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PROJECT REPORT ON ANKUR SEEDS PRIVATE LIMITED NAGPUR (M.S.) Submitted to MAHARSHI DAYANAND UNIVERSITY, ROHTAK In Partial Fulfilment of Requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED) (II Semester) Submitted by, NAME : Kailash Somnathe Reg. NO. :1073901744 GURU GRAM BUSINESS SCHOOL ELC Code :151012055 Plot No 467, Near H B Town , Old Pardi Naka,Bhandara Road, Nagpur, MaharashtraAUGUST 2011

INDEX

y y y y y

TITLE PAGE CERTIFICATE DECLARATION ACKNOWLEDGEMENT CONTENTS

CERTIFICATE This is to certify that Kailash Somnathe , a student of the Maharshi Dayanand University , Rohtak , has prepared his Project Report entitled Guru Detail Study Of Ankur Seeds Private Limited Nagpur , at

Gram Business School , under my guidence . He has fulfilled all requirements leading to award of the degree of MBA ( Industry Integrated ) . This report is the record of bonafide training undertaken by him and no part of it has been submitted to any other University or Educational Institution for award of any other degree or simillar title or prizes.

I wish him all success in life.

Mr. Ajay Patole Program Coordinator Guru Gram Business School

STUDENTS DECLARATION

I hereby declare that Project Report Conducted at Ankur Seeds Pvt.Ltd, Nagpur(M.S.)

Under the guidance of Mr. AJAY PATOLE Submitted in partial fulfilment of the requirement for the Degree of

MASTER OF BUSINESS ADMINISTRATION (Industry Integrated ) TO MAHARSHI DAYANAND UNIVERSITY, ROHTAK is my original work and the same has not been submitted for the award of any other Degree /diploma /fellowship or other simillar titles or prizes.

Place: _________ Date: _________ Mr. KAILASH SOMNATHE Regn.No.1073901744 ACKNOWLEDGEMENTS I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to NIAM for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards my parents & member of GURU GRAM BUSINESS SCHOOL NAGPUR for their kind co-operation and encouragement which help me in completion of this project.

I would like to express my special gratitude to Mr. Ajay Patole and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

CONTENT
CHPTER NO. CONTENTS SUB CONTENTS PAGE NO

1.

Introduction

General Introduction 1.1 Origin Development of Industry and the

1.2 Growth and Present status of the Industry 1.3 Future Industry 2. Profile Of The Organization 2.1 Origin Organization of of the the

23 29 32

2.2 Growth Development of Organization

and the

2.3 Present status of the 33 Organization

2.5 Organization structure and Organization chart 2.6 Product and Service profile of the Organization 2.7 Market profile of the Organization 3. Discussions on Training SWOT analysis Bibliography

43

42

44

50 51

CHAPTER- 1 INTRODUCTION
1.1 General Introduction About Agriculture Sector Agriculture is the backbone of Indian economy. About 65% of the population depends directly on agriculture and it accounts for around 22% of the Indias

GDP. Agriculture is important because of the vital supply and demand link with the manufacturing sector. Share of agriculture sector in Indias GDP has declined from 48% in 1950 to around 20% in 2007. In past few years India has sustainable growth in food production and incomes along with diversification both in consumption and production. Food security and sustainability our major goal has been fulfilled. Now agriculture sector is at point from where it can take big leap. It has been growing at rate of 2.2% which very Hindu rate growth. If India needs to sustain its economic growth rate of 9% in coming years agriculture sector growth rate needs to be pushed to around 4-5% level, task seems difficult but it can be achieved through proper planning.

NEW AVENUES IN AGRI SECTOR: Apart from basic food grain production, other agricultural activities have come up that can lead us to next level of agricultural development. The activities are: Livestock Fisheries Horticulture Organic farming of commercial crop

STRATEGY FOR THE DEVELOPMENT Need for public private partnership in policy development and research. Linking of markets-domestic and international through efficient supply chain. Turning agricultural sector into organized business. Where farmer is an entrepreneur. Making farming an activity for profit rather than for subsistence. India being so diverse in climate, soil types, geography and all the more disparities in the growth level in different state, it is utter most important to plan growth through micro level initiatives.

The strategy paper of eleventh five year plan has laid out target for the following in order to meet the five year: Plan for Improving developing rain water rate of harvesting gap growth of irrigated area. and watershed development. through effective extension.

Bridging the knowledge Diversifying the high value output.

Access to affordable credit. Improving incentives structure and functioning of the market. Refocus on land reforms. Promote animal husbandry and fisheries.

ANNUAL GROWTH RATE AGRI SECTOR AND SHARE OF AGRI SECTOR IN GDP AT 1999-2000 PRICE: YEAR 2000-2001 ANNUAL GROTH RATE IN % O 5.9 -5.9

2001-2002

2002-2003

2003-2004

9.3

2004-2005

0.6 5.8

2005-2006

CHALENGES IDENTIFIED TO INCREASE GROWTH OF AGRI SECTORS: Declining Poor Declining Distorting Declining Unorganized Poor irrigation market public due credit and agricultural to and water government private and marketing Productivity. management. research. intervention. investment. insurance. infrastructure. strategy.

Inefficient supply chain and Slow development of agro processing units.

