Welcome

May 26, 2006

Lalbhai Group

Commenced manufacturing activities in 1908

Textiles, Chemicals, Engineering, Finance

Group sales US$800 million

Health, Education, Culture

Atul Ltd

Founded in 1947 by Kasturbhai Lalbhai

Create wealth, generate employment, be self reliant

Manufacturing and marketing of chemicals

Mar 17, 1952

Manufacturing sites 2

Land 1300 acres

Effluent treatment plant 30000 cubic metres׀day

Secured solid waste disposal facility 50000 MT

Captive power plant 40 MW

Water storage (2 weirs) 16 million cubic metres

1150 houses

2 schools

Medical centre

Recreational facilities

JVs

Partner Duration Area

American Cyanamid 1947-2000 Agro׀Pharma

American Home Products

2000… Pharma

ICI 1955-1995 Dyestuffs

Ciba 1960-1999Polymers׀Pharma Intermediates

Profitfrom operations

Rs cr

127

1410

(29)

33

(7)

1522 20

(40)

(20)

0

20

40

92-93 93-94 94-95 95-96 96-97

PBDT PBT

Major Consolidation Actions

Decreased Costs Fixed (Manpower, Interest)

Variable (Electricity, Efficiency)

Increased Customer Focus Atul Americas Inc, Atul Europe Ltd, Atul China

Direct marketing to key customers

Acquired Related Businesses Atic Industries Ltd

Cibatul Ltd

Sales Rs cr

50

150

250

350

95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04

National International

-35

-15

5

25

45

65

95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04

Rs cr

Profitfrom operations

PBDT PBT

Strategy

Size and manufacturing efficiencies

Value added products (forward integration, acquisition)

Global reach and customer focus

Cost reduction and working capital management

Unification of business processes and certain functions

Strengthen research and technology

Div Key Products Rank

AG 2,4-D 4, 1 (India)

5 New agrochemicals

Brands

AR p-Cresol 1

p-Anisic aldehyde 1

BI Resorcinol 1 (India)

CO Vat dyes 2, 1 (India)

Sulphur Black 1 (India)

FL Essential oils -

PI DDS 1

Phosgene downstream

PO Epoxy resins 2 (India)

Current Status

200

400

600

800

1000

97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07

B

Sales*Rs cr

399

466 495552 563

607 595

699

831

927

* Includes operating income, excludes levies and taxes

930

738

850

100

150

200

250

300

350

97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07

B

ContributionRs cr

14637%

18939%172

37%

21539%

22641%

23639%

19232%

20330%

26529%

24029%

320

292

258

-30

10

50

90

130

97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07

B

Profitfrom operations Rs cr

62

76

47

29

113

5146

34

63

PBDT PBT

(21) (23)(5)

1522

34

7

13

33

45

125

93

68

53

99

86

03-04 04-05 05-06

A A A

Sales 566 681 831

Contribution 192 203 240

Fixed cost 143 145 156

Interest 25 22 29

PBDT 34 46 62

Depreciation 27 27 29

PBT 7 19 33

Rs cr

Financials

Projects Inv Sales Cont

AG Clodi, Indox, Sulpho and 2,4-D 19 100 27

AR p-Cres, PTSA, p-AA and misc 34 127 21

BI Resor and misc 26 108 27

CO Blue 16, Green 1 and misc 10 12 4

PI Debottlenecking 5 3

PO Debottlenecking 9 77 9

Others Efficiencies and Infrastructure 11 12

Total 114 424 103

Projects under ConsiderationRs cr

may change based on market and technology

05-06 06-07

A Indicative

Sales 831 927

Contribution 240 265

Fixed cost 156

Interest 29

PBDT 62

Depreciation 29

PBT 33

Rs cr

Financials

AG Brands, Introduction of new products + 2,4-D

AR F&F chemicals, Antioxidants

BI Resorcinol downstream, SO2׀SO3׀Cl2 downstream + Resorcinol

CO Speciality dyes

FL Essential oils

PI Phosgene based intermediates, APIs, Formulations (Wyeth)

PO Consumer marketing of resins

Direction, value added products + bulk

New Look

• Lean in numbers and levels

• Driven by highly energetic and motivated employees

• Knowledge intensive

• Modern

• Global leader in selected bulk chemicals

• Expert in developing speciality chemicals

• Customer focused

Brands AG

Brands PO

THANK YOU

On March 17, 2006

Atul completed 54 years

of service