Dhanlaxmi Crop Science Ltd IPO

About Dhanlaxmi Crop Science Ltd

Dhanlaxmi Crop Science Limited was originally incorporated as a Private Limited Company in the name of Dhanlaxmi Agrichem Private Limited on November 28, 2005 under the provisions of Companies Act, 1956 bearing Corporate Identification Number U24120GJ2005PTC047153 issued by Registrar of Companies - Gujarat, Dadra and Nagar Havelli. Subsequently the name of the company was changed to Dhanlaxmi Crop Science Private Limited vide a fresh Certificate of Incorporation consequent upon Change of Name dated February 09, 2007 bearing Corporate Identification Number U24120GJ2005PTC047153 issued by Registrar of Companies - Gujarat, Dadra and Nagar Havelli. Subsequently, the company was converted into Public Limited Company under the Companies Act, 2013 and the name of the Company was changed to Dhanlaxmi Crop Science Limited vide a fresh Certificate of Incorporation consequent upon conversion from Private Company to Public Company dated September 15, 2023 bearing Corporate Identification Number U24120GJ2005PLC047153 issued by Registrar of Companies - Ahmedabad.

India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for ~55% of India's population. Over 70 per cent of the rural households depend on agriculture as their principal means of livelihood. Foodgrain production in India touched 330.5 million metric tonnes (MT) in 2022-23 (3rd Advance Estimate). India is the world's 2nd largest producer of food grains, fruits and vegetables and the 2nd largest exporter of sugar. A total of 521.27 LMT rice has been anticipated for procurement for the upcoming KMS 2023-24, up from 496 LMT produced during the previous KMS 2022-23. The role of agriculture and allied sectors in India has always been a significant contributor to India's National GDP, though agriculture's proportion has steadily declined due to the rise in other industries. Over time with improved technological interventions, these sectors have undergone significant change in terms of crop diversification, use of genetically modified crops and marketing strategies. According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. Indian food and grocery market is the world's sixth largest, with retail contributing 70% of the sales. As per the First Advance Estimates for 2023-24 (Kharif only), total foodgrain production in the country is estimated at 148.5 million tonnes. Rabi crop area has from 709.09 lakh hectares in 2022-23 to 709.29 lakh hectares in 2022-23. In 2022-23 (as per the second advance estimate), India's horticulture output is expected to have hit a record 351.92 million tonnes (MT), an increase of about 4.74 million tonnes (1.37%) as compared to the year 2021-22. The Agriculture and Allied industry sector witnessed some major developments, investments, and support from the Government in the recent past. Between April 2000-March 2024, FDI in agriculture services stood at US$ 3.08 billion. According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian food processing industry has cumulatively attracted a Foreign Direct Investment (FDI) equity inflow of about US$ 12.58 billion between April 2000-March 2024. This accounts for 1.85% of total FDI inflows received across industries. Rapid population expansion in India is the main factor driving the industry. The rising income levels in rural and urban areas, which have contributed to an increase in the demand for agricultural products across the nation, provide additional support for this. In accordance with this, the market is being stimulated by the growing adoption of cutting-edge techniques including blockchain, artificial intelligence (AI), geographic information systems (GIS), drones, and remote sensing technologies, as well as the release of various e-farming applications. In terms of exports, the sector has seen good growth in the past year. India's agricultural and processed food products exports stood at US$ 35.18 billion in 2023-24 (April-December).

Dhanlaxmi Crop Science Limited is a technology driven seeds company that develops, produces, processes and sells seeds for a range of field crops and vegetables, has more than 18 years of experience in the Indian seeds industry. The Company integrates traditional breeding techniques with biotechnology tools and seek to produce hybrid and open pollinated variety field crops and vegetable seeds that deliver higher yields, enhanced product quality and higher levels of pest and disease tolerance over naturally occurring varieties. Its seeds are suitable for varying agroclimatic conditions, such as water availability, crop duration and soil attributes, across different geographic regions in India. The Company produced, as of September 30, 2024, seeds for 24 different field crops and vegetables and have operations in 5 states across India. The sale of cotton seeds contributes the majority of its revenue from operations, contributing 95.64%, 76.78%, 71.47% and 64.73% of our revenue from operations in September 30, 2024, Fiscal 2024, 2023 and 2022, respectively. Its product portfolio includes field crop and vegetable seeds for Cotton, Wheat, Cumin, Bajra, Maize, Gram, Okra, Green Gram, SSG, Soyabean, Milky, Mustard, Groundnut, Black Gram, Guar, Castor, Sesame, Jowar, Coriander, Red Gram, Green Pea, Multifeed, Onion etc. Its research and development activities include conventional breeding p rogrammes and the use of innovative biotechnology tools, which the company believes has driven the development of its diverse repository of germplasm, which has enabled it to develop an extensive portfolio of products.

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