A

PROJECT REPORT ON

STUDY OF CHEMICALS INDUSTRY

WITH REFERENCE TO

ADITA BIRLA CHEMICALS INDIA LTD.

Under the Supervision of:

Mr. IQBAL.I.A. KHAN

Sr.Manager (MKTG)

Submitted to: Submitted By:

MARWARI COLLEGE KANCHAN KUMAR OJHA

RANCHI

ACKNOWLEDGMENT

A single person alone can never be credited for performing any extraordinary

work successfully. It is only possible with the continuous and constant help and guidance

that they receive from others.

This report too has taken its shape because of the valuable and precious guidance

of our Professor. We are gratefully acknowledged.

I further personally feel that making of this project provided us with good

exposure to the subject of the Indian marketing sector and it was a very good learning

experience.

My sincere thanks are also

due to Mr. IQBAL I.A. KHAN, Manager (Mktg), for

their significant help extended for the successful completion of the project. I highly the

help I got from them in providing me and lot of information regarding the functioning of

this organization.

My sincere thanks are also due to Mr. SASWAT MOHAPATRA (Dy.

Manager), for their significant help extended for the successful completion of the project.

I highly the help I got from them in providing me and lot of information regarding the

functioning of this organization.

I would like to thanks Aditya Birla Chemicals India Ltd. For providing me the

opportunity boundary my summer internship under their guidance. I have learnt

about the company in 6 week . The experience will definitely help in my career.

Last but not the least great thanks to Mr. TAUSIF ALI (Marketing faculty Marwari college,Ranchi) to providing his guidance for completing the project.

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PREFACE

IN this dynamic corporate world the project work on “Study of Chlor Alkali Product”

in Aditya Birla Chemicals India Ltd.” . Provided me great exposure to real life

situation. The project training schedule for the six week gave me practical exposure

in the corporate world .

The project oriented training in Aditya Birla Chemicals India Ltd. Under the

marketing department was a unique experience for me .

Aditya Birla Chemicals India Ltd. Is one of the Chlor Alkali company of eastern

region in India. The project assigned to me is product documentation about

ABCIL is corporation with truly , dedicated and organized team under the able

leaderships of experienced & complete managers .

I tried my level best to derive comprehensive , analytical & factual information .

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STUDENT DECLARATION

I am KANCHAN KUMAR OJHA

student of MBA hereby declares that the summer training report titled

“STUDY OF CHEMICAL INDUSTRY”

with special reference to

ADITA BIRLA CHEMICALS INDIA LTD

is completed and submitted under the guidance of “ Mr. IQBAL I.A.KHAN” is my original work.

The imperial finding in this report are based on the data collected by me. This

project has submitted to “ MARWARI COLLEGE, RANCHI, for the purpose of

compliance of requirement this examination.

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INTRODUCTION

OF

ADITYA BIRLA GROUP

5

THE ADITYA BIRLA GROUP OVERVIEW:

The Aditya Birla Group is a multinational conglomerate corporation, headquarter in Mumbai, India. The Group is operating its business in different sectors by different companies like Grasim, Hindalco, Ultratech cement, Aditya Birla Nuvo, Idea cellular, Aditya Birla Retail and Aditya Birla Minacs in Canada and Chancellor of Birla Institute Of Technology and Science, Pilani., having operation in 25 countries including Thailand, Dubai, Singapore, Myanmar, Laos, Indonesia, Philippines, Egypt, China, Australia, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Bangladesh, Malaysia, Vietnam and Korea.

The Aditya Birla Group is US$ 29 billion conglomerate which gets most of its revenues from outside India. The group is a major player in all the industry sectors it operates in. the Aditya Birla Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. The origin of the group lie in the conglomerate once held by one of the India’s foremost industrialist Mr. Ghanshyam Das.

O N THE SOCIAL FRONT:

A value-based, caring corporate citizen, the Aditya Birla Group inherently believes in the trusteeship concept of management. Part of the Group's profits is ploughed back into meaningful welfare-driven initiatives that make a qualitative difference to the lives of marginalised people. Carried out under the aegis of the Aditya Birla Centre for Community Initiative and Rural Development, it is spearheaded by Smt. Rajashree Birla.

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Shri. Kumar Mangalam Birla

Chairman of the Aditya Birla Group

OverviewOf

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Indianchemical industries

The Indian chemical industry is among the established traditional sectors of the country, playing an integral role in the country’s economic development. This sector, forming part of the basic goods industry, is a critical input for industrial and agricultural development. The industry has a weight of 14% in the Index of Industrial Production (Base year 1993-94 = 100), giving an indication of the importance the sector holds in the country’s industrial growth. A robust chemical industry is a harbinger of significant economic and strategic benefits to the nation.

The chemical industry is among the most diversified industrial sectors, including basic chemicals and its products, petrochemicals, fertilisers, paints, gases, pharmaceuticals, dyes, etc. The sector covers over 70,000 commercial products, and provides the building block for many downstream industries, such as finished drugs, dyestuffs, paper, synthetic rubber, plastics, polyester, paints, pesticides, fertilisers and detergents.

The industry includes a wide variety of products, from basic chemicals to research-driven specialised products, at different levels across the industry supply chain. The fundamental nature and diversity of the industry is best understood from the fact that the industry itself is the largest consumer of its products, accounting for around 33% of total consumption.

As stated in the Annual Report of 2005-06 of the Department of Chemicals & Petrochemicals, GoI, the domestic chemical industry contributes about 17.6% to the total output in the manufacturing sector, 13-14% to total exports and 8-9% of total imports into the country. The sector has a share of 3% to the country’s total GDP. Its contribution to the revenue kitty of the Government is around 18-20%.

The domestic industry’s turnover is estimated to have crossed US$ 30 bn (Rs 1,300 bn), which is slightly over 1% of the global production. In world ranking, India stands 12th in terms of production.

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Industry structure

The chemical industry can be broadly classified into two segments – organic and inorganic chemicals. Organic chemicals cover over half of all known chemical compounds, and includes petrochemicals, drugs, cosmetics, agrochemicals, etc. Inorganic chemicals comprise of alkalis, dyes & dyestuffs. Based on a more functional classification, chemicals may be divided into basic, specialty and fine chemicals.

The basic chemicals industry forms the largest part of the chemical industry and is characterised by capital intensive, high volume, low margin products. Specialty and fine chemicals are low volume, high margin in nature. It is estimated that nearly 70% of fine chemicals produced in India are used by the pharmaceutical and agrochemical industries. Specialty chemicals include adhesives, additives, antioxidants, biocides, corrosion inhibitors, cutting fluids, dyes, lubricants, pigments, etc..

This publication largely focuses on basic chemicals, which can be further divided into alkalis, organic and inorganic chemicals, pesticides and fungicides, dyes and dyestuffs. This classification is based on the product categorisation as provided by the Department of Chemicals & Petrochemicals, GoI, for the chemical industry, and excludes drugs & pharmaceuticals and petrochemicals.

Regional concentration of the basic chemicals industry

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Though the chemical industry is spread across the country, there is relatively a high concentration along the west-coast, largely due to the proximity to raw materials and ports. Gujarat alone is estimated to contribute around 53% to the total production in the country, followed by Maharashtra, which contributes 9%.

The other major producing states include UP, TN, MP and Punjab. On the other hand, in the case of heavy chemicals segment, especially inorganic chemicals, fuel availability is a determining factor, and hence there is a concentration of these companies around power plants. Due to the regional concentration of chemical companies in certain pockets, logistics costs for the industry have tended to become a significant position of total costs.

Industry Sub-segments

The annual production of basic chemicals between FY02-FY05 has been growing at 7% per year, while consumption has been rising at 5% per annum. Imports and exports have also been rising at 7.25% and 37.6% respectively, implying that India has been a net exporter of chemicals. As per the Department of Chemicals, on the largest imports, in value terms have been for organic chemicals followed by dyes & dyestuffs, while the largest export item in value terms is also organic chemicals and chlor-alkali chemicals.

State-wise Capacity & Production of Major Chemicals(‘000 MT)

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Chlor Alkali

Chlor alkalis, the largest segment of basic chemicals produced in India, is a volume driven, low margins industry and accounted for around 72% of the total production in FY06. Caustic soda, soda ash and chlorine are products of this industry, forming the basic building block for the chemical processing industry. End-users of this segment include aluminium, dyes, pharmaceuticals, glass, newsprint, paper & boards, soaps & detergents, viscose, textiles, water treatment, pesticides industries, to name a few. The scale of margins for alkalis, to a large extent, depends upon the levels of industrial activity in sectors such as metals, textiles and pharmaceuticals.

