NANDINI CONSULTANCY CENTER

CHEMICAL INDUSTRY
INSIGHTS

MISSED OPPORTUNITIES BY INDIAN CHEMICAL

INDUSTRY
A FEW CASE STUDIES AMONGST MANY

INSIGHT AND ANALYSIS

FOR THE CHEMICAL INDUSTRY
WWW.NANDINICHEMICAL.COM

AUGUST,2021

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MISSED OPPORTUNITIES BY INDIAN CHEMICAL INDUSTRY - A FEW CASE STUDIES
AMONGST MANY

A few case studies given below of unexploited opportunities would highlight the
cause for concern about the future growth profile of Indian chemical industry. All
these projects have high level of relevance to Indian industrial and economic
growth pattern.

Rutile grade Titanium dioxide pigment :

Rutile grade Titanium dioxide pigment finds application in paint and coatings,
plastics , paper and multi various industries. Present Indian demand is around
2,50,000tonne per annum and Indian import is around 2,20000 tonne per annum.
There is only one producer by chloride process in Kerala. The raw material is
ilmenite and chlorine ,which are plentifully available in India. No new project is in
the advanced stage of planning or implementation at present.

L-Lysine / L-Lysine HCl :

L-Lysine HCl is an amino acid ,extensively used in poultry / cattle feed as input
and in pharmaceutical formulations. The feedstock is starch and hydrochloric acid
, which are available in India. The present import is around 60,000 tonne per
annum. The product is not produced in India and no new project is in the advanced
stage of planning or implementation in the country.

Citric acid :

Citric acid is used extensively in pharmaceutical ,food and other industries. The
present import is around 100000 tonne per annum. Two units which were set up
several years back were closed due to uneconomic capacity. The feedstock is
starch, which is available. No new project is in the advanced stage of planning or
implementation in the country.

Silicon metal :

Silicon metal is used as raw material for silicone compounds, alloying agent for
aluminium alloy, as feedstock to the production on polycrystalline silicon (for use in
electronic and solar energy sector) , as raw material for silicon tetrachloride, ethyl
silicate and fumed silicaThe Indian import is around 70,000 tonne per annum The
feedstock is quartz silica, which is available. No new project is in the advanced
stage of planning or implementation in the country.

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MISSED OPPORTUNITIES BY INDIAN CHEMICAL INDUSTRY - A FEW CASE STUDIES
AMONGST MANY

Alkyl Ketene Dimer Wax ( AKD Wax )

Alkyl ketene dimer wax is used as an industrial sizing agent for paper to increase
the hydrophobic properties of paper. The feedstock is stearic acid ,which is
adequately available. The present import is around 9,000 tonne per annum. No
new project is in the advanced stage of planning or implementation in the country.

Vinyl Acetate Monomer ( VAM) :

Vinyl acetate monomer (VAM) is an important intermediate used in the making of a

number of polymers and resins for adhesives, coatings, paints, films, textiles and
other end-products. The most important and largest use of VAM is in the
manufacture ofhomopolymer polyvinyl acetate. The other use of VAM is in the
production of polyvinyl alcohol, which is produced from polyvinyl acetate. The
feedstock is ethylene or ethyl alcohol and acetic acid. The present import is
around 180,000 tonne per annum. Two units were operating in India earlier and
both have been closed for whatever reasons. No new project is in the advanced
stage of planning or implementation in the country.

Algae biofuel :

Algae is a quick growing crop that has 25 to 30% oil content,. It needs only
sunlight and carbon dioxide for growing. Poor quality water is adequate for algae
cultivation ..Algae biofuel can be used as fuel. The by products include value added
chemicals such as ethanol, butanoletc. by fermentation of algae biomass. Several
projects are successfully operating in USA and other countries In several regions in
India, integrated algae based complex can be set up , where algae fuel can be
produced and used for small scale power generation to meet the local
requirements. This would be an elegant way of integrating agricultural operation
with industrial operation. No new project is in the advanced stage of planning or
implementation in the country.

Methanol from municipal solid waste :

Methanol has widespread applications in multivarious industries. Indian import of

methanol is more than 2million tonne per annum. Project for production of
methanol from municipal solid waste is now successfully operating in Canada. A
new project is being planned in Europe. Municipal solid waste is available in large
quantity in India. No new project is in the advanced stage of planning or
implementation in the country.

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MISSED OPPORTUNITIES BY INDIAN CHEMICAL INDUSTRY - A FEW CASE STUDIES
AMONGST MANY

Di methyl ether ( DME)

Dimethyl ether is a fuel that can be used alone or blended with LPG for use as
domestic and industrial fuel. DME is extensively produced in China from methanol.
By setting up several DME projects in India of economic size, import of crude oil /
natural gas / LPG can be reduced to a considerable extent. DME is aeco friendly
fuel. The requirement of methanol can be met by import, until such time that
domestic methanol capacity would be built up using as coal or other feedstock. No
new project is in the advanced stage of planning or implementation in the country.

