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PRODUCT PROFILE

Indian markets for Epoxy resinsengineered for meeting a wide variety of industrial uses, they have tremen-dous potential for growth. Their basic characteristics as a thermosetting ma-terial, with versatility and adaptability, make them a very useful engineering material capable of replacing conven-tionally used materials with superior properties and product performance.

Traditionally, the markets for epoxy resins have been driven by demand generated primarily in areas of adhe-sives, building and civil construction, electrical insulation, printed circuit boards, and protective coatings for con-sumer durables, amongst others.

Development of composites us-ing epoxies and their potential use in advanced automobile components, aircraft manufacture and aerospace represent areas where the potential is just being scratched. Use of epoxies for advanced tooling and prototyping applications has picked up signifi-cantly.

One of the newer applications, which have already caught the imagi-nation of the public eye, is their use in modern generation windmill turbine blades. This segment is already one of the major consumers of epoxies in India.

Epoxy resins are used for about 75% of wind blades currently produced worldwide, while polyester resins ac-count for the remaining 25%. A stan-dard 1.5-MW (megawatt) wind turbine has approximately 10 tonnes of epoxy in its blades. Roughly calculated, about 100,000-tonnes of epoxy resin went into the 20,000-MW megawatts of wind energy capacity installed globally in 2007.

IntroductIon

Most common epoxy resins are produced from a reac-tion between epichlorohy-

drin (ECH) and bisphenol-A (BPA). These diglycidyl ethers of bisphenol A (DGEBPA)-type resins (and their higher molecular-weight homologues) account for about 80-85% of total worldwide consumption of epoxy resins.

By changing the ratio of ECH to BPA, resins ranging from low visco-sity liquids to high melting solids can be produced. Liquid epoxy resins can be further reacted with bisphenol-A by chain extension to form solid epoxy resins.

Epoxy resins are thermosetting polymers that cure (polymerize and crosslink) when mixed with a catalyz-ing agent or ‘hardener’. The four ma-jor classes of curing agents used are: Amines and amine derivatives; Acid anhydrides; Catalytic curing agents; and Melamine-, urea- or phenol-form-aldehyde resins.

PropertiesIn general, epoxies are known for

their excellent adhesion, chemical and heat resistance, good to excellent me-

chanical properties and very good elec-trical insulating properties. But almost any property can be modified (for ex-ample, silver-filled epoxies with good electrical conductivity are available, although epoxies are typically electri-cally insulating).

High adhesive strength and high mechanical properties are also en-hanced by high electrical insulation and good chemical resistance.

Important features of epoxy resins include:

Wide range of molecular weight (~350 - 70,000);

Wide range of curing agents; Wide ratio of curing agents (3 pbw to 100 pbw);

Curing at very low to elevated tem-peratures (-5°C to +250°C);

Brittle to tough – flexible solid post curing;

Wide range of curing time – from minutes to months; and

Serviceability at cryogenic to ele-vated temperatures (-170°C to +220°C).

ApplicationsSince epoxy resins represent a class

of industrial materials capable of being

table 1terminology & chemistry of epoxy resins

type of epoxy chemistryBasic liquid epoxy resins (BLER) ECH + BPA

Basic solid epoxy resins (BSER) BLER + BPA

Solution epoxy resins (SER) BSER + Solvent

Brominated epoxy resins BLER + TBBA (tetrabromobisphenol-A)

Epoxy blends BLER + Diluents, hardeners, etc.

Epoxy novolacs Phenol + Formaldehyde + ECH

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189Chemical Weekly August 23, 2011

resins. During 2010-11, the company produced 7,000-tons of BLER and im-ported about 2,000-tons of the same. Production of solid epoxies is estimated at 5,000-tons.

Kemrock Industries and Exports Ltd. (KIEL) is the newest manufacturer of epoxy resins in India. It is a leading producer of composite materials and as a backward integration strategy has set up plants for making various types

Global trendsIn 2010, global sales of epoxy re-

sins were 1.92-mt, which translated to an equivalent demand of 1.42-mt in terms of demand for basic liquid resins (BLER). By 2017, the market is projected to record 3.03-mt in annual sales.

The Asia-Pacific represents the fast-est growing regional market for epoxy resins, with volume sales in the region growing at a CAGR of more than 7%.

Supply into Indian markets

Domestic productionHuntsman Advanced Materials

(India) P. Ltd. (HAMIPL) is the lead-ing manufacturer of epoxy resins and systems in India. The epoxy plant at Manali, in the outskirts of Chennai, has capacity of 40,000-tpa and its es-timated production was 29,000-tons during 2010-11. Out of the 29,000-tons produced by HAMIPL, produc-tion of BLER was 22,000-tons and BSER was 7,000-tons.

