Castor oil is used to manufacture range of derivatives using several processes. These derivatives can be classified in four categories
1. Primary
2. Secondary
3. Tertiary and
4. Complex
Depending upon the stages of production and reactions involved. Proven Technologies are available for primary and secondary level derivatives, while technology for tertiary and complex derivatives has to be imported and hence their development is very limited in India.
The derivatives of Castor oil have assumed great significance because of the need to go for value addition.
Castor oil derivatives can be segregated into several categories. However, the broad categorization would be in the following terms.
a) Modified Castor Oils and
b) Application Base Derivatives
Castor oil derivatives can be segregated into several categories. However, the broad categorization would be in the following terms.
a) Modified Castor Oils and
b) Application Base Derivatives
Indian Scenario
In India at present, there are few primary and secondary derivatives that are manufactured on commercial scale and relatively very small quantities of tertiary and complex derivatives are developed and produced in India.
In India at present, there are few primary and secondary derivatives that are manufactured on commercial scale and relatively very small quantities of tertiary and complex derivatives are developed and produced in India.
Castor Oil Derivatives, their estimated installed capacities TPA and names of major producers are summarized in table 1.
2-Octanol:
2-Octanol:
2-Octanol is an 8 carbon atom contaiing secondary octyl alcohol also known as Capryl Alcohol or 2-octyl alcohol which is mainly obtained as a by product of alkali fusion reaction of Castor oil in Sebacic acid manufacturing. It is an oily, refractive, transparent, colorless liquid with an aromatic and somewhat unpleasant odour.
Applications of 2-Octanol
- 2-Octanol is used for the manufacture of different plasticizers like its sebacates, adipate and phthalates-esters of different types with respective organic acids.
- It is used as an anti-foaming agent for urea formaldehyde
and poly-vinyl resins.
- 2-Octanol is used for the manufacture of different plasticizers like its sebacates, adipate and phthalates-esters of different types with respective organic acids.
- It is used as an anti-foaming agent for urea formaldehyde
and poly-vinyl resins.
- 2-Octonol is finding application as an organic solvent. Its main use is as solvent in rubber processing industry.
- In coal industry, it is used as floating agent. In farming chemical industry also it is used as floating agent and as for producing emulsifier.
- It is finding application in chemical fiber industry as fibre oil.
- It is also used in the manufacture of range of perfumery compounds by forming its esters-butyrates and acetates. It can also be used in the manufacture of methyl-hexyl ketone by oxidation.
Refined Glycerine
Glycerine is chemically-a tri glycerol (Molecular Formula: C3H5(OH)3), a colorless, thick transparent viscous liquid, generally without any smell but with sweet taste. It has sweet smell, is heavier than water, and mixes with water, methanol and ethanol at any proportion. It is insoluble in organic solvents such as benzene, chloroform, carbon disulphide and carbon tetrachloride, etc. It has Boiling point at 290oC and it is hygroscopic. Specific Gravity decreases with dilution by water.
Glycerine is available in different purity grades such as Technical, Industrial white (IW), Chemically pure
(CP) grade, and Refined grade etc. Its prices also vary according to its purity and grade.
Glycerine is chemically-a tri glycerol (Molecular Formula: C3H5(OH)3), a colorless, thick transparent viscous liquid, generally without any smell but with sweet taste. It has sweet smell, is heavier than water, and mixes with water, methanol and ethanol at any proportion. It is insoluble in organic solvents such as benzene, chloroform, carbon disulphide and carbon tetrachloride, etc. It has Boiling point at 290oC and it is hygroscopic. Specific Gravity decreases with dilution by water.
Glycerine is available in different purity grades such as Technical, Industrial white (IW), Chemically pure
(CP) grade, and Refined grade etc. Its prices also vary according to its purity and grade.
Applications of Glycerine
• Glycerine (also called glycerin or glycerol) is an alcohol that is used as a moisturizers in soap and lotions.
• Due to its sweet taste and it can be used as a food preservative and non-sugar sweetener.
• It has wide variety of applications in explosives manufacture (nitro glycerin), to water based adhesive, glycerol Esters, cream and lotions Lubricants (jet engine, refrigeration), Plasticizer for polyvinyl
Butyric (PVB), polyurethane Foam, dispersant, toothpaste, mouthwash, surface lubricants, pharmaceuticals, Alkyd Resin, liquid soaps, paints, cosmetics and in tobacco industries. Thus, Glycerine finds many more applications in wide variety of industrial and consumer products.
• Glycerine (also called glycerin or glycerol) is an alcohol that is used as a moisturizers in soap and lotions.
