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ZEOLITE

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT LEVEL SECTION V PRICE DETAILS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY

AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS SECTION XI SWOT ANALYSIS SECTION XII FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS

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SECTION - I

PRODUCT CHARACTERISTICS AND SPECIFICATION

1.1. General details Chemical name ]Sodium Alumino Silicate Chemical formula Na12(AlO2.SiO2.)12 27H2O Grade Detergent grade Appearance Free Flowing Powder Molecular weight 2190 Colour White Mean particle size 4 to 6 micron Bulk density 25 to 30 lb/ft3 Weight loss at 800 deg.C 18 to 22% flowing powder pH of 1% dispersion 10.1 to 11.1 flowing powder Ion exchange capacity 5.6 meq./g. Zeolite (7.0

meq./g. anhydrous Zeolite Calcium exchange capacity 300 mg. CaCO3/g. Zeolite

(anhydrous basis) 1.2. Special characteristics Zeolite-4A, is used for low/non-waste technology in detergent industry, and has the following characteristics. *. Higher sequestering power even at higher temperature. *. Alkali reaction with pH less than 12. *. Average particle size less than 4 micron and maximum size not exceeding 20 micron. This has made it suitable to pass through the mesh size of clothes and preventing graying thereby. *. Due to the cubic shape with rounded corners and edges of Zeolite crystals, Zeolite-4A would not remain on fabrics and are easily removed on rinsing. *. The unwanted water soluble molecules from the dirt do not finish up on the other articles but are absorbed on Zeolite particles. *. Zeolite-4A coagulates the colloidal particles and pigments causing removal from the aqueous phase.

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*. During the deposition of sparingly soluble compounds, Zeolite 4A particles act in competition with the textile fabrics and reduces incrustation of the laundry. *. Zeolite 4A does not show fertilising effect. *. Biological degradation of linear alkyl benzene sulphonate does not interfere by the presence of Zeolite A. *. Zeolite 4A particulates tend to form aggregates with other sewage constituents and are largely eliminated in the pre sedimentation of sewage treatment. *. Toxicologically Zeolite 4A is safe. The acute toxicity is given as LD50 of 10 gm/kg. (mouse, oral intake) and toxicity to water organism is greater than 100 mg/1. * Uniform, molecular level size *. High surface area (350 to 1000 m2/g) *. High adsorption capacities even at low adsorbate concentrations (0.2 to 0.4 cm/g.) *. Qualitative change in adsorption surface from highly polar or hydrophilic to non polar organophilic or hydrophobic surface by changing Si/Al ratio. Acidity can be manipulated by Si/Al ratio. *. Pore dimension and adsorption properties can be manipulated by different cations. *. High thermal and hydrothermal stability can withstand temperature upto 800 Deg C even in presence of steam. *. Zeolite 4A are environmentally safe.

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1.3. Product specification Commercial form

Dried powder

Impurities Ash < 3 ppm Fe total < 300ppm Fe free < 50 ppm

Solubility Water, Alkali None Acid Under decomposition Capacity @ 25 deg.C. > 160 mg CaO/g (atro)

Average particle size < 5 micron Sieve residue(>50 micron sieve by mocker)

0.30%

Bulk density 400g/lit. Tapped density 500 g/lit Density 2.00 g/cm3 Ignition loss(1 hr @800 deg.C.) 19 to 21% Atro content 79 to 81% Relative brightness >95% pH of 5% suspension 11 Crystalline type A Zeolite (X-ray diffraction method)

Min.95%

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SECTION - II

PRODUCT APPLICATIONS Zeolite 4A is used as detergent builder General details Zeolite 4A have major industrial applications as adsorbent, ion exchanger and catalyst. By its ion exchange property, it can be used as a detergent builder. Zeolite 4A is used as builder in detergent. The single largest use of Zeolite A is as detergent builder, to soften detergents by removing Calcium and Magnesium. Zeolite 4A is the best substitute for Sodium Tri poly phosphate (STPP) because it is environmentally safe and also has excellent ion exchange capacity.

