CEW November 2016

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Chemical Engineering World

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CEW Contents CHEMICAL ENGINEERING WORLD RNI REGISTRATION NO. 11403/66 Chairman Publisher & Printer Chief Executive Officer

EDITORIAL

Editor Editorial Advisory Board Contributing Editors Sub Editor

Maulik Jasubhai Shah Maulik Jasubhai Shah Hemant Shetty Mittravinda Ranjan (mittra_ranjan@jasubhai.com) D P Misra, N G Ashar, Prof. M C Dwivedi P V Satyanarayana, Dr S R Srinivasan, R B Darji, R P Sharma Bernard Rapose (bernard_rapose@jasubhai.com)

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Dilip Parab Brenda Fernandes V Raj Misquitta (Head), Arun Madye

VOL. 51 | ISSUE NO. 11 | NOVEMBER 2016 | MUMBAI | ` 150 NEWS Industry News 6 Technology News 28

FEATURES Brewing Sustainable Growth 30 - Mr. R S Jalan- GHCL Limited

Place of Publication: Jasubhai Media Pvt Ltd

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How Predictive Analytics Maximises Operational Excellence 34 - Dr. Warren Becraft & Robert Golightly- AspenTech

Amit Bhalerao (amit_bhalerao@jasubhai.com) Prashant Koshti (prashant_koshti@jasubhai.com)

Sizing and Selecting the Proper Metering Pump 40 - Tom O’Donnell- Neptune Chemical Pump Company & PSG, Ravi Prasad- PSG India

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4 • November 2016

Selection of Correct Non Return Valve in a Piping System 00 for Larger Benefits 44 -- Dinesh Upadhyay- CRANE ChemPharma & Energy Flow Solutions, India

MARKETING INTIATIVES Toshniwal’s Multi-vane Semi Dry Vacuum Pumps for Packaging Industry 47

PRODUCTS

48

EVENTS

53

PROJECT UPDATE

54

BOOK SHELF

58

AD INDEX

59

INTERVIEW

60

“This is a great time for course correction” -Mr Subramanian Sarma, Managing Director & Chief Executive Officer, L&T Hydrocarbon Engineering Limited

Cover Page Image: GHCL Limited Disclaimer: The Editorial/Content team at Jasubhai Media Pvt Ltd has not contributed to writing or editing “Marketing Initiative.”

Readers would do well to treat it as an advertisement.

Printed and published by Mr Maulik Jasubhai Shah on behalf of Jasubhai Media Private Limited, 26, Maker Chamber VI, Nariman Point, Mumbai 400 021 and printed at The Great Art Printers, 25, S A Brelvi Road, Fort, Mumbai 400 001 and published from 3rd Floor, Taj Building, 210, Dr. D N Road, Fort, Mumbai 400 001.

Editor: Ms Mittravinda Ranjan, 26, Maker Chamber VI, Nariman Point, Mumbai 400 021.

Chemical Engineering World

CEW Press Release LANXESS’s Saltigo GmbH Expands its Capacity

Cologne, Germany: Innovation remains a key means of creating value in the chemical industry. That is according to Deloitte’s latest report “Innovation 4.0 – beyond pure product innovation.”

But innovative products are no longer the sole guarantee for market success. Fully integrated solutions to meet complex and dynamically changing customer requirements have taken their place. Added value is achieved with these kinds of customized solutions that combine technologies and services – in other words, diverse innovation.

“This observation is nothing new when it comes to exclusive synthesis,” points out Dr. Torsten Derr, Managing Director of Saltigo GmbH. The customer’s business success and the optimal suppor t to achieve this take priority. “In this case, it remains impor tant for us to keep on augmenting our project pipeline with new, innovative synthesis tasks that will enable us to put our technology por tfolio and skills to maximum use. Ser vices ranging from project management, process development, analytics and quality assurance right through to registration advice play an increasingly impor tant role in generating sustainable value added for our customers,” says Derr. The subsidiary of specialty chemicals company LANXESS embodies this fundamental principle in its work as a flexible ser vice provider and one-stop supplier for the life science industries. The company is thus showcasing its wide range of ser vices for the exclusive synthesis of chemical active ingredients and intermediates at this year’s CPhI trade fair in Barcelona from October 4 to 6.

Service as a success factor Service stretches across the entire value creation chain from synthesis planning through process development and piloting to joint campaign planning and supply chain optimization. It also includes involvement in the registration of new substances. In this way, the company supports its customers along the product life cycle up to the market readiness of the end products and beyond.

Derr explains: “Companies can most readily stand out from the competition by offering an intelligently composed spectrum of 6 • November 2016

services that provide extra benefits for their customers, of course by demonstrating a high degree of flexibility. Because a rapid and targeted response to customers’ needs and the requirements of the market is a crucial success factor, as it enables them to leverage competitive advantages.”

Competent partner for more complex molecules The Deloitte report rightly also points out that the number of molecules launched each year onto the market has been in decline for decades. However, the complexity of the new molecules keeps on increasing. The challenge for exclusive synthesis also represents a key unique selling point for versatile, flexible and experienced suppliers. This is where Saltigo can score points as a custom manufacturer with its comprehensive technology portfolio and many years of process development expertise. “We boast a network of more than 10 facilities, enabling us to perform every conceivable kind of chemistry – from phosgenation and high-pressure hydrogenation right through to low-temperature reactions. We can manufacture even the most complicated molecular compounds. Our chemists use these facilities to develop processes and construct molecules along the same lines as playing with toy construction blocks,” Derr adds. “Our high level of process engineering expertise is a key to success in this field.

The know-how built up at Saltigo over decades enables the timely upgrading of syntheses of even highly complex chemicals from laboratory scale to industrial production.”

Expansion on schedule Saltigo is one of the world’s largest custom manufacturers – its production facilities are located in Germany. “In recent years we have won many contracts against competitors from Asia – despite its frequently cited advantages as a production location. Instead of pulling our company out of Germany, we are investing here – currently EUR 60 million in Leverkusen – so as to increase our synthesis capacities for customer projects by around one third,” Derr says. The conversion and development work that is mainly being carried out at ZeTO as part of this investment project is running according to plan. The project is due for completion by the end of 2017.

The ZeTO is of central importance for Saltigo. At the moment, a combination of 70 flexibly connectible reactor modules and 10 solids isolation lines manufacture a great variety of products on a scale ranging from below 100 kg to several thousand metric tons. Characteristic of the ZeTO and vir tually unique is the broad portfolio of technical equipment and available synthesis technologies, which can be combined almost at will. These include chemical core competencies such as chlorination, fluorination, hydrogenation and low-temperature reactions down to -100 °C. Organometallic and homogeneously catalyzed reactions and enzyme-catalyzed synthesis steps complete the offering. The technology portfolio is being constantly expanded in cooperation with research departments and universities and molded to the requirements of customers.

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CEW Press Release GHCL Limited Q2FY17 Net Profit up by 79.09 per cent New Delhi, India: GHCL Limited has announced its second quarter performance ended 30th September, 2016.

Standalone Performance (Q2FY17 v/s Q2FY16) • Income from operations for Q2FY17 grew by 1.85 per cent to ` 703.14 crore as compared to ` 690.34 crore in the corresponding quarter ended September 30, 2015 • EBIDTA grew by 20 per cent to ` 180.39 crore as against ` 150.14 crore in the corresponding quarter previous year • Net Profit (PAT) grew by 79 per cent to ` 90.28 crore as compared to ` 50.41 crore in the corresponding quarter previous year

Half yearly performance • Income from operations grew by 9.27 per cent to ` 1429.83 crore as compared to ` 1308.54 crore of the corresponding period of last year • EBIDTA grew by 22 per cent to ` 376.82 crore as against ` 309.09 crore in the corresponding quarter previous year • PAT grew by 72.35 per cent at ` 193.11 crore as compared to ` 112.04 crore of the corresponding period last year Business Segments (Q2FY17 VS Q2FY16) Inorganics Chemicals division marginally declined to ` 404.67 crore in Q2FY17 as compared to ` 413.34 crore in Q2FY16 • Home Textiles business grew by 7.75 per cent to ` 298.47 crore in Q2FY17 as against ` 277 crore in Q2FY16

•

Commenting on the financial performance, Mr. R S Jalan, Managing Director, GHCL Limited said, “During the present quarter, we had a good financial performance on the back of improved efficiency, lower utility costs and better capacity utilization leading to strong growth in the bottom lines for us.

We continue to witness strong growth in our home textiles business and consolidation in the inorganic chemicals business going forward”

4th Edition of IFAT India sets new records Mumbai, 2016: Boasting 23 percent more exhibition space, the fourth—and so far largest—IFAT India has now closed its doors.

Between September 28 and 30, 2016, more than 5,000trade visitors (which are 23 percent more than last year) came to the Bombay Exhibition Centre in Mumbai to see the latest products and services for water, sewage, refuse and recycling. One of the key themes at this year’s event was the acute water crisis on the subcontinent.

Stefan Rummel, Managing Director of Messe München, explains: “Especially at the current time, water shortage is an acute theme in the environmental sector, in particular in India. At IFAT India 2016 the exhibition space dedicated to water and wastewater management has risen by 71 percent. And the interest in solid 8 • November 2016

waste management has increased remarkably, too. This upswing underlines just how important our event is, as a showcase for solutions to the current challenges being faced in the country, and as a forum for bringing together supply and demand.”

Dr. Uttam Kumar Sinha, fellow at the Institute for Defence Studies and Analyses in New Delhi, points out how serious the effects of water shortages are: “The water crisis in India not only endangers life, it holds tremendous conflict potential and threatens internal security. Water management in India is also linked to the regional policies and diplomacy. Innovative technologies will be urgently needed in India for smart and effective water management policies.

IFAT India offered the ideal opportunity to successfully engage with technology suppliers in the sector.”

Strong international participation Covering 6,100 square meters of exhibition space—a rise of 23 percent—IFAT India 2016 was bigger than ever before. Also in terms of visitors, the numbers exceeded expectations: For the first time, more than 5,000 trade visitors participated in the event.

Once again IFAT India had a very strong international component.

Of the 143 exhibitors, over half, i.e. 54 percent, came from outside India. After India the biggest contingents of exhibitors came from Germany, China, Switzerland, Italy and the US (in this order).

The exhibitors’ praised the strong footfall of the visitors at their booths and their high professional level. Vikas Agarwal, Associate Vice President of Kirloskar Brothers, noted: “At IFAT India you always meet the suitable persons for your business.

This year was especially crowded and the visitors were of high quality.” Also Ninad Kelkar, Business Team Leader at REHAU, was pleased: “We have been exhibiting at IFAT India since its inception. The trade fair helps us showcase our products to the right audience. It is a platfor m where we get to meet gover nment officials, exper ts and discuss solutions for contemporar y issues in this industr y.”

Top-class supporting program Igor Palka, Chief Operating Officer of Messe München India, is more than satisfied with the final result: “The feedback from the exhibitors and visitors was overwhelming. The audience liked in par ticular the high-caliber suppor ting program.” Many new items featured this year in the program, among them the Active Learning Centre, a training platform for young talent and skilled workers in the Indian environmental sector, and the Sino-Indian Environmental Technology and Industry Dialogue, aimed at promoting bilateral exchange between China and India. In the Innovation Exchange Forum the focus was not only on water management but also on waste processing. In particular IFAT India highlighted modern processing techniques, such as the potential offered by biogas plants in India, and by waste-to-energy solutions. The suppor ting program featured a high-ranking line-up of speakers from India and abroad—from politics, business and science and research.

Chemical Engineering World

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CEW Press Release 6 Billion Liters of Ethanol Could Have Been Generated Besides Reducing Smog

Birla Carbon awarded Golden Peacock Global Award for Sustainability

Pune, India: In early October 2016, according to NASA Ear th Observatory, its satellites began to detect small fires in Punjab, and the number of fires increased rapidly in the following weeks.

By November, thousands of fires burned across the state, and a thick pall of smoke hovered over India. According to NASA, a staggering amount of 32 million tonnes of agriculture residue were burned in Punjab adversely affecting the air quality.

Mumbai, India: Birla Carbon has announced that it has been recognized with the ‘Golden Peacock Global Award for Sustainability’, at an event held in London. The award was in recognition of Birla Carbon’s continued efforts towards achieving sustainable operations. The award was conferred by the ‘Institute of Directors’, India at the ‘16th London Global Convention on Corporate Governance & Sustainability’ and the Golden Peacock Awards Presentation Ceremony’ at the Millennium Hotel London Mayfair, London.

Since the fires are small, shor t-lived, and bur n at relatively low-temperatures, the smoke generally stays near the surface.

On November 2, winds carr ied a stream of smoke—likely mixed with small par ticles of soil, dust, and par tially bur ned p l a n t m a t e r i a l — t owa r d N ew D e l h i , p u s h i n g t h e l eve l s o f par ticulate matter in the capital city to unusually high levels.

The worsening situation can be gauged by the fact that the Delhi Government has announced 3-days shut down of schools across the city-State.

The award was presented to Dr Gilles Moninot, Global Sustainability Director, Birla Carbon, by Baroness Sandip Verma, Global Chairperson, Advisory Council, Institute Of Directors, India and Chairperson, European External Affairs Committee, in the presence of Vijay Karia, Chairman & Managing Director, Ravin Group of Companies, India, Stephen Haddrill, Chief Executive, Financial Reporting Council, UK and Lt. Gen. J S Ahluwalia, PVSM (Retd), President, Institute Of Directors, India.

Praj Industries has developed a long ter m solution to the farmer’s challenge of disposing off ligno cellulosic waste – agri residue in this case – and turning it into 2nd Generation “Bio” Ethanol. This is an efficient technology of converting agri waste into fuel grade ethanol and a permanent solution to an age old agri residue burning.

Praj Industries is working with a leading Equipment Manufacturer to handle the collection and baling of biomass for downstream production of 2G Ethanol. Fur ther, Indian Oil Corporation Limited (Indian Oil), India’s flagship national oil company, has selected Praj as technology par tner for setting up multiple 2G bio-ethanol plants based on their indigenously developed technology. Indian Oil will be setting up three such 2G bio-ethanol plants, out of which, one plant is expected to be in the state of Haryana. Praj is also in the advanced stage of discussion with another project developer to set up a bioethanol plant in Punjab.

Mr. Pramod Chaudhari, Executive Chairman of Praj Industries, said: “Praj is committed to deliver sustainable and clean energy solutions and with the use of our 2G bio-ethanol technology; we can reduce Smog levels as well as pollution arising from burning of agri residue to a great extent. Besides, the collection of agriculture waste will create employment for thousands of rural people, which in itself will help create a ‘sustainable’ revenue model for the farmers, rural people and the ethanol manufacturers. 2nd Generation Ethanol Technology will support in achieving 10% blending of Ethanol with Petrol and thereby reducing the Oil import bill. And more importantly, reduce smog formation in future and ensure clean air for our citizens”.

10 • November 2016

At Birla Carbon, Sustainability does not mean only minimizing risks but at the same time working towards maximizing company potential.

The Sustainability approach is driven by the company’s Sustainable Operational Excellence (SOE) strategy. The Company works towards improving operating standards as well as manufacture carbon black as efficiently as possible through their SOE. This helps in minimizing the adverse impacts on natural resources and the environment and maximizes a positive impact on society without compromising on customer satisfaction. These improvements have resulted in smarter, more directed investments, revenue generation, and improvement in energy efficiency and as a result, a reduction in CO2 emissions.

Dr Santrupt Misra, Chief Executive Officer, Birla Carbon said, “The Golden Peacock award is yet another significant recognition of our continued and unwavering commitment to sustainability. We closely monitor and assess the environmental impact of our operations and work towards taking proactive steps to ensure we are the preferred supplier of choice for our customers, in addition to being the employer of choice for our employees.” He further added, “At Birla Carbon, we strive to ensure that our work is consistent with our vision to be the most respected, dynamic and sustainable global carbon black business.”

Commenting on this achievement, Joseph Gaynor, Chief Legal, Sustainability and Risk Officer, Birla Carbon said, “This award is a testimony to the innovation and pragmatic implementation of our strategy. This achievement is a major milestone in our sustainability journey, and our proactive approach towards carbon stewardship is just one example of our focused efforts in this area.”

Birla Carbon was recently conferred similar accolades by EcoVadis towards Sustainability. Basis the findings of the fourth Sustainability report, EcoVadis awarded Birla Carbon a gold rating for Sustainability.

