India Glycol Ltd Arpit Singh Final Report

THE SUMMER TRAINING REPORT ON

“EXPORT DOCUMENTATION IN

INDIA GLYCOL LTD. ”

Submitted to

GRAPHIC ERA UNIVERSITY

In partial fulfillment of the Requirements for the award of

Degree in

MBA (International Business)

Submitted to : Submitted by :

Mrs. Rupa Khanna Programme Coordintor MBA (IB/IT)Faculty of ManagementGraphic Era University

Arpit Singh Roll No : 1400046

MBA (IB)

GRAPHIC ERA UNIVERSITY(2008-2010)

Export Documentation in IGL - 1 - Graphic Era University, Dehradun

DECLARATION

Hereby declare that the project report entitled “Export Documentation”

under Commercial Department submitted for the degree of Master of Business

Administration, is my original work and the project report has not formed the

basis for the award of any degree or similar other titles. It has not been

submitted to any other University or Institution for the award of any degree or

diploma.

Arpit singh

MBA (IB)


CONTENT

Sl. No. Title of the Chapter Page No.

Acknowledgement 2

Preface 3

Executive Summary 4

1 Introduction : History Chemical Industries 5

2 Indian Chemical Industry 6

3 Internal Component of Indian Economy 12

4 Company Profile : India Glycol Ltd. 14

5 SWOT Analysis 16

6 Quality Through Advanced Technology 20

7 Product Profile 21

8 Chemical Performance in Various Industries 30

9 Raw Material list come from the supplier 52

10 Customer Oriented R&D support 54

11 Value addition at every step 55

12 Reaching in the customer 57

13 Export Documentation 58

14 Director Report Year ended March, 08 68

15 Quarterly Overview of the company 79

16 India Glycol get a Prudent push 81

17 Conclusions 83


ACKNOWLEDGEMENT

It was a great privilege and good practical experience to do an industrial

training at INDIA GLYCOL LTD., KASHIPUR. I would like to express my deep

sense of gratitude to the staff of Commercial Department of IGL, Kashipur for

their timely support during my training period.

The guidance, help and co-operation of Mr. N.K. Sharma, Manager, IGL,

Kashipur is being a constant source of motivation and giving knowledge about

Export Documentation activities in an Organization.

I would also like to thank Mrs. Rupa Khanna Malhotra, Coordinator MBA

(IB/IT) for her guidance, critical comments, inspirational discussion and helpful

support to me in completing this report. I also express my sincere thanks to Mr.

Manish Bisht, Dean of Management Studies for providing us great learning

environment throughout course duration.

I am not able to express my thanks to my parents and family members those

always ready to support me morally and give me motivational power to do this work

effectively. I also thanks to my friends, who put the germs of idea related to this

project and extended their continued inspiration. This training was a good exposure

that will definitely help me in my professional career.

Arpit SinghMBA (IB)


PREFACE

The starting of the road of chemical industry and the status in the Indian

market are improving day by day. By some facts and figures you will get to know the

contribution of chemical industry in the economic growth of the country. After this

India Glycol Ltd. profile come in to picture, Its business strategies by using world

class technology different range of chemical products and their performance in

different industries.

If we talk about global market there are different products which are export

from the country with legal export documentation product. It also shows SWOT

analysis CSR and R & D support to reach the different customer domestic as well as

global. At the end director report will give us a financial internal and external growth

opportunities and its present performance. They mainly emphasis are on the Industrial

chemical products in all over the globe.

Arpit SinghMBA (IB)


EXECUTIVE SUMMARY

Playing every stroke of excellence India Glycol Ltd., Kashipur, has set a

strong foothold in the chemical industry. With the assistance of a well qualified team,

and brought a superlative range of Industrial Inorganic Chemicals and laboratory

chemicals etc. Today, IGL is well reckoned as one of the overriding Laboratory

Chemicals Manufacturers and as the most preeminent Industrial Chemical exporter

based in India. This report will tell you about how “A idle stone could be become a

weapon for person who knows its value” that means how chemical transformed into a

chemical industry and after a decade it become a part of economic growth of the

county.

The summer training report entitled “Export Documentation under

Commercial Department in India Glycol Limited, Kashipur, Uttarakhand” shows the

path of success and building a great valuable product for the development of an

industry as well as the presence in the global market.

This report provides all the information regarding “How an advice became

(India Glycol Ltd.) life of thousands of people”. Status of India Glycol Ltd. in India

and global market which produce different chemical products in different industries.

The report also highlighted how many products exported globally by the firm and

their presence in the global market as a strong chemical player.


INTRODUCTION

GLOBAL BASE CHEMICAL INDUSTRIES HISTORY

Chemical industries can be traced back to Middle Eastern artisans, who refined alkali

and limestone for the production of glass as early as 7,000 BC, to the Phoenicians who

produced soap in the 6th cent. BC, and to the Chinese who developed black powder, a

primitive explosive around the 10th cent. AD In the Middle Ages, alchemists produced small

amounts of chemicals and by 1635 the Pilgrims in Massachusetts were producing saltpeter

for gunpowder and chemicals for tanning. But, large-scale chemical industries first

developed in 19th cent. In 1823, British entrepreneur James Muspratt started mass producing

soda ash (needed for soap and glass) using a process developed by Nicolas Leblanc in 1790.

Advances in organic chemistry in the last half of the 19th cent. allowed companies to

produce synthetic dyes from coal tar for the textile industry as early as the 1850s.

In the 1890s, German companies began mass producing sulfuric acid and, at about

the same time, chemical companies began using the electrolytic method, which required

large amounts of electricity and salt, to create caustic soda and chlorine. Man-made fibers

changed the textile industry when rayon (made from wood fibers) was introduced in 1914;

the introduction of synthetic fertilizers by the American Cyanamid Company in 1909 led to a

green revolution in agriculture that dramatically improved crop yields. Advances in the

manufacture of plastics led to the invention of celluloid in 1869 and the creation of such

products as nylon by Du Pont in 1928. Research in organic chemistry in the 1910s allowed

companies in the 1920s and 30s to begin producing chemicals for oil. Today, petrochemicals

made from oil are the industry's largest sector. Synthetic rubber came into existence during

World War II, when the war cut off supplies of rubber from Asia.

Since the 1950s growing concern about toxic waste produced by chemical industries

has led to increased government regulation and the establishment of the Environmental

Protection Agency (1972). The leakage of toxic chemicals at the Union Carbide plant in

Bhopal , India (1984), was the worst industrial disaster in history and heightened public

concern about lax environmental regulations for chemical companies in developing

countries. Beginning in the 1980s, U.S. corporations faced expanding competition from


http://www.encyclopedia.com/doc/1E1-Bhopal.html

foreign producers, including some Third World oil producers who have set up their own oil

refining and petrochemical industries. In 1997 the U.S. chemical industry produced about

$389 billion worth of products and employed 1,032,000 workers. It exported about $71

billion worth of chemicals.

INDIAN CHEMICAL INDUSTRY

The chemical industry is one of the earliest domestic industries in India,

contributing considerably to both the industrial as well as economic growth of the

country since it achieved independence in 1947. The industry presently produces

around 70,000 commercial products, which range from toiletries and cosmetics, to

plastics and pesticides.

The wide and diverse range of products can be broken down into several

categories, which include inorganic and organic (commodity) chemicals, plastics and

petrochemicals, drugs and pharmaceuticals, dyes and pigments, pesticides and

agrochemicals, fine and specialty chemicals, and fertilizers.

With primary focus on modernization, the Govt. of India has taken an active

role in promoting the growth and development of Indian domestic chemical industry.

The Department of Chemicals & Petro-Chemicals that has been part of the Ministry

of Chemicals and Fertilizers since 1991, is responsible for making policy making,

planning, development, and regulation of the industry. In the private sector, several

organizations, including the Indian Chemical Manufacturers Association, the

Chemicals and Petrochemicals Manufacturers Association, and the Pesticides

Manufacturers and Formulators Association of India, all work with the prime

objective of promoting the growth of industry and the export of Indian chemicals. For

example, the Indian Chemical Manufacturers Association, represents a large number

of Indian companies, which produce and export a variety of chemicals, which have

legitimate commercial applications, but also can be used as precursors and

intermediates for production of chemical weapons.


Overview

Growing at an average rate of 12.5%, the Indian chemical industry offers a

wide spectrum of opportunities for the investors both from India and the world. The

significant market potential, coupled with the existing pool of human resources, and

the comprehensive variety of resources in the country make it’s profitable destination

in the new millennium. In the world production of chemicals, Indian industry stands

at 12th position. Major segments of Indian chemical industry include -

Pharmaceuticals & bulk drugs

In terms of volume and value, Indian pharmaceutical industry ranks 4th and

13th respectively. In 2004, industry was valued at over $6 billion, which is growing at

an annual rate of 8 – 9 %. The industry can be divided into bulk drugs segment and

formulations, and manufactures about 60,000 finished medicines and around 400 bulk

drugs that are used in formulations.

Agrochemicals

One of the most dynamic pesticide producers in the world, India is the second

largest manufacturer of agrochemicals in Asia. Out of 145 pesticides registered in the

country, 85 of a technical grade are locally manufactured. The country has established

itself as a global sourcing base for generic agrochemicals.

Petrochemicals and organic chemicals


The petrochemical sector that primarily comprises polymers, synthetic fibers,

fiber intermediates and plastic processing is growing at at an annual rate of 14%. At

the world level, India stands 9th in terms of polymer consumption and is expected to

be the 3rd largest consumer of polymers after USA and China by 2010. To meet the

growing domestic requirement, 9 global size ethylene crackers of 700 kt each would

need to be set up by 2011–2012, over and above the present capacity of 2.4 million

tons.

Dyes

The Indian dye industry is valued at around US$ 3 billion, with exports of

about US$ 1 billion. The per capita consumption is very low (50 gms) as compared to

average global consumption (400gms). The industry is highly fragmented with 50

players in organized sector and 900 in unorganized sector. (400 gms). The industry

has undergone tremendous over the years, starting as an intermediate manufacturing

industry to a full fledged industry with huge export potential. At present, India's share

of the dye output globally stands at 5%, with a manufacturing capacity of 1,50,000

tons per annum.

Specialty chemicals

Specialty chemicals comprise fine chemicals and performance chemicals. The

Indian fine chemical industry is in a growth phase with an estimated worth of US$

700 million. The industry primarily caters to the pharmaceutical industry. The Indian

specialty chemicals industry is valued at an approximated worth of US$ 3 billion.

Inorganic Chemicals

Characterized by high degree of fragmentation even across high volume

product areas, Indian inorganic chemicals industry account for less than 4.5 % of

global market. The sector comprises of production of chemicals, such as sulphuric

acid, phosphoric acid, titanium dioxide, carbon black and chloralkali industry, which

forms a major part of inorganic sector.

Indian Chemical Industry Exporter History


The chemical industry is one of the earliest domestic industries in India, contributing

considerably to both the industrial as well as economic growth of the country since it

achieved independence in 1947. The industry presently produces around 70,000 commercial

products, which range from toiletries and cosmetics, to plastics and pesticides. The wide and

diverse range of products can be broken down into several categories, which include

inorganic and organic (commodity) chemicals, plastics and petrochemicals, drugs and

pharmaceuticals, dyes and pigments, pesticides and agrochemicals, fine and specialty

chemicals, and fertilizers.With primary focus on modernization, the Govt. of India has taken

an active role in promoting the growth and development of Indian domestic chemical

industry.

Total US$30.59 Billion during 2005-2006 .

Contributes to 3% of GDP during 2005-2006.

One of the fastest growing sectors of Indian economy.

Chemical Industry in India is fragmented and dispersed - multi product and multi

faceted.

Chemicals sold directly to large customers and through distribution channels.

Distribution channels mostly consist of stockists and dealers spread all over India

addressing small segments and retail market.

Foreign Trade :-

India was a net importer of chemicals in early 1990s , but has now become a net

exporter due to reduction in Imports because of implementation of many large scale

petrochemical plants like Reliance etc. and also because of tremendous growth of exports in

sectors like bulk drugs and pharma, pesticides, dyes and intermediates.

