PRE-FEASIBILITY STUDY ON PURIFICATION OF ORGANIC SOLVENTS

Transcription

1 PRE-FEASIBILITY STUDY ON PURIFICATION OF ORGANIC SOLVENTS Pakistan Council of Scientific and Industrial Research. PCSIR. HEAD OFFICE Constitution Avenue, Sector G-5/2, Islamabad. Pharmaceutical Research Centre Pakistan Council for Scientific and Industrial Research, Government of Pakistan Note: All Services / information related to PM s Youth Business Loan are Free of Cost April, of 12

2 1. DISCLAIMER The PCSIR is not liable for any loss, damage or expense during the implementation and execution of the project. All terms and conditions will be clarified in MoU. In this document, we provide the information regarding the subject matter. The material of whole the document is based upon the data and information collected from various reliable sources which may differ from case to case. The information has been provided on as is where is basis without any warranties or assertions as to the correctness or soundness thereof. Leather Research Centre PCSIR, its employees do not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. The contained information does not preclude any further professional advice. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information which is necessary for making an informed decision, including taking professional advice from a qualified consultant/technical expert before taking any decision to act upon the information. 2. PURPOSE OF THE DOCUMENT The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, and production, marketing, finance and business management. The purpose of this document is to facilitate potential investors in fat-liquors by providing them a general understanding of the business with the intention of supporting potential investors in crucial investment decisions. The need to come up with pre-feasibility reports for undocumented or minimally documented sectors attains greater imminence as the research that precedes such reports reveal certain thumb rules best practices developed by existing enterprises by trial and error, and certain industrial norms that become a guiding source regarding various aspects of business set-up and it s successful management. Apart from carefully studying the whole document one must consider critical aspects provided later on, which form basis of any Investment Decision. Keeping in view the up-gradation and strengthening of R&D institutions of the country, it is a necessary requirement for the future development of commercialized Processes / Technologies / Products invented by the scientists / engineers in public and private sectors. The broad outline of Government policies are the industrialization by public and private sector. The skilled personnel, institutions and resources are important to play a vital role in developing of the economy. Pakistan needs a high rate of economic growth in an effort to lift the population out of poverty. Rapid industrialization was viewed as a basic necessity and as a vehicle for economic growth. The investigation of commercialized products is the need of today. 2 of 12

3 3. INTRODUCTION TO PCSIR LABORATORIES COMPLEX, KARACHI Pakistan Council of Scientific and Industrial Research (PCSIR) created in 1953, is a premier scientific and industrial research organization in the country with its laboratories located at Karachi, Lahore, Peshawar, Quetta, Hyderabad, Skardu and Islamabad. PCSIR Laboratories Complex, Karachi is one of the laboratories of PCSIR and is engaged in doing research, development, testing / analysis / calibration, consultation and production activities. PCSIR Laboratories Complex, Karachi is the first analytical laboratory of Pakistan to be awarded Accreditation to ISO by Pakistan National Accreditation Council (PNAC). The main objectives of PCSIR are effective utilization of national resources for self reliance and development of export oriented technologies. Thousands of analytical / technical services had been provided to public and private sectors. A large number of patents & processes have been leased to industrial sector for commercialization. The sealed patent documents contain legally all true claims and after getting such documents the inventor is able to commercialize its patent and also enable to reinforce. 4. EXECUTIVE SUMMARY PCSIR Laboratories Complex, Karachi is one of the laboratories of PCSIR and is engaged in doing research, development, testing / analysis / calibration, consultation and production activities. PCSIR Laboratories Complex, Karachi is the first analytical laboratory of Pakistan to be awarded Accreditation to ISO by Pakistan National Accreditation Council (PNAC). Thousands of analytical / technical services had been provided to public and private sectors. A large number of patents & processes have been leased to industrial sector for commercialization. As PCSIR is the biggest R & D organisation in the country and the Karachi Laboratories Complex is the biggest among all units of PCSIR, doing R & D and publish papers in National & International Journals of high impact factor. KLC has skilled Scientist & Technologist and most of the scientists are Ph. D. in their relevant subject. Completed many in house R&D and funded projects. For the execution of the business with PCSIR Laboratories Complex, Karachi skilled manpower will help the entrepreneur; there is direct or indirect generation of employment. By only investment of approx. Rs. 2 million, production of five products and their commercialization will take place. This prefeasibility will start a small business which latter on capture the whole market. 5. INTRODUCTION TO SCHEME Prime Minister s Youth Business Loan, for young entrepreneurs, with an allocated budget of Rs.5.0 billion for the year , is designed to provide subsidized financing at 8% markup per annum for one hundred thousand (100,000) beneficiaries, through designated financial institutions, initially by the National Bank of Pakistan (NBP) and the First Women Bank Limited (FWBL). Loans from Rs.0.1 million to Rs.2.0 million with tenure up to 8 years inclusive of 1 year grace period, and a debt: equity of 90:10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Area (FATA). 3 of 12

4 6. BRIEF DESCRIPTION OF PROJECT & PRODUCT Most of our laboratories and industries use imported chemicals and solvents due to commercial non-availability of these chemicals in local market. It results in the expense of huge amount of valuable foreign exchange and it is also time consumable. So by the development of indigenous technology for the production of industrially important chemicals/solvents will full fill our country s industrial and R&D requirements and will result in saving foreign exchange and self-reliance. Purity in solvent is a matter of degree. All commercially available chemical substances have some impurities. The impurities may be unreacted starting material, intermediates, byproducts, isomers and related compounds may be present. Other contaminations in solvents arise from storage in metal drums and plastic containers and from contact with grease and screw caps. 0.1 to 5 ppm of plasticizers are present as impurities in solvents from which make it unsuitable for use in solvent extraction. Many solvents contain water. Organic compounds may undergo changes on storage. Most of the impurities can be removed by prior distillation of the solvent. In organic solvents there is a range of qualities ranging from laboratory chemical to spectroscopic, chromatographic and electronic grades. List of Solvents to be Prepared: 1. Methanol Reagent Grade 2. Ethanol Reagent Grade 3. Methanol HPLC Grade 4. Anhydrous Methanol 5. Ethanol Double Distilled 6. And other solvents on demand Ethanol and Methanol Reagent Grades The solvents like ethanol and methanol of reagent grade are widely use in R & D organization as well in industries and in universities. The process has been developed for the preparation of reagent grade ethanol and methanol from commercially available ethanol and methanol. The impurities in ethanol are diethyl ether, aldehydes, ketones and esters and have to remove by different methods. Methanol of HPLC Grade Methanol of HPLC grade is extensively used in spectrophotometer such as HPLC and in LC- MS/MS due to its high solubility in water. Benzene is present in traces which make it unfavourable for ultraviolet spectroscopy, and can t be used as HPLC solvent. Absolute methanol free from acetone is suitable for use as a fixative and in preparing various romanowsky type staining solutions. Methanol also used for solid phase protein sequence analysis etc. Anhydrous methanol Anhydrous methanol is another important solvent which has vast application in synthesis and can be used in industry and in universities. Methanol contains common impurities, water, up to an extent of 500 ppm and to make it anhydrous, water has to remove. As methanol is well miscible with most organic solvents, therefore it is a good solvent for organic compounds. Anhydrous methanol is used in reactions where water free solvents are required. 4 of 12

5 Ethanol Double Distilled The benzene is present as impurity in ethanol and can be removed by double distillation. Absolute ethanol has wide application in industries, universities and in R&D organizations. Reagent grade ether and ethyl acetate are also having high demand. The process for the purification of these solvents is already done and can be supplied on demand. 7. CRITICAL FACTORS Unavailability of raw material in local market. Lack of marketing and advertisement of the products in public and private sectors. Lack of awareness about intellectual property rights for the protection of process and products. Higher return on investment and a steady growth of business is closely associated with regular training and capacity building of the entrepreneur and employee. Higher prices make the quality products less reachable as compare to cheap and low grade products. 8. INSTALLED & OPERATIONAL CAPACITIES See the number 12 (PROJECT COST SUMMARY) 9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT Karachi, Lahore and big cities of Pakistan. 10. POTENTIAL TARGET MARKETS Local Market, Universities, R&D and S&T Organizations, Industries 5 of 12

6 11. PRODUCTION PROCESS FLOW Process flow diagram for the production of anhydrous methanol & other solvents Raw Material Chemicals Reaction vessel Reflux Distillation Finish Product Packaging Supply to the Market 6 of 12

