1. Presented By: Mukesh Bhuta Vice Chairman - IPUA Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

2. IPUA’s Role: Ozone Cell, Ministry of Environment & Forest, Government of India is preparing HCFC Phase-out Management Plan (HPMP) which may be published in due course. The Indian Polyurethane Association with an endeavor to best serve the interests of the member community and the Indian Polyurethane Association has been assisting Ozone Cell in this HPMP programme. Which is to……  Identify all the sectors of foams where HCFCs are being used  Survey the number of enterprises consuming HCFCs directly or indirectly.  Estimate the total consumption of HCFCs in India for the years 2007-2012 more importantly for 2009-2012.  Create awareness amongst the industry representatives, about the phase out scenario.  Suggest strategy which can facilitate a successful implementation of HCFCs phase out.  Recommend regulatory policies which can be industry friendly rather than restrictive. Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

3. India PU Foam Sector Present scenario: Main PU Foam sectors consuming HCFCs are:  Domestic Refrigeration / Appliances  Commercial Refrigeration  Continuous Panel  Discontinuous Panel  General Insulation  Spray / In-Situ  Thermoware  Integral Skin  Thermo Plastic Foam Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

4. Alternatives Blowing Agents: Current & Futuristic Most promising alternative technologies for Indian Foam Sector are: CompoundMW Physical State Boiling Point ( o C) Flash Point LFL/UFLLambda 25 o C (mW/mk) ODPGWP HFC-134a102Gas-27NoneNone01300 HFC-245fa134Liquid15NoneNone130820 HFC-365mfc148Liquid40-243.4/13120840 n-Pentane72Liquid36-491.515011 Iso-Pentane72Liquid28-511.414011 Cyclo-Pentane70Liquid49-71.513011 Methylal76Liquid42.3-182.2/19.90 Very Low Methyl Formate 60Liquid31.5-195/2010.70 Very Low FEA-1100-DupontNALiquid3310.7NoneNA0 HBA-2-HoneywellNALiquidNANANoneNANegligible AFA-L1-ArkemaNALiquidNA10NoneNoneNegligible Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

5. Application: Domestic, Commercial Appliance & Themoware Domestic Appliance Key requirements:  Foam insulation properties ( K-factor)  Fast productivity Commercial Appliance Application:  supermarket counters  horizontal freezer  Visi-coolers  food service equipment Thermoware Key requirement:  Fast productivity  Low cost Blowing Agent Options : Zero ODP: HFC -134a low level, HFC -245 fa & HFC -134a/HFC- 365, Ecomate Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

6. Application: Discontinuous & Continuous Building Panels Application  Cold store  Building Panel  Telecom Shelter Key requirements  Low k-value  Faster Productivity  FR Blowing Agent Options : Zero ODP: HFC -134°, HFC -134a/HFC -365, HFC- 245fa, Ecomate Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

7. Application: General Insulation & Spray Applications include: Walls, crawl spaces, enclosed attics, roof decks Key requirements  Good Foam mechanical properties  Good Foam insulation properties  Low Moisture vapor resistance  Low Flame spread  Low Smoke generation Blowing Agent Options : Zero ODP: HFC -134a, HFC 134a & HFC -134a/HFC- 365, HFC -245fa, Ecomate Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

8. Application: Integral Skin Applications:  steering wheel  furniture (armrest, headrest, seat) Key requirements:  Skin formation  Aesthetics  Good Abrasion resistance Blowing Agent Options : Zero ODP: HFC -134a, & HFC -245fa/365, Ecomate Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

9. Considerations for selection of alternative technologies: VIEW POINTREQUIRMENTS Environmentally Acceptable ODP – 0 Lower GWP Higher Energy Efficiency Safety Non-Toxicity Non-Flammability High- Volume Resistivity System Durability Thermal & Chemical Stability Material Compatibility Easy Management Reasonable cost/Commercially viable Technically Proven Easy Handling Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

10. India PU Foam Sector Present scenario: In India today HCFCs are being used by more than 450 units in processing of PU Foams and other foams. This foam sectors is dominated by large number of small and medium sized enterprises. Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

11. The consumption split of HCFCs across various foam sector: 20092010 Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

12. IPUA Final Analysis: Total estimated consumption of HCFC (mainly 141b) is as under: Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11 Note: Above are survey figures, they can be more and may be known when the stakeholders submit their actual data’s

13. IPUA Final Analysis: The consumption split across various industry sectors is estimated as under: Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

14. Suggestions & Recommendations: The industry sector groupings for phasing out of HCFC have been arrived at, based on the following criteria: Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

15. Suggestions & Recommendations: Sector Consumption Size of sector in terms of HCFC consumption e.g. (Phase out initiatives in sectors consuming larger quantities of HCFC would aid in delivering accelerated phase out of HCFC’s) Competitive Intensity Number of Players in each of the sectors (Sectors having fewer players are likely to be more organized with large companies that have strong financial standing & technical capabilities to execute phase out projects) Substitutes/Alternatives Sectors where mature, proven and cost effective alternatives for HCFC phase out are available Growth rate of the sector Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

16. Suggestions & Recommendations: Based on the selected criteria we have grouped the various sectors in order to formulate different strategies timelines for each of the groupings. The table below summarizes these groupings: Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

17. Suggestions & Recommendations: Recommended Strategy & Policy Changes: The IPUA recommends the sector strategies in 2 phases: Phase 1 Strategy A Multi-pronged approach is being suggested as under. One for sectors falling under Group 1 i.e. Domestic Refrigeration and another for sectors falling under Group 2 i.e. Continuous Panel and Integral Skin Foam. Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

19. Suggestions & Recommendations: Phase 2 Strategy For the other sectors i.e. Discontinuous panels, General Insulation, Commercial Refrigeration & Thermoware we observe that an overall strategic approach covering the entire sector is not feasible at the moment due to: Lack of proven cost effective alternate technology Large number of users making it difficult to manage the transition that is equitable to ensure a level playing field Smaller consumption levels and slow growth rates Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

20. Suggestions & Recommendations: Phase 2 recommendations: Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

21. Mentioned below are certain fundamental recommendations across both phases: Stakeholder Workshop on HPMP – 21 st / 22 nd October’ 11

22. THANK YOU