Atul Ltd 2008-09

18 Management Discussion and Analysis Colors Products Textile dyes Paper dyes Pigments Others Colors segment Sales were almost stagnant owing to the global economic slowdown in the second half of the year. In particular, exports to China and a few key European customers were sluggish. The products made by this Division are used by Textile, Paper and Paint & Coatings Industries. These Industries are shifting to developing countries. Our main competitors are based in China, India, Germany and Switzerland. The companies in Europe are strong because of better reach and the ability to service customers. The Division possesses excellent and versatile facilities to manufacture different colorants and intermediates thereof. However, having high fixed costs, limited research & development, technology support and inadequate market reach pose problems. The Division is exploring the possibility of growing its existing product portfolio by introducing new ones as required by the dyestuff and textile industries in which India now has a significant presence. Chinese manufacturers are the biggest competitors with larger economies of scale. 2007-08 2008-09 % change over 2007-08 Operating revenues (Rs crores) 260 262 1 Contribution to total operating revenues (%) 26 22 (4)