nortech trinity frp tanks - opportunity in india

www.nortechtrinity.com

FRP Tanks

Nortech Trinity India

Private Limited FRP TANKS OPPORTUNITY IN INDIA

http://www.nortechtrinity.com/


FRP Business

Background

China is undoubtedly the powerhouse of the Asian region for FRP products and been exporting a lot to all developed & developing countries and also to the domestic industry consumption specially to Aviation, Transportation and Water & Chemical Storage Tanks, but with a population of 1.25 billion (second only to China) and a booming economy, India is also attracting a lot of attention. India's gross domestic product (GDP) growth rate is around 8.5% (2016), labour costs are low, the country has a strong base of skilled IT professionals, and English is widely spoken in the business world. Not surprisingly many foreign investors and companies are planning to, or have already, set up production units in India for FRP products.

In this environment the Indian composites industry has been doing quite well, registering a 25-30% annual growth rate over the last ten consecutive years, more than twice that of general industrial growth and three times that of GDP. This is according to the industrial growth and observing the new applications of Composites in day to day life.

Indian manufacturers of composite products are generally small- to medium-sized companies, There are approximate 700 medium-sized companies and over 2000 small companies (turnover less than 2.5 million rupees). There are over 100 larger companies. Around 50 Midsize & Large companies are exporting their products and some of them are having manufacturing and Marketing offices offshore as well.

Despite growth in the industry and introduction of new technologies specially in Large FRP Tanks and other FRP applications Indian composites manufacturers still facing challenges and looking for solutions:

availability of quality raw materials;

high price sensitivity of the market, combined with rising raw materials costs;

lack of skilled labours; and

lack of awareness of composites in the Indian industrial world.



Quality assurance and standardisation are further issues which concern manufacturers.

India needs quality raw materials manufacturers to set up in the country, including producers of glass fibre, speciality resins and chemicals, and styrene monomer. What is lacking is development of new raw material which provides more strength and reduce the wall thickness with good finish and meet the requirements of International large buyers.

“Raw materials prices are generally higher in India than in the international market and also the International Polymer suppliers are selling the grades which are superior and of higher prices,” Industry experts are having limited options available for the raw material sourcing which affects the cost competitiveness of composite products compared to products made of conventional materials. But this gap is narrowing. Import is possible but many cannot afford to import in bulk. Suppliers should open manufacturing plants and Marketing offices in India to provide the suitable raw materials at affordable cost. This will surely help to expand the market.”

The awareness of new technology and processing techniques with Indian Industry engineers and the general public about composites is still poor, and very few academic institutions teach composites. Services such as industrial training, designing, mould & design and mould making are inadequate and this is slowing down technological growth in India, Mainly quality moulds are being imported from China & Taiwan and other technological countries.

Growth areas

As well as the Indian railway industry, other potential growth markets for composites in India include infrastructure, chemicals, transport, and wind energy. Indian companies also believe there are huge opportunities for offshoring manufacturing of labour-intensive, value-added composite products for the USA and Europe and Middle East countries.

Wind energy

The Indian wind energy sector has an installed capacity of 23,439.26 MW (as on March 31, 2015). In terms

of wind power installed capacity, India is ranked 5th in the World. Today India is a major player in the global

wind energy market.

The potential is far from exhausted. Indian Wind Energy Association has estimated that with the current level of technology, the ‘on-shore’ potential for utilization of wind energy for electricity generation is of the order of 102 GW. The unexploited resource availability has the potential to sustain the growth of wind energy sector in India in the years to come.

Leading wind turbine blade manufacturer LM Glasfiber has two factories for manufacturing blades in India and it opened a new R&D Centre in Bangalore in May, joining its existing R&D Centres in Denmark and the Netherlands. The Indian Centre, which will employ more than 40 engineers by the end of the year, will specialise in finite element method (FEM), computational fluid dynamics (CFD) and computer-aided design (CAD) for product development.

