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INDUSTRY WATCH - Chemical World

May 2011


th ANNIVERSARY

EDITORIAL

The sustainable stimulant

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elcome to the 7th Anniversary Edition of ‘Chemical World’, in a year declared as the ‘International Year of Chemistry’ by the United Nations Organization. This underlines the growing importance of the chemical industry in effectively meeting the needs and challenges of the present as well as future. In fact, it is the future that needs to get the maximum mindshare while providing for today’s demands. In this direction, sustainability is the mantra for the next practices! Amid rising eco-awareness and fast depleting natural resources, sustainable development is no longer a matter of option but a commitment towards the next generation. For the chemical and process industry, this marks a mega trend and calls for action in several areas ranging from reducing energy intensity of the operations to minimising effluent discharge, and from increasing the share of recyclable products in the portfolio to diversifying the raw material base to include bio-feedstock, among others. The big question is how the Indian industry is gearing up for both – to ride on the demands of a fast-growing domestic market (poised to touch $ 200 billion in 2020 from $ 83 billion in 2010, as per a recent estimate) and to produce sustainable

Business Insights Technologies Opportunities

Editor : Manas R Bastia Assistant Editor: Rakesh Rao Senior Features Writer: Prasenjit Chakraborty Features Writer: Mahua Roy Copy Editor: Marcilin Madathil Edit Associate - Products: Paskaline Sebastian Assistant Art Director: Varuna Naik Chief Photographer: Mexy Xavier Photographer: Neha Mithbawkar, Joshua Navalkar Design: Mahendra Varpe Production: Vikas Bobhate, Pravin Koyande, Dnyaneshwar Goythale, Ravikumar Potdar, Ravi Salian, Sanjay Shelar, Lovey Fernandes, Pukha Dhawan, Varsha Nawathe, Akshata Rane, Abhay Borkar Marketing & Branding: Jagruti Shah, Ganesh Mahale CEO-Publishing: Sandeep Khosla Associate Vice President: Sudhanva Jategaonkar Subscription: Sunil Nair, Distribution Head Email: sunil.nair@network18online.com, customercare@infomedia18.in Tel: 91-22-3003 4631/4633

products and technologies – in the face of some inherent challenges such as deficient infrastructure, disadvantaged feedstock supply and application of the latest technology. It is imperative to focus on capacity creation, higher R&D spend, ‘industry ready’ human resources besides resolving infrastructural and regulatory issues on a priority basis. This special edition – in a new avatar – reflects all these and more! Turn to ‘Industry Outlook’, ‘Trend Analysis’, ‘Market Review’ and the special ‘Sector Watch’ section (with seven distinct growth enablers) to discern what some of the captains of the global chemical and process industries have to opine, particularly in the next leap towards sustainability. Plus, there is much more interesting and useful information inside, with new design elements… Believe, you will benefit from exploring this focussed mix of latest news, views and analysis as much as we at ‘Chemical World’ enjoyed putting it together. Have a good read and looking forward to your valuable feedback!

Editorial Advisory Board Pothen Paul Executive Chairman, Aker Powergas Pvt Ltd D P Misra Director, TCE Consulting Engineers Ltd and Former Director General, ICC P D Samudra Executive Director (Sales) & Member of the Board, Uhde India Ltd

Manas R Bastia Editor manas@infomedia18.in

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Printed by Mohan Gajria and published by Lakshmi Narasimhan on behalf of Infomedia 18 Limited and printed at Infomedia 18 Ltd, Plot no.3, Sector 7, off Sion-Panvel Road, Nerul, Navi Mumbai 400 706, and published at Infomedia 18 Ltd, ‘A’ Wing, Ruby House, J.K.Sawant Marg, Dadar (W), Mumbai - 400 028. Chemical World is registered with the Registrar of Newspapers of India under No. 14798/2005. Views and opinions expressed in this publication are not necessarily those of Infomedia 18 Limited. Infomedia 18 Limited reserves the right to use the information published herein in any manner whatsoever. While every effort has been made to ensure accuracy of the information published in this edition, neither Infomedia 18 Ltd nor any of its employees accept any responsibility for any errors or omission. Further, Infomedia 18 Ltd does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition. No part of this publication may be reproduced in any form without the written permission of the publisher. All rights reserved. Editor: Manas R Bastia

May 2011 | Chemical World

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CONTENTS

th ANNIVERSARY

LEADERS SPEAK

STRATEGISTS SPEAK

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“We consider BRIC countries to be among the markets with the highest growth potential” Dr Rudolf Staudigl, President & CEO, WACKER Chemie AG

36 INDUSTRY OUTLOOK

Changing dynamics in chemicals: Spurring a spectrum of opportunities Pratik Kadakia, Practice Head – Chemical & Energy, Tata Strategic Management Group

“One of the biggest challenges faced is regarding efficient use of resources” Ralf Blauth Chief Human Resources Officer, and Member of the Executive Board, Evonik Industries AG

20

TREND ANALYSIS 24

M&A activities: Creating the right chemistry Aashish Kasad, Partner, Ernst & Young

MARKET REVIEW 26

Tracks the performance of key sectors

SECTOR WATCH Chemical industry: ‘Root’ing for a sustainable future 30 Experts offer insights on seven areas R ENERGY MANAGEMENT

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“Individuals and organisations must realise that the onus is on them to work towards creating a cleaner and greener future” R Mukundan Managing Director, Tata Chemicals Ltd

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R PROCESS ENGINEERING

46

R R&D

54

R CLEAN ENVIRONMENT

62

R ENGINEERING, PROCUREMENT AND CONSTRUCTION

70

R SUPPLY CHAIN MANAGEMENT

78

R SAFETY & MAINTENANCE

84

INDUSTRY UPDATE Next-generation biofuels: Offering ‘clean’ alternatives Tomasz Kaminski, Research Analyst - Renewable Energy, Frost & Sullivan

88

MANAGEMENT MANTRAS Managing carbon footprints: A must to gain competitive advantage Suresh Lulla, MD, Qimpro Consultants Pvt Ltd

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90

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R EG U L A R S EC TI O N S Editorial ...................................................... 7 National News ......................................... 10 World News............................................. 14 Events Calendar ....................................... 92 Product Update........................................ 96 Product Index......................................... 101 Advertisers’ List ..................................... 102

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Highlights of Next Edition Sector Watch

:

Engineering, Procurement & Construction (EPC)

Industry Update

:

Pollution Control

Note: ` stands for Indian rupee, $ stands for US dollar and £ stands for UK pound, unless mentioned otherwise

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Chemical World | May 2011

Details on page no. 34, 92


NATIONAL NEWS

th ANNIVERSARY

LUMPSUM TURNKEY PROJECT

NEW FACILITY

Tata Chemicals to invest in ammonia-urea fertiliser complex in Gabon Tata Chemicals Ltd (TCL) recently announced an investment of $ 290 million to acquire a 25.1 per cent stake as a strategic investor in the stream 1 of a greenfield port-based ammonia-urea fertiliser manufacturing complex in the Republic of Gabon (RoG). The balance shareholding will be held between Olam International Ltd (Olam) and RoG. This ammonia-urea venture in Gabon R Mukundan will ultimately result in setting up of two streams, each of 1.3 million TPA of urea with matching ammonia capacity for which feedstock agreement at competitive fixed prices has already been entered into with the RoG. Execution work on stream 1 of 1.3 million TPA of urea has already commenced and it is expected to be commissioned in three years time. TCL is expected to hold significantly higher stake in stream 2. Combined, the project is envisaged to have a capacity of 2.6 million MT pa. TCL with its existing expertise to run efficient fertiliser plants will provide the project management consultancy and operations & maintenance service, post the project commissioning. The Government of Gabon has given a 10-year tax holiday after commencement of commercial production and a 10 per cent concessional tax rate thereafter. R Mukundan, Managing Director, TCL, said, “This plant is envisaged to be one of the lowest cost urea manufacturing facilities globally. Strategically located near Gabon’s main seaport, it also enables efficient and cost-effective material handling and proximity to target markets, ie Africa, North America, Latin America and India. Up to 25 per cent of the production will be reserved for sales in India through the existing TCL network.”

Essar Projects (India) awards project to Uhde India Essar Projects (India) Ltd has signed a lumpsum turnkey contract with Uhde India for designing and constructing 2 x 5,000 MT cryogenic ammonia storage Tanks at Matix Fertilisers and Chemicals Ltd’s upcoming gas-based ammoniaurea complex at Panagarh, West Bengal. Essar Projects is responsible for building the ammonia-urea complex. Uhde India will render basic design, detailed engineering, supply of equipment, project management, site management supervision services, erection, mechanical completion, commissioning services and guarantee test run for the ammonia storage tanks. Uhde India will deploy its state-of-the-art ‘cup-in-tank’ doublewalled cryogenic technology for the tanks. Mechanical completion for the project is scheduled for the first quarter of 2012. Matix Fertilisers and Chemicals is a flagship company of Matix Group and is committed to building a stateof-the-art fertiliser complex, using coal bed methane gas. In the first phase of the project, the Group will build a 2,200 TPD ammonia – 3,850 TPD urea plant. Uhde India is among the leading EPC consultants in India for the design and construction of cryogenic storage tanks for a variety of liquefied chemicals including ammonia, ethylene, LPG, etc.

FLUOROCHEMICALS

PERFUMERY BUSINESS

NFIL acquires Manchester Organics

DRT acquires Crown Chemicals, India

Navin Fluorine International Ltd (NFIL), a part of the Arvind Mafatlal Group, recently has acquired a 51 per cent stake in the UK-based company Manchester Organics for £ 4.335 million. “Acquiring a majority control in Manchester Organics will be an important step for NFIL in its aspirations to become one of the major global companies in specialised fluorination chemistries,” said Hrishikesh A Mafatlal, Chairman, Arvind Mafatlal Group. Manchester Organics specialises in laboratory scale multi-step synthesis of a wide variety of organic compounds.

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Chemical World | May 2011

One of the global leaders in the development of rosin and turpentine extracted from pine resin, DRT has announced the purchase of shares in Crown Chemicals, specialised in the manufacture of synthetic piperonal. It is estimated that around 5 million trees are cut down each year to meet the worldwide demand for piperonal, and the equivalent of one football field of forest area is destroyed to yield 100 kg of this substance. Soon this resource will be completely wiped out. These alarming figures drove Crown Chemicals to focus its efforts on developing a synthetic route to Paul Menacherry, President, Crown Chemicals, and manufacture piperonal. Crown Chemicals is a subsidiary Laurent Labatut, CEO, DRT of Anthea Aromatics, DRT’s Indian partner. Through this new investment, DRT reaffirms its commitment to the development of sustainable chemistry solutions for the perfumery industry.


NATIONAL NEWS

NEW FACILITY

ACQUISITION

Ruia College inaugurates Advanced Instrumentation Centre

Rhodia completes the acquisition of PI Industries’ engineering plastics business

One of the premier institutes for higher science education in Mumbai, Ramnarain Ruia College, recently inaugurated an Advanced Instrumentation Centre. The facility was inaugurated and generously supported by Dr K H Gharda, Chairman and Managing Director, Gharda Chemicals and Tsuguo Kishida, Senior Management team of Rhodia Engineering Plastics

Specialty chemical producer Rhodia has completed the acquisition of the engineering plastics business of the Indian company PI Industries Ltd (PIIL). Rhodia Polymers & Specialties India Pvt Ltd is the name of the legal entity created to host Rhodia’s newly integrated assets, Dr Gharda (right) and Dr Pednekar at the inauguration

Managing Director, Shimadzu AsiaPacific. Shimadzu Analytical sponsored the state-of-the-art equipment which includes advanced chromatographic and spectrophotometric instrumentation. “The centre aims to cater to the industry’s requirements through sample analysis, method validation, etc, to establish a strong industry-academia partnership. Also, the centre will undertake various training programmes for industry personnel and teachers looking to upgrade their skills,” said Dr Suhas Pednekar, Principal, Ramnarain Ruia College.

STRATEGIC DECISION

RIL plans $ 12 billion investment in chemical business Reliance Industries Ltd (RIL) is investing up to $ 12 billion in the chemicals business to tap the rapidly growing market for hygiene and healthcare products. Reliance has the advantage of massive plants such as the world’s biggest refining complex at Jamnagar that can supply feedstock used in the chemical industry. Mukesh Ambani, Chairman, RIL, indicated that the new business will be built at existing locations. The feedstock-based units will be at the refining hub of Jamnagar. In the rubber market, Reliance sees huge opportunities in India and the rest of Asia. “We are developing a whole new rubber business. We will make RIL one of the world’s largest players in rubber as the global tyre industry moves to Asia. The big trend is that, if you look at the next 10 years, the projections for automobile growth is all China, India and Asia focussed,” he informed. Ambani added that the company sees many opportunities, as living standards are increasing, to invest in both new and traditional businesses. “The quality of life is improving in India, so we see a lot of growth in polyester and plastics segment. Therefore, we are reinvesting in these traditional businesses of RIL,” he said.

CHLOR ALKALI

Aditya Birla Group buys Kanoria Chemicals unit The Aditya Birla Group has acquired the chloro-chemicals unit of Kanoria Chemicals & Industries for ` 830 crore. The deal will make Aditya Birla Group India’s largest producer of chlor-alkali, a critical input in the aluminium sector, said Kumar Mangalam Birla, Group Chairman, in a press release.

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Chemical World | May 2011

including one industrial facility based in Panoli, Gujarat, R&D capabilities as well as logistics network in India. “We received enthusiastic feedback from both PIIL and Rhodia’s customers & suppliers regarding this strategic move. All our international partners in the region as well as domestic Indian players are fully confident about our ability to accelerate their growth through a rapid expansion of our activity,” said François Hincker, President, Rhodia Engineering Plastics. This acquisition is a major step in Rhodia Engineering Plastics’ growth ambition in India, aiming at doubling its local production capacities to represent 15 per cent of Indian polyamide compound market by 2015.

The deal will help boost the supply of feedstock caustic soda, used to make alumina that is refined to produce aluminium, to flagship Hindalco’s aluminium producing unit at Renukoot in Uttar Pradesh. “Kanoria’s plant is located close to Hindalco’s unit in Renukoot. After meeting the captive

requirements, we will sell the rest to units in eastern India, which is fast emerging as a growing market for aluminium production,” said Lalit Naik, Business Head (Chemicals), Aditya Birla Group. The deal will cover 1,15,000 tonne per annum (TPA) caustic soda plant with associated chlorine derivatives, 50 MW captive power plants with coal linkage and salt works at Gandhidham, Gujarat.


WORLD NEWS

th ANNIVERSARY

BUSINESS TRANSACTION

STRATEGIC MOVE

Arkema emerging as a major supplier in the paint and coating industry Arkema is likely to assume ownership of Total’s coating resins and photocure resins activity in mid-2011. On completion of the acquisition, Arkema will have a unique and comprehensive portfolio of coatings materials and technologies. The current acquisition is the latest in a series of acquisitions over four years that will make Arkema a leading supplier of paints and coatings around the world. The company gained this new positioning by presenting its comprehensive offering focussed on innovation and sustainability to the main market players at the recently held European Coatings Show in Nuremberg. It is expected that by the end of 2011, Arkema’s revenue from paint and coating applications would rise to 18 per cent, up from 3 per cent of its overall sales in 2006. “In the last five years, our investments combined with targeted acquisitions have confirmed our commitment to the coating and paint market. The year 2011 looks promising for us. We are well-poised to become one of the major suppliers to this market during this year,” said Thierry Le Hénaff, Chairman & Chief Executive Officer, Arkema. With a global reach in most of its product lines, Arkema is committed to further expand in order to assist its customers in every continent.

Clariant closes Süd-Chemie acquisition Clariant, a world leader in specialty chemicals, recently announced that it has completed the purchase of 96.15 per cent of the shares in Süd-Chemie. Clariant will make a public offer to acquire the outstanding shares from Süd-Chemie minority shareholders. The overall transaction value amounts to Euro 1.9 billion (CHF 2.5 billion). “This transaction is an important milestone in Clariant’s history. Following the successful completion of our restructuring in 2010, the acquisition of Süd-Chemie accelerates our strategy of profitable growth,” said Hariolf Kottmann, CEO, Clariant. He further added, “Together we will now start the integration process to successfully integrate Süd-Chemie into Clariant.” By acquiring leading positions in the fields of process catalysts and adsorbent agents, Clariant is expanding its portfolio with two fast-growing business units.

ACQUISITION

MARKETING STRATEGY

IHS acquires Chemical Market Associates Inc

RHPS series regulators now available from Swagelok

IHS has acquired petrochemical consulting business, Chemical Market Associates Inc (CMAI), making the highly regarded analyst of chemicals and plastics markets its fifth acquisition through the first four months of 2011. “CMAI’s unique and proprietary chemical information, analysis business and price discovery consulting made the firm attractive to IHS and will complement to its own commodities and cost information offerings,” said Jerre Stead, Chairman & CEO, IHS. CMAI’s clients include chemical, oil & gas, technology & engineering companies, as well as financial institutions, plastic converters, manufacturers, retailers, government agencies, and trading & shipping companies. In addition to regular published reports, the company provides customised analysis and produces events, including the annual World Petrochemical Conference.

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Chemical World | May 2011

RHPS series high flow pressurereducing and back-pressure regulators are now available across the globe through authorised Swagelok sales and service centres. Swagelok acquired RHPS BV, now operating as Swagelok BV, in April 2010 as part of its strategy to broaden product and services for fluid system customers around the world. RHPS series products are based on more than 20 years of engineering expertise for applications in the chemical, petrochemical, oil & gas, power, biopharmaceutical, semiconductor and alternative fuels industries. Key products for pressure control are now also available through Swagelok, which include pressure-reducing regulators, including both spring-loaded and dome-loaded models. These are designed for general industrial applications. Similarly, back-pressure regulators are available in both spring-loaded and domeloaded models, and are designed for general industrial purposes. Headquartered in Ohio, Swagelok is one of the leading providers of fluid system solutions, including products, assemblies and services for research, instrumentation, pharmaceutical, oil & gas, power, petrochemical, alternative fuels, and semiconductor industries. Its manufacturing, research, technical support and distribution facilities support a global network of more than 200 authorised sales and service centres in 57 countries.


WORLD NEWS

JOINT VENTURE

APPOINTMENT

KEPCO-Uhde Inc to co-operate in the field of coal gasification

Robert Hansen new CEO of Dow Corning

KEPCO, the largest utility in South Korea, and Germany-based Uhde, one of the largest technology-driven EPC contractors, have recently signed a Joint Venture Agreement. The contract was signed at the head office of Uhde in Dortmund, Germany, in the presence of Ssang-su Kim, CEO, KEPCO, Dr Heinrich Hiesinger, CEO, ThyssenKrupp AG and Dr Michael Thiemann, CEO, Uhde. KEPCO will have the largest share (66 per cent) in the newly established joint venture, with Uhde holding 34 per cent. Under the agreement KEPCO-Uhde Inc will use Uhde’s PRENFLO PSG steam gasification process to carry out global projects in IGCC (Integrated Gasification Combined Cycle) and SNG (Synthetic Natural Gas) engineering, licensing and technology development. Uhde is a globally recognised engineering company which holds gasification technology essential for IGCC and SNG. Uhde’s proven PRENFLO PSG process has been used in an IGCC power plant in Puertollano, Spain, which is in operation, boasting one of the highest efficiency in the world. “We are pleased about this partnership with KEPCO, and look forward to building a number of PRENFLO gasification-based plants through our Joint Venture,” said Dr Thiemann.

Dow Corning Corporation’s Board of Directors elected Robert D Hansen as CEO of Dow Corning with immediate effect. Hansen has been employed with Dow Corning for 29 years and was named President in November 2010. He will continue to serve as President. He joined Dow Corning’s Finance Function in 1982, in Midland. Six years later, he relocated to Brazil as Regional Finance Manager, returning to the US in 1992 as Economic Evaluator and Controller for the Rubber Business. Hansen became the Manager for the Robert D Hansen South American region in 1996. Following that, he had numerous roles including Product Line Management, Procurement Director and Global Oversight for Dow Corning’s Construction Business before being named European Area President in 2002. Hansen was named Vice President and General Manager of the Core Products Business in 2005, and was subsequently promoted to Executive Vice President. A graduate of Valparaiso University, with a Bachelor of Science degree in business administration, Hansen now serves on the university’s Board of Directors. He is also actively involved in the community serving on the Board of Directors for Junior Achievement of Central Michigan and Midland County United Way. He was the chair of Midland’s 2010 United Way campaign. FINANCIAL PERFORMANCE

Dow Chemical Q1 profit jumps 34 per cent Dow Chemical company’s first-quarter earnings rose 34 per cent as the company continued to benefit from a broad manufacturing rebound, resulting in double-digit increases in sales across its businesses and stronger prices supporting margins. Dow has seen sales rebound in recent quarters on volume growth in basic chemicals, agriculture products and other units. Stronger demand and

price increases have been offsetting higher purchased feedstock and energy costs. The company recently unveiled an expansion of its US capacity to produce ethylene, thanks to lower prices of natural gas liquids, a key input. “With our transformed business portfolio and broad geographic presence, we have now achieved eight consecutive quarters of margin growth,” said Andrew Liveris, Chairman & Chief Executive, Dow.

PRODUCT LAUNCH

Camlab offers new filtration solution The Cambridge-based laboratory supplier, Camlab is now exclusively offering a new environment-friendly solution from ERLAB in the form of the new energy saving Green Fume Hood range. The solution offers all the benefits of traditional filtration hoods while solving the problem of limited filter selectivity. Green Fume Hood features a new carbon-based filtration unit

16

called Neutrodine®, which can be used for all types of chemical (previously five filters were required), and can handle around 99.8 per cent of laboratory chemicals with up to 50 per cent improvement in retention capacity. Although safety fume hoods allow users to work safely when handling dangerous chemicals, they

Chemical World | May 2011

also consume huge amount of energy in the process. The energy drain is principally because safety fume hoods often run 24 hours a day to maintain the air balance in a building and consequently waste energy by constantly expelling heated/cooled air as well as pumping noxious contaminants directly outside into the surrounding environment.


LEADERS SPEAK

th ANNIVERSARY

“We consider BRIC countries to be among the markets with the highest growth potential” …says Dr Rudolf Staudigl, Staudigl President & CEO, WACKER Chemie AG. He did his graduation in chemistry in 1978 from the LudwigMaximilian University, Munich, Germany, and post-doctoral fellowship from the Harvard University, Cambridge/MA, USA. In this conversation Chakraborty with Prasenjit Chakraborty, Dr Staudigl discusses the importance of sustainable development and WACKER’s business strategies.

Sustainable development in the chemical industry In the light of scarcity of natural resources, sustainable development has indeed become a necessity that nobody can ignore. It affects the way we live, the products we buy, and the industrial processes to produce them. According to numerous experts, megatrends, such as rising energy & environmental awareness, urbanisation, digitisation & mobility, will increasingly stimulate demand for sustainable products and technologies. And this is not only true for industrialised countries. By virtue of their increasing prosperity and their desire to improve living conditions, emerging countries will be the key drivers of these megatrends in future. As a result of the growing economy in BRIC (Brazil, Russia, India, China) countries, the global chemical market is set to double over the next 25 years. We

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Chemical World | May 2011

contribute to sustainable development by offering products, which serve these trends. At the same time, we continuously improve the sustainability and efficiency of our own production processes.

Steps adopted in this direction We are convinced that companies can only be profitable in the long term, if they are serious about their responsibility towards environment and society. Sustainability has thus been firmly rooted in both our production and business processes for many years. We are operating highly integrated material loops at all major production sites in Germany and China. We use byproducts from one production stage as starting materials for other products. And we recycle required auxiliaries, such as chlorine. This makes our processes extremely efficient and cost-effective, thereby offering economic advantage. This approach minimises


LEADERS SPEAK

energy and resource consumption too. Our sustainability activities are also underpinned by our membership in global initiatives such as Responsible Care and the UN’s Global Compact.

Towards sustainability Sustainability is a broad issue and embraces many topics. For instance, we constantly increase the energy efficiency of our processes. At WACKER’s German sites in Burghausen and Nünchritz, steam and electricity are produced in cogeneration systems. These combined heat and power plants have more than 80 per cent fuel efficiency twice that of conventional power generation plants. In our closed-loop production systems, we recycle byproducts and process aids such as chlorine, thus minimising the consumption of resources. We also recycle heat and steam. We leverage the heat from our processes at the Burghausen and Nünchritz sites as an energy source for other processes. In this way, less energy is needed, which results in significantly lower carbon dioxide emissions. And last but not the least, our operational processes are certified according to international ISO standards.

Polysilicon business WACKER’s polysilicon division has been extremely successful in recent years. Today, we are one of the leading polysilicon manufacturers in the world and an important contributor to the global success of the solar industry. A key competitive factor is our technological leadership, which enables us to produce high-quality polysilicon at a low cost. In 2010, the division reinforced its role as a growth driver and earnings engine for the whole Group, making up for 25 per cent of Group sales. Robust demand, especially from the solar industry, and additional production output boosted the division’s sales by 22 per cent to almost Euro 1.4 billion. In 2010, we produced over 30,000 metric tonne of polysilicon. This is about onethird more than that a year ago. Last year, we concluded a series of high-

volume, multi-year contracts, involving prepayments by customers for future deliveries. As a result, our entire output – both from existing sites and plants under construction – is virtually sold out until the end of 2014. In order to serve the ever-increasing demand of our customers for highquality polysilicon, we have several projects under way to substantially increase our production capacity. In 2010, we pushed ahead with the construction of our polysilicon plant in Nünchritz, Germany. We will bring the plant on stream before the end of this year. We decided to further expand our production capacities in Burghausen and Nünchritz by about 10,000 metric tonne per year. First volumes from these expansion measures are expected to be available in 2012. And finally, we are building a new production facility in Tennessee, USA, which is expected to be completed by the end of 2013. It will boost our capacity by another 15,000 metric tonne. Totalling about Euro 1.1 billion, the project is WACKER’s single-largest investment ever. All in all, WACKER’s total hyperpure-polysilicon production capacity will increase to 67,000 metric tonne by 2014.

Business prospects for WACKER in BRIC countries We consider BRIC countries to be among the markets with the highest growth potential. Over the past few years, we have been especially active in China, successfully enhancing our sales, services and production operations. We also achieved substantial growth in Brazil and India. And we expect aboveaverage growth in these markets to continue. Rising prosperity in emerging countries – such as Brazil, China and India – is prompting, higher per capita consumption of silicone products – a development we support with our high quality silicones. Additionally, stringent quality demands are accelerating the process of substituting simple products with value-added products

Over the past few years, we have been especially active in China, successfully enhancing our sales, services and production operations. We also achieved substantial growth in Brazil and India. And we expect above-average growth in these markets to continue. incorporating silicones, which makes us confident that our silicones division will remain on its growth path in 2011. In China, we will continue expanding our Nanjing production operations where we manufacture dispersions and dispersible powders for the construction industry. And with our respective knowhow, we aim to extend our market leadership for gumbase and tap into Asia’s high growth opportunities. In India, we are successfully operating a joint venture to serve the local silicone market. And in our technical centre in Mumbai, we are developing specific solutions for customers in India.

