CREDIT SEMINAR REPORT 0N

BAYER CROPSCIENCE

DEEPAK KUMAR MANDOWARA MBA(AB) 1ST YEAR

INSTITUTE OF AGRI BUSINESS MANAGEMENT RAJASTHAN AGRICULTURAL UNIVERSITY, BIKANER

DECLARATION

This is to declare that, I, Deepak Kumar Mandowara a student of Post Graduate Programme in Agri Business Management (2008-10 Batch), from Institute of Agribusiness Management, RAU, Bikaner, have given original and authentic data, information and maintained full confidentiality to the best of my knowledge in the Credit Seminar report titled Bayer CropScience and that, no part of this information has been used for any other assignment but for the partial fulfillment of the requirements towards the completion of the said course.

(Deepak Kumar Mandowara) IABM, Bikaner

Contents
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S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Title Introduction History Bayer group of companies in India Vision & Values Strategic Objectives Facts about the Company Board of Directors Products of the Company Competitor Corporate Social Responsibility Recent News Contact Address References

Page No. 4 5 6 7 8 8 9 10-14 15-16 17 18 19 19

Introduction
Bayer Cropscience is one of the worlds leading innovative cropscience companies in the area of crop protection, non agricultural pest control (Environmental Science), seed and plant biotechnology (BioScience).

CROP PROTECTION : develops and markets high performance, trusted and innovative fungicides, herbicides, insecticides and seed treatment products. ENVIRONMENTAL SCIENCE : offers solutions to control pests and weeds efficiently and to improve the quality of life of non crop professional users and consumers. BIOSCIENCE : uses plant biotechnology and conventional breeding to offer sustainable,high value solutions for agriculture and nutrition. Headquarter of Bayer CropScience is located at Monheim (Germany). Total sales of Company at the end of the year 2007 were EUR 5,826 million. One of the major strength of the Bayer CropScience is its truly international workforce of 17,800 employees. Its products & Services represents in more than 120 countries. Sales 2007 by business :

History of Bayer CropScience

In 1863 Friedr.Bayer et comp. founded by Friedrich Bayer &Johann Friedrich in Weskott (Germany). In 1893 Worlds first synthetic insecticide,Antinonnin, launched In 1896 company was set-up in Mumbai in India as Farben Fabrican Bayer AG. In 1951 first systemic insecticide Systox(demeton) launched. In 1972 changing name- Bayer AG. In 1979 construction of Agriculture center in Monheim (Germany). In 1986 Hoechst acquires Nunza Vegetable seeds, Healen (Neatherland), today a subsidiary of Bayer CropScience. In 1991 Imidacloprid insecticide launched under the brand name Confidor and Gaucho. In 2002 Bayer CropScience formed through Bayers acquisition of Aventis CropScience. In 2007 acquisition of Stoneville Pedigreed seed company (Cotton seed).

Bayer Group of companies in India

Bayer CropScience Limited, constitutes the core cropscience company and has production facilities at the Bayer sites in Thane, Himatnagar and Ankleshwar. With the 5

acquisition of Aventis Cropscience Limited worldwide, Bayer is the undisputed leader in the crop protection business in India. Bayer Pharmaceuticals Private Limited, was established in July 2000 and is a wholly owned pharmaceutical subsidiary of Bayer MaterialScience Private Limited. The company handles the pharmaceutical sales and marketing operations, and has the flexibility to speed up investment in new product launches and intensify research and development activities in India. Bayer MaterialScience Private Limited is one of the largest producers of polymers and high-performance plastics. Its innovative development in coatings, adhesives, insulating materials and sealants, polycarbonates and polyurethanes significantly enhance our lives, particularly in the automotive and construction, electrical and electronics, household, sports and leisure sectors. The Company has a plant in Cuddalore, near Chennai, which manufactures thermoplastic polyurethanes. Bayer BioScience Private Limited, headquartered in Hyderabad, with activities in bioscience to develop hybrid seeds for crops catering to specific farmers' needs across India. The company, incorporated in 1977, is now a part of the Bayer CropScience Group and has emerged as a national player having the advantage of technology transfer, excellent R&D facilities and presence in hybrid as well as field crops. Bilag Industries Private Limited, is a group company of Bayer CropScience. With its competitive technology, Bilag is a center of excellence for manufacturing and process development chemistry. It is one of the largest manufacturers of synthetic pyrethroids in the world. Bayer Polychem (India) Limited, is a 100% subsidiary of Bayer MaterialScience Private Limited. The company handles the Diabetes Care and Animal Health businesses of Bayer in India.

