Corporate Finance II

Assignment -1

bcom 3rd year

A2 batch
submitted by –

Tannu 2213684
Tannu kumari 2213650
_Tanu Dalmiya 2213651
tanu Yadav 2213652
tushti purohit 2213657
tanisha Yadav 2213649
v.shruti kumari 2213658
trisha 2213656
Tanvi tomar 2213653
tanya Choudhary 2213654
CONTENTS

o INTRODUCTION

o HISTORY

o EXPANSION STRATEGY

o FUTURE STRATEGY

o INVESTMENT PROPOSAL

o FINANCIAL ANALYSIS

o CONCLUSION
 INTRODUCTION
ECOGROW INNOVATIONS IS A PROMINENT NAME IN THE INDIAN AGRICULTURAL LANDSCAPE,
RENOWNED FOR ITS PIONEERING WORK IN THE SEED INDUSTRY.
ESTABLISHED WITH THE MISSION OF EMPOWERING FARMERS THROUGH INNOVATION AND QUALITY, THE
COMPANY HAS GROWN INTO ONE OF INDIA'S LEADING SEED PRODUCERS.
WE UNDERSTAND THAT SEEDS ARE THE FOUNDATION OF AGRICULTURE, AND OUR GOAL IS TO PROVIDE
FARMERS WITH SUPERIOR, HIGH-YIELDING SEEDS THAT HELP INCREASE PRODUCTIVITY AND
PROFITABILITY.
WITH OVER SEVERAL DECADES OF EXPERTISE, ECOGROW INNOVATIONS HAS DEVELOPED A DIVERSE
AND COMPREHENSIVE PORTFOLIO OF HYBRID SEEDS THAT CATER TO A WIDE RANGE OF CROPS,
INCLUDING RICE, MAIZE, COTTON, SUNFLOWER, AND VEGETABLES. WE FOCUS ON DEVELOPING SEEDS
THAT ARE RESILIENT, ADAPTABLE TO VARIOUS CLIMATIC CONDITIONS, AND OFFER ENHANCED
RESISTANCE TO PESTS AND DISEASES. OUR PRODUCTS ARE DESIGNED NOT ONLY TO INCREASE CROP
YIELDS BUT ALSO TO ENSURE LONG-TERM SUSTAINABILITY AND PROFITABILITY FOR FARMERS
 History of eco grow innovations
pvt ltd
2010s: Global Expansion
1970s - 1980s: 1990s: Expansion 2000s: IPO and 2020s: A Leader in
and Technological
Foundational Years and Diversification National Recognition Innovation
Agricultural Innovation

In its early years, A major turning

Kaveri Seed By the 1990s, The 2010s were As of the 2020s,
point in Kaveri
Limited began as a Kaveri Seed characterized by Kaveri Seed
Seed Limited’s
small-scale seed Limited had firmly rapid global Limited has grown
history came in
production established itself as expansion and a into one of India’s
2007 when the
business, with an a key player in the continued focus on largest seed
company went
initial focus on Indian seed technological companies, with a
public with a
crops like rice and industry. innovation strong presence in
successful Initial
maize. both domestic and
Public Offering
international
(IPO).
markets
ECOGROW INNOVATION PVT LTD’S EXPANSION
STRATEGY
I. Product Portfolio Expansion_
- Developing new seeds and traits
- Expanding crop protection portfolio
- Investing in digital agriculture and precision farming

_II. Digital Expansion_

- Leveraging digital technologies to enhance customer experience
- Developing digital platforms for farmers and partners
- Investing in data analytics and precision agriculture

_III. Partnership and Collaboration Expansion_

- Forming strategic partnerships with industry leaders
- Collaborating with startups and academia for innovation
- Expanding global network of researchers and experts

IV. Capacity Expansion_

- Investing in new facilities and infrastructure
- Upgrading existing facilities for efficiency and sustainability
- Expanding production capacity to meet growing demand

V. Talent Expansion_
- Attracting and retaining top talent in agriculture and technology
- Developing training programs for employees and partners
- Fostering a culture of innovation and sustainability
 FUTURE STRATEGY
WHEN WE LAUNCHED THE GOOD GROWTH PLAN IN 2013, WE HAD
GREAT AMBITIONS TO IMPROVE FARMER PRODUCTIVITY AND
PROFIT, THE SUSTAINABILITY OF AGRICULTURE IN GENERAL AND
OUR BUSINESS OFFERINGS. WE SET SIX SPECIFIC STRETCH
TARGETS TO BE MET BY 2020 – AND WE ACHIEVED MOST OF THEM
EARLY.

