Highlights of Some of the Articles from the Print Edition

In this issue..

KEY SUCCESS FACTORS FOR INDIAN CHEMICAL INDUSTRIES

The chemical industries in India are certainly not progressing as it should. It is confronted by several issues and problems some of which are beyond its control. The raising raw material costs and transportation expenses have resulted in margin squeeze for several units and have introduced some sort of instability in the chemical companies.

In the case of several chemical companies, more than 60% of the cost incurred is on account of fuels, whose prices are going up sharply without anyone having a clue as to where it would stop.

At the same time, there are some glimmering hopes, as the exports from Indian chemical industries grew up by 21% in the last fiscal compared with 18 percent in the previous year. The knowledge and talent level of the professionals in the Indian chemical industries are now recognised abroad, which is evident from the desire of several multi national organisations to develop a hub for research and development and who look for outsourcing product development work from India.

Chemical industries is a very important sector of growth in India and it contributes roughly 7% of India’s GDP. It’s potential to contribute more to GDP is enormous, if only India could nurture the chemical industries and guide it in the appropriate growth direction.

While this is so, there are disturbing aspects in the chemical industries such as the near elimination of small scale industries in the shape of things to come in near future. As a result, investments in the industries have to largely come in medium and large sector resulting in a situation, where the number of entrepreneurs venturing into the chemical industries are drastically coming down.

There is still uncertainty with regard to the appropriate strategies for chemical industries in India in tune with the emerging global scenario and to reposition itself advantageously in the global context. There is need for distinct change in the mind set of those involved in the management of chemical industries in India. While such change in mind sets are taking place, they are not done with the speed that is desirable.

A number of chemical and pharma units have recently gone for overseas acquisition and investments. While this would give satisfaction to every one, this seems to be more due to thrill of “becoming multi national company” by Indian entrepreneurs. It is extremely doubtful as to whether careful analysis of the comparative strength and weakness of individual companies venturing abroad have been made vis a vis the real multinational giant companies who invest internationally as a matter of compulsion to sustain the growth. Many of the Indian companies that have gone for overseas acquisitions are tiny by size compared to the multinational companies venturing internationally. The Indian companies, have a lot of things to do in India itself and there is really no compulsive need to become “multinational”.Spreading one’s wings in a wider base without necessary inherent strength could result in misadventure and inability to pay adequate attention to details and survive in the competitive market in the long run.

The logic of several multi national organisations going for global investments and setting up plants in different parts of the world are totally different from the logic of the Indian units. Many western based multinational companies go abroad for investment due to lack of space in their own regions, which is not the case with regard to India. For example, the companies like Shell or Dow going for investments in countries like China cannot be taken as model for companies in India indulging in similar exercises abroad.

In the coming years, the key success factors for Indian chemical industry would be to focus on its strength from the point of view of raw material availability, technological capabilities and capability to operate with high ethical standards in relationship and operations meeting the global expectations. Obviously, the strength of the Indian chemical industry is not in setting up large capacity petrochemical projects, as India has nearly exhausted its petrochemical feedstock resources and the future petrochemical industry cannot be built up entirely on imported feedstock in view of several uncertainties.

Appropriate strategies of growth based on strong technology base would represent the ideal method for going forward.

The immediate challenge is to go big in the field of biofuel based on jatropha but appropriate policy initiatives from the government are still inadequate.

Responsible Care is the global chemical industry’s environmental, health and safety (EHS) initiative to drive continuous improvement in performance. It achieves this objective by meeting and going beyond legislative and regulatory compliance, and by adopting cooperative and voluntary initiatives with government and other stakeholders.

Responsible Care is a commitment that seeks to build confidence and trust in an industry that is essential to improving living standards and the quality of life.

The Responsible Care Global Charter arose from an examination of chemical industry practices and performance that has evolved since the mid-1980s, and was shaped by considering the recommendations of independent stakeholders (SustainAbility) survey published in February 2004. The Charter goes beyond the original elements of Responsible Care. It focuses on new and important challenges facing the chemical industry and global society, including the growing public dialogue over sustainable development, public health issues related to the use of chemical products, the need for greater industry transparency and the opportunity to achieve greater harmonization and consistency among the national Responsible Care Programmes currently implemented.

The International Council of Chemical Associations (ICCA), through responsible Care, will continue to undertake actions consistent with the environmental principles of the United Nations Global Compact.

This article further discusses the following details

• Core Principles
• Elements of Global Charter
• Adopt Global Responsible Care Core Principles
• Chemical Companies that implement Responsible care
• Enhance the Management of Chemical Products World-wide Product Stewardship
• Actively support National and Global Responsible Care Governance Processes
• Address Stakeholder Expectations About Chemical Industry Activities and products
• Provide Appropriate Resources to Effectively Implement Responsible care

This article discusses the application aspects and process technology as well as Indian import/export trends for Docosahexaenoic Acid (DHA).

Characteristics

The omega-3 fatty acids are Eicosapentaenoic acid (EPA) and Docosahexaenoic acid(DHA) DHA is a long-chain polyunsaturated fatty acid with important nutraceutical and pharmaceutical applications.

Arachidonic ACID (ARA) (C2H32O2) is a colourless oil. ARA is a long chain fatty acid which in combination with DHA support infant brain development.

Use Pattern

Foods intended for use in energy-restricted diets for weight reduction. 200 mg/meal replacement

Note: All food products containing DHA-rich oil from Schizochytrium sp. should demonstrate oxidative stability by appropriate and recognised national/international test methodology

This article further discusses the following aspects :

• Product details
• Specification for Docosahexaenoic acid (DHA)
• Depression
• Heat Disease
• Infant Development
• Other Conditions
• Occurrence and Availability
• Starting Material for the Process
• Process from Microalgae
• Separation of Docosahexaenoic acid (DHA)
• Production Steps
• DHA Production Process
• Processing of DHA based on standard seed oil processing technology
• Available Forms
• Technology Development
• Producers
• Approval Status
• Demand Trends
• Imports at Chennai Port

Types of Liner Alpha olefins

Linear alpha olefins are a range of industrially important alpha-olefins.

* 1-butene
* 1-hexene
* 1-octene
* 1-decene
* 1-dodecene
* 1-tetradecene
* 1-hexadecene
* 1-octadecene and
* Higher blends of C20-C24, C24-C30, and C20-C30 ranges.

Product Characteristics

Specifications

This article further discusses the following aspects :

• Applications
• Major End Uses
• Minor End Uses
• Storage and Handling
• Manufacturing Process
• Process Development
• Producers of Commercial Full Range Process
• Producers of Commercial on purpose Process
• Producers of New Full Range Process
• Source of Technology
• Global Scenario
• Global Installed capacity
• Regionwise Installed capacity
• Major Global Producers and Installed Capacity
• Unit not in operation
• New Projects
• Market Characteristics
• Use Level
• Global Demand
• Growth Rate in Demand
• Global Supply Scenario and Industry Prospects
• Recommendation
• Alpha Olefin From Oleochemical Feedstock
• Import Details of Alpha Olefins at Chennai, JNPT and Mumbai Ports

Chemical Weapons Convention is a universal non-discriminatory, multilateral, Disarmament Treaty that bans the development, production, acquisition, transfer, use and stockpile of all chemical weapons.

The Treaty puts all the States Parties on an equal footing. Countries having stockpiles of chemical weapons are required to declare and destroy them in a specified time frame and those who produce and use chemicals that can be conveniently converted into chemical weapons have to be open and transparent about the use of these chemicals.

