Internship Report 2023-24

INTRODUCTION

INOX Air Products is the leading manufacturer of Industrial & Medical Gases in India. The
company has 45 operating locations and offers a unique portfolio of gases, equipment and
services through a massive manufacturing capacity in excess of 3150 TPD of liquid gases.
With our extensive network of operations, and a vastly diverse client ecosystem, INOX Air
Products empowers more than 1800 small, medium and large manufacturing organizations
across dozens of sectors, enabling and empowering them on their way to achieve their vision.

In our glorious journey of more than half a century, we have made massive strides on all the
metrics of its business operations, by our sheer reliance on our virtues of customer-centricity,
transparency and delivering value through quality. We take pride in our 1250 strong
workforce, working tirelessly across the country, unleashing the virtues of integrity and
innovativeness, well complemented by their ready-to-serve spirit. In 1963 the Jain Family
established Industrial Oxygen Company Private Limited in Maharashtra. The Company
aimed to augment and capitalize upon the rapid industrialization taking place in the country.
In 1999, the company formed a Joint Venture with Air Products & Chemicals Inc. USA,
giving birth to INOX Air Products. The venture remains till date, one of the longest Indo-
American partnerships in the manufacturing sector.

From large air separation plants to ultra-high purity gases, INOX Air Products offers flexible
supply options to satisfy all your gases needs. With the largest geographic spread & the
largest distribution fleet, INOX Air Products has all what it takes to fuel the growth of core
sectors like manufacturing, infrastructure and healthcare, and fuel India’s $5. In economy
vision with over 6 decades of experience in the industrial & medical gases market in India, it
has been an illustrious journey of transition from selling gases to offering comprehensive
solutions.
INOX Air Products has established leadership position in diverse end-markets that it serves,
including Iron & Steel, Tyre, Glass, Chemicals, Metals, Manufacturing and Electronics.
INOX Air Products can help you determine the most economical supply option for your
particular application. Industrial gases are typically provided in gaseous and liquid form
through a variety of supply systems. Whether it’s on-site supplies or supplies from our
standalone plants, when we supply gases, we do it in a most reliable, safe and trusted manner
INOX Air Products is India’s largest and most diversified merchant gases supplier with
capacity of more than 3150 metric tons per day. The capacities will further increase by 40%
to up to 4400 metric tons per day by 2024. For the last 2 decades, INOX Air Products has
augmented its production capacities at 12 % CAGR. INOX Air Products serves more than 15
end markets with a supply agreement of 3-5 years, indexed to energy inflation, from Stand
Alone Source or Sourced from On-sites.

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Department of Chemical Engineering, DYPIEMR, Pune
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Usage in the Industry: The industrial and medical gases industry serves a very large
number of customers in the whole community. Industrial gases are essential for almost all
manufacturing. Large quantities of oxygen, nitrogen and argon are used in the basic and
infrastructural industries. Shipyards and the automotive industry use acetylene, propane, mixtures of
fuel gases and oxygen for cutting and welding. Liquid nitrogen is vital in recycling plastics, packaging
and scrap tyres. The chemical industry employs all major industrial gases as a raw material or for
inerting. The other smaller market segment consists of cylinder gas and mixtures.

Market Outlook In India, there are presently over 300 small & medium size plants and
approximately 25 large tonnage plants all over the country. These gases are supplied through
pipelines to captive customers in adjacent factories; in cryogenic transport tanks for bulk deliveries
to long distance customers; or filled in cylinders. The present annual turnover of the gas industry,
excluding captive production is about Rs. 3,000 crores ($650 million). With increased
industrialization, the demand pattern of industrial gases is also changing fast. Modern application in
the food processing industry, agro industries, healthcare and technology are growing at a
tremendous pace. This has driven the industry to adopt stringent quality control systems and an
efficient distribution network. Major players in India include BOC India, INOX Air Products Ltd., Jindal
Praxair Oxygen Co. Ltd., Air Liquide India Holding P.Ltd. Aims Industries Ltd etc.

