Agriculture ministry set to control cotton seed prices....

Following news is relevant and important to the share holders of seed companies ,hence re-posting it here .

HYDERABAD: In what could prove a major setback to the global hybrid seed giant Monsanto, India's agriculture ministry has decided to control the prices of cotton seed, including the genetically modified versions and their trait value.

The Ministry of Agriculture, Cooperation and Farmers Welfare on 7 December has firmed up the Cotton Seeds Price (Control) Order 2015, terming it as aimed at ensuring availability of cotton seeds to farmers at "fair, reasonable and affordable prices".

The move of the ministry comes in response to a series of representations made by the domestic hybrid seed manufacturers, who sought the government's intervention to rein in the American seed giant Monsanto on trait value of Bt cotton seed. A Mahyco Monsanto Biotech (India) spokesperson said the company just received a copy of the order and was in the process of reviewing. "We will be in a position to comment only after we understand the order in its entirety," said the spokesperson.  ..

"As a leading player in India's agriculture sector, Monsanto remains confident that the government will take into account views of all stakeholders and will continue to encourage innovation in Indian agriculture." The local seed makers moved the agriculture ministry after the American hybrid seed giant Mahyco Monsanto Biotech (MMB) refused to bring down the royalty payments and return the excess royalties they paid from 2010.

The Indian hybrid seed producers appealed to Monsanto to reduce trait values weeks after certain state government began fixing caps both on royalty amounts the seed makers pay to obtain seed technologies and on selling prices of hybrid cotton seed to farmers. 

This decision may negatively impact the business prospects of previously suggested companies - Kaveri Seed Company  and  Nath Biogene - from this sector.

HYDERABAD: In what could prove a major setback to the global hybrid seed giant Monsanto, India's agriculture ministry has decided to control the prices of cotton seed, including the genetically modified versions and their trait value.

The Ministry of Agriculture, Cooperation and Farmers Welfare on 7 December has firmed up the Cotton Seeds Price (Control) Order 2015, terming it as aimed at ensuring availability of cotton seeds to farmers at "fair, reasonable and affordable prices".

Read more at:
http://economictimes.indiatimes.com/articleshow/50145857.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

HYDERABAD: In what could prove a major setback to the global hybrid seed giant Monsanto, India's agriculture ministry has decided to control the prices of cotton seed, including the genetically modified versions and their trait value.

The Ministry of Agriculture, Cooperation and Farmers Welfare on 7 December has firmed up the Cotton Seeds Price (Control) Order 2015, terming it as aimed at ensuring availability of cotton seeds to farmers at "fair, reasonable and affordable prices".

Read more at:
http://economictimes.indiatimes.com/articleshow/50145857.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

KAVERI SEED COMPANY - LATEST INTERVIEW WITH ITS MD

 
For old posting about this company click HERE

              OVER VIEW OF KAVERI EXOTIC VEGETABLES' PILOT PROJECT

Sri Gundavaram V. Bhaskar Rao, Chairman and the Managing Director, Kaveri Seed Company Ltd., Andhra Pradesh is a technocrat with business acumen.  Agricultural family background and nurtured interest in farming destined him to become a graduate in Agriculture from College of Agriculture of the Andhra Pradesh Agricultural University now ANGRAU, Hyderabad in the year 1974.
As a seed entrepreneur, Sri Rao was instrumental to startup seed production programme of public bred hybrids & varieties of corn, bajra, sunflower and paddy in family owned farmland. In a couple of years time, established a seed processing plant to augment quality seed production with brand name of a proprietary concern- G.V.B Rao & Company. It soon became a partnership concern with MNCs producing contract quality seed. In a step wise accretion, the company grew over the years under his stewardship and registered as Kaveri Seed Company Pvt. Ltd. in 1986.The  growth in seed business  of Kaveri expanded the scope of the Company not only to produce and market seeds but also other agri-products – micronutrients, plant growth regulators biofertilizers and biopesticides. Both seed and agri-products of Kaveri brand carved a niche in the Indian market. Within two decades, Kaveri Seed Company scaled new heights in seed and agribusiness and became a listed Company in the year 2007.  The company’s image received a big boost by figuring in “Forbes Asia Best Under A Billion – The region’s Top 200 Small & Midsize Companies. It did hatrick by re-enlisting successively by Forbes   in 2011 and 2012 too .The leadership in Sri Rao won recognition by the fellow seeds men of A.P and he was elected as President of AP. Seedsmen Association for two consecutive terms
 Q1)      What are your company’s future plans?
 Kaveri Seed Company is committed to march ahead in its core seed and agri- product business. The company has plans to consolidate recently established lead in cotton, pearl millet and maize and carve a niche in vegetable seed and export market .It also intends to scale up their position in rice and sunflower Hybrid rice with huge market potential is the next major attraction for the Company’s business. The company’s thrust  is on “Development of Biotic resistant Rice through conjunct use of Bio and Hybrid technologies”  and “Marker-assisted dissection of genetic basis of yield and improving yield potential under drought stress in Maize”.  The Company is laying emphasis on high value olericulture by way of protective cultivation of premium vegetables and culinary herbs.  KEXVEG (Kaveri Exotic Vegetables) is our initiative in this direction.
 Q2)       What are your new products?
 The company reins enviably in its product portfolio – both in number and performance. The Company’s premier BT cotton hybrids – Jaadoo, Jackpot, ATM, singha & Barood  bajra hybrids -Super Boss & Fouzi  are  now  in the forefront of seed market and in the farmer’s fields. Sampada (red gram) Sampoorna, Super Sona & KPH 9090 (paddy) have created niche markets. Based on National Evaluation process, the ICAR has identified Company’s maize hybrids -KMH 25K60, KMH 3712 KMH 218+  and KMH 3426  Four paddy hybrids excelled in National trials In a similar vein, X 563 (Bajra) and KSH 950 (Jowar) are the hybrids of promise and likely to hit the market soon. In Sunflower the hybrids Sunkranti,  and Champ are in the demand in rain fed and irrigated areas.  Success has also been achieved in vegetable breeding; Significant progress has been made in breeding  for yellow vein mosaic virus (YVMV) resistant okra hybrids.
Q3)      How has this season been for your company?
Since KSCL is committed to quality at different stages of production, testing and processing, the demand for its products is on the rise, so the company has done well in spite of delayed monsoon.  This vouches for the genetic buffering capacity (Homeostasis )of its products to weather aberrations.
Q4)      Do you recommend any policy changes from the government?
Seed industry should be given the status of preferred industry by the Government. Policy support from the Govt. by way of encouragement to investment in research and infrastructure; minimal regulation and compliance; freedom to operate based on free market principles
 Q5)   Is power crisis impacting the seed industry?
Yes; since agriculture cannot wait, seed should be available to the farmers at the right time, in required quantity and desired quality to meet the food demand of the people.  The irregular supply and power cuts  derail all the operations of the seed industry including production leading to seed scarcity and eventually to food crises.
Q6)      It is said that India will become future hub for seed production of the       world. Your comments on that?
Availability of arable land, varied agro climate, congenial environment for seed production of diverse crops, trained manpower, skilled labour backed by a vibrant seed industry fifth largest in the world, certainly India has the imminent potential to become a global seed hub
Q7) What do you see the potential for paddy seed and maize seed in Indian seed   industry?
 Rice and maize are two important food basket crops along with wheat and their stagnant production and productivity makes the country food insecure. . The decline in yield gain for these crops is of great concern. Nevertheless, the R&D capabilities of seed Industry, as well pro business policy environment to support their growth, will significantly contribute to productivity gains in these two major crops. After Bt cotton, next growth driver of hope for industry is hybrid rice.
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 Courtesy : Gubba Cold Storage Ltd


Disc : I have vested interest in KSCL

KAVERI SEED COMPANY - UPDATE

KAVERI SEED COMPANY recommended @ Rs.272 /- on July 5,2010 today  hits its life time high @ Rs.1300/- .Investors with some risk appetite can still hold the stock for long term.

For old posting ,Click HERE

Disc:I have vested interest in KSCL

HIKAL LTD / KAVERI SEED COMPANY LTD - UPDATES

 HIKAL LTD
 
I have recommended a BUY on Hikal Ltd  @ Rs.269/- on March 18,2012.( For old Posting Click HERE) .Today stock hits  its 52 week  high of Rs.438 before closing @ Rs.427 ,an appreciation of about 60 % in 6 months . Those with some risk appetite may still hold it for further gain in long term.


KAVERI SEED COMPANY 
This stock repeatedly recommended from a level of Rs.272/- onwards . Today KSCL hits four digit figure and closed @ Rs.1003 /- ( For old Posting Click HERE) . In today's AGM company approved the payment of dividend @ 40 % per share.

Requesting all my readers to stick with quality companies irrespective of  market moods. Concentrate in company specific growth prospects rather than macro environments and control the temptations to over trade in momentum markets using leverage/margin funding -  for creating  wealth in  long term.

KAVERI SEED COMPANY - RESULT UPDATES

 KAVERI SEED COMPANY


Recommended @ Rs.272  and currently trading @ Rs.803 /- posted an increase of 114 % in net profit for the June quarter (Rs.101 Cr ) . Company's sales also  jumped 100% to Rs.480 Cr .June quarter EPS is Rs.74

