1

CASEIN

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 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

2

SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATIONS

1.1. General details Casein is a mixture of several proteins, which is present to the extent of 3 to 4% in the cow's milk. Casein is the principal protein in the skimmed milk (non-fat) portion of milk. After Casein is removed from the liquid portion of milk, whey remains. It can be denatured by treatment at 85 deg.C. for around 15 minutes. Component Alpha, beta, gamma and K Casein in the order of decreasing mobility at pH 7.0 The components can be distinguished by electrophoresis 1.2. Physical Properties of Casein Colour White cream Solubility (15% borax): 3 to 12 minutes (60 to 65 deg.C. Precipitation Lactic hydrochloric acid, Sulphuric acid Protein 83 to 93% Fat 0.9 to 2.0% Acidity (0.1N NaOH) 0.2 to 1.3 ml/gm) Lactose Trace -1.0% Moisture 8 to 12% Ash 0.4 to 2.5% pH (10% of slurry) 4.2 to 4.8% Bacteria Ca 2900 count/g Viscosity (14% solution) 100 to 250 rmp (210 Stormor) 1.3. Specification of Commercial Casein

3

Characteristics Grades of casein

Super fine Refine

D DD

Viscocity Yellowish Creamish Whitish Whitish Ash 4.5% 3.5% 2.0% 2.0% Fat 3.5% 2.5% 2.0% 1.5% Protein 75% 82% 88% 92% Moisture 10% 9% 8% 8.0% Mesh size 60/80 60/80 60/80 60/80 Viscocity in poise 10 14 18 20

4

SECTION II

PRODUCT APPLICATIONS 2.1. Application sector Sector of application

Nature of application

Food Used in different food preparations. Edible grade casein is used in a food industry as a stabiliser, moisture retainer etc. Some uses of edible casein are in coffee whitener, imitation powder, instant breakfast, icecream, protein hydrolysates, cheese etc,

Textile Used in textile industry for sizing clothes and yarn

Adhesive Finds application in the manufacture of casein glue, which is widely used as a binder, in leather, in match, in paper industries and in wood and laminated beams. Casein can be converted into an excellent glue by stirring it with distilled water and sodium bicarbonate for 5 to 6 hours in the presence of an antispetic, which can prevent the formation of mould.

Casein glue in match industry

Casein glue is used as a binder in the match industry. Earlier, animal glue was used to cater the needs of match industry and coated abrasive industries. Now, match industries prefer to use casein glue for the manufacture of damp proof matches. Casein glue is preferred over animal glue and technical gelatin, as latter might contain small percentage of chloride, which affect the property of damp proofness of the matches. Casein based glues are suitable for almost all adherants such as wood, paper etc.

Casein Glue in leather industry Casein glue is used in leather industry as a

5

dressing and finishing agent. The advantage of casein over gelatine for application in leather industry is that it is entirely precipitated by subsequent addition of alum, whereas most of the gelatine is lost in the back water.

2.2. Grades of Casein and application Casein can be produced in various grades for different applications by re precipitation from the skimmed milk with dilute Sulphuric acid, Hydrochloric acid or Lactic acid. Lactic Casein or Lactic acid Casein is the product of natural self souring, although this is normally promoted by inoculating skin milk lactobacillus. It is used in paints, paper coating, paper cones, adhesives, rubber chemicals, leather, textile auxilaries and pharmaceuticals. Rennet Casein is produced by Rennet process that is precipitated by the enzyme Rennet. Rennet Casein is Calcium Caseinate, which has a high ash content and is primarily used by the food industries and is not used in adhesives.

6

SECTION III

INDIAN MANUFACTURERS The major manufacturers of Casein in the country include the following. Such organisations produce various grades of Casein. * Amravati Enterprise 1/1, A.N. Mangalam Post Karipatti (Via) Salem - 636 016 * Clarion Casein Pvt. Ltd. Pallavasana, Mehsana-384 001,Gujarat. * Classik Casein 178/10, Chadreshwar Bhuwan, Sion Main Road, Sion (West), Mumbai-400 022. * Casein (India) F-25, Bhangwadi, Kalbadevi Road, Mumbai-400 002 * Dynamix Dairy Industries Ltd., Regd. Office : Conwood House, Yashodham Gen. A.K. Vaidya Marg, Goregaon (E), Mumbai-400 063 * Cepham Milk Specialities Ltd.

