SEBACIC ACID

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION

SECTION II PRODUCT APPLICATIONS

SECTION III INDIAN MANUFACTURERS

SECTION IV IMPORT/EXPORT LEVEL

SECTION V PRICE TRENDS

SECTION VI INDIAN DEMAND

SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS

SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY

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

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 SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATION

Appearance White, free flowing powder having a mild fatty acid odour.

Physical and chemical properties

Molecular weight 202.25

Melting point 134.5 deg.C
Boiling point at 13.3 KPa 295 deg.C
Density at 25 Deg.C 1.207 g/cm3
Solubility in water at 20 deg.Cwt % 0.1
Solubility:- Solubility in ether at 17 Deg 0.1%
Solubility in water at 100 Deg. 2%

Reaction With the exception of oxalic acid,

dicarboxylic acids (sebacic acid) are
resistant to oxidation. Dicarboxylic acids
react with dialcohols to form polyesters
and with diamines to form polyamides.
Reaction with monoalcohols yields esters.

To avoid undesired decomposition

reactions, aliphatic dicarboxylic acids
should only be distilled in vacuum.

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 SECTION II

PRODUCT APPLICATIONS

Sebacic acid

Nylon Plasticisers such as Synthetic resins such Lubricants

di octyl sebacate etc. as alkyd resin etc

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 SECTION III

INDIAN MANUFACTURERS

The Indian manufacturers of Sebacic acid include the following.

* Jayant Oil Mills,

13, Sitafalwadi, Post Box No.6209,
Dr. Mascarenhas Road,Mazgaon, Mumbai-400 010.

* Gwalior Oil Mills

37, Shilnath Camp,
Indore-452 003

* Bhavin Chemical Industries

3E/10, Majithia Nagar
II Floor, S.V. Road,
Kandivli (W), Bombay-400 067

* Perfect Pharmacists P. Ltd.

(Viscus Oils P. Ltd.)
12/8, New Palasia,
Indore-452 001

Indian installed capacity Around 7500 tonnes per annum.

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 SECTION IV

IMPORT/EXPORT LEVEL

4.1. Import level : Around 50 tonnes per annum

Individual Imports of Sebacic acid

Period 2002

Name of the Country Quantity in Value in Rs. Date Port

Importer tonnes
Tolani China 2 188,494 24.1.2002 to Mumbai
Chemicals 31.1.2002
Henkel Tereson China 0.3 46,570 16.4.2002 to Mumbai
India 19.4.2002
Subhash China 1.434 123,233 22.4.2002 to Mumbai
Chemicals Inds. 30.4.2002
Subhash China 0.066 5,672 22.4.2002 to Mumbai
Chemicals Inds. 30.4.2002
Henkel Teroson Germany 0.4 61,977 1.5.2002 to Mumbai
India 7.5.2002
M.J.Chemicals China 5 421,524 23.5.2002 to Mumbai
31.5.2002
M.J.Chemicals China 0.130 10960 25.07.2002 to Mumbai
31.07.2002
M.J.Chemicals China 4.870 410564 25.07.2002 to Mumbai
31.07.2002
Henkel Troson Germany 0.700 120146 16.08.2002 to Mumbai
India 22.08.2002
Henkel Troson Germany 0.700 118236 17.09.2002 to Mumbai
India 24.09.2002

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4.2. Export level : Around 20 tonnes per annum

Countrywise exports of Sebacic acid thr. Salts and esters

Country Quantity in Kg

USA 20120

SECTION V

PRICE TRENDS

Basic price Rs.98 per kg

Taxes and dutie Extra as applicable

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 SECTION VI

INDIAN DEMAND

The demand assessment of Sebacic acid is made for the following applications.

