Atul Ltd 2009-10
30 / Atul Ltd | Annual Report 2009-10 Products Sulphones, API inters, APIs and others 2009-10 2008-09 % change Revenues (Rs Crores) 69 74 -7 Share in total revenues (%) 6 6 - The Division manufactures products mainly for Aerospace and Pharmaceutical industries. It manufactures products used for composites (Aerospace industry) and intermediates used for anti-depressants (Pharmaceutical industry). Domestic sales grew at 54% mainly on account of higher off-take of products going into Pharmaceutical industry and exports declined by 19% mainly because of low off-take of products going into Aerospace industry. Aerospace industry suffered heavily due to economic downturn, and there was a delay in the introduction of certain models of airplanes. With higher consumption of medicines, the demand of both APIs and their intermediates is expected to remain strong, and Pharmaceutical industry is likely to maintain high growth. The world market for pharmaceuticals is about USD725 bn and that of India is about USD20 bn; these figures are not comparable. Even as Aerospace industry went through a down-turn in the recent past, the long-term future is bright, and the products manufactured by the Division are expected to have strong demand. Phosgene intermediates and other APIs and their intermediates selected by the Division have good demand potential. China continues to be a stiff competitor in some products. Unexpected fluctuations in foreign exchange will impact the realizations. The Division will de-bottleneck capacities of many of its products, and it will do so with relatively small investments. This will significantly improve both its sales and profit in the years ahead. It will add new products particularly for Pharmaceutical industry and establish close cooperation with leading companies for manufacturing APIs and key intermediates. The Division is also exploring inorganic growth, and it is expecting to grow well in the foreseeable future. 31 Pharmaceuticals and Intermediates
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