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Atul Ltd | Annual Report 2013-14
Polymers
Products
Epoxy Resins and Hardners, Reactive diluents, Sulphones, Others
Polymers Business 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 Automobile,
Construction, Defence, Electrical and Electronics, Footwear,
Handicraft, Marine, Paint and Coatings, Paper and Wind Energy
industries. The Business comprises about 64 products and 275
formulations.
During 2013-14, sales increased by 35% from
`
468 cr to
`
633 cr. Sales in India increased by 33% from
`
312 cr to
`
415 cr. Brand sales which is currently only in India increased
by 18% from
`
72 cr from to
`
85 cr . Sales outside of India
increased by 40% from
`
156 cr to
`
218 cr and formed 34%
of the total. Increase on account of volume was 24%. Sales
from new products were
`
12 cr. The Company completed 4
projects and undertook 5 projects for implementation. Though
already incorporated, Atul Elkay Polymers Ltd, a JV company,
is still assessing the demand potential for stone care chemicals
in India.
World market for Epoxy Resins and Hardeners is estimated at
US$ 6.2 bn and is growing at about 2% and Indian market
is estimated at US$ 225 mn and is growing at about 5%.
There are about 7 major companies which dominate the
world marketplace. 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 4%.
The user industries, Construction, Defence, Electrical and
Electronics and Paint and Coatings, are growing well,
particularly in India. The Company will participate in this
growth by i) widening its market reach, ii) increasing
its manufacturing and working capital efficiencies,
iii) generating and adding new capacities of Epoxy Resins
and Hardeners and iv) introducing new products and
formulations.
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 may impact margins.