NPCS Newsletter - Issue 24

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Projects Covered in this Issue

Synthetic Tannin Powder for Leather Industry

Bread Plant

Shoe Polish in Aerosol Filling

Oxygen Plant

Rice Flakes from Broken Rice (Used In Beer Industry)

Particle Board from Rice Husk

E–Waste Recycling Plant

Packaged Drinking Water

Mini Sugar Plant

Neutralization of Phospho-Gypsum

Banana Products (Banana Powder, Banana Puree and Banana Concentrate)

Integrated Unit Textile Mill and Readymade Garments

Cattle Feed

Power Transformer

Aluminium Alloy from Scrap and Virgin Metal

PVC Flex Banner (Frontlit, Backlit & Vinyl)

Ferro Alloys

Pharmaceutical Unit (Automatic Plant of Tablet And Capsule)

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Synthetic Tannin PowderFor Leather Industry

The term tannin refers to the use of tannins in tanning animal hidesinto leather; hence the words tan and tanning for the treatmentof leather. However, the term tannin by extension is widely appliedto any large polyphenolic compound containing sufficient hydroxylsand other suitable groups (such as carboxyls) to form strongcomplexes with proteins and other macromolecules.

Synthetic tannins are used in tanneries as replacement tocompliment the tanning action made by the natural tanningextracts. They are used as auxiliaries for pre-tanning, re-tanningand combined tanning and as dispersing agents for vegetabletannins and dyestuffs.

Tannins are incompatible with alkalis, gelatin, heavy metals, iron,limewater, metallic salts, strong oxidizing agents and zinc sulfate,since they form complexes and precipitate in aqueous solution.

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Bread Plant

Bakery products in India are now in common use and are no more exclusive toa few households or classes of performs. Even then, unlike advanced countrieswhere breads are considered basic essentials of a household budget, in Indiathe element of capacity to pay continues to play a significant role . The outlayon bread, thus shares the character of discretionary expenditure rather thanexpenditure on basic is applicable. This necessity more in the case of biscuitsthan in the case of other bakery product. Variants of breads such as ruskshave also found much acceptable among relatively poor households andworkmen but other bakery products such as cakes, pastries, etc. specificallyremain as the items of class consumption .

Much attempt is being made to popularize bakery products among all becausethese products are considered easy, convenient and rather inexpensive meansof taking food in hygienically prepared ready to eat form. A particular role inthis direction is being played by use of both bread and biscuits as means ofnutrition supplementation for large number of children, and locating andnursing mothers who are covered by various feeding programs run by numberof social welfare agencies operating both at the state and the central level. Itis hoped that with further modernization, with influence of urban consumptionpattern, spread of industry and commerce and general change in eating habitsshall gradually improve the share of rural consumption in the total market forbakery products.

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Shoe Polish In Aerosol Filling

Aerosol-type polishes have been extensively used forpolishing shoes, automobiles, household care, etc.Conventionally, an aerosol is prepared by injecting astock solution and a liquefied propellant gas, whichserves to spray the stock solution with a suitablepressure, into a container under a predeterminedpressure.

Stock solution is generally prepared by dissolving aneffective component in a solvent such as petroleumfraction, alcohol, water and synthetic solvent. Thecontent of such stock solution in an aerosol-type polishcomposition is normally 55 to 70 % by volume based onthe total polish composition.

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Oxygen Plant

Gases are liquefied by significantly lowering their temperature: from -183°Cfor oxygen to -269°C for helium. It saves a substantial amount of volume.Gases are generally liquefied during the production phase and directly storedonsite into large cryogenic tanks. They are then dispatched to the customers’site inside perfectly insulated cryogenic transport tanks.

Oxygen purity is vital to efficient production. For example, 99.5 percent pureoxygen can produce high-quality, flame-cut edges. Cylinder oxygen isproduced from vaporized liquid oxygen. Its minimum guaranteed purity is 99.5percent. Liquid oxygen is classified as Type II by the Compressed GasAssociation (CGA).

The other major market segment is known as the merchant or bulk liquidmarket. Customers within this market generally have fluctuating demand ratesor operate multiple facilities in scattered locations. They often purchase gasproducts under short-term contracts of less than five years in duration. Gasesare shipped and stored in liquid form because of volume constraints. Forexample, liquid oxygen takes up less than 1 percent of the space required tocontain the same amount in a gaseous state. Examples of customers in thiscategory include the metal, food processing, electronics, chemical, aerospace,plastics, medical, glass, and paper industries.

The global market size of cryogenic equipment is estimated to be $11 billion in2011. Cryogenic tank has the largest market and majority of cryogenicequipment market revenue come from those tanks.

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Rice Flakes from Broken Rice(Used in Beer Industry)

Rice flakes from broken rice used in beer industries, which is cheap convenient and is aninnovated concept. The product is used in beer industry which finds a prominent place inalcoholic beverages. It has an excellent domestic demand. In India about 32 beer units areregistered with DGTD with a total installed capacity of the order of 132,200 Kilo Litres peryear. The capacity utilization during the last few years has been around 156 percent. So, ithas to be assessed that in the coming years the new unit may come up to productionconsidering the 60% of the total licenses. Similarly demand is increasing day by day to meetthe requirement of indigenous as well as export market.

Formulations of beer manufacturing are done with the view of availability of the rawmaterials in that particular part of the World where the brewery is proposed to beestablished. In most of the parts of the world, barley is universal source of beer extraction.But, beers are manufactured from Chamomile flowers and powdered gingers etc. as well.The manufacturing processes and quality control measure can make the beer nutritious,energy packed and refreshing. Among all the alcoholic drinks beer has become so common.

The Indian beer industry seems to be in upswing mode as 2006 seems to be the best year asfar as the growth is considered. Last year there was a growth of 20% while in the last fiveyears the industry registered a growth of 7 to 8% year on year basis.

The demand and consumption pattern is entirely related to the scope of beer industry inIndia. The market for flaked rice will predominantly consist of buyers from group especiallyof urban and semi-urban areas. Even the people of low-income group can also buy as theproducts are directly consumed along with jaggery and from coconut pieces by rural folk.

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Particle Board from Rice Husk

The large producers account for 15% of the total production, producingsome 38 mn sq. m of plywood and block boards. The ecologicalconsiderations had, however, placed the industry in jeopardy owingprimarily to the restraints put on the use of timber. Alternate materialsfrom agricultural wastes like stalks of cotton and wheat, rice husk andbagasse are slowly getting into the industry as raw material feeds.Kitply Industries, Sarda Plywood, Century Plywood, Novapan, National

Plywood, Green-ply and Jayshree Tea remain the main players in theorganized sector of plywoods and particle boards, which has some 60units. There are several SSI units and other informal sector unitscontributing around 60% of the total production.

Shirdi Industries (SIL) was setting up a plant for the manufacture ofMDF and particle board. The project, which will be India's first and onlyintegrated plant providing complete interior solutions, was being set upat Uttarakhand. It was mainly because of the state government grantingthe company a status, entitling the company to excise duty, income taxand sales tax exemption besides investment subsidy. The company isalso producing pre-laminated board, decorative laminates, floorings,panel door and furniture components from the facility.

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E–WASTE RECYCLING PLANT

WEEE has been identified as one of the fastest growing sources of waste in theIndia, and is estimated to be increasing by 16-28 per cent every five years.Within each sector a complex set of heterogeneous secondary wastes iscreated. Although treatment requirements are complicated, the sources fromany one sector possess many common characteristics. However, there existhuge variations in the nature of electronic wastes between sectors, andtreatment regimes appropriate for one cannot be readily transferred toanother.

The first comprehensive study to estimate the annual generation of e-waste inIndia and answer the questions above is being undertaken up by the NationalWEEE Taskforce. So far the preliminary estimates suggest that total WEEEgeneration in India is approximately 1, 46,000 tons per year. The top states inorder of highest contribution to WEEE include Maharashtra, Andhra Pradesh,Tamil Nadu, Uttar Pradesh, West Bengal, Delhi, Karnataka, Gujarat, MadhyaPradesh and Punjab. The city wise ranking of largest WEEE generators isMumbai, Delhi, Bangalore, Chennai, Kolkata, Ahmadabad, Hyderabad, Pune,Surat and Nagpur.

Almost 50% of the PC's sold in India are products from the secondary marketand are re-assembled on old components. The remaining market share iscovered by multinational manufacturers (30%) and Indian brands (22%).

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Packaged Drinking Water

Bottled water industry, colloquially called, the mineral water industry, is asymbol of a new lifestyle and health-consciousness emerging in India. While alarge segment of the population is struggling to get access to potable watersupply, a new generation - especially in the urban areas - is gettingaccustomed to bottled water paying handsome prices.

The total size of the bottled water market in India is estimated at Rs 20 bn.What is amazing is that people are prepared to pay Rs 10 or more for a litre of'simple' water - especially when the cost of material input is negligible. Thecost of packaging can be as high as 15% to 35% of the price of the product.In bottled water market, the cost of entry and the cost of exit is low. One doesnot require much equipment to make bottled water.

The bottled water market is growing at a rapid rate of around 20% a year(down from 50 to 60%). At this growth rate, the market is estimated toovertake the soft drinks market soon. Multi-nationals Coca-Cola, Pepsi, Nestleand others are trying to grab a significant share of the market. There are morethan 1800 brands in the unorganized sector. The small players account fornearly 19% of the total market.

The growth trends in packaged drinking water and a growing demand isindicative of the fact that water and its variants will be the single largestbeverage category, growing and becoming at least 20 times of the currentmarket size within the next 10-12 years.

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Mini Sugar Plant

India is now the largest consumer of sugar in the world and wasexpected to overtake Brazil in production. Although subject to cyclicalfluctuations, sometimes violent ones, sugar production has grownphenomenally during the last decade. The drop in production andincreased consumption put pressure on sugar prices.

According to Indian Sugar Mills Association (ISMA) production in 2008-09was estimated at 14.7 mn ton against previous year production of 26.3mn ton. The government permitted its trading agencies like MMTC andothers, such as STC, NAFED and PFC to import sugar to control prices.

The Indian Sugar Mills Association had been in favor of futures trading insugar to provide a cushion to the industry once decontrolled. TheNational Federation of Cooperative Sugar Mills, the apex organization of250 cooperative sugar mills accounting for nearly 60% of country's sugarproduction, did not support it.

The government, however, removed all restrictions on sugar exports andpermitted commencement of future trading in white sugar. Futurescontracts are traded in four exchanges, the three National MultiCommodity Exchanges (NMCEs), the National Commodities andDerivatives Exchange (NCDEX), and the Multi Commodity Exchange(MCX), besides E-Sugar Ltd.

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Neutralization of Phospho-Gypsum

Phospho-gypsum is a by-product of the phosphoric acid industry and consists of 65-70 %gypsum, 25-30 % water and 5-10 % impurities, i.e. phosphoric acid and its salts,hydrofluoric acid and its compounds, R2O3 (Al2O3+ Fe2O3), quartz, apatite, alkali, organicmatter, and others. The P2O5 and F impurities are found in three different forms in Phospho-gypsum compound: on the surface of gypsum crystals as water soluble compounds (H3PO4,Ca(H2PO4)2·H2O, H2SiF6), substituted in the lattice of gypsum crystals (effectively solidsolutions of CaHPO4·2H2O, SrSO4 or Na2SiF6) and as insoluble compounds, i.e. apatite andquartz. These impurities, particularly hydrofluoric acid and its salts, contaminate anenvironment.

