PHENYL ETHYL ALCOHOL

CONTENTS
SECTION

PRODUCT CHARACTERISTICS AND SPECIFICATION

SECTION

II

PRODUCT APPLICATIONS

SECTION

III

INDIAN MANUFACTURERS

SECTION

IV

IMPORT/EXPORT LEVEL

SECTION

PRICE DETAILS

SECTION

VI

INDIAN DEMAND

SECTION

VII

BROAD OUTLINE OF MANUFACTURING PROCESS

SECTION

VIII

RAW MATERIAL REQUIREMENTS, UTILITY

AND AVAILABILITY

SECTION

IX

GLOBAL SCENARIO

SECTION

DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

SECTION

XI

SWOT ANALYSIS

SECTION

XII

FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS

SECTION I
PRODUCT CHARACTERISTICS AND SPECIFICATIONS
General details
Alternate name

2-Phenyl ethanol,
Benzyl carbinol,
Phenylethyl alcohol

Molecular Formula

C8H10O

Molecular Weight

122

Appearance

Colourless liquid

CAS No.

60-12-8

Odour

Faint rosy flowery odour

Purity

99% min

Solubility

About 2% in H2O at 25 deg.C

Miscibility

Miscible with Alcohol, Glycerol and with fixed oils.

SECTION II
PRODUCT APPLICATIONS
Phenyl ethyl alcohol is extensively used in manufacture of synthetic rose perfumes, orange
blossom, Jasmine etc. and also in the synthesis of rose oils.
It is a good flavouring agent and preservative. Practically, all rose perfumes are compounded with
Phenyl ethyl alcohol.
It is used as perfumery chemical in the cosmetic formulations like detergents, soaps, perfumes,
cosmetic powder and lotions, bougue, paste cream etc.

SECTION III
INDIAN MANUFACTURERS
*

Sunanda Industries
Mysore-K.R.S. Road,
Metagalli P.O., Mysore-570 016

Cee Sulfones Ltd.

B-7, Rajratan Apartments
Ground Floor, Near Garden
Service Road, Jogeshwari (E),
Bombay-400 060

Hindustan Lever Limited,

Chemicals Division, ICT Link Road, B.D. Sawant Marg,
Chakala, Andheri (East), Mumbai-400 099.

S.H. Kelkar & Co. Ltd.,

36, Devkaran Mansion,
Mangaldas Road, Mumbai-400 002

*
*

Sanghi Organics, Indore

K.V.Arochem Ltd., Gujarat.

Indian installed capacity

3000 tonnes per annum

SECTION IV
IMPORT/EXPORT LEVEL
4.1.

Present import level

Around 140 tonnes per annum

Countrywise Imports
Period April 2001 to March 2002
Country

Quantity in Kgs

China P RP
France
German F REP
Japan
Netherland
Singapore
Spain

134016
2000
85
2600
25
60
2000

Sample of individual imports of Phenylethyl Alcohol

Period 2002
Name of the Importers
S.H.Kelkhar & Co.Ltd.
Pankaj Aerochemicals
Ltd.
Mangalam Drugs &
Organics
Firmenich Aromatics
India

Quantity in
tonnes
16.000

Value in Rs.

Country

Date

Port

1943240

China

Mumbai

0.224

23003

China

16.000

1840818

China

2.000

226135

China

17.01.2002 to
23.01.2002
01.04.2002 to
05.04.2002
08.05.2002 to
14.05.2002
17.07.2002 to
24.07.2002

Mumbai
Mumbai
Mumbai

Shekhawati Syntex
P.Ltd.

4.2.

