OFFICIAL JOURNAL OF THE INDIAN CHEMICAL COUNCIL
CHEMICAL NEWS VOL. XI z NOVEMBER 2014 z NO. 5
PAGES 96
ANNUAL SUBSCRIPTION RS.1,500/- z PRICE PER COPY RS.150/-
Celebrating
Vision Creativity Commitment Responsibility Growth Excellence Technology Environment Conservation Entrepreneurship
ICC AWARDS 2013
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HON. EDITOR DR. PRAKASH TRIVEDI ADVISORY BOARD: MR. YOGESH KOTHARI MR. RAKESH BHARTIA DR. S. SIVARAM MR. RAJEEV PANDIA MR. SAPAN RAY EDITORIAL BOARD: MR. D. P. MISRA MR. RAVI RAGHAVAN PROF. A. B. PANDIT MS. MALINI HARIHARAN MR. H. S. KARANGLE EDITORIAL, SUBSCRIPTION & ADVERTISING OFFICE: C/O INDIAN CHEMICAL COUNCIL SIR VITHALDAS CHAMBERS 16 MUMBAI SAMACHAR MARG MUMBAI – 400 001 TEL: 022- 22047649/8043 FAX: 022-22048057 E-MAIL : cin@iccmail.in NORTHERN REGIONAL OFFICE: IDA HOUSE, 1ST FLOOR, SEC - IV R. K. PURAM, NEW DELHI - 110 022 TEL: 011-26176689/26192910 EMAIL: iccnro@iccmail.in EASTERN REGIONAL OFFICE: SHANTINIKETAN, 8 CAMAC STREET KOLKATA - 700 017 TEL: 033-22829395 EMAIL: iccero@iccmail.in SOUTHERN REGIONAL OFFICE: KURIAN COMPLEX, III FLOOR 140-A NELSON MANICKAM ROAD CHENNAI - 600 029 TEL: 044-23746326 EMAIL: iccsro@iccmail.in GUJARAT CHAPTER: 30, NUTAN BHARAT SOCIETY 103, LA – CITADEL COMPLEX, ALKAPURI VADODARA - 390 007 GUJARAT TELEFAX: 0265-2342969 EMAIL: iccgujarat@iccmail.in ANNUAL SUBSCRIPTION INLAND – RS. 1,500 FOREIGN – U.S.$ 200 (AIR MAIL) SINGLE COPY – RS. 150
W H AT ’ S I N S I D E 5 EDITORIAL Kailash Satyarthi winning first Nobel Peace Prize in India 6 FROM THE DIRECTOR GENERAL 9 ICC OFFICE-BEARERS 2014-15 New team takes over at ICC 10 PRESENTATION OF ICC AWARDS Prestigious ICC Awards becoming more important by outstanding winners’ acceptance 42 ICC CONCLAVE OF OVERSEAS INDUSTRY ASSOCIATIONS 48 ICC ACTIVITIES 55 ICC GETS FROST & SULLIVAN AWARD FOR NICERGLOBE PROJECT ICC takes a leap forward in increasing safety on chemical transportation 58 DR. STAN HIGGINS’ COLUMN : COATINGS – WORN BUT RARELY 62 GROWING THROUGH PROACTIVE M&A IN INDIAN SPECIALTY CHEMICALS Manish Panchal, Charu Kapoor & Binay Agrawal A big potential opportunity for MNCs awaiting to open up in India. 67 ADDRESSING WORK EXECUTION THROUGH INTEGRATED TECHNOLOGY PROVIDES NEW LEADING INDICATORS TO IMPROVE OPERATIONAL RISK MANAGEMENT - Michael Neill & Scott Lehmann 78 ECONOMIC REVIEW 82 NEWS FROM MEMBERS 86 NEWS NATIONAL 90 NEWS INTERNATIONAL 94 QUOTABLE & LAUGHABLE Make in India and ISRO being on forefront with this philosophy
ICC’s Goal is to have Member-Companies joining the Responsible Care Programme.
The views expressed in the journal are not necessarily those of the Council. VOL. XI NOVEMBER 2014 NO. 5 CHEMICAL NEWS NOVEMBER 2014 z 3
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EDITORIAL
SEASON OF AWARDS
DR. PRAKASH TRIVEDI Honorary Editor
O
ctober month is a season of big awards. Our own ICC awards function initiated it on 30th September with the oldest Sir P. C. Ray award and newest ICC Life Time Achievement award and several other important awards in-between given to the winners at a full house of invitees at Taj Palace Hotel, Mumbai. Hon’ble Minister for Chemicals & Fertilizers, Shri Ananth Kumar, was the Chief Guest and Dr. Anil Kakodkar was the Guest of Honor at this function conferring these awards. A full day seminar, by awardees took place during the day, was inaugurated by Prof. Dr. Devang Khakhar, Director of IIT-B, Mumbai. The following week ushered in no less than Nobel Awards. We started getting Nobel announcements first for the Physiology & Medicine Award, followed by Physics, then Chemistry, followed by Literature and finally Peace. A new Nobel award instituted, which was not part of original Alfred Nobel’s will, is for Economic Sciences, which is always announced last. The Physiology/ Medicine award went for work on cells in hippocampus of brain, which act like GPS indicating where one is at any given moment. The Physics award was won by three Japanese scientists for their work on LED, particularly missing Blue LED, which made it possible to have white LED. The chemistry award was for Optical fluorescence microscopy making nanoscale materials to become ‘visible’.
The Nobel peace prize, conferred by Norway Parliament brought the greatest joy this time to India with our own Kailash Satyarthi sharing it with Malala Yousafzai of Pakistan. Though, Malala’s name went around last year too, Kailash’s name came as a big pleasant surprise. It was probably nominated earlier also and this time allegedly by European Parliament. Generally, one thinks that Nobel Peace prize is awarded to one better known in political circles, but this was certainly not so in Kailash’s case. For this, Norwegian Parliament richly deserves our compliments. To give this prize to an Indian and a Pakistani citizen to share is not atypical of how this prize is awarded over many years now. But we should welcome it – as a Soloman’s justice or Gandhian way - as India and Pakistan are twins but separated at birth by violence, in spite of their birth was possible only due to a long non-violent freedom struggle. No prize can be completely noncontroversial and this year also, it is not surprising that it is not so. Pakistan’s fanatic groups and army are obviously enraged, while Government has shown some happiness but public at large are certainly overjoyed. Malala is a symbol for right & equal treatments for girls and their educational needs in Pakistan and Islamic world. In India, there were murmurs about possible foreign donations to Satyarthi’s Bachpan Bachao Andolan. Some even felt this as an insult to India highlighting plight of children. Luckily, PM Modi’s quick and full endorsement to Kailash Satyarthi’s lifelong work to help reduce Child Labor and to rehabilitate close to 80,000 children have helped to quell the disquiet. There is no doubt that India has produced many giants more deserving this prize than many earlier winners. Mahatma Gandhi, the living example of
nonviolence and peaceful coexistence, is first of such luminaries, who missed out in spite of getting nominated a few times. Many of his followers, including now Satyarthi, have won this award though. Pandit Jawaharlal Nehru, Acharya Vinoba Bhave, possibly Jayprakash Narayan were also well deserving for it. And what about so many unsung heroes, running a million NGOs, doing yeoman’s work on behalf of many more millions of handicapped people in India? The handicap is not just physical or mental but also because of gender, race, casts, creeds, language, religion, and what have you. A balance sheet of welfare related work carried out by our NGOs as against the almost sixty years of Government work will probably show NGOs work more favorably, even though done at micro level. Kailash Satyarthi and his BBA form one of the most inspiring examples of these NGOs, whose work got in to limelight by this award. Will Sewa, Arbindo Netralaya, Narayana Hrudayalay, be the next to be so celebrated? Not getting Nobel award is not so unusual in this world, where for example more scientists are alive and working than the total scientists working for centuries before 20th century. Satyen Bose and Jagdish Chandra Bose are two who come to mind. As with peace awards, literature awards also see some great names being missed out. Leo Tolstoy, James Joyce, Marcel Proust, or recently John Updike was denied. Among living and so still a contender are Indian born C N R Rao and authors like Amitav Ghosh, Vikram Seth and those gifted writers writing in vernacular languages. Interestingly, Kailash Satyarthi has not been awarded even a Padma Award, though he has received many International acclaims. People like him don’t spend their life in chasing awards. But by selecting right candidates and honoring them appropriately, the awards and their bestowers get vindicated themselves, having brought a breath of fresh, inspiring air in the world.
The Nobel Peace Prize was awarded jointly to Kailash Satyarthi and Malala Yousafzai “for their struggle against the suppression of children and young people and for their right of all children to education”. - The Norwegian Nobel Committee. CHEMICAL NEWS NOVEMBER 2014 z 5
FROM THE DIRECTOR GENERAL
H. S. Karangle Director General - ICC
I
CC Awards Presentation Function was held on 30 September 2014 at the Taj Mahal Hotel, Mumbai and was a grand success. More than 200 delegates and industry leaders were present to cheer up the award winners. During the day, Seminar on “Recognizing Excellence of Performance in Various Facets of Chemical Industry” was held in which award winning companies made presentations on their award winning achievements. Hon’ble Minister for Chemicals & Fertilizers, Mr. Ananth Kumar was the Chief Guest and Padma Vibhushan Dr. Anil Kakodkar, Ex-Chairman, Atomic Energy Commission of India was the Guest of Honour. Dr. Anil Kakodkar in the address highlighted contribution of Indian chemical industry and chemical engineers for developing various high grade materials which are used in the national atomic program. Hon’ble Minister for Chemicals
& Fertilizers, Mr. Ananth Kumar during his address reiterated his Government’s commitment to unshackle the chemical industry by providing level playing field and making available feedstocks for further growth of the chemical industry. He asked chemical industry to chart out road map for development and confirmed that his entire Government is with the industry. During ICC Awards Presentation Function and subsequently in INDIA CHEM 2014, ICC had various opportunities to interact with Hon’ble Minister. It was heartening to know that Hon’ble Minister is aware of all the issues which are causing road blocks for accelerated growth of Indian chemical industry. ICC was very happy to note desire of Hon’ble Minister to meet ICC every month to know the progress of Indian chemical industry and any issues faced by the industry. At the end of the ICC Awards Presentation Function, Mr. Yogesh M. Kothari, President of ICC handed over baton of Presidentship to Mr. Rakesh Bhartia, Incoming President of ICC. During the tenure of Mr. Yogesh M. Kothari, Responsible Care Initiative in India has got tremendous boost which can be seen by the considerable increase in Responsible Care signatories as well as RC Logo holders. Mr. Rakesh Bhartia while accepting Presidentship has
The best reason to start an organization is to make meaning, to create a product or service to make the world a better place. 6 z CHEMICAL NEWS NOVEMBER 2014
Government does not create wealth. The major role of the Government is to create an environment where people take risks to expand the job rate. recognized contribution of Mr. Yogesh M. Kothari and reiterated that he along with Mr. Ravi Kapoor, Vice President of ICC will continue to support ICC for greater achievement. Following are other significant initiatives undertaken by the Council in the last month:
INDIA CHEM 2014 HELD AT MUMBAI
INDIA CHEM 2014 : 8th Biennial International Exhibition & Conference” was held on 9 – 11 October 2014 at Bombay Exhibition Centre, Mumbai. INDIA CHEM 2014 was jointly organized by Department of Chemicals & Petrochemicals (DCPC), Government of India and Federation of Indian Chambers of Commerce & Industry (FICCI) with partner associations : ICC & CHEMEXCIL. Hon’ble Shri Ananth Kumar, Minister for Chemicals & Fertilizers, Government of India inaugurated the exhibition. During Inaugural Session, Mr. Nikhil Meswani, Executive Director, Reliance Industries Ltd delivered Key-Note Address (Indian) and Mr. Yoshihiro Umeha, Member of Board & Managing Executive Officer, Mitsubishi Chemical Corporation
delivered Key-Note Address (International). There were also addresses by Mr. Surjit Chaudhary, Secretary-DCPC, Government of India, Mr. Deepak Mehta, Chairman, FICCI National Chemical Committee, Dr. B. R. Gaikwad, Vice Chairman, CHEMEXCIL, Mr. Ghomalreza Ansari, Iranian Ambassador to India. During the CEOs RoundTable organized as a part of INDIA CHEM 2014 on 9 October 2014 which was chaired by Hon’ble Minister. CEOs of leading Indian chemical companies and associations were present. Besides other issues, environment related issue such as public hearing for expansion / new project at existing industrial estate was brought to the notice of Hon’ble Minister. Hon’ble Minister agreed to organize joint meeting between Ministry of Chemicals & Fertilizers and Ministry of Environment, Forests & Climate Change along with ICC representatives. Hon’ble Minister requested to give complete details of all other environment related issues faced by the Indian chemical industry with possible solutions. ICC participated in the INDIA CHEM 2014 Exhibition and the stall set up by ICC was visited by many visitors including Government officials, foreign delegates, representatives of Consulates in Mumbai, entrepreneurs, professors of chemical engineering, students, etc. ICC promoted Responsible Care and its importance for the chemical industry in the stall which was well received by visitors.
ICC CONCLAVE OF OVERSEAS INDUSTRY ASSOCIATIONS
ICC organized Conclave of overseas Industry Associations coinciding INDIA CHEM 2014 on 9 October 2014 at Hotel The Lalit Mumbai. The theme of the Conclave was Responsible Care and Security Code. Representatives of American Chemistry Council, U.S. Department
of State, North East Process Industry Cluster (NEPIC), Bangladesh Chemical Industries Corporation (BCIC), Chemical Industries Council of Malaysia (CICM), Manufacturers’ Association of Israel (MAI), Japan Dyestuff & Industrial Chemicals Association (JDICA) participated in the Conclave. (Detailed report on the Conclave is published in this issue). On 10 October 2014, Mr. Daniel Roczniak, Senior Director, Responsible Care®, American Chemistry Council and other delegates visited Nicer Globe Project of ICC. The office of Nicer Globe Project inaugurated by Mr. Daniel Roczniak located at Kanjur Marg, Mumbai.
MEETING WITH HON’BLE MINISTER FOR ENVIRONMENT, FORESTS & CLIMATE CHANGE AT MUMBAI
Director General and Secretary General of ICC met Hon’ble Minister for Environment, Forests & Climate Change, Mr. Prakash Javadekar on 6 October 2014 at Mumbai and informed him about concerns of the industry especially regarding Public Hearing which has now been made applicable to industries located in notified industrial areas. Hon’ble Minister studied the representation of ICC and assured that an appropriate action will be taken.
CLARIANT INNOVATION CENTRE
CLARIANT has inaugurated its first regional Innovation Centre in India on 7 October 2014 at Navi Mumbai. The new facility of international standard will host approximately 100 technical employees in chemical research and application development. Director General who was present during inauguration requested Dr. Deepak Parikh, Vice Chairman & Managing Director, CLARIANT to make these facilities available to SMEs in chemical sector.
MEETING WITH REPRESENTATIVES OF CLARIANT
Mr. P. A. Murali and Dr. Sunil Deval along with Dr. (Mrs.) Erika Kunz, Head of Global Registration and Evaluation of Chemicals and Dr. Reinhard Kreiling, Head of Evaluation of Chemicals – Toxicology / Ecotoxicology of CLARIANT visited ICC – Mumbai Office on 13 October 2014. Delegates were basically interested in knowing current status of the work regarding preparing inventory of chemical manufacturers in India. It was informed that Ministry of Chemicals & Fertilizers itself is taking initiative for preparing inventory. Earlier CHEMEXCIL has carried out this job and inventory of around 4000 chemicals is prepared.
AWARENESS PROGRAM ON “CHEMICAL WEAPONS CONVENTION”
ICC along with Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Government of India and National Authority organized half-day Awareness Program on “Chemical Weapons Convention” on 16 October 2014 at Nandesari. The program was well attended and response was good.
ONE-DAY INDUSTRIAL SEMINAR ON “EXPANDING AWARENESS OF GREEN CHEMISTRY & GREEN PROCESSES, FOR PLANT & PRODUCTION MANAGERS
ICC in co-operation with GREEN CHEMISTREE FOUNDATION organized One-day Industrial Seminar on “EXPANDING AWARENESS OF GREEN CHEMISTRY & GREEN PROCESSES, FOR PLANT & PRODUCTION MANAGERS” on 16 October 2014 at Hotel Lords Plaza, Ankleshwar, Gujarat. Dr. P. N. Parameswaran Moothathu, Sr. General Manager (ENV.), UPL LTD inaugurated the Seminar and Prof. V. V. Mahajani, Member of the Technology & CHEMICAL NEWS NOVEMBER 2014 z 7
Energy Expert Committee of ICC delivered Key Note Address. Seminar was attended by more than 100 delegates. Members also participated in the exhibition organized parallel to the seminar.
VISIT TO ANSHUL SPECIALTY MOLECULES LTD FOR RESPONSIBLE CARE AUDIT
Secretary General and Director – SHE of ICC visited Anshul Specialty Molecules Ltd. on 16 October 2014 at Roha and recommended to grant permission to use Responsible Care Logo on fast track basis for a period of one year.
ICCA BOARD MEETING AT PARIS
ICCA Board Meeting was held on 16-17 October 2014 at Paris. ICC’s high level delegation consisting of Mr. Rakesh Bhartia, President, Mr. Ravi Kapoor, Vice President, Mr. Yogesh M. Kothari, Past President, Mr. S. K. Ray, Chairman – Trade & Business Development Expert Committee and Mr. Ravi Goenka,
Chairman – Infrastructure Expert Committee of ICC participated in the meeting. ICC was given time slot for making presentation about RC implementation status in India and accordingly forward looking presentation was made highlighting GPS Implementation Plan, Nicer Globe Project, etc. Board of Directors of ICCA were very happy with the progress made by ICC in Responsible Care.
RESPONSIBLE CARE LEADERSHIP GROUP (RCLG) MEETING AT LONDON, UK
Mr. Trimbak Hote, Director – SHE and Mr. Vipin Doshi, Advisor – SHE of ICC participated in Responsible Care Leadership Group (RCLG) Meeting held on 21 – 22 October 2014 at London, UK and made presentation about current status of Responsible Care.
RESPONSIBLE CARE
As on date, 118 member-companies of ICC have signed Responsible Care Initiative. 28 member-companies
have been granted permission to use RC Logo for a period of three years and 7 member-companies have been granted permission to use RC Logo on fast track basis for a period of one year.
FORTHCOMING MEETINGS / CONFERENCES / SEMINARS:
ICC will be organizing/supporting following Meetings / Conferences / Seminars: Half-day Seminar on “Chemical Burns Management – Stopping Incidents from becoming Accidents in API Manufacturing Sites” on 5 November 2014 at Tarapur
1 2
ICC agreed to support International Conference on “Hazmat & Liquid Bulk Cargo” organized by EXIM INDIA PVT. LTD. to be held on 4 December 2014 at Mumbai.
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ICC’s 8th Annual India Chemical Industry Outlook Conference on 3 - 4 March 2015 at Hotel Taj Lands End, Mumbai z
PATRON MEMBERS
LIFE MEMBERS
Aditya Birla Chemicals (India) Ltd.
DCM Shriram Ltd.
Aegis Logistics Limited
Gharda Chemicals Ltd.
Deepak Fertilizers &
Godrej Industries Ltd.
Petrochemicals Corpn. Ltd.
Gujarat Alkalies & Chemicals Ltd.
Deepak Nitrite Limited
Hindustan Unilever Ltd.
Essar Oil Limited
Lubrizol India Pvt. Ltd.
Evonik India Pvt. Ltd.
National Aluminium Co. Ltd.
Haldia Petrochemicals Ltd.
SABIC Innovative Plastics India P. Ltd.
Hikal Limited
Shasun Chemicals & Drugs Ltd.
Rashtriya Chemicals & Fertilizers Ltd.
Thirumalai Chemicals Ltd.
Reliance Industries Ltd. TATA Chemicals Ltd. UPL Limited 8 z CHEMICAL NEWS NOVEMBER 2014
ICC EXECUTIVE COMMITTEE FOR THE YEAR 2014-15 OFFICE BEARERS
PRESIDENT MR. RAKESH BHARTIA CEO India Glycols Limited
Chairman – Western Region DR. ARUP BASU President – New Businesses & Innovation Centre Tata Chemicals Limited
VICE PRESIDENT MR. RAVI KAPOOR Managing Director Heubach Colour Pvt. Ltd.
Chairman – Northern Region DR. S. HARIHARAN Jt. Managing Director Solaris Chemtech Industries Ltd.
Chairman – Southern Region MR. N. KRISHNAMOORTHY Chief Executive – Commercial Chemplast Sanmar Limited
Chairman – Eastern Region MR. BISWANATH CHHATTOPADHYAY Executive Directror & CEO Dhunseri Petrochem & Tea Ltd.
MEMBERS MR. S. B. DUTTA General Manager-Chem. Mktg. Haldia Petrochemicals Ltd.
MR. S. R. MUNDHRA Chairman ARCL Organics Limited
MR. VIJAY SANKAR Dy. Chairman Chemplast Sanmar Ltd.
MR. RAVI GOENKA Managing Director Laxmi Organic Industries Ltd.
MR. KAMAL P. NANAVATY President- Strategy Development Reliance Industries Limited
MR. B. VIVEK SHETTY Chairman Viswaat Chemicals Ltd.
MR. ASHOK M. KADAKIA Chairman & Managing Director Ashok Chem-Pharma International
MR. JANARDHAN RAMANUJALU Chairman SABIC Innovative Plastics India Pvt. Ltd.
MR. SAMIR S. SOMAIYA Chairman & Managing Director Godavari Biorefineries Ltd.
MR. S. R. LOHOKARE Managing Director National Peroxide Limited MR. SUDHIR A. LUTHRA Vice President (CC & SHE) Century Rayon MR. V. T. MOORTHY Director TANFAC Industries Ltd.
MS RAMYA BHARATHRAM Head – New Business Thirumalai Chemicals Ltd. MR. PRADIP R. RATHI Managing Director Sudarshan Chemical Industries Ltd.
MR. V. C. VISHNOI Sr. Vice President-SHE Dishman Pharmaceuticals & Chemicals Ltd. MR. PRAMOD YADAV CEO of Advance Intermediates & Nutritional Products Jubilant Life Sciences Ltd
CHEMICAL NEWS NOVEMBER 2014 z 9
Presentation of
ICC AWARDS 2013
SINGING THE NATIONAL ANTHEM. ON THE DAIS ARE: MR. H. S. KARANGLE, DIRECTOR GENERAL-ICC, MR. YOGESH M. KOTHARI, PRESIDENT-ICC, SHRI ANANTH KUMAR - HON’BLE MINISTER, DR ANIL KAKODKAR, MR. RAKESH BHARTIA, INCOMING PRESIDENT, AND MR. RAVI KAPOOR, INCOMING VICE PRESIDENT, ICC.
T
he prestigious annual Awards of INDIAN CHEMICAL COUNCIL (ICC) for excellence in various categories for the year 2013 were presented to the Winners at glittering function organised at the Tajmahal Palace & Towers, Mumbai on 30th September 2014. Shri Ananth Kumar, Hon’ble Minister for Chemicals & Fertilizers, Government of India was the Chief Guest. Padma Vibhushan Dr. Anil Kakodkar, Former Chairman, Atomic Energy Commission of India was the Guest of Honour at the function which was attended by a galaxy of guests including, captains of Industry and other top level executives from the industry, academia, research 10 z CHEMICAL NEWS NOVEMBER 2014
institutions, and government departments apart from other invited dignitaries. The event commenced with National Anthem followed by the traditional welcome address by Mr. Yogesh M. Kothari, the outgoing President-ICC.
SUSTAINABLE DEVELOPMENT THROUGH RESPONSIBLE CARE Mr. Yogesh Kothari, in his address stressed the need for sustainable development of the industry. “Responsible Care is an ethic and commitment that aims to build confidence and trust,” he noted, while urging industry
HON’B LE MINISTER ADDRESSING THE GATHERING
MR. YOGESH KOTHARI WELCOMING THE HON’BLE MINISTER WITH A BOUQUET OF FLOWERS
DR. ANIL KAKODKAR ADDRESSING THE GATHERING
representatives to embrace its philosophy and practices. 118 of ICC’s members are signatories to Responsible Care, but only 35 companies have been granted permission to use its logo, after undergoing an audit carried out by ICC representatives. Mr. Kothari also pointed out that regulators are now beginning to treat companies that comply with such internationally accepted tenets preferentially. For example, the Gujarat Pollution Control Board is now giving ‘consent to operate’ licenses for seven years (instead of just five) to companies that are Responsible Care certified or compliant to ISO 14001 norms.
“Shortage of natural resources is a phenomenon which is here to stay. Only the ingenuity of chemical engineers can produce the materials that are need in a cost-effective manner through environment-friendly processes that minimize waste,” he observed.
‘CHEMICAL ENGINEERS INSTRUMENTAL IN PROVIDING ACCESS TO ADVANCED MATERIALS’ The Guest of Honour, Dr. Anil Kakodkar, Former Chairman, Atomic Energy Commission, while addressing the audience, highlighted the role of the chemical industry and chemical engineers to the national atomic energy programme, by providing access to critical materials.
PM COMMITTED TO UNSHACKLING GROWTH PROSPECTS OF CHEMICAL INDUSTRY: CHEMICALS MINISTER The Prime Minister, Mr. Narendra Modi, is committed to unshackling the chemical industry, provide it a level playing field and make available feedstock to further its growth. These observations were made by Mr. Ananth Kumar, Minister of Chemicals and Fertilisers, Government of India, who was the Chief Guest at the ICC Awards Function. Mr. Kumar pointed out that the ideas for enabling growth of the industry have been tested in the “crucible of the Indian chemical industry, viz. Gujarat.” The Minister criticised past administrations for not understanding the relevance of the chemical industry and CHEMICAL NEWS NOVEMBER 2014 z 11
A SECTION OF THE GATHERING
not providing adequate incentives of taxes, and creation of infrastructure such as chemical parks. “We will go the last mile to support and encourage the industry.” He urged the industry to chart out a roadmap for development. “The entire government is with the industry,” he added while promising to give ICC representatives two hours of his time every month to address issues of relevance. Mr. Kumar also called for a holistic development of the industry and stressed the linkages between the oil refining and petrochemical industries. In this context, he noted that the government has taken a decision to increase the capacity of the Bina refinery in Madhya Pradesh from 6-mtpa to 15-mtpa, and also set up naphtha-based downstream units at the site. On the controversial issue of ethanol blending of petrol – which the chemical industry has been strongly opposed to – the Minister stated that the issue is a “tricky” one “that will take some time to sort out.” Mr. Rakesh Bhartia, Incoming President of ICC (CEO, India Glycols Limited) and Mr. Ravi Kapoor, Incoming Vice President – ICC (Managing Director – Heubach Colour Pvt. Ltd.) also addressed the august gathering and sought the support of all concerned for their new responsibilities. Then the ICC Awards for 2013 were presented by Mr. Ananth Kumar and Dr. Kakodkar to the winners in several categories. DEVELOPMENT OF INDIGENOUS TECHNOLOGY AVRA Laboratories Pvt. Ltd. : Synthetic route to cancer drug, Irinotecan The ‘ICC Acharya P.C. Ray Award Award for Development of Indigenous Technology’ was conferred on AVRA Laboratories Pvt. Ltd. for developing innovative technologies for synthesis of Irinotecan, a semi-synthetic derivative of the natural product, Camptothecin, used to treat colorectal cancer. Using a 20 step synthesis, AVRA has developed a commercially viable process to produce Irinotecan and 12 z CHEMICAL NEWS NOVEMBER 2014
its intermediates with a higher purity at a lower cost. Conventionally, Irinotecan and its intermediates such as SN-38 is made from Camptothecin, a compound derived through extraction from a plant source – Camptotheca acuminate. This process requires extensive chromatographic separations and relies on some low yielding synthetic steps to yield SN-38 with purity not exceeding 98.5%. AVRA’s technology does not rely on the natural source and the product is made directly from commercially available and inexpensive raw materials. The process allows for the preparation of SN-38, the key intermediate for the synthesis of Irinotecan with a purity of 99.8%. The process is scalable and all concerns related to dependence on plant sources such as seasonal yield, land and time for growth and pesticide residues from soil do not arise. Avra’s process also allows for recovery and reuse of certain reagents and solvents making the process green by minimizing waste. EXCELLENCE IN CHEMICAL PLANT DESIGN & ENGINEERING Gujarat State Fertilizers & Chemicals Ltd: Technology for conversion of HAS solution to crystals Hydroxyl Amine Sulphate (HAS) solution of 26% is manufactured by Gujarat State Fertilizers & Chemicals Ltd. (GSFC) for captive use in synthesis of Caprolactam. After meeting its requirement, surplus HAS is converted crystals, using an indigenously developed process. GSFC has installed 1,200-tpa HAS crystals plant, which serves the Indian market for HAS, which is estimated at between 6,000-tonnes and 7,000 tonnes mainly for making pharmaceuticals, insecticides and for other applications. EXCELLENCE IN MANAGEMENT OF HEALTH/SAFETY/ ENVIRONMENT E.I. DuPont India, Nagarjuna Fertilisers & National Peroxide : Safer and cleaner operations
gas at Kakinada (Andhra Pradesh). The major hazardous material handled includes ammonia, which is produced in-house. The company has storage of ammonia under low temperature and ambient pressure in double-walled storage tanks. The company has a consistent record of reducing consumption of resources. It is one of the top rankers in the fertilizer industry in specific energy and resource consumption per ton of urea. This has been achieved by continuous upgradation of technology. The company has implemented 14 elements of Process Safety Management. Management of change procedure is in place. Near misses and unusual occurrences are being reported and investigated. It
THE MINISTER ARRIVES AT THE FUNCTION
E.I. Dupont India Pvt. Ltd.: The company has three manufacturing sites in India: one at Madurai, Tamilnadu and two at Savli, Gujarat. It has also set up DuPont Knowledge Centre at Hyderabad. DuPont is a Responsible Care committed company and is allowed to use RC logo by ICC, and is also an ISO 14001 certified company. DuPont has established 11 Safety Principles which are followed vigorously: All injuries and illness can be prevented; Management is responsible; All operating exposures can be controlled; Safety is a condition of employment; Training employees to work safety is essential; Audit must be conducted; All deficiencies must be corrected promptly; It is essential to investigate all injuries and incidents; Employee involvement is essential; Off-the-job safety is the important element of the safety effort; and Safety is a good business. As a result DuPont Knowledge Centre achieved five years of injury-free operations; Madurai plant has achieved 13 year of injury-free operations; and Savli plant also achieved 13 years of injury-free operations. Nagarjuna Fertilizers & Chemicals Ltd. (NFCL), established in 1992, manufactures urea from natural
has all the facilities for fire and safety and emergency response. People are trained and regular mock drills and table-top exercise are conducted. Management commitment is of high order and is evident from the fact that safety is at the top most agenda of all the management meetings. National Peroxide Limited (NPL) has implemented Integrated Management System, which includes ISO 14001, ISO 9001, OHSAS 18001 and ISO 50001. A management framework with well-defined structure, roles and responsibilities, group standards, audits, training and third party verification process has further strengthened the level of confidence in HSE management. NPL is Responsible Care committed company. Safety awareness training is given to all employees and contractors for reporting each case of injury, incident & near miss, howsoever small it may be. Each reported case is thoroughly investigated by carrying out Root Cause Analysis (RCA). NPL has recorded 47 Near miss cases in 2013 as compared to 23 in 2012. Since 2011, NPL is consistent in achieving zero Total Reportable Accident Frequency Rate (TRAFR). CHEMICAL NEWS NOVEMBER 2014 z 13
MR. YOGESH KOTHARI, MR. RAKESH BHARTIA, DR. ANIL KAKODKAR AND MR. RAVI KAPOOR.