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SECTION - III

INDIAN MANUFACTURERS * Henkel SPIC India Ltd., (Formerly known as SPIC Fine Chemicals Ltd.) Peralam Main Road, Thirunallar, Karaikal-609 607. Office: Temple Tower, Third Floor, No.672 (New), 476/6 (Old) , Anna Salai, Nandanam, Chennai-600 035. Background details of Henkel Spic India Ltd.,

Henkel Spic India, was initially incorporated as Spic Fine Chemicals and got its present name in April 1996. The company was promoted jointly by Tamil Nadu Petroproducts Ltd (SPIC Group Company), Chennai and Henkel, Germany. The German collaborator provided the technology for the plant situated at Karaikal, Union Territory of Pondicherry. Henkel ranks third in the world in the manufacture of Zeolite/ Detergents after Levers and Procter and Gamble. The installed capacity of the plant is 15,000 tonnes per annum each for detergent powder and detergent bar and 10,000 tonnes per annum of Zeolite 4A. The detergent products of SPIC Fine Chemical has been launched, under the Trade name `Zymo'. These products are the first phosphate free, Zeolite based detergent bars and powders to be introduced in the country. Name Change The company's name has been changed from SPIC Fine Chemicals Limited to Henkel SPIC India Ltd. with effect from 3rd April, 1996 thereby identifying the Foreign Collaborator, who are pioneers in the field of detergents and allied products, more closely with the company. The company has not been doing well since its inception. Being a new and unknown entrant and given the supremacy of Nirma and Hindustan Lever in the detergent market. Henkel Spic took time to establish itself. Initially, to sustain itself, the company also manufactured Surf for Hindustan Lever at its plant. Henkel SPIC India Ltd., has acquired Calcutta Chemicals Co., and Detergent India Ltd., which are subsidiaries of Shaw Wallace Ltd., and which produce and market the `Margo' and `Chek' brands of soap, respectively.

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Exports Company has successfully made some inroads in exporting Detergents & Zeolite to Oman, Iran and Far East markets. Negotiations are also on with various Henkel Companies around the world for export of Zeolite. Based on trial order export of Zeolite, to Iran & Oman the Company was able to successfully secure repeat orders as the product was well accepted both in terms of quality and performance. The company continues to constantly explore export market for detergents and Zeolite. After a trial export order of 500 tonnes . to Iran, approval has been granted recently, by the Iranian Govt. authorities for incorporation of Zeolite in detergent formulations. This would lead to an offtake of 2000 tonnes per annum. * Hindustan Lever Ltd., Chemicals Division, ICT Link Road, B.D. Sawat Marg, Chakala, Andheri (E), Bombay - 400 099. Installed capacity : 6250 tonnes per annum Production level Around 4000 tonnes per annum The entire production is used for captive consumption. * Chemicals India, 17, Ahmednagar Indl.Estate, Nagar Poona Road, Ahmedabad 414 005, Maharashtra.

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* Dinesh Chandra Industries 330, Narshi Natha St., Mumbai-400 009.. Products : Zeolite A (Detergent grade) * National Aluminium Company (NALCO)

Damanjodi, Orissa. Installed capacity: 10000 tonnes per annum

Installed capacity:

Indian Installed Capacity

Around 30000 tonnes per annum

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SECTION - IV

IMPORT/EXPORT LEVEL

Present import level Small quantity Present export level Around 1000 tonnes per annum

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SECTION - V

PRICE DETAILS Basic price Rs.32 per kg Taxes and duties Extra at actuals

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SECTION - VI

INDIAN DEMAND Factors in favour of Zeolite 4A Preferred builder for detergent A general problem in washing is the greying of laundry caused by redeposition of soil during repeated wash cycles. Zeolite 4A can minimise this effect by adsorption of molecularly dissolved matter and by heterocoagulation with soil. Another problem is dye transfer to non coloured textiles which is enhanced by a high concentration of sodium ions in the wash water. Againm, Zeolite 4A can reduce this effect by adsorption of dissolved dyes or heterocoagulation with pigment dyes. Compared with water soluble builders Zeolite 4A releases fewer sodium ions and consequently is the preferred builder for detergents designed specifically for brightly coloured clothing (`colour detergents'). Furthermore, Zeolite 4A increases the efficiency of bleaching agents by the removal of metal ions in the wash and supports the foam suppressing action of soaps. Zeolite as replacement for STPP in India Though, it is evident that STPP has a few advantages over Zeolite, Zeolite could still be preferred over STPP in view of the fact that the phosphates have the effect of causing pollution as explained earlier. It has to be recognised that Zeolite A can not be the sole substitute as builder in the non phosphate detergent formulation, as it would not contribute to soil suspension, alkalinity and binding Magnesium effectively. When Zeolite A is used in combination with buffer like Sodium carbonate and soil suspension anti redeposition agents like Sodium carboxy methyl cellulose in the presence of co-builders like citrate, it can have almost equivalent cleaning agent as the old high phosphate formulations. While India is yet to formally ban the use of STPP, there are expectations of a phase out on account of the progressive introduction of stringent water pollution regulations.

