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 FoodResearch. World usage of food colours is currently about40,000-50,000 tons. Although current economic conditionsmean "annual growth levels have started to fall off sharply,"says the report, by the middle of the next decade, theglobal market value is expected to reach $1.6 billion, up10% from its present levels. From 2005 to 2009, the globalmarket for natural colours increased almost 35% in value,with much future growth expected to come from naturalcolours and colouring foodstuffs. Foods account for some67% of the food colouring global market, followed by softdrinks (28%) and alcoholic beverages (5%).

The demand of Caramel colour in the market is immenseand therefore its market position is splendid. Hence it is anexcellent field to venture.

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COCONUT PROCESSING UNIT (COMPLEX)

India is the third largest coconut producing country inthe world .It contributes 15% of the area and 25% ofthe production of coconut in the world. Coir and coirproducts, milling copra and coconut oil are the majorcommercial products produced in the country. In Indiaas much as 48% of the coconut production is used foredible and religious purposes, 10% as tender coconut,roughly 30% as milling copra for oil extraction, 8% forthe manufacture of edible copra and the rest isprocessed into products like desiccated coconut andcoconut cream. The production of coir and coir productsconstitutes 55% of the world output. India’s export tradeaccounts 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 scaleindustry to small scale industry unit. Now a day there is a very goodexport scope of garments. In garment industry there is requirementof laundry unit or dry cleaning unit. Laundry and dry cleaning unitgrowth is 5%, which is now, meet up by local operators. But due tothe rapid population growth and rapid modernization more laundryand dry cleaning units are required to keep space with the socialdemand. Any entrepreneur may launch this unit will be successful.The present day sophisticated standard of living recognizes theimportance of cleanliness and smart dressings. It is due to thisreason that the modern human being has accepted dry cleaning asa must for a smart look. Hospitality and healthcare are governinggrowth in the Indian on premise laundry market. Laundry, today, isvery much an industry even within the Government policies.Thelaundry market is growing at a good rate and more and moreestablishments in both commercial and institutional sectors arefacing the challenge of choosing between an in-house laundry whichwill give more control over cost and quality or outsourcing which willallow them to focus on their core business.

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FASTENER(AUTOMATIC COLD FORGE PROCESS)

The Indian Fastener Industry is estimated to have adomestic market of around INR 1500 crore. Automobileindustry is the biggest consumer of fasteners. Mild steelfasteners are primarily manufactured by the unorganizedsector while the high tensile fasteners require superiortechnology and dominated by companies in theorganized sector. The organized sector commands nearly70 percent of the fasteners market while the rest iscontrolled by the unorganized sector and imports.

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FROZEN FINGER CHIPS

Frozen Food in India industry profile provides top-line qualitativeand quantitative summary information including: market share,market size (value and volume 2006-10, and forecast to 2015). Theprofile also contains descriptions of the leading players including keyfinancial metrics and analysis of competitive pressures within themarket. The market for frozen food in India increased at acompound annual growth rate of 15.2% between 2004 and 2009.The Indian frozen food market generated total revenues of $325.9million in 2010, representing a compound annual growth rate(CAGR) of 16.6% for the period spanning 2006-2010. The foodprocessing industry has been slated for accelerated growth. It isprojected to be a futuristic industry and it is anticipated that, overthe 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 entrepreneurventuring into this project will find it very lucrative.

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LEAD ACID BATTERY

Lead acid batteries are considered to have one of thefastest global growth rates. Usage of lead acid battery isexpected to grow further with technological advancementsin the electric vehicles market. Although efforts are on todevelop a “miracle battery” for electric vehicles, lead acidbatteries are one of the few battery technologies that areconsidered as the workhorses of today’s Electric Vehiclefleet. The influx of cutting edge technology has broughtforth a new genre of long lasting, lead acid batteriesfeaturing smaller size and lightweight attributes. The globalmarket for Lead Acid Batteries (Automotive) is forecast toreach US$15.4 billion by the year 2015, charged bysustained demand from automobiles industry, specificallythe aftermarket/replacement market. Emergence of next-generation electric vehicles (EVs) and hybrid electricvehicles (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 aswell as many unorganized private tiny and small scalesector. There is scarcity of availability of green mangoesthroughout the year. It is mostly available in our countryin the month of April – August. Market demand almostincreases by 3% per annum which is actually populationgrowth rate. There is very good export demand in theEuropean countries as well as in the Middle East Asiancountries.

