Market Study on Activated Carbon Carried Out by CP Consultants, New Delhi

Introduction

Activated carbon is a non-graphitic form of carbon, which could be produced by

activation of any carbonaceous material such as coconut shells, bamboo, wood
chips, sawdust, coal, lignite, paddy husk etc. The process of activation is carried
out in two stages. The raw material is first carbonized and then activated either
by chemicals or by steam to derive the highly porous structure.

The two main parameters relevant to the performance of the activated carbon
are namely, surface area and pore volume or structure. As to the shape of
activated carbon, there is a difference between powder, granular and pelletized
qualities. Based on suitable molecular size, the pore volume limits size of the
molecules that can be adsorbed whilst the surface area limits the amount of
material, which can be adsorbed.

Uses of Activated Carbon

A wide variety of activated carbon products are available exhibiting markedly
different characteristics depending upon the raw material and activation of
technique used in their production. In selecting the activated carbon it is
important to have a clear understanding of both the adsorptive and physical
characteristics of the material in order to optimize the performance capabilities.

Activated Carbon of three grades namely powder, granular and pelletalized

finds hundreds of different applications. By chemical activation, predominantly
powder activated carbons are made and these qualities are mostly used for
wastewater treatment. Granular products and pellets used for gas purification
are predominantly made by gas steam activation. To cite some examples from
the numerous applications: decolourisation of sugar and sweeteners, drinking
water treatment, gold recovery, production of pharmaceuticals and fine
chemicals, catalytic process, off gas treatment of waste incinerators, automotive
vapour filters, colour/odour correction in wines and fruit juices.

Field of Application
In its numerous applications, activated carbon represents a number of
different functionalities:
Adsorption: the most well known mechanism, through physical
adsorption or chemisorption.
Reduction: removal of chlorine from water is based on chemical
reduction reactions
 Catalysis: activated carbon can catalyze a number of chemical
conversions or can be a carrier of catalytic agents.
Carrier of biomass: support material in biological filters.
Carrier of chemicals e.g. slows release applications colourant:

The sector wise applications of various grades like powder, granular and
pelletized are given Table 1.1

Sector-wise applications of Activated Carbon

Grade Sector
Powder Activated Carbon Vegetable oils, fats, sugar, water treatment,
pharmaceuticals, fine chemicals and food
products.
Granular Activated Carbon Automotive canisters, air purification,
chemical and pharmaceutical industry.
Pelletized Activated Carbon Solvent recovery, Catalyst applications etc.

Present Manufacturing Capacity in India

The activated carbon industry consists of more than 50 units spread countrywide
most of which are in small-scale industrial sector (SSI Sector). Of the total
number of units in operation, only 10 to 12 units cater to the national market
while the other serve the local or regional markets. In general activated carbon is
manufactured in the northern region from wood charcoal (mostly made from
pinewood) whereas in the southern region, it is made from charcoal of the hard
shell of coconut.

The total installed capacity of the industry is presently estimated at about 40,000
tonnes per annum and production is put at around 30-35,000 tonnes, which
includes purified regenerated carbon.

Production
Due to paucity of reliable data on the production of activated carbon, the
estimates have been arrived at by corroborating the views of experts with the
available data on the capacity utilisation, consumption data by industry group
and available production figures of the manufacturing units surveyed. The units
are mostly in the unorganised small-scale sector. The production is estimated at
34 thousand tonnes for the year 2001-02, which includes purified regenerated
carbon. The annual growth in the production of activated carbon during the past
five years had been found around 12%.

Consumption
According to an estimate for 2001-02, the consumption of activated carbon was
the highest in vegetable oils (73.2%) followed by pharmaceuticals (6%). Industry
wise consumption of activated carbon is given as follows: -

Industry Wise Consumption of Activated Carbon

Industry Consumption Share (%)

(Tonnes)
Pharmaceuticals 1,968 6.0
Plasticisers 1,314 4.0
Glucose/Dextrose 1,168 3.5
Monohydrate Sorbitol
Vegetable Oils 24,100 73.2
Miscellaneous sector 4,380 13.3
Total 32,930 100

The domestic market for activated carbon is fast expanding with rapid growth
of several end user industries. The demand from the vegetable oil industry –
the largest consumer of activated carbon is 24,000 tonnes. The capacity
utilisation ratio is reported to around 85%. In such circumstances effected by
higher demand as compared to shorter supply, end user industries have to
depend partially on the imports and partially on the lower consumption of
activated carbon at their units.

Import & Export

Available statistics on imports and exports reveal that there were almost growing
trends during the past five years’ period, 1998-99 to 2002-03 showing the highest
figures in 2002 – 03.

Imports on the one hand declined by about 38% in 1999-2000 over the previous
year from 848 tonnes to 532.7 tonnes although there was an increase of 14% in
value terms. The highest growth of 52% in volume of imports was recorded in
2002-03 over the pervious year. France maintained his position as the leading
supplier of activated carbon accounting for 24.5% of total value of imports in
2002-03 followed by USA and Germany with their shares of 17% and 13%
respectively in the same year. Other prominent suppliers of activated carbon
include China, Indonesia, Spain, Japan, Korea (South), Philippines, U.K and Sri
Lanka.

Exports on the other hand recorded spectacular growth in quantity as well as in

value exports. In 1998-99 the exports of activated carbon rose from 283.8 tonnes
to 6459.1 tonnes in 2002-03 registering an increase of more than 23 times. Similar
trend was observed in the value of exports which spurted from Rs 112.6 lakhs in
1998-99 to Rs 2579.3 lakhs in 2002-03.
About 53% of value of export is contributed by U.K, South Africa, Germany and
U.S.A. Other principal buyers of Indian manufactured activated carbon include
Australia, Belgium, Malaysia, Japan, Sri Lanka, Netherlands, Sweden and
Senegal accounting for 25% of total exports from India.

Export Potential
The encouraging performance achieved in the exports of activated carbon from
the level of 283.8 tonnes in 1998-99 to 6459.1 tonnes in 2002-03 has generated
ample potentials for exports. With the world market growing at the rate of 11-
12% per year and considering various sophisticated end use applications of
activated carbon such as in gas market, solvent recovery, petroleum refining etc,
the international market is expected to grow fast and hit the target of 8000 tonne
within the next few years.

Demand Supply Gap

The present demand comprises of internal consumption of 32,930 tonnes plus
export demand of 3,260 tonnes amounting to 36,190 tonnes. The growth in
internal demand is likely to be above 10% considering global concern for safe
drinking water, an emerging field so far India is concerned. As mentioned earlier
the export market is also expanding. China today is exporting over two lakhs
tonnes in the global market. It is observed that present installed capacity just
matches the demand scenario.

Pricing
Although the pricing system should be adopted in direct relation to factory costs,
over lead etc but a significant factor will be its competitiveness. The price
structure of major competitors has to be carefully analysed vis a vis own
manufacturing cost and market demand. The present ruling price of activated
carbon varies between Rs 50-70/ kg.