Atul ropes in former HLL chairman to consolidate businesses

The Gujarat-based, Rs 600 crore company hopes to benefit from Datta's vast experience for the consolidation of its various businesses.

Atul, formerly known as Atul Products, is one of India's oldest chemical companies, having been incorporated in 1947. The company manufactures and exports over 500 products, including agrochemicals, bulk drugs and intermediates, cresols, dyes and dye intermediates and speciality chemicals, among other things.

It operates through six business divisions at its Atul and Ankleshwar sites, and a global network of associates and subsidiaries, including Atul Americas, Atul China and Atul Europe. Says Atul managing director and CEO Sunil S Lalbhai, “Our products are exported to over 50 countries worldwide. In fact, half our sales come from exports.“

Till about a year ago, Atul was going through turbulent times as the entire dye stuff industry, mainly concentrated in Gujarat, which houses over 50 per cent of the country's dye stuff companies, was facing a crisis. However, in view of the various measures taken by the company, it has reported better results this year.

For the quarter ended 30 September 2002, Atul's sales increased by 14 per cent to Rs 158 crore, while exports increased by 24 per cent to Rs 77 crore. The profit before tax was up by 94 per cent to Rs 9 crore while the profit after tax went up by 78 per cent to Rs 8 crore. For the six-month period ending September 2002, sales increased by 7 per cent to Rs 306 crore.

Adds Lalbhai: “The improvement was substantial because of the better performance by three of our divisions as well as due to the lower interest cost.“ In view of the numerous problems being faced by the industry, Lalbhai says the industry itself will have to find ways and means out of the morass that most units have sunk into.