Project Modified Guar
Project Modified Guar
Guar seed is produced in Pakistan, India, USA, South Africa, Malawi, Zaire and Sudan
region mainly. India constitute about 72% -75%, Pakistan 22% to 25% and 2% -3%
goes to rest of the total production. Guar is versatile kind of product with its multifunctional properties due to which many sectors are having benefits of it.
India has well established supply network right from the Guar seed collection passing
through the conversion processes till its end use (farm to fork). They monitor its future
market prices and they ensure that the supply of seed remain smooth throughout the
year due to which prices remain under their control.
Worlds market for guar gum is estimated to be around 150,000 160,000 tons/year,
70-75% of which is produced by India and Pakistan. The USA is the largest consumer of
guar gum with an annual consumption of 45,000 tonnes which represents 25% of world
trade. Germany & Japan consume another 23% between them with the UK, Denmark
and the Netherlands combining take further 22% of world trade. The world guar market
is a mature one and increasing steadily (>2% per year). The area of growth is in Asia
and South America as standards of living increase resulting in the increased
consumption of processed food.
Pakistan is also producing good quality guar and its allied products that cater both
domestic and international market. But supply of the seed is purely based on the
behavior of the stockiest and the rumors prevail to the prices. Pakistani manufacturers
purchase seed in the bulk quantity which has both positive and negative impacts.
Debate does not end here, supply reduces (during the sowing season) than the demand
and stockiest hold guar seed stock, prices of guar seed go up and Pakistani
manufacturer become uncompetitive as compared to the Indian processors while
situation become vise-versa during the harvesting season.
Guar seed is processed into splits and further into powder form. This powder is known
as Guar Gum Powder which is mainly used in Cosmetics, Food, Pharmaceuticals,
Nutraceutical, paper pulp manufacturing, Oil well drilling (Fracturing) and in other
Industrial Sectors.
Since India has genetically modified larger part of the overall growth of seed to get high
viscosity products for non-food sectors i.e. Oil-well drilling and mining sectors. Therefore
Pakistan has an opportunity to keep hold on food sectors of international and domestic
markets but there are guar gum substituents like Xanthan, CMC, Carrageenan, Gum
Rosin, Gum Arabic and Agar are available. Guar gum substituents are strengthening the
product rivalry and thinning the margins of guar gum profit margins. One of the major
weaknesses of guar gum product is its high demand and low supply globally.
So the concept is to open new avenues through the diversifications in its allied products
and the derivatives of guar. One of the most commonly used form of guar derivatives
and prime ingredient of Shampoos, soaps, creams, hair gels, other cosmetics, mud
forming ingredient for oil well drilling and paints is modified guar which is still not being
produced in the Pakistan. This modified guar is imported from Denmark, Brasil, USA
and China etc. while there are few manufacturers of modified guar available
internationally.
Therefore, in order to cater Pakistani and international modified guar market, there is a
good opportunity to have a first mover advantage by setting up its manufacturing facility
in Pakistan.
http://www.nmce.com/files/study/guarseed.pdf
a) Introduction
http://www.guarglobal.com/opportunity/guar-global-markets
http://www.pakchem.com.pk
http://www.guargum.biz/guargum_global_market.html
Guar gum is an emulsifying, binding, thickening, viscosifying and texture providing
agent. Its good inter-molecular binding properties reduce melting rate and crystal
formation in ice-creams, water and ingredient separation in juices, ketchups and
mayonnaise, texture and binding in textile printings, water-gel during drilling mud
formation, strength and smoothness in long extruded noodles, thickening, binding and
texture in soaps, shampoos, hair-gels and in various creams and meat processing to
increase its shelf-life. This binding property increases with the increase in the viscosity
of guar gum powders.
Application of guar gum increased when world started to overcome future energy crises
and oil-well drilling or fracturing was quadrupled. Its good binding property creates good
gelling and creates ease in drilling.
CH OH
OH
O
HO
OH
O
H2C
O
OH
HO
O
O
H
HO
O
HOH2C
1.3.2
number of chemically modified guar gums. On average three hydroxyl groups are
available for derivatization on D-mannose or D-galactose sugar units in guar
gum. The maximum theoretical degree of substitution (DS) in such molecule is
three. The substitution of hydroxyl groups with ethers such as hydroxylpropyl will
allow side groups extension which may change the solubility and other
characteristics of the guar gum. The molar substitutions (MS) is defined as the
average number of hydroxyl bearing substituents per sugar unit and can exceed
three due to the additional availability of hydroxyl groups.
