Atul Ltd 2011-12

31 Segment: Performance & Other Chemicals 2011-12 2010-11 % change Sales ( ` cr ) 1157 1016 14 Share in total sales (%) 66 67 (1) Aromatics Products p-Cresol, Others Aromatics Business mainly comprises p -Cresol and its downstream products. The products are mainly used by customers belonging to Flavour & Fragrance and Personal Care industries. The Business comprises 29 products. During the year, sales increased by 34% to ` 252 cr. Sales in India increased by 38% to ` 80 cr. Export sales increased by 32% to ` 172 cr and formed 68% of the total. Growth on accounted of volume was 14%. The Company undertook capacity expansion of p -Cresol. World market of p -Cresol is estimated at 55,000 mt and is growing at about 3%. Though earlier the product used to be manufactured in the UK and the USA, China and India are now the major suppliers of the product. The main user industries, namely, Flavour & Fragrance and Personal Care, are growing well because of the increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) expanding capacities, ii) introducing new products, iii) improving efficiencies and iv) widening its market reach. The prices of key raw materials which are derived from crude oil fluctuate almost monthly whereas the customers in the user industries expect the prices of the finished products to remain firm for a quarter or even more; on such occasions, it is possible to get affected adversely. Fluctuations in foreign exchange will impact sales realisations.