Indian Chemical Industry Ebook
Indian Chemical Industry Ebook
AND NEEDS
Dee H. Barker' and C. R. Mitra
I. hnmary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
11.Development to 1800 . . . . . . . . . . . . . . . . . . . . . . . . . 137
111. Development from 1800 to 1947 . . . . . . . . . . . . . . . . . . . . 142
I v. Structure of the Chemical Industry . . . . . . . . . . . .. . . . . . . 147
V. Development since Independence . . . ... .. . . . . . . . . . . . 154
A. Heavy Chemicals . . . . . . . . . . . . . . . . . . . . . . . . 157
B. Organic Chemicals . . . . . . . . . . . . . . . . . . . . . . . 166
C. Soaps and Detergents . . . . . . . . . . . . . . . . . . . . . . 168
D. Pesticides . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
E. P l a st i c s . . . . . . . . . . . . . . . . . . . .... . . . . . . I70
F. Ironand Steel . . . . . . . . . . . . . . . . . . . . . . . .. . 172
G. Nonferrous Metals . . . . . . . . . . .. . . . . . . . ... . 175
H. Pharmaceutical Industry . . . . . . . . . . . . . . . . . . . . . 180
VI. Awards for Progress . . . . . . . . . . . . .. . .. . . . . . . . . 184
VII. Professional Societies and Education . . . . . . . . . . . . . . . . . . I87
VIII. Needs of the Chemical Industry . . . . . . . . . . . . . . . . . '. . . 189
References . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 195
tension of theory into new fields, or from the discovery of new ideas, but
from adaptation to the conditions, materials, and methods available in a
developing country. Innovation consists of changing capital-intensive
practice to labor-intensive practice, of finding a path through the network
of regulations, of training workers, engineers, and individuals who have
had little association with technology in everyday life, and of adaptation.
Few people outside India are aware of the progress being made in that
country and in the rapid advance of technology, education, and attain-
ment of self-sufficiency. It is this progress and attainment that will be
described in this report.
1. Summary
several different ages or periods. The first of these is the pre-Vedic age
which includes all time prior to 1500 BC, an age of which our knowledge
depends almost exclusively on archeological findings. The pre-Vedic era
was followed by the Vedic, from 1500 to 600 BC. During this period
Aryans entered from the north and eventually settled over most of the
northern part of India, bringing with them their culture, technology, and
science where they mixed with the prevailing culture.
The Vedic period was followed by the classic period extending from 600
BC to A D 1200. During this period, the country was continually overrun by
outsiders whose cultures were assimilated into the Indian pattern. The
classic period was followed by the medieval, running from approximately
1200 A D to the end of the eighteenth century by which time the British
began to have a major influence in India. The nineteenth century saw
many changes take place in India, as in the rest of the world, in regard to
the development of sciences and their use for the aid of humanity. The
early twentieth century is classified as the preindependence period, and
the time since 1947 as the postindependence period.
The rise and fall of Indian industry in general and the chemical industry
in particular have been caused by many competing factors. India’s loca-
tion and climate have made it a veritable storehouse of raw materials-
both natural and agricultural-valuable for the development of humanity.
The people were peace-loving and not warlike. For this reason, envious
neighbors moved in and conquered and exploited the resources and the
people. These influences brought new ideas, new sciences, and a new
technology which were assimilated and improved upon by the local in-
habitants. Because India lived so long under foreign rule, there was little
freedom to choose the direction of expansion, growth, and development.
Under these conditions, the technological progress made in ancient India
is remarkable.
Humans have used chemical technology since the beginning of re-
corded history. The first evidences of the use of chemistry as a practical
and purposeful art are found in the use of clay which was fashioned into
useful articles and hardened by fire. The development and improvement
of the potter, from the standpoint of both artistic skill and use, led the
chemical technologist to develop processes involving prolonged heating,
fusion, evaporation, and often the treatment of minerals (B3).
The preservation and maintenance of health has also been a subject of
concern to humanity since early times. Archeological evidence from
about 4000 BC shows that in city planning the inhabitants were well aware
of the problems of health and sanitation and therefore were probably also
aware of the treatment necessary to cure certain diseases. Written records
from later times show they were well informed as to the operations used in
THE INDIAN CHEMICAL INDUSTRY 139
ancient times. The earliest metal used was copper. There is also evidence
of the use of bronze, lead, silver, and gold, although some of these metal
objects may have been manufactured outside India and brought in by
traders and conquerors. Most of the earlier finds are copper or bronze
implements, tools, and weapons of warfare. The refining of copper was so
carried out that almost pure copper could be obtained, as analysis of some
copper ingots shows. Melting was carried out near the mines in relatively
small furnaces. There are many places in India today where slag deposits
can be seen, but no remains of a furnace. In the early nineteenth century
copper smelting furnaces were described which were evidently much like
the earlier furnaces. These consisted of a small vertical cylinder about 15
in. in diameter and 3 ft tall, operated with two leather bellows which
supplied the blast air.
Copper and its alloys continued to be important commercial products
throughout all of India’s earlier history. Today the ancient skills are being
reactivated, and the production of copper is becoming an important indus-
try. During the classic age metal workers were sufficiently skillful and
technically educated to construct a copper image of Buddha 80 ft high and
temple bells 100 ft high. They were well versed in casting methods, includ-
ing the lost wax casting process. By the Mogul period, techniques had
developed to such an extent that a brass cannon over 14 ft long and
weighing 53 tons could be cast.
Iron was apparently unknown in the earliest of the Indian cultures.
However, by the Vedic age, it had been introduced or developed in India,
and there is evidence of slag piles and furnaces. The iron objects found
encompass the entire range of tools, weapons, and utensils and extend
throughout India. Following 800 BC, Indian iron and steel objects were
recognized and praised for their quality throughout the Western world.
When Alexander reached India, one of the gifts to him was 100 talents of
steel, a prized commodity. The Indians were also adept in using steel in
cutlery and for armor.
The production of iron and steel in India progressed rapidly, and during
the classic age some of the largest castings in the world were made. An
outstanding example is an iron pillar located near New Delhi, which is
over 24 ft high and weighs over 6 tons. By chance or by design this pillar
was made of nonrusting iron. It is a marvel to behold, standing after
centuries with no sign of rust and covered uniformly with a blackish
coating except near the base where it has become bright and shiny after
being touched by the hands of countless visitors. Iron was used for con-
struction purposes, as shown in the temple at Konarak in Orissa. Over 239
iron beams were used in its construction, some as long as 35 ft and 1 ft sq,
which in most cases have rusted. Another pillar located at Dhar was
THE INDIAN CHEMICAL INDUSTRY 141
probably over 43 ft long. In most cases the remains of blast furnaces show
them to have been very small, and it is difficult to understand how the
large pieces were cast.
Evidence indicates that the ancient people of India from as early as 4000
BC were well acquainted with the production of building materials such as
lime and plaster. By using crude equipment they fashioned the materials
they needed, some of which have lasted until the present day. Present-day
methods used in India probably resemble those used in ancient times. In
the production of bricks, it is still not uncommon to find that sun-dried
bricks are heaped or stacked in piles alternating with coal and arranged in
the form of a beehive oven for firing.
The production of pigments in ancient times was also well known and is
evident in the remains of paintings in various ruins throughout India. In
later times the development and exportation of dyes and pigments was an
important segment of the industry, particularly in regard to the native
indigo.
Another example of the development of Indian chemical technology lies
in the production of pharmaceuticals, cosmetics, and perfumes. Early
chemical endeavors in India, as in the rest of the world, revolved around
the purposes of seeking an elixir for life and changing base metals into
gold. However, many developments in medicine werC also made. Many of
the preparations in India depended on mercury, and it is small wonder that
these compounds did not kill more people than they cured. The prepara-
tion of pharmaceutical compounds primarily depended on the collection of
plants and herbs. These were used either individually or in elaborate
compounds. Many of them are still used today; investigation of the plants
used in medicine is being made, with the result that many new drugs and
preparations are being found.
