Commenting on the proposed merger, Atul Ltd managing director Sunil Lalbhai told the Financial Express: "The merger of ACCO and CAL will make CAL a strong and vibrant company. CAL will be able to leverage the brand equity of American Cyanamid and open a new vista for access to new products and technologies from the US parent that is fully committed to doing business in India. The merger will substantially increase sharehloder value of CAL due to business synergy and strategy.

This a rare example of a MNC willing to give up a 100 per cent subsidiary company and share its prosperity with Indian shareholders, particularly at a time when many MNCs in India are setting up a 100 per cent subsidiary companies even though they have listed companies in India. The benefits to CAL through the merger will propel an increase in shareholder value for shareholders of Atul also, given the high level of equity investment of Atul in CAL." " Our agrochemicals business is small but important.

It is growing rapidly. Sales have increased from Rs 16 crore in 1997-98 to Rs 24 crore in 1998-99, a growth of 50 per cent. In the first six months of 1999-2000, sales at Rs 17 crore are up 70 per cent compared with the same period last year. Our vision is to become a leading supplier of agrochemicals and acquisiton of the manufacturing facilities of CAL is a step in this direction. The facilities are excellent and will act as a spring board for adding sales of high quality agrochemicals of over Rs 1000 crore on full capacity utilisation," adds Lalbhai.