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Chlorinated Heavy Normal Paraffin

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.

Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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