Tierra Agrotech Ltd Management Discussions

Overview of the Indian Seed Industry Market Size and Growth

The global seed industry has grown from USD 52 Bn in 2014 to USD 74.12 Bn in 2024 -25 (USDA) at a CAGR of 4.5%. India ranks fifth after US, China, France and Brazil. The Indian seed market is projected to grow at a CAGR of 5.56% from 2025 to 2030, reaching USD 5.01 billion by 2030, up from USD 3.82 billion in 2025.

This growth is driven by factors like the increasing demand for high-yielding varieties and the expansion of commercial seed cultivation, particularly with hybrid seeds.

Crop Segmentation

The seed market in India is segmented into several crop types, with a particular focus on grains & cereals, vegetables, cotton, maize, and crops like pulses, oilseeds etc.

1. Grains & Cereals: This segment is the largest due to Indias substantial production and consumption of grains has area growth from last year. Rice (paddy) and wheat are particularly dominant, as rice is a staple in South India and wheat in the North. Rice (Paddy) has grown 7% compare to last year and wheat has grown 3% compare to last year (Gll Research).

2. Vegetables: The vegetable seed market includes various sub-segments such as brassicas (e.g., cabbage, cauliflower), cucurbits (e.g., cucumber, pumpkin), roots & bulbs (e.g., garlic, onion), and solanaceae (e.g., tomato, hot pepper, eggplant) (Gll Research).

3. Cotton and Maize: These crops are significant in Indias seed market, with maize and cotton seeds often being hybrid varieties due to their high productivity and resistance to pests and diseases (Research & Markets). As per the industry cotton has dropped 13% area, where as Maize grown 6%.

4. Pulses, Oil Seeds, Millets & fodder: Predominant Seed business crops are Mustard, Groundnut, Sesame, Bajra, Jowar, cumin, Red gram, Black gram, etc., these crops contribute minor scale of business

Regional Distribution

Uttar Pradesh leads the Indian seed market, largely due to its extensive arable land and dense population, which boosts demand for various seeds. Other key regions include Maharashtra, Madhya Pradesh, Rajasthan, Bihar, Telangana, Karnataka, Punjab, Andhra Pradesh, Chhattisgarh. These states have diverse agricultural practices and crop preferences, contributing to the overall growth of the seed industry.

Breeding Technologies

The Indian seed market is witnessing a shift towards hybrid seeds, which offer higher yields and better re-sistance to environmental stresses compared to open-pollinated varieties (OPVs). Hybrid seeds, especially in crops like cotton, maize, and vegetables, are increasingly adopted by farmers due to their superior performance and adaptability.

Key Players

The competitive landscape features major players such as Advanta, Corteva, Kaveri, Syngenta, Bayer, Rasi,

Nuziveedu, Bioseed, US Agri, Mahyco, Hitech and Rallis India Limited.

Growth Drivers

Several factors are driving the growth of the Indian seed industry:

1. Commercialization of Agriculture: Increased commercialization has led to higher demand for quality seeds that ensure better yields and resistance to pests and diseases.

2. Public-Private Collaborations: Collaborative efforts between government bodies and private companies have spurred advancements in seed technology and availability.

3. Investment by Multinational & National Seed Companies: Huge investment in R&D in tailoring to fit in the various agro-climate and specific needs of customers.

4. Rising Consumer Income Levels: Higher disposable incomes allow farmers to invest in better-quality seeds, thereby increasing productivity.

5. Introduction of Hybrid and Transgenic Seeds: These seeds offer improved traits such as pest resistance, herbicide resistance, stress tolerance and higher yields, making them attractive to farmers.

Value added quality traits like high oil content, ethanol recovery, milling percentage, low glycemic index, high shelf life, etc. are also encouraging farmers to change their product preferences.

6. Government Support: Initiatives such as the Rastriya Krishi Vikas Yojana and ISOPOM (Integrated

Scheme of Oilseeds, Pulses, Oil Palm, and Maize) provide essential support to farmers and the seed industry, fostering growth and innovation (IMARC) (Research & Markets). Subsidies and Bonus on

Minimum Support Price (MSP) announced in certain states to diversify crop cultivation and stabilize the cropping patterns to balance the dietary requirements.