The Indian gas industry is growing at an average rate of 12 per cent per annum during the last couple
of years, with the industrial oxygen growing consistently at 15-17 per cent per annum. The growth of
industrial gas industry can be easily forecast on the basis of projections of the steel and other
metallurgical industry.

Steel demand is seen rising by 10% in the fiscal year to march 2011, helped by higher spending on
infrastructure will continue to drive growth of the gas industry. Natural gas comprises 9 % of India's
primary energy consumption and it will be 14% of energy mix by 2010. Demand for natural gas is
also likely to increase at an average annual growth rate of 7.3%.Metals production and fabrication
will continue to be the largest market for industrial gases, accounting for 31% of total demand in
value terms in coming years. The second largest market will be the chemical processing/petroleum
refining segment. The medical/healthcare market, though smaller in size, will be the fastest growing
and record gains from the expansion of healthcare services in developing nations and rapidly
increasing use of home healthcare respiratory therapies in advanced economics. Hydrogen is gaining
prominence and most companies are striving to develop technologies that can efficiently exploit the
potential of hydrogen. Increased use of natural gas will create an opportunity for higher production
of argon and carbon dioxide. The Industrial gas industry has a very bright future in the coming years.

Global Industrial Gases Market Revenue: According to the Freedonia Group, Inc., a
Cleveland-based industry research firm, world demand for industrial gases is forecast to increase
6.9% annually to $36.8 billion in 2011, with volume exceeding 300-bcm (billion cubic meters).
Asia/pacific is the largest consuming region because of rapid growth in developing industrial
markets, especially those of china and India.

About the Project Proposal: It is setting up a unit to manufacture Liquid Nitrogen, Liquid
Oxygen, Industrial and Medical Oxygen, Industrial and high purity Nitrogen gas, which shall have an

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Department of Chemical Engineering, DYPIEMR, Pune
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aggregate capacity of 1,59,84,000 Cubic Meter (20000 MT) per annum on a land measuring 2 Acres.
The total cost of the project is estimated at Rs. 44.83 Crores and term loan of Rs.29.00 Crores, at a
debt : equity of 1.83 : 1.

Manufacturing Process: The four products viz. a) Compressed Oxygen, b) Liquid Oxygen, c)
Nitrogen and d) Liquid Nitrogen are all produced from air in the same plant. Air, the raw material is
liquefied cryogenically and the separation of the two components liquid oxygen and liquid nitrogen
takes place in a fractional distillation column. Compressed oxygen and nitrogen gases are bottled
into cylinders by compressors / pumps after vaporization of the respective liquid fractions.

The air is first compressed in 3 stages to a pressure of 30kg/cm2. Thereafter the removal of water
vapor and carbon dioxide take place in a battery of molecular sieves. The out-going carbon dioxide
and water vapor free air is further compressed to a pressure of 100 kg/cm2 and cooled substantially
by external refrigeration. This high-pressure air is cooled further in heat exchangers by the outgoing
product gases. Bulk of this cold air is allowed to expand through an expansion engine and the
remaining air is routed through an expansion valve. The downstream air of the expansion engine
attains a pressure of 5 kg/cm2 and a considerably reduced temperature. The other stream of air
going through the expansion valve (JouleThomson valve) is expanded to also attain a pressure of
5kg/cm2) whereby partial liquefaction of air takes place.

Both the streams of air are mixed and introduced as a liquid vapor mixture to the bottom column of
the double rectification column (fractional Distillation Column). Due to mass and heat transfer at
every perforated tray in the column the nitrogen rich liquid vapor accumulate at the top trays and an
oxygen rich liquid-vapor mixture collect at the sump of the column. The liquid nitrogen accumulating
at the upper portion of the bottom column is drawn out as product for storage in Vacuum insulated
cryogenic tanks. For production of nitrogen gas, this liquid nitrogen is pumped from the storage tank
through vaporizers for gasification and bottling into cylinders