Exports by the basic chemical sector in 1995-96 surpassed the target of Rs 6,742

crore by reaching a figure of Rs 7,979.30 crore and showing a massive growth of 24% over

the preceding year's figure of Rs 6,403.90 crore. During 1994-95 exports totaled Rs 6,403.90

crore against the target of Rs 5,504.60 crore, while in the preceding year shipments reached

Rs 4,904.40 crore against the target of Rs 4,584.00 crore. The drugs and pharmaceuticals and

the organic/inorganic/agro-chemicals contributed as much as 63% of total exports. This has

been a herculean task, which has been achieved by competing with big multinational

corporations of the world. Turnover for the year ended 1998-99 is close to Rs.15,000 crores.


The chemical industry comprises the companies that produce industrial chemicals. It

is central to modern world economy, converting raw materials (oil, natural gas, air, water,

metals, minerals) into more than 70,000 different products. Polymers and plastics, especially

polyethylene, polypropylene, polyvinyl chloride, polyethylene terephthalate, polystyrene and

polycarbonate comprise about 80% of the industry’s output worldwide. Chemicals are used

to make a wide variety of consumer goods, as well as thousands inputs to agriculture,

manufacturing, construction, and service industries. The chemical industry itself consumes

26 percent of its own output. Major industrial customers include rubber and plastic products,

textiles, apparel, petroleum refining, pulp and paper, and primary metals. Chemicals is nearly

a $2 trillion global enterprise, and the EU and U.S. chemical companies are the world's

largest producers. The largest corporate producers worldwide, with plants in numerous

countries, are BASF, Dow, Shell, Bayer, INEOS, ExxonMobil, DuPont, and Mitsubishi,

along with thousands of smaller firms. This article does not cite any references or sources. ...

Polypropylene lid of a Tic Tacs box, with a living hinge and the resin identification code

under its flap Micrograph of polypropylene Polypropylene or polypropene (PP) is a

thermoplastic polymer, made by the chemical industry and used in a wide variety of

applications, including food packaging, ropes, textiles, plastic parts... Polyethylene

terephthalate (aka PET, PETE or the obsolete PETP or PET-P) is a thermoplastic polymer

resin of the polyester family and is used in synthetic fibers; beverage, food and other liquid

containers; thermoforming applications; and engineering resins often in combination with

glass fiber. ... Polystyrene (IPA: ) is a polymer made from the monomer styrene, a liquid

hydrocarbon that is commercially manufactured from petroleum by the chemical industry. ...

Polycarbonates are a particular group of thermoplastic polyesters. ...

In the U.S. there are 170 major chemical companies. They operate internationally

with more than 2,800 facilities outside the U.S. and 1,700 foreign subsidiaries or affiliates

operating. The U.S. chemical output is $400 billion a year. The U.S. industry records large

trade surpluses and employs more than a million people in the United States alone. The

chemical industry is also the second largest consumer of energy in manufacturing and spends

over $5 billion annually on pollution abatement.

In Europe, especially Germany, the chemical, plastics and rubber sectors are among

the largest industrial sectors. Together they generate about 3.2 million jobs in more than


http://www.statemaster.com/encyclopedia/Polycarbonate

http://www.statemaster.com/encyclopedia/Polystyrene

http://www.statemaster.com/encyclopedia/Polyethylene-terephthalate

http://www.statemaster.com/encyclopedia/Polyvinyl-chloride

http://www.statemaster.com/encyclopedia/Polypropylene

http://www.statemaster.com/encyclopedia/Polyethylene

60,000 companies. Since 2000 the chemical sector alone has represented 2/3 of the entire

manufacturing trade surplus of the EU. The chemical sector accounts for 12% of the EU

manufacturing industry's added value.

The chemical industry has shown rapid growth for more than fifty years. The fastest

growing areas have been in the manufacture of synthetic organic polymers used as plastics,

fibres and elastomers. Historically and presently the chemical industry has been concentrated

in three areas of the world, Western Europe, North America and Japan (the Triad). The

European Community remains the largest producer area followed by the USA and Japan.

The traditional dominance of chemical production by the Triad countries is being

challenged by changes in feedstock availability and price, labour cost, energy cost,

differential rates of economic growth and environmental pressures. Instrumental in the

changing structure of the global chemical industry has been the growth in China, India,

Korea, the Middle East, South East Asia, Nigeria, Trinidad, Thailand, Brazil, Venezuela, and

Indonesia.



INTERNAL COMPONENT OF INDIAN ECONOMY

Chemical industry is an integral component of the Indian economy, which

contributes around 7 % of the Indian GDP. It touches our lives in several different

different ways. Whether it is thermoplastic furniture we use, or a synthetic garment

we wear, or a drug we take – we are inextricably associated to it. The industry is

integral to the development of agricultural and industrial development in India and

has key linkages with various other downstream, such as automotive, consumer

durables, engineering, food processing and more.

Globalization posses many challenges to the industry, which has

predominantly developed in a protected environment. With World Trade Organization

assuming an increasing role in global economics, there is an inevitable move towards

an inter-linked international economy. However, there have been cases where

particular segments of the industry, such as pharmaceuticals and biotechnology have

performed exceedingly well even at the world level.

During 2005-06, the industry contributed 17.6% of the manufacturing sector.

However the country continues to be a net importer in 2005-06, with exports of US$

5.95 billion and imports of US$7.92 billion. The worth of Indian chemicals industry

during 2005-06 was US$30.59 billion, which reflected a growth of 10.23% over the

previous year and a CAGR of 8.68% during the last 3 years.

Future Forecasts

A decade of economic reforms has resulted in major changes in the way the

Indian chemical manufacturers work and operate. Individual enterprises have realized

their strengths and weaknesses and are gearing up to face the new challenges. Success

stories in dyes and agrochemicals have boosted the confidence of Indian

manufacturers to take on global competition squarely. Some of the advantages of

Indian chemical industry include -


Due to its low cost infrastructure, the country has huge export potential.

According to a recent report, India's chemical exports have the potential to rise

US$ 300 billion by 2015. This defines an investment of US$ 50 billion in

chemical industry alone.

The country has the capacity for high value addition being close to Middle

East. This is a cheap and ample source for petrochemical feedstock.

In some categories of chemicals, India does have the advantage for exports

(dyes, pharmaceuticals and agrochemicals) by establishing strategic alliances

with countries like Russia. With the expertise and know-how available in the

country, there is a tremendous export potential in dyestuff and agrochemical

market.

Availability and abundance of raw materials for titanium dioxide and agro-

based products, such as castor oil provide an opportunity to yield significant

value addition. This, however, would require substituting their exports in raw

form by producing high value derivatives.

The major challenges are pursuit for feedstock and knowledge management.

The naphtha-based crackers that have been providing feedstock to the industry

traditionally, have now been replaced by new gas-based crackers. Along with

China, India pose a stiff competition to the Middle East due to the vibrant

exports and huge unexplored reserves of oil and gas. The Govt. of India is

acting as a facilitator by establishing LNG terminals and acquiring equity

interests in overseas proven oil reserves. This will fuel the fast growth in

chemical industry. The govt. is also engaged in the development and

formulation of a National Policy on Pharmaceuticals and mega-industrial

chemical estates.


INDIA GLYCOL LIMITED : COMPANY HISTORY

1983 - India Glycols Ltd was incorporated at New Delhi on 19 thNovembe as a public

limited company as u.p.glycols limited obtained the Certificate of Commencement of

Business on 3rd February; 1984.The Company was promoted by Vam Organic

Chemicals Ltd. The company manufactures mono-ethyleneglycol (MEG) , diethylene

glycol (DEG) and triethylene glycol (TEG).

- The company entered into a technical know-how agreement with `Scientific Design

Company Inc., USA (SD) for the supply of process know-how only for the

conversion of ethanol into MEG as the promoter VAM agreed to advise free of cost

on the conversion process of molasses into ethanol.

- The company also entered into an agreement with Toyo Engineering India Ltd., for

implementing the project within guaranteed cost and time limit.

1986 - The name of the Company was changed to `India Glycols Limited'

Effective from 4th September.

1988 - 70 shares subscribed for by the signatories to the Memorandum of

Association.244,99,930 shares then issued at par of which 84,69,930 shares to

promoters, directors, etc., and Vam Chemicals Ltd., and its wholly owned

subsidiaries and 25,00,000 shares to shareholders of Vam Organic Chemicals Ltd.,

Ramgang Fertilizers Ltd., and Hindustan Wires Ltd., were reserved and allotted. Out

of the remaining 135,30,000 shares, the following shares were reserved for

preferential allotment: (i)15,00,000 share to UTI, (ii) 7,50,000 shares to SBI Capital

Markets Ltd. (iii) 30,00,000 shares to NRIs on repatriation basis, (iv) 2,50,000 shares

to business associates, (v) 10,00,000 shares to farmers and rural investors and (vi)


12,25,000 shares to employees/workers of the company as also of the Vam Organic

Chemicals Ltd. (Except 12,01,100 shares of the employees quota all shares taken up.)

The balance 58,05,000 shares along with 12, 01,100 shares not taken up by

employees were offered to the public in July 1988.

- Additional 33,82,500 shares allotted to retain oversubscription (7,50,000 shares to

NRIs, 62,500 shares to business associates,8,12,500 shares to farmers and 17,57,500

shares to public).

1990 - The Company received approval for expanding the MEG capacity upto 60,000

MT per annum. The Company proposed to diversify into the field of Ethylene Oxide

(EO) derivatives and had received letter of intent for the manufacture of 1000 MT per

annum of EO derivatives.

1991 - Steps were initiated to undertake diversification programmed to manufacture

Ethylene Oxide condensate/derivatives. The Company undertook the expansion of

effluent treatment and Biogas generation facilities.

1992 - The Capacity of MEG was enhanced to 25,000 tones per annum.

1995 - The company had tied up with Sanyo Chemical Industrial Surfactants

Covering major industries like textiles, toiletries, pharmaceuticals, agrochemicals,

paper, lubricants etc.

- The Company also proposed to set up facilities for chlorosulphation to produce

other specialty chemicals to maintain better quality standards.

1996 - The Company was implementing cholorosulphation project.

2003 -The Board of Directors at their meeting held on December 4, 2003 have

approved the merger of wholly owned subsidiary company CDS International Ltd

with the company.


The Board of Directors at their meeting held on December 4, 2003 has approved the

merger of wholly owned subsidiary company CDS International Ltd with the

company. On Novembers a public limited company as `U.P. Glycols Limited' and

obtained the Certificate of Commencement of Business on 3rd February, 1984. The

company was promoted by Vam Organi Chemicals Ltd.The company manufactures

mono-ethylene glycol (MEG), diethylene glycol (DEG) and triethylene glycol (TEG).

SWOT ANALYSIS

Strength

IGL is uniquely positioned as a petrochemical manufacturer through the

organic route, and is probably the largest player in the world in its segment. Though

the gross block of the company is Rs9.7bn, its replacement cost is estimated to be

~Rs32bn. This along with technological know how, would act as a strong barrier for

entry, thereby offering competitive safety for the company. The Kashipur unit is

fully integrated one, thereby ensuring operational smoothness. The company is

altering its mix in favour of EO derivatives. This offers higher realisations with

stability in outlook and prices. Improving product range (180 at present) would also

enhance realisations and consequently better margins. IGL has the ability to switch

its feedstocks, between molasses, ethanol and sugarcane. Thus, it can procure

molasses or ethanol at the start of a season (Oct-Nov) and rationalise its raw material

costs. Its storage facility also enables it to manage inventories on a higher scale.

Weakness

IGL’s margins could face pressure if MEG prices continue to fall vis-a-vis

hikes in prices of molasses and ethanol. While IGL is integrating backwards to reduce

the price volatility in its raw materials, the same cannot be eliminated and hence

would continue to dog the operations of the company. Newer capacity expansion

being undertaken in the M. East (Saudi Arabia & Iran) has the potential to lower the

landed cost of imported MEG in India and to impact realisations. Currently,


POY/PSF industry accounts for ~70% of MEG consumption in India and ~35% of

IGL’s revenues. This imparts high sensitivity to an industry and any slowdown in that

sector has the potential to impact IGL’s earnings.

Opportunities

IGL has flexibility in using ethanol or molasses as its feedstock for MEG/EO

manufacturing, which can help optimise its raw material cost. By setting up co-

generation plants, IGL will be able to lower its power costs (12% of net sales in

FY08) to 8% of net sales in FY10. Expansions in the polyester industry (Indo Rama,

JBF, Reliance and Garden Mills) will ensure offtake of IGL’s incremental capacity.

