1. Camson Biotechnologies Limited
A leader in Agricultural Innovation

2. Overview

3. Overview Activity Competitive Advantages Growth over the Years
Business verticals:
Seeds
Biocides & Bio fertilizers
India's first integrated agricultural biotech company
First mover advantage – Biocides
All set to leverage the hard work put in over the last one and half decades
CAGR of over 80% (FY 06–10)
Consistent EBITDA Margins of 19% + in last 5 years
Consistent PAT Margins of 16% + in last 5 years
Financials
(Amt Rs. in cr)
Revenue
EBITDA
PAT
Source:

4. Vision: Mission: Vision & Mission
“Camson visualises a healthy and disease-free society by providing safe food”
Mission:
“To be a world-class manufacturer of biotechnology products which are effective, non-poisonous, eco-friendly, zero-residue and cost effective through state-of-the-art technology, backed by on-going research and development activities thereby providing good health to all.”
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5. Industry Agenda Overview Company profile Growth Drivers Future Roadmap
Financials
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6. Indian Agriculture Industry
Growing Population
Reducing Arable Land due to
Rapid Industrialisation
Use of Crops as Bio-Fuels
Expected to grow from 1.1 bn in 2009 to 1.9 bn by 2050
Per capita availability of agri land
0.33 ha
0.14 ha
0.05 ha
1951
2001
2035
Source: UN Population Division (2005)
Source: Union Agriculture Ministry (2006)
Food Scarcity Crisis
India would be short of 14 mmt of food grains by 2017 if the present growth rate of food grain production continues.
Source: Govt. of India
Will require high yield seeds & bio-fertilizers to improve agriculture productivity
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7. Industry Overview – Agrochemicals (Pesticides)
Global Agrochemicals Industry
Global Agrochemicals Industry grew at a CAGR of 9.3% from 2003 to reach US$ 41.7 billion in 2008.
Herbicides (45%) and Insecticides (33%) are the largest consumed agrochemicals.
41.7
US$ bn
9.9
(%)
6.0
15.0
2.3
1.6
2.6
2001
2002
2003
2004
2005
2006
2007
2008
Market size
Yoy growth (%)
Source: SBICAP Report, Mar 2010
Indian Agrochemicals Industry
Pesticide Consumption in India
Expected to grow at 7.5% from US$ 1.36 bn (2009) to US$ 1.7 bn (2012).
4th largest producer in the world after the US, Japan and China.
Produces 16% of the world’s food grains; responsible for only 2% of world’s pesticides usage.
Approx. 18% of the crop yield worth Rs. 900 bn is lost due to pests every year in India.
Cotton
Rice
Chilli
Wheat
Vegetables
Others
Global Pesticide Consumption
25%
12% 9%
Fruits & Veg
Rice
Maize
Cotton
Soya
Others
Source: CARE Report, Mar 2010
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8. Industry Overview – Indian Seed Market
6th largest seed market in the world. Estimated to be Rs bn.
Growing at 12-14% annually vis-à-vis global market which is growing 4-5% annually.
Categorised into:
Biotech trait suppliers
Hybrid seed players / breeders
Companies that provide seeds to farmers
Constituents
Public Sector: Mostly focus on high volume low value certified seeds such as pulses, wheat and soybean
Private Sector: Focus on high-value hybrid seeds such as cotton, cereals and vegetables
Currently exports account for less that 5% of the total hybrids market in India
The country exports predominantly to South-East Asian countries
Indian Seed Market Size (Approx. Rs. in bn)
Indian Seed Market
Farm Saved
Seeds – 75%
Commercial
Seeds - 25%
Public - 24%
Private - 75%
Unorganised
(without research capabilities) 43%
Organised
(with research capabilities) 57%
Source: SBICAP Securities Research
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9. Hybrid Seeds v/s Genetically Modified (GM)
Difference
Crossbred species of a two closely related but different parent vegetables
Taking desirable gene sequences from other plants (and even animals)
Process
Only happens in the laboratory because it combines DNA from organisms (plants or animals) outside of a vegetable's species
Hybridisation happens regularly in nature when closely related species cross-pollinate
Long-term Effect
Hybrid vegetables have a favorable public opinion since they have existed naturally for centuries
Result of a new technology that may have serious drawback
Little is known about the long-term effects on the consumer of the extra gene sequences.
