Novartis India managing director E Schillinger told shareholders at the annual general meeting in Mumbai on Monday that, in July 1999, the same sales growth momentum could not be maintained resulting in lower cumulative growth of 9 per cent. "This reflects seasonal fluctuation of the agribusiness season in India," he said. Schillinger said the company's crop protection business is likely to be impacted by a government notification requiring the manufacture and the use of phosphamidon 85 per cent formulation to be discontinued after March 2000. Phosphamidon formulations contribute around Rs 45 crore to total sales. The business sector has, however, put in place a strategy to make up for the sales by newer products launched in the last few years. The company's project for the manufacture of profenophosat the Goa site has since been commissioned successfully and will also contribute to the the replacement of phosphamidon sales.

The company's pharma business continues to progress well, growing above industry levels. He said Novartis has signed a memorandum of understanding for a small portion of land at Goregaon which will enable the company realise approximately Rs 6.5 crore.