Atul Ltd 2010-11

Colors product group mainly comprises dyes for natural fibres such as Vat, Sulphur, Reactive and Direct and to a very small extent those for synthetic fibres such as Acid and Disperse, used by Textile industry and some by Paper. The group comprises of about 400 products. During the year, sales of the product group increased by 13% to ` 325 crores. Export sales formed 44% of the total. The Company formed partnership by investing 50% in M. Dohmen S.A., a manufacturer of dyes for synthetic fibres, having manufacturing facilities in Germany, Korea and Switzerland. World market for dyes and auxiliary chemicals is estimated at US$ 11 bn and is growing at about 2% and Indian market is estimated at US$ 300 mn and is growing at about 3%. There are few companies based in Europe and China which dominate the world marketplace. China is the largest manufacturer of dyes followed by India. Colors Products Textile dyes, Pigments, Paper dyes, Others The main user industry, namely, Textile, is growing well because of the increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) debottlenecking capacities, ii) introducing new dyes, pigments and textile chemicals, iii) significantly improving efficiencies and iv) enhancing the presence in other countries, particularly in South America. It will also form long- term alliances with other companies. Fluctuations in foreign exchange will impact sales realizations. Given that manufacture of dyes generates pollutants, treatment cost will remain high. 28 | 29