Therefore the demand of mango pickle in the market isenormous 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 CopolymerPolypropylene) pipe systems in new buildings has resultedin a surging demand for PPR material in expanding marketsacross Eastern Europe, North Africa, andAsia. According tothe relevant data plastic sheet, plastic pipe and plastic-steelwindows and doors are subject to market interest rate of53% above market demand, an upward trend. In WesternEurope, the advantages of PPR pipes are sometimesoutweighed by the higher labour costs incurred when fittingthe systems, but, in markets with a lower cost of labour,PPR’s advantages are driving a big increase in demand. Asper industry estimates, global demand for plastic pipe isexpected to increase 4.5% annually to 8.1 billion metres in2012 in weight terms, consumption is projected to expand4.6% per year to 18.1 million metric tons.

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

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PRECIPITATED CALCIUM CARBONATE

Worldwide, almost 10 million tons of precipitated calciumcarbonate (PCC) is produced annually for use in a widerange of end-use applications. Roughly 70% of the totalis consumed by the paper industry for the filling andcoating of paper. Large amounts of PCC are also used inthe filling of polymers, as a pigment in paint, and as athixotrope in sealant and plastisol formulations. Inaddition, PCC with sufficient purity can be used for foodand pharmaceutical applications. Global demand forPrecipitated Calcium Carbonate (PCC) is forecast to growby an average of 4%py from around 13Mt in 2007 tonearly 16Mt by 2012. Growth rates will be highest in thepaint (6%py) and rubber (4%py) industries though thelargest increases in terms of tonnage will be in paperand 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 aCAGR of 4.43% over the period from 2001 to 2011. The growth hasbeen driven by improvement in per capita consumption, which inturn is attributable to rising income levels and living standards. Interms of volumes, palm oil, soyabean oil and mustard oil are thethree largest consumed edible oils in India, with respective sharesof 46%, 16% and 14% in total oil consumption in 2010.The Indianedible oil market is the world’s fourth-largest after the USA, Chinaand Brazil. A growing population, increasing rate of consumptionand increasing per capita income are accelerating the demand foredible oil in India. India is a leading player in edible oils, being theworld’s largest importer and the world’s third-largest consumer.Each year, India consumes over 10 million tons of edible oils. Edibleoils have a high penetration of 90% in India.

Since the applications and demand of refined oil is immensetherefore the potential of the product is excellent. It is one of theimperative fields to endeavour.

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SHRIMP FARMING(BREEDING IN SEA WATER)

The global shrimp industry has experienced phenomenalgrowth over the last twenty-two years generating morethan 730,000 metric tons of farm cultured productannually. This industry represents a market valueexceeding 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 theworld market. Shrimp is now the most importantinternationally traded fishery commodity in terms ofvalue.

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

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UNSATURATED POLYESTER RESIN

Over the next 5 years, total unsaturated polyester resinsconsumption across the globe is expected to continue strong growthmomentum at 6.3% CAGR. The unsaturated polyester resins marketis expected to reach US $ 5.8 billion by 2015. The demand forpolymers - thermosets, alloys, blends and composites - wasexpected to rise to nearly 9.5 million TPA by the year 2011-12. Themain consumer segments of polymers - buildings and construction,plasticulture, packaging, teletronics, transportation, domesticconsumer goods - will all require increasing petro-chemical inputs.The expansion will not be limited to quantum; it will be supportedalso by technology upgradation and higher value addition. UPRmarket is expected to grow in near future because of newapplications and demands. As wind energy and construction markethave shown highest growth in last few years it is expected that, thisgrowth will facilitate unsaturated polyester resins industry and it willcontinue the same performance and generate high revenue for theUPR manufacturer. In Western Europe, annual growth of 7–8% isforecast for unsaturated polyester resin consumption in thissegment 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 iteasier to apply as a disinfectant, whereas other bleaching agentssuch as chlorine and sodium hypochlorite are gaseous and liquidrespectively. The demand for bleaching powder is likely to increasein tune with the Indian economic and industrial growth pattern.Considering the case exists create capacity for bleachingpower/calcium hypochlorite depending upon the regional demandsupply scenario. Firm tie up arrangement for the supply of chlorineon long term basis is necessary. Capacity of bleaching powderconcentrate (available chlorine more than 70%) in the world is270000 tonnes per annum. Capacity of bleaching powderconcentrate in China is 60000 tonnes per annum. The mainingredient in bleaching powder concentrate is calcium hypochlorite.Based on different production processes, bleaching powderconcentrate also contains calcium chloride or sodium chloride andcalcium hydroxide. The effective chlorine content is more than 60%.By contrast, the effective chlorine content in conventional bleachingpowder is around 30%.

