NPCS Newsletter –0312

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Projects Covered in this Issue

Caramel Colour From Sugar

Coconut Processing Unit (Complex)

Dry Cleaning And Laundry Unit

Fastener (Automatic Cold Forge Process)

Frozen Finger Chips

Lead Acid Battery

Mango Pickles

PPR Pipes And Fittings

Precipitated Calcium Carbonate

Refined Oil (Cotton Seed Oil, Ground Nut Oil & Sunflower Oil)

Shrimp Farming (Breeding In Sea Water)

Unsaturated Polyester Resin

2-Ethyl Hexanol (Octanol)

Bleaching Powder

Carbon Fibre

Diphenyl Oxide

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Projects Covered in this Issue

Methyl Isobutyl Ketone (Mibk)

Methylamines

Sodium Tri Poly Phosphate

Super Absorbent Polymers

Vitamin C

Waste Tyre (Tire) Utilization

Abs Resin

Bismaleimide Triazine Resin (Bt Resin)

Bisphenol A

Chloroform

Chloromethane

Diethyl Sulphate

Ethyl Silicate- Product Overview

Isobutyric Acid

Speciality Chemical –Isophorone

Neopentyl Glycol

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CARAMEL COLOUR FROM SUGAR The global food colours market was worth an estimated

$1.45 billion in 2009 relays an August 2010 market report, "The Global Market for Good Colours," by Leatherhead Food Research. World usage of food colours is currently about 40,000-50,000 tons. Although current economic conditions mean "annual growth levels have started to fall off sharply," says the report, by the middle of the next decade, the global market value is expected to reach $1.6 billion, up 10% from its present levels. From 2005 to 2009, the global market for natural colours increased almost 35% in value, with much future growth expected to come from natural colours and colouring foodstuffs. Foods account for some 67% of the food colouring global market, followed by soft drinks (28%) and alcoholic beverages (5%).

The demand of Caramel colour in the market is immense and therefore its market position is splendid. Hence it is an excellent field to venture.

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COCONUT PROCESSING UNIT

(COMPLEX)

India is the third largest coconut producing country in the world .It contributes 15% of the area and 25% of the production of coconut in the world. Coir and coir products, milling copra and coconut oil are the major commercial products produced in the country. In India as much as 48% of the coconut production is used for edible and religious purposes, 10% as tender coconut, roughly 30% as milling copra for oil extraction, 8% for the manufacture of edible copra and the rest is processed into products like desiccated coconut and coconut cream. The production of coir and coir products constitutes 55% of the world output. India’s export trade accounts for 30% of the total export trade in the world.

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DRY CLEANING AND LAUNDRY

UNIT

Dry cleaning and laundry unit may come under the tiny scale industry to small scale industry unit. Now a day there is a very good export scope of garments. In garment industry there is requirement of laundry unit or dry cleaning unit. Laundry and dry cleaning unit growth is 5%, which is now, meet up by local operators. But due to the rapid population growth and rapid modernization more laundry and dry cleaning units are required to keep space with the social demand. Any entrepreneur may launch this unit will be successful. The present day sophisticated standard of living recognizes the importance of cleanliness and smart dressings. It is due to this reason that the modern human being has accepted dry cleaning as a must for a smart look. Hospitality and healthcare are governing growth in the Indian on premise laundry market. Laundry, today, is very much an industry even within the Government policies.The laundry market is growing at a good rate and more and more establishments in both commercial and institutional sectors are facing the challenge of choosing between an in-house laundry which will give more control over cost and quality or outsourcing which will allow them to focus on their core business.

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FASTENER (AUTOMATIC COLD FORGE PROCESS)

The Indian Fastener Industry is estimated to have a domestic market of around INR 1500 crore. Automobile industry is the biggest consumer of fasteners. Mild steel fasteners are primarily manufactured by the unorganized sector while the high tensile fasteners require superior technology and dominated by companies in the organized sector. The organized sector commands nearly 70 percent of the fasteners market while the rest is controlled by the unorganized sector and imports.

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FROZEN FINGER CHIPS

Frozen Food in India industry profile provides top-line qualitative

and quantitative summary information including: market share, market size (value and volume 2006-10, and forecast to 2015). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. The market for frozen food in India increased at a compound annual growth rate of 15.2% between 2004 and 2009. The Indian frozen food market generated total revenues of $325.9 million in 2010, representing a compound annual growth rate (CAGR) of 16.6% for the period spanning 2006-2010. The food processing industry has been slated for accelerated growth. It is projected to be a futuristic industry and it is anticipated that, over the years, it will emerge as a leading player in the global markets. As a result, the industry is seen to be witnessing feverish activity.

