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Colors
Products
Textile dyes, Textile chemicals, Pigments, Paper dyes, Inks, Others
Colors Business mainly comprises dyes for natural fibres such
as Vat, Sulphur Black and Reactive and in a small way high
performance pigments. The products are used by customers
belonging to Textile and Paint & Coatings industries. The Business
comprises about 500 products. M. Dohmen S. A., a JV company,
manufactures dyes for synthetic fibres such as speciality
Disperse. The products made by M. Dohmen are mainly used by
customers (belonging to Textile industry) supplying automotive
textiles to Automobile industry. Rudolf Atul Chemicals Ltd, a JV
company formed during the year, will provide a complete range
of textile chemicals where the Business had made a beginning
and had a minuscule presence in Indian market
During the year, sales increased by 6% to
`
346 cr. Sales in India
increased by 2% to
`
185 cr. Export sales increased by 12% to
`
161 cr and formed 47% of the total. Degrowth on account of
volume was 5%.
World market for dyes and textile chemicals is estimated at
US$ 11 bn and is growing at about 2% and Indian market
is estimated at US$ 800 mn and is growing at about 3%.
China is the largest manufacturer of dyes followed by India.
World market for high performance pigments is estimated at
US$ 3.5 bn and is growing at about 4%.
The main user industry, namely, Textile, is heavily dependent on
the markets of the USA and Europe; due to difficult economic
situation in some of these countries, the industry has shown
considerably sluggish growth. The growth of domestic Textile
industry has been impacted by the closure of textile units in
Tirupur and the volatility in cotton prices. Automobile industry
is growing well, particularly in India. The Company is trying to
overcome downward pressure on prices by i) debottlenecking
capacities and thus reducing the cost per unit, ii) introducing
new dyes, pigments and textile chemicals, iii) improving
efficiencies and iv) widening its market reach, particularly in
selected countries in South America, Asia and Africa, with the
cooperation of M. Dohmen and Rudolf.
Fluctuations in foreign exchange will impact sales realisations.
Treatment costs are expected to remain high given that the
manufacture of dyes generates significant pollutants.