SUBMITTED BY :- A.

VENUGOPAL

CONTENTS

SR.NO 1 2 3 4 5 5 6 7 8 9 10 11 12

PARTICULARS ABSTRACT OBJECTIVE TO STUDY INTRODUCTION MAJOR SALT PRODUCING CENTRES MARKET POSITION IN INDIA PROFILE & STATUS OF SALT INDUSTRY GOVERNMENT OF INDIAS ROLE IN DEVELOPMENT OF SALT INDUSTRY GOVERNMENT ACTIVITIES FOR SALT DEVELOPMENT SALT MANUFACTURING PROCESS SOLAR SALT TECHNOLOGY TYPICAL OPERATION INVOLVED IN SOLAR SALT OPERATION SALT USES IN VAROUS SECTOR CAPITAL BUDGET MODEL FOR SALT HARVESTING BUSINESS

PAGE NO 4 5 6 7-8 9-11 12-16 17-18 19-27 28-30 31-32 33-36 37-41

SR.NO 12 13 14 15 16

PARTICULARS POTENTAIL FOR THE GROWTH OF SALT INDUSTRY OPPORTUNITIES FOR SALT BUSINESS IN INDIA SUGGESTIONS AND RECOMMENDATIONS RELAVENT INFORMATION ANNEXURES REFERENCES

PAGE NO 42 43-44 45

ABSTRACT

Solar salt works are very well known plants, mainly because of their product. Salt is one of the world's best-known minerals and the chemical substance most related with the history of human civilization. Its significance for the creation of life itself on the planet and its importance as a commodity are paramount. The biological process that develops along with the increasing salinity gradient in the evaporating ponds and crystallizers of salt works, produces excellent food for many. The basic steps in the evolution of solar salt production process are identified, where the final one corresponds to modern salt works operation. It is shown that especially modern salt works are not just salt production plants but they also function as integrated saline

wetlands. Their ecological importance consists in the fact that they comprise the characteristics of both regular and hyper saline wetlands.

OBECTIVES TO STUDY
TO STUDY THE WHOLE PROCESS OF PRODUCTION SALT PRODUCTION TO STUDY CONTROL PRODUCTION PLANNING AND QUALITY

TO ANALYSIS THE SALT BUSINESS IN INDIA . GOVERNMENT ROLE IN SALT INDUSTRY TO STUDY THE SCOPE OF SALT BUSINESS IN INDIA. COSTING (CAPITAL BUDGETING FOR SALT HARVESTING BUSINESS

INTRODUCTION OF SALT INDUSTRY IN INDIA

India is the third largest Salt producing Country in the World after China and USA with Global annual production being about 230 million tones. The growth and achievement of Salt Industry over the last 60 years has been spectacular. When India attained Independence in 1947, salt was being imported from the United Kingdom & Adens to meet its domestic requirement. But today it has not only achieved self-sufficiency in production of salt to meet its domestic requirement but also in a position of exporting surplus salt to foreign countries. The production of salt during 1947 was 1.9 million tones which has increased ten fold to record 20 million tones during 2005.

SOURCES OF SALT: The main sources of salt in India are Sea brine Lake brine Sub-soil brine and Rock salt deposits

MAJOR SALT PRODUCING CENTERS:

Sea water is an inexhaustible source of salt. Salt production along the coast is limited by weather and soil conditions. The major salt producing centres are Marine Salt works along the coast various states:1. Gujarat (Jamnagar, Mithapur,Jhakhar, Chira, Bhavnagar,

Rajula, Dahej, Gandhidham, Kandla, Maliya, Lavanpur), Gandhidham is located in vast desert close to the Arabian sea is the largest four where wind and sun rise is plenty and rainfall is rare its numerous salt pans are renowned for excellent quality raw white salt which is pure ,white and aboundant.

2. Tamil Nadu (Tuticorin, Vedaranyam, Covelong), 3. Andhra Pradesh (Chinnaganjam, Iskapalli, Krishnapatnam, Kakinada & Naupada), Maharashtra(Bhandup, Bhayandar, Palghar), Orissa (Ganjam, Sumadi) and West Bengal (Contai) 4. Inland Salt Works in Rajasthan using lake brine and sub-soil brine viz. Sambhar Lake, Nawa, Rajas, Kuchhaman, 5. Sujangarh and PhalodiSalt works in Rann of Kutch using subsoil brine. 6. Kharaghoda, Dhrangadhra; SantalpurRock Salt Deposits at Mandi in the State of Himachal PradeshThe major salt producing centres . Fig :-1
Andhra Pradesh, Maharashtra, Orissa, Karnataka, West Bengal, Goa, Himachal Pradesh, Diu & Daman.

