Aluminium Foil 1986

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    EXECUTIVE SUMMARY0.1 PRODUC T AN D ITS MARKET0.1.1 BASIC METAL ALUMINIUM

    The Aluminium metal processed in various forms has been found tobe suitable for a variety of dom estic and industrial us es The reasons of itsusage in wide range of shapes and sizes can be found in physical andchemical properties of this metaL The most significant properties of thismetal are:i) amenability to thermal and mechanical treatments or malleability,

    ii) lower specific gravity,iii) good conducting properties-thermal and electrical,iv) can be alloyed to obtain desired improvements in strength,v) resistant to chemical attacks

    It has been possible to process this metal in various forms to obtainthe products with the requisite properties Thus, although the earlierusage of Aluminium was restricted to pots and pans, Aluminium is nowbeing used for a variety of uses like in aircraft, electronics, roofing, pac-kaging, building industry, etc.0. 1. 2 PRODUCT - ALUMINIUM FOIL

    The Foil is a continuous web of aluminium metal rolled to thicknessranging from 0.005 mm to a maximum of 0.15 mm. Foil is available inmany forms, Le., hard, soft (annealed), lubricated, non-lubricated plain,coated, coloured, printed, embossed and laminated to a variety of paperand synthetic films0 . 1 3 PROPERTIES OF ALUMINIUM FOIL

    Aluminium foil has significant properties as given below:i) good thermal and electrical conductivity,

    (iv)

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    ii) good formability,iii) imp erm eability a nd non-abso rptivity to water, gre ase , oil & light;iv) odourless and tasteless,v) good adhesion to a variety of compounds,

    vi) excellent printability,vii) resistance to oxidation and chemical attacks

    Owing to these properties, aluminium foil is preferred to other packag-ing materials as flexible materials cannot match these characteristics ofaluminium foiL0.1.4 APPLICATIONS

    The foil is used for packaging of many products, some of which aregiven below: Pharmaceutical tablets Bulk & unitized packin g of tea an d coffee Prepared meals Bakery products Frozen meat, fish Milk bottle c ap s Wine Lube Oil , greases Powdered milk Confectionery Biscuits Photographic film Gift wraps Household wraps Butter, margarine Cigarettes

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    0 .1 .5 CHAR ACTERISTICS O F ALUMINIUM FOIL MARKETThe applications of Foil could be divided into two major groups Lepackaging applications and non-packaging applications Packagingapplications include the products given above For these products, the

    requirement of packaging is such that it should protect the product fromphysical and chemical changes and climatic hazards Non-packagingapplications include heat exchangers tube fins in air conditioners,capacitors and cable wraps, in which specific properties of the foil such asconductivity are us edAs compared to other flexible packaging material, aluminium foil hasproved to be the superior material as far as protection of material, con-venience in usage and surface finish are concerned. However, in India,aluminium foil has proved to be costly because of higher price of basicmaterial an d higher excise duty. Many a tim e, it is not available in requisite

    quantity.Owing to the high price and uncertain availability of the foil in the|i>ast, many of the user industries like pharmaceutical industry switchedover to other packaging material such as glasine poly laminate Somecompanies introduced blister packs and some companies reduced thick-ness of the foiL Circumstances have thus proved that usage of packagingmedium for consumer items depends on its availability, price, and shelf-life desired for the product Depending upon the situation, the appropriatepackaging medium is selectedThe usage pattern, being very sensitive to price and availability, keepson changing from time to time depending upon the economies of usageof aluminium foil vis-a-vis that of other materialsIn India aluminium foil industry, there are frequent changes in theusage patterns and specifications of foils, as compared to the foreigncountries and therefore, the usage of the foil has remained restricted invariety as well as in quantitative te rm sThe growth of foil industry, has thus not kept pace with the growth of

    its major user industries The past production of foil shows an overallgrowth rate of abo ut 7% only.

