The Hindu Business Line : Membrane Tech, DuPont tie-up to benefit Chemfab

CHEMFAB Alkalies Ltd will derive some financial benefits from the marketing agreement between its associate company Membrane Technologies Ltd, and DuPont.

Under the agreement, DuPont will buy the hollow fibre membranes that Membrane Tech produces. Chemfab Alkalies will earn fees by providing technical and after-sales service support to DuPont's customers.

Chemfab and Membrane Technologies Ltd are promoted by Dr C.H. Krishnamurthy Rao, a Singapore-based NRI, who also runs a company called Dr Rao Holdings in Singapore. Dr Rao holds an international patent for hollow fibre membranes, which are used to purify brine (salt water) before it is fed into the chambers to produce caustic soda and chlorine.

The membranes are more efficient and less costly than the conventional methods of brine purification, which is by the use of a series of filters, Dr Rao told Business Line recently. The membranes are produced in Chennai, by Membrane Technologies, a closely held company.

According to Mr Vishnu Desai of E.I. DuPont India Pvt Ltd, the global potential demand for the membranes could be estimated at $80-100 million.

Since the membrane-method is both efficient and cheap, and because the membranes are sold through DuPont, MTL expects its sales to grow substantially, Dr Rao said, while not wanting to guess future turnover. MTL is a Rs 20-crore company today.

Caustic soda manufacturer Chemfab Alkalies, being the first-user of the membranes and therefore the company that validates the products' efficiency, could also get a first-user fee, company sources said.

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