1. July 9, 2008 Welcome

2. Purpose of Meeting To share with analysts and media the facts about Atul and its businesses as well as the emerging challenges, strategy and actions with the hope that all concerned are better informed about the Company, the business environment and the risks.

3. Contents 1)Genesis Purpose and Values 2)Infrastructure Unit Operations and Processes People 3)Customers 4)Financials 2007-08 Highlights 5)Challenges Strategy 6)Vision

4. Genesis

5. Lalbhai Group  Commenced manufacturing activities in 1908  Textiles, Chemicals, Engineering, Finance  Group sales US$900 million  Health, Education, Culture

6. Arvind Ltd

7. Indian Institute of Management, Ahmedabad

8. Atul Ltd  Founded in 1947 by Kasturbhai Lalbhai  Manufacturing and marketing of chemicals  Create wealth, generate employment, be self reliant

9. A moment of historic significance

10. JVs PartnerDurationArea American Cyanamid1947-2000Agro׀Pharma American Home Products 2000…Pharma ICI1955-1995Dyestuffs Ciba1960-1999 Polymers׀Pharma Intermediates

11. Purpose and Values

12. Purpose We are a conglomerate committed to significantly enhance value for all our stakeholders by  fostering a spirit of continuous learning and innovation  having people who practice values and high standards of behaviour  providing high quality products and services and becoming the most preferred supplier  seeking sustained and dynamic growth and securing long-term success  taking responsible care of the surrounding environment and  improving the quality of life in the communities we operate in.

13. Values Integrity Understanding Excellence Unity Responsibility Customer First Honoring Commitment

14. Infrastructure

15. Manufacturing sites3 Land (land surplus 600 acres out of 1300 acres) 1300 acres Effluent treatment plant30000 m 3 ׀day Secured solid waste disposal facility50000 MT Captive power plant40 MW Water storage (2 weirs)2 mn m 3

16.  1150 houses  2 schools  Medical centre  Recreational facilities

18. An aerial view of Atul site

19. research building, ankleshwar

20. research laboratory, ankleshwar

21. TE Photo technology office, atul

22. vat dyes plant, atul

23. p-aa plant, ankleshwar

24. p-c plant, ankleshwar

25. distillation column, atul

27. ◄

31. Unit Operations and Unit Processes Atul has knowledge, experience and expertise in almost all the Unit Operations and Processes used in Chemical Industry. The Company is endeavoring to use science and technology to enhance competitiveness and thus improve its cost position and cut down waste generation.

32. Manufacturing Capabilities* * Indicative Unit processesUnit operations  Chlorination  Adsorption  Diazotisation  Crystallization  Ethoxylation  Distillation  Friedel-Craft  Evaporation  Hydrogenation  Solvent extraction  Kolbe-Schmitt  Phosgenation  Ullmann  Wittig

33. People

34. Founded on Knowledge EducationNos PhDs55 MBAs54 CA|ICWA26 BE|BTech | ME|MTech169 Other post graduates163 Other graduates126 Diploma engineers51 Others14 Total658

35. Better HR Practices by strengthening MPP, PMS and T|D A BFF 6000 AAA No. of Employees Revenue Rs lac per Employee manpower productivity 275 475 D4 managers

36. Customers No of customers: ~5000 No of products : ~500 No of countries: ~60

37. Customers World-wide

39. Financials

40. Rs cr Revenues Last 10 years CAGR: 8% Last 4 years CAGR: 14%

41. Rs cr Contribution

42. Rs|kg Price Impact of RMs per annum basis Sulphur: Rs87 cr MnO 2 : Rs22 cr Sulphur MnO 2

43. Rs cr Profit from operations

44. Rs cr Borrowings %

45. Interest to Sales %

46. 07-08 Highlights

47. Highlights In a challenging business environment in 2007-08  USD depreciated 12 % against INR  Raw material prices increased multi-fold  Attrition rate remained high (though now reducing) Atul Ltd held its fort  Revenues grew 11 %  EBIDTA grew 10 %  Net profit grew 30 % We have the resolve to stay on course and are putting plans in place with an endeavour to significantly improve our performance.

48. Adverse Impact of RM and Rupee Amount Unprecedented rise in key RMs17 Significant Rupee appreciation41 Total 158 Partially offset by: Coal refund7 Forex gains10 Total 217 Rs cr

49. Challenges

50. People … Retaining … Recruiting Working capital, ROCE … Inventories … Receivables Fixed cost … Particularly AG and CO … Other costs % Contribution and PBT … Innovation … Sourcing of raw materials MIS for review, decision making … ERP … Business processes Growth … Business development … Logistics

51. Strategy

52. Strategy themes  Grow business … by maintaining leadership in existing products … by introducing new products … by developing own brands  Improve business processes, workflow and MIS … by stabilising|enhancing ERP  Better HR practices … by strengthening MPP, PMS and T|D  Attain lowest possible costs … by innovation in R|D, TE and manufacturing … by centralizing procurement … by enhancing people productivity

53. Strategy themes continued  Unlock value … by spinning off some businesses into separate companies … by promoting JV companies

54. Vision

55. We will become a financially robust, dynamic enterprise, globally known for its products and services and for its respected people, practices and values.

56. Vision 2011 - 12 Financial… Achieve significant improvement in Sales, PBT and ROCE Marketing … Strengthen leadership position in selected existing products and introduce synergistic new products Technology … Make manufacturing more able to compete globally in terms of cost and excel in SHE and GHK Research … Attain a much stronger R|D so as to improve processes and synthesize new products People … Build a team that is prepared to face the emerging challenges of business, have world class quality of MPP, PM and TD

57. Thank You