Atul Ltd 2011-12

Atul Ltd | Annual Report 2011-12 Bulk Chemicals Products Sodium Hydroxide, Chlorine, Sulphuric Acid, Oleum, Sulphur Trioxide, Chlorosulphonic Acid, Resorcinol, Others Bulk Chemicals Business 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. Resorcinol is mainly used by customers belonging to Tyre industry. The Business comprises 22 products. During the year, (external) sales increased by 11% to ` 72 cr. Sales in India increased by 26% to ` 58 cr. Export sales decreased by 26% to ` 14 cr and formed 19% of the total. Growth on account of volume was 2%. World market for bulk chemicals is growing at about 0.5% and Indian market is growing at about 2%. World market for Resorcinol is estimated at US$ 295 mn and is growing at about 3%; Indian market for the product is estimated at US$ 13 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 products. Tyre industry is expected to grow further because of increasing population on the one hand and improving standard of living on the other. The Company will participate in this growth by i) increasing and modernising capacities of the bulk chemicals, ii) increasing efficiency and capacity of Resorcinol, iii) introducing new and downstream products and widening its market reach. The demand and prices of bulk chemicals are cyclical in nature. Fluctuations in foreign exchange will impact sales realisations.