BRONOPOL SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS

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1 BRONOPOL CONTENTS SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT TRENDS SECTION V PRICE TRENDS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIALS REQUIREMENTS 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 1

2 SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS Alternate names Appearance Bronopol Bromerol 2-Bromo-2 nitropropane- 1-3-diol, Bronidiol Bronopl is a white or almost white slightly hydrosopic crystalline powder with a faint characteristic odour Chemical Formula C 3 H 6 BrNO 4 Molecular weight 200 Melting point Odour About 130 deg.c It does not impart any colour, taste or odour to the end product. Stability and Compatibility Incompatible with aluminium or iron containers. But stable in contact with tin or stainless steel. Toxicity levels LD50 value orally in mice; 350 mg/kg. and in rats:400 mg/kg. It is safe and economical. Specifications Sulphate ash Not more than 0.1% Water Not more than 0.5% 2-Bromo2-Nitro propane- 1,3-diol Not less than 97% 2

3 SECTION II PRODUCT APPLICATIONS Bronopol is an antimicrobiol agent, highly active against a wide range of Bacteria. It is effective in very low concentration of 0.02% to 0.05% and is used as a preservative in Pharmaceutical liquid, oral preparations, 3

4 There are number of units in small scale sector. SECTION III INDIAN MANUFACTURERS The manufacturers of Bronopol include the following * Acharya Chemicals W-41 & 42,MIDC Indl Estate,Morivali Village, Ambernath ,Dist Thane,Maharashtra * BEC Chemicals Pvt Ltd Plot No-24,MIDC,Roha,Dist.Raigad, Maharashtra * Chemco 8, Industrial Estate,K.Pudur, Madurai-7 * Jayco Chemical Industries Kashimira, P.O.-Mira Dist. Thane * Kumar Organic Products Pvt. Ltd., KOP Research Centre Pvt. Ltd. (An Innovative Technology Company) 202, B-Wing, Mittal Towers, M.G. Road, Bangalore * Nikhila Drugs & Pharmaceuticals, N0.77, Sangeeth Nagar, Somajiguda, Hyderabad * Peninsula Pharma-Chem (P) Ltd. EP 27,SIDCO Indl Estate,Mariamalai Nagar, Chengai Anna Dist,T.N * TTK HealthCare Ltd. (Formerly known as TTK Pharma Ltd.) No.8, Old Trunk Road, Madras * Trisya Industries 154/A, Phase II IDA, Cherlapally R.R. Dist. A.P. 4

5 Indian installed capacity Around 75 tonnes per annum SECTION IV IMPORT/EXPORT TRENDS Import level : Nil Export : Around 500 Kgs per annum 5

6 SECTION V PRICE TRENDS Price Rs.550 per kg Taxes and duties Extra as applicable 6

7 SECTION VI INDIAN DEMAND Application sector and leather chemicals. Used in small quantities as preservative in pharmaceuticals, cosmetics Use pattern: In the range of 0.02 to 0.05% of the formulated product. Demand Indian demand for Bronopol Around 35 tonnes per annum. The projected growth rate in demand Around 9 to 11% per annum. T.T.K.Pharma is reported to hold around 40% of the Indian market. 7

8 Process sequence SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS Add and mix Caustic Soda, Calcium Chloride, Nitromethane and liquid Bromine and subject to cold reaction at a temperature between 10 to 15 deg.c. The mixing period can be between 45 to 60 minutes. After the completion of mixing and reaction, crude Bronopol would be obtained. The crude Bronopol would be dissolved in solvent which can be Carbon tetrachloride, Acetone or Ethyl acetate. After dissolving in the solvent, Activated carbon could be added to improve the colour of the product. After adequate stirring, Activated carbon would be filtered in Neutche filter, using Hyflosuper cell as the filter aid. The filtrate would be subjected to distillation to separate the solvent. The distilled slurry would be taken to a centrifuge for the separation of Bronopol as wet cake. The wet cake would be taken to a tray drier for drying. Source of technology * Sup Consultancy Services, C-701,Bhakti Complex, 120,Link Road, Kandarpada, Dahisar(w), Mumbai

9 Major plant and machinery and suppliers Name of the equipment Reactors Name of the company Chemitherm Plants & Systems P. Ltd., 30, Anandha Street Alwarpet, Chennai Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai , Tamil Nadu Boilers 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 Mixer ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore Drycon Systems F-14, IInd Main Road, Anna Nagar East Chennai

10 Nutche filter Aristo Engineers J-3, Vikas Udyog Nagar, Behind Kasturi Tiwer Phatak-Goddeo Road, Bhayander (E), Thane A.V. Industrial Plastics Corp. 202/Him Shikhar, 1st Floor, Plot No.113 Sector 21, Near Apna Bazar Nerul, Navi Mumbai Bifriends Engineering Works Klm College, Sant Narsi Mehta Marg, Parsiwadi, Ghatkopar (W), Mumbai Vacuum tray dryer Centrifuge V.P. Engineering Plot No.25/8, MIDC, Opp. Hindustan Petroleum, Turbhe, Navi Mumbai Hydrabad Met Chem. Pvt. Ltd., 34, C.I.E., Phase II, Gandhinagar, Opp. IDPL Colony Hyderabad Spark Engineers Pvt. Ltd., 5/332, State Bank Colony II Salem

