Industry Profile: Agriculture plays one of the key roles in India’s GDP. More than 55% Rural population. Agriculture products made part of 4th largest exported principal commodity with a 10% share. (from here ) It is more than the US $ 260 Billion industry with all its allied Sector like Chemical, Tractor, and others. As with any other significant size sector, agriculture is also growing at a slow speed. CAGR 3.3% in the last 5 Years.
India is known for its spices and related products. However, the production of Fruit makes us the second-largest producer.
Globally the demand for food production is ever-increasing to feed the increasing population. Due to many reasons, the land under agriculture is reducing, so the need for higher productivity is also growing. So it is essential to protect crops for increased yield from agricultural land. There are many hurdles in the path, and Farmer needs to use different types of chemicals. Interestingly India is among the lowest usage of crop protection per hectare. Lower than 2% global usage when Global Crop protection. So needless to say, there is a big market waiting for the companies Which are the perfect place.
Company profile: The Company is the Indian subsidiary of Bayer AG, an agriculture business and chemical company. The parent also runs a pharmaceutical business in India with a joint venture named Bayer Zydus limited. But that is not listed. The Company manufactures insecticides, rodenticides, fungicides, and herbicides. The Company operates through the Agri Care segment. In addition, the Company offers crop solutions for crops such as cotton, fruits, millet, mustard, pulses, rice, soybeans, sugar cane, vegetables, and wheat. The Crop Science Division is the largest division for Bayer in India. It is organized into two operating units: Crop Protection / Seeds and Environmental Science. Crop Protection / Seeds markets a broad portfolio of high-value seeds and innovative chemical and biological pest management solutions while providing extensive customer service for modern and sustainable agriculture. Environmental Science focuses on non-agricultural applications, with a broad portfolio of pest control products and services for areas ranging from the home and garden to forestry. Bayer is a market leader in the crop protection business in India. The Company offers various brands, such as Aliette, Antracol, Folicur, Melody Duo, and Nativo under the fungicides category; Adora, Adue, Atlantis, Basta, Laudis, Lucifer, Raft, Ricestar, and Topstar under the herbicides category; Admire, Alanto, Confidor, Decis 100, Fame, Flotis, Jump, Larvin, Oberon and Spintor under the insecticides category; Gaucho, Monceren, Raxil and Raxil Easy under the SeedGrowth category, and Ethrel and Planofix under the others category.
Shareholding Pattern: BSE Data
Financials and Ratios : [table id=177 /]
Future Prospects: Many things happened in India for Bayer. They sold the part business ( Vegetable seed ) to BASF. Monsanto Bayer merger was the big key for the Company. As India is becoming one leading market after china for specialty chemicals, companies like BAYER are right. That will be large as the outcome company will be the largest in the Crop segment and pesticides worldwide.
