PRE FEASIBILITY REPORT

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1 GENSYNTH FINE CHEMICALS PVT. LTD. PLOT NO. 220, 239 & 248, PHASE II, IDA, PASHAMAILARAM VILLAGE, PATANCHERU MANDAL, MEDAK DISTRICT, ANDHRA PRADESH PRE FEASIBILITY REPORT Gensynth Fine Chemicals Pvt. Ltd., Plot No.s 220, 239 & 248, Phase II, IDA Pashamailaram (V), Patancheru (M), Medak (Dist.) Phone: , Fax: E mail ID: info@gensynthfinechem.com; b_anandareddy@yahoo.com SUBMITTED TO MINISTRY OF ENVIRONMENT AND FORESTS, GOVERNMENT OF INDIA PARYAVARAN BHAVAN, LODHI ROAD, NEW DELHI

2 Pre Feasibility Report Gensynth Fine Chemicals Pvt. Ltd., Plot No. 220, 239 & 248, Phase II, IDA, Pashamailaram, Patancheru, Medak district, Andhra Pradesh DISCLAIMER The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information. M/s. Gensynth Fine Chemicals Pvt. Ltd., does not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. Therefore, the content of this memorandum should not be relied upon for making any decision, investment or otherwise. The prospective user of this memorandum is encouraged to carry out his/her own due diligence and gather any information he/she considers necessary for making an informed decision. 1. Executive Summary M/s. Gensynth Fine Chemicals Pvt. Ltd., proposed to expand its Synthetic Organic Chemicals and intermediates manufacturing unit in existing plant premises. The company has 2 acres of land in addition to that company acquired additional land of area 0.34 acres at Plot No. 220, 239 & 248, Phase II IDA, Pashmailaram, Patancheru, Medak district, Andhra Pradesh. The site is having a longitude (E) and latitude (N). The plant is surrounded by open land in south and east directions, Tanu petroleum products in north direction and road, M/s. Ogene system pvt. Ltd., in west directions. The nearest human settlement from the site is Phashamylaram located at distance of 2.0 km from the site in Southeast direction. There are no ecologically sensitive areas like national parks, sanctuaries within 10 km radius of the site. 1 P age

3 2. Introduction of the Project / Background Information: 2.1 Identification of Project and Project Proponent: The objective of this pre-feasibility study is to provide information for the expansion of Synthetic Organic Chemicals unit capacity from 200 to 455 Kg/day at Plot No. 220, 239 & 248, Phase II IDA, Pashmailaram, Patancheru, Medak district, Andhra Pradesh, in an area of 2.34 acres. The project representative Mr. B. Ananda Reddy (Manager Technical) is a M.Sc Ph.D in organic chemistry from JNTU with over 20 years of extensive experience in the area of Pharma intermediates & API s process developments. 2.2 Brief Description of Nature of the Project: The synthetic organic chemicals manufacturing will involve series of chemical reactions to get the final Product. The products of reaction are purified, filtered and dried before packing the final product. The Chemical reactions require various supporting services like Heating, Cooling and Agitation etc. 2.3 Need for the project and its importance to the country and or region: World population is growing at an alarming rate. In the Indian sub continent population growth is more than that of developed countries. To meet the needs and comforts of ever-growing population industrialization became inevitable. For the growing population the needs of health care substitutes are also increasing. 2.4 Demands-Supply Gap: The project is envisaged to meet the demand supply gap in both domestic market and export market, as API demand is increasing day by day. 2.5 Imports Vs. Indigenous Production: The project shall meet the reduce imports in some of the intermediate products and also enhance the foreign exchange reserves in view of the proposed exports of few products. 2.6 Domestic/export Markets: The products shall cater to both domestic and export markets. 2 P age