Defense & Aviation Industry

Indian industry today is on the threshold of entering into a new era where it will assume greater

responsibility in making the nation self-reliant in Defense Production. The resurgence of India’s



manufacturing sector has been remarkable. Not only are the profits soaring, the sector is also making its

presence felt abroad as many Indian firms are becoming transnational companies.

The Indian manufacturing sector is internationally competitive with international quality standards,

efficiency and manufacturing facilities. India is fast developing into a manufacturing hub for world

corporations wanting to leverage the sector’s proven skills in product design, reconfiguration and

customization with creativity, assured quality and value addition.

India, also keen to strengthen its own aerospace industry and has asked major weapon exporting

countries to transfer technology to India.

India is one of the fastest growing aviation markets in the world. According to the Centre for Asia Pacific Aviation, passenger numbers are growing faster in India than anywhere else. The booming economy, people having money to spend on travel, cheap fares and numerous new, budget airlines are driving this growth. Hundreds of new aircraft are being ordered (Boeing estimates that India will need over 2500 new aircrafts over the next 20 years), airports expanded, and new infrastructure built. Growth is also anticipated in the military aviation sector.

Ship Industry

With the use of fiber reinforced polymer set to rocket in the automotive industry, Fiber reinforced polymer

(FRP) composites have been an accepted material in boatbuilding and motorsport for over 60 years.

Composites make up more than half the structural airframes of modern commercial aircraft, such as the

Airbus A350 XWB and the Boeing 787 Dreamliner. Their use is set to rocket in mainstream automotive as

rapid manufacturing technologies are developed. FRP applications in construction and infrastructure are

growing since early FRP bridges were installed twenty years ago. The weight reduction achievable with

composites is enabling applications which would not be possible with metals, such as longer wind turbine

blades and deeper risers for oil wells.

Railway

Indian Railways is a state-owned railway company, responsible for rail transport in India. It is owned and

operated by the Government of India through the Ministry of Railways. It is one of the world's largest railway

networks comprising 115,000 km (71,000 mi) of track over a route of 67,312 km (41,826 mi) and 7,112

stations In 2015-16, IR carried 8.101 billion passengers annually or more than 22 million passengers a day

and 1.107 billion tons of freight in the year. In 2014–2015 Indian Railways had revenues of ₹1.709 trillion

(US$25 billion) which consists of ₹1.118 trillion (US$17 billion) from freight and ₹451.26 billion

(US$6.7 billion) from passengers tickets.

Indian Railways runs around 125 000 trains every day, of which 7500 are passenger trains. It transports 25

million passengers each day. Indian Railways is investing in the renewal of old tracks, bridges, track

circuiting and rolling stock as well as new lines and signalling, upgrading of current trains and manufacture

of new models. Lot of FRP products are being introduced in compartments and in last five years, in new

trains about 40% FRP is being used to reduce the Weight, Lower down the cost and improve the aesthetics

and luxury.



Automotive Industry

The Indian automotive sector is booming. The number of vehicles on the roads has been growing at an average rate of around 10% a year over the last five years. Exports are increasing and the component industry is becoming an attractive Tier 1/original equipment manufacturer (OEM) supplier.

The automotive industry in India is one of the largest in the world with an annual production of 23.96 million vehicles in FY 2015-16, following a growth of 2.57 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country's gross domestic product (GDP). The Two Wheelers segment, with 81 per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a young population. Moreover, the growing interest of companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share.

India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014-15, automobile exports grew by 15 per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020

The Ministry of Heavy Industries & Public Enterprises Automotive Mission Plan 2012-2017 wants to make India a global automotive hub. It believes that a US$225 billion business in the design and manufacture of cars and automotive components can be created in the country by 2020.

Construction and infrastructure

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling

India’s overall development and enjoys intense focus from Government for initiating policies that would

ensure time-bound creation of world class infrastructure in the country. Mr Nitin Gadkari, Minister of Road

Transport and Highways, and Shipping, has announced the government’s target of Rs 25 trillion (US$

376.53 billion) investment in infrastructure over a period of three years, which will include Rs 8 trillion (US$

120.49 billion) for developing 27 industrial clusters and an additional Rs 5 trillion (US$ 75.30 billion) for

road, railway and port connectivity projects.