Vision of Company
To be a leading partner in providing products and combined solutions for the production of quality food, feed and fiber to meet the global challenges of tomorrow.

Values of Company
A will to succeed : includes a personal commitment to achieve set goals and to win by adhering to a standard of excellence; pursuing goal achievement with energy, drive and determination. Integrity, openness and honesty : includes a personal ;acting responsibly and reliably. 1. Sustainability of action : includes a personal commitment to act in a way that balances the economic, ecological, and social needs of current and future generations by reconciling short-term results with long-term requirements. 2. A passion for stakeholders : includes a personal commitment to deliver value for stakeholders by a focus on the needs of customers; dedication to quality and reliability; work and development opportunities for people. 3. Respect for people and nature : includes a personal commitment to value people and their different perspectives and cultures within and outside the company by seeing the human being in your partner; treating each other fairly; providing room for personal growth; encouraging self-initiative and personal accountability; taking benefit from diversity; ensuring a high level of health, safety and environmental protection; utilizing natural resources prudently. commitment to stand as a role

model for all company values by accepting accountability for actions and results

Strategic objectives
To achieve sustainable profitability by :

Capitalizing on strong and well-balanced portfolio with a special focus on innovative and high-margin product. Optimizing efficiency in operative and administrative processes.

To leverage on active portfolio management by : Capitalizing on successful life cycle management. Improving the portfolio mix.

To foster industry leadership in innovation by : Focusing on business and technology innovation to deliver a sustainable pipeline of new active ingredient. Addressing needs for bio-based resources through plant biotechnology.

To be the most attractive employer in industry by : Identifying, retaining and developing the best talent employees.

Facts about the company

Total Income : Rs.8815.15 million Profit : Rs.568.58 million Export Turnover : Rs.1233.30 million Net Current Assets : 2775.67 million Number of Employees : 1,020 Expenditure on Employees : 673.89 million Number of Shareholders : 21,180

Source : Based on Annual report 2006 of Bayer CropScience (www.bayergroupindia.com)

Group Managemant Board

S. No. 1. 2. 3. 4. 5.

Name
Werner Wenning Prof.Friedrich Berschauer Dr.Bernd Naaf Dr.Pascal Housset Dr.Alexander

Designation
Chairman of Board of Management of Bayer Group Chairman of Board of Management of Bayer CropScience Head of Crop Protection Head of Environmental Science Head of Research

Board of Directors S.No. 1. 2. 3. 4. 5. 6. 7. Name

Dr. Vijay Mallya Mr. Stephan Gerlich Mr. Sharad M. Kulkarni Mr. Johannes M. Dietsch Mr. A. K. Ravi Nedungadi Mr. Raj Kaul Ms. Christiane Kunze

Designation
Chairman Vice Chairman & Managing Director Director Director Director Director Whole-time Director

Products

Crop protection : has an impressively wide range of effective solutions at hand to tackle the problems of farmers. 1. Insecticide : Bayer CropSciences leading position in insecticides is the consequence of well-devised strategies. Ranging from the first systemic insecticide to the extremely successful chloronicotinyl's group, long history in 9

insect control is based on highly effective active ingredients and state-of-the-art application methods that guarantee long-lasting efficacy. Brands : (Confidor,Admire, Calypso, Decis, Temik, Oberon) 2. Herbicides : Bayer CropScience ranks number 3 in the global herbicides market including Plant Growth Regulators (PGR), while it hold a joint number 1 position in conventional herbicides. Brands : (Atlantis, Basta, Topstar, Whip Super) 3. Fungicides : Fungicides avoid or abolish fungal plant diseases, which could affect severely harvest outcome and quality. Major fungicide markets are cereals, vegetables, fruits, vine, rice and industrial crops e.g. canola and soybean. Bayer is no. 2 in fungicides worldwide. e.g. (Antracol, Baycor, Folicur, Monceren) 4. Seed Treatment : Seed treatment involves the use of a wide range of crop protection in a broad spectrum of crops. Based on comprising insecticides, fungicides and CropScience is the clear number 1 in this field. e.g. (Gaucho, Raxil) 5. Plant Growth Regulators : The plant hormone system is responsible for a wide variety of physiological effects that are crucial factors for the success or failure of crop management. Influencing the plant physiology in order to effectively utilize or protect the natural yield potential of a crop is a century old practice. Bayer CropScience is one of the leading companies in the plant growth regulator (PGR) market. e.g. (Bayfolan zinc, Ehtrel, Panofix) Environmental Science: offer solutions to control pests and weeds efficiently and to improve the quality of life and environment of both professional users and amateur gardeners who share the growing awareness of health and hygiene issues. 1. Professional Pest Management : Bayer Environmental Science provides a wide range of products for professional pest management. General Insect Control (GIC) is the use of products for the prevention or control of crawling or flying insects including cockroaches, ants, wasps, weevils, lice, 10 well-balanced portfolio products, Bayer combination