IGL is diversifying its revenue stream through venturing into Nutraceuticals, CO2 and

Real Estate, which are expected to account for ~10% of revenues by FY10.

Threats

MEG capacity expansion in M. East may dampen IGL’s offtake. Additional

capacitiesmay impact global prices which will impose margin pressure. Also, any

changes in custom duties on MEG (7.5%) and swing in Rs/USD rates have the

potential to dampen realisations and margins. Currently the Reliance group, which is

the largest domestic manufacturer of MEG, consumes majority of its production in-

house. Any sharp scale up in its merchant sales can upset the business prospects of

IGL. After Shakumbari expansion, there would be another factor influencing the

costing structure of IGL namely sugarcane. We have drawn our estimates on cane

prices of Rs 125/qntl. Thus, any unfavourable change in the pricing or availability of

cane can substantially impair the earnings of the company . IGL is undertaking capex

of Rs4.9bn over the next 2 years. There is also a shutdown of 25-35 days envisaged at

its MEG facility. Any derailment or delay of the same could impact its earnings

substantially. Exports constitute ~14% of its revenues and any adverse movement in

exchange rate can depress margins.


In a scenario where petrochemical companies are experiencing supply shortage

and rise in prices of feedstocks, green route (Biomass) players have become

competitive. In this backdrop, its capacity expansion by 20% and foray into value

added products augurs well for IGL’s revenue and margins. Its recent acquisition of

Shakumbari has afforded italternatives (making sugar and/or ethanol), thereby

enabling it to capitalise on market conditions.

IGL is also setting up co-generation power plant in Shakumbari and Kashipur that

will reduce the power cost to <Rs 1perunit. Thus, we estimated power and Fuel cost

as a % of net sales to ease to ~8% in FY10 from 12% in FY08. Besides reducing the

cost, IGL is also focusing on high margin EO derivative business where prices are

more stable and competition minimal. We estimate this business to register a CAGR

of 19% from FY08-10 and attain a size of Rs8.5bn by FY10. The revenue flow from

other streams i.e. Nutraceuticals, CO2 plant, property lease and sugar will also help

augment by FY10. With inclusion of guar gum powder and industrial gases, revenues

from other streams will be ~10% of total revenues by FY10 (v/s 3% in FY08). In

FY10, we estimate net revenues of Rs17bn (CAGR 13% from FY08-10), OPM of

27% (+200bps from FY08) and net profits of Rs2.9bn (v/s Rs1.8bn inFY08).

- The company entered into a technical know-how agreement with

`Scientific Design Company Inc., USA (SD) for the supply of process know-how

only for the conversion of ethanol into MEG as the promoter VAM agreed to advise

free of cost on the convers process of molasses into ethanol.

- The company also entered into an

agreement with Toyo Engineering India

Ltd., for implementing the project within

guaranteed cost and time limit.


First and only company in the world to produce Ethylene Oxide (EO) / Mono

Ethylene Glycol (MEG) from renewable agro route based on molasses, since 1989.

Leading manufacturers of Glycols, Ethoxylates, Performance Chemicals, Glycol

Ethers & Acetates, Guar Gum and Potable Alcohol. Completely integrated state -

of - the - art manufacturing process with emphasis Son superior quality by deploying

internationally proven technologies, innovative R&D and customized approach.

Largest Ethoxylate, Glycol Ether producer and thus leader in Ethylene Oxide

Derivatives/Surfactant business in India.

Global player meeting international specifications and norms, exporting to

South East Asia, Middle East, Europe, Australia and USA.

Catering to more than 1,000 customers in various end-use industries such as

Textile, Agrochemical, Oil & Gas, Personal Care, Pharmaceuticals, Brake

Fluids, Detergent, Emulsion Polymerization & paints etc.

Offer customer specific products to meet their performance / technical

requirements.

Customer base includes large MNCs, Public Sector Undertakings and large as

well as medium & small Indian organizations.


QUALITY THROUGH ADVANCED TECHNOLOGY

India Glycol ltd is one of the leading manufactures of glycol, ethoxylates and

specialty chemicals. Our continued emphasis on superior quality through the latest

technologies available worldwide, makes us a pioneer in our field. Our belief in

providing the desired products with the help of the best technology is in our

manufacturing facilities.

Our state-of-the-art glycols manufacturing plant at Kashipur, Uttar Pradesh has

the distinction of being the only one in the world to have commercialized the

production of ethylene oxide from molasses, a renewable resource. This plant was

commissioned in 1988, in technical collaboration with M/s scientific design Inc,

U.S.A.to manufacture glycols. In 1995, we diversified into the production of high

purity ethylene oxide {EO}, once again adopting the scientific design technology.

20,000 MTPA production capacity deploying the latest 2nd generation loop

reactor from PRESSINDUSTRIA Italy for minimum free EO and Dioxane

content.

State-of-the-art computer controlled system from ROSEMOUNT FISCHER,

U.S.A. for consistent quality.

Strategic alliance with SANYO CHEMICAL INDUSTRIES, Japan for

specialty chemicals.

We have the largest ethoxylation facility in India, using the 2nd generation

loop reactor technology from Pressindustria, Italy. The vapour-vapour phase reaction

of this technology ensures minimum residence time of unreacted EO and faster

reaction late. This result in ethoxylates of high purity, low colour and odour, low

aldehyde, minimum free EO and dioxane content thus eliminating any interference in

subsequent applications.


In a major leap forward, we tied up with Sanyo Chemical Industries, Japan , to

set up a state-of-the-art 10,000 MTPA specialty Chemicals Plant to introduce a wide

range of products and meet the diversified needs of various end use industries.

PRODUCTS PROFILE :

MEG / DEG / TEG

We manufacture MEG / DEG / TEG in state-of-the-art plant in technical

collaboration with Scientific Design Inc., USA.

Supplying to major Polyester / Chemical customers by meeting their stringent

specifications.

MONOETHYLENE GLYCOL (MEG) is a colorless, odourless, non-volatile

liquid. It is completely miscible in water and many organic solvents.

DI-ETHYLENE GLYCOL (DEG) is a stable, high boiling, odourless,

hygroscopic liquid completely miscible in water.

ALKYL PHENOL ETHOXYLATES

Manufactured in state-of-the-art second generation 'PRESSINDUSTRIA' loop

reactor which is currently the largest alkoxylation facility in India.

The plant is operated through a fully automated DCS system, which ensures

consistent quality.

Internationally proven technology with high purity, low colour & odour.

Large capacities to meet bulk requirements.

They are excellent Oil/Water soluble detergents, emulsifiers/ co-emulsifiers,

wetting / cleaning & dispersing agents, intermediate for sulphation and find

application in various industries such as Textile, Detergent, Agrochemical, and

Emulsion Polymerization & Paints.


Wide range based on Nonyl Phenol, Octyl Phenol, Card Phenol & Styrenated

Phenol under the brand name of ALPHOX series.

Product Range: Nonyl Phenol Ethoxylates (4 to 30 moles), Octyl Phenol

Ethoxylates (10, 20 moles etc), Styrenated Phenol Ethoxylates (20 Moles etc.),

Card Phenol Ethoxylates (5 to 30 moles).

We can tailor make specific moles & products as per customer requirements.

POLYETHYLENE GLYCOLS




consistent quality.

Internationally proven technology with high purity, low colour & odour

meeting Indian, International Pharmacopea, IP / USP / NF specifications.


Products are essentially non-toxic, stable & versatile solvents find various

applications:

Pharmaceuticals - as bases for ointments & suppositories, liquid preparation &

tablet manufacturing.

Cosmetic - aids in soap production, fixative for perfume oils in deodorant,

evaporation retarders in nail varnish, pre or after shave lotions.

o Oral Care - adjust consistency in tooth paste formulation. o Automotive - in manufacturing of Brake Fluids. o Textile o Paints & printing inks o Resins & plastics o Ceramics


Wide range of products (PEG-200 to 4000) under brand name of POLYMEG

series.


EO / PO COPOLYMERS




consistent quality.


meeting Indian, International standards.


They find application mainly in anti-foam formulations, as emulsifier in water

treatment, paint & oil field chemicals.

Product Range : EO-PO Co-polymers under brand name of EPOXEL series.

We can tailor make specific moles & products as per customer requirements

FATTY ALCOHOL ETHOXYLATES




consistent quality.




Fatty Alcohol Ethoxylates mainly find application as cleaning & scouring

agents, detergents and emulsifying in textile and other industries.

Tridecyl Alcohol Ethoxylates : 3 to 10 moles under brand name of IGSURF

series.

Lauryl Alcohol Ethoxylates are used as a major raw material for manufacture

of Sodium Lauryl Ether Sulphate (SLES) for shampoo and detergent.

Ceto Stearyl Alcohol Ethoxylates find application as an emulsifier in Pharma

& Cosmetic applications such as ointments and creams.

Product Range : Lauryl Alcohol Ethoxylates - 2.0 to 11 moles under brand

name of LARYDET series and Ceto Stearyl Alcohol Ethoxylates - 10, 20

moles under brand name of CETODET series.


FATTY ACID ETHOXYLATES




consistent quality.



Fatty Acid Ethoxylates such as Stearic Acid, Lauric Acid etc. find application

mainly in textile formulation and manufacture of spin finishes.

Product Range : Stearic Acid Ethoxylates, Lauric Fatty Acid Ethoxylates,

Coco Fatty Acid Ethoxylates, under brand name of STEXEL series.



FATTY AMINE ETHOXYLATES




consistent quality.



Fatty Amine Ethoxylates based on coco-amine, lauryl, oleyl amines etc. find

major application as dye levelling, wetting agents in textile formulations &

detergents.

They are also used an emulsifier in pesticide formulations.

Product Range : Oleyl Amine Ethoxylates, Coco Amine Ethoxylates, under

brand name of AMINOX series.


NATURAL OIL ETHOXYLATES




consistent quality.


meeting Indian, International Pharmacopea, IP / USP / NF specifications.



Based on Castor, Soya and Groundnut, Hydrogenated Castor oil, these

products find application mainly as emulsifier for agro & textile formulations,

leather, paints etc.

Product Range : Castor Oil Ethoxylates - 20 to 55 moles under brand name of

CASTROX series.


OTHER ETHOXYLATES




consistent quality.



Product Range : Sorbiton Ester Ethoxylates under brand name of SORBOX

series, Tri-decyl Alcohol Ethoxylates under brand name of IGSURF series.


GLYCOL ETHERS

Manufactured with know-how from M/s Sulzer Chemtech, Switzerland, which

is the largest Glycol Ether Plant in India and the only continuous process

Glycol Ether plant in India ensuring consistent quality.

Meeting stringent international specifications of markets in Europe, South East

Asia, Middle East.


Our focus is to manufacture Ethyl Glycol Ethers which finds application in

Paint & Coating, automotive brake fluid industry.

We can manfacture other grades of Glycol Ethers such as Methyl Glycol

Ethers, Butyl Glycol Ethers, Phenoxy Ethanol, which also find application in

various industries such as anti-foam agent, perfumery, paints & coating etc.

Wide range under brand name of IGSOL and IGTOL series.

GLYCOL ETHER ACETATES




Our Ethyl Glycol Ether Acetates meets the international specifications which

finds application mainly in paint & coating industry.

Wide range under brand name of IGACE series.

Other Glycol Ether Acetates can also be considered and made as per customer

requirement.

BRAKE FLUIDS & ANTIFREEZE COOLANT

Brake Fluids




We manufacture both DOT-3 and DOT-4 grades of brake fluid as per

international specifications and approved by ARAI, Pune, a leading

automobile research institute in India.


Product Range : DOT-3, DOT-4 brake fluids under brand name of IGDOT

series and components for brake fluids such as PEGs, DEG, Higher Glycol

Ethers are also available.

Antifreeze Coolant

We manufacture Antifreeze Coolant in state-of-the-art plant.

Supplying to major Oil Companies / Ministry of Defence by meeting their

stringent specifications

Ennature Biopharma is the new natural products division of India Glycols

Limited and is in the business of manufacturing natural active pharmaceutical

ingredients (API’s), standardized botanical extracts and spice extracts for the

beverage, dietary supplement, functional foods, pharmaceutical and cosmeceutical

industries. We are using state of the art, toxic-free, high selectivity super critical fluid

extraction technology (SCFE) to produce superior quality extracts. Our manufacturing

facilities are in the process of being cGMP, HACCP and Kosher certified.