EcoVadis recognized Birla Carbon as being part of the top 3% in its industry sector (manufacture of other non-metallic mineral products) and have also acknowledged it in the top 4% in the same category for

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18/11/2016 10:20

CEW Press Release Shell Lubricants Organizes 5th Edition of the Metals Technology Forum

Mumbai, India: Shell Lubricants has announced it held the 5th edition of its Metals Technology Forum in Mumbai. The forum was attended by leading industry experts in the metal and steel industry, to discuss the challenges faced by the lubricants industry and find solutions for the same. In addition, the forum was aimed at showcasing Shell Lubricants’ innovative technology and its holistic solutions, with a special focus on offerings for modern day steel plants.

The event witnessed over 90 participants from different metal and steel companies including Tata Sponge & Iron Steel; JSW, Bhushan Steel Limited, Kalyani Steels and Essar Steels, among others. The key trends discussed during the forum included: dynamics of increasing energy efficiency and reducing maintenance costs; the best lubricant-related operation and maintenance practices; outlook on growth of the metal and steel sector; and challenges of controlling leakages in pumps and valves.

The sessions at the technology forum were addressed by Mr. D P Deshpande, Managing Director, Tata Sponge Iron Limited; Mr. Arvind Kumar, CEO, Kaytek Solutions OU; Mr. Prashant Godbole, Sr. Manager Sales & Predictive Maintenance team, PRIMETALS Technologies; and Mr. Mukesh Dubey, Sr. Vice President – Mechanical, Kalyani Steels.

Additionally, the forum was led by Mr. Akhil Jha, Vice President – Technical, Shell Lubricants India; Mr. Ajay Agarwal, Technical Team Lead, Shell India and Mr. Umesh Dwivedi, BDM, Shell India, and was concluded with a vote of thanks by Mr. Vineet Thakar, Vice President – Sales, B2B, Shell India.

Commenting on the occasion, Mr. Akhil Jha, Vice President Technical, Shell Lubricants India said, ““The Indian metals industry is very modern and consists of state-of-the-art mills and plants. It has always strived to continuously modernize and upgrade its existing plants to achieve higher productivity levels. At Shell Lubricants, we recognize that even one breakdown or unscheduled maintenance can lead to stoppage of a steel plant, therefore resulting in significant loss of production. High-temperatures, high load and wet conditions can place significant demands on the metal processing equipment. Following the success of the first four editions of Shell Metals Technology Forum held at Bhubaneshwar, Jharsuguda, Jamshedpur and Kolkata, we have organized the 5th edition of this event in Mumbai to deliberate on the modern day lubrication challenges faced and solutions sought by the Metals & Steel industry”.

“We have received an overwhelming response from the industry, and are glad to contribute to knowledge-sharing in the sector. With this initiative, we hope to showcase our products and services; and demonstrate our expertise in the area of technological innovation, 12 • November 2016

partnerships and application. This will surely help us strengthen our ties with customers, OEMs, industry experts and other key stakeholders in the Metals & Steel Industry in India”, he further added.

Mr Arvind Kumar, CEO, Kaytek Solutions OÜ, Estonia and Director of Tech Xpert Consortium LLP said, “This forum organised by Shell Lubricants is an innovative knowledge exchange session. It brings together different companies to deliberate on technological developments, and their use in industry. It helps to disseminate knowledge in fields like lubricants that have significantly evolved in the last decade. The tangible and intangible benefits of the same are immense. The knowledge shared at this forum is a great value addition, and the platform in itself is a laudable initiative.”

Mr. Mukesh Dubey, Sr. Vice President – Mechanical, Kalyani Steels said, “Considering the competitive industry landscape, we recognise the value addition that a lubricants company like Shell Lubricants brings to the forefront, given their focus on reducing the downtime and ensuring longer equipment and oil life. As a global lubricants supplier, Shell Lubricants helps us in improving our maintenance practices by offering their technologically-advanced products and services, thereby reducing the total cost of ownership. I am very excited to be here amidst industry experts to discuss latest advancements in lubricants technology for metal sector.”

Shell Lubricants’ product portfolio for metal industry includes gear oils such as Shell Omala; bearing and circulating oils such as Shell Morlina; greases like Shell Gadus; and hydraulic fluids like Shell Tellus.

Novozymes Expands India Production Capabilities Mumbai, India: Novozymes has announced that it has obtained land in the Patalganga industrial area near Mumbai, on India’s west coast to expand its operations catering to the India and South East Asia markets.

The company plans to establish a new enzyme production and supply chain facilities and is expected to be ready for operations in 2018.

Novozymes expansion will see an initial investment of approximately DKK 300 million (` 300 crore), and will employ 150 people, in the first phase.

“We see a big opportunity in India and South-East Asia, where knowledge-based innovations in the field of industrial enzymes can effectively replace polluting chemical processes and deliver environmental sustainability,” says Thomas Videbæk, Executive Vice President & COO, Research, Innovation & Supply at Novozymes. “Our business in the region has been growing strongly for years, to a point where we have outgrown current facilities and need to expand for the future. We have chosen the new area for its size, proximity to customers, future business opportunities and good accessibility to ports, airports, highways and other industrial infrastructure.”

The new plant will produce enzymes using solid state fermentation and will also formulate enzymes imported from Novozymes’ production sites outside India. At present, the key business areas for Novozymes in India are the household care, textiles, food & beverages, oil & fats, baking, and beverage alcohol markets.

Chemical Engineering World

CEW Industry News Bayer to set up Active Agrochemicals Ingredients Plant in Vapi

Gujarat Alkalies to Set Up Chloromethanes Plant at Investment of 683 Crores Dahej, India: Gujarat Alkalies and Chemicals Ltd (GACL) has announced that it will set up a chloromethanes plant having capacity of 105,000 tonne per annum (TPA) – or 315 metric tonne per day (MTPD) – at Dahej with an investment of ` 683 crores.

“The board of directo` of the company at its meeting has approved the establishment of 105,000 TPA (315 MTPD) chloromethanes plant at Dahej with a projected project cost of ` 683 crores. The expected project completion date is 24 months from zero date,” said GACL. The company already has a chloromethanes plant at Vadodara complex with a capacity of 37,950 TPA.

Gujarat, India: Bayer has announced that it is setting up a new plant for manufacturing active ingredients (or precursors) in Vapi (Gujarat) with an investment of ` 220 crore.

“The new plant in Vapi, involving investment of $ 30 million, will focus of manufacturing active ingredients for agrochemicals. It will cater to Indian as well as overseas markets,” disclosed Richard van der Merwe, Senior Bayer Representative (South Asia) And VC & MD Of Bayer Crop Science Ltd, while inaugurating the company’s global science exhibition – titled ‘Making Science Make Sense’ – in Mumbai. The new plant in Vapi is expected to go on-stream by June 2017.

Meanwhile, GACL-Nalco Alkalies & Chemicals Pvt Ltd – a joint venture formed by GACL and National Aluminium Company Ltd (Nalco) for setting a caustic soda (or sodium hydroxide) project and a coal-based power plant (CPP) at Dahej - has reviewed its draft project report due to minor change in location of the project.

GACL has also revised the cost of this venture, which will set up an 800-TDP (266,667 metric TPA) caustic soda plant along with 130 MW CPP, to ` 1,936. 90 crores.

In addition, the board has also sanctioned the setting up of caustic pumping and transfer facility along with procurement of wagons under Liberised Wagon Investment Scheme (LWIS) of Indian Railways for transportation of caustic soda to Nalco’s Damanjodi site in Odisha at a cost of ` 62.70 crores in the JV Company. Thus, the overall project cost for this project would be ` 1999.60 crores.

New plant trails the opening of a global formulation technology laboratory at Vapi in September-2016 involving investment of $ 2 million.

In the last few years, Bayer has made deliberate investments in numerous research & development, production, and infrastructure projects in the country to encourage growth. “We have spent over $ 200 million in the last couple of years in India for acquisitions, capital investment, capacity enhancement and R&D,” stated Merwe.

Speaking about the intellectual property rights (IPRs) concern in India, he said, “If you do not protect IP, you will not get any new innovation. Companies invest only in those countries where their intellectual property is protected. We stand firmly for the protection of IP. We have not tackled any IP related issues in India in the recent past. From a policy viewpoint, we are seeing a very positive attitude being adopted by the present government towards IPR.” The company has recognized India, where it registered a turnover of about $ 489 million in 2015, as one of the key growth markets.

“We always aim to grow faster than the market. This year’s good monsoon is expected to have a very positive impact on the sales of crop protection products in the country,” said Merwe.

16 • November 2016

Alfa Laval Secures Order for Heat Exchangers worth $ 14 Million Mumbai, India: Alfa Laval has announced that it has won an order to supply Alfa Laval OLMI heat exchangers to a petrochemical plant in the Middle East. The order, booked in the energy & process segment, has a value of almost $ 14 million and delivery is scheduled for 2017.

The order comprises the deliver y of Alfa Laval OLMI heat exchangers which will be used to upsurge the yield and recover energy in the production of ethylene, an important ingredient for the manufacturing of industrial chemicals and plastics products.

“I am ver y delighted to announce this order for our OLMI heat exchangers. It proves that our product design fits both performance and reliability when working in the petrochemical industr y’s demanding applications,” said Svante Karlsson, President of the Process Technology Division in Alfa Laval, which has been present in the Middle East since 1991.

Chemical Engineering World

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CEW Industry News L&T ties up with Chiyoda Corporation for Emission Control Technology

Kribhco and Morocco’s OCP to set up Fertiliser Plant in Krishnapatanam

Mumbai, India: L a r s e n & To u b r o ( L & T ) h a s announced that it has entered into a long-term technical licence agreement with Japan’s Chiyoda Corporation for its Chiyoda Thoroughbred 121TM (CT-121TM) flue gas desulphurisation (FGD) technology.

The agreement grants L&T limited rights to under take EPC of CT-121TM FGD systems.

A n d h r a Pradesh, India: Krishak Bharati Cooperative Limited (Kribhco) a n d M o r o c c o ’s O C P h a s announced that it has formed a 50:50 joint venture fir m to d eve l o p a l a r g e - s c a l e G r e e n f i e l d N P K fe r t i l i s e r p l a n t i n Krishnapatanam, Andhra Pradesh.

As per the announcement of Ministry of Environment, Forest and Climate Change (MoEFCC) issued in December 2015, new limits on sulphur dioxide (SO2) emissions has been presented for coal-based thermal power plants in India. The move, which makes Indian emission norms among the most severe in the world, has called for compulsory installation of FGD systems in upcoming power plants, comprising those currently under construction and many that are at present operational.

“As a responsible cor porate citizen, L&T is dedicated to covering emissions and has always conformed to the relevant government norms. The agreement with Chiyoda Corporation is yet another major step in that direction,” said Shailendra Roy, CEO & MD, L&T Power and whole-time director (power, heavy engineering & defence), L&T. Ryosuke Shimizu, Director & Senior Vice President (Technology Development, Investment & Project Operations), Chiyoda Corporation, added, “We are very happy to contribute to India’s development of energy and environment in concord with our own technology.”

T h e C T- 1 2 1 T M F G D p r o c e s s i s a d i s t i n c t i ve t e c h n o l o g y developed by Chiyoda in which sulphur dioxide is captivated from flue gas generated by coal-fired, oil-fired and other types of boilers and removed as gypsum. Unlike conventional processes in which the re-agent slurry is sprayed on flue gas, the CT-121TM process uses Chiyoda’s unique absorber, the Jet Bubbling Reactor (JBR), in which the flue gas is blown into the reagent slurry, forming a fine bubble bed where SO2 is absorbed, oxidised by injected air, and then neutralised by ground limestone slurry.

This technology is extremely proficient, facilitating low-cost removal of flue gas SO2. Fur thermore, it safeguards that the plant remains compact and easy to maintain.

18 • November 2016

The plant, to be built with a preliminary investment of nearly $ 230 million, will have an annual production capacity of 1.2 million tonne (MT) of NPK fer tilisers. Moreover, the project also comprises the development of logistical infrastructure in the region.

“Planned JV is a distinctive example of global cooperation b e t w e e n t w o p r o m i n e n t o r g a n i s a t i o n s j o i n i n g h a n d s fo r making available phosphate based fer tiliser products to Indian farmers by channelizing their relevant strengths. Farmers of the country shall benefit with continual supply of several NPK grade products based on best quality phosphate in the world,” said Dr Chandra Pal Singh, Chairman, Kribhco.

Fer tilisers are one of 25 core sectors recognised for Make in India campaign by the Government of India. The JV will provide quality home-grown NPK fer tilisers to Indian farmers by leveraging on Kribhco’s deep knowledge of market and farmers requirement, as well as OCP’s world-class industrial competences and exper tise.

Mostafa Terrab, chairman and CEO, OCP, stated, “OCP has always been, and remains fully dedicated to contribute to India’s agricultural development. We believe large scale local investments designed to respond to farmer’s specific needs is the crucial ingredient to successful agricultural ecosystem development. As one of the major cooperatives in India, Kribhco is a brilliant par tner to develop a far mer-oriented agricultural input joint venture. This par tnership is designed to be truly a win-win project for all the stakeholders involved but foremost for India’s agriculture and principally for Indian farmers.”

OCP-Kribhco joint-venture is anticipated to be the first step in a wider strategic cooperation between both groups that could include Kribhco’s investment in a phosphoric acid unit in Morocco.

Chemical Engineering World

CEW Industry News RIL’s Petrochemicals Unit Records Revenue of $ 331 billion in Q2 FY17

Thirumalai Chemicals to expand its business in India and Malaysia

Mumbai, India: Reliance Industries Ltd (RIL) has announced that growth in volumes in refining, petrochemical and retail businesses has helped the company to register healthy growth in revenue during the second quarter (Q2) of 2016-17. The company has logged a turnover of 81,651 crore in Q2 2016-17, a growth of 9.6 per cent, as compared to 74,490 crore in the corresponding period of the previous year.

Mumbai, India: Thirumalai Chemicals Ltd (TCL) has announced that it will boost the capacity of phthalic anhydride and fine chemicals in India, while its Malaysian arm - Optimistic Organic Sdn Bhd (OOSB) - will set up food ingredients and fine chemicals plants. The decisions on plant upgradation were taken in the board meeting.

RIL’s profit after tax (without exceptional items) was up by 43.1 per cent at ` 7,206 crore as against 5,035 crore in the corresponding period of the previous year.

The company’s petrochemicals business revenue for 2Q FY17 registered year-on-year (YoY) growth of 5.6 per cent to 22,422 crore, largely due to rise in volumes of fibre intermediates and polyester products. Petrochemicals segment EBIT was at a record level of 3,417 crore, supported by strong volume growth and firm margin environment. Robust demand growth during 2Q FY17 across polyester products (+14 per cent) and polymer products (+10 per cent) underpinned segment earnings.

Petrochemicals segment EBIT margins expanded to a 14 quarter high of 15.2 per cent during 2Q FY17 as product deltas held up well despite lower prices.

According to the company, the domestic market for polymers continued to witness a healthy growth rate. During 1H FY17, domestic polymer demand was higher by 11 per cent YoY. PVC demand witnessed the highest growth rate of 20 per cent among all polymers; driven by strong off-take from downstream converters PP demand was higher by 7 per cent aided by good demand from raffia packaging, non-woven, and fibre filament and appliances sector. PE demand witnessed a growth rate of 8 per cent driven by firm demand from flexible packaging and moulded products.

RIL’s polymer production was up by 3 per cent to 2.3 million metric tonne (MMT).

Domestic polyester markets witnessed a robust demand growth of 14 per cent YoY during 2Q FY17. While polyester filament yarn lifting were healthy for grey and finished fabrics during the quarter, PET demand witnessed surge of 28 per cent YoY on account of higher beverage consumption. However, heavy rains in many parts of India capped the rise in beverage demand. In the first half of FY17, the demand for polyester products grew by 6 per cent.

According to Reliance Industries, its PTA and PET plants witnessed higher operating rates as water quality issues at Dahej were resolved, resulting in higher polyester chain output. Reliance fibre intermediate production in 2Q FY 17 increased 19 per cent YoY to 1.76 MMT while polyester production output gained 9 per cent to 0.6 MMT. 20 • November 2016

The company is already accomplishing an upgradation project, which is approaching completion, for its fine chemicals and food ingredients units. This will add about 40 per cent capacity by Q4 of the current year in these divisions.

The board sanctioned the upgradation of its phthalic anhydride plants with innovative technology, which will be completed in FY18. Thirumalai Chemicals will also develop its fine chemicals capacities by a further 40 per cent in FY18 to meet the increasing demand for this product. All these projects will be funded internally.

Solvay to enhance Sulfone Polymer Capacity in India Mumbai, India: Solvay has announced that it is planning to expand capacity of its plant in India as part of its plan to increase the global production of its high-perfor mance sulfone polymers.

“The company anticipates to increase global production capacity for its high-performance sulfone polymers by more than 35 per cent over the next five years through substantial investments and process optimisations at facilities in the US and Asia,” said Solvay.

