Slide 1: Developments & Opportunities in Indian Agri-Inputs Industry
Developments & Opportunities in Indian Agri-Inputs Industry KR Venkatadri Chief Operating Officer 1 Copyright © Rallis India Limited. All rights reserved.
Slide 2: Copyright © Rallis India Limited. All rights reserved.
2 Copyright © Rallis India Limited. All rights reserved.
Slide 3: Importance of Agriculture in India: Changing Scenario
Importance of Agriculture in India Changing Scenario… Reduction in arable land About 75% people are living in rural areas (ha) This has put immense pressure on and are still dependent on Agriculture. the current available arable land About 43% of India’s geographical area is for the food and nut
Slide 4: Paving a New Era of Growth Opportunities
CAGR of Increase in Area Under all Crops 12.0% 10% 10% 10.0% #CAGR of last 33 years from 1981 to 2014-15 8.0% 6.0% 4% 2% 4.0% 1.5% 1.5% 2% 1.4% 1.3% 2% 1.0% 0.6% 2.0% 0.2% 0.1% 0.0% …..Paving a New Era of Growth Opportunities • India ranks Second in fruits and vegetables production in the world, aft
Slide 5: F&V Segment & Opportunities
F&V Segment & Opportunities Observations: Highest increase in Acreages & Production has happened in Flowers, Fruits & vegetables after Soybean. Contribution of fresh & processed Fruits & Vegetables in overall export is 2nd highest after Cereals. The growth of Horticulture production is higher
Slide 6: World Food Production needs (2020 and beyond)
World Food Production needs (2020 and beyond) Global Population will reach USD 9 Billion by 2050 requiring twice the food to be produced from constant land area Need for productivity and increasing pressure on profit is putting pressure on sustainability If world were to produce 2.5 times of cur
Slide 7: Quality Seeds, Quality Inputs, Farm Practices
More production from less land can be accomplished only with combination of... Quality Seeds Quality Inputs Farm Practices Improved quality seeds Increased input Improved Seed replacement efficiency- Nutrients and Improved farming ratio: Shift from farm saved water practices - seeds to hybri
Slide 8: Agribusiness Opportunities in India
Agribusiness Opportunities in India 2) Leveraging Trends in 1) Provide Food Security 3) Value addition in Agriculture Agriculture Improving Productivity Eliminating Wastages Labour shortage Post harvest / Seeds Inputs : Herbicides, New Warehousing / Cold Nutrients Technologies, etc cha
Slide 9: Copyright © Rallis India Limited. All rights reserved.
9 Copyright © Rallis India Limited. All rights reserved.
Slide 10: Copyright © Rallis India Limited. All rights reserved.
10 Copyright © Rallis India Limited. All rights reserved.
Slide 11: Indian Seed Market- Size
Indian Seed Market- Size Farm saved seed:75% /Commercial Seed:25% Public bred hybrids:11%,OP Varieties:61%,Proprietary hybrid:21% of market value 11 Copyright © Rallis India Limited. All rights reserved.
Slide 12: Hybrid Seed Industry in India
Hybrid Seed Industry in India Market size(USD Bn) Product Segmentation 1.5 12% 3% 1.29 1.11 0.86 17% 50% 1 0.65 18% 0.5 0.39 0 Cotton Corn/Maize Vegetable Others Paddy FY 09 FY 10 FY 11 FY 12 FY 13 • Hybrid Seed Industry expected to reach INR 153 • BT Cotton contributed 50% of hybrid seed market bil
Slide 13: Indian Seed Market: Growth over years and growth drivers
Indian Seed Market :Growth over years and growth drivers Regulatory • Enactment of suitable legislations • Market liberalization to increase availability of quality seeds framework • Relaxation of norms for export to overseas country • Sharing of germplasm and breeder seeds of public-breeder varieti
Slide 14: Copyright © Rallis India Limited. All rights reserved.
14 Copyright © Rallis India Limited. All rights reserved.
Slide 15: Yield improvement potential and losses caused by pests in India
Yield improvement potential percentage for Losses caused by diff. pests in India Crop Production 15 Copyright © Rallis India Limited. All rights reserved.
