PRE FEASIBILITY REPORT INCREASE IN THE PRODUCTION OF PENTAERYTHRITOL FROM 560 MTM TO 730 MTM & SODIUM FORMATE FROM 336 MTM TO 480 MTM

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1 PRE FEASIBILITY REPORT INCREASE IN THE PRODUCTION OF PENTAERYTHRITOL FROM 560 MTM TO 730 MTM & SODIUM FORMATE FROM 336 MTM TO 480 MTM (PRODUCT IS IN POWDER & SOLUTION FORM) at SIPCOT INDUSTRIAL COMPLEX, CUDDALORE, TAMILNADU, INDIA ASIAN PAINTS LIMITED Penta Division, B-5 to B-10, SIPCOT Industrial Complex, Kudikadu Village, Cuddalore, Tamil Nadu

2 CONTENTS 1 Executive Summary Introduction of the Project and Background Information Identification of the Project and Project Proponent Brief Description of Nature of Project Need for the Project and its Importance to the Country Demand Supply Gap Project Description Type of Project Including Interlinked and Interdependent Projects Location of the Project Details of Alternate Site Size or Magnitude of Operation Project Description with Process Details Raw Material Required along with Estimated Quantity Resource Optimization/ Recycle and Reuse Availability of Water and its Source Power Requirement Quantity of Wastes to be Generated (Liquid and Solid) and Scheme for their Management Disposal Industrial Waste Management Solid Waste Management Method of Disposal of HZW Site Analysis Connectivity Land Form, Land Use and Land Ownership Topography along with Map Existing Land Use Pattern Existing Infrastructure

3 4.6 Soil Classification Climatic Data from Secondary Sources Social Infrastructure Available Planning Brief Planning Concept Population Projection Land Use Planning Assessment of Infrastructure Demand (Physical & Social) Amenities/Facilities Proposed Infrastructure Industrial Area (Processing Area) Residential Area (Non Processing Area) Greenbelt Social Infrastructure Connectivity Drinking Water Management Industrial Waste Management/ Solid Waste Management Power Requirement Supply and Source Rehabilitation and Resettlement Plan Project Schedule and Cost Estimates Likely Start Date and Completion Estimated Project Cost

4 List of Tables Table 1 Salient Features of the Site... 5 Table 2 Expansion Details... 7 Table 3 Production Capacity of Pentaerythritol Table 4 Raw Material Requirment Table 5 Power Requirement Table 6 Hazardous Waste Generation Table 7 Details of Solid Waste which are not listed in the current consent Table 8 Climatic Data Table 9 Land Breakup Details Table 10 Existing Infrastructure Table 11 Project Cost Estimation

5 1 Executive Summary Asian Paints is India s leading paint company with a consolidated turnover of ` 15, crores (158.4 billion). Asian Paints along with its subsidiaries have operations in 19 countries across the world with 26 paint manufacturing facilities, servicing consumers in over 65 countries through Berger International, SCIB Paints Egypt, Asian Paints, Apco Coatings, Taubmans and Kadisco. Asian Paints has also marked its foray into the Home Improvement and Décor space in India with the acquisition of Sleek group a kitchen solutions provider and Ess Bathroom Products - a prominent player in the bath and wash segment in India. Asian Paints Limited is headquartered in Mumbai, Maharashtra. Asian Paints is India's largest and Asia's fourth largest paints company (mentioned in Coatings world 2016 top companies report (July 2016). As of 2016, it is the leading paint company in India (mentioned in Cyber Media Research Limited). Asian Paints Limited, Penta Division intends to increase the production of Pentaerythritol and Sodium Formate within the existing plant in an existing plant encompassing an area of Acres situated in SIPCOT Industrial Complex, Kudikadu Village, Cuddalore District, Tamil Nadu. The proposed expansion is the production of Pentaerythritol from 560 MTM to 730 MTM, and Sodium Formate from 336 MTM to 480 MTM in solid and solution form. The prominent features of the proposed expansion project is given in Table 1. Table 1 Salient Features of the Site Sl.no Description Details 1 Name of the Project production of Pentaerythritol from 560 MTM to 730 MTM, and Sodium Formate from 336 MTM to 480 MTM, by Asian Paints Limited, Penta Division 2 Schedule as per EIA 5(f), Synthetic Organic Chemicals Notification, 14 th September Area required Acres, Establishing within the Existing facility, hence no further land required for expansion. 4 Location Located in SIPCOT Industrial Complex, Cuddalore, Tamil Nadu. 5 Plot No Plot no B5 B10 6 Site Elevation Ranging from 5 to 8 meters above MSL 7 Cost of the Project Rs 4.8 Crores 8 Total water requirement 695 KLD will be sourced from SIPCOT supply(no change) 9 Nearest Railway Station Capper Quarry Railway Station 400 meters West 10 Nearest Highway NH 45A Chennai to Nagapattinam 20 meters West 5

6 11 Nearest City Nearest city- Cuddalore Old Town 4 Km N District Headquarters Cuddalore 7 KM NW 12 Mean Maximum Temperature C 13 Mean Minimum Temperature C 14 Seaport Connectivity Cuddalore 3.5 km North 15 Water Bodies Uppanar River 0.5 km Perumal Lake 5.0 Km Bay of Bengal 3.0 Km 16 Forest Area None in Study Area 17 Archaeological Places None in Study Area 6

7 2.0 Introduction of the Project and Background Information 2.1 Identification of the Project and Project Proponent M/s Asian Paints limited, Penta Division located at plot no B5 B10 SIPCOT Industrial Complex, Kudikadu Village, Cuddalore is engaged in manufacturing of Pentaerythritol and Sodium Formate. The proposed expansion project is establishing at a capital cost of Rs 4.8 Crores. Asian paints limited is the India s largest paint company and is amongst the top 10 decorative paint manufacturing companies in the world with operations across 22 countries and 30 manufacturing plants. The company has an enviable reputation for world class EHS practices with corporate philosophy to much beyond environmental compliance. Penta division of Asian Paints at Cuddalore has been accredited with ISO 9001, and OHSAS certifications. The expansion details is given in Table 2. Table 2 Expansion Details Details Existing (MTM) Proposed (MTM) Pentaerythritol Sodium Formate This Pre-feasibility Report is based on proven production technology, market demand, site suitability with respect to environmental norms, available infrastructure and economic viability of the project. 2.2 Brief Description of Nature of Project Pentaerythritols are speciality chemicals finding application in manufacturing of resins used in protective coatings, as an additive in synthetic lubricants used in aviation industry apart from other numerous applications. Sodium Formate finds application in the chrome tanning process for the processing of leather and onshore drilling process. Penta plant is going to be made modern with field level automations and effective utilisation of manpower. The raw material requirement for the production of Pentaerythritol consists of Acetaldehyde, Formaldehyde, Caustic and Water. Quantity may vary based on the final grades/product mix of Pentaerythritols. Pentaerythritol is a speciality chemical finding application in manufacturing of resins used in protective coatings, as an additive in synthetic lubricants used in aviation apart from other numerous applications. Sodium formate finds application in the chrome tanning process for the processing of leather and onshore drilling process. 7