8%

12%

4%

Gujarat

76%

Rajasthan

Tamil nadu

MARKET POSITION IN INDIA Global demand for salt is forecast to grow 2.5 percent per year to 305 million metric tons in 2013. Expansion of salt demand in developing countries will more than offset the expected contraction of salt markets in advanced economies, SOURCE:- World Salt made available by Reportlinker.com The large chemical manufacturing market will generate the majority of additional demand between 2008 and 2013 due to strong expansion of chemical manufacturing activity in China. This country was the largest consumer of salt in 2008, mostly due to its sizable chemical manufacturing industry, but also because of the dietary needs of China's 1.3 billion residents. China accounted for nearly one-quarter of global salt demand in 2008, and is projected to be the fastest growing major national market between 2008 and 2013 as its economy continues to expand robustly. "Flooding, un-seasonal rains, foggy weather in China and Australia have ensured the demand picking up fromJapan, Bangladesh, Nepal, Vietnam, Indonesia and Malaysia for the industrial salt. Exports in this calendar year (till date) have touched 3.8 million tonne and we expect it to cross 4.3 million tonne by December-end. On an average, India exports 2.5

million tonne salt," said Raval, who is also the general manager of Solaris ChemTech Industries, a part of the $4-billion Avantha Group. India is the third-biggest salt manufacturer in the world after the US & China. Salt production in India is to the tune of about 19-20 million tonne per annum, of which Gujarat produces 70%. In the domestic market, over 5.5-6 million tonne is used by the edible salt industry, 8.5 million tonne is used by the chlor-alkali industry (which mainly produces caustic soda, chlorine and soda ash) and over 2 million tonne in the water softening and tanning industry. Export contracts were signed at $35-40 a tonne. "Raw salt prices are currently ruling higher by Rs 100 to Rs 150 than the previous year's Rs 600-800 a tonne. In the retail, refined iodized salt was selling at Rs 1,200 to Rs 1,800 a tonne, depending on the brand and packaging, compared to Rs 1,000 to Rs 1,200 a tonne at the beginning of the year, Source ET Ahir Salt Industries' manager Raju Bhai Ahir. India's edible salt market is 5.5-6 million tonne with branded salt market accounting for 1.3 million tonne. With a market share of 64% in the branded salt market, Tata Salt is the leading player, followed by Hindustan Unilever's Annapurna, Nirma's Shudh Salt and ITC's Aashirvaad Salt. "On the backdrop of a balanced supply and demand, we see prices to remain stable. Exports will be the real game changer in the coming days," said Tata Chemical COO (consumer products) Ashvini Hiran. The largest producer of caustic soda in India, Gujarat Alkalies & Chemicals (GACL), expects salt prices to increase prices by 1520%. He added that all major players like GACL, Indian Rayon, Gujarat Fluoro chemicals were on an expansion mode. "By 2014, GACL will increase caustic soda production by 300 tonne per day from the current production of 1,100-1,150 tonne per day.

PROFILE & STATUS OF SALT INDUSTRY

There

are

about

13000

salt

manufacturers

engaged

in

production of Common salt in an extent of about 5.50 lakh acres in the Country. It is estimated that 90 per cent of the total number of salt manufacturers are small salt producers (having an individual extent of less than 10 acres for salt manufacture), 5.5% is large scale producers (having an individual extent of more than 100 acres) and 4.5 % is medium scale producers (having acres) Average Annual Production of Salt in India is 176 lakh tones whereas ever high production of 199 lakh tones was recorded during 2005 followed by 181 lakh tonnes during 2006. Gujarat, Tamil Nadu and Rajasthan are surplus Salt producing States an individual extent between 10 and 100

10

accounting for about 96 per cent of the Countrys production. Gujarat contributes 76 per cent to the total production, followed by Tamil Nadu (12 %) and Rajasthan (8%). The rest 4% production comes from Andhra Pradesh, Maharashtra, Orissa, Karnataka, West Bengal, Goa, Himachal Pradesh, Diu & Daman.

Fig:-2

Fig :- 3

11

On an average 62% of the total production is from Large salt producers followed by small scale producers (36%) and rest by medium scale producers . The average annual supplies of salt for human consumption is about 57 lakh tonnes and that for industrial consumption is about 83 lakh tones; 57% of the salt for human consumption moves by rail and 43 % by road. 89% of the salt for industrial consumption moves by road, 7 % by rail and 4% by coastal shipment to various industries; when the total indigenous supplies is taken, 69 per cent moves by road, 27% moves by rail and 3% by sea India exports surplus production of salt to the tune of about 25 lakh tonnes on an average; During the year 2005, a record export of 38 lakh tonnes was achieved primarily due to surge of demand from China. Other major countries importing salt from India are Japan, Bangladesh, Indonesia, South Korea, North Korea, Malaysia, U.A.E., Vietnam, etc.

