Atul Ltd 2013-14

31 Colors Products Textile dyes, Textile chemicals, Pigments, Paper dyes, Inks, Others Colors Business mainly comprises dyes for natural fibres such as Vat, Sulphur Black and Reactive and in a small way high performance pigments. The products are used by customers belonging to Textile and Paint and Coatings industries. The Business comprises about 550 products. Rudolf Atul Chemicals Ltd, a JV company formed in 2011-12, provides a complete range of textile chemicals in Indian market. During 2013-14, sales increased by 29% from ` 330 cr to ` 426 cr. Sales in India increased by 24% from ` 187 cr to ` 231 cr. Sales outside of India increased by 36% from ` 143 cr to ` 195 cr and formed 46% of the total. Increase on account of volume was 6%. Sales from new products were ` 30 cr. The Company completed 5 projects and undertook 4 projects for implementation. It sold off its shareholding in M. Dohmen S.A., a JV company; the transaction was however completed on April 03, 2014. Rudolf Atul Chemicals increased sales by 51% from ` 21 cr to ` 31 cr, mainly because of volume growth. World market for dyes and textile chemicals is estimated at US$ 12 bn and is growing at about 2% and Indian market is estimated at US$ 800 mn and is growing at about 3%. China is the largest manufacturer of dyes followed by India. World market for high performance pigments is estimated at US$ 3.5 bn and is growing at about 4%. The main user industry, namely, Textile, is showing signs of recovery in India and abroad. Automobile industry is growing well. The Company along with Rudolf Atul Chemicals will participate in this growth by i) broadening its market reach, ii) increasing its manufacturing and working capital efficiencies and iii) introducing new dyes, pigments and textile chemicals. Fluctuations in foreign exchange may impact sales realisations. Treatment costs are expected to remain high given that the manufacture of dyes generates significant pollutants.