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EPOXY RESINS

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION

SECTION II PRODUCT APPLICATIONS

SECTION III INDIAN MANUFACTURERS

SECTION IV IMPORT/EXPORT LEVEL

SECTION V PRICE DETAILS

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

1
SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATIONS

Epoxy resins are characterized by epoxy equivalent (EEVV)/epoxy value, hydrolysable


chlorine content, total chlorine content, viscosity/softening point, volatile content, colour,
clarity, hydroxylvalue, ionic iron, sodium and chlorine contents.

IS Specification of Epoxy resin

IS : 9197-1979

This shall be liquid epoxy resin containing no hardeners. It shall be of the following two
grades:

a) Grade 1 - Resins containing no diluents. These shall conform to the requirements


laid in Table 1.

b) Grade 2 - Resins modified with a reactive diluent. These shall conform to the
requirements laid down in Table 2. Each class of Grade 2 resin can be made with Grade 1
resin.

Requirements for Grade 1 Epoxy resin

Class Epoxy content Viscosity Specific Hydrolysable


27 Deg C Pa.s. gravity 27 chlorine
Deg C content, %,
max.
Equivalent/ Weight per
1000 g epoxy
Equivalent
I 5.0 to 5.88 200 to 170 3 to 20 1.05 min 0.6
1.20 max

2
Requirements for Grade 2 Epoxy resin

Class Epoxy content Viscosity Specific Hydrolysable


Equivalent/ 1000 g, min 27 Deg C Pa.s. gravity 27 chlorine
Deg C content, %,
max.
I 5 0.5 to 0.9 1.05 Min. 0.6
1.20 Max.
II 5 0.9 to 4 1.05 Min. 1.20 0.6
Max.
III 5 4 to 10 1.05 Min. 1.20 0.6
Max.

3
SECTION II

PRODUCT APPLICATIONS

Epoxy resin finds application in number of sectors such as the following.

* Protective Coatings.
* Structural Composites
* Electrical Laminates
* Casting and Encapsulation
* Adhesives

* As adhesive for aircraft honeycomb structures, for paint brush bristles, concrete topping
compounds.

* As body solders and caulking compounds for the repair of plastic and metal
boats,automobiles etc.

* As casting compounds for the fabrication of short run and prototype moulds, stamping
dies, patterns and tooling.

* As caulking and sealant compounds in building and highway construction applications


and in applications where high orders of chemical resistance are required.

* As potting and encapsulation compounds and impregnating resins and varnishes for
electric and electronic equipment.

* As laminating resins for airframe and missile applications, for filament wound
structures and for tooling fixture.

Epoxy based solution coatings are used in maintenance and product finishes, marine
finishes, masonry finishes, structure steel coatings and tank coatings, aircraft finishes,
appliance primers, automotive primers, car and drum linings, furniture finishes and
collapsible tube coatings. They are used for concrete floor paints, gym and floor
varnishes, spar varnishes etc.

Epoxy Resins are also used in decorative floor applications, as chemically resistant
mortars and floor topping compound; in printing inks, in fabric treating applications in
dental, surgical and prosthetic applications for breaking petroleum emulsions and for
light weight chemically resistant foams.

The epoxy resins are used as additives for a variety of other plastic materials, such as
vinyl and acrylic resins and natural and synthetic rubbers.

4
SECTION III

INDIAN MANUFACTURERS

The manufacturers of epoxy resin, other than the paint units, who have captive facilities
include the following

* Atul Limited
Corporate Office :
P.O. Atul 396 020, Dist. Valsad

Factory : 297, GIDC Industrial Estate,


Ankleshwar-393 002

* Bluebell Polymers Pvt. Ltd.


