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NPCS Newsletter - Issue 24

Project Profiles of below projects can be viewed/ downloaded from http://www.niir.org/profiles/

 

Synthetic Tannin Powder
For Leather Industry

 

The term tannin refers to the use of tannins in tanning animal hides into leather; hence the words  tan  and  tanning  for the treatment of leather. However, the term tannin  by extension is widely applied to any large polyphenolic compound containing sufficient hydroxyls and other suitable groups (such as carboxyls) to form strong complexes with proteins and other macromolecules.

 

Synthetic tannins are used in tanneries as replacement to compliment the tanning action made by the natural tanning extracts. They are used as auxiliaries for pre-tanning, re-tanning and combined tanning and as dispersing agents for vegetable tannins and dyestuffs.

 

Tannins are incompatible with alkalis, gelatin, heavy metals, iron, limewater, metallic salts, strong oxidizing agents and zinc sulfate, since they form complexes and precipitate in aqueous solution.

 

Bread Plant

 

Bakery products in India are now in common use and are no more exclusive to a few households or classes of performs. Even then, unlike advanced countries where breads are considered basic essentials of a household budget, in India the element of capacity to pay  continues to play a significant role . The outlay on bread, thus shares the character of  discretionary  expenditure rather than expenditure on basic is applicable. This necessity more in the case of biscuits than in the case of other bakery product. Variants of breads such as rusks have also found much acceptable among relatively poor households and workmen but other bakery products such as cakes, pastries, etc. specifically remain as the items of  class consumption .

Much attempt is being made to popularize bakery products among all because these products are considered easy, convenient and rather inexpensive means of taking food in hygienically prepared ready to eat form. A particular role in this direction is being played by use of both bread and biscuits as means of nutrition supplementation for large number of children, and locating and nursing mothers who are covered by various feeding programs run by number of social welfare agencies operating both at the state and the central level. It is hoped that with further modernization, with influence of urban consumption pattern, spread of industry and commerce and general change in eating habits shall gradually improve the share of rural consumption in the total market for bakery products.

 

 

Shoe Polish
In Aerosol Filling

Aerosol-type polishes have been extensively used for polishing shoes, automobiles, household care, etc. Conventionally, an aerosol is prepared by injecting a stock solution and a liquefied propellant gas, which serves to spray the stock solution with a suitable pressure, into a container under a predetermined pressure.

Stock solution is generally prepared by dissolving an effective component in a solvent such as petroleum fraction, alcohol, water and synthetic solvent. The content of such stock solution in an aerosol-type polish composition is normally 55 to 70 % by volume based on the total polish composition.

 

Oxygen Plant

Gases are liquefied by significantly lowering their temperature: from -183°C for oxygen to -269°C for helium. It saves a substantial amount of volume. Gases are generally liquefied during the production phase and directly stored onsite into large cryogenic tanks. They are then dispatched to the customers’ site inside perfectly insulated cryogenic transport tanks.

Oxygen purity is vital to efficient production. For example, 99.5 percent pure oxygen can produce high-quality, flame-cut edges. Cylinder oxygen is produced from vaporized liquid oxygen. Its minimum guaranteed purity is 99.5 percent. Liquid oxygen is classified as Type II by the Compressed Gas Association (CGA).

The industrial gas industry is divided into two major segments. The first, called the  tonnage  or  supply scheme  market, is composed of large-volume users who usually receive gas via a direct pipeline from an on-site production facility. Under typical on-site contracts, a gas supplier constructs a production plant at or adjacent to a gas user's facility. The gas supplier owns and operates the plant for the benefit of the gas customer. Within this market segment, gas sold is measured in terms of tons per day. Examples of customers who routinely purchase industrial gases on the tonnage market include chemical, petroleum, electronics, and steel manufacturers.

The other major market segment is known as the  merchant  or  bulk liquid  market. Customers within this market generally have fluctuating demand rates or operate multiple facilities in scattered locations. They often purchase gas products under short-term contracts of less than five years in duration. Gases are shipped and stored in liquid form because of volume constraints. For example, liquid oxygen takes up less than 1 percent of the space required to contain the same amount in a gaseous state. Examples of customers in this category include the metal, food processing, electronics, chemical, aerospace, plastics, medical, glass, and paper industries.

