group 11- bayer crop science

8/8/2019 Group 11- Bayer Crop Science

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G R O U P - 1 1

S AC HI N K UM AR S AN DE EP S AI NI

S AN DE EP S IN GH

S AN G EE TA C H AU HA N

S A N J A Y K U M A R

S AN KE T B EL G UD RI


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Indian Seed Industry

y Indian seed industry is 6th largest in the world.

y Turnover worldwide Rs. 1,36,000 cr. ($34b)

y Turnover in India Rs. 6000 cr. ($1300 m)

y Growing @ 12-13% in India & 5% in world.

y Indian contribution is 4-5% of global industry.

y Usage pattern : 66.2% hybrids, 22.3% OPV of field crops &

11.5% OPV of vegetable seeds


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External environment analysis of Indian SeedIndustry

y Political:

National seeds policy

Assistance for boosting seed production in

private Sector. 222 such plants have beensanctioned for an amount of Rs. 14.86 crore forsmall entrepreneurs in 16 states, with aprocessing capacity of 42.94 lakh quintals of seedand a storage capacity of 16.68 lakh quintals

National Commission on Farmers.

NGOs such as Green Peace opposing GM seeds.


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y Economic: Inflation

Interest rate

Policy on the Export and Import of Seeds and PlantingMaterials:Exports and imports of seeds have increased with the

rationalization and simplification of the export and import regime.y Social: Seed Village Scheme

Central Government approved the Protection of Plant Varieties andFarmers Rights (Criteria for Distinctiveness, Uniformity, Stability

and Registration) Regulations, 2009. Educated farmers are more inclined towards adoption of

technological advancements such as hybrids and GM crops.

Small and marginal farmers use more of hybrid seeds as they havesmall land holdings from which they want to reap higher profits.


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.contd.

y Technology: During 2009-10, Rs. 4.64 crore has been released for the general

upgrading of laboratories and State Seed Certification Agencies,equipping laboratories for International Seed Testing Association(ISTA) accreditation, DNA fingerprinting, BT cotton kits, grow-outtests, etc.

Technology incentivesNational Training Programme during 2009-2010 on 'Seed Quality Regulation', 'Seed Testing', 'Seed Law SeedsEnforcement', 'Integrated Seed Improvement , 'Seed Health Testing',and 'Varietal Purity Testing for Specified Traits and Pre and Post-

HarvestM

anagement Techniques for Seed Quality Assurance. Bt. Cotton Seeds: At present, 624 Bt Cotton hybrids, including one

variety, BN Bt cotton, developed by the Central Institute for CottonResearch,Nagpur (ICAR) have been approved by the GeneticEngineering Approval Committee (GEAC)


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.contd.

y Ecological: Seed inspectors been provided with powers of enforcement

under the Environment(Protection) Act, 1986 to regulate thequality of genetically modified (GM) crops.

Hybrid seeds require less irrigation.

Low fertilizer doses are required.

Pest incidence is high in hybrid crops.

y Legal:

Strengthening of Seeds Quality Control Organisations(StateSeed Certification Agencies & State Seed TestingLaboratories): to stop the sale of sub-standard seeds and toseize their stocks.

Prices and black marketing of seeds should be checked and

controlled for the farmers


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Porters Five Forces

y Supplier power (Moderate) Plant breeding, including genetic research and cultivar assessment.

Seed Production either in companies own dependences or byProducts.

The industry is organized in public & Private entities with theobjective of roles of research, production, Quality Control andMarketing.

y Buyer power (High)

There are a number seller available in the Indian seed market. Farmer who needs to input seed at low price & high Quality.

If buyer is not satisfied with existing brand of seed so the buyerswitch over to other companys brand.


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y Threat of new entrants (High) Research has provided new technologies. Special relevance of genetic engineering, essential component of

biotechnology. Entry barriers are low

y Threat of substitution As such there is no substitute of seed available but there are

technologies like vegetative propagation and tissue culture aresubstitutions in horticulture but agricultural seeds are out of theirpurview.

For hybrid seeds, farmers carry over seeds and local inbreds can bethe substitutes.

y Rivalry There are approximately 223 Companies engage in production of

seed in India.


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Crop Science

Crop protection Environmental health Bioscience


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Company Profile

Chairman of the Board ofManagement

Friedrich Berschauer

Divisions Crop ProtectionEnvironmental Science

BioScienceSales EUR 6,510 million

Net Cash Flows EUR 745 million

R&D investment EUR 653 million

VISIONTo be a leading partner in providing innovative products and

combined solutions for the production ofquality food, feed and fiber tomeet the global challenges of tomorrow.


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Bayer Bioscience

y Products:Vegetable seeds (umbrella brand- NUNHEMS):Mostly all

vegetable seeds.

Agricultural seeds:

Global umbrella brand- ARIZE

Hybrid cotton- Surpass

Pearlmillet- Proagro


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Current Position of Bayer Bioscience in India

y Bayer BioScience, headquartered in Hyderabad Indiahas about 400 employees, and has research,production and an extensive sales network spread

across the country.y It has capacity to process and package more than

200 metric tons of high - quality seed per day.

y Bayer Bioscience is market leader in Hybrid rice in

India having market share of 43%y Bayer Bioscience is market leader in Hybrid pearl

millet in India having market share of 32%


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Strategic objectives of Bayer

y To achieve sustainable profitability by: Capitalizing on our strong and well-balanced portfolio with a special

focus on innovative and high-margin products . Optimizing efficiency in operative and administrative processes.

y To leverage on active portfolio management by: Capitalizing on successful life cycle management Improving the portfolio mix

y To foster industry leadership in innovation by: Focusing on business and technology innovation to deliver a

sustainable pipeline of new active ingredients

Addressing needs for bio-based resources through plantbiotechnology

y To be the most attractive employer in our industry by: Identifying, retaining and developing the best talent employees


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Sustainability strategy of Bayer

CorporateSocial

Responsibility

Stakeholdersatisfaction throughresponsible Business

activities

Products and innovations


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Competitive Advantage of Bayer

y Bayer uses Differentiation strategy in broad segmentthrough:

High value innovative products.

Strong R&D department. Massive & innovative campaigning strategy.

Good financial muscle by which Bayer can promote its productin the market and increase its distribution channels.

Umbrella brand strategy for every product and large productrange.

Because of leading position in the crop protection sector inIndia it has brand image in the mind of Indian farmers


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group 11- bayer crop science

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