The most widely known derivatives of guar gum (Table 1.1) include:
CarboxyMethylGuar (CMG), HydroxyPropylGuar (HPG),
CarboxyMethylHydroxy- PropylGuar(CMHPG).
Table 1.1 Guar Gum Application Patterns
Type of Derivative
Structure of
Substituent
Hydroxypropylguar (HPG)
Ionic
Charge
-CH2-CH(OH)CH3
Nonionic
Carboxymethylguar (CMG),
-CH2-COO- Na+
Anionic
Carboxymethylhydroxypropylgu
ar
(CMHPG)
-CH2-COO- Na+
Anionic
-CH2-CH(OH)CH3
Source:
http://etd.lsu.edu/docs/available/etd-06022005225849/unrestricted/Bahamdan_dis.pdf
Blend of Guar Gum to synergize their Properties & their Application:
Sr
.
Product
Form of
gum
Function
FOOD
Ice Cream
Blended
Guar Gum
Liquid egg
Blended
Improves consistency
Guar Gum
C
Blended
Guar Gum
Blended
Guar Gum
Guar Gum
Binder
Water ices
Guar Gum
Stabilizer
Bakery fillings
Guar Gum
Blended
Guar Gum
Thickening agent
Blended
Guar Gum
Binder
Icing stabilizers
Guar Gum
Stabilizer
Cheese
Blended
Guar Gum
Stabilizer
Salad dressing
Blended
Guar Gum
Stabilizer, thickener
Guar Gum
PHARMACEUTICALS
Treated
Guar Gum
Treated
Guar Gum
Binder
Microencapsulation of drugs
Treated
Guar Gum
High resorpitivity
Gastrointestinal disorders
Treated
Guar Gum
Laxative Property
Guar Gum
Dry binder
Dietetic compositions
Guar Gum
Malnutrition treatment
Lozenges
Guar Gum
Guar Gum
Suspending agent
Blended
Guar Gum
Disintigrent &binder
MEDICINAL
Dietary fibre
PHP Guar
Gum
Protective effect
Mixed in diet
Guar Gum
Mixed diet
Guar Gum
Dietary fibre
PHP Guar
Gum
Hypocholesterolmic agent
COSMETICS
Shampoo prep./Creams
Cationic
Guar Gum
Thickener agent
Guar Gum
Hair setting
Guar Gum
Thickener agent
PETROLEUM WELL
DRILLING
Oil bore
CrossLinked Guar
Gum
B
Guar Gum
Rotary drilling
Guar Gum
Fracturing solution
Guar Gum
Oil bore
Guar Gum
Drilling
Guar Gum
Thickener
Petroleum wells
Guar Gum
Fracturing fluids
Guar Gum
Well stimulator
Guar Gum
Gelling agent
Drilling mud
Guar Gum
Thickening agent
Fracturing well
Guar Gum
Gelling agent
Drilling fluid
Guar Gum
Guar Gum
Guar Gum
Thickening agent
PAPER
Additive sizing
Guar Gum
Paper/paper board
MODIFIED
Guar Gum
Paper making/Make-up
powders/detergents
Cationic
Guar Gum
Paper making
Guar Gum
EXPLOSIVES
Explosives gel
Guar Gum
Blasting agent
Guar Gum
Increases viscosity
Blasting slurry
Guar Gum
Thickening agent
Explosives mixture
Derivative
Guar Gum
Thickening agent
Gel explosives
Guar Gum
Gelling agent
Extrudable primer
Guar Gum
Increases viscosity
Gel explosives
ANFO Guar
Gum
Gelling agent
Slurry explosives
Guar Gum
Thickening agent
Nitroalkane explosives
DERIVATIV
E Guar Gum
Thickening agent
BUILDING
Plaster
Guar Gum
Thickening agent
Concrete
Guar Gum
Water proofing
Guar Gum
Foam stabilizer
FIRE FIGHTING
Treated
Guar Gum
Treated
Guar Gum
Dispersions
Treated
10 PHOTOGRAPHY
A
Processing solution
Guar Gum
11 COAL MINING
Treated
Guar Gum
12 ORE MINING
A
Iron scrap
Modified
Guar Gum
Guar Gum
13 TEXTILES
A
Textile print
Treated
Guar Gum
Stabilizer
Guar Gum
-------------
Polyester printing
Treated
Guar Gum
Thickener
Printing fluid
Treated
Guar Gum
Textile printing
Treated
Guar Gum
THICKENER
14 AGRICULTURE
A
Insecticidal comp.