Being a capital intensive sector, the sector is largely dominated by big players. Hence, energy costs form a key determinant of the profitability of the industry. Chlor alkali companies are largely concentrated along the west coast due to the availability of salts, a key raw material.

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The Chlor alkali segment has been witnessing a robust 6% growth in production since FY02, with production in FY06 touching an estimated 5.5 mn tonnes. This is one of the few industries where supply exceeds demand, thus having tremendous potential for exports. Since FY03, the sector has been a net exporter. Exports of chlor alkali have been growing at 52% annually since 2001, while imports are rising at close to 6% per year.

Technology has played a key role in this segment in adopting better production techniques. Around 60% of mercury-based caustic-chlorine plants in the country have shifted from mercury cell technology to membrane cell technology that has been recommended as a viable production alternative.

Performance of Chlor Alkali Chemicals(‘000 MT)

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13

14

INTRODUCTION

OF

ABCIL

INTRODUCTION

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Aditya Birla Chemicals Ltd (ABCIL), formerly known as Bihar Caustic & Chemicals Limited was incorporated in 1976 as a joint venture between the Aditya Birla Group and the Bihar State Industrial Development Corporation, primarily with the objective of catering to the caustic soda requirements of Hindalco and to contribute towards the economic development of the backward region of Palamau district in Jharkhand. Today, it is among the leading caustic soda producer in the northern and eastern region of the country. Apart from caustic soda it also produces liquid chlorine, hydrochloric acid, sodium hypochlorite, compressed hydrogen, aluminum chloride and has recently ventured into Stable Bleaching Powder. In India, about 45% of the industry depends upon the caustic soda industry as essential inputs for a host of industries like soap and detergent, aluminum, paper & newsprint, fiber, glass, tyre, chemicals & petrochemicals, pharmaceuticals, water treatment, dyes, textiles, oils, etc. However being a subsidiary of Hindalco Industries, ABCIL is having an added advantage of assured off-take of caustic soda by the parent company.It also has a hydrogen bottling facility which provides an additional stream of revenue. ABCIL is a member of several chemicals manufacturers' associations including Alkali Manufacturers Association of India (AMAI), Indian Chemical Council (ICC) and American Chemistry Council. After shifting the manufacturing process of its plant from mercury technology to the energy efficient state-of-art membrane cell technology, ABCIL has been constantly expanding it capacity albeit at slow pace. Presently it boasts of having an installed capacity of caustic soda (300 TPD), liquid chlorine (250 TPD), hydrochloric acid (125 TPD), sodium hypochlorite (4 TPD) & compressed hydrogen gas (18,25,000 Nm3/A). Secondly, as caustic soda production is power intensive, ABCIL has put up its own 30 MW coal based captive power plant due to which its energy costs are lower than its peers. For value addition and effective utilization of chlorine, the company has commissioned 12,000 TPA aluminum chloride plant in the year 2007 and17,500 TPA stable bleaching powder (SBP) plant in the year 2008. SBP is marketed under brand name of SHAKTIMAN and is basically used in textile mills for bleaching, sanitation, sewage systems, tanning process, organic synthesis and other applications. On the other hand aluminum chloride is mainly used as an input for manufacturing of aluminum apart from being used in pharmaceuticals, chemical intermediates, agrochemicals, dyestuffs and pigments, hydrocarbon resins, flavors and fragrances. Most importantly, with nearly 70% its production being taken by Hindalco, company has an assured and ready market for its product Fundamentally, ABCIL is doing quite well as for FY09 it reported 20% growth in sales to Rs8 205 cr although the PAT remained flat at Rs 46 cr. During the Sept’08 quarter the boiler of the power plant tripped due to malfunctioning of safety device hence the power cost shot up for that period which dented its bottom-line for time being. However the problem was rectified in the same quarter and post that company has been churning out good set of nos. Notably, ABCIL enjoys the highest operating margins among it peers - even better than Gujarat Alkalis andChemfab Alkali. Even for the latest June’09 quarter its top line grew by 15% to Rs 60 cr and PAT improved by 20% to Rs 16 cr. It is one of the few companies which have beenconsistently reporting an OPM of ~40% and NPM of ~25%. For FY10 it is expected to clock a turnover of Rs 240 cr and PAT of Rs 60 cr leading to an EPS of Rs 26 on equity of Rs 23.40 cr. But despite belonging to such a reputed group and having strong fundamentals like high profit margin, low debt equity ratio, huge reserves, good dividend yield, consistent growth etc, scrip has been always poorly discounted by the market men. Currently it is trading at a forward PE multiple of 2.5x times and EV/ EBIDTA of 2x times. There is also a possibility of ABCIL getting merged with Hindalco industries. But if this happens, the true value of ABCIL won’t be unlocked, as the merger ratio will more

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favorable to the parent rather than subsidiary. Still investors are recommended to buy at current levels as scrip can easily double within a year.

Company is certified with International Certifications viz:

ISO 9001: 2000 ISO 14001:2004

OHSAS 18001:1999 and

SA 8000:2001

For overall excellence, Company has been recognized with prestigious national level awards viz:

IMC Ramkrishna Bajaj National Quality Certificate of Merit for two consecutive years 2005 & 2006.

Best Responsible Care Committed Company Award by Indian Chemical Council, 2004-2005.

RC logo by Indian Chemical Council.

FICCI Award for Community Development.

Planet Award 2005-06 (Aditya Birla Group Only) For Excellence in Community Development.

Greentech Environment Excellent Gold Award - 2007.

IMC Ramkrishna Bajaj National Quality Award Trophy 2007 in the Manufacturing Category.

ORGANIZATIONAL FACT-FILE

Co-promoted in 1976 by Aditya Birla Group and BSIDC. Commercial Production started in 1984.

Became subsidiary of Hindalco (An Aditya Birla Group Co.) in 2003.

Caustic capacity increased from 160 to 265 TPD with membrane technology, energy efficient environment friendly process.

ORGANIZATIONAL INFRACTRUCTURE

ABCIL is located in the remote district of Palamau in the state of Jharkhand. However there is a full fledged well developed and planned township within the premises well equipped with Playground, Staff Club with sporting facilities etc.

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ORGANIZATIONAL OVERVIEW OF ABCIL

Aditya Birla Chemicals (India) Ltd, is a unit of Aditya Birla Group and one of the leading Chlor Alkali Company in India. The plant has been commissioned in 1984 and located at Garhwa Road, Distt. PALAMAU, State JHARKHAND,. Company’s detail product range &Installed capacity.ABC(I)L was formally inaugurated by the former Prime Minister, Late Smt.Indira Gandhi on 5th September, 1984 in presence of Late Aditya Vikaram Birla with aninitial caustic soda capacity of 100 TPD.ABC (I) L plant sets a benchmark as lowest consuming mercury caustic soda plant in India with its cell efficiency comparable to the best in the world. In spite of this fact, thecompany is setting up still more eco-friendly relationship in the organization. The current manufacturing process of the plant is latest energy efficient and environment friendly state-of-art membrane cell technology. To meet the requirement of uninterrupted power supply, company has a state-of-art 30MW Captive power plant. Company has implemented SAP R/3 and people soft system. Company has adopted WCM (World ClassManufacturing) work culture to meet the heterogeneous business challenges.

The manufacturing process of the plant is latest energy efficient and environment friendly

state-of-art Membrane Cell Technology. To meet the requirement of uninterrupted power

supply, company has a state-of-art 30 MW Captive Power Plant. Company has

implemented SAP R/3 and People Soft System.

To meet the heterogeneous business challenges, company has adopted WCM (World Class Management) work culture. Further organization has adopted 40 villages under community development to improve the quality of life in nearby vicinity of the factory.

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Present capacities of the plant In per Month:

Product Installed capacity/Month

Caustic soda (100% NaOH) 9,000MT

Liquid chlorine 7500 MT

Hydrochloric acid (100%) 3750 MT

Sodium hypochlorite (lye weight) 1500 MT

Compressed hydrogen 14,52,00 NM3

Aluminium chloride 660mt

Stable bleaching powder 1200 MT

Captive power plant 30 MW

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VALUES

Integrity: Honesty in Every Action

Commitment: Deliver on the Promise

Passion: Energised Action

Seamlessness: Boundary Less in Letter and Spirit

Speed: One Step Ahead Always

VISION & MISSION

VISION

To be benchmark in chlor-alkali industry with clear focus on each business process.

MISSION

To exceed expectations by creating value for all stakeholders.