Indian productivity compared with world best: Agriculture being constrained by the availability of land, the productivity remains the crucial factor based on which is the future of Indias food security. FOOD ITEM YIELD(INDIA) Unit:Ton per hector POTENTIAL YIELD HIGHEST IN WORLD 9.71(EGYPT)

RICE WHEAT TOTAL

3.03

2.69

8.89 (NAMIBIA) 10.41 (IRELAND)

2.39

10

CEREAL

PULSES

0.6

5.14 (BARBADOSO) 42.9 (PERU)

EDIBLE OIL SEEDS SUGARCANE

0.25

6.07

122.7 (MALAYSIA)

Poor irrigation and water management: Irrigation and water management is the most important issue on which growth of agri sector largely depends. Still the agriculture sector largely depends on the monsoon. The irrigation potential of Indian agri sector is 140 million hectares of which only 70% is being exploited. Public and private investment in agriculture sector: Indian agriculture sector is in dire need of investment to meet the expenses of irrigation, research and development, rural infrastructure and electricity to further increase the productivity and strengthening the agri sector in India.

GROSS CAPITAL FORMATION IN AGRICULTURE AT 1999-00 PRICE: INVESTMENT IN AGRICULTURE SECTOR (Rs Crore) YEAR PUBLIC SECTOR 1716 PRIVATE SECTOR TOTAL INVESTMENT

19992000

35757

43472

20002001

7155

31580

38735

11

20012002

8746

38297

47043

20032004

7962

38861

46823

20042005

9376

35766

45132

20052006

10267

38309

48570

20062007

13219

41320

54539

Agri credit and insurance: There is need to increase credit and insurance policies for the farmers. There are incidences of increase in farm debts, primarily due to lack of organized credit. It has also been pointed out that due to lack of credit availability that adoption of improved seeds, fertilizers and modernization could not be taken up. New marketing and supply chain model: Agri sector requires revamping of all the level of supply chain input delivery, credit, irrigation facility, farmers diversifying, cold storage chain, better and efficient marketing technique, efficient processing, warehousing and competitive retailing. WTO AND INDIAN AGRICULTURE: India has been emphasizing that the WTO agricultural agreement must include: Removal of distorting subsidies by the developed countries to level the

12

playing field. Appropriate provision designed to safeguard food and livelihood security and to meet the rural development needs of developing countries. India has also taken the stand that the government must foster stable and remunerative prices for domestic producers in order to increase productivity and gradual move away from dependence on low productivity agriculture. For these meaningful and effective instrument i.e.; special products and special safeguard mechanism is important for developing countries like India. WHY WE ARE BULLISH ON AGRICULTURE SECTOR: In order to have food security government have to restructure the agriculture sector. We expect significant step in coming years will be taken like collective farming or maybe corporate farming. So that yields increases. Agricultural sector is at the cross road of structural change. There is supply demand mismatch of agri product across the globe which is pushing the price northward. Increasing price will enhance the profitability of agriculture sector and hence smart money will flow into the sector. The arable land is limited in supply it cannot be increased. So supply constraint will remain. Only way to fill the gap of demand and supply is by increasing the agriculture productivity. Ever increasing population will demand more food and hence increase in price of food product. The rural India in not leveraged and hence companies will move rural sector for next growth. This will increase employment opportunity in rural India and hence decrease burden on agriculture sector. This will help government in fine tuning the policy for agriculture sector in terms of lands.

NAME

PRODUCT

SALE IN CRORE 8455 852 391.25

MARKET PRICE IN Rs. 76.85 615 1570

RCF RALLIS MONSANTO

FERTILISER PESTICIDE/CHEMICAL PESTICIDE/AGROCHEMICAL

13

UNITED PHOSPHOROUS JAIN IRRIGATION ADVANTA M& M DCM SHRIRAM CHAMBAL TATA CHEMICAL

CHEMICAL SPECIALITY

2437

144

DRIP IRRIGATION

2188

650

SEED /TISSUE CULTURE TRACTOR

129 3093

646 712 52 65 8574 221

DIVERSIFIED FERTILIZER

3596

4643

CHEMICAL/INORGANIC/CAUSTIC

COMPANIES IN AGRICULTURE SECTORS AND ALLIED ACTIVITY:

CONCLUSION: This is the need of the hour that government should look towards the rural India. We expect the budget to shower blessing on the agricultural sector. Government is expected to increase spending in the agricultural sector to boost the share of agriculture in GDP. The increasing price of agriculture product is shifting the focus of the company from urban India towards rural India. Increasing price is making the farm produce more profitable and hence increasing the disposable income of the rural India. The company associated with the agri economy is expected to do better in the coming years. The agricultural sector is safe bet and has not got affected by the down turn in the global economy. This is because it is the necessity of every individual rather than luxury. The demand supply gap also makes it safe bet.

14

We advice our long term investor to take exposure in the companies related to agriculture sector. Climate: India has Monsoon climate in which a year has been divided into two distinct seasons of summer and winter. Rainfall occurs mainly in summer. Agro Climatic Zones: India has diverse agro-climatic zones from north to south and from east to west. It has been divided into fifteen different agro-climatic zones, which signifies its diversified agricultural production from tropical to temperate crops. Major Crops: Rice, Wheat, Sugarcane, Oilseeds, Pulses, Cotton, Jowar, Bajra, Ragi, Tea, Coffee, Coconut, Cashew, Rubber, Spices, Cauliflower, Onion, Cabbage, Mango, Banana, Sapota, Acid lime. Farm Size: Indian Agriculture is characterized by small and marginal operational holdings. About 85% of total cultivated land has been fragmented into less than 10-hectare land. About 60% of farmland is less than 4 hectare in size. Growth prospects: Agricultural growth is essential for the sectors progress and for overall growth of Indian economy. This growth rate is also a sort of essential condition for improving living standard of those who are dependent on agriculture. The main goal of National Agricultural Policy to achieve growth rate higher than four percent seems to be formidable task particularly when we look at historical rate of growth in Indian agriculture. As can be seen that growth rate in Indian agriculture in the post Independence period is found to be 2.55 percent per annum. This growth rate includes contribution of technological breakthrough of green revolution and major expansion in irrigation and in area under cultivation. Out of these three sources of output growth the scope for expansion of cultivated area is much more limited in future compared to that experienced in the past. Net cultivated area (NCA) has become stagnant at 142 million hectares (Table 2) and unless serious efforts are launched to bring wastelands under cultivation there would be no scope to expand NCA. However cultivated area as such can be
15

expanded by raising more number of crops on the same piece of land i.e. by raising crop intensity. This expansion depends heavily on provision of irrigation.