Specific plans for Asia Over the next two years, WACKER will bring significant additional production capacity on stream to serve Asian markets. In 2011, the most important start-up is the Poly 9 expansion stage in Nünchritz, Germany, with a nominal capacity of 10,000 metric tonne. But we are also pushing ahead with key projects in Asia. For 2011, we expect further production capacity expansion at our Siltronic Samsung wafer joint venture in Singapore. This year will also see the ramp-up of a second production unit for pyrogenic silica and an expansion of silicone sealants at our Zhangjiagang site in China. So, all in all, we are investing a considerable amount of efforts to grow in Asia and other emerging countries, which will continue to be among our most important markets for the future.

May 2011 | Chemical World

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INDUSTRY OUTLOOK

th ANNIVERSARY

Changing dynamics in chemicals

Spurring a spectrum of opportunities With Asia’s increasing contribution to the global chemical industry, India emerges as one of the focus destinations for companies worldwide. The Indian chemical industry is expected to grow on the back of rising domestic demand and potential for exports. The high growth in enduse industries and increasing per capita consumption of chemicals are all set to play a catalytic role that will elevate the industry to reach colossal heights.

Pratik Kadakia

T

he global chemical sales in 2010 was valued at $ 3.4 trillion. In major developed and emerging economies, chemical sales account for about 5-6 per cent of the total GDP, which underlines the contribution of this industry. The global recession in the recent past has had a profound impact on the chemical industry, with the growth rates dropping considerably in 2009. Apart from the Asia-Pacific region, all other regions witnessed a sharp decline in chemical production growth in the 2004-2009 period compared to the 1999-2004 period. The global chemical industry restored its momentum in 2010, with growth led by emerging markets of China and India. The growth in these Asian economies is characterised by huge local demand. These countries also act as the production hubs for Western countries. This is part of a larger global trend of chemical production moving eastwards in line with the shift of key consumer industries (eg automotive, electronics, etc) to leverage greater manufacturing competitiveness of the emerging Asian economies. This has also contributed to the rise of Asian chemical giants such as Sinochem, SABIC, etc, which, besides growing in their respective domestic markets, have also used cross-border acquisitions/alliances to gain access to global markets, feedstock and technology.

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Chemical World | May 2011

On the global front With rising concerns around climate change and depleting natural resources, focus on sustainability is a major trend impacting the global chemical industry. Chemical manufacturers are increasingly working towards reducing energy intensity of their operations, minimising effluent discharge & pollution, increasing the share of recyclable products in their portfolio and diversifying their raw material base to include bio-feedstock. The International Council of Chemical Associations (ICCA) is constantly working on twin goals of its climate strategy: reducing greenhouse gas (GHG) emissions in the industry’s own operations, and ensuring that both current and new products being developed by the chemical industry help reduce GHG emissions throughout society. Ensuring availability of clean water, food and healthcare facilities are other concerns for the future. Fuelled by an increasing focus on improving the image of the chemical industry (blamed primarily for posing safety threat to environment and workplace), these trends are shaping the priorities for R&D in the field of chemistry. In order to emphasise the importance of the chemical industry in meeting the key challenges for the future, the United Nations Organisation has proclaimed 2011 as the ‘International Year of Chemistry’.


INDUSTRY OUTLOOK

Domestic scenario With the Indian chemical industry picking up pace, it is scaling new heights and attracting global players to set up base in the country. Chemical sales are currently estimated at $ 83 billion. Base chemicals segment constitutes about 53 per cent of the total chemical industry sales, while specialty & knowledge chemicals, comprising specialty chemicals, pharmaceuticals, agrochemicals and biotechnology, account for 47 per cent. Pharmaceutical is the second-largest segment with around $ 20 billion worth sales. Specialty chemicals segment is one of the fastest growing segments, and currently comprises 18 per cent of the chemical industry with around $ 15 billion worth sales. Recent years have seen a marked shift in technology trends due to increased focus on bio-feedstock, with companies such as India Glycols setting up PET bottle manufacturing capacity of 10 million bottles per year based on bioMEG (monoethylene glycol). The year 2010 also witnessed significant activity in next generation biofuels (second and third generation) research, both globally and in India. In FY10, the total chemical exports from India was estimated at around $ 19 billion. Over the past five years (2005-2010), Indian chemical exports have grown by 15 per cent per annum (pa). Pharmaceuticals and agrochemicals have been the fastest growing segments in terms of exports, both growing at approximately 20 per cent pa. In 2010, organic chemicals accounted for about 40 per cent of Indian chemical exports with $ 7.5 billion exports. Over the past five years, organic chemicals exports have steadily grown at 16 per cent pa. India has become a manufacturing hub for organic pigments, with exports accounting for as much as thrice the domestic demand. Pharmaceuticals exports accounted for $ 5 billion. Indian pharmaceuticals exports are expected to continue the high growth trend, going forward. Bulk drug exports are expected to grow the fastest

Regional share in global chemicals production

Production growth 1999-2009 (% CAGR) World average 10.8%

2004-2009 3.6%

1999-2004 4.4%

8.6%

Other regions Rest of Europe Latin America

4%

Asia

31%

NAFTA

28%

2% 3%

2% 3%

5%

45%

5.5% 21%

1.7%

1.7%

1.4% -1.5%

Asia Pacific

Latin America

EU27

-0.8% NAFTA

EU27

32%

1999

24%

2009

Source: TSMG

Figure 1: Global chemical industry

at 35 per cent, followed by formulation exports at 25 per cent. Man-made fibres and agrochemicals are the other major chemical sub-segments accounting for the bulk of exports from India.

small players in terms of market capitalisation, is attractive for several Europe- and the US-based companies for acquisitions.

An integrated marketplace Effective strategies In order to gain a competitive edge chemical manufacturers are implementing best practices and strategies. Some of them are as follows: Get closer to customers: As several customers expect consistent product quality in geographies where they operate, chemical manufacturers have started to take steps to get closer to customers. There are also increasing instances of companies partnering with researchers, engineers and other professionals from research institutes & end-use industries, to jointly develop specialised products. Cross-border alliances/M&A to secure feedstock and access to markets: Leading American and European petrochemical manufacturers have formed alliances with resource-rich companies in the Middle East to ensure adequate supply of petrochemicals feedstock. Similarly, driven by large domestic demand, Indian fertiliser companies are acquiring stakes in companies holding assets for mining of rock phosphate in Africa and the Middle East. Increasing demand from fastgrowing Asian economies make them an attractive market for Western multinationals. The Asian chemicals market, with a large number of relatively

Several foreign companies have realised the inherent strength of the Indian chemical industry and have been growing their presence through both organic & inorganic routes. Setting up base in India, increasing marketshare, wide product portfolio and increasing presence across the value chain are some of the main drivers for domestic acquisitions by global companies. The US-based Abbott Laboratories acquired the pharmaceutical solution business of Piramal Healthcare for $ 3.7 billion in 2010 to gain a prominent position in the domestic market. There have been several other M&A activities, typically with average deal size in the range of $ 10-100 million. Apart from this inorganic route, MNCs that already have an established base in the country and understand local needs have plans to expand organically. LANXESS is planning to set up a 20,000 tonne pa compounding facility in Jhagadia, with an estimated investment of $ 15 million. This facility would start producing Durethan (polyamide) and Pocan (polybutylene terephthalate) by early 2012. Apart from LANXESS, Bayer, Dupont and many other large MNCs are looking at strengthening their presence further in the fast-growing Indian market. MNCs are looking to understand the consumer needs well

May 2011 | Chemical World

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INDUSTRY OUTLOOK

1% 6%

5%

7% 7%

40%

7% 27%

Organic chemicals Pharmaceuticals Man-made staple fibres Pigments, inks, paints and dyes Polymer monomer of plastics Agrochemicals/pesticides Inorganic chemicals Fertilisers Total: ~ $ 19 billion Source: TSMG

Figure 2: Exports of key chemical sub-segments, FY10 (% of total)

and utilise their best manufacturing processes/technologies to fulfil the unique needs of Indian consumers. In several cases, MNCs have made changes to their global offerings in order to suit Indian needs better. In recent years, there has also been an increasing trend of overseas acquisitions by several Indian companies to fulfil their global ambitions. Some of the recent activities in this area have been the acquisition of Dystar by Kiri Dyes as well as several global acquisitions by UPL, Tata Chemicals, AVBG, among others.

The evolution of the chemical industry globally provides valuable pointers to understand how countries/regions have ensured growth. For example, the European chemical industry, faced with a structural framework of limited carbon-based feedstock, focussed on specialty chemicals segment, which has a much lower dependence on raw materials than base chemicals. Effective leveraging of technology and access to markets enabled the growth of specialty chemicals segment, which currently accounts for about 40 per cent of the total chemical sales (excluding pharmaceuticals) in Europe. Simultaneously, European companies have set up subsidiaries in oil-producing countries to minimise feedstock risk. Likewise, the Japanese chemical industry grew significantly based on government initiatives such as low interest rates, policies to encourage imports of raw material & technology rather than finished products, and investments to set up large petrochemical complexes. This has been complemented by a strong R&D focus, in particular from the late 80s/early 90s.

Bright prospects ahead Growth propellers The Indian economy is expected to grow at 8-9 per cent pa during the period 2010-2020. Rapid rise of the mid-income households & rising per capita income would lead to a change in the income pyramid. The mass affluent sections of the society are expected to grow the fastest, thus increasing

Growth tips The Indian chemical industry must target to achieve the following goals, if it intends to achieve overall growth of 15-18 per cent pa: R  Serve domestic market through domestic production, thus reducing India’s

dependence on imports, mainly in organic chemicals & fertilisers R Become a coveted employer, thus attracting talent that would enable

chemical industry to achieve and sustain high growth R Establish targeted innovation platform, thus innovating products/services

that could cater to the unique needs of Indian consumers R Create a positive, consumer & environment-friendly image, thus following a

path of sustainable growth

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Chemical World | May 2011

the overall purchasing power of the consumers. By 2015, over 60 million households are expected to have an annual income over $ 6,700. Most of the key end-use industries are expected to witness high growth during the next five years. Specialty textiles segment is expected to grow over 20 per cent pa, with focus on technical and high performance textiles. Dirtrepellent, wrinkle-free, flame-retardant and water-repellent textiles hold huge potential in the future. The automotive industry is expected to witness a growth of 16 per cent pa. Use of lighter engineering plastics, fuel additives, high performance coolants, brake fluids, etc, are expected to be the focus areas of the auto industry. Construction sector is expected to grow at 14-15 per cent pa mainly on the back of increased government spending on infrastructure. This will in turn lead to increased demand for structural adhesives, cement admixtures and surface coatings. Glass and paints industries are also expected to witness high growth, in the range of 12-14 per cent pa.

India’s chemical industry could leverage the benefits of a fast-growing domestic market with critical size, lowcost skilled workforce, strong R&D and world-class engineering capabilities to become a prominent player in the global industry. India has established itself as a centre of global active pharmaceutical ingredients (APIs) production, and demonstrated how these strengths can be leveraged for business advantage. Furthermore, several chemical majors have set up global R&D centres in India to tap the emerging growth potential. Similarly, strengths in product/process engineering – as demonstrated by the success of auto-components, refining and pharmaceutical industries – could be further leveraged by the chemical industry. However, the industry also faces some key challenges – lack of


INDUSTRY OUTLOOK

adequate infrastructure (high cost of power, poor storage and transportation network), disadvantaged feedstock position (shortage of chemical grade naphtha, and therefore basic building blocks of ethylene, propylene, xylene, benzene and other basic raw materials such as ammonia and intermediates like acrylics, phosphoric acid, etc) and access to latest technology. Two distinct scenarios for the future of the Indian chemical industry emerge, based on how effectively strengths are leveraged and challenges managed. In the base case scenario, with an overall GDP growth rate of 8-9 per cent pa and current initiatives of industry & government, the Indian chemical industry could grow at 10-11 per cent pa to touch revenues of $ 220-240 billion by 2020. In an optimistic scenario of high end-use demand based on increasing per capita consumption, improved export competitiveness and resultant growth impact for each sub-sector, it could grow at an overall rate of 15-18 per cent pa to reach revenues of $ 330-430 billion by 2020. This would require the industry to not only effectively meet its domestic demand (current chemical trade deficit estimated at $ 8 billion), but also exploit the huge export market potential. Even with such an apparently optimistic growth target, the Indian chemical industry would only account for 6-8 per cent of the global industry, clearly indicating the huge untapped potential. To realise the growth envisaged in the optimistic scenario, the industry would require significant investments in capacity creation, higher R&D spend and a larger pool of skilled human resources. This could translate into additional capital expenditure of $ 150-200 billion. The R&D spend would need to go up significantly from current levels of less than 0.5 per cent of sales ($ 0.3 billion) to reach closer to benchmarks of 4 per cent of sales ($ 8 billion) as set by the Japanese chemical industry. Challenges pertaining to the feedstock need to be addressed either through strategic alliances or increasing domestic production. Similarly, infrastructural and regulatory issues have to be resolved to promote the growth of the domestic manufacturing industry. On the human resources front, adequate educational infrastructure would be required to impart vocational training to develop additional 5.5-6 million skilled workers by 2020. India must base the future growth of its chemical industry on successfully utilising its inherent strengths while effectively addressing the key challenges. Pratik Kadakia is the Practice Head – Chemical & Energy at Tata Strategic Management Group (TSMG). He has over 16 years of professional experience, of which a significant part has been in the chemical industry. Email: pratik.kadakia@tsmg.com

May 2011 | Chemical World

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TREND ANALYSIS

th ANNIVERSARY

M&A activities

Creating the right chemistry Global chemical industry that had been reeling under the financial pressures during the slowdown is now wheeling and dealing again, as evident from the rebounding merger and acquisition (M&A) activities. Global and Indian chemical M&A activities shot up in 2010 from the levels witnessed earlier, and all indications point to a strong 2011.

Aashish Kasad

T

he Indian chemical industry has experienced sustained growth on the back of steady augmentation in the end-user industries such as automotive and industrial & consumer products, as is evident from the fact that India’s GDP has grown at 8.6 per cent in 2010. According to an industry study, the chemical sector is poised to grow at a CAGR of 9 per cent from $ 83 billion in 2010 to $ 200 billion in 2020, in light of rising per capita income, strong end-use industry growth and evolving customer needs, thus adding to its investment potential. In comparison, the global chemical industry, pegged at $ 3.4 trillion, witnessed a slow recovery in 2010, after a sharp decline in the last couple of years, due to restocking and revival of underlying demand. Given that the rate of recovery in demand has been slow, several chemical companies have had to resort to plant shutdowns and right sizing to cut costs over the past few years. This resulted in substantial improvements in their bottom lines and healthier balance sheets along with large cash flows, in several cases, which supported inorganic growth opportunities, especially in

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Chemical World | May 2011

emerging markets, once the global economy started showing signs of revival.

M&A scenario Given this, the year 2010 saw M&A activities rebound both in India and globally, especially in the second half of the year, with 80 deals visà-vis 28 in the first half. This can be attributed to improved credit availability, global economic stabilisation and increased buyer confidence. Apart from the accumulation of assets & liabilities and enhancing market capitalisation, some of the key drivers that led to the boom in M&A activity in this sector are mentioned in Table 1. While the deals in the initial quarters were smaller in size and focussed on core business, the deal size increased in the second half of the year. Moreover, there was an increase in the level of private equity deals – eg Bain Capital/ Himadri Chemical and Industries Ltd and Bain Capital/Styron Corp. Sector-wise, specialty chemicals witnessed the highest M&A activity with more than half the number of deals, although the average deal size was relatively small. The increased activity in this segment can be attributed to chemical companies wanting to strengthen their specialty chemical portfolio and geographic presence.


TREND ANALYSIS

From a geographical point of view, the latter half of the year when most of the action happened, saw almost an equal number of acquisitions in North America (23), Europe (25) and

Asia (26). While the acquisitions in Europe were mainly consolidations within local companies, those in Asia and North America were principally cross-border acquisitions. The last

Table 1: Factors driving the M&A activities

Key drivers Acquisition of cuttingedge technologies Feedstock security Obtaining access into sectors/markets with established players Strengthening market position Increase in synergies

R R

Illustrative deal RIL/Carrizo Oil & Gas Piramal/BioSyntech, Canada

R R

Shri Renuka Sugars/Equipav SA Jin Hua Group Chlor Alkali/Huludao Huatian Industrial

R

Royal DSM/Mitsubishi Chemical Corp (Novamid® polyamide business) Honam Petrochemical Corp/Titan Chemicals Corp Bhd Rhodia SA/Feixiang Chemicals Zhangjiagang Co Ltd BASF/Cognis Holding Luxembourg AkzoNobel NV/Lindgens Metal Decorative Coatings & Inks AB CF Industries Inc/Terra Industries Hexpol AB/Excel Polymers LLC JSC Silvinit/JSC Uralkali

R R R R R R R

Table 2: Some major investments involving Indian companies

Acquirer Taiyo Nippon Sanso Corp Bain Capital India Investments

Target K-Air Speciality Gases Pvt Ltd Himadri Chemicals & Industries Ltd

Dorf Ketal Chemicals

DuPont Chemicals’ Specialty Catalyst Business

United Phosphorus Ltd (UPL)

DuPont’s Mancozeb Fungicide Business Laffans Petrochemicals Chemical Business Polygrip Rubber Production Pvt Ltd

Huntsman

Atul Ltd

Rallis India Ltd

Metahelix Life Sciences Pvt Ltd

Deal value Rationale ($ mn) 50 The JV will mark Taiyo’s entry into the Indian industrial and specialty gases market 124 Himadri is expected to utilise the funds to augment capacity and undertake forward integration into value-added downstream products NA It will lead to substantial expansion to Dorf Ketal’s product portfolio and strengthening of Dorf’s position in the specialty chemical value chain NA

NA

2.2

22

It will strengthen UPL’s portfolio of fungicides, with a focus on highvalue crops and markets such as South and Central America It will strengthen Huntsman’s position in the Asian market and enable Laffans focus on core business It will provide access to the rubber and polyurethane-based adhesives market to Atul, while complementing Atul’s LAPOX range of adhesives It will enable provision of entire suite of agricultural input to farmers

quarter saw more cross-border deals with players entering into Asia, which reiterates the increasing focus on emerging markets. India also had a fair share of deals in 2010, albeit of a much smaller scale than the global deals. Some of the marquee Indian deals in 2010 are tabulated in Table 2.

Global outlook for M&A The global economy is showing signs of recovery. Moreover, the emerging markets are reflecting a positive outlook for the chemical sector on the back of strong GDP growth estimations. Hence, the outlook for M&A activity in 2011 is positive and could result in companies having cash pools; looking at inorganic growth to focus on core businesses; acquiring new technologies; and expanding/strengthening existing presence in markets. The chemical sector has already witnessed some deals being announced such as the Belgian soda ash maker, Solvay, proposing to buy Rhodia, France, for Euro 3.4 billion ($ 4.8 billion) in cash, at a 7.3 times multiple, to add specialty chemicals, spanning ingredients for moisturisers and car-part polymers. Warren Buffett’s Berkshire Hathaway has also announced the acquisition of additive maker Lubrizol for about $ 9 billion. There are several chemical companies with lower market valuations, but strong business models, which could make interesting bolt-on acquisitions. Hence, the global chemical sector would continue to see a spate of M&A activity in 2011. Aashish Kasad, is a Partner at Ernst & Young. She has 15 years of experience in providing consultations on international tax, transfer pricing, Indian income tax and regulatory matters to companies in various industries. For details, contact Padma Chourey on email: padma.chourey@in.ey.com

May 2011 | Chemical World

25


MARKET REVIEW Base Chemicals

th ANNIVERSARY

“In the short term, demand will exceed supply� Rajiv Rao is Sales Director - Base & Performance Chemicals, South Asia at Dow Chemical International Pvt Ltd (Dow India). He is responsible for overseeing commercial sales activities for basic and performance chemical portfolios in India. He discusses the demand & supply scenario for this category of chemicals with Rakesh Rao.

Demand for base & performance chemicals in 2010 The year 2010 was extremely good for chemicals business, whether base or performance. Demand was strong during this period as several application segments such as pharmaceuticals, construction and coatings performed well.

Performance of Dow in 2010

26

exceed supply. The market would, therefore, face shortage in supply in the immediate future. Further, due to the recent disaster in Japan, supplies of some chemicals from Far East have been affected. Impact of this change on the global chemical industry is yet to be ascertained.

Sustainable development for emerging economies

With the resurgence of the economy, Dow India made positive strides towards business growth both in value and volumes. For base & performance chemicals, major applications segments are pharmaceuticals, construction, textile and agrochemicals. All these segments showed robust growth. Boom in infrastructure development is resulting in an increase in demand for construction chemicals. Similarly, as more drugs are going offpatent, there is a significant business opportunity for pharmaceutical manufacturers in India, especially in the generics market. With the improvement of purchasing power, the consumption of paints (in both new as well as old construction) is also rising, driving the demand for chemicals used in coatings industry.

Indian industries are evolving in sustainable development. The Government of India is planning to produce 20 Giga Watts of solar energy by 2022. Dow India, through its products and technologies supports the growth of such evolving markets. Though India has a long way to go, the right steps are definitely being taken.

Demand-supply paradigm

Growth prospects

After 2008, there was a rationalisation of production capacities across the world. With the recent recovery of the economy, demand for chemicals will far

The outlook is promising and the industry is expected to grow faster than GDP. In the short term, it is believed that demand will exceed supply.

Chemical World | May 2011

Impact of regulations on the industry The Indian chemical industry does see cases where companies are still using chemicals, which are phased-out in matured markets. Going forward, India needs stricter regulatory norms for the industry so that new generation chemicals can come to play, which are safer and support the advancement of human life.


Industrial Gases MARKET REVIEW

“Industrial gases sector in India witnessed a growth of about 20 per cent in 2010” Asit Gangopadhyay is Managing Director of Praxair India Pvt Ltd. Since joining Praxair India in 1995, he has spearheaded the company’s evolution into the country’s leading industrial gases supplier. He shares his views with Prasenjit Chakraborty on different aspects of the industrial gases sector.

Performance of the industrial gases sector in India The global economic slowdown did have an impact on the Indian economy, with industrial production falling down to 4-5 per cent, but the industrial activity bounced back in 2010. This can be attributed to the industry growth in various sectors such as steel, energy, automobiles, manufacturing and pharmaceuticals. The industrial gases sector in India had witnessed growth of about 20 per cent in 2010. Apart from an increase in the requirement of industrial gases owing to industrial growth, the shift towards process-efficient gas-related application technologies intensified the usage of industrial gases in India.

Praxair in 2010-2011 Praxair India registered several significant gains in 2010, making it a good year for the company. It won a major contract for supply of gases to the Bhilai facility of Steel Authority of India Ltd (SAIL), India’s flagship steel manufacturer and a leading global player. Praxair India will build, own and operate two state-of-the-art cryogenic air separation units, each with a capacity of 1,250 metric tonne per day. The air separation plant will include liquefaction equipment, allowing Praxair to meet the growing demand for oxygen, nitrogen and argon in the central India market.

efficiency and improving their environmental footprint, without significantly altering their base operations, was never seen before. An organisation focussed on sustainable development needs to make continuous efforts to reduce consumption of renewable resources and develop productive methods of reusing and recycling the used/waste resources. At Praxair, we use our application expertise to pass on the benefits to our customers from reduced emissions, lower energy consumption and increased productivity.

Emerging opportunities Almost 50 per cent of the total industrial gas market today is still captive. However, customers have now started focussing on their core strength and are outsourcing the gas requirement (noncore activity for them) from industrial gas manufacturers. Thus, there is a clear shift from Sale of Equipment (SOE) to Sale of Gas (SOG) in the Indian industry. The energy segment is witnessing a major transformation in India, with focus on development of renewable sources of energy. As per Government’s National Solar Mission, the target for 2022 is generation of 20,000 MW of solar power. This would boost the requirement of industrial gases in this segment.

Outlook for the industry Impact of environmental awareness Environmental awareness and continuously rising oil prices are forcing customers to look for energy-efficient manufacturing processes. The current level of customers’ appetite for a cost-effective means of achieving energy

The industrial gases sector is expected to grow consistently for the next few years. This growth is fuelled by the overall economic growth in India and shift of customers’ focus from SOE to SOG mode, thereby increasing the intensity of industrial gases usage.

May 2011 | Chemical World

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MARKET REVIEW Paints & Coatings

“Paint manufacturers are moving towards more water-based and low-VOC products” Abhijit Roy is the Chief Operating Officer of Berger Paints India Ltd. Prior to Berger, he has worked with some of the leading companies like Asian Paints, L’Oreal, etc. In a tete-a-tete with Rakesh Rao, he paints a bright picture of the paints industry.

Paint industry in 2010 In India, decorative segment accounts for 75-80 per cent of the total paints market, while the balance comes from industrial. In 2010, the performance of the paints industry (both industrial as well as decorative) was good, registering a growth rate of about 22 per cent.

Company performance We are one of the major players in decorative paints, while we have a strong presence in protective and powder coatings in India. Significant portion of our product portfolio are water-based paints. In 2010, Berger Paints was able to grow above the industry average. The reason for this is we have the right mix of products at competitive prices along with the right positioning.

Expansion plans We are already in the process of expanding our existing facility. This expansion should be operational by July-August this year. We are setting up a fully-automated water-based paints unit at Hindupur in Andhra Pradesh. This will be one of the Berger Paints’ biggest units for waterbased paints. The construction will be completed in three phases and the first phase will have the capacity of 1,20,000 metric tonne.

Environment consciousness In future, environment will gain predominance in all the industries. Major paint manufacturers are aware of this and have already taken steps to become environment-friendly. All the leading paints manufacturers now offer consumer paints, which are free of lead and other heavy metals.

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Chemical World | May 2011

Companies are coming out with paints containing low content of Volatile Organic Compounds (VOC). Paint manufacturers are moving towards more water-based and low-VOC products.

Sustainability mantra Sustainable development implies conserving energy & raw materials and carrying out business without affecting the environment. Industry is moving towards this direction. Products are being tailored and factories are being set up to meet the requirements of sustainable development. For example, all our factories are effluent-free and pollution-free. We manufacture products that conserve energy and are long-lasting.

Raw material supply One of the major challenges facing the paint manufacturers is the escalating raw material prices. While manufacturers have been able to pass on this cost to consumers, there is fear that rising costs of paint might have an impact on the volume growth in the marketplace.

Trends & opportunities First, there is an increase in demand for ecofriendly paints. Second, market is becoming fragmented with offerings being made at various price points. In industrial segment, many international companies have entered or expanded their base in India.

Outlook for paints industry Provided that the inflation is tamed, we should have good growth in 2011 & 2012 as GDP is growing at 8-9 per cent and the economy is robust.


Petrochemicals MARKET REVIEW

“Business is definitely shifting to Asia, particularly India� Makarand Dixit is Head - Marketing at OPaL. He is responsible for the company’s marketing operations in international and domestic markets. He has more than 20 years experience in downstream petrochemicals marketing. In a conversation with Prasenjit Chakraborty, he highlights the trends and opportunities in the sector.