While the company’s sulfone polymers facility in Asia is located at Panoli (Gujarat), its production site in the US is based at Marietta (Ohio). In addition to producing sulfone polymers at these facilities, Solvay is back-integrated, producing sulfone monomer at Panoli as well as its plant in Augusta (Georgia, USA), to ensure security of supply for its customers in fastgrowing markets.

“Solvay is the instituting innovator of sulfone polymers with the introduction of Udel PSU more than 50 years ago. We take great pride in our legacy and leadership position and, today, we are dedicated to endure investing in our production with the aim of meeting growing industry demand and better serving our customers worldwide,” said Augusto Di Donfrancesco, President of Solvay’s specialty polymers global business unit.

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CEW Industry News Evonik to buy Metabolic Explorer’s Methionine Technology

BASF to Increase Global Plastic Additives Capacity with an Investment of $ 200 Million

Mumbai, India: Evonik has announced that it is eyeing to buy the methionine technology of Metabolic Explorer (Metex). Evonik has submitted a requisite offer for this to Metabolic Explorer. It comprises the takeover of Metex’s complete methionine technology containing patents, essential bacteria strains and the inoLa brand.

Mumbai, India: BASF has announced its plans to invest globally more than $ 200 million in its plastic additives business, nearly half of which in Asia, in the next five years for capacity expansions and operational excellence.

The Metex Board of Directors, in its meeting has agreed to deliberate on this offer from Evonik and consequently decided to consult the company’s Workers Council. This consultation process is expected to last between 15 and 60 days maximum.

Metabolic Explorer has flourished in developing a fermentation process for manufacturing methionine, which is one of the key amino acids that are used in feed additives and are imperative pillar in sustainable animal nutrition.

With more than 60 years of experience in the production of essential amino acids, Evonik offers solutions for efficient and sustainable animal nutrition to customers in more than a hundred countries around the world. Acquisition of Metex’s methionine technology is estimated to help the German chemical company to further reinforce its position in the global animal nutrition market.

Gulf Oil Lubricants’ Chennai Plant to star t production in Oct 2017 Chennai, India: Gulf Oil Lubricants India Ltd has announced its plans to start commercial production at the under-construction Chennai plant by the end of second quarter (Q2) next year. “The project is on schedule and we hope to start commercial production sometime by the end of second quarter (Q2) or early third quarter next year,” revealed Manish Kumar Gangwal, Chief Financial Officer, Gulf Oil India Lubricants Ltd, during a conference call with investors.

In May this year, the company shepherded ground-breaking ceremony for its second plant in India at Ennore (Chennai) having a capacity of around 40,000-50,000 kilo litre (KL). At present, Gulf Oil manufactures lubricants at its Silvassa facility – the capacity of which has been increased from 75,000 kilo litre (KL) to 90,000 KL recently.

The construction and PEB (pre-engineered buildings) work contact has already been awarded for the Chennai plant and the full scale construction work is currently on-going. Chennai, being a major auto hub with snowballing presence of several OEMs, Gulf Oil expects to expand its strategic presence in South India and also develop cost benefits from this new plant.

“The commissioning on Chennai plant, which will serve South India market, will evidently have some freight savings, etc,” quantified Gangwal.

22 • November 2016

Plastic additives improve product properties such as scratch resistance or light stability, and enhance plastics manufacturing processes.

“BASF will reinforce its plastic additives business with investments in additional capacities to meet increasing global demand for antioxidants, as well as light stabilisers. Moreover, we will invest in digital processes and technology to support our customers as a trustworthy supplier in all regions,” said Dr. Christian Fischer, President, BASF Performance Chemicals division.

The planned set of measures focuses on capacity expansions at sites in North America and Europe as well as investments in automation, digital technologies and modelling. In addition, BASF plans to strengthen its plastic additives production footprint in Asia.

Meanwhile, the company has publicized plans to invest in its plastic additives operations in Kaisten (Switzerland) by focus on automation, digital technologies and modelling, thus considerably increasing the capacity of the plant. Kaisten will also be the global competence center and the European technical center for BASF’s plastic additives.

I G Pe t ro ch e m i c a l s A c q u i r e s M y s o r e Pe t ro Chemicals’ Maleic Anhydride Business Mumbai, India: IG Petrochemicals Ltd has announced that it has acquired the maleic anhydride (MA) business of Mysore Petro Chemicals Ltd for 74.48 crores.

“The board of directors of the company decided to purchase from Mysore Petro Chemicals Ltd (part of the same promoter group & a related party) its maleic anhydride business comprising all the assets and liabilities in relation to its MA business situated at Taloja (Maharashtra) as a going concern on a slump sale basis at a lumpsum consideration of 74.48 crores payable in one or more tranches subject to closing date adjustments,” said IG Petrochemicals.

MPCL said, “The board of directors deliberated the viability of enduring its operations which is predominantly governed by the shortage of raw materials have decided to sell the MA business to IGPL.” MA business of MPCL registered revenue of 23.29 crores (about 95.87 per cent of total turnover) in 2015-16. Two companies anticipate concluding the anticipated transaction by April 1, 2017.

Chemical Engineering World

CEW Industry News LANXESS raises Guidance for 2016 after strong Q3 Cologne, Germany: Following a strong third quarter, LANXESS has announced that it has raised its earnings guidance for 2016. It now expects to achieve EBITDA pre-exceptional within a corridor of $ 960 million and $ 1,000 million. Previously, LANXESS had assumed earnings of between $ 930 million and $ 970 million.

EBITDA pre-exceptional for the third quarter of 2016 rose by 9.4 per cent to $ 257 million, compared with $ 235 million a year earlier. The EBITDA margin pre-exceptional improved year-onyear from 12.0 per cent to 13.4 per cent. As in the preceding three-month period, the good overall earnings performance was due especially to the strong operational development of the “new” LANXESS segments – Advanced Intermediates, Performance Chemicals and High Performance Materials – and to improved cost structures.

“We took the momentum from the first half of the year into the third quarter and delivered renewed proof of the operational strength of “new” LANXESS. We are therefore again raising our guidance for the full year,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG. The company is anticipating a normal seasonal business pattern in the final quarter of 2016.

In other words, performance will be slightly subdued compared with the preceding quarters.

The good business development in the third quarter was also reflected in net income, which increased by 51.2 per cent to $ 62 million from $ 41 million the previous year. Earnings per share were $ 0.68, after $ 0.45 a year earlier.

Group sales declined by a slight 1.6 per cent in the third quarter of 2016 to $ 1.92 billion, compared with $ 1.95 billion in the same period in 2015. Higher volumes in all segments nearly compensated for the lower selling prices resulting from raw material prices.

Advancing on the path of growth LANXESS continued its path of growth in the third quarter as well. On August 31, 2016, it successfully closed the acquisition of the Clean and Disinfect business of U.S-based company Chemours. At the end of September, LANXESS then announced the next milestone with the planned acquisition of U.S-based chemical company Chemtura, thus positioning itself as a leading supplier of additives. Several working groups have now star ted planning the integration process. The transaction still needs to be approved by Chemtura’s shareholders and the relevant antitrust authorities and is subject to the standard conditions applying to such transactions. Closing is expected around mid-2017.

Net financial liabilities remain at a low level At the end of the third quarter, net financial liabilities were virtually unchanged at a low level, despite payment for the acquisition of the 24 • November 2016

Chemours business, and amounted to $ 203 million. Net Debt was substantially reduced by, in particular, the payment of $ 1.2 billion received by LANXESS in April 2016 from Saudi Aramco for its 50-per cent share in the ARLANXEO joint venture. At the end of 2015, LANXESS still had net financial liabilities of around $ 1.2 billion.

Margins improved in all segments In the Advanced Intermediates segment, sales decreased by 1.1 per cent from $ 440 million to $ 435 million. EBITDA pre-exceptional stood at $ 83 million, 9.2 per cent higher than the prior-year figure of $ 76 million. In the Advanced Industrial Intermediates business unit particularly, sales volumes increased on account of good demand in almost all end markets. In the Saltigo business unit, demand for Saltidin – the active ingredient for insect repellents – was one of the factors which compensated for weaker demand for agrochemicals. The EBITDA margin pre-exceptional of 19.1 per cent was significantly above the prior-year figure of 17.3 per cent.

The Performance Chemicals segment posted a year-on-year increase in sales of 3.2 per cent, from $ 524 million to $ 541 million. Alongside higher sales volumes, the Clean and Disinfect business acquired from Chemours at the end of August was one of the factors in this performance. EBITDA pre-exceptional increased by 5.8 per cent to $ 91 million, compared with $ 86 million a year earlier. In particular, higher sales volumes in almost all business units contributed to the improvement in earnings. The EBITDA margin pre-exceptional increased slightly from 16.4 per cent to 16.8 per cent.

Sales in the High Performance Materials segment declined slightly by 2.3 per cent to $ 257 million from $ 263 million in the prioryear quarter. Increased sales volumes almost compensated for the lower selling prices resulting from raw material costs. EBITDA pre-exceptional increased by a substantial 31.3 per cent to $ 42 million, compared with $ 32 million in the third quarter of 2015.

Higher sales volumes in more profitable product groups and improved capacity utilization resulted in this positive earnings performance. The EBITDA margin pre-exceptional of 16.3 per cent was significantly above the figure of 12.2 per cent posted in the prior-year quarter.

Sales in the ARLANXEO segment decreased by 5.3 per cent to $ 675 million, compared with $ 713 million a year earlier. In particular, good demand from the automotive segment in Asia resulted in higher sales volumes. However, these were unable to offset the price decline resulting from raw material costs. EBITDA pre-exceptional stood at $ 91 million, just 3.2 per cent lower than the prior-year figure of $ 94 million. Higher volumes and improved capacity utilization counteracted the impact of continuing price pressure. The EBITDA margin pre-exceptional improved slightly to 13.5 per cent, compared with 13.2 per cent in the prior-year period.

Chemical Engineering World

CEW Technology News FA RO ® L a u n c h e s Po i n t S e n s e 1 7 . 5 w i t h N ew To o l s

Siemens to Expand its Digital Industrial Leadership with Acquisition of Mentor Graphics

Lake Mary, USA: FARO® has announced the release of PointSense 17.5, providing powerful new tools for extracting and aligning building and plant features from point cloud data inside Revit® and AutoCAD®.

Berlin, Germany : Siemens is further building its Vision 2020 to shape Digital Industrial Enterprise by expanding its unique portfolio for industrial software. Siemens and Mentor Graphics has announced that they have entered into a merger agreement under which Siemens will acquire Mentor for $37.25 per share in cash, which represents an enterprise value of $4.5 billion.

The offer price represents a 21% premium to Mentor’s closing price on November 11, 2016, the last trading day prior to the announcement. Mentor’s Board of Directors approved and declared advisable the merger agreement, and Mentor’s Board of Directors recommends the approval and adoption of the merger agreement by the holders of shares of Mentor common stock. Mentor shareholder Elliott Management has committed to support the transaction.

PointSense 17.5 for AutoCAD® provides more customized tools for the extraction of building components, such as walls, windows and doors. After extracting the building components, architects benefit from new alignment tools that dramatically speed up the process of delivering 2D plans from 3D point clouds.

In addition to these new features for architects, industrial facility designers also benefit from new functions for creating 3D plant models. One of the several new features is an automated cylinder extraction tool, which reduces time and simplifies 3D modeling of piping from point clouds.

Besides new tools in PointSense for AutoCAD®, PointSense 17.5 for Revit® also speeds up workflows with a new toolset for pipe modeling and a new visualization tool that shows the user only the relevant parts of the scan project that they are interested in.

“With the new pipe modeling and visualization tools in PointSense for Revit® and the advanced functionality for architects in PointSense for AutoCAD®, customers will see a dramatic increase in their daily efficiency,“ stated Joe Arezone, FARO's Chief Commercial Officer. “MEP engineers can work directly inside Revit®, without having to use third party software tools for pipe documentation, and architects will benefit from faster alignment workflows.”

• Development

by others of new or improved products, processes or technologies that make the Company’s products less competitive or obsolete;

• The

Company’s inability to maintain its technological advantage by developing new products and enhancing its existing products;

•

Declines or other adverse changes, or lack of improvement, in industries that the Company serves or the domestic and international economies in the regions of the world where the Company operates and other

general economic, business, and financial conditions; and

• Other risks detailed in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

28 • November 2016

T h i s a c q u i s i t i o n d e c i s i ve l y ex t e n d s S i e m e n s ' l e a d i n g Digital Enter pr ise Software por tfolio with Mentor’s well established electronics IC and systems design, simulation and manufacturing solutions. These capabilities are essential for today's smart connected products such as autonomous vehicles. The combination provides mechanical, ther mal, electronic and embedded software tools which will allow Siemens' customers to fur ther accelerate their innovation, drive production efficiencies and optimize the operation of their products in the field. Now, for the first time, quality, efficiency, flexibility, safety and speed can be optimized across technical domains, throughout the entire lifecycle and for the entire extended enterprise.

“Siemens is acquiring Mentor as part of its Vision 2020 concept to be the Benchmark for the New Industrial Age. It’s a perfect portfolio fit to further expand our digital leadership and set the pace in the industry,” said Joe Kaeser, President and CEO of Siemens AG. “With Mentor, we’re acquiring an established technology leader with a talented employee base that will allow us to supplement our world-class industrial software portfolio. It will complement our strong offering in mechanics and software with design, test and simulation of electrical and electronic systems,” said Klaus Helmrich, member of the Managing Board of Siemens.

“Combining Mentor’s technology leadership and deep customer relationships with Siemens’ global scale and resources will better enable us to ser ve the growing needs of our customers, and unlock additional significant opportunities for our employees,” said Walden C. Rhines, chairman and CEO of Mentor. “Siemens is an ideal partner with financial depth and stability, and their resources and additional investment will allow us to innovate even faster and accelerate our vision of Chemical Engineering World

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CEW Features Technical Article

Brewing Sustainable Growth The Indian chemical industry accounts for about 3 per cent of the global chemical industry and is estimated to grow at 11 per cent per annum to touch $224 billion by next year i.e. 2017. However to accomplish this, spending on R&D must increase from the current 0.5 per cent of sales and move closer to the global benchmark of 4 per cent of sales. This roughly translates to about $12 billion in R&D spends over the year.

Lack of availability of skilled manpower is another concern that needs to be addressed. With adequate infrastructure put in place to impart vocational training the employment potential of the chemical sector could grow to 8-9 million over 15 years.

W

ith an estimated size of $139 billion, India is the worlds seventh largest and Asia’s third largest producer of chemicals. The country is estimated to produce 23.9 million tons of chemicals including petrochemicals and 9 million tons of polymers in 20152016. Chemical products acts as a key enabler in several industries such as in tanneries, farming, and construction besides several products that is essential in daily life, such as Salt, Soap, and toothpaste for instance. From plastic furniture to synthetic garments and even the medicines we consume, the chemicals industry plays a huge role in our lives and is critical for the economic development of any country.

Growing domestic demand and increasing demand from agriculture sectors offers huge potential for future growth in the chemicals sector in India. Rapid industrialization boosted in part by the government’s campaign of ‘Make in India’ will further lead to an increase in demand for sectoral production. To fulfill rising demand and fuel growth, the chemicals sectors must embark on a capacity expansion in production.

New and bigger chemical plants need to be set up and existing plants invest in latest technology and equipment to gain maximum benefit out of an increasing demand. Notably the 12th Five year plan has allocated approximately $167 million for the development of the process 30 • November 2016

plant equipment market in India and the government’s National manufacturing policy for increasing the contribution of the manufacturing sector to the national GDP is opening up the market for equipment manufacturers.

challenges to the industry. The growth of the chemical industry is interlinked with growth in the downstream industries, a downturn or stagnation in the downstream industry has a cascading effect on the chemical industry.

With the increase in manufacturing activity the demand for specialty chemicals would also grow in tandem with the growth in the sector. And as the search continues for a more efficient, cost effective and durable materials to support manufacturing, specialty chemicals will see itself put to a more varied and innovative uses.

Such as in enhancing the quality and affordability of different types of plastic components used in manufacturing or in developing better quality paints and coating materials. Another sector that will drive the growth of specialty chemicals is the personal care industry. With growing affluence the demand for cosmetic chemicals, polymers and oleo chemicals for use as a healthcare and hygiene product is increasing and is expected to grow at a rapid pace, out pacing all other segments in the sector.

The Indian chemical industry accounts for about 3 per cent of the global chemical industry and is projected to grow at 11 per cent per annum to touch $224 billion by next year i.e. 2017. However to achieve this, spending on R&D must increase from the current 0.5 per cent of sales and move closer to the global benchmark of 4 per cent of sales. This roughly translates to about $12 billion in R&D spends over the year. Lack of availability of skilled manpower is another concern that needs to be addressed. With adequate infrastructure put in place to impart vocational training the employment potential of the chemical sector could grow to 8-9 million over 15 years.