16

1.2 INDUSTRY PROFILE SEED INDUSTRY

The Indian seed industry is the eighth largest in the world with an estimated value of INR 49 billion (USD 1.06 Billion) and with an annual growth rate of 12% to 13 %. The industry has shown a buoyant growth over the last two years on well supportive monsoons. The development of private seed industry is no more confined to just production and marketing of seed. It has well acquired technological strength to cater to the varietal needs of tomorrow. Along with industries Indian farmers have in recent years adopted intensive cultivation practices in order to meet the growing demand for agricultural produce. If we look at the production capacity 70% of Indias seeds sales come from farmer bred seeds, 26% from those bred in publicly financed institutions, and only 4% from researched hybrids. The domestic hybrid seeds market is placed at INR 4.9 Billion and is annually growing at 10% a year, against the 5% global growth rate. Here, majors players like Monsanto India and Syngenta India dominate the hybrid seed market. The home market works out to about 3.7% of the global market. As the organized Indian seed industry is just forty years old. Yet, its growth has been phenomenal. India is among the few countries where the seed sector is already reasonably advanced. One hundred fifty years ago the United States did not have a commercial seed industry; today we have the worlds largest. Some view this as real progress, a form of genetic Manifest Destiny. A nation once a debtor in plant genetics now supplies the world. In 1854, seeds were sourced in the U.S. by way of a small number of horticultural seed catalogs, farmer (or gardener) exchange, on-farm seed saving, and through the beneficence of the United States government. Specifically, beginning in the 1850s, the U.S. Patent and Trade Office (PTO) and congressional representatives saw to the collection, propagation and distribution of varieties to their constituents throughout the states and territories. The program grew quickly so that, by 1861, the PTO had annual distribution of more than 2.4 million packages of seed (containing five packets of different varieties). The flow of seed reached its highest volume in 1897 (under USDA management) with more than 1.1 billion packets of seed distributed. The governments objectives in funding such a massive movement of seed stemmed from the recognition that

17

feeding an expanding continent would require a diversification of foods. To the early colonies, the introduction of wheat, rye, oats, peas, cabbage and many other vegetable crops was as critical to food security as was the adoption of the corn, beans and squash. Immigrants were encourage to bring seed from the old country, founding fathers such as Thomas Jefferson engaged in seed-exchange societies, and by 1819 the U.S. Treasury Department issued a directive to its overseas consultants and Navy officers to systematically collect plant materials. The first commercial seed crop was not produced until 1866cabbage seed produced on Long Island for the U.S. wholesale market. The industry flourished to some degree, but early seed trade professionals felt their growth was stymied by the U.S. government programs as well as the self-replicating nature of their product (that is, the factory contained within that product). In 1883, the American Seed Trade Association (ASTA) formed and immediately lobbied for the cessation of the government programs. The organization developed powerful allies, such as Grover Clevelands Secretary of Agriculture, J. Sterling Morton, who wrote that the government giveaway was antagonistic to seed as a commodity-form and in direct competition with the private seed trade. But the program was very popular with constituents, and the USDAs seed budget was kept intact at one point counting for a full 10 percent of the agencys overall annual expenditures. In the early part of the 20th century, the first wave of hybrids began to provide seed companies with a potential increase in product profitability (as farmers would now need to return to the seed distributor for materials each year). However, most of the hybrid development was occurring at Land Grant Universities, and these universities refused to give the companies exclusive rights to the seed. Once again, the industry felt its growth hindered by federal programs and complained of unfair trade practices. Mounting data also indicated a slowing in yield increases from seed developed in government programs. The industry used this last point to strengthen its argument for the privatization of seed development in order to foster greater food security. In 1924, after more than 40 years of lobbying, ASTA succeeded in convincing Congress to cut the USDA seed distribution programs. The USDA still supported breeding at the state agricultural schools, and for a time these programs continued to compete with seed companies by developing finished commercial varieties. Associations such as the American Society of Agronomy and American Society of Horticulture Science eventually convinced the public programs that their

18

appropriate role was in training plant breeders, performing fundamental research, and creating raw materials and technologies for private industry to capitalize on. The LGUs began to increasingly serve in this capacity, developing inbred parental lines and breeding stock that the seed trade would use to create proprietary varieties. These changes in the public role, along with improvements in hybrid techniques, led to the growth of the seed trade following World War II. The trade was well represented during this period by regional companies. The conversion to monocropping and large-scale corporate agriculture had not yet moved into full swing. The Santa Clara Valley grew vegetables and fruit and not internet startups, and Americans still planted their Victory Gardens. The seed trade reflected this diversity in food production. In the 1960s, a few larger seed firms began to purchase smaller companies (mostly to acquire strong hybrid holdings). But the consolidations of this period were minor compared to the frenzy that would come with a Supreme Court ruling on June 16, 1980, in the case of Diamond v. Chakrabarty. Prior to the Chakrabarty decision, a plant (or animal) could be owned, but the genetics could not. This case cleared the patenting of life forms on the bases of their genetic coding. The PTO granted more than 1,800 such patents following the ruling. Companies that had no historical seed interestsprimarily chemical and pharmaceutical firmsbegan purchasing seed companies. In a few short years, there were billions of dollars in mergers and acquisitionswith little to no regulatory oversightcreating for the first time a majority ownership of plant genetics by a few multinational companies. No other natural resource (marine, timber, minerals) has ever shifted from public to private hands with such rapidity, such intensity of concentration, and so little oversight.. Indias seed industry has grown in size and level of performance over the past four decades. Both private and public sector companies/corporations are involved with the production of seed. The public sector component comprises two central corporations, viz. National Seed Corporation (NSC) and State Farm Corporation of India (SFCI) and 13 State Seed Corporations. The private sector comprises around 150 seed companies, which include national and multinational companies and other seed producing/selling companies. The industry has made impressive strides from a modest beginning in seed produc- tion in 196263 to over 5 lakh hectares by 199596. The quantum of seed produced and sold has gone up by five times from 14 lakh quintals to 70 lakh quintals during the