6 K.M. Derabassi-Barwala Road, Derabassi (Dist. Patiala) Punjab * Ganesh Dye Chem, 42, Easwaran Koil Street,

Chennai-600 033 * Stahl India Pvt. Ltd. 1-A, Sargunar Salai, Nagalkeni, Chromepet, Chennai-600 044 * Venus Casein Products 170, G.I.D.C. Estate, Mehsana-384 002

7

SECTION IV

IMPORT/EXPORT TRENDS 4.1. Imports 4.1.1. Present import level : Around 85 tonnes per annum 4.1.2. Countrywise Imports of Casein Derivatives Casein Glues Period April 2001 to March 2002

Country Quantity in Kgs

Australia 100 Belgium 240 France 480 Italy 35830 Japan 20 Korea RP 2520 Netherland 6000 New Zealand 19337 Poland 1665 Portugal 10620 Russia 231 Singapore 120 Spain 5110 UK 10 USA 558

4.1.3. Individual Imports of Casein binders Period 2002 Name of the Importers

Quantity in tonnes

Value in Rs. Country Date Port

Alpha Overseas Interna.

1.665 217358 Portugal 01.01.2002 to 10.01.2002.

Chennai

Farida Prime Tannery 7.500 547735 Italy 01.02.2002 to 11.02.2002

Mumbai

Farida Prime Tannery 2.000 148652 Italy 0.03.2002 to Chennai

Indian installed capacity for various grades of Casein

Around 9000 tonnes per annum.

8

07.03.2002 Tata International Ltd.,

2.990 315500 Italy 22.04.2002 to 30.04.2002

Mumbai

Arkay Leathers P.Ltd.,

2.040 228634 Italy 21.05.2002 to 29.05.2002

Chennai

Fapchem P.Ltd., 2.000 217659 Italy 06.06.2002 to 10.06.2002

Chennai

Arkay Leathers P.Ltd.,.

0.100 11574 Italy 16.07.2002 to 22.07.2002

Chennai

Haryana Leahter Chemls.

0.550 30139 Spain 23.08.2002 to 29.08.2002

Mumbai

Balaji Enterprises 2.389 336298 Portugal 02.09.2002 to 05.09.2002

Chennai

4.2. Exports 4.2.1. Present export level : Around 4000 tonnes per annum Countrywise Exports of Casein Derivatives Casein Glues Period April 2001 to March 2002

Country

Quantity in Kgs

Bangladesh 3000 Belgium 14000 Canada 65000 France 226051 German F REP 785600 Guinea 1000 Italy 7875 Japan 18575 Korea DP RP 9925 Nepal 300 Netherland 68000 Nigeria 200 Oman 3000 Poland 62000 Portugal 14930 Singapore 1500 Slovenia 151000 Spain 5000 U Arab Emts 200 USA 2551824

9

SECTION V

PRICE TRENDS Basic price Casein (Tech.) Rs.170 per kg. Casein (Refine grade) Rs.150 per kg. Casein (Superfine) Rs.130 per kg. Taxes and duties Extra as applicable

