News & Updates
'Atul Ltd acquires India’s leading
Rubber & PU based adhesive brand Polygrip'.
Mumbai, June 18, 2010:Atul Ltd, a Lalbhai Group Company has acquired Polygrip – India’s leading Rubber & PU based adhesive brand. Polymers Division of Atul that manufactures and markets Epoxies, Adhesives and Sealants under the brand LAPOX has bought Polygrip brand. This acquisition will give Atul a ready access to Rubber and PU based adhesives market in India. The synergetic acquisition by Atul - a large manufacturer with growing marketing network will boost confidence of the existing customers of Polygrip.
Mr Rajesh Bhasin, President, Polymers, Atul while commenting on this acquisition said, “Polygrip compliments the current Lapox range of adhesives and there will be no cannibalisation of any of our existing products. We will focus on strengthening the Polygrip brand in the Industrial| Institutional business by enhanced focus in the various market segments such as Automobile, Footwear, Furniture, Upholstery, Ducting, Carpet, Luggage, OEMs & others by upgrading the product portfolio and introducing customised products for various industries. On the retail front we plan to focus on the Hardware | Foam retail markets which offer immense potential for growth for Polygrip.”
Mr Kirti Mehta, the Founder of Polygrip brand said, “Polygrip was scouting for a strategic partner to grow in Indian and overseas markets. Atul will utilise the LAPOX sales and marketing network to promote Polygrip in the retail markets across India. There are plans to bring in more eco friendly products such as water based Rubber and PU adhesives which cater to the stringent norms. I foresee high growth with Atul.”
Talking about the Brand business of Polymers Division, Mr Rajesh Bhasin, President, Polymers, Atul informed, “We currently have 20 Brands, 30 Products and 93 SKUs. We have over 250 distributors strategically located all across India. In the next three years Brands business of Polymers Division of Atul alone will have sales crossing Rs 100 cr. Our Product portfolio will have more than 50 brands. The Pan India distributor network will be 700 plus strong and the sales staff would be more than 200. We are expanding into International markets as well. I am confident that by the year 2013-14 Lapox will be a dominant brand in India.”
Atul has strong competencies in R&D. Manufacturing capabilities of all major chemical process are available at Atul. It ensures effective technical support with motivated and committed manpower. Polymers Division offers world class quality and range in Epoxy, Adhesives & Sealants at competitive prices. Acquisition of Polygrip adds another feather in the cap of LAPOX and an entry into a new vertical of Rubber & PU based adhesives.
About Polygrip:
Polygrip is a 34 year old brand name that started off as a make to order industrial product. The brand was founded by Mr Kirti Mehta, a B Sc (Chemistry) with Masters in Polymer Chemistry from the State University of NY, Plattsburg, USA. Polygrip has more than 50 different industrial grades making it one of the most versatile and complete range of Rubber & PU Adhesives.
Polychloroprene based Rubber adhesives are popularly known as contact adhesives. There are two major product groups Solvent based rubber adhesives and Solvent based PU adhesives. Rubber adhesives are used to Bond substrates such as Leather, Foam ,Rubber in Automobile, Footwear, Furniture, Upholstery, Ducting, Carpet, Luggage, Engineering and many more industries.
Rubber and PU based adhesive market is estimated to be around Rs. 500 Crore | annum in India for these applications. Polygrip has a market share of 10% in the market segments that it operates in. The customer turn around percentage is as low as 0.5%. So it can be proudly said that ‘Customers Stick to Polygrip’.
With a PAN-India network of almost 25-30 distributors, Polygrip range of adhesives are available in most parts of the country and accepted very well as one of the top three brands of Rubber and PU adhesives.
About Atul Limited :
Atul Ltd is a member of Lalbhai Group - one of the oldest business houses of India. Atul Ltd provides innovative chemistry and manufacturing solutions to Agriculture, Automobile, Construction, Cosmetic, Food & Beverage, Fragrance, Marine, Packaging, Paper, Pharmaceutical, Textile and other industries.
Atul Ltd has seven Businesses - Aromatics, Bulk Chemicals & Intermediates, Colors, Crop Protection, Floras, Pharmaceuticals & Intermediates and Polymers. Atul Ltd - incorporated in 1947 is spread over 1400 acres of land. Its registered office is in Ahmedabad and its corporate headquarters are located in Atul, Gujarat.
The Company is listed on the bourses (NSE: ATUL, BSE Code: 500027) in India and has over 35,000 shareholders. Atul also has offices in the USA, the UK, Germany, China and Vietnam that service its international customers.
The Group is also strongly committed to serve the society in the fields of education, health as well as culture.
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For Media Queries:
Yogesh Kolte | Roopa Iyer
Corporate Communications Department, Atul Ltd
Cell: +91 98203 09121
Mail: yogesh_kolte@atul.co.in
'Atul Reports Higher Profit result for Quarter4'.
Atul Reports Higher Profit result for Quarter4
PBT at Rs82 cr, up 78%
Mumbai, May 13, 2010:Atul Ltd, a member of Lalbhai Group, announced its unaudited results for the year ended March 31, 2010. During the 12 months ended March 31, 2010, sales volumes increased by 18%. However due to steep reduction in prices of raw materials and the consequent fall in selling prices, the sales at Rs1168 cr (including exports of Rs510 cr) registered only a negligible growth of less than 1%. Mainly because of a lower loss on account of exchange rate differences, the Profit before tax (PBT) grew by 78%, from Rs46cr to Rs82cr.