Therefore the scope for this product is very bright. An entrepreneur venturing into this project will find it very lucrative.

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LEAD ACID BATTERY

Lead acid batteries are considered to have one of the

fastest global growth rates. Usage of lead acid battery is expected to grow further with technological advancements in the electric vehicles market. Although efforts are on to develop a “miracle battery” for electric vehicles, lead acid batteries are one of the few battery technologies that are considered as the workhorses of today’s Electric Vehicle fleet. The influx of cutting edge technology has brought forth a new genre of long lasting, lead acid batteries featuring smaller size and lightweight attributes. The global market for Lead Acid Batteries (Automotive) is forecast to reach US$15.4 billion by the year 2015, charged by sustained demand from automobiles industry, specifically the aftermarket/replacement market. Emergence of next-generation electric vehicles (EVs) and hybrid electric vehicles (HEVs) will further drive the market.

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MANGO PICKLES

There is very good market demand of mango pickles.

This is manufactured by some well organized sector as well as many unorganized private tiny and small scale sector. There is scarcity of availability of green mangoes throughout the year. It is mostly available in our country in the month of April – August. Market demand almost increases by 3% per annum which is actually population growth rate. There is very good export demand in the European countries as well as in the Middle East Asian countries.

Therefore the demand of mango pickle in the market is enormous and therefore its market position is splendid. Hence it is an excellent field to venture.

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PPR PIPES AND FITTINGS

Considerable growth in the use of PPR (Random Copolymer

Polypropylene) pipe systems in new buildings has resulted in a surging demand for PPR material in expanding markets across Eastern Europe, North Africa, andAsia. According to the relevant data plastic sheet, plastic pipe and plastic-steel windows and doors are subject to market interest rate of 53% above market demand, an upward trend. In Western Europe, the advantages of PPR pipes are sometimes outweighed by the higher labour costs incurred when fitting the systems, but, in markets with a lower cost of labour, PPR’s advantages are driving a big increase in demand. As per industry estimates, global demand for plastic pipe is expected to increase 4.5% annually to 8.1 billion metres in 2012 in weight terms, consumption is projected to expand 4.6% per year to 18.1 million metric tons.

The applications and demand of PPR pipes and fittings in the market is immense and therefore its market position is splendid. Hence it is an excellent field to venture.

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PRECIPITATED CALCIUM

CARBONATE Worldwide, almost 10 million tons of precipitated calcium

carbonate (PCC) is produced annually for use in a wide range of end-use applications. Roughly 70% of the total is consumed by the paper industry for the filling and coating of paper. Large amounts of PCC are also used in the filling of polymers, as a pigment in paint, and as a thixotrope in sealant and plastisol formulations. In addition, PCC with sufficient purity can be used for food and pharmaceutical applications. Global demand for Precipitated Calcium Carbonate (PCC) is forecast to grow by an average of 4%py from around 13Mt in 2007 to nearly 16Mt by 2012. Growth rates will be highest in the paint (6%py) and rubber (4%py) industries though the largest increases in terms of tonnage will be in paper and paint.

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REFINED OIL

(COTTON SEED OIL, GROUND NUT OIL & SUNFLOWER OIL)

The demand for edible oils in India has shown a steady growth at a CAGR of 4.43% over the period from 2001 to 2011. The growth has been driven by improvement in per capita consumption, which in turn is attributable to rising income levels and living standards. In terms of volumes, palm oil, soyabean oil and mustard oil are the three largest consumed edible oils in India, with respective shares of 46%, 16% and 14% in total oil consumption in 2010.The Indian edible oil market is the world’s fourth-largest after the USA, China and Brazil. A growing population, increasing rate of consumption and increasing per capita income are accelerating the demand for edible oil in India. India is a leading player in edible oils, being the world’s largest importer and the world’s third-largest consumer. Each year, India consumes over 10 million tons of edible oils. Edible oils have a high penetration of 90% in India.

Since the applications and demand of refined oil is immense therefore the potential of the product is excellent. It is one of the imperative fields to endeavour.

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SHRIMP FARMING

(BREEDING IN SEA WATER)

The global shrimp industry has experienced phenomenal

growth over the last twenty-two years generating more than 730,000 metric tons of farm cultured product annually. This industry represents a market value exceeding US$ 3.7-4.5 billion ($5.00-$6.00/kg) ex-farm. World production of shrimp, both captured and farmed, is about 6 million tons, of which about 60% enters the world market. Shrimp is now the most important internationally traded fishery commodity in terms of value.

Therefore the scope for Shrimp farming is very bright. An entrepreneur venturing into this project will find it very lucrative.

