Welcome to Technopreneur

Product Code	:	36401
Quality and Standards	:	There is no laid down specification of BIS for this product. It is produced as per customer's specification.
Production Capacity	:	1. Chlorinated Heavy Normal Paraffin-1000 MT/Year 2. Hydrochloric Acid-1200 MT/Year
Uploaded on	:	January 2008

Introduction

Chlorinated Heavy Normal paraffin is a replacement of chlorinated paraffin wax. The method of manufacturing of both the products is the same and so is the end-use. Apart from above the best part of Chlorinated Heavy Normal Paraffin is that in this product maximum Chlorination which can be achieved is 70% while in chlorinated paraffin wax it is 60%. It is used as secondary plasticiser for Polyvinyl Chloride resins, plasticiser extender in synthetic rubber, Nitrocellulose, polystyrene etc. It is also used for impregnating textile and fabrics of all kinds as a flame retardant. It also finds application in paint industry for manufacturing of fire proof paints. It is widely used in foundry industry.

Market Potential

Chlorinated Heavy Normal Paraffin is mainly used in PVC industry as plasticiser, extreme pressure lubricant, additive in metal working industry and as fire retardant Chlorinated heavy normal Paraffin is a chemically inert plasticiser and in paint formulation where hard resins are used to make film more flexible that eliminates film embitterment. In plastics it is used as a secondary plasticiser because of high fire retarding efficiency, Good heat light stability, high resin compatibility, and lack of odour and low toxicity.

It is also widely used as lubricant in metal working industry to provide both extreme pressure activity and as a boundary lubricant.

It is also used as flame retardant in fabrics and paints industry. Presently 30-35 Small Scale Units in the country manufacture it and the total annual production is around 70,000 MT. The demand of the product is growing continuously at the rate of 6-7% per year.

Basis and Presumptions

1. The unit will work on three-shift basis.

2. The unit will achieve its full production in three year.

3. Twelve persons are required to operate the plant.

4. Workers salaries are considered as per Government norms.

5. Interest rate on capital investment is calculated on 14% basis.

6. Margin Money is 25%.

7. The technology will continue for another 10 years.

8. Depreciation on plant and machinery is considered @ 15%

Implementation Schedule

To implement the project a minimum one year period is required. First three months are required to get various approvals from Government Authorities and in preparation of project report and in placing order for the equipments and in erection of the unit 10 months are required. The remaining two months are required for trials and commissioning of the units.

Technical Aspects
Process of Manufacture

Chlorinated heavy Normal Paraffin is produced by passing chlorine in heavy normal Paraffin at specific temperature. The Hydrogen chloride gas evolved during reaction is absorbed in Hydrochloric acid absorption column to produce 32% Hydrochloric acid. The unabsorbed gas from HCL absorption column is then passed through packed high density Polythene absorption column where milk of lime solution is circulated. All unabsorbed gases are absorbed here. The total time required for 70% chlorination is around 26-28 hours. After achieving desired chlorination compressed air passed through the chlorinated mass to remove trapped HCL and chlorine gas from the product. Finally 1-2 to 1.5% epoxidised soyabean oil is added as stabilizer before packing the product.

Pollution Control

In this industry no liquid effluent is generated, but to take care of floor washing and various washing a small effluent treatment plant consisting of neutralizer and sand filter is required in chlorinated heavy Normal Paraffin industry HCL gas absorption column to produce hydrochloric acid to avoid even small amount of HCL gas comes out from the absorption column to avoid any pollution, packed HDPE absorption column is kept and milk of lime solution is circulated. It takes care of unabsorbed HCL gas and produces calcium chloride, which is after concentration marketed as one of the by-products.

Financial Aspects
A. Fixed Capital

(i)	Land and Building			Value (Rs.)
1.	Land	500 Sq.m.	4000	1400000
2.	Factory shed	200 Sq.m.	5000	1000000
3.	Admn. Block	50 Sq.m.	7000	350000
	Total			2750000

(ii) Plant and Machinery

Sl. No.	Particulars	Qty.	Rate (Rs.)	Amount (Rs.)
1.	M.S. lead Bonded reactor Capacity 4 M.T.	1	420000	420000
2.	HCL gas absorption column 9 ft. standard	1	260000	260000
3.	HDPE packed absorption Column	1	130000	130000
4.	Milk of Lime storage tank HDPE-3000 Lts.	1	30000	30000
5.	Heavy Normal Paraffin storage tank 20 KL	1	200000	200000
6.	Chlorinated HNP aeration tank cap. 6000 lits. MS/FRP	1	140000	140000
7.	M.S H.N-Heating tank with heating element 4KL	1	70000	70000
8.	Chlorinated HNP storage tank 20 KL FRP.	1	140000	140000
9.	Hydrochloric acid storage tank-30 KL FRP	1	20000	20000
10.	Rota meter	2	15000	30000
11.	Cooling Tower 100 T.R		160000	160000
12.	DG-Set	1	100000	100000
13.	Chlorine Storage yard with chain pulling arrangement	1	130000	130000
14.	S.S concentration vessel cap 7000 ltr.	1	130000	130000
15.	Firebrick lined furnace for dehydrating calcium chloride.	1	60000	60000
16.	Pipe Line and value	1	70000	70000
17.	Air Compressor with 7.5 H.P Motor		50000	50000
18.	Electricity, erection and commissioning		120000	120000
19.	Effluent Treatment Plant		100000	100000
	Total			2360000

