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MAGNESIUM SULPHATE

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

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SECTION - I

PRODUCT CHARACTERISTICS AND SPECIFICATION

1.1 Product Characteristics Alternate names

Epsom salt, Mg-5-sulfate

Chemical formula

MgSO4.7H2O

Density

1.67

pH

6 to 7

Solubility

Soluble in water at 20 deg.C. Slightly soluble in alcohol

Toxicity Parenteral use or use in presence of renal insufficiency may lead to magnesium intoxication.

1.2 Indian Standard Specification (IS)

Composition

Contents in percentage

Magnesium sulphate (MgSO4.7H2O) % by wt.

98 to 105

Chloride, (as Cl) % by wt. max.

1.0

Iron as Fe % by wt.max.

0.007

Matter insoluble in water, % by wt. max.

0.2

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SECTION - II

PRODUCT APPLICATIONS

Sector Application

Agriculture Used as nutrient in agricultural operations

Considered as ideal nutrient to provide the Magnesium requirement of crops which supplements Sulphur simultaneously.

Pharmaceutical applications

Epsom salt is known to common man as an effective laxative. Epsom salt is administered intravenously in sea sickness, hypertension, to lower the intercranial pressure, tetanus spasm and to control the convulsions in acute eclampia. Epsom salt is used in wet dressing of boils because of its anesthetic and osmotic properties. It is also used as cathartic and in the treatment of chole cystitis. Used as Dietary supplement

Derivative Products Magnesium ammonium sulphate, Magnesium borate Magnesium carbonate(preciptated) Magnesium fluroide Magnesium oleate Magnesium oxalate Magnesium phosphate Magnesium stearate Magnesium sulphite

Miscellaneous applications

Used in textile industry for dyeing, in tanning of leather and hides. Use has been claimed in paints, white paper, oxysulphate cement. Dyeing with aniline colours, Fire-Proofing, Mineral Waters, Ceramics, Explosives, Matches, Fertilizers, Paper sizing, Cosmetic lotions To some extent, it is used as fire proofing material

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SECTION - III

INDIAN MANUFACTURERS Magnesium Sulphate is generally manufactured in the unorganised and small scale sector. The names of important Indian manufacturers of Magnesium Sulphate include the following * Adheswara (Exports) Private Limited

8, IInd Main Road, Seethammal Colony, Alwarpet, Chennai (Zip : 600 018) * Alwaye Fertiliser Industries (P) Ltd., Keezhmad, Alwaye-683 105. Kerala. Office : IX/176, Palace Road, Post Box No.57, Alwaye-683 101. Mailing Address : P.B. No.57, H.P.O., Alwaye-683 101 * Deccan Agro Chemicals

#5, Kovalan Street, Verrappanchatram, Erode - 638 004,

* Emichem Pvt. Ltd

(Formerly known as K.P. Minerals Pvt. Ltd.,) 7, Tata Chand Dutta Street 3rd Floor, Room No.31 Calcutta-700 073 Factory :

Jalan Industrial Estate( Near Saraswati Bridge) Village-Baniyara, Jangalpur, N.H.-6 P.O. Domjur, Dist. Howrah-711 411 * Gee Gee Khay Chemical Industry

EP-28, SIDCO Indl. Estate, Marailmalai Nagar-603 209, Chengleput Dist.

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* Gujarat Chemicals and Fertilizers Trading Co. 23, B.H. Complex, 1st Floor, Nr. Utkarsh Petrol Pump Karelibaug, Baroda-390 018 * Greenfield Chemicals, Office : 24, Haji Muthavalliyacoob Street, Salem-636 001. Factory : 28, Industrial Estate, Oddayapatti,Salem-636 140. * Inorganic Metal Corpn. 154, Varadarajan Street, Sathama Nagar, Chennai-600 019 * ICMC Corporation Ltd., 26, Murrays Gate Road, Alwarpet, Chennai-600 018 * Kolmak Chemicals Limited

21-A, Shakespeare Sarani, Calcutta-700 017 Factory : Kalyani, Nadia Dist West Bengal * Kalpana Chemicals E/186, First Floor, B.G. Tower, O/s. Delhi Gate Ahmedabad-380 004 * Mercers Chemical Industries MAG-Pharma Industries 231, Samuel Street, Masjid Bunder (W),

Mumbai-400 003. * Meenakshi Chemicals 79/3, Kunjandiyur, Gonur P.O., Mettur Dam-636 404, Salem Dist. * Mehta Chemical Industry 58, Govindappa Naicken Street, Hanwant Complex, 1st Floor, Chennai-600 001

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* Mag Products Chennai Factory: Mettur * National Chemical Industries 602, Monalisa, Hari Niwas, Thane (West)-400 602,Maharashtra Works : W-43, MIDC, Morivli, Ambernath, Maharashtra-421 501 * Navadia Refines Shed No. 1308, GIDC.,Ankleshwar Dist. Bharuch-393 002 * Navnidh Pharma Labs Bharat House, 3rd Floor 104, Mumbai Samachar Marg Fort, Mumbai 400 023 * Om Chemical Industries

654 A Urla Industrial Estate Raipur Uttaranchal 493 221

* Pary Agro Chemicals 294, Baliram Peth, Jalgaon-425 001 * Pankajam Agro Chemical Works Annamar Koil Thottam, Thuduppathi 638 057 Perundurai-Periyar Dist. * Sri Balaji & Co Rajapalayam, Karkudalpatty P.O., Rasipuram Tk.,

Rajaji Dist.-636 202 * Shreeram Industries & Chemicals 93/C6H/1A, 2nd St., Kandan Colony, Tuticorin 628 002

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* Vishal Chemical Industries

"Gupta House", Vithal Raji Keni Compound, Nanbhai Bhuleskar Marg,

Chincholi, Malad (W), Mumbai - 400 064 (India)

N-18, Navapur Road, M.I.D.C., Tarapur, Boisar. District Thane. Maharastra.(India)

* Yogi Dyechem Industries, 403,Yogeshwar,135-139, Kazi Sayed Street, Mumbai- 400 003. Factory : 2, Meghji Compound, Mazgaon Road Mumbai-400 010

Indian installed capacity Around 1,20,000 tonnes per annum

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SECTION - IV

IMPORT/EXPORT LEVEL

4.1. Imports Consolidated imports

Countrywise imports Period: 1st April 2000 to 31st March 2001

Country Quantity in Kg.

Austria 30 China P RP 5000 German F REP 750 USA 125

10.22

55

5.90510

0

10

20

30

40

50

60

Qua

ntity

in to

nnes

April'98 to March'99 April'99 to March'2000 April'2000 toMarch'2001

April'2001 toMarch'2002

Year

9

5905

4.2. E

xports C

onsolidated exports

3470

6483

5630

6193

0

1000

2000

3000

4000

5000

6000

7000

Quantity in tonnes

April'98 to March'99




Year

10

Countrywise exports Period: 1st April 2000 to 31st March 2001 Country Quantity in Kg.

Australia 41000 Austria 21010 Bangladesh 20000 Belgium 294250 China P RP 150000 France 212000 HongKong 296000 Ireland 20100 Kenya 1742321 Mauritious 1500 Mexico 66000 Morocco 24000 Nepal 174000 Netherland 990000 New Zealand 177250 Oman 10000 Poland 42000 Portugal 42000 Qatar 20000 Saudi Arbia 116000 Spain 529100 Srilanka 271500 Tanzania Rep 84000 Uganda 20000 UK 125000 USA 116500 Zambia 25250

Total 5630781

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Sample of individual exports Period: Year 2002 Name of the Exporter Country Quantity in

tonnes Date Port

Gee Gee Khay Chemicals Agadir 104 1.1.2002 to 12.1.2002

Chennai

Gee Gee Khay Chemicals Altamira 176 1.1.2002 to 12.1.2002

Chennai


Chennai


Chennai

Adheswara Exports Auckland 24 1.12.2002 to 12.1.2002

Chennai

GeeGee Gee Khay Chemicals

Felixtowe 24 13.1.2002 to 31.1.2002

Chennai

Adheswara Exports Fremantle 24 13.1.2002 to 31.1.2002

Chennai

Aimco Pesticides Ltd. Yangoon 0.55 17.1.2002 to 31.1.2002

Mumbai

Loyal Trading Company Colombo 4 1.1.2002 to 31.1.2002

Chennai

Tripal International Luyttelton 9.924 1.1.2002 to 31.1.2002

Chennai

Gee Gee Khay Chemical Industry

Felixstowe 24 1.1.2002 to 31.1.2002

Chennai


Agadir 104 1.1.2002 to 31.1.2002

Chennai

Adheswara (Expots) P.Ltd.

Auckland 24 1.1.2002 to 31.1.2002

Chennai


Tauranga 24 1.1.2002 to 31.1.2002

Chennai


Fremantle 24 1.1.2002 to 31.1.2002

Chennai


Fremantle 24 1.1.2002 to 31.1.2002

Chennai


Almeria 176 1.1.2002 to 31.1.2002

Chennai

VGR Impex (P) Ltd. Valencia 120 1.1.2002 to 31.1.2002

Chennai


Almeria 154 1.1.2002 to 31.1.2002

Chennai


Almeria 176 1.1.2002 to 31.1.2002

Chennai

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Adheswara Exports Colombo 44 1.2.2002 to 15.2.2002

Chennai


Felixtowe 72 1.2.2002 to 15.2.2002

Chennai


Felxitowe 48 1.2.2002 to 15.2.2002

Chennai


Felxitowe 48 1.2.2002 to 15.2.2002

Chennai


Marseilles 96 1.2.2002 to 15.2.2002

Chennai

Kevin (India) Co. Mombasa 50 1.2.2002 to 15.2.2002

Chennai

Gee Gee Khay Chemicals Rotterdam 48 1.2.2002 to 15.2.2002

Chennai

Siddhi Impex Thessalonik 21 1.2.2002 to 15.2.2002

Chennai

Gee Gee Khay Chemicals Valencia 72 1.2.2002 to 15.2.2002

Chennai

VGR Impex P.Ltd. Valencia 120 1.2.2002 to 15.2.2002

Chennai

Gee Gee Khay Chemical Adelaide 24 1.3.2002 to 12.2.2002

Chennai

Gee Gee Khay Chemical Port Kelang 24 1.3.2002 to 12.2.2002

Chennai

Tripal International Long Beach 19 1.3.2002 to 12.2.2002

Chennai

Gee Gee Khay Chemical Napoli 72 1.3.2002 to 12.2.2002

Chennai

Tripal International Oakland 20.410 1.3.2002 to 12.2.2002

Chennai


Chennai

Adheswara Exports Abu Dhabi 44 13.3.2002 to 31.3.2002

Chennai

Rubex International Gothenburg 24 13.3.2002 to 31.3.2002

Chennai

Tripal International Long Beach 17.5 13.3.2002 to 31.3.2002

Chennai

Tripal International Las Palmas 20 13.3.2002 to 31.3.2002

Chennai

Tripal International Lyttleton 24 13.3.2002 to 31.3.2002

Chennai

Siddhi Impex Melbourne 22 13.3.2002 to 31.3.2002

Chennai

Ria Dyes & Chemicals Co.

Mombasa 240 13.3.2002 to 31.3.2002

Chennai


Chennai

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Tripal International Teneriff 20 13.3.2002 to 31.3.2002

Chennai

Gee Gee Khay International

Valencia 68 13.3.2002 to 31.3.2002

Chennai

VGR Impex Valencia 120 13.3.2002 to 31.3.2002

Chennai

Merck Ltd. Yangoon 0.003 1.4.2002 to 30.4.2002

Chennai

Loyal Trading Co. Colombo 4 Jan’2002 Chennai Adheswara (Exports) Pvt. Ltd.,

AU 24 Jan’2002 Chennai

Adheswara (Exports) Pvt. Ltd.,

NZ 24 Jan’2002 Chennai




GEE 154 Jan’2002 Chennai


GEE 176 Jan’2002 Chennai

Adheswara (Exports) Pvt.Ltd.,



MA 104 Jan’2002 Chennai

Tripal International NZ 9.924 Jan’2002 Chennai Gee Gee Khay Chemical Industry

GB 24 Jan’2002 Chennai

Adheswara (Exports) Pvt.Ltd.,

AU 24 Jan’2002 Chennai

VGR Impex Pvt. Ltd., Valencia 120 Jan’2002 Chennai Gee Gee Khay Chemical Industry

GB 48 Feb’2002 Chennai

Pioneer Agritechnoscan & Expo.

LB 21 Feb’2002 Chennai

Tripal International US 20.41 Feb’2002 Chennai Gee Gee Khay Chemical Industry

NL 48 Feb’2002 Chennai

VGR Impex Pvt.Ltd., Valencia 120 Feb’2002 Chennai Adheswara (Exports) Pvt. Ltd.,

Colombo 44 Feb’2002 Chennai

VGR Impex Pvt.Ltd., Valencia 120 Feb’2002 Chennai Kevin (India) Co. Mombasa 50 Feb’2002 Chennai Gee Gee Khay Chemical Industry

Rotterdam 48 Feb’2002 Chennai


Valencia 72 Feb’2002 Chennai

Siddhi Impex GR 21 Feb’2002 Chennai Tripal International US 20.41 Feb’2002 Chennai

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GB 72 Feb’2002 Chennai

Tripal International US 20.41 Feb’2002 Chennai Gee Gee Khay Chemical Industry

FR 96 Feb’2002 Chennai

Tripal International ES 20 Feb’2002 Chennai Tripal International ES 40 Mar’2002 Chennai Tripal International US 20.41 Mar’2002 Chennai Gee Gee Khay Chemical Industry

ES 72 Mar’2002 Chennai



Tripal International GR 99.23 Mar’2002 Chennai Siddhi Impex GB 22 Mar’2002 Chennai Siddhi Impex GB 22 Mar’2002 Chennai Adheswara (Exports) Pvt. Ltd.,

44 Mar’2002 Chennai

Pioneer Agritechnoscan & Expo.

TN 24 Mar’2002 Chennai

VGR Impex Pvt. Ltd., ES 24 Mar’2002 Chennai Gee Gee Khay Chemical Industry

IT 48 Mar’2002 Chennai


MY 24 Mar’2002 Chennai

Tripal International US 20.41 Mar’2002 Chennai Tripal International US 20.41 Mar’2002 Chennai Gee Gee Khay Chemical Industry

IT 72 Mar’2002 Chennai


AU 24 Mar’2002 Chennai



Tripal International US 19 Mar’2002 Chennai Siddhi Impex AU 22 Mar’2002 Chennai Adheswara (Exports) Pvt.Ltd.,

AE 44 Mar’2002 Chennai

Tripal International NZ 24 Mar’2002 Chennai Dyes & Chemicals Ltd., KE 40 Mar’2002 Chennai Tripal International ES 20 Mar’2002 Chennai Tripal International US 20.41 Mar’2002 Chennai Gee Gee Khay Chemical Industry




Tripal International GR 23 Mar’2002 Chennai Siddhi Impex

GB 22 Mar’2002 Chennai

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IT 120 Apr’2002 Chennai

VGR Impex Pvt. Ltd., ES 96 Apr’2002

Chennai


FR 96 Apr’2002 Chennai

Tripal International

US 20 Apr’2002 Chennai








AU 24 Apr’2002 Chennai

Tripal International AU 22 Apr’2002 Chennai Rubex International GB 24 Apr’2002 Chennai Adheswara (Exports) Pvt. Ltd.,

LK 22 Apr’2002 Chennai


NZ 120 Apr’2002 Chennai

Kevin (India) Co. KE 120 Apr’2002 Chennai Gee Gee Khay Chemical Industry

FR 96 Apr’2002 Chennai


ES 96 Apr’2002 Chennai

Tripal International ES 20.41 Apr’2002 Chennai VGR Impex P.Ltd., ES 120 Apr’2002 Chennai Gee Gee Khay Chemical Industry

MY 24 Apr’2002 Chennai


PT 44 Apr’2002 Chennai

Tripal International ES 20 Apr’2002 Chennai Tripal International US 20 Apr’2002 Chennai Gee Gee Khay Chemical Industry

GR 24 Apr’2002 Chennai


NL 48 Apr’2002 Chennai

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SECTION - V

PRICE DETAILS

Basic price Rs.3200 per tonne of pharmaceutical grade

Rs.2400 per tonne of Agricultural/Technical grade Taxes and duties Extra at actuals

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SECTION - VI

INDIAN DEMAND

6.1. Agricultural sector Like Calcium, deficiency of Magnesium can be a problem in leached acid soils under high rainfall conditions. Magnesium can be leached out more easily as compared to Calcium, making acid sandy soils particularly vulnerable to Magnesium deficiency. It can be a problem in the acid laterite soils in regions in India such as Kerala, Malnad area of Karnataka, Nilgiris in Tamil Nadu, certain areas of Andhra Pradesh under cotton, citrus and banana, in Goa, parts of Himachal Pradesh and in the North-Eastern region. There are also reports of Magnesium deficiency in tea estates and in standing crops of berseem, cotton and wheat in Punjab though the state has no acid soils. 6.1.1. Average nutrient uptake by some crops Crop Economic yield

Tonnes/ha Total removal, Kg

N P K Ca Mg S Rice 3.0 84 14 89 21 9 9 Wheat 3.0 125 22 92 16 14 14 Maize 5.0 170 35 175 27 39 19 Sorghum 2.5 65 10 48 16 12 7 Cassava 45 202 32 286 131 108 15 Onion 37 133 22 177 16 18 34 Tomato 41 84 21 185 31 8 28 Coffee 2.0 253 19 232 143 33 27 Chickpea 1.5 91 6 49 28 11 13 Soybean 2.5 125 43 101 35 19 22 Pigeonpea 1.2 85 8 16 23 15 9 Groundnut 2.0 170 30 110 39 20 15 Mustard 1.5 83 17 71 63 13 26 Sunflower 0.6 38 5 63 41 16 7

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6.1.2. Major user areas ��Tea plantations ��Coffee plantations ��Rubber plantations ��Coconut plantations ��Spices plantations ��Tobacco plantations ��Palm oil plantations 6.1.3. Demand level for Magnesium sulphate in agricultural sector 6.1.4. Pattern of consumption

Tobacco9.99%

Oil palm0.12%

Other perennial crops such as mango, amla,

etc.6.24%

Coconut37.45%

Spices6.24%

Rubber33.71%

Tea 6.24%

Total demand

Around 80100 tonnes per annum

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6.2. Pharmaceutical sector Magnesium Sulphate of IP grade is used in the pharmaceutical sector. Magnesium sulphate is used in pharmaceutical sector as epsom salt. It is also used in the specific pharma formulations. 6.3. Refractory sector Magnesium sulphate is used as binder in the refractory industry. However, refractory industry also uses substitute products such as starch and molasses as binder. The ultimate choice of the buyer would be made depending upon the price factors and availability of substitute products. 6.4 Derivative products The important derivative products

��Magnesium ammonium sulphate ��Magnesium borate ��Magnesium carbonate(preciptated) ��Magnesium fluroide ��Magnesium oleate ��Magnesium oxalate ��Magnesium phosphate ��Magnesium stearate ��Magnesium sulphite

Estimated Indian demand for Magnesium sulphate in pharma sector


Estimated demand for Magnesium sulphate in refractory sector


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6.5. Total estimated demand for Magnesium sulphate Total demand: 82250 tonnes per annum

Sector Demand in tonnes per annum

Agricultural 80100 Pharmaceuticals 150 Refractory 1000 Miscellaneous 1000

Patteern of demand

Agricultural 97.4%

Pharmaceuticals0.2%

Refractory1.2% Miscellaneous

1.2%

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Growth rate in demand The average growth rate in demand for Magnesium Sulphate can be considered to be around 5 to 6% per annum.

Export potentials The export level for Magnesium Sulphate in the recent past have been showing rising trends.

Estimated growth rate in demand

Around 10% per annum

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SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

General details Magnesium Sulphate is made by treating Magnesium carbonate or Hydroxide with Sulphuric acid. As an alternative source, Magnesium sulphate is found in sea water. During solar evaporation of sea brine Magnesium sulphate gets concentrated upto 34.5 Be’ alongwith Magnesium chloride, Potassium chloride and Magnesium bromide except sodium chloride, a major part of which crystallises out between 25.5 deg.Be’ and 29.5 Be’. The end liquor left out after the salt recovery at 29.5 deg. Be’ is considered as a potential source for the recovery of various marine chemicals. On further solar evaporation of this raw material, usually known as bittern, it gets saturated with respect to Magnesium sulphate content at 34.5 deg.Be’. Process description for production of Magnesium Sulphate from brine A mixture (know as Sels mixture) of varying compositions of Magnesium Sulphate and Sodium chloride crystallises during the solar evaporation of the sea bitterns. Six tonnes of `Sels mixture’ is obtained for every 100 tonnes of salt. `Sels mixture’ is chilled to 10 deg.C to crystallise out MgSO4.7H2O which is centrifuged and dried. A slurry containing `mixed salt’ and 36 deg Be, bitterns is stirred in a steam jacketed dissolver at 110 deg.C for 15 to 20 minutes and allowed to settle for 10 minutes. A suspended slurry of kieserite is filtered hot at 110 deg.C through a sparkler pressure filter. The cake obtained mainly consists of kieserite 32 to 37%, Magnesium Sulphate 13 to 15%, Magnesium chloride, 5 to 7%, Sodium chloride 2 to 3%. The cake is dissolved with the requisite amount of water and the solution is heated to 60 deg.C and cooled to the room temperature to crystallise out Epsom salt. On further chilling the mother liquor to 10 deg.C, another crop of Epsom salt is obtained. The Central Salt and Marine Chemical Research Institute (CSMCRI) at Bhavnagar developed a process in which bitterns are pretreated by the addition of excess calcium chloride to remove sulphates. When the t reated hot bitterns are cooled, mixtures of Magnesium sulphate and potassium chloride are separated. The mother liquor is concentrated and cooled for crystallisation of carnallite, a chloride of magnesium and potassium. There are several processes reported in literature for production of mixed salts.

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Source of technology * T.S. Enterprises, Works : E-416 Road No.14 Vishwakarma Ind.Area, Jaipur-302 013 Office : A-151, Nehru Nagar, Jaipur - 302 016. * Regional Research Laboratory (RRL), (A Constituent Establishment of CSIR) Jorhat - 785 006,Assam. Major plant and machinery suppliers Reactors Chemitherm Plants & Systems P. Ltd.,

30, Anandha Street Alwarpet, Chennai-600 018 Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai-600 098, Tamil Nadu

Evaporator Excel Industrial Services White House, D-111/8,Ist Main Road, Anna Nagar (East), Chennai-600 102 Alfa Laval Saunders (India) Ltd., No.18, Gill Nagar, Fist Street Chennai-600 094

