EPOXY RESINS

CONTENTS
SECTION

PRODUCT CHARACTERISTICS AND SPECIFICATION

SECTION

II

PRODUCT APPLICATIONS

SECTION

III

INDIAN MANUFACTURERS

SECTION

IV

IMPORT/EXPORT LEVEL

SECTION

PRICE DETAILS

SECTION

VI

INDIAN DEMAND

SECTION

VII

BROAD OUTLINE OF MANUFACTURING PROCESS

SECTION

VIII

RAW MATERIAL REQUIREMENTS, UTILITY

AND AVAILABILITY

SECTION

IX

GLOBAL SCENARIO

SECTION

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

SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATIONS
Epoxy resins are characterized by epoxy equivalent (EEVV)/epoxy value, hydrolysable
chlorine content, total chlorine content, viscosity/softening point, volatile content, colour,
clarity, hydroxylvalue, ionic iron, sodium and chlorine contents.
IS Specification of Epoxy resin
IS : 9197-1979
This shall be liquid epoxy resin containing no hardeners. It shall be of the following two
grades:
a)
Grade 1 - Resins containing no diluents. These shall conform to the requirements
laid in Table 1.
b)
Grade 2 - Resins modified with a reactive diluent. These shall conform to the
requirements laid down in Table 2. Each class of Grade 2 resin can be made with Grade 1
resin.
Requirements for Grade 1 Epoxy resin
Class

Epoxy content

Equivalent/
1000 g
I

5.0 to 5.88

Viscosity
27 Deg C Pa.s.
Weight per
epoxy
Equivalent
200 to 170
3 to 20

Specific
Hydrolysable
gravity 27 chlorine
Deg C
content, %,
max.

1.05 min
1.20 max

0.6

Requirements for Grade 2 Epoxy resin

Class

Epoxy content
Equivalent/ 1000 g, min

Viscosity
27 Deg C Pa.s.

0.5 to 0.9

II

0.9 to 4

III

4 to 10

Specific
Hydrolysable
gravity 27 chlorine
Deg C
content, %,
max.
1.05 Min. 0.6
1.20 Max.
1.05 Min. 1.20 0.6
Max.
1.05 Min. 1.20 0.6
Max.

SECTION II
PRODUCT APPLICATIONS
Epoxy resin finds application in number of sectors such as the following.
*
*
*
*
*

Protective Coatings.
Structural Composites
Electrical Laminates
Casting and Encapsulation
Adhesives

* As adhesive for aircraft honeycomb structures, for paint brush bristles, concrete topping
compounds.
* As body solders and caulking compounds for the repair of plastic and metal
boats,automobiles etc.
* As casting compounds for the fabrication of short run and prototype moulds, stamping
dies, patterns and tooling.
* As caulking and sealant compounds in building and highway construction applications
and in applications where high orders of chemical resistance are required.
* As potting and encapsulation compounds and impregnating resins and varnishes for
electric and electronic equipment.
* As laminating resins for airframe and missile applications, for filament wound
structures and for tooling fixture.
Epoxy based solution coatings are used in maintenance and product finishes, marine
finishes, masonry finishes, structure steel coatings and tank coatings, aircraft finishes,
appliance primers, automotive primers, car and drum linings, furniture finishes and
collapsible tube coatings. They are used for concrete floor paints, gym and floor
varnishes, spar varnishes etc.
Epoxy Resins are also used in decorative floor applications, as chemically resistant
mortars and floor topping compound; in printing inks, in fabric treating applications in
dental, surgical and prosthetic applications for breaking petroleum emulsions and for
light weight chemically resistant foams.
The epoxy resins are used as additives for a variety of other plastic materials, such as
vinyl and acrylic resins and natural and synthetic rubbers.
4

SECTION III
INDIAN MANUFACTURERS
The manufacturers of epoxy resin, other than the paint units, who have captive facilities
include the following
*

Atul Limited
Corporate Office :
P.O. Atul 396 020, Dist. Valsad
Factory : 297, GIDC Industrial Estate,
Ankleshwar-393 002

Bluebell Polymers Pvt. Ltd.

Regd. Office & Postal Address:
79, G.V.M.S. Audyogic Vasahat Ltd.,
Odhav, Ahmedabad-382 415
Factory : Block No.131, Bileshwarpura,
Taluka Kalol, Dist. Mehsana-382 729

Cibatul Limited
P.O. Atul 396 020,Dist. Valsad, Gujarat

Coromandel Prodorite Pvt. Ltd.,

Factory :
Post Bag No.7, 24, Thattankulam Road,
Madhavaram,Madras-600 060.

Dr. Beck & Co (I) Ltd.,

Beck House,Damle, Patoff
Off. Law College Road,Pune-411 004
Factory : Pimpri, Maharashtra and Ankleshwar, Gujarat

Himalaya Resins & Paints Private Limited

Regd. Office & Factory:
Baroda Godhra Highway, At: Alindra
Post Box No.19, Kalol (PMS)-389 330, Gujarat.

Indo N M Resin Systems Pvt. Ltd.,

15A, Bhale Estate, Mumbai-Pune Road,
Wakadewadi, Pune-411 003.
Factory : GATE No. 943/1A/1/2,
Sanaswadi, Taluka-Shirur Dist.,Pune.
5

Kromatik & Insulants (P) Ltd.,

C-4 Indl. Estate, Mogappair West, Chennai 600 058.

Noble Synthetics Limited

Factory : D-43(5) T.T.C., MIDC Indl. Area
Navi Mumbai-500 706

Petro Araldite Pvt. Ltd.,

Manali Express Highway,
Manali, Madras-600 068.

Parikh Resins & Polymers Ltd.,

54/38 Naya Ganj,
Kanpur-208 001

Resinova Chemie Ltd.

54/38, Nayaganj, Kanpur-208 001

Resins and Plastics Limited

Plot No. A/8, Marol Industrial Estate Of MIDC,
Cross Road B, Street No.5,
Andheri (E), Mumbai 400 093
Plot Number 3-A,
Taloja Indl. Estate of MIDC
Taloja A.V.-410 208

Ruia Chemical Pvt. Ltd.,

Regd. Office : 105/2B, Ultadanga Main Road
Calcutta-700 067

Spectrum Alkyd & Resins Limited

Factory Add: G-42, MIDC, Industrial Area,
Waluj-431 133, Dist. Aurangabad
Regd Office: 73, Persepolis, 100,
Cuffe parade,
Mumbai-400 005

Subh Resins & Fuels P.Ltd.

6-56, Chandanagar,
Hyderabad 500 050
Plot No.42-A, IDA, Phase V,
Patancheru, Medak Dist., Andhra Pradesh

Synthetics & Polymer Industries

Regd. Office & Factory:77 G.V.M.S. Audyogic Vasahat Ltd.,
6

Odhav, Ahmedabad-382 415

Profile of Petro Araldite Pvt. Ltd.,

PAPL was formerly a joint venture between Tamil Nadu Petro Products Ltd.
(TPL) and Ciba India Pvt. Ltd., a whollyowned subsidiary of the Swissbased Ciba
Speciality Chemicals Company.
The facility has the capacity to manufacture 30,000 tonnes epoxy resins,
formulations and ancillaries per year.
Vantico International has boughtout the Indian Partners, Tamil Nadu
Petroproducts (TPL), in Petro Araldite (PAPL) through its Indian arm. Currently, Vantico
holds 76% equity directly in PAPL. PAPL is in the business of polymers.
It manufactures epoxy resin out of epichlorohydrin produced by TPL. However,
following Ciba's global divestiture from the polymer business, CIPL sold its stake in
PAPL to Vantico for Rs.40 crore in March 2002.
After this deal, Vantico wanted TPL to reduce the price of Epichlorohydrin which
was resisted by the latter. Thereafter, Ciba had offered to pay compensation for the
premature termination of supply contract. On the basis of this, TPL had entered into a
fresh contract for supplying ECH at market rate against the earlier cost-plus price.
Vantico was created through a spin-off and management takeover of the
performance polymers division of Ciba Speciality Chemicals.
The Luxembourg incorporated company provides solutions in the field of
coatings, structural composites, adhesives, tooling materials, electrical and electronic
insulation, utilising thermosetting polymers of the automotive, electronic, electrical,
aerospace and consumer-durable industry.

