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Management Discussion and Analysis
Colors
Products
Textile dyes Paper dyes Pigments Others
Colors segment
Sales were almost stagnant owing to the
global economic slowdown in the second
half of the year. In particular, exports to
China and a few key European customers
were sluggish.
The products made by this Division are
used by Textile, Paper and Paint &
Coatings Industries. These Industries are
shifting to developing countries. Our
main competitors are based in China,
India, Germany and Switzerland. The
companies in Europe are strong because
of better reach and the ability to service
customers.
The Division possesses excellent and
versatile facilities to manufacture
different colorants and intermediates
thereof. However, having high fixed
costs, limited research & development,
technology support and inadequate
market reach pose problems. The Division
is exploring the possibility of growing its
existing product portfolio by introducing
new ones as required by the dyestuff and
textile industries in which India now has
a significant presence. Chinese
manufacturers are the biggest
competitors with larger economies of
scale.
2007-08
2008-09
% change over 2007-08
Operating revenues (Rs crores)
260
262
1
Contribution to total operating revenues (%)
26
22
(4)