Centrifuge

Hydrabad Met Chem. Pvt. Ltd., 34, C.I.E., Phase II, Gandhinagar, Opp. IDPL Colony Hyderabad-500 037 Spark Engineers Pvt. Ltd., 5/332, State Bank Colony II, Salem-636 004

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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 Kaeser Kompressoren India 9 & 10, Symphony `C' Bldg., Range Hill Road Shivaji Nagar, Pune-411 020 V.P. Engineering Plot No.25/8, MIDC, Opp. Hindustan Petroleum, Turbhe, Navi Mumbai-400 705

Crystalliser Febchem Engineering Works Plot No.A/2, Sector A, Sanwer Road, Industrial Area, Indore – 452 003 Kalina Engineering Pvt. Ltd., 34, Surya Kirti Industrial Estate, No.2, Village Ghokiware, Chinch Pada, Vasai (E), Dist. Thane

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SECTION - VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY Raw material requirements Basis One tonne of the product Magnesium ore 1.06 tonne Sulphuric acid 0.91 tonne Utility Installed power 80 HP Fuel 160 litres Raw material availability Indian deposits of Magnesite ore In India, the total reserves of Magnesite, as compiled by Indian Bureau of Mines were estimated at 222 million tonnes in all the states as on January 1, 1985. Out of this 13.67 million tonnes are proved, 128.51 million tonnes probable and balance 79.62 million tonnes in possible category. The deposits are located in Himachal Pradesh, Karnataka, Rajasthan and Tamil Nadu and Uttar Pradesh. Reserves of over 152.921 million tonnes of all grades of Magnesite are estimated from the above deposits. Magnesite mines Number of mines Karnataka 3 Rajasthan 8 Tamil Nadu 9 Uttar Pradesh 3 Deposits in Tamil Nadu The estimated deposits in Tamil Nadu - 65 million tonnes The estimated deposits in Salem district in Tamil Nadu - 64 million tonnes Sulphuric acid * Tanfac Industries, Cuddalore * Binani Industries Ltd., Kerala * VBC Fertilisers & Chemicals Ltd.,

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SECTION IX

GLOBAL SCENARIO

Magnesium sulphate is used as micro nutrient in special application, particularly in Magnesium deficient soils and for plantation such as coffee, tea, etc. Global manufacturers include the following 1. AC Industries Inc., Sattva Chemical Co. Div. 2, Landmark Squore Suite 214 Stanford, CT 06901-2410 USA. 2. Amresco 30175 Soln. Ind Dkwy, Solon, OH 44139, USA. 3. Barrington Chemical Corpn. 16, School St., Rye NY 10580 USA. 4. Charkit Chemical Corp. 9, Old Kings Highway South, Post Box No.1725, Darien CT 06820-1725 USA. 5. Coyne Chemicals 3015 State Road, Croydan PA 19021 USA. 6. Giler Chemical Corporation Post Box No.370, 214 Commerce St., Waynesville, NC 28786 USA. 7. IC Trading Co.Inc., 146-46, 29th Avenue Linder Hill, NY 11354, USA.

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8. International Chemical Inc., One World Trade Centre, Suite 8665, NY 10048 USA. 9. Kali & Salz GmbH Friedrich-Ebert Str. 160 D-34119, Germany. 10. Mallinkrodt 16305 Swingley Ridge Dr. Chesterfield, MO 63077 USA. 11. Pacific West Ind. Co.Ltd., Post Box 26-1134, Taipei, ROC, Taiwan. 12. The PQ Corporation Post Box No.840, Valley Forge, PA 19842 USA. 13. Southern Ionics Inc., PO Drawer 1137, Credit Point MS 39773 USA. 14. Spectrum Bulk Chemicals A Division of Spectrum Quality Products 755 Jersey Avenue New Brunswick, NJ 08901 USA. 15. Total Speciality Chemicals Inc., 360 Connecticut Avenue Suite 150, Norwalk, CT 06854 USA.

