Group 7

Terra Agri
Turnaround
Strategy
 Company Snapshot

Key Points
Terra Agri Pvt. Ltd.
● Strong brand recognition in field
(Terra) crops (North & West India) at the
Industry: Agribusiness time of acquisition.
Location: India
● Renowned for R&D capabilities
before the
Size: Mid-sized
acquisition.
Years in Operation: Over 25 years
● Experienced some blockbuster
Parent Company: Diversified
products and strong performance
business group
Products: Hybrid seeds (field crops - after the acquisition.
rice,
● Currently facing stagnation and
declining
wheat, maize; limited vegetable seeds
profitability due to limited
- okra, tomato)
product pipeline.
● New CEO, Shantanu Dasgupta,
tasked with
turning around the business.
E xecutive

Summary
Terra Agri, a mid-sized Indian agribusiness,
faces declining performance due to an
ineffective R&D pipeline and limited
market reach. This presentation outlines
a
two-pronged approach for a successful
turnaround:

● Internal R&D Reinvention

● Strategic Market Entry in
Vegetable Seeds

Current Challenge: Needs a turnaround

strategy to address declining
performance and stagnant product
pipeline.
 Issue Tree Limited R&D Success

Product Existing Products

Losing Market
Portfolio Share
Weakness

Stagnant Toplines

Achieve a turnaround Financial

and regain Performance
profitability Deterioration Declining Profitability

Focus on Core
Strategic Business (Field
Direction Crops)
Uncertainty
Expansion into New
Markets
(Vegetables)
 R ecommendation
Terra should pursue a two-pronged approach combining internal R&D
improvement with strategic market entry in the vegetable seed
segment.

● 1.Conduct
R&D aReinvention:
thorough review of the R&D department: 2. Strategic Market
Pursue a targeted Entry:
acquisition of a smaller
● Identify and address bottlenecks affecting vegetable seed company: This offers a quicker
product development efficiency and effectiveness. solution to enter the market with established
● Consider strategic partnerships with research products and expertise.
institutions or universities: Leverage external ● Conduct a rigorous due diligence process:
expertise and resources to accelerate Carefully evaluate the target company's financial
innovation. health, product portfolio, and cultural fit with
● Refocus R&D efforts on high-potential market Terra.
segments: Align research efforts with the ● Negotiate a favorable deal: Leverage Shantanu's
identified opportunities in the vegetable seed existing relationship with the promoters to secure
market. a fair valuation.
 Key Issues for Discussion
1. R&D Reinvention: 3. Financial Considerations:
>How can we assess the capabilities and >Should Terra explore alternative funding
potential of existing R&D personnel and sources to support its turnaround efforts?
resources?
>What cost-cutting measures can be
>Should Terra consider external partnerships implemented to improve profitability?
or acquisitions to access new products or
technologies?
4. Defining long term vision:
2. Strategic market entry:
>Should Terra remain focused on its core field
>What is the preferred method of entering crop business or explore opportunities in
the vegetable seed market: acquisition, vegetable seeds?
internal development, or a hybrid approach?
>How can Terra ensure sustainable growth
>What are the estimated costs and potential and profitability in the long term?
risks associated with acquiring a vegetable seed
company? Sai bkl
 Thanks!

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