Atul Ltd 24 Annual Report 2023-24 Crop Protection – Retail Product groups: herbicides, insecticides, fungicides, others The products falling under these product groups are used to serve the growing needs of food, feed and fibre. The product groups comprise 52 brands, some of the brands are Zura, Salix, Cyno, Rymix, Amsac, Sindica, covering 61 formulations (23 herbicides, 21 insecticides, nine fungicides, eight bio-stimulants and adjuvants). During 2023-24, sales increased by 4% from ` 197 cr to ` 205 cr. Growth on account of volume was 23%. The Company launched a novel and patented herbicide for sugarcane crop (brand name Sindica) in the last quarter of 2023-24. Besides Sindica, the Company has developed 11 unique patentable formulations, out of which patent was granted for four formulations and published for seven formulations. It is currently generating statutory data for five formulations for securing regulatory approval. The size of the domestic crop protection formulations market is estimated to have grown by 3% from ` 27,200 cr in 2023 to ` 28,000 cr in 2024. Expecting a normal monsoon during the year 2024-25 based on forecasts, the domestic crop protection market is expected to grow at 10% volumetrically, however further price erosion may nullify part of the volume growth leading to overall 5% to 7% value growth. The pivotal factors influencing the market dynamics were the build-up of high-cost inventory at customer end, decreasing input prices and increasing supplies from China. The world market is projected to grow at a CAGR of 4.2% from 2024 to 2032, expecting to reach US$ 98.5 billion by 2032. The CAGR of the agrochemical market in India is expected to be higher than the world average, reaching 6-6.5% by 2027-28, and projected to reach US$ 9.8 bn. This growth is driven by both exports and domestic consumption. India has emerged as the second-largest exporter of crop protection chemicals during 2023-24. The Company will participate in this growth by - i) improving internal efficiencies and working capital management, ii) focusing on value-added products, iii) expanding the regulatory approval footprint and, iv) evaluating investment opportunities in vertical integration. Seasonal aspects may adversely affect the demand. Competition from Chinese sources may impact sales realisations as well as market share. The geopolitical developments leading to supply chain disruptions and high freight costs can impact the profitability of the business. Given that some of these chemicals can be hazardous, due care needs to be taken in their manufacture and use. The Company will continue to grow by - i) pursuing organic growth of the existing portfolio through market development activities, ii) widening the portfolio by way of enhanced cooperation, iii) strengthening the distribution channel and iv) continuing to develop patented novel formulations. Competitive trade practices as well as the launch of new products by competition may have a material impact on growth.
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