Atul-2015-16

The main user industries, namely,

Paint and Coatings and Textile,

will continue to grow because

of increase in discretionary

spending. The Company along

with RACL will participate in

this growth by i) broadening its

market reach in new geographies,

ii) increasing its manufacturing

and working capital efficiencies

and iii) introducing new dyes,

pigments and products for non-

textile applications.

Fluctuations in foreign exchange and availability of raw materials may impact sales realisations. Treatment costs are expected to

remain high given that the manufacture of dyes and pigments generates significant pollutants.

Polymers

Product groups: Epoxy Resins and Hardeners, Reactive Diluents, Sulphones, Rubber and Polyurethane based

Adhesives, Others

The products falling under these product groups are used by

customers belonging to Aerospace, Automobile, Composites,

Construction, Defence, Electrical and Electronics, Footwear,

Paint and Coatings, Paper, Sports and Leisure and Wind

Energy industries. The product groups comprise about

82 synthetic products and 290 formulations. B11, P62 and

P101 are some of the key products.

During 2015-16, sales increased by 1% from

697 cr to

704 cr. Sales in India decreased by 2% from

458 cr to

449 cr. Brand sales decreased by 7% from

95 cr to

88 cr.

Sales outside India increased by 7% from

239 cr to

255 cr and formed 36% of the total. Growth on account of volume was

6%. Sales from new products were

39 cr. The Company completed 3 projects and undertook 2 projects for implementation.

World market for Epoxy Resins and Hardeners is estimated at US$ 6.3 bn and is growing at about 2% and Indian market

is estimated at US$ 250 mn and is growing at about 6%. There are about 7 major companies which dominate the

world marketplace. World market for Sulphones

(a hardener) is estimated at US$ 320 mn and is growing at

about 4%.

The user industries, Construction, Defence, Electrical and

Electronics, Paint and Coatings and Wind Energy are growing

well, particularly in India. The Company will participate in

this growth by i) widening its market reach, ii) increasing its

manufacturing andworking capital efficiencies, iii) generating

and adding new capacities of Epoxy Resins and Hardeners

and iv) introducing new products and formulations.