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CARBON FIBRE

The global demand on carbon fiber composites wasvalued at roughly US$10.8 billion in 2009, whichdeclined 8 to 10% from the previous year. It is expectedto reach US$13.2 billion by 2012 and to increase toUS$18.6 billion by 2015 with an annual growth rate of7% or more. Strongest demands come from aircraft &aerospace, wind energy as well as automotive industry.Around90 percent of all commercial carbon fibers areproduced by the thermal conversion of PAN precursorfibers. Commercially available PAN fibers are used asprecursors to produce carbon fibers in large tow counts,having up to 24k filaments. Indian Import is around 3metric tons.Consumption by other manufacturingindustries is growing even faster, by about 15% peryear.

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2-ETHYL HEXANOL (OCTANOL)

2-Ethylhexanol is produced industrially by the aldolcondensation of n-butyraldehyde, followed byhydrogenation of the resulting hydroxyaldehyde. About2,500,000 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 fullyintegrated facility. Most facilities make n-butanol andisobutanol in addition to 2-ethylhexanol.The demand for oxoalcohols would go up steadily in India in the coming years.Considering the growth in demand for oxo alcohols, strongcase exists for capacity creation. Firm supply source forpropylene for the project is important. PVC is the importantuser industry for phthalate plasticizers. The demand forphthalate plasticizers would largely move in tune with theperformance and growth of the PVC industry. Indiandemand for octanol is estimated around 60,000 tonnes perannum and estimated growth ratio of octanol is 7%.

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DIPHENYL OXIDE

Present global production level of diphenyl ether isaround 65000 tonnes per annum. Diphenyl oxide, orDPO, is a key raw material in the production of a varietyof industrial products such as surfactants, flameretardants, fragrances, chemical intermediates and heattransfer fluids. DPO is an essential ingredient used tomanufacture Therminol VP-1 heat transfer fluid, the heattransfer fluid of choice for the solar industry. Globaldemand of diphenyl oxide is increasing and hence itsproduction is likely to increase in next few years.

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METHYL ISOBUTYL KETONE (MIBK)

Considering the steady growth in demand and theapplications in thrust areas of growth, strong case existsfor capacity creation for MIBK. Surface coating marketand rubber (tyre) market would drive the demand forMIBK. Growth rate of USA and Western Europe isestimated to be 1% and that of Asia Pacific is estimatedto be 5% through 2014. Global consumption (period2009) was 402,200 metric tons. Some applications(especially antiozonants) are moving to Asia, particularlyChina. MIBK consumption for antiozonants is forecast togrow at an average annual rate of 4–5% in Asia and 0–1% in the United States and Western Europe. WorldMIBK consumption will grow slowly from 2007 to 2012.

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METHYLAMINES

Considering the diversified application sector ofmethylamines which are highly relevant to the Indianindustrial and economic growth pattern, demand formethylamines is likely to go up steadily in India in thecoming years. The overall outlook for methylamines ispromising. This calls for additional capacity creation.Indian demand for methylamines is estimated to be50,000 tonnes per annum.Global installed capacity ofmethylamines is estimated around 1.1 million tonnes perannum.

