Upsurge Seeds of Agriculture Ltd Management Discussions

ANNEXURE -4

Indian Seed Industry Structure and Developments: An Overview:

The Indian agricultural seed industry is a crucial component of the countrys agriculture sector. It plays a vital role in providing farmers with high-quality seeds for various crops, thus influencing agricultural productivity and overall food security. To understand the structure of the Indian agricultural seed industry in detail, lets break it down into key components:

Seed Types:

Open-Pollinated Varieties (OPVs):

Traditional seeds that are saved from one generation to the next.

Hybrid Seeds: Produced by cross-breeding two different parent plants, resulting in improved crop characteristics. Hybrids often offer higher yields and uniformity. Genetically Modified (GM) Seeds: Although not widely adopted, GM crops like Bt cotton have been introduced in India. These seeds have been genetically engineered to resist pests or tolerate herbicides.

Seed Companies:

Public Sector: Government agencies and institutions like the Indian Council of Agricultural Research (ICAR) and state agricultural universities are involved in seed production, research, and distribution. Private Sector: Private seed companies, both domestic and multinational, play a significant role in the industry. They invest in research and development (R&D), marketing, and distribution of seeds. Seed Research and Development:

Public Research: Public sector institutions conduct research on crop breeding, seed technology, and biotechnology. This research often leads to the development of new seed varieties. Private Research: Private seed companies invest heavily in R&D to develop hybrid seeds and biotech traits. They often collaborate with international partners for access to technology. Seed Production:

Seed Distribution:

Seeds are distributed through a network of dealers, distributors, and retailers. In some cases, companies have their own retail outlets.

Government agencies often distribute seeds through public distribution systems and government-owned seed corporations.

Developments:

The Indian seed industry was undergoing several developments and changes. Such as Biotechnology and Genetically Modified (GM) Crops: India had seen increased adoption of GM crops, primarily Bt cotton, despite regulatory challenges and debates around other GM crops like Bt brinjal. The government continued to regulate GM crops cautiously.

Hybrid Seed Technology: The development and adoption of hybrid seed varieties were on the rise for various crops like rice, maize, and vegetables. Private seed companies were actively involved in research and development efforts to create high-yielding hybrid seeds.

Technology and Digitalization: There was a growing emphasis on the use of technology in seed production, distribution, and farm management. Digital platforms and apps were being used for crop monitoring, seed selection, and market access.

Sustainability and Organic Seeds: There was an increasing interest in sustainable and organic farming practices. Some seed companies were focusing on developing organic seed varieties to cater to this growing demand.

Seed Certification and Quality Standards: The Indian government continued to enforce strict seed quality standards through regulatory bodies like the Seed Control Order and the National Seeds Corporation (NSC).

Exports: The Indian seed industry had been exploring export opportunities for various seed varieties, especially vegetables and high-value crops. Exporters had to comply with international phytosanitary standards.

Public-Private Partnerships (PPP): Collaborations between government research institutions and private seed companies were becoming more common, particularly in the development and commercialization of new seed varieties.

Seed Startups and Entrepreneurship: Several startups and entrepreneurial ventures were entering the seed industry, focusing on niche markets and innovative seed technologies.

Government Initiatives: The Indian government had been implementing various initiatives to promote seed production, including the National Food Security Mission (NFSM) and the National Mission on Oilseeds and Oil Palm (NMOOP), which aimed to enhance oilseed production through improved seed varieties.

The seed industry is dynamic, and developments can change rapidly due to policy changes, market dynamics, and technological advancements.

