The Chlor-alkali industry and chemical industry

Travancore Cochin Chemicals Organization Study

INDUSTRY PROFILE

WORLD SCENARIO

Now the world is full of competition. The Chlor-alkali industry and chemical

industry in general are growing faster in the world. The chemical industry plays a vital role

in the production of many manufactured goods. The industry provides a tremendous variety

of materials to other manufactures. It also produces chemical products that benefits people

directly. Major products of the industry include detergents, drugs, fertilizers, food

preservatives, flavoring and paper products etc

Most major chemicals are basic chemicals used in many countries. It is used to

produce fertilizer and other chemicals. Other chemicals include chlorine, hydrochloric acid

and sodium hydroxide and these chemicals are used in plastics.

The production has become increasingly concentrated in Multinational

Corporation, which have plants and offices in number of countries. To help low costs, the

companies locate their factories in countries, where raw materials are readily available. Many

basic chemicals are produced in developing countries by factories of multinational firm. But

chemicals requiring advanced production methods are made in industrialized countries only.

CHLOR – ALKALI INDUSTRY IN THE WORLD

During the 1970’s Caustic Soda was manufactured by utilizing the mercury cell

technology. It was manufactured by utilizing the mercury cell technology. It was produced by

amalgam process. But this technology consumes a lot of energy and power. There was a

problem of mercury pollution also.

It was during the same period due to the mina Mata disease resulting from the

Mercury pollution, the Japan Government issued a direction to all caustic soda plants to

change over to other process under a time bound program. This paved the way for the

development of Ion Exchange Membrane Cell (IEMC). This process apart from totally

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avoiding Mercury, consumes 30% less power compared to the conventional process of

mercury cell technology.

In the international scene, the increased production of papers, aluminum, soap

and detergent naturally led to increased requirement of caustic soda. In the world scenario the

green peace movement was seeking the phase out of chlorine usage, especially the CFC

compounds. This has resulted in closing down of some of the chlor-alkali industries in

Europe and restricted production in other European and North American plants.

With the drop of international production, the international price of caustic soda

is steadily growing up. The caustic which was sold for a 50$ /ton has grown up to 300$ per

ton now. The international markets operate in the context of demand supply prevailing from

time to time. The situation of surplus and shortage are cyclical as a result of which

international prices tend to be highly volatile. Predatory pricing is common and drop in

important duty often followed by a steep drop in price of the chemical.

Though the demand for chlorine is growing fast, the demand of caustic soda is

so promising. Hence the units in the gulf and western countries are selling caustic soda at a

cheaper price.

CAUSTIC SODA PRODUCING COUNTRIES

USA

China

India

France

Germany

Russia

Canada

Japan

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NATIONAL SCENARIO

The chlor-alkali industry in India forms an important component of basic

chemicals industry, comprising around 74% of the basic chemicals production in India.

Caustic soda, soda ash, chlorine alongside hydrogen and hydrochloric acid comprise the

chlor-alkali industry’s components. These chemicals find their applications in a number of

industries such as textiles, chemicals, paper, PVC, water treatment, alumina, soaps &

detergents, glass, chlorinated paraffin wax, among others. The demand for the two sub-

segments – caustic soda & soda ash, has increased significantly registering a CAGR of 5.6%

and 4.7% respectively, over the past five years.

CARE Research’s report on ‘Indian Chlor-Alkali Industry’ throws light on key

aspects that govern the industry’s present market dynamics, while commenting on the future

demand and supply growth in industry for the next five years, by offering an individual focus

on its prime sub-segments. To accomplish this, CARE Research has developed a robust

methodology that incorporates predicting the functioning of essential domestic and global

factors impacting the industry and analyzing their co-relation and variation with specific

internal and external aspects governing the industry and its sub-segments.

The report also provides detailed analysis on present demand and supply

scenario factoring in their key drivers, with special emphasis on end-user segments, capacity

expansions, production, utilization, etc. CARE Research also elaborates the cost structure,

alongside key financial and operational metrics within each sub-segment. The report entails

present domestic and international pricing scenario, while commenting on the current global

capacity and production setting for each sub-segment. In addition, the report features a

snapshot of six players across the sub-segments, with emphasis on their financial and

operational characteristics for past five years, while examining their recent corporate actions

and future plans.

The report is indispensable for any company in chlor-alkali and chemicals

industry, banks/ FIs, policy makers, research & academic organizations, other international

and national agencies, etc. Additionally, the monthly updates (for the period December-2011

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to November-2012) accompanying the subscription of the said report would form a potent

tool for the subscribers to keep abreast of the happenings in the industry.

