Management has indicated that the global agrochemical demand is still sluggish. Currently, the global agrochemical prices, though stable QoQ, are still lower YoY. In India, the rabi crop is promising because it is dependent mainly on water reservoirs. Management
has guided that water reservoir levels across the country are reasonably good, including North-east India which has been the most badly hit by poor monsoon.
Rallis is positive about H2FY10 on the back of promising rabi crop prospects that has been supported by decent water reservoir levels across India. But management has indicated that all the global players have offloaded their inventories into the market in H1FY10
due to worsening industry scenario. It will result in higher sales returns in Q3FY10 for Rallis as well as across the industry.
The company also has plans to expand its current capacity by ~25%. Both these expansions will support the company to grow into the export market as Rallis has entered into contract manufacturing agreements in FY09