12

Government of India has adopted the strategy of Universal Salt Iodisation and Consumption for elimination of Iodine Deficiency Disorders (IDD) in the country under the National Iodine Deficiency Disorders Control Programme (NIDDCP). Iodine is supplemented in the diet through Iodized Salt for combating IDD. The Programme was started in 1962 initially confining to Goitre endemic areas but after 1984 it was implemented throughout the country. Thus as on date a significant progress has been made on Universal Salt Iodization. The country produces about 50 lakh tones of Iodized salt and about 49 lakh tones of iodized salt is supplied for human consumption against the requirement of about 54 lakh tones for entire population. The country has created more than adequate salt iodization capacity of over 110 lakh tones. Salt Industry is labour intensive in the country. About 1.4 lakh labourers are employed daily in the Salt Industry on an average. Salt Commissioners Organization has put in place a number of Labour Welfare Schemes ameliorating the working and living conditions of salt labourers.

13

GOVERNMENT OF INDIAS ROLE IN DEVELOPMENT OF SALT INDUSTRY:

Salt is a Central subject in the Constitution of India and appears as item No.58 of the Union List of the 7th Schedule, which reads: Manufacture, Supply and Distribution of Salt by Union Agencies. Regulation and control of manufacture, supply and

a)

b)

distribution of salt by other agencies. Central Government is responsible for controlling all aspects of the Salt Industry. Salt Commissioners Organization, an attached Office under the of of Ministry is of Commerce Policy & with & Industry above (Department Government Industrial India, Promotion), the

entrusted

task. Government of India has de-licensed Salt Industry by deleting provisions relating to Salt in the Central Excise

14

& Salt Act, 1944 vide Finance Bill of 1996-97. In line with Government of Indias Policy of Liberalization and simplification of Procedures, the Salt Cess Rules, 1964, have been amended vide Notification No.GSR 639(E) dated 04.09.2001. Industry in Salt Commissioners Organization plays a the country. The thrust of the Salt facilitating role in overall growth and development of Salt Commissioners Organization currently is on the following:

Technological Development and Quality Improvement Salt Iodization Programe for combating Iodine Deficiency Industry Labour Welfare Schemes for Salt Workers Particularly housing under NAMAK MAZDOOR AWAS YOJNA Disorders. Infrastructure Development promoting Salt

Export of Salt

(c) The main functions of the Salt Commissioner's Organization are: Leasing of Central Government land for salt manufacture; Planning and facilitating production of salt; Arranging equitable distribution and monitoring the quality and prices; Promotion of technologic a development and training of personnel;

15

Maintenance of standards and improvement in quality of salt; Nodal Agency for monitoring production, distribution and quality control of iodized salt; Management of Departmental lands;

(d)

Planning,

formulating

and

monitoring

execution

of

development and labour

welfare schemes; Construction of

dwelling units for salt workers under Namak Mazdoor Awas Yojana. Promotion of exports and preshipment inspection; Collection of Salt Cess, Assignment Fee, Ground Rent and other dues; Rehabilitation of Salt Works affected by natural calamities.

HIGHLIGHTS DURING 2008-09:

Fig:- 4 1. Production of 191.51 lakh tonnes of salt during 2008-09.

2. Export of 24.38 lakh tonnes of salt valuing at about Rs. 16

254.07 crore during 2008-09.

3. Two inorganic chemical complexes to produce common salt for export, Potash & Bromine are under construction in Kutch District of Gujarat. About 86102 Acres of land has been allotted by the state Government to the private entrepreneurs. 4. Development and Labour Welfare projects worth Rs. 79.03 lakh were executed during 2008-09. Under Namak Mazdoor Awas Yojana (NMAY), 4878 dwelling units have been constructed so far and 114 units are at various stages of construction. The production of Iodised Salt was 53.68 lakh tonnes and 49.23 lakh tonnes was supplied for domestic use. 2.00 lakh tones of iodised salt was exported during 2008-09.

5. About 90% of the countries population had access to iodised salt under the National Iodine Deficiency Disorders Control Programme (NIDDCP). 6. Efforts were made by Salt Commissionerate in co-ordination with Food and Civil Supplies Departments in various States to provide access of iodised salt to Below Poverty Line (BPL) population.

17

7. Establishment of Model Salt Farm (MSF) at Ganjam (Orissa) at an estimated cost of Rs. 10.80 lakhs to demonstrate production of good quality salt.

GOVERNMENT ACTIVITIES FOR SALT DEVELOPMENT

1. Labour & Expenditure On Development And Labour Welfare Works. 2. Rehabilitation of salt work damaged due to natural Calamities. 3. Labour welfare activities: A. Namak Mazdoor Awas Yojana B. National Consultation on Salt Workers C. Other welfare and Training Activities Fig:- 5

18

19

SALT MANUFACTURING PROCESS

Salt, or sodium chloride, is a chemical compound with the chemical formula NaCl; for every gram of salt, almost 40 per cent is sodium (Na), the sixth most abundant element on Earth, and a little over 60 per cent is chlorine (Cl). Salt is a white, crystalline compound, has low toxicity and is completely nonflammable. Salt is added to food as a flavor enhancer (table salt) and is a daily diet requirement of humans. It is commonly applied to roads and pavements as a de-icer, used as a feedstock for chlorine and sodium hydroxide (caustic soda) manufacture 20

both of which are used to made Consumer-related end-use products such as polyvinyl chloride (PVC), a plastic made from chlorine, and paper pulping chemicals manufactured from sodium hydroxide.

