BARIUM NITRATE SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS

Transcription

1 BARIUM NITRATE CONTENTS SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT TRENDS SECTION V PRICE TRENDS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIALS REQUIREMENTS 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 1

2 1.1. General details SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS Appearance Colourless crystals Chemical formula Ba(NO 3 ) 2 Melting point 592 deg.c Specific gravity 3.24 Solubility Insoluble in alcohol. Stability On heating, Barium Nitrate decomposes into Barium Oxide,Barium Peroxide,Nitric oxide, Nitrogen and oxygen Specification for Barium Nitrate for explosives and Pyrotechnic composition IS: Characteristics Requirements Moisture, % by mass, max 0.5 Matter insoluble in water, % by mass, max 0.5 Organic matter 0.1 Hygroscopicity, % by mass, max 0.5 Grit, % by mass, max 0.05 PH (of 5% solution) 5.5 to 7.5 Chlorides (as NaCl) % by mass, max 0.25 Nitrites (as KNO 2 ), % by mass, max 0.03 Chlorates To pass the test Sodium compounds (as NaNO 3 ), % by mass, max 0.5 Ammonium compounds (as NH3), % by mass, max 0.01 Calcium compounds (as Calcium nitrite), % by mass max 0.05 Sulphur Nil Barium nitrate content Ba(NO 3 ) 2, % by mass max SECTION II 2

3 PRODUCT APPLICATIONS Various applications of Barium nitrate make use of its property of easy decomposition as well as its characteristic green flame. Application sector * Pyrotechnics * Green flares * Tracer bullets * Primers * Detonators * Vacuum tube industry Barium nitrate is used as a plaining agent in the manufacture of special glasses and optical glasses in place of the combination alkali metal nitrate - arsenic. The component in pyrotechnics to produce a green colour requires very pure Barium nitrate of 99.5 to 99.8%. The content of other flame colourants - sodium, strontium, calcium must be extremely low. 3

4 SECTION III INDIAN MANUFACTURERS Barium Nitrate is produced by a number of units in small scale sector, which include the following: * Athiappa Chemicals (P) Ltd., A-52 & A55, PIPDIC Indl. Estate, Mettupalayam, Pondicherry * Cosmic Chemicals K-20, MIDC, Tarapur, Boisar, Dist. Thane * Krishna Chemical Company, Plot No.1/20 & 1/21, I.D.A., Gajulamandyam * Rayalaseema Chemicals, 141, Indl. Development Area, Cuddapah Fac : * Ramchand Organic Chemicals 71, Sammandapuram St., Rajapalayam * Sri Annapurna Chemical Industries, Block 12, Flat No.71, Municipal Colony, Malakpet, Hyderabad * TCM Ltd., (Formerly Travancore Chemical & Mfg. Co. Ltd.,) P.B. No. 19, Kalamassery Kerala * Vishnu Chemicals Pvt. Ltd /B/A, Flat No.1 Suvarna House, Sangeetnagar Colony Somajiguda, Hyderabad * Victory Chemicals Pvt. Ltd. A/14-C, SIPCOT Indl. Complex, Post Bag No.3, Cuddalore Indian installed capacity Around 10,000 tonnes per annum. 4

5 SECTION IV IMPORT/EXPORT TRENDS 4.1. Imports Present import level 4000 kg per annum Countrywise Imports Period April 2001 to March 2002 Country Quantity in Kgs China P RP Exports Export level Around 2500 kg per annum Countrywise Exports of Barium Nitrate Period April 2001 to March 2002 Country Quantity in Kgs Korea RP Sample of individual exports Name of the exports Quantity in Value in Rs. Country Date Port tonnes Titan Pharma Ltd., Djibouti to Mumbai Titan Pharma Ltd., Djibouti to Mumbai 5

6 SECTION V PRICE TRENDS Basic price Taxes and duties Rs per tonne Extra as applicable 6

7 SECTION VI INDIAN DEMAND Applications Barium nitrate Pyrotechnics/explosive industry As a plaining agent in glass industry Miscellaneous In tracere bullets In primers In detonators In vacuum mtube industry In India, around 80% of the Barium nitrate goes in the fire works industries; currently consuming around 6500 tonnes per year, on all India basis. The Sivakasi fire works industry alone consumes around 4000 tonnes per year, peak season being August, September, October, February and March. Consumption by opthalmic glass and ceramic industries is around 750 tonnes only currently. In this sector, the demand is not likely to go up much in the coming years Demand 8000 tonnes per annum 7