The oxygen rich liquid-vapor mixture at the sump of the bottom column is routed to the top column
of the distillation column, which is at a lower pressure of 0.5kg/cm2. In this lowpressure column
further separation of oxygen and nitrogen vapor, take place through a mass and heat transfer
process at the various trays within the column. The separated oxygen vapors again settle at the
bottom of this column and condense to form liquid oxygen due to exchange of heat with the colder
liquid nitrogen formed at the top of the bottom column. This liquid oxygen accumulating at the
bottom portion of the top column is drawn out as product for storage in Vacuum insulated cryogenic
tanks. For the production of compressed oxygen, this liquid oxygen can be vaporized by the heat
exchange between the incoming process air and compressed by oxygen compressors for bottling
into cylinders. Or else the stored liquid oxygen can be pumped through vaporizers for gasification
and bottling into cylinders.

Depending upon requirements, the production modes of the plant can be altered to produce: 1)
liquid nitrogen and compressed oxygen where the in-built vaporizers are used to fill compressed
oxygen and 2) liquid oxygen only, where external vaporizers are used to fill compressed oxygen.

Raw material The raw material for the Oxygen and Nitrogen (gas and liquid) is atmospheric air.
Besides this, the plant will require consumables like lubricants, greases, catalysts and chemicals,
which are available indigenously.

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Department of Chemical Engineering, DYPIEMR, Pune
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Utilities
Water

A cooling tower will be installed with following operating conditions:

Flow Rate / Cont. Consumption 285 M3/hr

Supply / Inlet temperature +27 Deg.C
Temperature Rise 10 Deg. C

Installed Capacity The installed capacity is discussed herein below:

Nitrogen Oxygen (liquid /
Proposed (Liquid / Gases) Gases) (Industrial/ Total
Medical)
Capacity (Cum / Hr) 1340 880 2220
Production Hrs per 20 20 20
Day (3 Shifts)
Working days per 360 360 360
annum
Annual Capacity (Cum) 96,48,000 63,36,000 1,59,84,000
Annual Capacity 10,980 9,050 20,030
(Tonnes)

Capacity utilisation (%)

Financial Year First Year Second Year Third Year Fourth Year
onwards
Percentage 50% 60% 70% 75%

Implementation Schedule It is estimated that the plant will be completed in 18 months

from start of implementation. Step wise implementation schedule of the project

Licensing/ Registration All the major necessary licenses and permits are to be applied. A
list of the same is provided below.

Description Status
Village NOC From Gaon Panchayat
Trade License From Local Authority
Consent to Establish (Pollution NOC) State Pollution Control Board
Factory License Approach to Chief Inspection of Factories, State
Govt
Power Load Approach to Power Distribution Company
Udyog Aadhaar Memorandum (UAM) Website: udyogaadhaar.gov.in

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Department of Chemical Engineering, DYPIEMR, Pune
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POWER REQUIREMENT: The total Electric Power requirement will be about 3.5 MW.
The proposed plant being a continuous process plant, supply of electric power at 33 or 132 KV
through a dedicated feeder is required.

WATER REQUIREMENT: About 2,00,000 liters/day of water will be required for

operation of the plant, which is proposed to be met from own bore-well. The ground water is to
treated in a water treatment plant and is to be re-circulated through a Cooling Tower.

MANPOWER REQUIREMENT: It is estimated that number of persons to be

employed in this project is 50 considering 3 shift operations. The break-up of manpower will be as
follows

(a) Managerial ----- 5

(b) Clerical ----- 5

(c) Skilled ----- 15

(d) Un-Skilled ----- 25

Total 50

Cost of the project:

Description Rs in Crores
Land & Site Development 0.83
Civil Cost 2.15
Equipment & Electrification 34.61
Other Fixed Assets 3.35
Contingencies @ 3% 1.20
Preliminary & Pre-op Expenses 2.13
Margin for WC 0.56
Total 44.83

Land & Site Development: It is proposed to set up the unit in a plot of land. A cost has
been considered for land development, approach road, gate, boundary fencing, etc. The cost details
of land and site development is as given below.