Slide 16: Per hectare yield in India lower than the rest of the world
Per hectare yield in India lower than the rest of the world: Yield Comparison Tonnes/ha Source: FICCI report, Industry reports Rallis Internal Analysis As workforce in agriculture in India reduces, all stakeholders need to look at increasing yields to be able to meet growing demand which will requir
Slide 17: Per capita consumption of Agrochemicals is Lowest in India
Per capita consumption of Agrochemicals is Lowest in India (Kg/Ha) Consumption of crop protection products in India is amongst the lowest in the world. Source: FICCI report, Industry reports Rallis Internal Analysis Some of the important reasons for low consumption- Low purchasing power of farmers
Slide 18: Indian Crop Protection Market (USD Bn)
Indian Crop Protection Market (USD Bn) The Indian CP industry is estimated at USD 4.25Bn in FY14 and is expected to grow at a CAGR of 12% to reach USD 7.5Bn by FY19. The exports currently constitute almost 50% of industry and are expected to grow at a CAGR of 16% to reach USD 4.2Bn by FY19, resu
Slide 19: India in Contract Manufacturing
India in Contract Manufacturing Asia share in the global chemical industry is at 45% share. With Asia’s growing contribution to the global chemical industry, China and India emerge as one of the focus destination. Make in India concept mooted by Government of India along with initiatives by In
Slide 20: Copyright © Rallis India Limited. All rights reserved.
20 Copyright © Rallis India Limited. All rights reserved.
Slide 21: CIB RC 371
CIB RC 371 Registration Committee (RC) has proposed the following policy change to reduce imports and give thrust to indigenous manufacturing Molecules registered under indigenous manufacturing category, no certificate of registration of that molecule for imports shall be granted Those companies
Slide 22: Impact of change in Regulation on Seed Industry
Impact of change in Regulation on Seed Industry • 2015 – 16 the MRP of Bt Cotton is ₹ 930 / packet ₹184 – Trait Fee • 2016 – 17 the MRP has been reduced to ₹ 800 / packet ₹49 – Trait Fee Trait fee to be reduced by 10% every year till it becomes Zero. Expected Outcomes End user is benefited
Slide 23: Impact of change in Regulation on Pesticide Industry
Impact of change in Regulation on Pesticide Industry • As per RC 371 Bio-stimulants have to be included under CIB or PMB Genuine Bio-stimulant manufacturers will approach CIB or PMB for approval Spurious Bio-stimulant manufacturers will be forced to exit creating a vacuum for Pesticide players
Slide 24: Copyright © Rallis India Limited. All rights reserved.
24 Copyright © Rallis India Limited. All rights reserved.
Slide 25: Impact of Union Budget on Industry
Impact of Union Budget on Industry Key Highlights • Increased agriculture credit • Digitization of PACS • Increased coverage of Fasal Bhima Yojna • Extra budget allocation to have focus on micro irrigation • Thrust on rural employment & MGNREGA Impact • Enhanced purchasing capacity of the farmer • R
Slide 26: Shift from Agriculture to Agribusiness
Shift from Agriculture to Agribusiness 26 Copyright © Rallis India Limited. All rights reserved.
Slide 27: India's consumption basket is expected to move towards premium foods
India’s consumption basket is expected to move towards premium foods Consumption has been shifting from plant based proteins such as cereals pulses, to animal- based protein such as milk and meat. Expected increasing demand of Milk & Meat and Fruits and Vegetables Changing consumption is leading to
Slide 28: Production has shifted from food grains to high value crops
Production has shifted from food grains to high value crops Cereals and pulses are likely to grow at 2 per cent per annum, lower than the overall growth, while milk (3 per cent per annum), meat (including seafood, at 5 per cent per annum), and fruits and vegetables (4 per cent per annum) will contri
Slide 29: Food Processing and Exports
Food Processing and Exports Share of processing 40% 35% Less than 10% of agri produce 30% 26% undergoes processing in India. 20% With government support and SME 10% 6% 2% to increase, post processing in rural 0% Milk Poultry Fruits & Veg Marine markets expected to rise. Agricultural Exports – Unfulf
Slide 30: Changing Needs and Trends in Agriculture
Changing Needs and Trends in Agriculture 30 Copyright © Rallis India Limited. All rights reserved.
Slide 31: How the Farmer needs would change in next 5 years in India
How the Farmer needs would change in next 5 years in India Information on Whom to Timely supply Crops, Pest/Disease, connect in case of products at Soil, Market Rates of problems right prices Current Needs Information on farm Collaborate with Get market implements, friends and information and Insura
Slide 32: Factors Aiding the Shift
Factors Aiding the Shift Trends in India Thrust on modernization Digital Bharat - Rapid penetration of internet Exponential growth of smartphones in rural Increased mobile literacy Reduction in cost of sensors and satellite image procurement Countries like USA, Canada, etc. have majorl
Slide 33: Precision Farming
Precision Farming 33 Copyright © Rallis India Limited. All rights reserved.
Slide 34: Summary of Opportunities in Indian Agri-Input Industry
Summary of Opportunities in Indian Agri -Input Industry • Agriculture productivity should be increased to 60% to grow Agri Productivity enough food for projected Global population in 2050 • Hybrid Seed Industry expected to reach INR 153 billion by Seed Industry FY2018 growing at a CAGR of 17% from F
Slide 35: Copyright © Rallis India Limited. All rights reserved.
35 Copyright © Rallis India Limited. All rights reserved.