The use of pottery led to the development of a large amount of special-
purpose laboratory equipment for the preparation of cosmetics, medi-
cines, metals, and so on. Drawings show the existence of equipment for
evaporation, sublimation, prolonged heating, steeping, and distillation, all
made from pottery vessels of various sizes and shapes. Sometimes the
equipment was fired from below and sometimes from above. In all cases a
high degree of skill in chemical and laboratory preparation was indicated.
By the eleventh century A D , the art of making paper was well developed
in India. Indian artisans were highly skilled, and their paper was in great
demand throughout the world. Although much of the paper was made of
rags, a great deal of effort went into using many types of plants, some of
which are still grown in India but are not now used in paper manufacture.
Perhaps with the present shortage of paper some of these techniques
should be revived.
142 DEE H . BARKER AND C. R. MITRA
Although the British occupied parts of India during the eighteenth cen-
tury, it was not until the nineteenth century that their influence spread to
such an extent that it had a marked effect on the industrialization of the
country. As will be shown, several attempts were made in specific indus-
tries to establish chemical processing, but without success. Except for one
or two products, the chemical industry did not flourish until World War I
which created a necessity for developing certain chemical industries in
India. The period of British rule in India was much like that of other ages
during which the people of the country were exploited. (In fairness to the
British, however, it is recognized that British rule was a major factor in
welding India into a united nation.) India was considered to be primarily a
source of raw materials, agriculturally produced (jute, raw cotton, raw
silk, indigo, and raw drugs such as opium), and in some cases minerals. In
the eighteenth century the Indian people became highly skilled in their
ability to spin thread and weave textiles, and India exported a consider-
able quantity of finished goods, particularly cotton and silk textiles. The
manufacture of textiles was “the most widespread industry of the coun-
try. The tropical climate made this article [cotton] suitable as a garment of
the vast majority of the people. On the Coast of Coromandel and in the
Province of Bengal, when at some distance from a high road or principal
town, it was difficult to find a village in which every man, woman or child
was not employed in making a piece of cloth.” (C2)
T H E INDIAN CHEMICAL INDUSTRY 143
producing steel, with pig iron production reaching about 1.6 million tons in
1939 and about 500,000 tons being exported to Japan. Some early investi-
gations indicated that shipping iron ore to England for processing would
be uneconomical because of the low iron content (Wl). However, this was
later shown to be a mistake in sampling rather than in the quality of the
ore. Like the British earlier, the Japanese soon found it better to import
the ore and export iron and steel; hence today Japan is a major importer of
Indian iron ore.
Sugarcane is native to India, and the process of extracting sugar from
the cane originated early in Indian history. Early methods consisted of
crushing the cane in stone or wooden mortars and then processing the
juice by boiling. Gradually the crushing process was developed to include
the use of stone or iron rollers to express the juice. Boiling was still
carried out in open pans, the product (gur) needing very little subsequent
refining.
The sugar industry flourished in India up until about the time of Napo-
leon (MI). At that time the development of sugar beets in Europe inter-
fered with the growth of cane sugar manufacturing in India. Sugarcane
plants were exported from India to the West Indies, where the climate and
the labor supply made it possible to supply sugar at a cheaper rate to
England than from India. In addition, the British Empire imposed tax
duties that favored the West lndian merchants and utilized slave labor in
the West Indies. In 1903, however, attempts were made in India to start a
sugar factory, and in 1920 the government formed a sugar committee. By
1929, it was recognized that a tariff reduction by England would be re-
quired to help the Indian industry grow.
Sugar was available in India during this period in approximately seven
different grades from cane juice through refined sugar. The processes
employed including crushing, filtering, boiling, clarification, and subse-
quent refining steps. The finest white sugar was made by boiling, clarify-
ing, removing the scum, and draining molasses from the crystals. Further
clarification was carried out in a long, conical basket lined with fine cloth
and suspended so as to drain freely. Water was dripped over the top
through wet waterweeds. The many methods of refining sugar depended
on local materials, and each village or area had its own experts.
When steel became available wooden crusher rollers were replaced by
steel ones. Production went up, but the industry was hampered by the
inefficiency of juice extraction. This was improved in later years by the
use of larger central mills which could extract a larger fraction of the juice,
but the industry remained in a depressed state until after independence.
Today India is one of the largest sugar-producing nations in the world,
although the bulk of the product is used at home. Since a large part of the
T H E INDIAN CHEMICAL INDUSTRY 145
Prime
M i n i st e r
Cabinet Cabinet
Advisory - Member Member
Petrol eum Agriculture Other
Chemical
I Members
Director
General
FlFl Fl
Public Sector Private Sector
t
14 Development
Counci 1 s
Genera 1
Manager
Scale
General General
Ma nage r Manager
P r o v i s iona 1 r e g i s t r a t i o n
Preparation o f feasi- a f t e r s c r u t i n y & approval
Product s e l e c t i o n
b i 1it y r e p o r t c o v e r i n g by t h e D i s t r i c t - I n d u s t r i es
on b a s i s o f raw
f i n a n c i a l / t e c h n i c a l and Officw(DI0)
m a t e r i a l , marketing,
l a b o r aspects
-
Loan A p p l i c a t i o n f i l e
w i t h RFC/Banks
( w i t h a l l documents)
Plant M/C Director o f Industries I)-
Erection for Industrial
Quota
150 DEE H. BARKER A N D C. R. MITRA
should have gone into construction of a licensed capacity have been di-
verted to the black market. That is, materials that should have been used
in building and operating a plant have been sold on the black market rather
than used in the manner intended. This points out that there is no ade-
quate check on the use of licenses, a matter that is beginning to receive
attention in government circles.
In 1958, the National Productivity Council was established, and five
regional productivity directors were named. The production capacity and
growth of the chemical industry are also controlled to a large extent by
financing. Through the Indistrial Finance Corporation Act of 1957, the
Industrial Credit and Finance Corporation was set up to help private
investors, particularly small-scale investors, in various industries such as
paper, chemical, pharmaceutical, sugar, metal ore, lime, cement, and
glass manufacture. In 1970, the banks of India were nationalized with a
view to making more money available to small investors.
There has never been a great incentive for Indian industrialists to ex-
pend funds for the research and development necessary to maintain a lead
or to 'expand the chemical industries. All processes developed by any
industry have to be licensed, and there is no protecti.onfor a manufacturer
who develops a new method. These licensing policies have made it more
advantageous to hire foreign technology and then to use the equipment as
long as it can be used, without regard to replacement or improvement of
the processes. These policies are to be reviewed during the next 5-yr plan.
The bulk of industrial research within India is controlled through gov-
ernment funds, and a separate organization has been developed for the
pursuit of research and development. Figure 3 is an organization chart of
scientific and technical research in India as it applies to the chemical
industry, showing interrelationships among the various organizations
doing research. Most research institutions such as the Council of Scien-
tific and Industrial Research (CSIR) are autonomous bodies. The organi-
zation of the CSIR is shown in Fig. 4 together with the names of some of
the research laboratories. Similar organizationsexist in the various states;
a schematic of one is shown for Andhra Pradesh in Fig. 5 . In practice,
there exists a wide separation between research and development and
actual factory production. There is a great need for research and devel-
opment to be more closely tied to industry and to provide assistance in
solving the recurrent problems faced by production managers. An ex-
perimental scheme being carried out in India, called the practice school,
will be described in a later section.
Most research is carried out either in educational research institutes or
in national research laboratories, which are structured and operated much
like graduate research facilities at American universities. The
tanding Grou
Central
o f Ministers
n Science an Cabinet
Planning Cen t r a 1
State
Government
Government
r-----
I Comni ssion Ministries/
I
I
I t
FIG.3. Organization chart of scientific and technological research in India. List A: Alembic Chemical Works Company, Ltd.,
Baroda; Alkali and Chemicals Corporation of India, Ltd., Calcutta; Amar Dye-Chemical Ltd., Mahim, Bombay; Associated Cement
Companies, Ltd., Thana, Bombay; ATIC Industries Ltd., Atul (Gujarat state); Bengal Chemical and Pharmaceuticals Works, Ltd.,
Calcutta; Bombay Chemical Pvt., Ltd., Bombay; Calcutta Chemicals Company, Ltd., Calcutta; plus 5Oothers. List B: BirlaResearch
Institute for Applied Sciences, Nagda; Drugs Research Laboratory, Indian Drugs Research Association, Poona; Engineering and
Mineral Industries Research Laboratory, Bangalore; Shri Ram Institute for Industrial Research, Delhi.