LAY OUT DIAGRAM OF SALT WORK

21

Mechanized operations consisting of several interconnected evaporation ponds and crystallizers. In these salt operations, ponds can have sizes of a few to several hundred hectares each with depths of 0.5 m up to 1.5 m. For a schematic outline of a typical permanent salt work . Sea water is pumped into the first pond and flows by gravity through the consecutive evaporation ponds. While passing through the pond system salinity levels gradually build up as a result of evaporation. As the salinity increases, salts with low solubility precipitate as carbonates and sulfates .Once the sea water has evaporated to about one tenth of its original volume . Fourth evaporator brine is pumped into the crystallizers where sodium chloride precipitates. Before all sodium chloride has crystallized, the mother liquor, now called bittern, has to be drained off. Otherwise the sodium chloride deposits will be contaminated with MgCl2, MgSO4 and KCl which start precipitating at this elevated salinity .The technique of salt production thus involves fractional crystallization of the salts in different ponds. To assure that the different salts

22

precipitate in the correct pond, salinity in each pond is strictly controlled and during most of the year kept at a constant level.
(Fig:- 7)

First Stage The above diagram -3 explains Gradual evaporation of seawater volume reduced to 37% when density reaches to 10 deg Be.

23

Second Stage The original volume reduces to 20%. The liquid remain

unsaturated till 17 deg Be. Some times it is noticed that a portion of Gypsum and Calcium and Magnesium Carbonate separates out at 12 deg Be.

Third StageWhen concentration reached to17 deg Be the calcium sulphate (CaSO4 2H2O) begins to separate out in form of thin layer first it float thereafter settle down at bottom. The major portion of CaSO4 separate out at 17 deg to 25 deg Be. Fourth Stage Here separation of Sodium Chloride start along with other salt as impurities of sodium chloride. At this stage rate of evaporation reduces less than 50% of Sweet water. As the evaporation proceeds for every 100 grams of water evaporated from saturated solution, 36.5 grams of sodium chloride precipitate. The solubility of sodium chloride being 36.5 grams at 30 deg C in 100 grams of water, the percentage of salt present in saturated solution would be:36.5 / (100+36.5) = 26.74 % by weight. Thus for every 100 grams of saturated solution we have 73.26 grams water and 26.74 grams salt. The fifth, sixth and seventh stages are for bittern for the recovery of by products of Salt.

24

2) Crystallizers- This is a part of fourth stage only. The crystallizers are the heart of the salt works. Hence its best utilization is most important for a salt works. The crystallizers should give maximum yield, best quality salt with minimum brine consumption. It has its own importance. It is necessary that for proper control of quality, in addition of checking of sp. gravity / density the ca & mg should also be determined, before charging the brine to crystallizers. After charging of brine to crystallizers, it is necessary to continue to monitor the density and as well as Ca & Mg in Brine and in salt being precipitate. Normally specific gravity 1.21 to 1.25 (density 25.17 to 29 deg Be) maintained in crystallizers. It is also very important to maintain about 20 Cms depth in brine. In deep charging crystallizers, the formation of crystal is cubical where as in shallow charging crystals formation is hollow type. Removal of impurities in cubical crystal is easy in washing plant. a).Wave action Wave action in Wave action in Deep charging Shallow charging Deep charged crystallizers get much more wave actions as compared to shallow charged. This artificially increases the surface area, which again helps to increase the evaporation. The surface area increases by about 15% depending on wind velocity, direction and size of the crystallizers. The above figures show wave action in deep and shallow charged crystallizers. Crystal The shape of the crystal is very important of quality of salt in deep charging the crystals are solid, heavier and do not retain mother liquor after harvesting impurities are drained out

25

very fast and at the time of washing also magnesium salts can be washed out very fast. Whereas in shallow charging it is just the opposite. Crystal is of hollow type, which retains mother liquor after harvesting, and it dries up inside the crystal. At the time of washing it takes longer time to remove impurities, which results in washing losses.

SALT PROPERTIES Salt is a chemical compound with the following properties:

26

 Crystals or white crystalline powder; Transparent and colorless in crystalline form; crystallizes in the isometric system, usually in the form of cubes; Soluble in water (35.6g/100g at 0C and 39.2g/100g at 100C); Slightly soluble in alcohol, but insoluble in concentrated hydrochloric acid; Melts at 801C and begins to vaporize at temperatures just slightly above its boiling point of 1,413C; Hardness of 2.5 on the MOH scale of hardness; Specific gravity of 2.165; non combustible; Low toxicity; hygroscopic thereby absorbing moisture from damp

atmospheres above 75% relative humidity below which it will dry out. In its natural form, salt often includes traces of magnesium chloride, magnesium sulphate, magnesium bromide, and others. These impurities can tint the otherwise transparent crystals, yellow, red, blue or purple.

27

Fig - 6

Fig :-6 (FLOW CHART PRODUCTION OF SALT)

28

29

The diagrams of typical type of crystals in deep and shallow charger. Figure 8 :Crystal of deep Charging, Cubical type

Figure 9 :Crystal of shallow charging Hollow type

b) Micro-organisms The biological system of salt works particularly of crystallizers is very important. In crystallizers it is most concentrated brine having maximum value as all cost is already incurred hence its losses by leakage of seepages is definitely erosion of salt works profit. The biological system helps to develop more algae in salt works, which in final stages in crystallizers becomes of deep red color. Higher column of brine helps in growth of microorganisms. The higher column also gives more dark color shade to brine. This

30

helps to absorb more heat in brine; finally this increases the rate of evaporation. The microorganisms also help to seal the small leakages/seepages. Thus loss of valuable brine decreases. This will help to improve the yield of the salt works. Lot of work is required to be done in this field.

SOLAR SALT TECHNOLOGY

31

Solar Salt Technology is oriented, but not limited, to the production of Salt by solar evaporation of brine containing Sodium Chloride from Sea Water, Lake Brine or Underground Brine. By-products, including potassium, magnesium, chlorides, sulfates salts, etc. could also be obtained by solar evaporation of the bitterns. Bitterns is the remaining brine after the sodium chloride has been crystallized. Solar salt production requires flat impermeable areas for the construction of the solar ponds. In areas with more than normal acceptable seepage, lining could be used. High evaporation and low rainfall are the ideal weather conditions. Solar Salt Process Description

The Sea Water or Brine is fed and continuously concentrated in a series of solar evaporation ponds until it reaches the Sodium Chloride saturation point. Some small amounts of iron and carbonate salt crystallizes in the concentration area between 3.5 to 16 Be. The major amount of Calcium Sulfate crystallizes between 13 to 23.5 Be. The remaining small amount of Calcium Sulfate is deposited in the crystallizers as impurities of the Sodium Chloride. A natural ecological system is developed in the ponds and varies as a function of the density. The ecosystem consists of fish, crustaceans, sea grass, seaweed, brine shrimp, brine fly, microalgae, bacteria, protozoa, halophilic bacteria, etc. The natural mat of organic material, built on the floor, helps in reducing

32

seepage. The saturated brine from the concentration area is transferred to the pre-crystallizers, pickle pond, to feed the crystallizers where 4 to 6 inches per year of salt is crystallized. Each crystallizer is drained and harvested once or twice per year. The salt is harvested and transported to the Washing Plant. The Washing Operation consists of using controlled saturated brine with low content impurities to remove the superficial impurities of the salt. A crushing operation could be added in order to expose internal impurities to washing, if coarse salt is not required. The impurities removed are insoluble, calcium, magnesium, sulfate and organic. The washed salt is stockpiled for further processing and/or shipping. The salt is processed on site or shipped by truck, rail and/or vessel to its final destination. Solar Salt Technology

Solar technology applies the required techniques for designing the correct ratio of areas required as Concentrators and Crystallizers for obtaining high productivity of saturated brine, high productivity of salt and salt quality. Solar technology aids in reducing the production cost and increasing production and salt quality. Lower production cost and higher salt quality are those elements needed to aggressively compete in the salt market. High salt productivity and salt quality from the solar salt operation is obtained by implementing an efficient brine management to optimize saturated brine production from the

33

concentration

area

and

optimize

salt

production

in

the

crystallization area. The quality of the solar salt is defined by content of sodium chloride, production of premium coarse salt and salt whiteness. An efficient brine management in concentrators and crystallizers and an effective washing operation generates the production of high quality salt. Solar Salt competes with mine salt and evaporated salt. It has been demonstrated that a solar salt operation can produce the various types of salt that mines and/or evaporated plants can supply with the added advantage of a low production costs.

Bitterns and By-Products

The remaining brine discharged from the crystallizers is called bitterns. Normally the bitterns contain salts of potassium, magnesium, bromine, sulfates, chlorides, etc. By using solar evaporation techniques and process, by-products-salts are crystallized by fractional crystallization, mixing of brines, salt leaching, solar re-crystallization, etc. These operations are much less expensive than the conventional methods to produce, say potassium sulfate and/or potassium chloride. If a market is available, recovered. some by-products could be also economically

34

TYPICAL OPERATIONS INVOLVED IN A SOLAR SALT OPERATION

Pond System Brine Management Solar Salt Production Harvesting Washing Quality Control and Research Salt Stockpiling and Reclaiming Ship-loading Solar Salt Processing & Packaging Warehousing & Salt Products Distribution

35

36

SALT USES

Salt can be used as a feedstock to produce other compounds of industrial and commercial interest. Chlorine compounds of commercial importance include hydrochloric acid, and sodium hypochlorite. Important sodium compounds include sodium carbonate (soda), sodium sulphate, baking soda, sodium phosphate, and sodium hydroxide. Some of these are described in more detail below. When an electric current is passed through a strong solution of salt in water, electrolysis occurs and three products are formed: chlorine (Cl2) sodium hydroxide (NaOH) hydrogen (H2)