8 Asian Paints Limited, Penta Division intends to increase the production of Pentaerythritol and Sodium Formate within the existing plant in an existing plant encompasses an area of Acres situated in SIPCOT Industrial Complex, Kudikadu Village, Cuddalore District, Tamil Nadu. The proposed expansion is the production of Pentaerythritol from 560 MTM to 730 MTM, and Sodium Formate from 336 MTM to 480 MTM in solid and in solution form. 2.3 Need for the Project and its Importance to the Country Requirement of Pentaerythritols in India is growing at the rate of 6.5 %. CAGR is driven by strong growth in Industrial and Automobile sector. Growing disposable income along with growing life style aspirations of people have resulted into increased demand for paints which use Pentaerythritol as one of the input Raw Material. Looking at the Indian markets and availability of appropriate technology, it is proposed to increase production of Pentaerythritol & Sodium Formate since the market is well developed in many parts of India. 2.4 Demand Supply Gap At present the consent limit of Pentaerythritol by Asian Paints is 6720 MTPA while the market demand for Pentaerythritol in India in FY 2017 is 31,000 MTPA with a growth rate of 6.5%. The main key consumers for the pentaerythritol in India are Asian Paints Limited, Berger Paints and Kansai Nerolac. Consumption of Pentaerythritol by Asian Paints itself is approximately. 31% (9610 MTPA). India imports 19,000 MTPA from the global markets. Import of Penta come from Perstrop (Saudi & Sweden) about MTPA followed by Japan, Taiwan and China. This expansion will help country save on valuable foreign exchange while increasing revenue from exports. 8

9 2.5 Export Possibility Domestic/Export Markets The finished products will be sold in domestic market and in export markets in USA, Colombia and Netherlands. 2.6 Employment Generation The plant will be modernized with field level automation & it will further reduce manual intervention. Therefore, requirement for additional manpower is not required for the project. 9

10 3.0 Project Description 3.1 Type of Project Including Interlinked and Interdependent Projects There are no interlinked or inter dependent projects on this Plant. 3.2 Location of the Project The activity will be carried out within the existing plant located in SIPCOT industrial complex, Kudikadu Village, Cuddalore District, Tamil Nadu. The site is at a distance of about 0.5 Km from National highway 45A. The coordinates of the site is N and E, the mean average of the site is ranging from 5 to 8 meters above MSL. 3.3 Details of Alternate Site Since the proposed project is expansion of production of Pentaerythritol from 560 MTM to 730 MTM, and Sodium Formate from 336 MTM to 480 MTM, by Asian Paints Limited, Penta Division within the existing plant premises located at SIPCOT, Cuddalore. No additional land is required for the proposed capacity expansion. Hence, alternate sites were not considered. The existing project site is having following infrastructure amenities: Availability of utilities electricity and Process Water Availability of land, approach roads& accessibility to highway. Topography of land & geological aspects Nearness to rail head, transport logistics. 3.4 Size or Magnitude of Operation Asian Paints Limited, Penta Division has proposed to increase the production of Pentaerythritol from 560 to 730 MTPM and sodium formate from 336 MTPA to 480 MTPM through process automation, reliability improvement projects, de-bottlenecking and process optimization at SIPCOT industrial complex. 3.5 Project Description with Process Details Proposed increase in the production capacity from 560 MTM to 730 MTM of Pentaerythritol and from 336 MTM to 480 MTM of Sodium Formate. The production rates of proposed expansion is given in Table 3. The increase in production capacity is envisaged through 10

11 Process Modification. Process Automation Reliability improvement Debottlenecking activities Process Automation It is proposed to do field level automation and online conductivity measurement for Deioniser section for operations. It is proposed to do field level automation in Mono Pentaerythritol section for avoiding chocks and quality consistency. Process Modification proposed for improvement in Quality Currently we are able to cater few grades of Pentaerythritols only. Demand from market for higher purity Pentaerythritols is proposed to be met by way of the following activities: 1) Maintaining the Formaldehyde concentration from 10% to 11.5 % in the reaction stage. 2) Better purification through additional washings in the filtration and centrifuge operations. 3) Reducing the operating cycle of Deionizer resin columns by frequent regenerations. De - bottlenecking Activities proposed for increase in capacity The following number of debottlenecking activities are proposed to enhance the production capacity of the plant: Pre-cooling of formaldehyde solution - To cool the formaldehyde solution prior to reaction start up in a tank and then start the reaction process to reduce batch cycle time. Reducing cycle time To increase pumping capacities in Reactor and Evaporator section to increase the process throughput. Augmentation of Heat exchangers to improve heat recovery. Improved cooling tower performance to cater to the additional heat load on account of increased throughput. Modification in piping around reactor - Reduction of reaction cycle time by providing faster draining of residual hold up material from the reactor. Elimination of Transfer delays by automation in the specific batch processes such as reaction and mono pentaerythritol section. To replace in process tanks with higher capacity and crystallising facility to cater to the increased production requirement. 11

12 Table 3 Production Capacity of Pentaerythritol Number of Reactions /day MT per Reaction for avg 30 operating days in a month 18 Existing Production MTS per month (including Penta solution ) Details of proposed Debottlenecking Activity Pre Cooling of Formaldehyde Solutions. Proposed Reduction in Batch cycle time (minut es) Reaction Batches per day for avg 30 operating days in a month Increase in reaction nos. per day due to the propo sed changes Proposed increase in Production (including Penta soluti on) MTS/Day Proposed increase in Production MTS/Month % Contribution to proposed increase in capacity Elimination of Transfer delays by automation. Modification of piping around reactor: Revamping of pumping facilities in Reaction. Total savings Total Proposed increase in Production from current level in MTM 730 Total no. of reactions after modification/ day Production per month of Pentaerythritol in Metric Tonne per month including Pentaeythritol solution 730 Production per month of Sodium Formate in Metric Tonne Production per month including Sodium Formate solution 480 Maximum operating days considered is 30 in a month. 3.6 Raw Material Required along with Estimated Quantity Methanol, acetaldehyde and Caustic Soda are the main raw materials required for the production. The details are given in Table 4. Sl. No Table 4 Raw Material Requirment Raw Material Existing Requirement, MT/Month Expected Requirement, MT/Month Mode of Transport 1 Methanol Tanker 2 Acetadehyde Tanker 3 Caustic Soda Tanker 3.7 Resource Optimization/ Recycle and Reuse The following hierarchy is followed for waste management with an ultimate aim of Zero Waste. 12

13 Resource Conservation Elimination of Waste Streams Minimizing Waste Reuse of Wastes Recycle of Wastes Treatment and Disposal for making wastes harmless Wash water generated from cleaning of equipment s will be re-used back into the process/product. 3.8 Availability of Water and its Source Make up water for the expansion of the plant is estimated to be 695 KLD which will be supplied by the SIPCOT. There is no change in water consumption envisaged Power Requirement The plant has a captive power generation, a steam generation of 30 TPH boiler will be used and coal as a primary fuel. The power required is given in Table 5. Table 5 Power Requirement Captive power plant Existing Proposed Expansion Power 1.5 MW 1.5 MW Steam generation 16 TPH 30 TPH** ** Spare Boiler of 14 TPH capacity will be used to increase the required steam generation Additional standby boiler of (8-10 TPH) capacity will be procured to cater for the startup operations. 3.9 Quantity of Wastes to be Generated (Liquid and Solid) and Scheme for their Management Disposal Industrial Waste Management Hazardous waste from process (ETP Sludge and Spent Carbon) is being sent to TSDF facility IWMA Gummidipoondi. The amount of HZW anticipated to generate is given in Table 6. Handling and disposal of HZW shall comply with TNPCB norms. 13

14 Table 6 Hazardous Waste Generation Solid Waste Type Existing Quantity Expected Quantity Mode of Disposal Spent Carbon (Kg) To authorised waste processing agency Used Spent Oil To authorised waste processing (Lts) agency Waste Oil (Lts) To authorised waste processing agency Sludge (Tons) * TSDF Gummidipoondi, Chennai * In order to obtain the desired purity level in the products, regeneration rate of deioniser column will increase from every 1.5 days to every day due to faster saturation of resin column Solid Waste Management There are two types of solid wastes generated process wastes and non-process wastes, which may or may not be hazardous in nature. The waste water from manufacturing process, washings, etc. will get treated in the effluent treatment plant and that will give rise to sludge. The other type of solid wastes generated will include the dust collected from dust collectors, empty barrels (metal and plastic), bags, sweepings and other biodegradable waste from canteen. Solid waste of organic nature such as canteen wastes, STP sludge, sweepings etc. will be composted or vermin composted for use as manure in the greenbelt and lawns. Other non-hazardous waste like empty container, bags, paper/cardboard, metal, wooden waste etc. will be sold to external agency. The hazardous waste will be disposed of through authorized TSDF as land filling. The following solid waste is expected during the implementation of the proposed project, details given in Table 7. Table 7 Details of Solid Waste which are not listed in the current consent Waste type Kgs Expected Quantity( Kgs) Ion Exchange Resins 9600 Used Insulation Material 4100 Use HDPE bags 5200 Used Filter Clothes Method of Disposal of HZW The hazardous waste will be sent for disposal into hazardous waste landfill site authorized by the State Government. Mitigation Measures to be adopted 14