ENERGY CONSERVATION & MANAGEMENT BHARAT PETROLEUM CORPORATION, MUMBAI REFINERY, ASIAN PAINTS: Conserving energy through better practices: Bharat Petroleum Corporation Ltd. – Mumbai Refinery’s commitment towards energy conservation is reflected in its continuous focus on reducing energy by: z Undertaking power saving and fuel saving initiatives; z Adopting energy efficient design and technology; z Real time monitoring of significant energy parameters; z Supporting procurement of energy efficient products and services; z Introducing innovative approaches for reducing energy consumption; and z Enrolling suppliers and contractors to inculcate a culture of energy consciousness. This is being achieved by having a well defined Energy Policy, establishing an Energy Management System, enrolling all the employees in energy conservation endeavors, inculcating a culture of continual improvement through generation of innovative ideas focused on energy conservation, conducting energy audits to establish energy performance, benchmarking activities with global standards. The energy efficiency is monitored on daily basis and the monthly energy numbers like Specific Energy Consumption (SEC), and Fuel & Loss are compared with the previous best for sustained improvement. Asian Paints Ltd., Phthalic Division Manufacturing of phthalic anhydride involves high temperature oxidation of o-xylene generating large amounts of heat, recovered in the form of 22-bar steam. This is, in turn, used for generating power making the plant self-sufficient on power front. Increasing fuel prices 14 z CHEMICAL NEWS NOVEMBER 2014
has prompted innovative measures to be implemented to remain competitive. Until the year 2000, the contract demand was 1,200-KVA for power and 5,500-m3/day for natural gas. Today, the contract demand for power is only 475-KVA and 3,500-m3/day for natural gas. The steam turbine in operation till 2000 (specific steam consumption of 8.5-kg/kW with 1,085-kW power generation) was replaced in 2000 with improved efficiency of 7.1-kg/ kW with 1,267-kW power generation. This was further upgraded in 2012 by increasing the number of steam stages to increase the efficiency to 6.3-kg/kW, resulting into reduction of steam consumption by 1,000-kg/hr. The excess steam and part of the sensible heat of the superheated steam was recovered in an innovative scheme to achieve over 30% reduction in natural gas consumption. Specific energy consumption per tonne has reduced by 30% in 2013 with reference to 2009. CERTIFICATE OF MERIT for Century Rayon & National Peroxide Century Rayon (Shahad, Maharashtra) manufactures viscose filament yarn, sulphuric acid, carbon disulphide, caustic soda, liquid chlorine, hydrochloric acid and compressed hydrogen. The company has invested about Rs. 144-lakh in 2013 and energy realization is worth Rs. 145-lakh. Century Rayon is committed to energy conservation through zero breakdown approach and is effectively utilizing preventive, corrective and predictive maintenance. This is in combination with technical and administrative actions such as providing in-plant personal training and considerable funding for technologies. This has helped in improving equipment efficiency and reducing scrap rate, minimizing energy usage, optimizing useful life
of equipment, providing reliable cost and budgetary control, identifying and implementing cost reductions and minimizing unexpected breakdowns. National Peroxide Ltd. : As energy costs account for over 20% of production cost for hydrogen peroxide, utmost importance is accorded to energy efficiency and energy conservation. NPL is one of the few companies, which have implemented Energy Management System (ISO 50001:2011) as part of its Integrated Management System. The company has well developed energy plan related to specific measures: z Energy conservation, both at design stage and in operation; z Benchmarking studies; z Innovative changeover to total energy integrated strategy; and
MR. RAKESH BHARTIA WELCOMING DR. KAKODKAR WITH A BOUQUET OF FLOWERS
z Techniques for energy conservation like pinch analysis, modeling using software, etc. The installation of variable frequency drive units, energy efficient oxidiser, UPS system with Super Eco feature & replacement of old equipments with energy efficient equipments has resulted in reduction of power consumption. WATER RESOURCE MANAGEMENT Reducing, reusing & recycling water: Solvay, Essar Oil & LANXESS ESSAR OIL LIMITED Essar Oil’s refinery at Vadinar produces middle distillates like aviation turbine fuel, kerosene oil and high speed diesel, as well as LPG and transport fuels for the domestic and export markets.
Its ETP is designed as a zero discharge facility. Tertiary treatment for ETP wastewater has been provided in the form of RO, and DM water is being produced which reduces the overall requirement of fresh water. No groundwater or surface water is used in the refinery. A dedicated Water Management Cell manages water conservation and reviews the daily report showing the water balance across the refinery. Rainwater harvesting project has been completed and drip irrigation has been adopted in entire refinery and township. LANXESS INDIA PRIVATE LTD. LANXESS India’s notable sustainability achievement at their site in Nagda is in the area of wastewater treatment. This area is water scarce with regard to both residential and industrial consumption. The company has made consistent efforts in improving its water utilization at the site as it consumes high volumes of steam for production. The company has sewage water treatment plant, which treats sewage from colonies around and renders it fit for use in production process. Subsequently, the company commissioned a RO plant to treat the sewage water further and finally accomplished the zero liquid discharge goal through systematic efforts. The zero liquid discharge concept implemented through the wastewater post treatment plant (WWPTP), which was commissioned in November 2012, backed by an investment of Rs. 35-crore. SOLVAY SPECIALITIES INDIA P. LTD. Solvay’s unit, located in Panoli (Gujarat), manufactures range of specialty polymers like polyether sulphone, polyether ether ketone, captive products dichlorodiphenylsulphone and dihydroxy-diphenyl sulphone. The company has committed by the year 2020 to: (a) reduce further by 10% the withdrawal of drinking water and groundwater and, (b) implement a sustainable water management system in entire site under water stress. The site voluntarily adopted ground water remediation based on historical contamination before acquisition. Remediation is done through hydraulic containment, and water is treated and recycled. Besides, a state-of-art waste water treatment facility is installed for treating the effluent streams and recycle them back into the process. This has been able to reduce effluent discharge quantity by 80%. The water treated from both these systems meets stringent water quality requirements such as boiler feed water. Between 2011 and 2013, 2,20,095-m3 groundwater was remediated. The water consumption of major products has come down from 53.28-m3/tonne in 2011 to 51.32-m3/tonne in 2013. In 2013, the company has recycled 1,00,000-m3 water and saved Rs. 28.05-lakh. CHEMICAL NEWS NOVEMBER 2014 z 15
SOCIAL RESPONSIBILITY : Reliance Industries and Ultramarine & Pigments RELIANCE INDUSTRIES LTD. Reliance Industries Ltd. (RIL) has integrated its Corporate Social Responsibility (CSR) around business philosophy to promote inclusive growth. The CSR policy is focused on creating and enhancing value of different assets – human, physical, environment and social. It also encourages employees to carry out voluntary CSR programmes as well. Several initiatives such as infrastructural development & livelihood support, health & hygiene program, promotion of education especially for girl child, sponsoring cultural & social welfare activities, entrepreneur development scheme, etc. has helped to improve overall wellbeing of communities in all their areas of operations. All manufacturing locations are having full-fledged full time CSR Team working under Corporate Affairs directly reporting to Senior Leadership Team who is essentially member of Site Apex Committee. CSR Team consists of village coordinators, agriculturists, social workers, people having expertise in disaster management, professionals having capabilities in health services, sociology, infrastructure planning etc. ULTRAMARINE & PIGMENTS LTD. Ultramarine & Pigments Limited (UPL), located at Ranipet Industrial Complex, about 100 km from Chennai, manufactures inorganic pigments and organic anionic synthetic surfactants. Giving back to the community is considered as necessity and not a choice in the company. Most of the CSR activities of the company are accomplished and continued through its social wing Thirumalai Charitable Trust. The CSR activities mainly include support to schools and students; alcoholism, education and de-addiction; women entrepreneur / self-reliance training; and service to physically challenged. ICC LIFETIME ACHIEVEMENT AWARD 2013 for Mr. C. K. Mehta The Indian Chemical Council conferred the ‘ICC Lifetime Achievement Award’ for the year 2013 on Mr. Chimanlal Khimchand Mehta, Chairman, Deepak Group. Mr. Mehta began his entrepreneurial pursuit at the tender age of 16 years and was both in domestic and international trade for a good 25 years. At the age of 40, he set up his first manufacturing company, Deepak Nitrite Ltd. (DNL) in 1971, which turned profitable in less than two years of 16 z CHEMICAL NEWS NOVEMBER 2014
commencing operations. He then promoted Deepak Fertilisers & Petrochemicals Corporation (DFPCL), a company ten times the size of DNL. Mr. Mehta set an example even in a crisis – when 70% of the plants were closed due to change in government policies, not a single person was asked to leave. The shareholders who lost their dividend were rewarded with a never-before Personal Accident Insurance Cover. ICC D.M.TRIVEDI LIFETIME ACHIEVEMENT AWARD FOR CONTRIBUTION TO INDIAN CHEMICAL INDUSTRY conferred on Mr. D.P. Misra & Dr. M.O. Garg The ICC D.M. Trivedi Lifetime Achievement Award for Contribution to Indian Chemical Industry (Management of Industry) for 2013 was conferred on Mr. D.P. Misra, Director, Development Consultants P. Ltd. Mr. Misra has served the chemical industry for more than fifty years in engineering consultancy organisations, and later as the first Director General of ICC. The ICC D.M.Trivedi Lifetime Achievement Award for Contribution to Indian Chemical Industry (Education & Research) for 2013 was conferred on Dr. M.O. Garg, Director, Indian Institute of Petroleum, Dehradun. Acknowledged and highly respected for providing outstanding scientific leadership to the Indian petroleum refining and petrochemical industry, he has brought IIP to an international level, providing high science based innovations to not only the Indian oil sector, but also to several companies and research institutions globally. Dr. Garg conceived several path breaking research projects, which have resulted into commercially viable technologies. [Dr. Garg could not attend the function to receive the Award due to some exigencies]
Award 2013 The Winners…. ICC ACHARYA P.C. RAY AWARD FOR DEVELOPMENT OF INDIGENOUS TECHNOLOGY AVRA LABORATORIES PVT. LTD., HYDERABAD
ICC AWARD FOR EXCELLENCE IN CHEMICAL PLANT DESIGN & ENGINEERING GUJARAT STATE FERTILIZERS & CHEMICALS LTD., VADODARA
ICC AWARD FOR EXCELLENCE IN MANAGEMENT OF HEALTH / SAFETY / ENVIRONMENT CATEGORY – I: ANNUAL SALES REVENUE ABOVE RS.500 CRORE
E. I. DUPONT INDIA PVT. LTD., GURGAON & NAGARJUNA FERTILIZERS AND CHEMICALS LTD., KAKINADA CATEGORY – II: ANNUAL SALES REVENUE BELOW RS.500 CRORE
NATIONAL PEROXIDE LIMITED, MOHONE, KALYAN, MAHARASHTRA
ICC AWARD FOR EXCELLENCE IN ENERGY CONSERVATION & MANAGEMENT CATEGORY – I: ANNUAL SALES REVENUE ABOVE RS.500 CRORE
BHARAT PETROLEUM CORPORATION LTD., MUMBAI REFINERY CATEGORY – II: ANNUAL SALES REVENUE BELOW RS.500 CRORE
ASIAN PAINTS LIMITED, PANOLI, GUJARAT CERTIFICATE OF MERIT: CENTURY RAYON (DIVN. OF CENTURY TEXTILES & INDUSTRIES LTD.) SHAHAD, MAHARASHTRA CERTIFICATE OF MERIT: NATIONAL PEROXIDE LIMITED, MOHONE, KALYAN, MAHARASHTRA
ICC AWARD FOR WATER RESOURCE MANAGEMENT IN CHEMICAL INDUSTRY CATEGORY – I: ANNUAL SALES REVENUE ABOVE RS.500 CRORE
ESSAR OIL LIMITED JAMNAGAR REFINERY, GUJARAT & LANXESS INDIA PRIVATE LTD., THANE, MAHARASHTRA CATEGORY – II: ANNUAL SALES REVENUE BELOW RS.500 CRORE
SOLVAY SPECIALITIES INDIA PVT. LTD., PANOLI, GUJARAT
ICC AWARD FOR SOCIAL RESPONSIBILITY CATEGORY – I: ANNUAL SALES REVENUE ABOVE RS.500 CRORE
RELIANCE INDUSTRIES LIMITED CATEGORY – II: ANNUAL SALES REVENUE BELOW RS.500 CRORE
ULTRAMARINE & PIGMENTS LIMITED, RANIPET, TAMILNADU
ICC LIFETIME ACHIEVEMENT AWARD MR. CHIMANLAL K. MEHTA, CHAIRMAN, DEEPAK GROUP
ICC D.M. TRIVEDI LIFETIME ACHIEVEMENT AWARD FOR CONTRIBUTION TO INDIAN CHEMICAL INDUSTRY
( MANAGEMENT OF CHEMICAL INDUSTRY ) MR. D. P. MISRA DIRECTOR, DEVELOPMENT CONSULTANTS PVT. LTD.
( EDUCATION & RESEARCH ) DR. M. O. GARG DIRECTOR, INDIAN INSTITUTE OF PETROLEUM, DEHRADUN CHEMICAL NEWS NOVEMBER 2014 z 17
D
ICC ACHARYA P. C. RAY AWARD FOR DEVELOPMENT OF INDIGENOUS TECHNOLOGY - 2013 Conferred on
AVRA LABORATORIES PVT. LTD.
CITATION
r. A. V. Rama Rao founded AVRA LABORATORIES in 1995 after retiring as the Director of the Indian Institute of Chemical Technology (IICT), Hyderabad. With four sites based in Hyderabad and Vizag, it is amongst the first companies in India to focus on high-end contract research, custom synthesis of complex chemicals and difficult to manufacture intermediates and APIs. One example of the innovative technologies developed by Avra is the total synthesis of Irinotecan, a compound with high molecular complexity. This drug is a semi-synthetic derivative of the natural product Camptothecin and used to treat colorectal cancer. Using a 20 step synthesis, Avra has developed a commercially viable process to produce Irinotecan and its intermediates with a higher purity at a lower cost. Conventionally, Irinotecan and its intermediates such as SN-38 is made from Camptothecin, a compound derived through extraction from a plant source – Camptotheca acuminata. This process requires extensive chromatographic separations and relies on some low yielding synthetic steps to yield SN-38 with a purity not exceeding 98.5%. Avra’s technology does not rely on the natural source and the product is made directly from commercially available and inexpensive raw materials. The process allows for the preparation of SN-38, the key intermediate for the synthesis of Irinotecan with a purity of 99.8%. The process is scalable and all concerns related to dependence on plant sources such as seasonal yield, land and time for growth and pesticide residues from soil do not arise. Avra’s process allows for recovery and re-use of certain reagents and solvents making the process green by minimizing waste. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC ACHARYA P. C. RAY AWARD FOR DEVELOPMENT OF INDIGENOUS TECHNOLOGY for the year 2013 on AVRA LABORATORIES PVT. LTD., Hyderabad.
DR. A. V. RAMA RAO, CMD, RECEIVING THE AWARD FROM THE HON’BLE MINISTER.
18 z CHEMICAL NEWS NOVEMBER 2014
G ICC AWARD FOR EXCELLENCE IN CHEMICAL PLANT DESIGN & ENGINEERING - 2013 Conferred on
GUJARAT STATE FERTILIZERS & CHEMICALS LTD.
CITATION
ujarat State Fertilizers & Chemicals Ltd (GSFC) is a joint stock company promoted by Government of Gujarat. Its manufacturing units are located at 4 places with main office at Fertilizer Nagar, Vadodara. The company manufactures Ammonia, Urea, ASP, DAP, Caprolactam, Nylon 6 Chips, Nylon 6 Filament Yarn, Sulphuric Acid, Melamine, etc. GSFC has been manufacturing Caprolactam for a long. Hydroxyl Amine Sulphate solution of 26% is manufactured by GSFC for its captive use in synthesis of Caprolactam in form of aqueous solution, which is integrated part of Caprolactam Complex. After meeting the requirement of captive consumption for production of Caprolactam and MEK Oxime, surplus HAS is to remain which gave an idea for conversion of solution to HAS crystals. India imports 6000 – 7000 MTPY of HAS crystals from different countries to meet the requirement of pharmaceuticals, insecticides and for other applications. As a part of import substitute, GSFC developed a process for producing HAS crystals from 26% HAS solution. It is a completely in-house technology development and GSFC has installed 1200 MTPY capacity HAS crystals plant. HAS crystals in pure form are recovered through eco-friendly and zero pollution processes which comprise steps like Evaporation, Crystallization, Centrifuging, Dissolution, Re-crystallization, Re-centrifuging and Drying. HAS solution containing 280 gm/litre of HAS Sulphate is concentrated to 60% at 90°C. Condensate come out of the process is utilized in dissolution of Crude Crystals. Concentrated HAS is subjected to crystallization at 1-5°C. Crude Crystals are separated and dissolved in condensate to get 50% solution of HAS Crystals. The solution thus obtained is re-crystallized at 1-5°C to get the high purity HAS Crystals. Pure crystals are centrifuged and dried subsequently. Patent had been filed and obtained vide Patent No. 195922 from Government of India in the year 2002. The Basic Engineering Package based on in-house know how was developed by design department of GSFC. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR EXCELLENCE IN CHEMICAL PLANT DESIGN & ENGINEERING for the year 2013 on GUJARAT STATE FERTILIZERS & CHEMICALS LTD., Vadodara, Gujarat.
MR. B. N. BUTALA, OSD (RESEARCH), GSFC, RECEIVING THE AWARD FROM THE MINISTER.
CHEMICAL NEWS NOVEMBER 2014 z 19
E ICC AWARD FOR EXCELLENCE IN MANAGEMENT OF HEALTH /SAFETY/ ENVIRONMENT 2013
[Category-I : Annual Sales Revenue Above Rs.500 crore]
Conferred on
E. I. DUPONT INDIA PVT. LTD.
CITATION
. I. DuPont India Pvt. Limited was established in the year 1994 as a wholly owned subsidiary of US based DuPont. Dupont has been bringing world class science and engineering to the global market place in the form of innovative products, materials and services since 1802. It has 3 manufacturing sites: one at Madurai, Tamilnadu and two at Savli, Gujarat. It has also set up DuPont Knowledge Centre at Hyderabad. DuPont is a Responsible Care Committed Company and is allowed to use RC Logo by ICC. DuPont is also an ISO 14001 certified company. The major products of the company include crop protection products and performance polymers. DuPont has publicly established environmental goals. Its 2015 environmental footprint goals identify opportunities for reducing green house gas emission, water consumption and energy usage. The consumption of various resources has come down substantially. Core values of the company includes Safety & Health, Environmental Stewardship, Respect for people & Highest Ethical Behaviour. DuPont has established 11 Safety Principles which are followed vigorously: All injuries and illness can be prevented; Management is responsible; All operating exposures can be controlled; Safety is a condition of employment; Training employees to work safely is essential; Audit must be conducted; All deficiencies must be corrected promptly; It is essential to investigate all injuries and incidents; Employee involvement is essential; Offthe-job safety is the important element of the safety effort; Safety is a good business. DuPont adheres to the highest standards to ensure the safety and health of employees, customers and the people of the communities in which it operates. As a result DuPont Knowledge Centre achieved 5 years of injury-free operations, Madurai plant has achieved 13 years of injury-free operations and Savli plant also achieved 13 years of injury-free operations. Savli plant has zero discharge facility. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR EXCELLENCE IN MANAGEMENT OF HEALTH / SAFETY / ENVIRONMENT for the year 2013 on E.I. DUPONT INDIA PVT. LTD., Gurgaon, Haryana.
MR. AJAY PANNU & DR. PRAVIN KUMAR SINGH, E.I. DUPONT INDIA RECEIVING THE AWARD.
20 z CHEMICAL NEWS NOVEMBER 2014
N ICC AWARD FOR EXCELLENCE IN MANAGEMENT OF HEALTH / SAFETY/ ENVIRONMENT 2013
[Category-I : Annual Sales Revenue Above Rs.500 crore]
Conferred on
NAGARJUNA FERTILIZERS AND CHEMICALS LTD.
CITATION
agarjuna Fertilizers & Chemicals Ltd. (NFCL) was established in the year 1992 and the plant is located at Kakinada, Andhra Pradesh. NFCL’s annual turnover is above Rs. 5000 Crores. NFCL is ISO 9001, ISO 140001, OHSAS 18001 and RC 14001 certified company. It is also Responsible Care Committed Company and is allowed to use RC Logo by ICC. NFCL manufactures Urea in the range of 4000 – 4500 MTPD from Natural Gas. The major hazardous material handled includes Ammonia which is produced in-house. The company has storage of NH3 under low temperature and ambient pressure in doublewalled storage tanks. NFCL has a consistent record of reducing consumption of resources. It is one of the top rankers in the Fertilizer Industry in specific energy and resource consumption per ton of Urea. This has been achieved by continuous up-gradation of technology. NFCL is a zero discharge site. During the year 2013-14 NFCL has harvested 27000 M3 rain water. It has established Green Belt in the area of 789 acres with about 4,00,000 plants consisting of 170 species. Ambient air is continuously monitored within the premises and up to 15 KM by well equipped mobile van. There is continual reduction in air emission which is much below the State Pollution Control Board limit. Solid waste like spent Catalysts and used Batteries are sent to authorize recyclers. The company has implemented 14 elements of Process Safety Management. Management of change procedure is in place. Near misses and unusual occurrences are being reported and investigated. The Work Permit System is being audited. Training of contract employees is conducted. Good facility for occupational health check-up with full time doctor and male nurses in shifts are available. Health monitoring of all the employees is done. It has all the facilities for fire and safety and emergency response. People are trained and regular mock drills and table-top exercise are conducted. Management commitment is of high order and is evident from the fact that safety is at the top most agenda of all the management meetings. The plant is well laid out, maintenance is excellent with measures taken to ensure mechanical integrity, and housekeeping is of highest order. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR EXCELLENCE IN MANAGEMENT OF HEALTH / SAFETY / ENVIRONMENT for the year 2013 on NAGARJUNA FERTILIZERS AND CHEMICALS LTD., Kakinada.
MR. G.V.S ANAND & MR. DEBASHISH MOHANTY, NAGARJUNA FERTILIZERS RECEIVING THE AWARD.
CHEMICAL NEWS NOVEMBER 2014 z 21
N ICC AWARD FOR EXCELLENCE IN MANAGEMENT OF HEALTH / SAFETY/ ENVIRONMENT 2013
[Category-II : Annual Sales Revenue Below Rs.500 crore]
Conferred on
NATIONAL PEROXIDE LIMITED
CITATION
ational Peroxide Limited (NPL) is a public limited company established in the year 1954. Its manufacturing site is located at Ambivali, Kalyan, Maharashtra. The company manufactures and supplies Hydrogen Peroxide, Sodium Perborate, Per Acetic Acid and Compressed Hydrogen Gas. NPL has implemented Integrated Management System which includes ISO 14001, ISO 9001, OHSAS 18001 and ISO 50001. A management framework with well defined structure, roles and responsibilities, group standards, audits, training and third party verification process has further strengthened the level of confidence in HSE management. NPL is Responsible Care Committed Company. The company has technologically advanced ETP with latest technology of tertiary treatment system consisting of Dissolved Air Floatation, UV Treatment and Reverse Osmosis. Its manufacturing processes are DCS controlled and closely monitored to ensure that environmental emission is under control. Environment monitoring plan for the site is in place. Work room and ambient monitoring is carried out as per the environment monitoring plan by a third party approved by Ministry of Environment & Forests. NPL ensures compliance of all applicable statutory rules & regulations with system in place for monthly evaluation and monitoring. Work Permit system is strictly followed for all jobs in plant to ensure that HSE issues are taken care of before starting the job. The work permits include Cold Work Permit, Hot Work Permit, Confined Space Entry and Working at Height. The company has Fire Hydrant system installed in the plant to handle any emergency condition. The First Aiders along with Fire Crew Team is available in each shift. The other protections include various types of fire extinguishers, Foam sprinklers, Water sprinklers, Fire and Smoke detection systems at locations consistent with risk assessment. Regular mock drills are conducted in the plant. NPL is active member of Mutual Aid Group of local area for any help in case of emergency. Safety awareness training is given to all employees and contractors for reporting each case of injury, incident & near miss, howsoever small it may be. Each reported case is thoroughly investigated by carrying out Root Cause Analysis (RCA). NPL has recorded 47 Near miss cases in 2013 as compared to 23 in 2012. Since 2011, NPL is consistent in achieving zero Total Reportable Accident Frequency Rate (TRAFR). TRAFR includes Medical Treatment cases (MTC), Restricted Work Cases (RWC), Lost Time injury Cases and Fatal Accidents. NPL has well equipped Occupational Health Centre. Health record of all employees and contractors is properly maintained. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR EXCELLENCE IN MANAGEMENT OF HEALTH/SAFETY/ENVIRONMENT for the year 2013 on NATIONAL PEROXIDE LIMITED, Mohone, Kalyan, Maharashtra.
MR. V. K. VALMIKI ALONG WITH HIS COLLEAGUE AT NATIONAL PEROXIDE RECEIVING THE AWARD.
22 z CHEMICAL NEWS NOVEMBER 2014
B ICC AWARD FOR EXCELLENCE IN ENERGY CONSERVATION AND MANAGEMENT - 2013 [Category-I : Annual Sales Revenue Above Rs.500 crore]
Conferred on
BHARAT PETROLEUM CORPORATION LTD.
CITATION
PCL Mumbai Refinery is the flag ship of Bharat Petroleum Corporation and one of the state-of-art refineries of India. The Refinery was commissioned in 1955, by the erstwhile Burmah Shell Refineries Ltd, with a design capacity of processing 2.2 MMTPA of Crude Oil. With the advent of time, through low cost debottlenecking and induction of new technology, this Refinery is currently processing around 13 MMTPA of crude oil. BPCL Mumbai Refinery manufactures a wide range of petroleum / petrochemical products like the LPG, Petrol, Diesel, Kerosene, ATF, Fuel Oil, Lube Oil Base Stock (LOBS), Bitumen, Mineral Turpentine Oil, Naphtha, Benzene, Toluene etc. from various types of crude oil, with specific emphasis on customer satisfaction. BPCL’s complex refining process comprises of Crude/Vacuum units, secondary units such as Crackers/Hydrocracker and treatment units for products such as Merox, HydroDesulfurization, Sulfur Recovery units etc. The Process units are fully automated with microprocessor based DCS and intelligent optimization systems. It is also well connected by pipelines to supply products to consuming centres. BPCL is an ISO: 9001, ISO: 14001, OHSAS: 18001 and ISO: 50001 (Energy Management System) certified company. Refinery’s commitment towards energy conservation is reflected in its continuous focus on reducing energy by undertaking power saving and fuel saving initiatives, adopting energy efficient design and technology, real time monitoring of significant energy parameters, supporting procurement of energy efficient products and services, introducing innovative approaches for reducing energy consumption, enrolling suppliers and contractors to inculcate a culture of energy consciousness. This is being achieved by having a well defined Energy Policy, establishing an Energy Management System, enrolling all the employees in energy conservation endeavors, inculcating a culture of continual improvement through generation of innovative ideas focused on energy conservation, conducting energy audits to establish energy performance, benchmarking activities with global standards. The energy efficiency is monitored on daily basis and the monthly energy numbers like Specific Energy Consumption (SEC), and Fuel & Loss are compared with the previous best for sustained improvement. BPCL Mumbai Refinery’s energy performance has been ranked as second best in the Energy Intensity Index (EII) among all PSU refineries in the country by Centre for High Technology. The company’s Specific Energy Consumption for the last 4 years has reduced considerably from 71.95 (2009-10) to 65.45 (2012-13). Fuel and Loss trend has also reduced considerably during last 5 years (Fuel 6.385 in 2007-08 to 5.98% in 2012-13 and Loss 0.57% in 2007-08 to 0.37% in 2012-13). In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR EXCELLENCE IN ENERGY CONSERVATION AND MANAGEMENT for the year 2013 on BHARAT PETROLEUM CORPORATION LTD., Mumbai Refinery. MR. S. S. SUNDERAJAN & P. K. GAYEN (BPCL) ALONG WITH COLLEAGUES RECEIVING THE AWARD.