BUSINESS OVERVIEW:

We are a technology driven seeds manufacturing Company engaged in business of growing, developing, processing and marketing of variety of seeds for a range of field crops and vegetables. We are primarily involved in seed processing wherein the improved genetic materials of the breeder seed is grown and multiplied into foundation seed. Thereafter, the foundation seed undergoes next level of processing in which the foundation seed is grown and multiplied into commercial seeds, which is then sold in market for crop production. We have different variants of seeds being sold for each crop depending upon suitability of our seeds for varying agro-climatic conditions, such as water availability, crop duration and soil attributes, across different geographic regions in India. Breeder seeds are genetically pure seed with physical purity produced from basic nucleus seed stock and procured from original breeder. Some of the state Government agricultural universities from which we procure breeder seeds include Mahatma Phule Krishi Vidapeeth, Rajasthan Agricultural Research Institute, Indian Agricultural Research Institute etc. Our company enters into seed grower production agreement with seed growing farmers for leasing thier land on lease rentals to develop and produce the foundation and commercial seeds. Under these agreements, the farmer is engaged to carry out agricultural operations over the leased agricultural land, however the ownership of the entire crop and the risk of crop failure is retained with our company. The farmers are compensated for their services of producing such seeds and for all production expenses such as land preparation, irrigation, sowing, fertilization, combat against pests and diseases, weeding, harvesting, thrashing etc. During largescale production, we monitor the crops under given field conditions and have the farmers carry out all the required steps until maturity to produce the seeds to be sold at the desired levels of quality. We choose the location for production of the seeds to be sold based on the agro-climatic conditions required for different crops, availability of skilled labour and other related infrastructure etc. Such grown commercial seeds are then processed at our processing unit, which is equipped with modern technology and is spread across an area of more than 45,000 sq. feet, situated at Kuvadva, Rajkot.

Accredited with ISO 9001:2015, our Company sells its seeds under the brand name "USA seeds". The sole focus of the company is to deliver "Quality Seeds to the Farmer" and the commitment to quality has resulted in USA Seeds being recognised as a premium brand by the farmers. Since our incorporation we have been continuously working on and improving our quality to serve our clients better.

During the year under review, the Company has produced seeds for more than 40 different field crops and vegetables and have operations across India covering Gujarat, Maharashtra, Rajasthan with more than 75 varieties of Crops. Our product portfolio includes crop seeds for Groundnut, Wheat, Cumin, Green Gram, Black Gram and vegetable seeds for Onion, Coriander Seeds, Fenugreek etc.

SWOT ANALYSIS:

