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ALUMINIUM SULPHATE

CONTENTS SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT TRENDS SECTION V PRICE TRENDS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIALS REQUIREMENTS AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

SECTION XI SWOT ANALYSIS

SECTION XII FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS

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SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATION

1.1.General details Form Hydrated form, Al2 (SO4)3 .18H2O is

commonly known as Alum. Ferric Alum is known as Ferric Aluminium Sulphate. It is the Alum with Iron content.

Chemical formula Theoretically, Alum is Al2 (SO4) 3 18 H2O but usual commercial form is closer to Al2 (SO4)3 14 H2O.

Appearance White crystalline solid, with a sweet taste

Categories and Grades There are two broad categories of Alum as follows: Ferric Alum which is generally made from Bauxite and Iron free Alum (non Ferric Alum), generally made from Alumina. Commercially, hydrated Aluminium Sulphate is called Alum and is sold under such names as Filler Alum Commercial Alum, Paper Maker’s Alum etc. Technical grade Aluminium Sulphate is provided in two forms: a partially dehydrated solid and an aqueous solution of this material containing about 27% Al2(SO4)3.. The reagent grade Al2(SO4)3.18H2O is slightly, odourless, colourless monoclinic

crystals, having a specific gravity of 1.69.

The solid material, `Dry Alum’ is partially crystalline and may be discoloured to a brownish-green owing to impurities (chiefly iron) in the ores from which it is made. The solution form, `liquid Alum’ may exhibit a similar discolouration.

1.2. Specification of Alum

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Al2O3 Insoluble form Form Non ferric alum powder 17% Nil powder Ferric alum(second quality more in soluble) 15-16% 4.5% Slab 20.kg Ferric alum slab 7% Nil Solution of 2 pH 1.3. Aluminium Sulphate granulated (ALG) General Details ALG is Iron free and is delivered in a granulated form for easy and safe handling. It is produced by International organisations such as Kemira of Finland. The granules are free flowing and easy to feed with a screw feeder with a minimum of dust. The granules dissolves easily if handled in the right way. There is no risk of clogging. The granules have a high density. This is an advantage in terms of both freight cost and storage space. Specifications of Aluminium Sulphate Granulated Al2O3 total acc.to Din 19600 17.2% Total Fe as Fe2O3 0.07% Crystal water 435 Al2O3 free 0.5% Insoluble matter in water 0.03%

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SECTION II

PRODUCT APPLICATIONS

Application sector

Nature of application

Water Treatment The major area of use for Alum is in water treatment and clarification. Its clarifying action is attributed to Aluminium hydroxide formation by hydrolysis. This, in turn, carries down all the colloidal impurities and forms a slimy layer at the bottom.

Sizing of Paper

The other major areas of use is in sizing of paper. It reacts with sodium resinate to give insoluble Aluminium resinate. For sizing of paper, Alum should be free from Ferric ions or else the paper will be discoloured. Ferrous ions do not harm since they form a soluble colourless resinate which, however, would represent a loss of resinate . Alum imparts certain degree of resistance to penetration by liquids during sizing of paper.

Miscellaneous Applications

Alum is also required in various other industries like Dyes, Food, Petroleums, Pharmaceuticals, fire-proofing, tanning etc.

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SECTION III

INDIAN MANUFACTURERS There are number of Alum manufacturers in the country in the small scale sector. The manufacturers include the following. * Sree Drona Chalam Chemicals (P) Ltd., 40-329-A7,II Floor, Gandhinagar,

Kurnool-518001 * The Coastal Chemicals Ltd., Door No.7-20-8, 37-A, Kirlampudi Layout,

Visakhapatnam - 530 017. (A.P.) Factory : Mindi (Via) Gajuwaka, Visakhapatnam - 530 042. * Bengal Chemicals & Pharmaceuticals Ltd. (A Govt. of India Enterprise) Panihati B.T. Road, 24-Pgs(N)-743 176 Factories : 1. 168,Maniktala Main Road, Calcutta-700 054 * Ambica Chemical Industries Plot No. 7414, GIDC, Ankleshwar, Bharuch-393 002 * Kalpana Chemicals E/186, First Floor, B.G. Tower, O/s. Delhi Gate Ahmedabad-380 004 * National Industries Plot No. 155/C/A-3, GIDC., Ankleshwar, Dist. Bharuch-393 002 * Shivam Alums & Chemicals PlotNo. 7603, B/H, Karmatur Chokdi, GIDC., Ankleshwar-393 002, Dist. Bharuch * Mercers Chemical Industries MAG-Pharma Industries 231, Samuel Street, Masjid Bunder (W), Mumbai-400 003.

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* Tinco Chemicals Patel Society,Vallabh Baug Lane, Opp. Indian Overseas Bank, Ghatkopar (E), Mumbai - 400 077. * Vivira Chemicals Pvt. Ltd., 205, Princess Street,

Mumbai-400 002 * Guljag Industries Ltd. Nahata Bhavan Chopasni Road Jodhpur-342 003 * Ayes Dyes & Chemicals, No.1,1st Cross,Off. Vanagaram Road, Opposite to T.T.G. Inds, Ayanambakkam, Madras-602 102. * Kumar Chemical Corporation A-4/4, SIPCOT Indl. Complex, Cuddalore-5 * Metroblue Industries P.B. No.5, 1, Quarry Road, Evergreen Nagar, Thirupparam Kundram, Madurai-625 005 * Pondicherry Chemicals B-188, PIPDIC Industrial Estate Mettupalayam-605 009 * Quality Fluorides (P) Ltd. 108/1, Sedarapet Via, Auroville, Pondicherry-605 111 * Bansal Chemical Industries 8-D, Singar Nagar-226 005

Indian Installed capacity

Around 2,50,000 tonnes per annum

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SECTION IV

IMPORT/EXPORT DETAILS

4.1. Imports 4.1.1. Present import level Around 40 tonnes per annum 4.1.2. Countrywise Imports Period April 2001 to March 2002 Country

Quantity in Kgs

Janpan 13200 Singapore 3888 UK 20000 USA 150 4.2. Exports 4.2.1. Present Export level 8500 tonnes per annum 4.2.2. Countrywise Exports Period April 2001 to March 2002 Country

Quantity in Kgs

Bangladesh 2000 Chinese Taipei 50000 Colombia 200000 France 326000 Kenya 1314500 Malagasy RP 135000 Malaysia 450 Mauritious 118000 Nepal 395510 New Zealand 84000 Oman 43000 Philippines 4000 Slovenia 26000 South Africa 52650 Spain 22000 Sri Lanka 2938226 Sudan 315000 Tanzania REP 1466000

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Uganda 43000 U Arab Emts 727100 USA 146000 Zimbabwe 64000 4.2.3. Sample of individual exports details of Aluminium Sulphate Period 2002 Name of the Exporters Quantity in

tonnes Value in Rs. Country Date Port

Vivira Chemicals P.Ltd., 25 147469 Dubai 01.05.2002 to 31.05.2002

Mumbai

MK Aromatics Ltd., 150 656078 Victoria 16.05.2002 to 31.05.2002

Chennai

Adheshwara Exports P.Ltd.

150 480675 Colombo 11.07.2002 to 31.07.2002

Chennai

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SECTION V

PRICE TRENDS

5.1. Period: November, 2002 Basic price Rs.5000 per tonne Taxes and duties Extra at actuals

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SECTION VI

INDIAN DEMAND

The assessment of demand for Alum is made for the following sector Ferric alum is an important chemical used in the paper industry and in water treatment. Paper industry The most important use of Alum is in the paper industry for sizing of papers. The paper industry uses Aluminium Sulphate for the clarification of process water, pH control of pulp slurries, setting of dyes and precipitating colloidal clay and dissolved resin into the size on the fibres of the paper (setting of size). A paper mill consumes Ferric and non Ferric Alum at the rate of around 4 kgs/100 kgs of finished paper. Water treatment The next important outlet is in water and sewage treatment as a coagulant: Reaction of Alum with alkali in the water produces an Aluminium hydrate floc which drags down various impurities and aids in removing bacteria and in controlling the taste of water. Alum sold to municipalities for these uses is required to be basic to a slight excess of Al2O3. The Alum used for this applications is usually in the solution form. Frequently it is acidic containing a slight excess of Sulphuric acid for potable and waste water treatment processes. Miscellaneous applications In addition to this, Alum also finds application in textile units, soaps. cosmetics, fire extinguishers etc. Demand The estimated demand of Aluminium sulphate in the country is around 1,50,000 tonnes per annum. The estimated growth rate in demand is 6 to 7% per annum.

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SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Production of Aluminium sulphate in India starts from bauxite. Bauxite from Jamnagar (Gujarat) which contains high percentage of Alumina and low Iron content continues to be the best source for the manufacture of this heavy chemical. Technology and process There is batch process as well as continuous process for the manufacture of Alum. The batch process is adopted in the country. Bauxite ore containing preferably less than 3% Iron is transported to the plant site and crushed to a size of 50 to 75 mm. The crushed ore is further powdered by using a pulveriser. It is often seen that finer the size of bauxite, quicker would be the reaction rate. Usually ground bauxite of size 100 to 140 mesh is used in the process. It is essential that the Ferric oxide content shall be less than 3% in the ore, to obtain a satisfactory product containing less than 0.1% Iron. Prepared Ore is subjected to reaction with Sulphuric acid in open lead lined digesters at a temperature of around 105 deg.C. The desired strength of Sulphuric acid in open lead lined digesters is 52 deg. Be. The total reaction time is around 12 to 16 hrs. The reacted solution is taken to a settling tank. After settling ,the sludge is removed and discarded. The clear solution is concentrated in open pan evaporators. The concentrated solution is poured into large wooden vats, where it solidifies. This block is broken down into smaller pieces and sold. Where powdered form is required, it is subjected to pulverisation.

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Source of technology * Centre for Technology Transfer, 524, Bhanu Vilas, Sai Section, Ambernath - 421 501. * Shriram Projects & Engineering Services, Upper Ground Floor, Pragati Tower, 26,Rajendra Place, New Delhi-110 008 Major plant and machinery suppliers

Name of the equipment Name of the suppliers

Boilers Cethar Vessels Ltd.,

No.4, Dindigul High Road, Trichy Firetech Boilers Pvt. Ltd. No.211, 2nd Cross, 38th Main, B.T.M. Layout 2nd Stage, Bangalore-68

Reactors Chemitherm Plants & Systems P. Ltd., 30, Anandha Street Alwarpet, Chennai-600 018 Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai-600 098, Tamil Nadu

Centrifuge Hydrabad Met Chem. Pvt. Ltd., 34, C.I.E., Phase II, Gandhinagar, Opp. IDPL Colony Hyderabad-500 037 Spark Engineers Pvt. Ltd., 5/332, State Bank Colony II Salem-636 004

Mixer ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Drycon Systems F-14, IInd Main Road, Anna Nagar East Chennai-600 102

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Dryers The Anup Engineering Ltd., Behind 66 KV Electric Sub Station Odhav Road, Ahmedabad-382 415 ATRE Thermal Products Pvt. Ltd., Pushpa Heights, 1st Floor, Bibwewadi Corner, Pune-411 037

Pulveriser ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Frigmaires Engineers PO Box 16353, 8, Janata Industrial Estate Senapati Bapat Marg Opp Phoenix Mill, Lower Parel (W) Mumbai-400 013

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SECTION VIII

RAW MATERIAL REQUIREMENTS AND AVAILABILITY

Raw material requirement Basis: 10 tonnes per day of Alum Bauxite containing 60% (Al2O3) and Ferric oxide(Fe2O3) less than 3%

4.0 tonnes

Sulphuric acid 98% concentration 5.5 tonnes

Water at 30 deg.C inclusive of cleaning water 60,000 litres

Fuel 480 litres Air at 30 Psig pressure 20 M3 per hour Flaked glue 2000 gms per tonne Black ash (Barium sulphide) 90 kgs per tonne Power 249240 units Raw material availability Name of the raw material

Name of the supplier

Sulphuric acid There are more than one hundred units producing Sulphuric acid in the country, at various capacity levels. The total installed capacity for Sulphuric acid in the country is around 6.5 million tonnes per annum. Tanfac Industries Ltd., 14, SIPCOT Indl Complex Kudikadu, Cuddalore Adheswara Chemicals Pvt. Ltd., 82, Panapakkam Village,UthukottaiTaluk, Chengai MGR Dist.

Bauxite Indigenously available from Mines in Rajasthan

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SECTION IX

GLOBAL SCENARIO

Aluminium sulphate hydrate is commonly marketed in the technical or commercial grade The commercial grade is dissoluble both as Alum or granular solid containing 17 to 17.5% Al2O3 and as a solution containing 7.5 to 8.5% Al2O3. In the USA, it is usually produced by reacting bauxite or clay with sulphuric acid. Bauxite is more expensive than clay. The clay, generally kaolin, is roasted to remove organic materials and to break down its crystalline structure, there by increasing the alumina values available for extraction. Roasting is an energy intensive process. In addition, both clays and bauxite vary considerably with respect to the undesirable impurites of Iron and potassium. Thus, the choice of the raw material, roasted clay or bauxite, is governed by the overall economics of producing a satisfactory product. The optimum conditions for roasting the clay and the optimum strength of the sulphuric acid depend upon the particular source of the bauxite or clay. Finely ground baxuite or roasted clay is digested in sulphuric acid near the boiling point of the solution (100 to 120 deg.C) The clay or bauxite to acid ratio is adjusted to produce, either acidic or basic alum. Solids are removed by sedimentation. If necessary, the solution can be treated to remove iron. The iron free grade is produced by using pure Alumina trihydrate in place of bauxite or clay. Excess iron may lead to staining and discolouration of the product containing the aluminium sulphate.

