Atul Ltd 2017-18

Atul Ltd | Annual Report 2017-18 Performance and Other Chemicals Segment Particulars 2017-18 2016-17 % change Sales ( ` cr) 2,024 1,832 10% Share in total sales (%) 66% 69% -3% Performance and Other Chemicals Segment consists of 4 Sub-segments, namely, Aromatics - II, Bulk Chemicals and Intermediates, Colors and Polymers. Aromatics – II Product groups: Intermediates, Perfumery, Others The products falling under these product groups are mainly used by customers belonging to Fragrance and Personal Care industries. The product groups comprise about 20 products. para Cresol, Sodium Sulphate and Sodium Sulphite are some of the key products. During 2017-18, sales increased from ` 537 cr to ` 539 cr. Sales in India increased by 22% from ` 123 cr to ` 150 cr. Sales outside India decreased by 6% from ` 414 cr to ` 389 cr and formed 72% of the total. Growth on account of volume was 7%. The Company completed 1 project and undertook 1 project for implementation. The world market for para Cresol (a key product) is estimated at 64,000 mt and is growing at about 2%. Though earlier the product used to be manufactured in the UK and the USA, China and India are now major suppliers of the product. The size of the world Fragrance industry is estimated at US$ 12.5 bn and is growing at about 4%. The size of the world Personal Care industry is estimated at US$ 400 bn of which personal care ingredients segment is US$ 21 bn and is growing at about 4%. The main user industries, namely, Fragrance and Personal Care, are growing well due to an improved standard of living. The Company will participate in this growth by i) broadening its market reach, ii) increasing its manufacturing efficiencies, iii) generating and adding capacities and iv) introducing new products. Higher raw material prices which can not be passed on to customers impacted profitability. Fluctuations in foreign exchange may impact sales realisations.