Atul Limited · NSE:ATUL

Atul — Investor Presentation (May 2024)

58 slides from Atul's investor presentation, May 2, 2024

  1. Slide 1: Our endeavour: Endure, Enhance, Excel

    Our endeavour Endure Enhance Excel May 2, 2024

  2. Slide 2: Disclaimer

    Disclaimer Atul Ltd (Atul) may, from time to time, make written and oral forward-looking statements, in addition to the statements contained in the filings of the Company with BSE Ltd and National Stock Exchange of India Ltd, and our reports to shareholders. The Company does not undertake to update

  3. Slide 3: Agenda

    Agenda 1 2 3 4 Background Performance trend Overview 2023-24 Way forward 5 6 7 8 9 Servicing society Chemical industry updates Financials 2023-24 Sub-segments overview Interactions Agenda 3 | 58

  4. Slide 4: Chemicals and daily life

    Chemicals and daily life More than 96% of all manufactured goods are directly enabled by chemistry Source: American Chemistry Council Background 4 | 58

  5. Slide 5: Industries served

    Industries served Agriculture Automobile Composites Construction Defense Dyestuff Electrical and Cosmetics electronics Flavour Food Fragrance Glass Home care Paint and Paper Horticulture Coatings Soap and Personal care Pharmaceuticals Rubber detergent Sport and Textile Tyre Wind energy leisure Backg

  6. Slide 6: about Atul

    about Atul founder first site economist Kasturbhai Lalbhai spread across 1,300 acres Balwantrai Mazumdar (1894 –1980) (1902 – 1981) three dreams … create wealth for rural India … generate employment on a large scale … make India self-reliant incorporation chemical engineer September 5, 1947 Siddhart

  7. Slide 7: Profile

    Profile several 1 st products manufactured 8 production first time sites in India 4,000 30 industries 83 countries customers 900 products | 73 mw captive 32 MLD 5 international 400 formulations 140 brands subsidiary entities power plants effluent treatment for sales Background 7 | 58

  8. Slide 8: Entities

    Entities Atul Bioscience Ltd Atul Brasil Quimicos Ltda DPD Ltd Atul China Ltd Atul Rajasthan Date Palms Ltd Atul Europe Ltd 4 Amal Ltd Atul Foundation Atul Club Atul Ltd Atul Ireland Ltd Rudolf Atul Chemicals Ltd Atul Middle-East FZ-LLC Atul Institute of Vocational Excellence Anaven LLP Valsad Insti

  9. Slide 9: Sub-segments

    Sub-segments Crop Protection Aromatics Pharmaceuticals – Retail Bulk Chemicals Polymers – and Colors Performance Intermediates Materials Crop Protection Polymers – Floras – Bulk Actives Retail Background 9 | 58

  10. Slide 10: Performance (consolidated)

    Performance consolidated ` cr There is no gain without struggle. - Martin Luther King Junior Performance trend 10 | 58

  11. Slide 11: Performance (standalone)

    Performance standalone ` cr Performance trend 11 | 58

  12. Slide 12: Revenue and PBT

    Revenue and PBT consolidated ` cr +63% 5,428 +67% 688 +63% 3,338 +122% 412 +96% 2,043 +481% 186 1,044 32 2007-08 2012-13 2017-18 2022-23 2007-08 2012-13 2017-18 2022-23 Revenue PBT Performance trend 12 | 58

  13. Slide 13: Sales and PBT from operations

    Sales and PBT from operations standalone ` cr +64% 5,002 +84% 730 +55% 3,052 +112% 397 +97% 1,964 +434% 187 998 35 2007-08 2012-13 2017-18 2022-23 2007-08 2012-13 2017-18 2022-23 Sales PBT from operations Performance trend 13 | 58

  14. Slide 14: Capital expenditure trend

    Capital expenditure1 trend consolidated ` cr 874 591 504 365 374 323 193 214 211 2 143 137 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Sales yet to realise: ` 1,500 cr + ` 800 cr 1 expenditure amount differs from that capitalised 2 related only to LER project under implementati

