Maharashtra Hybrid Seeds Company Limited Expanding Indian Agriculture to Different Nations

MAHARASHTRA crossing SEEDS COMPANY LIMITED 1 This is a licensed proceeds of lot look into and should not be copied T ABLE OF CONTENTS 1. Executive Summary Maharashtra crossbredizing Seeds community check 2. Maharashtra interbreeding Seeds phoner particular Business Overview 2. 1. 2. 2. major Investments in the high society Evolution 2. 3. Maharashtra cr witness of thorns Seeds follow limit Organisational Structure 2. 4. 3. Corporate Timeline Business amaze of Maharashtra loan-blend Seeds ships comp either special(a) Maharashtra loanblend Seeds family throttle Product Portfolio . 1. 3. 2. Field coif Seeds 3. 3. Oil Seeds 3. 4. 4. loan-blend Cotton Vegetable Crop Seeds Maharashtra Hybrid Seeds smart set exceptional monetary and Valuation abstract 4. 1. Valuation Analysis and Financial Summery 5. Maharashtra Hybrid Seeds society Limited Analyst Recommendations 6. Maharashtra Hybrid Seeds Comp any(prenominal) Limited SWOT Analysis 7. Maharashtra Hybrid Seeds Company Limited Key Professionals 7. 1. 8. Management Profile Macro Analysis of Seed diligence 8. 1. Indian Hybrid Seed Industry foodstuff Size, FY2008-FY2012 8. 2.Indian Hybrid Seed Industry particleations, FY2012 8. 2. 1. 8. 3. By Type of Crops commercialise divide of Major Players in the Indian Hybrid Seed Industry, FY2012 8. 3. 1. By Hybrid Cotton 8. 3. 2. By Hybrid Field Crop Seed 8. 3. 3. By Hybrid Vegetable Crop Seed 2 This is a licensed merchandise of Ken search and should not be copied 9. Maharashtra Hybrid Seeds Company Limited militant Analysis 9. 1. By Products Offered/ gross/ Business Strategy 10. Maharashtra Hybrid Seeds Company Limited Management scene and Future Projections 10. 1. 11.Maharashtra Hybrid Seeds Company Limited Future Projection Appendix 11. 1. Market Definitions 11. 2. Abbreviations 11. 3. seek methodology 11. 4. Disclaimer 3 This is a licensed product of Ken question and should not be copied L IST OF FIGURES accede 1 Maharashtra Hybrid S eeds Company Limited Corporate Timeline 1964-2013 Figure 2 Maharashtra Hybrid Seeds Company Limited Organizational Structure Figure 3 Maharashtra Hybrid Seeds Company Limited Business Model Figure 4 Maharashtra Hybrid Seeds Company Limited Product Portfolio Figure Maharashtra Hybrid Seeds Company Limited Financial Performance on the butt of Revenues and EBIT in INR Crore, FY2008-FY2012 Figure 6 India Hybrid Seed Industry Market Size and parcel in the Overall Indian Seed Market on the radix of Revenue in INR Crore and percentage, FY2008-FY2012 Figure 7 India Hybrid Seed Industry Segmentation on the base of office in the Overall Hybrid Seed Industry in Percentage, FY2012 Figure 8 Market helping of Major Players in Indian Hybrid Seed Market on the Basis of Contribution by Revenue in Percentage, FY2012Figure 9 Market Sh ar of Major Players in Indian Hybrid Cotton Seed Segment on the Basis of Contribution by Revenue in Percentage, FY2012 Figure 10 Market Sh ar of Major Players in Indian Hybrid Corn Seed Segment on the Basis of Contribution by Revenue in Percentage, FY2012 Figure 11 Market Share of Major Players in Indian Pearl Millet Seed Segment on the Basis of Contribution by Revenue in Percentage, FY2012 Figure 12 Market Share of Major Players in Indian paddy field Seed Segment on the Basis of Contribution by Revenue in Percentage, FY2012Figure 13 Market Share of Major Players in Indian Vegetable Seed Segment on the Basis of Contribution by Revenue in Percentage, FY2012 Figure 14 Maharashtra Hybrid Seeds Company Limited Future Projections on the Basis of Revenues and EBIT in INR Crore and Percentage, FY2013-FY2017 Figure 15 Non-linear Regression Analysis and Scatter Chart Based upon Indian Hybrid Seed Industry Market size, FY2008-FY2012 4 This is a licensed product of Ken Research and should not be copied L IST OF TABLESTable 1 Maharashtra Hybrid Seeds Company Limited Financial Summary on the Basis of Revenue, Growth and EBIT permissiveness in INR Cror e and Percentage, FY2008-FY2012 Table 2 Maharashtra Hybrid Seeds Company Limited Major Investments in Company Evaluation on the Basis Deal Type, Stake, Deal apprize and Implied Enterprise take to be in INR Crore Table 3 Maharashtra