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ABHILASH CHEMICALS & PHARMACEUTICALS PVT LTD. Pre-Feasibility Report for Proposed Expansion of Synthetic Organic Chemicals plant at Naickenpatti Village, Madurai East Taluk, Madurai District, Tamilnadu MAY 2016 Kadam Environmental Consultants www.kadamenviro.com Environment f or Development

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ABHILASH CHEMICALS &

PHARMACEUTICALS PVT

LTD.

Pre-Feasibility Report for Proposed Expansion of Synthetic Organic Chemicals plant at Naickenpatti Village, Madurai East Taluk, Madurai District, Tamilnadu

MAY 2016

Kadam Environmental Consultants w w w . ka d a m en v i r o . c o m

Envi ronment for Deve lopment

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PFR FOR PROPOSED EXPANSION OF

SYNTHETIC ORGANIC CHEMICALS

MANUFACTURING PLANT AT MADURAI, TAMIL NADU QUALITY SHEET

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 2

ABHILASH CHEMICALS & PHARMACEUTICALS PVT LTD.

Pre-Feasibility Report for Proposed Expansion of Synthetic Organic Chemicals plant at Naickenpatti Village, Madurai East Taluk, Madurai District, Tamilnadu © Kadam Environmental Consultants (‘Kadam’), May 2016

This report is released for the use of the M/s Abhilash Chemicals & Pharmaceuticals Pvt. Ltd,

Regulators and relevant stakeholders solely as part of the subject project’s Environmental Clearance

process. Information provided (unless attributed to referenced third parties) is otherwise copyrighted

and shall not be used for any other purpose without the written consent of Kadam.

PROJECT DETAILS

Name of

Publication

Pre-feasibility Report for Proposed Expansion of Synthetic Organic Chemicals plant at

Naickenpatti Village, Madurai East Taluk, Madurai District, Tamilnadu Proposed Expansion of

Synthetic Organic Chemicals Manufacturing Plant at Madurai, Tamil Nadu

Project Number 1624102105 Report No. 1 Version 1 Released May 2016

Prepared &

Managed By

Jitixa Upadhyay &

Anand Kunte Released By Sangram Kadam

CONTACT DETAILS

Vadodara (Head Office)

871/B/3, GIDC Makarpura, Vadodara, India – 390 010.

E: [email protected]; T:+91-265-3001000; F: +91 265 300106

Delhi / NCR

SPAZE IT PARK, Unit no. 1124, 11th Floor, Tower B 3, Sector 49, Near Omaxe City Centre mall,

Sohna Road, Gurgaon -122 002 (Haryana)

E: [email protected];T: 0124-4242430; M:+91-98998-04300

DISCLAIMER

Kadam has taken all reasonable precautions in the preparation of this report as per its auditable quality plan.

Kadam also believes that the facts presented in the report are accurate as on the date it was written. However, it

is impossible to dismiss absolutely, the possibility of errors or omissions. Kadam therefore specifically disclaims any

liability resulting from the use or application of the information contained in this report. The information is not

intended to serve as legal advice related to the individual situation.

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PHARMACEUTICALS PVT. LTD.

PFR FOR PROPOSED EXPANSION OF

SYNTHETIC ORGANIC CHEMICALS

MANUFACTURING PLANT AT MADURAI, TAMIL NADU CONTENTS

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 3

CONTENTS

1 EXECUTIVE SUMMARY ................................................................................. 6

1.1 INTRODUCTION AND BACKGROUND ...................................................................... 6

1.2 PROPOSED PLANT FEATURES AND PRODUCTION CAPACITY .............................................. 6

1.3 WATER ................................................................................................... 7

1.4 EFFLUENT GENERATION, TREATMENT AND DISPOSAL .................................................... 7

1.5 POWER REQUIREMENT ................................................................................... 7

1.6 AIR EMISSIONS ........................................................................................... 7

1.6.1 Flue Gas Stacks .................................................................................. 7

1.6.2 Process Vents ..................................................................................... 8

1.7 SOLID/HAZARDOUS WASTE GENERATION AND DISPOSAL................................................ 8

2 INTRODUCTION .......................................................................................... 9

2.1 IDENTIFICATION OF PROJECT AND PROJECT PROPONENT ................................................ 9

2.2 BRIEF DESCRIPTION OF NATURE OF THE PROJECT ....................................................... 9

2.2.1 Technology ...................................................................................... 10

2.2.2 Company Vision and Strategy ................................................................ 10

2.3 NEED FOR THE PROJECT AND IT’S IMPORTANCE TO THE COUNTRY AND/OR REGION .................... 10

2.4 DEMAND SUPPLY GAP .................................................................................. 11

2.5 IMPORT VS. INDIGENOUS PRODUCTION ................................................................ 12

2.6 EXPORT POSSIBILITY ................................................................................... 12

2.7 EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT ........................... 12

3 PROJECT DESCRIPTION ............................................................................. 13

3.1 TYPE OF PROJECT INCLUDING INTERLINKED AND INTERDEPENDENT PROJECTS, IF ANY ................ 13

3.1.1 Type of Project ................................................................................. 13

3.1.2 Interlinked and Interdependent Project .................................................... 13

3.2 LOCATION (MAP SHOWING GENERAL LOCATION, SPECIFIC LOCATION AND PROJECT BOUNDARY &

PROJECT LAYOUT) WITH COORDINATES ........................................................................ 13

3.3 DETAILS OF ALTERNATE SITES CONSIDERED AND THE BASIS OF SELECTING THE PROPOSED SITE,

PARTICULARLY THE ENVIRONMENTAL CONSIDERATIONS GONE INTO SHOULD BE HIGHLIGHTED ................ 16

3.4 SIZE OR MAGNITUDE OF OPERATION................................................................... 16

3.5 PROCESS DESCRIPTION WITH PROCESS DETAILS (SCHEMATIC DIAGRAM / FLOW CHART SHOWING THE

PROJECT LAY OUT, COMPONENT OF THE PROJECT ETC. SHOULD BE GIVEN) .................................... 16

3.6 RAW MATERIAL REQUIRED ALONG WITH ESTIMATED QUANTITY, LIKELY SOURCE, MARKETING AREA OF

FINAL PRODUCTS, MODE OF TRANSPORT OF RAW MATERIAL AND FINISHED PRODUCT. ......................... 16

3.6.1 Raw Materials Required ....................................................................... 16

3.6.2 Transportation details of Raw Materials .................................................... 16

3.7 RESOURCE OPTIMIZATION / RECYCLING AND REUSE ENVISAGED IN THE PROJECT, IF ANY, SHOULD BE

BRIEFLY OUTLINED ............................................................................................. 18

3.8 AVAILABILITY OF WATER ITS SOURCE, ENERGY/POWER REQUIREMENT AND SOURCE SHOULD BE GIVEN 18

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PFR FOR PROPOSED EXPANSION OF

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3.8.1 Water consumption ............................................................................ 18

