Ladies & Gentlemen,

I extend to all of you a warm welcome to the 53rd Annual General Meeting of your Company.

Before I review the highlights of your Company's performance for the year ended March 31, 2003, let me put in perspective the overall business environment in the country.

On the economic front, Gross Domestic Product grew at a reduced rate of 4.4% in 2002-2003, down from 5.60% recorded in 2001-02. This drop in growth could be solely attributed to the poor monsoon resulting in a 3.2% decline in agricultural production in 2002-03 compared to 5.7% growth in 01-02. This drop in agriculture production has offset the improvement in the growth performance of industry and services. At the same time macro-economic stability continues in terms of low inflation, improved currency market conditions and comfortable forex reserves.

There is a clear understanding within the Government that in order to alleviate poverty in the country, greater investment and focus is required in the agricultural sector which continues to employ 65% of India's workforce yet contributes only 22% of India's GDP.

India's biotech industry set to bloom :

The Indian biotechnology industry has the potential to make its presence felt in the global economy. Gartner, who follows the biotech industry, estimates that the Indian biotech industry had an estimated turnover of $2.5 billion last year. Growing at 13.5% a year, the biotech industry's turnover is expected to touch nearly $7 billion by 2010.

The Government has recognized the importance of the biotech industry and is acting positively to develop a strong regulatory system which will help Indian farmers get the most advanced technology necessary to help them continue to enable India being self sufficient in food production, tap export markets and increase its share in the country's GDP.

Agriculture Industry Scenario/ prospects:

Both the crop protection industry and seeds industry play a crucial role in the agriculture sector. India has over 400 million acres under cultivation, and large per cent of our population depends on agriculture. With the steady increase in the population, means that we must improve crop yields to feed a growing population. Technology sells itself. The farmers' acceptance of modern technologies in farming is also a positive indication for the growth of industry. Again, a good monsoon is always crucial player in the growth of the agriculture sector and related industries. The Indian Meteorological Department has, in July, predicted a reasonably good monsoon for this year.

A strong desire to work closely with the farmers lies at the core of our philosophy.

As you are aware, Monsanto is focused on three business areas - herbicides, seeds and traits. These are the global areas of strength for our parent - Monsanto Company, USA. But, we are increasingly moving away from a product-specific approach to one focusing on "crop solutions". That is, rather than launch insecticide or herbicide products on a one-off basis, we try to offer whatever it takes to cater to a single focus crop. We have identified rice, wheat, cotton and corn as our key focus crops.

The Year gone by:

Your Company has done exceedingly well in 2002-03, to have grown its Profit After Tax by 63 per cent even when the top line of the Company was stagnant in a difficult year for the whole industry. Such improvement was not due to any extraordinary items but rather due to a significant improvement in operational efficiencies. This excellent performance has been due to a change in the sales mix in favour of the higher margin seeds business. Contribution by the seeds business increased to 32 per cent in 2003 from 23 per cent last year. The seeds business will continue to be an important growth driver in the next few years with exports sales also contributing significantly.

However, the change in sales mix will not reduce the cyclicality and vulnerability of the business since both business segments are driven by the same markets and customers.

The Year in Progress:

We have been growing at a good pace during the last few years. The key challenge going forward is whether we could sustain this earnings growth and high profitability.

The Board of Directors of your Company met today in the morning to adopt the financial results of the 1st quarter of the current financial year 2003-04. I am pleased to report that the year has begun well for us and we are seeing a continued growth in the 1st Quarter. Our Sales Revenues have improved by 11% to Rs.125.95 Crores and our PAT has gone up by 42% to Rs. 24.77 Crores.

As we look ahead, there could be some pressures on our margins if the monsoons are deficient in some of our key markets in Karnataka and Andhra Pradesh and if competition continues to exert pressure on our chemistry business.

Acknowledgements:

We are grateful to all our shareholders for their continued support and interest in the Company. I would also like to place on record my sincere thanks to all my colleagues on the Board for their support and valuable guidance. We would also like to thank our employees, customers, suppliers and distributors who have supported our efforts all these years.

I would also like to acknowledge the support we have received from Monsanto Company, USA and would like to thank them for their confidence and guidance in building our business in India.

Thank you once again.

BRETT BEGEMANN
Chairman
25th July 2003.