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Focus: Make in IndSpec

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South 201510-12, December 2015

Chennai, IndiaChemTECHWORLD EXPO

Gujarat 201621-23, January 2016

Ahmedabad, India


4/110August 2013 • 3Chemical Engineering World


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ContentsEW

6 • January 2015 Chemical Engineering Wor

Printed and published by Mr Maulik Jasubhai Shah on behalf ofJasubhai Media Private Limited, 26, Maker Chamber VI, Nariman Point, Mumbai 400 021

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published from 3rd Floor, Taj Building, 210, Dr. D N Road, Fort, Mumbai 400 001Editor: Ms Mittravinda Ranjan, 26, Maker Chamber VI, Nariman Point, Mumbai 400 021

CHEMICAL ENGINEERING WORLDRNI REGISTRATION NO. 11403/66

Chairman Jasu ShahPublisher & Printer Maulik Jasubhai ShahChief Executive Officer Hemant Shetty

EDITORIALEditor Mittravinda Ranjan ([email protected])Editorial Advisory Board D P Misra, N G Ashar, Prof. M C DwivediContributing Editors P V Satyanarayana, Dr S R Srinivasan, R B Darji, R P SharmaSub Editor Harshal Y Desai ([email protected]) Bernard Rapose ([email protected])

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7/110 October 2013 • 11Chemical Engineering World


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ContentsEW

8 • January 2015 Chemical Engineering Wor

NEWS ►

Industry News/ 10

Technology News / 18

NEWS FEATURES ►

Prime Time to Invest in Talent & Technology: Kallada / 24

FEATURES ►

‘Make in India’ Promises a Brighter India, But… / 28

– Jason Cooper, Managing Director, Linde Engineering

India Pvt Ltd

Can ‘Make in India’ Pave Way for Solar Industry? / 36 – Hi tesh Doshi, Chai rman & Managing Director,

WAAREE Group

Indian Pumps & Valves Industry: Time to Go Global /40

– Shr ipad Ranade, Sr Principal, & Yogesh Shivani,

Assoc iate Consultant, TSMG.

Complementing ‘Make in India’ / 44

– Haresh K Sippy, Managing Director, TEMA India Limi ted

PRODUCTS ► / 99

EVENTS ► / 106

PROJECT UPDATE ► /107

BACK OF BOOK ►

Ad Index / 109

Book Shelf / 111

Interview/ 112

“From Corrective Actions to Proactive Approach

–Dr Samir Degan, MD, Osnar Chemical Pvt Ltd and

Chairman, NACE International Gateway India

Section (NIGIS)

CHEMTECH SPECIAL ►

EDITOR’S NOTE/ 50

Urbanisation, Young Force, & Digital Capability Will Drive

‘Make in India’ Campaign: Rabindranath Burman / 52

Fluid Controls Targets Growth through People and

Process / 56

With Make-In-India’s Launch, Old is the New NEW!:

Kevin M Shah / 60

Chem Process: ‘The Right Solution to Each Client’ / 64

Raj Process Equipments: Confident of Sustainable

Growth / 68

Gopani Product: Offering “World’s Top Filtration

Products” / 70

Advance Valves: A Distinct and Significant

Manufacturer / 72

RCF: Committed to Indian Farmers / 76

Transflow Asia / 78

Super Industrial Lining Pvt Ltd / 80

Everest Blowers Pvt Ltd / 82

DIP-FLON Engineering & CO / 84

Safety, Productivity & Visual Turnkey Solutions: BRADY

Company India Pvt Ltd / 86

G R Engineering Pvt Ltd / 88

Long Live Water Heaters (Outokumpu) / 90

The New Ferritic on the Block (Outokumpu) / 92

Technological Advancements are Backbone of SS

Techno: Shripad Khatav / 94

Dipesh Engineering Works Targets 30% Growth / 96

VOL. 50 | ISSUE 1 | JANUARY 2015 | MUMBAI | ` 150


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Industry NewsCEW

10 • January 2015Chemical Engineering World

Mum bai , Ind ia : Rel iance Indus t r ies

Limited (RIL), which indicated its inte ntion

to expand its petrochemicals business

with an investment of about USD16 billion

last year, has appointed Vipul S hah as the

Chief Operating Officer (COO) to head its

petroleum business.

Shah is also the Chairman of Central

Adv i s o r y Boa r d ( C AB) fo r Spec ia l t y C hemic a l W or ld

Expo 2015.

Sudhir Shenoy will be the new CEO of

Dow Chemical Internati onal Pvt Ltd (Dow

India).

Shenoy s tar ted h is journey wi th Dow

i n 1 9 9 7 . I n m i d 2 0 1 2 , S u d h i r w a snamed General Manager for the Home,

Persona l & Indus t r ia l Care bus iness

in As ia Pac i f i c and i n 2013 , he mov ed to Shangha i ,

China as the Commercial Director for Dow Polyurethane,

responsible for regional profit and loss, business strategy and

organisational effectiveness.

Vipul Shah Joins RIL as COO, PetrochemicalDivision; Shenoy New CEO for Dow India

Gujarat to Form Joint Working Group

Ahmedabad, India: The state of Gujarat, where already more

than 50 per cent of total chemical production takes place, is now

willing to further fast track projects related to chemical industry

within the state. The Chief Minister of the state, Anandiben Patel

has met Union Minister for Chemical and Fertilizer to discuss

various projects related to the state in the fields of chemicals,

fertilisers and pharmaceuticals. The state has now decided to form

a joint working group, which will actively monitor the projects in

the pipeline.

The government has also decided to develop a ful l- f ledged

campus for the National Institute of Pharmaceutical Education& Research (NIPER) at Ahmedabad, to further develop the

Petroleum, Chemicals and Petrochemicals Investments Region

(PCPIR)/SEZ at Dahej.

Currently, Gujarat is the only state, where the PCPIR is functioning.

According to Kumar, further steps are to be taken to expand the

industry in t his sector. It can also be explored for setting up of an

exclusive tech park for medical devices. The issue of setting up

of fertiliser plants in Gujarat under New Investment Policy of the

ministry was also discussed during the meeting.

P l u s s P o l y m e r s O r g a n i s e s E - w a s t eManagement Programme

Gurgaon, India: Pluss Polymers and Advit Foundation, in order

to spread awareness about the importance of waste management,

organised an E-waste Management Programme last month in

Mount Abu School in New Delhi. According to Samit Jain, Managing

Director, Pluss Polymers, the company is working with several

schools and corporates across National Capital Region (NCR) to

educate people on e-waste management.

SPIC, MFL to Re-start Urea Production

`175-crore order for VA Tech’s Filipino Arm

TCL Plans Expansion of Nutrition Business

Chennai, India: The Philippine subsidiary of VA Tech Wabag has

bagged a `175-crore order to set up a sewage treatment plant at

Valenzuela, the Philippines. The company informed the BSE that

it would design and build 60 million litres a day sewage treatment

plant for Maynilad Water Services. Wabag will maintain the facility

for one year as par t of performance assurance. The project is funded

by the World Bank. The Philippines has emerged a major market for

the Chennai-based multinational water and wastewater treatment

company, which has executed three projects in Bagbag, Tatalon

and Dona Imelda and is implementing two large projects at Illugin,

where it is setting up a 100 mld plant, and Putatan.

Chennai, India: According to the Union Ministry of Chemicals

and Fertilizers, Southern Petrochemical Industries Corporation

Ltd (SPIC) and Madras Fertilizers Ltd (MFL) are now allowed

to produce urea using feedstock naphtha for a limited period. A

regulatory filing reads, “The Ministry had informed they would

be allowed to produce urea using naphtha for 100 days from the

date of the notification, which is January 7, 2015… The companyhas, therefore, commenced starting up activities.” Earlier, Tamil

Nadu Chief Minister O Panneerselvam had written a letter

to Prime Minister Narendra Modi and sought subsidy for two

fertiliser units.

