Maintaining its leadership position in the Bt cotton market, Nuziveedu Seeds private limited (NSPL) has emerged as a formidable player in the agribiotech sector with revenues of
745 crore in FY 2011-12. The reach of NSPL is such that currently more than 40 percent of the total cotton production in the country can be traced to the cotton hybrids developed by them. Nuziveedu Seeds sales have grown by 22 percent during the last year.
Two Bt cotton products, Sona and Surakhsha were launched last year, specific to different agro-climatic zones in the country. Additionally, NSPL also got GEAC approvals for 164 cotton hybrids. This number signifies almost 18 percent of the number of hybrids that got approval last year. Apart from high selling brands such as Bunny and Mallika, 2011 saw NSPL improve the sales of its new Bt cotton hybrids such as Uttam, Raghav and Shalimar.
Besides cotton, NSPL also produces and markets seeds for field crops such as paddy, corn, sorghum, pearl millet, sunflower and vegetable crops. A strong partnership with 80,000 farmers for seed production has enabled it to become the largest seed producer in India with an annual output of 32,000 MT hybrid seeds. Today, NSPL's seeds are used by more than 5.5 million farmers of the country. Their marketing network is spread across 17 states involving approximately 2,500 distributors and over 59,000 dealers. New product evaluation trials involving approximately 70-80 products in 160-170 locations are conducted every year, to select the most suitable product for every specified agro-climate in the country.
The research and development (R&D) unit of NSPL is situated at Kompally, Andhra Pradesh and it prides in possessing the highest number of germplasms in India. The R&D center has over 171 personnel working on different projects. The center is attached to over 670 acres with fully irrigated research farms covering all agro-climatic zones of the country. It is also recognized as an ICAR testing center for cotton, maize, pearl millet, sunflower and rice. NSPL has and still continues to collaborate with various national and international organizations such as ICAR, SAUs, ICRISAT, AVRDC and IRRI.
One of the highlights of the last fiscal was the strategic public private partnership with the Government of Maharashtra. Under this partnership, for the Kharif season of 2012, NSPL would be involved in introducing new agronomic interventions in 10,000 acres in Maharashtra. NSPL will supply the cotton seed to the farmer along with pre- and post-season package of practices through farmer trainings. Additionally, NSPL group will provide the forward market linkage to the farmers in Maharashtra for selling their products. This will allow their sister concern to buy the kapas (cotton) from these farmers at the prevailing market rate on the day of sale. Farmers can store the lint after ginning in the warehouse provided. This initiative allows farmers to sell their goods as and when they get a reasonable price and further help them obtain a bank loan at a lower interest rate.
A similar partnership was forged between NSPL and the Uttar Pradesh government under a PPP for various agricultural extension activities. Under this project NSPL worked in 25 districts with paddy and maize for various extension activities such as crop demonstration, farmers trainings and field visits with the help of an Agriculture Technology Management Agency (ATMA) project coordinator. The project was finished in the last kharif season successfully. Such innovative extension services are very essential for the Bt cotton market to grow now as, it would be necessary to adopt new agronomic innovation with high density planting for higher yields.
NSPL has also implemented barcode technology for better tracking of the large inventory movement. This initiative was recently started with the cotton crop. Further establishing its reach around the country, NSPL inaugurated its first integrated plant of cotton in Aurangabad. Spread across 125,000 sqft, this plant has been started to provide infrastructure for production and processing. The plant has a batch process dilute sulphuric acid-recycling delinting plant for planting cotton seed. State-of-the-art equipment has been used to ensure effective processing.
Following up with earlier acquisitions of other seeds companies such as Pravardhan Seeds and Yaaganti Seeds, NSPL has also acquired Prabhat Agri Biotech in 2011.
In terms of distribution hitherto, NSPL has decided to go in the collaborative route by co-partnering with companies such as KRIBHCO, Coromandal, Tata Chemicals, Hariyaali Kisaan Bazar via exclusive marketing tie-ups. For the expansion of the company's marketing network, more of such partnerships are now being looked at.
||Key strategy initiatives
- Two Bt cotton products, Sona and Surakhsha were launched in 2011.
- NSPL got GEAC approvals for 164 cotton hybrids.
- Implemented barcode technology.
- Initiated PPP with Government of Maharashtra for providing the forward market linkage to the farmers in Maharashtra for selling their cotton.
- More than 40% of the total cotton production in the country can be traced to the cotton hybrids developed by NSPL.
- NSPL acquired Prabhat Agri Biotech in 2011.
- NSPL seeds are used by more than 5.5 million farmers.
- NSPL sales have grown by 14% during the last year.
- Expansion of marketing network though co-partners such as KRIBHCO, Tata Chemicals.
- Focus on releasing new hybrids for maize, paddy and vegetables.
- Look for the expansion of its marketing network through more partnerships.
- NSPL has set goals to achieve a market share of 32% from current 28% in cotton seed with the help of newly launched products coupled with the intensive extension work.