Sunday, January 3, 2010

>Bayer CropScience Ltd (HDFC SECURITIES)

Company Background:
Bayer CropScience Ltd (BCS) is a cropscience company having crop protection production facilities at Himatnagar and Ankleshwar (both in Gujarat) where it manufactures a variety of agrochemical like fungicides, insecticides and herbicides. It had a plant at Thane, which has been shut down and the facilities have been moved to the Ankleshwar plant. The Himatnagar plant also caters to export related agrochemicals required by its Asia-Pacific and European group companies. Post the acquisition of Aventis Cropscience Limited worldwide in 2001, BCS has become the leader in the Crop Protection business in India. BCS is a 71% subsidiary of the Euro 35bn Bayer AG, Group, which is a world leader in Agrichemicals. BCS is a leader in the Indian crop protection Sector with a market share of 17%. Other large shareholders include LIC, Birla Sun Life Insurance Company Ltd and Bajaj Aliianz Life Insurance Company Ltd, which hold 3.67%, 2.51% and 2.48% respectively in BCS.

Bayer AG acquired Aventis CropScience globally in 2001 and became a global leader in crop protection, pest control, seeds and plant biotechnology. With a sizeable existence in 122 countries and 22,000 dedicated employees, BCS remains a large global player. BCS is divided into 3 business groups: Crop Protection, Environmental Science and BioScience. BCS as a global innovator and market leader in its industry believes that its technological and commercial expertise entails a duty to contribute to Sustainable Development.

Crop protection:
This segment ensures a secure yield by giving protection from seed planting through to harvest. During its life cycle a crop will encounter many enemies that can even destroy an entire harvest: pests, weeds, fungi. Researchers in Crop Protection are committed to preventing this damage. BCS’s goal in this business is to secure harvests for farmers without creating a burden on the environment.

Principal products and brands in crop protection
Insecticides (Confidor®/ Admire®, Calypso®, Decis®, Temik®, Oberon®)
Fungicides (Antracol®, Baycor®, Folicur®, Monceren®)
Herbicides (Atlantis®, Basta®, Topstar®, Whip Super®)
Seed treatment (Gaucho®, Raxil®)

Environmental Science and Professional Pest Control:
The Bayer Environmental Science (BES) is a pioneer in the field of public health, being a major contributor in this segment since several years. The business areas covered by BES, are diverse in order to address the specific needs of the customers, covering three major segments: Vector Control, Professional Pest Control and Green Industry.

The commitment of BES is to consistently deliver high quality research products for the control of insect pests of public health. Such products include pesticides to manage malaria vectors, cockroaches, rodents, termites, stored grain pests, houseflies and other pests in general.

BioScience is a part of BCS, and is a global player in research, development and marketing of high quality seeds and innovative plant-based solutions derived from modern breeding and plant biotechnology. BioScience offers an integrated portfolio of high quality seeds, trait technologies and high performance crop protection products. BioScience activities are focused on three areas: Vegetable Seeds, Agricultural Seeds and Research activities into novel plant-based solutions for agriculture, nutrition, health and biomaterials. Bayer Bioscience, headquartered in Hyderabad India has about 400 employees, and has research, production and an extensive sales network spread across the country.

To read the full report: BAYER CROP SCIENCE