Atul Ltd 2011-12

Atul Ltd | Annual Report 2011-12 Polymers Products Epoxy Resins and Hardeners, Reactive diluents, Sulphones, Others Polymers Business 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 90 products and 240 formulations. During the year, sales increased by 11% to ` 487 cr. Sales in India increased by 11% to ` 345 cr. Brand sales which is currently only in India increased by 43% to ` 76 cr. Export sales increased by 11% to ` 142 cr and formed 29% of the total. Growth on account of volume was 5%. The Company signed a joint venture Agreement with Elkay Kimyasal Maddeler San. Ve Tic. A.S., a reputed manufacturer of stone care chemicals; these will have an excellent fitment with the product portfolio of the Company. Two debottlenecking projects already under implementation will be completed during 2012-13. World market for Epoxy Resins and Hardeners is estimated at US$ 6 bn and is growing at about 2% and Indian market is estimated at US$ 210 mn and is growing at about 10%. There are about 7 major companies which dominate the world marketplace. 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 4%. 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) widening its market reach. 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.