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Atul Ltd | Annual Report 2010-11
Polymers
Products
Epoxy Resins and Hardeners, Reactive diluents, Sulphones
estimated at US$ 300 mn and is growing at about 10%. The two
key raw materials, namely Bisphenol-A and Epichlorohydrin, are
imported into India. World market for Sulphones is estimated
at US$ 300 mn and is growing at about 5%. There are about 4
major companies which dominate the world marketplace.
The user industries, Automobile, Construction and Paint &
Coatings, are growing well, particularly in India. The Company
will participate in this growth by i) significantly debottlenecking
capacities of Epoxy Resins and Hardeners, ii) introducing new
products and formulations, iii) improving efficiencies and
iv) enhancing presence in other countries.
Cheaper imports of Epoxy Resins and Hardeners will keep the
contribution margins under pressure. Since the two main raw
materials are imported, fluctuations in foreign exchange will
impact margins.
Polymers product group mainly comprises Epoxy Resins and
Hardeners and formulations thereof, other components such
as air release agents, reactive diluents, rheological modifiers,
wetting agents, etc. and Sulphones. These products are used
by Aerospace, Automobile, Construction, Defence, Electronics,
Footwear, Handicraft, Marine, Paint & Coatings, Paper and
Wind Energy industries. The group comprises of about 80
products and 220 formulations.
During the year, sales of the product group increased from
`
268 crores to
`
438 crores. Brand sales which is currently only
in India increased from
`
18 crores to
`
53 crores and accounted
for 12% of the total. Export sales increased from
`
75 crores to
`
128 crores and formed 29% of the total. The Company
acquired and integrated Polygrip brand and took up distribution
of WD-40, a product that has good synergy with its current
portfolio. It expanded capacities in selected products.
World market for Epoxy Resins and Hardeners is estimated at
US$ 20 bn and is growing at about 2% and Indian market is