The alliances are a fall-out of the amicable termination of Atul's earlier distribution deal with German multinational BASF, effective April 1998. The original agreement allowed BASF to exclusively distribute VAT dyes manufactured by Atul all over the world except in the Indian and US markets.

BASF, it is understood, will, however, continue buying VAT dyes from Atul.

Sources said that the new alliances would significantly enhance the domestic company's brand image given that both overseas partners are renowned for technical expertise backed by wide distribution networks.

While Ralken will manufacture VAT dyes liquid to Atul's specifications and distribute them in the UK, Belgium-based Summit Textile Chemicals will handle distribution in select Europeannations.

Sources, however, add that the key feature of these alliances is the marketing of VAT dyes in Atul's own brand name Novatic. This, in turn, is expected to significantly improve sales of such dyes manufactured at the company's facilities in Atul, a self-contained township.

The process know-how to manufacture these products had been provided by Zeneca to the erstwhile Atic Industries, now merged with Atul. Atic was merged with Atul in 1996, following Zeneca's disvestment in the company.

The new arrangement, analysts add, is also likely to result in higher capacity utilisation of the company's dyes facilities in Gujarat, while boosting vat dyes exports. For the year ended March 31, 1997, the company's dyestuffs division registered sales of Rs 226 crore with exports of vat dyes recording a robust 18 per cent jump.

Meanwhile, Atul also plans to launch its own brands like Tulacid (acid dyes), Tuladir (direct dyes), Tulasol (sulphur dyes), Tulasteron (disperse dyes), Tulabase (azoic diazocomponents) and Tulathol (azoic coupling components) in key overseas markets.

The company's thrust in the foreign markets is also expected to see Atul's overseas subsidiaries, Atul Americas Inc, US and Atul Europe, UK and Atul, China playing more significant roles in future. These subsidiaries are expected to market Atul's branded products.