Atul Ltd 2011-12

29 The Company had, in 2010-11, made reassessment of the risks and returns of its portfolio of products, the nature of its businesses, the industries it serves, etc, and accordingly reclassified its portfolio of products into two Reporting Segments, namely, Life Science Chemicals and Performance & Other Chemicals. Generally, products used by customers belonging to Agriculture and Pharmaceutical industries are a part of Life Science Chemicals Segment and the other products are a part of Performance & Other Chemicals Segment. Segment: Life Science Chemicals 2011-12 2010-11 % change Sales ( ` cr) 604 492 23 Share in total sales (%) 34 33 1 The performance and other details of the Businesses are given below: by 4% to ` 66 cr. Export sales increased by 29% to ` 196 cr and formed 55% of the total. Growth on account of volume was 2%. World market for crop protection chemicals is estimated at US$ 51 bn and is growing at about 3%. Indian market for such chemicals is estimated at US$ 1 bn and is growing at about 5%. There are about 60 major companies which dominate the world marketplace, and there are about 10 companies in India having sales of more than US$ 110 mn. The main user industry, namely, Agriculture, is growing well because of the increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) debottlenecking capacities, ii) introducing new products and new formulations, iii) significantly improving efficiencies, iv) promoting own brands and v) enhancing the presence in other countries, particularly in Africa and South America. It will also form long-term alliances with other companies. Floods or famines will adversely affect the demand. Registration costs are high in certain countries. Fluctuations in foreign exchange will impact sales realisations. Given that some of these chemicals can be toxic, it is essential to take utmost care in their manufacture and use. Crop Protection Products Fungicides, Herbicides, Insecticides, Others Crop Protection Business mainly comprises Fungicides, Herbicides and Insecticides. The products are used by customers belonging to Agriculture industry for the protection of crops. The Business comprises about 13 products and 54 formulations. It is not into Seeds which is now becoming an important input for Agriculture industry. During the year, sales increased by 16% to ` 358 cr. Sales in India increased by 4% to ` 162 cr; bulk sales in India increased by 10% whereas brand sales which are currently only in India decreased Management Discussion & Analysis