Corporate Overview Statutory Reports Financial Statements 27 The product groups comprise 488 products. The products are used by customers belonging to the Textile, Paint and Coatings and Paper industries. Vat green 1, Sulphur black 1 and Pigment red 168 are some of the key products. During 2023-24, sales decreased by 13% from ` 624 cr to ` 546 cr. Sales in India marginally increased from ` 329 cr to ` 334 cr. Sales outside India decreased by 28% from ` 295 cr to ` 212 cr and formed 39% of the total sales. The decrease in sales on account of volume was 3%. Fluctuation in cotton prices affected the competitiveness of textile producers engaged in exports. Colors Product groups: dyestuffs, pigments, dye intermediates, textile chemicals, others The products falling under the bulk chemicals product groups are mainly used for internal consumption, while the products in the intermediate product groups are used by customers belonging to the Cosmetic, Dyestuff, Pharmaceutical and Tyre industries. The product groups comprise 23 products. Resorcinol, Resorcinol–formaldehyde resin and 1,3–Cyclohexanedione are some of the key products. During 2023-24, sales reduced by 15% from ` 316 cr to ` 268 cr. Sales in India decreased from ` 188 cr to ` 158 cr while sales outside India decreased from ` 128 cr to ` 110 cr. Sales outside India formed 41% of the total. Growth on account of volume was 10%, which was negated by price erosion. The world market for Resorcinol (a key product ) is estimated at US$ 378 mn Bulk Chemicals and Intermediates Product groups: bulk chemicals, adhesion promoters, others and is growing at about 3.9%. The size of the world Tyre industry is estimated at US$ 287 bn and is growing at about 8%. The size of the world Chlor-alkali industry is estimated at US$ 72 bn and is growing at about 5%. The Tyre industry is projected to grow supported by the resurgence in Asia Pacific. The captive consumption of bulk chemicals is expected to grow as the Company expands the manufacturing capacities of various products. The Company will participate in this growth by - i) increasing its manufacturing efficiencies, ii) debottlenecking and adding capacities, iii) introducing downstream products and iv) widening its market reach. The demand and price of bulk chemicals are cyclical in nature. Fluctuations in foreign exchange may impact sales realisations. High inflation in textile-importing countries and higher inventory levels across the textile value chain further impacted the demand for textile dyes and chemicals. This in turn affected the selling prices and margins of dyes and chemicals. Lower demand for exterior paints in Europe and other markets contributed to a significant loss in sales of high-performance pigments. The domestic denim market improved during the second half of the year 2023-24, resulting in better demand for Sulphur black. Rudolf Atul
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