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Atul Ltd | Annual Report 2017-18
1.
Conservation of energy, technology absorption and foreign exchange earnings and outgo
1.1 Conservation of energy
1.1.1 Measures taken:
i)
Replacement of reciprocating chillers by energy efficient screw chillers
ii) Utilisation of excess hydrogen for steam generation
iii) Utilisation of steam condensate from process plants in boilers
1.1.2 Additional investments and proposals, if any, being implemented:
i)
Recovery of heat from cooling operations to heat water
ii) Recovery and use of steam condensate from distribution headers
iii) Replacement of conventional light fittings by LED light fittings
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:
The 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. The R&D departments also helped
in troubleshooting in manufacturing departments.
ii) Benefits derived from R&D:
The Company increased yield of 8 products, decreased consumption of raw materials of 9 products, decreased
consumption charge of 3 solvents, recovered 4 products from pollutants and introduced 37 new products and
formulations.
iii) Future plan:
The 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
2.32
20.63
22.95
0.75
1.2.2 Technology absorption, adaptation and innovation
i)
Efforts in brief, made towards technology absorption, adaptation and innovation:
The Company upgraded many of its processes and operations by imbibing new technology, using more efficient
equipment and incorporating automation.
ii) Benefits derived as a result of the above efforts, for example, product improvement, cost reduction, product
development and import substitution:
The 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 3 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 plan
The Company sold its products in 85 countries, directly and through its subsidiary companies in the USA, the UK, the UAE,
China and Brazil. Sales outside India* increased by 11% from
`
1,332 cr to
`
1,478 cr mainly due to higher volumes
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
2017-18
2016-17
Earnings
Exports – FOB value
1,477.69
1,332.49
Dividends, etc
6.25
5.27
Outgo
Loan repayment
69.16
218.08
Payment for raw materials, books and periodicals, dividend, etc
602.50
411.07