fine chemicals of thirumalai chemicals ltd

M a l i c A c i d - T h e l a u n c h o f h i g h p r i c e s u b s t i t u t e f o o d c h e m i c a l i n I n d i a a n d s u c c e e d e d

2010

FINE CHEMICALS

MALIC ACID

CHANDA

IDEAL PARTNER FOR YOUR CHEMISTRY NEEDS

BUSINESS SCHOOL OF DELHI (AICTE APPROVED)

28/1 Knowledge Park-III

Greater Noida

POST GRADUATE DIPLOMA IN MANAGEMENT

A PROJECT REPORT ON

FINE CHEMICALS (ESPECIALLY MALIC ACID)

Being a project report born out of summer internship and

submitted in partial fulfillment of the academic requirements for

THE POST GRADUATE DIPLOMA IN MANAGEMENT

During the academic years 2009-11

in

MARKETING

OF

BUSINESS SCHOOL OF DELHI

(AICTE APPROVED)

Carried out at

THIRUMALAI CHEMICAL LTD.

By

Chanda kumari

Under the guidance of

External Guide: Internal Guide:

Ramesh Kumar Rajesh Kumar

(Regional manager) (HOD of Marketing Department)

Thirumalai Chemicals Ltd.

New Delhi

BUSINESS SCHOOL OF DELHI (AICTE APPROVED)

28/1 Knowledge Park-III

Greater Noida

DEPARTMENT OF MARKETING

CERTIFICATE

Certified that the project work entitled FINE CHEMICALS is a bonafied work carried out by

Chanda Kumari in partial fulfillment for the award of degree of Bachelor of Post Graduate

Diploma in Management in Marketing of the Business School of Delhi, Greater Noida

during the year 2010.The project report has been approved as it satisfies the academic

requirements in respect of Project work prescribed for the Post Graduate Diploma in

Management.

Signature of the Guide Signature of the HOD Signature of the Director

Name of the Student

Chanda Kumari

External Viva

Name of the Examiners Signature with date

1.

2.

3.

EXECUTIVE SUMMARY

This project is all about Malic Acid which is the part of Fine Chemical. My project explains the pricing, marketing and competitors analysis of Malic Acid. Malic Acid has launched as a substitute of Citric Acid with high price but it shows unbelievable market growth. There are many applications of this chemical in different segments of products like – Food Pharmaceuticals Agriculture Industrial Applications

MALIC ACID When I did survey about Malic Acid I found these facts: Commercially Malic Acid has used as a substitute of Citric Acid. The specific uses of Malic Acid are in soft drinks, fruit juices, dry beverage products, candies etc. Malic Acid has launched as a substitute in India with high price in comparison of others. But it has covered mostly organized sectors because of its advantages and good quality. High price matters for unorganized sector, therefore the ratio of organized and unorganized customer is 80:20 of TCL, but the growing market shows that it is a profitable business. Citric Acid is a strong substitute of Malic Acid and cheaper too. But it was unable to satisfy his big consumers. Malic Acid is 1.05 times greater than Citric Acid in acidity. The quantity of acidulant used in a product is determined by its „acidity and sourness‟ and it is estimated by tasting panels than 10% to 20% less Malic Acid is required than Citric Acid, to produce equivalent effect. Therefore Thirumalai has a lot of customers and it is getting profit every year. The market segment of Fine Chemicals will never end, therefore the consumption will always increase and it will always create demand for big manufacturing company of beverages, pharmaceuticals, confectionary, agriculture, food, industrial applications etc.

Acknowledgement

I thank Thirumalai Chemicals Ltd. for providing all the resources and facilities towards

the successful completion of my project titled FINE CHEMICALS (MALIC ACID).

My hearty thanks to Mr. Ramesh Kumar (Regional Manager) of Thirumalai Chemicals

Ltd. for providing me an opportunity and support without which my project journey would

not be so successful. I sincerely thank him for extending his kind cooperation, able

guidance and painstaking efforts in guiding me throughout the entire phase of my

project with his valuable advices, suggestions and recommendations. He really helped

me to understand the marketing strategy and marketing sailing of fine chemicals in

domestic market.

I sincerely thank my Internal Gide Mr. Rajesh Kumar for his valuable suggestions and

guidelines.

I acknowledge my sincere thanks to all the faculty members and our friends and family

for rendering me immense facilities and constant support.

Chanda Kumari

DECLARATION

I, Chanda Kumari student of BUSINESS SCHOOL OF DELHI, hereby declare that I have completed this project on the title of “Malic Acid – Launched as a substitute with high price but succeeded in India” is an authentic work done by me and it is my own hard work and effort under the guidance of Mr. Ramesh Kumar (THIRUMALAI CHEMICAL LTD.) and Mr. Rajesh Kumar (faculty Guide) in the academic year 2009-11. I declare that the information submitted is true and original to best of my knowledge.

Chanda Kumari

TABLE OF CONTENTS CONTENTS PAGE NO. Introduction & Background 1-7

Chemical industry overview Introduction of TCL Organization History Mission & Vision Growth Strategies Environmental Initiatives Product of the company Research & Development Industry served Company profile Customer of TCL

Project Portfolio 8-18 Project Title Rationale behind choosing the project Introduction of project product

Research Methodology 19-21 Research objective Type of research Methods & Tools for Data collection Research Design Research Approach Research Instrument Sampling Plan

Survey Analysis Report 22-42 Nature of response

Consumer difference between Malic Acid & its substitute Usage of Malic Acid in different segment

Rating of buying attributes

Buying source of Malic Acid

Attributes of company

Satisfaction levels of TCL customers

Loyalty towards the Thirumalai Chemicals Limited

How often Customer buy Malic Acid

Reason for fluctuation of demand of Malic Acid

Future aspects/demand

Market Research 43-53 Market segmentation International Marketing Distribution Network Price Volatility Production & Market Growth Profit of the company Production of Food Acid by TCL Key success factors Risk & concerns Future of Malic Acid On BCG Matrix SWOT Analysis Social Enterprises Employee of TCL

Limitations, conclusions & suggestions 54-55 Annexure 56-59 Bibliography 60-61

LIST OF TABLES

TABLES No. Contents Page No.