152 D E E H . BARKER A N D C. R. MITRA
Council o f S c i e n t i f i c
& I n d u s t r i a l Research
Chairman: Prime Ministe
Governing Body
President
D i r e c t o r General
Research
Committees
Finance Sub-Committee
Coordination
Counci 1s
rn Head Q u a r t e r s
Executive Committees o f
National Laboratories
I n s t it utes/Centres/
Museums
D i r e c t o r of
Industrial
Research I n s t i -
t u t e s & Centres
& U n i t s i n Scienc
t
Engi n e e r i ng
FIG.5. Organization chart for scientific and technical research in the government of Andhra Pradesh.
154 D E E H. BARKER A N D C. R. MITRA
Foreign exchange was in short supply, and obtaining import licenses was
very difficult. Originally, the manufacturer thought he lacked the skill to
redesign, but faced with the fact that he had to make a gearbox, a new
design was successfully carried out. Considerable progress is now being
made in developing the plastics industry and specialty metals so that in
the future this type of material shortage will be less of a problem in the
chemical industry.
The location of the various chemical industries in India is shown in Fig.
6. As shown by this map, chemical industries have been concentrated in a
few particular areas, which does not correspond to the widespread dis-
tribution of industry desired by the government. Although planners have
assumed it desirable to locate industry in a way that will help utilize
surplus agricultural labor, other factors have been more important and
have influenced the location of plants. Industry tends to expand in heavily
populated urban areas, especially adjacent to port facilities and along
established rail lines. Even the location of raw materials has played a
small part in siting a manufacturing unit. Planners have tried to locate
plants in accordance with social needs and not from the standpoint of
optimizing the economics involving water, materials, market, labor sup-
ply, and so on. For example, an attempt was made to locate a steel plant
based only on a large population and the availability of a seaport (Vis-
hakhapalanam). All raw materials would have had to come overland by
rail. The location of this plant has still not been decided.
A vital factor in siting chemical industries, perhaps the determining
factor, is the availability of suitable water for processing and cooling
needs. There are several major waterways in India such as the Ganges,
Indus (and its five main tributaries), Brahmaputra, Narmade, Mahanadi,
Godavari, Kushna, and Kaveri rivers. Two of these, the Indus and the
Brahmaputra, flow through Pakistan and Bangladesh. The control of these
waterways and the building of dams and canals are being disputed by the
various countries involved, with a consequent delay in effective utiliza-
tion. Other river systems flow through two or more states. Just as in the
western United States, the distribution and usage of these waters is highly
contested. The result is limited usage of the water for power, irrigation, or
industrial production. It is estimated that only 25% of the hydroelectric
potential is utilized. Large canal systems are slowly being developed,
especially in the northwest desert areas.
Most of India’s water supply depends on the monsoons, which occur in
the summer months between July and September and greatly affect indus-
try as well as agriculture. The waterways are seasonal and erratic. The
primary streams such as the Ganges flow over broad, flat plains with
relatively little fall between the mountains and the outlet at the ocean. The
flow of the Ganges in the central portion reaches a volume of 1 million sec
ft at flood crest. At Varanasi flood crests of 36 ft have been recorded.
These have been marked with a white painted line on the steeples of
riverside temples. The Ganges enters the plains at Rishekesh, having
fallen 12,800 ft. From this point, the 1200-mi path to the sea lies over a
gently falling plain from an elevation of about 1000 ft. The average fall is
about 0.8 ft/mi (9.5 cm/km). Since the Ganges sometimes is very high and
meanders, it can greatly change its channel over the flat plain country.
Because of the small fall, it is difficult to make storage facilities to store
the water during the monsoon period, the time when water is really avail-
able. This has impeded development of the chemical process industries
along the Ganges. Near the mouth of the river the flow is much more
stable, and it is easier to ensure a supply of water for a chemical plant. In
certain cases it has been possible to develop large underground infiltration
galleries to ensure a water supply. The eventual development of flood
control systems and dams should be a great aid in the development and
location of chemical process industries.
T H E INDIAN CHEMICAL INDUSTRY 157
I 195 1- 1955
I1 1956-1960
111 1961-1965
Annual plans 1966-1968
IV 1969- 1973
V 1974- 1978
VI (in planning) 1978- 1993
A. HEAVYCHEMICALS
1. Sulfuric Acid
The production of H2S04shown in Table I1 has risen from about 107,000
tons in 1950 to about 1.5 million tons in 1977. This rate of growth exceeds
the rate of growth in developed countries. The utilization factor for the
158 D E E H. BARKER A N D C. R. MITRA
TABLE I
THIRTY
YEARS OF CHEMICALPROGRESS-INTRODUCTION
OF NEWPROCESSES A N D PRODUCTS
installed capacity is one of the highest of any industry within India. Be-
cause HzS04is used in phosphate fertilizer, rayon staple fiber, organic
dyestuffs, explosives, pickling of steel, petroleum refining, and the pro-
duction of other acids, the increase in its production has brought about
rapid growth in other industries.
The first contact HzS04plant went into production in 1948. Out of 49
plants in 1951, 30 utilized the chamber process. With the introduction of
ceiling prices on all sales of HzS04in excess of 1 ton in January 1956, the
chamber plants were gradually replaced by contact plants of larger capac-
ity. By 1%8-1%9 all the units were contact plants, with a total capacity of
1.121 million tons/year. To reduce the dependence on imported sulfur or
internal sulfur sources, the Fertilizer Corporation of India (FCI) has de-
veloped techniques in which the use of HzS04is greatly reduced. These
processes include: (1) the use of electrolytic instead of wet processes for
the manufacture of elemental phosphorus and &PO,, (2) the manufacture
of and phosphate fertilizers by using HCl, (3) the manufacture of
phosphate fertilizer using HN03.
T H E INDIAN CHEMICAL INDUSTRY 159
TABLE I1
SULFURIC
ACIDPRODUCTION
Capacity Production
Year (lo00 metric tons) (lo00 metric tons) Utilization (%)
Estimated.
sulfur imported chiefly from the United States. Several plants have been
or are being built to obtain SO2 from the indigenous sulfide ore deposits
chiefly in the vicinity of the nonferrous metallurgical industries. A 400-
ton/day plant based on pyrites from Amjhore in Bihar was established
near the Sindri fertilizer factory (see Fig. 6). The Cominco-Binani zinc
smelter at Alwaye, the Udaipur smelter of Hindustan Zinc, and the Indian
Copper Corporation smelter at Ghatsila are other examples. The flash
smelter of the Khetri copper plant in Rajasthan will have a H2S04 plant to
utilize the SO2 from the flash smelter. When all these plants go into pro-
duction by 1977, they will provide an annual H2S04production of about
250,000 tons.
There has been some effort to recover elemental sulfur from high-sulfur
petroleum crudes. The Madras refinery has a capacity of 20,000 tons of
sulfur per year. As a resource not yet fully utilized, Amjhore in Bihar has
iron pyrite deposits estimated at 400 million tons. Development of these
deposits could make India entirely independent of imported sulfur. The
ore beds are in relatively narrow seams, so that the overall quality of the
ore is somewhat low. The technology needs to be developed to utilize this
low-grade ore, and the NCST (S4) lists this project as one of the primary
research needs for H2S04production. Location of plants utilizing the acid
should be considered for location near the source of the sulfur. Amjhore is
an area where there is also iron ore, coal, and bauxite, providing the
opportunity for constructing a well-integrated industrial complex.
