Evyap Sabun Malaysia Sdn Bhd Building Chemistry with You 20 th - - PowerPoint PPT Presentation

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• Evyap Sabun Malaysia Sdn Bhd

Building Chemistry with You 20th August 2014

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Oleochemical Production & Value chain

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SE Asia 48% India 9% China 20% Japan 2% South America 1% North America 9% Europe 11%

Global Splitting Capacity

• The SEA can boost of the largest

splitting capacity in the world.

• The basic oleo chemicals are the

building blocks for downstream or second generation oleo chemicals.

• Oleo chemicals have numerous

commercial applications like soaps, cosmetics, pharmaceuticals, rubber, plastics, confectionaries and many more.

Source :www. Worlpalmoil.com & Internal

Oils & Fats Oils & Fats Fatty Acid Fatty Acid Methyl Ester Methyl Ester Fatty Alcohol Fatty Alcohol Glycerine Glycerine

• Bath Soap
• Metal Soap
• Sorbitan Esters
• Glycol Esters
• Mono/Di/Tri Glycerides
• Alkonamides
• Sugar Ester
• Methyl Ester Sulphonates
• Biodiesel & Lubricants
• Alkyl suphate
• Alkyl phosphate
• Alkyl Amide
• Alkyl Glucoside
• Glycol Ester
• Polyglycerine
• Monoglyceride

Vegetable Oil 86%

Animal Fat 14%

World Production of Oils & fats

Oils & Fats Production (2013/14) (193 Mio Tonnes)

• Palm Stearin & Tallow

Present Scenario…

4 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 2005 2010 2013 2018-20 MTs

Global Supply &Demand for Oleochemicals

Supply Demand 500 1000 1500 2000 2500

Announced capacity expansion in different regions (2012 - 2015)

Fatty Acids Fatty Alcohols

• The Oleochemicals is growing at a CAGR of 5% for

the period from 2013 to 2018.(in terms of both demand and production)

• Fatty Acids, demand is growing at CAGR 6% , the

increase in demand due to expansion of soap noodles market & fatty alcohol.

• Fatty Alcohol,expected to grow at CAGR 5.6% and

will expand to 4.8 Mio Tonnes by 2020

• SEA leading region in terms of production estimates

and annual growth of 6.6% per annum

Source : LMC International

• 2,000.00

4,000.00 6,000.00 8,000.00 10,000.00 12,000.00 14,000.00

Fatty Acid Fatty Alcohols Glycerine

MTs.

Global Vs Asia

(Production of Fatty Acids, Fatty Alcohols & Glycerine ,2013) Global Asia

World Oleochemical Capacity (Region-wise)

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• The oleochemical started as Tallow based, in the process of development, plants started utilizing the

more competitive sources of raw material available to them, like Palm Oil.

• Palm Oil produced primarily in Malaysia & Indonesia is the most competitive source.
• The tallow based plants can still be found in Europe, US, Japan (*)
• Global Market Shift
• 2,000.00

4,000.00 6,000.00 8,000.00 10,000.00 12,000.00 14,000.00 16,000.00 1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 ROW 100.00 100.00 100.00 190.00 190.00 190.00 190.00 190.00 190.00 190.00 250.00 250.00 SA

• 100.00

100.00 100.00 170.00 250.00 330.00 330.00 380.00 400.00 400.00 Asia 440.00 1,244.00 2,914.00 3,940.00 4,395.00 6,020.00 6,650.00 6,975.00 7,335.00 7,720.00 9,515.00 11,100.0 Europe 1,500.00 1,800.00 2,295.00 2,295.00 2,295.00 2,345.00 2,345.00 2,345.00 2,075.00 2,075.00 2,075.00 2,175.00 NA 1,300.00 1,600.00 1,700.00 1,800.00 1,800.00 1,740.00 1,740.00 1,740.00 1,740.00 1,740.00 1,740.00 1,740.00

Asian Dominance

Source : LMC International

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Asian Regional Oleochemical Capacity

1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 India 220.00 220.00 460.00 460.00 460.00 475.00 485.00 490.00 590.00 590.00 750.00 1,030.00 China 116.00 116.00 284.00 510.00 570.00 1,550.00 1,830.00 2,030.00 2,110.00 2,220.00 2,360.00 2,480.00 Japan 104.00 108.00 370.00 370.00 370.00 370.00 370.00 370.00 370.00 370.00 370.00 370.00 South East Asia

• 800.00

1,800.00 2,600.00 2,995.00 3,625.00 3,965.00 4,085.00 4,265.00 4,540.00 6,035.00 7,220.00

• 2,000.00

4,000.00 6,000.00 8,000.00 10,000.00 12,000.00 MTs

2005 2006 2007 2008 2009 2010 2011 2012 2013

North America

1,800.00 1,800.00 1,740.00 1,740.00 1,740.00 1,740.00 1,740.00 1,740.00 1,740.00

Europe

2,295.00 2,295.00 2,345.00 2,345.00 2,345.00 2,075.00 2,075.00 2,075.00 2,175.00

Asia, of which

3,940.00 4,395.00 6,020.00 6,650.00 6,975.00 7,335.00 7,720.00 9,515.00 11,100.00