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16. Triple S-Chemical Co., 3464 Union Pacific Avenue Los Angles, CA 90023 USA. 17. Stauffer Australia Ltd., 6, Grand Avenue, Camelia NSW 2150/P.O. Box 80 Parametta NSW 2150 Australia 18. Aaron Industries Inc., PO Box 305, Clinton, SC 29325 USA. 19. Frit Industries Inc., Post Box No.850, Ozark, AL 36360 USA. 20. Stoller Chemical Co.Inc., 8582 Katy Free Way Suite 200, Houston, USA.

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SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY , PROJECT COST AND

PROFITABILITY PROJECTIONS Economic capacity : 600 tonnes per annum Project cost : Rs.99 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs 1.1 Cost of land of 1acre at Rs.5.5 lakh per acre 5.5 1.2 Cost of levelling, laying internal roads/fencing and

compound wall

0.55

Subtotal 6.05 2. Building S.No. Description Cost

Rs.in lakhs 2.1 Factory building of area 200 sq.m. at Rs.3200/sq.m. 6.4 2.2 Non-factory building of area 80 sq.m.at Rs.4500/sq.m. 3.6 Subtotal 10 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs 3.1 Cost of basic plant and machinery 31.00 3.2 Instrumentation and control 2.33 3.3 Pipelines and valves 3.10 3.4 Structurals for erection 1.55 Subtotal 37.98 3.5 Octroi, excise duty, sales tax, etc.at 12%� 4.56 3.6 Packaging and insurance charges (2%) 0.76 3.7 Transportation charges (2%) 0.76 3.8 Machinery stores and spares (2%) 0.76 3.9 Foundation charges (2%) 0.76 3.10 Installation charges (2%) 0.76 Total cost of plant and Machinery 46.33

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

Rs.in lakhs 5.1. Electrification 1.00 5.2. Steam boiler and auxillaries 3.00 5.3. Water storage tank, borewell etc. 0.80 5.4. Fuel storage tank 0.80 5.5. Laboratory equipment 0.80 5.6. Office machinery & equipment 0.50 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 0.60

5.8. Diesel generator 4.00 5.9. Effluent treatment 1.50 Total 13.00 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs 6.1. Preliminary expenses 0.80 6.2. Pre-operative expenses:- 6.2.1 Establishment 0.80 6.2.2 Rent rates and taxes 0.80 6.2.3 Travelling expenses 1.00 6.2.4 Interest and commitment charges on borrowings 2.00 6.2.5 Insurance during construction period 1.00 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 6.40 7. Provision for contingency Rs.5.08 lakhs 8. Working capital margin Rs.10.12 lakhs 9. Total project cost Rs.99 lakhs 10. Means of Finance Promoter's contribution Rs.40 lakhs Term loan from financing institutions Rs.59 lakhs Total project cost Rs.99 lakhs

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11. Financial statements A Variable cost

Rs. in lakhs

Raw material and utilities 53.88 Spares and maintenance 2.78 Selling expenses 7.20 Total variable cost (A)

63.86

B Fixed cost

Salaries and wages 12.00 Interest on term loan and working capital loan 16.16 Depreciation 6.24 Administrative expenses 4.32 Total fixed cost (B)

38.72

C. Total cost of production (A+B)

102.58

D. Selling price per kg. (in Rupees)

24.00

E. Annual sales turnover

144.00

F. Net profit before tax (E-C)

41.42

G. Breakeven point in %

48

32

SECTION XI

SWOT ANALYSIS

Strength Adequate availability of raw material

Weakness Competitive market conditions

Opportunity Likely steady demand

Threat Substitution possibilities

33

SECTION - XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATIONS Magnesium sulphate is considered essentially as a low technology oriented commodity product in India. There is no particular entry barrier for the project. The conditions in the market are highly competitive, and therefore the margins for the producers are not high. The product is often sold in credit terms to the agricultural farmers.

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