POLY ALUMINIUM CHLORIDE
CONTENTS
SECTION 1 PRODUCT CHARACTERISTICS AND SPECIFICATION
SECTION If PRODUCT APPLICATIONS
SECTION Il INDIAN MANUFACTURERS,
SECTION IV IMPORT/EXPORT LEVEL
SECTION V PRICE DETAILS
VI INDIAN DEMAND.
SECTION VII_ BROAD OUTLINE OF MANUFACTURING PROC
SECTION VIIL_ RAW MATERIAL REQUIREMENTS, UTILITY
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 RECOMMENDATIONSSECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATIONS,
Product specification
Alternate name PAC
Chemical formula AM(OH):5(80.)o.25Ch as
Molecular weight 108.79
Form and specification This generally available as a solution with an
aluminium content of 10% weight expressed
as ALO; It is also produced in the form
powder with the aluminium content of 30%
weight expressed as Al2O3SECTION II
PRODUCT APPLICATIONS
A partially hydrolysed Aluminium Chloride solution (# = 1.5), which may incorporte a small
amount of sulphate has been introduced in Japan, England and Australia as an alternative to
Alum, which is known as Poly Aluminium Chloride
Polyaluminium chloride is reputed to provide faster flocculation and stronger flocs than alum
in some applications.
Polyaluminium Chloride is used as a coagulant in water purification.SECTION - HL
INDIAN MANUFACTURERS.
Indian Manufacturer of Polyaluminium Chloride
* —— Grasim Industries Lid,
Chemical Division
Birlagram 458331
Nagda
‘Madhya Pradesh
Synergy Chlorinations Pvt. Ltd.
101, Synergy House,
Gorwa Subhanpura Road, Baroda
* DCM Shriram Industries Ltd.,
Kanchenjunga
18, Barakhamba Road,
New Delhi-110 001
Installed capacity: 13860 tonnes per annumNew Project
‘The following new project for Poly Aluminium Chloride is under planning
Name of the company Name of the Nature of
collaborator collaboration
Summit (India) Water Summit Research Technical
Treatment Labs, USASECTION - IV
IMPORT AND EXPORT DETAILS
Present import level Small quantity
Present export level Around 4000 tonnes per annum
Sample of individual exports - Period 2002
‘Name of the exporters | Quantity in] Valuein Rs. | Country Date Port
tonnes
Grasim Industries Ltd, 18, 227529 Bangkok 01.01.2002_to | Mumbai
16.01.2002
Grasim Industries Ltd. 18 227529 Bangkok 01.01.2002 to | Mumbai
16.01.2002
Grasim Industries Led. 18 227529 Bangkok 01.01.2002 to | Mumbai
16.01.2002
Grasim Industries Ltd. 18 BelIS Jakarta 17.01.2002. to | Mumbai
31.01.2002
Grasim Industries Ltd, 18 230155 Bangkok 16.02.2002 to | Mumbai
28.02.2002
Grasim Industries Lid. 1s 230153 Bangkok 16.02.2002. to | Mumbai
28.02.2002
Grasim Industries Led. 18 238838 Jakarta 16.02.2002. to | Mumbai
28.02.2002
Grasim Industries Ltd. 9 230104 Singapore 16.02.2002, to | Mumbai
28.02.2002
Grasim Industries Lid, | 7 100832 Dubai 16.03.2002 t0 | Mumbai
31.03.2002
Grasim Industries Lid. 15 246149 Port Kelang | 01.04.2002 to | Mumbai
30.04.2002
Grasim Industries Lid. 18 228019 Bangkok 17.09.2002. to | Mumbai
31.09.2002
Grasim Industries Lid. [38 35440 Bangkok 17.09.2002, to | Mumbai
31.09.2002
Grasim Industries Lid, | 38 97908 Port Kelang | 17.09.2002 to | Mumbai
31.09.2002
Grasim Industries Lid. 18 67D Jakarta (02.09.2002 to | Mumbai
16.09.2002
Grasim Industries Lid. 19 292131 Penang 02.09.2002 to | Mumbai
16.09.2002SECTION - V
PRICE DETAILS
Basie price Rs. 23 per kg
Taxes and duties. Extra as applicableSECTION VI
INDIAN DEMAND.
‘The demand for Polyaluminium Chloride is assessed in the water treatment sector
‘The important Aluminium based flocculants used in the water treatment sector are
Aluminium Sulphate, granules
Aluminium Sulphate, Solution
Iron containing Aluminium Sulphate, granules
Polyaluminium salts, solution
Demand Assessment for Polyaluminium Chloride
Polyaluminium chloride has been introduced in the country only in recent time. The use
pattern is still in the developing stage.
The Grasim Industries exports the products in good quantity and also sell the products to the
nearby units,
Present estimated demand
including export demand for. == [>>
Polyaluminiuen Chloride Around 14000 tonnes per annum,
Growth rate in demand
The growth in demand for Poly Aluminium Chloride would largely depend upon the increased
investments by the Government agencies in water treatment for public distribution as well as
the investments by the Indian industries in the effluent treatment facilities.
‘The growth in demand for Poly Aluminium Chloride is likely to be in tune with the overall
industrial and economical growth rate in the country.
Estimated growth in demand 8 0 9% per annum
Export potentials
There have been substantial exports of Poly aluminium Chloride in the powder form by
Grasim Industries Ltd,
The present level of exports is estimated to be around 4000 tonnes per annum.SECTION - VIL
BROAD OUTLINE OF MANUFACTURING PROCESS
Aluminium hydroxide is fed into the reactor containing sulphuric acid and hydrochloric acid.
‘The solution obtained is neutralised with calcium carbonate resulting in a mixture of PAC
solution and gypsum crystals.
‘The gypsum crystals are filtered and separated from the slurry.
Gypsum thus obtained can be used for the purposes of gypsum boards, cement ete, after being
washed with water,
S8AIOH)s+2H)SOy + 10HCL + CaCO, -—---> Alg(OH)i (S04) Cho + —COz
(CaSO4.2H20+11H20
Global technology suppliers
1 Kemira
P.O. Box 902,
S-25109 HELSINGBORG
Sweden
2. Summit Research Labs
45 River Road Suite 300
Flemington New Jersey - 08822
USA
9
+Major plant and machinery and suppliers
Reactor Arison Engineering Ltd.,
16-17, Motibaug, Chembur
Mumbai-400 071
Fluidtech Engineers
10/8, Chakrapani Road
Race View Colony
Guindy, Chennai-600 032
Neuttraliser ‘Sharplex Agro Process (I) Pvt. Lid.,
302, Hill View Industrial Estate, LBS Marg.
Ghatkopar (W),
Bombay-400 086
Filter ‘Air Filer Industries
Mercantile Building
2nd Floor, G.P.O. Box 886
9A, Lal Bazar Street
Caleutta-700 001
Divya International
23A, Netaji Subhas Road,
&th Floor, Room No.28,
Calcutta-700 001
Centrifuge Hydrabad Met Chem. Pet. Ltd.,
34, C.LE., Phase Il,
Gandhinagar, Opp. IDPL Colony
Hyderabad-500 037
Spark Engineers Pvt. Lid.,
5/332, State Bank Colony TI
‘Salem-636 004
Boiler Cethar Vessels Ltd
No, Dindigul High Road,
Trichy
Firetech Boilers Pvt. Ltd.
No.211, 2nd Cross,
38th Main, B.T.M. Layout
2nd Stage, Bangalore-68
10SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY
Raw material requirements
sis: One tonne of the product
Aluminium hydroxide 0.80 tonne
Sulphuric acid 0.25 tonne
Hydrochloric acid 0.47 tonne
Calcium carbonate 0.13 tonne
Fuel 160 litres,
Power T5HP.
Raw material availability
Sulphuric acid
Binani Industries Ltd., Kerala
Tanfac Industries Ltd.. Cuddalore
Hydrochloric acid
‘Chemfab Alkalies, Pondicherry
‘Tamil Nadu PetroProducts, Chennai
Calcium carbonate
Aranthangi Chemicals (P) Ltd_Aranthangi
Balaji Minerals, Salem
Cal Chem, MumbaiSECTION - IX
GLOBAL SCENARIO
Global demand
Global demand for Polyaluminium Chloride is estimated to be around 0.4 million tonnes per
annum.
Global Developments
Rasio considers Polyal n Chloride expansio:
Rasio Chemicals is carrying out an economic feasibility study on the possibility of expanding
its Polyaluminium Chloride plant at Squarnish, Canada. The current facility commissioned in
1990, has capacity of 15,000 tonnes per year. The company is considering diverse spectrum
of PAC products.
Kemira Chemicals’ Kemwater unit is investing FM25m ($5.5m) in production of solid
Polyaluminium Chloride in Helsingborg, Sweden. Engineering work has setup 20,000 tonnes
per annum granulation unit which was commissioned in 1997. Capacity for the feedstock
Polyaluminium Chloride solution will also be doubled to 40,000 tonnes per year. Production
of the dry solid will permit more distant exports to potential markets in Thailand, Africa and
the Middle East.
International Manufacturers of Polyaluminium chloride include the following,
1. GEO Speciality Chemicals
9213, Arch St., Pike
Little Roae AR 72206
2. Toyo Soda Manufacturing Co.
‘Toso Bldg, 7-7, Akasaka 1-Chome
Minato-Ku, Tokyo 107
3. Central Glass Co, Ltd.,
Kowa-Hitotsubashi Bldg.,
3-7-1, Kanda Nishiki-Cho
Chiyoda-Ku, Tokyo 101
4, Coyne Chemical
3015 State Road,
Croydon PA 19021EKA Nobel Inc, Paper Chemical Divi
2211 NewMarket Pkwy, Suite 106,
Marietta, GA 30067
General Chemical Corporation
90E Hasley Road,
Parisppany, New Jersey 07054-0397
Geo Specialty Chemicals
1920 Benhill Ave, Baltimore, MD 21226
Gulbrabdsen Co Ine
PO Box 5523, Clinton
New Jersey 08809
Holland Co. Inc
153, Howland Ave, Adams MA 01221
Peridot Chemicals (NI) Ine
100 Alexander Avenue
Pompton Plains,
New Jersey 07444
Reheis Ine
235 Synder Ave, PO Box 609,
Berkley Hiehgts,
New Jersey - 07922
Summit Research Labs
45 River Road Suite 300
Flemington New Jersey - 08822
Westwood Chemical Corporation
46, Tower Drive, Middletown
NY 10941SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND
PROFITABILITY PROJECTIONS
Economic capacity 3000 tonnes per annum
Project cost Rs.240 lakhs
Assessment of project cost
1. Land
S.No. | Description Cost
Rs.in lakhs
Cost of land of tacre at Rs.5.5 lakh per acre 5.5
12 Cost of levelling, laying internal roads/fencing and 0.55
compound wall
Subtotal 6.05
2. Building
S.No. | Description Cost
Rs.in lakhs
52.1_| Factory building of area 450 sq.m. at Rs.3200/sq.m. 14.40
22 [Non-factory building of area 150 sq.mat 675
Rs.4500/sq.m.
Subtotal 21.15
3. Cost of Plant & Machinery
S.No. | Description Cost
Rs.in lakhs
‘3.1___| Cost of basic plant and machinery 80.00
‘3.2 | Instrumentation and control 6.00
3.3 | Pipelines and valves 8.00
3.4 | Structurals for erection 4000
Subiotal 38.00
35 | Ociroi, excise duty, sales tax, etc.at 12% 11.76
36 Packaging and insurance charges (29%) 1.96
37 Transportation charges (2%) 1.96
3.8 | Machinery stores and spares (2% 1.36
3.9 | Foundation charges (2% 7.96
3.10 _| Installation charges (2%) 1.36
Total cost of plant and Machiner 119.564, Technical know-how fees Rs.2.5 lakhs
5. Miscellaneous fixed assets
SNo._] Description Cost
Rs.in lakhs
S.1,__| Electrification 2.00
5.2. _| Steam boiler and auxiliaries 3.00
5.3. | Water storage tank, borewell etc. 1.50)
5.4. | Fuel storage tank 1.50
55. Laboratory equipment 1.50
5.6. | Office machinery & equipment 7.00
5.7. | Material handling equipment, packaging machinery, 1.00
‘weigh balance, etc.
58. | Diesel generator 400
5.9. _| Effiuent treatment 2.00
Total 17.50
6. Preliminary & Pre-operative expenses:
SNo._] Description Cost
Rs.in lakhs
6.1,__| Preliminary expenses 7.00
6.2. _| Pre-operative expenses:
6.2.1 Establishment 1.00
6.2.2 Rent rates and taxes 1.00
6.2.3 | Travelling expenses 1.20
6.2.4 | Interest and commitment charges on borrowings 3.50
6.2.5 | Insurance during construction period 2.00
6.2.6 _| Other preoperative expenses and deposits =
6.2.7 | Interest on deferred payment =
Total 270
7. Provision for contingency Rs. 11.19 lakhs
8. Working capital margin Rs. 62.62 lakhs
9. Total project cost Rs.240 lakhs
10. Means of Finance
Promoter's contribution Rs.96 lakhs
Term loan from financing institutions Rs.144 lakhs
Total project cost s.240 lakhs11. Financial statements:
Re In aks
5.96
Spares and maintenance 7A7
Selling expenses 34.50
Total variable cost (A) 497 64
B Fixedcost
Salaries and wages 12.00
Interest on term loan and working capital loan 34.37
Depreciation 15.19
‘Administrative expenses 20.70
Total fixed cost (B) 02.20
G__ Total cost of production (A+B) 50883
D.__ Selling price per kg. Gin Rupees) 2
E. Annual sales turnover 80.00
F.__ Net profit before tax (E-O) 3017
33
G.__ Breakeven point in %SECTION XI
SWOT ANALYSIS
‘Strength ‘Growing demand for the product\
Weakness Producers are not distributed all over India,
Therefore freight cost is high.
Opportunity Export
Threat ‘Substitution possibilitySECTION - XII
FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND.
RECOMMENDATION
Pol
iminium chloride is generally considered as a superior substitute for Alum in water
treatment.
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.
Poly Aluminium Chloride is presently produced by a few organisations in the country. The
demand for the product appears to be largely confined to areas near the production centre, in
view of the high cost of transportation of Polyaluminium chloride in liquid form.
‘The product can be transported over long distance in powder form, which would result in
higher sale price for the product.
‘Though Polyaluminium Chloride is considered as a superior flocculant, the use level in India
is still on the low side, perhaps due to the price factors as well as the absence of focussed
market development work.
Globally, Polyaluminium chloride is gaining importance, in view of its superior applications
and there could be scope for further exploitation of the global market.