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ABCIL WORKS ON 5 “S” MODELS:

1 Sort

Clearly distinguish needed items from unneeded items remove all items from the work place that are not needed for current operation

2 Set in orderArrange needed items so that they are easy to use and liable them so that one can find them and put them away.

3 ShineTo keep work place swept and clean

4 StandardIt is the reasons that exist properly maintain this integrated sort set in order and shine in unfilled whole.

5 SustainTo make a habit of properly maintaining current procedures.

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PRODUCTS OF ABCIL

Cauctic Soda lye (NaOH)

Liquid Chlorine

HCL (Hydrochloric Acid)

Sodium Hypochlorite (NaOCl)

Aluminiun Chloride

Stable Bleaching powder

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CONCEPTUAL FRAMEWORK OF PRODUCT

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Caustic Soda lye (Sodium hydroxide)

Sodium hydroxide (Na OH ), also known as lye and caustic soda, is a caustic metallic base. It is used in many industries, mostly as a strong chemical base in the manufacture of pulp and paper, textiles, drinking water, soaps and detergents and as a drain cleaner. Worldwide production in 1998 was around 45 million tones. Sodium hydroxide is a common base in chemical laboratories. Pure sodium hydroxide is a white solid; available in pellets, flakes, granules and as a 50% saturated solution. It is hygroscopic and readily absorbs water from the air, so it should be stored in an airtight container. It is very soluble in water with liberation of heat. It also dissolves in ethanol and methanol, though it exhibits lower solubility in these solvents than does potassium hydroxide. Molten sodium hydroxide is also a strong base, but the high temperature required limits applications. It is insoluble in ether and other non-polar solvents. A sodium hydroxide solution will leave a yellow stain on fabric and paper.

Methods of production

Sodium hydroxide is produced (along with chlorine and hydrogen) via the chloralkali process. This involves the electrolysis of an aqueous solution of sodium chloride. The sodium hydroxide builds up at the cathode, where water is reduced to hydrogen gas and hydroxide ion:

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2Na+ + 2H2O + 2e− → H2 + 2NaOH

More accurately:

2Na+Cl- + 2H2O + 2e− → H2 + 2Cl- + 2NaOH

To produce NaOH it is necessary to prevent reaction of the NaOH with the chlorine. This is typically done in one of three ways, of which the membrane cell process is economically the most viabl Unlike NaOH, the hydroxides of most metals are insoluble, and therefore sodium hydroxide can be used to precipitate metal hydroxides. One such hydroxide is aluminium hydroxide, used as a gelatinous flocculant to filter out particulate matter in water treatment. Aluminium hydroxide is prepared at the treatment plant from aluminium sulfate by reacting with NaOH. This reaction is highly profitable, and is hence an important synthesis reaction.

Uses

Sodium hydroxide is the principal strong base used in the chemical industry. In bulk it is most often handled as an aqueous solution, since solutions are cheaper and easier to handle. It is used to drive chemical reactions and also for the neutralization of acidic materials. It can be used also as a neutralizing agent in petroleum refining. It is also used for heavy duty and industrial cleaning.

Industrial use

Alumina production Soap production Oil drilling Fuel production Pulp manufacturing for producing paper Biodiesel Cleaning agent Food preparation

Safety

Solid sodium hydroxide or solutions of sodium hydroxide will cause chemical burns, permanent injury or scarring if it contacts unprotected human or animal tissue. It will cause blindness if it contacts with the eye. Protective equipment such as rubber gloves, safety clothing and eye protection should always be used when handling the material or its solutions.

Dissolution of sodium hydroxide is highly exothermic, and the resulting heat may cause heat burns or ignite flammables.

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Marketing of caustic soda in ABCIL

THE capacity of production of caustic soda is 9000MT/month.80- 85% of caustic soda lye is being marketed to the group company of alumina segment i.e Hindalco Industries LTD.

Rest15-20% caustic soda is sold as contractual sales to various segments such as Steel Unit of Jharkhand ,NTPC ,IOC Refieniers ,State thermal power plant and Paper unit of M.P &U.P.

Some customers of caustic soda

Hindalco Industies. Bokaro steel plant

Century pulp & paper

Eastern neptha chemicals

Sameer sales Pvt LTD

Royal chemicals

Vijay lakshmi enterprises

Haldia petro chemicals ltd

Indian oil corporation ltd

Tin plate co. of India ltd

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TABLE SHOWING MONTH WISE SALES OF CAUSTIC SODA (LYE) REALISATION PMT

CAUSTIC SODA (ON 100% WT)

Quantity(MT) Net Realisation

April ,09 8543.583 20900

May 8600.766 20759

June 8203.071 20409

July 8793.191 18111

August 8800.954 17653

Saptember 8347.302 17775

October 8123.265 15726

November 6636.031 16583

December 8751.600 16426

January,10 8103.386 16391

February 8000.660 15669

March 9234.391 15745

TOTAL 100138.200 17705

(source: annual report 09-10)

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Liquid chlorine

Chlorine is a poisonous, greenish-yellow gas described as having a choking odor. It is a very corrosive, hazardous chemical. Usually combined with other chemicals, it is used to disinfect water, purify metals, bleach wood pulp and make other chemicals. Household bleach, used to whiten fabrics or remove mold from surfaces, is a 5% solution of a stabilized form of chlorine.

Do Not Mix household bleach with acid-containing or ammonia-containing cleaners. Dangerous levels of a very harmful gas can be released.

Most of the chlorine that enters lakes, streams, or soil evaporates into the air or combines with other chemicals into more stable compounds. Chlorine-containing chemicals that seep through soil down into groundwater can remain unchanged for many years.

DO STANDARDS EXIST FOR REGULATING CHLORINE?

Water: The proposed federal drinking water standard for chlorine is 4 parts per million (ppm). Many city water supplies are treated with chlorine to reduce the possible spread of bacterial disease. The system operators are required to maintain a detectable level of chlorine in the piping system. We suggest you stop drinking water that contains more than 4 ppm of chlorine on a regular basis.

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Air: No standards exist for the amount of chlorine allowed in the air of homes. We use a formula to convert workplace limits to home limits. Based on the formula, we recommend levels be no higher than 0.01 ppm of chlorine in air. Most people can smell chlorine when levels reach 0.02-3.4 ppm. If you can smell chlorine in your home, the level may be too high to be safe.

The Wisconsin Department of Natural Resources regulates the amount of chlorine that can be released by industries.

WILL EXPOSURE TO CHLORINE RESULT IN HARMFUL HEALTH EFFECTS?

Short-term, high-level exposures:

Immediately or shortly after exposure to 30 ppm or more of chlorine gas, a person may have chest pain, vomiting, coughing, difficulty breathing, or excess fluid in their lungs. Exposure to 430 ppm in air for 30 minutes will cause death.

The health effects of breathing air that has less than 30 ppm of chlorine are the same as listed below for inhaling liquid bleach vapors.

Liquid chlorine bleach and its vapors (at levels of 3-6 ppm in air) are irritating to eyes. At levels of 15 ppm in air people experience nose and throat irritation. Touching liquid chlorine bleach can cause skin irritation. Drinking levels over 4 ppm can cause throat and stomach irritation, nausea and vomiting.

Long-term, low-level exposure (e.g. several years of exposure to chlorine):

Organ Systems: The main effects of exposure to chlorine gas include diseases of the lung and tooth corrosion. People with previous lung disease, smokers, and those with breathing problems are more sensitive to chlorine.

Cancer: There is no information currently available about whether chlorine causes cancer.

Reproductive Effects: No reproductive effects from chlorine exposure have been reported.

In general, chemicals affect the same organ systems in all people who are exposed.

A person's reaction depends on several things, including individual health, heredity, previous exposure to chemicals including medicines, and personal habits such as smoking or drinking.

It is also important to consider the length of exposure to the chemical; the amount of chemical exposure; and whether the chemical was inhaled, touched, or eaten. People with preexisting lung or heart disease may be particularly sensitive to the effects of chlorine. Chlorine can be prepared by removing the hydrogen from hydrochloric acid using an oxidizing agent. Any oxidizing agent such as manganese dioxide, lead dioxide, trilead tetroxide, potassium permanganate or potassium dichromate can be used. Firstly, the oxidising agents are taken in the round bottomed flask. Concentrated hydrochloric acid is then added through

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a thistle funnel. This mixture is then heated. The oxygen of the oxidizing agents combines with the hydrogen of the hydrochloric acid leaving behind chlorine i.e. hydrogen is removed from hydrochloric acid. The metallic ions of the oxidising agents combine with part of chlorine to form the respective chlorides.

