final report for submision

8/8/2019 Final Report for Submision

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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:-

final report for submision

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