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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