1 Nature of response 23

2 Users of Malic Acid & its substitute 24

3 Usage area of Malic Acid 25

4,5,6,7,8,9,10 Rating of buying attribute 26-30

11 Buying source of Malic Acid 31

12,13,14,15,16,17,18 Attributes of Company 31-35

19,20,21,22,23,24,25 Satisfaction level of TCL customer 35-39

26 Loyalty towards the TCL 40

27 How often customer buys Malic Acid 41

28 Fluctuation of demand 42

LIST OF CHARTS/GRAPHS

No. of Charts Contents Page No.

1 Nature of response 23

2, Users of Malic Acid & its substitute 24

3,4 Usage area of Malic Acid 25

5,6,7,8,9,10 Rating of buying attribute 27-30

11 Buying source of Malic Acid 31

12,13,14,15,16,17 Attributes of Company 32-35

18,19,20,21,22,23 Satisfaction level of TCL customer 36-39

24 Loyalty towards the TCL 40

25,26 How often customer buys Malic Acid 41

27 Fluctuation of demand 42

28 Future aspects 42 29,30 Gross profit of company 47-48

31 Production of Food Acid 48

IDEAL PARTNER FOR YOUR CHEMISTRY NEEDS

INTRODUCTION AND BACKGROUND

Chemical Industry Overview

India ranks twelfth in the world for production of chemicals by volume. India’s chemical industry contributes about 3% to the nation’s Gross Domestic Product (GDP). The industry has a turnover of about US$ 30 billion, and accounts for about 14% in the general Index of Industrial Production (IIP) and 17.6% in the manufacturing sector. It also accounts for about 13-14% of total exports and 8-9% of total imports of the country. The industry is mostly concentrated in western India. The Indian chemicals industry comprises both small and large-scale units. While the fiscal concessions granted to the small sector in mid-eighties led to the establishment of a large number of units in the Small Scale Industries (SSI) sector, the industry is currently in the midst of major restructuring and consolidation. With the shift in emphasis on product innovation, branch building and environmental friendliness, this industry is increasingly moving towards greater customer orientation.

Introduction of Thirumalai Chemical Ltd.

Thirumalai Chemicals Limited (TCL), started production of Phthalic Anhydride in 1976 in

Ranipet, in South India. Since then, it has grown into a diverse and respected enterprise, rapidly

expanding into the manufacture of many other critical Industrial Chemicals: Maleic Anhydride,

Fumaric Acid and Malic Acid and various Fine Chemicals and Derivatives. Today TCL ranks

among the largest producers in the world in all its core products. It has a strong manufacturing

base capable of delivering quality products, with excellent logistics and technical support, at

competitive prices.

Organization History

Thirumalai Chemicals Limited was incorporated in 1972 as a public limited company. It was

established for the manufacturer of PAN with an initial installed capacity of 7500 MTS per

annum based on the technology supplied by Ch.FVon Heyden and Davy Power Gas, Germany.

The plant commenced commercial production in 1976.

About 1983-1986, the company installed a plant to recover Maleic Anhydride from effluent

gases based on technology supplied by Alusuisee Italia Spa, Italy. The company has attempted

continuously modernize and retrofit its plants. After debottle-necking, TCL has increased the

PAN capacity to 25000 TPA.

In 1991, the company established second Maleic Anhydride Plant (10000 TPA). In 1992,

company established a Fine Chemical plant for Food Acid. In May 1994, the company received

ISO-9002 accreditation for their quality system.

1996 TCL industries, Malaysia starts Maleic Anhydride production (35000 TPA). In 1997, TCL

started to produce Phthalic Anhydride (90000 TPA), Fumaric Acid (14000 TPA), Malic Acid (8000

TPA) in India.

The company has shown consistent profitability. It has declared dividends every year from

1979 onward, expect for 1992-93. In 1992-93, the company made losses due to a fall in

demand for PAN, through a recovery in 1993-94 enabled it to post after-tax profits and declare

20% dividend.

In 2002, the company expanded the Maleic Anhydride capacity to (26000 TPA) in India.

In 2003, startup of Phthalimides.

In 2004, Biotech Chiral Synthesis project.

In2006, Startup of a semi-commercial plant for a specific chiral molecule.

Mission & Vision

TCL aims to be a leader in all its businesses. We will achieve this by providing the highest

quality of products and services to our customer, that meet or exceed their expectations and by

working with a sense of responsibility to the community and the community and the

environment.

TCL has plans for a major growth in its Specialty Chemical business through JVs with European /

US Specialty Chemicals and by building and managing cost effective manufacturing facilities in

India to meet partners’ growth plans in their existing world market and in the emerging

markets in India and rest of Asia.

The Specialty Chemical businesses proposed are plastic and Elastomer Additives, Food

Additives, Cosmetic Additives, Polymer Additives and Special Functional Products and Specialty

Chemicals/ Fine Chemicals based on Phthalic Anhydride, Maleic Anhydride which is TCL’s key

products.

Growth strategies

To grow in core business of Phthalic Anhydride, Maleic Anhydride and Derivatives, and in Food

Ingredients

To build businesses in Specialty & Functional products and Additives for Cosmetic and Personal

Care, Food Ingredients, Polymers, Paints and Coatings. Towards this, we are working to form

alliances with global Specialty Chemical Companies.

To provide a wider range of products and services

Environmental Initiatives

Effects of chemicals on the environment

Many employers are not aware of the hazards associated with toxic chemicals and often do not

know how to dispose of chemical wastes safely. (Employers also need to be educated about

chemical hazards.) As a result, these employers often simply “dump” waste chemicals into the

environment. Convenient dumping grounds are the ocean, rivers, lakes, fields, roadsides, etc.

TCL worked on it and these are -

Wastewater management

Reduction in water use

Energy management

Renewable energy

Responsible care

Products of the company

1. Pthalic Anhydride

TCL started commercial production of Phthalic Anhydride in 1976, with a capacity of 6,000 mts under License from Wacker GmbH, Germany. Since then the capacity has been steadily increased to 145,000 mts. to meet the market demand.

2. Maleic Anhydride In 1985, TCL set up a small plant to recover Maleic Anhydride from the effluent gases of PA production. In 1992 expanded manufacture of Maleic Anhydride to 10,000 TPA. Set up TCL Malaysia in 1997, to produce Maleic Anhydride. With the n-Butane Project commissioned in 2008 increased the total capacity of Maleic Anhydride to 60,000 TPA

3. Malic Acid

TCL Food Additives Plant developed and designed completely in-house, ranks among the best in the world. TCL installed a Fine Chemical Plant in 1992 to manufacture food acidulants and in 1996, to increase the capacity substantially, set up separate Plant to produce Malic Acid (8000 TPA).

