Don’t miss the latest developments in business and finance.

Increased focus on bio-fuels boosting hybrid maize biz

Image
Soumitra Trivedi Mumbai/ Ahmedabad
Last Updated : Feb 05 2013 | 2:06 AM IST
The increased focus on bio-fuels is boosting the area under maize and is providing a good business opportunity to the hybrid seeds growers.
 
The area under maize in Karnataka, Tamil Nadu and Maharashtra is increasing at 5 per cent to 6 per cent per annum.
 
G V Bhaskar Rao, chairman and MD of Kaveri Seeds Company Ltd, Hyderabad, told Business Standard, said, "Our major business comes from hybrid corn seeds. The cultivation of maize in Karnataka, Tamil Nadu and Maharashtra as well as Bihar have picked up ever since the country has started paying extra attention to bio-fuels. My company has witnessed a 5 per cent to 6 per cent growth in the area under maize in these three states."
 
"This brings a good opportunity for the farmers who will naturally turn towards hybrid seeds when they need extra output. Similarly, we are also witnessing tremendous growth in BT cotton seeds demand in states like Gujarat, UP, MP and Rajasthan in the last few years. Having a stronghold in the Southern region now we are focussing on the Northern and Western regions."
 
Kaveri Seed is in the business of research, production, processing and marketing of high quality hybrid seeds for crops like corn, sun flower, cotton, pearlmillet, paddy, grain and sorghum.
 
Rao said the company is planning to expand its facilities to increase the seed manufacturing capacity from the present 18,000 MT to 30,000 MT.
 
"We are planning to acquire farmland for research & development near Hyderabad, Alwar and Ahmedabad. We will also set up marketing offices and warehouses in Delhi, Lucknow, Jaipur, Ahmedabad, and Aurangabad."
 
"Presently we have 270 acres to carry out our research and development, and we are planning to add another 200 acres. We have already identified lands near Ahmedabad, Hyderabad and Alwar."
 
"Two corn cob drying plants in Andhra Pradesh and Karnataka, a biotechnology lab near Hyderabad, upgradation of existing seed processing plants at Kandalkoi, Gundla, Pochampally, Gatla, Narsingapur and Bellary; and a processing plant near Hyderabad are also in the expansion plan," Rao added.
 
To fund the the company is coming out with an IPO and plans to raise Rs 60 crore to Rs 68 crore. The IPO of 40 lakh shares opens on September 6. Price band of the 100 per cent book build issue is Rs 150-170 per share.
 
The issue closes on September 11. The net issue to the public is 38 lakh shares, and will constitute 29.20 per cent of the fully-diluted post-issue paid-up capital.

 
 

Also Read

First Published: Sep 01 2007 | 12:00 AM IST

Next Story