Regd. Office & Postal Address:
79, G.V.M.S. Audyogic Vasahat Ltd.,
Odhav, Ahmedabad-382 415

Factory : Block No.131, Bileshwarpura,


Taluka Kalol, Dist. Mehsana-382 729

* Cibatul Limited
P.O. Atul 396 020,Dist. Valsad, Gujarat

* Coromandel Prodorite Pvt. Ltd.,


Factory :
Post Bag No.7, 24, Thattankulam Road,
Madhavaram,Madras-600 060.

* Dr. Beck & Co (I) Ltd.,


Beck House,Damle, Patoff
Off. Law College Road,Pune-411 004

Factory : Pimpri, Maharashtra and Ankleshwar, Gujarat

* Himalaya Resins & Paints Private Limited


Regd. Office & Factory:
Baroda Godhra Highway, At: Alindra
Post Box No.19, Kalol (PMS)-389 330, Gujarat.

* Indo N M Resin Systems Pvt. Ltd.,


15A, Bhale Estate, Mumbai-Pune Road,
Wakadewadi, Pune-411 003.

Factory : GATE No. 943/1A/1/2,


Sanaswadi, Taluka-Shirur Dist.,Pune.
5
* Kromatik & Insulants (P) Ltd.,
C-4 Indl. Estate, Mogappair West, Chennai 600 058.

* Noble Synthetics Limited


Factory : D-43(5) T.T.C., MIDC Indl. Area
Navi Mumbai-500 706

* Petro Araldite Pvt. Ltd.,


Manali Express Highway,
Manali, Madras-600 068.

* Parikh Resins & Polymers Ltd.,


54/38 Naya Ganj,
Kanpur-208 001

* Resinova Chemie Ltd.


54/38, Nayaganj, Kanpur-208 001

* Resins and Plastics Limited


Plot No. A/8, Marol Industrial Estate Of MIDC,
Cross Road B, Street No.5,
Andheri (E), Mumbai 400 093

Plot Number 3-A,


Taloja Indl. Estate of MIDC
Taloja A.V.-410 208

* Ruia Chemical Pvt. Ltd.,


Regd. Office : 105/2B, Ultadanga Main Road
Calcutta-700 067

* Spectrum Alkyd & Resins Limited


Factory Add: G-42, MIDC, Industrial Area,
Waluj-431 133, Dist. Aurangabad

Regd Office: 73, Persepolis, 100,


Cuffe parade,
Mumbai-400 005

* Subh Resins & Fuels P.Ltd.


6-56, Chandanagar,
Hyderabad 500 050

Plot No.42-A, IDA, Phase V,


Patancheru, Medak Dist., Andhra Pradesh

* Synthetics & Polymer Industries


Regd. Office & Factory:-
77 G.V.M.S. Audyogic Vasahat Ltd.,
6
Odhav, Ahmedabad-382 415

Profile of Petro Araldite Pvt. Ltd.,

PAPL was formerly a joint venture between Tamil Nadu Petro Products Ltd.
(TPL) and Ciba India Pvt. Ltd., a whollyowned subsidiary of the Swissbased Ciba
Speciality Chemicals Company.

The facility has the capacity to manufacture 30,000 tonnes epoxy resins,
formulations and ancillaries per year.

Vantico International has boughtout the Indian Partners, Tamil Nadu


Petroproducts (TPL), in Petro Araldite (PAPL) through its Indian arm. Currently, Vantico
holds 76% equity directly in PAPL. PAPL is in the business of polymers.

It manufactures epoxy resin out of epichlorohydrin produced by TPL. However,


following Ciba's global divestiture from the polymer business, CIPL sold its stake in
PAPL to Vantico for Rs.40 crore in March 2002.

After this deal, Vantico wanted TPL to reduce the price of Epichlorohydrin which
was resisted by the latter. Thereafter, Ciba had offered to pay compensation for the
premature termination of supply contract. On the basis of this, TPL had entered into a
fresh contract for supplying ECH at market rate against the earlier cost-plus price.

Vantico was created through a spin-off and management takeover of the


performance polymers division of Ciba Speciality Chemicals.

