Atul Ltd 2011-12

33 Colors Products Textile dyes, Textile chemicals, Pigments, Paper dyes, Inks, Others Colors Business mainly comprises dyes for natural fibres such as Vat, Sulphur Black and Reactive and in a small way high performance pigments. The products are used by customers belonging to Textile and Paint & Coatings industries. The Business comprises about 500 products. M. Dohmen S. A., a JV company, manufactures dyes for synthetic fibres such as speciality Disperse. The products made by M. Dohmen are mainly used by customers (belonging to Textile industry) supplying automotive textiles to Automobile industry. Rudolf Atul Chemicals Ltd, a JV company formed during the year, will provide a complete range of textile chemicals where the Business had made a beginning and had a minuscule presence in Indian market During the year, sales increased by 6% to ` 346 cr. Sales in India increased by 2% to ` 185 cr. Export sales increased by 12% to ` 161 cr and formed 47% of the total. Degrowth on account of volume was 5%. World market for dyes and textile chemicals is estimated at US$ 11 bn and is growing at about 2% and Indian market is estimated at US$ 800 mn and is growing at about 3%. China is the largest manufacturer of dyes followed by India. World market for high performance pigments is estimated at US$ 3.5 bn and is growing at about 4%. The main user industry, namely, Textile, is heavily dependent on the markets of the USA and Europe; due to difficult economic situation in some of these countries, the industry has shown considerably sluggish growth. The growth of domestic Textile industry has been impacted by the closure of textile units in Tirupur and the volatility in cotton prices. Automobile industry is growing well, particularly in India. The Company is trying to overcome downward pressure on prices by i) debottlenecking capacities and thus reducing the cost per unit, ii) introducing new dyes, pigments and textile chemicals, iii) improving efficiencies and iv) widening its market reach, particularly in selected countries in South America, Asia and Africa, with the cooperation of M. Dohmen and Rudolf. Fluctuations in foreign exchange will impact sales realisations. Treatment costs are expected to remain high given that the manufacture of dyes generates significant pollutants.