CHANGING SCENARIO OF VEGETABLE SEED BUSINESS IN SOUTH INDIA

CHANGING SCENARIO OF VEGETABLE SEED BUSINESS IN SOUTH INDIA A PROJECT REPORT Submitted by GIRIRAJ PRASAD SHARMA (Reg. No. 04-0890-2008) In partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION INTERNATIONAL AGRIBUSINESS UNDER THE GUIDANCE OF Prof. T. S. SHIBIN (Assistant Professor) INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND 388 110 JULY-2010

INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND -388110 CERTIFICATE This is to certify that the project entitled Changing Scenario of Vegetable Seed Business in South India of M.B.A (International Agribusiness) embodies bonafide research work carried out by Giriraj Prasad Sharma under my guidance and supervision and that no part of this project work has been submitted for any other degree. The assistance, guidance and help received during the course of investigation have been fully acknowledged. Place: IABMI, Anand Date: 29/07/2010 Prof. T. S. SHIBIN Major Advisor

DECLARATION I hereby declare that the project entitled Changing Scenario of Vegetable Seed Business in South India Submitted for the M.B.A (International Agribusiness) degree is my original work and this has not formed the basis for the award of any degree, associate ship or other similar titles. Place: IABMI, Anand Name : Giriraj Prasad Sharma Date: 29/07/2010 Reg. No. : 04-0890 - 2008

Dedicated to My Beloved Parents And Guide

AKNOWLEDGEMENT I express deep sense of respect to Dr. G. B. Valand, Principal of IABMI, AAU, Anand for his encouragement, unquantifiable help, rays of advice and given opportunity to do project in prestigious organization. I sincerely and honestly confess that it has been a privilege for me to be his student who stood as a strong support in period of my project work. I am equally indebted to my Institute Advisor Prof. T. S. Shibin for his valuable suggestions, inspirations and big heartedness in sharing his valuable time and knowledge throughout project period as well as during project report writing. I highly thankful for guidance and co-operation rendered by Dr. R. S. Pundir, Dr. Sanjiv kumar, Prof. Y. A. Lad and International Agri-business Management Institute, Anand as a whole. It is proud privilege to unveil a hearty sense of indebtness towards the organization Mr. Bhupen Dubey (Global Head, UPL Group of Companies), Dr. Gajand Pimprikar (Global Head, Vegetable Seed Business), Company Guide Mr. H. P. Doddamani (Deputy General Manager), Mr. Jitendra Bandodkar (General Manager, HR), Mr. Nagaraju Sada (Assistant Manager, HR) Mr. Ashok Reddy (GM), Mr. Girish KN and Mr. Anand (Bangalore Zonal Office) for their inspiration and encouragement during the project time. I extend my gratitude towards Mr. A. Ravichandran (Regional Manager, Coimbatore), Mr. Attiraja (Regional Manager, Chittor, and A.P.), Mr. P B. Seenappa (Regional Manager Hubli, Karnataka), Mr. KLN Swami, Mr. Pawan Reddy and Mr. Sriniwas Reddy (Zonal Office Hyderabad, A.P).

My heart feels indebted for the plentiful co-operation and moral support extended by Mr. Nagraj (Associate Professor), Dr. Doddahanumaiah (Associate Professor), Dr. Venkatareddy (Associate Professor), Dr. G.N. Nagaraja (Head of Agri-Business Management Institute) from UAS, Bangalore (Karnataka) and Dr. Chandranath (Associate Professor) from UAS, Dharwad (Karnataka), Prof. Suresh Babu from KAU, Trissur (Kerala), Dr. Y.C. Zhala (Principal Scientist) from AAU, Anand (Gujarat). I am very thankful towards to Dr. Radheshayam Sharma, Dr. Shivraj Verma, Dr. Mukesh Meena, Dr. Basant Sharma, Dr. Govind Ram Jakhar, Dr. M. K. Sharma, Dr. Sarvan Sunda, Dr. R. S. Bana, Mr. Gyan Singh Meena, Dr. D. L.Yadav, Er. Mohmadmunaf Badi, Mr. Shrikant Vaishanav, Amod Kumar Saini, Abhijeet Singh and my unforgettable batch mate and lovely juniors. I am very thankful to my parents for the everlasting love and support which helped me to complete this work. From the depth of my heart I bow my head in extreme regards to the sweet family members for blessing me, to reach this destination. Place: Anand Date: 29/07/2010 GIRIRAJ PRASAD SHARMA

CHANGING SCENARIO OF VEGETABLE SEED BUSINESS Name of Student Giriraj Prasad Sharma (04-0890 2008) IN SOUTH INDIA Major Advisor Prof. T. S. Shibin (Assistant Professor) INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE ANAND AGRICULTURAL UNIVERSITY ANAND-388110 ABSTRACT The project entitled Changing Scenario of Vegetable Seed Business in South India was undertaken through primary market survey. The data were collected from Madanapalle (Andhra Pradesh), Coimbatore (Tamil Nadu), Hubli-Dharwar and Bangalore (Karnataka) during February 15 th to April 15 th 2010. Total tomato seed market in madanapalle region is 10000 kg in volume and Rs 18.195 crore in value. Out of which Golden seeds has 10% market share with 1000 kg in volume and 6.59 % market share with Rs. 1.20 Crore in value. Golden seeds is the 3rd and 5 th largest tomato seed player in Madanapalle in volume and value wise respectively. Total tomato seed market in Coimbatore region is 2500 kg in volume and Rs. 5.118 crore in value. Out of which Golden seeds has 15% market share with 375 kg in volume and 10.98 % market share with Rs. 56.25 lakh in value. i

Golden seeds is the 2 nd and 3 rd largest tomato seed player in volume and value wise in Coimbatore region respectively. Total tomato seed market in Hubli-dharwar region is 4050 kg in volume and Rs. 6.426 crore in value. Out of which 16 % market share with 648 kg captured by Golden seeds in volume and 11.98 % market share with Rs. 77.76 lakh in value. Golden seeds is the 2 nd and 3 rd largest tomato seed player in volume and value wise in Hubli-Dharwar respectively. Cabbage seed business is 5100 kg in Hubli-dharwar region. Out of which 20% market share with 1020 kg in volume and 19.04% market share with Rs. 122.40 lakh in value is held by Golden seeds. In Bangalore (Karnataka), baby corn seed sales is rapidly increased from 2005 to 2010. It increased from 250 kg in 2005 to 1000 kg in 2010. Major baby corn seed players are Golden Seeds, Syngenta India and CP Seeds with 70%, 27%, and 1% as volume wise market share and 62.89%,33.96% and 0.89% as value wise market share respectively. Golden seeds is the market leader in Baby corn seed business in bangalore region. ii

TABLE OF CONTENTS SR. NO. CONTENT PG. NO. 1. INTRODUCTION 1.1 Company Profile 1 1.2 Seed Industry Overview 4 1.3 Objectives 12 2. REVIEW OF LITRATURE 13 3. METHODOLOGY 3.1 Background Of The Study 15 3.2 Source of Data 15 3.3 Research Design 16 4. RESULT AND DISCUSSION 4.1 Potential of Tomato Seed Business in Madanapalle (A.P.) 19 4.2 Potential of tomato seed business in Coimbatore (T.N.) 35 4.3 Potential of tomato and cabbage seed business in Hubli, Karnataka 4.4 Potential of baby corn seed business in Bangalore, Karnataka 50 76 4.5 Result and Findings 90 5. SUMMARY AND CONCLUSION 5.1 Summary 94 5.2 Recommendations 96 iii

LIST OF TABLE TABLE NO. 1.1.1 CAPTION Integrated Business Country-wise Contribution 3 PG. NO. 1.1.2 Crop-wise Contribution of company s seed business 3 1.2.1 The World's Top 10 Seed Companies 2008 6 1.2.2 Growth trend of vegetable hybrid seed market in India 20 (Volume tons) 4.1.1 Trends of tomato seed sales in Madanapalle 19 4.1.2 Top ten tomato seed player and their product in madanapalle 4.1.3 Tomato seed market shared by tomato seed player (in volume) 37 37 4.1.4 Company s Tomato Seed Prices 26 4.1.5 Tomato seed market by tomato seed player (in lakh) 26 4.2.1 Trends of tomato seed sales in Coimbatore 35 4.2.2 Top ten tomato seed player and their product in Coimbatore region 4.2.3 Tomato seed market shared by tomato seed player (in volume) 39 39 4.2.4 Company s Tomato Seed Prices 42 4.2.5 Tomato seed market shared by tomato seed player (in value) 42 4.3.1 Trends of tomato seed sales in Hubli 50 iv

4.3.2 Trends of cabbage seed sales in Hubli 54 4.3.3 Top ten Tomato and cabbage seed player and product in Hubli 4.3.4 Tomato seed market share by seed company-wise in volume 4.3.5 Cabbage seed market share by seed company-wise in volume 58 58 61 4.3.6 Company s Tomato Seed Prices 64 4.3.7 Company s Cabbage Seed Prices 64 4.3.8 Tomato seed market share by seed company-wise in value 4.3.9 Cabbage seed market share by seed company-wise in value 65 68 4.4.1 Trends of Baby corn seed sales in Bangalore 76 4.4.2 Major baby corn seed player 79 4.4.3 Baby corn seed market share by seed Company-wise in volume 79 4.4.4 Company s Tomato Seed Prices 82 4.4.5 seed market share by seed company-wise in value 82 v

FIGURE NO. LIST OF FIGURE CONTENT PG. NO. 1.2.1 Contribution of the private sector in hybrid seed market (2008) 4 1.2.2 World Vegetables Growing Area 5 4.1.1 Trends of Tomato seed sales in Madanapalle Andhrapradesh (in quantity) 4.1.2 Trends of Tomato seed sales in Madanapalle Andhrapradesh (in %) 4.1.3 Proportion of hybrid and open pollinated seed market in Madanapalle (in %) 20 21 22 4.1.4 Tomato seed player s tomato seed market share (in %) 24 4.1.5 Tomato seed player s tomato seed market share (in quantity) 4.1.6 Tomato seed player s tomato seed market share (in lakhs) 4.1.7 Tomato seed player s tomato seed market share in value (in %) 4.2.1 Trends of Tomato seed sales in Coimbatore Tamil Nadu (in quantity) 4.2.2 Trends of Tomato seed sales in Coimbatore, Tamil Nadu (in %) 4.2.3 Proportion of hybrid and open pollinated seed market in Coimbatore (in %) 25 27 28 36 37 38 4.2.4 Tomato seed player s tomato seed market share (in %) 40 4.2.5 Major Player of Tomato Seed Market in Coimbatore in Quantity (Kg.) 41 vi

4.2.6 Major Player of Tomato Seed Market in Coimbatore in Value (Lakhs Rs.) 4.2.7 Tomato seed player s tomato seed market share in value (in %) 4.3.1 Trends of Tomato seed sales in Hubli-dharwar (in quantity) 43 44 51 4.3.2 Trends of Tomato seed sales in Hubli-dharwar (in %) 52 4.3.3 Proportion of hybrid and open pollinated seed market in Hubli-dharwar (in %) 4.3.4 Trends of Cabbage seed sales in Hubli-dharwar (in quantity) 4.3.5 Trends of cabbage seed sales in Hubli-dharwar Karnataka (in %) 4.3.6 Proportion of cabbage hybrid and open pollinated seed Market in Hubli-dharwar Karnataka (in %) 4.3.7 Tomato seed player s tomato seed market share in Hublidharwar market (in %) 4.3.8 Major Player of Tomato Seed Market in Hubli-dharwar Karnataka in Quantity (Kg.) 4.3.9 Cabbage seed player s Cabbage seed market share in Hubli-dharwar market (in %) 4.3.10 Major Player of Tomato Seed Market in Hubli-dharwar Karnataka in Quantity (Kg.) 4.3.11 Major Player of Tomato Seed Market in Hubli-dharwar in Value (Lakhs Rs.) 4.3.12 Tomato seed player s tomato seed market share in value (in %) 4.3.13 Major Player of cabbage Seed Market in Hubli-dharwar in Value (Lakhs Rs.) 53 55 56 57 59 60 62 63 66 67 69 vii

