Atul Ltd 2009-10

26 / Atul Ltd | Annual Report 2009-10 Management Discussion and Analysis Colors Products Textile dyes, Pigments, Paper dyes and others 2009-10 2008-09 % change Revenues (Rs Crores) 292 265 10 Share in total revenues (%) 24 22 2 Colors segment The Division mainly manufactures dyestuffs and auxiliary chemicals for Textile industry; it also manufactures high performance pigments mainly for Paint and Coatings industry and dyestuffs for Paper industry. In value, domestic sales grew by 18% whereas export sales grew by 3% and which accounted for 42%of its revenues. It has consistently brought down its loss over the last three years. It improved its sales network to serve the end customers directly. The world market for dyestuffs and auxiliary chemicals for textiles is estimated to be USD11 bn and is growing at an average of about 2%. The demand of these products continues to move to Asia and South America with the shift in manufacturing of textile to countries such as India, China, Brazil, Bangladesh, etc. The global market for high performance pigments is estimated to be USD300 mn and is growing at an average of about 4%. Even as the rate of growth for the industry may not be significant, the shift in manufacturing of dyestuffs from Europe to Asia will help the Division to grow faster in its existing as well as new products. Stiff competition from China may continue though the fiscal changes in China may help reduce the intensity of competition. Investment and expense of the Division for environment protection will further increase in the years ahead. The Division will maintain and achieve leadership in its chosen products and will grow by de-bottlenecking, moving up the value chain by selling more of finished dyestuffs and expansions on the one hand and introducing new dyestuffs to its range even for applications beyond textiles. Even though the Division has not done well in the recent years, it is hopeful to continue the improvement trend given such initiatives. 27