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HINDALCO INDUSTRIES LIMITED

UNIT: BIRLA COPPER, DAHEJ



A Report on
Market Study and Vendor Analysis of Hydrated Lime


Prepared by, Verified by,

Kiran Prachand Ajaypal Singh Bedi
Sr. Officer (Materials) DGM (Materials)


Submitted to,

R K Gangopadhyay
HOD (Materials)
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Index
Sr. No. Content Page No.
1) Introduction 3
2) Manufacturing process of Hydrated Lime 4
3) Market Study of Hydrated Lime: 6
4) Vendor Visit and Analysis 8
5) Observations 14
6) Suggestions and Recommendations 13
7) Conclusion 15

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1. Introduction
Hydrated Lime
Hydrated lime is mainly composed of Calcium dihydroxide
Ca(OH)2. It is obtained by hydrating quicklime (essentially
calcium oxide CaO) using specic equipments called hydrators.
Quicklime is manufactured by burning limestone of very high
purity (made of calcium carbonate CaCO3) at temperatures
around 900C in dedicated kilns. Hydrated lime is the reaction
product of quicklime and water
The major application of Hydrated Lime is as follows
Water Treatment Plant
Effluent Treatment Plant
pH Control
Paint Industries
Petroleum refining Industries
Food Industries
Leather Industry
Paper Industry
Pesticides
Fertilizers
Metallurgical Industries (Copper, Aluminum, Steel, Iron, etc)
Marble/Granite Cutting
Glass Industry
Pharmaceutical Industry
Cement paints
Bleaching Powder
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Di Calcium Phosphate manufacturing
Rubber Industry
Road making and construction
Sugar Industries
2. Manufacturing process of Hydrated Lime
The detail manufacturing process of Hydrated Lime is as per diagrm-1.

Diagram-1: Pictorial representation of Manufacturing of Hydrated Lime

A Lime stones is collected from mines, which is then heated in the Lime Kiln to
above 825 C (1,517 F), a process called calcinations or lime-burning, which
makes quick lime.
Quick lime (CaO) when hydrated or slacked with water produces hydrated lime
[Ca(OH)2]. The reaction is strongly exothermic and is associated with evolution of
380 to 490BTU/lb of lime.
The reaction can be represented as:

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CaO + H2O Ca (OH)2 + heat
Ca (OH) 2 + heat CaO+ H2O vapor
There are many forms of hydrated lime, the main distinguishing feature being the
amount of excess water they contain. However the product available in the market
is 85% and 90% Hydrated Lime. Below 85% hydrated lime is low purity material
while above 90% is high purity material.
Hydrated Lime is very fine white colored powder. The material can generally packed
the 40kg bags, or Jumbo bags. This can also be transferred through Bulk Tankers
as per specific requirements.
Below is the details flow chart of manufacturing process of Hydrated Lime
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3. Market Study of Hydrated Lime:
Due to availability of the Major Raw material (Lime Stone), industry is situated in
Rajasthan, mainly North west side of Rajasthan. The market is equally divided
between Manufacturers and Traders. It is also possible that traders might supply
the material at the low cons than the manufacturer, but the quality of the product
may differ since they source the material from different manufacturer.
The main areas where the manufacturing facilities are found like Piparcity,
Ransigaon, Hariadana, Bhilara towards Jodhpur-Jaipur National Highway and
Manakpur towards Jodhpur-Nagaur. Piparcity is main capital for the industry where
major manufacturers are located.
3.1) Piparcity:
Piparcity is 65 km away from Jodhpur. The major market is situated at the belt of
Piparcity. Since the availability of the raw material (Lime Stone) towards this area
is more, so here both the quick lime and hydrated lime manufacturing plants are
located to this area. However the quality of the raw material is slightly left behind
as compared the Manakpur belt, thus the product quality slightly differ. Piparcity
belt is distributed to the long area of approx 30-40kms towards Ransigaon. Some of
the manufacturers who have manufacturing facilities towards Piparcity belt are as
below.
1. Shivam Chemicals
2. Aditya Chemicals
3. Sigma Minerals Limited
4. Ankur Minerals Limited
5. Perfect Hydrochem
6. Malborough Polychem
7. RajLaxmi Chemicals
8. Sanmati Lime
9. Rama Chemicals
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10.Shyam Lime
11.Classic Hydrochem
12.Vikash Lime
13.Kushal Chemicals
14.Raj Chemicals and many more
However the big manufactures towards this belt are Sigma Minerals Limited,
Malborough Polychem, Shivam Chemicals, and Aditya Chemicals.
3.2) Manakpur
Manakpur is situated in Nagaur tehsil and located in Nagaur district of Rajasthan
and it is approximate 120kms from Jodhpur. Towards Manakpur, there are many
Lime Kilns are located than manufacturing facilities of Hydrated Lime. Malborough
Polychem has the major Lime Kilns towards this side. Quality of Lime stone is
slightly good as compared to Piparcity Belt. Some of the manufacturers who has the
manufacturing facility towards Manakpur belt are as below
1. Sigma Minerals Limited
2. S R Chemicals
3. Jannat Lime
4. Tara Minerals and Chemicals
5. Brij Enterprises and many more
The big manufactures towards this belt are Sigma Minerals Limited, and Tara
Minerals & Chemicals.
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4. Vendor Visit and Analysis
There are 10 existing suppliers through which we are getting the supply as given
below.
1. Brij Enterprises
2. Shivam Chemicals
3. Aditya Chemicals
4. Classic Hydrochem
5. Sanmati Lime
6. Rama Chemicals
7. Malborough Polychem
8. Tara Minerals
9. Shyam Lime
10. Maruti Chemicals
11. D S Chunavala
Out of the 10 suppliers, D S Chunavala and Maruti Chemical are traders and their
offices are located in Bharuch and Ahmadabad respectively. In addition to above,
there are 2 existing suppliers Jannat Lime and Rajlaxmi Chemicals to whom trial
order were placed.
4.1) Existing Vendors
a) Brij Enterprises:
Manufacturing facility of Brij Enterprise is located at approximate 40 Kms from
Jodhpur City, near to the extreme right end of the new IIT Jodhpur Campus
towards Manakpur. The approximate production of the Hydrated Lime is 40-50
MT/day. There are 2 plants at the location and it purely follows traditional
process of manufacturing since many activities are done manually. It is small
scale manufacturer. Mr. Bunty who is the proprietor of the firm manages the
plant himself by visiting the plant on every alternate day.
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b) Shivam Chemical:
Shivam Chemical has one of the big manufacturing facilities at Piparcity with
approximate daily production of 150-200 MT. Plant has equipped with Lime Kilns
too. It is located at Jodhpur-Piparcity Highway and is very much easy for
transportation due to location. Mr. Rehman handles the plant Operations and
daily dispatches at the plant.
c) Aditya Chemicals
The location of the plant is just besides the Shivam Chemicals at Jodhpur-
Piparcity Highway and closer towards the Piparcity. Aditya Chemicals has 2 units
at the Piparcity. Aditya Chemical is the major manufacturer at Piparcity location
with approximate production of 200-250 MT/day. Mr. Somani who is Manager at
the plant handles the Operations and dispatches. The plant has direct source of
raw material for Hydrated Lime. It is also observed that plant has facility of
Tanker supply.
d) Classic Hydrochem
Classic Hydrochem is one of medium scale manufacturer and supplier for
Hydrated Lime. Classic Hydrochem and another manufacturing facility by name
of Perfect Hydrochem. Both plants are located near Ransigaon Piparcity belt and
nearest to each other. Both the plants has equal production faculty and
approximate production capacity taken together is 80-120 MT/day. Mr. Ramesh
who is proprietor of both the firm has one additional location at which erection
work is going on which will soon be functional.
e) Shyam Lime
It has facility location just behind the Perfect Hydrochem plant. The approximate
production of the plant is 25-30MT/day. Mr. Ghanshyam who is the owner of the
firm has its own mines and rented Lime Kilns. The plant operations are managed
by Mr.Ghanshyams Cousin who lives at premises of the plant itself. The plant is
slightly inside from the highway.

