Manufacturing of Unsaturated Polymer Resins

SMB ENVIRONMENTAL PROJECTS PVT LTD
ABSOLUTE TECHNOLOGIES
TECHNOLOGIES
Technical
Know-how - A Gateway to Prosperity
A PROJECT REPORT
ON
UNSATURATED POLYESTER RESIN

AT DAMAN
Prepared By
S.A. AZAD ( Alias Burhaan )
B.Sc. Tech ( Chem Tech ) , DNIIT, DGM, DFM,
CEO : SMB Environmental Projects Pvt Ltd

Ex. Sr. Manager HPCL ( Project Planning)
For
Mr M. Meera Sahib,
QLIFFE TECHNOLOGY SERVICES PVT.LTD, B602, MANIKA APARTMENT,
MAHAKALI CAVES ROAD, ANDHERI EAST, Mumbai - 400093,MH, India
Mobile:-+91-98208 47615, [email protected]
Date : September 28, 2014

REGD OFFICE: 7 RESIDENCY ROAD, OPP ASHOKA RESTAURANT, SADAR, NAGPUR 440 001
Email : [email protected] , Mobile: +919860240852
A PROJECT REPORT
ON
UNSATURATED POLYESTER RESIN

AT DAMAN
S.No.
CONTENTS
Page No.
1.
INTRODUCTION
2.
MARKET POTENTIAL
3.
QUALITY STANDARDS
12
4.
BASIS & ASSUMPTIONS
15
5.
PRODUCTION & TECHNICAL ASPECTS
21
6.
PROJECT FACILITIES
45
7.
COST ESTIMATES
& OPERATTING EXP.
58
8.
Financing Proposals & Incentives
66
9.
CASH FLOW / FINANCIAL ANALYSIS
69
10. THE FACTORY ACT
76
11. INDUSTRIAL ESTABLISHMENT ACT
77
.. Page No 52 is the last page

1.0 INTRODUCTION
1.1 BACKGROUND :
Unsaturated polyester resins are the most commonly used thermoset resins
in the world. More than 2 million tonnes of unsaturated polyester resins are
utilized globally for the manufacture of a wide assortment of products,
including sanitary-ware, pipes, tanks, gratings and high performance
components for the marine and automotive industry. Recently there has
been a global focus on greener processes and technologies. This is where
unsaturated
polyesters
have
the
most
potential
over
their
metallic
counterparts. Production of metals continues to deplete our natural

resources and consumes most of our fossil fuels.
Collectively there is an ever increasing potential for unsaturated polyester
resins. Their low cost, ease of use and weight advantages make them prime
candidates for a wide variety of structural and decorative applications.
Imagine a world where all metal components are replaced with thermoset
composite components manufactured from unsaturated polyester resins
these are the possibilities of pure science.
1.2 CHOICE OF LOCATION:
Daman city is a growing town and a promising union territory. It is

surrounded by a cluster of industries belonging to various sectors like
process, chemicals, engg. and other ancillary industries catering to other
mainstream industries of Maharashtra on one side and the Gujarat on the
other side. The UT Government is focusing on the industrial development of
this region by encouraging all kinds of end use and intermediates, a
majority of which are also exported being near to the Port towns in the
adjacent areas. One such sector is intermediate chemicals which can be
manufactured here for catering to the demand of domestic as well as Export
market.
With a view to exploit this opportunity in this ever growing industrial center,
the promoters of this project, namely Qlife Technology Services Pvt Ltd
have engaged M/s SMB Environmental Projects Pvt Ltd - Absolute
Technologies, a Nagpur / Khamgaon based premier Industrial Consultancy
organization in the Central India, to prepare a detailed Techno- Economical
Feasibility cum Project Report for a modern Unsaturated Polyester Plant
comprising a feed preparation unit, mixer, reactor, and other accessories.
The unit will be located on an industrial plot, owned by the promoter group,
which shall be either taken on long lease or by outright purchase.
Accordingly, a detailed Techno-commercial Project Report is prepared and
presented as a compact planning document to initiate and implement this
time bound project, keeping in view the specific conditions of the location
and the client.
1.3 ADVNATAGES OF SELECTED LOCATION :

The proposed plant would come up on a N / A industrial plot of at least
25000 sq ft plot of land owned / leased by the promoters and located near
Daman city.. The location is carefully selected being close to the source of
abundantly available raw material from the adjacent industrial chemicals
producing centers like Vapi, Ankleshwar & Ahmedabad etc. and well
connected with the
rail / road heads for ease of dispatches of big
consignments of finished UPRs of diffret grades and varieties for domestic

consuming centers as well as for export purposes as the case may be,.
being close to the port of Nhava Sheva, Navi Mumbai,
fair prospects of
exporting the finished goods to the countries having high demand of such
products, as indicated by the present market trends.
1.4 OTHER ADVNATAGES OF SELECTED LOCATION :
The location is in a fully developed region of the UT of Daman, having all
necessary infrastructural facilities like power, water and other incentives in
the form of speedy clearances, subsidies etc. The location is close to the
source of raw material.
Market potential continues.

