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The product groups comprise about
587 products. The products are used by
ČƭƙƥūŞĚƑƙ ċĚŕūŠijĿŠij ƥū ¹ĚNJƥĿŕĚȡ ¡îĿŠƥ îŠē
Coatings and Paper industries. Pigment Red 168, Sulphur
Black 1 and Vat Green 1 are some of the key products.
During 2018-19, sales increased by 21% from
`
452 cr to
`
547 cr. Sales in India increased by 21% from
`
236 cr to
`
285 cr. Sales outside India increased by 21% from
`
216 cr to
`
262 cr and formed 48% of the total. The
ūŞƎîŠNj ČūŞƎŕĚƥĚē ǛDŽĚ ƎƑūŏĚČƥƙȦ ¤ƭēūŕlj ƥƭŕ ĺĚŞĿČîŕƙ
Ltd (RACL), a joint venture company formed in 2011-12,
ƎƑūDŽĿēĚƙ î ČūŞƎŕĚƥĚ ƑîŠijĚ ūlj ƥĚNJƥĿŕĚ ČĺĚŞĿČîŕƙ ĿŠ TŠēĿîŠ
market; it increased its sales by 14% from
`
73 cr to
`
83 cr,
primarily because of volume.
The size of the world Dyestuff industry is estimated at US$
6.1 bn and is growing at about 3.5%. China is the largest
manufacturer of dyes followed by India. The world market
for high performance pigments is estimated at US$ 5.2 bn
and is growing at about 4.0%.
¹ĺĚ ŞîĿŠ ƭƙĚƑ ĿŠēƭƙƥƑĿĚƙȡ ŠîŞĚŕNjȡ ¹ĚNJƥĿŕĚȡ ¡îƎĚƑȡ ¡îĿŠƥ
and Coatings, will continue to grow because of growing
population and 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
ĚljǛČĿĚŠČĿĚƙ îŠē ĿĿĿȴ ĿŠƥƑūēƭČĿŠij ŠĚDž ēNjĚƙȡ ƎĿijŞĚŠƥƙȡ ƥĚNJƥĿŕĚ
ČĺĚŞĿČîŕƙ îŠē ƎƑūēƭČƥƙ ljūƑ ŠūŠȹƥĚNJƥĿŕĚ îƎƎŕĿČîƥĿūŠƙȦ
GŕƭČƥƭîƥĿūŠƙ ĿŠ ljūƑĚĿijŠ ĚNJČĺîŠijĚ îŠē îDŽîĿŕîċĿŕĿƥNj ūlj ƑîDž
materials may impact sales realisations. Treatment costs are
ĚNJƎĚČƥĚē ƥū ƑĚŞîĿŠ ĺĿijĺ ijĿDŽĚŠ ƥĺîƥ ƥĺĚ ŞîŠƭljîČƥƭƑĚ ūlj ēNjĚƙ
îŠē ƎĿijŞĚŠƥƙ ijĚŠĚƑîƥĚƙ ƙĿijŠĿǛČîŠƥ ƎūŕŕƭƥîŠƥƙȦ
'ƭƑĿŠij ǨǦǧǮȹǧǯȡ ƙîŕĚƙ ȳĚNJƥĚƑŠîŕȴ ĿŠČƑĚîƙĚē ċNj ǪǨɼ ljƑūŞ
`
175 cr to
`
249 cr. Sales in India increased by 34% from
`
112 cr to
`
150 cr. Sales outside India increased by 57%
from
`
63 cr to
`
99 cr and formed 40% of the total. The
Company undertook two projects for implementation.
The world market for Resorcinol (a key product) is estimated
at US$ 550 mn and is growing at about 2.5%. The size of
the world Tyre industry is estimated at US$ 229 bn and is
growing at about 3.7%. The size of the world Chlor-alkali
industry is estimated at US$ 45 bn and is growing at about
3.2%.
¹ĺĚ ¹NjƑĚ ĿŠēƭƙƥƑNj Ŀƙ ĚNJƎĚČƥĚē ƥū ijƑūDž ljƭƑƥĺĚƑ ċĚČîƭƙĚ
of increasing population on the one hand and improving
standard of living on the other. The captive consumption
ūlj ċƭŕŒ ČĺĚŞĿČîŕƙ Ŀƙ ĚNJƎĚČƥĚē ƥū ijƑūDž îƙ ƥĺĚ ūŞƎîŠNj
ĚNJƎîŠēƙ ŞîŠƭljîČƥƭƑĿŠij ČîƎîČĿƥĿĚƙ ūlj Ŀƥƙ DŽîƑĿūƭƙ ƎƑūēƭČƥƙȦ
The Company will participate in this growth by i) widening
Ŀƥƙ ŞîƑŒĚƥ ƑĚîČĺȡ ĿĿȴ ĿŠČƑĚîƙĿŠij Ŀƥƙ ŞîŠƭljîČƥƭƑĿŠij ĚljǛČĿĚŠČĿĚƙȡ
iii) generating and adding capacities and iv) introducing
downstream products.
The demand and prices of bulk chemicals are cyclical in
ŠîƥƭƑĚȦ GŕƭČƥƭîƥĿūŠƙ ĿŠ ljūƑĚĿijŠ ĚNJČĺîŠijĚ ŞîNj ĿŞƎîČƥ ƙîŕĚƙ
realisations.
COLORS
Product groups: Dyestuffs, Pigments, Dye-intermediates, Textile chemicals, others
59
Management Discussion and Analysis