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Atul

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Submitted By riddhish
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INDEX

Sr. No. | Chapter | Page No. | 1 | Executive Summary | 7 | 2 | Industry Profile | 8 | 3 | Company Profile | 9 | 4 | Aims & Objective | 11 | 5 | Methodology | 11 | 6 | Findings And Analysis | 12 | 7 | Conclusion & Suggestions | 15 | 8 | Appendix | 17 | 9 | Bibliography | 19 |

EXECUTIVE SUMMARY
This project has been carried out as a part of the curriculum of the Second Year Bachelor of Business Administration of St. Xaviers College Mapusa, Goa. The project research has been completed in Atul Ltd. At Atul, Gujarat from 14th May 2013 to 27th June 2013.
Project was mainly based on Comparison between Dyestuff industries present Scenario and future scope in India and China and in India at Atul ltd forecasting the scope for the growth of the company.
I have come up analysis that compares industries in India and China and the way Atul ltd is operating and have also given suggestions for the same.

INDUSTRY PROFILE
Dyestuff Industry is one of the core industries that is integral part of textiles in India . It is also the second highest export segment in chemical industry. The industry is made up of about 1,000 small scale units and 50 large organized units, who produce around 1,30,000 tonnes of Dyestuff. Maharashtra and Gujarat account for 90% of dyestuff production in India due to the availability of raw materials and dominance of textile in these regions. The major users of dyes in India are textiles, paper, plastics, printing ink and foodstuffs. The textiles sector consumes around 80% of the total production due to high demand for polyester and cotton, globally. At present, India contributes about 6% of the share in the global market with a CAGR of more than 15% in the last decade. The organized players contribute about 65% of the total dyestuff production in the country. The dyestuff industry has recently seen movement towards consolidation and as a result, organized players are now poised to take a lead in the global market. Small units (around 1000) that exist today still compete in the segments where price realization is lower and the competition severe. Large and organized players (around 50) are gearing up for global competitiveness leveraging technology, product innovation and brand building. Increased focus is being laid on environmental friendliness and at the same time the industry is ensuring greater customer focus through technical services and marketing capabilities, in order to face global competition.
Major players
Atul, Sudarshan Chemicals, Kiri Industries
Outlook
Presently India, China, Korea, Taiwan and Indonesia are the main Producer for the Dyestuffs and Pigments. Manufacturers in Europe & USA have almost shifted the production base to these Asian Countries. Main reason for this is the low cost of production and ample manpower within Asian Country.

COMPANY PROFILE
About Lalbhai Group:
Lalbhai group of industries was set up with the pioneering effort of the Lalbhai brothers in 1931, Arvind mills being the 1st company. With the best of technology and business acumen, Arvind has become a true Indian multinational, having chosen to invest strategically, where demand has been high and quality required has been superlative. Today, The Arvind Mills Limited is the flagship company of Rs.20 billion (US$ 500 million) Lalbhai Group.
Lalbhai group of companies today includes: * Textiles * Arvind Mills Ltd * Arvind intex Ltd * Arvind polycot Ltd * Arvind Clothing Ltd * Arvind Cotspin Ltd * Arvind Fashion Ltd * Arvind Growel Ltd * Arvind overseas Ltd * Arvind products * Chemicals * Atul Ltd * Amal Products Ltd * Anil starch products Ltd * Amol Dicalite Ltd * Engineering * Anup Engineering Ltd * Finance * Anagram Securities Ltd * White Goods * Amtrex Appliances Ltd * Real Estate * Lalbhai Realty Ltd * Building & Furniture Materials * Gujarat Synthwood Ltd
About Atul
Atul Ltd is a member of Lalbhai group, one of the oldest business houses of India, with interests mainly in textiles and chemicals. The group is strongly committed to serve the society in the field of education, health as well as culture.
Atul Ltd operates through six-business division, namely, Agrochemical bulk chemicals & Intermediates, Colors, Pharmaceuticals, Intermediates, and Polymers. Each business, in step with the company vision, develops and implements its growth plans. Atul’s registered office is in Ahmedabad whereas its corporate headquarters are located in Atul Gujarat. Company is listed on the NSE in India and has over 35000 shareholders. Atul also has office in the USA, the UK, Germany, and Vietnam that service its international customers.
About Color Division
The color division is the largest division of ATUL LTD, manufacturing wide range of dyestuff for textile, leather, paper, wool and silk industries. The division is the largest supplier of dyestuff in India and exports nearly 60% of its production to more than 40 countries worldwide. The division’s manufacturing operations started with sulphurdyes in 1952 in quick succession other classes of dyes like direct, acid, azoic, and azo disperse were added to the product range.
Vat, reactive and anthraquinone disperse dyes were manufactured by the Atic industries Ltd in 50-50 joint venture between Atul Ltd and Zeneca Plc.
In 1995, when Zeneca decide to divert its textile color business worldwide Atul Ltd brought over Zeneca’s stake in Atik industries. Consequently the same year two companies were merged. With state of the art manufacturing facilities, stringent quality control system and an efficient pool of skill-sets and providing optimum solution to its customers. The division is an ETAD member and is ISO9001 certified.
(See figure no. 1 for Organisational Structure)

AIMS AND OBJECTIVES * Comparative study of Dyestuff industries in China and India. * To study the scope of Dyestuff industries in India and for the growth of Atul Ltd.