Vipul Shah, COO,

Petrochemical

Division, RIL

Mumbai, India: Tata Chemicals is planning to expand its nutritionand wellness business by using latest innovations and technologies.

Company’s President, Arup Basu, who is also on the Central

Advisory Board for Speciality Chemical World Expo 2015, said that

the company is keen to grow the pulses business as the consumer

products business is an area of interest for it. According to Basu,

the business of nutrition and wellness is not like a chemical plant

as there are different set of partners and company needs to involve

farmers and consumers. He also stressed on the relationship with

the government and said that it is also important as they are the

regulators who matter the most to get a nod for any new product.

Sudhir Shenoy, CEO,

Dow India


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Industry NewsCEW


RIL, Mitsui to Ship Liquefied Ethane to India

Mumbai, India: Reliance Industries Limited (RIL) and Mitsui OSK

Lines Ltd have agreed to transport ethane from North America to

India. Both the companies have been reported to sign the agreement

for the same. According to the MOU signed by RIL and Mitsui, the

latter will supervise the construction of six very large ethane carriers

(VLECs), ordered recently by RIL from South Korea’s Samsung

Heavy Industries. The VLECs are being specifically built by SamsungHeavy Industries Co Ltd and are expected to be delivered in the

last quarter of 2016 and will enter into ser vice thereafter. RIL had

earlier reported that it is implementing a project to source 1.5

million tonnes per annum of ethane from the US to feed its crackers

in India. The company intends to save about USD 450 million per

annum by importing 1.5 million tonnes of ethane from the US for

its petrochemical plant, said a research report.

Go v t Re c e iv e s 1 2 Pro p o s a ls to In c re a s eDomestic Output

` 9,000-crore Fertiliser Complex to be Set-upin Odisha

New Delhi, India: A joint venture agreements to set up an integrated

coal gasification-cum-fertiliser and ammonium nitrate complex in

Talcher, Odisha, at an estimated investment of ` 9,000 crore has

been signed by GAIL (India), Coal India, Rashtriya Chemicals and

Fertilisers (RCF) and Fertiliser Corporation of India. According to

Piyush Goyal, Minister of State (Independent Charge) Power, Coal

and New and Renewable Energy, the units will start by March 31,

2019. Two different joint ventures - GAIL, Coal Gas (India) Ltd and

Talcher Chemicals and Fertiliser Ltd have been established, which

will be led by GAIL and RCF, respectively. GAIL will set up the

upstream coal gasification and gas purification section for producing

ammonia syngas for the unit, which will require an investment of

` 3,000 crore. And the second joint venture is responsible for setting

up the ammonia-urea and nitric acid-ammonium nitrate plants.

New Delhi, India: The Fertiliser Ministry has received 12 proposals

from the fertiliser companies to increase domestic output by

setting up new plants and scali ng up capacity of existing facilities.

However, it is likely to approve maximum 5 of the m. The Centre inApril 2010 had decontrolled the Phosphatic and Potassic (P&K)

fertilisers, li ke DAP and MOP, by giving free dom to manufacturers

to fix prices. At present, the annual domestic demand of urea is

around 30 million tonnes, while the production is around 22 million

tonnes. The gap is met through imports. Eight private companies

including Zuari Agro Chemicals, Indo-Gulf Fertilisers, Chambal

Fertilisers, Bharat Coal Chemicals and Nagarjuna Fertilizers

and Chemicals Ltd have submitted proposals. Also, four PSUs

- Rashtriya Chemicals and Fertilizers (RCF), GNFC, GSFC and

FACT - have applied Under the New Investment Policy.

Fertiliser Ministry Asks for Coal Block Allotmentto Urea Plants

New Delhi, India: The Coal ministry has been asked to allot some

mines to fertiliser production plants when the blocks are up for

allocation. The Fertiliser Ministry has written to the Coal Ministry

about the same. In all about 101 mines i ncluding 65 through auction

would be freshly allocated in the first phase. The state owned

companies would be a llocated almost 36 blocks. There has been anincrease in the number of coal mines to be allocated or auctioned in

the first phase from 92 to 101. The possibility of making use of coal

gasification as alternative mode of feedstock for urea production is

also being explored by the Fertiliser ministry.

Dürr Right on Track in the Asian Market

Bietigheim-Bissingen, Germany: The mechanical and plant

eng ineer ing f i rm, Dür r has recent ly dep loyed i ts h i - tech

EcoDryScrubber solution in the highly competitive Japanesemarket. The EcoDryScrubber from Dürr is an environmentally-

friendly and reliable solution that leverages dry separation to

capture and filter out overspray that occurs during painting. A

leader in paint systems, Dürr has equipped 80 per cent of its

paint shops with the innovative dry separation technology since

the EcoDryScr ubber was introduced. One of Japan’s leading train

operators with its fleet of hi-speed locomotives has deployed the

EcoDryScrubber technology in its new paint shop for aluminium

panels on the Shinkansen high-speed train. The system is

scheduled to enter service in Hamamatsu in summer 2015.

Euro 4 Billion Rhenus Launches Second Warehouse

Mumbai, India: Rhenus Logistics India Pvt Ltd, the Indian arm of

the globally valued Euro 4 Billion Rhenus Group, opened of second

warehouse near Chennai, spread in an area of 55,000 sq ft. With

opening of this warehouse, Rhenus now has two multi-user facilities,

with about 1 lac sq ft of warehousing space near Chennai. This new

warehouse will exclusively cater to the chemical sector and boost the

industry in Tamil Nadu. Due to the risk involved in handling and storing

of Chemical products, the industry requires THE highest level of

safety. Now more companies can take benefit of the facility, as Rhenus

is among the few logistics players in India which adhere to stringent

environment and safety standards. This warehouse is a state of the

art facility and fully enabled with latest technologies, facilitating the

company to handle chemical products with the highest level of efficiency

and safety. The warehouse is endowed with modern equipment’s and

in-house warehouse management software ‘Rhenus WMS’ that takes

care of inventory traceability and transactions. It has a capacity of 6000

Pallet Positions (PP) with further scalability options, efficient Reach

Trucks with the lifting capacity of G+7 racking systems for 1100 kgs

and Forklifts for Floor management. It has prospects of fulfilling both

JIT and Milk run concepts.


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Industry NewsCEW


ALTANA Acquires Premiata and Overlake

Cathay Investments to Buy Euroresins from DSM

Heerlen, Netherlands: Royal DSM has announced that it has

reached agreement with Cathay Investments for the sale of

Euroresins. Subject to customary approvals and notifications,

the transaction is expected to close in Q1 2015. Euroresins is

a distributor of products to the composite resins industry with

activities in nine countries in Europe, including the United Kingdom,

Italy and France. Euroresins realises sales of ap proximately Euro

90 million with around 70 employees. All employees - on the

closing date - will be transfered to the new owner. The sale of

Euroresins is in line with the strategic actions DSM is pursuing

for Composite Resins, as announced in November 2014. Cathay

Investments is the UK hol ding company for a group of compani es

engaged in chemical distribution and trading.

Mosaic Awards KBR with FEED Contract forAmmonia Plant

Houston, USA: KBR Inc has been awarded the license and

engineering contracts to perform front end engineering and

design for a potential expansion of Mosaic’s Ammonia Pl ant in St.

