Chemical World - January 2011 by Infomedia18

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INDUSTRY WATCH - Chemical World

January 2011

EDITORIAL

Of triumph and growth

t the outset, here is wishing you a Great New Year! As we step into 2011 with added optimism rallying around the robustness of Indian economy, it will not be complete without a quick recap of the last year. Amid this phase of recovery, there were select trendsetters in the industry who not only believed in the saying ‘Do not waste a crisis’, but were also able to successfully ride this storm as a window of opportunity. Not withstanding its share of challenges, the year 2010 was an inflection point for the Indian chemical and process industry and the economy, in general. A case in point is the global focus on India as a key growth market and a marked shift in the approach – not as a mere supplier but as a strategic partner. In other words, it signifies the country’s leverage not only on better cost proposition, but also lean and efficient business model as well as faster time-to-market capability. A careful consideration of the growing maturity of the domestic market, expanding ecosystem of start-ups, and rising demand from the core sectors, points towards the beginning of a new decade in which India can potentially become the fastest-growing economy on earth. This in turn promises to present unparalleled opportunities to transform the lives of

Business Insights Technologies Opportunities

Editor : Manas R Bastia Assistant Editor: Rakesh Rao Senior Features Writer: Prasenjit Chakraborty Features Writers: KTP Radhika Jinoy (Delhi), Mahua Roy Senior Correspondent: Shivani Mody (Bengaluru) Correspondent: Geetha Jayaraman (Delhi), Anwesh Koley (Delhi) Copy Desk: Meghanadan Sudhakaran Products Desk: Sudheer Vathiyath Assistant Art Director: Varuna Naik Chief Photographer: Mexy Xavier Design: Mahendra Varpe Production: Vikas Bobhate, Pravin Koyande, Dnyaneshwar Goythale, Ravikumar Potdar, Ravi Salian, Sanjay Shelar, Lovey Fernandes, Pukha Dhawan, Varsha Nawathe, Akshata Rane, Abhay Borkar Marketing & Branding: Jagruti Shah, Ganesh Mahale CEO-Publishing: Sandeep Khosla Associate Vice President: Sudhanva Jategaonkar Subscription: Sunder Thiyagarajan, General Manager - Copy Sales Sheetal Kotawadekar, Senior Manager, Tel: 91-22-3003 4631/4633 Email: customercare@infomedia18.in

millions, and thereby attain the much sought-after inclusive growth. At the same time, there is an urgent need to ramp up infrastructure, especially power & land; access to capital & technology; manpower skills as well as provide conducive policy environment for the Indian industry. This year can mark the beginning of a phase, wherein opportunities would be new and would call for greater focus on innovation & novel models of growth. Hopefully, the surging economy, coupled with timely policy implementation, will go a long way in transforming global as well as Indian scenario. Believe, you will find enough value while referring to this special edition with an eclectic mix of the past, present and future of the chemical and process industry, as much as we valued in putting it together. Some of the content highlights include green aspect of EPC projects and industrial gases, among others. Of course, your opinions and feedback will only enhance our endeavour.

Editorial Advisory Board Pothen Paul Executive Chairman, Aker Powergas Pvt Ltd D P Misra Director, TCE Consulting Engineers Ltd and Former Director General, ICC P D Samudra Executive Director (Sales) & Member of the Board, Uhde India Ltd

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Printed by Mohan Gajria and published by Lakshmi Narasimhan on behalf of Infomedia 18 Limited and printed at Infomedia 18 Ltd, Plot no.3, Sector 7, off Sion-Panvel Road, Nerul, Navi Mumbai 400 706, and published at Infomedia 18 Ltd, ‘A’ Wing, Ruby House, J.K.Sawant Marg, Dadar (W), Mumbai - 400 028. Chemical World is registered with the Registrar of Newspapers of India under No. 14798/2005. Views and opinions expressed in this publication are not necessarily those of Infomedia 18 Limited. Infomedia 18 Limited reserves the right to use the information published herein in any manner whatsoever. While every effort has been made to ensure accuracy of the information published in this edition, neither Infomedia 18 Ltd nor any of its employees accept any responsibility for any errors or omission. Further, Infomedia 18 Ltd does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition. No part of this publication may be reproduced in any form without the written permission of the publisher. All rights reserved. Editor: Manas R Bastia

January 2011 | Chemical World

CONTENTS

MARKET INSIGHT

HIGHLIGHTS OF 2010

TREND ANALYSIS Indian chemical industry: Opening up new vistas of opportunities

LEADERS SPEAK “To be successful, Indian companies must master the art of innovation” ...says Dr Kishore M Shah, President, Indian Speciality Chemical Manufacturers’ Association

FACILITY VISIT LANXESS India’s Jhagadia site: Raising the benchmark in processing

SECTOR WATCH 42

‘GreEn’gineering: The eco-friendly path of progress

PRACTICAL TIPS EPC contracting: Reducing risk, maximising benefit K R Madan Mohan, Senior GM and Head of Legal & Insurance, Uhde India Pvt Ltd

INDUSTRY UPDATE Addressing cost and productivity: Industrial gases hold the key

MARKET SCOPE 56

Compressed gases: What ails the industry?

ENERGY MANAGEMENT Wireless trap monitoring system: Quintessential for energy conservation Sumit Hakhoo, Marketing Manager & Vinod Joshi, Product Manager - Development, Forbes Marshall

CORROSION CONTROL

Corrosion protection: High-performance coatings to prevail Prof A S Khanna, Corrosion Science & Engineering Deptt, IIT-Bombay

MANAGEMENT MANTRA Maintaining high service standard: A way to customer satisfaction Suresh Lulla, Managing Director, Qimpro

PREVIEW HiTech Material Handling: Advancing towards seamless material handling

REPORT Engineering Expo Ahmedabad 2010: Taking the triumph forward

R EG U L A R S EC TI O N S

Editorial ...................................................... 9 National News ......................................... 29 World News............................................. 34 Events Calendar ....................................... 70 Product Update........................................ 76 Product Inquiry ........................................ 87 Advertisement Inquiry.............................. 89 Product Index........................................... 91 Advertisers’ List ....................................... 92

Highlights of Next Issue Sector Watch

: Energy Management

Industry Update : Flavour & Fragrance Note: ` stands for Indian rupee, $ stands for US dollar and £ stands for UK pound, unless mentioned otherwise

Chemical World | January 2011

Details on page no. 27, 28, 65, 66

MARKET INSIGHT

The year that was… The year 2010 was a better-than-expected one for the chemical industry. Government stimulus programmes around the world, coupled with the increase in demand for chemicals, helped manufacturers post better results during the period. ‘Highlights of 2010’ section gives a snapshot of the year gone by, which witnessed a number of mergers, acquisitions, tie-ups, restructuring, expansion, etc. ‘Trend Analysis’ tracks the performance of some of the leading players and major developments in the Indian chemical industry during the year.

January 2011 | Chemical World

HIGHLIGHTS OF 2010 National

ACQUISITION BASF India finalises acquisition of Ciba India

RIL acquires Bombay Dyeing’s polyester unit

(March) Following final approvals by local authorities, BASF completed the legal process of acquiring Ciba companies in India. Prasad Chandran, Chairman, BASF Companies in India & Head South Asia, said, “We embarked on this integration journey more than a year ago. It took us on a mutual route of discovery, learning, sharing and understanding each other’s culture & business operations. We are convinced that the acquisition of Ciba is already helping our customers to be more successful, based on an innovative and comprehensive product portfolio.”

(July) Reliance Industries Ltd (RIL) bought the polyester plant of Bombay Dyeing at about ` 300 crore. The Wadias of Bombay Dyeing are said to have taken this step in order to focus on their real estate business. For RIL, the move will help it straddle the sector and is expected to boost its capacity above 9 lakh tonne per annum. Analysts tracking Bombay Dyeing are of the view that much of the company’s losses started with it choosing dimethyl terephthalate (DMT) to make polyester, which is a more expensive route. Reliance prefers purified terephthalic acid.

Kiri Dyes completes DyStar acquisition

Dorf Ketal buys Vertec business of Johnson Matthey

(March) The Ahmedabad-based Kiri Dyes and Chemicals Ltd (KDCL), through its special purpose vehicle (SPV) Kiri Holding Singapore Pvt Ltd, acquired the Germany-based multinational DyStar. The company is highly backward-integrated having product range of dyes, dyes intermediates and basic chemicals. DyStar is the global market leader for dyes, dyes solutions, leather solutions, performance chemicals, new technologies and custom manufacturing of special dyes/pigments. It has around 21 per cent marketshare globally with sales of Euro 800 million and 18 production facilities in 12 countries.

(August) Dorf Ketal Chemicals India Pvt Ltd acquired Johnson Matthey’s Vertec Specialty Catalysts business through its subsidiary Dorf Ketal Chemicals AG. The deal size is estimated to be about ` 200 crore. Subodh Menon, Founder Director, Dorf Ketal, commented, “This acquisition is another in a series that continues our commitment to rapid growth, and builds upon our expertise in organic based specialty chemical applications.”

ENVIRONMENT Suzlon receives 21 MW order from GACL (January) Suzlon Energy Ltd (SEL), one of the leading wind turbine manufacturers, won a repeat order from Gujarat Alkalies and Chemicals Ltd (GACL) to set up, operate and maintain a 21 MW wind energy project at Maliya Miyana in Rajkot, Gujarat. The project will include 14 units of Suzlon’s S82 - 1.5 MW wind turbines. The project, GACL’s third with Suzlon, will capitalise on the subsequent high wind season. The power generated from this project will be wheeled for GACL’s captive consumption. The project will increase the total wind power capacity of GACL to 83.75 MW.

UOP and IOCL to collaborate on biofuel projects (March) UOP LLC, a Honeywell company, signed a memorandum of understanding with Indian Oil Corp Ltd (IOCL) to collaborate on R&D for a range of biofuels technologies & projects in India. They will evaluate installation of a demonstration-scale unit to produce green transportation fuels at an existing IOCL site using non-food feedstocks available within India. IOCL and UOP will also evaluate the viability of pyrolysis oil technology to convert lignocellulosic materials, or plant biomass, into renewable power and heat.

Gujarat Alkalies sells second lot of CERs

NLC Nalco opens new corporate office in India

(March) Gujarat Alkalies & Chemicals Ltd sold second lot of 83,000 Carbon Emission Reduction (CERs) to a European buyer, and earned revenue of ` 5.9 crore in addition to ` 16.5 crore earned earlier by the sale of CERs. The company expects cumulative revenue of about ` 100 crore from various projects in hand in the next couple of years. GACL has a dedicated CDM team which has been entrusted with the job of identifying new CDM projects and implementation of the same.

(August) NLC Nalco, one of the leading solution providers for water and air pollution control, inaugurated a $ 8.5 million, 60,000-sq ft R&D facility in Pune. “The investments in India are beginning to pay off, as we have seen strong sales growth and increased marketshare throughout the country,” said Erik Fyrwald, Chairman and CEO, NLC Nalco. The Pune laboratory will employ more than 100 engineers and chemists, three quarters of whom will have advanced degrees. The Pune center will be under the leadership of Dr Hari Reddy, Director - R&D.

Chemical World | January 2011

HIGHLIGHTS OF 2010 National

JOINT VENTURES IOCL forms JV to produce SBR

WD-40 partners with Atul India

(April) Indian Oil Corporation Ltd (IOCL) entered into a JV with TSRC Corporation, Taiwan, and Marubeni Corporation, Japan, to set up a styrene butadiene rubber (SBR) unit at Panipat. With a capacity of 1,20,000 tonne per annum, the SBR unit will utilise butadiene feed made available from IOCL’s Panipat naphtha cracker complex to produce high-quality synthetic rubber used in the manufacturing of automotive tyres, conveyors, fan belts, etc. The project is targeted to be completed by September 2012 at an estimated cost of ` 900 crore.

(September) One of the world’s leading maintenance aerosol brands WD-40 announced its exclusive alliance with Atul Ltd for sales and distribution in India. WD-40 claims to be a leader in India with around 50 per cent marketshare. The product has a list of more than 2,000 applications. Rajesh Bhasin, President – Polymer Division, Atul Ltd, said, “WD-40 is the undisputed market leader in the aerosol maintenance category in India, and we plan to consolidate this position in the immediate future by utilising our sales infrastructure.”

RIL-GAIL pact for co-operation in petrochemicals

ATE Group partners with HUBER for water treatment solutions

(April) Reliance Industries Ltd (RIL) and GAIL (India) Ltd signed a memorandum of understanding (MoU) for joint co-operation in petrochemicals. Under the MoU, GAIL and RIL will explore opportunities for setting up petrochemical complexes outside India in feedstock-rich countries. A Working Group, consisting of representatives from both the companies, will examine identified opportunities. GAIL and RIL will set up a specialpurpose vehicle (SPV) for setting up petrochemical complexes abroad. The MoU holds significant importance in the area of petrochemicals between GAIL and RIL.

(October) Expanding its presence in the water and waste water business in India, the Mumbai-headquartered ATE Group entered into a strategic partnership with the HUBER SE for marketing, sales and service of HUBER products. Georg Huber, CEO, HUBER, said that he saw ATE as the right partner. Anuj Bhagwati, Managing Director, ATE Enterprises, said, “This association will not only provide an excellent opportunity for the companies, but also for India in the area of water conservation.

NEW FACILITY IOLCP starts new power cogeneration plant (February) IOL Chemicals and Pharmaceuticals Ltd (IOLCP), one of the largest producers of APIs, ibuprofen and specialty chemicals in India, commissioned a new power cogeneration plant having a capacity of 13 MW. It already has a cogeneration plant of 4 MW. Thus, a total of 17 MW of power will be available for exclusive consumption for the company’s expanded manufacturing facilities, which include plants for isobutyl benzene, mono chloro acetic acid and acetyl chloride.

LANXESS sets up ion exchange resins plant in Gujarat (November) Specialty chemicals group LANXESS inaugurated its new plant for ion exchange resins in Jhagadia, Gujarat. With an annual capacity of 35,000 metric tonne, this unit will manufacture products for industrial water treatment for the semi-conductor, pharmaceutical, food and the power industry. Overall, LANXESS has invested around Euro 50 million in the site. The new plant is constructed on an area totaling 30,000 sq m.

NRL initiates ` 700 crore wax project

Lubrizol opens application centre in Mumbai

(July) Numaligarh Refinery Ltd (NRL) recently initiated a ` 700 crore project for the production of paraffin wax and microcrystalline wax to bridge the domestic shortfall. The refinery will produce 43.3 thousand metric tonne (TMT) of paraffin wax and 4.5 TMT of semi-microcrystalline wax. The project is expected to be implemented over the next three years. Pharmaceuticals, cosmetics, petroleum jelly and the leather industry will be the downstream end-user industries for wax produced by NRL.

(November) The Lubrizol Corporation inaugurated its regional applications and business centre in Mumbai to support its Advanced Materials business segment. The centre - which was inaugurated by Eric Schnur, President, Lubrizol Advanced Materials - will include development, formulation and applications testing in multiple personalcare, coatings and pharmaceuticals. The site will also support Lubrizol’s business in engineered polymers, which is well-known in India for its FlowGuard® brand and Estane® thermoplastic polyurethane.

Chemical World | January 2011

HIGHLIGHTS OF 2010 National

SPECIALTY CHEMICALS Dorf Ketal acquires specialty catalyst business of DuPont

LANXESS starts rubber chemicals plant at Jhagadia site

(January) Dorf Ketal Chemicals (India) Pvt Ltd acquired the specialty catalysts business of DuPont Chemicals and Fluoroproducts – one of the leading manufacturers of organometallic titanates. This acquisition includes Tyzor® titanates & zirconates and Avitex® hydrocarbon surfactants & antistatic agents used in a broad range of specialty applications. With this acquisition, Dorf Ketal has become one of the leading global players in these product areas.

(March) Specialty chemicals company LANXESS completed the first phase of construction of its new site in Jhagadia, Gujarat. The plant features the latest technology and was constructed over a period of less than two years. “The Jhagadia site will become LANXESS’ largest production site in India. With the plant, LANXESS stands out as the only Western company to be manufacturing rubber chemicals in India,” said Luis López-Remón, Head - Rubber Chemicals Business Unit, LANXESS.

Dow Formulated Systems expands Kalwa plant

RIL inks pact with Russian firm for butyl rubber

(February) Dow Formulated Systems, a business unit of Dow Chemical International Pvt Ltd (Dow India), inaugurated its expanded polyurethane systems house and formulated polyol facility in Thane. “Located in Navi Mumbai, the facility builds on Dow India’s logistics capabilities by servicing one of the country’s most important industrial and economical hubs. It also enhances Dow India’s ability to provide cost-effective yet technologically-advanced customised solutions to Indian consumers,” informed Harish Badami, President & Managing Director, Dow India.

(May) Reliance Industries Ltd (RIL) and SIBUR, Russiabased petrochemical company, will produce synthetic rubber at RIL’s Jamnagar site in Gujarat. While SIBUR will provide the proprietary technology for butyl rubber polymerisation & its finishing, RIL will supply monomers & provide the JV with infrastructure and utilities. “Indian rubber industry is growing rapidly on the back of automobile demand in India and the sub-continent. This step reinforces RIL’s commitment to the synthetic rubber industry in India,” RIL officials stated

MISCELLANEOUS Aegis Logistics acquires Shell Gas (LPG) India

GEA Group inaugurates manufacturing unit in Pune

(March) Oil & gas logistics provider Aegis Logistics acquired Shell Gas (LPG) India, pursuant to which the latter has become the subsidiary of the company. Shell Gas (LPG) India Pvt Ltd has a gas infrastructure facility at Pipavav Port and an LPG filling plant in Gujarat. The company also carries out business of import and marketing of wholesale LPG. Aegis Logistics provides supply chain management services to the Indian petroleum & chemical industry by storing, moving and distributing petroleum & chemical products to the end-user.

(November) GEA Group, one of the largest product and system providers for food and energy processes in the world, inaugurated its manufacturing facility at Chakan near Pune. It has been set up with an investment of over ` 100 crore and a built up area of 6,500 sq m. It will be involved in the manufacturing of Plate Heat Exchangers (PHE) of all types and will cater to Asia Pacific markets. K P Glockner, President, GEA PHE Systems, said, “We have specifically located the plant in Pune because of its proximity to Mumbai and availability of good infrastructure and manpower.”

Coromandel seals 5-yr import deal with Potash

Intertek inaugurates safety testing laboratory

(October) India’s Coromandel International clinched a five-year potash supply deal with Canada’s Potash that will see assured imports of around three million tonne of the commodity. The deal with the marketing consortium Canpotex will ensure at least 5,00,000 tonne of potash annually between April 1, 2011, and March 31, 2016. India imports around 5 million tonne of this key soil nutrient annually and the price secured in this deal could set the benchmark for subsequent import agreements.

(November) Intertek inaugurated its safety testing laboratory in Mumbai to provide enhanced testing services across diverse industries. To help make chemical processes safer, Intertek’s Safety Testing Laboratory claims to focus on the safe handling of chemicals in powdered form. “I have witnessed the Indian safety testing laboratory evolving over the last two decades from being an internal safety lab of Ciba to an outstanding, reputed, recognised and unique third party service provider to the Indian manufacturing industry,” said Dr Mara Beatrice Guzzetti, Head - EMEA & APAC, Intertek Expert Services.

Chemical World | January 2011

HIGHLIGHTS OF 2010 International

AGROCHEMICALS CF buys Terra for $ 4.7 billion

Agriculture majors form development pacts

(March) CF bought Terra at approximately $ 4.7 billion. Before it received the latest CF offer, Terra had accepted a bid from Norwegian fertiliser firm Yara for $ 4.1 billion in cash. Yara declined to raise its offer and instead was entitled to a breakup fee of $ 123 million. Terra will become a wholly-owned subsidiary of CF. In a joint press release, the firms claimed, “CF Industries and Terra have complementary strengths in nitrogen, providing breadth and flexibility in product offerings.”

(July) BASF and Monsanto agreed to add genetically engineered wheat to their partnership to develop yield and stress-tolerant seeds. The two firms are adding the crop to an agreement that began with corn, soy, cotton, and canola. They will add up to $ 1 billion in research funds to a program already funded at as much as $ 1.5 billion. Sumitomo Chemical and the Australian generic agrochemical producer Nufarm will cooperate to develop new pesticide formulations that will address the growing problem of weed resistance to the herbicide glyphosate in genetically-modified crops.

COATINGS Spolchemie and DIC form partnership

Arkema acquires Total’s three businesses

(July) Czech specialty chemicals company Spolchemie formed a joint venture (JV) with Sun Chemical, a subsidiary of Japanese chemical company DIC, for resins production. As part of the agreement, Sun Chemical will transfer production of alkyd and varnish resins from its plant in Austria, to Spolchemie’s site in Usti nad Labem, a town near Prague. Spolchemie stated that the new partnership builds on another JV between the companies, EPISPOL, formed in 2003. The new alkyd resins will strengthen Spolchemie’s presence in printing inks and industrial coatings.

(December) Specialty chemical maker Arkema agreed to pay more than $ 725 million to acquire three coatings ingredients businesses from its former parent, the French oil company Total. Arkema was spun out of Total in 2006. When the deal closes in the first half of 2011, “we should become a global leader in the coatings market alongside BASF and Dow Chemical,” said Thierry Le Hénaff, CEO, Arkema. The acquisition will include 20 sites in 13 countries employing 1,750 people. Sales from the three units is expected to exceed $ 1.1 billion in 2010.

JOINT VENTURES Two Japanese firms combine production facilities

Dow and Mitsui in JV

(June) Mitsubishi Chemical and Asahi Kasei, two highly diversified Japanese chemical producers, agreed to merge and downsize their ethylene facilities at the aging Mizushima petrochemical complex in southern Japan. Their move comes amid a looming glut of basic petrochemical products worldwide as large new facilities come onstream in the Middle East and China. For the past 45 years, Mitsubishi Chemical and Asahi Kasei have operated separate ethylene crackers at Mizushima, each with an annual production capacity of 5,00,000 metric tonne.

(December) The Dow Chemical Company and Mitsui & Co Ltd completed the formation of a previously announced 50:50 manufacturing joint venture to construct, own and operate a new membrane chlor-alkali facility located at Dow’s Freeport, Texas, integrated manufacturing complex. Named Dow-Mitsui Chlor-Alkali LLC, this landmark joint venture combines the strengths of two global companies to build a world-scale chlor-alkali plant on the US Gulf Coast that will drive integration advantage for downstream businesses and customers.

Momentive and Hexion to merge

BASF and Ineos form Styrenics

(September) Private equity firm Apollo Management decided to merge Hexion Specialty Chemicals and Momentive Performance Materials, both companies it controls, into a single specialty chemicals and materials maker. The combined firm, which will take the Momentive name, will have annual sales of about $ 7.5 billion. Hexion, the larger of the two firms, is a leading supplier of thermosetting resins for binding, bonding, and coating. Apollo created the company in 2005 from its earlier acquisition of Borden Chemical.

(December) BASF and Ineos, two of the world’s largest chemical companies, agreed to combine their styrenics businesses into a joint venture called Styrolution. The new company will be the global leader in styrene, polystyrene, and other styrenic plastics. With annual sales of more than $ 6.5 billion, the 50:50 venture will operate 29 plants in 11 countries and employ more than 3,000 people. The big JV will be the culmination of five years of restructuring for the styrene-based plastics industry, which has underperformed other polymer businesses for the past decade.

Chemical World | January 2011

International HIGHLIGHTS OF 2010

NEW FACILITY BASF and Petronas to set up plant in Malaysia

OCI and Wacker expand capacities

(December) BASF and Petronas signed a memorandum of understanding for a $ 1.3 billion complex in Malaysia that will produce a range of specialty chemicals. The new plant will complement a petrochemical complex the partners have jointly operated in Kuantan, Malaysia, for the past decade. The JV produces acrylic acid, oxo alcohols, butanediol and its derivatives, and phthalate-based plasticisers. In the coming year, the firms will jointly evaluate the possibility of expanding their product range to non-ionic surfactants, methanesulfonic acid, iso-nonanol and other C4-based chemicals.

(December) South Korean chemical firm OCI and Germany’s Wacker Chemie are each investing about $ 1.5 billion to increase production of polysilicon for solar cells. The combined additional annual capacity of 42,000 metric tonne (MT) will help meet increasing worldwide demand. OCI will invest $ 1.6 billion in a 20,000-MT plant at its site in Kunsan, South Korea. The facility will be completed by October 2012. Separately, Wacker’s plant near Cleveland will have capacity for 15,000 MT.

PETROCHEMICALS Braskem acquires Sunoco’s polypropylene business

Eastman exits polyester business

(February) The Brazilian chemical maker Braskem agreed to acquire Sunoco’s polypropylene business. The purchase, for about $ 350 million in cash, will mark Braskem’s entry into the US chemical production. Sunoco operates three polypropylene plants in Texas, Marcus Hook and Neal. Their combined annual production capacity is 9,50,000 tonne, about 13 per cent of installed US polypropylene capacity, by Braskem’s estimate. The deal also includes a technology and development centre in Pittsburgh.

(November) Eastman Chemical agreed to sell its polyethylene terephthalate (PET) resin business to DAK Americas, a subsidiary of the Mexican conglomerate Alfa, for $ 600 million. The sale includes two PET plants and a facility that makes the raw material purified terephthalic acid (PTA), all in Columbia. Eastman put the site up for sale in April after earlier sell off of PET plants in Europe and Latin America. Eastman’s performance polymers division, which is largely the PET business, lost money in 2008, 2009, and the first half of 2010.

South Korea’s Honam buys Malaysian firm

Invista sells polyester business to Indorama

(July) Titan Chemicals’ two largest shareholders, the Chao Group and the financial group PNB, agreed to sell their 72 per cent stake to Honam Petrochemical, South Korea’s second-largest petrochemical producer, for $ 917 million. A large company by Malaysian standards, Titan is small within the global petrochemical industry, with a net profit of $ 165 million on sales of $ 1.75 billion last year. A producer of olefins, polyolefins, and aromatics, it operates two ethylene crackers with a combined annual capacity of 1.1 million metric tonne.

(November) Koch Industries’ Invista subsidiary sold two polyethylene terephthalate (PET) plants to Thailand’s Indorama for $ 420 million. The transaction includes a 4,70,000 metric tonne per year plant in Spartanburg, USA, and a 5,35,000 metric tonne plant in Querétaro, Mexico, both of which make PET resins and fibres. Not included in the deal are its European PET business, its purified terephthalic acid (PTA) & PET technology licensing business, and its polyol & dimethyl terephthalate operations in Wilmington, N C.

PHARMACEUTICALS Astellas and OSI agree on $ 4 billion deal

Biovail acquires Valeant

(May) Astellas Pharma and OSI Pharmaceuticals signed a definitive agreement under which the Tokyo-based drugmaker will acquire OSI, a biopharmaceutical company based in New York, in a transaction valued at about $ 4 billion. OSI, which focusses on oncology, has one drug in the market, Tarceva, co-developed with Roche. The Swiss firm sells the product, which accounts for approximately 80 per cent of OSI’s sales. OSI reported revenues of $ 428 million in 2009 and an operating income of $ 153 million.

(June) Canadian pharmaceutical firm Biovail acquired Valeant Pharmaceuticals of Aliso Viejo, California, in a deal valued at about $ 3.3 billion. The transaction will create a company, to be called Valeant Pharmaceuticals, with combined annual revenues of about $ 1.75 billion. The firm will specialise in central nervous system therapies, dermatology treatments and generic drugs, with a focus on Canada & emerging markets. The deal significantly expands Biovail’s drug portfolio beyond its current concentration on extended-release technology and central nervous system therapies.

January 2011 | Chemical World

HIGHLIGHTS OF 2010 International

SPECIALTY CHEMICALS Dow to exit styrenics

BASF inks bid for Cognis

(March) Dow Chemical agreed to sell its Styron division to the private equity firm Bain Capital for $ 1.6 billion. Dow formed Styron last year as a means of carving out polymer businesses that no longer fit its specialty chemical strategy. Styron generated $ 3.5 billion in revenues last year. The business includes styrene derivatives such as acrylonitrile-butadiene-styrene and expandable polystyrene. It also houses Dow’s polycarbonate, latex and synthetic rubber operations, as well as production of some specialty polymers.

(June) In a deal valued at $ 3.8 billion, BASF bought personal care chemical maker Cognis from the private equity firms GS Capital Partners, Permira Funds and SV Life Sciences. Cognis, which has its headquarters in Monheim, Germany, had $ 3.2 billion in sales and $ 400 million in earnings before taxes, in 2009. It was the chemical business of consumer products maker Henkel, until the private equity firms purchased it in 2001. With an emphasis on renewable raw materials, Cognis makes surfactants, emulsifiers, emollients, rheology modifiers, and active ingredients for the personal and home care sectors.

MISCELLANEOUS Germany’s Merck to acquire Millipore

Arizona Chemical sold to American Securities

(March) Merck KGaA agreed to spend $ 7.2 billion to acquire Millipore, a maker of products for bioresearch and bioprocessing. After the acquisition, Merck will create a new business unit focussed on lab and industrial products for the life sciences sector with about $ 2.9 billion in annual sales. For Merck, however, the deal is an important step in the strategic reorientation of its chemical business, explained Karl-Ludwig Kley, Chairman, Merck. He added, “This is a combination with an excellent strategic fit, which will allow us to cover the entire value chain for our pharma and biopharma customers.”

(October) The private equity firm Rhône Capital sold a controlling interest in pine-based chemicals maker Arizona Chemical to American Securities, the New York City-based company that bought inorganics maker General Chemical in 2009. Rhône and Arizona management will retain a 25 per cent interest in the company, which generated about $ 770 million in sales last year. Terms of the deal for Arizona, the former chemicals unit of International Paper, are not being disclosed.

Accelrys and Symyx sign merger deal

Ashland divests distribution unit

(April) Accelrys and Symyx Technologies agreed to merge and form a scientific software company with a projected $ 170 million in annual sales. The merger will bring together largely complementary product lines across chemistry, biology and material science. Accelrys focusses on computer modelling and simulation products, whereas Symyx’ strengths lie in cheminformatics and electronic lab notebooks. The firms expect these areas to experience double-digit annual growth over the next few years.

(November) Ashland agreed to sell its Ashland Distribution unit to TPG Capital for $ 930 million. TPG, a private equity firm, is also an investor in elastomers-maker Kraton Performance Polymers. Ashland Distribution is the third-largest chemical distributor in the world, behind Germany’s Brenntag and the US’s Univar. “The sale of Ashland Distribution is not about its performance. The sale reflects Ashland’s strategic direction and completes a major step in our multiyear transformation into a high-performing specialty chemicals company,” said James J O’Brien, CEO, Ashland.

TSCA reform bill introduced

Thermo Fisher buys Dionex

(July) A bill to reform the Toxic Substances Control Act (TSCA) has been introduced in the US. Under this legislation introduced in the House of Representatives on July 22, Environmental Protection Agency (EPA) for the first time will determine whether commercial chemicals are safe. The measure (H R 5820) will revamp the TSCA, the federal law governing the manufacture of chemicals. TSCA has remained virtually unchanged since it was signed into law in 1976. Legislation will require producers to provide data on their chemicals for EPA safety review.

(December) Scientific instrument maker Thermo Fisher Scientific acquired Dionex, a maker of liquid and ion chromatography, in a transaction valued at $ 2.1 billion. The deal, expected to close in the first quarter of 2011, will bolster Thermo’s expansion in Asia and expand its scientific instruments business in the water quality, consumer safety, and life sciences markets. Dionex has 1,600 employees in 21 countries. Dionex will join Thermo’s analytical technologies segment.

Chemical World | January 2011

TREND ANALYSIS

Indian chemical industry

Opening up new vistas of opportunities While process of recovery of the global economy began in 2009, the year 2010 witnessed the consolidation phase. Being a supplier of feedstocks and raw materials to other industries, the impact of financial downturn on the Indian chemical sector was substantial. Companies mostly adopted hand-tomouth strategy during this testing time by keeping the inventories in check. Now, with strong demand witnessed for most chemicals and rising investment in this sector, this year promises better times.

o part of the world was immune from the downturn, but the impact was less on India. Companies adopted slew of measures such as streamlining their production, manpower, resources, inventories, etc to remain afloat. As the recovery picked up in 2010, companies saw demand and output of chemicals going up. Factors like huge market, availability of scientific manpower, developing infrastructure, focus on renewable energy, etc also attracted global players to invest more in India. While many companies showed good performance in 2009-10, here are a few of them which were in the news in 2010.

Asian Paints: Painting a bright future The booming construction industry, rising incomes and a shift in consumer preference to high-margin emulsions augur well for paint major, Asian Paints Ltd. For the year-ended March 31, 2010, Asian Paintsâ&#x20AC;&#x2122; sales and operating income increased by 20 per cent to ` 5,125.08 crore from ` 4,270.05 crore last year. In April 2010, the company commissioned its new paint manufacturing facility at

Chemical World | January 2011

Rohtak, Haryana, with an initial capacity of 1,50,000 kilo litre (KL). Further, the capacity of the Sriperumbudur plant in Tamil Nadu was increased to 1,40,000 KL. In addition, Asian Paints signed an MoU with Maharashtra Government to set up a mega project for manufacturing paints & intermediates at Kesurdi, Satara. Spiralling raw material prices are a concern. But, the company has been able to maintain margins through price increases and an improved product mix (high-margin emulsions account for about a third of its revenues). With the demand for decorative paints, which account for a bulk of Asian Paintsâ&#x20AC;&#x2122; revenues, expected to be robust, the company can leverage on its strong distribution network to further enhance its business.

BASF India: Aiming all-round growth During 2009-10, BASF India registered a significant increase in profit before tax mainly on account of high-capacity utilisation, along with improved operating results in the agricultural solutions, performance products and plastics businesses. Sales reached ` 13,817 million and profit before tax reached ` 1,514 million during the year-

TREND ANALYSIS

ended March 31, 2010, representing an increase of 24 per cent and 41 per cent respectively over the previous year. “In 2009, we created strong results, despite the crisis, through our discipline and focus on cost management. While the world was still grappling with the economic environment, India managed to overcome the economic crisis faster than the others,” said Prasad Chandran, Chairman & Managing Director, BASF India Ltd. The integration of Ciba companies into BASF will further augment business growth. The complementary business portfolio will create new business opportunities in paper chemicals, care chemicals and performance chemicals segment. India’s excellent demographics, rising income levels and a robust set-up of the company offer an ideal platform for future growth. BASF’s Asia Pacific Strategy 2020 has identified India as one of the major growth poles in Asia.

Clariant Chemicals India: Benefits from streamlining The year 2009 was not a good year for the chemical industry. However, Clariant Chemicals India utilised this period to streamline its operations. The result was there to be seen. For the full year, net profit rose 60.25 per cent to ` 108.14 crore in the year-ended December 2009 as against ` 67.48 crore during the previous year-ended December 2008. Post-streamlining, India could witness an increase in production activity in India in the near future to cater to not only the domestic market but also Clariant’s global requirements.

Deepak Fertilisers and Petrochemicals: Optimising resources Driven by both the improved availability of natural gas and refinery grade propylene from various sources, Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) registered high-

India: Investment destination Some of the major investments announced in 2010 were: R Private equity player Bain Capital invested ` 580 crore in Himadri

Chemicals in January R In March, Dr Rao Holdings Pte Ltd, a Singapore-based company,

commenced work on a ` 100-crore plant at Ongole, Andhra Pradesh, to manufacture sodium chlorate R The RPG Group company Phillips Carbon Black Ltd (PCBL) announced plans

to set up a 50,000-tonne carbon black plant at an estimated investment of ` 200 crore in April R In November, Air Liquide India announced plans to expand its capacities in

the country and set up more units with an investment of around ` 1,200 crore a year for the next decade capacity utilisation of its products for the year-ended March 31, 2010. Overall manufacturing volumes in the chemicals segment rose 26 per cent. Profit before tax increased 12.16 per cent to ` 237.78 crore in 2009-10 from ` 212 crore in 2008-09, while net profit increased 15.70 per cent to ` 172.05 crore in 2009-10 against ` 148.70 crore in 2008-09. In October 2010, the company announced the completion of its new 3,00,000 tpa Technical Ammonium Nitrate (TAN) complex at Taloja in Western Maharashtra, tripling its existing capacity. This will considerably strengthen DFPCL’s position as a key input provider to the Indian and global mining & construction/ infrastructure sectors.

DuPont India: Ingraining growth DuPont India is reportedly targeting business of $ 700 million in 2010, about 32 per cent of which would come from its crop protection chemicals and seeds operations. Another 25 per cent would be accounted for by automotives (paints, engineering polymers, brake linings, etc), with construction (20 per cent) and others (23 per cent) accrounting for the rest. “Emerging markets accounted for 31 per cent of our $ 26.1 billion sales in 2009. We see this share rising, in which India will certainly have a part to play,” said Ellen Kullman, Chairperson & CEO, DuPont, during her visit to the country in November 2010.

While the business in India would largely emphasise on agriculture, with a focus on offering solutions to increased food productivity with better disease and drought resistant seeds especially for rice & corn, it would also offer solutions to improve energy conservation through biofuels and photovoltaic material.

Jubilant Life Sciences: Demerger benefit In November 2010, Jubilant Life Sciences Ltd (formerly known as Jubilant Organosys Ltd), an integrated pharma and life sciences company, announced the demerger of its agri & performance polymers business into an independent company, Jubilant Industries Ltd, which will be a part of Jubilant Bhartia Group. This demerger should enable focussed growth across businesses for both entities. For Jubilant Life Sciences, one of the leading Custom Research and Manufacturing Services (CRAMs) companies, the buoyancy in global outsourcing business continues to provide an exciting opportunity for robust growth. In 2009-10, Jubilant’s total revenue was ` 3,362 crore. International revenue that comprises 65 per cent of its overall revenues stood at ` 2,454 crore, up by 15 per cent from the previous year. The nutrition ingredients business during FY 2010 was at ` 197 crore, registering a growth of 19 per cent.

January 2011 | Chemical World

TREND ANALYSIS

The dumping challenge During 2010, the Designated Authority in the Commerce Ministry had recommended anti-dumping duty on a number of chemicals to safeguard the domestic manufacturer. Here are a few of them: R Anti-dumping probe initiated into the import of melamine from the

European Union (EU), Iran, Indonesia and Japan R Interim anti-dumping duty was imposed on import of Sodium Tripoly

Phosphate (STPP) from China in May R Provisional anti-dumping duty was imposed on phenol imports from

Thailand and Japan R Definitive

anti-dumping duty was recommended Polytetrafluoroethylene (PTFE), from Russia

Kansai Nerolac Paints: On the driver’s seat One of the leading paint companies in India, Kansai Nerolac Paints Ltd (KNPL) recorded net sales of ` 1,706.38 crore in FY 09-10, marking a growth of 24.1 per cent over 2008-09. Commenting on the announcement, H M Bharuka, Managing Director, KNPL, said, “The good overall growth witnessed by the economy during the last financial year has helped KNPL achieve good growth for the quarter and the year as a whole. Both decorative and industrial businesses have done well. Decorative paints have witnessed a good demand, thanks to favourable government policies and budget. The growth in the automotive and consumer durables has helped fuel good demand for industrial paints. The picture of paint demand remains positive over the long term.” The size of domestic paint industry is estimated at ` 21,000 crore. The good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall business of the company.

LANXESS India: Growing from strength to strength While 2009 was a remarkable year for LANXESS in India, it further strengthened its footprint in the country in 2010 by setting up new units in synthetic rubber and cleanwater technology. It hopes to leverage the demand in Asia with these units.

Chemical World | January 2011

import

Dr Joerg Strassburger, Managing Director & Country Representative, LANXESS India, said, “The first half of 2010 had shown an impressive growth in revenue at 88 per cent. India will continue to be a growth driver for LANXESS and, we are optimistic about the projected growth trajectory in India.” With the newly acquired basic chemicals business fully integrated, successful commencement of production of the rubber chemicals plant and greenfield ION Exchange resins plant at Jhagadia, the business outlook for LANXESS in India seems to be promising.

SRF Ltd: Surging ahead Following an all-round improvement in operations across its businesses, SRF Ltd posted a more than two-fold increase in net profit at ` 324 crore for fiscal 200910 over a 24 per cent surge in net sales at ` 2,499 crore. SRF Ltd is reportedly planning to invest about ` 1,000 crore, spread over the next four years, in a new plant at Dahej in Gujarat. This would produce mostly fluorine-based specialty chemicals for the usage as intermediates in the manufacture of pesticides and drugs for customers in Europe, Japan and the US. The chemical-based industrial intermediates manufacturer is also scheduled to start work on a ` 143-crore capex proposal to enhance the capacity of its coated fabrics plant at Gummidipoondi in Tamil Nadu.

Tata Chemicals: Taking the right steps The year 2009-10 was a challenging one for Tata Chemicals, one of the world’s largest soda ash manufacturers, in view of the overall economic downturn during the year. The Project Action for Downturn Alleviation for Profit in Turbulent Times (ADAPT) initiated by the company with objectives of conserving cash, EBITDA improvement and meeting debt covenants was highly successful and delivered its objectives. For the first half of 2010-11 (April -September 2010), the company registered a net sales of ` 5,512 crore compared to ` 4,609 crore in H1 FY2009-10, an increase of 19.6 per cent. On the company’s performance for Q2 FY2010-11, R Mukundan, Managing Director, Tata Chemicals, said, “We are witnessing an encouraging environment for all our businesses both domestically and overseas. Our agri-business has taken a significant step forward with the launch of our first customised fertiliser at Babrala. We believe there is considerable potential for fertilisers for specific crops and conditions, with farmers looking to enhance crop yield and productivity. Also, soda ash and fertiliser demand growth continues to be strong.” In December 2010, Tata Chemicals inked a deal to acquire British Salt, a soda ash raw material maker in the UK for around ` 650 crore through its UKbased subsidiary, Brunner Mond. The move augurs well for Brunner Mond, which will be able to secure long-term supplies of a key raw material for manufacturing soda ash.

For a better future Overall, chemicals manufacturers achieved better-than-expected results in 2010, due to improved market conditions and their business strategies. Going forward, more focus will be on increasing investment in R&D and strengthening their position even further in the emerging markets like India.