2.0 MARKET POTENTIAL
2.1 GLOBAL SCENARIO:
Unsaturated polyester resins are the most commonly used thermoset resins
in the world. More than 2 million tonnes of unsaturated polyester resins are
utilized globally for the manufacture of a wide assortment of products,
including sanitary-ware, pipes, tanks, gratings and high performance
components for the marine and automotive industry.
When it comes to weight for cost comparisons, unsaturated polyester resins
are much favoured over their metallic counterparts. With the current fuel
and processing costs, the increasing prices of steel and aluminium are
pushing more fabricators to use unsaturated polyester resin composites
instead. Another major advantage is the increased productivity potential.
While metals involve the use of specific smelters, expensive tooling and
processing requirements, unsaturated polyester resins are far cheaper and
afford the use of low cost tooling. An unsaturated polyester resin can be
moulded at ambient temperature whereas metals need to be heated to well
over 2000C before they are melted and poured into mould cavities.
Although the perception is that metals are generally structurally superior,
there has been much advancement in the development of technologies for
producing higher strength composites made from unsaturated polyesters
resins.
Liquid Resin
Packed in Drums
The global UPR market was $6.5 billion ( Rs. 39000 crores appx. ) in 2012
and is estimated to reach $9.5 billion ( Rs. 57000 crores, appx. on current
exchange rate ) by 2018, growing at a CAGR of 6.0% from 2013 to 2018.
The high demand across the industries such as wind energy and marine will
increase overall UPR consumption. The Orthophthalic and DCPD resins are
expected to be the key revenue generators for global UPR market.
According
to
new
report
published
by
Transparency
Market
Research "Unsaturated Polyester Resin Market By Product Segment (DCPD,

Orthopthalic, Isopthalic and Others) For Pipes and Tanks, Building and
Construction, Electrical, Marine, Transport, Artificial Stones and Other Enduser Segments: Global Industry Analysis, Size, Share, Growth, Trends And
Forecast, 2013 - 2019", the global demand for unsaturated polyester resin
was valued at USD 6.54 billion in 2012 and is expected to reach USD 10.48
billion in 2019, growing at a CAGR of 7.5% between 2013 and 2019. I
Orthopthalic were the most widely used unsaturated polyester resins and
accounted for around 35% of the global demand in 2012. Owing to its
versatility and resistance characteristics, the demand for unsaturated
polyester resin is expected to be substantially higher over the forecast
period. According to another market research report, Polyester resin market
is a mature industry, mainly in its well-known established products,
applications and process aspects. Through the unsaturated resin market
size, reduced applications, discusses aspects of regional analysis, this report
on the 2009 state of unsaturated polyester market analysis and forecasts of
unsaturated polyester 2015 development trend of the future. 2008-2009
recession
influenced
the
development
of
global
industry,
including
unsaturated polyester market. Unsaturated polyester resin market in 2009

has decreased, therefore, in unsaturated polyester resins business of major
corporate sales also fell by about 20% -30%. The next five years, is
expected to unsaturated polyester resin of global consumption will maintain
a sustained increasing trend, compound annual growth rate of about 6.3%.
2015, the estimated value of unsaturated polyester resin market will reach
5.8 billion U.S. dollars.
In the near future, as new applications and demand is growing, unsaturated

polyester resin is expected there will be a trend. Because wind energy and
construction markets in the past few years there has been a rapid growth
trend is expected that this momentum will be better for unsaturated
polyester resin industry growth.
Unsaturated polyester resins will continue to maintain a good growth trend,
unsaturated polyester resin manufacturers to create more tax revenue for
the State. The information provided in this analysis has a high value on
insightful. This article analyzes the new growth opportunities that can help
you in unsaturated polyester resin market, certain to win.
UPR has now become one of the largest varieties of thermosetting resin.
Asia, North America and Europe are the world's main UPR production and
consumption regions. As of 2009, the global UPR capacity reportedly
reached 6 million t/a.
Yet another research by a Chinese source has given the following market
information :
In 2002, the gross capacity of unsaturated polyester resin in the world was
approximately above 2,600,000 tons (excluding China), and the production
was mainly concentrated in the US, Western Europe and Japan. Unsaturated
polyester resin production plants in North America are quite centralized, and
there are approximately 3-4 main production plants, and the total
productivity is approximately 1,154,000 tons/year; including America
991,000 tons/year, Canada approximately 91,000 tons/year, and Mexico
approximately
72,000
tons/year.
The
unsaturated
polyester
resin
manufacturers in Western Europe are relatively scattered, the factories are

many, and the relatively big companies are BASF and DSM Corporation,
whose total productivity is 810,000 tons/year. The total productivity in
Japan is 338,000 tons/year, including seven major manufactures.
In recent several years, the US, Western Europe, Japan and other developed
countries have not established new unsaturated polyester resin production
units
in
their
own
countries,
instead
have
performed
only
some
reconstruction and the extension projects, but there were also part of
production units stopping production or having underproduction. However,
the production device ability of unsaturated polyester resin in some
developing countries has grown quickly. In the past's five years, world
unsaturated polyester resin productivity was basically maintained 2.5 - 2.6
million tons/year, and it is estimated that in the future several years,
unsaturated polyester resin production in the world can increase along with
the expansion of its application fields, and estimates show that the
unsaturated polyester resin production will have great growth in the future.
In 2005, unsaturated polyester resin output in the world was approximately
3,200,000 tons. And the consumption quantity in North America, Western
Europe, and Japan was approximately 1,500,000 tons. It's estimated that in
2011 the global unsaturated polyester resin consumption quantity will
10
amount
to
2,800,000
tons,
with
annual
average
rate
of
increase
approximately 5%. The development priority of unsaturated polyester resin

in the US, Western Europe and Japan is mainly resin modification and
expansion, and in the future, the application fields of unsaturated polyester
resin will be getting wider and wider, and it's estimated that in 2012
demand of unsaturated polyester resin in the world will amount to
3,200,000 tons
2.2 INDIAN / ASIA PACIFIC SCENARIO:

Asia Pacific dominated the unsaturated polyester resin market in 2012
followed by North America owing to the growth of building and construction
industry. Asia Pacific is expected to witness the highest growth within the
forecast period on account of increasing usage of building and construction
and tanks and pipes industry. The demand for unsaturated polyester resin
in Asia Pacific is expected to grow at a CAGR of 6.0% between 2013 and
2019.
The unsaturated polyester resin market in India is poised to grow
substantially in the next five years. The market is mainly driven by domestic
consumption basically by government, NGOs, and civic bodies. The Indian
unsaturated polyester resin market witnessed strong growth in the last
couple of years due to robust GDP growth, increased manufacturing activity,
and core sector growth. Application markets such as transportation is
growing rapidly, helping the growth of Indian unsaturated polyester resin
market. According to market forecasts, Indian unsaturated polyester resin
11
market is expected to reach 445 million pounds( Rs. 5500 crores ) by 2018.
Quality Standard continues