silver fish etc. in and around private homes and dwellings, offices, shops, hotels, restaurants, food storage premises and warehouses, factories and other commercial buildings. Rodenticide are products used by professionals for the control of rodents (rats and mice) in and around private homes and dwellings, offices, shops, hotels, restaurants, food storage premises and warehouses, factories and other commercial buildings. Professional Pest Control Range of Products: Cockroach Gel For control of Cockroaches Maxforce ic Gel For control of Cockroaches Responsor 2.45 SC For control of Cockroaches, Mosquitoes and House flies Solfac 050 EW For control of Cockroaches, Mosquitoes and House flies K-Othrine 2.5 SC For control of Cockroaches K-Obiol 2.5 WP For control of Stored Grain Pests Premise 30.5 SC For control of Termites Bayer Advanced - Rodent control - For control of Rats

2. Vector and Locust Control : Bayer Environmental Science provides a range of products for professional use in the control of insects and others pests which act as vectors and are responsible for the transmission of numerous diseases such as malaria, sleeping sickness, chagas, yellow fever, dengue, encephalitis, filariasis and schistosomiasis. There are also effective products for the control of nuisance mosquitoes in urban areas as well as for locust & grasshopper control. Locust control is the application of insecticides for the control of locusts and grasshoppers before they damage crops. Vector Control Range of Products: Baytex 1000 For control of Mosquito larvae Baytex granule For control of Mosquito larvae Bi-Larv 25 WP For control of Mosquito larvae Solfac 10 WP For control of Adult Mosquitoes, Flies and Cockroaches 11

Kingfog 1.25 ULV For control of Flying insects

3. Green Industry : The Green Industry segment is yet to make a beginning in India and BES is soon likely to launch products for this business segment.In the portfolio of the green industry, Bayer Environmental Science has a comprehensive range of products for professional use in the following segments: turf ornamentals forestry industrial vegetation management The term turf relates to the care, management and maintenance of turf on golf courses, sports fields, municipal parks, public gardens, government and commercial properties and professionally treated private gardens. Ornamentals is the care, management and maintenance of trees, shrubs, annual and perennial plants grown primarily for aesthetic purposes in nurseries (including both field and container grown), green houses, outdoor amenities, parks and gardens. Forestry encompasses the care, management and maintenance of the commercial production of trees for paper, pulp, timber and other wood products. Industrial vegetation management is the care, management and maintenance of vegetation at industrial sites including railways, airports, roadways, power plants and other commercial production sites BioScience : BioScience business unit aims to promote growth in main crop areas (cotton, canola, rice and vegetables). To this end develop crop seeds with enhanced yield and quality properties for the benefit of agriculture, the food-processing industry, consumers and the environment. Bayer employ plant biotechnology and modern breeding methods for this. The individual seed varieties are adapted to the requirements of the relevant markets, and guarantee high quality. work is focused on improving the plant properties, for example their resistance to the most varied of environmental influences.

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1. Vegetable Seed : Nunhems vegetable seed Nunhems markets more than 2,500 vegetable seed varieties in 28 species around the globe to professional growers, plant propagators, seed dealers and the fresh produce and food processing industries. The main crops are carrot, onion, tomato, leek, melon, cucumber, watermelon and lettuce. Nunhems has a global workforce of 1,100 and has locations in more than 20 countries. Dedicated research, breeding and sales teams are active in more than 35 countries ensuring proximity to growers and processors in the worlds main vegetable production areas. 2. Agricultural Seed : Bayer BioScience Pvt. Limited is a forerunner in the arena of seed business in India. Located in Hyderabad, Bayer BioScience is engaged in research, development, production and marketing of high quality hybrid seeds for field crops. BioScience is one of the leaders in the development of hybrid rice varieties that excel in yield, seed quality, taste and cooking grain quality. Products: Arize (Hybrid rice seed) Surpass Hybrid (Cotton seed hybrid) Hybrids of Cereals, Oil seed & Pearl millet(Bajra) Open Pollinated Research varieties of Mustard