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NATIONAL NEWS PARTNERSHIP

PI Industries partners with Sony for R&D

PI Industries Ltd (PI), one of the leading Indian agri-input & custom synthesis company, recently inaugurated the PI-Sony Research EPCC CONTRACT

Tecnimont ICB awarded contract for CDR plant Tecnimont ICB Pvt Ltd (TICB) has been awarded an important lump-sum turnkey project related to Carbon Dioxide Recovery (CDR) plant for National Fertilizer Ltd (NFL) in Vijaipur. The project foresees the provision of engineering, procurement, construction and commissioning (EPCC) services for the CDR plant. It involves setting up a new 450 TPD CDR plant and the technology RECOGNITION

LANXESS and Clariant win Frost & Sullivan awards

Clariant’s Sunilkumar Deshmukh (first from left) receiving the award

LANXESS India and Clariant Chemicals (India) Ltd recently received 2010 India Excellence in Chemicals, Materials and Food Awards, from Frost and Sullivan. LANXESS was conferred with the Green Excellence Award, while

Centre at Udaipur. Salil Singhal, Chairman, PI Industries Ltd, said, “It is a matter of great pride for PI to be associated with a global technology leader like Sony Corporation. PI and Sony will jointly carry out research in the area of synthetic organic chemicals for applications in the electronics industry.” This laboratory is part of PI’s R&D facilities at Udaipur and the first of its kind where Sony Corporation will jointly conduct research in partnership with PI. Dr Osamu Kumagai, SVP Corporate Executive & President,

Advanced Materials Laboratories, Sony Corporation, together with Singhal, inaugurated the R&D lab. Some senior members from Sony Japan and senior professors from Hokkaido University were also present on this occasion. Custom Synthesis is a key business focus for PI, where it has established a sizeable presence over the years. The company is associated with numerous international innovator companies, where it has experience in partnering on products right from the development phase to commercialisation.

will be licensed by Mitsubishi Heavy Industries (MHI) Ltd, Japan. TICB began its stint in carbon capture with two of first-of-itskind CDR contracts on lump-sum EPC awarded by IFFCO, an Indian fertiliser major, in the year 2005 and since then TICB has commissioned three such CDR projects in India. The fourth CDR plant was completed in Bahrain for Gulf Petrochemical Industries Co (GPIC). Speaking on the occasion, G Sathiamoorthy, Managing Director,

TICB, said, “TICB has achieved another feat on being awarded the prestigious NFL CDR plant. We will continue with our constant endeavour to deliver quality projects in record time. The acquisition of this plant maintains our monopoly on CDR plants in India.”

Clariant’s Industrial & Consumer Specialties Business bagged the Voice of Customer Award in the Product and Customer Service Excellence category for personal care additives. Commenting on the award, Dr Joerg Strassburger, Managing Director and Country Representative, LANXESS India, said, “We are glad to have been recognised for our sustainability strategy and environment-friendly initiatives. Sustainable development will always remain at the heart of all our initiatives and we strongly believe that this is in the interest of the Indian chemical industry, the end-consumers as well as the environment.” Sunilkumar Deshmukh, Head – Sales & Application, Industrial & Consumer Specialties Business, Clariant Chemicals

(India) Ltd, stated, “Our customers see us as the solutions providers. This recognition from the personal care customers sets a benchmark for us in further strengthening our partnerships with the industry. Our core strength lies in our offerings across the spectrum. This is ably backed by efficient manufacturing facilities, extensive formulation and application back-up. Our strategically located manufacturing base gives us the unrivalled position of being closer to our customers.” The maiden award ceremony for the chemicals, materials and food industry witnessed participation from many corporates like Dow, DuPont, BASF, Novozymes, Merck, Jubilant, Tata Chemicals, Castrol and Galaxy Surfactants, among others.

January 2011 | Chemical World

NATIONAL NEWS COMMEMORATING CHEMISTRY

2011 to be observed as ‘International Year of Chemistry’

Indian scientists, research scholars and students are celebrating 2011 as the ‘International Year of Chemistry’ (IYC) for the achievements and NEW FACILITY

RIL and Sibur to invest in butyl rubber plant Reliance Industries Ltd (RIL) has announced that it will invest $ 450 million along with Russian petrochemical firm Sibur in setting up a butyl rubber plant at Jamnagar, Gujarat. “The joint venture facility will have an initial capacity of 1,00,000 tonne of butyl rubber at RIL’s integrated refiningcum-petrochemical site in Jamnagar, and is expected to be commissioned by 2013,” said the company’s press release. The plant will initially produce regular butyl rubber and is expected POLICY MOVE

Gujarat Government says no to chemical units in Dholka

Gujarat Government has decided to put off the plan to set up a private chemicals complex in Dholka region

Chemical World | January 2011

contributions made by this important branch of science to the well-being of mankind. “The new year will be celebrated as the IYC in line with the resolution adopted by the 63rd general assembly of the United Nations in December 2008, with UNESCO and the International Union of Pure & Applied Chemistry organising the year-long event,” said C N R Rao, eminent scientist, while inaugurating the celebrations at Indian Institute of Science, Bengaluru. “All known matter is based on chemical elements or compounds and

our understanding of the chemical nature is based on our knowledge of the subject, as all living systems are controlled by chemical reactions,” said Rao, who is also Chairman of the Scientific Advisory Council to the Prime Minister. The Chemical Research Society of India will spearhead the celebrations of the IYC with a wide range of activities, including workshops, partnerships with industry for creation of national wealth and popularisation of achievements in the field to the public.

to manufacture other types of butyl rubber specialties in the future. “Sibur will provide its proprietary technology for butyl rubber polymerisation and finishing, while RIL will supply monomers and provide the JV with state-of-the-art infrastructure and utilities,” the release said. RIL will have a majority stake in the joint venture. Commenting on this development, N R Meswani, Executive Director, RIL, said, “This is a significant step towards RIL’s commitment to service India’s growing automotive sector by bringing in complex technologies, available with only few companies

globally. The setting up of domestic manufacturing plant of butyl rubber will fulfill a long-standing demand of the Indian tyre and rubber industry and this investment is part of RIL’s vision to emerge as a significant global payer in the synthetic rubber business.” Sibur is the largest petrochemical company in Russia and Eastern Europe.

in Ahmedabad district. Proposed on a 2,054 hectare land, the complex included a special economic zone (SEZ) for the chemical sector. The Gujarat Pollution Control Board (GPCB) has written a letter to the developer, Gujarat Construction Ltd, which said that highly toxic and effluent-generating industrial units cannot come up in the area. Government officials cite the decision as an example of state’s efforts to encourage non-polluting sectors ahead of the forthcoming Vibrant Gujarat business summit, which will take place in mid-January. “Environment department officials will guide the memoranda of

understanding (MoUs) to be signed at the summit, so that there is a clear understanding of the type of units that are proposed in Gujarat,” a senior official said. Gujarat accounts for over 50 per cent of India’s investment in the chemical sector, according to a Vibrant Gujarat document. Significantly, an environment impact assessment (EIA) report prepared for the GPCB said that there will be no major impact on environment if the project went ahead. In all, 712 units had planned to set up chemical, pharmaceutical, pesticide, dye stuff, paints, oil and food processing units in the complex.

NATIONAL NEWS ACQUISITION

United Phosphorus acquires RiceCo

United Phosphorus Ltd (UPL), an agrochemicals company, recently announced that it has acquired US-based RiceCo LLC, along with FERTILISERS

Sumitomo to acquire New Chemi Looking to expand its presence in the crop-protection products space in the Indian market, Japan’s Sumitomo Chemical Company recently acquired the Mumbai-based agro-chemical manufacturer New Chemi Industries. The acquisition is likely to complement the existing product lines being offered APPLICATION CENTRE

Merck opens application centre in Mumbai

Merck Ltd opened its new application and technology centre at Nerul, Navi Mumbai. Spread over 1,700 sq ft, the state-of-the-art centre will enable Merck to offer customised application and technology solutions ENVIRONMENT

NLC Nalco programme helps in substantial water conservation NLC Nalco India Ltd, a provider of essential expertise for water, energy & air, has helped Marriott Renaissance Mumbai Convention Centre drastically reduce water use in its cooling systems; which also resulted in less energy use from the facility.

Chemical World | January 2011

its subsidiaries and certain assets of the international business of its affiliate company. RiceCo mainly caters to the rice market and has a wide range of product offerings based on the herbicide Propanil for this segment. “RiceCo will benefit by leveraging United Phosphorus’ global sales and marketing network in taking its product offerings to the global rice market. RiceCo will provide rice farmers

direct access to United Phosphorus’ current portfolio of products,” said a statement from UPL. RiceCo will add a strong brand for the rice segment of United Phosphorus’ product portfolio, the statement said. This is the second acquisition of UPL in 2010, following the acquisition of the global Mancozeb business and the brand Manzate from DuPont in June last year.

by Sumitomo Chemical in the country through its subsidiary, SC Enviro Agro India Pvt Ltd, as New Chemi has a large portfolio of crop-protection products, Sumitomo officials said in a statement. “Sumitomo Chemical will take advantage of this acquisition as an opportunity to further strengthen its operations in crop-protection products and enhance its presence

& growth in India, one of the fast growing markets for crop-protection products,” the statement added. New Chemi Industries had achieved net sales of around ` 71.4 crore in 2009.

to its customers. Klaus Bischoff, Head - Laboratory Solutions Business Unit, Merck Millipore, and Dr Marek Dziki, Managing Director, Merck Ltd (India) officially inaugurated the new facility. Dr Dziki said, “Merck Chemicals offers over 15,000 products that cater to various industries, like pharmaceuticals, biotechnology, chemicals, etc, which are demonstrating a double-digit growth rate, . With the new centre, Merck will develop different formulations and new methods as per our customers’

needs; thereby giving them the necessary edge over competitors.” The centre has eight laboratories and in addition to chromatography analysis, there are laboratories for critical methods in the identification and separation of new chemical entities. Four of the labs address cosmetic actives & pigments, printing and coating applications. Basic formulations and concepts for all applications & promotional demo tools for coatings, printing, packaging & cosmetics will also be provided at these labs.

“Nalco’s 3D TRASAR® cooling water automation technology helped optimise the cooling system, allowing reuse of wastewater, cutting down fresh water use by 60,000 cubic metre per year. The 3D TRASAR® system works proactively to prevent the formation of scale, corrosion, and equipment fouling or malfunction. A fluorescent particle tagged to water treatment chemicals allows the system

to continuously monitor & adjust chemical consumption for optimal use, reducing overall chemical use and preventing system fouling,” said a company press release. Marriott was able to save more than ` 4.5 million in operating costs.

WORLD NEWS EXPANSION

Clariant builds innovation centre in Frankfurt

The new innovation centre of Clariant

Swiss specialty chemicals company Clariant is planning to expand its global R&D activities at its site in Frankfurt, Germany. The new 23,000 sq mt Clariant Innovation Center is due to INVESTMENT

LANXESS invests in leather chemicals plant in China LANXESS will invest about Euro 30 million in a plant for leather chemicals to be built in Changzhou, China. This is the single-largest investment by the company’s leather chemicals business unit to date in China. The facility, with an annual capacity of up to 50,000 metric tonne (MT), will be located at the MILESTONE

Malvern Instruments’ product recognised for innovation

EXHIBITION

Singapore to host first Informex Asia in November The first edition of Informex Asia will take place between November 9 and 10, 2011, at Suntec, Singapore. It is considered to be one of the leading meeting places for buyers and sellers of high-value chemistry, being organised by UBM Live. The format of Informex Asia will be similar to

Chemical World | January 2011

be completed by the end of 2012. The planned centre will be located in the Frankfurt-Höchst Industrial Park and represent an investment of more than Euro 50 million. The new innovation centre will closely cooperate with all the R&D satellite sites in Gendorf (Germany), Lamotte (France) and Suzano (Brazil) as well as 40 application centres around the globe. Clariant has invested over Swiss Francs 130 million in R&D in 2010. “After the completion of the successful restructuring, innovation in

combination with an increased strategic focus on profitable growth will be a key cornerstone for our company. The goal is to establish Clariant as an innovation leader in the field of specialty chemicals within the next few years,” said Hariolf Kottmann, Chief Executive Officer, Clariant AG. The new innovation centre was designed by HPP Architekten of Düsseldorf. It features an open architectural office and laboratory concept that combines chemical R&D activities.

Changzhou Yangtze Riverside Industrial Park. It is planned to go on stream by the first half of 2013 and will produce premium LANXESS leather chemicals such as Tanigan, Isoderm, Euderm and Levotan for the local Chinese market for applications like leather tanning, dyeing and finishing. “China today is the largest market for leather chemicals worldwide, with steady growth expected. This new investment

also underlines our successful strategy of focussing on the booming BRIC nations, led by China,” said Dr Axel C Heitmann, Chairman, LANXESS AG.

Malvern Instruments’ Malvern Link II has been named by Processing magazine as one of the breakthrough products for the year 2010. This powerful OPCstandardised software package provides a universal interface for system integrators, simplifying the integration of analytical devices with expert control systems in manufacturing processes. The OPC is a universally recognised body that promotes open connectivity via open standards.

Rob Norris, Head - Process Business, Malvern, confirmed that there has been widespread enthusiasm to the concept offered by Malvern Link II software since its launch in March 2010. He further added, “Essentially, Malvern Link II transforms analyser integration for automated control from being a costly, bespoke task for each individual plant to becoming a more rapid, routine and cost-effective procedure.”

that of the flagship InformexUSA event and will feature a diverse exhibit show floor featuring around 100 domestic & international exhibitors, a high-level conference and various networking opportunities. The two-day conference will feature a line-up of important personalities from both business & trade associations and will cover topics such as outlook for the South East Asian chemical

market, transportation & distribution of chemicals, new technologies & initiatives, sustainability, government regulations affecting the chemical industry and more.

WORLD NEWS EXPANSION

BASF eyes more products for its Nanjing site

Dr Wang Tianpu, VC and President, Sinopec, and Dr Martin Brudermüller, Member of the Board of Executive Directors, BASF SE, signing the agreement

BASF and Sinopec are planning to invest $ 1 billion at Nanjing (China). The two companies said that they AWARD

Honeywell’s UOP receives AIChE 2010 Sustainable Award UOP, a Honeywell company, has been awarded the American Institute of Chemical Engineers (AIChE) 2010 Sustainable Energy Award for its work on biofuels process technology. The award from AIChE, one of the leading associations for chemical engineering professionals, recognises contributions NEW DEAL

Dutch firm strikes deals in nutrition and antibiotics

The Dutch specialty chemicals company, DSM, closed out 2010 with two transactions intended to sharpen its focus on the life and materials INNOVATION

Novel thermochemical reactor developed for fuel Researchers have developed a novel thermochemical reactor that uses sunlight to convert carbon dioxide and water into hydrocarbon-fuel precursors at a relatively high efficiency. The feat is a key step towards using solar energy to produce much-needed liquid fuels more efficiently than may

will undertake feasibility studies for the construction of a butyl acrylate plant and an acrylic acid plant with capacity of 1,60,000 metric tonne (MT) per year. In addition, the firms plan to build an acrylic superabsorbent polymers plant to complement existing facilities in Antwerp, Belgium, and Freeport, Texas. Separately, BASF announced that it will expand the capacity of the Antwerp and Freeport superabsorbent polymer plants by 35,000 MT apiece to a combined 4,70,000 MT. In Nanjing,

BASF and Sinopec will also expand their 2-propylheptanol, styrene, and nonionic surfactants facilities. In addition, two companies are considering to construct a complex to make propylene oxide via a hydrogen peroxide-based route recently developed by BASF and Dow Chemical. BASF is in the middle of a major expansion programme in Asia. In December, the company along with its partner Petronas announced to invest $ 1.3 billion in Malaysia for building a specialty chemical complex.

toward the innovation, sustainability and conservation of energy through the application of chemical engineering. “Since our founding, more than 90 years ago, UOP has been committed to developing the technology that our customers will need for tomorrow. The solutions we have created to convert biological feedstocks into real, drop-in fuels are not only economically-viable under current regulations, but are also

aligned with today’s standard refinery practices and can greatly contribute to the reduction of greenhouse gas emissions,” said Rajeev Gautam, President and CEO, Honeywell’s UOP.

sciences. It struck a deal to acquire US-based Martek Biosciences for $ 1.1 billion, and it agreed to sell half of its anti-infectives business to China’s Sinochem for about $ 275 million. The announcements came just days after DSM signed an agreement to sell its elastomers business to LANXESS. That sale, for more than $ 400 million, completed a four-year programme to exit commodity businesses in fertilisers,

melamine, citric acid, and benzoic acid. “Total proceeds will come in at about $ 1.6 billion,” said a DSM press release. The Columbia-based Martek produces polyunsaturated fatty acids – a family of nutritional supplements – via algal fermentation. Its flagship product, docosahexenoic acid, is added to almost all major brands of infant formula, as well as to foods, beverages, and dietary supplements.

be possible with alternative methods, such as photocatalysis or microbial fermentation-based hydrocarbon-fuel production. The new thermochemical reactor is believed to be more efficient than previously developed ones, whose efficiencies could not be comparably measured. Also it is amenable to continuous operation, suggesting that an industrial-scale version of

the process could be developed for solar towers.

January 2011 | Chemical World

LEADERS SPEAK

“To be successful, Indian companies must master the art of innovation”

…says Dr Kishore M Shah, President, Indian Specialty Chemical Manufacturers’ Association. A veteran in the Indian chemical industry, he completed Ph.D (Tech) in Dyestuff in 1965 from ICT, (formerly UDCT) Mumbai. He was also conferred Self-Made Industrialist Award ‘Udyog Patra’ in 1992. A technocrat, consultant and industrialist, Dr Shah speaks to Prasenjit Chakraborty on various aspects of the specialty chemical industry in India.

Chemical World | January 2011

LEADERS SPEAK

Scenario of specialty chemicals market in India India’s specialty chemicals market represents around 24 per cent of the total chemicals industry. With a paradigm shift towards developing nations like India, the world is eagerly looking to these countries to define their future strategies. India, especially, is making rapid strides in segments like complex fine chemicals, specialty chemicals, imaging chemicals, pharmaceuticals, API/bulk drugs, pigments, commodity grade fine chemicals, etc. MNCs are viewing India as an attractive outsourcing destination due to the country’s low-cost advantage and significant quality control measures. Foreign companies are shifting their manufacturing base to India mainly due to a highly motivated and creative workforce, huge pool of scientists & chemical engineers, and low labour & equipment costs, leading to around 5060 per cent cost savings relative to the US and the EU.

Strategies to encourage product development & value-addition The modern economy is fast-moving, dynamic and ever-changing. To be successful, Indian companies must master the art of innovation, constantly developing & adopting the best products, techniques and practices available. We need to create a modern regulatory framework that drives innovation and encourages growth & productivity. We must also promote innovation with more interaction between businessmen & academicians, and provide help for the development of successful clusters & high growth companies of tomorrow.

Challenges on the way Most of the chemicals produced by the industry are commodities. The industry faces steep competition due to increased capacity in the Middle East, rest of Asia and Latin America. Indian specialty chemicals industry is plagued

by a number of issues. If these issues and challenges are not resolved in time, then the domestic industry will lose its competency to international players. Some of the major issues faced by the domestic industry include poor infrastructure, high raw material & capital costs, taxes, loss of protectioncover and low economies of scale, among others. Poor infrastructure is one of the critical issues deterring the growth of the specialty chemicals industry. According to industry analysts, the lack of high-quality port handling & storage facilities, along with lack of a robust pipeline and rail & road infrastructure, hampers the growth of the industry. Key issues faced by the industry on account of inadequate infrastructure are: slow growth & increased costs, primarily due to delays in distribution and those occurring at ports. Other major areas of concern are shortage of power and also high power costs. Companies are pushing for special rules to combat this problem, as the hours of lost production due to power outages has become a norm in states like Maharashtra.

Advantage India Although price and raw materials are important aspects for the specialty chemicals segment, innovation and technology are the prime focus areas. Improving & upgrading the product quality through innovation & diversifying the product portfolio are extremely important for the industry to maintain the competitive edge. This will require Indian specialty chemicals manufacturers to increase investment in R&D activities, to sustain themselves through the tough business environment. These companies can leverage on the lower R&D costs in the country to undertake intensive research for developing value-added products. India’s cost advantage will also be a key driver to govern outsourcing, and Contract Research and Manufacturing Services (CRAMS) in the country.

Improving & upgrading the product quality through innovation & diversifying the product portfolio are extremely important for the industry to maintain the competitive edge. This will require Indian specialty chemicals manufacturers to increase investment in R&D activities. Specialty chemicals business in India & China India and China are emerging as major markets among developing nations. The Indian specialty chemicals industry holds potential in all the spheres. Growing economy, favourable government policies, and above all, availability of low-cost manpower, quality processes, and presence of R&D units & universities have all gone a long way in strengthening the industry.

Outlook for the industry India’s specialty chemicals industry is expected to grow at a Compounded Annual Growth Rate (CAGR) of 15 per cent – almost double the growth of the global specialty chemicals industry. Exports of specialty chemicals from India are poised to grow from $ 4 billion in 2007 to $ 13 billion in 2013, representing a CAGR of 22 per cent. Due to the highly fragmented and segmented nature of the market, the future prospects vary for various segments and even from company to company. In order to overcome the volatility in demand, many players are now focussing on expanding and maintaining a broader portfolio of products. Specialty chemicals are now finding more applications in the construction, automotive, electronic and water treatment segments. These segments are most likely to drive the growth of the Indian specialty chemicals market in the next five years.

January 2011 | Chemical World

FACILITY VISIT

LANXESS India’s Jhagadia site

Raising the benchmark in processing

With the commissioning of Ion Exchange Resins (ION) plant at Jhagadia, Gujarat, LANXESS India has ushered in a new era in addressing one of the most critical issues the world is facing today – clean water. Demand for clean water is set to increase substantially worldwide by 2030. In the Indian context, it is likely to grow disproportionately due to the rapid rise in population and increasing urbanisation. The ION produced at the plant will be used in water treatment, cleaning of industrial wastewater and in the development of ultra-pure water solutions for many industries in India and abroad.

Prasenjit Chakraborty

otential of the Indian market in the field of water treatment can easily be ascertained with the opening of Asia’s first Ion Exchange Resins (ION) plant recently by LANXESS in Jhagadia, Gujarat. The new plant has been constructed over a period of two years in the new chemical park in Jhagadia. The annual capacity of the plant is 35,000 metric tonne (MT). Around 200 employees are engaged in the ION plant to manufacture products for industrial water treatment, semi-conductor, pharmaceutical, food and power industries. The opening of ION plant marked the successful completion of the second expansion phase in Jhagadia. The first project phase, which was completed

Chemical World | January 2011

in March 2010, saw a rubber chemicals production plant becoming operational.