• Due to its sweet taste and it can be used as a food preservative and non-sugar sweetener.
• It has wide variety of applications in explosives manufacture (nitro glycerin), to water based adhesive, glycerol Esters, cream and lotions Lubricants (jet engine, refrigeration), Plasticizer for polyvinyl
Butyric (PVB), polyurethane Foam, dispersant, toothpaste, mouthwash, surface lubricants, pharmaceuticals, Alkyd Resin, liquid soaps, paints, cosmetics and in tobacco industries. Thus, Glycerine finds many more applications in wide variety of industrial and consumer products.
Dehydrated Castor Oil Fatty Acid (DCOFA)
Dehydrated Castor Oil Fatty Acid (DCOFA) is a secondary derivative manufactured from Dehydrated Castor oil (DCO). DCO fatty acids contain conjugated and non-conjugated (C 18) fatty acids as major components. Depending on the conjugation three different type products are commonly offered in the market.
Dehydrated Castor Oil Fatty Acid (DCOFA) is a secondary derivative manufactured from Dehydrated Castor oil (DCO). DCO fatty acids contain conjugated and non-conjugated (C 18) fatty acids as major components. Depending on the conjugation three different type products are commonly offered in the market.
Applications of DCOFA
• DCOFA is used in the manufacture of high quality surface coatings, dimmer acids and poly carboxylic acids.
• DCOFA is used to make epoxy resins, special automotive paints with good weathering resistance and water resistance, high class enamels for copper and aluminum windings, electrical varnishes, epoxy special glues with insulting properties.
• They are generally preferred for metal coating, durable printing ink, paint lacquers, etc;
• DCOFA is also used as high trans-trans acid for specialty chemicals through Kjedahl reaction. The specifications may be tailor-made as per the requirement of the client.
• DCOFA is used in the manufacture of high quality surface coatings, dimmer acids and poly carboxylic acids.
• DCOFA is used to make epoxy resins, special automotive paints with good weathering resistance and water resistance, high class enamels for copper and aluminum windings, electrical varnishes, epoxy special glues with insulting properties.
• They are generally preferred for metal coating, durable printing ink, paint lacquers, etc;
• DCOFA is also used as high trans-trans acid for specialty chemicals through Kjedahl reaction. The specifications may be tailor-made as per the requirement of the client.
Dimer Acid
The term dimmer acids is applied to the dicarboxylic acids formed by reactions of two or more C18 unsaturated fatty acids such as Oleic and Linoleic acids. The only higher dicarboxylic acids of commercial importance are unsaturated cyclic C36 dicarboxylic acids known as dimmer acids. Commercial dimmer acids are mixture of C36 dibaisc acids, also containing some trimer (C54), higher oligomers and also some amount of monomer acids (C18) saturated, unsaturated, and structurally modified fatty acids.
Applications of Dimer Acid
• The Dimer acids produced on an industrial scale are used in the manufacture of poly-amides, polyesters, epoxy resins, lubricants, plasticizers and pesticides.
• Dimer acids are used to import special properties to alkyd resins.
• The most important use dimmer acid is the manufacture of polyamides. Polyamide resins based on dimmer acids fall into two general categories, nonreactive or neutral polyamides and reactive polyamides.
• The major applications of neutral polyamides are imprinting ink, hot-melt adhesives and coatings.
• Reactive polyamides find their applications as curing agent for epoxy resins which are used as thermo-setting surface coatings, adhesives, potting and casting resins.
• Dimer acid esters of tri-methylolpropane are used in a synthetic lubricant formulation and dimmer derivatives of amines have found applications as aqueous metal working fluids. Dimer acids are used where the complexity of high molecular weight is important.
The term dimmer acids is applied to the dicarboxylic acids formed by reactions of two or more C18 unsaturated fatty acids such as Oleic and Linoleic acids. The only higher dicarboxylic acids of commercial importance are unsaturated cyclic C36 dicarboxylic acids known as dimmer acids. Commercial dimmer acids are mixture of C36 dibaisc acids, also containing some trimer (C54), higher oligomers and also some amount of monomer acids (C18) saturated, unsaturated, and structurally modified fatty acids.
Applications of Dimer Acid
• The Dimer acids produced on an industrial scale are used in the manufacture of poly-amides, polyesters, epoxy resins, lubricants, plasticizers and pesticides.
• Dimer acids are used to import special properties to alkyd resins.
• The most important use dimmer acid is the manufacture of polyamides. Polyamide resins based on dimmer acids fall into two general categories, nonreactive or neutral polyamides and reactive polyamides.
• The major applications of neutral polyamides are imprinting ink, hot-melt adhesives and coatings.
