Chemical company based on producing Liquid Caustic Soda

What are Caustic flakes ?

Caustic flakes are a white, solid form of sodium hydroxide (NaOH).

Some Properties of Caustic Flakes are -

Formula: NaOH
Appearance: White, crystalline flakes

Highly Caustic: Caustic flakes can cause severe chemical burns.
Hygroscopic: They absorb moisture and carbon dioxide from the air.
Solubility: Highly soluble in water.

Material needed to form liquid caustic soda from caustic flakes -

Caustic soda flakes
Distilled water
Container resistant to caustic substances (e.g., polyethylene or polypropylene)
Protective gear (gloves, goggles, and apron)
Stirring rod or mechanical stirrer

Why should I open chemical industry on Liquid Caustic Soda from Caustic flakes

Producing local liquid caustic soda from caustic flakes can save lots of money utilized in importing ready-made liquid caustic soda.
Establishing the chemical industry provides employment to many people; hence, it improves the local economy.
A production plant locally gives assured supply of the liquid caustic soda at any time, hence reducing over-dependency on the supplier.
Adding value to the raw materials will increase the value into more valuable forms; hence, the industry is more profitable.
The time lapse could drastically reduce if liquid caustic soda were to be produced in the country to ascertain its availability on time for these various industrial processes.
At the national level, having liquid caustic soda produced locally would ensure the reduction in mileage of dangerous chemicals and, by extension, the reduction in the exposure risks of accidents that could result during such transportation.
The process of the making of the liquid caustic soda will easily be regulated in a bid to adhere to the safety and environmental standards when it is being made domestically.
A domestic chemical industry in caustic flake-to-liquid-caustic-soda conversion can actually spur innovation in process methodologies, giving more efficient and cleaner processes.
Research and Development: The regional production facilities can engage in R&D for quality improvement of liquid caustic soda and the discovery of new applications.
A domestic source of production for vital chemicals like liquid caustic soda may be of importance to national security, with guaranteed access to the raw materials necessary for the survival of strategic industries. It would really make the supply chain more resilient to global disruption in case of political upsets, trade restrictions, or natural disasters.
The uses of liquid caustic soda run across industries such as textiles, paper, food processing, water treatment, and many other chemical-making processes. This demand can be supplied by a local production unit.

One such facility locally tailors the required concentration and quality for the various industries.

Challenges -

Chemical company on liquid caustic soda need safe storage and handling are very crucial in the prevention of accidents and to ensure the people's safety.
Compliance with the code of practice at local, national, and international levels about the handling, storage, and disposal of dangerous chemicals is a very time-consuming and boring job.
Regulations of the disposal concerning the environment waste and emissions.
Chemical waste and byproducts disposal remain huge environmental concerns
Emission and the effluent management to minimize the environmental impact.
Fluctuations in the price of raw materials, e.g., sodium chloride or any other feedstock, will impact the cost of production.
Safety measures, maintenance of equipment, and regulatory compliance often cost a lot.
Manufacturing caustic flakes require sophisticated types of equipment and technologies.
There must be proper infrastructural arrangement with respect to storage, handling, and distribution facilities.
Chemical industries are most competitive ones. The market is often captured by the established ones.
Intense competition might squeeze prices and hurt profit margins.
Ensuring that the stream of raw materials are continuously supplied and handling the disturbances that come with such a supply chain might be very testing.
Effective distribution and logistics are necessary to get the products to the customer on time.
It can be challenging to find and hold onto the talent one needs to manufacture and handle dangerous chemicals.
Safety training and updating operational procedures in chemical plants takes ongoing effort to update the relevant workforce.
Market fluctuations for liquid caustic flakes can have profound implications for production planning and profitability.
An economic slump or an industrial upturn can have an influence on the demand for chemical products
Concerns related to managing the impact of balancing industrial activities and adjusting to environmental sustainability and corporate responsibility
Management of public perception and informal stakeholder expectations on environmental and safety practices.