Infrastructure sector includes power, bridges, dams, roads and urban infrastructure development. In August

2016, India jumped 19 places in World Bank's Logistics Performance Index (LPI) 2016, to rank 35th

amongst 160 countries.

Market Size

India needs Rs 31 trillion (US$ 454.83 billion) to be spent on infrastructure development over the next five

years, with 70 per cent of funds needed for power, roads and urban infrastructure segments.

The Indian power sector itself has an investment potential of US$ 250 billion in the next 4-5 years, providing

immense opportunities in power generation, distribution, transmission and equipment, according to Mr

Piyush Goyal, Union minister of coal, power and renewable energy.



The Indian construction equipment industry is reviving after a gap of four years and is expected to grow to

US$ 5 billion by FY2019-20 from current size of US$ 2.8 billion, according to a report@ released by the

Indian Construction Equipment Manufacturers’ Association (ICEMA).

Foreign Direct Investment (FDI) received in construction development sector from April 2000 to March 2016

stood at US$ 24.19 billion, according to the Department of Industrial Policy and Promotion (DIPP).

The piping industry is benefiting from all this activity. Demand for filament wound composite pipe is strong,

and many Indian companies are setting up production plants.

FRP Tank Business

FRP (Fiber Reinforced Plastics) technology came into existence during World War II until then tanks were

made of steel and other traditional materials. Later in 1960s more efficient manufacturing processes and

advancement in resin technology helped to create rust-proof, strong and durable tanks. FRP tanks grew in

acceptance by chemical, petroleum, paper and pulp industries as a viable and economical solution for

chemical and fuel storage. This success of FRP tanks opened doors for their use in other industries. North

America, the largest industry bases in the world, extensively uses FRP tanks in areas like chemical, oil &

gas, water/wastewater treatment plants, pulp/paper, septic etc. FRP have the advantages of corrosion

resistance, high strength-to-weight ratio, low maintenance, and a longer life cycle as compared to other

traditional materials such as concrete and steel.

Early Underground Petroleum Storage Tanks in Europe and USA were made of steel, some with an external

coating, and others without it. After some years of service, it became apparent that many of these steel

tanks were leaking, inspite of having a supposedly adequate protective coating. Studies showed that

almost 27% of steel tanks, even after protective coating, were leaking after 15 years. The cause of

the leaks was attributed to a wide variety of metal corrosion.

The Environment Protection Agency (EPA) of the USA introduced strict regulations to protect tanks from

polluting ground water resources. This led the American Petroleum Institute (API) to facilitate development

of corrosion resistant FRP Tanks and to encourage its use in the USA .

With the passing years, FRP has emerged as the favoured material of construction for Underground

Storage Tanks, globally. By 1988, CHEVRON had replaced and upgraded 75% of their steel tanks with

FRP Tanks. By 1989, MOBIL OIL had replaced 90% of their steel tanks with non-corrosive fiberglass.

Studies show that FRP Tanks installed 30 years back in USA are giving trouble-free service even in highly

corrosion-prone areas.

Indian soils are reported to have one of the highest soil corrosivity in the world. Replacement of all

underground steel tanks with FRP Tanks is an eventuality. FRP offers immense potential and great

advantages as the material of construction for Storage Tanks.



In India, the oil and natural gas industry has now started embracing this global trend, with new Underground

Petroleum Storage Tanks being made in FRP. Also, older tanks are being replaced by their FRP

counterparts.