ION plant The new plant is constructed on an area admeasuring 30,000 sq metre. Around 5,000 MT of steel and 4,00,000 metre of electric cable are used in the construction of the approximately 40-metre high production building. One of the unique features of the LANXESS plant is the treatment of wastewater, wherein it is pre-cleaned in a separate wastewater treatment plant before it is released into the Jhagadia chemical park’s wastewater system. The company has invested a substantial amount for environment-friendly energy generation. LANXESS uses a cogeneration plant for its own power station, which runs on natural gas. It has

FACILITY VISIT

also set new benchmarks for sustainable production. Overall, around 20 per cent of total construction costs were used for sustainability of projects. LANXESS is one of the world’s leading producers of ions, adsorbers and functional polymers. For more than 70 years, the brand name Lewatit has been synonymous with premium products that find use in more than 500 applications. Interestingly, more than 20 per cent of sales are achieved with products that are less than three years old. Ions are used to remove dissolved components from liquids. The first step in the process is to apply functional groups to small polymer beads. Placed in the liquid, these functional polymers adsorb specific anions or cations, and release others in exchange. For ION, water treatment is the biggest application area. In the households, such products are used to soften water, among other applications. It is ensured that the calcium ions responsible for water hardness are replaced by ‘soft’ sodium ions. High-performance ions are also used in industries like power. “Our brand Lewatit is used in the production of high-purity water and steam in order to avoid incrustations and corrosion. This improves the efficiency, operating reliability, service life and safety of power plants,” claims Dr Joerg Strassburger, Country Representative & Managing Director, LANXESS India Pvt Ltd.

Tapping the potential in India Different studies indicate that worldwide the demand for clean water is set to increase by around one-third by 2030. In Asia and especially in India, the demand is likley to grow disproportionately due to rapid population explosion and increasing urbanisation. “Water, a quintessential requirement for life, is unfortunately a scarce resource across the globe,” laments Dr Strassburger. Studies reveal that in 20 years, the demand for water will exceed the current supply by about 40 per cent. Naturally, the issue has to be

ION plant at Jhagadia site R Annual capacity: 35,000 MT R Area: 30,000 sq metre

set up an ION laboratory at the site to foster innovation in this area. Some of the applications of the ion exchange resins in India include industrial wastewater & process stream treatment, development of solutions in the food & beverage industries, energy production, chemicals & petrochemicals, pharmaceuticals, household appliances, sugar and starch production, among others. Given this wide array of options, the company has an immense market potential in India and is working towards ramping up its presence here. Further, ions could be used in hydrometallurgy, where these are used in the treatment of metals such as gold, copper, nickel and cobalt solution. Special grades have been developed to isolate these metals and clean the water.

R Workers: 1,800 (engaged to

complete the construction) R Steel consumed: 5,000 MT R Electric cable used: 4,00,000

metre R Jobs generated: 200

addressed on a priority basis. “LANXESS is one of the companies that is making determined efforts to resolve this,” asserts Dr Strassburger. In order to meet the demand for clean water for both domestic and industrial consumption, LANXESS has established the state-ofthe-art ion exchange resins plant in Jhagadia. In addition, the company has

An overview of the Jhagadia site

Rubber chemicals plant The rubber chemicals plant of the company is also located in the same site and started functioning in March 2010. It supplies various solutions to the fast-growing Indian tyre and rubber industry. Apart from this, LANXESS is also supplying its customers in the rubber, oil and lubricants industries worldwide with Vulkanox antioxidants from its Indian plant. This plant makes LANXESS the only Western company producing rubber chemicals in India. In fact, the rubber chemicals plant was earlier situated in Thane, Mumbai, which was relocated to Jhagadia. “We

Tankfarm for raw materials for ion exchange resins plant

January 2011 | Chemical World

FACILITY VISIT

Dr Joerg Strassburger Country Representative & Managing Director, LANXESS India Pvt Ltd

India is preparing to become the third-largest market for engineering plastics after the US and China. It is therefore logical for LANXESS to support the fast-growing Indian customer base locally with high-calibre production. are the world leaders of synthetic rubber, and India is an important market for us. In view of increased urbanisation, expanding infrastructure and automotive consumption, tyres will play an important role in the Indian automotive market,” observes Dr Strassburger. Tyres, in turn, demand highperformance synthetic rubber and rubber chemicals. “The rubber chemicals plant in Jhagadia is rightly positioned to cater to the Indian as well as the Asia-Pacific markets at large,” he adds. Both ION and rubber chemical plants (Jhagadia) have central utility and engineering services, cogeneration plant fuelled by natural gas to produce electricity & steam, a full-fledged effluent treatment plant to treat industrial wastewater, and an incineration plant for burning all vent from the process plant. Both the

plants are state-of-the-art facilities with modern equipment and processes that are efficient and effective. “Our plants ensure minimum and safe disposal of effluents,” states Dr Strassburger. Overall, the company has invested around Euro 50 million in both the production facilities in Jhagadia.

Best practices Some of the best manufacturing practices are being followed for costeffective production, while maintaining high quality and safety standards. The quality system and quality assurance programmes are in place to ensure consistent manufacture of high quality products. These processes and systems are same as those adopted in Germany. The plant will be certified for ISO 8001 – 2008, and ISO 14001 – 2004 quality standards in the first half of 2011.

Industrial safety standards The manufacturing standards concept is identical to its plants in Germany. Safety reviews and compliance audits are the basis for safe operations of production facilities at LANXESS. The company accords environmental protection, health, safety & quality the same priority as commercial efficiency and follows the highest international standards of safety & environmental protection. Its objective is sustainable, forward-looking development, which meets the demands of economics, ecology and society in equal measure.

Ion exchange resins laboratory

Chemical World | January 2011

“Health, safety, environment and quality (HSEQ) are the cornerstones of our sustainability strategy,” claims Dr Strassburger. Similarly, LANXESS India aims at creating a safe and healthy work environment for its employees, contractors, visitors and other stakeholders. “We believe that all work-related injuries are preventable, and hence are committed to manage our activities in such a way so as to avoid unnecessary or unacceptable risks to the health and safety of our stakeholders,” states Dr Strassburger. In its endeavour to ensure safety, every new employee in the manufacturing set-up has to undergo an orientation on safety standards. Post-orientation, the employee undertakes two to six months of training on the shopfloor along with experts and trained personnels. This is followed by an evaluation and assessment. If cleared on all parameters, the employee is allocated independent responsibility on the shop-floor.

Expansion plans The company is leaving no stone unturned to exploit the potential offered by the Indian market. Taking due cognisance of the fact, the next stage of expansion for Jhagadia is planned for 2012. From then on, high-tech plastics from the Semi-Crystalline Products (SCP) business unit will be produced with a capacity of 20,000 MT per year. “India is preparing to become the third-largest market for engineering plastics after the US and China. It is, therefore, logical for LANXESS to support the fast-growing Indian customer base locally with high-calibre production,” says Dr Strassburger. India is often described as an emerging manufacturing hub in Asia and LANXESS’ ongoing activities in the country truly corroborate this. The company’s activities in India may generate further interests among other foreign companies in different sectors to invest and set up bases in India.

SECTOR WATCH

With an impressive GDP of 9 per cent per annum, India is witnessing a surge in FDI, as well as indigenous projects across all industrial sectors. In light of this, EPC contracting is gaining major impetus to keep the entire process, right from idea to implementation, a smooth affair. The focus of Engineering Procurement & Construction (EPC) projects today, is shifting towards providing and promoting green technologies for sustainability not just in the coming decade, but also, generations to come.

Chemical World | January 2011

SECTOR WATCH

Mahua Roy

he chemicals and petrochemicals sectors are literally and figuratively ‘fuelling’ the country’s economy. A prominent rise in investment in these sectors has been witnessed in the past few years, thus projecting these as the backbone of industrial development. Most of the new projects are embracing the EPC system. With this format, the EPC contractor becomes the single point of responsibility, thus offering better cost realisation, and thereby promising project delivery within the scheduled & committed timeframe. Also, if viewed from the project owner’s perspective, this type of turnkey contracting is a better proposition, as the responsibility and majority of risks involved with the project lie with the contractor. As the EPC projects are getting complex by the day, timeline of the project is becoming more unpredictable than ever. With the emerging trend of short project durations, organised synchronisation is expected between the contractor, consultant and also, the vendors. The clients, on their part, intend to leverage the maximum benefit at minimal risk from the project. Contractors, at their end, need to balance typical issues in terms of costs, pricing, risks and resources for the mega projects. A well-defined EPC contract can significantly reduce the cost and time overruns in real time. But today, along with the aforementioned characteristics, EPC

contractors and clients alike are concentrating more on the green aspect of projects. The Kyoto Protocol and the developing environmentallyconscientious attitude is poised to turn this into more than just an emerging trend, more so, into a necessity or even a pre-requisite.

Shift in focus A proactive and supportive government policy has always been the driving force for implementation of futuristic and sustainable technologies in this front. According to a report released by the United Nations Environment Program (UNEP) titled ‘Global Trends in Sustainable Energy Investment 2009’, India’s renewable energy investment grew by 12 per cent in 2008. An enviable investment of $ 3.7 billion in just one year makes the ambitious target set by the Indian Government in the 11th Five-Year Plan, an achievable target. The plan aims for the energy sector to grow to $ 19 billion between 2008 to 2012, with renewables making up 20 per cent of the 70,000 MW of total additional energy planned from 2008-2012. Optimal harnessing of these green technologies is what the contractors are aiming for, and it is well-supported and accepted by clients. “Consumers are beginning to pay a premium for green products & services, and governments are more willing to subsidise green investments to motivate producers. A decade ago, such interest was primarily academic, but now we are seeing more and more semi-commercial and commercial demonstrations of viable green technologies,” says Srinivas Achanta, Senior Marketing Director – India & South East Asia, UOP - A Honeywell Company.

Green: The colour of future

Courtesy: Aker Solutions

The National Authority for Development Mechanism projects has so far approved projects, which, if approved

Clean (CDM) 1,467 by its

Srinivas Achanta Senior Marketing Director – India & South East Asia, UOP - A Honeywell Company

Consumers are beginning to pay a premium for green products, and governments are more willing to subsidise green investments. A decade ago, such interest was primarily academic, but now we are seeing more commercial demonstrations of viable green technologies. international counterpart, can net India $ 6.15 billion by 2012. CDM projects are undertaken by developing countries to reduce carbon emissions into the atmosphere in some way or the other, such as saving energy or replacing a thermal by a hydel power plant, etc. The carbon emissions saved are paid for by developed countries, which are legally obliged under the Kyoto Protocol to reduce their emissions. The international CDM Executive Board has so far approved 469 of the projects recommended by its Indian counterpart, making India the world’s second-largest CDM market after China. Though India does not have any legal obligation to reduce carbon emissions under the Kyoto Protocol, if all the CDM projects are approved by the executive board, it will reduce 615 million metric tonne of carbon dioxide emissions by 2012. “In the ultra competitive EPC sector, the current tendency is to equate the colour - green with the colour of money. This is something, which I hope should change soon, especially in the refinery sector, with evolving statutory requirements making reduction of environmental impact a priority. This should see an increased focus on sustainability, and tenders having more mandates on the use of green concepts,” voices Vinayak Pai, Associate Director – Operations, Aker Solutions.

January 2011 | Chemical World

SECTOR WATCH

More than just jargons New technologies in this scenario are being embraced by the industrial fraternity during the setting up of new projects. Turning the technical jargons into reality, one is sure of a tomorrow which is safe, secure and sustainable. A few of these are listed below: CCS: Carbon Capture and Storage (CCS) is the most innovative method promoting carbon abatement, offering the potential for the deepest cuts in CO2 emissions. It involves the deployment of a chain of technologies for CO2 capture, transportation and storage, rather than developments focussed on the combustion plant alone. It can reduce CO2 emissions from large industrial sources and coalfired power stations by approximately 85 per cent depending on the type of non-capture plant displaced. Second-generation feedstocks: Such fuels are made from lignocellulosic biomass feedstock using advanced technical processes. Lignocellulosic sources include ‘woody’, ‘carbonous’ materials that do not compete with food production, such as leaves, tree bark, straw or woodchips. They have a more favourable greenhouse gas (GHG) balance. Cellulose ethanol could produce 75 per cent less CO2 than normal petrol.

Vinayak Pai Associate Director – Operations, Aker Solutions

The main challenge is to convince owners to increase CAPEX spend in the interest of sustainability. We have done LEED certification studies for capital projects. Apart from the environmental benefits, they have been proven to improve working environment and even reduce operational expenses.

Chemical World | January 2011

Courtesy: Aker Solutions

LED lighting: LED lights are four times more efficient than a regular incandescent light bulb and last 10 times longer. LED lights also use between 50 and 80 per cent less energy than an incandescent bulb. Reverse osmosis (RO): One of the most promising technologies being accepted by the industry is that of RO, which can be used to treat boiler feed water, industrial wastewater, process water and more. It is also a major contributor towards futuristic zeroliquid discharge plants. Leadership in Energy & Environmental Design (LEED): It is an internationally recognised green building certification system, providing third-party verification that a building or community was designed and built using strategies intended to improve performance in metrics such as energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts. Originally aimed at commercial establishments, it is being extended to industrial projects these days.

Challenges to overcome Although sanguine and optimistic, the impact of these technologies is yet to be realised, with the generation of a thundering response. Service providers echo certain hurdles on the way. “The main challenge is to convince owners to increase CAPEX spend in the interest of sustainability. We have done LEED certification studies for capital

projects, but the need is to drive harder to actually implement the concepts. Apart from the environmental benefits, they have been proven to improve working environment and even reduce operational expenses (OPEX),” says Pai. Also, another area of concern is that of Safety, Health and Environment (SHE). “SHE is a big challenge for projects in India, due to the shortage of skilled manpower and is thus, still a developing attitude. However, compared to the past, we can see a marked improvement in the stance of corporate India. The gap between the international and domestic SHE mindsets is still wide but the good news is that it is narrowing fast,” explains Pai.

A safer tomorrow In spite of all the shortcomings and challenges, the concerted efforts of the industry and service providers have put the country in a leading position and it has set an example to the world when it comes to implementation of green projects. “As oil supplies diminish, demand rises and the impact of carbon emissions becomes a part of economic considerations, green technologies will become increasingly viable from a production standpoint. Given that the consumers are getting increasingly aware of green products and are progressively more willing to pay a premium for them, this market is bound to grow by leaps and bounds,” concludes Achanta.

Chemical World_Jan-11_ IGF- Front -Pg45-46

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PRACTICAL TIPS

EPC contracting

Reducing risk, maximising benefit Managing cost & time schedule, and effective coordination with owners, sub-contractors, technology suppliers as well as regulatory authorities are crucial for execution of Engineering, Procurement and Construction (EPC) contracting. There can be unforeseen delays on account of obtaining various approvals, statutory regulations, etc that affect the execution of EPC contract. Yet, as a result of its immense advantages to project owners, it is now gaining momentum in India.

K R Madan Mohan

PC contracts are more prevalent in Europe and Middle East. In India, EPC contracting is now being undertaken on a large scale. The project owners in India are looking at the possibilities of contracting projects on EPC basis in order to primarily avoid delays and cost escalation. The traditional way of executing projects by giving multi-contracts, what is popularly known as Engineering, Procurement and Construction Management (EPCM) services, is often facing challenges on the cost and time schedule front. By opting for EPC contracting system, the project owners are essentially passing on the entire risk of executing the project to the EPC contractor. In case of EPCM mode of contracting, the responsibility and liability is divided among the contractors and to a large extent, the risk lies with the project owner. The main problem areas of EPCM contracting system include mismatches pertaining to the scope & responsibilities, coordination & communication interfaces among multiple contractors and vendors leading to differences & disputes, potential gaps in allocation of risks, responsibilities & liabilities,

time taken for executing multiple contracts, etc. Moreover, the risk of technology, time schedule and cost escalation lies with the project owner. In order to avoid such complications, the project owners are now increasingly opting for EPC contracting system so that the entire risk in respect of the project including cost escalation, delivery schedule and guarantees are passed onto the EPC contractor on single-point responsibility basis. Obviously, when the project owner offers a project on EPC basis, the price will be higher; however, the risk is passed on to the EPC contractor entirely.

The mode of operation EPC contracting necessarily involves basic or extended basic engineering, detailed engineering, entire supply of material and equipment, project management, construction, erection, start-up & commissioning, conducting guarantee test runs to prove the guarantees and training of personnel, among others. Thus, it is the total responsibility of the EPC contractor to ensure that all these tasks are completed in time and the plant is handed over to the project owner, what is known as â&#x20AC;&#x2DC;turnkey basisâ&#x20AC;&#x2122; for operation and maintenance of plant.

January 2011 | Chemical World

PRACTICAL TIPS

The key elements of EPC contracting inter alia includes clear division of scope of work, fixed contract price, guaranteed time schedule, single-point responsibility, accountability to meet process parameters such as quality of product, capacity of plant, guaranteed percentage of power & raw-material consumption and other work costs, etc. In this scenario, it is obvious that the risks, responsibilities and liabilities, which otherwise could have been shared among multiple contractors together with the project owner, are now entirely passed onto the EPC contractor. But, the project owner has to pay a price to the EPC contractor for shouldering this high risk, responsibility and liability. For the EPC contractor, it is a challenge and make or break situation. On one hand, if the project is executed efficiently well within time, then the contractor may be able to make good profit. However, on the other, if the project is managed badly, then he will have to shoulder huge liability. The main liabilities for an EPC contractor includes liquidated damages on account of delay in time schedule and not meeting the guarantees, reperforming the contractual obligations in case of proved guaranteed parameters are below the liquidated damages leviable limit, etc.

Chemical World | January 2011

Normally, the EPC projects are always long duration contracts ranging from 20 to 60 months and sometimes even longer. For the EPC contractor, almost 80 to 90 per cent of the total project cost is passed through the books of account. In an unfortunate event of taking 10 per cent hit on the project, it will be extremely difficult for the EPC contractor to recover these losses as his involvement in execution of such projects will continue for a longer time. In any EPC contracting, one will find two key elements important for execution of the project, ie construction and procurement of equipment & materials. These together take away almost 70 to 80 per cent of the total project cost. If the EPC contractor is capable of managing these two activities efficiently, he can definitely make good profits. Whereas if any one of these activities is managed poorly, undoubtedly he will end up making losses, hence EPC business involves risks. Contractors are exposed to various risks while carrying out the project. Some of the key risks faced by the contractors are explained below:

a possible solution to minimise and share the burden of this risk.

Time schedule

Risk of foreign exchange variation

Often, the time schedule for the execution of a project is underestimated. It mainly depends on the supply of critical equipment from vendors. Moreover, delay in construction activities is often considered to be equally important in adding to the time. Although the project schedule is closely monitored, these two activities can cripple the activity forcing the Lump-Sum Turn Key (LSTK) contractor to pay huge penalty to the project owner on account of delay. Even though the EPC contractor may have considered some contingency for such eventualities, it may not be sufficient to pay such huge liability, should it occur. Tying up with critical key equipment suppliers and experienced contractors at pre-bid stage would be

In most of the projects, a large amount of equipment is procured from the international market. Hence, fluctuations in foreign currency can make a big dent on the project cost. Generally, if the project is given on a local currency, the foreign exchange variation is to the account of the project owner. However, if the contract price is on multiple currencies, then the risk on EPC contractor is negligible. Hedging can be one of the solutions to minimise this risk, both for project owner and the EPC contractor.

Cost escalation for materials and equipment This is another major risk area for EPC contractor. Generally, all EPC projects right from the qualification/pre-bid stage until the contract becomes effective take minimum five to six months. The cost of equipment and materials, which were sought to calculate the price may undergo fluctuation during this period. This fluctuation can make the project a profitable or loss-making deal, and it is not in the hands of project owner or the EPC contractor as it is driven by various socio-economic factors globally. It is, therefore, important to speed up the procedure of contracting and placing the order after award of contract so that the impact of fluctuation is minimal. At the end, either the project owner or the EPC contractor has to pay for it in the sense that if the price has gone down, the contractor will make profit but the money goes from the project owner, whereas if the prices shoot up, then the contractor has to pay the extra amount.

Risk emanating from the statutory clearances For an EPC contractor, obtaining timely approvals is of paramount importance. The whole project can be

PRACTICAL TIPS

held back for want of clearances such as environmental and other site-specific clearances, and this is largely dependent upon external authorities and agencies. If the project is in the category of â&#x20AC;&#x2DC;concessional projectsâ&#x20AC;&#x2122;, then there are further complications with regard to special approvals, project import approvals, compliance and reporting to the project monitoring authorities, agencies etc.

Technology-related risk For an EPC contractor, assuming that he is also providing technology as a part of EPC contract, the risk of liabilities emanating from proving the guarantee parameters is even high. The entire responsibility of proving the guarantee parameters lies with the EPC contractor irrespective of whether it is being backed-up by the licensor of technology. Even though the licensor is liable for process parameters, the liability of the licensor at best cannot exceed 100 per cent of the license fee, which is approximately one to three per cent of the total project cost. Whereas the EPC contractor is responsible and liable to the project owner for the total contract price irrespective of whether it is the fault of the EPC contractor or the fault of the licensor/vendor or its sub-contractors. The EPC contractor cannot play a larger role as far as the technology-related defects are concerned. It is, therefore, advisable for the EPC contractor not to venture into EPC contracting unless the technology is well-proven and the EPC contractor has some experience in engineering with such technologies.

Risk and delays arising from unforeseen circumstances The EPC contractor is also exposed to certain unforeseen circumstances such as inclement weather, accidents that are taking place due to mishandling; non-performance of the equipment due to manufacturing defects at the time of its testing followed by commissioning at site and other perils such as fire, earthquake, etc. These are obviously uncontrollable and difficult to manage during the implementation of a project.

