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Nuziveeedu seeds limited sample report
 

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    Nuziveeedu seeds limited sample report Nuziveeedu seeds limited sample report Document Transcript

    • 1© This is a licensed product of Ken Research and should not be copiedziNUZIVEEDU SEEDS LIMITED
    • 2© This is a licensed product of Ken Research and should not be copiedTABLE OF CONTENTS1. Executive Summary2. Business OverviewIntroductionExpertiseProductsAwards2.1. Corporate Timeline2.2. Major Investments in Company Evolution2.3. Organizational Structure2.4. Business Model3. Product Portfolio3.1. Hybrid Cotton Seeds3.2. Field Crop Seeds3.3. Vegetable Seeds4. Nuziveedu Seeds Limited Financial and Valuation Analysis4.1. Valuation Analysis and Financial Summary5. Nuziveedu Seeds Limited Analyst RecommendationsExpected Change in Capital StructurePlanning for Collaborations with State GovernmentsRobust Varieties of Hybrid Paddy and Hybrid Maize of the Company6. Nuziveedu Seeds Limited SWOT AnalysisStrengthsWeaknessesOpportunitiesThreats
    • 3© This is a licensed product of Ken Research and should not be copied7. Nuziveedu Seeds Limited Key Professionals7.1. Management Profile on the Basis of Key Board Members8. Macro Analysis of Seed Industry8.1. Indian Hybrid Seed Industry Market Size, FY’2008-FY’20128.2. Indian Hybrid Seed Industry Segmentations, FY’2012By 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 Seeds9. Nuziveedu Seeds Limited Competitive Analysis9.1. By Products Offered/ Revenue/ Business Strategy10. Nuziveedu Seeds Limited Management Outlook and Future Projections10.1. Future Projections11. Appendix11.1. Market Definitions11.2. Abbreviations11.3. Research MethodologyData Collection MethodsApproachNon-Linear Factor Based Regression Model11.4. Disclaimer
    • 4© This is a licensed product of Ken Research and should not be copiedLIST OF FIGURESFigure 1: Nuziveedu Seeds Limited Corporate Timeline 1973-2013Figure 2: Nuziveedu Seeds Limited Organizational StructureFigure 3: Nuziveedu Seeds Limited Business ModelFigure 4: Nuziveedu Seeds Limited Product PortfolioFigure 5: Nuziveedu Seeds Limited Financial Performance on the Basis of Revenues, EBITDAand PAT 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 Market on the Basis ofContribution in the Overall Revenue in Percentage, FY’2012Figure 10: Market Share of Major Players in Indian Hybrid Corn Seed Market on the Basis ofContribution in the Overall Revenue in Percentage, FY’2012Figure 11: Market Share of Major Players in Indian Pearl Millet Seed Market on the Basis ofContribution in the Overall Revenue in Percentage, FY’2012Figure 12: Market Share of Major Players in Indian Paddy Seed Market on the Basis ofContribution in the Overall Revenue in Percentage, FY’2012Figure 13: Nuziveedu Seeds Limited Financial Performance on the Basis of Revenues, EBITDAMargin and PAT Margin in INR Crore, FY’2008-FY’2012Figure 14: Scatter Chart of Indian Hybrid Seed Industry Market Size with the Company’sRevenue, FY’2008-FY’2012
    • 5© This is a licensed product of Ken Research and should not be copiedLIST OF TABLESTable 1: Nuziveedu Seeds Limited Financial Summary on the Basis of Revenue, Growth ofrevenue and EBITDA Margin in INR Crore and Percentage, FY’2008-FY’2012Table 2: Nuziveedu Seeds Limited Major Investments in Company Evaluation on the Basis DealType, Stake, Deal Value and Implied Enterprise Value in INR CroreTable 3: Nuziveedu Seeds Limited subsidiary companies and their profile descriptionTable 4: Nuziveedu Seeds Limited Revenue Segmentation by Types of Crops Seeds inPercentage, FY’2010-FY’2012Table 5: Nuziveedu Seeds Limited Products Offered in Hybrid Cotton Seeds on the Basis ofBreeding FeaturesTable 6: Nuziveedu Seeds Limited Products Offered on the Basis of Different Field Crop Seeds,Breeding Features and PriceTable 7: Nuziveedu Seeds Limited Products Offered on the Basis of Different Vegetable