AMMONIUM CHLORIDE

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATIONS

SECTION II PRODUCT APPLICATIONS

SECTION III INDIAN MANUFACTURERS

SECTION IV IMPORT/EXPORT TRENDS

SECTION V PRICE TRENDS

SECTION VI INDIAN DEMAND

SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS 10

SECTION VIII RAW MATERIALS REQUIREMENTS 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

1.1. Product characteristics

Appearance Colourless or cryst masses or white, granular

powder,
Chemical formula NH4Cl
Molecular weight 53.50
Taste Cooling, saline taste
Odour Odourless
Density 1.520
pH of aqeous solution 25 deg.C
Solubility Highly soluble in water
Soluble in methanol, ethanol
Almost insoluble in acetone, ether and ethyl
acetate

Storage Store in cool, dry, well-ventilated area away

from alkaline material

1.2. Product Specificatons

Ammonium chloride (as NH4Cl) % by wt. min 99.50

Moisture, % by wt. max. 0.50
Iron (as Fe)% by wt. max. 0.01
Sulphates (as NH4)2SO4), % by wt. max. 0.10
Total sulphated residue on sublimation, % by 0.30
wt. max.
pH 4.5 to 5.2
Matter insoluble in water, % by wt. max. 0.1
Heavy metals (as Pb), ppm max. Nil
Arsenic (as As2O3) ppm max, Nil

SECTION II

PRODUCT APPLICATIONS
2
 Application sector Use pattern

Agrochemicals Fertiliser

Batteries Used in the manufacture of batteries, including dry cells and as a

constituent of soldering fluids to protect metals from oxidation
during the soldering.

Miscellaneous Used in galvanizing iron and in the textile industries.

As a flux for coating sheet iron with zinc; tinning; in dry

batteries; dyeing, freezing mixtures, electroplating, to clean
soldering irons, safety explosives, lustering cotton, tanning; in
washing powders; manufacturing dyes; in cement for iron pipes;
for snow treatment.

SECTION III

INDIAN MANUFACTURERS
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3.1. Fertiliser grade

* Tuticorin Alkali Chemicals & Fertilisers Ltd.,

Factory
Harbour Construction Road,
Mullakadu Village, Tuticorin-628 005.

Capacity: Ammonium Chloride (Fertiliser grade) - 66,000 TPA,

* Punjab National Fertilisers & Chemicals Ltd.,

SCO 119-120, Sector 17-B
GPO Box 184, Chandigarh

Factory : Naya Nangal, Dist. Ropar, Punjab

Capacity: 66000 tonnes per annum of Ammonium chloride fertiliser

3.2. Battery grade

* Tamil Nadu Petroproducts Ltd.,

(Earlier known as SPIC Heavy Chemicals Ltd.,)
Manali Express Highway, Post Box No.9
Manali, Madras-600 068.

The above unit is largest producer of Ammonium chloride of battery grade in India. The
installed capacity and production level of Ammonium chloride of battery grade is given
below.

Capacity: 21,000 tonnes per annum

Production level 8500 tonnes pere annum

* Sabero Organics Gujarat Ltd.,

A-302, Phoenix House,
3rd Floor, 462 Senapati Bapat Marg,
Worli (East), Mumbai-400 013.

3.3. Others

* Flame Pharma P. Ltd.,

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 Universal House,50, Kunj Alkapuri,
Baroda - 390 005.

* Dev Synthetics
S# 143/2/2/4, Tathawade
Pune 411 033
Telefax : 020-725877/723161

* Crystal Clear Products

C1-1031/9, GIDC, Panoli,
Ankleshwar

* Hitkari Chemicals
Shed No. C-1-B-2515, Ankleshwar,
Bharuch-393 002

* Raghavendra Chemicals,
31/H 2nd Stage,Industrial Suburb,
Mysore South,Mysore 570 008.

* Meron (India) Pvt. Ltd.,

XII/1541,Santo Gopalan Road,
Chullickal, Ernakulam,Cochin-682 005.

* Novartis India Limited

(Formerly Known as Hindustan Ciba Geigy Ltd.);
Crop Protection Sector,
Royal Insurance Building,
14, Jamshedji Tata Road,
Churchgate, Mumbai-400 020

* National Chemical Industries

602, Monalisa, Hari Niwas,
Thane (West)-400 602,Maharashtra

Works : W-43, MIDC, Morivli,

Ambernath, Maharashtra-421 501

* Vinipul Enterprises
1/3, Kanthari Colony, 2nd Road,
Chembur, Mumbai-400 071.

* Biotan Laboratories (India) Ltd.,

AA-147, III Avenue,

5
Anna Nagar, Madras-600 040.

Indian installed capacity

Around 30,000 tonnes per annum

SECTION IV

6
 IMPORT/EXPORT TRENDS

4.1. Imports

4.1.1 Present import level 6200 tonnes

4.1.2 Period April 2001 to March 2002:

Country Quantity in Kgs

China P RP 85000
German F REP 1097968
Indonesia 5000000
Singapore 5000
USA 16786

4.2 Exports

4.2.1 Present export level 1295 tonnes

4.2.2 Countrywise exports

Period April 2001 to March 2002

Country Quantity in Kgs

Australia 18000
Bangaladesh 57000
Chinese Taipei 32800
Congo P REP 5850
Egypt A RP 620
Ethiopia 2250
France 20780
Indonesia 10000
Iran 5000
Italy 101750
Kenya 42000
Korea Rp 16000
Kuwait 10
Mayanmar 40000
Nepal 57510
Netherland 40000
Nigeria 16000
Philippines 45990
Saudi Arab 22190
Singapore 38000
Slovenia 20000
South Africa 6
Sri Lanka 2160
7
Syria 10000
Tanzania REP 28000
Thailand 29250
Uganda 26500
U Arab Emts 528028
UK 24000
USA 24000
Yemen Republc 31000

4.2.3 Sample of individual exports

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

tonnes
Sampat & Co. 8 111747 Istanbul 16.02.2002 to Mumbai
28.02.2002
Glow Export Trading 0.1 4825 Matadi 16.02.2002 to Mumbai
28.02.2002
Parke Davis 0.750 32400 Colombo 16.03.2002 to Mumbai
31.03.2002
Glow Export Trading 0.1 4850 Pontenoire 16.03.2002 to Mumbai
31.03.2002
Merck Ltd., 0.005 1186 Yangoon 01.04.2002 to Mumbai
30.04.2002
Thomas Baker 0.008 694 Kuwait 17.06.2002 to Mumbai
(Chemicals) 29.06.2002
Newton Pharma 0.4 18430 Dar Esalaam 01.08.2002 to Mumbai
19.08.2002
Gemini Exports 0.1 10670 Hong Kong 01.08.2002 to Mumbai
19.08.2002
B.B Chemicals Inds. 0.002 4753 Hodeidah 20.08.2002 to Mumbai
31.08.2002
Newton Pharma 0.400 18430 DarEsalaam 20.08.2002 to Mumbai
31.08.2002

8
 SECTION V

PRICE TRENDS

Period: November 2002

Ex-factory price Rs.14 per kg

Taxes and duties Extra at actuals

9
 SECTION VI

INDIAN DEMAND

Ammonium chloride is used for battery application and other non fertiliser applications
also.

The estimated demand for Ammonium chloride in the country for non fertiliser
application is around 18000 tonnes per annum.

The estimated growth rate in demand is 7 to 8% per annum.

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 SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Process outline

Ammonium chloride is produced by the direct neutralisation of Hydrogen chloride by

Ammonia.

The reaction is carried out in reactors under vacuum. Ammonium chloride crystals
formed are centrifuged and dried before packing.

The mother liquor from the centrifuge is recycled back to the reactors. The gases leaving
the reactors are scrubbed thoroughly before venting to atmosphere through vacuum
pumps. The product Ammonium chloride conforms to the specifications for the pure grade
for use in batteries.

Process description

Hydrogen chloride gas, diluted with atmospheric air, enters the reactors through plunger
pipes.

Ammonia vapour enters the reactors through tangential pipes at the bottom. The reaction
is carried out under vacuum to maintain the reaction temperature in the required range.
The air that bubbles through the solution causes brisk agitation keeping the crystals in
suspension and moderates neutralisation reaction, helping uniform formation of salt.

The slurry from the reactors containing crystals is pumped to a centrifuge feed vessel. The
thickened slurry from the feed vessel is fed to the centrifuge.

The wet crystals, separated from the liquor in the centrifuge, are fed to the drying unit and
the mother liquor is returned to the reaction section.

