BUTYL TITANATE SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS

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BUTYL TITANATE 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

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS 1.1 Product characteristics and specifications Alternate name Physical form Tetra normal butyl orthotitanate Pale yellow clear oily liquid Formula Name Tetra Butyl Titanate Chemical Formula Ti (C 4 H 9 ) 4 Molecular Weight 340 Specific gravity 1.00 Density 0.993gm/cc Boiling point At atmospheric pressure, it boils at about 300 deg.c with polymerisation but under reduced pressure it can be distilled out easily 1.2. Reactions One important characteristic is the ease with which it hydrolyses even with traces of water. At atmospheric pressure, it boils at about 300 deg. C with polymerisation but under reduced pressure it can be distilled out easily. Butyl titanate hydrolyses even with traces of water. The compound undergoes reactionssuch as acidolysis,transesterification chelation and double alkoxide formation. SECTION II 2

SECTION II PRODUCT APPLICATIONS 2.1. Applications In the production of heat resistant paint Acts as cross linking agent, in reaction with polyhydroxyl compounds. Application sector Finds use as adhesion promoter due to cross linking reaction. In the preparation of quick drying printing ink Application as water proofing agent As Polymerisation catalyst 2.2. Detailed applications 2.2.1, Application in heat and corrosion resistant paints Butyl titanate itself does not possess any film forming properties, but when mixed with certain metallic pigments such as aluminium, zinc or mica and organic solvents, it forms stable and heat resistant films, which are flexible and extremely adherant to steel surface. Paint based on aluminium metal powder is able to withstand a temperature upto 600 deg. C but is not as corrosion resistant as a different formula based on zinc metal powder, which is also able to resist temperature of 450 deg.c. Polymerised or condensed Butyl titanate is considered more suitable medium than the monomer, particularly for protection of steel under high humidity. For better protection of steel from corrosion, two coatings of paints are necessary, under-coat based on zinc dust and the top-coat based on aluminium powder. The film is required to be cured at 300-350 deg. C for 2 hours. A corrosion preventive coating for metals has been described in which a composition consisting of 50 parts by weight of graphite, 70 parts Butyl titanate and 10 parts white spirit is applied to the metal surface, where it also gives thermal resistance. Certain resins based paint containing condensed Butyl titanate and pigmented with zinc would be suitable for rocket launcher as it shows excellent resistance to short blast of flame, similar to that produced in rocket firing. Butyl titanate based coatings with various heat stable inorganic pigments would be suitable for exhaust pipes, chimneys, furnace doors etc. 3

2.2.2. Other applications in paints Addition of small quantities of Butyl titanate affects some of the properties in certain paints. It is claimed that this additive acts as an antioxidant, thereby controlling the skinning and wrinkling of the paint and improving the durability. Amongst the other properties affected particularly in TiO2 based paints, chalking is said to be reduced and gloss retention improved, the improvement being accompanied by reduction of thixotrophy in the paint. The thixotrophy of the dispersion of red oxide pigment in linseed oil can be markedly reduced by additon of 3% Butyl titanate on the weight of pigment. Butyl titanate can be trans-esterified with amino alcohol giving compounds which may be useful as suitable dispersing agents for paints, varnishes and for the treatment of wooly as well as various textiles. Butyl titanate causes thickening when added to various drying oils. The degree of thickening/gelling depends upon the amount of the additive. This property may be employed in preparation of many products such as linoleum, putty, priming ink etc. The addition of Butyl titanate to oil paints also reduces the drying time, which is due to hydrolysis of the ester causing gelation. Butyl titanate may be incorporated in ready mixed aluminium paint to react with free water, which is responsible for producing substantial pressure within the container during the storage. Castor oil can be modified with Butyl titanate and the resulting product when used as plasticizer for nitrocellulose lacquer is found to give hard, tough and durable film in comparision to raw castor oil. 2.2.3. As cross linking and gelling agents Butyl titanate in reaction with polyhydroxyl compounds acts as cross linking agent or gelling agents, behaviour of which frequently leads to bonding action. The gelling action is itself sometimes useful for modification of resins. The cross-linking of nitrocellulose, cellulose acetate, ethyl, butyl and benzyl cellulose derivatives is the subject of American patents which make use of alkyl titanate. In an example, ethyl cellulose, ethyl lactate, Butyl titanate and xylene are mixed. Another group of resins which organic titante compounds may be included for the purpose of improving the curing properties are the silicone resin. For instance, a methyl phenyl silicone solution is cured by heating for one hour at 200 deg. c in presence of catalytic quantity of Butyl titanate in ethyl acetoacetate, lead naphthenate. A hard solvent resistant coating is obtained with thermal stability. Similar process has also been developed for curing silicone resin lacquer using mixture of orthotitanate or titanium chelates with diketones or amines making them adherent to silicon rubber. The addition of 1 to 2.5% Butyl titanate or similar titanate to linear organopoly siloxane in order to effect a cure at room temperature is recommended. The process is only effective, if the silicone contains at least one-oh group per thousand silicone atom and is brought about by hydrolysis. 4

2.2.4. Application in adhesion promotion Butyl titanate finds use as adhesion promotor due to its cross linking reaction. For example, mould for investment casting may be made by bonding a refractory powder with Butyl titanate in organic solvent. A mixture containing 80% ZrO2, 4% Butyl titanate and 16% xylene is said to give good result. Butyl titanate and other alkyl titanates have been included in a few adhesive compositions and in pressure sensitive tapes. An adhesive material which retains its elasticity after drying is claimed to be obtained by including Butyl titanate in a mixture containing natural or synthetic rubber. 2.2.5. Application in printing ink Orthotitanates such as isopropyl or Butyl titanate are particularly useful for preparing quick drying printing ink. The printing ink vehicle consists of a polyester, a vinyl monomer such as styrene and ortho titanate and when irradiated with ultra violet light, it is said to dry in a fraction of a second. 2.2.6. Application as water proofing agents A considerable volume of literature has been published concerning the use of organic titanate compounds of various types in water proofing of textiles, wood, paper etc. As Butyl titanate itself is not stable towards moisture, it is stabilised by addition of some organic compounds before using as water proofing agent. As an example, a proofing composition is prepared from 67.3 parts max. 11.2 parts Butyl titanate, 4.5 parts Poly hydroxy titanium stearate, 17 parts white spirit. A solution containing from 1 to 15% of the mixture is used. One composition for proofing cotton consists of 1.9 parts of silicone and 0.125 parts tetra Butyl titanate in 98 parts petroleum spirit. After drying, the material is heated to 140 deg. C for 4 minutes and then re-impregnated with a solution of 1 to 5 parts of polyisocyanate in 98.5 parts of petroleum spirit. The material is again heated to 140 deg. C which produces excellent water repellency. The process for producing water proof coating on masonry material like bricks, cement or plaster involves the use of Butyl titanate and an organo polysiloxane resin, for example, methyl phenyl polysiloxane resin. 2.2.7. Application as polymerisation catalyst Butyl titanate as such and in combination with other compounds have been used as polymerisation catalyst. Acrylonitrile is polymerised in presence of a catalyst consisting of sodium naphthoate and butyl-titanate in tetra hydrofuran. Butyl titanate may be used in the preparation of linear polyurethanes. Another process involves the preparation of polyester from diethylene glycol, tris- (hydroxymethyl) propane, adipic acid and catalytic quantity of Butyl titanate by heating it in inert atmosphere. Liquid polymers are formed when propylene oxide is polymerised in presence of Butyl titanate in inert solvent. The polymerisation may be carried out at comparatively low temperature of 45-70 deg. C. 5

2.3. Miscellaneous Application Apart from those applications of Butyl titanate which have been dealt with under individual headings, a wide variety of potential uses have been claimed in the patent literature. A method for producing metal sponge is given in a patent which consists of heating Butyl titanate in presence of iodine with 2% water at about 450 deg.c under inert atmosphere. Butyl titanate has also been patented as vulcanizing aid. 6

SECTION III INDIAN MANUFACTURERS There are a few manufacturers of Butyl titanate in the country. * Shraddha Fine Chemicals 404/1, GIDC, Umreth -388 220 Dist. Kheda, Gujarat * Super Urecoat Industries Shed No. C 1B/1201, Phase IV GIDC - Naroda, Dist. Ahmedabad-382 330 * Synthochem, Madhya Pradesh. Estimated Indian installed capacity Around 200 tonnes per annum. 7

SECTION IV IMPORT/EXPORT TRENDS Import level : Nil Export level : Nil 8

SECTION V PRICE TRENDS Present price level : Rs.325/- per kg Taxes and duties : Extra as applicable 9

SECTION VI INDIAN DEMAND 6.1. General details Butyl titanate is extensively used as pigment in heat and corrosion resistant paint, varnishes and water proofing of fibrous material. Although Butyl titanate is incorporated in many formulations, its use is restricted due to lack of stability towards moisture. This defect can be overcome to some extent by using poly Butyl titanate which is obtained by partially hydrolysing the monomer by passing moist air, or by boiling with aqueous Butanol or aqueous Acetic acid. The utility of Butyl titanate is further extended by some modification in the compound such as partial acylation, trans-esterification and chelation etc. For instance, butoxy titanium acylates may be more stable towards water than the simple ester and hence Butyl titanate modified with fatty acids are found capable of forming films. Indian demand The estimated Indian demand The estimated growth rate in demand Around 120 tonnes per annum. Around 10 to 12% per annum. 10