We have a strategic advantage of being located in Dehradun, which is an

extremely favorable agro-climatic zone for herbal and plant cultivation in India. Also,

we have a strong hold over raw material supply through our own cultivation in the

foothills of the Himalayas and contract cultivation with farmers in the region. This

assures us availability of a variety of desired raw materials at competitive prices.

In addition, we have a professionally managed research team to undertake

large scale research and development of plant based secondary metabolite products,

nutraceuticals, phytopharmaceuticals (active pharmaceutical ingredients- API’s) and

their intermediaries along with standardized herbal extracts for the global market.

We aim to achieve the highest levels of customer satisfaction by supplying a

wide range of high quality, new and value added ingredients. We will be commencing

production in May


Some of the Products those generate revenue in Global Market


CHEMICALS PERFORMANCE IN VARIOUS INDUSTRIES

OIL & GAS

Wide range of additives for oil exploration and refining.

EO/PO blocks co-polymers, high molecular weight resins and polyamine ethoxylates for crude oil demulsification.

Environment friendly, water soluble products for oil spill control. Pour point depressant to improve flow of oil at lower temperatures. Glycol Ethers are used during oil drilling. IGL offers Guar Gum products, which are used in deep oil well drilling,

enhanced oil recovery, plugging holes & pour point depressants.

IGL's Product Range for OIL & GAS Industry

GLYCOLS

TRI ETHYLENE GLYCOLS (TEG)

OIL & GAS

GLYCOL ETHERS & ACETATES

ETHYLENE GLYCOL MONO BUTYL ETHER

OIL & GAS


OIL & GAS PRODUCTION

PERFORMANCE CHEMICALS

OIL & GAS DRILLING OIL & GAS

PRODUCTION

REFINING LUBRICANT

SHALE STABILISER

SPOTTING FLUID

OIL SOLUBLE

DEMULSIFIER

WATER SOLUBLE

DEMULSIFIER

DESALTER /

DEMULSIFER

CORROSION

INHIBITOR

POUR POINT

DEPRESSANT (PPD)

FLOW IMPROVER

FOR CRUDE OIL

NON EMULSIFIER

DEOILER


GUAR GUM

INDUSTRY APPLICATION

OIL & GAS DEEP OIL WELL DRILLING

ENHANCED OIL RECOVERY

PLUGGING HOLES & POUR POINT DEPRESSANTS

Performance Chemicals For OIL & GAS Industry

Technical know-how from M/s Sanyo Chemical Industries, Japan.

Wide range of additives for oil exploration and refining.

EO/PO block co-polymers, high molecular weight resins and polyamine

ethoxylates for crude oil demulsification.

Environment friendly, water soluble products for oil spill control.

Pour point depressant to improve flow of oil at lower temperatures

AGROCHEMICALS

IGL offers a unique blend of IGSURF Series for EC formulations designed for

application in multiple toxicants.

Highly stable and free flowing broad spectrum emulsifiers.

Wetting and dispersing agents for wettable powders and suspension

concentrates.



concentrates.

Range of eco-friendly surfactants for new generation formulations.

IGL offers Guar Gum products which are used in tobacco fines recovery.

GLYCOL

DI ETHYLENE GLYCOLS (DEG)

AGROCHEMICALS

NEAT ETHOXYLATES & PEGs

Alkyl phenol ethoxylates Fatty alcohol ethoxylates Fatty

amine ethoxy lates

Natural oil ethoxylates

Alkyl phenol ethoxylates

Styrenated phenol ethoxylates

Lauryl alcohol ethoxylates

Castor oil ethoxylates

Soya oil ethoxylates

Emulsifying

Wetting Performance Chemicals For AGROCHEMICAL Industry


IGL offers a unique blend of IGSURF Series for EC formulations designed for

application in multiple toxicants.

Highly stable and free flowing broad spectrum emulsifiers.


concentrates.


Range of eco-friendly surfactants for new generation formulations

TEXTILE

Comprehensive range of products required at various stages of yarn & fabric

processing based on

International technology.

A complete range of glycols; MEG, DEG, TEG and PEG's of molecular

weight ranging from 200-4000.

Emulsifier, wetting agents, dispersing agents, leveling and lubricating agents,

with low PEG content for better surfactancy.

IGSURF series of specialty chemicals developed with know-how from M/s

Sanyo Chemical Industries, Japan. Low foaming mercerizing agents, unique

blends of cationic and nonionic softeners and a range of dye leveling agents

for improved fastness of dyed fabrics.

IGL's Product Range for TEXTILE Industry

GLYCOLS

MONO ETHYLENE GLYCOLS (MEG)

Polyester Oriented Yarn (POY)

Polyster Staple Fibre (PSF)


POLYE

THY

LENE

GLYCO

ALKYL

PHENOL

ETHOXYL

ATES

FATTY

ALCOHOL

ETHOXYLATES

FATTY

ACID

ETHOXYL

ATES

FATTY

AMINE

ETHOXYL

ATES

NATURAL

OIL

ETHOXYLA

TES


LS

(PEGs)

LAURYL

ALCOHOL

ETHOXYL

ATES

TDA

ETHO

XY

LATE

S

CAST

OR

OIL

ETHO

XY

LATE

S

SOYA

OIL

ETHO

XY

LATE

S

LUBRICA

TING

ADDITIV

ES

WETTING

CLEANIN

G

DYE

LEVELLI

NG

SCOURIN

G

EMULSIF

YING

PRINTING

&

DYEING

ANTISTA

TIC


Ethylene Glycol Mono Ethyl Ether

Printing & Dyeing

Dye Manufacturing


Performance Chemicals For TEXTILE Industry


Emulsifier, wetting agents, dispersing agents, levelling and lubricating agents,

with low PEG content for better surfactancy.

Low foaming mercerizing agents, unique blends of cationic and nonionic

softners and a range of dye levelling agents for improved fastness of dyed

fabrics.

Spin finish oil for polyester industry.


PERSONAL CARE

Nontoxic, free of carcinogenic impurities, polyethylene glycols with minimum

free EO and dioxane content.

Water white SLES with low salt and dioxane content.

Ingredients for manufacture of shampoos, which are skin friendly.

IGL offers Guar Gum products duly approved under U.S. Federal Register as

Generally Recommended As Safe - GRAS Category for Food, Feed & Pharma

applications. These products are used in toothpaste, cosmetics, shampoos,

hair dyes etc.

IGL's Product Range for PERSONAL CARE Industry


FATTY ALCOHOL

ETHOXYLATES

NATURAL OIL

ETHOXYLATES

POLYETHYLE

NE GLYCOLS

(PEGs)

LAURYL

ALCOHOL

ETHOXYLAT

ES

CETO

STEARYL

ALCOHOL

ETHOXYLAT

ES

HYDROGENAT

ED CASTOR

OIL

ETHOXYLATES

SOLUBILISE

R


CREAM

BASE

FOAMING

TAR

REMOVAL


PERSONAL CARE SHAMPOO TOOTHPASTE

SODIUM LAURYL ETHER

SULPHATE

SODIUM LAURYL SULPHATE

SHAMPOO BASE

GUAR GUM

APPLICATION

TOOTH PASTE & COSMETICS

SHAMPOOS

HAIR DYES

Performance Chemicals For PERSONAL CARE Industry



Water white SLES with low salt and dioxane content.

Ingredients for manufacture of shampoos, which are skin friendly

PHARMACEUTICALS

IGL offers a variety of nonionic ethylene oxide condensates that are stable

in mild acids and electrolytes.

Nontoxic, free of carcinogenic impurities, polyethylene glycols with

minimum free EO and dioxane content which meets the stringent

pharmacopia specifications such as IP / USP / BP / NF.

Products used mainly in manufacture of ointments, tablets, syrups, etc in the

pharmaceuticals industry.

IGL offers Guar Gum products duly approved under U.S. Federal Register

as Generally Recommended As Safe - GRAS Category for Food, Feed &

Pharma applications. These products are used in tablet binding, viscosifying

syrups etc.

Our Extra Neutral Alcohol is used for manufacture of bulk drugs and formulations.

IGL's Product Range for PHARMACEUTICALS Industry


Polyethylene

glycols (pegs)

Natural oil ethoxylates Fatty acid ester

of sorbitan

ethoxylatesHydrogenated castor

oil ethoxylates

OINTMENT BASE

SYRUP BSE


SOLVENT FOR

INJECTION

SOLUBILISER


Glycol Ethers

Ethylene Glycol Mono

Ethyl Ether

Di Ethylene Glycol Mono

Ethyl Ether

Pharma


GUAR GUM

APPLICATION

TABLET BINDING

VISCOSIFYING SYRUPS

DISTINTEGRATING AIDS

SUSPENDING AGENTS

POTABLE ALCOHOL

Extra Neutral Alcohol

Reaction Aid

MINING

IGL has tailor-made flotation agents meeting customer specific requirements.

We develop specialty products for flotation of iron ores, cleaning of calcite and

collectors for different types of silicate flotation

IGL is the leading manufacturer of Emulsifier for Emulsion Explosives.

IGL offers Guar Gum products, which are used in coal mining, concentration of ores,

IGL's Product Range for MINING Industry

GLYCOLS

MONO ETHYLENE GLYCOLS (MEG)


MINING



MINING BENEFICIATION EXPLOSIVE

FLOATATION / WASHING AGENT

EMULSIFIER

GUAR GUM

APPLICATION

CONCENTRATION OF ORES

COAL MINING & COAL SLURRY - FLOWING AID

FLOCCULATION & BETTER RECOVERY

STICK EXPLOSIVES

BLASTIC SLURRIES

WATER CONTROL & GELLING AGENT

Performance Chemicals For MINING Industry


IGL has tailor-made flotation agents meeting customer specific requirements.

We develop speciality products for flotation of iron ores, cleaning of calcite and

collectors for different types of silicate flotation stick explosives etc.

HEALTH CARE & FOOD PROCESSING


For HEALTH CARE & FOOD PROCESSING industry, IGL offer GUAR GUM,

which is globally used in Dairy & Frozen Foods, Bakery, Canned Foods, Sauces,

Beverages and various health care recipes.

IGL has State-of-the-art facility to manufacture 10,000 MTPA of Guar Products

such as Guar, Treated & Pulverized Guar Gum Powder and Derivatised Guar, set

up as an Export-Oriented-Unit.

Complete process of Guar Gum is operated by a Fully Automatic Plant and

packaging of the same is controlled in most ultramodern plant untouched by hand.

Capability to produce various viscosity ranges and different mesh sizes as per

customer's requirement.

Exports to entire globe under the brand name of IGGUAR. Approved under U.S.

Federal Register as Generally Recommended As Safe - GRAS Category for Food,

Feed & Pharma applications.

IGL's Product Range for HEALTH CARE & FOOD PROCESSING Industry

GUAR GUM


Health Care Slimming Regimen

Special Dietetics & Diabetic Diets


Soluble Fibre and Various Clinical

Nutrition Recipes

Food Processing Dairy & Frozen Foods

Bakery

Canned Foods

Sauces & Salad Dressings

Beverages & Instant Mixes


AUTOMOTIVE

For AUTOMOTIVE Industry, IGL offers quality BRAKE FLUIDS and

ANTIFREEZE COOLANT.

Brake Fluids

IGL manufacture both DOT-3 and DOT-4 grades of brake fluid with know-how

from M/s Sulzer Chemtech, Switzerland, which are the largest Glycol Ether Plant in

India and the only continuous process Glycol Ether plant in India ensuring

consistent quality.

Our brake fluids meet international specifications and approved by ARAI, Pune, a

leading automobile research institute in India.

Product Range: DOT-3, DOT-4 brake fluids under brand name of IGDOT series

and components for brake fluids such as PEGs, DEG, and Higher Glycol Ethers are

also available.