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Demand Level for Zeolite-4A A number of detergent units were contacted to ascertain the demand level for Zeolite amongst the detergent units. Though a number of units particularly in the small scale sector do not consume Zeolite, the medium and large scale units generally do so. There appears to be considerable awareness amongst them about the relevance of Zeolite in detergent formulations. Replacement market for Zeolite-4A Since Zeolite A is only the replacement product for STPP, the demand for Zeolite would depend on the share of the STPP in detergents that could be replaced by Zeolite. Though Zeolites as builders have now entered the Indian fabric wash detergent scene, they will continue in their current minor role in formulations. The reason for this is that condensed phosphates are the most efficient builders known and have other useful functions besides their water softening role. Zeolites also adversely affect processability of spray dried powders and have a narrower operating window for processing. In syndet, bars they adversely affect bar building leading to poor in use properties. Growth rate in demand The growth rate in demand for Zeolite 4A in indigenous market can be considered to be around 10% per annum, considering the fact that Zeolite-4A has to gain its market share by displacing STPP usage to some extent. Since there is no likelyhood of ban of the use of STPP in the immediate future, the STPP is likely to largely hold its place. Export growth rate is considered as 10% per annum.

Indian estimated demand for Zeolite A

Around 10000 tonnes per annum

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SECTION - VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Process chemistry The preparation of Zeolite 4A starts with gel formation. The gel is defined as a hydrous metal aluminosilicate prepared from aqueous solutions of alkali metal silicate and aluminate. Analysis of many aluminosilicate gel samples showed that Si/A1 ratio always exceeds one, whereas Na/Al ratio is close to one. Aluminium in gel skeleton is coordinated 4-fold within the common (Si, Al,)) framework whereas alkaline cations compensate excess negative charges of aluminium oxygen tetrahedera. The gel is subjected to crystallization in the temperature range of ambient to 175 deg.C or sometime upto 300 deg.C. The growth of Zeolite first requires the formation of a nucleus. The smallest structural secondary building units are the single 4 or 6 membered rings, which after sufficient induct on period exceeds critical size to form nucleous. NaOH + NaAl(OH)4 + Na2SiO3 (aqueous) (aqueous) (aqueous) Naa(AlO2)b + (SiO2)c + NaOH + H2O (gel) Nax(AlO2) x (SiO)2)y H2O + solution Zeolite A The above system can be presented in simplified form of equation as follows. NaOH + NaSlO2 + Na2O.SiO2 + H2O ----->Na2O.Al2O3. 1.8 SiO2.4.5 H2O + NaOH Zeolite A Zeolite -A being a complex compound, above equation cannot be balanced atochimetrically, but depending upon the % constituents present in different raw materials, one has to calculate the requirement of all the raw materials to get the final composition stated above. Source of technology

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* Central Salt and Marine Chemicals Research Institute, Gijubhai Badeka Marg, Bhavnagar -364 002 Plant and machinery Equipment Name of the equipment

Name of the company

Reactor Chemitherm Plants & Systems P. Ltd., 30, Anandha Street Alwarpet, Chennai-600 018 Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai-600 098, Tamil Nadu

Boiler Cethar Vessels Ltd., No.4, Dindigul High Road, Trichy Firetech Boilers Pvt. Ltd. No.211, 2nd Cross, 38th Main, B.T.M. Layout 2nd Stage, Bangalore-68

Ageing reactor Chemitherm Plants & Systems P. Ltd., 30, Anandha Street Alwarpet, Chennai-600 018 Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai-600 098, Tamil Nadu

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

Dryer The Anup Engineering Ltd., Behind 66 KV Electric Sub Station Odhav Road, Ahmedabad-382 415 ATRE Thermal Products Pvt. Ltd., Pushpa Heights, 1st Floor, Bibwewadi Corner, Pune-411 037

Pulveriser ACE Pack Machines

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23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Frigmaires Engineers PO Box 16353, 8, Janata Industrial Estate Senapati Bapat Marg Opp Phoenix Mill, Lower Parel (W) Mumbai-400 013

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SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY Raw material requirements Basis: One tonne of Zeolite 4A Sodium aluminate 0.74 tonnes Sodium silicate 0.931 tonnes Utility requirements Power 190 units per tonne of product Fuel 160 litres Water 30 K.L per tonne of product Source of raw materials availability Name of the raw materials

Name of the company

Sodium Aluminate

Eastern Chemicals,Calcutta Chandra Chemical Industries, Maharashtra Bajaj Alchem Pvt.Ltd.Calcutta

Sodium silicate Sharda Silicate & Chemical Industries,Coimbatore Sebase Chemicals P.Ltd.Madras Prabha Chemicals & Allied Products,Hyderabad Ricasil Industries,Gujarat. Kiran Silicates (P) Ltd.,Nagapatinam,