2. Fertilizer
Fertilizer continues to be a critical need for the progress of India as a
nation. The acreage under treatment with fertilizer has been increasing at
about 1.4%per year. The application level in kilograms per hectare remains
low, as does the per capita use. For the world, the application rate is 47.4
kg/ha and the per capita rate is 18.3 kg (F2, Sl). The range is 13-749
kg/ha. The corresponding figures for India are 13.2 kg/ha and 4 kg per
capita. This indicates the great need for fertilizer in India if it is to meet its
food production targets. The production levels and percent of capacity
since 1947 are shown in Table 111. The rate of increase in production over
the period since independence has varied from 12 to 13% per year against
a target of about 23%. The percent utilization of installed capacity, indi-
cated in Table 111, is relatively poor even though the need for fertilizer has
not been met. The underutilization of capacity in recent years is caused by
a lack of adequate power, by labor problems, and by plant obsolescence.
Before 1951 the only indigenous fertilizer produced was (N&),SO4 made
mainly by coal carbonization at an annual rate of about 46,000 tons.
In 195 1, the Sindri fertilizer plant went into production with a capacity of
T H E INDIAN CHEMICAL INDUSTRY 16 1
TABLE 111
FERTILIZER (P A N D N)
PRODUCTION"
public and private projects have been started and are in different stages of
completion. At present there are 70 fertilizer plants of all sizes in India
operating at about 60% capacity. There are 18 new or enlarged plants
under implementation with a total capacity of 1.88 million tons. This will
bring the total installed capacity to 8.22 million tons.
There was a decline in the demand for fertilizer because of the great
increase in cost caused by the higher cost of oil. This demand, however, is
again increasing. There are three large plants (with a total capacity of 0.8
million tons) under construction, which will each use about 1 million tons
of coal a year. Other coal-based units are planned to make use of the
plentiful supply of coal.
A plant for NH&l (along with Na&O,) utilizing the modified Solvay
process was developed by the private sector in Varanasi in Utter Pradesh.
N&Cl was not effective for the soils present in this area. Recent tests
have shown that N b C 1 is an ideal fertilizer for the rice crop, and it is now
being used by rice farmers in Bengal. Therefore, the production rate of the
factory in Varanasi was doubled in 1976, and an additional plant was built
in Maharastra the same year. At the present time four more plants are
under construction. Although production is small, this represents a use of
local materials, coke and salt,.to help meet the needs of India.
It was planned that this large program for fertilizer production would
reduce the need for imports substantially. Actually, in 1971-1972, the
total production of indigenous nitrogen fertilizers was about 1 million tons
and the demand had risen by 1 million tons, so that it was still necessary to
import large quantities. In 1975-1976, it was necessary to import 1.54
million tons as against the production of 2.75 million tons (a total demand
of 4.29 million tons). This deficit was brought about largely by the “green
revolution” which resulted in improved strains of grain requiring a larger
fertilizer input. The worldwide fertilizer demand has increased, which
makes it more difficult for India to import it, resulting in an overall de-
crease in grain production.
A study committee has determined for the next few years, through
1979, the amounts of nitrogen and phosphate fertilizers that will be re-
quired by Indian farmers. Table IV shows the estimated production and
the deficit in terms of fixed nitrogen and of P205. By 1979, it is expected
that the total demand for nitrogen fertilizer will exceed 6 million tons and
the demand for phosphate fertilizer 2 million tons. This will leave a deficit
of about 3 million tons to be imported by the beginning of 1979. In recogni-
tion of this, a crash program was instituted to boost fertilizer production
to 8 million tons by the end of 1979. The progressive design and construc-
tion technology available in India is now adequate to handle all the man-
ufacture of fertilizer plants within India.
THE INDIAN CHEMICAL INDUSTRY 163
TABLE IV
ESTIMATED
PRODUCTION A N D DEFICIT OF FERTILIZER
COMFQNENTS
1
7iththe technology available in India, it is possible to undert ke the
construction of additional fertilizer factory projects in oil-rich developing
countries in Asia and Africa. Plans are currently underway to manufac-
ture fertilizer in these countries and then import it into India, rather than
importing crude oil and then making fertilizer. (In India, only a small
fraction of the imported crude is used for transportation, the bulk being
used for fertilizer and petrochemicals.)
3. Chlor-Alkali Industry
Soda ash manufacture is another fast-growing heavy-chemical industry.
The actual production for India and the percent utilization are shown in
Table V. Again, the underutilization of capacity is caused primarily by
labor problems and by the energy shortage. (Development of the coal
reserves within India would be of great help in this connection.) Until
1951, only a plant at Dhrangadhra and another at Mithapur were in pro-
duction, both using the Solvay process and having a combined annual
output of 47,000 tons of soda ash. By 1956, their production had reached
about 90,000 tons through improvement and modernization. A plant at
Porbandar with a capacity of 200 tons/day was commissioned in 1969 and
has since increased its capacity. Maharashtra in western India provides an
ideal location in regard to availability of raw materials, that is, limestone
and salt. However, locating all the plants in Maharashtra was not consid-
ered desirable because of the difficulty in distributing products to the
eastern and southern regions.
After 1960, licenses were issued for soda ash plants in noncoastal re-
gions. This introduced pollution problems from the release of by-product
CaCl, into the river systems. The plant in Varanasi that went into produc-
164 DEE H. BARKER A N D C. R. MITRA
TABLE V
SODAASH PRODUCTION
Capacity Production
Year (lo00metric tons) (lo00 metric tons) Utilization (%)
1951 55 48 87
1956 91 86 95
1961 91 176 193
1966 363 349 96
1961 435 42 1 97
1970 470 446 94
1971 470 477 101
I972 500 486 97
I973 508 470 93
1974 508 5 10 100
1977" 704 530 75
Estimated.
TABLE VI
PRODUCTION SODA
OF CAUSTIC
Capacity Production
Year (lo00 metric tons) (lo00 metric tons) Utilization (%)
1951 27 14 53.2
1952 34 17 49.0
1953 38 23 60.3
1954 41 29 70.4
1955 44 34 77.2
1956 56 39 70.0
1957 45 42 93.8
1958 66 57 86.7
1959 98 69 70.7
1960 17 78 81.2
1961 124 119 96.3
1962 124 126 101.4
1963 187 152 81.1
1964 203 184 90.5
1965 268 214 80.0
1966 323 230 71.3
1 967 377 25 1 66.6
1968 366 3 18 86.9
1969 367 347 94.7
I970 367 373 101.7
1971 372 374 100.5
1972 428 397 92.8
1973 439 404 92.2
1977" 704 530 75.0
Estimated.
creased to 530,000 tons. Nearly all states in India now have caustic soda-
chlorine plants. Complete caustic soda plants using mercury cells are now
designed and produced entirely within India. All parts are manufactured
indigenously, and plants are being designed and constructed for other
countries.
b. Chlorine. Chlorine is produced (see Table VII), mainly as a by-
product of the electrolytic manufacture of caustic soda. At the present
time, the liquid chlorine produced is not completely utilized, so that the
utilization is lower than indicated. Auxiliary industries using chlorine as
an input have not been fully developed, and much of the chlorine pro-
duced is transformed into CaC1, and released into the river systems,
sometimes by way of large holding ponds which are discharged during the
monsoons when the river flow is high.
166 DEE H. BARKER A N D C. R. MITRA
TABLE VII
PRODUCTION
OF LIQUID
CHLORINE
Capacity Production
Year (1000 tons) (lo00 tons) Utilization (%)
195 1 13 5 40
1956 21 15 72
1961 33 33 101
1966 136 62 46
1969 222 129 59
1970 293 147 63
1971 23 1 162 76
1972 23 1 I47 64
1973 261 122 46
1974 267 142 53
cal, and plastics industries were imported, involving over $19 million of
foreign exchange.
The need for a strong organic and fine chemical industry in India was
recognized; therefore, several governmental committees were established
to promote such an industry. Concurrently, several private bodies inves-
tigated the profitability of this industry and instituted several production
projects. European manufacturing organizations were instrumental in col-
laborating with government and private-sector plants to begin the man-
ufacture of organic chemicals. The times these started are shown in Table
I. Thus, a beginning was made in the field of organic chemistry in the late
1950s and early 1960s. Plants based on coal tar products, CaC,, alcohol,
and naphtha were brought into production.