4.3.14 Cabbage seed player s Cabbage seed market share in value (in %) 4.4.1 Trends of baby corn seed sales in Bangalore, Karnataka (in quantity) 4.4.2 Trends of baby corn seed sales in Bangalore, Karnataka (in %) 4.4.3 Baby corn seed player s baby corn seed market share in Bangalore market (in %) 4.4.4 Major baby corn Seed Player in baby corn Seed Market in Bangalore, Karnataka in Quantity (Kg.) 4.4.5 Major Player of Baby corn Seed Market in Bangalore in Value (Lakhs Rs.) 4.4.6 Baby corn seed player s Baby corn seed market share in value (in %) 70 77 78 80 81 83 84 viii

NOMENCLATURE AAU A.P. CFTRI DGM e.g. etc. GATT GM GOI i.e. IAB IABMI ICAR IICPT IIHR IIM KAU KG MBA MNCs NFSM NHB NHM NPSD NREGA NSA NSB Anand Agricultural University Andhra Pradesh Central Food Technology and Research Institute Deputy General Manager Example Excreta General Agreement on Trade & Tariff General Manager Government of India that is International agri-business International Agribusiness Management Institute Indian Council of Agricultural Research Indian Institute of Crop Processing and Technology Indian Institute of Horticultural Research Indian Institute of Management Kerala Agricultural University Kilogram Master of Business Administration Multinational Companies National Food Security Mission National Horticulture Board National Horticulture Mission New Policy on Seed Development National rural Employment Guaranty Agency National Seed Association National Seed Board ix

NSC National Seed Corporation NSP National Seed Project OECD Organization for Economic Co-operation and Development O.P. Open Pollinated P.A. Per annum PD Preferred dealer PHS Prabhakar Hybrid Seeds Prof. Professor R&D Research and Development Reg. no. Registration Number RKVY Rashtriya Krishi Vikas Yojana Rs. Rupees SAU State Agricultural University SFC State Farm Corporation SSC State Seed Corporation T.N. Tamil Nadu UAS University of Agricultural Sciences UPL United Phosphorus Limited US$ United State Dollar USA United State of America WTO World Trade Organization % Percentage x

I

I. INTRODUCTION 1.1 Company Profile UPL Introduction UPL is one of the top 4 generic Agrochemical giants in the world and India's biggest producer and exporter of Agrochemicals. Advanta was the Netherlands based global seed giant, which was acquired by UPL group in April 2006 and Global Head quarter was moved to Hyderabad. This was the first significant strategic move by Agrochemical giant UPL to make a foray into the fastest growing Seed industry. Advanta India Limited is a subsidiary of United Phosphorus Limited (UPL) a large Indian Agrochemical Company with a group turnover of Rs. 3700 Crores. United Phosphorus Limited (UPL) incorporated in1969 is a leading global producer of crop protection products, intermediates, specialty chemicals and other industrial chemicals. UPL has its presence across value added Agri inputs ranging from seeds to crop protection and post harvest activity. Subsequently, Golden Seeds and Unicorn Seeds both medium size Vegetable seeds companies based at Hyderabad and Bangalore, were acquired in 2007 and 2008 respectively. With these initiatives, UPL expanded its footprints in field crops and vegetable crops firmly. Advanta India Introduction Advanta India Limited is the holding company for the global business of Advanta. Advanta is one of the world's leading seed businesses. Established in 1996, Advanta is the culmination of a joint venture between two wellestablished seed businesses: Royal Group, based in the Netherlands, and Zeneca Seeds, based in the United Kingdom. Advanta India Limited is the First Multinational Seed Company in the country. With a strong presence in the domestic & International market, Advanta has been steadily investing in 1

research, development and technology. Company has unique & proprietary germplasm and intellectual properties, which gives a robust platform for the growth. Advanta is leading this sector in various crops like Sunflower, Rice, Corn, Mustard, Cotton, Vegetables etc. Research & Development The Company has been established with the prime objective of conducting research, development, production and marketing of superior high yielding hybrid seeds of crops of national importance. It's R&D strategy involves realizing genetic gains in its elite, proprietary germplasm at a faster rate with higher quality than its competitors. Advanta have strong research & development capabilities in genetics which provide a critical edge to develop innovative products. Product testing networks are spread across the relevant agro- marketing regions and they process, guide and promote the Advanta s products. Research Location Bangalore Hyderabad Vapi Sonepat Katraine Breeding Sunflower, Corn, Mustard and Rice, Tomato, Chillies, Egg plant, Okra, Melons and Gourds Breeding -Sorghum, millet, corn and rice. Statistics support for all crops. Cotton Cabbage, Cauliflower, Knolkol, Reddish, Carrot Vegetables - Cole crops Biotechnology Dihaploids for rice, corn and mustard. Future biotech centre for molecular marker, transformation and di-haploid services to support crops on a global and India basis Molecular markers and transformation supporting cotton. 2

Table 1.1.1 Integrated Business Country-wise Contribution Integrated Business Country-wise Contribution Countries Percentage Australia 26 India 25 Thailand 12 Argentina 11 USA 10 Others 16 Total 100 Table 1.1.2 Crop-wise Contribution of Company s seed business Crop-wise Contribution Crop % Sorghum 29 Sunflower 21 Vegetable 18 Corn 13 Canola 11 Others 08 Total 100 Geographies Operations in 4 continents & 5 countries Exports go into 25 other countries Core Crops Global Regional : Sorghum, Sunflower, Tropical Corn and Vegetables : Rice, Cotton and Cole crops 3

1.2 Seed Industry Overview Seed is the basic and most critical input for sustainable Agriculture. The response of all other inputs depends on quality of seeds to a large extent. It is estimated that the direct contribution of quality seed alone to the total production is about 15 20% depending upon the crop and it can be further raised up to 45% with efficient management of other inputs. About 125 million tons of tomatoes were produced in the world in 2008. China, the largest producer, accounted for about one quarter of the global output, followed by United States and Turkey. Structures of seed industry Public Sector: Giant public sector players include the National Seeds Corporation (NSC), the State Farms Corporation of India (SFCI) and the thirteen State Seed Corporations (SSCs). Private Sector: The private sector accounts for 70% of the market in terms of market turnover whereas the public sector has the greater share in terms of volume sale. Source: - National Seed Association (2008) Fig 1.2.1: - Contribution of the private sector in vegetable seed market 4

World Scenario of Seed Business The area under vegetables is growing at 2.8% which is higher than the growth of area under other crops like cereals, fibers, oilseeds and fruits. However, productivity improvement for cereals and fiber crops are double than that of it, indicating the need for more conceited efforts. Fig. 1.2.2 World Vegetables Growing Area Source: ETC Group Based on industry statistics, ETC Group estimated that the proprietary seed market accounts for 82% of the commercial seed market worldwide. In 2007, the global proprietary seed market was US$22.000 million. (The total commercial seed market was valued at $26.700 million in 2007). 5

Table 1.2.1: - The World s Top 10 Seed Companies Company % of global Country Seed Sales proprietary seed Name (US$ Millions) market Monsanto US 4.964 23% DuPont US 3.300 15% Syngenta Switzerland 2.018 9% Groupe Limagrain France 1.226 6% Land O' Lakes US.917 4% KWS AG Germany.702 3% Bayer Crop Science Germany.524 2% Sakata Japan.396 <2% DLF-Trifolium Denmark.391 <2% Takii Japan.347 <2% Total 14.785 67% Source: ETC Group, 2007 The top 10 seed companies account for $14.785 million or two-thirds (67%) of the global proprietary seed market. The world s largest seed company, Monsanto, accounts for almost one-quarter (23%) of the global proprietary seed market. The top 3 companies (Monsanto, DuPont, and Syngenta) together account for $10.282 million or 47% of the worldwide proprietary seed market. 6

Indian Scenario of Seed Business Increase in population, urbanization and greater health awareness; have contributed to rise in domestic consumption of vegetable. India produces 129 million tonnes of vegetable from an area of 7.9 million hectare (NHB database, 2009). According to database released by (National horticulture board) Ministry of Agriculture, there has been 10.64% increase in area and 15.9% increase in vegetable production during the period of 2005-06 to 2008-09. India s share of world vegetable market is around 14%. India is endowed with quite a diverse climatic condition, which enables production of more than 50 indigenous and exotic vegetables. The Evolution of the Seed Industry in India Post-NSP 1988 Current status Private sector accounts for 80% turnover in seed 1960s-1980s Minimal private sector participation R&D in public domain Restrictions on germplasm exchange, foreign ownership, etc. Seed industry boomed as a result of several Govt. Initiatives Foreign direct investment allowed and encouraged Imports of improved varieties and breeding lines liberalized Trade regulations liberalized Almost 1/3 companies have a global technology/ financial partner Private seed companies are spending 10-12% of their turnover in R&D R&D budget of medium sized companies is growing @ 20% p.a. 7

Indian seed market is the eighth largest in the world and it is almost exclusively supplied by domestically produced seeds except for very little quantity of hybrid vegetables. The total seed industry in India has been valued to approximately Rs 6000 Cr. over a period of time in which Vegetable seed market contributes Rs 1250 Cr. It has evolved to a great height, especially after 1988, when the new seed policy opened gates to the private-sector investments. Currently, more than 500 hybrid field crops and vegetables are being marketed as genuine labeled seeds, mostly by private seed companies. The private seed sector comprises of about 20 major players (Contributes approximately 65% in sales), several medium (Contributes approximately 25% in sales) and a large number of small and unorganized players with local presence (Contributes approximately 10% in sales). In 2009, the total size (in sales) of Indian vegetable seed market was Rs. 1250 Cr. The top 10 seed companies account for Rs. 786 Cr. or 63% of the Sales of Indian seed market. The India's largest seed company Syngenta, accounts for almost Rs. 130 Cr. or 10.4% of the Sales of Indian seed market. The top 5 companies Syngenta, Bayer Crop Science (Nunhems), Monsanto (Seminis), Namdhari and Mahyco all together account for Rs. 550 Cr. or 44% of Sales of Indian seed market. Growth Trend of Vegetable Hybrid Seed Market Population of our country is increasing and it has already crossed the 100 Cr. mark. Therefore, the demand of vegetable will grow substantially and it is supposed to increase up to 200 million tones to meet the demand for increasing population by 2020 with the productivity increase to 25 tn./ ha 8

Table 1.2.2: - Growth trend of vegetable hybrid seed market in India (Volume tons) Crop Estimated Estimated % Expected Sales (1998) Sales (2008) Increase next 5 years Tomato 24.5 48 95.9 62 Okra 250 900 260 1300 Cabbage 30 50 66.67 60 Cauliflower 20 40 100 50 Brinjal 15 25 66.67 35 Ridge gourd 7 27 285.71 42 Bitter gourd 15 50 233.33 70 Bottle gourd 25 50 100 70 Bell pepper 25 50 100 70 Carrot - 12-25 Cucumber - 25-50 Chilli pepper 20 35 75 55 Source: - National Seed Association (2008). Although, India ranks second in the world as far as total production of vegetable is concerned, the productivity of vegetable in our country is far below than the developed countries of the world. The fact mentioned above clearly reflects that importance of using good quality seeds for achieving higher production and productivity from limited land resources. It is quite evident that in coming era, vegetable seed industry will grow phenomenally. If farmers are properly and effectively communicated the benefits of using superior quality of agricultural inputs, they will slowly, but surely respond favorably. 9