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UNSATURATED POLYESTER

RESIN

Over the next 5 years, total unsaturated polyester resins consumption across the globe is expected to continue strong growth momentum at 6.3% CAGR. The unsaturated polyester resins market is expected to reach US $ 5.8 billion by 2015. The demand for polymers - thermosets, alloys, blends and composites - was expected to rise to nearly 9.5 million TPA by the year 2011-12. The main consumer segments of polymers - buildings and construction, plasticulture, packaging, teletronics, transportation, domestic consumer goods - will all require increasing petro-chemical inputs. The expansion will not be limited to quantum; it will be supported also by technology upgradation and higher value addition. UPR market is expected to grow in near future because of new applications and demands. As wind energy and construction market have shown highest growth in last few years it is expected that, this growth will facilitate unsaturated polyester resins industry and it will continue the same performance and generate high revenue for the UPR manufacturer. In Western Europe, annual growth of 7–8% is forecast for unsaturated polyester resin consumption in this segment during 2007–2012. Growth will be higher in Asia.

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BLEACHING POWDER

The benefit of bleaching powder is that it is a solid which makes it

easier to apply as a disinfectant, whereas other bleaching agents such as chlorine and sodium hypochlorite are gaseous and liquid respectively. The demand for bleaching powder is likely to increase in tune with the Indian economic and industrial growth pattern. Considering the case exists create capacity for bleaching power/calcium hypochlorite depending upon the regional demand supply scenario. Firm tie up arrangement for the supply of chlorine on long term basis is necessary. Capacity of bleaching powder concentrate (available chlorine more than 70%) in the world is 270000 tonnes per annum. Capacity of bleaching powder concentrate in China is 60000 tonnes per annum. The main ingredient in bleaching powder concentrate is calcium hypochlorite. Based on different production processes, bleaching powder concentrate also contains calcium chloride or sodium chloride and calcium hydroxide. The effective chlorine content is more than 60%. By contrast, the effective chlorine content in conventional bleaching powder is around 30%.

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CARBON FIBRE

The global demand on carbon fiber composites was valued at roughly US$10.8 billion in 2009, which declined 8 to 10% from the previous year. It is expected to reach US$13.2 billion by 2012 and to increase to US$18.6 billion by 2015 with an annual growth rate of 7% or more. Strongest demands come from aircraft & aerospace, wind energy as well as automotive industry. Around90 percent of all commercial carbon fibers are produced by the thermal conversion of PAN precursor fibers. Commercially available PAN fibers are used as precursors to produce carbon fibers in large tow counts, having up to 24k filaments. Indian Import is around 3 metric tons.Consumption by other manufacturing industries is growing even faster, by about 15% per year.

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2-ETHYL HEXANOL (OCTANOL)

2-Ethylhexanol is produced industrially by the aldol

condensation of n-butyraldehyde, followed by hydrogenation of the resulting hydroxyaldehyde. About 2,500,000 tons are prepared in this way annually. The n-butyraldehyde is made by hydroformylation of propylene, either in a self-contained plant or as the first step in a fully integrated facility. Most facilities make n-butanol and isobutanol in addition to 2-ethylhexanol.The demand for oxo alcohols would go up steadily in India in the coming years. Considering the growth in demand for oxo alcohols, strong case exists for capacity creation. Firm supply source for propylene for the project is important. PVC is the important user industry for phthalate plasticizers. The demand for phthalate plasticizers would largely move in tune with the performance and growth of the PVC industry. Indian demand for octanol is estimated around 60,000 tonnes per annum and estimated growth ratio of octanol is 7%.

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DIPHENYL OXIDE

Present global production level of diphenyl ether is around 65000 tonnes per annum. Diphenyl oxide, or DPO, is a key raw material in the production of a variety of industrial products such as surfactants, flame retardants, fragrances, chemical intermediates and heat transfer fluids. DPO is an essential ingredient used to manufacture Therminol VP-1 heat transfer fluid, the heat transfer fluid of choice for the solar industry. Global demand of diphenyl oxide is increasing and hence its production is likely to increase in next few years.

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METHYL ISOBUTYL KETONE (MIBK)

Considering the steady growth in demand and the applications in thrust areas of growth, strong case exists for capacity creation for MIBK. Surface coating market and rubber (tyre) market would drive the demand for MIBK. Growth rate of USA and Western Europe is estimated to be 1% and that of Asia Pacific is estimated to be 5% through 2014. Global consumption (period 2009) was 402,200 metric tons. Some applications (especially antiozonants) are moving to Asia, particularly China. MIBK consumption for antiozonants is forecast to grow at an average annual rate of 4–5% in Asia and 0–1% in the United States and Western Europe. World MIBK consumption will grow slowly from 2007 to 2012.