(iii)	Fixed Capital Investment	(Rs.)
1.	Land and Building	2750000
2.	Plant and machinery	2360000
	Total	5110000

(iv) Raw Material (per month)

Sl. No.	Particulars	Qty.	Rate (Rs.)	Amount (Rs.)
1.	Heavy Normal Paraffin	38 M.T	37000	1406000
2.	Chlorine	133 M.T	18000	2394000
3.	Lime	2 M.T.	5000	10000
4.	Stabilizer	1.2 M.T.	100000	120000
	Total			3930000

(v)	Utilities (per month)	(Rs.)
1.	Electricity	70000
2.	Water	2000
	Total	72000

(vi) Staff and Labour (per month)

Sl. No.	Particulars	No.	Rate (Rs.)	Amount (Rs.)
1.	Manager	1	15000	15000
2.	Chemist	1	10000	10000
3.	Skilled workers	4	4500	18000
4.	Unskilled workers	4	3000	12000
5.	Clerk-cum-Accountant	1	5000	5000
6.	Sales officer	1	10000	10000
7.	Watchman	2	3000	6000
	Total			76000
	Perks @ 22%			16720
	Total			92720

(vii)	Other Contingent Expenses (per month)	(Rs.)
1.	Postage and Stationery	5000
2.	Transport	20000
3.	Telephone	6000
4.	Maintenance	12000
5.	Insurance	5000
6.	Miscellaneous expenses Including packing	15000
	Total	63000

B. Working Capital (per month)

1.	Raw material	3930000
2.	Utility	72000
3.	Staff and labour	92720
4.	Other expenses	63000
	Total	4157720

Working Capital for 2 Months

8315440

C. Total Capital Investment

1.	Fixed capital	5110000
2.	Working capital	8315440
	Total	13425440

(1)	Cost of Production	(Rs.)
1.	Total recurring cost	49892640
2.	Depreciation on plant and machinery @15%	354000
3.	Depreciation on building @ 5%	67500
4.	Interest on total capital investment @14%	1879562
	Total	52193702

2)	Total Sales	(Rs.)
1.	Chlorinated heavy normal paraffin 1000MT @ Rs. 56000/ MT	56000000
2.	Hydrochloric Acid 1200 MT @ Rs. 1250/MT	1500000
	Total	57500000

(3)	Profit (per annum)	(Rs.)
1.	Total sales	57500000
2.	Cost of production	52193702
	Total Profit 1-2	5306298

(4) Profit on Sale
		530629800
	=	————————
		57500000

	=	9.23

(5) Profit on Total Capital Investment
		530629800
	=	————————
		13425440

	=	39.52

(6)	Break-even Point	(Rs.)
1.	Depreciation on Plant and machinery	354000
2.	Interest on total capital investment	1879562
3.	Depreciation on building	67500
4.	40% of the salary and wages	445056
5.	40% of other expenditure	302400
	Fixed Cost	3048518

B.E.P.
		Fixed cost × 100
	=	————————
		Fixed cost + profit

		304851800
	=	———————————
		8354816
	=	36.49

Addresses of Raw Material Suppliers

1. M/s. Indian Petrochemicals Ltd.
Nandesari, Vadodara,
Gujarat.

2. M/s. Ruchi Finance Ltd.
Reliance Distributor,
505, Dalmal House,
Nariman Point,
Mumbai-400021.

3. M/s. Hukamchand Jute Mill
Amlai, Distt. Shahadol,
M.P.

4. M/s. Grasim
Gram Nagala Nagda,
Distt. Ujjain,
M.P.

5. M/s. Shri Ram Food and Fertilizer Inds.
(C.M.D Division),
Shivaji Marg,
Post Box No. 6219,
New Delhi.

Addresses of Plant and Machinery Suppliers

1. M/s. Techno Chem. Engineers
69, Industrial Area Ratlam,
M. P.

2. M/s. Chem Metal Engineering Iraniwadi
4th Road,
Opp. Sardar Compound,
Beside Dr. Bhadesh Shah,
Kandivli (W),
Mumbai.

3. M/s. Garg Lab Glass Industries
19, Anand Bhawan,
2nd Floor, 27,
Babu Genu Road,
Princess Street,
Mumbai-400002.

4. M/s. Keystone Air System
B/4, Shastri Stadium,
Babunagar,
Ahmedabad.