Indian installed capacity

Around 50000 tonnes per annum

SECTION IV
IMPORT/EXPORT LEVEL
4.1

Import

4.1.1. Present import level

4.1.2

3700 tonnes per annum

Countrywise Imports

Period April 2001 to March 2002

Country
Australia
Austria
Belgium
Canada
Chinese Taipei
China P RP
Czech Republc
France
German F REP
Hong Kong
Ireland
Israel
Italy
Japan
Korea RP
Malaysia
Netherland
New Zealand
Saudi Arab
Singapore
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Thailand
U Arab Emts
UK
USA
Unspecified

Qunatity in Kgs
5937
4580
42586
24180
319219
170591
75
17160
279375
14318
4690
3550
174056
240446
506955
67750
177243
1940
400
17763
3246
2000
56420
500
78851
621516
283827
259500
252932
100
8

4.1.3

Sample of individual imports of Epoxy Resins

Period 2002
Name of the
Importers
Aroma Agencies

Quantity in
tonnes
4.700

Value in Rs.

Country

Date

Port

335646

Thailand

Mumbai

Ganpati Resistors
P.Ltd.,
Aroma Agencies

0.530

79667

Tiwan

6.160

334318

Thailand

Aroma Agencies

13.72

251288

Holland

Asian PPG
Industries
Asian Paints Inds.

18.000

1472853

Holland

14.750

940893

UK

01.01.2002 to
08.01.2002
01.02.2002 to
09.02.2002
01.03.2002 to
08.03.2002
01.04.2002 to
05.04.2002
01.05.2002 to
07.05.2002
11.06.2002 to
17.06.2002

4.2

Export Level

4.2.1

Present export level

4.2.2

Countrywise Exports

Around 1200 tonnes per annum

Period April 2001 to March 2002

Country
Argentina
Australia
Bangladesh
Belgium
Brazil
Canada
China P RP
Egypt A RP
France
Hong Kong
Japan
Kenya
Korea DP RP
Korea RP
Malaysia
Oman

Qunatity in Kgs
46640
3500
1100
161120
17600
3160
28865
8800
8000
35600
2500
6750
26000
172000
14020
30
9

Mumbai
Mumbai
Mumbai
Mumbai
Mumbai

Pakistan
Saudi Arab
Singapore
Slovenia
Sri Lanka
Switzerland
Thailand
U Arab Emts
UK
USA
Venezuela
4.2.3

1950
59050
18301
17600
5680
236600
2130
15300
28710
276696
396

Sample of individual exports of Epoxy Resins

Period 2002
Name of the
Exporters
Petro Araldite
P.Ltd.,
Schenectady Beck
India
Petro Aradite P.Ltd.,
Supa Sales &
Services
Asian Paints (I) Ltd.,

Quantity in
tonnes
0.003

Value in Rs.

Country

Date

Port

289

Colombo

Chennai

0.060

15792

Muscat

0.4

29290

Dubai

1.000

93600

Djibouti

0.2

5459

Colombo

13.01.2002 to
31.01.2002
01.02.2002 to
15.02.2002
01.03.2002 to
12.03.2002
01.05.2002 to
31.05.2002
17.06.2002 to
29.06.2002

10

Mumbai
Chennai
Mumbai
Mumbai

SECTION V
PRICE TRENDS
Basic price

Taxes and duties

Around Rs.390 per kg

Extra as applicable

11

SECTION VI
INDIAN DEMAND
Present Indian Demand

Around 10000 tonnes per annum

Petro Araldite Pvt. Ltd., and Atul Ltd. are the major players in the organised sector,
jointly holding a market share of about 80 %. The unorganised sector accounts for the
balance 20%.
Consolidated Statement of demand for Epoxy resin
S.No.

Sectors

1.
2.
3.
4.

Industrial Protective Coatings

Electrical and Electronic Industries
Civil Construction Applications and Adhesives
FRP Composites and Miscellaneous sector
Total estimated demand

Growth rate in demand

6 to 7% per annum.

12

Demand
In TPA
4000
1300
2700
2000
10000

SECTION VII
BROAD OUTLINE OF MANUFACTURING PROCESS
Epichlorohydrin and Bisphenol A are reacted under specified conditions of temperature
of reaction etc and the reaction product is washed, free from electrolytes. Further, it is
dehydrated under reduced pressure.
Source of technology
*

National Research and Development Corpn. Ltd., (NRDC)

New Delhi

Major Plant and machinery and suppliers

Name of the equipment

Name of the supplier

Reaction vessels

Srivari Enterprises
SP-123, XIX Phase
Ambattur Indl. Estate,
Chennai-600 058
Chemicals Plant & Equipment Pvt. Ltd
Plot No.69, Old No.39,
II main Road, Ambattur Indl. Estate
Chennai-600 058

Filters

Air Filter Industries

Mercantile Building
2nd Floor, G.P.O. Box 886
9A, Lal Bazar Street
Calcutta-700 001
Divya International
23A, Netaji Subhas Road,
8th Floor, Room No.28,
Calcutta-700 001

Air compressors

ELGI Equipments Ltd.,

Elgi Industrial Complex III,
Trichy Road,
Singanallur, Coimbatore-641 005
K.G. Khosla Compressors Ltd.,
19.8 KMS, Delhi-Mathura Road,
Faridabad-121 003, Haryana

13

Kaeser Kompressoren India

9 & 10, Symphony `C' Bldg.,
Range Hill Road
Shivaji Nagar, Pune-411 020
Thermic fluid heaters

Aero Therm Systems Pvt. Ltd.,

Plot No,1517, Phase III
GIDC, Vatwa, Ahmedabad 382 445
Energy Machine
C1, B/423, GIDC, IV- Phase, Vithal
Udyognagar, Dist.Anand, Gujarat

14

SECTION VIII
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY
Raw material requirements
Basis

One tonne of Epoxy Resin

Bisphenol A
Epichlorohydrin
Sodium Hydroxide
Toluene

0.73 tonne
3.33 tonne
0.33 tonne
0.13 tonne

Utilities
Total Installed power

75 HP for the project of capacity 300

tonnes per annum.

Fuel:

50 litres

Water required per day

6,000 litres.

Raw material availability

Name of the raw material

Name of the supplier

Bisphenol-A

Kesar Petroproducts Ltd., Ratnagiri

Epichlorohydrin

Tamilnadu Petroproducts Ltd., Chennai

Toluene

Kochi Refineries Ltd., Kerala

15

SECTION IX
GLOBAL SCENARIO
9.1.

Important Global manufacturers of Epoxy resin include the following

*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*

Dow Chemical (Australia) Ltd., Australia

3M France, France
Rhone Poulenc Industries SA, France
Kureha Chemicals GmbH, Germany
Schering Aktinegesellschaft, Germany
Ashi-Ciba Limited., Japan
Asahi Chemical Industry Co. Ltd., Japan
Asahi Denka Kogyo K.K.,Japan
Mitsui Petrochemical Industries Ltd.,Japan
Nippon Kayaku Co. Ltd.,Japan
Nippon Steel Corporation, Japan
Sumitomo Chemical Co. Ltd., Japan
Air Products Nederland B.V., The Netherlands
Resinas Sinteticas SA, Spain
Borden (UK) Ltd., UK
Airtech International Inc.,USA
Abatron Inc, USA
The Dow Chemical Co., USA

9.2.

Range of Epoxy resin formulations made by global producer

Dow Chemical Co. Trademark DER and DEN

Number

Epoxy Equivalent
weight

DER 330
DER 331
DER 331
VC
DER 332
DER 332
LC
DER 332
VC
DER 334

182-189
186-192
186-192

Viscosity,
Centipoises at
25 (Durrans
m.p., Deg.C)
7000-10000
11000-14000
11000-14000

172-176
170-175

4000-5500
3000-6400

170-175

3000-6400

178-186

500-700

DER 335

170-180

150-210

DER 336

181-192

4000-8000
16

Comments and representative

IR spectra
(Appendixes 4-1 and 13-1)
Low viscosity DGEBA resin
Liquid DGEBA resin. IR No.4-1-10
Liquid DGEBA resin. Low foam
IR No.4-1-10
Pure, Liquid DGEBA resin.
Pure, Liquid DGEBA resin. Low
Chlorine
Pure, Liquid DGEBA resin.Low
foam
DER 331 diluted with 12% butyl
glycidyl ether
DER 331 diluted with 20% butyl
glycidyl ether
DER 331 diluted with phenyl

DER 337

230-250

DER 337X-90
DER 511
DER 511
A-80
DER 511
EK-80
DER 542

230-250 (Based
on solids(
445-520
445-520 (based
on solids)
445-520 (based
on solids)
330-380

DER 557
DER 660
DER 661
DER 661
PR
DER 661
A-80
DER 661
EK 75
DER 661
PRA-80
DER 662

1600-2000
425-575
475-575
475-525

(113-123)
(65-74)
(70-80)
(70-78)

475-575 (Based
on solids)
475-575 (Based
on solids)
475-550 (Based
on solids)
575-700

3500-8500

DER 664
DER 667
EAX-55

875-975
1600-2000 Based
on solids

(95-105)
2500-10000

DER 668
DER 669
DER 670MK 75
DER 670
T-75
DER 670
X-75
DER 670
MK-75
DER 671
XM-75
DER 671
T-75

2000-3500
3500-5500
425-475 based on
solids
425-475 based on
solids
425-475 based on
solids
475-575 based on
solids
475-575 based on
solids
475-575 based on
solids

(120-140)
(135-155)
3000-8000

10000-20000
(68-80)
1070-2270
1070-2270
(51-61)

1000-4500
3500-8500
(80-90)

2000-10000
4000-14000
4500-9500
5500-12000
7000-16000
17

glycidyl ether
Semisolid DGEBA resin for
adhesives and coatings.
IR No4-1-11
DER 337 supplied at 90% solids in
xylene
Brominated epoxy resin, 18-20% Br
DER 511 supplied at 80% solids in
acetone
DER 511 supplied at 80% solids in
MEK
Brominated epoxy resin based on
tetrabromo-bisphenol A, 44-48%
Br. IR No.4-1-17
Solid DGEBA RESIN
Low melting DGEBA resin
Low melting DGEBA resin
DER 661 with narrower m.p. and
WPE ranges
DER 661 supplied at 80% solids in
acetone
DER 661 supplied at 75% solids in
MEK
DER 661 PR supplied at 80% solids
in acetone
Solid DGEBA resin. Slightly higher
m.p. than DER 661
Solid DGEBA resin
DER 667 supplied at 55% solids in
xylene and Dowanol EE acetate
(1 : 1)
Solid DGEBA resin
Solid DGEBA resin
DER 660 supplied at 75% solids in
MIBK
DER 660 supplied at 75% solids in
toluene
DER 660 supplied at 75% solids in
xylene
DER 661 supplied at 75% solids in
MIBK
DER 661 supplied at 75% solids in
MIBK and xylene (65 : 35)
DER 661 supplied at 75% solids in
toluene

DER 732

305-335

55-100

DER 736

175-205

30-60

Dow BGE

143

Diglycidyl ether of propylene glycol

(n=9). IR No.4-1-35
Diglycidyl ether of propylene glycol
(n=9). IR No.4-1-34
Butyl glycidyl ether. IR No.13-1-2.