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f) Sanmati Lime
It is facility arranged and properly managed plant. The plant is fully automated
with only single labor for monitoring. The facility is well prepared for monsoon
arrangements with tin sheds at all sides of the plant. Thus during monsoon
season, operation of the plant will not be affected. The approximate production
of the plant is 50-60MT/day. Mr. Arun who is owner of Sanmati Lime has one
more firm named Mahavir Lime which is approximate 30 Kms away from the this
facility towards Bhilara
g) Rama Chemicals
The plant is just besides the Sanmati Lime. Mr. Amit who is proprietor manages
the firm as a family business and one supervisor who handle the plant
operations. The approximate daily production of plant is 50-60 MT. It has one of
the good manufacturing set up at the location with the good quality of material
in the market.
h) Malborough Polychem
It is one of the big manufacturers in at the Ransigaon locations towards Piparcity
belt. It has big manufacturing facility and one of the major suppliers for
Hydrated Lime. It has highest number of Lime Kilns and one of the major
suppliers of Raw Material for Hydrated Lime to the other small manufacturer.
Malborough has a major Lime Kilns towards Manakpur. The approximate
production of Hydrated Lime is 200-250 MT/day
i) Tara Minerals and Chemicals Pvt. Ltd.
This is one of the professionally managed and big manufacturers of Hydrated
Lime. Manufacturing facility is located at approximate 100kms from Jodhpur
towards Manakpur. The approximate production of the plant is around 10-150
MT/day. The firm is owned by Mr. Boob and his brother. Mr. Harsh who is the
son of the director manages the marketing and dispatches.


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j) Rajlaxmi Chemicals
It is one of the medium scale manufacturer suppliers of the Hydrated Lime and
supplying the material to Hindusthan Zinc Limited. It is major supplier of Lime
Bulk Tanker with approximate 3 tankers per day. The daily production of the
plant is 100MT. There are 2 plants, one is located at the Ransigaon and another
at Manakpur. Firm is managed by Mr. Mahesh Banjara and his father located at
Piparcity. They also owned 2 other firms for the same products.
k) Jannat Lime
It is very small scale manufacturer supplier of Hydrated Lime has a
manufacturing location at Manakpur. The approximate production of plant is 15-
20 MT/day. The plant has also equipped with its own Lime Kilns at the same
premises. Plant is managed by Mr. Farid and his brother.

4.2) New Vendors
1. Sigma Minerals Limited
It is big manufacturer for Hydrated Lime at Jodhpur. There are 2 units; one is
located at Piparcity having 2 plants and other at Manakpur having plant. The
total capacity of the production all together is 350-400 MT/day. There is also
capacity expansion project is going on at Manakpur location with additional
capacity of 300 MT/day.
The company is limited firm with Annual turnover of 65 crore and has
approximate employee size 250. The corporate office is located at Heavy
Industrial Area Jodhpur. The corporate office is well dedicated for Marketing and
dispatches. The supplies are done in 40 kg bags and Jumbo bags. The bulk
tanker can also be supplied by firm.
2. Ankur Minerals Pvt Ltd.
It is one of the medium scale manufacturer supplier of Hydrated Lime. The plant
if located at Ransigaon. The approximate capacity of the plant is 80 MT/day. The
office is located at Shashtri Nagar Jodhpur.
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3. Vikash Lime
It is small scale manufacturer supplier. It is supplying the material to us trough
Maruti Chemicals. The approximate manufacturing capacity of plant is 40
MT/day.
4. Kushal Chemicals
It is located at Piparcity and besides Aditya Chemicals. It has continuous process
linked to each other that is manufacturing of quick lime and Hydrated Lime.
Lime Kilns and Hydrated Lime plant is at the single premises. The approximate
capacity of the production is 40-50MT/day.
5. Raj Chemicals
It has fully automated plant having lime kilns and hydrated lime plant connected
to each other. The approximate plant capacity is 30-40 MT/day.
6. Vijay Minerals
It is the small scale manufacturer having the plant at Piparcity and capacity of
approximate 40 MT/Day

