Hazardous Waste

Basic overview of the phenyl making business in India

Derived from the French word phenyl, the word “Phenyl” finds its root in the Greek word phaino, meaning ‘shining.’Basically, a strong germicide and disinfectant, phenyl, is used to kill germs and clean floors and surfaces. With a particular odour (usually pleasing), this liquid finds application in various sectors. Therefore, setting up phenyl making business in India is the need of the hour as it can yield innumerable benefits.

With the novel COVID-19 pandemic hitting almost all parts of the world, there is a high demand for phenyl from a hygiene point of view. But due to a lack of awareness about marketing, entrepreneurship, how to set up phenyl making business in India and availability, people prefer buying from elsewhere at high rates.

However, phenyl making businesses expected to yield high profits in years to come. The reason is that it has good local and international market potential. Also, it may be noted that this industry can be quickly established with low investment in the area.

Market overview of the phenyl making business in India

The disinfectants and surface cleanser market have grown to approximately Rs 5 billion yearly. This is the case if the multi-purpose detergents are excluded. In volume terms, the market is of about 9000 TPA, of which more than 60% is characterised by phenyls. The branded MNC-oriented phenyl manufacturing business market is more than Rs 2750 million and is flourishing at about 20%.

Different types of Phenyls

Phenyl Making Business yields the following types of liquid phenyl:

White Phenyl

A disinfecting agent made from pine oil, white phenyl is used as a cleaning product to kill bacteria and remove odours. This phenyl is made using an emulsifier to allow the oil to stably make a solution with water. A deodorant fluid, white phenyl, is used in bathrooms, hotels, restaurants, etc.

Brown or Black Phenyl

Usually dark brown or black, black phenyl is manufactured as a powerful disinfectant. This phenyl is often used in hospitals, hotels, military facilities, homes, and animal farms. Furthermore, a disinfectant, black phenyl, is used in drains, lavatories, and where microorganisms grow.

Though under phenyl making business, both the phenyls are prepared from pine oil, soap solution, and light creosote oil is found a bit extra in the black variant. For the unversed, creosote oil has carbolic acid, which imparts necessary germicidal properties. Moreover, both the phenyls are emulsion preparations.

Herbal phenyl

Besides these, a new variety of herbal phenyl is also available. This phenyl is trending nowadays as it is free from chemicals. It is made from natural ingredients, making herbal phenyl a preferred choice of many. This new addition to phenyl making business can add to its scope to flourish more.

Applicability areas of the phenyl

The first step in setting up Phenyl Manufacturing Business is knowing about its market potential and applicability. Phenyl finds its primary use in cleaning different toilets, accessories and floors in the corporate world, public areas, hospitals and household sectors.

So, the demand for phenyl depends on the applicability areas. For example, it is used more in urban areas than rural ones, so the demand varies accordingly. The demand for phenyl increases with an increase in the awareness related to health and cleanliness.

Documents and licenses required for setting up the Phenyl Making Business in India

One must know about the mandated documents and licenses to set up the Phenyl Making Business in India. Following is the checklist of the same –

• A trade license
• Consent to Establish (CTE) from the Pollution Control Board (PCB)
• Consent to Operate (CTO) from the PCB (Pollution Control Board)
• Certificate of incorporation by Registrars of Companies (ROC) under the Ministry of Corporate Affairs (MCA)
• GST registration
• License from the Drug Control Authority
• A detailed project report
• IEC (in case of import/export of phenyl)

Here’s the detailed process for obtaining these licences –

Trade License

A trade license is a document/certificate allowing the applicant to start a particular trade or business, like phenyl making industry, in a particular location/area. Issued by government agencies, the license ensures that the trade/business is being carried out adhering to all safety standards issued by State Municipal Corporation. From a safety point of view, it also ensures that the residents are protected from any health hazards.

Documents required for obtaining trade license for phenyl making business –

• Applicant’s ID proof
• Address proof of the business
• Aadhaar card
• Memorandum of Association (MOA)
• PAN of the company or PAN of the individual (in case of proprietorship)
• Certification of Incorporating
• A latest municipal property tax receipt if the premises is owned, else lease document or consent letter of the owner
• Certified layout plan of the office
• NOC of the neighbours (nearby property owners)

Consent to Establish (CTE) for setting up phenyl making business

A No Objection Certificate (NOC) and Consent to Establish (CTE)_[1] must be obtained by the owner of the phenyl making business as per the Air Act 1981and Water Act 1974. CTE is obtained before starting the establishment of the site.