Performance in 2010 in India The year 2010 has been excellent for the petrochemicals business globally, particularly in India. The global economy bounced back to 3.3 per cent of the Gross Domestic Product (GDP) growth against -2 per cent in 2009. Until the beginning of 2011 and the Jasmine revolution, the crude oil market was stable in 2010, which gave tremendous confidence to the industry; the industry then reciprocated with excellent growth numbers. The market for major petrochemicals such as Polypropylene (PP) and Polyethylene (PE) in India grew in excess of 15 per cent on a year-on-year basis. With a robust economy, the Indian petrochemicals industry is expected to continue this growth to over 12 per cent annually for the next 5-6 years.

Targeting sustainable development Chemicals and petrochemicals are part of our daily lives. It is difficult to imagine life without these. Economic growth of a country is directly proportional to the demand for petrochemicals. Chemicals and plastics find application in various sectors such as infrastructure, medical, automobile, agriculture, etc, and thus form the pillars of the economy. Today, the Indian economy is taking giant strides and showing promise for continuous growth in the coming decades.

Approach for sustainable growth We need to keep pace with the changing demands from the customers. Besides,

it is imperative to continuously add value to our products and services. Based on the demand from customers, newer grades/ products must be developed, along with the machinery to serve the requirements. India is a diverse country and, with the rapid pace of economic growth, consumers are bound to ask for more. The challenge, thus, is to give quality products and services at affordable prices.

New trends and opportunities Business is definitely shifting to Asia, particularly India. No new investment is envisaged in Europe because of lack of lowcost feedstock and economic slowdown. This opens up huge opportunity for players in India and other parts of Asia. Indian exports of finished products have grown significantly and are expected to surge even further. What we lack is the investment in the R&D segment. We produce over 7 million tonne of polymers, yet we do not have our own technology. Moreover, Indian companies should explore various possibilities and opportunities in Africa, because of the availability of cheaper gas as well as crude oil.

Looking towards the future Demand for petrochemicals in India is expected to continue growing to over 12 per cent for the next 5-6 years. Further, Indian polymer demand is expected to grow more than 15 per cent by the next year. Hence, in order to fulfill the growing demand for plastics, India needs to invest at least $ 40 billion in this sector in the next five years.

May 2011 | Chemical World

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MARKET REVIEW Pharma & APIs

“Rapid development in biopharmaceuticals will be witnessed in coming years” Dr M G Palekar is the Head of Pharmaceuticals & Intermediates Division at Atul Ltd, and Managing Director of Atul Bioscience Ltd. He has varied experience in industrial R&D, process development, industrial & bulk chemicals, etc. In conversation with Rakesh Rao, Dr Palekar offers growth prescription for the pharma industry.

Status of the pharma industry In the last couple of years, pharma MNCs have formed alliances with Indian companies for sourcing generic APIs & formulations; and few Indian pharma companies were acquired by MNCs. These developments have helped growth in pharma manufacturing activity in India during 2010. Global pharma industry is expected to grow at 3-4 per cent and Indian pharma is estimated to grow at 12-14 per cent in coming years. At Atul, our pharma business includes basic & advanced phosgenated and non-phosgenated intermediates, and couple of APIs, which we market across the globe. Our pharma business has grown by 30 per cent during 2010-11.

with use of new technologies, viz. cavitation, chromatographic separation, biocatalysis, etc, will benefit the industry to improve productivity & reduce pollution. In the sustainable development area, pharma division in Atul has initiated water management strategy to reduce water consumption with target of zero discharge by 2014-15. We have implemented projects for recovery of byproducts/ raw materials/solvents. With these initiatives, we have reduced water consumption by 20 per cent in 2010-11 compared to 2009-10, in spite of 35 per cent increased production. For the last three years, we have worked on process intensification to improve productivity of our existing plants by 10-35 per cent.

Impact of environmental awareness Pharmaceutical industry is known to have a high ‘E-factor’ (waste generated/kg of finished product). Due to growing environmental awareness & global warming, regulations on effluent discharge & disposal of waste have been tightened by government authorities in many countries. Companies across the world and specifically in India & China have been forced to close down their plants due to environmental pollution.

Sustainable development Chemical industry is one of the most polluting industries. Increased global demand for products, limited resources (oil/gas/coal/water), global warming, and increased environmental awareness have pushed the chemical industry to adopt sustainable development approach – combination of green chemistry (pure chemistry) and process intensification (engineering/downstream processing). This along

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Trends & opportunities There will be an increase in outsourcing activities for R&D, manufacturing (intermediates/APIs & formulations) & clinical research. Indian pharma companies will increase their sales of branded generics formulation in regulated markets viz. Europe/the US/Japan. Stricter regulatory compliance could have an impact on manufacturers in India and China. While consolidation of businesses will take place through mergers & acquisitions, rapid development in biopharmaceuticals/biotechnology will be witnessed in the coming years. Some of trends on the technology front include ultrasonication for crystallisation & specific forms of APIs, chromatographic separations to purify intermediates & APIs, micro/ novel reactors for production, use of immobilised enzymes for pharma intermediates production and nanotechnology, among others.


Pharma & APIs MARKET REVIEW

“Going forward, a serious focus on breakthrough research will be critical” S Ramesh is the President – Finance & Planning of Lupin Ltd. He facilitates the organisation in strengthening its processes resulting in sustainable growth and improved cost management. He offers an insight into the emerging opportunities in the pharma industry during his interaction with Rakesh Rao.

Pharmaceuticals market According to IMS, in 2009, the total audited pharmaceutical market in India was worth $ 10.3 billion and is expected to grow strongly at an estimated CAGR (2010-2014) of 15 per cent, riding on the back of a robust overall economic growth. Other factors such as changing population demographics along with the increasing access to modern medicine and improving affordability are expected to drive this market. Additionally according to McKinsey, India is expected to be among the top 10 global pharmaceutical markets by 2015 at $ 20 billion.

Generics demand While the economic recession had taken a toll on the global financial environment and most industries across the world were reeling under its aftermath, healthcare, being a primary and non-discretionary expense had been relatively insulated from this phenomenon. In fact, the post-recession era had seen a greater pressure in developed and underdeveloped markets for use of generic drugs, which has only added to India’s export capabilities. Today, we enjoy the distinction of being the fastest growing among the top 10 companies in the US and Japan – the top two markets for pharmaceuticals in the world. We will aim at sustaining these levels and maintaining the strictest standards of quality and processes as a global generics powerhouse.

Growth opportunities Macroeconomic conditions such as fast drying product pipelines, rapid price erosion and debilitating competition have prompted pharma manufacturers to look towards emerging markets

and generics stables to herald their next wave of growth. Going forward, as the emerging markets of Brazil, Latin America, Eastern Europe and Russia open up to generics, there will be several opportunities for companies such as ours. That said, in the wake of several hot selling blockbuster drugs going off patent in the US over 2011-12, generics companies will see increased opportunities in the years to come. Indian drug companies are exploring new markets, besides consolidating with the advanced ones, such as the US and Japan. They are also becoming hotspots for drug research and drug delivery systems. Furthermore, Japan, which is today, the second-largest market for pharmaceuticals, is also in a mode of transition, with the government pushing for generic penetration of 30 per cent from the existing levels of 5-6 per cent by 2012. This will call for a sea change in consumption of drugs, and will make it simpler for Indian companies to export drugs to Japan, thereby reducing healthcare expenditures & increasing the scope for generics tremendously.

Emerging trends In terms of new technology and regulations, we believe that going forward, a serious focus on breakthrough research will be critical. The industry must focus on becoming a powerhouse of innovation to address new needs of the masses – affordable and specific treatments that meet global regulatory standards. The regulatory environment will only get more stringent, with a greater emphasis on quality standards in manufacturing and research – the companies that are able to maintain and comply with the new regime will emerge winners.

May 2011 | Chemical World

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MARKET REVIEW Plastics

“This year seems quite promising for the engineering plastics industry” Sanjay Jain is the Business Director for DSM Engineering Plastics India. He has worked for the last 15 years in the plastics business across various functional disciplines in Asia-Pacific. In this interview with Rakesh Rao, he reflects on the performance of the engineering plastics market.

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Engineering plastics market

Interesting trends to follow

The Asian growth engine, ie China and India, continued growing even during 2010. The domestic growth in these two Asian economies after having a slow beginning, surged ahead later, and has showed no signs of slowing down ever since. This resulted in the excellent performance of the engineering plastics industry during 2010. Currently, we see strong growth recovery in Asia. Another major trend observed is the further restructuring of the industry. In this respect, it is worthwhile mentioning that DSM has acquired Mitsubishi’s Novamid® PA business in 2010. This further enhanced our position in the Asian markets and offered customers a broader portfolio of solutions, with local support in all the geographies that we operate in.

The industry has witnessed the trend of increased focus on the environmental aspects of engineering plastics. The demand to replace metals with high performance engineering plastics, like DSM’s PA4T (Stanyl ForTii®), is growing. Manufacturers are offering innovative halogen-free engineering plastics for environmental compliance. DSM’s Stanyl®, Arnitel®, Arnite® and Akulon® are available commercially with halogen-free offerings. These products are already becoming select choices for leading environmentally-conscious companies. There is an increase in demand for recycled materials and bio-based polymer materials. In 2010, DSM launched EcoPaXX®, a new bio-based high performance engineering plastic.

Sustainable development

Demand drivers

In recent years, people have become more environment-conscious, which definitely cast a big challenge to the plastics industry. At DSM, sustainability is one of the core value and a key driver in our strategy across all over businesses. We have always been a frontrunner in minimising environmental impact in whatever activities we do and moving away from use of substances that can lead to health & environmental issues in our products. We have introduced various products and developed application-based value propositions in line with this strategy. DSM would continue to introduce more innovative and green materials to meet people’s growing demand to minimise the environmental impact, and contribute towards a greener world.

The main growth sectors will continue to be automotive, power distribution, lighting, electronics and furniture. Overall, these segments grow at levels close to twice that of GDP growth, trends which the engineering plastics industry will follow too. We have a leading position in all these segments and will continue to consolidate our position in these segments.

Chemical World | May 2011

Growth prediction In today’s economic scenario, it is rather difficult to predict too much into the future. This year seems to be quite promising for the engineering plastics industry, especially with most of the global outlook looking positive.


Specialty Chemicals MARKET REVIEW

“Growth in the Indian specialty chemicals industry is driven by robust domestic demand” Dr Kishore M Shah is President of Indian Specialty Chemical Manufacturers’ Association. He is a technocrat, author, consultant and an industrialist. He discusses with Prasenjit Chakraborty the performance and potential of the specialty chemicals sector.

Advantage green products Establishing a leadership position in sustainable growth through an integrated approach across the value chain could help create positive differentiation. This would not only help companies create value through green product/process innovation but also generate end-consumer pull through ingredient branding in ‘green products’.

Performance in 2010 The specialty chemicals market in India (including knowledge chemicals as active ingredients in agrochemicals and pharmaceuticals) has the potential to grow at a rate of 15 per cent per annum to reach $ 40 billion by FY 2014. This growth potential is significantly higher than the overall chemical industry’s projected growth rate for the world, which is approximately 3 per cent per annum. Growth in the Indian specialty chemicals industry is driven largely by a robust domestic demand with exports-based growth in select segments.

undertake intensive research for developing value-added products.

Important issues to address The European Union has set up a regulation of Registration, Evaluation and Authorisation of Chemical (REACH) in order to meet two objectives, mainly to make the chemical industry more competitive as well as protect health and environment. With an aim to make chemical manufacturing and usage environment friendly, REACH requires that a large number of chemical substances – which may be from industries or households – undergo a health and safety screening and registration process over an 11-year period running till 2019. Therefore, most Indian chemicals exporters who export over 1,000 tonne of chemicals or drugs will have to immediately comply with the regulation. They face a major challenge when it comes compliance to REACH. Moreover, volatility and availability of raw materials are some of the other major concerns.

Important milestones A continuous demand for high valueadded products will open up new fields of applications for the Indian specialty chemical manufacturers and pave the way for its progress through product innovation. Besides, there is a growing trend towards merger and acquisition in the Indian specialty chemicals industry, which reflects the growing importance of the country in the global arena. Manufacturers could leverage the lower R&D costs in India as compared to those in Europe and the US in order to

Future prospects Today, specialty chemicals are finding numerous applications in the construction, automotive, electronic and water treatment segments, which show tremendous growth potential in the future. India’s specialty chemicals industry is expected to grow at a Compounded Annual Growth Rate (CAGR) of 15 per cent, which is almost double the growth of the global specialty chemicals industry. Also, exports of specialty chemicals from India are poised to grow to $ 13 billion in 2013, representing a CAGR of 22 per cent.

May 2011 | Chemical World

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th ANNIVERSARY

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SECTOR WATCH

STRATEGISTS SPEAK Ralf Blauth Chief Human Resources Officer, and Member of the Executive Board, Evonik Industries AG

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R Mukundan Managing Director, Tata Chemicals Ltd

ENERGY MANAGEMENT Efficiency Measures..................................................................................... 40 Industry Voice ............................................................................................. 42

PROCESS ENGINEERING Instrumentation .......................................................................................... 46 Automation ................................................................................................ 48 Industry Voice ............................................................................................. 50

R&D Research Strategies ..................................................................................... 54 Paint Innovations ........................................................................................ 56 Industry Voice ............................................................................................. 58

CLEAN ENVIRONMENT Emission Norms .......................................................................................... 62 Water Management.................................................................................... 64 Industry Voice ............................................................................................. 66

ENGINEERING, PROCUREMENT AND CONSTRUCTION New Project ................................................................................................ 70 Industry Voice ............................................................................................. 72

SUPPLY CHAIN MANAGEMENT Transportation............................................................................................. 78 Sourcing Strategies ..................................................................................... 80 Industry Voice ............................................................................................. 82

SAFETY & MAINTENANCE Plant Safety................................................................................................. 84 Occupational Health & Safety ..................................................................... 86

May 2011 | Chemical World

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STRATEGISTS SPEAK

th ANNIVERSARY

“One of the biggest challenges faced is regarding efficient use of resources” …says Ralf Blauth, Chief Human Resources Officer and Member of the Executive Board, Evonik Industries AG. Being associated with the chemical industry since a long time, Blauth takes due cognisance of the importance of sustainability in this sector. In conversation with Mahua Roy, he explains how adopting sustainable measures can help solve some of the challenges facing the chemical industry.

Sustainability focus in today’s world Sustainable development and corporate responsibility are vital for the future viability of companies across the globe. At the end of the day, the market and stakeholders decide which products are to be purchased in the long term. However, we notice that even in the B2B sector, business customers are emphasising on sustainability. At Evonik, this aspect is so important that the company recently organised ‘Sustainability Day’ at its head office in Essen (Germany). More than one hundred participants, including high-ranking representatives in the field of politics, the labour union, industry associations and customers discussed sustainability and its importance for our business with members of

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the Executive Board and other senior managers from our company.

Areas of concern in the chemical industry One of the biggest challenges faced by the chemical industry is regarding efficient use of resources. This factor has to be taken into utmost consideration, if we are to ensure that people can live with the limited resources offered by our planet. We are, therefore, addressing this issue in our production facilities. Our chemical production processes are systematically being optimised. We constantly review our processes with a view to cutting costs, safeguarding their competitiveness and reducing their environmental impact. In


STRATEGISTS SPEAK

the area of power generation and consumption, we have established a structured process known as Efficient Energy Management (EEM). So far, more than 60 EEM diagnoses have been undertaken worldwide and considerable savings potential has been identified.

Futuristic technologies for promoting Green Chemistry We are involved in the intensive search for new, energy-efficient concepts that include research for reducing CO2 emissions through the adoption of organic solvent nanofiltration method as an alternative to energy-intensive thermal separation processes. Another research project is dedicated to carbon separation. Here, the aim is to develop absorbents for more efficient CO2 separation. To help turn the idea of low-noise, low-emissions automobiles into reality, Evonik provides a key element for electric drives: highly

efficient and innovative lithium-ion battery technology. That facilitates the use of regenerative energy sources for resource-efficient mobility.

Greener ways of production We invest in future-oriented projects and thus make a contribution that benefits everyone: people, the environment and our balance sheet. One example is the planned construction of a new production complex for the amino acid DLmethionine in Singapore. Poultry digests feeds containing this protein additive far more effectively, so Evonik helps meet rising demand for meat and eggs. At the same time, the use of amino acids reduces pressure on the environment and cuts CO2 emissions. Similarly, Evonik and the Indian chemical company, Gujurat Alkalies and Chemicals Ltd (GACL), have initiated a joint project. Evonik is planning to build a new production facility for

hydrogen peroxide while GACL plans to build a facility to produce propylene oxide. The goal is to produce propylene oxide using the environment-friendly hydrogen peroxide to propylene oxide (HPPO) process.

Evonik’s mantra for sustainable development We have aligned a high proportion of our business activities to the three major social and economic megatrends – resource efficiency, health & nutrition, and globalisation of technologies. In this way, we are playing our part in the sustainable development of society. We are already well-positioned and intend to press ahead with growth along the three global megatrends. Our research groups are stepping up their focus on sustainability issues and new research ideas have to demonstrate that they are sustainable and can meet high standards, at any early stage.

May 2011 | Chemical World

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STRATEGISTS SPEAK

th ANNIVERSARY

“Individuals and organisations must realise that the onus is on them to work towards creating a cleaner and greener future” …says R Mukundan, Managing Director, Tata Chemicals Ltd (TCL). In an interview with Mahua Roy, he talks about the growing emphasis on sustainability and outlines the strategy of TCL towards promotion of Green Chemistry.

Significance of sustainability With growing industrialisation across the world, there is higher exploitation of natural resources and an increase in extraction of materials & fossil fuels, which is causing a huge demand-supply gap. This results in the need to improve efficiencies in operations, resource conservation and implementation of strategies to optimise consumption and minimise the loss of raw materials & other resources. While addressing climate change, meeting the demand for sustainable energy supply is also one of the most urgent environmental issues the world faces. Today, it is more than necessary that all of us as individuals and organisations realise that the onus is on us to work towards creating a cleaner and greener future and that is something we owe to our coming generations because as someone rightly said – ‘We do

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not inherit the earth from our ancestors, we borrow it from our children.’

Major issues in the chemical industry As a premier chemical producer and one of the largest industrial energy users, we have a considerable stake in the solution as well as the ability to have an impact on the conjoint issues of energy supply and climate change. One of the biggest threats to the planet and mankind today is climate change, and hence our corporate strategy has considered climate change as a major environmental challenge. The company has therefore established a Corporate Cell on Climate Change to respond to the challenge and to develop action for a low carbon economy. TCL as a responsible corporate citizen monitors its GHG emissions, and the cell implements various climate change initiatives.


STRATEGISTS SPEAK

Green technologies Some of the ways in which Green Chemistry can be promoted are by using alternative forms of energy; mapping & measuring the carbon footprint and working towards reducing it; ensuring waste management, energy as well as methane reduction, etc. The company has already been issued carbon credits for the registered projects at UNFCCC, mostly related to energy and methane reduction. We are also working on availing carbon credits for biomass fuel for hot air generators, coated urea, biofuels and natural soda ash projects. Water management is also one of the areas where our efforts have yielded substantial results. Our facility at Mithapur has achieved 99 per cent reduction in dependence on groundwater in the last three years by adopting various inhouse water conservation measures as well as management of the rain-fed lake. Our urea-manufacturing facility serves as

a benchmark for nitrogenous fertiliser manufacturers. Periodic water level and quality measurements are part of the Quality Assurance System of Babrala. Fertiliser plants at Babrala and Haldia come under zero discharge units.

Tata Chemicals’ green mantra Our sustainability programmes and actions are driven & guided by six major drivers of sustainability namely climate change (GHG emissions), Green Manufacturing Index (energy & water consumption, solid waste reuse), green cover (afforestation, renewable energy), workforce (safety, health), engagement with community (CS Protocol Index, Product Stewardship) and Green Chemistry investments. TCL believes in protecting and caring for the environment and adopting ecofriendly technologies & processes in all operations across all its locations. Integrating environmental sustainability principles in overall

operations and planning is the philosophy we follow. The company always ensures that all employees and associates understand their responsibilities towards protection of environment & sustainable business with appropriate training and support. Resource conservation through reuse, recycle & reduction of waste and treatment at source has been our guiding philosophy for environment management and it is followed in all our manufacturing processes. Manufacturing of chemicals & fertilisers is an energy-intensive process, and primarily depend on the non-renewable energy sources. Solar energy is used for salt evaporation at Mithapur and domestic water heating at Babrala. Application of alternative materials is undertaken in order to conserve energy, inclusive of maximisation of use of pet coke in boilers and anthracite coal in the soda ash lime kiln at Mithapur facility.

May 2011 | Chemical World

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th ANNIVERSARY

EFFICIENCY MEASURES

Energy management

Now or never With rapid industrialisation and depleting resources, especially water and energy, practising the efficiency mantra is the only alternative. Energy efficiency offers a powerful tool for securing a sustainable future, besides reducing the need for investment in energy infrastructure, cutting fuel costs and increasing competitiveness. The same goes for water conservation, as effective management of water resources will keep the resources intact for the coming generations as well.

Alok Kumar Bhadra

I

t has become a matter of debate whether industrialisation is a boon or bane for st the 21 Century, considering its negative consequences manifesting in the form of pollution, deforestation, extinction of species, environmental degradation, greenhouse gas emissions, climate change, etc. Traditional approaches and methods to reduce or prevent damage to the fragile ecosystem caused by rapid industrial development have often proved to be inadequate, and sometimes, ineffective. This calls for improvement in the current processes

Corporate Sustainability Report Sustainability reporting has now become a common practice in a number of countries like the US, European nations, Japan and Australia. On the other hand, sustainability reporting is so far at a nascent stage in Asia, Latin America, Africa and Russia. Although sustainability reporting has not been made obligatory in India, a small but a sizeable number of both subsidiaries of multinational and local companies are preparing sustainability reports to identify growth and developments internally. However, a majority of these companies are more focussed on community initiatives. Indian companies are now looking at sustainability reporting as essential to corporate social responsibility, which is a healthy sign for a ‘more sustainable tomorrow’.

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and innovative technologies to provide clean & green solutions. There are various factors triggering the need for conservation measures to save the environment. Here are some of them. Precious resources like water cannot be used more than the earth’s ability to replenish them. Energy needs to be conserved as well and put to better use while the quest for alternative sources should continue. It is equally important to reduce carbon footprints and keep emissions within acceptable limits. Hence, sustainable development, of which sustainable energy management is a key component, is the need of the hour and rightfully tops the priority list for every responsible corporate enterprise.

Green technology Green technology is an emerging pattern in sustainable management where the strategy comprises resource conservation and waste minimisation, in concurrently enhancing environmental performance of an enterprise as well as its productivity. It emphasises sustainable improvement in the quality of human life with minimal or zero damage to the environment. It is the pooled application of appropriate productivity & environmental management tools


EFFICIENCY MEASURES

and techniques that reduce the environmental footprint of an organisation’s activities, products & services while enhancing profitability. Water as a precious resource has been under constant pressure of becoming scarce across the globe. Due to the ever-increasing population, environmental distress and economic development, water stress has emerged as a threat. It is extremely vital that people and enterprises understand the importance of water management. A suitable water treatment philosophy and technology can improve the bottom line of companies, and also provide wide-ranging environmental benefits, including cleaner water for use, fresh air to breathe, and reduction in solid waste. To sum it up, energy conservation, waste recycling & management, environmental protection and the use of renewable resources of energy form the basis of sustainable development.

Mission conservation Energy and water are the lifelines for infrastructural development for any economy. Improving energy efficiency & conserving water is the national mission and this can only be achieved by educating & motivating the entire cross-section of society. At present, environmental education incorporates some portion on energy studies mainly dealing with sustainable development. Enhanced initiatives for energy conservation should be undertaken to educate young minds. Concerns over the harmful environmental impact of inefficient uses of energy are growing, both globally and regionally. Such concerns require stronger efforts and better local & international support to promote energy efficiency & conservation while industry captains play a leading role to make it happen. A flourishing path to a global low-carbon economy requires an

exceptional alliance from countries around the world. While developed countries must take the lead in wastewater management, and also on cutting emissions, it will be crucial for emerging economies to move at a rapid pace (adapt and innovate), as it is these countries that will see the largest share of growth and investments in the times to come. Alok Kumar Bhadra is the Managing Director of NLC Nalco India Ltd since January 2011. He joined NLC Nalco in 1989 and has the experience of working for water, energy & paper groups both in sales and marketing functions over the years. He completed his Bachelor’s in Chemical Engineering from Jadavpur University, followed by an MBA from Indian Institute of Management (IIM) – Kolkata. For more details contact Abhishek Bhardwaj on email: abhardwaj@nalco.com

May 2011 | Chemical World

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INDUSTRY VOICE Renewable Energy

th ANNIVERSARY

“Investment in cutting-edge green technologies will offer significant medium-term benefits” Anjan Ray is the Commercial Director – Renewable Energy & Chemicals at UOP – A Honeywell Company. In an interview with Mahua Roy, Ray talks about the new vistas opened up by green technology.

Adopting green measures With increasing energy cost – both fuel and power – going green makes good economic sense, and this is what is being witnessed in the chemical/petrochemical sectors in India. Both energy-efficiency and renewable energy projects are attracting significant investments. So is water conservation and effluent management. There has also been significant progress in the regulatory framework, both in terms of mandates and incentives.

Issues before the chemical industry Speaking specifically about UOP’s area of focus namely biofuels and biomass-to-power, a major issue is pertaining to feedstock availability and reliability. Many early investors in biofuels and biomass projects, working under the assumption that feedstock would be cheap and abundant, have struggled to keep their operations sustainable and viable.

Challenges faced as a solution provider of green technology India’s biofuels policy is technology-specific and encourages the use of first-generation fuels like ethanol and biodiesel, which have limitations insofar as they are typically used as blending components in gasoline (petrol) and diesel, respectively, rather than being 100 per cent dropin fuels as are produced through our EcofiningTM and Green Jet Fuel processes. Therefore, a fair amount of effort has to go into building general awareness on our latest technologies, for which there are no precedents or reference plants yet in India. We do see, though, that the Ministry of New and Renewable Energy is moving forward actively

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and offering support to second-generation biofuels that minimise impact on food security, arable land & water resources, and produce drop-in fuels. Similarly, our biomass-to-fuel oil RTPTM technology can create unique value from biomass such as agricultural waste and sawdust by converting these to a liquid biofuel that can be thought of as an energy delivery intermediate. That is to say, it can be easily stored or transported elsewhere for production of heat or power generation, unlike current technologies like steam turbines or gasification where the use of biomass is coupled with the production of heat and/or power on-site.

Economics and sustainability Sustainability can go hand-in-hand with cost savings. The cost of unsustainable operations will keep on increasing as policymakers and enforcement agencies pay increasingly greater attention to issues related to energy, environment and emissions. I believe that those who invest in cutting-edge green technologies today, especially those that minimise lifecycle carbon footprint and water usage, will reap significant mediumterm benefits.

