Wednesday, May 28, 2008

we do not want to do financial analysis when we see dreams

In 1897 a Canadian-born chemist Herbert Henry Dow extracted bromine from brine solution using his newly find out method. Initially the company depended on bleach and potassium bromide which were extracted. But now Dow Chemical is operating with seven major operating segments.

In 2007

It was a company with

Revenue = ▲$53.513 Billion USD (2007)

Net income = ▲$2.887 Billion USD (2007) [This is equal to a half of Sri Lankan export earning]

Employees 46,000 (2007)

In every Sri Lankan Salterns brine solution is pumped back to ocean. But it is very valuable input for chemical industry and we are neglecting a huge profit making potential. Brine is electrolyzed in the chloralkali process to make sodium hydroxide, chlorine and hydrogen, as well as the hypochlorite and chlorate salts on an industrial scale.

You can imagine the wealth we can earn with this chemicals using following figures

Sodium Hydroxide –

50lb Bag of Sodium Hydroxide PELS can be sell in range of 94 $ (usd) [ aprox :Rs 9600]

55lb Bag of Sodium Hydroxide Flake can be sell in range of 103 $ (usd) [ aprox :Rs 10400]

Chlorine can be sold at $220 to $240 per ton

Hydrogen @ $2.60/kg [This is quite old data]

I know chemical business is not a simple one. We need complex market analysis and ecomomic analysis in feasibility study.

“But we do not want to do financial analysis when we see dreams.” This is the answer which were given to one of our student by Indian professor. That student ask about financial feasibility of biogas system.

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