Atul Ltd 2019-20

Corporate Overview Statutory Reports Financial Statements 01-21 22-91 92-228 28 Atul Ltd | Annual Report 2019-20 1.2 Technology absorption 1.2.1 Research and Development i) Specific areas in which Research and Development (R&D) was carried out by the Company: T he Company focused its R&D efforts on process improvement of its existing products, recovery of products from pollutants and process development of new products and formulations. ii) Benefits derived from R&D: T he Company increased yield of 18 products, decreased consumption of raw materials in five products, decreased consumption charge of two solvents, recovered ten products from pollutants and introduced 40 new products and formulations. iii) Future plan: T he Company is investing further in people and equipment so as to strengthen its R&D and thereby enhance its capability. iv) R&D expenditure: ( ` cr ) Capital Recurring Total Total R&D expenditure as a percentage of total sales 4.56 26.78 31.34 0.82% 1.2.2 Technology absorption, adaptation and innovation i) Efforts in brief, made towards technology absorption, adaptation and innovation: T he Company upgraded many of its processes and operations by imbibing new technology using more efficient equipment and automation. ii) Benefits derived as a result of the above efforts, for example, product improvement, cost reduction, product development and import substitution: T he above efforts have resulted in improvement in quality, increase in yields, increase in throughput and decrease in manpower. iii) Technology, if any, imported during the last three years reckoned from the beginning of the financial year: The Company did not import any technology. 1.3 Foreign exchange earnings and outgo 1.3.1 Export sales: activities, development initiatives and future plans The Company sold its products in 87 countries, directly and through its subsidiary companies in the USA, the UK, the UAE, China and Brazil. Sales outside India* decreased by 4% from ` 1,874 cr to ` 1,794 cr mainly due to lower prices as compared to the previous year. The Company is taking further steps to strengthen its international marketing network. *Free On Board (FOB) value 1.3.2 Total foreign exchange earnings and outgo ( ` cr) Particulars 2019-20 2018-19 Earnings Exports – FOB value 1,794.40 1,874.27 Dividends, etc 2.15 0.19 Outgo Payment for raw materials, books and periodicals, dividend, etc 683.39 764.78