The wet crystals received in the hopper of the dryer feeding arrangement, are dried while
they are carried out drying by hot air. The air carrying the crystals goes to cyclones
where the dried product is separated and the air is exhausted to the atmosphere.

The gases from the reactors are scrubbed to recover excess ammonia. The scrubbing
medium is a dilute hydrochloric acid solution and a bleed from the circulating liquor is fed
back to the reaction section.

The gases, after a final water scrubbing, are drawn by vacuum pumps and discharged to
atmosphere.

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Source of technology

* ChemEng Consultants,
516,Tower II, Ramjharukha,
S.V.Road,Andheri(W),
Mumbai-400 058

Major plant and machinery suppliers

Name of the equipment Name of the suppliers

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

Centrifuge Hydrabad Met Chem. Pvt. Ltd.,

34, C.I.E., Phase II,
Gandhinagar, Opp. IDPL Colony
Hyderabad-500 037

Spark Engineers Pvt. Ltd.,

5/332, State Bank Colony II
Salem-636 004

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

12
Rotary dryers Bhuvaneswari & Co.
Old Trunk Road
Chennai-600 043

Dynamic Furnaces Pvt. Ltd.

65, Universal Industrial Estate
I.B. Patel Road, Goregaon (E),
Mumbai-400 063

Pulveriser ACE Pack Machines

23, V.N. Industrial Estate
Bharathi Colony,Near Athiparasakthi Temple
Peelamedu, Coimbatore-641 004

Frigmaires Engineers
PO Box 16353, 8, Janata Industrial Estate
Senapati Bapat Marg
Opp Phoenix Mill, Lower Parel (W)
Mumbai-400 013

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 SECTION VIII

RAW MATERIAL REQUIREMENTS AND AVAILABILITY

Raw material requirement

Basis One tonne of Ammonium chloride

Hydrogen chloride gas (as 30% HCl) 2.16 tonnes

Ammonia 0.350 tonnes

Hydrochloric acid would be of 30% strength

Utility per tonne of product

Power 100 units

Fuel 40 litres

Raw material availability

Source of supply

Name of the raw material Name of the supplier

Hydrochloric acid DCW Ltd., Tamilnadu

SPIC, Chennai
Chemplast Sanmar Ltd., Salem

Ammonia SPIC, Cuddalore

Madras Fertilisers Ltd. Chennai

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 SECTION IX

GLOBAL SCENARIO

Global demand for Ammonium chloride

of battery grade 0.2 million tonnes per annum

Global growth rate in demand 2 to 3% per annum

Major global producers

Important global manufacturers of various grades of Ammonium chloride include the

following.

* Asahi Glass Co. Ltd.,

Tokyo, Japan

* Central Glass Co, Ltd.

Kowa-Hitotsubashi Bldg.
3-7-1, Kanda-Nishiki-Cho
Chiyoda-ku, Tokyo 101

* Fuji Kasei Co Ltd.,

13-16, Awaza 1-chome
Nishi-ku, Osaka

* The Mitsubishi Corporation Chemicals Group

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

* Nitto Chemical Industry Co. Ltd.,

New Marunouchi Bldg.,
5-1, Marunouchi 1-Chome.
Chiyoda-ku, Tokyo 100

* Toyo Soda Manufacturing Co.,

Toso bldg.,7-7, Akasaka 1-Chome,
Minato-Ku, Tokyo 107

* Yokkaichi Chemical Co. Ltd.,

1, Miyahigashicho, 2-Chome
Yokkaichi City, Mie Pref 510

* ICI Agrochemicals
Fernhurst Haslemere
Surrey GU27 3JE

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* Synetix, Clitheroe
Pimlico Industrial Area,
West Bradford Road,
Clitheroe, Lancashire BB7 4QB
United Kingdom.

* Allan Chemical Corporation,

Post Box 1837, Fort Lee
NJ 07024-8227

* Amresco Inc.
30125 Solon Indl. Parkway,
Solon, Ohio 44139

* Alfa Aesar,
A Johnson Matthey Company,
30, Bond St., Ward Hill, MA 01835-8099

* BASF Corporation,
Plastic Materials.
3000 Continental Drive North
Mount Olive, NJ 07828-1234

* General Chemical Corporation

90, East Halsey Road,
Post Box No.393
Parsippany, New Jersey
NJ 07054-0397

* International Chemicals Inc.,

One World Trade Centre, Suite 8665,
New York 10048

* Mallinckrodt Inc.,
Post Box No,5439
St.Louis MO 63147

* Mineral Research & Development

One Woodlawn Green
Suite 250, Charlotte, NC 28217

* Zaclon Inc.,
2981, Independence Road,
Cleveland, OH 44115.

