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Atul Ltd | Annual Report 2014-15
Polymers
Product Groups: Epoxy resins and hardeners, Reactive diluents, Sulphones, Others
The products falling under these product groups are used by customers
belonging to Aerospace, Automobile, Composites, Construction,
Defence, Electrical and Electronics, Footwear, Paint and Coatings, Paper,
Sports and Leisure and Wind Energy industries. The product groups
comprise about 75 products and 276 formulations. B11, P62 and P101
are some of the key products.
During 2014-15, sales increased by 10% from
`
633 cr to
`
697 cr. Sales
in India increased by 10% from
`
415 cr to
`
458 cr. Brand sales increased
by 12% from
`
85 cr to
`
95 cr. Sales outside India increased by 10% from
`
218 cr to
`
239 cr and formed 34% of the total. Growth on account of
volume was 10%. Sales from new products were
`
17 cr. The Company
completed 1 project and undertook 3 projects for implementation.
World market for Epoxy resins and hardeners is estimated at
US$ 6.3 b and is growing at about 2% and Indian market is
estimated at US$ 236 m and is growing at about 5%. There are
about 7 major companies which dominate the world marketplace.
World market for Sulphones (a hardener) is estimated at
US$ 312 m and is growing at about 4%.
The user industries, Construction, Defence, Electrical and Electronics,
Paint and Coatings and Wind energy are growing well, particularly
in India. The Company will participate in this growth by i) widening
its market reach, ii) increasing its manufacturing and working capital
efficiencies, iii) generating and adding new capacities of Epoxy resins
and hardeners and iv) introducing new products and formulations.
Cheaper imports of Epoxy resins and hardeners may keep the
contribution margins under pressure. Since the two main raw materials,
namely Bisphenol-A and Epichlorohydrin, are imported, fluctuations in
foreign exchange may impact margins.
.