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 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 1
1.1 General details SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION Chemical formula SF 6 Appearance Colourless, odourless incombustible gas Sublimation point 63.9 deg.c 1.2 Specifications SF 6, % by mass, min 99.80 CF 4, % by mass max. 0.05 (O 2 + N 2 ), % by mass 0.05 max Water, ppm by mass max. 15 Acidity expressed as HF.ppm by mass, 0.3 min. Hydrolysable fluorides expressed as HF 1 ppm by mass max 2
SECTION II PRODUCT APPLICATIONS Sector of Applications Electro mechanical equipment Mini substations Circuit breakers Transformers High voltage coaxial lines X-ray and microware equipment Oil impregnated paper cable Air Flow tracer 3
SECTION III INDIAN MANUFACTURER There is no producer of Sulphur hexafluoride in India at present 4
SECTION IV IMPORT/EXPORT LEVEL 4.1 Present Import level: Around 60 tonnes per annum Individual Imports of Sulphurhexafluoride Period 2002 Name of the Importers KPL International Ltd. GEC Alsthm (India) KPL International Ltd. Crompton Greaves Ltd. Asea Brown Boveri Ltd. Crompton Greaves Ltd. Kanoria Petroprods. Ltd. Inox Air Products Ltd. Quantity in tonnes Value in Rs. Country Date Port 1.100 376268 Germany 01.01.2002 to Mumbai 08.012002. 1.278 825719 Germany 01.02.2002 to Chennai 11.02.2002 0.900 307077 Germany 09.03.2002 to Mumbai 16.03.2002 0.550 215796 Germany 22.04.2002 to Mumbai 30.40.2002 1.950 751615 Germany 01.05.2002 to Mumbai 07.05.2002 1.000 410166 Germany 18.06.2002 to Mumbai 24.06.2002 0.275 99886 Germany 01.07.2002 to Mumbai 05.07.2002 6.710 2319154 S.Africa 16.08.2002 to Mumbai 22.08.2002 4.2. EXPORTS Nil 5
SECTION V PRICE TRENDS Basic price Rs.400 per kg. Taxes and duties extra as applicable 6
SECTION VI INDIAN DEMAND Indian demand : 60 tonnes per annum Indian requirement are entirely met by imports 7
SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS Elemental fluorine is not necessary for the preparation of sulphur hexafluoride, which can be made by pyrolyzing SF 3 Cl, the latter manufactured by the reaction of sulphur or a sulphur chloride with chlorine and an amine-hf complex. However, almost all method consists of burning sulphur in a stream of fluorine. Below 300 deg.c and preferably at 275 deg.c SF 6 is primary product. S + 3F 2 SF 6 Source of technology * Bhabha Atomic Research Centre Mumbai. Plant and machinery equipment and suppliers 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 Fluid Control Equipments 77/574, Mount Road, Chennai-600 006 Sri Ranga Industries SF, 739, Ramraj Nagar, Goldwins, Coimbatore-641 014 8
SECTION VIII RAW MATERIAL REQUIREMENTS AND AVAILABILITY Basis: One tonne of Sulphur hexa fluoride Sulphur Fluorine 0.4 tonne 0.71 tonne Utility Total Installed power Fuel oil 120 HP 80 litres Raw material availability Sulphur has to be imported Indian manufacturer of Fluorine gas include the following * Navin Fluorine Industries Navin Chemical Enterprises Bhestan Surat-395 023 Phone : 690250/690329/690527 Telex : 0188-210 NFI IN 9
SECTION IX GLOBAL SCENARIO Global demand Around 20 million pounds per annum. World's largest producer:- Allied Signal is the world's largest producer of Sulphur hexafluoride with an installed capacity 8 million lbs per annum. Other Global producers * Solvay & Cie S.A.Belgium * Atochem., France * Rhone Poulenc Industries SA., France * AGA Gas GmbH Technische Gase., Germany * Dutsche Solvay - Werke GmbH., Germany * Kali-Chemie AG., Germany * Asahi Glass Co. Ltd.,Japan * Hashimoto Chemicals Inds. Co. Ltd.Japan * Hashimoto Chemicals Inds. Co. Ltd.Japan * Kanto Denka Kogyo Co. Ltd.,Japan * Imperial Chemical Industries Plc.UK * Air Products & Chemicals Inc.,USA * Ausimont USA, Inc.USA * Allied Chemical Corpn.USA * First Continental International (NJ) Inc.,USA 10
