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Atul Ltd |
Annual Report 2009-10
Dear Friends,
2009-10
commenced with the concern that the world
economy may further worsen and plunge into a long
depression. However, as the year moved on, there were
tentative indications of improvement in India, particularly
seen during the second half even as the large developed
economies continued to post a negative growth in GDP. The
key developing economies, China and India in particular,
grew in GDP though the rate declined in spite of high internal
demand. The price of crude oil came down from the peak
it had reached in 2008. Indian Re strengthened against the
USD as well as Euro after weakening to an all time low.
Indeed, we now live in a world that is highly interdependent
and an era of considerable uncertainties.
The overall performance of
Chemical Industry
deteriorated
during the year, not only because of the economic downturn,
but also due to the fundamental changes taking place in the
structure of the Industry. Environment protection and energy
conservation are the two foremost challenges for chemical
companies as they endeavour to become competitive and
customer focused.
Amidst this background, the
performance of the
Company for 2009-10
was as follows:
1) Sales were higher by less than 1% in terms of value and
18 % in terms of volume
2) Variable cost as a per cent of operating revenues at 69%
was similar
3) Fixed expenses (before interest and depreciation) as a
percent of operating revenues at 19% were higher by 1%
4) EBITDA margin before foreign exchange impact at 13%
was lower by 1%
‘We will work with a
sense of purpose, with an
inspiring visionand with a
strategy of transformation.
Therefore, we will not only
face the contemporary
challenges, but will also
pledge our unflinching
allegiance to a future that
has multi-dimensional
multipliers for growth’
Sunil S Lalbhai
9
Overview by the Chairman