices (MSP) and procurement strategies, aimed at ensuring food security.

Climate change continues to pose a major threat to wheat production with unpredictable weather patterns, leading to shifts in sowing, and harvesting times. Particularly, the extreme temperatures, delayed monsoons, and early heat stress are rising concerns. However, research and development efforts by Kaveri Seeds further help mitigate these impacts. Their ongoing collaboration with International Maize and Wheat Improvement Centre (CIMMYT) has further advanced the development of drought, and heat- resistant wheat varieties ensuring greater resilience to the changing climate.

Additionally, Kaveri Seeds focus on genetic diversification leads to the creation of wheat varieties, with enhanced resistance to rust, particularly affecting the regions of Haryana and Punjab.

This diversification plays a critical role in managing the lasting rust resistance challenges, while boosting productivity.

Furthermore, the Company has prioritised the development of micronutrient-rich wheat varieties, addressing both the challenges of climate and simultaneously, improving the nutritional quality of wheat for consumers. In response to the growing threat of climate change, the Company is also increasing efforts to conduct extensive screening of wheat germplasm for heat,and drought tolerance. As the challenges posed by climate variability become more pronounced, the Company improves upon its breeding strategies to create location-specific, climate-resilient wheat varieties, that help safeguard future production, and strengthen Indias position in global wheat markets.

As a major contributor to Indias food security, wheat continues to play a vital role in feeding the nations growing population, while Kaveri Seeds efforts in wheat research and development aim to secure higher yields, better nutritional outcomes, and climate resilience for the upcoming years.

Tomato farming in India faces two significant challenges, namely, price changes and high wastage post harvest. Tomato prices often spike up and down quickly. Even a trivial problem like heavy rain or a delay in supply can cause prices to shoot up. Prices stay usually low, however, when most of the harvest is produced, the prices tend to increase. During the main harvest, there is an influx of tomatoes reaching the markets simultaneously, leading to a surplus, or glut, which causes prices to drop. Consequently, farmers face big losses. Poor transport systems, and large numbers of middlemen worsen the situation, adding to price instability.

Another major issue being large amounts of wasted tomatoes, as estimated about 30-35% of tomatoes at an yearly rate, with fresh and processed tomatoes. Bad weather, like sudden heat or heavy rains, damages the crop, increasing wastage.

A big chunk of this loss occurs after the harvest, due to not enough cold storage facilities. Tomatoes further not handled or packed with proper care, including transportation causes makes them more prone to spoilage.

The Company supports tomato farmers mainly by developing and promoting improved seed varieties like KTH-354, KTH-355, and KTH-304. The Company conducts research to create better tomato hybrids that produce high yields, can handle pests and diseases, and grow well in different weather conditions. The Companys research center in Guntur focuses on vegetable crops, testing new varieties to see how they perform compared to others. The Company further works with the World Vegetable Centre to collect good-quality tomato seeds, and supplements in creating strong and healthy hybrids. These efforts may not directly mitigate price drops or postharvest losses, but healthier tomatoes can reduce damage before harvest, possibly improving quality after harvest. The Company also conducts awareness programmes, educating farmers about new seeds and better solutions to grow crops. These programmes may help farmers utilise good farming methods that reduce crop loss.

Indian farmers growing okra face several problems, particularly for pests and diseases. One of the major threats is the infestation of Yellow Vein Mosaic Virus (YVMV), that spreads by whiteflies, severely reducing crop yield, and quality. Farmers further deal with pests like jassids, aphids, and fruit borers, which destroy leaves and pods. These pest outbreaks often worsen with rising temperatures, and erratic weather, leaving many farmers incapable of managing these issues given the lack of awareness, and limited access to

resistant seed varieties, and effective crop protection methods.

Another headwind that affects is related to market, and post-harvest issues.

Okra is highly perishable, and without proper handling, cold storage or fast transportation, a major portion of the harvest may spoil before reaching markets. This leads to post-harvest losses and low profits. Price fluctuations caused by oversupply in peak season, and low demand in off-season further affects farmers earnings. Furthermore, limited access to stable markets, and reliance on middlemen often leads to farmers receiving lower prices for their produce.

The Company has created two groups of plants, called hX and hY, based on their ability to produce high-yielding hybrids. They are also working on adding a special trait called Genetic Male Sterility (GMS) into their best plant lines to help make hybrid seed

The Company is working to solve the problem of limited resistance to pests, diseases, and weather stress. The team of scientists is developing strong seed varieties that can grow well even in difficult conditions. The Company test these seeds in different places to make sure they can handle pests and rough weather. For example, in maize and rice, the Company is adding special traits to make the crops fight diseases better. The Company is also making cotton seeds stronger using both traditional and modern methods.

The Company does not directly mention "speed breeding," but they are using a method called Rapid Generation Advance (RGA). This method helps them create new seed varieties faster. It lets them grow more crop generations in a shorter time, which helps bring better seeds to farmers quickly.

Chilli farmers in India face several challenges, largely due to pests, diseases,

and weather-related stress. Common diseases include anthracnose and viruses like Chilli Veinal Mottle Virus (ChVMV), Cucumber Mosaic Virus (CMV), and Chilli Leaf Curl Virus (ChLCV), while pests like Thrips parvispinus and root- knot nematodes are also detrimental to crops. Farmers growing chillies for export face further difficulties for strict rules on pesticide usage and quality standards. Dearth of cold storage, and poor transport systems further lead to crop damage, and losses. Additionally, changes in market regulations have affected chilli prices, and farmer incomes at trading centers.

