MIRA
INFORM REPORT
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Report Date : |
25.10.2008 |
IDENTIFICATION DETAILS
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Name : |
ATUL LIMITED |
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Formerly known as: |
ATUL PRODUCTS LIMITED |
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Registered Office : |
Ashoka Chambers, Rasala Marg, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
11.12.1975 |
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Com. Reg. No.: |
002859 |
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CIN No.: [Company
Identification No.] |
L99999GJ1975PLC002859 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AMMA00199D |
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PAN No.: [Permanent
Account No.] |
AABCA2390M |
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Legal Form : |
Public Limited Liability Company.
The company's Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of Dyestuff Chemicals, Drugs and
Pharmaceuticals, Cresol, Sodium Sulphite, Sodium Sulphate, Soda Ash, Gypsum,
Resorcinol, Aslurry, Spent Acid, Dinitro Diphenye, Sulfone, Metanilic Acid,
Heavy Duty Break Fluid, |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 1400000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old established company having satisfactory track. The company is a member of Lalbhai Group, a diversified group. General financial position is satisfactory. Payments are reported as correct and as per commitments.
The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Ashoka Chambers, Rasala Marg, Mithakhali Cross Road, Eills Bridge,
Ahmedabad - 380006, Gujarat, India |
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Tel. No.: |
91-79-26423706/26427520/26449294 |
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Fax No.: |
91-79-26404111 |
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E-Mail : |
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Website : |
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Head Office : |
Colours Division Post Atul, Valsad – 396020, Gujarat, India |
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Tel. No.: |
91-2632-233261/233265 |
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Fax No.: |
91-2632-233619 / 233375 / 233024 / 233619 / 233384 |
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E-Mail : |
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Website: |
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Factory 1 : |
297, GIDC Industrial Estate, Ankleshwar - 393 002, Gujarat, India |
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Factory 2 : |
Atul, District Valsad, Gujarat |
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Factory 3 : |
MIDC, Tarapur, Thane, Maharashtra |
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Divisional Marketing
Departments |
Agrochemicals division
East Site, Atul - 396 020, Gujarat, India E-Mail: wk.ag@atul.co.in Tel. No.:91-2632-233261 Telefax: 91-2632-233024 / 233619
Aromatics division
Atul - 396 020, Gujarat, India Tel. No.:91-2632-233261 Telefax: 91-2632-233633 / 233349 E-Mail: wk.ar@atul.co.in
Bulk chemicals and intermediates
division
East Site , Atul - 396 020, Gujarat, India Tel. No.:91-2632-233261 / 233021 Telefax: 91-2632-233375 / 233619 E-Mail: wk.bl@atul.com.in
International, colours DIVISION:
East Site , Atul - 396 020, Gujarat, India Tel. No.:91-2632-233261 Telefax: 91-2632-233384 / 233619 E-Mail: wk.cl@atul.com.in
National, colours division
West Site , Atul - 396 020, Gujarat, India Tel. No.:91-2632-233291 / 92 / 233617 / 233618 Telefax: 91-2632-233667 / 233122 E-Mail: wk.cl@atul.com.in
Pharmaceuticals and intermediates
division
PP Site, Atul - 396 020, Gujarat, India Tel. No.:91-2632-233621 / 233622 Telefax: 91-2632-233639 E-Mail: wk.pl@atul.co.in
Polymers divisions
PP Site, Atul - 396 020, Gujarat, India Tel. No.:91-2632-233621 / 233622 Telefax: 91-2632-233639 E-Mail: wk.po@atul.co.in |
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Overseas Offices: |
Atul Americas Inc., 11121, Carmel Commons Boulevard, Suit 460, Charlotte, North Carolina - 28226, USA Tel. No.:91-1-704-540 8460 Telefax: 91-704-540 8461 E-Mail: aal@bellsouth.net
Atul Europe Limited 1st Floor, Office Suite B, Summerfields Village Centre, Dean Row Road, Wilmslow SK92TB, UK Tel. No.: 91-44-625-539 209 Telefax: 91-44-1625-529 484 E-Mail: Atul.Europeltd@btinternet.com
Atul China Rm 303A, Building F, Dartguild-hall, No - 20, Guan Gong Dian, Chao Yang District, Beijing 100 020, China Tel. No.: 91-86-10-650 22431 / 650 22213 Telefax: 91-86-10-650 85647 E-Mail: atul@cgw.net.cn |
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Branches: |
310 B, Veer
Savarkar Marg [Cadell Road], Adjacent to Prabhadevi Telephone Exchange,
Opposite India United Mill [Dye works] Prabhadevi, Dadar [West], Mumbai -
400028 Tel No.:
91-22-39876000 Fax No.:
91-22-24376061 / 24386065 Email : mum@atul.co.in Located At :
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DIRECTORS
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Name : |
Mr. Arvind N. Lalbhai |
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Designation : |
Chairman |
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Name : |
Mr. Sunil S. Lalbhai |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. Nusli N. Wadia |
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Designation : |
Director |
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Name : |
Mr. R. A. Shah |
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Designation : |
Director |
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Name : |
Mr. G. S. Patel |
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Designation : |
Director |
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Name : |
Dr. S. S. Baijal |
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Designation : |
Director |
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Name : |
Mr. Manu R. Shroff |
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Designation : |
Director |
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Name : |
Mr. Bansi S. Mehta |
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Designation : |
Director |
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Name : |
Mr. Hasmukh S. Shah |
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Designation : |
Director |
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Name : |
Dr. H. Kaiwar |
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Designation : |
Director |
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Name : |
Mr. J. L. Shah |
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Designation : |
Director |
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Name : |
Mr. S. M. Datta |
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Designation : |
Additional Director |
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Name : |
Mrs. Shalini S. Shah |
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Designation : |
(Nominee of ICICI Bank Limited) |
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Name : |
Mr. Samveg Arvind Lalbhai |
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Designation : |
Managing Director |
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Name : |
Mr. K Aparajithan
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Designation : |
Additional Director
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Name : |
Mr. M. K. Tandon |
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Designation : |
(Nominee of UTI w.e.f. 28/01/2002) |
KEY EXECUTIVES
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Name : |
Mr. T. R. Gopi Kannan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders (As on 31.03.2008) |
No. of Shares |
Percentage of
Holding |
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Promoters Holding |
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Promoters |
11513848 |
38.817 |
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Non-Promoters
Holding |
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Mutual Funds and UTI Administrator of the specifield undertaking of UTI |
1775450 |
5.986 |
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Banks, Financial Institutions, Insurance Companies etc. |
2627961 |
8.860 |
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Foreign Institutional Investors [FIIS] |
963487 |
3.248 |
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Others |
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Private Corporate Bodies |
4265211 |
14.380 |
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NRIs/OCBs |
94147 |
0.317 |
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State Government |
336 |
0.001 |
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Indian Public |
8421293 |
28.391 |
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Total |
29661733 |
100.000% |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Dyestuff Chemicals, Drugs and Pharmaceuticals, Cresol, Sodium Sulphite, Sodium Sulphate, Soda Ash, Gypsum, Resorcinol, Aslurry, Spent Acid, Dinitro Diphenye, Sulfone, Metanilic Acid, Heavy Duty Break Fluid, Para Cand Panisaldehyde. |
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Products : |
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Imports : |
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Countries : |
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Terms : |
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Purchasing : |
L/C, D/A or D/P |
PRODUCTION STATUS (As on
31.03.2008):-
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Cresol |
MT |
7200 |
12000 |
7633 |
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Sodium Sulphite |
MT |
7200 |
12000 |
10910 |
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Gypsum |
MT |
4140 |
4140 |
-- |
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Para Cresidine |
MT |
420 |
420 |
361 |
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Para Anisic Aldehyde |
MT |
3600 |
6000 |
3213 |
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Para Anisic Alcohol |
MT |
300 |
1000 |
951 |
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Manganese Sulphate |
MT |
7200 |
10000 |
8325 |
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Dyestuff (b and d) |
MT |
2750 |
3150 |
9300 |
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Chemicals (other than fertilizers) (b and d) |
MT |
16500 |
16500 |
9682 |
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Sulpha drug intermediate |
MT |
1830 |
625 [c] |
957 |
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2,6 – Dichloraniline |
MT |
20 |
-- |
-- |
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Bulk Drug and Drug intermediate |
MT |
115 |
57 [c] |
14 |
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Pharmaceuticals intermediate (PHIN) |
MT |
320 |
300 |
91 |
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Sulpha methyl phenazole sodium |
