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DIMETHYL FORMAMIDE-A PROFITABLE INVESTMENT

Capacity Plant and Machinery cost 0.00 Lakhs
Working Capital 0.00 Rate of Return (ROR) 1.00 %
Break Even Point (BEP) 0.00 % TCI 0.00 Lakhs
Cost of Project 0.00Lakhs

Description:

DIMETHYL FORMAMIDE –A PROFITABLE INVESTMENT Dimethylformamide is an organic compound with the formula (CH3)2NC (O) H. Commonly abbreviated as DMF (although this acronym is sometimes used for dimethylfuran), this colourless liquid is miscible with water and the majority of organic liquids. DMF is a common solvent for chemical reactions. Pure dimethylformamide is odourless whereas technical grade or degraded samples often have a fishy smell due to impurity of dimethylamine. Its name is derived from the fact that it is a derivative of formamide, the amide of formic acid. Dimethylformamide is a polar (hydrophilic) aprotic solvent with a high boiling point. It facilitates reactions that follow polar mechanisms, such as SN2 reactions. Dimethylformamide can be synthesized from methyl formate and dimethylamine or by reaction of dimethylamine with carbon monoxide. PROPERTIES: Alternate name CAS number Molecular formula Purity Appearance Odour Density (at 20 deg.C) Solubility Melting point Boiling point DMF 68-12-2 (CH3)2 CHON >99% Colorless, hygroscopic liquid Characteristic amine like odour 0.95 g per cm3 Freely miscible with water -60o c 152oc-154oc PRODUCT APPLICATIONS Dimethyl formamide is an important chemical raw material and also a solvent. It is mainly used in polyurethane, acrylic fiber/spandex fiber, pharmaceutical, pesticide, dyestuff and electronic sectors. CHEMICAL PROPERTIES: Critical Temperature: 374°C (705.2°F) Specific Gravity: 0.949 (Water = 1) Vapor Pressure: 0.3 kPa (@ 20°C) Vapor Density: 2.51 (Air = 1) Dispersion Properties: Soluble in water, diethyl ether, and acetone. Corrosivity: Non-corrosive in presence of glass. REACTIVITY Can react vigorously with oxidizing agents, halogenated hydrocarbons, and inorganic nitrates. Incompatible with carbon tetrachloride, alkyl aluminums, sodium tetrahydroborate, nitrates, chromic acid. Diisocyanatomethane, triethylaluminum, sodium hydride, lithium azide, metallic sodium, bromine, magnesium. Nitrate, potassium permanganate, nitric acid, chromium trioxide, borohydrides, phosphorus trioxide, diborane, octafluoroisobutyrate, sodium nitrite, perchloryl fluoride, potassium methyl 4,4'-dinitrobutyrate. Reaction with inorganic acid chlorides, such as phosphorous oxychloride and thionyl chloride, may form dimethylcarbamoyl, a suspect carcinogen. NATURE OF APPLICATION 1. DMF is widely used in the production and processing of polymers, Spinning solvent for polyacrylonitrile fibre and polyurethane fibre (spandex) and processing solvent for production of polyurethane artificial and synthetic leather. 2. DMF is used for the separation and refining of acetylene from crude olefin gas. 3. DMF is used in extracting butadiene from the C4 distillate obtained by naphtha cracking, etc. and in separating isoprene from C5 distillate. 4. Used as a solvent for recovery of H2S or SO2 or elimination of HCl, Cl, HBr etc. in hydrocarbons. 5. DMF is also used in extracting solvent of aromatic hydrocarbons in petroleum refining. 6. Gases like acetylene that are difficult to liquefy and handle safely can be stored and transported easily by dissolving them in DMF with a porous carrier solid (Ex. Calcium Silicate). 7. DMF is widely used as a solvent for reaction. Generally acetylation, chlorination, sulfonation and various condensation and polymerization reactions are among those where DMF is used as a solvent. 8. It is an excellent solvent for sulphonamide, vitamins, nitro furan, quinoline, adrenaline, amine chlorides, etc. It is widely used in the production of pharmaceuticals as a reaction solvent, extracting solvent and crystallizing bath. 9. DMF easily dissolves basic dye pigments nitroso pigments, phthalocyanine pigments, azo pigments and acid dye metal salts. It is also used as a solvent of colouring agent or an infiltrating ink for various films, wood, leather, resins etc. 10. DMF alone or as mixed with methylene chloride, is used as a remover of varnish or lacquers. INDUSTRIES SERVED Pharmaceuticals, Dyestuff and Pigment, Polymers SAFETY Reactions including the use of sodium hydride in DMF as a solvent are somewhat hazardous; exothermic decompositions have been reported at temperatures as low as 26 °C. On a laboratory scale any thermal runaway is (usually) quickly noticed and brought under control with an ice bath and this remains a popular combination of reagents. On a pilot plant scale, on the other hand, several accidents have been reported. TOXICITY DMF has been linked to cancer in humans, and