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    0 .1 .6 SUPPLY OF ALUMINIUM FOILAt present, there are three foil plants in operation and two are underimplementation. The present Licensed and Installed capacity, and produc-tion of these units are a s follows:

    (Figures in Tonn es per year)Manufacturers

    INDALIFLPGFBALCOTotal

    Licensedcapacity

    400055001500500

    11500

    FOILInstalledcapacity

    400046903000500

    12190

    Production1986(estimated)3 6 0 0 '5000

    4 8 2 .9082

    Remarks

    Plants inOperationsClosed at present

    IFL 1750CONTAINER SHEET

    1500 500Th e capac ity u tilisation at IFL was 16% followed by INDAL at 90%. Thecapacity utilisation of PGF w as only 16%.The licensed capacities of the two new upcoming units are as below:

    Licensed Capacity (tpa)Annapurna Foils Ltd (AFL)Synthiko FoilsTotal

    30007203720

    The PICUP/HINDALCO project for 5000 tpa project is understood tobe under active consideration for implementation,(vii)

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    The imports of foil during the period from 1983 to 1986 were asfollows:Year1983198419851986

    T o n n e s245558200367

    Imports of foil are mainly for its usage in electrolytic capacitors andcable wraps. S u p er purity alum inium foil (99.99% purity) is also im porte dby the user units engaged in etching of aluminium foiLThe indigeneous supply has been confined to India Foils Ltd. (1FL)and Indian Aluminium Co. Ltd. (INDAL). IFL is a pioneer unit in thisindustry and has had highest share in total production throughout its exis-tence Both the companies have se t up their plants with fore ign technicalsupport through their principals and have established the manufacturingfacilities during the last 15-20 years The third plant viz. P.G. Foils Ltd.(PGF) was set up with second-hand plant and machinery, at a remoteplace in Rajasthan. It had m an ag em en t as well as technical pro ble m sfrom i ts inception and h enc e could not m ake any dent in Indian m arke tIFL has practically developed all the products for different applicationsof foil in India alongwith the gradual increase in the capacity. It also hasplans for expansion, modernisation and a plan to set up a separate pro-

    ject for asceptic packaging. New applications of foil such as foil-jutelaminate for bulk packing of tea etc are being developed.Annapurna Foils Ltd (ASL) and Synthiko Foils Ltd(SFL) are the twopro jec ts under imp lementa t ioa SFL based on ind igenous technica l kno whow was expected to co m m en ce p roduction in July 87 . AFL has however ,the latest plant being supplied by "New Hunter Engineering" (NHE).The capacity of Synthiko Foils Ltd (SFL) is very small (720 tpa). Thisunit is promoted by Synthiko Group and a technocrat having long

    experience in foil manufacturing. Pradeshiya Industrial Corporation ofaP.(PICCIP) is likely to set up a new foil plant with HINDALCO as the jointsector partner. It is unde rstood that this unit m ay com m en ce com m ercia lproduction in ear ly 90s

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    0.1.7 DEMANDThe present indigenous demand for the foil has been estimated to beabou t 9000 tp a The sectorwise estimates are given in Table 0.1 . It can beseen from the table that drugs and pharmaceutical sector accounts for

    almost 40% of the total demand Among the other sectors, the tin con-tainers, chocolates, cigarettes, biscuits, are the major foil consumingindustriesOut of the total user sectors, some are expected to grow fast, someare expected to remain stagnant while growth of some is likely to declinein future. The growthwise classification of user industries is indicatedbelow :

    Feist Growth St ag na nt / DecliningSlow growingDrugs & Pharmaceuticals Tin containers MilkChocolate TeaCatering Services Air ConditionersSoa ps Power capacitors 'Lamitubes CigarettesFlexible packaging Ch eese / butterof food items

    The growth prospects of drugs & pharmaceutical industry is veryimportant from the point of view of foil industry as the share of this sectorin total demand for foil is very high. The price rationalisation and revisionunder the new drug policy, is expected to result in a higher growth rate forthis sector.Due to popularity and convenience of food items, the flexible packag-ing sector is expected to grow very fast The use of casserole trays inRailway catering services has been started recently and due to the con-

    venience in handling, the usage is likely to increase Lamitubes are recen-tly introduced in Indian market and are likely to replace collapsible tubesin certain user sectorsHence, a higher growth of Lamitubes is considered in the future. Inchocolate industry, the major share has been captured by HindustanCocoa Products Ltd This unit had restriction on expanding its capacity.

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    Table 0.1

    ESTIMATED DEMAND FOR ALUMINIUM FOILS

    S r.N o.1.2.3 .4.5.6.7.8.9.

    10 .11.12 .13.

    14 .15 .16 .17 .18 .19 .

    Sectors

    Drugs &PharmaceuticalsTin ContainersChocolatesCigarettesBiscuitsCatering ServicesTea PacketsContraceptivesMilkTea Chest LiningsCheese & ButterSoapsRoom Aircon-ditioners & WaterCoolersLamitubesFlexible packaging(Misc.)ElectrolyticcapacitorsMFD & PowercapacitorsCablesOthersTotal

    1986

    39008 0 03 5 07 0 03 5 02 0 01004 0 02 0 02 5 03 0123 0 0

    5050

    6 5 01502 5 02 5 08992

    19874290

    8 1 64 0 27 3 53 8 52 4 01044 6 02 7 03 1143 2 1

    1206 0

    7 1 51502 8 82 6 8

    9669

    19884719

    8 3 24 6 27 7 24 2 32 8 81085 2 92 9 23 2173 4 3

    2 0 07 27 8715 03 3 02 8 6

    10642

    19895191

    8 4 95318 114 6 53 4 61 126 0 83 1 53 42 03 6 7

    2 5 086

    8 6 61 503 8 03 0 6

    11687

    19905710

    8 6 66 1 18 5 251 14 1 51166 9 93 4 03 62 43 9 3

    3 0 01039 5 31504 3 73 2 8

    12844

    19916281

    8 8 37 0 38 9 55 6 24 9 81218 0 43 6 73 92 94 2 0

    3 5 01241048

    15 05 0 33 5 1

    14128

    1 9 9 26909

    9 0 18 0 89 4 06 1 85 9 81269 2 43 9 64 2

    3 54 4 9

    4 2 0149

    11531 505 7 83 7 5

    15571

    1 9 9 37600

    9 1 99 2 99 8 76 8 071 713 1

    10634 2 84 54 24 8 0

    5 0 0179

    12681506 6 54 0 1

    17184

    1994

    83609 3 7

    10681036

    7 4 88 6 013 6

    12224 6 24 95 05 1 4

    5 2 02 1 5

    13951 5 07 6 54 3 0

    18917

    1995

    91969 5 6

    12281088

    8 2 310321411405

    4 9 95 36 0

    5 5 0

    6 0 02 5 8

    15351 508 8 04 6 0

    20914

    Note: The above demand estimates are made on the basis of usage of aluminium foils in some sec-tors and the projected growth rates of these sectora The limited availability and high prices ofaluminium foil vis-a-vis substitute packing materials have slowed down growth of demand ofaluminium foils in some sectors. On the other hand there are expectations of higher demand growthrates from sectors like food processing on whose development special empharis is placed Because ofthese reasons, there are a number of demand estimates which vary widely from each other; from aslow as 15000 tpa to 26000 tpa by the year 1995.

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    However, recently their capacity of chocolate plant is doubled and hencein the last 2 years, consum ption of foil by them has increased substantial-ly. This trend is likely to continue in future. Composite containers arelikely to replace tin containers and hence this sector is likely to grow at aslow pace In the case of milk, usage of bottles is prevalent in Bombayand in few other schemes in Maharashtra However, it is envisaged thatthe use of bottles in Maharashtra would also be discontinued in the nextone or two years Hence, consumption of foil for milk bottle caps woulddecline to zero in the near future

    The an nual d em and for foil is estimated to increase from present levelof 9000 tonnes to about 13000 tonnes by 1990 and to about 21000 ton-nes by 1995. These estimates are based on existing application patternsand likelihood of growth prospects of user sectorsWith the likely commissioning of AFL & SFL (total installed capacity

    3720 tpa), the availability of foil would improve substantially and therefore,development of new applications will not be constrained due to betteravailability.It is envisaged that the new applications in the following areas couldbe developed in future These developments would affect the demand foraluminium foils favourably.

    Asceptic packaging of fruit juices, milk shakes, fruit pulps, sweetened-milk, etc Com posite containers for malted food, baby food etc. Flexible pouches for edible oils Mew applications for casserole trays Packaging of ready-to-cook/use food

    On the export front, performance has been very poor. This isattributed to poor quality of indigenous foil, high price & uncertainavailability. Th e export for the last three years w ere :Y ea r T o n n e s1 9 8 4 3 9 81 9 8 5 3 1 91 9 8 6 1 69

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    At present only IFL exports the foil to the nearby countries likeBangladesh and Sri Lanka Such exports are obligatory and in fact, IFL, inthe real sense, cannot compete in international market in view of qualityas well as price factors.0 .2 PR OCE SS AND TECHNOLOGY DEVELOPMENT0 . 2 . 1 P R O C E S S

    Aluminium obtained from electrolytic reduction method is remeltedand refined and cast into rectangular slabs The slabs, after surface treat-m ent, a re ho t rolled to foil stock of thic kn ess 0.4 m m to 0.8 m m . Th e foil-stock is then annealed and softened.The foil of uniform gauge and desired tolerance is made by subject-ing this foil-stock through a series of cold rolling passes, on one or a

    number of rolling mills The minimum thickness to which the foil is cold-rolled, is 0.006 mm, achieved through pack rolling, Le., rolling of two foilstogether.At the end of cold rolling operations, the foil is annealed in order tofully soften it and impart the characteristics like dead fold and easyworkability. Annealing also burns off the oil left on the foil surface. Anneal-ing thus makes the foil free from oil and fully sterileThe annealed foil , is then subjected to the various treatments as perr eq u i r emen t s :a) Se pa rat ion of pa ck rolled foils,b) Slitting to desired widths, including ed ge trim ming ,c) Embossing,d) Sheet making and cutt ing to length,e) Application of adhesive s, wax, lacq uer etc.,f) Lamination with paper, paper board, LDPE,g) Single or multicolour printing,h) Slitting of laminated composite,

    (xii)

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    i) Packing in desired lengths or weightsThere are small scale foil processors, who specialise in particular foiltreatment activity such as slitting, printing or sheeting operation for particular users, eg., pharmaceutical units, confectionery units etc.

    0.2 .2 TECHNOLOGY DEVELOPMENTSAs a result of need for cost reduction and productivity improvements,developments in casting and rolling technologies have taken place over afew decades Strip casting technology, developed in the last decadeabroad, offers metallurgical advantages over the conventional slab castingand hot rolling route. Further, operational flexibility offered in terms ofpossible variations in width changes, in alloy compositions, coil weightand thickness of strip, brings in substantial gains at the subsequent foilrolling stage These gains are lower inventory levels, lower material

    losses in rolling and improved productivity.In developed countries, rolling technology underwent various stagesof development such as pack rolling, strip rolling, two-high rolling, three-high rolling, four-high rolling and lastly the development of universal foilmill All these technologies were developed, in stages, with a view toimproving the productivity and yield, so that technical and cost com-petitiveness could be ensured. The development of universal foil mill(CIFM) enabled single installation of high production plant with in-builtflexibilities, thereby reducing the capital investment earlier required formultiple units. This mill is equipped with a variety of on-line control andfeedback systems to ensure smooth and automatic production function.These UFMs are presently capable of rolling foil in width upto 2100 mm,with coil weights upto 20,000 kgs at a maximum speed upto 2500 m/m ia

    0 .3 TECHNOLOGY ST AT US OF INDIAN INDUSTRY0.3.1 EQUIPMENT

    As mentioned earlier, the following units are now in regular produc-tion of various types of foil and its derivatives:

    India Foils Ltd (IFL)Indian Aluminium Co. Ltd (INDAL)P.G. Foils Ltd (PGF)(xiii)

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    In addition, plants of the following companies are being set up.An napu rna Foil Ltd. (AFL)Synthiko Foils Ltd, (SFL)In the case of IFL, alongwith old equipment installed over a number of

    years, new facilities suc h as four high rolling mills, 6-colour rotog ravu reprinting machine, foil separator, double spindle slitter, annealing furnacesof 1 tonne and 7 tonnes, lacquering machine, gum laminating machine,have been added. In 1987-88, IFL proposes to add GFM and newmachines for printing, laminating, extrusion coating and gravure cylinderprocessing. Thus, IFL has now old as well as new facilities of a variety ofnatureIn the case of P.Q. Foils, majority of the equipment was brought in assecond-hand equipmentBoth these units presently have a number of machines of smallercapacities This can result in imbalance in capacities for processingoperations in which case the individual special purpose machines wouldnot be optimally utilisedThe particulars of the facilities of SFL and INDAL are not available Itis understo&d that INDAL has an advantage of in-house manufacturingfacilities for slab casting and hot rolling the same into foil-stock ofrequired width. It is further understood that a new cold strip mill of 1425mm width h as been supplied by Davy Mckee of (IK. alongwith VIDIPLANfacility to INDAL in 1982. Earlier in 1981, one foil separator of operating

    width of 1100 mm has also been procured from Schmutz. These briefdetails indicate that the widest foil mill in op eration at p resent is at INDALA cold strip mill has also been installed for rolling foil-stockThe facilities of AFL have the recent technical developments dulyincorporated by NHE. The total cost of project works out to about Rs.2775.00 lakhs.The installation of new facilities at IFL will ensure improved productquality and operational flexibility while AFL will have technical advantage

    through better facilities0.3 .2 ECONOMIES OF INVESTMENT

    The analysis of costs of IFL, presented in Chapter 3 brings out the factthat marginal improvement in yield or processing cost will not be enough(xiv)

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    to sustain the new investment The incidence of raw material cost andexcise duty makes the operation susceptilble to low profit margia Theonly way out, therefore, is mass scale productioa However, under theexisting conditions, it may not be sustainable unless export possibilitiesare explored0. 3 .3 RAW MATERIAL

    The main raw materials required for the manufacture of foil are thefoil-stock, paper, polyethylene, dyes, lacquers, thinners etc Foil-stock,used as raw material, is available in the country. IISDAL, H1NDALCO cansupply foil-stock of required quantity. Bharat Aluminium Co. Ltd.(BALCO) is another producer. With National Aluminium Co. (NALCO)coming on stream, smooth supply of foil-stock of requisite with and puritycould be ensuredThe finer the grain size of the foil-stock better is the performance ofthe light gauge foiL If the foil is rolled down to 0.006 mm from the poorquality foil-stock, numerous problems, such as pinholes, foil breakage,permeability to liquids, light etc., arise. The overall yield in the present foilplants is around 70% The main reason for high level of wastage (around30%) is poor foil-stock quality. This is also one reason for poor exportperformanceThe problem of wastage would be more serious when the existingunits are modernised or new mills are commissioned The rate of rejec-

    tions would increase as the modernised units or new plants would bedesigned to operate at higher speeds, resulting in more frequentbreakages of foils. This problem could be minimised by upgradation ofexisting slab-casting-hot rolling route, or introduction of continuous cast-ing route, which would improve quality of foil-stock resulting in finer grainstructure, uniform physical properties across the width and along thelength of foil-stock as also the lower level of oxides and impurities. Otheralternative is to import the foil-stock till new technologies are stabilisedand availability of good quality of foil-stock is assuredThe super-purity foil, used after etching in electronic components, is

    of 99.99% purity and is not manufactured in India It has to be importedtotally, for direct use0.3.4 COLLABORATION

    1FL and INDAL have no formal technical collaborations but haveaccess to latest technological developments through their foreign prin-(xv)

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    cipals,whereas PGF and SFL have gone ahead without any foreigncollaboration. The only formal technical collaboration, reported so far hasbeen arranged by AFL, having joined hands with M/s. Mew HunterEngineering. The collaboration includes supply, erection and com-missioning the entire equipment technical know-how and training oftechnical personnel. Alcan Aluminium Ltd. (being a shareholder of1NDAL) and Alcan group and its British counterparts have beentechnically associated with 1NDAL0.3 .5 RESEARCH & DEVELOPMENT (R&D)

    In foil industry, R&D is basically restricted to the product developmen-tal activities. Special R&D facilities or sponsored research projects areabsent in all com pan iesThe developmental work carried out by 1FL and INDAL are given

    below:I) IFL tea chests blister and strip packing for Pharmaceuticals pouches for food items wraps for biscuits and choco lates capacitors and condensors telecom cable wraps lamina tes for flexible packaging thread in currency notesNew products under development a re : packag e of lube oil cooling oil shrikhand tetrabrick for soft drinks

    Process improvement relates to wet tension control, matching themulticolour prints, ink quality, viscosity, e tc

    (xvi)

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    II) IND ALThe process product development activities of INDAL, during the lastfew years a re :

    blister packs for pharmac euticals uses, cable wrap extrusion laminated foil cigarette carton warp food trays lid foil for polystyrene containers condensor foil rolling and annealing wax coating for biscuit wrap in line corona treatment increased foil width (from 1050 mm to 1130 mm)

    The other developments include standardization of indigenous rawmaterials (including IPCL made polyester granules), improved sealabilityand printability of pharmaceutical foils, removal of odour from printedfoils etc (INDAL's R&D activities are presented in Table 3.5(c).The product developments and p rocess improvements have helped inextending the usage of foil to a variety of purposes However, the effortsfor improving the consistency in product quality and printing quality havebeen inadequateThere is definite scope for introduction of new technologies eitherindigenously developed or bought from foreign parties in order to offerbetter prod ucts an d a s per desired delivery sched ules so that exportabilityof foil prod ucts could b e im proved

    0 .4 TECHNOLOGY ABSORPTION EFFORTS0.4 .1 TECHNOLOGICAL GAPS

    As explained earlier, technological advances made in India relate tomarginal modification to old equipment and piecemeal installation of newfacilities Technology employed in most of the cold rolling mills, presently(xvii)

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    in operation is quite old and dates back to '60s, resulting in poor produc-tivity of foil rolling millsTechnologcal status in India has remained more or less stagnant inthe sense that little has been achieved through genuine Indian contribu-tion towards product quality or design and development of better facilities

    The development efforts are more or less duplication of the effortsalready made by foreign producers. Even these efforts have been restric-ted due to older equipment and poor quality of foil-stocka) Th e review of technological statu s in Indian Foil industry Indicates thatupgradation modernisation of existing plants or installation of new plantsmust aim at :

    i) improvem ent in prod uct quality and its consistency,ii) inc rease in productivity of mills,

    iii) reduction in inplants losses to redu ce cost,iv) increase in the availability of foils in various forms for critical mass-consumption usages,v) improvem ent in the exportability of foils

    b) Technological gaps as identified a re :i) Process im provements required for improving quality of foil-stock

    ii) Standardisation of process of continuous strip casting for attainingbetter quality of strip and consequently foil-stockiii) Alloying and refining processes used while treating liquid aluminium,iv) Automation of foil rolling mill process incorporating control of thick-ness, flatness, roll contour etc.,v) Foil mill auto mation for roll changing, spool transfer, coil transfer,

    vi) Automation of foil processing equipment for web-tension control andquick coil transfer,vii) Multifunctional and multi- configuration orien ted foil-processingequipment,

    (xviii)

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    vili) Development of quick drying inks, adhesives and lacqu ersThese gaps have been caused due to apparent isolation of foil indus-try from other sectors such as engineering, electronics etc. Wherein thetechnology developments have made considerable strides that could havebeen put to use for upgradation of foil technology through modifications/improvement in plant facilities.