Soluble phosphates {H3PO4 and Ca(H2PO4)2·H2O} and soluble fluorides had maximuminfluence on the fall of compressive strength of plaster. CaHPO4·2H2O had small influence,but with the present of Ca(OH)2 it had great influence on the plaster properties. The mostimpurities in Phospho-gypsum can be found in the particle size fractions above 160 andbelow 25 µm. There are more than few plants (those of Onoda in Japan, GiulinichemicGmbH , Knauf in Germany, etc.) where the impurities are eliminated by washing Phospho-gypsum with water or separating off coarse and very fine particles. Up to 4 m3 of water isnecessary for 1 ton of Phospho-gypsum. The Phospho-gypsum mixtures are also eliminatedby using a combined method when Phospho-gypsum is washed with a smaller amount ofwater, and the rest of the acid mixtures are neutralized by adding the following additives:Ca(OH)2, CaCO3, K2CO3, KOH, Portland cement, NH4OH, etc.

The acid impurities are not fully eliminated from the Phospho-gypsum crystals. The insolublephosphates {Ca3(PO4)2, Ca5(PO4)3OH} and fluorides (CaF2 andCaSiF6) did not influence theplaster properties. The objective of the work is to investigate the neutralization process ofthe acid impurities of dehydrate Phospho-gypsum into lime suspension.

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Banana Products (Banana Powder, Banana Puree and Banana Concentrate)

Banana is an important fruit crop of many tropical and subtropicalregions of India. It is cultivated in India in an area of 830.5 thousandhectare and total production is around 29,779.91 thousand tons. Mainbanana growing states are Tamil Nadu, Maharashtra, Gujarat, AndhraPradesh and Karnataka.

Banana Puree or Banana Pulp is processed from a selected variety ofbanana grown in the sub-tropical region of South India. The Cavendishbanana puree (banana pulp) obtained from Indian bananas is consideredbest in quality owing to the superior size, flavor, taste and thickness ofthe Indian bananas. Banana Puree is widely mixed into daily food, juices,nectars, drinks, jams, bakery fillings, and fruit meals for children.Banana puree or banana pulp is used as flavor for baby foods, icecreams, yoghurts. Banana yoghurt makes a healthy snack and bananaice cream, milk shakes and delicious desserts are favorites amongchildren.

The demand of Banana Products in market is increasing rapidly due tonutritive and medicinal characteristics of it. India is one of the majorcountry producing banana and its derivatives. Banana Derivativesincludes: Puree, Ice-Creams, Fruit breads, cakes, tarts, muffins, pie-fillings, icings, donuts, fruit bars, milk shakes, yogurts, puddings,toppings, deserts, baby food, etc.

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Integrated Unit Textile Mill and Readymade Garments

The textile industry occupies a leading position in the hierarchy of the Indian manufacturingindustry. It was estimated to contribute 14% to industrial output, 4% to GDP and about 11%to India's export earnings. Besides, it provides direct employment to over 35 mn people andis the second biggest employer. Its direct linkages with the rural economy, being dependenton fibre crops, is also closely linked with diverse crafts, such as those using cotton, wood andsilk and handlooms employing millions of farmers and craftsmen in rural and semi-urbanareas.

In the global context, the industry accounts for 61% of loomage, 22% of spindle age, 12%of the production of textile fibres and yarn, and 25% share in the total world trade of cottonyarn. The industry is made up of small-scale, non-integrated spinning, weaving, finishingand apparel-making units as well integrated composite mills. Of the nearly 2700 unitsengaged in spinning yarns, 1135 are small scale. The weaving units numbering 4.8 mn haveonly 10,000 units in the organized sector, while the rest are engaged in handlooms (3.9 mn)and power looms (1.8 mn). Of the 3,300 processing units, nearly 2,100 are independentsmall units, while the fabricators of garments number 77,000 small scale units.

The Indian clothing market for readymade garments is estimated at over Rs 1000 bn withmen's wear segment accounting for 46%, while the shares of women's and kids' clothing arepegged at 36% and 17%, respectively. The Indian branded garment market, which isestimated at over Rs 200 bn, accounts for over 26% of readymade market. Following theentry of several new brands, the branded segment has grown at 25% annually. Thisrepresents a shift from unbranded to the branded segment.

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Cattle Feed

Cattle feed is a peculiar product consumed mainly by cattle owners ofrural area. Animal industrial enterprises in all area and so, the market forcattle feed is very scattered. The consumers are living by and large inpoverty and so they have hardly enough finances to spare for cattle feed.Yet cattles are the only source of earring in many cases and to increasetheir own earning they try to spend upon cattles as much as possible.

Unawareness about the product and its importance should also be lookedafter. The benefits of this scientifically prepared cattle feed overtraditional feed has become as popular as they should be. The problem ismuch of replacing unscientific feeding system with scientific feed.

India has the largest cattle, buffalo and goat population according tolatest census. There are about 200 million cattle, 50 million buffaloes and90 million goats in the country. About one sixth of the cattle, about halfof buffalo and one fifth of goat population in world are in India. Animalhusbandry plays an important role in the national life and accounts forabout 10% of the national income. In particular the contributor of thecattle and buffalo to the economy is considerable. They are the mainsource of drought power in agricultural operations and ruraltransportation they provide essential, foods like milk and meal.

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Power Transformer

Electric equipment industry contributes over 2% of GDP which is projected toincrease to about 12% in 2015 according to a study by Frost & Sullivan.During the period, consumption of electrical equipment is estimated toincrease from over USD 28 bn now to USD 363 bn, growing at a CAGR ofabout 30%. It is also expected that during 2010-2015, the Indian equipmentmanufacturing will grow at 5.5 times the growth rate of global electronicequipment production.

The electrical industry has been showing signs of recovery after poorperformance in the recent years. The domestic electrical industry, whichincludes equipment for generation, transmission, distribution and use of powerin industrial units, constitutes a major part of the electrical products.

The entry of private sector in the power area and the emergence of captivepower plants have changed the scenario for the transformer segment. Earlier,the business revolved around power utilities such as the State ElectricityBoards. As against this, the customers in the private sector prefer contractingout the entire substation to a single vendor, in the process thus reducing costsas well as avoiding problems of logistics.

Four major players in electrical equipment segment recorded high growth ofturnover over the previous accounting years: ABB (44%), BHEL (29%), BHELPower Solutions (144%), Havel’s India (55%), and Kirloskar Electric (43%)Crompton Greaves (32%) and Suzlon Energy (42%). The growth of bottomlines was equally impressive ranging from 12 to 55%.

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Aluminium Alloy from Scrap and Virgin Metal

India's share in world aluminium market is estimated at around 3%.India ranks fifth in bauxite production after Australia (62 mn tons),Guinea (17.50 mn tons), Brazil (16.20 mn tons) and China (10.75 mntons). With a total output of 9.25 mn tones, the country contributesabout 6% of the world's total production of 159 mn tones, India holdsthe fifth position in reserves base and is ahead of China with 2300 mntones. India ranked seventh in alumina production with a total output of3 mn tones, a share of nearly 5% of the global production of 61 mntones.

In the domestic market, the demand of aluminium is expected to touch1.5 mn ton by 2015-16. Domestic demand for aluminium foils in 1999-00was of the order of 41,000 ton. It had gone up to 62,000 tons by 2003-04 and to 76,700 tons in 2006-07. It is projected to reach the level of100,000 ton by the end of the decade. Foil users, such as thepharmaceuticals, processed foods and telecommunication sectors, havebeen showing healthy growth. Aluminium foil industry is growingannually at around 7%. In the near future, with the phenomenal rise indisposable incomes, the foil industry is expected to receive a boost.Working couples, for instance, increasingly pack their food in aluminiumfoils. The growth in demand is expected to follow the increasing demandnoticed in China.

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PVC Flex Banner(Frontlit, Backlit & Vinyl)

This market is booming with 25-30% annual growth and is worth around Rs500-600 crores. The Signage Industry is witnessing robust growth in Indiawith strong and steady economic growth. More and more MNC’s are coming toIndia, branding has become an important aspect in every segment. Signage,LED & Showroom Display plays a very important role in each and everybusiness.

Indian industries will surely take the market by storm. Being based in India,they’ll provide the best after sales support and assistance to their clients. Thiswill consequently affect the Korean and Chinese markets in India, as ourproducts would have an added advantage of local presence.

In India advertising industry is worth more than 3.5 billion US dollars annuallywith a growth rate of approximately 20% per annum. With healthy growth, themarket for fabrics used in signs and outdoor advertising would appear to beattractive to India's industry, but few local companies are manufacturing thetextiles and Chinese imports dominate, Out-of-house (OOH) publicity hasbecome an important component of almost every company's marketingstrategy. Even sectors that were once shy of spending on advertisingcampaigns - such as banks, hospitals, education institutes, oil companies,cement manufacturers and real estate developers - are now among the largestspenders on OOH publicity in India.

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Ferro Alloys

The demand for ferro alloys has been increasing with that of alloy andspecial steels. At the beginning of the previous decade, it was about half-a-million tonnes, increased to over 700,000 tonnes by 1997-98 andreached the level of 1.20 mn tonnes in 2006-07. There are six leadingplayers and over 30 small producers. The industry has tied up withcompanies in Europe for technology inputs.

The major users of alloy steel are: auto industry, railways, forgings,tubes, springs and other engineering industries.

The leading players are Alloy Steel (SAIL), Mukand (Advanced DesignMaterials Corp., USA), Mahindra Ugine, Sunflag Irons & Steel,Vishveshvarya Steel, Kalyani Steel, Panchmahal, Indian Seamless, ShahAlloy Kalyani Carpenter, Garg Furnace.

Ferro manganese along with Fe-Si, Fe-Cr, is a bulk ferro-alloy,Manganese is also added in steels in the form of silico manganese. Itdissolves in iron in all proportions, Iron for Farm implements uses up to1.75% Mn and also in automobile parts. Ship construction industry usessteels with even higher content; riffle barrels and heat treated forgingsnecessarily use ferro manganese as an alloying additive.

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PHARMACEUTICAL UNIT (Automatic Plant of Tablet and Capsule)

The Indian pharmaceutical industry is the fourth largest in the world in terms of volume ofoutput and thirteenth in domestic demand. However, the Indian industry, valued at USD 17bn in represented just over 1% of the global pharmaceutical industry in value terms. Thedomestic market is estimated at Rs 680 bn.

According to a study by McKinsey, Vision 2010, the domestic pharmaceutical industry couldattain a size of USD 25 bn (Rs 1200 bn) by 2010 by focusing on two areas: first, innovation-led research, development and new drug discoveries; and second, information technology-led remote sales and marketing. Incidentally, according to another report by AssociatedChamber of Commerce (ASSOCHAM) in India, the market is estimated to grow to moremodest level of USD 9.5 bn in 2010).

The Indian firms produce nearly 60,000 generic brands in 60 therapeutic categories andbetween 350 and 400 bulk drugs. India's drug market consists mainly of second and thirdgeneration drugs no longer subject to patent protection in the developed world. AlthoughIndia is the world's leading producer of generic drugs, its annual per capita consumption ofpharmaceuticals has been among the lowest placed approximately at USD 4.50 per personas compared to USD 820 in the United States and USD 13 in China.

India has the highest number of (US Food and Drug Administration) USFDA approvedmanufacturing facilities outside the US and this puts India in good position to export toregulated markets.

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