The chemical industry has key linkages with several downstream industries such as automotive, consumer durables, engineering, and food processing to name a few. And with the world moving in the direction of a linked economy due to globalization, this has caused several

For the Indian chemical industry to be firmly put on the growth path there needs to be in place a clearly defined vision that is backed by a strategic roadmap to achieve the vision. Failure to do so would effectively obliterate any advantage we currently enjoy such as a large technical talent pool, as manufacturing would simply move outside the country. Focus on growth and careful planning for the chemical sector will help us become more competitive globally and promote sustained economic growth.

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CEW Features The government must also play a more proactive role and initiate key initiatives such as improve infrastructural support including provision of adequate power and water to support the industry. There is a general inadequacy with regards to safe transportation and proper storage.

All avenues must be explored to improve roads, railways, warehouse, ports etc.

Ensuring feedstock availability, support for capital intensive technologies, technology up-gradation and ensuring policy stability are some of the ways in which the government can support the growth of the industry.

The industry also operates in a fragmented manner which is not conducive for sustaining high levels of growth. As such the industry can look at consolidation to be able to optimize operations and enjoy the benefits of economies of scale. Entering into JV’s or acquiring foreign firms must also be explored to gain access to technical know-how and improve capabilities in R&D. Setting up close collaboration with downstream industries to understand their requirements and gather inputs for products innovation are a good way to develop relevant and effective products and as per industry requirements.

The chemical industry has a great role to play in improving the quality of life as it touches every aspect of our lives, right from the food that we eat and the clothes we wear to the various transport options we use to commute. Developing a sustainable, green solution to address scarcity of potable water, food processing and delivering innovations to tackle new and emerging health issues are some of the key challenges faced by the chemicals industry today.

Asia had emerged as a significant contributor to the global chemical industry, contributing as much as 45 per cent way back in 2009. Within Asia, India emerged as a lucrative destination 32 • November 2016

for global chemical companies with its high potential for growth. Currently with an estimated sixe of around $108 billion, the Indian chemical industry represents roughly 7 per cent of the nation’s GDP and accounts for about 11 per cent in the overall index of industrial production (IIP). Despite the significant size of the industry and contribution to GDP, the share of the Indian chemical industry in national exports stands around 11 per cent and represents a measly 3 per cent of the global chemical industry.

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India has taken several initiatives to promote the manufacturing sector and policy interventions are being made with the sole objective of improving the ease of doing business in the country. The ‘make in India’ initiative, relaxation in FDI norms and the recent overhaul of the taxation regime through the introduction of the GST etc are some notable policy initiatives towards that end. With manufacturing being one of the key sectors in focus to drive a sustained economic growth, the chemicals industry presents an unique opportunity for quick scalable growth, both as an industry and as a market for upstream industries engaged in manufacturing tools and equipments used in the chemicals industry.

For Details Contact

Jasubhai Media Pvt. Ltd.

Authors’ Details Mr. Ravi S Jalan Managing Director GHCL Limited

Taj Building, 3rd Floor, 210 Dr D N Road Fort, Mumbai - 400 001 Tel: 022-4037 3636, Fax: 022-4037 3635 Email: industrialmags@jasubhai.com

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CEW Features Technical Article

How Predictive Analytics Maximises Operational Excellence Today the terms, Industry 4.0 and the Internet of Things (IoT) are widely discussed across the engineering and manufacturing space, including ‘cloud’, ‘big data’. They all have a place to radically automate manufacturing, but they need to be clearly understood and positioned in context with the manufacturer’s operational and commercial objectives. The article aims to de-mystify buzz-terms that clutter the space and elucidate how best-practice manufacturing executions systems (MES) integrate the operation, using real-time business performance management to optimally control, analyse, monitor and respond to change immediately across all time horizons. Greater predictability in production outcomes means greater profitability.

M

odern manufacturing is an ecosystem of interconnected software and hardware that helps refineries; chemical and petrochemical companies optimise plants and achieve operational excellence. As businesses generate vast amounts of data, efficient decision support solutions are needed to make sense of vital information and ensure operations can adapt quickly to dynamic conditions.

Today the terms, Industry 4.0 and the Internet of Things (IoT) are widely discussed across the engineering and manufacturing space, including ‘cloud’, ‘big data’. They all have a place to radically automate manufacturing, but they need to be clearly understood and positioned in context with the manufacturer’s operational and commercial objectives.

Achieving Integration Intelligent solutions deliver intelligent operational and business outcomes.

The IoT is a term often used to describe automated decision support that is an integrated communications landscape, enabling manufacturers to take predictive decisions based upon models that achieve faster operational efficiencies and deliver greater productivity. Bridging the gap between plant operations and commercial transactions using the latest digital innovations will optimise decision

34 • November 2016

support at the plant floor level through to the executive boardroom.

A recently published ARC Insights report highlighted, “The potential of the Industrial Internet of Things (IIoT) to transform production operations is one of the hottest current topics in manufacturing. Along with related initiatives, such as Industrie 4.0, IT/OT convergence, and Smart Manufacturing, the IIoT is cited as an approach to make manufacturing production more flexible, cost effective, and responsive to changes in customer demand.”

The term industry 4.0, often described as the fourth industrial revolution, is a collective term embracing a number of contemporary automation, data exchange and manufacturing technologies. Not only are manufacturers besieged with a plethora of industry terms, but also vast volumes of information generated from various sources, including diverse automation systems, such as DCS, PLCs, MES, CPM, ERP, WMS, PIMS, DMS, LIMS, QMS, batch management systems and historians. The capture and collection of data is a major issue for manufacturers because they can be accumulated into disparate forms ranging from spreadsheets and reports to numerous custom applications and systems. Without effective visualisation and analysis tools, employees

face evaluating hundreds of static spreadsheets or reports rather than making business-critical decisions based on timely information. However, modern analytics are delivering new capabilities that enable deeper and richer analyses.

From monitoring processes to dealing with process upsets, operators, engineers and subject matter experts can gain speedy access to vital information to keep production running smoothly.

Addressing Root Causes If staff have a myopic view of plant behaviour then it is difficult for them to respond quickly to operational issues. Hence, reducing the time spent investigating root causes of plant problems releases operators to spend more time analysing data to make more informed decisions about plant performance. The intelligence gathered from such analyses opens up opportunities to optimise the operation and maximise profitability at key production stages. Manufacturers adopting best practices typically manage their operations utilising realtime data and can distribute, visualise and analyse information intelligently to operate plants profitably. Manufacturing execution systems (MES) fulfil this need, enabling process manufacturers to quickly identify manufacturing performance problems, assess root causes and take corrective actions.

Chemical Engineering World

CEW Features A recent report on Market Guide for Manufacturing Execution System Software by Gartner highlighted “There will increasingly be more pressure on the MES vendor community to provide tools for analyzing massive amounts of data, as well as to provide predictive technologies for helping manufacturers make better decisions based on the data they are capturing.”

The latest software technology creates an ideal environment to enable companies to optimise each of the key areas of the production process, whilst interacting dynamically to meet commercial and operational goals. Many companies have adopted integrated MES software platforms to become proficient faster, bringing the power of optimisation to more people in engineering, operations, planning and scheduling across the enterprise. As a result, manufacturers are better able to increase capacity, improve margins, reduce costs and become more energy-efficient. The integrated suite of tools helps stakeholders to collaborate and look across an organisation to make the necessary decisions to respond, take corrective actions in real-time and execute in synchronisation with the overall integrated plan. In addition, the software allows decision-makers to perform such actions either in-plant or via HTML-5 technology enabled mobile devices. Essentially, HTML-5 is a markup language used for structuring and presenting content on the Internet and supports the latest multimedia platforms, while making it easily readable by users with current web browsers on compatible computers and devices. Crucially, the power of software applications equips staff with easy-to-use tools that present data in context and in an easy-tounderstand manner.

Data analytics software automatically identifies and adjusts manufacturing production processes whilst monitoring for discrepancies in model fidelity and helps operators improve efficiency.

36 • November 2016

Many leading companies have adopted AspenTech’s aspenONE MES software solutions to increase profitability, reduce variability and improve overall asset utilisation. The data management capabilities within aspenONE MES collect and organise process data across disparate systems and distribute it across the enterprise to make it easy to optimise data value. The aspenONE MES data foundation collects and stores large volumes of real-time and historical data from process control, manufacturing operations, laboratory systems.

Additionally, connecting production data with business systems forms the foundation for an enterpriselevel analysis and decision support platform. Rich calculations, analytic and visualisation tools unlock the data’s value, allowing operators to compare performance across a range of assets and disseminate best practices to processes and sites that require improvement.

AspenONE Process Explorer is the intelligent solution to access, visualise, analyse and monitor plant operations data. It provides secure access from any device connected to the network without the need for client-side add-ins or software installation. With aspenONE Process Explorer users can choose between desktop, laptop, tablets and smartphones, so they are always in touch with their production data, anytime and anywhere. More companies are embracing web-based technology because of its zero install footprint, multi-platform support that comes with HTML-5 and intuitive user interface.

Predictive Analytics Optimises Profitability In today’s technological landscape of 4.0 and IoT, advanced tools dramatically improve predictive analytics based upon models that support faster and better decisions to optimally plan, schedule, control and execute products to the highest standard. MES provides the tools that enable companies to

reduce variability and improve asset effectiveness.

Smart manufacturing is a system of integrated modern technology and process methodology that makes production more efficient, adaptable, cost-effective and responsive to changes in economic conditions. Establishing a centre of operational excellence also improves communications and brings planning, scheduling and operational execution closer together. Those refineries, chemical and petrochemical companies that adopt best practices and use cohesive MES software tools can achieve a fully-integrated operation.

With improved data analytics, key stakeholders can add immediate value and make more informed decisions quicker to drive increased productivity.

The process world is rapidly becoming more competitive. The key driver for forward-thinking manufacturers is to empower stakeholders with specialist MES tools to enable them to achieve operational excellence. The payback can be seen within six months and with greater predictability comes greater profits.

Authors’ Details Dr. Warren Becraft Senior Principal Business Consultant AspenTech Robert Golightly Product Marketing AspenTech

Chemical Engineering World

CEW Features Technical Article

Sizing and Selecting the Proper Metering Pump In process application, large amounts of chemicals are used during daily operations and the volumes of chemicals are large and very precise, with exact amounts delivered according to strict injection schedules.

Thus the pressures - from very high to very low – for injecting the chemicals should be governed precisely.

Metering pumps have—whether mechanically, hydraulically or electronically actuated—raised to the fore as a technology of first choice for the injection of chemicals in processing and agricultural applications, but within the realm of metering pumps there are many different styles and modes of operation. The article explains the different metering-pump technologies and illustrates how the user should select the proper size and style depending on the injection application for which the pump will be tasked.

A

typical process application can consume large amounts of chemicals during daily operations.

While the volumes may be large, though, they must also be very precise, with exact amounts delivered according to strict injection schedules. The pressures—from very high to very low—that the chemicals are injected at must also be governed precisely. This demand for precise flow rates at predetermined schedules and pressures requires the use of a very specific pumping technology, one that can ensure successful, reliable adherence to the injection schedule and fluid volumes.

Metering pumps have—whether mechanically, hydraulically or electronically actuated—risen to the fore as a technology of first choice for the injection of chemicals in processing and agricultural applications. Today’s metering-pump technology can be easily set to deliver exact volumes according to a set schedule, and at varying pressures.

But within the realm of metering pumps there are many different styles and modes of operation.

Know the Variables When determining which metering pump is the best option for a chemicalinjection application there are a number of variables that must be taken into consideration, including:

40 • November 2016

• Flow Rate: Metering pumps should never be oversized, meaning that determining the exact flow rate that is required for the application is of paramount importance. With that in mind, a metering pump should be sized so that the maximum expected flow rate is 85 to 90 per cent of the pump’s capacity, which will leave room for additional capacity, if needed.

• Materials of Construction: Metering pumps are available in a variety of materials, most commonly 316 stainless steel, C-20 stainless steel, PVC and Kynar PVDF. When selecting a metering pump’s materials of construction, the corrosion, erosion and solvent action of the chemical must be taken into consideration. For example, solvent-based chemicals may dissolve plastic-headed pumps, while acids and caustics may require stainless-steel models. The effects of erosion must also be considered when the chemical takes the form of abrasive slurry.

• Chemical Makeup: Chemicals come in many formulations, from extremely thin to highly viscous, while they can also be classified as a slurry or off-gas when transferred. Standard metering pumps are typically able to handle clear liquids with viscosities ranging from water-like to 1,500 cPs. Chemicals with viscosities that approach 5,000 cPs or have light

suspensions will require special liquid ends. Those with viscosities up to 20,000 cPs or that contain up to 10 per cent solids will require special diaphragms, while ones that automatically vent accumulated gas will need their own variety of liquid ends.

• Driver: Drivers, which can be powered by electricity, water, gas, air or the sun, must be selected according to the utilities that are available. Driver selection must also take into account any environmental hazards that may be found in the operating area, with the operator realising that pumps used in remote locations may not be able to be inspected as often as those in controlled environments.

• Environment: Determine if the pump will be operating indoors or outdoors.

If used outdoors, the pump must be sheltered from direct sunlight. Any pumps that will be used in freezing temperatures can only pump fluids that will not freeze at that temperature.

• Method of Control: The operator must know how the pump will be used, either manual continuous operation, on/off operation of operation that is governed by a process signal.

When all is said and done, method of control may be the most important variable when choosing a metering Chemical Engineering World

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CEW Features Metering pumps have long set the standard in chemical-injection applications, but only if the operator selects a model that addresses all of the many operational variables. pump, so let’s take a closer look. Many styles of metering pumps allow their flow rate to be adjusted manually through the use of a micrometer dial. Adjusting this dial changes the pump’s stroke length and allows the pump to be operated anywhere between 10 per cent and 100 per cent of its rated flow capacity.

Metering pumps with micrometer dials may also feature a variable speed drive that allows adjustment of the pump’s stroke speed. Utilising the two in unison can allow additional adjustability or turndown capabilities over the range of the drive, depending on the pump’s stroking speed. For example, a pump operating at 75 strokes per minute (spm) would produce a 5:1 turndown ratio on speed with the variable speed drive and a 10:1 turndown ratio on stroke length via the micrometer dial.

Flow rates can also be controlled automatically by a process signal and through the implementation of electric or pneumatic positioners that can adjust the stroke length, which will deliver a full 10:1 turndown ratio. In this method of control, the number of doses will remain constant with the size of each dose reduced, resulting in doses that are uniformly distributed in a constantly flowing line.

the timing of each stroke from start to finish is uniform at every stroking speed.

Planning a Metering-Pump Installation So now that all of the variables have been identified and reviewed, it’s time to design the pumping system, keeping in mind any location or environmental concerns that may be present. For best results, the system’s design should originate from the liquid source or feed tank and work its way to the injection point while keeping in mind that metering pumps will be able to ‘push’ against great pressures but will struggle to ‘pull’ over longer distances.

This means that suction lift should be limited to no more than four feet (1.2 meters) and that a foot valve should be used in top-mount installations. Flooded suction is always preferred in a meteringpump installation as it makes the pump easier to prime, but the length of the flooded suction should be limited to six or seven feet (1.8 to 2.1 meters). And, as with all pump installations, adequately sized lines should be used and piping runs should have minimal bends, elbows

or other design characteristics that may restrict or limit flow.

Other components of the installation to consider include: • Suction Piping: The traditional rule of thumb is to use suction piping that is one size larger than the pump’s suction connection, though it is acceptable to use piping that is the same size as the suction connection if the metering pump will be operating at a slow speed when transferring low-viscosity chemicals. Generally, do not use hard piping that is smaller than 1/2” in diameter or that is smaller than 3/8” in diameter for low-flow applications that use plastic tubing.

• Discharge Piping: The size of discharge piping is not as critical as that of suction piping, but the piping must be suitable for the discharge pressure. Typically, matching the pipe size to the discharge connection should be sufficient to ensure proper and reliable operation.

• Suction Strainer: A suction strainer should always be used as it will prevent foreign matter from entering the pump’s ball checks.

Metering pumps that use a variable speed drive will deliver a turndown ratio that is determined by dividing the pump’s stroke speed by its minimum operating speed. A variable speed drive will enable the pump to inject a dose of the same size on each stroke, but since the stroke speeds will change, the doses themselves will be less frequent. Additionally, it is not practical to use a variable speed drive on motordriven pumps that normally operate at speeds less than 100 to 150 spm since slowing the motor causes each stroke to take longer to complete from start to finish. However, electronic metering pumps, which are pulsed by a solenoid, can operate at less than one spm because 42 • November 2016

Chemical Engineering World

Features CEW spikes that may be caused under these acceleration circumstances and, in the case of high-volume pumps, reduce piping harmonics.