CHEMICAL NEWS NOVEMBER 2014 z 23
C ICC CERTIFICATE OF MERIT FOR EXCELLENCE IN ENERGY CONSERVATION AND MANAGEMENT - 2013 Conferred on
CENTURY RAYON
(A Div. of Century Textiles & Industries Ltd)
CITATION
entury Rayon is a private limited company having its manufacturing site at Murbad Road, Shahad. It was established in the year 1956. The company manufactures Rayon Viscose Filament Yarn, Sulphuric Acid, Carbon Disulphide, Caustic Soda, Liquid Chlorine, Hydrochloric Acid and Compressed Hydrogen. The company is ISO 9001, ISO 140001, OHSAS 18001 and RC 14001 certified company. Century Rayon is also a Responsible Care Committed Company and is allowed to use the RC Logo by ICC. Century Rayon is observing 3R Policy i.e. Reduce, Reuse and Recycle. Energy Conservation targets are well planned at the beginning of the year and taken as a mission by each department. The company has invested about Rs. 144 Lakhs in the year 2013 and energy realization is worth Rs. 145 Lakhs. Century Rayon is committed to energy conservation through zero breakdown approach and is effectively utilizing preventive, corrective and predictive maintenance in combination of technical and administrative actions by providing in-plant personal training and considerable funding for technologies which has helped in improving equipment efficiency and reducing scrap rate, minimizing energy usage, optimizing the useful life of equipment, providing reliable cost and budgetary control, identifying and implementing cost reductions and minimizing unexpected breakdowns. The company has a successful track record towards energy conservation and management and its methodology for energy conservation and management has broadly been on: z Setting of Energy conservation Target for the year z Identification of energy conservation opportunities in the plants z Working out techno-commercial proposals for the identified schemes z Submission of the proposal for the approval of management z Implementation of scheme and monitoring for achieving projected savings z Exploring the possibility of Reuse, Reduce, Recycle the waste. These activities are carried out throughout the year & monitored by a committee constituted for the purpose under a designated Energy Manager. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC CERTIFICATE OF MERIT FOR EXCELLENCE IN ENERGY CONSERVATION AND MANAGEMENT for the year 2013 on CENTURY RAYON (A Div. of Century Textiles & Industries Ltd.), Shahad, Maharashtra.
MR. O. R. CHITLANGE & MR. S. A.LUTHRA OF CENTURY RAYON RECEIVING THE AWARD ALONG WITH THEIR COLLEAGUES.
24 z CHEMICAL NEWS NOVEMBER 2014
A ICC AWARD FOR EXCELLENCE IN ENERGY CONSERVATION AND MANAGEMENT - 2013 [Category-II : Annual Sales Revenue Below Rs.500 crore]
Conferred on
ASIAN PAINTS LIMITED Phthalic Division
CITATION
sian Paints Limited is a public limited company established in the year 1990. Its Phthalic Anhydride Division, with a plant capacity of 25000 MT per annum, is located at Ankleshwar, Gujarat. The unit is certified under ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007, and is currently evaluating Energy Management System Certification under ISO 50001. The Phthalic Division has well laid Energy Management System and the main features are: z Energy generation, distribution and consumption is monitored daily, monthly and annually. z Any deviation in energy consumption is recorded, reported and actions are taken to restore it z Energy Cell has been formed z Major energy saving projects are taken as required and executed in time z Load survey and energy audit is conducted regularly Manufacturing of Phthalic Anhydride involves high temperature oxidation of Ortho Xylene generating large amounts of heat, recovered in the form of 22 bar steam. This is in turn used for generating power making the plant self-sufficient on power front. Increasing fuel prices – both NG & Diesel (162% & 88% increase, respectively, in last 4-5 years) has prompted innovative measures to be implemented to remain competitive. Until the year 2000, the contract demand was 1200 KVA for power and 5500 M3/ day for natural gas. Today, the contract demand for power is only 475 KVA and 3500 M3/ day for natural gas. The steam turbine in operation till 2000 (specific steam consumption of 8.5 Kg/KW with 1085 KW power generation) was replaced in 2000 with improved efficiency of 7.1 Kg/KW with 1267 KW power generation. This was further upgraded in the year 2012 by increasing the number of steam stages to increase the efficiency from 7.1 Kg/KW to 6.3 Kg/KW resulting into reduction of steam consumption by 1000 Kg/hr. Simultaneous improving pump efficiencies, use of energy efficient lighting and VFDs enabled reduction in the operating load from 1200+ kW to 1160 kW. The excess steam and part of the sensible heat of the superheated steam was recovered in an innovative scheme to achieve over 30% reduction in Natural Gas consumption. Specific energy consumption per MT has reduced by 30% in 2013 with reference to 2009. Total equivalent CO2 emission in MT per annum is reduced by 923 MT (over 30%) in 2013 as compared to 2009. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR EXCELLENCE IN ENERGY CONSERVATION AND MANAGEMENT for the year 2013 on ASIAN PAINTS LIMITED, Phthalic Division, Ankleshwar, Gujarat.
MR. I. K. JAISWAL & SUNEEL ALSHI, ASIAN PAINTS, RECEIVING THE AWARD.
CHEMICAL NEWS NOVEMBER 2014 z 25
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ICC CERTIFICATE OF MERIT FOR EXCELLENCE IN ENERGY CONSERVATION AND MANAGEMENT - 2013 Conferred on
NATIONAL PEROXIDE LIMITED
CITATION
ational Peroxide Limited (NPL) is a public limited company established in the year 1954. Its manufacturing site is located at Ambivali, Kalyan. The company manufactures and supplies Hydrogen Peroxide, Sodium Perborate, Per Acetic Acid and Compressed Hydrogen Gas. NPL has implemented various management systems which include ISO 14001, ISO 9001, OSHAS 18001 and ISO 50001. NPL is also a Responsible Care Committed Company. The company has well developed energy plan related to specific measures viz. z Energy conservation both at design stage and in operation z Benchmarking studies carried out z Innovative changeover to total energy integrated strategy z Techniques use for energy conservation like pinch analysis, modelling using software, etc. The installation of Variable Frequency drive units, Energy Efficient Oxidiser, UPS system with Super Eco feature & Replacement of old equipments with energy efficient equipments, has resulted in reduction of power consumption. The company has continued to carry out the accounting of its Greenhouse Gas (GHG) emissions, also known as Carbon Foot Print i.e. assessment and inventorization of GHG emissions. NPL has separated its GHG emissions for Hydrogen and Hydrogen Peroxide production. The company has submitted its plant information to International Organization of Standardization. This appears by way of example of energy review in ISO 50004. This is considered as a great technical achievement for the company. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC CERTIFICATE OF MERIT FOR EXCELLENCE IN ENERGY CONSERVATION AND MANAGEMENT for the year 2013 on NATIONAL PEROXIDE LIMITED, Mohone, Kalyan, Maharashtra.
MR. M. J. SHAH AND COLLEAGUES, NATIONAL PEROXIDE LTD RECEIVING THE CERTIFICATE OF MERIT
26 z CHEMICAL NEWS NOVEMBER 2014
E ICC AWARD FOR WATER RESOURCE MANAGEMENT IN CHEMICAL INDUSTRY - 2013
[Category-I : Annual Sales Revenue Above Rs.500 crore]
Conferred on
ESSAR OIL LIMITED
Jamnagar Refinery
CITATION
ssar Oil Limited is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration & production to refining and oil retail outlets. Essar Oil owns India’s second largest single site refinery with a capacity of 20 MMTPA having Nelson Complexity of 11.8, which is amongst the highest globally. Further, Essar is enhancing its capacity to 36 MMTPA and diversifying into the manufacture of petrochemicals. Its refinery at Vadinar produces middle distillates like aviation turbine fuel, kerosene oil and high speed diesel, as well as LPG and transport fuels conforming to Euro III, Euro IV and Euro V product quality standards for the domestic and export markets. High automation, the latest technology and an ideal location on India’s west coast give the company significant competitive advantages. The refinery is supported by an end-to-end infrastructure setup including SBM (Single Buoy Mooring), crude oil tankage, water intake facilities, demineralization & desalination plants, captive power plant, product storage and dispatch facilities by sea, rail, road and pipelines for both liquid products and LPG. Company has its own Essar Refinery Integrated Management System (ERIMS). The company is ISO 14001, ISO 9001, OSHAS 18001 and ISO 50001 certified. Its ETP is designed on zero discharge facility. Tertiary treatment for ETP waste water has been provided in the form of RO and DM water quality is being produced which is also reducing down the overall requirement of fresh water. No ground water or surface water is used in the Refinery. A dedicated Water Management Cell has been made to manage the water conservation and it reviews the daily report showing the water balance across the refinery and is being issued to Top Management. Rain water harvesting project has completed for 200000m3 near the truck loading area of the refinery. Also two existing sea water reservoirs converted for rain water harvesting with capacity of 175000m3. The company has also adopted drip irrigation method for water conservation in entire refinery and township. As a part of social obligation, company understands its responsibility to contribute to the communities and economies of the area in which it operates. Essar Foundation has initiated many water harvesting projects in the adjoining villages. The company has undertaken the study of measuring “water footprint” which might be the first of its kind exercise in the oil and gas industry and to figure out the blue / green and grey water footprint of the organization and to measure the water efficiencies of its key processes. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR WATER RESOURCE MANAGEMENT IN CHEMICAL INDUSTRY for the year 2013 on ESSAR OIL LIMITED, Jamnagar Refinery, Vadinar, Gujarat.
MR. DHAVAL DESAI, ESSAR OIL, RECEIVING THE AWARD
CHEMICAL NEWS NOVEMBER 2014 z 27
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ICC AWARD FOR WATER RESOURCE MANAGEMENT IN CHEMICAL INDUSTRY – 2013
[Category-I : Annual Sales Revenue Above Rs.500 crore]
Conferred on
LANXESS INDIA PVT. LTD.
CITATION
ANXESS India Private Limited, established in the year 2004, is a wholly owned subsidiary of LANXESS Deutschland GmbH. It has manufacturing sites at Nagda in Madhya Pradesh and Jhagadia in Gujarat. The company manufactures and supplies performance polymers, advanced intermediates and performance chemical products. Its products are used in automobiles, pharmaceuticals, dyestuffs, flavours, fragrances and coatings, etc. One of the notable sustainability achievements at their site in Nagda is in the area of waste water treatment. This area is water scarce with regard to both residential and industrial consumption. The company has made consistent efforts in improving its water utilization at the site as it consumes high volumes of steam for production. The company has sewage water treatment plant, which treats sewage from colonies around and renders it fit for use in production process. Subsequently, the company commissioned a RO plant to treat the sewage water further and finally accomplished the Zero Liquid Discharge goal through systematic efforts. The zero liquid discharge concept implemented through the waste water post treatment plant (WWPTP) which was commissioned in November 2012, backed by an investment of Rs.35 crore. The WWPTP, built with exotic construction materials, treats discharge from the existing ETP in a manner that virtually no liquid effluents are discharged from the site. The company has treated a total volume of 51389 KL water through Waste Water Post Treatment (WWPT) in 2013 as compared to 16344 KL in 2012. The volume of water recycled and recovered through WWPT – RO system is 170884 KL in 2013 as compared to 38459 KL in 2012. The recovery has steadily improved since old RO reject is fed again into the WWPT. The net volume of water recovered and recycled through WWPT – Evaporator system is 29298 KL as compared to zero recovery in the previous years. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR WATER RESOURCE MANAGEMENT IN CHEMICAL INDUSTRY for the year 2013 on LANXESS INDIA PRIVATE LIMITED.
MR. N. ROY CHOUDHURY & MR. SUBHAT KUMAR JINDAL RECEIVING THE AWARD
28 z CHEMICAL NEWS NOVEMBER 2014
S ICC AWARD FOR WATER RESOURCE MANAGEMENT IN CHEMICAL INDUSTRY - 2013
[Category-II : Annual Sales Revenue Below Rs.500 crore]
Conferred on
SOLVAY SPECIALITIES INDIA PVT. LTD.
CITATION
olvay Specialities India Pvt. Ltd. is a 100% subsidiary of Solvay Group incorporated in the year 2005. It enhanced its India presence through acquisition of Polymer business of Gharda Chemicals Ltd. in the year 2006. The unit is located in Panoli, Gujarat, and manufactures range of specialty polymers like Poly Ether Sulphone, Poly Ether Ether Ketone, captive products Di-Chloro Di-Phenyl Sulphone and Di-Hydroxy Di-Phenyl Sulphone. These polymers find application in automotive components, oil & gas Components, coatings, cookware, water purification membranes, aerospace and healthcare. Solvay is firmly committed to sustainable development and focused on innovation and operational excellence especially in the area of Health, Safety and Environment. The unit has ISO 9001:2008, 14001:2004 & OHSAS 18001:2007 management systems. Solvay has committed by the year 2020 to (a) reduce further by 10% the withdrawal of drinking water and groundwater and, (b) implement a Sustainable Water Management system in entire site under water stress. The site voluntarily adopted the ground water remediation based on historical contamination before acquisition. Remediation is done through hydraulic containment, and water is treated and recycled. Besides, a state-of-art waste water treatment facility is installed for treating the effluent streams and recycle them back into the process. This has been able to reduce effluent discharge quantity by 80%. The water treated from both these systems meets stringent water quality requirements such as boiler feed water. Between 2011 and 2013, 2,20,095M3 ground water was remediated. The water consumption from of major products has come down from 53.28 M3/T in 2011 to 51.32 M3/T in 2013. In the year 2013, it has recycled 1,00,000M3 water and saved Rs.28.05 Lakhs. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR WATER RESOURCE MANAGEMENT IN CHEMICAL INDUSTRY for the year 2013 on SOLVAY SPECIALITIES INDIA PVT. LTD., Panoli, Gujarat.
DR. PRAKASH RAMAN & MR. S. SANKARANARAYANAN RECEIVING THE AWARD AND CITATION.
CHEMICAL NEWS NOVEMBER 2014 z 29
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ICC AWARD FOR SOCIAL RESPONSIBILITY 2013
[Category-I : Annual Sales Revenue Above Rs.500 crore]
Conferred on
RELIANCE INDUSTRIES LIMITED
CITATION
eliance Industries Limited is India’s largest private sector conglomerate and a Fortune Global 500 company with business in the energy and materials value chain. Reliance has pursued the strategy of backward vertical integration – in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production to be fully integrated along the material and energy value chain. Group’s annual revenues are in excess of US $ 74 billion with its activities spanning exploration and production of oil and gas, petroleum refining and marketing, petrochemicals, textiles and retail. During the period April 2012 to March 2013, some of the projects undertaken by the company in the neighbouring villages includes Safe Motherhood Initiative, Tuberculosis Control Initiative, HIV/AIDS Combat Initiatives, Blindness Control through Drishti Project, Annual health Support activities like Padyatri Seva Shibir, Kanya Kelvani Abhiyan consisting of school kits distribution for increasing enrolment of girl child, Training & support to the local youth to increase employability. Large numbers of activities are also undertaken for total welfare and upbringing of children including Save Girl Child, Project Bal Kalyan & Project Gift for HIV afflicted children, Care & Support for Malnourished children – Project Shishumangalam, Healthy Baby initiative, Pulse Polio camp etc. The company has enthused development of Sports through its activities throughout India. It has also successfully implemented social activities like Fodder support for livelihood - Project Gaushala, Building Social Institution for community bonding, educational activities with added emphasis on girl child, infrastructure development, promotions of Social & cultural welfare. Major CSR initiatives of RIL are spread in the close proximity & peripheral villages of all manufacturing divisions covering lakhs of people but initiatives through Reliance Foundations, Dhirubhai Ambani Foundation and other charitable institutions covers wider geographies & communities beyond the areas of their operation. All manufacturing locations are having full-fledged full time CSR Team working under Corporate Affairs directly reporting to Senior Leadership Team who is essentially member of Site Apex Committee. This Committee meets on daily basis and all the issues relating to business and community welfare are suitably addressed in accordance with the spirit of corporate CSR Policy. CSR Team consist of village coordinators, agriculturists, social workers, people having expertise in disaster management, professionals having capabilities in health services, sociology, infrastructure planning etc. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR SOCIAL RESPONSIBILITY for the year 2013 on RELIANCE INDUSTRIES LIMITED. MR. SANJEEV KUMAR GUPTA, GEN. MANAGER-CORPT. AFFAIRS, RECEIVING THE AWARD
30 z CHEMICAL NEWS NOVEMBER 2014
U ICC AWARD FOR SOCIAL RESPONSIBILITY 2013
[Category-II : Annual Sales Revenue Below Rs.500 crore]
Conferred on
ULTRAMARINE & PIGMENTS LTD.
CITATION
ltramarine & Pigments Limited (UPL) is located at Ranipet Industrial Complex about 100 km from Chennai. The Company manufactures Inorganic Pigments and Organic Anionic Synthetic Surfactants. Giving back to the community is considered as necessity and not a choice in the company. Most of the CSR activities of the company are accomplished and continued through its social wing Thirumalai Charitable Trust. CSR activities mainly include: z Support to schools and students: UPL creates cleanliness awareness program in many rural Government schools and built sanitary blocks for girls, higher secondary schools at Ranipet. It distributes books and conducts awareness program as a part of Environmental Day Celebration. z Industry Institute Partnership: Informative classes to students of local schools and colleges are conducted providing them additional knowledge of subject of importance to them. z Alcoholism, Education and De-addiction: Under this program, 33 alcoholics were treated by TTK Hospital through Ultramarine and Pigments Ltd. z Women Entrepreneur / Self Reliance Training: Entrepreneur training at women’s college has been conducted in the areas of animal husbandry, small businesses, manufacturing of small materials, handwork and trading. z Service to Physically Challenged: The comprehensive rehabilitation and counselling centres provides physiotherapy, surgery assistance and distribute assistive devices. From April 2012 – March 2013 it has treated more than 25000 patients which include 113 surgeries. In recognition of the above, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC AWARD FOR SOCIAL RESPONSIBILITY for the year 2013 on ULTRAMARINE & PIGMENTS LIMITED, Ranipet, Tamilnadu.
MRS. BHOOMA PARTHASARATHY AND MRS. INDIRA SUNDARARAJAN RECEIVING THE AWARD AND CITATION
CHEMICAL NEWS NOVEMBER 2014 z 31
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ICC D.M. TRIVEDI LIFETIME ACHIEVEMENT AWARD FOR CONTRIBUTION TO INDIAN CHEMICAL INDUSTRY
(For Management of Industry)
Conferred on
MR. D. P. MISRA,
FNAE, FIChemE, FIIChE, FIE Director, Development Consultants Pvt. Ltd.
CITATION
urga Prasanna Misra is a first class Chemical Engineering graduate from Jadavpur University and a Post Graduate Diploma holder in Petroleum Refining and Petrochemicals from Indian Institute of Petroleum, Dehradun. During his fifty years with the Chemical Industry, his major experience has been in Engineering Consultancy Organisations serving the Indian Chemical Industry. During his initial years with Krebs and Cie India Pvt. Ltd, he was instrumental in executing Projects with First Time Technologies for India, such as Continuous Leaching, Purification and Electrolysis of Zinc and Cadmium for Hindustan Zinc, Manufacture of Phosphoric Acid by Hydrochloric Acid Route for Ballarpur Industries at Karwar, Neolyte Pickling of Stainless Steel for Salem Stainless Steel Plant and Chlorine Dioxide plants at Nowgong and Cachar for Hindustan Paper Corporation. His tenure of 15 years as Dy. Managing Director at Jacobs Engineering witnessed substantial growth and diversification of the organisation including stand alone Centre for Pharma Projects at Delhi. During his tenure as Director, Tata Consulting Engineers underwent substantial growth and diversification to Petroleum Refining and Petrochemicals. His contribution to the Indian Chemical Industry was visible when he worked as the first Director General of Indian Chemical Council. During his tenure Indian Chemical Council was vibrant with large number of Seminars in the areas of REACH, Responsible Care速, Chemical Weapons Convention and several sectors of Chemical Industry. He represented the Indian Chemical Industry in various International Seminars at Singapore, Manila, Paris and China besides Chemical Weapons Convention at the Hague. He was instrumental in organising World Chlorine Council Conference and World Coal to Liquid conference at Delhi. CHEMICAL NEWS, the monthly publication of Indian Chemical Council, witnessed significant prominence with High Quality contents during his Editorship. Mr. Misra was the President of Indian Institute of Chemical Engineers during the year 2004 when CHEMCON 2004 witnessed a joint session of Indian Institute of Chemical Engineers and American Institute of Chemical Engineers at Mumbai in 2004. In 2008 at Birmingham, Institute of Chemical Engineers elected Mr. Misra as Fellow. Later he was elected as Fellow by Indian National Academy of Engineering. Mr. Misra was a member of the Committee set up by Indian National Academy of Engineering which submitted Report on the Impact of R&D in Indian Chemical Industry to Principal Scientific Adviser to Government of India in April 2011. He served as member of the Board of MR. D. P. MISRA RECEIVING THE LIFETIME ACHIEVEMENT AWARD Governors of Engineering Council of India. His contribution to Academia includes Professor G. P. Kane visiting Professorship at Institute of Chemical Technology during the year 2003 and INAE Distinguished Professorship of Chemical Engineering at D. J. Sanghvi Engineering College at Mumbai during 2013-14. He has written and delivered more than 50 lectures in India and abroad. In recognition of his outstanding contributions, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC D.M.TRIVEDI LIFETIME ACHIEVEMENT AWARD FOR CONTRIBUTION TO INDIAN CHEMICAL INDUSTRY (Management of Industry) for the year 2013 on MR. D. P. MISRA, Director, Development Consultants Pvt. Ltd.
32 z CHEMICAL NEWS NOVEMBER 2014
ICC D.M. TRIVEDI LIFETIME ACHIEVEMENT AWARD FOR CONTRIBUTION TO INDIAN CHEMICAL INDUSTRY
D
CITATION
R. M. O. GARG is a gold medallist of Nagpur University standing first in B.Tech (Chemical Engineering) from Laxminarayan Institute of Technology (LIT), Nagpur. He is the first 10 pointer obtaining A grades in all courses in M.Tech. from IIT Kanpur. He completed his Ph.D. with world authority Prof. H.R.C. Pratt at University of Melbourne, Australia in the area of solvent extraction. Returning to India, he joined Engineers India Limited where he used his expertise to develop and commercialise 18 technologies related to solvent extraction in the refining and petrochemical industry. In addition to (Education & Research) solvent extraction, he has been the first in India to implement advanced process control and energy conservation using Pinch technology in oil refining industry. He has also made Conferred on significant contributions in developing innovative and advanced application of simulation DR. M. O. GARG and modelling and data reconciliation. Director, Indian Institute of Dr. Garg is currently the Director of the CSIR-Indian Institute of Petroleum, a constituent Petroleum, Dehradun laboratory of CSIR. Acknowledged and highly respected for providing outstanding scientific leadership to the Indian petroleum refining and petrochemical industry, he has brought the Indian Institute of Petroleum to an international level providing high science based innovations to not only the Indian oil sector but also to several companies and research institutions globally. Recognising the growing need of alternative energy and conservation of precious hydrocarbon resource, Dr. Garg conceived several path breaking research projects which have resulted into commercially viable technologies; some of these have already been commercialised. Hydroconversion of non edible vegetable oil to Biojet meeting all jet fuel specifications, catalytic conversion of waste plastic to gasoline and diesel, bio cutting lubricant, low cost conversion of fuel oil to diesel, advanced technology for wax production are few examples which are recognised as milestones today of cutting edge Indian technologies. Known for his unique ability to take research projects from concept to commissioning, he is perhaps one of the very few in the world who can bring high science to the industry and pursue the same with extraordinary vision, initiative and continued perseverance, against all odds including severe international competition. The recent success in commercialising the technology for recovery of pure benzene from FCC gasoline in a large private refinery in India will always be an example for others to follow. This is the first unit of its kind in the world. He has been bestowed with several prestigious awards including the CSIR Shield for his commercialization efforts; Alkyl Amines Prof. B. D. Tilak Chemcon Distinguished Speaker Award; C. K. Murthy Memorial Lecture Speaker Award; Prof. R. A. Rajadhyaksha Memorial Lecture Award. During his illustrious academic career he has bagged several awards: Institute Studentship, LIT Alumni Association Prize in B.Tech, NELP Gold Medal in B.Tech, Mahadeo Dajiba Memorial Silver Medal and Adjudged Best Ph.D. Student by University of Melbourne. He is the most respected invited speaker in all prestigious conferences and forums related to the oil sector. Under his leadership over the last 10 years, the Institute has won several prestigious awards namely: National Award for Technology Innovation (2013); OCCEANTEX 2012 Leadership and Excellence Award; CSIR Technology Award (1999, 2000, 2001 & 2007) and Most Admired Organization in Oil & Gas Sector (2013). Being himself a scientific leader with strong academic interests, he initiated two post graduate programmes and expanded the doctorate programme as well the flagship training courses being given by the institute to the refining industry. The institute now has a vibrant culture for research and applied academic training with 40 Ph.D students and M.Tech programmes in Applied Petroleum Science and Technology and Advanced Automotive Technology, besides, around 500 officers from industry getting trained every year in advanced topics of interest to the oil industry. In all of these courses, Dr. Garg himself delivers lectures which are highly acclaimed and appreciated. To quote the leader of SABIC after one of his lectures: “Dr. Garg has a heart of a teacher along with great practical knowledge, a combination which is rare and valuable.� Dr. Garg has been the author of 245 papers published in high impact refereed scientific journals and has 33 national and international patents to his credit. He is an elected Fellow of the prestigious Indian National Academy of Engineering. Overall Dr. Garg, an outstanding chemical engineer and has been an exemplary leader who believes in leading by example. In recognition of his yeomen services to education, research, industry and profession, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC D. M.TRIVEDI LIFETIME ACHIEVEMENT AWARD FOR CONTRIBUTION TO INDIAN CHEMICAL INDUSTRY (Education & Research) for the year 2013 on DR. M. O. GARG, Director, Indian Institute of Petroleum, Dehradun. CHEMICAL NEWS NOVEMBER 2014 z 33
CITATION
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ICC LIFETIME ACHIEVEMENT AWARD 2013 Conferred on
MR. CHIMANLAL KHIMCHAND MEHTA
Chairman, Deepak Group
34 z CHEMICAL NEWS NOVEMBER 2014
m not rich, but I’m resourceful!” These are the words that empowered Mr. C. K. Mehta to create an empire called Deepak Group. He began his entrepreneurial pursuit at the tender age of 16 years and was both in domestic and international trade for a good 25 years. At the age of 40, he set up his first manufacturing company, Deepak Nitrite Limited (DNL) in 1971. DNL turned profitable in less than two years of commencing operations and was the recipient of the Acharya P.C. Ray Award for the best indigenous technology. By its fifth year in business, it declared a bonus; by the 8th year another bonus and in the 10th year promoted Deepak Fertilisers & Petrochemicals Corporation (DFPCL), a company ten times the size of DNL. Within 5 years, DFPCL drew up a plan to grow almost 8 times again and created history by having the Mahadhan public issue. The largest public issue, only after Reliance at that time, added 2 lakh shareholders. Mr. Mehta set an example even in a crisis - when 70% plants closed due to change in government policies, during the survival struggle, not a single person was asked to leave. The shareholders who lost their dividend were rewarded with a never-before Personal Accident Insurance Cover, creating history by being the largest cover provided by an Insurance Company, with a value of Rs. 10,000 Crore for personal accident. Moving mountains when society needed it the most, he set out to re-establish an end-to-end Animal Husbandry business in Amreli Dist., Gujarat, which was wiped out in floods in the past one year. He created the largest program for reduction in women and child mortality rate, working with 150,000 families in rural Gujarat. His work won several laurels, such as the FICCI award at the hands of the then Honorable Prime Minister, Mr. I. K. Gujral in the year 1997 for Family Welfare; the CII Women Exemplary Award in 2009; the World Bank Awards for Innovative Projects in 2009; the best CSR performance award by FICCI in December 2012 and the similar award by ICC in 2013. At 82, he continues to be the inspiring force. Many initiatives – whether in education or healthcare, continue to receive MR. CHIMANLAL K. MEHTA, RECEIVING THE LIFETIME ACHIEVEMENT AWARD his support. At the same time, humility and simplicity have remained his forte. Mr. Mehta is a great role model for an entrepreneur who dares to dream big - be it in industry or in service towards the society - and achieve these dreams. In recognition of his outstanding contributions, INDIAN CHEMICAL COUNCIL is pleased to confer the ICC LIFETIME ACHIEVEMENT AWARD for the year 2013 on MR. CHIMANLAL KHIMCHAND MEHTA, Chairman, Deepak Group.
