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PROJECT REPORT
ON
|SEGMENTATION AND ANALYSIS OF ISO
PROPYL ALCOHOL (IPA) MARKET IN INDIA.}
A report submitted in partial fulfillment of
The requirements of
MBA Program of
ICFAI Business School
MUMBAI
SUBMITTED TO: SUBMITTED BY:
Prof. Radhamohan Chebolu Suman Sinha
Sr. Professor 08BS0003427
ICFAI Business School ICFAI Business SchoolMumbai Mumbai
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A REPORT
ON
SEGMENTATION AND ANALYSIS OF ISO PROPYL ALCOHOL (IPA)
MARKET IN INDIA.
By
SUMAN SINHA
(Summer trainee)
DEEPAK FERTILISERS
AND PETROCHEMICALS CORP. LTD
A report submitted in partial fulfillment of the requirements of MBA program of
ICFAI University, Dehradun
Date of submission: 20/5/2010
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1. Cover2. Title page.3
.
Authorization.4. Acknowledgement5. Table of contents6. Synopsis/ abstract/ summary7. List of illustration..8. Introduction.9. Main text.10.Findings/ conclusions/ recommendations11.Attachments12.References.13.glossary
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Authorization
This research paper entitled The Knowledge Level and Physical Performance of
the Residents of Barangay Bangcud Bukidnon Diagnosed with Schistosomiasis,
prepared by: SUMAN SINHA, student IBS Mumbai, in partial fulfillment of the
requirements for the title Summer Internship Program has been completed and accepted
for final evaluation.
Prof. Radha Mohan Chebolu
Senior Faculty
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Table of content
Authorization
Acknowledgements
Executive summary1. Introduction .
1.1.Overview1.2.Business structure
2. Technical detail2.1.A.P.I2.2.Formulation
3. Isopropyl alcohol3.1.Product specification3.2.Production3.3.Different grades of IPA3.4.Usage of IPA in pharmaceutical industry.3.5.Supply of IPA
4. Competitor analysis5. Market research
5.1.Purpose5.2.Scope5.3.Methodology
6. Industrial analysis7. Findings8. Segmentation9. Targeting the prospective customer10.Acquiring new business11.Outcome
11.1. Conclusion11.2. Recommendation
12.
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Executive summary:-
Iso propyl alcohol is a commodity product which is mainly consumed by pharmaceutical
industry for formulation, i.e reducing the concentration level of drug molecule and for
tablet coating purpose.
Introduction
The genesis of Deepak Fertilisers And Petrochemicals Corporation could be said to be in
the year 1970 when Mr. C. K. Mehta set up Deepak Nitrite Ltd (DNL), combining his
skills in trading and manufacturing. DNL grew by leaps and bounds, surpassing
expectations of all investors and also won many prestigious awards like the Sir P.C.Ray
award, for being the best Chemical Industrial unit in India.
In 1983, Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) started
commercial production of ammonia (in technical collaboration with Fish International
Engineers (USA) using natural gas as feedstock. This marked the fulfillment of a need for
lateral integration into the world of basic building block chemicals, premium fertilisers
and petrochemicals. At the time, this was India's only merchant ammonia manufacturer.
The International Finance Corporation initially supported this venture of Deepak group in
the form of equity participation in DFPCL.
The company undertook major expansion and diversification in 1989 to achieve forward
integration of ammonia and diversification in Methanol.
In July 1992, DFPCL commenced commercial production of Low Density Ammonium
Nitrate (LDAN), Nitro Phosphate (NP), Dilute Nitric Acid (DNA), and Concentrated
Nitric Acid (CNA).
This has resulted in a multi-product portfolio for DFPCL consisting of chemicals,
petrochemicals, fertilizers and other agri-inputs. To ensure an uninterrupted supply of
natural gas to its plant, DFPCL laid its own 43 km gas pipeline from the coastal fall point
of Bombay High to its plants at Tajola, thus becoming one of the first companies in India
to have its own gas pipeline.
