Realisation in Chemical Industries

(pramodguru) #1


Could anyone of you try to explain me what does realization mean in chemical and process industries ?
For example "The first is the Company’s CMS Project of
40,000 MTPA which will result in captive consumption of 41,000 MTPA of Chlorine (Co-product of the Company’s Caustic Soda production), which currently has a negative realisation. So, this project will help the Company achieve better realisation in the Caustic Chlorine segment"
Request someone to help me on this .
Thanks Pramod

(hash611) #2

Realisation is essentially revenue or revenue/unit.

Negative realisation means that it (chlorine) has no sale value and that it would cost the company money to dispose off the chlorine in an environmentally safe manner.

With this plant, the company could use the by product (or co-product) of chlorine to manufacture the end product, thereby being able to consume the chlorine at no cost and also obtain sales value for the end product.