By admin       2017-10-10

G Vijay Kumar, Kaveri Seeds :This year the cotton acreages have increased and higher demand indicates a firm price outlook as well for FY18. Some are saying that next year’s cotton growth may not be as good as this year’s and hence one could see some price correction post harvest. What is your take on this? It is too early to discuss all those things because a lot of rains are going on in some parts of India, more floods could be coming that we do not know about. Globally also, there is a lot oof impact of floods and cyclones including in the US. It is too early to say anything. We will get a clarity only in December or January. Do you think it could head for a price correction? Maybe 5% to 10% impact will be there. From Kaveri Seed’s perspective, there will not be much impact because we are gaining in many markets and also we are good in many other crops. Overall acreage will be there and we will compensate with maize sales or paddy sales or other sales. What about the non-cotton categories? What kind of growth are you pencilling in for this year as well as the next? How do you see your revenue mix shaping up both for cotton as well as non-cotton? Three to four years down the line, we want to see that non-cotton business making for more than 50% to 60%. That way we would have penetrated the entire pan-India market. In the past, we have been south centric in some parts of Maharashtra. Now, we have a pan-Indian presence. We are in West Bengal, UP, Rajasthan, Chattisgarh, Gujarat, Oddisha, Bihar among others. This year we have seen lot of growth in paddy while maize almost stagnated in first quarter but in July-August, it has picked up. Hopefully, during rabi crop, maize will go up. Overall, we are seeing that field crops, non-cotton crops will grow 20% to 25% for us. A couple of your smaller peers are very optimistic on vegetable seed. Competition is low right now in the segment while growth prospects are immense and margins are pretty high. What are your own product launch plans and the R&D spends here as part of the overall? Last year only, we entered into the vegetable seeds and we done a modest business. This year we are expecting almost 200% growth in the vegetable seed segment. We have almost 50 products yet to launch in next couple of years including this year, next two years. We want to grow next three to four years. There is more focus on vegetable seed segment. The Indian vegetable market seed market is also growing very fast 20% year on year. We want to capture that market share and look for a good growth in the vegetable seed market Your annual report highlights how management team has been strengthened with senior hires from MNCs. Extremely strong cash flows remain constant despite increase in expenses as well last year. As per your vision, what milestones and return ratios do you think that you will be able to aim for and actually achieve over the coming years? Next three years we are expecting 15% to 20% top line growth and 20% to 25% bottom line growth subject to good monsoon. This is what we are targeting internally.

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