3. QUALITY STANDARDS
3.1 Quality Policy & Processes :
The project shall obtain an ISO 9001:2000 certification as well as ISO
14000 for environmental aspects, right from its inception to build a brand
image not only for the domestic but also for international export market.
3.2 Quality Parameters :
Grades Liquid Resin Properties
Cast Resin properties
Reputed
Mfg.
equival
ent.
Orthoph
thalates
Appe
arnac
e
Vis,@
25,
cp
Sp
gr
@
25
Acid
Value,
mgKO
H
Volatil
e
conte
nt,%
UPR
UPR
UPR
UPR
Clear
Clear
Clear
Opaq
500
1700
1000
1200
1.12
1.12
25
25
22
1.17
24
35
25
32
30
Clear
Opaq
Clear
600
1200
350
1.11
15
1.17
18
1.11
Hazy
600
1.11
6100
6300
6420
6440
1.13
Gel
time
@25,
min
Barce
l
Hard
ness
HDT,
deg
C
Water
absor
p, mg
Tesiles
trengt
h,Kg/c
m
Flex,
streng
th,
Kg/cm
15
07
20
15
44
45
45
40
68
62
90
62
22
550
650
450
1000
15
38
32
39
15
15
20
50
45
45
100
100
105
16
37
15
40
100
18
30
30
400
1100
950
900
15
25
15
650
600
700
1100
1100
1200
22
600
1000
Isophth
alates
UPR 6600
UPR 6640
UPR 6670
erphtha
lates
UPR 6700
12
UPR 6770
Hazy
600
1.11
15
36
20
45
83
14
750
1200
3.2 APPLICATIONS:
The resins conforming to above properties can be used for the following
end use applications:
General Purpose laminating resin, GP Boat grade, Buttons, Roof lights with
UV stabilization, Sheet grade, GP pultrusion,GP SMC / DMC, GP fire
retardant, DCPD based resin, Filament winding application, GP gel coat,
Laminating resin, structural application, Different Vinyl esters.
Some of the applications are listed in details here for a better appreciation
of quality aspects.
Putty Resin
This is a medium reactive flexible Orthophthalic Acid based Unsaturated
Polyester Resin. It has a low viscosity, good wetting, sandability properties,
good shelf life, and is fast curing and capable of taking high filler loading. It
is specifically formulated for metal pastes and polyester putty applications
General Purpose Resin
This is a medium reactive Orthophthalic Acid based Unsaturated Polyester
Resin designed for lamination purposes. It has a low viscosity, good wetting,
13
good mechanical properties, and is fast curing. It is suitable for hand lay-up,
RTM, and other molding techniques and can be supplied as a preaccelerated, thixotropic, or low viscosity resin
Medium Reactive Superior Resin
This is a medium reactive superior grade Orthophthalic Acid based
Unsaturated Polyester Resin. It has low viscosity, good wetting, good
mechanical properties, and is fast curing. It is suitable for hand lay-up, RTM,
and other molding applications and can be supplied as a pre-accelerated,
thixotropic, or low viscosity resin.
Low Reactive Superior Resin
is a low reactive superior grade Orthophthalic Acid based Unsaturated
Polyester Resin. It has a very low viscosity, good wetting, high gloss, and
good mechanical properties. It is suitable for marble, mannequins, helmets,
doors, boats, Gelcoats, FRR, etc. and can be supplied as a pre-accelerated,
thixotropic, or low viscosity resin.
Rooflite Resin
This is a medium reactive superior grade Orthophthalic Acid based
Unsaturated Polyester Resin. It has a very low viscosity, excellent wetting,
good weather resistance, and is fast curing. VRP 2151 is suitable for making
translucent rooflite sheets and can be supplied in UV stabilized and preaccelerated versions.
14
BROAD SPECIFICATIONS OF SOME IMPORTANT RESINS:

Properties
Resin 1
Resin 2
Isophthalic / MP Diol based
Orthophthalic / MP Diol
brushable Gelcoat
brushable based Gelcoat
Haze thixotropic liquid
Haze thixotropic liquid
9,000 12,000
9,000 12,000
4.5 6.5
4.5 6.5
<15
<22
Resin 3
Resin 4
PET based GP Resin
PET based Putty Resin
Slight yellow haze
Slight yellow haze
550 600
550 600
Acid value (mg KOH / gm)
<15
<15
Specific gravity at 25C
1.12
1.12
Gel time at 25C (Min) a
15 5
50 10
Type
Appearance
Viscosity at 25C (Cps)
Thixotropic index
Acid value (mg KOH / gm)
Properties
Type
Appearance
Viscosity at 25C (Cps)
NOMENCLATURE & APPLICATIONS:

UNSATURATED POLYESTER RESINS
PRODUCT
DESCRIPTION
CODE
APPLICATION
ORTHOPHTHALATES
OP1001
General Purpose Laminating
Construction,Automotive,Electrical,Sports,
15
Resin
Leisure
OP1004
Cultured Marble
Cultured Marble,Polymer Concrete
OP1010
Fire retardant Resin
Construction,Automotive,Electrical
OP1012
Resin Transfer Moulding
Automotive,Furniture,Sports,Industrial
OP1016
Putty Resin
Polyester Putty
OP1017
Resin for SMC/DMC
Automotive,Electrical
OP1O27
Filament Winding
Construction,Industrial,Electrical
OP1036
Pultrusion
Structural,Industrial,construction,Electrical
TP1004
Tropicalized ,Thixotropic
Laminating Resin
Construction,Automotive
TP1006
Preaccelerated,Tropicalized,
Thixotropic Laminating Resin
Construction,Automotive
ISOPHTHALATES
IP1003
Chemical Resistance,Lloyds
approved
Chemical
resistant equipment,Marine,Construction
IP1004
Resin for SMC/DMC
IP1006
Pultrusion
Structural,Industrial,construction,Electrical
IP1008
SMC Resin.Higher viscosity
IP1017
Fire retardant laminating Resin Construction,Automotive,Electrical
IP1019
Filament Winding
Construction,Industrial,Electrical
IP1029
Chemical Resistance
Chemical resistant
equipment,Marine,Constructiom
TP1005
Tropicalized Thixotropic
Chemical resistant
equipment,Marine,Constructiom
GELCOATS
TP1001
Orthophthalic based gelcoat
Construction,Automotive,Electrical,Sports.
Leisure
TP1002
Isophthalic based gelcoat
Chemical resistant equipment,Marine,
TP1003
ISO NPG gelcoat,Lloyds