The annual growth rate of many of these industries has been between 15
and 20% per year. Table VIII compares the installed capacity for a few
chemicals in 1963 with those for 1973 and estimated for 1978-1979 (S4).
The production of organic chemicals doubled between 1973 and 1978.
Even with this increase, the need remains to import many of these chemi-
cals. The political priority of other sectors of the industry make more
rapid growth impossible.
As a result of the recommendation of the Petrochemical Advisory
Committee, several petrochemical complexes were planned, each with a
naphtha throughput on the order of 200,000 tons/yr. The first of these
complexes, set up by National Organic Chemicals in Bombay, went into
production in 1 %7. This complex mainly produces polyethylene oxide
(20,000 tons), butanol, butadiene, and benzene. Another complex at Koy-
ali near Baroda (1974) produces aromatics and has a capacity of 24,000
tons of DMT, 21,000 tons ofo-xylene, and 25,000 tons of mixed xylene. A
TABLE VIII
INSTALLED CAPACITY ESTIMATED REQUIREMENTS
C. SOAPSA N D DETERGENTS
Soap making is one of the country's oldest industries and originated as
early as 1879. The industry grew rapidly during and after World War 11.
The total production of soap in 1948 was estimated to be 180,000 tons.
Soap and detergent manufacturing has increased markedly since indepen-
dence, as shown in Tables XI and X. Many of the units are small and of
the village type, so that the total installed capacity and percent utilization
are based on the larger units. This part of the chemical industry has an
outstanding record of utilization.
TABLE IX
PRODUCTION
OF SOAP
Capacity Production
Year (lo00 metric tons) (loo0 metric tons) Utilization (%)
1951 192 83 43
1952 193 86 44
1953 I93 82 42
1954 193 88 45
1955 240 99 41
1956 253 110 43
1957 253 111 44
1958 253 I23 48
1959 253 130 51
1960 257 I42 55
1961 257 149 57
1%2 242 164 67
1963 232 164 70
I964 232 158 68
1965 232 169 72
1966 232 181 77
1967 232 176 75
1968 212 189 89
1969 212 224 105
1970 217 23 1 106
1971 217 259 119
1972 217 297 136
1973 218 235 107
1977' 233 290 124
Estimated.
THE INDIAN CHEMICAL INDUSTRY 169
TABLE X
PRODUCTION
O F SYNTHETIC
DETERGENTS
Capacity Production
Year ( lo00 metrictons) (lo00 metric tons) Utilization (%)
1%1 7 8 100
1965 7 8 116
1966 15 8 57
1968 30 18 61
I969 30 22 75
1970 30 31 103
1971 47 53 113
1972 55 61 111
1973 55 60 108
1974 88 84 96
1977" 210 104 50
a Estimated.
With the ban on soap imports in 1957 and continued facilities for import-
ing the raw materials, the industry has recorded phenomenal growth dur-
ing recent years. However, the annual per capita availability of soap
remains low, 1.5 kg as against about 10 kg in developed countries, and
there is considerable room for development.
There is a worldwide tendency to replace conventional soaps (made
from fats and oils derived from animals and plants) with synthetic deter-
gents (syndets) from petroleum sources. In developed countries syndets
have replaced soaps to the extent of 7040%. In India, the situation is
nearly the reverse; the total estimated production of soaps exceeds
700,000 tons, while that of syndets is only 100,000 tons. With the increas-
ing demand for soap, the import of oils and fats tends to increase tre-
mendously, affecting not only the soap industry but also the edible oils
industry which is closely linked to it and also is subject to an ever-
increasing demand (based on the improving standards of living and the
increase in population425 million in 1977).
The combined demand has greatly increased the price of edible oils in
the world's markets. Imports from Western countries must now be paid
for in hard foreign currency and have therefore been curtailed greatly. For
this reason, it is considered desirable to switch from soaps to syndets as
soon as possible and to undertake further large-scale production of syn-
dets. This would make more edible oils available for use in cooking and in
manufacturing hydrogenated oils. If soaps are replaced rapidly by syn-
dets, another problem which is social in nature will develop. As men-
170 DEE H. BARKER A N D C. R. MITRA
D. PESTICIDES
It is estimated that about one-fourth of the crops in India are damaged
by either rodent or insect infestation (11, 12). This means that there is a
great need for pesticides and rodent poisons. The 1977 production was
about 39,000 metric tons at about 78% utilization. Increased production
will help to utilize the excess chlorine production within India.
With emphasis on the need for pesticides in agriculture a BHC plant
was commissioned in the private sector in 1952. A DDT plant in the public
sector was established near Delhi in 1955. Production, which was only 462
tons in 19541955, increased to about 28,000 tons in 1968-1969. Other
related pesticide products the country produces are organic phosphates,
parathion, Al,P, methyl bromide, and ethylene dibromide, along with
about 20 other compounds.
In 1965-1966, the government spent $5 million to import both pesticide
(45%) raw materials and finished products (55%). In 1975-1976, the use of
pesticides was 47,000 metric tons. Thus, the policy of the government in
the matter of importing pesticides has been liberal, corresponding to its
classifying pesticides as “key” and “priority” materials.
The recent growth of petrochemical complexes has improved the avail-
ability of numerous basic raw materials and intermediates for pesticides.
The possibility of reducing the use of scarce metals such as copper, mer-
cury, and nickel in pesticides by using nonmetallic alternatives has been
considered and appears to be feasible.
E. PLASTICS
In India, as in the rest of the world, the use of plastics has increased
rapidly. It is possible to replace many metals and other scarce materials
with plastics. The production of selected plastics is shown in Table XI for
the years since independence, along with the percent of utilization of
capacity. This table does not include the many existing fabrication plants.
THE INDIAN CHEMICAL INDUSTRY 171
TABLE XI
RESINSP L U S
PLASTICS ( M O L D I N G POWDER P L U S
PHENOFORMALDEHYDE MOLDINGPOWDER)
Capacity Production
Year (lo00tons) (lo00tons) Utilization (%)
The plastics industry was in its infancy in the years just following inde-
pendence. A few small-scale industries existed, which mainly converted
molding powders into finished products by compression or injection mold-
ing. The production of plastic goods has rapidly increased to a point
where it furnishes considerable employment in small-scale industrial
units. This will increase rapidly in the future as the capability for produc-
ing plastics increases.
The total investment in the plastics industry rose from $31 million in
1961 to $125 million in 1970 and, in the same period, production rose from
13,000 tons to over 100,000 tons. The manufacture of processing ma-
chinery has also increased rapidly. Bulk production is increasing, but the
manufacture of sophisticated materials and quality products is still not
being carried out. All major raw materials are now produced in the coun-
try with the establishment of petrochemical complexes, so that the indus-
try will play a vital role in future economic development. In spite of the
rapid growth, the annual per capita production in 1971 was only 0.2 kg as
against 81 kg in West Germany, 59 kg in Japan, and 40 kg in the United
States. Thus, there is an ample market in the country and room for
growth. Acrylic plastics, Teflon, silicones, and so on, are yet to be devel-
oped and manufactured. Such specialty plastics are essential for the re-
placement of more critical materials and therefore need to be developed
within India. The processes and know-how for the manufacture of these
types of plastics should be imported from more highly developed coun-
tries, and efforts should then be made to adapt this information to local
economic and labor conditions.
172 DEE H. BARKER A N D C. R. MlTRA
F. IRONA N D STEEL
India’s modern steel industry is about 75 yr old. The first fully success-
ful iron and steel mill was established in 1907 by Jamshedji Tata. There
were as many as 17 earlier unsuccessful attempts to establish Indian iron-
works using Western-type technology. Some of the reasons for failure
were as follows:
(1) In the Western technology adopted, charcoal was used by most
plants, even though coke was widely available. The importance of coke
was not perceived by either the British or the Indians. Had coke been
used, production costs would have been much lower and Indian iron
would have been more competitive.