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SODIUM TRI POLY PHOSPHATE

Sodium Tripolyphosphate (STPP) is an inorganic sodiumsalt, which is used as a vital auxiliary in syntheticdetergents sector. For several years, sodiumtripolyphosphate has been used as a major ingredient indetergents, and played a vital role in enhancing theperformance of detergents. The market for STPP isexpected to benefit from the fact that phosphorus-freeassistants are not a complete substitute for phosphorus-based assistants. In India, STPP predominantly findsapplication in the production of detergents. The otherimportant areas of applications include ceramics and foodindustries. The application areas are highly relevant to theindustrial and economic growth pattern. Therefore, thedemand for STPP would go up in tune with the overallindustrial and economic growth pattern. The global SodiumTripolyphosphate market is projected to reach 3.4 millionmetric tons by the year 2015. Growth in the market isdriven by the sustained demand from detergents market.

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VITAMIN C

The demand for Vitamin C is likely to go up steadily inthe coming years, in view of the expected growth of thehealthcare facilities in India. World production ofsynthesized vitamin C is currently estimated atapproximately 110,000 tonnes annually. Global demandfor vitamin C for the period of 2010 is around 120,000tonnes, global sales of Vitamin C is over US$1020 millionand growth rate in demand for Vitamin C is 3% perannum. Vitamin C represents more than 50% of thetotal production and sales of vitamins in the globalmarket. China holds around 80% of world production ofvitamin C. China plays a monopoly in the production ofVitamin C

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SUPER ABSORBENT POLYMERS

Demand for SAP has been rising steadily during the lastfew decades. Global demand growth is forecast at 6%per annum through 2016. This is a result of risingdemand for disposable diapers, primarily in countrieswith rising disposable incomes and low currentpenetration rate of SAP. Although smaller market incomparison to diapers, strong growth is forecast tocontinue in feminine hygiene products and inincontinence products in developed regions, as a resultof efforts to produce slimmer, more efficient products.The application of SAP, in optical cables in particular, isexpanding and the market prospect is excellent

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WASTE TYRE (TIRE) UTILIZATION

The market for waste tires has grown in the pastdecade, and it is growing. The tires motorists drive ontoday can be shredded and used as fuel, burned to makefuel oil or pulverized into bits for fill in a football field ora playground.

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ABS RESIN

World consumption of ABS is projected to grow at anaverage annual rate of about 4.0%, with rates of 5–5.5% in China, India and Oceania; 4.0–4.7% in theMiddle East, Central and Eastern Europe, and Africa; and3.2–3.9% in Indonesia, Mexico, Thailand, Malaysia, andCentral and South America. Indian demand of ABS resinin 2010-2011 is estimated around 120,000 tons perannum. Growth rate in demand through 2020 isestimated to be 9% per annum. Global capacity willincrease 4% per year through 2012, to 9.8 million tonsper annum.The market has diverged into a general-purpose sector, where cost and productivity are the mostimportant factors and engineering plastics sector isdriving most of the industry's growth.

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BISMALEIMIDE TRIAZINE RESIN (BT RESIN)

BT resin has become the preferred laminate material formany manufacturers because of its high Tg, lowdielectric constant and good insulation properties. Infact, BT is now apparently the standard substratematerial for BGA's, and is also being used in CSPlaminates. Japan accounts for an estimated 90% ofworldwide output of the product and MGC aloneaccounts for 50%. PC Mitsubishi Gas Chemical andHitachi Chemical, boasting 90% global market share.

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BISPHENOL A

Bisphenol A (BPA), phenolic resins and caprolactam werethe leading end use segments for phenol in 2010, with2,761,915 tons, 2,181,698 tons and 1,001,903 tons ofdemand, respectively, Together they accounted for morethan 70% of global phenol demand. In terms of the enduses of phenol, a similar trend is expected to continuethroughout the forecast period till 2020.The growth indemand for Bisphenol-A in India would be in tune withthe growth of the epoxy resin industry. Growth rate indemand for Bisphenol-A through 2016 is estimatedaround 9 % per annum.

