Profile on Acetic acid

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PROFILE ON ACETIC ACID

1. PRODUCT OVERVIEW ............................................................................................................................ 2

General details .......................................................................................................................................... 2

Product application ................................................................................................................................... 2

2. INDIAN TRADE STATISTICS .................................................................................................................... 4

Import ....................................................................................................................................................... 4

Export ........................................................................................................................................................ 5

3. INDIAN SUPPLY SCENARIO .................................................................................................................... 6

Indian Manufacturers and their production level – April 2012 to March 2013 ....................................... 6

New Project ............................................................................................................................................... 6

4. INDIAN DEMAND................................................................................................................................... 8

Sectorwise demand – April 2012 to March 2013 ..................................................................................... 8

Profile on Acetic acid

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1. PRODUCT OVERVIEW

General details

Chemical formula CH3COOH

CAS number 64-19-7

Appearance Colourless, water like liquid

Product application

Sectorwise application

Sector Application details

Pharmaceuticals Eg. In the preparation of ibuprofen, Sulphamethoxazole, Chloroquin,

Metronidazole etc

Textiles In making Purified telepthalic acid (PTA)

Acidulant & Preservative Eg: Vinegar, Jams, Pickles, Ketchups etc.

Chemical synthesis For eg. Monochloroacetic acid (MCA), Vinyl Acetate Monomer (VAM)

Acetates Eg. Cellulose acetate, Ethyl Acetate, Zinc acetate, Amyl acetate etc.

Pesticides Eg. Chlorpyriphos, Acephate

Diketene & its derivatives Eg. Monomethyl acetoacetamide, ethyl acetoacetamide, MAA

Tanning / dyes Laundry sour, printing calico & dyeing

Solvents For gums, resins & volatile oils

Pickling Acetic acid / citric acid / oxalic acid or formic acid can be used to acidify

a skin to kill bacteria makes the skin easier to flesh and creates a

positive ionic charge in the skin fibres to attract tannins.

Derivative products

• Acetic anhydride

• Diketene and its derivatives

(Monomethyl acetoacetamide, ethyl acetoacetamide, methyl acetoacetate)

• Acetate esters (Cellulose acetate, ethyl acetate, zinc acetate, amyl acetate etc)

• Vinyl acetate monomer (VAM)

• Monochloro acetic acid (MCA)

• Purified terephthalic acid (PTA)

Profile on Acetic acid

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Usage of acetic acid in textile sector

‘Fabric softeners’ is added at the end of the washing process is to neutralise the very small amounts of

detergents left in the textiles and thus prevent static electricity.

The simplest way to inactivate any detergents left in the fabric is to neutralise the pH to between 6.5

and 7.5 through addition of a small amount of acetic acid. Through this method, the activity of the alkali

and surfactants is eliminated.

Acetic acid is not a fabric softener in principle but is often used for this purpose in professional

laundries.

Acetic acid is a weak organic acid which is readily degradable and has no adverse effects in the

environment except for the use of oxygen for degradation. It is also readily degradable under anaerobic

conditions.

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2. INDIAN TRADE STATISTICS

Import

Annual import

Countrywise import – Apr 2011 to Mar 12

2008-2009 2009-2010 2010-2011 2011-2012

Quantity in tonnes 285036 389650 466096 748970

0

100000

200000

300000

400000

500000

600000

700000

800000

Quantity in tonnes

Indonesia 1%Uruguay 1%Ukraine 1%

Spain 1%

France 1%

Russia 1%

U S A 2%

U Arab Emts 2%

Netherland 3%

Saudi Arab 6%

Iran 7%

Malaysia 21%Singapore 24%

China P Rp 27%

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Export

Annual export

Countrywise export

2008-2009 2009-2010 2010-2011 2011-2012

Quantity in tonnes 12589 13022 8367 23418

0

5000

10000

15000

20000

25000

Quantity in tonnes

Others 11%

Netherland 4%

Bangladesh Pr 5%

Egypt A Rp 6%

U Arab Emts 18%

Belgium 56%

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3. INDIAN SUPPLY SCENARIO

Indian Manufacturers and their production level – April 2012 to March 2013

In tonnes

Name of the organisation Installed capacity Production

GNFC, Gujarat 150000 170500

Industrial Organics, Ludhiana 75000 11500

Trichy Distrilleries, Trichy 24000 18000

Total 249000 200000

Most of the units including Jubilant Organosys and Somaiya Organics confirmed that they stopped

production of acetic acid. They imported acetic acid for captive consumption as well as for supply to

other consumers in India.

New Project

Company Indian Oil Corp (IOC) JV with BP

Project capacity One million tonnes per annum of acetic acid

Project location Gujarat

Process BP's Cativa XL technology

Schedule 2015

The Indian market is sufficiently large to accommodate one worldscale plant. But Reliance Industries has

talked about building plants for acetic acid and derivatives at Jamnagar, Gujarat. This project too has

been in the pipeline for a few years and it remains to be seen if the company will be interested in

pursuing it after the BP-IOC announcement.

It is also interesting that BP which has joined hands with Reliance in the gas value chain has decided to

partner IOC for acetic acid.

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Assam Petrochemicals Limited (APL)

Project capacity 72000 tonnes per annum of acetic acid

150,000 tonnes per annum of methanol

Project cost Rs. 3.5 billion (for acetic acid)

Rs. 11 billion (for both combined plant of methanol and acetic acid)

Plant location Namrup, assam

Project schedule Q III, 2015

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4. INDIAN DEMAND

All India demand for acetic acid 950,000 tonnes

Sectorwise demand – April 2012 to March 2013

PTA

35%

Acetate and acetic

anhydride

31%

MCA

6%

Pharmaceuticals

8%

Pesticides

6%

Tanning, dyes and

dye intermediate

5%

Textile processing

3%

Food and other

miscellaneous

sectors

6%