3.8.2 Power Requirement ............................................................................ 20

3.9 QUANTITY OF WASTE TO BE GENERATED (LIQUID AND SOLID) AND SCHEME FOR THEIR MANAGEMENT

/DISPOSAL ...................................................................................................... 21

3.9.1 Liquid Management ............................................................................ 21

3.9.2 Solid / Hazardous Waste ...................................................................... 21

3.10 SCHEMATIC REPRESENTATION OF THE FEASIBILITY DRAWING WHICH GIVE INFORMATION OF EIA

PURPOSE 22

4 SITE ANALYSIS ......................................................................................... 23

4.1 CONNECTIVITY ......................................................................................... 23

4.2 LAND FORM, LAND USE AND LAND OWNERSHIP ........................................................ 24

4.3 TOPOGRAPHY (ALONG WITH MAP) ...................................................................... 24

4.4 EXISTING LAND USE PATTERN (AGRICULTURE, NON-AGRICULTURE, FOREST, WATER BODIES (INCLUDING

AREA UNDER CRZ)), SHORTEST DISTANCES FROM THE PERIPHERY OF THE PROJECT TO PERIPHERY OF THE

FORESTS, NATIONAL PARK, WILD LIFE SANCTUARY, ETC SENSITIVE AREAS, WATER BODIES (DISTANCE FROM THE

HFL OF THE RIVER), CRZ. IN CASE OF NOTIFIED INDUSTRIAL AREA, A COPY OF THE GAZETTE NOTIFICATION

SHOULD BE GIVEN. ............................................................................................. 24

4.5 EXISTING INFRASTRUCTURE ............................................................................ 24

4.6 SOIL CLASSIFICATION .................................................................................. 24

4.7 CLIMATIC DATA FROM SECONDARY SOURCES ........................................................... 25

4.7.1 Temperature .................................................................................... 25

4.7.2 Wind ............................................................................................. 25

4.7.3 Rainfall ........................................................................................... 25

4.7.4 Cloud Cover ..................................................................................... 25

4.7.5 Humidity ......................................................................................... 25

4.8 SOCIAL INFRASTRUCTURE AVAILABLE ................................................................... 26

5 PLANNING BRIEF ...................................................................................... 27

5.1 PLANNING CONCEPT (TYPE OF INDUSTRIES, FACILITIES, TRANSPORTATION ETC) TOWN AND COUNTRY

PLANNING/DEVELOPMENT AUTHORITY CLASSIFICATION ....................................................... 27

5.2 POPULATION PROJECTION .............................................................................. 27

5.3 LAND USE PLANNING (BREAK UP ALONG WITH GREEN BELT ETC.) ..................................... 27

5.4 ASSESSMENT OF INFRASTRUCTURE DEMAND (PHYSICAL AND SOCIAL) ................................ 30

5.5 AMENITIES / FACILITIES ............................................................................... 30

6 PROPOSED INFRASTRUCTURE .................................................................... 31

6.1 INDUSTRIAL AREA (PROCESSING AREA) ................................................................ 31

6.2 RESIDENTIAL AREA (NON-PROCESSING AREA) ......................................................... 31

6.3 GREEN BELT ............................................................................................ 31

6.4 SOCIAL INFRASTRUCTURE .............................................................................. 31

6.5 CONNECTIVITY (TRAFFIC AND TRANSPORTATION ROAD/ RAIL/METRO/WATER WAYS ETC.) ............ 31

6.6 DRINKING WATER MANAGEMENT (SOURCE & SUPPLY OF WATER) ...................................... 31

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PFR FOR PROPOSED EXPANSION OF

SYNTHETIC ORGANIC CHEMICALS

MANUFACTURING PLANT AT MADURAI, TAMIL NADU CONTENTS

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 5

6.7 SEWAGE SYSTEM ....................................................................................... 32

6.8 INDUSTRIAL WASTE MANAGEMENT ..................................................................... 32

6.9 POWER REQUIREMENT & SUPPLY/ SOURCE ............................................................. 32

7 REHABILITATION AND RESETTLEMENTS (R&R) PLAN .................................... 33

7.1 POLICY TO BE ADOPTED (CENTRAL/STATE) IN RESPECT OF THE PROJECT AFFECTED PERSONS INCLUDING

HOME OUSTEES, LAND OUSTEES AND LANDLESS LABOURERS (A BRIEF OUTLINE TO BE GIVEN) ................. 33

8 PROJECT SCHEDULE AND COST ESTIMATE .................................................... 34

8.1 LIKELY DATE OF START OF CONSTRUCTION AND LIKELY DATA OF COMPLETION (TIME SCHEDULE FOR THE

PROJECT TO BE GIVEN) ......................................................................................... 34

8.2 ESTIMATED PROJECT COST ALONG WITH ANALYSIS IN TERMS OF ECONOMIC VIABILITY OF THE PROJECT.

34

8.2.1 Fixed Capital .................................................................................... 34

9 ANALYSIS OF PROPOSAL ........................................................................... 36

9.1 FINANCIAL AND SOCIAL BENEFITS WITH SPECIAL EMPHASIS ON THE BENEFIT TO THE LOCAL PEOPLE

INCLUDING TRIBAL POPULATION, IF ANY, IN THE AREA ......................................................... 36

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU EXECUTIVE SUMMARY

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 6

1 EXECUTIVE SUMMARY

1.1 Introduction and Background

This Pre-feasibility report is part of documentation filed by Abhilash Chemicals and Pharmaceuticals

Pvt Limited (ACPL) as part of the Environment Clearance (EC) Process, a mandatory regulatory

clearance required from the Ministry of Environment and Forests (MoEF) prior to expansion of the

company’s existing Synthetic organic chemicals manufacturing plant located at Naickenpatti Village,

Madurai East Taluk, Madurai District, Tamilnadu State.

Abhilash Chemicals and Pharmaceuticals Pvt Ltd (ACPL) [Formerly known as ‘Abhilash Chemicals Pvt

Ltd’] was promoted in 1994 as a Speciality Chemical manufacturing company to primarily produce

import substitute Performance chemicals (Synthetic tanning agents, Coating agents, Fat liquors) for

Leather Tanning and Textile processing. It is today a well-known Chemical supplier / Technical service

provider for the Indian Leather Industry - active across all major leather tanning centers across India.

Coating agents manufactured by the company are also sold to textile processors and Paint industries.

The company’s Synthetic tanning agents are exported to China and other markets in South East Asia.

The company ventured into Pharmaceutical API manufacturing by setting up a production block for the

manufacture of Metformin HCL (anti-diabetic API) which started operation in 2005. Today the

company is one of the globally reputed manufacturers of this product with the product sold in over 20

markets worldwide. All of the company’s manufacturing operations are ISO 14001 / OSHAS 18001

certified. The Pharma division is ISO 9001 / GMP certified and has a Certificate of Suitability (COS)

from the European Directorate for the quality of medicines and healthcare (EDQM), France for

Metformin HCL.

The company proposes to expand its existing manufacturing facilities in view of the following:

There is increasing demand for Metformin HCL (anti-diabetic API) manufactured by ACPL

There is demand amongst the company’s international customer base for another generic

bulk API – paracetamol (analgesic API) – which presents ACPL with an excellent opportunity

to leverage its manufacturing / operational capabilities and grow into a reputable international

generic bulk API supplier

There is a need to supplement the Speciality Chemicals business vertical by establishment of

state of the art production facilities for production of Water based polymeric emulsions (End

use: In Paint, Textile industries) and Bronopol (End Use: As anti-microbial in Industrial water

treatment, Cosmetics, Pharma, Speciality chemical formulations etc)

1.2 Proposed Plant Features and Production Capacity

The proposed expansion project is for manufacturing of varieties of synthetic organic chemicals. The

proposed project is located S.F No. 27/(1,2,3,4), 34/(2,3,4,5,6A,6B), 33/(8,9), 28/8, 29/(1,2),

31/(1A,1B,1C,3), 30/(1,4), 32/2, 37/(8A,8B,8C,8F,8G,8H) 35/(3A,3B,4D,4E,4A,4B,4C) of Naickenpatti

Village, Madurai East Taluk, Madurai District, Tamilnadu. The estimated cost of the proposed project is

INR ~22 Crores. The Total Production capacity after proposed expansion will be 3125 MT/Month.

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU EXECUTIVE SUMMARY

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 7

1.3 Water

The fresh water requirement after proposed expansion will be 270.3 KLD. Water will be sourced from

onsite borewells.

1.4 Effluent Generation, Treatment and Disposal

Salt Recovery System

Water containing almost pure sodium chloride (NaCl) from manufacturing process of paracetamol will

be processed in salt recovery system consisting of Multiple Effect Evaporation (MEE) and reuse of

condensates. Crystallized salt will be sold as byproduct.

Distillation

Process water from evaporative crystallization of Metformin will be processed in a distillation system

and condensate will be reused in utility. Distillation residue will be sent to TSDF/AFR/Cement plant.

