New Project (Saw)

8/6/2019 New Project (Saw)

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PREFACE

IN this dynamic corporate world the project works on Study of Indian Chlor Alkali market andabcil. Provided me great exposure to real life situation. The project training schedule for the six weekgave me practical exposure in the corporate world.

The project oriented training in Aditya Birla Chemicals India Ltd. Under the marketing department

Was a unique experience for me?

Aditya Birla Chemicals India Ltd. Is one of the Chlor Alkali Company of eastern region in India?

The project assigned to me is product documentation about ABCIL is corporation with truly, dedicated

and organized team under the able leaderships of experienced & complete managers.

I tried my level best to derive comprehensive, analytical & factual information.

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ACKNOWLEDGEMENT

A single person alone can never be credited for performing any extraordinary work successfully.

It is only possible with the continuous and constant help and guidance that they receive from

others.

I hereby acknowledging that this project has became possible by the whole heartedly

guidance and intense support from Mr. Iqbal IA Khan, who is the senior manager of marketingDepartment, has given his most precious time for helping in making this project, also the great

personality Mr. Saswat Mohapatra (dy.manager) who has also supported too in making thisproject possible by deciding the correct and relevant path for making the project.

I would like to give a lots of thanks to all the employee members of the Aditya Birla

Chemicals (India) Limited who have given their precious and valuable times for bringing this

project to the possible extent of completion along with giving me extra corporate knowledge for

benefitted in future.

Lastly, I would like to thanks to Aditya Birla Chemicals (India) Limited for giving suchbeautiful arrangement for everything, last but not the least a great thanks to Dr. T.goshal(marketing faculty kimds Ranchi) for providing his guidance in completing the project .

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STUDENT DECLARATION

I am Ayush KUMAR Sinha

Student of MBA hereby declares that the summer training report titled

Study of Indian Chlor Alkali market and abcil

With special reference to

ADITA BIRLA CHEMICALS INDIA LTD

Is completed and submitted under the guidance of Mr. Mr. Iqbal IA Khan is my originalwork. The imperial findings in this report are based on the data collected by me. This project has

submitted to kejriwal institute of management and development, RANCHI, for the purpose of

compliance of requirement this examination.

Ayush KUMAR Sinha

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TABLE OF CONTENTS: ------

Sl no

Content sPage no.

1

INTRODUCTION OF ABCIL 6

2

COMPANY PROFILE: 9

3 CONCEPTUAL FRAMEWORK OF

PRODUCT PORTFOLIO (ABCIL)

17

4 ABC(I)L - VALUED CUSTOMERS 22

5 Chemical Properties of Chlor alkali

product

23

6

MARKET SEGMENTATION:

26

7 Pricing policies: 29

8 COMPETITORS OF ABCIL 32

9 SWOT ANALYSIS OF ABCIL 34

10 An insight of Indian Chlor alkali market 36

11 Chloro Alkali Market Review 41

12 Caustic production method in India 48

13

SWOT ANALYSIS OF INDIAN Chlor

Alkali CHEMICAL INDUSTRY

51

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14 About the production method in Chlor

alkali industries(GLOBALLY)

54

15 An insight of global market 59

16

Recent development in global market

62

17

Global market share of caustic & chlorine

64

18 Analysis of abcil v/s eastern India 67

19

RECOMENDATIONS

70

20

Bibliography

71

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INTRRODUCTION OF

ABCIL (JHARKHAND,

PALAMAU)

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Aditya Birla Chemicals Ltd (ABCIL), formerly known as Bihar Caustic & Chemicals Limited

was incorporated in 1976 as a joint venture between the Aditya Birla Group and the Bihar State

Industrial Development Corporation, primarily with the objective of catering to the caustic soda

requirements of Hindalco and to contribute towards the economic development of the backward

region of Palamau district in Jharkhand. Today, it is among the leading caustic soda producer in

the northern and eastern region of the country. Apart from caustic soda it also produces liquidchlorine, hydrochloric acid, sodium hypochlorite, compressed hydrogen, aluminum chloride and

has recently ventured into Stable Bleaching Powder. In India, about 45% of the industry depends

upon the caustic soda industry as essential inputs for a host of industries like soap and detergent,

aluminum, paper & newsprint, fiber, glass, tyre, chemicals & petrochemicals, pharmaceuticals,

water treatment, dyes, textiles, oils, etc. However being a subsidiary of Hindalco Industries,

ABCIL is having an added advantage of assured off-take of caustic soda by the parent company.

It also has a hydrogen bottling facility which provides an additional stream of revenue. ABCIL is

a member of several chemicals manufacturers' associations including Alkali Manufacturers

Association of India (AMAI), Indian Chemical Council (ICC) and American Chemistry Council.