19

corresponding period7. In 199091 the area planted with bought seed was about 10.35%. The total bought seed in 199091 was estimated at around 5.91 lakh tonnes valued at Rs 679.80 crores This seed component in 199091 comprised of proprietary hybrids, public-bred hybrids and open-polli- nated varieties. In terms of quantity and value, seed of open-pollinated varieties was the largest followed in order by public hybrids and proprietary hybrids. Seed of he proprietary hybrids formed a significant portion of the total seed market. In terms of quantity, although proprietary hybrids had only 32.34% share of the market, in terms of value the share was 76%. In contrast to the 1991 scenario, the estimates in 199899 presented a different picture with proprietary hybrids growing at the expense of the public hybrids. The area planted to bought seed increased by 3% over that of 199091 and the market size expanded significantly in terms of quantity and value. The total market for purchased seed was 8.64 lakh tons valued at Rs 2249 crores. The component of proprietary hybrid seed was estimated to be around 51,314 tonnes in 199899 as against 19,300 tons in 1990 91 and valued at Rs 636 crores as against Rs 95 crores respectively. The volume of public bred hybrids came down to 38,704 tons in 199899 as against 59,671 tons in 199091. The volume of seed of open pollinated varieties (OPV) increased by 51% to 774,881 tonnes (tables 3 and 4). The present contribution of OPV in the total bought seed market segment has expanded indicating greater use of bought seed by farmers. The price paid by farmers for all hybrid seeds was higher than that in 199091. The trend is suggestive that price of seed is not considered a constraint in usage by the farmers, if the seed ensures higher return through higher productivity and other value added traits8. Table 5 gives data on the quantity of seeds marketed in 199091 and 199899 for cereals, oilseeds, fibres, potato. b. GROWTH AND PRESENT STATUS OF SEED INDUSTRY Seed, being the basic and most critical input, occupies a prime position in case of agricultural production. Indian seed industry is at the 5th joint position with Japan and Germany in the world with revenue of US $1.5 billion and is growing at the rate of 12-13% over the past few years. With lower seed replacement rate in most of the crops, cotton and some vegetables being exception, the potential for market expansion is high. Hybrids are being used in case of cotton and to some extent in corn, millet, sunflower and few vegetables. Based on estimation, the contribution of quality seed alone to the total production is about 15 20% depending upon the crop and it can be further raised up to 45% with efficient management of other

20

inputs. Nevertheless, the awareness and attraction towards switching to high yielding hybrids is increasing at a fast rate Private sector seed companies play a major role in seed development, marketing and distribution. The governments decision to utilize biotechnology as a means for achieving food security, has made several leading biotechnology focused multinational seed companies enter the Indian market. The private sector accounts for 70% of the market in terms of market turnover whereas the public sector has the greater share in terms of volume sales. Global and Indian Scenario The world seed market is of the value US $40 billion. The top 10 companies cover almost 2/3rd of the revenue. Monsanto is the leader with revenue of US $5000 million, followed by DuPont and Syngenta. The revenue also includes income from licensing and sub licensing for utilizing biotech traits. India with a fast growing market houses around 400 companies, which include both indigenous and foreign players. These can be categorized as: 1. Seed Giants - Monsanto, PHI, Bayer, Syngenta etc.

2. Mid Size growing Companies - Nuziveedu Seeds Ltd, MAHYCO, Advanta India Ltd., JK Agri Genetics Ltd., US Agri Seeds, Shriram Bioseed Genetics Ltd. etc.) 3. Mid Size Constant Market Share Companies - Krishidhan Seeds, Ganga Kaveri Seeds, Ajeet Seeds, CP India Ltd etc. 4 Small Size Companies - Yashoda Seeds, Doctor Seeds etc The commercial seed market in the country accounts for 25% of the total market potential and the remaining 75% is dominated by varietal seeds that farmers retain from prominent food and commercial crops. The public sector, led by National Seeds Corporation Ltd and 13 other State seed corporations, supplies high volume and low value seeds of improved varieties of cereals, pulses and oilseeds

21

Evolution of the Indian seed ind ustry Initially, the two national organisations National Seeds Corporation (NSC) and State Farms Corporation of India Ltd (SFCI), were the prime players. Set up in 1963, NSC was assisted by Rockfeller foundation and USAID for seed quality control and production. SFCL was established in 1969 followed by State Seed Corporations. Private seed firms slowly emerged throughout the 60s and the 70s, with a number of them benefitting from NSCs technical assistance. Presently public private partnership is being given emphasis in order to take the technology to the last farmer. Introduction of New Seed Development Policy (19881989) was one of the significant steps in modernising the Indian Seed Industry. The policy made way for the farmers to the best of seed and planting material available anywhere in the world. The private seed industry is thus undergoing a phase of transition with intense international competition, increasing R&D costs, and the complexity of biotechnology leading to increased consolidation of the industry with several of the large and medium companies merging or being taken over by multinational seed companies. Most large multinational seed companies now have their presence in India (either as a joint venture or with 100 percent equity) with their main focus on biotechnology. With respect to the legislative governing bodies, The Seed Act of 1966 and the Seed Control Order were followed earlier. However the new proposed Seed Bill 2010 has several supportive amendments and the following are the few salient features:
y

Registration made compulsory for all kinds or varieties of seeds to be sold in the

country. Selling or supplying any seed which is not of a registered kind/variety is prohibited. Farmers have been exempted from compulsory registration.
y Penalties proposed in the Bill are more stringent than prescribed in the existing Seed Act.