OUT OF THIS CAME MEASURABLE BENEFITS FOR FARMERS, THE

PEOPLE THEY FEED AND THE PLANET WE ALL SHARE. AND WE
LEARNED SOME VERY IMPORTANT LESSONS, WHICH HELPED SHAPE
THE ACTIONS WE NOW INTEND TO TAKE IN THE NEXT PHASE OF
SYNGENTA’S GOOD GROWTH PLAN THROUGH 2025.

AMERICAN FARMERS ARE THE ORIGINAL CONSERVATIONISTS,

STEWARDING THEIR NATURAL RESOURCES FOR THE NEXT SEASON
AND FUTURE GENERATIONS. UNDER THE NEW GOOD GROWTH
PLAN, SYNGENTA IS ACCELERATING INNOVATION ON PRODUCTS AND
PROCESSES THAT SUPPORT CLIMATE RESILIENCY AND HELP KEEP
FARMERS PRODUCTIVE, PROFITABLE AND SUSTAINABLE
 PARTNERING FOR PARTNER

 Building on our rich network of strategic sustainability partnerships, we are working to increase the impact we can make together.

Build cohesive partnerships and publish their sustainability objectives

Launch innovation dialogues for inclusive consultation on sustainability
Board level governance of sustainability
Expanding our Impact
Our target is to invest $2 billion in sustainable agriculture breakthroughs by 2025 and to deliver two sustainable technology breakthroughs each year.

We will also strive for carbon neutral agriculture, both on farms and in our operations. We remain committed to enhance biodiversity and soil health
on 7.4 million acres of rural land every year, which we will do by providing technologies, services and training to farmers.

We also commit to reducing the carbon intensity of our operations by 50% by 2030 to support the goals of the Paris Agreement. This commitment
had been validated and endorsed by the Science Based Targets initiative.

Alongside this, we are reinforcing our commitment to help people stay safe and healthy by training 8 million farm workers on safe use every year and
striving for fair labor across our entire supply chain.

We can only achieve our ambitious targets in partnership and in open dialogue about the value of agriculture innovation for farmers, nature and
society, supported by strong Board level governance of sustainability.

Our original Good Growth Plan helped advance the way our entire industry thinks about sustainability. From that success, we intend to continue
leading the way in agriculture for farmers, society and our planet.
INVESTMENT PROPOSAL
1. FINANCIAL PERFORMANCE:
 HISTORICAL FINANCIALS: REVIEW PAST INCOME STATEMENTS, BALANCE SHEETS,
AND CASH FLOW STATEMENTS. LOOK AT REVENUE TRENDS, PROFIT MARGINS, AND
OPERATING EXPENSES.
 KEY METRICS: ANALYZE METRICS LIKE RETURN ON EQUITY (ROE), RETURN ON
INVESTMENT (ROI), AND EARNINGS BEFORE INTEREST AND TAXES (EBIT).
 PROJECTIONS: EXAMINE FUTURE FINANCIAL PROJECTIONS, INCLUDING
REVENUE FORECASTS, EXPECTED PROFIT MARGINS, AND CASH FLOW ESTIMATES.

2. STRATEGIC GOALS:
 GROWTH PLANS: LOOK AT PROPOSED EXPANSION STRATEGIES, SUCH AS
ENTERING NEW MARKETS OR LAUNCHING NEW PRODUCTS.
 INNOVATION AND R&D: ASSESS INVESTMENT IN RESEARCH AND DEVELOPMENT
TO GAUGE FUTURE PRODUCT ADVANCEMENTS AND COMPETITIVE EDGE.
 -OPERATIONAL EFFICIENCY: EVALUATE INITIATIVES TO IMPROVE OPERATIONAL
EFFICIENCIES, REDUCE COSTS, OR STREAMLINE PROCESSES.
As the company wants to expand its business so, Eco.grow innovations is
willing to invest Rs. 40 Lakh. The investment is said to bring an inflow of
1st year = 10 lakh
2nd year = 11 lakh
3rd year = 8.5 lakh
4th year = 9.75 lakh
5th year = 20 lakh
Discount = 8%
NPV = R1 / (1+i)t