1. Nylon 6,10 & Nylon 11

2. Plasticizers like dioctyl sebacate, butyl, isooctyl, benzyl and methyl sebacate.

3. Synthetic resins like alkyd resin and saturated polyester resin

4. Lubricating oils and hydraulic fluid.

Nylon 6,10 & Nylon 11

Nylon 6,10:-

The polyamide nylon 6,10 obtained by reaction of sebacic acid with hexamethylene
diamine (HMDA), no longer has any industrial significance.

Nylon 11:-

Nylon 11 which is the castor oil based derivative and is not produced in the country.

Sebacate plasticizers

Sebacic acid is used in the manufacture of number of sebacates like di octyl sebacate, di
butyl sebacate, di ethyl sebacate, di isoctyl sebacate, which are used as plasticizers.

Sebacate plasticizers are primarily used because of their superior low temperature
properties compared to the phthalate plasticizers. Di octyl sebacate and di butyl
sebacate are used as part plasticizers to resist migration and to increase sulphur staining.
It is used as stabilizers, for the PVC products requiring low temperature properties.

Producers of Sebacate plasticizers (Sample of consumers of Sebacic acid)

1. Amines & Plasticizers Ltd., Bombay

2. Enbichem Industries, Bombay
3. Standard Alkali Ltd., Bombay
4. Suparna Chemicals Pvt. Ltd., Bombay
5. Subhash Chemical Industries, Pune
6. Apte Organic Chemicals P. Ltd., Maharashtra

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Indigenous demand for Sebacate plasticizers

The estimated demand for sebacic acid for sebacate plasticizers is around 3000 tonnes
per annum.

Synthetic resins

Sebacic acid is used in the manufacture of saturated polyester resin and unsaturated
polyester resin.

It is also used in the manufacture of alkyd resins.

There are a number of substitutes for sebacic acid for synthetic resin manufacture and
its use level in the synthetic resins industry is negligible.

Lubricant industry

Sebacic acid is used as additives for low temperature lubricants at high altitudes. They
are used as additive in lubricants for aircrafts engines and also as additives in hydraulic
fluids.

The use of Sebacic acid in lubricants is confined to aircrafts for use at high altitude
levels. Synthetic lubricating oils are generally used instead of Sebacic acid.

Total demand

The present Indian demand for Sebacic acid is estimated to be around 3500 tonnes per
annum.

Growth rate in Demand: 6 to 7% per annum

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 SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Sebacic acid can be commercially produced by the following three methods.

1. Alkaline cleavage of castor oil or ricinoleic acid in the either batch or continuous
process.

2. By electro oxidation of adipic acid.

3. By oxycarbonylation of butadiene

4. Oxidation of stearic acid with N2O4

Production of Sebacic acid from Castor oil

Sebacic acid is produced commercially by Union Camp in Dover, Ohio, by Kokoku Oil
Company in Japan, and by a state enterprise in the People's Republic of China.

The process used in each case is based on the caustic oxidation of Castor oil or
Ricinoleic acid in either a batch or continuous process.

The Castor oil or Ricinoleic acid and caustic are fed to a reactor (usually Monel or
Nickel) at a temperature of 180-270 deg C where the ricinoleic acid undergoes a series
of reactions with evolution of hydrogen to give disodium sebacate and capryl alcohol.
When the reaction is complete, the soaps are dissolved in water and acidified to a pH of
about 6.

At this pH, the soaps are converted to free acids that are insoluble in water. The
disodium sebacate is then partially neutralized to the half acid salt which is water
soluble. The oil and aqueous layers are separated. The aqueous layer containing the
half salt is acidulated to a pH of about 2, causing the resulting sebacic acid to
precipitate from the solution.

It is then filtered, water washed, and finally dried.

A number of process improvements have been described, and include the use of white
mineral oil having a boiling range of 300-400 deg.C or the use of a mixture of cresols.
These materials act to reduce the reaction mixture's viscosity, thus improving mixing.
Higher Sebacic acid yields are claimed by the use of catalysts such as barium salts,
cadmium salts, lead oxide, and salts.