4 2.7 Employment Generation (Direct and Indirect) due to the project: The present project for manufacturing of Synthetic Organic Chemicals requires substantial handling of raw materials, goods in process and finished goods. It is expected that the following employment will be generated by the project: Staff Technical & Non Technical Description No.s Factory Manager 1 Production 20 Engineering 3 Supporting Staff 5 Work force Project Description 3.1 Type of Project including interlinked and interdependent projects, if any: M/s. Gensynth Pharma Chem proposes to set up a Synthetic Organic Chemicals unit in an area of 2.45 acres at Plot No. 82-A, APIIC Industrial Park, Gajulamandyam Village, Renigunta Mandal, Chittor District, Andhra Pradesh. 3.2 Size or magnitude of operation: List of products and manufacturing capacity Manufacturing Capacity After Expansion S.No Name of the Product Capacity TPM Kg/Day 1 (-)-1-[(4-Chlorophenyl) ({henyl) Methyl] piperazine Chloro-6,6-dimethyl hept-2-en-4-yne N-Benzyl-N-Methyl-2-Benzoyl Ethane Amine HCL ethoxy-4-(ethoxy carbonyl)phenyl]acetic acid Chloro-6-ethyl-5-fluro piperdine Methyl-4-[(5-amino-1-methyl-1H-indole-3-yl)-3-methoxy benzoate N-Methyl-Napthyl Amine HCL Trityl CandesartanCelextil Atorvastatin Calcium Ketorolac Tromethamine Levocetirizine Hydrochloride Levofloxacin Hydrochloride Moxifloxacin Hydrochloride Valsartan (2-ethoxyphenyl)-5-methyl-7-propy-3H- imidazo[5,1-f][1,2,4]-triazin one 16 3 methyl 1- ( 2 piperidin- 1- yl phenyl ) butan- 1- amine glutarate salt Total-Worst Case 5 Products P age

5 3.3 Process Description with process details (a schematic diagram/flow chart) 3.4 Raw material required along with estimated quantity likely source, marketing area of final product/s, mode of transport of raw material and finished product. All the raw materials required for manufacturing mostly available in India or from abroad. There are no banned chemicals or products which are proposed to be used. It is proposed to enter into long term arrangements with some of the raw material suppliers both in India and overseas to avoid shortages at any time. 3.5 Availability of water its source, energy/power requirement and source should be given The total water requirement shall increased from KLD to 62.9 KLD after expansion out of which 38.9 KLD shall be drawn from tankers and balance shall be recycled water. The total water balance is presented table below. Total Water requirement After Expansion (Tentative) Purpose INPUT (KLD) OUTPUT (KLD) Fresh Water Recycled Water Loss Effluent Process Washings 1 1 Scrubber 2 2 Boiler Feed Cooling Tower RO/DM Plant 6 6 Domestic Gardening 2 2 Gross Total Total Electricity: The requirement of power will be 640 KVA. Further, due to the nature of the reactions and requirement of continuous power. Therefore no delay or difficulty is foreseen on the power front. 4 P age

6 3.6 Quantity of wastes to be generated (liquid and solid) and Scheme for their Management/disposal Quantity of Effluent Generated and Mode of Treatment After Expansion (Tentative) Description of Effluent Quantity (KLD) Mode of Final Disposal HTDS Effluents Process Washings Scrubbers Treated in effluent treatment plant consisting of Stripper, MEE, ATFD and Biological treatment followed by RO. RO Permeate reused for cooling tower makeup and RO rejects sent to MEE. Total HTDS 11.8 LTDS Effluents Boiler Blow Down 2 Biological treatment followed by RO. Cooling Tower Blow Down 2 RO Permeate reused for cooling tower makeup Domestic Effluent 2.5 and RO rejects sent to MEE. Total LTDS 6.5 Solid Wastes and Disposal After Expansion (Tentative) S.No Description Units Quantity Mode of Disposal Permitted Proposed 1 Ash from Boiler TPD Sold to Brick manufactures 2 Solvent Residue TPD Sent to TDSF/ Cement 3 Process Residue - Organic TPD Industries for Co-processing 4 Stripper KLD Condensate 5 Spent Carbon Kg/Day Hyflow Kg/Day Sent to TSDF 7 Inorganic Residue TPD Catalyst Kg/Day Returned to manufacturers 9 Evaporation Salts TPD Sent to TSDF 10 ETP Sludge TPD Detoxified No.s/ Sold to authorized Vendors containers Month 12 Waste oil LPM Sent to Authorized Recyclers 13 Used batteries No.s/ year P age