  15. Slide 15: Fitment to strategy

    Fitment to strategy why AkzoNobel and Atul formed Anaven Atul Anaven Atul AkzoNobel Cl2 Caustic 2,4-D H2 MCA soda NaOH Sales CSA Atul to invest in new plant of 300 TPD to meet entire future HCl requirement of Cl2 of Anaven Sales  AkzoNobel wanted local presence in the fast growing Indian market to

  16. Slide 16: What went well

    What went well 2023-24  two sub-segments generated higher PBT compared to 2022-23 (lower than the best achieved)  both retail sub-segments turned PBT positive  three subsidiary | associate companies generated higher PBT compared to 2022-23  5% increase in volume over 2022-23 on standalone basis

  17. Slide 17: What did not go well

    What did not go well 2023-24 Internal  delay in implementation of projects  delay in reaching expected performance in product quality and production | sales volume  unexpected breakdowns in manufacturing  low capacity utilisation External  global supply chain impacted by geo-political tensions

  18. Slide 18: Securing future

    Securing future ever changing Sales Commercial  CRM  iSourcing | iSupplier  Planvisage  warehouse management Manufacturing Finance  people productivity  Oracle ERP (across entities)  process efficiency  robotic automation Technology Information technology  debottlenecking  pervade visualis

  19. Slide 19: Values and attributes

    Values and attributes never changing Integrity Continuous improvement Bias for action Understanding Attention to detail Unity Structured approach Responsibility Learning agility Excellence Creativity Values 19 | 58

  20. Slide 20: Atul Foundation

    Atul Foundation Education Empowerment Health Relief Infrastructure Conservation Serving society 20 | 58

  21. Slide 21: New initiatives in CSR

    new initiatives in CSR reached 10,224 students through 117 Adhyapikas trained 23 Anujas to provide pre-primary education in anganwadis educated 3,220 children through mobile science van​ educated 781 health practitioners to take care of mothers and child during first 1,000 days Serving society 21 |

  22. Slide 22: Atul Foundation Health Center

    Atul Foundation Health Center providing consultations through 4 in-house and 14 visiting doctors to the people from Atul and surrounding villages Serving society 22 | 58

  23. Slide 23: World chemical market 2022

    World chemical market 2022 Euro bn Country Production Imports Exports Consumption Net imports China 2,390 208 194 2,404 14 USA 606 147 170 583 -23 Germany 225 133 150 207 -18 Japan 227 52 80 199 -28 India 115 89 42 162 47 France 139 64 76 128 -11 South Korea 139 59 94 103 -36 World 5,622 1,922 1,744

  24. Slide 24: Indian chemical industry

    Indian chemical industry production versus consumption Euro bn Year Production Exports Imports Consumption 2018 102 28 48 121 2019 101 30 49 119 2020 88 27 42 104 2021 99 33 63 129 2022 115 42 89 162 CAGR 3% 11% 17% 7% CAGR of consumption significantly higher than CAGR of production Source: VCI Chem

  25. Slide 25: Chemical production

    Chemical production % growth over PY Country 2020 2021 2022 2023 Netherlands -0.2 4.1 -4.4 -13.2 South Korea -3.1 8.6 -9.9 -10.7 Germany -1.3 5.7 -12.1 -10.4 EU27 -2.2 6.1 -6.3 -8.0 Japan -12.2 5.1 -3.8 -6.4 Brazil 0.0 3.6 1.1 -5.9 USA -4.9 4.2 2.2 -1.0 India -5.4 8.0 4.2 0.1 Russia 7.4 7.1 -2.3 4.6

  26. Slide 26: Trade deficit – Chapter 29

    Trade deficit – Chapter 29 US$ bn Imports Exports Trade deficit Country 20-21 21-22 22-23 23-24 20-21 21-22 22-23 23-24 20-21 21-22 22-23 23-24 China 9.0 12.5 13.2 11.8 2.4 2.4 1.5 1.2 -6.6 -10.1 -11.7 -10.6 Others 10.7 16.0 15.7 15.5 15.5 19.6 19.9 17.8 4.8 3.6 4.2 2.3 Total 19.7 28.5 29.0 27.3 17.