4. Fumaric Acid

Our Food Acidulant Plant designed and developed completely in-house, ranks among

the best in the world. TCL installed a Fine Chemical Plant in 1992 to manufacture food acids and in 1996, to increase the capacity substantially, set up separate Plant to produce Fumaric Acid (14000 TPA).

5. L(+) Tartaric Acid TCL set up a Biotech facility in 2002, to develop processes to produce nature

identical chiral products based on bio-transformation using biocatalysts. The TCL R & D

and Biotechnology Teams developed the complex technology involving Biology,

Chemistry, Polymer Chemistry and Separation Techniques. To demonstrate the

commercial viability of the process developed, it set up a Pilot Plant designed and built

by our Engineering Team, with facility for scale up. After nearly four years of concerted

team effort this product has been successfully commercialized.

6. Specialty Chemicals Succinic Acid Succinic Anhydride Maleic Acid

Research & Development

Over the last 15 years, 12 processes have been developed in the R & D lab and commercialized.

Pioneering designs and development of a food acidulant plant completely in house and ranked among the best in the world.

Development of a Chiral Food additive to bioteck route and setting up a commercial plant for catering to world market.

Synthesis of about 120 compounds for catalog companies and drug discovery units.

Industries Served

Paper Powder coating Agrochemicals Plasticizers Pharmacy Intermediates Unsaturated Polyester Resins Esters Paints Textile Leather Detergent Bulk drugs Personal Care &Cosmetics Adhesives

Polymer additives Rubber chemicals Leather chemicals Food Beverage & Confectioneries Bakery

goods

Feed Construction materials Metal Cleaning Electroplating Water treatment Intermediates Flavors &

Fragrances Pigments & Dyes

COMPANY PROFILE Name of the Company: Thirumalai Chemicals Ltd. Type: Public Ltd. Company Nature of Business: Manufacturer Major Markets: Indian Subcontinent, East Asia, Middle East and South East

Asia Products: Petrochemicals, Food Additives,

Fine & Specialty Chemicals

Founded: 1975 Corporate office: 101,Sion-Matunga Estate,S.No.6,

Mumbai-400022

Factory: 25-B, Sipcot Industrial Complex, Ranipet, Tamil Nadu-632403

Key People: Mr. S. Sridhar, (Chairman & Managing Director) Mr. R. Parthasarathy (Vice Chairman & Managing Director)

Products: Phthalic Anhydride, Malic Acid, Maleic Anhydride, Tartaric Acid,

Fumaric Acid, Succinic Acid, Succinic Anhydride, Maleic Acid

Listing on Stock Exchanges: Mumbai (BSE) and National Stock Exchange (NSE) BSE Stock code: 500412 NSE Stock code: TIRUMALCHM ISIN No: INE 338A01016 Associate companies: TCL Industries (M) Sdn.Bhd.Malaysia

Ultramarine & Pigments Limited, India Chemidye Manufacturing Company private Limited Lapis Digital services, India TCL Research, India Lapiz Technical Services, India

Technology Partners: Wacker Chemie AG, Germany Davy Mckee AG, Germany Vereignigte Ultramarine Fabriken, Germany Lonza, Italy, Ballestra Spa, Italy

IIT s. r. l, Italy, BASF, Germany

Customer of TCL IN INDIA

IN INTERNATIONAL MARKET

Argentina

Australia Austria Bangladesh Belgium Brazil Bulgaria Canada Chile

Iran

Ireland Italy Japan Jordan Korea Malaysia Mexico Morocco

Romania

Russia SaudiArabia Singapore SouthAfrica Spain SriLanka Sweden Syria

China

Czech Denmark Egypt Finland France Germany Greece Indonesia

Netherlands

NewZealand Nigeria Norway Pakistan Peru Philippines Poland Portugal

Taiwan

Thailand Tunisia Turkey U.A.E. UnitedKingdom UnitedStates Venezuela Vietnam

PROJECT PORTFOLIO

Project Title

Malic acid - the launch of high price substitute food chemical in India and succeeded.

Rationale behind choosing the project

Malic Acid has launched in India as a substitute of Citric Acid. The price also creates a high gap between Malic Acid and its substitute. Price also matters for its customers and this is the one most important drawback of Malic Acid but the fact says other things. The total consumption of Malic Acid is 1000 tones/annum in present time in India and the growth rate of Malic Acid sales is 10% in a year.

INTRODUCTION OF PROJECT PRODUCT

FINE CHEMICALS

This project is all about Malic Acid which is the important part of Fine chemicals. Fine Chemicals are pure form of chemical and use in small dosages in their products. It is also called Specialty Chemicals. There are many Chemicals which exist in the list of Fine chemicals and these are

Malic Acid DL - Tartaric Acid Fumaric Acid Maleic Acid Succinic Acid Succinic Anhydride Fruit Acid

Maleic Acid

Maleic Acid is a white, monoclinic, crystalline, fine granules/powder. It has a faint

acidulous and characteristics astringent taste.

Chemical Name : Maleic Acid

Chemical formula : C4H4O4

Molecular weight : 116.08

Synonyms : Butenedioic acid, Maleinic acid, toxilic acid

Packaging : PE lined, PE laminated HDPE bag-25 Kg

Storage & Handling

Maleic Acid is a hygroscopic substance. It should be kept in a well-sealed bag away

from direct sunlight. It is hazardous. Its dust will irritate eyes, nasal passages and skin.

While handling this material, it is recommended to wear safety goggles, respirator and

rubber gloves.

Applications

In the manufacture of resins and drying oils, Synthesis of Malic, Succinic,

Aspartic, Propionic, Lactic and other acids.

In pharmaceutical, plastic, Textile Industry & Paper Chemical Manufacture

In oil Industry as an antioxidant to prevent rancidity of oils in storage

Malic Acid

Malic acid (C4H6O5) is an important organic compound having a sharp, clean, tart, acidic

taste. It is free flowing, stable, non-hygroscopic. Malic Acid is a major natural organic

acid occurring in fruits and berries. In fact, contrary to the prominent constituent of many

fruits and not Citric Acid. The pleasant and refreshing experience of biting into a juicy

apple or cherry is mostly due to Malic Acid. In our environment, malic acid also

participates in the vital function of carbohydrate metabolism in the animals and human.

