42 Atul Ltd | Annual Report 2022-23 Atul Ltd | Annual Report 2022-23 Atul Ltd Atul House G I Patel Marg Ahmedabad 380 014, Gujarat India Atul Ltd | Annual Report 2022-23 Reconnect | Reimagine | Regrow Corporate Overview Statutory Reports Financial Statements The product groups comprise 450 products. The products are used by customers belonging to the Textile, Paint and Coatings and Paper industries. Vat Green 1, Sulphur Black 1 and Pigment Red 168 are some of the key products. During 2022-23, sales decreased by 22% from ` 802 cr to ` 624 cr. Sales in India decreased by 18% from ` 401 cr to ` 330 cr. Sales outside India decreased by 27% from ` 401 cr to ` 294 cr and formed 47% of the total. The decrease in sales on account of volume was 26%. Fluctuation in cotton prices affected the competitiveness of textile producers engaged in exports. Colors Product groups: dyestuffs, pigments, dye-intermediates, textile chemicals, others The products falling under the bulk chemicals product groups are mainly used for internal consumption, while the products in the intermediate product groups are used by customers belonging to the Cosmetic, Dyestuff, Pharmaceutical and Tyre industries. The product groups comprise 23 products. Resorcinol, Resorcinol– formaldehyde resin and 1,3– Cyclohexanedione are some of the key products. During 2022-23, sales remained stagnant - ` 312 cr in 2021-22 and ` 315 cr in 2022-23. Sales in India increased from ` 183 cr to ` 188 cr while sales outside India decreased from ` 129 cr to ` 127 cr. Sales outside India formed 40% of the total. Growth on account of volume was 2%. The world market for Resorcinol (a key product ) is estimated at US$ 578 mn Bulk Chemicals and Intermediates Product groups: bulk chemicals, adhesion promoters, others and is growing at about 2.5%. The size of the world Tyre industry is estimated at US$ 267 bn and is growing at about 8%. The size of the world Chlor-alkali industry is estimated at US$ 69 bn and is growing at about 4%. The Tyre industry is projected to grow supported by the resurgence in Asia Pacific. The captive consumption of bulk chemicals is expected to grow as the Company expands the manufacturing capacities of various products. The Company will participate in this growth by - i) increasing its manufacturing efficiencies, ii) debottlenecking and adding capacities, iii) introducing downstream products and iv) widening its market reach. The demand and price of bulk chemicals are cyclical in nature. Fluctuations in foreign exchange may impact sales realisations. High inflation in textile importing countries and higher inventory levels across the textile value chain further impacted the demand of textile dyes and chemicals. This in turn affected the selling prices and margins of dyes and chemicals. Denim producers were particularly affected leading to much lower capacity utilisation, which affected the sales of Sulphur black. Lower demand for exterior paints in Europe and other markets contributed
RkJQdWJsaXNoZXIy MjA2MDI2