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10. Advantages of using Hybrid Seeds in Horticulture
Commercial sowing in off-season gives high yield and better economical income to the poor growers
Increase in the yield per unit area per unit time due to the development of varieties with high yield potential, early maturity and improved plant architecture
Higher Returns to the Farmers
Greater Productivity
Better Adaptability
Better Quality Produce
Have wider adaptability to various environments
Possess the characteristics suited to off-season production
Fresh, attractive and free from disease
Better transport quality
Suitable for processing
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11. Company profile Agenda Overview Industry Growth Drivers Future Roadmap
Financials
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12. Milestones & Achievements
Procures land for 3 production units in Nangal(HP), Kotabagh (Uttarakhand) & Aligarh(UP).
Launch of “Sonmat”, yellow skinned watermelon.
Launch of Cherry tomato
Launch of “Calbase”- Biocide for soil application.
In-house R&D Unit recognised by Govt. of India, Ministry of Science and Technology, New Delhi
Exclusive Agreement with Government of Uttarakhand
Started Operations
1993
1995
Became a Public Limited Company
Collaborative Research Agreement on Molecular Genetics with the University of Dharwad, Karnataka
Identified as One of the Fastest Growing Technology Companies and placed at 17th in the Technology 50 India 2008 Programme conducted by Deloitte Touche Tohmatsu, Asia Pacific
Camson’s Pioneering Products
First Indian company to launch a seed variety giving yellow tomatoes
First Indian company in India to research, produce and market unique seeds like ice box watermelons under 3 kilos out of their own R&D facilities
First Indian company to produce watermelon with yellow skin
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13. Business Segments: Complete Solutions for Farmers
Currently its business consists of 3 verticals - seeds, biocides and bio-fertilizers
Biotech products (Zero-residue)
Seeds
Proven track record of hybrid vegetable seeds
Range of over 49 varieties
Pipeline of an additional 70 more varieties
Bio-fertilizers
Effective mobilisation of nutrients to plant
Reduce the need to use chemical fertilizers by restoring the soils natural nutrient cycle and enhancing the soil conditions
Biocides
In house library of 3700 selected and characterised microbes
Effective in controlling various pests and pathogens
Leading edge in innovating/ formulating effective biocides
Challenges for Farmers
Solutions by Camson
Supply to the increasing global demand for food
Reducing the negative impact of crop protection practices on consumers, farm workers and the environment
Hybrid Seed varieties - Offer maximum compatibility with organic and natural conditions and better yields
Bio-fertilizers - Unique combinations of bio-agents that enhance the concentration of plant nutrients in the soil
Zero-residue Biocides - enable farmers to access higher-value markets by meeting stringent requirements on pesticide residue levels
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14. Strong Product Portfolio
Product Segments
Hybrid Seeds
Biotech Products (Bio-fertilizers and Biocides)
Revenue Contribution
Approximately 64%
Approximately 36%
Product Matrix (till date)
Hybrid Seeds (48 varieties)
Biotech Products Type (27 Variants)
Watermelon (5)
Tomato (11)
Chilly (4)
Brinjal (15)
Okra (3)
Bitter Gourd (4)
Bottle Gourd (2)
Sponge Gourd (2)
Sweet Corn (1)
Musk melon (1)
Biofungicides (6)
Bio Insecticides (9)
Bio Stimulants (6)
Bio-Fertilisers (6)
Product Features
Longer shelf life
Higher realisation due to unique characteristics
Offer great protection period
Pests/insects do not develop resistance to biocide even after multiple uses
Fewer sprays, in turn saves labour cost
Greater yield per acre
Zero residue product
Can be used along with chemical pesticides
Cater to wide range of crops
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15. Pioneer Products Seed Product Portfolio Biocides Product Portfolio
Key Crops
Brands
Description
Watermelons
Netravati and Vedavati
Higher margin product and expected to be future growth driver
Tomato
Ganga, Songanaga and Akash Ganga
The second highest revenue earner
First Indian company to launch a seed variety giving yellow tomatoes
Chilies
Gomti and Pennar
Gomti chilly is dark green with 8-10 cm length.
