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Management Discussion

& Analysis

The Company has made reassessment of the risks and returns of its product groups, the nature of its businesses, the class

of its customers, etc, and accordingly reclassified its product groups into two segments, namely, Life Science Chemicals and

Performance & Other Chemicals. Generally, products used in Agriculture and Pharmaceutical industries are now a part of Life

Science Chemicals segment and other products are a part of Performance & Other Chemicals segment.

22% of the total. Export sales increased by 22% to

152 crores and formed 49% of the total.

World market for crop protection chemicals is

estimated at US$ 44 bn and is growing at about

2%. 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$ 111 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)promotingownbrandsandv)enhancingthepresenceinother

countries,particularlyinAfricaandSouthAmerica.Itwillalsoform

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 realizations. 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, Others

Crop Protection product group mainly comprises Herbicides and

Fungicides and are used by Agriculture industry for protection

of crops. The group comprises 9 products and 54 formulations.

Atul is not currently into Seeds product group which is now

becoming an important input for Agriculture industry.

During the year, sales of the product group increased by

25% to

308 crores. Brand sales which is currently only in

India increased by 10% to

69 crores and accounted for

Segment: Life Science Chemicals

2010-11

2009-10

% change

Sales (

crores)

492

384

Share in total sales (%)

The performance and other details of the product groups are given below:

24 | 25