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The Company has now diversified into specialty retailing with Ishanya, Indias largest
Design Centre and Specialty Mall for interiors and exteriors. This 5,50,000 sq.ft. project
is located near the hear of Pune and is home to 52 product and service categories in
interiors and exteriors.
DFPCL has a chemical storage terminal at Jawarharlal Nehru Port Trust (JNPT) to
provide support to its logistics management system and ensure a window to the world
trade in chemicals. It is in the process of adding new storage facilities for Ammonia,
Methanol and other products. The company also leases port storage capacities at Bombay
Port Trust and Vishakhapatnam.
Business structure:-
DFPCL's business can be broadly categorized into : -
1. Chemicals2. Agribusiness3. Specialty Retailing
Chemicals:-
This division of DFPCL manufactures Methanol, various grades of Nitric Acid and
Ammonia. DFPCL is one of the largest producers of Methanol in India, which in turn is
used to manufacture drugs, pharmaceuticals, DMT, pesticides, methylamines,
formaldehyde, etc. DFPCL is also one of the largest manufactures various concentrations
of Nitric Acid (60%, 68%, 72% and 98%). Ammonium Nitrate: The explosives division
manufactures Low Density Ammonium Nitrate, which is used for making Ammonium
Nitrate-fuel oil (ANFO), blasting agents and also emulsified ANFO (HANFO). DFPCL is
the largest manufacturer of ammonium nitrate in India (capacity expanded to 100.000 tpa
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in September2002), and the only one making prilled Ammonium Nitrate (AN). Their
products are used for open cast mining, underground metalliferrous mining and
construction Industry.
Agribusiness:-
This division of DFPCL manufactures 23:23:0 prilled Nitro phosphate fertilizers under
the brand name Mahadhan. DFPCL markets Mahadhan through a network of over 1000
dealers. Thanks to the company's rigorous adherence to quality, Mahadhan is one of most
widely accepted fertilizer brands not only in Maharashtra itself but it is warmly accepted
all across the country.
Specialty Retailing:-
Ishanya is India's first International Design Centre and Specialty Mall - a centre for
excellence in space design and the one-stop shop for interior and exterior products.
y For architects and interior designers, Ishanya is a platform to showcase their art,craft and vision to a targeted and discerning audience.
y For manufacturers and retailers of interior and exterior products, it's the perfectmarketplace to make the most of India's real estate and construction boom. For
homeowners, corporate shoppers and visitors, Ishanya will provide the ultimate
experience in shopping for the home.
Social Responsibilities: -
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The Company has been contributing towards social causes for nearly two decades. The
Deepak Charitable Trust (DCT) and the Deepak Medical Foundation (DMF) with the
support of DFPCL and Deepak Nitrite Limited are carrying on development activities for
society.DCT has been actively working in the area of mother and childcare. Through an
integrated network of women health workers the foundation has been imparting training
and communication on health care. Extending the activities on both sides, the Foundation
has catalyzed and supported the creation of Aanganwadis, and taken education to youth
on family planning. The Foundation is now working to curtail the spread of HIV / AIDS.
DFPCL takes an active interest in environmental protection. In addition to regulatory
requirements of the State Pollution Boards and Federation of Indian Industries, care is
taken to reduce pollution by incorporation of appropriate effluent handling disposal
systems.
Ishanya Foundation
The Ishanya Foundation is focused on Women Empowerment, Education and
Health. As its maiden project, the foundation started a Diabetic Centre at the Jahangir
hospital, Pune. The Ishanya Foundation Diabetic Centre is equipped with advanced
machines like Biothesiometer, Hand Doppler, and the RS Scan (foot mapping machine).
The centre offers a preventive, curative and research effort on diabetes. In its outreach
program, a number of diabetic camps and cataract operations were conducted free of cost
for the needy.
The Ishanya Foundation serves 27 villages around Taloja by offering free OPD check-up
by a team of doctors, trained medical and paramedical staff. It has started self help groups
to enable women save money and put it to right use, thereby gaining recognition and
respect in the society. Mobile libraries have been started in three schools in Taloja and
joyful activities are carried out for these children.