METHODOLGY
The best suited method for this study was to understand the Dyestuff industries scenario in China and India. In Atul by personal interaction with the business planner with a set of questions and compare it.
Sources of Information: * Primary information: Information acquired through different means such as personal interactions, questionnaire, discussions on topic and observation. * Secondary information: Internet Sites

FINDING AND ANALYSIS * Scenario of Dyestuff Industries:
The global colorant industry is valued at US$ 27 Billion and has been growing at 6-7% p.a. The dyestuff industry has seen turbulent times in the past decade. The decline of the traditional producers in the developed world, particularly in Europe, and the simultaneous ascent of new ones in Asia, particularly India and China, is arguably one of the most significant changes ever seen in this industry. The shift has been quite swift and followed the migration of end-user industries – notably textiles and leather – to low cost economies of Asia.
Presently India, China, Korea, Taiwan and Indonesia are the main Producer for the Dyestuffs and Pigments. Manufacturers in Europe & USA have almost shifted the production base to these Asian Countries. Main reason for this is the low cost of production and ample manpower within Asian Country and the Environmental norms. * Chinese Dyestuff Industries:
China is the strongest market for producing & consuming dyes and pigments. The total Product Sales Revenue of china per year is USD 7.62 billion. Dyestuff Production is over 0.756 million tons where Organic Pigment Production is over 0.224 million tons. China trades Dyestuff and Pigment over 0.499 million tons which costs over USD 2.869 billion. Above data are of 2010 which has been revealed in the Dyestuff forum’s sustainable seminar held in Barcelona, ITMA 2011 recently. In the conference Mr. Tian Liming, Secretary General of China Dyestuff Industry Association presented his slides to show the status and trend of Chinese dyestuff industry.
Mr. Tian informed that main export countries and regions of Chinese dyestuff are Korea, India, Indonesia, Taiwan region, Turkey, Pakistan, USA and Hong Kong SAR, while the main export countries and regions of pigment are USA, Germany, Belgium, Japan, Korea, Holland, U.K. and Italy.
He depicted that Chinese government and enterprises paid more attention on technological progress in the past 5 years & developed more than 300 varieties of dyestuff and pigments as well as production process and equipment technology made great progress. Chinese chemical industry areas are growing up, 70% companies settled in the industrial zone producers, which output accounted for 85% of total volume.
Talking about sustainability Mr. Tian informed that through development and application of the clean production technologies, such as membrane filtration, puree dried, hydrogenation, Dye industrial wastewater has been effectively managed and controlled. Wastewater decreased 15-18 million tons and COD reduced 0.15-0.2 million tons per year.
China has become the No.1 country in terms of dyestuff production. It is very significant to make technological innovation in future. The Chinese enterprises are devoted to the dyestuff production research and cost input. China improved the construction of international brand and insists on the ways of developing quality, environmental protection, integrity and brand. Through independent innovation, the brand of proprietary intellectual property rights in the core technology is processed. Through the market service and promotion, the procession of international competitive famous-brand products is achieved. At the same time attention has been paid to end-of-pipe control, clean production, and comprehensive process technology to make these popular. In this conditions, generations of wastes decreased 10% annually.
Major Factors: * Good quality infrastructure which increases their capacity through which then can produce Dyestuff in bulk. * Technological improvements through which China can also treat the waste keeping the environment clean. * Research and development working on the improvement of quality and to produce goods efficiently.

