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Group 11 - Bayer Crop Science

The document discusses the Indian seed industry and Bayer Bioscience. It provides details about: 1) The size and growth of the Indian seed industry, which is the 6th largest globally and growing at 12-13% annually in India. Hybrid seeds account for 66.2% of field crop usage. 2) An overview of Bayer Bioscience in India, which is a market leader in hybrid rice and pearl millet. It has extensive research, production, and sales networks across the country. 3) Bayer's strategic objectives to achieve sustainable profitability through innovation, efficiency, and talent development, addressing global food challenges through responsible business practices.

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340 views18 pages

Group 11 - Bayer Crop Science

The document discusses the Indian seed industry and Bayer Bioscience. It provides details about: 1) The size and growth of the Indian seed industry, which is the 6th largest globally and growing at 12-13% annually in India. Hybrid seeds account for 66.2% of field crop usage. 2) An overview of Bayer Bioscience in India, which is a market leader in hybrid rice and pearl millet. It has extensive research, production, and sales networks across the country. 3) Bayer's strategic objectives to achieve sustainable profitability through innovation, efficiency, and talent development, addressing global food challenges through responsible business practices.

Uploaded by

vanshsandeepsaini
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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GROUP-11

SACHIN KUMAR
SANDEEP SAINI
SANDEEP SINGH
SANGEETA CHAUHAN
SANJAY KUMAR
SANKET BELGUDRI
Indian Seed Industry

Indian seed industry is 6th largest in the world.

Turnover worldwide Rs. 1,36,000 cr. ($34b)

Turnover in India Rs. 6000 cr. ($1300 m)

Growing @ 12-13% in India & 5% in world.

 Indian contribution is 4-5% of global industry.

Usage pattern : 66.2% hybrids, 22.3% OPV of field crops &

11.5% OPV of vegetable seeds


External environment analysis of Indian Seed Industry
Political:
 National seeds policy
 Assistance for boosting seed production in private
Sector. 222 such plants have been sanctioned for
an amount of Rs. 14.86 crore for small
entrepreneurs in 16 states, with a processing
capacity of 42.94 lakh quintals of seed and a
storage capacity of 16.68 lakh quintals
 National Commission on Farmers.

 NGOs such as Green Peace opposing GM seeds.


Economic:
 Inflation
 Interest rate
 Policy on the Export and Import of Seeds and Planting
Materials: Exports and imports of seeds have increased with the
rationalization and simplification of the export and import regime.
Social:
 Seed Village Scheme
 Central Government approved the Protection of Plant Varieties and
Farmers‘ Rights (Criteria for Distinctiveness, Uniformity, Stability and
Registration) Regulations, 2009.
 Educated farmers are more inclined towards adoption of technological
advancements such as hybrids and GM crops.
 Small and marginal farmers use more of hybrid seeds as they have
small land holdings from which they want to reap higher profits.
….contd.

Technology:
 During 2009-10, Rs. 4.64 crore has been released for the general
upgrading of laboratories and State Seed Certification Agencies,
equipping laboratories for International Seed Testing Association (ISTA)
accreditation, DNA fingerprinting, BT cotton kits, grow-out tests, etc.
 Technology incentives National Training Programme during 2009-2010
on 'Seed Quality Regulation', 'Seed Testing', 'Seed Law Seeds
Enforcement', 'Integrated Seed Improvement‘ , 'Seed Health Testing',
and 'Varietal Purity Testing for Specified Traits and Pre and Post-Harvest
Management Techniques for Seed Quality Assurance‘.
 Bt. Cotton Seeds: At present, 624 Bt Cotton hybrids, including one
variety, BN Bt cotton, developed by the Central Institute for Cotton
Research, Nagpur (ICAR) have been approved by the Genetic
Engineering Approval Committee (GEAC)
….contd.