Green technology adoption I think adoption of green technologies is happening now – albeit slowly, as happened with automation a few decades ago. Once people see the benefits gained by the early risk-takers, they will follow suit just in order to stay competitive. Our regulators and policymakers can help by ensuring effective implementation of existing laws and regulations related to environmental compliance – new laws are not always required.


Energy Conservation INDUSTRY VOICE

“We should concentrate more on the use of green power to decrease carbon footprint” Sanjay Rai is the Managing Director of Kandla Energy and Chemicals Ltd (KECL). His in-depth knowledge and sharp business acumen is instrumental in phenomenal success of KECL. In a tete-à-tete with Prasenjit Chakraborty, Rai discusses energy scenario, emerging trends and opportunities in the sector.

Need for sustainable development Sustainable development is inevitable for growth in the chemical industry. KECL has been constantly striving towards using more efficient processes & technologies in production to ensure sustainability. Our mantra for such development is a mix of technology, awareness and initiatives from all the people concerned.

to sustain development and reduce the impact on climate, the energy sector has to use efficient technology and reduce dependence on fossil fuels. We should concentrate more on the use of green power (solar, wind, biomass, geothermal, tidal, hydro power, etc) to decrease carbon footprint, and thereby, support sustain development.

Emerging trends & opportunities Energy scenario in India The power and energy infrastructure in India is slowly gaining momentum, especially with the Accelerated Power Development & Reforms Programme (APDRP) 2002-2012 acting as a catalyst. Around 22,000 MW power has been added to the grid during the last five years. The planned addition of power during the 11th Five-year Plan (2007-2012) was targeted at 78,000 MW. However, later it was revised to 68,000 MW and recently re-revised to 51,000 MW new power addition by 11th Plan. Though running short of targeted power addition, it is much more than during any previous plan period. However, the government’s slogan ‘Power for All by 2012’ will not be met by the stipulated timeframe. I

Implications of environmental awareness It is true that environmental awareness is gaining momentum globally. Climate change is making big impact on life and economy. The activities and processes of various sectors like manufacturing, energy, transport, agriculture, etc, are primarily responsible for the environmental degradation. Energy sector is one of the major polluters that can be attributed to the heavy use of fossil fuels (coal, gas, oil) for energy/power generation. Hence,

There are many emerging trends and opportunities in energy segment, both in the areas of conventional and renewables. The opportunities in conventional power segment include adopting new technologies and equipment for ensuring efficient power generation, transmission & distribution as well as for attaining energy efficiency. And with regard to renewable energy, solar power is taking off; wind power is maturing; biomass has been successful and in vogue for some time, among other technologies. There is tremendous opportunity in equipment manufacturing for all the mentioned sectors.

Outlook for the sector and KECL To make our systems and processes more energy efficient, saving electricity in lighting, manufacturing process, etc, is imperative. Venturing into power generation by using renewable resources such as solar & wind energy as well as focussing on equipment manufacturing hold the key to meet the growing demands. We are also negotiating with foreign technology providers to start operations in India by way of joint ventures with KECL. The performance of our company during 2010-11 has been much better than previous years. It is on a high growth trajectory and hopes to continue to climb the growth ladder.

May 2011 | Chemical World

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INDUSTRY VOICE Material Science

“Developing new technologies at an acceptable price is challenging” Vivek Singh is the Managing Director of Ashland India. Speaking about the benefits of adopting resin technologies, Singh puts forward his thoughts about the significance of sustainability measures for the chemical industry, in this interview with Mahua Roy.

Sustainability focus We believe that sustainability is important in today’s world for the betterment of our society tomorrow. Thus, for the past several years, we have been pursuing ways to reduce our historical reliance on solvent-based chemistries and to expand our offerings for customers seeking products developed with renewable or sustainable alternatives. Ashland Performance Materials was the first to offer a resin derived from renewable and recycled materials with our Envirez™ resin line, and our pursuit of renewable & sustainable chemistries has provided strategic underpinning for our recent acquisitions. Many of the products manufactured by our Ashland Aqualon Functional Ingredients commercial unit use cellulosic materials derived from renewable sources as ingredients. These products are used in industries ranging from food & cosmetics to paints and coatings.

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(GWP) impact for Envirez 1807 resin. When compared to the petrochemical resin, a standard batch of Envirez™ resin eliminates approximately 18,000 kg of CO2 from being released.

Challenges to solve During the recession period, there was a rapid decline in manufacturing activity, which resulted in surplus capacity. Although there has been an upswing, the market has yet to recover to the point of pre-recession levels. Opportunities exist to increase awareness and reliance on composite materials as alternatives to traditional substances like wood and steel. These new uses of such materials should help drive growth. Also, developing and offering new technologies at an acceptable price is challenging because of the dramatic increases in raw material costs driven by crude volatility and higher feed stock prices.

Benefits of resin technology

Mantra for sustainable growth

As the interest in moving towards a more sustainable approach in manufacturing, building or any aspect of life increases, savvy manufacturers are adopting and delivering technologies to meet this demand. Composites represent just one aspect of this environmentally focussed movement. The 2009 report, by Omni Tech International Ltd, observed that Envirez 1807 resin consumes 4.0 MJ/kg less energy during manufacture than a comparable 100 per cent petrochemical resin. The calculation takes into account the energy consumed in manufacturing as well as by farming and processing soy & corn into oil and ethanol, respectively. In addition, the study demonstrated the global warming potential

With regard to our efforts in the composites markets, I believe our history indicates how Ashland has been progressing towards sustainable growth. Today, composite manufacturers can choose from a variety of Envirez™ resins from Ashland to use in infusion moulding, casting, hand lay up, or other methods of manufacture with recycled bio content as high as 45 per cent. Ashland’s other commercial units all have environmentally focussed products as mentioned earlier. These products, coupled with our focus on research and development, serve as a good foundation for continued growth in sustainable technologies.

Chemical World | May 2011


INSTRUMENTATION

th ANNIVERSARY

Analytical instruments

Act today for a secure tomorrow Rapid industrial development has enhanced the quality of life, but taken a toll on the environment. To maintain harmony between technological development and the ecosystem, several analytical instruments and methods have been developed that can not only help resolve environmental concerns but also help deal with issues faced by segments like food, pharmaceuticals and petrochemicals, among others.

Anil Nimkar

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he efforts of mankind are improving the quality of human life. The needs are increasing according to individual expectations; however, basic needs such as food, clothing and shelter are of prime importance. Researchers today are in a race to find new biofuel feedstocks that can save energy and will not compete with global food & agricultural needs. Also, new pharmaceutical formulations with zero or minimum side effects are the need of the hour. These are the realities faced by the world today.

Challenges faced by analytical laboratories R Limited resources and mounting pressure on laboratories to meet

ever-increasing productivity demands R Varying skill levels of laboratory personnel making ease-of-use and

tailored complete solutions critical R Laboratory personnel need guidance including applications &

methods to ensure quality processes, reliable findings R New contaminants and adulterants are being introduced; hence,

development of methods for identifying these must be accelerated, and should be accurate as well R Accurate and timely results are a necessity, as health and well-

being are at stake

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Fortunately, there is a wide range of screening and confirmatory technologies to address these analytical concerns that impact the safety of the environment, food supply, energy resources and new materials. The analytical science activities help develop analytical tools, technologies, knowledge packs to protect the environment and the security of people in their surroundings. Thus, efforts are needed to transform information into actions for ensuring the safety of people today and the world in future. Providers of analytical technologies recognise that besides instrumentation, other factors critical to obtain answers include right training, methods, applications, standards, reporting and support. For example, application-focussed measurement solutions have recently been introduced as an innovative industry-driven sustainable segment-oriented programme. This novel approach is a collaborative problem-solving initiative to help develop applications-based customised solutions. It can be applied for safety and security of the environment as well as of the food, pharma & petrochemicals/polymer markets in order to assist these laboratories in improving their business ecosystems, while also supporting local, regional and global initiatives. Besides


INSTRUMENTATION

making available critical technologies for specific applications, this initiative provides solutions, method development and standard operating procedures to support key industry standards and regulations to facilitate the advancement of critical analytical equipment in industries that require the level of insights and information delivered by these technologies.

Analysing trends Analytical instruments have revolutionised the way chemical analyses are done today; historically, which were performed using wet chemistry. These methods, apart from requiring significant technical skills, provide limited sensitivity and specificity. With the advent of modern analytical instrumentation, these measurements can be accomplished using methods such as spectroscopy, chromatography, electrochemistry and other sophisticated instrumentation, which provide higher sensitivity, automation and ease of use. Incorporation of advanced computer capabilities allow for data interpretation, tabulation of results and easy sample tracking. The breadth of technologies in analytical instrumentation, software, consumables, applications & method development now available through innovative programmes allows scientists to obtain discerning insights into complex analytical problems and ways to mitigate those. Through programmes such as these, analysts have developed appropriate application solutions to accelerate the pace and precision of research & testing – whether routine or in response to natural or man-made disasters – to help ensure that new materials, drugs, formulations, food and consumer products developed are safe as well as effective. Therefore, such a holistic approach is unprecedented in its support of contract, private, research and academic laboratories – whether

Sustainable solutions by analytical instruments Environment: Technologies used for analysis include simple Ultraviolet-Visible (UV-Vis) for Chemical Oxygen Demand (COD), cations & anions and atomic absorption spectroscopy for assessing metal content. Trace metals can be analysed by using Inductively Coupled Plasma-Optical Emission Spectroscopy (ICP-OES) and ICP-Mass Spectrometry (ICP-MS) systems. Fundamental chromatographic techniques with sample handling tools such as head space, automated thermal desorption systems along with standard and specialised detectors are used for analysis of air toxins, ozone precursors, semi-volatiles & volatile compounds. Food safety: Various technologies with regulatory methods available today are used to determine additives & adulterants, heavy metal, pesticides, mycotoxins, drugs as well as antibiotics. These technologies include Headspace Gas Chromatography-Mass Spectrometry (HS-GCMS), High-Performance Liquid Chromatography (HPLC), Atomic Absorption Spectrometry (AAS) & ICP-OES, Infrared (IR) & Raman Spectroscopy, and Differential Scanning Calorimetry (DSC). Renewable energy: Analytical technology innovations are helping the rapidly growing biofuels industry by ensuring the quality of biofuels, from the field through processing to the final product, so that the fuel burns cleanly. Increasing solar and wind energy development also drives the need for analytical tools to research new materials for these upcoming developments.

a start-up in a rapidly growing economy or a high-throughput laboratory in a developed world. What all laboratories have in common is the need for accurate, reliable, dependable instrumentation and tailored application-specific solutions to monitor, analyse and detect variations in our ecosystem. These also must ensure the quality of products globally, including food, air, water, biofuels, pharmaceuticals and new materials.

Solutions for a secure future It is clear that analytical technologies are required to help solve critical global issues that impact the environment, food supply chain, energy sources, new materials, pharmaceuticals and security. Analytical scientists and

analytical tool providers need to lead the change in providing tailored solutions to support this fast growing and changing requirements. The specific future trends in analytical instrumentation will be focussed on miniaturisation and combination of techniques, which would reduce the cost and analysis time. Anil Nimkar is Director Global Application Development at PerkinElmer, Analytical Sciences. He has been with the company for last 25 years and is currently responsible for application development using analytical instruments in various segments such as environment, food, pharmaceuticals and petrochemicals for global utility. Email: anil.nimkar@perkinelmer.com

May 2011 | Chemical World

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AUTOMATION

th ANNIVERSARY

Automated design software

Getting the process right Productivity tools that can aid an engineer to design ‘right the first time’ are the need of the hour. This is exactly where automated Design for Manufacturing (DFM) review tools are useful. Such tools can integrate directly within the design environment, thus allowing the engineer to verify the design right when it matters. At the click of a button, the design under consideration is quickly checked for adherence to manufacturing guidelines of the organisation.

Prashant Chandanapurkar

P

rocess industries, like chemical, petrochemical and pharmaceutical, use a lot of mechanical components such as heat exchangers, boilers, mixers and trays, among others. Such industries that come under ‘continuous-product’ segment in contrast with ‘discrete-product’, a shutdown or delay in the operation of a plant/refinery highly impacts the revenues, and losses may run into crores of rupees per day. This means that schedule delays have a high impact on any given project.

Design for manufacturing Historically, design and manufacturing departments have been working together to improve manufacturability of components as early as possible in order to avoid rework and scrap. Design for Manufacturing (DFM) evolved as a

Optimised productivity: Right the first time For the mechanical components forming a vital cog in the process industry, this ultimately translates to ensuring that the product lifecycle is tightly controlled and products are manufactured & assembled (either inhouse or onsite) within the specified timeframe. This highlights the importance of the ‘get designs right the first time’ paradigm. The impact of avoiding design manufacturing iterations cannot be overstressed.

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practice to reduce the design to manufacturing iterations. Organisations started practising DFM by having early design reviews, creating & using manufacturing checklists/guidelines/handbooks, besides conducting frequent consultations with manufacturing departments. Manual design reviews can be inconsistent and also timeconsuming, especially for large designs and assemblies. In many organisations, the DFM handbook may just gather dust on the shelf because of problems related to ease of access and regular updates. Regular collaborative discussions between design and manufacturing personnel are definitely useful. However, as organisations grow larger and become global, distance & time pose huge problems, thus restricting the number & length of such reviews. To derive optimal benefits from such reviews, they must focus on the higher level issues whereas basic recurring issues must be tackled using other means. Productivity tools allow organisations to capture their best practices and manufacturing expertise in the form of a knowledge base, which can then be used for quick automated design reviews right on the design engineer’s desktop – thus saving many review cycles. These tools can also be customised to extend their capabilities beyond specific manufacturability checks into assembly and installation domains.


AUTOMATION

Significance of productivity tools: A case study Design

Manufacturing

Small, seemingly insignificant checks can avoid costly rework and drive improvements straight to the bottom line. Here is a case in point. An organisation used to design and manufacture sheet metal components, which were assembled together onsite as part of mass transfer mechanisms in refinery projects located in many parts of the world. Assembly of sheet metal components onsite meant that appropriate type and number of fasteners were to be shipped onsite for assembly, in addition to the sheet metal components. The organisation used to ship the right number of fasteners for assembly and an additional quantity as replacement fasteners. On numerous occasions, it turned out that the fasteners shipped onsite were not sufficient for the assembly. In such cases, the replacement fasteners had to be used and another shipment for fasteners had to be made. If the replacement fasteners were inadequate or the type of fasteners was incorrect, the assembly process came to a standstill resulting in huge financial losses per day. This typically happened because the designers used to count the number of holes manually and then decide the number of fasteners required. This introduced the possibility of errors. As a solution, automated design for assembly check for the fasteners was added to their design environment. The check was customised into the automated DFM review tool and the fastener count & types were automatically inferred from the location and size of the holes in the design. This freed the designer from the monotonous task of counting the holes allowing him to concentrate on the innovative aspects of the design instead.

Installation’. For components which are designed and manufactured to be assembled at an onsite location, which may be thousands of miles away from the design/manufacturing centre, it is imperative to avoid any assembly-related problems. An organisation used to design, manufacture and ship components, which used to be assembled in large hollow tubular heat exchangers. In this case, the size of the component was constrained by the tube diameter. In case the tube had a bend, it introduced an additional complexity. The designers used to sketch the assembly in two dimensions and try to visualise the assembly process. This method was not successful on many occasions causing rework and schedule problems. Again, in this case, a custom ‘Design for Installation’ check was added to the review tool for easy use by the designer. A user could now execute the automated DFM review tool on a complete assembly and not only check for manufacturability issues but also specific assembly and installation issues at the click of a button. A few additional hours spent on the designer’s desktop saved huge amount of money and hundreds of man-hours for the organisation.

Design for installation

Automated DFM review tools

Another case that deserves a mention is related to ‘Design for

Automated DFM review tools can not only be used interactively but can

Assembly

Longer timeline

Source: Geometric Ltd

Figure 1: Design-manufacturing-assembly iterations

also be built into the organisation’s PLM system using batch operation to provide integrated checks, prior to design promotion/submission. Customised reports can be generated and circulated to concerned users inside or outside the organisation. The batch operation also allows quality engineers to quickly review designs received from external suppliers as per the best practices of the organisation. For typical mechanical components used in the process industry, the lifespan is higher compared to, say, components in the hi-tech industry. Also, the number of manufactured instances of a particular design may be lesser in number. However, the impact of delay is substantially higher, so all DFM efforts need to be focussed on improvements, which help save time required in manufacturing and assembling the product, right from the concept stage. Deploying automated DFM review tools and strengthening their application by adding custom checks specific to the organisation’s best practices can help deliver easy-to-manufacture designs as per required schedule. Prashant Chandanapurkar is the Marketing Manager at Geometric Ltd, a specialist in the domain of engineering solutions, services and technologies. Email: prashant.chandanapurkar@geometricglobal.com

May 2011 | Chemical World

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INDUSTRY VOICE Automation Solutions

th ANNIVERSARY

“Automation suppliers are offering a range of energy-efficient technologies” Louis Meyer is the Director, Global Industry Solutions for Chemical and Biofuels Industry at Invensys Operations Management. In this interview with Rakesh Rao, he discusses the importance of automation in achieving sustainable development.

Addressing environmental issues Chemical manufacturers are under regulatory (GHG reduction) and economic (cost of energy, competitiveness, etc) pressures. To this end, a steady trend to reduce both the energy and carbon dioxide (CO2) intensity is apparent. It is a self-evident fact that initiatives to yield increased energy efficiency invariably lead to more effective management of production processes, such as reducing GHG emissions & waste, and improving scheduling of all inputs, including energy. The process of improving energy efficiency also reduces variable costs of production and increases the business competitiveness. But it is not only about CO2: The truism applies equally for all the other emission streams. Automation suppliers have responded by incorporating a range of energyefficient and environment-friendly technologies into their offerings, such as: R Solutions that make it better/easier to deploy and maintain sensors wirelessly (measuring energy streams is often the biggest barrier to effective energy reduction) R Software that optimises the overall plant energy balance and better schedules the energy supply and consumption, eg, when best to start batch reactors, given the required production schedule, the availability and cost of steam, electrical power, etc R Better information management systems to help identify sustainability bottlenecks In addition, automation solution providers are expected to provide significantly better information management: not only basic environment-related data gathering, processing, historisation and reporting, but also data validation, since this data is often used as the

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basis for fiscal/commercial transactions, such as carbon credits trading and regulatory reporting. This type of information is subject to audit and as such must be proven to be accurate. For this purpose, it is not sufficient to simply rely on the raw instrumentation measurements. Rather, statistical data reconciliation tools are required to provide the necessary rigour & data accuracy.

Sustainable development The chemical industry will have no choice but to adopt sustainability, both in response to regulatory pressures cascading from national commitments to the Kyoto, Copenhagen and other agreements, and also from more informed younger consumers who are increasingly defining the future of energy consumption. Price will ultimately no longer be the ultimate driver of consumption patterns: The ethical and environmental stances of the manufacturers will also be important. To this end, the chemical industry will not only need to move to proven lower energy and GHG intensities, but also consciously and visibly switch to or replace production with biochemicals.

Importance of automation for emerging economies Initially, high-growth economies like India and China might not place sustainability as their highest priority, and hence not apply automation tools within their chemical facilities. However, as their markets shift from internal growth to a more global market, where factors such as carbon footprint labelling becomes the norm, automation technologies will become as relevant as they are already in today’s ‘mature’ economies.


Process Technology INDUSTRY VOICE

“Sustainability cannot be imagined without process efficiency” Jose Hernanz is the Managing Director of Alfa Laval (India). He joined Alfa Laval in 1983 and since then has held several top positions in Portugal, Spain and South America. In a discussion with Rakesh Rao, Hernanz shares his views on the emerging trends in chemical processing technologies.

Addressing the environmental issues The growing environmental awareness has impacted the chemical industry and the suppliers of equipment/technology to this industry in a positive way. And I say positive both from the standpoint of sustainability and from the standpoint of companies such as Alfa Laval that have been spearheading the creation of environment-friendly technologies, which help us to sustain. Now everyone in the industry is more conscious of his/her responsibilities. We at Alfa Laval have identified sustainability as the key for growth of the chemical industry for some time now. Besides, we also have organised ourselves to be able to measure environmental impact of both our products and processes on one hand and our own operations on the other. Energy savings and environmental care are more in focus than ever.

Technology for achieving sustainability Technology plays a vital role in achieving sustainability of process industries. Alfa Laval is aiming at optimising the performance of our customers’ processes, time and again, by offering suitable solutions & products. Alfa Laval is also committed to bringing new processes/technologies into the market, so that overall cost of the plant is optimised. For example, Alfa Laval has brought into the market welded plate heat exchangers, which provides opportunities for more effective heat recovery with a lower pressure drop that increases the efficiency and reduces overall energy costs of the plant, besides also reducing the greenhouse gas (GHG) emissions.

Emerging economies and green solutions Sustainable development is the only way forward especially for emerging economies like India and China. At Alfa Laval, we are fully committed to this. To quote our Global President and CEO, Lars Renstrom, “Matters relating to environmental aspects of Alfa Laval’s business are high on our corporate agenda. Our main contribution to a cleaner global environment stems from an increased use of our products. We are also working actively to address issues related to our own environmental impact.”

Efficient processing technology Alfa Laval’s products are frequently used in many applications to assist customers reduce impact on the environment – in other words ‘green processes’. Among the opportunities are the demand for efficient heat recovery in industrial processes, production of alternative fuels & innovative solutions such as ballast tank cleaning and treatment of truck crankcase gases. We call it ‘clean technologies’. Sustainability cannot be imagined without process efficiency.

Making processes green With step-by-step focus on ‘green operations’, our internal environmental processes has been strengthened. More than 90 per cent of the production value comes from ISO 14000 certified sites, based on a common environmental management system. One of the important decisions taken by the Group Management is to go for a yearly carbon dioxide reduction, with a reduction target of total 15 per cent between 2007 and 2011.

May 2011 | Chemical World

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INDUSTRY VOICE Process Technology

“Technology will be a key driver in achieving sustainability� V Gokul Das is the Managing Director of HRS Process Systems Ltd. With over 20 years of hands-on experience, he has technical knowledge of various design software for heat exchange, process design, etc. He shares his views on the importance of technology in achieving sustainable growth with Rakesh Rao.

Changing role of suppliers of technology/equipment Growing environmental awareness due to natural and man-made disasters, apart from strict pollution control norms, has helped the chemical industry (and other industries) make a decisive move towards green and sustainable solutions. Most companies have started undertaking efforts for proper segregation & management of waste, effluent treatment, and ensuring reduced greenhouse emissions as well as energy consumption, with an aim to reduce their environmental footprint. The technology/ equipment suppliers, in turn, need to develop products that can address these expectations, and achieve all-round development.

Technology and sustainability Technology will be a key driver in achieving sustainability. Efficient processing to get better productivity/conversion from same resources will require better designed equipment and technology. New technologies/processes will be required to recycle/reuse resources, byproducts and effluents. At HRS, we are working on few key projects that are in the areas of reducing emissions to environment by better vapour condensation/ recovery, energy savings with heat recovery from all types of processes, thereby reducing environmental impact due to high temperature exhausts/effluents. In addition, projects pertaining to thermal treatment of various domestic and industrial effluent for further processing into fuel, thermal evaporation combined with power generation to treat municipal/industrial wastewater are also undertaken.

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Meeting regulatory requirements Today, environment protection is a global cause and everyone is more educated, concerned and responsive to any adverse impact on environment by their actions. Regulations and initiatives (like SHE, Responsible Care, Recycle, Star Rating, etc) have been instrumental in helping the industry become more conscious about the need to evaluate and make their processes energy-efficient, low on pollution and sustainable. In turn, there is similar expectation from technology/equipment suppliers and those who can develop/have technology, which enables industry achieve these goals.

Sustainable development and India Economies cannot progress at the cost of the environment. Exploitation of environment/natural resources, including land and water, due to heavy industrial investment can be detrimental in the long term. Successful sustainable development in the 21st Century will undoubtedly require rising economies like India & China to adopt measures and new technology, which not only helps to reduce energy consumption & pollution but also provides long-term sustainability of environment.

Efficient processing technology Sustainability will need efficient processing technology to ensure optimum use of resources with minimal wastage, impact on environment and conservation of energy. We also need new technology to harness resources that are renewable, save on non-renewables, recycle/ reuse products, reduce environmental footprint and create a sustainable ecology.


Process Technology INDUSTRY VOICE

“Increased competitiveness should attract additional investment in technology” Daksh Malhotra is Marketing Director of Everest Group. A mechanical engineer, he has gained immense expertise in vacuum engineering from IIT, Kharagpur. In a conversation with Prasenjit Chakraborty, he shares his views on the importance of sustainable development.

Key to sustainability Sustainable development is a pattern of resource usage that aims to meet human needs while preserving the environment. This enables to meet the needs of people not only in the present, but also for generations to come. The field of sustainable development can be conceptually broken into three constituent parts: economic sustainability, environmental sustainability and socio-political sustainability. Sustainable development calls for policies to stimulate the enhanced uptake of cleaner technologies by the chemical industry, at the same time taking into account the fact that it is, to a large extent, within the industry’s own responsibility how it develops cleaner modes of production and what their exact nature will be. Environmental policy can play an important role in such a context and can best serve this purpose if it is designed in an innovation-friendly way. This means, on one hand, it needs to create pressures that motivate companies to innovate while, on the other, it has to increase the likelihood that product and process innovations in general will be environment-friendly.

Role of technology in sustainability A key element of an innovation-oriented sustainable development is science & technology. We should understand the importance of considering sustainable development in science and technology in a market economy, which selects products & processes not on the basis of environmental criteria but on that of profitability. There is a need to develop policies that can take advantage of the cumulative

and self-reinforcing characteristics of technical change by guiding industry’s continual research for innovations and technologies towards those which are environmentally beneficial. Ideally the process would be self-reinforcing for new solutions that would follow within the same technical pathway. The experience gained from new technology, which is economically competitive, should lead to learning effects that gradually improve the cost-effectiveness, and thus also the competitiveness of the technology. Increased competitiveness should then attract additional investment in technology, leading to further technical improvements and cost reductions & a higher number of economically feasible applications.

Sustainable development for emerging economies A Western commentator once said, in the 19th century, the UK taught the world how to produce goods, in the 20th century the US showed the world how to consume, if India & China wants to lead the 21st century, they must teach the world sustainable development. With a combined population of 2.4 billion, China and India are twice the size of Europe and North America. To develop in a sustainable way is, therefore, essential.

Scope for Everest Group Everest Group has strongly realised and witnessed the shift of the industry towards green solutions. We aim to build the most cost-effective development firm through a right blend of our world-class ‘best practices’ with local experience and knowledge.