MAJOR INDIAN CHLOR-ALKALI UNITS

Chemplast, Tamil Nadu

DCW, Tamil Nadu

TCP, Tamil Nadu

Actual Ltd, Ahmadabad

Bilt Chemicals Ltd, New Delhi

Century Reyon, New Delhi

PCW Ltd, Mumbai

Gujarath Heavy Chemicals, Gujarath

Hukumachand Jute and Chemicals, Orisa

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STATE SCENARIO

Caustic Soda is one of the basic inorganic chemicals manufactured from

common salt. There are three technologies used in the electrolytic production of caustic soda.

They are diaphragm cell technology, mercury cell technology and membrane cell technology.

In the state only TCC is engaged in the production of caustic soda, chlorine and

hydrochloric acid. The installed capacity of TCC is 175 tons per day caustic soda and the

products are used in manufacturing of soaps, textiles, plastics etc. There are many small-scale

industries in the state, which consumes caustic soda for the production of soaps, plastics and

textiles.

In view of the high transportation cost and hazardous nature of chemicals

transported, the caustic soda industry in the state is more localized and the consuming units

have come nearer to the manufacturing unit.

Also because of the high transportation cost, it is not possible to export caustic

soda in large volume from the state.

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COMPANY PROFILE

The Travancore Cochin Chemicals Limited popularly known as TCC Ltd is a

state public sector undertaking owned by the government of Kerala. TCC is situated at

Udyogmandal in Cochin industrial belt. Incorporated in 1951, TCC is one of the oldest chlor-

alkali units in the sub-continent. TCC is a heavy chemical industry engaged in the

manufacture and marketing of caustic soda, chlorine and allied chemicals. TCC is an ISO

9001:2000 certified company. The company supports a large number of industrial units of

strategic importance by supplying basic chemicals.

TCC is one of the oldest chlor alkali units in India. It was the first mercury cell

plant for manufacturing caustic soda in the country and hence it was the pioneer producer of

rayon grade caustic soda in India. TCC is the only chlor- alkali unit in the state of Kerala and

also the only one chlor alkali unit in the public sector in the country. Country wide, it has

about 37 competitors, big and small. The caustic soda industry in the country is facing a crisis

with supply in excess of demand.

Today TCC has a production capacity of 57750 tones of caustic soda per annum.

The company supports a large number of industrial units of strategic importance by supplying

basic chemicals. With continuous efforts for up gradation of technology and professional

management the company has a good track record of operation and healthy industrial

relations.

TCC was bestowed with various awards for excellent performance with regard

to production, productivity, energy conservation and environmental protection which is

consider as an award for commitment rather than for efficiency. The company has a good

production plant. TCC is conscious about its social responsibility and is dedicated to maintain

the quality of product.

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HISTORY OF TCC Ltd

In 1950, FACT started their ammonia plant. They wanted to produce

Ammonium Chlorate which is a fertilizer, using ammonia from their newly installed

ammonia plant. For that they required HCl gas. Fact at that time was purely a fertilizer unit

and HCl gas was a chlor alkali industry product, they wanted to install a separate chlor alkali

unit for supply of HCl gas to FACT. In 1950 a joint venture was registered by fact and their

technology supplies M/s. Mettur chemical and industrial corporation, under the name

Travancore Mettur Chemicals (TMC). As the period was post war II, TMC could not raise

sufficient fund. As the plant equipments ordered started arriving at Cochin airport, TMC

could not take delivery by payment. By that time knowing that a chlor alkali industry is being

installed at Udyogamandal two other companies. M/S. HIL and M/S. IRE started setting up

their plants at Udyogamandal with the idea of using chlor- alkali products for their production

process. TMC represented them Travancore-Cochin state Government regarding their

financial problem. The Government came to know that with the closing down of TMC, two

other companies at a major plant of FACT have to be shut down. So the Travancore-cochin

Government gave massive financial assistance to TMC and with that company renamed as

TCC (Travancore Cochin chemicals). Commercial production in 1954 with 20 tons per day

production capacity. The production process employed was electro sis and the technology

used was Mercury Cell Technology. TCC has been the pioneer producer of Rayon grade

caustic soda in the country. The production capacity was gradually raised to 160 TDP in

1975.

