International Flavours & Fragrances opens new facility in Gurgaon

STRENGTHENING PRESENCE:

International Flavours & Fragrances Inc (IFF) has strengthened its presence in India with the opening of a new facility in Gurgaon. The facility, which is spread over 20,000 square feet, will house creative, technical, sensory, and sales professionals for the company's flavours business unit. The new facility will primarily develop flavours for customers in the National Capital Region, including companies marketing prepared foods, sweets, beverages and dairy products.

 "Our increased presence in India furthers our ongoing strategy to expand our geographic reach and create infrastructure to serve emerging markets, especially those enjoying the most dynamic growth rates and demographics," said Mr. Doug Tough, Chairman and CEO. "IFF has an 80-year history in India, and we are pleased to expand our activities in this attractive region. This new facility, together with our other investments in India and China, underscores our faith in the region, the strength of our Asian teams, and our unwavering commitment to serve our customers' present and future needs."

 IFF is a global major in manufacturing of flavouring agents and fragrances. The investment follows announcements of the opening of a new creative centre in Shanghai and the groundbreaking of two new manufacturing plants in Asia: a flavours production facility in Guangzhou (China) and a liquid flavours and fragrances compounding site in Singapore. The company also recently opened a new facility in Dubai and expanded CapLock capacity in its Haverhill, UK plant.

 Indian operations

The company, which is present in India through a wholly-owned subsidiary, International Flavours & Fragrances India, has two divisions which cater to flavours and fragrances segments respectively. The Indian operations currently contribute 3% to the global turnover, which stood at around US$3-bn. According to IFF India's Managing Director Mr. Sridhar Balakrishnan, the firm's sales have grown 16% year-on-year in the last five years.

 The flavours market in India is estimated to be around Rs. 1,200 crores per annum, growing at 12% annually. The firm has been expanding its presence in the last few years. It has two manufacturing facilities in Chennai and one Jammu. It also has eight contract manufacturers across India.

 Mr. Hernan Vaisman, Group President, Flavours, added, "This is a very exciting time for our industry in India. Like a lot of working families and busy individuals around the world, India's consumers are not only looking for great, authentic taste and convenience, they are also looking for healthier options in the foods they eat. We have extensive in-house talent creating the best tastes for the Indian market as well as excellent R&D capabilities and technologies that have already helped customers in other regions reduce sodium, sugar, and fat in their products. We are firmly committed to supporting our customers in this dynamic region."

 The emerging markets, which include India, China, Indonesia, Russia, contributed around 46% to the global turnover of IFF.

 UNFAIR TRADE PRACTICES

Aluminium phosphide tablet makers move tribunal against CCI fine

 The order of Competition Commission of India (CCI) imposing a penalty of Rs. 317.91-crore on aluminium phosphide tablet manufacturers for allegedly forming a cartel and manipulating price has been challenged before Competition Appellate Tribunal (Compat). Two firms – Excel Crop Care and Sandhya Organics Chemical – have challenged the findings of the CCI before the Compat.

 Aluminium phosphide tablets are used as a rodenticide, insecticide and fumigant for stored cereal grains. It is used to kill small verminous mammals such as moles and rodents. Passing an order in April, the CCI had imposed the fine on three manufacturers. The commission had imposed fine of Rs. 252.44-crore on United Phosphorus Ltd. and Rs. 63.90-crore and Rs. 1.57-crore, respectively, on Excel Crop Care and Sandhya Organics. The penalty was computed on the basis of 9% of the average of three years turnover on the three producers.

 The CCI had ordered a probe after receiving complaints from the Food Corporation of India (FCI). The CMD of FCI had informed the fair trade regulator in February 2011 about the rise in cost of procurement of aluminium phosphide tablet due to formation of cartel by the manufacturers. The PSU had further alleged that manufacturers quoted incidental rates and inflated the price in bids invited for preservation of food grain in the central pool.

PROJECT IMPLEMENTATION

MRPL PP project construction affected; commissioning likely to go into 2013

Work on the 440-ktpa polypropylene (PP) project of Mangalore Refinery & Petrochemicals Ltd. (MRPL), which is part of a Phase III refinery expansion project, has been affected due delay in handing over of the leveled site to the contractor, free of encumbrance. The delay has been caused due to relocation of existing underground pipelines in the new proposed area for the PP unit and re-routing of the existing road required for site grading.