MT |
13 |
Nil |
-- |
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Pyrazole base |
MT |
107 |
Nil [e] |
-- |
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UF/MF/Pfdicyandiamide resins |
MT |
3250 |
-- |
-- |
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Epoxy resins |
MT |
1948 |
12250 |
7628 |
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Hardners and auxilliaries |
MT |
1000 |
1215 |
3256 |
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Hardners (inermediates) |
MT |
230 |
485 [c] |
-- |
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Formaldenhyde |
MT |
30000 |
20000 |
16297 |
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Hexamine (tech) |
MT |
1257 |
1800 |
-- |
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Bisphenol – A |
MT |
900 |
1500 |
-- |
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Vinyl ester resins |
MT |
450 |
450 |
-- |
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Polyaminoamide and their intermediates |
MT |
1940 |
1940 |
276 |
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Sulphanilic acid |
MT |
300 |
Nil [f] |
Nil [f] |
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Bisphenol – S and intermediate chemicals |
MT |
200 |
40 |
-- |
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Ketone formaldehyde resins and Sulphomide formaldehyde resins |
MT |
250 |
100 |
-- |
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Bon Acid |
MT |
1200 |
-- |
-- |
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Sulphuric Acid |
MT |
21000 |
59400 |
16466 |
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Oleum 25% |
MT |
7000 |
7000 |
1404 |
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Oleum 65% |
MT |
4050 |
4050 |
8115 |
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Chlorosulfonic Acid |
MT |
4000 |
39600 |
22447 |
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Caustic Soda |
MT |
18900 |
32900 |
18354 |
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Liquid Chlorine |
MT |
12925 |
19915 |
962 |
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Hydrochloric Acid 32% |
MT |
28000 |
46000 |
6048 |
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Beta Naphthol |
MT |
2000 |
-- |
-- |
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Sodium sulphite |
MT |
500 |
-- |
-- |
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Michler's Ketone |
MT |
80 |
-- |
-- |
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Phosphorous Trichloride |
MT |
1000 |
-- |
-- |
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Trichloro Acetic Acid |
MT |
300 |
-- |
-- |
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Chloro Acetic Acid (MCA) |
MT |
750 |
-- |
-- |
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2:4 D Dichloro Phenoxy Derivatives |
MT |
1200 |
9800 |
8900 |
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Phosgene |
MT |
1036 |
1036 |
397 |
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Benzyl chlorofomate |
MT |
-- |
200 |
136 |
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Sulfuryl Chloride |
MT |
100 |
-- |
-- |
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Dichloro Acetic Acid |
MT |
75 |
-- |
-- |
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Dichloro Acetic Acid Methyl Ester (MDA) |
MT |
60 |
-- |
-- |
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Ethyl Carbamate (Urethane) |
MT |
30 |
-- |
-- |
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2.4 D Esters |
MT |
250 |
500 |
-- |
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Lambda cyhalothine |
MT |
-- |
36 |
-- |
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Dicalcium Phosphate |
MT |
4000 |
-- |
-- |
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Indoxacarb Technical |
MT |
-- |
60 |
40 |
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Mono Ethyl Aniline |
MT |
150 |
-- |
-- |
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Carbamite |
MT |
160 |
200 |
-- |
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Ester of Chloro Formic Acid |
MT |
100 |
100 |
-- |
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Diuron Tech |
MT |
100 |
-- |
-- |
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Tetradifon |
MT |
50 |
250 |
-- |
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Isoproturon |
MT |
100 |
-- |
-- |
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Metaxuron |
MT |
100 |
-- |
-- |
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Penta Chloro Phenol |
MT |
200 |
-- |
-- |
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2:4 Diamino Benzophenol |
MT |
20 |
-- |
--- |
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Chloro -Hydroxy-Quinoline |
MT |
-- |
25 |
-- |
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Neonicotinoid (Imidacloprid & Acetamiprid) |
MT |
-- |
20 |
1 |
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Sulfonylurea |
MT |
-- |
50 |
30 |
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Tolyl para Sulfonyl Ethyl Carbamate |
MT |
100 |
-- |
-- |
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Ortho Toluene Sulfonamide |
MT |
100 |
-- |
-- |
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para Toluene Sulfonamide |
MT |
70 |
-- |
-- |
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para Toluene Sulfonyl Chloride |
MT |
88 |
-- |
-- |
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Saccharine U.S.P. |
MT |
50 |
-- |
-- |
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Halazone |
MT |
40 |
-- |
-- |
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Chloramine |
MT |
20 |
-- |
-- |
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Menadine Derivatives |
MT |
3 |
-- |
-- |
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Parachloro Benzene Sulfonamide |
MT |
11 |
-- |
-- |
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Iodochloro Hydroxyquinoline |
MT |
170 |
170 |
-- |
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Nikethamide |
MT |
4.8 |
-- |
-- |
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Tolbutamide |
MT |
25 |
-- |
-- |
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Mebendazole |
MT |
20 |
-- |
-- |
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Chlorzoxazone |
MT |
20 |
-- |
-- |
GENERAL INFORMATION
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No. of Employees : |
2697 |
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Bankers : |
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Facilities : |
(Figures are in Rupees Millions)
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Notes: Notes: 1 Secured by
hypothecation of tangible current assets (other than movable machinery),
namely raw-materials, finished and semifinished goods, inventories and
book-debts of the Company as a whole and also secured by second and
subservient charge on Company's immovable assets to the extent of individual
banks' limit as mentioned in joint consortium documents. 2 Secured by
exclusive charge by way of hypothecation of vehicles purchased thereunder. 3 Secured by
first pari passu charge by way of hypothecation of all the movable fixed
assets and mortgage of the entire immovable properties of the Company,
present and future, excluding specific assets with exclusive charge and second
charge on the entire current assets of the Company, present and future. 4 Secured by
exclusive first charge on : (i) guest house, club house & 27 residential
quarters situated at village Gadkhol, Tal. Ankleshwar, Dist. Bharuch (ii) 15
dwelling units on land situated village Chanvai, Atul, Tal. & Dist.
Valsad and first pari passu charge on balance immovable and movable
properties of the Company, subject to prior exclusive charges in favour of
lenders. 5 Secured by first
pari passu charge by way of mortgage on entire immovable properties and by
hypothecation of entire movable fixed assets of the Company, present and
future, excluding assets with exclusive charge, if any and second pari passu
charge on the entire current assets of the Company. 6 Secured by
first pari passu charge on the fixed assets of the Company as a whole, both
present and future, excluding specific assets with specific charge. 6A To be Secured
by first pari passu charge on the fixed assets of the Company as a whole,
both present and future, excluding specific assets with specific charge. 7 Secured by a
first pari passu charge over the present and future immovable and movable
(save and except current assets and specific charge on specific assets) properties
of the borrower situated at Atul and Ankleshwar. 8 Secured by
exclusive charge on Office Premises (including Land & Building) situated
at Cadastral Survey Nos.1/92 and 3/92 of Mahim Division, Veer Sawarkar Marg,
Prabhadevi, Mumbai, both present & future. 9 Secured by
hypothecation of the standing crop of patchouli in the Co's Farms and also to
be secured by pari passu first charge on the existing and future fixed assets
of the Company, other than exclusively charged assets.
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Dalal and Shah Chartered Accountants
Cost Auditors R. Nanabhoy and Company Chartered Accountants |
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Associates : |
Atul - 396 020, Gujarat Tel. No. 91-2632-233663 / 234330 Telefax : 91-2632-233402 / 233619 E Mail : wh.amal@atul.co.in
Atul - 396 020, Gujarat Tel. No. 91-2632-233261 / 331 Telefax : 91-2632-233024 / 233619
Atul - 396 020, Gujarat Tel. No. 91-2632-233401 / 233654 Telefax : 91-2632-233619 E Mail : w.synthwood@atul.co.in
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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8000000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 800.000 millions |
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80000000 |
Equity Shares |
Rs. 10/- each |
Rs. 800.000 millions |
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Total |
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Rs. 1600.000 millions |
Issued Capital
:
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No. of Shares |
Type |
Value |
Amount |
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29691780 |
Equity Shares of |
Rs. 10/- each |
Rs. 296.918 millions |
Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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29661733 |
Equity Shares of |
Rs. 10/- each |
Rs. 296.617 millions |
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Add: |
Forfeited Shares (amount paid up) |
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Rs. 0.131 million |
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Total |
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Rs. 296.748 millions |
Notes:
- Rs 35.860 millions consisting of 3586000
Equity Shares of Rs 10/- each stands reduced to Rs 3.586 millions,
consisting of 358600 Equity Shares of Rs 107- each, on reduction and
consolidation of said paid up capital as confirmed by the High Court of
Gujarat as per its Order dated 20th August, 1988.