Effluent Treatment plant

Utility blowdown from cooling tower and boiler will undergo primary treatment followed by

Evaporation and reuse of condensate in utility. ETP sludge will be sent to TSDF/AFR/Cement plant.

Sewage Treatment Plant

Domestic wastewater will be treated in STP and used for gardening within site premises.

1.5 Power Requirement

The power requirement for the proposed expansion of facility will be met through power supplied by

Tamilnadu Electricity Board (TNEB). Total estimated connected electrical load for the proposed

manufacturing unit after expansion is around 3000 HP. In addition to existing gensets of 75 KVA, 125

KVA, 200 KVA and 400 KVA the unit will install additional gensets totaling to 1500 KVA for emergency

power back up during grid failure.

1.6 Air Emissions

1.6.1 Flue Gas Stacks

In existing plant flue gas emission sources are boilers (2 Nos.), Incinerator (1 No.), Spray Dryer (1

No.), DG Sets (4 Nos.).

After expansion, there will be addition of thermic fluid heater (1 No.), boilers (3 Nos.) and DG sets (3

Nos.)

Adequate stack height will be provided to all flue stacks, based preferably on the Environment

Protection Rules, or in the absence of specific guidance in regulations, good engineering practice.

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU EXECUTIVE SUMMARY

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 8

1.6.2 Process Vents

There will be 3 process vents. One vent will be attached to the Spray dryer (in existing plant), one

vent will be attached to the central absorption system in paracetamol plant (proposed) and another

vent will be attached to the central absorption system in the Bronopol plant (proposed).

All process vents will be adequately scrubbed with cyclonic scrubber / wet alkali (or) water scrubber to

ensure that process emissions do not reach the atmosphere. Adequate stack height will be provided to

all flue stacks, based preferably on the Environment Protection Rules, or in the absence of specific

guidance in regulations, good engineering practice.

1.7 Solid/Hazardous Waste Generation and Disposal

Hazardous Solid wastes generated at ACPL expansion will be handled as per Hazardous Waste

(Management, Handling and Transboundary Movement) Rules, 2008

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU INTRODUCTION

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 9

2 INTRODUCTION

2.1 Identification of Project and Project Proponent

Abhilash Chemicals and Pharmaceuticals Pvt Ltd (ACPL) [Formerly known as ‘Abhilash Chemicals Pvt

Ltd’] was promoted in 1994 by technocrats. ACPL currently manufactures Synthetic organic chemicals

at its ISO 14001 / OSHAS 18001 certified plant located in Naickenpatti Village, Madurai East Taluk,

Madurai District, Tamilnadu State.

The company manufacturers Speciality chemicals for Leather processing, Textile processing and Paint

industries. The company is also a leading manufacturer of Metformin HCL (anti-diabetic Pharma API).

The company proposes to expand its manufacturing facilities in the same manufacturing site at

Naickenpatti Village near Madurai which is 2,09,290 sq.m (~ 52 acres)

The proposed project involves increase in capacity of Metformin HCL (Pharma API), creation of new

production plant to manufacture Paracetamol API (Pharma API). In addition the company proposes to

create production plants to make Water based emulsion polymers (Speciality chemicals) and Bronopol

(Fine chemical)

2.2 Brief Description of nature of the Project

The proposed expansion project is for manufacturing of various synthetic organic chemicals in addition

to those already being manufactured. The proposed project will be located at S.F No. 34/6A,

Naickenpatti Village, Madurai East Taluk, Madurai District, Tamil Nadu state. The estimated cost of the

proposed project is INR 22 Crores. Total plot area is 2,09,290 sq.m. The detailed production capacities

are given as below in Table 2-1.

Table 2-1: Production Capacities

S.

No. Name of Products

Production Capacity in MT/Month

Existing Proposed Total

Products

1 Synthetic tanning and coating agents 300 0 300

2 Fat liquors 100 0 100

3 Water based polymeric emulsions 0 500 500

4 Metformin Hydrochloride 300 700 1000

5 Paracetamol 0 1200 1200

6 Bronopol 0 25 25

Total 700 2425 3125

By-Products

1 Acetic acid (dilute) 0 2400 2400

2 NaBr solution 0 55 55

3 NaCl Salt 0 800 800

Total 0 3255 3255

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU INTRODUCTION

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 10

2.2.1 Technology

The project will use state of the art process design, plant & machinery and engineering. The project

will use the latest safety measures / water recovery concepts and pollution abatement measures.

The company’s accumulated experience in the production of Metformin HCL, Polymers will be applied

along with state of the art engineering / automation / process safety measures.

Paracetamol will be manufactured from basic commodity ingredients using clean synthesis techniques

and will involve unique recovery, recycling strategies to minimize raw material and water usage.

2.2.2 Company Vision and Strategy

In the next 5 years, ACPL’s vision is to become a global participant in the Pharmaceutical & Specialty

Chemical industries and be recognized, admired for setting high standards in safety, cGMP / regulatory

compliance and business practices.

ACPL is already well placed in the Leather Chemical vertical and also has a good customer base in the

Textile processing and paint manufacturing sectors. The company will aim to leverage its existing

market base and commercial infrastructure to roll out a product portfolio from the Water based

polymeric emulsion plant and also develop into a recognized supplier of Bronopol.

In the last few years the company has become a globally recognized supplier of Metformin HCL API in

the Pharmaceutical vertical. The company's vision is to create a state of the art supply base for

Metformin HCL in terms of safety, efficiency, capacity and the highest cGMP / regulatory compliance.

The company also intends manufacture paracetamol using a unique process and achieve highest cGMP

/ regulatory compliance. The proposed expansion project will enable ACPL to establish a foothold in

this product which has a huge global consumption potential.

2.3 Need for the project and it’s importance to the country and/or region

The proposed expansion project involves the setting up state of the art, global capacity plants to

produce Active pharmaceutical ingredients (APIs) both of which are on the WHO list of essential

medicines.

The proposed capacity addition in Metformin will help ACPL build on its existing base and grow in

stature internationally.

Paracetamol will be produced from basic, commodity raw materials produced in India and thus

eliminating dependence on imported raw materials. The plant will employ unique recovery, recycling

strategies that will make it a model, environmentally friendly plant producing a critical essential API.

The proposed establishment of plants for water based polymeric emulsions and Bronopol will leverage

the company’s existing process capabilities and allow the company’s Speciality chemicals business unit

to expand into new growth areas and secure its future.

ACPL is already a reputed tax payer, generator of valuable foreign exchange and EXIM commerce

through Tuticorin Seaport. The present ACPL plant is the only operating industry in the immediate

area and has been a valuable source of stable, local employment for hundreds of people for over two

decades. The proposed expansion will have a significant positive impact on all the above.

ABHILASH CHEMICALS &

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PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU INTRODUCTION

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 11

The need for this project is thus justified and is important for the region and the nation.

2.4 Demand Supply Gap

Metformin HCL

Annual global demand for Metformin HCL has been estimated between 40,000 – 45,000 MT with

global prescription demand for Metformin HCL growing at above 10% per annum - thus requiring at

least 4000 – 4500 MT additional supply per year.

In addition, the increasing stature of Metformin HCL as a safe, proven, cost effective, gold standard

drug of choice for Diabetes treatment has resulted in various favorable developments such as a) the

inclusion of Metformin HCL in almost all Government funded / aided Drug supply program worldwide

b) rapid growth in volume demand for Metformin HCL in emerging markets.

More than 90% of the global production capacity for Metformin HCL bulk drug is located in India on

account of various factors including India’s strong methylamine supply chain, very well established

process / product quality and the significant amount of Finished dosage form manufacturing taking

place in India for export markets.

ACPL is already amongst the leading manufacturers of the product and already exports more than

60% of Metformin HCL it produces to over 20 countries worldwide. The company is very well placed to

utilize the additional capacity to expand into newer markets and clientele.

Paracetamol

Paracetamol (Also known as Acetaminophen) is widely used to treat pain and fever across the world.