• Reactive polyamides find their applications as curing agent for epoxy resins which are used as thermo-setting surface coatings, adhesives, potting and casting resins.
• Dimer acid esters of tri-methylolpropane are used in a synthetic lubricant formulation and dimmer derivatives of amines have found applications as aqueous metal working fluids. Dimer acids are used where the complexity of high molecular weight is important.
Ricenoleic Acid
Ricenoleic Acid is a yellow to amber coloured viscous oily liquid with characteristic odour. There are two different qualities of Ricenoleic acid are produced, commercial and Kosher grade.
Applications of Ricenoleic Acid
• Ricenoleic acid is effective in preventing the growth of numerous species of viruses, bacteria, yeast, and molds. It is successful as a topical treatment for ringworm, keratoses, skin inflammation, abrasions.
• Ricenoleic acid is used in preparation of soaps having the desired characteristics, lubricants, emulsifier & amp; metal working compounds.
• Ricenoleic acid finds uses in inks, coatings, plastics and cosmetics etc;
• It finds application in textiles as it provides polarity, surface wetting & lubricity.
• The sodium & potassium soaps of Ricenoleic acids are emulsifiers and foam stabilizers used in rubber processing.
Ricenoleic Acid is a yellow to amber coloured viscous oily liquid with characteristic odour. There are two different qualities of Ricenoleic acid are produced, commercial and Kosher grade.
Applications of Ricenoleic Acid
• Ricenoleic acid is effective in preventing the growth of numerous species of viruses, bacteria, yeast, and molds. It is successful as a topical treatment for ringworm, keratoses, skin inflammation, abrasions.
• Ricenoleic acid is used in preparation of soaps having the desired characteristics, lubricants, emulsifier & amp; metal working compounds.
• Ricenoleic acid finds uses in inks, coatings, plastics and cosmetics etc;
• It finds application in textiles as it provides polarity, surface wetting & lubricity.
• The sodium & potassium soaps of Ricenoleic acids are emulsifiers and foam stabilizers used in rubber processing.
• It is used to manufacture Poly Glyceryl Poly Ricinoleate (PGPR) a key ingredient in chocolate products. Ricenoleic acid of Kosher grade is having application in the manufacture of ingredients for chocolate industry.
• Ricenoleic acid is used for the treatment of leather. It provides good wetting. Flexibility and softening property to leather.
Methyl Ricinoleate (MR)
Methyl Ricinoleate (MR) is a methyl ester of Ricenoleic acid, the main hydroxyl fatty acid present in the Castor oil. It is less viscous, pale yellow coloured oil.
Applications of MR
• It is used in paints, plasticizers and lubricants.
• MR is excellent wetting agent and foam control agent.
• It is used to make various perfumery chemicals and additives.
• Methyl ricinoleate is converted to acetyl and butyl esters which are used as plasticizers.
• Methyl Ricinoleate is used as intermediate for the manufacture of Methyl 12 Hydroxy Stearic Acid.
Methyl Ricinoleate (MR) is a methyl ester of Ricenoleic acid, the main hydroxyl fatty acid present in the Castor oil. It is less viscous, pale yellow coloured oil.
Applications of MR
• It is used in paints, plasticizers and lubricants.
• MR is excellent wetting agent and foam control agent.
• It is used to make various perfumery chemicals and additives.
• Methyl ricinoleate is converted to acetyl and butyl esters which are used as plasticizers.
• Methyl Ricinoleate is used as intermediate for the manufacture of Methyl 12 Hydroxy Stearic Acid.
Methyl 12 HSA
Methyl 12 HSA is high value and low volume derivative of hydrogenated Castor oil. Methyl 12 HSA is tertiary level Castor oil derivative, which is methyl ester of 12 Hydroxy Stearic Acid (Hydrogenated Castor Oil Fatty acid-HCOFA). However, commercially it is produced from Methyl Ricinoleate.
Applications of Methyl 12 HSA
• M-12 HSA is used in high quality greases. Its most important use is in lithium based greases because of improved stability during usage under shear and water resistance requirement.
• M-12 HSA is also used for surface Coating.
• M-12 HSA is used as plasticizer for Vinyls.
• It is used in the pharmaceutical industry for ointment manufacture and in cosmetics.
• Amides made from M-12 HSA are used in various wax formulations. It is good replacement of hard waxes.
Methyl 12 HSA is high value and low volume derivative of hydrogenated Castor oil. Methyl 12 HSA is tertiary level Castor oil derivative, which is methyl ester of 12 Hydroxy Stearic Acid (Hydrogenated Castor Oil Fatty acid-HCOFA). However, commercially it is produced from Methyl Ricinoleate.
