EPOXY RESINS - Krishna districtkrishna.nic.in/PDFfiles/MSME/Chemical/EPOXY RESINS[1].pdf · EPOXY...

1

EPOXY RESINS

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

AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS SECTION XI SWOT ANALYSIS SECTION XII FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS

2

SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATIONS Epoxy resins are characterized by epoxy equivalent (EEVV)/epoxy value, hydrolysable chlorine content, total chlorine content, viscosity/softening point, volatile content, colour, clarity, hydroxylvalue, ionic iron, sodium and chlorine contents. IS Specification of Epoxy resin IS : 9197-1979 This shall be liquid epoxy resin containing no hardeners. It shall be of the following two grades: a) Grade 1 - Resins containing no diluents. These shall conform to the requirements laid in Table 1. b) Grade 2 - Resins modified with a reactive diluent. These shall conform to the requirements laid down in Table 2. Each class of Grade 2 resin can be made with Grade 1 resin. Requirements for Grade 1 Epoxy resin Class Epoxy content Viscosity

27 Deg C Pa.s.

Specific gravity 27 Deg C

Hydrolysable chlorine content, %, max.

Equivalent/ 1000 g

Weight per epoxy Equivalent

I 5.0 to 5.88 200 to 170 3 to 20 1.05 min 1.20 max

0.6

3

Requirements for Grade 2 Epoxy resin Class Epoxy content

Equivalent/ 1000 g, min Viscosity 27 Deg C Pa.s.

Specific gravity 27 Deg C

Hydrolysable chlorine content, %, max.

I 5 0.5 to 0.9 1.05 Min. 1.20 Max.

0.6

II 5 0.9 to 4 1.05 Min. 1.20 Max.

0.6

III 5 4 to 10 1.05 Min. 1.20 Max.

0.6

4

SECTION II

PRODUCT APPLICATIONS Epoxy resin finds application in number of sectors such as the following. * Protective Coatings. * Structural Composites * Electrical Laminates * Casting and Encapsulation * Adhesives * As adhesive for aircraft honeycomb structures, for paint brush bristles, concrete topping compounds. * As body solders and caulking compounds for the repair of plastic and metal boats,automobiles etc. * As casting compounds for the fabrication of short run and prototype moulds, stamping dies, patterns and tooling. * As caulking and sealant compounds in building and highway construction applications and in applications where high orders of chemical resistance are required. * As potting and encapsulation compounds and impregnating resins and varnishes for electric and electronic equipment. * As laminating resins for airframe and missile applications, for filament wound structures and for tooling fixture. Epoxy based solution coatings are used in maintenance and product finishes, marine finishes, masonry finishes, structure steel coatings and tank coatings, aircraft finishes, appliance primers, automotive primers, car and drum linings, furniture finishes and collapsible tube coatings. They are used for concrete floor paints, gym and floor varnishes, spar varnishes etc. Epoxy Resins are also used in decorative floor applications, as chemically resistant mortars and floor topping compound; in printing inks, in fabric treating applications in dental, surgical and prosthetic applications for breaking petroleum emulsions and for light weight chemically resistant foams. The epoxy resins are used as additives for a variety of other plastic materials, such as vinyl and acrylic resins and natural and synthetic rubbers.

5

SECTION III

INDIAN MANUFACTURERS The manufacturers of epoxy resin, other than the paint units, who have captive facilities include the following * Atul Limited Corporate Office : P.O. Atul 396 020, Dist. Valsad Factory : 297, GIDC Industrial Estate,

Ankleshwar-393 002 * Bluebell Polymers Pvt. Ltd. Regd. Office & Postal Address: 79, G.V.M.S. Audyogic Vasahat Ltd., Odhav, Ahmedabad-382 415 Factory : Block No.131, Bileshwarpura, Taluka Kalol, Dist. Mehsana-382 729 * Cibatul Limited P.O. Atul 396 020,Dist. Valsad, Gujarat * Coromandel Prodorite Pvt. Ltd., Factory :

Post Bag No.7, 24, Thattankulam Road, Madhavaram,Madras-600 060. * Dr. Beck & Co (I) Ltd., Beck House,Damle, Patoff Off. Law College Road,Pune-411 004 Factory : Pimpri, Maharashtra and Ankleshwar, Gujarat * Himalaya Resins & Paints Private Limited Regd. Office & Factory: Baroda Godhra Highway, At: Alindra Post Box No.19, Kalol (PMS)-389 330, Gujarat. * Indo N M Resin Systems Pvt. Ltd., 15A, Bhale Estate, Mumbai-Pune Road, Wakadewadi, Pune-411 003. Factory : GATE No. 943/1A/1/2, Sanaswadi, Taluka-Shirur Dist.,Pune.