The Luxembourg incorporated company provides solutions in the field of


coatings, structural composites, adhesives, tooling materials, electrical and electronic
insulation, utilising thermosetting polymers of the automotive, electronic, electrical,
aerospace and consumer-durable industry.

Indian installed capacity


Around 50000 tonnes per annum

7
SECTION IV

IMPORT/EXPORT LEVEL

4.1 Import

4.1.1. Present import level : 3700 tonnes per annum

4.1.2 Countrywise Imports

Period April 2001 to March 2002

Country Qunatity in Kgs


Australia 5937
Austria 4580
Belgium 42586
Canada 24180
Chinese Taipei 319219
China P RP 170591
Czech Republc 75
France 17160
German F REP 279375
Hong Kong 14318
Ireland 4690
Israel 3550
Italy 174056
Japan 240446
Korea RP 506955
Malaysia 67750
Netherland 177243
New Zealand 1940
Saudi Arab 400
Singapore 17763
South Africa 3246
Spain 2000
Sri Lanka 56420
Sweden 500
Switzerland 78851
Thailand 621516
U Arab Emts 283827
UK 259500
USA 252932
Unspecified 100

8
4.1.3 Sample of individual imports of Epoxy Resins

Period 2002

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


Importers tonnes
Aroma Agencies 4.700 335646 Thailand 01.01.2002 to Mumbai
08.01.2002
Ganpati Resistors 0.530 79667 Tiwan 01.02.2002 to Mumbai
P.Ltd., 09.02.2002
Aroma Agencies 6.160 334318 Thailand 01.03.2002 to Mumbai
08.03.2002
Aroma Agencies 13.72 251288 Holland 01.04.2002 to Mumbai
05.04.2002
Asian PPG 18.000 1472853 Holland 01.05.2002 to Mumbai
Industries 07.05.2002
Asian Paints Inds. 14.750 940893 UK 11.06.2002 to Mumbai
17.06.2002

4.2 Export Level

4.2.1 Present export level : Around 1200 tonnes per annum

4.2.2 Countrywise Exports

Period April 2001 to March 2002

Country Qunatity in Kgs


Argentina 46640
Australia 3500
Bangladesh 1100
Belgium 161120
Brazil 17600
Canada 3160
China P RP 28865
Egypt A RP 8800
France 8000
Hong Kong 35600
Japan 2500
Kenya 6750
Korea DP RP 26000
Korea RP 172000
Malaysia 14020
Oman 30
9
Pakistan 1950
Saudi Arab 59050
Singapore 18301
Slovenia 17600
Sri Lanka 5680
Switzerland 236600
Thailand 2130
U Arab Emts 15300
UK 28710
USA 276696
Venezuela 396

4.2.3 Sample of individual exports of Epoxy Resins

Period 2002

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


Exporters tonnes
Petro Araldite 0.003 289 Colombo 13.01.2002 to Chennai
P.Ltd., 31.01.2002
Schenectady Beck 0.060 15792 Muscat 01.02.2002 to Mumbai
India 15.02.2002
Petro Aradite P.Ltd., 0.4 29290 Dubai 01.03.2002 to Chennai
12.03.2002
Supa Sales & 1.000 93600 Djibouti 01.05.2002 to Mumbai
Services 31.05.2002
Asian Paints (I) Ltd., 0.2 5459 Colombo 17.06.2002 to Mumbai
29.06.2002

10
SECTION V

PRICE TRENDS

Basic price : Around Rs.390 per kg

Taxes and duties Extra as applicable

11
SECTION VI

INDIAN DEMAND

Present Indian Demand : Around 10000 tonnes per annum

Petro Araldite Pvt. Ltd., and Atul Ltd. are the major players in the organised sector,
jointly holding a market share of about 80 %. The unorganised sector accounts for the
balance 20%.

