Download - Atul Presentation
-
8/12/2019 Atul Presentation
1/98
Presentation
to
Analysts
May 7, 2013 No of main slides: 85Time: 30 minutes
-
8/12/2019 Atul Presentation
2/98
-
8/12/2019 Atul Presentation
3/98
Contents
General Overview 1-21
Financial Overview 22-
Business Overview 57-104
-
8/12/2019 Atul Presentation
4/98
Lalbhai Group
Commenced manufacturing activities in 1908
Textiles, Chemicals, Engineering
Group sales US$1.5 billion
Health, Education, Culture
1|85
-
8/12/2019 Atul Presentation
5/98
Shri Kasturbhai Lalbhai2|85
-
8/12/2019 Atul Presentation
6/98
Founder Director, Reserve Bank of India3|85
-
8/12/2019 Atul Presentation
7/98
Founder Chairman, Indian Institute of Technology, Mumbai4|85
-
8/12/2019 Atul Presentation
8/98
Founder Board Member Indian Institute of Management, Ahmedabad5|85
-
8/12/2019 Atul Presentation
9/98
Founder Director, ICICI6|85
-
8/12/2019 Atul Presentation
10/98
Atul Ltd
Founded in 1947 by Kasturbhai Lalbhai
Manufacturing and marketing of chemicals
Create wealth, generate employment, be self reliant
7|85
f hi i i ifi
-
8/12/2019 Atul Presentation
11/98
A moment of historic significance
8|85
-
8/12/2019 Atul Presentation
12/98
Purpose
We are a conglomerate committed to significantly enhance value
for all our stakeholders by
fostering a spirit of continuous learning and innovation
using science and technology in a responsible way
providing high quality products and services and becoming the
most preferred supplier
seeking sustained and dynamic growth and securing long-term success
having people who practice values and high standards of behaviour
taking care of the surrounding environment and
improving the quality of life in the communities we operate in
9|85
-
8/12/2019 Atul Presentation
13/98
Eventful 2012-13
Inauguration of ARDP facility by HonbleChief Minister of Rajasthan, Shri Ashok Gehlot
Transforming economy and ecology of arid region
10|85
-
8/12/2019 Atul Presentation
14/98
Inauguration of ARp-C plant by HonbleChief Minister of Gujarat, Shri Narendra Modi
Eventful 2012-13Protecting environment
11|85
-
8/12/2019 Atul Presentation
15/98
Inauguration of Rudolf Atul Chemicals Ltd by Padma Vibhushan Dr M.M. Sharma
Eventful 2012-13Building partnership
12|85
-
8/12/2019 Atul Presentation
16/98
Inauguration of PI R&D by Padma Vibhushan Dr M.M. Sharma
Eventful 2012-13Fostering innovation
13|85
-
8/12/2019 Atul Presentation
17/98
Commissioning of Anisole plantphase 1 Jun 12
Commissioning of 2,4-DCP plant Jun 12
Commissioning of 3,3-DDS plant Sep 12
Commissioning of BLR plant Sep 12
Completion of labour settlement-Valsad site (4.5 years) Sep 12
Completion of labour settlement-Ankleshwar site (6 years) Oct 12
Eventful 2012-13
14|85
-
8/12/2019 Atul Presentation
18/98
IDG CIO 100
Eventful 2012-13
Information Week Silver EDGE
Enhancing capability
15|85
-
8/12/2019 Atul Presentation
19/98
HR Leadership AwardWorld HR Congress
Eventful 2012-13
Shram Ratna AwardGovernment of Gujarat
Institutionalising processes
16|85
-
8/12/2019 Atul Presentation
20/98
Eventful 2012-13
KIs No Impact
Yield 32 8
RMC 49 7
Solvent Reduction 36 2
Quality 13 0Utilities 46 4
Products from EEW 2 1
Effluent Reduction 19 1
Time cycle 26 6
Batch size 14 1
Productivity 11 1
Total 248 31
`cr
17|85
R
-
8/12/2019 Atul Presentation
21/98
998
1159 1168
1508
1746
1964
500
1250
2000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Revenues
`crPeriod CAGR1997-2002 9%
2002-2007 12%
2007-2012 15%
18|85
-
8/12/2019 Atul Presentation
22/98
Profit before tax(from operations)
`cr