DOW Epoxy Novolac

Number

Epoxy Equivalent
weight

DEN 431

172-179

DEN 438

176-181

DEN 438
A-85
DEN 438
EK-85

Viscosity,
centipoises at
25 (Durrans
m.p., Deg.C)
1400-2000
at
52 Deg.C
35000-70000 at
52 Deg.C
500-1200

176-181 Based
on solids
176-181 based on 600-1600
solids

Comments and representative

IR spectra
(Appendixes 4-1 and 13-1)
Polyglycidyl either of phenol
formaldehyde novolac IR No.4-1-25
Polyglycidyl either of phenol
formaldehyde novolac IR No.4-1-25
DEN 438 supplied at 80% solids in
acetone
DEN 438 supplied at 85% solids in
MEK

DOW Experimental Resins

Number

Epoxy Equivalent
weight

QX 2174

226-238

QX 2174A80
QX 2174.1

Viscosity,
centipoises at
25 (Durrans
m.p., Deg.C)
(55-60)

226-238 Based
on solids
230-245

(65-75)

QX 2221

182-188

500-700

QX 2232

137-144

17000

QX 2242.1

6340-38800

18

Comments and representative

IR spectra
(Appendixes 4-1 and
13-1)
Low melting, solid epoxy novolac
resin. Similar to DEN 438 but
higher functionality. IR No.4-1-25.
QX 2174 supplied at 80% solids in
acetone
Low melting, solid epoxy novolac
resin. Higher functionality.
IR No.4-1-25.
DER 331 diluted with cresyl
glycidyl ether
Blend of 80 parts DEN 438 with 20
parts of vinylcyclohexene dioxide
High molecular weight copolymer
of bisphenol A and epichlorohydrin
supplied at 40% solids in MEK
(Phenoxy)

QX 2242.2

627-1760

QX 2380

214-221

5000

QX
2633.12
QX
2633.14
QX
2633.17
QX
2633.18
QX
2633.19
QX 2638.6

375-415

(52-60)

186-192

11000-14000

193-203

16000-22000

High molecular weight copolymer

of bisphenol A and epichlorohydrin
supplied at 40% solids in MEK
(Phenoxy)
High molecular weight copolymer
of bisphenol A and epichlorohydrin
supplied at 32% solids in Dowanol
EE Acetate (Phenoxy)
Flame retardant resins. DGEBA
resin diluted with a Br containing
diluent. 16-18% BR
Low molecular weight, solid
DGEBAresin
Liquid of DGEBA resin. Modified
for faster gel with amines
High viscosity DGEBA resin

QX 2242.3

1290-2270

195-205

18000-35000

High viscosity DGEBA resin

198-220

23000-40000

High viscosity DGEBA resin

QX 2638.7

194-210 Based
on solids
194-210

QX 3441.4

450-550

QX 3441.4
A-80
QX 3441.5

450-550 Based
on solids
550-625

QX 3442.1

330-350

QX 3450

225-300

QX 3476

135

2200-5800

QX 2638.7 supplied at 85% solids

in MEK
250000-550000 Polyglycidyl ether of Phenol
at 52 Deg.C
formaldehyde novolac. Higher
functionality than DEN 438.
IR No.4-1-25.
(65-80)
Solid, flame retardant epoxy resin.
Contains 13.5 to 14.5% Br. For
NEMA FR 4 laminates
QX 3441.4 supplied at 80% solids
in acetone
(80-90)
Higher Br (22-24%) than QX
3441.4. Also for NEMA FR-4
laminates
(51-61)
Semisolid epoxy resin containing 44
to
48%
Br.
Based
on
Tetrabromobisphenol A., Higher
purity than DER 542
13000-65000 at Liquid epoxy resin containing 2438 Deg.C
26% Br
7000 at 70 Tetraglycidyl ether of bisresorcinol
Deg.C
F. Tetrafunctional epoxy resin.
IR No.4-1-20.
19

SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND
PROFITABILITY PROJECTIONS
Economic capacity

300 tonnes per annum

Project cost

: Rs.216 lakhs

Assessment of project cost

1.

Land

S.No.