Top 6 Products 1.Confidor : Biggest brand in the Indian industry. Most trusted for sucking pest in crops 2.Admire : Excellent insecticide for sucking pest Relatively safe to environment 3.Larvin : Ovicidal, Larvicidal, Adulticidal properties 13

The best spodoptera killer available in the market. 4.Regent : Most preffered brand by sugarcane farmers for termite control. 5.Whipsuper : Excellent grass herbicide for a wide range of crops. 6.Antracol : Modern broad spectrum fungicide

Agrochemical sales of leading global companies (In US $ million)

Company Bayer (German) Syngenta (Swiss) BASF (German) Dow (US) Monsanto (US) Dupont (US) 2003 5394 5421 3569 3008 3031 2024 2004 6120 6030 4141 3368 3180 2211 2005 6719 6307 4097 3094 2910 NA 2006 7023 6617 4162 3153 3124 NA

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(Sources : sites of the different companies)

Seed sales of leading global companies 2006 seed sales US $ millions $4,028 $2,781 $1,743 $1,035 $756 $615 $430 $418 $401 $352

Company 1. Monsanto (US) 2. DuPont (US) 3. Syngenta (Switzerland) 4. Groupe Limagrain (France) 5. Land O' Lakes (US) 6. KWS AG (Germany) 7. Bayer Crop Science (Germany) 8. Delta & Pine Land (US) (acquisition by Monsanto pending) 9. Sakata (Japan) 10. DLF-Trifolium (Denmark)
(Source : Based on 2006 revenues of the companies)

Major Competitors in Indian pesticide industry

Syngenta (Switzerland) Monsanto (US) BASF (Germany) Dupont (US) Rallis India ltd (India)

Major Competitor in Indian seed industry

Mahyco Monsanto 15

Ankur Namdhari seed Advanta Syngenta Indo-American

Corporate Social Responsibility

Child Labour Eradication : Bayer in India has always been committed in its efforts to eradicate child labour. As part of its campaign, several initiatives have been launched by the company to ensure that its policy of no child labour is strictly adhered to. Emergency Response : The Bayer Group worldwide, has always been a firm supporter of humanitarian causes. In India, the company has taken various initiatives on several occasions, when there has been a need for emergency support in times of natural calamities or disasters. Young Environmental Envoy Program : As a research-based enterprise, Bayer places great emphasis on promoting science education for young people and has therefore been committed to promoting youth environmental programs for many years. 16

Education: Bayer believes that knowledge is the most valuable resource, and education, an unparalleled asset. In line with this belief, Bayer have taken made some contributions towards infrastructure and facilities for young students in their education and development. Water conservation & protection : Bayer contribute to water conservation and protection by: Developing stress tolerant and drought resistant crops Protecting water through integrated R&D and product stewardship activities Promoting land management approaches which support improved water management Enhancing water-saving schemes at our manufacturing and other sites Site Neighbourhood : Over the years, Bayer has undertaken various projects to help enhance the quality of life in the neighborhood of its factory sites at Thane and Ankleshwar.

Recent News
Initiate a new programme : Elitia : As part of its efforts to reach out to all its distributors, Bayer CropScience has initiated a new programme called 'elitia' for increased interaction after felicitating its top 20 distributors from all over the country. The company has captured a good market position in key crops such as cotton, rice, pulses, oilseeds, chillies, tea, fruits and vegetables. This year, despite the fact that the industry is facing shortages and cost hikes, the company is doing its best to ensure supplies to elitia customers Seed to Harvest concept : With a commitment to deliver value for its customers, the company has also recently launched the 'Seed to Harvest' concept that offers seeds and crop protection solutions through an integrated platform. This concept has proven to be very successful in delivering a comprehensive crop management solution to farmers.

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Bayer launch Bayer Cares project : for emergency support in times of natural calamities or disasters. Bayer CropScience plan to invest of EUR 3.4 billion in Research & Development through 2012. Bayer Present Young Environmental Envoy Program 2008: Its time again for the Bayer Young Environmental Envoy Program. Every year, two selected students represent India at Bayer AG, Leverkusen (Germany) along with their counterparts from several other countries.

Contact Address
Bayer House, Central Avenue, Hiranandani Gardens, Powai , Mumbai 400076 Tel.: 022-2571 1234 Fax: 022-2570 0147 E-mail : shirin.balsara@bayercropscience.com Website : www.bayer.co.in .

References
www.bayer.co.in www.bayerindia.com

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www.bayercropscience.com www.business-standard.com www.finencialexpress.com www.bayergroupindia.com www.domain-b.com www.monsanto.com www.bayer.com www.basf.com www.syngenta.co.in www.dupont.com

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