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Atul Ltd | Annual Report 2017-18
Performance and Other Chemicals Segment
Particulars
2017-18
2016-17
% change
Sales (
`
cr)
2,024
1,832
10%
Share in total sales (%)
66%
69%
-3%
Performance and Other Chemicals Segment consists of 4 Sub-segments, namely, Aromatics - II, Bulk Chemicals and Intermediates,
Colors and Polymers.
Aromatics – II
Product groups: Intermediates, Perfumery, Others
The products falling under these product groups are mainly
used by customers belonging to Fragrance and Personal
Care industries. The product groups comprise about
20 products.
para
Cresol, Sodium Sulphate and Sodium
Sulphite are some of the key products.
During 2017-18, sales increased from
`
537 cr to
`
539 cr.
Sales in India increased by 22% from
`
123 cr to
`
150 cr.
Sales outside India decreased by 6% from
`
414 cr to
`
389 cr
and formed 72% of the total. Growth on account of volume
was 7%. The Company completed 1 project and undertook
1 project for implementation.
The world market for
para
Cresol (a key product) is estimated
at 64,000 mt and is growing at about 2%. Though earlier
the product used to be manufactured in the UK and
the USA, China and India
are now major suppliers of the
product. The size of the world
Fragrance industry is estimated
at US$ 12.5 bn and is growing
at about 4%. The size of the
world Personal Care industry
is estimated at US$ 400 bn of
which personal care ingredients
segment is US$ 21 bn and is
growing at about 4%.
The main user industries, namely,
Fragrance and Personal Care,
are growing well due to an
improved standard of living.
The Company will participate
in this growth by i) broadening
its market reach, ii) increasing its
manufacturing
efficiencies,
iii) generating and adding
capacities and iv) introducing new products.
Higher raw material prices which can not be passed on to customers impacted profitability. Fluctuations in foreign exchange
may impact sales realisations.