TABLE SHOWING MONTH WISE SALES OF LIQUID CHLORINE REALISATION PMT

Months Quantity(MT) Net Realisation

April,09 4737.660 -2473

May 5122.752 -2116

June 5381.518 441

July 5289.922 2827

August 5058.567 3477

September 5048.639 2215

October 5303.189 -16

November 3742.451 -267

December 5132.938 360

January,10 5097.832 1855

Febroary 5090.394 3284

March,10 5475.491 3440

TOTAL 60450.398 1145

Stable Bleaching Powder

Bleaching powder is also called calcium chlorohypochlorite because it is considered as a mixed salt of hydrochloric acid and hypochlorous acid.

The manufacture of bleaching powder is carried out in Backmann's plant as follows: It consists of a vertical cast-iron tower. The tower is provided with a hopper at the top,

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two inlets near the base (one for chlorine and other for hot air) and an exit for waste gases near the top.The tower is fitted with eight shelves at different heights each equipped with rotating rakes. The slaked lime is introduced through the hopper and it comes in contact with chlorine, which slowly moves upwards. Bleaching powder is collected in a barrel at the base. The chlorine used in the manufacture of bleaching powder should be dilute and the temperature should be maintained below 40oC.

Preparation of Bleaching Powder

Passing chlorine gas over dry slaked lime (Ca(OH)2), gives bleaching powder. Ca(OH)2 + Cl 2 ↑ → CaOCl2 + H2O (Calcium hydroxide (Bleaching Powder)

or slaked lime)

Properties

Bleaching powder is a yellowish white powder and smells strongly of chlorine.

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It is soluble in water. The lime present is always left behind as an insoluble salt. For this reason it is also called chloride of lime.

Bleaching powder is oxidised to chlorine when exposed to air.

CaOCl2 + CO2 → CaCO3 + Cl2 ↑

When bleaching powder is treated with excess of dilute acid, chlorine gas is produced.

CaOCl2 + H2SO4 → CaSO4 + H2O + Cl2 ↑

Amount of chlorine gas produced is called available chlorine.

It is this chlorine that is responsible for the bleaching action of calcium oxy chloride.

Uses

Bleaching powder is commonly used for bleaching clothes.

It is also used in bleaching wood pulp in the paper industry.

It is used to disinfect drinking water.

It is used in the manufacture of chloroform (CHCl3), an anaesthetic.

It is used as an oxidising agent.

It is used to shrink wool

Some Customers of SBP

Reliance paper mill Bahl paper mill

Govt. of Jharkhand

Metro coatings

J.K Khan & company

Hindustan Dyes & Chemicals

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Aluminium chloride

Aluminium chloride (AlCl3) is a compound of aluminium and chlorine. The solid has a low melting and boiling point, and is covalently bonded. It sublimes at 178 ° C. Molten AlCl3 conducts electricity poorly, unlike more ionic halides such as sodium chloride. It exists in the solid state as a six-coordinate layer lattice. AlCl3 adopts the "YCl3" structure, featuring Al3+ cubic close packed layered structure. In contrast, AlBr3 has a more molecular structure, with the Al3+ centers occupying adjacent tetrahedral holes of the close-packed framework of Br− ions. Upon melting AlCl3 gives the dimer Al2Cl6, which can vaporise. At higher temperatures this Al2Cl6 dimer dissociates into trigonal planar AlCl3, which is structurally analogous to BF3. Aluminium chloride is highly deliquescent, and it can explode in contact with water because of the high heat of hydration. It partially hydrolyses with H2O, forming some hydrogen chloride and/or hydrochloric acid. Aqueous solutions of AlCl3 are fully ionized, and thus conduct electricity well. Such solutions are found to be acidic, indicating that partial hydrolysis of the Al3+ ion is occurring. This can be described (simplified) as:

AlCl3 is probably the most commonly used non-Bronsted Lewis acid and also one of the most powerful. It finds widespread application in the chemical industry as a catalyst for Friedel-Crafts reactions, both acylations and alkylations. It also finds use in polymerization and isomerization reactions of hydrocarbons. Aluminium chloride, like similar compounds such as Aluminium chlorohydrate, is also commonly used as an antiperspirant. Aluminium also forms a lower chloride, aluminium(I) chloride (AlCl), but this is very unstable and only known in the vapour phase.

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Chemical Properties

Aluminium chloride is a powerful Lewis acid, capable of forming stable Lewis acid-base adducts with even weak Lewis bases such as benzophenone or mesitylene. Not surprisingly it forms AlCl4

− in the presence of chloride ion. In water, partial hydrolysis forms HCl gas or H3O+, as described in the overview above. Aqueous solutions behave similarly to other aluminium salts containing hydrated Al3+ ions - for example giving a gelatinous precipitate of aluminium hydroxide upon reaction with the correct quantity of aqueous sodium hydroxide:

AlCl3( aq) + 3NaOH( aq) → Al(OH)3( s) + 3 NaCl( aq)

Preparation

Aluminium chloride is manufactured by the exothermic reaction of the elements, aluminium and chlorine. It is commercially available in large quantities.

Uses

The Friedel-Crafts reaction[3] is the major use for aluminium chloride, for example in the preparation of anthraquinone (for the dyestuffs industry) from benzene and phosgene.[1] In the general Friedel-Crafts reaction, an acyl chloride or alkyl halide reacts with an aromatic system as shown:[3]

With benzene derivatives, the major product is the para isomer. The alkylation reaction has many associated problems, such as in Friedel-Crafts, so it is less widely used than the acylation reaction. For both reactions, the aluminium chloride, as well as other materials and the equipment, must be moderately dry, although a trace of moisture is necessary for the reaction to proceed. A general problem with the Friedel-Crafts reaction is that the aluminium chloride "catalyst" needs to be present in full stoichiometric quantities in order for the reaction to go to completion, because it complexes strongly with the products (see chemical properties above). This makes it very difficult to recycle, so it must be destroyed after use, generating a large amount of corrosive waste. For this reason chemists are examining the use of more environmentally benign catalysts such as ytterbium(III) triflate or dysprosium(III) triflate, which can be recycled. Aluminium chloride can also be used to introduce aldehyde groups onto aromatic rings, for example via the Gattermann-Koch reaction which uses carbon monoxide, hydrogen chloride and a copper(I) chloride co-catalyst):[4]

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Aluminium chloride finds a wide variety of other applications in organic chemistry.[5] For example, it can catalyse the "ene reaction", such as the addition of 3-buten-2-one (methyl vinyl ketone) to carvone:[6]

AlCl3 is also widely used for polymerization and isomerization reactions of hydrocarbons. Important examples[1] include the manufacture of ethylbenzene, which used to make styrene and thus polystyrene, and also production of dodecylbenzene, which is used for making detergents. Aluminium chloride combined with aluminium in the presence of an arene can be used to synthesize bis(arene) metal complexes, e.g. bis(benzene)chromium, from certain metal halides via the so-called FischerHeffnerr synthesis. Aluminium chloride, often in the form of derivatives such as aluminium chlorohydrate, is a common component in antiperspirants at low concentrations. Hyperhidrosis sufferers need a much higher concentration (15% or higher), sold under such brand names as Drysol, Maxim, Odaban, CertainDri, B+Drier, Anhydrol Forte and Driclor.

ALUMINIUM CHLORIDE

DOMESTIC CAPACITY TPA

Company Name

Capacity Utilisation

Location Capacity

(2007)

Capacity

(2008)

Capacity

(2009)

Capacity

(2010)

GACL 100% Baroda 0 18000 18000 18000

Kanoria chem..

50% Renukut 20,000 17000 17000 17000

Sulbrandsen 80% Nagda 15,500 15500 15500 15500

Sulbrandsen 80% Baroda 9200 9200 9200 9200

ABCIL 100% Rehla 2500 10,000 9000 9000

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Base metal 100% Baroda 9000 9000 9000 9000

Bhagyanagar 60% West

Godavari

2190 2190 9000 9000

Upra chem.. 50% Silvassa 3400 3400 3400 3400

Mansi 50% Sanand 3000 3000 3000 3000

Others 18450 8500 7000 7000

TOTAL 83240 95790 100100 100100

Source: annual report 2009-10(ABCIL)

Some customers of Aluminium Chloride

Akshar Chemicals

Alka Laboratories Pvt LTD

Arali

Dev Enterprices

R.K Trading co.

Balark Chemicals

Bilag Industries Private Limited

United Phosphorus

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HYDROCHLORIC ACID

Hydrochloric acid is produced along with the industrial preparation of caustic soda (sodium

hydroxide). During the electrolysis of sodium chloride, large quantities of hydrogen and

chlorine gas are obtained as by-products. These two gases are burnt to form hydrogen chloride

gas. The hydrogen chloride gas so formed is dissolved in water to form hydrochloric acid. A

saturated solution of the acid has a density of 1.2 g cm-3. It contains about 40% by mass of

hydrogen chloride.