SeedCrops and Price RangeTable 8: Nuziveedu Seeds Limited Products Offered on the Basis of Different Vegetable SeedCrops and Breeding FeaturesTable 9: Company Comparables on the Basis of Revenue in INR Crore, FY’2008-LTM yearending 31stDecember 2012Table 10: Company Comparable Analysis on the Basis of Market Capitalization, Net Debt andEnterprise Value and Valuation Multiples in INR Crore and Multiples, LTM 31stDecember 2012Table 11: Relative Valuation Analysis on the Basis of Deal Value, Deal Stake and Multiples inINR Crore, Percentage and MultiplesTable 12: Nuziveedu Seeds Limited Operational Overview on the Basis of Board of DirectorsProfileTable 13: Competitive Landscape of Major Players (Nuziveedu Seeds, JK Agri Genetics,Advanta, Monsanto, Kaveri Seeds, Nath Seeds) on the Basis of Services Offered, Revenue andBusiness Strategies, Production PlantsTable 14: Regression Coefficients of the Nuziveedu Seeds LimitedTable 15: Regression Intercepts of the Nuziveedu Seeds Limited
    • 6© This is a licensed product of Ken Research and should not be copiedEXECUTIVE SUMMARYDate: 22ndApril 2013Nuziveedu Seeds Limited is operating under conglomerate of NSL Group. As a whole, NSL Groupcomprises of various businesses covering cotton, power, seeds, infrastructure, sugar and textiles. It is aprivately owned agronomic company in Indian seed market and is headquartered in Hyderabad, AndhraPradesh. The company is one of the premieres in the production of hybrid cotton seed products in theIndian hybrid seed market. The company has a prime focus in research and development, production,processes, marketing and distribution of various hybrid seeds such as cotton seeds, other field crop seedssuch as maize, paddy, sorghum, pearl millet, sunflower and number of vegetable crop seeds.KeyDifferentiators Nuziveedu is amongst the 30 companies of India holding licenses of Bt.cotton technology unlike Mahyco who tied- up with Monsanto IndiaLimited for the same purpose ….Competitionand Positioning Leading position in the Indian hybrid cotton market …KeyDevelopments Had launched two growth drivers of cotton hybrid seed products such asBunny in 1997 and Mallika in 2005 all over the country …FinancialSummaryTable 1: Nuziveedu Seeds Limited Financial Summary on the Basis ofRevenue, Growth of revenue and EBITDA Margin in INR Crore andPercentage, FY’2008-FY’2012Particulars FY’2008 FY’2009 FY’2010 FY’2011 FY’2012RevenueGrowth%EBITDA Margin%
    • 7© This is a licensed product of Ken Research and should not be copiedCORPORATE TIMELINEIn 1973, Sri M Venkatramaiah established Nuziveedu Seeds Limited and named it after hisancestral village Nuziveedu in Andhra Pradesh to overcome the domination of governmentsector companies in the seed industry. In 1985, the company came up with its first productspecific advertisement for promoting its product such as NCS-1. In 2000 the company enteredinto hybrid seed other cotton by releasing hybrid sorghum. In 2001, with a huge sale of Bunnyand Mallika the company crossed the turnover of INR 100 crore.In 2004, company introduced a new segment of vegetable seeds to amplify its product portfolio.In 2005, company entered the hybrid cotton seed market by launching Bt. Mallika which was anewer version of cotton as it combined the bio technology to develop hybrids with desirablequalities….MAJOR INVESTMENTS IN COMPANY EVOLUTIONIn 2011, the company acquired a strong player of cotton hybrid seeds named as Prabhat AgriBiotech Limited so as to absorb its competitor…In August 2010, by the means of convertible instruments Blackstone GPV Capital PartnersMauritius V-C Limited invested INR ~ crore in the company…In January 2009, the company acquired Yaaganti Seeds Private Limited and Pravardhan SeedsPrivate Limited which are primarily focusing on maize, sunflower and bajra seeds amongothers…In December 2008, Blackstone invested INR ~ crore in the company so as to increase company’sexpansion horizons through mergers and acquisitions.