6

* Kromatik & Insulants (P) Ltd., C-4 Indl. Estate, Mogappair West, Chennai 600 058. * Noble Synthetics Limited Factory : D-43(5) T.T.C., MIDC Indl. Area Navi Mumbai-500 706 * Petro Araldite Pvt. Ltd., Manali Express Highway, Manali, Madras-600 068. * Parikh Resins & Polymers Ltd., 54/38 Naya Ganj, Kanpur-208 001 * Resinova Chemie Ltd. 54/38, Nayaganj, Kanpur-208 001 * Resins and Plastics Limited Plot No. A/8, Marol Industrial Estate Of MIDC, Cross Road B, Street No.5, Andheri (E), Mumbai 400 093 Plot Number 3-A, Taloja Indl. Estate of MIDC Taloja A.V.-410 208 * Ruia Chemical Pvt. Ltd., Regd. Office : 105/2B, Ultadanga Main Road Calcutta-700 067 * Spectrum Alkyd & Resins Limited Factory Add: G-42, MIDC, Industrial Area, Waluj-431 133, Dist. Aurangabad Regd Office: 73, Persepolis, 100, Cuffe parade,

Mumbai-400 005 * Subh Resins & Fuels P.Ltd. 6-56, Chandanagar,

Hyderabad 500 050 Plot No.42-A, IDA, Phase V, Patancheru, Medak Dist., Andhra Pradesh * Synthetics & Polymer Industries Regd. Office & Factory:- 77 G.V.M.S. Audyogic Vasahat Ltd.,

7

Odhav, Ahmedabad-382 415 Profile of Petro Araldite Pvt. Ltd., PAPL was formerly a joint venture between Tamil Nadu Petro Products Ltd. (TPL) and Ciba India Pvt. Ltd., a whollyowned subsidiary of the Swissbased Ciba Speciality Chemicals Company. The facility has the capacity to manufacture 30,000 tonnes epoxy resins, formulations and ancillaries per year. Vantico International has boughtout the Indian Partners, Tamil Nadu Petroproducts (TPL), in Petro Araldite (PAPL) through its Indian arm. Currently, Vantico holds 76% equity directly in PAPL. PAPL is in the business of polymers. It manufactures epoxy resin out of epichlorohydrin produced by TPL. However, following Ciba's global divestiture from the polymer business, CIPL sold its stake in PAPL to Vantico for Rs.40 crore in March 2002. After this deal, Vantico wanted TPL to reduce the price of Epichlorohydrin which was resisted by the latter. Thereafter, Ciba had offered to pay compensation for the premature termination of supply contract. On the basis of this, TPL had entered into a fresh contract for supplying ECH at market rate against the earlier cost-plus price. Vantico was created through a spin-off and management takeover of the performance polymers division of Ciba Speciality Chemicals. The Luxembourg incorporated company provides solutions in the field of coatings, structural composites, adhesives, tooling materials, electrical and electronic insulation, utilising thermosetting polymers of the automotive, electronic, electrical, aerospace and consumer-durable industry.

Indian installed capacity Around 50000 tonnes per annum

8

SECTION IV

IMPORT/EXPORT LEVEL 4.1 Import 4.1.1. Present import level : 3700 tonnes per annum 4.1.2 Countrywise Imports Period April 2001 to March 2002 Country Qunatity in Kgs Australia 5937 Austria 4580 Belgium 42586 Canada 24180 Chinese Taipei 319219 China P RP 170591 Czech Republc 75 France 17160 German F REP 279375 Hong Kong 14318 Ireland 4690 Israel 3550 Italy 174056 Japan 240446 Korea RP 506955 Malaysia 67750 Netherland 177243 New Zealand 1940 Saudi Arab 400 Singapore 17763 South Africa 3246 Spain 2000 Sri Lanka 56420 Sweden 500 Switzerland 78851 Thailand 621516 U Arab Emts 283827 UK 259500 USA 252932 Unspecified 100

