48 Atul Ltd | Annual Report 2021-22 The products falling under these product groups are used by customers belonging to the Aerospace, Automobile, Composites, Construction, Defence, Electrical and Electronics, Footwear, Paint and Coatings, Paper, Sport and Leisure, andWind Energy industries. The product groups comprise 82 synthetic products and 500 formulations. B11, P62 and P101 are some of the key products. Synthetic and formulated products are versatile and have significant applications in Aerospace, Automobile, FRP Composites, Wind Energy, Electrical and Electronics, Paint and Coatings, Construction, Defence, Sports and Leisure and Paper industries. During 2021-22, sales increased by 76% from ` 878 cr to ` 1,546 cr. Sales in India increased by 59% from ` 596 cr to ` 945 cr; bulk sales in India increased by 63% from ` 460 cr to ` 751 cr, whereas retail sales increased by 43% from ` 136 cr to ` 194 cr. Sales outside India increased by 113% from ` 282 cr to ` 601 cr and formed 39% of the total. Growth on account of volume was 29%. POLYMERS Product groups: Epoxy resins, Curing agents, Reactive diluents, Sulfones, Protective paints and Adhesives based on Epoxy, Synthetic rubber, Polyurethane, Cyanoacrylate, PVC and PVA The world market for epoxy resins and curing agents is estimated at US$ 12 bn and is growing at about 3%, while the Indian market is estimated at US$ 380 mn and is growing at about 6%. There are seven major companies that dominate the world marketplace. The world market for sulfones (curing agents) is estimated at US$ 393 mn and is growing at about 6%. The user industries, Construction, Defence, Electrical and Electronics, Paint and Coatings are growing well, particularly in India. The Company will participate in this growth by – i) improvingmanufacturingandworking capital efficiencies, ii) debottlenecking and adding capacities, iii) introducing new products and iv) widening market reach in new geographies. Cheaper imports and new entrants in the market will keep the market competitive and may keep margins under pressure. Since the two main raw materials, namely Bisphenol-A and Epichlorohydrin, are imported, fluctuations in foreign exchange may impact margins and denim segment contributed to the growth in sales of Vat and Sulphur Black products and demand for exterior paints in Europe and Asia contributed to the growth in sales of high performance pigments. Rudolf Atul Chemicals Ltd (RACL), a joint venturecompany formed in 2011-12, provides a complete range of textile chemicals in Indian market; its sales increased by 36% from ` 89 cr to ` 121 cr, primarily because of volume. The size of the world Textile Dyestuff industry is estimated at US$ 6.2 bn and is expected to grow at about 3% in the coming years. China continues to be the largest manufacturer of dyes followed by India. The world market for high performance pigments is estimated at US$ 5.4 bn (constitutes both organic and inorganic pigments) and is expected to grow at about 4% in the coming years. The main user industries, namely, Textile, Paper, Paint and Coatings will continue to grow because of increasing demands from all markets recovering from two years of pandemic. The Company along with RACL will participate in this growth by - i) increasing manufacturing and working capital efficiencies, ii) introducing new dyes, pigments, textile chemicals and products for non-textile applications, iii) broadening market reach in new geographies and iv) investing in newer capacities of existing and new products. Fluctuations in foreign exchange, price and availability of raw materials may impact sales realisations. Treatment costs are expected to remain high because of stricter regulatory norms and increasing demand for sustainable products from user industries
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