Atul Ltd 2016-17

Atul Ltd | Annual Report 2016-17 The size of the world Dyestuff industry is estimated at US$ 5.6 bn and is growing at about 3.5%. China is the largest manufacturer of dyes followed by India. The world market for high performance pigments is estimated at US$ 4.7 bn and is growing at about 3.8%. The main user industries, namely, Paint and Coatings and Textile, will continue to grow because of increase in discretionary spending. The Company along with RACL will participate in this growth by i) broadening its market reach in new geographies, ii) increasing its manufacturing and working capital efficiencies and iii) introducing new dyes, pigments and products for non-textile applications. Fluctuations in foreign exchange and availability of raw materials may impact sales realisations. Treatment costs are expected to remain high given that the manufacture of dyes and pigments generates significant pollutants. Polymers Product groups: Epoxy Resins and Hardeners, Reactive Diluents, Sulphones, Rubber and Polyurethane based Adhesives, 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 96 synthetic products and 300 formulations. B11, P62 and P101 are some of the key products. During 2016-17, sales increased by 7% from ` 699 cr to ` 750 cr. Sales in India increased by 4% from ` 445 cr to ` 462 cr; bulk sales in India increased by 9% from ` 612 cr to ` 665 cr whereas retail sales decreased by 2% from ` 87 cr to ` 85 cr. Sales outside India increased by 13% from ` 254 cr to ` 288 cr and formed 38% of the total. Growth on account of volume was 14%. The Company completed 1 project and undertook 1 project for implementation. The world market for epoxy resins and hardeners is estimated at US$ 6.3 bn and is growing at about 2% and Indian market is estimated at US$ 250 mn and is growing at about 6%. There are about 7 major companies which dominate the world marketplace. The world market for sulphones (hardener) is estimated at US$ 320 mn and is growing at about 4%.