Palm Oil Internet Seminar

Special Focus - India:
India's Oleochemicals Market - Potential for Palm Oil
By: Mr. Shashishekhar Lovekar

Educational Qualifications:

• B Tech (Chemical Engineering) from the Indian Institute of Technology (IIT), Bombay (1981-85)
• Masters in Management Studies (MMS) from JBIMS, Mumbai University (1988-90)

Work Experience:

20 years of experience (1996 – 2016) as a Product Manager for Surfactants at Godrej Industries Ltd, Mumbai. Surfactants included Alpha Olefin Sulfonate (AOS), Sodium Lauryl Sulphate (SLS) and Sodium Lauryl Ether Sulphate (SLES) as well as ethoxylates and waxes. Responsibilities included handling key accounts, marketing and sales of the surfactant product range in the domestic as well export markets and sourcing and buying lauryl alcohol, lauryl alcohol ethoxylates and alpha olefins. Sourcing of lauryl alcohol and ethoxylates involved tracking prices and availability of palm oil and palm oil derivatives. 9 years of experience (1985-88 and 1990-96) in manufacturing and technical services.

India is one of the fastest growing large economies in the World today. Its large and rapidly growing Oleochemicals industry depends to a large extent on imported vegetable oils, of which more than 60% comprises of palm oil. However, other oils such as Soybean, Sunflower and Rapeseed oils are also growing in importance.

In order to assess the prospects for non-edible Palm Oil consumption in the India, this paper surveys the industries which process oleochemicals, the major players involved in these industries and their basis for evaluating different sources of raw materials. This paper also surveys the different segments of the Oleochemicals industry in India such as toilet soaps, fatty alcohols & their derivatives, fatty acids & their derivatives and glycerin, and their future prospects.

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Questions & Answers (4) :
Tey Poh Leng
2 years ago
Hi Shashishekhar, Any export duty imposed for LAE 1 Mole and LAE 7 Mole from India? What is the duty if yes?
Shekhar Lovekar:
As I had replied to you earlier, import duty on LAE 1 mole is 0%, and on LAE 7 mole it is 5% from ASEAN countries and 7.5% from non-ASEAN countries.
2 years ago
Tey Poh Leng
2 years ago
Hi Mr Shashishekhar, 1) What are import duty or Tax Structure for Oleo-chemicals importation into India? 2) Since 1214 alcohol 85k Mt per year went into produce SLES, SLS & Ethoxylates. Is Indian Ethoxylates producer produce 1-Mole and 7 Mole types of Ethoxylates? What is the annual quantity of 1-mole & 7 Mole to be produced per year? c) Who are the main players supplying 1-mole & 7 Mole Ethoxylate in India?
Shekhar Lovekar:
As I have mentioned in my reply to Alexis, import duties on LAE 1 mole and 2 mole, as well as SLS and SLES (from ASEAN region) are 0%. Import duties on fatty alcohols from ASEAN are also 0% (from non-ASEAN countries 7.5%). Import dutis on Ethoxylates higher than 1 & 2 moles as 1618 ethoxylates are 5% (7.5% for non-ASEAN countries). The ASEAN region therefore is competitive on 1214 alcohols as well 1 & mole ethoxylates. Yes, several local ethoxylators produce 7 mole and higher ethoxylates, difficult to estimate annual quantities.
2 years ago
2 years ago
How about ethoxylators and sulphonators outlook in India?
Shekhar Lovekar:
Import duties on Lauryl Alcohol Ethoxylate (LAE) 1 mole and 2 mole are 0%, hence regular imports are coming in. As result, local ethoxylators (except captive plants) have lost business. However, on LAE moles 3 and above, duties are 5% from ASEAN and 7.5% on non-ASEAN countries, hence local ethoxylators are competitive. Local supply of EO is competitive, hence local ethoxylators benefit. Though import duties on sulphonated products such as SLS and SLES from ASEAN are 0%, local sulphonators are competitive. Imports of these products into India are negligible.
2 years ago
Joanne Pun Yin
2 years ago
Any plans to do higher value adding? What are the current possible market trends there?
Shekhar Lovekar:
Dear Joanne, Value addition on palm oil would involve production of Toilet soaps, Fatty acids, Fatty Alcohols, Esters, for biodiesel, as well as for other specialty applications. Other value added products would be carotenes, Sterols, Vitamin E etc. My presentation gives details of toilet soaps, fatty acid and fatty alcohol production along with their derivatives. Production of biodiesel in India from Palm Oil is not economical owing to import duties on palm oil, absence of mandates etc. However, several companies in India produce specialty esters for applications such as food additives, cosmetics and Pharmaceuticals, and other applications. The India laundry detergent market is still largely based on manual washing which puts a premium on foaming, hence surfactants such as Methyl Ester Sulfonates (MES) and Alkyl Polyglucosides (APG) are used in limited volumes (MES) or not used at all (APG). Liquid detergent market is still quite small relative the overall powder / cake market, though growing fast, hence use of ethoxylates and ethoxy sulfates in this application is limited. With the rapid growth of the India economy, their usage is bound to increase. Production of other value added chemicals from palm oil such as carotenes, sterols, vitamin E etc is limited owing to the low demand.
2 years ago
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