Unisem Agritech Limited is engaged in developing, processing, and selling hybrid seeds for vegetables, flowers, and field crops. It earns revenue by producing breeder seeds, converting them into foundation seeds, and further multiplying them into commercial seeds for farmers across diverse agro-climatic zones. Its key products are tomato, chilli, watermelon, bhendi, maize, jowar, paddy and other vegetable seeds, designed for higher yield, disease resistance, and improved crop quality.

The company’s major clients include distributors and dealers across Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Uttar Pradesh, Odisha, Bihar and export markets like Botswana. Its main processing and manufacturing facility is located at Ranebennur, Karnataka, where commercial seeds undergo cleaning, grading, processing, and quality testing before packaging and dispatch.

The company has a wide product portfolio of vegetable seeds, field crop seeds, and flower seeds, covering crops like tomato, chilli, watermelon, maize, paddy, jowar, bhendi, beetroot, cabbage and more. These products support the early-growth to maturity phases of the crop lifecycle, enhancing farmer productivity. Revenue contribution comes majorly from vegetable seeds (₹5,806 lakh in FY25), followed by field crops (₹934 lakh) and flower seeds (₹164 lakh). Order execution is supported by a strong distribution base across 20+ states.

Unisem plans to expand into new crops, grow its presence in national and international markets such as Nepal, Sri Lanka, and Botswana, and strengthen brand visibility. It also aims to scale operations and improve cost efficiency. No mergers are reported, but the company’s capex plans focus on capacity expansion and operational enhancement to support future growth.

Employees & Bankers

As of Sep 30, 2025, the company had 131 employees. The Banker to the Company is Federal Bank Limited.

MANAGEMENT & VISION

The management aims to grow the company through entry into new crops, expansion across domestic and international markets, and strengthening dealer networks. Their near-term focus is on leveraging high-growth seed categories, improving operational efficiency, and enhancing brand visibility. Long-term targets include scaling hybrid seed development, modernising facilities, and achieving higher revenue growth through product diversification. Capex and expansion are expected to be funded through internal accruals, IPO proceeds, and improved operating cash flows.

INDUSTRY OVERVIEW

India’s seed industry is a critical pillar of agricultural productivity and national food security. High-quality seeds directly influence germination, crop vigor, and yield. The industry has grown steadily with increasing awareness of hybrid varieties. As per national agricultural GVA data, agriculture continues to contribute significantly to India’s GDP, supporting long-term seed demand. Global seed markets are driven by rising population, hybrid adoption, and climate-resilient varieties. Indian and global seed industries are expected to grow steadily due to higher mechanization, improved storage, and modern R&D practices.

RISK FACTORS

1. Dependence on Key Crops

A large share of revenue comes from vegetable seeds, especially tomato, chilli, and watermelon. Any decline in demand, crop failure, or market competition in these categories may significantly impact revenue stability.

2. Agro-Climatic Vulnerability

Seed production and farmer demand depend heavily on rainfall, temperature, soil conditions, and pest patterns. Unfavourable weather or disease outbreaks can affect production, quality, and sales cycles.

3. Regulatory Compliance Risks

The company must comply with the Seeds Act, Seed Rules, and Seed Control Orders. Any violation, delay in renewals, or regulatory changes could disrupt operations or restrict sales.

4. Inventory & Storage Risk

Seed viability is highly sensitive to moisture, temperature, and pests. Inefficiencies in storage or logistics may deteriorate seed quality, affecting marketability and brand reputation.

5. Dealer Dependency

Sales depend on long-standing relationships with dealer networks across states. Any disruption, default, or reduction in dealer performance could weaken distribution strength and reduce sales volumes.

6. Raw Material Supply Risk

Breeder and foundation seed production relies on external growers. Any supply disruption, crop failure, or quality inconsistency can delay commercial seed output and increase production costs.

KEY STRENGTHS & OPPORTUNITIES

1. Diverse and Fast-Growing Product Portfolio

The company offers a wide range of hybrid vegetable, flower, and field crop seeds, reducing concentration risk. Vegetable seeds alone grew from ₹4,805 lakh in FY24 to ₹5,806 lakh in FY25, strengthening revenue stability.

2. Strong Multi-State Distribution Network

Unisem serves farmers across 20+ Indian states and export markets. Its highest sales come from high-demand regions like Karnataka, Telangana, Madhya Pradesh, and Odisha, ensuring balanced geographic revenue distribution.

3. Cost-Efficient Operations and In-House Processing

Processing seeds at its Ranebennur facility enables strict quality control and economies of scale. Improved operational efficiency has supported EBITDA margin improvement from 6.59% (FY23) to 10.28% (FY25).

4. Expanding International Presence

The company has begun exporting seeds to Botswana and plans to enter Nepal and Sri Lanka. This expands market reach, reduces domestic dependency, and opens higher-margin global opportunities.

5. Strong Revenue Growth Track Record

Revenue grew from ₹4,691 lakh in FY23 to ₹6,907 lakh in FY25, supported by continuous product expansion, hybrid improvements, and market penetration. Consistent financial growth enhances investor confidence.

6. High-Potential R&D-Driven Business Model

The hybrid seed development approach, breeder-to-foundation-to-commercial production cycle, and focus on variety improvement provide long-term competitive advantage and strong product differentiation.