* Indian Dyestuff Industries:
India accounts for 12% of the global colorant industry, out of which nearly 2/3rd is exported. In 2010, India produced 200,000 tonnes of dyes. Of this, 50% were reactive dyes due to the availability of important raw materials like vinyl sulphone, etc. Nearly 70% of the dyestuff was supplied to the textile industry while leather and paper industries accounted for the remaining. (See figure no. 2)
The sector is dominated by unorganized players and has 1000 players in the small scale category. There are only 50 large organized units. These units are mainly present in Gujarat and Maharashtra, with the former accounting for almost 80% of capacity. * Market size and Major Players
Per capita consumption of dyestuff is 50 gms compared to the world average of 300 gms demonstrating a largely untapped domestic market. India has largely been an exporting country and has emerged as a global supplier of reactive, acid, vat and direct dyes accounting for 10% of world trade. Also, these dyestuffs are exported to Europe, South East Asia and Taiwan to cater to the textile industries in these countries. However, almost 80% of these are commodities and face intense pricing pressures reducing the margins of the industry. The major players in the organized sector are Atul Products, Jaysynth Dyechem, Meghmani Organics, Colortex, Sudarshan Chemicals, Colour Chem, Ciba Speciality, BASF, Clariant India, IDI and Metrochem. The Indian companies account for 6% of the world dye production.
The organized sector, with a better product range, technology and marketing reach, has been able to increase market share. Further bans on certain dyestuffs due to regulatory norms from the European markets and stricter local pollution norms have forced many in the unorganized sector to exit resulting in increase in the share of the organized players.
Major Factors: * Growth of Dyestuff industries with an increase in demand globally where India being a potential producer of the product. * Increase of textile industry in the country itself which also lead to the growth of dyestuff industry in the local market. * 95% of raw materials are available locally.

* Atul Ltd Atul ltd is one of the largest producers of dyestuffs in India producing Vat Dyes, Reactive Dyes, Dispersive Dyes and Sulphuric Dyes. Atul manufactures 90% of its products at the plant and the 10% of the remaining in which intermediates are traded and then processed and packed at Atul. Atul is one of the oldest and biggest player of dyestuff in India. It works through 4 zones located North- East (Delhi, Punjab, Assam, West Bengal), West (Gujarat, Rajasthan), Central (South Gujarat, Maharashtra, Madhya Pradesh, Andhra Pradesh) and South (Tamil Nadu). Atul exports its 60% products across the globe and Supplies locally to the companies like Alok industries, Welspun, Arvind mills, Birla Century. Atul has its own quality benchmark which allows the company to be the country’s leading dyestuff supplier with 40% of the India’s total Export of Dyestuff. Growth rate at Atul has been 2-3% pa over a decade and has established will with huge infrastructure and environmental friendly working premises. The company promises to improve on the machinery and technology in the next 5 years in order to produce in an efficient manner and meet the demand of the market.

CONCLUSION
The industry in India has realised that in order to maintain in the market, an application of modern technologies is required and at the same time international marketing is to be adopted like the other global players. A significant change in the industry was noticed and as a result consolidation happened as a result some large MNCs also showed their interest in the process. However, there is a need for renewed focus on the right product profile and as a result higher investment in research too needs to be realised. The economies of scale have also become important for spreading costs of manufacturing. But there is no doubt that capability in making continuous investments in R&D will make a difference in the industry.
With the growth of textile market in the country and worldwide there is scope of better growth for the industry in both export and local market and making Indian Chemical industry one of the big players among the world’s industries.

SUGGESTIONS * Increase emphasis on R&D * This will allow cost effective operations in the plant through which Atul can: * Serve the customer order in an optimised manner. * Profitable manner * Manage working capital within set norms * Looking at the bottom of the pyramid i.e. the growing local textile market which should be tapped the most as is sustains lot of growth potential by 2020. * Improve environment friendliness of products and services. * Ensure compliance to international regulations to continue access to the exports markets.

APPENDIX 1. Organisation Chart of Colors Division: COLOR DIVISION
COLOR DIVISION

PRESIDENT

PRESIDENT

Manu-facturing (GM) gm Marketing international (GM)
Lab
R & D (scientist) (GM)
Tech. service
Marketing national (GM)
Product Management (GM)
Finance
(GM)
Manu-facturing (GM) gm Marketing international (GM)
Lab
R & D (scientist) (GM)
Tech. service
Marketing national (GM)
Product Management (GM)
Finance
(GM)

Sales Co-ordination
South RM
Central-RM
North-RM
Sales Executive
Sales Co-ordination
Sales Co-ordination
South RM
Central-RM
North-RM
Sales Executive
Sales Co-ordination

2. Distribution of capacity of dyestuff production in India

BIBLIOGRAPHY * www.google.com * www.economywatch.com/world-industries/dyestuff/ * www.atul.in * www.dmai.org/profile.htm * www.fibre2fashion.com/industry-article/29/2887/the-future-of-indian-dyes-and-dye-intermediates1.asp * www.fibre2fashion.com/industry-article/24/2308/chinese-dyestuff-industry-market-analysis2.asp * www.newclothmarketonline.com/an-overview-of-indias-dyes-pigments-industry/ * www.textiletoday.com.bd/magazine/328

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