Investor's Eye: Sector Report - Agriculture and agri-ancillaries (Reap a rich harvest)

To ensure delivery to your inbox, please add (newsletter@mailer.sharekhan.com) to your address book. 

Investor's Eye [June 13, 2014]  Sharekhan www.sharekhan.com

Summary of Contents SECTOR REPORT   Agriculture and agri-ancillaries       Reap a rich harvest    Key points Since time immemorial India has been known to be an agricultural economy with second ranking worldwide in terms of farm output, providing jobs to more than 50% of the country's population. However, over the last decade and a half, the scenario of India's agricultural sector has deteriorated with a declining share in the gross domestic product (GDP) from an average of 25% in 1998 to 14% in 2014, with an average growth of a meagre 3% in the last ten years.  Incidentally, the new government led by Narendra Modi has acknowledged the issues pertaining to the sector and strongly emphasised the need to unleash a second "Green Revolution" with the agricultural sector as one of the top most priorities of the government. Mr Modi has already led a green revolution in Gujarat where he has achieved a much higher growth in the sector compared with the national average.  Based on the potential reforms and investments in the agricultural sector, we have identified a few niche companies that are likely to benefit from the government's focus on the sector over the next two to three years. (a) Use of higher yielding seeds for productivity: Monsanto India and Kaveri Seed Company  (b) Sustainable increase in productivity with better soil conservation through use of agri inputs: UPL and Dhanuka Agritech (c) Focus on irrigation projects and conservation of water resources through river linking projects: Finolex Industries and Jain Irrigation Systems   Click here to read report: Investor's Eye   Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a position in the companies mentioned in the article.

Regards,  The Sharekhan Research Team

 

This e-mail message may contain information, which is confidential,  proprietary, legally privileged or subject to copyright. It is intended  for use only by the individual or entity to which it is addressed. If you  are not the intended recipient or it appears that this mail has been  forwarded to you without proper authority, you are not authorized to  access, read, disclose, copy, use or otherwise deal with it and any such  actions are prohibited and may be unlawful. The recipient acknowledges  that Sharekhan Limited  or its subsidiaries, (collectively "Sharekhan "),  are unable to exercise control or ensure or guarantee the integrity  of/over the contents of the information contained in e-mail transmissions  and further acknowledges that any views expressed in this message are  those of the individual sender and no binding nature of the message shall  be implied or assumed unless the sender does so expressly with due  authority of Sharekhan . Sharekhan does not accept liability for any  errors, omissions, viruses or computer problems experienced as a result  of this email. Before opening any attachments please check them for  viruses and defects. If you have received this e-mail in error, please  notify us immediately at mail to: mailadmin@sharekhan.com and delete this  mail from your records.