ADVANTAGES

Corrosion Resistant

Maintenance Free

Long Service Life of over 50 years without replacement or maintenance

Safe for Environment

Light Weight – Easier Handling

Smooth Inner Surface – Lower Sludge Formation, Lower Cleaning costs

Leak Proof – Saves Material Loss

NOZZLES

All nozzles for our FRP Tanks are FRP Flanges, integrally moulded with the FRP Tank body. Flanges are

fabricated as per numerous Bolt Dimension Systems like ASTM, DIN, JIS, BS etc. as specified by client.

INSTALLATION

FRP Tanks, being light in weight, offer great advantages for material handling. They require handling

equipments of considerably lower capacity, thereby easing installation. Further, they require lighter

foundation and thus help reduce overall costs. Once installed, they are virtually maintenance free.

REPAIR

Repair of FRP Tanks for Transit Damage or Damage due to poor handling can be easily carried out at

site in a very short notice, by skilled site teams.

APPLICATIONS

Potable Water Storage Tanks

Underground Petroleum Storage Tanks

Chemical Storage Tanks

Large Capacity Panel Tanks

Mobile Tanks mounted on Trailers

High Pressure Light Weight Cylinders

EXPERIENCE

We have supplied numerous FRP Sump Tanks and FRP Aboveground AFFF Storage Tanks to IOCL

Pipelines and they are all in satisfactory operation till date.



FRP Composites offers various solutions for the chemical processing industries, including major processing plants for organic and inorganic chemical producers, petrochemical components, industrial gas producers, producers of plastic, rubbers, fibres or resins, paint and coating producers, producers of caustic soda, chlorine and carbonates. Plasticon Composites specialises in supplying process and storage equipment for these industries. Its potential customers include several major chemical plants.

Chemical Industries can be served

Petrochemical

Chlorine plants (chloralkali process)

Pulp & paper

Sulphuric acid plants

Fertiliser plants (nitrogenous and phosphatic)

Chemical logistics

Pharmaceutics & cosmetics

Plastics & elastomers

FRP Composites offers the following maintenance services

Inspections

Refurbishments

Preventive maintenance

Facility upgrades

Repairs

Read more about our services

Applications Suitable for :

Petroleum products

Petrol

Jet fuel

Aviation fuel

Motor oil

Kerosene

Diesel fuel

Ethanol and/or methanol blends

Upto and including 100% oxygenated motor fuels


http://www.plasticoncomposites.com/services


Introduction

In 2015, Nortech Trinity India Private Limited identified the opportunity of FRP Tanks in Oil & Gas Business segment and can be helpful to organizations who are eying Indian FRP Tank business to improve the profitability and grow as one of the major player in Indian FRP Tank business. Nortech Trinity can help companies in preparing themselves for the identification of cities, bidding and post bidding and also in execution of the Indian FRP Tank business in most optimized manner.

Who We Are We are driven by a group of motivated & experienced individuals with a thirst for thought leadership.

Recruited from the best of Indian and international from Oil, Gas and Petrochemical industry, our advisors

possess a great understanding of business, superior problem solving skills and most importantly, carry the

sheer ethical values and confidentiality.

How we reached here

"Nortech Trinity has a team of highly experienced professionals with global

expertise in the oil, gas and Petrochemicals industry." We use a multi-disciplinary approach to provide support to our clients with accurate and cost-effective

analysis; Nortech Trinity Group can assist you with your oil, gas and Petrochemicals consulting needs.

Why Us

Nortech Trinty Group prides itself on our very own quality professionals. Highly innovative and motivated, our

employees form the backbone of our organization’s success. Our advisors have the vast industry experience

and business acumen to solve critical problems which are often beyond the expertise of client organizations.

Over vast consulting experience has made us a twice more proficient with regard to industry and process

expertise. Our methods and approaches towards tackling client issues have a proven track record and we are

constantly innovating to develop new techniques and frameworks that give our clients the much needed edge

over their competitors.