USES

Steel Industry - For pickling .

Ossein / Gelatin - To treat animal skin , bones for making ossein .

Chemicals - Calcium Chloride , Phosphoric acid , Chlorosulphonic acid , FeC13 .

De-mineralisation Plant - Cationic regeneration .

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Some customers of HCL

Indian Oil Corporation Bhushan power &steel LTD Ashish industries corporation NTPC Limited Tata chemicals Usha martin

Sodium Hypochlorite

Sodium Hypochlorite is a greenish-yellow liquid commonly referred to as "Bleach." The chemical compound formula for Sodium Hypochlorite is NaOCl. Sodium Hypochlorite is prepared by reacting dilute caustic soda solution with liquid or gaseous chlorine, accompanied by cooling.

Sodium Hypochlorite is the main ingredient in laundry bleach. It is used extensively as a bleaching agent in the textile, detergents, and paper and pulp industries. It is also used as an oxidizing agent for organic products. In the petrochemical industry, sodium hypochlorite is used in petroleum products refining. Large quantities are also used as a disinfectant in water and wastewater treatment and sanitary equipment. In food processing, sodium hypochlorite is used to sanitize food preparation equipment, in fruit and vegetable processing, mushroom production, hog, beef and poultry production, maple syrup production, and fish processing.

USES

Chlorine bleach, sodium hypochlorite (NaOCl), is a very useful and inexpensive disinfectant. A disinfectant kills germs that can make people sick. Sodium hypochlorite is just one of the common chlorine disinfectants; chlorine gas (Cl2) and solid calcium hypochlorite [Ca(OCl)2] are two others.

Sodium hypochlorite solutions are also used to disinfect many types of surfaces in hospitals, medical labs, doctors' offices and nursing homes to prevent the spread of infection among patients, residents and workers. This is pretty important when you realize

38

that people in hospitals and nursing homes are sick or elderly and therefore unable to fight off infections as well as healthy people can.

Sodium hypochlorite is used in safe food production and preparation. It is added to water in amounts that are known to destroy germs that are associated with raw foods. Sodium hypochlorite solutions disinfect food preparation surfaces, food sorting machinery, containers and instruments of all types involved in producing, transporting and preparing the foods we love to eat.

Some customers

B.P Paul R.L Rasayan udyog

Shree Ram Chemicals

U Chemicals Industries

Vijay Lakshmi Enterprises

MONTH WISE PRODUCTION OF CAUSTIC SODA( LYE), LIQUID CHLORINE, HCL, SHP, SBP AND ALUMINIUM CHLORIDE DURING THE YEAR 2009-10

Month Caustic soda lye(MT)

Liquid Chlorine(MT)

HCL 33%(MT)

SHP(C12weightMT)

SBP(MT)

AluminiumChloride(MT)

Apr,09 8781.000 5492.779 7054.123 98.550 288 776.875May 9171.000 6006.114 6410.849 116.000 564 814June 8912.000 6194.386 4883.433 116.000 630 635July 8789.000 6002.820 5182.010 140.000 891.395 473.475Aug 8988.000 5818.922 6243.289 133.000 826.8 446.6Sept 8804.000 5605.932 6482.989 132.000 486 452Oct 9276.000 6034.554 6845.785 126.000 407 575.5Nov 6378.000 4309.971 3868.684 141.500 630 522Dec 8899.000 5779.532 6196.464 134.000 567.7 576.5Jan,10 8527.000 6020.732 4458.490 129.000 712 740.5Feb 8260.000 5989.808 4043.312 135.000 762 681.0Mar,10 9610.700 6468.088 6039.300 149.000 778 772.0TOTAL 1,04,395.70 69723.94 67708.728 1550.500 7542.895 7465.400

(SOURCE:ANNUAL REPORT 2009-10)

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MARKETING40

MARKETING DEPARTMENT

Product Planning:The competitive pressure levers to the displacement of existing products and free management tolook ground for alternative source of income through the development of new products to replacing existing procedure or through diversification and extension of the produce line itself such an approach to product development is generally called product planning.Product planning is done every years as per needs company has its own research and developmentdepartment. By this department company also take so many decisions about selling andmanufacturing of products.

Destination for Export

NEPAL & BAGLADESH

Because of the large demand of caustic soda and law level of supply the government decide to produce caustic soda per annum. The location of the plant decided at Palamu keeping in a view, the availability of infrastructure and also convenience transport facility. At this time the production of chlorine and hydrochloric acid also increase.

Product Report

41

SL.No. Name of Product Product Consumption/Sale Place

MainBy Product

Sisterunit customer India Both

1 Custic soda lye √ √ √ √

2 Liquid Chlorine√

√ √ √

3Sodium hypo chlorite

√√ √

4Aluminium chloride

√√ √

5Stable bleaching powder

√√ V √

6Hydrochloric Acid

√√ √

MARKET SEGMENTATION:

The priority of ABCIL is to marked its product in such a way the supply and demand of homogenous and heterogeneous pattern informally more popular as most of its products are organic and inorganic chemicals when every products are in liquid form the segmentation of market area is decided in such a way that customer are near to main complex of ABCIL. The products like caustic soda lye, hydrochloric acid, liquid chlorine and hazardous nature are sufficient for its safe handling are taken. It is proffered to have sales as near as possible.

Pricing policies:

The main aim behind formulating policies of organization is obviously to fetch minimum return.I.e. Best prices of its products while deciding the policies, the producer has to consider the following:

The cost of Raw material

The fixed and variable cost

The administration cost

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Marketing cost including commission of distribution channel

The statutory liabilities

The above factors play a vital role in determining the prices for demand and supply scenario prevailing in domestic and global market.

Channel of distribution:

In the field of marketing channel the distribution indicator routes through which goods and services flow or moves from producers to customers.The route of channel includes the manufacturers and the ultimate cumulative as well as all intermediatories ABCIL has been gathering all the three channel of distribution as under

For large consumer’s public sector like NTPC, ONGC, IFFCO, etc. the company has adopted the zero level channel of distribution where the manufactured goods are sold directly from manufacturer to consumer hence channel of distribution.

For medium scale consumer where price negotiation and transportation arrangement payment follow up are regularly requisite and the quantity requisite is not very large ABCIL has adopted first level of channel of distribution as under.Manufacturing dealer, trader, sub dealer sales

In ABCIL the product are sold out of two ways

Through dealers:

The company appoints same dealers to sell its products. Such dealers work for the company discovers the customer’s negotiation with them and try to expand the market. They charge some commission for their duties .

The company also enters in to direct contact with other large companies like NTPC , IPCL, IOC ,IFFCO, etc. both the parties negotiate with each other directly and if the terms and condition ofcontract is accepted mutually.

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Sales promotion:

Sales promotion is very vital for any company to increase its sales promotion is mainly done in three ways

Advertisement Samples Discount

ABCIL sales promotion is mainly done by two ways.giving sample of product to customercredit facilities up to 30 days

Apart from these two mains ABCIL has no particulars sales promotion policy. The company is striving to makes better one forts great goodwill and maintain good relationship with customers.

Advertising:

ADITYA BIRLA CHEMICALS INDIA LITITED company therefore it does not have big advertising system mostly there is not advertising for ABCIL but sometimes in international market for export of its products new a days ABCIL has started giving advertisement on website for international business.

Website: www.adityabirlachemicalsindia.com

44

Main customers of ABCIL

► INDIAN OIL CORPORATION

► NATIONAL THERMAL POWER PLANT

► HINDALCO

► TATA CHEMICALS

► SRF

► STELL AUTHORITY OF INDIA LTD.

► CENTURY PULP & PAPER LTD.

► PATRATU THERMAL POWER STATION

45

INDIAN CHEMICAL COMPANIES IN EASTERN REGION

&

COMPETITOR

Kanoria Chemical Ltd. (Renukoot)

Hukumchand Jut Mills (Amlai)

Hindustan Heavy Chemical Ltd . (Kolkata)

Durgapur Chemical Ltd. (W.B), Durgapur

Jaishree Chemical Ltd. (Orissa), Ganjam

46

ABOUT KANORIA CHEMICAL LIMITED

Product and capacity

Product Name Capacity (TPA)

Caustic Soda Lye 14760

Liquid Chlorine 6000

HCL (100 %) 9750

Sodium Hypo chlorine 7200

Ferric Alum 18700

H2SO4 1.44

SBP 4950

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It has the largest capacity as compared to others eastern region

companies and it is closest to our unit

ABOUT DURGAPUR CHEMICAL LIMITED

Product and capacity

Product Name Capacity (TPA)

Caustic Soda Lye 10050

Liquid Chlorine 8510

HCL (100 %) 9750

MCB 4950

DCB 2474

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Hydrogen (Loc NM3) 2.37

SBP 8900

TRANSPORTATION &PACKAGING OF THE PRODUCTS

Caustic soda 80-85% transportation of caustic soda is goes to hindalco through railway

wagons. 15-20% of caustic soda is transported through Road tankers to NTPC and others.