Opportunities galore The various factors and challenges involved while undertaking a project indicates that a contractor is at a high risk throughout the execution of the project on EPC basis. The EPC contractor must have the capability of handling projects on zero-defect basis as the defects can emanate for reasons beyond oneâ&#x20AC;&#x2122;s control. K R Madan Mohan is the Senior General Manager & Head of Legal and Insurance at Uhde India Pvt Ltd. Email: madan.mohan@thyssenkrupp.com

January 2011 | Chemical World

INDUSTRY UPDATE

Addressing cost and productivity

Industrial gases hold the key It is a fact that every manufacturing plant requires a fine balance between productivity and operational cost so that the end-product remains competitive in the market. The usage of industrial gases in the manufacturing of steel, glass, or treatment of effluent, etc could help achieve this need. Moreover, strict environmental norms have infused growth in the industrial gases segment.

Praxairâ&#x20AC;&#x2122;s air separation unit at Durgapur Courtesy: Praxair India

Prasenjit Chakraborty

he increasing focus on environment has changed the modus operandi of many manufacturing plants worldwide. Chemicals, gases, etc which were once used randomly in manufacturing of certain products, have been either discarded or replaced with better products suitable for environment. In fact, environmental concern has provided further momentum for the industrial gases sector. Some of the applications wherein the increasing focus on environment has opened new vistas for industrial gases, is by way of usage in waste effluent and sewage treatment plants. Oxygen is used in such treatment for keeping the bacteria alive, thus preventing decay of organic matter, which pollutes the water and the atmosphere. The enhanced usage of carbon dioxide in various applications

Chemical World | January 2011

such as welding, soft drinks, food freezing, etc is also beneficial to the environment, as otherwise it would be vented in the atmosphere as a pollutant. The scope of the usage of industrial gases is vast. â&#x20AC;&#x153;Perhaps, the biggest opportunity for calibration gases lies in the well-established chemical and rapidly growing automotive industries where new strict environmental standards comparable to European norms are being applied to analyse the gaseous effluents,â&#x20AC;? points out Neil S Amber, Director, Universal Industrial Gases Inc, USA.

Enhancing cost-effectiveness and productivity Besides addressing environment related issues, industrial gases have proved to be cost-effective and instrumental in augmenting production in many cases. There are number of cases,

INDUSTRY UPDATE

where by-products are incinerated; these can be recovered and recycled. A case in point is the production of hydrogen in many alkali metal and allied industries. As there is no ready customer for this hydrogen nearby, where pipelines can be built, most of this hydrogen is to be incinerated. “A recovery and distribution system can lead to greater revenue from this valuable by-product,” says Amber. A good example of the improvement in productivity is the glass industry. Oxygen enrichment can increase the capacity of glass melting furnaces without any significant additional CAPEX. The same goes for many other industries including scrap melting and recycling, where heat and high temperature are instrumental in boosting productivity of refractory furnaces. Many small steel enterprises have successfully improved their yields and productivity through oxygen enrichment. Plants with large furnaces utilise oxygen lancing to achieve optimum combustion, and thereby utilise the entire fuel and reacting materials. “As in steel plants, the increase in temperature of the furnace by oxygen lancing reduces the cycle time of making steel. Similar is the case for the glass industry. This not only improves productivity but also brings

Neil S Amber Director, Universal Industrial Gases Inc, USA

The biggest opportunity for calibration gases lies in the wellestablished chemical and rapidly growing automotive industries where new strict environmental standards comparable to European norms are being applied to analyse the gaseous effluents. A recovery and distribution system can lead to greater revenue from valuable by-products.

Chemical World | January 2011

down the operational costs,” says R P Khator, Advisor, Bombay Oxygen Corporation Ltd. The other example is the usage of 100 per cent oxygen in certain chemical reactions and fermentation processes. In normal cases, air-based processes are utilised, as air contains around 78 per cent nitrogen. During any increase in production, the manufacturer will have to increase the blower capacity, which could become a limitation in the reactor. “A better alternative is to enrich or directly inject oxygen to increase the capacity of the reactor. This concept can be beneficial even for reactors conducting organic reactions or in case of certain fermentation processes,” opines Asit Gangopadhyay, Managing Director, Praxair India Pvt Ltd. The oxygen intensification increases its saturation concentration in the reactor, thereby cutting down the additional air requirement and associated power necessity to introduce equivalent air. Looking at the scope of industrial gases, various companies have introduced innovative products. A case in point is Praxair’s Oxyfuel Combustion technology which offers various benefits to the users. Gangopadhya claims, “Customers’ switching from air-fired systems to oxy-fuel systems can save up to 50 per cent fuel. Besides, up to 90 per cent reduction in NOx emissions can be achieved by eliminating the wasteful heating of nitrogen in ambient air. In addition, oxy-fuel technology provides the option to increase furnace capacity on demand up to 10 per cent or more.” Similarly, Linde’s REBOX technology for metal sector, can increase productivity by 15 20 per cent that too without any modification to the existing furnace, whereas for the glass segment, productivity increase of 10 per cent could be achieved.

Asit Gangopadhyay Managing Director, Praxair India Pvt Ltd

Customers’ switching from air-fired systems to oxy-fuel systems can save up to 50 per cent fuel. Besides, up to 90 per cent reduction in NOx emissions can be achieved by eliminating the wasteful heating of nitrogen in ambient air. In addition, oxy-fuel technology provides the capability to increase furnace capacity on demand up to 10 per cent or more. Sectors driving the growth The growth of industrial gases is directly proportional to the growth of the manufacturing sector that needs industrial gases to carry out their operations. Looking at the growth of the manufacturing sector vis-à-vis gas requirement, it seems that steel and glass will drive the demand for growth of the gas industry. “New technologies used in manufacturing steel and glass extensively utilise industrial gases, including oxygen, nitrogen, argon, etc,” points out Khator. In the words of Arnab Das, General Manager, Sales, (Packaged Gases), BOC India Ltd, “Manufacturing sector is one of the key growth drivers of Indian economy. Its growth is largely driven by steel, automotive, infrastructure, petrochemicals and energy. While it is difficult to single out a specific sector that will fuel maximum growth for industrial gases steel, glass, petrochemicals are generally large consumers of industrial gases.” However, a closer look says that the rate of growth will depend on the regulatory requirements and/or the commitment to energy intensity improvements. “The pressure to reduce harmful emissions linked to climate change and high-energy prices will be fuelling the demand for technologies that produce

INDUSTRY UPDATE

cleaner fuels and increase energy efficiency,” opines Gangopadhyay.

On technology front With regard to the technology for manufacturing gases, India is still importing large and medium capacity cryogenic oxygen tonnage plants ranging from 100 TPD onwards, as indigenous technology has not been fully developed. Some manufacturers are supplying highcapacity plants with most of the important components being imported such as compressors, aluminium exchangers, expansion turbines, cryogenic pumps, etc. “This technology could not be developed indigenously due to lack of demand of such plants and also because they are highly capital intensive,” points out Khator. However, globalisation and open markets have led to increased demand for industrial gases. “Taking this into account, we should invite collaborations from developed countries for setting up plants for manufacturing major components of large and medium capacity tonnage plants, which in turn can be exported,” Khator asserts. However, when it comes to small capacity plants of 6-10 TPD, India has developed the latest generation technology. Many such oxygen plants are already installed in different parts of the country, and are also being exported to various developing countries. These plants have low power consumption, and hence the cost of production of gases in these plants is quite economical. With regard to non-cryogenic plants, India has a number of Pressure Swing Adsorption (PSA) plants of various capacities, which are being manufactured indigenously. Amber strongly believes that today, with the influx of multinationals, India has access to the latest technologies in industrial gas applications. “Perhaps the single-most deficiency may be in how we handle cylinders in small to medium enterprises, and the safety aspects related to accidental releases of high-pressure gases in crowded places,” he says. More stringent execution of safety norms across various industries will lead to additional investments in modern technology and equipment that can substantially modify how to store, distribute and utilise industrial gases in India. Two factors will drive the growth of industrial gases - one is rapid growth of the manufacturing sector in India; and the other is increase in production that too with reduced operational cost. In a short span of time, the globalisation factor has brought in many significant changes in terms of technology, value addition, new product development, etc in many sectors. One has already seen a few modifications in industrial gas sector and more changes are in the pipeline.

January 2011 | Chemical World

MARKET SCOPE

Compressed gases

What ails the industry? To ensure unabated growth of the industrial gases sector, it is imperative to look at issues pertaining to logistics, skilled manpower, uninterrupted power supply, etc. Demand alone cannot drive the growth. Hence, it is time to take the next step forward.

BOC’s product distribution fleet Courtesy: BOC

Prasenjit Chakraborty

he growth of industrial gases segment is highly dependent on factors like logistics, skilled manpower, safety, etc. Among these, logistics seems to be the most critical issue that needs to be addressed on priority basis. One of the options when it comes to efficient application of gases, is to set up captive plants for the end-use; and the second option is through long distance pipelines, as this would be highly capital-intensive. Many industry players strongly feel that there is a huge need to improve road infrastructure. “We need roads that are safer and driver-friendly with better access to emergency services,” says Asit Gangopadhyay, Managing Director, Praxair India Pvt Ltd. He further adds, “With the improving road conditions, Praxair is continuously bringing in large-sized fleet of tankers, which are used to transport cryogenic gases over long distances at optimum costs.” Also, rail infrastructure could be upgraded to transport cryogenic liquids. This could be possible with an effective government and private-partnership programme. According to Neil S Amber, Director Universal Industrial Gases Inc, USA, there are a couple of factors responsible for the present plight. “The factors related to lack of adequate

Chemical World | January 2011

infrastructure, roads, and clearances between industrial units result in extremely high mean time when it comes to delivering from the source to storage tanks leading to an indirect tax on asset utilisation,” he points out.

Logistics scenario Industrial gases produced are either actively used or transported through pipelines to other industries. They are also bottled in high pressure cylinder banks & tonners and transported from one place to other for process use. “There are not much logistics-related issues when it comes to transportation through pipelines, if gas is available at source. For example, natural gas is supplied through pipelines by Oil & Natural Gas Corporation Ltd (ONGC), Gujarat Alkalies Chemicals Ltd (GACL), etc, for making fertilisers, steam & power generation and other process use. Pricing poses a problem in case of short supply,” says Syamal De, GM-Technology, Projects & Operation, Aromatics Division, Atul Ltd. Natural gas price has almost doubled in the last five to six years. This is creating a huge pressure on the ancillary industries. Natural gas is used for domestic purposes as well as in automobiles. Some suppliers provide it through pipelines, while some supply through pressure cylinder banks. Other industrial gases like hydrogen,

MARKET SCOPE

chlorine, sulphur dioxide, cryogenic gases, ethylene oxide, etc, are bottled in suitable containers and transported by road. “There are safety concerns while transporting these chemicals due to infrastructure bottlenecks. Due to this, it is imperative to have periodic checking of the containers in which gases are transported. In developed countries like the US & Europe, these chemicals are transported using bulk & specially designed containers (~ 20 MT),” points out De.

Dearth of skilled manpower Besides logistics, dearth of skilled manpower is affecting the industrial gases sector. Currently, there are certain engineering institutes in the country that are conducting courses in cryogenic technology at post-graduation level. However, the industrial gases sector strongly feels that the course should be conducted at graduate level. Besides, it is imperative to develop suitable technical institutes for training the operators with the required technical knowledge for running such plants. “Young graduate engineers should be selected through campus recruitment, and given adequate onsite training. Continuous manpower development activities should be carried out,” feels R P Khator, Advisor, Bombay Oxygen Corporation Ltd.

Syamal De GM-Technology, Projects & Operation, Aromatics Division, Atul Ltd

There are safety concerns while transporting these chemicals due to infrastructure bottlenecks. So, it is imperative to have periodic checking of the containers in which gases are transported. In developed countries, these chemicals are transported using bulk & specially designed containers.

Elaborating further on this, Gangopadhyay emphasises on three points to overcome the manpowerrelated issues that include internal skilled resources, enriching skill base, and retaining talent. “We constantly work on training our people in building their skillsets. Our training modules enable our team to adopt global best practices in safety and reliability. Apart from regular training sessions, ongoing knowledge-sharing programmes enable our staff to be upfront on the latest technologies,” he claims. However, Amber is not of the same viewpoint. He believes that unlike other industries, the industrial gases sector so far has not faced problems with respect to skilled manpower. When asked about the reasons for the same, he replies, “Skilled manpower is definitely in short supply in every segment. So far, the industrial gas sector has not faced acute shortage of skilled employees as many of them are returning from the Middle East to their home country. Opportunity to work in India is becoming just as attractive as anywhere else.”

Miscellaneous factors Rising cost of power is also detrimental to the growth of the sector. It has had an adverse effect on all gas producers irrespective of their size and volumes. Added to this, is the lack of continuous supply of power. Hence, an assured and concessional supply of power should be extended to the gas industry. “Further, the gas industry should be treated as an important industry and no power restriction should be imposed,” says Khator. Another key focus area for the gas industry must be on safety, health and environment (SHE). The industry not only needs to continuously improve its work practices to achieve a worldclass SHE performance level, but also needs to help vendors and customers by transferring knowledge and skill regarding safe & environment-friendly

R P Khator Advisor, Bombay Oxygen Corporation Ltd

Young graduate engineers should be selected through campus recruitment, and given adequate onsite training. Continuous manpower development activities should be carried out. Also, the gas industry should be treated as an important industry and no power restriction should be imposed. usage of gases in their value stream, besides focussing on reduction of carbon footprint in its area of operations. “In this direction, active government participation and policymaking are crucial for implementation of safe practices in the gas industry,” opines Gangopadhyay. Community development is another area of focus for the industry, where it could contribute significantly towards uplifting communities around their workplaces. This can be done not just by donating funds but also by sharing knowledge in safety and environment protection and supporting them to build a sustainable tomorrow. When it comes to policy matters, movable assets such as transport & storage tanks, and gas cylinders that are part of the supply system of the gas industry should be treated as part & parcel of the capital investment for the purpose of cenvat credit and depreciation.

Addressing the issues In view of all these, it is necessary to address the areas of concern to facilitate the growth of industrial gases sector. Demand alone cannot make any sector vibrant; it has to be complemented with other crucial factors too, be it logistics, safety concerns, and other infrastructural requirements.

January 2011 | Chemical World

ENERGY MANAGEMENT

Wireless trap monitoring system

Quintessential for energy conservation Unnoticed leaking or water-logging in a steam trap not only affects its own process vessel but also the entire production cycle. Hence, emphasis should be on proper selection and monitoring of trap in all steam consuming process industries. Wireless Trap Monitoring System (WTMS), an energy efficient product, can be used by plant mangers to maintain health of steam traps in all process industries.

Plant 2 Central Server

Plant 1

Co-ordinator

Router

Plant 4

Wireless Trap Handheld Communicator

Plant 3

Overview of WTMS Courtesy: Forbes Marshall

Sumit Hakhoo and Vinod Joshi

TMS is a network for monitoring the health of steam traps at dispersed locations in a plant. This product has applications in all process industries such as pharmaceuticals, paper, rubber, tyres, textile, etc, where steam is used for indirect heating.

Why WTMS? Problems associated with steam trap are: R A leaking steam trap results in direct steam loss R A water-logged steam trap results in process downtime and/or product/batch rejection Wireless system offers the solution. WTMS is a network for monitoring the health of steam traps at dispersed locations in a plant. It is a wireless network of steam traps used to: R Provide alarm when there is a steam leak in steam trap R Provide alarm when trap is water logged and not ejecting the condensate R Monitor the condensate temperature online to check the health status of the trap R Monitor and report overall plant status, steam loss, monetary loss, deviation from the benchmarks, etc via a centralised web based graphical interface R Analyse online data on the backend to intelligently generate the reports that enable the user to take decisions on existing plant condition

Chemical World | January 2011

WTMS does not need cabling to remote trap locations. Its centralised web-based graphical interface reduces operator intervention and makes data available on the computer network at any time and can be viewed remotely over the Internet too. It helps monitor and report the overall health of traps in a plant. It broadcasts an alarm when there is a steam leak in a trap or when the trap is water logging and not ejecting the condensate out. Its handheld communicator helps to configure, download & troubleshoot the network and application data. Above all, it has a short payback period and does not need any expensive software licences to operate.

What is WTMS? Being an energy saving product, WTMS enables the plant to record all possible data and to report overall trap performance online. Thus, it is an effective tool to exercise corrective measures and save millions of rupees & energy costs in steam trapping area. This system is based on the principles of wireless sensor networks, which involve sensors, routers and co-ordinators. This forms a cluster tree network of devices where the sensor is ‘child’ and the router or co-ordinator is a ‘parent’.

ENERGY MANAGEMENT

The sensor measures the steam temperature & conductivity and decides the trap fault based on the algorithms built in the sensor electronics. The temperature signal and alarm is sent by the radio signal of 2.4 GHz (ISM band), which is a free band available all over the world. The user can also set the desired channel (11-26) to nullify the interference with other devices, if any. This signal is received by routers (parent) and sent to the co-ordinator either by single or multiple hops. The co-ordinator is connected to the server machine, which does the further processing on the signal and updates the web pages, generates the health reports which can be sent directly to the plant engineers & managers by email. Steam loss calculated per trap, plant and department gives the accountability to the plant manager to maximise the energy efficiency in steam trap performance. Steam traps can also be monitored by application, type or pressure ratings, which help in ad hoc diagnosis of the problems in steam system. This system also generates recommendations in case of wrong application or type selection based on set steam pressure and faults occurred. Plant engineers can track the maintenance schedules for different traps based on application, pressure rating and trap type or model.

Steam trap monitoring system: A necessity In all steam consuming process industries; selection of correct type of trap, hooking up distribution system & process vessels with correct trapping methods and meticulous attention in procuring quality traps are few best plant-engineering practices. Even today, procuring quality trap is grossly overlooked in many process industries. It is important to assess many prioritised criteria; distinct manufacturing capabilities of suppliers, their technological advantages, R&D facilities with continual product development approach, service network with regular visits and being in close proximity with customers to meet & exceed their

core requirements. Omission of such procurement and vendor development process to buy quality traps, with only price as a criterion, adversely affects plant operating efficiency and boiler fuel bills, due to perennial malfunctioning of traps installed in steam and condensate system despite correct selection of traps based on application needs. It should clearly be understood that, it is not the ‘cost of trap’ that matters but cost of ‘leaking trap’ that matters the most, the

Some of the benefits of WTMS R Online monitoring of steam loss R Immediate action by end-user in

case of trap failure R Reduction in product rejections

and process downtime R Wireless network of traps avoids

cabling to remote trap locations R Alarming, benchmarking, data

R R

analysis, saving monetary loss and temperature trending Centralised web-based monitoring enables reduced operator intervention and data availability over the Internet any time Battery operated sensor; no need of an external power source, plus long battery life (4-5 year) Different analysis reports enable user to take decisions on plant maintenance Short payback period No expensive software licence required

latter would even lead to 10-15 per cent ‘excess’ fuel bill in process industries, if trap population is huge. Monitoring of traps is inevitable in process industries because: R An un-noticed leaking trap leads to tremendous steam loss. Based on Forbes Marshall Energy Audit of process plants across the country, out of over 85,000 steam traps in oil and petrochemical industries, at least a third of population, needs attention & health maintenance to arrest steam

loss! Out of over 1,00,000 traps in other process industries, a third of them need attention and health maintenance to prevent steam loss! It is also worth noting that, many a thousands of process plants are yet to be explored for right traps and trapping practices! R A water logging trap leads to poor product or batch quality with increased batch time as well. The same often leads to rejection of several batch products and also leads to process down-time due to poor heat transfer efficiency since such water logging is a big barrier for effective heat transfer to utilise latent heat absorption R A leaking or a water logging trap not only hinders its own process vessel (or its own distribution line) but also affects other process vessels or process area (or other distribution lines) by generating pressure imbalances in piping systems, since most process plants in today’s energy conserving era are of (and must be of) close loop system. Such pressure imbalances, besides causing primary problems, also causes disruption of piping system due to water hammering and related dangers, challenging safety features of entire plant It is evident that, continuous on line monitoring of traps remains an absolute essentiality and irresistible need. Hence process plant management seldom can afford to neglect such trap monitoring system, if one is inclined to implement highest order of energy conservation measures, not only in process areas, but also in condensate recovery and other distribution areas. Sumit Hakhoo is the Marketing Manager at Forbes Marshall, which offers wireless trap monitoring system through its group company, Spirax Marshall. Vinod Joshi is the Product Manager – Development at Forbes Marshall. Email: response@forbesmarshall.com

January 2011 | Chemical World

CORROSION CONTROL

Corrosion protection

High-performance coatings to prevail To retain the underwater coating on the substrate, choosing a right amine is not enough. For this, lot of additional substances are need to be added. A good combination of fillers, surfactants, bond strengtheners, etc is required to make such coating stay on substrate under water. A specific formulation also needs to be designed.

Prof A S Khanna

high-performance coating is applicable to resist the specific corrosion issue of a component. Take the case of splash zone of a steel pile, which supports the offshore structure. It usually has five sections (Figure 1), mud zone, immersed zone (silent corrosion zone), submerged zone or tidal zone, splash zone and atmospheric zone. The mud zone, where the pile is dug to atleast a few metre into the earth to give support to the structure does not have general corrosion, but can have bacterial corrosion due to the presence of SRB bacteria, which act in the absence of oxygen. The next section is the silent zone, which does not require any corrosion protection, as the seawater in this zone is devoid of oxygen. The other three sections are submerged zone â&#x20AC;&#x201C; 1-2 m below the sea level. This section corrodes and also has a lot of barnacles and seaweeds sticking to the pile surface, with a possibility of causing bio-corrosion. The section, just above the submerged zone, is called splash zone, which is considered to be the most corrosive in nature.