  27. Slide 27: Profit and loss (standalone)

    Profit and loss standalone ` cr Particulars 2023-24 2022-23 % Revenue from operations 4,358 5,062 (14%) Expenditure 3,797 4,366 (13%) Other income 135 199 (32%) EBIDTA 696 895 (22%) EBIDTA % 16% 18% (2%) Interest 2 2 - Depreciation 184 163 13% PBT 510 730 (30%) Tax 125 178 (30%) PAT 385 552 (30%) Ro

  28. Slide 28: Group entities

    Group entities ` cr 25 55 158 200 182 49 44 50 46 160 126 132 15 45 150 34 2 3 41 (2) (2) 540 20 100 16 16 24 73 (7) 35 -5 50 14 30 (51) -15 25 40 FY 22 Atul Bioscience FY 23 Ltd FY 24 FY 22 FY 23 DPD Ltd FY 24 FY 22 FY 23LLP Anaven FY 24 80 86 150 139 60 60 120 80 111 50 61 65 100 40 40 60 43 28 22

  29. Slide 29: Profit and loss (consolidated)

    Profit and loss consolidated ` cr Particulars 2023-24 2022-23 % Revenue from operations 4,726 5,428 (13%) Expenditure 4,089 4,653 (12%) Other income 58 115 (50%) EBIDTA 695 890 (22%) EBIDTA % 15% 16% (1%) Interest 11 8 (38%) Depreciation 243 198 (23%) PBT before share of associate and JV 441 684 (36

  30. Slide 30: Segment results

    Segment results consolidated ` cr Life science chemicals Performance and other chemicals Particulars 2023-24 2022-23 Inc | (dec) % 2023-24 2022-23 Inc | (dec) % Net revenues from operations* 1,427 1,959 (27%) 3,453 3,706 (7%) Earnings before interest and tax 203 423 (52%) 240 240 - EBIT % 14% 22% -

  31. Slide 31: Working capital

    Working capital consolidated ` cr Particulars Mar 24 Mar 23 Inc | (dec) Inventories 650 820 (170) Debtors 927 845 82 Other current assets 271 236 35 Gross working capital* (A) 1,848 1,901 (53) Current liabilities (B) 776 722 54 Net working capital (A-B) 1,072 1,179 (107) * excluding liquid investmen

  32. Slide 32: Cash flow

    Cash flow consolidated ` cr Particulars 2023-24 2022-23 Profit before tax 451 688 Adjustment for depreciation, finance costs and others 223 189 Share of profit on associate and JV (10) (4) Changes in working capital and others 111 27 Cash generated from operations 775 900 Income tax paid net of refu

  33. Slide 33: Aromatics: products and market share

    Performance and other chemicals Life science chemicals Sub segment: Aromatics Product groups: Intermediates and API intermediates Serving: Chemical additives, Fragrance, Personal care and Pharmaceutical industries Product Market share Competition (2023-24) p-Cresol 48% Asia (3), North America (1) p-

  34. Slide 34: Aromatics

    Aromatics Sales End user industry prospects 3y CAGR: 5% ` cr Additives Fragrance Personal care 1,222 1,147 1,173 World, $ bn 4 14 30 939 Value (4)% CAGR 5% 3.8% 5% Volume 12% India, $ mn 37 680 695 CAGR 5% 5% 5-6% 2020-21 2021-22 2022-23 2023-24 Source: Customer interactions | market reports Unreali

  35. Slide 35: Bulk Chemicals and Intermediates: products and market share

    Performance and other chemicals Sub segment: Bulk Chemicals and Intermediates Product groups: Bulk chemicals, Adhesion promoters, Intermediates Industries served: Cosmetics, Chemical, Dyestuff and Tyre Product Market share Competition (2023-24) Resorcinol Significant (India) Asia (4) Insignificant (

  36. Slide 36: Bulk Chemicals and Intermediates

    Bulk Chemicals and Intermediates Sales End user industry prospects 3y CAGR: 1% ` cr Global tyre market (mn units) 491 CAGR: 3% 454 354 368 Value (25)% Volume 4% 2020-21 2021-22 2022-23 2023-24 2023 2024 2025 2026 2027 2028 2029 *inclusive of internal sales Relevant products: Resorcinol and RF resins