    • 8© This is a licensed product of Ken Research and should not be copiedTable 2: Nuziveedu Seeds Limited Major Investments in Company Evaluation on the BasisDeal Type, Stake, Deal Value and Implied Enterprise Value in INR CroreAnnouncedDateTarget Deal Type Acquirer Stake%DealValue(INRCrore)ImpliedEV (INRCrore)LTMTargetRevenue(INRCrore)Prabhat AgriBiotech LimitedDomesticAcquisitionNuziveeduSeeds LimitedNuziveedu SeedsLimitedInboundAcquisitionBlackstoneGPV CapitalPartnersMauritius V-CLimitedYaaganti SeedsPrivate Limitedand PravardhanSeeds PrivateLimitedDomesticAcquisitionNuziveeduSeeds LimitedNuziveedu SeedsLimitedInboundAcquisitionBlackstoneGPV CapitalPartnersMauritius V-CLimitedNote: LTM stands for last twelve month from the date of acquisition
    • 9© This is a licensed product of Ken Research and should not be copiedORGANIZATIONAL STRUCTUREThe company has several seeds processing plants and production facilities plants situated all overthe country covering ~ square feet of land. Currently the total processing capacity of thecompany is ~ TPH, out of which the highest capacity of processing plant with ~ TPH is locatedat Kothur, Andhra Pradesh…Figure: Nuziveedu Seeds Limited Organizational StructurePRODUCT PORTFOLIOThe company has a product portfolio of approximately ~ hybrid seed products in various cropspecies offering wide range of hybrid cotton, field crops, oilseeds and vegetable crops seeds…Having cotton hybrid seeds as its mainstay, the company is also focusing on corn, rice andvegetable seed products for providing more qualitative products to farmers…
    • 10© This is a licensed product of Ken Research and should not be copiedThe company has multi-location trial centers set across the country in different agro- climaticzones to check the products adaptability with reference to biotic and abiotic stress tolerances andother desirable characters…The company’s quality check process includes two major assessment tests which are seed testinglaboratory and grow out test. Grow out test (GOT) is carried out with well-qualified productionstaffs for verifying the genetic purity of the product…Table: Nuziveedu Seeds Limited Revenue Segmentation by Types of Crops Seeds inPercentage, FY’2010-FY’2012Business Segment FY’2010 FY’2011 FY’2012Hybrid CottonField crops other than cottonVegetable crops seedsTotalNUZIVEEDU SEEDS LIMITED FINANCIAL ANDVALUATION ANALYSISVALUATION ANALYSIS AND FINANCIAL SUMMERYThe revenue of the company has shown a CAGR growth of ~ and EBITDA of the company hasshown a CAGR growth of ~ from FY’2008-FY’2012…In FY’2012 the growth in revenue was marked with 46.7% y-o-y with revenue of INR 1,070.0crore largely because the company has amplified its plant capacity approximately double asagainst its previous production in hybrid corn seeds. Moreover…..Average annual growth in EBITDA of the company from FY’2010 to FY’2012 has grown at arate of ~ with a ~ growth in EBITDA in FY’2012 which represents the improvement incompany’s operational efficiency…
    • 11© This is a licensed product of Ken Research and should not be copiedOn the basis of precedent transactions, Nuziveedu Seeds has been valued at INR 2161.3 crorewith a revenue multiple of 2.0x. For the calculation of revenue multiple we have considered thedeals that have happened since 2007-2013 in the Indian seed and agriculture industry.Figure: Nuziveedu Seeds Limited Financial Performance on the Basis of Revenues,EBITDA and PAT in INR Crore, FY’2008-FY’2012Table: Company Comparables on the Basis of Revenue in INR Crore, FY’2008-LTM yearending 31stDecember 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 Limited0.0200.0400.0600.0800.01,000.01,200.02008 2009 2010 2011 2012INRCroreRevenue EBITDA PAT