16.000

1855128

Present export level

China

1245 kg per annum

Countrywise Exports of Phenylethyl Alcohol

Period April 2001 to March 2002
Country

Quantity in Kgs

Nepal

1245

SECTION V
PRICE TRENDS
Basic price

Around Rs.400 per kg

Taxes and duties

Extra as applicable

02.09.2002 to
06.09.2002

Mumbai

SECTION VI
INDIAN DEMAND
Phenyl ethyl alcohol is largely used in agarbathi, perfumery, cosmetic and soap sector.
PEA does not have any other chemical substitute which can compete with its price
structure, through Linalool is used to mimic PEA to some extent.
There are reported to be over 260 agarbathi producers in Karnataka state itself and around
450 units in the country.
Phenyl ethyl alcohol is used for providing flavour properties to toilet soaps, particularly
catering to the requirement of higher income group
Phenyl ethyl alcohol are generally used in the formulation of perfumery compounds used
in product such as face powder, scent, handkerchief perfumes, shaving cream, cigars etc.
Sectorwise demand for Phenyl ethyl alcohol
Sector

Demand in tonnes per annum

Agarbathi Industry

175

Soaps and Detergents

250

Perfumery Compounds

275

Total

700

The estimated growth rate in demand is around 10 to 11% per annum.

7

SECTION VII
BROAD OUTLINE OF MANUFACTURING PROCESS
Phenyl ethyl alcohol is manufactured in India via Fridel-Crafts reaction of Benzene with Ethylene
oxide using stoichiometric amounts of Aluminium Chloride.
This is not a clean route and a better and cleaner process is via epoxidation of Styrene and direct
hydrogenation of Styrene oxide to Phenyl ethyl alcohol. This route, via epoxidation, is generic
and substance like Methyl styrene, p-Isobutyl styrene can be utilised.

Ethylene oxide based route

Ethylene oxide is reacted with Benzene in the presence of Aluminium chloride catalyst to give
Phenyl ethyl alcohol.
C6H6 + H2C=CH2 + AlCl3 --------

C6H5CH2OH.AlCl3

H2O
C6H5CH2OH +
AlCl2.6H2O
Phenyl ethyl alcohol

Styrene based route

Excellent yields of Phenyl ethyl alcohol is obtained from Styrene oxide by hydrogenation using
Raney Ni, small amounts of NaOH and maintaining low temperature.
8

C6H5CH=CH2+C6H5COOOH ----

C6H5CH-CH2+ C6H5COOH

Perbenzoic acid
H2O
C6H5CH-CH2--------------H+

Styrene oxide

C6H5CH2CH2OH
Phenyl ethyl alcohol

Source of technology
*

National Chemical Laboratory, Pune

Major plant and machinery and suppliers

Name of the equipment

Name of the company

Reactor

Chemitherm Plants & Systems P. Ltd.,

30, Anandha Street
Alwarpet, Chennai-600 018
Texel Fabricators Pvt. Ltd.,
335, Sidco Industrial Estate,
Ambattur, Chennai-600 098, Tamil Nadu

Distillation column

Hydrabad Met Chem. Pvt. Ltd.,

34, C.I.E., Phase II,
Gandhinagar, Opp. IDPL Colony
Hyderabad-500 037
Richard Engineering (Bombay) Pvt. Ltd.
42, IIF, Veerabadran Street
Near Valluvar Kottam
Nungambakkam, Chennai-600 034

Vacuum dryer

Bhuvaneswari & Co.

Old Trunk Road
Chennai-600 043
Febchem Engineering Works
Plot No.A/2, Sector-A,
Sanwer Road, Industrial Area
Indore-452 003

Boiler

Cethar Vessels Ltd.,

No.4, Dindigul High Road,
Trichy
Firetech Boilers Pvt. Ltd.
No.211, 2nd Cross,
38th Main, B.T.M. Layout
2nd Stage, Bangalore-68

10

SECTION VIII
RAW MATERIAL REQUIREMENTS AND AVAILABILITY
Basis

One tonne of Phenyl ethyl Alcohol

Proces: Ethylene oxide based

Benzene
Ethylene oxide
Aluminium chloride

2.35 tonnes
0.60 tonnes
2.45 tonnes

Utility
Fuel

80 litres

Power

50 H.P.

Source of Raw material availability

Name of the raw materials

Name of the company

Benzene

Indian Petrochemicals Corporation Ltd., Gujarat

Reliance Industries Ltd., Gujarat
Kochi Refineries, Cochin

Ethylene oxide

India Glycols Ltd.,U.P.

Indian Oil Corporation Ltd.,Gujarat
Indian Petrochemicals Corporation Ltd.(IPCL)Gujarat
Reliance Industries Limited, Gujarat

Aluminium chloride

Bhagyanagar Chlorides Private Ltd., Hyderabad

Kanoria Chemicals & Industries Ltd., Calcutta
Base Metal Chemicals, Gujarat
IOTA Chemiculture Limited,Gujarat
Kline Chemicals Pvt Ltd.,Gujarat

11

SECTION IX
GLOBAL SCENARIO
Global suppliers
In recent times, the export of perfumery chemicals, particularly Phenyl ethyl alcohol from
China to the US has declined and China has lost some reliability as a PEA exporter.
Export level of PEA from China to USA

Around 600 tonnes per annum

Mexico has now become one of the leading PEA exporters to US. The US Phenyl ethyl
alcohol buyers also prefer the Mexican material as it involves less trade restrictions and
transportation problems are also less.
PEA imports in US from France have decreased to around 100 tonnes per annum to half
of what was for the last five years. Rhone-Poulenc is the leading supplier from France
Other French companies exporting PEA to US, is Givaudan Roure. Haarmann and
Reimer
AG (H&R) also exports PEA to US through its subsidiary. The company has a PEA plant
in Holzminden, Germany, Bayer AG having its PEA plant at Ludwigshafen, Germany
also exports PEA
German PEA exports to US have also decreased to the level of around 300 tonnes per
annum in recent times. Bayer and H&R are the only Germany companies to export PEA
to US
Toyotama of Japan has 1100 tonnes per year PEA capacity. It sells its products mainly to
South American countries.

12

Important global producers include the following

1.

International Flavours and Fragrances Ltd., UK

Duddery Hill, Haverhill
Suffolk CB9 8LG

2.

Shell International Co. Ltd., U.K.

(a) Shell Centre, Down stream building
London SE1 7PG
(b) Heronbridge House
Chester Business Park
Chester CH4 9QA

3.

Bush Boake Allen Ltd.,

a) Blackhorse Lane
Walthamstow
London E17 5QP

4.

Arco Chemical Co.

3801 West Chester pike,Newtown Square,
PA 19073
USA.

5.

BASF Corporation
3000 Continental Drive North,
Mount Olive,
NJ 07828-1234
USA.

6.

Penta Manufacturing Co.,

50 Okner Parkway, Livingston
NJ 07039-1604
USA.

7.

Spectrum Bulk Chemicals,

A Div. of Spectrum Quality Products
755 Jersey Avenue, New Brunswick
NJ 08901
USA.

8.

Toyotama
Tokyo 103
Japan.

13

SECTION X
DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND
PROFITABILITY PROJECTIONS
Economic capacity

60 tonnes per annum

Project cost

Rs.146 lakhs

Assessment of project cost

1.

Land

S.No.

Description

1.1
1.2

Cost of land of one acre at Rs.5.5 lakh per acre

Cost of levelling, laying internal roads/fencing and
Compound wall
Subtotal

2.

6.05

Building

S.No.

Description

2.1
2.2

Factory building of area 320 sq.m. at Rs.3200/sq.m.

Non-factory building of area 60 sq.m.at Rs.4500/sq.m.
Subtotal

3.

Description

3.1
3.2
3.3
3.4

Cost of basic plant and machinery

Instrumentation and control
Pipelines and valves
Structurals for erection
Subtotal
Octroi, excise duty, sales tax, etc.at 12%
Packaging and insurance charges (2%)
Transportation charges (2%)
Machinery stores and spares (2%)
Foundation charges (2%)
Installation charges (2%)
Total cost of plant and Machinery

4.

