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Maharashtra Hybrid Seeds Company Limited Expanding Indian Agriculture to Different Nations
 

Maharashtra Hybrid Seeds Company Limited Expanding Indian Agriculture to Different Nations

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The company is expected to expand its revenue at a CAGR of 25.0% from FY’2012 to FY’2017. The company is planning to increase its product portfolio by increasing its expenditure on research and ...

The company is expected to expand its revenue at a CAGR of 25.0% from FY’2012 to FY’2017. The company is planning to increase its product portfolio by increasing its expenditure on research and development. It is expected that the company will increase its expenditure on research and development to INR 100 crore per year in the next four years. These researches will bring new and innovative products and will improve the existing product portfolio of the company. This will lead to production of more cost efficient and qualitative products and will increase the revenues and operating margin of the company. Additionally, the company is planning to introduce genetically modified (GM) seeds in food items in Bangladesh and Philippines. Introduction of GM seeds will increase the company’s revenues from the international seed market.

The report focuses on providing analysis on the company’s valuation in the industry and also provides for a detailed analysis of the company’s enterprise value and it’s positioning against its competitors.

For more information on the industry research report please refer to the below mentioned link:

http://www.kenresearch.com/detail-company-report/13/maharashtra-hybrid-seeds-company.html

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    Maharashtra Hybrid Seeds Company Limited Expanding Indian Agriculture to Different Nations Maharashtra Hybrid Seeds Company Limited Expanding Indian Agriculture to Different Nations Document Transcript

    • 1© This is a licensed product of Ken Research and should not be copiedMAHARASHTRA HYBRID SEEDS COMPANY LIMITED
    • 2© This is a licensed product of Ken Research and should not be copiedTABLE OF CONTENTS1. Executive Summary: Maharashtra Hybrid Seeds Company Limited2. Maharashtra Hybrid Seeds Company Limited Business Overview2.1. Corporate Timeline2.2. Major Investments in the Company Evolution2.3. Maharashtra Hybrid Seeds Company Limited Organisational Structure2.4. Business Model of Maharashtra Hybrid Seeds Company Limited3. Maharashtra Hybrid Seeds Company Limited Product Portfolio3.1. Hybrid Cotton3.2. Field Crop Seeds3.3. Oil Seeds3.4. Vegetable Crop Seeds4. Maharashtra Hybrid Seeds Company Limited Financial and Valuation Analysis4.1. Valuation Analysis and Financial Summery5. Maharashtra Hybrid Seeds Company Limited Analyst Recommendations6. Maharashtra Hybrid Seeds Company Limited SWOT Analysis7. Maharashtra Hybrid Seeds Company Limited Key Professionals7.1. Management Profile8. Macro Analysis of Seed Industry8.1. Indian Hybrid Seed Industry Market Size, FY’2008-FY’20128.2. Indian Hybrid Seed Industry Segmentations, FY’20128.2.1. By Type of Crops8.3. Market Share of Major Players in the Indian Hybrid Seed Industry, FY’20128.3.1. By Hybrid Cotton8.3.2. By Hybrid Field Crop Seed8.3.3. By Hybrid Vegetable Crop Seed
    • 3© This is a licensed product of Ken Research and should not be copied9. Maharashtra Hybrid Seeds Company Limited Competitive Analysis9.1. By Products Offered/ Revenue/ Business Strategy10. Maharashtra Hybrid Seeds Company Limited Management Outlook and FutureProjections10.1. Maharashtra Hybrid Seeds Company Limited Future Projection11. Appendix11.1. Market Definitions11.2. Abbreviations11.3. Research Methodology11.4. Disclaimer