Approved
Chemical resistant equipment,Marine,
SPECIALITY RESINS
BP1001
Bisphenol Resin
Corrosion resistant linings,chemical

equipment
VE1001
Epoxy Resin based Vinylester

Resin

equipment
16

equipment
VE2001
Novalac Epoxy vinylester Resin
VE2002
Novalac Epoxy vinylester

Resin(High HDT)
VE3001
Brominated epoxy Resin based Corrosion & Fire resistant linings,chemical

Fire Retardant Vinylester Resin equipment
SATURATED POLYESTER RESINS

PP1018
Solvent (Xylenol / Solvasso150)

Stoving enamel
based polyester Resin
PP1002
Water Dispersible Polyester

Resin
Stoving enamel
FG Size
Plus
Water Dispersible Polyester

Resin
Fiberglass tape lamination
IMPORTANT NOTE:
While total quantity of the UPR to be produced is taken as 7.5 TPD, the
exact product range and its distribution over a time period shall be decided
as per the demand pattern once the project goes on stream.
17
.Basis & Assumptions continues
4.0 BASIS & ASSUMPTIONS

4.1 PROFILE OF PRODUCTION COMPLEX :
The project would be raised on an industrial plot preferably a leased one in
the industrial area in the UT of Daman. The plot size is appx. 25,000 sq. ft.
It is proposed to construct a production shed of appx. 30 m (L) x 15 (W) m
x 8 m (H) which is around 4500 sq. feet, administrative block of 1,000 sq.
feet and a full fledged and a storage and dispatch section of around 10,000
sq. feet area within the boundary of the complex.
A compound wall is
proposed to be constructed to cover the complex and to provide proper

security. The cost of production complex, office building and, road paving for
truck movement and the compound wall will form part of capital
expenditure along with that of Plant and machineries.
4.2 Production facilities :
18
The major operations involved in the manufacture of polyester resin are

esterfication and blending which are carried in their respective kettles.
The most common raw materials used are polypropylene glycol, melic
anhydride and styrene monomer. In addition small quantities of inhibitors
and other additives are required for the process.
The process involved is poly condensation reaction and blending the
polyester resin with the monomer. Due to the sensitivity of polyester resin
to contamination; in the course of condensation reaction and during
subsequent handling the material of construction must be carefully selected
The details are covered in the Project Facilities chapter.
4.3 WORKING :
The process is basically a batch process, each one lasting approximately one
shift. The plant is expected to work on 2 shifts basis for production and for
300 days per year. Therefore, the required redundancy has been built in the
plant design so that spare equipments are available to ensure continuous
and un-interrupted production even when some of the equipments are
taken off from the service for routine maintenance. However, the 3 rd shift
will also be needed for the related activities like raw material receipts,
dispatches of finished products and also for any maintenance work, that
may be going on in preparation of batch productions
4.4 Finances :
19
The promoters plan to finance 25 % from their own resources through the
equity route, while 75% of the capital cost shall be funded by approaching
the Financial Institutes / Banks on normal commercial terms. As of now,
there is no clarity on the quantum and nature of subsidies available
therefore no effect is assumed for the present.
4.5 Availability of power & water:
The unit is being planned in a regular, fully developed industrial area of the
Daman union territory, it is expected that the power and water at cost shall
be made available as normal infrastructure facilities.
4.6 BASIS OF COST & PRICING:
Cost of raw materials & price of finished UPR resin:
Material Balance :
( 3 mols of UPR + 2 mols of water ) needs 3 mols of propylene glycol
and 3 mols of maelic anhydride. This stoichiometry gives the following
estimates of revenues and cost.
5000 TPD of UPR is equal to 5376 Kgs of raw material and about 1 % of
catalyst ( toluene + p toluene sulfonic acid
20
Costs of R/M : Propylene glycol : Rs. 110 / Kg, maleic anhydride : Rs.
100 per Kg. Catalyst material appx. Rs. 100 / Kg.
Requirement of PG : 5376 x 0.44 = 2365 Kgs
Requirement of MA : 5376 x 0.56 = 3011 Kgs
Requirement of catalyst @2 %,
= 100 Kgs
The polymer is dissolved in the styrene monomer for forming a cross

linking final polymer product, which is in the ratio of 2 : 1.
That means this 5 TPD UPR, after mixing with styrene monomer will
form a final Unsaturated Polyester resin of 7.5 TPD product available for
sales.
Production of UPR @ 100 % cap utilization
7.5 TPD
Revenues from sales of finished UPR

@ Rs. 140 / Kg = Rs. 1050,000
Cost of Raw materials :
1.
2.
3.
4.
Propylene Glycol 2365 Kgs x Rs. 110 / Kg

= Rs. 260150
Maleic Anhydride 3011 Kgs x Rs. 100 / Kg
= Rs. 301100
Catalyst 100 Kgs x Rs. 100 / Kgs
=
Rs. 10,000
Styrene monomer solution as base of this resin =
2500 x 110 / Kg
=
Rs. 275000
Total exp on Raw material / Day
Rs. 846,250
Above estimates will form the basis of profitability & cash flow.
4.7 Implementation schedule :
1.
Registration & other Formalities
2 month
21
2.
Purchase of land
3.
Preparation of Detailed Engg & Design: 2 month
4.
Arrangement of Finances
5.
Building construction
3 months
6.
Arrangement of Power
2 month
7.
Procurement of Plant & Machinery:
3 month
8.
Erection of Plant & Machinery
2 month
9.
Appointment of staff & labor
1 month
10.
Trial production &