- 7500000 Equity Shares are issued to the
Shareholders of erstwhile The Atul Products Limited, pursuant to
Amalgamation scheme sanctioned by the High Court of Gujarat as per its
order dated 20th August, 1988.
- Of the above Equity Shares, 1964650
Shares are issued as fully paid-up Bonus Shares by way of capitalisation
of Reserves.
- Of the above Equity Shares, 3809310
shares are issued as fully paid-up shares on conversion of 12.5% Fully
Convertible Secured-Debentures of Rs 120/- each.
- Of the above Equity Shares, 11028893
Shares are issued as fully paid-up on conversion of 14% Fully Convertible
Secured Debentures of Rs 180/- each per Debenture.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
296.748 |
296.748 |
296.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4034.523 |
2697.698 |
2433.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4331.271 |
2994.446 |
2730.000 |
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LOAN FUNDS |
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1] Secured Loans |
3679.173 |
3189.273 |
3074.100 |
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2] Unsecured Loans |
604.735 |
490.221 |
414.000 |
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TOTAL BORROWING |
4283.908 |
3679.494 |
3488.100 |
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DEFERRED TAX LIABILITIES |
161.089 |
154.733 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8776.268 |
6828.673 |
6218.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3712.282 |
2394.876 |
2312.400 |
|
|
Capital work-in-progress |
250.864 |
247.213 |
420.700 |
|
|
Advance Against Capital Exp. |
368.071 |
306.548 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
651.291 |
651.291 |
651.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2092.768
|
1723.246
|
2092.800
|
|
|
Sundry Debtors |
2811.107
|
2588.997
|
2223.700
|
|
|
Cash & Bank Balances |
233.544
|
371.332
|
137.900
|
|
|
Other Current Assets |
1.899
|
5.746
|
0.000
|
|
|
Loans & Advances |
1133.970
|
734.282
|
731.100
|
|
Total
Current Assets |
6273.288
|
5423.603
|
5185.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2232.485
|
1951.146
|
2018.500
|
|
|
Provisions |
247.043
|
243.712
|
333.500
|
|
Total
Current Liabilities |
2479.528
|
2194.858
|
2352.000 |
|
|
Net Current Assets |
3793.760
|
3228.745
|
2833.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8776.268 |
6828.673 |
6218.100 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
|
Sales Turnover |
10136.775 |
9108.346 |
10060.100 |
|
|
Other Income |
276.999 |
104.359 |
0.000 |
|
|
Total Income |
10413.774 |
9212.705 |
10060.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
374.596 |
263.710 |
829.400 |
|
|
Provision for Taxation |
26.726 |
7.170 |
(13.500) |
|
|
Profit/(Loss) After Tax |
347.870 |
256.540 |
842.900 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
4857.360 |
4638.852 |
4145.403 |
|
Total Earnings |
4857.360 |
4638.852 |
4145.403 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
1688.250 |
1053.904 |
1331.924 |
|
|
Stores & Spares |
0.000 |
0.013 |
5.497 |
|
|
Capital Goods |
17.760 |
16.741 |
13.268 |
|
Total Imports |
1706.010 |
1070.658 |
1350.689 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
5815.190 |
5122.195 |
0.000 |
|
|
Manufacturing Expenses |
1900.114 |
1736.966 |
0.000 |
|
|
Employees Emoluments |
757.361 |
670.738 |
0.000 |
|
|
Interest |
307.886 |
282.156 |
0.000 |
|
|
Depreciation & Amortization |
295.475 |
305.867 |
0.000 |
|
|
Other Expenditure |
948.479 |
822.380 |
10054.200 |
|
Total Expenditure |
10024.505 |
8940.302 |
10054.200 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 1st
Quarter |
30.09.2008 2nd
Quarter |
|
|
|
|
|
|
Sales Turnover |
|
2992.100 |
3510.900 |
|
Other Income |
|
5.500 |
63.600 |
|
Total Income |
|
2997.600 |
3574.500 |
|
Total Expenditure |
|
2830.200 |
3187.500 |
|
Operating Profit |
|
167.400 |
387.000 |
|
Interest |
|
92.900 |
99.400 |
|
Gross Profit |
|
74.500 |
287.600 |
|
Depreciation |
|
74.200 |
72.400 |
|
Tax |
|
1.700 |
36.900 |
|
Reported PAT |
|
2.400 |
178.300 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
1.31 |
1.28 |
1.55 |
|
Long Term Debt
Equity Ratio |
0.81 |
0.82 |
1.04 |
|
Current Ratio |
1.44 |
1.45 |
1.44 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.47 |
1.39 |
1.31 |
|
Inventory |
5.64 |
5.06 |
4.62 |
|
Debtors |
3.99 |
4.01 |
4.08 |
|
Interest Cover
Ratio |
2.16 |
2.03 |
2.40 |
|
Operating Profit
Margin (%) |
9.32 |
9.30 |
11.53 |
|
Profit Before
Interest and Tax Margin (%) |
6.57 |
6.13 |
8.26 |
|
Cash Profit
Margin (%) |
6.14 |
6.18 |
8.51 |
|
Adjusted Net
Profit Margin (%) |
3.40 |
3.01 |
5.24 |
|
Return on Capital
Employed (%) |
10.06 |
9.29 |
12.42 |
|
Return on Net
Worth (%) |
12.00 |
10.43 |
20.07 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
The company was incorporated on 5th September 1947 at Ahmedabad in Gujarat under the name and style of Atul Products Limited having company Registration Number 2859 and subsequently the name of the company was changed to the present.
Subject was set up by Mr. Kasturbhai Lalbhai as a related diversification and commenced the manufacture of dyes and dye intermediates, agro-chemicals, aromatics like para-anisaldehyde, epoxy resins and pharma intermediates in 1947 at Valsad
In 1988-89 Gujarat Aromatics was merged with the company. Subject has promoted two manufacturing companies, namely Atic Industries in 1956 and Cibatul in 1960. An atic industry which was promoted in collaboration with ICI, UK manufactures Vat and other dyes and sulphuric acid. While the Cibatul which was promoted in collaboration with Ciba-Geigy, manufactures sulphur drug intermediates, resins and auxiliaries. In 1985, the company transferred its investments in Atic and Cibatul to a wholly owned subsidiary, Ameer Trading Corporation and later in 1995-96 this Atic Industries was integrated with the company.
In 1986, the company took over the management of Piramal Rasayan through its 100% subsidiary and subsequently changed the name of the company to Amal Rasayan.
Subject has also promoted Gujarat Synthwood to manufacture PVC Foam sheets. In 1995, the company commissioned para-cresidine and para anisicaldehde manufacturing plants.
In 1995-96, the company was implementing a project to manufacture non-benzidine dyestuffs with a capacity of 1700 tpa and the company has commissioned the project for manufacture of para cresol in 1997-98.
In 1996-97, the company issued 50,000 14% cumulative redeemable preference shares of Rs.100/- each amounting to Rs.5 millions.
Subject has been accredited with ISO 9002 certification for agro chemicals and pharmaceuticals division from TUV Bayern, Germany in 1996-97.
In 2000-01, the company has initiated the plan of installation of third fluidised boiler in order to become self reliant in captive power generation.
Subject is a part of Lalbhai Group manufacturing a wide range of chemicals, dyes, dye intermediates and pigments alongwith agrochemical, and pharmaceuticals. The group has grown from one textile mill in 1908 to become an international business conglomerate today. Currently, the group has strong presence in textiles, chemicals, engineering, finance, white goods and real estate.
