Atul Ltd 2015-16

49 Management Discussion and Analysis Atul Ltd has 2 reporting segments, namely, Life Science Chemicals and Performance and Other Chemicals. Life Science Chemicals Segment Particulars 2015-16 2014-15 % Change Sales ( ` cr) 748 676 11% Share in total sales (%) 31% 27% 4% Life Science Chemicals Segment consists 2 Sub-segments (interchangeably called as Businesses), namely, Crop Protection and Pharmaceuticals and Intermediates. Crop Protection Product groups: Herbicides, Insecticides, Fungicides, Others The products falling under these product groups are used by customers belonging to Crop Protection Chemicals and Agriculture industries. The product groups comprise about 20 products and 40 formulations. 2,4-D, Indoxacarb and Isoprothiolane are some of the key products. During 2015-16, sales increased by 22% from ` 342 cr to ` 418 cr. Sales in India decreased by 16% from ` 194 cr to ` 163 cr; bulk sales in India decreased by 14% from ` 73 cr to ` 63 cr whereas brand sales which are currently only in India decreased by 17% from ` 121 cr to ` 100 cr. Sales outside India increased by 72% from ` 148 cr to ` 255 cr and formed 61% of the total. Increase on account of volume was 34%. Sales increased mainly because of good demand for one of the key herbicides. The Company completed 3 projects and undertook 1 project for implementation. The size of world Crop Protection Chemicals industry is estimated at US$ 52 bn and is growing at about 4%. There are about 60 major companies which dominate the world marketplace. The size of world Agriculture industry is estimated at US$ 3.35 tn and is growing at about 3%. The main user industries, namely Crop Protection Chemicals and Agriculture, are growing well because of the need to feed a growing population under constraints of related resources. The Company will participate in this growth by i) building a strong sales and marketing organisation and broadening and deepening its presence in other countries, particularly in Africa and South America, ii) promoting its brand sales, iii) improving its manufacturing andworking capital efficiencies, iv) generating and adding capacities and v) introducing new products and formulations. Floods or famines may adversely affect the demand. Fluctuations in foreign exchange may impact sales realisations. Given that some of these chemicals can be toxic, it is essential to take due care in their manufacture and use. Registration costs are high in certain countries.