Cost
Rs.in lakhs
10.24
2.7
12.94

Cost of Plant & Machinery

S.No.

3.5
3.6
3.7
3.8
3.9
3.10

Cost
Rs.in lakhs
5.5
0.55

Technical know-how fees

Cost
Rs.in lakhs
53
3.98
5.3
2.65
64.93
7.79
1.3
1.3
1.3
1.3
1.3
79.21
Rs.2 lakhs

14

5.

Miscellaneous fixed assets

S.No.

Description

5.1.
5.2.
5.3.
5.4.
5.5.
5.6.
5.7.

Electrification
Steam boiler and auxillaries
Water storage tank, borewell etc.
Fuel storage tank
Laboratory equipment
Office machinery & equipment
Material handling equipment, packaging machinery,
Weigh balance, etc.
Diesel generator
Effluent treatment
Total

5.8.
5.9.
6.

Cost
Rs.in lakhs
1
2.5
1.2
0.8
0.8
1.0
1.2
4.4
1.2
14.1

Preliminary & Pre-operative expenses:

S.No.

Description

6.1.
6.2.
6.2.1
6.2.2
6.2.3
6.2.4
6.2.5
6.2.6
6.2.7

Preliminary expenses
Pre-operative expenses:Establishment
Rent rates and taxes
Travelling expenses
Interest and commitment charges on borrowings
Insurance during construction period
Other preoperative expenses and deposits
Interest on deferred payment
Total

Cost
Rs.in lakhs
0.8
0.6
0.8
0.8
2.5
1.0
6.5

7.

Provision for contingency

Rs.7.64 lakhs

8.

Working capital margin

Rs.17.62 lakhs

9.

Total project cost

Rs.146 lakhs

10.

Means of Finance

Promoter's contribution
Term loan from financing institutions
Total project cost

11.

Rs58 lakhs
Rs.88 lakhs
Rs.146 lakhs

Financial statements

15

Cost of production
A

Variable cost

Rs. in lakhs

Raw material and utilities

Spares and maintenance
Selling expenses
Total variable cost (A)

125.74
4.75
12
142.49

Fixed cost

Salaries and wages

Interest on term loan and working capital loan
Depreciation
Administrative expenses
Total fixed cost (B)

9
25.29
10.12
7.2
51.61

C.

Total cost of production (A+B)

D.

Selling price per kg. (in Rupees)

400

E.

Annual sales turnover

240

F.

Net profit before tax (E-C)

45.9

G.

Breakeven point in %

53%

194.10

16

SECTION XI
SWOT ANALYSIS
Strength

Growing demand in view of important

application in perfumery sector

Weakness

Small capacity plants in India

Opportunity

Technology improvement that would

facilitate more varieity of application

Threat

Competitiion from imports

17

SECTION XII
FACTORS INFLUENCING THE POSTION FOR A NEW INDUSTRY AND
RECOMMENDATIONS
Phenyl ethyl alcohol is sophisticated product, finding vital application as perfumery additive in
toilet soaps, agarbathies and other perfumery products.
Considering the pace of industrial and economic development, the cosmetic and perfumery
industries are likely to register significant growth in the coming years. In view of this, the
demand for Phenyl ethyl alcohol is likely to go up steadily in the coming years.
Considering the relevance and applications of the product, case exists to create further capacities
for phenyl ethyl alcohol in the country to meet the additional projected demand in the coming
years.
The important aspect to be taken care of in the project is the factor of technology. It should be
optimum and competitive. Well established organisations in the country like Hindustan Lever
Ltd., is the major producer of Phenyl ethyl alcohol. Therefore, the new project should be in a
position to compete with such products of Hindustan Lever Ltd., in terms of price and quality.

18