In 1997 TCC started a 100 TDP caustic soda plant employing membrane cell

technology which is energy efficient and environment friendly Technology. The plant was

supplied by M/S. Asahi Glass Company, Japan. In 2002 the capacity of AGC plant was

increased to 125 TDP. In 2005 and 2006 a 25 TDP caustic soda plant each employing

membrane cell technology were installed. The plant was supplied by M/S. UHDE, Germany.

In 2004, TCC stopped operations of its last mercury cell plant. At present TCC has 175 TDP

caustic soda production capacities employing the latest membrane cell technology.

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THE GROWTH STAGES OF TCC

1956- A continuous caustic fusion plant with a capacity to upgrade 20 tons of caustic

soda/day was installed.

1958- A chlorine liquefaction plant was added mainly to meet demand from the new DDT

plant of Hindustan Insecticides Ltd, Ernakulum

1960- Production of caustic soda was raised to 30 tons/day.

1963- The caustic soda capacity was raised to new level of 40 TDP. The company

established new units for the manufacture of sodium hydro-sulphate with rated

capacity 30 TDP.

1967- The capacity of caustic soda plant was raised to 60 TPD as per third stage of

expansion.

1970- A 60 TPD caustic soda concentration plant (CCF) was set up.

1975- Forth stage of expansion: a 100 TPD caustic soda plant was set up

1976- The company set its own water pumping and purification station.

1980- Export of hydrochloric acid to gulf countries

1983- Installed an indigenously developed plant to recover mercury from effluents.

1987- Installed hydrogen firing system in continuous caustic fusion plant.

1988- Replaced graphite anodes by titanium anodes.

1990- Brine De- chlorination unit commissioned.

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1992- Research and development department was set up

1994- The company planned to set up a plant employing membrane cell technology for the

production of caustic soda in collaboration with ASAHI GLASS company of Japan

with a capacity of 100 TPD.

1997- The company commissioned the new membrane technology plant in July with 100MT

capacity.

2000- The company set up a brine purification plant.

2002- Capacity of AGC plant increased from 100 TPD to 125 TPD caustic soda.

2005- Two 25 TDP each UDHE plant were installed which utilizes membrane cell

technology, each making an overall capacity of 175TPD.

ACHIEVEMENTS OF TCC

TCC is always in the forefront to adopt and incorporate the latest technology in

its plants. Several innovative and advanced technologies were implemented to achieve higher

production, energy conservation, environmental control and economy in inputs. The company

has been dynamic to be proactive to market and thus to come out as a profitable public sector

undertaking. TCC has been bestowed with various awards for excellent performance with

regard to production, productivity, energy conservation and environmental protection, which

is considered as an award for commitment rather than for efficiency.

1981- Best Performance Award for Safety in the State from Directorate of

Factories & Boilers, Government of Kerala.

1987- Award for best performance in safety in India under chemical industries.

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1988- Best Pollution Control Award under group “Heavy Inorganic Industries" in Kerala,

from Kerala State Pollution Control Board

1989- Award for Best Performance in Safety in India under "Chemical Industries Group”

from National Safety Council.

1989- Prize for Productivity from Kerala State Productivity Council.

1993- Best Performance award for Energy Conservation in the State of Kerala

under group "Chemical & Fertilizers – above 3000 KVA" from

Government of Kerala.

1994- Best Performance award for the Productivity in the State of Kerala under group

“Large Industries” from Kerala State Productivity Council.

1995- Best Performance award for Productivity in the State of Kerala under “Large

Industries" from Kerala State Productivity Council.

1996- Best performance award for energy conservation in the state of Kerala under “Major

industries” group from Energy Management Centre, Government of Kerala.

1998- Best performance award for Energy Conservation in the State of Kerala under group

"Major Industries” from Energy Management Centre, Government of Kerala.

1998- Performance award for Energy Conservation under group "Chlor-alkali Sector",

Ministry of Power, and Government of India.

2003- Kerala State Energy Conservation Award (2000) in the category of Large Scale

Industry.

2005- National Energy Conservation award under “Chlor-Alkali Sector”.

2006- Kerala State Energy Conservation Award.

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2008- ‘Pollution Control’ award from Kerala State Pollution Control Board.

PRESENT SITUATION

TCC is the only chlor-alkali unit in Kerala. in India there are about forty chlor-

alkali units as competitors. TCC owns 109 acres of land and around 695 people are working

in TCC in three shifts. The plants are functioning utilizing full capacity.