8 Pattern of demand Miscellaneous 9% Opthalmic glass and ceramic industries 9% Fire works 82% Estimated growth rate in demand: 7 to 8% per annum 8

9 SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS Barium Nitrate can be produced from Barium sulphide, Barium Chloride or Barium Carbonate. Barium sulphide solution reacts directly with sodium nitrate, as per the following reaction. BaS + 2NaNO 3 Ba(NO3)2 + Na2S The heavy metals and the sulphur formed are removed by filtration. Barium Nitrate formed is crystallised at low temperature under vacuum. Alternate process for the production of Barium Nitrate is by double conversion of Barium chloride and sodium Nitrate or Calcium Nitrate. Considering the process conditions as well as material of construction requirements and process economics, production of Barium Nitrate from Barium carbonate is recommended. The detailed process for the production of Barium Nitrate from Barium Carbonate is further explained below: The Nitric acid is diluted with half its volume of water in a reaction vessel and heated to about 70 to 80 deg.c. To the hot dilute acid solution, Baium carbonate is added gradually with continuous agitation, when all the Nitric acid would be neutralised. The solution is filtered, evaporated, and allowed to crystallise overnight in a cool place. On cooling, crystals of Barium Nitrate separate out. The crystals are then dried. By crystallising twice from water and drying overnight at 110 deg.c. the yield can be optimised. Indian trend Commercially, most of the manufacturers in India follow the Nitric acid neutralisation with BaCO 3 due to its simplicity, easy raw material availability, low capital deployment etc. 9

10 Source of technology T.S. Enterprises, Works E-416 Road No.14 Vishwakarma Ind.Area, Jaipur Rajasthan Office : A-151, Nehru Nagar, Jaipur Major plant and machinery and suppliers Name of the equipment Pulveriser Name of the company ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore Frigmaires Engineers PO Box 16353, 8, Janata Industrial Estate Senapati Bapat Marg Opp Phoenix Mill, Lower Parel (W) Mumbai Rotary kiln Veesons Boiler Engineers C-14/2, Industrial Estate, Trichy Nadi Airtechnics EBM - Nadi International Pvt. Ltd. (An Indo-German Joint Venture) 26 and 26/3, G.N.T. Road, Erukkencherry, Chennai , Tamil Nadu Reactors Chemitherm Plants & Systems P. Ltd., 30, Anandha Street Alwarpet, Chennai Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai , Tamil Nadu 10

11 Leaching tank Neutraliser Nutche filter Sharplex Agro Process (I) Pvt. Ltd., 302, Hill View Industrial Estate, LBS Marg Ghatkopar (W), Bombay Sharplex Agro Process (I) Pvt. Ltd., 302, Hill View Industrial Estate, LBS Marg Ghatkopar (W), Bombay Aristo Engineers J-3, Vikas Udyog Nagar, Behind Kasturi Tiwer Phatak-Goddeo Road, Bhayander (E), Thane A.V. Industrial Plastics Corp. 202/Him Shikhar, 1st Floor, Plot No.113 Sector 21, Near Apna Bazar Nerul, Navi Mumbai Bifriends Engineering Works Klm College, Sant Narsi Mehta Marg, Parsiwadi, Ghatkopar (W), Mumbai Evaporator Excel Industrial Services White House, D-111/8,Ist Main Road, Anna Nagar (East) Chennai Alfa Laval Saunders (India) Ltd., No.18, Gill Nagar, Fist Street Chennai Centrifuge Vacuum tray dryer Boilers Hydrabad Met Chem. Pvt. Ltd., 34, C.I.E., Phase II, Gandhinagar, Opp. IDPL Colony Hyderabad Spark Engineers Pvt. Ltd., 5/332, State Bank Colony II Salem V.P. Engineering Plot No.25/8, MIDC, Opp. Hindustan Petroleum, Turbhe, Navi Mumbai Cethar Vessels Ltd., No.4, Dindigul High Road, Trichy Firetech Boilers Pvt. Ltd. 11

12 No.211, 2nd Cross, 38th Main, B.T.M. Layout 2nd Stage, Bangalore-68 SECTION VIII RAW MATERIAL REQUIREMENTS AND AVAILABILITY Basis: One tonne of Barium Nitrate Barium Carbonate Dilute Nitric acid : tonne : tonne Raw Material Availability Source of supply of raw materials Name of the raw materials Barium carbonate Nitric acid Name of the company Chandan Chemicals (P) Ltd., Andhra Pradesh Rayalaseema Chemicals, Cudappah Ramakrishna Chemicals Ltd., Cudappah Sri Annapurna Chemical Industries, Hyderabad Deepak Nitrite Ltd., Baroda Rashtriya Chemicals & Fertilizers Ltd., Mumbai 12

13 Global producers include the following * Solvay & Cie S.A., a) Rue du Prince Albert Brussels SECTION IX GLOBAL SCENARIO * Degussa AG Postfach , D-6000 Frankfurt 11 Degussa-Huls AG Specialty Chemicals Division Sivento, Chemical Catalysts Weissfrauenstrasse 9, D Frankfurt/M,Germany * Barium Chemicals Co. Ltd., Tekko Bldg 8-2, Marunouchi 1-chome Chiyoda-ku, Tokyo 100 * Sakai Chemical Industry Co. Ltd., Head Office : , Ebisuno-cho-nishi Sakai, Osaka * San Yuan Chemical Co. Ltd., 34, Guang-FUH Road Chia Tay Industrial, Tai Pao Chia Yi, Taiwan. * Hummel Corporation Post Box No.250-R South Plain Field, New Jersey, NJ

14 SECTION - XI DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND FINANCIAL PROJECTIONS Economic capacity : 600 tonnes per annum Project cost : Rs 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 Cost of levelling, laying internal roads/fencing and 0.55 compound wall 2. Building Subtotal 6.05 S.No. Description Cost Rs.in lakhs 2.1 Factory building of area 350 sq.m. at Rs.3200/sq.m Non-factory building of area 80 sq.m.at Rs.4500/sq.m. 3.6 Subtotal Cost of Plant & Machinery S.No. Description Cost Rs.in lakhs 3.1 Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection 2.4 Subtotal Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Installation charges (2%) 1.18 Total cost of plant and Machinery

15 4. Technical know-how fees Rs.4 lakhs 5. Miscellaneous fixed assets S.No. Description Cost Rs.in lakhs 5.1. Electrification Steam boiler and auxillaries Water storage tank, borewell etc Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, 1.4 Weigh balance, etc Diesel generator Effluent treatment 0.8 Total Preliminary & Pre-operative expenses: S.No. Description Cost Rs.in lakhs 6.1. Preliminary expenses Pre-operative expenses: Establishment Rent rates and taxes Travelling expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment 0 Total Provision for contingency Rs.8.9 lakhs 8. Working capital margin Rs lakhs 9. Total project cost Rs lakhs 10. Means of Finance Promoter's contribution Term loan from financing instituions Total project cost Rs.46 lakhs Rs.88 lakhs Rs.134 lakhs 15

16 11. Financial statements 11.I. Cost of production A. Variable Cost Rs.in lakhs Raw material and utilities Spares and maintenance 1.20 Selling expenses Total variable cost(a) s B. Fixed Cost Salaries and wages 7.88 Interest on term loan and working capital loan Depreciation 8.11 Administrative expenses 4.56 Total fixed cost(b) C. Total cost of production(a +B) D. Selling price per kg. (in Rupees) 38 E. Annual sales turnover 228 F. Net profit before tax(e C) G. Breakeven point in % 48% 16

17 SECTION XI SWOT ANALYSIS Strength Weakness Opportunity Threat Abundant availability of raw material Environmental issues Export market Competitive conditions 17

18 SECTION XI FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS Barium nitrate is an important intermediate chemical, particularly finding application in pyrotechnic industry, with growing demand The basic raw material namely Barytes is available in India in large quantity. Barium nitrate can be set up in multi product facility, where other Barium chemicals can also be produced. Considering the growth in demand and export opportunity, the project can be favourably considered. 18

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