After shifting the manufacturing process of its plant from mercury technology to the energy

efficient state-of-art membrane cell technology, ABCIL has been constantly expanding it capacity

albeit at slow pace. Presently it boasts of having an installed capacity of caustic soda (300 TPD),

liquid chlorine (250 TPD), hydrochloric acid (125 TPD), sodium hypochlorite (4 TPD) &

compressed hydrogen gas (18,25,000 Nm3/A). Secondly, as caustic soda production is power

intensive, ABCIL has put up its own 30 MW coal based captive power plant due to which its

energy costs are lower than its peers. For value addition and effective utilization of chlorine, the

company has commissioned 12,000 TPA aluminum chloride plant in the year 2007 and 17,500

TPA stable bleaching powder (SBP) plant in the year 2008. SBP is marketed under brand name ofSHAKTIMAN and is basically used in textile mills for bleaching, sanitation, sewage systems,

tanning process, organic synthesis and other applications. On the other hand aluminum chloride is

mainly used as an input for manufacturing of aluminum apart from being used in

pharmaceuticals, chemical intermediates, agrochemicals, dyestuffs and pigments, hydrocarbon

resins, flavors and fragrances. Most importantly, with nearly 70% its production being taken by

Hindalco, company has an assured and ready market for its product

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Fundamentally, ABCIL is doing quite well as for FY09 it reported 20% growth in sales to Rs 205

cr although the PAT remained flat at Rs 46 cr. During the Sept08 quarter the boiler of the power

plant tripped due to mal functioning of safety device hence the power cost shot up for that period

which dented its bottom-line for time being. However the problem was rectified in the same

quarter and post that company has been churning out good set of nos. Notably, ABCIL enjoys the

highest operating margins among it peers - even better than Gujarat Alkalis and Chemfab Alkali.

Even for the latest June09 quarter its top line grew by 15% to Rs 60 cr and PAT improved by

20% to Rs 16 cr. It is one of the few companies which have been consistently reporting an OPM

of ~40% and NPM of ~25%. For FY10 it is expected to clock a turnover of Rs 240 cr and PAT of

Rs 60 cr leading to an EPS of Rs 26 on equity of Rs 23.40 cr. But despite belonging to such a

reputed group and having strong fundamentals like high profit margin, low debt equity ratio, huge

reserves, good dividend yield, consistent growth etc, scrip has been always poorly discounted by

the market men. Currently it is trading at a forward PE multiple of 2.5x times and EV/ EBIDTA

of 2x times. There is also a possibility of ABCIL getting merged with Hindalco industries. But ifthis happens, the true value of ABCIL wont be unlocked, as the merger ratio will more favorable

to the parent rather than subsidiary. Still investors are recommended to buy at current levels as

scrip can easily double within a year.

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COMPANY PROFILE:

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Aditya Birla Chemicals (India) Ltd. is a unit of Aditya Birla Group and one of the leading Chlor-

Alkali Company in India. The company was incorporated in on July 20, 1976 under the

Companies act1956, as a public limited company with the name Bihar Caustic andChemicalsLimited (presently known as Aditya Birla ChemicalsIndia Limited). In 1982, the companyproposed to setup a plant to manufacture Caustic Soda (33,000 tpa), liquid Chlorine (13,200 tpa),

Hydrochloric Acid (29,040 tpa) and Ammonium Chloride (26,000 tpa) at Garhwa road, P.O.

Rehla, Distt. Palamau (B category backward area) in the state of Jharkhand. The plant is located

200 kms from Ranchi and 120 kms from Renukoot (U.P). The plant has been commissioned in

1984, and is located in remote area of Palamau in Jharkhand state (Erstwhile Bihar). Originally it

was a joint venture between Aditya Birla Group and Bihar State Industrial Development

Corporation but now its a fully subsidiary of Hindalco Industries Ltd.

ABC(I)L was formally inaugurated by the former Prime Minister, Late Smt.Indira Gandhi on 5th September, 1984 in presence ofLate Aditya Vikaram Birla with aninitial caustic soda capacity of 100 TPD.

ABC (I) L plant sets a benchmark as lowest consuming mercury caustic soda plant

in India with its cell efficiency comparable to the best in the world. In spite of this fact, the

company is setting up still more eco-friendly relationship in the organization.

The current manufacturing process of the plant is latest energy efficient and

environment friendly state-of-art membrane cell technology. To meet the requirement of

uninterrupted power supply, company has a state-of-art 30MW Captive power plant. Company

has implemented SAP R/3 and people soft system. Company has adopted WCM (World Class

Manufacturing) work culture to meet the heterogeneous business challenges.

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Present capacities of the plant:

Product Installed capacity

Caustic soda (100% NaOH) 105,000 MT

Liquid chlorine 63,000 MT

Hydrochloric acid (100%) 43,750 MT

Sodium hypochlorite (lye weight) 18,000 MT

Compressed hydrogen 17,42,400 NM3

Aluminum chloride 12,000 TPA

Stable bleaching powder 17,520 MT

Captive power plant 30 MW

The manufacturing process of the plant is latest energy efficient and environment friendly state-

of-art Membrane Cell Technology. To meet the requirement of uninterrupted power supply,

company has a state-of-art 30 MW Captive Power Plant. Company has implemented SAP R/3

and People Soft System.

To meet the heterogeneous business challenges, company has adopted WCM (World Class

Management) work culture. Further organization has adopted 40 villages under community

development to improve the quality of life in nearby vicinity of the factory.

ORGANIZATIONAL FACT-FILE:

Co-promoted in 1976 by Aditya Birla Group and BSIDC.

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Commercial Production started in 1984.

Became subsidiary of Hindalco (An Aditya Birla Group Co.) in 2003.

Caustic capacity increased from 160 to 300 TPD with membrane technology, energyefficient environment friendly process.

ABOUT COMPANYS VISION,

MISSION & VALUES:

OUR VISION

To be benchmark in Chlor-Alkali industry with clear focus on each business process.

OUR MISSION

To exceed expectations by creating value for all stakeholders.

OUR VALUES

Integrity Honesty in every action.

Commitment Deliver on the promise.

Passion Energized action.

Seamlessness Boundryless in letter and spirit.

Speed One step ahead always.

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ACHIEVEMENTS:

For overall excellence, company has been recognized with prestigious national level awards viz.:-

FOR COMMUNITY DEVELOPMENT AND SOCIAL WELFARE

FICCI award for family welfare in 2004 by Honble Finance Minister Shri P.Chidambaram.

Mrs. Rajashree Birla, Chairperson, The Aditya Birla Centre For Community Initiatives

and RuralDevelopment receives the FICCI award for community development,

2003-2004 from Mr.P Chidambaram, Union Finance Minister

Excellence in development of agriculture and annual husbandry by Birsa AgricultureUniversity, Ranchi.

FOR EXCELLENCE IN SAFETY AND ENVIRONMENT

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Greentech Safety Gold Award in chemical sector, in year 2006, 2007 and 2008.

Aditya Birla Award for Best Responsible Care Committed Company for year 2005 byIndian Chemical Council, Mumbai.

Mr.P N Ojha receives the Best Responsible Care Committed Company award by Indian

Chemical Council 2004-2005 from industrialist Mr. Mukesh Ambani.

Greentech Environmental Excellence Gold Award in year 2005, 2006 and 2007.

FOR MANUFACTURING EXCELLENCE

The IMC Ramkrishna Bajaj National Quality Award, Certificate of Merit for year2005 and 2006.

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Mr. S.S.Gupta, managing director and unit head of Aditya Birla, receives the IMC

RBNQA certificate of merit 2006 from industrialist Mr. Rahul Bajaj.

The IMC Ramkrishna Bajaj National Quality AwardTrophy - 2007 in manufacturing category.

Mr. S.S.Gupta, managing director and unit head of Aditya Birla, receives the IMC

RBNQA Trophy 2007 from Mr. Montek Singh Ahluwalia, Deputy Chairman, and Planning

Commission.

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PLANT PICTURE

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CONCEPTUAL FRAMEWORK

OF

PRODUCT

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.

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PLANT LOCATION

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ABC (I) L - VALUED CUSTOMERS

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Chemical Properties of Chlor

alkali product

Sodium hydroxide (Caustic Soda lye)

Sodium hydroxide (NaOH), also known as lye and caustic soda, is a caustic metallic base. It isused in many industries, mostly as a strong chemical base in the manufacture of pulp and paper,textiles, drinking water, soaps and detergents and as a drain cleaner. Worldwide production in1998 was around 45 million tones.Sodium hydroxide is a common base in chemical laboratories.

HYDROCHLORIC ACID

Hydrochloric acid is produced along with the industrial preparation of caustic soda (sodium

hydroxide).During the electrolysis of sodium chloride, large quantities of hydrogen and chlorine gas

are obtained as by-products. These two gases are burnt to form hydrogen chloride gas. The hydrogen

chloride gas so formed is dissolved in water to form hydrochloric acid. A saturated solution of the acid

has a density of 1.2 g cm-3

. It contains about 40% by mass of hydrogen chloride.

Aluminum chloride is a powerful Lewis acid, capable of forming stable Lewis acid-base adductswith even weak Lewis bases such as benzophenone or mesitylene. Not surprisingly it formsAlCl4

in the presence of chloride ion.

In water, partial hydrolysis forms HCl gas or H3O+

, as described in the overview above. Aqueoussolutions behave similarly to other aluminum salts containing hydrated Al3+ ions - for examplegiving a gelatinous precipitate of aluminum hydroxide upon reaction with the correct quantity ofaqueous sodium hydroxide:

AlCl3( aq) + 3NaOH( aq) Al(OH)3( s) + 3 NaCl( aq)

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Preparation of Bleaching PowderPassing chlorine gas over dry slaked lime (Ca(OH)2), gives bleaching powder.

Ca(OH)2 + Cl2 CaOCl2 + H2O(Calcium hydroxide (Bleaching Powder)

or slaked lime)

Bleaching Powder

Bleaching powder is also called calcium chlorohypochlorite because it is considered as amixed salt of hydrochloric acid and hypochlorous acid.

Methods of production

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http://en.wikipedia.org/wiki/File:AlCl3_FriedelCrafts.gif


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Sodium hydroxide is produced (along with chlorine and hydrogen) via the chloralkali process.This involves the electrolysis of an aqueous solution of sodium chloride. The sodium hydroxidebuilds up at the cathode, where water is reduced to hydrogen gas and hydroxide ion

Product Report

SL.No. Name of Product Product Consumption/Sale Place

Main

By

Product

Sister

unit Customer India both

1 Caustic soda lye

2 Liquid Chlorine

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3

Sodium hypo

chlorite

4

Aluminum

chloride

5

Stable bleaching

powder

6

Hydrochloric

Acid

MARKET SEGMENTATION:

The priority of ABCIL is to marked its product in such a way the supply and demand of

homogenous and heterogeneous pattern informally more popular as most of its products are

organic and inorganic chemicals when every products are in liquid form the segmentation of

market area is decided in such a way that customer are near to main complex of ABCIL. The

products like caustic soda lye, hydrochloric acid, liquid chlorine and hazardous nature are

sufficient for its safe handling are taken. It is proffered to have sales as near as possible.

Segment (Rs.

in cr.)

Gross

sales

% contribution

to sales

Caustic Soda 182.6 79.2%

Liquid

Chlorine 6.2 2.7%

Hydrochloric

Acid 5.9 2.5%

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Diluted

Sulphuric

Acid 0.5 0.2%

SodiumHypochlorite 2.3 1.0%

Aluminum

Chloride 26.8 11.6%

Compressed

Hydrogen 0.2 0.1%

SBP 3.7 1.6%

Electricity to

JSEB 2.5 1.1%

Total 230.6 100.0%

Source: Company Annual Report

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Pricing policies:28


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The main aim behind formulating policies of organization is obviously to fetch maximum

return.i.e. Best prices of its products while deciding the policies, the producer has to consider the

following:

The cost of Raw material

The fixed and variable cost

The administration cost

Marketing cost including commission of distribution channel

The statutory liabilities

The above factors play a vital role in determining the prices for demand and supply scenario

prevailing in domestic and global market.

Channel of distribution:

In the field of marketing channel the distribution indicator routes through which goods andservices flow or moves from producers to customers.

The route of channel includes the manufacturers and the ultimate cumulative as well as all

intermediatories ABCIL has been gathering all the three channel of distribution as under

For large consumers public sector like NTPC, ONGC, IFFCO, etc. the company has adopted the

zero level channel of distribution where the manufactured goods are sold directly from

manufacturer to consumer hence channel of distribution.

For medium scale consumer where price negotiation and transportation arrangement payment

follow up are regularly requisite and the quantity requisite is not very large ABCIL has adopted

first level of channel of distribution as under.

Manufacturing dealer, trader, sub dealer sales

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In ABCIL the product are sold out of two ways

1. Direct marketing through tender

2. Through dealers:

The company appoints same dealers to sell its products. Such dealers work for the company

discovers the customers negotiation with them and try to expand the market. They charge some

commission for their duties.

The company also enters in to direct contact with other large companies like NTPC, IPCL, IOC,

IFFCO, etc. both the parties negotiate with each other directly and if the terms and condition of

Contract is accepted mutually.

Sales promotion:

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Sales promotion is very vital for any company to increase its sales promotion is mainly done in

three ways

Advertisement

Samples

Discount

ABCIL sales promotion is mainly done by two ways.

giving sample of product to customer

credit facilities up to 30 days

Apart from these two mains ABCIL has no particulars sales promotion policy. The company is

striving to makes better one forts great goodwill and maintain good relationship with customers.

Advertising:

ADITYA BIRLA CHEMICALS INDIA LITITED company therefore it does not have big

advertising system mostly there is not advertising for ABCIL but sometimes in international

market for export of its products now a days ABCIL has started giving advertisement on website

for international business.

Website: www.adityabirlachemicalsindia.com

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INDIAN CHEMICAL COMPANIES IN EASTERN

REGION

&

COMPETITOR

Kanoria Chemical Ltd. (Renukoot)

Hukumchand Jut Mills (Amlai)

Hindustan Heavy Chemical Ltd. (Kolkata)

Durgapur Chemical Ltd. (W.B), Durgapur

Jaishree Chemical Ltd. (Orissa), Ganjam

ABCIL WORKING ON------------

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5 S MODELS:

1 Sort

Clearly distinguish needed items from unneeded items remove all items from the work place that

are not needed for current operation

2 Set in order

Arrange needed items so that they are easy to use and liable them so that one can find them and

put them away.

3 Shine

To keep work place swept and clean

4 Standards

It is the reasons that exist properly maintain this integrated sort set in order and shine in unfilled

whole.

5 Sustain

To make a habit of properly maintaining current procedures.

SWOT ANALYSIS OF ABCIL33


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STRENGTHS:

Strong brand recognition

Internet sales

Growing international presence

Superior research and development department

Strong financial returns

Strong sense of culture in the working environment

Successful experience being competitive

Effective Leadership

Cost leadership

Prestigious Client Base

Customer Loyalty

Diversified Business

Product innovation capabilities

Technological excellence.

Good corporate image.

WEAKNESSES:

Complexity of operation

Lengthy processing chain

OPPORTUNITIES:

Growth of core sector industries

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Rapid integration with global economy

Booming construction business in Asia

Growing e-commerces business.

Increasing urbanization

THREATS:

Entry of global players

Take over possibilities

Political threats

The impact of foreign currency fluctuation and interest rates.

Loss of sales to substitutes

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An insight of Indian Chlor alkali

market

INDIAN CHLOR-ALKALI INDUSTRY

37 CHLOR-ALKALI UNITS SPREAD ACROSS INDIA

WIDE CAPACITY RANGE : VERY SMALL PLANTS OF 40 TPD TO WORLD

SCALE PLANTS OF 800 TPD

CAUSTIC SODA

REGION TOTALCAPACITYTPD *

CAPACITYDISTRIBUTION

NO. OFPLANTS

CAPACITYRANGE TPD*

EAST : 1147 13.0 8 40-365

WEST : 4615 52.0 16 40-800

NORTH : 1171 13.0 4 235-335

SOUTH : 1943 22.0 9 110-375

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37

7

S TA T U S O F IN D IA N C H L O R-A L K A L I IN D U S

W E S T E A S T

P R O D U C T IO N S IT E S

N o. 4

C a p . 0 . 4 1

1 3 %

N o.- 1 6

C a p . 1 . 6 2

5 2 %

N o . 8

C a p . 0 . 4 0

1 3 %

N o . 9

C a p . 0 . 6 8

2 2 %

T o ta l C a p a c it y a s o n 0 1 . 0 1 .0 9 3 .11 m M T

O n l y 7 P la n t s o n M er c u r y C e ll w it

0 .2 3 m M T PA ( 7 % )


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I ND IA

C a u s t ic S o d a C

C a u s t ic S o d aP r o d

M e

L

D S C L (K

J h a g a d i a

P A C L , 3

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Chloro Alkali Market

Review

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Caustic Domestic

Caustic prices have declined further in May/June 09 due to increased availability,especially lower priced imports.

Availability of imported material as well as the higher domestic production has resulted insurplus in Western Zone.

Movement of caustic from West to North Zone has affected market sentiment in North. SFD, Nagda closure due to water scarcity has led to demand-supply imbalance of caustic

lye. CSF prices have dropped in sync with dropping lye prices.

Chlorine Domestic

Chlorine markets have improved and there is better chlorine off take from CPW, AgroChemicals and Chlorine derivatives.

Meghamani factor is playing in West Zone; we would see lesser impact in North Zone,which is expected to do better.

Table 2.2 CAUSTIC SODA PRODUCTION TRENDS IN INDIA

YEARINSTALLEDCAPACITY(000MT)

PRODUCTION(000MT)

DEMAND(000MT)

SUPPLY(000MT)

CAPACITYUTILISATION(in percentage)

1995-1996

1,673.0 1,308.7 1,346.0 1,448.6 78

1996-1997

1,914.0 1,320.0 1,331.5 1,460.1 69

1997-1998

2,028.5 1,416.8 1,506.5 1,561.9 70

1998-1999

2,272.1 1,492.2 1,558.2 1,640.5 66

1999-2000

2,251.4 1,514.0 1,548.2 1,576.8 67

Source: Alkali Manufacturers Association of India.

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42

Table 2.3 CAUSTIC SODA SUPPLY & DEMAND IN INDIA (in 000 MT)

YEAR PRODUCTION IMPORTS

TOTAL DOMESTICAVAILABILITY(Including openingstock)

EXPORTSDOMESTICCONSUMPTION

1996-1997

1,320.0 64.0 1,403.2 56.9 1,331.5

1997-1998

1,416.8 116.0 1,547.6 17.3 1,506.5

1998-1999

1,492.2 94.5 1,610.5 30.0 1,156.0

1999-2000

1,514.0 60.0 1,598.5 28.3 1,548.2


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YEAR OPENINGSTOCK

PRODUCTION

IMPORTS

TOTALDOMESTICAVAILABILITY

PHYSICALEXPORTS

DOMESTICCUNSUPTION

CLOSINGSTOCK

2005-2006

13.9 1936.7 58.3 20008.9 30.9 1960.1 17.9

20062007 17.9 1993.1 140.7 2151.7 39 2092.8 19.9

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2007--2008 19.9 2160.3 172.5 2352.7 37.8 2288.9 26

20082009 26 2198.5 185.1 2409.6 59 2317.1 33.5

2009--2010 33.5 234 389.1 2756.6 18.9 2701 36.7

Cau

ALL INDI

FIGURE 2007-08

20

A r 1.66

Fi

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Scenario of east India

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INSTALLED CAPACITY AS ON 31.03.2009

PRODUCTION

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Caustic production

technique in India

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P R O C E S S F L O W C H A R T - M E M B R A N E P L

S A T U R A TO R

P U R I F I E RA

S E T T L E RC L A R IF I E D

B R I N ET A N K

F I L T E R

L I Q U E F I E R

GA SA B S O R B E R

S A L TW A T ER

N aO H

N a2C03

S L U D G E T

D I L U T E D B R I N E

C H L O R I N E G A S

ANTHRACITEFILTER

O VB R

D E-C H L O R I-N A T I O N

C W S

G A SC O O L E R-II

C W R

M I S TE L I M I N A T O R

C H I L L E D

W A T E R IN

C O N D E N S A TO U T L E T

G A SC O O L E R-I

C . H .W .O U T

D R Y I N GT O W E R

C O N C . H2S04

D I L .H2S04

C O M P R E S S O R

S N I F F G A S

LI QUI DC H L O R I N ES T O R A G E

C H L O R I N E

H2

E X H A U S T

B L O W E R

P L A T EC O O L E R

P U M P

N a0HC I R C U L A T I O N

T A N K

S O IU M H Y PT A N K

P U M P

HYDROGENCOOLER

C H .W . IN

C H . W . O U T

W A S T E S N IF F G A S E S

H 2 G A S

H Y D R O G EH O L D E R

C O O L IN G W A T E RIN O U T

H C LF U R N A C E

H C LA B S O R B E R

A B S O R P T IO N W A

H C LR E C E I V E R

H 2 V E N T

H 2

P U R I F I E RB

B a C O3

C o a g u lan tT a n k

P O L I S

H E DB R I N ET A N K

R E T U R N B R IT A N K

F I L T ER E D

B R I N ET A N K

POLISHINGFILTER RECUPERATOR

IONEXCHANGE

COLUMN M E M B R A N E

C

A N O L Y -

H2

E L

C

C H L O R A T ED E C O M P O S

H C l

3 2% N a O HT A N K

CE V A P

D M W

P R O C E S S C N

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A lu

Company

Arkema 60%

G ulbrandsen 80%

Base M eta l50


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SWOT ANALYSIS OF INDIAN

CHEMICALS INDUSTRY

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STRENGTHS:

Diversified Manufacturing Base

Vibrant downstream industries in different segments

Competitive core industries

Capability to produce world class end products

Strong presence in export market in sub segments

Large domestic market

Major raw material component sources within the country

Good R&D base

WEAKNESSES:

Infrastructure

Cost advantages

Scale of production

Technology

Multiplicity of taxes

Labor laws

OPPORTUNITIES:

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Challenge to compete globally by concentrating on weaknesses

Markets in the developed countries

A large number of products going off patent

Advantages in certain categories can be used for boosting exports

Stringent environmental laws in the western countries

Climatic conditions in India

Competencies to utilize renewable resources

Competency to emerge as global player in the area of Specialty chemicals

THREATS:

Imports of chemicals, intermediates and end products

Tariff levels for chemicals

Greater competition due to Chinese products

Bilateral/multilateral trade agreements

The labor laws, power supply and infrastructure facilities

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About the productiontechnique in Chlor alkaliindustries (GLOBALY)

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Production technique of color alkali industry

1. Mercury cells

The mercury cell has steelbottoms with rubber-coatedsteel sides, as well as end boxesfor brine and mercury feed and

exit streams with a flexiblerubber or rubber-coated steelcover. Adjustable metal anodeshang from the top, and mercury(which forms the cathode of thecell) flows on the inclinedbottom. The current flows fromthe steel bottom to the flowingmercury.

Saturated brine fed from theend box is electrolyzed at the

anode to produce the chlorine gas, which flows from the top portion of the trough and then exits.The sodium ion generated reacts with the mercury to form sodium amalgam (an alloy of mercuryand sodium), which flows out of the end box to a vertical cylindrical tank. About 0.25% to 0.5%sodium amalgam is produced in the cell. The sodium amalgam reacts with water in thedecomposer, packed with graphite particles and produces caustic soda and hydrogen. Hydrogen,saturated with water vapor, exits from the top along with the mercury vapors. The caustic sodathen flows out of the decomposer as 50% caustic. The UN reacted brine flows out of the exit endbox. Some cells are designed with chlorine and analyst outlets from the end box, which areseparated in the depleted brine tank. The mercury from the decomposer is pumped back to thecell.

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Schematic of a mercury cell.
http://electrochem.cwru.edu/encycl/fig/b01/b01-f05b.gif


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2. Diaphragm cells

The diaphragm cell is arectangular box with metalanodes supported from thebottom with copper-base plates,which carries a positive current.The cathodes are metal screens

or punch plates connected fromone end to the other end of therectangular tank. Asbestos,dispersed as slurry in a bath, isvacuum deposited onto thecathodes, forming a diaphragm.Saturated brine enters the anodecompartment and the chlorinegas liberated at the anode during

electrolysis, exits from the anode compartment. It is saturated with water vapor at a partialpressure of water over the anolyte. The sodium ionsare transported from the anode compartmentto the cathode compartment, by the flow of the solution and by electro migration, where theycombine with the hydroxyl ions generated at the cathode during the formation of the hydrogenfrom the watermolecules. The diaphragm resists the backmigration of the hydroxyl ions, whichwould otherwise react with the chlorine in the anode compartment. In the cathode compartment,the concentration of the sodium hydroxide is ~12%, and the salt concentration is ~14%. There isalso some sodium chlorate formed in the anode compartment, dependent upon thepH of theacolytes.

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Schematic of a diaphragm cell.
http://electrochem.cwru.edu/ed/dict.htm#a02http://electrochem.cwru.edu/ed/dict.htm#c14http://electrochem.cwru.edu/ed/dict.htm#c14http://electrochem.cwru.edu/ed/dict.htm#c03http://electrochem.cwru.edu/ed/dict.htm#s02http://electrochem.cwru.edu/ed/dict.htm#s19http://electrochem.cwru.edu/ed/dict.htm#a37http://electrochem.cwru.edu/ed/dict.htm#a37http://electrochem.cwru.edu/ed/dict.htm#i01http://electrochem.cwru.edu/ed/dict.htm#i01http://electrochem.cwru.edu/ed/dict.htm#e44http://electrochem.cwru.edu/ed/dict.htm#m34http://electrochem.cwru.edu/ed/dict.htm#s02http://electrochem.cwru.edu/ed/dict.htm#e44http://electrochem.cwru.edu/ed/dict.htm#p13http://electrochem.cwru.edu/ed/dict.htm#p13http://electrochem.cwru.edu/encycl/fig/b01/b01-f06b.pnghttp://electrochem.cwru.edu/ed/dict.htm#a02http://electrochem.cwru.edu/ed/dict.htm#c14http://electrochem.cwru.edu/ed/dict.htm#c03http://electrochem.cwru.edu/ed/dict.htm#s02http://electrochem.cwru.edu/ed/dict.htm#s19http://electrochem.cwru.edu/ed/dict.htm#a37http://electrochem.cwru.edu/ed/dict.htm#i01http://electrochem.cwru.edu/ed/dict.htm#e44http://electrochem.cwru.edu/ed/dict.htm#m34http://electrochem.cwru.edu/ed/dict.htm#s02http://electrochem.cwru.edu/ed/dict.htm#e44http://electrochem.cwru.edu/ed/dict.htm#p13


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3. Membrane cells

In a membrane cell, an ion-exchange membrane separatesthe anode and cathodecompartments. The separator isgenerally a bi-layer membranemade of perfluorocarboxylic

and perfluorosulfonic acid-based films, sandwichedbetween the anode and thecathode. The saturated brine isfed to the anode compartmentwhere chlorine is liberated at theanode, and the sodium ionmigrates to the cathodecompartment. Unlike in thediaphragm cells, only the

sodium ions and some water migrate through the membrane. The un reacted sodium chloride andother inert ions remain in the anolyte. About 30-32% caustic soda is fed to the cathodecompartment, where sodium ions react with hydroxyl ions produced during the course of thehydrogen gas evolution from the watermolecules. This forms caustic, which increases theconcentration of caustic solution to ~35%. The hydrogen gas, saturated with water, exits from thecatholytecompartment. Only part of the caustic soda product is withdrawn from the cathodecompartment. The remaining caustic is diluted to ~32% and returned to the cathode compartment.

Thus, all three basic cell technologies generate chlorine at the anode, and hydrogen alongwith sodium hydroxide (caustic soda) in the cathode compartment (or in a separate reactorfor mercury cells, see Figure 5). The distinguishing difference between the technologieslies in the manner by which the anolyteand the catholytestreams are prevented frommixing with each other. Separation is achieved in a diaphragm cell by a separator, and in amembrane cell by anion-exchange membrane. In mercury cells, the cathode itself acts asa separator by forming an alloy of sodium and mercury (sodium amalgam) which issubsequently reacted with water to form sodium hydroxide and hydrogen in a separatereactor.

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. Schematic of a membrane cell.
http://electrochem.cwru.edu/ed/dict.htm#i04http://electrochem.cwru.edu/ed/dict.htm#i04http://electrochem.cwru.edu/ed/dict.htm#a02http://electrochem.cwru.edu/ed/dict.htm#c03http://electrochem.cwru.edu/ed/dict.htm#e44http://electrochem.cwru.edu/ed/dict.htm#a37http://electrochem.cwru.edu/ed/dict.htm#m34http://electrochem.cwru.edu/ed/dict.htm#m34http://electrochem.cwru.edu/ed/dict.htm#m34http://electrochem.cwru.edu/ed/dict.htm#c08http://electrochem.cwru.edu/ed/dict.htm#c08http://electrochem.cwru.edu/ed/dict.htm#a37http://electrochem.cwru.edu/ed/dict.htm#a37http://electrochem.cwru.edu/ed/dict.htm#c08http://electrochem.cwru.edu/ed/dict.htm#c08http://electrochem.cwru.edu/ed/dict.htm#s02http://electrochem.cwru.edu/ed/dict.htm#i04http://electrochem.cwru.edu/ed/dict.htm#i04http://electrochem.cwru.edu/encycl/fig/b01/b01-f07b.pnghttp://electrochem.cwru.edu/ed/dict.htm#i04http://electrochem.cwru.edu/ed/dict.htm#i04http://electrochem.cwru.edu/ed/dict.htm#a02http://electrochem.cwru.edu/ed/dict.htm#c03http://electrochem.cwru.edu/ed/dict.htm#e44http://electrochem.cwru.edu/ed/dict.htm#a37http://electrochem.cwru.edu/ed/dict.htm#m34http://electrochem.cwru.edu/ed/dict.htm#c08http://electrochem.cwru.edu/ed/dict.htm#a37http://electrochem.cwru.edu/ed/dict.htm#c08http://electrochem.cwru.edu/ed/dict.htm#s02http://electrochem.cwru.edu/ed/dict.htm#i04


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About production technologies used in U.S.A

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An insight of global

market

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GLOBAL CHLORINE INDUSTRY

Global Chlorine Capacity - 69 million MTPA

Total 500 plants & 650 Chlor-Alkali Sites Worldwide

Mostly Captive & Integrated Plants

Very little long distance Transportation of Liquid Cl2

Very stringent, high level of Safety features & strong commitment to SHE

Stringent targets & goals in SHE eg. Euro Chlor targets for 2010 :

Zero transport incidents involving bulk Chlorine movement

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75% reduction in process incidents

To reduce lost time injuries by 85%

Set practices for reporting & sharing accidents / failures & openness to learn from such

failures

Active Global Safety Team (GST) & Quarterly Safety Newsletter

Dedicated website for Global information on Cl2CVn(Chlor Vinyl Network) :

www.chlorvinyl.net

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C h in a ( U S $ /

R e g i o n

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Recent development inglobal market

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Overview of global (Caustic) market in recent past:-

U.S. domestic demand is projected to be about 16 percent lower in 2009 versus 2008. U.S.

caustic soda demand remains very weak, and an increase in chlorine demand/productionin April compounded efforts to control high caustic inventories. Prices continue to fall.

Caustic demand in May was extremely weak in Europe. There was further price pressure

across Europe. Spot caustic is reported at a level of $135 -150 per dry metric ton FOB.

In Asia, the demand for caustic remains relatively weak. As a result, prices for both

domestic and spot export markets have come under further downward pressure.

The new Chlor-alkali / vinyls complex under construction in Bandar Imam, Iran, is

expected to start up in the fourth quarter of this year.

As per latest info, China domestic prices are at USD 270 and Chinese producers are

offering USD 240 250 FOB China.

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Global market shareof caustic & chlorine

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Caustic

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Chlorine

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Analysis of ABCIL v/s

eastern India

Production wise share of the company

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Aditya Birla Chemical India L.T.D is the market leader in east India as far as production is

concerned fallowed by Kanoria chemicals ltd which is the second largest producer of color-alkali

product in eastern region. Aditya Birla Chemical India L.T.D is not only the market leader but it

has also increased its production share from 31 % to 35 % which in it self is a remarkable

achievement.

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Recommendations

1. There is some upcoming demand of Chloro-Alkali products due to set up of new aluminum

plant in eastern India (in Orissa) thats why immediately we should go for expansion of ourproduction capacity.

2. ABCIL should increase the capacity of captive power plant to get the cost benefit of power

3 stringent credit worthiness analyze in order to avoid bad debt of customer.

4. Need to create better, differentiated and detailed brochures.

5. To find out the local industry where abcil can sell its product.

6. Abcil should focus mainly on those customers who are comparatively nearer to reduce the

transportation cost.

7. Abcil should evaluate cost benefit if it set up its own transportation system.

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BIBLIOGRAPHY

Reference Books:

1 Kotler, P. and Armstrong G., Principles of Marketing

3. Annual Report (2007-08) and (2008-09).

3. Websites:

www.adityabirla.com(Intranet)

www.adityabirlachemicalsindia.com www .google.com

www.wikipedia.org

www.amai.com

www.chlorvinyl.net

www.cmaiglobal.com

www.chemconference.com

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http://www.adityabirla.com/http://www.adityabirlachemicalsindia.com/http://www.wikipedia.org/http://www.amai.com/http://www.chlorvinyl.net/http://www.cmaiglobal.com/http://www.chemconference.com/http://www.adityabirla.com/http://www.adityabirlachemicalsindia.com/http://www.wikipedia.org/http://www.amai.com/http://www.chlorvinyl.net/http://www.cmaiglobal.com/http://www.chemconference.com/


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