15 Hazardous waste will be sent to an authorized TSDF site. All hazardous wastes shall be securely stored, under a shed for eventual transportation to the authorized TSDF, the solid domestic waste shall be stored within the premises temporarily and then sent to common solid waste disposal facility 15

16 4.0 Site Analysis 4.1 Connectivity The site is at a distance of about 0.5 km from National Highway NH45A. The nearest railway station is Cuddalore at a distance of 5 Km, site is at a distance of 200 km from Chennai International Airport, and 5 km from sea port. 4.2 Land Form, Land Use and Land Ownership Asian Paints Limited, Penta Division intends to increase the production of Pentaerythritol and Sodium Formate within the existing plant in an existing plant encompasses an area of Acres situated in SIPCOT Industrial Complex, Kudikadu Village, Cuddalore District, Tamil Nadu. The proposed expansion is located in the notified industrial area. 4.3 Topography along with Map The topography of the site is flat and less undulated. The slope gradually tends to lean from SW to NE, the elevations are ranging from 5 8 meters above MSL. 4.4 Existing Land Use Pattern The project location is established in notified Industrial Area. 4.5 Existing Infrastructure Required infrastructure facility are prevailing in the proximity of existing project site. 4.6 Soil Classification The texture of the soil investigated and found out to be a sandy soil. 4.7 Climatic Data from Secondary Sources Cuddalore experiences a Tropical wet and dry climate, the yearly meteorological data of the Cuddalore is taken from IMD data IMD data is given in Table 8. 16

17 Month Temperature 0 C Table 8 Climatic Data IMD Station Cuddalore N, E Humidity % Rainfall mm Wind speed kmph Min Max 8.30 Hrs Hrs Monthly mm No of rainy days Predominant wind direction Jan NE Feb NE Mar SE Apr SE May SE June SW July SW Aug SW Sep SE Oct SE Nov NE Dec Source : GoI, Ministry of Earth Sciences, IMD, Climatological Norms N 4.8 Social Infrastructure Available All infrastructure facilities such as education, health facilities and other social facilities are adequate at district headquarter. 17

18 5.0 Planning Brief 5.1 Planning Concept Asian Paints Limited, Penta Division has proposed to increase the production of Pentaerythritol from 560 to 730 MTPM and sodium formate from 336 MTPA to 480 MTPM through process automation, reliability improvement projects, de bottlenecking and process optimization at SIPCOT industrial complex. 5.2 Population Projection The study area of 10 Km has been studied for projected population, it s observed that 46 villages are present near the study area with a total literacy population of 49,976 out of total population 83, Land Use Planning The proposed activity will be carried out within the existing plant located in SIPCOT industrial complex, the identified plot has an area of Acres. The land breakup details of the site is given in Table 9. Table 9 Land Breakup Details Sl. No Description Area in Acres % Allocation 1 Plotted Industrial Area Greenbelt Roads Lawn and garden Total Area Assessment of Infrastructure Demand (Physical & Social) The proposed expansion is within the well-established industrial area notified by Government of Tamil Nadu. The demand for infrastructure physical and social may not be required for the expansion project. The SIPCOT industrial area is well developed to cater the needs of the industries. 5.5 Amenities/Facilities The amenities/ facilities are already existing in the plant, hence no new facilities are as such required. Potable drinking water Firefighting/ alarm system and ambulance is available in case of emergency 18

