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Atul Ltd | Annual Report 2013-14
Bulk Chemicals and Intermediates
Products
Sodium Hydroxide, Chlorine, Sulphuric Acid, Sulphur Trioxide, Chlorosulphuric Acid, Resorcinol, Others
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) modernising its bulk chemicals plant, iv) adding capacities
and v) introducing new and downstream products.
The demand and prices of bulk chemicals are cyclical in
nature. Fluctuations in foreign exchange may impact sales
realisations.
Bulk Chemicals and Intermediates 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
about 26 products.
During 2013-14, (external) sales increased by 29% from
`
77 cr
to
`
99 cr. Sales in India increased by 37% from
`
60 cr to
`
82 cr.
Sales outside of India remained constant at
`
17 cr and formed
17% of the total. Growth on account of volume was 16%. Sales
from new products were
`
19 cr. The Company completed 1
project and undertook 2 projects for implementation.
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$ 300 mn and is growing at about
3%; Indian market for the product is estimated at US$ 15 mn
and is growing at about 5%.