Seed Production System in India: In India, the seed production and multiplication follows the limited generations system in a phased manner There are three generations namely

22

breeder, foundation and certified seeds ensuring quality and genetic purity till the seed goes to the soil. Breeder Seed Breeder seed refers to the progeny of nucleus seed of a particular variety and is produced by the originating or sponsored breeder. Breeder seed production is the mandate of the Indian Council of Agricultural Research (ICAR) and is being undertaken with the help of; a.ICAR Research Institutions, National Research Centres and All India Coordinated Research Project of different crops b.State Agricultural Universities (SAUs) with 14 centres established in different States c.Sponsored breeders recognized by selected State Seed Corporations, and d.Non-Governmental Organizations. ICAR also promotes sponsored breeder seed production programme through the National Seeds Corporation (NSC) / State Farms Corporation of India (SFCI), State Seeds Corporation (SSCs), Krishi Vigyan Kendras (KVKs) etc.

Foundation Seed Foundation seed is the progeny of breeder seed and the responsibility for production of foundation seed is taken up by the NSC, SFCI, State Seeds Corporation, State Departments of Agriculture and private seed producers, with the necessary infrastructure facilities. Foundation seed is required to meet the standards of seed certification prescribed in the Indian Minimum Seeds Certification Standards, both at the field and laboratory testing. Certified Seed

23

Certified seed is the first generation of foundation seed, for which it is a must to meet the standards of seed certification as per the Indian Minimum Seeds Certification Standards, 1988. The production and distribution of quality/certified seeds is primarily the responsibility of the State Governments. Certified seed production is organized through State Seed Corporation, Departmental Agricultural Farms, and Cooperatives etc. The distribution of seeds is undertaken through a number of channels i.e. departmental outlets at block and village level, cooperatives, outlets of seed corporations, private dealers etc. The private sector has also started to play an important role in the supply of quality seeds of vegetables and crops like hybrid maize, sorghum, Bajra, cotton, castor, sunflower, paddy

Industry Statistics The seeds can be classified as Hybrids, OPVs and propagating materials in case of Field crops and Horticultural crops. However, the market trend is towards hybrids and major resource utilisation is for developing high yielding hybrids with improved traits of pest and disease resistance. Owing to their higher yield potential, hybrids are being projected as the solution for food security. But the farming community is yet to completely adopt hybrid crops. In case of paddy, the area under hybrids is 3%, while it is 30% in Maize. However Bt cotton hybrids made a revolutionary impact, as India became a net exporter of cotton. The area under hybrid cotton is around 8.4 million hectares (almost 90% of total area) and this is a phenomenal increase from a mere 50,000 hectares in 2002. Hence it is very evident that Cotton occupies the major share of revenue for private players in case of field crops with Maize, Sunflower, Bajra and Jowar to follow respectively. In case of horticultural crop, vegetables occupy a prime position. Even here for the private firms, hybrids form a major revenue earner. The hybrid vegetable seed market in India is estimated to be US $40 million. Tomato occupies the 1st position with 20% of the market followed by okra and cabbage. Vegetable seeds play major role in export and import, as they constitute nearly 40% of the total seed traded. R&D focus

24

With respect to the cost aspects of the companies, around 15-18% of the revenue is spent of R&D by each company and R&D budget allocation of medium sized companies is growing at the rate of 20%. However scarcities of labour and skilled professionals, which form the basic need for seed production, are driving the cost of seed high. Bt technology being path breaking in the industry, companies are trying to expand the same into several crops and Brinjal being the most in news in the recent days. Several international institutes and scientific organisations are conducting intense study in areas viz. fortification; transgenics etc and the results can be expected in few years to drive the world marke Conclusion Indian seed industry with its considerable growth rate and increasing R&D is expected to rise to a higher level in the international market in the future years. Consolidated effort and focus from both public and the private sector can drive the market towards a farmer friendly and growth oriented industry.

FUTURE OF SEED INDUSTRY Indian agriculture future of seed ranks second only to USA in sheer size agriculture. By industry

of

virtue of its large arable land area, sizeable irrigated area, rich agri-biodiversity, diverse agro climate and well- Accounting for approximately 30% of the national GDP, developed research system, the country has all the agriculture is the backbone of Indian economy. It is the potential to emerge as a global power in agriculture. The source of livelihood for over 70% of its population. impressiv growth registered in agricultural production in Having the largest arable area (170 million ha), India general and food grains in particular during the last 30 years has made the country self -sufficient in cereal grain with a sizeable surplus which can be exported. Even to remain where we are today in terms of level of per capita consumption of food, the country has to add another 40 million tonnes by 2010 (refs 9, 10). With no more arable land and productivity of major crop plants plateauing, the prospects of achieving the target especially with the aid of currently available technologies is a challenging proposition. Many of the problems that impede the productivity of our varieties and hybrids have defied solution through conventional breeding approach. These include wide- spread

25

moisture stress (> 65% of the area particularly under rainfed and dryland conditions), expanding sali- nity, new pests and biotypes of higher virulence and poor shelf-life. There is thus a distinct need for innovative technologies to find solutions to existing and emerging problems and thereby increase the overall productivity and stability of our major crops. Unlike in developed countries, population growth in India is far in excess of its growth in agricultural production warranting con- tinued inputs to achieve a steady increase in food production. The route to increase in production lies through improved agronomic practices and availability of high quality seed1.