9

4.1.3 Sample of individual imports of Epoxy Resins Period 2002 Name of the Importers

Quantity in tonnes

Value in Rs. Country Date Port

Aroma Agencies 4.700 335646 Thailand 01.01.2002 to 08.01.2002

Mumbai

Ganpati Resistors P.Ltd.,

0.530 79667 Tiwan 01.02.2002 to 09.02.2002

Mumbai

Aroma Agencies 6.160 334318 Thailand 01.03.2002 to 08.03.2002

Mumbai

Aroma Agencies 13.72 251288 Holland 01.04.2002 to 05.04.2002

Mumbai

Asian PPG Industries

18.000 1472853 Holland 01.05.2002 to 07.05.2002

Mumbai

Asian Paints Inds. 14.750 940893 UK 11.06.2002 to 17.06.2002

Mumbai

4.2 Export Level 4.2.1 Present export level : Around 1200 tonnes per annum 4.2.2 Countrywise Exports Period April 2001 to March 2002 Country Qunatity in Kgs Argentina 46640 Australia 3500 Bangladesh 1100 Belgium 161120 Brazil 17600 Canada 3160 China P RP 28865 Egypt A RP 8800 France 8000 Hong Kong 35600 Japan 2500 Kenya 6750 Korea DP RP 26000 Korea RP 172000 Malaysia 14020 Oman 30

10

Pakistan 1950 Saudi Arab 59050 Singapore 18301 Slovenia 17600 Sri Lanka 5680 Switzerland 236600 Thailand 2130 U Arab Emts 15300 UK 28710 USA 276696 Venezuela 396 4.2.3 Sample of individual exports of Epoxy Resins Period 2002 Name of the Exporters

Quantity in tonnes

Value in Rs. Country Date Port

Petro Araldite P.Ltd.,

0.003 289 Colombo 13.01.2002 to 31.01.2002

Chennai

Schenectady Beck India

0.060 15792 Muscat 01.02.2002 to 15.02.2002

Mumbai

Petro Aradite P.Ltd., 0.4 29290 Dubai 01.03.2002 to 12.03.2002

Chennai

Supa Sales & Services

1.000 93600 Djibouti 01.05.2002 to 31.05.2002

Mumbai

Asian Paints (I) Ltd., 0.2 5459 Colombo 17.06.2002 to 29.06.2002

Mumbai

11

SECTION V

PRICE TRENDS Basic price : Around Rs.390 per kg Taxes and duties Extra as applicable

12

SECTION VI

INDIAN DEMAND Present Indian Demand : Around 10000 tonnes per annum Petro Araldite Pvt. Ltd., and Atul Ltd. are the major players in the organised sector, jointly holding a market share of about 80 %. The unorganised sector accounts for the balance 20%. Consolidated Statement of demand for Epoxy resin S.No. Sectors Demand

In TPA 1. Industrial Protective Coatings 4000 2. Electrical and Electronic Industries 1300 3. Civil Construction Applications and Adhesives 2700 4. FRP Composites and Miscellaneous sector 2000 Total estimated demand 10000 Growth rate in demand : 6 to 7% per annum.

13

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Epichlorohydrin and Bisphenol A are reacted under specified conditions of temperature of reaction etc and the reaction product is washed, free from electrolytes. Further, it is dehydrated under reduced pressure. Source of technology * National Research and Development Corpn. Ltd., (NRDC)

New Delhi Major Plant and machinery and suppliers

Name of the equipment

Name of the supplier

Reaction vessels Srivari Enterprises SP-123, XIX Phase Ambattur Indl. Estate, Chennai-600 058 Chemicals Plant & Equipment Pvt. Ltd Plot No.69, Old No.39, II main Road, Ambattur Indl. Estate Chennai-600 058

Filters Air Filter Industries Mercantile Building 2nd Floor, G.P.O. Box 886 9A, Lal Bazar Street Calcutta-700 001 Divya International 23A, Netaji Subhas Road, 8th Floor, Room No.28, Calcutta-700 001

Air compressors

ELGI Equipments Ltd., Elgi Industrial Complex III, Trichy Road, Singanallur, Coimbatore-641 005 K.G. Khosla Compressors Ltd., 19.8 KMS, Delhi-Mathura Road, Faridabad-121 003, Haryana