The global market size of cryogenic equipment is estimated to be $11 billion in 2011. Cryogenic tank has the largest market and majority of cryogenic equipment market revenue come from those tanks.

 

Rice Flakes from Broken Rice
(Used in Beer Industry)

 

Rice flakes from broken rice used in beer industries, which is cheap convenient and is an innovated concept. The product is used in beer industry which finds a prominent place in alcoholic beverages. It has an excellent domestic demand. In India about 32 beer units are registered with DGTD with a total installed capacity of the order of 132,200 Kilo Litres per year. The capacity utilization during the last few years has been around 156 percent. So, it has to be assessed that in the coming years the new unit may come up to production considering the 60% of the total licenses. Similarly demand is increasing day by day to meet the requirement of indigenous as well as export market.

Formulations of beer manufacturing are done with the view of availability of the raw materials in that particular part of the World where the brewery is proposed to be established. In most of the parts of the world, barley is universal source of beer extraction. But, beers are manufactured from Chamomile flowers and powdered gingers etc. as well. The manufacturing processes and quality control measure can make the beer nutritious, energy packed and refreshing. Among all the alcoholic drinks beer has become so common.

The Indian beer industry seems to be in upswing mode as 2006 seems to be the best year as far as the growth is considered. Last year there was a growth of 20% while in the last five years the industry registered a growth of 7 to 8% year on year basis.

Industry analysts say tax and levies on beer are anticipated to fall over the next 2 to 3 years, driving down retail prices by25 to 50%. The per capita consumption of beer in India is very low as compared to other countries in Europe and America. At present the per capita consumption is 0.7 litre per annum, but industry experts predict that this may rise to around 20 litres in the next 10 years. Considering the expected increase in consumption and the current growth trends, the future of Indian beer market looks bright and seems set for continuous double digit growth in the coming years.

 

The demand and consumption pattern is entirely related to the scope of beer industry in India. The market for flaked rice will predominantly consist of buyers from group especially of urban and semi-urban areas. Even the people of low-income group can also buy as the products are directly consumed along with jaggery and from coconut pieces by rural folk.

Particle Board from Rice Husk

 

The large producers account for 15% of the total production, producing some 38 mn sq. m of plywood and blockboards. The ecological considerations had, however, placed theindustry in jeopardy owing primarily to the restraints put on the use of timber. Alternate materials from agricultural wastes like stalks of cotton and wheat, rice husk and bagasse are slowly getting into the industry as raw material feeds.
          Kitply Industries, Sarda Plywood, Century Plywood, Novapan, National Plywood, Green-ply and Jayshree Tea remain the main players in the organized sector of plywoods and particle boards, which has some 60 units. There are several SSI units and other informal sector units contributing around 60% of the total production.

The Indian market for particle board and plywood is estimated in value terms, at over Rs 37 bn. Of the total market, particle board including medium density fiber board (MDF board) accounts for nearly a quarter of the market. Nearly 85% of the particle board is supplied by the organized sector. Western India has emerged as the leader in the particle board segment.      

          Shirdi Industries (SIL) was setting up a plant for the manufacture of MDF and particle board. The project, which will be India's first and only integrated plant providing complete interior solutions, was being set up at Uttarakhand. It was mainly because of the state government granting the company a status, entitling the company to excise duty, income tax and sales tax exemption besides investment subsidy. The company is also producing pre-laminated board, decorative laminates, floorings, panel door and furniture components from the facility. 

 

E–WASTE RECYCLING PLANT

 

WEEE has been identified as one of the fastest growing sources of waste in the India, and is estimated to be increasing by 16-28 per cent every five years. Within each sector a complex set of heterogeneous secondary wastes is created. Although treatment requirements are complicated, the sources from any one sector possess many common characteristics. However, there exist huge variations in the nature of electronic wastes between sectors, and treatment regimes appropriate for one cannot be readily transferred to another.

The first comprehensive study to estimate the annual generation of e-waste in India and answer the questions above is being undertaken up by the National WEEE Taskforce. So far the preliminary estimates suggest that total WEEE generation in India is approximately 1, 46,000 tons per year. The top states in order of highest contribution to WEEE include Maharashtra, Andhra Pradesh, Tamil Nadu, Uttar Pradesh, West Bengal, Delhi, Karnataka, Gujarat, Madhya Pradesh and Punjab. The city wise ranking of largest WEEE generators is Mumbai, Delhi, Bangalore, Chennai, Kolkata, Ahmadabad, Hyderabad, Pune, Surat and Nagpur.