James, Louisiana. KBR’s ‘lean FEED’ approach will debottleneckthe plant and increase Mosaic’s ammonia production capacity by

20 per cent at their plant located on the banks of the Mississippi.

KBR’s proprietary ammonia technology will be utilised to revamp

and expand the or ig inal KBR designed plant. Addi t ional ly ,

KBR will provide the basic engineering design and the FEED

requirements necessary to produce a final estimate prior to project

approval.“This is a significant win for KBR and we are pleased to

be able to support Mosaic with both our leading technology and

our technical and project delivery expertise,” said Stuart Bradie,

President and CEO, KBR.

Mitsui & SKC Form JV for Polyurethane Biz

Tokyo, Japan: Mitsui Chemicals, Inc, and SKC Co, Ltd,announced the signing of a joint venture agreement to consolidate

the polyurethane material businesses of both companies. MCI

and SKC target to form the new joint venture company (JVC)

by April 1, 2015 subject to completion of necessary procedures,

such as the obtaining of relevant approvals and licenses. The

JVC is headed to be a global comprehensive manufacturer of

polyurethane materials which provides value for customers

and targets sales of USD 2.0 billion per year around 2020.

Basic strategies of the JVC are satisfy customer needs in

growing markets, explore new businesses globally and improve

profitability. The JVC will fully utilise the global networks of MCI

and SKC covering Far East Asia, China, ASEAN, Europe, andthe Americas based on close relationships with customers and

the provision of quick and efficient technical services.

São Paulo, Brazil: The specialty chemicals

group, ALTANA has acquired two companies inBrazil. As a result, the ACTEGA division now

has its own sites in South America’s largest

country. Both of the acquired companies are

owner-operated and headquartered in the federal

state of São Paulo. Premiata, which operates two

facilities under the name of Premiata Tintas and

Premiata Especialidades Químicas, specialises,

respectively, in printing inks and coatings for the

packaging industry with 140 employees. Overlake is an overprint

varnishes specialist with 70 employees at one site. “Through these

acquisitions we are systematically expanding our business in the

growing Brazilian market,” explains Martin Babilas, Member of theManagement Board, ALTANA AG.

The ACTEGA division’s entire Brazilian operations will be concentrated

in the new ACTEGA do Brasil company with immediate effect. “Taking

over Premiata and Overlake means we can significantly expand our

portfolio of solutions particularly for the Brazilian packaging industry.

I am convinced that our many years of expertise in printing inks and

overprint varnishes combined with our new production facilities will

swiftly make ACTEGA the preferred supplier in Brazil,” summarises

Dr Roland Peter, ACTEGA Division President.

Martin B abilas,

Member of the

Management

Board, ALTANA AG

Sasol’s Ethane Cracker Complex in US is Complete

Johannesburg, South Africa: Sasol Limited

(Sasol) announced the completi on of a USD

4 billion credit facility for its ethane cracker

and derivatives at its existing site in Lake

Charles, Louisiana.

“Securing this financing facility is anotherkey mi les tone in advanc ing a de f in ing

project for the company. The support from

a large number of international financial

institutions is a testament to Sasol’s strong standing within the

global fina ncial markets,” said Paul Victor, Acting Chie f Financial

Officer, Sasol Limited. A syndicate of 18 international banks

and other financial institutions are l enders for the credit facility.

In October , Sasol announced i ts f inal investment dec is ion

relating to a USD 8.9 bil l ion petrochemical complex, which

consists of an ethane cracker that wil l produce 1.5 mil l ion

tons of ethylene annually. The complex will also comprise sixchemical manufacturing plants, enabling infrastructure and utility

improvements.

The remainder of the funds required for construction will be

raised in a phased manner from a variety of potential sources,

including surpl us cash available in the group.

Paul Victor, Acting

Chief Financial

Officer, Sasol

Limited.


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Dalal Engineering Pvt. Ltd.Kavesar, Thane-Ghodbunder Road, Thane 400 615, Maharashtra, India

Tel: 91-22-25976201/02/03/04• Fax: 91-22-25976207

E-Mail: [email protected]• Website: www.dalalengineering.com

• Dyestuff – Homogenization & pre-grinding of vat

dyes before sand milling

• Pigments – Faster Size reduction & enhanced rate of

reaction

• Herbal products – Reduction in process time during

solvent extraction

• Spices – Intense mixing for rapid & effective

extraction

• Rubber – Rapid Dissolution of rubber in solvent

• Polymer – Instant crushing of precipitated mass &

size reduction

• Detergent – De-lumping of slurry to prevent choking

of spray dryer nozzles

Rapid Dissolution, Homogenizing, Crushing, Maceration SUPERTOR

at one go

Liquids & SlurryMix,Grind,

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details

Supertor is useful in the following industries:

• Silica – De-agglomeration of silica slurry before

drying

• Pharmaceuticals – Efcient Dissolution of soluble

impurities during washing

• Solids Dissolution – Reduction of solids dissolution

time in mixing, reaction, etc.

• Paper – Separation of Lignin from waste black liquor

• CMC – Processing & Homogenising of CMC powder

in liquid• Tea – Recovery of Caffeine from spent tea


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Industry NewsCEW


P E T R O N A S C h o o s e s L y o n d e l l B a s e l l ’ sPolypropylene Technologies

Honeywell Starts Production of Low-GWP

Rotterdam, Netherlands: PETRONAS Refinery and Petrochemical

Corporation (PRPC) has selected the LyondellBasell Spherizone

and Spher ipo l po lypropy lene process techno log ies . The

technologies will be used for a 900 KTA polypropylene (PP) unit

to be constructed in their Refinery and Petrochemical Integrated

Development (RAPID) complex in Pengerang, Johor, Malaysia.

D u tuk N u r I s k anda r A Samad , D epu ty P r o jec t D i r ec to r

(Petrochemical) for project RAPID at P RPC stated, “Our selection

of both the Spherizone and Spheripol process technologies

will provide PETRONAS with a wide range of premium quality

and differentiated PP products highly suited to the needs of

international markets.” Key features of the Spher izone technology

inc lude a large range of h igh-per formance PP and novel

polyolefinic resins with expanded properties, while Spheripol is

the leading polypropylene technology for the production of high

quality homopolymer, random and heterophasic copolymers.

Lyondel lBasel l is a leading l icensor of polypropy lene and

po lye thy lene techno log ies w i th more than 250 po lyo le f in

process licenses.

Morris Township, USA: Honeywel l has s tar ted fu l l -scale

commerc ia l product ion of a low-Global-Warming-Potent ia l

(GWP) material used as an aerosol propellant, insulating agent

and refrigerant.

The material, known by the industry designation HFO-1234ze

and marketed by Honeywell under its Solstice line of low-global-

warming materials, is being produced at the Honeywell Fluorine

Products facility in Baton Rouge, La. “Honeywell’s Baton Rouge

production facility is ready to serve customers around the world

with this innovative material, which has an ultra-low GWP of less

than 1,” said Ken Gayer, Vice President and General Manager

of Honeywell ’s Fluorine Products business. “We are seeing

an increasing demand for our entire Solstice line of low GWP

materials, and this new product has already been adopted by

a range of customers globally,” he added. Honeywell’s Baton

Rouge facility was built in 1945 and continues to serve as one

of Honeywell’s main manufacturing sites for its Performance

Materials and Technologies business. The site employs more than

200 people. Louisiana Governor Bobby Jindal said, “Honeywell

helps support hu ndreds of jobs in our state, and we are proud t he

company is expanding in Baton Rouge with a brand new product

line. This project is a good example of how Louisiana’s outstanding

business climate is convincing companies like Honeywell to

reinvest in our state, retain existing jobs and create additional

new career opportunities for our people.”

Melbourne, Australia: Orica’s multimillion-dollar investment

programme to improve the environmental performance of its

Kooragang Island site has passed a new milestone with the NSW

Government approving the construction of three ammonia flaring

systems. General Manager of Orica Kooragang Isla nd Scott Reid

said flaring systems are considered best practice and are used

extensively in modern plants around the world that produceand use ammonia. “This project will further improve our plant’s

environmental performance by capturing and flaring ammonia

emissions at safety release points,” Reid said.

Construction will commence shortly to install three flare stacks

at heights of six, 10 and 20 metres respectively, and is expected

to take three years to complete. It is anticipated that the flares

will operate infrequently and should only be visible if activated at

night. The programme also includes upgrades to ammonia storage

vessels as well as improved detection and isolation systems.

Orica KI has also been granted approval to constru ct a new nitric

acid tank, which will be used to store imported nitric acid as well

as provide additional storage for nitric acid produced on site.

Orica to Set-up 3 Ammonia Flaring Plants

T e c h n i p t o A c q u i r e A i r L i q u i d e ’ sPolymer Technologies

Paris, France: Technip has entered into an agreement with

Air Liquide Global E&C Solutions Germany to purchase all of

its Zimmer polymer technology business. Based in Frankfurt,Germany, the business includes technologies for the processing

of polyesters and polyamides, research and development facilit ies,

and a team of around 40 skilled engineers, researchers and

project t eams.

The new polymers business will diversify and strengthen Technip’s

portfolio of downstream technologies in its Onshore segment by

enhancing the group’s position as a technology provider to the

petrochemicals industries; reinforcing relationships with clients

and partners worldwide, backed by the Zimmer recognised

expertise; diversifying the Onshore segment, adding revenue

based on technology supply; and adding skilled resources, notably

in technology development in Europe.

Technip plans to integrate the new polymers technology

business through Technip Stone & Webster Process Technology,

the onshore global business unit formed in 2012 to manage

the company’s expanding portfolio of downstream process

technologies. Technip has a strong track record in major project

execution and is uniquely positioned to provide services for clients

ranging from conceptual studies, PDPs, FEEDs, and detailed

engineering through procurement and construction.


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Technology NewsCEW

20

• January 2015Chemical Engineering World

Fossil Fuel Reserves that Must Stay in the

Ground to Avoid Dangerous Climate Change

Cheap Asphalt Provides ‘Green’ Carbon Capture

London, UK: A third of oil reserves, half of gas reser ves and over 80

per cent of current coal reserves globally should remain in the ground

and not be used before 2050 if global warming is to stay below the

2 degree C target agreed by policy makers, according to new

research by the UCL Institute for Sustainable Resources. The

study funded by the UK Energy Research Centre also identifies the

geographic location of existing reserves that should remain unused

and so sets out the regions that stand to lose most from achieving

the 2 degree C goal. The authors show that the overwhelming

majority of the huge coal reserves in China, Russia and the United

States should remain unused along with over 260 thousand million

barrels oil reserves in the Middle East. The Middle East shouldalso leave over 60 per cent of its gas reserves in the ground.

The development of resources in the Arctic and any increase in

unconventional oil – oil of a poor quality which is hard to extract –

are also found to be inconsistent with effor ts to limit climate change.

For the study, the scientists first developed an innovative method

for estimating the quantities, locations and nature of the world’s oil,

gas and coal reser ves and resources. They then used an integrated

assessment model to explore which of these, along with low-carbon

energy sources, should be used up to 2050 to meet the world’s

energy needs. (Read more on http://www.alphagalileo.org/)

New York, USA: The best material to keep carbon dioxide from natural

gas wells from fouling the atmosphere may be a derivative of asphalt,

according to Rice University scientists. The Rice laboratory of chemist

James Tour followed up on last year’s discovery of a ‘green’ carbon

capture material for wellhead sequestration with the news that an even

better compound could be made cheaply in a few steps from asphalt,

the black, petroleum-based substance primarily used to build roads.

The research appears in the American Chemical Society journal

Applied Materials and Interfaces.

The best version of several made by the Tour lab is a powder that holds

114 per cent of its weight in carbon dioxide. Like last year’s material,

these new porous carbon materials capture carbon dioxide molecules

at room temperature while letting the desired methane natural gas

flow through. The basic compound known as asphalt-porous carbon

(A-PC) captures carbon dioxide as it leaves a wellhead under pressure

supplied by the rising gas itself (about 30 atmospheres, or 30 times

atmospheric pressure at sea level). When the pressure is relieved,A-PC spontaneously releases the carbon dioxide, which can be

piped off to storage, pumped back downhole or repurposed for such

uses as enhanced oil recovery. “This provides an ultra-inexpensive

route to a high-value material for the capture of carbon dioxide from

natural gas streams,” Tour said. “Not only did we increase its capacity,

we lowered the pr ice substantially.” He said they tried many grades

of asphalt, some costing as little as 30 cents per pound. (Read the

complete news on http://www.rice.edu/)

Colonia Roma, Mexico: The

‘OpeCNC’ system, consis ts

of software and hardware for

machine control. It can be applied

f rom ornamenta l i ronwork ,

cutting spare parts, pipes toadv e r t i s emen ts . W hen the

engineer Isaac Navarro Alcazar

needed to make two meters high

3D dinosaur figures, you did

not find the right tool to make

the cuts, so he decided to make his own machine: an innovative,

automated and efficient equipment capable of making plasma cuts

through plating and metal foils such as carbon steel, stainless

steel and aluminum, among others. A graduate of the National

Polytechnic Institute (IPN), with a Bachelor in Communications and

Electronics specialising in control and automation, Navarro Alcazar

and his brother designed a machine that can cut ‘any type pf figures,however complex.’ The entrepreneurs called the project ‘OpeCnc,’

which is a set of software and hardware to control these machines

and ‘CNC’ because of the computerised numerical control. “With this

technology, if a circular plate cut is required it can be made from an

AutoCAD drawing with the actual measurements, we generate the

code, translate it to the computer and the machine does the cutting,”

explained the Mexican entrepreneur.

The machine measures 1.22 x 3.05 meters, has mounted a plasma torch

and cuts plates up to an inch wide. It can be applied in conventional and

artistic ironwork, for example, to design and cut a door or window, plus

the system also serves on advertising by executing metal channel letters

(Read more on http://www.invdes.com.mx/)

E n t r e p r e n e u r s D e s i g n A u t o m a t e dCutting Equipment

The “OpeCNC” system, consists ofsoftware and hardware for machinecontrol. It can be applied fromornamental ironwork, cutting spareparts, pipes to advertisements.

Controlling the Properties of Nanomaterials

New York, USA: Scientists at the US Department of Energy’s Oak

Ridge National Laboratory are learning how the properties of water

molecules on the surface of metal oxides can be used to better

control these minerals and use them to make products such as more

efficient semiconductors for organic light emitting diodes and solar

cells, safer vehicle glass in fog and frost, and more environmentally

friendly chemical sensors for industrial applications.

The behaviour of water at the surface of a mineral is determined

largely by the ordered array of atoms in that area, called the interfacial

region. However, when the particles of the mineral or of any crystalline

solid are nanometer-sized, interfacial water can alter the crystalline

structure of the particles, control interactions between par ticles that

cause them to aggregate, or strongly encapsulate the particles, which

allow them to persist for long peri ods in the environment. As water is

an abundant component of our atmosphere, it is usually present on

nanoparticle surfaces exposed to air. (Read more on the website

of Oak Ridge National Laboratory)


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24 • January 2015 Chemical Engineering World

News FeaturesCEW

Prime Time to Invest in Talent & Technology: Kallada

In developing economies such as India,

the demand for well-tuned logistics

and compliance processes, which

match the same high practice standards

of multinational companies conducting

business to and from our in-country markets,

have become a matter of competitive

necessity, agrees Kallada.