• Flanges/Unions/Compression Fittings: At least one of these must be installed at the pump’s suction and discharge ports in order to more easily facilitate maintenance procedures.

• Isolation Valves: Large-port, quickopening isolation valves should be placed at both the suction and discharge ends of the installation as a way to ease maintenance operations.

Ball valves are usually the best choice for this operation, while needle valves should not be used because their design will cause the creation of a flow restriction.

• Calibration Column: Because metering pumps very often feature pulsed flow at low volumes a drawdown calibration column is the most accurate and convenient method to measure pump performance, provided that the liquid in the column draws down smoothly and stops precisely at the end of each suction stroke. A tall, thin column should be used to ensure ease of reading and reporting accuracy. Calibration columns can also be helpful in determining if any wear has occurred or dirt has accumulated in the pump’s check valves; if the liquid in the column ‘bounces,’ that may indicate that the valves are worn or dirty.

• Relief Valve: Though the metering pump may be constructed with an internal relief valve, it is recommended that an external relief valve also be installed. The external relief valve should be set at 50 psi (3.5 bar) or 10 per cent above the maximum operating pressure, whichever is greater. Any Chemical Engineering World

chemical that flows through the relief valve is piped back to the feed tank.

Using transparent tubing for the relief valve will allow the operator to observe any returned fluid and identify any impurities. When piping the relief valve’s return to the suction side of the installation, the return must be upstream of the pump’s isolation valve so that the flow path will not become blocked.

• Back-Pressure Valve: This component is only necessary when the installation does not produce adequate back pressure and the pump does not contain a built-in back-pressure device. Back-pressure valves are also required when a system has a low-pressure injection point that is hydraulically lower than the feed tank.

• Pressure Gauge: If this optional device is installed, a diaphragm seal must be used if the pump is to be transferring chemicals that arte corrosive to stainless-steel gauge parts, or are viscous or contain particles that could clog the Bourdon tube within the gauge. The pressure gauge should be sized 30 per cent to 50 per cent larger than the maximum expected pressure that is produced by the system.

• Pulsation Dampener: Pulsation dampeners are most commonly required in systems that feature long discharge lines where fluid acceleration during the pumping process can adversely affect the pump’s maximum pressure capacity or relief-valve setting. The pulsation dampener will minimise the pressure

• Injection Quills/Check Valves: An injection quill that is installed at the pump’s injection pump will serve as a check valve while providing better dispersion of the chemical. In lowpressure applications, an injection quill that incorporates a corporation stop, which allows the injection quill to be inserted or removed without having to drain or shutdown the system, will improve efficiency and overall performance.

Conclusion In process or agricultural applications where precise, reliable, efficient injection of chemicals is critical to optimising performance, metering pumps have been proven over the years to deliver the required method of operation. However, knowing that requiring a metering pump is not nearly enough to ensure that the best pump will be chosen for the job. A long list of important variables must be considered, along with an array of pump components that will help optimise performance, if deployed appropriately. Successful chemical injection via metering pump will only be achieved if all variables are taken into consideration and system installation adheres to suggested protocols.

Authors’ Details Tom O’Donnell Director - Business Development Neptune Chemical Pump Company & PSG Email: Tom.ODonnell@psgdover.com Ravi Prasad Director of Sales PSG India Email: sales.psgindia@psgdover.com November 2016 • 43

CEW Features Technical Article

Selection of Correct Non Return Valve in a Piping System for Larger Benefits For several decades, Swing Check valves have been largely used in industries to act as Non Return valve in a piping system. However in a sophisticated piping system, it is substantial to select the valves not only functioning as return valve but considering the consequences it can have in the entire piping system safety and in overall cost. End user can advantage significantly by understanding the capabilities, limitations, advantages & disadvantages of the check valve they employ. The article scrutinizes three types of Check valves - Swing Check Valve, Dual Plate Check Valves and Axial Check valves. In order to find the best fit for a given application, several operating parameters need deliberation. All these may not be imperative for a given application but they all play a role in the selection process.

T

he use of check valves in a piping system is a very common practice, most piping systems depend on fluid moving equipment to energise the media, the protection of such equipment e.g.

Pumps and compressor from back flow must be carefully planned in any piping system and Check valves (Non return Valves) are frequently utilised for this purpose.

Though these are relatively simply devices from functional standpoint, they are often installed without adequate consideration of their performance characteristics and without proper understanding of the limitation of various designs available. For many decades, Swing Check valves have been predominantly used in industries to act as Non Return valve in a piping system. However in a sophisticated piping system it is important to select the valves not only functioning as return valve but considering the consequences it can have in the entire piping system safety and in overall cost. End user can benefit greatly by understanding the capabilities, limitations, advantages & Disadvantages of the check valve they employ. Often decisions are made on past references

and to some extent on marketing. It should however always will be remembered that more often than not, no two piping systems are identical and the Check valve that is adequate for one application may not be suitable for another necessitating valve modification or in some instances a totally different valve design. For simplicity in this article, we will examine three types of Check valves - Swing Check Valve, Dual Plate Check Valves and Axial Check valves. In order to find the best fit for a given application, several operating parameters need consideration.

All these may not be important for a given application but they all play a role in the selection process.

The main Criteria’s one need to consider while selecting the right type of check valves are: • • • • • •

Initial Cost Maintenance Cost Pressure loss and Energy Cost Non Slam Behaviour Flow characteristics Fluid compatibility

Often decisions are made on past references and to some extent on marketing. It should however always will be remembered that more often than not, no two piping systems are identical and the Check valve that is adequate for one application may not be suitable for another necessitating valve modification or in some instances a totally different valve design.

44 • November 2016

Initial Cost: It is the factor of cost user needs to incur in procuring the valve from supplier and cost which he needs to incur in the installation of valve. Now if we compare Swing Check valves V/s Dual Plate check valves weight for 12” size there is difference of almost 30% part of this material saving is consumed in precision machining and lapping to achieve high level of performance over a longer run. Normally sizes 6” and above of Dual plate valve will cost lesser than Swing Check valve. Higher the size and material grade higher is the saving in product. Now in installation also you need lesser supporting structure for Dual Plate due to lesser weight and you need fewer numbers of fasteners to clamp Dual plate with adjacent pipe flanges. So on both counts Dual Plate check scores better over Swing Check. Noz check is a high end valves used for specific application and is costlier to both Swing Check and Dual Plate Check Valve.

Maintenance Cost: It is safe to say that more moving parts in a valve more is the maintenance cost. Swing Check valves if not chosen correctly which is often the case can cost heavily due to immature failure on account of fatigue and slamming. It is important to choose the correct size matching with flow rate, one study points out that almost in 70% cases swing check valve is found oversized causing partial opening resulting into Chemical Engineering World

Features CEW chattering and slamming besides high pressure drop. On other side for Dual plate it is important that valve is chosen from proven manufacturer who has strict control in design and quality as it is spring which is the heart of valve if not chosen correctly may fail prematurely and can cause disruption in operation besides needing a replacement thus adding to the cost of maintenance.

Nozzle check valve though has the spring but it works on compression mode unlike torsional mode in Dual plate check valve thus chances of spring failure is minimal.

Crane Fluid handling associated with invention of Dual Plate check valves (Mission Valves) has experience in selecting the springs from proven source which are tested for millions and millions of cycle to perform.

Pressure Loss & Energy Cost: Pump or compressors needs to generate the discharge to overcome static and frictional loss of given piping system.

While static head is the difference in elevation between the source and highest point of service. The frictional loss is caused by roughness in the pipe and loss by valves and fittings. Valve body geometry dictates the general flow area through the valve and some valves restrict the flow are to below 80% of pipe area thus causing huge head loss, 2nd design of closing member also plays an important role in head loss of valves, if disc swings or rotates out of the flow path can induce lower loss another important factor is special contour and shapes to fully open at low fluid velocity and create a smooth path through the valve thus inducing lower loss.

In correctly engineered Swing Check valve Disc is normally moves out of flow path when in fully open condition but reality is different as in almost 70% cases it is found that it is never 100% open and thus never moves out of flow path fully.

Its Disc is heavy and not engineered to open at low fluid velocity. In Dual Plate check valves Plates shape is engineered to achieve smooth path and are also much lighter in weight thus fully opening at low fluid velocity, Highly engineered Chemical Engineering World

Dual Plate Check valves use PTFE/ Graphite Sleeve and Long leg Springs to make movement of plates frictionless and highly smooth thus reducing frictional loss to a higher degree Same is the case with Noz check rather in smaller sizes pressure loss is lower than Dual plate and Swing Check valves.

Pressure loss is normally measured by CV flow coefficient which is defined as the amount of water in gallons per minute that will pass through a valve with a 1PSI pressure drop, hence more efficient the valve greater is the CV value. Another coefficient used for calculation of head loss is resistance coefficient Kv which is defined as Kv = 890 d^4/Cv^2 H = Kv V^2/2G G:Gravity in ft/Se2

Pump or compressor to overcome the additional head loss from the valve with the equation Flow Characteristics; Water hammer and its associated problem of surge pressure, vibration and shock can have serious consequences in a piping system conveying fluid, if check valves are chosen without proper consideration to their dynamic performance. They can be a major contributor to the aforementioned problem. Dynamic performance is a term used to describe how a check valve performs under various pump shutdown situation and normally illustrated by a plot of reverse velocity V/s deceleration (dv/ dt). All check valve permit some degree of reverse flow prior to closure in a

D: Diameter of valve in inch , CV: Flow coefficient of Valve Kv: Resistance coefficient V: Fluid Velocity in Ft/Se H: Head loss feet of water column.

The lesson here is while it is important to consider Kv value between type of valves, the head loss between various suppliers of a given valve type does not typically produced significant change in system operation. As head loss is a clear function of fluid velocity so flow condition can affect the valve head loss.

Further the velocity may affect the open position of valve. Swing check valve may require between 4-8 Ft/Se of velocity to be forced fully open by the flow. If the valve is not fully open the head loss can be significantly higher than the published head loss, even double. Hence the minimum full open velocity should be used when sizing and computing head loss for swing check valve. The head loss from various valves can be converted into annual energy cost related to electrical power needed by the A= (1.65QHSgCU)/E Gallon per minute

pump shutdown situation and it is sudden reduction of this backflow to zero which yield a rising surge in pressure, this can be coupled with a pressure drop on the upstream side ,resulting in the formation of vaporise cavities ,compounding the water hammer phenomena and Slamming.

The higher the revers velocity, the higher is the surge pressure developed and the higher the impacting force generated upon valve closure. Therefore it is important to minimise the reverse velocity, as the surge pressure generated and impact force may damage the pipe system and excessive noise may be created Slamming relates more specifically to the valve itself and depends upon the right type of check valve selection. Valve slam occurs after a pump or compressor stops when forward flow decelerates, reverse

A: Annual energy Cost ion $ per year, Q: Flow rate in

H : Head Loss in Ft of water, Sg- Specific Gravity ( for water 1) , C : Cost of electricity $/ KWH U : usage percent X100 ( 1 equal to 24 Hrs per day), E : Efficient of Motor ( Usually 80%)

November 2016 • 45

CEW Features

Vr Reverse Velocity (m/s)

Swing-Check

Dual Disc Check Valve

Figure 3, Dynamic response curve.

Nozzle Check Valve -0-0-

dv / dt Deceleration (m/s2)

and accelerate back. The check valves must close quickly before the reverse velocity is too high, in order to minimize the surge pressure and protect the line.

Extensive research has been conducted into the dynamic response of all check valves and it has been found that slam can be reduced by improving dynamic response of valve. This is achieved by ensuring that • The Disc has low inertia and friction • The travel of Disc is short • The closure of the disc is assisted with springs On all above parameters Axial Check (Noz Chek) scores high over Swing type and Dual Plate type, another feature this valve has is maintenance free as spring is centrally guided and spring force is on compression unlike in Dual plate check valves where spring force is torsional As clearly visible Swing check has a poor response to changes in a fluid movement in a pipeline, Spring loaded Wafer Check Valve such as crane Duocheck using a maximum torque independent springs has a better response whereas a system which requires a very fast response Axial ( Nozzle )check provide excellent response time ,the reason is moving components are of lower mass

.have a shorter distance to travel and use of properly size spring is helpful.

In making a decision on what type check valve to use, on basis of dynamic performance, following guidelines can be useful It should be noted that because the Nozzle check valves has the best dynamic performance, this does not mean it has to be selected for all liquid application . It is more suitable for very rapid deceleration rates specifically in incompressible flow.

reduced, with this mind Dual Plate or nozzle Check valves should not be used for the media containing high solids Now that the types of check valves and their performances are understood, one needs to apply rational process for specific application that satisfies System parameters. There is no single Check valve that is best for all application.

Every Piping systems and Installation will require different weights to be given to selection criteria to arrive best suited type of check valves

Fluid Compatibility: Line media is critical for selection of type of check valve, Normally most type will handle clean media and will need special attention if suspended solid concentration is on higher side, If the valve has a straight smooth flow path, the potential for clogging is greatly

Author’s Details Mr. Dinesh Upadhyay Sales Director- India CRANE ChemPharma & Energy Flow Solutions, India Email: dupadhyay@cranecpe.com 46 • November 2016

Chemical Engineering World

Marketing Initiatives

Toshniwal’s Multi-vane Semi Dry Vacuum Pumps for Packaging Industry

V

acuum Packing is a technique of

life upto 3-5 times. It increases the shelf life.

Advantages:

storing and preserving food. The

After evacuating the air in the pack, still

••

foods are stored in an air-tight

so me amount of ox y gen will remain.

pack or bottle to put off the growth of

Air contains 21% of oxygen at atmospheric

microorganisms. The vacuum environment

p r e s s u r e 1 0 1 3 m b a r. T h e o b j e c t i ve

provides the safe atmosphere without

of packaging is to reduce the oxygen

oxygen, protecting the food from spoiling

content by lowering the pressure.

by limiting the growth of fungi or aerobic

For example, if pressure is reduced to

bacteria. Vacuum packaging can extend the

10mbar, the oxygen percent will be 0.21.

If it is non-food item, the vacuum packing protects it from oxidization, c o r r o s i o n a n d m o i s t u r e d a m a g e.

E x a m p l e : Pa ck i n g o f m a t c h e s, socks, medicines etc.

••

Moist foods won’t dry out.

••

Seal dehydrated foods and dr ied herbs for prolong storage.

Vacuum Pump for Vacuum Packaging: The pump has to evacuate air in presence of water vapour for food items like meat, fish, which are moist and also the pump should be able to withstand the cyclic load due to packing and also evacuation prior to flushing operation fo r M o d i f i e d A t m o s p h e r i c Pa ck a g i n g (MAP), like N2 filling.

The vacuum oil used should be food grade oil and Toshniwal Multi-vane Semi dry Vacuum pump is the pump designed for packaging industry.

Salient Features: ••

Reliable

••

Suitable for continuous operation

••

Quieter, better vacuum in shor t cycle time

••

Good water vapour handling capacity

Contact Details: Toshniwal Instruments (Madras) Pvt Ltd 267, Kilpauk Garden Road Chennai – 600010 Phone No. : +91 44 26445626 /8983 Email: sales@toshniwal.net Website: www.toshniwal.net Chemical Engineering World

47 • November 2016

CEW Products Mechanically Actuated Diaphragm Metering Pump Neptune offers its new Series MP7000 Mechanically Actuated Diaphragm Metering Pump. Designed to be a low-flow version of the Neptune Series MP7100 metering pump, the Series MP7000 incorporates a wide variety of design features that provide reliable and accurate dosing of a wide range of mild to aggressive chemicals, including those used in industrial and municipal water and wastewater treatment, chemical processing and agriculture.The Series MP7000 pump incorporates the ruggedness of a hydraulic diaphragm metering pump, eliminates the need for intermediate fluid or hydraulic oil to actuate the diaphragm and reduces the potential for gearbox oil to contaminate the process. Series MP7000 pumps also feature a finned gearbox that dissipates the heat created during normal operation more readily than other designs, oversized check valves that improve performance and minimize friction losses, and rugged bronze gears for quite-running and long service life.

Additionally, the straight-through flow design of the Series MP7000 liquid end and the elimination of the contour plate results in improved flow characteristics, making the pump the ideal solution for pumping difficult chemicals such as viscous fluids, shear-sensitive fluids and fluids with suspended solids. Neptune Series MP7000 pumps feature capacities to 27 gph (102 lph) at operating pressures up to 235 psi (16 bar) and include a 10:1 turndown via micrometer-type knob with a high-contrast, easy-to-read scale. Series MP7000 pumps are also available with a self-loading micrometer that prevents drift, and an optional automatic speed control with variable frequency or SCR drive. All models include a standard 63 IEC motor adaptor.