    • 4© This is a licensed product of Ken Research and should not be copiedLIST OF FIGURESFigure 1: Maharashtra Hybrid Seeds Company Limited Corporate Timeline 1964-2013Figure 2: Maharashtra Hybrid Seeds Company Limited Organizational StructureFigure 3: Maharashtra Hybrid Seeds Company Limited Business ModelFigure 4: Maharashtra Hybrid Seeds Company Limited Product PortfolioFigure 5: Maharashtra Hybrid Seeds Company Limited Financial Performance on the basis ofRevenues and EBIT in INR Crore, FY’2008-FY’2012Figure 6: India Hybrid Seed Industry Market Size and Contribution in the Overall Indian SeedMarket on the Basis of Revenue in INR Crore and percentage, FY’2008-FY’2012Figure 7: India Hybrid Seed Industry Segmentation on the Basis of Contribution in the OverallHybrid Seed Industry in Percentage, FY’2012Figure 8: Market Share of Major Players in Indian Hybrid Seed Market on the Basis ofContribution by Revenue in Percentage, FY’2012Figure 9: Market Share of Major Players in Indian Hybrid Cotton Seed Segment on the Basis ofContribution by Revenue in Percentage, FY’2012Figure 10: Market Share of Major Players in Indian Hybrid Corn Seed Segment on the Basis ofContribution by Revenue in Percentage, FY’2012Figure 11: Market Share of Major Players in Indian Pearl Millet Seed Segment on the Basis ofContribution by Revenue in Percentage, FY’2012Figure 12: Market Share of Major Players in Indian Paddy Seed Segment on the Basis ofContribution by Revenue in Percentage, FY’2012Figure 13: Market Share of Major Players in Indian Vegetable Seed Segment on the Basis ofContribution by Revenue in Percentage, FY’2012Figure 14: Maharashtra Hybrid Seeds Company Limited Future Projections on the Basis ofRevenues and EBIT in INR Crore and Percentage, FY’2013-FY’2017Figure 15: Non-linear Regression Analysis and Scatter Chart Based upon Indian Hybrid SeedIndustry Market size, FY’2008-FY’2012
    • 5© This is a licensed product of Ken Research and should not be copiedLIST OF TABLESTable 1: Maharashtra Hybrid Seeds Company Limited Financial Summary on the Basis ofRevenue, Growth and EBIT Margin in INR Crore and Percentage, FY’2008-FY’2012Table 2: Maharashtra Hybrid Seeds Company Limited Major Investments in CompanyEvaluation on the Basis Deal Type, Stake, Deal Value and Implied Enterprise Value in INRCroreTable 3: Maharashtra Hybrid Seeds Company Limited Products Offered in Hybrid Cotton Seedson the Basis of Different Zones in IndiaTable 4: Maharashtra Hybrid Seeds Company Limited Products Offered on the basis of DifferentField Crop SeedsTable 5: Maharashtra Hybrid Seeds Company Limited Products Offered on the Basis ofDifferent Oil SeedsTable 6: Maharashtra Hybrid Seeds Company Limited Products Offered on the Basis ofVegetable Crop SeedsTable 7: Company Comparables on the Basis of Revenue in INR Crore, FY’2008-LTM yearending 31stDecember 2012Table 8: Company Comparable Analysis on the Basis of Market Capitalization, Net Debt andEnterprise Value and Valuation Multiples in INR Crore and Multiples, LTM 31stDecember 2012Table 9: Relative Valuation Analysis on the Basis of Deal Value, Deal Stake and Multiples inINR Crore, Percentage and MultiplesTable 10: Maharashtra Hybrid Seeds Company Limited Board of DirectorsTable 11: Company Comparables on the basis of Services Offered, Revenue and BusinessStrategiesTable 12: Regression Coefficients of the Maharashtra Hybrid Seeds Company LimitedTable 13: Regression Intercepts of the Maharashtra Hybrid Seeds Company Limited
    • 6© This is a licensed product of Ken Research and should not be copiedEXECUTIVE SUMMARY: MAHARASHTRA HYBRIDSEEDS COMPANY LIMITEDMaharashtra Hybrid Seeds Company Limited also known as Mahyco, is a privately ownedcompany and is headquartered in Jalna, Maharashtra. Mahyco is among the largest hybrid seedproducers in India. The company is involved in the research and development, production,marketing and distribution of various hybrid seeds such as cotton seeds, field crops, vegetablecrops and oil seeds. The company has a prime focus in the generation and distribution of hybridcotton seeds in the Indian hybrid seed market.KeyDifferentiators More than 1,000,000 cultivators are involved in seed productionCompetitionand Positioning Leading position in the Indian hybrid cotton marketKeyDevelopments World’s foremost company to commercialize F1 hybrid cotton basedon GMS/CMS systemFinancialSummaryMaharashtra Hybrid Seeds Company Limited Financial Summary onthe Basis of Revenue, Growth and EBIT Margin in INR Crore andPercentage, FY’2008-FY’2012Particulars FY’2008E FY’2009 FY’2010 FY’2011 FY’2012RevenueGrowth%EBIT Profit%
