Atul Ltd 2009-10

28 / 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) 68 81 -16 Share in total revenues (%) 6 7 -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. 29 Bulk Chemicals and Intermediates