37

Hydrogen and chlorine gases can be explosive when mixed and therefore need to be stored separately. All three products are useful individually and they can also be combined together to make further products. Sodium hydroxide and chlorine combine to form sodium hypochlorite solution (NaOCl), which is widely used in the home as domestic bleach; a stronger solution of sodium hypochlorite Under is used as a dairy and industrial sodium disinfectant. different reaction conditions,

hydroxide and chlorine will react to form sodium chlorate (NaClO3); this is produced as white crystals that can be highly explosive or inflammable if mixed with organic matter; solutions of sodium chlorate are widely used as herbicide.

Hydrochloric acid (HCl) is manufactured by dissolving hydrogen chloride, formed by buring chlorine gas in hydrogen, in water. This process produces very pure hydrochloric acid, which can be used safely in the food and pharmaceutical industries. Salt is widely used as a preservative for meats and is employed in some refrigeration processes, in dyeing, and in the manufacture of soap and glass. Because they are transparent to infrared radiation, salt crystals are used for making the prisms and lenses of instruments used in the study of infrared radiation.

38

Chlorine is used in the manufacture of PVC, which is contained in a vast number of products including blood bags and the tiny catheters used to help keep premature babies alive. In some areas, groundwater passes through chalk or limestone before arriving in reservoirs, rivers and abstraction wells. The calcium and magnesium carbonates picked up by the water are not normally harmful, but cause lime-scale to build up inside kettles, Boilers and water heaters, making them inefficient and more costly to run. Both industrial and domestic water can be softened

economically, using an ion-exchange Process. In its original state, the ion exchange polymer or resin carries sodium ions on its surface; this has a strong affinity for larger, more highly charged calcium and Magnesium ions. When hard water passes over the resin, the sodium ions are displaced; as sodium salts are more soluble than calcium and magnesium. Although chemical and other methods can bring some control over hardness, only ion-exchange can remove the calcium and magnesium ions which cause it. When the sodium ions are exhausted, the hardness will reoccur but by passing a concentrated salt solution (brine) over the resin, the calcium and magnesium are displaced by sodium and the resin reactivated; this process is called regeneration. Regeneration is usually automatic, either when a certain volume of water has been used or at a set frequency, when the water

39

softener is out-of-use. In industry, several resin vessels are used and one is periodically taken off-line, to avoid interruption to production. In domestic situations, regeneration usually takes place early morning, or a twin tank system is used. Modern domestic machines are designed to be highly salt efficient. These require special grades of salt to optimize performance. The salt is very pure and larger than normal table salt, to produce brine quickly. Some machines use salt tablets, produced from compressed salt. Softened water is so effective in dishwasher operation that a softener is often built into the machine. The salt used should be of a dishwasher grade, rather than table salt grade. A major use of unrefined salt or rock salt (halite) is as a highway deicer. Weak brine solutions have a freezing point that is lower than water at about -4oC. In countries, where ground surface temperatures seldom fall lower than this temperature, salt can be used to prevent the build-up of ice on roads. Large quantities of salt are stockpiled by local authorities in such countries for rapid application as required depending on predicted weather conditions.

40

Capital Budget Model for Salt Harvesting Business.

(Jambusar ,Maliya, kandla)

41

Silent Features :
1. Bore well brine (sea water or ocean water).

2. Water is evaporated till reaching 24 degree Celsius it take approx 7 days.

3. 40000 MT (metric Tonnes ) per year in 750 acres ,i.e per Acre 54 Tonnes .

4. There are 12 bore well in 750 Acres . i.e 1 bore well for 63 Acres, 12 to 14 meter pipe , power 200 UP, Power consumes 13 lakh per Annum.

Salt Harvesting is Semi mechanized i.e Mechanical and Automatic (tucker /pock land/tractors ). 5. Approx 150 workers employed and paid 55 Rs per tone.

6. Salt harvesting season is 7 to 8 months in year Salt is sold within 15 to 20 Km area to major companies such as Gujarat Alkali, Reliance industries etc.

42

7. The present selling price of salt is 750 per metric tonne to (X) factory + Royalty 9 Rs per metric tones, sale tax Rs 2.50 per tonne.