35
51
80
129116
187
25
60
95
130
165
200
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Period CAGR
1997-2002 15%
2002-2007 0%
2007-2012 40%
19|85
h i
-
8/12/2019 Atul Presentation
23/98
Share price movement
0
250
500
2000-01 2002-03 2004-05 2006-07 2008-09 2010-11 2012-13
10,000 invested in 2000 has given 3,06,351 in 2012
CAGR 33%
`
Source : Capitaline
20|85
d i d
-
8/12/2019 Atul Presentation
24/98
Industries Served
Aerospace Agriculture Automobile
ConstructionFlavour & Fragrance Paint & Coatings
Personal Care Pharmaceutical Textile
21|85
-
8/12/2019 Atul Presentation
25/98
Financial Performance
-
8/12/2019 Atul Presentation
26/98
Financials 2012-13
12-13A
11-12A
Inc | (dec) %
CY vs PY
Sales 1964 1746 12
Operating & other income 56 46 22
Total revenue 2020 1792 13
Material consumed 1143 1060 8
Employee benefit expenses 128 117 9
Other expenses 483 400 21
Exchange (gain) | loss 3 (12) -
EBIDTA 269 203 33
EBIDTA % 14 12 -
Interest 29 31 6
Interest AS-16 4 12 -
PBDT 233 172 35Depreciation 49 44 11
PBT before exceptional income 184 128 43
Exceptional income 5 6 (29)
P B T 192 122 57
P A T 136 88 55
RoCE % 21 17 -
cr
22|85
Q l l
-
8/12/2019 Atul Presentation
27/98
Quarterly sales
404
447 444 451
496
537
440
491
350
400
450
500
550
600
Q1 Q2 Q3 Q4
2011-12 2012-13
cr
23|85
-
8/12/2019 Atul Presentation
28/98
822 810 840939
1,044
11%13%
18%17%
21%
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1000
1200
2008-09 2009-10 2010-11 2011-12 2012-13
Average capital employed # Return on average capital employed % # *
# Excluding capital work-in-progress * Excluding exceptional income| expenses
cr
Return on capital employed
24|85
-
8/12/2019 Atul Presentation
29/98
Turnover per employee
2,746
2,5632,534
2,737 2,703
0.420.46
0.600.64
0.73
0.20
0.40
0.60
0.80
1.00
1.20
2,000
2,200
2,400
2,600
2,800
2008-09 2009-10 2010-11 2011-12 2012-13
Employees Turnover per employee
Head
count
c
r
25|85
-
8/12/2019 Atul Presentation
30/98
578568
682
817895
9981159
1168
1508
17461964
500
1250
2000
Revenues
Last 5 years CAGR: 15%
`cr
Last 10 years CAGR: 13%
26|85
P fit B f T
-
8/12/2019 Atul Presentation
31/98
36
719 20 26
3551
80
129116
187
5
100
195
Profit Before Tax(from operations)
`cr
Last 10 years CAGR: 18%
Last 5 years CAGR: 40%
27|85
C i P fi bili
-
8/12/2019 Atul Presentation
32/98
Comparative Profitability
Particulars 09-10A
10-11A
11-12A
12-13A
Sales 1168 1508 1746 1964
EBIDTA from operations before exchange diff 152 203 215 266
EBIDTA from operations before exchange diff 13% 13% 12% 14%
Exchange difference (9) (9) (12) 3
EBIDTA after exchange diff 142 194 203 269
EBIDTA from operations before exchange diff 12% 13% 12% 14%
Non recurring income | (expense) - 10 6 5
PBT 80 139 122 192
PAT 53 96 88 136
RoCE % 13 18 17 21
`cr
28|85
R ti
-
8/12/2019 Atul Presentation
33/98
Ratios
Particulars 2012-13 2011-12
Debt|equity 0.47 0.60
Interest coverage 8.13 4.70
DSC 2.92 1.94
Current 1.4% 1.3%
EPS 45.69 29.70
29|85
-
8/12/2019 Atul Presentation
34/98
Working Capital Management
W ki C it l
-
8/12/2019 Atul Presentation
35/98
Working Capital
NoDs
Particulars Mar 13 Mar 12 Inc | (dec)
Inventories 56 58 (2)
Debtors 62 68 (6)
Other current assets 23 20 3
Gross Working Capital 141 146 (5)
Current liabilities 67 74 (7)
Net Working Capital 74 72 2
30|85
W ki C it l
-
8/12/2019 Atul Presentation
36/98
Working Capital
Particulars Mar 13 Mar 12 Inc|(Dec)
Inventories 308 295 13
Debtors 361 368 (7)
Other current assets 123 104 19
Gross Working Capital 792 767 25
Current liabilities 363 375 (12)