Antifreeze Coolant

We manufacture Antifreeze Coolant in state-of-the-art plant. Supplying to major

Oil Companies / Ministry of Defence by meeting their stringent specifications

IGL's Product Range for AUTOMOTIVE Industry

GLYCOL

MONO ETHYLENE GLYCOLS

(MEG)

DI ETHYLENE

GLYCOLS (DEG)

AUTOMOTIVE

ANTI FREEZE


COOLANT

BRAKE FLUID

FIBRE GLASS


POLYETHYLENE GLYCOLS (PEGs)

AUTOMOTIVE

BRAKE FLUID


GLYCOL ETHERS

BRAKE FLUIDS

AUTOMOTIVE DI

ETHYLENE

GLYCOL

MONO

ETHYL

ETHER

TRI

ETHYLENE

GLYCOL

MONO

ETHYL

ETHER

DI

ETHYLENE

GLYCOL

MONO

BUTYL

ETHER

TRI

ETHYLENE

GLYCOL

MONO

BUTYL

ETHER

DOT-3

BRAKE

FLUID

DOT-4

BRAKE

FLUID

AUTOMOTIVE

HYDRAULIC

BRAKE FLUID

DETERGENTS


Cost-effective blends for synergistic effect and enhanced performance of

detergents when used in combination with anionics such as LABSA.

Eco-friendly products for improved fabric care, skin care and higher hard

water tolerance.

PEGs for manufacturing of Soaps.

Specially formulated products can be used in liquid & powder detergents as

also detergent cakes.

SLES for liquid Detergents.


IGL's Product Range for DETERGENT Industry

NEAT ETHOXYLATES & Pegs

FATTY ALCOHOL ETHOXYLATES

LAURYL ALCOHOL ETHOXYLATES

WASHING


DETERGENT / CLEANING

SODIUM LAURYL ETHER

SULPHATE

SODIUM LAURYL SULPHATE

NONIONIC & ANIONIC BLEND

Performance Chemicals For DETERGENT Industry


Cost-effective blends for synergistic effect and enhanced performance of

detergents when used in combination with anionics such as LABSA.

Eco-friendly products for improved fabric care, skin care and higher hard

water tolerance.

Specially formulated products can be used in liquid & powder detergents as

also detergent cakes.


SLES for liquid Detergents.

Paper

Wide range of surfactants for application in pulp and paper industry.

Wide range of defoamers for applications such as:

o Pulping

o Brown stock washing

o Paper machine

o Coating

o Effluent treatment plant

Various tailor made surfactants such as :-

o Felt washing and conditioning

o De-inking chemicals

o Cooking aid

o Any other surfactants as per customer's specific requirements.

Strength additives

IGL offers guar gum products which are used in reduction of fines, increasing

strength & burst factor, improving rattling etc.

IGL's Product Range for PAPER Industry


FATTY

ALCOHOL

ETHOXYLATES

POLYETHYLENE

GLYCOLS (PEGs)

ALKYL

PHENOL

ETHOXYLATES

LAURYL

ALCOHOL

ETHOXYLATES

PAPER


ANTI CURL AGENT

SOFTENING AGENT

RESIN REMOVAL

FROM WOOD PULP

DE-INKING



Paper Flotation Washing Stock Paper

machine

Press

felts

Machine

wire

Effluent

treatment

plant

Pulping Coating Bleach

ing

De-inking

chemicals

Defoamer

Retention

drainage aid

Felt cleaner

Wire cleaning

Strength

additive

Cooking aid

Peroxide

stabiliser

GUAR GUM


PAPER WET & DRY END ADDITIVES

REDUCTION OF FINES

INCREASING STRENGTH & BURST FACTOR

IMPROVING RATTLING


Performance Chemicals For PAPER Industry


Wide range of surfactants for application in pulp and paper industry.

Wide range of defoamers for applications such as:

o Pulping

o Brown stock washing

o Paper machine

o Coating

o Effluent Treatment Plant

Various tailor made surfactants such as :-

o Felt washing and conditioning

o De-inking chemicals

o Cooking aid

o Any other surfactants as per customer's specific requirements.

Strength Additives

Paints & Emulsion Polymerisation

Wide spectrum of surfactants for application in paint and emulsion industries.

Excellent emulsifying and wetting properties in adhesive manufacturing.

Comprehensive range for paints and emulsion polymerisation industry.

Emulsifiers to achieve fine dispersion of polymers and desired consistency in

emulsion polymerisation.

Glycol Ethers & Acetates acts as excellent solubiliser ensuring uniform

application & drying of paints.


IGL offers Guar Gum products which used in adhesives glue & paints.

IGL's Product Range for PAINTS & EMULSION POLYMERISATION Industry

GLYCOLS

MONO ETHYLENE

GLYCOLS (MEG)DI ETHYLENE

GLYCOLS (DEG)

PAINTS & EMULSION

POLYMERISATION



EO/PO BLOCK CO-

POLYMERS

GROUNDNUT OIL

ETHOXYLATES

DEFOAMING

EMULSIFYING


GLYCOL ETHERS GLYCOL ETHER ACETATES

ETHYLENE

GLYCOL

MONO ETHYL

ETHER

ETHYLENE

GLYCOL

MONO BUTYL

ETHER

ETHYLENE

GLYCOL

MONO ETHYL

ETHER

ACETATE

DI ETHYLENE

GLYCOL

MONO ETHYL

ETHER

ACETATE

SOLVENT


PAINTS & EMULSION

POLYMERISATION

PAINT

MFR.

EMULSION PAINT

MFR.

ANIONIC EMULSIFIER

NONIONIC EMULSIFIER

QUASI ANIONIC EMULSIFIER


GUAR GUM

APPLICATION

ADHESIVES GLUE & PAINTS

Performance Chemicals For PAINT Industry


Excellent emulsifying and wetting properties in adhesive manufacturing.

Comprehensive range for paints and emulsion polymerisation industry.

Emulsifiers to achieve fine dispersion of polymers and desired consistency in

emulsion polymerization

Some Other Industries


Guar Gum

State-of-the-art facility to manufacture 10,000 mtpa of guar products such as

guar, treated & pulverized guar gum powder and derivatised guar, set up as an

export-oriented-unit.

Complete process is operated by a fully automatic plant and packaging of the

same is controlled in most ultramodern plant untouched by hand.

Catering mainly to food, feed & pharma, textile, printing, industries etc. And

specialty products in the area of oil & gas and lubricant.

Capability to produce various viscosities ranges and different mesh sizes as

per customer's requirement.

Exports to entire globe under the brand name of igguar.

Approved under U.S. federal register as generally recommended as safe - gras

category for food, feed & pharma applications.

Extra Nutral Alcohol

We have one of the largest distilleries in Asia for manufacture of ena with

capacity of 20 million liters per annum.

Ena plant is based on the principles of multi pressure-cascading techniques &

the process control is by digital distributed control system.

Plant is designed & supplied by alfa Laval (India) ltd.

Ena is used as reaction aid in pharmaceutical and as volatile carriers in flavor &

fragrances.

Imfl / country liquor


We have established separate facilities for blending & bottling of India made foreign

liquor (imfl) & country liquor.

IGL's Product Range for OTHER Industry


GLYCOLS

MONO ETHYLENE

GLYCOLS (MEG)

DI ETHYLENE

GLYCOLS (DEG)

PACKAGING

- POLYESTER FILMS

- PET CHIPS FOR BOTTLES

FURNITURE / HOUSEHOLD

UNSATURATED RESIN

CAPACITORS

P.U. ADHESIVES

POLY ETHYLENE

GLYCOLS

Performance Chemicals For OTHER Industries


IGL is leading manufacturer of defoamers & anti-caking agent to the fertiliser

industry.

IGL have developed tailor-made grinding aids for Cement Manufacturing

FERTILISER:


IGL is leading manufacturer of defoamers & anti-caking agent to the fertiliser

industry.

CEMENT :

IGL have developed tailor-made grinding aids for Cement Manufacturing.

CERAMIC :

IGL has developed Speciality Chemicals for various ceramic applications such as

decorative tiles printing.

RUBBER :

IGL has developed products for various rubber compounding applications inclusive of

antitacking, moisturisation and airtrapping.

IGL offers Guar Gum products, which are used in various applications such as air

freshner gels, agarbatties & incense sticks, photography, ceramic, construction

industry, synthetic resins & pet food

Our Extra Neutral Alcohol is used as volatile carriers in Flavour & Fragrances.


RAW MATERIAL LIST COME FROM THE SUPPLIERS

2-ETHYL HEXANOL ACETIC ACID ACID SLURRY

ACRYLIC ACID AMMONIUM SULPHATE AMMONIA

SOLUTION

AMMONIUM CHLORIDE BEHNYL ALCOHOL BORAX

BUTYL ACRYLATE BUTYLATED HYDROXY

TOLUNE

CITIRIC ACID

BENZOTRIAZOLE CALCIUM HYDROXIDE CASTOR OIL

CARD PHENOL CARD PHENOL RESIN COCO AMINE

CETO STERYL ALCOHOL CHLORO SULPHONIC ACID DICYNO DI AMIDE

CODEX-4503 DIMETHYL SULPHATE DIETHYLENE

TRIAMINE PENTA

ACETIC ACID

DIETHYLENE TRI AMINE DIPENTENE FORMIC ACID

EDTA FORMALDEHYDE HYDROGEN PER

OXIDE

GLYCEROL/GYLCERINE GROUND NUT OIL HYPO PHOSPHROUS

ACID


HYDROGENATED CASTOR

OIL

HYFLO SUPERCELL LAURYL

ALCOHOL2.0%HC

ISO PROPYL ALCOHOL LAURYL ALCOHOL LOW HC METHYL

METHACRYLATE

MALEIC ANHYDRIDE METHANOL MONO SODIUM

PHOSPHATE

MIXED XYLENE MONO ETHANOL AMINE OCTYLE PHENOL

NONYL PHENOL NORMAL BUTANOL/ IBA PHENOL

OLEIC ACID OLEYL CETYL ALCOHOL PROPYLENE OXIDE

PHOSPHOROUS PENTOXIDE PINE OIL POTASIUM PER

FOSULPHATE

POLY ALKYL SILOXANE NAPHTHALENE

FORMALDEHYDE

CONCENSATE

PRECIPATED SILICA

POTTASIUM HYDROXIDE PPG 2000 RED DYE (1032

OILRED OB EXTRA

PTSA RICE BRAN FATTY ACID SODIUM HYPO

CHLORITE

SODIUM BI CARBONATE SODIUM CARBONATE SOLVENT CIX /

REREMAX/H.A.

SODIUM META BI SODIUM SULPHITE STEARIC


SUSULPHITE ACID(INDIGI)

SORBITOL SOYABEEN OIL(REFINED) SODIUM NITRITE

STYRENE SODIUM THIOSULPHATE TRI DECYL

ALCOHOL

SULPHAMIC ACID THIO UREA TOLUNE

TRI ETHYL AMINE (TEA) TRI ETHANOL AMINE DM SILICONE OIL

350 CTSK

WHITE MINRAL OIL TURKEY RED OIL STANSURF (CABS

55%)


CUSTOMER-ORIENTED R&D SUPPORT

In performance chemicals, the optimization of applications needs continuous

development efforts. The trend towards higher production capacities and increasing

quality consciousness has to be supported by better performing chemicals. This can

be achieved only through a regular interaction with the customer.

We believe that every customer represents a personalized requirement and

need, which is why, our r&d activity is customer driven, emphasing on customer

specifications and standards.

Our state-of-the-art R&D centre is equipped with sophisticated analytical

instruments like ftir, hplc, tensiometers and analyzers to test performance for a wide

range of applications. This helps our R&D team in developing a customized product

to assist our client in achieving high quality standards. The structure activity

correlation data generated by our scientists’ further help in developing new cost

effective formulations. Having developed the product; our r&d keeps close contact

with the customer’s technical team and supports their need to improve the product

over a period of time. In addition, a continuous technical assistance in product

application and performance is provided so that the customer can have full

advantage of our quality.


VALUE ADDITION AT EVERY STEP

Quality performance and cost effectiveness of chemicals are the factors that

have a direct bearing on our client’s objective to produce a quality product of a

competitive price.

Our endeavor is to provide technical advantage to our client’s products,

assist him in achieving set standards and win a confident position in the market in

terms of reliability, quality and commitment.

Our every activity is directed towards customer satisfaction and no effort is

spared in ensuring that our client gets the benefit of the best technology. We were the

first company to acquire the sophisticated vapor phased reaction technology of 2nd

generation loop reactor from pressindustria, Italy, high purity minimum free EO and

dioxane content in surfactants, batch to batch consistency, result in high quality end

product.


Continuous emphasis is laid on innovative and R&D that develops effective

proprietary blends, to meet the requirement of performance and cost benefits. Low

batch cycle time, high manufacturing capacity, bulk storage tanks for raw materials

and finished products homogeneity of products and reliability of supplies.

