HINDALCO INDUSTRIES LIMITED UNIT: BIRLA COPPER, DAHEJ
A Report on
Market Study and Vendor Analysis of Hydrated Lime
“
Prepared by,
”
Verified by,
Kiran Prachand
Ajaypal Singh Bedi
Sr. Officer (Materials)
DGM (Materials)
Submitted to,
R K Gangopadhyay HOD (Materials)
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Index
Sr. No.
Content
Page No.
1)
Introduction
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2)
Manufacturing process of Hydrated Lime
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3)
Market Study of Hydrated Lime:
6
4)
Vendor Visit and Analysis
8
5)
Observations
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6)
Suggestions and Recommendations
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7)
Conclusion
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1. Introduction Hydrated Lime Hydrated lime is mainly composed of Calcium dihydroxide Ca(OH)2. It is obtained by hydrating quicklime (essentially calcium oxide CaO) using specific equipments called hydrators. Quicklime is manufactured by burning limestone of very high purity (made of calcium carbonate CaCO3) at temperatures around 900°C in dedicated kilns. Hydrated lime is the reaction product of quicklime and water The major application of Hydrated Lime is as follows
Water Treatment Plant
Effluent Treatment Plant
pH Control
Paint Industries
Petroleum refining Industries
Food Industries
Leather Industry
Paper Industry
Pesticides
Fertilizers
Metallurgical Industries (Copper, Aluminum, Steel, Iron, etc)
Marble/Granite Cutting
Glass Industry
Pharmaceutical Industry
Cement paints
Bleaching Powder
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Di Calcium Phosphate manufacturing
Rubber Industry
Road making and construction
Sugar Industries
2. Manufacturing process of Hydrated Lime The detail manufacturing process of Hydrated Lime is as per diagrm-1.
Diagram-1: Pictorial representation of Manufacturing of Hydrated Lime
A Lime stones is collected from mines, which is then heated in the Lime Kiln to above 825 °C (1,517 °F), a process called calcinations or lime-burning, which makes quick lime. Quick lime (CaO) when hydrated or slacked with water produces hydrated lime [Ca(OH)2]. The reaction is strongly exothermic and is associated with evolution of 380 to 490BTU/lb of lime. The reaction can be represented as:
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CaO + H2O
Ca (OH)2 + heat
⇒
Ca (OH) 2 + heat
CaO+ H2O vapor
⇒
There are many forms of hydrated lime, the main distinguishing feature being the amount of excess water they contain. However the product available in the market is 85% and 90% Hydrated Lime. Below 85% hydrated lime is low purity material while above 90% is high purity material. Hydrated Lime is very fine white colored powder. The material can generally packed the 40kg bags, or Jumbo bags. This can also be transferred through Bulk Tankers as per specific requirements. Below is the details flow chart of manufacturing process of Hydrated Lime
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3. Market Study of Hydrated Lime: Due to availability of the Major Raw material (Lime Stone), industry is situated in Rajasthan, mainly North west side of Rajasthan. The market is equally divided between Manufacturers and Traders. It is also possible that traders might supply the material at the low cons than the manufacturer, but the quality of the product may differ since they source the material from different manufacturer. The main areas where the manufacturing facilities are found like Piparcity, Ransigaon, Hariadana, Bhilara towards Jodhpur-Jaipur National Highway and Manakpur towards Jodhpur-Nagaur. Piparcity is main capital for the industry where major manufacturers are located. 3.1) Piparcity: Piparcity is 65 km away from Jodhpur. The major market is situated at the belt of Piparcity. Since the availability of the raw material (Lime Stone) towards this area is more, so here both the quick lime and hydrated lime manufacturing plants are located to this area. However the quality of the raw material is slightly left behind as compared the Manakpur belt, thus the product quality slightly differ. Piparcity belt is distributed to the long area of approx 30-40kms towards Ransigaon. Some of the manufacturers who have manufacturing facilities towards Piparcity belt are as below. 1. Shivam Chemicals 2. Aditya Chemicals 3. Sigma Minerals Limited 4. Ankur Minerals Limited 5. Perfect Hydrochem 6. Malborough Polychem 7. RajLaxmi Chemicals 8. Sanmati Lime 9. Rama Chemicals
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10.Shyam Lime 11.Classic Hydrochem 12.Vikash Lime 13.Kushal Chemicals 14.Raj Chemicals and many more However the big manufactures towards this belt are Sigma Minerals Limited, Malborough Polychem, Shivam Chemicals, and Aditya Chemicals. 3.2) Manakpur Manakpur is situated in Nagaur tehsil and located in Nagaur district of Rajasthan and it is approximate 120kms from Jodhpur. Towards Manakpur, there are many Lime Kilns are located than manufacturing facilities of Hydrated Lime. Malborough Polychem has the major Lime Kilns towards this side. Quality of Lime stone is slightly good as compared to Piparcity Belt. Some of the manufacturers who has the manufacturing facility towards Manakpur belt are as below 1.
