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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.