It is produced and broken in the human body every day. Commercially malic acid has

used as a substitute of citric acid. The specific uses of malic acid are in soft drinks, fruit

juices, dry beverage products, candies fruit and vegetables, edible oils, non-food,

special bakery products, jams, jelly etc.

Chemical Name : DL Malic Acid

Molecular Formula : C4H6O5

Molecular Weight : 134.09

Synonyms : Hydroxybutanedioic acid, Hydroxysuccinic acid

Packaging : 1. PE lined, PE laminated HDPE bag – 25 kg

2. PP laminated 4 Ply Paper Bag – 25 kg

3. Fiber drums with PE liner – 30kg

4. 800kg & 1000 kg bulk bag with inner liner

5. 1kg pouches in 25kg HDPE bag – 25kg

MANUFACTURING PROCESS OF MALIC ACID

Benzene p-xylene o-xylene

Maleic Anhydride Commodity chemicals Phthalic Anhydride

Downstream product

Malic Acid

DL & L+ Tartaric Acid

Fumaric Acid Fine Chemicals

Succinic Acid

Succinic Anhydride

Maleic Acid

CRUDE OIL

Naphtha

Storage & Handling

Handling

General advice : Ensure thorough ventilation of stores and work areas.

Take precautionary measures against static discharges.

Keep away from sources of ignition – No smoking.

Protection against

Fire and explosion : Avoid dust formation. Dust can from an explosive mixture

With air. Prevent electrostatic charge – sources of ignition

Should be kept well clear – fire extinguishers should be

Kept handy. Electrical devices must meet the specified

temperature class.

Storage

General advice : Protect against moisture. Containers should be stored

tightly sealed in a dry place.

Safety

United States, Food and Drug Administration has approved the use of Malic Acid as a

general- purpose food additive, expect in Baby foods. It is included in the FDA list as a

Generally Recognized as Safe (GRAS) substance.

Legistation

Thirumalai Chemicals‟ Malic Acid meets the Food Chemical specifications. German

Food additive purity regulation, allows Malic Acid to be added to all food products,

without any quantitative limit.

In UK Malic Acid is approved for use by the following:

1. The food standards (Preserves) order – 1953

2. The Soft drinks regulation 1964, amended 1995

3. Miscellaneous additive in Food regulation 1980 No. 1834 for general use for an

acidulant.

In India, Malic Acid has been approved for use in carbonated beverages and as an

acidulant in miscellaneous food by –

Presentation of Food Adulteration Act 1995

MALIC ACID IN FRUITS (% OF TOTAL ACIDS)

WATERMELON 100%

PLUM 97%

APPLE 95%

PEACH/CHERRY 94%

BANANA 73%

PEAR 67%

ORANGE PEEL 70%

APRICOT 73%

GRAPE 60%

TOMATO 48%

GOOSEBERRY 50%

CRAMBERRY 24%

PINEAPPLE 13%

STRAWBERRY 10%

BLUEBERRY 6%

MANGO 17%

Malic acid has many advantages in spite of its substitute and these are –

1. Malic acid – the flavor enhancer Malic Acid blends extremely well with an extensive range of essences and flavors. Also, it has a smooth build up and longer retention of flavor (Citric Acid builds up taste rapidly. But the taste bud stimulation is off short duration), which makes Malic Acid highly useful in soft drinks formulation and diet products.

2. Malic acid – the self-life extender Malic Acid is naturally anhydrous and non-hydroscopic, which extends its storage life and the self-life of products it is blended with. This is of specific advantage in powered soft drink concentrates and dry beverages.

3. Malic acid – the lower melting point advantage Malic acid has a melting point of 1290C and Citric Acid has a melting point of 1530C. This important difference is shown in the manufacture of hard candies, where the acidulant in corporate in powder form in the cooked syrup on the slab. Malic Acid‟s lower melting point makes it too easily dispersed in the syrup melt and consequently minimum folding and kneading are required. It also makes the product „star bright‟.

4. Malic acid – for better solubility Water used in many processes often contains small amounts of hard water salts. Easy and better solubility of Malic Acid and its Calcium salt prevents „cloudiness‟ of the end product resultant and imparts greater clarity, when Malic Acid is used as the acidulant.

5. Malic acid –for economy Malic Acid and Citric Acid have more or less the same PH based on equal strength. On a molecular weight basis, Malic Acid is 1.05 times greater than Citric Acid in acidity at lower PH; Malic Acid is also more „sour‟ than Citric Acid. The quantity of acidulant used in a product is determined by its „acidity‟ and „sourness‟ and it is estimated by testing panels that 10%-20% less Malic Acid is required than Citric Acid, to produce equivalent effect.

Benefits of using Malic Acid

Malic Acid, the natural acid constituent of apple, finds wide applications in the food industry. Due to its capability with all types of flavor, the flavor enhancing property, the sharp, lingering acid taste and the high water solubility nature, it is ideally suited for the preparation of juices, soft drinks, cider and wines. It‟s non-hygroscopic. Free flowing nature, makes it the preferred acid for dry squash juice mixes.

When used in sugar confectionary, the low melting point of Malic Acid gives greater clarity to the finished product.

In fruit and vegetable canning, Malic Acid is used for PH adjustment. In the edible oil processing/refining it is used to remove and control traces of

metal impurities and as a synergist in admixture with antioxidants, to control rancidity.

In cheese preparation, it increases the product yield. Malic Acid is also used in Pharmaceuticals, Cosmetics, Metal cleaning and

Textile finishing.

Applications

In Food Processing Industries Malic Acid is the most preferred acidulate and flavor enhancer, for its rapid dissolution rate, its non-hygroscopic, free-flowing nature and compatibility with all types of fruits and flavors & for improving pH stability.

