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Atul Ltd | Annual Report 2016-17
Management Discussion and Analysis
Atul Ltd has identified 2 reporting Segments, namely, Life Science Chemicals and Performance and
Other Chemicals.
Life Science Chemicals Segment
Particulars
2016-17
2015-16
% change
Sales (
`
cr)
807
737
9%
Share in total sales (%)
31%
31%
–
Life Science Chemicals Segment consists of 3 Sub-segments, namely, Crop Protection, Pharmaceuticals and Intermediates and
Aromatics - I.
Crop Protection
Product groups: Herbicides, Insecticides, Fungicides, Others
The products falling under these product groups are used by customers belonging to Agriculture and Crop Protection Chemicals
industries. The product groups comprise about 20 products and 40 formulations. 2,4-D, Indoxacarb and Isoprothiolane are
some of the key products.
During 2016-17, sales increased by 8% from
`
422 cr
to
`
455 cr. Sales in India decreased by 8% from
`
166 cr to
`
153 cr; bulk sales in India increased by 20% from
`
69 cr
to
`
83 cr whereas brand sales which are currently only in
India decreased by 28% from
`
97 cr to
`
70 cr. Sales outside
India increased by 18% from
`
256 cr to
`
302 cr and formed
66% of the total. Increase on account of volume was 22%.
Sales increased mainly because of good demand for one of
the key herbicides. The Company completed 2 projects and
undertook 1 project for implementation.
The size of the world Agriculture industry is estimated at
US$ 3.2 tn and is growing at about 3%. The size of the world
Crop Protection Chemicals industry is estimated at US$ 56
bn and is growing at about 5%. There are about 60 major
crop protection chemical companies which dominate the
world marketplace.
The main user industries, namely Agriculture and Crop Protection Chemicals, 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 and working
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.