Seminar on RECOGNIZING EXCELLENCE OF PERFORMANCE IN VARIOUS FACETS OF CHEMICAL INDUSTRY
MR. YOGESH KOTHARI, PRESIDENT-ICC WELCOMING DR. DEVANG KHAKHAR WITH A BOUQUET OF FLOWERS.
L
ike previous years, this year also ICC organized a Seminar on RECOGNIZING EXCELLENCE OF PERFORMANCE IN VARIOUS FACETS OF CHEMICAL INDUSTRY� featuring the achievements of the companies winning the 2013 ICC Awards in various categories. The Seminar was organised on 30th September 2014, as a prelude to the ICC Awards Presentation function which was held at Taj Mahal Palace & Towers, Mumbai, on the same evening. Dr. Devang Khakhar, Director and Professor of Chemical Engineering, Indian Institute of Technology (IITBombay), was the Key-note Speaker at the well-attended seminar.
DR. DEVANG KHAKHAR DELIVERING THE KEY-NOTE ADDRESS
Mr. Yogesh M. Kothari, President-ICC, while welcoming the Keynote Speaker and the delegates at the Seminar, congratulated the award winners for the achievements for which the Awards have been conferred up on them. Dr. Dewang Khakhar, while delivering the Key-note address, complemented ICC for these important ICC awards recognising excellence in Chemical Industry and making possible the sharing of good practices by award winning companies with others through this seminar. He stated that Chemical Companies are now becoming quite competitive and are able to operate at the cutting edge of technology in India today. While Electronics and Chemical industries were at
A PART VIEW OF THE DELEGATES
CHEMICAL NEWS NOVEMBER 2014 z 35
TECHNICAL SESSION -1. ON THE DAIS ARE: MR. G.V.S. ANAND, MR. O.P. GOYAL (SESSION CHAIRMAN) AND MR. V. K. VALMIKI.
the same level in 1950s, we can see that in electronics hardware, we are falling way behind. So much so that in a few years, our import bill for electronics may be more than that for oil! But in Chemicals, we are nearly selfsufficient today. In terms of research, India produces more publications in chemistry than in any other field. We also produce lot of talents for academia and industries to thrive on”, Dr. Khakhar stated. Dr. Khakhar further compared R&D Investments in various countries and added that we have entered a knowledge economy today. Almost 40% of Gross Value Added in the West is by R&D and patents. This was just 15% a few decades ago. In India, however, this is small. Only 0.8% of our GDP ($8 Billions) is spent on R&D here as against 2% ($300 Billions) in USA, 1.8% ($30 Billions) in China. S. Korea with 3.5% of GDP spent on R&D has made possible names of Samsung, etc household names in India.
“In 1970s and 1980s, our industry grew by either importing technology after getting difficult to get licences or by in-house developing it. Competition was meagre and patents were not strong, so the technology developed was not state of the art. The in-house developed technology got widely copied in plants, which were not world scale. However, with liberalisation starting in 1990s, and strong patent regime getting introduced (thanks to Dr. R. A. Mashelkar’s efforts), we entered a R&D era in India and are now at level playing field. We not develop world class technology for our own use or we licence it here or abroad. In particular, in Chemicals and Autos, we have sterted putting lots of resources with state of the art R&D Centres. About 750 MNCs also have set up R&D and Design centres in India today.” “There is also a spurt in Academic research with increased facilities being available. These have helped in
MR. SAPAN RAY CONDUCTING THE SESSION. SEATED TO HIS RIGHT ARE: MR. L. SHRIRAM AND MR. SUNEEL ALSHI & TO HIS LEFT ARE: MR. AJIT PATIL, MR. M.J. SHAH AND MR. RAJDEEP HEGDE.
36 z CHEMICAL NEWS NOVEMBER 2014
THE 3RD SESSION IN PROGRESS. ON THE DAIS ARE MR. AJAY PANNU, MR. DHAVAL DESAI, MR. PRAVIN KUMAR SINGH (SESSION CHAIRMAN), MR. SUBHAT KUMAR JINDAL AND DR. S. SANKARANARAYANAN.
increasing the publications, patents and most of all trained personnel for industries. An Institution like IIT-B now has nearly 2500 students doing their Ph.D. Now as against only a couple of hundred a decade or so ago. The role of Academia has thus significantly grown”, Dr. Khakhar observed. The inaugural session was ended with a hearty vote of thanks by Mr. H. S. Karangle, Director General, ICC. During the FIVE Technical Sessions, the Award Winning companies show-cased their achievements and excellence of performance in their respective fields for which they have been conferred with the ICC Awards for 2013. The FIRST SESSION of the Seminar was chaired by Mr. O. P. Goyal, Member, Technology & Energy Expert Committee – ICC. Mr. G.V.S. Anand, General Manager, Nagarjuna Fertilizers & Chemicals Ltd, Kakinada; Mr. V. K. Valmiki, Sr. Manager-HSE, National Peroxide Ltd, Kalyan; made presentations on their achievements in the
Management of Health, Safety & Environment, in their establishments. The Second Session on Excellence in Energy Conservation & Management, Mr. Sapan Ray, Chairman of the Trade & Business Development Expert Committee, ICC (and Sr. Executive Vice President-Polymers,, Reliance Industries Ltd), conducted the proceedings. Mr. L. Sriram, Sr. Manager-Energy & Environment, Bharat Petroleum Corporation Ltd; Mr. Suneel Alshi, General Manager-Chemical Business, Asian Paints Limited; Mr. Ajit Patil & Mr. Rajdeep Hegde, Century Rayon & Mr. M. J. Shah, Sr. Manager-Engg, National Peroxide Ltd., made presentations on behalf of their companies. The THIRD SESSION was devoted to the Award winning companies for Water Resource Management in Chemical Industry. Mr. Pravin Kumar Singh, E. I. DuPont India, chaired this Session. Mr. Dhaval Desai, General Manager-Process, Essar Oil
DR. S. HARIHARAN CHAIRING THE SESSION. SEATED TO HIS LEFT IS MR. SANJEEV KUMAR GUPTA AND TO HIS RIGHT ARE: MRS. BHOOMA PARTHASARATHY AND MRS. INDIRA SUNDARARAJAN.
CHEMICAL NEWS NOVEMBER 2014 z 37
DR. PRAKASH TRIVEDI CONDUCTING THE SESSION. SEATED TO HIS LEFT IS DR. A. V. RAMA RAO AND TO HIS RIGHT IS MR. B.N. BUTALA.
Limited; Mr. Subhat Kumar Jindal, Lanxess India Pvt Ltd; and Mr. S. Sankaranarayan, Director-Operations, Solvay Specialities India Pvt Ltd. were the experts who presented their achievements on water resource management in their companies. Mr. Ajay Pannu, SHE Leader – South Asia, E.I. DuPont India, Gurgaon, also made his presentation on Energy Conservation & Management in this Session. The Fourth Session, which was on Social Responsibility was chaired by Dr. S. Hariharan, ChairmanNorthern Region, ICC (Jt. Managing Director, Solaris Chemtech Industries Ltd). Reliance Industries Limited and Ultramarine & Pigments Limited were the two companies who have won the Award on this category. Mr. Sanjeev Kumar Gupta, General Manager-Corporate Affairs, Reliance Industries Limited and Mrs. Indira Sundararajan, Wholetime Director (Ultramarine & Pigments Ltd) along with Mrs. Bhooma Parthasarathy, Trustee & Director, Thirumalai Charity Trust, made presentations on their various activities for social uplift of the society in general. Excellence in Chemical Plant Design and Engineering & Development of Indigenous Technology were the theme of the Fifth Session of the Seminar. Dr. Prakash Trivedi, Hon. Editor, CHEMICAL NEWS, conducted this session when Mr. B. N. Butala, OSD-Research, GSFC, made presentation on GSFC’s achievement in the installation of a 1,200-tpa Hydroxyl Amine Sulphate (HAS) plant, for which the ICC
Award has been conferred on them. Dr. A. V. Rama Rao, Chairman & Mg. Director, AVRA Laboratories Pvt Ltd., the proud winner of the prestigious Acharya P.C. Ray Award for Development of Indigenous Technology, highlighted the technological advances they have made in developing innovative technologies for synthesis of Irinotecan, a semi-synthetic derivative of the natural product, Camptothecin, used to treat colorectal cancer. The SIXTH and the last session of the Seminar was on RESPONSIBLE CARE. Mr. Ravi Kapoor, Vice President-ICC (Managing Director, Heubach Colour Pvt. Ltd.) presided over this session. The Chairman extended a hearty welcome and special thanks to Dr. Hubert Mandery, Director General, European Chemical Industry Coun cil (CEFIC) and Dr. Hans-Jurgen Korte, Chairman-RCLG & Executive Vice President, Solvay Belgium, who have come to attend this session and address the delegates. There was a presentation by Ms Ashima Sushilchandra, Head-Responsible Care South Asia, BASF India Limited, on the latest update and progress of the Responsible Care activities in India. During this session, Five of the ICC-member companies viz: Alkyl Amines Chemicals Ltd; Apcotex Industries Ltd; Clariant Chemicals (India) Ltd; Colourtex Industries Pvt. Ltd and Navin Fluorine International Ltd. were presented the Responsible Care Logo who have won the same after stringent audit processes by ICC team.
MR. RAVI KAPOOR CONDUCTING THE SESSION ON RESPONSIBLE CARE. SEATED TO HIS LEFT IS DR. HANS-JURGEN KORTE AND TO HIS RIGHT ARE: DR. HUBERT MANDERY AND MS ASHIMA SUSHILCHANDRA.
38 z CHEMICAL NEWS NOVEMBER 2014
E
TH RC LOGO TO ENTING THE KORTE PRES ES CHEMICALS LTD. EN RG -JU L AMIN DR. HANS TIVE OF ALKY REPRESENTA
RC LOGO BEING PR ESENTED TO REPR ESENTATIVES OF COLOURTEX INDUS TRIES BY DR. HUBE RT MANDERY.
EIVING
OTEX INDUSTRIES LTD REC REPRESENTATIVES OF APC HANS-JURGEN KORTE. THE RC LOGO FROM DR.
DR. HANS-JURGEN KORTE. PRESENTING THE RC LOGO TO REPRESENTATIVES OF CLARIANT CHEMICALS INDIA LTD.
ERY, DR. HUBERT MAND RC E TH G TIN EN ES PR ORINE LOGO TO NAVIN FLU L NA TIO NA ER INT
CHEMICAL NEWS NOVEMBER 2014 z 39
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ICC CONCLAVE OF OVERSEAS INDUSTRY ASSOCIATIONS
W
ith the support of Department of Chemicals & Petrochemicals (DCPC), Government of India, ICC organized a Conclave of Overseas Industry Associations coinciding INDIA CHEM 2014 on 9 October 2014 at Hotel The Lalit, Mumbai. The theme of the Conclave was Responsible Care and Security Code. ICC Conclave was inaugurated by Dr. A. J. V. Prasad, Joint Secretary, DCPC, Ministry of Chemicals & Fertilizers, Government of India. Mr. Arun Agarwal, Director, DCPC, Ministry of Chemicals & Fertilizers, Government of India also attended the Conclave. The Conclave was attended by overseas delegates: 1 Mr. Daniel Roczniak, Senior Director, Responsible Care®, American Chemistry Council 2 Mr. Peter Michael GAMBILL, Program Officer, U.S. Department Of State 3 Ms Susan Adele CASKEY, Principal Member Technical Staff, U.S. Department Of State 4 Dr. Stan Higgins, CEO, North East Process Industry Cluster (NEPIC) 5 Mr. John Brady, Senior Project Manager, North East Process Industry Cluster (NEPIC) 6 Mr. Abul Basher Miah, Director (Technical & Engineering), Bangladesh Chemical Industries Corporation (BCIC) 7 Mr. Muhtar Hashim, CICM Deputy Chairman & Responsible Care Committee Chairman, Chemical Industries Council Of Malaysia (CICM) 8 Mr. Harminder Singh, RCP 42 z CHEMICAL NEWS NOVEMBER 2014
Technical Advisor, Chemical Industries Council Of Malaysia (CICM) 9 Mr. Tomer Carucci, Policy Manager – Foreign Trade Division, Manufacturers’ Association Of Israel (MAI) 10 Mr. Moriyasu Koichi, Director, SHE & Technical Division, Japan Dyestuff & Industrial Chemicals Association (JDICA) 11 Ms. Rajalakshmi Swami, Liaison Officer, Japan Dyestuff & Industrial Chemicals Association (JDICA) Apart from the above overseas delegates, members of the Executive Committee, Responsible Care Apex Group, Sustainability, Responsible Care and Safety, Health & Environment Expert Committee of ICC, and few representatives from the academia, attended the Conclave, totaling about 40. Dr. A. J. V. Prasad, in his inaugural address complimented ICC for its initiatives and highlighted the role of R&D in development of chemical
DR. A.J. V. PRASAD ADDRESSING THE GATHERING
MR. S. K. HAZRA ADDRESSING THE DELEGATES
industry. He said that the amount spent on R&D by Indian companies is very less compared to overseas leading players like USA, China, Japan, UK, Korea etc. Mr. S. K. Hazra, Chairman, Sustainability, Responsible Care and Safety, Health & Environment Expert Committee welcomed the delegates and briefly highlighted current status of Responsible Care and past initiatives of ICC for implementing Security Code in India. He informed overseas delegates that their presentations will be useful for ICC who is planning to introduce ‘Security Code’ in its Responsible Care program shortly. Galaxy Surfactants Ltd, member-company of ICC has been recently audited by ICC RC Audit Team and based on the Audit Report, it has been decided to give permission to use Responsible Care Logo for a period of 3 years. The Memento mentioning period for which permission has been granted to use RC Logo was then presented at the hands of Joint Secretary to Mr. U. Shekhar, Managing Director, Galaxy Surfactants Ltd and his team.
MR. U. SHEKHAR (4TH FROM LEFT), MD, GALAXY SURFACTANTS LTD RECEIVING THE RC LOGO FROM DR. A.J.V. PRASAD ALONG WITH HIS COLLEAGUES.
Mr. Trimbak Y. Hote, Director – RC, ICC made a presentation on current status of Responsible Care in India. He highlighted ICC’s efforts in increasing number of RC logo holders. He further said that ICC has introduced system of granting permission to use Responsible Care
Director, Responsible Care®, American Chemistry Council made detail presentation on ‘Responsible Care’ and ‘Security Code’ in USA. He highlighted security aspects in USA before 11 September 2001 and after 11 September 2001. He mentioned that earlier, focus was on crimes associated with workplace, employee, intruder theft, theft and diversion of high value products, intellectual property, counterfeit products, cyber, chemical weapons, etc. After 11 September 2001 emphasis is on terror attacks on facilities resulting in chemical releases, theft and diversion of product on-site or in supply chain for weapons use, cyber disruption of operations, diversion of product, etc. Security Code which is being implemented in America involves: z Leadership commitment
z Analysis of threats, vulnerabilities and consequences z Implementation of security measures z Information and cyber-security z Documentation z Training, drills and guidance z Communications, dialogue and information exchange z Response to security threats z Response to security incidents z Audits z Third-party verification z Management of change z Continuous improvement He also highlighted examples of security practices including restricting area perimeter, inventory of materials, access control, know your customer programs, personnel surety, etc. He further mentioned that Security Code has direct relationship to Product Stewardship Code, Distribution Code and Process Safety Code.
MANUFACTURERS’ ASSOCIATION OF ISRAEL (MAI) Mr. Tomer Carucci, Policy Manager – Foreign Trade Division, Manufacturers’ Association of Israel (MAI) shared Israel’s approach towards Responsible Care and Security Code. He briefly introduced MAI which was established in 1921 and is independent organization.
MR. TRIMBAK HOTE MAKING THE PRESENTATION
logo for a period of one year on fast track basis to those companies who got ISO 14001 & OHSAS 18001 certification. He also highlighted ICC’s special initiative for mentoring units in small scale sector who are serious in implementing RC. Thereafter representatives of overseas Industry Associations made presentations which are summarized below:
AMERICAN CHEMISTRY COUNCIL: Mr. Daniel Roczniak, Senior
MR. DANIEL ROCZNIAK MAKING THE PRESENTATION
MR. TOMER CARUCCI, ADDRESSING THE DELEGATES
CHEMICAL NEWS NOVEMBER 2014 z 43
It is voice of the Israeli industry. It has 150 companies as members from various fields such as basic chemicals, fuel, oils and oil refining, pesticides, fertilizers, decontaminants and disinfectants, detergents and cosmetics, human medications, veterinary medications and products, biotechnology, medical equipment & diagnostics, oil & gas exploration, environmental industries, etc. About 50% of the companies have the appropriate profile for being a part of the RC program, 57% from the society members are small size manufacturers (0-100 employees), 25% are medium size manufacturers (100-250 employees) and 17% are large size manufacturers (250 employees and more). Its motto is “to create a supporting environment, followed by certainty conditions for the chemical, pharmaceutical & clean-tech industries in the long term�. The revenue of Israel chemical industry for the year 2013 was of the order of $36.6 billion and employs 39200 employees. In the last decades, industries exports have consistently increased. In the year 2001 Israel accepted as member of RCLG. The society promotes environmental regulatory policy in line with leading directives i.e. REACH and encourages the industry and chemical plants to implement high environmental standards for air, waste, hazardous waste, waste water, land pollution, etc. It promotes and encourages its members to increase transparency and engage with the public. As far as Security Code is concerned, RC Security Committee was established with following objectives: z Create shared security policy guidelines z Crystallize shared position to deal with security officials z Create cooperation between companies 44 z CHEMICAL NEWS NOVEMBER 2014
It has also published Security Guidelines Booklet. In the year 2002, it has set up Community Advisory Panel based on ACC model and joint activities for community empowerment are carried out.
U.S. DEPARTMENT OF STATE Mr. Peter Michael GAMBILL, Program Officer and Ms Susan Adele CASKEY, Principal Member Technical Staff, U.S. Department of State made presentation. It was made very clear that entrepreneur first has to decide to what extent his business is likely to be subject of security threat, then and then only US Department guidelines can be best used. While extending support the confidential information about
the company is never insisted upon. Chemical Security Implementation plan involves Performance based security risk and vulnerabilities assessments, inventory management enhancements and security enhancements which includes physical, personal, transportation and information. Its strategy is to engage with scientists, chemical industries and government officials to raise awareness of the risks of dual use chemicals, to improve best practices to mitigate the risks of hazardous and dual use chemicals at all points along the chemical supply chain from manufacturing and distribution to use and disposal, to ensure sustainability of global chemical risk management.
NORTH EAST PROCESS INDUSTRY CLUSTER (NEPIC)
MR. PETER MICHAEL GAMBILL, MAKING THE PRESENTATION
Dr. Stan Higgins, CEO, North East Process Industry Cluster (NEPIC) then addressed the delegates. Dr. Stan Higgins said that Responsible Care is based on trust and in UK Responsible Care has completed 25 years and there has been huge improvement in the performance of the industry over that period. Health and safety measures have held in reduction of lost time accidents and deaths, environmental emissions have decreased while at the same time production volume have
BANGLADESH CHEMICAL INDUSTRIES CORPORATION (BCIC) Mr. Abul Basher Miah, Director (Technical & Engineering), Bangladesh Chemical Industries Corporation (BCIC) gave brief report about Bangladesh and said that in Bangladesh, industry association is controlled by the Government. Further chemical industry is
DR. STAN HIGGINS ADDRESSING THE DELEGATES
MR. MUHTAR HASHIM ADDRESSING THE DELEGATES
significantly increased. According to him Responsible Care Guiding Principles are: z Must do the right thing z Be open and responsive to public concerns z Adopt product stewardship taking products from cradle to grave and to cradle again He strongly suggested open and responsive dialogue and responding to public concerns through an ethical approach. He said that RC is worthless unless it operates with and builds on trust. He strongly advocated need to externalize RC Movement.
It ranges from MNCs, big local companies and SMEs. Important export markets include ASEAN, China, Korea, Japan, US and Europe. The main objectives of CICM are: z To promote cooperation among manufacturers of chemical products in Malaysia z To promote development and interest of the chemical industry in Malaysia and internationally z To serve as a channel of communication between the chemical industry and the Government z To promote HSE excellence and sustainable development of the chemical industry The vision of CICM is “The Malaysian Association championing the sustainable growth for the chemical industry�. As on today 125 companies have pledged their commitment to Responsible Care.
CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM) Mr. Muhtar Hashim, CICM Deputy Chairman & Responsible Care Committee Chairman, Chemical Industries Council Of Malaysia (CICM) shared progress made by Malaysia on Responsible Care and implementation of Security Code. He said that Malaysian chemical industry comprises of petrochemicals, basic industrial chemicals, pharmaceuticals, fertilizers, pesticides, oleochemcials, cosmetics and toiletries, organic chemicals, industrial gases, paints, etc, as well as chemical traders, distributors and service providers.
1994: RC launched 1994-99: Guiding Principles / 6
Codes / Self Assessment Format 2000: Indicators of Performance 2002: Responsible Care Awards / Peer Verification 2010: Responsible Care Management System 2014 & beyond: Security Code / training of Auditors / 3rd Party Verification / Global Product Strategy
MR. ABUL BASHER MIAH, ADDRESSING THE DELEGATES
dominated by fertilizer and textile chemicals manufacturers.
OPEN HOUSE DISCUSSION: After the various presentations, there was Open House Discussion during which Indian delegates shared their concerns about Security Code. Issue of news report of explosion of Hydrogen Peroxide tanker between India Pakistan borders was also raised as it involves security threat. Members also shared risk involved in transporting Ethylene Oxide on the road and precaution to be taken for its safe transportation. BASF representatives shared their experience in India as they have already introduced Security Code in India. CHEMICAL NEWS NOVEMBER 2014 z 45
DISCUSSION SESSION IN PROGRESS
INDIA CHEM: 2014 8TH BIENNIAL INTERNATIONAL EXHIBITION & CONFERENCE” On 10th October 2014, in the morning session, delegates visited INDIA CHEM 2014: 8th Biennial International Exhibition & Conference” during 9 – 11 October 2014 at Bombay Exhibition Centre, Mumbai. Many delegates from overseas also visited ICC Stall at the exhibition.
INAUGURATION OF NICERGLOBE PROJECT OFFICE
ICC STALL AT THE INDIA CHEM 2014 EXHIBITION
46 z CHEMICAL NEWS NOVEMBER 2014
Mr. Daniel Roczniak, Senior Director, Responsible Care®, American Chemistry Council, inaugurated the NicerGlobe Project’s office located at Kanjur Marg, eastern suburb of Mumbai, in the afternoon on 9TH October 2014. Capt. Dinesh
MR. DANIEL ROCZNIAK INAUGURATING THE NICERGLOBE OFFICE
Desai of BASF India Limited made detailed presentation on the Project. Delegates were very much impressed by the initiative taken by industry for promoting this project.
chemical industry. The event was very informative for me and my visit to Visakhapatnam where I visited pharma companies showed the strength of Indian pharma industry”.
FEEDBACK ON THE CONCLAVE RECEIVED FROM THE PARTICIPANTS:
2. Mr. Abul Basher Miah, Director (Technical & Engineering), Bangladesh Chemical Industries Corporation(BCIC), Dhaka “I take this opportunity to convey my heartfelt thanks and greetings to all of you from Bangladesh. I hope you all return back to your home safely and join to your respective work. Now, I would like to share the feelings about the CONCLAVE coinciding INDIA CHEM 2014.
1 Mr. Moriyasu Koichi, Director, SHE & Technical Division and Ms. Rajalakshmi Swami, Liaison Officer, Japan Dyestuff & Industrial Chemicals Association (JDICA): “I attended the ICC Conclave. Though I could not communicate well because of language barrier, I was able to feel the strength of India in
Really it was a very good occasion and nice forum to meet all of you in Conclave coinciding India Chem 2014. I believe I had the opportunity to learn so many important things particularly “Responsible Care and Security code” as well as so many experiences from all of you. I am highly proud of it and thereby thanks to all of you. By the way, I would request all of you to help and assist me in implementation of Responsible Care in my country Bangladesh. I am eagerly expecting your comments/ reply. Your all out support is highly solicited.” 3. Prof. Usha Nambiar, Thadomal Shahani Engineering College, Mumbai “Many thanks for ICC for giving us an opportunity and congratulations for systematic and friendly ways of conducting program. It was great to interact with Dr. Higgins whose articles are eye openers in CHEMICAL NEWS, monthly magazine of ICC. May this type of conclave help India to become more focus about chemical industries?”
CHEMICAL NEWS NOVEMBER 2014 z 47
WORKSHOP ON SOLAR TECHNOLOGIES FOR PROCESS HEATING & COOLING APPLICATIONS IN INDIAN INDUSTRY
MR. RAVI KAPOOR DELIVERING THE WELCOME ADDRESS
I
ndian Chemical Council Gujarat organised a workshop on 27th September, 2014 being the second workshop of the six workshop assignment on “MARKET DEVELOPMENT OF CSTS FOR PROCESS HEAT/ COOLING APPLICATIONS IN THE INDUSTRIAL SECTOR�. Gujarat has larger concentration of Chemical/ pharmaceutical industries that drive its economy. The industry represented by Chemical fraternity of the region formed the majority of the delegates at the event with a few participants from other industries as well including food processing and educational institutions. The event was well supported by the industry 48 z CHEMICAL NEWS NOVEMBER 2014
considering the massive energy challenges that they have been facing. The industry in Vadodara believes that in case they are able to secure their energy needs for the future then their time and efforts can be better utilized towards growth and further their economic development. Mr. Ravi Kapoor, Managing Director, Heubach Colour Pvt. Ltd., the Vice President - ICC, Chairman - Indian Chemical Council - Gujarat and Global President, Ecological & Toxicological Association of Dyes & Pigments Manufacturers (ETAD) based at Basel, in his welcome address appreciated the efforts in organising the programme on topic, for the first time and most relevant
to need of the industry. Mr. Kapoor highlighted the importance of solar and other sustainable sources of energy in establishing a cleaner and greener India which would be extremely useful for industry. He shared the concern over the present energy deficient scenario for industries, where fuel for boilers and the electricity as well is becoming increasingly difficult. He also had his concerns about the erratic supply and rising cost of piped natural gas (PNG) is a worrying factor, which is compelling industry to switch-over to coal fired boilers. Solar energy is buzz-word and most eco-friendly source of energy but I am apprehensive about the
Kapoor, and the success stories of Solar thermal projects and incentives available, deliberated and focused primarily on the role and activities of GEF and UNDP with a specific focus towards India. He did highlight the present project and its major objectives with specific attention towards five categories of technologies and various initiatives for the pilot project demonstration. He urged the audience that if delegates and industry owners felt that solar concentrators can help them in their process requirements, they may contact PwC or ICC, who will help them in arriving at a pre-feasibility given the various parameters specific to the industry. The results of the pre-feasibility can help them take an informed investment decision. The technical session saw the presentations from MNRE, PwC and various technology suppliers. In addition to the presentations PwC team also shared with the participants knowledge document highlighting the sample process interventions of solar thermal installations and a video film highlighting various technologies and success stories where the solar thermal intervention has been integrated. viability of solar energy which is pegged at Rs.16-18 per unit Mr. Kapoor said. He along with the industry representatives welcomed the present initiative on behalf of PwC and PMU of the MNRE-UNDPGEF assignment on solar thermal concentrator systems and added that more such initiatives would help industry to take a favourable decision in terms of investment towards CSTs. It would be extremely fruitful, if a full scale programme spread over a day or two is arranged by the Ministry of New & Renewable Energy and the GEF - UNDP in this region. Dr. S.N. Srinivas presented his views to the concerns of Mr. Ravi
MAIN FEATURES DISCUSSED Speakers from the three organisations discussed and made presentations about the projects in detail and the role of their organization in successful execution of initiatives.
MR. SOMESH SHAH, MNRE-UNDPGEF PMU Mr. Shah made his passionate presentation by bringing out the current energy scenario for India into perspective for the audience. The key points that he highlighted were, z Our actions today involve burning a lot of fossil fuel, which releases large amounts of GHG emissions in the atmosphere.
z The conventional sources of energy available in our country are limited and may soon get exhausted in the next few decades which is one of the primary concerns for a country like India where almost all the industries are energy intensive. z In order to make our future sustainable we must initiate corrective actions beginning right today, so that our future generations have an inhabitable planet. z He was confident of support from government in the form, if industries is to make solar concentrators a viable option, i.e., even in their present form they were commercially and technically viable without any additional support as was evident in numerous successful stories across India. z He informed the audience that for a support to industry, government and the UNDP have come with a program that was very encouraging and everyone should take its benefit, as the present scenario is the best time for making an investment in CSTs. z He also reiterated the fact that the Ministry of New & Renewable Energy, Govt of India was committed to promoting CSTs for industrial applications. His presentation covered varied points that audience wanted answers on including the subsidy structure, its disbursal methodology, technology specifications, its applications, state of the Indian market etc. The key feature in his presentation was, when he provided customizable solutions for different industrial sectors (i.e. CSTs can be used for boiler feed water preheat in tobacco processing etc.) He concluded his presentation requesting industry to consider replacement of at-least part usage of their fossil fuel consumption. Audience appreciated the numerous case studies of installations across CHEMICAL NEWS NOVEMBER 2014 z 49
India that have been running successfully.