1947 The Atul Products Limited incorporated.
Lederle
Laboratories (India) Limited incorporated
1952 Sulphur
Black and acid / direct dyes plants inaugurated by Jawaharlal Nehru, the then
Prime Minister of India.
Two 11
t/h Coal Fired Steam Generating System commissioned (replaced by high pressure
Steam Generating System in 1990).
1 MW
Steam Turbine Set commissioned (replaced by 2.5 MW Back Pressure Steam Turbine
for co-generation in 1977).
477000 m3
Weir No. 1 near Atul in River Par commissioned.
1955 Atic Industries Limited incorporated
1956 Vat dyes plant commissioned.
11 t/h Coal
Fired Steam Generating System commissioned (replaced by High Pressure Steam
Generating System in 1990).
4 MW
Steam Turbine commissioned
1959 Vat dyes plant expanded.
1960 Sulphuric acid and oleum plant commissioned.
Cibatul
Limited incorporated.
1961 1364000 m3 Weir No. 2 near Panchalai, in River
Par commissioned.
1962 Lederle Laboratories (India) Limited renamed Cyanamid India
Limited
1963 BON acid plant commissioned.
1964 Chlor-alkali (mercury cell) plant commissioned.
1965 Chlorosulphonic acid plant commissioned.
Dicalcium phosphate plant commissioned.
Naphthalene intermediates plant commissioned.
Vat dye intermediates plant commissioned.
1966 Urea formaldehyde plant commissioned.
Sulpha drug intermediates plant commissioned.
Two 34 t/h Oil Fired Steam Generating System commissioned.
1968 Fast colour bases plant commissioned.
Epoxy resin plant commissioned.
Two 10 t/h Oil Fired Steam Generating System commissioned.
1969 Reactive dyes plant commissioned.
1970 Anthraquinone plant commissioned.
Vat dyes plant expanded.
Phosgene plant commissioned.
1972 Formaldehyde plant commissioned.
1974 Aluminium chloride plant commissioned.
Anthraquinone disperse dyes plant commissioned.
Azo disperse dyes plant commissioned
1976 Beta naphthol plant commissioned
1978 Vat dyes plant expanded.
Two 18 t/h Coal Fired Steam Generating System with 2 MW Back Pressure Turbine set for co-generation commissioned.
1980 Reactive dyes plant expanded.
Reactive dye intermediates plant commissioned.
Sulphuric acid and oleum plant commissioned.
1982 Central effluent treatment plant for Atul complex commissioned.
1985 Monochlorobenzene plant commissioned.
The Atul Products Limited and Gujarat Aromatics Limited (Cresols) merged.
The Atul Products Limited gained management control of Amal Rasayan Limited
1200 kVA D G Set commissioned.
1986 8 t/h Coal Fired Steam Generating System commissioned
1987 Diuron plant commissioned.
1988 Disperse dye-intermediates plant commissioned.
Sulphur dyes plant commissioned.
The Atul Products Limited renamed Atul Products Limited
2500 m3/d Effluent Treatment Plant commissioned.
1989 Multi-purpose pilot plant commissioned.
1990 Beta naphthol plant capacity enhanced.
Sulphuric acid plant capacity enhanced.
Two 34 t/h Coal Fired High Pressure Steam Generating System commissioned.
5 MW Extraction cum Back Pressure Steam Turbine set for co-generation commissioned.
1991 Dicalcium phosphate plant capacity enhanced.
Hazardous Waste Incinerator for solid/liquid Phase-I commissioned.
1992 Upgraded effluent treatment facilities commissioned.
9600 m3/d
Effluent Treatment plant commissioned.
1993 Chlor-alkali (membrane cell) plant commissioned.
New
acid/direct dyes plant (phase 1) commissioned.
Sulphur
Black plant capacity enhanced.
1994 BON acid plant capacity enhanced
Dinitrochlorobenzene
plant capacity enhanced
Diuron
plant upgraded
Vat dyes
capacity enhanced
1995 Chlorosulphonic acid plant capacity enhanced.
New
acid/direct dyes plant (phase 2) commissioned.
Atul
Products Limited restructured into business units.
Atic
Industries Limited merged into Atul Products Limited
Para
anisic aldehyde plant commissioned.
45 t/h
Coal Fired Steam Generating System with 5.6 MW Back Pressure Steam Turbine Set
for co-generation commissioned.
1996 Amal Rasayan Limited renamed Amal Products Limited
Atul
Products Limited renamed Atul Limited
Herbicides
capacity enhanced.
Hazardous
Waste Incinerator for liquid Phase-II commissioned.
1997 H-acid plant of Amal Products Limited commissioned.
Agrochemicals
business of Cyanamid India Limited spun off to form Cyanamid Agro Limited
Cyanamid
India renamed Wyeth Lederle Laboratories Limited
4
kilometre pipeline laid for discharge of treated effluent.
1998 Para cresol capacity enhanced.
18 MW
Steam Turbine set commissioned.
1999 Herbicides capacity enhanced.
AtRo
Limited incorporated.
Cibatul
Limited merged into Atul Limited
The company has joint
ventures with the following :
Agrimore Limited
Atul - 396 020, Gujarat
Tel. No.: 91-2632-233713 / 484 / 575
Cynamid Agro Limited
Nyloc House, 254 / D-2, Dr. Annie Besant Road, Mumbai, Maharashtra
Tel. No.: 91-22-2493 5211
Telefax: 91-22-2495 0237
Wyeth Lederle Limited
Nyloc House, 254 / D-2, Dr. Annie Besant Road, Mumbai, Maharashtra
Tel. No.: 91-22-2493 5211
Telefax: 91-22-2495 0237
The company operates through six business divisions at its Atul and Ankleshwar sites and a global network of associates and subsidiaries.
Profitability:
The sales and operating income at Rs 10140 Millions recorded a growth of over
11% and crossed the milestone of Rs 10000 Millions. All businesses showed a
positive growth despite high export content and the consequent lower export
realisation due to a weak US dollar. The Company consolidated its position as a
leader in several niche products. Profitability from operations was affected
mainly on account of two adverse developments, namely, lower export realisation
arising from the strengthening of the rupee against the US dollar by around 12%
during the year and an unprecedented rise in prices of several key raw
materials.
Finance:
In the current year, the benchmark interest rates continued to rise - PLRs of
some banks showed an upward bias. Libor rates were however lower at the end of
the year. Efforts are on to shrink the interest cost through tighter working
capital norms and higher cash generation from operations.
Loans taken have been used for the purpose for which they have been sanctioned
by the respective banks or financial institutions.
Insurance:
The Company has taken adequate insurance to cover the risks to its assets,
profits, employees and third parties.
Industry
overview:
* The Agrochemical Industry in 2007 grew by 8.4% over 2006 globally and by 9.4%
in India.
* In Latin America, the agrochemicals market grew by 18.6% due to the increased
acreage of maize and sugarcane for higher ethanol.
* 2007 was characterised by US dollar depreciation, enhanced raw material cost,
stricter enforcement of pollution laws and reduction of export benefits in
China.
2,4-D:
The global 2,4-D market is about 75000 MT (US$ 250 million) at the distributors
level. It is among the oldest, most widely used, versatile herbicide after
Glyphosate and treats more than 260 million acres annually. The domestic 2,4-D
market has the following features:
* The current market potential for 2,4-D and its derivatives is 3450 MT.
* The product is present across Assam, Gujarat, Maharashtra, Tamil Nadu, Uttar
Pradesh and West Bengal etc.
* It finds application in major crop segments like rice, sugarcane, tea, wheat,
etc.
* It is leader in the domestic market.
Opportunities and threats:
Opportunities:
* In the domestic business, brand sales is expected to grow in the recently
established markets of Andhra Pradesh, Assam, Bihar, Karnataka, Maharashtra,
Tamil Nadu and West Bengal.
* Expected registrations from June 2008 in South America will generate an
additional demand for 2,4-D.
* Combination is expected to create an additional demand of 2,4-D in selected
segments.
Divisional
overview:
* The division manufactures herbicides, insecticides, fungicides and other
intermediates.
* It is one of the only three Indian companies licensed to manufacture
Phosgene-based products.
* It is a major producer of selected herbicides in India.
* Exports comprise 50% of the revenue pie and the products are accepted across
35 countries.
