The recent achievements in developing covid vaccine in India by Bharat Biotech International Limited and successful development of 2-deoxy-D-glucose (2-DG), an anti-viral drug as an adjunct therapy for moderate to severe coronavirus patients by Defence Research and Development Organisation (DRDO), has certainly enhanced the faith of Indians about the capability of Indian scientists and researchers. Such achievements have also been duly noted by several international agencies.
The achievements in a few other fields such as space science technology, nuclear power projects, research in the field of atomic energy have also enhanced the recognition of the country men about the creditable contribution of scientists for national development.
The chairman of Infosys has recently said that India is now on the cusp of major Artificial Intelligence (AI) innovations.Given the recent achievements in the field of AI in India such as development of Aadhaar or UPL, it is pointed out that the work that Indian researchers are doing is unique and Indian researchers are creating the world’s best language capability by translating text to speech and language to language. Further, it is justifiably claimed that India can show to the world how well India can create such a platform.
All these are glorious and praiseworthy achievements that the country should be proud of. However, going further and taking a good look at the overall chemical industry scenario in India in a holistic manner, one cannot but come to the conclusion that Indian chemical industry has missed many opportunities in the past to forge ahead due to variety of reasons. Certainly, the achievements made by Indian chemical industries are far lower than the Indian achievements in other fields such as space science technology, atomic research and others.
While it is fashionable now to blame government policies for the lack of adequate achievements in the field of Indian chemical industry, careful analysis would indicate that government has been proactive and cannot be blindly blamed for the near stagnant level of Indian chemical industry. The ground reality is that even for setting up medium scale chemical projects (sometimes even for small scale chemical projects), Indian project promoters are seeking technology from abroad and often end up paying exorbitant fees for acquiring the technology. Where are Indian R&D efforts? The Indian project promoters, investors, research and development agencies as well as trading houses involved in chemical industry have a lot to explain and it is high time that they should do careful investigation amongst themselves as to what they have achieved so far and what they have not achieved yet.
To cut the long story short, a few case studies of missed opportunities by the Indian chemical industry are discussed in this article.While a few case studies are briefly described as samples, there are so many other opportunities remaining unexploited for whatever reasons.One thing that should be noted here is that even as India is confronted with covid19 crisis for over eighteen months now, several chemical industries in India have turned out reasonably good performance and have surplus investable resources. While the intention is not to blame the managements and investors of chemical industries in India, it would be enoughto say that several chemical industries have invested their surplus resourcesin unrelated areas such as real estates, mutual fund and others.
The glaring example that one cannot miss is that of the management of Reliance Industries, who thought it fit to move on to invest in information network such as Jio, retail marketing, etc. To this extent, the investment of Reliance Industries in petrochemicals and chemical industry are bound to go down. Rarely do we see international organisations like BASF, DOW and others investing their surplus resources in unrelated areas to such an extent but they have continued to plough the resources in further developing the core areas of functions.The example of Reliance Industries is pointed out here, since Reliance Industries has glorious achievements in petrochemical industry in the past and many wonder why it has turned its attention elsewhere.
A few case studies given below of unexploited opportunities would highlight the cause for concern about the future growth profile of Indian chemical industry.All these projects have high level of relevance to Indian industrial and economic growth pattern.
Rutile grade titanium dioxide pigment
Rutile grade Titanium dioxide pigment finds application in paint and coatings, plastics, paper and various industries. Present Indian demand is around 2,50,000tons per annum and Indian import is around 2,20,000 ton per annum. There is only one producer by chloride process in Kerala. The raw material is ilmenite and chlorine, which are plentifully available in India. No new project is in the advanced stage of planning or implementation at present.
L-Lysine/L-Lysine HCl
L-Lysine HCl is an amino acid, extensively used in poultry/cattle feed as input and in pharmaceutical formulations. The feedstock is starch and hydrochloric acid, which are available in India. The present import is around 60,000ton per annum. The product is not produced in India and no new project is in the advanced stage of planning or implementation in the country.
Citric acid
Citric acid is used extensively in pharmaceutical,food and other industries. The present import is around 1,00,000tons per annum. Two units which were set up several years back were closed due to uneconomic capacity. The feedstock is starch, which is available. No new project is in the advanced stage of planning or implementation in the country.
Silicon metal
Silicon metal is used as raw material for silicone compounds, alloying agent for aluminium alloy, as feedstock to the production on polycrystalline silicon (for use in electronic and solar energy sector), as raw material for silicon tetrachloride, ethyl silicate and fumed silica. The Indian import is around 70,000 tons per annum. The feedstock is quartz silica, which is available. No new project is in the advanced stage of planning or implementation in the country.
Alkyl Ketene Dimer Wax (AKDWax)
Alkyl ketene dimer wax is used as an industrial sizing agent for paper to increase the hydrophobic properties of paper.The feedstock is stearic acid, which is adequately available. The present import is around 9,000tons per annum. No new project is in the advanced stage of planning or implementation in the country.
Vinyl Acetate Monomer (VAM)
Vinyl acetate monomer (VAM) is an important intermediate used in the making of a number of polymers and resins for adhesives, coatings, paints, films, textiles and other end-products. The most important and largest use of VAM is in the manufacture of homopolymer polyvinyl acetate. The other use of VAM is in the production of polyvinyl alcohol, which is produced from polyvinyl acetate. The feedstock is ethylene or ethyl alcohol and acetic acid. The present import is around 180,000 tons per annum. Two units were operating in India earlier and both have been closed for whatever reasons. No new project is in the advanced stage of planning or implementation in the country.