Hydrochloric Acid& Sodium Hypo

These are transported through rubber line road tankers.

Chlorine &Hydrogen gas These are filled in cylenders and transported through trucks.

Aluminium chloride It is packed in LDFE(Low density polyethelene) bag with pvc liner or GI

drums .the storage capacity of bags is 25 k.g.and capacity of blue plastic drums is 50 k.g

49

. the transportation of aiumonium chloride through trucks.

Stable bleaching powder It is also packed in bags and GI drums.the capacity of bags is 25 k.g, capacity

of tin drum is 50 k.g and the capacity of white plastic drums is 45 kg. It is also transported through trucks.

In house Ancillaries

For utlising of haradous chlorine the ABCIL has in house ancillaries:

1. Manav Chemicals

2. Competent polymers

3. KG Industries

4. Sudarashan chloride

5. Sumangal chloride

Input materials

1. Salt

2. Coal

50

3. Lime

4. Aluminium

5. Barium carbonet

6. Packing bags

Storage capacity of productsproducts Capacity /day Storage capacity/dayCaustic soda 300TDP 2100MT OF 6 TANKSChlorine 264 TDP 275MT OF 5 TANKSHydrochloric acid 130TDP 272MTAluminium chloride 22TDP 880 BAGS OF 25 KG

/DAYStable bleaching powder 40MT 1600 BAGS OF 25KG

/DAY

51

About the production technique In

Chlor-alkali industriesProduction technique of color alkali industry

1. Mercury cells

52

The mercury cell has steel bottoms with rubber-coated steel sides, as well as end boxes for brine and mercury feed and exit streams with a flexible rubber or rubbercoated steel cover. Adjustable metal anodes hang from the top, and mercury (which forms the cathode of the cell) flows on the inclined bottom. The current flows from the steel bottom to the flowing mercury. Saturated brine fed from the end box is electrolyzed at the anode to produce the chlorine gas, which flows from the top portion of the trough and then exits. The sodium ion generated reacts with the mercury to form sodium amalgam (an alloy of mercury and sodium), which flows out of the end box to a vertical cylindrical tank. About 0.25% to 0.5% sodium amalgam is produced in the cell. The sodium amalgam reacts with water in the decomposer, packed with graphite particles and produces caustic soda and hydrogen. Hydrogen, saturated with water vapor, exits from the top along with the mercury vapors. The caustic soda then flows out of the decomposer as 50% caustic. The UN reacted brine flows out of the exit end box. Some cells are designed with chlorine and analyst outlets from the end box, which are separated in the depleted brine tank. The mercury from the decomposer is pumped back to the cell.

2. Diaphragm cells

The diaphragm cell is a rectangular box with metal anodes supported from the r e p p o c h t i w m o t t o b - , s e t a l p e s a bi which carries a posit ve current. The cathodes are metal screens or punch plates connected from one end to the other end of the rectangular

53

tank. Asbestos, dispersed as slurry in a bath, is vacuum deposited onto the cathodes, forming a diaphragm. Saturated brine enters the anode compartment and the chlorinegas liberated at the anode during electrolysis, exits from the anode compartment. It is saturated with water vapor at a partial pressure of water over the anolyte. The sodium ions are transported from the anode compartment to the cathode compartment, by the flow of the solution and by electro migration, where they combine with the hydroxyl ions generated at the cathode during the formation of the hydrogen from the watermolecules. The diaphragm resists the back migration of the hydroxyl ions, which would otherwise react with the chlorine in the anode compartment. In the cathode compartment, the concentration of the sodium hydroxide is ~12%, and the salt concentration is ~14%. There is also some sodium chlorate formed in the anode compartment, dependent upon the pH of the acolytes.

3. Membrane cells

54

In a membrane cell, an ionexchange membrane separates the anode and cathode compartments. The separator is generally a bi-layer membrane made of perfluorocarboxylic and perfluorosulfonic acidbased films, sandwiched between the anode and the cathode. The saturated brine is fed to the anode compartment where chlorine is liberated at the anode, and the sodium ion s e t a r g i m e d o h t a c e h t otmcompart ent. Unlike in the diaphragm cells, only the sodium ions and some watermigrate through the membrane. The un reacted sodium chloride and other inert ions remain in the anolyte. About 30-32% caustic soda is fed to the cathode compartment, where sodium ions react with hydroxyl ions produced during the course of the hydrogen gas evolution from the water molecules. This forms caustic, which increases the concentration of caustic solution to ~35%. The hydrogen gas, saturated with water, exits from the catholyte compartment. Only part of the caustic soda product is withdrawn from the cathode compartment. The remaining caustic is diluted to ~32% and returned to the cathode compartment.Thus, all three basic cell technologies generate chlorine at the anode, and hydrogen alongwith sodium hydroxide (caustic soda) in the cathode compartment (or in a separatereactor for mercury cells, see Figure 5). The distinguishing difference between thetechnologies lies in the manner by which the anolyte and the catholyte streams areprevented from mixing with each other. Separation is achieved in a diaphragm cell by aseparator, and in a membrane cell by an ion-exchange membrane. In mercury cells, thecathode itself acts as a separator by forming an alloy of sodium and mercury (sodiumamalgam) which is subsequently reacted with water to form sodium hydroxide andhydrogen in a separate reactor.

RISK & SAFETY

55

RISK ANALYSIS OF CHEMICAL INDUSTRY

Chemicals have become a part of our life for sustaining many of our day-to-day activities, preventing and controlling diseases, and increasing agricultural productivity etc. An estimation of one thousand new chemicals enter the market every year, and about 100000 chemical substances are used on a global scale. These chemicals are mostly found as mixtures in commercial products. Over one million such products or trade names are available.The chemical industrial sector is highly heterogeneous encompassing many sectorslike organic, inorganic chemicals, dyestuffs, paints, pesticides, specialty chemicals,etc. Some of the prominent individual chemical industries are caustic soda, soda ash,carbon black, phenol, acetic acid, methanol and azo dyes. Chemical manufacturingsector in India is well established and has recorded a steady growth in the overallIndian industrial scenario. The Chemical and allied industries have been amongst thefaster growing segments of the Indian industry. The Indian chemical industrial sectorhad a turnover of around Rs.1200 billion in 2001-2002. The chemical exports also

56

accounts for more than 16.20% of the total Indian exports during 2001-2002.The risks associated with the chemical industry are commensurate with their rapidgrowth and development. Apart from their utility, chemicals have their own inherentproperties and hazards. Some of them can be flammable, explosive, toxic orcorrosive etc. The whole lifecycle of a chemical should be considered when assessingits dangers and benefits. Though many of chemical accidents have a limited effect,occasionally there are disasters like the one in Bhopal, India, in 1984, where lakhs ofpeople were affected and LPG explosion in Vizag refinery where huge propertydamage in addition to 60 deaths was experienced. Therefore chemicals have thepotential to affect the nearby environment also.Design and Pre-modification review : Improper layout like location of plant indown wind side of tank farm , fire station near process area , process areavery close to public road and wrong material of selection had caused severedamages to the work and outside environment

Chemical Risk Assessment: Not assessed for new chemicals from the point ofview of compatibility, storage, fire protection, toxicity, hazard index rating, fireand explosion hazards

Process Safety Management: HAZOP, FTA, F&E Index calculation, reliabilityassessment of process equipment, incorporating safety trips and interlocks,scrubbing system, etc. not done before effecting major process changes, lackof Management of Change procedure (MoC), etc.

Electrical Safety: Hazardous area classification , protection against staticelectricity , improper maintenance of specialized equipment like flameproofetc were ignored.

Safety Audits : Periodical assessment of safety procedures and practices,performance of safety systems and gadgets along with follow up measureswere not carried out.

Emergency Planning: Lack of comprehensive risk analysis indicating theimpact of consequences and specific written down and practiced emergencyprocedures along with suitable facilities had increased the severity of theemergency situations.Training: Safety induction and periodical refresher training for the regularemployees and contract workmen were not carried out.Risk Management & Insurance Planning : Thorough identification and analysisof all risks and insurance planning were not done so that interruption risksand public liability risks could also be managed effectively.