It is available as a prescription medicine and as OTC products. The estimated global consumption is in

excess of 150,000 MT / year. Paracetamol is also used, in increasing volume (estimated currently at

15,000 MT / year) as a raw material to manufacture other API and dye intermediates. Paracetamol

demand as a Pharma API is set to grow steadily over the next decade with conservatively estimated

annual volume growth of 7,500 MT – 10,000 MT.

Recent developments in the supply chain and technology enable the manufacture of Paracetamol

starting from Para nitro chloro-benzene (PNCB) in an environmentally sustainable manner. Also, a

gradual erosion has taken place in the difference in cost / pricing between the leading Chinese and

Indian producers consequently making Indian paracetamol more sought after in the global markets

and also making Import of Chinese product into India highly unattractive. The above factors indicate

that product from a state of the art plant from ACPL will be in good demand.

Others

Water based emulsion polymers are key raw materials for paint industries. The Indian paint market is

estimated to be in excess of 30,00,000 MT of which more than 50% are water based 'emulsion' paints.

There is also a continuing steady shift from solvent-borne to water-based paints. There are numerous

small / medium scale water based paint manufacturers in Tamilnadu and other parts of south India

almost fully dependent on Emulsion polymers transported down from other parts of India where

freight is a considerable part of the cost. There will be good demand for products from a modern

polymeric emulsion plant capable of supplying a basic range of emulsion polymers.

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU INTRODUCTION

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 12

Bronopol has a worldwide estimated annual requirement of 5000 MT. Customers include

manufacturers of Industrial water treatment chemicals, Agrochemical formulation manufacturers,

Leather preservative manufacturers, cosmetics & topical pharmaceutical manufacturers. There is good

demand identified for high quality Bronopol complying with pharmacopoeial specifications which ACPL

will be well positioned to supply.

2.5 Import vs. Indigenous Production

All requirements for Metformin HCL in India are currently being met by local manufacturers including

ACPL.

Paracetamol is sometimes imported from China although majority of the requirement in India is

currently being met by local manufacturers.

Water based polymeric emulsions used for Paint manufacture and in Textile finishing are almost 100%

manufactured by local manufacturers.

Bronopol is made by several small / medium manufacturers in India. It is also imported in bulk or in

the form of formulations.

2.6 Export Possibility

The prime focus area of this proposed expansion activity is in the creation of state of the art

production facilities for export oriented manufacture of two bulk APIs i.e. Metformin HCL (which the

company already manufactures) and Paracetamol (which the company intends to start

manufacturing). Metformin HCL and Paracetamol are amongst generic APIs from India which are

already very well accepted and in demand from the Global Pharmaceutical Industry. So there is

definite Export possibility supported by growing demand from the Domestic market.

2.7 Employment Generation (Direct and Indirect) due to the project

Proposed expansion unit would generate employment both directly and indirectly, also due to

development of downstream industries. A large portion of these is likely to trickle down to the local

people. Besides this, suitably qualified persons from the study area will get employment on permanent

basis for actual operation of the plant in the form of skilled or semi-skilled, or unskilled labour.

Thus, substantial amount of employment and income are expected to be generated for the local

people. Hence, it can be ascertained that the project is going to have significant employment and

income effects.

During construction phase: 50 persons

During Operation phase: 500 persons (Existing + Proposed)

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU PROJECT DESCRIPTION

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 13

3 PROJECT DESCRIPTION

3.1 Type of Project including interlinked and interdependent projects, if any

3.1.1 Type of Project

The proposed project is for manufacturing of synthetic organic chemicals that is covered under

Category – 5 (f) “A” as per new EIA notification vide gazette no. S.O. 1533 dated 14th September

2006.

3.1.2 Interlinked and Interdependent Project

There is no project interlinked or interdependent with the proposed project.

3.2 Location (map showing general location, specific location and project

boundary & project layout) with coordinates

The proposed expansion facility is located at Naickenpatti Village, Madurai East Taluk, Madurai District,

Tamilnadu. The total plot area of the unit is 2,09,290 sq.m. Site Boundary Map on google image is

presented at Figure 3-1. Site Layout Map of present and proposed project area is presented as

Error! Reference source not found..

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Figure 3-1: Site Boundary Map on Google Image

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Figure 3-2: Site Layout Map

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3.3 Details of alternate sites considered and the basis of selecting the proposed

site, particularly the environmental considerations gone into should be

highlighted

Not applicable as proposed expansion will be done in open land of existing premises.

3.4 Size or Magnitude of Operation

Abhilash Chemicals and Pharmaceuticals Pvt ltd (ACPL) plans to expand its production of synthetic

organic chemicals from 700 MT / month to 3125 MT / month. The proposed expansion facility will

occupy an area of 18,152 m2. 34.9% of the land will be used for green cover (73,267 m2). The

estimated cost of the proposed facility is INR 22 Crores. Details pertaining to the production capacity

have already been provided in Table 2-1.

3.5 Process Description with Process Details (Schematic Diagram / Flow Chart

showing the project lay out, component of the project etc. should be given)

Process description with process flow diagram of all products are given in Annexure 4 of Form-1.

3.6 Raw material required along with estimated quantity, likely source, marketing

area of final products, mode of transport of raw material and finished product.

3.6.1 Raw Materials Required

Several raw materials are required for the manufacture of synthetic organic chemicals at Abhilash

Chemicals and Pharmaceuticals Pvt Ltd. These include organic and inorganic compounds and maybe

used in gas, liquid and solid forms. The required quantity of raw materials will be obtained from

different suppliers across the country and may also be imported. Raw materials and finished products

will be transported primarily through road. Important raw materials and their proposed storage

capacities are as listed below.

Storage Details are provided in Annexure 5 of Form-1.

3.6.2 Transportation details of Raw Materials

Table 3-1: Transportation Details of Raw Material

S. No Chemical Name State Source Mode of Transport

1 Dicyandiamide Solid Imported By Road from Seaport

2 Dimethylamine hydrochloride Solid Domestic By Road

3 Mix Xylene Liquid Domestic By Road

4 Activated Carbon Solid Domestic By Road

5 Hyflosupercel Solid Domestic By Road

6 Methanol

Liquid Domestic / Imported By Road (Tanker)

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S. No Chemical Name State Source Mode of Transport

7 Hydrochloric acid (30% w/w) Liquid Domestic By Road (Tanker)

8 Para Nitro chloro benzene Solid Domestic / Imported By Road

9 Caustic Lye (48 % w/w) Liquid Domestic By Road (Tanker)

10 Reduction catalyst Solid Domestic By Road

11 Acetic anhydride Liquid Domestic By Road (Tanker)

12 Sodium hydrosulphite Solid Domestic By Road

13 Nitromethane Liquid Domestic By Road

14 Formaldehyde (37% w/w) Liquid Domestic By Road (Tanker)

15 Caustic soda (flakes) Solid Domestic By Road

16 Liquid bromine Liquid Domestic / Imported By Road

17 Phenol (hydrated) Liquid Domestic / Imported By Road (Tanker)

18 Naphthalene Solid Domestic By Road

19 Melamine Solid Domestic By Road

20 Urea Solid Domestic By Road

21 Sulphuric acid Liquid Domestic By Road (Tanker)

22 Additives Solid / Liquid

Domestic By Road

23 Acrylic monomers Liquid Domestic / Imported By Road

24 Emulsifiers Liquid Domestic By Road

25 Caesin Solid Domestic By Road

26 Caprolactum Solid Domestic By Road

27 Diethanolamine Liquid Domestic By Road

28 NC cotton Solid Domestic By Road

29 Plasticizer Liquid Domestic By Road

30 2 Ethyl hexyl acetate Liquid Domestic By Road

31 n-butanol Liquid Domestic By Road

32 Glycol Liquid Domestic By Road

33 Carboxylic acid anhydride Solid Domestic By Road

34 Refined vegetable oil Liquid Domestic By Road (Tanker)

35 Sulpho-chlorinated paraffin Liquid Domestic By Road

36 Non-ionic surfactants Liquid Domestic By Road

37 Anionic surfactants Solid Domestic By Road

38 Wax / Additives Liquid / Solid

Domestic By Road

39 Styrene Liquid Domestic / Imported By Road

40 Butyl acrylate Liquid Domestic / Imported By Road

41 2 Ethyl hexyl acrylate Liquid Domestic / Imported By Road

42 Surfactant Liquid Domestic By Road

43 Vinyl acetate monomer Liquid Domestic / Imported By Road

44 Methyl methacrylate Liquid Domestic / Imported By Road

45 Potassium persulphate Solid Domestic By Road

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3.7 Resource Optimization / recycling and reuse envisaged in the project, if any, should be briefly outlined

The company shall apply state of the art concepts, engineering and process design to reduce resources required for production namely - Raw materials, fuel, Water,

Electricity and Solvents.

It is recognized that water is a precious resource and accordingly all production systems shall be conceived with the objective of reduction, stream segregation,

recycle, reuse of water.

The use of solvents will be minimized. However, wherever solvents need to be used - they will be recovered and reused using state of the art recovery techniques.

The company will also put in place systems to ensure that resource usage is monitored and resource optimization / Environmental objectives are met.

3.8 Availability of water its source, energy/power requirement and source should be given

3.8.1 Water consumption

The below Table 3-2 & Table 3-3 shows the water consumption and waste water generation figures.

Table 3-2: Water Consumption Details

Sr. No. Description Existing KLD Proposed KLD Total KLD

Process

1 Fat Liquors 1.3 0 1.3

2 Coating Agents 0.8 0 0.8

3 Water Based Polymer 0 9.2 9.2

4 Bronopol 0 1.3 1.3

5 RO Plant -I 29.2 0 29.2

i

Metformin HCL 14.2

(Ro Permeate)

0

14.2

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Sr. No. Description Existing KLD Proposed KLD Total KLD

a Synthetic Agents 7.1 0 7.1

b Washings 4.2 0 4.2

ii Cooling Tower

15 (RO Reject)

15

6 Boiler 5 2.5 7.5

7 RO Plant-II 0 216 216

i RO-II Reject Water 0 108 108

a Cooling Tower 0 83 83

b Bathing/Flushing 0 25 25

ii RO-II Permeate Water 0 108 108

a Metformin (HCL) 0 33 33

b Paracetamol 0 75 75

8 Domestic (Canteen & Flushing) 8 -3 5

Total Water Consumption & wastewater Generation 44.3 226 270.3

Table 3-3: Waste Water Generation Details

Sr. No. Description Existing KLD Proposed

KLD For Treatment to

ETP Total KLD

Treatment & Disposal Mode

Process Waters + Washings

1 Fat Liquors 1.3 0 0 1.3 Water utilized In Product

2 Coating Agents 0.8 0 0 0.8 Water utilized In Product

3 Water Based Polymers 0 9.2 0 9.2 Water utilized In Product

4 Bronopol 0 1.3 0 1.3 In NaBr solution as by product

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Sr. No. Description Existing KLD Proposed

KLD For Treatment to

ETP Total KLD

Treatment & Disposal Mode

SUB TOTAL 12.6 Total Utilized in Product / By Product

5 RO Plant -I 15 0 0 15 Used for Cooling Tower Make up

6 Metformin HCL 11.3 0 0 11.3 Reused for Synthetic Tanning Agents and for

Washings & Cleaning activities

7 Synthetic Agents 4.3 0 0 4.3 Evaporation losses via spray dryer

8 Washings 3.4 0 0 3.4 Evaporation losses via spray dryer

9 Metfomin (HCL) 0 26.3 26.3 Reused for Cooling Tower Make up after

distillation

10 Paracetamol 0 59 59 Go to Salt Recovery System and condensate

will be reused in process & Salts will be sold as by product

SUB TOTAL 119.3 Reuse / Loss within the plant premises

11 Cooling Tower 1 0 1 1 To ETP followed by MEE

12 Boiler 1 5 6 6 To ETP followed by MEE

13 Cooling Tower 0 10 10 10 To ETP followed by MEE

SUB TOTAL 17 TO ETP for Treatment followed by MEE

Domestic Waters

14 Domestic (Canteen &

Flushing) 8 -3 5 5 Domestic flushing + Canteen

15 Bathing/Flushing 0 25 25 25 Bathing water

SUB TOTAL 30 To STP for Treatment and Reuse for

gardening

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Sr. No. Description Existing KLD Proposed

KLD For Treatment to

ETP Total KLD

Treatment & Disposal Mode

Total Water Consumption & wastewater Generation

46.1 132.8 178.9

3.8.2 Power Requirement

The power requirement for the proposed facility will be met through HT supply from the grid of Tamilnadu electricity board (TNEB). Total estimated electrical load for

the proposed manufacturing unit after expansion is around 3000 HP. In addition to existing DG sets (75 KVA, 125 KVA, 200 KVA and 400 KVA) the proposed plant will

have 3 DG sets of 500 KVA each for emergency power back up.

Table 3-4: Fuel Consumption

Sr. No. Stack Attached to Capacity Stack Nos. Stack Height

Type of Fuel used Fuel consumption

Existing

1 Boiler 1.5 T/hr

1 33

Firewood 8.5 MT/ Day 2 Boiler 1.0 T/hr

3 Incinerator 200 Lit/hr Diesel 15 Lit/Hr

4 Spray dryer 300 Kg/Hr 1 16 Furnace Oil 37.5 Lit/Hr

5 D.G Set 75 KVA 1 3.3 HSD 10 Lit/Hr

6 D.G. Set 125 KVA 1 3.9 HSD 15 Lit/Hr

7 D.G Set 200 KVA 1 9 HSD 25 Lit/Hr

8 D.G. Set 400 KVA 1 9 HSD 45 Lit/Hr

Proposed

1 Thermic Fluid Heater 6 Lac K. Cal. 1 16 Furnace Oil 12.5 Lit/Hr

2 Boiler 5 T/Hr 1 30.5 Firewood 15 MT/Day

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Sr. No. Stack Attached to Capacity Stack Nos. Stack Height

Type of Fuel used Fuel consumption

3 Boiler 5 T/Hr 1 30.5 Firewood 15 MT/Day

4 Boiler 1.5 T/Hr 1 30.5 Firewood 5 MT/Day

4 DG Set 500 KVA 3 9 HSD 60 Lit/Hr each

3.9 Quantity of waste to be generated (liquid and solid) and scheme for their management /disposal

The generation of pollutants associated with the proposed expansion will be in the form of Gaseous emissions, Liquid effluent, Solid waste, and Hazardous waste.

3.9.1 Liquid Management

Details of wastewater generation, treatment scheme and disposal/reuse is given below:

Table 3-5: Waste Water Treatment Scheme

Wastewater stream Source Treatment scheme provided Remarks

Washing and Cleaning Synthetic Tanning & Coating Agents Spray Dryer -

Washing and Cleaning All other production areas - Reused back in respective process

Salt Water Paracetamol Salt Recovery system Reused back in process

Process water Metformin Distillation Reused back in utility

Utility blowdown Cooling tower and boiler Effluent treatment plant with primary

treatment and MEE

Reused back in utility

Domestic sewage Domestic Sewage Treatment Plant Gardening

Salt Recovery System

Water containing almost pure sodium chloride (NaCl) from manufacturing process of paracetamol will be processed in salt recovery system consisting of Multiple

Effect Evaporation (MEE) and reuse of condensates. Crystallized salt will be sold as byproduct.

Distillation

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Process water from evaporative crystallization of Metformin will be processed in a distillation system and condensate will be reused in utility. Distillation residue will be

sent to TSDF/AFR/Cement plant.

Effluent Treatment plant

Utility blowdown from cooling tower and boiler will undergo primary treatment followed by Evaporation and reuse of condensate in utility. ETP sludge will be sent to

TSDF/AFR/Cement plant.

Sewage Treatment Plant

Domestic wastewater will be treated in STP and used for gardening within site premises.

3.9.2 Solid / Hazardous Waste

Hazardous Solid wastes generated at Abhilash Chemical Expansion site will be maintained as per Hazardous Waste (Management, Handling and Transboundary

Movement) Rules, 2008 and will be disposed of as per the details given in Table 3-6.

Table 3-6: Hazardous Waste Generation and disposal Details

S. No. Type of Waste Hazardous Waste

Category

Quantity MT per Year

Source Treatment /

Disposal

Ex

isti

ng

Ad

dit

ion

al

To

tal

1 Used/spent oil 5.1 1.5 3.5 5 Industrial Operations using mineral/synthetic oil as lubricant in

hydraulic system

To authorized recycler 2 Wastes/Residues containing oil 5.2 0.5 1.5 2.0

3 Distillation Residues 20.3 350 860 1210 Production/Industrial Use of solvents To TSDF/AFR/

Cement industry

4 Wastes/residues (Not made

with vegetable or animal materials)

23.1 3 27 30 Industrial use of glues, cements,

adhesives and resins To TSDF/AFR/

Cement industry

5 Residues and wastes 28.1 350 1967 2317

Production/Formulation of drugs/ Pharmaceuticals & health care product

To TSDF/AFR/ Cement industry

6 Spent catalyst/Spent Carbon 28.2 15 713 728

7 Date expired, discarded and off

specification drugs 28.4 0.3 1 1.3

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8 Discarded containers/ barrels,

liners, contaminated with hazardous wastes/chemicals

33.3 60 240 300

Disposal of barrels containers used for handling of hazardous waste

chemicals

To TSDF/AFR/ Cement industry/

authorized recycler

9 Chemical sludge from waste

water treatment 34.3 3 18 21

Purification and treatment of air, water & waste water from the processes in this schedule and common industrial effluent

treatment Plants (ETPs)

To TSDF/AFR/ Cement industry

3.10 Schematic Representation of the Feasibility Drawing which give Information of EIA Purpose

A drawing (i.e. Site Layout Plan) explaining the salient project features with an index giving area break up is attached as

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Figure 3-2

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4 SITE ANALYSIS

4.1 Connectivity

The project site is located at Naickenpatti Village, near Madurai Tamilnadu. A brief summary of

connectivity of the site by Road / Air / Rail is as per below:

By Road

The project is located with excellent road access to the nearest city, Madurai via State highway 72 (~

1 KM – E) [Madurai city (Corporation limit) - 11 KM (SSW)]. It is also located very close to the below

listed roadways which connect it all major cities and markets in Tamilnadu and other parts of South

India.

State highway 72A (Madurai to Alagarkovil to Melur Road) - 5.1 KM (SW)

State highway 72 (Madurai to Natham Road) ~ 1 KM (E)

National highway 7 (Varanasi to Kanyakumari Road) - 25 KM (W)

National highway 45B (Trichy to Tuticorin Road) - 21.3 KM (E)

Distances of project site from some key cities and locations in South India are as per below:

Tuticorin (Nearest seaport) 175 km (S)

Chennai (Capital city, Seaport, Airport) 460 km (NE)

Major cities in Tamilnadu : Dindigul - 61 km (NW), Erode - 200 KM (NNW), Coimbatore –

217 KM (NW), Salem - 240 KM (N), Tirunelveli - 187 km (SSW), Tiruchirapalli (Trichy) - 120

KM (NE)

Major cities in South India : Cochin, Kerala - 292 km (W), Trivandrum, Kerala - 336 km

(SSE), Bangalore, Karnataka - 440 km (N)

By Air

The nearest airport is Madurai International Airport which is 36 km (SSW) away. Madurai airport is one

of the largest airports in Tamilnadu with daily connectivity to Chennai, Bangalore, Hyderabad and

Mumbai. It also offers international flights to Colombo and Dubai.

Other airports that may be used are Tiruchirapalli international airport which is 140 km (NE) away.

Chennai international airport (which is the largest airport in the state and one of the biggest airports in

India) is approx. 460 km (NE) away.

By Rail

The nearest railway station in Madurai junction which is located - 18.5 km (SSW) away. It is graded

A1 by the Indian railways (as amongst the 100 busiest stations in India). It is extremely well

connected to Chennai (with multiples trains running daily) (which is south India's largest train station)

and also connected to other cities in Tamilnadu and south India. There are also several weekly trains

to Maharashtra, Andhra Pradesh, Telangana, and Karnataka. Other nearby railway stations include

Dindigul, Tiruchirapalli and Tirunelveli.

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4.2 Land Form, Land Use and Land ownership

The proposed project is an expansion and will be taken up in existing site in which company has been

operational since 1994. The land is completely owned by the project proponents and is already

compounded / fenced and part of company’s premises. The site and surroundings are non-agricultural

and the total plot area of the existing unit is 2,09,290 m2 and proposed expansion within the plot area

will be 18,152 m2 (8.7% of total plot area). Total Green Belt after proposed expansion in the site

premises will be 73,267 m2 (34.9% of total site area).

4.3 Topography (along with map)

The city of Madurai lies on the flat and fertile plain of the river Vaigai, which runs in the northwest-

southeast direction through the city, dividing it into two almost equal halves. The Sirumalai and

Nagamalai hills lie to the north and west of Madurai. The district is endowed with a semi-arid tropical

climate.

4.4 Existing land use pattern (agriculture, non-agriculture, forest, water bodies

(including area under CRZ)), shortest distances from the periphery of the

project to periphery of the forests, national park, wild life sanctuary, etc

sensitive areas, water bodies (distance from the HFL of the river), CRZ. In

case of notified industrial area, a copy of the Gazette notification should be

given.

Existing Land use pattern: Industrial

Table 4-1: Distance of Project Site from Sensitive Areas

Area Distance in km Direction

Alagarmalai Hills R.F ~ 0.150 N

Kiluvamalai R.F ~ 5 W

Table 4-2: Distance of Project site from Water Bodies

Water

body Distance in km Direction

Periyar Canal (Kallandhiri) 1.7 S

Poigaikaraipatti Village Pond 0.6 SW

4.5 Existing Infrastructure

The site is already well developed as it is an existing one. Supporting infrastructure such as approach

roads, drainage, parking, electricity etc are already in place.

4.6 Soil classification

The district is characterized by Red soil, Black clayey soil and alluvial soil. The predominant soil type is

red soil.

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4.7 Climatic data from secondary sources

Information presented in subsequent paragraphs is from the Indian Meteorological Department (IMD),

Long Term Climatological Tables, 1961-1990, Madurai (A). These tables give useful information about

a region’s weather, since they are collected over a 30-year period.

4.7.1 Temperature

Mean daily maximum temperature is recorded in the month of May at 40.8°C. January is generally the

coldest month, with minimum morning temperature at 18.4°C.

4.7.2 Wind

Table 4-3: Predominant Wind Direction

Predominant First Second Third

Month Morning Evening Morning Evening Morning Evening

January N NE NE E NW N

February N NE NE E NW SE

March NE E N NE E SE

April NE SE N E E S

May NW SE N S,W NE, W E

June W W NW NW SW S, SE

July NW W W NW N S, SE, SW

August NW W W S N SE

September NW W N SE W S

October N NE NW E NE SE

November N NE NE E NW N, SE

December N NE NE E NW N

4.7.3 Rainfall

The total rainfall in year is observed to be 833.9 mm. Distribution of rainfall by season is 25.7 mm in

winter (January, February), 111.5 mm in summer (March, April, May), 325.3 mm in South West

monsoon (June, July, August, September) and 367.4 mm in North East monsoons (October, November

& December).

4.7.4 Cloud Cover

The area remains cloudy between the months of June – September, which is the active period of the

monsoon season. Cloud cover is 6.1- 6.4 oktas during monsoon season.

4.7.5 Humidity

Most humid conditions are found in the North East monsoons, followed by winter, summer and South

West Monsoon in that order. Mornings are more humid than evenings and humidity ranges from a

high of 76 – 79% in North East monsoon mornings to a low of 38 – 46% in summer evenings. During

South West monsoon season, in morning humidity remains between 58 – 66% and in the evening it

remains between 47 – 55%.

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4.8 Social infrastructure available

The project site is located about 11 km from Madurai city corporation limits where all conceivable

major social infrastructure is available.

There are neighboring villages within 2 - 3 km where supplementary infrastructure such as housing,

sanitation, residential infrastructure, education, primary health center, etc are available.

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5 PLANNING BRIEF

5.1 Planning Concept (type of industries, facilities, transportation etc) Town and

Country Planning/Development authority Classification

The proposed project is an expansion and will be taken up in existing site in which company has been

operational since 1994. The land is completely owned by the project proponents and is already

compounded / fenced and part of company’s premises. The site and surroundings are non-agricultural

and land use is unclassified. There are no major or minor industrial establishments in the immediate

surroundings. The project site is extremely well connected to nearest major urban center (Madurai

city) and also to State and National highways.

5.2 Population Projection

During the Construction and Execution phase of the Project, it is estimated that about 50 workers will

be involved.

Thereafter during the operation phase at the new plant around 350 new positions will be created and

filled over the course of startup of the project.

5.3 Land Use planning (Break up along with green belt etc.)

The Proposed Plant is located S.F No. 34/6A, Naickanpatti, Madurai, Tamil Nadu by M/s. Abhilash

Chemicals Pvt. Limited. It is already developed according to Chemical Industrial Use. The area breakup

at site is given in Table 5-1.

Table 5-1: Area Breakup at Site

Sr. No.

Block No Shown in Site Layout Plan

Area Existing Proposed

Total Area % of Plot

Area m2 m2 m2

A Plant Area

1 4 Synthetic Coating Agents

Plant 394 - 394 0.19

2 20 Pharmaceutical Production

Area 507 - 507 0.24

3 21 Product Recovery Area 384 - 384 0.18

4 22 Chemical Process Area 98 - 98 0.05

6 36 Fat Liquor Plant (High

Temp.) 237 - 237 0.11

7 40 Blending Plant 65 - 65 0.03

8 41 Synthetic Tanning Agents

Plant 731 - 731 0.35

9 44 Fat Liquor Plant (Low

Temp.) 153 - 153 0.07

10 3 Metformin HCL Block-2 - 3632 3632 1.74

11 10 Metformin Distillation Area - 92 92 0.04

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Sr. No.

Block No Shown in Site Layout Plan

Area Existing Proposed

Total Area % of Plot

Area m2 m2 m2

12 14 Polymeric Coating Agent

Plant - 785 785 0.38

13 8 Bronopol Plant - 540 540 0.26

14 22 Paracetamol Plant - 3283 3283 1.57

Sub Total 2569 8332 10901 5.21

B Raw Material & Finished Products Storage Areas

15 18, 4 Finished Good Warehouse 152 656 808 0.39

16 19, 5 Packaging Material

Warehouse 156 664 820 0.39

17 23, 7 Mix-Xylene Storage Area 17 22 39 0.02

18 24, 2 Raw Material Warehouse 215 1411 1626 0.78

19 30 Storage Building 225 - 225 0.11

20 31 Activated Carbon Storage 25 - 25 0.01

21 34 Phenol Tank 25 - 25 0.01

22 35 Raw Material Store 100 - 100 0.05

23 39 Furnace Oil Tank 31 - 31 0.01

24 43 Finished Goods Store 49 - 49 0.02

25 42 Sulphuric Acid Tank 16 - 16 0.01

26 45 Caustic Soda Bags 16 - 16 0.01

27 13 Methanol Storage Area - 1794 1794 0.86

28 17 Acetic Acid Storage Tanks - 816 816 0.39

29 18 Acetic Anhydrous Storage

Tanks - 660 660 0.32

30 19 Acid/Alkali Storage Tanks - 992 992 0.47

31 21 Salt Recovery System & its

Storage - 301 301 0.14

32 49 Packaging Material Storage

Yard 527 527 0.25

33 38 Formaldehyde Tank 32 - 32 0.02

34 14, 25 Diesel Tank 42 42 84 0.04

Sub Total 1628 7358 8986 4.29

C Utility Area

35 8 Utility Shed 34 - 34 0.02

36 11, 23 Power House 72 141 213 0.10

37 12, 24 Genset 125 103 228 0.11

38 25, 9 Cooling Tower 25 425 450 0.22

39 28 Process Water Plant 43 - 43 0.02

40 32, 8 Boiler Stack 13 38 51 0.02

41 33, 1 Boiler House 267 1060 1327 0.63

42 37 Thermic Fluid Heater Stack 8 - 8 0.00

43 47 STP 86 - 86 0.04

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU PLANNING BRIEF

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 32

Sr. No.

Block No Shown in Site Layout Plan

Area Existing Proposed

Total Area % of Plot

Area m2 m2 m2

44 48 Water Tank 9 - 9 0.00

45 6 ETP + MEE - 99 99 0.05

46 20 Chilling Unit - 300 300 0.14

Sub Total 682 2166 2848 1.36

D Non-Plant Areas

47 1 Security 11 - 11 0.01

48 2 Transformer Yard 200 - 200 0.10

49 3 Parking 96 - 96 0.05

50 29 Engineering Workshop 143 - 143 0.07

51 5 Engineering Stores 116 - 116 0.06

52 6 Godown 123 - 123 0.06

53 7 Yard 384 - 384 0.18

54 9 Scrap yard 19 - 19 0.01

55 10 Admin Office 133 - 133 0.06

57 13 Septic Tank 20 - 20 0.01

58 15 Employee Building and

Occupational Health Center 180 - 180 0.09

59 16 Building Material Godown 17 - 17 0.01

60 17, 11 Hazardous Waste Storage 58 169 227 0.11

61 26 Floor Drain & Condensate 47 - 47 0.02

62 27 LT Panel Room 36 - 36 0.02

63 46 Building 68 - 68 0.03

64 12 Hazardous waste Tank - 96 96 0.05

65 15 QC Lab - 31 31 0.01

66 50 Ladies Toilet 12 - 12 0.01

67 51 Ladies Dining Room 45 - 45 0.02

Sub Total 1708 296 2004 0.96

SUB TOTAL OF BUILT UP

AREA 6587 18152 24739 11.82

68 Greenbelt Area 48735 24532 73267 34.9

69 Road Area 5619 13864 19483 9.3

Open Area 109953 - 91801 43.9

Total 209290 100

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU PLANNING BRIEF

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 33

5.4 Assessment of Infrastructure Demand (Physical and Social)

The proposed project is located S.F No. 34/6A, Naickenpatti Village, Madurai East Taluk, Madurai

District, Tamilnadu. The site is located ~ 11 km from Madurai city corporation limit.

Physical Demand:

Water: Water demand will be met from onsite borewells. The existing water demand is ~ 44.3 KLD.

The proposed water demand after expansion shall be ~270.3 KLD.

Electricity: The electricity will be sourced from the grid of Tamilnadu electricity board (TNEB). DG

sets will be installed to provide backup power in case of power outage. The existing connected load is

1045 HP. Total proposed connected load after expansion will be ~ 3000 HP.

Machinery: Machinery that will be installed include Reactors, Storage tanks, Day tanks, distillation

columns, condensers, Chilled Water unit, scrubbers, evaporators, spray dryer, Boilers, Thermic fluid

heaters and other similar equipment.

Materials and Others: Raw material requirements will be met by domestic suppliers from within the

state as well as from other states. Some raw materials will also be imported via Tuticorin seaport.

Other general materials such as industrial consumables, spares and engineering items shall be

procured locally. Other general facilities are all available in the area.

