Atul Ltd 2010-11

Atul Ltd | Annual Report 2010-11 Bulk Chemicals & Inters Products Sodium Hydroxide, Chlorine, Sulphuric Acid, Oleum, Sulphur Trioxide, Chlorosulphonic Acid, Resorcinol, Others Bulk Chemicals & Inters product group mainly comprises Sodium Hydroxide, Chlorine, Sulphuric Acid, Oleum, Sulphur Trioxide, Chlorosulphonic Acid and Resorcinol. Barring Chlorosulphonic Acid and Resorcinol, the rest of the products are used for captive consumption. The group comprises 15 products. During the year, sales of the product group remained unchanged at ` 65 crores. Export sales formed 29% of the total. World market for bulk chemicals is growing at about 2% and Indian market is growing at about 4%. World market for Resorcinol is estimated at US$ 275 mn and is growing at about 2%; Indian market for the product is estimated at US$ 14 mn and is growing at about 5%. The captive consumption of bulk chemicals is expected to grow as the Company expands manufacturing capacities of its various product groups. Tyre industry is expected to grow further because of increasing population on the one hand and improving standard of living on the other. It will participate in this growth by i) increasing and modernizing capacities of the bulk chemicals, ii) increasing capacity and efficiency of Resorcinol and iii) introducing new and down stream products. The demand and prices of bulk chemicals are cyclical in nature. Fluctuations in foreign exchange will impact sales realizations.