14

Kaeser Kompressoren India 9 & 10, Symphony `C' Bldg., Range Hill Road Shivaji Nagar, Pune-411 020

Thermic fluid heaters Aero Therm Systems Pvt. Ltd., Plot No,1517, Phase – III GIDC, Vatwa, Ahmedabad – 382 445 Energy Machine C1, B/423, GIDC, IV- Phase, Vithal Udyognagar, Dist.Anand, Gujarat

15

SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY Raw material requirements Basis One tonne of Epoxy Resin Bisphenol A 0.73 tonne Epichlorohydrin 3.33 tonne Sodium Hydroxide 0.33 tonne Toluene 0.13 tonne Utilities Total Installed power : 75 HP for the project of capacity 300 tonnes per annum. Fuel: : 50 litres Water required per day 6,000 litres. Raw material availability Name of the raw material Name of the supplier

Bisphenol-A Kesar Petroproducts Ltd., Ratnagiri

Epichlorohydrin Tamilnadu Petroproducts Ltd., Chennai

Toluene Kochi Refineries Ltd., Kerala

16

SECTION IX

GLOBAL SCENARIO

9.1. Important Global manufacturers of Epoxy resin include the following * Dow Chemical (Australia) Ltd., Australia * 3M France, France * Rhone Poulenc Industries SA, France * Kureha Chemicals GmbH, Germany * Schering Aktinegesellschaft, Germany * Ashi-Ciba Limited., Japan * Asahi Chemical Industry Co. Ltd., Japan * Asahi Denka Kogyo K.K.,Japan * Mitsui Petrochemical Industries Ltd.,Japan * Nippon Kayaku Co. Ltd.,Japan * Nippon Steel Corporation, Japan * Sumitomo Chemical Co. Ltd., Japan * Air Products Nederland B.V., The Netherlands * Resinas Sinteticas SA, Spain * Borden (UK) Ltd., UK * Airtech International Inc.,USA * Abatron Inc, USA * The Dow Chemical Co., USA 9.2. Range of Epoxy resin formulations made by global producer Dow Chemical Co. – Trademark “DER” and “DEN” Number Epoxy Equivalent

weight Viscosity,

Centipoises at 25 (Durran’s m.p., Deg.C)

Comments and representative IR spectra

(Appendixes 4-1 and 13-1)

DER 330 182-189 7000-10000 Low viscosity DGEBA resin DER 331 186-192 11000-14000 Liquid DGEBA resin. IR No.4-1-10 DER 331 VC

186-192 11000-14000 Liquid DGEBA resin. Low foam IR No.4-1-10

DER 332 172-176 4000-5500 Pure, Liquid DGEBA resin. DER 332 LC

170-175 3000-6400 Pure, Liquid DGEBA resin. Low Chlorine

DER 332 VC

170-175 3000-6400 Pure, Liquid DGEBA resin.Low foam

DER 334 178-186 500-700 DER 331 diluted with 12% butyl glycidyl ether

DER 335 170-180 150-210 DER 331 diluted with 20% butyl glycidyl ether

DER 336 181-192 4000-8000 DER 331 diluted with phenyl

17

glycidyl ether DER 337 230-250 Semisolid DGEBA resin for

adhesives and coatings. IR No4-1-11

DER 337-X-90

230-250 (Based on solids(

10000-20000 DER 337 supplied at 90% solids in xylene

DER 511 445-520 (68-80) Brominated epoxy resin, 18-20% Br DER 511 A-80

445-520 (based on solids)

1070-2270 DER 511 supplied at 80% solids in acetone

DER 511 EK-80

445-520 (based on solids)

1070-2270 DER 511 supplied at 80% solids in MEK

DER 542 330-380 (51-61) Brominated epoxy resin based on tetrabromo-bisphenol A, 44-48% Br. IR No.4-1-17

DER 557 1600-2000 (113-123) Solid DGEBA RESIN DER 660 425-575 (65-74) Low melting DGEBA resin DER 661 475-575 (70-80) Low melting DGEBA resin DER 661 PR

475-525 (70-78) DER 661 with narrower m.p. and WPE ranges

DER 661 A-80

475-575 (Based on solids)