* Sitara Chemical Industries Ltd.

32-Km Sheikhupura Road Faisalabad,
Pakistan

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 SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND

PROFITABILITY PROJECTIONS

Economic capacity : 1500 tonnes per annum

Project cost : Rs.122 lakhs

Assessment of project cost

1. Land

S.No. Description Cost

Rs.in lakhs
1.1 Cost of land of two acre at Rs.5.5 lakh per acre 11
1.2 Cost of levelling, laying internal roads/fencing and 0.11
Compound wall

Subtotal 11.11

2. Building

S.No. Description Cost

Rs.in lakhs
2.1 Factory building of area 500 sq.m. at Rs.3200/sq.m. 16
2.2 Non-factory building of area 100 sq.m.at Rs.4500/sq.m. 4.5
Subtotal 20.5

3. Cost of Plant & Machinery

S.No. Description Cost

Rs.in lakhs
3.1 Cost of basic plant and machinery 38.5
3.2 Instrumentation and control 2.9
3.3 Pipelines and valves 3.9
3.4 Structurals for erection 2
Subtotal 47.3
3.5 Octroi, excise duty, sales tax, etc.at 12% 5.7
3.6 Packaging and insurance charges (2%) 0.95
3.7 Transportation charges (2%) 0.95
3.8 Machinery stores and spares (2%) 0.95
3.9 Foundation charges (2%) 0.95
3.10 Installation charges (2%) 0.95
Total cost of plant and Machinery 57.75

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4. Technical know-how fees Rs.1.20 lakhs

5. Miscellaneous fixed assets

S.No. Description Cost

Rs.in lakhs
5.1. Electrification 3.50
5.2. Steam boiler and auxillaries 2.8
5.3. Water storage tank, borewell etc. 1.3
5.4. Fuel storage tank 1.30
5.5. Laboratory equipment 1.50
5.6. Office machinery & equipment 1.40
5.7. Material handling equipment, packaging machinery, 1.50
weigh balance, etc.
5.8. Diesel generator 4.4
5.9. Effluent treatment 1.30
Total 19

6. Preliminary & Pre-operative expenses:

S.No. Description Cost

Rs.in lakhs
6.1. Preliminary expenses 1.80
6.2. Pre-operative expenses:- 0
6.2.1 Establishment 1.70
6.2.2 Rent rates and taxes 2.20
6.2.3 Travelling expenses 2.20
6.2.4 Interest and commitment charges on borrowings 7
6.2.5 Insurance during construction period 1
6.2.6 Other preoperative expenses and deposits 0
6.2.7 Interest on deferred payment 0
Total 15.9

7. Provision for contingency Rs.6.6 lakhs

8. Working capital margin Rs. 15.5 lakhs

9. Total project cost Rs.149.65 lakhs

Say Rs.150 lakhs

10. Means of Finance

Promoter's contribution Rs.60 lakhs

Term loan from financing institutions Rs.90 lakhs
Total project cost Rs.150 lakhs

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11. Financial statements

A Variable cost Rs. In lakhs

Raw material and utilities 112

Spares and maintenance 3.5
Selling expenses 10.5
Total variable cost (A) 126

B Fixed cost

Salaries and wages 7.2

Interest on term loan and working capital loan 24.5
Depreciation 8.3
Administrative expenses 6.3
Total fixed cost (B) 46.3

C. Total cost of production (A+B) 172.3

D. Selling price per kg. (in Rupees) 14

E. Annual sales turnover 210

F. Net profit before tax (E -C) 37.7

G. Breakeven point in % 55%

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 SECTION XI

SWOT ANALYSIS

Strength Growing Demand

Weakness Need to set up plant near supply source of

Ammonia

Opportunity Scope for improving product quality and

specifications for newer applications

Threat Imports

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 SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATIONS

The Ammonium chloride of battery grade project can be justified based on local demand
supply scenario.

21