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Zinc Chloride Manufacturing Industry

Capacity 0 Plant and Machinery cost 0.00 Lakhs
Working Capital 0.00 Rate of Return (ROR) 0.00 %
Break Even Point (BEP) 0.00 % TCI 0.00 Lakhs
Cost of Project 0.00Lakhs


Zinc Chloride Manufacturing Industry. Chemical Business Ideas & Opportunities

Zinc Chloride Market is expected to Increase at a CAGR of 4.6 % during the 2018 - 2028


Zinc chloride (ZnCl2) is an important compound and it is exists in its nine crystalline forms which are either colorless or white. It is actually a granular powder which we get by heating calcium chloride and zinc sulfate together. It has a specific gravity of 2.75, a pH of 4 and a burning taste. The anhydrous zinc chloride which is white is known for its solubility in water. This compound, which is deliquescent has several applications and the main uses include chemical synthesis and textile processing. It is soluble in many mediums, like water, alcohol, glycerol, and ether.

Some uses of this chemical are as follows:

·         Organic Product Synthesis - Synthesis of organic products in the laboratory, mainly as a moderate strength Lewis acid reaction, and several other reactions.

·         Chemical - It is used in the production of ethylacetate. It is also used as condensing agent for the production of organic dye-stuff. It is used as a stabilizing agent for diazonium compounds. It is used for the production of active carbon. It is used for Friedel Craft Reaction, Azotropic or Azeotropic Distillation, Desiccation.

·         Textile Processing Industry - 64% zinc chloride in water is used to dissolve starch, silk, and cellulose. It has many other applications in textile processing industry.

·         Dry Cell - It is used in dry cell batteries as an electrolyte.

·         Petroleum - It is a powerful emulsion breaker. It separates oil from water

·         Chemical Industry - it is used to prepare ethyl acetate. It is also used in the manufacturing of dyes, and many other industrial intermediate chemicals.

·         As a metallurgical flux - Zinc chloride has the ability to attack metal oxides (MO) to give derivatives of the formula MZnOCl2. This reaction is relevant to the utility of ZnCl2 as a flux for soldering. It is used in fluxes for galvanizing, soldering and tinning.

·         Herbicide - Zinc Chloride is used as an herbicide. It is used to control lichen and moss growing on the roofs of houses and other domestic dwellings, along walks, driveways, fences, and wherever moss grows.

Zinc chloride has wide range of applications in various end-user industries. Some of applications include Soldering, galvanizing and tinning of fluxes. Heat decomposes moist fluxes based on zinc chloride which forms hydrochloric acid. This acid helps removal of salts and oxides from metal surfaces which help in good metal-to-metal bonding. Odor control is another application of zinc chloride due to which it is in high demand in the market. The reaction of zinc chloride with sulfide minimizes the release of H2S gas in waste water treatment facilities, thus controlling odor. Vulcanization of rubber is the major application of zinc chloride among others.

Zinc chloride is widely used in the rubber industry. Zinc chloride helps dissolve cellulosic fibers in the scrap and catalyzes depolymerization of the elastomer. Zinc chloride is used for many other applications such as organic synthesis, as liquid fertilizer, for textile finishing, as wood preservative and for dry cell batteries

Market Outlook

Growing demand for zinc chloride from the chemical industry is anticipated to boost the growth of global zinc chloride market. Escalating demand from the textile industry is another factor contributing to the demand for zinc chloride in the market. Side effects of zinc chloride and availability of safer alternatives is expected to hinder the growth of global zinc chloride market. However, rising research and development activities for applications of zinc chloride is projected to fuel market growth during the forecast period.

On the basis of type, the high purity grade zinc chloride segment is projected to witness a relatively higher growth rate. High purity based powder and solution form zinc chloride are used for different applications, including galvanizing and soldering fluxes. Thus, they are projected to gain significant shares over the forecast period. The battery grade segment is projected to witness moderate growth.

Increasing demand for zinc chloride from petroleum industry to separate oil from water due to its emulsion breaker property is a major factor expected to drive growth of the global zinc chloride market. In addition, growing demand from electronic, agriculture and chemical sectors is expected to support growth of the global zinc chloride market. Furthermore, increasing adoption from of zinc chloride in dry cell batteries as an electrolyte in automotive sector, and increasing use of zinc chloride as dehydrating agent are other factors expected to support growth of the global zinc chloride market.

Global sales of zinc chloride is valued at US$ 270.9 Mn by the end of 2018 – witnessing Y-o-Y growth of 4.6% over 2017. Global Zinc Chloride market size will increase to Million US$ by 2025, from Million US$ in 2017, at a CAGR of during the forecast period.

The growing footprint of the chemical industry is a key reason contributing to the demand growth of metal based chemicals. Zinc chemical demand has been growing over the last few years as these solvents are used for different applications such as galvanizing, soldering and tinning fluxes, odour control, vulcanized fibre, and textile finishing, among others.

On the basis of end use, the global zinc chloride market is projected to be dominated by the chemical segment. Zinc chloride is widely used in the chemical industry for galvanizing fluxes, soldering and tinning fluxes, odour control, vulcanized fibre and textile finishing, among others. Agriculture and electronic industries are also projected to gain high traction over the forecast period. The pharmaceutical segment is projected to witness a relatively moderate growth rate over the forecast period.

Some of the key players in the zinc chloride market include Zaclon LLC, America Elements, TIB Chemicals AG, Global Chemicals Co. Ltd., P.T. Indo Lysaght, Apex Chemicals Corporation, Lipmes, Weifang Dongfangsheng Chemical Co., Ltd., Eurocontal SA, and others. Most manufacturers are venturing into developing economies such as Brazil, Poland, India, and other GCC countries to gain a competitive advantage and to expand their presence.



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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


                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


                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 


  •   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