Atul Ltd 2014-15

Atul Ltd | Annual Report 2014-15 Bulk Chemicals and Intermediates Product Groups: Bulk chemicals, Adhesion promoters, Others The products falling under these product groups are used mainly for internal consumption and by customers belonging to Cosmetics, Dyestuffs and Tyre industry. The product groups comprise about 26 products. Resorcinol, Resorcinol Formaldehyde Resins and Sulphur Trioxide are some of the key products. During 2014-15, (external) sales increased by 1% from ` 99 cr to ` 100 cr. Sales in India decreased by 33% from ` 82 cr to ` 55 cr. Sales outside India increased by 165% from ` 17 cr to ` 45 cr and formed 45% of the total. Volumes remained stable. The Company completed 1 project and undertook 1 project for implementation. The size of world Chlor-alkali industry is estimated at US$ 46 b and is growing at about 2%. World market for Resorcinol (a key product) is estimated at US$ 310 m and is growing at about 3%. The size of world Tyre industry is estimated at US$ 220 b and is growing at about 6.5%. 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) widening its market reach, ii) increasing its manufacturing efficiencies, iii) generating and adding capacities and iv) introducing downstream products. The demand and prices of bulk chemicals are cyclical in nature. Fluctuations in foreign exchange may impact sales realisations.