Chemical World | January 2011

The heavy corrosion is due to several factors such as: R Dry and wet spells, due to high & low tides, which result in heavy salt deposition on the pile surface. This can be one of the reasons for heavy corrosion rate of this section R Erosion of the section, mainly due to the force of high tides R Degradation of the coating due to UV radiation of sunlight

Coating for protection A conventional three-coat coating consisting of primer, intermediate coat and a topcoat cannot give a lasting protection. A conventional epoxy base coating requires a clean shot-blasted surface, covered by a primer, in most cases, by a zinc base primer, followed by an intermediate coat of epoxy and a topcoat of polyurethane (PU). It is to be noted that the splash zone remains dry only during the low-tide conditions, which in many cases cannot be more than 1012 hr in a day. While application, it would take perhaps more than 10-12 hr to clean the splash zone area by shot blasting, followed by a primer

CORROSION CONTROL

Zone 1: Atmospheric corrosion Zone 2: Splash zone above high tide

Mean high tide

Zone 3: Tidal Zone 4: Continuously submerged

Mean low tide

Mud line Zone 5: Subsoil

Relative loss in metal thickness

Figure 1: Various sections of the offshore steel pile, indicating the corresponding corrosion rates in terms of thickness of metal loss

to make it atleast hard dry for the application of intermediate epoxy coat. However, because of the high tide, the whole primer layered surface would become wet with seawater and remain so till the low tide arrives the next morning. As per rule, the

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seawater-covered surface needs to be cleaned with normal water, followed by drying and coating with intermediate epoxy coating. This coating usually takes about 2-4 hours to hard dry. Further, many general purpose epoxies have a strong tendency to pick up moisture and become deteriorated. Further, by the time the epoxy completely dries, high-tide conditions prevail, and the epoxy-coated surface is covered with seawater, thus surface contamination by chlorides from salt seawater takes place again. The next day, this surface needs to be washed thoroughly by normal water, followed by drying and application of top PU coat. Following are the main drawbacks of this coating, and as a result of which its life cannot be more than a few days to a few months: R Three-coat system is not suitable for such applications mainly because of

A n i nv

long drying times of conventional coatings, thereby extending beyond the dry time between low and high tide R Pure epoxy coatings are not good for offshore environments as they entrap moisture from the environment when relative humidity is more than 45 R Top-coat of PU is applied only to take care of the deterioration of epoxy due to sunlight. The PU layer is usually only 50 micron, which invariably vanishes due to erosion during high tides Thus, in such specific applications of splash zone, a coating must have the following properties: R Preferably a single coat application R Can give a thick coating in one coat R Very quick drying time R Highly corrosion- and erosionresistance R Not affected by UV light R Can be applied in very high humid environment such as offshore

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January 2011 | Chemical World

CORROSION CONTROL

High performance coating offers solution To make a coating that can fulfill these requirements, a specific formulation needs to be designed. Such coatings are designated as high-performance coating system for splash zone. The strategy required to make such a coating is: R To get a coating that can be applied in one coat to high thickness, one has to choose either a High Build (HB) coating or a solventless coating, which has more solid volume, and hence high Dry Film Thickness (DFT) per coat. Further, such a coating, when applied using a high-pressure airless gun, can give a thickness ranging from 500-1,500 micron per coat R Since the coating required should be applied at high relative humidity, it must be stable and should not entrap moisture. Alternative coatings, than epoxy, are required. It is known that

polyester coatings are pretty stable at high RH and they also have fast curing properties. Further, these can also be combined with other functional groups that make them stable to UV light R The next property required is erosion- & corrosion- resistance. As it is known that the second particle in polymer matrix provides strength to the polymer, which helps in enhancing its durability by increasing the permeabilityresistance, and also enhances the erosion-resistance. This can be achieved in many ways. But, addition of glass flakes helps achieve this. Glassflakes with a good aspect ratio (width to thickness) help in achieving these properties (Figure 2) A commercially available system for the splash zone of ONGC platforms of Bombay High consists of isopthallicpolyester glassflake coating. More than 72 platforms have already been coated with this system. For 1,000 micron of coating, applied using airless spray, designed for 10-year life, has shown good performance till date.

Underwater coatings

Figure 2: A glassflake reinforced coating, showing how the durability of the coating is raised by increasing the torturous path of the moisture penetration

H H N H

H C H

C H H

H N O C C H H H H

The diamineâ&#x20AC;&#x2122;s electrons attack the carbon atom next to the epoxide oxygen, giving a negative charge on the oxygen, and a positive charge on the nitrogen Figure 3: Reaction of amines with epoxy systems by transfer of electron

Chemical World | January 2011

Another example of high-performance coating is the one for submerged zone, which can be applied underwater by divers. How is it possible to apply a coating surrounded by water? The principle of an underwater coating is similar to which is applied above water (normal atmosphere) in air. Like in air, when a paint coating is applied, the coating replaces the air on the substrate by a layer of paint. For underwater coatings, the paint coating needs to replace the water instead of air. This is achieved by making the coating repellent to water. In chemistry, one takes advantage of extra pair of electrons on various molecules. Water has an extra lone pair of electrons on oxygen atom. In the same way, the hardener (usually an amine), is used for two component

Table 1: Properties & value of coating (Developed by IIT Bombay) Property Value 1h Pot life Bond strength 4 MPa Imapct 27 J Hardness 6H Curing time 10-12 hour

epoxy paints, also has a solitary pair of electron on nitrogen. Thus, by creating more lone pair of electrons on nitrogen by taking diamines or multi-amine monomers, extra electron pair on the epoxy amine coating can be created. When such a coating is applied under water, it repels water, and thus the coating applied on substrate under water remains stuck on the substrate (Figure 3). The main properties required for underwater coating to stay on substrate are: low curing time, good bond strength, high erosion and abrasion. IIT - Bombay has developed underwater coating in its laboratory using bisphenol F epoxy and cyclohexylamine hardener to which a host of fillers and additives such as glassflakes were added. The coating formed had good properties (Table 1), and a good drying time. In the same way, there are a variety of high-performance coatings, which are developed for specific functional applications. Coatings for insulations, coatings for high-temperature resistance coatings, which can retard fire, and so on so forth. Prof A S Khanna is with the Corrosion Science & Engineering Dept of IITBombay. In his 26 years of experience, he has published more than 150 papers and written a book on corrosion. Prof Khanna is a Fellow of Humbodt Foundation, Bonn and Royal Norwegian Society for Science & Technology. He has been the Chairman of NACE - Asia Pacific Region, and at present is the Chairman of SSPC India Chapter. Email: khanna@met.iitb.ac.in

MANAGEMENT MANTRAS

Maintaining high service standard

A way to customer satisfaction Setting and maintaining high service standards are key to customer satisfaction and delight. They are also useful tools that help an organisation maintain a delicate balance between taking care of existing customers and pitching for potential clients.

Suresh Lulla

ustomer service standards affect us all, not only as professionals but also as consumers. While all companies usually base their standards on an industry benchmark, and rightly so, these should be seen as only the start of a cohesive and successful service plan. For the complete picture, these standards should be fine-tuned and adjusted to the specific needs of that organisation.

Do we need standards? Each industry has its own set of service standards in addition to the industry benchmarks, but it is essential for an organisation to mould its service standards around its own customers, so that it can maximise its goals effectively. This is especially true at the more basic level of day-to-day operations, where several companies (often competing) will follow the same basic industry standards. As a set of standards is adopted and followed by many organisations, they tend to become canonised as the industry benchmarks that others will emulate. This has been the case in several companies such as GE and IBM, which have not only set benchmarks for other companies to follow, but have also increased the visibility and the importance of such standards. For example, Virgin Atlantic, The Four Seasons, and Nordstrom work by their customer loyalty principle and are

constantly looking for ways to offer superior service. These companies have elevated their service standards to the point that only these alone create substantial word-of-mouth publicity for the organisations and their services.

After-sales service: The crucial element An oft-repeated statement that bears mentioning is that after-sales service is one of the most important aspects of customer service. Technically, when the after sales-service component comes into effect, there are a series of procedures that should be followed for effective customer service. Organisations, especially when operating in nascent or emerging markets, tend to overlook this, favouring the quest for new customers at any and every cost. Companies that have stood up to the test of time and a changing competitive landscape understand that it is vital to have documented procedures that are used for the entire chain, right from performing, verifying and finally reporting the service procedure. After-sales service is crucial for a company as it establishes its service beyond that for just making a sale, and a job well done here will ensure the company not just one life-long customer but several, by sheer word of mouth.

Identifying a theme For many organisations, identifying the key customer feedback from a variety of sources is

January 2011 | Chemical World

MANAGEMENT MANTRAS

a big challenge. For one, the data is unwieldy. Second, it often gets lost in the mixed bag of information that is constantly flowing in. Besides customer feedback or complaint forms, there are a host of other sources from where an organisation must deal with consumer input, including feedback from employees, call centres, the shop floor, management reviews, channel partners, factual data from point-of-sale, sales figures, surveys, product returns, blogs and much more. Reviewing all the collected data, noting the common trend to create an overall theme & story, and identifying key issues is a huge task indeed.

Connecting the dots between feedback and loyalty Where a lot of organisations go wrong is in not responding quickly enough to customer complaints. A company that wants to be taken seriously by its consumers needs to respond to their issues with speed to ensure that they will continue to remain customers. Feedback from consumers can be both positive and negative, so it is important for employees to respond to both. Research shows that consumers who had their complaints addressed were more than likely to recommend the organisation to their peers. In several studies, it has been ascertained that the speed with which an organisation responds to feedback from its customers is directly related to how loyal its customers are.

Handling feedback There are several industry standards for response time for customer feedback, but each organisation must fine-tune it to its own needs and capabilities. The sales team must be geared up to handle such feedback quickly and effectively. Systems such as first acknowledging receiving the feedback and informing customers on how it will be handled is the usual practice in many organisations. In effect, how an organisation responds in this crucial time, sets the tone for the follow up and is the start

Chemical World | January 2011

of the contact with a customer that can create a lifelong loyal customer or one that never comes in contact with the organisation again.

Tip of the iceberg Proactive organisations look to receiving any kind of feedback from customers as a way to better understand them, especially negative feedback. According to research, only a few consumers actually follow through with their complaints, but those who do will usually have some valid points that represent the thoughts of many others who did not complain to avoid confrontation. This opportunity must be taken to interact

Tips to retain customers Inculcate a harmonious customer relationship with these five steps: R Acknowledge customers while

they are waiting for service R

Always make eye contact, most importantly at the beginning and at the end of dealing with a customer

It is all right to admit that one does not know something, just as long as an effort is made to find out about it

Call the customer back when promised, even if it is only to say that one will need more time

Follow the old Chinese proverb that sees an opportunity in every crisis

with consumers and understand their point of view, since most complaints are usually to do with failed expectations. A complaint should be seen as a good way to assess how well the organisation is meeting customer’s needs. Customers are changing their expectations with regard to service and standards. According to the March 2008 ‘Boiling Point’ study conducted by The Mental Health Foundation, 64 per cent of respondents felt that consumers are getting angrier and those who work in the customer service area are aware of this shift. As a society, consumers are becoming more demanding and want

instant service & response, just as it works on email, telephone and ‘ondemand’ TV programmes.

Tying customer service to customer loyalty Improving customer service and increasing customer loyalty need to be twin goals of every organisation. Dr W Edwards Deming, one of the leading statisticians in the US, created a system that has led several companies such as Fuji, Toyota, Honda and Sony to high levels of service excellence by following some simple rules, which are part of his 14-point system of excellence to transform business effectiveness. R Create a sense of purpose to improve service R Constantly improve the system to improve quality and increase productivity R Increase participation for on-the-job training modules R Inculcate leaders who will inspire others R Institute programmes of self-learning and self-improvement

Focussing on existing customers Customer service is one of the most important matters an organisation can focus on, even more than developing a new client. Some studies indicate that it costs a company five times more to replace a customer than to simply retain its original customer. Long-term clients and customers are also likely to spend more than new ones, so they must be retained at all costs. It is important to remember that how a customer comprehends service rendered is greatly dependent on their mood, or, as Jan Carlson of Scandinavian Airlines coined the phrase, ‘moments of truth’. This is what occurs when there is a lasting interaction between a customer and service personnel, which can leave either a positive or a negative impression, and these are the keys to delivering and maintaining high levels of service standards.

MANAGEMENT MANTRAS

View from the industry Here are a few examples that set the standards in the industry: Toyota: With the launch of the Lexus brand in the US, Toyota took its after-sales service level to new highs. The company has always strived for excellence, and followed this ‘pursuit of the essence of luxury’ to the hilt. Creating an after-sales service was an extension of this quest for brilliance and for continuing to value their customers. Waiting areas in Lexus service departments are plush, with amenities such as an indoor putting green, a refreshment bar, Internet access and an accessories store. Most dealerships also provide complimentary loaner cars as well as free car washes, and some even have designer boutiques and cafés. The company also offers the usage of premier parking lots at entertainment and sports events as well as shopping malls that are reserved only for Lexus owners. The emphasis on service excellence is so high that employees are

sent to service-oriented companies such as Nordstrom and Ritz-Carlton hotels as part of their training. HDFC: The housing loan market in India has been completely altered by the service initiatives of HDFC. By making their service completely free, HDFC emphasised on sharing their professional knowledge with their customers, on building approvals, legal documentation, financial advice and so on. By offering a ‘door step’ service, HDFC was able to tap into a huge gap in the market and service these customers who might not be able to visit the HDFC Office. Beyond just financing, HDFC can also help in finding both commercial and residential properties for sale and lease. The company has also followed through on its commitment to cut down on the red tape associated with home loans and has set up a decentralised process of disbursing funds through its branches. In essence, HDFC completely changed the way home loans were processed, making

it significantly easier for consumers to buy their dream home.

Conclusion Customer service is no longer an intangible, nebulous activity. It is how the majority of customers perceive an organisation, almost like the brand image of a company, what they remember of it, what they tell their peers and what they carry away from the store. It also is the acid test that determines whether they will remain loyal customers or switch to another company. Suresh Lulla is the Managing Director of Qimpro Consultants Pvt Ltd, Founder of the BestPrax Club, and Chairman of the IMC Quality Awards Committee. In 2005, he was awarded the distinguished Alumnus Award by IIT - Bombay, in recognition of his outstanding achievements in quality management consultancy. Email: consultancy@qimpro.com

January 2011 | Chemical World

PREVIEW

Advancing towards seamless

Material handling Mumbai | 17-19 Feb, 2011

Material handling industry in India is growing at a steady pace along with stable manufacturing intensification. The advancements in this industry are moving in line with its growth. But with the progress, there is a need to create awareness about innovative solutions and technologies available. In this regard, HiTech Material Handling Show promises to serve as a fertile ground for the entire industry to converge & display technology, innovation and futuristic material handling solutions.

Shibani Gharat

ndia is moving steadily on a smooth growth trajectory. This has shifted the focus from cost-cutting to expanding capacities in the market which directly results into more factories and warehouses. In this era, material handling is an inevitable phenomenon for any manufacturing unit. Material Handling Equipment (MHE) may not directly contribute towards production of goods but they bring about efficiency in handling, transport and storage of goods. In fact, the MHE industry just about harmonises the entire process in a manufacturing set up by ensuring smooth and efficient distribution of goods. “Any manufacturing unit, in any sector, requires equipment to handle materials in its factory. Different verticals need different solutions to cater to their MHE needs. Chemical, pharmaceutical, construction, energy, food & beverage, metalworking, plastics, aerospace manufacturing, automotive industries – all are dependent on the MHE industry,” says Tushar Mehendale, MD, ElectroMech.

Technological advancements Today, the MHE industry offers a plethora of products to various industry verticals as per the needs of a particular industry. There have been several advancements in the industry to cater to the customised requirements of various industry

Chemical World | January 2011

verticals. There are specialised equipment available for movement, storage, control and protection of materials, goods and products throughout the process of manufacturing, distribution, consumption and disposal. “Material handling, with each passing day, is becoming more complex and novel. The present market offers a variety of equipment and systems that help in moving materials in and out of a warehouse. The equipment is selected based on the type of products to be moved and the volume to be handled,” asserts Sudhanva Jategaonkar, Associate Vice President – B2B Publishing, Infomedia18.

Right equipment drives growth A combination of appropriate and well-organised material handling is considered a key to determining the economies of operation. The correct selection would not only bring down the overall cost of operations, but also enhance the safety and comfort of operators, resulting in less fatigue and consequently more productivity. “Recently, we have seen the need for more robust equipment with high demand on uptime and capabilities. The equipment manufacturing industry has met these expectations with technologically advanced products, marking a shift towards more versatile and capable equipment,” notes Rajesh Sharma, VP & Head – Marketing, Escorts Construction Equipment (ECEL).

With the arrival of a variety of new, innovative and advanced products in the market, the problem of creating awareness among the users about the same, also emerges. In view of this, Network18 Group is organising HiTech Material Handling Show in February 2011. The event aims to provide a conducive platform for showcasing best-in-class solutions that aid in attaining manufacturing efficiency. HiTech Material Handling Show will be held concurrently with HiTech Automation, under the umbrella show HiTech Manufacturing. Elaborating on the role of this show in creating awareness in the MHE industry, Jategaonkar says, “There are various products that the MHE industry offers, but the manufacturing industry is unaware of. Thus, there is a need to create awareness about these products. An ideal platform to achieve this is the futuristic show – HiTech Material Handling. At the show, latest manufacturing, distribution and supply chain solutions that will help the entire industry stay afloat will be showcased”. From forklift trucks to automated logistics systems, HiTech Material Handling will showcase innovative and cost-effective solutions in racking & shelving, storage solutions, pallets and palletising equipment, third party logistics, transport & distribution, handling system design and warehousing.

EVENTS CALENDAR

National MUMBAI Concurrent Shows

CHENNAI Tamil Nadu Mar 11-13, 2011 Chennai Trade Centre

India’s premier industrial trade fair on products and technologies related to Machine Tools, Hydraulics & Pneumactics, Process Machinery & Equipment, Automation Instrumentation, Packaging & Auxiliaries, IT Products, Electrical & Electronics, Material Handling and Safety Equipment.

For details Infomedia 18 Ltd, Ruby House, 1st Floor, J K Sawant Marg, Dadar (W), Mumbai 400 028. Tel: 022 3003 4651 Fax: 022 3003 4499 • Email: engexpo@infomedia18.in

PU Tech 2011 A polyurethane (PU) exhibition & conference; March 09-11, 2011; at India Expo Centre - Expo XXI, Noida For details contact: Unitech Exhibitions Pvt Ltd 92/3, 2nd Main Road Gandhi Nagar, Adyar, Chennai 600 020 Tel: 044-2440 5493 Fax: 044-2440 5492 Email: unitech@hathway.com

Chemspec India 2011 An exhibition for performance & fine chemicals and organic intermediates; April 14-15, 2011, Bombay Exhibition Centre, Mumbai For details contact: DMG World Media Ltd 301B Court Greens The Laburnum, Sushant Lok Gurgaon 122 002, Haryana Mob: 098116 14144 Email: info@ca.dmgworldmedia.com

PVC 2011 The event will display the latest innovations in pumps, valves and compressors (PVC) for various industries; May 06-08, 2011; at Bombay Exhibition Centre, Mumbai For details contact: Conventions & Fairs (India) Pvt Ltd E 519, Floral Deck Plaza Central MIDC Road Opp SEEPZ, Andheri (East) Mumbai 400 093

Chemical World | January 2011

Tel: 022-2839 8000, Fax: 022-2839 0502 Email: conventions@mtnl.net.in

Maharashtra February 17-19, 2011 Bombay Exhibition Centre

One of the largest advanced design and manufacturing events in India featuring Machine Tools, Hydraulics & Pneumactics, Process Machinery & Equipment, Automation & Instrumentation, Packaging & Auxiliaries, IT Products, Electrical & Electronics, Material Handling and Safety Equipment.

