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| India Infoline Sector Reports | Wed, 18-Feb-2004 17:12:06 IST (GMT+5:30) | |
| Soda ash | ||
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DCW Ltd (DCW) DCW manufactures PVC, soda ash, caustic soda and other chemicals. Though it is not a leading player in any of its products, it has significant regional clout in its main product PVC. Branded iodized salt and wheat flour is sold through its subsidiary, which has been sold to Corn Products. DCW derives most of its revenues from PVC. The other important products are soda ash, caustic soda and synthetic rutile. It also manufactures a range of allied chemicals. Though PVC resins manufacture commenced in 1970, it has become the major revenue earner. Initial capacity of 12,000 tpa has been progressively increased by modernization and installation of balancing equipment. The 60,000 tpa plant at Sahupuram in Tamil Nadu produces PVC by the suspension polymerization method. DCW has a 96,000 tpa soda ash plant at Dhrangadhra in Gujarat, which uses the standard Solvay process. DCW manufactures light grade soda ash, which is used mainly in soaps and detergents. Out of the key raw materials ie salt, limestone and coke, DCW has captive salt works at Kuda, Gujarat and leased limestone quarries, which meet 50% of requirements of each. The remaining is sourced from local salt works and quarries respectively. Coke is locally available. Other products of this division are chemicals like ammonium bicarbonate, salt, bromine and bromides. DCW has a chlor-alkali plant at Sahupuram in Tamil Nadu, with a capacity to produce 60,000 ton of caustic soda. The plant, based on the power intensive mercury cell process, has been modernized to membrane cells. DCW depends on TNSEB for supply of power. Chlorine derivatives like synthetic rutile, trichloroethylene and liquid chlorine are manufactured from chlorine a joint product of caustic soda operations. Synthetic rutile which is used to manufacture titanium dioxide is mainly exported. DCW's losses are unlikely to decrease in the next couple of years because of increased prices of imported VCM & soft PVC prices, and glut in the domestic caustic soda market. |
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