it is thought to cause birth defects. In some sectors of industry, women are banned from working with DMF. For many reactions, it can be replaced with dimethyl sulfoxide. Most manufacturers of DMF list 'Life' or 'Chronic' as a health hazard in their MSDS since DMF is not readily disposed of by the body. According to IARC, DMF is a possible carcinogen, although EPA does not consider it a cancer risk. PACKAGING • 418.87 (190 kg) steel drums • Full Truck Load, 80 drums/shipment • Bulk Tank Truck • Rail Car INDIAN PRODUCERS Presently, only RCF Ltd. has the capacity to produce DMF in India. Their 2,500 TPA plant at Thai, based on technology from Acid Amirie Technologies Inc., USA is likely to go into commercial production shortly. They are likely to double their capacity to 5,000 TPA by 1996. The decision to expand will be taken after the 2,500 TPA DMF plant is fully operational through the CO route. Vam Organic Chemicals initiated work on a 3,000 TPA DMF project at Gajraula with technology from UCB, Belgium. They are planning only one step in this process. They will procure methyl formate from outside and react it with DMA to obtain DMF. The plant engineering is complete and is likely to go on stream shortly. There is no scope for additional capacity (in case RCF doubles their capacity to 5,000 TPA) till 1999-2000, considering a demand projection of around 7,400 tonnes by 1999-2000. PRODUCTION Total installed capacity is estimated around 3 lakh tonnes world wide compared to a total demand of about 1.8 lakh tonnes (including captive use). There are 16 existing plants worldwide. USA, Brazil and Canada share 24% of the total capacity, Europe (Germany, Spain, U.K., Belgium) share 38% of the total installed capacity, where as balance is shared by other countries. Globally, demand is shrinking or at least stagnant especially in Europe and America due to environmental reasons. DMF DEMAND SCENARIO DMF finds its domestic end use in the following applications: i) As a solvent in acrylic fiber production ii) In the manufacture of drugs and Pharmaceuticals iii) In polyurethane (PU) processing iv) Other miscellaneous application such as dyestuffs, paints, pigments etc Estimated percentage consumption by each end-use sector is given below. Acrylic Fiber 44% Drugs and Pharmaceuticals 38% Polyurethane Processing 8% Miscellaneous 10% TOTAL 100% DEMAND DRIVERS IN GLOBAL MARKET DMF markets exhibiting significant growth in the immediate future will include synthetic/artificial leather, electronics and acrylic fibers. Driven by the global fashion market, elastic fibers (elastane) have experienced the biggest expansion. These fibers are based on elastomeric polyurethanes. Consumption of DMF in synthetic/artificial leather, particularly in China, is expected to result in significant increases in world consumption, in terms of volume and annual growth rates. ASSESSMENT OF GLOBAL DEMANDS China is the largest consumer of DMF in the world market because of large Synthetic/artificial leather (polyurethane based) markets—an application that is comparatively miniscule in most other regions. Consumption in electronics, mainly in the manufacture of printed circuit boards, is a large market in Asia, especially Taiwan, the Republic of Korea and Japan. Global demand is 0.9 million metric tonnes per annum Most DMF is consumed as a solvent in chemical production. Global capacity utilization declined to nearly 55% in 2009 from 58% in 2007 as a result of a much faster pace of capacity expansions. Between 2007 and 2009, world capacity for DMF grew at an average annual rate of just over 6%, surpassing world consumption, which grew at an average annual rate of 1.7% during the same period. Increased Asian consumption, mainly in China, was balanced by declining demand in most other world regions because of the global recession. The technology licensors are: 1)AcidAmineTechnologiesInc. Plants available worldwide are mainly based on the technology supplied by AAT, USA. 2) U.C.B. S.A. SCENARIO IN CHINA China is the largest producer and consumer of DMF. The four largest importers of DMF were Japan, India, Taiwan and the Republic of Korea, together accounting for 63% of world imports in 2009. China and the Republic of Korea are the largest exporters, accounting for 53% and 27%, respectively, of world exports in 2009. China is the largest consumer of DMF because of large synthetic/artificial leather (polyurethane based) markets—an application that is comparatively miniscule in most other regions. Consumption in electronics, mainly in the manufacture of printed circuit boards, is a large market in Asia, especially Taiwan, the Republic of Korea and Japan. Consumption of DMF in synthetic/artificial leather, particularly in China, is expected to result in significant increases in world consumption, in terms of volume and annual growth rates. Unlike most other markets, demand for DMF in Asia, mainly China, is forecast to exhibit moderate to significant growth in most applications. Production facilities in the Americas, Europe and Asia are at risk for shutdowns. PROCESS FOR PRODUCTION There are two process routes for the manufacture of DMF namely direct synthesis and two-step process. 