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A.P.I:- Full form of A.P.I is Active Pharmaceutical Ingredient. When a molecule is
synthesized at production unit, that molecule is synthesized in bulk with a concentration
level of 98-99%. This is the crude form of the drug so it needs to be further processed
before consuming. This crude high concentrated drug molecule is called Active
Pharmaceutical Ingredient (API). As it is produced in bulk so sometimes it is also called
bulk drug. The following diagram will illustrate the process of production.
We cant consume this high concentration level of drug; otherwise it will show reaction
in our body. So the formulation of this bulk drug is needed to make the drug as a
consumable one.
Formulation: - Formulation is a process to reduce the concentration level of the bulk
drug to a desired level. When we consume ciprofloxacin it is recommended in such way
ciprofloxacin 500mg that implies on 1000mg tablet ciprofloxacin molecule is of500mg
and the rest is additives (sugar, flavor etc). So we can see the end ciprofloxacin tablet we
consume has a concentration level of50%. The process of reducing 99% to 50% is called
formulation. The following diagram will illustrate the process of production.
Isopropyl Alcohol:-
Any drugmolecule. Ex-
Bulk drug of99%
Synthesized
IPA is used as solvent but it doesnt take part in
Bulk drug.Ex-ciprofloxacin
Tablet 50%concentration
Formulated
IPA is used as solvent but it doesnt take part in
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Competitor analysis:-
Market research:-
Purpose:-
The main aim of the market research is to fathom the depth of the IPA market in drum
pack as well as to track the market position of our brand with respect to our competitor.
The other purpose was to get the bifurcation of the IPA drum pack used in formulation
and coating with the respective customer name. Through the process we have come to
know that how we could acquire the competitors market as well as our shortfall where
we could develop ourselves to improve the overall business.
Scope:-
Deepak fertilizers is doing its business with all premier pharmaceutical and paints
company starting from Ranbaxy, Cipla, Cadila, Dr. Reddys lab to Asian paints. So the
scope of the study was wide in terms of sector; pharmaceutical, paints, pesticide sector.
As the main consumption of IPA is entitled to pharmaceutical sector so this sector is
given an extra care. In terms of geography location the customer of Deepak fertilizers is
spreaded all across the country. So the scope in terms of geography location is pretty
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wide, the entire country. As per the existing data the main consumption of IPA is coming
from Maharashtra followed by Gujarat, Andhra Pradesh, Karnataka and so on.
Methodology:-
The methodology followed for the market research is simple interview with a specific
format of questionnaire. To prove the authenticity of the data the research is divided into
two parts. In initial the data is collected through telephone or through any secondary
source. In next step the collected data is being verified by personal meetings with the
concern person in respective company. The data we wish to collect comprises of
1. Name of the company2. Address3. Contact no.4. Name of the concern person (Purchase dept.)5. Email id6. Consumption amount per month.7. Present brand using.8. Credit policy.9. Factory location.10.Consumption pattern. (seasonal or regular)
Total relevant customer found is 350 (aprox). Those were our population size on which
we did our market study. For our convenience we have divided the entire country into
four major parts.
1. North-East region.a. Delhi
b. Noidac. Punjabd. Himachal Pradeshe. Kolkata
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Segmentation:-
On the basis of our findings we segmented our total population (customer) in two
parameters.
1. Consumption wise.2. Geographic location wise.
0
2000
4000
6000
8000
10000
12000
2007-08 2008-09 2009-10 2010-11
(projected)
2011-12
(projected)
GROWTH RATE
GROWTH RATE
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Consumption with respect to competitor:-
Targeting the prospective customer:-
On the basis of the consumption level we filter 12 customers who could be our
prospective potential customer in future. By the process we want to acquire thecompetitors market as these prospective customers are the buyers of competitor brand.
For targeting a customer certain factors are considered to be the prime consideration.
1. The consumption level of the company (how much do the company consume IPA)2. The consumption pattern of the company. (seasonal or regular)3. Credit-worthiness of the company. (ability to pay the money)4. Type of the company. (privet, public or govt)5. Factory location.6. The credit term of the company.7. Market reputation of the company.
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Acquiring new business
Outcome:-
Conclusion:-
Recommendation:-