* The business is endorsed by ISO 9001:2000 and ISO 14001 certifications.
Legacy:
* Manufacture of 2,4-D, a popular herbicide, was started towards the end of
1960s.
* 2,4-D gradually emerged as an important business driver.
* It established a strong foothold in 2.4-D export market.
* It entered branded sales in 2004-05 and also commenced the manufacture of
fungicides in the same year.
* It launched 23 products between 2004 and 2006.
* It leveraged knowledge and infrastructure for toll manufacturing for
international clients.
Products:
* Herbicides* Fungicide* Insecticide* Intermediates
Branding - growing corporate visibility:
* In 2002, the division commenced product branding in India.
* Started with a modest business of Rs 30 Millions in 2004-05 now touching Rs
450 Millions in 2007-08.
* Initiated branded sales in north India in 2004 with Sulfonylurea herbicides
and Phosgene-based products.
* Branded business constitutes about 24% of the revenue (2007-08), while the
domestic brand business moved from Rs 220 Millions (2006-07) to Rs 450 Millions
(2007-08).
Position:
* Fourth largest manufacturer of 2,4-D in the world.
Highlights, 2007-08:
* Overall, domestic sales grew by 41% over the previous year.
* Domestic branded sales grew by 100% and domestic bulk by 18%.
* In export business, the demand for 2,4-D increased during the second half of
the financial year in 2007.
* Branded business extended to cereal herbicides.
* The division initiated trading in agrochemicals under its own brands,
expanding product offerings to the dealer/end-user. About 30% of the business
was derived from trading activities in 2007-08.
* The product range expanded to cover fruits and vegetables.
* The division expects to receive registration for its key product, 2,4-D in
Brazil in July 2008. The present market size is estimated at 10,000 tpa.
* It improved manufacturing efficiencies for its key products.
* It de-bottlenecked the 2,4-D plant and reduced the batch cycle time by around
10%.
* It entered into an international toll manufacturing agreement for a
Sulfonylurea herbicide.
Outlook:
In 2008, the brand business is expected to grow substantially after
strengthening the network in south, east and west India. The growth in export
business is expected to be moderate.
Business division:
Aromatics:
Industry overview:
The Aromatics Division operates in the fine chemical sector of the Chemical
Industry and markets its products to four key customer segments:
* Antioxidants
* Sunscreen actives
* Active pharmaceutical intermediates
* Flavours and Fragrances
Antioxidants:
The overall size of the global antioxidant business is around 645,000 MT with a
total value of US$ 3400 million and an annual growth rate around 3%.
The Phenolic antioxidant segment, wherein para Cresol is used as the raw
material is about 76,000 MT, with a total value of US$ 310 million and with an
annual growth rate of over 2%.
Sunscreen actives:
Sunscreen actives have been the fastest growing segment among all personal care
ingredients over the last five years, with an annual growth rate of over 12% in
the Asia-Pacific and Latin American regions. Of the two major categories of
sunscreen actives, based on their UV blocker profile, OMC (Octyl methoxy
cinnamate) is a major UV-B sunscreen blocker made from para Anisic aldehyde.
The global OMC market is around 7000 MT with a total value of US$ 75 million.
OMC continues to be one of the widely used sunscreen agents with an annual
growth rate over 4%.
Active pharmaceutical intermediates:
This segment witnessed the fastest growth in the division with a major part of
the growth attributed to Indian and Chinese API customers. The drug
intermediate GCLE used in the synthesis of fourth-generation Cephalosporin
antibiotics has witnessed the most rapid growth over the past two years. GCLE
uses para Anisyl alcohol as a key starting material.
Flavours and Fragrances:
The ovorail size of global Flavours and Fragrances (F&F) Industry is around
US$ 19 billion and is growing over 4% annually. The division supplies para
Anisic aldehyde and its derivatives to all major global F&F customers, with
a significant presence as the core listed vendor for para Anisic aldehyde to
top five global F&F companies. Following the ongoing consolidation in the
F&F Industry, there has been an increased shift of aroma chemical
manufacturing out of Europe to the cost competitive geographies of Asia. The
division is competitively positioned to take advantage growth in this
area.
Volume and growth:
The division enjoys core listing as a key vendor for all of its major products
and with all of its major products and with all its global customers, who
constitute the market leaders in their industries. Customers include many
leading multinational companies. The table below lists the growth data of its
products for various applications.
Growth regions:
Europe continues to be the map region accounting for 76% of exports followed by
Asia Pacific at 14%. USA at 7% and Latin America at 3%.
Opportunities and threats:
Opportunities:
* The demand for para Cresol and para Anisyl alcohol continues to grow, driven by
rapid growth in all user segments and specifically in anti-oxidants and bulk
drug industries. Product 2006-07 2007-08
Para Cresol for antioxidancts 3357 MT 3884 MTPara Anisic aldehyde for flavours
and fragrances 504 MT 534 MTPara Anusyl alcohol for pharmaceutical activities
483 MR 734 MT
* Capacity expansion in para Anisyl alcohol completed during the year helped
meet the growing demand successfully.
* The preferred supplier status with leading sunscreen, antioxidant and F&F
companies provides further volume growth potential for the existing product
line as well as opportunities to introduce new speciality chemicals and
ingredients.
Threats:
* Prices of all raw materials, such as Sulphuric acid, Manganese dioxide and
Toluene continue to remain unstable, marked by unprecedented price escalations
across the globe, This, combined with a growing recession, :orm business risk.
* Pricing for most key customers in the lomestic and export market is being
done on a quarterly basis, making it difficult to immediately factor in the
behaviour of raw material prices and currency exchange rates.
Divisional overview:
* The business caters primarily to the Flavours and Fragrances Industry
* Para Cresol is a key product contributing 35% to revenues and remains the key
building block for all downstream products
* The manufacturing facility is located in Ankleshwar, Gujarat.
* The portfolio comprises 14 products; exports comprise about 63% of the
revenue basket.
Products:
* Para Cresol* Para Anisic aldehyde* Para Anisyl alcohol
The other downstream derivatives comprise the following:
* Para Cresidine from para Cresol, which is used in the Dyestuff Industry
* Para Cresyl methyl ether, a derivate generated during the manufacture of para
Anisic aldehyde, finds application in the Fragrance Industry.
* Para Methoxy benzyl cyanide (a para Anisyl alcohol value-addition), is the
building block for CNS therapeutic product Venlafaxine, which is going
off-patent by the end of December 2008.
Position:
* Atul is among the three leading global manufacturers of para Cresol and the
largest in India. After the commissioning of the expanded capacity already
under implementation, it will emerge as the largest single-location
manufacturer of para Cresol in the world.
* It is the largest manufacturer of para Anisic aldehyde in the world.
* It is the largest manufacturer of para Anisyl alcohol in the world.
* It has its major customers figuring among the top three in the world in their
respective business segments with the Company as their core listed
vendor.
Highlights, 2007-08:
Input costs:
Key inputs turned inflationary. Price of Sulphuric acid, Sulphur dioxide and Sulphur
trioxide, the raw materials used in sulfonation, rose considerably during the
year due to seven-fold increase in the price of Sulphur following supply
disruptions from Canada owing to snow storms. This factor and the increased
demand from Indian and Chinese fertiliser companies and a demand upturn from
the Chinese road and infrastructure sector led to the Sulphur price spiral. As
a result, Sulphuric acid which is used as a solvent to make para Anisic
aldehyde from para Cresol too increased from Rs 1.50 kg to Rs 8-9 per kg.
Price of Manganese dioxide increased from Rs 16 to Rs 42 per kg due to demand
growth from the Indian and Chinese Steel Industry and a slowdown in
Ferro-manganese production in China due to tighter pollution control norms.it
expanded its para Cresol capacity in 2007-08, implemented process improvements
that reduced impurity levels and strengthened the yield ratio at par with
global standards. Net sales of the division grew by 8% during the year.
Business growth came from increase in para Cresol volumes to the Phenolic
Antioxidants Industry as well as significant gains in the sales to bulk Drug
Industry, which saw increased sales of para Anisic aldehyde and para Anisyl
alcohol. Sales growth of perfumery grade products improved over the previous
year with increased sales to all major global F&F customers. However, the
biggest volume growth was gained in para Cresol, driven by significant volume
growth in Europe and other geographies, aided by the changing global
availability and supply scenario in para Cresol.