7.1. General details SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS Titanium chelates are obtained by the interaction of Butyl titanate and chelating compounds, which contain atoms in the end group, which are capable of donating ions to satisfy the two coordinate valency of Ti atom in the ortho ester. Titanium chelates have much greater stability to hydrolysis than the corresponding ester. By the use of chelates, hydroxyl containing polymers can be cross-linked and so in this way films of polyvinyl alcohol, epoxy, cellulose, alkyd resin, etc. can be insolubilised and rendered more resistant to solvent. A number of chelated compounds of titanium are water soluble and yield fairly stable solution. Examples are triethanol amine titanate, titanium acetyl acetone. 7.2. Process outline Titanium tetra chloride (TiCl 4 ) and Butyl alcohol are the production of Butyl titanate. starting raw materials for the Titanium tetra chloride and Butyl alcohol would be subjected to reaction at the temperature level around 70 deg. C in a glass lined reactor. The reaction would be carried out using toluene as the solvent. During the reaction, Butyl titanate would be formed along with chlorine. Ammonia would be injected into the reactor to recover the chlorine in the form of Ammonium chloride, which would be in the crystal form. The contents of the reaction would be subjected to filteration to separate the ammonium chloride crystals, when the filterate would consist of toluene and Butyl titanate. The above filterate would be subjected to distillation to separate and recover the toluene, when Butyl titanate would be produced as the final product. It can be easily prepared by the action of normal butyl alcohol on titanium (IV) chloride and subsequent removal of HCl. Source of technology * National Chemical Laboratory (Council of Scientific and Industrial Research ) Dr. Homi Bhabha Road, Pune 411 008 11

Major plant and machinery and suppliers Name of the equipment Glass lined reactor Name of the company GMM PFAUDLER Ltd., (Gujarat Machinery Manufacturers Ltd.) Regd. Office & Factory: Vithal Udyog Nagar Karamsad-388 325 Gujarat Distillation column Chemac Equipments Pvt. Ltd. Regd. Office & Factory: M.J.D'Souza Compound, Safed Pool, Saki Naka Mumbai-400 072 Hydrabad Met Chem. Pvt. Ltd., 34, C.I.E., Phase II, Gandhinagar, Opp. IDPL Colony Hyderabad-500 037 12

Nutche filter Aristo Engineers J-3, Vikas Udyog Nagar, Behind Kasturi Tiwer Phatak-Goddeo Road, Bhayander (E), Thane-401 105 A.V. Industrial Plastics Corp. 202/Him Shikhar, 1st Floor, Plot No.113 Sector 21, Near Apna Bazar Nerul, Navi Mumbai-400 706 Bifriends Engineering Works Klm College, Sant Narsi Mehta Marg, Parsiwadi, Ghatkopar (W), Mumbai-400 084 Storage tanks Agarwal Associates, 255, Kalpana Society Waghodia Road, Baroda-390 019 Aristo Engineers J-3, Vikas Udyog Nagar, Behind Kasturi Tiwer Phatak-Goddeo Road, Bhayander (E), Thane-401 105 Adam Fabriwerk Pvt. Ltd. 203, Rajguru Apartments New Nagardas Road Andher (E), Mumbai-400 069 B.M. Industries Plot No.5223, Phase IV GIDC, B/h. Klockner Windsor India Limite Vatwa, Ahmedabad-382 445 13

Steam boiler Sri Ranga Industries SF, 739, Ramraj Nagar, Goldwins, Coimbatore-641 014 Firetech Boilers Pvt. Ltd. No.211, 2nd Cross, 38th Main, B.T.M. Layout 2nd Stage, Bangalore-68 Vacuum pumps Southern India Instrumech Pvt. Ltd., 160, Baba Nagar, Villivakkam Chennai-600 049 Travaini-Maneklal Vacuum Technology Pvt. Ltd., Manek Mahal, 7th Floor, 90, Veer Nariman Road, Churchgate, Mumbai-400 020 14