Ecological:
  Seed inspectors been provided with powers of enforcement
under the Environment(Protection) Act, 1986 to regulate the
quality of genetically modified (GM) crops.
 Hybrid seeds require less irrigation.
 Low fertilizer doses are required.
 Pest incidence is high in hybrid crops.
Legal:
 Strengthening of Seeds Quality Control Organisations(State Seed
Certification Agencies & State Seed Testing Laboratories): to stop
the sale of sub-standard seeds and to seize their stocks.
 Prices and black marketing of seeds should be checked and
controlled for the farmers
Porters Five Forces

Supplier power (Moderate)


 Plant breeding, including genetic research and cultivar assessment.
 Seed Production either in companies own dependences or by
Products.
 The industry is organized in public & Private entities with the
objective of roles of research, production, Quality Control and
Marketing.
Buyer power (High)
 There are a number seller available in the Indian seed market.
 Farmer who needs to input seed at low price & high Quality.
 If buyer is not satisfied with existing brand of seed so the buyer
switch over to other company’s brand.
Threat of new entrants (High)
 Research has provided new technologies.
 Special relevance of genetic engineering, essential component of
biotechnology.
 Entry barriers are low
Threat of substitution
 As such there is no substitute of seed available but there are technologies like
vegetative propagation and tissue culture are substitutions in horticulture
but agricultural seeds are out of their purview.
 For hybrid seeds, farmers carry over seeds and local inbreds can be the
substitutes.
Rivalry
 There are approximately 223 Companies engage in production of seed in
India.
Management Holding Company

Bayer AG
Board of Management

Bayer Bayer Bayer Bayer Business


HealthCare CropScience MaterialScience Services

Sales 2009: Sales 2009: Sales 2009:


€ 16.0 bn € 6.5 bn € 7.5 bn Bayer
Technology
Services

Currenta

Business Area Companies Service Companies


Crop Science

Crop protection Environmental health Bioscience


Company Profile

Chairman of the Board of Friedrich Berschauer


Management
Divisions Crop Protection
Environmental Science
BioScience
Sales EUR 6,510 million
Net Cash Flows EUR 745 million
R&D investment EUR 653 million

 VISION
To be a leading partner in providing innovative products and
combined solutions for the production of quality food, feed and fiber to
meet the global challenges of tomorrow. 
Bayer Bioscience

Products:
 Vegetable seeds (umbrella brand- NUNHEMS): Mostly all
vegetable seeds.
 Agricultural seeds:
• Global umbrella brand- ARIZE
• Hybrid cotton- Surpass
• Pearlmillet- Proagro
Current Position of Bayer Bioscience in India

Bayer BioScience, headquartered in Hyderabad


India has about 400 employees, and has research,
production and an extensive sales network spread
across the country.
It has capacity to process and package more than
200 metric tons of high - quality seed per day.
Bayer Bioscience is market leader in Hybrid rice in
India having market share of 43%
Bayer Bioscience is market leader in Hybrid pearl
millet in India having market share of 32%
Strategic objectives of Bayer

To achieve sustainable profitability by:


 Capitalizing on our strong and well-balanced portfolio with a special
focus on innovative and high-margin products .
 Optimizing efficiency in operative and administrative processes.
To leverage on active portfolio management by:
 Capitalizing on successful life cycle management
 Improving the portfolio mix
To foster industry leadership in innovation by:
 Focusing on business and technology innovation to deliver a sustainable
pipeline of new active ingredients
 Addressing needs for bio-based resources through plant biotechnology
To be the most attractive employer in our industry by:
 Identifying, retaining and developing the best talent employees
Sustainability strategy of Bayer
Corp
orat
e
Soci
al
Resp
onsi
Stakeholder
bilitthrough
satisfaction
y Business
responsible
activities

Products and innovations


Operating strategy of Bayer

Contractual COMPANY OWN


SEED COMPANY PRODUCTION SITES
agreement
Preferred distributor
DISTRIBUTOR
Credit sales
CONTRACTED SEED
GROWER

RETAILER

FARMERS
Competitive Advantage of Bayer

Bayer uses Differentiation strategy in broad segment


through:
 High value innovative products.
 Strong R&D department.
 Massive & innovative campaigning strategy.
 Good financial muscle by which Bayer can promote its product
in the market and increase its distribution channels.
 Umbrella brand strategy for every product and large product
range.
 Because of leading position in the crop protection sector in
India it has brand image in the mind of Indian farmers
Thank you

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