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COPPER SULPHATE

CONTENTS SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT TRENDS SECTION V PRICE TRENDS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIALS REQUIREMENTS AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X 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

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SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATIONS

Appearance Crystalline substance, blue in colour and

soluble in water. On heating, it loses its water of crystallisation finally giving a white powder, which regains its blue colour when moistened with a drop of water.

Specification Characteristics Technical grade Pure grade

Copper, percent by mass, Min.

24.7 25.1

Matter insoluble in water, percent by mass, Max

0.20 0.05

Soluble iron and aluminium compounds (as Fe), percent by mass, Max

0.30 0.15

pH value, not less than 3.0 3.5 Chloride (as Cl), percent by mass, Max.

- 0.01

Arsenic (as AS2O3), mg/kg, Max.

- 10.0

Lead and Zinc - to pass the test

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SECTION II

PRODUCT APPLICATIONS 2.1. General details Copper Sulphate finds application for Agriculture and Industrial purposes. Grade Nature of use

Technical (Tech) grade Used in dyeing cotton and silk, preserving

hides and woods, tanning leather, electric batteries, process engraving, destroying algae in pools, rot proofing of jute product, manufacture if green and blue pigments and fungicides (Bordeaux mixture).

Pure grade Used in fine chemicals.

2.2. Agricultural Use. Copper Sulphate is used as a fungicide. It is mixed with lime to give Bordeaux mixture which is used for spraying , potatoes etc. The salt most commonly used as a fungicide is Copper Sulphate, often called “blue vitriol”, which is the chief component in such preparations as Bordeaux and Burgundy mixtures. Copper Sulphate is sometimes used alone as a winter spray for trees, for the destruction of weeds or algae in ponds, and for killing snails in USA and Europe. Other copper compounds used as fungicides, but to as much smaller extent, include the carbonate, acetate, some cupro-ammonium compounds and cuprous oxide. Most copper fungicides have but little effect alone on insect life, but copper aceto-arsenite (known as Paris green, emerald green or schweinfurter green) is probably the most useful for this purpose. It is prepared by boiling together suspensions of white arsenic and basic copper acetate with a little acetic acid. Although Paris green is not now so widely used as an insecticides as formerly, it is very useful for the destruction of mosquito larve in stagmant pools. It is also used as a poison bait for slugs and leather jackets.

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2.3. Industrial Uses Copper sulphate is used by mining companies in flotation processes, particularly for treating lead-zinc and gold ores. It is also used in some textile dyeing processess, in the manufacture of certain types of rayon fibres, in leather dressing, as a preservative for timber and in anti-fouling paints. Copper Sulphate is also used in electroplating, electrotyping and electro refining of copper.It is also used used in dyeing and calico-printing. Other applications include in medicine and in the laboratory, for preparation of other copper compounds, detecting water and in the preparation of absolute alcohol.

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SECTION III

INDIAN MANUFACTURERS There are reported to be more than One hundred units in the country manufacturing Copper Sulphate, predominantly in the small scale sector. A number of them operate during seasonal periods and also at low capacity level due to variety of reasons. Important manufacturers of Copper Sulphate in Tamil Nadu : *. Borax India Ltd. PIPDIC Indl. Estate, Pondicherry. A-81, PIPDIC Indl. Area, Mettupalayam, Pondicherry - 605 009. *. Andavar Chemicals (P) Ltd. Anaipatty, Near Musiri, Trichy Dist.-621 211.,Tamil Nadu. * Kushal Chem, 4-4-248, Sultan Bazar, Kothi Chowrasta, Hyderabad-500 195. * Merel Laboratories (P) Ltd. 70/6, GST Road,

Kolambakkam, Maduranthagam Taluk, Chingleput Dist.,

Tamil Nadu. *. Super Chem (India) No.5, Venkatachala Street, Madras-600 003. *. United Chemicals & Detergents 8, Devcot Muthumariamman Koil Street Madhavaram, Madras-600 060 *. ICMC Corproation Ltd., (Industrial Agro Chemicals (Try) Pvt. Ltd.) 38, Gandhi Nagar, Ponnagar, Trichy- 620 001. *. Charag Chemical Industries,

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K-14, Ambattur Indl. Estate, Madras-600 058. *. Industrial Chemical Manufacturing Co.,

1-3, Industrial Estate, Ariyamangalam, Tiruchirapalli-620 010.