10

SECTION VI

INDIAN DEMAND

6.1. Present all India demand for Casein : 5000 tonnes per annum 6.2. Sectorwise demand

6.3. Growth rate in demand The estimated growth rate in demand is estimated to be around 10 to 11% per annum.

Paper industry10%

Food grade Casein 4%

Miscellaneous industry like

plywood, textile, photography, cosmetics,

matches and food18%

Leather industry68%

11

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS 7.1. General details Casein can be produced for different applications by precipitation from the skimmed milk with dilute Sulphuric acid, Hydrochloric acid or Lactic acid. Grades of Casein Casein is produced in various grades which include the following *. Hydrochloric acid casein *. Sulphuric acid casein *. Lactic acid casein *. Rennet casein * Fat free casein Casein From Skimmed Milk or Hydrochloric acid casein Casein is precipitated from the skimmed milk by electrolysing the milk at 120 deg.F. with nickel or carbon electrodes. The yellowish product formed is washed, steamed for 25 to 30 minutes in a wooden vat with 1% solution of soda. After heating, it is reprecipitated with dilute Hydrochloric acid. Casein from Soured Milk or Sulphuric acid casein Casein is a protein derived from soured milk by separating the solid curd from the whey. The curd is precipitated from the skimmed milk with dilute sulphuric acid, phosphoric acid, lactic acid, acetic acid or citric acid. The yellowish product formed is redissolved in alkali (sodium bicarbonated) and re-precipitated with dilute acetic acid. Lactic Casein or Lactic Acid casein Lactic Casein or Lactic acid Casein is the product of natural self souring, although this is normally promoted by inoculating skim milk with lactobacillus Rennet Casein Industrial Casein can also be manufactured by precipitating the skimmed milk using enzyme Rennet. Rennet Casein formed is Calcium Caseinate and has a high ash content.

12

Fat Free Casein A fat free Casein is obtained by mixing decreamed milk with alkali, warming and then removing the fat by centrifuging and then precipitating Casein the ordinary way with acid. Other process routes The other process routes generally developed for casein manufacture include the following. a) Sheffield continuous process b) Spellacy continuous process 7.2. Process details Industrial casein is produced from the skimmed milk containing around 3 to 4% of casein. Various stage in the manufacturing process include 1. Precipitation 2. Washing 3. De-watering 4. Grinding the curd 5. Drying and grinding 6. Packing the product. Industrial Casein would be produced from the skimmed milk containing around 3 to 4% of Casein . There are various process adopted for the manufacture of Casein from skimmed milk which are broadly indicated below: 1. The curd is precipitated from the skimmed milk with dilute sulphuric acid, phosphoric acid, lactic acid, acetic acid or citric acid. The yellowish product formed is redissolved in alkali (sodium bicarbonated) and re-precipitated with dilute acetic acid. 2. The Casein is precipitated by passing sulphur dioxide gas into milk warmed at 50 to 70 deg.C. The process is complete in a few minutes, the time taken being so short that there is no danger of inversion occuring. 3. A fat free Casein is obtained by mixing decreamed milk with alkali, warming and then removing the fat by centrifuging and then precipitating Casein the ordinary way with acid.

13

4. Casein is precipitated from the skimmed milk by electrolysing the milk at 120 deg.F. with nickel or carbon electrodes; the yellowish product formed is washed, steamed for 25 to 30 minutes in a wooden vat with 1% solution of soda. After heating, it is reprecipitated with dilute nitric acid. 5. Industrial Casein can also be manufactured by precipitating the skimmed milk using enzyme Rennet. Rennet Casein formed is Calcium Caseinate and has a high ash content. Source of technology * Central Food Technology Research Institute, Mysore Major plant and machinery suppliers Name of the equipment

Name of the company

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

14

Nutche filter

Aristo Engineers J-3, Vikas Udyog Nagar, Behind Kasturi Tiwer Phatak-Goddeo Road, Bhayander (E), Thane-401 105 A.V. Industrial Plastics Corp. 202/Him Shikhar, 1st Floor, Plot No.113 Sector 21, Near Apna Bazar Nerul, Navi Mumbai-400 706 Bifriends Engineering Works Klm College, Sant Narsi Mehta Marg, Parsiwadi, Ghatkopar (W), Mumbai-400 084

Wet Grinder K.B. Engineering B/58, Kiran Estate, Goregaon (W), Mumbai – 400 062

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

15

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

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

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

16

SECTION VIII

RAW MATERIAL REQUIREMENTS AND AVAILABILITY Raw material requirement Basis : One tonne of Casein Skimmed milk 28 KL Chemicals Miscellaneous consumption Utility Power : 60 HP for project of capacity 300 tonnes per annum. Raw material availability Milk Production in India In million tonnes

63.866.2 69.1

76.980.6

84.588.6

0

10

20

30

40

50

60

70

80

90

in m

illio

n to

nnes

1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002(Est.)

