Katihar – Alcohal Industry

The Project envisages the setting up of an alcohol based chemicals plant to produce acetic acid and vinyl acetate monomer (VAM). Alcohol and alcohol based units constitute an important segment of the Indian Chemical Industry which plays a vital role in the country’s economy. Alcohol and alcohol based units account for 11-12 percent of the total capital employed in the manufacturing sector and employ 6 percent of the country’s factory workforce. The chemical industry produces value added products worth Rs. 16-17 billion per year of which an estimated Rs. 3,5-4 billion is accounted for by alcohol based units.The alcohol based chemical industry has been endeavouring to promote export of value added chemicals rather than molasses and alcohol. Organic chemicals produced in India have a strong market in the Middle East, Africa, Far East, European countries and neighbouring Pakistan. The export target for alcohol based units for 1996-97 is Rs. 3 billion and the growth rate for the Industry during the last few years has been around 30 percent. The capacity and product mix for the proposed project are as follows:Items Quantity
Ethyl Alcohol 19.2 million litres per year
Acetic Acid 10,000 tonnes per annum
Vinyl Acetate Monomer 10,000 tonnes per annumThe main uses of the products are briefly discussed below :Ethyl Alcohol : Used in the production of acetic anhydride,cellulose acetate, vinyl acetate and vinyl acetate monomer, plastics, pharmaceuticals, dyes and food additives.
VAM : Mainly used in the production ofpolyvinyl acetate, poly vinyl alcohol and poly vinyl chloride, and acetate resins.Market ScenarioThe projected demand figures for alcohol, acetic acid and vinyl acetate monomer are presented in table below.Projected Demand for Alcohol, Acetic Acid and VAM
Product 1995-96 1999-2000
Alcohol 1,400 Million Lit. 2,200 Million Lit.
Acetic Acid 200,000 tonnes 322,000 tonnes
VAM 35,000 tonnes 44,000 tonnesIn 1993-94, the production of acetic acid in
India was 98,000 tonnes. Alcohol production in the country during that year was 1,200 Million litres of which Bihar‘s contribution was 23.9 million litres. The projections contained in table 1 are conservative. However, if a 30 percent growth rate is assumed for the alcohol based industry, the demand projections will go up considerably.Raw MaterialsThe basic raw material for the production of alcohol based chemicals is molasses. The ethyl alcohol produced from molasses can be used for the production of acetic acid. One portion of the acetic acid can be used captively for the production of vinyl acetate monomer.InfrastructureFor the proposed project, the infrastructure requirements in terms of land and power are as follows:Items Quantity
Land 20 acres
Power 2MWProject CostThe cost of the proposed project is Rs. 1.5 billion. TopEthylene Di ChlorideProject ConceptThe project envisages the setting up of an alcohol based chemical plant to produce ethylene di-chloride.Alcohol and alcohol based units constitute an important segment of the Indian Chemical Industry which plays a vital role in the country’s economy. Alcohol and alcohol based units account for 11-12 percent of the total capital employed in the manufacturing sector and employ 6 per cent of the country’s factory workforce. The chemical industry produces value added products worth Rs. 16-17 billion per year of which an estimated Rs. 3.5-4 billion is accounted for by alcohol based units.
The alcohol based chemical industry has been endeavouring to promote export of value added chemicals rather than molasses and alcohol. Organic Chemicals produced in
India have a strong market in the Middle East, Africa, Far East, European countries and neighbouring Pakistan. The export target for alcohol based units for 1996-97 is Rs. 3 billion and the growth rate for the industry during the last few years has been around 30 percent.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: