Atul Ltd 2018-19

The product groups comprise about 587 products. The products are used by ČƭƙƥūŞĚƑƙ ċĚŕūŠijĿŠij ƥū ¹ĚǊƥĿŕĚȡ ¡îĿŠƥ îŠē Coatings and Paper industries. Pigment Red 168, Sulphur Black 1 and Vat Green 1 are some of the key products. During 2018-19, sales increased by 21% from ` 452 cr to ` 547 cr. Sales in India increased by 21% from ` 236 cr to ` 285 cr. Sales outside India increased by 21% from ` 216 cr to ` 262 cr and formed 48% of the total. The ūŞƎîŠǋ ČūŞƎŕĚƥĚē ǛǄĚ ƎƑūŏĚČƥƙȦ ¤ƭēūŕlj ƥƭŕ ĺĚŞĿČîŕƙ Ltd (RACL), a joint venture company formed in 2011-12, ƎƑūǄĿēĚƙ î ČūŞƎŕĚƥĚ ƑîŠijĚ ūlj ƥĚǊƥĿŕĚ ČĺĚŞĿČîŕƙ ĿŠ TŠēĿîŠ market; it increased its sales by 14% from ` 73 cr to ` 83 cr, primarily because of volume. The size of the world Dyestuff industry is estimated at US$ 6.1 bn and is growing at about 3.5%. China is the largest manufacturer of dyes followed by India. The world market for high performance pigments is estimated at US$ 5.2 bn and is growing at about 4.0%. ¹ĺĚ ŞîĿŠ ƭƙĚƑ ĿŠēƭƙƥƑĿĚƙȡ ŠîŞĚŕǋȡ ¹ĚǊƥĿŕĚȡ ¡îƎĚƑȡ ¡îĿŠƥ and Coatings, will continue to grow because of growing population and increase in discretionary spending. The Company along with RACL will participate in this growth by i) broadening its market reach in new geographies, ii) increasing its manufacturing and working capital ĚljǛČĿĚŠČĿĚƙ îŠē ĿĿĿȴ ĿŠƥƑūēƭČĿŠij ŠĚǅ ēǋĚƙȡ ƎĿijŞĚŠƥƙȡ ƥĚǊƥĿŕĚ ČĺĚŞĿČîŕƙ îŠē ƎƑūēƭČƥƙ ljūƑ ŠūŠȹƥĚǊƥĿŕĚ îƎƎŕĿČîƥĿūŠƙȦ GŕƭČƥƭîƥĿūŠƙ ĿŠ ljūƑĚĿijŠ ĚǊČĺîŠijĚ îŠē îǄîĿŕîċĿŕĿƥǋ ūlj Ƒîǅ materials may impact sales realisations. Treatment costs are ĚǊƎĚČƥĚē ƥū ƑĚŞîĿŠ ĺĿijĺ ijĿǄĚŠ ƥĺîƥ ƥĺĚ ŞîŠƭljîČƥƭƑĚ ūlj ēǋĚƙ îŠē ƎĿijŞĚŠƥƙ ijĚŠĚƑîƥĚƙ ƙĿijŠĿǛČîŠƥ ƎūŕŕƭƥîŠƥƙȦ 'ƭƑĿŠij ǨǦǧǮȹǧǯȡ ƙîŕĚƙ ȳĚǊƥĚƑŠîŕȴ ĿŠČƑĚîƙĚē ċǋ ǪǨɼ ljƑūŞ ` 175 cr to ` 249 cr. Sales in India increased by 34% from ` 112 cr to ` 150 cr. Sales outside India increased by 57% from ` 63 cr to ` 99 cr and formed 40% of the total. The Company undertook two projects for implementation. The world market for Resorcinol (a key product ) is estimated at US$ 550 mn and is growing at about 2.5%. The size of the world Tyre industry is estimated at US$ 229 bn and is growing at about 3.7%. The size of the world Chlor-alkali industry is estimated at US$ 45 bn and is growing at about 3.2%. ¹ĺĚ ¹ǋƑĚ ĿŠēƭƙƥƑǋ Ŀƙ ĚǊƎĚČƥĚē ƥū ijƑūǅ ljƭƑƥĺĚƑ ċĚČîƭƙĚ of increasing population on the one hand and improving standard of living on the other. The captive consumption ūlj ċƭŕŒ ČĺĚŞĿČîŕƙ Ŀƙ ĚǊƎĚČƥĚē ƥū ijƑūǅ îƙ ƥĺĚ ūŞƎîŠǋ ĚǊƎîŠēƙ ŞîŠƭljîČƥƭƑĿŠij ČîƎîČĿƥĿĚƙ ūlj Ŀƥƙ ǄîƑĿūƭƙ ƎƑūēƭČƥƙȦ The Company will participate in this growth by i) widening Ŀƥƙ ŞîƑŒĚƥ ƑĚîČĺȡ ĿĿȴ ĿŠČƑĚîƙĿŠij Ŀƥƙ ŞîŠƭljîČƥƭƑĿŠij ĚljǛČĿĚŠČĿĚƙȡ iii) generating and adding capacities and iv) introducing downstream products. The demand and prices of bulk chemicals are cyclical in ŠîƥƭƑĚȦ GŕƭČƥƭîƥĿūŠƙ ĿŠ ljūƑĚĿijŠ ĚǊČĺîŠijĚ Şîǋ ĿŞƎîČƥ ƙîŕĚƙ realisations. COLORS Product groups: Dyestuffs, Pigments, Dye-intermediates, Textile chemicals, others 59 Management Discussion and Analysis