    • 7© This is a licensed product of Ken Research and should not be copiedCORPORATE TIMELINEOn 11thNovember 1964, the company started its operation with the prime focus towards geneticresearch of plant and production of different varieties of seeds.In 1966, the company started its first research and development center in India with an objectiveof develop new products and increase its penetration in the Indian seed market.In 2013, Performance Plant Inc. and Maharashtra Hybrid Seeds Company Limited have enteredinto a license agreement…Maharashtra Hybrid Seeds Company Limited Corporate Timeline 1964-2013MAHARASHTRA HYBRID SEEDS COMPANY LIMITEDORGANISATIONAL STRUCTUREThe company has 9 processing centers across the nation situated at Maharashtra, Karnataka,Andhra Pradesh, Gujarat, Madhya Pradesh, Rajasthan, Punjab, Haryana and Uttar Pradesh withannual seed processing capacity of over ~ quintal in these 9 centers…
    • 8© This is a licensed product of Ken Research and should not be copiedMaharashtra Hybrid Seeds Company Limited Organizational StructureBUSINESS MODEL OF MAHARASHTRA HYBRID SEEDS COMPANYLIMITEDBusiness cycle of the company starts with the procurement of input supplies for research anddevelopment departments. Input supplies are the principal driver for the production of new andimproved hybrid seed products…After harvesting of seeds, the company transfers these seeds to processing centers for furtherprocessing and quality testing…
    • 9© 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 differentdistributors across the nation…Maharashtra Hybrid Seeds Company Limited Business ModelMAHARASHTRA HYBRID SEEDS COMPANY LIMITEDPRODUCT PORTFOLIOThe company has a product portfolio of more than ~ hybrid products in ~ different crop speciesoffering hybrid cotton, field crops, oilseeds and vegetables crops. The company offered ~ typesof hybrid cotton, ~ types of field crops, ~ types of oil seeds and different types of vegetable seedsverities.
    • 10© This is a licensed product of Ken Research and should not be copiedThe company is continuously focusing on the research and developments of new products suchas genetically modified (GM) rice, wheat, cauliflower, pigeon pea and okra…Under the guidance of Department of Biotechnology, Government of India the company hasbeen involved in different projects for the development of new products and new technologiesand also the company has entered into various partnerships with other institutions…Maharashtra Hybrid Seeds Company Limited Product Portfolio
    • 11© This is a licensed product of Ken Research and should not be copiedMAHARASHTRA HYBRID SEEDS COMPANY LIMITEDFINANCIAL AND VALUATION ANALYSISVALUATION ANALYSIS AND FINANCIAL SUMMERYRevenue of the company has shown a CAGR growth of ~ % from FY’2008-FY’2012. Thecompany has witnessed this growth due to constant development of new products and byimprovements in its current product portfolio. Mahyco has spent INR ~ core in FY’2011 onresearch and development as compare to INR ~ crore in FY’2010 which showcase thecompany’s interest to enhance the quality of its products…In FY’2011 and FY’2012 the company has shown a marginal growth of ~% and ~% respectivelyin revenues mainly due to increased competition in the hybrid cotton market…As on 31stDecember 2012, Mahyco has been valued at INR ~ crore on company comparablesbasis. The company has been valued at average revenue multiple of ~x of different publicallylisted seed companies in India…Maharashtra Hybrid Seeds Company Limited Financial Performance on the basis ofRevenues and EBIT in INR Crore, FY’2008-FY’20120.0100.0200.0300.0400.0500.0600.0700.0FY2008 FY2009 FY2010E FY2011 FY2012Revenues EBIT
