AN OVERVIEW OF CHLOR-ALKALI INDUSTRY

GLOBAL SCENARIO

In the world scenario of industries,chlor –alkali industries are having great importance.it
is considered as one among mother industries.It is the foundation to all other industries in the
world.The history of the world chemical industries are traced back to a period of 7000 B.C.Large
scale chemical industries were started in the world at the dawn of the industrial revolution.Its
development after the advancement of the organic chemistry is tremendous.

Chlor alkali refers to an industrial process used for producing caustic soda,chlorine,and
other chlorine and sodium based products or derivatives like hydrochloric acid , chlorinated
paraffin,sodium hypochlorite ,bleaching powder,and hydrogen gas .The process involves the
electrolysis of brine solution resulting in the formation of the above mentioned products.The
main products of chlor alkali market are chlorine gas,caustic soda,and soda ash.As of 2012,Asia
consumes the highest volume of the above mentioned chemicals which are nearly half the global
consumption followed by North America and Europe.In addition to this,the increasing demand
in the application industries like organic and inorganic chemicals is expected to grow the
market.Another important factor contributing to this growth is the current high production
capacities for chlor-alkali products.In the world economic scenario,this industry had a strategic
position.Daily usable consumer products like soaps and detergents have become popular due to
the development of this industry.Now chlorine and caustic soda are produced under the
government regulations to ensure the protection of the environment.To achieve low cost of
production ,the companies locate their factories in the developing countries where raw materials
are readily available .Those products required advanced and most sophisticated
technologies.These are produced in industrialized countries lilke USA,China and Canada etc.

In 1970’s,Mercury cell technology was used for producing caustic soda.This process is called
amalgam process.This process had a defect .A lot of energy and power are consumed during this
process.The problem of mercury pollution is inevitable.It was during the same period due to the
Mina Mata disease resulting from the mercury pollution,the government of japan issued a
direction to all caustic soda plants to change over to other process under a time bound
programme .IEMC or Ion Exchange Membrane Cell Technology is now used as a security
measure against the mercury pollution.The technology totally avoids mercury,consumes 30%
less power compared ti the conventional process of mercury cell technology.

The tremendous growth in population increased the demand for consumer goods.The production
of paper ,aluminium ,soaps and detergents etc are on rise.All the industries worked and targeted a
production two fold higher than the previous years.The demand for caustic soda increased.The
Green Peace Movement started their agitations against the environment pollutions.They
demanded a total ban for CFC(Chloro Fluro Carbons)compounds.Chlorine producing plants are
closed down in Europe.North American Plants reduced their total production.The price of caustic
soda rise from $ 50 per ton to $ 300 per ton .Efforts are made to increase global caustic soda
capacity.The international market are opening in the context of demand and supply prevailing
from time to time ;situation of surplus and shortage are cyclical as a result of which international
prices tend to be highly volatile.

Currently the total installed capacity of caustic soda in the world is around 78tons per year,while
demand is only 61m tons per year.Global caustic soda capacity is expected to increase by
around 5.2m tons per year in 2011 with a bulk of it coming on steam in North East
Asia.Inorganic chemicals ,pulp and paper constitute 14% each of global caustic soda end user
market.While organic chemicals accounts for 12% and aluminia accounts for 11% .North East
Asia has become the major exporting region of caustic soda in the world with Australia and Latin
America the major importing destination.

Major Countries Producing Caustic Soda

 USA
 France
 India

INDIAN SCENARIO

The history of chlor - alkali industry can be traced back to the british period. In 1940’s
the manufacturing of caustic soda in India was started. It was made through the process
of electrolysis .After 1960’s the industry enter to its path of growth.Today there are 38
industries manufacturing caustic soda of which 4 are in the organized sector and the rest
 belong to the unorganized sector .The total installed capacity of these units altogether was
about 17,50,000tons / annum .All these industries follow membrane cell technology. It is
more efficient when compared to mercury cell technology. Only 7% of Indian chlor –
alkali units have adopted mercury cell technology It will be faced out by 2012 as per
CREP voluntary commitment. Now India has upgraded its status in this field .The
petrochemical plants like ONGC etc made india one among the exporters of chlor-alkali
products
Strategies
 Focus on core competencies
 Strengthening basic management capabilities
 Adhering to environmental norms

 Collaboration

CHALLENGES FACED BY INDUSTRY IN INDIA

 High level of basic feed stock

 Low level of brand development
 Environmental regulation
 Low level of common infrastructure.
 Dumping/import completion

REGIONAL DISTRIBUTION OF INDIA CHLOR-ALKALI INDUSTRY

Region No of plants capacity Regional share

East 7 0.372 12
West 14 1.661 53
North 4 0.416 13
South 9 0.683 22
Total 34 3.126 100