South East Asia

2,600.00 2,995.00 3,625.00 3,965.00 4,085.00 4,265.00 4,540.00 6,035.00 7,220.00

Japan

370.00 370.00 370.00 370.00 370.00 370.00 370.00 370.00 370.00

China

510.00 570.00 1,550.00 1,830.00 2,030.00 2,110.00 2,220.00 2,360.00 2,480.00

India

460.00 460.00 475.00 485.00 490.00 590.00 590.00 750.00 1,030.00

South America

100.00 100.00 170.00 250.00 330.00 330.00 380.00 400.00 400.00

Rest of the World

190.00 190.00 190.00 190.00 190.00 190.00 190.00 250.00 250.00

Total

8,325.00 8,780.00 10,465.00 11,175.00 11,580.00 11,670.00 12,105.00 13,980.00 15,665.00

Points :

• By 2013 the demand for
• leochemicals has reached

approx 15 Mio Tonne and expected to reach 18 Mio.Tonnes by 2018/20

• Major share in Asia by

SEA, followed by China & India

Source : LMC International

Structural Changes & Evolution

Upstream integration Geographical and structural shift w.r.t Production & Demand Growth of Biodiesel & expansion of Glycerine market Rationalization and consolidation in Asia Pacific continues. Diverse strategy of plantation players (Regional vs Global Oil Players) Fiscal incentive remains major driver of investment Advent of fracking technology in US & stable crude oil prices , the

synthetic oleochemical producers play significant role

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Challenges for Oleochemical producers

Commoditization of products Volatility of Palm Oil Trade Barriers Higher margins in up stream products Technical manpower Competition from Substitutes (Petroleum based products) Producers outside tax incentive zones will have to cut down on

margins to remain competitive

Sustainability & Traceability

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Way Forward

Saudi Arabia Mexico South Africa India Turkey Indonesia Argentina Brazil Australia USA Canada South Korea Spain UK France Japan Germany Italy Russia China 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 15 20 25 30 35 40 45 50 GDP per Capita vs Median Age G-20 GDP per Capita, $K M e d i a n a g e / y e a r s

‘POOR, BUT Y OUNG’

‘POOR AND AGEING’

‘RICH BUT OLD’

GDP per Capita = country GDP value relative to USA = These economics are 79% of global GDP ($70t)

Seek opportunities

down the value chain

Focus in the growth

markets

Strategic tie ups

Income Levels & Age Profiles

Emerging Growth Markets

Source : Internal

**Global Soap Market

Future of Oleo Business

• Asia, Middle East & LATAM are going to drive

growth in consumption.

• Emerging economies are future market.
• This trend is likely to continue due to

demographic reasons.

• Growth in Personal care market & Soap &

Detergent market will drive oleochemical demand

• ROW region is moving towards

surfactant/alcohol driven consumption.

• Growth of Oleo Chemicals is estimated to

be in the range of up to 9 to 11%. Considering the volume growth in the emerging markets.

Share of population under age 30 by Region :2030 Middle East & Africa 61.70% World 44.70% Latin America 43.70% Asia Pacific 43.70% Australasia 37.60% North America 36.50% Western Europe 32.60% Eastern Europe 32.06%

Source : Euromonitor

Way Forward

Oleochemical companies going downstream – calls for

• Govt. encouragement

Differential pricing on oil (raw material) for oleochemical

producers

FDI in FMCG sector, which will help increase domestic

demand

Support by promoting subsidiaries/tax incentives for

investment in R&D, Innovation in downstream sector

Develop Manpower

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Evyap

• Founded in 1927.
• One of the largest soap making capacity in the world with

350,000 Ton per year.

• Exporting to more than 100 countries.
• Market leader in Turkey, Russia & MENA regions.
• Operates in Soap, Personal Care, Cosmetics, Hygiene Care &

Glycerin.

• Operates

in multi location plant in Turkey, Egypt and Malaysia.

• Started commercial port called Evyap Port in 2003.
• Employs 5,000 people.

Our Foray in South East Asia

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Proximity to a more sustainable feed stock Backward integration for cost

• ptimisation & quality

Changing customer preference towards vegetable base Well developed infrastructure & ease of doing business Opportunities in the emerging Asian Markets

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EVYAP SABUN MALAYSIA SB

Now Commissioning…..

Splitting Distillation Fractionation Neutralization Saponification Hydrogenation Oleic Acid Personal Care Product

• Largest integrated

Oleochemical & Personal Care complex.

• State of art production facility
• Production capacity of

400,000 Mts.

• Investment of USD 200 Mn.

Evyap Sabun Malaysia Sdn Bhd Jalan Nibong 4,Tanjung Langsat Industrial Estate,81700 Pasir Gudang, Johor, Malaysia

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