Extracts from Nandini Chemical Journal, Nov 2008
TALK OF THE MONTH
ISOPRENE - INVESTMENT OPPORTUNITY
PENTAERYTHRITOL – GLOBAL SCENARIO
GEOTHERMAL ENERGY–INDIAN SCENARIO
NEED FOR GLOBAL MINDSET AMONGST CHEMICAL INDUSTRIES TO STAY AHEAD
The prospects for chemical industries continue to remain challenging.
Rising cost of raw material and energy is a big issue facing the chemical industries all over the world. The merger and acquisitions and consolidation of strength by major international producers could make it extremely difficult for several chemical industries in India to survive, which are presently operating in isolation.
There have been enormous efforts on the part of the chemical industries all over the world in recent times to reduce the cost of operation and optimize the cost parameters in whatever way possible for them. Many organizations are willing to shift the production base to developing countries or any other region, if it would lead to competitive cost of production. Many companies are willing to shift production centres to regions where demand exist, instead of transporting the product over long distance at prohibitive freight cost to reach the end consumers.
Custom manufacturing practices are growing quickly . Make or buy decision is becoming extremely critical for the producers to ensure the profitability and cost competitiveness.
Several big chemical and pharma producers in developed countries with strong research and development capability and marketing network are seriously considering plans to shift the manufacturing activity to the customs synthesis units to improve the profitability. This means that in future several of such companies may look upon the manufacturing activity as a non core activity for them.
Since profit is the greatest motive, asking someone else to make the product and confining themselves to be the suppliers of technology and formulation details and buyers of the product that would be custom made for them and retaining the marketing functions can be found to be very attractive by several producers in future, when it would lead to greater profitability. The big companies could shrink in size and would expand in profits and rate of returns.
Global chemical industries are clearly getting ready for such big changes. Such changes would involve reducing both the cost and investment level in manufacturing activities and in the supply chain.
It has now become absolutely necessary for the Indian chemical industries, whether big, medium or small to reposition themselves to exploit the opportunities due to such fast changing approach of the chemical industries players around the world.
The Indian units have to necessarily cultivate a global mindset and keep themselves well informed about the international developments, at least in their sphere of activities. In the present fluctuating conditions, sudden rise or fall in the global prices of commodities and shifting of the production from one region to another in the case of fine and speciality chemicals are the factors that have to be confronted in the day today management. It is imperative that the industries have to take some special steps to keep themselves posted with information and be informed about the opportunities.
While in the case of bulk chemicals and building blocks such as ethylene, propylene etc. and mineral based products such as titanium dioxide and others, shifting of the production facilities from one region to another in quick time would not be possible, in the case of derivative products , speciality chemicals and intermediates, this is bound to happen.
Particularly in the case of medium and small units, if they would maintain globally acceptable standards in shop floor practices, quality control programmes and in getting the facilities certified internationally, the opportunities for growth and improved profits would be enormous by readying themselves to function as custom synthesis units. It is gratifying that some units in India have already well positioned themselves to reap the rewards. But, unfortunately, many others have not been able to do so and such of them may well face difficult problems in the near future.
Several global organizations are now known to outsource even the research and development work, particularly to countries like India where there is large pool of technical manpower. The chain of CSIR laboratories , with huge infrastructure and facilities and considerable technical manpower are yet to exploit such opportunities. While a handful of research laboratories have been moving ahead in this direction, many others appear to be unaware of the opportunities or unequal to the tasks. They have to quickly reorient themselves.
The academic institutions in India, including IITs are yet to make a mark in the international arena about their R&D capabilities to exploit R&D outsourcing business opportunities.
It certainly has a big space to exploit in the case of derivatives, intermediates and speciality chemicals. All that is required is a positive and aggressive attitude and a mindset that is in tune with the global thinking.
Isoprene is a colourless liquid with an aromatic odour.
Isoprene is insoluble in water, soluble in alcohol and because of its low vapour pressure and double bonds, it is very reactive.
Isoprene is an important base material for the production of synthetic rubber and adhesives.
This article contains the following details :
- Important application sectors
- Global supply scenario Period 2008
- Global capacity
- Global producers
- Scenario in Russia
- Global demand scenario
- Global demand for isoprene monomer Period 2008
- Pattern of regionwise demand
- Pattern of application sectorwise demand
- Brief outline of process
- Pattern of process routes adopted
- Technology developments
Pentaerythritol is used in alkyd resins, radiation cure monomers, polyvinyl chloride (PVC) stabilizers, polyurethanes, rosin esters, synthetic lubricants, pigment treatment, antioxidants, and explosives.
Worldwide, 37% is used in alkyd paints, 14.5% in alkyd inks, 11% in alkyd adhesives/sealants, 9% in plasticizers, 8% in alkyd varnishes for floors and woodwork, 7% in radiation cure coatings, 4% in lubricants, 1.3% in explosives and 8.2% in other applications.
Many grades are offered, but the largest is mono (pure) with a minimum purity of 98%.
This article further discusses the following details :
- Process technology
- Global supply level of Pentaerythritol Period 2008
- Global installed capacity
- Global production
- Major players
- Capacity of selected players
- New projects
- Indian imports/exports
Geothermal energy is an alternative renewable source of energy, derived from natural heat stored in the deep interior of the earth. In the last few decades, there is an increase in the use of geothermal energy all over the world, both for power generation and direct heat applications.
There is a total globally installed geothermal capacity of over 8,900 MW for power generation and 27,825 MW for non-electrical purposes, according to the data available till 2005.
Largest users of geothermal energy are US, Philippines, Italy, Mexico, Iceland, Indonesia, Japan and New Zealand.
The use of geothermal energy, however, has certain limitations as it may cause some pollution of land and air due to certain dissolved gases.
Excessive removal of gas from the deeper regions of the earth may cause some problems in the future.
This article further discusses the following details :
- Global scenario
- Indian scenario
- Project in Puga valley
- Anti Dumping Page
- Update On Carbon Trading
- Handling Nuclear Waste In Sweden
- Nanotechnology Safety Issues
- Blacklist Of 200 Chemicals In Europe By Chemsec
- Wind Energy Sector At The Cross Roads
- Geothermal Energy–Indian Scenario
- Open Source Drug Discovery
- Isoprene – Product Profile
- Pentaerythritol – Global Scenario
- Update On Biofuel
- Plans of Indian Railways Biodiesel Projects
- FAO Seeks Review of Biofuel Policy
- China News
- News Round Up –International & India
- Technology Development–International & India
- IG Nobel Award For Innovations
- Pharma Page – International & India
- Gingko Extract – Medicinal Herb
- Agro Chemical Page
- Energy Page – International & India
- Environmental Page
- Prospects For E-Waste Management
- Price Details – International
- New Projects – International
- Ask For Chemical Facts Free
- Chemicals Imported At The Chennai Port During The Month Of August-2008
Nandini Chemical Journal, Annual subscription, 12 issues, sent as a pdf document by email. US $100.