May 2011 | Chemical World

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RESEARCH STRATEGIES

th ANNIVERSARY

R&D in sustainable development

Technology & innovation hold the key To make sustainable development an ongoing activity, it is imperative to continuously analyse and improve practices & processes to reduce their adverse impact, if any, on the health of people and environment. Besides, it is equally important to invest in technology and innovation. Courtesy: LANXESS

Dr Joerg Strassburger

C

onducting business in a profitable manner, while keeping in view the interests of the society, and minimising adverse impact on the environment is what sustainable development is all about. In today’s age of rapid urbanisation and industrialisation, wherein available natural resources are being consumed at an alarming rate, sustainable development is certainly the need of the hour for the society at large. However, businesses and governments need to play a more active role in achieving this target. Irrespective of the size of the organisation, nature of business and geography, there is an incumbent need for everyone to take up this challenge of developing ways to meet

On a path to sustainability R Irrespective of the size of the organisation, nature of business

and geography, it is imperative for every company to maintain necessary balance in the environment R Every product manufactured must be analysed for the carbon

footprint it releases, both during production and application R To achieve sustainable development, it is important to invest in

technology and innovation R Business establishments and the government need to play a more

proactive role in sustainable development issue

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the future demands, while maintaining the necessary balance in the environment. Issues like scarcity of clean water and unexpected climatic changes across the globe are connected to the well-being of every individual on this planet, and hence these problems can only be dealt with a collective effort, driven by a mass consciousness. Now that sustainable development is considered to be an essential part of all businesses and development activities, there are few questions that need to be taken into account such as – how to achieve this balance on an ongoing basis? Who/what will be required for an organisation to carry on their efforts for sustainable development? Which is the optimal methodology that offers minimum risk, yet opens a path for constant innovation that is necessary to take this forward?

Understanding the issue Every product that is manufactured must be analysed for the carbon footprint it releases, or emission of any other potentially hazardous gases, both during its production and application. Industries that use such chemicals to make their products must also evaluate the environmental impact of the final product, besides considering the extent of consumption of the product in the society. The more widespread the consumption, the higher


RESEARCH STRATEGIES

the risk, hence the evaluation should be more stringent. At the same time, the cost of the product and the calculation of risk assessment should be borne in mind. If the overall cost is higher than the sales it meets, then the process will not be sustainable. So, businesses will have to evolve a methodology in which this process is made sustainable in the first place. Organisations that do not have scale are unable to focus on areas like risk assessment and environmental impact of products. Nevertheless, it is important to invest in technology, people and processes in order to facilitate continuous R&D. Without this investment, it is difficult for organisations to identify areas of improvement, both in terms of quality and environmental impact of the product. In the context of the chemical industry, safety is an important parameter as well. Safety standards maintained during the lifecycle of the product, product handling, packaging and transport are also vital.

requirements in the area of operation and should ensure compliance with statutory and environmental regulatory requirements. Overall, organisations should strive to reduce consumption of renewable resources, develop productive ways of reusing resources and recycling the used/waste resources. Health, safety, quality and environment should form the key pillars of sustainable development. This would gradually raise the bar for standards on protection of environment, utilisation of renewable resources, and most importantly, it would foster innovation among the community to come up with safer and better ways of pursuing their operations.

Adopting international practices

Technology & innovation

For continuous sustainable development, there has to be uniform standards in environmental management, across the globe, and every organisation should be equipped with tools to measure & assess environmental performance and risks in its areas of operation. This should be audited regularly by organisations themselves and then reviewed by a body of global relevance. These guidelines should be based on international industry practices and standards for environmental management & sustainable resource consumption. The guidelines must ensure that these standards are maintained across the supply chain of the business process. Suppliers, vendors, employees and other stakeholders who impact the business should be informed and trained to abide by the same standards. These standards should meet all legal

R&D plays a vital role in assessing the impact on environment and developing new ways of minimising that impact.

In order to achieve sustainable development, it is quintessential for companies to invest in technology and innovation. Adoption of new technologies and innovation in processes and practices would provide the necessary tools to achieve higher standards of safety, quality and environmental protection. For the chemical industry, it is even more critical to innovate for making products that are high on quality. Besides these, products need to be developed by sustainable means and meet the future needs of the customer. In summary, there is R&D involved in developing new products, which assure higher performance and are safer for the environment & people; creating more resource efficient production techniques & processes; and new manufacturing technology. This is not all, R&D also plays a vital role in assessing the impact on

Courtesy: LANXESS

environment and developing new ways of minimising that impact. Overall, R&D is a specialised function that calls for allocated resources in terms of financial investment; infrastructure like laboratories; and qualified people (technicians, scientists, environment engineers, among others). Ideally, this should be a centralised function at the core of the organisation where every business unit and employee can participate in a consistent manner. New ideas for resource optimisation can come from anywhere within the organisation. Constant assessment, measurement, analysis of impact and controlling the outcome entails sustainable development. Not just the organisation but the entire supply chain dealing with the organisation must be geared up to meet the enhanced standards of sustainable development, starting from its own employees to suppliers and vendors, customers, end- users, among others. Dr Joerg Strassburger has been the Country Representative and Managing Director of LANXESS India Pvt Ltd since March 2005. He is responsible for the operations and development of LANXESS’ business units in India. Before this assignment, Dr Strassburger was head of the Group Function Corporate Development at LANXESS AG, and was actively involved in developing LANXESS’ global strategy. For details, contact on email: rhituparna.mitra@lanxess.com

May 2011 | Chemical World

55


PAINT INNOVATIONS

th ANNIVERSARY

Coatings industry

In search of green solutions The significant challenges encountered by the paints & coatings industry on account of globalisation and growing environmental concerns have compelled it to seek sustainable alternatives. R&D plays a crucial role in developing environmentally advanced technologies, thereby helping the industry to go green and gain a competitive edge.

Shrikant Kulkarni

S

ustainability is a selling point in the global paints and coatings market. Consequently, manufacturers are seeking raw materials that will allow them to obtain recognised eco-labels for their products. At the same time, they must also meet end-user demand for odour-free paints that are available in the full range of the colour palette. The global paint and coatings industry has been making the shift to more environmentally advanced technologies for more than 50 years,

Stages of evolution of sustainable paints The breakthrough of creating sustainable paints and coatings can be broadly classified into three stages of evolution: R Past – Reduction of hazards and hazardous substances:

This phase included production of water-based paints, reduction/ elimination of VOCs, and elimination of hazardous chemicals in paints R Present – Ecological and toxicological impact and waste

reduction: During this stage the focus was on compliance with legislation and eco-label compliance, energy-efficiency and biodegradability R Future – Impact on the environment and climate changes:

The focus areas will be shifted towards climate change, renewable raw materials and impact on eco-systems

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when water-based acrylic emulsions were introduced for use in house paints. Today, clean water-based technologies are used around the world, accounting for a significant percentage of coatings market and witnessing rapid growth. Water-based acrylic technology has advanced to the point that it is increasingly used in some of the toughest industrial coatings applications, where less desirable, solvent-based products have been traditionally used. These solvents create volatile organic compounds (VOCs), which contribute to air pollution. Going green has become a necessity and slowly becoming a reality.

Significance of research Diminishing petroleum reserves & concomitant price rises, greenhouse gas-induced climate change will result in channelising the future R&D work in paints and coatings towards developing alternative technologies. Raw material sustainability will be the key driver for business in future. With countries and legislation around the world becoming increasingly strict on human health & environment safety, the paints and coatings industry will also be required to follow in the same direction. During the last few years, questions regarding ‘green’ coatings have become more frequent. Therefore, most of the research in the paint and


PAINT INNOVATIONS

coatings industry is directed towards evaluating and introducing such ‘green’ components in paints. Sustainability and high performance is the combination that ideally serves today’s consumer demands, and the one that the paints and coatings market is seeking to achieve. Traditionally, however, the two have been thought of as mutually exclusive. Latest developments show that being green and providing superior performance are not mutually exclusive. Intelligently designed and innovative products based on renewable resources can match, and in many cases, exceed the performance of the current market standards, resulting in attractive offerings.

Going green Among the defining characteristics of Green Chemistry are technologies based on renewable resources. Modern chemistry allows natural raw materials to be modified so as to gain

high performing coatings materials that can match and even outperform petrochemical-based ones. Pigments, binders and additives are key ingredients for paint formulations. Sustainability principles can be applied to each of these categories. Sustainable pigment technology has moved away from using heavy metal pigments and residues due to their toxicity. Further, there have been improvements in processes for pigment manufacturing that makes them increasingly green. Binders or resins are the second most prominent component of coating formulations and they offer many opportunities to impart green principles, for instance, the development of water-based, high & full solids paints and the use of renewable resourcebased chemistry. Within the broad framework of sustainable development, the government, academia and industry strive to maximise resource efficiency via conservation of

energy & non-renewable resources, risk minimisation, pollution prevention, reduction of waste at all stages of the product lifecycle, and the development of products that are durable and can be reused as well as recycled. Therefore, given that ‘sustainable chemistry’ is the design, manufacture and use of efficient, effective, safe and environmentally sound chemical products and processes, it will be apt to say that all sustainability-related research in paints & coatings industry is about sustainable chemistry. Shrikant Kulkarni is the Managing Director, Functional Chemicals at AkzoNobel India. He is responsible for overall management and P&L of Indian operations. Prior to this, he has had vast managerial and technical experience spanning 27 years in the chemical industry in India. For more details contact Humsa Dhir on email: humsa.dhir@akzonobel.com.

May 2011 | Chemical World

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INDUSTRY VOICE Academia in R&D

th ANNIVERSARY

Photography by: Joshua Navalkar

“Green engineering should be employed to develop environmentally benign technologies” Dr G D Yadav is the Vice Chancellor of ICT, Mumbai. He is associated with a number of Central Government committees and other professional bodies. In an interview with Mahua Roy, he talks about where sustainable R&D should be headed and efforts of ICT towards this goal.

Sustainability efforts by the industry

Adoption of green technologies

Definition of sustainability hinges on the fact that the needs of current generation should be met without compromising on the resources of future generations. Sustainability therefore pivots around three parameters – economic, environmental and social. It is a triangular facet, wherein all three apices are imperative. For eg, we may develop a green and ecofriendly technology, but it might be expensive; or we may develop a technology that generates employment and is economically strong, but turns out to be polluting. Both these alternatives are unacceptable in terms of sustainability.

Many-a-time, certain chemical processes are hazardous, but the end-product is benign. Such reactions can be controlled robotically, or such processes can be redesigned. Also, efforts should be taken towards limiting the use of solvents. Water, aqueous blends, supercritical CO2, smarter materials like nano particles can be considered. Another idea is conversion of wastes into something productive. Waste from one industry can be feedstock for another. A liability can be turned into an asset. Waste minimisation should be emphasised at each and every stage of a process. Reaction engineering can be directed towards conducting reactions at ambient temperature and pressure, in open vessels, using catalysts, which may be enzymatic, bio, or chemical.

Direction of R&D efforts A polluting process or reaction needs to be replaced by one which is not. While trying to develop such processes, the economy of scale must be considered. Non-catalytic processes must be rejected, effluents must be treated optimally, more so, zero liquid, zero gas discharge plants and processes must be encouraged. Atom economy should be taken into consideration to make the reactions achieve close to 100 per cent yield, thereby reducing unwanted waste products. Green Chemistry or engineering should thus be employed to develop environmentally benign technologies, which are not energyintensive. Reprocessing of plastics using depolymerisation to obtain monomers, biooils, etc, is a technology that needs to be adopted on a wider scale. Also, R&D should be directed towards development of functional materials, eg, functional textiles.

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Efforts by ICT ICT treats the matter of sustainability with great seriousness. Green Chemistry subjects are integrated in the curriculum, right from undergraduate courses. Apart from that, various awareness programmes are conducted all round the year. Also, we are promoting our campus as an ‘eco-campus’. We have undertaken various measures towards sustainability We have several governmentand industry-sponsored projects, most of which deal with sustainable measures. For instance, one of our centres is sponsored by the Department of Biotechnology, where we are studying to convert cellulosic, hemicellulosic, ligocellulosic materials to make bioethanol, biohydrogen, etc.


R&D in Paints INDUSTRY VOICE

“Mimicking the nature’s ways is definitely the way towards futuristic R&D” Dr Swapan Kumar Ghosh is the Vice President - R&D at Shalimar Paints. In an exclusive interview with Mahua Roy, he points out the areas where sustainable development can work wonders for the paints & coatings industry.

Challenges before the paints industry The major composition of paints (& coatings) viz, binders, pigments and solvents are largely derived from non-renewable resources. Although various solutions have come in the form of water-borne or solventless high solid paints and coatings, eliminating partially or completely the solvent part, they are still not practical in all the applications. For binders also, limited renewable chemistries are known while pigments continue to be highly dependent on the natural ores. From the industry point of view, the issue is price volatility of these raw materials, so the driving factor is more ‘solutions’ rather than ‘green solutions’ for the industries. However, it is necessary to protect our environment from pollution especially resulting from the paint raw material feedstock and/or from finish paint. It is a fact that only renewable resources can offer long-term solutions.

Futuristic technologies Although the paint manufacturing process is not energy-intensive, the carbon footprint – greenhouse gases produced through burning of fossil fuels – in the paint industry is the cumulative effect of entire supply chain activities. As far as waste/energy management and productivity augmentation are concerned, major manufacturing companies implement such policies as part of their good manufacturing practices and continually improve upon their processes like ‘zero discharge’, ‘zero defects’, ’first time right’, so on and so forth. New engineering machines, processing equipment, devices, characterisation instruments, etc, play a vital role here. When it comes to new technologies, understanding and mimicking nature’s ways is definitely the way

towards futuristic R&D. Sol-gel, nanotechnology, thin film coatings and energy-saving smart coatings constitute the future technologies.

Industry-academia partnership If we take it as a moral responsibility to give back to the environment what we have taken, then the question should not be academics or industry, you have to contribute anyway. But, since we are in a system divided into these two, both have to join hands to understand the real-time problem of sustainability and achieve the goal of greener solution. While the industry should take the onus of funding such projects with no immediate returns on investment, the academia should utilise its resources to the fullest and attempt to come out with some practical & innovative solutions. And finally to bring about a ‘green change’, not only scientists but governments also have a crucial role to play. The challenge of the scientists is to make these green renewable solutions perform in the adverse environment just like the non-renewable systems work today, and strict environment legislations enforced by law should help in implementing the same.

Green R&D at Shalimar Paints Shalimar Paints has recently set up its second R&D centre at Nashik, Maharashtra, and special focus is given to both, use of green materials and processes during manufacturing as well as their impact after the products reach the enduser. From manufacturing point of view, zero effluent discharge and technologies to increase the production efficiencies through use of latest engineering equipment will be the key for future growth.

May 2011 | Chemical World

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INDUSTRY VOICE Lab Equipment

“The analytical instruments should provide eco-friendly products” Ramanathan Ramaswami is the General Manager (Chemical Analysis Group), Agilent Technologies. In conversation with Mahua Roy, he talks about the contribution of the analytical instruments industry towards building a sustainable future for the chemical industry.

Sustainability advantage ‘Sustainability’ means having a responsible attitude towards conducting business. Sustainability continues to make us a better and more efficient organisation by reducing waste, lowering costs, driving innovation and improving the quality of life. For a sustainability programme to have an impact on business performance, it must be integrated into the business strategy and operational practices of a company. Businesses that understand the benefits of sustainability will create more value, and in turn, be rewarded by the customers, market and investors.

Contribution of the analytical instruments industry The analytical instruments industry follows and exceeds the regulations set by various government agencies to make sure that the products developed meet the regulatory requirements completely. The industry also provides innovative solutions to check and identify the chemicals that are harmful to human life & environment, to make sure that the air we breathe, the water we drink and the food we consume are free from toxic chemicals, elements and pathogens.

Futuristic focus areas The analytical instruments industry should focus on manufacturing products that are environmentfriendly, and facilitate waste recycling, besides minimising the environmental impact of product packaging. The industry should also strictly follow the regulations laid down under ISO 14001 and Environment, Health and Safety Management System. Additionally, the industry needs to adhere

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to some of the new regulatory trends such as Restriction of Hazardous Substances (RoHS); Waste Electrical and Electronic Equipment (WEEE); Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH), and Classification, Labelling and Packaging (CLP). Inventory and display space is becoming a constraint and the industry should make products that occupy less space, emit less heat and consume less power. The industry also carries social responsibility and should align with ISO 26000 standards.

Hurdles faced The analytical instruments industry remains dynamic to face the various new and day-today challenges. As the technology develops and more new chemicals, contaminants and toxins surface, the industry needs to keep on developing new technologies and methods to identify the substances and detect them. The industry must also cope up with new regulations and make sure that the manufacturing processes as well as raw materials/packaging materials used by them, etc, meet all the environmental regulatory needs.

Agilent’s success mantra Agilent Technologies is committed to conducting its business in an ethical, socially responsible and environmentally sustainable manner. This commitment is consistent with our corporate objectives and is essential to continued business success. Agilent also informs suppliers about its Environmental and Social Responsibility (ESR) Expectations and requires them to adopt management practices aligned with these expectations.


EMISSION NORMS

th ANNIVERSARY

Clean Development Mechanism

A mission in the right direction?

The Clean Development Mechanism (CDM), a first-of-its kind mechanism for environment conservation, enables developing economies to assist developed countries in meeting their greenhouse gas (GHG) emission reduction targets. It helps nations in fulfilling reduction commitments in a flexible and cost-effective manner. Though it attained a considerable success, uncertainty looms large about what will happen next. Read on…

Rachel Mountain and Alexander Sarac

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DM initially started as a promise by the developed world to developing countries and as an instrument to facilitate technology transfer & investments for exploring the cheapest GHG abatement solutions. CDM, defined in Article 12 of the Kyoto Protocol, reflected one of the first in practice market-based mechanisms applied to meet environmental goals, and as such was the trailblazer for what businesses have come to call environmental markets. However, despite the unequivocal success of CDM, it has still not managed to shake some of the criticism that it received from certain stakeholder groups. The CDM’s primary objective was to reduce GHG emissions in developing countries, and it has done precisely that. In addition, it has facilitated technology transfer, contributed to sustainable development and helped facilitate a

Back to basics CDM, defined in Article 12 of the Kyoto Protocol, reflected one of the first in practice market-based mechanisms applied to meet environmental goals, and as such was the trailblazer for what businesses have come to call environmental markets.

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global awareness on climate change. However, for some, the CDM’s success in registering projects and generating Certified Emission Reductions (CERs) has actually fostered concerns about the concept of making a return on environmental investments and the conundrum, as some people see it for safeguarding environmental integrity at the same time.

Curbing GHG emissions The CDM epitomises how effective market mechanisms and the private sector can be when there is certainty about the environment in which investment decisions are being made. This flexible mechanism has facilitated engagement by businesses, and the private sector brought an entrepreneurial spirit to bear on reducing emissions in developing countries and helped drive technological advancements in both developed & developing countries alike. Post-Marrakech, and especially post-Montreal (when the Kyoto Protocol entered into force), the CDM proved to be one of the few bright lights in an otherwise difficult international climate change arena. Even with the CDM’s success, however, (due in part to the difficulties of the multilateral international negotiations) 2012 looms on the horizon and still there is much uncertainty about


EMISSION NORMS

what will happen next. Even with a commitment from the EU-ETS Phase III to continue to accept CERs, there are conditions and caveats with regard to eligibility. In addition, developments in Cancun, although positive in terms of a future role for ‘project based’ and ‘new mechanisms’, still lack the necessary clarity to drive sustained investment in GHG abatement activities.

Standardised baseline approach As we move forward to debating what post-2012 new mechanisms should look like, it is vitally important to look at the CDM in order to fully benefit from hindsight and the experiences that have been garnered over the last 7-10 years. In particular, it is also extremely useful to examine in detail why some countries, like China, have benefitted from CDM as opposed to those that have benefitted less. The question still remains… how to build on the success of CDM to expand and scale up GHG mitigation activities

on a global basis? The answer is likely to include a range of approaches. One option that has been widely talked about is how the use of standardised baselines could provide further scale and efficiencies for the CDM. The appeal of standardised baselines is that a level of domestic action can be incorporated across a particular industry sector or sub-sector and also continue to incentivise further action via international support in the form of either CERs or another type of Emission Reduction (ER). Hence, one can incorporate a standardised baseline approach for some relevant industries for CDM. However, the missing link in the chain is demand. In Phase III of the EU-ETS projects registered after December 2012, which are not from least developed countries, are not eligible for inclusion. Clearly, a standardised baseline approach would not meet this deadline. As a result, it will be difficult for the private sector to make new CDM-based investments, and,

as a result, limit the potential impact that standardised baselines could have in driving increased domestic effort in reducing GHGs in emerging countries like China. Demand for ERs is key to making this approach work, and if the EU can reach some sort of bilateral agreement with China (if there was no agreement in Durban), then standardised baselines could play a key role in further supporting the country’s transition to a low carbon economy, while creating additional opportunities in other developing countries globally.

Rachel Mountain is the Head of Global Marketing at EcoSecurities. Email: rachel.mountain@ecosecurities.com

Alexander Sarac is the General Counsel at EcoSecurities. Email: alexander.sarac@ecosecurities.com

May 2011 | Chemical World

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WATER MANAGEMENT

th ANNIVERSARY

Zero liquid discharge plants

New-age effluent treatment Zero Liquid Discharge (ZLD) as a concept is beneficial to industrial plants and municipal corporations as well as the environment & society at large. This is because water is recovered and no liquid effluent is discharged into environment. ZLD systems employ the most advanced wastewater treatment technologies to purify and recycle virtually all the wastewater produced.

Uday Muley & Sonal Joglekar

M

any industries generate wastewater that contain organic impurities and inorganic salts. Primary treatment includes physicochemical & sedimentation processes and removal of oil & grease, suspended solids & heavy metals. Secondary treatment is used for the reduction of organic impurities, while tertiary treatment like reverse osmosis (RO) is applied for removal of dissolved salts. Evaporation is often considered as the final treatment step for such wastewater to reduce their volume or as part of a ZLD concept.

Technologies available The ZLD system removes dissolved solids from the wastewater and returns good quality water to the process. After biological treatment, wastewater is normally treated through fine filters and RO plants. Two or three stages of RO (membrane filtration) may be used as the first step to concentrate dissolved

Evaporators for ZLD plants Typically 85-90 per cent of effluent volume may be recovered as good quality water with TDS of approximately 50-250 ppm for reuse in process applications and concentrate may have TDS of 3-6 per cent (w/v) (ie 30,000-60,000 ppm). For the first stage RO, brackish water RO membranes are used, whereas the following stages employ sea water RO membranes on account of the high TDS in the concentrate of RO reject. Evaporators are normally used to further concentrate the brine or the reject from RO plants.

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Courtesy: Ion Exchange (India) Ltd

salts in a small portion of the waste stream and to return the clean permeate to the process. As a result, a much smaller volume (the reject stream from RO) will require evaporation, thus reducing capital investment and energy consumption in the evaporators. Various equipment/technologies available in this area include evaporators, dryers, strippers, etc. Each has a specific role to play in complementing and competing with each other.

Evaporators & dryers Evaporation plays an important role in the recovery and reuse of water from industrial wastewater streams. While membrane-based technologies such as RO are often used to recover water for recyclereuse, these technologies are limited to treatment of dilute wastewater streams. Once the dissolved salt concentration in wastewater reaches a few per cent by weight, evaporation must be employed to achieve further recovery of water and concentration of salts. Evaporators are used for recovering water as condensate steam with 50 ppm TDS and producing solid waste after crystallisation of concentrated waste stream. Both evaporators and dryers deal with removal of water from the feed through supply of heat. However, the operating cost/kg of water evaporated is high in any type of dryer as compared to any type of evaporator. Therefore, an evaporator is the first choice over a dryer. Thermal evaporators: These convert the water component in RO reject to clean vapour for release as condensate. On an average, 85 to 90 per cent


WATER MANAGEMENT

of the original waste is evaporated leaving only a small residue requiring disposal. Evaporation has proven to be an excellent solution for disposal of RO reject and discharge problems. Forced circulation evaporators: These are used if boiling of the product on the heating surfaces is to be avoided due to the fouling characteristics of the product, or to avoid crystallisation. The flow velocity in the tubes must be high, and high-capacity pumps are required in this case. Falling film evaporators: These can be operated with very low temperature differences between the heating media and the boiling liquid, and they also have short product contact times, typically just a few seconds per pass. These are more economical in terms of capital and energy costs as compared to forced circulation evaporators. However, since laminar flow range is employed, they may be susceptible to scaling when operating at higher concentration of brine. Multiple-effect evaporators: In this evaporator, water is boiled in a sequence of vessels, each held at a lower pressure than the previous one. Because the boiling point of water decreases as pressure decreases, the vapour boiled off in one vessel can be used to heat the water in the next vessel, and only the first vessel (at the highest pressure) requires an external source of heat such as fresh steam. While in theory, evaporators may be built with an arbitrarily large number of stages, evaporators with more than four stages are rarely practical except in systems where the liquor is the desired product such as in chemical recovery systems where up to seven effects are used. A stripper is needed prior to an evaporator if the feed has high amounts of volatile organic solvents or gases like ammonia, etc.

Clean processing With stricter enforcement by pollution control boards and greater awareness among users, an increasing number of progressive companies are adopting the ZLD concept. ZLD systems provide numerous economic and environmental advantages for plant managers – water is recycled and reused, with savings on the cost and treatment of raw water. Since all water is reclaimed, no effluent is discharged from the plant, minimising the environmental impact of industrial activity.

Uday Muley is Division Manager in the Technology Department at Ion Exchange (India) Ltd.

Sonal Joglekar is Senior Officer in the Technology Department at Ion Exchange (India) Ltd. For details, contact Nishant Thakre on email: nishant.thakre@ionexchange.co.in

May 2011 | Chemical World

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INDUSTRY VOICE Green Chemistry

th ANNIVERSARY

“Green Chemistry should be the essence of all developments in emerging economies” Laurent Labatut is the CEO of DRT, a global leader in the development of rosin and turpentine extracted from pine resin. Focussing his strategy on the company’s industrial presence abroad, he established companies in China and India. In conversation with Rakesh Rao, he emphasises on eco-friendly technologies and Green Chemistry.

Sustainable development

Impact of global regulations

Generally speaking, sustainable chemistry is a key element to our industry. Since many years, DRT has been committed to build a sustainable chemistry and more precisely to focus its development based on responsible chemistry. Responsible chemistry means promoting use of sustainable resources, developing process & synthesis reducing impact on the environment, and increasing treatment & recycling of waste.

Global regulations have a positive impact on chemical manufacturers. These have made processing more secure and products safe for customers/users. It has also forced chemical industries to adopt similar standards all over the world.

Eco-friendly processing Green Chemistry and its twelve well-known principles are important to our industry. In DRT, we specially focus on the use of renewable resources. These principles of Green Chemistry enable strong development of our industry, and in the meantime, significantly reduce the impact on our environment.

DRT’s experience in Green Chemistry Green Chemistry is natural and extremely useful to achieve sustainability. DRT has taken a number of steps to make its processes and business more eco-friendly. With our Indian partner, Anthea Aromatics, DRT has developed synthetic piperonal, which can help preserve the natural forest of sassafras worldwide by offering an alternative for fragrance & flavour (F&F) industry. In France, we use biomass coming from our byproducts for our energy production. We promote green transportation by using, whenever possible, railway-truck combination in Europe to reduce the CO2 impact. We have developed new tool, Life Cycle Analysis, to reduce the effect of our processes on the environment.