Applications of Methyl 12 HSA
• M-12 HSA is used in high quality greases. Its most important use is in lithium based greases because of improved stability during usage under shear and water resistance requirement.
• M-12 HSA is also used for surface Coating.
• M-12 HSA is used as plasticizer for Vinyls.
• It is used in the pharmaceutical industry for ointment manufacture and in cosmetics.
• Amides made from M-12 HSA are used in various wax formulations. It is good replacement of hard waxes.
Sebacic Acid
Sebacic acid is a long chain-di-carboxylic acid manufactured from Castor oil, by a complex manufacturing process. Sebacic acid is white powder crystal, dissolves slightly in water completely in Ethanol or Ether, but not in Benzene. Sebacic acid can be synthesized from phenols or cresols but Caster oil oxidation is more appropriate and environment friendly. Sebacic acid is commercially available in two main forms, powder and prilled.
Applications of Sebacic Acid
• Esters of Sebacic acid are used in the manufacture of plastics as plasticizers.
• Ethyl Sebacate is used as flavoring agent. Di-octyl sebacates and Sebacic acid is also used as a starting material for the synthesis of Muscone.
• Sebacic acid is used in fungicidal sprays.
• Other higher alkyl derivatives of Sebacic acid are used as additive in lubricating oil and in the preparation of low temperature grease. Sebacic acid esters and other compounds find application as additive in aviation engine lubricants.
• Sebacic acid is used as alternative of adipic acid in the manufacture of Nylon-12. Sebacic acid is used in as main raw material in Nylon 6-10, Nylon 1010, Nylon 810 and Nylon-9.
Thus, Sebacic acid is an important Castor oil derivative, finding its applications in many more industries and its demand is largely in developed countries like USA, France, Germany, South Korea, Japan and China.
Ethoxylated Castor Oil
Ethoxylated Castor oil is pale amber coloured liquid with specific gravity just above 1 at room temperature. Ethoxylated Castor oil products containing from 5 to 200 moles of added ethylene oxide are marketed. These surfactants cover the HLB range from 5 to 18.
Applications of Ethoxylated Castor Oil
• Ethoxylated Castor oil is water-soluble surfactant and is used as emulsifier and dispensant.
• Castor oil ethoxylates are widely used in textile industry in the preparation of micro-emulsions for spin finishes and as components of emulsifier systems used as dye carriers. Ethoxylated HCO is used as antistatic agent of textile fibres.
• It is used in the preparation of latex paints, cosmetics & toiletries.
• Ethoxylated Castor oil is also used as good solublizer for Vitamin A palmitate.
• The highly Ethoxylated Castor oils are also used as components in detergents, lubricating and cutting oils, hydraulic fluids, textile finishing composition and as antistatic agents for nylon carpets and apparels.
• Poly Ethoxylated Castor oil derivatives are used in a variety of oral, topical and parenteral pharmaceutical formulations.
Ethoxylated Castor oil is pale amber coloured liquid with specific gravity just above 1 at room temperature. Ethoxylated Castor oil products containing from 5 to 200 moles of added ethylene oxide are marketed. These surfactants cover the HLB range from 5 to 18.
Applications of Ethoxylated Castor Oil
• Ethoxylated Castor oil is water-soluble surfactant and is used as emulsifier and dispensant.
• Castor oil ethoxylates are widely used in textile industry in the preparation of micro-emulsions for spin finishes and as components of emulsifier systems used as dye carriers. Ethoxylated HCO is used as antistatic agent of textile fibres.
• It is used in the preparation of latex paints, cosmetics & toiletries.
• Ethoxylated Castor oil is also used as good solublizer for Vitamin A palmitate.
• The highly Ethoxylated Castor oils are also used as components in detergents, lubricating and cutting oils, hydraulic fluids, textile finishing composition and as antistatic agents for nylon carpets and apparels.
• Poly Ethoxylated Castor oil derivatives are used in a variety of oral, topical and parenteral pharmaceutical formulations.
Nylon-11
Nylon-11 is polymer of 11-Aminodecanoic acid. Nylon-11 is hydrophobic and provides excellent insulating properties. As expected from the longer hydrocarbon chain, Nylon-11 shows hardly any sensitivity of dimensional change in presence of moisture.
Applications of Nylon-11
• Nylon-11 and Nylon 12 are used for making films with lower water vapor permeability. Nylon 11 is available as film and sheeting material with thickness of 0.025 to 1.27 mm.
• Nylon-11 is useful in making bristles, industrial fabric, which finds use as filter cloth, bags, netting, flexible fishing lines and varieties of brush applications where toughness and durability are required.