We believe in building relationships with our clients. We achieve this by first

identifying constraints being faced by the customer in surfactant application and then,

by providing specific solutions and recommending options to achieve desired end

results.


REACHING THE CUSTOMER

Our extensive marketing network has been designed to facilitate a better

penetration. With 5 branch offices, 4 sales centers and 30 distributors, we service over

25 major industrial locations, across the country. Our marketing aim is to forget a

mutually beneficial long term association with our clients. It is our endeavor to

identify needs and respond to them in minimum possible time, keep in constant touch

with every customer, provide information on surfactant applications and product

development.

We recognize the importance of our supply chain operations and understand

that a customer, who experiences efficient operations, will always remain loyal to our

products. We carry sufficient stocks of all our products to ensure prompt delivery and

consistency in product quality, thereby relieving the customer of building high

inventory at his end.

Supporting the marketing team is a group of industry managers representing

each end user industry. With their technical expertise they act as a conduit for

information on prevailing trends, product innovation, new formulations and effective

usage to the customer.

This proactive marketing approach has resulted in our achieving leadership

position in the surfactant industry with a short span of time.

Our company also focusing on to reach the customer easily with in a less span

of time, for that our commercial department play a important role to make export easy

because in today’s scenario its important for the company to save time and cost as

possible as it can, not to go any other export houses almost all the companies has their

own export house. In that commercial department take the responsibility of export


documentation of the company, there are various documents those are important for

the company(INDIA GLYCOL LIMITED) are following-:

EXPORT DOCUMENTATION

Export is effected through; Sea/Air/Land route/Post/Courier services

Documents normally prepared are Invoice, Packing List, Shipping Bill (as per the

requirement of availing the benefit either under the Duty Drawback Schemes or

DEPB or Duty Free),Marine Insurance cover, Certificate of Origin, Inspection/Test

Certificate, wherever required, Airways Bill/Consignment Note, Good Receipt, Postal

Receipt, Courier Company Receipt, Bill of Lading, Mate receipt, Invoice duly

attested by Customs, Bank Attested Invoice, Bank Certificate of Export and

Realization. These documents are required to be prepared carefully and kept properly.

Precaution must be taken to keep in safe custody EP Copy of Shipping Bill,

Bank Certificate of Export and Realization as these are two important documents on

the basis of which incentives, benefits and facilities can be claimed under the Foreign

Trade Policy.

Export documents have to be prepared for various purposes viz.

1. Declaration of export as per exchange control regulations of his country.

2. Transportation of the goods.

3. Other purpose

4. Customs clearance of the goods.


Some of the forms preparing documents have been standardized under the

Aligned Documentation System introduced w.e.f. 1.10.1991.

1. Declaration forms

All exports to which the requirement of declaration applies must be declared on

appropriate form as indicated below:

GR Form: To be completed in duplicate for export otherwise than by post

including export of software in physical form i.e. magnetic tape/discs and paper

media.

SDF Form: To be completed in duplicate and appended to the Shipping Bill for

exports declared to customs offices notified by the Central Government which

have introduced EDI system for processing shipping bill.

PP Form: To be completed in duplicate for export by post.

SOFTEX: To be completed in triplicate for export of software otherwise than

in physical form i.e. magnetic tapes/dics and paper media.

2. Documents for transportation of goods

a. Airways Bill/Air Consignment Note

The receipt issued by an Air line company or its agent for carriage of

goods is called Airways bill or consignment note. The airway bill consists of

three originals and six to eleven copies. It is a non-negotiable document.

Original 1 (Green) is retained by the carrier issuing the AWB for accounting

purposes. Original 2 (Pink) accompanies the consignment to final destination.

Original 3 (Blue) is given to shipper as proof of receipt of the goods for

shipment.

b. Bill of Lading

The bill of lading is a document issued by the shipping company or its

agent acknowledging the receipt of goods mentioned in the bill for shipment on

board the vessel and undertaking to deliver the goods in the like order and

condition as received to the consignee or his order provided the freight and


other charges specified in the bill of lading have been duly paid. Bill of Lading

is issued in the standardized aligned document format.

c. Mate Receipt

It is issued by the Chief of Vessel after cargo is loaded and it contain

the name of shipper, place of receipt and voyage No., port of loading, port of

discharge, place of delivery, marks and Nos., container No., description of

goods, gross weight and other details as per the standardized aligned document

format. The receipt is of transferable nature and must be presented at the

shipping company’s office to be exchanged into Bill of Lading.

d. Combined Transport Document

Inland Container Depots have been set up at various centers in the

country. These dry ports have made it possible to cover the entire movement of

goods from ICD to destination under the transport document called Combined

Transport Document.

3. Documents for Custom Clearance of Goods

a. Shipping Bill/Bill of Export

Shipping Bill is the main document required by the Custom Authority

for allowing shipment. Basically, shipping bills are of four types. The major

distinction between one type and another Shipping Bill lies with regard to the

goods being subject to ; (a) export duty/cess, (b) Free of duty/cess, (c)

entitlement to duty drawback, (d) entitlement of credit of duty under DEPB

Schemes and (e) re-export of imported Goods.

Following documents are required for processing of Shipping Bill:

(a) GR Forms in duplicate for shipments to all countries.

(b) Four copies of packing list giving contents, quantity, gross and net

weight of each package.

(c) Four copies of invoices indicating all relevant particulars such as

No., of packages, Quantity, Unit rate, total f.o.b./c.i.f. value, correct and

full description of goods etc. (One copy of this invoice is to be pasted on

the duplicate copy of Shipping Bill).


(d) Contract, Letter of Credit, Purchase order.

(e) Inspection/Examination Certificate.

The formats presented for the Shipping Bill are as under:

1. White shipping bill for export of duty free goods prepared in

triplicate in the standardized format.

2. Green shipping bill for export of goods under claim for duty

drawback prepared in quadruplicate.

3. Yellow shipping bill for export of dutiable goods prepared in

triplicate.

4. Pink shipping bill for export of duty free goods ex-bond prepared in

triplicate.

5. Blue shipping bill for exports under the DEPB scheme prepared in

seven copies.

Where the goods are to be cleared by the Land Customs, Bill of Export is

prepared instead of shipping bill. Bill of Export is also of four types i.e. White,

Green, Yellow and Pink for the purpose stated above.

Appraised by the Custom Authorities

The Customs Appraiser/Examines shipping documents and appraises the

value having regard to the following considerations :

1. That the value and the quantity declared in the shipping bill is the

same as in the export order/letter of credit.

2. That the formalities regarding exchange control, pre-shipment

quality control inspection etc, have been duly completed. After

examination of documents and appraisement of value, the custom

examiner/Appraiser makes an endorsement on duplicate copy of the

physical examination of the shipping bill giving directions to the Dock

appraiser about the extent of physical examination of the cargo to be

conducted at the docks. All the documents, except GR (Original) Form, the

original Shipping Bill and a copy of the Commercial Invoice are returned to

the Forwarding Agent to be presented to the Dock Appraiser.


After taking delivery of documents from the Export Department,

Forwarding Agent presents the Port Trust Documents to the Shed

Superintendent of the Port and obtains carting order for bringing the export

cargo to the shipment. After bringing the cargo into the shed he presents the

following documents to the Dock appraiser for conducting physical

examination of the Cargo :


1. Duplicate, triplicate and export promotion copies of the Shipping

Bill

2. Commercial Invoice

3. Packing List

4. AR4 (Original) and Duplicate) and Invoice

5. Inspection Certificate (Original)

6. GR Form (Duplicate)

4. Other Documents

Other important documents used in export business are:

a. Commercial Invoice

It is one of the most important documents issued by the seller in the

standardized format. The invoice is usually made out for the full realizable

amount of goods as per trade term, the exception being the undrawn balance

which is shown as a deduction from the full amount.

The invoice should be strictly according to the contract of sale and

should be on the paper of the seller and must be signed by him or by the person

acting on his behalf.

b. Consular Invoice

Consular Invoice is a document required mainly by the Latin American

countries like, Kenya, Uganda, Tanzania, Mauritius, New Zealand, Burma,

Iraq, Australia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. This invoice is most

important document which needs to be submitted for certification to the

Embassy of the Country concerned. The Exporter has top pay to the Embassy

Concerned some fees for the certification for this invoice.

C .Customs Invoice

Countries like U.S.A., Canada etc. need custom’s invoice. It is generally

made out on a a special form presented by the customs authorities of the

importing countries and help for allowing entry of goods in the importing

country at preferential tariff rates. The invoice forms are generally available at


the consular office of the importing country and are required to be signed and

witnessed after duly filling the same.

d. Legalised/Visaed Invoice

These are the invoice sworn for their genuineness by the seller as being

correct before the appropriate consulate/chamber of commerce/embassy as the

case may be and they bear the stamp and authentication of the consulate

/chamber of commerce/embassy as being in order. A nominal charge is

collected by them from the seller for doing this. These invoices are required by

some of the Latin American countries. There is no prescribed form of this

invoice.

e. Certified Invoice

At times exporter is called upon to certify on the invoice that the goods

are of particular origin or manufactured/packed at a particular place and in

accordance with specific contract. When certificates as such appear on the

invoice it is called as a Certified Invoice.

f. Bill of Exchange/Draft

A bill of exchange also known as draft contains an order from the

creditor to the debtor to pay a specified amount to a person mentioned therein.

The maker of a bill is called the “Drawer”, the person who is directed to pay is

“ Drawee” .The person who is entitled to receive payment is called the “Payee”

g. Packing List

It is a list showing detail of goods contained in each parcel/shipment. It

shows item-by-item the contents of the container or parcels shipped to enable

the buyer/receiver of the shipment to check the shipment. Packing List has to

be prepared in the aligned document form.

h. Certificate of inspection

Inspection certificate, indicating that goods have been inspected before

shipment is needed under some contracts or by some countries. This certificate

is generally required to be issued by one of the authorized independent


agencies/surveyors in the exporter’s country. The certificate is issued in the

aligned document form.

i. Black list Certificate

This is to certify that the ship/aircraft carrying the goods has not

touched a particular country on its journey or that the goods are not of a

particular country. This certificate is usually led for where countries have

strained political relations with another.

j. Weight Note

This document is used to confirm that the packets/bales etc. are of a

particular weight and not more than the stipulated weight as per contract. It

may at times give the gross weight and net weight of the whole consignment.

k. Manufacturer’s/Supplier’s quality/Inspection Certificate

This is a certificate to the effect that the goods which have been

manufactured/Supplied are as per the requirement of the contract of sale.

l. Certificate of Origin

The EEC member Countries has adopted the Generalized System of

Preferences. Under GSP, certain categories of manufactured and semi-

manufactured goods originating from developing countries including India are

entitled for concessional rates of import duties in the member countries,

thereby giving benefit to importer’s the GSP Countries.

m. Language Certificate

Importers in the European Economic Community Countries require a

Languages Certificate along with the GSP Certificate in respect of handloom

cotton fabrics classifiable under NEMEX Code 55.09.The Language Certificate

is issued by the Textile Committee against a small fee.

n. Manufacturer’s Certificate


In addition to the Certificate of Origin, some countries require a

manufacturer’s certificate to the effect that goods shipped have actually been

manufactured and are available.

o. Certificate of chemical analysis

To ensure that the quality and grade of items like metallic ores,

pigments, etc. is the same as specified in the sale contract, importers may

require the exporters to send a certificate of chemical analysis from a

recognized analyst.

p. Certificate of Shipment

Certificate of shipment agent that a certain lot of goods have been

shipped.

q. Health Certificate

When the goods that are exported are foodstuffs, marine products, hide,

livestock etc., usually depending upon the goods which are being imported, a

certificate from the health/veterinary/sanitary authorities is called for by the

overseas buyer or their custom department. This is because the importing

country desires to know if the goods are fit for human consumption and are free

from any decease which can later on create a problem.

r. Certificate of Conditioning

Certificate issued by a Competent office in which, on the basis of the

ascertained humidity factor, the dry weight of wool or silk is reckoned and

certified.

s. Antiquity Certificate

This certificate is issued by the Archaeological Survey of India in the

case of antiques.

t. Certificate of Measurement

Freight can be charged either on the basis of weight or measurement.