MR. SIDDHARTH MALIK MEGAWATT SOLUTIONS Megawatt Solutions was represented by their Managing Director Mr. Siddharth Malik. Megawatt is a complete solution provider for industrial process solution, providing a round-the-clock solution by integrating solar with biomass. Thus Megawatt has been able to replace fossil fuel requirements of industry on a 100% basis. He also informed the audience that his organization is currently executing the biggest industrial process heat plant of 1 MW project in Vadodara. He outlined the various processes for which the Megawatt dish can be utilised such as drying, air/space heating, cooking, effluent evaporation, pool heating, desalination, distillation etc. He also highlighted key technical specifications of his dish and the key features that made Megawatt stand apart is the lightweight and minimal footprint of 1m*1m that his dish requires. This feature is a key differentiator for Megawatt in industries where space is a constraint as the dish stands on a column and the space below the dish can be utilized for other purposes including parking. He also shared with the participants a standard case study based on diesel abatement with typical layout. He also shared indicative paybacks for various fuels and at various levels of DNI which was very well appreciated by the participants. He ended his presentation while describing an installation that Megawatt is doing in United States and claim to be the first organization that have taken Indian technology to the world rather than vice versa.
PRESENTATION BY ULTRA CONSERVE Ultra Conserve represented by their director Mr. Vivek Mahajan deals with parabolic trough OptiTrough 50 z CHEMICAL NEWS NOVEMBER 2014
300 Concentrating Solar Collector. Vivek highlighted the technical specifications including its modular design, aperture area of 28.8 m2, high concentration ratio, lightweight modular structure ideal for terrace installations. He also highlighted the excellent optical properties of his product backed by long life and durability. The OptiTrough also tracks the sun along the axis giving a higher efficiency to the product. The key highlight of his presentation was the cost economics for a standard project of 260 Sq. Mtr. aperture area consisting of 9 modules. Ultra conserve boasts of an in-house expertise right from design to installation to resolving any issues that may arise in the future.
PRESENTATION BY CLIQUE SOLAR ‘Clique Solar’ who describe themselves as a solar based boiler company made a video presentation. Clique are the pioneers in the Indian solar thermal market with their patented product ‘Arun’ dish, which has been in use since 2006 and boasts of numerous success stories. The presentation highlighted the operation mechanism of the Arun dish and its integration methodology with the existing process and also threw light on specifications and performance parameters of their product and highlighted. ARUN also solves space constraints as can be utilized on a beam structure with a very small footprint. Clique claims to INTERACTION SECTION IN PROGRESS
have a sound backing of research scholars, market leaders etc. and boast of few awards they have received from the solar community for Arun. They claimed to be the only organization that provides a written performance guarantee subject to ambient conditions. The presentation also covered the applicability of solar thermal in the target sectors and its advantages thereof. The presentation also had a real time video of the operations of an Arun dish and the various success stories that Clique Solar boasts of across India.
PRESENTATION BY LEVERAGE NET SOLUTIONS Airier Natura were represented by Mr. Rohit - Director, who informed the audience of the impending gloom that faces mankind in terms of the limited conventional energy resources and their un-ending exploitation for human use. He began his presentation by enticing the audience to make a change and strive to make earth a better place t0 live. He also highlighted the impending crisis that world faces in terms of exploitation of fossil fuels and their limited availability. ‘Leverage Net’ believe that although today on a per unit basis renewable based sources are expensive but the future lies in them and this investment in CSTs should be taken as a first mover’s advantage to be realised later. He also shared with
the audience his company’s vision “To be the most trusted renewable energy brand offering innovative, zero emission products, profiting and benefiting the company, customer, employees and community at large.” He shared with the audience that India is a resource rich country blessed with high solar insulation that can be harnessed to source and secure our energy needs. He informed the audience of the basic principles behind solar concentrating technology and its types. He also presented before the audience the technical specifications of his organization’s product Parabolic, through giving its technical specifications, areas of application, integration with existing system and its various advantages. At the end he also shared success stories that his organization has implemented in the past.
PRESENTATION BY PwC Mr. Ishan Nagpal, began his presentation by highlighting the strategic capabilities and achievements of PwC globally including India. His presentation included the range of services that PwC provides to clients in the energy sector across the technology spectrum. His presentation included a case of Renewable Energy by highlighting the energy sector scenario in India and the possible interventions, where the RE technologies can be extremely in the different sectors of the economy. He shared the potential of RE in India and the vast untapped potential that RE technologies have for industries to capture and utilize. His presentation also threw light on the solar potential via GHI and DNI data set for India as a whole and various cities of Gujarat to bring a perspective amongst the participants. He shared the potential reasons of a shift towards Solar Thermal for heating and cooling applications. The key highlight in the presentation was the information on
present initiative where MNRE and UNDP envisage 30 demonstration and 60 replication projects achieving a total collector area of 45000 Sq. Mtr. to contribute to reduced GHG emission (to the tune of 39000 Tonnes of CO2) during project implementation of five years. Other results of the project aims at achieving are: z Technical Capacity Development: This outcome addresses the need to develop a better understanding of the five main ‘Solar Concentrator Technologies’, the performance of existing installations, market for CST in India and the development of technology application information packages. z Boost in awareness to Solar Concentrator Technologies and capacity building z Sustainable financial approach in the adoption of CST technologies and applications in India He highlighted the technologies that are available for target demonstration and replication projects and also discussed the relevant technologies to be considered under demonstration and replication projects. His presentation concluded with the 4 case studies of existing installations, which included Purple Creations, Baramati, Pune, Mahindra and Mahindra, Pune, a tobacco major from Karnataka and SKF technologies in Mysore. At the end he shared a videos of the installations successfully running across the country. The audience appreciated these videos and the case studies and commented that now it strengthens their belief in the nascent field of solar thermal for industrial applications.
ISSUES RAISED BY THE AUDIENCE DURING THE WORKSHOP The participants raised number of issues during workshop as not many of the audience were aware of the merit of CST based
systems to supply steam quantum and profile that is needed by an average industry. Industry also had the misunderstanding that CST systems would be able to replace the heat and steam requirements of the processes on a firm and 100% basis which was clarified by all the panelists that a 100% solution by CSTs is not a viable alternative but what is being tried is to at least reduce the current level of dependence on fossil fuels of the industrial establishments. There were also many queries relating to applicability of CST based systems on a smaller scale that is for individual house which was clarified that in present conditions is not a viable option given the current technology options available. Industry was also confused in terms of current subsidy levels given that there were different schemes running at present. Numerous queries were raised about the disbursal methodology and what was the subsidy pattern. There were also queries on whether there will have to be a different application procedure for claiming UNDP support as against the regular ministry support. Queries were also raised by specific industries about the applicability of CSTs in their sector in terms of what processes can be supplemented via concentrators. In this regard Ishan provided plausible solutions of CSTs which were to be further explored jointly between the interested beneficiary and PwC. Some queries were also raised about possible financing options available to finance these initiatives by the industry in form of cheaper debt. Somesh Shah here announced that a ESCO mode scheme was also available where suppliers will incur initial expenditure and supply thermal energy to beneficiary on a per unit basis for a fixed duration possibly 4-5 years after which he shall exit the project and the ownership shall transfer to beneficiary. CHEMICAL NEWS NOVEMBER 2014 z 51
AWARENESS PROGRAM ON CHEMICAL WEAPONS CONVENTION (CWC) VADODARA
MR. ANAND KANE, CWC HELPDESK-INCHARGE, ADDRESSING THE DELEGATES. SEATED TO HIS LEFT ARE: MR. BABUBHAI PATEL, PRESIDENT, NANDESARI INDUSTRIES ASSOCIATION AND MR. Y. P. SAXENA, SECRETARY, GUJARAT CHAPTER, ICC.
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WC Help Desk of Indian Chemical Council (ICC) with the support of Department of Chemicals & Petrochemicals (DCPC), Ministry of Chemicals & Fertilizers, Govt.of India, organised CWC awareness programme (CWCAP) on Monday, 13th October 2014 in the auditorium of Nandesari Industries Association, Nandesari, Vadodara. The main objective of the programme was to make the participants aware on declaration related provisions of CWC, e-filing of CWC declarations and implications of errors in the information provided in declarations. There were 72 Participants; 58 were the representatives from declaring facilities, 53 out of 58 were from OCPF declaring facilities. Ms. Aarat Sheth, Events Manager, ICC Gujarat formally welcomed the participants and the Chief Guest Mr. Babubhai Patel, President Nandesari Industries Association. She also 52 z CHEMICAL NEWS NOVEMBER 2014
briefed participants on the aims of CWCAP. Mr. Babubhai Patel in his address commended the efforts of ICC CWC Help Desk and reminded participants to provide accurate declarations in stipulated time line. He requested Mr. Anand Kane to specifically inform participants on the consequences of violations of CWC Act-2000. Participants were asked to avail services of CWC Help Desk in filing declarations and comply with their statutory obligations. Participants were shown a recently produced 6-minute video “OPCW Corporate Video” depicting history of use of chemicals as chemical weapons (CWs) during World War I, continued use of CWs in 20th Century that caused death of 90000 people, signing of CWC, establishing of OPCW and its working, and details of destruction of CWs. Video also discussed on OPCW’s activities in promoting peaceful use of chemistry and
organising various programmes towards “working together for world free of Chemical Weapons”. It was informed that more than 80% of CWs stock pile and 60% munitions have been destroyed till now. The video also illustrated that there are 190 Member States (over 98% of world population) to CWC. The latest State to join the treaty is Syria. It was also informed that OPCW was awarded “Nobel Peace Prize for 2013” for its achievements. Mr. Kane thereafter gave a quick overview of CWC through his presentation. Details on schedule chemicals, declaration criteria, declaration submission timelines, declaration and inspection threshold quantities under various regimes, were discussed at length. Information was also given on countries who are not members to CWC and trade restrictions with these countries with respect to Schedule chemicals. The next Presentation on e-filing,
followed by “live demonstration of e-filing of OCPF declarations” was given to the participants by Mr. Anand Kane. The main emphasis was on securely keeping the e-filing credentials, providing correct and complete user details like name of company, address, PIN, e-mail ID, number of plants, unit of weight, production range, product group code and activities conducted at the site. Field by field explanation on the information to be provided in declaration forms was given, Participants were also informed
on Do’s and Dont’s during and after e-filing and the precautions to be observed before freezing the declaration. Majority of the Participants being from existing declaring facilities found this deliberation quite useful. Participants were also informed in detail on the common mistakes committed in filing declarations. They were specifically explained a common problem of “confusion over the status of PSF - chemicals in relation to Discrete Organic Chemicals (DOCs)”. Case studies were discussed to ensure that only DOCs are declared and that inspection of non inspectable facilities does not take place. Participants were communicated that Dept. of Chemicals & Petrochemicals, Govt. of India is planning to modify e-filing system to make it more user’s friendly - a step forward towards providing error free declarations. A brief session on “sharing of inspection experience” by two representatives of industry that were inspected in the past, was arranged as part of confidence building measure amongst the participants. Representatives informed the participants to be more attentive on providing correct information in declarations. They were also informed that plant sites receive good cooperation from National escorts throughout inspection process and that there is no impact on plant operation and routine activities of the plant site because of
inspection. Participants welcomed the feedback. Mr. Y.P. Saxena, Secretary, ICC - Gujarat, made a Power point presentation on CWC provisions, informed the participants on the evolution of CWC related activities from the time first CWCAP was conducted by ICC in 2004. He also displayed trend and statistics of declarations and the awareness that got generated as a result of efforts by DCPC and ICC. Details on CW possessor States and CW destruction statistics were also given. Participants were once again reminded to comply with their statutory obligations. Soft copy of updated CWC Handbook, Guidelines on e-filing and a detailed write up on “Common mistakes in filing OCPF Declarations” was sent to each declaring facility a week before the programme. Ten hard copies were left at NIA library for reference purpose. Q & A session was interactive. A general view of the industry is that Small scale industries are unnecessarily covered under CWC. Participants were informed that CWC is international treaty and needs consensus for any alteration. The programme ended with vote of thanks by Ms. Aarat Sheth. She thanked participants for their time and interactive approach. NIA was also thanked for making its auditorium and necessary paraphernalia available for CWCAP.
A PART VIEW OF THE DELEGATES.
CHEMICAL NEWS NOVEMBER 2014 z 53
AWARENESS PROGRAM ON CHEMICAL WEAPONS CONVENTION (CWC) BHIWADI
I
ndian Chemical Council (ICC) and the Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals & Fertilizers jointly organized a Half-day Aawareness Programme on “Chemical Weapons Convention” on Saturday, the 27th September 2014 at SRF Bhiwadi, Rajasthan. Delivering the welcome address at the Inaugural session, Mr. Rajeev Marwah- Head of works, SRF Ltd and member, ICC Northern Region highlighted that the main goal of the Chemical Weapons Convention is to eliminate chemicals weapons of mass destruction and to prevent their re-emergence. The Chemical Weapons incapacitate the human victims in a devastating manner. Their effects on the environment can persist for a very long period. It is almost impossible for common people to protect themselves against such risks. Further elaborating on this, he added, “Chemical Weapons Convention is a universal nondiscriminatory, multilateral, Disarmament Treaty which bans the development, production, acquisition, transfer, use and stockpile of all chemical weapons. The Treaty puts all the States Parties on an equal footing. Countries having stockpiles of chemical weapons are required to declare and destroy them in a specified time frame and those 54 z CHEMICAL NEWS NOVEMBER 2014
who produce and use chemicals that can be converted into chemical weapons have to be open and transparent about the use they put these chemicals to.” He informed the participants that India was one of the early Signatory Countries to the Chemical Weapons Convention and signed the Convention on 13th January 1993. Speaking on the Chemical Weapons Convention Act, which came into force on 1st July 2005, he explained that declarations and verification are the two important aspects for implementation of the Convention. Under this Act, major producers of Chemicals under Schedules 2 and 3 will have to report their transactions of these Chemicals. “The chemical industry is hence legally and morally obliged to co-operate with the Government of India to the implementation of the Chemical Weapons Convention, at the earliest, so as to help the Country meet its global obligations, aspirations and commitments”, he emphasized Mr. R. K. Sharma, Member, ICC, Northern Region Presentation An Over view of Chemical Weapons Convention. Dr. N.J. Singh made a presentation on Articles of Chemical Weapons Convention, Obligations under the Convention and actions for compliance to the audience.
Dr. Singh spoke at length about the declarations and inspection of relevant chemical industries. He also elaborated on the Article – VI of the convention, which provides enabling provision for the obligations imposed on the State parties. A detailed discussion on three schedules of chemicals – Schedule 1 comprising of Chemical Weapons, Schedule 2 comprising of Precursors and Schedule 3 referring to general purpose chemicals. He also presented the complete list of commercially traded Schedule 2 chemicals for the benefit of the Indian chemical industry. After the presentations, a Q & A session was organized which was quite interactive. The programme provided an opportunity for participants to learn about the export control measures, filing declarations and hosting verification inspections from teams deputed by Organization for Prohibition of Chemical Weapons (OPCW), which is international agency for implementation of provisions of CWC. The programme also successfully eliminated undue apprehensions from the minds of participants of Chemical Industry about the CWC Act and its implementation. In the end, Mr. Himanshu Shukla, Head Environment, SRF Ltd proposed the vote of thanks.
ICC RECEIVES THE “2014 FROST & SULLIVAN ENABLING TECHNOLOGY LEADERSHIP AWARD FOR CHEMICAL LOGISTICS AND EMERGENCY SERVICE INITIATIVE” FOR ITS NICERGLOBE PROJECT
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eaders are aware that Indian Chemical Council with the support of 7 founder members - BASF India Ltd., Bayer MaterialScience Pvt. Ltd., Clariant Chemicals (India) Ltd., Dow Chemical International Pvt. Ltd., Lanxess India Pvt. Ltd., Deepak Nitrite Ltd. and Alkyl Amines Chemicals Ltd. launched the NicerGlobe Project and this project is progressing well. The Project offers services as under: z GPS Vehicle Tracking customized for chemical transportation providing easy access to MSDS, TREM Card and alerts on Speed, Route, Night Drive deviations z 24X7 Emergency Response Call Center z POI “Point of Interest” displays information on interactive may of fire & police stations, hospitals & ambulances, cranes, chemical companies and emergency experts z Gate Check Tool & CORSA “Certificate of Road Safety Adherence” for evaluation of transporter, vehicle and driver z Facilitates Journey Risk Management by providing access to route data and photographs z Forum for community awareness and education in chemical emergencies Frost & Sullivan, an international growth consulting company has presented “2014 Frost & Sullivan Enabling Technology Leadership Award for Chemical Logistics and
MR. VIJAY BUKKAWAR (LEFT) ALONG WITH MR. R. R. GOKHALE RECEIVING THE AWARD FROM MR. Y. S. SHASHIDHAR, MANAGING DIRECTOR, FROST & SULLIVAN
Emergency Service Initiative” to Indian Chemical Council. Mr. V. G. Bukkawar, Director (HSE & Responsible Care) and Mr. R. R. Gokhale, Secretary General attended the Function and received the Award on behalf of ICC, which was held on 23 September 2014 at Hotel Taj
Lands End, Mumbai. The Award was presented at the hands of Mr. Y. S. Shashidhar, Managing Director, Frost & Sullivan in the presence of Mr. Ratan Tata. This is a great honour for ICC, as ICC has never received an Award from an international organization. z CHEMICAL NEWS NOVEMBER 2014 z 55
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CHEMICAL NEWS NOVEMBER 2014 z 57
DR. STAN HIGGINS’ COLUMN
COATINGS – WORN BUT RARELY UNDERSTOOD
W
ith the opening of a large new paint manufacturing facility in Northeast England by Akzo-Nobel; effectively consolidating, scaling up and automating its UK production, then similar recent coatings investment news from Bayer and BASF in Shanghai, I have been reminded that
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the term “Coatings” means so many different things to so many different people. It has become a confused semi-technical term that few outside of the chemical industry understand. It seems to me that this is yet another faux pas by our sector, we are very good at using terminology that most people in society do not connect with and our industry being so technically aloof that it gets no credit for what it does. I contend that vast majority of people outside of the coatings sector do not appreciate its complexity and importance. According to a report published in 2013 the Paints and Coatings Market the global demand for the
paints and coatings was valued at USD 100.3 billion in 2012 and is expected to reach USD 143.9 billion in 2019. This is an important global economic activity with both saturated and emerging markets where product and price differentiation will still allow significant growth for individual companies and those that can innovate. What then do we mean by coatings, I think at first glance most people will talk about paints. Household decorating paint is certainly one area that the general public will understand, but an industrial coating is a paint that will more often than not be defined by many other properties. These can of course be colour properties but it is more likely to be functional properties that will be its purpose. Many might name some of these such as protective, reflective, adhesive or sealing properties but the coating products are much more complex than that.
TO STICK OR NOT Do you make the link between coatings and products such as adhesive tape, pressure-sensitive labels, iron-on labels even your common or garden post-it-note use adhesive functional coatings? Reduced adhesiveness or non-stick coatings are just as important think of non-stick coated cooking utensils and the partial stickiness of “postit-notes”. Anti-friction coatings are used extensively in in our cars while release coatings e.g. silicone-coated release liners are used for many self-adhesive products. In fact all of the above mentioned properties may themselves not work without coatings that “prime” or prepare the surface to be coated, enabling the
top coat to adhere well to the object. Think also of the coatings that are used as “primers” that may also have anti-corrosion properties or may have other sealing properties.
THE LIGHT IN OUR LIVES In our homes most would not recognise the speciality function coatings that they are using everyday, such as the optical coatings and reflective coatings for mirrors and anti-reflective coatings on spectacles and electronic screens. I am almost certain that consumers will associate UVabsorbent coatings for protection of eyes or skin as cosmetics rather than linking them to the coatings industry. Wherever tinted surfaces are seen in coloured lighting, glazing, or sunglasses these are almost certainly provided by coatings. Tinted coatings also have the functional role of extending product life most commonly in food supply and production. There is product development occurring in these areas continuously a recent example being the catalytic coatings applied to glass to make it “self-cleaning”. The science and technology behind many of the above innovations can be complex but the interaction of coatings with light can be even more complicated. Some lightsensitive coatings are used to make photographic film, reflective or fluorescent paints and photochromic objects that switch colours in the light, some complex organic chemicals are needed to bring about theses amazing effects.
SCRATCH MY BACK & I’LL PROTECT YOURS Many modern materials are too soft to cope with the wear and tear
of every day usage but we can get around this problem by adding an anti-scratch coating onto plastics and other materials. Such coatings not only reduce scratching they can also improve wear resistance in moving parts. Then we can apply anti-corrosion coatings to reduce corrosion or toughen up objects that are exposed to the elements such as the under-body sealant for cars or marine paints. Quite recently scientists announced a new way to tackle one of the world’s oldest, stickiest and most expensive maritime problems. This is the encrusting of ships’ hulls by algae and barnacles. This special coating uses nanotechnology that is engineered to a scale of a millionth of a millimetre and the organisms that try to hitch a ride simply slip off. It is reported that if a ship is encrusted its speed can be reduced by up to 10 per cent. But more importantly its fuel consumption can rise by 40 per cent. This new coating technology will help reduce the carbon footprint of shipping and reduce the sectors annual maintenance cost by as much as £5bn. This antifouling example is closely related to another biological area where coatings are important that is in creating antimicrobial surfaces for hospitals and healthcare
I AM ALMOST CERTAIN THAT CONSUMERS WILL ASSOCIATE UVABSORBENT COATINGS FOR PROTECTION OF EYES OR SKIN AS COSMETICS RATHER THAN LINKING THEM TO THE COATINGS INDUSTRY.
CHEMICAL NEWS NOVEMBER 2014 z 59
settings where the sterilization of medical devices is necessary to prevent hospital associated infections.
GETTING CLOSE UP & PERSONAL Coatings are very important as both wetting agents and drying agents and for water proofing both fabric, and even smells are coated on to some objects such as scratch and sniff stickers and labels that are used to advertise the fragrance industry. Antistatic and magnetic coatings are used in the production of magnetic media such as tapes and discs while electrical, electronic, conductive properties are also provided by coatings as are some insulating coatings that are on the wires used in transformers and electrical motors.
ADVANCED MANUFACTURING IS COATING ENABLED The metals industry is highly dependent on coatings and a diverse range of advanced coatings are provided by the chemical industry to enable the use of metal materials needed in many manufacturing industries. One coatings company alone lists numerous products in the following product areas just for the aerospace sector. Furthermore multiple layers of coating materials are often used. We can see from this list that the application of coatings is undoubtedly an enabling technology for the metals industry:- plating, acid
anodising, hard anodising, advanced anodic composites, electroless metalising, phosphating, passivation and paint priming, thermal spraying, heat-treatment. The above list is not exhaustive, it demonstrates the coating product complexity and range. Almost all the areas mentioned in this article has multiple products and suppliers of coating solutions. Furthermore, as we see below there is yet more to come.
SMARTLY INTO THE FUTURE In the 21st century the search is on for new smart coatings, and although there are several definitions, I think the easiest to appreciate is that these are any coating that can change its material properties in response to an external or environmental stimulus. One technology in particular has been effective in the development of new coating properties and that is nanotechnology which has not only brought new surface impacts such as the one in the marine Biology example discussed above but also in other “smart” materials with Thermal, Mechanical, Electronic, Magnetic, Optical properties at material interfaces. These new coatings using nanoparticles can already be found in textiles, sun screens, self-cleaning glass, cooling coatings, biocidal coatings in food packaging and where wear resistance in needs to be improved. In healthcare there are many developments in the areas of diagnostics and medical devices but also in bone rebuilding, self- healing and cancer targeting products leading to concepts such as “home hospitals”.
Nanotechnology is really at the heart the impact of the world’s latest super material “graphene” which is now finding many applications in the coatings industry. The addition of graphene to polymer coatings is reported to improve weathering thereby increasing the length of time between maintenance cycles. graphene is reported, unlike graphite which increase corrosion, to improve the anti-corrosion properties of metal coatings. graphene is the thinnest material known to science it and has been revealed that this particular nanomaterial is so thin water often doesn’t even know it is present. A new study reported in Nature Materials suggests that the extreme thinness of graphene enables it to have near-perfect wetting transparency which is an important property particularly in developing bio-sensor applications. It might help us make things that appear to disappear.
EMPEROR’S NEW COAT This review was written as a reminder of the importance of the coatings sector to society and industry alike. Coatings are ubiquitous, so widely used and so effective that it is hard to see how we can live modern lifestyles without the products of this highly technical sector of the speciality chemical industry. Furthermore there are many exciting new properties and applications yet to be developed. I hope that the chemical sector gets at least some of the credit for this extensive and exciting work. As in the fable of the Emperor’s new coat we in the industry know that coatings are there but others don’t see or appreciate them. DR. STAN HIGGINS is CEO of the Northeast of England Process Industry Cluster (NEPIC), a leading European Cluster for the chemical process industries see www. nepic.co.uk. NEPIC and ICC work closely on business development projects. Any opinions expressed in this column are those of Dr. Higgins alone.
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GROWING THROUGH PROACTIVE M&A IN INDIAN SPECIALTY CHEMICALS Manish Panchal, Charu Kapoor & Binay Agrawal TATA STRATEGIC MANAGEMENT GROUP chemical companies have used the acquisition route to establish their presence in India. For example, during 2013 alone there were 34 deals in chemical industry in India with an estimated value of USD 2.2 Bn (Ref: Figure 1). This trend may get more pronounced provided companies adopt a proactive approach to M&A. Traditionally, most companies have adopted a reactive M&A approach by expecting target listing through financial institutions or past database through self-search. Often this approach has led to time and effort wastage due to very low deal closure rates. Instead, TATA Strategic recommends that companies should
INDUSTRY: CURRENT STATE
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OPPORTUNITIES IN M&A Indian chemical industry is a highly fragmented industry with few integrated large companies. According to our estimates, as on today, there are ~500 specialty chemical companies in India having revenues between USD 20 Mn to USD 200 Mn. Our close interactions with industry players reveal that a large number of companies show the following traits: • The companies in the sector have a strong domestic presence and an in-depth understanding of
FIGURE 1: M&A DEALS IN INDIAN CHEMICAL SECTOR 4000
100 90 90
3500 3450
80 70
3000
70 Deal Value (Mn $)
The Speciality Chemicals market in India is currently valued at USD 23 Bn and is expected to grow at ~14% per annum to reach USD 90 Bn by 2023. This projected growth is significantly higher than the global chemical industry projected growth rate of ~3% per annum or growth rate of Indian chemical industry of ~8% per annum. The key drivers for this growth will be revival in Indian economy, increasing demand for higher quality products across various end use industries and possible inflection points in several segments in near future. M&A has been playing a critical role in shaping the industry and in past 5 years, several large and medium sized global specialty
adopt a proactive approach to M&A for growing their businesses for higher success rates.
58
2500
60
2546 49
2000
2285
34
1500
2255
50
34
40 30
1000 20
959 500
8
10
377
340
0
0 2007
2008
2009
2010
2011
2012
2013
Notes: Deal value in a particular year is estimated as value of few deals is not available Source: Bloomberg, TSMG Deal Tracker
No. of Deals
I
ndian specialty chemicals industry is currently valued at USD 23 Bn and is expected to grow at ~14% per annum over next decade. The industry is fragmented with around ~500 companies largely dominated by family owned companies. Indian chemical companies have strong domestic presence, products with unique value proposition and an established distribution network. To make the most of the opportunity, global companies need to grow their business in India through proactive M&A say Manish Panchal, Charu Kapoor, and Binay Agrawal of Tata Strategic Management Group.
customer needs. Over the years, companies have fine-tuned their products thereby making them unique in terms of value proposition for Indian market and neighbouring geographies • Several companies, though small in size, have established unique positioning and are today leaders in their product segments. As a result, revenues from exports are higher than domestic revenues for such companies • Numerous companies lack resources and know- how to scale up operations. With access to right technology, technical expertise and other resources they can provide better solutions and value propositions to the Indian market • A significant portion of specialty chemical companies in India are family owned businesses and some of the 1st generation entrepreneurs are facing a succession void due to unwillingness of 2nd generation to join the business. Such owners are looking for exit options through sell-outs. Because of the above, several
Indian chemical companies are looking for alliances, partnerships, and exit options. This offers attractive opportunities for global chemical companies looking to establish or expand presence in India. In past few years, several European companies have seen this opportunity and expanded their business by acquiring companies in India (Ref: Figure 2).
WHY M&A ROUTE? Speed to market - Indian companies dominate regional markets in chemical industry. Several players have built an established network of distributors and channel partners across the vast geographic landscape of India. These companies also have a team of skilled trained people and possess required licences and clearances. M&A option provides global companies an opportunity to leverage these strengths and create a pan- India presence from day one. Several large domestic and global manufacturers have realized this advantage. For example, in 2009, German specialty chemical major Lanxess acquired Mumbai based Gwalior Chemical
Industries. Stronger presence along value chain – M&A in India provides for both backward integration option to secure feedstock or intermediates and forward integration into downstream products to build integrated presence in the value chain. For example, Arkema acquired Ihsedu Agrochem in 2012 to get access to castor oil since India is one of the largest producers of castor oil in the world. Through this Arkema will get secure and consistent access to castor oil for manufacturing bio-based polyamides at competitive prices. Product-portfolio optimization – India is emerging as a hub for product development. Utilizing the talent pool in India, several Indian companies have reverse engineered and developed cost effective products. Several MNCs have also set up their R&D facilities or innovation centres in India to develop products for India and other middle income countries. This is critical to capture the growing market in Asia, Africa and Latin America. MNCs with their global reach can benefit multi-fold from
FIGURE 2: AQUISITION BY EUROPEAN COMPANIES IN INDIA •Acquisition of Gwalior Chemicals (Intermediates for Pharma, Agrochemicals) by Lanxess in 2009
•Acquisition of Shushield Chemicals (Surfactants) by Solvay in 2012
•Acquisition of Chemical Distribution arm of Zytex by Brenntag in 2013 •25% stake in Ihsedu Agrochem (Castor oil) by Arkema in 2013 •Acquisition of Plastichemix (Masterbatch) by Clariant in 2013 Source: Tata Strategic Deal Tracker
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M&A in specialty chemicals by immediately having access to products which provide suitable value propositions. For example, with acquisition of Plastichemix, Clariant will have a stronger product portfolio and can cater to a larger customer base in masterbatches. While growing through M&A does offer significant benefits, only the successful M&A’s create sustainable value. Therefore, it is imperative for companies to ensure that they adopt a proven approach for M&A activity. TATA Strategic recommends the following levers for successful M&A’s.