1) Direct synthesis 2) Two step process DIRECT SYNTHESIS The direct or one-step synthesis of DMF begins with either pure carbon monoxide or a gas stream containing carbon monoxide. This is reacted in a continuous process with N, N-dimethylamine (DMA), by using a solution of alkali alkoxide (usually sodium methoxide) in methanol as catalyst. Methyl formate is presumably formed as an intermediate. The reaction mixture passes over an external heat exchanger to remove the excess heat generated and to ensure thorough mixing of the components. The reaction is conducted between 0.5 and 11 MPa at 50~200°C. The reaction mixture exits the reactor through a decompression cham¬ber. In addition to N,N-dimethylformamide, the crude product contains methanol. A certain amount of acid or water deactivates any catalyst present resulting in the formation of sodium formate. Dissolved carbon monoxide, together with inert gases, escapes from the mixture during decompression and the off-gases are removed by combustion. Preliminary distillation is followed by second distilla¬tion in a separate column, here; dimethyl formamide is separated from methanol which contains traces of N, N-dimethylamine. Further distillation results in a product of 99.9% purity. TWO STEP PROCESS The two step process for the synthesis of N,N-dimethylformamide differs from direct synthesis because methyl formate is prepared separately and introduced in the form of 96% pure (commercial -grade) material. Equimolar amounts of methyl formate and N, N-dimethylamine are subjected to a continuous reaction at 60-100°C and 0.1 - 0.3 MPa. The resulting product is a mixture of N, N-dimethylformamide and methanol. The purification process involves distillation and is analogous to that described for direct synthesis. However, no separation of salts is required because no catalysts are involved in the process. Due to the corrosive properties of both starting materials and products, stainless steel has to be used as material of construction for production facilities. HANDLING PROCEDURE AND EQUIPMENTS Workers handling this material must be thoroughly trained in its hazards and its safe use, and must wear appropriate protective equipment and clothing. Keep away from all ignition sources. Ground and bond equipment and containers to prevent a static charge buildup, use spark-resistant tools, and avoid splash filling of containers. Avoid generating mists or vapors. Use the smallest amount possible for the purpose, in well-ventilated areas. Keep work area free of incompatible substances and extraneous materials, particularly those which can burn. Do not return contaminated material to the original containers. Keep containers closed when not in use. Empty containers may contain hazardous PROGNOSIS DMF demand in India is expected to nearly double from the level of 2150 tonnes in 1991-92 to 4100 tonnes by 1995-96. The increase in demand is mainly due to upward trend in acrylic fiber production capacity.


Information

  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
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NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:


• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period


We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.

 

The report contains all the data which will help an entrepreneur find answers to questions like:

• Why I should invest in this project?
• What will drive the growth of the product?
• What are the costs involved?
• What will be the market potential?


The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product.

The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.


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• This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.

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• This report helps you understand the viability of the project by disclosing details like raw materials required, manufacturing process, project costs and snapshot of other project financials.

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• The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players. 

• We use reliable sources of information and databases.  And information from such sources is processed by us and included in the report.

 

Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR