1

CALCIUM CHORIDE

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

2

SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATIONS 1.1. Product Characteristics Appearance Cubic crystals, granules or fused masses. Very

hygroscopic in nature Alternate name Intergravin orales Molecular formula CaCl2 Molecular weight 110.99 Melting point 772 deg.C Boiling point >1600 deg.C Solubility Freely soluble in water, with liberation of much

heat), and alcohol. The commercial product is about 94-97% CaCl2.

The chief impurity is Ca(OH)2

LD50 in nice 42.2 mg/kg

Forms Deliquescent substance extremely hygroscopic and forms monohydrate, dihydrate, tetrahydrate and hexahydrate. Hydrates

Mol. Formula Mol. wt

Monohydrate (CaCl2 H2O) 129.01 Dihydrate (CaCl2 2H2O) 147.03 Hexahydrate (CaCl2 6H2O) 219.09 Dihydrate: Appearance Hygroscopic granules, flakes or powder Apparent (bulk density) 0.835 Solubility Freely soluble in water, alcohol Commercial grades contains 73 to 80% CaCl2 Hexahydrate Appearance Deliquesc, trigonal crystal Melting point 30 deg.C(losses all water molecules at 200 deg.C) Solubility Extremely soluble in water and alcohol 1.2. Specification of Calcium Chloride

3

Product Calcium Chloride 30% solution Specific gravity 1.3 pH 7.8 Product Calcium Chloride (Fused Powder)(Lumps) Colour White Purity 75% NaCl 1.5% max. SO4 0.01% Max Iron 0.01% max Water insolubles 0.1% max pH(10% Soln.) 7 to 8.5 Particle size 100% through 100 mesh BS Sieve Product Calcium Chloride Powder Colour White % CaCl2 85-90% pH(5% Solution) 7 to 8.5 Particle size 100% through mesh BS Sieve

4

SECTION II

PRODUCT APPLICATIONS Anhydrous Calcium Chloride The Anhydrous Calcium chloride is used in the following application sectors * Used as a drying and dehydrating agent for organic liquids and gases and in desiccators. * In dyestuff industries * In medicine as an electrolyte replacement and also as a diuretic, urinary acidifier and antiallergic agent. It may also be used intravenously in hypo-calcemic states such as milk fever. * As sizing agent in textiles, * For the preparation of brine solution in refrigeration plants * In the production of Calcium silicate, Calcium stearate, Dihyrate and Hexahydrate Calcium chloride The dihydrate and hexahydrate forms are used in the following applications In freezeproofing of coal and ores; and refrigerating solutions, In fire extinguishers, (a 40% solution freezes at -41 deg.C); As coagulant in rubber manufacture, As size in admixture with starch paste; In concrete mixes to give quicker initial set and greater strength Dust control on unpaved roads; Sizing and finishing of cotton fabrics, As brine for filling inflatable tires on tractors to increase traction.

5

SECTION III

INDIAN MANUFACTURERS

Indian manufacturers include the following: * Chandan Chemicals (P) Ltd., Regd. Off:15-7-5, Bapuji Nagar, Kovvur-534 350, West Godavari Dist. * Indian Alkaloids, 23/A, Balanagar, Hyderabad - 500 037 * Chem Pack Industries Shed No.7410, GIDC., Ankleshwar, Dist. Bharuch-393 002 * Crystal Clear Products C1-1031/9, GIDC, Panoli, Ankleshwar Phone : 02646-72593 & 72238 * Devi Organics Pvt. Ltd., Plot No. 42/2, Ist Phase, GIDC Industrial Area,Vapi-396195 * Ghanshyam Chemicals Shed No.7401, Near Link Pharma, GIDC, Ankleshwar, Dist. Bharuch-393 002 * Pravin Chemicals Plot No. 4769, GIDC., Ankleshwar,Dist. Bharuch-393 002 * Sameer Chemicals C-1/42, GIDC, Nandesari,

Baroda-391 340 * Unity Chemicals Plot No.313/14, GIDC., Ankleshwar, Bharuch-393 002

6

* Nuova Industrial Solvents, Geethanjali, Thammamnam P.O., Vyttila NH BY Pass Ernakulam,Kochi-32. * Atlas Chemicals 518, Rasta Peth, Near Daruwala Bridge, Pune-411 011 * Mehul Chemical Industries 12,Anand Deep Building, Dr. R.P. Road, Mulund (W),Mumbai-400 080 * Muby Chemicals Shed No.W-105, MIDC, Ambernath * Snow-white Products 23, Maheboob Mansion, 2nd Flank Road, Mumbai-400 009. * Vinipul Enterprises 1/5, Kanthari Colony, 2nd Road, Chembur, Mumbai-400 071. * Karthik Chemicals, 328/10-B,Pudukkottai Road, Aliyanilai, Aranthangi-614 616,Pudukkotai Dist. * Madurai Meenakshi & Co., 14-D, Manjanakara St.,Madurai 625 001. * Sri Sakthi Industries, Plot No.144,Nehru Nagar, Old Mahabalipuram Road, Chennai-600 041. * Vinayaka Crystal Products, 69/5B-Thattankulam Road, Uthangudi (Post),Madurai-625 107.

Indian installed capacity Around 80,000 tonnes per annum

7

SECTION IV

IMPORT/EXPORT TRENDS

4.1. Imports 4.1.1. Present import level : Around 3500 kg per annum 4.1.2. Countrywise Imports Period April 2001 to March 2002 Country

Quantity in Kgs

German F REP 2452 Indonesia 450 Japan 240 UK 30 USA 230 4.1.3. Sample of individual imports of Calcium Chloride Period 2001 Name of the Importers Quantity in

tonnes Value in Rs. Country Dates Port

- 0.010 2561 Norway 07.02.2001 to 20.02.2001

Mumbai

Serum Institute of India 0.006 3509 Germany 23.11.2001 to 29.11.2001

Mumbai

Serum Institute of India 0.150 1145870 Germany 23.11.2001 to 29.11.2001

Mumbai

8

4.2. Exports 4.2.1. Present export level Around 1700 tonnes per annum 4.2.2. Countrywise Exports of Calcium Chloride Period April 2001 to March 2002 Country

Quantity in Kgs

Baharain IS 40000 Bangladesh 57000 Congo P REP 4500 Israel 400 Malaysia 46000 Nepal 6370 Philippines 11000 Saudi Arab 402000 Singapore 18000 Sri Lanka 11900 Thailand 10000 U Arab Emts 1046068 4.2.3. Sample of individual exports of Calcium Chloride Period 2002 Name of the Exporters Quantity in

tonnes Value in Rs. Country Dates Port

Nandu Chemical Inds. 3.000 133735 Port Kelang 16.02.2002 to 28.02.2002

Mumbai

Nandu Chemical Inds. 0.200 16646 JebelAli 01.04.2002 to 30.04.2002

Mumbai

Nandu Chemical Inds. 4.000 208421 Port Kelang 01.04.2002 to 30.04.2002

Mumbai

Alok Enterprises 8.000 55370 Colombo 01.05.2002 to 31.05.2002

Mumbai

Alok Enterprises 8.000 55370 Colombo 01.05.2002 to 31.05.2002

Mumbai

Greenstar Impex P.Ltd., 0.020 10036 Djibouti 17.09.2002 to 31.09.2002

Mumbai

Dana Overseas P.Ltd., 0.050 3481 Lagos 17.09.2002 to 31.09.2002

Mumbai

Nandu Chemicals Inds. 3.000 136140 Port Kelang 21.06.2002 to 10.07.2002

Chennai

9

SECTION V

PRICE TRENDS

Basic price Rs.12 per kg Taxes and duties Extra as applicable

10

SECTION VI

INDIAN DEMAND Calcium chloride finds application in the following sector * Natural gas industry * Chemical Industry * Cement sector * Pharmaceuticals The estimated demand of Calcium chloride in the country is around 60,000 tonnes per annum. The estimated growth rate in demand is 5 to 6% per annum.

11

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS Manufacturing process Powdered lime stone or Calcite in 80/100 mesh size is reacted with dilute Hydrochloric Acid in agitated reactor. On completion of additions, the reacted mass is tested for free acid and neutralised with Hydrated lime. Due to high solubility, the Calcium Chloride formed will be in solutions. The Calcium Chloride solutionis then filtered using Filter Press. The filtered solution can be dried in a drier or evaporated in open pan evaporator. When evaporated, on attaining 70 to 75% concentration, CaCl22H2O will froth on liquid surface, which is removed, dried and packed. Alternate process Calcium Chloride can be produced from natural brines. It can also be produced by reacting Quick lime with Hydrochloric acid. Process from Natural brines Natural brines contain a mixture of Calcium and Magnesium chlorides. The brine after removal of bromine is rich in Calcium and Magnesium chlorides. The Magnesium chloride is removed from natural brine by treating the liquor with Calcium oxide (lime) which converts the Chloride into the hydroxide. The Magnesium hydroxide precipitates and is removed by settling and decantation. The purified brine is charged into evaporators and concentrated. The purified brine contains certain impurities such as Sodium chloride, which is very slightly soluble in concentrated solutions of Calcium chloride. The evaporation is continued until the specific gravity of the liquor reaches 42 Be. Practically, all the sodium chloride salt crystallises at this point and can be settled out, the classified liquor is decanted from the evaporator and pumped into a single effect pan. The liquor is further concentrated until solid contents of 75% are reached. The molten mass is discharged into steel drums where it solidifies on cooling. It can also be sent to flakers. The product is known as 75% Calcium chloride and corresponds to a formula CaCl22H2O.

12

Process from Quick lime Calcium chloride hexahydrate would be manufactured by treating quick lime with Hydrochloric acid. The product of reaction would be filtered to remove the impurities and separate Calcium chloride solution. The clean Calcium chloride solution would be concentrated in an open pan evaporator to solubility level. The concentrated solution would then be cooled in a crystalliser to crystallise the product as Calcium chloride hexa hydrate. If anhydrous Calcium chloride would be required, the hydrated product would be dried in a rotary dryer at temperature level of around 200 deg.C. On heating, hexahydrate would first lose 4 molecules of water to form the dihydrate CaCl22H2O and would finally become anhydrous on fusion. Process flowsheet Sources of technology Indian technology suppliers include the following * Sudarshan Engineering and chemical Corporation, Bungalow-19,someshwar complex-11, Near Bidiwala Park, Satellite Road, Ahmedabad-380 015 * T.S. Enterprises, Works: E-416 Road No.14 Vishwakarma Ind.Area, Jaipur-302 013

Hydrochloric acid

Lime stone

Reactor Filter Drier

Product

Pulveriser

13

Major plant and machinery suppliers

Name of the equipment Name of the suppliers

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

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

Filter press

Fluid Control Equipments 77/574, Mount Road, Chennai-600 006 Sri Ranga Industries SF, 739, Ramraj Nagar, Goldwins, Coimbatore-641 014

14

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

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

15

SECTION VIII

RAW MATERIAL REQUIREMENTS AND AVAILABILITY Raw material requirement Basis One tonne of Calcium chloride Limestone/Calcite 750 kgs Hydrochloric Acid (of strength 30%) 1650 kgs Raw material availability Name of the raw material

Name of the supplier

Limestone

Indegenously available

Hydrochloric acid DCW Ltd., Tamilnadu SPIC, Chennai Chemplast Sanmar Ltd., Salem

16

SECTION IX

GLOBAL SCENARIO

Global demand: Around 4 million tonnes per annum Global growth rate in demand: 0.5 to 1.0% Factors influencing the growth rate in demand Major global producers The major global producers include the following * Allied Chemical Canada Ltd., 201, City Centre Div., Mississauga Ontario L5B 3A3 * HMZ a.s Zahradni 46, CZ-79201, Bruntal Czech Republic * Kemira OY Kemira Fine Chemicals Porkkalankatu 3, PO Box 330, FIN - 00101 Helsinki, * Bayer AG Organic Chemicals Business Group Organic Fine Chemicals Life Science Intermediates * Chemische Fabrik Kalk GmbH Postfach 910157 Kalker Hauptstr.22 D-5000Koln 91

As a drying and dehydrating agent for Organic liquids and gases

17

* Central Glass Co, Ltd. Kowa-Hitotsubashi Bldg. 3-7-1, Kanda-Nishiki-Cho Chiyoda-ku, Tokyo 101 * Fuji Kasei Co Ltd., 13-16, Awaza 1-chome Nishi-ku, Osaka * Vitro Chemicals Industria del Alcali SA de C.,V �Carrettera a,Garcia Km.9, Garcia, N.L. Mexico 66000 * Taiwan Calcium Chloride Co. Ltd., 23, Lane 55, Han-Chang St., Kaohsiung/669, Kaohsiung * Schweizerische Soda Fabrik Barengasse 29 CH-8022, Zurich * Brunner Mond (UK) Ltd., PO Box No. Northwich, Cheshire CW8 4DT, UK. * AC Industries Inc, Sattva Chemical Co. Div 2, landmark Sq, Suite 214, Stamford, CT 06901-2640 * Coughton Products Corp., 101 Oliver Street, P.O.Box 1888, Paterson, NJ 07509 * General Chemical Corporation 90, East Halsey Road, Post Box No.393 Parsippany, New Jersey NJ 07054-0397 * Hill Brothers Chemical Company 1675 North Main St., Orange, California 92667 * International Chemicals Inc., One World Trade Centre, Suite 8665, New York 10048

18

* Jarchem Industries, Inc. 414, Wilson Ave, Newark, New Jersey 07105 * PBC Industries 2850 Golf Road, Rolling Meadows, IL 60008 * Brunner Mond (UK) Ltd. PO Box No. Northwich, Cheshire CW8 4DT, UK. Global demand supply scenario The supply situation is comfortable. General Chemical restarted production at a 250000 metric tonnes per year Calcium chloride plant at Manistee, MI earlier this year due to strong demand. Dow is increasing all off-list packaged and bulk prices of Calcium chloride by atleast $20 per tonne. Prices had fallen too low, given increases in production and distribution costs.

19

SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS

Economic capacity : 2400 tonnes per annum Project cost : Rs.104 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs 1.1 Cost of land of 2 acre at Rs.5.5 lakh per acre 11 1.2 Cost of levelling, laying internal roads/fencing and

compound wall

1.1

Subtotal 12.1 2. Building S.No. Description Cost

Rs.in lakhs 2.1 Factory building of area 150 sq.m. at Rs.3200/sq.m. 4.8 2.2 Non-factory building of area 70 sq.m.at Rs.4500/sq.m. 3.15 Subtotal 7.95 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs 3.1 Cost of basic plant and machinery 27.5 3.2 Instrumentation and control 2.1 3.3 Pipelines and valves 2.8 3.4 Structurals for erection 1.4 Subtotal 33.8 3.5 Octroi, excise duty, sales tax, etc.at 12%� 4.1 3.6 Packaging and insurance charges (2%) 0.68 3.7 Transportation charges (2%) 0.68 3.8 Machinery stores and spares (2%) 0.68 3.9 Foundation charges (2%) 0.68 3.10 Installation charges (2%) 0.68 Total cost of plant and Machinery 41.3

20

4. Technical know-how fees Rs.1.50 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs 5.1. Electrification 1.7 5.2. Steam boiler and auxillaries 1.7 5.3. Water storage tank, borewell etc. 1 5.4. Fuel storage tank 1 5.5. Laboratory equipment 1.30 5.6. Office machinery & equipment 1.50 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 1.50

5.8. Diesel generator 4.4 5.9. Effluent treatment 1.3 Total 15.4 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs 6.1. Preliminary expenses 1.2 6.2. Pre-operative expenses:- - 6.2.1 Establishment 1.00 6.2.2 Rent rates and taxes 1.30 6.2.3 Travelling expenses 1.70 6.2.4 Interest and commitment charges on borrowings 4.8 6.2.5 Insurance during construction period 1.0 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 11 7. Provision for contingency Rs. 4.9 lakhs 8. Working capital margin Rs. 9.34 lakhs 9. Total project cost Rs.103.5 lakhs Say Rs.104 lakhs 10. Means of Finance Promoter's contribution Rs.42lakhs Term loan from financing institutions Rs.62 lakhs Total project cost Rs.104 lakhs

21

11. Financial statements Cost of production A Variable cost

Rs. in lakhs

Raw material and utilities 160.2 Spares and maintenance 2.5 Selling expenses 14.4 Total variable cost (A)

177.1

B Fixed cost

Salaries and wages 12 Interest on term loan and working capital loan 16.2 Depreciation 5.76 Administrative expenses 8.64 Total fixed cost (B)

42.6

C. Total cost of production (A+B)

219.7

D. Selling price per kg. (in Rupees)

12

E. Annual sales turnover

288

F. Net profit before tax (E-C)

68.3

G. Breakeven point in %

39%

22

SECTION XI

SWOT ANALYSIS

Strength

Adequate availability of raw material

Weakness Lack of competitiveness in the global market

Opportunity Growing demand

Threat Competitive conditions

23

SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS

Calcium chloride is a low technology product The demand is likely to go up with the overall industry growth in the country. The project could be set up if there would be specific advantages for the promoter