Read Project Report : Chemicals (Organic, Inorganic, Industrial) Projects

Considerations -

While exploring growth opportunities in end-use sectors to secure a stable market for caustic soda.Observe all measures concerning safety as outlined in the local and international standards while handling and storing products.
Ensure satisfaction of environmental regulations pertaining to disposal, emission, and possible chemical spillage.
Establish rigorous quality control processes to ascertain uniformity in standards of products and meet the requirements that are set by the industry.
Ensure reliable, lower-cost sources of raw materials. Assure the ability to transport the materials to the manufacturing facility.
Control the cost of raw materials and supply chain risk to profitability.
Provide PPE and ensure proper usage.
Reduce the environmental footprint through available opportunities in recycling and energy efficiency.
In the chemical company of liquid caustic soda Raw materials should be of good quality.

Is it worth opening ?

Yes, it will be worth opening a chemical company which is based on producing liquid caustic soda from Caustic flakes because of the increasing high demand for caustic soda. Also the competition in this domain of chemical companies is not that high as in other domains. If you are looking to provide the customers or suppliers with a good quality finished product then you can go for it.

CONCLUSION

Opening a chemical industry to produce liquid caustic soda from caustic flakes is very strategic, considering the growing demands in the industries. It is simply a process of dissolving solid sodium hydroxide in water. The obtained solution will be an important chemical applied in various manufacturing, water treatment, and food processing industries. Having a policy in place for stringent safety measures and efficient production methods, the industry will only be well-timed for the current high demand. Again, this can provide high economic value and a good position in the chemical supply chain, corresponding to appropriate investment in technology and infrastructure that can in fact supply local or international market demand.

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ABOUT NPCS

NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:

Good Present/Future Demand
Export-Import Market Potential
Raw Material & Manpower Availability
Project Costs and Payback Period

We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.

Reasons for buying the report:

This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.
This report provides vital information on the product like its definition, characteristics and segmentation.
This report helps you market and place the product correctly by identifying the target customer group of the product.
This report helps you understand the viability of the project by disclosing details like raw materials required, manufacturing process, project costs and snapshot of other project financials.
The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decision.

The report contains all the data which will help an entrepreneur find answers to questions like:

Why I should invest in this project?
What will drive the growth of the product?
What are the costs involved?
What will be the market potential?

The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product. The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.

Our Approach:

Our research reports broadly cover Indian markets, present analysis, outlook and forecast.
The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players.
We use reliable sources of information and databases. And information from such sources is processed by us and included in the report.

Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction

Project Introduction
Project Objective and Strategy
Concise History of the Product
Properties
BIS (Bureau of Indian Standards) Provision & Specification
Uses & Applications

Market Study and Assessment

Current Indian Market Scenario
Present Market Demand and Supply
Estimated Future Market Demand and Forecast
Statistics of Import & Export
Names & Addresses of Existing Units (Present Players)
Market Opportunity

Raw Material

List of Raw Materials
Properties of Raw Materials
Prescribed Quality of Raw Materials
List of Suppliers and Manufacturers

Personnel (Manpower) Requirements

Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

Plant and Machinery

List of Plant & Machinery
Miscellaneous Items
Appliances & Equipments
Laboratory Equipments & Accessories
Electrification
Electric Load & Water
Maintenance Cost
Sources of Plant & Machinery (Suppliers and Manufacturers)

Manufacturing Process and Formulations

Detailed Process of Manufacture with Formulation
Packaging Required
Process Flow Sheet Diagram

Infrastructure and Utilities

Project Location
Requirement of Land Area
Rates of the Land
Built Up Area
Construction Schedule
Plant Layout and Requirement of Utilities

Project at a Glance

Assumptions for Profitability workings	Plant Economics
Production Schedule
Land & Building Factory Land & Building Site Development Expenses
Plant & Machinery Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies
Working Capital Requirement Per Month Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
Overheads Required Per Month And Per Annum Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses
Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR