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CHAPTER III
PROFILE OF KOTHARI PETROCHEMICALS LIMITED
Company History - Kothari Petrochemicals Limited, Chennai
Kothari Petrochemicals Limited (KPL) is a public limited company in
the private sector belonging to the H.C. Kothari Group of Companies. The
Company has been promoted by Kothari Sugars and Chemicals Limited
(KSCL) the flagship company of H C Kothari Group. The Company was
incorporated at Madras on 28/04/1989 under the name and style of Kothari
Petrochemicals Limited.
During the period 1989-95, the company was exploring the viability of
various petrochemical projects, and evaluating their techno-economic
feasibility.
The Company is presently implementing a project for the manufacture
of Caustic Soda and Chlorine at Karaikal in the Union Territory of
Pondicherry.
Main Objects of the Company
The main objects as set out in the Memorandum of Association of the
Company are as follows:
1. To implement letters of intent/licences received/to be received by
Kothari Sugars and Chemicals Limited, a Company registered in the
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state of Tamil Nadu relating to Petrochemicals Project to be established
at Manali Complex in the State of Tamil Nadu or elsewhere in India.
2. To carry on in India and in any part of the world the business of
processing, converting, manufacturing, formulating, using, buying,
dealing, aquiring, storing, packaging, selling, transporting, distributing,
importing, exporting and disposing of all types of petrochemicals like
Polybutenes, lubricant and lube oil additives, Naphtha, Methane,
Ethylene, Propylene, Butanes, Naphthalene, Cyclohexane,
Cyclohexanone, Benzene, Nitro Aromatics, Phenol, Acetic Acid,
Cellulose, Acetate, Vinyl Acetates, Caprolactam, Adipic Acid,
Hexamethylene, Diamine Orthoxylene, Pthalic Anhydride, Alkyd resins,
Unsaturated Polyester Resins, Polyester fibres and films, mixed Xylenes,
Paraxylene, Meta-xylene, Toluene, Cumene, Phenol, Styrene, Synthetic
Rubbers, Butanes, Butadiene, Methacrolein, Maleic Anhydride,
Methacrylates, Urea, Methanol, 1-2 Butane diol, Formaldehyde, UF, PF
and MF resins, Polymethyl Methacrylate, acetylene, PVC, Methanol,
Melamine and derivatives thereof, whether liquid, solid, or gaseous,
dichloride, Ethylene Oxide, Ethyleneglycol, Polyglycols, Polyurethanes,
Paraxylenes, Polystyrenes, Polypropylene, Isopropanol, Acetone,
Acrylonitrile, Acrolein, Acyclicesters, Acrylic Fibres, Allyl Chloride,
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Epicholorohydrin, aliphatic and aromatic alcohol, aldehydes, ketones,
vinyl chloride, acrylics, and all gases, Epoxy resins and all other petro
chemical products and polymers in all their forms like resins, fibres,
sheets, mouldings, castings, cellophane, disinfectants, insecticides,
fungicides, deodorants, as well as bio-chemical, and other preparations,
Hydrogen peroxide and compounds of peroxide, Nitrochloro benzenes,
Chlorobenzenes and derived compound thereon.
3. To carry on in India and in any part of the world business of processing,
converting, manufacturing, formulating, using, buying, dealing,
acquiring, storing, packaging, selling transporting, distributing,
importing, exporting and disposing all types of chemicals, heavy
chemicals including Soda Ash, (Sodium Carbonate) of all grades,
Sodium Bicarbonate of all grades, Sodium Chloride of all grades,
Caustic Soda of all grades Compounds, Citric Acid and its derivatives,
Hydrochloric Acid, Calcium, Oils, Greases, Synthetic chemicals derived
from Petroleum hydro-carbons elements chemicals compounds and
products of any nature and kind whatever including by-products,
derivatives and mixtures thereof.
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Corporate Vision
Kothari Petrochemicals vision is “to be a vibrant force that continually
innovates to add value to customers, employees and all stakeholders including
nature.” We remain committed to environmentally sustainable development
and continual innovation and investment to be the market leader in the global
Polybutene market.
Our Values
• Energy that builds confidence, vibrancy and teamwork backed by
youthfulness and group history
• Freedom that breeds professionalism, innovation, growth, trust
• Quality that manifests in products, people, processes
• Nature that is reinforced by eco-friendly decisions on all business
initiatives
Personal Mission Statement of Our Team Members
To use our capabilities to the maximum in delivering something of
significance every day.
Outlook
We are thus well positioned to supply the world market with
international-quality Polybutene to meet this growing demand.
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The versatile applications of the Polybutene (special grades) have incited
a potent demand for its derivatives across Asia Pacific, Middle East, Far
Eastern Countries and USA. The strongest growth in Polybutene demand is in
Asia, a region in which Kothari has grown as a trusted supplier to many large
companies, such as Exxon Mobil, Infineum, Chevron, BP Castrol and Lubrizol.
We are focused on effectively combining our core competencies and
cognizance of the industry to capture a sizeable global market share as well as
bring our Polybutene faster to market. To this extent, we are constantly
expanding our global network of facilities and service centers.
Quick Statistics
Exports of our products are climbing at 135% per year and there has
been an amazing 603% increase since 2006.
A staggering increase in the exports every year is a key reason of our
rapid expansion around the world. Our product’s acceptance by global giants
like Infineum and Castrol because of its quality and dependability of delivery
drives us to script unheralded chapters in the industry.
We are growing by investing in infrastructure and global talent, and
continue to strengthen our position by means of high quality production plants,
convenient locations, and above all a very amicable and long-term relationship
with our customers and employees.
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Global Strategy
To accentuate our global presence, we will:
• Recruit and retain the best talent
• Respond quickly to our customers' needs in order to build their
confidence in our company and our products
• Work effectively and efficiently with other organizations
Twenty countries around the world to which we export our product
Belgium
Brazil
China
Indonesia
Japan
Malaysia
Netherlands
Portugal
Saudi Arabia
Singapore
South Africa
Taiwan
UAE
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Germany
France
UK
USA
New Zealand
Australia
History and Overview
Even before India tasted the nectar of independence one man had already
set out to chase his dreams, to script one of the major success stories of the
century. Late Mr. C.M. Kothari, in the year 1919, laid the foundation for the
emergence of a multifaceted conglomerate – The Kothari Group.
After him his son, the late Mr. H.C. Kothari took up the task of
accomplishing his father’s dream and from then the wheel never stopped. With
Mr. H.C. Kothari at the helm, the Group flourished with numerous path-
breaking initiatives. His legendary presence even today, motivates the Group to
explore newer business possibilities that add value to life.
Under the leadership of Mr. B.H. Kothari, the HCK Group founded the
Pioneer Fund, India’s first mutual fund (later sold to Franklin Templeton),
diversified into private equity and real estate investing, and became a vanguard
in India for environmentally sustainable development best practices.
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Today the H.C. Kothari Group is a powerful entity in India, and a rapidly
growing brand across the world with specialized interests in:
• Petrochemicals
• Sugars and sugar byproducts
• Green energy, such as ethanol and co-generation of power
• Safe deposit and locker services
• Biotechnology
• Private equity investments
Since 60 years, the Kothari Group has maintained long-term
relationships with society. Agri-based communities surrounding the plants
have been blessed with diverse development initiatives that spell the greatest
good for the greatest number. The intention of giving back and contributing to
the community drives each one of us at Kothari Petrochemicals as well.
Responsibility Grows On
We are a major contributor to social and community development, and
as we continue to grow and evolve, the commitment and responsibility to serve
our communities grows as well.
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Touching Bases Regularly
Our continuous dialogue with the community exemplifies our
commitment and earnestness to understand and address issues of mutual
interest and concern.
Win-Win Participation
By promoting public participation we are able to share timely and
accurate information on how to foster our strong tradition of improving
environment, culture and human services in the community.
Enlightening Relationships
We develop and maintain collaborative relationships with organizations
and individuals in the community and educating them about our policies,
products, and programs
Supporting Education. Building Careers
We contribute to the education and welfare of young people to make
them competent and also offer opportunities to take up exciting careers with us
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Employer Satisfaction
Our employees who volunteer to play an important part in our
community projects and campaigns are encouraged and rewarded
Management
Name Designation
B H Kothari CEO
B H Kothari Chairman and Managing director
G Narayanaswamy Director
N Rangarajarathinam President - Finance
P K Rudra Director
P N Devarajan Director
P S Balasubramaniam Director
S Sundaramurthy Company Secretary & Compliance Officer
S Sundaramurthy Secretary
The performance highlights of the Company for the year are
summarized below.
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1. Financial Performance (Rs. in Lakhs)
Particulars 2011 - 2012 2010 - 2011
PBIDT 945.20 1,219.18
Interest 122.47 48.46
Profit after Interest before 822.73 1,170.72 Depreciation and Tax Depreciation & Goodwill 171.95 279.90
Profit after Depreciation 650.78 890.82 &Goodwill Tax Expenses 221.99 183.71
Profit After Tax 428.79 707.11
Profit/(Loss) brought 52.67 (312.47) forward from previous year Profit available for 481.46 394.64 Appropriation Proposed Dividend 294.23 294.23
Dividend Tax on 47.73 47.73 Proposed Dividend Balance Carried to 139.50 52.67 Balance Sheet
A part of the renowned HC Kothari Group, we are the largest producer
of premium quality Polybutene in India. Since our founding in 1990, the
company has enjoyed a strong market position in India with a rapidly growing
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brand across the globe that represents quality, customer responsiveness,
dependability and a commitment to the environment.
In the financial year 2007-2008, Kothari Petrochemicals commissioned a
second plant in Manali that doubled our production capacity to 22,000 MT per
annum in order to supply Polybutene worldwide. We have offices in Chennai,
Manali, Mumbai and Belgium, and supply to customers in 20 countries around
the world.
Global Outlook
In the year 2007-2008, the company undertook aggressive restructuring
of its leadership team, business processes and culture to strengthen its position
as a trusted brand worldwide. The restructuring actions have resulted in
improved operating efficiency, superior global consistency, and strengthened
financial performances. We have metamorphosed from a regional company to
a global business and continue to implement best practices that are shared and
implemented globally.
Quality through Innovation & Technology Improvements
Innovation and technology improvements remain the industry’s most
critical competitive factor. Continued investment and acceleration in them have
resulted in high quality levels of our products that are unmatched in India, and
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at parity with the leading global suppliers of polybutene. An ISO 9000 and ISO
14000 certification only adds value to our statement.
Enviable Clientele
We're committed to providing high quality Polybutene products to meet
the needs of a variety of customers.
Our products have been tested and certified by major customers, such
as Infineum, Lubrizol, Shell and Exxon, and are used across a wide range of
industries worldwide.
Industries Served
With every industry, requirements and needs change. Our Polybutene
works for various applications in multitudinous industries across the globe.
Marketed worldwide under the KVIS brand name, our product has time and
again delivered the goods and exceeded our clients’ expectations to no
measure.
A Global Leader A Global Citizen
Kothari Petrochemicals Health, Safety and Environment strategy is
based on active involvement of every employee. As part of the HC Kothari
Group, which has significant interests in green energy research and
development, we are committed to being an environmentally friendly producer
of products, which in turn are cleaner and non-toxic.
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Polybutene Production
The manufacturing process of Polybutene in Kothari, Manali is based on
Cosden Technology, USA. The state-of-the-art plant was commissioned in
March 1990 with modern equipments. Finer control of all processes is possible
through the centrally controlled DCS system.
The plant started with a capacity of 5500 TPA of Polybutene. Over a
period of time, the plant capacity has been increased to 11000 TPA of
Polybutene using in-house expertise and de-bottlenecking. With increase in the
demand of Polybutene, a similar capacity of another 11000 TPA plant was
installed within the plant premises and was commissioned in early 2008. The
trained manpower helped smooth commissioning of plant in record time with
on spec product.
This integrated Polybutene complex is capable of manufacturing
different grades of Polybutene and the overall capacity stands at 22000
MT/Annum. Kothari Polybutene complex is having a fully automated lab to
track the product quality on a continuous basis. The qualified and trained
manpower supports manufacturing & troubleshooting apart from being actively
involved in R&D and Product development activities.
ISO 9000 certification of first unit was obtained in the year 1994 and it
was upgraded to ISO 9001:2000 in the year 2001. Similarly, ISO 14001
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certification was obtained in the year 2002 and was upgraded to ISO
14001:2004 in the year 2005.
The major sections of this Polybutene Manufacturing Complex includes
• Feed Preparation Unit
• Reactor Section
• Neutralization Section
• Distillation
• Product Storage
Feed Preparation Unit
Kothari feed preparation unit is versatile and capable of handling C4
hydrocarbon from different sources. This section is designed to take care of
trace sulfur that comes along with C4. The free moisture is effectively removed
in this section.
Reactor Section
The polymerization of isobutylene is a liquid phase reaction catalyzed by
Aluminum Trichloride (catalyst). It is an exothermic reaction where heat
removal and maintaining reaction temperature is very critical. This requirement
is met by using qualified and trained Process Engineers operating DCS.
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Neutralization Section
The reactor effluent is effectively washed using properly engineered
Neutralizers. Sampling adheres to ISO Procedure and the highest standards of
quality are maintained.
Distillation Section
The polymer stream is passed through a series of distillation columns to
make on spec product. All columns have sophisticated internal packing/trays
that speak for quality.
SPC/SQC monitoring helps to sustain the quality of product and process
capability.
Product Storage
The purified product is taken to the product storage tanks where it is
stored under a blanket of nitrogen to prevent deterioration of product color.
Cosden Technology:
A process for the production of poly-n-butenes having a reduced content
of isobutylene from isobutylene-containing C4 feed stocks in a molecular
weight range between 1,300 and 350 under controlled polymerization
conditions, at a temperature range of 65 DEG -115 DEG F and in the presence
of promoted aluminum chloride in quantity of 0.02 to 0.1% by weight based on
total hydrocarbon feed, and the poly-n-butene products so produced.
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Polybutene from Kothari is better for lubricant, adhesives and paint
industries businesses and better for the environment:
Kothari Polybutenes are sold in market in different grades with
commercial names as KVIS 10, KVIS 30, KVIS 100 and KVIS 200.
Better for Lubricants
Kothari polybutenes demonstrate very low deposit formation. Unlike
typical lubricants, our polybutenes depolymerize cleanly when heated above
250 degrees Celsius.
• Low toxicity
• Good thickening properties
• High shear stability
Applications include: non-staining metal lubricants, specialist
compressor lubricants, low toxicity/energy efficient gear oils and greases.
Better for Two Stroke Engine Oils
Kothari polybutenes are a proven cost effective alternative for lowering
emissions in two-stroke engines - a chief concern among many countries with
increasingly strict environmental standards.
• Cleaner burning
• Reduced corrosion and scoring
• Elimination of engine deposits
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Kothari polybutenes offer enhanced performance compared to most
other polybutenes.
Better for Oil and Fuel additives
In engine oils, derivatives of Kothari polybutenes are used as ashless
dispersants (such as PIBSA) to minimize deposits and prevent oil thickening
and formation of sludge. These polybutene-based additives.
• Improve fuel economy
• Provide environmental benefits due to lengthening the life of oil in the
engine, and providing cleaner-burning engines
• For gasoline engines: reduce deposit formation and removes deposits
already present in carburetors, fuel injectors and intake systems, valves
and pistons
• For diesel fuel: used to clean fuel injectors
Better for Stretch/Cling Wrap Films
Higher grade Kothari polybutenes, such as KVIS 30 and KVIS 200 are
often used in cling wrap, due to their tackiness, good clarity, clinging
properties and durability.
Examples include film, stretch wrap, bale silage wrap
We are fully capable of customizing our polybutene viscosities and
grades to suit your unique needs.
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Better for Adhesives & Sealants
Pressure Sensitive Adhesives
• Kothari polybutenes are vital ingredients in many pressure-sensitive
adhesives (PSAs) and hot-melt adhesives (HMAs)
• Modify softness, tackiness, cohesive strength, and water resistance
• Polybutenes are better than mineral oils due to low color, resistance to
oxidation, no toxicity
• Examples of adhesives that can be improved with polybutene in-clude:
adhesives for surgical tapes; cements for leather; paper; paper laminates,
labels and tapes; masking and friction tapes; colourless adhesives; foil
and fiber lamination; and industrial tapes
Water Based Pressure Sensitive Adhesives
• Polybutene emulsions minimize organic vapor emissions in water-based
pressure sensitive adhesives
• Less expensive: These emulsions also offer enhanced adhesion and
temperature stability while lowering adhesive costs for packaging,
labels, and product assembly
Hot Melt Adhesives
• Kothari polybutenes perform as a polymer extender, plasticizer, tackifier
and wetting agent
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• Polybutenes decrease the melt index and increases the cold temperature
flexibility
• Examples include: packaging, disposable soft goods, carpet, shoes, and
furniture, book binding, carton sealing
Sealants
• Kothari polybutenes plasticize and add tack to elastomer based sealants
• They are softer and more easy to use as sealants
• Less utilization of solvents, which is environmentally beneficial
Kothari polybutenes are often used as a replacement for drying oils in sealant
and putty formulations
• Improved stickiness, or adhesion
• Longer life
• Less shrinkage
• Lower oil to filler ratios
Better for Paints & Coatings
Our polybutenes are a viable alternative to acrylic bases, since they improve
water repellency and result in lower manufacturing costs
• Water resistance
• Low color
• Plasticization
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• Better adhesion
• Replaces volatile solvents
Examples include: waterproofing for porous substances, such as wood or
concrete, hot-applied thermoplastic road marking paints, masonry paints
Environmentally Friendly Pest Control
Kothari polybutene is rapidly becoming the number one choice for
environmentally friendly pest control in agriculture, such as vineyards and
other delicate crops.
• Tackiness of polybutene can increase the effectiveness of pesticides and
insecticides
• KVIS 200 can be used to physically trap insects, and are often used in
vineyards and other delicate crops as a non toxic method of pest control
• Mixed with low molecular weight polyethylene, the resultant tacky gel
can be used for tree banding to trap tree climbing pests
Better for Electrical Insulation Applications
Kothari polybutenes are hydrophobic and non-conductive, and are thus
used as electrical insulation across a wide range of applications. Its low
chloride content and high level of purity result in resistance to oxidation and
gas evolution under electrical stress.