    • 12© This is a licensed product of Ken Research and should not be copiedCompany Comparables on the Basis of Revenue in INR Crore, FY’2008-LTM year ending31stDecember 2012Revenue (in INR Crore) FY’2008 FY’2009 FY’2010 FY’2011 FY’2012 LTMJK Agri Genetics Ltd.*Advanta India Limited**Monsanto India Ltd.Kaveri Seeds Company LimitedNath Seeds India LimitedCompany Comparable Analysis on the Basis of Market Capitalization, Net Debt andEnterprise Value and Valuation Multiples in INR Crore and Multiples, LTM 31stDecember 2012(INR Crore, unless Stated) Last Twelve Months (LTM) Year EndingDecember 2012Company MarketCapNetDebtEnterpriseValue (EV)EV/Revenue EV/EBITDA P/EJK Agri GeneticsLtd.Advanta IndiaLimitedMonsanto India Ltd.Nath Seeds IndiaLimitedKaveri SeedsCompany LimitedMeanMedian
    • 13© 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 INRCrore, Percentage and MultiplesDate Target Company Deal Type DealValueINR (Cr)Stake%ImpliedEV/RevenueImpliedEV/EBITDAImpliedEV/ PAT21-Feb-13 R J BiotechLimitedIPO24-Nov-12 Century SeedsPrivate LimitedInboundAcquisition26-Jul-12 Advanta IndiaLimitedInboundAcquisition21-May-12 Bisco BioSciences PrivateLimitedInboundAcquisition14-May-12 NaanDanJainIrrigation LimitedDomesticAcquisition24-Apr-12 Zero Waste AgroOrganics PrivateLimitedDomesticAcquisition2-Apr-12 Super Agri SeedsPrivate LimitedPrivate EquityFund Raise5-Mar-12 GoldN ChicksLimitedInboundAcquisition9-Dec-10 Metahellix LifeSciencesDomesticAcquisition7-Jan-08 Unicorn SeedsLimitedBlock Trade22-Dec-07 Syngenta IndiaLimitedInboundAcquisition1-Jun-07 Golden SeedsPrivate LimitedBlock TradeMeanMedian
    • 14© This is a licensed product of Ken Research and should not be copiedMACRO ANALYSIS OF SEED INDUSTRYMARKET SHARE OF MAJOR PLAYERS IN THE INDIAN HYBRIDSEED INDUSTRY, FY’2012The Indian hybrid seed industry is dominated by Nuziveedu Seeds Private Limited. Thecompany has a market share of ~ % in the overall Indian hybrid seed industry followed byMahyco and Monsanto India limited which have a share of ~% and ~% respectively…For Monsanto India, corn hybrid seed was the single biggest focus in seed business. Through itsProject Golden Rays project the company has signed a public-private partnership with Rajasthanstate government for increasing the maize hybrid yields by two folds…Market Share of Major Players in Indian Hybrid Seed Market on the Basis of Contributionby Revenue in Percentage, FY’2012Nuziveedu Seeds Private limitedMaharashtra Hybrid Corporation(Mahyco)Monsanto India Limited (MIL)Rasi Seeds Private LimitedBayer Crop Science limited - IndiaPioneer SeedsSyngenta India Ltd.Others
    • 15© This is a licensed product of Ken Research and should not be copiedMAHARASHTRA HYBRID SEEDS COMPANY LIMITEDMANAGEMENT OUTLOOK AND FUTURE PROJECTIONSThe company is planning to increase its focus on product portfolio of the company by increasingits expenditure on research and development. It is expected that the company will increase inresearch and development expenditure from INR 55.0 crore to INR 100.0 crore per year in thenext four years. These expenditures will have a direct impact on the company’s revenues bybringing new and innovative products. Additionally, these research and developmentexpenditures will also improve the quality of current product portfolio of the company whichwill lead to more cost efficient production process for the company. Due to this revenue of thecompany is expected to cross INR 2,000.0 crore till FY’2017 as improvement in products of thecompany through research and development will generate positive cash flows in the future andwill lead to amplification of company’s revenues. It is expected that with the increase inrevenues, operating margin of the company would also showcase an increasing trend.Additionally, Mahyco is planning to expand its operations in different nation specially neighborcountries of India by bringing new and innovative products so as to increase