    0.4 .2 TECHNOLOGY UPGRADATION EFFORT SThe details of the technological upgradation efforts required to bridgethe gaps through indigenous efforts and equipment/technology importsare given in Table 0.2. In addition, e quipm ent manufac ture in India, u se ofimported foil-stock for improvemen t in performance of existing mills, sup-porting the jobbing oriented small scale sector, etc. are a few other sug-

    gestions for making indigenous efforts gainfuLIt is to be noted that the proven design features and the on-lineaccurate measurements and feedback control systems on new mills ena-ble the m ills operation at a very high s pe ed Similarly, the sturdy milldesigns, developments in roll coolant and flatness sensing techniqueshave enabled increase in the foiling width to around 2000 mm .The efforts are also required to optimise the productivity of foil millthrough minimum setting time, lesser down-time and long duration roll-ing passes Such improvements can be incorporated in the existing foil

    millsThus, the alternatives available to existing units are either to moder-nise the old mills or to install a new equip m ent Considering the marketsituation, modernisation may be appropriate However, it is not essentialto install very high speed and wider foil mills in India, as the investment insuch mills will be high and returns will be poor due to possible poorutilisation of the mill If the demand grows at the faster rate and better rawmaterial is available, such an investment may be justified However, if theexport is the main aim, the investment will be worthwhile (provided goodquality raw material is also available at internationally competitive prices).0.4.3 SMALL SCALE PROC ESSORS

    As the large foil producers cannot cater to the specific small quantityrequirements, it will be essential to encourage or support small unitsengaged in jobbing type work Adequate support to these units can con-tribute substantially towards the im provement in custo me r service

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    T a ble 0 .2TECHNOLOGY UPGRADATION EFFORTS(PROPOSALS IN BRIEF)

    Particulars In d ig e n o u s Efforts E q u ip m en t /T e c h n o l o g yIm po rt s

    Process improvement forfoilstock manufacture (Slabrolling)

    2. Strip caster operation Stan-dardisation of operatingparameters Alloying andrefining process

    Review foil stock specifications.Investigate process drawbacksat INDAL7H1NDALCO/BALCO. Indicate need for spe-cial facilities to meet specificrequirements (eg . mel t ingrefining etc) Identifyeconomics of installing thesefacilitiesConduct trials to establishrelationship between variouscasting parameters and thecle an line ss/ solidification pat-terns Establish the gains ofsuperior product, in terms ofwastage & cost reductionEsatb l ish process parametersfor different alloy composition.Indigenise equipmentmanufac tu re

    Metal deoxidation, refin-ing and degassing pro-cess know-how andequipment for the same

    Import of engineeringand operational know-how for continuous s tr ipcaster. Import of specialpurpose proprietaryequipment for refiningand process control. Performance guaranteeessential.

    Foil Millautomation p roces s

    Foil Mill material handlingau tomat ion

    Improved mechanical , e lectrical, hydraulic systems

    Indigenisation of components(eg. electronics, control panelse t c )

    Aim for minimising mill down-time Indigenisation of equip-men t manufac tu re- d o -Retire/replace mills which can-not be modified

    Feasibility of installationon existing units Systemdesiga operational train-ing and import of specialpurpose proprietaryequ ipmen tSystem designs forspecific mills with perfor-m a n c e g u a r a n t e eFeasibility of modifyingthe existing millsSystem design, importof critical componentswith performanceg u a r a n t e e

    (XX)

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    Particulars Indigenous Efforts Equipment/TechnologyImports6. Autom ation of foil process-ing units

    7. Multifunctional and multi-configuration equ ipm ent

    8. Development of quick dry-ing materials9. Integrated know-howtransfer.

    Identify specific parameter/equipment to be modifiedIndigenise componentmanufacture

    Identify market needs andestablish feasibility of newinstallations.Indigenise componentmanufactureIndigenous production aftergetting know-how.For existing or new plants.Indigenous nature ofequipment

    Equipment suppliers tostudy automation mod-ernisation possibilities,identify limits ofautomation.Essential equipmentimport System designwith supply of specialpurpose/ proprietarycomponents/systemsMaterial productionknow-how.Total engineering andknow-how transferarrangement withdetailed performanceguarantee

    0.4 .4 FINANCE FOR UPGRADATIONIt is suggested that existing policies of special consideration for mod-ernisation and technological upgradation should be extended to foilindustry.

