Company Overview Financial Statements Notice Statutory Reports 13 Rudolf Atul Chemicals Ltd | Annual Report 2022-23 Management Discussion and Analysis Rudolf Atul Chemicals Ltd (RACL) is intomanufacturing and marketing of specialty chemicals for the Textile industry in India. The Company offers a complete range of products for pre-treatment, dyeing and finishing processes of apparels, home furnishing and technical textiles. It has achieved CAGR of 9% in the last 5 years and aims to become one of the leading suppliers in India. The Company achieved sales of ` 110 cr, which is 8% lower than the previous year mainly due to lower demand on account of i) higher cotton prices during the first half of the year, ii) lower capacity utilisation at key customers who are engaged primarily in exports due to reduced demand from the importing countries like the United States of America and the European Union, iii) shortage in major raw materials and iv) disruption in the supply chain. Sales of Effect Chemicals (EC) segment decreased by 18% due to fluctuation in silicone prices and muted demand for repellents, whereas the process chemicals (PC) segment showed a marginal 1% reduction. Increased customer base in both segments helped maintain sales revenue despite the adverse market conditions. The Company offers customised solutions to its customers and aims to achieve its own niche in sustainable innovations. It will continue to focus on using renewable raw materials and energy-saving processes. It expects improved demand for i) specialty chemicals for synthetic textiles used in sports and athleisure applications, ii) per fluorocarbon-free repellents and iii) silicones for improved performance in home and knit segments. It has planned to establish a complete processing package for the denim segment along with sulphur black, a rapid dyeing concept in the polyester segment and new products for polyester printing. The growing demand for Continuous Bleaching Range chemicals for knit fabrics will boost its growth in PC sales. The world Textile industry has shown an average capacity utilisation rate stagnating at 74% since the beginning of the year. However, domestic demand will continue to grow at a steady pace, owing to
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