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Glycerine Glycerine is clear, colorless, odorless liquid with a sweet taste. It is used as intermediates in toothpaste, cosmetics, pharmaceuticals, explosives and paints & enamels. Production process During the manufacture of the fatty acids glycerine is produced as a by-product. This process is carried on in very high temperatures and pressure. The counterflow of the water absorbs glycerol from the fatty acid phase. This water contains 12% glycerol. Evaporation results in purified and concentrated glycerol. It is further distilled and condensed so as to obtain 99% pure glycerol. There is also a synthetic process, which involves chlorination, and hydrolysis of propylene. This process involves purification in different stages, as it is not available in the manufacture of glycerine. Markets Toothpastes and cosmetics contribute 31% of the total demand. Among others pharmaceuticals contribute 19%, explosives another 16% and the remaining 16% of the total demand. The toiletries and cosmetic industry is the largest consumer. Toothpaste and cosmetics together account for a major chunk of the glycerine production. The white toothpaste segment consumes a lot of glycerine though there has been a decline in the demand lately. The demand has fallen mainly due to the introduction of the gel system in toothpastes. In this sector the problem of substitution of glycerine is maximum. Sorbitol can easily replace the glycerine and the effects in terms of quality are also not very substantial. Glycerine can be used in the production of resins, which are in turn used in the production of industrial paints. Substitution of glycerine is again a major problem in this field. In the explosives industry the substitution of glycerine by ammonium nitrate is taking place mainly because of the following drawbacks. The process of manufacture is cumbersome. Transportation is hazardous. These are high intensity explosives. Glycerine can replace at least 50% of the total consumption of nitroglycerine.   In the dyes sector this is used in the manufacture of vat dyes. The substitution threat in the vat dyes markets, due to pentaerythritol is very high. Capacity The industry is highly concentrated with top three to four players dominating 60-65% of the total installed capacity. The capacities have enhanced commensurate to the demand in the soap industry. Vegetable oils which are the major feedstock for these fatty acids is not in easy availability as the vegetable oils are being diverted to the manufacture of edible oils where there is a severe shortage. Thus the soap and personal care manufacturers are increasingly importing vegetable oils, as they are cheaper compared to the Indian produce and easily available. The total production is expected to be around 20,000ton. The economics of the production of glycerine are totally dependent on the price of the vegetable oils, which constitute 60-65% of the total costs of production. The price has also a substitution angle. Since this can be easily substituted the producers do not have much of the leverage in pricing the product. Palm oil, which is a major feedstock, is entirely imported from Indonesia and Malaysia. Other sector reports Previous chapter Next chapter

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