Sigma Minerals Limited
2.
S R Chemicals
3.
Jannat Lime
4.
Tara Minerals and Chemicals
5.
Brij Enterprises and many more
The big manufactures towards this belt are Sigma Minerals Limited, and Tara Minerals & Chemicals.
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4. Vendor Visit and Analysis There are 10 existing suppliers through which we are getting the supply as given below. 1. Brij Enterprises 2. Shivam Chemicals 3. Aditya Chemicals 4. Classic Hydrochem 5. Sanmati Lime 6. Rama Chemicals 7. Malborough Polychem 8. Tara Minerals 9. Shyam Lime 10. Maruti Chemicals 11.
D S Chunavala
Out of the 10 suppliers, D S Chunavala and Maruti Chemical are traders and their offices are located in Bharuch and Ahmadabad respectively. In addition to above, there are 2 existing suppliers Jannat Lime and Rajlaxmi Chemicals to whom trial order were placed. 4.1) Existing Vendors a) Brij Enterprises: Manufacturing facility of Brij Enterprise is located at approximate 40 Kms from Jodhpur City, near to the extreme right end of the new IIT Jodhpur Campus towards Manakpur. The approximate production of the Hydrated Lime is 40-50 MT/day. There are 2 plants at the location and it purely follows traditional process of manufacturing since many activities are done manually. It is small scale manufacturer. Mr. Bunty who is the proprietor of the firm manages the plant himself by visiting the plant on every alternate day.
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b) Shivam Chemical: Shivam Chemical has one of the big manufacturing facilities at Piparcity with approximate daily production of 150-200 MT. Plant has equipped with Lime Kilns too. It is located at Jodhpur-Piparcity Highway and is very much easy for transportation due to location. Mr. Rehman handles the plant Operations and daily dispatches at the plant. c) Aditya Chemicals The location of the plant is just besides the Shivam Chemicals at JodhpurPiparcity Highway and closer towards the Piparcity. Aditya Chemicals has 2 units at the Piparcity. Aditya Chemical is the major manufacturer at Piparcity location with approximate production of 200-250 MT/day. Mr. Somani who is Manager at the plant handles the Operations and dispatches. The plant has direct source of raw material for Hydrated Lime. It is also observed that plant has facility of Tanker supply. d) Classic Hydrochem Classic Hydrochem is one of medium scale manufacturer and supplier for Hydrated Lime. Classic Hydrochem and another manufacturing facility by name of Perfect Hydrochem. Both plants are located near Ransigaon Piparcity belt and nearest to each other. Both the plants has equal production faculty and approximate production capacity taken together is 80-120 MT/day. Mr. Ramesh who is proprietor of both the firm has one additional location at which erection work is going on which will soon be functional. e) Shyam Lime It has facility location just behind the Perfect Hydrochem plant. The approximate production of the plant is 25-30MT/day. Mr. Ghanshyam who is the owner of the firm has its own mines and rented Lime Kilns. The plant operations are managed by Mr.Ghanshyam’s Cousin who lives at premises of the plant itself. The plant is slightly inside from the highway.
