INDUSTRY PROFILE Chemical Industry The chemical industry comprises the companies that produce industrial chemicals.

It is central to modern world economy, converting raw materials (oil, natural gas, air, water, metals, and minerals) into more than 70,000 different products. Polymers and plastics, especially polyethylene, polypropylene, polyvinyl chloride, polyethylene

terephthalate, polystyrene and polycarbonate comprise about 80% of the industrys output worldwide. Chemicals are used to make a wide variety of consumer goods, as well as thousands inputs to agriculture, manufacturing, construction, and service industries. The chemical industry itself consumes 26 percent of its own output. Major industrial customers include rubber and plastic products, textiles, apparel, petroleum refining, pulp and paper, and primary metals. Chemicals are nearly a $2 trillion global enterprise, and the EU and U.S. chemical companies are the world's largest producers. The largest corporate producers worldwide, with plants in numerous countries, are BASF, Dow, Shell, Bayer, INEOS, Exxon Mobil, DuPont, and Mitsubishi, along with thousands of smaller firms. In the U.S. there are 170 major chemical companies. They operate internationally with more than 2,800 facilities outside the U.S. and 1,700 foreign subsidiaries or affiliates operating. The U.S. chemical output is $400 billion a year. The U.S. industry records large trade surpluses and employs more than a million people in the United States alone. The chemical industry is also the second largest consumer of energy in manufacturing and spends over $5 billion annually on pollution abatement.

In Europe, especially Germany, the chemical, plastics and rubber sectors are among the largest industrial sectors. Together they generate about 3.2 million jobs in more than 60,000 companies. Since 2000 the chemical sector alone has represented 2/3 of the entire manufacturing trade surplus of the EU. The chemical sector accounts for 12% of the EU manufacturing industry's added value. The chemical industry has shown rapid growth for more than fifty years. The fastest growing areas have been in the manufacture of synthetic organic polymers used as plastics, fibers and elastomers. Historically and presently the chemical industry has been concentrated in three areas of the world, Western Europe, North America and Japan (the Triad). The European Community remains the largest producer area followed by the USA and Japan. The traditional dominance of chemical production by the Triad countries is being challenged by changes in feedstock availability and price, labour cost, energy cost, differential rates of economic growth and environmental pressures. Instrumental in the changing structure of the global chemical industry has been the growth in China, India, Korea, the Middle East, South East Asia, Nigeria, Trinidad, Thailand, Brazil, Venezuela, and Indonesia. Technology As accepted by chemical engineers, the chemical industry involves the use of chemical processes such as chemical reactions and refining methods to produce a wide variety of solid, liquid, and gaseous materials. Most of these products are used in manufacture of other items, although a smaller number are used directly by consumers. Solvents, pesticides, lye, washing soda, and Portland cement are a few examples of product used by

consumers. The industry includes manufacturers of inorganic- and organic-industrial chemicals, ceramic products, petrochemicals,

agrochemicals, polymers and rubber(elastomers), oleo chemicals (oils, fats, and waxes), explosives, fragrances and flavors. Examples of these products are shown in the Table below.

Product Type Examples inorganic industrial ammonia, nitrogen, sodium hydroxide, sulphuric acid, Organic industrial acrylonitrile, phenol, ethylene oxide, urea, Ceramic products silica brick, frit Petrochemicals benzene, herbicides, ethylene, Polymers styrene, Agrochemicals Bakelite, fertilizers, polyester, insecticides, Elastomers

polyethylene,

polyisoprene, neoprene, polyurethane, Oleo chemicals lard, soybean oil, stearic acid, Explosives nitroglycerin, ammonium nitrate, nitrocellulose, Fragrances and flavors benzyl benzoate, coumarone, vanillin. Although the pharmaceutical industry is often considered a chemical industry, it has many different characteristics that put it in a separate category. Other closely related industries include petroleum, glass, paint, ink, sealant, adhesive, and food processing manufacturers. Chemical processes such as chemical reactions are used in chemical plants to form new substances in various types of reaction vessels. In many cases the reactions are conducted in special corrosion resistant equipment at elevated temperatures and pressures with the use of catalysts. The products of these reactions are separated using a variety of techniques including distillation especially fractional distillation, precipitation, crystallization, adsorption, filtration, sublimation, and drying. The