SECTION X DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS Economic capacity Project cost : 15 tonnes per annum : Rs.289 lakhs Assessment of project cost 1. Land S.No. Description Cost Rs.in lakhs 1.1 Cost of land of 2 acre at Rs.5.5 lakh per acre 11.00 1.2 Cost of levelling, laying internal roads/fencing and compound wall 1.10 2. Building Subtotal 12.10 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 120 sq.m.at Rs.4500/sq.m. 5.40 Subtotal 15.00 3. Cost of Plant & Machinery S.No. Description Cost Rs.in lakhs 3.1 Cost of basic plant and machinery 70.00 3.2 Instrumentation and control 5.25 3.3 Pipelines and valves 7.00 3.4 Structurals for erection 3.50 Subtotal 85.75 3.5 Octroi, excise duty, sales tax, etc.at 12% 10.29 3.6 Packaging and insurance charges (2%) 1.72 3.7 Transportation charges (2%) 1.72 3.8 Machinery stores and spares (2%) 1.72 3.9 Foundation charges (2%) 1.72 3.10 Installation charges (2%) 1.72 Total cost of plant and Machinery 104.62 11
4. Technical know-how fees Rs.25 lakhs 5. Miscellaneous fixed assets S.No. Description Cost Rs.in lakhs 5.1. Electrification 8.00 5.2. Steam boiler and auxillaries 18.00 5.3. Water storage tank, borewell etc. 6.00 5.4. Fuel storage tank 5.00 5.5. Laboratory equipment 4.00 5.6. Office machinery & equipment 4.00 5.7. Material handling equipment, packaging machinery, 3.00 weigh balance, etc. 5.8. Diesel generator 12.00 5.9. Effluent treatment 9.00 Total 69.00 6. Preliminary & Pre-operative expenses: S.No. Description Cost Rs.in lakhs 6.1. Preliminary expenses 7.00 6.2. Pre-operative expenses:- 6.2.1 Establishment 4.00 6.2.2 Rent rates and taxes 4.00 6.2.3 Travelling expenses 6.00 6.2.4 Interest and commitment charges on borrowings 10.00 6.2.5 Insurance during construction period 7.00 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 38.00 7. Provision for contingency Rs. 17.75lakhs 8. Working capital margin Rs. 7.25 lakhs 9. Total project cost Rs.289 lakhs 10. Means of Finance Promoter's contribution Term loan from financing institutions Total project cost Rs.116 lakhs Rs.173 lakhs Rs.289 lakhs 12
11. Financial statements A Variable cost Rs. in lakhs Raw material and utilities 10.33 Spares and maintenance 6.28 Selling expenses 5.63 Total variable cost (A) 22.23 B Fixed cost Salaries and wages 12.00 Interest on term loan and working capital loan 35.00 Depreciation 15.89 Administrative expenses 3.38 Total fixed cost (B) 66.26 C. Total cost of production (A+B) 88.49 D. Selling price per kg. (in Rupees) 750 E. Annual sales turnover 112.50 F. Net profit before tax (E-C) 24.01 G. Breakeven point in % 73 13
SECTION XI SWOT ANALYSIS Strength Weakness Opportunity Threat Growing demand Absence of commercially proven indegeneous technology Technology development Imports 14
SECTION XII FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATION Sulphur hexafluoride is a potent greenhouse gas, facing possible restriction under the global warning treaty signed in Kyoto. Allied signal is reported to be examining ways to switch fluorine to other outlets in the event of sulphur hexafluoride being curbed. Indian requirements are likely to met by imports in near future 15
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