Kaveri Seed Company Limited
is in the service of Indian farmer for more than three decades now, with a record accomplishment of high performance products and highest quality standards, the Company takes pride in its reputation as a 100-percent Indian Company with a national presence.
Kaveri has become synonymous with premium quality seeds possessing genetically superior traits.
Kaveri has a sizable share in Indian seed market. Its product development line is full of new hybrids with high yielding potential together with tolerance to major pest and diseases.
The Company is totally dedicated for the welfare of Indian farmer by providing the best planting material. Recently the company has taken over the business of micro-nutrients and bio-products from Kaveri Agriteck, thus providing fully integrated solutions to the farmers under on roof.
GVB Rao & Company was started by Mr GV Bhaskar Rao in 1976. This small company started seed production of public varieties of corn, pearl millet and rice. An American seed MNC recognized this small but commendable effort and GVB Rao & Co was appointed as their producer-distributor.
GVB Rao & Co started its own breeding programme and introduced the first ever-proprietary private corn hybrid in South India. This corn hybrid released by the Company had an edge over the existing public varieties in terms of yield. Farmers were thrilled with the performance of this hybrid and the brand became instantly popular. Inspired by this success, G V B Rao & Co ventured in to value added breeding.
In 1986, GVB Rao & Company became Kaveri Seed Company Private Limited and further fortified its efforts in the service of farmers. It diversified in to proprietary hybrid seeds of other crops like sunflower, pearl millet, sorghum and rice. Kaveri has a very strong position in corn and sunflower with hybrids often performing better than the competitors' do.
Recently the Company has ventured into breeding and marketing of hybrid vegetable seeds.
With constant and consistent improvement in performance of hybrids and augmented with quality, naturally Kaveri has become a preferred seed brand. The popularity percolated to other parts of the country and we advanced our marketing network nationwide.
The sustenance in business and an ever improving graph of top-line and bottom-line made Kaveri a different seed company from the rest.
The Company noticed the disturbing trend in crop husbandry, the soil is deprived of its fertility and useful soil micro flora. Yields have started declining. In poor soils, the farmer is not able to harness the full potential of high yielding seeds.
Kaveri sensed the need to replenish the soils of its nutrients and micro flora and reclaim the fertility in a scientific way. For the same reason Kaveri Seeds has taken over Kaveri Agriteck, having a proven record of accomplishment and a good network to deal with micro nutrients and bio-products.
Kaveri Seeds sees FY09 PBT at Rs 47 cr
Kaveri Seed has listed at Rs 210.55, with premium of 23.85% over its offer price of Rs 170.
C Mithun, Director of Kaveri Seeds sees FY08 bottomline at Rs 20 crore and EPS at Rs 15. He expects FY09 PBT to be at Rs 47 crore.
Excerpts from CNBC-TV18's exclusive interview with C Mithun:
Q: What do you expect in terms of revenues and profits in FY08?
A: We are aiming for a topline of Rs 100 crore and bottomline around Rs 20 crore.
Q: Rs 20 crore, so you would end up at an EPS close to Rs 13 odd?
A: Close to Rs 15 per share.
Q: What kind of growth can you exhibit over FY08?
A: We are aiming at Rs 150 crore in FY08-FY09 and we are targeting around Rs 47 crore PBT.
Q: There are some concerns that you have got too much concentration in specific products and your geographical presence is also quite limited. How would you address these concerns?
A: Earlier we use to market our seeds in southern states, now we have expanded to the northern part as well and major contribution will come from the northern part in FY08-09, which will further increase in FY09-10. We were mainly concentrated on the seeds of sunflower and maze, now we are into cotton and we want to make significant market share in cotton also.
Q: Do you think your margins can be protected at the current levels over the next two years? There is quite a bit of competition from local players and multinationals in the fields that you are operating in.
A: I think it will improve further, because earlier we use to trade in high volumes and low value. Now we are trading in high value and low volume seeds and we will further increase the profitability.
Q: How would you compare yourself to a bigger player like Advanta?
A: Though we are in the same business the objective is different. Our main aim is for the Indian markets and they are looking globally. We do not compare ourselves against it as we have different markets for different players.