Adoption of Advanced Technologies: The use of Al, data analytics, Seed treatments with new generation chemicals, and biotechnology in seed development is expected to enhance seed quality and adaptability. GMO crops introduction is going become a game changer in near future.

Sustainability: There is a growing focus on sustainable agricultural practices, which includes the development of seeds that require fewer inputs and are environmentally friendly such as dry seeds

Rice etc.

Customization: Seeds tailored to specific regional and crop requirements will see increased demand as farmers seek to optimize their yields and adapt to changing climatic conditions (Gll Research).

Seed Production Trends: Hybrid Paddy, Corn & Cotton Seed production affected at the time of harvest, that created a good demand for available seeds and sold out well due to short supply.

Limited expertise growers for various crops with limited production locations triggering huge demand and increasing the production cost, its need of the hour to balance the profitabilities with efficiency throughout value chain of seeds business.

Commodity prices & Crop Shifts: For Mustard, the area has come down and farmers preferred to grow their own seed rather than packed seed, similarly, because of low market prices, the hot pepper area has come down drastically, In North India, Cotton acreage is replaced with paddy preferably Basmati, In Central India farmers switched from Cotton to Corn & Soybean, In South

India, farmers switched from Cotton to Corn because of better market prices for Corn, Overall, the

Corn acreages increased both in Kharif, Rabi & Spring because of attractive commodity prices. Pulses Red gram, Black gram & Green gram acreages are also increased marginally because of better market prices

Rising Concern: Penetration of Herbicide Tolerant (HT) Cotton Seeds which is not approved and increasing beyond expectation year on year, posing threat to Cotton players. In summary, the Indian seed industry is poised for continued growth driven by technological advancements, government support, increasing demand for high-quality seeds with efficient execution of seeds business. The industrys future looks promising, with significant opportunities for innovation and expansion.

Impact of Monsoon in 2024

In 2024, India experienced a generally normal monsoon season, with the country as a whole receiving 108% of its Long Period Average (LPA) rainfall, according to the India Meteorological Department (IMD). While June saw below-normal rainfall (89% of LPA), July, August, and September saw above-normal rainfall (109%, 115%, and 112% of LPA, respectively). Several regions experienced above-normal rainfall, including Central India (119% of LPA) and the South Peninsula (114% of LPA). However, East and Northeast India received below-normal rainfall (86% of LPA) (IMD)

The 2024 monsoon delivered vital recovery from 2023 drought but highlighted escalating climate vulnerabilities. While it boosted reservoir levels and winter crop prospects in general, but spatial imbalances, temporal imbalances and extreme events year by year underscore the need for regional adaptation crop frameworks and sowing patterns to safeguard agriculture and livelihoods in a warming world. The seeds business hugely impacting due to imbalances monsoon occurrences in both spatial and temporal spreads.

OUTLOOK Our Business

"Tierra" has made a humble beginning in the Year 2013 as a technology centric agriculture company. The objective is set to develop superior quality hybrid seeds stacked with crop specific important traits that provides significant yield benefit and overall cost advantages to farmers and other stake holders. "Tierra" is engaged in research, development, production, processing and commercialization of superior products in major crops like Cotton, Rice, Corn, Mustard, Tomato and Okra. During year 2017-18, Tierra has attracted global attention after their acquisition of Monsantos India cotton seed business and DuPont - Pioneers Cotton company Xylem Seeds Private Limited. "Tierra" has established a state-of-the-art R&D unit in Hyderabad with 10,000 sq. ft. laboratory space with several green houses and breeding farms supported with drip irrigation and other essential facilities. Besides its Breeding and Biotechnology

R&D centers in Hyderabad, Tierra has also R&D units in various parts of India.

In 2018, Tierra expanded its Cotton portfolio in the market by acquiring Indian Cotton seed business of Monsanto Holdings Private Limited and Xylem Seeds Private Limited (a DuPont Pioneer company). The rich and diverse germplasm collected and developed by the experienced breeders of Tierra and the two acquired programs has given the organization a very strong platform in Cotton breeding. Tierras efforts are aimed at developing upmarket products with big boll size, easy picking, earliness, good fiber qualities with strong tolerance to pests and diseases. Our special efforts are to breed cotton for suitability to high density planting system (HDPS), sympodial type, easy pick ability, short stature with synchronous maturity to help harvest the crop in one or two pickings. Special emphasis is also on utilizing male sterility trait for efficient seed production and very high genetic purity. Our focus is to introduce value added - differentiated products and technologies in the market, while protecting them under suitable Intellectual Property (IP) and Plant Variety Protection (PVP) laws. Our business model follows strict compliance with all regulatory guidelines including Freedom to Operate (FTOs).

"Tierra" ventured into vegetable seeds sale from the financial year 2020-21, thereby spreading its portfolio from cotton, paddy, mustard, maize and vegetable seeds. The Company has an extensive marketing network with loyal and committed distributors and dealers in Andhra Pradesh, Telangana, Orissa, Karnataka, Tamil Nadu, Maharashtra, Bihar, Madhya Pradesh, Jharkhand, Chhattisgarh, Gujarat, Uttar Pradesh, Punjab, Haryana, West Bengal and Rajasthan. The Companys focus is to be a leading provider of crop solutions to the farmers by supplying high yielding hybrid seeds. For achieving this, the Company is engaging in R&D efforts in the areas of superior breeding program and biotechnology tools that will enable it to develop highly effective and differentiated hybrid seeds.

Research & Development

Tierra has strong Research and development infrastructure. Our research program is well recognized by

DSIR, GOI which is supported by highly qualified and experienced professionals in industry. Tierra has technological collaboration with key institute like NBRI for unique product development. We also carry out our research through collaborations with academic institutions and other strategic partners. We have teams of plant breeders that have the ability to develop new lines and hybrids. We believe our continuing efforts in research and development provides us with a strong platform to build our market share in the seed industry.

The company has the following R&D Activities:

1. About 100 Breeding & Testing Locations across the country.

2. About 200 Product Evaluation Locations across the country. 3. About 100 Acres of Leased land for Research & Development.

Product Overview:

Opportunities

Tierra, has an opportunity to grow its market share in the existing market as well as be part of growing seed market. The existing opportunities size in the key crops for Tierra is about 905.09 Lakh Hectares. (Source: offers https://upag.gov.in/) opportunity to expand our crop & product portfolio further.

Increasing seed replacement ratio There has been consistent increase in purchased seeds in

Paddy, Mustard, Maize and other crops

Favorable Govt. Policies for farmers Better MSP and subsidized inputs and mechanization is helping the adoption of high-quality seeds in each crop.

More Food for growing population With stable/ decrease in the total arable land, the need for feeding the growing population can be met with better traits and high yielding seeds in each crop.

The scenario post-adoption of hybrids and improved OPVs has resulted in many advantages, such as yield improvement, ensuring higher prices, and availability of seeds at an affordable price. These factors will drive the growth of the Indian seed market in the forecast period.

By 2050, the world ‘s population is projected to reach 9.8 billion, with India accounting for 1.7 billion

(Source: United Nations). To meet the growing food demands of India‘s population, there is a pressing need to significantly increase the yield per hectare, especially considering the diminishing arable land in the country. Furthermore, Indias agricultural yield lags behind global averages due to various factors, including extreme weather conditions, limited adoption of high-yielding hybrid seeds, a lack of awareness about modern agricultural technologies, and inefficient use of agrochemicals.

These challenges present a substantial opportunity for the Companys Seeds business, as well as opportunities for expanding crop advisory and digital offerings. Innovations in seed technology and digital farming solutions can play a pivotal role in addressing the productivity issues that plague Indian agriculture. These advancements can also empower farmers to secure better commodity prices, enabling them to invest in high-quality inputs to achieve higher yields.