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METHYLAMINES

Considering the diversified application sector of

methylamines which are highly relevant to the Indian industrial and economic growth pattern, demand for methylamines is likely to go up steadily in India in the coming years. The overall outlook for methylamines is promising. This calls for additional capacity creation. Indian demand for methylamines is estimated to be 50,000 tonnes per annum.Global installed capacity of methylamines is estimated around 1.1 million tonnes per annum.

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SODIUM TRI POLY PHOSPHATE

Sodium Tripolyphosphate (STPP) is an inorganic sodium

salt, which is used as a vital auxiliary in synthetic detergents sector. For several years, sodium tripolyphosphate has been used as a major ingredient in detergents, and played a vital role in enhancing the performance of detergents. The market for STPP is expected to benefit from the fact that phosphorus-free assistants are not a complete substitute for phosphorus-based assistants. In India, STPP predominantly finds application in the production of detergents. The other important areas of applications include ceramics and food industries. The application areas are highly relevant to the industrial and economic growth pattern. Therefore, the demand for STPP would go up in tune with the overall industrial and economic growth pattern. The global Sodium Tripolyphosphate market is projected to reach 3.4 million metric tons by the year 2015. Growth in the market is driven by the sustained demand from detergents market.

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SUPER ABSORBENT POLYMERS

Demand for SAP has been rising steadily during the last

few decades. Global demand growth is forecast at 6% per annum through 2016. This is a result of rising demand for disposable diapers, primarily in countries with rising disposable incomes and low current penetration rate of SAP. Although smaller market in comparison to diapers, strong growth is forecast to continue in feminine hygiene products and in incontinence products in developed regions, as a result of efforts to produce slimmer, more efficient products. The application of SAP, in optical cables in particular, is expanding and the market prospect is excellent

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VITAMIN C

The demand for Vitamin C is likely to go up steadily in

the coming years, in view of the expected growth of the healthcare facilities in India. World production of synthesized vitamin C is currently estimated at approximately 110,000 tonnes annually. Global demand for vitamin C for the period of 2010 is around 120,000 tonnes, global sales of Vitamin C is over US$1020 million and growth rate in demand for Vitamin C is 3% per annum. Vitamin C represents more than 50% of the total production and sales of vitamins in the global market. China holds around 80% of world production of vitamin C. China plays a monopoly in the production of Vitamin C

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WASTE TYRE (TIRE)

UTILIZATION

The market for waste tires has grown in the past decade, and it is growing. The tires motorists drive on today can be shredded and used as fuel, burned to make fuel oil or pulverized into bits for fill in a football field or a playground.

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ABS RESIN

World consumption of ABS is projected to grow at an

average annual rate of about 4.0%, with rates of 5–5.5% in China, India and Oceania; 4.0–4.7% in the Middle East, Central and Eastern Europe, and Africa; and 3.2–3.9% in Indonesia, Mexico, Thailand, Malaysia, and Central and South America. Indian demand of ABS resin in 2010-2011 is estimated around 120,000 tons per annum. Growth rate in demand through 2020 is estimated to be 9% per annum. Global capacity will increase 4% per year through 2012, to 9.8 million tons per annum.The market has diverged into a general-purpose sector, where cost and productivity are the most important factors and engineering plastics sector is driving most of the industry's growth.

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BISMALEIMIDE TRIAZINE RESIN (BT RESIN)

BT resin has become the preferred laminate material for many manufacturers because of its high Tg, low dielectric constant and good insulation properties. In fact, BT is now apparently the standard substrate material for BGA's, and is also being used in CSP laminates. Japan accounts for an estimated 90% of worldwide output of the product and MGC alone accounts for 50%. PC Mitsubishi Gas Chemical and Hitachi Chemical, boasting 90% global market share.

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BISPHENOL A

Bisphenol A (BPA), phenolic resins and caprolactam were the leading end use segments for phenol in 2010, with 2,761,915 tons, 2,181,698 tons and 1,001,903 tons of demand, respectively, Together they accounted for more than 70% of global phenol demand. In terms of the end uses of phenol, a similar trend is expected to continue throughout the forecast period till 2020.The growth in demand for Bisphenol-A in India would be in tune with the growth of the epoxy resin industry. Growth rate in demand for Bisphenol-A through 2016 is estimated around 9 % per annum.