(2) Most plants produced pig iron for export at a time when world
prices were falling.
(3) Most projects were started with too little capital.
(4) Some plants were established in areas too inaccessible for profit-
able marketing.
( 5 ) Central and provincial governments neglected to support or en-
courage these ventures.
(6) Those who attempted these ventures neither possessed the neces-
sary managerial and technical skills nor did they employ persons who did.
Such mistakes were avoided by the Tata company. Coke, not charcoal,
was used. The mill did not produce pig iron for export, but steel for
internal consumption. The mill was sited at a location accessible to the
important raw materials. The most important factor that contributed to
the success of the Tata ventures was the employment of highly trained
personnel; technical skills were imported, and the advice of foreign ex-
perts was sought. Finally, full cooperation of the government was ob-
tained. The favorable environment created by the Indian government,
including tariff protection and guaranteed purchase of much of TISCO’s
steel for government-owned railways, contributed greatly to the com-
pany’s rapid growth.
TISCO grew rapidly. In 1917, it undertook expansions which resulted in
a fourfold increase in output. By the advent of World War 11, its produc-
tion capacity had doubled again. By 1939, TISCO had become one of the
largest steel mills in the British Empire and also one of the lowest-cost
producers in the world. In 1939, TISCO produced three-fourths of the
steel consumed in India.
About 1918, two more iron mills were established. The Indian Iron and
Steel Company (IISCO), founded by British interests, erected a mill at
Burnpur in West Bengal. Mysore Iron and Steel Works (MISW) was
THE INDIAN CHEMICAL INDUSTRY 173
founded by the maharaja of Mysore, and its mill was erected at Bhad-
ravati. At first, IISCO restricted production to pig iron, primarily for
export to the United Kingdom and Japan. In 1936, it undertook an expan-
sion and acquired the Bengal Iron Company which had previously failed.
The management of IISCO formed the Steel Corporation of Bengal
(SCOB) to undertake the construction of a steel mill adjacent to IISCO’s
blast furnace. SCOB went into production in 1939, and in January 1953
IISCO and SCOB were formally merged.
The MISW plant was originally designed to use charcoal produced by a
wood distillation plant owned by the maharaja. About 1920, synthetic
products were developed which rendered the maharaja’s wood distillation
plant obsolete and caused it to close. However, pig iron continued to be
produced by MISW with charcoal from other sources. By the mid-l930s,
MISW had added facilities for the production of steel, which have never
been economical because of the use of charcoal. In the earlier years, the
losses were absorbed by the Mysore state government, and recently sub-
sidies have been given to this plant by the government. Even though it is
uneconomical, it still affords a source of steel for which scarce foreign
exchange does not have to be expended.
By World War 11, steel imports were replaced with the output from
SCOB. India’s production of steel since 1951 is shown in Table XII.
India was self-sufficient in steel until about 1954. The inability of the
industry to keep pace with the demand for steel after 1954 is attributed to
failure to expand during the immediate postwar period.
In 1945, the government established the Iron and Steel Panel to look
into India’s steel industry and suggest future programs. The panel rec-
ommended, in addition to expansion of the existing mills, that one or two
new mills with a combined capacity of 1 million tons of steel be erected. In
1947, the new government commissioned three non-Indian firms to inves-
tigate the feasibility of this proposal, and all three firms concluded that
two mills, with an initial capacity of 3 million tons each, should be estab-
lished.
The industrial policy resolution of 1948 dictated that the new steel
plants should be the responsibility of the government. Under the industrial
act, private steel companies were allowed to continue operating and were
given licenses to increase their production capacity.
During the first 5-yr plan, inaugurated in 1950, one new steel mill was to
be erected by the government, IMSW was to triple its production, and the
private-sector mills were to increase their combined capacities by nearly
50%. The most significant increase during this period resulted from ex-
pansion programs at IISCO. TISCO modernized its plant, which had de-
teriorated during World War 11, so as to increase production. The MISW
174 DEE H. BARKER A N D C. R. MITRA
TABLE XI1
PRODUCTION,
IMPORTS,
A N D EXPORTS
OF STEEL
SINCE1951
Bokaro project, but the U.S. Congress objected. In early 1%4, the Soviet
Union agreed to help the Bokaro project as well as the expansion of the
one at Bhillai. Construction of the Bokaro plant started in 1966, and the
production of pig iron and ingot steel began in 1973. This plant is still
under construction and has expanded from a capacity of 1.7 million t o 4
million tons/yr.
At the present time, there are six integrated steel plants and two spe-
cialty steel plants with a total installed capacity of 10.6 million tons of
steel and pig iron and 137,000 tons of specialty steel. In 1976 the integrated
production was 8.4 million tons or 79% of capacity. Alloy steel produced
was 103,000 tons at 75% of capacity. India now stands thirteenth in steel
production in the world.
Construction is expected to start in 1979 on a 6-million-ton plant at
Salem in TAMIL Nadu (southern sector). This plant will be entirely of
Indian design. Two other plants are under consideration, one at Vis-
akhapatna in Andhra Pradesh and the other at Vijay Yagar in Karuataka.
It is expected that the investment decisions will be made during the sixth
plan and that construction will be started at the same time.
The domestic demand for finished steel and pig iron by 1973-1974 was
assessed at 7.12 million and 2.0 million tons, respectively. The fourth plan
took into account the need for increasing output to meet this demand and
to ensure additional capacity for meeting future requirements during the
fifth plan.
G. NONFERROUS
METALS
1. Aluminum
Among metals, aluminum is second only to iron in industrial impor-
tance. It is so popular now that aluminum utensils for household purposes
can be found in the average Indian home, having displaced iron and brass.
Today aluminum is widely used in the aircraft, electrical, and building
industries. In the electrical industries, it has almost completely replaced
copper, not only as a bare conductor but also in insulated cables. The
greatest single use of aluminum is in high-voltage electrical house
wiring-about 50%. The production and percent utilization for aluminum
are shown in Table XIII.
The consumption of aluminum in India rose from 12,000 tons in 1951 to
220,000 tons in 1977. The estimated demand in 1984 is to 400,000 metric
tons. The demand is likely to increase dramatically, since the per capita
use in India is 0.4 kg versus 22 kg in the United States and 2.9 kg else-
where in the world.
The first production of aluminum in India was at the Indian Aluminum
176 DEE H . BARKER AND C. R. MITRA
TABLE XI11
PRODUCTION
OF A L U M I N U M
Capacity Production
Year (lo00 metric tons) (lo00 metric tons) Utilization (%)
1951 4 3 96
1956 7 6 87
1961 22 18 83
1966 73 65 89
1%9 117 132 112
1970 I47 161 109
1971 167 178 107
1972 I77 179 101
1973 196 154 179
1974 196 128 66
1977" 275 180 65
Estimated.
2. Copper
Copper has been known in India from prehistoric times. The technology
of its production was also known and is evident from archeological dis-
coveries. In modern times, with increased demands for the metal, there is
an urgent need for increased production. The first major attempt to locate
and work copper mines in modern times was made by the Indian Copper
Corporation which was established in 1924 and started production in 1928.
Major supplies of copper are converted into alloys such as bronze and
brass. The production of copper pipes and tubes, arsenical copper rods,
and so on, was started only during World War I1 and, at the same time,
metal recovery from commercial scrap was initiated. It was only in the
third 5-yr plan that plans for adequate production of copper were formu-
lated. The demand in 1971 was 85,000 metric tons, and the estimated
demand in 1979 is 116,OOO metric tons. Estimated production and scrap
recovery are 45,000and 16,000metric tons. This leaves 57,000metric tons
for import.
Copper represents the largest tonnage of any metal imported. The elec-
trical cable industry came into existence quite early and created a large
demand for copper metal. It is vital for the production of much electrical
generating machinery, even though in power transmissions it has been
supplanted by aluminum. Until recently, the bulk of the imported copper
supply came from Rhodesia. However, with economic sanctions against
Rhodesia by the United Nations and by India, this importation was
stopped. Therefore the principal recent supplier of copper has been the
United States. The large amount of foreign exchange now required for the
purchase of copper has increased the urgency for developing indigenous
resources for the production of copper metal.
