Atul Ltd 2010-11

Atul Ltd | Annual Report 2010-11 Polymers Products Epoxy Resins and Hardeners, Reactive diluents, Sulphones estimated at US$ 300 mn and is growing at about 10%. The two key raw materials, namely Bisphenol-A and Epichlorohydrin, are imported into India. World market for Sulphones is estimated at US$ 300 mn and is growing at about 5%. There are about 4 major companies which dominate the world marketplace. The user industries, Automobile, Construction and Paint & Coatings, are growing well, particularly in India. The Company will participate in this growth by i) significantly debottlenecking capacities of Epoxy Resins and Hardeners, ii) introducing new products and formulations, iii) improving efficiencies and iv) enhancing presence in other countries. Cheaper imports of Epoxy Resins and Hardeners will keep the contribution margins under pressure. Since the two main raw materials are imported, fluctuations in foreign exchange will impact margins. Polymers product group mainly comprises Epoxy Resins and Hardeners and formulations thereof, other components such as air release agents, reactive diluents, rheological modifiers, wetting agents, etc. and Sulphones. These products are used by Aerospace, Automobile, Construction, Defence, Electronics, Footwear, Handicraft, Marine, Paint & Coatings, Paper and Wind Energy industries. The group comprises of about 80 products and 220 formulations. During the year, sales of the product group increased from ` 268 crores to ` 438 crores. Brand sales which is currently only in India increased from ` 18 crores to ` 53 crores and accounted for 12% of the total. Export sales increased from ` 75 crores to ` 128 crores and formed 29% of the total. The Company acquired and integrated Polygrip brand and took up distribution of WD-40, a product that has good synergy with its current portfolio. It expanded capacities in selected products. World market for Epoxy Resins and Hardeners is estimated at US$ 20 bn and is growing at about 2% and Indian market is