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Significance of Green Chemistry for emerging economies India and China, which are experiencing high investments in chemical sector, will have to play an important role for the better future of the chemicals industry. All initiatives to promote Green Chemistry in these countries will have to be supported and should be essence of all development. Moreover, without this commitment to establish a chemical industry based on Green Chemistry, these emerging countries will not be able to positively resolve the challenges they are facing to feed the growth of their markets.

Waste management Efficient waste management and sustainability go hand-in-hand. Reduction, control and efficient disposable system of waste are a must to build a modern chemistry. Waste management need to be integrated from the beginning of all development (very early in the chain of development) to limit its impact industrially.

Opportunities for DRT DRT is already in the forefront when it comes to Green Chemistry. Of course, we will pursue our development in this direction and continue to promote processes & products enhancing Green Chemistry principles.


Process Redesign INDUSTRY VOICE

“Process designing can lead to waste minimisation� K Nandakumar is the Founder and Managing Director of the Chemtrols Group, which is one of the leading solution providers in process analytics, automation, environment monitoring, etc. In conversation with Mahua Roy, Nandakumar talks about the measures to be taken by the industry to reduce waste and develop a responsible image.

Waste minimisation In the chemical industry, the main stages include feed preparation followed by processing, which includes the reaction dynamics. This is followed by separation and finally purification. In each step, waste minimisation is of utmost importance. This brings in the practical approach of process redesign. This is also leading to more investments in R&D by the chemical industry.

Advantage process redesigning Sustainability exposes the dynamics of ecology, economy and profitability. The biggest challenge faced by the chemical industry today is pertaining to the way this industry is perceived. It has been traditionally blamed for having a negative impact on the environment. This can be resolved by way of process redesigning. For instance, caustic chlorine industry is a prime sector in the chemical industry. Earlier, this industry was based on technology of mercury cell. As we know, mercury is highly hazardous and this technology consumes high energy as well. Nowadays, the industry has moved over to membrane process, thereby eliminating the use of mercury completely. Thus, lesser energy is consumed per tonne of caustic chlorine produced. Similarly, in the petrochemical industry, linear alkyl benzene is used for alkylation process. Around 10-15 years back, in this process, hydrofluoric acid (HF) was used, which is corrosive. Besides, for its use, monel material had to be used, which is expensive. After process redesigning, today HF beds are used, thus ruling out use of monel. This reduces risk and brings down the cost as well.

Hurdles faced by pollution solution providers Our country, being a developing nation, has its regulations in an evolving process. We cannot expect India to adopt stringent regulations like those in the developed countries. Our focus is now on inclusive growth and making basic necessities available to the populace. However, the practical problems as of now include the state of pollution boards. The government has the data but not enough resources and manpower to carry out remedial measures & combat strategies. Also, there are various agencies, which are in charge of pollution control. Each has their own set of regulations, which, most of the times, is not uniform. Also, our laws are not strict enough. So as a solution provider, we have created products, but unfortunately, there are not many takers.

Initiatives of CII and Chemtrols CII is taking active measures towards awareness and education of SMEs, which are being exposed to environmental hazards put forth by climate change and pollution. They are being trained and oriented about Clean Development Mechanism (CDM) and various waste minimisation programmes. At Chemtrols, we have set up an R&D unit for the development of biodegradable base oils for lubricants. These are of importance to ships that travel through international waters to adhere to the pollution norms of the country they travel to. Lubricants derived from fossil fuels are unacceptable. Thus, the biodegradable base oils segment foresees an optimistic market in India.

May 2011 | Chemical World

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INDUSTRY VOICE Green Solution

“IT tools can be used to attain sustainability� Pradeep Kumar Gupta is the Practice Head, Ports, EPC, Manufacturing, IFS Solutions India. In an interview with Mahua Roy, he talks about the incorporation of IT towards attaining sustainability in the chemical industry.

Emphasis on sustainability So far, the focus has been on reducing air & water pollution, and mitigating risks to environment as well as human health. However, with changing global economy and environmental pressures, the attention is shifting towards the sustainable use of energy, water, raw materials & land, environmental protection, human health and quality of life, among others. Chemical industry, due to its very nature, needs to give more emphasis to sustainability and Green Chemistry.

Green solutions in offing Release of toxic, reactive or flammable liquids or gases is the biggest challenge being faced by the chemical industry as it has an adverse impact on life forms and environment. The issues can be categorised as inside plant matters and those emerging from pollution exiting the plant and impact of the chemical products. The field of Green Chemistry deals with synthesis, processing and use of chemicals that reduce risks to humans and the environment. For example, generally chlorine is used to disinfect water. Chlorine oxidises the pathogens to the point of killing them but simultaneously forms harmful chlorinated organic compounds. So, what is the alternative? Should ozone be used as an alternative to chlorine? Take the example of aluminium trichloride, a catalyst used in the production of analgesic ibuprofen by the Friedel-Craft alkylation reaction, decays fast and generates acidic gaseous emissions. Should hydrogen fluoride be used as a substitute catalyst, which does not decay and can be easily separated from the product mix and recycled back into the process? Introduction of Green Chemistry has a

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goal to develop and institute alternative syntheses for chemicals in order to prevent environmental pollution and reduce risks to humans.

IT technologies as a green tool End-of-pipe pollution control strategies suggesting chemical, biological and physical treatment of terminal streams were the environmental solutions until recently. It certainly resulted in reducing the toxicity and volume of undesirable pollutants in industrial discharges. However, these strategies are more focussed on the symptoms rather than on the real causes. These also lack cost-effectiveness and sustainability. IT tools like agile ERP applications having eco-footprints and powerful maintenance, manufacturing and quality management systems, opens a window to search and identify the root causes & enable companies to analyse effects of simulations done by choosing alternative feedstocks, reagents, solvents, products, catalysts, packaging and processes.

Making sustainability economical Chemical, being an asset-intensive industry, timely maintenance of equipment and piping is extremely important to run the plant at the maximum capacity and with maximum uptime. IT solutions like SCADA, coupled with an agile ERP application having extended enterprise asset management functions, give chemical industry immense power to adopt latest maintenance philosophies. By carefully leveraging the advantages of these maintenance philosophies in a right mix can lead to savings in terms of reduction in downtime up to 45 per cent, elimination of breakdowns up to 75 per cent, resulting in lower maintenance cost up to 30 per cent.


NEW PROJECT

th ANNIVERSARY

EPC market

Next destination India! With the progress in various sectors of industry, including chemicals, the mode of contracting has also undergone a vast change. The concept of Engineering, Procurement & Construction (EPC) contracts has been developed as a result of a strong need for timely and within budget completion of projects. Here is an overview of EPC contracting and management services for project implementation, with India set to be a future destination for this due to its rapidly growing industrial sectors.

P D Samudra

E

PC contracts is a common term used in the industry today. In the chemical sector, a decade ago, engineering consultants were predominantly employed for providing EPC Management (EPCM) services. At that time, few EPC/Lump Sum Turn Key (EPC/LSTK) projects were conceived in the chemical sector. The practice was to use the EPC/LSTK contracting mode for chemical plants with low investments and mainly for ‘unit operations’ and ‘storage terminals’ for the chemical processes. Earlier, in the EPCM mode of contracting, the major portion of risks was shouldered

Growth facilitators In the last 10-15 years, the growth of the EPC business in India in the chemicals sector has been contributed by the following types of organisations: o

Technology-driven engineering companies

o

Engineering consultancy companies

o

Large fabrication/construction companies

o

Recent large chemical companies, having their own engineering set-ups

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by the project owners themselves. When the need for implementation of ‘time-bound’ and ‘within-the-budget’ projects with single point responsibility was felt, the EPC-LSTK project implementation mode became stronger. The need was especially influenced by financial institutions and the managements of large-scale public sector organisations. Thus, the EPC/LSTK mode of contracting started becoming popular in the chemical sector since the late 90s.

Innovative contracting Today, India has about 30 or more organisations that either offer EPCM services or EPC/LSTK mode of contracting to serve the chemicals industry. Some companies offer both types of business models. A majority of such EPC companies are international engineering companies, having already set up operations in India. The risks associated with the project implementation with respect to ‘cost’ and ‘time’ over-runs, quality and performance of equipment are shifted to EPC contractor from the owners, in case of EPC/LSTK implementation. The project, planning and construction management are vital for the EPC-LSTK contractor, as these involve managing several suppliers and subcontractors,


NEW PROJECT

apart from their own engineering & technical experts. Therefore, specialised man-management skills become more important to ensure customer satisfaction throughout project implementation. Proper assessment of the competence and quality of products/services of suppliers and subcontractors is another important aspect to focus on. Moreover, innovative ideas help ensure that project costs stay within the budget and the project is completed on the agreed time schedule without sacrificing the quality and performance of the plant. EPC companies are also focussing on continuous upgradation and strengthening of engineering and IT skills & capabilities. A majority of EPC/LSTK projects are based on a well-defined front end engineering package prepared by the technology suppliers and the Project Management Consultants (PMCs) appointed by the owners. This package ensures proper evaluation of the bids

from EPC contractors, while leaving no scope for errors in terms of supplies and services of the EPC contractors. Today, a number of chemical companies in India have their own ideas for the mode of project implementation (EPC or EPCM) depending on the organisational philosophy. Looking at the current paucity of experienced engineers and skilled/unskilled labour in the country, there is a growing tendency to opt for EPC-LSTK mode of implementation.

An attractive business destination Having sensed some excellent opportunities for investments in chemical, power and infrastructure projects, a number of international EPC contractors are entering India, thus posing a higher level of competition for existing EPC companies. This development is of high interest to the Indian chemical industry, as a healthy competition is essential to ensure a ‘win-win’ situation. However,

a careful analysis of the track record and competence of EPC companies as well as proper prequalification criteria need to be employed by project owners to ensure that projects do not run into difficulties during implementation. Considering the anticipated growth in India in sectors such as oil & gas, fertilisers, refineries, petrochemicals and specialty chemicals, the EPC business for the chemical sector in India is expected to grow at a rapid pace in this decade and become an attractive destination for EPC business. P D Samudra is Executive Director - Sales and Member of the Board at Uhde India Pvt Ltd. He has been actively engaged for 36 years in business development in the field of petrochemicals, refinery, inorganic & organic processes/technologies and EPC LSTK/EPCM services in Indian and overseas markets. Email: pd.samudra@thyssenkrupp.com

May 2011 | Chemical World

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INDUSTRY VOICE Emerging Markets

th ANNIVERSARY

“India has world-class expertise and the cost of EPC services is comparatively low” Jean Beaudoin is Executive Vice President, Chemicals and Petroleum, SNC-Lavalin. With over 20 years of experience in consulting engineering, he specialises in the pharmaceutical, industrial, and chemicals & petrochemical sectors. He provides insights into the emerging EPC sector in an interview with Prasenjit Chakraborty.

High on demand The EPC sector has excellent future prospects. There is a high demand worldwide for new and refurbished infrastructure of all types – roads, bridges, mass transit systems, water treatment facilities, power plants, healthcare facilities – the list is endless. Energy requirements across the world are continuously growing and, with the economy recovering, commodities are in high demand as well. SNC-Lavalin has a unique advantage in that it can not only execute full EPC contracts in its sectors of activity, it can also own, operate & maintain all types of infrastructure and provide project financing. In other words, we can add more value to the classic EPC contract and function as a one-stop-shop for governments looking for public-private partnerships.

Special chemical projects We execute a number of projects in the chemical sector; however, an area of focus for us lies in the potash and nitrogen-based fertiliser industries, namely, urea. These two sectors are experiencing unprecedented growth due to high overseas demand.

Focus on sustainable development

In the long term

Sustainable development is a top priority for us. We incorporate sustainability in all our projects from the design phase through to construction and decommissioning. For example, in infrastructure, we have experts in Leadership in Energy & Environmental Leadership (LEED) and green buildings; our power group is active in the green energy sector, particularly thermal & geothermal power; and our mining team has extensive expertise in mine reclamation and cleanup. In addition, we have had a dedicated Environment Division since the 1970s.

We expect 2011 to be another good year for SNC-Lavalin, in terms of good potential in all sectors. We are well-diversified by sector and geographic region, which gives us a diverse revenue base. If business is slow in one sector or geographic region, it will be offset by higher activity in other areas. SNC-Lavalin is celebrating its 100 th anniversary in 2011, which is probably the best indication of our staying power. Our resilience in a competitive, fluctuating and ever-changing market stems from a balance of experience and innovation. We learn from experience but, being engineers, we are aware of the importance of adapting, innovating and continuously moving forward.

India has come a long way India has world-class expertise and the cost of EPC services is comparatively low. In an

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increasingly global market, it was only a matter of time before companies started to focus on India for high-quality, low-cost technical and professional services. SNC-Lavalin has been working in India since the 1960s and we have built a strong local presence there. Our offices in New Delhi, Mumbai and Uttar Pradesh work along with our other offices worldwide and overseas clients to provide top-notch services at competitive prices.

Chemical World | May 2011


Sustainable Projects INDUSTRY VOICE

“India’s growing middle class is the primary driver for the increasing EPC demand” Pete Primm is Vice President, Global Chemicals Business, at CH2M HILL. A mechanical engineer, he has over 35 years of experience in the chemicals business. In conversation with Prasenjit Chakraborty, he talks about the future prospects and emerging markets for the EPC sector.

On market revival

Special focus on chemicals

Overall, the prospects for the EPC sector appears promising. It is witnessing signs of revival from the global recession and attain traction in most markets. Also, the rising global demand for goods and raw materials will have a positive impact on the EPC sector. Specifically, the industry is witnessing much of retrofit, efficiency and environmental upgrades. In addition to increased global demand, a number of projects are being driven by the rising concerns about possible regulation changes that impact the way plants are operated.

CH2M HILL is extensively involved in all major chemical sectors and we provide engineering, construction, construction management, procurement, programme management and consulting for our chemicals clients. In the past few years, we have focussed specifically on chemicals and fuels that are produced from renewable feedstock. These types of project constitute a growing and dynamic market. One of the several drivers for the focus on renewable feedstocks is the increased demand, and new requirements, for renewable sources of energy and chemicals.

Sustainability is the focus

Future scope

CH2M HILL is recognised as a global leader in providing sustainable and environmentfriendly development. Specifically, we help our chemicals clients in developing increased energy efficiency in new or existing facilities for reducing costs and greenhouse gas emissions. We also guide them to adopt best practices for an environmentally responsible development. Besides, we help our clients with grassroots facilities that are driven specifically by the sustainable markets. Namely, projects aimed at producing chemicals from renewable feedstock.

The EPC sector is moving ahead in a robust manner and appears to continue growing in the near future. There is a growing demand in the marketplace for chemical products, and thus firms are releasing capital, hiring and planning for future growth & development. Three major factors are driving this demand. First, the impact of the severe economic meltdown has passed and demand has returned. Second, population growth, especially in emerging markets, will create a huge demand for chemicals products. Finally, a number of companies, having put off capital projects for strategic reasons, are now in a real need for new facilities in both existing & growing markets, as well as increasing efficiencies and capacities at existing plants. For CH2M HILL, we are positive about EPC in the chemicals sector and are expecting firm growth for the remainder of 2011 and through 2012.

EPC market in India India’s growing middle class is the primary driver for the increasing EPC demand. As the country continues to prosper, with an annual growth rate that may surpass China in the next decade, the EPC sector will continue to expand due to the growing economic segment.

May 2011 | Chemical World

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INDUSTRY VOICE Green EPC

“The future is hopeful, once sustainability becomes a way of life for corporate India� Vinayak Pai is the Director - Operations at Aker Solutions. In an interview with Mahua Roy, he talks about the arenas EPC can unleash to help the chemical industry in the era of sustainability.

Green EPC for chemical industry In the ultra-competitive EPC sector, the current tendency is to equate green with the colour of money. This is something, which I feel should change soon, especially in the refinery sector, with evolving statutory requirements making reduction of environmental impact a priority nowadays. This should see an increased focus on sustainability, and EPC tenders having more mandates on the use of green concepts will only help matters further.

Facets of EPC Though there are various technologies that support green measures, they all lead back to the basic principles of controlling the carbon footprint and reducing the use as well as recycling of water. At Aker Solutions, our effort is to control the total CO2 content across the project phases. Carbon capture & sequestration has also been a key focus area for Aker Solutions since the 1990s. One of the important innovations in this area is the injection of CO2 into the seabed for Enhanced Oil Recovery (EOR). The other focus area is towards adopting the LEED (Leadership in Energy and Environmental Design) concept for industrial projects, which till now was applied mainly in commercial establishments. We have already used LEED in one of our projects, and the results have been outstanding.

Challenges before the industry The main challenge is to convince owners to increase CAPEX spend in the interest of sustainability. We have done LEED certification studies for capital projects, but the need is to drive harder to actually implement the concepts.

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Apart from the environmental benefits, they have been proven to improve working environment and even reduce OPEX. Having said that, I believe, organisations should take lead in updating their knowledge on all the new products & developments available in the industry. This will enable to guide customers in the appropriate direction.

Adoption of green technology The rapid rate of technological development precludes a vision spanning 100 years. However, in the short term, I see some large corporations targeting substantial reduction in their carbon footprint. We need to attract more investments in R&D that result in innovation. Overall, the future is hopeful, once sustainability becomes a way of life for corporate India from being a trend just for large companies. The next wave of innovation will hopefully see rapid advancements in unconventional energy sources. The power of solar energy has not been fully harnessed, and wave energy conversion is still at a nascent stage. In future, we will also see large wind farms located on jackets in the open sea.

Green mantra by Aker Solutions At Aker Solutions, we conduct our operations through efficient use of materials and energy, with minimum waste & damage to the environment. We also design our projects in such a manner that there is no undue environmental impact, and operations are conducted safely and efficiently, thereby conserving energy and natural resources. We accomplish this through innovative solutions and technologies, and a constant focus on environment.


TRANSPORTATION

th ANNIVERSARY

Green logistics

The way to go Green logistics has rightfully gained considerable attention in recent times. The logistics industry has also been witnessing numerous initiatives that are aimed at curbing environmental damage. Implementing green logistics can help companies in various ways, including increasing the bottom line of a company. Courtesy: Damco

Amol Mirajgaonkar

T

oday, the awareness has increased towards the global climate changes and significant contribution of transportation & handling equipment to global carbon emissions (almost up to 11 per cent). This has facilitated the thought process to reduce emissions while also effectively managing the supply chain to ensure optimal financial returns. There is clearly an opportunity for companies & logistics service providers to come together and redesign their entire supply chain activities so as to minimise their negative contribution towards the environment, and hence the society as a whole. When it comes to the chemicals industry, in particular, one cannot deny the fact that the nature of this industry, ie, dealing with potentially dangerous chemicals, makes it important to

On a green path R In the past few years, leading supply chain and freight forwarders

have included the environmental component in their business R Green logistics in chemical industry can significantly reduce the

carbon footprint while transporting chemicals from one destination to another R Several initiatives for green logistics could be taken without making

large investments R It is essential for logistics service providers to disseminate right and

useful information for increasing adoption of greener practices

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adopt green logistics and significantly reduce the carbon footprint while transporting chemicals. This assumes even more importance in an emerging economy like India where resources are scarce and the acceptance of green logistics, although at a nascent stage, is bound to grow at various levels in the future.

Increasing focus on environment Earlier, companies were optimising the supply chains only in terms of cost and services. However, in the past few years, leading supply chain and freight forwarders have included the environmental component in this equation – in the form of carbon emissions. Companies can adopt several initiatives to create a greener supply chain without incurring large investments. Thus, cost savings associated with becoming greener and more efficient have a direct impact on the bottom line, resulting in a win-win situation for the company as well as the environment. Further, as global regulations in carbon markets hit the transportation industry and carbon emissions are tagged with a price, there will be an increased focus on being greener and reducing emissions. Therefore, green logistics is a trend to stay poised for growth. It will stay not only due to consumer and government pressures but, most importantly, because it will result in efficiencies in the entire supply chain by increasing utilisation, using more efficient modes of transportation and storage.


TRANSPORTATION

Contribution to company’s bottom line There is, however, still a long way to go for the global community to develop a strategy to deal with the challenges in its entirety, but each business/sector in its own capacity has started doing its bit. Most of the global chemical companies that Damco has dealt with have been focussing on deploying green logistics. As part of the ‘Supply Chain Development’ endeavour, Damco strives to map the existing supply chain of the customers and also suggest ways & means for further improvements. Checking carbon emissions and trying to keep it at low levels have become an inherent part of this process. Contrary to a widespread belief in the industry that carbon emission reduction would necessitate allocation of increased or alternative resources resulting in rise in costs, there has been an observation that green logistics actually facilitates evident cost savings. The typical methodology adopted generally consists of optimising transport modes, increasing utilisations and reducing waste in the supply chain. Further, companies can earn carbon credits from green logistics innovations; several companies overseas are presently utilising these options. These credits hold monetary value and can be traded in financial markets or converted to money, which ultimately adds to the company’s bottom line. Hence, green logistics provides a robust platform for companies to simultaneously perform both activities – contribute and earn.

Need for awareness Stakeholders in the chemical as well as logistics industry in India need more awareness about the various initiatives they can take to make their supply chain green. This is perhaps due to the relatively less percolated information in the Indian market about green methodologies and their impact on business savings. Going forward, this

knowledge gap must be proactively plugged by logistics service providers in order to disseminate correct and useful information, which would result in increased adoption of greener practices. The chemical industry, in particular, poses a higher risk of exposure to potential danger caused to the environment. Historically, there have

Green logistics provides a robust platform for companies to simultaneously perform both activities – contribute and earn. been numerous instances where absence of adequate care has resulted in grave situations for people and environment in general. In today’s world, there is a larger focus on the safety and environment-friendly approach from leaders in the chemical industry, both from within and as part of compliance to strict mechanisms put forth by governing bodies across the world. The emissions and wastes are thoroughly regulated and most often strictly audited, thereby leaving little room for negligence. Supply chain, as with most other industries, for the chemical industry

has not been developed with a similar focus. Chemical companies view logistics purely in terms of monetary cost incurred due to the expenses on transportation, material handling, packaging, etc. A specific approach to measure carbon emission resulting from various activities is yet to find a practical and easy application. This development is partially also tied up with the overall industry approach, since the logistics resources used by the chemical industry are normally the same as that by any other industry. For example, transportation and warehousing activities must be optimised to regulate emissions effectively.

Green outlook Considering the nature of the chemical industry, it is imperative for logistics companies dealing with chemicals to implement green logistics in their day-to-day operations. The sooner the implementation, the greater will be the benefit. Amol Mirajgaonkar is the Head - Chemical Vertical at Damco India. He has been associated with A P Moller Group’s forwarding arm for 10 years. In his current role, he has been instrumental in setting up special logistics solutions for chemical companies manufacturing & trading, from and to India. Email: amol.mirajgaonkar@damco.com

May 2011 | Chemical World

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SOURCING STRATEGIES

th ANNIVERSARY

Efficient procurement methods

Cornerstone for a successful enterprise General procurement management conditions in 2010 were different from the scenario prior to 2000. Factors such as exchange rates, logistics costs, trade restrictions, production capacities and the regional risk distribution of supplier portfolio have triggered the dramatic change during this period. Courtesy: WACKER Chemie AG

Dr Andreas Gocke

T

he ‘old’ world of procurement and its more or less stable playing field no longer exist. The impact of globalisation has been more profound in the field of procurement than in virtually any other functional area. According to a study conducted by Boston Consulting Group (BCG) in 2010, the current cost advantages of procuring goods and services from countries where labour cost

Traits of effective supply chain strategy BCG predicts that excellence in procurement management will show the following traits: R

Understanding and using global supply markets

R

Assessment and structuring along the entire supply chain, from tier-x suppliers to the final customer

R

Procurement strategies will dovetail with business strategies

R

Procurement will be regularly brought on board at an early stage (beginning with development and/or as soon as demand arises)

R

Procurement will utilise (business, process & technical) leverage to optimise purchasing, even in cases where leverage has not been achieved through purchasing alone

R

Procurement employees will possess international, cross-functional project management expertise

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is low, ie, low-cost countries (LCCs), remain significant – up to 15 per cent for plastics, up to 40 per cent for tools and 10-25 per cent for machine components purchased on a landedcost basis. Low-cost effects of this magnitude, however, will get eroded. Former low-cost countries continue to manufacture products for which labour cost makes up a relatively small fraction of the costs. Production technologies, however, are coming up to keep pace with higher Western standards, and the portion of base costs represented by raw materials is growing at an even higher rate. Previously neglected factors, such as environmental requirements, quality costs, response speed and supply chain costs, are making increasingly significant contributions to overall costs.

Spiralling costs While fluctuations in LCC currencies vis-àvis import currencies historically weighed at 20 per cent, procurement departments must now allow for a spread of up to 45 per cent. Shipping costs too are increasingly becoming volatile, having gone up by a factor of six over the last four years alone – and then fallen again (Baltic Dry Index). Even the presumed benefits of lower labour costs in LCCs cannot simply


SOURCING STRATEGIES

continue unabated: a simulation showing the development of nominal labour costs (in $) as compared to productivity development revealed that the wage advantage from production in Russia as opposed to Western Europe will have been exhausted by 2025. The situation is similar in the Western hemisphere, where labour cost advantages in a country such as Brazil will be only minor compared to that in the US by about 2030.

Rapid shift in cost & production A comparison covering only six years (2006-2012) clearly illustrates the enormous importance of production capacities in the Middle East and Asia. The proportion of Middle Eastern and other Asian plants producing Methylene Diphenyl Di-isocyanate (MDI) is projected to grow from less than 30 per cent to over 40 per cent, in just six years. The corresponding figures for plants producing polypropylene and polycarbonate are expected to be 11 and 13 per cent, respectively. This indicates that the ability of a chemical company to compete will increasingly depend on the ability of its procurement department to recognise and utilise these extraordinarily rapid shifts in cost positions & production capacities.

Future supply market The following describes the direction in which global supply markets will be heading over the next 10 years as well as how to work with these changes: R Regions: From a focus on China as a supply market – perhaps expanded to include Brazil, Russia, India and China (BRIC) countries – to ‘BRIC plus’, ie, countries such as Indonesia and Vietnam will become increasingly important. As part of this development, procurement departments will have to perform regular portfolio management activities for supply markets, observe the advantages

Procurement faces dramatic changes of its parameters Procurement Procurement parameters parameters

Before 2000 Before 2000

2010 andbeyond beyond 2010 and

Exchange rates

Relatively stable

Significant fluctuation

Input cost

Stable except for oil

Rising due to RDE ( Rapidly DevelopingEconomics ) demand

Logistics cost

Predictable

Significant fluctuation

Trade barriers

Declining

Potentially increasing

Demand and supply footprint

Developed markets as exporters

Developed markets as importers

Relevant supplier landscape

"Usual suspects"

"Global challengers"

Supplier stability

Predictable and stable supplier relationships

Higher volatility and risk in supplier relationships

Payments Goods

Source: The Boston Consulting Group

of individual markets more closely than before and utilise change more quickly.