:
1 month
Trouble - shooting
1 month
2 month
4.7.1 CONCURRENT AND SEQUENTIAL ACTIVITIES :

Out of above listed activities, in order to minimize the overall implementation time, the
activities can be divided and pursued into following concurrent and sequential project
phases.
Phases
Phase I
Group of concurrent activities

Registration, land Acquisition, Detailed Engg.
And Arrangement of Finance
Total Time
2 months
Phase II Compound wall, Building Construction, Procurement Of Plants

& Machineries, Arranging of Water & Power
Next 3
Supplies
months
22
Phase
Erection, Commissioning, Trial production, Recruitment of
Next 3
III
Manpower, Commercial Production & Marketing
months
Thus, the total time required for the commencement of commercial production:
of cotton bales and other related products will be around 8 months.
.. Production & Technical continues..
5.0 PRODUCTION & TECHNICAL ASPECTS
5.1 CHEMISTRY:
The unsaturated polyester resins are formed from the reaction of a diol (a
molecule containing several hydroxyl groups) and an unsaturated diprotic
acid. The resulting polyester chains are dissolved in a reactive solvent. The
chains crosslink to form a hard, strong resin which is used in making the
hulls of boats and in the production of "synthetic marble" and various other
applications.
In general, polyester resins result from the condensation reaction between a
diprotic acid and a polyhydric alcohol, e.g.
23
HOC--- X---- C----OH

!!
!!
O
OC
+ HO ---Y---OH = --X-----C-----O----Y----O----C---X----C---OY
!!
!!
!!
O
O
O
n H2O
Any change in type or proportion of reactants results in a change in

properties of the polymeric product so an infinite number of polyesters is
theoretically possible.
Possible
variations
in
formulations:
Unsaturated
polyesters
are
produced from a glycol (1) and maleic anhydride (2), which is faster
reacting than maleic acid and produces less water. Some specialized resins
that need high chemical resistance use fumaric acid3 instead of maleic
anhydride because it copolymerizes better.
Pthalic Acid Monomer

(1)
Maleic Acid Monomer
A glycol is a diprotic alcohol. Propylene glycol (propane-1,2-diol)
is commonly used.
24
( 2 ) An acid anhydride (such as maleic anhydride) is what you would get if

you reacted two moles of a particular carboxylic acid together and lost one
mole of water, i.e.
2R---- C----OH ---------------------------
R-----C------O------C------R
!!
!!
!!
+ H 2O
Maleic acid is a diprotic carboxylic acid (i.e. it has two carboxylic acid
groups) so in this case the two carboxylic acid groups of the same acid
molecule react together to give the five membered ring of maleic anhydide
as follows:
O
!!
O
!!
HO----C----HC---CH--C---OH
will yield to a 5 member ring compound maleic anhydride plus water
molecule.
Other acids are used in conjuction with the unsaturated maleic type to
prevent the resin from being too reactive. Ortho-phthalic anhydride is the
most common and is used in "general purpose" formulations (used in boat
building, some cast sanitary-ware etc.). Isophthalic acid is used where
better chemical resistance is required (e.g. in oil storage tanks). Adipic acid
is
used
where
flexibility
is
required
(e.g.
in
resins
for
autopatch
compounds). Halogenated acids (e.g. tetrabromophthalic anhydride) can be

used to produce reduced flammability in mouldings.
25
5.2 The manufacturing process:

26
5.2.1 Raw Materials:

1. Maleicanhydride
is
white
crystalline
solid,
m.p.
52C-53C
Maleicanhydride is preferred to maleicacid since it is more reactive

and give rise to less water on esterifation.
2. Propylene glycol is the preferred diol because it forms polyester which
are compatible with styrene and which show little tendency to
crystalliseand readily available at low cost.
3. Small quantity of Xylene or p- toluenesulfonic acid is added as a

catalyst
4. Styrene is the most widely used dissolving solvent - cross-linking
monomer, being preferred because of its compatibility, low viscosity,
ease of use and low price.
5.2.2 Process:
The resin is manufactured in a batch process using 1500 - 5000 L stainless
steel kettles fully equipped for heating, cooling, pressure, vacuum refluxing
and distillation. The mixture is cooked at up to 220 oC for between 10 to 20
hours. Samples of the reaction mixture are taken from time to time and
their acidity and viscosity measured to assess the progress of the reaction.
27
After cooking the polymer is cooled and dissolved into styrene, a

polymerisable solvent (i.e. one that can copolymerise with the polyester).
Heating of highly flammable reactants and solvents poses practical
problems. Hot water or super-heated steam are produced in a room
detached from the kettles and circulated in jackets around the kettles. Thus,
all likelihood of spark or flame ignition in the processing area is eliminated.
Removal of water from the reaction mixture to obtain maximum yields is
accomplished in one of two ways:
Sparging. Nitrogen gas is bubbled through the mixture to increase the
surface area. The water evaporates and is carried out of the mixture and
condensed.
By refluxing with a water absorbing solvent such as toluene4 or xylene5.
.The excess of glycol is to allow for loss during the reaction and to restrict
the molecular weight of the polymer.
The mixture is heated at 150C-220C for 10-20 hours and water is
continuously distilled from the reactor.
Sometimes xyleneis added to the reaction mixture to assist in the removal
of water by azeotropicdistillation and sometimes catalyst such as ptoulenesulphonicacid is added to reduce the reaction time.
28
In order to prevent discoloration, the reaction is carried out in an inert

