Atul Ltd 2015-16

Atul Ltd | Annual Report 2015-16 During 2015-16, (external) sales decreased by 12% from ` 100 cr to ` 88 cr. Sales in India increased by 4% from ` 55 cr to ` 57 cr. Sales outside India decreased by 31% from ` 45 cr to ` 31 cr and formed 35% of the total. Degrowth on account of volume was 11%. The Company completed 1 project. The size of world Chlor-alkali industry is estimated at US$ 70 bn and is growing at about 6%. World market for Resorcinol (a key product) is estimated at US$ 320 mn and is growing at about 3%. The size of world Tyre industry is estimated at US$ 220 bn and is growing at about 6.5%. The captive consumption of bulk chemicals is expected to grow as the Company expands manufacturing capacities of its various products. Tyre industry is expected to grow further because of increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) widening its market reach, ii) increasing its manufacturing efficiencies, iii) generating and adding capacities and iv) introducing downstream products. The demand and prices of bulk chemicals are cyclical in nature. Fluctuations in foreign exchange may impact sales realisations. Colors Product groups: Textile dyes, Pigments, Paper dyes, Inks, Textile chemicals, Others The products falling under these product groups are used by customers belonging to Textile, Paint and Coatings and Paper industries. The product groups comprise about 550 products. Green 1, P Red and Sulphur Black are some of the key products. During 2015-16, sales decreased by 23% from ` 515 cr to ` 398 cr. Sales in India decreased by 10% from ` 250 cr to ` 224 cr. Sales outside India decreased by 34% from ` 265 cr to ` 174 cr and formed 44% of the total. Degrowth on account of volume was 18%. The Company completed 4 projects and undertook 2 projects for implementation. Rudolf Atul Chemicals Ltd (RACL), a joint venture company formed in 2011- 12, provides a complete range of textile chemicals in Indian market; increased its sales by 42% from ` 43 cr to ` 61 cr, primarily because of volume. The size of world Dyestuff industry is estimated at US$ 6 bn and is growing at about 3.5%. China is the largest manufacturer of dyes followed by India. World market for high performance pigments is estimated at US$ 4.3 bn and is growing at about 2.7%.