    • 12© This is a licensed product of Ken Research and should not be copiedTable: Company Comparable Analysis on the Basis of Market Capitalization, Net Debtand Enterprise 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/EKaveri SeedsCompany LimitedJK Agri GeneticsLtdAdvanta IndiaNath Seeds LimitedMonsanto India LtdMeanMedianTable: Relative Valuation Analysis on the Basis of Deal Value, Deal Stake and Multiples inINR Crore, Percentage and MultiplesDate Target Company Deal Type DealValueINR (Cr)Stake%ImpliedEV/RevenueImpliedEV/EBITDAImpliedEV/PAT14-Mar-13 Bisco Bio SciencesPrivate LimitedInboundAcquisition21-Feb-13 R J Biotech Limited IPO24-Nov-12 Century SeedsPrivate LimitedInboundAcquisition26-Jul-12 Advanta IndiaLimitedInboundAcquisition21-May-12 Bisco Bio SciencesPrivate LimitedInboundAcquisition14-May-12 NaanDanJainIrrigation LimitedDomesticAcquisition
    • 13© This is a licensed product of Ken Research and should not be copied24-Apr-12 Zero Waste AgroOrganics PrivateLimitedDomesticAcquisitionMeanMedianMACRO 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
    • 14© This is a licensed product of Ken Research and should not be copiedNUZIVEEDU SEEDS LIMITED COMPETITIVE ANALYSISBY PRODUCTS OFFERED/ REVENUE/ BUSINESS STRATEGYTable: Competitive Landscape of Major Players (Nuziveedu Seeds, JK Agri Genetics,Advanta, Monsanto, Kaveri Seeds, Nath Seeds) on the Basis of Services Offered, Revenueand Business Strategies, Production PlantsCompanies Services Offered Key Financials BusinessStrategiesNumber ofProductionPlants andtheir LocationIncorporationDateJK AgriGeneticsKaveriSeeds
    • 15© This is a licensed product of Ken Research and should not be copiedNath SeedsNUZIVEEDU SEEDS LIMITED MANAGEMENTOUTLOOK AND FUTURE PROJECTIONSThe company is planning to increase its geographical reach by entering into the different hybridseed market of the nations such as northern and eastern region of the country. The companyalready has a competitive positioning in the hybrid seed market in the southern region of thenation…FUTURE PROJECTIONSThe company has intensive research and development units which are engaged in research anddevelopment of approximately 75 hybrid seeds verities in 160 locations in different parts of theglobe. With the acquisition of Prabhat Agri Biotech Limited the company takes the advantage ofresearch…The company is planning to expand its operation in different continents of the globe so as toincrease its brand name across the global in the hybrid seed industry. The company is planning toacquire new production sites in different continents such as SAARC, Sub African countries,Europe and Middle East…Nuziveedu has a prime focus on the production of hybrid seeds products. The company has afuture plan to shift its production from the varietal seeds to the production of hybrid seedsproductsThe company is expected to showcase a revenue growth at a CAGR of ~% from FY’2012-FY’2017. Nuziveedu is enhancing the production of its hybrid paddy seed such as (HP) Winner –NPH 567…EBITDA of the company is expected to grow at a CAGR of ~ % from FY’2012-FY’2017 due toincrease in the revenue of the company…
    • 16© This is a licensed product of Ken Research and should not be copiedNuziveedu Seeds Limited Financial Performance on the basis of Revenues, EBITDAMargin and PAT Margin in INR Crore, FY’2008-FY’20120.0%5.0%10.0%15.0%20.0%25.0%30.0%0.0500.01,000.01,500.02,000.02,500.03,000.0FY2013 FY2014 FY2015 FY2016 FY2017InPercentageInINRCroreRevenue EBITDA Margin PAT 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.