Mr Sunil S Lalbhai, CMD, shared his analysis of performance and strategy. Excerpts are given below.
“The businesses mainly consolidated the spurt in profitability achieved during 2008-09 with the exception of Polymers which experienced a strong rebound and Colors which grew about 10% and cut losses. The company achieved a robust cash flow from operations and reduced its borrowings by Rs 64cr to Rs 284cr which has substantially improved its leverage ratios and its capacity to raise finance for expansion and acquisitions.”
“While the PBT from operations (before loss on account of exchange rate differences) was only marginally higher as compared to the previous year, the company consolidated its position and held on to its higher level of profitability achieved in 2008-09. In a year when despondency and uncertainty plagued its key export markets the company steadfastly stuck to its long-term approach and diligently worked on several initiatives which will have a salubrious and underpinning effect in the years to come. The company improved its efficiencies through yields and de-bottlenecking, reduced pollutants and focused on obtaining better realizations for its products. The company has commenced formalizing its Values which in turn will help build a more cohesive team and provide a uniform experience to the world outside.”
The emphasis of the management is to further enhance the strategic thrust of the different businesses and quickly grow through expansion, related diversifications and acquisitions with good strategic fit. It will further sharpen its PMS and institute world-class systems in its operations and MIS for enhancing response and speed. The steps taken by the company to secure long-term, profitable growth will boost stakeholder value.
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For Media Queries:
Yogesh Kolte | Roopa Iyer
Corporate Communications Department, Atul Ltd
Cell: +91 98203 09121
Mail: yogesh_kolte@atul.co.in
Dhvani issue March,2010
Atul Club Newsletter- April 2010
Quarterly Results For December 2009
'News Release for Atul Profit Reports of Quarter3'.
Atul Reports Lower Profit result for Quarter3
January 28, 2010, Mumbai:Atul Ltd of Lalbhai Group has announced its unaudited results for the quarter ended Dec 31, 2009. While sales grew by 10% to Rs308 cr, profit before tax declined by 56% to Rs8 cr. The lower profit was mainly because of write-off of Rs10 cr of slow and non-moving inventories; according to the Company, such purging will also help to gear up to meet the contemporary global standards in Reporting particularly by way of compliance with IFRS in future.
During the 9 months ended Dec 31, 2009, profit before tax improved by 28% from Rs40 cr to Rs51 cr, mainly due to a sharp reduction in loss on account of exchange rate difference and lower interest charge. Profit after tax was for the period was Rs38 cr as against Rs33 cr in the same period last year. Exports at Rs356 cr constituted 42% of sales.
Mr Sunil Lalbhai, Chairman & Managing Director of Atul, said that sales and consequently profit have suffered during this period, but conveyed that he was confident of sustained improvement in its performance despite difficulties. He mentioned that the Company is making investments in expanding some of its key products and businesses and taking measures to enhance efficiencies and market presence and strengthen internal systems and processes.
About Atul Ltd:
Atul Ltd is a member of Lalbhai Group - one of the oldest business houses of India. Atul Ltd provides innovative chemistry and manufacturing solutions to the Agriculture, Automobile, Construction, Cosmetic, Food & Beverage, Fragrance, Marine, Packaging, Paper, Pharmaceutical, Textile and other industries. Atul Ltd has seven Businesses namely Aromatics, Bulk Chemicals & Intermediates, Colors, Crop Protection, Floras, Pharmaceuticals & Intermediates and Polymers. Atul Ltd - incorporated in 1947 is spread over 1400 acres of land. Atul's registered office is in Ahmedabad and its corporate headquarters are located at Atul, Gujarat.
For Media Queries:
Yogesh Kolte
Head, Corporate Communications
Atul Limited
Mobile:+91 98203 09121
Mail: Yogesh_Kolte@atul.co.in
'News Release for Atul Profit Reports of Quarter2'.
Atul Reports Higher Profit result for Quarter2
Mumbai, October 24, 2009: Atul Ltd, a Member of Lalbhai Group, announced its unaudited results for the Quarter ended Sep 30, 2009. During the 3 months, even as sales dipped by 21% to Rs273 cr, PBT (profit before tax) improved from Rs22 cr to Rs28 cr. During the first half the PBT improved from Rs22 cr to Rs43cr and the profit after tax was up from Rs18 cr to Rs33 cr.
Sales were lower mainly on account of lower exports particularly to the countries affected by recession and because of lower price realizations. The surge in profit in the first half was mainly due to absence of the adverse impact of foreign exchange that had ruined the performance of the corresponding period of the previous year and lower interest cost.
Mr Sunil S Lalbhai, Chairman & Managing Director, conveyed that the Company was able to sustain the performance during H1 in spite of unfavourable market conditions, particularly in Europe; he added that lower price realizations were mainly on account of lower price of crude oil and lower demand. He mentioned that Colors and Polymers businesses have shown improvement in their performance during Q2 and the trend is expected to continue while Bulk Chemicals and Intermediates business deteriorated on account of lower demand; he added that Pharma Intermediates business also declined in performance because of lower demand of some non-pharma products finding applications in Aerospace Industry. He said that the Company has an action plan in place which comprises enhancing market reach, improving efficiencies, productivity and throughputs, stabilizing the new ERP systems across all its businesses and functions and introducing new value added products. He added that the Company is significantly improving its already well conceived manufacturing sites, strengthening its HR processes and formalizing Values. With multifarious initiatives in place, he expressed that the 62 year-Company is looking forward to the years ahead to take up the emerging opportunities and thus improve shareholder value and serve the society.
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