Sl.No. Particulars Amount

1 Construction of Approach/ 36,45,946

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Department of Chemical Engineering, DYPIEMR, Pune
 Internship Report 2023-24

Internal Road
2 Land Developments 46,13,158
Total 82,59,104

Cost breakup of civil work: A factory shed of 4000 sqm. is proposed to be built for the
Air Liquefaction / Separation plant. An amount of Rs. 215,18,879 has been kept towards cost of
construction of linths and super structures, machine foundations and office buildings.

Sl.no. Particulars Total

1 Building/ Shed 181,01,737
2 Cooling Water Tower of 7,20,000
capacity 30KL
3 Machine found. for 12,50,000
Compressor Motor, MSB,
Turb-Booster
4 Foundation of Cold Box of 5,58,157
dia.3.5m & Ht.25m
5 Foundation of Storage Tank 8,88,985
6 Grand Total 215,18,879

Plant & Machineries: The plant & machinery cost has been estimated based on the
quotations and estimates received by the Company. The total cost comes to Rs. 28.52 crores, a
breakup of the plant and machinery is given below

Description Basic Tax & others Total

Recycle 1,430.25 462.57 1,892.82
Compressor, PHE &
Liquefier
Exchanger, Cold
Box Assembly,
Upper & Lower
Column, Turbine &
Booster Assembly
Main Air 469.88 82.48 552.36
Compressors, Air
Filter, Warm end
skid, PP Vessel,
DCA, N2/Water
Tower, Drain
Vaporiser, Control
System, PLC &
HMI
Storage Tank: 77 KL 208.00 59.72 267.72

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Department of Chemical Engineering, DYPIEMR, Pune
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Capacity (4 Nos)
Overhead Crane NA NA 15.00
Inter Connecting NA NA 8.00
Pipe line Flange nut-
bolt, gasket, drain
pipe for complete
plant
Product Pipe Line (2 NA NA 6.00
Sets)
Cryogenics Liquid NA NA 32.00
transfer pump (4
Nos)
Cylinder filling NA NA 15.00
pump with vaporiser
manifold etc.
Insulation NA NA 5.00
Cylinder testing NA NA 7.75
station
Installation & NA NA 50.00
Erection
Total 958.83

Electrification: An amount of Rs. 6.10 Crores is estimated towards construction of dedicated

feeder from supply end to receiving end, erection of terminal equipment at sending end and
construction of a 33KV/11KV/0.415KV substation within the factory premises at the receiving end.
The total cost under this head is estimated at Rs.6.10 Crores as under:

Sl. Description Total

No
A Sub-Station Bay Extension 149.70

B Overhead Line from Substation 115.15

To Substation

C 132 kv / 11 kv Substation in 257.75

Plant
Premises
D Internal Electrification 86.75

Grand Total (A + B + C + D) 609.55

Water System: An amount of Rs.100 lakhs has been considered for making arrangement
of deep tube well, installation of pump, motor, softener and filtration unit, cooling tower, etc.

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Department of Chemical Engineering, DYPIEMR, Pune
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Sl. Description Qty Rate Amt. Rs in Lakhs

No

1 Water
Installation

a) Bore Well 2 40.5 9.00

with pump
b) Small Water 4 0.25 1.00
Pump
Monoblock
C) Water Treatment 1 15.00 15.00
Plant

d) Main Water 2 3.00 6.00

Pump with
Motors

e) Cooling Tower 1 15.00 15.00

f) Water Pipe LS 5.00

Line
g) Valves, Gasket, LS 2.00
Nut-bolts

h) Installation, etc. 15.00

Total 68.00

Other Fixed Assets:

An amount of Rs.235lakhs has been considered on this account including computers, printers,
UPS, software, etc.
Sl. Description Qty Rate Amt. Rs
No in Lakhs
A Laboratory 5.00
. Equipment

B. Fire fitting 8.00

Equipment
C. Work-shop 4.50
Equipment
D. Computers & 1.50
printers

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Department of Chemical Engineering, DYPIEMR, Pune
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F. Building 5.00
lightening
arrestor
G. Transport 4 58.77 235.08
Tankers*

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Department of Chemical Engineering, DYPIEMR, Pune