LEVERS FOR SUCCESSFUL M&A IN INDIA Various levers are necessary for a successful M&A in India 1) Define strategic intent – Decision for opting M&A should be based on clearly defined strategic intent. As mentioned earlier, speed to market, access to select segments or raw materials could be some of them but there could be specific needs such as brand acquisition, getting access to adjacencies etc. An in-depth evaluation on why the company needs to make an acquisition and whether the strategic intent is in line with its global vision and aspirations is a must. 2) Target Identification - It is said that “Well begun is half done”. This is particularly true in case of identification of right M&A targets. While the chemical companies in India are aplenty, understanding
of their business realities is the key to decide whether they can be part of shortlisted candidates for acquisition. Moreover, the targets identified should be in line with the defined strategic intent. Companies being shortlisted should be gauged on their willingness to sell or partner beforehand as in some cases the owners do not wish to lose control. The above activities when performed meticulously leads to potential targets where the chances of completing the acquisition are high. 3) Business Due Diligence Several Indian companies have small scale compared to global standards and operate in niche space. Hence a detailed evaluation of the company’s business needs be done to establish the actual benefits to the acquirer. While it is a given that financials need to be looked at in detail to avoid overpaying, other aspects such as product quality, track record of company etc. which are critical in evaluating such companies. This helps the acquirer in taking the right decision. 4) Successful post-merger integration – As most companies are family run businesses, the execution team has been built over many years. In such cases, the integration needs to especially take into account that no unwarranted fears regarding lay-offs, restructuring, reporting
ABOUT TATA STRATEGIC MANAGEMENT GROUP Tata Strategic Management Group, setup in 1991, is the largest Indian owned Management Consulting firm. We enhance client value by providing creative strategy advice, developing innovative solutions and partnering in effective implementation.
ABOUT THE AUTHORS:
© Tata Strategic Management Group, 2014. No part of it may be circulated or reproduced for distribution without prior written approval from Tata Strategic Management Group.
MANISH PANCHAL Practice Head – Chemicals, Energy, Supply Chain and Sustainability TATA Strategic Management Group Email: manish.panchal@tsmg.com
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relationships in employees creep up. Since many of the specialty chemical companies are structured differently as compared to global companies, organizational structure and roles and responsibilities needs to be appropriately defined for a smooth integration.
AN OPPORTUNITY NOT TO BE MISSED India’s specialty chemical sector has demonstrated good growth in the past years and is expected to continue to grow around 2 times the GDP in coming years. M&A activities have shaped up the industry to where it is today and in future this trend is expected to accelerate as Indian companies are seeking partnerships for scaling up or are looking for exit routes through sell-outs. Several successful M&A’s in the sector show that acquisitions do provide a significant growth opportunity and give international players quick access to Indian markets. Global companies looking to establish presence in India and planning to ride the growth wave in specialty chemical sector should proactively look-out for hidden jewels in Indian specialty chemical sector.
REFERENCES:
1. Tata Strategic Specialty Chemicals Tracker 2. M&A activity in Indian Chemical Sector - Bloomberg Database 3. Chemical Weekly 4. Relevant business articles in Mint, Business Standard, Financial Express and Economic Times e-newspaper regarding M&A transactions
CHARU KAPOOR Principal - Chemicals TATA Strategic Management Group Email: charu.kapoor@tsmg.com
BINAY AGRAWAL Project Leader - Chemicals TATA Strategic Management Group Email: binay.agrawal@tsmg.com
This issue sponsored by http://www.aiche.org/CCPS/Publications/Beacon/index.aspx www.aiche.org/ccps
Messages for Manufacturing Personnel
www.iomosaic.com
Thirty Years Ago – An LPG Tragedy
November 2014
At about 5:30 AM on November 19, 1984 there was a major fire and a series of explosions at a liquefied petroleum gas (LPG) storage and distribution terminal at San Juan Ixhuatepec, Mexico City, Mexico. There were approximately 600 fatalities, approximately 7,000 injuries, 200,000 people were evacuated, and the terminal was destroyed. The blasts were recorded on a seismometer 20 km (12.4 miles) away, and the largest blast registered 0.5 on the Richter scale. Most of the injuries and fatalities were in the surrounding community – people were living as close as 130 m (425 ft.) from the terminal. The cause of the accident could not be definitively established because of the destruction of the facilities and absence of witness reports. It is believed that LPG leaked from a tank or pipeline into a walled enclosure. LPG vapors formed a flammable vapor cloud about 2 m (6.6 ft.) high. The cloud was ignited, possibly by a ground flare. There is evidence that some storage tanks in the facility may have been overfilled, leading to diversion of LPG flow to ground flares. The initiating release may have come from overfilling a tank or overpressure of one of the storage tanks. Many causes contributed to the disaster, including the design of the terminal ( for example, inadequate spacing of tanks, ineffective gas detection, lack of passive fire protection systems), destruction of the fire fighting system by the explosions, improper maintenance of safety equipment, and a large number of people living close to the terminal.
Did you know?
What can you do?
Although there were many facility design factors which contributed to the disaster, it is also reported that the local plant safety committee found a number of operational safety problems before the incident. Housekeeping was poor 30-40 % of safety devices, including fire water spray systems, were inoperative or bypassed A relief valve on an LPG receiving manifold was missing Pressure gages were inaccurate and in poor condition
Understand the magnitude of a potential incident in your plant, and what safety systems are in place to prevent and mitigate the event. Report all failures of safety systems and equipment and ask your management to have them repaired. Check that all pressure relief devices are inspected and maintained as required by your plant’s policy. Confer with your safety and production engineers to determine how to manage risk, including the possibility of shutting down, if critical safety equipment is not working properly. Remember that poor housekeeping in a plant is often a symptom of a poor safety culture. Take care of your plant and all of its equipment, especially safety equipment.
Take care of your plant’s safety systems so they can take care of you! ©AIChE 2014. All rights reserved. Reproduction for non-commercial, educational purposes is encouraged. However, reproduction for any commercial purpose without express written consent of AIChE is strictly prohibited. Contact us at ccps_beacon@aiche.org or 646-495-1371.
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66 z CHEMICAL NEWS NOVEMBER 2014
ADDRESSING WORK EXECUTION THROUGH INTEGRATED TECHNOLOGY PROVIDES NEW LEADING INDICATORS TO IMPROVE OPERATIONAL RISK MANAGEMENT Michael Neill & Scott Lehmann [This paper was presented at the American Institute of Chemical Engineers – the 8th Global Congress on Process Safety – held in Houston, TX, USA, during April 1-4, 2012] Part 1
KEYWORDS: Operational Risk
Management, Work Management, Control of Work, Task Risk Assessment, Safe Work Control, Integrated Safe System of Work, ISSOW.
ABSTRACT Operational Risk Management is now a board level challenge for all companies in our industry. Recent tragic events strongly indicate a lack of awareness and understanding of the major process safety hazards and their risks by the frontline. This increases the potential for further process safety incidents. Furthermore, the lack of visibility of frontline cumulative risk and overall risk profiles is seriously impacting management efforts to fundamentally improve operational risk management and the efficiency and effectiveness of frontline operations. To address these issues, a fundamental change in the way frontline operations are managed is needed. New processes are required that operationalize the safe work execution rules and
establish structured processes to ensure that people are guided to the correct operational decisions that are appropriate to their conditions and context. Technology can be a significant enabler of business process in oil and gas industry as it has been for other industries. Frontline operations have changed very little in the past 40 years making it difficult for frontline workers to consistently make the right decisions without the right tools. It is ironic that supermarket checkout operators have access to more technology than frontline technicians yet the consequences of each making mistakes bears no comparison. The added benefit of deploying the right technology in frontline work execution is the access to real data that is generated as part of routine frontline work. This data can provide insight into how work is actually is done, how well it is planned and how well engaged the frontline is in process safety management. For the first time, management is able to have access to new leading indicators of both operational risk
and work efficiency. Management can now exercise oversight and use the data to not only demonstrate compliance but build the foundation for continually improving operational performance.
INTRODUCTION Managing operational risk and improving line of sight on operations are ongoing challenges for the Oil and Gas industry and have become board level priorities for most companies. Traditionally, organizations address these challenges with better rulebooks, new “leading” or “lagging” indicators, improved best practices and more robust procedures. However, more often than not there is no noticeable decrease in the number of HiPO’s, incidents and fatalities. The continued focus on “finding and fixing” problems rather than building a culture of “predict and prevent” is at the heart of the challenge. Managing operational risk is a complex area in which the industry currently faces a number of common safety challenges. In recent years the industry has placed focus on CHEMICAL NEWS NOVEMBER 2014 z 67
personal safety which may have resulted in a process safety blind spot. The senior health and safety manager for BP drilling operations in the Gulf of Mexico confirmed this at the Deepwater Horizon Joint Investigation inquiry. He told the Inquiry that his focus was on occupational safety, not process safety - that was a matter for engineering authorities. [1] Safety for him was about whether the job of pushing the button or turning the wrench had risks specifically for the person carrying out this action. By implication, whether pushing the button or turning the wrench was the right thing to do in the circumstances, whether it might lead to an explosion, was not his concern. While major accidents all have specific technical root causes, contributing factors or failings; they all can also be traced back in part to varying degrees of failings in work execution. From Deepwater Horizon to Buncefield to Texas City to Piper Alpha to the wider number of lesser known accidents and incidents, the same themes of sub-par risk assessments, management of change issues relating to barrier or system impairment and an inappropriate level of rigor over control of work appear time and time again. Most formal investigations also recognize the failure of management to understand the actual state of the plant, how the hazards were being managed and a lack of proper oversight and management. The Chief Counsel’s Report; National Commission on the BP Deepwater Horizon Oil Spill And Offshore Drilling Report to the President, was very direct in stating that Macondo was more than a series of disparate technical failures but an overarching failure of management; “Ultimately, the companies placed undue reliance on timely intervention and human judgment in light of their failure to provide individuals with the information, tools, and training 68 z CHEMICAL NEWS NOVEMBER 2014
necessary to be effective.”[2] Even in today’s technologically advanced environment, most companies continue to provide their frontline work teams with nothing more than paper forms in triplicate as their means of control. While the content of these forms may be very sophisticated, they function as nothing more than a checklist. Frontline work execution is widely addressed with varying degrees of success using paper based systems such as Permit to Work, Job Safety Analysis (JSA) and Lock Out Tag Out (LOTO). The lack of embedded process rigour in these systems virtually ensures the inconsistent application of work execution processes, governing controls, permits, isolations and approvals. Risk analysis and management conducted in advance during the design of the plant and its operations as well as during the planning phase seldom take into account the ad-hoc and non-routine nature of frontline work during the execution phase. With only paper forms and processes, frontline workers have limited tools to engage in Process Safety Management (PSM) or help them make the right decisions. More importantly, this lack of automation also means that management has limited or no visibility, oversight or control over how efficiently or safely the work was performed. Ongoing governance efforts are typically based on leading and lagging indicators that are generally “rear view” metrics and an auditing process that is too infrequent, reactive and compliance driven. Even in the best of cases this can only ever provide part of the answer. These indicators are generally not focused on what will happen today, tomorrow or in the near future as they look at past performance and try to extrapolate trends and determine risk areas to address. Indicators or metrics are useful only if they result in effective intervention. Given the absence
of data from frontline work activity it’s understandable the industry struggles to establish line of sight on its actual frontline operational risk. It should therefore be no surprise that Work Execution is the area where most incidents occur in a plant, where injuries and fatalities are most prevalent and where escalation can pose the greatest risk to process safety. Workers are effectively isolated and forced to rely on their individual skills and competencies. Lessons learned are lost, feedback loops are missing and best practices are not promulgated throughout the business. For all practical purposes the single greatest area of risk, Work Execution, is tackled by individual competency. To date there has been limited investment in process and technology in work execution space outside of improved rulebooks which lack the means to truly be embedded and operationalized. This is surprising given the risk exposure in this space. It is ironic that supermarket checkout operators have access to more technology than frontline technicians, yet the consequences of each making mistakes bears no comparison. Frontline operations have changed very little in the past 40 years making it very difficult for frontline workers to consistently make the right decisions without the right tools and engagement in PSM. Significant pressure is placed on the shoulders of those who issue and approve work based on a limited paper based system to get day to day operational risk right. As an industry we have to question ourselves whether we are providing our people who have to manage high volumes of mission critical work on multi-billion dollar plants with the appropriate tools, information, process and training. To address these issues, a fundamental change in the way frontline operations are managed is needed. New processes are required that operationalize the
safe work execution rules and establish structured processes to ensure that people are guided to the correct operational decisions that are appropriate to their conditions and context. Technology can be a significant enabler of business process in oil and gas industry as it has been for other industries.
and compromise protective barriers in order to access the plant and equipment. As the image below (fig. 1) illustrates, WE is not only a key part of the puzzle, it is where the plan, the procedures and the design of the plant interact with the day to day realities. WE includes all aspects of planning, controlling and executing all work tasks being carried out on hazardous plants. Some companies refer to WE using different terms such as Control of Work, Work Management or Work Control. The majority of this work will be maintenance, repair or construction but it can also include routine tasks necessary to support the operation. The term encompasses all aspects of work management including permit control, Isolations and reinstatements or Lock Out Tag Out (LOTO), Task Risk Assessment or Job Safety Analysis, Temporary Defeats/ Inhibits/ Override etc. In general it includes all work which needs to be controlled due to its hazardous nature, the lack of
WORK EXECUTION Frontline work execution is a key PSM blind spot. Work Execution (WE) is where work gets done on a plant and where Process Safety and Occupational Safety meet. The operational risk directly associated with WE is not particularly addressed by conventional PSM approaches as they tend to focus on plant design and plant operation and less on planned interventions such as maintenance, repair and construction activities carried out on live plant. This is the riskiest part of operations as it is where frontline workers introduce new hazards to the plant and regularly dismantle
FIGURE 1: WORK EXECUTION SPACE
Process Safety Management Design
Build
Operate
Production
Work Execution
Safe, Reliable, Sustainable & Compliance Operations
Reputational Risk
Operate the Plant Maintain the Plant Maintain the Equipment
Occupational Safety
Manage Interventions
familiarity of the people involved, or the need to coordinate multiple ongoing tasks and operations. It usually does not include routine operational work such as startup and shut down of plant. The reason why WE is important to plant safety is that it is the primary source of fatalities (after road traffic accidents) according to a study carried out by a Major Oil Company. [3] In this study three factors relating to “Work Control” were identified: Planning of Work; Work Rules, Policies, Standards and Procedures; Management, Supervision and Leadership. Reviewing fatal industrial accidents over a 5 year period it was found that ninety percent (90%) of them had one of these as a contributory factor. Seventy one percent (71%) had two of them and thirty percent (30%) had all three. Similar statistics from other companies about fatalities and major incidents indicate the same contributory factors so clearly getting WE right is critical to the safety and welfare of our plant workers. PSM is all about avoiding major accident hazards. If we look at some of the well-publicized major accidents such as Piper Alpha, Texas City, Buncefield, Phillips Pasadena, etc. we see that they all involve varying degrees of failing in WE. Michael Ferrow, the General Manager of Engineering and Technical Assurance at ConocoPhilips (UK), in his SPE paper entitled, “An Operating Management System to Deliver Safe Operations”, furthers this by stating, “the other conclusion in looking at all of these accidents (Oppau, Germany; Feyzin, France; Flixborough, UK; Piper Alpha, UKCS; Texas City, USA; Buncefield, and UK; Deepwater Horizon, USA) was that in almost every case there were three clear contributors: z Absence of adequate risk assessment and understanding z Management of change z Inadequate control of work at the workface [4] CHEMICAL NEWS NOVEMBER 2014 z 69
Given this importance, it is surprising that WE has not gained greater prominence in the debate around plant safety and even within OSHA PSM itself where the emphasis is on plant design and maintaining integrity of equipment. In other words, keeping the product in the pipes and vessels through the systematic design of multiple barriers and measures to minimize/ contain releases and mitigate consequential fires, explosions or toxic clouds. All of this is vital to safe plant operations but when we examine typical WE operations, we see that often these barriers are deliberately removed, safety devices inhibited and new hazards are introduced to the workplace in the course of carrying out work. For example: to access, replace or repair equipment it is often necessary to break containment of hydrocarbon bearing systems; safety related devices such as alarms and shutdown systems frequently need to be inhibited or taken out of service to perform work without shutting down the plant; accessing equipment often involves working at height or having to perform heavy lifts over live plant. Such scenarios are daily occurrences on most plants. More often than not, this work is taking place inside a live plant where production has to be maintained while the intervention work is carried out. The work, by necessity, brings people into the plant area putting them at risk. The majority of frontline workers will be 3rd party contractors less familiar with the hazardous plant on which they are working and perhaps less competent to understand and address the process hazards surrounding them. A further complication is that typically multiple jobs of work need to be managed simultaneously on the same plant with the potential for work clashes and compounded risks. The types of hazards being managed in WE are a combination of Process Hazards, e.g. flammable/ 70 z CHEMICAL NEWS NOVEMBER 2014
explosive hydrocarbons under pressure; equipment hazards such as rotating equipment; occupational hazards such as working at height; dropped objects and environment hazards such as confined spaces, temperature, noise, etc. These examples are not comprehensive and the list of hazards is endless, as is the manner in which they can combine and escalate to a major incident. It is important to note the wide range of hazards and that this is not merely about “slips, trips and falls” or those hazards with the potential to cause minimum harm to individuals. Managing the risk posed by process hazards is paramount, particularly for those working in close proximity to and with less familiarity of such hazards. Another important aspect of hazards introduced through WE is that they are dynamic and constantly changing from day to day, hour to hour depending on ongoing activities. The process hazards, on the other hand, are relatively constant for a well-designed and well maintained plant operating steadily. Even with process upsets, the design of the plant and its control should be able to manage these without risk of loss of containment. Plant control systems are designed to operate within design limits and shutdown systems automatically take over if operators exceed these designs. In WE, safety relies on people making the right decisions and on their adherence to policies and procedures. With each day typically presenting different hazard risk challenges and with inadequate tools to support the decision making process it is not surprising that WE related incidents occur.
HOW WORK IS CURRENTLY MANAGED Most plants use a permit to work system (PTW) to control work, especially that being carried out by contractors. The Shift Crew who are managing the operations of the plant
use the PTW system to authorize work on their plant safely, integrating it with ongoing plant operations. Traditionally, the permits are paper forms where tasks are described, hazards and controls specified and relevant authorities have to sign before work can commence. Some form of risk assessment, where hazards are identified and controls specified will accompany these forms, such as a Task Risk Assessment (TRA) or Job Safety Analysis (JSA) and where necessary a separate Isolation scheme (LOTO – lock out tag out) will be referenced. Often these jobs will continue through several days being reauthorized at the start of each shift. Good practice calls for job site visits prior to commencing the job to evaluate all hazards and be able to perform a more thorough TRA or JSA. Often Operators will have a variety of work permit categories depending on the type of work. Examples include Hot Work Naked Flame; Hot Work Spark Potential; Cold work; Breaking Containment, etc. Routine work where the work is repetitive and the hazards are relatively low and predictable can be managed by other means such as permits which require lower levels of authorization or standard operating procedures (T-Cards) or just with a JSA. Controlling work in and access to confined spaces is another process which is managed by a permit with associated risk assessments, specified barriers, access controls and contingency response plans. Another category of “permit” which has emerged in recent years is the Operational Risk Assessment (ORA). This is not for controlling work but is to acknowledge that a piece of equipment is not performing to design. It is not a substitute for a Management of Change (MOC) process but would likely initiate one. It is simply an operational device to highlight that a defect has been identified. It triggers a process where a risk assessment has been
carried out and a decision made on the controls necessary to maintain operations with an acceptable level of risk for a temporary period until the defect is repaired. Isolation control systems (LOTO) vary from plant to plant but usually include identification of specific point isolations (process and electrical); implementing the scheme and controls necessary to make a work site safe and to subsequently reinstate once the work is complete. Company standards for isolations are enforced and when they cannot be achieved an appropriate risk assessment is carried out. For example, where the service and operating conditions require a “double block and bleed” isolation but only a single valve isolation is possible, this “nonstandard” isolation would need to be risk assessed and additional controls specified before it could be used to provide a reliable isolation. Often the need arises to temporarily override safety critical systems such as alarm/ shutdown systems, fire and safety systems, etc. Such overrides (also known as “defeats” or “inhibits”) are necessary to avoid accidently shutting down the plant whilst maintenance or repair is being carried out. Systems should exist to carefully control this practice according to defined company procedures and where necessary, a risk assessment carried out to specify additional controls or conditions to be implemented whilst the override is in place. Similar processes will ensure that the defeat is reinstated appropriately once work is complete. Too many investigations of incidents have found inhibits in place which had been long forgotten, not being listed on any register and which, as a result failed to take the appropriate action when needed. To appreciate the typical scale of WE, it is not an exaggeration to say that on a sizable refinery there can be as many as 15,000 to 20,000 such work permits, isolations,
overrides carried out each month. This is not surprising when you consider the frontline workforce number in their thousands and that each individual job of work requires managing every day. To think that such prevalent processes in this day and age are still managed with paper forms in triplicate is somewhat embarrassing for an industry which prides itself on the technology advances that it embraces! Furthermore, paper based forms provide neither real data nor a window into ongoing work, thus leaving leadership with little to no oversight over a key and risky part of their operations. Without systems you do not have data and without the capturing of data in this important area of operation, it is extremely difficult for management to improve its adherence to PSM best practices and provide oversight and governance. However, there are organizations that actively use technology based systems that provide real capabilities to improve PSM. These systems have the ability to capture, process and display data which can then be used to determine specific areas where actionable, practical improvement can be achieved. Management thus has the ability to implement targeted improvements to improve operational behavior and reduce overall incident rates.
THE ROLE OF TECHNOLOGY Technology has been a significant enabler of business process improvement in other industries and can provide the basis to address the blind spot of WE and provide real capabilities to improve PSM. It can play an integral role in guiding and structuring decision making by ensuring safety rules, best practices and lessons learned are deeply embedded into operational processes for frontline workers and management. In this way, risk controls and guidance can take shape outside of the “rule book” and
become an integral part of routine operations. The work execution process can be captured thus providing a window into how well frontline operational risks are being managed. Specifically, WE Systems integrate frontline “paper” requirements, linking permit to work with the risk assessment and isolation management processes to create a fully integrated Control of Work System that becomes a system of record for frontline work execution data. The systems incorporate clear process flows for request and approval of work, a direct link to relevant Operating Procedures, readily-accessible archives of previous work (including lessons learned) and area, site and plantlevel overview of all controlled work by approval stage, location, time, type and risk level. This ensures people are guided to the correct operational decisions appropriate to the actual conditions and context of the work at hand. Practical processes combined with consistent leadership and evolving competency can sustain a change in the way people operate, ultimately changing behaviors. Best practices can be consistently applied whether these are rules, regulations, processes or lessons learned, not only providing safety and assurance benefits but also delivering efficiency gains, better ways of working, an improving corporate knowledge base, shorter execution time and reduced administration. Frontline workers can make better operational decisions to deliver safe and efficient operations through the use of technology. It can complement existing safety systems and deliver enhanced safety management allowing operators to proactively identify, evaluate and mitigate risks. The added assurance around core competency is especially valuable in the context of a dynamic frontline worksite undergoing the “big crew change”, the influence of nationalization programs in many CHEMICAL NEWS NOVEMBER 2014 z 71
countries and the increasing mix of core staff and contractors. Frontline workers interact with the systems via a simple web-browser using familiar forms and language. Rules, procedures and standards can be operationalized within the system to provide enhanced and structured decision making around risk assessment requirements, permit usage, isolations and Temporary Defeats. Approval levels are either built-in to the process flow or handled by interaction of the relevant plant authorities as required. As part of day-to-day operations, the frontline workers interact with the system, ensuring that PSM elements such as Hot Work Permits, Mechanical Integrity and Safety Reviews/Risk Assessments are utilized correctly. Furthermore, by using the system as a delivery channel to the workforce, relevant Operating Procedures, Safety Alerts and Lessons Learned are made readily available. Rich data is automatically collected through user interaction with the system thus providing the ability to provide an expanded, more concrete set of practical leading and lagging indicators. Management of change is less of an issue than it seems as frontline workers are typically the first to embrace and flourish within the embedded process rigour and clear boundaries that WE solutions provide. By establishing consistency with regard to the working conditions in which they are operating, the familiarity with systems and processes reduces risk. Work Executions ensure that the company policies and practices are actually being used on the ground and are effective as work cannot be done without using the WE system. The next generation workforce can learn effective lessons from frontline data captured by the system, which provides valuable insight into how work is actually done. For the first time incident and accident information can be provided to the 72 z CHEMICAL NEWS NOVEMBER 2014
frontline in context with the work they are about to do, thus helping to lower the worryingly high rate of repeat incidents in the industry.
THE DATA Technology deployed in support of frontline WE provides access to data that is generated as part of routine work. The rich data inherent in building and completing permits, risk assessments, interventions and other elements can be captured in planning, execution and completion modes. This data can provide insights into how work is actually carried out and the degree to which the frontline is engaged with PSM. In use, the system delivers high value information to the plant authorities. Approval lifecycles for each piece of work provide a clear audit trail. The current, past and future status of all work on the plant is clearly visible; on a timeline and by location. Potential work conflicts are highly visible to the plant authorities, and managed in advance rather than at the time. Pre-work requirements ranging from hazard controls (e.g. barriers), access needs (e.g. scaffolding, confined space entry) and plant isolations (e.g. electrical, mechanical) can be planned and implemented more efficiently. Frontline workers have access to lessons learned; sharing previous experience at their own worksite and from other worksites in other areas or other plants. Over time, the data collected can be used to provide visibility and accountability, as recommended by the International Association of Oil & Gas Producers provided in the report ‘Process SafetyRecommended Practice on Key Performance Indicators’, “As such incidents [resulting from multiple, simultaneous barrier failures] do not occur very frequently, it can take a very long time to gather statistically relevant data on major incidents alone. Therefore, systems need to be implemented for consistent
collection and analysis of data and related information on more than just major incidents.” [6] For the first time, management is able to access not just relevant historical data, but also new leading indicators of both operational risk and work efficiency. Real time risk profiles can be generated and viewed as they change throughout the shift providing visibility across the plant and also outside the plant. Management can exercise oversight and use the data to not only demonstrate compliance but build the foundation for continuous operational performance improvement.
CUMULATIVE RISK – WHAT IS IT AND HOW TO MEASURE IT By better understanding what defines frontline cumulative risk, we have the key to developing valuable leading indicators that can determine risk trends and therefore encourage better decision making and considerably improve process safety management. In frontline WE, managing cumulative risk applies not only to the sum of the parts of one job including the hazards, controls, external factors, but to all of the daily tasks and procedures being carried out on an installation and their interaction and impact upon each other. It is not unusual for 20 or more independent jobs to be in progress simultaneously within a defined area. Whilst these individual tasks may have been independently risk assessed and authorized, there are dependencies and interactions between the jobs that need to be taken into consideration in order to reduce the potential overall risk of the combined jobs. This section looks at what this means in practice and the best way to examine it, is to look at an everyday example. Let’s consider a typical section of a plant, for example, the Alkylation unit of a refinery. For simplification, we will assume that the major process hazards which
must be considered are a) the large inventory of explosive and flammable hydrocarbons and b) a volatile acid catalyst which is corrosive and toxic. On any given day the plant is live with a high throughput and these fluids are being contained in the pipes and vessels which have been designed for such service. Contingent systems are in place to detect loss of containment and to take action to mitigate any consequences such as system shutdown and de-inventory, fire detection and water deluge, acid detection and water spray systems to knock down any release cloud. Emergency response plans will deal with evacuation, shelter and containment action to be taken by the Operations Team. With steady conditions and a well maintained plant, the process hazards are relatively predictable. The containment and contingent measures significantly reduce the risk to a predictable, constant and acceptable level but do not eliminate them altogether. They are,
however, not the only hazards to be considered and these others tend to be less constant varying from day to day reflecting the reality of plant operations. Before we even look at WE activities, there are some Human Factors aspect which could be considered “hazardous” created by the Plant Operator team on shift at any time. In the example shown above (fig. 2), there are typical Operations duties: sampling, chemical loading, preparing equipment for maintenance (LOTO), daily readings, permit issuing, gas testing, transfers, etc. Nothing too unusual but these activities put people out on the plant working in hazardous areas. Another typical example could be that the Shift Supervisor is on vacation and a Senior Operator is stepping up. Similarly, the Senior Operators role is being filled by a step up from the ranks. Whilst not being abnormal, it does create a reduction in the overall experience and competence of the shift and their ability to make the
Typical day on part of a live Refinery FIGURE 2: REFINERY ALKYLATION PLANT Alkylation unit Typical day on part of a live Refinery Alkylation unit
right decisions. As such, it has to be seen as an increase in operational risk, the degree to which will depend on the experience gap. Other Human Factors and environmental conditions could also include contractors less familiar with the plant and its process hazards as well as prevailing working conditions – primarily climate related but also worker fatigue, travel times prior to arrival at the plant or distractions such as industrial action , wage/ contract negotiations or personal crises at home. All these human and environmental factors can be difficult to measure or control but they do have an impact and are often cited as contributing factors during incident investigations and therefore have to be recognized as impacting operational risk. On the WE front, let’s look at all the work which is planned for this one particular day. The diagram below (fig. 3) shows the same site with icons representing individual work tasks.