• Nylon-11 is used as engineering plastic in the automobile manufacture, as fuel lines for petrol and diesel engines. It is also finding application in manufacture of various using extruded and molded parts of fuel systems such as filter necks,Air Brakes, gas tanks, reservoir modules, fuel rails, and vapor recovery systems.
Nylon-11 is polymer of 11-Aminodecanoic acid. Nylon-11 is hydrophobic and provides excellent insulating properties. As expected from the longer hydrocarbon chain, Nylon-11 shows hardly any sensitivity of dimensional change in presence of moisture.
Applications of Nylon-11
• Nylon-11 and Nylon 12 are used for making films with lower water vapor permeability. Nylon 11 is available as film and sheeting material with thickness of 0.025 to 1.27 mm.
• Nylon-11 is useful in making bristles, industrial fabric, which finds use as filter cloth, bags, netting, flexible fishing lines and varieties of brush applications where toughness and durability are required.
• Nylon-11 is used as engineering plastic in the automobile manufacture, as fuel lines for petrol and diesel engines. It is also finding application in manufacture of various using extruded and molded parts of fuel systems such as filter necks,Air Brakes, gas tanks, reservoir modules, fuel rails, and vapor recovery systems.
• Coating powder based on Nylon-11 polyamide resins have been in use for fusion coating processes for long time.Today Nylon-12 based coating powder has also been introduced in the market.
Nylon 6-10
Nylon 6-10 is an important polyamide being prepared using Sebacic Acid prepared from Castor oil. Nylon
6-10 has high toughness and lower moisture absorption than Nylon 6-6, which is manufactured from petroleum based raw materials. It is also having better dimensional stability and electrical properties. Nylon 6-10 is one of the high moisture barrier polymer. Nylon 6-10 is translucent in nature and has fair possibility. Nylon 6-10 has better molding properties and resistance to moisture than adipic acid-based Nylon 6-6.
Applications Nylon 6-10
• It is used for making bristles, because of low moisture absorption and elasticity.
• It is used for molding, extrusion, filaments, bristles and some textile fiber applications.
• Nylon 6-10 is working as better substitute of Nylon 6-6 and hence it can be used for all application where Nylon 6-6 is used.
Nylon 6-10 is an important polyamide being prepared using Sebacic Acid prepared from Castor oil. Nylon
6-10 has high toughness and lower moisture absorption than Nylon 6-6, which is manufactured from petroleum based raw materials. It is also having better dimensional stability and electrical properties. Nylon 6-10 is one of the high moisture barrier polymer. Nylon 6-10 is translucent in nature and has fair possibility. Nylon 6-10 has better molding properties and resistance to moisture than adipic acid-based Nylon 6-6.
Applications Nylon 6-10
• It is used for making bristles, because of low moisture absorption and elasticity.
• It is used for molding, extrusion, filaments, bristles and some textile fiber applications.
• Nylon 6-10 is working as better substitute of Nylon 6-6 and hence it can be used for all application where Nylon 6-6 is used.
Table 3 Castor Derivatives estimate production in India
As can be observed from Table 3 that the group of units which has a share of about 65% to 70% include Jayant Agro-Organics Limited (JAOL), Jayant Oil and Derivatives Ltd. (JODL), Sree Rayalseema Alkalies and Allied Chemicals Ltd., Gokul Refoils and Solvents Limited, etc. Of this, the Rayalseem group is located at Kurnool, Andhra Pradesh, whereas the rest are in and around Gujarat. In the following, brief profiles of the three main units in the country, i.e. JAOL, JODL and Rayalseema are given based on GITCO visits to these units.
The Indian castor oil industry is characterized by high dominance in castor oil exports at international level but poor production and therefore exports of Castor Oil Derivatives. It is observed that while India today crushes nearly all the castor it crops, it does very little beyond just shipping out the oil. It is estimated that only 12% of India’s exports of castor are as derivatives.
International Market Scenario
This is in sharp contrast to countries such as China and Brazil that convert nearly all of the oil expelled into value added derivatives. The global market for castor oil derivatives is estimated at US$ 500 plus million. It is also highly remunerative in terms of contribution. The world market of castor derivatives in terms of quantity is estimated in the range of 2.0 to 2.5 lakh tonnes per annum. This is only an indicative figure based on GITCO’s discussions with industry sources.
This is in sharp contrast to countries such as China and Brazil that convert nearly all of the oil expelled into value added derivatives. The global market for castor oil derivatives is estimated at US$ 500 plus million. It is also highly remunerative in terms of contribution. The world market of castor derivatives in terms of quantity is estimated in the range of 2.0 to 2.5 lakh tonnes per annum. This is only an indicative figure based on GITCO’s discussions with industry sources.
