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GROWTH OF CHEMICAL INDUSTRY

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Wednesday, December 3, 2014

Chemical industry, complex of processes, operations, and organizations engaged in the manufacture of chemicals and their derivatives. The chemical industry comprises the companies that produce industrial chemicals. It can be described as the industry that uses chemistry and manufactures chemicals. Chemicals have contributed in various sectors like food industry, fertilizers, perfumery, fragrance and flavor etc. There are numerous chemicals produced in chemical industry for example chloroform, caffeine, fertilizers , dyes, drug intermediates, herbicide, inorganic salts, copper sulphate, acetaldehyde etc. Depending on the product categories the chemical industry is divided in many other sectors like drugs and pharmaceuticals, fertilizers, fine chemicals like dyes and paints etc.

The Chemical Industry is one of the most important industries in the modern world. The polymers and plastics are used for construction pipes, tools, materials like acrylics, appliances, electronic devices, transportation, toys, games, packing, clothing and textiles like nylon and polyester, among many other products. Acts are involved in almost every industrial process and are essential in other industries. Polymers come from petrochemical raw materials like liquefied petroleum gas (LPG), natural gas and crude oil or petroleum.

The chemical industry produces 3 types of chemicals-

1) Basic chemicals

2) Specialty chemicals

3) Consumer chemicals

Indian chemical sector has grown a long way since its early days of independence. The sector has grown from a small-scale sector to multi-dimensional sector, which is taking on the challenges of globalization. The chemical industry in India which generates almost 13% of total national export is growing annually at a growth rate anywhere between 10% and 12%.The Chemical Industry in India is based on the idea of diversification. For example inorganic chemicals is the sector where the growth rate is near about 9% and the chemicals produced in this sector are mainly used in alkalis, fertilizers, etc. Driving force of the Indian chemicals market was the demand for pharmaceuticals, but also pesticides as well as colors and paints showed an exceptional market performance. During 2005-06, the industry contributed 17.6% of the manufacturing sector. However the country continues to be a net importer, with exports of US$ 5.95 billion and imports of US$7.92 billion.

 Growing at an average rate of 12.5%, the Indian chemical industry offers a wide spectrum of opportunities for the investors both from India and the world. In the world production of chemicals, Indian industry stands at 12th position. The bulk of chemicals produced in India comprise either upstream products or intermediates, which go into a variety of manufacturing applications

Further information:

The Complete Technology Book on Chemical Industries describes detailed information on subject. The  major contents of this book are- 2-Chloro-6(Trichloromethyl)-Pyridine, Alkyl amines, Alum, Bleaching Powder, Caffeine, herbicide, industrial gases, industrial helogens ,inorganic salts, linalol, perfumery fragrance and flavor, plasticizer, Chemical and Additive for Food Industry, Chloroform (Trichloromethane) CHCl3, Coumarin (C9H6O2), Construction Material, Drug Intermediates & Pharmaceuticals, Dry Cleaning Solvent, Dyes and Intermediates, Ester Gum, Fertilizers, Industrial Gases, Industrial Halogens, Inorganic Chemicals - With Multipurpose, Inorganic Salts, Litharge (Lead Monoxide, Yellow Lead Oxide),zinc sulphate, sulfur and sulfur acid, solvents etc.

In order to get”The Complete Technology Book on Chemical Industries” please visit –

http://goo.gl/o1EuyG

Source: NPCS Team

NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

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NPCS also publishes varies process technology, technical, reference, self employment and startup books, directory, business and industry database, bankable detailed project report, market research report on various industries, small scale industry and profit making business. Besides being used by manufacturers, industrialists and entrepreneurs, our publications are also used by professionals including project engineers, information services bureau, consultants and project consultancy firms as one of the input in their research.

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:
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We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.

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The report contains all the data which will help an entrepreneur find answers to questions like:
  • Why I should invest in this project?
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  • What are the costs involved?
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The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product. The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction
  • Project Introduction
  • Project Objective and Strategy
  • Concise History of the Product
  • Properties
  • BIS (Bureau of Indian Standards) Provision & Specification
  • Uses & Applications
Market Study and Assessment
  • Current Indian Market Scenario
  • Present Market Demand and Supply
  • Estimated Future Market Demand and Forecast
  • Statistics of Import & Export
  • Names & Addresses of Existing Units (Present Players)
  • Market Opportunity
Raw Material
  • List of Raw Materials
  • Properties of Raw Materials
  • Prescribed Quality of Raw Materials
  • List of Suppliers and Manufacturers
Personnel (Manpower) Requirements
  • Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel
Plant and Machinery
  • List of Plant & Machinery
  • Miscellaneous Items
  • Appliances & Equipments
  • Laboratory Equipments & Accessories
  • Electrification
  • Electric Load & Water
  • Maintenance Cost
  • Sources of Plant & Machinery (Suppliers and Manufacturers)
Manufacturing Process and Formulations
  • Detailed Process of Manufacture with Formulation
  • Packaging Required
  • Process Flow Sheet Diagram
Infrastructure and Utilities
  • Project Location
  • Requirement of Land Area
  • Rates of the Land
  • Built Up Area
  • Construction Schedule
  • Plant Layout and Requirement of Utilities
Assumptions for Profitability workings
Plant Economics
Production Schedule
Land & Building
  • Factory Land & Building
  • Site Development Expenses
Plant & Machinery
  • Indigenous Machineries
  • Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets
  • Furniture & Fixtures
  • Pre-operative and Preliminary Expenses
  • Technical Knowhow
  • Provision of Contingencies
Working Capital Requirement Per Month
  • Raw Material
  • Packing Material
  • Lab & ETP Chemical Cost
  • Consumable Store
Overheads Required Per Month And Per Annum
  • Utilities & Overheads (Power, Water and Fuel Expenses etc.)
  • Royalty and Other Charges
  • Selling and Distribution Expenses
Salary and Wages
Turnover Per Annum
Share Capital
  • Equity Capital
  • Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals
  • Revenue/Income/Realisation
  • Expenses/Cost of Products/Services/Items
  • Gross Profit
  • Financial Charges
  • Total Cost of Sales
  • Net Profit After Taxes
  • Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements
  • Current Assets
  • Gross Working. Capital
  • Current Liabilities
  • Net Working Capital
  • Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets
  • ROI (Average of Fixed Assets)
  • RONW (Average of Share Capital)
  • ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios
  • D.S.C.R
  • Earnings Per Share (EPS)
  • Debt Equity Ratio
Annexure 7 :: Break-Even Analysis
  • Variable Cost & Expenses
  • Semi-Var./Semi-Fixed Exp.
  • Profit Volume Ratio (PVR)
  • Fixed Expenses / Cost
  • B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume
  • Resultant N.P.B.T
  • Resultant D.S.C.R
  • Resultant PV Ratio
  • Resultant DER
  • Resultant ROI
  • Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status
  • Equity Capital
  • Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks
  • Determined Capacity P.A of Products/Services
  • Achievable Efficiency/Yield % of Products/Services/Items
  • Net Usable Load/Capacity of Products/Services/Items
  • Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation
Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit
Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,
Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit
Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses
Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges
Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses
Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses
Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)
Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)
Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits
Annexure 35 ::Projected Pay-Back Period And IRR