Outlook:
The division, having gained a global market leadership in para Cresol, para
Anisic aldehyde and para Anisyl alcohol, is now poised to grow its position
through capacity expansion and related diversification.
Para Cresol manufactured by Atul is considered among the best in the world in
terms of its quality.
Business division:
Bulk Chemicals and Intermediates:
Industry overview:
Bulk chemicals are used by ail branches of the Chemical Industry and by many
other industries such as paper, textile, etc. Chemicals such as Resorcinol are
used by industries such as rubber, tyros etc.
Industry structure and
developments:
* The western Indian market, targeted by the Bulk Chemicals and intermediates
Division, could somehow manage to maintain the price trend of the previous two
years.
* Caustic rates declined marginally. The sales volume of Sulphuric acid
products went up in 2007-08 compared with 2006-07.
* The demand for Chloro sulphonic acid was comparatively high; despite the
unprecedented increase in Sulphur price, the sales volume remained higher
Sulphur price escalation was negated by a proportional rise in the Chloro
sulphonic acid price.
* Compared with 2006-07, higher Sulphur trioxide derivatives were manufactured
to meet both captive and external demand.
* The volume of Resorcinol grew in 2007-08.
* The product witnessed severe competition in the international markets.
* The contribution margin of Resorcinol came under severe pressure owing to
falling prices in the international market, battered by severe competition on
the one hand and a substantial price increase in Sulphur-related products and
furnace oil, affecting the variable conversion cost, on the other hand.
* Vinyl sulfones of Dyestuffs Industry grew at more than 15%. The Vinyl sulfone
market was estimated at Rs 10000 Millions per annum in the Gujarat belt.
* The division focused on the Tyre Industry, worth US$ 5 billion in India and
US$ 75 billion globally, growing at 15% and 6%, respectively.
* Other applications like UV stabilisers, flame retardants and resins for wood
applications are growing globally at 7%, 8% and 5%, respectively.
Growth regions:
Baltic states, Latin America, and northeast Asia are potential growth regions
for their chosen products besides Europe, India and USA.
Opportunities and threats:
Opportunities:
* The liquid chemical business segment in 2008-09 is expected to perform
similarly in 2007-08, but with better sales realisation.
* The Sulphur cost is expected to continue to remain on the higher side;
value-added products will be the area of emphasis.
* Hydrogen bottling plant will add to contributions.
The division looks forward to...:
* A new technology for Resorcinol implemented for the first time.
* Benefits from the Hydrogen bottling plant, which commenced production.
* Another eiectrolyser to marginally increase the Caustic soda capacity.
* Innovative Sulphur recovery from sludge to. enhance reusability.
* Resorcinol expansion with new technology is expected to provide better yield
and cost-competitiveness.
Divisional
overview:
* The division manufactures a variety of bulk chemicals and semi-speciality
intermediates for use in other business divisions.
* Key products comprise Caustic lye and acids; 36% of the total production is
consumed in-house.
* It reported the highest intra-Company growth across divisions in three
years.
* It started with sales revenue of Rs 260 Millions in 2004-05, touching Rs 710
Millions in 2007-08.
Products:
Bulk chemicals:
* Caustic lye and Chlorine* Sulphuric acid and Oleum 65* Sulphur trioxide*
Chlorosulfonic acid
Intermediates:
* Resorcinol
Position:
* Atul is a leading supplier of Chloro sulphonic acid and Resorcinol in
India.
Highlights, 2007-08:
* The division commenced the Hydrogen bottling project from April 2008.
* It reported record capacity utilisation in excess of 90% in bulk
chemicals.
* It commercialised the manufacture of Resorcinol formaldehyde resins.
* Resorcinol capacity expansion, under execution, is expected to be complete by
the end of the second quarter, 2008-09.
Outlook:
The division expects the new Hydrogen bottling plant and Resorcinol project to
enhance sales and profit.
Business
division:
Colors:
Industry overview:
The Colors business can be viewed as a part of Dyestuff Industry serving the
Textile, Paper, Leather and Food industries. Dyestuffs are also used in
electronics and medical applications. Currently the Industry output is worth
US$ 10 billion or about 1.2 million MT per year, growing at the rate of 3% to
4%. The Companies belonging to the Industry have not been doing well because of
unfair global and local competition.
Industry structure and
developments:
* Post WTO quota regime, several large textile mills made huge investments, in
anticipating increased overseas demand. Unfortunately, the depreciation of US dollar
weakened the competitive position.
* Simultaneously, the stricter environmental enforcement and a sharp reduction
in exports rebate put a severe pressure on some Asian competitors, which opened
up opportunities for the Indian Dyestuff Industry.
* All major dyestuffs manufacturers from Europe shifted to Asia.
Divisional
overview:
* The division manufactured a broad range of dyestuffs used in by textile,
paper and food industries.
* It exported nearly 55% of its production to about 40 countries
worldwide.
* It did not do well during the last five years, but is expected to improve its
performance.
Pharmaceuticals
arid Intermediates:
Industry
overview:
The Pharmaceuticals and Intermediates Division operates in three business areas
- Sulfones, APIs and Phosgene-based intermediates and chemicals.
Industry structure and developments:
* Sulfones are used in Aerospace and Paper Industries, Copper-clad laminates,
Powder coating and applications.
* The Aerospace Industry grew last year marked by a boom in the Asia Pacific
region.
* Aircraft manufacturers announced new generation of aircrafts using carbon
fibres, providing better fuel efficiency.
* Sulfones are used as curing agents in carbon fibre-based composites /
prepregs, being used in new generation aircrafts.
* As the new-generation aircrafts use higher quantity of carbon-fibre
composites, the demand for Sulfones in this Industry is expected to grow
rapidly at around 10-12% annually. Usage in other industries is also growing
steadily at 3-4% annually.
* The Pharmaceuticals Industry has a good potential for future growth.
* In generic APIs, growth in India is faster as many Indian companies produce
APIs and formulations for exports including regulated markets.
* Many pharma MNCs from Europe, USA and Japan shifted some of their operations
to Asia or increased sourcing of intermediates and APIs from India or
China.
* Many MNC's have now started sourcing Phosgene-based intermediates and API's
from China and India.
Polymers:
Industry
overview:
Epoxy resins and systems offer bonding and coating solutions for various
applications including aircrafts manufacture to paints and windmills to
handicraft. The products also cater to basic building blocks of infrastructure.
In a growing economy like India, the demand potential is expected to increase
substantially.
Industry structure and
developments:
* For the major part of the year, prices of key raw materials remained stable
or lower compared to 2006-07. This lowered selling prices of some products,
especially commodities by competitors. The division too responded with price
reductions.
* The epoxy business remained highly competitive. With large capacity creations
globally, competition was significantly intense for most part of the year,
which resulted in a pressure on margins.
* 2007-08 witnessed a higher degree of competition through imports. As
import duty on epoxies in the Union Budget, 2007 reduced from 12.5% to 7.5%,
local manufacturers were compelled to lower their prices to compete with
imports. To a large extent, the division successfully protected its margins by
developing a favourable product and client mix.
While USA and Europe are estimated to be growing at an average of 3%, Asia,
relatively is growing faster at estimated 5%. Key growth drivers in Asia are
China and India which are expected to sustain rapid growth rates in short to
mid term. Single largest market in the world continues to be USA but China is
catching up fast.
Opportunities and threats:
Opportunities:
* India continued with major growth in civil and infrastructure sectors. The
Indian epoxy market grew rapidly as well, registering a double-digit
growth.
* The Company consolidated its position with some key consumers in the Indian
market, and also obtained approvals for some of the newer products, which are
expected to be introduced in 2008-09. The Company improved its sales network in
Europe and the Middle East.