Global Market of Castor Oil Derivatives
As previously indicated Castor Oil is used directly as well as for manufacturing various castor oil derivatives from it. World Export of Castor Oil and Derivatives and countries exporting it for last 6 years period is summarized in Table-4.
As previously indicated Castor Oil is used directly as well as for manufacturing various castor oil derivatives from it. World Export of Castor Oil and Derivatives and countries exporting it for last 6 years period is summarized in Table-4.
• As it can be observed from above table World castor oil and derivatives export has grown from 2.09 lakh M. tonnes in the year 2001-02 to the level of 3.07 lakh M. tonnes in the year 2004-05 and declined to 2.80 lakh M.tonnes as projected for the year 2005-06.In 2007-08, it was forecasted at 2.97 Lakh. tonnes Castor oil demand globally is fluctuating with its supply position and also prices in the international market. However, it is worth noting here that overall demand for Castor Oil and its Derivatives has increased by about 30% in past six years period.
• USA, Europe and Japan are major consumers of first generation derivatives like HCO, 12 HSA, DCO and Methyl-12 HSA. This is mainly attributed to the fact that much of this is processed further to produce second and third generation derivatives, which give very high value addition. USA is dominant in the field of third generation derivatives like Polyols and Esters. Europe has prominence in Polyamides (Nylon-11, Nylon 6-10).
• In last few years, China has acquired dominant position in the field of Sebacic Acid. In fact, China is also into other derivatives and therefore imports castor oil in substantial quantities. In view of China’s emergence as major derivative manufacturer and also the fact that China along with Indian and Brazil is one of the few countries to have castor crops, base, a brief scenario of China in the field of derivatives in general and Sebacic Acid in particular is described below.
• USA, Europe and Japan are major consumers of first generation derivatives like HCO, 12 HSA, DCO and Methyl-12 HSA. This is mainly attributed to the fact that much of this is processed further to produce second and third generation derivatives, which give very high value addition. USA is dominant in the field of third generation derivatives like Polyols and Esters. Europe has prominence in Polyamides (Nylon-11, Nylon 6-10).
• In last few years, China has acquired dominant position in the field of Sebacic Acid. In fact, China is also into other derivatives and therefore imports castor oil in substantial quantities. In view of China’s emergence as major derivative manufacturer and also the fact that China along with Indian and Brazil is one of the few countries to have castor crops, base, a brief scenario of China in the field of derivatives in general and Sebacic Acid in particular is described below.
USA imports Sebacic acid from China mainly to convert into other derivatives as also using in application segments mentioned above. According to data available (Chemical Weekly, July 31, 2007), India imported about 442 tonnes of Sebacic acid in the period January 1, 2005 to May 31, 2007 (29 months). Almost all of these came from China.
India’s Exports of Castor Derivatives
India of its total exports of Castor Oil, exports only 12% derivatives. India’s total exports of derivatives is estimated at 55000 to 70000 TPA based on last three years performance. This less than 25% of the global market in Castor Derivatives in terms of quantity. Since India is really not into 3rd generation derivatives and has small base in 2nd generation derivatives its share in terms of value could be even less.
The following Tables 5,6,7 give indicative estimates of India’s export performance in this field.
India’s Exports of Castor Derivatives
India of its total exports of Castor Oil, exports only 12% derivatives. India’s total exports of derivatives is estimated at 55000 to 70000 TPA based on last three years performance. This less than 25% of the global market in Castor Derivatives in terms of quantity. Since India is really not into 3rd generation derivatives and has small base in 2nd generation derivatives its share in terms of value could be even less.
The following Tables 5,6,7 give indicative estimates of India’s export performance in this field.
As seen from the above tables, most of the Indian exports are accounted for by the low value added derivatives – in fact no Indian producers manufacture Sebacic acid while exports of Undecenoic acid is just 1% by weight of the total derivatives exported. In the light of the WTO norms, castor seeds can now be exported from India, as the government can impose no quantitative restrictions.
Prospects for Castor Oil Derivatives in Domestic Market
Castor oil and derivatives are used in consuming industries like Soap, Cosmetics, Lubricants, Paints &
Resins, Printing ink, and as food additives. These all industries are growing and expected to grow at the
rate of 5% per annum during next five years period from 2007 to 2012 due to growing demand of their
domestic consuming class. The demand for Castor and derivatives in domestic market is expected to grow in parallel to growth in their consuming industries. The current market share and projected growth rate of
consuming industries is given in Table-8.
Prospects for Castor Oil Derivatives in Domestic Market
Castor oil and derivatives are used in consuming industries like Soap, Cosmetics, Lubricants, Paints &
Resins, Printing ink, and as food additives. These all industries are growing and expected to grow at the
rate of 5% per annum during next five years period from 2007 to 2012 due to growing demand of their
domestic consuming class. The demand for Castor and derivatives in domestic market is expected to grow in parallel to growth in their consuming industries. The current market share and projected growth rate of
consuming industries is given in Table-8.
Export Market Prospects
It is estimated that the global market for castor oil derivatives grows @ 3% to 5%. This is an average across all the derivatives. A few factors which may help the international castor derivatives market its general and the Indian Castor Oil Derivatives exports in particular include following.
i) 3rd generation derivatives like Polyols, Polyamides and Sebacic Acid are expected to grow faster.
ii) Since India is practically not there in this segment now but expected to enter in near future export growth would be much higher.
iii) With focus on environmental issues, castor oil derivatives are projected to enter new user application segments like Polyols and Adipic Acid.
iv) A stable pricing scenario in Castor Oil segment would lead to competitive prices of Indian Castor Derivatives. At present, with higher Castor Oil prices and consequent higher derivatives prices, foreign buyers go for alternate products.
v) With positive measures and favourable developments the Indian Exports of Castor Oil Derivatives is expected to grow at about 5%. The projected exports in that would be in the range of 1.00 lakh to 1.10 lakh in the year 2010.
The Future Ahead
The industry now seems to have realized the need to be not only active and but proactive. A few signs are
a) The annual castor crop survey by SEA and supported by the industry is increased much required transparency.
b) Medium and large units (derivatives) are moving into 3rd generation derivatives.
c) Active units in the SME segments are planning to strengthen their product mix.
d) Established, large derivative units in Europe, Japan and China seem to be showing some interest in coming to India and have tie-ups.
e) Global market, as analyzed earlier, may grow faster.
It is estimated that the global market for castor oil derivatives grows @ 3% to 5%. This is an average across all the derivatives. A few factors which may help the international castor derivatives market its general and the Indian Castor Oil Derivatives exports in particular include following.
i) 3rd generation derivatives like Polyols, Polyamides and Sebacic Acid are expected to grow faster.
ii) Since India is practically not there in this segment now but expected to enter in near future export growth would be much higher.
iii) With focus on environmental issues, castor oil derivatives are projected to enter new user application segments like Polyols and Adipic Acid.
iv) A stable pricing scenario in Castor Oil segment would lead to competitive prices of Indian Castor Derivatives. At present, with higher Castor Oil prices and consequent higher derivatives prices, foreign buyers go for alternate products.
v) With positive measures and favourable developments the Indian Exports of Castor Oil Derivatives is expected to grow at about 5%. The projected exports in that would be in the range of 1.00 lakh to 1.10 lakh in the year 2010.
The Future Ahead
The industry now seems to have realized the need to be not only active and but proactive. A few signs are
a) The annual castor crop survey by SEA and supported by the industry is increased much required transparency.
b) Medium and large units (derivatives) are moving into 3rd generation derivatives.
c) Active units in the SME segments are planning to strengthen their product mix.
d) Established, large derivative units in Europe, Japan and China seem to be showing some interest in coming to India and have tie-ups.
e) Global market, as analyzed earlier, may grow faster.
It is important to note here that in India all the three levels of players are operating at present. There are large numbers of small players in the industry who are mainly engaged in castor seed crushing in small way and mainly catering the local market or supplying oil to larger players and derivative manufacturers. Medium and large players in castor industry have diversified in primary and secondary level products and have started supplying them in domestic and export market.
Out of these few medium level companies, few companies are exploring the possibilities or have already entered into tertiary level derivatives and also exploring the possibilities of technology tie up with multinational companies for high level, complex products from Castor oil and Castor oil derivatives.
Out of these few medium level companies, few companies are exploring the possibilities or have already entered into tertiary level derivatives and also exploring the possibilities of technology tie up with multinational companies for high level, complex products from Castor oil and Castor oil derivatives.
Courtesy: GITCO Comprehensive Status Study on Castor Oil and its Derivatives in India (Vol I & II-
2008)
Here is the link to the original post 2008)
Conclusion: Jayant Agro Organics is the largest player of Castor in India ..no doubt about that. Jayant has also reported that the Commercial production of sebacic acid has been started (non commercial production and testing was on for past 2 yrs ) Right now you get to buy Jayant agro Organics which is a 2000Cr Sales company for just 160Cr(Current Market Cap). The move to Sebacic acid is going to be a real game changer as margins are going to improve substantially increasing the PE of Jayant. Jayant Agro is a recommended Best Buy for long term and a multibagger in the making.