While highlighting the impact of changing role

of Indian chemical industry in global supply

chains on the logistics industry over the last

couple of years, Kallada further comments

that beyond ethical practice and behaviours,

which are inevitable, there is a new generation

of supply chain and logistics leaders and

decision-makers who have earned a place at

their company’s Strategy Table. Accordingly,

the old practices of divvying small batches of

import and export business among scores of

third party providers is evolving - and swiftly -

to a more efficient and effective paradigm of

single-sourcing to achieve real-time visibility

and measurable command and control of

international purchase - and sales-order

execution. He states that the excellence

and unwavering reliability in conventional

services such as freight forwarding, customs

clearance and transportation management

are a must.

The chemical industry in India isgiving high priority to building more

compliance-f ocused infrastruc tures. For

example, service providers participate

with chemical sector clients in safety and

quality process improvement initiatives.

Moving risk avoidance from concept to

action is a key area of focus including

clearly defined processes and measurable

Key Performance Indicators (KPIs) for safe,

compliant service, Kallada elucidates.

Talent and Consistency – the Two Major

Issues

When asked about the major challenges

for the logistics services providers for

chemicals and petrochemicals industry

in India, Kallada mentions two major

issues - talent and consistency. “Finding,

hiring and retaining drivers, cleaners

and handling labourers are perpetual

challenges. In terms of consistency (or the

lack thereof), the industry as a whole must

give higher priority to common operating

standards, safety parameters and vendor

qualification processes. Fly by night

operators in business to make a quick

rupee, sans the long-term vision to invest

in their customers through safety, training

and responsible handling processes,

represent a clear and present danger for

the chemical Industry and for our nation,”

he worries. Kallada mentions ‘competition

and entrepreneurialism’ as the benefits to

our economy, but added that there is simply

no room in the business of chemical supply

chain and logistics management for cutting

corners to make a few rupees.

According to him, greater access and

transparency in the raising of common

standards are a must. “Another core issue

which government and industry must address

is port and road congestion. Until infrastructure

commitment turns to action, safety, productivity

and economic transformation from third world

to first world remain status quo.’

The Impact of Outdated Infrastructure

and Labour Laws

Are the issues of infrastructure and outdated

and inflexible labour laws affecting the

industry? “Yes, they are,” Kallada replies.“And the impacts on the growth of India’s

chemical industry are significant.” Kallada

states that the most obvious weaknesses

are in the speed and velocity of shipping

and asset utilisation. The cost of logistics

in India is comparatively higher than in most

of the other major international markets.

At this point Indian chemical products are

at a competitive disadvantage with other

international markets such as China. The

new national government has pledged to

fast track greenfield and infrastructure

projects, but it is going to take a sea

change from old fashioned thinking and

self-serving behaviours on many fronts to

The logistics industry in India already lags behind other countries when it comes to technology adoption

and investments. And as the country – with a new initiative of ‘Make in India’ – is likely to increase its

chemical production capacities to the next level, logistic mechanism will play a vital role in the overall

development of the industry. Harshal Y Desai brings forward the perspective of Pavithran M Kallada,

Managing Director, BDP International, India. Based in the US, BDP International operates freight logisticscentres in more than 17 cities throughout North America and a network of subsidiaries, joint ventures and

strategic partnerships in nearly 140 countries.

Logistics can be the next professional frontier in tandem with the

proliferation and envisaged growth of the manufacturing sector. In

that regard, I strongly advocate the establishment of a Nodal Ministry

at the national level dedicated to the advancement of the Logistics

Industry to support and even accelerate our nation’s growth.

Pavithran M Kallada


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News FeaturesCEW

The Critic al Components

• Excellence and unwavering reliability in conventional services such as freight

forwarding, customs clearance and transportation management are a must.

• On time delivery is critical, but understanding and measuring lead times is just

as important. For example, a surface transportation carrier moves the shipment

from a seaport or airport, (or domestically) from a factory to a forward warehouse

for eventual distribution. However that same inventory may sit in a delay mode for

days even weeks due to incorrect or unavailable documentation for final delivery,

damages during the handling, or unresolved tax and compliance issues. All of thesefactors and more impact supply chain effectiveness and deliverability.

• Visibility and automation of many of these far flung components of supply chain

management are catching up with global standards as all stakeholders involved

recognise the financial value of an orchestrated approach. Manufactures, customers,

transport companies, warehousing companies logistics/ handling agents and

government agencies must see and act in unison toward the common goal to boost

adoption and implementation.

• Sustainabil ity is another contemporary driver including green (carbon neutral)

transportation; warehouses that operate on solar/alternative energy; and paperless

customs, documentation, and border/cross border forms. The Indian Chemical

Council’s Nicer Globe Responsible Care programme also offers a framework for

safety and sustainability practices which all logistics ser vice providers should meetand exceed.

- Pavithran M Kallada, MD, BDP International, India

make the Indian economy more competitive,

he adds. Kallada also suggests that there

is dire need to build massive transportation

and distribution infrastructure between

remote locations and ports, and to revamp

antiquated, bureaucratic labour rules.

Logistics service is being redefined in India

as the best practices that meet internationalstandards for quality, training and measurable

performance become the rule rather than the

exception. However, there is no quick fix; an

abundance of challenges must be addressed

if the chemical sector in India is to achieve its

potential. Trained work forces for transport,

storage and distribution and safe and reliable

transportation or distribution infrastructure

and establishment of designated chemical

zones with common, shared infrastructure

including emergency response centre, fire

and safety corners, waste management

processing, packing and handling facilities,

warehouses, and a pool of well-trained

labour all under one area would enable the

chemical and logistics industries to leverage

common standards of compliance, safety,

performance and avoidance of calamity.

Kallada claims that this framework of shared

cost - shared investment - would go beyond

yielding ROI - it is simply the right thing

to do.

Need for Chemical Port

Though India is the 6 th largest chemical

producer globally and 3 rd largest in Asia,

the country has just one chemical port and

that too on the west coast.

Kallada believes that berth and terminal

facilities at existing ports on India’s west

coast and east coast dedicated to bulk

and liquid chemical shipping would be an

asset. He further explains, there is also a

need to address the growing demand forcontainerised cargo handling at existing

ports. With the growth of speciality

chemicals shipped in ocean containers

and ISO tanks, designated chemical zones

adjacent to ports with common, shared

infrastructure for emergency response, fire

and safety corners, waste management

processing, packing and handling facilities,

warehouses, and a pool of well-trained

labour all under one area would enable the

chemical and logistics industries to leverage

common standards of compliance, safety,

and productivity.

The Positive Elements

Kallada makes mention of two initiatives

while commenting on the best practices

that should be mandated for practicing in

Indian chemical logistics sector.

According to Kallada, “The Indian Chemical

Council’s Responsible Care initiative

is a vital mechanism for raising safety,

environmental and performance standards

which will raise India’s profile as a viable

market for chemical industry development.”

He also talks about Nicer Globe initiative

that offers a framework for safety and

sustainability practice which all logistics

service providers should endeavour to meet

and exceed. Kallada is of the opinion thatthe mandatory participation in Nicer Globe

by logistics service providers will also

appeal to chemical manufacturers siting

locations in South East Asia.

The competitive nature of inter-regional

chemical logistics cannot be over-stated as

production moves closer to consumption.

