Nirman Agri Genetics Ltd Management Discussions

Industry Structure and Development:

Indian Economy

India has around 159 million hectares of net sown area. The land is primarily used for crops like rice, wheat, sugarcane, and pulses. However, land productivity varies widely across regions. Major food crops include rice, wheat, maize, and pulses. India is one of the worlds largest producers of rice and wheat. Important cash crops include sugarcane, cotton, tea, and spices. India is also a leading producer of various fruits and vegetables. While India has made significant strides in improving agricultural productivity, there is still considerable variation in yields between different regions.

Efforts are ongoing to enhance productivity through improved technology and practices. Approximately 45% of the total cropped area is irrigated. The sector relies heavily on monsoon rains, and variability in rainfall can impact agricultural output. There are ongoing efforts to improve irrigation infrastructure and water management. The Indian government implements various schemes and policies to support agriculture, such as the Minimum Support Price (MSP) system, subsidies on fertilizers, and crop insurance schemes. Initiatives like the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) aim to improve irrigation facilities.

Agriculture is highly vulnerable to climate change, with unpredictable weather patterns, droughts, and floods affecting productivity. Issues such as soil erosion, salinization, and nutrient depletion are significant challenges. Farmers often face challenges related to access to markets, fair pricing, and storage facilities, which can impact their income.

The Indian seeds industry has emerged as a significant contributor to the countrys agricultural growth and food security. With a market size of over ^20,000 crores, it plays a crucial role in providing high-quality seeds

The Indian seeds industry is a dynamic and critical component of the nations agricultural sector, with a market size of over $7.8 billion in 2024 and projected growth to $19 billion by 2033. This expansion is driven by several key trends, including a growing population, the commercialization of agriculture, and the widespread adoption of high-yielding, hybrid, and genetically modified seeds. The private sector plays a pivotal role in this growth, with significant investment in research and development to create new seed varieties that are more resilient and productive. This has led to a major shift in the market, particularly in high-value crops like vegetables, maize, and cotton, where private firms have a dominant share.

Despite its rapid growth, the industry faces significant challenges that threaten its sustainability. Seed piracy and the proliferation of counterfeit seeds remain major concerns, undermining the intellectual property rights of seed developers and jeopardizing farmer livelihoods with sub-standard products. Furthermore, climate change and evolving pest resistance are making it difficult to maintain consistent crop yields. The existing regulatory frameworks and seed certification processes can also be complex and often fail to protect farmers effectively. A persistent challenge is ensuring that smallholder farmers, who make up a large part of the farming community, have timely and affordable access to quality seeds, as they often rely on informal networks.

However, these challenges are also paving the way for immense opportunities. The Indian seeds industry is well-positioned to expand its export markets, leveraging the countrys diverse agro-climatic conditions to meet global demand for a wide range of crops. The development and integration of new seed technologies, such as those enhanced with AI and precision farming, offer the potential to overcome environmental and logistical hurdles. There is also a rising demand for organic and specialty seeds, which provides new avenues for growth and a shift towards more sustainable agricultural practices.

Agriculture and allied Industries in India

India is among the highest-ranking countries in production volume for various commodities like rice, cotton, dairy, fruits, vegetables, meat and seafood, but the nation has access to only 60 percent of the produce due to lack of storage infrastructure, which leads to an estimated loss of up to 40 percent of the produce. In fact, these losses are estimated at $13 billion annually.

Over the past decade, agriculture and horticulture outputs have seen record growth year- after-year. Yet, crop yields are still generally lower compared to the world average. This low productivity is due to many factors such as erratic monsoons (over 50 percent of cultivated land is monsoon dependent), shrinking groundwater resources, decline in soil fertility, inefficiency in the food distribution system, lack of storage, transportation, lack of awareness in the use of modern agricultural practices and technologies among the farming community, unpredictable weather, small average farm sizes of 1.08 hectares, and agricultural subsidies that distort market signals and hamper productivity-enhancing investment.

Agrochemicals, also known as crop protection chemicals, play a vital role in advancing Indias agriculture sectors. Together with genetically improved crop varieties, they have been instrumental in the successful implementation of the green revolution.

India holds the position of the worlds fourth-largest agrochemical producer and enjoys a trade surplus in this sector. Projections suggest that the agrochemical market is poised to reach $8.1 billion by 2025, presenting ample opportunities for growth across the value chain. The overall outlook for the agrochemicals industry in India remains favorable, driven by robust domestic demand, expanding export opportunities, strategic collaborations with innovators for new product development and potential exploration of off-patent products along the value chain.

Your Company has in place an adequate system of internal control commensurate with its size and nature of business. The system provides reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies.

The Company has put in place proper controls, which are reviewed at regular intervals to ensure that transactions are properly authorized and correctly reported and assets are safeguarded.

The following table sets forth our financial summary:

People & Culture.

The companys strategic vision is fundamentally centered on its human capital, viewing employees not just as a workforce, but as its single most valuable resource and the primary driver of sustained success. This core belief shapes the companys approach to talent management, where a significant focus is placed on its ability to attract, develop, and retain top-tier talent. This is achieved by creating a compelling and supportive work environment, offering competitive compensation packages, and fostering an inclusive culture where every individual is empowered to contribute to their fullest potential.

Furthermore, the company recognizes that continuous growth is inextricably linked to the ongoing development of its people. A robust framework for training and development is a key pillar of this strategy, offering employees a range of opportunities to enhance their skills, gain new experiences, and advance their careers. These initiatives are not merely a benefit, but a strategic investment designed to equip the workforce with the competencies needed to meet evolving business demands and achieve strategic objectives.

Underpinning this entire philosophy is a commitment to cultivating a strong performance and competency-driven culture. The company encourages a high degree of accountability and responsibility, empowering employees to take ownership of their work and their professional growth.

Events after this reporting date

There have been no significant events to be reported other than those disclosed in the Directors Report. Cautionary Statement

Statements made herein, in the Management Discussion & Analysis Report describing the Companys projections, estimates, expectations, plans or predictions or industry conditions or events are "forward looking statement." The actual results may differ from those expected or predicted, since the Companys operations are influenced by many external factors which are beyond the control of your Company.