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Atul Ltd | Annual Report 2011-12
Polymers
Products
Epoxy Resins and Hardeners, Reactive diluents, Sulphones, Others
Polymers Business mainly comprises Epoxy Resins and Hardeners
and formulations thereof, other components such as air release
agents, reactive diluents, rheological modifiers, wetting agents,
etc and Sulphones. These products are used by Aerospace,
Automobile, Construction, Defence, Electronics, Footwear,
Handicraft, Marine, Paint & Coatings, Paper and Wind Energy
industries. The group comprises of about 90 products and 240
formulations.
During the year, sales increased by 11% to
`
487 cr. Sales in India
increased by 11% to
`
345 cr. Brand sales which is currently
only in India increased by 43% to
`
76 cr. Export sales increased
by 11% to
`
142 cr and formed 29% of the total. Growth on
account of volume was 5%. The Company signed a joint venture
Agreement with Elkay Kimyasal Maddeler San. Ve Tic. A.S., a
reputed manufacturer of stone care chemicals; these will have
an excellent fitment with the product portfolio of the Company.
Two debottlenecking projects already under implementation
will be completed during 2012-13.
World market for Epoxy Resins and Hardeners is estimated at
US$ 6 bn and is growing at about 2% and Indian market
is estimated at US$ 210 mn and is growing at about 10%.
There are about 7 major companies which dominate the world
marketplace. The two key raw materials, namely Bisphenol-A
and Epichlorohydrin, are imported into India. World market
for Sulphones is estimated at US$ 300 mn and is growing at
about 4%.
The user industries, Automobile, Construction and Paint &
Coatings, are growing well, particularly in India. The Company
will participate in this growth by i) significantly debottlenecking
capacities of Epoxy Resins and Hardeners, ii) introducing new
products and formulations, iii) improving efficiencies and
iv) widening its market reach.
Cheaper imports of Epoxy Resins and Hardeners will keep the
contribution margins under pressure. Since the two main raw
materials are imported, fluctuations in foreign exchange will
impact margins.