49 / 168
47
Management Discussion and Analysis
The businesses of Atul Ltd are classified into two reporting segments, namely, Life Science
Chemicals and Performance and Other Chemicals.
Life Science Chemicals Segment consists mainly products of Crop Protection and Pharmaceuticals and Intermediates
Businesses:
2014-15
2013-14
% Change
Sales (
`
cr)
676
738
(9)%
Share in total sales (%)
27
32
(5)%
Life Science Chemicals Segment
Crop Protection
Product Groups: Fungicides, Herbicides, 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 15 products and 48 formulations.
2,4-D, Indoxacarb and Nicosulfuron are some of the key products.
During 2014-15, sales decreased by 21% from
`
433 cr to
`
342 cr. Sales in India decreased by 2% from
`
197 cr to
`
194 cr;
bulk sales in India decreased by 22% from
`
94 cr to
`
73 cr whereas
brand sales which are currently only in India increased by 17% from
`
103 cr to
`
121 cr. Sales outside India decreased by 37% from
`
236 cr to
`
148 cr and formed 43% of the total. Decline on account
of volume was 20%. Sales decreased mainly because of lack of demand for one of the key herbicides. Sales from new products
and formulations were
`
4 cr. The Company completed 3 projects and undertook 1 project for implementation.
The size of world Crop Protection Chemical industry is estimated at US$ 56 b and is growing at about 3.5%. There are about
60 major companies which dominate the world marketplace. The size of world Agriculture industry is estimated at US$ 3.02 t
and is growing at about 1.50%.
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 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.