11 SECTION VIII RAW MATERIAL REQUIREMENTS AND AVAILABILITY Raw material requirements Basis: One tonne of Bronopol Sodium Hydroxide Calcium Chloride Liquid Bromine Formaldehyde Para Formaldehyde Nitromethane Carbon tetra chloride Sodium sulphate Activated Carbon Ethyl Acetate 0.4 tonne 0.83 tonne 1.4 tonnes 1.4 tonnes 0.23 tonne 0.63 tonne 1.33 tonnes 0.47 tonne tonne 800 litres The above raw materials are adequately available in the country. Source of supply of raw materials Name of the raw materials Caustic soda Calcium chloride Liquid Bromine Formaldehyde Para formaldehyde Nitromethane Carbon tetrachloride Sodium sulphate Ethyl sulphate Name of the company Tamil Nadu Petroproducts Ltd.,Tamil Nadu Chemfab Alkalies, Pondicherry Chemplast Ltd., Mettur,Tamil Nadu DCW Ltd., Arumuganeri PO, Tamil Nadu Amritha Chemicals, Namakkal Dist., Tamil Nadu Karthik Chemicals, Pudukkotai Dist., Tamil Nadu Madurai Meenakshi & Co., Madurai, Tamil Nadu Shri Shakti Industries, Chennai, Tamil Nadu Vinayaka Crystal Products,Madurai, Tamil Nadu Nandu Chemical Industries,Hubli, Karnataka South India Bromine & Allied Products, Tuticorin Sree Rayalaseema Petrochemicals Ltd., Andhra Pradesh Southern Synthetics, Ranipet Claro India Ltd.,Tamilnadu Trisya Industries, Andhra Pradesh Chemplast Sanmar Ltd., Tamil Nadu Anand Chromates, Chennai Dharamsi Morarji Chemicals Co. Ltd., 11

12 SECTION IX GLOBAL SCENARIO Bronopol is one of the important Bromine based products. The total production of Bromine in the world is around 0.5 million tonnes per annum There are several Bronopol producers in the world. Manufacturers with bromine compounds production facilities near their bromine producing plants have lower production costs than non bromine producers because Bromine shipping and handling costs are minimised and by product inorganic bromides can be readily processed to recover bromine values. Global producers * Angus Chemical Co., (Subsidiary of the Dow Chemical Company) 1500 E. Lake Cook Road, Buffalo Grove, IL 60089, USA. * Chemetall Chemical Products Inc., Fine Chemical Division USA 12

13 SECTION X DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS Economic capacity : 30 tonnes per annum of Bronopol Project cost : Rs.81 lakhs Assessment of project cost Land S.No. Description Cost Rs.in lakhs 1.1 Cost of land of 0.5 acre at Rs.5.5 lakh per acre Cost of levelling, laying internal roads/fencing and 0.28 compound wall 2. Building Subtotal 3.03 S.No. Description Cost Rs.in lakhs 2.1 Factory building of area 300sq.m. at Rs.3200/sq.m Non-factory building of area 60sq.m.at Rs.4000/sq.m Subtotal Cost of Plant & Machinery S.No. Description Cost Rs.in lakhs 3.1 Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection 1.1 Subtotal Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%)

14 3.9 Foundation charges (2%) Installation charges (2%) 0.54 Total cost of plant and Machinery Technical know-how fees Rs.1.50 lakhs 5. Miscellaneous fixed assets S.No. Description Cost Rs.in lakhs 5.1. Electrification Steam boiler and auxillaries Water storage tank, borewell etc Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, 0.8 weigh balance, etc Diesel generator Effluent treatment 0.8 Total Preliminary & Pre-operative expenses: S.No. Description Cost Rs.in lakhs 6.1. Preliminary expenses Pre-operative expenses: Establishment Rent rates and taxes Travelling expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment - Total Provision for contingency Rs lakhs 8. Working capital margin Rs lakhs 9. Total project cost Rs.81 lakhs 10. Means of Finance Promoter's contribution Rs.33 lakhs 14

15 Term loan from financing institutions Total project cost Rs.49 lakhs Rs.81 lakhs 11. Financial statements 11.I. Cost of production Variable cost Raw material and utilities Spares and maintenance Selling expenses Total variable cost Rs.84.5 lakhs Rs.1.97 lakhs Rs.7.5 lakhs Rs lakhs Fixed cost Salaries and wages Interest on term loan and working capital loan Depreciation Administrative expenses Total fixed cost Total cost of production (fixed cost and variable cost) Rs.6 lakhs Rs lakhs Rs.4.7 lakhs Rs. 4.5 lakhs Rs.29.99lakhs Rs lakhs Selling price per kg. (in Rupees) Rs.500 per Kg Annual sales turnover (Rs.in lakhs) Rs.150 lakhs 11.3 Net profit before tax (Rs.in lakhs) (annual turnover-production cost) Rs lakhs 11.4 Breakeven point in % at capacity utilisation level 54% 15

16 SECTION X SWOT ANALYSIS Strength Weakness Opportunity Threat Growing demand Competitive conditions and mushroom growth Exports Severe price competition 16

17 SECTION XII FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS Bronopol is an ideal investment opportunity in the small scale sector in the pharmaceutical industry. In view of the vital nature of the application of the product, the demand is likely to go up steadily in the coming years The project can be set up, after ensuring that the project promoter would have adequate capability in penetrating competitive conditions in the market and in entering the export market. 17

SULPHUR HEXA FLUORIDE

SULPHUR HEXA FLUORIDE CONTENTS SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURER SECTION IV IMPORT/EXPORT LEVEL SECTION V PRICE TRENDS