Atul-2009-10

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Atul Ltd |

Annual Report 2009-10

Products

Caustic | Chlorine, Hydrogen, Chlorosulphonic Acid, Sulphuric Acid, Sulphur Trioxide, Oleum 65%, Oleum 25%,

Resorcinol, 1,3-Cyclohexadione and others

2009-10

2008-09

% change

Revenues (Rs Crores)

-16

Share in total revenues (%)

-1

The Division mainly manufactures bulk chemicals for captive

consumption. It also manufactures Resorcinol and 1,3-

Cyclohexadione (manufactured from Resorcinol). The bulk

chemicals are used in various industries whereas Resorcinol

is used mainly in Tyre industry. 1,3-Cyclohexadione is used

mainly by Agrochemical industry. Sales declined on account

of lower input price of Sulphur though Resorcinol grew by

23%. It incurred loss during the year because of the decline

in the prices of Caustic | Chlorine.

Local manufacturers will have a cost advantage for

manufacturing Caustic | Chlorine, Sulphuric Acid, etc.

A minimum size of 300 tpd for Caustic | Chlorine and 200

tpd for Sulphuric acid is considered good. The two biggest

plants for Resorcinol are located in Japan and the USA which

have capacities in excess of 15,000 tpa each. The biggest

plant for 1,3-Cyclohexadione is in the UK with the capacity

of about 2000 tpa.

The internal demand for bulk chemicals such as Caustic |

Chlorine, Sulphuric Acid, etc will grow with the expansions

in Aromatics, Colors, Crop Protection, Pharmaceuticals and

Intermediates and Polymers. The demand for Resorcinol is

also expected to rise as Automobile industry expands. 1,3-

Cyclohexadione has a limited use in the manufacture of a

few Agrochemicals and APIs. The prices of bulk chemicals

fluctuate significantly. China and Japan have installed

additional capacities in Resorcinol.

The Division will improve its manufacturing process, efficiency

and throughput in its selected products so as to be more

cost competitive and growth oriented on the one hand and

for further bringing down waste on the other. It is planning

to add new value added downstream products. These

initiatives will take time, but once in place, it is expected that

the Division will stop incurring loss and add strongly to the

performance of the Company.

Bulk Chemicals and Intermediates