Net Working Capital 429 392 37
` cr
31|85
-
8/12/2019 Atul Presentation
37/98
Cash Flow and Borrowings
C h Fl f O ti
-
8/12/2019 Atul Presentation
38/98
Cash Flow from Operations
2012-13 2011-12
Operating profit * 262 194
Inventories (13) (31)
Trade & other receivables (22) (80)
Creditors and other payables (6) 76
Cash generation from operations 221 159
Tax payments 53 38
Net cash flow from operating activities 168 121
* before WC changes and exchange difference on FCL
`cr
32|85
Fund Flow
-
8/12/2019 Atul Presentation
39/98
Fund Flow
Sources 2012-13 2011-12
EBIDTA 266 215
Increase | (decrease) in borrowing (25) 60
Exchange rate difference 3 (12)
Exceptional income 5 7
Total 249 270
`cr
33|85
F d Fl
-
8/12/2019 Atul Presentation
40/98
Fund Flow
Uses2012-13
A
2011-12
A
Interest and finance charges (net) 33 43
Purchase of fixed assets and capital advances 104 107
Working capital increase 37 18
Dividend payments 16 16
Direct taxes 56 34
Investment in group companies 4 42
Changes in non-current assets (1) 19
Total 249 270
`cr
34|85
P iti f b i
-
8/12/2019 Atul Presentation
41/98
Mar
11
Mar
12
Mar
13
Rupee 202 233 262
Foreign Currency 113 142 88
Total 315 375 350
Long-term 156 183 196
Short-term 159 192 154
Total 315 375 350
Position of borrowingscr
317
375350
250
300
350
400
Mar-11 Mar-12 Mar-13
156183
196159
192
154
100
150
200
250
Mar-11 Mar-12 Mar-13
Long-term Short-term
35|85
B i g
-
8/12/2019 Atul Presentation
42/98
Borrowings
349369
428
368
295315
375350
1.28 1.23
0.990.80
0.61 0.56 0.60
0.470.93
0.600.74 0.86
1.35
1.851.94
2.92
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
0
100
200
300
400
500
600
05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13
Debt Debt to equity DSCR
cr
36|85
Interest to Sales
-
8/12/2019 Atul Presentation
43/98
10.0
8.0
6.4
4.2
3.43.7
3.3 3.3 3.5
2.21.7
2.4
1.7
0
2
4
6
8
10
00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13
Interest to Sales
%
37|85
-
8/12/2019 Atul Presentation
44/98
Performance and Other ChemicalsAromatics
P
-
8/12/2019 Atul Presentation
45/98
Purpose
AR Division will be a world-class business, offering its customers in
Personal Care and other chosen industries high quality products and
services in a cost effective manner.
38|85
User Industries
-
8/12/2019 Atul Presentation
46/98
User Industries
Personal Care
Pharmaceutical
Flavors & Fragrance (F&F)
Dyestuff
Paper
No of Customers ~350
39|85
Key Products
-
8/12/2019 Atul Presentation
47/98
Key Products
Product Group Market Share(2012-13)
Competition
p-Cresol 24% China (6)
p-AA 51% Europe (1), India (1)
p-AAl 65% India (2)
p-Cd 39% China (1)
40|85
Financials
-
8/12/2019 Atul Presentation
48/98
Financials
cr
Particulars2010-11
A2011-12
A2012-13
A
Sales 349 469 658
No of people 197 226 234
41|85
Sales
-
8/12/2019 Atul Presentation
49/98
Sales
349
469
658
300
485
670
10-11 11-12 12-13
cr
40% growth over previous year
42|85
W f d K A ti
-
8/12/2019 Atul Presentation
50/98
Way forward - Key Actions
Maintain cost and volume leadership in existing products
Enter into value added downstream products
Explore related opportunities in Personal Care and F&F
43|85
Ri k
-
8/12/2019 Atul Presentation
51/98
Risks
Chinese competition mainly in p-C and p-AA
Non compliance to REACH regulations
44|85
-
8/12/2019 Atul Presentation
52/98
Performance and Other ChemicalsBulk Intermediates
Purpose
-
8/12/2019 Atul Presentation
53/98
Purpose
BI Division will supply bulk chemicals to other Divisions in a cost
effective manner and grow in speciality chemicals and intermediates.