South India Vegetable Seed Scenario In south India climate, soil and many favorable factors are responsible for vegetable production. In recent years vegetable share increasing in total crop production. Seed replacement rate are increasing so that hybrid seed proportion increasing. South India major seed player are Bayer crop science, Syngenta, Namdhari seeds, Advanta India and US Agri seeds, out of them Advanta India want to capture more seed business market. Particular company wants to capture potential tomato, cabbage and baby corn seed business in south India. Private sector companies have a significant place mainly in the case of maize, sunflower, cotton and vegetable seeds and planting materials of horticultural crops. As the private sector has not been enthusiastic about entering into seed production of high volume low margin crops of wheat, paddy, other cereals, oilseeds and pulses, the public sector seed corporations will continue to remain dominant in cereals, pulses and oilseeds for many more years to come. Vegetable production is the emerging and diversification in agriculture. In vegetable production margin is more, high value with low volume. Today food scarcity era the vegetable production is the boon for Indian agriculture through the use of hybrid varieties of seed. Population is increasing and land is limited so we have to increase production as well as productivity to fulfil the food requirement of the population. The share of hybrid vegetables in respective total cropped area ranges around 28.3% in tomato, 22.9% in cabbage, 1.7% in cauliflower. Through hybrid seeds average productivity has been increased in tomato by 49.7%, cabbage (55.7%) and cauliflower (49.4%). Vegetable is the short duration crop compare than agronomic crops so that through intensive cropping system by increasing the grossed crop area we will increase the production as well as productivity. 10

In Andhra Pradesh, Madanapalle is a major tomato producing region in Andhra Pradesh. It contains nearly 50% of tomato produce and 40% tomato producing area of Andhra Pradesh. In this area tomato production is increasing year by year and new companies entering in tomato seed business. In this area nurserymen raise the nursery and sell to farmers so that seed required very less compare to direct sowing. Through seedling raise seed required 35 gram/hectare while 100gram/hectare for direct sowing. In Tamil Nadu, Coimbatore tomato growing area is decreasing due to unavailability of Labour Day by day because labour is working in NREGA scheme governing by govt. of India, lack of water for irrigation, less land holding capacity. All the reasons are responsible for diversification from tomato to coconut cultivation, banana cultivation. Coconut farming requires less labour, less water due to deep root system, less cost of production, small area for cultivation, very less infestation or attack by insect- pest and diseases. Tomato prices are fluctuating frequently so that risk is more that s why tomato growing area decreasing day by day. In Karnataka, Hubli area the tomato growing area is decreasing and sugarcane growing area is increasing as well as cabbage sowing area also slightly increasing. Tomato sowing area as well as tomato production increasing due to unavailability of labour, price fluctuation, disease and pest attack on tomato, nature of product is perishable, market is so far, food processing industries facilities not available and tomato contract farming system is not there. Baby corn is the pre-mature harvested product that is used as a raw or vegetable purpose. In Bangalore as a like metro city have a good market for baby corn and market increasing day-by-day because fast life needs fast food due to lack of time with nutrional element so that baby corn is the best option. 11

OBJECTIVES 1. To find out the vegetable seed potential in south India. 2. To know the crop wise (quantity and value) share of organized and unorganized companies. 3. To know the company ranking in terms of business of Tomato, Cabbage and Baby corn in south India. 4. To know the competitors strength and weakness. 5. To know our strength and weakness. 6. To know distribution structure in south India 12

II

II. REVIEW OF LITERATURE Seed is the basic input in agriculture that contributes to production. Hence there is an increasing need to use labeled seed material. Simultaneously it is also important to use varieties that fit well in given agro-climatic conditions and duration. Improper selection of varieties, farm saved seeds, non-descript varieties can seriously affect crop yields (M. S. Shembekar, 2008). 2.1 Role of industry According to NSAI-2009, Seed industry in the country has significant contribution to-growth of agriculture. Over the years seed industry has emerged as a one point solution for agriculture by contributing in research, production, processing and delivering quality seed material to the farmers of not only proprietary search but also public bred seed material. 2.2 Role of Private Companies for Quality Seed Production and Distribution to Farmers. (D. M. Kale and N. P. Patel 2008), the basic requirement of man is food, cloth and shelter. These needs are provided from agriculture. Food is available in the form of grains, cloth from fiber crops and house goods and decorative from jungle wood. Agriculture is one of the finest businesses in the world. The availability of cultivated land is very essential factor in agriculture. India stands third behind Russia and America for availability of cultivated land. China stands forth although total surface area is more compared to India. It is evident from the history that green revolution occurred before the beginning of industrial revolution in developed countries like England, America, Germany, France and Japan. 13

2.3 Major categories of the seed firms (Mukesh Pandey and Deepali Tiwari, 2010), Following are the major categories of the seed firms operating in vegetable seed industry in India: a. Seed Firms without R&D b. Seed Firms with R&D c. Seed Firms with Foreign Collaboration d. MNC Subsidiaries e. Joint Sector Firms f. Public Sector Firms 2.4 Structure of seed industry According to N. Anand & Uday Singh, 2009, Public Sector generally, seed industry in a country owes its strength to the public sector program. Private Industry - Technological skills and expertise in breeding, production and quality control along with marketing skills have put private sector as efficient developer s producers and marketers of hybrid seeds. The ultimate success of this enterprise can be gauged from the profits that accrue to the grower. The private seed industry relying on varieties/germplasm. With the removal of restrictions, inflow of germplasm and technology was more rapid, resulting in development of superior hybrids. lt was also soon clear that in major vegetable crops, import directly from temperate countries cannot substitute for hybrids developed. Through local research and development. Imports are now made mostly in crops like cabbage, cauliflower, carrot, coriander and beetroot valued at $ 34 million (NSAI, 2009). 14

III

III. METHODOLOGY 3.1 Background of the Study United phosphorus limited`s group company, Advanta India Ltd. is the major Seed MNC. This company wanted to know the potentiality of the market for tomato and baby corn seed business in south India. Advanta India Ltd. wanted to capture more shares in existing hybrid seed market. Besides, company also wanted to capture traditional seed market by replacing with hybrid seeds through creating awareness among farmers about the benefits of it. Advanta also wanted to know that where it stands in seed business in south India, particular in vegetable seed business and actually position in tomato and baby corn seed. Strengths and weakness own self as well as rivalry so that we can make strategy to take as a opportunity to competitor`s weakness and improve our weakness through focused on competitor strength. Company wanted to adopt the best channel of seed distribution through comparison among public, private and co-operatives seed distribution channel. 3.2 Source of Data A. Primary data Primary survey done with the help of questionnaire. Seed distributers, preferred dealers and farmers were the respondents for collecting information.the main information collected present market as well as potential market vegetables seed business The primary data regarding Tomato Seed sales, price, market leader companies, market leader hybrid, distribution channel, strength and weakness our as well as our competitor company. These types of data collected through primary 15

SNAPSHOTS OF PRIMARY SURVEY OF SOUTH INDIA Agricultural Produce Marketing Committee on Tomato in Madanapalle (A.P.) Agricultural Produce Marketing Committee on Tomato in Madanapalle (A.P.)

Agricultural Produce Marketing Committee on Tomato in Coimbatore (T. N.) Agricultural Produce Marketing Committee on Tomato in Coimbatore (T. N.)

Agricultural Produce Marketing Committee on Vegetables in Hubli, Karnataka Agricultural Produce Marketing Committee on Vegetables in Hubli, Karnataka

survey. Mostly primary data are the major sources of this project and study because all the work depended fieldwork and field survey. B. Secondary data World area, production and production, Seed policy and regulations, Historical perspective, Seed Industry and GATT/WTO/TRIPS, World scenario of seed business, Indian scenario of seed business,etc information collected from NHB. Directorate of horticulture and district, taluka and village records. 3.3 Research Design This chapter describes the methods and procedure used for collection and analysis of data in the study. The specific methodology adopted for the selection of different units and other details are given below. 1. Sampling design 2. Sampling unit 3. Research instrument 4. Area of the the study 5. Analytical tools 6. Reference period 7. Survey Products 1. Sampling design In order to achieve the objectives of the study multi- stage stratified random sampling design with a village as the primary sampling unit and operational holding with in a village as the ultimate sampling unit was restored for selection of the sample for the study 16

2. Sampling unit A. Selection of distributer and preferred dealer- Preference given to UPL companies distributer and preferred dealer but to know actual market situation or position also considered other major distributer or dealer in that particular taluka market. B. Selection of Farmer/Nurseryman- Five farmers from each village selected for survey purpose. Those are growing tomato cabbage and baby corn at large scale. In those area nurserymen involving are involving in this distribution channel. 3. Research instrument Considering the nature of the study as well as for obtaining correct and perfect data from the respondents, personal interview with the help of structured questionnaire was used. Some ambiguous points were clarified through discussing with concern experts. On the basis of their suggestions, the interview schedule fixed with farmer and distributer dealer. 4. Area of the study A. Selection of study area - The Southern region of the India was purposely selected for the present study which nearly covers all states growing tomato at large level. B. Selection of States- The South India comprises 5 States namely Andhra Pradesh, Karnataka, Tamil Nadu, Kerala and Goa. Out of them Andhra Pradesh, Tamil Nadu and Karnataka are major tomato growing area. Thus there highly concentrated tomato cultivation states were selected for the present study and for baby corn Bangalore (Karnataka) selected. C. Selection of the region - In Chittor Region (Andhra Pradesh), Coimbatore (Tamil Nadu), Hubli-Dharwar (Karnataka) and Bangalore (Karnataka) region selected for study or survey purpose. 17

D. Selection of district - A list of district growing of tomato, cabbage and baby corn in each selected regional area of company was prepared and arranged in ascending order. Thus in all district was chosen at random comprising two district from each the selected region. E. Selection of taluka- Major tomato cabbage and baby corn growing taluka selected at randomly. F. Selection of village- Village selected from selected taluka at random basis major producing village. And those villages have more land in sowing as well as seed also more selling in total particular areas. 5. Analytical tools The data collected during the period of inquiry were compiled and analyzed systematically through tabular analysis and keeping in view of the objectives of the study. A. Tabular analysis: - The tabular analysis was employed to work-out the major seed player, major hybrid, market share in volume, and value-wise total sales, company-wise sales. The socio-economic indicators of different categories of respondents were also studied in the tabular analysis by using mathematical techniques and economic concerns. B. Pie-chart: - To know percent market share of individual out of total that showing through the pie-chart. Research design: Descriptive research design. Sample size: Different stage it will be selected with consultation of organization and view of the limitation of the resources. 6. References period The study covered the Agricultural year 2009-2010 and the data were collected during the months of February to April -2010. 7. Survey Commodities Commodities included in the study were Tomato, cabbage and Baby corn. 18

IV

POTENTIAL OF TOMATO SEED BUSINESS IN MADANAPALLE (ANDHRA PRADESH)

IV. RESULTS AND DISCUSSION 4.1 Potential of Tomato Seed Business in Madanapalle (A.P) Madanapalle is a major tomato producing region in Andhra Pradesh. It contains nearly 50% of tomato produce and 40% tomato producing area of Andhra Pradesh. In this area tomato production is increasing year by year and new companies entering in tomato seed business. MNCs and regional companies entering in this sector because Bangalore metro market is very nearer to Madanapalle. In this area nurserymen raise the nursery and sell to farmers so that seed required very less compare to direct sowing. Through seedling raise seed required 35 gram/hectare while 100gram/hectare for direct sowing. 4.1.1 Trends of tomato seed sales in Madanapalle Table. 4.1.1 Trends of tomato seed sales in Madanapalle Years Seed sales quantity (kg) Percentage increase Hybrid seed market (%) Open pollinated seed market (%) 1990 1000 - - 100 2000 3500 250 65 35 2001 4500 28.57 70 30 2002 5300 17.77 73 27 2003 5800 9.43 76 24 2004 6400 10.34 78 22 2005 7000 9.37 80 20 2006 7700 10 90 10 2007 8400 9.09 95 5 2008 9000 7.14 100-2009 9500 5.55 100-2010 10150 6.84 100-19

Trends of Tomato seed sales in Madanapalle Andhra Pradesh (In quantity) 12000 10000 8000 6000 4000 3500 4500 Seed sales quantity (kg) 10150 9000 9500 8400 7700 7000 6400 5300 5800 2000 0 1000 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fig. 4.1.1 Trends of Tomato seed sales in Madanapalle Andhra Pradesh (In quantity) Seed sales in Madanapalle market is rapidly grown in 1990 to 2000 nearly 1000 to 3500kg and up to 2010 is reached 10150 kg. 20