26

CHAPTER 2 PROFILE OF THE ORGANISATION

27

PROFILE OF THE ORGANIZATION COMPANY NAME ANKUR SEEDS PRIVATE LTD. RANK MARKET PRICE 11th 325 Rs

MD

M. G. SHEMBEKAR AGRI-BUSINESS IN FIELD CROP, VEGETABLE & TRANSGENIC CROPS

BUSINESS

START-UP YEAR

1976

SECTOR

PRIVATE

LEVEL OF OFFICE

HEAD OFFICE

LEVEL OF COMPANY

INDUSTRY BASED

28

COMPANY NAME ANKUR SEEDS PRIVATE LTD. NO. OF EMPLOYEE 351-500

TOTAL TURNOVER

10-100 CRORE

PINCODE

440018

ADDRESS

27,

NEW COTTON MARKET LAYOUT, NAGPUR - 44OO18

TEL:NO.

91-712-2726148; 2725117

WEBSITE

www.ankurseeds.com

The company sold 15 lakh packets of BG-I and 9.50 lakh packets of BG-II in almost all the cotton growing states of India during the fiscal.

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Ankur Seeds Private Limited, a forerunner in marketing of insect resistant cotton hybrids in the country, increased its market share in Bt cotton substantially. The total revenue of Ankur Seeds for FY 2010-11 was 325 crore. The company sold 15 lakh packets of BG-I and 9.50 lakh packets of BG-II in almost all the cotton growing states of India during the fiscal. For distribution of its products, the firm has a well spread marketing network in 16 states of the country, head office in Nagpur, 11 regional offices and six area offices. The company organizes several regional demonstrations across the country which is attended by 100,000farmers every year. The company has organized seven regional demonstrations in the previous year and invited over 50,000 farmers to its programs. It started its research activities in cotton, okra, brinjal and chillies and has expanded to more than 15 crops. The R&D of the company is recognized by the Department of Scientific & Industrial Research (DSIR) and the company also received the National Award for excellent R&D achievement from Government of India in 1996.

Ankur Seeds has production and processing facilities spread across the various potential production areas of the country. The company has 11 state-of-the-art processing plants, with production capacity of over 16,000 tons; a dehumidified storage capacity of 5,000 sq m for medium term storage and 10,000 sq m of warehouses. Its products like Akka-Bt, Jai-Bt in cotton; Sonam & Rupali in paddy; Ankur 40 in okra; Ankur 32 in chilly; tomato 1001; Ajay, Kirti, Utkarsh in brinjal; Latika in ridge gourd; Shreya and Karishma in bitter gourd have become extremely popular with the farmers. In the year 2010-11, Ankur Seeds applied for registration of 14 varieties in PPV and FRA and it also released more than 20 varieties of commercial crops. Ankur Seeds has invested significantly in marker-assisted breeding projects for developing drought and disease resistant varieties in vegetable and rice. To achieve this it has collaborated with national and international institutes. Screening of drought resistant cotton transgenics is under process as per the guidelines of DBT and will also apply for the event selection trials for Bt brinjal that has been developed by the company. In brinjal, the company has successfully developed cytoplasmic genetic male sterility, which will have long term benefits in hybrid seed production technology in brinjal. The company has also procured a gene for insect resistance from the Indian Agricultural Research Institute in 2009, work on which is presently underway.
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Ankur Seeds also signed a memorandum of understanding (MoU) with the International Centre for Genetic Engineering & Biotechnology to work on a research project on development of virus resistanc in okra. Ankur Seeds Private Limited is a fully integrated seed organization involved in the wide range of crops and marketing activities across the country.Established in 1976, with its head office in the heart of central Indiaat Nagpur, the company has been working relentlessly to uplift the farmers' state through extensive Research & Development and rendering quality seeds and services to meet the changing requirements of the farming community. For its excellent R&D achievement, Ankur bagged the most coveted National Award from the Government of India in 1996. Many of the hybrids developed by Ankur Seeds in Cotton, Paddy, Bajra, Maize, Okra, Brinjal, Chilly and Watermelon are becoming instant hit and continue to be on top of the farmers' mind. Its products like Akka-Bt, Jai-Bt in cotton; Sonam & Rupali in paddy; Ankur 40 in okra; Ankur 32 in chilly; tomato 1001; Ajay, Kirti, Utkarsh in brinjal; Latika in ridge gourd; Shreya andKarishma in bitter gourd have become over the counter products.Keeping in mind the fast changing future marketing scenarios, Ankur has focused its attention on biotechnology to develop transgenic crops for resistance to biotic and abiotic factors. The company pledges to use biotechnology for the benefit of the humankind with due consideration to the safety of all the living being and Solid scientific base, the competent production wing environment. and professional

marketing team are assets of the company and secret for its success .

Mission Three dynamic

young

agriculturists

Ravidada

Kashikar,

Laxmandada

Aurangabadkar and Madhavrao Shembekar started on a mission, a mission to provide quality planting material suitable for the Indian subcontinent, to bolster the green revolution to the other parts of India. Thus was born Ankur Seeds. The mainstay of a successful crop being in the quality of seeds sown, Ankur aimed at providing high quality seeds to the farmer community at reasonable prices. Ankurs aim has also been to convince the farmers about the beneficial use hybrids to local varieties and thus enhance production. of high yielding

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Infrastructure Beginning with a modest office of a little over 200 sq. ft in 1976 and an initial production of 150 quintals Ankur received an overwhelming response from the people of Vidarbha for its public bred varieties of cotton, jowar and okra. The company then expanded its production acitivities to Andhra pradesh, Gujrat and other parts of Maharashtra.