7 12. PROJECT COST SUMMARY A detailed financial breakup is given to analyse the commercial viability of the products under the Prime Minister s Youth Business Loan scheme. Name of Product / Activity : Purification of organic solvents Capacity : 100 L / Batch Production Time per Batch : One Day Packaging Size : 1.0 to 2.5 L 12.1 Project economics Production capacity 24,000 L per year each product (100 L per day) The following table shows Internal Rate of Return and Payback Period Table 1: Project Economics Description Details Internal Rate of Return (IRR) 40% per year Payback Period (yrs) Project Financing Table 2: Project Financing Description Details Total Equity (10%) Rs. 195,000/- Bank Loan (90%) 17,55,000/- Mark-up to the Borrower (% age / annum) 8% Tenure of the Loan (Year) 8% Grace Period (Year) 1 7 of 12

8 12.3 Project Cost Following requirements have been identified for the operation of the proposed business. Table 3: Project Cost Sr. # Capital Investment Amount (Rs.) 1. Permanent Equipments 650,000/- 2. Furniture & Fixture 110,000/- 3. Office Equipments 64,000/- 4. Expandable Supplies 600,000/- 5. Human Resource Development ((HRD) 444,000/- 6. Utilities 82,000/- Total 19,50,000/ Space Requirement Area has been calculated on the basis of space requirement for production, management and storage. T able 4: Space Requirement Sr. # Space Requirement Yards 1. Management building Processing Area Open Area Total Area 60 Yards Premises may be obtained on Rs. 20,000/ to 30,000/ per month 12.5 Permanent Equipments: The following permanent equipments are required. Table 5: Permanent Equipments Sr. # Items Quantity Rs. (in rupees) 1. Distillation unit (50 L), with One 225,000/- complete accessories (condenser etc) 2. Heavy duty Heating Mental (50 L) One 175,000/- 3. Chiller One 250,000/- Total 650,000/ Furniture & Fixture 8 of 12

9 Table 6: Furniture & Fixture Sr. # Items Quantity Amount Rs. (in rupees) 1. Chairs Rs ,000/- 2. Revolving Chair Rs ,000/- 3. Office Table Rs ,000/- 4. Fans Rs ,000/- 5. Split (1.5 Ton) Rs. 65,000 65,000/- Total 110,000/ Office Equipments Table 7: Office Equipments Sr. # Items Quantity Amount Rs. (in rupees) 1. Computer Desktop One 39,500/- 2. Computer Printer One 18,000/- 3. Net Working One 5,000/- 4. Telephone Rs ,500/- Total 64,000/ Expandable Supplies: Table 8: Expandable Supplies Sr. #. Items Amount Rs. (in rupees) 1. Chemicals and Raw Materials 250,000/- 2. Glass Ware 50,000/- 3. GC, GC-MS, LC & LCMS columns of different 225,000/- absorbents 4. Head space vials with magnetic caps 25,000/- 5. Miscellaneous or Contingencies e.g., Patents, Publications, Postage, Stationary etc. 50,000/- Total 600,000/- 9 of 12

10 12.9 Human Resource Development (HRD) Table 9: Human Resource Development ((HRD) Sr. # Item Qualification Salary Per Year 1. Lab. Technician Inter Science / B. Sc. Rs. 360,000 (01 Rs. 30,000/-per With experience of month, with annual increment) handling lab. equipments 2. Un-Skilled Person Matric/ Non Matric 84,000/- (01 Rs. 7,000/-per month, with annual increment) Total 444,000/ Utilities Table 10: Utilities Sr. #. Utility Cost Required Per Batch 1. Electricity Rs. 4,000 / Batch Rs. 80,000 / Month 2. Water Rs. 100 / Batch Rs / Month Total Rs. 82,000/- Grand Total: Table 5 to Table 10 = Rs. 19,50,000/- (1.95 Million) Revenue Generation Table 11: Revenue Generation Sr. # Items Unit Price/ 2.5 L First Year Production Quantity First Year Revenue Generation 1. Methanol Reagent Grade Rs.1000 / 2.5 L 20,000-24,000 L* Approx. 8 Million* 2. Ethanol Reagent Grade Rs.1250 / 2.5 L 20,000-24,000 L* Approx. 10 Million* 3. Methanol HPLC Grade Rs.1200 / 2.5 L 20,000-24,000 L* Approx. 9.6 Million* 4. Anhydrous Methanol Rs.1850 / 2.5 L 20,000-24,000 L* Approx. 14 Million* 5. Ethanol Double Distilled Rs.1800 / 2.5 L 20,000-24,000 L* Approx. 14 Million* * As per demand 10 of 12