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SECTION - IX

GLOBAL SCENARIO In most of the countries, Europe, North America, Japan, in most of the detergents, the predominant builders used now are Zeolite, Carbonate and Silicate systems supported by Polyacrylate dispersants. The secondary but important role of insoluble Zeolite as a process aid in particle formation will guarantee the use of these materials for a long time. Zeolite is most widely used as builder in phosphate free laundry powders and some liquids formulations. Regionwise Consumption pattern

Western Europe 55%

Far East Asia 17% Others

3%

North America 25%

European capacity is as under.: Producers Capacity in '000 TPA Degussa, Germany 135 Henkel, Germany 80 Enimont, Italy 75 Benkiser Mira Lanza, Italy 25 RP Laviora, Spain 35 Saprolit, Belgium 40 Birac, Yugoslavia 45

SECTION X

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DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND

PROFITABILITY PROJECTIONS Economic capacity : 600 tonnes per annum Project cost : Rs.115 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs 1.1 Cost of land of 1acre at Rs.5.5 lakh per acre 5.5 1.2 Cost of levelling, laying internal roads/fencing and

compound wall

0.55

Subtotal 6.05 2. Building S.No. Description Cost

Rs.in lakhs 2.1 Factory building of area 300 sq.m. at Rs.3200/sq.m. 9.60 2.2 Non-factory building of area 70 sq.m.at Rs.4500/sq.m. 3.15 Subtotal 12.75 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs 3.1 Cost of basic plant and machinery 36.00 3.2 Instrumentation and control 2.70 3.3 Pipelines and valves 3.60 3.4 Structurals for erection 1.80 Subtotal 44.10 3.5 Octroi, excise duty, sales tax, etc.at 12%� 5.29 3.6 Packaging and insurance charges (2%) 0.88 3.7 Transportation charges (2%) 0.88 3.8 Machinery stores and spares (2%) 0.88 3.9 Foundation charges (2%) 0.88 3.10 Installation charges (2%) 0.88 Total cost of plant and Machinery 53.80

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4. Technical know-how fees Rs.2 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs 5.1. Electrification 1.20 5.2. Steam boiler and auxillaries 3.00 5.3. Water storage tank, borewell etc. 1.00 5.4. Fuel storage tank 1.00 5.5. Laboratory equipment 1.40 5.6. Office machinery & equipment 1.20 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 1.20

5.8. Diesel generator 4.00 5.9. Effluent treatment 1.50 Total 15.50 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs 6.1. Preliminary expenses 0.80 6.2. Pre-operative expenses:- 6.2.1 Establishment 0.80 6.2.2 Rent rates and taxes 1.00 6.2.3 Travelling expenses 1.20 6.2.4 Interest and commitment charges on borrowings 2.60 6.2.5 Insurance during construction period 1.60 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 8.00 7. Provision for contingency Rs. 5.95 lakhs 8. Working capital margin Rs. 14.45 lakhs 9. Total project cost Rs.115 lakhs 10. Means of Finance Promoter's contribution Rs.46 lakhs Term loan from financing institutions Rs.69 lakhs Total project cost Rs.115 lakhs

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11. Financial statements A Variable cost

Rs. in lakhs

Raw material and utilities 117.54 Spares and maintenance 3.23 Selling expenses 9.60 Total variable cost (A)

130.37

B Fixed cost

Salaries and wages 6.00 Interest on term loan and working capital loan 20.27 Depreciation 7.31 Administrative expenses 5.76 Total fixed cost (B)

39.34

C. Total cost of production (A+B)

169.71

D. Selling price per kg. (in Rupees)

32

E. Annual sales turnover

192

F. Net profit before tax (E-C)

22.29

G. Breakeven point in %

64%

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SECTION XI

SWOT ANALYSIS

Strength Ready availability of raw material

Weakness Low demand in the country

Opportunity The demand can be increased due to

environmental reasons

Threat Lack of competitiveness in the global market due to small capacity plants

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SECTION - XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATION In considering the Zeolite-4A project, the following factors have to be kept in view. * Zeolite-4A is essentially a substitute product for STPP. * In the absence of imposition of ban on use of STPP in India due to environmental reasons, the demand for Zeolite-4A is unlikely to go up substantially in quantitative terms. There is unlikely to be ban on STPP in the immediate future in the country. Considering the various aspects as above, it is necessary to have captive use for Zeolite-4A, by setting up a detergent plant along with Zeolite-4A plant. Since Detergent is highly competitive market, it is necessary to carefully study the capability of the project promoter to operate in the competitive detergent market.