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| India Infoline Sector Reports | Thu, 04-Dec-2003 16:32:45 IST (GMT+5:30) | |
| Organic chemicals | ||
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Oleochemicals This includes fatty acids, fatty alcohol and glycerine. These are intermediate products, which are used in the manufacture of toilet soaps as well as several others petrochemicals. In India oilseeds are mainly used to produce fatty acids. The variety that can be used#include castor, cocoa, coconut, cotton seeds, ground seeds, linseed, mustard, neem, palm, rice bran, safflower and sesame. Fatty Acids Edible oil production takes up most of the fatty oils. As a result only two feedstocks namely bran and palm account for the production of fatty acids. like oleic acid, lanolin acid and aplmiytic acid use bran oil as feedstock. While Palmitic acid, oleic acid, and linoleic acid are yielded from palm oil, lauric acid, myristic acids and caprylic acid are produced from coconut oil. Manufacturing process Triglycerides are hydrolyzed to breakup into fatty acids and glycerol by a reaction termed as fat splitting. This output has to be distilled to produce fatty acids. Fatty acids of different chain lengths can be obtained by passing them through a series of evaporators to get various grades of glycerol and glycerine. The other process involves alcoholysis using excess glycerol or methanol in the presence of catalysts to attain glycerates and esters, which are converted into alcohol. Markets Toilet soaps account for more than 85% of the total demand of fatty acids. On an average 0.6-ton of fatty acids are consumed to produce 1 ton of soap. Derivatives of fatty acids are used in plasticisers, lubricants, cosmetics and alkyl resins also used as intermediates in leather, paper, dyes, rubber and paints. Fatty alcohol and their derivatives are used as washing & cleaning agents and in cosmetics, textiles, leather, paper and mineral oil additives. Fatty acid methyl Esther is used in surfactants, cosmetics and washing & cleaning agents. They are also used in the manufacture of fabric conditioners, mining biocides and mineral oil additives. Demand and supply The growth in demand for edible oils has resulted in low supply to the manufacturers of fatty acids. The major producers are those who need the production for captive consumption (almost 60%). The merchant producers constitute 40% of the total markets. Fatty alcohols These find their usage in the manufacture of personal care products such as shampoos, toothpastes, lotions, specialty chemicals, emulsifiers and detergents.
Manufacturing process They are produced through two methods Vegetable route Petrochemical route The former route uses the fatty acids from oilseeds while the latter uses paraffin and ethylene. Demand The demand is expected to grow as there are several export options and the domestic demand is also expected to remain buoyant. Outlook This business is characterized for volatility in prices and volumes. The domestic prices are not rising and there is intense competition as regards availability of the feedstock raw material of oils. There is lot of volatility in the international markets regarding he prices and the availability of the feedstock. Other fatty acids Other fatty acids consist of oleic acid, linoleic acid and Palmitic acid. These usually find their uses in paints, varnishes, soaps, emulsifying agents, margarine and supplements. Palmitic acid is used in the manufacture of lube oils, water proofing, and food grade additives. This does not have domestic producers.
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