SECTION VIII RAW MATERIAL REQUIREMENTS AND AVAILABILITY Raw materials requirments Basis : One tonne of the product Butyl alcohol Titanium tetrachloride Toluene (makeup) Ammonia 0.96 tonne 0.62 tonne 200 litres 0.22 tonne Source of supply of raw materials Name of the raw materials Butyl alcohol Titanium tetrachloride Toluene Name of the company Somaiya Organics Ltd., Maharashtra Kerala Minerals and Metals Ltd., Quilon,Kerala. Kochi Refineries Ltd., Kochi, Kerala. 15

SECTION IX GLOBAL SCENARIO Global manufacturer * The Mitsubishi Corporation Chemicals Group 6-3, Marunouchi,2-Chome, Chiyoda-Ku, Tokyo - 100 * Nippon Soda Co. Ltd., Ohtemachi Bldg., 2-2-1, Chiyoda-ku,Tokyo-100-8165, Japan. * Kenrich Petrochemicals. Inc 140 East 22 nd St, PO Box No 32, Bayonne, NJ 07002-0032 USA 16

SECTION X DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS Suggested capacity : 60 tonnes per annum Project Cost : Rs.150 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 5.5 1.2 Cost of levelling, laying internal roads/fencing and 0.55 compound wall Subtotal 6.05 2. Building S.No. Description Cost Rs.in lakhs 2.1 Factory building of area 300 sq.m. at Rs.3200/sq.m. 9.6 2.2 Non-factory building of area 60 sq.m.at Rs.4500/sq.m. 2.7 Subtotal 12.3 3. Cost of Plant & Machinery S.No. Description Cost Rs.in lakhs 3.1 Cost of basic plant and machinery 52 3.2 Instrumentation and control 3.9 3.3 Pipelines and valves 5.2 3.4 Structurals for erection 2.6 Subtotal 63.7 3.5 Octroi, excise duty, sales tax, etc.at 12% 7.64 3.6 Packaging and insurance charges (2%) 1.27 3.7 Transportation charges (2%) 1.27 3.8 Machinery stores and spares (2%) 1.27 3.9 Foundation charges (2%) 1.27 3.10 Installation charges (2%) 1.27 Total cost of plant and Machinery 77.69 17

4. Technical know-how fees Rs.5 lakhs 5. Miscellaneous fixed assets S.No. Description Cost Rs.in lakhs 5.1. Electrification 1.2 5.2. Steam boiler and auxillaries 5 5.3. Water storage tank, borewell etc. 0.8 5.4. Fuel storage tank 0.8 5.5. Laboratory equipment 0.8 5.6. Office machinery & equipment 0.8 5.7. Material handling equipment, packaging machinery, 1.2 weigh balance, etc. 5.8. Diesel generator 6 5.9. Effluent treatment 2.6 Total 19.2 6. Preliminary & Pre-operative expenses: S.No. Description Cost Rs.in lakhs 6.1. Preliminary expenses 2 6.2. Pre-operative expenses:- - 6.2.1 Establishment 1.4 6.2.2 Rent rates and taxes 1.4 6.2.3 Travelling expenses 2 6.2.4 Interest and commitment charges on borrowings 9 6.2.5 Insurance during construction period 1.2 6.2.6 Other preoperative expenses and deposits 0 6.2.7 Interest on deferred payment 0 Total 15 7. Provision for contingency Rs. 9 lakhs 8. Working capital margin Rs. 5.65 lakhs 9. Total project cost Rs. 149.89 lakhs 10. Means of Finance Say Rs.150 lakhs Promoter's contribution Term loan from financing institutions Total project cost Rs.60 lakhs Rs.90 lakhs Rs.150 lakhs 18

11. Financial statements Cost of production A Variable cost Rs. in lakhs Raw material and utilities 76.24 Spares and maintenance 4.68 Selling expenses 9.75 Total variable cost (A) 90.67 B Fixed cost Salaries and wages 12 Interest on term loan and working capital loan 18.17 Depreciation 8.64 Administrative expenses 5.85 Total fixed cost (B) 44.66 C. Total cost of production C (A+B) 135.33 D. Selling price per kg. (in Rupees) 325 E. Annual sales turnover E 195 F. Net profit before tax (E-C) 59.67 G. Breakeven point in % 43% 19

SECTION XI SWOT ANALYSIS Strength Weakness Opportunity Threat Availability of proven technology Lack of cost competitiveness in the global market Growing demand Hazardous nature of raw material 20

SECTION XII FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS Butyl titanate is an important intermediate chemical used in the production of paint, resins and coatings Though the demand in quantity terms is not large, there are only a few producers in the country. The raw material Titanium tetra chloride is a hazardous chemical, requiring care in handling. The project can be set up if the project promoter would have the capability to operate technology intensive hazardous chemical project. Considering the relevance of applications, additional capacity is required. 21

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