For details Infomedia 18 Ltd, Ruby House, 1st Floor, J K Sawant Marg, Dadar (W), Mumbai 400 028. Tel: 022 3003 4650 Fax: 022 3003 4499 • Email: hitech@infomedia18.in

IORS 2011 Symposium and international exhibition for oil & gas industry; September 0809, 2011; at Taj Lands End, Mumbai For details contact: Oil Asia Publications Pvt Ltd 530, Laxmi Plaza 5th Floor, Laxmi Industrial Estate New Link Road, Andheri (West) Mumbai 400 053 Tel: 022-4050 4900, Fax: 022-2636 7676 Email: oilasia@vsnl.com

Analytica-Anacon 2011 International trade fair and conference for analytical instrumentation, laboratory technology and services; October 12-14, 2011; in Mumbai For details contact: Imag Am Messesee 2 81829 Munich, Germany Tel: +49 (0) 89 949 22 0 Fax: +49 (0) 89 949 22 350 Email: info@imag.de

IPVS 2011 Industrial trade fair for pumps, valves and systems; November 11-13, 2011; at the Gujarat University Hall, Ahmedabad, Gujarat For details contact: Orbitz Exhibitions Pvt Ltd

101, Navyug Industrial Estate Sewri (W), Mumbai 400 015 Tel: 022-2410 2801/02 Fax: 022-2410 2805 Email: info@ipvs.in

SUGARASIA 2011 Exhibition showcasing cane sugar and downstream products such as distillation of molasses & ethanol, blending and power generation; November 21-25, 2011; at Pragati Maidan, New Delhi For details contact: Nexgen Exhibitions Pvt Ltd 1201 Pragati Tower, 26 Rajendra Place New Delhi 110 008 Tel: 011-4153 6990, Fax: 011-4153 6991 Email: nexgenservices@gmail.com

CPhI INDIA 2011 International exhibition on pharmaceutical ingredients and intermediates; December 01-03, 2011; at NSE Exhibition Complex, Mumbai For details contact: CMP India (UBM India Pvt Ltd) Sagar Tech Plaza A, 615-617, 6th Floor SakiNaka Junction, Andheri-Kurla Road Andheri (E), Mumbai 400 072 Tel: 022-6612 2600, Fax: 022-6612 2626 Email: deepalim@ubmindia.com

EVENTS CALENDAR

International Iran Chem Tech 2011

Chembio Finland 2011

The expo is devoted to materials and equipment & machinery for the chemical industry; February 07-10, 2011; at Tehran Permanent Fairground, Tehran

An event showcasing latest trends in laboratory products, biotechnology and chemical industry; March 22-24, 2011; at Helsinki Fair Centre, Finland

For details contact: Gohargodaz No.28 Sharifi alley North Razan st. Mirdamad blvd, Tehran 19119, Iran Tel: +98 21 22 22 52 05/22 92 30 88 Fax: +98 21 22 92 26 83 Email: info@gohargodaz.com

For details contact: Suomen Messut Messuaukio 1, PO Box 21, FIN-00521 Helsinki, Finland Tel: +358 9 150 91, Fax: +358 9 142 358 Email: info@finnexpo.fi

InformexUSA 2011 It will provide a meeting point for buyers and sellers of high-value chemicals; February 07-10, 2011; Charlotte Convention Center, Charlotte, The US For details contact: United Business Media Industrieweg 54, PO Box 200 3600 AE Maarssen, The Netherlands Tel: +31 34 65 59 444 Fax: +44 (0) 20 7921 8059 Email: jblack@cmpinformation.com

ISRACHEM 2011 An exhibition on industrial processing, chemical engineering, measurement control and instrumentation; February 22-24, 2011; Israel Trade Fairs Center, Tel Aviv For details contact: Stier Group Ltd 12, Tversky Street, Tel Aviv 67210, Israel Tel: +972 (0)3 5626090 Fax: +972 (0)3 5615463 Email: expo@stier.co.il

CIPPE 2011 An event for petroleum & petrochemical technology and equipment; March 22-24, 2011, New China International Exhibition Center, Beijing, China For details contact: ITE Group Plc 105 Salusbury Road London, NW6 6RG, The UK Tel: +44 (0) 20 7596 5000 Fax: +44 (0) 20 7596 5111 Email: enquiry@ite-exhibitions.com

Analytica Vietnam 2011 A trade fair and conference for analytical instrumentation, biotechnology, laboratory technology and services; April 07-09, 2011; at Ho Chi Minh City, Vietnam For details contact: Imag Am Messesee 2 81829 Munich, Germany Tel: +49 (0) 89 949 22 0 Fax: +49 (0) 89 949 22 350 Email: info@imag.de

FILTSEP 2011

May 18-19, 2011; at Exhibition Centre Westfallenhalle Dortmund, Germany For details contact: easyFairs - Brussels Rue Saint Lambert, 135 B-1200 Brussels, Belgium Tel: +32 (0)2 740 10 70 Fax: +32 (0)2 740 10 75 Email: europe@easyfairs.com

Oil and Gas Asia 2011 Asian oil, gas and petrochemical engineering exhibition; June 01-03, 2011; at Kuala Lumpur Convention Centre, Malaysia For details contact: Allworld Exhibitions 12th Floor, Westminster Tower 3 Albert Embankment, London The UK Tel: +44 (0)20 7840 2100 Fax: +44 (0)20 7840 2111 Email: info@oesallworld.com

Chemspec Europe 2011

A trade fair for equipment and technologies for filtration and separation; April 26-29, 2011; at Crocus-Expo IEC, Moscow, Russia

An exhibition for performance & fine chemicals and organic intermediates; June 15-16, 2011; at Palexpo, Geneva, Switzerland

For details contact: MVK - International Exhibition Company 1 Sokolnichesky Val Pavilion 4, Moscow 107113, Russia Tel: +7 (495) 995-05-95 Email: info@mvk.ru

For details contact: Dmg World Media (UK) Ltd Westgate House 120/130 Station Road Redhill, Surrey RH1 1ET, The UK Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855475 Email: webmaster@ca.dmgworldmedia.com

Dye+Chem Indonesia 2011 Exhibition focussing on all kinds of dyes and fine & specialty chemicals; May 1214, 2011; at Jakarta International Expo (JIExpo), Indonesia For details contact: CEMS Bangladesh House # 119, Unit- A3 Road-1, Banani Block-F Dhaka 1213, Bangladesh Tel: +880 2 8812713 Fax: +880 2 9894573 Email: cems@cemsonline.com

SCHÜTTGUT 2011 Industry forum for manufacturers of powder, granules and bulk solids;

PEPP 2011 A business forum dedicated to polyethylene & polypropylene (PEPP) products, technologies and market; September 20-22, 2011; at Swissôtel Zurich, Switzerland For details contact: Maack Business Services Moosacherstrasse 14 CH-8804 Au/Zurich Switzerland Tel: +41 1 781 30 40 Fax: +41 1 781 15 69 Email: mbspolymer@aol.com

The information published in this section is as per the details furnished by the respective organiser. In any case, it does not represent the views of Chemical World

January 2011 | Chemical World

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Engineering Expo Ahmedabad 2010

Taking the triumph forward Creating history, Engineering Expo Ahmedabad 2010 registered over 250 exhibitors and generated business of over ` 100 crore, the biggest ever since its launch in 2002. Taking the triumph forward and playing the role of an enabler, this year’s Engineering Expo Ahmedabad edition kept up with its promise of generating envious business deals and maximum Returns on Investment (RoIs) for exhibitors and visitors alike. A report… Purna Parmar

aving established their mettle in facilitating growth, trade shows have been proven to be success platforms for companies to form business alliances and transactions. This was evident from the grand success of the 9th edition of Engineering Expo Ahmedabad. Apart from being a good promotional vehicle for brands and

products, trade shows offer lucrative business prospects and a platform for business generation. Engineering Expo Ahmedabad 2010 proved to be one of the biggest shows in the history of Engineering Expo Ahmedabad, since its inception in 2002. It has managed to generate business amounting to over ` 300 crore in the past nine years; moreover, this year it managed to generate business transactions worth ` 100 crore. Talking about

the returns the exhibitors get from the expo, Shirish Vyas, Marketing Manager, Cranoist Material Handling Equipments, said, “About 15-20 per cent of our business is done at the Engineering Expo. But, we do not set any sales target for the Expo, as these sales are just an incentive of the investments we make while participating in the Expo. We spend a substantial amount of money on exhibitions and expos.”

Engineering Expo - Ahmedabad basks in glory The four-day Engineering Expo at Ahmedabad was flagged off on December 10, 2010, with a traditional lamp-lighting ceremony followed by a formal ribbon cutting. Industry torchbearers BB Swain, IAS, Industries Commissioner, Government of Gujarat, and Pradyumna Vyas, Director, National Institute of Design, bestowed an auspicious momentum to the event. Both Vyas and Swain were overwhelmed with the strength displayed by the industry. Serving as a perfect platform for profit, the Expo managed to converge the entire manufacturing and engineering industry of Gujarat under one roof. Manufacturing forms the core of the state’s industrial profile, according to Swain, with Gujarat contributing 40 per cent to the total engineering export of India. The manufacturing industry helps provide employment to over 18 lakh people in the state. men er, Govern ommission C es ri st u d ad , IA S, In o Ahmedab BB Swain eering Exp in g En g n inaugurati 72

Chemical World | January 2011

rat t of Guja

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Meanwhile, Nurul Vora, Marketing Manager, Hydro Pneumatic Equipments, explained, “The conversion rate at the Engineering Expo is over 50 per cent. We sold a machine on the first day of the exhibition and generated business of about ` 10 lakh by the end of the Expo. Trade fairs easily gather all Original Equipment Manufacturer (OEM) and processrelated customers under one roof, and this is what makes the Engineering Expo unique.” Highlighting the glorifying success achieved by the Expo year after year, Sandeep Khosla, CEO - Publishing, Infomedia18, said, “Engineering Expo Ahmedabad has managed to withstand the test of time, and for

nine consecutive years it has been a vital platform for forging trade ties. Right from new product launches to substantial business transactions, Engineering Expo Ahmedabad has established itself as a trendsetter of innovative offerings.” Similarly, Mehul Gajjar, CMD, Heena Equipment, said, “Apart from meeting prospective clients, we see latest technology and machinery displayed by the industry. We sold four welding machines on the first day of the exhibition. We have launched a new product at the expo. It is a three-inone machine that can perform all types of welding and cutting operations.” While Ahmedabad serves as a perfect trade centre for the industry,

smaller cities like Rajkot have now emerged as manufacturing hubs, especially for the machine tools industry. Tushar Shaparia, MD Jamnagar Machine Tools, commented, “The machine tools industry is growing at 15-20 per cent. Rajkot is emerging as a manufacturing hub for the machine tools industry, and this is mainly due to the presence of other machinery and related companies in Rajkot. Trade shows like the Engineering Expo play a vital role in our growth, as we get an opportunity to meet prospective clients and create a good brand presence in a big city like Ahmedabad. ” In all, Engineering Expo Ahmedabad managed to successfully take this legacy forward, proving to be the biggest ever Expo in the history of Ahmedabad and the second biggest in the history of the Engineering Expo. While the Expo managed to serve as a lucrative business platform and the biggest product showcase vehicle, it also managed to give the best RoIs to the exhibitors.

Creating a business environ Engineering Expo - Ahmedabad managed to generate business worth ` 100 crore. The Expo witnessed the participation of more than 250 exhibitors from various industry verticals and a visitor turnout of over 19,759. To facilitate the enterprising spirit of the industry and provide a platform, The Gujarat government is coming up with two new conventional centres in Gandhinagar, both of which will be used for the next Vibrant Gujarat slated to take place in January. Further, talking about how trade fairs help the industry grow, Shirish Vyas, Marketing Manager, Cranoist Material Handling Equipments, said, “Trade fairs like the Engineering Expo are helpful in displaying our products on a single platform where all our potential customers can come and have a first-hand experience of the product.” Similarly, Shrikesh Mehta, Bearing and Tool Centre, said, “A trade fair is one of the best opportunities a company can have to showcase its products to its customers. It is difficult for us to show our products door-to-door, but in a trade fair, the customer comes to you, and thus it helps us create a good database of customers.” January 2011 | Chemical World

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250+ exhibitors Innovative products

Market scenario

Madhur Mehrotra, Head â&#x20AC;&#x201C; Chemical Division, Earth Water Group

Paresh Patel, Executive Marketing, Masibus Automation and Instrumentation

We mainly offer purification and filtration services for the water and wastewater management industry. We have launched a new range of softeners at Engineering Expo this year. This is a very convenient and easy to use product. It does not have many time-consuming functions. These can be used in large homes, industries and even large institutions.

Gujarat, particularly Ahmedabad, is a new market for us and so it is a good opportunity to explore this market. Rajkot in particular, is an emerging hub and has a large number of manufacturing companies, while Ahmedabad is a trade hub.

Ashish Vij, Executive Business Development, Bry-Air We deal in air treatment and moisture control systems. The Indian manufacturing industry is moving up the growth curve, and we are very optimistic about it. Trade fairs like these help us display our products to the right audience, as the visitor profile of these trade fairs is focussed.

Tushar Shaparia, MD, Jamnagar Machine Tools The machine tools industry is growing by 15-20 per cent per year. About 20 per cent of our business is generated through trade fairs.

Amit Gosai, Sales Engineer, S & T Engineers Ahmedabad is one of our target markets, we also plan to have a footprint in the surrounding areas like Rajkot, Baroda and Anand. We see a good potential in these markets as well.

Manish Raval, VP Sales, Mobienturbo Trade fairs are a platform where we can display our technology and explain to customers about the design and technical aspects of the product. We conduct several technical sessions in trade fairs, where we demonstrate the importance of design and other technical aspects of the product.

Mangesh Agarwal, GM, Cleaning and Filtration Systems India The Ahmedabad market for cleaning and filtration equipment is still at a nascent stage. At trade fairs we get to know the kind of technologies and products available in the market.

e 2010 edition was th e th in biggest show g history of Engineerin be it , ad ab Expo â&#x20AC;&#x201C; Ahmed rs, ito hib ex the number of d, pie cu oc visitors, area for the revenue generated of nt ou company or am ted ac business trans

Chemical World | January 2011

Ashish Sengupta, GM, Atlas Copco The compressor market in India is not very competitive image nature. Looking at the way the market is developing, compressors will become a necessity for all industries. Gujarat is the only state in India that is fully developed compared to other states. Moreover, in Gujarat even smaller cities like Vapi are highly developed. So the scope of economic development is far better in the state. We see a huge geographical advantage in Gujarat, as means of transportation is high.

More than 1 00,000 kg machinery w as brought in by exhibitors at the Expo, w hich is again the highest in th e history of En gineering Ex po

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Business of over

` 100 crore

Creating a business environment

19,759+ Visitors Enchanted visitors Rajesh Panchal, MD, Ambica Engineering

Manish Chandrani, B E Elect, Kumarpal Kantilal and Co, Kirloskar oils Trade fairs are mainly seen as an opportunity to showcase products. We have been participating in the Engineering Expo for the last four years and have generated many leads, 40 per cent of which get converted into business.

Shreepad Deshpande, Regional Manager â&#x20AC;&#x201C; West, Kulkarni Power Tools We are first time exhibitors at this Expo but the response has been very good for us, as we have sold two machines at the Expo.

Pratik Bhatt, Slaes & Service, Komet India

Generally, we see products only in company brochures, and it is difficult for us to understand the product and other features of the equipment. However, at the Expo we had first hand experience of handling the products and also saw a demo of the machine. I have booked a welding machine here as well.

Deepak Shah, Manager, Spartex I am not from engineering background, but the kind of products displayed were interesting and I learnt a lot about manufacturing and CNC machines at the Expo.

Jaiprakash Gala, Sales Engineer, Mamta Engineering

The manufacturing industry is growing at a fast pace and Gujarat has been on the forefront. Over 8 per cent of our marketing budget is spent on trade exhibitions and shows, while 20 per cent of our business is generated from these exhibitions.

The Expo was well organised, especially the venue chosen was very good. It looks like an international event. The exhibitors from power tools industry were helpful, as they offered guidance regarding the applications. The equipment displayed could be used at home as well as in industrial shop floors.

Jagadish Patel, Sales Manager, Neutron Power Tools

Manish Sangla, Manager, Tasyani Traders

We have been participating in Engineering Expo since the last five years. Although we did not concentrate on making any actual sales, we managed to generate several business leads for our dealers spread across the state.

exhibitors 85 per cent eering found Engin abad 2010 ed Expo Ahm other better than s w trade sho

The organisers have chosen a very good venue, and the Expo was also grand. I got the tools I needed at the Expo. I plan to come back next year as well.

83 per c ent exhib itors were ha ppy with the quality o f visitors at the show

January 2011 | Chemical World

PRODUCT UPDATE

Digital colour mark sensor

Corrugated tube heat exchangers

Lubi Electronics offers ‘LX-100’ series digital colour mark sensor. This can detect any marking because it is equipped with red, green and blue LED light emitting element. To expand the functionality, the sensor comes with dual mode: ‘Mark Mode’ (ultra high-speed response) and ‘Colour Mode’ (high-precision mark colour discrimination) to suit any application. This sensor comes with ‘Mode Navi’ technology for enhancing features and easy to use. The other special features include four-digit digital display, simple teaching, external teaching, 12-bit A/D converter, D-code, key lock, timer, NPN or PNP outputs, IP67 protection, etc. All these come in the size of W57 x D24 x H38 mm body. It can be used effectively in many applications/industries.

HRS Process Systems offers ‘Ecoflux’ corrugated tube heat exchangers. In these, heat transfer area can be reduced to less than half of that required in a plain tubular heat exchanger. Corrugated tube heat exchangers are shell & tube heat exchangers, which use corrugated tubes instead of plain tubes. The most important feature of this type of heat exchanger is the corrugated tube. Corrugated tubes take the best features of both the plain tube and the plate heat exchanger. The tubes are corrugated to induce turbulence in both flows (product & service) at lower velocities. This not only increases thermal efficiency but also eliminates product channelling. ‘Ecoflux’ is available in following models: ‘K’ series is a multi-tube heat exchanger for process industry applications; ‘MI’ series is a multitube heat exchanger for food/fruit processing applications; ‘DT’ series is a tube in tube heat exchanger and is capable of handling large particulates; ‘AS’ series is a triple tube heat exchanger made of three concentric tubes, which give three annular spaces. The product fluid channel is surrounded on both sides by the service fluid used for high viscous material. The heat exchanger finds its extensive use in various industries such as chemical process, pharmaceutical, petrochemicals, fertilisers, edible oil, food & beverage processing etc.

Lubi Electronics Ahmedabad - Gujarat Tel: 079-2220 5471, Fax: 079-2220 0660 Email: info@lubielectronics.com

High-vacuum oil-seal rotary pumps Joyam Engineers & Consultants offers high-vacuum oil-seal rotary pumps. These are oil-immersed, rotary vane type pumps. The inbuilt non-return valve prevents the back flow of air. Manufactured from graded material, all moving parts are precisely machined, ground and assembled with close tolerances. This results in increased efficiency and long trouble-free operation. These pumps develop maximum vacuum of 0.05 mm of Hg in single-stage and 0.005 mm of hg in doublestage. Pumps operate at 500 rpm with the help of ‘V’ belt. These pumps are widely used in solvent extraction & recovery, sugar, oil refineries, distilleries, food processing, chemical, pharmaceutical, fertiliser, paper, textile, tube light & general lighting, printing etc. These pumps are suitable for various processes like vacuum filtration, distillation, vacuum crystallisation, vacuum impregnation, vacuum metallurgy, thin film coating, vacuum drying, dehydration, evaporation, deodorisation, de-gassing, moisture extraction, vacuum condensation, conveying, venting, etc. They have simple & rugged construction, trouble-free operation and low maintenance. Capacity ranges from 3 m3/hr (50 ltr/min) to 600 m3/hr (10,000 ltr/min). Joyam Engineers & Consultants Ahmedabad - Gujarat Tel: 079-2656 9533, Fax: 079-2656 2777 Email: joyam@joyamvactech.com

Chemical World | January 2011

HRS Process Systems Pvt Ltd Pune - Maharashtra Tel: 020-2566 3581, Fax: 020-2566 3583 Email: mktcom@hrsasia.co.in

Humidity & temperature indicator Katlax Enterprises offers humidity and temperature (ceiling hanging) indicator unit with standard features. Technical specifications include: supply voltage of 230 V AC ±10 per cent @ 50 Hz; display type of seven segment red 4.0”; display of threedigit scrolling (every 5 sec); Display range for temperature -50°C to +150°C; and display range for humidity 0 to 100 per cent. This instrument is ideal for automotive, HVAC, consumer goods, weather stations, humidifiers, de-humidifiers, food & agro, textile, test & measurement, space electronic assembly, ICU, air handling unit, multiplex, data logging and automation. Katlax Enterprises Pvt Ltd Gandhinagar - Gujarat Tel: 02764-286 784/85, Fax: 02764-286 793 Email: info@katlax.com

PRODUCT UPDATE

Multi-level inverter Suvik Electronics offers H bridge multi-level inverter â&#x20AC;&#x2DC;N 5000â&#x20AC;&#x2122; for medium-voltage and highpower AC motor drives. Main features of this inverter are as follows: reduction of harmonic injection into the utility by means of specially designed multi-winding transformers; generation of near sinusoidal voltages with only low frequency switching; almost no common mode voltage; low dv/dt at output voltage; no significant over voltage on motor terminal even if the distance between inverter and motor is long. Applications are in power plants, incineration plants, sewage water treatment plants, oil pumping stations, etc. Main features: motor friendly; power source friendly; directly drive medium voltage AC motor; high performance; high reliability; high efficiency/high power factor; user-friendly maintenance; powerful and easy-to-use operation; and full range line-up. Suvik Electronics Pvt Ltd Gandhinagar - Gujarat Tel: 079-2321 2001 Fax: 079-2321 2006 Email: info@suvik.com

January 2011 | Chemical World

PRODUCT UPDATE

Monoblock rotary vacuum pump Acmevac Sales offers monoblock rotary vacuum pumps. These are compact in size as the pumps are directly fitted on motor flange. These pumps are oil-free as no external lubrication is required. They are light in weight and hence easily portable. As the pumps are of compact in design, they can be easily mounted on original equipment. These pumps are specially designed where oil-free vacuum is required and find applications in packaging machines, printing machines, pharmaceutical machines, material handling equipment, currency note counting machines etc. These pumps can be operated by single-phase and three phase motors. They are available in capacities from 40 to 100 ltr/min, vacuum up to 24â&#x20AC;? Hg and maximum pressure up to 8 psi. Acmevac Sales Pvt Ltd Mumbai - Maharashtra Tel: 022-2837 5837 Fax: 022-2836 4977 Email: acmevac@vsnl.com

Chemical World | January 2011

PRODUCT UPDATE

Rotary gear pumps Dev Engineers offers â&#x20AC;&#x2DC;DGP-SSâ&#x20AC;&#x2122; series positive displacement stainless steel rotary gear pump with investment cast CF 8M casing. It covers 316 gears & shaft and Teflon-coated dry running sintered PTFE coated bush bearings. These pumps are ideal for handling corrosive, hygienic abrasive viscous liquid for loading/unloading transfer and pressurising application. Dev Engineers Ahmedabad - Gujarat Telefax: 079-6661 3839 Email: devpumps@dataone.in

Electrolysers Ti Anode Fabricators offers electrolysers having production capacity of single electrolyser at a maximum of 125 kg/hr. High capacity of the chlorine production can be made with multi-fold cell assembly (more than 1,250 kg/hr) for industrial/commercial application. Ti Anode Fabricators Pvt Ltd Chennai - Tamil Nadu Tel: 044-2278 1148, Fax: 044-2278 1362 Email: info@tianode.com