BEVERAGES

Carbonated Beverages Non-carbonated Beverages like Fruit drinks Powered Mixes like Iced tea and dry soup mixes Sports drinks and enriched drinks rich in calcium salts- to give clear solutions,

without cloudiness Soft drink concentrates Low calorie Beverages- to provide desired sourness and flavor at a higher PH. Apple cider- to maintain consistent sharp taste Wines- increase its flavor profile by malo-lactic fermentation Sugar cane juice- as a stabilizer Canned fruits and Vegetables- as anti-browning agent synergistic with Ascorbic

acid

CONFECTIONARIES, PRESERVES AND BAKERY PRODUCTS AND OTHERS

Hard candy, pressed candy-for increased shelf life since with low moisture level Soft candies like agar, gelatin Pastilles or pectin-based candies such as jellies

and gummies-for proper gelline and good product clarity Chewing gum Fruit fillings- in bakery products like Cookies, Snack bars, Pies, and Cakes Savory snacks to impart taste and flavor Dairy foods Frozen desserts, sherbets, water ices and gelled desserts Edible oils and fats- in the control of oxidative rancidity, as a chelating agent, in

degumming, as a bleaching and anti-emulsifying agent Pet foods- to obtain the PH required for gelling Ruminant feeds – as growth promoting, feed saving and effective milk promoting

agent

TECHNICAL APPLICATIONS

Metal cleaning and Electroplating For sanitation and scale removal in breweries, dairies and food plants Water treatment- for removal of hardness, Chelating agent in swimming pool Wash and Wear, Parma- press textile finishing Textile dying- improves the color value, produces sharper prints Paint- to prevent formation of skin on top layer during storage Copying paper- to stabilize its heat-sensitiveness Cellulose nitrate lacquers- as an inhibitor of gelation Acrylic fiber- for stabilizing the polymer

PHERMACEUTICAL AND PERSONAL CARE PRODUCTS

Throat lozenges Cough syrups Effervescent granulated preparations Tooth- cleaning preparations and mouth washers- as it stimulates saliva flow Soaps, mouthwashes and toothpaste- used in combination with germicidal

compounds Skin care products- to rejuvenate and improve skin conditions Virucidal hand lotions As chelater of Aluminum against toxic effects of aluminum In creams for treatment and cleansing of cuts, wounds and ulcers

Tartaric Acid

Tartaric Acid is an important organic acid found in natural state in several fruits. It is odorless, free flowing white crystalline powder or crystals, stable and non-hygroscopic.

Chemical Name : L (+) Tartaric Acid



Synonyms : 2, 3- Dihydroxybutanedioic Acid, L (+)-Dihydroxy-

-succinic acid

Packaging : 1. PE line, PE laminated HDPE Bag – 25 kg

2. PE laminated 4 Ply Paper Bag – 25 kg

3. 1000 kg bulk bag with inner liner

Handling & Storage

HANDLING

General advice : Ensure thorough ventilation of stores and work

areas

Protection against

fire and explosion : Avoid dust formation. Dust can form an explosive

mixture with air. Prevent electrostatic charge –

sources of ignition should be kept well clear – fire

extinguishers should be kept handy. Electrical

devices must meet the specified temperature class

Storage

General advice : Protect against moisture. Containers should be

Stored tightly sealed in a dry place.

Fumaric Acid

Fumaric Acid is found abundantly in nature. Fumaric Acid has a slight acid taste. It is flowing, stable and non-hygroscopic.

Chemical Name : Fumaric Acid



Synonyms : Trans-2-butenedioic acid, (E)-Butenedioic acid,

2-butenedioic acid

Packaging : 1. PE lined, PE laminated HDPE Bag – 25 kg

2. PE laminated 4 Ply Paper Bag – 25kg

3. Bulk Bags – 1000/675/500 kg

4. Bulk Bags – Antistatic

Storage & Handling

Fumaric Acid is slightly inflammable. It should be stored away from sources of ignition. While handling Fumaric acid Safety Goggles, Dust Respirator and Rubber Gloves are recommended.

Uses

Fumaric Acid can replace traditional acidulants in the preparation of fruit juice drinks at substantial material and cost savings.

In Pharmaceutical industry, Fumaric Acid finds a major use for Ferrous Fumarate.

INTENDED USE

Tartaric acid is used in the manufacture of carbonated drinks. It is widely used in effervescent tablets and powders frequently with citric acid.

It is an acidulant used in the manufacture of gelatin dessert, fruit jellies, jams, pickles, concentrates.

It finds application in the pickling, cleaning and polishing of metals Tartaric acid is used in the manufacture of DATEM esters, which are emulsifiers

in bread preparation.

SPECIALTY CHEMICALS In 2000, TCL set up a multi-synthesis plant to produce more downstream products of Maleic Anhydride, with the process developed in house. These three chemicals exists in specialty chemicals- Succinic acid Succinic Anhydride Maleic Acid

Succinic Acid Succinic acid is a white, crystalline, odorless, granular product. It has a faint acidic characteristics taste. Chemical Name : Succinic Acid Chemical Formula : C4H6O4

Molecular Weight : 118.09 Synonyms : Butanedioic Acid, 1, 2 Ethanedicarboxilic Acid Packaging : PE lined, PE laminated HDPE bag – 25 KG

Storage & Handling Succinic Acid should be kept in a well-sealed bag away from direct sunlight.

Health Hazard Succinic Acid will irritate eyes, nasal passages and skin. It is recommended to wear safety goggles, respirators and rubber gloves while handling the material.

Applications

In manufacture of alkyd and coatings. As an intermediate in the manufacture of dyes, flavors, photographic chemicals,

lacquers, pharmaceuticals, plasticizers, electrolytic bath additives, metal treatment chemicals and in the manufacture of succinates.

As a starch modifier in foods and feeds. As a flavoring agent in food and beverages.

Succinic Anhydride

Succinic Anhydride is an important organic anhydride. It is a white, crystalline and flaky product. It is odorless. Chemical Name : Succinic Anhydride Chemical Formula : C4H4O3

Molecular weight : 100.07 Synonyms : Dihydro-2, 5-Furandione, Succinyloxide Packaging : 1. PE lined, PE laminated HDPE bag-25KG 2. 500 kg bulk with liner

Storage & Handling Succinic Anhydride reacts with water to form Succinic acid. Container should be kept well sealed away from water and moist air.

Health Hazard Succinic Anhydride irritates eyes, nasal passages and skin. It is recommended to wear safety goggles, respirator and rubber gloves while handling this material.

Applications

In the manufacture of alkyd and other copolymer resins, as cross-linking agent in

acrylic films. In the manufacture of esters, flavor and fragrance chemicals, dyes, adhesive and

curing agents. In the manufacture of synthetic detergents and lubricants. For size preparation in textile industry As starch modifier in food and feed industry.

RESEARCH METHODOLOGY

Research Objective

This project describes the marketing strategy, branding, positioning, segmentation and

customer relationship of Thirumalai chemical ltd. This project is not a pure description of

marketing of Malic Acid but involves critical evaluation and identification. This report

tries to address this following.