“An accreditation benchmarking process

with minimum qualification criteria for

selecting vendors and logistics service

provider is a trend that must move from

talk to action,” he adds.

Conclusion

Kallada believes that the growth of

manufacturing can have significantly

positive impacts on the logistics sector.

He strongly emphasises on the need toinvest in talent and technology in order to

reach global standards and expectations.

“The risk to our customers’ - chemical

manufacturers - reputations and financial

well-being demand that we raise the

competency bar. It is a competitive

necessity; beyond the need for work force

training and retention, the Indian logistics

industry must become a destination - a

home - for some of our nation’s best and

brightest minds,” he comments.

“There is certainly no shortage of

engineers, doctors and lawyers. Logistics

can be the next professional frontier

in tandem with the proliferation and

envisaged growth of the manufacturing

sector. In that regard I strongly advocate

the establishment of a Nodal Ministry

at the national level dedicated to the

advancement of the logistics industry to

support and even accelerate our nations’

growth,” he recommends.

Excellence and unwavering reliability in conventional services such as freight

forwarding, customs clearance and transportation management are a must.

• On time delivery is critical, but understanding and measuring lead times is just

as important. For example, a surface transportation carrier moves the shipment

from a seaport or airport, (or domestically) from a factory to a forward warehouse

for eventual distribution. However that same inventory may sit in a delay mode for

days even weeks due to incorrect or unavailable documentation for final delivery,

damages during the handling, or unresolved tax and compliance issues. All of thesefactors and more impact supply chain effectiveness and deliverability.

• Visibility and automation of many of these far flung components of supply chain

management are catching up with global standards as all stakeholders involved

recognise the financial value of an orchestrated approach. Manufactures, customers,

transport companies, warehousing companies logistics/ handling agents and

government agencies must see and act in unison toward the common goal to boost

adoption and implementation.

• Sustainabil ity is another contemporary driver including green (carbon neutral)

transportation; warehouses that operate on solar/alternative energy; and paperless

customs, documentation, and border/cross border forms. The Indian Chemical

Council’s Nicer Globe Responsible Care programme also offers a framework for

safety and sustainability practices which all logistics ser vice providers should meetand exceed.

Pavithran M Kallada, MD, BDP International, India


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26/110

28• January 2015

Chemical Engineering World

CEW Features

A

s Managing Director of an EPC

company in India, I am fortunate

to work with over 1100 highly

talented and skilled professionals,

and we continue to grow. Our ability

to deliver world class engineering and

process plant know-how from India is

a key differentiator that allows Linde

Engineering to be competitive globally.

There are many benefits to working in

India; however, there are challenges

as well. But one thing is certain, there

remains untapped potential in India to

shift the balance of trade towards more

home grown technologies and solutionsthat would reduce the demand of impo rted

goods to India. The impact to India

over time could dramatically change the

economic landscape in the country. The

talent is here and the motivation is high.

But, there are obstacles.

Make in India is not just a slogan but

a strategic initiative to improve the

Indian economy, create better job

opportunities and raise the standard

of living for all Indians. The ability togenerate incremental value addition

by increasing the domestic production

content of manufactured goods is

essential to developing economies. The

greater value addition will reduce the

amount of imports, and thus, it will create

more opportunities for wealth and job

creation. ‘Make in India’ is a necessity

as India transitions to a global power in

the world economy. India must reduce

Guest Colum n

In this insightful article that highlights a number of elements crucial for the success

of ‘Make in India’ campaign, Jason Cooper, Managing Director, Linde EngineeringIndia Pvt Ltd, suggests that the country has immense potential that needs to be tapped

systematically. “The value and quality of ‘Make in India’ products will be intrinsic to

the domestic consumer and preferred because of the value benefit both in price and

availability,” Cooper writes.

‘Make in India’ Promises a Brighter India, But…

way that promotes entrepreneurship while

being fair and agile for the developing

middle class. The key to sustainabilit y

is the middle class. Once growth is a

clear agenda item for the government and

policy relative to strengthening the middle

class is clear, the economy will self-prime

and grow organically. (See India’s rising

middle-class in Figure 1)

As can be seen from Figure 2, the balance

of trade as the middle class emerged

aggressively in the last decade is that

imports surged and generated a balance

of payments challenge that the RBI had

to manage. This has resulted in relatively

high inflation and put pressure on the

rupee. Figure 3 illustrates the effect of

the trade imbalance on the rupee and

clearly indicates that the pressure from

the trade imbalance actually deteriorated

wealth in real terms in India over the

same period.

How to break the Cycle? ‘Make in

India’, like ‘Make in China’ or ‘Make in

America’ campaigns, take advantage ofnationalist pride to promote domestic

consumption and production. With a

decrease in demand on imported goods,

the real value creation can be reinvested

in new production and help drive growth.

the gap between import and export

value and begin to develop home grown

technology solutions that make it more

competiti ve and sustainable. The ‘Make

in India’ know-how must become a sought

after commodity.

Most developing economies grow as

they exhaust mineral wealth or through

basic agricultural exports. But, as these

economies begin to flourish and the

demand for imported items increases with

the developing middle class, the lack of

a fully integrated economy across the

value chain means that dependence on

imports increases as inflation increases

while debt burden also increases. The

only way to fight this cycle is to create a

balance between imported and exported

goods such that ideally, the country is

neutral or export positive. In this way,

the currency is stable and the increm ental

wealth generated can be used for

diversification of the economy with real

investment in factories, development of

new products for export and increasing

domestic consumption and production.

Sustainability for a developing economy

can only be created in a methodical and

structured way. Regulatory policy and

tax policy must be structured in such a

There remains untapped potential in India to shift the balance of trade towards

more home grown technologies a nd solutions that would reduce the de mand

of imported goods to India. The impact to India over time could dramatically

change the economic landscape in the country.


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28/11030 • January 2015


CEW Features

The impact to the economy can besignificant and more importantly helps

stimulate sustainable growth and job

creation. We have a unique opportunity

with the excitement generated by the

new government to really kick this off

and make real progress in curbing the

trade deficit.

One essential feature of any campaign

like ‘Make in India’ is to clearly convey

the value that the campaign brings to the

consumer. The creativity and innovationof a young and well educated workforce

will drive the introduction of new and

creative product solutions. In time,

the value and quality of ‘Make in India’

products will be intrinsic to the domestic

consumer and preferred because of the

value benefit both in price and availability.

Some of the challenges that Indi a will face

to create a real push for the campaign

whereby a meaningful dent in thebalance of trade can be realised will be

availability of venture capital for modern

manufacturing investment, product

development know-how (IP) and logistics.

Venture capital should fl ow more freely as

the interest rates decline and cash flows

more freely for investment. Fiscal policy

of the Modi government has made this a

priority. Modern manufacturi ng capacity

is an evolving story in India. Some of the

most technologically advanced factories

exist in India alongside some of theleast advanced. Managing quality along

the supply chain as well as schedule

performance will be a challenge as sub

vendors for complex products will have

differing levels of quality management

systems as well as compliance cultures.

Manufacturin g to internatio nal engineering

and quality standards is required and

quality compromises can no longer be

accepted in Indian manufacturing.

India has developed a strong service

industry in Engineering and IT. The same

energy now needs to be applied to build

world scale highly efficient manufacturing

processes. This can be achieved through

jo in t ventures and techno logy partnering

arrangements or though organic home

grown development. Obviously, the latter

will take more time, but could yield betterresults in the long term in some cases. I

have heard often that “you need an Indian

solution to an Indian problem.” Perhaps

that could be the competitive edge to

take an obsolete technology available in

the US, Europe or elsewhere, revamp for

the Indian market and redeploy for Indian

consumption to fit a niche application.