Consolidated Statement of demand for Epoxy resin

S.No. Sectors Demand


In TPA
1. Industrial Protective Coatings 4000
2. Electrical and Electronic Industries 1300
3. Civil Construction Applications and Adhesives 2700
4. FRP Composites and Miscellaneous sector 2000
Total estimated demand 10000

Growth rate in demand : 6 to 7% per annum.

12
SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Epichlorohydrin and Bisphenol A are reacted under specified conditions of temperature


of reaction etc and the reaction product is washed, free from electrolytes. Further, it is
dehydrated under reduced pressure.

Source of technology

* National Research and Development Corpn. Ltd., (NRDC)


New Delhi

Major Plant and machinery and suppliers

Name of the equipment Name of the supplier

Reaction vessels Srivari Enterprises


SP-123, XIX Phase
Ambattur Indl. Estate,
Chennai-600 058

Chemicals Plant & Equipment Pvt. Ltd


Plot No.69, Old No.39,
II main Road, Ambattur Indl. Estate
Chennai-600 058

Filters Air Filter Industries


Mercantile Building
2nd Floor, G.P.O. Box 886
9A, Lal Bazar Street
Calcutta-700 001

Divya International
23A, Netaji Subhas Road,
8th Floor, Room No.28,
Calcutta-700 001

Air compressors ELGI Equipments Ltd.,


Elgi Industrial Complex III,
Trichy Road,
Singanallur, Coimbatore-641 005

K.G. Khosla Compressors Ltd.,


19.8 KMS, Delhi-Mathura Road,
Faridabad-121 003, Haryana

13
Kaeser Kompressoren India
9 & 10, Symphony `C' Bldg.,
Range Hill Road
Shivaji Nagar, Pune-411 020

Thermic fluid heaters Aero Therm Systems Pvt. Ltd.,


Plot No,1517, Phase – III
GIDC, Vatwa, Ahmedabad – 382 445

Energy Machine
C1, B/423, GIDC, IV- Phase, Vithal
Udyognagar, Dist.Anand, Gujarat

14
SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Raw material requirements

Basis One tonne of Epoxy Resin

Bisphenol A 0.73 tonne


Epichlorohydrin 3.33 tonne
Sodium Hydroxide 0.33 tonne
Toluene 0.13 tonne

Utilities

Total Installed power : 75 HP for the project of capacity 300


tonnes per annum.

Fuel: : 50 litres

Water required per day 6,000 litres.

Raw material availability

Name of the raw material Name of the supplier

Bisphenol-A Kesar Petroproducts Ltd., Ratnagiri

Epichlorohydrin Tamilnadu Petroproducts Ltd., Chennai

Toluene Kochi Refineries Ltd., Kerala

15
SECTION IX

GLOBAL SCENARIO

9.1. Important Global manufacturers of Epoxy resin include the following

* Dow Chemical (Australia) Ltd., Australia


* 3M France, France
* Rhone Poulenc Industries SA, France
* Kureha Chemicals GmbH, Germany
* Schering Aktinegesellschaft, Germany
* Ashi-Ciba Limited., Japan
* Asahi Chemical Industry Co. Ltd., Japan
* Asahi Denka Kogyo K.K.,Japan
* Mitsui Petrochemical Industries Ltd.,Japan
* Nippon Kayaku Co. Ltd.,Japan
* Nippon Steel Corporation, Japan
* Sumitomo Chemical Co. Ltd., Japan
* Air Products Nederland B.V., The Netherlands
* Resinas Sinteticas SA, Spain
* Borden (UK) Ltd., UK
* Airtech International Inc.,USA
* Abatron Inc, USA
* The Dow Chemical Co., USA

9.2. Range of Epoxy resin formulations made by global producer

Dow Chemical Co. – Trademark “DER” and “DEN”