45|85
U I d t i
-
8/12/2019 Atul Presentation
54/98
User Industries
Tyre and Rubber
Dyestuff
Paper
Pharmaceutical
No of Customers 264
46|85
Key Products
-
8/12/2019 Atul Presentation
55/98
Key Products
Product Group Market Share
(2012-13)
Competition
Resorcinol 32% domestic Japan (2), USA (1),
China (8)
2% global
CSA 14% domestic India (6)
Oleum 65%, SO3,Caustic Soda
Captiveconsumption
47|85
Financials
-
8/12/2019 Atul Presentation
56/98
Financials
cr
Particulars2010-11
A2011-12
A2012-13
A
Sales 98 108 123
No of people 258 254 241
48|85
Sales
-
8/12/2019 Atul Presentation
57/98
Sales
98108
123
0
50
100
150
10-11 11-12 12-13
cr
15% growth over previous year
49|85
Way forward Key Actions
-
8/12/2019 Atul Presentation
58/98
Way forward - Key Actions
Expand Resorcinol capacity
Enter into new intermediates3
Introduce products based on Hydrogen
50|85
Risks
-
8/12/2019 Atul Presentation
59/98
Risks
60% of the Divisions business is commodity based and driven by
highly uncertain trends
Too many new players making business unviable
Increasing Chinese imports
51|85
-
8/12/2019 Atul Presentation
60/98
Performance and Other ChemicalsColors
P rpose
-
8/12/2019 Atul Presentation
61/98
Purpose
CO Division aims to be a reliable global supplier of colorants required
for different facets of human life. Its products will find applications
in industries such as textile, pharmaceutical, personal care, paper,
paint and coatings, packaging, foods and electronics.
It will manufacture in a responsible way and compete in the market
place on the basis of service, quality and cost and continuously
improve processes so as to deliver better value.
52|85
User Industries
-
8/12/2019 Atul Presentation
62/98
User Industries
Product Group User Industries
Textile dyes Textile
Paper dyes Paper
HP pigments Paint and Coatings
No of Products 550
No of Customers 1350
2/553|85
Key Products
-
8/12/2019 Atul Presentation
63/98
Key Products
Product GroupMarket Share
(2012-13)Competition
Vat dyes 12% Europe (1), China (4), India (1)
Reactive dyes 1.2% Europe (2), India (8-10)
Sulphur Black 8% Europe(1), China (3)
HP pigments 2.4% Europe (3)
54|85
Financials
-
8/12/2019 Atul Presentation
64/98
Financials
Particulars2010-11
A2011-12
A2012-13
A
Sales 325 342 330
No of people 950 941 885
cr
55|85
Sales
-
8/12/2019 Atul Presentation
65/98
325
342
330
250
300
350
10-11 11-12 12-13
cr
56|85
Way forward - Key Actions
-
8/12/2019 Atul Presentation
66/98
y y
Increase Vat dyes global market share through M Dohmen - Atul group
Capacity expansion of key Vat dyes
Increase Reactive dyes market share with specialities
Business growth through new High Performance Pigments and Digital
Printing Inks
Multiply business in Sulphur Black and grow in Denim segment
Expand synergistic businessTextile Chemicals through Rudolf Atul
Reduce fixed cost through restructuring
57|85
Risks
-
8/12/2019 Atul Presentation
67/98
Risks
Reduced demand for niche products
Increased presence of SMEs in specialties on a global level
Limited product portfolio in High Performance Pigments
Minimal exposure to new synergistic business segments
58|85
-
8/12/2019 Atul Presentation
68/98
Life Science ChemicalsCrop Protection
Purpose
-
8/12/2019 Atul Presentation
69/98
Purpose
We, Crop Protection Division, are in the business of servicing thegrowing needs of food and fiber
We leverage our competency in chemistry and provide farmsolutions to create lush yields
We strive for building relationship with farmers across the globe
59|85
User Industries
-
8/12/2019 Atul Presentation
70/98
CP brands are available across > 25000 retail outlets
Use dus es
User Industry Agriculture
No of products 59
No of customers 1945
Exports 150
Brand 1700
Bulk 95
60|85
Key Products
-
8/12/2019 Atul Presentation
71/98
y
Product GroupMarket Share
(2012-13)Competition
2,4 D group 12%USA (1), Australia (1), South America
(1), Europe (1), China (3), India (7)
Indoxacarb 7% USA (1), India (1)
61|85
Financials
-
8/12/2019 Atul Presentation
72/98
cr
Particulars2010-11
A2011-12
A2012-13
A
Sales 306 342 387
No of people 364 391 381
62|85
Sales
-
8/12/2019 Atul Presentation
73/98
306
342
387
250
325
400
10-11 11-12 12-13
cr
13% growth over previous year
63|85
Brands
-
8/12/2019 Atul Presentation
74/98
Brands
64|85
Way forward - Key Actions
-
8/12/2019 Atul Presentation
75/98
Way forward Key Actions
Introduce new products coming off patent
Expand herbicide capacity
Expand brand business
65|85
Risks
-
8/12/2019 Atul Presentation
76/98
Business is dependent on monsoon | weather and pest attack
Low price competitors from China
Competition from new entrants and low priced suppliers in domestic
herbicide business
Patent and data protectionIndia now is a signatory to IPR
Entry of international generics companies in India
Increased usage of GM crops
66|85
-
8/12/2019 Atul Presentation
77/98
Life Science ChemicalsPharmaceuticals and Intermediates
Purpose
-
8/12/2019 Atul Presentation
78/98
PI Division will contribute to the wellness of mankind by catering to the
growing needs of Pharmaceutical Industry. It will supply pharma
intermediates and APIs in a cost effective manner using novel
technologies.
67|85
User Industries
-
8/12/2019 Atul Presentation
79/98
Product Group User Industries
Pharmaceutical
Intermediate and APIsPharma
Phosgenated ChemicalsPharma, Polymers, Crop
Protection
SulfonesPharma, Aerospace, Electronics,
Polymers, Paper
No of Products 40
No of Customers 100
68|85
Key Products
-
8/12/2019 Atul Presentation
80/98
Product Group Market Share(2012-13)
Competition
Pharmaceutical
Intermediates and APIs
-
8/12/2019 Atul Presentation
81/98
cr
Particulars2010-11
A2011-12
A2012-13
A
Sales 95 106 114
No of people 207 215 231
70|85
Sales
-
8/12/2019 Atul Presentation
82/98
95
106
114
90
120
10-11 11-12 12-13
cr
10% growth over previous year
71|85
Way forward - Key Actions
-
8/12/2019 Atul Presentation
83/98
Sustainable Development approach
Expand capacity- Sulfones, Phosgene, Phosgenated &
Pharmaceutical intermediates
Improve production- Debottlenecking & Process Intensification.
Push sales in Japan & Europe
Growth through custom synthesis and contract manufacturing
Inorganic growth- acquisition
72|85
Risks
-
8/12/2019 Atul Presentation
84/98
Forex fluctuation (70% exports)
New regulatory requirements in USA (GDUFA) and Europe
73|85
-
8/12/2019 Atul Presentation
85/98
Performance and Other ChemicalsPolymers
Purpose
-
8/12/2019 Atul Presentation
86/98
Purpose
PO Division will offer best in class products and services to Automotive,
Composites, Footwear, Furniture, Paint and Coatings and Civil industries
across the world with bonding and coating solutions in a cost effective
manner.
74|85
User Industries
-
8/12/2019 Atul Presentation
87/98
Product Group User Industries
Epoxy Paint & Coatings
Civil
Power Transmission
Wind energy
Defence
Automotive
Aerospace
No of Products 300
No of Direct Customers 500
75|85
User Industries
-
8/12/2019 Atul Presentation
88/98
Product Group User Industries
Brands Footwear
Handicrafts
Civil
Jewelry
Automotives
Furniture
Engineering
Art and Craft
No of Brands 24
No of Distributors 565
76|85
Key Products
-
8/12/2019 Atul Presentation
89/98
Product Group
Market Share
(2012-13)
Domestic
Competition
Epoxy 18% USA (1), China (2),Fareast (3), India (1)
Brands 10% India (7)
77|85
Financials
-
8/12/2019 Atul Presentation
90/98
cr
Particulars2010-11
A2011-12
A2012-13
A
Sales 364 406 386
No of people 245 253 271
78|85
Sales
-
8/12/2019 Atul Presentation
91/98
cr
364
406386
200
305
410
10-11 11-12 12-13
79|85
Brands
-
8/12/2019 Atul Presentation
92/98
80|85
Polygrip
-
8/12/2019 Atul Presentation
93/98
81|85
WD-40
-
8/12/2019 Atul Presentation
94/98
82|85
Atul-Elkay
-
8/12/2019 Atul Presentation
95/98
83|85
Way forwardKey Actions
-
8/12/2019 Atul Presentation
96/98
Increase sale of high margin products
Diversify and expand product portfolio
Add new business verticals of strategic importance
Expand brand business
Reduce cost and improve working capital cycle
Grow through Inorganic and Organic route
84|85
Risks
-
8/12/2019 Atul Presentation
97/98
Price and margin sensitive business
Growth depends on Infrastructure development
Limited ability to pass the price increases
85|85
-
8/12/2019 Atul Presentation
98/98
Thank You