Atul Ltd 2008-09

| Annual Report 2008-09 19 Specialty & Other Chemicals segment Aromatics Products p-Cresol p-Anisic aldehyde p-Anisic alcohol Others Although volumes of key products were down, sales increased. The sales growth was primarily on account of better price realisations, which offset a steep rise in raw material costs The products made by the Division are used mainly by Flavour & Fragrance, Personal Care and Pharmaceutical Industries. Dominated mainly by multi- national companies (MNCs), these industries are doing well having a good growth potential. The main competitors are based in China and India. The Division is backward-integrated and is a global leadership in key products. Its key products are commodities in nature and therefore susceptible to volatility in margins. The Division is therefore exploring growth possibilities by introducing value-added products used in the above industries by leveraging synergy and strengths. Since exports constitute a significant portion of sales, it is exposed to variations in exchange rates. 2007-08 2008-09 % change over 2007-08 Operating revenues (Rs crores) 217 302 39 Contribution to total operating revenues (%) 21 26 5