Guar Gum
Guar Gum
Prevention of granules
Poultry
Guar Gum
Poultry
Guar Gum
Guar Gum
15 SHOE INDUSTRY
Ceramics articles
Guar Gum
Guar Gum
Electrical insulator
17 ELECTRICALS
A
Cable cores
18 TOBACCO
A
Tobacco products
Guar Gum
Adhesive
Tobacco sheet
Guar Gum
19 ANALYTICAL
A
Selective resins
Treated
Guar Gum
Beads
Treated
Guar Gum
Purification of lectins
Gel filtration
Treated
Guar Gum
Chromatographic separation
Modified
Guar Gum
Modified
Guar Gum
Distempers
Guar Gum
Binder, thickener
Guar Gum
Clarifier
21 MISCELLANEOUS
A
Production of sodium
carbonate
B
Aluminium reflectors
Guar Gum
Guar Gum
Reduction of resistance
Guar Gum
Immunosorbent
Guar Gum
Mosquito coil
Guar Gum
Flocculation or Water
Treatment
Modified
Guar Gum
Flocculating Agent
Source:
http://guargum.com.au/media/Guargum_Uses_derived_and_modified_Guar_gum.pdf
b) Background
Global Production of Guar Seed:
Pakistan and India are two major countries produce around 95% - 97% of guar seeds of
whole worlds production. Pakistan produces 23% - 25% approximately of total.
Due to lack of statistical monitoring system of commodities like India do, companies
directly conduct field surveys and generates their reports with the help of farmers
similarly PakChem has been doing such surveys and generating their internal reports
since 1963. PakChem has conducted guar field survey for 2014 2015 and prepared a
production report of 6.5 lakh bags approx. in Pakistan (1 bag=93.31 kgs).
Pakistan and India are the major sources of Straight form of guar gum. Before 2010
guar gum mainly used in food and pharma sectors. After 2010 India & US have made
tremendous efforts in developing a new avenues in Oil drilling sector. On the other hand
energy crises were pushing up shale gas exploration (oil well drilling process) globally.
Due to guars unique and excellent workability, its consumption was quadrupled from
2011 till early 2013 and a gap was occurred between high demand and low supply, this
imbalance made guar gum more expensive guar seed bag of Rs.3500 per 93.31Kg
went up to Rs.9000 per 93.31Kg. Whereas finished guar gum rates in international
market went up to $12000 per MTon from $2000 per M Ton.
Problem statement
There is a huge consumption of modified guar in Cosmetics, Shampoo & soaps, Paints,
textile dyes for reactive and dispersive printings, within the Pakistan and abroad, at this
stage Modified guar is not being produced in Pakistan.
Reason for using Modified Guar instead of Straight guar is due to its good
intermolecular bonding which stabilizes visco-thermal properties and shielding effect
which provide ease in processing during more than 100 C of temperature whereas
straight guar start loseting its properties between 60 - 90 C. Modified guar has also
processing properties under high temperatures 200-250C during deep well
fracturing/drilling.
Companies import modified guar outside from Pakistan at 4 times more prices for the
above applications.
MANUFACTURING FACILITY MODIFIED GUAR
Suggested site: Port Qasim
3.
1.
2.
1.
2.
3.
4.
5.
6.
1.
2.
By Plough Reactor
Grinding Equipment
Flaker
Ultrafine Grinder
Flake Dryer
Flash Dryer:
Dryer Duct
Cyclone
Bag Filter
Hot air generator
Blower
Rotary Valve
Roto Shifter Blenders:
Nauta Mixer
Ribbon Blender
Steam Boiler (Non IBR)
Process Water Tanks
Plough Reactor:
For achieving of high density guar gum, plough reactor plays an important role. The
prehydrated guar splits are dumped in to the reactor and reacts with some chemicals in
batch operation of blending.
Flaker
The soaked splits, which has reasonably high moisture content, will be passed through
Flaker to take them.
Some process need only crushing of the material to meet requirement of coarse
material or to feed smaller sized material to another grinder. Two hardened rolls rotate
towards each other.
Duct Dryer
The flaked guar split will be predried in duct dryer.