Gourd farmers in India face significant challenges resultant of various diseases affecting the crops. For instance, sponge gourd cultivation is severely impacted by the Tomato Leaf Curl New Delhi Virus (ToLCNDV), which can lead to complete crop loss under epidemic conditions. Similarly, bitter gourd farmers in Kerala have reported high incidences of Bitter Gourd Mosaic Virus (BGMC), with some areas experiencing up to 100% disease incidence, leading to total crop failure. Bottle gourd cultivation in Ladakh is threatened by Fusarium wilt, a fungal disease that poses a significant threat to crop health. Additionally, pointed gourd farmers struggle with issues like poor pollination, and dearth of high-yielding varieties, which affect productivity.

To mitigate these challenges, researchers are actively developing disease-resistant gourd varieties, implementing integrated disease management strategies. For sponge gourd, eight genotypes have been identified that consistently exhibit high and stable resistance to ToLCNDV across multiple environments. Studies have assessed the prevalence of BGMC in bitter gourd and identified tolerant varieties to help farmers select better- suited cultivars. For bottle gourd, research highlights the importance of disease management strategies in high-altitude regions like Ladakh to mitigate the impact of Fusarium wilt . Advancements in plant disease management, like development of hybrid fungicides, and the utilisation of

deep learning-based disease diagnosis, are being explored to enhance early detection, and control of plant diseases.

The Company values dedicated teamwork of their skilled employees, who play the role of a catalyst, adding to Companys steady growth. Kaveri Seeds works hard to locate, train, and keep the right talent to supplement its long-term goals. The Company has more than 850 employees, including a leadership team with strong experience in the seed, and agriculture industry. A predominant part of the Companys team includes over 100 scientists, even several with

PhDs, operating in areas like plant breeding, biotechnology, agronomy, and seed technology.

The Company fosters a work environment promoting learning and skill-building. It offers training for improvement, both for technical knowledge and communication, and management skills. Senior experts regularly conduct knowledge sessions on topics like plant breeding, seed science, and agronomy. Scientists are further trained in new research areas with technical guidance. Staff involved in product testing receive regular training on management of crops, and collection of data effectively. These efforts assist the team staying up to date, thereby improving their performance in different roles.

To keep employees motivated, the Company conducts programmes that recognise and reinforce hard work. One such programme being the Utkrista Puraskar, which honors top performers across departments, particularly those who support the Companys sustainability goals. Long-serving employees are further appreciated for their loyalty. In FY25, the Company witnessed an increase in employee costs, predominantly due to regular salary hikes (around 8-9%), and hiring more staff to support growing work in production, testing, processing, and sales. With these steps the Company plans to meet rising demand, and keep delivering quality products.

The Company sees farmers as the core of its business, thereby trusting that working closely with them improves farm productivity. Therefore, significant effort is given into the Companys management for connecting with farmers. The Company focuses on building long-term relationships with farmers to help them yield better results from their fields, which consequently promotes the Companys growth.

One of the key ways Kaveri Seeds engages with farmers is via product testing and development. Farmers are invited to visit demonstration plots wherein they compare Kaveris variety of seeds with other popular options in the

market. Their feedback on yield, strength against pests and weather, and overall performance is gathered, and used before launching any new product. This approach helps the Company create products that truly match farmers needs and local conditions.

The Company further conducts awareness and training programmes in different regions. These sessions teach farmers about new, high-yielding seeds, and the right farming methods to use in their areas. Kaveris team and Company leaders often participates in local agricultural events, sometimes in partnership with government departments and universities. These efforts assist farmers in staying updated on the latest farming practices, thereby making better choices for their crops.

The Company being farmer-centric, upholds the rural communities where it works. As a part of its social responsibility, the Company has adopted three villages in Telangana Gatla Narsingapur, Ramnagar, and Bolloni Palli focusing on education, agriculture, and improving the environment and local facilities including building school infrastructure, giving scholarships, donating books, providing school buses, and sponsoring awards in agriculture. The Companys has further set up a mineral water plant, improved roads and drainage systems, and carried out tree-plantation drives.

In agriculture, Kaveri Seeds conducts training programmes on seed production

in maize and rice, encouraging farmers to grow their own seeds through a special self-seed production programme. Thus, improving farmers knowledge on better farming methods, productivity, and their income. While separate from its regular business work, these community programmes display the Companys strong connection with farmers, and the support towards their well-being in the long run.

The Company has put in place a set of standards to manage its internal financial controls. These standards ensure proper functioning of all controls to protect the organization. The Board of Directors regularly reviews the findings and suggestions from the statutory auditors, internal auditors, and secretarial auditors. Based on which, the Board recommends actions to mitigate issues. The Audit Committee, including members of the Board, checks if the internal control

systems are effective and suggests ways to strengthen them.

The Audit Committee works closely with the Statutory Auditors, and the Finance team, staying updated on the results of internal audits and the steps taken afterwards. The Internal Audit team creates yearly audit plans based on potentially risky areas.

They carefully check financial, operational, and legal controls across the Company. This auditing process provides the Board of Directors confidence in the management. Any major findings and the actions undertaken to fix them are shared with the Audit Committee.

The Audit Committee reviews how well the Internal Audit team operates with every quarterly meetings throughout the year.

It checks the audit plans, the results, and how quickly problems are resolved. These meetings guide the team in ensuring the correct inspection, and mitigation of the risks, with proper adherence to rules. The Internal Audit team plays the role of a catalyst in giving clear, fact-based advice to improve the Companys performance and protect its values.

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 2024-25.