processes and product are usually tested during and after manufacture by dedicated instruments and on-site quality control laboratories to insure

safe operation and to assure that the product will meet required specifications. The products are packaged and delivered by many methods, including pipelines, tank-cars, and tank-trucks (for both solids and liquids), cylinders, drums, bottles, and boxes. Chemical companies often have a research and development laboratory for developing and testing products and processes. These facilities may include pilot plants, and such research facilities may be located at a site separate from the production plant. Companies in 21st century The chemical industry includes large, medium, and small companies that are located worldwide. Companies with sales of chemical products greater than $10 billion dollars in fiscal year 2005 are shown below. For some of these companies the chemical sales represented only a portion of their total sales; for example Exxon Mobils chemical sales were only 8.7 percent of their total sales. Chemical Industry is highly heterogeneous with following major sectors:

Petrochemicals Inorganic Chemicals Organic Chemicals Fine and specialties Bulk Drugs Agrochemicals Paints and Dyes

Foreign Trade India was a net importer of chemicals in early 1990s, but has now become a net exporter due to reduction in imports because of implementation of many large scale petrochemical plants like Reliance, ONGC etc. and also because of tremendous growth of exports in sectors like bulk drugs and pharmacy, pesticides, dyes and intermediates.

Company profile

HISTORY & GROWTH

The Travancore-Cochin Chemicals Ltd., popularly known as TCC was established in 1950. The idea of establishing the unit was conceived by M/s Sheshasayee Brothers the then managing agent of FACT. The venture was started as partnership concern in the name Travancore Mettur Chemicals with FACT and MCIC (Mettur Chemicals and Industrial Corporation) as partners. In 1951 the partnership was registered as a Public Limited Company, with the State Government contributing the major share of equity and the company was then named as TRAVANCORE-COCHIN CHEMICALS LTD. M/s Sheshasayee Brothers continued to be the managing agents for the next 10 years. Commercial production of Caustic Soda from the first plant of 20 tpd capacity was started in 1954 January. TCC is the first unit in India to manufacture Rayon grade Caustic Soda. Stages of Growth

1956 - A continuous Caustic Fusion Plant 20 tonnes per day for producing Caustic Soda flakes.

1958 - Chlorine Liquefaction Plant 1960 - Capacity enhanced to 30 tonnes per day further to 40 tonnes per day.

Established new plant for manufacture of Sodium Hydrosulphate 3 tpd capacity

1967 - 7 tpd Sodium Hydrosulphate

o o

60 tpd Caustic Fusion Plant 4 tpd Iron free Sodium Sulphate

1975 Added another 100 tpd Caustic Soda Membrane Unit thereby increased the production capacity 200 tpd own Water Treatment Plant.

(by 1988, many of the old unit were dismantled)

1997 - 100 TPD Caustic Soda manufacturing unit using Membarane technology capacity 125 tpd.

1998- New CCF Plant in place of existing 60 tpd. 2005 -Addition 25 tpd 2006 Addition 25 tpd

At present total installed capacity is 175 tpd Caustic Fusion plant for 100 tpd

Products:
Caustic soda lye Caustic soda flakes Liquid Chlorine Hydrochloric acid Sodium Hypochlorite

2.2. CORPORATE MISSION

TCC is committed to supply quality chemicals at competitive prices. Customer satisfaction, Concern for environment and Safety are our priorities. They intend to achieve Utmost level of conservation of all resources including energy Cost effectiveness in all operations Regular upgrading of technologies used in processing Compliance with laws and statutory regulation

Corporate Governing Body:

CHAIRMAN

MANAGING DIRECTER

DIRECTOR (OFFICIAL)

DIRECTOR (FINANCE)

NOMINEE DIRECTOR (KSIDC)

DIRECTOR

Quality Policy:

They are committed to enhance customer satisfaction by providing goods and services complying with continually improving Quality Management System.