The chief deposits of copper ores are found in Singhbhumi (Bihar), and
other sources have been located in Utter Pradesh, Rajasthan, West Be-
ngal, Kashmir, Madkya Pradesh, Mysore, and Andhra Pradesh. The bet-
ter known deposits are found near Jaipur-Alwar in Rajasthan, Kumyun
178 DEE H . BARKER A N D C. R. MITRA
3. Lead
Resources for the production of lead are very small; India contributes
only 0.2% of the estimated world output of lead. India’s principal re-
sources are the Zawar mines and Banjare mines in Rajasthan. Other
sources are in Utter Pradesh, Andhra Pradesh, Bihar, Madhya Pradesh,
Gujarat, and Jammu-Kashmir, but these are not commercially significant.
Recently in South Arcot, Madras, and Mamandur near Madras, lead ores
have been located. The geological survey of India has estimated that this
deposit contains 300,000 tons of mixed metal ores. This ore deposit is
under the control of the government of Madras, and a private company,
Cominco Binani, Ltd., has been licensed to exploit it commercially. A
150,000-ton/yr plant has been proposed by Hindustan Copper, Ltd., to
utilize the Nallakonda (Andhra Pradesh) deposit mentioned above. A fur-
ther project, based on the refining of imported concentrated ores, has been
sanctioned by the government at Vishakpataman.
The demand in 1974 was 47,000 metric tons of which only 2500 metric
tons were produced. Thus, a large part of the lead must be imported. A
single lead smelter exists at the present time, located at Junda in Bihar.
The installed capacity is 3600 metric tons and is being increased to 6000
metric tons. Two additional plants are in the design stage-one at Vizag
and one at Dariba.
Lead is very important for development of the various sectors of India’s
economy. For example, it is necessary for advanced development of the
electrical industry, the paints and pigments industry, and other areas. The
chief need of the industry is for the location and development of additional
ore bodies.
4. Zinc
The main use of zinc is in the production of alloys, particularly brass. It
is also used for galvanizing steel sheets and wires and for producing zinc
THE INDIAN CHEMICAL INDUSTRY 179
oxide for the paint and pigment industries. The demand for galvanized
sheets was estimated at about 700,000 tons at the end of the fourth plan.
The two main zinc smelters are located at Debari, Rajasthan, and at
Alwaye, Kerala. The former is in the public sector, and the latter is in the
private sector. The installed capacity is 38,000 metric tons/yr with a
production of 25,000 metric tons. This leaves an import requirement of
75,000 metric tons. By 1979, the demand should be 150,000 metric tons.
To help meet this demand, the Debari plant is being expanded to 45,000
metric tons from 18,000. Thus, the total installed capacity will be 65,000
metric tons. A new zinc smelter is under construction at Visha Khapatray,
with a capacity of 30,000 metric tons. Completion should be in the early
1980s.
5 . Atomic Minerals
Thorium is among the minerals that are useful in the production of
atomic energy. Thorium deposits have been found in Kerala and in the
Madras area. According to the survey made by the Atomic Energy De-
partment, 30,000 tons of uranium are available in economic quantities in
Saurastra and Kuch, and steps are being taken to develop these deposits.
Another atomic mineral available is beryl ore from which beryllium is
produced. Reserves of this mineral are located mainly in Rajasthan,
Bihar, Andhra Pradesh, and Mysore and are large enough to meet India’s
requirements for beryllium.
Cadmium is used in atomic reactors and in the electrical and steel
industries. With the establishment of zinc smelters from which cadmium
metal can be obtained, imports (80,000 tons/yr in 1970) have been reduced
and are expected to be discontinued.
H. PHARMACEUTICAL INDUSTRY
The growth of the pharmaceutical industry in India, shown in Tables
XIV and XV, has been much more rapid than elsewhere around the world
THE INDIAN CHEMICAL INDUSTRY 181
TABLE XIV
PHARMACEUTICAL SALES
1948 12
1954 65
1966 84
1%8 21 1
1975 65 1
I976 77 1
(13, Rl). Table XIV is based on sales, since the available data are in terms
of dollars rather than weight or other units. Table XV compares 1977 and
1978 production figures for selected drugs. Utilization of capacity is good
and ranges from 60 to 75%. The opportunity for further expansion is also
very great. The percentage of pharmaceuticals in the chemical industry is
above the world average (world average, 11.6%; Indian average, 31.1%).
The remarkable growth in India during the past 25 yr can be attributed
to the strong base of the chemical industry and to favorable governmental
policies. In the 1950s and early 1960s, foreign companies took advantage
TABLE XV
POSITION OF SOME IMPORTANT DRUGS
Antibiotics
Penicillin 230 MMU 780 MMU
Streptomycin sulfate 199 tons 825 tons
Tetracycline 71.4 tons 200 tons
Chloramphenicol 41.05 tons 390 tons
Sulfa drugs 1285 tons 2 195 tons
Antituberculosis drugs 532.54 tons 1380.32 tons
Antimalarials
Quinine 36.23 -
Chloroquin 23.82 150
Hormones
Sex hormones, including
corticosteroid 1747 kg 15.510
Antihistamines
Diphenhydramine 2210 kg 16,000 kg
182 DEE H. BARKER AND C. R. MITRA
Antibiotics, Ltd., Poona. These areas of study have a great potential for
industrial growth; antibiotics, of course, play an important role in the
health program. Other proposed projects relate to newer routes for the
synthesis of important drugs and pharmaceuticals, as well as the cultiva-
tion of aromatic plants for extracting perfumery aromatics and gums used
in pharmaceutical preparations.
The pharmaceutical industry has been instrumental in generating exten-
sive employment opportunities. In 1975, the industry gave direct em-
ployment to 2.04 million persons. Of these, 10% were technical and scien-
tific, 4% executive, and 8% marketing personnel. Employment rose to
about 3.06 million by 1976, an increase of 50% over the previous year.
Employment figures continue to advance steadily with the increase in
turnover.
In addition, the industry provides indirect employment to large num-
bers of people in the distribution trade and associated industries. In the
distribution trade alone, more than 1.06 million persons are employed, and
another 1.02 million work in industries producing containers, cartons,
packaging cases, and so on. On an average, the industry provides indirect
and indirect employment to about 5 million people.
The industry is taking big strides so far as the export of drugs and
formulations is concerned. Fifteen years ago, the export figures were
almost negligible, amounting to about $1.2 million per annum. The indus-
try has recently ventured into the export market; in 1975 it exported
products worth $30 million. Indian industry has created markets mainly in
the developing countries and is vigorously striving to capture bigger and
bigger shares of markets in the developing nations of Asia and Africa.
TABLE XVII
INDIAN MANUFACTURERS
CHEMICAL ASSOCIATION(BOMBAY) AWARDFOR THE MOST
OUTSTANDING
EXAMPLE
OF FORWARDDEVELOPMENT OF TECHNOLOGYIN
INDUSTRIAL
CHEMISTRYI N INDIA
1965 M/s Gwalior Rayon and Silk Significant achievement in establishing commercial
Manufacturing (Wig.) production of rayon-grade pulp for the first time,
Company, Ltd. and from a nontraditional material, bamboo
1966 Tata Chemicals, Ltd.
1967 M/s Synthetics and First synthetic rubber complex company to
Chemicals, Ltd., establish local production facilities to meet its
Bareilly own basic requirements and to supply styrene
and butadiene monomers needed to produce
several grades of synthetic rubber
I975 Bhabba Atomic Research Development of radiation technology using a
Centre, Isotope Group, cobalt-60 source to sterilize prepackaged medical
Bombay products
M/s Fertilizer Corporation Achievement in the implementation of various
of India, Ud. fertilizer projects using varied feedstocks and
employing different sophisticated technologies
1977 D. C. M. Chemical Works, Production of dimensionally stable anodes for
New Delhi diaphragm cells for the electrolytic manufacture
of caustic soda and chlorine
furnish a good indication of the progress being made and of the areas
considered by the ICMA to be important to the chemical industry in India.