SAFETY & HEALTH IN CHEMICAL INDUSTRY

Introduction

57

The significance of Safety & Health in chemical industries has been a vital issue in

achieving productivity and an edge in the competitive world. This paper is an effort to

present the various factors governing the safety and Health of chemical industries.

FACETS OF SAFETY & HEALTH IN A CHEMICAL INDUSTRY

Risk Of Accidents And / Or Harmful Exposures : Areas of Concerni) Dangerous Materials ii) Hazards of Pressure Vessels iii) Hazardous Chemical Reactionsiv) Hazardous of Unit Operations v) Flammable Gases, Vapours And Dust

Hazardsvi) Health Hazards vii) Hazards due to corrosion viii) Entry in To Confined Spaces ix) Working with Pipelines x) Plant Alteration and modification xi) Sampling and Gauging xii) Hazards due to Instrument Failures.

Dangerous Materials i)Explosives ii) Gases iii) Inflammable Liquids iv) Inflammable Solids v) Oxidising substancesvi) Toxic and Infectious substances vii)Radio Active Substances viii)Corrosive Substancesix)Miscellaneous Dangerous Substances

Hazards Of Pressure Vessels1.Leakage or Bursting of Pressure Vessels 2.Design defects 3.Failure of Relief

Systems 4.Lack of hydraulic testing. 5. Lack of Proper Instrumentation or

Instrumentation Failure 6.Lack of N.D.Tests 7.Corrosion of Vessels. 8. Lack of

routine inspections 9. Attempt of Pneumatic testing

Hazards of Unit operationsUnderstanding the hazards inherent in each unit operation and adopting

precautionary and emergency measures. Examples

Heat Transfer Surface Fouling & Leakage, Miscalculation in scaling, Mixing of fluids etc.

Size Reduction Dust Explosions, Dust release, etc.

58

Flammable Gases, Vapours And Dust Hazards• Identification of potential areas, where possibility of flammable mixture are possible.• Efforts to avoid hazardous mixtures, by inert gas purging and other methods.• Declaring hazard zones and providing flame proof electrical fittings and equipments.• Providing Explosion Vents in spaces with possibility of air-vapour mixtures.• Explosive meter testing.• Providing adequate fire control devices.• Providing arrangements to avoid static sparks. Etc.

Health Hazards• Identification of potential health hazards.• Assessment of levels of physical and chemical health hazards.• Control of hazards by various techniques• Adequate awareness among the workers.• Periodic medical examination of the workers.• Personal protection for occasional exposures.• Proper hygiene and decontamination facilities. etc.

Hazards Due To Corrosion• Weakening and falling of structures and sheds.• Falling of workers from height due to breaking of raised platforms, hand rails,

toe boards, stairs and ladders.• Spills and toxic releases from pipelines due to corrosion.• Leakages and bursting of vessels due to corrosion.• Corrosion monitoring and control.• Testing and inspection of vessels and structures to ensure safety

Entry into Confined Spaces1.Oxygen Deficiency 2. Toxic Contamination 3. Flammable Environment4.Possibility of Electrocutions through electric equipments5.Possibility of Toxic gas generation during the work 6.Lack of Ventilation 7.Difficulty in welfare monitoring 8.Failure to escape on emergency 9.Combustible Substances

Safety While Entry into Confined Spaces• Thorough cleaning and purging before hot work.• Safety belt with one end outside.• Life line to monitor welfare.• On going ventilation.• A person to watch the welfare.• Low voltage electric appliances.• Self contained breathing apparatus.• Environmental monitoring for oxygen, toxic gases and flammable gases before entry.• Pipeline isolation before entry• Electric isolation before entry.

59

• Proper ladder for entry.

Safety In Use Of Pipelines• Hazards due to inadequate Identification of Pipelines.• Hazards due to leakages and bursting of pipelines.• Hazards due to collision of vehicles with pipelines.• Hazards due to improper materials of construction of pipelines.• Hazards while breaking of pipelines.• Hazards while tapping of pipelines.• Bursting due to thermal expansion of liquids in the pipelines.• Bursting of pipelines due to freezing of pipelines.• Accumulation of condensates in the pipelines. Etc

Plant Alterations and Modifications

Alteration in plant, equipment, component, process, operating procedure, etc. due to some difficulty. Followed by failure in some unforeseen aspect of the system.• If any alteration is inevitable,• Design intention of each and every component of the system should be well

understood by every person concerned.• Refer the matter to the designers.• Carry out HAZOP study by expert team.• Pass it through plant modification approval committee

Sampling And Gauging• Exposures of gases, vapours and dust while collecting samples.• Approaching odd locations.• Splashes and spillages while collecting samples.• Exposures due to breaking of sight glasses and glass level indicators.• Dip gauging of flammable liquids.• Dip gauging of corrosive liquids.

Hazards Due To Instrument Failures• Absence of fail safety instruments.• Lack of interlocks and trip systems.• Human failures in manual and semi automatic operations.• Need for safety analysis of the instrumentation systems

PROTECTION ZONES (EXPLOSION PROTECTION, SEPARATION DISTANCES)

Premises are strictly maintained as a “No Smoking” area. For electrical installations and instrumentation, the entire plant area has been sub-divided into hazardous and non hazardous zones. The hazardous zones have been classified appropriately as per the

60

National Fire Protection Association (NFPA) code 70, better known as the National Electric Code. The NFPA classifies Hazardous Areas by three different factors known as classes, groups and divisions. These factors each identify different elements of concern and combine to define the type of hazardous substance (Class), and explosive rating of the substance (Group) and the degree of hazard created (Division).The plant layout has been designed as per established engineering practices in conformity with the provisions of required safety separation distances have been maintained. The layout of plants, under the purview of the various statutory regulations has been granted and these regulations are being renewed regularly:In addition to the fulfillment of statutory requirements, compliance of recommendations of various other national and international standards and Code of Practices have been kept in view for the layout of the plant facilities.Separation distance maintained in protection zones as per rules. The equipments, pipings and instruments action are provided for explosion protection. Explosion proof motors and fittings are used for hazardous areas.Explosive meters are also provided to plant in-charges for checking gas leak, if any. Proper fire prevention and protection equipments installed, checked and kept ready.

PROCESS & SAFETY – RALATED DATA FOR INDIVIDUAL PROCESS STAGES :

Physical and Health Occupational Hazards in any large scale Chemical /Hydrocarbon Processing Industry (CPI/HPI) like our can be broadly classified into the following categories:i) Mechanical Risks ii) Electrical Risks iii) Fire/Explosion Risks iv) High /low Temperature Exposure Risks v) Toxic/Carcinogenic Chemicals Exposure Risks. vi) Corrosive/Reactive/Radioactive Chemicals Exposure Risks.The first two types of risks are of universal nature associated with any industrial activity and not specific to a particular plant or process. Mechanical risks which are generally encountered are injuries to the head, Limbs, eyes, etc usually as a results of negligence on the part of operating/maintenance personnel in the use of improper tools, bypassing prescribed safety procedures neglect of personal protective wear and risks associated with rotating machinery as well as risks associated with high-energy release from compressed gases. Electrical risks which result in shock and/or burns are most often a consequence of poor maintenance, ingress of dust or moisture, handling by unauthorized personnel and use of improper/substandard hardware.

Equipments For Fire Fighting

ABCIL is well equipped with all Fire & Safety appliances like Fire Tenders-3 with a pick up van, all types of extinguishers like DCP,CO2,WATER CO2 Foam types in adequate numbers, PPES like Breathing Apparatus of different types & capacities,OnLine Air masks at various Hazardous areas,Gas tight Suits,Alumnised Suits,Explosive meters,Portable Gas Detectors ,Chlorine Emergency Leakage Kit, Air compressor for air cylinders filling,PVC apron & suits,gum boots, safety shoes, safety belts , Various types of hand gloves ,ladders,nylon life saving net,Canisters,safety torches,dust pads etc.Fire Detection/ Alarm System for Plant Control Rooms, Administrative building, Cable Galleries, Transformers are also provided. These are of Ionization, Optical & Heat

61

sensing type.. By putting the objectives and targets in OHSAS-18001like various trainings on Fire & Safety ,environment and health matters, periodic health check of the employees, training of Truck drivers and transporters and Importantly to contract and casual labour. and then follow up is being done rigorously to meet the objectives. All chemicals MSDS (Material Safety Data Sheet) are kept at easily available places toabout the properties and other values. Each chemical antidotes are also kept available in the hospital and at various places.

Communication during Emergency

Fire and safety section has two phone numbers with one emergency phone number (i.e.100).All these numbers are well displayed in different locations in plants so that fast communication can be possible in case of emergency.

System Elements or Events that can lead to a major Accident

All the section / plants of ABCIL are constructed and designed taking care of al relevant safety measures possible. However the system elements such as Chlorine tonners is some of them which can lead to a major accident.Although, Fire, explosion and release / leakage of toxic chemicals may lead to

majoraccident, all necessary safety measures have been duly incorporated in the plant

designand regular up gradation of safety appliances is carries out.

SAFETY RELEVANT COMPONENTS

The design and operating procedures has been so developed that it enables the safe handling, operation and upkeep of plants. However, so far no major accident has taken place. The built in Safety has been the prime factor while selecting the equipments, processes etc. Standards codes of practices are being followed seriously during the erection, modification etc.Some Safety relevant components are mentioned below :-- Use of relief valves, rupture discs, explosion vents of adequate sizes with proper testing. Checking of these safety relevant components are done in every annual shut down.- Automatic control valves, solenoid operated quick shut off valves are installed to control any sort of emergencies.- Alarms, sensors, relays, trip systems have been provided.- Proper training, disclosure of information related to Safety rules / procedures have been given.- Appropriate operating procedures, manuals etc. are implemented since inception.- Flare stack for burning of vent gases like Ammonia, Natural Gas and Naphtha Vapours havebeen provided.- All the statutory requirements are being fulfilled and followed.

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SPECIAL DESIGN CRITERIABased on Preliminary hazard analysis the design criteria of system elements are as follows

Plant DesignAll Plants aredesigned with a great deal of safety. The whole plant is open with proper lay out of pipe lines, trenches, cables and flame proof lighting arrangements. A proper spacing between the equipments, reactors, pumps, turbines, and compressors has been kept. Insulation of pipe lines, vessels have been done wherever required. Proper marking, arrows, colour coding has been done for convenience and statutory requirements. Control room with emergency doors and safety equipments are established. Safety trip systems with alarms and trip relays (intrinsically safe) have been provided to control and safe shut down of the plant during emergencies. Stacks for furnaces and flare stack for burning of vent / excess gases of 30 M. height have been provided.Safety valves, Rupture discs, explosion vents, vacuum breakers have been provided as extra safety precautions other than automatic tripping of concerned equipment / unit in case of any abnormality.All safety measures have been adopted to ensure safe handling and operation of these

plants. Safety devices are of adequate sizes. Waste disposal being done with great care.

INSTRUMENT CONTROL AND ALARMS

Kick back antisurge valves on compressors to avoid surging in compressors. Pressure controls at different points of the plants to control operating pressure automatically well within the limits. Flow controls to control and regulate flow of fluids automatically at desired level.Temperature controls to control requisite temperature automatically. Level controls to control level in various equipments automatically.Likewise several alarms and trip circuits with automatic actuation are given in all the

plants for safe operation and process control.

SAFETY TECHNIQUE IN ABCIL

Safety Poster

To arouse Safety consciousness among the employees different posters and bannersrelated to safety are displayed at relevant locations in the factory. These related to safetyare rotated and changed from time to time to educate all the employees about theFollowings:1) About home safety2) About road safety3) About working on machines and guarding4) About working with dangerous chemicals5) About working on heights6) About electrical safety

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7) About use of LPG8) About static electricity9) About Fire10) About Noise pollution11) About Air / Dust pollution

Safety Calendars

Safety Calendars received from National Safety Council, Bombay having 07 pages of

different safety pictures are distributed for putting on the wall at conspicuous places in

offices, canteen, control rooms of the plant for educating employees on safety aspects.

Celebration of National Safety DayEvery year on 4th March National Safety Day is celebrated. This is accompanied with

different activities in that week .

Safety Inspection and Audit Programme

Routine inspections of the Safety equipments are carried out by the Safety department.

Internal safety audit is carried. The recommendations of internal audits are implemented.

Third parties having required expertise, are also commissioned, to conduct safety audit.

The recommendations made, are implemented to the extent practicable.

Incident/ Accident Investigation And Reporting

We have a written accident investigation procedure. This investigation procedure is included in safety manual, which has been issued to all employees. The company has adopted the policy that all incidents and accidents should be reported and investigated. For reporting accidents there is a standard format.Whenever an accident takes place, the initiation of the format is done by the Shift-in-charge of the particular area. Logging is done. The Safety department investigates minor accidents and the major ones by suitably constituted committees, "Near-miss" cases are also investigated, and actions are taken to prevent recurrence.All accident/ Near-miss cases are discussed in Central Safety Committee Meetings.

Recommendations of Safety Committee are percolated down to the shop floor and

ensures their implementations.

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This particular sample analysis has been carried out to identify where the hazard lie and

how it culminates into an accident.Some of the obvious and logical causes like electricity,

which is the major contributor to any accident. Supporting this, the equipment involved

also belong to the electrical supply or carrier.

The location storage figures on the top of the activity, which shows that there are less

attention paid by the industries to storage area. In fact storage needs greater care and

safety as the quantities are large and the effects would be greater in case of even minor

failure.

The only supporting and odd inference is the chemicals where cotton and polyester have

figured when there are several chemicals which are highly flammable in nature are

employed in the chemical process industry. Probably this indicates that little attention is

paid to safety in cotton or polyester industries.

The paper is only indicative based on the 100 chosen cases that the need for such an

analysis to understand the trends of accidents with their causes and consequences. It is

generally advised to the industries to make use of their incidents/accidents data for

analysis. When industries are readyto share the information on this with an organization

like CISRA it would be beneficial to the entire chemical industry as these provide

valuable guidance to the Risk analysis carried out by CISRA and also for generating

Reliability Data base for Indian Industrial conditions.

SWOT ANALYSIS OF ABCIL

STRENGTHS:•Strong brand recognition• Internet sales• Growing international presence• Superior research and development department• Strong financial returns• Strong sense of culture in the working environment• Successful experience being competitive• Effective Leadership• Cost leadership• Prestigious Client Base• Customer Loyalty• Diversified Business

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• Product innovation capabilities•Technological excellence.• Good corporate image.

WEAKNESSES:• Complexity of operation• Lengthy processing chain

OPPORTUNITIES:• Growth of core sector industries• Rapid integration with global economy• Booming construction business in asia• Growing e-commerce’s business.• Increasing urbanization

THREATS:• Entry of global players• Take over possibilities• Political threats• The impact of foreign currency fluctuationand interest rates.• Loss of sales to substitutes

CONCLUSION

The study through the project training in Aditya Birla Chemicals India Ltd., Rehla has enabled me

to understand various aspect of product & marketing to establish a better environment with

overseas customer. This is not only enhances my practical knowledge but also help me to know

about the product marketing of a company/firm concern .

The study of marketing helped me mix my theoretical knowledge with the practical

knowledge .This practical experience has helped me in improving my personal attribute too. I

sincerely hope that this project training will go a long way in shaping my carrier in marketing .

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To conclude with we would just like to say that the Indian life insurance market is quite a big one

and more importantly a huge part of it has been left untapped till now, therefore there is enough

room for all the private players to establish themselves provided they give the Indian consumer the

best value for their money in the long run.

The ABCIL has a very rich history and spread over the world .ABCIL Company has a strong

competitive position in the market with rapid growth. It needs to use its internal strengths to

develop a market penetration and market development strategy. Further company should integrate

with other companies, acquisition of potential competitor businesses, innovation in branding and

aggressive marketing strategy can bring long term profitability.

RECOMMENDATIONS ABCIL should try to invite more ancillaries for utillising the clorine and HCL.

Star brands can be used for promoting company’s existence, as it is one of the

cheapest and most effective sources.

Target the rural population which is one of the biggest untapped area.

ABCIL should focus mainly on those customers who are comparatively nearer to reduce

the transportation cost.

Generate some innovative and alternative channels of distribution.

ABCIL should evaluate cost benefit if it set up its own transportation system.

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ABCIL should increase the capacity of captive power plant to get the cost benefit of power.

Stringent credit worthiness analyze in order to avoid bad debt of customer.

BIBLOGRAPHY

Websites:

www. adityabirlachemicalsindia.comwww.goggle.comwww.scrbid.comwww. chemindia.org

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kotlar Philip, Marketing Management, Pren Tice-Hall of India Pvt Ltd.New Delhi

Saxena R.S., Marketing Management, Himalaya Publications,New Delhi

Department of Marketing,ABCIL

Different Newspaper

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