Health and safety policy:

TCC is committed to provide every one of its employees and the related public an accident-free and healthy environment in its efforts to manufacture high quality products at competitive prices. The company will comply with all statutory requirements in this regard.

The company will provide a work environment in which identified hazards are controlled, if elimination is not feasible and will provide personal protective equipments wherever necessary.

Accident prevention is the direct responsibility of the Line Management and will be an important criterion for performance appraisal. Line Management will ensure that all safety measures are incorporated in the operating and maintenance procedures as well as in any process technology changes in the

plant/infrastructure.

Consideration of health and safety will be given proper weightage in selection and deployment of the personnel.

The company will ensure that health and safety aspects are given due consideration in decision regarding purchase of plant equipments, machinery and materials.

Every employee of the company shall perform his/her job adopting Safe and proper work methods and using appropriate Safety equipments understanding that their career advancement is linked with SAFE performance.

Contractors, sub-contract workers, transporters and visitors entering the factory shall be required to observe health and safety practices of the company in all their activities.

All contract jobs will be carried only through the laid down procedures with appropriate supervision.

The company will carry out safety audits, risk assessment studies, emergency mock drills, and periodic assessment of health of its employees as well as status place hazards be identified, appropriately evaluated and effectively controlled to achieve this goal. Whole hearted co-operation of all is solicited for this.

Energy Policy:

At the Travancore-Cochin Chemicals Udyogamandal are always committed to conservation of energy by all possible means

To accomplish our mission, they strive for:

Technological up gradation to reduce specific energy consumption Conducting energy conservation studies including energy audit and adopting the apt measures for conserving energy

Contacting other organizations and enriching our experiences on energy conservation

Using renewable energy sources to the extent possible Disseminating knowledge and information on energy conservation to our employees Low energy fuels also to be tried depending upon feasibility.

2.3. OBJECTIVES
Produce and market chemicals and caustic soda economically and in an environmentally sound manner. To maintain optimum level of efficiency and productivity and to secure optimum return on investment. To maximize profits from projects taken up. The continuously upgrade the quality of human resource of the company and to promote organization development. To improve the plants operational safety and to confirm statutory pollution controls standards. To ensure corporate growth by expansion and diversification. To care for community around.

2.4. Product Profile

Caustic Soda, Chlorine, Hydrochloric Acid form the back born of the chemical industry as it is important to the countrys economic growth.

Products and production capacity

Products Caustic Soda Lye Caustic Soda Flakes Liquid Chlorine Commercial Hydrochloric Acid Sodium Hypochlorite

Production in TPD 175(on 100% NaOH basis) 100 72 387

45

2.5. AWARDS WON AND ISO CERTIFICATION

Moving with the times, TCC keeps up its technology regularly updated and continue to be the competitive strength in the Chlor-alkali industry. With expanded plants and higher production capacity, TCC has come out to be the profitable public sector undertaking. Over the years we have achieved recognition and awards for the remarkable performance in the industry with regard to production, productivity, energy conservation and environmental protection. 1981 - Best Performance Award for Safety in the State from Directorate of Factories & Boilers, Government of Kerala

1988-89 - Best Pollution Control Award under group "Heavy Inorganic Industries" in Kerala, from Kerala State Pollution Control Board

1989 - Award for Best Performance in Safety in India under "Chemical Industries" group from National Safety Council.