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The process is further described below:

The alkali fusion of castor oil using sodium or potassium hydroxide in the presence of
catalysts to split the ricinoleate molecule, results in two different products depending on
reaction conditions. At lower (180-200 deg.C) reaction temperatures using one mole of
alkali, methylhexyl ketone and 10-hydroxydecanoic acid are prepared.

The 10-hydroxydecanoic acid is formed in good yield when either castor oil or methyl
ricinoleate is fused in the presence of a high boiling primary or secondary alcohol such
as 1 or 2 octanol.

An increase to two moles of alkali/mole ricinoleate and a temperature of 250-275 deg.C

produces capryl alcohol, C8H18O and sebacic acid.

Production of Sebacic acid from Adipic acid

An electro oxidation process was developed by Asahi Chemical Industry in Japan, and
was also piloted by BASF in Germany. It produces high purity Sebacic acid from Adipic
acid.

The process consists of three steps. Adipic acid is partially esterfied to the monomethyl
adipate. Electrolysis of the potassium salt of monomethyl adipate in a mixture of
methanol and water gives dimethyl sebacate. The last step is the hydrolysis of dimethyl
sebacate to Sebacic acid. Overall yields are reported to be about 85%.

Source of technology

* Indian Institute of Chemical Technology, (IICT)

Tarnaka,
Hyderabad

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Major plant and machinery and suppliers

Name of the equipment Name of the company

Neutraliser Sharplex Agro Process (I) Pvt. Ltd.,

302, Hill View Industrial Estate, LBS Marg
Ghatkopar (W), Bombay-400 086

Reactors Chemitherm Plants & Systems P. Ltd.,

30, Anandha Street
Alwarpet, Chennai-600 018

Texel Fabricators Pvt. Ltd.,

335, Sidco Industrial Estate,
Ambattur, Chennai-600 098, Tamil Nadu

Dryers ATRE Thermal Products Pvt. Ltd.,

Pushpa Heights, 1st Floor,
Bibwewadi Corner, Pune-411 037

The Anup Engineering Ltd.,

Behind 66 KV Electric Sub Station
Odhav Road, Ahmedabad-382 415

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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

Boilers Cethar Vessels Ltd.,

No.4, Dindigul High Road,
Trichy

Firetech Boilers Pvt. Ltd.

No.211, 2nd Cross,
38th Main, B.T.M. Layout
2nd Stage, Bangalore-68

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 SECTION VIII

RAW MATERIAL, UTILITY REQUIREMENTS AND AVAILABILITY

Raw material

Basis One tonne of Sebacic acid

Castor oil 1.85 tonnes

Caustic soda 0.42 tonne

Utility

Power: 1550 units

Fuel Oil: 80 litres

Source of supply of raw material

Name of the raw material Name of the company

Castor oil Amee Castor & Derivatives Ltd., Gujarat

N.K.Industries Ltd., Gujarat
Royal Castor (India) Ltd., Gujarat

Caustic soda Chemfab Alkalies Ltd., Pondicherry

DCW Ltd., Tamil Nadu
Tamil Nadu Petroproducts, Tamil Nadu

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 SECTION IX

GLOBAL SCENARIO

General details

India, Brazil and China are the major producers of castor and castor oil derivatives in the world

Total world production of castor oil and derivatives 1.2 million tonnes

Indian share in world production 0.74 million tonnes (62% of world production)

Gujarats share in world production: Around 42%

Global demand for Sebacic acid Around 2 lakh tonnes per annum

Global producers of Sebacic acid include the following

* Rongchang Castor Oil Chemicals

2, Xuanwu St.,
Development Zone, Weifang,
China

* The Mitsubishi Corporation Chemicals Group

6-3, Marunouchi,2-Chome,
Chiyoda-Ku, Tokyo - 100

* Total Specialty Chemicals Inc.,

360 Connecticut Avenue
Suite 150, Norwalk
Connecticut 06854

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 SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY , PROJECT COST AND