  37. Slide 37: Atul Products Ltd

    Atul Products Ltd Sales End user industry prospects ` cr Chloro alkali market (US$ bn) CAGR: 5% 65* 2023-24 2023 2024 2025 2026 2027 2028 2029 * commercial production started from Dec 2023 Unrealised CAPEX Way forward  stabilise manufacturing operations  reach full capacity utilisation unrealised

  38. Slide 38: Anaven LLP

    Anaven LLP Sales End user industry | applications 3y CAGR: (32)% ` cr  Personal care 160 182 Ultra pure  Pharmaceutical (<0.01% DCA)  Food High pure Purity and  Personal care | cosmetics 73 applications (<0.05% DCA |  PVC additives >99.95% MCA) Technical global  Water-soluble polymers Value (6

  39. Slide 39: Colors: products and market share

    Performance and other chemicals Sub segment: Colors Product groups: Textile dyes, Pigments Industries served: Textile, Paint and Coatings and Paper Product group Market share Competition (2023-24) Textile dyes – Vat Significant (India) India (15), Asia (>15), Significant (World) Rest of world(>6) Te

  40. Slide 40: Colors

    Colors Sales End user industry prospects US$ bn 3y CAGR: (3)% ` cr 1,200 80 937 85 871 910 805 789 840 67 71 65 59 70 57 612 50 51 60 50 715 627 35 593 41 482 494 540 557 546 333 455 200 Value (13)% 124 148 150 152 152 156 Volume (3)% 49 52 52 58 54 57 75 29 34 34 37 41 42 45 2010 2017 2019 2021 202

  41. Slide 41: Rudolf Atul Chemicals Ltd

    Rudolf Atul Chemicals Ltd Sales End user industry prospects US$ bn 3y CAGR: 16% ` cr 250 138 16 54 120 138 111 125 106 110 10 9 26 8 80 8 24 20 22 180 88 Value 25% 50 7 18 Volume 33% 4 11 78 80 92 102 55 35 2010 2017 2019 2021 2022 2023 (E) 2030 (P) 2020-21 2021-22 2022-23 2023-24 Apparel Technical

  42. Slide 42: Crop Protection – Bulk actives: products and market share

    Life science chemicals Sub segment: Crop Protection – Bulk actives Product groups: Herbicides, Insecticides and Fungicides Industries served: agriculture and public health Product Market share* Competition (2023-24) 2,4-D and downstream products 10% Australia (1), Asia (6), Europe (1), North America

  43. Slide 43: Crop Protection – Bulk Actives

    Crop Protection – Bulk Actives Sales End user industry prospects 3y CAGR: 2% ` cr 953 8.3 bn people by 2030 748 491 Value (48)% Volume (25)% 2021-22 2022-23 2023-24 agriculture and allied businesses remain attractive Unrealised CAPEX Way forward  launch new products and formulations  expand regula

  44. Slide 44: Crop Protection – Retail: brands and market share

    Life science chemicals Sub segment: Crop Protection – Retail Product groups: Herbicides, Insecticides, Fungicides, Biostimulants and adjuvants Industries served: agriculture Brand Market share* Competition (2023-24) Zura 24% Dhanuka, Meghmani, Adama Salix 28% Dhanuka, Meghmani, Adama Cyno 34% Cortev

  45. Slide 45: Crop Protection – Retail

    Crop Protection – Retail Sales End user industry prospects 3y CAGR: 10% ` cr 203 197 8.3 bn people by 2030 176 Value 3% Volume 20% 2021-22 2022-23 2023-24 agriculture and allied businesses would remain attractive for a long time New patented formulation Way forward  continue to develop patented nov

  46. Slide 46: Brands

    Brands Sub-segments overview 46 | 58

  47. Slide 47: Pharmaceuticals: products and market share

    Life science chemicals Sub segment: Pharmaceuticals Product groups: APIs and API intermediates Industries served: Pharmaceutical Product group Market share Competition (2023-24) APIs and API intermediates Insignificant (world) India, Asia, Europe, North America Dapsone 50% India, Europe Phosgene che