For details contact: Dover India Pvt Ltd 40 Poonamallee By-pass Senneerkuppam, Chennai 600 056 Tel: 044-26271020, 26271023 E-mail: sales.psgindia@psgdover.com or Circle Readers’ Service Card 01

Trace Oxygen Analysers Trace oxygen analysers are essentially leak detectors. Portable trace oxygen analysers have the additional requirement that they should not be affected while being connected and disconnected to systems using tubing that is full of the very oxygen the analyser is supposed to measure. The AMI 1000RS uses a special version of the AMI patented Cell Block specifically modified to deal with these problems. All of the sample system components and the oxygen sensor are mounted in a single metal block, with drilled pessages connecting them. There is a special 4-way sample selection valve built in to the block that seals off the sensor when not in use, while allowing the sample to bypass the sensor through the needle valve and flowmeter. This allows the tubing used to connect to the sample source to be flushed out before exposing the sensor to the sample of interest, thus allowing the sensor to respond immediately when the valve is turned On without a long come-down time and safeguarding the sensor from excessive air exposure. The design also allows for simple and foolproof gas connections using a single quick disconnect fitting with no breaking or making of tubing fittings, and no complicated sequence of plugging and unplugging connections required. The analyser is designed to be intrinsically safe so that it can be used with flammable samples. It is battery powered with up to 350 hours of life, and it contains a datalogger so that it can be left monitoring a gas system for several days in order to catch intermittent oxygen spikes. The range over which it logs can be adjusted for best sensitivity. When completed, simply plug it into a PC through the USB port and use the AMI software to display the data.

For details contact: ICE Asia Pvt Ltd 4-9 Broadway, 3rd Floor, Dr Babasaheb Ambedkar Road Dadar TT, Mumbai 400 014 Tel: 022-24103916, 24103917 Fax: 91-022-24103920 or Circle Readers’ Service Card 02

48 • November 2016

Chemical Engineering World

Products CEW Compact Drive Technology The servo terminals in the Beckhoff EtherCAT Terminal system integrate a complete servo drive to facilitate highly dynamic positioning tasks in a standard I/O terminal housing. With the new EL72x1-9014 version, STO (Safe Torque Off) safety functionality is now available in an extremely compact terminal design for DIN rail installation.

The new servo terminals enable space-saving drive solutions with safety-related functions that can be directly integrated within the EtherCAT Terminal system.The EL72x1-9014 servo terminals streamline the implementation of STO (Safe Torque Off) safety functions, corresponding to safety level Cat 3/PL d, according to EN ISO 138491:2015. In conjunction with One Cable Technology (OCT), safety integration in an I/O terminal form factor results in a heightened ability to implement space-saving and cost-effective solutions with safety-related drive functionality. In addition, a 2-channel shut-off with corresponding contactors in the motor cable provides a considerable reduction in cabling, space requirements and cost; a single cable connects the safety output (eg, EL2904) and the STO input of the servo terminal. In addition, the OCT solution minimises cable costs and space needed for the motor connection.The EL7201-9014 variant comes in a 12 mm terminal housing and supplies an output current of up to 2.8 ARMS, while the 24 mm EL7211-9014 version can supply a max of 4.5 ARMS. Both are suitable for powering servomotors from the AM8100 Series. The integrated electronic type plate of the AM8100 motors can be read-in automatically by the servo terminals, simplifying commissioning considerably.

For details contact: BECKHOFF Automation Pvt Ltd Suite 4, Level 6, Muttha Towers Don Bosco Marg, Yerwada Pune, Maharashtra 411 006 Tel: 020-40004802, Fax: 91-020-40004999 E-mail: a.phatak@beckhoff.com or Circle Readers’ Service Card 03

Human Machine Interface Bosch Packaging Technology offers Human Machine Interface HMI 4.0 suited for both stand-alone machines and entire lines. It provides an interface for data collection, data sharing and visualization.

HMI consists in its guided workflows, which lead operators through each step of production processes. The same applies to format changes, cleaning and maintenance as well as other processes. The display resembles that of mobile devices like smartphones or tablets. Thanks to an intuitive, touch-sensitive surface, data can be entered with gestures (multi-touch), including zooming in and out with two fingers as well as navigation by swiping.

Thanks to a clearly arranged, tile-structured menu, operators will benefit from a quick overview of all functions and processes of their machines. Tailored to specific user roles, such as operator or line manager, the HMI 4.0 only displays the processes relevant to the current user. The HMI 4.0 provides comprehensive, integrated support as well as more transparent processes and notifications. In case of production downtime, operators immediately receive a notification including information about the causes and troubleshooting support to quickly restart their machines. Direct links to user manuals and format changeover lists assist users in their day-to-day tasks. Furthermore, a new comment section enables users to add their own notes and share them with others. System and line competence implies shifting the focus from a single machine to the entire production line by offering complete solutions.

For details contact: Bosch Packaging Technology Communication Harmonists GmbH & Co KG Poststraße 48, D-69115 Heidelberg, Germany Tel: +49 6221 18779-27 | Fax: +49 6221 18779-11 E-mail: bosch@commha.de or Circle Readers’ Service Card 04

Chemical Engineering World

November 2016 • 49

CEW Products Stretch Wrapping Machine Unlike traditional turntable concept that is designed to rotate the job, the stretch wrapping machine rotates only its carriage without disturbing the job. By avoiding spinning of job, Cybernetik Technologies Pvt Ltd ensure no damage is done even internally to the job. The robust construction ensures minimal maintenance even when run 24x7. It is a total inline packaging solution, which requires no additional labour or equipment. .

The machine has flexible controls and can have multiple schedules with varying wrapping area, overlapping, stretching percentage and speed. A unique Wi-Fi interface provides contact-free communication with the machine, which allows transmission of production and maintenance data to remote Andons or PLCs. The machine has its own safety system, both in hard and soft. No other safety equipment is required. The carriage ring has circular bus bars, providing power to the film holding and tensioning unit. This eliminates twisting cables reducing breakdown and giving an aesthetic look. A pulse heater cuts the film in a flash after wrapping is done. Operator interface is done with an attractive, completely touch screen display that is user-friendly and also provides diagnostic information and important alerts.

For details contact: Cybernetik Technologies Pvt Ltd Gat No: 365, Opp: Indo-German Technology Park Urawade, Mutha Road Pune, Maharashtra 412 108 Tel: 020-67909600 Fax: 91-020-39152337 E-mail: sales.automation@cybernetik.com or Circle Readers’ Service Card 05

Resources on Heat Transfer, Scale-up and Mixing Mettler Toledo offers new web-based resources focused on heat transfer and scaleup and mass transfer to control the reaction rate. Addressing common challenges for chemists and engineers working in process development in the pharma and fine chemical industries, the new online resources provide useful information to scale-up new products faster with decreased costs and high quality.

A precise heat transfer coefficient is required to successfully scale-up a chemical process from lab to plant. Measuring the reactor and jacket temperature enables scientists to calculate the thermal resistance. Thermal resistance is utilized to model the heat transfer and determine the necessary predictions for reactors at large scale. Reaction calorimetry is required to define parameters that influence heat transfer and the heat transfer coefficients to develop models to maximize manufacturing productivity.

Mixing is the removal or decrease of inhomogeneity between phases that are either miscible or immiscible. Process scale-up and optimization necessitates quantifying the impact of mixing on the reaction rate. Precise experiments can be run automatically in a lab reactor system to investigate the mass transfer correlation, and deliver the opportunity to quickly adjust the gas/liquid mass transfer and reaction rate. This accomplishes the required conditions for process scale-up or scale-down.

For details contact: Mettler Toledo India Pvt Ltd Process Analytics Solutions Amar Hill, Saki Vihar Road Powai, Mumbai 400 072 or Circle Readers’ Service Card 06

50 • November 2016

Chemical Engineering World

Products CEW Thermal Mass Flow Meter

Water Meter

Sage Prime is the most popular gas thermal mass flow meter preferred by industrial, environmental and commercial customers for many gas flow applications. It is packaged in a robust, yet lightweight, dual-sided NEMA 4 enclosure, is CE compliant and meets UL and CSA Standards for hazardous service. The goal of all companies is to reduce air pollution, cut global warming emissions, decrease dependence on coal and other fossil fuels, and move towards a cleaner, healthier energy future. Sage metering technology is all about saving energy, protecting our planet and making extremely accurate and durable products.

There are no moving parts, negligible pressure drop, lowend sensitivity, direct mass flow and has high accuracy and repeatability.

The operation of the water flow meter is a simple user-friendly way to operate easily. The water flow meter is an impeller multi-jet type flow meter with measuring inserts made up of engineering plastics. The water meter has a provision for fixing of external digital pulse sensors suitable for remote and digital pulse transmissions for monitoring through BMS systems and batching purposes with PLC, etc. These flow meter is used to measure the water consumption in apartment/ flats, IT park area, hospitals and malls. Features cold (50oC) and hot water (130oC); removable/interchangeable element; sealed register water-proof (IP 67); corrosion-free powder coated body; EEC pattern approval; unaffected by external magnetic fields; and pulser’s coated body fitted without breaking the seal for remote flow totalisation and flow-rate indication.

For details contact: Toshniwal Hyvac Pvt Ltd 267 Kilpauk Garden Road Chennai 600 010 Tel: 044-26448558, 2644 8983 E-mail: sales@toshnwial.net

For details contact: Toshniwal Hyvac Pvt Ltd 267 Kilpauk Garden Road, Chennai 600 010 Tel: 044-26448558, 26448983 Fax: 91-044-26441820 E-mail: sales@toshniwal.net or Circle Readers’ Service Card 07

or Circle Readers’ Service Card 08

Orb Pilot for Reaction Scale-up Syrris offers the Orb Pilot jacketed reactor. This unique system offers flexible and cost-effective pilot scale batch chemistry.

The Orb Pilot is a user-friendly, floor standing scale-up jacketed reactor providing an exceptional combination of performance, versatility and value for money. It offers a choice of vessel sizes from 10 to 50 liters on a single system, and is precision engineered to withstand temperatures from -40 to +235oC. Available with a selection of single and vacuum jacketed vessels, plus a wide range of accessories and stirring options, the Orb Pilot can be easily configured to match your exact requirements. It features a unique clamp, easy motor lift and rapid oil drain mechanism – offering fast vessel changes – while a spring-loaded base avoids the need for frame adjustments to accommodate different vessels or thermal expansion. Combined with an incredibly robust and durable design, this will ensure the Orb Pilot provides years of continuous, cost-effective service for virtually any batch chemistry application.

For details contact: Syrris Scientific Equipment Pvt Ltd 420/421 Corporate Avenue Sonawale Road Goregaon (E), Mumbai 400 063 Tel: 022-26864410 E-mail: info@syrris.com or Circle Readers’ Service Card 09

Chemical Engineering World

November 2016 • 51

CEW Products Vacuum Packaging Vacuum packing is a technique of storing and preserving food. The food is stored in an air-tight pack or bottle to put off the growth of micro-organisms. The vacuum environment provides safe atmosphere without oxygen, protecting the food from spoiling by limiting the growth of fungi or aerobic bacteria. Vacuum packaging can extend the life up to 3-5 times. It increases the shelf-life.

After evacuating the air in the pack, still some amount of oxygen will remain.

Air contains 21 per cent of oxygen at atmospheric pressure 1013-mbar. The objective of packaging is to reduce the oxygen content by lowering the pressure, eg, if pressure is reduced to 10-mbar, the oxygen per cent will be 0.21.

If it is a non-food item, the vacuum packing protects it from oxidization, corrosion and moisture damage, eg, packing of matches, socks, medicines, etc. Moist food items will not dry out. Seal dehydrated foods and dried herbs prolong storage.

The pump has to evacuate air in presence of water vapour for food items like meat and fish, which are moist and also the pump should be able to withstand the cyclic load due to packing and also evacuation prior to flushing operation for modified atmospheric packaging (MAP), like N2 filling.

The vacuum oil used should be food grade oil. Toshniwal’s multi-vane semi-dry vacuum pump is the pump designed for packaging industry. It is reliable, suitable for continuous operation, quieter, better vacuum in short cycle time, good water vapour handling capacity, etc.

For details contact: Toshniwal Instruments (Madras) Pvt Ltd 267 Kilpauk Garden Road Chennai 600 010 Tel: 044-26445626, 26448983 E-mail: sales@toshniwal.net or Circle Readers’ Service Card 10

Tools For Extracting & Aligning Building & Plant Features FARO announces the release of PointSense 17.5, providing powerful new tools for extracting and aligning building and plant features from point cloud data inside Revit and AutoCAD. PointSense 17.5 for AutoCAD provides more customized tools for the extraction of building components, such as walls, windows and doors. After extracting the building components, architects benefit from new alignment tools that dramatically speed up the process of delivering 2D plans from 3D point clouds.

In addition to these new features for architects, industrial facility designers also benefit from new functions for creating 3D plant models. One of the several new features is an automated cylinder extraction tool, which reduces time and simplifies 3D modeling of piping from point clouds.

Besides new tools in PointSense for AutoCAD, PointSense 17.5 for Revit also speeds up workflows with a new toolset for pipe modeling and a new visualization tool that shows the user only the relevant parts of the scan project that they are interested in.

For details contact: FARO Business Technologies India Pvt Ltd E-12, B-1 Extension Mohan Co-op Indl Estate Mathura Road New Delhi 110 044 Tel: 011-46465664, 46465656 E-mail: india@faro.com / Amrita.Gokhale@faro.com or Circle Readers’ Service Card 11

52 • November 2016

Chemical Engineering World

Chemspec South East Asia - 2016

Chemtech World Expo 2017 Dates: 14 – 17 February 2017 Venue: BC&EC Mumbai, India Details: Platform to showcase services, technologies, innovations and current & future trends of entire value chain of process industry.

Contact: +91 22 40373636 Email: sales@jasubhai.com Website: www.chemtech-online.com

Dates: 30 Nov to 01 Dec, 2016 Venue: Queen Sirikit National Convention Center, Bangkok, Thailand Details: Exhibitions for the fine and speciality chemical industry Organiser: Mack Brooks Exhibitions Asia Ltd Contact: +66 (0) 2684 6894 Email: wendy@mackbrooks.com Website: www.chemspec-southeastasia.com SOMChE - 2016

Make in India – Global Vision of Indian Textile Industry Dates: 1-2 December, 2016 Venue: Mumbai, India Details: The conference will be addressed by Government representatives, reputed textile professionals and renowned experts from different parts of the world will present their papers to over 500 equally high profile participants. This will give a rare opportunity to the participants to listen to such high quality experts.

Organiser: The Textile Association (India), Mumbai Unit Contact: +91 022-24328044 Email: taimumbaiunit@gmail.com Website: http://www.textileassociationindia.com/ 2nd Wastech International Summit and Expo 2016 Dates: 3-4 December, 2016 Venue: Gujarat, India Details: Gujarat Pollution Control Board and Confederation of Indian Industry jointly with KPMG will organise an International 2 days Summit and Expo as part of the pre-Vibrant Gujarat Event for promoting the sustainable development of the state through concepts of 4R’s principle for waste management Organiser: Confederation of Indian Industry (CII) Contact: +91 079-40279900 Email: deepa.sharma@cii.in Website: http://www.cii.in/events.aspx?gid=S PETROTECH – 2016 Dates: 5-7 December, 2016 Venue: New Delhi, India Details: The event aims to explore areas of growth in petroleum technology, exploration, drilling, production and processing, refining, pipeline transportation, petrochemicals, natural gas, LNG, petroleum trade, economics, legal and human resource development, marketing, research & development, information technology, safety, health and environment management in the oil & gas sector.

Organiser: Indian Oil Contact: +91 9873020408 Email: shankar@indianoil.in Website: http://petrotech.in/index.aspx Chemical Engineering World

Dates: 1 – 3 December 2016 Venue: Miri Marriott Resort & Spa, Malaysia Details: SOMChE 2016 will bring together a community of chemical and process engineers and other related engineers from Malaysia and South East Asia region and beyond to discuss the latest development and engineering solutions for sustainable food, water, energy and environment. Therefore, this symposium will give an opportunity to learn of the latest advances and best practices of sustainable development in industry and academic.

The 2016 symposium will take place in Miri, Sarawak, Malaysia with the theme of `Engineering Solutions for Sustainable Development’.

Organiser: Curtin University, Sarawak Malaysia Contact: +60 85 44 3939 Email: somche2016@curtin.edu.my Website: www.curtin.edu.my 5th World Congress on Petrochemistry and Chemical Engineering Dates: 05 – 07 December, 2016 Venue: Phoenix, Arizona, USA Details: The conference directs towards addressing main issues as well as future strategies of global energy industr y.