Main Process Hazards: Large volumes of light hydrocarbons – flammable/ explosive: Volatile HF acid catalyst – corrosive & toxic; system pressure of 100 psi Main Process Hazards: Large volumes of light hydrocarbons – flammable/ explosive: Volatile HF acid catalyst – corrosive & toxic; system pressure of 100 psi
Environmental Conditions: Daytime temp highs 100deg+ 95% humidity, no Environmental wind Conditions: Daytime temp highs 100deg+ 95% humidity, no wind Operations duties: Product sampling, chemical delivery unloading, installing isolations (LOTO), daily readings, permit issuing, gas testing, tank transfers, etc. Human Factors: Shift Supervisor on vacation, Operations duties: Product chemical Senior Operator stepping up:sampling, All work being carried delivery unloading,– installing isolationsnecessary (LOTO), out by contractors close supervision daily readings, permit issuing, gas testing, tank transfers, etc. Human Factors: Shift Supervisor on vacation, CHEMICAL NEWS NOVEMBER 2014 z 73 Senior Operator stepping up: All work being carried out by contractors – close supervision necessary
FIGURE 3: LIVE REFINERY ALKYLATION PLANT
Typical day on part of a live Refinery Alkylation unit Welding repair on lighting post
Scaffolding installation
Temp. defeat of flame detectors
ORA – faulty level switch on vessel Installing blinds
Use of electrical driven water pump for power spraying
Main Process Hazards: Large volumes of light hydrocarbons – flammable/ explosive: acid catalyst – corrosive & toxic; system pressure of 100 psi
Environmental Conditions: Daytime temp highs 100deg+ 95% humidity, no wind
Confined Space Certificate for vessel entry
Filter change outs
Vessel Cleaning / chemical treating
Table 1 on the right page lists all the work which is scheduled for this particular day, the manner in which it is controlled as part of the WE system, a selection of the hazards associated with the work and some of the controls necessary to minimize the risk to an acceptable level. Residual Risk – This is defined as the level of risk which remains for each hazard once controls or barriers are in place In all these instances, as part of the WE process, hazards would be identified, risk assessments carried out and the appropriate controls put in place to safely execute the work. In almost all cases the risk is never eliminated but reduced to a level deemed to be acceptable. Typically the methods used to evaluate these hazards and identify controls are relatively informal sometimes based on check lists 74 z CHEMICAL NEWS NOVEMBER 2014
Pump PM: vibration checks, pump alignment, oil changes, motor greasing, transmitter callibrations
Operations duties: Product sampling, chemical delivery unloading, installing isolations (LOTO), daily readings, permit issuing, gas testing, tank transfers, etc. Human Factors: Shift Supervisor on vacation, Senior Operator stepping up: All work being carried out by contractors – close supervision necessary
and standard practices but often just qualitative judgments carried out by individuals. Some operators use semi-quantitative assessment methods for more hazardous tasks. With these, a matrix of probability and consequence is used to guide a team of people. Using such a method, each hazard is identified and the initial risk (probability and consequence) is assessed. Controls are then specified which either reduce the possibility of the event occurring or reduce or mitigate the consequence should it occur. The residual level of risk is typically assessed, i.e. with controls in place. Figure 4 below shows an example of such a semi quantitative TRA matrix as illustrated in the Task Risk Assessment Guide published by Step Change for Safety, a North Sea cross industry forum for safety improvement.
Table 1 and Figure 4 above represent a typical day on a plant. The point of this example is to demonstrate that the work activities which vary from day to day add a level of operational risk which is higher than for simply operating the plant. The residual risks posed by the process hazards are still present but there are now additional hazards to personnel for the Operations Team to manage. As explained earlier, each job of work is managed independently to minimize the residual risk posed by each hazard. The cumulative effect of each hazard’s residual risk is seldom assessed formally but is tacitly acknowledged as being acceptable when a permit is issued for the work to commence. The cumulative effect of multiple jobs coupled with the process hazards and any human factor or
TABLE 1: EXAMPLE OF WORK, HAZARDS AND SELECTED CONTROLS WORK CONTROL CERTIFICATE Hot work naked flame permit
SELECTED HAZARDS (in addition to process hazards) Ignition source, welding flash, UV light source, molten metal
SELECTED CONTROLS
Inhibiting Flame detectors Vessel Cleaning / chemical Treating Working in Confined Space
Temporary Defeat
Reduction in fire detection system Corrosive vapours, breathable atmosphere, confined space, Confined space, process hazards, hydrocarbon residue, visibility, heat exhaustion
Minimise inhibit time, fire watch
Scaffolding Installation Installing blinds for vessel entry
Cold Work Permit
Filter change outs
Routine
Pump maintenance Faulty level switch on KO vessel
Routine
Power spraying using electrical pressure pump
Hot work spark potential Permit
DESCRIPTION Welding repair on lighting post
Cold Work Permit Confined Space Entry Certificate
Breaking Containment Permit
Operational Risk Assessment
Gas testing, protective clothing, inhibit UV detectors, protective blanket, fire watch
Dropped objects, working at height, small bore pipework Breaking containment of hydrocarbon / pressure system, manhandling heavy blinds, dropping hazard on small bore pipework (SBP) Breaking containment. Low volume hydrocarbon release. Potential for trapped pressure. Rotating equipment. Noise, Vibration Compromise of alarm system to warn of high levels in vessel. Risk to plant shutdown. Risk to overspill into flare system Ignition source. Hi pressure jetting – equipment damage
Breathing apparatus, confined space entry controls Positive isolations from main process, entry watch and controls, continuous gas monitoring, breathing apparatus, lighting, atmosphere venting, rescue party, time limits Tethered tools, protection of vulnerable SBP, kick boards. LOTO procedures to isolate, de energise, flush and drain contents. Care on first opening. Proper lifting procedures. Protection of SBP. Standard procedures. Gas monitoring. Personal isolations. Spill capture equipment. Personal isolations. Correct PPE. Appropriate communication Frequent monitoring of vessel levels until switch can be changed out. Frequent checks on shutdown switch functionality. Monitoring after process changes or upsets. Gas monitoring. Protection of sensitive equipment.
FIGURE 4 – EXAMPLE OF A SEMI QUANTITATIVE TASK RISK MATRIX [5] Hazard Severity 1 2 Negligible injury, Minor injury no absence requiring first aid from work treatment
Likelihood of Occurrence
ICON
1 A freak combination of factors would be required for an accident to result 2 A rare combination of factors would be required for an incident to result
3 Injury leading to a lost time accident
4 Involving a single death or serious injury
5 Multiple deaths
1
2
3
4
5
2
4
6
8
10
3 Could happen when additional factors are present but otherwise unlikely to occur
3
6
9
12
15
4 Not certain to happen but an additional factor may result in an accident
4
8
12
16
20
5 Almost inevitable that an incident would result
5
10
15
20
25
CHEMICAL NEWS NOVEMBER 2014 z 75
FIGURE 5: CUMULATIVE RISK BUILD UP
Cumulative Risk
Simple representation of Cumulative Risk build up in one area of the plant As the number of concurrent work activities, non standard isolation and ORA’s are taken into account the overall cumulative risk increases
Risk level from process hazard and environmental / HF without considering WE activing
Residual risk from ORA Residual risk from Non std. Isolation
Considering just a single task
Residual risk from Task 2 Hazards
Residual risk from Process Hazards
Residual risk from Task 3 Hazards
Residual risk from Task 1 Hazards
Residual risk from Task 1 Hazards
Risk from Environmental/ human factors
Risk from Environmental/ human factors
Risk from Environmental/ human factors
Residual risk from Process Hazards
Residual risk from Process Hazards
Residual risk from Process Hazards
environmental hazards are seldom assessed in a formal manner on a day to day basis. Work schedules are assessed for clashes where two or more jobs may interfere with each another but we do not equip our plant supervisors with the right tools and techniques to properly assess these types of risks. In other words, decisions are being made without full information; decisions which sometimes can lead to catastrophic failure. Figure 5 above shows in a simple representation how the overall operational risk in any particular
area of a plant accumulates as we consider the residual risk from the process hazards, additional risk from environmental and Human Factors, residual risk from the several jobs planned to be executed simultaneously in that area of the plant. [To be continued in next Issue of CHEMICAL NEWS....]
[3] BP Control of Work Safety Booklet B, 2005 [4] Ferrow, Michael, “An Operating Management System to Deliver Safe Operations” SPE, 2011, p.5. [5] Task Risk Assessment Guide, Step Change in Safety, 2007 [6] Process Safety, Recommended Practice on Key Performance Indicators, November 2011, p.10.
REFERENCES
[7] Process Safety Performance Indicators for the Refining and Petrochemical Industries API Recommended practice 754, April 2010
[2] The Chief Counsel’s Report; National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling Report to the President, p.225.
[9] The Report of the BP US Refineries Independent Safety Review Panel (Baker Panel Report) January 2007
[1] Deepwater Horizon Joint Investigation Transcript – May 26, 2010, p.395.
[8] What We Don’t Know Will Hurt Us- Using Safety Leading Indicators as the next Step in Controlling Risk, speech, October 2009
AUTHORS: MICHAEL NEILL, President, Petrotechnics USA Inc., 11210 Equity Drive #250, Houston, TX 77041, USA mike.neill@petrotechnics.com SCOTT LEHMANN, VP Product Management & Marketing, Petrotechnics Ltd., Pavillion 5, Craigshaw Road, Aberdeen, AB12 3QH, Scotland scott.lehmann@petrotechnics.com COURTESY: MR. SCOTT BERGER, Executive Director, Center for Chemical Process Safety, AIChE, Three Park Ave, New York, NY 10016, USA, http://www. ccpsonline.org. Tel: +1.646.495.1370, fax: +1.646.495.1504, mob: +1.609.462.505 & 98335 44780 (India). The Center for Chemical Process Safety (CCPS) was founded by the American Institute of Chemical Engineers in 1985 to give engineers the tools they need to prevent further accidents like Bhopal. Since that time, CCPS has published more than 70 books on all aspects of process safety and established a dynamic university curriculum for process safety. CCPS is supported by the contributions and voluntary participation of more than 80 companies around the world. For more information about CCPS, please visit www.ccpsonline.org or contact ccps@aiche.org.
76 z CHEMICAL NEWS NOVEMBER 2014
CHEMICAL NEWS NOVEMBER 2014 z 77
ECONOMIC REVIEW Compiled by MR. BIPIN JHA, Executive-Corporate, Excel Industries Ltd.
1
According to the latest “World Economic Outlook” report of the International Monetary Fund (IMF), India’s 2014 GDP growth has been projected marginally upward to 5.6% from its July forecast of 5.4%. But, the projection for India’s 2015 GDP growth has remained unchanged at 6.4% according to the report. 78 z CHEMICAL NEWS NOVEMBER 2014
2
Gross Direct Taxes collections during AprilSeptember 2014-15 increased by 15 percent and stood at Rs.3,46,144 crore as compared to Rs. 3,01,063 crore collected during the corresponding period of last fiscal year. Gross collections of Corporate Tax increased by 15.31 percent and stood at Rs.2,22,616
200
Industrial Sector
BKJ : 15.10
Index of Industrial Production : General
(Base : 2004-05 = 100)
crore as compared to Rs. 1,93,054 crore collected during the same period last year. Gross collection of Personal Income Tax, including STT and Wealth Tax, increased by 14.37 percent and stood at Rs. 1,23,528 crore as compared to Rs. 1,08,009 crore collected during the corresponding period of last financial year.
3
The Centre’s Indirect tax collections at Rs 2,41,811 crore increased by 5.8 per cent during April-September 2014-15 compared to Rs 2,28,619 crore during the corresponding period last year. Excise collection declined marginally by 0.6 per cent to over Rs 75,021 crore. Customs collections increased by 5.5 per cent to over Rs 89,324 crore. Service tax collections increased by 13.1 per cent to Rs 77,466 crore during the period.
4
The eight core infrastructure industries growth - crude petroleum, petroleum products, coal, electricity, cement, Natural Gas, Fertilizers and finished steel recorded growth of 4.4% in AprilAugust 2014 compared to growth of 4.2% posted in April-August 2013. During April-August 2014, crude oil production posted negative growth of 1.2% as compared to decline of 1.6% in April-August 2013. Petroleum refinery products declined by 2.7% in April-August 2014 as against the rise of 4.6% during April-August 2013. Coal witnessed growth of 7.2% compared to growth of 0.2% in April-August 2013. Cement registered growth of 11% as compared to growth of 3.1% recorded in April-August 2013. Electricity witnessed growth of 11.3% in April-August 2014 compared to growth of 4.4% in April-August 2013. Finished steel posted growth of 2% in April-August 2014 as compared to handsome growth of 13.3% during the corresponding period in 2013. Natural gas declined by 5.8% in AprilAugust 2014 as compared to decline of 17% in AprilAugust 2013. Fertilizers growth increased by 2.8% in April-August 2014 as compared to growth of 1.8% during April-August 2013.
5
Data on Index of Industrial Production (IIP) with the base year 2004-05, released by the CSO show that industrial production increased by 0.4% in August 2014 as compared to same growth of 0.4% in August 2013. The manufacturing sector, which accounts for about 80% of the weightage in the IIP, declined by 1.4% in August 2014 as compared to decline of 0.2% in August 2013. The mining sector increased by 2.6% in August 2014 as against the decline of 0.9% in August 2013. The Electricity achieved growth of 12.9% as compared to growth of 7.2% during August 2013. During April-August 2014, industrial production increased by 2.8% as against nil growth during April-August 2013. The manufacturing sector posted growth of 1.8% in AprilAugust 2014 as compared to decline of 0.1% in April-
180
2013-14
2014-15
160
2012-13
140 120
220 200
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Industrial Sector
BKJ : 15.10
Manufacturing : Production Index
(Base : 2004-05 = 100)
180 160
2012-13 2014-15
2013-14
140 120
220 200
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Industrial Sector
BKJ : 15.10
Index of Industrial Production : Electricity
(Base : 2004-05 = 100)
2014-15
2013-14
180 160
2012-13
140 120 100
200 180
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Industrial Sector
BKJ : 15.10
Basic Goods : Production Index
(Base : 2004-05 = 100)
2014-15
2013-14
160 140
2012-13
120 100
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
CHEMICAL NEWS NOVEMBER 2014 z 79
August 2013. The mining sector recorded growth of 2.5% in April-August 2014 as compared to decline of 3.6% during April-August 2013. The Electricity achieved growth of 11.7% as compared to growth of 4.5% during AprilAugust 2013.
6
Going by the use-based classification of IIP data, in August 2014, the production of Capital Goods segment of the manufacturing industries declined by 11.3% as compared to decline of 2% in August
410 360 310
Industrial Sector
BKJ : 15.10
Capital Goods : Production Index (Base : 2004-05 = 100)
2014-15
2013-14
2012-13
260
7
210 160
180
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Industrial Sector
BKJ : 15.10
Intermediate Goods : Production Index (Base : 2004-05 = 100)
2013-14
2014-15 140
100
360 328
2013. Intermediate Goods production increased by 0.3% in August 2014 as compared to rise of 3.8% in August 2013. Basic Goods sector witnessed growth of 9.6% as compared to rise of 0.9% in August 2013. Consumer Durables declined by 15% in August 2014 as compared to decline of 8.3% in August 2013. Consumer Non-durables declined by 0.9% as compared to rise of 5.4% in August 2013. During April-August 2014, Capital Goods recorded growth of 4.3% as compared to rise of 0.7% in April-August 2013. Intermediate Goods production increased by 2.4% in April-August 2014 as compared to same growth of 2.4% in April-August 2013. Basic Goods sector witnessed growth of 8.6% as compared to increase of 0.3% in AprilAugust 2013. Consumer Durables declined by 15% in April-August 2014 compared to decline of 8.3% during the corresponding period in 2013. Consumer Non-durables during April-August 2014 increased by 0.9% as compared to increase of 6.8% during April-August 2013.
8
2012-13
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Industrial Sector
BKJ : 15.10
Consumer Durables : Prod. Index
(Base : 2004-05 = 100)
2014-15
ACCORDING TO THE INDUSTRYWISE IIP DATA, THE CHEMICAL INDUSTRY DECLINED BY 5.3% IN AUGUST 2014. DURING APRILAUGUST 2014 THE INDUSTRY RECORDED GROWTH OF 0.4% OVER APRIL-AUGUST 2013.
2013-14
296
On the foreign trade front, India’s exports during September 2014 valued at $28.9 bln. increased by 2.7% from its level of $28.1 bln. in September 2013. Imports during the month at $43.15 billion increased by 25.96% from its level of $334.26 bln. in September 2013. India’s total exports during AprilSeptember 2014-15 valued at $163.7 bln. increased by 200 180 160
Industrial Sector
BKJ : 15.10
Consumer Non-durables : Prod. Index (Base : 2004-05 = 100)
2014-15 2013-14
140
264 232 200
2012-13
120
2012-13
100 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
80 z CHEMICAL NEWS NOVEMBER 2014
80
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Industrial Sector BKJ : 15.10 20 Chemicals : Production 18 16 (% change over previous year) 14 2013-14 12 10 8 6 4 2 0 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar -2 2012-13 -4 2014-15 -6 -8 -10 6.47% from its level of $153.75 bln. in AprilSeptember 2013-14. Imports during the period at $234.1 billion increased by 1.57% from its level of $230.48 bln. in April-September 2013-14. Oil import bill in April-September 2014-15 was higher by 3.1% from the level of oil imports in April-September 2013-14. Non-oil imports in April-September 2014-15 were higher by 0.8% from non-oil imports in April-September 201314. The trade deficit for April-September 2014-15 was estimated at $70.4 billion, lower than the deficit of $76.7 billion during the corresponding period in 2013-14.
9
35000
2014-15
20000 15000 10000 5000 0
50000 40000
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
External Sector 2012-13
Imports
BKJ : 15.10
2013-14
2014-15
(Million Dollars)
30000 20000 10000 0
India’s foreign exchange reserves declined by $2.75 billion to $311.4 billion for the week ended 3 October 2014. The foreign currency assets declined by $1.8 billion to $285.58 billion. The value of gold reserves declined by $920 million to $20.01 billion. The value of special drawing rights (SDRs) declined by $22.8 million to $4.28 billion. India’s reserve position with the International Monetary Fund (IMF) slipped by $8.2 million to $1.54 billion.
100
11
Exports
BKJ : 15.10
2013-14
25000
400
Indian Railways carried 532.44 million tonnes of revenue earning freight traffic during April-September 2014., recording an increase of 4.20 per cent over the freight traffic of 511.00 million tonnes carried during AprilSeptember last year.
2012-13
30000 (Million Dollars)
The Department of Industrial Policy & Promotion (DIPP) has set up a special management team “Japan Plus” to facilitate and fast track investment proposals from Japan. The team will comprise representatives from Government of India and METI (Ministry of Economy, Trade and Industry), Government of Japan.
10
External Sector
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
External Sector Foreign Exchange
2012-13
BKJ : 15.10
2013-14
2014-15
350 (Billion Dollars) 300 250 200 150 50 0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
12 13
The annual rate of inflation, based on monthly WPI, stood at 2.38% (provisional) for the month of September 2014 (over September 2013) as compared to 3.74% (provisional) for the previous month and 7.05% during the corresponding month of the previous year. All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of August 2014 increased by one point and stood at 253. CHEMICAL NEWS NOVEMBER 2014 z 81
NEWS FROM MEMBERS CLARIANT INAUGURATES REGIONAL INNOVATION CENTER IN INDIA
z Clariant Regional Innovation Center (RIC) India, Mumbai, to focus z on innovation tailored to regional market needs z RIC leverages the expertise of the entire global Clariant z Innovation network z New facility will accelerate speed to market with unique product z solutions Clariant, a world leader in specialty chemicals, has inaugurated its first Regional Innovation Center in India (RIC India). Located in Navi Mumbai, the new facility will host approximately 100 technical employees in Chemical Research and Application Development in the near future. Research efforts will focus on the areas of Surfactants, Specialty Polymers and Functional Chemicals. The RIC bundles research, application development and 82 z CHEMICAL NEWS NOVEMBER 2014
analytical laboratories, business functions and technical marketing under one roof. This will foster close collaboration with the local and regional customers, suppliers and scientific partners to identify the most relevant and attractive business opportunities. “Innovation to meet the challenges and trends of regional and global markets is at the core of Clariant’s strategy. With its close proximity to local and regional customers, the RIC India will facilitate cross fertilization of ideas and accelerate Clariant’s innovation efforts toward delivering fast and tailor made solutions,” comments Christian Kohlpaintner, Member of Clariant Executive Committee”. To mark the inauguration, Clariant welcomed guests from industry, academic and research institutions to the new state-of-the art facility. Martin Vollmer, Chief Technology Officer of Clariant, gave an insight into the Technology & Innovation activities at Clariant, followed by a well-attended interactive session focusing on the Emerging Trends and Needs of the Indian Market, under the Clariant
motto – what is precious to you! “The RIC India reinforces the direction Clariant is taking as it moves into the future, providing a catalyst to unleash innovation and customized solutions for hyper growth in the region,” said Deepak Parikh, Region Head for Clariant in India. The RIC India in Mumbai will be well integrated in Clariant’s global innovation network managed by Clariant in Switzerland which will ensure getting leverage of Clariant’s four Technology Platforms Chemistry & Materials, Biotechnology, Catalysis, and Process Technology.
BASF INAUGURATES RS 1000 CR CHEMICAL COMPLEX IN DAHEJ, GUJARAT
South Asia’s first MDI (methylene diphenyl diisocyanate) splitter will help make Gujarat a hub for valueadding industries German chemicals major BASF India Limited inaugurated its large-
scale chemical production complex at Dahej in Gujarat today. With a project cost of Rs 1,000 crore (approximately Euro 150 million), the site represents BASF’s single largest investment in India. The site was jointly inaugurated by Anandiben Patel, Chief Minister of Gujarat; Saurabhbhai Patel, Minister for Finance, Energy and Petrochemicals, Government of Gujarat and Michael Heinz, Member of the Board of Executive Directors, BASF SE. The site includes an integrated hub for polyurethanemanufacturing and production facilities for care chemicals and polymer dispersions. The care chemicals facility at the Dahej site hosts the first BASF sulfation plant in India, which will cater to customers in the fast-moving consumer goods sector. The polymer dispersions plant will expand BASF’s production footprint in the dispersions business, complementing the Mangalore facility. It will serve paper and board, architectural coatings, construction, adhesives, and fibre bonding customers, located in northern and western India. The integrated polyurethane manufacturing facility will host a MDI (methylene diphenyl diisocyanate) splitter for processing crude MDI, a core component in the manufacture of versatile polyurethane products. They are used extensively for cold as well as heat insulation applications and are the preferred material for improving safety in transportation, and enhancing energy efficiency and comfort at home. Dr Raman Ramachandran, Chairman, BASF Companies in India & Head South Asia, said, “With this production hub, including the first MDI splitter in South Asia, we are well positioned to increase our long-term competitiveness significantly in this key market. We will serve our customers in the Asia Pacific region even better through stable product supply in terms of both quality and volume.”
The site will also produce Elastollan TPU (thermoplastic polyurethane), Cellasto (microcellular polyurethane components) and polyurethane systems. The integrated hub will support the demand of industries in the appliances, footwear, automotive, construction, and furniture segment. Heinz said, “As part of our investment plans of more than Euro 10 billion in Asia Pacific between 2013 and 2020, we want to strengthen our production platform in India. With our new Dahej site we are enhancing our position as supplier with local production and can even better ‘create chemistry’ with our customers. With our advanced technologies and the commitment of our team in India, we will both contribute to and benefit from India’s huge market potential.” The site currently employs 200 people directly and 300 people indirectly. In the near future, the site will offer direct employment opportunity to 50 additional people.
PLASTINDIA 2015 SHIFTS TO GANDHINAGAR, GUJARAT. Considered to be India’s leading exhibition for plastics industry, the event was scheduled to be held in New Delhi from February 5-10, 2015 Plastindia 2015, considered to be
the largest exhibition for plastic processing and allied industry in India, will be held at Mahatma Mandir Convention Centre in Gandhinagar(Gujarat) from February 5-10, 2015, instead of Pragati Maidan, New Delhi. The last few editions of Plastindia had been held in New Delhi. When 2015 edition was first announced it was scheduled to take place in Gujarat. However, in 2013, Plastindia Foundation, the organiser of the expo, shifted the venue back to New Delhi as it was facing infrastructural challenges in organising the mega event in Gujarat. Now the organiser feel that the infrastructural issues have been sorted out and, hence, the exhibition will be held in Gujarat. “The strong growth that the plastics industry has witnessed in the recent past and continues to do so today will only help in making this Plastindia, a resounding success. Gandhinagar as a destination will further catalyse this growth story,” said Plastindia Foundation in a press release. The plastics industry has been witnessing exponential growth in India. Between 2013 and 2020, plastics consumption in India is set to increase from 12 million metric tonne per annum (MMTA) to 20 MMTA; exports from $ 6 billion to $ 8 billion as well as direct and indirect
DHUNSERI PETROCHEM RESUMES PRODUCTION AT PET PLANT IN HALDIA Plant-I, which caters only to the export market, was shut down on August 14, 2014 after considering international demand and supply situation and margin pressure Dhunseri Petrochem & Tea Ltd has resumed operation at the company’s polyethylene terephthalate (PET) plant-I in Haldia, which was closed for last two months due to unfavourable international market scenario. Dhunseri Petrochem & Tea Ltd informed BSE that the production has commenced in the said plant. The bottle-gradePET resin is used to produce packaging containers for drinking water, carbonated soft drinks, edible oil and pharmaceuticals. Plant I, which caters only to the export market, was shut down on August 14, 2014 after considering international demand and supply situation and margin pressure. The sudden increase in imports of PET into India resulted in reduced PET demand from the domestic customers and consequent reduction in supplies of the company in the domestic market. CHEMICAL NEWS NOVEMBER 2014 z 83
employment from 1.2 million to 2 million. Over 150,000 visitors are expected to congregate at Plastindia 2015, which will house about 2000 exhibitors. ProPlast (an event for processed plastics), international conference and PlasticonAwards will also be held concurrently along with Plastindia 2015.
RCF PLANS TO INVEST RS. 4,500 CR. IN 1.27-MT UREA PLANT The company also planning to set up a subsidiary to focus on ventures and assets abroad where feedstock natural gas is cheap or raw materials are available in abundance Rashtriya Chemicals and Fertilisers (RCF) is planning to set up an urea plant at its Thal manufacturing site near Mumbai with an estimated investment of Rs 4,500 crore. The new plant, having capacity of about 1.27 million tonnes (mt) of urea per annum, will be covered under the recently notified new urea investment policy. “We are expected to start this Thal III project in the next financial year and it is estimated that around Rs. 4,500 crore would be invested in the project,” said Mr. R.G. Rajan, Chairman and Managing Director, RCF. In addition to new urea unit, RCF is also planning to set up a subsidiary that will specifically focus on ventures and assets abroad where feedstock natural gas is cheap or raw materials like phosphate are available in abundance.
GACL TO INVEST RS. 3,500 CR. FOR EXPANSION The company is also planning to set up a new caustic soda plant at Bhavnagar, Gujarat, and another new plant in Eastern India Gujarat Alkalies and Chemicals Limited (GACL), the Vadodara-based caustic soda manufacturer, plans to invest Rs 3500 crores in expansion and new projects for caustic soda 84 z CHEMICAL NEWS NOVEMBER 2014
HIKAL LTD – NEW “DEVELOPMENT AND LAUNCH PLANT” COMMISSIONED Hikal Ltd, a leading Custom Development and Manufacturing company from India has announced the commissioning of their new “Development and Launch Plant” located at Bangalore, India. The new plant has capabilities to handle intermediates and API’s under cGMP conditions and will support small scale requirement as well as launch quantities for innovator pharma companies. This latest development will further enhance and expand Hikal’s current capacity to provide its global customers a seamless range of services from cutting-edge R&D to large scale manufacturing. Commenting on the occasion, Mr. Sameer Hiremath, CEO of Hikal said “This new plant adds additional capabilities to the technology toolbox and capacity at Hikal and demonstrates our commitment to provide a complete range of services across the development and manufacturing value chain to our global customers. Based on the increasing requirements of our customers, our GMP capacity has been significantly enhanced starting with process development, kilo lab, launch plant and commercial plants”. and other products. “The expansion projects involve augmenting the existing capacities of caustic soda, chloromethane, and phosphoric acid besides caustic potash at its Dahej plant. The caustic soda capacity is being expanded by 1200 tonne per day (TPD), that of chloromethane by 600 TPD, phosphoric acid by 300 TPD and the caustic potash to 120 TPD,” said aGACL press release. A 120 Megawatt coal-based
power project will also come up at Dahej as part of the expansion plan. Gujarat Alkalies and Chemicals is also exploring the possibility of setting up a new caustic soda plant at Bhavnagar, Gujarat, with a capacity of 600 TPD and another new plant in Eastern India with a capacity of 300 TPD. Alternatively, GACL may also consider to acquire an existing caustic soda manufacturing plant with a similar capacity in Eastern part of the country. z
With Best Compliments From
EAST INDIA PHARMACEUTICAL WORKS LIMITED 6, Little Russell Street Kolkata - 700 071
Tel.: 2287 2262 / 2287 3004 / 2287 3007 2287 3009 / 2287 3041 / 2283 0709 Fax: 91-33-2287 3852 / 2287 4289 E-mail: eipwl@cal.vsnl.net.in Website: www.eastindiapharma.org
CHEMICAL NEWS NOVEMBER 2014 z 85
NEWS NATIONAL INDIA CHEM 2014 IN MUMBAI Minister for Chemicals and Fertilizers, Shri Ananth Kumar, inaugurated the 8th Biennial International Exhibition and Conference-India Chem 2014 on October 9, 2014 in Mumbai. The most awaited chemicals and petrochemicals mega event of the year was inaugurated in the presence of H.E. Ghomalreza Ansari, Ambassador, Iran to India, Shri Deepak C Mehta, Chairman FICCI Chemical Committee, Dr. B. R. Gaikwad, Vice Chairman, Chemexcil, Shri Nikhil Meswani, ED, Reliance Industries Ltd., Mr. Yoshihiro Umeha, Member of Board & Managing Executive Officer, Mitsubishi 86 z CHEMICAL NEWS NOVEMBER 2014
Chemical Corporation and Shri Surjit Chaudhary, Secretary, Dept. of Chemicals Petrochemicals, Govt. of India. The theme of the Event is ‘Spurting the growth of Indian Chemical & Petrochemical Chemical Industry.” The Chemical and Petrochemical industry is at the threshold of sustainable growth with the Government of India providing a framework of support and encouragement. Speaking on the occasion, Shri Ananth Kumar Minister for Chemicals and Fertilizers, GoI said “One of the most important objectives behind organizing the India Chem series is to highlight the manufacturing possibilities in
the country’s chemical industry. This event provides an excellent opportunity for the Indian chemical Industry to showcase its capabilities and strengths to the World Chemical Community.” Leading companies from all over the world particularly from China, Taiwan, Germany, Iran, Middle East, Singapore, Vietnam Italy, Switzerland, Japan, Russia, USA, and South East Asian countries are participating both as exhibitors and visitors. The event would also play host to a galaxy of eminent speakers and leaders from India and abroad. The event is a collaborative initiative by the Department of Chemicals and Petrochemicals,
Government of India, Federation of Indian Chambers of Commerce and Industry (FICCI) . Mr. Deepak Mehta, Chairman, FICCI National Chemical Committee said “Green chemistry is crucial to increase the export growth so that we can steadily increase our share in the global chemical market. Through various efforts, the industry is incorporating technologies and process that lead the country to the goal of being a leader of chemical exports.” Besides showcasing the strength of Chemical and Petrochemical industry, India Chem 2014, the event is a crucial platform for networking, exchange of ideas, creating awareness of new products & technologies, and exploration of possibilities for enhancement of trade. Highlights-India Chem 2014 z Around 300 focused Exhibitors z 10,000 sq. meters of exhibition area z Country Pavilions :- Japan and Iran z Partner Country :- Iran and Focus Country z Partner State:- Gujarat z Concurrent Exhibition on Pumps, Valves and Process Equipment z CEOs’ Forum z International conference on chemicals, petrochemicals and process technologies z Seminar on alternate feedstock for chemical industry z Round Table on Agrochemicals z PCPIRs Session z Indian Chemical Council Conclave z Reverse Buyer Seller Meet by Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (CHEMEXCIL). More than 60 overseas buyers confirmed. z Structured Buyers and sellers meets z Technical Seminars and Conferences z More than 15000 Business Visitors expected from India and Abroad
RARE HONOUR FOR PROFESSOR M. M. SHARMA IChemE (UK) TO NAME ‘CAREER ACHIEVEMENT MEDAL’ AFTER PROF. M.M. SHARMA The Institution of Chemical Engineers, UK (IChemE), specifically its Medals and Prizes Committee, has decided to name its ‘Career Achievement Medal’ after Professor M. M. Sharma, FRS, former Director, Institute of Chemical Technology (ICT), Mumbai. Alongside eight medals for specific areas of research, teaching and early careers researchers, the ‘Career Achievement Medal’ aims to recognise outstanding full-career achievements in chemical engineering research. “We would like to name the medal in recognition and honour of an individual whose contribution is beyond question and who will serve as an inspiration to those who might receive the medal in years to come,” Ms. Claudia FlavellWhile, Director of publications, IChemE, said in an email seeking Prof. Sharma’s acceptance of the decision. The ‘M.M. Sharma Medal’, launched this year, will be presented to an individual who has, across his or her career, made a significant contribution to the field of chemical engineering research. The judging committee will consider: originality and impact of research, innovation, professional standing, and other indicators of esteem indicated by the nominee/ nominator. Nominations for the medal will be judged by the Medals and Prizes Committee, chaired by the President, IChemE. While a final decision on the frequency of the award has not yet been made, it is likely that the medal will be awarded biennially. “I am overwhelmed by this gesture and, with due humility, accept this honour. I have been researching since 1958; last ten years it has been in industry where the work is not reflected in publications in learned journals, but I have the pleasure of commercialising a number of processes. My mind goes back to having received two Moulton Medals and being directly elected as a Fellow and subsequently as an Associate Editor of Transactions. I have enjoyed my association with the Institution,” Prof. Sharma said in his acceptance of this rare Honour.
GOVT. PLANS TO SPEND RS 1-LAKH CR. FOR MADHYA PRADESH PCPIR Rajasthan and Karnataka also keen to set up special investment zones for petroleum, chemicals and petrochemical industries Adding to the already approved list of four petroleum, chemicals and petrochemical investment regions (PCPIRs) is the new PCPIR in Bina, Madhya Pradesh. The government anticipates an investment of Rs 1 lakh crore to set up the new PCPIR which will be located near Bina refinery. Launched in March 2007, PCPIR policy was envisaged to promote
integrated manufacturing location for refinery, petrochemical crackers, and other downstream industries. The government till date has approved four PCPIRs – Dahej (Gujarat), Paradip (Odisha), VishakhapatnamKakinada (Andhra Pradesh) and Cuddalore-Nagapattinam (Tamil Nadu). While the construction work at Dahej and Paradip has already started, the other two PCPIRs are still to take off. In fact, the Narendra Modi-led Government recently constituted steering committees to fasten the process and monitor the progress of these PCPIRs. Speaking during the Madhya Pradesh Global Investors Summit on CHEMICAL NEWS NOVEMBER 2014 z 87
October 10, 2014, Ananth Kumar, Union Minister of Chemical and Fertilizers, said, “A new PCPIR will be set up near Bina refinery, which will be expanded to 15 million tonnes (MT) from 6 MT by BPCL.� During his visit to India Chem 2014 event in Mumbai a day before, Ananth Kumar had informed that state governments of Madhya Pradesh, Karnataka and Rajasthan have approached his ministry with a proposal for setting up special investment zones for petroleum and petrochemicals in their respective states. He said that the centre will extend necessary support to all state governments for their proposals.
SBI also said the HC order for disposal of sugar stock could potentially turn sugar mills sick as it would proceed under the coercive Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act to sell the mills' assets to recover its dues. It also said no bank would come forward to grant any advance/loan to these sugar mills in case it was held that first charge on sugar stock would be in favour of cane growers and not banks, as held by the HC. A bench headed by Chief Justice H L Dattu felt the cane growers' right to life was more important than the bank's right to carry on business,
amount if the insurance cover was below Rs 25 lakh and 50% for those with insurance cover exceeding Rs 50 lakh. In the recent past, SBI has been at the receiving end also due to scams. Close on the heels of NPAs after cancellation of 2G spectrum licences by the apex court, it suffered a jolt when the SC cancelled all coal block allocations to private companies, which had taken huge loans from SBI. The Coal Producers Association had informed the court that loans worth Rs 2.5 lakh crore advanced by banks and financial institutions would become non-performing
especially in the face of hardships faced by farmers leading to many suicides. "In view of the suicides among farmers, let us put a quietus to this," the bench observed before dismissing SBI's appeal. Similar considerations had weighed with the court in dismissing the appeals filed by four public sector insurance companies on settlement of claims filed by Jammu & Kashmir flood victims. The court had refused the insurance companies' plea to conduct preliminary survey before settling claims. The SC asked them to implement the HC order, which had directed them to pay up 95% of the claim
assets because of en masse cancellation of coal blocks. It had said that SBI might suffer the biggest jolt as it could suffer a hit of up to Rs 78,263 crore, which was almost 7.9% of its net worth for 2012-13. [Source: THE TIMES OF INDIA: 14 OCT. 2014]
RIGHT TO LIFE OVERRIDES RIGHT TO DO BUSINESS, SUPREME COURT RULES Right to life outweighed right to do business with the Supreme Court on Monday rejecting State Bank of India's petition challenging an Allahabad high court order directing sugar mills in Uttar Pradesh to sell the sugar stock hypothecated to SBI against loans to pay sugarcane farmers' dues. Sugar mills had taken loans totaling Rs 3,000 crore from SBI by hypothecating their sugar stock. Under law, the creditor bank has the first right on the hypothecated sugar to realize its dues if the mills default on repayment of loans. Acting on a PIL filed by Rashtriya Kisan Mazdoor, the HC had invoked Section 17(5) of UP Sugarcane (Regulation of Supply and Purchase) Act, 1953 and extinguished the right of secured creditors and directed collectors to grant permission to sugar mills to sell the sugar stock for payment of dues to cane growers. Appealing against the HC order through advocate Sanjay Kapur, SBI told the SC on Monday that the mills were now disposing of sugar stock, which was a security against loans. SBI apprehended that the Rs 3,000 crore loans it had advanced to mills would turn non-performing assets. 88 z CHEMICAL NEWS NOVEMBER 2014
COLOUR CODING SYSTEM TO MONITOR AIR QUALITY The National Air Quality Index is classified into six categories - good, satisfactory, moderately polluted, poor, very poor, and severe - with colour coding ranging from green to dark red In order to make it easy for the common man to judge the air quality
within his vicinity, the Ministry of Environment and Forests has launched the National Air Quality Index (AQI) by which an area will be assigned a colour code based on the air quality. Speaking on the occasion, Prakash Javadekar, Minister for Environment, Forests & Climate Change, termed the AQI as ‘one number, one colour, one description’ measure which will widely classify daily air quality and inform people in a simple manner. He added that the formulation of the index was a continuation of the initiatives under Swachh Bharat Mission envisioned by the Prime Minister Narendra Modi. The index is classified into six categories - good, satisfactory, moderately polluted, poor, very poor, and severe - with colour coding ranging from green to dark red. This index transforms various air pollution levels into a single number for a simple description of air quality to citizens. The AQI is aimed at quickly disseminating air quality information real-time that entails the system to account forpollutants which have short-term impacts. The AQI will prompt the local authorities to take quick action to improve air quality and is aimed at people's participation in the process. Citizens can avoid unnecessary exposure to air pollutants, said Javadekar. The proposed AQI will map eight pollutants (PM10, PM2.5, NO2, SO2, CO, O3, NH3 and Pb) for which short term (up to 24-hourly averaging period) National Ambient Air Quality Standards are prescribed. This index was developed by an expert group comprising medical professionals, air quality experts, academia, NGOs, and state pollution control boards. The Centre for Science and Environment (CSE) welcomed this move and said this can help people take precautions on days with poor air quality. “CSE has
been demanding adoption of this programme as this can help people understand the quality of air and the possible health effects. This is needed to demystify complex air quality data, help promote public awareness and build public pressure for effective air pollution control in cities,” said Anumita Roychowdhury, CSE's Executive Director - Research and Advocacy and Head of its air pollution team.
CHEMICALS MINISTRY TAKES FORWARD IDEA OF ‘REVERSE SEZs’ ABROAD The Ministry of Chemicals and Fertilizers has mooted the idea of setting up ‘Reverse SEZs’ (Special Economic Zones) outside India to leverage feedstock for Indian industries at cheaper rates. In its meeting with Department of Fertilizers, Department of Economic Affairs, ONGC and other relevant industries, the ministry noted the
lack of adequate feedstock for the chemical industry in India and the non-availability of natural gas for the petrochemicals sector. It is now viewing the discovery of large-scale deposits of natural gas in USA and of coal-based chemicals in China as an opportunity for India to collaborate with them (and other countries) to set up Indian SEZs in these countries, possibly by a consortium of Indian companies. These SEZs would export the feedstock to India. Following the meeting, the possibility of adding chemical manufacturing facilities in the existing Oman Fertilizers plant by IFFCCO/KRIBHCO is to be explored, in association with the Department of Fertilizers and the Ministry of External Affairs (MEA). Rashtriya Chemicals and Fertilizers (RCF) is already evaluating the possibility of a joint venture in Iran near the Chabahar port, along with setting up a chemicals/ petrochemicals unit.
EIL BAGS CONTRACT FROM ASSAM PETROCHEMICALS FOR ACETIC ACID PROJECT Engineers India Ltd. (EIL) has secured a consultancy contract under stiff competition from Assam Petrochemicals Ltd. (APL) for their proposed 500-tpd (tonnes per day) methanol plant and 200-tpd acetic acid plant at Namrup, Assam. EIL’s scope under the contract involves license, engineering, procurement and construction management (LEPCM) services with a completion schedule of 36 months. APL will invest about Rs. 1,028-crore in the integrated methanol/acetic acid project. The acetic acid technology and basic technology package will be provided by Bejing Zehua Chemicals Engineering Co. Ltd. (China), which will also supply proprietary items, besides services related to erection, supervision and commissioning of the acetic acid plant. CHEMICAL NEWS NOVEMBER 2014 z 89
NEWS INTERNATIONAL
NEPIC PUBLICATION IS BEST ACROSS ALL EU INDUSTRY FOR INTERNATIONAL PROMOTION AND SME ENGAGEMENT. NEPIC is one of only 40 Gold Labeled European Clusters, out of 600 across all industry sectors, as is accredited by the European Secretariat for Cluster Analysis (ESCA). Last week a report of ESCA audit findings on all these organisations cites the NEPIC Annual Directory as “Best in Class” for marketing. Particularly to inward investors and also for promoting the businesses of local SME’s. The citation says NEPIC’s DIRECTORY is “A tool to promote inward investment and generate supply chain connections. Potential investors use it to evaluate the potential of the region and aid investment decisions. It serves as an important purpose beyond industry educating non-related businesses, regional and national government, trade bodies, academic institutions, school leavers and the public on the importance of the sector to the NE & UK economy.” 90 z CHEMICAL NEWS NOVEMBER 2014
The NEPIC Directory is created and published in NE England by NEPIC annually and is distributed to 500,000 contacts around the world. It contains up to date reviews of sub sectors of the industry like petrochemicals, pharmaceutical, polymer, biotechnology and renewables it presents the investment options in NE England while at the same time describing individually the businesses of each and every one of its 720 participating companies. Dr Stan Higgins said “We were very proud to be represented in Brussels when this Cluster report was launched. Virtually all European Clusters are publically funded organisations and we do the best we can with contributions from our members. To see our Directory being held up as best across the whole of Europe is an amazing accolade for the NEPIC Team and the contributions from all our local businesses.” Paul Booth Chair of NEPIC said “Every year NEPICs team improve this publication and when my 2014-
15 copy arrived on my desk my first thought was that it is an outstanding publication. NEPIC’s Directory really sells our industry to all its stakeholders but most importantly it does its job of bringing new business to NEPIC members and new investment to our region.” THE FULL ESCA CITATION READS: Cluster marketing: member directory as global marketing tool (NEPIC UK) The North East of England Process Industry Cluster (NEPIC) is a membership cluster organisation working with the chemistry using industries in the North East of England. The cluster is aims to develop a competitive chemical processing industry by building on the strong industrial base of the region. Privately owned and led by industry, NEPIC represents the sector across the broad chemistry using industries, which include commodity chemicals, fine and speciality chemicals, polymers and composites, pharmaceuticals, biotechnology, bioresources, biofuels
and renewable energy and low carbon materials. In order to promote the region in Europe and overseas NEPIC publishes an annual directory of cluster companies. The directory is distributed all over the globe potentially to about 450,000 recipients. It is a comprehensive source of products and services of 350 companies in the North - East England process industry. The cluster management uses the directory as a principle tool to promote inward investment and generate supply chain connections for companies. Potential investors use it to evaluate the potential of the region and aid investment decisions. For cluster companies it serves as a guidebook to source products and services from fellow cluster members. But it serves also an important purpose beyond the industry by educating non - related businesses, regional and national Government, trade bodies, academic institutions, school leavers and general public use the directory on the importance of the process industries to the North East and UK economy. Over the years many members have reported securing business through enquires that originated from the Directory and NEPIC has been able to secure business for companies at major international trade exhibitions and make supply chain connections for inward investors.
CHINA HITS BACK AT INDIA WITH ‘MADE IN CHINA’ CAMPAIGN China will use tax breaks to encourage firms to upgrade their equipment and increase R&D efforts Coinciding with Prime Minister Narendra Modi’s ‘Make in India’ pitch and seeking to retain its own manufacturing prowess, the Chinese government launched a ‘Made in China’ campaign, with a host of tax concessions.
China would encourage high-tech imports, research and development (R&D) to upgrade ‘Made in China’, a decision by the Chinese government said. Under the new campaign, China will use tax breaks to encourage enterprises to upgrade their equipment and increase R&D efforts to improve the manufacturing industry. Companies that bought new R&D equipment and facilities after January 1 or possess minor fixed assets will have taxes reduced on the basis of value, the Cabinet, presided over by Premier Li Keqiang, has decided. Imported high-tech equipment will also enjoy tax deductions in aviation, bio-medicine production, manufacturing of railway and ships, electronics production, including computer and telecommunications, instrument production and those used in making IT products and software, state-run Xinhua news agency reported on Thursday. The announcement came on a day when the Indian Embassy here, Consulates in Guangzhou, Shanghai and Hong Kong held special investment promotion events to showcase the ‘Make in India’ campaign. ALSO READ: MODI’S ‘MAKE IN INDIA’ CAMPAIGN: TOP 10 QUOTES China’s new move aims to prompt technical improvement of
companies, especially innovation of small and medium-sized enterprises, which in the past three decades propelled it to become the world’s second-largest economy and made it a powerhouse of the manufacturing industry. The Cabinet asked government organs to implement the new measures as soon as possible to arm ‘Made in China’ with advanced technology and equipment, encouraging more competitive products with high added value, the report said. China’s manufacturing sector, a key driver of its economic growth, is regarded highly competitive in the global market. Analysts believe the measures will not only start a new round of innovation but also spur fixed asset investment, and in the bigger picture contribute to stabilising economic growth.
CHEMICAL REGULATION POLICY UPDATE LIKELY TO REMAIN IN LIMBO Efforts to broker a deal on national chemical regulation policy appear to have fallen apart in the waning days of the 113th Congress, leaving plastics producers and other chemical makers in limbo for yet another year — at least. Sen. David Vitter (R-La.) the top Republican on the Senate Environment and Public Works
CB&I BAGS POLYPROPYLENE FACILITY CONTRACT IN CHINA CB&I has been awarded a contract by Shenhua Ningxia Coal Industry Group Co Ltd for the license and engineering design of a polypropylene unit to be built in Lingwu, Yinchuan City, Ningxia, People’s Republic of China. The unit will use CB&I’s Novolen technology to produce 600,000 metric tonne per annum of polypropylene. There are already two units utilizing Novolen technology on site – each with cascade and parallel production lines. At the completion of this third unit, the capacity on site will be increased to 1.6 million metric tonne and the plant will be able to produce the full range of polypropylene grades. “Once the third polypropylene unit at Shenhua Ningxia’s site is running, it will be the largest polypropylene site in China. This site will also have the largest capacity of any of the Novolen technology licensees,” said Daniel McCarthy, President, Technology Operating Group, CB&I. CHEMICAL NEWS NOVEMBER 2014 z 91
Committee had been negotiating with Sen. Tom Udall, (D-N.M.), and the two were close to unveiling a bill to update the 1970s-era Toxic Substances Control Act (TSCA), according to Senate staffers. But that compromise measure was dropped after continued objections from Sen. Barbara Boxer (D-Calif.), who chairs the Environment and Public Works Committee and who released her own version of the Vitter-Udall bill, complete with extensive revisions. The Chemical Safety Improvement Act (CSIA) was proposed last May by Vitter and the late Sen. Frank Lautenberg, (D-N.J.), as a compromise bill after more than a decade of disagreements on revamping TSCA. The measure, which has seen its share of revisions since its introduction, would require safety testing of all chemicals on the market as well as new chemicals and would grant the EPA authority to phase out or ban chemicals deemed harmful, from flame retardants to building materials to bisphenol A. While the bill has drawn cosponsors from both sides of the aisle and extensive hearings have been held in both the House and Senate, the objections of Boxer and other staunch opponents have remained the same. “Real TSCA reform will protect our most vulnerable populations like pregnant women, infants and children. National standards must incorporate these basic
principles while allowing states to strengthen safeguards for their citizens. State laws often lead to benefits nationwide as consumers and industry react to standards and information generated at the state level,” said Boxer in a news release accompanying her TSCA reform counterproposal. “The test for whether a TSCA reform bill is ready to move forward is when you can say the bill is stronger than current law when it comes to protecting our families from dangerous chemicals. The Vitter TSCA proposal still falls short of the changes needed to improve on current law.” Boxer has also argued that the Vitter draft would make it too easy for the EPA to exempt chemicals from regulation and prevent states from taking action to protect their
CLARIANT TO BUILD PERSONAL, HOME CARE PRODUCTION FACILITY IN INDONESIA Clariant, a world leader in specialty chemicals, will build a new production facility at its Tangerang site in Indonesia to support regional demands in the personal and home care industry. Start-up for the new facility is expected in 2015. “Supporting the sustainability of our customers is a key priority for Clariant. The installation of this new production facility at Tangerang will enhance Clariant’s ability to share its latest innovations with Asia’s personal care and home care markets, based on a highly-competitive platform through close proximity to raw materials and customers in South-EastAsia,” said Guido Appl, Head of Sales & Application APAC – Personal Care/ Industrial & Home Care, Clariant. 92 z CHEMICAL NEWS NOVEMBER 2014
citizens as they see fit, preempting existing chemical regulation laws like California’s Proposition 65. Boxer’s home state of California is well known to plastics processors for its harsh treatment of plastics products from BPA to vinyl via Prop 65. Prop 65, approved by more than 60 percent of voters there in 1986, requires businesses to notify citizens when chemicals are present in products, workplaces, public spaces or released into the environment that have at least a 1 in 100,000 chance of causing cancer or birth defects. Will Coggin, senior research analyst at the Center for Consumer Freedom, argues that Boxer’s approach, as well as the failure from both parties to update TSCA, is dangerous. “Not only is the Toxic Substances Control Act woefully outdated, but the failure of Congress to take action to update our national chemical policy has led to a proliferation of competing state laws. California’s Proposition 65 has made millions for the trial lawyers who fund Sen. Barbara Boxer’s campaigns, but it has left the entire country subject to the whims of a single state’s regulators. Any future attempts to reform the TSCA should include a preemption clause that finally liberates the rest of the country from the shackles of Prop 65.” z
Government of India Ministry of Chemicals & Fertilizers Department of Chemicals & Petrochemicals
CHEMICAL WEAPONS CONVENTION (CWC) ATTENTION ALL CHEMICAL / PHARMACEUTICAL / PETROCHEMICAL / DYESTUFFS / PIGMENTS MANUFACTURERS / EXPORTERS / IMPORTERS (ENFORCEMENT OF CWC ACT- 2000)
SUBMIT DECLARATIONS NOW
India being signatory to CWC, submission of Declaration is obligatory under the CWC Act – 2000. Non-compliance is a criminal offence & attracts imprisonment / penalties. SCHEDULE- 2 CHEMICALS Initial and Annual Declarations are required for all plant sites that comprise one or more plant(s) which produced, processed or consumed during any of the previous three calendar years or is anticipated to produce, process or consume in the next calendar year more than:
(a) 1 Kg. of a Chemical designated “ * ” in Schedule–2, Part-A; (b) 100 Kg. of any other chemical listed in Schedule-2, Part-A; OR (c) 1 Tonne of a chemical listed in Schedule-2, Part-B of Annex on Chemicals of CWC.
SCHEDULE- 3 CHEMICALS Initial and Annual Declarations are required for all plant sites that comprise one or more plants which produced during the previous calendar year or are anticipated to produce in the next calendar year more than 30 Tonnes of a Schedule-3 Chemical of Annex on Chemicals of CWC. Declarations are also required on the quantities for each Schedule-2 and Schedule-3 chemical(s) imported and exported for the previous Calendar Year for each country involved.
Declaration Time Limit for Schedules – 2, 3 & Other Chemical Production Facilities (OCPFs) DECLARATION Annual Declaration of Past Activities (ADPA) for Schedule 2,3 & OCPF
25th January every year
Annual Declaration of Anticipated Activities (ADAA) for Schedule 2 & 3 only
25th July every year
Additionally planned activities
DEADLINE
Any planned change minus 30 Days i.e. 30 days before commencement of activities
FOR OTHER CHEMICAL PRODUCTION FACILITIES (OCPFs) Initial and Annual Declaration is required for all plant sites that produced by synthesis during previous calendar year more than 200 tonnes of unscheduled Discrete Organic Chemicals (DOCs) or 30 tonnes of an unscheduled DOC containing – PSF (elements Phosphorus, Sulphur or Fluorine) Chemical. File CWC Declarations online. Access the web address http://cwc.dcpc.nic.in for the purpose.
FOR FURTHER DETAILS UNDERMENTIONED WEBSITES MAY BE VISITED
www.opcw.org
www.chemicals.nic.in
www.nacwc.nic.in
For any clarification, please contact CWC HelpDesk of your region set up by Department of Chemicals & Petrochemicals, Govt. of India: ■ Chennai HelpDesk: ■ Hyderabad HelpDesk: ■ Kolkata HelpDesk: ■ Mumbai HelpDesk: ■ New Delhi HelpDesk: ■ Vadodara HelpDesk:
MR. R. NARAYANAN, Mobile: 09788580405 Email: narayanan.icc@gmail.com MR. V. GIREESAN MENON, Mobile: 08790975660 Email: icc.cwc@iccmail.in MR. ABHIJIT CHAKRABORTY, Mobile: 09831325654 Email: iccero@iccmail.in MR. SUDHIR KULKARNI, Mobile: 09930301927 Email: kulkarni.icc.mumbai@gmail.com MR. K.S. VARMA, Mobile: 09811007209 Email: cwchdd@gmail.com MR. ANAND KANE, Mobile: 09376980207 Email: cwchelpdesk@iccmail.in
Intimation Slip and Hard Copy of Declaration is to be sent (by SPEED POST ONLY) to: MR. O. P. SHARMA, Joint Industrial Advisor Ministry of Chemicals & Fertilizers, Dept.of Chemicals & Petrochemicals, Govt.of India Room No. 223, A-Wing, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi - 110001 Tel: 011-23071442 Tele-Fax: 011-23071187 Email: efilehelp.dcpc@nic.in A Hard Copy of the Declaration also be submitted to: MRS. LATA MOHAN, Joint Director National Authority, Chemical Weapons Convention Cabinet Secretariat, 1st Floor,Chanakya Bhavan, New Delhi - 110021 Tel: 011-24675527 Fax: 011-24675767 Cell: 09560454945 Email: lata.mohan@nic.in
CHEMICAL NEWS NOVEMBER 2014 z 93
QUOTABLE & LAUGHABLE
HOMAGE TO DR. VIKRAM SARABHAI, FATHER OF INDIA’S SPACE PROGRAM, ON HIS 95TH BIRTH YEAR AND A SUCCESSFUL MANGALAYAN MISSION.
”Dr. Vikram Sarabhai was a dynamic visionary, had a versatile personality and a creator of creative leaders.” Dr. A.P.J. Abdul Kalam, Former President of India.
“ I congratulate all ISRO Scientists. Today, Mangle met MOM and MOM never disappoints. We have dared to reach out into the unknown and achieved nearly impossible. History is created today!” Narendra Modi, Prime Minister on successful Mangalayan Mission. 94 z CHEMICAL NEWS NOVEMBER OCTOBER 2014 2014
Published by Mr. R. R. Gokhale at Mumbai on behalf of the owners Indian Chemical Council (ICC), Sir Vithaldas Chambers, 16 Mumbai Samachar Marg, Mumbai-400 001 and printed by him at Sevak Printers, 308 Shri Hanuman Indl. Est., G. D. Ambekar Road, Wadala, Mumbai-400 031, Tel.: 24114890, Telefax: 24116484, E-mail: sevak308@gmail.com Editor: Dr. Prakash Trivedi CHEMICAL NEWS NOVEMBER 2014 z 95
R.N.I. REGN. NO. MAHENG/2004/13760 POSTAL REGN. NO. MH/MR/SOUTH-23/2012-14 PubLIShEd ON 28/29 dAy Of EvERy PREvIOuS mONTh. POSTEd AT PATRIKA ChANNEL SORTING OffICE, mumbAI GPO, mumbAI-400001 ON 28/29 dAy Of EvERy PREvIOuS mONTh.
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