Year

17

SECTION IX

GLOBAL SCENARIO Global demand : 0.2 million tonnes per annum Growth rate in demand 4 to 5% per annum Important international manufacturers * Amalgamated Cooperative Marketers (Australia) Ltd., Victoria 3001 * United Mild Tasmania Ltd., Tasmania 7330 * Catorr, S.A. de C.V.,Mexico * Aabbit Adhesives Inc., USA * American Casein Company, USA * Borden Inc., USA * National Casein Co.,USA * Research Organics Inc.,USA * Ashland Distribution Co.,USA

18

SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS

Economic capacity : 300 tonnes per annum Project cost : Rs. 65 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs

1.1 Cost of land of one acre at Rs.5 .5 lakh per acre 5.5 1.2 Cost of levelling, laying internal roads/fencing and

compound wall

0.55

Subtotal 6.05 2. Building S.No. Description Cost

Rs.in lakhs

2.1 Factory building of area 420 sq.m. at Rs.3200/sq.m. 10.24 2.2 Non-factory building of area 50 sq.m.at Rs.4500/sq.m. 3.15 Subtotal 13.39 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs

3.1 Cost of basic plant and machinery 51 3.2 Instrumentation and control 3.83 3.3 Pipelines and valves 5.1 3.4 Structurals for erection 2.55 Subtotal 62.48 3.5 Octroi, excise duty, sales tax, etc.at 12%� 7.5 3.6 Packaging and insurance charges (2%) 1.25 3.7 Transportation charges (2%) 1.25 3.8 Machinery stores and spares (2%) 1.25 3.9 Foundation charges (2%) 1.25

3.10 Installation charges (2%) 1.25

19

Total cost of plant and Machinery 76.23 4. Technical know-how fees Rs.1.5 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs

5.1. Electrification 2.5 5.2. Steam boiler and auxillaries 3.5 5.3. Water storage tank, borewell etc. 0.8 5.4. Fuel storage tank 0.8 5.5. Laboratory equipment 0.8 5.6. Office machinery & equipment 0.8 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 0.8

5.8. Diesel generator 4.4 5.9. Effluent treatment 1.3 Total 15.7

6. Preliminary & Pre-operative expenses:

S.No. Description Cost

Rs.in lakhs

6.1. Preliminary expenses 0.36 6.2. Pre-operative expenses:- - 6.2.1 Establishment 0.36 6.2.2 Rent rates and taxes 0.36 6.2.3 Travelling expenses 1.3 6.2.4 Interest and commitment charges on borrowings 3.6 6.2.5 Insurance during construction period 1.3 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 7.28 7. Provision for contingency 7.5 8. Working capital margin 14.56 9. Total project cost Rs. 142.21 1akhs 10. Means of Finance Promoter's contribution Rs.57 lakhs Term loan from financing institutions Rs.85 lakhs

20

Total project cost Rs.142 lakhs 11. Financial statements Cost of production A Variable cost

Rs. in lakhs

Raw material and utilities 278.7 Spares and maintenance 4.6 Selling expenses 21 Total variable cost (A)

304.3

B Fixed cost

Salaries and wages 15 Interest on term loan and working capital loan 23.16 Depreciation 8.35 Administrative expenses 12.6 Total fixed cost (B)

59.11

C. Total cost of production (A+B)

363.41

D. Selling price Rs.140/- per kg. (in Rupees)

140

E. Annual sales turnover

420

F. Net profit before tax (E -C)

56.59

G. Breakeven point in %

51

21

SECTION XI

SWOT ANALYSIS Strength Availability of raw material in adequate quantity and

growing demand

Weakness Lack of global competitiveness in terms of product range

Opportunity Scope to develop market and R&D requirements

Threat

Import from sophisticated units from abroad

22

SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATIONS

The import of Casein for specific applications is likely to continue, in view of the growing demand and the need for high quality specifications. Casein is an important product and India has specific advantages , since India has emerged as large producer of milk in the world. Indian casein industry is required to put forth more research and development efforts to optimise the product quality, process parameters and produce the product in more number of grades to meet specific applications. Strong case exists to create additional capacity for Casein in the country