5.5 Amenities / Facilities

Following facilities will be made available at site:

Occupational health center

First Aid Facility

Ambulance van

Hygienic Drinking Water Facility

Green Area

Regular Worker Medical Checkup Facility

Locker room, Rest area, Toilets, Shower and Dining areas

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU PROPOSED INFRASTRUCTURE

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 34

6 PROPOSED INFRASTRUCTURE

6.1 Industrial Area (processing area)

The proposed project is an expansion and will be taken up in existing site in which company has been

operational since 1994. The land is completely owned by the project proponents and is already

compounded / fenced and part of company’s premises. Infrastructure suitable for operations of

synthetic organic chemical plant including approach roads, supporting infrastructure etc are already

available.

New infrastructure for production, storage, power distribution, fire fighting, testing etc. will be

appropriately added in the existing layout after thorough scientific due diligence and detailed

engineering.

6.2 Residential Area (non-processing area)

No residential facility will be provided.

6.3 Green belt

Around 34.9% of total plot area will be developed as greenbelt.

6.4 Social Infrastructure

As described in previous sections, the project site is located about 11 km from Madurai city

corporation limits where all conceivable major social infrastructure is available.

There are neighboring villages within 2 - 3 km where supplementary infrastructure such as housing,

sanitation, residential infrastructure, education, primary health center, etc are available.

The project proponents may work with the local villages to strengthen social infrastructure as part of

CSR activity.

6.5 Connectivity (Traffic and transportation road/ rail/metro/water ways etc.)

The project involves expansion in currently existing site. As described in Section 4.1 earlier the site is

extremely well connected by Road, Air and Rail. No new infrastructure is envisaged or required.

The project proponents may work with the local villages to strengthen road infrastructure as part of

CSR activity.

6.6 Drinking water management (source & supply of water)

Safe, hygienic drinking water will be provided on site. The drinking water will be generated in-house.

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU PROPOSED INFRASTRUCTURE

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 35

6.7 Sewage system

Water from domestic usage and sewage will be collected and treated in a sewage treatment plant.

The treated water from the STP shall be utilized for gardening.

6.8 Industrial waste management

Wastewater management is given in Annexure 7 of Form 1. Hazardous Waste management is given

in Annexure 9 of Form 1.

6.9 Power requirement & supply/ source

The power requirement for the proposed facility will be met through HT supply from the grid of

Tamilnadu electricity board (TNEB). Total estimated electrical load for the proposed manufacturing

unit after expansion is around 3000 HP. In addition to existing DG sets (75 KVA, 125 KVA, 200 KVA

and 400 KVA) the proposed plant will have 3 DG sets of 500 KVA each for emergency power back up.

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU REHABILITATION AND RESETTLEMENTS

(R&R) PLAN

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 36

7 REHABILITATION AND RESETTLEMENTS (R&R) PLAN

7.1 Policy to be adopted (central/state) in respect of the project affected persons

including home oustees, land oustees and landless labourers (a brief outline to

be given)

Not applicable as rehabilitation and resettlement will not be required.

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU ANALYSIS OF PROPOSAL

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 37

8 PROJECT SCHEDULE AND COST ESTIMATE

8.1 Likely date of start of construction and likely data of completion (time

schedule for the project to be given)

The Project Time Schedule for the Project is as given in Table 8-1.

Table 8-1: Project Time Schedule for expansion project at ACPPL

Activities Start Finish

EC & CTE Approval Apr 2016 Mar 2017

Detailed Engineering (Phase I) Jan 2016 Jan 2017

Procurement and Delivery (Phase I) Apr 2017 Oct 2017

Construction at Site (Buildings, Mech., Piping, Elec., Inst etc)

(Phase I) Apr 2017 Oct 2017

Mechanical Commissioning (Phase I) Oct 2017 Nov-2017

Pre Commissioning (Phase I) Nov-2017 Dec-2017

Process Startup and Stabilization (Phase I) Dec-2017 Jan-2018

Detailed Engineering (Phase II) Jan 2018 April 2018

Procurement and Delivery (Phase II) Apr 2018 Oct 2018

Construction at Site (Buildings, Mech., Piping, Elec., Inst etc)

(Phase II) Apr 2018 Oct 2018

Mechanical Commissioning (Phase II) Oct 2018 Nov-2018

Pre Commissioning (Phase II) Nov-2018 Dec-2018

Process Startup and Stabilization (Phase II) Dec-2018 Jan-2019

8.2 Estimated project cost along with analysis in terms of economic viability of the

project.

8.2.1 Fixed Capital

Below is a brief summary of capital investment at site to develop necessary infrastructure and install

manufacturing capabilities. The total project cost is envisaged at INR 22 Crores.

S. No Cost Head Cost (INR Crore)

1 Land 0.5

2 Land Development

3 Building 7

4 Plant & Machinery (including Utilities) 9.5

5 Other Infrastructure 2

Sub Total (A) 19

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU ANALYSIS OF PROPOSAL

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 38

S. No Cost Head Cost (INR Crore)

6 Project Consultancy 0.5

7 Statutory clearances 0.3

Sub Total (B) 0.8

Total (A+B) 19.8

8 Contingency @ 10% 2.2

Grand Total 22

ABHILASH CHEMICALS &

PHARMACEUTICALS PVT. LTD.

PRE-FEASIBILITY REPORT FOR PROPOSED

EXPANSION OF SYNTHETIC ORGANIC

CHEMICALS MANUFACTURING PLANT AT

MADURAI, TAMIL NADU ANALYSIS OF PROPOSAL

KADAM ENVIRONMENTAL CONSULTANTS | MAY 2016 39

9 ANALYSIS OF PROPOSAL

9.1 Financial and social benefits with special emphasis on the benefit to the local

people including tribal population, if any, in the area

Abhilash chemicals and pharmaceuticals Pvt Ltd (Formerly known as 'Abhilash Chemicals Pvt Ltd') has

grown from a small unit to an internationally recognized manufacturer over its course of existence.

The company has made significant advancements over the last few years by bringing its operations to

meet global standards in terms of Product quality, Quality of operations, Employee health & Safety

and Environmental protection. This proposed expansion will enable the company to further modernize

its infrastructure, bring in global best practices and thus safeguard the future of its existing business

and the livelihoods of hundreds of families currently dependent on the company's well being.

The proposed expansion at ACPL will have a significant impact on the economics of the surrounding

hamlets and villages by creating employment opportunities for qualified local people, by creating

indirect economic activity and by providing opportunities for local tradesmen and entrepreneurs.

Although South Tamilnadu has very favorable demographics and potentially qualified workforce, there

are very few companies in the Chemical / Pharmaceutical sector in the region. The company is

amongst the very few companies to have emerged in the Pharmaceutical Sector from Tamilnadu in the

last 10 years and with the proposed expansion will create hundreds of technical and skilled jobs. The

company also has the potential to attract back several skilled and senior professionals employed in the

pharma industry / Speciality chemical industry from other parts of India/abroad and result in

incubation of specialized skills and work culture amongst locally educated junior employees.

Over its many years of existence, ACPL has developed a reputation as a recognized, consistent

generator of Direct, In-direct taxes and Foreign exchange in the Madurai Region which is not as

industrialized as parts of Maharashtra, Gujarat or the Greater Chennai region in Tamilnadu. The

proposed expansion will proportionately increase revenue and foreign exchange earned by the State

and Central government.

ACPL is already a recognized revenue generator, activity generator at the Tuticorin port. The proposed

expansion will trigger multifold increase in export/import activity and will proportionately positively

impact the company's contribution to the development of Tuticorin Seaport - which is a small, but

strategically emerging regional port.

As a long term stakeholder in the local community nearby the project site, the company shall make

social investments as part of its CSR initiatives to improve healthcare, education, sanitation,

infrastructure in the area and thus contribute to the well being and long term development of the local

community.

Kadam Environmental Consultants w w w . ka d a m en v i r o . c o m

Envi ronment for Deve lopment