Description

1.1
1.2

Cost of land of one acre at Rs.5.5 lakh per acre

Cost of levelling, laying internal roads/fencing and
compound wall
Subtotal

2.

6.050

Building

S.No.

Description

2.1
2.2

Factory building of area 320 sq.m. at Rs.3200/sq.m.

Non-factory building of area 50 sq.m.at Rs.4500/sq.m.
Subtotal

3.

Cost
Rs.in lakhs
10.24
2.25
12.49

Cost of Plant & Machinery

S.No.

Description

3.1
3.2
3.3
3.4

Cost of basic plant and machinery

Instrumentation and control
Pipelines and valves
Structurals for erection
Subtotal
Octroi, excise duty, sales tax, etc.at 12%
Packaging and insurance charges (2%)
Transportation charges (2%)
Machinery stores and spares (2%)
Foundation charges (2%)
Installation charges (2%)
Total cost of plant and Machinery

3.5
3.6
3.7
3.8
3.9
3.10

Cost
Rs.in lakhs
5.50
0.55

20

Cost
Rs.in lakhs
44
3.3
4.4
2.2
53.9
6.47
0.88
0.88
0.88
0.88
0.88
64.77

4.

Technical know-how fees

5.

Miscellaneous fixed assets

S.No.
5.1.
5.2.
5.3.
5.4.
5.5.
5.6.
5.7.
5.8.
5.9.
6.

Rs.2 lakhs

Description
Electrification
Steam boiler and auxillaries
Water storage tank, borewell etc.
Fuel storage tank
Laboratory equipment
Office machinery & equipment
Material handling equipment, packaging machinery,
weigh balance, etc.
Diesel generator
Effluent treatment
Total
Preliminary & Pre-operative expenses:

S.No.

Description

6.1.
6.2.
6.2.1
6.2.2
6.2.3
6.2.4
6.2.5
6.2.6
6.2.7

Preliminary expenses
Pre-operative expenses:Establishment
Rent rates and taxes
Travelling expenses
Interest and commitment charges on borrowings
Insurance during construction period
Other preoperative expenses and deposits
Interest on deferred payment
Total

Cost
Rs.in lakhs
3
4.5
0.8
1.3
0.8
1.50
1.50
5
1.20
19.6
Cost
Rs.in lakhs
0.8
0
0.8
0.8
1.40
7
1.2
0
0
12

7.

Provision for contingency

Rs. 7.3 lakhs

8.

Working capital margin

Rs. 90.43 lakhs

9.

Total project cost

Rs.215.78 lakhs
Say Rs.216 lakhs

10.

Means of Finance

Promoter's contribution
Term loan from financing institutions
Total project cost

Rs.86 lakhs
Rs. 130 lakhs
Rs.216 lakhs

21

11.

Financial statements

Variable cost

Rs. in lakhs

Raw material and utilities

Spares and maintenance
Selling expenses
Total variable cost (A)
B

830.48
3.95
63
897.43

Fixed cost

Salaries and wages

Interest on term loan and working capital loan
Depreciation
Administrative expenses
Total fixed cost (B)

9
72.18
8.87
35.1
125.15

C.

Total cost of production (A+B)

1022.58

D.

Selling price per kg. (in Rupees)

390

E.

Annual sales turnover

1170

F.

Net profit before tax (E-C)

147.42

G.

Breakeven point in %

47%

22

SECTION XI
SWOT ANALYSIS
Strength

Growing demand

Weakness

Small capacity plants

Lack of global competitiveness

Opportunity

Introduction of newer grades

Threat

Imports

23

SECTION XII
FACTORS INFLUENCING THE POSTION FOR A NEW INDUSTRY AND
RECOMMENDATIONS
The import of Epoxy resin is likely to continue in view of the price factors and the lack of
global competitiveness of the Indian units.
In recent times, major investment have been made by Petro Araldite Pvt. Ltd., in setting
up a large capacity Epoxy resin unit in the country.
However, the Indian units face problems in capacity utilisation due to imports

24