This variety of seed has been the highest gross earner for Camson.
Biocides Product Portfolio
Product
Major Crops
For Control and Elimination of
Calphomil
Veg, Fruits, Flowers and Cereals
Fungal infection like downy mildew, phytopothora, pyhium, wilt, blast
Calnova
Veg, Fruits and Flowers
Mites(sucking pest), Thrips
Calstim
Bio-stimulants
Caltika
Plant tonic
Calpaste
Veg, Fruits, Flowers, Cereals and Cotton
Insecticide for all soft bodied insects
Calbahaar
Prevention and control of soil borne pathogens and insects
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16. Location and Target Markets
Locations
Setting up a production facility in Nangal, Himachal Pradesh
Currently ,the company is setting up a production unit in Uttarakhand to cater exclusively to the Northern India market
Camson has research center in Aligarh, Uttar Pradesh
Headquartered in Bangalore, Camson has a 25 acre R&D centre and production facility in Dodaballapur; also in process of developing another R&D center in Dodaballapur
Target Markets
Target Farmers :
Currently active in Six States –
Andhra Pradesh, Uttar Pradesh (including Uttaranchal), Maharashtra, Madhya Pradesh, Karnataka and Haryana
These six states account for 85% of sales
Intends to expand on pan-India basis and enter in International markets
Three categories
Category A : Export oriented farmers.
Category B : Who have not been able to find remedial solution for a particular pest/disease
Category C: Who understand harmful effects of chemical pesticides
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17. Sales & Distribution Network
13 Branches all over India
Dedicated team of 300 marketing professionals across India
Wide, well-connected network of 300 distributors and 2,600 dealers across India
Authorised Distributors (AD):
Obtains product at a lower price than APD
Distribution is through its Bangalore centre. Seeds are normally couriered immediately and delivered within 3-4 days.
For biotech products which have a longer shelf life and are much more bulky, Camson has Clearing & Forwarding agents across the country for storage and handling
CAMSON
Marketing
Retail Shops
Authorised Preferential Dealer (APD):
Larger retailer at taluka level who also supplies to some retail shops
Sales Officers
Field Assistants
Employs Field Assistants at local level on a temporary basis during sales promotions
Demos
To reach farmers directly organises various kinds of trials and demonstrations
Free Consultancy
Give general advice to farmers on various products and also write out “prescriptions” on appropriate usage of biocides along with seeds
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18. Manufacturing Facilities
Quick Facts
Have been set up in southern and northern parts of India, keeping in mind the diverse demand in both.
Supported by well-equipped and internally connected storage facilities covering key locations in India.