1989-90 - Prize for Productivity from Kerala State Productivity Council. 1993 - Best Performance award for Energy Conservation in the State of Kerala under group "Chemical & Fertilizers above 3000 KVA" from Government of Kerala

1994-95 - Best Performance award for the Productivity in the State of Kerala under group "Large Industries" from Kerala State Productivity Council

1995-96 - Best Performance award for Productivity in the State of Kerala under group "Large Industries" from Kerala State Productivity Council. 1998 - Best performance award for Energy Conservation in the State of Kerala under group "Major Industries" from Energy Management Centre, Govt. of Kerala. 1998 - Performance award for Energy Conservation under group "Chlor-alkali Sector". Ministry of Power, Government of India. 2003 - Kerala State Energy Conservation Award (2000) in the category of Large Scale industry 2005 - National Energy Conservation Award "Chlor-alkali Sector"

Eco preserve: TCC is well aware of the responsibility that manufacturing industries bear towards environment. Conserving the resources of environment from pollution and preserving healthy living conditions are important concerns at TCC. TCCs commitment is to sustain the toxic-free environment observing statutory stipulations and legal regulation.

TCC believes in pollution prevention rather than pollution control. Their activities comprise awareness programs among the employees, customers, contractors and all those who are associated with them. Their endeavour is to minimize hazardous

emission and waste and to reduce the impact of the manufacturing activities. TCC aims to achieve zero effluent discharge by the end of this year.

2.6. COMPETITORS
Tamil Nadu Petro Products Ltd Belapur Industries Chemplast (Tuticorn) Andhra Sugars Ltd (Andhra pradesh) Atul Ltd (Ahmadabad) Chem Fab Alkalies Ltd (Pondichery) Kothari Petro Chemicals Ltd Sourashtra chemicals Ltd Grassim Industries Ltd Tata Chemicals Ltd(Gujarat) Sree Rayalaseema Alkalies and Allied Chemicals Ltd Indian Rayon and Industries Ltd Jayashree Chemicals Ltd Centuary Rayon Kothari Chemical Ltd Bilt Chemical Ltd Southern Petro Chemical Industries Gujarat Alkalies &Chemicals Ltd Sirpur Paper Mills.

2.7. CUSTOMERS
Hindustan Lever Limited-Cochin, Kerala. Indian Rare Earths Ltd-Udyogamandal, Kerala TamilNadu Paper Mills Limited Pugalur, Tamilnadu Pigments India Ltd. - Chalakudy, Kerala. Indian Oil Corporation. - Ernakulam, Kerala. Mysore paper Mills Ltd. - Bhadravathy, Karnataka Fertilizers & Chemicals Travancore Ltd. Ernakulam, Kerala Travancore Titanium Products Ltd.-Trivandrum, Kerala Kerala Minerals & Metals Ltd. - Kollam, Kerala. Hindustan Zinc Ltd - All Units Hindalco. Ltd -Ernakulam, Kerala. Hindustan Newsprint Limited- Kottayam, Kerala Kerala Chemicals & Proteins Ltd. Cochin, Kerala Hindustan Organic Chemicals Ltd- Ambalamugal, Kerala. Kerala Water Authority Trivandrum, Kerala. Hindustan Insecticides Ltd.-Udyogamandal, Kerala. Cochin Minerals & Rutiles Ltd.-Aluva, Kerala. National Thermal Power Corporation All Units

Binani Zinc Limited- Edayar, Kerala. Steel Authority of India Limited - All Units

INTRODUCTION The Travancore Cochin chemicals Ltd, popularly known as TCC Ltd, is a state owned public sector undertaking by the government of kerala.TCC is situated at Udyogmandal, Cochin, incorporated in 1951,TCC is the oldest chloralkali unit in the country and also is the only chlor-alkali unit in the state of kerala. The caustic soda was produced initially using mercury cell technology.TCC was also the first company in India to install the mercury cell plant for the manufacture of caustic soda.TCC is a chemical industry and manufactures of products like caustic soda ,chlorine, hydrochloric acid, soda bleach and related chemicals. With continues efforts for up gradation of technology and professional management the compass has a good track record of operation and healthy industrial relations.TCC is an also 9001:2000certified company. The company supports a large number of industrial units by supplying basic chemicals.TCC is conscious about its social responsibility and is dedicated to maintain the quality of products.