Capital Budget for Salt Harvesting Business. Total Area 350 Acres. Production 20000 MT per Annum. Loan Amount :- 15000000 @ 13.5 % A.Capital Expenditure
Particulars 1. Land development and constructing Drainage for carrying bore brine @ INR 13500 per Acre. Amount 4725000

43

2. Cost on Machines :1. Transformer 200 HP (Diesel) - 1 2. Automatic Tracker 2 machines 3. Pockland 1 Machine. 4. Trucks - 2 5. Office & Residential building 6. Other 10275000 TOTAL COST (A+B) 150000000

Expected Profitability Model for per Metric tone Assumption Production 20000 MT in 350 Acres in first year A.Expenditure per Metric tonne
Particulars (i) Interest on loan Amount in per MT 102

(ii) Electricity 6 lakhs per year Wages

30 55

44

Administration & other exp Depreciation

63 50

Total expenditure per Metric tonne

300

B. Selling price per MT:- 750 PER MT .

Particulars 1.Selling price Amount in per MT 750

2.Less Total expenditure 3. Profit realization per MT

300 450

45

4.Total expected profit per year

9000000

(c) Revenue forecast for 3 years PARTICULARS Sales revenue 1 year 2 year 3 year 1ST YEAR 2nd year 3rd year

15000000 18750000 22500000

FEASIBILITY STUDY (BUSINESS MODEL )

SILENT FEATURE :Surat bavi near to Maliya (100 km from gandhidham) Company name :-Asapura Salt work Land in Acre :- 250 Acre Production :-30000Tones Per year. Owner name :-Jada (Rajastan) Brine :- Directly from sea .temperature of sea brine water 5 degree Celsius. Near to national high way . Time process for manufacturing salt takes :- 12 days in hot climate and 18 days in winter season. No of crops in one year :- 10 times in one year

46

No bore well required No electricity required. Land cost :- 4 cr (negotiable) Lease remaining till year :-2018 After completion of lease ,our company can continue for several year after every 10 year renewal If we want to sell the land to other party after 6 year ,the land may increase in double digit ie 8 crs to 10 crs and more .

Operation (profitability model ) Capital investment Sr. Partculars 1 Land 2. Machinery cost Hitachi-1 Tractor-2 Total

Amount in Rs 4 cr 28 lakh 6 lakh 4.34 cr

Interest on loan 4.34 cr @ 13.5%.

A. Selling price of raw salt per tone is 700 .

B. Expense

47

Fixed &varaiable i. i. Interest on loan @13.5 ii. labour iii. electricity per borewell iv. salary for manager v. maintenance & other Total expenses

Amont in Rs (per tone) 195 70 Nil 3 77 345

C. Profit realisation per tone (A-B) D. Total sales revenue(30000*700)per year E. Total profit on sales revenue(30000*355)per year

700-345 = 355 21000000 10650000

POTENTIAL FOR THE GROWTH OF SALT INDUSTRY .

India has very long coast line and out of that Gujarat Coast line is of 1600 Kms.

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 In Gujarat in addition to existing salt industry lot of Land available along the side of coast for developing more salt works. Climatic conditions are suitable for salt industry. Easy Availability of skilled labours Good Administration of our Govt. and their Corporation. Our low cost of production Govt. supports for critical infrastructure facilities. Minor Ports have loading capacity 5000 tons /day to 20000 tons /day in mid stream loading where as big port like Kandla have achieved the av. rate of loading of 25000 tons / day. We have a big advantage that ships of the capacity from 5000 tons to 100,000 tons could be loaded at our ports. There is potential for developing more ports as per requirement. In south India there is also a big port, Tuticorin close to salt manufacturing area. Now only 20% industries have gone for mechanization and modernization, 50% from balance can also go immediately. Average yield of salt works is only 100 tons per hectare. This can be increased to 300 tons per annum by adopting modernization.

OPPORTUNITIES

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The Salt based Industry is concentrated more in Gujarat. Total Saltconsumption for Industries is 6.5 million tons annum.

The New Chemicals Industries are coming up and existing units are going for major expansions; growth is 8%.

Export Market- 1) Quatar 2) Malaysia 3) Philippines 4) Japan 5) China 6) Vietnam 7) Indonesia 8) Nepal

Indias location is very suitable to supply salt to China, Japan, Middle East and to other Asian countries. India has potential to increase productivity as well as quality. Available manpower Wind Power-largest coastal line of Gujarat has potential to Generate 5000 MW through Wind Energy. The Salt Industry can make use of this energy jointly through associations. . Availability of good major and minor ports as well as of good anchor points.

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 To grab the developing market of Middle East. India is a net exporter of Soda Ash and emerging as a

significant regional player. The current low per capita Soda Ash consumption also shows tremendous growth potential over next few years. Unlike to world average of 56% consumption of Soda Ash by the glass industry, the Indian glass industry only consumes 25%. The major share is used by Indian detergents industry. Soda Ash uses in glass & detergents is 65%. Glass industry estimated to grow @ 7% and Detergent @ 4.5% over the next 4 years. Tightness in the global demand-supply situation expected There is good opportunity to increase export Low per capita consumption leaves a lot of potential to be tapped Despite the steep drop in duty rates over the years, the industry has been able to effectively compete with imports and is geared up for further reductions.

Growth of Soda Ash and Salt industry directly connected hence good growth in salt demand is expected.