 

While the project has achieved a physical progress of 79.3% as of April, 2012, as against the planned 96.3%, construction progress is lagging far behind at 36.6%, as against the scheduled 93.4%. The manufacturing progress also stands at a reasonable 95.6%, as against the scheduled 100%.

 

The project was sanctioned in July 2009, with a scheduled completion date of April 2012, but according to the Project Monitoring Report (up to April 2012) of Engineers India Ltd. (EIL), the project management contractor, the project is presently running behind by eight months with a completion deadline of December 2012. However, the project is likely to miss this revised deadline because of the delay in handing over of the leveled site and a fresh deadline will be worked out after the graded site is made available.

 

Karnataka government sanctions special incentive package

The PP unit is just a part of the Rs. 12,160-crore Phase-III Refinery Project, which involves setting up of a 3-mtpa crude distillation unit/vacuum distillation unit (CDU/VDU), a 2.2-mtpa fluidised catalytic cracking unit (FCCU), a 3-mtpa delayed coker unit (DCU), a 3.7-mtpa diesel hydrotreating unit (DHU), a 0.65-mtpa coker heavy gas oil hydrotreating unit (CHTU) and a 70-ktpa hydrogen generation unit, among other facilities.

 

To give a boost to the project, the Government of Karnataka has sanctioned a special incentive package, which includes:

1.Exemption from payment of entry tax on plant and machinery and capital goods during the initial period of four years from the date of commencement of project implementation;

2.Exemption from payment of entry tax on crude oil required for third phase, over and above the refining capacity of first and second phase, for a period of 15 years from the start of commercial production of third phase;

3.Exemption from Central Sales Tax (CST) for a period of 15 years from the date of commencement of commercial production of third phase for all interstate sales made out of the Phase-III throughput.

 

4.Interest-free soft loan at the rate of 100% of the eligible gross VAT during the first three years and thereafter at 60% of eligible gross VAT, on the sale of polypropylene, petroleum coke, LSHS, naphtha, LPG (incremental production), mixed xylenes and reformate to non-SEZ units for a period of 15 years to be repaid in 15 years, in annual installments thereafter, limited to Rs. 500-crore per annum.

BATTLE FOR CONTROL

High Court refuses stay on share transfer of Haldia Petrochemicals

 The Calcutta High Court has refused to pass an interim stay on any proposal for transfer of shares of Haldia Petrochemicals Ltd. (HPL) to IOC or ONGC. Justice Indira Banerjee, while refusing to pass an interim stay on a plea by Winstar India Investment Company Ltd., promoted by The Chatterjee Group (TCG), kept the order in abeyance till June 25 so it could appeal against the order before a higher court. The court, however, did not intervene on the question of Winstar's submission that it did not have any representation on the board of HPL, despite having a 7.5% stake in the company.

 Winstar had moved the court claiming that a board meeting of HPL was scheduled to be held on June 19 to allow transfer of shares to IOC or ONGC. Winstar claimed that it held 7.5% in HPL, but had no representation on the board of the company and as such could not have a say in the proceedings. The board meeting saw the resignation of Managing Director, Mr. Partha Bhattacharyya and Mr. Sumantra Chowdhury taking over on behest of the West Bengal government.

 The West Bengal government and TCG, promoters of HPL, the largest petrochemical company in West Bengal, are locked in a bitter battle over transfer of shares of the company.

 TCG had moved the International Court of Arbitration in Paris on the issue of transferring shares of HPL, as it wanted to buy 155-mn shares to control majority stake in HPL, which was rejected by the West Bengal government. TCG, along with its associate companies, holds 34.07% in HPL.

 SPECIALITY CHEMICALS CONCLAVE

Clariant experts highlight latest trends in Indian personal care and colorants sectors

 The impact of the growing preference of bio-based products on the personal care industry and the regulatory changes in colorants were highlighted by experts from Clariant at the recently concluded 'Specialty Chemicals Conclave 2012' organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in Mumbai recently.

 In his presentation on "Trends in the Indian personal care market", Dr. Alexander Snell, Head of Business Unit Industrial & Consumer Specialties, Clariant Chemicals (India) Ltd emphasised the stability of the personal care market despite the economic crisis, and India's position as one of the countries with the highest global growth rates for personal care products.

Dr. Snell identified the key trends impacting India's personal care market as:

1.Growing preference for bio-based products;

2.Faster growth for higher value-added brands;

3.Younger generation's preference for quality global brands;

4.Slow change from old formats (bars, oils, talcum powder) to more modern formats (liquid soap, hand sanitiser, 2-in-1 shampoos, deodorants); and

5.Growth of men's grooming market (creams, deodorants).