For old posting ,Click HERE

KAVERI SEED COMPANY - BUY

I know , this company need no introduction to my regular readers .We are discussing about it from a level of Rs.272/- and now it is trading around Rs.470/- near to its all time high of Rs.494/-. Why it is again after a rise of about 70% ?. It is not only because of the robust result in first quarter  but due to some additional reasons too.Kaveri Seed Company  posted a turnover of Rs.Rs.241 Cr  v/s Rs.148 Cr , net profit of Rs.47 Cr   v/s Rs.31 Cr and an EPS of Rs.34.5 v/s Rs.23 in the latest June quarter compared with the same period last year.The latest news is that- the first phase of company's mega Olericulture project is nearing completion.This 100 Cr project is set up with  the technical collaboration of world leader in green house technology - Netaphim of Israel - on a turn key basis and the production from this facility is only meant for exports.This is the only listed company taking some serious steps in this field at a time of mounting food inflation pressure worldwide.In addition to this , now company is exploring opportunities in Ethiopia, Tanzania and Uganda for olericulture projects where land is available at cheap rate.Company's R&D is recently expanded and it is working on developing new variety of seeds.Indian Council for Agriculture Research recently accepted company's new variety seed KMH-3712 for using in various northern states which will help the company to ensure a pan India presence .Other new varieties KPH - 216,KPH -199 ,KPH - 272 and KPH -37 are entered to the next stage of evaluation by ICAR. These paddy varieties are expected to clear the final stage and hit the market soon.Company's R & D efforts are now more vibrant than ever and it is very important for an industry like this.There is lot of controversy about the use of BT seeds.But it is a fact , to tackle the serious situation in food production some compromises are necessary.Any decision to permit BT technology in vegetables will change the fortunes of companies like Kaveri.Considering the entry barrier of the industry and tedious process from R&D to  commercialization ( about 5 to 7 years for a new variety), all well accepted seed companies will be in a sweet spot in the years to come.Even if the management of Kaveri Seed is a bit media shy and believing only in their business and not in dialogues ,I strongly feels investors will ultimately realise the potential of this  company and the sector itself will re rate in not so distant future.Hence I reiterate a BUY on  KSCL @ CMP of Rs.470/- for long term investors.

For old posting on this company ,Click HERE

KAVERI SEED COMPANY / ADVANTA INDIA - RESULT UPDATES

Both these companies declared very good results for the June quarter

KAVERI SEED COMPANY LTD.


Turnover   Rs.241 Cr  v/s Rs.148 Cr

Net Profit  Rs.47 Cr   v/s Rs.31 Cr

EPS Rs.     Rs.34.5     v/s Rs.23



ADVANTA INDIA LTD


Turnover   Rs.225 Cr  v/s Rs.175 Cr

Net Profit  Rs.17 Cr   v/s Rs.4 Cr

EPS Rs.     Rs.10     v/s Rs.2.50


Since both these companies are in hybrid seeds segment and this industry is seasonal in nature ,it is not prudent to annualise the quarterly results based only on June quarter result.

Both these companies having huge potential in this space ,HOLD  both for long term.

KAVERI SEED COMPANY - REPEAT

I have recommended a Buy and Hold on KAVERI SEED COMPANY from Rs.272/- level.Currently it is quoting around Rs.305/- .With a strong R&D,aggressive business strategies and an able management who knows the pulse of the agriculture sector - this is a stock to watch in any correction .I believe , KSCL is a perfect fit for those who are considering equity as an asset class and willing to hold for long term with patience to reap bumper crops.

Old report can be accessed HERE

KAVERI SEED COMPANY -Future Perfect.

KAVERI SEED COMPANY – is one of the very few pure

listed  Indian  companies from hybrid seed sector.

Others from this sector are JK Agrigenetics ,Rallis,and

Advanta . Apart from these  other listed firms are

affiliates of foreign players like,Monsanto, Bayer

..etc. Kaveri Seed is a well managed Secunderabad

based firm promoted by Mr.GV Bhaskar Rao in 1976.

Company has grown a lot after that and now it is one

of the largest hybrid seed producer from South

India .Its product portfolio include seeds of

Corn, Cotton, Sorghum, Pearl Millet ,rice ,sunflower

and a wide variety of vegetables.Company also producing

various types of micro nutrients, plant hormones ,

bio-stimulants for different crops.Kavari also

producing organic plant protector under the brand

name ‘FIRE’. Other than this, company has a lot of

organic products to enhance yield from crops.

Recently Kaveri started operations in its  state

of an art facility for cob drying, seed processing

and cold storage which established in its owned 

farmland of 29 Acres in Medak district of Andhra

Pradesh. It added Red gram, onion, mustard and wheat

to is portfolio recently . This pure Indian player has

a very energetic R & D wing and introducing new

verities which can give good result even in bad

conditions like draught. Now in southern states of India

like Tamilnadu,Andhra and Karnataka ,precision farming is

gaining momentum and it is experienced as a great success.

This method requires hybrid seeds and scientific methods

of farming which is expected to bring big business to Kaveri.

                        In the financial front ,Company

is growing steadily and posted a turnover of Rs. 169 Cr

and a net profit of Rs.29 Cr in last financial year.

EPS for FY 2010 is Rs.21.20/-. Backed by good monsoon

compared with last year ,Kaveri is expected to post even

better result in this year. Its business is seasonal

and 90% income generated in first qtr.Company has an

equity base of Rs.13.7 Cr and out of this 63% is held

by promoters and 26 % by big investors including mutual

funds .Even from a low floating stock, promoters are

again buying from open market. In nutshell, with a clean

and dedicated management and excellent R & D Wing Kaveri

Seed  is a company to reap the benefits which is expected

to emerge in Farming sector ,going forward.This one stop

company for hybrid seed ,organic fertilizer and organic

pesticide  is quoting around Rs.272/-