The Indian market is complex with

many socio-economic dimensions. The

creativity of the Indian entrepreneur is

boundless. I have been amazed duringmy time in India to see how very simple

ideas can be converted into low cost

creative solutions to solve a problem.

We need to bring this to bear on a larger

scale and address the strategic needs of

the country.

Energy, infrastructure and logistics will

play a huge role in realising the benefits

of the campaign. Improvements in

the reliability of power, warehousing,

distribution and transportationinfrastructure are required to improve the

timeliness of products to market and to

ensure they are not damaged getting there.

Domestic special economi c zones need to

be setup to promote vertical integration to

simplify supply chain challenges. High

speed trucking and rail corridors need

to be established between major urban

areas and regional distribution hubs. As

the middle class expands and wealth

increases, so will expectations for speed

and quality. Suppliers will increasingly notonly be judged by price, but by speed and

availabilit y. Also, given that India remains

a largely rural country, accessibility to

the rural towns and villages and logistic

solutions that address the ‘last mile’ must

be considered and developed.

Energy policy in particular needs to be

improved to accelerate the development

of coal assets for power and the

Figure 1: Ind ia’s rising middle-class.

Figure 2: India Balance of Trade from 1990 to 2014.


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32• January 2015


CEW Features

production of Synthetic Natural Gas

(SNG) and to expand the exploration and

production of domestic oil and gas. The

dependence on imported oil and gas is

going to hamper the fight against inflation

as long as landed LNG and crude remain

at their current levels.

Energy prices at parity with other

developing countries will allow India to

truly leverage manufacturing capacity

and drive expansion. Alternative energy

credits and investment in wind and solar,

especially in isolated areas, will promote

opportunities in rural areas off the grid.

Tax, importation and regulatory obstacles

will remain significant challenges to

growth and domestic trade development.Liberalisation of tax policy including the

introduction of GST in India needs to take

centre stage of any growth policy. The

combination of different taxes imposed

in India and the frequent changes in tax

policy makes manufacturing and reselling

in India highly complex. The intrastate and

central tax regimes that are in place impose

significant burdens on the producers and

resellers that can limit competitiveness

and often embroil them in red tape and

hampered cash flow.

India has both the burden of 1.3 billion

people and also the wealth of 1.3 billion

people from which manufacturing has

often developed labour centric solutions in

lieu of investment in t echnology.

The labour pressure will only continue to

build with the increasing mechanisation

of rural agriculture and the increasing

migration from rural to urban areas.

However, the dependency on cheap

labour as being the sole source ofcompetitiveness needs to be changed.

Cheap labour often means unskilled

and poor quality workmanship. There

must be a push for skill development in

key trades and tax incentives should be

developed for private companies to invest

and support these programmes. India

must tap into the tremendous pool of talent

that exists with the young engineers and

scientists that it exports. Provide good

jobs, based on home grown technologies

that provide competitive salaries that keep

this talent at home. A combination of

better technology and better skills in lieu

of sheer numbers will dramatically change

the innovation potential, manufacturing

productivity and quality landscape

in India.

India has tremendous potential that can only

be unlocked when the nation pulls together

to support a common challenge, like ‘Make

in India’. The campaign offers the promise

of better jobs, a better standard of living anda more sustainable long term economy.

The public and private sector should work

together to develop a joint action plan

to promote a liberalised tax regime and

industrial development plan, prioritised

by industry, identifying the areas of

development that make the most sense to

increase domestic production and reduce

export demand.

Figure 3: FOREX rates of INR/USD - Source, Yahoo.

Tax, importation and regulatory obstacles will remain significant challenges

to growth and domestic trade development. Liberali sation of tax policy

including the introduction of GST in India needs to take centre stage of

any growth policy.


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36• January 2015 Chemical Engineering World

CEW Features

T

he government is willing to move

ahead from License Raj, our anarchic

labour laws and absolutely outdated

land reforms. The will of the policy makers

more than anything else will contribute to

the success of this initiat ive. Future success

of this ‘Make in India’ init iative will depend a

lot on government’s ideas and execution to

make doing business in India easier.

Renewable energy is identified as one of the

sector for this programme. The availability

and scope of using renewable energy to

fulfill our unfulfilled power needs has been

endlessly debated in various forums. Butprobably this is the first time; it is a core

issue of National Policy Discussion. We are

undoubtedly a power starved nation with an

ever growing hunger for power. This new

initiative will not only increase our hunger

to provide power to these manufacturing

units but also increase the power needs

of individuals as their per capita goes up.

For manufacturers, who have already

covered substantial ground and look

eagerly for the future, this is the moment

to expand rapidly, developing world classR&D facilities, bringing in new partners and

carefully improving our skills to match and

compete with global manufacturers who

seem to have jumped light years ahead. We

need to believe in this concept of ‘Make in

India’ and should also know that only the

government would not be able to fulfill it,

we the stakeholders should also contribute

by means of new innovations and show the

hunger to expand.

Guest Colum n

‘Make in India’ is a concept to enhance India’s position as a leading manufacturing hub

in the near future. It is an initiative to prove that we can be world-class manufacturers

and innovators. It is an attempt by the government to bring in much needed foreigninvestment in the country. This campaign aims at rejuvenating the economy, creating

new jobs, to foster innovation, to launch a skill development programmes alongside

building best-in-class manufacturing infrastructure. The campaign also calls for the

government to be more transparent, responsive and accountable, writes Hitesh Doshi,

Chairman and Managing Director, WAAREE Group.

Can ‘Make in India’ Pave Way for Solar Industry?

The Indian government has decided to

increase the share of renewable in the

energy mix from 6.5 per cent to 12 per cent

in the next three years. The government

has set its eye on the goal to achieve

100GW by end of 2022. Though it has not

yet generated enough storms in the global

market due to their previous experience.

Imagine the kind of opportunities, jobs

and growth it would contribute even if half

the target is achieved. The growth of this

industry in India has a story to tell of its

own. Despite the regulatory delays, unclear

policies and challenges due to poor infra

and lack of capital, the solar industry in

India has done significantly well. From just

few MW to raise capacity to 3GW in 4 years

is no mean task when you consider the

challenges faced by us.

We have the potential to fulfill most of our

power deficit by way of solar generation;

such is the immense potential of our

country blessed by the Sun, when Germany

with its difficult geographical conditions can

add 40GW, what can stop a God blessed

country like us which has ample sunshine.Even a rough weather state like J&K has

potential to produce 11GW of solar energy.

India will witness a solar growth on a

scale, difficult to imagine and foreseen in

any country on this globe, but for this to

materialise, it would require significant

amount of efforts and ability to override

challenges. First challenge will be to

attract investment at cheaper cost than the

domestic rates. At least 30 per cent of the

investment will have to come from foreign

investors. The challenge lies in giving

confidence to the investors about their

returns; the off taker has to be financially

capable to servicing the agreements.

Finding the right off taker, who is buying

power for the right reasons at the right

price, will make the project more bankable

and give assurance to the investors.

Another huge challenge comes from our

ability or rather reluctance to innovate and

spend on R&D and mind you this is not

specific to our industry. If we want to raise

our bar we have to focus on this aspect

otherwise all these initiatives would fall on

its face.

Furthermore, as far as our industry goes, the

controlled grid prices are a huge challenge

as it does not inspire confidence to foreigninvestors as it is not market linked but is

linked to political powers in the states. The

state utilities should be made autonomous

and drastic changes need to be done in the

Electricity Act.