3500-8500 DER 661 supplied at 80% solids in acetone

DER 661 EK –75


1000-4500 DER 661 supplied at 75% solids in MEK

DER 661 PRA-80


3500-8500 DER 661 PR supplied at 80% solids in acetone

DER 662 575-700 (80-90) Solid DGEBA resin. Slightly higher m.p. than DER 661

DER 664 875-975 (95-105) Solid DGEBA resin DER 667 EAX-55

1600-2000 Based on solids

2500-10000 DER 667 supplied at 55% solids in xylene and Dowanol EE acetate (1 : 1)

DER 668 2000-3500 (120-140) Solid DGEBA resin DER 669 3500-5500 (135-155) Solid DGEBA resin DER 670-MK 75

425-475 based on solids

3000-8000 DER 660 supplied at 75% solids in MIBK

DER 670 T-75


2000-10000 DER 660 supplied at 75% solids in toluene

DER 670 X-75


4000-14000 DER 660 supplied at 75% solids in xylene

DER 670 MK-75


4500-9500 DER 661 supplied at 75% solids in MIBK

DER 671 XM-75


5500-12000 DER 661 supplied at 75% solids in MIBK and xylene (65 : 35)

DER 671 T-75


7000-16000 DER 661 supplied at 75% solids in toluene

18

DER 732 305-335 55-100 Diglycidyl ether of propylene glycol

(n=9). IR No.4-1-35 DER 736 175-205 30-60 Diglycidyl ether of propylene glycol

(n=9). IR No.4-1-34 Dow BGE 143 3 Butyl glycidyl ether. IR No.13-1-2. DOW Epoxy Novolac Number Epoxy Equivalent

weight Viscosity,

centipoises at 25 (Durran’s m.p., Deg.C)



DEN 431 172-179 1400-2000 at 52 Deg.C

Polyglycidyl either of phenol formaldehyde novolac IR No.4-1-25

DEN 438 176-181 35000-70000 at 52 Deg.C

Polyglycidyl either of phenol formaldehyde novolac IR No.4-1-25

DEN 438 A-85


500-1200 DEN 438 supplied at 80% solids in acetone

DEN 438 EK-85


600-1600 DEN 438 supplied at 85% solids in MEK

DOW Experimental Resins Number Epoxy Equivalent

weight Viscosity,

centipoises at 25 (Durran’s m.p., Deg.C)



QX 2174 226-238 (55-60) Low melting, solid epoxy novolac resin. Similar to DEN 438 but higher functionality. IR No.4-1-25.

QX 2174A-80


QX 2174 supplied at 80% solids in acetone

QX 2174.1 230-245 (65-75) Low melting, solid epoxy novolac resin. Higher functionality. IR No.4-1-25.

QX 2221 182-188 500-700 DER 331 diluted with cresyl glycidyl ether

QX 2232 137-144 17000 Blend of 80 parts DEN 438 with 20 parts of vinylcyclohexene dioxide

QX 2242.1 6340-38800 High molecular weight copolymer of bisphenol A and epichlorohydrin supplied at 40% solids in MEK (Phenoxy)

19

QX 2242.2 627-1760 High molecular weight copolymer

of bisphenol A and epichlorohydrin supplied at 40% solids in MEK (Phenoxy)

QX 2242.3 1290-2270 High molecular weight copolymer of bisphenol A and epichlorohydrin supplied at 32% solids in Dowanol EE Acetate (Phenoxy)

QX 2380 214-221 5000 Flame retardant resins. DGEBA resin diluted with a Br containing diluent. 16-18% BR

QX 2633.12

375-415 (52-60) Low molecular weight, solid DGEBAresin

QX 2633.14

186-192 11000-14000 Liquid of DGEBA resin. Modified for faster gel with amines

QX 2633.17

193-203 16000-22000 High viscosity DGEBA resin

QX 2633.18


QX 2633.19


QX 2638.6 194-210 Based on solids

2200-5800 QX 2638.7 supplied at 85% solids in MEK

QX 2638.7 194-210 250000-550000 at 52 Deg.C

Polyglycidyl ether of Phenol formaldehyde novolac. Higher functionality than DEN 438. IR No.4-1-25.