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f) Sanmati Lime It is facility arranged and properly managed plant. The plant is fully automated with only single labor for monitoring. The facility is well prepared for monsoon arrangements with tin sheds at all sides of the plant. Thus during monsoon season, operation of the plant will not be affected. The approximate production of the plant is 50-60MT/day. Mr. Arun who is owner of Sanmati Lime has one more firm named Mahavir Lime which is approximate 30 Kms away from the this facility towards Bhilara g) Rama Chemicals The plant is just besides the Sanmati Lime. Mr. Amit who is proprietor manages the firm as a family business and one supervisor who handle the plant operations. The approximate daily production of plant is 50-60 MT. It has one of the good manufacturing set up at the location with the good quality of material in the market. h) Malborough Polychem It is one of the big manufacturers in at the Ransigaon locations towards Piparcity belt. It has big manufacturing facility and one of the major suppliers for Hydrated Lime. It has highest number of Lime Kilns and one of the major suppliers of Raw Material for Hydrated Lime to the other small manufacturer. Malborough has a major Lime Kilns towards Manakpur. The approximate production of Hydrated Lime is 200-250 MT/day i) Tara Minerals and Chemicals Pvt. Ltd. This is one of the professionally managed and big manufacturers of Hydrated Lime. Manufacturing facility is located at approximate 100kms from Jodhpur towards Manakpur. The approximate production of the plant is around 10-150 MT/day. The firm is owned by Mr. Boob and his brother. Mr. Harsh who is the son of the director manages the marketing and dispatches.
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j)
Rajlaxmi Chemicals It is one of the medium scale manufacturer suppliers of the Hydrated Lime and supplying the material to Hindusthan Zinc Limited. It is major supplier of Lime Bulk Tanker with approximate 3 tankers per day. The daily production of the plant is 100MT. There are 2 plants, one is located at the Ransigaon and another at Manakpur. Firm is managed by Mr. Mahesh Banjara and his father located at Piparcity. They also owned 2 other firms for the same products.
k) Jannat Lime It is very small scale manufacturer supplier of Hydrated Lime has a manufacturing location at Manakpur. The approximate production of plant is 1520 MT/day. The plant has also equipped with its own Lime Kilns at the same premises. Plant is managed by Mr. Farid and his brother.
4.2) New Vendors 1. Sigma Minerals Limited It is big manufacturer for Hydrated Lime at Jodhpur. There are 2 units; one is located at Piparcity having 2 plants and other at Manakpur having plant. The total capacity of the production all together is 350-400 MT/day. There is also capacity expansion project is going on at Manakpur location with additional capacity of 300 MT/day. The company is limited firm with Annual turnover of 65 crore and has approximate employee size 250. The corporate office is located at Heavy Industrial Area Jodhpur. The corporate office is well dedicated for Marketing and dispatches. The supplies are done in 40 kg bags and Jumbo bags. The bulk tanker can also be supplied by firm. 2. Ankur Minerals Pvt Ltd. It is one of the medium scale manufacturer supplier of Hydrated Lime. The plant if located at Ransigaon. The approximate capacity of the plant is 80 MT/day. The office is located at Shashtri Nagar Jodhpur.
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3. Vikash Lime It is small scale manufacturer supplier. It is supplying the material to us trough Maruti Chemicals. The approximate manufacturing capacity of plant is 40 MT/day. 4. Kushal Chemicals It is located at Piparcity and besides Aditya Chemicals. It has continuous process linked to each other that is manufacturing of quick lime and Hydrated Lime. Lime Kilns and Hydrated Lime plant is at the single premises. The approximate capacity of the production is 40-50MT/day. 5. Raj Chemicals It has fully automated plant having lime kilns and hydrated lime plant connected to each other. The approximate plant capacity is 30-40 MT/day. 6. Vijay Minerals It is the small scale manufacturer having the plant at Piparcity and capacity of approximate 40 MT/Day
There are many manufacturer of the Hydrated Lime at the Piparcity and Manakpur belt. All the manufacturers have the similar facility. The capacity only differs in the number of Hydrator. However the suppliers which can be categorized as being manufacturer are Sigma Minerals Limited, Malborough Polychem, Aditya Chemicals, Shivam Chemicals, and Tara Minerals Pvt. Ltd. Also the suppliers which can be categorized as medium manufacturers are Sanmati Lime, Rajlaxmi Chemicals, Classic Hydrochem, Ankur Minerals. Rest all has approximate equal manufacturing capacity in the complete market.
