Atul Ltd 2009-10

Corporate Identity Serving Diverse Industries Purpose and Values Overview by the Chairman Operational Highlights Financial Analysis Research and Technology Safety, HealthandEnvironment Serving the Society Directors’ Report Management Discussion andAnalysis Report on Corporate Governance Financial Statements Aromatics Products p -Cresol, p -Anisic Aldehyde, p -Anisic Alcohol and others 2009-10 2008-09 % change Revenues (Rs Crores 284 302 -6 Share in total revenues (%) 24 25 -1 Specialty and Other Chemicals segment The Division manufactures p -Cresol and its downstream products such as p -Anisic Aldehyde, p -Anisic Alcohol, p -Cresidine, etc and by-products such as Sodium Sulphite, Manganese Sulphate, etc. These products are used mainly by Flavour and Fragrance, Personal Care andPharmaceutical industries. In value, sales came down mainly on account of price reduction that followed the reduction in the prices of the raw materials. Exports accounted for 60% of the total sales. The world demand of p -Cresol, p -Anisic Aldehyde and p -Anisic Alcohol is about 63,000 mt, 13,000 mt and 2000 mt respectively. These products are mainly manufactured in India and China; the UK and the USA had large manufacturing facilities to manufacture p -Cresol which have been closed over the last decade. The main users of the products continue to be based in Europe and the USA though some users are based in Africa and Australia. The demand of p -Cresol, p -Anisic Aldehyde and p -Anisic Alcohol is steadily increasingwith the growth in Flavour and Fragrance, Personal Care and Pharmaceutical industries. It is essential to profitably sell the main by-product, Sodium Sulphite. China is the only other country which may install new capacities in these products. Unexpected fluctuations in foreign exchange will impact the realizations. The Division will endeavour to maintain and further strengthen its global leadership in p -Cresol, p -Anisic Aldehyde and p -Anisic Alcohol by cost reduction, expansion and by significantly widening and deepening its customer base. It will also introduce new value added products which have manufacturing | marketing synergy. The Division is expected to sustain a healthy rate of growth in the foreseeable future.