This article contains the following details :

• Destruction of Chemical Weapons
• Destruction/Conversion of Chemical Weapons Production Facilities
• Status of State Parties
• Obligation of CWC on Chemical Industries
• Compliance of Chemical Industries
• Schedule Chemicals

BIOTECH CROPS - STATUS REPORT

Ten years after GM crops were first cultivated commercially, the debate whether they should be grown at all still continues unabated. In Europe and the United States, the debate might remain focused on issues relating to environment and food safety. However, in developing countries like India, issues are different and the stakes are higher. For the ordinary farmer, the possibility that GM crops could make things better or worse is an issue of life or death. No wonder, India experienced the greatest proportion growth for any biotech crop globally in 2005, with biotech cotton (Bt cotton) production soaring by 160%.

R& D EFFORTS OF EUREKA IN EUROPE

Since its in inception in 1985, EUREKA has helped Europe’s industries fulfil their formidable potential in world markets through the promotion of collaborative, market-led, innovative R&D ventures. This strategy showed great foresight in anticipating the globalisation of the world’s economy and has already had a significant impact. Strengthened by two decades of success, EUREKA would continue to enhance the productivity and competitiveness of European industry in the coming years-particularly through its support for small and mediumsized enterprises (SMEs) and its closeness to the market.

GLYCERINE PLANTS BEING CLOSED DOWN

Glycerine is produced as bye product during the process of transesterification of vegetable oil. With the rapid creation of capacity for the production of biodiesel in different countries, glycerine is becoming a surplus commodity globally.

Two glycerine units belonging to Dow Chemical and P & G have been closed down. Also, efforts to improve demand for glycerine are being made by developing new applications. Solvay is now building Epichlorohydrin plant based on glycerine produced from biodiesel unit.

RECYCLING WASTE ELECTRIC MATERIAL JAPANESE EFFORTS

In Japan, the introduction in 2001 of the Home Appliance Recycling Law (HARL), which obliged manufacturers to take back television sets, washing machines, fridges and air conditioning units, has led to the creation of a nationwide recycling infrastructure.

TECHNOLOGY FOR REMEDIATION OF INDUSTRIAL WASTES TO RECOVER USEFUL PRODUCT

A technology has been patented that combines remediation of industrial wastes or contaminated soils and sequestration of carbon dioxide.The material resulting from the process can then be reused or disposed of more cheaply.

Accelerated Carbonation Technology (ACT) is available from Carbon8 Technologies, a spin-off company from Greenwich University.It is a controlled accelerated version of the naturally occurring carbonation process and used to improve the chemical and physical properties of the treated materials.When carbonation is used in the recovery and recycling of waste, an end product with value is created. The technology can utilise significant volumes of waste CO2 emissions from local sources, for the carbonation process.

MICROFLUIDICS -EMERGING TECHNOLOGY

Microfluidics-the generic technology of manipulating fluids on a chip-might be in its infancy but it is fast emerging as a revolutionising force in many industries. Enabling the development of smart products at low cost, microfluidics is opening up a vast array of opportunities.

OTHERS ARTICLES

• Anti Dumping Page
• Certification Issues
• Update on Biodiesel
• Update on nanotechnology
• Update on CDM
• Safety & Accident Page
• World has Bigger Oil Worries than Size of Reserves
• Coal to Oil Project – Indian Scenario
• World Wind Power Capacity
• Tamiflu From Chemical Synthesis
• Prospects for Thiorium based Reactors
• European Food Safety Norms Phase II Project
• China’s Natural Gas Shortage
• Process Flow-Acrylic Acid
• Ask for Chemical Facts Free
• News Round Up-International/India
• Technology Development -International/India
• Petrochemical Page
• Pharma Page -International/India
• Pesticide Page –International
• Energy Page – India
• Biotechnology Page -International/India
• Agro Chemical Page -International/India
• Focus on Herbal Products should be as Neutraceuticals Rather than Pharmaceuticals
• Environmental Page -International/India
• International Maritime Dangerous Goods Code-Part XXXX
• Directory of Chemical Industries in China-Manufacturers, Trading Houses and Promotional Organisations – Part XXXVI
• New Projects International
• Business Opportunities & Tender
• Price Details
• Chemicals Imported at Chennai Port During the Month of November 2005

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