19 Drinking water, canteen and electricity facilities is provided Separate sanitation facilities is provided for men and women. PPE s and facilities related to safety will be provided. Occupational Health Centre with qualified doctor is available for periodical health check-up of employees. Greenbelt is developed in and around plant. 19

20 6.0 Proposed Infrastructure 6.1 Industrial Area (Processing Area) The typical equipment list of the whole operations for existing and expansion of the plant is given in Table 10. Table 10 Existing Infrastructure Sl.No Description 1 Equipment s 2 Raw Material Handling and Storage System 3 Weighbridge 4 Mixing Equipment 5 Pneumatic Diaphragm Pumps 6 Centrifugal Pumps 7 Automation system 8 Area Lighting 9 Air compressors / Instrument Air system 10 Emulsion & Water storage tanks 11 Filling Machine and packing system 12 Storage & retrieval system 13 Soft Water Plant 14 Electricals, Automation & Controls 15 Firefighting & Safety Equipment 16 Pollution Control System 17 DG Set 18 Boiler 19 Turbine 20 Cooling tower 21 Effluent Treatment Plant, Reverse Osmosis Plant, Zero Liquid Discharge unit. 22 Diesel and fuel oil storage area 23 Methanol storage 6.2 Residential Area (Non Processing Area) The proposed expansion is in notified industrial area. Residential development is not allowed. 6.3 Greenbelt Asian Paints Limited will continue to develop greenbelt in the plant premises. We maintain the existing greenbelt in an area of 15.7 Acres and its the survival rate is 75-80%.Green belt within our campus not only add up as an aesthetic feature but also act as pollution sink. 6.4 Social Infrastructure Social infrastructures like hospitals, schools, universities are present in vicinity of plant area. 20

21 6.5 Connectivity The site is at a distance of about 0.5 km from National Highway NH45A. The nearest railway station is Cuddalore at a distance of 5 Km, site is at a distance of 200 km from Chennai International Airport, and 5 km from sea port. 6.6 Drinking Water Management The source of water will be provided by SIPCOT. 6.7 Industrial Waste Management/ Solid Waste Management All hazardous wastes shall be securely stored, under a shed for eventual transportation to the authorized TSDF, the solid domestic waste shall be stored within the premises temporarily and then sent to common solid waste disposal facility. 6.8 Power Requirement Supply and Source The plant has a captive power generation of 1.5 MW. Available steam generation capacity of upto 30 Tonnes per Hour (TPH) will be used and coal is the primary fuel. New additional standby boiler of 8-10 TPH capacity will be sourced in Rehabilitation and Resettlement Plan There is no existence of displaced habitant in the proposed area. The proposed expansion is already establishing in notified industrial area. 8.0 Project Schedule and Cost Estimates 8.1 Likely Start Date and Completion Major Construction activities are not envisaged. Since, the changes involve the following: Process Modification. Process Automation Reliability improvement Debottlenecking activities 8.2 Estimated Project Cost Total estimated cost of the project is Rs 4.8 Crores, the detailed breakup of the cost estimation is given in Table

22 Table 11 Project Cost Estimation SL.No. Facility details for expansion from 560 to 730 MTM Cost In Rs Lakhs 1 Pultruded Cooling tower 35 2 Field automation & online conductivity measurement in Deioniser section 6 3 Revamp of Reverse Osmosis plant & provision of Solar Drying facility 81 4 Pneumatic conveying and storage system for products 35 5 Silo system for fly ash handling & Filter press for sludge handling Fixed Life line system for all RM & overhead pipeline in fire protection system Revamp pumping facilities in Evaporator & flash steam recovery system provision 8 Revamp of Water Treatment Plant 30 9 Process Tanks, PHEs and related equipment to increase production capacity Boiler (8-10 ) TPH (will be planned in ) Modern coal handling system (completed) 50 Total

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