Atul Ltd 2013-14

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%.