TestingFacilities For a vast country like India with varied soil and climatic conditions production of seeds suiting each climatic and soil type was imperative. Ankur launched its research and development activities in 1978 with a view to providing innovative, exotic and more farmer friendly planting material to the farmers. Ankur commenced its research activities in vegetable crops like okra, hot pepper, cowpea, egg plant, cucurbits and field crops like cotton. The companies remarkable research achievements were recognized by the DSIR government of India in 1993.

The companies testing laboratory at Kinhi provides for Biochemical Analysis, Fibre Testing, Molecular Culture, Soil Pathology & Plant Analysis, Plant & Physiology,

testing facilities Biology, Tissue Cytology, Plant Microbiology.

The company has various regional research stations for multi location trials of advanced generation material. Ankur has realized the future need of the industry and has geared up for the same. Biotechnology through bio safety for the benefit of mankind is ankurs vision for the future. Ankur has ventured into the field of transgenic research which includes incorporation of insect tolerance in cotton by using Cry I Ac and Cry X gene. The future projects include incorporation of drought tolerance traits, improvising the quality of vegetable crops like delayed ripening of the tomato. Research&Development In today's world of fierce competition, significance of employing latest tools & techniques and making use of technological and scientific breakthrough in developing new products play a major role in providing competitive edge.

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Ankur has acknowledged the same beforehand and considers biotechnology as a precious asset for improving and hastening the breeding programmes. It simplifies the techniques of breeding and the generational studies of the gen otypes and their characteristics are made easier by the techniques such as AFLP, RAPD, RFLR Molecular markers now easily identify the desired genes of interest in the initial generation itself. Resistance traits of wild species against biotic and abiotic stresses are being transferred by wide hybridization with the aid of embryo culture and somatic fusion techniques. Keeping pace with the

developments in the field of plant biotechnology, Ankur has also ventured in the field of transgenic research. The company has already given transgenic cotton hybrids having bollworm and spodoptera tolerance. Furtheron, it has been working on incorporation of tolerance to abiotic particular. stress and improvement in the quality of vegetables in

We do use molecular marker assisted selection methodologies for speeding up the breeding process. We have also been developing genotypic markers for various developed traits with through the use of the near isogenic breeding lines that are programmes.

The company has a tissue culture division that can support in transformation work. It is capable in supporting wide hybridization and somatic fusion experiments. Company techniques for fingerprinting is also of working its on different genotypes.

Greenhouse and laboratory facilities created by Ankur comply with the norms set by Department of Biotechnology, Government of India. The company pledges to use biotechnology for the benefit of the humankind with due consideration to the safety of all the living being and the environment. Production&Processing Beginning with a modest office of a little over 200 sq. ft in 1976 and an initial production of 150 quintals Ankur received an overwhelming response from the people of Vidarbha for its public bred varieties of cotton, jowar and okra. The company then expanded its production acitivities to Andhra pradesh, Gujrat and other parts of Maharashtra. With an ever increasing demand for its quality seeds Ankur started production in its own processing units in the year 1983 at Tirupati and Kisanagar.
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The company provides employment opportunities to over 30000 persons annually through its contract farming practices. These persons residing in various parts of the country undertake seed production for the company under the able guidance of our professionals. The staff works hand in hand with the growers to check the isolation, genetic purity and health of the seeds in the field to facilitate production of excellent quality seeds. The company also provides guidance to the farmers in the use of fertilizers. Thus the farmers gain expertise even for independent cultivation of various crops. The company has eleven state of the art processing plants with a production capacity of over 16000 tons, a dehumidified storage capacity of 5000 sq m for medium term storage and 10,000 sq m warehouses. Our processing plants are one of the best in the country equipped with the most modern technology.The plants provide facilities for drying, pre-cleaning, ginning, delinting, gravity separation and fungicidal treatments. The seeds are subject to stringent quality control measures. The seeds are tested for their germination, moisture content and weed seeds during the laboratory tests. The genetic purity, seed health and vigour are tested before the seeds are marketed. The company has also achieved high levels of seed purity with the genetic male sterility techniques. The failure percentage of our seeds in the lab and field tests is not even 1%. The company has autopacking facilities for its products which ensure airtight packing and accuracy in weight.

Marketing With a Head office in Nagpur, 11 regional offices and 6 area offices Ankur has a network covering all major states of India. The company organizes several regional demonstrations across the Country which is attended by 100 thousand farmers every year. The company has organized seven regional demonstrations in the previous year and invited over 50,000 farmers to its programs. This activity is skillfully handled by the competent marketing team. The members of the marketing team are in close contact with the farmers from the point of sale of seeds to the time the produce is ready. The marketing team together with the distributors and dealers provide valuable information to the farmer for helping him in optimizing his output.
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FORWARD LOOKING OF COMPANY It gives us immense satisfaction in bringing out the new updated version of Company catalogue encompassing all important product details with the blessing and inspiration of the Almighty. Demand generation at end user level to promote the range of company products. Successfully

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organizing and conducting farmer training camps, group meeting & mega farmer meeting for educating the farmers about the new products and our benchmarking products. Strategy implementation, Rolling forecasting, and finally to achieve targeted annual sales & collection. Conducting demonstration of new seeds in farmer fields and providing feedback to Management. Providing technical support to other Junior staff (Field Assistant & Sales Officer) regarding company products & Seeds & new Strategies. Day to day co-ordination with RSMs & HO for Management Information Systems. Support promotional Activity work for GM & Ass.GMs. Result oriented channel management (Maintaining Farmers, Dealers & Distributors Channels) Making analysis reports of Target vs. Achievement, Expenses vs. Sales. Customers satisfaction is the motto of the company.