Algae biofuel
Algae is a quick growing crop that has 25 to 30 percent oil content. It needs only sunlight and carbon dioxide for growing. Poor quality water is adequate for algae cultivation. Algae biofuel can be used as fuel. The by products include value added chemicals such as ethanol, butanol etc. by fermentation of algae biomass. Several projects are successfully operating in USA and other countries. In several regions in India, integrated algae based complex can be set up, where algae fuel can be produced and used for small scale power generation to meet the local requirements. This would be an elegant way of integrating agricultural operation with industrial operation. No new project is in the advanced stage of planning or implementation in the country.
Methanol from municipal solid waste
Methanol has widespread applications in multivarious industries. Indian import of methanolis more than two million tons per annum. Project for production of methanol from municipal solid waste is now successfully operating in Canada. A new project is being planned in Europe. Municipal solid waste is available in large quantity in India. No new project is in the advanced stage of planning or implementation in the country.
Dimethyl ether (DME)
Dimethyl ether is a fuel that can be used alone or blended with LPG for use as domestic and industrial fuel. DME is extensively produced in China from methanol. By setting up several DME projects in India of economic size, import of crude oil/natural gas/LPG can be reduced to a considerable extent. DME is an eco-friendly fuel. The requirement of methanol can be met by import, until such time that domestic methanol capacity would be built up using as coal or other feedstock. No new project is in the advanced stage of planning or implementation in the country.
Olefins (ethylene and propylene) from methanol
India is unable to set up several ethylene and propylene based projects due to scarce supply of ethylene and propylene in the country, which are difficult to import in large quantity. For example, India is importing more than twomillion tonsper annum of PVC as PVC capacity is not being built up due to
non-availability of ethylene. So many other examples can be pointed out. Several ethylene/propylene projects from methanol of economic capacity can be set up in different parts of the country and several ethylene/propylene based projects can be set up. Number of ethylene/propylene projects based on methanol are successfully operating in China. The requirement of methanol can be met by import, until such time that domestic methanol capacity would be built up using as coal or other feedstock. No new project is in the advanced stage of planning or implementation in the country.
Adipic Acid
Adipic acid is used in the production of plasticizers, unsaturated polyurethane resins, etc. The feedstock for adipic acid is benzene, whichis adequately available in India. The import of adipic acid is around 35,000 tons per annum. No new project is in the advanced stage of planning or implementation in the country.
Acrylamide Monomer
Acrylamide Monomer is used in water treatment, paper industry, mineral processing, etc. Indian import is round 15000 tons per annum. The feedstock is acrylonitrile, which has to be imported. No new project is in the advanced stage of planning or implementation in the country.
Bisphenol A
Bisphenol A is used in the production of epoxy resin. The present Indian import is around 80,000 tons per annum. The feedstock is phenol and acetone, which are produced in India. But, phenol and acetone may have to be imported as they are in short supply. No new project is in the advanced stage of planning or implementation in the country.
Chlorosilane
Chlorosilanes are a group of reactive, chlorine-containing chemical compounds, related to silane and used in many chemical processes. Each such chemical has at least one silicon-chlorine bond. Chlorosilanes can be classified as organic chlorosilanes and inorganic chlorosilanes. Most of the silicone derivatives (fluids, elastomers and resins) are made from dichloro dimethyl silane. Indian import is around 5,000 tons per annum.Organic chlorosilanes are not produced in India. Silicon tetra chloride, which is an inorganic chlorosilane, is presently produced in India. Basic silicone monomers and fluids and products such as siloxanes are imported. Silicon and methyl chloride are the feedstock. No new project is in the advanced stage of planning or implementation in the country.
Epichlorohydrin
Epichlorohydrin is used in the production of epoxy resin and in miscellaneous sector. The basic feedstock for production of epichlorohydrin through glycerine route is refined glycerin and HCl gas, which are available in India. The present import is around 70,000 tons per annum. One project is in the planning stage. There is scope for more projects, considering the growth potential in demand.
Styrene Monomer
Styrene Monomer is used in the production of polystyrene, ABS resin and in number of other industries. The feedstock is ethylene or ethanol and benzene. The Indian import is around eight lakh tons per annum. No new project is in the advanced stage of planning or implementation in the country.
Xanthan Gum
Xanthan gum is used in food, personal care, pharmaceutical and other sector. Indian import is around 6,000 tons per annum. Xanthan gum is produced from carbohydrates such as glucose, sucrose, soluble starch. No new project is in the advanced stage of planning or implementation in the country.
Xylitol
Xylitol is used as bulk sweetener, mainly in non-carcinogenic confectionary and in oral hygiene preparations like toothpaste and mouth wash. The production process for xylitol from straw has been developed, using a bio process by Danish Institute of Biotechnology. The present import is around 300 tons per annum. No new project is in the advanced stage of planning or implementation in the country.
Speciality chemicals for lithium ion battery cell
Government of India is putting forth extensive efforts to promote electric vehicles in India. For the electric vehicles, lithium ion battery is an essential component. Lithium ion battery cell is not being produced in India. While new projects for lithium ion battery cell are being planned, such project require number of speciality chemicals such as lithium carbonate, lithium hydroxide, electrolytes, separators, high purity natural graphite etc. No new project is in the advanced stage of planning or implementation in the country.
Invitation for webinar
Nandini Consultancy Centre, a firm of chemical engineers and chemical business consultants based in Chennai and Singapore (www.nandinichemical.com) will be organising a webinar on 12th June, 2021 (Saturday) between 6 pm and 7:30 pm to discuss the missed investment opportunities in Indian chemical industry. Those interested in participating in the webinar may contact Nandini Consultancy Centre, nandinichemical@gmail.com
Tel: 044-43540719/24916037