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Important Global manufacturers * Laporte Chemicals Australia 20-22 McPherson St., Banks Meadow, NSW 2019 Post Box 18, Botany, MSW 2019 * Kemira Pigments Asia Pacific Pte. Ltd., 10, Anson Road, International Plaza, No.33-06A, Singapore-079 903. * Kali-Chemie AG Hans-Boeckler-Allee 20 D-3000 Hannover 1 * Cosmocel, S.A Via Matamoros 1501, Apdo. No.1, Suc.A, San Nicolas De Los Garza, Nuevo Leon 66480, Mexico.

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SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND

PROFITABILITY PROJECTION Economic capacity : 3000 tonnes per annum Project cost : Rs.134 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs 1.1 Cost of land of one acre at Rs.5.5 lakh per acre

5.5

1.2 Cost of levelling, laying internal roads/fencing and Compound wall

0.55

Subtotal 6.05 2. Building S.No. Description Cost

Rs.in lakhs 2.1 Factory building of area 400 sq.m. at Rs.3200/sq.m. 12.8 2.2 Non-factory building of area 40 sq.m.at Rs.4500/sq.m. 1.8 Subtotal 14.60 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs 3.1 Cost of basic plant and machinery 44 3.2 Instrumentation and control 3.3 3.3 Pipelines and valves 4.4 3.4 Structurals for erection 2.2 Subtotal 53.9 3.5 Octroi, excise duty, sales tax, etc.at 12%� 6.47 3.6 Packaging and insurance charges (2%) 1.08 3.7 Transportation charges (2%) 1.08 3.8 Machinery stores and spares (2%) 1.08 3.9 Foundation charges (2%) 1.08 3.10 Installation charges (2%) 1.08 Total cost of plant and Machinery 65.77

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4. Technical know-how fees Rs.2.2 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs 5.1. Electrification 2.7 5.2. Steam boiler and auxillaries 2.7 5.3. Water storage tank, borewell etc. 1.4 5.4. Fuel storage tank 1.4 5.5. Laboratory equipment 1.4 5.6. Office machinery & equipment 1.4 5.7. Material handling equipment, packaging machinery,

Weigh balance, etc. 1.4

5.8. Diesel generator 5 5.9. Effluent treatment 2.5 Total 19.9 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs 6.1. Preliminary expenses 1.65 6.2. Pre-operative expenses:- - 6.2.1 Establishment 1.5 6.2.2 Rent rates and taxes 1.5 6.2.3 Travelling expenses 1.5 6.2.4 Interest and commitment charges on borrowings 7.0 6.2.5 Insurance during construction period 1.75 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 14.9 7. Provision for contingency Rs.7.24 lakhs 8. Working capital margin Rs.2.31 lakhs 9. Total project cost Rs.134 10. Means of Finance Promoter's contribution Rs.54 lakhs Term loan from financing institutions Rs.80 lakhs Total project cost Rs.134 lakhs

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11. Financial statements (Rs. in lakhs) A Variable cost Raw material and utilities 71.8 Spares and maintenance 4.0 Selling expenses 7.5 Total Variabel cost 83.3. B. Fixed Cost Salaries and wages 7.2 Interest on term loan and working capital loan 16 Depreciation 8 Administrative expenses 4.5 Total fixed cost 35.7 C. Total cost of production(A + B) 119 D. Selling price per kg. in Rupees 5 E. Annual sales turnover 150 F .Net profit before tax (E-C) .31 G. Breakeven point in % 54%

SECTION XI

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SWOT ANALYSIS

Strength Large availability of Bauxite in the country

Weakness Competitive conditions

Opportunity No production of Granulated Alum in the country

Threat High credit period required for the sale of the product

SECTION XII

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FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATIONS

Aluminium sulphate remains as an important product, finding vital applications in water treatment and in the paper industry. The demand for the product has been steadily going up, requiring additional capacity creation. Though the demand for the product is vibrant, it is also found that a number of units have become sick in recent times. The reason is the severe competitive conditions in the market and high credit period required for the sale of the product. At the same time, major units like Dharamsi Morarji Chemical Co. Ltd., have been operating satisfactorily for the last several decades. This, obviously implies that strong working capital strength are required for operating successfully in the market. It is seen that granulated alum is not presently produced in India. The project proposal for granulated alum can be considered, which would provide good export opportunity.