atmosphere of either carbon dioxide or nitrogen.
Heating is continued until the average molecular weight of the polyester
reaches about 1000-2000.
The polymer is then cooled to about 90C and pumped into a blending tank
containing vinyl monomer to which has been added an inhibitor such as
hydroquinone.
In a general purpose material, the weight of styrene used is about half that
of the polymer.
The blend (which is commonly referred to as polyester resin) is then
allowed to cool to room temperature.
The reaction between hydroxy-compound and anhydride proceeds in two
distinct steps.
In the first step, esterificationof the anhydride occurs to form a free acid
group which is then esterifiedin the second step.
The first step proceeds more rapidly than the second since the anhydride
group is more reactive than the free acid group.Clearly, a dioland an
anhydride may interact through a sequence of reactions of the foregoing
type to yield a linear polyester.
29
By changing the reaction time, polymerization time and some temperature

variations during the process, different types of unsaturated resins ( ortho,
iso and ter phthalate types ) are obtainable, which have different kinds of
application, while there will not be very substantial changes in the quantity
of raw materials.
. Project Facilities continues
6.0 PROJECT FACILITIES

30
This project will have a state of the art manufacturing facility using latest
modern Plant supplemented with fully automatic systems and machines
imported
if
necessary
from
renowned
European
or
Chinese
manufacturers. These machines are latest in technology with automation of

highest degree possible to-day.
6.1 Requirement of land and Building :
It is estimated that a 25000 sq feet land plot will suffice. However,
promoters may wish to keep another 10,000 sq ft as reserve for future
expansion and any employee welfare facilities that may be planned in the
second stage of execution.
It takes into consideration, requirement of
expansion and future diversification as well as areas that may be necessary

to put up the staff accommodation depending on the HRD policy.
It is proposed to construct a production complex of appx. 20 m (L) x 15 (W)
m x 8 m (H) which is around 3000 sq. feet, administrative block of 1,000
sq. feet and a full fledged
and a storage and dispatch section of around
5,000 sq. feet area within the boundary of the complex. A compound wall is
proposed to be constructed to cover the complex and to provide proper
security.
31
Production cum Admin Building
Product Dispatch Section
6.2 PLANT & MACHINERIES :
: 5000 L Reactor Configuration:

1. Iner shell material and plate thikness:304 SS plate. 8 mm
2. Jacket material and plate thicknes: Carbon Steel. 6 mm
32
3. Electric motor power: 10 kw (3 phase) equiped with Gear reducer

4. Rotation Speed: 65 RPM ,Paddle type Agitator
5. Mechanical seal
6. Heating method : Thermal Oil Heating / Steam Heating
7: Inner dish-tubes : 42 8 laps (304 stainless steel)
: 7500 L Dilute Kettle Configuration:
1. Inner shell material and plate thickness:304 stainless steel 10m
2. Jacket material and plate thickness: CS Q235 coated with Anti-rust
Paint, 8 mm
3. Electri motor :2 kw, (3 phase) , equipped with Gear reducer
4. Rotaion Sped: 85 RPM ,Paddle tyoe Agitaor
5. Mechanical Seal
33
:Oil - Water Separator: 500 L (SS 304)

: Horizontal condenser: (Material: SS 304)
: Fractionating Column: in 2 sections with an elbow ( MOC - SS304)
: Buffer tank: 300L Carbon steel Q235 coated with Anti-rust
Paint
: Vacuum pump: 10 kw 1 Set
: Baby Boiler: 200,000 K Calorie (Gas Fired /OilFired / Coal Fired
: Interconnecting Pipelines
Quality Control Laboratory

34
6.2.8. Pollution Control Measures

Appx 500 litres per day of contaminated process water is expected to be
discharged, which may have traces of insoluble resin. Therefore an Oily
Water separator is included for gravity settling and then discharging only
clean water from the process. However, as it will be treated with a
neutralixing agnet, the same may be used for plantation purposes around
the factory area. Therefore no liquid effluent is expected to be discharged.
As there will be a baby boiler for producing steam as heating medium, the
flue gas will be discharged through a wet scrubber to arrest particulate
matter if any and also a chimney of 40 feet height shall be provided to
safely discharge the flue gases up in the atmosphere.
. Cost Estimate & Operating Expenses continues
7.0 COST ESTIMATE & OPERATING EXPENSES

I.
CAPITAL EXPENDITURE :
7.1 Land: 25,000 sq feet industrial plot shall be taken on lease rental basis
@ Rs. 2 Lakhs per month. The expenditure shall be part of the recurring
operating expenses, while one month rent shall be included as a part of
working capital.
35
7.2 Building :
a. cost of production shed
4500 sq ft @ Rs. 1000 = Rs.
45 Lakhs
b. cost of adm. block, 1000 ft2 @ Rs. 2000

=
Rs. 20 Lakhs
c. Dispatch section, 10,000 x 100 =
d. Compound wall
Total building cost
10 Lakhs
Rs. 10 Lakhs
Rs. 85 lakhs (A)
7.3 PLANT & MACHINERY
S.No
Facilities
Quantity
Amount
1
2
3.
4
5
6
7
7
Main Plant & Machines

Laboratory equipments
Pollution Control Equipments
Civil Foundation & Plumbing Works
Fire Fighting Facilities
Electrical Installations, DG set
Forklifts, vehicles, tools, tackles
Pre- Operative exp. including design,
1 set
1 set
1 set
1 job
1 set
1 job
LS
L.S
Rs. Lakhs
70
5
15
10
5
10
15
10
consultancy & securities etc.

Note : all facilities include erection
36
and commissioning cost

Total Plant & Machines
TOTAL PLANT & MACHINES =
Total Capital Expenditure

=
Rs. 140 Lakhs..B
(A)
140
+ (B)
85 + 140
= 225 Lakhs
7.2 WORKING CAPITAL :

7.2.1 Raw Materials :
Cost of R/M per day ( refer basis & assumptions) = Rs. 8.5 Lakhs
Per month ( 25 days )
= 212.5
Cost of Raw Material per year @ 100% cap utilization = 2550 Lakhs
7.2.2
Lease rental for land

Industrial plot leased to the project
@ Rs. 24 Lakhs per annum
Monthly rental
2 Lakhs
7.2.3 Manpower:
DEPARTMENT
No of people required
Production
37
packing
maintenance
Accounts and
Adm dept
Managerial
staff
Total
Manpower
20
Avg wages at Rs.