Despite the regulatory delays, unclear pol icies and chal lenges due

to poor infra and lack of capital, the solar industry in India has done

significantly well.


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Contact:Mr. Chetan Shroff, Sr. Manager- Business Development, Mobile: 900405362, Email: [email protected]. Sachin D Deshpande, Sr. Project Manger, Mobile: 9845250302 Email: [email protected]

.more

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38• January 2015 Chemical Engineering World

CEW Features

This is necessary to improve the financial stability of the utilities,

which plays a key role in the growth of industry. No investor

would like to deal with a utility in poor health. These changes

would in return boost the manufacturing ability since it would

give investors the much needed confidence of the country

heading somewhere.

Our anarchic land and labour laws have been a big turnoff to all

investors. Though the government has slowly but steadily startedrevamping the labour laws and has already rolled out first phase

of reforms much has been left to desire as far as land reforms are

concerned. They need utmost attention. We as citizen of this country

understand the need of social and environmental security of those

being displaced but this at no point should become a hindrance

to our growth as it would paralyse the entire nation. Rather than,

this we should take steps to find a middle path. The inspector and

license raj along with our at times ridiculous taxation policies need

to be relaxed and reframed in case we desire to come any closer

to our dream of ‘Make in India’. These policies more than anything

have led to the downfall of our manufacturing industry. Now is the

time to overhaul them if you really want to generate any degree ofconfidence in investors and manufacturers.

India wants to achieve scale in a very short time frame so the strategy

of Ultra Mega Power Projects’ (UMPP) and utility scale projects are

the right way to go now. But only when solar systems become as

mainstream as mobile phones we can say that we have realised

its full potential. The biggest strength of solar is that it can produce

power at the point of consumption. We have to allow for net metering

across the country so that people can start generating electricity on

their own. We also have to ensure availability of finance for such

projects. We have to move from the current upfront subsidy scheme

to providing soft loans which will work better. Further, we need more

and more SEZ’s and manufacturing hubs which provide benefits in

terms of tax rebates, lower electricity charges etc. An integrated

infrastructure development with roads, ports needs to be planned

and executed. The most basic challenge which we need to overcome

is our logistics facilities; we are laggards to world in terms of our

railways, road transport and inland transport. These basic aspects

need to be improved if we are to dream of ‘Make in India’. It is core to

the philosophy, a building block without it we cannot even walk a mile.

We have to encourage entrepreneurs to be part of this revolution

and the recent skill development programme is in the rightdirection. More than capital, this industry needs skilled people,

this industry alone has a potential to generate over a million plus

employment opportunities. Our focus should be to develop skilled

people. A mammoth effort needs to be put forward for training

and development. Skill centres, autonomous institutes etc need to

be promoted. This would not only generate a work force for the

growing industry but would also generate employment opportunities

- and more importantly - would create thousands of entrepreneurs

who in their own would contribute to the ‘Make in India’ dream of

the government.

VOL. 49 NO. 3 March2014 US $ 10 ` 150

ChemTECH WorldExpo 201528-31January2015, Mumbai, India

PCM Special

`

28-31January 2015, Mumbai, India


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40 • January 2015

CEW Features


Guest Colum n

The global economy has started to show signs of recovery. Fresh investments are being planned in the process

industry worldwide. Indian pumps and valves manufacturers can thus expect opportunities to grow in the export

markets, especially in the Middle East and North Africa (MENA) and NAFTA regions. But it is essential that they

first get their house in order by building robust processes, say Shripad Ranade, Senior Principal, TSMG and

Yogesh Shivani, Associate Consultant, TSMG.

Indian Pumps & Valves Industry: Time to Go Global

and is expected to grow at an annual rate

of 7 to 10 per cent over the next few years.

The new government in the centre is

expected to take policy initiatives that

will help the Indian industry. The signs of

recovery in the global economy also bode

well for pumps and valves manufacturers. Itis thus time for domestic manufacturers to

strive to overcome current challenges and

gear up for the next phase of growth.

Indian Pumps Industry

Global pump market is estimated at USD

47 billion in 2014 and is estimated to

reach USD 56 billion by 2017. The Indian

pump market is close to 2 per cent of

the global market and was estimated at

` 8,500 crore in FY14. Agriculture and

Building services are the two largest

end use segments, as depicted in the

figures 1 and 2.

The pump industry is classified into

centrifugal and positive displacement

pumps, with centrifugal pumps being 95 per

cent of the market, within which single stage

radial flow pumps and submersible pumps

together make up 70 per cent. Rotary

The global economy has had subdued

growth for the last few years with

global output contracting by 0.6

per cent in 2009. However, it is expected

to embark on a growth trajectory going

forward largely on the back of developing

economies, and the IMF expects globaloutput to grow by 3.8 per cent in 2015.

The Indian economy seems poised for

the next phase of growth after sluggish

performance over the past few years. The

recent data on the composite performance

of eight core industries – coal, crude, oil,

natural gas, refinery products, fertilisers,

steel, cement and electricity – is seen to

be encouraging. Assuming such trends

are sustained in the coming months, there

would be much better industrial growth in

H2 of FY15.

The pumps and valves manufacturers

are significant suppliers to the process

industry and also cater to other end use

sectors such as automation for discrete

manufacturing and pumps for agricultural

use. The pumps and valves market in India

provides an opportunity of `17,500 crore

Fig 1: Indian pump market ( ̀ Cr). Fig 2: Key end use segments

Shripad Ranade

Yogesh Shivani


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CEW Features

positive displacement pumps account for

the largest share of positive displacement

pumps. Key manufacturers of centrifugal

pumps in India are: Kirloskar Brothers

Limited (KBL), KSB, Grundfos, CRI and

Aqua Group.

India exports pumps to nearly 70 countries.

In FY14, exports stood at `1,280 crores,having more than doubled over three

years. As much as 16 per cent of Indian

pump manufacturing capacity is geared

for exports. Key export destinations are

the Middle East, North Africa and other

more developed economies such as USA,

Germany and Russia. The emerging markets

of China and Latin America also provide

attractive opportunities.

Our discussions with industry players

reveal that succeeding in global marketswill require increased focus on quality

along with low cost positioning and active

marketing. India is well positioned to grow

into a much larger manufacturing base for

pumps driven by attractive factor conditions.

It is very likely that India will be a signifi cant

exporter of pumps in the coming years.

Indian Industrial Valves Industry

Industrial valves market is divided into

two segments - On-Off valves and Control

valves. On-off valves accounts for 98 percent of the valves market by volume and

80 per cent by value. About 88 per cent of

the demand is from projects, while 12 per

cent is replacement demand. Global market

for industrial valves is expected to reach

USD 75 billion by 2017 with China, Africa,

Middle East and India expected to propel

the demand. Figure 3 shows the Indian

market which constitutes ~2.5 per cent of

the global market. Oil and gas followed

by power, petrochemicals, chemicals and

fertilisers are the major end use sectors, asshown in figure 4.

The Indian valve industry is highly

fragmented with around 600 valve

manufacturers, of which more than 95 per

cent are in the micro, small and medium

enterprise (MSME) category. Top 10

players service 40 per cent of the market.

Demand for high end customised valves

is bound to grow in the MENA region with

their shift from upstream oil and gas based

economy to supply of refined petroleum

products. Large addition of refining capacity

is underway in the MENA region. Investment

in desalination plants will further increase

demand for valves. The NAFTA region will

account for about 18 per cent of total valve

demand by 2017. Discovery of shale gas

and huge investment for its extraction has

turned USA into a net exporter of oil and

gas. These investments will drive demand

for val

chemical engineering world - january 2015

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