There are many manufacturer of the Hydrated Lime at the Piparcity and Manakpur
belt. All the manufacturers have the similar facility. The capacity only differs in the
number of Hydrator. However the suppliers which can be categorized as being
manufacturer are Sigma Minerals Limited, Malborough Polychem, Aditya Chemicals,
Shivam Chemicals, and Tara Minerals Pvt. Ltd. Also the suppliers which can be
categorized as medium manufacturers are Sanmati Lime, Rajlaxmi Chemicals,
Classic Hydrochem, Ankur Minerals. Rest all has approximate equal manufacturing
capacity in the complete market.
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5. Observations
The complete lime market has perception about Hindalco Industries Limited
including existing suppliers that company is low paying industry. However, the
major advantage working with Hindalco for suppliers is payment term. Payment
releases for the supplies on time with agreed terms of 30 to 45 days which benefit
the suppliers for cash flow.
Another advantage is to have purchase order of Hindalco Industries Limited.
Documents itself has very much importance for the suppliers to attract the
customers since associating with major industry like us is helpful for the suppliers
to grab the business in the market.
We are being one of the big industry in India, everyone try to associate with us
even by compromising the cost. It is also observed that few years ago, it was very
difficult to enter into our unit or to get it registered as vendors. However at the
present situation, it has perception in the market that order can be grabbed just
slightly breaking the cost at lower level. But it will not give guarantee of the
supplies as and when we required.
Due to low cost and heavy detention of the vehicles from our side, it becomes
difficult to arrange transportation and also truck drivers avoid loading the materials
for our location. Due to such cases, truck drivers are now charged additional
detention from suppliers even if the vehicle is unloaded within 24 hours since
documents does not make entry of the reporting time of the vehicle. Due to
detention of the vehicle suppliers also do not keep the supplies in regular unless
they get the confirmation that there is no waiting or detention of vehicles.
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6. Suggestions and Recommendations
A. Without Financial Implications for Company
1. To provide the schedule of the dispatch of the vehicle as per our
requirement. This will helpful in arranging the vehicles. Schedule includes the
particularly the days of dispatched for week or for a month. This will also to
avoid congestion at the plant for vehicle unloading
2. It is suggested that to provide the reporting time of the vehicle at the
material gate on the documents in addition to. This will give the actual
detention time of the vehicle of the vehicle. So that it will benefit the supplier
to negotiate with the transporter.
3. To provide the receipt confirmation of vehicle with actual quantity of the
receipt.
4. To provide lab chemical report of the material for purity
5. To provide the details of the payment such as invoice number against which
payment is released
6. To provide the tentative planning for the requirement of the material for a
week.
B. With Financial implications on Company
1. For price changes, the other cost such as labor cost, cost of transportation
for raw material, packing cost, vehicle detention etc also should be
considered in addition to Pet Coke and diesel price
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7. Conclusion
Lime market is very saturated market with large number of small scale and medium
scale manufacturers. Due to easy availability of the raw material and continuous
demand, many of the manufacturers have established the business as unorganized
shops in the market. There are equal numbers of traders also operated in the
market which can provide the material at cheaper cost but compromising the
quality of the product.
There are mainly two grades of the Hydrated Lime available in the market i.e. 85%
and 90%. The purity of lime is lies between 85% to 90% water content. More than
90% of the material is high purity grade material and below 85% is low purity
grade material. There is also a good demand of low purity material in the market.
The supply of the material is mainly depending on the transportation. Since
availability of the quantity of material is in abundant quantity and transportation is
at limited scope. Thus in the season period, there is monopoly of the transporters.
Providing the tentative schedule of the requirement of the vehicle for a week and
designated days to arrange the vehicle will help suppliers to negotiate with
transporters and to arrange the vehicle for regular supplies. This will also benefit in
reducing the detention and congestion of the vehicle at our end. All our existing
vendors leaving one or two are capable enough for fulfilling our day to day
requirement of the material.
Providing the reporting time of vehicle at the gate in addition to in and out time will
help suppliers to correctly calculate detention charges. This is help to save cost on
detention for suppliers and for us to get the regular supply since detention cost is
additional earning for the transporters without any justification at the present
situation.
It is said that for effective supply chain, there should be good relationships there
should be good relationship among the chain partners. Supply chain starts from
Suppliers itself. Thus for strengthening the relationship with suppliers, we should
address the issues faced while working and mutually understand the requirements
of the process.