Hybrid Seeds Company Limited Products Offered in Hybrid Cotton Seeds on the Basis of disparate Zones in India Table 4 Maharashtra Hybrid Seeds Company Limited Products Offered on the basis of Different Field Crop SeedsTable 5 Maharashtra Hybrid Seeds Company Limited Products Offered on the Basis of Different Oil Seeds Table 6 Maharashtra Hybrid Seeds Company Limited Products Offered on the Basis of Vegetable Crop Seeds Table 7 Company Comparables on the Basis of Revenue in INR Crore, FY2008-LTM year ending thirty-first December 2012 Table 8 Company Comparable Analysis on the Basis of Market Capitalization, brighten Debt and Enterprise Value and Valuation Multiples in INR Crore and Multiples, LTM 31 st December 2012 Table 9 congress Valuation Analysis on the Basis of Deal Value, Deal Stake and Multiples in INR Crore, Percentage and MultiplesTable 10 Maharashtra Hybrid Seeds Company Limited Board of Directors Table 11 Company Comparables on the basis of operate Offered, Revenue and Business Strategies Table 12 Regression Coefficients of the Maharashtra Hybrid Seeds Company Limited Table 13 Regression Intercepts of the Maharashtra Hybrid Seeds Company Limited 5 This is a licensed product of Ken Research and should not be copied E XECUTIVE SUMMARY MAHARASHTRA HYBRID S EEDS COMPANY LIMITEDMaharashtra Hybrid Seeds Company Limited withal known as Mahyco, is a privately owned company and is headquartered in Jalna, Maharashtra. Mahyco is among the largest hybrid beginning producers in India. The company is involved in the enquiry and emergence, output, marketing and distribution of various hybrid beginnings much(prenominal) as cotton microbes, field crops, vegetable crops and oil seeds. The company has a prime focus in the gene ration and distribution of hybrid cotton seeds in the Indian hybrid seed market.Key Differentiators ? ? ? ? More than 1,000,000 cultivators are involved in seed outturn Competition and Positioning ? ? ? ? Leading position in the Indian hybrid cotton market Key Developments ? Worlds foremost company to commercialize F1 hybrid cotton based on GMS/CMS system ? ? ? ? Financial Summary Maharashtra Hybrid Seeds Company Limited Financial Summary on the Basis of Revenue, Growth and EBIT Margin in INR Crore and Percentage, FY2008-FY2012 Particulars FY2008E FY2009 FY2010 FY2011FY2012 Revenue Growth% EBIT Profit% 6 This is a licensed product of Ken Research and should not be copied C ORPORATE TIMELINE On eleventh November 1964, the company started its operation with the prime focus towards genetic look for of plant and production of different varieties of seeds. In 1966, the company started its first look into and development center in India with an objective of develop new products and e xtend its penetration in the Indian seed market. In 2013, Performance Plant Inc. nd Maharashtra Hybrid Seeds Company Limited have entered into a license agreement Maharashtra Hybrid Seeds Company Limited Corporate Timeline 1964-2013 M AHARASHTRA HYBRID SEEDS COMPANY LIMITED O RGANISATIONAL STRUCTURE The company has 9 bear on centers across the realm situated at Maharashtra, Karnataka, Andhra Pradesh, Gujarat, Madhya Pradesh, Rajasthan, Punjab, Haryana and Uttar Pradesh with annual seed processing capacity of over quintal in these 9 centers 7 This is a licensed product of Ken Research and should not be copiedMaharashtra Hybrid Seeds Company Limited Organizational Structure B USINESS MODEL OF MAHARASHTRA HYBRID SEEDS COMPANY L IMITED Business bout of the company starts with the procurement of input supplies for query and development departments. Input supplies are the principal driver for the production of new and improved hybrid seed products After harvesting of seeds, the comp any transfers these seeds to processing centers for further processing and tonicity testing 8 This is a licensed product of Ken Research and should not be copiedOnce the products are finished and packed the company distributes these products to different distributors across the nation Maharashtra Hybrid Seeds Company Limited Business Model M AHARASHTRA HYBRID SEEDS COMPANY LIMITED P RODUCT PORTFOLIO The company has a product portfolio of more than hybrid products in different crop species offering hybrid cotton, field crops, oilseeds and vegetables crops. The company offered types of hybrid cotton, types of field crops, types of oil seeds and different types of vegetable seeds verities. This is a licensed product of Ken Research and should not be copied The company is continuously centering on the research and developments of new products such as genetically modified (GM) rice, wheat, cauliflower, pigeon pea and okra Under the guidance of Department of Biotechnology, Govern ment of India the company has been involved in different projects for the development of new products and new technologies and also the company has entered into various partnerships with different institutionsMaharashtra Hybrid Seeds Company Limited Product Portfolio 10 This is a licensed product of Ken Research and should not be copied M AHARASHTRA HYBRID SEEDS COMPANY LIMITED F INANCIAL AND VALUATION abstract V ALUATION ANALYSIS AND monetary SUMMERY Revenue of the company has shown a CAGR growth of % from FY2008-FY2012. The company has witnessed this growth due to constant development of new products and by improvements in its received product portfolio. Mahyco has pent INR core in FY2011 on research and development as compare to INR crore in FY2010 which showcase the companys interest to enhance the quality of its products In FY2011 and FY2012 the company has shown a marginal growth of % and % respectively in revenues mainly due to change magnitude competition in the hyb rid cotton market As on 31st December 2012, Mahyco has been wanted at INR crore on company comparables basis. The company has been valued at average revenue multiple of x of different human raceally listed seed companies in IndiaMaharashtra Hybrid Seeds Company Limited Financial Performance on the basis of Revenues and EBIT in INR Crore, FY2008-FY2012 700. 0 600. 0 500. 0 400. 0 300. 0 200. 0 100. 0 0. 0 FY2008 FY2009 Revenues FY2010E FY2011 FY2012 EBIT 11 This is a licensed product of Ken Research and should not be copied Company Comparables on the Basis of Revenue in INR Crore, FY2008-LTM year ending 31st December 2012 Revenue (in INR Crore) FY2008 FY2009 FY2010 FY2011 FY2012 LTM JK Agri genetics Ltd. * Advanta India Limited** Monsanto India Ltd. Kaveri Seeds Company LimitedNath Seeds India Limited Company Comparable Analysis on the Basis of Market Capitalization, illuminate Debt and Enterprise Value and Valuation Multiples in INR Crore and Multiples, LTM 31st December 2012 (INR Crore, unless Stated) Company Last twelve Months (LTM) Year Ending December 2012 Market Cap Net Debt Enterprise Value (EV) EV/Revenue EV/EBITDA P/E JK Agri Genetics Ltd. Advanta India Limited Monsanto India Ltd. Nath Seeds India Limited Kaveri Seeds Company Limited Mean median(prenominal) 12 This is a licensed product of Ken Research and should not be copiedRelative Valuation Analysis on the Basis of Deal Value, Deal Stake and Multiples in INR Crore, Percentage and Multiples Date Target Company Deal Type 21-Feb-13 R J Biotech Limited IPO 24-Nov-12 Century Seeds Private Limited inbound Acquisition 26-Jul-12 Advanta India Limited Inbound Acquisition 21-May-12 Bisco Bio Sciences Private Limited Inbound Acquisition 14-May-12 NaanDanJain Irrigation Limited home(prenominal) Acquisition 24-Apr-12 Zero Waste Agro Organics Private Limited Domestic Acquisition 2-Apr-12 Super Agri Seeds Private Limited Private Equity Fund Raise 5-Mar-12 GoldN ChicksLimited Inbound Acquisition 9-Dec-10 Metahellix Life Sciences Domestic Acquisition 7-Jan-08 Unicorn Seeds Limited Block Trade 22-Dec-07 Syngenta India Limited Inbound Acquisition 1-Jun-07 Golden Seeds Private Limited Deal Value INR (Cr) Stake % Implied EV/ Revenue Implied EV/ EBITDA Implied EV/ PAT Block Trade Mean median value 13 This is a licensed product of Ken Research and should not be copied M ACRO ANALYSIS OF SEED INDUSTRY M ARKET SHARE OF MAJOR PLAYERS IN THE INDIAN HYBRID S EED INDUSTRY, FY2012 The Indian hybrid seed industry is dominated by Nuziveedu Seeds Private Limited.The company has a market destiny of % in the overall Indian hybrid seed industry followed by Mahyco and Monsanto India particular(a) which have a share of % and % respectively For Monsanto India, corn hybrid seed was the single biggest focus in seed business. by its