Almost 50% of the PC's sold in India are products from the secondary market and are re-assembled on old components. The remaining market share is covered by multinational manufacturers (30%) and Indian brands (22%).

Packaged Drinking Water

Bottled water industry, colloquially called, the mineral water industry, is a symbol of a new lifestyle and health-consciousness emerging in India. While a large segment of the population is struggling to get access to potable water supply, a new generation - especially in the urban areas - is getting accustomed to bottled water paying handsome prices.

The total size of the bottled water market in India is estimated at Rs 20 bn. What is amazing is that people are prepared to pay Rs 10 or more for a litre of 'simple' water - especially when the cost of material input is negligible. The cost of packaging can be as high as 15% to 35% of the price of the product. In bottled water market, the cost of entry and the cost of exit is low. One does not require much equipment to make bottled water.

The bottled water market is growing at a rapid rate of around 20% a year (down from 50 to 60%). At this growth rate, the market is estimated to overtake the soft drinks market soon. Multi-nationals Coca-Cola, Pepsi, Nestle and others are trying to grab a significant share of the market. There are more than 1800 brands in the unorganized sector. The small players account for nearly 19% of the total market.

Nevertheless, per capita consumption of bottled water in India is less than half a litre per year, compared to 111 litres in France and 45 litres in the US. The consumption of smaller packs (500 ml) has increased perceptibly by around 140%. Even school children are carrying the 500-ml packs in their school-bags. The 20 litre jars have found phenomenal acceptance in households and in work places.

The growth trends in packaged drinking water and a growing demand is indicative of the fact that water and its variants will be the single largest beverage category, growing and becoming at least 20 times of the current market size within the next 10-12 years.

The BIS certification was made mandatory for the segment from April 2001. The bottled water was classified as  food  and has been brought under the Prevention of Food Adulteration Act. The producers have to adhere to rules pertaining to colour, odour, taste, turbidity, total dissolved solids and aerobic microbial count.

Mini Sugar Plant

India is now the largest consumer of sugar in the world and was expected to overtake Brazil in production. Although subject to cyclical fluctuations, sometimes violent ones, sugar production has grown phenomenally during the last decade. The drop in production and increased consumption put pressure on sugar prices.

According to Indian Sugar Mills Association (ISMA) production in 2008-09 was estimated at 14.7 mn ton against previous year production of 26.3 mn ton. The government permitted its trading agencies like MMTC and others, such as STC, NAFED and PFC to import sugar to control prices.

According to industry estimates, import contracts for close to 2 mn ton sugar have already been signed by various companies and another 500,000 ton are likely to be contracted by the end of the season, while over 1.85 mn ton of sugar has arrived. Most of these imports are sourced from Brazil. In India prices have moved up by nearly 50% in the season. The annual variations in sugar production are a result of alternate sweeteners Jaggery and Khandsari claiming more of sugarcane in times of fall in crop. With passage of time, sugar industry has been liberated from 100% procurement of sugar by government; the existing level of procurement is only 10% of the production. This has to a large measure, provided a level playing field between sugar and alternate sweeteners.

The Indian Sugar Mills Association had been in favor of futures trading in sugar to provide a cushion to the industry once decontrolled. The National Federation of Cooperative Sugar Mills, the apex organization of 250 cooperative sugar mills accounting for nearly 60% of country's sugar production, did not support it.

The government, however, removed all restrictions on sugar exports and permitted commencement of future trading in white sugar. Futures contracts are traded in four exchanges, the three National Multi Commodity Exchanges (NMCEs), the National Commodities and Derivatives Exchange (NCDEX), and the Multi Commodity Exchange (MCX), besides E-Sugar Ltd.