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CHLOROFORM

Globally, about 90-95% of the chloroform is used as a precursor forHCFC-22, which is used in refrigerants and fluoropolymers such aspolytetrafluoro-ethylene (PTFE). The demand for HCFC-22 influoropolymers is expected to witness growth, though the product’sdemand in emissive applications, such as refrigerants, is expectedto witness a gradual decline. However, growing environmentalconcerns and implementation of stringent regulations havecontributed to a contraction in demand for HCFC-22 across majorityof the developed countries in the past decade. Indian production isestimate 47000 metric tones per annum and global demand forChloroform is estimated around 0.66 million metric tonnes perannum. The overall global consumption of chloroform is projected todecline, owing to the adoption of stringent regulatory framework forrestricting 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 tonnesper annum by 2015.

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CHLOROMETHANE

In India there are four major producers of chloromethaneswith total combined capacity of 1.44 lakh tonnes.Production of chloromethanes in the year 2009-2010 was1.28 lakh tonnes, which increased to 1.44 lakh tonnes in2010-2011 indicating 100 percent utilisation of installedcapacity. Total consumption of chloromethane [methyldichlorine (MDC) and chloroform] has increased from 4.02lakh tonnes in 2005-2006 to 4.58 lakh tonnes in 2010-2011, thereby registering a modest growth of 4 percent perannum. The major application of MDC is in pharmaceuticals,paint industry as paint remover and degreasing agentfollowed by refrigerants, foam blowing agent and inagrochemicals. However the consumption is likely to growat around 5% per annum and this rate of demand forchloromethane is estimated to grow to around 5.82 lakhtonnes in 2015-2016.

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DIETHYL SULPHATE

Diethyl sulphate is predominantly used as an ethylatingagent in the manufacture of aromatic and aliphaticethers, amines, amides, esters and imides for dyestuff,pharmaceutical and flavor synthesis. The Pharmaceuticaland Dyestuff industry represent the major sector ofapplications for Diethyl sulphate. In such sectors, theproduct is used asethylating and sulphonating agent.Indian demand in the period April 2010 to March 2011isestimated 8000 tons per annum and growth rate indemand 6% to 7% per annum. Global demand isestimated around 200,000 metric a tonne per annumand 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 integratedprocess with metallurgical silicon as starting material.The silicon tetrachloride method is inherently prone totrace metal contamination and process variability. Indianproduction of ethyl silicate is around1200 tonnes perannum. Total demand for ethyl silicate including paintand investment casting is 1500 tonnes per annum.Imports for the year 2009-2010 of ethyl silicate is 160tonnes per annum and exports for the year 2009-2010 isof 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 (Ceratoniasiliqua) and in the root of Arnica dulcis, and as an ethylester in croton oil. Isobutyric acid is an isomer of n-butyric acid; they have the same chemical formula C4H8O2 but a different structure. Isobutyric acid cannot beobtained by the fermentation but by the oxidation ofisopropyl alcohol with potassium bichromate and sulfuricacid. Isobutyric acid melts at -47 oC and boils at 154 oC.It is slightly soluble in water but soluble in ethanol, etherand organic solvents. Butyric acid is a strong acid andreacts with bases, strong oxidants and metals.

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SPECIALITY CHEMICAL –ISOPHORONE

Isophorone is produced commercially by the catalyticcondensation of acetone at elevated temperature andpressure and is then purified by distillation. Theworldwide production of isophorone is estimated to be inthe order of 100,000 tons per year.Production sites arein the EU (Germany, France), the U.S., Japan and India.Isophorone is widely used as a solvent for a number ofsynthetic resins and polymers, as well as in specialapplication paints and printing inks. It is a chemicalintermediate and an important solvent in certainherbicide formulations. The majority of the consumerproducts containing isophorone are selective herbicides,while professional use is focused on lacquers andvarnishes and solvents.

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NEOPENTYL GLYCOL

Neopentyl Glycol (NPG) is shipped as flake, molten andslurry. It is readily soluble at room temperature in water,alcohols, glycol ethers, ketones and esters. Globaldemand is around 0.5 million tonnes per annum. Thereis growing demand for intermediates, particularly thoseused in coating applications. Powder coatings based onNPG show improved impact and scratch resistance, andhigh gloss. Synthetic lubricants made from NPG providegood lubricity and reduced corrosivity. Both of theseuses will grow. Global demand growth is forecast at3.1% per year.

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