Trends of Tomato seed sales in Madanapalle Andhra Pradesh (In percentage) 300 250 250 Percentage Growth of Tomato Seed Sale in Madanapalle 200 150 100 50 28.5 17.7 9.4 10.3 9.3 10 9.1 7.1 5.5 6.8 0 0 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fig. 4.1.2 Trends of Tomato seed sales in Madanapalle Andhra Pradesh (In percentage) During 1990 to 2000 tomato sales increase 250% and afterward it is increasing 28.57%, 17.77%, 9.43%, 10.34% and 6.84% in 2001, 2002, 2003, 2004 and 2010 respectively. 21

4.1.2 Proportion of hybrid and open pollinated seed market in Madanapalle 120 100 80 60 100 65 70 73 76 78 80 90 95 100 100 100 40 35 30 27 24 22 20 20 0 10 5 0 0 0 0 Years 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Hybrid seed market (%) Open pollinated seed market (%) Fig. 4.1.3 Proportion of hybrid and open pollinated seed market in Madanapalle (In percentage) In1990 the total seed market covered by open pollinated seed after rapidly hybrid seed market increased and open pollinated seed market decreased. In 1990 tomato seed sales 100% open pollinated seed and in 2000 the open pollinated seed market decreased up to 35% and hybrid seed market increased up to 65 % and it reached up to 100% in 2010. 22

4.1.3 Top ten tomato seed player and product in Madanapalle Table 4.1.2 Top ten tomato seed player and product in Madanapalle Sr. Seed Player Tomato Product No. 1 Nunhems Seed 5005 2 US Agri Seeds 618, 3140 3 PHS 9005 4 Golden Seeds 2082, 3006 5 Syngenta India Abhinav 6 Mahyco research Suparna 7 Sinnova seeds Lyco-gem 8 Nuziveedu seeds Bhagya 9 East-west Seeds Red-ruby 10 Tokita Seeds Swathi 4.1.4 Company-Wise Market of Tomato Seed Business (In Volume) Table.4.1.3 Tomato seed market shared by tomato seed player (In volume) Sr. No. Seed Player Market share (%) Market share(kg) 1 Nunhems 30 3000 2 US Agri seeds 26 2600 3 PHS 24 2400 4 Golden Seeds 10 1000 5 Syngenta seeds 3 300 6 Mahyco research 2 200 7 Sinnova 1.5 150 8 Nuziveedu seeds 1 100 9 East-west seeds 0.5 50 10 Tokita 0.5 50 Others 1.5 150 Total 100 10000 23

Tomato seed player s tomato seed market share (In percentage) Tomato Seed Market share (%) 1 0.5 0.5 1.5 1.5 3 2 nun hemps Us Agri seeds 10 PHS 30 Golden Seeds Syngenta seeds Mahyco research 24 Sinnova 26 Nuziveedu seeds East-west seeds Tokita Others Fig. 4.1.4 Tomato seed player s market share (In percentage) Nunhems seeds 30%, US Agri 26%, PHS 24% and golden seed 10% tomato seed sales (in volume) market. Nunhems the market leader with 30% market. 24

Tomato seed player s tomato seed market share (in quantity) 3500 Market Share in Quantity (Kg.) 3000 3000 2500 2600 2400 2000 1500 1000 1000 500 300 200 150 100 50 50 150 0 Fig. 4.1.5 Tomato seed player s market share (In quantity) In volume the nun hemps 3000 kg, US Agri 2600 kg, PHS 2400 kg and golden seed having 1000 kg tomato seed sales in Madanapalle in 2010. Nunhems is the market leader with 3000 kg tomato seed sales. 25

Table. 4.1.4 Company s Tomato Seed Prices Sr. Company Name Hybrid Name Price/Kg No. 1 Nun hemps seeds 5005 20000 2 US Agri seeds 618,3140 25000 3 Golden seeds 2082 12000 4 East-west seeds Red ruby 25000 5 PHS 9005 7500 6 Sinnova seeds Lyco-zem 10000 7 Nuziveedu seeds Bhagya 10000 8 Tokita seeds Swathi 10000 9 Mahyco research Suparna 16000 10 Syngenta India Abhinav 60000 4.1.5 Company-Wise Market of Tomato Seed Business (In Value) Table. 4.1.5 Tomato seed market shared by tomato seed player (in value) Sr. No. Company Name Hybrid Name Market share (kg) Price/ Kg Sales (in lakh.) Market value (%) 1 US Agri seeds 618, 3140 2600 25000 650 35.72 2 Nun hemps seeds 5005 3000 20000 600 32.97 3 PHS 9005 2400 7500 180 9.89 3 Syngenta India Abhinav 300 60000 180 9.89 4 Golden seeds 2082 1000 12000 120 6.59 5 Mahyco research Suparna 200 16000 32 1.75 6 Sinnova seeds Lyco-zem 150 10000 15 0.82 7 East-west seeds Red ruby 50 25000 12.5 0.68 8 Nuziveedu seeds Bhagya 100 10000 10 0.54 9 Tokita seeds Swathi 50 10000 5 0.27 Others 150 10000 15 0.82 10000 Kg 1819.5 100 % 26

Tomato seed player s tomato seed market share (in lakhs) 700 600 650 600 500 400 300 200 180 180 100 0 120 32 15 12.5 10 5 15 Fig. 4.1.6 Tomato seed player s tomato seed market share (In lakhs) Value wise market leader are US Agri Seed with 650 lakh, Nunhems Seed with 600 lakh, PHS and Syngenta both with 180-180 lakh and golden seed 120 lakh. Total market is Rs. 1819 lakh. 27

Tomato seed player s tomato seed market share in value (In percentage) Tomato Seed Market value (%) 0.68 0.82 1.75 6.59 0.54 0.27 0.82 US Agri seeds Nunhemps seeds PHS Syngenta India 9.89 35.72 Golden seeds 9.89 Mahyco research Sinnova seeds East-west seeds Nuziveedu seeds 32.97 Tokita seeds Others Fig. 4.1.7 Tomato seed player s market share in value (In percentage) Value wise Tomato seed player are US Agri seed with 35.72%, Nunhems seed 32.97% PHS and Syngenta both with 9.89-9.89% and Golden seed having 6.59% Tomato seed market. 28

4.1.6 Tomato sowing area under Madanapalle(In hectare) Total seed =10000 kg Farmer getting seed through two ways:- 1. Nursery man raise nursery from 90% seed.010kg contains in =1 packet 1 kg contains in=1/.010 packet 9000 kg contains =1/.010x9000=900000 packet 3 packet required for =1 hectare 1 packet required for =1/3 hectare 900000 packet required for =1/3x900000=300000 hectare 2. Direct selling to farmer 10 %.010kg contains in =1 packet 1 kg contains in=1/.010 packet 1000 kg contains =1/.010x1000=100000 packet 10 packet required for =1 hectare 1 packet required for =1/10 hectare 100000 packet required for =1/10x100000=10000 hectare Total area in hectare=300000+10000 =310000 hectare 29

4.1.7 Competititor s SWOT Analysis Strength:- Credit period facility Cash discount. Field activities and regularly inspection of field Need-based variety launch. Attractive and safe packaging. Sales return policy. Product information pamphlets. Traceability and clarity in accounting. Attractive incentives. Good relation with customers. Weakness:- Field demonstration not proper. Timely inspection not there. Some companies having old varieties seeds. Field demo not appropriate. Field officers not skilful and knowledgably. Season wise varieties not having. Some companies s seed price is more. No returning expired stock. Packaging not attractive. 30

Opportunity:- Tomato growing area increasing so that seed market will increase. Contract farming. Consortium with contract firm. Linkage with credit provider with farmer. Tomato food processing increasing so that tomato seed market will increase. Govt. Giving incentives and concession for fruit and vegetable processing so that production will increase. Threat:- Quick tomato price fluctuation. Through nursery raising seed are required less compare than direct sowing. Tomato producing area replacing by other horticultural crops and medicinal crops. Tomato is perishable nature so that distant people do not used to grow to tomato because market availability is so far. Varieties are degrading very rapidly. In tomato seed business many new companies are coming so that competition will increase and obvisialy tomato seed price will decrease. Region wise as well season wise varieties should differ so that launching new varieties and research is more costly. Always fear of entrant of new competitor varieties and may replace to our variety. 31

4.1.8 Golden Seeds Company s SWOT Analysis Strength:- Good relation with customers. Good brand image. Timely supply. Credit facility. Expired stock return facility. 2082 is a good product in market. Weakness:- New varieties not launching. Price is more comparing than others. packaging not attractive. Field activities and demos are less. Irregular price increase. Discount not as per expectation. Field work is less. Less promotional activities. Sales policy. Timely supply not there. Demand creation work very less. 32

Opportunity:- Good brand image. Integrated group so that distribution channel is sound. Relation with farmer so close because integrated expert available for solving the problem related with seed, pesticides, and fungicides. Integrated business having all over India distribution channel so that promote any new product is very easy. Good chance to become leader in seed and pesticides due to integrated business. Opportunity in pesticides and seed consultancy. UPL group having large turnover so that they can introducing the new hybrid with economic scale. Acuquision with so many companies chances is more Threats Local Seed player coming in market so that competition increase and chance to falling market share. Tomato fruit price very fluctuate so that tomato farming diversify with horticultural and medicinal crops and plants. Always fear of variety replacing by new entrant variety. Competitor s less price variety can replacing to our variety. 33

4.1.9 Distribution channel of tomato seed in Madanapalle market In Madanapalle market two types distribution channel is working for seed marketing and sales of tomato seed. 1. Distributor In distributer system 3 channel working:- Distributer Dealer Farmer Distributer Nurseryman Farmer Distributer Dealer Retailer Farmer 2. Preferred Dealer In Preferred Dealer system 2 channel working:- Preferred Dealer Retailer Farmer Preferred Dealer Nurseryman Farmer 34

POTENTIAL OF TOMATO SEED BUSINESS IN COIMBATORE (TAMIL NADU)

4.2 Potential of Tomato seed business in Coimbatore (T.N) Coimbatore tomato growing area is decreasing due to unavailability of Labour Day by day because labour is working in NREGA scheme governing by govt. of India, lakh of water for irrigation, less land holding capacity. All the reasons are responsible for diversification from tomato to coconut cultivation, banana cultivation. Coconut farming requires less labour, less water due to deep root system, less cost of production, small area for cultivation, very less infestation or attack by insect- pest and diseases. Tomato prices are fluctuating frequently so that risk is more that s why tomato growing area decreasing day by day. 4.2.1 Trends of tomato seed sales in Coimbatore Table 4.2.1 Trends of tomato seed sales in Coimbatore Years Seed sales quantity (kg) Per cent increase Hybrid seed market (%) Open pollinated seed market (%) 2001 1400-43 57 2002 1550 10.71 52 48 2003 1725 11.29 60 40 2004 1950 13.05 69 31 2005 2180 11.79 74 26 2006 2460 12.84 80 20 2007 2750 11.78 91 9 2008 3000 9.09 100 0 2009 2800-6.66 100 0 2010 2500-10.7 100 0 35

Trends of Tomato seed sales in Coimbatore, Tamil Nadu (In quantity) 3500 Seed sales quantity (kg) 3000 2750 3000 2800 2500 2180 2460 2500 2000 1500 1400 1550 1725 1950 1000 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fig 4.2.1 Trends of Tomato seed sales in Coimbatore (In quantity) Seed sales in Coimbatore market is rapidly grown during 2001 to 2008 nearly 1400 to 3000kg afterward decreased up to 2500kg in 2010. 36

Trends of Tomato seed sales in Coimbatore, Tamil Nadu (In percentage) Percent increase 15 10 10.71 11.29 13.05 11.79 12.84 11.78 9.09 5 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-5 -10-6.66-10.7-15 Fig 4.2.2 Trends of Tomato seed sales in Coimbatore (In percentage) During 2001 to 2006 tomato sales increased and afterward it is decreased 11.79%, 9.09%, -6.66%, -10.7% in 2007, 2008, 2009, and 2010 respectively. 37