 

Neutralization of Phospho-Gypsum

 

Phospho-gypsum is a by-product of the phosphoric acid industry and consists of 65-70 % gypsum, 25-30 % water and 5-10 % impurities, i.e. phosphoric acid and its salts, hydrofluoric acid and its compounds, R₂O₃ (Al₂O₃+ Fe₂O₃), quartz, apatite, alkali, organic matter, and others. The P₂O₅ and F impurities are found in three different formsin Phospho-gypsum compound: on the surface of gypsum crystals as water soluble compounds (H₃PO₄, Ca(H₂PO₄)₂·H₂O, H₂SiF₆), substituted in the lattice of gypsum crystals (effectively solid solutions of CaHPO₄·2H₂O, SrSO₄ or Na₂SiF₆) and as insoluble compounds, i.e. apatite and quartz. These impurities, particularly hydrofluoric acid and its salts, contaminate an environment.

Soluble phosphates {H₃PO₄ and Ca(H₂PO₄)₂·H₂O} and soluble fluorides had maximum influence on the fall of compressive strength of plaster. CaHPO₄·2H₂O had small influence, but with the present of Ca(OH)₂ it had great influence on the plaster properties. The most impurities in Phospho-gypsum can be found in the particle size fractions above 160 and below 25 µm. There are more than few plants (those of  Onoda  in Japan,  Giulinichemic GmbH ,  Knauf  in Germany, etc.) where the impurities are eliminated by washing Phospho-gypsum with water or separating off coarse and very fine particles. Up to 4 m³ of water is necessary for 1 ton of Phospho-gypsum. The Phospho-gypsum mixtures are also eliminated by usinga combined method when Phospho-gypsum is washed with a smaller amount of water, and the rest of the acid mixtures are neutralized by adding the following additives: Ca(OH)₂, CaCO₃, K₂CO₃, KOH, Portland cement, NH₄OH, etc.

The acid impurities are not fully eliminated from the Phospho-gypsum crystals. The insoluble phosphates {Ca₃(PO₄)₂, Ca₅(PO₄)₃OH} and fluorides (CaF₂ andCaSiF₆) did not influence the plaster properties. The objective of the work is to investigate the neutralization process of the acid impurities of dehydrate Phospho-gypsum into lime suspension.

 

 

Banana Products
(Banana Powder, Banana Puree and Banana Concentrate)

 

Banana is an important fruit crop of many tropical and subtropical regions of India. It is cultivated in India in an area of 830.5 thousand hectare and total production is around 29,779.91 thousand tons. Main banana growing states are Tamil Nadu, Maharashtra, Gujarat, Andhra Pradesh and Karnataka.

The global production of banana is around 102028.17 thousand tons of which India contributes 29.19%. Besides India, other major banana producing countries are China, Philippines, Ecuador, Brazil and Indonesia.

Banana Puree or Banana Pulp is processed from a selected variety of banana grown in the sub-tropical region of South India. The Cavendish banana puree (banana pulp) obtained from Indian bananas is considered best in quality owing to the superior size, flavor, taste and thickness of the Indian bananas. Banana Puree is widely mixed into daily food, juices, nectars, drinks, jams, bakery fillings, and fruit meals for children. Banana puree or banana pulp is used as flavor for baby foods, ice creams, yoghurts. Banana yoghurt makes a healthy snack and banana ice cream, milk shakes and delicious desserts are favorites among children.

The demand of Banana Products in market is increasing rapidly due to nutritive and medicinal characteristics of it. India is one of the major country producing banana and its derivatives. Banana Derivatives includes: Puree, Ice-Creams, Fruit breads, cakes, tarts, muffins, pie-fillings, icings, donuts, fruit bars, milk shakes, yogurts, puddings, toppings, deserts, baby food, etc.

 

Integrated Unit
Textile Mill and Readymade Garments

 

The textile industry occupies a leading position in the hierarchy of the Indian manufacturing industry. It was estimated to contribute 14% to industrial output, 4% to GDP and about 11% to India's export earnings. Besides, it provides direct employment to over 35 mn people and is the second biggest employer. Its direct linkages with the rural economy, being dependent on fibre crops, is also closely linked with diverse crafts, such as those using cotton, wood and silk and handlooms employing millions of farmers and craftsmen in rural and semi-urban areas.

In the global context, the industry accounts for 61% of loomage, 22% of spindle age, 12% of the production of textile fibres and yarn, and 25% share in the total world trade of cotton yarn. The industry is made up of small-scale, non-integrated spinning, weaving, finishing and apparel-making units as well integrated composite mills. Of the nearly 2700 units engaged in spinning yarns, 1135 are small scale. The weaving units numbering 4.8 mn have only 10,000 units in the organized sector, while the rest are engaged in handlooms (3.9 mn) and power looms (1.8 mn). Of the 3,300 processing units, nearly 2,100 are independent small units, while the fabricators of garments number 77,000 small scale units.

The cumulative production of cotton fabrics from all sectors has increased from 19.8 bn sq mt in 2001-02 to over 28.5 bn sq mt. in 2007-08. This point to a healthy 6.4% annual growth during the period. In the three year period, coinciding with removal of quotas and the liberalisation of export trade, the increase has been more marked at close to 11.5% per annum.

Compared with the industry in other countries the Indian textile industry is endowed with some inherent advantages, such as abundance of raw material and cheap labour. As a result, India is the second largest cotton trader after the USA, having the largest area (9 mn hectare) under it.

The government has set a target to attract more than USD 8 bn (Rs 400 bn) foreign direct investment (FDI) in textiles and garments sector over the next 5 year period. It has targeted Europe, the US, and China as potential investors. It will attract leading equity funds and foreign banks to invest in the domestic textile sector. It will also attract foreign designer houses and garment manufacturers, under its plan.  For setting up textile units through public-private partnership, a scheme for Integrated Textile Park (SITP) has been launched to provide world class infrastructure facilities. Besides this, 50 textile parks are being established to enhance manufacturing capacity and increase the industry's cost competitiveness. 

The Government of Bihar has announced its plans to establish two textile parks in the state. The first one, Vikramshila Textile Park, is being set at a cost of Rs 1.2 bn and the second one, Angh Pradesh Handloom Park, at a cost of Rs 250 mn. The two together are expected to attract investments of over Rs 6 bn.

The readymade garment industry in India owes its genesis to the emergence of a highly profitable market for exports. The cue was enough for Indian enterprises to foray into the domestic market for readymade garments. The export surpluses and rejects fuelled the emergence of a domestic market. This steadily led to the entry of foreign brands, either through their direct entry or through joint ventures. This was facilitated by the changes in the lifestyles of the modern Indian consumers. 

With the rising tailoring costs and relatively low prices of standardised products, the Indian consumer increasingly took to ready-mades. In the past, the readymade market remained confined mainly to baby dresses and small manila-shirts and dress shirts. Now it has extended to trousers, suits, lady dresses and, of course, fashion garments for men and women. Franchised boutiques have been established as tools for brand and image building.

The Indian clothing market for readymade garments is estimated at over Rs 1000 bn with men's wear segment accounting for 46%, while the shares of women's and kids' clothing are pegged at 36% and 17%, respectively. The Indian branded garment market, which is estimated at over Rs 200 bn, accounts for over 26% of readymade market. Following the entry of several new brands, the branded segment has grown at 25% annually. This represents a shift from unbranded to the branded segment.

Cattle Feed

 

Cattle feed is a peculiar product consumed mainly by cattle owners of rural area. Animal industrial enterprises in all area and so, the market for cattle feed is very scattered. The consumers are living by and large in poverty and so they have hardly enough finances to spare for cattle feed. Yet cattles are the only source of earring in many cases and to increase their own earning they try to spend upon cattles as much as possible.

Unawareness about the product and its importance should also be looked after. The benefits of this scientifically prepared cattle feed over traditional feed has become as popular as they should be. The problem is much of replacing unscientific feeding system with scientific feed.

 

Estimation of Demand on the Basis of Various Macro Factors: -

Broadly there are five factors affecting demand.

1) Population of cattle and its composition.

2) Financial Position of Farmers.

3) Awareness of Farmer to the production.

4) Quality of available cattle feed.

5) Government policy and the program of cattle development.

India has the largest cattle, buffalo and goat population according to latest census. There are about 200 million cattle, 50 million buffaloes and 90 million goats in the country. About one sixth of the cattle, about half of buffalo and one fifth of goat population in world are in India. Animal husbandry plays an important role in the national life and accounts for about 10% of the national income. In particular the contributor of the cattle and buffalo to the economy is considerable. They are the main source of drought power in agricultural operations and rural transportation they provide essential, foods like milk and meal.

 

Power Transformer

 

          Electric equipment industry contributes over 2% of GDP which is projected to increase to about 12% in 2015 according to a study by Frost & Sullivan. During the period, consumption of electrical equipment is estimated to increase from over USD 28 bn now to USD 363 bn, growing at a CAGR of about 30%. It is also expected that during 2010-2015, the Indian equipment manufacturing will grow at 5.5 times the growth rate of global electronic equipment production.