SEGMENTWISE AND PRODUCTWISE ANALYSIS

PRODUCT LIST FIELD CROP VARIETY
NO.	CROP	NOTIFIED
1	GROUNDNUT	GAUG-10, GG-20, TAG-24, TG-37-A, TG-38, GG-5, TPG-41, SB-11, TG-26, TLG 45, GG-2, GJG-22, GJG-32, GJG-39, RG-559-3, GG-34, PDKVG 335, KDG-128 PHULE WARANA, JL- 776 PHULE BHARATI, GJG 33, KADIRI AMARAVATHI, KADIRI LEPAKSHI, DH 232
2	WHEAT	LOK-1, HD-2189, GW-496, GW-173, HI- 1544 (PURNA), GW-451, PHULE SAMADHAN, JW-3382, DBW-168, HI- 1605, GW 11, GW-322, GW-273, GJW 463, GW 366, GW-322,
3	CUMIN	GUJ-2, GUJ-4
4	GRAM (HARBHARA)	GUJ-1, GUJ-2. GUJ-3, GUJ-4, PKV-2, VIJAY, DIGVIJAY, VISHAL, JAKI-9218, RSG-807 (ABHAR), PHULE VIKRAM
5	LUCERNE (RAJKA)	RL-88, CO-3, AL-3,
6	BLACK GRAM (UDID)	TAU-1, T-9, DU 1, IPU 2 -43, UTTARA, MU- 2, AKU-10-1, GUJ-2
7	GREEN GRAM (MOONG)	GUJ-4, VAIBHAV, DGGV-2, VIRAT, BM- 2003-02, RMG 975, MSJ-118, SHIKHA, SML-668, SML-832, GM -6, GM-7, MEHA
8	PADDY	PDKV KISAN, GNR-3, PR-124, GAR-14, MAHISAGAR, INDIRAYANI
9	MOTH BEAN	RMO-2251
10	GUM GUAR
11	ISABGOL	GUJ-1
12	FODDER BAJRA	AFB-3, RAJ BAJRA 1
13	BAJRA	ABPC-4-3, RHB-223
14	FENNEL
15	MUSTARD	DRMRIJ-31
16	SESAME	GUJ-1, GUJ-2, GUJ-3, RT 351, G.TIL-4, G.TIL-6, PKV-NT-11, GJT-5
17	SORGHUM	M 35-1
18	FODDER SORGHUM (SSG)	GAFS 11, CSV 33 MF, SSG-898
19	FODDER MAIZE	AFRICAN TALL
20	SOYABEAN	JS-335, JS-9305, JS-9560, AMS-1001 (PDKV YELLOW GOLD), JS 20-34, KDS 726 (PHULE SANGAM ), JS 20-98, MAUS 612
21	PIGEON PEA	ICPL-87, VIPULA, BDN-2, GNP-2, GT 103, GT -104, BDN-716, GRG-811, GRG - 152, LRG-52
22	ASH GOURD	KASHI DHAVAL
23	OKRA	PARBHANI KRANTI, GAO-5
24	PALAK	ALL GREEN
25	RADISH	PUSA CHETKI, JAPANESE WHITE, PUSA HIMANI
26	RAJMA	PHULE VARAN
27	METHI	RMT-305, KASRI, PEB
28	PEA	ARKEL
29	COWPEA	DC-15, KASHI KANCHAN, KASHI NIDHI
30	CUCUMBER	PB NAVEEN
31	CLUSTER BEAN	GUJ-1, GUJ-2, RGC-1055
32	CAULIFLOWER	S AGRIM
33	CARROT	PUSA KESAR, PUSA RUDHIRA
34	BRINJAL	PUSA KRANTI, PUSA PURPLE LONG
35	BOTTLE GOURD	PHULE SAMRAT, PSPL
36	BITTERGOURD	PHULE GREEN GOLD, PREETHI
37	ONION	N-53, PUSA RED, PUSA MADHVI
38	GUAR	GUJ-1, GUJ-2, RGC-1055
39	SPONGE GOURD	PUSA SNEHA, PUSA SUPRIYA, PUSA CHIKNI
40	TOMATO	PED, PUSA GAURAV

FINANCIAL AND OPERATIONAL HIGHLIGHTS

Your Directors report that the Company has achieved turnover for the financial year ended March 2023, has increased to Rs. 82,97,22,451 /- as compared to Rs. 75,77,14,123 /- of the previous year. The Company has incurred the Net Profit of Rs. 4,75,99,416 /- during the year under review as compared to Rs. 3,96,44,271 /- of the previous year. Your Directors assures you that they would grab all business opportunities that could be seized from the market for the overall development of our business and foresee bright prospects of the Company in the years to come.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

As required under Section 134(3)(q) of the Companies Act, 2013 read with Rule 8(5)(viii) of Companies (Accounts) Rules, 2014 the Company has in place proper and adequate internal financial control system commensurate with the size, scale, complexity and nature of its business operations. The Board has adopted the policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial disclosures. The internal financial control systems of the Company are monitored and evaluated by the Directors with senior management on need based periodicity, deviations are identified and corrective actions are taken, wherever necessary. Present internal financial control measures are tested over time and no reportable material weakness in the design or operation was observed.

RISKS AND CONCERNS

Every business has both Risk and Return and they are inseparable. As a responsible management, the Companys principal endeavor is to maximize returns. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts. Our senior management identifies and monitors the risk on regular basis and evolves process and system to control and minimize it. With regular check and evaluation business risk can be forecasted to the maximum extent and thus corrective measures can be taken in time.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Human resource has the key role in the growth and development of our organization. The Company aims to develop the potential of every individual associated with the Company as a part of its business goal. Respecting the experienced and mentoring the young talent has been the bedrock for the Companys successful growth. we upskill our workforce to equip them with digital and non-digital skills, which further helps honing their existing set of skills.

We believe that our human capital is our greatest strength and is the driver of growth, efficiency and productivity. Constant efforts are made to create a working environment that encourages initiative, provides challenges and opportunities and recognizes the performance and potential of employees. The Companys performance on the Industrial Relations front continues to be quite satisfactory.