This might be the management’s strategy.
Valiant’s RM is Phenols and products are Chloro Phenols (mono,di).
Amarjyot’s RM is 3,4 DCNB and PNCB (Chloro nitro benzenes) and products are para nitro anilines.
Phenols are produced using Chloro Benzene and Sodium Hydroxide. Chloro Benzene itself can be produced from Benzene and Chlorine.
Benzene + Chlorine -> Chloro Benzene
Chloro Benzene + Sodium Hydroxide -> Phenol + Salt
Now Benzene is cheaper than Phenol by about 50% and Benzene is an elementary hydrocarbon present in crude and is relatively easily available. Our own Reliance Industries which has its own petchem business produces Benzene in 3 Indian plants.
Now coming to Amarjyot, let’s see how nitro anilines are produced
Para nitro aniline is produced via the amination of 3,4 DCNB.
3,4 DCNB + Amine -> 4-Nitroaniline + NH4Cl
3,4 DCNB is currently procured as RM by Amarjyot. It can be produced from Chloro Benzene
Chloro Benzene + Nitric Acid -> 3,4 DCNB + Water
Chloro Benzene itself can be produced from Benzene and Chlorine as we saw above. Chloro Benzene is an intermediate in the manufacture of both Phenol (Valiant’s RM) and 3,4 DCNB (Amarjyot’s RM) and Benzene is the base RM for both that comes from Crude.
Now the company may have plans to procure benzene domestically and produce both RMs in-house to cut costs. This is just an educated guess when they are talking of synergies going by my basic understanding of Organic Chemistry. Of course equations are easy on paper but industrial production could be a completely different thing as there are lot of toxic chemicals involved in the process - Chlorine, Hydro Chloric acid, Nitric acid and intermediate wastes and probably clearances for the same but if there is any synergy in terms of integration, then this could be it.