          The electrical industry has been showing signs of recovery after poor performance in the recent years. The domestic electrical industry, which includes equipment for generation, transmission, distribution and use of power in industrial units, constitutes a major part of the electrical products.

          India's capacity to manufacture power equipment is set to increase four-fold to around 43,000 MW over the next 5 years, through investments of over Rs 300 bn. The additional capacity of 33,000 MW is expected to be added by 2015. 

          With some fast moves at launching fast track projects to augment supplies, the Indian industry needs to improve its competitiveness. The Indian market is growing and multinationals with newer technologies are now more active. The industry, as a consequence, needs strategic alliances and tie-ups with technology suppliers to upgrade their supplies. The technology for the manufacture of transformers, for instance, is largely European. As a result, most players have the same level of technology. Even prices do not differ substantially. Lately, encouraging sign are emerging.

The entry of private sector in the power area and the emergence of captive power plants have changed the scenario for the transformer segment. Earlier, the business revolved around power utilities such as the State Electricity Boards. As against this, the customers in the private sector prefer contracting out the entire substation to a single vendor, in the process thus reducing costs as well as avoiding problems of logistics.

          As more and more MNCs and specialized industries make India their business destination, special economic zones have been allocated and feeding mega projects of robust and efficient transformers, ensuring the optional generation of power.

          Transformers & Rectifiers India Ltd (TRIL) is a leading player in this industry. Recently TRIL signed a billion rupee MoU with the Government of Gujarat to set up a new plant at Moraiya with an installed capacity of 16,000 MVA. It will make TRIL the third largest transformer manufacturing company of India.

          Siemens is now setting up a state-of-the-art Greenfield world class facility for manufacturing industrial turbines at Vadodara, Gujarat. Siemens will be manufacturing industrial steam turbines of up to 45 MW capacities, completely with its components at the Vadodara unit. It will also manufacture key components for steam turbines of up to 150 MW capacities. The company is investing Rs 30 mn in its new facility. It has grown to a complex of 14 manufacturing units during its 50 years in India.

          Of the world's total installed capacity in power generation, 20% is based on the Siemens’ technology. In India, Siemens accounts for about 35% of the generation capacity. Even BHEL manufactures Siemens’ larger turbines under license agreement in India. It also upgraded the traction converter unit at Nasik and a 245 KV circuit breaker unit at Aurangabad.

          Wartsila India in talks with the Rural Electrification Corporation (REC) for setting up power generation plants. It plans to run the plants on bio-fuels such as Jatropha and palm oil. It will set up small generation plants of 2 to 3 MW at an investment of around Rs 100 mn to Rs 120 mn respectively. The company claims that the engines supplied by it can use raw bio-fuel without the need for esterification process (a chemical reaction in which two chemicals form an ester as the reaction product by which the oil pressed from Jatropha can be used to produce bio-fuel).

          Four major players in electrical equipment segment recorded high growth of turnover over the previous accounting years: ABB (44%), BHEL (29%), BHEL Power Solutions (144%), Havel’s India (55%), and Kirloskar Electric (43%) Crompton Greaves (32%) and Suzlon Energy (42%). The growth of bottom lines was equally impressive ranging from 12 to 55%.

 

Aluminium Alloy from Scrap and Virgin Metal

 

          India's share in world aluminium market is estimated at around 3%. India ranks fifth in bauxite production after Australia (62 mn tons), Guinea (17.50 mn tons), Brazil (16.20 mn tons) and China (10.75 mn tons). With a total output of 9.25 mn tones, the country contributes about 6% of the world's total production of 159 mn tones, India holds the fifth position in reserves base and is ahead of China with 2300 mn tones. India ranked seventh in alumina production with a total output of 3 mn tones, a share of nearly 5% of the global production of 61 mn tones.

          The per capita consumption of aluminium in India continues to remain abysmally low at under 1 kg as against nearly 25 to 30 kg in the US and Europe, 15 kg in Japan, 10 kg in Taiwan and 3 kg in China.

          Aluminium has a wide range of applications, from aircraft building to packaging, a major consumer being the electrical industry. The two sectors, electricity and transportation, account for more than half of the total off take.