*. Ram Agro Chemical Industries (P) Ltd., 103, GNT Road, Pushal, Madras-600 066. *. Southern Agro Chemicals (P) Ltd., 10, SIDCO Indl. Estate, Ambattur, Madras-600 098. *. Sri. Arvind Chemical Industries, SIDCO Indl. Estate, Ranipet, Tamil nadu. * Sun Chemical Industries, P.B.No.10, Narasojipath, Omalur Road,Salem. *. Varnus Chemicals, Main Road,Vellaripatti P.O., Melut Taluk - 625 122, Madurai Dist. The Indian installed capacity for Copper Sulphate Around 25,000 tonnes per annum

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SECTION IV

IMPORT/EXPORT TRENDS

4.1 Import Details 4.1.1 Present import level : Around 365 tonnes annum 4.1.2 Countrywise Imports Period April 2001 to March 2002 Country Qunatity in Kgs

Australia 219042 German F REP 100 Singapore 20000 UK 102000 Unspecified 22000 4.1.3 Individual Imports Details Period 2002 Name of the Importers Quantity in

tonnes Value in Rs. Country Date Port

Metec Asia P.ltd., 6.002 840714 Australia 17.07.2002 to 24.07.2002

Mumbai

Metec Asia P.Ltd., 20.096 276280 Australia 09.09.2002 to 16.09.2002

Mumbai

4.2. Export Details 4.2.1 Present export level : Around 200 tonnes per annum 4.2.2 Individual Exports of Copper Sulphate Period 2002 Name of the Exporters Quantity in

tonnes Value in Rs. Country Date Port

Aimco Pesticides Ltd., 0.250 17082 Gangoon 17.01.2002 to 31.01.2002

Mumbai

Graur & Weil (I) Ltd., 0.001 77 Dar E Salram 17.06.2002 to 29.06.2002

Mumbai

Green Star Impex P.Ltd., 0.020 3624 Djibouti 17.09.2002 to 31.09.2002

Mumbai

Electro-Mech Enterprises 0.200 11640 Dubai 01.08.2002 to 18.08.2002

Mumbai

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SECTION V

PRICE TRENDS

Present price level for Copper sulphate : Rs.50 per kg Taxes and duties : Extra as applicable

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SECTION VI

INDIAN DEMAND 6.1. Fungicide sector Of the 70,000 tonnes per annum copper in compounds used in agriculture, almost 75% is used in the control of fungi. The first reference to the use of copper as a fungicide dates to 1761 (83) where copper sulphate was used on wheat seed for the control of bunt. In 1807 (84) the discovery of copper as fungicide was made and the discovery of Bourdeaux mixture (Copper Sulphate plus lime) followed in 1882. In order for copper to have any persistance as foliar fungicide,it must be rendered insoluble so that it would not be washed off the leaf surface during rainfall. Copper compounds have been used successfully since the latter 1880s on fruit, vegetables, nut crops, and ornamentals. Copper is an effective broad-spectrum fungicide, although its action is more prophylatic in nature. Whereas copper is not as effective as some organics against specific pathogens, pathogen resistance to copper has been minimal in the >100 year usage. Many organic fungicides are used less often then copper compounds because of residue tolerance, or for regulatory reasons. Use of copper compounds as fungicides has seen a resurgence in the latter part of the twentieth century. Plant and Animal Nutrient Copper is one of seven mitronutrients that has been identified as eesential to the proper growth of plants. Cereal crops are by far the most affected by copper deficiency. Greenhouse studies have shown yield increases from 38% to over 50% for wheat, barley, and oats using copper supplementation. A tenfold increase in the yield of oats was reported in France. Symptoms of copper deficiency vary depending on species, but often it is accompanied by withering or chlorosis in the leaves that is not amenable to iron supplementation. In high concentrations, particularly in low pH soils, copper can be toxic to plants. Copper sulphate is by far the most common algicide. Other copper-containing algicides for use in domestic applications such as swimming pools are usually chelated to prevent hydrolysis and precipitation of the copper. Bordeaux mixture Alternate names Bordeaux mixture is an aqueous suspension of flocculant, blue, slowly settling amorphous precipitate possessing great tenacity when freshly prepared. It is mainly used on crop plants at stages of growth freshly prepared. It is mainly used on crop plants at stages of growth on which its phytotoxic action is small.

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It consist of basic Copper Sulphate with an admixture of gypsum. It is prepared from Copper Sulphate and hydrated lime. The quality of the mixture depends on the concentration of the solutions of Copper Sulphate and lime milk taken for its preparation, and also on the way of mixing. It is important that the Copper Sulphate react with the lime in an alkaline medium. In this case, mainly finely dispersed particles (3-4 um) of basic Copper Sulphate are formed. 4CuSO4 + 3Ca(OH)2= CuSO4.3Cu(OH)2 + 3CaSO4 Such a suspension is sufficiently stable, has good adhesiveness and tenacity on the surface of plants, and a high fungicidal activity. Bordeaux mixture is used in concentrations of 1-4% at a rate of from 600 to 1200 litre/ha (the Copper Sulphate is used at a rate of 6-60 kg/ha). 6.2. Dyestuff sector Coppre Sulphate is used in some textile dyeing processess. 6.3. Mineral flotation Copper sulphate is used by mining companies in flotation processes, particularly for treating lead-zinc and gold ores. 6.4. Pharmaceutical sector

Copper sulphate is used in the pharma industry.

6.5. Consolidated sectorwise demand for Copper sulphate

Sector Demand in tonnes per

annum Fungicide 6000 Dyestuff 1500 Mineral flotation 1500 Pharmaceutical 500 Total 9500

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6.6. Growth rate in demand Considering the above figures, the average growth rate in demand Copper Sulphate can be considered as follows. The major demand for Copper Sulphate is as an agrochemical. However,. there is substitution feasibility for the product particularly with copper oxy chloride. Any increased demand would take place due to greater level of usage of product by more application and not necessarily by more area of crop. Under the circumstances, the compounded growth in demand for micronutrients can be considered to be in the region of 5-6% per annum, on an average Agrochemical industry 5 to 6% per annum Other miscellaneous sector 10 to11% per annum

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SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

So far, Copper Sulphate has been manufactured by and large from copper scrap only. Recently its production has started also from and indegenously available ore, namely, Chalcopyrite. While preparing this revision it has been ensured that specification fir technology grade of the material would apply also to Copper Sulphate produced from Chalcopyrite. Copper sulphate is prepared by spraying dilute sulphuric acid on copper scrap or turnings placed in a reactor, while a current of air is passed up from below The dilute solution is recirculated unitl a sufficient concentrations of Copper sulphate is obtained 2Cu + 2H2SO4 + O2 → 2CuSO4 + 2H2O Copper scrap would be reacted with sulphuric acid at a strength of around 70% in a lead lined reactor. The reactor would be cylindrical, vertical tank with conical bottom and flat top provided with paddle type of agitator. The reaction would be yield Copper Sulphate heptahydrate. After the reaction, the solution would be subjected to the filtration to remove the unreacted copper scrap material. The solution then would be the subjected to evaporation in the oper reactor, when the Copper Sulphate heptahydrate crystal would be formed. The crystal would be seperated from the solution by filtration to produce the finished product. Source of technology * Chandravadan P. Vora 307, Shatrunjay Co-op. Hsg. Soc., Neelkanth Vallery, Rajawadi, Ghatkopar (E) Mumbai-400 077 * Regional Research Laboratory (RRL), (A Constituent Establishment of CSIR) Jorhat - 785 006,Assam.