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CHLOROFORM

Globally, about 90-95% of the chloroform is used as a precursor for

HCFC-22, which is used in refrigerants and fluoropolymers such as polytetrafluoro-ethylene (PTFE). The demand for HCFC-22 in fluoropolymers is expected to witness growth, though the product’s demand in emissive applications, such as refrigerants, is expected to witness a gradual decline. However, growing environmental concerns and implementation of stringent regulations have contributed to a contraction in demand for HCFC-22 across majority of the developed countries in the past decade. Indian production is estimate 47000 metric tones per annum and global demand for Chloroform is estimated around 0.66 million metric tonnes per annum. The overall global consumption of chloroform is projected to decline, owing to the adoption of stringent regulatory framework for restricting the use of ozone depleting substances, such as HCFCs, chlorofluorocarbons (CFCs), halons, and carbon tetrachlorides. Global chloroform consumption is likely to be 0.64 million tonnes per annum by 2015.

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CHLOROMETHANE

In India there are four major producers of chloromethanes with total combined capacity of 1.44 lakh tonnes. Production of chloromethanes in the year 2009-2010 was 1.28 lakh tonnes, which increased to 1.44 lakh tonnes in 2010-2011 indicating 100 percent utilisation of installed capacity. Total consumption of chloromethane [methyl dichlorine (MDC) and chloroform] has increased from 4.02 lakh tonnes in 2005-2006 to 4.58 lakh tonnes in 2010-2011, thereby registering a modest growth of 4 percent per annum. The major application of MDC is in pharmaceuticals, paint industry as paint remover and degreasing agent followed by refrigerants, foam blowing agent and in agrochemicals. However the consumption is likely to grow at around 5% per annum and this rate of demand for chloromethane is estimated to grow to around 5.82 lakh tonnes in 2015-2016.

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DIETHYL SULPHATE

Diethyl sulphate is predominantly used as an ethylating agent in the manufacture of aromatic and aliphatic ethers, amines, amides, esters and imides for dyestuff, pharmaceutical and flavor synthesis. The Pharmaceutical and Dyestuff industry represent the major sector of applications for Diethyl sulphate. In such sectors, the product is used asethylating and sulphonating agent. Indian demand in the period April 2010 to March 2011is estimated 8000 tons per annum and growth rate in demand 6% to 7% per annum. Global demand is estimated around 200,000 metric a tonne per annum and global growth rate in demand is 2 to 3% per annum.

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ETHYL SILICATE- PRODUCT OVERVIEW Ethyl silicate is manufactured mostly by integrated

process with metallurgical silicon as starting material. The silicon tetrachloride method is inherently prone to trace metal contamination and process variability. Indian production of ethyl silicate is around1200 tonnes per annum. Total demand for ethyl silicate including paint and investment casting is 1500 tonnes per annum. Imports for the year 2009-2010 of ethyl silicate is 160 tonnes per annum and exports for the year 2009-2010 is of negligible quantity.

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ISOBUTYRIC ACID

Isobutyric acid, also known as 2-methylpropanoic acid,

is a carboxylic acid with structural formula (CH3)2-CH-COOH. It is found in the free state incarobs (Ceratonia siliqua) and in the root of Arnica dulcis, and as an ethyl ester in croton oil. Isobutyric acid is an isomer of n-butyric acid; they have the same chemical formula C4H8 O2 but a different structure. Isobutyric acid cannot be obtained by the fermentation but by the oxidation of isopropyl alcohol with potassium bichromate and sulfuric acid. Isobutyric acid melts at -47 oC and boils at 154 oC. It is slightly soluble in water but soluble in ethanol, ether and organic solvents. Butyric acid is a strong acid and reacts with bases, strong oxidants and metals.

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SPECIALITY CHEMICAL –ISOPHORONE

Isophorone is produced commercially by the catalytic

condensation of acetone at elevated temperature and pressure and is then purified by distillation. The worldwide production of isophorone is estimated to be in the order of 100,000 tons per year.Production sites are in the EU (Germany, France), the U.S., Japan and India. Isophorone is widely used as a solvent for a number of synthetic resins and polymers, as well as in special application paints and printing inks. It is a chemical intermediate and an important solvent in certain herbicide formulations. The majority of the consumer products containing isophorone are selective herbicides, while professional use is focused on lacquers and varnishes and solvents.

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NEOPENTYL GLYCOL

Neopentyl Glycol (NPG) is shipped as flake, molten and slurry. It is readily soluble at room temperature in water, alcohols, glycol ethers, ketones and esters. Global demand is around 0.5 million tonnes per annum. There is growing demand for intermediates, particularly those used in coating applications. Powder coatings based on NPG show improved impact and scratch resistance, and high gloss. Synthetic lubricants made from NPG provide good lubricity and reduced corrosivity. Both of these uses will grow. Global demand growth is forecast at 3.1% per year.

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