Documents required to obtain consent to establish are –

• Demand Draft for fees
• Site plan
• Manufacturing details
• Approval from Govt. and local bodies

Consent to Operate (CTO)for phenyl making business

The owner of the phenyl making business must apply for Consent to Operate before any project, industry, or activity begins. This consent certificate is mandated under the Air (Prevention & Control of Pollution) Act, 1981 and the Water(Prevention & Control of Pollution) Act, 1974. Usually, the State Pollution Control Board (SPCB) issuesCTO for 15, 10 and 5 years in the green, orange and red categories, respectively.

Documents required to obtain consent to operate are –

• Application form
• Fees for CTO
• Undertaking/Affidavit
• Authority letter
• Capital investment certified by C.A.
• Compliance report of previous CTE/CTO/CGWA
• Proof of remittance of water cess
• Monitoring report
• NOC for the abstraction of groundwater
• Copy of authorisation

Certificate of incorporation by Registrars of Companies (ROC) under the Ministry of Corporate Affairs (MCA)

For a phenyl making business to exist in India, it requires a certificate of incorporation issued by the ROC. This certificate is granted after the completion of various statutory requirements.

Documents to be submitted to the ROC for Certificate of incorporation are –

• Articles of Association (AOA)
• Memorandum of Association (MoA)
• A declaration by an authorised person confirming that requirements relating to registration have been adhered to
• A pre-incorporation agreement for appointing managing directors/directors

Procedure for obtaining a certificate of incorporation by ROC

1. The owner of the phenyl making business must file annual forms with the ROC
2. The forms must be attached with the required documents mentioned above.
3. After authenticating the documents, the ROC will add the company’s name to the register of companies.
4. Ultimately, ROC will release the certificate of incorporation.

Note: It must be noted that the Registrar, along with the certificate of incorporation, also grants a certificate of commencement of business. A public limited company is mandated to get this certificate before starting the business. Furthermore, the ROC can refuse to register a company on several grounds. Also, the fees for filing forms and various documents with the ROC vary depending on the company’s authorised share capital.

License from the Drug Control Authority

According to the Drug Act, liquid phenyl falls under a drug category. So, it is vital to obtain a license before starting the phenyl making business. A drug Licence might not be needed in the case of white phenyl preparation, but it is mandatory in the case of black phenyl. The reason is that black phenyl contains carbolic acid, which is harmful to the skin.

Documents required for the Drug License for phenyl making business

• Articles of Association (AOA)
• Memorandum of Association (MOA)
• LLP agreement
• ID proof of director/partner/proprietor
• Site plan
• Documents related to premises
• Proof of depositing fee (Attach a copy of challan)
• Proof of availability of storage space
• Affidavit regarding non-conviction of director/proprietor/partner and the firm
• Cover letter with designation and name of the applicant
• The affidavit from the competent person/registered pharmacist
• Applicant’s qualification certificate
• Declaration form in a prescribed format

Procedure for obtaining a drug licence

1. To obtain a drug licence for phenyl making business, an applicant must visit the official website of the drug controlling authority.
2. S/he should then upload the application along with the required documents and fee.
3. A drug inspector visits the premises to verify the documents.
4. The drug licence is granted after that.

Details about the setup to start the phenyl making business in India

Knowing about the set-up of the phenyl-making business well in advance is a good idea. First comes first, so make sure you have a detailed project report in hand along with the financials before starting the business. You may also need to consider the following –

• Figuring out the required area
• Layout planning
• Selecting a proper location
• Check for electricity supply
• Arrange for water supply

Choose the correct machinery based on the specific product and desired production output.

The following machinery is essential for Phenyl Manufacturing Business –

• Planetary mixture
• Mixing Vessels
• Liquid filling machine
• Balance and measuring equipment
• Storage Vessels
• MS Tank
• Furnace with diesel pump and platform
• Cap sealing machine
• Hydrometer

Note: The BIS has introduced IS-1061/1982 specifications for white and black phenyl. As per the specification, phenyl should stand without separation for a minimum period of six months. Additionally, it should quickly dissipate with water to form a thick milky white emulsion on dilution.

Conclusion

With the changing lifestyles in urban and rural areas, particularly from the hygiene and cleanliness point of view, the use of phenyl has increased tremendously in the past. It is also evident that the increase in its demand is directly proportional to an increased level of consciousness towards hygiene and health. Also, phenyl becomes an essential requirement, especially during the summer and rainy seasons. Thus, starting a phenyl-making business in India is quite promising and can yield lucrative outcomes.