How Nortech Trinity is Effective

Helpful in Key Support required from approval by EIL, IOCL and other PSU’s and

State/Municipal/Local Authorities

• Need to take a rational view for Strategy for India Entry:

• Market Study and need for JV if any

• Setting up Manufacturing unit & all necessary approvals & Clearances

• Product Launch and getting approval, trial runs, studies

• Pricing & Distribution and other required arrangements

“Nortech Trinity - Opportunity in FRP Tank

Business ” discusses the following aspects

of Oil & Gas & Pipeline segments in India:

- FRP Tank & Composites Production & Consumption Present Status and Future Outlook, 2020

- FRP Tank & Composites Present Demand and Future Outlook, 2020

- India Oil & Gas, Pipeline Infrastructure Development (Major, Existing and In Execution pipeline)

- Financial Bidding Analysis and Computation

- Policy & Regulatory Framework

- Changing Market Trends & Emerging Opportunities in Oil & Gas

- Competitive Landscape & Strategic Recommendations

Why You Should consult Nortech Trinity?

- To gain an in-depth understanding of FRP Tank & Composites market across the India

- To identify the on-going trends and anticipated growth over the next 15 years

- To help industry consultants and FRP Tank & Composites companies align their market-centric

strategies

- To obtain research based business decisions and add weight to presentations and marketing material

- To gain competitive knowledge of leading market players

- To avail 10% customization in the report without any extra charges and get the research data or trends

added in the report as per the buyer’s specific needs



NOTICE:

This document (the “Information Teaser”) is only intended to give general information regarding an “Investment Opportunity in

the FRP & Composites Tanks in India” or “the Transaction” and Nortech Trinity India Private Ltd. (“the company”), and does not

purport to contain all information that may be required to evaluate any possible transaction and is not intended to form the basis

of any investment decision to acquire any part (or all) of the Company. This document cannot be construed as a recommendation,

an offer or an invitation to make an offer to acquire any interest or participation in the Company or to enter into any type of

contract under any jurisdiction. Recipients of this document should ensure that they comply with all relevant legislation and rules

that may be applicable to them. This document has been prepared by Nortech Trinity India Private Limited (“the Advisors”)

together with the management of the Company. The content of this document is not verified by the Advisors or the Company.

The Advisors and the Company accept no liability or responsibility whatsoever for the contents, accuracy or completeness of this

document (including any statements with respect to projections or prospects of the deal and related assumptions) or for

infringement by any recipients of this document of legislation of any nature whatsoever. This document is incomplete without

reference to and should be viewed solely in conjunction with, any oral briefing provided by the Advisors. It reflects prevailing

conditions and our initial views as of this date which we reserve the right to change. The Advisors are not and shall not be obliged

to update or correct any information set out in this document. This document is for the exclusive use of each person to whom it

is addressed and their advisers, and is being supplied on a confidential basis solely and may not be reproduced or further

distributed to any other person or publication in whole or in part for any purpose. The contents and information of this document

and the document itself are proprietary of the Company and may not be relied upon by or disclosed to any third persons,

companies, enterprises or institutions or used for any other purpose than in connection with the considering of the proposed

Deal. The issue of this document shall not be taken as any form of commitment on the part of the Company and it reserves the

right without advance notice, not to accept any proposal, nor to proceed with any transaction and to terminate communications,

conversations, or negotiations at any time prior to the signing of any other document or agreement, without liability to any

selected potential interested party or third party for any costs incurred in submitting a proposal or otherwise. The information

set out in this document will not form the basis of any contract. In the case of a negotiation taking place, the successful interested

party will be required to acknowledge in an agreement that it has not relied on or been induced to enter into such agreement by

any representation or warranty, save expressly set out in such agreement. This document is governed by and construed in

accordance with Indian Law.

NORTECH TRINITY INDIA PRIVATE LIMITED

ASHUTOSH GUPTA

MD & CEO

405, 4TH FLOOR, STATESMAN HOUSE,

BARAKHAMBA ROAD, CONNAUGHT PLACE,

NEW DELHI-110001, INDIA

EMAIL: [email protected]

WEBSITE: WWW.NORTECHTRINITY.COM Mobile: +91-99714-66668,


mailto:[email protected]
