Atul Ltd 2014-15

Atul Ltd | Annual Report 2014-15 Polymers Product Groups: Epoxy resins and hardeners, Reactive diluents, Sulphones, Others The products falling under these product groups are used by customers belonging to Aerospace, Automobile, Composites, Construction, Defence, Electrical and Electronics, Footwear, Paint and Coatings, Paper, Sports and Leisure and Wind Energy industries. The product groups comprise about 75 products and 276 formulations. B11, P62 and P101 are some of the key products. During 2014-15, sales increased by 10% from ` 633 cr to ` 697 cr. Sales in India increased by 10% from ` 415 cr to ` 458 cr. Brand sales increased by 12% from ` 85 cr to ` 95 cr. Sales outside India increased by 10% from ` 218 cr to ` 239 cr and formed 34% of the total. Growth on account of volume was 10%. Sales from new products were ` 17 cr. The Company completed 1 project and undertook 3 projects for implementation. World market for Epoxy resins and hardeners is estimated at US$ 6.3 b and is growing at about 2% and Indian market is estimated at US$ 236 m and is growing at about 5%. There are about 7 major companies which dominate the world marketplace. World market for Sulphones (a hardener) is estimated at US$ 312 m and is growing at about 4%. The user industries, Construction, Defence, Electrical and Electronics, Paint and Coatings and Wind energy are growing well, particularly in India. The Company will participate in this growth by i) widening its market reach, ii) increasing its manufacturing and working capital efficiencies, iii) generating and adding new capacities of Epoxy resins and hardeners and iv) introducing new products and formulations. Cheaper imports of Epoxy resins and hardeners may keep the contribution margins under pressure. Since the two main raw materials, namely Bisphenol-A and Epichlorohydrin, are imported, fluctuations in foreign exchange may impact margins. .