Number Epoxy Equivalent Viscosity, Comments and representative


weight Centipoises at IR spectra
25 (Durran’s (Appendixes 4-1 and 13-1)
m.p., Deg.C)
DER 330 182-189 7000-10000 Low viscosity DGEBA resin
DER 331 186-192 11000-14000 Liquid DGEBA resin. IR No.4-1-10
DER 331 186-192 11000-14000 Liquid DGEBA resin. Low foam
VC IR No.4-1-10
DER 332 172-176 4000-5500 Pure, Liquid DGEBA resin.
DER 332 170-175 3000-6400 Pure, Liquid DGEBA resin. Low
LC Chlorine
DER 332 170-175 3000-6400 Pure, Liquid DGEBA resin.Low
VC foam
DER 334 178-186 500-700 DER 331 diluted with 12% butyl
glycidyl ether
DER 335 170-180 150-210 DER 331 diluted with 20% butyl
glycidyl ether
DER 336 181-192 4000-8000 DER 331 diluted with phenyl
16
glycidyl ether
DER 337 230-250 Semisolid DGEBA resin for
adhesives and coatings.
IR No4-1-11
DER 337- 230-250 (Based 10000-20000 DER 337 supplied at 90% solids in
X-90 on solids( xylene
DER 511 445-520 (68-80) Brominated epoxy resin, 18-20% Br
DER 511 445-520 (based 1070-2270 DER 511 supplied at 80% solids in
A-80 on solids) acetone
DER 511 445-520 (based 1070-2270 DER 511 supplied at 80% solids in
EK-80 on solids) MEK
DER 542 330-380 (51-61) Brominated epoxy resin based on
tetrabromo-bisphenol A, 44-48%
Br. IR No.4-1-17
DER 557 1600-2000 (113-123) Solid DGEBA RESIN
DER 660 425-575 (65-74) Low melting DGEBA resin
DER 661 475-575 (70-80) Low melting DGEBA resin
DER 661 475-525 (70-78) DER 661 with narrower m.p. and
PR WPE ranges
DER 661 475-575 (Based 3500-8500 DER 661 supplied at 80% solids in
A-80 on solids) acetone
DER 661 475-575 (Based 1000-4500 DER 661 supplied at 75% solids in
EK –75 on solids) MEK
DER 661 475-550 (Based 3500-8500 DER 661 PR supplied at 80% solids
PRA-80 on solids) in acetone
DER 662 575-700 (80-90) Solid DGEBA resin. Slightly higher
m.p. than DER 661
DER 664 875-975 (95-105) Solid DGEBA resin
DER 667 1600-2000 Based 2500-10000 DER 667 supplied at 55% solids in
EAX-55 on solids xylene and Dowanol EE acetate
(1 : 1)
DER 668 2000-3500 (120-140) Solid DGEBA resin
DER 669 3500-5500 (135-155) Solid DGEBA resin
DER 670- 425-475 based on 3000-8000 DER 660 supplied at 75% solids in
MK 75 solids MIBK
DER 670 425-475 based on 2000-10000 DER 660 supplied at 75% solids in
T-75 solids toluene
DER 670 425-475 based on 4000-14000 DER 660 supplied at 75% solids in
X-75 solids xylene
DER 670 475-575 based on 4500-9500 DER 661 supplied at 75% solids in
MK-75 solids MIBK
DER 671 475-575 based on 5500-12000 DER 661 supplied at 75% solids in
XM-75 solids MIBK and xylene (65 : 35)
DER 671 475-575 based on 7000-16000 DER 661 supplied at 75% solids in
T-75 solids toluene
17
DER 732 305-335 55-100 Diglycidyl ether of propylene glycol
(n=9). IR No.4-1-35
DER 736 175-205 30-60 Diglycidyl ether of propylene glycol
(n=9). IR No.4-1-34
Dow BGE 143 3 Butyl glycidyl ether. IR No.13-1-2.