Olefins (ethylene & propylene ) from methanol :

India is unable to set up several ethylene and propylene based projects due to
scarce supply of ethylene and propylene in the country, which are difficult to
import in large quantity. For example, India is importing more than 2million tonne
per annum of PVC as PVC capacity is not being built up due to non availabilityof
ethylene. So many other examples can be pointed out. Several ethylene /
propylene projects from methanol of economic capacity can be set up in different
parts of the country and several ethylene / propylene based projects can be set up.
Number of ethylene/propylene projects based on methanol are successfully
operating in China . The requirement of methanol can be met by import , until
such time that domestic methanol capacity would be built up using as coal or other
feedstock. No new project is in the advanced stage of planning or implementation
in the country.

AdipicAcid :

Adipic acid is used in the production of plasticizers, unsaturated polyurethane resins

etc. The feedstock for adipic acid is benzene , which is adequately available in
India . The import of adipicacid is around 35000 tonne per annum . . No new
project is in the advanced stage of planning or implementation in the country.

Acrylamide Monomer

Acrylamide Monomer is used in water treatment, paper industry, mineral processing

etc. Indian import is round 15000 tonne per annum. The feedstock is acrylonitrile
,which has to be imported. No new project is in the advanced stage of planning or
implementation in the country.

Bisphenol A

BisphenolA is used in the production of epoxy resin. The present Indian import is
around 80000 tonne per annum. The feedstock is phenol and acetone ,which are
produced in India. But, phenol and acetone may have to be imported as they are in
short supply. No new project is in the advanced stage of planning or
implementation in the country.

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MISSED OPPORTUNITIES BY INDIAN CHEMICAL INDUSTRY - A FEW CASE STUDIES
AMONGST MANY

Chlorosilane

Chlorosilanes are a group of reactive, chlorine-containing chemical compounds,

related to silane and used in many chemical processes. Each such chemical has at
least one silicon-chlorine bond. Chlorosilanes can be classified as organic
chlorosilanes and inorganic chlorosilanes..Most of the silicone derivatives (fluids,
elastomers and resins) are made from dichlorodimethylsilane. Indian import is
around 5000 tonne per annum.Organic chlorosilanes are not produced in India.
Silicon tetra chloride, which is an inorganic chlorosilane, is presently produced in
India. Basic silicone monomers and fluids and products such as siloxanes are
imported. Silicon and methyl chloride are the feedstock. No new project is in the
advanced stage of planning or implementation in the country.

Epichlorohydrin

Epichlorohydrin is used in the production of epoxy resin and in miscellaneous

sector. The basic feedstock for production of epichlorohydrin throughglycerine
route is refined glycerin and HClgas, which are available in India. The present
import is around 70000 tonne per annum. One project is in the planning stage
.There is scope for more projects, considering the growth potential in demand.

Styrene Monomer

Styrene Monomer is used in the production of polystyrene, ABS resin and in

number of other industries. The feedstock is ethylene or ethanol and benzene. The
Indian import is around 0.8 million tonne per annum. No new project is in the
advanced stage of planning or implementation in the country.

Xanthan Gum

Xanthan gum is used in food , personal care, pharmaceutical and other sector.
Indian import is around 6000 tonne per annum. Xanthan gum is produced from
carbohydrates such as glucose, sucrose, soluble starch.. No new project is in the
advanced stage of planning or implementation in the country.

Xylitol :

Xylitol is used as bulk sweetener, mainly in non carcinogenic confectionary and in

oral hygiene preparations like toothpaste and mouth wash.The production process
for xylitol from straw has been developed, using a bio process by Danish Institute
of Biotechnology. The present import is around 300 tonne per annum .No new
project is in the advanced stage of planning or implementation in the country.

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MISSED OPPORTUNITIES BY INDIAN CHEMICAL INDUSTRY - A FEW CASE STUDIES
AMONGST MANY

Speciality chemicals for lithium ion battery cell :

Government of India is putting forth extensive efforts to promote electric vehicles

in India,. For the electric vehicles, lithium ion battery is an essential component.
Lithium ion battery cell is not being produced in India. While new projects for
lithium ion battery cell are being planned, such project require number of speciality
chemicals such as lithium carbonate, lithium hydroxide, electrolytes, separators,
high purity natural graphite etc. . No new project is in the advanced stage of
planning or implementation in the country.

Invitation for webinar :

Nandini Consultancy Centre,a firm of chemical engineers and chemical business

consultants based in Chennai and Singapore (www.nandinichemical.com) will be
organizing a webinar on 12th June,2021 (Saturday) between 6 pm. and 7.30pm. to
discuss the missed investment opportunities in Indian chemical industry. Those
interested in participating in the webinar may contact Nandini Consultancy Centre ,
nandinichemical@gmail.comTel : 044-43540719 / 24916037

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MISSED OPPORTUNITIES BY INDIAN CHEMICAL INDUSTRY - A FEW CASE STUDIES
AMONGST MANY

NANDINI CONSULTANCY CENTER

Global Information Source for Chemical, Pharmaceutical and Allied Industries

www.nandinichemical.com

For general enquiries and information, please contact us at

info@nandinichemical.com

Nandini Consultancy (S) Pte. Ltd.

105, Cecil Street,
0601, The Octagon,
Singapore 069534
T: +65-6827 4511
F: +65-6827 9601
info@nandinichemical.com

Nandini Consultancy Center Pvt. Ltd.,

M60/1, 4th Cross Street,
Besant Nagar,
Chennai 600 090 India
T: +91-44-43511945
info@nandinichemical.com

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