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Atul Ltd |
Annual Report 2009-10
Products
Sulphones, API inters, APIs and others
2009-10
2008-09
% change
Revenues (Rs Crores)
69
74
-7
Share in total revenues (%)
6
6
-
The Division manufactures products mainly for Aerospace
and Pharmaceutical industries. It manufactures products
used for composites (Aerospace industry) and intermediates
used for anti-depressants (Pharmaceutical industry).
Domestic sales grew at 54% mainly on account of higher
off-take of products going into Pharmaceutical industry and
exports declined by 19% mainly because of low off-take of
products going into Aerospace industry.
Aerospace industry suffered heavily due to economic
downturn, and there was a delay in the introduction of
certain models of airplanes. With higher consumption of
medicines, the demand of both APIs and their intermediates
is expected to remain strong, and Pharmaceutical industry
is likely to maintain high growth. The world market for
pharmaceuticals is about USD725 bn and that of India is
about USD20 bn; these figures are not comparable.
Even as Aerospace industry went through a down-turn in the
recent past, the long-term future is bright, and the products
manufactured by the Division are expected to have strong
demand. Phosgene intermediates and other APIs and their
intermediates selected by the Division have good demand
potential. China continues to be a stiff competitor in some
products. Unexpected fluctuations in foreign exchange will
impact the realizations.
The Division will de-bottleneck capacities of many
of its products, and it will do so with relatively small
investments. This will significantly improve both its sales
and profit in the years ahead. It will add new products
particularly for Pharmaceutical industry and establish close
cooperation with leading companies for manufacturing
APIs and key intermediates. The Division is also exploring
inorganic growth, and it is expecting to grow well in the
foreseeable future.
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Pharmaceuticals and Intermediates