Atul Ltd 2017-18

Atul Ltd | Annual Report 2017-18 1. Conservation of energy, technology absorption and foreign exchange earnings and outgo 1.1 Conservation of energy 1.1.1 Measures taken: i) Replacement of reciprocating chillers by energy efficient screw chillers ii) Utilisation of excess hydrogen for steam generation iii) Utilisation of steam condensate from process plants in boilers 1.1.2 Additional investments and proposals, if any, being implemented: i) Recovery of heat from cooling operations to heat water ii) Recovery and use of steam condensate from distribution headers iii) Replacement of conventional light fittings by LED light fittings 1.2 Technology absorption 1.2.1 Research and Development i) Specific areas in which Research and Development (R&D) was carried out by the Company: T he Company focused its R&D efforts on process improvement of its existing products, recovery of products from pollutants and process development of new products and formulations. The R&D departments also helped in troubleshooting in manufacturing departments. ii) Benefits derived from R&D: T he Company increased yield of 8 products, decreased consumption of raw materials of 9 products, decreased consumption charge of 3 solvents, recovered 4 products from pollutants and introduced 37 new products and formulations. iii) Future plan: T he Company is investing further in people and equipment so as to strengthen its R&D and thereby enhance its capability. iv) R&D expenditure: ( ` cr) Capital Recurring Total Total R&D expenditure as a percentage of total sales 2.32 20.63 22.95 0.75 1.2.2 Technology absorption, adaptation and innovation i) Efforts in brief, made towards technology absorption, adaptation and innovation: T he Company upgraded many of its processes and operations by imbibing new technology, using more efficient equipment and incorporating automation. ii) Benefits derived as a result of the above efforts, for example, product improvement, cost reduction, product development and import substitution: T he above efforts have resulted in improvement in quality, increase in yields, increase in throughput and decrease in manpower. iii) Technology, if any, imported during the last 3 years reckoned from the beginning of the financial year: The Company did not import any technology. 1.3 Foreign exchange earnings and outgo 1.3.1 Export sales: activities, development initiatives and future plan The Company sold its products in 85 countries, directly and through its subsidiary companies in the USA, the UK, the UAE, China and Brazil. Sales outside India* increased by 11% from ` 1,332 cr to ` 1,478 cr mainly due to higher volumes as compared to the previous year. The Company is taking further steps to strengthen its international marketing network. *Free On Board (FOB) value 1.3.2 Total foreign exchange earnings and outgo ( ` cr) Particulars 2017-18 2016-17 Earnings Exports – FOB value 1,477.69 1,332.49 Dividends, etc 6.25 5.27 Outgo Loan repayment 69.16 218.08 Payment for raw materials, books and periodicals, dividend, etc 602.50 411.07