Dr. Snell said Clariant is responding to these trends with its new bio-based product line, 'Velsan', which meets requirements for bio-based products and also offers additional value such as skin repair, and exceptional moisturising and hair repair qualities.

Regulatory issues affecting pigments industry

Later, Dr. Dileep Wakankar, Head of Product Stewardship India – Clariant Chemicals (India) Ltd., spoke about the regulatory issues affecting the pigments industry. He outlined the stringent regulations in Europe, America and China and pointed to the differences with India's current restrictions.

 "It is only a matter of time till similar regulations and restrictions will be enforced in India in the interest of human health and environmental safety. To ensure sustained business the country's colorant industry needs to prepare itself for compliance with such regulations," he commented.

TACKLING INFECTIONS

Copper Front India permitted to use antimicrobial copper brand and marks

The International Copper Promotion Council (India) has awarded Copper Front India P. Ltd. the permission to use the 'Antimicrobial copper' (Cu+) brand and marks on their products. 'Antimicrobial Copper' is the only touch surface material to have US Environmental Protection Agency (EPA) registration, which supports the claim to continuously kill more than 99.9% of the bacteria that cause healthcare-associated infections (HCAIs) within two hours of contact.

Copper is the active, microbe-killing ingredient. It can be combined with other metals to create alloys such as brass and bronze. These materials can be used to create a wide variety of antimicrobial touch surfaces suitable for a range of products and applications.

Leading manufacturers of hospital equipment, furniture and fittings use this mark to indicate that their products contain 'Antimicrobial Copper'.

Copper Front has become the first manufacturer in India to be awarded such a certification.

COMPOSITES

Toho Tenax partners with Hindoostan Tech to market carbon fibre textiles

 

Toho Tenax Co., Ltd. (Japan) has announced that it will develop and market carbon fibre fabrics for India's composite industry in collaboration with Hindoostan Technical Fabrics Ltd. (HTFL), a carbon and aramid textile manufacturer wholly-owned by Hindoostan Mills, Ltd., a textile company which is part of the Thackersey Group.

 

Under the partnership, Toho Tenax will supply its proprietary Tenax carbon fibre to HTFL for weaving into quality textiles. The two companies will jointly market products to manufacturers of composite materials and reinforced sheets. The focus of the collaboration will be on the Indian composite industry serving industrial domains, including transportation (automotive, aerospace and railway); wind power; sports and leisure; medical equipment; construction reinforcement and retrofitting; electronics (computer and mobile phone housings), as well as a host of other industrial applications.

 

Toho Tenax, which already supplies chopped carbon fibre in India, sees significant potential in the nation's carbon fibre market, and is preparing to meet surging demand from various customers for highly valued intermediate material including prepregs.

 

"The collaboration between Hindoostan Technical Fabrics, with its advanced textile technology and strong presence in the Indian market, and Toho Tenax, the world's second largest carbon fibre maker with a proven track record in the global carbon fibre composite market, will enable us to quickly secure a stronger market position in India," said Mr. Norio Kamei, president of Toho Tenax and head of the Teijin group's carbon fibres and composites business.

 

Markets growing 20% annually

India's composite industry has recorded robust growth of about 20% per annum over the last five years. Tenax carbon fibre textile is already used globally in a wide range of composite products, such as automotive parts, wind-turbine generator blades, medical machinery and machine tools.

 

OVERSEAS PRESENCE

Kansai Nerolac acquires 68% stake in Nepal paints firm

Kansai Nerolac has acquired 68% stake in one of the leading paint manufacturers in Nepal, Nepal Shalimar for Rs. 7.55-crore.

Considered in the 'top 5' suppliers in the country, Nepal Shalimar currently commands a market share of 8%. It had a turnover of NPR 20.57-crore (Rs. 12.34-crore) in 2010-11.

"With the acquisition of this leading paint maker in Nepal, we expect to capture nearly 15% market share in the current fiscal year," said Kansai Nerolac's Managing Director, Mr. H.M. Bharuka. "We have been exporting our products to Nepal, but due to heavy duties there, we could not expand our business there. To expand our footprint there, we were considering two options – either an acquisition or setting up a manufacturing facility. We will utilise the company's plant to manufacture the Nerolac range of products, which are currently exported to Nepal," he added.