Years missing in the tables are those in which no award was made.
The individual needs and research directions for specific industries have
been discussed above. However, there are a number of needs common to
all industries that, if supplied, will aid materially in their future develop-
ment: education, more rational research and development schemes, initia-
tion of more mission-oriented research, and certain organizational
changes.
A foremost need is to change the educational pattern of the country; not
only undergraduate education but also education and research projects
leading to M.S. and Ph.D. degrees. Some of these have been indicated
above. The problems of education in India are not new; in 1933, C. L.
Dhawan wrote (MI):
Indian universities are year-in and year-out turning out thousands upon thousands
of graduates and undergraduates whose market value, these days, has gone down to
practically nothing. These unfortunate young men are swelling the ranks of the unem-
ployed, thus bringing about misery not only to themselves and their near ones, but
also to the whole country. It is, indeed, a painful fact that almost .every Indian
university these days shelter more such youths for whom finding work in this world
has become a problem. The loss to the nation on account of such widespread compul-
sory idleness can be better imagined than described.
learning and on some small amount of laboratory work carried out under
the usual university laboratory conditions. In addition, much of the re-
search taking place in both the national laboratories and the universities is
of a highly theoretical nature not strongly related to actual needs. This is
borne out by the relative poor rate of acceptance by industry of the
projects completed by the national laboratories. Part of industry’s prob-
lem also lies in the high cost of doing its own research and development,
relative to the potential financial return. The large business houses are
mostly managerial or holding companies which have too little perception
of the possible economic improvements of their processes. There are,
however, some outstanding examples of modest-scale industrial laborato-
ries which have been and are being established in India for research on
specific problems (Fig. 3).
An outstanding need, therefore, for the development of self-reliance in
the chemical industry is a better interchange between the scientific labora-
tory and the professional personnel of the industries. This lack of dialogue
between industry and research personnel is magnified by the lack of
awareness on both sides of the need for it.
Considerable study has gone into this problem both at the national and
local levels. For instance, the Education Commission report of 1966 (R2)
strongly emphasized the need for this type of interchange and also for an
increase in vocational training. A later report (Vl) has recommended the
establishment of continuing education programs to be carried out at man-
ufacturing plants. A successful and innovative program is being carried
out at the Birla Institute of Technology and Science (BITS) located at
Pilani on the eastern edge of the Rajasthani Desert. One of the few private
engineering and science schools in India, established in 1964, the institute
has continually recognized the need for coordination between industry
and education. The Massachusetts Institute of Technology chemical en-
gineering practice school, numerous cooperative programs elsewhere in
the United States, and the sandwich programs in England were all studied
to determine how they might be adapted to Indian conditions. As a result,
the practice school concept was adopted and implemented in 1972.
The practice school programs now encompass all areas of engineering
as well as other branches of study. BITS’S chief sponsor is one of the
largest industrialists in India, who has many chemical and industrial
plants under his control. Therefore, the first practice school programs
were established in Birla industries. Now, they are also in operation in
other private industries and in the public sector. In all, there are 20 sta-
tions which service about 200 students every 6 months. These include
banks, newspapers, design companies, manufacturing companies, and na-
tional laboratories. Most of these locations offer accommodations or pay
T H E INDIAN CHEMICAL INDUSTRY 191
B. (Hons)
B i o l o g i c a l Sciences,
M.Sc. (Hons) Chemistry, Mathe-
matics, Physics
I n p u t : Higher Sec.
w i t h Phy, Chem, Maths,
and Adequate E n g l i s h
M.A. (Hons) English, H i n d i
P r a c t i c e School
Often in the past, this was not done either in allocating industrial licenses
or in setting research policy. Lack of follow-up to check how national
needs are actually met by research and development efforts has been one
of the detrimental factors in industrial development.
A major item needing serious consideration in India is the scale of
operation. In general, the larger a chemical plant, the more economical its
capital and its operation costs and the cheaper the resulting output. In
general, a decrease in production costs is gained through a decrease in
labor costs, as well as an increase in volume, and a decrease in costs can
only come about when the plant is operating at almost full capacity. In
India, because of problems involving materials supply, transport of fin-
ished goods, labor, a lack of developed skills, and so on, chemical plants
often operate at less than 60% of capacity, and the necessary conditions
are not met in regard to the size of the plant. Serious consideration should
be given to the availability of supplies and the ability to operate at full
capacity. It is certainly not economical to operate one or two large plants
at 40% capacity when perhaps several smaller plants by judicious location
and scheduling could be operated at 70 or 80% of capacity. With the
prevailing shortage of transportation (railroads, trucks, and so on), power,
and fuel and with the current labor situation, it is doubtful that large-scale
plants will be able to operate at full capacity for the next 10-15 yr (a
substantial fraction of the life of a normal chemical plant). Consideration
should, therefore, be given to building smaller plants closer to the source
of supply or to markets. This would utilize the effect of the scale factor
while taking into account local conditions and transportation problems.
Some means also needs to be found to encourage the proper mainte-
nance, updating, and improvement of existing plant facilities. This per-
haps could be done in the form of tax relief.
The problem of substituting the natural resources of India for imports is
of paramount importance in development of the chemical industry. The
outstanding examples of this are the importation of oil to feed the fertilizer
and petrochemical industries and the importation of sulfur for the man-
ufacture of H2S04. Extensive deposits of iron pyrites containing enough
sulfur to supply India’s needs for 400 yr are located in Bihar. Although
considerable effort has been expanded in developing this resource, India
still imports 60% of its sulfur as elemental sulfur from the sulfur market of
the world. Proper development of the pyrite as a source of sulfur and
H2S04would reduce this dependence and would allow the further expan-
sion of industries requiring H2S04as a feedstock.
Because of the current prices of petroleum in world markets, with no
sign of a reduction in the near future, the development of hydrocarbon
resources in India in the form of coal should be of primary importance and
research funds should be expended in this direction. India’s coal re-
T H E INDIAN CHEMICAL INDUSTRY 195
sources are enormous, and the use of coal as a chemical feedstock would
considerably reduce dependence on foreign oil. At present, about 70% of
India’s oil imports are used in the production of fertilizer. By suitable
design, it would be possible to use the volatile material from the coal,
forming a chemical feedstock, and still have coke left over to furnish
energy for industry, for cooking in homes, and so on. In addition, Indian
coal contains about 30% ash which results in a loss in heating value and an
increase in shipping cost to the place of use. Research in the beneficiation
of coal, using some of the processes being developed in other countries,
might reduce the critical transportation problem as well as increase the
value of coal as a fuel.
Another critical area that could occupy the chemical industry is the
production of methane by biological conversion processes. Large
amounts of organic materials are burned as fuel, including cattle manure,
bagasse from the sugarcane industry, and many other materials. Proper
utilization of these waste materials would help to ease the fuel shortage
and would contribute significantly to the fertilizer capacity of India.
The problem of meeting the food, clothing, shelter, and health needs of
the increasing population of India is critical. For example, an increase of 2
or 3 million tons of food grains is required to cover the poeulation increase
per year. The food crop in 1978 is sufficient to supply food for approxi-
mately 650 million people if there is no loss. Since about 25% of the grain
is lost to insects and vermin, the present production of food is marginal.
The development of insecticides and preservatives is a critical need for
the chemical industry. Governmental policies and expenditure of funds
must reflect this need. The question to be asked regarding all expenditures
is whether they will lead to increased food or clothing production. Devel-
opment of consumer goods industries and the like will not solve these
problems.
The chemical industry is experiencing, and will experience, rapid
growth in the Indian economy. From a consideration of the per capita
consumption, the rapid growth in population and the developing aspira-
tions of the Indian people, the growth and development of the Indian
chemical industry offer exciting possibilities and will continue to be a
challenge during the 1980s.
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