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Major plant and machinery suppliers Reactors Chemitherm Plants & Systems P. Ltd.,

30, Anandha Street Alwarpet, Chennai-600 018 Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai-600 098, Tamil Nadu

Evaporator Excel Industrial Services White House, D-111/8,Ist Main Road, Anna Nagar (East), Chennai-600 102 Alfa Laval Saunders (India) Ltd., No.18, Gill Nagar, Fist Street Chennai-600 094

Centrifuge

Hydrabad Met Chem. Pvt. Ltd., 34, C.I.E., Phase II, Gandhinagar, Opp. IDPL Colony Hyderabad-500 037 Spark Engineers Pvt. Ltd., 5/332, State Bank Colony II, Salem-636 004

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 Kaeser Kompressoren India 9 & 10, Symphony `C' Bldg., Range Hill Road Shivaji Nagar, Pune-411 020 V.P. Engineering Plot No.25/8, MIDC, Opp. Hindustan Petroleum, Turbhe, Navi Mumbai-400 705

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Crystalliser Febchem Engineering Works Plot No.A/2, Sector A, Sanwer Road, Industrial Area, Indore – 452 003 Kalina Engineering Pvt. Ltd., 34, Surya Kirti Industrial Estate, No.2, Village Ghokiware, Chinch Pada, Vasai (E), Dist. Thane

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SECTION VIII

RAW MATERIAL REQUIREMENTS AND AVAILABILITY

Raw Material requirements Basis: One tonne of Copper Sulphate heptahydrate. CuSO4 5H2O Sulphuric acid (98%): 0.420 tonne Copper scrap : 0.290 tonne Utility requirements Water : 2500 litres per tonne Power : 75 H.P. Fuel: 80 litres Raw material availability:- Copper scrap can be procured from copper scrap dealer Name of the raw material

Name of the producer

Sulphuric acid

EID Parry (India) Ltd., Tamil Nadu Tanfac Ltd., Cuddalore, Tamil Nadu

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SECTION IX

GLOBAL SCENARIO

Copper Compounds are widely used as fungicides and insecticides for the protection of crops. It has been estimated that the world’s annual consumption for copper salts for these purposes requires nearly 1,20,000 tonnes of copper, mostly in the form of Copper Sulphate, the largest demands coming from the United States, Central America, France and Italy. Copper compounds are used as feed additives in Europe and United States primarily for chickens and swine. Copper increases the rate of gain and feed efficiencies of the animals. It is unclear whether such results are from overcoming animal deficiencies or by enhancing preservation of feedstuffs. Algicides Copper sulphate has been used to control algae in lakes and reservoirs since around 1905. In the United States it is used by every state either on a routine or an occasional basis. It provides an effective and ecologically sound method to control algale blooms. Algae cause water supplies to have odour and taste. The turbidity and scum that forms algale blooms can blind filters and affect certain industries adversely. Significant algale blooms decrease recreational use and are a primary cause of oxygen depletion that results in fish kills. Active ingredient Year

introduced Example Manufacturer Copper ,%

Copper sulphate 1761 25 Copper sulphate + lime

1873 Bourdeaux Mixture <20

Copper sulphate + soda ash

>1885 Burgundy Mixture <20

Copper carbonate

1887 Basic copper carbonate C.C.D.

Agtrol Ducols

55 12.5

Copper oxychloride

1900 Cupravit Vitigran Cobox Microcop Coprantol COC 50 WP Cupreossil Blaukupfer

Bayer Hoechst BASF Tennessee Chem CIBA-Geigy Agtrol Scam Sandoz

50 50 50 50 30 50 50 50

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Copper ammonia complex

1917 Copper-Count-N K-Cop ALGAE-RHAP CU-7 Copac-E

Mineral Research Griffin Agtrol BASF

8 8 7 28-30a

Basic Copper sulphate

1930 Basic Copper Sulphate Tribasic Copper Sulfate

Agtrol Tennessee Chem

Copper (I) oxide 1932 Cobre Nordox Cobre Sandoz Oxiram 50 PM

Quimica Masso Sandoz CIBA-GEIGY

50 50 50

Copper hydroxide

1960 Kocide 101 Kocide DF Champion CHAMP Blue-Shield

Griffin Griffin Agtrol Agtrol Cuproquim

50 40 50 15 50

International Manufacturers for Copper Sulphate 1. Aldrich Chemical Co. Inc., P.O.Box No.355, Milwaukee, WI 53201. 2. Coyne Chemical, 3015 State Road, Croydon, PA 19021. 3. Criffin Corporation, PB 1847, Valdosta GA 31603 - 1847. 4. IMC group Pitcairn Place,Suite 1500, 1065 Township Line Road, Jenkintown, PA 19046-3595. 5. Mallinckrodt, 16305, Swingely Ridge Dr, Chesterfield MO63017, 6. Old Bridge Chemicals Inc., Old water Works Road, Old Bridge NJ 08857.

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7. Pechiney World Trade (USA) Inc.,Brandeis, Chemicals Division, 475, Steambat Road, Greenwich,CT 06830. 8. Phelps Dodge Refeng Corp. P.O.Box 2001, Elpuso, TX 79998. 9. Prince Agri Products Inc., Box 1009, Quiny, IL 62306-1009. 10. Shance Chemical Corp. 1 Depot, Plaza, Mamaroneck NY 10543 11. Triple -S Chemical Co., 3464, Union Pacific Ave, Los Angeles, CA 90023.

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SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS

Economic Capacity 300 tonnes per annum Project Cost Rs.88 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs 1.1

Cost of land of 0.5 acre at Rs.5.5 lakh per acre 2.75

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

0.28

Subtotal 3.03 2. Building S.No. Description Cost

Rs.in lakhs 2.1 Factory building of area 170 sq.m. at Rs.3200/sq.m. 5.44 2.2 Non-factory building of area 50 sq.m.at Rs.4500/sq.m. 2.25 Subtotal 7.69 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs 3.1 Cost of basic plant and machinery 25 3.2 Instrumentation and control 1.88 3.3 Pipelines and valves 2.5 3.4 Structurals for erection 1.25 Subtotal 30.63 3.5 Octroi, excise duty, sales tax, etc.at 12%� 3.68 3.6 Packaging and insurance charges (2%) 0.61 3.7 Transportation charges (2%) 0.61 3.8 Machinery stores and spares (2%) 0.61 3.9 Foundation charges (2%) 0.61 3.10 Installation charges (2%) 0.61 Total cost of plant and Machinery 37.36 4. Technical know-how fees Rs.1.5 lakhs

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5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs 2.2 Electrification 2.4 5.2. Steam boiler and auxillaries 3.5 5.3. Water storage tank, borewell etc. 0.6 5.4. Fuel storage tank 0.5 5.5. Laboratory equipment 0.6 5.6. Office machinery & equipment 0.8 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 0.6

5.8. Diesel generator 4.4 5.9. Effluent treatment 3.2 Total 16.6 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs 6.1. Preliminary expenses 1.3 6.2. Pre-operative expenses:- 6.2.1 Establishment 0.8 6.2.2 Rent rates and taxes 0.8 6.2.3 Travelling expenses 0.6 6.2.4 Interest and commitment charges on borrowings 1.8 6.2.5 Insurance during construction period 1.2 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 6.5 7. Provision for contingency Rs. 4.65 lakhs 8. Working capital margin Rs.10.97 lakhs 9. Total project cost Rs.88 lakhs Say Rs.88 lakhs 10. Means of Finance Promoter's contribution Rs.35 lakhs Term loan from financing institutions Rs.53 lakhs Total project cost Rs.88 lakhs 11. Financial statements

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Cost of production A Variable cost

Rs. in lakhs

Raw material and utilities 76.78 Spares and maintenance 2.24 Selling expenses 7.5 Total variable cost (A)

86.5

B Fixed cost

Salaries and wages 12 Interest on term loan and working capital loan 15.46 Depreciation 5.34 Administrative expenses 4.5 Total fixed cost (B)

37.3

C. Total cost of production (A+B)

123.82

D. Selling price per kg. (in Rupees)

50

E. Annual sales turnover

150

F. Net profit before tax (E-C)

26.18

G. Breakeven point in %

59%

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SECTION XI

SWOT ANALYSIS

Strength Growing demand

Weakness Seasonal demand

Opportunity Investment in small scale sector

Threat Competitive conditions and consequent price fluctuation

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SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATIONS The important applications for Copper Sulphate is as Agrochemical, though it has other uses such as in mineral flotation and dyestuff industries. In view of the mushroom growth of the Copper Sulphate industry in the country and low technology level involved in the project, it has to be examined when there is any special justification for capacity creation by individual project promoters. The project can be justified, if there would be advantages for the project promoter on the raw material availability and price trends, that would provide competitive advantages in the market for the product.