January 2011 | Chemical World

PRODUCT UPDATE

Agitator mechanical seals Rotomech Engineering offers factory assembled double mechanical agitator seals for applications in mixers, agitators, rotary dryers, fermenters and reactors. These double-mechanical seals are designed for handling severe & hazardous fluids. The design incorporates bearings located very close to seal to avoid cantilever effect at seal area. A standard cooling jacket is provided in the seals to dissipate maximum amount of heat generated by the seal faces. Seals can be given without bearing, if equipment bearings are very close to seal area. These agitator mechanical seals are offered in shaft diameter: 20 to 200 mm, pressure: vacuum 12 bar (max), temperature: ambient to 200oC (max), shaft speed: 700 rpm (max). Rotomech Engineering Mumbai - Maharashtra Telefax: 022-2678 7163 Email: rotomechengg@mtnl.net.in

Chemical World | January 2011

PRODUCT UPDATE

Vacuum pumping unit Acmevac Sales offers vacuum pumping units, which consist of twin lobe pumps as forepump and rotary vane pump or liquid ring pump as backing pump. The foreâ&#x20AC;&#x201C;pump picks up oil necessary for its lubrication from the backing pump. The exhaust from the fore-pump is connected to the suction side of the backing up thereby giving advantage of high pumping speed at higher vacuum. These units are highly energy-efficient and consume less power than conventional single vacuum pumps. These pumping units are of compact design and mounted on base frames ready for use. They are tailor-made and are offered to suit user requirements. Applications include vacuum distillation, evaporative concentration, vacuum drying, vacuum coating, degassing, gas evacuation, sintering, brazing, metallurgy, heat-treatment etc. Acmevac Sales Pvt Ltd Mumbai - Maharashtra Tel: 022-2837 5837, Fax: 022-2836 4977 Email: acmevac@vsnl.com

January 2011 | Chemical World

PRODUCT UPDATE

Full body opening centrifuge Lester & Dynamiks offers full body opening centrifuges. These machines are commonly used where the cleaning process is of prime importance. The machine would be useful in places where there is frequent product changeover. Top body of the centrifuge is hinged and body flange is provided with square gasket to ensure leak proof with LBD. Hydraulic cylinder is provided to open top body of the centrifuge, which gives easy access to clean the entire basket and full internal body. It is provided with two hydraulic cylinder arrangements for CIP (clean in place) on nut bolt arrangement, which can be removed as and when required. The size is customised from 24 to 48 inches dia. Lester & Dynamiks (India) Thane - Maharashtra Tel: 0250-245 4735 Email: lester_n_dynamiks@yahoo.com

Chemical World | January 2011

PRODUCT UPDATE

Hydrophilic swelling rubber waterstops Adeka India offers a wide range of products for civil engineering and construction that can be applied to a variety of fields. The â&#x20AC;&#x2DC;Adeka Ultrasealâ&#x20AC;&#x2122; is a urethane modified rubber waterstop that utilises the elasticity and water swelling property of rubber. Ultraseal is an innovative double-locking hydrophilic waterstop. It stops water by compression of the rubber and by hydrophilic action (expansion pressure) when it is exposed to water. This is available in preformed rubber strips, paste or liquid to provide a waterstop for construction applications like tunnels (like Metro train projects, subways, sewage pipe lines), dams, bridges etc. Adeka India Pvt Ltd Mumbai - Maharashtra Tel: 022-4026 3301/02/03, Fax: 022-4026 3306 Email: info@adekaindia.com

The information published in this section is as per the details furnished by the respective manufacturer/ distributor. In any case, it does not represent the views of Chemical World

January 2011 | Chemical World

Tel.: +91-22-3003 4684 Fax.: +91-22-3003 4499 Email: b2b@infomedia18.in

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Please tick against the box of product(s) you are interested in: Mention specific product/service you need, Complete all the details on this form. Tear the form & mail it to us. (It is a prepaid mail)

Acoustic hoods...................................................... Agitator mechanical seals ...................................... Air blowers ............................................................ Air breathing apparatus......................................... Air chiller for IBC ................................................... Air pollution control equipment............................. Air receiver ............................................................ Air treatment......................................................... Air-cooled heat exchanger ..................................... Air-cooled steam condensers ................................. Aluminium oxide ceramic composite...................... APFC panels........................................................... Ball valves .............................................................. Ball valves - Teflon-lined......................................... Bellows & dip-pipes ............................................... Blowers ................................................................. Boilers ................................................................... First Fold Here Burners.................................................................. Butterfly valves ...................................................... Butterfly valves - Teflon-lined ................................. Carbon black - general-purpose grade ................... Carbon black - jet black grade ............................... Carbon black - pigments quality ............................ Carbon black - water-soluble grade........................ Centrifuges ............................................................ Ceramic adhesive cement....................................... Ceramic electrical heater parts ............................... Check valves - Teflon-lined ..................................... Chemical directory ................................................. Chemical dosing pump .......................................... Chemical pumps.................................................... Chemical tanks ...................................................... Chlorination plant.................................................. Chlorine cylinder/tonner emergency repair kit ........ Chlorine gas cylinder ............................................. Chlorine gas mask ................................................. Chloroscope .......................................................... Condensers............................................................ Cone screw mixer .................................................. Conical screw dryers .............................................. Second Fold Here Containers ............................................................. Cooling tower ....................................................... Corrugated tube heat exchangers .......................... Custom mouldings ................................................ Dairy equipment .................................................... Dampers................................................................ Dfull body opening centrifuge ............................... Digital colour mark sensor ..................................... Digital panel meter ................................................ Distribution transformer ........................................ Drives .................................................................... Drums & carboys ................................................... Electrolysers...........................................................

EPC ....................................................................... Exhibition - 2010 India Excellence in Chemicals, Materials & Food Awards....................................... Exhibition - Engineering Expo ................................ Expansion bellows ................................................. Fire tube type package IBR steam boiler................. Fittings .................................................................. Fluid ...................................................................... Fluoropolymer-lined valves ..................................... FRP underground fuel tanks................................... Gas detectors ........................................................ Gate valves/globe valves/check valves ..................... Gear ...................................................................... Gear motor............................................................ Gear pumps .......................................................... Gearbox ................................................................ Geared & flexible couplings ................................... Geared motor........................................................ GMP heat exchangers ............................................ GMP reactors......................................................... Grinding media ..................................................... Heat exchangers .................................................... Helical gearbox ...................................................... High alumina wear resistant ceramic tiles .............. High vacuum oil-seal rotary pumps........................ Hoses & accessories ............................................... Hot air & water generator...................................... HRC fuse bodies .................................................... Humidity & temperature indicator.......................... Hydrogenator/autoclaves ....................................... Hydrophilic swelling rubber waterstops.................. Industrial ceramic .................................................. Industrial coolers ................................................... Insulated boxes...................................................... Isolation transformer ............................................. Lined ball valves..................................................... Lined valves ........................................................... Lined valves & pipe fittings .................................... Marine air conditioning ......................................... Material handling containers ................................. Materials and food awards .................................... Micro milling beads ............................................... Mill lining blocks ................................................... Mineral processing ................................................ Monoblock pumps ................................................ Monoblock rotary vacuum pump........................... Multi-fuel fired IBR steam boiler............................. Multi-level inverter................................................. Non-metallic pumps .............................................. Non-return valves .................................................. Paints and coatings................................................ Pallets.................................................................... Paper.....................................................................

Send your inquiries at: Tel: +91-22-3003 4684 Fax: +91-22-3003 4499 Email: b2b@infomedia18.in

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Address: Company Name: Designation: Name: 3. Your line of business 1. Your company’s business function is ( one only) Wholesalers Manufacturer Distributor Agent Other, please specify ______________ 2. Your role in your company’s buying process can best be described as: I buy I identify potential suppliers I approve purchases I negotiate contracts I select suppliers.

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Paperless recorder........................................ PFA-lined fittings ......................................... PFA-lined products....................................... pH meter..................................................... Photoelectric sensor..................................... Piping systems ............................................. Pollution monitoring machines .................... Polypropylene process pumps ...................... Power conditioner ....................................... Power saver ................................................. Pressure & flow control instruments............. Pressure control solutions ............................ Process controllers ....................................... Process equipment....................................... Process heat exchangers .............................. Process reactors ........................................... Process valves .............................................. PTFE-lined fittings ........................................ PTFE-lined pipe ............................................ PTFE-lined products ..................................... PTFE-lined spool pipe...................................

PTFE-lined valves & pipe fittings ................... Pumps ......................................................... PVDF pumps................................................ Reactors ...................................................... Re-crystallised alumina tubes ....................... Rotary gear pumps ...................................... Rotary vacuum dryers .................................. Rotocone dryers........................................... Sampling valves - Teflon-lined ...................... Self-adhesive tapes ...................................... Self-priming mud pump .............................. Self-priming sewage pump .......................... Servo stabiliser ............................................ Silicon carbide heat exchangers ................... Spherical paddle chopper dryers .................. Spiral-cum-helical gearbox ........................... Spool pipe ................................................... Spray dryer project ...................................... Steam boilers............................................... Strainers - Teflon-lined ................................. Technical ceramic.........................................

Teflon-lined valves & pipe fittings................. Telecom ....................................................... Temperature controller................................. Thermic fluid heater .................................... Turbidity meter ............................................ Turnkey projects........................................... Turnkey projects (energy) ............................. Ultra deep temperature freezer.................... Ultrasonic flowmeter ................................... UPS ............................................................. Vacuum pumping unit................................. Vacuum pumps ........................................... Valves.......................................................... Ventilators ................................................... Vertical glandless pumps ............................. Vertical non-IBR oil-fired steam boiler .......... Water treatment.......................................... Water wall membrane panel IBR steam boiler ..... Water/brine/hydraulic oil/chilling plant ......... Wood-fired thermic fluid heater................... Worm gear .................................................. Zirconia polycrystal ceramic .........................

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Jyoti Ceramic Industries Pvt Ltd ..............................

Aqua Services ........................................................

Kimberlite Chemicals India Pvt Ltd .........................

Balkrishna Boilers Pvt Ltd .......................................

LAN Marketing Pvt Ltd...........................................

Bonfiglioli Transmissions (Pvt) Ltd...........................

Lester & Dynamiks (India).......................................

Carbon India .........................................................

Micon Valves .........................................................

Chilton Refrigeration.............................................. First Fold Here

Paharpur Cooling Towers ......................................

Dev Engineers........................................................

Premium Transmission Ltd......................................

Dipesh Engineering Works .....................................

Pressure & Flow Control Industries .........................

Dip-Flon Engineering Co ........................................

Procon Technologies Pvt Ltd...................................

Elecon Engineering Company Limited ....................

Raj Process Eqpts & Systems(P) Ltd.........................

EM Jay Engineers...................................................

Servomax India Ltd. ...............................................

Engineering Expo...................................................

Shavo Technologies Pvt Ltd ....................................

Everest Blowers......................................................

Siemens Ltd...........................................................

Second Fold Here Frost & Sullivan......................................................

Sintex Industries Ltd...............................................

Gem Equipments Ltd .............................................

Small Indusrty Research Institute............................

Hi Tech Applicator .................................................

Sreelakshmi Traders ...............................................

Hitech Engineering Show.......................................

UHDE India Private Ltd...........................................

HRS Process Systems Ltd ........................................

Uniphos Envirotronic Pvt Ltd..................................

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PRODUCT INDEX Product

Pg No

Product

Pg No

Product

Pg No

Acoustic hoods........................................... 15

Fittings ........................................................7, 85

Pressure & flow control instruments ................ 78

Agitator mechanical seals ................................ 80

Fluid .................................................................. 4

Pressure control solutions ................................ 85

Air blowers ...................................................... 15

Fluoropolymer-lined valves ...........................7, 81

Process controllers ............................................. 6

Air breathing apparatus................................... 85

FRP underground fuel tanks............................. 81

Process equipment........................................... 79

Air chiller for IBC ............................................. 51

Gas detectors ............................................. 69

Process heat exchangers .................................... 1

Air pollution control equipment....................... 31

Gear .................................................................. 4

Process reactors ................................................. 1

Air receiver ...................................................... 31

Gear motor........................................................ 4

Process valves .................................................. 85

Air treatment ................................................... 53

Gear pumps..................................................... 55

PTFE-lined fittings .............................................. 7

Air-cooled heat exchanger ............................... 11

Gearbox............................................................. 4

PTFE-lined pipe .................................................. 7

Air-cooled steam condensers ........................... 11

Geared & flexible couplings ............................... 4

Aluminium oxide ceramic composite............... BIC

Geared motor .................................................. 19

APFC panels..................................................... 17

GMP heat exchangers ........................................ 1

Ball valves - Teflon-lined.............................. 5

GMP reactors..................................................... 1

Bellows & dip-pipes ........................................... 5

Grinding media............................................... BIC

Blowers............................................................ 15

Heat exchangers............................. FIC, 8, 31

Boilers.............................................................. 78

Helical gearbox ................................................ 19

Burners ............................................................ 78

High alumina wear resistant ceramic tiles ....... BIC

Butterfly valves - Teflon-lined ............................. 5

High vacuum oil-seal rotary pumps.................. 76

Carbon black - general-purpose grade ..... 77

Hoses & accessories ......................................... 85

Carbon black - jet black grade......................... 77

Hot air & water generator ............................... 78

Carbon black - pigments quality ...................... 77

HRC fuse bodies ............................................. BIC

Sampling valves - Teflon-lined .................... 5

Carbon black - water-soluble grade ................. 77

Humidity & temperature indicator ................... 76

Self-adhesive tapes .......................................... 77

Ceramic adhesive cement................................ BIC

Hydrogenator/autoclaves.................................... 1

Self-priming mud pump .................................. 79

Ceramic electrical heater parts ........................ BIC

Hydrophilic swelling rubber waterstops............ 85

Self-priming sewage pump .............................. 79

Check valves - Teflon-lined................................. 5

Industrial ceramic .....................................BIC

Servo stabiliser ................................................ 17

Chemical directory ........................................... 81

Industrial coolers ............................................. 53

Silicon carbide heat exchangers ......................... 1

Chemical dosing pump .................................... 85

Insulated boxes................................................ 81

Spherical paddle chopper dryers ........................ 1

Chemical pumps .............................................. 79

Isolation transformer........................................ 17

Spiral-cum-helical gearbox ................................. 4

Chemical tanks ................................................ 81

Lined ball valves........................................... 7

Spool pipe ......................................................... 7

Chlorination plant............................................ 85

Lined valves ....................................................... 7

Spray dryer project........................................... 31

Chlorine cylinder/tonner emergency repair kit ...... 85

Lined valves & pipe fittings ................................ 5

Steam boilers................................................... 78

Chlorine gas cylinder........................................ 85

Marine air conditioning ............................. 51

Strainers - Teflon-lined....................................... 5

Chlorine gas mask ........................................... 85

Material handling containers ........................... 81

Technical ceramic......................................BIC

Chloroscope..................................................... 85

Materials and food awards .............................. 86

Teflon-lined valves & pipe fittings ...................... 5

Condensers ...................................................... 31

Micro milling beads ........................................ BIC

Telecom ........................................................... 17

Cone screw mixer ............................................ 31

Mill lining blocks............................................. BIC

Temperature controller ...................................... 6

Conical screw dryers .......................................... 1

Mineral processing........................................... 33

Thermic fluid heater......................................... 78

Containers ....................................................... 81

Monoblock pumps........................................... 79

Turbidity meter ................................................ 85

Cooling tower......................................11, 51, 53

Monoblock rotary vacuum pump..................... 78

Corrugated tube heat exchangers .................... 76

Multi-fuel fired IBR steam boiler ...................... 78

Custom mouldings........................................... 81

Multi-level inverter ........................................... 77

Dairy equipment ........................................ 31

Non-metallic pumps................................... 79

Dampers .......................................................... 31

Non-return valves............................................... 5

Dfull body opening centrifuge ......................... 82

Paints and coatings ................................... 33

Digital colour mark sensor ............................... 76

Pallets .............................................................. 81

Digital panel meter ............................................ 6

Paper ............................................................... 33

Distribution transformer................................... 17

Paperless recorder.............................................. 6

Drives .............................................................. BC

PFA-lined fittings ............................................... 7

Drums & carboys ............................................. 81

PFA-lined products............................................. 7

Vertical glandless pumps ................................. 79

Electrolysers ............................................... 79

pH meter ......................................................... 85

Vertical non-IBR oil-fired steam boiler .............. 78

EPC.................................................................. 41

Photoelectric sensor ......................................... 81

Water treatment ........................................ 33

Exhibition - 2010 India Excellence in

Piping systems ................................................... 7

Water wall membrane panel IBR steam boiler ... 78

Chemicals, Materials & Food Awards............. 86

Pollution monitoring machines ........................ 69

Water/brine/hydraulic oil/chilling plant ............. 51

Exhibition - Engineering Expo ....................27, 65

Polypropylene process pumps .......................... 79

Wood-fired thermic fluid heater ...................... 78

Expansion bellows ............................................. 7

Power conditioner............................................ 17

Worm gear ........................................................ 4

Fire tube type package IBR steam boiler......78

Power saver ..................................................... 17

Zirconia polycrystal ceramic .....................BIC

PTFE-lined products ........................................... 7 PTFE-lined spool pipe......................................... 7 PTFE-lined valves & pipe fittings......................... 5 Pumps .......................................................79, 81 PVDF pumps .................................................... 79 Reactors...................................................... 31 Re-crystallised alumina tubes .......................... BIC Rotary gear pumps .......................................... 79 Rotary vacuum dryers ........................................ 1 Rotocone dryers................................................. 1

Turnkey projects ................................................ 1 Turnkey projects (energy) ................................. 17 Ultra deep temperature freezer ................ 51 Ultrasonic flowmeter.......................................... 6 UPS.................................................................. 17 Vacuum pumping unit............................... 81 Vacuum pumps ............................................... 67 Valves ................................................................ 7 Ventilators ....................................................... 77

BC - Back Cover, BIC - Back Inside Cover, FIC - Front Inside Cover

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January 2011 | Chemical World

ADVERTISERS’ LIST

Advertiser’s Name & Contact Details

Pg No

Advertiser’s Name & Contact Details

Pg No

Aerolite Engineers Pvt Ltd 79 T: +91-2525-605179 E: aerolite.engineers573@gmail.com W: www.aeroliteengrs.com

Engineering Expo T: +91-9920401226 E: engexpo@infomedia18.in W: www.engg-expo.com

27,65

Aqua Services T: +91-265-2331748 E: aquaas@sify.com W: www.aquaservicesindia.com

Everest Blowers T: +91-11-45457777 E: info@everestblowers.com W: www.everestblowers.com

Procon Technologies Pvt Ltd T: +91-79-27492566 E: info@procon.co.in W: www.procon.co.in

Balkrishna Boilers Pvt Ltd T: +91-79-25894701 E: info@balkrishn.com W: www.balkrishn.com

Frost & Sullivan T: +91-22-40013419 E: anishc@frost.com

Bonfiglioli Transmissions (Pvt) Ltd T: +91-44-24781035 E: sales@bonfiglioliin.com W: www.bonfiglioliindia.com

Gem Equipments Ltd T: +91-422-3267800 E: sales@gemindia.com W: www.gemindia.com

Raj Process Eqpts & Systems(P) Ltd 31 T: +91-20-40710010 E: rajindustries@vsnl.net W: www.rajprocessequipment.com

Carbon India T: +91-11-23236666 E: carbonindia@eth.net

Hi Tech Applicator T: +91-79-25833040 E: hitech@ptfeindia.com W: www.ptfeindia.com

Hitech Engineering Show T: +91-9820373804

Chilton Refrigeration T: +91-484-2544571 E: chilton@sify.com W: www.chiltonindia.com

FIC,8

Dev Engineers T: +91-79-26403839 E: info@devpumps.com W: www.devpumps.com

HRS Process Systems Ltd T: +91-20-66047894 E: info@hrsasia.co.in W: www.hrsasia.co.in

Dipesh Engineering Works T: +91-22-26743719 E: sales@dipeshengg.net

Dip-Flon Engineering Co T: +91-79-25624003 E: dipflon@satyam.net.in W: www.dipflon.com

Elecon Engineering Company Limited 4 T: +91-2692-236469 E: infogear@elecon.com W: www.elecon.com EM Jay Engineers 67 T: +91-22-28963809 E: electromech.engg.entp@gmail.com W: www.italvacuum.com

Jyoti Ceramic Industries Pvt Ltd BIC T: +91-253-2350120 E: info@jyoticeramic.com W: www.jyoticeramic.com Kimberlite Chemicals India Pvt Ltd 33 T: +91-80-22187300 E: info@kimberliteindia.com W: www.kimberlitechemicals.com LAN Marketing Pvt Ltd T: +91-22-27893645 E: jai@lanengg.com W: www.maag.com

Paharpur Cooling Towers T: +91-33-24792050 E: pctccu@paharpur.com W: www.paharpur.com

Premium Transmission Ltd 19 T: +91-20-27488886 W: www.premiumtransmission.com

Advertiser’s Name & Contact Details

Pg No

Pressure & Flow Control Industries 78 T: +91-265-2643838 E: info@preconvalves.com W: www.preconvalves.com 6

Servomax India Ltd. T: +91-40-44436666 E: dharmesh@servomax.net W: www.servomax.net

Shavo Technologies Pvt Ltd T: +91-20-26059641 E: shavogroup@vsnl.com W: www.shavogroup.com

Siemens Ltd W: www.seimens.com/chemicals

Sintex Industries Ltd T: +91-2764-253500 E: icontainers@sintex.co.in W: www.sintex-plastics.com

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Chemical World | January 2011