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Citric Acid This is used in foods & beverages, pharma, textile, dyeing, printing, preservatives (flavor), for avoiding discoloration in edible oils, cosmetics, soaps and detergents. It is available in two forms Monohydrous citric acid - containing 90% water. Anhydrous citric acid - containing 100% citric acid. This is a white translucent crystalline hygroscopic product. Markets The pharma sector contributes around 40% of the total demand. This is used as the acidulant in the astringent preparations and as a flavoring agent in syrups. This is used in carbonated drinks to complement the flavor. In fruit drinks it is used for enhancing their acidity. It is used as a preservative in processed foods. It is used as a fixative for the printing of synthetic textiles. It is also used for prevention of discoloration and deterioration of the edible oils. It is also used in the electroplating of the metals. It is used in the manufacturing of detergents & cleaners, cosmetics & toiletries. Manufacturing process There are three processes to manufacture citric acid: Extraction from citric foods This process is an extension of the food processing industry. It is widely used though not very economical. Synthesis The chemical reactions produce a very low yield, are not very cost effective and are hazardous in nature. Fermentation This is the most economical method, which involves the breaking of the tricarboxylic acid cycle, which is the chain reaction in the process of the break down of sugar into carbon dioxide, water and energy. The major raw material in India for the production of citric acid is the sugar molasses. Pricing mechanism and cost profile Raw material and power account for 25% of the total cost of production. Molasses decontrol has instilled the volatility in the prices of the raw material and hence the profitability profile has become volatile. The capital cost of setting up a citric acid plant is not an entry barrier but the choice of technology has a profound impact on the performance of the industry. Outlook The total production is expected to be around 24000ton, while the consumption is expected to be around 14000ton.The demand is expected to grow at around 8-9%. The basic demand will come from the food & beverages sector and the detergent markets. The growth in this sector is expected to be higher than the pharmaceutical industry. This product does face the threat of substitution from STPP in the soaps & detergent sector. Other sector reports Previous chapter Next chapter

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