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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.