Atul Ltd 28 Annual Report 2023-24 The products falling under these product groups are used by customers belonging to the Adhesives, Aerospace and Defence, Automotive, Composites, Construction, Electrical and Electronics, Food and Beverage packaging, Marine, Paint and Coatings, Sport and Leisure, Transport and Wind Energy industries. The product groups comprise 48 synthetic products and 272 formulations. Liquid epoxy resins, solid epoxy resins, solvent cut resins, cycloaliphatic resins, epoxy phenol novolac, multifunctional resins, aromatic amines and their adducts, 4,4’-Diaminodiphenyl sulfone, 3,3’-Diaminodiphenyl sulfone and 4,4’-Dichlorodiphenyl sulfone are some of the key products. During 2023-24, sales volume increased by 18%, however, due to lower sales price, sales value decreased by 6% from ` 1,268 cr to ` 1,194 cr. Sales in India increased by 2% from ` 700 cr to ` 712 cr. Sales outside India decreased by 15% from ` 568 cr to ` 482 cr and formed 40% of the total. Growth on account of volume was 18%. Polymers - Performance Materials Product groups: epoxy resins, curing agents, reactive diluents, accelerators and catalysts and sulfones The world market for epoxy resins and curing agents is estimated at US$ 12.4 bn and is growing at about 3%, while the Indian market is estimated at US$ 410 mn and is growing at about 8%. Asia Pacific has been the leading consumer of epoxy resins, supported by the high demand from India. Infrastructure development along with increasing automotive production has fuelled demand for paints and coatings in this region. The world market for sulfones (curing agents) is estimated at US$ 420 mn and is growing at about 6%. Aerospace, automobile, defence and medical applications are key macro-level factors influencing industrial growth. In India, major growth is observed in Construction, Defence, Electrical and Electronics and Paint and Coatings industries. The Company will participate in this growth by – i) adding new capacities for key products and debottlenecking capacities ii) improving manufacturing and working capital efficiencies, iii) introducing new products and iv) expanding market reach to new geographies. Lower demand in export markets will keep the market competitive in the near term and may keep margins under pressure. Chemicals Ltd (RACL), a joint venture company formed in 2011-12, provides a complete range of textile chemicals in the Indian market; its sales increased by 25% from ` 111 cr to ` 138 cr, primarily because of an increase in volume by 33%. The size of the world Textile Dyestuff industry is estimated at US$ 6.6 bn and is expected to grow by about 3% in the coming years. China continues to be the largest manufacturer of dyes followed by India. The world market for high-performance pigments is estimated at US$ 5.9 bn (constitutes both organic and inorganic pigments) and is expected to grow at about 4% in the coming years. The main user industries, namely, Textile, Paper, Paint and Coatings will continue to be influenced by macro-economic and geo-political factors. The Company along with RACL is expected to grow by - i) improving capacity utilisation and managing cash flows ii) broadening the market reach in new geographies, iii) introducing new dyes and textile chemicals and iv) developing newer applications for existing products. High inflation, fluctuations in foreign exchange, limited availability of the US dollars in South American, Asian and African markets, low demand and competition from China may impact sales. Treatment costs are expected to remainhighbecauseof stricter regulatory norms and increasing demand for the implementation of green chemistry principles and ESG compliance.
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