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 Products Epoxy Resins, Hardeners, Rubber Adhesives, Polyurethane Adhesives and others 2009-10 2008-09 % change Revenues (Rs Crores) 223 194 15 Share in total revenues (%) 19 16 3 The Division manufactures epoxy resins and hardeners and formulations thereof and other components such as air release agents, reactive diluents, rheological modifiers, wetting agents, etc. These products are used in Aerospace, Automobile, Construction, Defence, Electronics,Marine, Paint and Coatings, Wind Energy industries. In value, domestic sales increased by 22% and exports reduced by 19%. Brand sales were up from Rs 12 crores to Rs 18 crores. The world market for epoxy resins and hardeners is about USD20 bn and is growing at the rate of about 1% per year. The world leaders, generally, are backward integrated and manufacture their own Epichlorohydrin and Bisphenol-A. Furthermore, they have a much higher manufacturing capacities which range from 1,00,000 tpa to 2,00,000 tpa. In India, the Division is amongst the two largest manufacturers. Almost the entire requirement of Bisphenol-A is met by imports. Even though the world market for epoxy resins and hardeners is not growing significantly, the demand in India is good being amongst the fastest growing economies of the world. The consuming industries particularly Automobile, Construction and Paint and Coatings are growing rapidly. Cheaper imports will continue to be the main competitor, and this will keep the contribution margins under pressure. The Division will continue to de-bottleneck and expand its manufacturing capacities of epoxy resins and hardeners and has the possibility to substantially increase sales without making huge investments. It will have a larger portfolio of value added products in its total sales. It will endeavour to grow its brand sales which it commenced three years ago and leverage its marketing organisation for introducing new products. The outlook in the foreseeable future is good. Polymers