Kansai Nerolac will also provide a loan of around Rs. 6.12-crore to fund the working capital requirements of Nepal Shalimar, he said.

ANALYTICAL INSTRUMENTS

Waters initiates online ordering of its products

US-based analytical technologies major, Waters Corporation, is marking the 25th anniversary of the start of business operations in India, with the initiation of online ordering through a new order centre.

Scientists and customers can now search and order Waters parts, sample preparation products, chemistries and consumables online at www.waters.com/order. With the new order centre, Waters is introducing several new features designed to facilitate ordering and lower transaction costs by including the posting of real-time product availability, local currency pricing, available discounts, order tracking and special offers.

Scientists will now be able to select products of interest and easily share their cart with procurement professionals.

OVERSEAS INVESTMENT

Polyplex to invest in PET plant in Turkey; eyeing PTA project

 

Polyplex Corp. of India, the fourth largest producer of polyester film in the world, and the Investment Support and Promotion Agency of Turkey (ISPAT), have jointly announced the decision of Polyplex to select Turkey to support its global expansion to produce polyethylene terephthalate (PET).

 

The production plant to be built at Corlu, in the northwestern province of Tekirdag, at a cost of $150-mn, will employ 250 people and is a part of Polyplex's strategy to cooperate with its large scale industrial customers in Turkey and beyond. The plant will have capacity to produce 600,000-tpa of PET resin, of which 70-80% will be destined to export markets like the USA, Russia and Europe.

 

Polyplex is planning to begin the design and construction of the PET plant this year for completion by 2015. The facility will use locally available purified terephthalic acid (PTA) as feedstock to start operations, but is also considering an additional capital expenditure of $500-mn in the near future to produce this raw material.

 

Polyplex, with it's headquarters in Noida, has three manufacturing facilities: at Khatima, Distt. Udham Singh Nagar in Uttarakhand; at Rayong province in Thailand; and at Çorlu, in Turkey.

 

CALL FOR PAPERS

International conference on 'Innovation in Technologies for Processing of Rubber & Elastomers' to be held in Mumbai

 

The Polymer Processing Academy (PPA), which was established on 5 March 2011 in Mumbai to provide a single forum of all branches of polymer processing (plastics, rubbers, elastomers, fibres, coatings, adhesives etc.), is organizing an international conference on 'Innovation in Technologies for Processing of Rubber & Elastomers' in Mumbai on 26-27 October, 2012.

 

The PPA has invited Technical Papers on the following broad topics:

1.Importance of rheology and its understanding in enhancing the processing of rubbers & elastomers;

2.Compounding of rubbers & elastomers for improved processing;

3.Emerging processing technologies for rubbers & elastomers;

4.New developments in testing & evaluation;

5.Current status in R&D and polymer modification in rubbers & elastomers;

6.Innovations in reinforcements, additives and nanomaterials;

7.Emerging trends in recycling of rubbers & elastomers;

8.Green technologies and advances in sustainability issues; and

9.Shift in applications from rubbers to thermoplastic elastomers (TPEs).

 

For details contact:  Mr. Manu Patel, Chief Convener, Conference Secretariat: Attuned Polymers Laboratories, 308-312, Rajasthan Technical Centre, Patanwala Estate, LBS Marg, Ghatkopar (W), Mumbai 400086.  Tel: 022-25001566, 25004513; E-mail: manupatel31@yahoo.com, attuned03@yahoo.com.

 

NEWS IN BRIEF

Dumping probe on pentaerythritol imports from Saudi Arabia

The Government has initiated a probe into alleged dumping of pentaerythritol by Saudi Arabia. The Commerce Ministry's designated authority, the Directorate General of Anti-Dumping and Allied Duties (DGAD), has started an investigation on the basis of an application filed by Kanoria Chemicals and Industries Ltd. The chemical is mainly used in explosives and pharmaceuticals. The period of investigation is from April 2010 to June 2011, but the injury investigation will also cover the periods 2008-09, 2009-10 and 2010-11.

Govt. postpones implementation of cosmetics rules

India has delayed enactment of the Drugs and Cosmetics (fourth amendment) Rules 2010 to 1 October 2012, according to an announcement by the Ministry of Health and Family Welfare. The rules specify the requirements for registration and import of cosmetics in India.

 This is the second time that the government has delayed enactment of the changes. The original date for entry into force was 1 April 2011, but on 29 September 2011 this was put back to 1 April 2012.