Currently, has one facility at Dodaballapur in Bangalore
Setting up additional facilities in Uttarakhand and Himachal Pradesh
Seed multiplication is through contract farming at different locations
Total area under contract farming is approx acres
Contract production (Hybrid seeds) spread over 1000 acres in Karnataka, Andhra Pradesh and Tamil Nadu
Tax advantage for the 25 acre centre in Dodaballapur which has agricultural, residential and industrial units housed within it
Tax exemptions in biocides units in Nangal and Kotabagh
Location
Karnataka (Existing)
Karnataka
(New building)
Nangal (HP)
Aligarh (UP)
Kotabagh (Uttarakhand)
Total
Type
R&D Facility
Biocide plant
R&D Lab
Land Area (Acres) 20
1.8 12
1.5
Area (Building)
45,000 sq.mts
30,000 sq. ft
40,000 sq. ft
6,000 sq. ft
30,000 sq. ft
Capex (Rs. mn)
100 80 10
270
Capacity (ltrs on a per shift basis)
900,000 NA
800,000
2,600,000
Expected Operational Date -
31-Mar-12
31-Mar-11
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19. Strong R&D Capabilities
Strong focus on in-house research capabilities has resulted in successful portfolio of products over the past 3 years
22 biocides
7 bio-fertilizers
17 hybrid seeds
The ongoing research will add another 70 more varieties of seeds
Entire Biocides research process takes about years
Has already established over 3,700 selected microbes
Entire Hybrid Seeds research process takes about years
Has a large number of selected nucleus germplasms
R&D Facilities
Already has its 25 acre R&D centre and production facility in Dodaballapur
R&D facility in Aligarh, UP & planning to set up another R&D center at Dodaballapur
Recognition
In-house R&D Unit recognised by Govt. of India, Ministry of Science and Technology, New Delhi
Developed a proprietary technology platform
Consisting of a microorganism database, screening technology and a natural product compound library
Camson's ability to leverage its proprietary technology platform combined with frontier science continues to advance Camson's reputation as a leading innovator in the biotechnology space
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20. Camson’s Zero Residue Farming Products
Production of Biocides and Bio-fertilizers
Based on
Formulates of
Biocides
Secondary Metabolites
(Bio-agents beneficial to soil conditioning and improve the plant physiology and produce)
Microbial
Bio-fertilizers
Organically derived biocides and bio-fertilizers to protect crops and enhance growth
Synthetic Chemicals
Biocides and Bio-fertilizers
Pests develop efficacy
They cause acute and chronic health effects
Affect the equilibrium of agricultural systems and the environment
Also lead to socio-economic problems in the farming community
Mobilize the micronutrients in soil to maximise their utilisation by the growing plant
Work specifically against certain pests, without harming other organisms
Since they are living strains, they assimilate into the ecosystem without leaving any toxic residue
Difference
Due to recent technological advances and increasing environment and safety concerns, biologically-derived products are becoming increasingly important components of Integrated Pest Management
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21. Management Team
Management team comprises of a core team of 35+ senior technocrats, scientists and sales professionals
Name
Designation
Qualification
Experience
Mr. Dhirendra Kumar
Managing
Director
M.Sc. Ag., MBA
Total of 27 years of experience. Has extensive expertise, especially in promotion and marketing of agricultural products.
Mr. A N Singh
Non-Executive Director
M.Sc. Ag
Has worked for over 40 years in the agricultural sector. Was with the Ministry of Agriculture, Govt. of India & retired as Additional Commissioner. This was followed by assignments as a Consultant to the World Bank.
Krishnaswamy Ramaswamy Iyer
Non-Executive, Independent Director
B.A (Hons),
LLB, CAIIB
Has over 42 years of experience in the banking and financial services industry. Has held positions like DGM, SBI; President, San Paola Hambro Finance; MD, EXIM Bank of Tanzania & CEO, Nepal Industrial & Commercial Bank.
Virendra Kumar Singh
Non-Executive Director
Master of Engineering degree, MBA.
He has worked extensively in the automobile sector, innovating and developing new vehicle prototypes, and managing production and sales. He has also been a first-generation entrepreneur running a successful venture of environmentally-viable infrastructure focused on the gainful use of solar energy.
B. C. Madappa
Non-Executive, Independent Director
Bachelor of Science degree
Madappa has over 30 years of experience in media and allied industries. He was responsible for the creation and incubation of India’s first professional PR firm and also India’s first direct marketing firm in collaboration with global industrial leaders.
Dr Anirudh Kumar Singh
Non-Executive, Independent Director
M.Sc. in Plant Pathology and a Ph.D
He has over 30 years of experience in Plant Genetics and BreedingDr Singh has published several research articles in reputed national and international scientific journals.
Sanjay Agarwal
Non-Executive, Independent Director
M.Com.