This is going to be the largest and most promising inter national conference where oil and gas industr y professionals as well as decision makers will come to discuss and debate on various aspects of the challenges, risks and investment oppor tunities throughout the complete integrated energy and utilities supply chain. Petrochemistr y Inter national Conference will also provide the proper business oppor tunities and provide an in oppor tunity to make new decisions by meeting decision makes in the energy sector Organiser: Conference series LLC Contact: +1-650-268-9744 Email: petrochemistry@chemseries.com Website: http://petrochemistry.omicsgroup.com/ November 2016 • 53

CEW Project Update

New Contracts/Expansions/Revamps The following list is a brief insight into the latest new projects by various companies in India.

CHEMICALS M Chemicals proposes an expansion from 10-TPM to 35-TPM of its synthetic organic chemicals manufacturing unit in GIDC Sachin, district: Surat, Gujarat. The estimated cost of the expansion is ` 12-million. The current status of the project could not be ascertained. According to MoEF sources, EIA report has been prepared by Aqua-Air Environmental Engineers. The existing plant manufactures 10-TPM 6-Nitro, 1-Diazo, 2-Napthol, 4-Sulphonic Acid. The expansion entails addition of new products namely, 25-TPM G-Salt, R-Salt, Amido G-Acid, Aniline 2,4 DSA, Aniline 2,5 DSA, Para Nitro Chloro Benzoyl Sulphonic Acid, Sulfo Tobias Acid, Para Cresidine Ortho Sulphonic Acid, Schaffer’s Acid, Broenner’s Acid. Total plot area is approximately 1,650-sq m, out of which, 300-m 2 has been used for green belt development.

5-KLD effluent will be treated in-house ETP and 10-KLD effluent will be sent to common MEE of MEPL for evaporation.

Mamta Texdyes (Samba) proposes a synthetic organic chemicals manufacturing unit in GIDC Sarigam, district: Valsad, Gujarat.

The project is spread over 2,250-sq m. The estimated cost of the project is ` 32-million. The current status of the project could not be ascertained. According to SEIAA sources, Eco Chem Sales Services is the environmental consultant. The proposed products are 200-TPM sulphur black grains, 300-TPM sulphur black liquid and the by-products are 250.1-TPM sodium thio sulphate crystal and 47.12-TPM sodium chloride salt. 700-sq m area has been proposed for green belt development. Industrial waste water will be treated in primary and tertiary treatment plant and treated waste water will be discharged into CETP Sarigam.

Resipol Adhesives proposes an expansion of synthetic organic chemicals manufacturing unit in village: Rajpur, district: Mehsana, Gujarat. The estimated cost of the expansion is ` 40-million. The current status of the project could not be ascertained. According to SEAC sources, the manufacturing of existing products, 2.0TPM benzyl alcohol, 1.1-TPM benzyl benzoate, 3.0-TPM benzoic acetate, 1.4-TPM sodium benzoate, 1.8-TPM sodium acetate will be discontinued and 300-TPM polyester resins (different grades) and alkyd resins (different grades), 90-TPM melamine formaldehyde resin and 85-TPM urea formaldehyde resin will be manufactured as new products. The plot area is approximately 6,033.00-sq m. Unit has proposed 2,000-sq m area for green belt development. Industrial effluent of 0.42-KLD after primary treatment will be evaporated in kettle type evaporator. Two DG sets each of 65-KVA will be provided. It was decided to recommend the project to SEIAA, Gujarat for grant of environmental clearance.

Royal Wood proposes a 90-TPM phenol formaldehyde resin, urea formaldehyde resin, melamine urea formaldehyde resin and melamine formaldehyde resin manufacturing unit in village: 54 • November 2016

Modvadar, district: Kutch, Gujarat. The current status of the project could not be ascertained. According to MoEF sources, existing products are 3-million sq m per month plywood, flush door, block board and veneer. The manufactured resin will be used for in-house consumption at the wood products plant. The project will come up on 11,603.62-sq m of existing land. The greenbelt area is 600-sq m. A base platform will be constructed for the resin plant; remaining will be MS structure.

Eternis Fine Chemicals proposes an expansion of synthetic organic chemicals manufacturing unit from 42,200-TPA to 60,000-TPA in MIDC Kurkumbh, district: Pune, Maharashtra. The current status of the project could not be ascertained. According to MoEF sources, total land area is 100,400-sq m and built-up area is 42,710-sq m. 33 per cent will be developed as green belt area. The project will entail: 1) capacity expansion of existing products and by-products; 2) addition of similar products and by-products; 3) introduction of new eco-friendly biomass boiler as replacement to furnace oil. Project involves manufacturing of fragrance from organic raw materials by chemical process like hydrogenation, esterification, Diels-Alder reaction, cyclisation, dehydrogenation, aldol condensation, etc, followed by distillation to match precise quality standards. By-products capacity will be augmented from 11,400-TPA to 20,000-TPA. The estimated cost of the project is ` 1,050-million. The power requirement 12,000KVA will be available through Government Electricity Board.

Panoli Intermediates (India) proposes an expansion of its specialty chemicals manufacturing unit and a new 10-MW coal-based captive power project in Unit-III, GIDC Nandesari, district: Vadodara, Gujarat. The estimated cost of the project is ` 100-million. The current status of the project could not be ascertained. According to MoEF sources, the total plot area is 15,480-sq m. The capacity of isomers and DNCB such as 2:4 DCNB, 2:6 DCNB, 2:5 DCNB is to be augmented from 200-TPM to 2,200-TPM, ortho anisidine/para anisidine from 100-TPM to 1,100-TPM, ortho nitro aniline/para nitro aniline from 300-TPM to 2,300-TPM, isomers of DCA from 80-TPM to 1,080-TPM, isomers and DCNB such as 2:3 DCNB, 2:5 DCNB. isomers of DCNB such as 2:3 DCNB, 2:5 DCNB, 3:4 DCNB from 200-TPM to 2,200-TPM, H-acid from 50-TPM to 500-TPM and addition of a new product namely, 1,500-TPM derivatives of nitro phenol and a new 10-MW coal-based captive power project. 10-MW power requirement is to be met from MGVCL and 10-MW from the captive power project. The effluent will be treated in proposed effluent treatment plant.

Saras Plywood Products is planning a 60-TPM urea formaldehyde resin manufacturing plant in New GIDC Gundlav, Chemical Engineering World

Project Update CEW district: Valsad, Gujarat. The existing land area is 1.5 acres. The estimated cost of the project is ` 7.5-million. Kalyan Industries is the equipment supplier. The project is waiting for environmental clearance. Civil work will commence in 3 months. The project is planned for completion in this year. According to SEIAA sources, the company has proposed primary treatment plant followed by evaporator for treatment of industrial effluent and has also proposed a multi-cyclone separator.

FMC India is planning an expansion of its chemical manufacturing unit at IDA Patancheru, district: Medak, Telangana. The estimated cost of the project is ` 17.5-million. As of September the project was waiting for the environmental clearance. According to MoEF sources, the plot area is 4.027 acres. The company proposes to manufacture 50-TPM of products as part of the expansion.

Green belt on 33 per cent of the land area will be developed and maintained. Power requirement will be made available through SPCPDCL. The project will be completed within 2 years.

Globex Laboratories (R&D) proposes a pigments manufacturing unit at village: Dabhasa, district: Vadodara, Gujarat. According to MoEF sources, the project will come up in the existing land on 9,312-sq m. Kadam Environmental Consultants, Vadodara is the environmental consultant. The project will entail manufacture of 40-TPM red pigments, 40-TPM yellow pigments and 450-TPM dilute phosphoric acid. Environment clearance has been obtained for the products – red pigments and yellow pigments. Construction work has begun, as EC and NOC have been received. Effluents generated will be treated in effluent treatment plant having MEE. The company has applied for Amendment in Environmental Clearance dated 26 th September 2012 for change in fuel from LDO to agro waste briquettes and addition of one raw material, ie, phosphoric acid and generation of dilute phosphoric acid (25 per cent basis) as by-product.

Bohra Industries is implementing an expansion of its chemical and fertilizer manufacturing unit at Umarda, district: Udaipur, Rajasthan on 14,500-sq m of existing land. The project will entail expansion of single super phosphate capacity from 400TPD to 600-TPD, granulated super phosphate from 200-TPD to 300-TPD and addition of new products namely 150-TPD triple super phosphate, 550-TPD synthetic gypsum, 30-TPD Di-calcium phosphate, 160-TPD phosphoric acid, 0.3-TPD potassium fluoride, 150-TPD H 2SO 4 and 0.3-TPD Sodium Tri Polyphosphate (STPP). Machinery has been ordered from China. Civil work is in progress. The project is scheduled for completion in 2018.

Ami Lifesciences proposes expansion of its synthetic organic chemicals manufacturing unit (viz, pharmaceutical bulk drugs and drug intermediates) from 65.70-TPM to 131.60-TPM in Padra, district: Vadodara, Gujarat. The estimated cost of the project is ` 87.046-million. Environmental Consultant to this project is Envisafe Environment Consultants. According to MoEF Chemical Engineering World

sources, total plot area is 23,760-sq m (existing 10,270-sq m and 13,490-sq m for expansion). The unit currently manufactures 2-TPM 1-Acetyl Naphthalene, 1-TPM 2-Acetyl Naphthalene, 6-TPM Itopide HCl, 1.20-TPM Loxapine Succinate, 0.30-TPM Amoxapine, 6-TPM Venlafaxine, 6-TPM Progunil HCl, 6-TPM CB-2-L-Valine, 0.60-TPM Nateglinide, 0.60-TPM Quetiapine, 24-TPM Carbomazepin and 12-TPM Oxacarbomazepin.

The expansion will involve addition of new products. Water requirement from ground water source will be increased from 34.53-cu m/day to 181-cu m/day after expansion. Effluent generation will be increased from 9.35-cu m/day to 79.5-cu m/day after expansion. Highly concentrated effluent will be sent to captive incinerator for incineration. Remaining effluent (70-cu m/day) will be treated in the ETP comprising primary, secondary and tertiary treatment. Treated effluent will be sent to CETP for further treatment. ETP sludge, inorganic residue and incineration ash will be sent to TSDF. Spent carbon, organic residue will be sent to incinerator.

Adi Finechem is planning a 40-TPA specialty products manufacturing project on a 2-acre land at an estimated cost of ` 400-million in village: Chekhala, district: Ahmedabad, Gujarat.

The project is waiting for environmental clearance.

RSPL is planning a 1,500-TPD soda ash plant and 40-MW captive power project in village: Kuranga, district: Jamnagar, Gujarat.

Land acquisition is in progress. 85 per cent of land has been acquired. The project is waiting for environmental clearance. The entire project is planned for completion in 5 years from zero date.

MINING Metabluu Power, a sister concern of Minera Udyog India, is planning a 75,000-TPA iron ore mining project in village: Devikonda, district: Karimnagar, Telangana. The project is awaiting Government approval.

Aryan Ispat & Power is planning an expansion of its coal washery in village: Bamoloi, district: Sambalpur, Odisha. The project will come up in the existing 204.65-acre integrated steel plant premises. The capacity of the project is to be augmented from 0.70-MTPA to 5.70-MTPA. The cost of the project is ` 600.7-million. The project is awaiting environmental clearance and planned for completion in 1-year from zero date. According to MoEF sources, the expansion is based on heavy media cyclone (wet process) technology. The washery will produce washed coal of an average ash around 34% (GCV 4,350Kcal/kg), middling (ash content about 58%) of GCV around 2,350-Kcal/kg useable as fuel in FBC boilers. The proposed expansion will be the state-of-the-art with close circuit water system, classifying cyclone, high frequency screens, thickener and multi-roll belt press filters. Power requirement of 5-MVA will be sourced from its own power plant connected with the Grid Corporation of Odisha.

November 2016 • 55

CEW Project Update NTPC is planning the Kudanali-Luburi coal mining project in district: Angul, Odisha. The company has signed an agreement on June 15, 2015 with Jammu and Kashmir State Power Development Corporation (JKSPDCL) for promoting a joint venture company with 67:33 equity participation for undertaking exploration, development and operation of jointly allocated Kudanali-Luburi Coal Block at Odisha by the Ministry of Coal.

DSP Associates is planning a 15,17,600-TPA sand (minor mineral) mining project in the mines of Tikola-1 Sand Unit at village: Tikola, district: Gurgaon, Haryana. Mining lease area is 42.50-hectare. The estimated cost of the project is ` 55-million. The project is waiting for environmental clearance.

Mining work is expected to commence soon. According to MoEF sources, out of the total area, 31.50-hectare area falls in the river bed and 11-hectare area falls in agricultural land (outside river bed). Method of mining will be opencast semi-mechanized without drilling and blasting. The mine will be excavated out in layers up to a depth of 3-m in riverbed and 9-m in agricultural field. Letter of Intent (LoI) for mining contract has been granted for a period of 9 years.

NON-CONVENTIONAL ENERGY Viaton Energy, promoted by the 3F Group and Creative Group, is planning a 10-MW power project in Punjab. Discussion is in progress with the Government for allocation of site. The company is already operating a 10-MW biomass-based IPP at village: Khokhar Khurd, district: Mansa, Punjab from July 2013. The generated power is being sold to the Government of Punjab.

Hubli Electricity Supply Company is planning solar RTPV grid connected power plants in district: Belagavi, Karnataka. E-tenders have been floated to design, manufacture, supply, installation, testing and commissioning of solar RTPV grid connected power plants on roof-tops of 31 HESCOM office buildings in Belagavi Zone Jurisdiction for total load of 136-KWp including operation and maintenance for a period of five years. The approximate amount put to tender is ` 18.62-million.

NON-CONVENTIONAL POWER BMS Starch, a part of the BMS Group, is implementing a 6-MW biomass-based co-gen power plant in village: Kurandi, district: Bastar, Chhattisgarh. The project is coming up along with a starch manufacturing unit on 26-acre of acquired land at a total estimated cost of ` 1,350-million. Equipment supplier is yet to be appointed. Civil work is in progress. The project is expected to be completed in this year.

THERMAL POWER Surguja Power, a 100 per cent subsidiary of Adani Mining, proposes a 540/600-MW coal washery rejects based thermal power project spread over 47.5-hectare of land in villages: Parsa, Kete, district: Surguja, Chhattisgarh. The estimated cost of the 56 • November 2016

project is ` 35-billion. According to MoEF sources, Greencindia Consulting is the environmental consultant. The project will comprise of a 4 x 135/150-MW power plant based on the coal washery rejects within the Parsa East and Kete Basan coal block at Udaypur Tehsil, district: Surguja. The Group has been assigned work by Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL) for mining, development and operation of Parsa East coal block and supply of beneficiated coal. Sizeable amount of rejected coal will be generated, which shall be utilized for power generation by setting up the power project within the coal block. The plant is proposed to have circulating fluidized bed combustion-based (CFBC) coal fired boilers.

Rain Cements is planning a 7-MW waste heat recovery-based power plant in village: Boincheruvupalli, Peapully Mandal, district: Kurnool, Andhra Pradesh. The estimated cost of the project is ` 700-million. The project will come up in the existing cement plant premises. The project will generate up to 7-MW of gross electrical energy from the waste heat and the flue gases evolved during the cement manufacturing process. The project that will be financed by a combination of internal accruals and bank loans is expected to be completed in about 14 months. The Board of Directors of the company had approved of the project at its meeting held on 27 th February, 2015.

Seven Star Steels is planning an expansion of its thermal (coalbased) captive power project from initial 8-MW to 12-MW at a cost of ` 600-million in village: Kalendamal, district: Jharsuguda, Odisha. The project will come up along with an expansion of its sponge iron plant from 60,000-TPA to 180,000-TPA and ingot plant from 39,200-TPA to 80,000-TPA. Machinery will be partially procured locally and partially imported; orders are yet to be placed. The project is waiting for industrial clearance. Work on the project will commence soon.

FERTILISER Fertilizer Corporation of India is planning to set up a 1.27MTPA natural gas-based urea plant in district: Gorakhpur, Uttar Pradesh. Deloitte Touche Tohmatsu India is the Financial Advisor. Request for Qualification (RFQ) invited for selection of investor for setting up the project at the Gorakhpur unit of FCIL in August 2015. The Ministry of Chemicals and Fertilizers, has authorized FCIL for revival of the Gorakhpur Unit by selecting a suitable investor to setup, design, finance, construct, establish, operate and maintain the project for a term of 33 years, which may further be renewed. The total land area of 993.81 acres is available with FCIL. The estimated investment size is ` 60-billion.

The Government has earmarked 2.4-MMSCMD of domestic natural gas for the project from Daman Field of Oil and Natural Gas Corporation, which commenced production from September 2016. The natural gas is proposed to be transported through the upcoming Jagdishpur-Phulpur-Haldia pipeline to be constructed

by GAIL (India). The construction period is 3 years.