Tierra, with its comprehensive product portfolio, extensive distribution network, and a robust team of qualified professionals is well-positioned to support Indian farmers in this endeavor.

Fast-Changing Customer Preferences

Customers today are more likely to experiment with and test new items in the market due to increasing disposable incomes, easy access to information, and rapid acceptance of technological products. Tierra must constantly monitor changes not only in the crops business but also in the consumer/non-cyclical sector.

Competitive Market

Despite Tierras efforts toward innovation in the crops area, it faces severe competition from other big players in the seed industry.

Climate Change

Fast-emerging climate change and sustainability challenges are expected to make agriculture more vulnerable and may cause severe hardship to the fragmented farmer base of India and the rural economy. Product development can be a complicated issue given the diverse climate conditions for agriculture in India.

Government Policies

The imposition of taxes on agriculture can be a potential threat. Government policies regarding price control of cotton and other crops can hamper the companys profitability.

Illegal Cotton Seed

The unorganized illegal cotton seed market in India, which contributes almost one-fourth of the total cotton business in the country, is an emerging threat for the cotton business.

Production Constraints

Year by year increased demand for limited expertise grower base coupled with the labor shortage and triggering increased cost of production necessitated to have innovative in efficient business execution

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanation.

During the year on a standalone basis, the significant changes in the financial ratios of the Company, which are more than 25% as compared to the previous year are summarized below:

Internal control systems and their adequacy:

The Company has in place adequate and appropriate systems of internal controls commensurate with its size and the nature of its operations and these have broadly withstood the test of time. The systems have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorizations and ensuring compliance of corporate policies.

The Internal Audit team is reviewed by the Audit Committee of the Board which monitors its performance on a periodic basis through review of audit plans, audit findings and speed of issue resolution through follow- ups. Through at least four meetings every year, the audit committee reviews internal audit findings assurance and advisory function, which is responsible for evaluating and improving the overall effectiveness of risk management, control and government processes. This entire process helps enhance and protect organizational value by providing risk-based objective assurance, advice and insight.

Financial and Operational Performance

In FY 2024-25, the Company registered Revenue from Operations of Rs. 6563.32 Lakhs compared to Rs. 6714.37 Lakhs in the previous year. The Company has recorded a net loss of Rs. 1158.24 Lakhs for the FY 2024-25 compared to Rs. 920.79 Lakhs for the Previous Financial Year 2023-24.

Material developments in Human Resources

The workforce strength of the Company as on March 31, 2025, stood at 167 employees across different locations. The Company maintained harmonious industrial relations across all its units during FY 2024-25.

At the core of your Companys Human Resource Policy emphasis on attracting, mentoring and holding the best employees, and offering them with wide-ranging career opportunities. The Company strives to offer a positive, supportive, open and high performance work culture where innovation and risk taking is encouraged. The

Company continues to emphasize to be an equal opportunity employer. Company has a Policy of Prevention of Sexual Harassment (POSH) to ensure a harassment-free workplace for employees. Harassment cases are dealt with as per the Companys zero-tolerance policy. During the year 2024-25, no case was reported on sexual harassment.

Further, your Company would like to sincerely appreciate the valuable contribution and support of employees towards the performance and growth of the Company.

Disclosure of Accounting Treatment:

The Company has prepared financial statements which comply with Ind-AS applicable for periods ending on

March 31, 2025, together with the comparative period data as at and for the year ended March 31, 2025, as described in the summary of significant accounting policies. Primarily, a treatment different from that prescribed in an Accounting Standard has not been followed in the preparation of financial statements. However, as regards amendments to certain accounting standards, the applicability / effect on the financial statement has been evaluated and been treated accordingly as explained in Notes to the standalone Financial Statements.

Cautionary Statement:

Statements in this management discussion analysis describing the Companys objectives, projections, estimates, expectations may be forward looking within the meaning of applicable securities-laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could make difference to Companys operations include economic conditions affecting the domestic market and the overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.