Chlor alkali industry - India

Salt is one of the oldest and most popular condiments. What is relatively unknown, however, is that salt is also the raw material for one of the most potentially profitable chemical industries in the country chlor alkali. This is possibly one of the few industries where supply far exceeds demand, making it a promising candidate for export. So it seems almost surreal that the chlor alkali industry faces a threat from the imported product. The chlor alkali industry in India is around 60 years old. It began with a modest capacity of a few thousand tonnes per annum and has since grown into a 2.24 million tonnes per annum capacity industry.

Jurassic technology

In all, there are 41 production units: 32 per cent of the countrys chlor alkali production is from 21 units that use the obsolete mercury cell technology and 68 per cent is from 19 units that use the latest membrane cell technology. There is even one unit that uses the archaic diaphragm technology, which accounts for 0.3 percent of production. With an installed capacity of 2.24 million tonnes per annum and demand of 1.4 million tonnes, it looks as though export of chlor alkali should be profitable. But countries that are in a similar situation of supply exceeding demand are dumping the product here, creating a glut here.

Attractive prospects

In the beginning of last decade, the countrys production capacity was 1.2 million tonnes per annum, and by the middle of the decade, a capacity of 1 million TPA was added. It is unfortunate that there was no corresponding rise in demand. The attractive prices prevailing then and the lack of imports encouraged SMEs to begin production at that point. But as sellers dictated prices, many consumers found it cheaper to set up their own plants, while others closed down, leading to a further fall in demand. Domestic prices collapsed and even world prices slid. This led to a downtrend in the chlor alkali industry. Yes, downtrends are common in all sectors, but they usually last between one and four years. This particular slide has lasted eight years, and theres no sign of the industry looking up.

Eclectic market

In the process of manufacturing chlor alkali, some by-products are assured: For each tonne of caustic soda, 860 kg of chlorine and 25 kg of hydrogen will be produced. Some amount of the chlorine produced is combined with hydrogen to make hydrochloric acid. Caustic soda, chlorine and hydrochloric acid are basic chemicals and are used by almost all industries. Major consumers Caustic Soda Chlorine Hydrochloric Acid Amino acids Pickling Ore benefaction Fertiliser refineries Hydrogen Hydrogenation

Rayon and pulp industries Paper and pulp Aluminium Textiles Soap and detergents Fertiliser PVC Chloro-organics Water disinfection Dye and pharma

Refineries Petrochemicals

Petrochemicals Dye and Pharma

Chlorine, hydrochloric acid and hydrogen cannot be hauled long distances. Manufacturing units abroad produce and use these products; that is, their plant economics is based on captive consumption. But caustic soda needs to be disposed of and can be transported. As India needs some amount of this product, it is dumped here. Caustic soda is imported from Iran, Saudi Arabia, the US, France and Japan. Now, Qatar is building a plant and intends to sell caustic soda to India. This will lead to a further imbalance in the domestic industry, which already over-produces.

What can be done

The only way the country can overcome these problems is to produce and sell at a lower price. This is just not possible. Consider this. Power, the major input (> 75 percent of production cost) costs US$236 per tonne, while the C&F price of caustic soda touched US$180 per tonne. What needs to be done is to scrap the outdated and expensive processes and switch to the newer and more efficient membrane cell technology. This will bring power costs down dramatically. From cutting costs to cutting prices is a small step but one the industry seems unwilling to take. This reluctance could prove self-defeating, as customers are likely to use the cheaper imports rather than local material. This will again prove more expensive to the SMEs, as they may not have the wherewithal to withstand price cuts unless the government steps in with some relief measures. To help the industry arrive at a more equitable cost structure, the Alkali Manufacturers Association has asked the government to impose preliminary duty to lead the industry to recovery. It is now up to the authorities to see that the output is used and not dumped in favour of cheaper foreign imports. Reference Web Back : site http://www.indiamarkets.com/imo/industry/chemicals