Dr. Rajeev Churi

President

Oil Technologists’ Association of India (WZ)

1. Vegetable oil industry in India

2. Global Oelochemical market

3. Indian Oleochemical scenario

4. Emerging applications

5. Biolubricants; detailed outlook

Estimated turnover of vegetable oil and oilseed sector: Rs 150,000 crores (USD 25 billion)

Import-Export turnover : Rs 80,000 crores (USD 13 billion)

Import of edible oils (2013-14): 11.8 MT valued at above Rs 60,000 crores

Import dependency: 65%

Average oil seeds productivity: 1.15 MT / hectare

FOR 2013-14, INDIA ACCOUNTED FOR WORD’S:

7.69% oilseed production

7.00% oilseed crushing

4.95% oil production

10.35% oil consumption

14.64% oil import

Source: Mr. Dorab Mistry, ISDC 2014, Goa

OILS Actual 13-14 Estimated 14-15

Palm 7907 8950

Soya 1952 1700

Sunflower 1509 1200

Others 450 450

Total 11818 12300

Historically, about 12% to 14% of the world’s vegetable oil production has been used for oleo-chemicals production and about 12% is used for biodiesel and rest for food applications.

As per industry sources, the global oleo-chemical market for year 2014 was estimated of about 15.0 MT

Fatty Acids: 7.3 MT

Fatty Alcohols: 4.9 MT

Glycerol: 2.8 MT

It is expected to reach global market to about 18 MT in

year 2018

The global oleo-chemicals market dominated by Asia Pacific with 68% of the global market share

Asia Pacific also accounted for over 60% of the global capacity for the oleo-chemicals

Asia Pacific market for oleo-chemicals expected to grow at a CAGR of 8.2% for next few years

Europe was the second largest market with 18% of the global oleo-chemicals market.

FATTY ACIDS

Total consumption is about 0.9 MT, out of which about 0.7 MT is captive consumption mainly soap making

FATTY ALCOHOLS

Installed capacity: 1,85,000 T

Total Consumption: 1,25,000 T

Total imports: 75,000 T

GLYCEROL

Total consumption: 1,10,000 T

Indian Oleo-chemical industry saddled with problem of Inverted export tax.

Soap: 30 %

Polymer : 16 %

Derivatives : 18 %

Rubber: 6 %

Coatings : 6 %

Personal Care: 2 %

Foods: 2 %

Others: 16 %

Middle Chain alcohols: 72 %

Long Chain alcohols: 28 %

CONSUMPTION

Home & Personal Care Industry : 66 %

Other : 34 %

Personal / Oral care: 27 %

Coatings: 27 %

Pharmaceuticals: 16 %

Food: 9 %

Specialties: 6 %

Coolants: 4 %

Others: 11 %

Godrej

VVF

Rayalseema

HLL

Jocil,

Sunshine

Food Fats Godrej

Nirma

Galaxy

Rhodia

THE DEMAND FOR OLEO-CHEMICALS IS ALSO DRIVEN BY

-Products are Safer compared to mineral feed stock

-Environmental friendly due to biodegradability, less polluting

-Sustainable source

-REACH like regulations

Sustainable Development

Responsible care initiatives

-Biosurfactants

-Biopolymers

-Biolubricants

Global market for Biopolymer in 2020 is expected to reach 20% MT, 7% of total polymer requirement

Examples of uses of oleo-chemical / derivatives: - Polyamides from Castor Oil - Polyurethanes are synthesized by reacting aromatic isocyanate adduct

with polyols/ phosphate ester polyols derived from Soybean / other - Polyesters by condensation polymerization of the monoglycerides

with phthalic anhydride - Metal stearate plus oil incorporating as prooxidants in polymers like

ployethylene for higher biodegradation. - Oleo Ester impregnation with bacterial cellulose for better properties

Methyl ether sulfonate substitute for LABs:

Inherent advantages like , such as actives and purity, gentle on the skin, has low di-salt content, no volatiles, white or near-white in colour and is suitable for both liquid and powder detergents.