Atul Ltd., part of the Lalbhai group, is the second largest producer of epoxy resins. The company has a capacity of about 12,250-tpa of all types of epoxy

of resins, including epoxy resins. The company has a total capacity of 82,500-tpa of all types of resins, out of which the capacity for epoxy resins is estimated at 15,000-tpa. Production of epoxy resins in 2010-11 is estimated at 9,000-tons.

In addition to the three companies discussed, there are around a dozen small scale units engaged in making formulations of epoxies and epoxy-based products. Some of them do make small quantities of epoxy resins for captive use. The production by the SSI units is estimated at 6,000-tons during the year 2010-11. Total production of epoxy resins in India is estimated at 56,000-tons during 2010-11.

ImportsImports have gone up from 4,124-

tons in 2002-03 to 26,000-tons in 2010-11 (estimates), a significant amount of which is BLER.

Thailand is the leading supplier of epoxy resins into India, with a 32% share of total imports in 2009-10, almost entirely from the Aditya Birla plant.

table 2Global capacity and demand for epoxy resins

capacity [ktpa] demand [kt]

Average growth [%]

2010 2000 2005 2010 2005-2010N. America 417 335 326 340 1S. America 19 20 30 39 6Europe 480 380 375 429 3Middle East 70 20 40 70 15Asia 145 29 60 90 10China & Far East 1,572 485 691 945 7Australia 0 2 4 7 15total 2,703 1,271 1,526 1,920 5

Source: Aditya Birla Chemicals (Thailand)

Fig. 1: Global demand for expoxy resins by application (2010)

Adhesives 5%

Wind energy 7%

Power coatings 7%

M/P coatings 16%

Textiles 1%

Electronics 5%

Electrical laminates 19%

Container coatings 5%

Composites 6%

Civil engg. 9%

Auto coatings 6%Others 8%

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ExportsIn 2010-11, exports are estimated

at 10,000-tons and again dominated by BLER type resin to feed formulation

plants or of solid types more economi-cal to produce in this part of the world. The USA is the leading export destina-tion, accounting for 34% of all exports.

table 4trade in epoxy resins from India

[tonnes]Imports Exports

2007-08 20,236 9,2002008-09 15,925 10,9602009-10 21,929 9,8212010-11 26,000 10,000

Assessment of Indian consumptionThe total apparent consumption

(production + imports – exports) for epoxy resins in India is estimated at about 72,000-tons. Consumption has recorded a CARG of 15.8% during the last five years. The coatings sector is the dominant user of epoxy resins in India, accounting for about 55.5% of total demand. This includes use in au-tomotive coatings, powder coatings, protective and marine coats and can & coil coatings. The other important segments are composites (including a significant contribution from wind energy) with a 30% share, followed by electrical and electronics industry (8.33%); adhesives (5%); and miscel-laneous uses (1.2%).

demand-supply balanceAt a conservative estimate of de-

mand growth at 14% per annum, de-mand is projected to rise to 138,600-tons by 2015-16. Supply of epoxy resins is expected to improve significantly with the commissioning of the Aditya Birla project at Dahej (Gujarat). This is expected to have an installed capa-city of 60,000-tpa of all types of epoxy resins – but principally BLER – and is expected to be commissioned in 2013. By 2015-16, capacity to manufacture epoxy resins is expected to reach about 123,250-tpa. At an operating rate of about 75%, which is the current oper-ating rate in the industry, total supply of epoxy resins in India will be in the range of 92,500-tons. In conclusion, the Indian epoxy markets will continue to be an overall net importer.

table 3Production of epoxy resins in India [2010-11]

Manufacturers BLEr BSEr totalHuntsman Advanced Materials (India) P. Ltd. 22,000 7,000 29,000Atul Ltd. 7,000 5,000 12,000Kemrock Industries and Exports Ltd. 9,000 9,000SSI Units (various) 6,000 6,000total 44,000 12,000 56,000

table 5consumption pattern of epoxy resins in India

End-use segments consumption [tons]

consumption [% share]

Coatings 40,000 55.55

Powder coatings (incl. coil coatings)

11,000 –

Automotive coatings 19,000 –

Industrial coatings (incl. civil & construction)

10,000 –

Composites 21,520 29.88

Electrical & electronics 6,000 8.33

Adhesives 3,600 5.00

Misc. uses 880 1.24total 72,000 100.00

table 6Major demand drivers for epoxy resins

Segment Growth driversCoatings Solvent based coatings being replaced by environ-

ment-friendly water borne & powder coatingsBoom in the automobile industry for local and export marketsBoom in the housing and construction industry and growth in infrastructure

Composites Growing demand for wind energy resulting in rising demand for wind mills

Electricals & electronics Booming electronics industryAdhesives Boom in the automobile industry for local and

export markets