its penetration in theinternational seed market.MAHARASHTRA HYBRID SEEDS COMPANY LIMITED FUTUREPROJECTIONMaharashtra Hybrid Seeds Company Limited is expected to cover hybrid paddy seed market indifferent countries such as ~ and ~. In FY’2012 the company has already started its commercialproduction in these nations and expected to increase the commercial production of these productsin future as well. This will increase the market penetration of the company in the internationalseed market and will amplify the company’s revenues.Additionally, the company is expected to diverse its focus towards the production of hybrid riceseeds in the Indian seed market. As of now hybrid rice is contributing only ~% of the company’soverall revenues…
    • 16© This is a licensed product of Ken Research and should not be copiedMaharashtra 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 company’srevenues from the international seed market…The company is expected to showcase a revenue growth at a CAGR of ~% from FY’2012-FY’2017. Mahyco is focusing on the development of Bollgard-II roundup ready flex cotton (BG-II RRF)…EBIT margin of the company is expected to be little under pressure as the company is expectedto spend substantial amount in research and developments. EBIT of the company is expected togrow at a CAGR of ~% from FY’2012-FY’2017…Maharashtra Hybrid Seeds Company Limited Future Projections on the Basis of Revenuesand EBIT in INR Crore and Percentage, FY’2013-FY’201719.0%20.0%21.0%22.0%23.0%24.0%25.0%26.0%0.0500.01,000.01,500.02,000.02,500.0FY2013 FY2014 FY2015 FY2016 FY2017inPercentageINRCroreRevenue EBIT Margin
    • 17© This is a licensed product of Ken Research and should not be copiedDISCLAIMERThe research reports provided by Ken Research are for the personal information of theauthorized recipient and is not for public distribution and should not be reproduced orredistributed without prior permission. You are permitted to print or download extracts from thismaterial for your personal use only. None of this material may be used for any commercial orpublic use.The information provided in the research documents is from publicly available data and othersources, which are reliable. Efforts are made to try and ensure accuracy of data. With respect todocuments available, neither the company nor any of its employees makes any warranty, expressor implied, including the warranties of merchantability and fitness for a particular purpose, orassumes any legal liability or responsibility for the accuracy, completeness, or usefulness of anyinformation, apparatus, product, or process disclosed, or represents that its use will not infringeprivately owned rights.The report also includes analysis and views expressed by our research team. The research reportsare purely for information purposes. The opinions expressed are our current opinions as of thedate appearing in the material and may be subject to change from time to time without notice.Investors should not solely rely on the information contained in the research documents and mustmake investment decisions based on their own investment objectives, risk profile and financialposition. The recipients of this material should take their own professional advice before actingon this information.Ken Research will not accept returns of reports once dispatched due to the confidentiality ofinformation provided in our reports. In case, a report qualify for return, we will issue a credit,minus shipping charges, of equal value to the original purchase price, toward a future purchase—no refunds. The decision about whether the product return can be accepted or not is solely at ourdiscretion. Any dispute will be subject to laws of India and exclusive jurisdiction of IndianCourts.No part of this manual or any material appearing may be reproduced, stored in or transmittedon any other Web site without written permission of Ken Research and any payments of aspecified fee. Requests to republish any material may be sent to us.