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PRE FEASIBILITY REPORT M/S. AARADHYA INDUSTRIES

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PRE FEASIBILITY REPORT M/S. AARADHYA INDUSTRIES PRE FEASIBILITY REPORT FOR OBTAINING ENVIRONMENTAL CLEARANCE For the Proposed Synthetic Organic Chemicals Manufacturing Unit of M/s. AARADHYA INDUSTRIES Survey No.: 50/paiki ‐2, Village: Dhroliya, Taluka: Tankara, District: Morbi, Gujarat. Contact No.: 9909002268 email: [email protected] [email protected] Prepared By: T. R. ASSOCIATES A‐401, S.G. Business Hub, B/w Sola Bhagwat & Gota Over Bridge Near Umiya Campus, S. G. Highway, Ahmedabad 380060 Contact No.: 98253 71099 email: [email protected] OCTOBER 2018 PFR 1. Introduction M/s. Aaradhya Industries is a partnership firm proposing to set up a Synthetic Organic Chemicals manufacturing unit at Survey No.: 50/paiki ‐2, Village: Dhroliya, Taluka: Tankara, District: Morbi, Gujarat. 2. Project Proponent and their back ground Details of Partner are as given below. Sr. Educational Name of Partner Address Experience No. Qualification 7 Year In Kanani Ratilal “Aadhya”, 1,samrudhi society, b/h. 1 B.A. Electrical Ramjibhai Aalap green city, raiya road, rajkot Rewinding Shop 6 Year Gadara Ashvin Village: Dhrangda, SO. Soyal, Dist. Experience In 2 M.A Kanjibhai Jamnagar, Gujarat. Special Chemical 2 Year Kanani Vivek Village: Hadiyana,Ta. Jodiya, Dist. Experence In 3 B.E. Ramnikbhai Jamnagar, Gujarat‐361011. Special Chemicals 2 Year In Kanani Vishal Sahkar Park Society,Nr. Shiv Pharma And 1 4 B.Pharm Hemrajbhai Temple, Lalpur, Dist. Jamnagar. Year Special Chemicals Desai Dhaval Ganeshpar,S.O. Virvav, Ta. Tankra, 5 B.SC No Experience Virambhai Dist.Morbi . 15 Year Address: 31, Ayodhya Row House, Experience In Dhameliya 6 M.SC. Nr. Swaminarayan Hospital, Dabholi Pharma & Mansukhlal Shivlal road, Surat City, Surat, Gujarat Speciality Chemicals M/s. Aaradhya Industries Page 1 of 14 PFR 3. Brief description of nature of the project: M/s. Aaradhya Industries is proposing to manufacture Synthetic Organic Chemicals (Dye Intermediate Products‐ Ethyl Benzyl Aniline Sulphonic Acid, Para Nitro Toluene Ortho Sulphonic Acid and Resin Products‐ Melamine Formaldehyde Resin, Urea Formaldehyde Resin) at Survey No.: 50/paiki ‐2, Village: Dhroliya, Taluka: Tankara, District: Morbi, Gujarat. The proposed products like Ethyl Benzyl Aniline Sulphonic Acid, Para Nitro Toluene Ortho Sulphonic Acid, Melamine Formaldehyde Resin and Urea Formaldehyde Resin falls under Category 5(f) as stated in Environment Impact Assessment Notification Published on 14th September, 2006. Further, the location of the proposed project is outside the notified industrial estate and it also not fall into small scale unit criteria described in EIA notification 25th June 2014. Hence, the project proponent has to obtain the EC from the Ministry of Environment, Forest & Climate Change, New Delhi. M/s. T. R. Associates (NABET and NABL Accredited EIA consultants) has been appointed to carry out EIA/EMP studies for obtaining Environmental Clearance. The total land area of company is 10,117 m2 out of which 3,400 m2 (33.6 % of total land) area will be used for greenbelt development. The estimated cost of the proposed project is 2.50 Crore. Total budget allocation towards Environmental Management Facilities will be approx. Rs. 22.3 Lakhs. Total 25 persons will be employed including skilled persons, unskilled persons and office staff. DYE INTERMEDIATE PRODUCT:‐ The proposed products Ethyl Benzyl Aniline Sulphonic Acid (EBASA) mainly use in the manufacturing of Food colors i.e. brilliant blue and also use as Dye Intermediates. Para Nitro Toluene Ortho Sulfonic Acid (PNTOSA) intermediate use in dyestuffs, paper Industry, drugs etc. The total installed capacity of various dye intermediates in India is estimated in the range of 2,65,000 MTPA to 2,80,000 MTPA as of FY2017 (FY refers to the period from April 01 to March 31) of which H‐acid and VS accounts for around 40% of the installed capacity and 60% of the domestic dyes intermediate production. The estimated production of dye intermediate during FY2017 is the range of 1,45,000‐1,55,000 MTPA. On supply front, capacity addition of 23,000‐25,000 MTPA is estimated in the dyes segment over FY2018‐FY2019. Dyes intermediate segment has higher entry barriers for environmental clearance due to generation of large quantum of effluent and challenges involved in treating the same. Hence, CARE Ratings doesn’t envisage major capacity addition in the dyes intermediate segment over next three years except for balancing capacity of VS and H‐acid aggregating around 15,000 MTPA for efficient handling of effluent as well as for captive consumption and 4,000‐5,000 MTPA for other intermediates. Significant increase in average sales realization of dyes intermediates and dyes had resulted in healthy profitability for industry players. Profitability though expected to be moderated in FY2018 by 150‐200 bps on account of stabilization of sales prices of dyes and intermediates M/s. Aaradhya Industries Page 2 of 14 PFR (notwithstanding disruption of production in China) and increase in some of the crude linked raw material prices, it shall continue to remain healthy in the medium term. Furthermore, increase in effluent handling cost, prices fluctuations of intermediates and implementation of goods and service tax (GST) are expected to provide competitive edge to the organized integrated players over un‐organized dyes manufacturers lacking backward integration for intermediates. RESIN PRODUCTS:‐ Formaldehyde (37%) is used as raw material for resins, adhesive manufacturing. Resins are used predominantly in the wood products industry as adhesives. Growth of these resins is strongly correlated to construction/remodeling activity (which accounts for over 50% of consumption), and to a lesser degree, to the automotive industry. The proposed products like Resins (Melamine Formaldehyde and Urea Formaldehyde) mainly used to produce Electrical Insulation Board and H.P. Decorative Laminated Sheets. These sheets have good market demand to develop the home and office for furniture. The average production of laminated sheets has crossed approximately 130 million sheets inclusive of all thicknesses but the gap between installed capacity and demand is growing bigger. During FY 2011‐2012 phases that gap narrowed with sudden demand in lower thickness segment but later capacities came in place and the laminated sheets market became a pressure driven market. It is caution for any new comer that if he enters, he should be prepared for "More investments, more efforts and a long wait for margins". The burgeoning market demands of urban and semi‐urban India are estimated at Rs 5,00,000 Crore. The demand‐supply gap has already attracted foreign players to India; and the e‐retailing boom offers immense business opportunities. But a more 15% of India's woodworking industry is organized. Its semi‐skilled carpenters, self‐styled interior decorators and small‐scale local manufacturers will need to be trained and organized to meet future market demands and exploit business opportunities. Indian market is open and big that is why every kind of import is booming. Indian plywood and panel trade has become global place as the consumption of different imported ply panels are on the rise. Unlike before Indians are now welcomed by plywood manufacturer of China. Earlier India was a self‐dependent country for commercial or high quality plywood, but sharp drop in domestic manufacturing output has resulted in material sourcing from countries like Burma, Malaysia, Indonesia, China, Vietnam etc. Now Indian plywood market is somehow curtailed or competed by incoming panel products from China. Be it film face, decorative, laminate or MR plywood everything is now being imported partially or more and is sold. Indian industrialist must understand the fact that its no more a regional shift, it is a global shift. Indian technology should be upgraded and updated as per with international standards. M/s. Aaradhya Industries Page 3 of 14 PFR The working environment in India has changed tremendously. Earlier the trade fairs were hardly particippated by foreign timber, lumber and plywood manufacturing companies where as now it is flooded with global suppliers. There is only market of Resins in local market. Resins are intermediate products for manufacturing of Laminated Sheets. Resins are quite expensive for export. So we have only local market for sale. 4. Project Description (i) Type of project including interlinked and interdependent projects: M/s Aaradhya Industries is proposing to manufacture synthetic organic chemical which are Ethyl Benzyl Aniline Sulphonic Acid (EBASA), Para Nitro Toluene Ortho Sulphonic Acid (PNTOSA), Melamine Formaldehyde Resin and Urea Formaldehyde Resin. Location: Survey No.: 50/paiki ‐2, Village: Dhroliya, Taluka: Tankara, District: Morbi, Gujarat. Geographic Coordinates Latitude: 22°31'55.39"N Longitude: 70°43'12.00"E Google image showing proposed project site is given below; M/s. Aaradhya Industries Page 4 of 14 PFR Salient features in the surroundings area of the proposed site within 10 km radius are as follows: Sr. No. Important Features Description 1 Location Survey No.: 50/paiki ‐2, Village: Dhroliya, Taluka: Tankara, District: Morbi, Gujarat. 2 GPS Coordinates Latitude: 22°31'55.39"N Longitude: 70°43'12.00"E 3 Temperature Range 19.7˚C to 33.8˚C (average) 4 Mean Sea Level 95 m 5 Annual Rain Fall 592 mm (average) 6 Nearest Railway Station Padadhari Railway Station – 16.3 km in SW direction 7 Nearest Airport Rajkot Airport – 25.4 km in SSE direction 8 Nearest Taluka Tankara – 13.5 km in NNE direction 9 Nearest Village Dhroliya – 1.2 km in NW direction 10 Nearest State Highway SH 120 – 0.56 km in SSE direction 11 Nearest National Highway NH 947 ‐ 32.2 km in NW direction 12 Nearest River/Water body Mitana Dam – 3.85 km in NE direction Virvav pond – 6.6 km in NW direction Demi River – 4.1 km in East direction 13 National Parks / Sanctuary None within 10 km radius. (ii) Alternative Sites considered No other sites were selected. (iii) Size or magnitude of operation List of Proposed Products Sr.
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