4.2.2 Proportion of hybrid and open pollinated seed Market in Coimbatore (In percentage) 120 100 91 100 100 100 80 69 74 80 60 40 57 43 52 48 60 40 20 31 26 20 0 0 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 9 Hybrid seed market (%) Open pollinated seed market (%) Fig 4.2.3 Proportion of hybrid and open pollinated seed Market in Coimbatore (in percentage) In 2001 the seed market covered by open pollinated seed57% and hybrid seed market is 43% and it was rapidly increased and reached 100% hybrid seed and open pollinated seed market disappeared from market. 38

4.2.3 Top ten tomato seed player and product in Coimbatore Table 4.2.2 Top ten tomato seed player and their product in Coimbatore Sr. No. Seed Player Tomato Product 1 US Agri seeds 618,3140 2 Nunhems 5005 3 Golden seeds 2082, 3006 4 Beejo shital seeds 908 (Priya) 5 Namdhari seeds NS- 2535 6 PHS 9005 7 Sinnova seeds Lyco-gem 8 Tanindo seeds Vijaya 9 Indus seeds Surya 10 Mahyco Research 401 4.2.4 Company-wise market of tomato seed business (In volume) Table 4.2.3 Tomato seed market by tomato seed player (In volume) Sr. No. Seed Player Market share (%) Market share(kg) 1 Nunhems Seeds 70 1750 2 Golden seeds 15 375 3 US Agri seeds 10 250 4 Namdhari seeds 1 25 5 Beejo shital 1 25 6 PHS 1 25 7 Sinnova seeds 0.5 12.5 8 Mahyco seeds 0.5 12.5 9 Tanindo seeds 0.25 6.25 10 Indus seeds 0.25 6.25 - Others 0.50 12.5 Total 100 2500 39

Tomato seed player s tomato seed market share (in percentage) 15 Tomato Seed Market share (%) 0.5 0.25 0.5 1 1 1 0.25 0.5 Nunhemps Seeds 10 Golden seeds US Agri seeds Namdhari seeds Beejo shital PHS Sinnova seeds Mahyco seeds 70 Tanindo seeds Indus seeds Others Fig 4.2.4 Tomato seed player s tomato seed market share (In percentage) Major tomato seed player in Coimbatore region are Nunhems seed with 70%, Golden seeds with 15% and US Agri seeds having 10% tomato seed sales in 2010. Nunhems seed is the market leader in tomato seed sales in Coimbatore region. 40

Tomato seed player s tomato seed market share (in quantity) 2000 Major Player of Tomato Seed Market in Coimbatore in Quantity (Kg.) 1800 1750 1600 1400 1200 1000 800 600 400 200 0 375 250 25 25 25 12.5 12.5 6.25 6.25 12.5 Fig 4.2.5 Major Player of Tomato Seed in Coimbatore in Quantity (Kg.) The major tomato seed players in Coimbatore seed market are Nunhems with 1750 kg, Golden seeds with 375kg and US Agri seeds with 250kg tomato seed sales in 2010. The Nunhems seed is the market leader in Coimbatore. 41

Table 4.2.4 Company s Tomato Seed Prices Sr. No. Company Name Hybrid Name Price/Kg 1 Nunhems seeds 5005 21000 2 Golded seeds 2082 15000 3 Us Agri seeds 618,3140 25000 4 Namdhari seeds NS-2535 26000 5 Beejo sheetal 908 priya 16000 6 PHS 9005 17000 7 Sinnova seeds Lyco-zem 25000 8 Mahyco research 401 21500 9 Tanindo Vijaya 20000 10 Indus Surya 21000 4.2.5 Company-wise market of tomato seed business (in value) Table 4.2.5 Tomato seed market shared by tomato seed player (in value) Sr. No. Company Name Hybrid Name Market share(kg) Price/Kg Sales (In lakh.) 1 Nunhems seeds 5005 1750 21000 367.5 2 US Agri seeds 618 250 25000 62.5 3 Golden seeds 2082, 3006 375 15000 56.25 4 Namdhari seeds NS-2535 25 26000 6.5 5 PHS 9005 25 17000 4.25 6 Beejo shital 908 25 16000 4.00 7 Sinnova seeds Lyco zem 12.5 25000 3.125 8 Mahyco seeds 401 12.5 21500 2.6875 9 Indus seeds Surya 6.25 21000 1.3125 10 Tanindo seeds Vijaya 6.25 20000 1.250 Others 12.5 20000 2.500 2500 511.875 42

Tomato seed player s tomato seed market share (In lakhs) 400 350 367.5 Major Player of Tomato Seed Market in Coimbatore in Value (Lakhs Rs.) 300 250 200 150 100 50 0 62.5 56.25 6.5 4.25 4 3.12 2.68 1.31 1.25 2.5 Fig 4.2.6 Major Player of Tomato Seed in Coimbatore in Value (Lakh) The Major Tomato Seed players in Coimbatore region are Nunhems seeds with 367.5 lakh, us Agri seeds with 62.5 lakh and golden seeds with 56.25 lakh. Nunhems seed is the market leader in tomato seed in Coimbatore region in 2010. 43

Tomato seed player s market share in value (in percentage) Market share value of tomato seeds (%) 0.61 0.78 0.83 1.26 0.52 0.25 0.24 0.48 Nunhemps seeds US Agri seeds Golden seeds 10.98 Namdhari seeds PHS 12.21 Beejo shital Sinnova seeds Mahyco seeds 71.79 Indus seeds Tanindo seeds others Fig 4.2.7 Tomato seed player s market share in value (In percentage) The major tomato seed players in Coimbatore region are Nunhems seeds with 71.79%, US agri seeds with 12.21% and golden seeds with 10.98%. Nunhems seeds is the market leader in tomato seed in Coimbatore region in 2010. 44

4.2.6 Tomato sowing area under Coimbatore in hectare Total seed =2500 kg Direct selling to farmer 100 %.010kg contains in =1 packet 1 kg contains in=1/.010 packet 2500 kg contains =1/.010x2500=250000 packet 10 packet required for =1 hectare 1 packet required for =1/10 hectare 250000 packet required for =1/10x250000=25000 hectare Total area in hectare=25000 hectare 45

4.2.7 Competititor s SWOT Analysis Strength:- Dealers meeting. Farmers meeting. Supply immediately. Seed sample free. Cash discount. Literature, field trial and samples Broachers and posters. Credit period (60-90) Weakness:- Irregular supply. Avoiding stock return. Poor response against complaints. No demand creation. Higher price. Opportunity:- Contract farming with consortium with various firms. Govt. supporting to value addition so that may be tomato sowing will increase. Return on investment quickly gain. To get 2-3 crops in one field so that crop grossed area increase and getting more crops in same time. Tamil Nadu has IICPT, TANJAWER and CFTRI, MASSEUR nearer to Tamil Nadu so that tomato value 46

addition possibilities is more that s why growing area will increase. Threat:- Day by day tomato growing area decrease due to seasonal reasons and unavailability labour because labour engages in NREGA Program me. More water requirement. More cost of production. Less land holding capacity for cultivation. More or we can say more infestation or attacked by insect and pest and desiese. Tomato price are very quick fluctuate so that risk is more that why tomato growing area decreasing day by day. 4.2.8 Golden Seeds Company s SWOT Analysis Strength: Weakness:- Cash discount. Expired stock return. Field day organize. Credit period. Gold coin schemes. Quality seeds. Reasonable price. All crop seeds available. Irregular supply. Not proper field work. 47

Opportunity Germination % is less nearly 40 % of 3006 variety. Supply not on time and immediately. No proper acid treatment. Lacking to tolerance in majors diseases. No. of seed/packet is lesser. Company have good image in market so that company can introduce contract farming with consortium with processor, financer and to give to assured price to farmer than farmer automatically growing tomato. Launching new variety suitable for processing. Integrated business group is there so distribution channel is very sound and to develop trust in farmer and consumers. Threat Day by day tomato growing area decrease due to seasonal reasons and unavailability labour because labour engages in NREGA Program me. More water requirement. More cost of production. Less land holding capacity for cultivation. More or we can say more infestation or attacked by insect and pest and diseases. Tomato price are very quick fluctuate so that risk is more that why tomato growing area decreasing day by day. 48

4.2.9 Distribution channel of tomato seed in Coimbatore In Coimbatore market two types distribution channel is working for seed marketing and sales of tomato seed. In Coimbatore nursery raising system is not working. Distributer and preferred dealer working for seed distribution of tomato. 1. Distributor:- In distributer system 2 channel working:- Distributer Dealer Farmer Distributer Dealer Retailer Farmer 2. Preferred Dealer:- In Preferred Dealer system 2 channel working:- Preferred Dealer Retailer Farmer Preferred Dealer Farmer 49

POTENTIAL OF TOMATO AND CABBAGE SEED BUSINESS IN HUBLI-DHARWAR (KARNATAKA)

4.3 Potential of Tomato and cabbage seed business in Hubli, Karnataka In Hubli area the tomato growing area is decreasing and sugarcane growing area is increasing as well as cabbage sowing area also slightly increasing. Tomato sowing area as well as tomato production increasing due to unavailability of labour, price fluctuation, disease and pest attack on tomato, nature of product is perishable, market is so far, food processing industries facilities not available and tomato contract farming system is not there. 4.3.1 Trends of tomato seed sales in Hubli Table 4.3.1 Trends of tomato seed sales in Hubli Years Seed sales quantity (kg) Per cent increase Hybrid seed market (%) Open pollinated seed market (%) 2001 3205 0 2 98 2002 3410 6.39 4 96 2003 3720 9.09 5 95 2004 4040 8.60 5 95 2005 4220 4.45 7 93 2006 4520 7.10 9 91 2007 4610 1.99 11 89 2008 4460-3.25 13 87 2009 4265-4.37 18 82 2010 4050-5.04 20 80 50

Trends of Tomato seed sales in Hubli-dharwar (In quantity) Seed sales quantity (kg) 5000 4500 4000 3500 3205 3410 3720 4040 4220 4520 4610 4460 4265 4050 3000 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fig 4.3.1 Trends of Tomato seed sales in Hubli-dharwar (In quantity) Seed sales in Hubli market is rapidly grown during 2001 to 2007 nearly increased from 3205 to 4610 kg during this period. Afterward decreased up to 4050 kg in 2010. 51

Trends of Tomato seed sales in Coimbatore (In percentage) Per cent increase 10 8 6 4 6.39 9.09 8.6 4.45 7.1 2 0 1.99 0-2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-4 -6-3.25-4.37-5.04 Fig.4.3.2 Trends of Tomato seed sales in Hubli-dharwar (In percentage) During 2001 to 2007 tomato sales increased and it is in positive growth rate afterward it is decreased -3.25, -4.37, and -5.04 in the year 2008, 2009, and 2010 respectively. 52

4.3.2 Proportion of hybrid and open pollinated seed Market in Coimbatore (In percentage) 120 100 98 96 95 95 93 91 89 87 80 82 80 60 40 20 0 2 4 5 5 7 9 11 13 18 20 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Hybrid seed market (%) Open pollinated seed market (%) Fig 4.3.3 Proportion of hybrid and open pollinated seed Market in Hubli- dharwar (In percentage) In 2001 the seed market covered by open pollinated seed 98% and hybrid seed market is 2%.open pollinated seed proportion decreased and reached up to 80% in the same hybrid seed proportion increased and reached up to 20% in 2010. 53

4.3.3 Trends of cabbage seed sales in Hubli Table 4.3.2 Trends of cabbage seed sales in Hubli Years Seed sales quantity (kg) Percent increase Hybrid seed market (%) Open pollinated seed market (%) 2001 2880-13 87 2002 3070 6.59 17 83 2003 3360 9.44 23 77 2004 3640 8.33 29 71 2005 3930 7.96 34 64 2006 4230 7.63 39 61 2007 4485 6.02 45 55 2008 4710 5.16 50 50 2009 4920 4.45 52 48 2010 5100 3.65 55 45 54

Trends of Cabbage seed sales in Hubli-dharwar (In quantity) Seed sales quantity (kg) 6000 5000 4230 4485 4710 4920 5100 4000 3000 2880 3070 3360 3640 3930 2000 1000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fig 4.3.4 Trends of Cabbage seed sales in Hubli-dharwar (In quantity) Seed sales in Hubli-dharwar market is rapidly grown during 2001 to 2010. It was increase from 2880 (2001) to 5100 kg (2010). 55

Trends of cabbage seed sales in Hubli-dharwar (In percentage) 10 9.44 9 8.33 8 7.96 7.63 7 6.59 6 5 6.02 5.16 4.45 4 3.65 3 2 1 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fig 4.3.5 Trends of cabbage seed sales in Hubli-Dharwar (In percentage) During 2001 to 2003 cabbage seed sales growth rate rapidly increased. Afterward cabbage seed sales growth rate in decreasing order 8.33%, 6.02%, 3.65% in year 2004, 2007, and 2010 respectively. 56

4.3.4 Proportion of hybrid and open pollinated seed Market in Hublidharwar, Karnataka (In percentage) 100 90 80 87 83 77 71 70 60 50 40 30 20 10 13 17 23 29 64 34 61 39 55 45 50 50 48 52 55 45 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Hybrid seed market (%) Open pollinated seed market (%) Fig 4.3.6 Proportion of cabbage hybrid and open pollinated seed Market in Hubli-dharwar Karnataka (In percentage) In 2001 the cabbage seed market covered by open pollinated seed 87% and hybrid seed market is 13%. Open pollinated seed market rapidly decreased and reached up to 45% and simultaneously hybrid seed proportion increased and reached upto55%. 57

4.3.5 Top Tomato and cabbage seed player and product in Hubli Table 4.3.3 Major Tomato and cabbage seed player and product in Hubli Sr. No. Tomato player seed Tomato product Cabbage player seed Cabbage product 1 Sungro seeds S-85 Seminis seeds Saint 2 Golden seeds Suruchi,vaisnavi Golden seeds Golden -50 3 Namdhari seeds NS-2535 Sungro seeds sunny 4 Jk seeds JK Deshi Krishidhan seeds Harnil 5 Nunhemps 5005 Century seeds Centro seeds 6 Seminis seeds 516 Ankur seeds Manas 7 Vijaya seeds Chaitra,swathi Suttons seeds Bharati 8 Century seeds 285 Priya Nunhemps seeds Yash 9 Indo American Ruchi Nuziveedu seeds Meera seeds 10 US Agri seeds 618 Mahyco seeds No.14 4.3.6 Company-wise market of tomato seed business (In volume) Table 4.3.4 Tomato seed market share by seed company-wise in volume Sr. No. Tomato Seed Player Market Market share(kg) share (%) 1 Sungro seeds 40 1620 2 Golden seeds 16 648 3 Namdhari seeds 15 607.5 4 Jk seeds 10 405 5 Nunhemps seeds 4 162 6 Seminis seeds 4 162 7 Vijaya seeds 3.5 141.75 8 Century seeds 2.5 101.25 9 Indo American seeds 2 81 10 Us agr seeds 1 40.5 Others 2 81 100 % 4050 kg 58

Tomato seed player s tomato seed market share (in percentage) Tomato Market share (%) 2.5 1 Sungro seeds 3.5 2 2 Golden seeds 4 Namdhari seeds 4 40 Jk seeds Nunhemps seeds 10 Seminis seeds Vijaya seeds 15 Century seeds 16 Indo American seeds Us agr seeds Others Fig 4.3.7 Tomato seed player s tomato seed market share in Hubli- Dharwar market (In percentage) Major tomato seed player in Hubli region are sungro seed with 40%, Golden seeds with 16%, Namdhari seeds and JK seed having 10% tomato seed sales in 2010. Sungro seed is the market leader in tomato seed sales in Hublidharwar region. 59

Tomato seed player s tomato seed market share (in quantity) 1800 1600 1620 Market share(kg) 1400 1200 1000 800 648 607.5 600 400 405 200 162 162 141.7 101.2 81 40.5 81 0 Fig 4.3.8 Major Player of Tomato Seed Market in Hubli-dharwar Karnataka in Quantity (Kg.) The major tomato seed players in Hubli region seed market are sungro seed with 1620 kg, Golden seeds with 648 kg, and Namdhari seed with 607.5 and JK Seeds with 405 kg tomato seed sales in 2010. The sungro seed is the market leader in Hubli region. 60

4.3.7 Company-wise market of Cabbage seed business (In volume) Table 4.3.5 cabbage seed market share by seed company-wise in volume. Sr. No. Cabbage Seed Market share Market share(kg) Player (%) 1 Seminis seeds 50 2550 2 Golden seeds 20 1020 3 Sungro seeds 10 510 4 Krishidhan 8 408 seeds 5 Century seeds 4 204 6 Ankur seeds 3 153 7 Suttons seeds 2 102 8 Nunhemps seeds 1 51 9 Nuziveedu seeds 0.5 25.5 10 Mahyco seeds 0.5 25.5 Others 1 51 100 % 5100 kg 61

Cabbage seed player s share (In percentage) Diffrent Company's cabbage Seed Market share 1% 1% -1% 1% Seminis seeds 4% 3% 2% Golden seeds Sungro seeds 8% Krishidhan seeds Century seeds 10% 50% Ankur seeds Suttons seeds Nunhemps seeds 20% Nuziveedu seeds Mahyco seeds Others Fig 4.3.9 Cabbage seed player s Cabbage seed market share In Hubli-dharwar market (In percentage) Major Cabbage seed player in Hubli region are Seminis seed with 50%, Golden seeds with 20%, sungro seed 10% and krishidhan seed having 8% cabbage seed sales in 2010. Seminis seed is the market leader in Cabbage seed sales in Hubli-dharwar region. 62

Cabbage seed player s seed market share (In quantity) 3000 Market share(kg) 2500 2550 2000 1500 1000 1020 500 510 408 0 204 153 102 51 25.5 25.5 51 Fig 4.3.10.Major Player of Tomato Seed Market in Hubli-dharwar Karnataka in Quantity (Kg.) The major tomato seed players in Hubli region seed market are Seminis seed with 2550 kg, Golden seeds with 1020 kg, Sungro seed with 510kg and Krishidhan seeds with 408 kg tomato seed sales in 2010. The Seminis seed is the market leader in Hubli region. 63

Table 4.3.6 Company s Tomato Seed Prices Sr. No. Tomato seed player Tomato product Seed price/kg 1 Sungro seeds S-85 13000 2 Golden seeds Suruchi,Vaisnavi 12000 3 Namdhari seeds Ns-2535 27000 4 JK seeds JK deshi 15000 5 Nunhemps seeds 5005 23000 6 Seminis seeds 516 15000 7 Vijaya seeds Chaitra,swathi 14000 8 Century seeds 285 Priya 22000 9 Indo American seeds Ruchi 12000 10 US Agri seeds 618 25000 Other 15000 Table 4.3.7 Company s Cabbage Seed Prices Sr. No. Cabbage seed player Cabbage product Seed price/kg 1 Seminis seeds Saint 12500 2 Golden seeds Golden-50 12000 3 Sungro seeds Sunny 12000 4 Krishidhan seeds Harnil 15000 5 Century seeds Centro 14500 6 Ankur seeds Manas 12000 7 Suttons seeds Bharati 12500 8 Nunhemps seeds Yash 11000 9 Nuziveedu seeds Meera 13000 10 Mahyco seeds No.14 12000 othres 12500 64

4.3.8 Company-wise market of tomato seed business (In value) Table 4.3.8 Tomato seed market share by seed company-wise in value S. No. Company Name 1 Sungro seeds Hybrid Name Market share (kg) Price/ Kg Sales (in lakh.) Market value (%) S-85 1620 13000 210.6 32.45 2 Namdhari seeds 3 Golden seeds Utsav-2535 607.50 27000 164.025 25.28 Suruchi,vaisnavi 648 12000 77.76 11.98 4 JK seeds JK Deshi 405 15000 60.75 9.36 5 Nunhems seeds 5005 162 23000 37.26 5.74 6 Seminis seeds 7 Century seeds 8 Vijaya seeds 9 US Agri seeds 10 Indo American seeds 516 162 15000 24.30 3.74 285 (priya) 101.25 22000 22.275 3.43 Chaitra,swathi 141.75 14000 19.845 3.05 618 40.5 25000 10.125 1.56 Ruchi 81 12000 9.720 1.49 others 81 15000 12.150 1.87 Total 4050 kg 648.810 100 % 65

Tomato seed player s tomato seed market share in Hubli-dharwar, Karnataka (In lakhs) 250.00 Market share of different companies in the sales of tomato seeds (in lakhs) 210.60 200.00 164.03 150.00 100.00 77.76 60.75 50.00 0.00 37.26 24.30 22.28 19.85 10.13 9.72 12.15 Fig 4.3.11 Major Player of Tomato Seed Market in Hubli-dharwar In Value (Lakhs Rs.) The Major Tomato Seed players in Hubli-dharwar region are Sungro seeds with 210.60 lakh; Namdhari seeds with164.03 lakh, Golden seeds with 77.76 lakh and JK Seeds with 60.75 lakh. Sungro seeds is the market leader in tomato seed in Hubli-dharwar region in 2010. 66

Tomato seed player s tomato seed market share in value (in percentage) Market value of tomato seed (%) Sungro seeds 9.36 5.74 3.74 Namdhari seeds 11.98 25.28 3.43 3.05 1.56 1.49 1.87 32.45 Golden seeds Jk seeds Nunhemps seeds Seminis seeds Century seeds Vijaya seeds Us agri seeds Indo American seeds others Fig 4.3.12 Tomato seed player s tomato seed market share in value (In percentage) The major tomato seed players in Hubli-dharwar region are Sungro seeds with 32.45%, Namdhari seeds with 25.28%, Golden seeds with 11.98% and JK Seeds with 9.36. Sungro seeds is the market leader in tomato seed in Hublidharwar region in 2010. 67

4.3.8 Company-wise cabbage seed business (in value) Table 4.3.9 Cabbage seed market share by seed company-wise in value Sr. No. Company Name Hybrid Name Market share(kg) Price/ Kg Sales (in lakh.) Market value (%) 1 Seminis seeds Saint 2550 12500 318.75 49.60 2 Golden seeds Golden- 1020 12000 122.40 19.04 50 3 Sungro seeds Sunny 510 12000 61.20 9.52 3 Krishidhan seeds Harnil 408 15000 61.20 9.52 4 Century seeds Centro 204 14500 29.58 4.60 5 Ankur seeds Manas 153 12000 18.36 2.85 6 Suttons seeds Bharati 102 12500 12.75 1.98 7 Nunhemps Yash 51 11000 5.61 0.87 seeds 8 Nuziveedu seeds Meera 25.5 13000 3.315 0.51 9 Mahyco seeds No.14 25.5 12000 3.060 0.47 others 51 12500 6.375 0.99 5100 kg 642.60 100 % 68

Cabbage seed player s cabbage seed market share in Hubli-dharwar, Karnataka (In lakhs) 350 300 318.75 Cabbage seed sales (in lakhs) 250 200 150 122.4 100 61.2 61.2 50 0 29.58 18.36 12.75 5.61 3.315 3.06 6.375 Fig 4.3.13 Major Player of cabbage Seed Market in Hubli-dharwar in Value (Lakhs Rs.) The Major Tomato Seed players in Hubli-dharwar region are Seminis seeds with 318.75 lakh; golden seeds with 122.4 lakh, sungro seeds with 61.2 lakh and krishidhan seeds with 61.2 lakh. Seminis seeds is the market leader in cabbage seed in Hubli-dharwar region in 2010. 69

Cabbage seed player s Cabbage seed market share in value (in percentage) Market share of cabbage seed players (%) 0.87 0.51 0.47 1.98 2.85 0.99 Seminis seeds Golden seeds 9.52 4.6 Sungro seeds Krishidhan seeds Century seeds 9.52 49.6 Ankur seeds Suttons seeds Nunhemps seeds Nuziveedu seeds 19.04 Mahyco seeds others Fig 4.3.14 Cabbage seed player s Cabbage seed market share in value (In percentage) The major Cabbage seed players in Hubli-dharwar region are Seminis seeds with 49.6%, Golden seeds with 19.04%, Sungro seeds with 9.52% and Krishidhan Seeds with 9.52. Seminis seeds is the market leader in Cabbage seed in Hubli-dharwar region in 2010. 70

4.3.10 Tomato and cabbage sowing area under Hubli in hectare Total seed =4050 kg Direct selling to farmer 100 %.010kg contains in =1 packet 1 kg contains in=1/.010 packet 4050 kg contains =1/.010x4050=40500 packet 10 packet required for =1 hectare 1 packet required for =1/10 hectare 405000 packet required for =1/10x405000=40500 hectare Total area in hectare=40500 hectare Cabbage sowing area under Hubli in hectare Total seed =5100 kg Direct selling to farmer 100 %.010kg contains in =1 packet 1 kg contains in=1/.010 packet 5100 kg contains =1/.010x5100=510000 packet 50 packet required for =1 hectare 1 packet required for =1/50 hectare 510000 packet required for =1/50x510000=10200 hectare Total area in hectare=10200 hectare under cabbage growing area in Hubli region. 71

4.3.11 Competititor s Swot Analysis Strength:- Cash discount. Credit period (30 to 90 days). Expired stock return. Promotional schemes. Competitive price. Field demo and visits. Weakness:- Timely not return. Supply constraints. Team action not properly in supply and return. Account not clear. Ignoring to complaints. Frequently seed price fluctuation. Opportunity:- Contract farming consortium possible. Cold storage facility can increase so that tomato and cabbage growing area will increase. Threat:- Labour constraints. Germination problems so that more seed required so that cost of production increases. Tomato fruit keeping quality is less because tomato is a perishable nature vegetable. 72

4.3.12 Golden Seeds Company s Swot Analysis Strength:- cash discount 5%. Expired stock return. Schemes. Credit period 30 to 90 days. Field demo and visit. Farmer gifts. Attractive schemes. Return specialty including expiry. Campaigning and posters. Weakness:- Expired stock reevaluation delaying up to that season gone. No expired return facility. Irregularity in field work. Germinations problem. Keeping quality. Improper field visits. Seed price high. Less incentives. Very large area for a field assistant. Farmer complaints. Farmers not awarded. Less field work. 73

Opportunity:- Vegetable processing increasing so that market increases. Goa is very nearer so that value added product demand can create. Contract farming consortium possible. Cold storage facility can increase so that tomato and cabbage growing area will increase. Threat:- Less water availability so that tomato area is increasing. Tomato price fluctuation is more. Labour constraints. Germination problems so that more seed required so that cost of production increases. Tomato fruit keeping quality is less because tomato is a perishable nature vegetable. Metro market so for so that transportation charges also a Burdon and also time consuming. Slightly sugarcane replaced to the vegetable farming. 74

4.3.13 Distribution channel of tomato and cabbage seed in Hubli market In Hubli region two types distribution channel is working for seed marketing and sales of tomato seed. In this region nursery raising system is working. Farmer growing nursery own self not for sell at commercial level. They used to raise nursery and transplant their own field. Distributer and preferred dealer working for seed distribution of tomato. 1. Distributor: In distributer system 2 channel working:- Distributer Dealer Farmer Distributer Dealer Retailer Farmer 3. Preferred Dealer:- In Preferred Dealer system 2 channel working:- Preferred Dealer Retailer Farmer Preferred Dealer Farmer 75

POTENTIAL OF BABY CORN SEED BUSINESS IN BANGALORE (KARNATAKA)

4.4 Potential of Baby corn seed business in Bangalore Baby corn is the pre-mature harvested product that is used as a raw or vegetable purpose. In Bangalore as a like metro city have a good market for baby corn and market increasing day-by-day because fast life needs fast food due to lack of time with nutrional element so that baby corn is the best option. Besides Bangalore other metro city will increase the baby corn consumption like Hyderabad, Goa, Mumbai, Pune, Chennai, etc. 4.4.1 Trends of Baby corn seed sales in Bangalore Table 4.4.1 Trends of Baby corn seed sales in Bangalore Years Seed sales quantity (kg) Percentage increase Hybrid seed market (%) Open pollinated seed market (%) 2005 250 - - 100 2006 310 24-100 2007 400 29.03-100 2008 530 32.5-100 2009 710 33.96-100 2010 1000 40.84-100 76

Trends of baby corn seed sales in Bangalore Karnataka (In quantity) 1200 Seed sales quantity (kg) 1000 1000 800 710 600 530 400 250 310 400 200 0 2005 2006 2007 2008 2009 2010 Fig 4.4.1 Trends of baby corn seed sales in Bangalore (In quantity) Seed sales in Bangalore market is rapidly increased in 2005 to 2010. It increased from 250 kg (2005) to 1000 kg (2010). 77

Trends of baby corn seed sales in Bangalore, Karnataka (In percentage) 45 40 Per cent increase 40.84 35 32.5 33.96 30 29.03 25 24 20 15 10 5 0 0 2005 2006 2007 2008 2009 2010 Fig 4.4.2 Trends of baby corn seed sales in Bangalore, Karnataka (In percentage) During 2005 to 2010 baby corn sales increased 24%, 29.03%, 32.5%, 33.96% and 40.34% in 2006, 2007, 2008, 2009 and 2010 respectively. 78

4.4.2 Major baby corn seed player Table 4.4.2 Major baby corn seed player Sr. No. Seed Player Baby corn Product 1 Golden seeds Golden honey 2 Syngenta seeds 5417,5414,5406 3 CP Seeds 320 4.4.3 Company-wise market of baby corn seed business (In volume) Table 4.4.3 Baby corn seed market share by seed Company-wise in volume Sr. No. Seed Player Market share Market share(kg) (%) 1 Golden seeds 70 700 2 Syngenta seeds 27 270 3 CP Seeds 1 10 others 2 20 Total 100 1000 79

Baby corn seed player s baby corn seed market share (In percentage) 1 Market share (%) 2 27 Golden seeds Syngenta seeds Cp seeds 70 others Fig 4.4.3 Baby corn seed player s baby corn seed market share In Bangalore market (In percentage) Major baby corn seed player in Bangalore region are Golden seed with 70%, Syngenta India with 27%, CP Seeds with 1% sales in 2010. Golden seed is the market leader in baby corn seed sales in Bangalore region. 80

Baby corn seed player s baby corn seed market share (in quantity) 800 Market share(kg) 700 700 600 500 400 300 270 200 100 0 Golden seeds Syngenta seeds Cp seeds others 10 20 Fig 4.4.4 Major baby corn Seed Player in baby corn Seed Market in Bangalore, Karnataka in Quantity (Kg.) The major baby corn seed players in Bangalore region seed market are golden seeds with 700 kg, Syngenta India with 270kg, and CP Seeds with 10kg seed sales in 2010. The golden seeds is the market leader in Bangalore region. 81

Table 4.4.4 Company s babycorn Seed Prices Sr. Company Name Hybrid Name Price/Kg No. 1 Golden seeds Golden honey 200 2 Syngenta seeds 5417, 5414, 5406 280 3 CP Seeds 320 200 Others Others 250 4.4.4 Company-wise market of baby corn seed business (In value) Table 4.4.5 seed market share by seed company-wise in value Sr. No. Company Name Hybrid Name Market share (kg) Price /Kg Sales (in Rs.) Market value (%) 1 Golden Golden honey 700 200 140000 62.89 seeds 2 Syngenta 5417,5414, 270 280 75600 33.96 seeds 5406 3 CP Seeds 320 10 200 2000 0.89 4 Others - 20 250 5000 2.24 1000 Kg 222600 100 82

Baby corn seed player s Baby corn seed market share in Bangalore, Karnataka (In lakhs) 160000 140000 140000 Sales (in Rs.) 120000 100000 80000 75600 60000 40000 20000 0 2000 5000 Golden seeds Syngenta seeds Cp seeds Others Fig 4.4.5 Major Player of Baby corn Seed Market in Bangalore in Value (Lakhs Rs.) The Major Baby corn Seed players in Bangalore region are Golden seeds with 1.4 lakh, Syngenta seeds with.75 lakh, CP Seeds with.02 lakh and others Seed with.05 lakh. Golden seeds is the market leader in Baby corn seed in Bangalore region in 2010. 83

Baby corn seed player s babycorn seed market share in value (In percentage) babycorn seed Market value in bangalore region (%) 0.89 2.24 Golden seeds 33.96 Syngenta seeds Cp seeds 62.89 Others Fig 4.4.6 Baby corn seed player s Baby corn seed market share In value (In percentage) The major Baby corn seed players in Bangalore region are golden seeds with 62.89%, Syngenta India with 33.96%, CP Seeds with 0.89% and others seeds with 2.24 in 2010. Golden seeds is the market leader in Baby corn seed in region in 2010. 84

4.4.5 Baby corn seed sowing area under Bangalore (In hectare) Total seed =1000 kg Farmer getting seed through only one ways:- Direct selling to farmer 100 % 20 kg seed used to sowing in =1 hectare 1 kg seed used to sowing in= 1/20 1000 kg seed used to sowing in= 1/20x1000 =50 hectare Total baby corn seed sowing area is 50 hectare 85

4.4.6 Competitor SWOT Analysis Strength: Syngenta and CP Seeds are in baby corn seed business and they are major seed player. Baby corn market for vegetable is Hyderabad and Bangalore metro cities for that companies also having their headquarter in these cities so that marketing and distribution is easily possible. Big companies having already a strong distribution network for marketing and selling to baby corn seed. Weakness: In market every company having 1 or 2 product. Companies investing very less on baby corn seed business. Research and development not developed. Market is less so those companies are not focusing on baby corn seed. Opportunity: This market is emerging market so that first entry and get benefit first. Big player have sound r and department they can do work on baby corn improvement. In metro cities it is becoming popular so that they can raps the opportunity by the help of their distribution channel. Value addition work can possible. Threat: Baby corn marketing becoming competitive. New companies coming in market so that market can divide. 86

4.4.7 UPL (Golden Seeds) SWOT Analysis Strength: Golden seeds having good R & D. Sound and strong distribution channel. Zonal offices located at metro cities all-around India so that operating and controlling is easy. Golden seeds entered first in baby corn seed business so that company has good market image as well as identities. Golden seeds is a one of the company in UPL group of companies so promotional activities, marketing and distribution is very easy. Weakness: Golden seeds having only one variety. R & D work still not running well. Timely seed not available. Seasonal variety is not available. Market polarized surrounding the Bangalore. Opportunity: Golden seeds can do collaboration with IIHR, Hasergatta and university of agricultural science, Bangalore for R&D project on baby corn. Company should take consulting services from IIMs for better market and potential market search. Company should organize work-shop, seminar on baby corn seed as well as baby corn vegetable importance in life so that baby corn seed market demand can create and sales increase. 87

Company should launch reason and season wise variety. Better marketing and selling is possible with the help of company s zonal offices, regional offices all over India. Threat: Threat of new entrant. Govt. rules, regulations and policies. Consumer choices. 88

4.4.8 Distribution channel of baby corn seed in Bangalore market In Hubli region two types distribution channel is working for seed marketing and sales of tomato seed. In this region nursery raising system is working. Farmer growing nursery own self not for sell at commercial level. They used to raise nursery and transplant their own field. Distributer and preferred dealer working for seed distribution of tomato. 1. Distributor:- In distributer system 2 channel working:- Distributer Dealer Farmer Distributer Dealer Retailer Farmer 2. Preferred Dealer:- In Preferred Dealer system 2 channel working:- Preferred Dealer Retailer Farmer Preferred Dealer Farmer 89

4.5 Result and Findings Changing Scenario of Vegetable Seed Business in South India The data were collected from Madanapalle (Andhra Pradesh), Coimbatore (Tamilnadu), Hubli-Dharwar and Bangalore (Karnataka) during February 15 th to April 15 th 2010. The major analytical tools employed for the project were tabular analysis, pie-chart and bar graph. 4.5.1 Madanapalle, Andhra Pradesh 1. Madanapalle, (Andhra Pradesh) tomato seed market was 1000 Kg in 1990 with 100% open pollinated seeds and increased up to 10000 in 2010 wit1000%. 2. Total tomato seed market size is 10000 kg in volume and 1819.5 lakh in value in 2009-2010. 3. Nunhems seeds having 30% market with 3000 Kg volume and 32.97% market with 600 lakh in value, US Agri seeds having 26% market with 2600 Kg and 35.72% with 650 lakh in value, PHS having 24% market With 2400 Kg in volume and 9.89% market with 180 lakh in value. Syngenta seeds having same market in value-wise as like PHS but in volume wise market is 3% with 300 kg seed and golden seeds having 10% market with 1000 Kg seeds in volume and 6.59% market with 120 lakh in value. 4. These five having 93% with 9300 Kg and 95.06% market 1730 lakh in value. 5. In this region varieties are 3140,618 (US Agri Seed), 5005 (Nunhems Seeds), 9005 (PHS), Abhinav (Syngenta) and 2082 (Golden Seeds). 6. Total sowing area in this region is 310000 hectare. 7. Distribution channel distributers and preferred dealer distribute to the seed 90% to nurseryman and 10% direct to farmers 90

4.5.2 Coimbatore, Tamil Nadu 1. The Coimbatore region total market 2500 Kg in volume and 511.8 lakh in value. 2. Nunhems seeds have 70% with 1750 Kg in volume and 71.79% with 367.50 lakh in value, Golden Seeds having 15% with 375 Kg in volume and 10.98% with 56.25 lakh in value, US Agri having 10% with 250 Kg in volume and 12.21% with 62.50 lakh in value. 3. These three varieties covers 95% market with 2375 Kg and 94.98% market in value-wise 486.25 lakh. 4. In this area 5005 (Nunhems Seeds), 2082, 3006 (Golden Seeds) and 618 (US Agri Seed) are very preferred varieties by farmer for sowing. 5. Total tomato sowing area is 25000 hectare. 6. Distribution channel is through distributer and preferred dealer to farmer. Nurseryman is not working. 4.5.3 Hubli Dharwar, Karnataka 1. Hubli-Dharwar region total tomato seeds market is 4050 kg for tomato with 648.81 lakh in value. 2. Sungro seeds having 40% with 1620 kg in volume and 32.45% with 210.60 lakh in value, Golden Seeds having 16% with 648 Kg in volume and 11.98% with 77.76 lakh in value, Namdhari seeds having 15% with 647.50 Kg in volume and 25.28% with 164.025 lakh in value, JK Seeds having 10% with 405 Kg in volume and 9.36% with 60.75 lakh in value. 3. Sungro seeds, Golden seeds, Namdhari seeds and JK seeds having 81% market with 2280.5 Kg in volume and 79.07% market with 513.1 lakh in value 4. Total Cabbage Seed market 5100 Kg with 642.60 lakh. 91

5. Seminis Seeds having 50% with 2550 Kg in volume and 49.60% market with 318.75 lakh in value, Golden Seeds having 20% market with 1020 Kg in volume and 19.04 with 122.400 lakh in value, Sungro Seeds having 10% market with 510 Kg in volume and 9.52% market having with 61.20 lakh in value, krishidhan seeds having 8% market with 408 Kg in volume and 9.52% market with 61.20 lakh in value. 6. Seminis seeds, Golden seeds, Sungro seeds and Krishidhan seeds having 88% market with 4488 Kg in volume and 87.68% market with 563.55 lakh in value. 7. In this area most preferred tomato varieties for sowing are S-85 (Sungro seed), Utsav (Namdhari Seeds ), Suruchi ( Golden Seed), JK Deshi (JK Deshi) and most preferred cabbage varieties are Saint (Seminis Seed), Golden-50 (Golden Seed), Sunny (Sungro seed), and Harnil (Krishidhan). 8. Total Tomato and cabbage sowing area are 40500 and 102000 hectare respectively. 9. Distribution channel is working by distributer, preferred dealer and dealer. 4.5.4 Bangalore Karnataka 1. Bangalore, (Karnataka) baby corn seed sales in Bangalore market is rapidly increased in 2005 to 2010. It increased from 250 kg (2005) to 1000 kg (2010). During 2005 to 2010 baby corn sales increased 24%, 29.03%, 32.5%, 33.96% and 40.34% in 2006, 2007, 2008, 2009 and 2010 respectively. 2. Major baby corn seed player are (in volume in percentage) Golden seed with 70%, Syngenta India with 27%, CP Seeds with 1% sales. 92

3. Major baby corn seed player are (in volume in quantities) golden seeds with 700 kg, Syngenta India with 270kg, and CP Seeds with 10kg seed sales in 2010. The golden seeds is the market leader in Bangalore region. 4. The Major Baby corn Seed players in Bangalore region are (in value in lakh) Golden seeds with 1.4 lakh, Syngenta seeds with.75 lakh, CP Seeds with.02 lakh and others Seed with.05 lakh. 5. The Major Baby corn Seed players in Bangalore region are (value in percentage) golden seeds with 62.89%, Syngenta India with 33.96%, CP Seeds with 0.89% and others seeds with 2.24 in 2010. Golden seeds is the market leader in Baby corn seed in region in 2010. 6. Baby corn seed sowing area is 50 hectare. 93

V

V. SUMMARY AND CONCLUSION The project entitled Changing scenario of vegetable seed business in south India was undertaken through primary market survey. The data were collected from Madanapalle (Andhra Pradesh), Coimbatore (Tamilnadu), Hubli-Dharwar and Bangalore (Karnataka) during February 15 th to April 15 th 2010. The major analytical tools employed for the project were tabular analysis, pie-chart and bar graph. The project revealed that in Madanapalle, (Andhra Pradesh) tomato seed market was 1000 Kg in 1990 with 100% open pollinated seeds and increased up to 10000 in 2010 with 1000%. Total tomato seed market size is 10000 kg in volume and 1819.5 lakh in value in 2009-2010. Out of this Nunhems seeds having 30% market with 3000 Kg volume and 32.97% market with 600 lakh in value, US Agri seeds having 26% market with 2600 Kg and 35.72% with 650 lakh in value, PHS having 24% market With 2400 Kg in volume and 9.89% market with 180 lakh in value. Syngenta seeds having same market in value-wise as like PHS but in volume wise market is 3% with 300 kg seed and golden seeds having 10% market with 1000 Kg seeds in volume and 6.59% market with 120 lakh in value. These five having 93% with 9300 Kg and 95.06% market 1730 lakh in value. In this region varieties are 3140,618 (US Agri Seed), 5005 (Nunhems Seeds), 9005 (PHS), Abhinav (Syngenta) and 2082 (Golden Seeds). Total sowing area in this region is 310000 hectare. For distribution channel distributers and preferred dealer distribute to the seed 90% to nurseryman and 10% direct to farmers. The Coimbatore region total market 2500 Kg in volume and 511.8 lakh in value, out of them Nunhems seeds having 70% with 1750 Kg in volume and 94

71.79% with 367.50 lakh in value, Golden Seeds having 15% with 375 Kg in volume and 10.98% with 56.25 lakh in value, US Agri having 10% with 250 Kg in volume and 12.21% with 62.50 lakh in value. These varieties covers 95% market with 2375 Kg and 94.98% market in value-wise 486.25 lakh. In this area 5005 (Nunhems Seeds), 2082, 3006 (Golden Seeds) and 618 (US Agri Seed) are very preferred varieties by farmer for sowing. Total tomato sowing area is 25000 hectare. Distribution channel is through distributer and preferred dealer to farmer. Nurseryman is not working. In Hubli-Dharwar region total tomato seeds market is 4050 kg for tomato with 648.81 lakh in value. Out of them sungro seeds having 40% with 1620 kg in volume and 32.45% with 210.60 lakh in value, Golden Seeds having 16% with 648 Kg in volume and 11.98% with 77.76 lakh in value, Namdhari seeds having 15% with 647.50 Kg in volume and 25.28% with 164.025 lakh in value, JK Seeds having 10% with 405 Kg in volume and 9.36% with 60.75 lakh in value. These four having 81% market with 2280.5 Kg in volume and 79.07% market with 513.1 lakh in value. Total Cabbage Seed market 5100 Kg with 642.60 lakh. Out of them Seminis Seeds having 50% with 2550 Kg in volume and 49.60% market with 318.75 lakh in value, Golden Seeds having 20% market with 1020 Kg in volume and 19.04 with 122.400 lakh in value, Sungro Seeds having 10% market with 510 Kg in volume and 9.52% market having with 61.20 lakh in value, krishidhan seeds having 8% market with 408 Kg in volume and 9.52% market with 61.20 lakh in value. These four having 88% market with 4488 Kg in volume and 87.68% market with 563.55 lakh in value. In this area most preferred tomato varieties for sowing are S-85 (Sungro seed), Utsav (Namdhari Seeds ), Suruchi ( Golden Seed), JK Deshi (JK Deshi) and most preferred cabbage varieties are Saint (Seminis Seed), 95

Golden-50 (Golden Seed), Sunny (Sungro seed), and Harnil (Krishidhan). Total Tomato and cabbage sowing area are 40500 and 102000 hectare respectively. Distribution channel is working by distributer, preferred dealer and dealer. Bangalore, (Karnataka) baby corn seed sales in Bangalore market is rapidly increased in 2005 to 2010. It increased from 250 kg (2005) to 1000 kg (2010). Major baby corn seed player are (in volume in percentage) Golden seed with 70%, Syngenta India with 27%, CP Seeds with 1% sales. The Major Baby corn Seed players in Bangalore region are (value in percentage) golden seeds with 62.89%, Syngenta India with 33.96%, CP Seeds with 0.89% and others seeds with 2.24 in 2010. Golden seeds is the market leader in Baby corn seed in region in 2010.Baby corn seed sowing area is 50 hectare. Recommendations UPL (Golden seeds) have good market image so that we have to increasing the market share in volume as well as value and we have to take some steps-: Re-evaluation period should be short so that distributer can keep stock all over year for sale as par season and region. To create more and more market demand through doing field demo, distribute free sample, literature, sales incentives, sales schemes,to organize promotional events, by sponsoring the social gathering events specially farmer fair, local fair etc. Germination percentage should be increase so that seed viability be high because seed are so costly. Maintain keeping quality of tomato fruit because tomato is a perishable nature fruit. 96

Schemes should be on the basis of sales and promotional schemes for increase sales through distributer and dealer. To give more credit period to distributer and farmer. Acid seed treatment should be compulsory so that disease and pest infestation occurs less and seed viability will be high. Regular and timely seed supply to the distributer is very essential. So keeping in mind supply should be regular. To take quick actions on the feedback or complaints or suggestions given by distributers. Field assistant should be regular contact with distributer and farmer so that trust can develop. Award and Reward should be give to distributer/dealer for selling more quantity seed sales. Supply should be match perfectly with demand timely. To exchange the expired stock with fresh stock so that distributer keeps always stocks. Seed packaging should be attractive and with full information leaflet. Field worker should be locally and trained and skilful by providing training and updating to them. Time to time take survey from market and to find out market situation, market demand and changing trends. And as per market expectation we have to take step. Account should be clears of distributer and dealer. Co-ordination should be between the Marketing and sales department so that demand creation and supply should be match. 97

REFERENCES Aggrawal, R. L. (1998). Seed Technology, IBH Publication, New Delhi. Gupta, S. P. (1997). Statistical Methods, Sultan Chand and Sons, New Delhi. Kothari, C. R. (1990). Research Methodology (Methods and Techniques), Wishwa Prakashan, New Delhi. Swarp, (2007). Indian Seed Industry: Need of Second Green Revolution, Agriculture Today, pp. 28-30. http://www.agricoop.nic.in, accessed on Feb, 2010 http://www.apsaseed.org, accessed on Feb, 2010 http://www.indiabudget.nic.in, accessed on March, 2010 http://www.indianagronet.com, accessed on Jan, 2010 http://www.indiaseed.com, accessed on Feb, 2010 http://www.seedassociationofindia.com, accessed on April, 2010 http://www.seednet.gov.in, accessed on April, 2010 xi