Year Flow Project Value Computation

0 50 lakhs 50 lakhs _

1 10 lakhs 925925 20 lakh/ (1.08)1

2 11 lakhs 880000 11 lakh/ (1.08)2
3 850000 680000 850000/ (1.08)3
4 9750000 716912 1075000/(1.08)4
5 20 lakhs 1369863 1150000/ (1.08)5
PV = 925925+880000+680000+716912+1369863 = 4572800
NPV = Inflow-Outflow
= 4572800-40 lakh
= ₹572700/-
NPV is positive so the investment might be profitable
Payback period:-
Years before fully recovered + unrecovered cost at that year / Cash flow during
the year Year Cash flow Cumulative

1 10 lakhs 10 lakh

2 11 lakhs 21 lakh

3 850000 2950000

4 975000 3925000

5 20 lakh 5925000

= 4 + (4000000-3925000)/20 Lakh = 4+(75000)/20 lakh = 4 + 0.0375 =

4.0375 years.
Profitability index (PI) = (NPV + IT)/IT = 572700 + 40 lakh / 40 lakh
3. MARKET POSITION:
 INDUSTRY ANALYSIS: UNDERSTAND THE INDUSTRY LANDSCAPE, INCLUDING MARKET SIZE,
GROWTH RATE, AND KEY TRENDS.
 COMPETITIVE ANALYSIS: IDENTIFY MAIN COMPETITORS AND ANALYZE KAVERI’S
COMPETITIVE ADVANTAGES OR DISADVANTAGES.
 CUSTOMER BASE: REVIEW THE COMPANY’S CUSTOMER DEMOGRAPHICS AND MARKET
SHARE.

4. RISK ASSESSMENT:
 MARKET RISKS: EVALUATE POTENTIAL MARKET RISKS SUCH AS ECONOMIC DOWNTURNS,
REGULATORY CHANGES, OR SHIFTS IN CONSUMER PREFERENCES.
 OPERATIONAL RISKS: CONSIDER RISKS RELATED TO SUPPLY CHAIN ISSUES, PRODUCTION
DELAYS, OR MANAGEMENT CHALLENGES.
 FINANCIAL RISKS: ASSESS RISKS RELATED TO DEBT LEVELS, LIQUIDITY ISSUES, OR
CHANGES IN INTEREST RATES.

5. INVESTMENT PROPOSAL:
 FUNDING REQUIREMENTS: DETAIL THE AMOUNT OF INVESTMENT NEEDED AND THE
INTENDED USE OF FUNDS.
 RETURN ON INVESTMENT: PROVIDE POTENTIAL RETURNS FOR INVESTORS, INCLUDING
EXPECTED ROI AND EXIT STRATEGIES.
 VALUATION: OFFER A VALUATION OF THE COMPANY, SUPPORTED BY VALUATION METHODS
LIKE DISCOUNTED CASH FLOW (DCF) OR COMPARABLE COMPANY ANALYSIS.
C O N C LU S I O N
INVESTMENT PROPOSAL PRESENTS A COMPELLING CASE FOR INVESTMENT, SHOWCASING A
STRONG TRACK RECORD OF GROWTH, INNOVATION, AND SUSTAINABILITY. WITH A
DIVERSIFIED PORTFOLIO OF HYBRID SEEDS, A ROBUST EXPANSION STRATEGY, AND A
COMMITMENT TO ADDRESSING GLOBAL AGRICULTURAL CHALLENGES, THE COMPANY IS WELL-
POSITIONED FOR CONTINUED SUCCESS.

THE PROPOSAL HIGHLIGHTS:

- STRONG FINANCIAL PERFORMANCE AND GROWTH POTENTIAL

- CLEAR STRATEGIC GOALS AND EXPANSION PLANS
- LEADING MARKET POSITION AND COMPETITIVE ADVANTAGES
- IDENTIFIED RISKS WITH MITIGATION STRATEGIES IN PLACE
- ATTRACTIVE RETURNS ON INVESTMENT

ECO GROW INNOVATION PVT LTD EXPANSION STRATEGY ALIGNS WITH THIER GOALS,
FOCUSING ON GROWTH, INNOVATION, AND SUSTAINABILITY. THE COMPANY'S COMMITMENT TO
SUSTAINABILITY, INNOVATION, AND GROWTH MAKES IT AN ATTRACTIVE INVESTMENT
OPPORTUNITY.

OVERALL, ITS INVESTMENT PROPOSAL DEMONSTRATES A STRONG POTENTIAL FOR GROWTH,

RETURNS, AND POSITIVE IMPACT ON THE AGRICULTURAL INDUSTRY, MAKING IT A COMPELLING
INVESTMENT OPPORTUNITY.