The ability of a chemical company to compete will increasingly depend on the ability of its procurement department to recognise and utilise these extraordinarily rapid shifts in cost positions & production capacities.

production capacities will gain even more importance. R Risk: Risk management to date has been inconsistent when it comes to assessing LCC supply markets. This will be replaced by a proactive, comprehensive risk management strategy along the entire supply chain.

In transit In the changing scenario, an method of procurement will important role towards the of a company. To be more procurement should be an part of a company’s strategy.

efficient play an success candid, integral

R Flow of goods: East-to-West has

traditionally been the dominant direction for the flow of goods, but in future this will have to compete more with LCC goods staying within their countries of origin and with LCC goods flowing to other LCCs. Thus, Western companies will have to work harder to attract LCC suppliers. R Competitive advantages: LCC markets have traditionally competed, almost exclusively, in terms of cost. As a result, employee skills and regional proximity of

Dr Andreas Gocke is the Partner & Managing Director of Boston Consulting Group GmbH. He focusses on the fields of industrial goods (automotive, chemicals, aerospace, plant engineering) to optimise their procurement spectrum (category management, best-cost country sourcing, supplier integration), and on organisational and personnel structures in procurement (structures, processes, competency management). Email: gocke.andreas@bcg.com

May 2011 | Chemical World

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INDUSTRY VOICE Chemical Logistics

th ANNIVERSARY

“Customers often ask whether it makes sense to spend extra to go green” Pavithran M Kallada is Managing Director of BDP International, India. He has 11 years experience in senior management capacities in the logistics industry, handling integrated supply chain and freight management activities. Kallada shares his views on the chemical logistics industry with Prasenjit Chakraborty.

Green logistics in India Cost is an issue for companies when it comes to reducing their impact on the environment. In a rapidly growing economy like India, customers often ask whether it makes sense to spend extra to go green. The logistics industry is fragmented, particularly in the areas of warehousing & transportation, and competition is fierce. So the pressure is always on to cut costs, which makes it hard for many players to embrace green initiatives, even if they wanted to. Another difficulty in pursuing green logistics is the state of the nation’s infrastructure. Poor road conditions, a lack of adequate expressways and traffic bottlenecks all result in increased carbon emissions. The level of pollution could be lowered by creating expressways, transport hubs and using clean fuel applications (including CNG) in trucks.

Challenges in supply chain The main challenges constitute the state of the nation’s infrastructure and the lack of qualified & trained industry personnel. The highways are heavily congested. As mentioned earlier, there are too few expressways and transport hubs. Transport corridors are often surrounded by densely populated urban areas, which is a challenge when moving chemical products. The shortage of trained staff and the lack of clear guidelines for the transportation and storage of hazardous materials add to the logistics related problems.

Emerging trends in chemical SCM As demand for chemicals grows, so does the demand for experienced transportation companies that move chemical products safely and efficiently, and in compliance with the numerous

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international and domestic regulations. Chemical manufacturers are looking for SCM/logistics partners that have experience and expertise. Another trend is that some manufacturing companies are leasing storage facilities and dedicated transport fleets, so as to better control health, safety and environment (HSE) matters. And recently, a few warehousing facilities have been established that do meet global standards for safety.

Chemical logistics in India vis-à-vis developed world Unlike the West, India does not have earmarked chemical logistics or manufacturing hubs. In the developed world, there are clear guidelines for the transportation/storage and handling of chemicals, and they are adopted by every logistics service provider. By contrast, in India, these processes and guidelines are still not clear or certain. The developed world has invested heavily in its transport infrastructure while India’s infrastructure still has a long way to go before it meets international standards.

Ways to promote green logistics Priority should be given to damage-free handling processes, consolidated transport arrangements, and the construction of environmentfriendly warehousing & distribution facilities. There needs to be an emphasis on shared or common-user facilities such as chemical warehousing zones or transport hubs. Allowing companies to use common facility will reduce waste & duplication, optimise the utilisation of resources, and reduce carbon emissions by consolidated transport arrangements.


PLANT SAFETY

th ANNIVERSARY

Inherently safer design

A proactive approach Inherent safety is a concept that is widely used in chemical and process industries. Chemical processes and designs are increasingly being evaluated for inherent safety, where the focus is on reducing the hazard rather than the risk. Within the framework of risk management, one can include evaluations of safer alternatives and make the right decision. An inherently safe process has a low level of danger, even in situations where things could go wrong.

Dr Paul Amyotte

I

nherently Safer Design (ISD) also referred to as inherent safety is a proactive approach wherein hazards are eliminated or reduced and risks are decreased, without excessive reliance on engineered devices & procedural measures. The principles of inherent safety work in conjunction with other means of reducing risks namely, passive & active engineered safety; and procedural safety – within a framework commonly known as the hierarchy of controls

Basic principles of ISD Four basic ISD principles that have gained widespread acceptance are: R Minimisation or intensification of quantities of hazardous materials

when their use cannot be eliminated outright; or of the number of times a hazardous procedure is performed when the procedure itself is unavoidable R Substitution of a given substance with a less hazardous material;

or of a processing route with one that does not involve hazardous materials; or a hazardous procedure with one that is less hazardous R Moderation or attenuation such that hazardous materials are used in their

least hazardous forms; or less severe processing conditions are employed (such as a lower temperature, pressure or speed of rotation) R Simplification of the design of processes, processing equipment

and procedures so as to eliminate opportunities for errors

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(or the priority of controls or the safety decision hierarchy). Inherent safety, being the most effective and robust approach to risk reduction, is positioned at the top of the hierarchy. It is followed in order of decreasing effectiveness by passive engineered devices (eg, explosion relief vents), active engineered devices (eg, automatic fire suppression systems), and finally procedural safety measures (eg, ignition source control by hot-work permitting). Inherent safety is, therefore, not a standalone concept. Rather, it works through a hierarchical arrangement in concert with engineered & procedural safety to reduce risks.

Relevance of ISD ISD is not a cure for every possible hazard and every ensuing risk. Nor does the hierarchy of controls invalidate the usefulness of engineered and procedural safety measures. It is quite the opposite, the hierarchy of controls recognises the importance of engineered & procedural safety by highlighting the need for careful examination of the reliability of both mechanical devices and human actions. Inherent safety has always been acknowledged to have a ‘common sense’ nature. It is difficult, if not impossible, to argue on the concept of removing a hazard rather than accepting it and


PLANT SAFETY

dealing with its consequences. But is inherent safety common knowledge for all parties involved in the process industries – operators, engineers, designers, managers, owners, regulators, etc – not to mention members of the public? The answer to this question depends on a number of factors such as the industry sector, stakeholder group and geographic location. What is certain, however, is that more practitioners today have specific ISD knowledge and skills than their counterparts some 20, or for that matter, even 10 years ago.

Encouraging trends A more important issue to address is whether inherent safety now represents an area of common application and practice in the process industries. Though it is difficult to make the final conclusion on this, there are encouraging signs that show movement in a positive direction. There are now more inherent safety resources available, for instance the second edition of Trevor Kletz’s ‘Process Plants: A Handbook for Inherently Safer Design’; the second edition of ‘Inherently Safer Chemical Processes’ prepared by the Center for Chemical Process Safety (CCPS) of the American Institute of Chemical Engineers (AIChE). Conferences attended by industrial practitioners now routinely hold sessions devoted solely to inherently safer design. Additionally, there are several ISD training packages available including those produced by the AIChE and the UK Institution of Chemical Engineers (IChemE). Several industrial ISD success stories have been presented at these process safety symposia. The United States Chemical Safety and Hazard Investigation Board (CSB) has adopted a recent trend of identifying inherently safer alternatives in its process incident investigations. Several companies have reported the incorporation of ISD considerations in their process hazard assessments and risk analyses. An increasing number of chemical and process engineering graduates are spreading the message

of inherent safety in the industry and are looking for evidence of ISD implementation.

Hurdles to cross The challenges for further uptake of inherent safety by industry are neither new nor insurmountable. Continued emphasis on lifecycle considerations will facilitate the application of inherently safer design principles at the earliest possible stage – when they can be most effective. Tradeoffs within the suite of ISD principles, as well as the full hierarchy of safety controls, must be addressed in a manner that highlights the predominant role of inherent safety, yet does not promote inherent safety as the only (or even necessarily the preferred) solution in all scenarios. There is nothing absolute when it comes to

Inherently safer design is in essence a way of thinking that requires a cultural shift in design and operational philosophies. risk reduction; what is referred to here is inherently ‘safer’ designs, not ones that are inherently ‘safe’. The business case and overall competitive advantage of inherently safer designs must be made convincingly.

reap the benefits of inherent safety through thoughtful consideration of ISD principles at the conceptual design stage or even earlier. No matter where in the world process development occurs, or whether the regime is regulatory or based on voluntary compliance, there is one inescapable truth about inherent safety. Inherently safer design is in essence a way of thinking that requires a cultural shift in design and operational philosophies. This is because if questions concerning inventory reduction & alternative process routes and equipment are not asked, the innovative solutions required for safer chemical production will not be researched and implemented. Inherent safety has a crucial role to play when it comes to chemical industry and the like. References 1. Kletz, T and Amyotte, P, ‘Process Plants: A Handbook for Inherently Safer Design’, second edition, CRC Press (Taylor & Francis Group), Boca Raton, FL (2010) 2. Center for Chemical Process Safety, ‘Inherently Safer Chemical Processes’, second edition, John Wiley & Sons, Inc., Hoboken, NJ (2009) 3. Khan, FI and Amyotte, PR, ‘How to Make Inherently Safer Practice a Reality’, Canadian Journal of Chemical Engineering, 81 (1), 2-16 (2003) 4. Hendershot, DC, ‘A Summary of Inherently Safer Technology’, Process Safety Progress, 29 (4), 389-392 (2010)

On a safe foundation For some, the way forward lies in ISD regulations. In North America, the states of New Jersey and California (specifically Contra Costa County) are often cited in this regard. Other practitioners advocate a voluntary, best practice approach. Some proponents of ISD feel that significant advances in usage will be achieved by focussing on potential enhancements in plant security in addition to safety. Developing countries, with the current boom in construction of new chemical plants, would seem well-positioned to

Dr Paul Amyotte is a Professor of Chemical Engineering in the Department of Process Engineering and Applied Science, and the C D Howe Chair in Engineering, at Dalhousie University, Halifax, Canada. His teaching, research and practice interests are in the areas of process safety, inherently safer design and dust explosion risk reduction. He consults industry, government and academia in these and related areas, and has published or presented approximately 180 papers in the field of industrial safety. Email: paul.amyotte@dal.ca

May 2011 | Chemical World

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OCCUPATIONAL HEALTH & SAFETY

th ANNIVERSARY

New-age gas detection technologies

Armed for combating unseen hazards The presence of combustible, flammable, toxic gases & vapours pose a potential threat to people & equipment in chemical plants. But now the companies need not fret and fume over occupational hazards like before, because of the advent of several gas detection technologies that add flexibility to operations and offer advanced options for ensuring occupational & environmental safety.

State-of-the-art gas detection equipment Courtesy: Cole-Parmer

Beth Dumey and Ken Kreiman

E

mployee safety hazards may be invisible, yet cause as much damage as an approaching cyclone. Some possible dangers include hazardous gases, vapours & combustibles that exist in the workplace, including carbon monoxide, ammonia, hydrogen fluoride, carbon dioxide and hydrogen cyanide, among others. These potentially toxic contaminants must be monitored to protect workers from adverse health reactions and maintain Occupational Safety and Health Administration (OSHA) compliances. OSHA standards regulate minimum levels of Permissible Exposure Limits (PELs) and require periodic monitoring of employee exposure. If

Selection criteria for appropriate gas detection device R Determine whether personal monitoring or area monitoring is needed R Assess the format of device that best suits the environment measured R Select the relevant type within this format R Opt for any advanced functionality that will increase efficiency R Compare price to budget

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readings regularly fall below these limits for hazardous gases, users may find that periodic monitoring is sufficient. Areas known for higher concentrations of gases, fumes or vapours may demand continuous monitoring.

Need for hazard detection technologies Accurate air monitoring equipment and good documentation are necessary to effectively detect hazardous levels of gases present in the workplace and ensure safety. To this end, new gas detection technologies have entered into the market, offering more flexibility and advanced options. Several formats are available, including badges, tubes, single- and multi-gas detectors, photoionisation detectors & combination types. Here are some of the advantages of such devices. Detection badges: Gas detection badges can be used for both personal and area monitoring of hazardous chemicals. Worn by employees, the badges track exposure as workers move around the facility throughout the day. These provide a time-weighted average (TWA) for a specific gas. Badges are available in two types. One type changes colour to indicate the presence of a specific gas. Colour-change indicators are


OCCUPATIONAL HEALTH & SAFETY

designed for a single chemical and one-time use, but have the advantage of showing immediate results. Another badge type is sent to a laboratory for analysis after use. These badges can be used to sample a broader array of chemicals with higher accuracy at lower levels of concentration. Gas detection badges are lightweight, easy to use and nonintrusive. They require no additional equipment to operate, besides minimal training. Because badges are single-use, they need to be replaced regularly, and users must manually calculate their TWA. Yet, it needs to be noted that employee exposure occurs by the time the badge records it. Additionally, colour-changing badges require some interpretation, which may lead to inaccurate readings. Detection tubes: Tubes offer instant measurements of a wide variety of gases and vapours. Economical and easy to read, these are efficient for most industrial and laboratory environments that use chemicals. Each tube can be cross-sensitive to other gases, which may affect its readings. Users can select from two types of gas detection tubes: shortterm detection for area monitoring or diffusion tubes for personal monitoring. Short-term detection tubes employ a hand-operated pump for a quick sampling of gas levels. Depending on the tube, measurements can take 10 seconds to 15 minutes. Tubes contain a direct-reading scale for spot checking a variety of contaminants and can safely perform field testing & sampling of ambient air & soil gas on hazardous-waste sites. However, these tubes are also meant for single-use and offer readings valid only at the exact spot tested at the time the area was sampled. Diffusion tubes allow gas to enter the tube through diffusion, react with the reagent and produce a colour change with exposure levels indicated by markings on the tube. These record longer-term measurements and offer TWA readings. Because diffusion tubes are designed for personal monitoring,

pinpointing the gas source may be difficult. With workers moving through a facility, as the tube builds up to a readable level, they may need to retrace their steps to identify the potentially toxic location. Single- and multi-gas detectors: Either worn by a worker or used as a handheld device, the compact single- and multi-gas detectors display immediate, continuous readings of gas concentrations. Visible and/or audible alarms alert users to high toxic gas concentrations or low oxygen levels. Single- and multi-gas monitors are typically higher in price than badges or tubes, but also offer longer life spans. Users need to learn how to operate these units, and they do require calibration.

Multi-gas detectors are a better choice for sensing several gases at once, and typically include a sensor for combustibles. Single-gas detectors target a predetermined gas only, such as carbon monoxide, hydrogen sulfide or oxygen. This device delivers precision without the flexibility of the multi-gas model. The single-gas monitor is the most efficient when the potential gas is limited to one area. Advanced versions calculate for Short-Term Exposure Limit (STEL) and TWA. Multi-gas detectors are a better choice for sensing several gases at once, and typically include a sensor for combustibles. Multi-gas detectors are used in confined spaces where gas concentrations build quickly, as well as for search-and-rescue missions, postinspection fire safety, etc. Some units have data logging capabilities for later download to a computer for recordkeeping purposes. Photo-ionisation detectors (PID): These detectors take real-time readings

of volatile organic compounds (VOCs) and hazardous gases or vapours in parts per million (ppm), making them ideal for confined spaces (especially industrial settings) in which low levels of VOCs may be present. Their sensitivity to a broad band of VOCs eliminates the need for multiple sensors. Depending on the unit, samples can be drawn from an extended range (horizontally or vertically) allowing employees to monitor air quality from a distance. Other options may include multimode operation (for example, survey mode or hygiene mode) and data logging features. Because PIDs provide immediate VOC readings, they eliminate the time and cost involved in sending results to a laboratory for analysis. Although PIDs detect multiple air-borne hazards, they should be calibrated using the targeted gas for the most accurate results.

Combination units Some devices combine the technologies above. For example, the multigas monitor with PID offers the advantages of both types of detectors. For combination units, functionality and resourcefulness are significantly increased, and so is the cost for purchasing these units. The safety of workplace and environment is of utmost priority to all industries and efforts are made to meet this goal. In this scenario, deployment of the appropriate gas detection technologies available in the market can go a long way in preventing mishaps that lead to loss of life and property. Beth Dumey is Senior Marketing Communications Specialist at Cole-Parmer, a global leader in supplying fluid handling, general laboratory products and instrumentation to process industry.

Ken Kreiman is Product Manager at Cole-Parmer. For more information, contact on email: response@coleparmer.in

May 2011 | Chemical World

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INDUSTRY UPDATE

th ANNIVERSARY

Next-generation biofuels

Offering ‘clean’ alternatives Growing concerns for high petroleum prices, greenhouse gas (GHG) emissions, etc, have sparked the interest of most countries in renewable energy sources for producing biofuels. Various technologies to produce biofuels are available today – second-generation, thirdgeneration, etc – though the latter is still in the development stage. Considering the large biofuel requirement across the world, a combination of technologies may be the only way to meet these demands in the future.

Tomasz Kaminski

B

iofuels include fuels derived from biomass (a biological material obtained from living organisms, eg, wood, waste, etc). Today, these fuels are gaining increased attention from the public as well as the scientific community. The development of second-generation as well as third-generation biofuels has gained massive traction in the last few years. This attention is attributed to strong government subsidies and funding programmes commenced in Europe and the US. Second-generation biofuels are expected to be available on a commercial scale soon. While third-generation biofuels are still in the early stages of development, the technology faces some complex impediments. An analysis carried out by Frost & Sullivan, ‘Next-generation biofuels: Strategic portfolio management, has found that second-generation biofuels are well positioned to replace firstgeneration biofuels that are based on edible feedstock with non-edible cellulosic materials.

Economic growth requires energy Energy independence is the most prominent factor driving the development of next-generation

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biofuels. The US is the largest consumer of oil in the world, and thus shows the fastest observable growth in the biofuels sector in the country. End-users in the US consume nearly 21 million barrels of oil per day, while only 8.5 million barrels of oil are produced domestically per day. The country depends on oil imports to narrow the gap between demand and supply. Thus, next-generation biofuels will help countries, such as the US, in reducing dependence on imported resources. Besides resolving issues of oil shortage, next-generation biofuels will help in scaling down GHG emissions. Second-generation biofuels will enable a reduction of more than 80 per cent GHG emission in the transportation sector. This will help address GHG emissions until technologies such as Electric Vehicles (EV) or Fuel Cell Vehicles (FCV) are available for replacing internal combustion or diesel engine in this sector. Third-generation algae-based biofuels will not only mitigate GHG emissions while burning, but also capture carbon dioxide from power plants or even directly from the atmosphere, thus further reducing emissions. In the future, even if electric vehicles are introduced on a mass scale that completely replace today’s cars with


INDUSTRY UPDATE

combustion engine, the algae industry would still be valuable and needed. This is because one tonne of algae biomass produces 300 kg biofuel. The remaining 700 kg represents valuable proteins and chemicals, which can be used for food purposes, such as fish feed. The valuable chemicals can also be used for production of green plastics, green detergents, polymers and cleaners that are biodegradable, non-toxic and can be sold at a lesser price than the currently available petroleum-based products. Moreover, algae-based thirdgeneration biofuels will find numerous applications in the future as well, which seems quite difficult in the case of second-generation biofuels that are based on cellulosic materials. Reactors used for algae cultivation can be set on areas that are not suitable for cultivation of any plants, and this will not cause land degradation. Wild microalgae living in natural water reservoirs can provide material for production of green crude oil. These organisms can also help in wastewater treatment since organic water impurities provide good nourishment to microalgae.

Processing bottlenecks Some problems need to be resolved before next-generation biofuels can enter the commercial market. Biomass feedstock remains a challenge, as it incurs high production costs. Optimising the technology for processing various feedstocks for biofuel production (second-generation) can overcome this issue. Improvements in production can help bring down costs. Moreover, better use of valuable by products is necessary to ramp up revenues. Another, but important, challenge faced by second-generation biofuels is more efficient land use. A higher ratio of feedstock yields per sq km is required for improving economic attractiveness of second-generation biofuels refineries. In addition, biomaterial that can be used as feedstock for production of second-

Types of biofuels Biofuels can be divided into following three categories based on the plant source from which they are derived: R

First-generation (conventional): These are obtained from sugar, starch, vegetable oil, etc

R Second-generation:

These

are

derived

from

cellulosic

materials

(non-food crops) R

Third-generation: These are produced from algae (a group of simple, autotrophic organisms)

generation biofuels are often grown on the fertile land, which can also be used for cultivating edible plants. In such a case, mass introduction of second-generation biofuels can have an indirect adverse impact on food prices in the future. Governments in various countries are providing aid and avidly supporting the development of commercial biofuel refineries. The European Union is committed to the 20/20/20 decree – enhance energy efficiency by 20 per cent, decrease GHG emission by 20 per cent and ensure that 20 per cent of all energy generation comes from renewables by 2020. This opens up huge opportunities for the biofuels market, as currently a viable alternative for biofuel is lacking in the transportation sector.

Gaining momentum To ensure market progression, secondgeneration and third-generation biofuel developers must focus on production cost reduction and making improvements in production pathways. Observations reveal that the thermochemical conversion pathway is at the forefront of research activity in the second-generation biofuels sector. In third-generation biofuels, closed Photobioreactors (PBRs) are expected to be a leading technology for algae cultivation. Besides second-generation and third-generation biofuels, technologies that use micro-organisms, waste carbon dioxide, non-drinkable water and solar energy (without any feedstock

supply) can be used for production of completely fungible renewable fuels. These could be used in the existing internal combustion engines or diesel engines without making any changes in their structure. Such a technology, when introduced on a large scale, has the potential for becoming significant to the transportation sector, but faces problems of fossil fuel shortage as well as GHG emissions. Cooperation with research institutions such as universities could deliver a positive momentum for the biofuels market. Developers must make optimal use of financial assistance from governments. Moreover, biofuel production facilities should be located in rural areas to boost rural development.

Future lies in co-existence It is rather not possible that a single technology (second-generation, thirdgeneration or renewable fuel) will take the lead and completely discredit other methods of biofuel production. As the world demand for fuel is extremely large, it is possible that one technology will be more attractive or economically viable than another, but most likely, all of them will co-exist in the market. Tomasz Kaminski is Research Analyst - Renewable Energy at Frost & Sullivan. With two Master of Science degrees in renewable energy from the University of Iceland and electric engineering from Warsaw University of Technology, he has extensive experience in market research. For details, contact on email: britni.myers@frost.com

May 2011 | Chemical World

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MANAGEMENT MANTRAS

th ANNIVERSARY

Managing carbon footprints

A must to gain competitive advantage Commercial enterprises, which proactively assess & quantify the environmental impact of business operations & resource consumption through the measurement of carbon dioxide and other greenhouse gas emissions as well as implement strategies to reduce carbon footprints, are expected to attract investments and build a competitive advantage & a sustainable business.

Suresh Lulla

A

ccording to Chris Goodall, Author, Environmentalist, “Food production is now so energy-intensive that more carbon is emitted, providing a person with enough calories to walk to the shops, than a car would emit over the same distance.” Virtually every human activity adds certain amount of carbon emissions into the earth’s atmosphere. Technically, carbon footprint stands for a certain amount of greenhouse gas (GHG) emissions – associated with human production or consumption activities – that have an impact on climate and environment. For example, watching a plasma television for three hours on a daily basis contributes to 250 kg of carbon each year. Studies at the Stockholm Environment Institute (SEI) reported that carbon footprints during the Christmas season, including food, travel, lighting and gifts, amounted to 650 kg per person – an amount equivalent to the weight of ‘one thousand Christmas puddings’ per individual! In recent times, there has been much public debate and concerns raised over the subject of

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global warming and carbon emissions. Being fully aware that allowing emissions to continue at the current rate could induce dramatic changes in the global climate system, carbon footprint calculations are in strong demand. Individuals and businesses, the world over, are adopting policies to reduce their own carbon footprint as well as those of the products they represent. Innumerable approaches to measure a carbon footprint have been proposed, ranging from basic online calculators to sophisticated lifecycle analysis or input-output-based methods. But some researchers point out that there is no clearcut analysis on how to quantify it.

Measurement methodologies Globally, a carbon footprint is classified as a sub-set of all data covered under Life Cycle Assessment (LCA) – an internationally standardised method used for evaluation of environmental burdens and resources consumed along the lifecycle of products. Since a carbon footprint reflects all lifecycle impacts of goods and services used, it is said to be composed of direct (or primary) and indirect (or secondary) emissions. The carbon


MANAGEMENT MANTRAS

Tata Chemicals: Setting up a new benchmark India’s largest player in the chemical industry, Tata Chemicals Ltd (TCL), worked on multiple fronts to help maintain the earth’s fragile ecological balance and is still remembered for its major role in fighting the war against global warming. The process for mapping the company’s carbon footprint across all its units began in 2007. The first step was to quantify CO2 equivalent emissions across manufacturing locations and measure the size & scope of its carbon footprint. With the help of Ernst & Young, this exercise was done by tracking emissions from manufacturing units including captive power plants, logistics operations and staff travel. As a result, the Babrala plant in Uttar Pradesh managed to improve energy efficiency by 10 per cent and CO2 emissions came down by 5 per cent. At Mithapur in Gujarat, the company switched to masonry cement for its buildings, bringing down carbon emissions significantly. Several new products, including the low-cost household water purifier, Tata Swach, and biofuel feedstock developed as part of its overall strategy for LIFE (Living, Industry and Farm Essentials), are helping the company extend its policy of enduring care for the environment. At the end of the entire exercise, it has been found that TCL’s overall carbon footprint per metric tonne of product matched that of leading chemical corporations and the total emissions fell below that of large-scale chemical producers. The Babrala urea manufacturing unit is now considered as a benchmark in energy efficiency and carbon footprint across the world. footprint of an organisation can be measured by going through the entire upstream product manufacturing cycle, right from the sourcing of raw materials down to the finished product. In the process, non-manufacturing tasks such as management, administration, sales and several others that contribute to the footprint must also be taken into account so as to include the emissions from transportation, distribution and final disposal to the ultimate consumer. The total carbon thus emitted into the environment will be computed as the footprint of the product, process or person under consideration. The task of calculating carbon footprints can be approached methodologically from two different directions, both of which strive to capture a full Life Cycle Analysis/ Assessment (LCA): R Bottom-up, based on Process Analysis (PA) R Top-down, based on Environmental Input-Output (EIO) Analysis Process analysis: PA is a bottom-up method, which has been developed to understand the environmental impacts of individual products from cradle to grave.