Fixed Assets:
- Land – Freehold (a)
- Land – Leasehold
- Buildings
- Roads
- Tubewells and Pump House
- Plant and Machinery
- Railway Sidings
- Laboratory Equipments
- Equipment Furniture and Deed Stock
- Office Equipment
- Vehicles
- Capital Spares
- Research and Development
- Building
- Machinery
- Computer Software
Contingent Liabilities :(31.03.2008- Rs. in Millions)
|
Disputed excise demands – matter under
appeal |
136.776 |
|
Disputed customs demands – matter under
appeal |
27.531 |
|
Disputed watercharges – matter under appeal |
560.772 |
|
Claims against the company not acknowledged
as debts |
24.286 |
|
Income-tax demands including –matter under
appeal |
112.372 |
|
Sales tax matter under appeal |
5.586 |
|
Guarantees given by the company to bank and
financial institute on behalf of the third parties. |
-- |
Charge by way of
hypothecation of tangible current assets (other than Movable Machinery), namely
raw materials, finished & semi-finished goods, inventories and book debts
of the Company as a whole and also charge by second and subservient charge on
comapany's immovable assets to the extent of individuals banks limits as
mentioned in joint consortium documents and also extends to guarantee given by
the bankers.
WEBSITE DETAILS:
Infrastructure At Atul
Subject has made significant contributions to the
development of infrastructure in Atul and nearby villages. The company has
already built over 1000 houses, 2 schools, a medical centre, a sports complex,
an open air theatre and a community centre.
Subject is self-sufficient in its requirement of electricity
achieved through three state-of-the-art captive power plants. The company is
also in the process of renewing its fifty year water agreement with the
government of Gujarat.
Captive
Power Generation
Atul Complex is self sufficient in meeting continuous and
uninterrupted steam demand for all its chemical manufacturing processes and it
also meets more than 95% of electricity demand for its housing colonies.
At Atul Complex, there are three captive power plants
consisting of coal/oil fired boilers and turbo generator sets having capacity
ranging from 2 MW to 18 MW. Over and above this, diesel generator sets have
been installed so as to facilitate the start up from total black out
All boilers and power generation sets have been designed to
meet the stringent pollution norms as fixed by Gujarat Pollution Control Board.
Treatment
Storage Disposal Facility (TSDF)
Subject has developed a site for disposal of solid wastes by
land filling. The site was selected on the basis of a technical Environment
Impact Assessment (EIA) study done by National Productivity Council (NPC). NPC
also has given the detailed design of the site. On the basis of this technical
EIA and the design, site for TSDF was approved by the state level committee and
Gujarat Pollution Control Board.
Snapshot
of Facilities
The dimensions of the infrastructure facilities at Subject
manufacturing sites at Atul and Ankleshwar are given below.
|
Description |
Units
of Measurement |
Atul
Site |
Ankleshwar
Site |
|
|
|
|
|
|
Land Area |
Acres |
1250 |
33 |
|
Effluent Drainage System |
Kilometres |
65 |
GIDC drainage system |
|
Effluent Treatment Plants |
Cubic Metres/Day |
30000 |
2500 |
|
Incinerators |
Numbers |
4 |
NIL |
|
Captive Power Plant (installed capacity) |
Megawatts |
29 |
2.4 |
|
Electricity Consumption |
Million Units/Month |
13 |
1 |
|
Steam Generation (installed capacity) |
Metric Ton/hour |
217 |
32 |
|
Water Storage |
Cubic Metres |
2 million |
1450 |
Subject is a member of Lalbhai Group, one of the oldest business
houses of India, with interests mainly in textiles and chemicals. The Group is
strongly committed to serve the society in the fields of education, health as
well as culture.
Incorporated in 1947, subject (formerly Atul Products
Limited) was founded by Kasturbhai Lalbhai with a dream to make India self
reliant in chemicals, generate employment on a large-scale and create wealth
for the society. For translating his dream into reality, Kasturbhai Lalbhai
brought his confidant, Ballubhai Muzumdar, an economist- and his son, Siddharth
Kasturbhai Lalbhai, a chemical engineer, to lead subject and establish a large
chemical conglomerate.
Subject became the first private sector company of India to
be inaugurated by Jawaharlal Nehru, the first Prime Minister of the country.
The company thus commenced its business with just a few dyestuffs, the know-how
of which was brought from foreign companies.
Over the years, subject joined hands with American Cyanamid
Corp (1952), Imperial Chemical Industries plc (1955) and Ciba-Geigy Limited
(1960) to form respectively 3 joint venture companies, namely, Cyanamid India
Limited Atic Industries Limited and Cibatul Limited respectively.
Consequent to worldwide divestment of dyes and polymers
business by ZENECA plc (formerly a part of ICI plc) and Ciba Limited
respectively, Atic Industries Limited and Cibatul Limited were merged into Atul
Limited in 1995 and 1998 respectively.
Subject operates through six business divisions, namely,
Agrochemicals, Aromatics, Bulk Chemicals and Intermediates, Colors,
Pharmaceuticals and Intermediates and Polymers. Each business, in step with the
company vision, develops and implements its growth plans.
Subject registered office is in Ahmedabad whereas its
corporate headquarters are located in the company, Gujarat. The Company is
listed on the NSE in India and has over 35,000 shareholders. Subject also has
offices in the USA, the UK, Germany, China and Vietnam that service its
international customers.
News & Updates
'Atul
felicitates Quiz winners'.
August 18, 2008, Atul:
Atul Limited honored winners of the Quiz organized by Dhvani – The House
Journal of Atul Limited – Specialty Chemical Company. Attractive prizes and
Certificates were awarded recently at the hands of Mr. S M Pandya, GM,
Technology Unit, Atul Limited Ms. Abha G Dave, Ms. Anjana Padalia, Ms. Hemal
Parekh, Mr. HG Shukla, Mr. Naresh D Prajapati, Mr. Prathik Shah, Ms. Ruchi
Patel, Mr. Sanjay M Vashi, Dr. Vandana Upadhyaya & Mr. Vrajesh Parikh were
prestigious winners of ‘Know Your Atul’ Quiz organized by Atul Dhvani Issue #1.
This interesting Quiz – ‘Know Your Atul’ was created by Mr. Ritesh Gulabani.
Incorporated in 1947, Atul became the first private company to be inaugurated
by Pt. Jawaharlal Nehru – India’s first Prime Minister. ‘Know your Atul Quiz’
was organized to enhance awareness about the history of Atul, which is
synonymous to the industrial development of free India. Atul was established
with a dream to make India self reliant in chemicals, generate employment on a
large-scale and create wealth for the society in the post-independence era. The
quiz had several interesting questions about the history of Atul. There was an
overwhelming response to the Quiz.
Atul has recently rejuvenated its quarterly house journal – ‘Dhvani’. Dhvani
has a mission to express the inner voice of all employees of Atul. The
quarterly magazine tries to encompass different facets of achievements and
developments at Atul and is published in print and e-media. Recent issue of
Dhvani had a cover story on Atul achieving annual income of Rs. 10000 Millions
in 2007-08. Mr. Sunil S Lalbhai in his message has appealed to all Atulites to
actively participate and support to achieve common goals of the company. He has
further expressed confidence that Atul will enhance its speed of growth and
live up to Atul’s immense potential. Dhvani has lot more to cover beyond
business. It highlights achievements of Atul Vidyalaya and Kalyani schools
located on the campus of Atul, Health Tips, Corporate Social Responsibility,
Articles, Poems and Short Stories and so on…
About Atul Limited :
Atul Limited - a member of Lalbhai Group is one of the oldest business houses
of India. Atul Limited provides innovative chemistry and manufacturing
solutions to the Agriculture, Automobile, Construction, Cosmetic, Food &
Beverage, Fragrance, Marine, Packaging, Paper, Pharmaceutical, Textile and
other industries. Atul Limited has six Business Divisions - Agrochemicals,
Aromatics, Bulk Chemicals & Intermediates, Colors, Pharmaceuticals &
Intermediates and Polymers. Atul Limited - incorporated in 1947 is spread over
1250 acres of land. Atul is on its growth path with a turnover over more than
Indian Rs 10 billion (>USD250 million) per annum. Atul's 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.
For Further Details:
Yogesh Kolte
Head, Corporate Communications
Atul Limited
Mobile: 98203 09121/97235 51311
Mail: Yogesh_Kolte@atul.co.in
Manish Shandilya
Madison Public Relations
Tel: 022 - 66103496
98924 00883
shandilay@fort.madisonindia.com
Atul Limited declared
unaudited results for the quarter ended June 30, 2008.
Atul Limited, a member of Lalbhai Group, announced its
unaudited results for the quarter ended June 30, 2008.
During the quarter, net sales/income from operations grew by 44% to Rs 2990
Millions as compared to the corresponding period in the previous year. While
domestic sales grew by 46%, the export sales grew by 42%. The EBITDA also grew
substantially from Rs 70 Millions to Rs 330 Millions, before considering the impact
of exchange rate difference. However, after considering the exchange rate
difference of Rs 160 Millions, the Company reported a break even as compared to
a loss of Rs30 Millions in the corresponding period in the previous year.
Commenting on the performance, the Chairman and Managing Director, Mr. Sunil
Lalbhai said:
1. The exchange rate difference of Rs160 Millions was mainly on account of
translation and unrealized losses. Further, the Company took the decision to
mark to market all the forward contracts relating to the current financial year
covering the remaining three quarters also.
2. The Company implemented in 2007-08 and is implementing new projects in the
current fiscal in its 6 businesses which are expected to bring down the costs,
increase volume and improve its market share. Thus, profitability is likely to
improve.
The Company during this fiscal will complete expansion of 2,4D, p-Cresol,
Resorcinol, Reactive, Sulphur and Vat dyes, DDS, DCDPS, certain APIs and their intermediates
and BLRs. The Company has completed expansion of p-AA and and pAAl recently.
3. During the last 5 years, brand sales have increased from nil to about Rs500
Millions in its 2 divisions. This growth is sustainable and will help the
Company to come close to the end users which in turn will improve the margins.
4. The Company has high borrowing at present. The management is taking actions
to improve its internal working as well as explore other options to strengthen
the situation. The Company has also undertaken an ERP project in the remaining
3 divisions.
5. The number of employees is at its historic low. Further actions are underway
to improve the productivity on the one hand and more importantly strengthen the
management to foster the required changes keeping the tradition of conducting
business with values on the other.
Atul
Limited declared audited results for the year ended March 31, 2008.
Atul Limited, a member of Lalbhai Group, declared audited
results for the year ended March 31, 2008.
During the year ended March 31, 2008 the operating revenues crossed an
important milestone of Rs10000 Millions; at Rs10140 Millions they recorded a
notable growth of 11% despite appreciation of Rupee by 12% which adversely
impacted export sales realization. Domestic sales grew by 20% and export sales
by 4%. In dollar terms, however the exports grew by 17%. Around 50% of the
total sales were exports.
Other income increased from Rs146 Millions to Rs277 Millions [which included
refund of Rs. 73 Millions by a coal supplier due to downward revision of prices
charged in 2005 and 2006 and exchange rate gain on foreign currency loans Rs100
Millions (previous year Rs. 42 Millions)].
Mr. Sunil Lalbhai, Chairman & CEO, gave his comments on the performance and
also the strategic initiatives being undertaken by the Company. The salient
features are as follows:
1. Despite competition intensifying and exchange rate being elusive, the steady
sales growth achieved by the Company in the last 5 years (CAGR 14%) reinforced
a benign sense of optimism in the Company. The Company also demonstrated in the
last 5 years that it had the wherewithal to counter declining margins through
higher volumes given the credibility it enjoyed with its customers
internationally.
2. The growth of 11% in sales achieved despite several odds
on input and currency fronts are the result of the assiduous efforts made by
the Company to aggressively increase its market share in certain product groups
mainly in crop protection branded goods, Aromatics and Polymers businesses.
3. The period under review witnessed a steep rise in prices
of many raw materials. The adverse impact of sulfur, used in high volumes by
the Company alone, adversely impacted by Rs280 Millions. The Company made
sincere efforts to communicate to the customers the changes taking place on the
input price front and could increase the selling prices of many products with
the active support of the customers. This partly mitigated the impact of input
price increase. The Company minimized the adverse impact on the bottom-line
through higher sales and better efficiencies. Several debottlenecking
initiatives and small yield improvement projects were successfully executed to
improve profitability.
4. Given the exports of USD 124 million and imports of USD
42 million (net receivable of USD 82 million), the sharp appreciation of Rupee
vs USD drastically affected profitability adversely to the extent of Rs410
Millions. Again, this was overcome through a dedicated focus on yield
improvement and volume growth. Despite the general increase in interest rates
the Company managed to maintain its average interest cost.
The Chairman & CEO further stated that the major actions taken during
2007-08 and planned during 2008-09 will ensure sustainable growth in the medium
term. Outlining such actions, he stated that the marketing network for branded
agrochemicals goods had been substantially strengthened, new products had been
developed and certain expansion of capacities had already been commissioned or
were on the verge of being done so, a finishing facility had been acquired and
there was a renewed focus on consumer pack adhesive business.
The Chairman & CEO ended on a positive note saying the perseverance and
never-say-die attitude of its top management team and the strategic actions
already taken and also planned will ensure rapid growth in sales and
profitability in the forthcoming years.
Atul
signs a long term contract with Stamicarbon B.V on phosgene chemistry
May 29, 2008 Mumbai: Atul Limited – one of India’s leading
specialty chemicals companies - and Stamicarbon B.V, The Netherlands – the DSM
Licensing Center (DLC) - have signed a long term contract for exclusive
manufacture and supply of a polymer performance additive based on Phosgene
Chemistry. Stamicarbon has patented the application of this
specialty/performance chemical for use in polyamides. Atul has established the
manufacturing process based on initial guidelines given by Stamicarbon.
Phosgene chemistry is a core competency of Atul’s Pharmaceuticals &
Intermediates division. Atul will manufacture the specialty chemical and DSM
will market it worldwide under their brand. The sales are expected to grow
steadily over next few years and are very promising.
While commenting on this association Mr Jagdish Shah, Executive Director, Atul
Limited said, “This is a very important milestone in Atul’s quest towards
becoming a leading supplier of phosgene-based chemicals. Association with
Stamicarbon will certainly boost the sales in a significant way.”
Further he added that, DSM has proposed to strengthen the relationship with
Atul with more custom synthesis and the development work initiated in 2008.
DSM
DSM creates innovative products and services in Life Sciences
and Materials Sciences, contributing to the quality of life. DSM’s products and
services are used globally in a wide range of markets and applications,
supporting a healthier, more sustainable and enjoyable way of living. End
markets include human and animal nutrition and health, personal care,
pharmaceuticals, automotive, coatings and paint, electrics & electronics,
life protection and housing.
Stamicarbon
Stamicarbon/DSM Licensing Center (DLC) is the licensing
subsidiary of DSM, selling licenses, know-how and related services to the
chemical and related industries. Stamicarbon / DLC is actively licensing
state-of-the-art technologies such as: Urea, Unsaturated Polyester Resin,
Caprolactam, LldPE, Symphase®, Freshure®, Subcoal and ALLINCO®.
sets new in this
year’s ISC and ICSE Results
May 21, 2008, Atul: Once again Atul Vidyalaya, based on the
1,300 acres chemical complex of the leading specialty chemicals company, Atul
Limited has as always achieved the target of 100% results in the ICSE & ISC
2008 examinations. The average performance in both ICSE & ISC and in both
Commerce & Science Streams has further improved compared to last year.
In ISC (Class 12) Mitali Hasmukh Doshi stood first in Science with an aggregate
of 93.83%. Deepshika Avinesh Dhomse with 89.00 % stood first in the Commerce
stream. The school average at 83.01% has crossed 80 for the first time. The
school highest of 93.83% is the highest ever and 5 students scored an aggregate
of over 90%
In ICSE (Class 10) Sahil Dipakkumar Kotadia stood first in the school with
95.86%. The school average at 82.05% is the highest ever. The school highest is
also the best highest ever and 14 students scored an aggregate of over 90%
Spread over 24 acres, Atul Vidyalaya was founded in 1991 by Atul Limited of
Lalbhai Group. The school aims to create a centre for education, wherein each
child is imparted knowledge that is contemporary and at the same time rooted
firmly in our cultural heritage. The school believes in providing a joyful
environment for learning, not by rote but through hands-on experience and
understanding. Atul Vidyalaya has a mission to help the child evolve into a
healthy and proactive citizen, who values Indian Heritage. The School strives
to achieve this by creating an inspiring and learning environment that reflects
and reinforces respect for the Individual.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.96 |
|
UK Pound |
1 |
Rs.78.66 |
|
Euro |
1 |
Rs.63.31 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|