Atul Ltd 2017-18

Atul Ltd | Annual Report 2017-18 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 2017-18 2016-17 % change Sales ( ` cr) 1,026 807 27% Share in total sales (%) 34% 31% 3% 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 2017-18, sales increased by 43% from ` 455 cr to ` 651 cr. Sales in India increased by 52% from ` 153 cr to ` 232 cr; bulk sales in India increased by 52% from ` 83 cr to ` 126 cr whereas brand sales which are currently only in India increased by 51% from ` 70 cr to ` 106 cr. Sales outside India increased by 39% from ` 302 cr to ` 419 cr and formed 64% of the total. Increase on account of volume was 35%. Sales increased mainly because of good demand for one of the key herbicides. The Company completed 3 projects and undertook 1 project for implementation. The size of the world Crop Protection Chemicals industry is estimated at US$ 53.7 bn and is growing at about 0.2%. The size of the world Agrochemicals industry is estimated at US$ 61 bn and is growing at about 0.5%. The size of the world Agriculture industry is estimated at US$ 3.2 tn. 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.