Addressing shareholders at the annual general meeting (AGM), chairman Vijay Mallya said, "It would not be unreasonable to expect a payout ratio of 20 per cent to 25 per cent" for the year. The board has recommended a final dividend of Rs 3.5 per share taking the total dividend payable for 1997-98 to Rs 7 per share. This is besides a 1:1 bonus issue announced recently.

Mallya said the companys improved first quarter performance was propelled by a 26 per cent jump in the crop protection business (both volume and price-driven). In 1997-98, the companys market share in crop protection rose to 8.3 per cent from 7.5 per cent in the previous year.

Sale of the Hexit brand of household insecticides to the Godrej group was necessary as it needed huge amounts of advertising andpromotional support and was not too profitable, he said. The brand was sold for Rs 1 crore. AgrEvo would, however, continue to make the active ingredient for the Godrej group.

On shareholder concern over increased doubtful debts, he said the outstandings over six months were down to Rs 2.5 crore as of July 1998 from Rs 16.4 crore. "The overall increase in debtors is essentially due to a large government order for K-Othrine, but there are no bad debt write offs," he said.

The company has already introduced four new products in the first quarter (in the fields of crop production and environmental health) and these were expected to rake in additional sales of Rs 10 crore during the year.

AgrEvo executive vice-chairman and managing director KK Unni said the companys Ankleshwar facility in Gujarat was a sourcing centre for products like arozin, a rice herbicide. Revenues accruing from sourced products was roughly Rs 20 crore, he added.

Capital expenditure for the year was expected to be Rs 7.5 crore andwould be funded via internal accruals. Mallya said the union budget was expected to impact the company to the extent of Rs 1.8 crore, though increases in product prices would cushion AgrEvo to that extent.

On the service charges payable to Hoechst Marion Roussel (HMR), he said this was essentially towards common services (eg utilities) provided by HMR at the integrated site at Ankleshwar.

Meanwhile, shareholders approved all resolutions including the reappointment of Vijay Mallya and KK Unni to the board and the rechristening of the company to "AgrEvo India".