Atul Ltd 2020-21

Business model A business model is not a mere representation of the operations of an organisation, but how it is endeavouring to create, deliver and capture value. Ultimately, it is tested against time and adversity. When an organisation and its approach sustain through volatile and uncertain business cycles and still create, deliver and capture value for the stakeholders, then they can well be called a model business. Research has shown that one business model may appear superior to others when analysed in isolation, but create, deliver and capture less value than others when interactions are considered. Appraising a business model in a standalone fashion may lead to faulty assessment of its strengths and weaknesses. VALUE PROPOSITIONS • Is a value-based company giving priority to people and processes • Operates seven dissimilar sub-segments of which two have both non-retail and retail verticals • Is an integrated manufacturer of 900 products and 400 formulations from basic chemicals CUSTOMER SEGMENTS • Serves 30 diverse industries • Has a portfolio of products internally classified into Life Science Chemicals and Performance and Other Chemicals segments • Is working to further broaden customer base CUSTOMER RELATIONSHIPS • Is supplying products to 4,000 customers • Has long-term contracts • Is working to promote contract manufacturing REVENUE STREAMS • Is growing in existing, related, downstream and value added products | formulations • Is adding unrelated products | formulations in a slow but steady way (such as tissue cultured date palms) • Is working to acquire and | or form joint venture entities CHANNELS • Works with 2,250 distributors and retailers across India and is further strengthening this route to market • Has its own salesforce of 484 professionals and subsidiary companies in Brazil, China, the UAE, the UK and the USA • Is further enhancing its website and promoting social media initiatives 239 568 682 817 895 998 1,159 1,168 1,508 1,746 1,964 2,307 2,510 2,403 2,639 3,052 3,460 293 368 394 449 510 754 838 962 1,108 1,227 1,205 1,400 1,514 1,908 1,839 Sales outside India ( ` cr) Sales ( ` cr) 1,575 537 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 3,845 3,824 06 Atul Ltd | Annual Report 2020-21