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Products & Services

Cash Crops * Cotton (Akka Bt ) * Cotton (Jassi BG-I * Sunflower (Ravikiran-1)

Field Crops * Corn / Maize (Arun) * Corn / Maize (Bhanu) * Corn / Maize (Bhaskar) * Corn / Maize * Mustard (Ankur Sonika) * Mustard (Ankur Suhani) * Pearl Millet / Bajra (Ankur 602) * Pearl Millet / Bajra (Ankur 909) * Pigeonpea / Tur * Rice (Ankur 3313 )

Vegetables * Beans * Brinjal

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* Brinjal (Ajay) * Brinjal (Ankur Panna) * Brinjal (Ankur Shreerang) * Brinjal (Kuldeep) * Brinjal (Utkarsha) * Cabbage * Capsicum * Chilli Arch

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SALE STRUCTURE OF ORGANIZATION CHAIRMAN

DIRECTOR

GENERAL MANAGER

DEPUTY GENERAL MANAGER

ZONAL AREA MANAGER

AREA MANAGER

AREA SALES MANAGER TERRITORY SALES MANAGER

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DISTRIBUTOR SYSTEM OF COMPANY COMPANY GODOWN

DIRECT DISTRIBUTOR

SUB DISTRIBUTOR

FARMER

SALES PROMOTION:
1. 2. (a) (b) (c) 3. (a) (b) 4.

FARMERS MEETING ELECTRONIC MEDIA RADIO T.V. INTERNET PRINT MEDIA NEWS PAPER MAGAZINE FIELD DEMOSTRATIONS

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SCHEMES REGULATED BY COMPANY: ADVANCED BOOKING TARGET BASED SCHEMES

1. 2. 3. 4. 5.

FOREIGN TOURS CREDIT POLICY FREE GIFT LUCKY DRAW CASH DISCOUNT

BEST MEDIA FOR PUBLICITY & SALES PROMOTION ACTIVITIES sub-dealer and farmers Unawareness, about Ankur seeds varieties hence, they must take care on the Useful object such as,
1.

ATTENTION/AWARENESS:

It is the starting point in the sales process. The Unawareness according the retailer must be attracted, want that the product is able to satisfy the retailers.
2.

INTEREST:

By organizing Demo, Programmes or workshop ,we can Create an interest in the mind of the subdealer and farmer ,the sub-dealer and farmer made realize how the product will benefit him and must fill curious to know more about product, its features and merits.
3.

DESIRE:

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We must ignite the desire of the product after securing the attention and after arousing his interest in the product. From the stage of interest to buy the product, we must use all our powers of persuasion and conviction to create on urge to buy.
4.

ACTION:

It means gaming an order. The addition of the first three Stages should be the actual purchase of the product. The dealers must be induced to buy our product. MEDIA OF ADVERTISEMENT: The advertisement message has to be convey to the Sub-dealer and farmer through some means or channel. DIRECT ADVERTISEMENT: Sales literature, Samples, Circulars,Catalogues, Price List, Certification of product,Broachers,Folders,Sending greeting cards on Occasion. INDIRECT ADVERTISEMENT: Press: News papers, Agro magazines, Journals, Periodicals. Outdoor: Posters, Hoarding, Painting, Travelling display Film, T.V.: Slides, feature films, Sponsored programmes etc Radio: Spot and sponsored programmes. PRACTICAL ADVERTISEMENT THROUGH POINT OF VIEW:
y y y

Taking field demonstration, workshops, taking reviews, and appraisals. Show them video cassettes, counter sale Purchasing plot by company itself, cultivate various varieties on

These research plots and inviting the farmers to see the results.

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DEVELOPMENT ACTIVITIES: Company take the steps in development of research department have the more than 100 scientist working there with high technology Laboratory

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THE LIST OF SEEDS COMPANIES IN THE MARKET

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

Nuziveedu Seeds Pvt. Ltd. Ankur Seeds Pvt. Ltd. Nath Seeds Pvt. Ltd.SS Rasi Seeds Pvt. Ltd. Krishidhan Seeds Pvt. Ltd. Mahyco Seeds Pvt. Ltd. Nirmal Seeds Pvt. Ltd. Ajeet Seeds Pvt. Ltd. Kaveri Seeds Pvt. Ltd. Vibha Seeds Pvt. Ltd. Zuari Seeds Pvt. Ltd. Atash Seeds Pvt. Ltd. Paras/Monsanto Seeds Pvt. Ltd. Manish Biotech Pvt. Ltd. Yashoda Seeds Pvt. Ltd. Tulsi Seeds Pvt. Ltd. Vikram Seeds Pvt. Ltd. J.K. Seeds Pvt. Ltd. Pravardhan Seeds Pvt. Ltd. Bayer Seeds Pvt. Ltd.

SWOT ANALYSIS OF ORGANIZATION STRENGTH: 80% Farmers satisfy of ankur seeds of cotton .

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WEAKNESS: Company has small boll size of seeds varieties. There is no regular visit of sales person to farmer thats why some farmer not satisfied. OPPORTUNITY: Company can launch new varieties of large boll size having more no. of branches. THREATS: In the market there are many seeds companies

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BIBLIOGRAPHY
y y y y

INTERNETWWW.GOOOGLE.COM WWW.ANKUR SEED .COM WWW.SCRIBD.COM

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