Flash Dryer
Flash drying is a continuous drying plant used for drying of wet cakes and pastes by
disintegrating it into fine powder and dried by hot air.
The short residence time of one to three seconds requires that the moisture that should
evaporate is truly surface water and that the particles in the feed cake are completely
dispersed in the drying air. Otherwise, the larger particles in the feed material may
require a more extensive drying time than the smaller particles in order to reach the
desired moisture content.
Ultra-Grinder Crushed guar splits can be easily grind in ultrafine grinder. The grinder
can grind the material with generation of as much less amount of heat.
Roto Shifter
This is very efficient equipment for screening of powder product.
e)
Literature review (Source to be consulted for information /data /description
with citation of each paragraph)
f)
Research methodology
A. Secondary research for Domestic and International market:
http://www.prnewswire.com/news-releases/guar-gum-market-worth-97-billion-by-2019289178531.html
http://www.marketsandmarkets.com/Market-Reports/guar-gum-market-177796677.html
Guar Gum Market by Grade (Industrial, Food, Pharmacy), Food Grade by Function
(Thickener, Stabilizer, Gelling, Fat Replacer, Coating), Application (Bakery,
Confectionery, Dairy, Meat & Poultry, Beverage, Sauces) & Region - Global Trends
& Forecasts to 2019
By: marketsandmarkets.com
Publishing Date: January 2015
Report Code: FB 3104
http://www.penford.com/companycenter/contact
http://www.marketsandmarkets.com/Market-Reports/hydrocolloid-market-1231.html
Hydrocolloids Market by Type (Gelatin, Xanthan, Carrageenan, Alginate, Agar, Pectin,
Guar, Locust Bean, Arabic, CMC), Source, F&B Application, Function (Thickener,
Stabilizer, Gelling, Fat Replacer, Coating) & Geography - Global Trend & Forecast to
2019
By: marketsandmarkets.com
Publishing Date: October 2014
Report Code: FB 2845
Cationic
Guar Gum
Thickener agent
Guar Gum
C Hair setting
Guar Gum
Thickener agent
Now the price of modified guar is more than four times that of straight guar and
approximate ex-factory (FOB) price is $2500 - $2700 per MT depending upon prevailing
prices of Guar Seed. So, $10,000 - $ 10,800 per MT will be the price of Modified guar
which will become more expensive when they will import it from China, Germany and
Turkey etc. the freight charges and insurance will add on $65 to $90 per MT.
As I have already mentioned it earlier that Guar seed only grown in India and Pakistan.
While the requirement of Modified guar manufacturers is being fulfilled through India
and Pakistan. As a matter of fact that the price of modified guar gum is derived through
the aggregation of profit margins on straight guar gum charged by the suppliers from
India or Pakistan and the profit margins charged by the modified guar producers. An
import duty is another factor which makes it expensive. Thus it makes sense to the end
users of modified guar in Pakistan can purchase it directly from Pakistan.
EXPECTED REVENUES:
Estimated minimum annual revenue from P&G is around $25,000,000 and
PKR2,525,000,000 (exchange rate $1=PKR101 as of 29/04/2015)
2. Samsol
Farhan Arshed
[email protected]
Samsol uses Behentrimomium Chloride and Hydroxymethyl cellulose in their
shampoos, Hydoxypropyl trimomium chloride guar can substitute the both alone.
Localization of ingredients make supply network of companies cost effective and
efficient. Estimated consumption is around 5 MT/annum.
3. Olivia
03002828078 salman sb chemist
[email protected]
They import 40 60 ashland bags of 25 Kg each of Modified (Cationic) guar per annum
which is around 3 MT. Two more variants are in development phase whose launch is in
June 2016, where modified guar to be expected 1.5 MT per annum.
4. Unilever Pakistan
Unilever foods is one of the biggest consumers of food grade guar gum (E-412). Now
modified guar is halfway through its application as far as supplier registration is
Modified
Guar Gum
Modified
Guar Gum
C Distempers
Guar Gum
Binder, thickener
Few years back they used to use straight guar gum in the manufacturing of Paints
but due to low thermal-viscous properties they switched over imported modified
cellulose. Modified cellulose provides high viscosity pick up which gives good
strength to the paints during manufacturing and after its final application on the
walls.
Modified guar equal working properties as compared to the Modified celluloses
1.
2.
3.
4.
5.
