Atul Ltd 2008-09

7 I have in this communication focused on 6 key initiatives, mentioning in brief the logic behind them and the benefits expected from them. These initiatives may be seen as a continuation of the endeavours mentioned in my letter in the last Annual Report. Firstly, we are hoping to establish 3 more 100% overseas subsidiary companies to reach out to new customers and serve them better. This reflects our keenness to work more closely with the customers and also enhance our market presence. Essentially, we are committed to improve our customer service on the one hand and on the other, we are endeavouring to widen our customer reach. These initiatives are somewhat long-term in nature, but they will help boost sales as well as derisk the business. Secondly, we are working to further improve our manufacturing efficiencies and also bring down other costs to enhance our competitiveness. During the year, we have improved yields, reduced utilities, brought down time cycles and cut down solvent losses. We are reducing working capital and reviewing capex proposals with much more rigour. We are certain that this rigour will go a long way not only in optimising the resources used, but also in improving the quality of the decision making process. Thirdly, we are introducing more value added products which comprise brands and non-brand products by leveraging our current product portfolio and strengths. During the year under review, for example, brand sales increased from Rs47 crores to Rs82 crores. This is only a beginning of what we wish to do in brands. Our vision for the coming 5 years is to serve the end users by providing excellent products in a cost effective way. Through this initiative, we will seek sustainable growth. Fourthly, we are putting in place systems and procedures across the Company to ensure that we become more process driven as we grow in terms of locations and size. We are amongst the first Indian companies to implement Oracle 12i and the latest version of PeopleSoft. This will improve the quality of MIS in terms of accuracy and speed and thereby decision making and customer service. It will bring uniformity in practices and standardisation of processes. The quality of training and development will also get aligned with our aspirations. Fifthly, we realise fully that our long-term future will be secure only if we are proactive and accord high priority to environment protection. During the year, we have taken major actions to reduce waste load and several new actions are underway. This is an area where it is possible to strive for the theoretical potential. What are required are determination and a sense of responsibility. Atul set up treatment facilities long before the related laws were enacted, and this proactive approach continues. Lastly and sixthly, we are in the process of formally integrating our social works projects under one umbrella. As a company founded by Shri Kasturbhai Lalbhai, Atul has the heritage and legacy of quietly fulfilling its social obligations; we remain committed to this cause. A lot has been done, still much more needs to be done. For every generation and for every activity, there is scope to improve, and given the commitment and creativity of Atul people, there is every chance that we will, barring unforeseen circumstances, sustain the performance. Established in 1947, Atul has survived the test of time, and I do expect that with every passing year, we will become better, grow faster and work smarter for all our stakeholders and thus give back much more than what we may take. In doing so, we will also fulfil the dreams of our life. With best wishes, Sincerely, Sunil S Lalbhai