Expected global consumption of MES in 2020 about 1.2 MT

Another possible application under study:

The olefins obtained by cracking of oils are alkylated with

cumene and subsequently sulfonated and neutralized to obtained alkyl cumene sulfonates, exhibit excellent surface active properties

- Renewable source

- Environment friendly

- Least toxic

- Excellent lubricity

- Excellent Viscosity index

- Inherent tribological properties

- Milder on skin contact

Manufactured from mineral based oils and chemical additives

Base oils components are paraffinic, naphthenic, aromatic and other cyclic

Additives have metallic and polymeric components

Bio-degradability and toxicity are concern

Used / waste / spilled over lubricants and additives damaging the eco system, especially total loss systems

AUTOMOTIVE OILS Engine oils Mechanical Transmission oils Hydraulic Transmission oils INDUSTRIAL OILS Machine oils Gear oils Slideways oils Compression oils Refrigeration oils Vacuum Pump oils Hydraulic oils METAL WORKING OILS Cutting oils, soluble & neat Grinding oils Drawing compounds Rolling oils Quenching oils & Tempering oils Broaching Oil Deep Hole Drilling Oil Honing Oil

INSULATING OILS

Transformer oils

Cable compounds

HEAT TRANSFER OILS

PROCESS OILS

MARINE LUBRICANTS

AVIATION LUBRICANTS

TURBINE OILS

GREASES

• ENVIRONMENTAL EXPOSURE CONCERN • Farm harvesting machines • Forestry machines • Marine boats / water sport operating in river and lakes • Tunneling machines etc

ACCIDENTAL EXPOSURE AND TOXICITY MAIN CONCERN Food Processing machinery Confectionery machinery Pharmaceuticals machinery

TECHNICAL ISSUES Thermal & oxidative stability Viscosity grades Pour point

OTHER ISSUE Fluctuating cost of feed stock

Current Lubricant Market

Global lube market 45.5 MT

Asia pacific lube market 10.5 MT

Indian lube market 1.9 MT, 5th in the world

Current Biolubricant market: 1.3 MT

Projected 2020 Global Lubricant market: 54.0 MT

Projected 2020 Biolubricant market: 3.5 MT

75-90% of a typical lubricant is made up of base oil/s . These base oils can naturally contain straight or branched

hydrocarbons; hydrocarbon molecules with aromatics rings attached or these chains can be produced by further chemical reactions of the base oils.

Remainder of the lubricant comprises of a variety of additives, which are used to improve performance.

VARIOUS TYPES OF ADDITIVES Anti wear additives Corrosion inhibitors Anti Oxidants Detergents Dispersants Antifoam Additives Larger polymer molecules called Viscosity Modifier

Sulfurised triglycerides, fatty esters, fatty acids as extreme pressure / anti-weld agents

Fatty acid derivatives in Engine oil formulation as friction modifier

Fatty acids (soap ) as emulsifier component Fatty acids for HLB balance Fatty esters and alkanolamides as for better emulsion Fatty acids derivatives in corrosion inhibitor formulations ( polar

compounds have better affinity to metal surface), alkanolamines, alkylamines, etc

Fatty acids in scourable textile lubricating oils such as spinning oils, knitting oils etc

Fatty acids in rolling oils Fatty soaps in metal drawing compounds Polyol esters in synthetic lubricants, etc Trialkyl phosphate esters as lubricity agent from saturated fatty

alcohols TMP based esters Calcium fatty acid sulfonates

-Alkylated esters with mild polarity with higher degree of polymerization to form long chain compounds with mildly polar intermediate pendants resulted compounds give additive activity as pour point depressants, wax crystal modifiers, friction reducers and flow improvers.

-Dimer acids used as corrosion inhibitor and the esters as

lubricant base stocks (as esters).

-Zinc dialkyldithiophosphates: Anti wear agent, diesel fuel additives

- Fatty Alcohols + Phosphorous Pentasulphide

- 2 (RO)2PS2H + ZnO → Zn[(S2P(OR)2]2 + H2O

Regulatory requirements will be more demanding

Significant value addition opportunities available for emerging applications.

Companies with strong R & D capabilities will have an edge

Oleochemical companies can collaborate with end user industry

Thank you