QX 3441.4 450-550 (65-80) Solid, flame retardant epoxy resin. Contains 13.5 to 14.5% Br. For NEMA FR 4 laminates

QX 3441.4 A-80


QX 3441.4 supplied at 80% solids in acetone

QX 3441.5 550-625 (80-90) Higher Br (22-24%) than QX 3441.4. Also for NEMA FR-4 laminates

QX 3442.1 330-350 (51-61) Semisolid epoxy resin containing 44 to 48% Br. Based on Tetrabromobisphenol A., Higher purity than DER 542

QX 3450 225-300 13000-65000 at 38 Deg.C

Liquid epoxy resin containing 24-26% Br

QX 3476 135 7000 at 70 Deg.C

Tetraglycidyl ether of bisresorcinol F. Tetrafunctional epoxy resin. IR No.4-1-20.

20

SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS

Economic capacity 300 tonnes per annum Project cost : Rs.216 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs 1.1 Cost of land of one acre at Rs.5.5 lakh per acre 5.50 1.2 Cost of levelling, laying internal roads/fencing and

compound wall

0.55

Subtotal 6.050 2. Building S.No. Description Cost

Rs.in lakhs 2.1 Factory building of area 320 sq.m. at Rs.3200/sq.m. 10.24 2.2 Non-factory building of area 50 sq.m.at Rs.4500/sq.m. 2.25 Subtotal 12.49 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs 3.1 Cost of basic plant and machinery 44 3.2 Instrumentation and control 3.3 3.3 Pipelines and valves 4.4 3.4 Structurals for erection 2.2 Subtotal 53.9 3.5 Octroi, excise duty, sales tax, etc.at 12%� 6.47 3.6 Packaging and insurance charges (2%) 0.88 3.7 Transportation charges (2%) 0.88 3.8 Machinery stores and spares (2%) 0.88 3.9 Foundation charges (2%) 0.88 3.10 Installation charges (2%) 0.88 Total cost of plant and Machinery 64.77

21

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

Rs.in lakhs 5.1. Electrification 3 5.2. Steam boiler and auxillaries 4.5 5.3. Water storage tank, borewell etc. 0.8 5.4. Fuel storage tank 1.3 5.5. Laboratory equipment 0.8 5.6. Office machinery & equipment 1.50 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 1.50

5.8. Diesel generator 5 5.9. Effluent treatment 1.20 Total 19.6 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs 6.1. Preliminary expenses 0.8 6.2. Pre-operative expenses:- 0 6.2.1 Establishment 0.8 6.2.2 Rent rates and taxes 0.8 6.2.3 Travelling expenses 1.40 6.2.4 Interest and commitment charges on borrowings 7 6.2.5 Insurance during construction period 1.2 6.2.6 Other preoperative expenses and deposits 0 6.2.7 Interest on deferred payment 0 Total 12 7. Provision for contingency Rs. 7.3 lakhs 8. Working capital margin Rs. 90.43 lakhs 9. Total project cost Rs.215.78 lakhs Say Rs.216 lakhs 10. Means of Finance Promoter's contribution Rs.86 lakhs Term loan from financing institutions Rs. 130 lakhs Total project cost Rs.216 lakhs

22

11. Financial statements A Variable cost

Rs. in lakhs

Raw material and utilities 830.48 Spares and maintenance 3.95 Selling expenses 63 Total variable cost (A)

897.43

B Fixed cost

Salaries and wages 9 Interest on term loan and working capital loan 72.18 Depreciation 8.87 Administrative expenses 35.1 Total fixed cost (B)

125.15

C. Total cost of production (A+B)

1022.58

D. Selling price per kg. (in Rupees)

390

E. Annual sales turnover

1170

F. Net profit before tax (E-C)

147.42

G. Breakeven point in %

47%

23

SECTION XI

SWOT ANALYSIS

Strength Growing demand

Weakness Small capacity plants Lack of global competitiveness

Opportunity Introduction of newer grades

Threat

Imports

24

SECTION XII

FACTORS INFLUENCING THE POSTION FOR A NEW INDUSTRY AND RECOMMENDATIONS

The import of Epoxy resin is likely to continue in view of the price factors and the lack of global competitiveness of the Indian units. In recent times, major investment have been made by Petro Araldite Pvt. Ltd., in setting up a large capacity Epoxy resin unit in the country. However, the Indian units face problems in capacity utilisation due to imports

EPOXY RESINS - Krishna districtkrishna.nic.in/PDFfiles/MSME/Chemical/EPOXY RESINS[1].pdf · EPOXY...

Documents

Transcript of EPOXY RESINS - Krishna districtkrishna.nic.in/PDFfiles/MSME/Chemical/EPOXY RESINS[1].pdf · EPOXY...