This methodology suffers from a system boundary problem and if appropriate system boundaries are not properly identified, it could lead to truncation errors. PA-based LCAs run into further difficulties when carbon footprints need to be measured for larger entities such as government, households or particular industrial sectors. Often the results are patchy since this procedure requires the use of information from different databases that are usually not consistent. Environmental input-output analysis: EIO analysis provides an alternative top-down approach to measuring carbon footprints. Here, economic accounts that provide a picture of all economic activities at the mesolevel (sector) can be combined with consistent environmental account data to establish carbon footprint estimates in a comprehensive and robust way. In this method, all higher order impacts are taken into account and the whole economic system is set as the boundary. The environmental input-output analysis is not entirely suitable for assessing microsystems such as products or processes because it assumes homogeneity of

prices, outputs and their carbon emissions at the sector level. The biggest advantage of the input-output- based approach is that it requires much lesser time and manpower. It is ideal for establishing carbon footprints in macro and mesosystems, especially for industrial sectors, individual businesses, larger product groups, households, government, the average citizen or an average member of a particular socio-economic group. Nevertheless, the best option for a detailed, yet comprehensive and robust analysis is combining the strengths of both the aforementioned methods through a hybrid approach that integrates the PA and input-output methodologies. Such an approach allows the preservation of detail and accuracy in lower order stages, while higher-order requirements are covered by the input-output part of the model. Of course, much improved models can be expected over the next few years.

Planning for low-carbon economy Measuring carbon footprints is vital for organisations as well as individuals. Companies can use an understanding of their environmental performance to identify opportunities in managing carbon and other environmental impacts. In the long run, only those organisations and nations that are more environmentally efficient than their sector peers will be well positioned to attract investment and marketshare, given the emphasis and importance of shifting to a lowcarbon economy. Companies that can demonstrate energy and carbon efficiency in their sectors, with limited exposure to carbon costs, stand to gain competitive advantage as carbon prices rise. Suresh Lulla is the Managing Director of Qimpro Consultants Pvt Ltd, Founder of the BestPrax Club, and Chairman of the IMC Quality Awards Committee. In 2005, he was awarded the distinguished Alumnus Award by IIT - Bombay, in recognition of his outstanding achievements in quality management consultancy. Email: consultancy@qimpro.com

May 2011 | Chemical World

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th ANNIVERSARY

EVENTS CALENDAR

National

RUDRAPUR: Uttarakhand, Sept 23-26, 2011, Gandhi Park AHMEDABAD: Gujarat, Nov 14-17, 2011, Gujarat University Exhibition Hall PUNE: Maharashtra, Nov 18-21, 2011, Auto Cluster Exhibition Centre CHENNAI : Tamil Nadu, Dec 8-11, 2011, Chennai Trade Centre INDORE: Madhya Pradesh, Jan 6-9, 2012, Poddar Plaza, Nr Gandhi Hall AURANGABAD: Maharashtra, Feb 17-20, 2012, Garware Stadium India’s premier industrial trade fair on products and technologies related to Machine Tools, Hydraulics & Pneumatics, Process Machinery & Equipment, Automation Instrumentation, Packaging & Auxiliaries, IT Products, Electrical & Electronics, Material Handling and Safety Equipment.

For details Infomedia 18 Ltd Ruby House, 1st Floor, J K Sawant Marg, Dadar (W), Mumbai 400 028. • Tel: +91 98195 52270 • Fax: +91 022-3003 4499 • Email: engexpo@infomedia18.in

Eastern Plastic & Rubber Expo Exhibition offering a comprehensive coverage for the plastics & rubber industry; June 16-19, 2011; at Milan Mela Trade Complex, Kolkata For details contact: VNB International D-435, Clover Centre 7-Moledina Road Camp Pune 411 001 Tel: 020-4006 8318/3291 1450 Fax: 020-2605 4870

IORS 2011 Symposium and international exhibition for oil & gas industry; September 08-09, 2011; at Taj Lands End, Mumbai For details contact: Oil Asia Publications Pvt Ltd 530, Laxmi Plaza 5th Floor, Laxmi Industrial Estate New Link Road, Andheri (West) Mumbai 400 053 Tel: 022-4050 4900, Fax: 022-2636 7676 Email: oilasia@vsnl.com

Automation 2011 International exhibition & conference dedicated to process automation, instrumentation & controls, factory automation, robotics, power plant automation, drives automation, bus & wireless technology, building automation, hydraulics and pneumatics; September 20-23, 2011; at Bombay Exhibition Centre, Mumbai For details contact: IED Communications Ltd 64 Mahendra Chambers D N Road, Mumbai 400 001 Tel: 022-2207 9567/3370

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Chemical World | May 2011

Fax: 022-2207 4516 Email: ied@vsnl.in

Analytica-Anacon 2011

Email: info@ipvs.in

Enviro Tech India 2011 Expo on environment-friendly technologies and systems including solar panels, hybrid solutions, wastewater management, effluent treatment plants and solutions; November 14-27, 2011; at Pragati Maidan, New Delhi For details contact: ITPO (India Trade Promotion Organisation) Pragati Maidan New Delhi 110 001 Tel: 011-2337 1725 Fax: 011-2337 8464 Email: rkmaggo@itpo-online.com

SUGARASIA 2011

International trade fair and conference for analytical instrumentation, laboratory technology and services; October 12-14, 2011; in Mumbai

Exhibition showcasing cane sugar and downstream products such as distillation of molasses & ethanol, blending and power generation; November 21-25, 2011; at Pragati Maidan, New Delhi

For details contact: Imag Am Messesee 2, 81829 Munich, Germany Tel: +49 (0) 89 949 22 121 Fax: +49 (0) 89 949 22 350 Email: info@imag.de

For details contact: Nexgen Exhibitions Pvt Ltd 1201 Pragati Tower, 26 Rajendra Place New Delhi 110 008 Tel: 011-4153 6990, Fax: 011-4153 6991 Email: nexgenservices@gmail.com

India Chem Gujarat 2011

CPhI INDIA 2011

The event will focus on specialty chemicals, fine chemicals, agrochemicals, colorants, dyes & dye intermediates with special stress on environment and green technology; October 13-15, 2011; at Mahatma Mandir, Gandhinagar

International exhibition on pharmaceutical ingredients and intermediates; December 01-03, 2011; at NSE Exhibition Complex, Mumbai

For details contact: FICCI Mumbai 33/B, Krisnamai Building Pochakanwala Road, Worli Mumbai 400 030 Tel: 022-2496 8000, 2496 6633/39 Fax: 022-2496 6631/32 Email: vishal.ganju@ficci.com

IPVS 2011 Industrial trade fair for pumps, valves and systems; November 11-13, 2011; at the Gujarat University Hall, Ahmedabad, Gujarat For details contact: Orbitz Exhibitions Pvt Ltd 101, Navyug Industrial Estate Sewri (W), Mumbai 400 015 Tel: 022-2410 2801/02, Fax: 022-2410 2805

For details contact: CMP India (UBM India Pvt Ltd) Sagar Tech Plaza, A, 615-617, 6th Floor SakiNaka Junction Andheri-Kurla Road Andheri (E), Mumbai 400 072 Tel: 022-6612 2600, Fax: 022-6612 2626 Email: deepalim@ubmindia.com

PLASTINDIA 2012 International plastics exhibition & conference; February 01-06, 2012; at Pragati Maidan, New Delhi For details contact: Plastindia Foundation 401, Landmark B, Suren Road Off Andheri Kurla Road Andheri (East), Mumbai 400 093 Tel: 022-2683 2911-14 Fax: 022- 2684 5861 Email: plastindia@vsnl.com


EVENTS CALENDAR

International Oil and Gas Asia 2011

PEPP 2011

Asian oil, gas and petrochemical engineering exhibition; June 01-03, 2011; at Kuala Lumpur Convention Centre, Malaysia

A business forum dedicated to polyethylene & polypropylene (PEPP) products, technologies and market; September 20-22, 2011; at Swiss么tel Zurich, Switzerland

For details contact: Allworld Exhibitions 12th Floor, Westminster Tower 3 Albert Embankment, London The UK Tel: +44 (0)20 7840 2100 Fax: +44 (0)20 7840 2111 Email: info@oesallworld.com

For details contact: Maack Business Services Moosacherstrasse 14 CH-8804 Au/Zurich Switzerland Tel: +41 1 781 30 40, Fax: +41 1 781 15 69 Email: mbspolymer@aol.com

Chemspec Europe 2011

OIL & GAS LIBYA 2011

An exhibition for performance & fine chemicals and organic intermediates; June 15-16, 2011; at Palexpo, Geneva, Switzerland For details contact: Dmg World Media (UK) Ltd Westgate House 120/130 Station Road Redhill, Surrey RH1 1ET, The UK Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855475 Email: webmaster@ca.dmgworldmedia.com

Dye+Chem Bangladesh 2011 Exhibition focussing on all kinds of dyes and fine & specialty chemicals; July 20-23, 2011, at Bangabandhu International Conference Centre, Dhaka, Bangladesh For details contact: CEMS Bangladesh House # 119, Unit- A3 Road-1, Banani Block-F Dhaka 1213, Bangladesh Tel: +880 2 8812713 Fax: +880 2 9894573

CO2 Expo 2011

Exhibition dedicated to the climate and greenhouse emissions; September 14-16, 2011; at Fiera di Roma, Rome, Italy For details contact: Artenergy Publishing srl Via Antonio Gramsci, 57 20032 Cormano (MI), Italy Tel: +39 0266306866 Fax: +39 0266305510 Email: artenergy@zeroemission.eu

International exhibition and conference on petroleum exploration, production, refining and petrochemicals; October 17-20, 2011, Tripoli International Fairground, Tripoli For details contact: Dar Alarab Tel: +218 21 333 9141, Fax: +218 21 333 9142 Email: exhibitions@alarab.co.uk

ChemMash-Pumps 2011

21-24, 2011; at Riyadh International Exhibition Centre, Saudi Arabia For details contact: Riyadh Exhibitions Co Ltd Olaya Road Postfach P O Box 56010 SA - 11554 Riyadh, Saudi Arabia Tel: +966 1 454 1448 Fax: +966 1 454 4846 Email: esales@recexpo.com

CIA 2011 An event focussing on latest progress on process control and automation in chemicals, petroleum/energy etc; November 22-25, 2011; at Suntec, Singapore For details contact: Singapore Exhibition Services Pte Ltd No. 1 Jalan Kilang Timor #09-02 Pacific Tech Centre Singapore 159303 Tel: +65 62336638 Tel: +65 62336633 Email: events@sesallworld.com

A trade fair on chemical engineering and pumps; October 24-27, 2011; at Expocentre Krasnaya Presnya Fairgrounds, Moscow

Chemspec Middle East 2011

For details contact: ZAO Expocentr 1A Sokolnicheski Val Moscow 123100, Russia Tel: +7 (495) 255 37 23/33 Fax: +7 (495) 205 80 55 Email: centr@expocentr.ru

INCHEM Tokyo 2011

For details contact: Dmg World Media (UK) Ltd Westgate House 120/130 Station Road Redhill, Surrey RH1 1ET The UK Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855475 Email: webmaster@ca.dmgworldmedia.com

Trade fair showing latest developments in chemical engineering; November 16-18, 2011; at Tokyo International Exhibition Center, Japan

Chemical Process Plant and Machinery Middle East 2011

For details contact: Japan Management Association (JMA) 3-1-22, Shibakoen Minato-ku, Tokyo 105, Japan Tel: +81 (0)3 3434 0093 Fax: +81 (0)3 3434 8076 Email: convention@jma.or.jp

Saudi Petrochem 2011 International exhibition for chemicals and chemical technology industry; November

Exhibition for performance and fine chemicals; November 28-29, 2011; at Dubai World Trade Centre, UAE

Exhibition and seminar for the chemical, petrochemical, chemical process technology and corrosion control industries; December 07-08, 2011; at Dubai World Trade Centre, UAE For details contact: International Expo-Consults LLC PO Box 50006, Dubai, UAE Tel: +971 (4) 343 5777 Fax: +971 (4) 343 6115 Email: iec@emirates.net.ae

The information published in this section is as per the details furnished by the respective organiser. In any case, it does not represent the views of Chemical World

May 2011 | Chemical World

95


PRODUCT UPDATE

th ANNIVERSARY

Centrifuge

Gas - liquid reactor

United Engineering Enterprises offers full lid opening centrifuges, which conforms to GMP standards for active pharmaceutical ingredients, herbal extracts, flavours, colours, chemicals and allied process industries. These centrifuges are of four-point suspension type in stainless steel construction. The entire body can be lifted & opened hydraulically. Thus, the basket and drain platform are exposed, facilitating easy & quick cleaning. The body is hydraulically lowered into the closed position and is clamped to the lower portion of the casing by means of quick clamps. These centrifuges are most suitable for manufacturing facilities that require frequent product changeover. The centrifuge is available in various designs depending on cake characteristics and customer requirements, viz, standard top discharge, top discharge with bag lifting arrangement, bottom discharge with/without scrapper.

Dipesh Engineering Works offers gasliquid reactor, with highly efficient impellers for gas liquid reactions. It is suitable for reactions such as hydrogenation, oxidation, ethoxylation, phosgenation, chlorination, bromination, sulphonation and fluorination. During rotation of the impeller, a vacuum is created at the tip due to venture-action. The vacuum overcomes the liquid head. Fresh /unreacted gases/vapour from the vessel upper crest (ie above the liquid level) recirculate into the liquid/slurry through the hollow shaft. Gas flow rates are not dependent on the sparging rate. Higher gas flow rates and finer bubbles sizes impart a high gas-liquid interfacial area. A unique flow pattern provides desired movement of the catalyst and excellent contact of the gases with the catalyst or solids. The capacity ranges from 50-1,00,000 litre and the temperature ranges from 100-3500 C.

United Engineering Enterprises Mumbai - Maharashtra Tel: 022-2308 3990, Fax: 022-2308 9445 Email: uenggent@gmail.com

Dipesh Engineering Works Mumbai - Maharashtra Tel: 022-2674 3719 / 729, Fax: 022-2674 3507 Email: sales@dipeshengg.net

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Chemical World | May 2011


PRODUCT UPDATE

Differential pressure transducer Katlax Enterprises (Controller & Instrumentation Group) offers Differential Pressure Transducer (DPT) that measures pressure differences between two points and gives proportional analogue output (0 to 10V or 4-20 mA). It has unsurpassed performance due to CMOS technology, offset and hysteresis free, it has excellent accuracy and reproducibility even below 10 Pa. It is fully calibrated and temperature compensated and is not sensitive to the mounting orientation, the sensor continuously monitors differential pressure between two ports. The integrated circuit converts differential pressure to electrical signal (0-10V or 4-20mA). The optional micro-controller based circuit is available for future upgradation to connect with SCADA on MODBUS protocol, the conditioning/control circuit can be supplied in enclosure (IP-66). This device can communicate on different communication protocol ie MODBUS, RS232 and RS485, etc. It is available with various measuring ranges start from -0.5 mbar to 100 mbar. These devices are available without display and also with LCD display. Katlax Enterprises Pvt Ltd Gandhinagar - Gujarat Tel: 02764-286 784, Fax: 02764–286 793 Mob: 097245 06614 Email: info@katlax.com

May 2011 | Chemical World

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PRODUCT UPDATE

Industrial vacuum cleaner Acmevac Sales offers industrial vacuum cleaners from Swiss Vac. The range covers industrial vacuum cleaner suitable for light, medium and heavy duty. Powerful suction makes these vacuum cleaners suitable for wet and dry applications. The collection tanks are made of stainless steel and the castor is mounted for mobility. Trolleys are provided for the heavier models. The trolleys have a special tipping arrangement for emptying the container without lifting it. It also has bypass motors/turbines, which do not need special care. The larger models feature an exclusive triple filter system for proper filtration and for protecting the suction unit. The accessories include a set of nozzles for effective dust, dirt and wet pick up. Acmevac Sales Pvt Ltd Mumbai - Maharashtra Tel: 022-2837 5837 Fax: 022-2836 4977 Mob: 092233 88105 Email: acmevac@vsnl.com

Plug valve Supremo Line & Control offers plug valve; these valves are cylindrical or conically-tapered plugs, which can be rotated inside the valve body in order to control flow in the valve. The plugs in plug valve have one or more hollow passageways lined sideways through the plug. Due to this, the fluid can flow through the plug when the valve is open. It is also known as cock or stop-cock valves, and is one of the most widely used valves for both on/off and throttling services. The design is simple; the body comprise mainly three parts: body, cover and plug. The plug is cylindrical, tapered or generally is a cone-shaped device that can be raised or lowered within the seat to maintain, restrict or completely shut off the flow. The valve is opened by rotation, with the plug itself being the only element capable of movement. Supremo Line & Control Ahmedabad - Gujarat Tel: 079-2220 5282 Fax: 079-2220 5181 Mob: 097245 05282 Email: supremoproduct@gmail.com

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Chemical World | May 2011


PRODUCT UPDATE

PFA lined valve D i p - F l o n Engineering & Co offers perfluoroalkoxy (PFA) lined valves. For many chemical plants, linings made of PFA have been used as an alternative to exotic alloy, expensive metal for valves, pumps, control valves, etc. PFA is an injectable type of thermoplastic, which is processed in pressure sintering process. PFA’s success is due to several higher permeation resistances combined with high chemical resistance for most of the chemicals used in industry. The temperature resistance lies from -60 to 200 c (-75 to 400 f). PFA has generally much lower permeation rates than PTFE with the same wall thickness, but it has the same chemical and thermal resistance properties. Dip-Flon Engineering & Co Ahmedabad - Gujarat Tel: 079-2562 4003 Fax: 079-2562 5665 Email: dipflon@satyam.net.in

May 2011 | Chemical World

99


PRODUCT UPDATE

Turbo rotary dryer

Ride-on floor sweeper

Alpha Process Engineers offers turbo rotary dryer manufactured by ALPEN. As the name suggests, it operates in a batch mode, this dryer reduces the drying time significantly by about 15 per cent as compared to the venuleth drying method. It utilises fluidising technique to expose the wet particles onto the surface to quicken the evaporation of the moisture present. Complete drying system is offered, which include solvent recovery. Granular/pasty wet materials can be handled. Agitator shaft and blades too can be heated for an increased heat-transfer and for quicker drying. Mainly it finds application in pharmaceuticals, bio-drugs, dyestuffs, dye intermediates, organic chemicals, pesticides and solvent recovery.

Vaccum Technology India offers ride-on floor sweeper, which is assimilated with the latest European technology. The sweepers can be battery operated or diesel/petrol engine operated. Features include: ecological design, noiseless operation, strong body and powerful suction. It can collect dust in just one pass and reject it at any place. They are offered with scrubbing width of 700 mm to 900 mm, cleaning speed up to 5,500 sq m per hour and the dirt collection capacity is up to 70 litre.

Alpha Process Engineers Chennai - Tamil Nadu Tel: 044-2811 1351 Fax: 044-2811 2371 Email: apeepa@vsnl.com

Dear Reader, ‘Chemical World’ solicits original, well-written, application-oriented, unpublished articles that reflect your valuable experience and expertise in the chemical process industry. You can send us Technical Articles, Case Studies and Product Write-ups. The length of the article should not exceed 3000 words, while that of a product write-up should not exceed 200 words. The articles should preferably reach us in soft copy (either E-mail or a CD). The text should be in MS Word format and images in 300 DPI resolution & JPG format. The final decision regarding the selection and publication of the articles shall rest solely with ‘Chemical World’. Authors whose articles are published will receive a

Vacuum Technology (India) Ltd Mumbai - Maharashtra Tel: 022-2837 5837 Fax: 022-2836 4977 Email: acmevac@vsnl.com

The information published in this section is as per the details furnished by the respective manufacturer/ distributor. In any case, it does not represent the views of Chemical World

A n i nv

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complimentary copy of that particular issue and an honorarium cheque. Published by Infomedia 18 Ltd, ‘Chemical World’ is the leading monthly magazine exclusively meant for producers and user fraternities of the chemical process industry (CPI). Well supported by a national readership of over 80,000 and our strong network of 26 branch offices across India, this magazine reaches out to key decision makers among the Indian CPI. Moreover, it offers a broader platform facilitating effective interaction among several fraternities of these industries by

enabling them in reaching out to their prospective buyers & sellers through better trade contacts and more business opportunities. So get going and rush your articles, write-ups, etc… Thanking you, Yours sincerely,

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Product

Pg. No.

Air-cooled heat exchanger.............. 13 Air-cooled steam condenser ................. 13 Alu-cera polymer .............. BIC Aluma coat ...................... BIC Aluminium oxide ceramic composite ... BIC Analytical instrumentation .................... 45 Autoclave gasket .................................. 37 Ball check valve ............................... 63 Ball valve ............................... 63,97 Ball valves-teflon lined ............................ 5 Banking services ................................... 23 Bellows & dip-pipes ................................ 5 Bend..................................................... 97 Blower.................................................. 71 Braided house ...................................... 37 Brake motor ........................................... 9 Bush ..................................................... 63 Butterfly valve........................ 63,97 Butterfly valves-teflon lined..................... 5 Cable............................................. 9,37 Centrifuge ............................................ 96 Ceramic adhesive cement .................... BIC Ceramic electrical heater part .............. BIC Ceramic grinding media ...................... BIC Chain pulley block ................................ 98 Check valves-teflon lined ........................ 5 Chemical process pump........................ 41 Chemical pump .................................... 98 Clean steam product ............................ BC COD analyser.......................................... 6 Columns & chemistries ......................... 45 Conical screw dryer ................................ 3 Control instrumentation ....................... BC Cooling tower ...................................... 13 Cord ..................................................... 37 Corona treater sleeves .......................... 37 Crane ................................................... 98 Crane duty motor................................... 9 Custom assemblies ............................... 83 Diaphragm vacuum pumps and compressor .............................. 65 Diaphragm valve.................... 63,97 Differential pressure transducer ............ 97 Drawer magnet .................................... 97 Drum type magnetic separator ............. 97 Dry vacuum pump................................ 99 Empower ......................................... 45 End cap................................................ 97 EOT/HOT crane ..................................... 98 Exhauster.............................................. 71 Exhibition - Engineering Expo ............... 34 FBD gasket....................................... 37 FEP/PFA/PVDF lined ............................... 63 Filter cock............................................. 97 Filter press ............................................ 11 Financial services .................................. 23 Finishing machine................................. 97 Fitting................................................... 63 Flame proof hoist ................................. 98 Flange motor.......................................... 9 Flat high tension single-twin igniting electrodes ............................... BIC Flow indicator ...................................... 97 Foot mounting motor............................. 9

Sl. No. 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123

Product

Pg. No.

Foot valve............................................. 97 Gasket......................................... 37,63 Gas-liquid reactor ................................. 96 Gear box .............................................. 98 Gear pump........................................... 17 General purpose grade ......................... 96 GMP heat exchanger .............................. 3 GMP reactor ........................................... 3 Goliath crane........................................ 98 Goods lift ............................................. 98 H.R.C. fuse bodies ..........................BIC Heat exchanger ................................... FIC High intensity roller type magnetic separator............................... 97 High-alumina wear resistant ceramic tiles ........................................ BIC HPLC .................................................... 45 Hydrogenator/autoclaves ........................ 3 Impeller ........................................... 97 Industrial ceramic ................................ BIC Industrial vacuum cleaner ..................... 98 Inflatable gasket ................................... 37 Informatics ........................................... 45 Ink quality ............................................ 96 Inline magnetic separator ..................... 97 Jet black grade................................ 96 Jib crane............................................... 98 Lined valves & pipe fitting ............... 5 Long neck pipe end.............................. 97 Magnet drive pump ........................ 41 Magnetic drum pulley .......................... 97 Mechanical vacuum booster ................. 71 Mechanical vibratory feeder.................. 97 Micro milling bead .............................. BIC Mill-lining block.................................. BIC Monoblock high vacuum pump ........... 99 Monoblock pump.................. 41,98 Monorail trolley .................................... 98 Motorised chain pulley block................ 98 Motor................................... 9,41 Multi-desk vibrating screening machine ...97 Non-metallic pump ......................... 98 Non-return valve................................ 5,97 O rings............................................. 37 Oil seal ................................................. 37 Oil seal high vacuum pump.................. 99 Online B2B marketplace ...............15, 101 Over band type magnetic separator ..... 97 Peristaltic pump .............................. 77 PFA lined valve ..................................... 99 Pigments quality ................................... 96 Pipe ...................................................... 63 Plug valve ........................................ 63,98 Pole ring............................................... 97 Polypropylene filter plates..................... 11 Polypropylene process pump ................ 98 Polypropylene recess plate .................... 11 PP-recess chamber type filter press ....... 11 PP-recess chamber type fully automatic filter press............................ 11 Process heat exchanger .......................... 3 Process reactor ....................................... 3 PTFE ..................................................... 63 PTFE lined valves & pipe fitting............... 5

Sl. No. 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185

Product

PRODUCT INDEX Pg. No.

Pump .................................... 17,41,98,99 PVDF pump .......................................... 98 Re-crystallised alumina tube..........BIC Reducer ................................................ 97 Ride-on floor sweeper ........................ 100 Rod ...................................................... 63 Roots vacuum pump ............................ 99 Rotary gear pumps ............ 17,98 Rotary pump ........................................ 99 Rotary sliding vane pump ..................... 41 Rotary vacuum dryer .............................. 3 Rotary vane oil lubricated vacuum pump..... 65 Rotocone dryer ....................................... 3 Sampling valves-teflon lined ............ 5 Scalewatcher ........................................ 69 Scoop................................................... 97 Section ................................................. 37 Self priming mud pump ....................... 98 Self priming sewage pump................... 98 Sheet..............................................37, 63 Shovel .................................................. 97 Silicone carbide heat exchanger.............. 3 Silicone rubber sleeves ........................ 37 Silicone transparent platinum cured tubing ........................................ 37 Single stage monoblock vacuum pump 99 Single stage vacuum pump .................. 99 Slipon flange ........................................ 97 SME finance ......................................... 23 Spade ................................................... 97 Spherical paddle chopper dryer .............. 3 Sponge................................................. 37 Steam engineering product .................. BC Strainers-teflon lined .............................. 5 Strips.................................................... 37 Suspension magnet .............................. 97 TC gasket......................................... 37 Technical ceramic ............. BIC TEE....................................................... 97 Teflon lined valves & pipe fitting ............ 5 Thermal imaging cameras..................... 99 Transfer trolley ..................................... 98 Transparent tubing ............................... 37 Trap magnet ........................................ 97 Tri lobe roots blower ............................ 71 Tube..................................................... 63 Turbo rotary dryer .............................. 100 Turnkey project....................................... 3 Twin lobe roots blower ........................ 71 Two-stage vacuum pump ..................... 99 UPLC ................................................ 45 Vacuum pump................................. 99 Vacuum pumps & vacuum dryers ......... 39 Valve .......................................... 41,63,97 Vertical glandless pump ....................... 98 Vibration motor.................................... 97 Washer............................................. 97 Water faucet & tap part ... BIC Water soluble grade ............................. 96 Water treatment plant.......................... 57 Wire rope hoist .................................... 98 ‘Y’ type strainer............................... 97 Zirconia polycrystal ceramic ..........BIC

BC - Back Cover, BIC - Back Inside Cover, FIC - Front Inside Cover

May 2011 | Chemical World

101


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Chemical World - May 2011