Business Ideas 2012- GALLIC ACID

CHEMICALS & CHEMICAL PRODUCTS

              

GALLIC  ACID

1.   INTRODUCTION


Gallic Acid is white or off-white crystalline powder.  Chemically, gallic acid is known as 3,4,5 trihydroxy  benzoic acid.  It finds primary use as the basic intermediate for the very important anti-bacterial drug-  Trim ethoprim.  Gallic acid esters have been in use as anti-oxidants, photographic developer, in tanning, in   testing free   mineral acids, dihydroxy acetone and alkaloids.  The tannins of the gallic acid type are used in the manufacture of ink.  The tannins are esters of gallic acid, available in myrobalan fruit pulp, bark, etc.  These tannins on  saponification yield gallic acid.
Relevant Specification.
Product conforms to available USP specifications and will be provided by NRDC at the time of technology transfer.


2. RAW MATERIALS 


Gall nuts, sodium hydroxide, sulphuric acid, ethyl acetate, activated carbon.


3. MANUFACTURING PROCESS


The process  to manufacture gallic acid from gall nuts involves decortication of the gall nuts, cooking and hydro-lisation of tannins, extraction of gallic acid with ethyl acetate, separation of gallic acid and the solvent distillation and purification.
The gall nuts are decorticated to separate the seed and flesh material.  It is then charged into a reactor where it is by passing steam through the  coils provided.  The mass is hydrolysed by sodium hydroxide. Small amount of sulphuric acid is also charged into the reactor for adjusting the pH to the requisite level. The hydrilysed tannins are then extracted with ethyl acetate in a counter current continuous extractor.  The extracts containing ethyl acetate and gallic acid are subjected to distillation in a jacketed reactor provided with condenser and receiver assembly. The distilled ethyl acetate is used for the subsequent batches.  The bottom residue, which is gallic acid, is charged  into another vessel and activated carbon is added to it.  The material is diluted by about  4 times and heated to 70ºC.  It is then filtered hot through a nutch filter. The filtrate is taken into a crystalliser and  it is cooled slowly by circulating water to the jacket.  The material is then centrifuged to separate gallic acid and the mother liquors.  It is then packed in drums for marketing.
Before setting up the unit clearance from State Pollution Control Board would be required.


4. MANPOWER REQUIREMENT : 20


5. PROJECT COST


A.   Fixed Capital                                                                                                                                                          

	(Rs lakh)
Land  &  building	9.70
Plant  &  machinery	18.00
Miscellaneous fixed assets	0.70
Preliminary & pre-operative expenses	2.25
Know-how & engineering fee	2.80
Contingencies	2.40
	35.85

 B. Working Capital

Particulars	(weeks)	(Rs lakh)
Raw material, consumables & packaging materials	4	2.49
Work-in-process	1	0.62
Finished goods	2	2.25
Receivables	4	4.50
Working expenses	4	0.52
		10.38

MEANS OF FINANCE


Working capital may be financed as: 

Bank finance	Rs 7.78 lakh
Margin for working capital	Rs 2.60 lakh

Project cost may be financed as:

Promoter's contribution	Rs 12.82 lakh
Term loan	Rs 25.63 lakh
	Rs 38.45 lakh

6. COST OF PRODUCTION     

	Rs lakh
Raw    material	30.64
Utilities	1.05
Salary & wages	4.32
Overhead expenses	4.60
Interest on term loan	4.23
Interest on working capital	1.28
Depreciation	2.65
	47.77

7. PROFITABILITY

Annual sales realisation	Rs 54.00 lakh
Annual operating expenses	Rs 48.77 lakh
Annual profit (pre-tax)	Rs  5.23 lakh
Return on capital employed	29 %
Break-even point	55 %

Market potential :

Gallic acid finds usage in a number of industries like pharmaceuticals, dyestuffs, chemicals, food processing, ink  manufacturing etc.

Production capacity :

Annual production capacity

15 tonnes

List of Plant, Machinery & equipment : 

1	Decorticator
2	MS/Lead lined reaction vessel with suitable gearbox
3	Plate and frame type filter press made of wood
4	Continuous  liquid/liquid extractor made of SS 316
5	Distillation assembly comprising SS 316 vessel
6	SS 306 reactor, jacketed with 3 HP motor and suitable gear box
7	SS 316 crystalliser, jacketed, pen type with 3 HP motor
8	SS 304 nutch filter
9	SS 304 centrifuge
10	Coal fired boiler
11	Water ring vacuum pump with motor
12	Cooling tower
13	Laboratory equipment
14	Workshop equipment
15	Fire fighting equipment
16	Insulation
17	Process pumps