Treated
Guar Gum
Stabilizer
Guar Gum
-------------
C Polyester printing
Treated
Guar Gum
Thickener
D Printing fluid
Treated
Guar Gum
E Textile printing
Treated
Guar Gum
THICKENER
INTERNATIONAL PROSPECTS:
AZELIS GLOBAL LOCATIONS (http://www.azelis.com/en/)
Azelis is a leading global speciality chemicals (including modified guar gum for
hair and skin care cosmetics) distributor. They provide a diverse range of
products and innovative services to more than 20,000 customers. Our in-depth
local knowledge is supported by an international structure and value-added
services including high levels of technical support and tailored solutions.
DENMARK
FINLAND
FRANCE
ITALY
JAPAN
LATVIA
GERMANY
GREECE
HONG KONG
LUXEMBOURG
NETHERLANDS
NORWAY
RUSSIA
SERBIA
SLOVAK
REPUBLIC
SPAIN
SWEDEN
SWITZERLAND
HUNGARY
INDIA
POLAND
PORTUGAL
TURKEY
UKRAINE
AUSTRALIA
AUSTRIA
BELGIUM
BULGARIA
CANADA
CHINA
CROATIA
CZECH REPUBLIC
IRELAND
ROMANIA
UNITED KINGDOM
CHINA:
GUANGRAO LIUHE CHEMICALS CORP., LTD. (http://chinaguargum.com/)
(Modified Guar Gum Distributor)
Address :
EAST OF GUANGRUI ROAD(SHICUN),GUANGRAO ECONOMIC
DEVELOPMENT ZONE
Ji-Ning Wonder Trading Co.,LTD
Economc Development Zone,JiNing City,ShanDong Province,China
INDONESIA:
PT. TIGAKA DISTRINDO TIGAKA (http://www.pttdp.com/)
IRAN
SEPIDAN DRILLING COMPANY SERVICES (http://www.sepidan-co.com/)
They supply mud to oil well drilling companies. High thermo-viscous guar gum is
also used in the formation of mud for deep wells.
JAPAN
Morishita Jintan Co.,Ltd (http://www.jintanworld.com/english/index.html)
THAILAND
DAIKA (Thai) Inc.
Modified & straight Guar gum distributor in Thai market.
GERMANY
NEUPERT INGREDIENT GmBH
Modified and straight guar gum distributor in Germany since 1920. 100 -120
MT/month.
GLOBE-CHEMICALS
Modified and straight guar gum distributor in Germany having 60-80 MT/month.
KSA
M.A.Al Azzaz Est.
Al Khobar 31952, Saudi Arabia
Modified Guar for carpet printing 20-30 MT/month
Some of the above mentioned companies are purchasing straight form of Guar
gum from PakCkem and modified guar application seems halfway through. This
is enough quantity to set-up modified guar manufacturing facility in Pakistan.
Distributor in Indonesia:
1. PT. Tegaka Distrindo Perkasa
Distributor in Germany:
1. ACT Germany
Distributor in France:
1. Alliance Gum Industries
Distributor in Thailand:
1. Daika (Thai) Inc.
Distributor in Turkey:
1. Azelis Turkey
Distributor in Saudi Arabia
1. Al-Azzaz
Distributor in Malaysia
1. Nita Impex Sdn. Bhd.
2. JGG Indutsries - Perlis, Malaysia
Oil and Gas Sector for High visco-thermal applications:
1. Schlumberger
2. Halliburton
They import 10 to 20 MT per month depending upon their requirement. And fulfill the
requirements of Pakistan Oil-well Drilling companies in Pakistan.
Sample size for domestic market is as follows;
I will interview to those customers who are individually importing this material directly.
1. Proctor & Gamble Pakistan
2. Samsol
3. Olivia
4. Unilever Pakistan
5. L Oreal
6. Reliance Paints Pakistan
7. Berger Paints Pakistan
8. Nippon Paints Pakistan
h)
i)
Recommendation
j)
With the reference of Table 1.1 Guar Gum Application Patterns, there is a huge potential
where marketing efforts may enhance modified guar application in several dimensions.
Few industries are given below;
1. Ceramics and Plaster of Paris manufacturers
2. Paper Industry
3. Disinfectants and cleaners Industries
4. Ply wood coating manufacturers
5. Glue manufacturers
6. Shoe Polish manufacturers
By Ahsum Haleem
B.E. Polymers
MBA in Corporate Management (Marketing)
M. Sc in Petroleum Technology
[email protected]