Chemical Engineering World

Project Update CEW Agrocel Industries is implementing a potassium schonite manufacturing unit in village: Dhordo, district: Kutch, Gujarat.

Civil work is in progress.

PETROLEUM Indian Oil Corporation is planning a common user facility (CUF) for storage of petroleum products in Berhampur, district: Ganjam, Odisha. Single window clearance has been received.

Land acquisition and land allotment is under progress. The project is planned for completion in 3 years from zero date.

Bharat Petroleum Corporation is planning a 2.6-MTPA diesel hydro treatment (DHT) unit and associated facilities in Chembur, Mumbai, Maharashtra. According to MoEF sources, BPCL intends to set up a diesel hydro treater (DHT) unit to produce diesel conforming to BS-IV/V norms. DHT would hydro treat diesel, kerosene and naphtha streams (with diesel product from new DHT unit conforming to 8 ppmw sulphur).

Along with DHT unit, the following associated facilities will be installed: 1) revamp of existing hydrogen generation unit-II (HGU-II) to meet the additional hydrogen requirement for DHT; 2) new amine regeneration unit (ARU); 3) sour water stripper (SWS) unit to treat additional sour water generated from DHT; 4) revamp of all four SRU trains to meet the additional acid gas processing; and 5) new gas turbine (GT) with heat recovery and steam generator (HRSG) for additional power and steam requirements. Implementation of this project will enable Mumbai refinery to increase BS-IV HSD production from 3.5-MTPA to 5.9-MTPA. Proposed DHT unit will be installed in existing tank farm area comprising of tanks 501, 502, 503, 504 and 508. The above tanks will be removed after reallocation of existing tanks on these services (Plot Area of 52 x 203 meters approx). Power and steam requirement will be met from proposed new gas turbine (GT) combined with heat recovery and steam generator (HRSG) system. A debt to equity ratio of 1.5:1 is considered. Removal space clearance work is in progress. The project is waiting for environmental clearance. Work on the project commenced in July 2015 and is planned for completion in 2017.

Indian Oil Corporation is planning an ethylene derivative plant at Paradip refinery complex, district: Jagatsinghpur, Odisha.

The estimated cost of the project is ` 40-billion. The plant will provide products that will facilitate manufacturing of polyester chips, fibers, PET bottles, PET chips, polyester yarn, etc. The corporation is evaluating the feasibility for setting up the plant.

CEMENT Wonder Cement proposes a 2Ă—1.5-MTPA clinker grinding unit in village: Takarkhede, taluka: Amalner, district: Jalgaon, Maharashtra under 2 phases. The current status of the project could not be ascertained. According to MoEF sources, 1.5MTPA will be set up under each phase. The total plant area Chemical Engineering World

is 35.4-hectare. About 33 per cent of the land area will be covered under green belt. The estimated cost of Phase-I is ` 4,120-million and Phase-II is ` 2,620-million. Power requirement will be 15-MW for Phase-I and 15-MW for PhaseII, which will be sourced from state grid. A 6.5-MW DG set is proposed under Phase-I. The plant will adopt dry process to manufacture PPC and OPC. A small township with guest house, officer, hostel club building will be constructed. The project will be completed in 18 months after receipt of regulatory approvals.

The Ramco Cements proposes capacity upgradation of Line-1 cement plant and setting up a new captive power plant in village: Jayanthipuram, district: Krishna, Andhra Pradesh. The current status of the project could not be ascertained. According to BSE reports, Petron Engineering Construction has received Letter of Intent (LoI) from the company for civil and mechanical works for the project. The contract value is ` 225-million.

Shreeji Infraspace is planning a ready mix c e me n t manufacturing unit in district: Bulandshahr, Uttar Pradesh.

An in-house team will render civil contractual services. The project is in planning stage. The company is preparing the approval documents to be submitted to the Government of Uttar Pradesh. Work on the project will commence after the receipt of the approval.

Jaiprakash Associates is planning an integrated cement project at a cost of ` 12,000-million in Dalla, district: Sonbhadra, Uttar Pradesh. The project will be spread over 67-acre of existing land and will comprise of a 2.20-MTPA clinker plant and a 1.50-MTPA cement plant. This is an expansion of the cement plant by setting up of an additional clinker and cement plant. The existing plant has a production capacity of 2.0-MTPA clinker, 0.5-MTPA cement, 27-MW power along with 6 captive limestone mines. Limestone will be received from the mine in the same plant. The project is waiting for environmental clearance. Work on the project will commence after receipt of environmental clearance.

METALLURGY JSW Steel has re-commissioned two of its blast furnaces at Vijayanagar, district: Ballari, Karnataka and at Salem, Tamil Nadu. The furnaces were shut down in August and November 2015 respectively for relining and modification. The furnaces have been re-commissioned in February 2016. The re-commissioning work of the blast furnace at Dolvi Works, district: Raigad, Maharashtra, is in an advanced stage and is expected to be operational shortly.

APL Apollo Tubes is planning an expansion of its tubes manufacturing project at Murbad, district: Thane, Maharashtra from 22,000-TPM to 30,000-TPM. Consultant is yet to be appointed. The project is in planning stage.

November 2016 • 57

CEW Book Shelf Process Equipment Procurement in the Chemical and Related Industries Author/s: Kiran Golwalkar Price: ` 5,573 Page: 259(Hardcover) Publisher: Springer; 2015 edition About the Book: The concise volume explains when to procure new equipment, how to prepare specifications for floating inquiries, and provides guidelines for detailed technical discussions with vendors in the chemical industry and related industries. It covers the common equipment and supplies used in chemical plants and effluent treatment facilities such as pumps, blowers, reactors, heat exchangers, waste heat recovery boilers, and heat and acid resistant lining. This book serves as a checklist to the plant managements for procurement of the correct equipment in the most efficient timeframe ensuring that projects are not delayed due to the long time period required for procurement of new equipment

Structural Analysis and Design of Process Equipment Author/s: Maan H. Jawad, James R. Farr Price: ` 17,482 Page: 752 (Paperback) Publisher: Wiley-Blackwell A new edition of the standard text/reference for analysis and design of petrochemical process equipment, revised to reflect current practice. Covers the theory of plates and shells and its industrial applications, and provides background for some of the design equations in the ASME Boiler and Pressure Vessel Code, Section VIII. This Second Edition offers a new chapter on design of power boilers, and existing chapters have been expanded to cover new topics such as toughness criteria, design of expansion joints, and tube–to–tubesheet parameters. Also provides revised coverage of design of water tanks, heat tube exchangers, and noncircular vessels. Appendixes contain extensive data for quick reference.

Chemical Process Equipment Design: Vol. 1 Author/s: Suresh C. Maidargi Price: ` 187 Page: 250 (Paperback) Publisher: Elsevier It introduces the students and practicing engineers to the practices and standards of drafting the equipment used in chemical food processing polymer engineering and pharmaceuticals processing industries.

The textbook follows the Bureau of Indian Standards BIS 696 1972 specifications and methodology of equipment drawing. It introduces to the symbolic representations of the equipment as used in the chemical food processing and pharma industries. It provides the detailed drawings of some commonly used equipment that is repeatedly used in different sizes and shapes. Orthographic and assembled views are illustrated. Several assignments have been suggested for practicing the drawing. In this second edition a new chapter on computerized drawing method has been introduced. For this solid edge software has been used.

58 • November 2016

A Worki ng G u id e to P rocess E q u ip m e n t, Four t h E di tio n Author/s: Norman P. Lieberman, Elizabeth T. Lieberman Price: ` 4,487 Page: 624 (Hardcover) Publisher: McGraw-Hill Education About the Book: Explains how to diagnose, troubleshoot, and correct problems with chemical and petroleum refining process equipment. Nine new chapters cover: •

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November 2016 • 59

CEW Interview

“This is a great time for course correction”

“For the ‘Make in India’ campaign to be a real success, the government has to find a way to create a level playing field by ironing out anomalies in the taxation structure and taking some steps to implement a ‘Preferential Pricing’ mechanism which will maximize the utilization of the domestic manufacturing base, provide further encouragement to Indian suppliers and service providers and aid employment generation in the country,” said Mr Subramanian Sarma, CEO & Managing Director L&T Hydrocarbon Engineering in an interview with Mittravinda Ranjan.

What is the market sentiment across the EPC industry currently?

The general sentiment across the EPC industry, in both domestic and international markets, is more bearish since there is a general slowdown in capital expenditure and markets have shrunk across the board.

Most of the companies, who have belief in this industry and have managed their businesses reasonably well, see it as a great opportunity to reset their cost base and enhance their efficiency levels.

Many organizations are spending a good amount of time & energy to introspect and reflect on their past practices as everyone; producers, service providers & suppliers; had built up inefficiencies when the oil prices were high. The industry is now trying to become more agile, efficient and cost effective.

60 • November 2016

How do you compare the market turbulence in 2008 with the current situation when there have been massive swings in oil prices and when do you see the oil prices stabilizing?

Yes, the oil industry did go through turbulent times in 2008 and is going through a similar phase now but the underlying reasons are entirely different.

The financial crisis of 2008 was triggered by the downfall of Lehman Brothers which shook the confidence of the global financial system. Further, the world economy was highly leveraged and interconnected which amplified the crisis and lead to an economic recession. Oil prices, along with all other commodities corrected sharply.

But the basic economic drivers, consumer behaviour, and supply/demand were not severely impacted and the global sentiment

reversed completely once Governments around the world took concerted action to aid the recovery. The oil prices also recovered sharply as the drop was never governed by the fundamentals of the oil industry, in the first place.

However, today, the fundamental issue is the significant gap between supply and demand in the global oil market and in my view, we are not likely to see a spike in the oil prices that was observed last time. There has been a significant demand erosion due to the economic slowdown in Europe & China, and even the United States is yet to fully recover. In the past, such shifts in demand were handled to a certain extent by managing supply but this is no longer the case today and hence the recovery in oil prices will be much slower Having said that, I believe that the oil prices will stabilize in a time frame of around 18 – 24 Chemical Engineering World

Interview CEW months at around USD 55-60 per barrel.

The emergence of viable alternative energy sources and the reduction in Breakeven Point achieved by Shale Oil producers should provide further support at this pricing level. I would say that this price range is not bad for the industry, as it benefits consumers and oil importing countries like India.

Can you point out some of the inefficiencies that the organizations have built up over the past few years which they are now trying to address?

During boom periods, there is always a tendency to build up large organizations, with multiple locations and work centers because manpower cost is seen as a small fraction of the total cost base. But in the current scenario, organizations are striving to become leaner and evaluating options like outsourcing to reduce their fixed costs and increase their variable costs.

Secondly, with commodity prices having corrected sharply, the focus is now to extract maximum value from the supply chain, which remains the biggest area of expenditure of any organization.

Service providers like LTHE are also taking a fresh look at all our procedures, processes, and systems to identify improvements.

Existing work practices are being challenged to ensure that value is being added at every step and if not are being overhauled to remove inefficiencies.

Please share some of the key measures that LTHE is taking towards improving overall efficiency?

LTHE does not need to outsource as we are already located in an efficient cost base unlike Australia, United States or Europe.

However, we have also taken several measures including the closure of smaller offices in India which were not adding much value, reducing fixed costs in our International locations and by consolidating offshore operations at Mumbai and onshore operations at Vadodara respectively.

In terms of developing capability, we have a bespoke International Execution Capability Chemical Engineering World

Development Program underway. This program was designed in-house by pooling the knowledge gained by our people, including my personal experiences, over the years. We will now be putting our staff through these training modules, using the facilities of L&Ts Institute for Project Management at Vadodara, to better prepare the organization for the future.

We are also running an ‘Operational Excellence Program’ to enhance our processes for sourcing of materials and services and our systems to manage receivables and working capital. Greater application of technology - digitalization – is being looked at to improve productivity and simplify processes.

We have enough headroom to easily grow our business by at least another fifty percent without adding too many resources and are just waiting for the market to open up.

At this point, we are critically examining every aspect of our business and taking appropriate actions.

Hopefully, we will emerge out stronger!!

Please talk about some of the major ongoing business of LTHE in India and Overseas?

In India, the biggest offshore project we are executing for ONGC is the USD 420 million Bassein Development Project, which is located off the Mumbai coast and involves a gas processing platform, wellheads, and subsea pipelines. The project is expected to be commissioned

by December 2017. In partnership with McDermott, we are also executing the S1 Vashishta deep-water development for ONGC off the East Coast of India.

In the Onshore business segment, we are executing the Melamine project for Gujarat State Fertilizers & Chemicals Limited (GSFC) at Vadodara and a Coke Drum System package for Indian Oil Corporation Limited (IOCL), at IOCL’s Haldia Refinery.

On the international front, we are executing the USD 780 million GC 30 Oil Gathering Centre for Kuwait Oil Company (KOC) in

Kuwait. Recently, in consortium with our partner EMAS Chiyoda Subsea, we won the USD 1.6 billion Hasbah-II Project from Saudi Aramco, which is a very large offshore gas development project in Saudi Arabia. In Oman, we are executing two gas depletion compressor projects (SNDC2 & KDC2) for Petroleum Development Oman (PDO).

What kind of opportunities do you see for LTHE in India?

In the offshore space, ONGC will definitely continue to invest, regardless of the oil prices, because India has a strategic requirement to increase the domestic production of oil & gas.

That being said, ONGC has also managed to declare pretty good results recently and they have also reduced their cost of production.

We are expecting ONGC to move ahead with the KG basin 98/2 deep-water field development sometime in the fourth quarter of this financial year, which will be the major opportunity for us along with smaller projects like Neelam Redevelopment etc.

In the onshore mid & downstream segment, we expect almost INR 10,000 to 15,000 Cr worth of Pipeline projects, for product transportation & distribution, to come up over the near term. We do not see much scope for us in the refinery upgrades, which have been announced, as the PSUs will be utilizing EIL to execute the projects via conventional route.

However, we are hopeful to participate in the development of new grass root refineries which may come up in the near future.

Now that GST bill has been cleared, how do you see the impact on EPC companies?

It is too early to comment on the impact as a lot of the minutiae are yet to be revealed.

However going by basic principles, any simplification is always good for the industry and the country as a whole as it improves efficiency and cuts red tape.

Such simplification may also help international EPC contractors in India, as they will no longer need to navigate the maze of direct and indirect taxes in each state. Overall, I think it will be beneficial for International and Domestic contractors as GST should make it easier to carry out business across the country.

November 2016 • 61

CEW Interview

L&T has invested significant amounts of capital in setting up world-class facilities for hydrocarbon, power, heavy engineering, shipbuilding and defence sectors. But it is a source of frustration for us that the utilization factors of these assets are less than ideal.

out anomalies in the taxation structure and taking some steps to implement a ‘Preferential Pricing’ mechanism which will maximize the utilization of the domestic manufacturing base, provide further encouragement to Indian suppliers and service providers and aid employment generation in the country.

We would be extremely happy if we are able to put these ‘national’ assets to productive use through the ‘Make in India’ campaign.

But at this point of time, in most sectors, L&T is competing openly with foreign players in what is essentially an uneven playing field, as our cost and taxation structures are quite different compared to our foreign peers.

Further, there is no doubt that individual customers will prefer open competition in order to access the best solution.

Hence for the ‘Make in India’ campaign to be a real success, the government has to find a way to create a level playing field by ironing

Ultimately, I believe everyone should take a long-term national view and not restrict ourselves to an individual or company level. I think we are going through this transition process and we need to see how it will pan out.

and the financial wherewithal to execute the project and then address them either inhouse or through collaboration. I must also emphasize that ‘International’ is a very wide term and you need tailor made plans for each country and region as what works in a particular country may not work in another, even within the same region. Evolving into an international contractor has to be a gradual process and every organization has to necessarily traverse this learning curve.

Coming specifically to the Indian context, technical skills is not really an issue as India has the largest technical resource pool in the world. Indian Contractors need a better understanding of international market dynamics, financing and above all they need to get their execution strategy right.

You have extensive experience of executing international projects. In your view, what are the gaps that the Indian EPC companies need to address to be successful in other geographies?

What will be your message to the industry?

As an EPC contractor, when you target a particular project or geography, you need to carefully assess your gaps in terms of technical capability, local domain knowledge,

It is a great opportunity to reflect, introspect and to implement new ideas which could not be done in the past – This is a great time for course correction.

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62 • November 2016

Chemical Engineering World

R.N.I. No. 11403/1966 Date of Publication: 29 th of every month. Postal Registration No: MCS/095/2015-17 Posted at Patrika Channel Sorting Office, Mumbai 400001, on 29th & 30th of every month. Total Pages No.:64