Project Golden Rays project the company has signed a public-private partnership with Rajasthan state government for change magnitude the maize hybrid yields by two folds Market Share of Major Players in Indian Hybrid Seed Market on the Basis of Contribution by Revenue in Percentage, FY2012Nuziveedu Seeds Private limited Maharashtra Hybrid Corporation (Mahyco) Monsanto India Limited (MIL) Rasi Seeds Private Limited Bayer Crop Science limited India induct Seeds Syngenta India Ltd. Others 14 This is a licensed product of Ken Research and should not be copied M AHARASHTRA HYBRID SEEDS COMPANY LIMITED M ANAGEMENT OUTLOOK AND FUTURE PROJECTIONS The company is planning to increase its focus on product portfolio of the company by increasing its expenditure on research and development.It is pass judgment that the company leave behind increase in research and development expenditure from INR 55. 0 crore to INR 100. 0 crore per year in the inhabiting four years. These expenditures willing have a direct impact on the companys revenues by bringing new and innovative products. Additionally, these research and development expenditures will also improve the quality of current product portfolio of the company which will look at to more cost efficient production process for the company. overdue to this revenue of the company is expected to cross INR 2,000. crore till FY2017 as improvement in products of the company through and through research and development will generate positive cash flows in the future and will lead to amplification of companys revenues. It is expected that with the increase in revenues, operating margin of the company would also showcase an increasing trend. Additionally, Mahyco is planning to expand its operations in different nation specially neighbor countries of India by bringing new and innovative products so as to increase its penetration in the internationalist seed market.M AHARASHTRA HYBRID SEEDS COMPANY LIMITED FUTURE P ROJECTION Maharashtra Hybrid Seeds Company Limited is expected to cover hybrid paddy seed market in different countries such as and . In FY2012 the company has already started its comm ercial production in these nations and expected to increase the commercial production of these products in future as well. This will increase the market penetration of the company in the international seed market and will amplify the companys revenues.Additionally, the company is expected to diverse its focus towards the production of hybrid rice seeds in the Indian seed market. As of now hybrid rice is contribute only % of the companys overall revenues 15 This is a licensed product of Ken Research and should not be copied Maharashtra Hybrid Seeds Company Limited is planning to introduce genetically modified (GM) seeds in food items in and . Introduction of these GM seeds will increase the companys revenues from the international seed market The company is expected to showcase a revenue growth at a CAGR of % from FY2012FY2017.Mahyco is focusing on the development of Bollgard-II roundup ready flex cotton (BGII RRF) EBIT margin of the company is expected to be small under pressure as the company is expected to spend substantial amount in research and developments. EBIT of the company is expected to grow at a CAGR of % from FY2012-FY2017 Maharashtra Hybrid Seeds Company Limited Future Projections on the Basis of Revenues and EBIT in INR Crore and Percentage, FY2013-FY2017 2,500. 0 26. 0% 25. 0% 2,000. 0 1,500. 0 23. 0% 22. 0% 1,000. 0 in Percentage INR Crore 24. 0% 1. 0% 500. 0 20. 0% 0. 0 19. 0% FY2013 FY2014 Revenue FY2015 FY2016 FY2017 EBIT Margin 16 This is a licensed product of Ken Research and should not be copied D ISCLAIMER The research reports provided by Ken Research are for the personal information of the authorized recipient and is not for public distribution and should not be reproduced or redistributed without prior permission. You are permitted to print or transfer extracts from this material for your personal use only. None of this material may be used for any commercial or public use.The information provided in the research documents is fro m publicly available data and other sources, which are reliable. 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