Jayant Agro Blog Archives
12 comments:
Dear Whatsup,
Do you tracking Simran Farms? It can be another venkyes india? please share your thought
Anonymous ji:
I dont track Simran Farms but.. if you are looking in that space then SKM is a much better bet..
an Egg has a shelf life of 30-60 days.. but once processed Egg powder has a shelf life of 1+years..
SKM is building an integrated setup and once stabilized it will do wonders.. sales have also started rising.. so this is a good time to enter SKM (when price is down) .. EMU is something I dont know much about.. have you tried an EMU egg or meat?..
what drives you towards Simran?..
SKM has the largest Egg powder processing plant (in Asia I think) built with approximately 40-50Cr plant..
SKM at 17.9Cr is a deep value dark horse..
=happy investing
whatsup-indianstockideas.blogspot.com
WhatsUpji,I am tracking both stock. According to me ,SKM fundamentals are mess now...It may take years to recover. They are facing big cash flow problem.But at the same time Simran increase the asset base and they have negligible debt.... they are into boiled chiken and egg business..Morever Simran have only 3.79 cr equity capital !!!!!Rising raw meterial is only concern. Please so some study and let us know..Your domain knowledge in this sector will help us to develop more conviction. thanks
Anonymous ji:
yes SKM looks to be in dumps.. but then .. what I feel is that Companies are allowed to defer tax payments for a few years (5 I think..) after which tax payments have to be made to the govt.. well if you start reporting losses you donot.. need to pay taxes..
So what I feel is that this skm result is nothing but that..
Simran looks good but .. there is not much value addition.. you grown and sell.. where is the value add??
I could buy 100 chicks start a simran farm in my backyard.. not the same with Venky's or SKM..
Yes from a valuation perspective Simran no doubt is Cheap.. but I think growth will be an issue..
Yes SKM Might take some more time to recover..(a few years..) but I like the fact that you convert a perishable item into non perishable.. when you produce Egg powder..
Just my 2 cents..
=happy investing
whatsup-indianstockideas.blogspot.com
Ι tend not to drop a great desal of remarks, however I browsed a fеw of the responses on "Castor Oil Derivative -Primer.".
Ӏ do have 2 questions ffor yyou if you don't
mind. Could it be simply me or does it look like a fеw of these remarks
come acrosѕ liҟe they are written by brain dead folks?
:-P And, if yߋu are writing at other online sites,
I'd like to follow you. Could ƴou make a lіst of all of your social networking sites
like your Facebook page, tԝitter fеed, or lіnkedin profile?
my weblog :: malwaree removal ()
Anonymous ji:
I dont have twitter or facebook page.. I do write in moneycontrol messageboard as "whatsupji"
=happy investing
whatsup-indianstockideas
Ecofriendly paints manufacturers
Exterior emulsion paints manufacturers
Interior emulsion paints manufacturers
Water based enamel paints manufacturers | Water based PU enamels manufacturers
Water based Pu wood coating paints manufacturers
Floor coat paints manufacturers
Texture paints manufacturers
Water based intumescent paints manufacturers
Water based low VOC paints manufacturers
Bathroom and Kitchen paints manufacturers
Temperature reducing paint manufacturers
Water based PU enamels manufacturers
Insect repellent paints manufacturers
Ecofriendly paints manufacturers
Exterior emulsion paints manufacturers
Interior emulsion paints manufacturers
Water based enamel paints manufacturers | Water based PU enamels manufacturers
Water based Pu wood coating paints manufacturers
Floor coat paints manufacturers
Texture paints manufacturers
Water based intumescent paints manufacturers
Water based low VOC paints manufacturers
Bathroom and Kitchen paints manufacturers
Temperature reducing paint manufacturers
Water based PU enamels manufacturers
Insect repellent paints manufacturers
Ajman Media City is one of the fastest growing Free zone in the UAE. It is one of the most competitive business centers with cost-effective business setup services and world-class infrastructure.
Ajman Media City
Ajman Media City Free Zone
ajman media city free zone company incorporation
ajman media city free zone company registration
ajman media city free zone license registration
ajman media city free zone company formation
ajman media city free zone license formation
ajman media city free zone license incorporation
Ajman Media City Free Zone
Your info is really amazing with impressive content. Excellent blog with an informative concept. Really I feel happy to see this useful blog, Thanks for sharing such a nice blog.
Paint Manufacturers
Thanks for sharing....POWDER COATING PLANTS MANUFACTURERS
Post a Comment