  48. Slide 48: Pharmaceuticals

    Pharmaceuticals Salesa End user industry prospects 3y CAGR: 7% ` cr 28% Europe 23% 38% 246 244 b North America 2022 A: $ 58 bn Asia-Pacific 227 2030 P: $ 91 bn 2022 A: $ 46 bn 2022 A: $ 78 bn 2030 P: $ 75 bn 213 b 2030 P: $ 125 bn 183 Value 15% Volume 17% 11% Global API market LAMEA 2022 A: $ 205 bn

  49. Slide 49: Polymers – Performance materials: products and market share

    Performance and other chemicals Sub segment: Polymers – Performance materials Product groups: Epoxy resins, Curing agents, Reactive diluents, Accelerators and Sulfones Industries served: Adhesives, Aerospace and Defence, Automotive, Composites, Construction, Electrical and electronics, Marine, Paint

  50. Slide 50: Polymers – Performance materials

    Polymers – Performance materials Sales End user industry prospects 3y CAGR: 18% ` cr Paint and coatings Composites Electrical and electronics 1,348 1,280 3% 7% ` ‘000 cr 1,210 6% 43 37 18 728 39 31 16 Value (5)% Volume 18% 2023-24 2025-26 2023-24 2025-26 2023-24 2025-26 Applications Applications App

  51. Slide 51: Polymers – Retail: brands and market share

    Polymers – Retail Product groups: synthetic rubber based adhesives, polyurethane adhesives, epoxy adhesives and sealants, cyanoacrylates and maintenance spray Industries served: footwear, mattresses, foam and furnishing, construction, automobile and household Brand Market share* Competition (2023-24

  52. Slide 52: Polymers – Retail

    Polymers – Retail Sales End user industry prospects 3y CAGR: 18% ` cr 228 229 200 SR, SBS epoxy maintenance and PU 141 Value (7)% Volume 7% India, $ mn 150 415 25 CAGR 8% 9% 8% 2020-21 2021-22 2022-23 2023-24 Offering solutions Way forward  expand route to market in India construction footwear auto

  53. Slide 53: Brands: Polygrip, Lapox and Lacare

    Brands Polygrip Lapox and Lacare Sub-segments overview 53 | 58

  54. Slide 54: Sub segment: Floras

    Sub segment: Floras Sales World date palm plantation 3y CAGR: 15% (lakh hectares) ` cr % increase | 52 Year World area harvested (lakh ha) decrease 47 2013 11.56 41 42 2014 11.52 -0.35 2015 11.23 -2.52 2016 11.83 5.34 2017 11.88 0.42 Volume: (20%) 2018 12.43 4.63 2019 12.83 3.22 2020 12.58 -1.95 202

  55. Slide 55: Atul Rajasthan Date Palms Ltd

    Atul Rajasthan Date Palms Ltd Agriculture scenario Indicators India Global Agribusiness industry (agriculture, forestry and fisheries) US$0.44 bn US$3.60 tn Share of agribusiness in GDP 17.30% 4.40% Population in 2050 (est) 1.67 bn 10 bn Rural population in 2022 67% 43% Employment in agriculture 44%

  56. Slide 56: DPD Ltd, UK (Expansion)

    DPD Ltd, UK (Expansion) Phase – 1 Phase – 2 Sub-segments overview 56 | 58

  57. Slide 57: Valsad Institute of Medical Sciences Ltd

    Valsad Institute of Medical Sciences Ltd 3D view of architect Actual construction of proposed 200 bed Super Speciality hospital at Valsad (under implementation) Sub-segments overview 57 | 58

  58. Slide 58: Contact us

    Contact us Website L i n k e dI n F a c e bo o k www.atul.co.in www.linkedIn.com/company/atul-limited www.facebook.com/AtulLimited Atul Ltd Atul 396 020, Gujarat India investors@atul.co.in | (+91 2632) 230000 58 | 58

Atul — Investor Presentation (May 2024) on 6ix