          The key consumer industries in India are power, transportation, consumer durables, packaging and construction. Of this, power is the biggest consumer (about 44% of total) followed by infrastructure (17%) and transportation (about 10% to 12%). However, internationally, the pattern of consumption is in favor of transportation, primarily due to large-scale aluminium consumption by the aviation industry. White goods account for nearly 5% of aluminium consumption in the country. The products include electric fans, air conditioners, refrigerators and coolers. The white goods industry uses both extruded products and flats.

          In the transportation sector, aluminium is used for paneling, floors and windows. So far, it is not used for structural parts and bodies of automobiles. An Indian car uses only about 54 kg of aluminium against a global average of 100 to 110 kg. This sets the high potential for growth with the increase in the automobile sector.

          Demand for aluminium is estimated to grow at 4 to 6% per annum. The demand for the metal is expected to pick up as the scenario improves for user industries like power, infrastructure and transportation, which are all on the move.  

In the domestic market, the demand of aluminium is expected to touch 1.5 mn ton by 2015-16. Domestic demand for aluminium foils in 1999-00 was of the order of 41,000 ton. It had gone up to 62,000 tons by 2003-04 and to 76,700 tons in 2006-07. It is projected to reach the level of 100,000 ton by the end of the decade. Foil users, such as the pharmaceuticals, processed foods and telecommunication sectors, have been showing healthy growth. Aluminium foil industry is growing annually at around 7%. In the near future, with the phenomenal rise in disposable incomes, the foil industry is expected to receive a boost. Working couples, for instance, increasingly pack their food in aluminium foils. The growth in demand is expected to follow the increasing demand noticed in China.

 

 

PVC Flex Banner (Frontlit, Backlit & Vinyl)

 

This market is booming with 25-30% annual growth and is worth around Rs 500-600 crores. The Signage Industry is witnessing robust growth in India with strong and steady economic growth. More and more MNC’s are coming to India, branding has become an important aspect in every segment. Signage, LED & Showroom Display plays a very important role in each and every business.

Indian industries will surely take the market by storm. Being based in India, they’ll provide the best after sales support and assistance to their clients. This will consequently affect the Korean and Chinese markets in India, as our products would have an added advantage of local presence.

In India advertising industry is worth more than 3.5 billion US dollars annually with a growth rate of approximately 20% per annum. With healthy growth, the market for fabrics used in signs and outdoor advertising would appear to be attractive to India's industry, but few local companies are manufacturing the textiles and Chinese imports dominate, Out-of-house (OOH) publicity has become an important component of almost every company's marketing strategy. Even sectors that were once shy of spending on advertising campaigns - such as banks, hospitals, education institutes, oil companies, cement manufacturers and real estate developers - are now among the largest spenders on OOH publicity in India.

Dynamic Sector of the Economy

The printing industry in India has assumed growing significance during the last decade, as one of the biggest and fastest growing sectors in India. The growth has always been in double digits and significantly, more than the GDP growth rate.

A booming Indian economy, literate population on the rise, together with continuous demand for printing and packaging requirements of rapidly progressing trade and industry in the country, make not only the current situation satisfactory but also, the future projections for the industry exciting.

The Indian Printing Industry is well established and presently growing at 12% per annum. According to NPES/ PRIMIR report, India is the world’s fastest growing market with a projected 73% rate of growth from 2006-11. Not only is India growing extremely fast but also it is doing so from a very large base.

 

Ferro Alloys

 

The demand for ferro alloys has been increasing with that of alloy and special steels. At the beginning of the previous decade, it was about half-a-million tonnes, increased to over 700,000 tonnes by 1997-98 and reached the level of 1.20 mn tonnes in 2006-07. There are six leading players and over 30 small producers. The industry has tied up with companies in Europe for technology inputs.

The major users of alloy steel are: auto industry, railways, forgings, tubes, springs and other engineering industries.

The leading players are Alloy Steel (SAIL), Mukand (Advanced Design Materials Corp., USA), Mahindra Ugine, Sunflag Irons & Steel, Vishveshvarya Steel, Kalyani Steel, Panchmahal, Indian Seamless, Shah Alloy Kalyani Carpenter, Garg Furnace.