25000 /month
including bonus and
insurance, Rs. Lakhs
5 Lakhs
other facilities at 40
%
Total labor cost /

month
Cost of Manpower per year
7
=
7 x 12
= 84 Lakhs
POWER: The following table gives the details about the power
Total units(KWH)
consumption per day
Unit cost (cost / KWH)
600
6
TOTAL POWER COST /DAY

In Rs
3600
Packaging 40 drums / day
20,000
Power + Packaging per day
23600
38
Monthly power + pckg
6 Lakhs
7.2.4 Cost of Power & Pckg. per year =
6 x 12 = 72 Lakhs
( Note : A DG set of appx. 35 KVA rating shall be put up to cater to

emergency services in case of power outages )
7.2.5 GENERAL ADM & MAINTENANCE EXPENSES : 1 X 12 = 12 Lakhs
TOTAL WORKING CAPITAL 30 DAYS BASIS :
=
212 + 24 + 7 + 6 +1
Lakhs
7.3 TOTAL PROJECT COST

=
=
250
= FIXED CAPITAL + WORKING CAP

225
250
475 Lakhs SAY Rs. 4.7 crores.
8.0 COST OF PRODUCTION

8.1 FINANCING PATTTERN FOR THE PRESENT VENTURE:
The present venture proposes to have the following financing pattern:
In Rs. Lakhs
S.N
Project
Promoters
Loan
Total
Component
Equity @
Amount
Cost
25%,appx.
@ 75%
Complete, includes
39
working capital
119
356
However, the cash flow worked out as per above pattern, does not take into
account any capital subsidy, if any as the same will be claimed only after
successful completion of the project.
As such the cash flow will improve
further upon getting this subsidy in future.
8.2 COST OF PRODUCTION :

ASSUMPTIONS :
1.
The capacity utilization, increasing from 60,70,80, 90 and 100 % over

the 5 years period. Production to commence after 8 months from the
date of sanction of the project and approval of funds.
2. Land lease rental is fixed for a period of 5 years.
3. The cost of raw materials increasing @ 5 % in the 3rd year and will
remain constant for the next 2 years also.
4. Other expenses, to increase @ 5 % in the 3rd year and will remain
so in the next 2 years.
5. The manpower cost is revised upward by 7% in the 3rd year.
However, capacity utilization factor will not be applicable to
Manpower.
6. Building depreciation taken @ 6 % of the initial cost.
7. Plant & Machine life taken @ 6 years. Depreciation @ 17 % on
straight line basis.
Table : Cost of Production
Head / yr.
Figs in Rs. Lakhs.

2
40
Capacity utilization,
%
a. Raw Materials
b. Power, Pckg. &
other Expenses
c. Manpower
d.Rental
e. Dep-Bldg.@ 5 %
f. Dep P&M @ 16.66 %
( life = 6 yrs)
COST OF
PRODUCTION
( a to f )
60
70
80
90
100
1530
50
1785
59
2142
71
2410
83
2678
88
84
24
84
24
90
24
90
24
90
24
5
24
5
24
5
24
5
24
5
24
1981
2356
2633
2909
1717
Cash Flow & Financial Analysis continues.

9.0 FIVE YEARS CASH FLOW & FINANCIAL ANALYSIS
9.1 CASH FLOW:
Assumptions :
(1)
The sales is related to capacity utilization in production. Full

capacity production will be 7.5 TPD x 300 = 2250 TPA, by the end
of 5th year.
(2)
The no of operating days in a year is taken 300 days.
(3)
The raw materials components and formulations are as given in the

chapter of Basis & Assumptions
41
(4)
Selling price at current prices of resin is in the region of 130 to 150

per Kg. On the conservative side, price is taken as Rs. 140 / Kg. in
the wholesale / export market. The price will increase @ 5% in the
3rd year and will remain constant for the next 2 years.
(5)
Raw materials costs for different components, the formulations

and the cost details are covered in the chapter Basis &
Assumptions . Again the cost will increase @5% in the 3 rd year and
will then remain constant for the nex 2 years.
7. Interest rates for term loan assumed as 14 %

8. Corporate Tax is assumed @ 30 % on the profit after interest.
CASH FLOW TABLE
Figs in Rs. Lakhs
Head / Year
Capacity
1
60
2
70
3
80
4
90
5
100
1890
2205
2646
2977
3308
1890
2205
2646
2977
3308
1981
2356
2633
2909
utilization,
%
Sales
Revenues
Total Sales
Production
cost refer
1717
42
above table
Gr. Profit
before
173
224
290
344
399
406
463
397
286
100
Repayments
Interest on
Nil
115
146
198
100
Depleting
50
57
49
35
12
before tax
Corp. Tax @
123
167
241
309
387
30 %
Profit after
37
50
72
93
116
interest &
86
117
169
216
271
tax
Add back
29
29
29
29
29
115
146
198
245
300
115
146
198
245
445
interest & tax

Loan Balance
Including int
@ 14%
Loan
Loan balance
Profit
depreciation
NET CASH
FLOW
SURPLUS
FUNDS
9.2 FINANCIAL ANALYSIS & CONCLUSIONS :

43
1.
From the above table, it is evident that the project is

economically very attractive, as it is paying back its term loans
amounting to Rs. 356 lakhs by the end of the 4th year along with
the interest.
2. The project is attractive for the promoters as it is returning the
original equity contribution of Rs. 119 lakhs in multiples by
generating a surplus of Rs. 445 Lakhs after meeting all its
commitments.
3. In case the capacity utilization factor improves earlier than
assumed, the cash flow shall be still more attractive and
chances of meeting all the capital and loan liabilities within 3
years are quite bright.
4. The project is excellent with respect to Govt. point of view in

that it is earning a handsome tax revenues of Rs. 368 lakhs in
the form of corporate tax in 5 years and hence contributing to
the GDP growth.
44
5. The project is socially relevant as it aims to develop an under

developed region of Marathwada and takes into consideration a
higher value of the farm produce as its input, and hence
benefits the local farmers, in raising their income level.
Moreover, it is providing direct employment to 20 persons, and
indirect employment to several people in the form of contract
labour, mathadi workers, transport sector and local
businessmen, which will provide support services to this unit,
once it is fully operational.
6. The project is duly equipped with the fly ash arrestor, chemical
and biological treatments to the liquid effluents, which will be
recycled for plantation purposes. Therefore, it is environmentally
friendly and will follow a zero effect philosophy.
. Contd HOW TO SET UP THIS FACTORY
45
10. HOW TO SET UP THIS FACTORY

10.1 IMPORTANT DECISIONS TO BE MADE:
LOCATION OF INDUSTRY INDUSTRIAL PLOT IN DAMAN
PREPARATION OF BUSINESS PLAN & PROJECT REPORT
SOURCING OF TECHNOLOGY, RAW MATERIALS, MACHINERIES
10.2
INFRASTRUCTURE - LAND & BUILDING, WATER AND POWER
LEGAL ASPECTS TO COMPLY

* PROVISIONAL REGISTRATION OF THE UNIT IN THE CONCERNED
STATE / UNION TERRITORY / DISTRIC INDUSTRIES CENTER.
*
APPLY FOR CONSENT TO ESTABLISH FROM THE CONCERNED

REGIONAL OR DISTRICT OFFICE OF THE STATE POLLUTION
CONTROL BOARD.
GETTING THE COMPANY / FIRM REGISTERED WITH REGISTRAR OF

COMPANIES OR FIRMS, APPLY FOR TIN / EXCIZE NUMBERS USING
THE SERVICES OF A QUALIFIED CA.
* SUBMIT THE APPLICATION ALONG WITH THE PROJECT REPORT TO

THE BANKS / FINANCIAL INSTITUTES FOR GETTING THE
REQUIRED LOAN FOR THE PROJECT.
46
* PERMISSIONS/CLEARENCES REQUIRED FROM ANY OTHER GOVT

DEPARTMENT / MINISTRY.
. Contd 13.0 Factories Act
11.0 THE FACTORIES ACT

11.1 Objectives
- To ensure adequate safety measures and to promote the health and
welfare of the workers employed in factories.
- To prevent haphazard growth of factories through the provisions
related to the approval of plans before the creation of a factory.
11.2 Scope and coverage
- Regulates working condition in factories.
- Basic minimum requirements for ensuring safety, health and welfare
of
workers.
- Applicable to all workers.
- Applicable to all factories using power and employing 10 or more
workers, and if not using power, employing 20 or more workers on any
day of the preceding 12 months.
11.3 Main provisions
- Compulsory approval, licencing and registration of factories.
47
- Health measures.
- Safety measures.
- Welfare measures.
- Working hours.
- Employment of women and young persons.
- Annual leave provision.
- Accident and occupational diseases.
- Dangerous operations.
- Penalties.
- Obligations and rights of employees. when to consult and refer
- On starting a factory.
- Throughout the life of the factory.
. Industrial Establishment Act continues.
12.0 THE INDUSTRIAL ESTABLISHMENT ACT

12.1 Objectives
- To regulate the conditions of recruitment, discharge, disciplinary
action,
holidays, etc. of workers employed in industrial undertakings and
establishments.
12.2 Scope and coverage
- Applicable to industrial establishments wherein 50 or more workmen
are or have been employed in the preceding 12 months.
- Central and state governments can make this Act applicable to
48
establishments employing less than 50 persons, as in the case of UP

and West Bengal.
- In Assam it is applicable to concerns employing 18 or more workers.
12.3 Main provisions
- Submission of draft standing orders.
- Certifications of standing orders.
- Modification of standing orders.
- Registration of standing orders.
- Amendments of the Act.
- Penalties.
- Obligations and rights of employers.
- Obligations and rights of employees.
When to consult and refer
- At the time of expansion of the concern, when the number of
workmen may increase, coming within the provision of the Act.
- When revising standing orders.
________________End of Project Report ________________
49

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SMB ENVIRONMENTAL PROJECTS PVT LTD

Know-how - A Gateway to Prosperity

UNSATURATED POLYESTER RESIN

CEO : SMB Environmental Projects Pvt Ltd

Date : September 28, 2014

Email : [email protected] , Mobile: +919860240852

SMB ENVIRONMENTAL PROJECTS PVT LTD

UNSATURATED POLYESTER RESIN

BASIS & ASSUMPTIONS

PRODUCTION & TECHNICAL ASPECTS

Financing Proposals & Incentives

CASH FLOW / FINANCIAL ANALYSIS

10. THE FACTORY ACT

11. INDUSTRIAL ESTABLISHMENT ACT

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SMB ENVIRONMENTAL PROJECTS PVT LTD

.. Page No 52 is the last page

counterparts. Production of metals continues to deplete our natural

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Daman city is a growing town and a promising union territory. It is

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1.3 ADVNATAGES OF SELECTED LOCATION :

rail / road heads for ease of dispatches of big

consignments of finished UPRs of diffret grades and varieties for domestic

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Market potential continues.

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Research "Unsaturated Polyester Resin Market By Product Segment (DCPD,

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unsaturated polyester market. Unsaturated polyester resin market in 2009

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In the near future, as new applications and demand is growing, unsaturated

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manufacturers in Western Europe are relatively scattered, the factories are

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approximately 5%. The development priority of unsaturated polyester resin

2.2 INDIAN / ASIA PACIFIC SCENARIO:

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Quality Standard continues

Cast Resin properties

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