TIME SHEDULE FOR SHIFTS

8 AM - 4 PM

4 PM – 12 AM

12 AM – 8 AM

LOCATION

The Travancore-Cochin Chemicals Limited (TCC) is a State Public Sector

Undertaking owned by the Government of Kerala situated at Udyogamandal in Cochin

industrial belt. The factory and registered office is located 20 KM from the Cochin

International Airport and 15 KM from the Ernakulam railway station.

MISSION

TCC is committed to supply quality chemicals at competitive prices to customers.

“Customer satisfaction, Concern for Environment and Safety are our priorities”.

We intend to achieve:

Utmost level of conservation of all resources including energy.

Cost effectiveness in all the operations.

Regular up gradation of technologies used in processing.

Compliance with laws and statutory regulation.

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CORPORATE OBJECTIVES

To produce and market chemicals and caustic soda economically and in an

environmentally sound manner.

To maintain optimum levels of efficiency and productivity and to secure optimum

returns on investment.

To maximize profits from projects taken up.

To continuously upgrade the quality of human resource of the company and to

promote organization development.

To continuously improve the plant operational safety and to confirm statutory

pollution control standards.

To ensure corporate growth by expansion and diversification.

To care for community around.

BOARD OF DIRECTORS

1

Shri.N.R.SubramanianChairman & Managing DirectorThe Travancore-Cochin Chemicals LtdUdyogamandalKochi-683501

CHAIRMAN & MANAGING DIRECTOR

2

Shri K.S.Srinivas, IASSpecial Secretary to GovernmentIndustries (Investment Promotion) DepartmentGovernment of KeralaGovernment SecretariatThiruvananthapuram - 695 001.

DIRECTOR

3 Shri. E.K. Prakash

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Special Secretary (Finance),Government of KeralaGovernment SecretariatThiruvananthapuram - 695 001.

DIRECTOR

4

Shri. M.R. Karmachandran, Executive Director, Kerala State Industrial Development Corporation Limited,Keston Road, Kowdiar,Thiruvananthapuram -695003

NOMINEE DIRECTOR KSIDC

INITIAL INVESTMENT RECEIVED BY THE COMPANY

POLICIES

Quality Policy

We are committed to enhance customer satisfaction by providing products and related services

complying with a continually improving Quality Management System

Health & Safety Policy

TCC is committed to provide every one of its employees and the related public an accident-

free and healthy environment in its efforts to manufacture high quality products at

competitive prices. The company will comply with all statutory requirements in this regard.

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Investors Rs in crores

Government of Kerala 11.90

FACT 8.11

KSIDC 6.50

Sanmar Properties and investments 3.50

Total 30.01


The company will provide a work environment in which identified hazards are controlled, if

elimination is not feasible and will provide personal protective equipments wherever

necessary.

Accident prevention is the direct responsibility of the Line – Management and will be an

important criterion for performance appraisal. Line – Management will ensure that all safety

measures are incorporated in the operating and maintenance procedures as well as in any

process technology changes in the plant/infrastructure.

Consideration of health and safety will be given proper weightage in selection and

deployment of the personnel.

The company will ensure that health and safety aspects are given due consideration in

decision regarding purchase of plant equipments, machinery and materials.

Every employee of the company shall perform his/her job adopting Safe and proper work

methods and using appropriate Safety equipments understanding that their career

advancement is linked with SAFE performance.

Contractors, sub-contract workers, transporters and visitors entering the factory shall be

required to observe health and safety practices of the company in all their activities.

All contract jobs will be carried only through the laid down procedures with appropriate

supervision.

The company will carry out safety audits, risk assessment studies, emergency mock drills,

periodic assessment of health of its employees as well as status of environment, and

implement remedial measures.

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Employee, consumer and public awareness where necessary, will be imparted with the

required education, training and retraining on Safety and health aspects related to the

process and products.

The company will include a resume of its health and Safety performance in its annual

Reports.

Since the success of a company depends on the health and safety of its employees,

it is imperative that work place hazards be identified, appropriately evaluated and effectively

controlled to achieve this goal. Whole hearted co-operation of all is solicited for this.

Energy Policy

We, at the Travancore-Cochin Chemicals Udyogamandal are always committed to

conservation of energy by all possible means

To accomplish our mission, we strive for :

Technological upgradation to reduce specific energy consumption

Conducting energy conservation studies including energy audit and adopting the apt

measures for conserving energy

Contacting other organizations and enriching our experiences on energy conservation

Using renewable energy sources to the extent possible

Disseminating knowledge and information on energy conservation to our employees

Low energy fuels also to be tried depending upon feasibility

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Documents

The Chlor-alkali industry and chemical industry