Atul Ltd 2020-21

45 Corporate Overview 01 - 21 Statutory Report 22 - 87 Financial Statements 88 - 229 The products falling under these product groups are used by customers belonging to the Aerospace, Automobile, Composites, Construction, Defence, Electrical and Electronics, Footwear, Paint and Coatings, Paper, Sport and Leisure, and Wind Energy industries. The product groups comprise 96 synthetic products and 300 formulations. B11, P62 and P101 are some of the key products. Synthetic and formulated products are versatile and have significant applications in Aerospace, Automobile, FRP Composites, Wind Energy, Electrical and Electronics, Paint and Coatings, Construction, Defence, Sports and Leisure, and Paper industries. During 2020-21, sales decreased by 16% from ` 1,041 cr to ` 878 cr. Sales in India decreased by 7% from ` 642 cr to ` 596 cr; bulk sales in India decreased by 11% from ` 517 cr to ` 460 cr, whereas retail sales increased by 9% from ` 125 cr to ` 136 cr. Sales outside India decreased by 29% from ` 399 cr to ` 282 cr and formed 32% POLYMERS Product groups: Epoxy resins, Curing agents, Reactive diluents, Sulfones, Protective paints and Adhesives based on Epoxy, Synthetic rubber, Polyurethane, Cyanoacrylate, PVC and PVA of the total. Degrowth on account of volume was 22%. The world market for epoxy resins and curing agents is estimated at US$ 7.6 bn and is growing at about 3%, while the Indian market is estimated at US$ 285 mn and is growing at about 8%. There are seven major companies that dominate the world marketplace. The world market for sulfones (curing agents) is estimated at US$ 393 mn and is growing at about 6%. The user industries, Construction, Defence, Electrical and Electronics, Paint and Coatings are growing well, particularly in India. The Company will participate in this growth by - i) improvingmanufacturingandworking capital efficiencies, ii) debottlenecking and adding capacities, iii) introducing new products and iv) widening market reach in new geographies. Cheaper imports and new entrants in the market will keep the market competitive and may keep margins under pressure. Since the two main raw materials, namely Bisphenol-A and Epichlorohydrin, are imported, fluctuations in foreign exchange may impact margins. apparel industries affected sales of Sulphur Black and reactive dyes, whereas sales of vat dyes has reached to pre-Covid levels due to improved demand for workwear. Rudolf Atul Chemicals Ltd (RACL), a joint venture company formed in 2011-12, provides a complete range of textile chemicals in Indian market; its sales increased by 9% from ` 82 cr to ` 89 cr, primarily because of volume. The size of the world Textile Dyestuff industry is estimated at US$ 6.5 bn and is growing at about 3%. China continues to be the largest manufacturer of dyes followed by India. The world market for high performance pigments is estimated at US$ 5.5 bn (constitutes both organic and inorganic pigments) and is expected to growat about 4% in the coming years. The main user industries, namely, Textile, Paper, Paint and Coatings will continue to grow because of increasing demands from the middle-class population and increase in discretionary spending. The Company along with RACL will participate in thisgrowthby - i) increasing manufacturing and working capital effi ciencies, ii) introducing new dyes, pigments, textile chemicals and products for non-textile applications, iii) broadening market reach in new geographies and iv) investing in newer capacities of existing and new products. Fluctuations in foreign exchange and availability of raw materials may impact sales realisations. Treatment costs are expected to remain high because of stricter regulatory norms and increasing demand for cleaner and greener products from user industries.