Ferro manganese are alloys composed of iron and one or two more metals like Mn, Si, Ti, W etc. The ferro alloys have usually lower melting points than their respective alloying metals in pure stable form and thus, can be readily incorporated to obtain the metals as ferro alloys than in their pure terms starting from their ores. Ferro manganese is a principle alloying agent used in steel production steel/iron casting etc, where it also acts as a strengthener and deoxidizer. It imparts corrosion resistance to the products.

Ferro manganese along with Fe-Si, Fe-Cr, is a bulk ferro-alloy, Manganese is also added in steels in the form of silico manganese. It dissolves in iron in all proportions, Iron for Farm implements uses up to 1.75% Mn and also in automobile parts. Ship construction industry uses steels with even higher content; riffle barrels and heat treated forgings necessarily use ferro manganese as an alloying additive.

 

 

Pharmaceutical Unit
(Automatic Plant of Tablet and Capsule)

 

The Indian pharmaceutical industry is the fourth largest in the world in terms of volume of output and thirteenth in domestic demand. However, the Indian industry, valued at USD 17 bn in represented just over 1% of the global pharmaceutical industry in value terms. The domestic market is estimated at Rs 680 bn.

According to a study by McKinsey, Vision 2010, the domestic pharmaceutical industry could attain a size of USD 25 bn (Rs 1200 bn) by 2010 by focusing on two areas: first, innovation-led research, development and new drug discoveries; and second, information technology-led remote sales and marketing. Incidentally, according to another report by Associated Chamber of Commerce (ASSOCHAM) in India, the market is estimated to grow to more modest level of USD 9.5 bn in 2010).

India has the world's third largest active pharmaceutical ingredients (API) for the industry valued at a little less than USD 2 bn. Top 5 API producers account for approximately 6.5 %. The leading APIs are anti-infective, gastrointestinal, cardiovascular and respiratory drugs.

However, India's pharmaceutical industry might witness some decline in the number of smaller companies that either leave the market or are acquired by larger Indian or foreign companies. Since 2000, a number of smaller Indian pharmaceutical companies have, in fact, been acquired by larger companies. These cases include, among the more notable ones, Wockhardt's acquisition of Merind and Tata Pharma; Ranbaxy's purchase of Crosland; Nicholas Piramal's acquisition of Roche etc.

The Indian firms produce nearly 60,000 generic brands in 60 therapeutic categories and between 350 and 400 bulk drugs. India's drug market consists mainly of second and third generation drugs no longer subject to patent protection in the developed world. Although India is the world's leading producer of generic drugs, its annual per capita consumption of pharmaceuticals has been among the lowest placed approximately at USD 4.50 per person as compared to USD 820 in the United States and USD 13 in China.

The bulk drugs segment continues to be the highest revenue generating segment for the Indian pharma industry. It accounts for production worth Rs 120 bn and contributes about 36% of the total pharma exports. India produces 400 bulk drugs through its 1,300 licensed bulk drug units that cater to most of the domestic bulk drug requirements.

The key categories driving growth are the traditionally largest segment - anti-infective and gastro-intestinal, drugs, which expanded by 22% and 19% respectively. Fast sales growth is also visible in categories like respiratory (18%), cardiac (14%), neurology (20%) and anti-diabetic (19%). Anti-TB is the only category that has seen a decline in value and volume terms.

The number of product launches exceeds 2,000 annually. Both MNC and Indian companies are implementing strategies which will help them to benefit from and cope with the developing patent regime. Global pharma companies are increasingly exploring low cost option to outsource research and manufacturing, because of emerging slow-down in patented drug sales and high cost of R&D.

Indian pharmaceutical companies are in various stages of new drug discoveries. They have been scouting for global partners to help them in their goal. However, companies like Dr Reddy's Laboratories, Wockhardt’s, Glen mark Pharmaceuticals, Ranbaxy Laboratories, Orchid Chemicals and Lupin need financial and technical support from foreign pharmaceutical players to take their new drugs to the global market. Dr. Reddy's Laboratory (DRL) recently announced the beginning of Phase III clinical trials of its anti-diabetic drug Balagliatzone. Co-developed with Danish firm Rheoscience, the successful completion of the trial could give India its first intellectual property from the pharma sector.

India has the highest number of (US Food and Drug Administration) USFDA approved manufacturing facilities outside the US and this puts India in good position to export to regulated markets.

 

 

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