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CONCLUSIONS & RECOMMENDATIONS Indias salt production can be increased considerably by achieving average yield of 300 tons per hectare and by developing available large areas in Gujarat. Salt quality required to be improved in general in all sectors small and big to feedgood quality salt to Indian Chlor-Alkali Industries as well as for export. Salt Industry has very good future hence new entrepreneurs should grab this opportunity

Annexure -1

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Details of salt department

Sr. no Name states of the Land under salt manuf acturin g. Already declare d surplus 1 Tamil Nadu 17471 61 12 118 11 1767 3 2 Andhra pradesh 3 4 5 Orissa West Bengal Maharashtra 8390 13061 11 2 47 3 359 87 243 17969 51 12 709 182 1892 3 8491 2 1371 0 6 7 8 9 Gujarat Karnataka Haryana Himachal Pradesh TOTAL 59353 180 27 831 359 620 6137 0 1860 469 133 3 5 4 12 2 83 1879 476 83 133 To be declared surplus Land under Dept.blg Land used for NMAY Land leased for other than salt manufacture Waste land Total land

Annex-2

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Annex-3

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Annex-4

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Annex-5

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Annex-6

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Annex-7 Mentioned below are the major equipments used is salt plants:

Raw Salt Hopper with EM Feeder

Screw Washer

Bucket Elevator

Wet Mill

Elutration Tank

Slurry Pump

Washing Tank

Agitator Assembly

Static Thickener

Belt Conveyor

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Iodine Dozing Pumps

Fluidized Bed Drier

Cyclone & Airlock Valve

Inlet and Exhaust Air Blower

Vibro-screen

Pin Mill

Blender

Product Silo

Received Salt Machine

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List of major salt manufacturer in Gujarat

1.NAHTA SALT & CHEMICAL PVT.LTD. We introduce ourselves as the one of the major manufacturer, exporter and supplier of Industrial Salt, Refine Free Flow and Iodized Salt unit of Vibrant Gujarat. Combined wealth of experience coupled with industry networking is what gives us an edge over others. Our highly reliable and most efficient staff has made us emerge as the most preferred name in the industry. With the focus on quality and good business ethics we have earned a prestigious position in this field. We manufacture high Quality Refine Free Flow Salt and various industrial grade Salt. Our Production unit carefully monitored the thickness of the salt and all the chemicals are ensured to be present in perfect ratios. The iodine concentration in Refine Free Flow salt is matched to ISO norms and ensure good health and provides remedy to iodine deficiency disorders. Address : Nahta House, B.B.Z. North-56, Zanda Chowk, Gandhidham-Kutch(Guj.)-370201 Ph. 02836-234022, 327002(O), Fax 02836-220581 Mobile - Suresh Nahta 09426217011 Year Of Establishment :1968 Mobile :09825255845 Email : nahtasalt@yahoo.com, info@nahtasalt.com, nahtasalt@salttradeindia.com 2.V.S.FORGINGS 65

V.S. Forgings have around 10 year experience in manufacturing of Tablet Salt / Salt pebbles / Water Softening Salt which made with special care so it dissolved perfectly.When it comes to "competence in salt matters", we are the number one address. Apart from excellent product quality, we guarantee our customers a rapid and reliable delivery at any time, and an always friendly and efficient service Address : 208/a TP 1 Lipton Street Ganga bazar Anjar - Kutch Phone: 02836 244110; Mobile: 09429082552 Year Of Establishment :1997 Mobile :09825281972 Email : visforg@gmail.com, visforg@salttradeindia.com

3.SHIV SALT SUPPLIERS

Leading trader of edible salt Address : Sahil Apartment Gandhidham-Kutch, Gujarat-370201 Year Of Establishment : Mobile :09825237382 We take this opportunity to introduce ourselves as NAHTA SEA BRINES to your esteemed organisation . We are one of the pioneer organisation in manufacturer and suppliers of all kinds of Salt in India Since 1968. Now our organization wants to bridge the gaps between India and all over the world with the shore up of such valuable clients. Time and consistency build loyalty towards our clients. Address : D.B.Z.-South-60, Near Muncipalti Office, Opp. Rotary Bhavan, Gandhidham (Kutch)-370201 Ph. 02836-222443, 327510 Year Of Establishment :1968 Mobile :09426218406 Email : info@nahtabrines.com, nahtabrines@salttradeindia.com, nahtasalt@gmail.com

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NAHTA SEA BRINES We take this opportunity to introduce ourselves as NAHTA SEA BRINES to your esteemed organisation . We are one of the pioneer organisation in manufacturer and suppliers of all kinds of Salt in India Since 1968. Now our organization wants to bridge the gaps between India and all over the world with the shore up of such valuable clients. Time and consistency build loyalty towards our clients. Address : D.B.Z.-South-60, Near Muncipalti Office, Opp. Rotary Bhavan, Gandhidham (Kutch)-370201 Ph. 02836-222443, 327510 Year Of Establishment :1968 Mobile :09426218406 Email : info@nahtabrines.com, nahtabrines@salttradeindia.com, nahtasalt@gmail.com

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