Agarwal has over 20 years of experience in managing finances, backward integration and global expansion. For over two decades, he has played a major role in making K S Oils a successful and globally integrated venture
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22. Growth Drivers Agenda Overview Industry Company profile Future Roadmap
Financials
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23. Shifting demand from Pesticides to Biocides
India currently consumes only 2% of world’s pesticides usage resulting in large amount of crop yield loss (~18% of the crop yield worth Rs. 900 bn) every year
Low usage of
Crop Protection Products at Present
High emphasis on achieving food sufficiency is expected to drive huge demand for crop protection products in future
Huge Expected Future Demand
Hence, the potential of Biocide market is the total Pesticides market (US$ 1.7 bn by 2012 in India)
20% of food products with residue above tolerance level in India compared to world average of 2%
Impact from use of Pesticides
Source: SBICAP Report (Mar, 2010)
The increasing awareness about poisonous chemical pesticides will shift the demand from pesticides to Biocides which are very effective and eco-friendly
Biocides as Replacement for Pesticides
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24. Growth Drivers Increasing Population Rising Per Capita Income
High emphasis on achieving food grain self sufficiency.
Limited Farmland
Low Yield
Use of high yield seeds & bio-fertilizers to improve productivity
Low access to fertilizers & high yield seeds by neighboring countries
India’s vast collection of germplasm coupled with its R&D capabilities
India to emerge as an export hub
Increasing min. support prices of agricultural crops
Rising demand for commodities
Driving the use of quality agricultural inputs
Apart from above factors, increasing demand for organic products together with increasing awareness, growth of Horticulture & Floriculture, support from Government and lower cost of usage is expected to drive future demand for Bio-tech products
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25. Future Roadmap Agenda Overview Industry Company profile Growth Drivers
Financials
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26. Ready to lead the Agricultural Biotechnology Sector
Equipped to Spearhead the Agri- Biotechnology Sector
Integrated Player
First Mover Advantage – Biocides
Inflection Point
Competitive Advantages
India's first wholly integrated agricultural biotech company with presence in hybrid seeds and agricultural biotech products
Has a first mover advantage in certain product categories. Its future growth will depend on its ability to leverage the growth potential in replacing the chemical pesticides using the residue-free platform.
All set to leverage the hard work put in over the last one and half decades. A typical biocide research takes 9 – 12 years. Similarly it takes 5-6 years to launch a new hybrid.
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27. Surmounting Challenges
Hybrid seeds cannot be patented in India
The company can however patent the hybrid seeds in the US. However, through the Plant Breeders right which would be implemented from Sept/Oct 2010, the seeds of a company are protected and can also be licensed.
Patent Filing
Unexpected increase in demand
However, the new facilities being set up will take care of these concerns.
Production Capacity
Illiterate farmers and hence poor acceptability
Camson’s products have already been received enthusiastically by the farmers.
It has adopted a multi pronged approach through demos, advertisements and disseminating information of good farming practices & success stories of products
Illiterate farmers
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28. Camson’s Goals
Focusing R&D efforts on developing effective technologies for raising crop productivity, protecting the environment and improving health and quality of life
Capitalising on strong and well-balanced portfolio with a special focus on innovative bio-products
Remaining focused on innovation and operational excellence
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29. Financials Agenda Overview Industry Company profile Camson Advantage
Growth Drivers
Future Ahead
Financials
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30. Financial Highlights Particulars FY 2005-06 FY 2006-07 FY 2007-08
Amount (Rs. in cr)
Particulars FY FY FY FY FY
Revenue 8 18 42 49 80
EBITDA 3 4 9 10 17
EBITDA Margin
30%
25%
21%
19%
PAT 2 15
PAT Margin
22%
16%
Source:

31. First Quarter Results – FY 2010-11
Particulars
Q1 FY
Q1 FY
Change %
Revenue
20.71
19.65
5.39%
EBITDA
5.29
3.98
32.91%
EBITDA Margin
25.6%
20.3%
PAT
5.41
3.72
45.43%
PAT Margin
26.2%
18.9%
Source:

32. Appendix
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33. Regulatory Aspects – Current Regulations
Provide basic regulatory structure to ensure seed control in India. The Act provides for compulsory quality control and voluntary certification of seeds of any notified kind and variety and truthful labeling of seeds. The Act also created the various seed regulatory bodies and defined their functions & provided guidelines on minimum limits of germination and purity, regulation of the sale of seed, certification, etc.
SEEDS ACT, 1966 &
SEED Rules, 1968
This order was issued under the Essential Commodities Act, 1955, and provided the procedure for registration of every person carrying on the business of selling, exporting or importing seeds of a notified kind or variety.
Seeds Control Order, 1983 (under the E C Act, 1955)
This policy relaxed norms for the import of technology and parental material, and opened the doors to MNC seed companies. However, the policy allowed imports only if the foreign supplier supplies the parental line seeds or breeder seeds to the Indian company within two years of the first consignment.
New Policy on Seed Development, 1988
It recognises the need to protect the plant breeder’s right so as to stimulate R&D in both the public and private sector. It defines the process for plant variety registration and also requires disclosure of the expected performance under given conditions. The Act gives the farmer the right to claim compensation if the seeds does not perform as expected. It also extends the breeders’ right to production, selling, marketing, distribution, export and import of seeds and/or propagating material of protected variety.
The Protection of Plant Varieties and Farmers‘ Rights Act (PPVFR), 2001.
The Protection of Plant Varieties and Farmers‘ Rights Act (PPVFR), 2001.
This policy laid down the foundation for comprehensive reforms. It included implementation of an effective sui generic system for intellectual property protection to stimulate investment in R&D of new plant varieties. The policy also acknowledged the need to adopt technology and protect the farmer from exploitation.
The seeds sector has witnessed many changes since 1966 when the existing Seeds Act was passed. These include new technologies such as GM seeds and the entry of private and foreign seeds companies. In order to address these changes, the proposed Seeds Bill, 2004 seeks to replace the Seeds Act, The changes include regulation and registration of all seeds to be sold (instead of only notified kinds), provisions for self-certification and accreditation of private seed testing laboratories, and regulation of transgenic seeds.
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34. Regulatory Aspects – Seed Bill 2004
Certification & Registration of Seeds
Registration of
Seeds
Consumer Protection
Aim of the Bill
Farmers’ Rights
The Bill aims to regulate the quality of seeds sold, and replaces the Seeds Act 1966
Transgenic variety of seeds will still need clearance under the provisions of the Environment (Protection) Act, 1986 before being registered. A variety of seed containing any technology considered harmful or potentially harmful shall not be registered.
All varieties of seeds for sale (except those sold by farmers directly) have to be registered. The seeds are required to meet certain prescribed minimum standards
The Bill proposes to establish a Central Seed Committee CSC), which may appoint Sub‐Committees as needed. One of the subcommittees will be the Registration Sub Committee, which shall maintain a National Register of Seeds for all varieties of seed.
Every State Government will establish a State Seed Committee which will have an advisory role
The Bill protects the right of a farmer to save, use, exchange,
share or sell his farm seeds and planting material
However, the farmer cannot sell seeds or planting material under a brand name (if he does then they have to be registered)
Also, all seeds sold by farmers need to conform to the minimum standards regarding germination, physical purity and genetic purity applicable to registered seeds
For all registered varieties, seed producers, distributors and vendors have to disclose the expected performance under certain given conditions
If a registered variety of seeds fails to perform to expected standards, the farmer can claim compensation from the producer or dealer under the Consumer Protection Act, 1986
The Bill permits self certification of seeds by accredited agencies and allows the central govt. to recognise certification by foreign seed certification agencies
Every seed producer and dealer, and horticulture nursery has to be registered with the State Government.
The Seeds Bill was introduced in the Rajya Sabha on 9 December Through registration and certification, the draft law seeks to promote quality seeds
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35. Thank You Camson Biotechnologies Ltd
CBTL IN
590076
CAMS.BO
Camson Biotechnologies Ltd
No. 223, First Main, Domlur Second Stage, Bangalore
Tel: Fax:
Website:
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