DOW Epoxy Novolac

Number Epoxy Equivalent Viscosity, Comments and representative


weight centipoises at IR spectra
25 (Durran’s (Appendixes 4-1 and 13-1)
m.p., Deg.C)
DEN 431 172-179 1400-2000 at Polyglycidyl either of phenol
52 Deg.C formaldehyde novolac IR No.4-1-25
DEN 438 176-181 35000-70000 at Polyglycidyl either of phenol
52 Deg.C formaldehyde novolac IR No.4-1-25
DEN 438 176-181 Based 500-1200 DEN 438 supplied at 80% solids in
A-85 on solids acetone
DEN 438 176-181 based on 600-1600 DEN 438 supplied at 85% solids in
EK-85 solids MEK

DOW Experimental Resins

Number Epoxy Equivalent Viscosity, Comments and representative


weight centipoises at IR spectra
25 (Durran’s (Appendixes 4-1 and
m.p., Deg.C) 13-1)
QX 2174 226-238 (55-60) Low melting, solid epoxy novolac
resin. Similar to DEN 438 but
higher functionality. IR No.4-1-25.
QX 2174A- 226-238 Based QX 2174 supplied at 80% solids in
80 on solids acetone
QX 2174.1 230-245 (65-75) Low melting, solid epoxy novolac
resin. Higher functionality.
IR No.4-1-25.
QX 2221 182-188 500-700 DER 331 diluted with cresyl
glycidyl ether
QX 2232 137-144 17000 Blend of 80 parts DEN 438 with 20
parts of vinylcyclohexene dioxide
QX 2242.1 6340-38800 High molecular weight copolymer
of bisphenol A and epichlorohydrin
supplied at 40% solids in MEK
(Phenoxy)

18
QX 2242.2 627-1760 High molecular weight copolymer
of bisphenol A and epichlorohydrin
supplied at 40% solids in MEK
(Phenoxy)
QX 2242.3 1290-2270 High molecular weight copolymer
of bisphenol A and epichlorohydrin
supplied at 32% solids in Dowanol
EE Acetate (Phenoxy)
QX 2380 214-221 5000 Flame retardant resins. DGEBA
resin diluted with a Br containing
diluent. 16-18% BR
QX 375-415 (52-60) Low molecular weight, solid
2633.12 DGEBAresin
QX 186-192 11000-14000 Liquid of DGEBA resin. Modified
2633.14 for faster gel with amines
QX 193-203 16000-22000 High viscosity DGEBA resin
2633.17
QX 195-205 18000-35000 High viscosity DGEBA resin
2633.18
QX 198-220 23000-40000 High viscosity DGEBA resin
2633.19
QX 2638.6 194-210 Based 2200-5800 QX 2638.7 supplied at 85% solids
on solids in MEK
QX 2638.7 194-210 250000-550000 Polyglycidyl ether of Phenol
at 52 Deg.C formaldehyde novolac. Higher
functionality than DEN 438.
IR No.4-1-25.
QX 3441.4 450-550 (65-80) Solid, flame retardant epoxy resin.
Contains 13.5 to 14.5% Br. For
NEMA FR 4 laminates
QX 3441.4 450-550 Based QX 3441.4 supplied at 80% solids
A-80 on solids in acetone
QX 3441.5 550-625 (80-90) Higher Br (22-24%) than QX
3441.4. Also for NEMA FR-4
laminates
QX 3442.1 330-350 (51-61) Semisolid epoxy resin containing 44
to 48% Br. Based on
Tetrabromobisphenol A., Higher
purity than DER 542
QX 3450 225-300 13000-65000 at Liquid epoxy resin containing 24-
38 Deg.C 26% Br
QX 3476 135 7000 at 70 Tetraglycidyl ether of bisresorcinol
Deg.C F. Tetrafunctional epoxy resin.
IR No.4-1-20.

