The Indian Chlor alkali industry, estimated at USD 2.6 bn in FY12 (global market size of USD 70 bn), mainly constitutes caustic soda, soda ash, chlorine, hydrogen and hydrochloric acid. Of these, caustic soda, soda ash and chlorine form the most significant pie of the Chlor alkali industry. Caustic soda and chlorine are produced together in the ratio of 1:0.88 through electrolysis of salt. On account of their co-production, the market dynamics for caustic soda and chlorine are heavily influenced by each other. In India, soda ash is produced by synthetic process using salt as raw material. Soda ash is mainly available in two forms – light soda ash and dense soda ash. Light soda ash has a share of approximately 60% in total soda ash production, while dense soda ash has a share of 40%. Indian caustic soda capacity stood at 3.1 mn tonnes in FY13. Raw material and power & fuel costs are major cost components of the Chlor alkali industry. Industrial Salt and limestone are the two key raw materials used by the Chlor alkali industry.
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