7 4. Site Analysis 4.1 Plant Location The site is longitude (E) and latitude (N). The plant is surrounded by open land in south and east directions, Tanu petroleum products in north direction and road, M/s. Ogene system pvt. Ltd., in west directions. The nearest human settlement from the site is Phashamylaram located at distance of 2.0 km from the site in Southeast direction. There are no ecologically sensitive areas like national parks, sanctuaries within 10 km radius of the site. 5. Planning Brief: The project is envisages to be completed by December 2014, and the production shall be initiated thereon. Consultants are identified for preparing the detailed project report. 6. Proposed Infrastructure: 6.1 Power Requirement and Supply/Source The total power requirement is 640 KVA. 6.2 Utilities List of Utilities S.No Utility Permitted Proposed 1 Coal Fired Boiler 1TPH 2 TPH 2 FO Thermic Fluid Heater 1.2 lac K.cal/hr DG Set* 140 KVA 500 KVA * DG set will be used during load shut down. Equipments The basic technology involved in the manufacturing of Bulk drugs is the process Kettles, Heat Exchangers, Centrifuges, and Storage Tanks. To support the process equipment Boilers, Chilling plants, Cooling Towers Etc. are required. All the above equipment can be sourced indigenously and the lead time to supply the equipment will not exceed 20 weeks. 6 P age

8 6.3 Waste management Liquid Effluents The main sources of effluent generation from the plant are process, washings, Scrubber, blow downs from utilities like cooling tower, boiler & domestic effluents. The process effluents are segregated on the basis on TDS and COD loads and treated in Effluent treatment system. The effluent generated from the domestic sent to septic tank followed by soak pit. Air Pollution The sources of air pollution from the plant are proposed 2 TPH and permitted 1 TPH coal fired Boilers and DG set of proposed 500 KVA and permitted 140 KVA capacity. The emissions from the boilers are passed through a multicone cyclone before releasing into atmosphere through a chimney. The stack heights are provided as per the guidelines of CPCB for effective stack heights. Solid waste Solid wastes are generated from the process, solvent distillation, distillate from stripper, salts from ATFD, sledges from ETP (primary & secondary), waste oil from DG sets, used batteries from DG sets. The stripper distillate, process residue and solvent residue are sent to TSDF/cement plants for co-incineration. The evaporation salts are sent to TSDF. Filter media like spent carbon, catalyst and hyflow are sent to TSDF. Waste oil and used batteries from the DG sets are sent to authorized recyclers. The sludge from effluent treatment plant is considered hazardous and the same is sent to TSDF. The ash from boiler is sold to brick manufacturers. The other solid wastes expected from the unit are containers, empty drums which are returned to the product seller or sold to authorize buyers after detoxification. 7. Rehabilitation and Resettlement (R&R) Plan Not applicable as the land area is only 2.34 acres already acquired. 7 P age

9 8. Project Schedule & Cost Estimates 8.1 Likely date of start of construction and likely date of completion (Time schedule for the project to be given) December Estimated project cost along with analysis in terms of economic viability of the project The estimated cost of the project is approximately Rs. 3 Crores. Project Cost Rs. In lacs Plant& machinery 150 Civil buildings 20 Structures 15 Total 185 Pipe lines & insulation 20% on plant & machinery 23 Electricals & instrumentation 10% on plant & machinery 15 Erection & commissioning & painting 8% on plant & machinery and structures 15 Land & development 3 Material handling equipment charges 1.5 Laboratory equipment 18 Safety eqpt 4.5 Furniture, fixtures, computers, lighting etc 8 Total 273 Contingencies & pre-operative expenses 5% on the above 27 Project Cost P age