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5. Observations The complete lime market has perception about Hindalco Industries Limited including existing suppliers that company is low paying industry. However, the major advantage working with Hindalco for suppliers is payment term. Payment releases for the supplies on time with agreed terms of 30 to 45 days which benefit the suppliers for cash flow. Another advantage is to have purchase order of Hindalco Industries Limited. Documents itself has very much importance for the suppliers to attract the customers since associating with major industry like us is helpful for the suppliers to grab the business in the market. We are being one of the big industry in India, everyone try to associate with us even by compromising the cost. It is also observed that few years ago, it was very difficult to enter into our unit or to get it registered as vendors. However at the present situation, it has perception in the market that order can be grabbed just slightly breaking the cost at lower level. But it will not give guarantee of the supplies as and when we required. Due to low cost and heavy detention of the vehicles from our side, it becomes difficult to arrange transportation and also truck drivers avoid loading the materials for our location. Due to such cases, truck drivers are now charged additional detention from suppliers even if the vehicle is unloaded within 24 hours since documents does not make entry of the reporting time of the vehicle. Due to detention of the vehicle suppliers also do not keep the supplies in regular unless they get the confirmation that there is no waiting or detention of vehicles.
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6. Suggestions and Recommendations A. Without Financial Implications for Company 1. To provide the schedule of the dispatch of the vehicle as per our requirement. This will helpful in arranging the vehicles. Schedule includes the particularly the days of dispatched for week or for a month. This will also to avoid congestion at the plant for vehicle unloading 2. It is suggested that to provide the reporting time of the vehicle at the material gate on the documents in addition to. This will give the actual detention time of the vehicle of the vehicle. So that it will benefit the supplier to negotiate with the transporter. 3. To provide the receipt confirmation of vehicle with actual quantity of the receipt. 4. To provide lab chemical report of the material for purity 5. To provide the details of the payment such as invoice number against which payment is released 6. To provide the tentative planning for the requirement of the material for a week. B. With Financial implications on Company 1. For price changes, the other cost such as labor cost, cost of transportation for raw material, packing cost, vehicle detention etc also should be considered in addition to Pet Coke and diesel price
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7. Conclusion Lime market is very saturated market with large number of small scale and medium scale manufacturers. Due to easy availability of the raw material and continuous demand, many of the manufacturers have established the business as unorganized shops in the market. There are equal numbers of traders also operated in the market which can provide the material at cheaper cost but compromising the quality of the product. There are mainly two grades of the Hydrated Lime available in the market i.e. 85% and 90%. The purity of lime is lies between 85% to 90% water content. More than 90% of the material is high purity grade material and below 85% is low purity grade material. There is also a good demand of low purity material in the market. The supply of the material is mainly depending on the transportation.
Since
availability of the quantity of material is in abundant quantity and transportation is at limited scope. Thus in the season period, there is monopoly of the transporters. Providing the tentative schedule of the requirement of the vehicle for a week and designated days to arrange the vehicle will help suppliers to negotiate with transporters and to arrange the vehicle for regular supplies. This will also benefit in reducing the detention and congestion of the vehicle at our end. All our existing vendors leaving one or two are capable enough for fulfilling our day to day requirement of the material. Providing the reporting time of vehicle at the gate in addition to in and out time will help suppliers to correctly calculate detention charges. This is help to save cost on detention for suppliers and for us to get the regular supply since detention cost is additional earning for the transporters without any justification at the present situation. It is said that for effective supply chain, there should be good relationships there should be good relationship among the chain partners. Supply chain starts from Suppliers itself. Thus for strengthening the relationship with suppliers, we should address the issues faced while working and mutually understand the requirements of the process.
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