19
SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND


PROFITABILITY PROJECTIONS

Economic capacity 300 tonnes per annum

Project cost : Rs.216 lakhs

Assessment of project cost

1. Land

S.No. Description Cost


Rs.in lakhs
1.1 Cost of land of one acre at Rs.5.5 lakh per acre 5.50
1.2 Cost of levelling, laying internal roads/fencing and 0.55
compound wall

Subtotal 6.050

2. Building

S.No. Description Cost


Rs.in lakhs
2.1 Factory building of area 320 sq.m. at Rs.3200/sq.m. 10.24
2.2 Non-factory building of area 50 sq.m.at Rs.4500/sq.m. 2.25
Subtotal 12.49

3. Cost of Plant & Machinery

S.No. Description Cost


Rs.in lakhs
3.1 Cost of basic plant and machinery 44
3.2 Instrumentation and control 3.3
3.3 Pipelines and valves 4.4
3.4 Structurals for erection 2.2
Subtotal 53.9
3.5 Octroi, excise duty, sales tax, etc.at 12% 6.47
3.6 Packaging and insurance charges (2%) 0.88
3.7 Transportation charges (2%) 0.88
3.8 Machinery stores and spares (2%) 0.88
3.9 Foundation charges (2%) 0.88
3.10 Installation charges (2%) 0.88
Total cost of plant and Machinery 64.77

20
4. Technical know-how fees Rs.2 lakhs

5. Miscellaneous fixed assets

S.No. Description Cost


Rs.in lakhs
5.1. Electrification 3
5.2. Steam boiler and auxillaries 4.5
5.3. Water storage tank, borewell etc. 0.8
5.4. Fuel storage tank 1.3
5.5. Laboratory equipment 0.8
5.6. Office machinery & equipment 1.50
5.7. Material handling equipment, packaging machinery, 1.50
weigh balance, etc.
5.8. Diesel generator 5
5.9. Effluent treatment 1.20
Total 19.6
6. Preliminary & Pre-operative expenses:

S.No. Description Cost


Rs.in lakhs
6.1. Preliminary expenses 0.8
6.2. Pre-operative expenses:- 0
6.2.1 Establishment 0.8
6.2.2 Rent rates and taxes 0.8
6.2.3 Travelling expenses 1.40
6.2.4 Interest and commitment charges on borrowings 7
6.2.5 Insurance during construction period 1.2
6.2.6 Other preoperative expenses and deposits 0
6.2.7 Interest on deferred payment 0
Total 12

7. Provision for contingency Rs. 7.3 lakhs

8. Working capital margin Rs. 90.43 lakhs

9. Total project cost Rs.215.78 lakhs

Say Rs.216 lakhs

10. Means of Finance

Promoter's contribution Rs.86 lakhs


Term loan from financing institutions Rs. 130 lakhs
Total project cost Rs.216 lakhs

21
11. Financial statements

A Variable cost Rs. in lakhs

Raw material and utilities 830.48


Spares and maintenance 3.95
Selling expenses 63
Total variable cost (A) 897.43

B Fixed cost

Salaries and wages 9


Interest on term loan and working capital loan 72.18
Depreciation 8.87
Administrative expenses 35.1
Total fixed cost (B) 125.15

C. Total cost of production (A+B) 1022.58

D. Selling price per kg. (in Rupees) 390

E. Annual sales turnover 1170

F. Net profit before tax (E-C) 147.42

G. Breakeven point in % 47%

22
SECTION XI

SWOT ANALYSIS

Strength Growing demand

Weakness Small capacity plants


Lack of global competitiveness

Opportunity Introduction of newer grades

Threat Imports

23
SECTION XII

FACTORS INFLUENCING THE POSTION FOR A NEW INDUSTRY AND


RECOMMENDATIONS

The import of Epoxy resin is likely to continue in view of the price factors and the lack of
global competitiveness of the Indian units.

In recent times, major investment have been made by Petro Araldite Pvt. Ltd., in setting
up a large capacity Epoxy resin unit in the country.

However, the Indian units face problems in capacity utilisation due to imports

24