Unisem Agritech Ltd (BSE SME)

IPO Details

Key Performance Indicators (KPI)

Company Financial (In ₹Crore)

Peer Comparision (Valuation)

Peer Comparision (Financial Performance)

About Company

The company’s operations encompass the entire seed cycle—developing hybrid seeds, producing foundation seeds with selected traits, and multiplying them into commercial seeds suitable for diverse agro-climatic conditions such as varying water availability, soil types, and crop durations. For large-scale production, Unisem Agritech partners with contracted seed growers and supervises their fields to ensure adherence to prescribed cultivation practices. After harvest, seeds undergo stringent quality checks before being processed at the company’s facility in Ranebennur, Karnataka. The processed seeds are then packaged and distributed through a dealer network across multiple states.

With over eight years of operational experience and more than two decades of combined promoter expertise, the company remains committed to delivering high-quality hybrid seeds to farmers. Its dedicated R&D team continues to work on innovation, ensuring the development of products that address evolving agricultural needs.

Strength

Wide Product Portfolio: The company offers a broad range of seeds, including 193 vegetable seed variants, 10 flower seed variants, and 8 field crop seed variants. This extensive portfolio enables customers to fulfil all their seed requirements from a single source, strengthening existing relationships and attracting new customers. The company also has the capability and resources to expand into additional product categories in the future.

Experienced and Diverse Workforce: A team of 161 individuals with varied experience and age groups contributes to the company’s operational strength. This diversity helps in efficiently managing customer needs across different segments, expanding market reach, and reinforcing the company's industry position.

Integrated Seed Processing and Storage Facility: The company operates an integrated seed processing unit equipped with sorting, grading, and packing machinery, along with an in-house warehouse for seed storage. This setup ensures efficient handling of seasonal demand and timely supply. The facility’s strategic location and strong logistics access further support smooth distribution.

Weakness

High Dependence on a Single Product Category: The company derives a major portion of its revenue from vegetable seed sales, making the business highly vulnerable to fluctuations in demand. Any adverse impact arising from climate change, government policies, pricing pressures, competition, or availability of alternative seeds could materially affect revenue, profitability, and overall business performance.

Reliance on Third-Party Seed Growing Farmers: Seed production is carried out through contractual farmers, and the company depends on their consistency, practices, and alignment with quality standards. Any issues such as non-compliance, conflicting interests, or poor execution by these farmers could disrupt production, affect sales, harm cash flows, and expose the company to reputational risk.

High Working Capital Requirements: The business requires significant working capital, mainly tied up in inventories and receivables due to a long collection cycle. Any inability to maintain adequate working capital levels may adversely affect operations. As the company scales, working capital needs are expected to increase further, given the high input requirements for seed production, including foundation seeds, pesticides, fertilizers, and electricity.