    0.4.5 MANPOWERThe existing units have a num ber of experienced an d trained technicalpersons However, for successful technological absorption of newtechnologies, it is advisable to train the technical staff at the equipmentsuppliers' plant

    05 CONCLUSIONSTo sum up, it can be said that the immediate thrust areas fortechnological upgradation of foil industry are:

    i) improvement in quality of foil-stock a nd(xxi)

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    ii) productivity improvem ent in foil rolling mills operatio nsThe retarded developm ent of foil industry can b e attributed t o :

    i) poor foil-stock qualityii) high price of foil-stock

    Hi) inadequate and uncertain availability of foilsiv) old machinery,v) high excise duty incidence

    vi) slow growth of dome stic market andvii) non-exposure to export market

    Owing to these factors, the technological development of the industryhas been quite slow.

    0.5 .1 RECOMMENDATIONS FOR SHORT TERM ACTIONSa) Non-Technical

    i) Need of the industry of foil-stock for imm ediate productivity andquality improvem ent, should be met on priority.ii) Duty struc ture for foils/ compo site s u sed for critical hygienic foodand drug packing appliances, should be such to promote use of thefoils

    Hi) Consider making available imported foil-stock for fulfilling exportobligationsb) Technical

    i) Encoura ge small scale sectors for processing foils and co m po site sii) En cou rage ancillarisation of such small proc esso rs by the large foilconsumers

    (xxii)

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    iii) Review technology of the existing foil mills with a modern isation orfor deciding on replacem ent by new millsiv) Foil manufactu rers should obtain full specifications of rolling millsand their sub-assemblies/components for indigenisation of sparesv) Review the existing technology transfer arran gem ents for the benefitsaccrued and modifications of terms and conditions for transfer ofnew technolog ies effectively.

    vi) Provide for training of technical personn el at the plan ts of reputedfoil manufacturers or plant manufacturers, while allowing technologytransfer for existing as well a s new sc he m esvii) Foil manufactu rers should indigenise plant spa res and incorporateautomisation systems on mills

    0.5 .2 RECOMMENDATIONS FOR LONG TERM ACTIONSa) Non-Technical

    i) Introduce MODVAT schem e of excise for foil industry also andensure that benefits are pas sed on to foil user sii) Provide long term finances for modernisation/new units, providedthe following objectives for development are ensured:

    quality improvem ent productivity improvement reduction in wastages increased foil availability and exportability of foils

    b) Technicali) Encou rage foreign know-how transfer for continu ous strip castingand cold rolling of strip. This may be for in-house use and/or for saleof foil-stock and strip for making other flat/extruded products ofaluminium.

    ii) Explore improvem ent in quality and availability of ind igenous foil-stock.(xxiii)

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    Hi) Allow technology transfer for integrated autom ation system for exist-ing mills, (with manufacture of components indigenously).iv) En courage new integrated foil plan ts (Le strip casting, rolling, pro-cessing activities under one roof) to make the products export

    orientedv) Allow the units to replace old multiple units by new 'universal'installation.

    vi) Provide in all techology transfer a rran gements training of technicalpersonnel at operating units abroad, indigenisation of componentmanufacture and specific performance guarantees which must befulfiiled.vii) Enco urage specific R & D projects The se should be for equipm entdesign features for:

    improved productivity, reduction in foil wastage during processing, new products Le foil composites for specific applications indigenising m anufacture of com pon ents /sys tem s or for newmaterials (Le inks, papers, films, coolant additives, etc.).

    (xxiv)