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Atul Ltd |
Annual Report 2009-10
Management Discussion
and Analysis
Colors
Products
Textile dyes, Pigments, Paper dyes and others
2009-10
2008-09
% change
Revenues (Rs Crores)
292
265
10
Share in total revenues (%)
24
22
2
Colors segment
The Division mainly manufactures dyestuffs and auxiliary
chemicals for Textile industry; it also manufactures high
performance pigments mainly for Paint and Coatings
industry and dyestuffs for Paper industry. In value, domestic
sales grew by 18% whereas export sales grew by 3% and
which accounted for 42%of its revenues. It has consistently
brought down its loss over the last three years. It improved
its sales network to serve the end customers directly.
The world market for dyestuffs and auxiliary chemicals for
textiles is estimated to be USD11 bn and is growing at
an average of about 2%. The demand of these products
continues to move to Asia and South America with the
shift in manufacturing of textile to countries such as India,
China, Brazil, Bangladesh, etc. The global market for high
performance pigments is estimated to be USD300 mn and
is growing at an average of about 4%.
Even as the rate of growth for the industry may not be
significant, the shift in manufacturing of dyestuffs from
Europe to Asia will help the Division to grow faster in its
existing as well as new products. Stiff competition from
China may continue though the fiscal changes in China
may help reduce the intensity of competition. Investment
and expense of the Division for environment protection
will further increase in the years ahead.
The Division will maintain and achieve leadership in its
chosen products and will grow by de-bottlenecking,
moving up the value chain by selling more of finished
dyestuffs and expansions on the one hand and introducing
new dyestuffs to its range even for applications beyond
textiles. Even though the Division has not done well in the
recent years, it is hopeful to continue the improvement
trend given such initiatives.
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