PROFITABILITY PROJECTIONS

Economic capacity : 300 tonnes per annum

Project cost : Rs.134 lakhs

Assessment of project cost

1. Land

S.No. Description Cost

Rs.in lakhs
1.1 Cost of land of 1acre 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 220 sq.m. at Rs.3200/sq.m. 7.04
2.2 Non-factory building of area 50 sq.m.at Rs.4500/sq.m. 2.25
Subtotal 9.29

3. Cost of Plant & Machinery

S.No. Description Cost

Rs.in lakhs
3.1 Cost of basic plant and machinery 40.00
3.2 Instrumentation and control 3.00
3.3 Pipelines and valves 4.00
3.4 Structurals for erection 2.00
Subtotal 49.00
3.5 Octroi, excise duty, sales tax, etc.at 12% 5.88
3.6 Packaging and insurance charges (2%) 0.98
3.7 Transportation charges (2%) 0.98
3.8 Machinery stores and spares (2%) 0.98
3.9 Foundation charges (2%) 0.98
3.10 Installation charges (2%) 0.98
Total cost of plant and Machinery 59.78

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4. Technical know-how fees Rs.3.5 lakhs

5. Miscellaneous fixed assets

S.No. Description Cost

Rs.in lakhs
5.1. Electrification 3.00
5.2. Steam boiler and auxillaries 3.00
5.3. Water storage tank, borewell etc. 0.80
5.4. Fuel storage tank 1.20
5.5. Laboratory equipment 0.80
5.6. Office machinery & equipment 1.50
5.7. Material handling equipment, packaging machinery, 1.50
weigh balance, etc.
5.8. Diesel generator 4.40
5.9. Effluent treatment 1.20
Total 17.40

6. Preliminary & Pre-operative expenses:

S.No. Description Cost

Rs.in lakhs
6.1. Preliminary expenses 0.40
6.2. Pre-operative expenses:-
6.2.1 Establishment 0.40
6.2.2 Rent rates and taxes 0.40
6.2.3 Travelling expenses 0.80
6.2.4 Interest and commitment charges on borrowings 6.00
6.2.5 Insurance during construction period 1.50
6.2.6 Other preoperative expenses and deposits -
6.2.7 Interest on deferred payment -
Total 9.50

7. Provision for contingency Rs. 6.76 lakhs

8. Working capital margin Rs. 21.29 lakhs

9. Total project cost Rs.134 lakhs

10. Means of Finance

Promoter's contribution Rs.54 lakhs

Term loan from financing institutions Rs.80 lakhs
Total project cost Rs.134 lakhs

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11. Financial statements

A Variable cost Rs. in lakhs

Raw material and utilities 139.88

Spares and maintenance 3.59
Selling expenses 14.7
Total variable cost (A) 158.16

B Fixed cost

Salaries and wages 15.00

Interest on term loan and working capital loan 25.92
Depreciation 7.97
Administrative expenses 8.82
Total fixed cost (B) 57.71

C. Total cost of production (A+B) 215.87

D. Selling price per kg. (in Rupees) 98.00

E. Annual sales turnover 294.00

F. Net profit before tax (E-C) 78.13

G. Breakeven point in % 42

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 SECTION XI

SWOT ANALYSIS

Strength One of the largest producers of Castor seed

in the world.

Weakness Need for greater thrust in R&D work and

product application development

Opportunity Export sector

Threat Substitution possibility

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 SECTION XII

FACTORS INFLUENCING THE POSTION FOR A NEW INDUSTRY AND

RECOMMENDATIONS

Sebacic acid is an important product particularly finding applications in the production of

Sebacate plasticiser.

Sebacate plasticiser is considered as the eco friendly product and is ideal for use in cold
climatic conditions.

Sebacic acid is an ideal castor based export oriented project opportunity.

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