When it is charged on weight basis, the weight declared by exporter is accepted

u. Transshipment Bill


This document is used for goods imported into a customs port/airport

intended for transshipment.

v. Cart/Lorry Ticket

This ticket is prepared for admittance of cargo through the port gate.

This is also known as ‘Vehicle Ticket or Gate Pass’. This includes the details

of export cargo i.e. Shipper’s Name, Cart/Lorry no., mark on packages,

quantity and description.

w. Short Shipment Form

Short Shipment form is an application to the customs authorities at port

advising the Short shipment of goods and for claiming the return of the duty

and/or cess paid on such short shipping goods.

x. Shipping Advice

A shipping advice is used to inform the overseas customer about the

shipment of goods. The shipping advice is prepared in aligned document. The

exporter only advices his importer about the invoice no., bill of lading/airway

bill no. and date , name of the vessel with date, the port of export, description

of goods and quantity and the date of sailing of the vessels.

Company’s Export status

During the year under review, your Company has achieved total export

turnover of Rs. 20465.24 lacs as compared to Rs. 12566.07 lacs last year, registering

growth of 63% over last year. Your Company expects

Reasonable growth in the overall export sales in the current year. It has been

granted One Star Export House status by the Government of India, Office of the Jt.

Director General of Foreign Trade. With its improved performance, the Company

expects further improvement in this status.


EXPORTING COUNTRIES:


DIRECTORS REPORT YEAR END: MAR '08

The Directors are pleased to present the twenty fourth Annual Report together

with the audited accounts of the Company for the year ended 31st March, 2008.

Financial results (Rs. in lacs)

year ended year ended

31.03.2007 31.03.2008

Sales and other income 153867.94 108122.23

Profit before. 30367.34 10511.46

depreciation and tax

Depreciation and 6611.18 5286.22

exceptional item

Profit before tax 23756.16 5225.24

Provision for tax 5903.51 1119.93

Net profit 17852.65 4105.31

Debenture redemption 125.00 125.00

reserve written back

Profit brought forward 23040.98 21789.31

Profit available for 41018.63 26019.62

appropriation

Which the Directors have

appropriated as follows;

- Transfer to general reserve 4500.00 2000.00


- Proposed dividend 1115.30 836.48

- Corporate dividend tax 189.55 142.16

Balance carried forward 35213.78 35213.78 23040.98

Dividend

Your Directors are pleased to recommend a dividend of Rs. 4 (Rupees Four

only) per equity share. The outgo on dividend will be Rs. 1304.85 lacs, including tax

on dividend.


Performance

Sales and other income for the year have been Rs. 153867.94 lacs, compared

to Rs 108122.23 lacs last year, registering a growth of 42%. Profit before depreciation

and tax for the year has been Rs. 30367.34 lacs as compared to Rs 10511.46 lacs last

year, showing a growth of 189% and net profit after tax for the year has been Rs.

17852.65 lacs. Growth in profit was possible as a result of increased production and

productivity volume, higher sales realization, better cost management and operational

efficiencies.

During the year, your Company produced 122394 MT of MEG compared to

88350 MT last year. Ethoxylates and performance chemicals production have been

32215 MT, compared to 28952 MT last year. Glycols ethers and acetate production

has been 40793 MT, compared to 25517 MT last year.

The Company has produced 186363 KBL of alcohol at its distilleries at

Kashipur and Gorakhpur, which has supplemented ethanol required for production of

MEG and has reduced the dependence on purchase of alcohol. The Company has

also produced 27529 KBL of potable alcohol.


The Company has set up a turbo generator of 12 MW capacities. This plant

generates power by using high- pressure steam before the same is used at low

pressure in the process. This has resulted in substantial power saving.

Marketing

Sale of MEG has been 121844 MT compared to 96120 MT last year,

registered a growth of 27% over the last year. The sale of ethoxylates and

performance chemicals has been 31981 MT compared to 30343 MT last year,

registered a growth of 5% over the last year. Sale of glycols ethers and acetate have

been 41859 MT compared to 24637 MT last year, registering a growth of 70% over

the last year.

Guar gum

During the year, your Company achieved total sales of Rs. 534 lacs of the

guar gum products out of which the export turnover was Rs. 525 lacs, compared to

total sales of Rs. 1291 lacs out of which the export Turnover was Rs. 1288 lacs last

year. The Company is diversifying into the field of guar gum derivatives used for the

oil field industry and textile industry.

Ethyl alcohol (potable) and extra-natural alcohol

During the year, there has been substantial growth in the ethyl alcohol

(potable) segment. Your Company registered total sales of Rs. 24617 lacs compared

to Rs. 15308 lacs last year. Efforts are being made to

Further increase the sales of ethyl alcohol (potable). The segment contributes

around 16% in the total revenues of the Company. It has the most modem and the

largest captive distillery in Asia.

Ennature bio-pharma division (100% export-oriented unit)

The Company has set up a 100% export-oriented unit (100% EOU) by the

name of Ennature Bio-pharma Division. The Company has taken 47 acres land on

lease from the Uttarakhand government, where it will grow a wide variety of


medicinal plants, etc. It is also setting up a supercritical fluid extraction facility

(SCFE) at Dehradun which will be compliant with cGMP. The SCFE at Dehradun

will start pilot operation from July 2008 and commercial production from August

2008. This unit will be used for extraction of dietary food supplements, natural colors,

health care fruits and vegetables, herbal extracts, fruit flavors and fragrances and

spice flavors and extracts. The future thrust is on supplying more refined natural

active pharmaceutical ingredients (API) and intermediates to pharmaceutical and

natural health product industries. All these are highly value-added products. Since this

will be a 100% EOU, this diversification will also provide tax benefit.

Industrial gases

The Company produced 77246457 NM3 of oxygen and 23226354 NM3 of

nitrogen during the year. Both the oxygen and nitrogen were successfully marketed

and also used for own requirement. The industrial gases division also produced

1723494 NM3 of argon, which was also marketed at remunerative price.

RAB (concentrated sugarcane juice)

During the year under review, the RAB (concentrated sugarcane juice) unit

was completely operational. The entire production of RAB was consumed captively

to supplement the ethanol requirement.

Expansion / modernization / diversification plans

The Company will further de-bottleneck its MEG capacity by 20%. It will

shut down its chemical plant for debottlenecking and change of catalyst.

The industrial gases division is diversifying to produce food grade liquid

carbon di-oxide (C02) both at the Kashipur and Gorakhpur plants having capacities of

80 MT/day each, to meet the growing domestic market. The facilities are expected to

be commissioned at the Kashipur plant by the end of May 2008 and at the Gorakhpur

plant by the end of June 2008.

Your Company is diversifying into the field of guar gum derivative used for

the oil field industry and textile industry. It is modifying its existing plant to produce


value- added derivatives for the oil field industry, specialty derivatives for the food

and paper industry and the textile Industry.

The Company is setting up 9-MW turbo generator and slop boiler at the

Kashipur Plant for the generation of steam by way of incineration of effluent

coming out of the distillery after concentration in evaporator, to optimize the cost of

power by replacing essential power of DG set for continuous running of the plant.

The power generated through the 9-MW turbo generator will be captively used, which

will result in the saving of power cost.

The Company is also setting up a 12-MW turbo generator and slop boiler at

the Gorakhpur Plant for generation of power through heat energy of distillery effluent

incineration in the boiler after concentration. The Company proposes to sell about 7 to

8 MW power generated to the grid.

Finance

During the year under review, the Company has raised foreign currency

loans of US$ 5.83 million and rupee loans of Rs. 47 crore to partly finance the project

cost of the ongoing capital expenditure and for

Construction of the corporate office. The borrowing cost of funds has

increased to over 8.5% as compared to 7.5% last year.

The Company has been regular in meeting its obligations towards payment

of principal/interest to financial institutions/banks/debenture holders/fixed deposit

holders.

Listing of securities

The shares of the Company will continue to be traded at the Bombay Stock

Exchange and the National Stock Exchange.


Subsidiary companies

Your Company has also established a subsidiary in Singapore to augment its

activities in the South East region and help the marketing of products from the

supercritical fluid extraction facility at Dehradun to large buyers in the US and

Europe.

As required under Section 212 of the Companies Act, 1956, the audited

statement of accounts, along with the report of the Board of Directors and the

Auditors Report thereon, of the subsidiary company viz. IGL Finance Limited,

IGLCHEM International Pte. Ltd. and Shakumbari Sugar and Allied Industries Ltd.,

for the year ended 31st March, 2008, are annexed.

Fixed deposit

The amount of fixed deposit held as on 31.st March, 2008 was Rs. 2090.80

lacs. There are no overdue deposits except for unclaimed deposits amounting to Rs.

38.33 lacs.

Directors

Your Directors at their meeting held on 30th April 2008, expressed their

condolence on the sad demise of Shri M.L. Bhartia, the Chairman of the Board of

Directors. The late M.L. Bhartia was the founder promoter Director of the Company

and the guiding force behind the successful setting up of the state-of-the-art chemical

manufacturing plant at Kashipur in the rich belt of sugarcane-growing areas of

erstwhile Uttar Pradesh. The Board recalled the late M.L. Bhartias outstanding

leadership in guiding the Board to steer the Company to its current status as one of the

leading chemical manufacturing companies of India. The Board appreciated his

strong commitment, deep -dedication and active participation in leading the Company

till his last breath. The Board also recalled his visionary leadership, Unstinted efforts

and foresight ness in the implementation of the various expansion and diversification

plans of the Company. It expressed its condolence in silence to commemorate the late

Chairman.


The Board placed on record its deep appreciation of unstinted efforts of Late

M.L. Bhartia in steering the Company to its present position and in providing

visionary leadership and directions.

Smt. Jayshree Bhartia, Shri Jag Mohan N. Kejriwal and Shri Pradip Kumar

Khaitan, Directors of the Company, retire by rotation and being eligible, offer

themselves for reappointment. Your Directors recommend the reappointment of the

retiring Directors for your approval.

The Board of Directors has appointed Shri N. Ramachandran and Shri M.K.

Rao as Additional Directors of the Company, who will hold the office till the Annual

General Meeting of the Company. The Board has recommended the appointment of

Shri N. Ramachandran and Shri M.K. Rao as Directors of the Company, whose

period of office will be determined by the retirement of Directors by rotation.

Further, Shri M.K. Rao has also been appointed as the Executive Director of

the Company w.e.f. 1st May, 2008 for a period not exceeding five years, in

accordance with the provisions of the Companies Act, 1956. The appointment of the

Executive Director is subject to confirmation at the ensuing Annual General Meeting,

which is included as special business item in the Notice for convening the Annual

General Meeting.

Directors responsibility statement

Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors

confirm that:

- In the preparation of the annual accounts, the applicable accounting standards

have been followed along with proper explanation relating to material

departures;

- Appropriate accounting policies have been selected and applied consistently

and judgments and estimates have been made that are reasonable and prudent,

so as to give a true and fair view of the state of affairs of the Company at the

end of the financial year ended 31st March, 2008, and of the profit and loss of

the Company for that period;


- Proper and sufficient care has been taken for the maintenance of adequate

accounting records in accordance with the provisions of the Companies Act,

1956, for safeguarding the assets of the Company and for preventing and

detecting fraud and other irregularities;

- The annual accounts have been prepared on a going concern basis.

- Management discussion and analysis, a separate report is appended herewith.

Corporate Governance

The Board of Directors supports the broad principles of Corporate

Governance. The report on Corporate Governance as stipulated in Clause 49, as

amended, of the Listing Agreement with the stock exchanges for the year ended 31st

March, 2008, and Auditors Certificate on Corporate Governance are appended

herewith.

Auditors

The Auditors, M/s. Lodha & Co., retires at the ensuing Annual General

Meeting and offer themselves for reappointment. They have confirmed that they are

eligible for reappointment under Section 224(1 B) of the Companies Act, 1956.

Environment, energy conservation, technology absorption, etc. Your Company has

taken various measures for energy conservation at its chemical plant, such as

synchronization of UPCL with captive power grid, resulting in the reduction of high-

cost RFO consumption in DG sets. Additionally, a new bagasse-fired boiler has been

commissioned in the RAB unit for steam generation from bagasse in place of coal,

and TG 12-MW steam turbine has been commissioned for reducing RFO

consumption in DG sets.

Energy conservation measures have also been taken at the distillery plant,

such as use of alcohol scrubbers in distillery fermentation and distillation section for

increased alcohol recovery and reduction in steam requirement,

The Company is also implementing measures for reducing the consumption

of energy such as installation of extraction / back pressure steam turbine with capacity


of 8.64 MW; MEG return condensate for Rab boiler de- aerator - resulting in

increased heat recovery from MEG DM water pre-heater; LP steam saving in T-320

by utilization of steam generated from MEG column condenser; OSBL alcohol pre-

heating by using heat of recycled water; reducing the RFO consumption in MEG

heater by maximizing the biogas in heater; use of MP steam instead of HP steam in

all the three new evaporator . Trim reboilers of MEG - resulting in increased power

generation from extraction/backpressure turbine; and pre- heating of 12-MW turbine

condensate with dehydration steam condensate (exchanger is to be replaced with new

exchanger), resulting in more energy saving.

Your Company has also taken environmental conservation measures by

setting up a bio-composting facility to produce natural manure as a substitution to

chemical fertilizers. The Company is also working actively to reduce effluent

generation at the source by achieving zero discharge through adopting ferti-irrigation,

bio- composting, reverse osmosis (RO), concentration followed by incineration to

conserve the fossil fuel and other effective and competitive techniques.

The Company has installed distillery effluent evaporators at Gorakhpur and

the concentrated effluent is burnt in specially designed boilers; the calorific value of

the concentrated effluent generates super-heated steam which is utilized in the turbo

generator with capacity of 12.5 MW for power generation. The Company

proposes selling of the surplus 8-MW power generated to the grid. In the same way,

your Company has installed distillery evaporator at the Kashipur plant along with

boiler and the super-heated steam produced will generate power in a 9- MW back-

pressure turbo generator. The power will be utilised for plant operation as essential

power, which is being generated by DG set and the back pressure steam will be

utilised for plant operation.

In accordance with the provisions of Section 217(1 )(e) of the Companies

Act, 1956, and the Companies (Disclosure of particulars in the Report of Board of

Directors) Rules, 1988, the required information relating to conservation of energy,

technology absorption and foreign exchange earnings and outgo are annexed hereto

and form part of this Report.



Human resources

Your Directors wish to place on record their deep appreciation to employees

at all levels for their all-round efforts, dedication, commitment and loyal services

which helped in achieving satisfactory performance during the year. The required

information as per Section 217(2A) of the Companies Act, 1956, read with the

Companies (Particular of Employees) Rules, 1975, forms part of this report.

However, as per the provisions of Section 219(1 )(b) (iv) of the Companies Act, 1956,

the report and accounts are being sent to all shareholders of the Company, excluding

the statement of particulars of employees under Section 217(2A)of the Act. Any

shareholder interested in obtaining a copy of the said statement may write to the

Company Secretary at head office of the Company.

Social responsibility

Good governance demands adherence to social responsibility coupled with

value creation in the larger interest of the general public. Your Company, Directors

and its dedicated employees continue to contribute towards the society through

several worthwhile causes. Your Company aims to enhance the quality of life of the

community in general and has a strong sense of social responsibility.

The range of our activities begins in and around Kashipur (Uttarakhand) by

organizing regular medical camps (three days a week) so that villagers get medical

assistance free of cost. The Company actively participates in organizing blood

donation camps, plantation of trees for better environment, facilitating in the

constructing roads, bridges, drains and installing street lamps and hand pumps for

drinking water, benefiting nearby areas. The Company also extends support to the

victims of flood during monsoon, distributes blankets to the poor during winter,

promotes sports and socio-cultural activities in the state of Uttarakhand, supports the

local administration in fighting and managing fire accidents and other disasters taking

place in proximity to the factory and other noble works in the area surrounding the

Factory.


Your Company is supporting a community school at Dwarka, New Delhi,

through a charitable institution called Nirmal Bhartia Society for education

promotion, by making grants. The school is now operational and equipped with

modern facilities and robust infrastructure. The School possesses a qualified and

experienced faculty, which enable children to make a great future. The Company has

also sponsored a faculty position in the Herbal Research & Development Institute,

centre of aromatic plants at Dehradun to promote herbal development in the state of

Uttarakhand.

Your Company is extending educational and on-job training to the students

of many professional institutions such as The Institute of Company Secretaries of

India, The Institute of Chartered Accountant of India and the professionals of many

other management and engineering institutions, helping them to make a new

beginning to their future professional career.

At the end, your Directors constantly strive to serve the society by

implementing other policies which benefit people at large.

Acknowledgment

Your Directors place on record their deep appreciation of the support

extended by the Central Government, states of Uttarakhand and Uttar Pradesh,

financial institutions and banks and look forward to their continued support.


QUARTERLY OVERVIEW OF THE COMPANY

1.Net Sales

Q1 FY2009: At Rs 2,500.6 million from Rs.2, 712.1 million.

2. PAT

Q1 FY2009: At Rs. 121.3 million from Rs. 356.3 million

3. EPS

Q1 FY2009: At Rs. 4.35 from Rs. 12.78 million

India Glycol Limited (IGL), a market leading player in Ethylene Oxide

Derivatives (EOD) announced its performance for Q1 FY2009 today.

Quarterly review: Net Revenues in Q1 FY2009 stood at Rs. 2,500.6 million

from Rs. 2,712.1 million- this is on account of production losses given the planned

shut-down at the Kashipur facility undertaken to carry out a change in catalyst and the

stabilization subsequently of the facility. This de-bottlenecking is resulting in a 20%

rise in production volumes for the Company. Other Income in the period was at Rs.

77.3 million as against Rs. 190.1 million. The PBIDT For Q1 FY2009 was at Rs.

427.2 million from Rs. 744.0 million last year. The Interest related expanses was at R.

109.6 million from Rs. 119.0 million. Depreciation related expenditure was at

Rs.147.6 million from Rs. 141.6 million. Profit Before Tax changed from Rs. 483.4

million to Rs. 170.0 million in Q1 FY2009 –given the lower Production achieved in

the quarter. Net Profit was at Rs. 121.3 million from Rs. 356.3 million-translating into

EPS of Rs. 4.35 (Rs. 12.78 in Q1 FY2008).

Growth Opportunities

Performance in FY2009 will be driven by a combination of factors-

primarily the increase being witnessed in the Chemicals Facility. Post the

change of catalyst at the Kashipur plant, the volume increase is expected

to stand at 20%


The market for EOD’s continues to show strong traction. The Company is

expected to increase the volume and value contribution from these

products strongly in the future.

The overall result will be subject to realization trends within MEG. The

macro factors in this business appear good-given the strong demand for

polster products. Further the prices of molasses are expected to trend

upward given the decline in cane acreage overall. In the meantime, the

company is strengthening its flexibility in usage of key input –sugarcane,

molasses and ethanol. As the largest plater in the molasses/ethanol market

the Company has storage capacities to meet internal requirements for 3-4

months.

India Glycols-Outlook

In fiscal year 2009-10 IGL will see noticeable improvements to revenue

and earnings performance owing to:

Volume upsides on account of the 20% increase in production achieved

due to catalyst change and de-bottlenecking at Chemicals facility at

Kashipur.

Strong product line-up in Chemicals-with higher proportion of turnover

from value added, performance chemicals.

Augmented distillery capacities that will result in higher level of captive

sourcing of ethanol –thereby benefiting already good performance in

chemicals. Power generation from distillery effluents will ramp-up and

further enhance profitability.

Strong growth prospects are also in the IMFL and Country liquor

business, where the Company has plans to improve the distribution of its

range to other market nationally.

The new business initiatives taken by the company i.e. Nutraceuticals

and the Co2 can also be expected to show better traction in the same

period.


INDIA GLYCOLS GETS A PRUDENT PUSH

The bulls have been waiting in anticipation for some time for the Sensex to

climb over 8000. But the jinx continued as they were thwarted again. The blame was

squarely placed on the government’s decision to hike fuel prices. However, the

optimists far outnumber the pessimists at the street and are betting for the index to

take the final few steps before the week is over.

Right chemistry

Prudent Fund has taken a liking to the chemicals stock India Glycols, as

evidenced by its purchases at the counter. The stock has been on a vertical climb in

the past few weeks and has seen a 79 per cent appreciation in the past month alone to

Rs 259.

Apparently, what has caught the attention of Prudent is the fact that molasses

prices has been falling. To make the connection apparent, India Glycols makes mono-

ethylene glycol (MEG), for which it uses molasses as raw material.

According to pundits, molasses prices have fallen by more than 25 per cent in

the last month and a further fall is expected. Also Prudent feels that the stock

valuation at 9x is very low, compared with its growth potential.

Going soft

Those who have been wondering about the reason behind the rise in stock price

of Four Soft got their answers. Close on the heels of many domestic and foreign fund

purchases at the counter, came news that the company has signed an agreement to

acquire the logistics software business of UK-based DCS Transportation for $19

million (over Rs 85 crore) in an all-cash deal. Apparently, this would make Four Soft

the world’s largest transportation and logistics software product company.

The buying at the counter had taken the stock price from Rs 45 levels a month

back to above Rs 100. Phoenix fund was among the many who had bought the stock

in anticipation of the deal. The buyers were quick to book profits too, which led to the

stock tumbling down yesterday.


However, domestic operators who have been late to wake up, were back at the

counter on Tuesday, resulting in a 2.5 per cent rise in stock price.

In other news...

The Amtek India stock has witnessed a sustained rise over the past few

months. The buzz has been that the company could get merged with Amtek Auto.

Pundits have been noting that any such merger is sure to enhance the share value of

Amtek India. However, some are already in the mood to book profits at the counter.

Uncle Sam for example has decided to book profits at the counter at Rs 502 levels.

Considering the fact that the stock has gained more than 90 per cent in the past four

months, that seems to be a wise decision.

India Glycols buys UP sugar firm In a bid to expand backward integration and

get a strategic hold on ethanol costs, the Rs 1,400-crore India Glycols Ltd (IGL), a

leading petrochemicals and specialty chemical player controlled by the Bhartia group,

has acquired a 96.6 per cent stake in UP-based Shakumbari Sugar & Allied Industries

Ltd for Rs 47 crore. India Glycols will invest Rs 180 crore in the acquired company to

enhance its distillery, power generation and crushing capacities, the company said in a

statement on Sunday.Shakumbari Sugar has a crushing capacity of 3,200 tonnes per

day (TCD) along with a modern distillery of 40 kilo-litres per day, which will be

increased to 7000 TCD and 250 kilo-litres per day, respectively.Shakumbari Sugar

has a captive cogeneration power capacity of 8 megawatts, which would be increased

to 40-50 MW. The company intends to sell the surplus power after meeting its captive

requirements.

“This acquisition is a first step towards attaining a complete backward

integration for the company. This would greatly strengthen our position to enable us

to operate at an optimum capacity required for a robust growth strategy of ours,” the

company said in statement. The acquisition would further help in meeting the

company’s requirement for the supply of ethanol to oil companies for blending with

crude-based fuels, besides giving a cost advantage for captive consumption, a

company official said. India Glycols is engaged in the manufacture of MEG


(monoethylene glycol), ethoxylates and performance chemicals, glycol ethers and

acetates, ethyl alcohol (potable) and industrial gases.

CONCLUSION

To work in India Glycol Ltd. under Commercial department was a wonderful

experience for me as a trainee. That was just like my non salary based job in which I

have learnt a lot. I got the exposure of practical work apart from my learning stage. I

have found real working environment where the employees give their best in the job.

IGL was a first industry in India which produce Ehtlene Oxide and Mono-ethele

glycol as a product and was the largest exporter. In the fiscal year 2009-10 there are a

lots of growth opportunities for generating revenue like company move towards the

100% export orientated unit in by the name of Ennature bio-pharma divisioin for

extraction of dietary food supplement, natural colours healthcare fruits and

vegetables, But due to the establishment of plant in Europe with the same key export

product in minimum cost than the India Glycol Ltd. it become down into the

International Level so govt. should support the company and provide extra facilities

to encourage the export.

I found in IGL every employee got the best facilities related to education of

their wards, sports, medical, transportation and security, these all facilities make

employees to be psychologically relaxed towards their family and loyal towards the

organization.


India Glycol Ltd Arpit Singh Final Report

Documents

igl dehradun

project report

award of degree

company india glycol

summer training report

coordinator mba ibit

mba international business

helpful support