The objectives of the project surveys are as follows:

To evaluate and analyze the price factor in the market in comparison of its

substitute Citric Acid

To study the competitors strategy against Malic Acid

To use and apply the concept of „service marketing and marketing strategy‟

To do a study on service delivery system and analysis of company‟s customer

relationship process

To analyze the customer segment

To do a study and analysis of service positioning of Malic Acid in the competitive

market

To analyze customer satisfaction and study human resource management

To study and evaluate the service processes and performance towards the

customer value

To study the reason for the existence of service delivery gap

To get the idea about products quality and analyze customer‟s satisfaction.

Type of Research

Descriptive Research – To describe the commonly acceptance of customer.

Enquiry Mode

Structural approach

Methods & Tools for Data collection

PRIMARY DATA

Data obtained from the first hand by the researcher is called the primary data. Here The

main source of primary data collection was interviews, discussion and interaction with

customers by using the Questionnaire.

SECONDARY DATA

Internet

Interaction with the employee of the company

Company book record

THE METHODOLOGY CONSISTS OF:

Need and objective of research

Collecting the facts/data

Analysis of the data

Conclusion and solution

Research Design

After identifying problems and sources of data the next step is to prepare a research

design. It facilitates research to be efficient as possible yielding maximum information.

Research Approach

Survey method was used to collect data. List of existing customers were provided by

the company. Approach used was to take appointment of customers and then meet

them or in some cases meet the customers directly without appointment and then fill up

the questionnaire.

Research Instrument

A structured questionnaire was used to research instrument in this project. A

questionnaire consists of both close ended and open ended questions to make analysis

easy and respondent to feel free to answer the questions.

Sampling Plan

TYPE OF SAMPLING

Judgmental sampling of all the customers as per the list provided by the company was

covered from various parts Delhi.

SAMPLING FRAME

Various part of Delhi

SAMPLE SIZE

Organised company: 5

Unorganised company: 23

Total: 28

SAMPLING UNITS

Company

ANALYTICAL TOOLS

Used SPSS and Excel software and for statistical tools for graphical representation.

SURVEY ANALYSIS REPORT

This survey analysis report is based on the Questionnaire assigned to get the

responses of the individuals. I have tried to establish my questionnaire in a way that

best fits the marketing related and price related issues of our selected product that is

Malic Acid. In preparing this questionnaire I have focused on the current marketing and

pricing issues faced by Malic Acid and discuss some current strategies of the product as

well to get the responses about its new development.

In the following survey analysis report I tried to explain the results of each question

respective table and graph and in the end a short interpretation of the result I received.

NATURE OF RESPONSE

Statistics

N Valid 28

Missing 0

Nature of response

Frequency Percent Valid Percent Cumulative Percent

Valid Response dent 10 35.7 35.7 35.7

Non Respondent 8 28.6 28.6 64.3

Not Available 6 21.4 21.4 85.7

Not found 4 14.3 14.3 100.0

Total 28 100.0 100.0

Table 1: Showing nature of response

Chart 1: showing nature of response

I did survey on the basis of organized and unorganized sector of 28 people and finally I

got these results

35.7

28.6

21.4

14.3

Nature of response

Respondent

Non Respondent

Not Available

not found

10 people gave response and their percentage is 35.7

8 people didn‟t give response and their percentage is 28.6

6 people were not in the town and their percentage is 21.4

4 people were missing or closed their manufacturing plant and their percentage

is 14.3

Consumer difference between Malic Acid & its substitute

Statistics

N Valid 10

Missing 18

users


Valid Malic Acid 5 17.9 50.0 50.0

Substitute 3 10.7 30.0 80.0

Used but left now 2 7.1 20.0 100.0

Total 10 35.7 100.0

Missing System 18 64.3

Total 28 100.0

Table 2: Showing users of malic acid and its substitute

Chart 2: Showing users of malic acid & its substitute

In my respondent customer, I observed that 17.9% were Malic Acid user, 10.7% were

its substitute user like Citric Acid or dry form of fruits and rest 7.1% people used Malic

Acid but now they left it because of its price.

50% 30%

20%

user

malic acid

substitute

used but left now

Usage of Malic Acid in different segment

Statistics

usage

N Valid 5

Missing 23

Usage


Valid Fruit and beverage 2 7.1 40.0 40.0

Confectionary 2 7.1 40.0 80.0

Pharmaceuticals 1 3.6 20.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 3: Showing usage area of malic acid

Chart 3: Showing usage of Malic Acid

Chart 4: Showing usage of current buyer

7% 7%

4%

82%

Usage of Malic Acid

Fruit and beverage

confectionary

Pharmaceuticals

missing

40 40 20

USAGE OF MALIC ACID

Fruit and Beverage Confectionary

Pharmaceuticals

Rating of buying attributes

To know the customer buying behavior, I designed some questions in questionnaire to

rate the buying attribute as their preference when they buy the Malic Acid on the scale 1

to 6, in which 6 is for most important and 1 is for least important. Later I use the

following nominal scale are numerical value

6=Very Most Important

5=Most Important

4=Important

3=Less Important

2=Least Important

1=Very least Important

Statistics

Rating of

buying

attribute for

price

Rating of

buying

attribute for

quality

Rating of buying

attribute for order

and delivery

Rating of

buying

attribute for

credit

Rating of

buying

attribute for

brand

Rating of

buying

attribute for

relationship

N Valid 5 5 5 5 5 5

Missing 23 23 23 23 23 23

Table 4: Rating of buying attributes

Price

Rating of buying attribute for price


Valid important 1 3.6 20.0 20.0

Most important 1 3.6 20.0 80.0

Very most important 3 10.7 60.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 5: Rating of buying attribute for price

Due to price factor Malic Acid is facing competition in the market. In a rational view –

20% customers considered it as an important factor

20% customers considered it as an most important factor

60% customers considered it as a very most important factor

Chart 5: Price attribute

Quality

Rating of buying attribute for quality


Valid less important 1 3.6 20.0 20.0

very most important 3 10.7 60.0 80.0

important 1 3.6 20.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 6: Rating of buying attribute for quality

Due to quality factor Malic Acid has covered all organized sector. In a rational view –

20% customers considered it as an less important factor


60% customers considered it as a very most important factor

Chart 6: Quality attribute

very most importantmost important

importantless important

least important

60%

20% 20%

price attribute

price attribute

0%20%40%60%

Order & Delivery

Rating of buying attribute for order and delivery


Valid less important 1 3.6 20.0 20.0

important 1 3.6 20.0 40.0

most important 3 10.7 60.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 7: Rating of buying attribute for order & delivery

Malic Acid is a chemical which has a short storage time during delivery. So order and

delivery also exists as an important factor for customers. In a rational view –

20% customers considered it as an less important factor


60% customers considered it as a most important factor

Chart 7: order & delivery

0%10%20%30%40%50%60%70%

order and delivery attribute

Credit Policy

Rating of buying attribute for credit policy


Valid Least important 3 10.7 60.0 60.0

Less important 1 3.6 20.0 80.0

Important 1 3.6 20.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 8: Rating of buying attribute for credit policy

Credit policy is also an important factor for customers. In a rational view –

60% customers considered it as least important factor

20% customers considered it as less important factor


Chart 8: credit policy attribute

Brand

rating of buying attribute for brand


Valid Less important 1 3.6 20.0 20.0

Important 1 3.6 20.0 40.0


Total 5 17.9 100.0


Total 28 100.0

Table 9: Rating buying attribute for brand

0

0.2

0.4

0.6

0.8

very mostimportant

mostimportant

important lessimportant

leastimportant

veryleastimportant

credit policy atrribute

Brand defines establishment and market value rather than other product. In a rational

view –

20% customers considered it as less important factor


60% customers considered it as most important factor

Chart 9: brand attribute

Relationship

rating of buying attribute for relationship


Valid Least important 1 3.6 20.0 20.0

Important 2 7.1 40.0 60.0


Total 5 17.9 100.0


Total 28 100.0

Table 10: Rating buying attribute for relationship

Relationship shows the relation or behavior between customer and company. In a rational

view –

20% customers considered it as least important factor


40% customers considered it as most important factor

0%

10%

20%

30%

40%

50%

60%

70%

very mostiportant

mostimportant


leastimportant

very leastimportant

brand attribute

Chart 10: behavior attribute


It explains, what is the source to buy Malic Acid of TCL‟s customer

Statistics

N Valid 5

Missing 23



Valid TCL 1 3.6 20.0 20.0

Open Market 2 7.1 40.0 60.0

Dealer 2 7.1 40.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 11: Buying source of Malic Acid

Chart 11: buying source

0%

10%

20%

30%

40%

50%

very mostimportant

mostimportant


leastimportant

very leastimportant

behaviour attribute

20%

40%

40%

SOURCE

TCL

Open Market

Dealer

40% customers buy through Dealer

40% customers buy from open market

20% customers buy from TCL

Attributes of company

It explains the company attribute towards the customer which they like most.

Statistics

price attribute

of TCL

quality

attribute of

TCL

order and delivery

attribute of TCL

credit policy

attribute of TCL

technical support

attribute of TCL

reliability

attribute of TCL

N Valid 5 5 5 5 5 5

Missing 23 23 23 23 23 23

Table 12: showing attributes of company

Price attribute of TCL

price attribute of TCL


Valid like 1 3.6 20.0 20.0

don't like 4 14.3 80.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 13: price attribute of TCL

20% customers like price attribute

80% customers don‟t like price attribute

Chart 12: price attribute of TCL

20%

80%

PRICE ATTRIBUTE OF TCL

Like

Don't Like

Quality attribute of TCL

quality attribute of TCL


Valid like 4 14.3 80.0 80.0

don't like 1 3.6 20.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 14: quality attribute of TCL

20% customers don‟t like quality attribute

80% customers like quality attribute

Chart 13: quality attribute of TCL

Credit policy attribute of TCL

credit policy attribute of TCL


Valid like 1 3.6 20.0 20.0

don't like 4 14.3 80.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 15: credit policy attribute of TCL

80% customers don‟t like credit policy attribute 20% customers like credit policy attribute

80%

20%

QUALITY ATTRIBUE OF TCL

Like

Don’t Like

Chart 14: credit policy

Order & Delivery attribute of TCL

order and delivery attribute of TCL


Valid like 3 10.7 60.0 60.0

don't like 2 7.1 40.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 16: order & Delivery attribute of TCL

40% customers don‟t like order & delivery attribute 60% customers like order & delivery attribute

Chart 15: order & delivery attribute

Technical support attribute of TCL

technical support attribute of TCL

20%

80%

CREDIT POLICY ATTRIBUTE OF TCL

LikeDon’t Like

60%

40%

ORDER AND DELIVERY ATTRIBUTE OF TCL

Like

Don’t Like

Frequency Percent Valid Percent

Cumulative

Percent

Valid like 4 14.3 80.0 80.0

don't like 1 3.6 20.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 17: technical support attribute of TCL

20% customers don‟t like technical support attribute 80% customers like technical support attribute

Chart 16: technical support attribute

Reliability attribute of TCL

reliability attribute of TCL


Valid like 4 14.3 80.0 80.0

don't like 1 3.6 20.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 18: reliability attribute of TCL

20% customers don‟t like reliability attribute 80% customers like reliability attribute

80%

20%

TECHNICAL SUPPORT ATTRIBUTE OF TCL

Like

Don’t Like

Chart 17: reliability attribute of TCL

SATISFACTION LEVEL OF TCL CUSTOMERS

To know the satisfaction level of TCL‟s Customer, I asked to indicate the how much they

are satisfied of TCL attribute.

Statistics

How Satisfied

From The Price

Offered Buy TCL

How Satisfied

From The Quality

offered By TCL

How Satisfied

Order &

Delivery of TCL

How Satisfied

From Credit

Policy of TCL

How Satisfied

From Dealing

Person of TCL

How Satisfied

From Service

of TCL

N Valid 5 5 5 5 5 5

Missing 23 23 23 23 23 23

Table 19: Customers satisfaction level

Price

How Satisfied From The Price Offered Buy TCL


Valid neither satisfied nor dis satisfied 1 3.6 20.0 20.0

dissatisfied 4 14.3 80.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 20: Satisfied From the Price Offered Buy TCL

20% customers are neither satisfied nor dissatisfied.

80% customers are dissatisfied.

80%

20%

RELIABILITY ATTRIBUTE OF TCL

Like

Don’t Like

Chart 18: price satisfaction

Quality

How Satisfied From The Quality offered By TCL


Cumulative

Percent

Valid neither satisfied nor dis

satisfied

1 3.6 20.0 20.0

satisfied 4 14.3 80.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 21: Satisfied From the Quality offered By TCL

2o% customers are neither satisfied nor dissatisfied.

80% customers are satisfied.

Chart 19 quality satisfaction

20%

80%

How Satisfied From The Price Offered Buy TCL

neither satisfied nordissatisfied

dissatisfied

20%

80%

How Satisfied From The Quality offered By TCL

neither satisfied nordissatisfied

satisfied

Order & Delivery

How Satisfied from Order & Delivery of TCL


Valid dissatisfied 2 7.1 40.0 40.0

satisfied 3 10.7 60.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 22: Satisfied from Order & Delivery of TCL



Chart 20: order and delivery satisfaction Credit Policy

How Satisfied From Credit Policy of TCL


Cumulative

Percent

Valid dissatisfied 2 7.1 40.0 40.0

satisfied 3 10.7 60.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 23: Satisfied From Credit Policy of TCL

40%

60%

How Satisfied from Order & Delivery of TCL

dissatisfied

satisfied



Chart 21: credit policy

Dealing Person

How Satisfied From Dealing Person of TCL


Valid neither satisfied nor dissatisfied 1 3.6 20.0 20.0

satisfied 4 14.3 80.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 24: Satisfied From Dealing Person of TCL



Chart 22: dealing person

40%

60%

How Satisfied From Credit Policy of TCL dissatisfied satisfied

20%

80%

How Satisfied From Dealing Person of TCL

neither satisfied nor dissatisfied

satisfied

Service

How Satisfied From Service of TCL


Valid neither satisfied nor dissatisfied 1 3.6 20.0 20.0

satisfied 4 14.3 80.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 25: Satisfied From Service of TCL



Chart 23: service

Loyalty towards the Thirumalai Chemicals Limited

To know the customer loyalty towards the TCL, I asked to them what will they do if they

required Malic Acid but there is shortage of Malic Acid at TCL stockiest.

Statistics

N Valid 5

Missing 23

20%

80%

How Satisfied From Service of TCL

neither satisfied nor dissatisfied

satisfied


Valid wait as long as possible 2 7.1 40.0 40.0

buy from other sources 3 10.7 60.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 26: Alternate Mode when Shortage at TCL

40% customers wait for Malic Acid usage because they care about their

product‟s quality

60% customers buy its substitute or Malic Acid from other source.

Chart 24: loyalty

How often Customer buy Malic Acid

Statistics

N Valid 5

Missing 23

How often customer buy Malic Acid


Valid every month 3 10.7 60.0 60.0

every three months 2 7.1 40.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 27: How often customer buys Malic Acid

40%

60%

Alternate mode

wait as long aspossible

60% customers buy Malic Acid every month.

40% customers buy Malic Acid after every three months.

Chart 25: customer purchases

Malic Acid is better than citric acid

100% customers say that Malic Acid is better than Citric Acid.

Chart 26: customer purchase

Malic Acid is not so high as it used to be – Reason for fluctuation of

demand of Malic Acid

Statistics

fluctuation of demand

N Valid 5

Missing 23

60%

40%

customer makes purchase

every month

every 3 month

0%

20%

40%

60%

80%

100%

Malic Acid Citric Acid

Citric Acid

Malic Acid


Valid availability of substitute 2 7.1 40.0 40.0

expansive than substitute 3 10.7 60.0 100.0

Total 5 17.9 100.0


Total 28 100.0

Table 28: fluctuation of demand

40% customers think that its substitute affects its demand in the market

60% customers says its price affect the demand

Chart 27: fluctuation of demand

Future aspects/demand

100% customers say that demand of malic acid will increase in the future.

Chart 28: future aspects

40%

60%

fluctuation of demand

avialability of substitute

expensive than substitute

Increases Decreases Remain more orless Constant

100%

Future Demand of Malic Acid

MARKET RESEARCH

Fine & Specialty Chemicals

Fine and Specialty chemicals are low volume, high price/margin chemicals. They are

fragmented with large number of players. It has market around US$ 80 million p.a.The

major end user segments are Textile, Leather, paper, detergent, rubber, paints,

polyester, oil and gas etc. Fine and specialty Chemicals are growing very fast.

Major Players of Fine and specialty Chemicals-

India: ION Exchange, Balmer Lawrie, Dai Ichi Karkaria etc.

MNC: Ciba, Hoechst, Foseco, Nalco Chemicals, Clariant, ICI etc.

And many small Indian companies

Market Segmentation

The sector of Malic Acid is one of the fastest growing sectors in India, growing at 20%

yearly. Malic Acid who comes in Fine Chemical segment and which is highly organized.

The ratio of organized and unorganized segment is 80:20. In the overview of the

Chemical segments, it is seen that it is highly technology-intensive and demands a

great deal of capital investment.

The raw material of Malic Acid is Malic Anhydride. It belongs to Chemical Industry which

brings promises of huge growth. Malic Acid is that Chemical which is produced at a high

volume, it is high priced and usually targeted at a wide variety of markets. This chemical

is developed under the user's specifications which usually vary from one user to

another. The methods of development depend on the application and the function of the

chemicals.

Major consumers in the Fine chemicals segment:

Beverages

Confectioneries, preserves and bakery products and others

Technical area

Textile

Pharmaceutical and personal care products

In the Chemical segments overview it can be said that Malic Acid industry has grown

rapidly but even then there is still room for development. And this growth in the

Chemical segment can be achieved by the determined efforts of the government of

India and less interfering of international competitors like China.

International Marketing

Our international marketing strategy, supported by local specialized agents in each

country, aims at direct relationship with end users, to provide efficient service.

We assure our customers, deliveries at short notice, through our network in Europe,

North America, South America, Middle East, South East Asia, Far East and Australia.

Distribution Network

Thirumalai Chemicals Limited has the greatest distribution network in the country.

The company has a huge distribution network and a wide national marketing strategy.

The distribution network is focused on the following areas:

Reliable supply Enhanced customer service Maintaining quality of Malic Acid Technical Support After sales service

All these thrust areas of the distribution network of gives the company an upper hand in

the market over all other Chemical companies.

TCL has an effective and localized marketing network with regional offices in important

major cities of India.

Malic Acid distribution is done through –

C&F channels

Direct from company‟s website

Stockiest

Sales distributors

Bigger volumes are managed directly by the company.

TCL serves 1500 customers in India.

Price Volatility

The Malic Acid Chemicals industry has been affected by rise in price volatility for

years. Prices are less stable and are difficult to predict in recent times. As a matter of

fact, the uncertainty in prices of this Chemical has affected the development of the Malic

Acid market of India on a global front. The market of Malic Acid in India on the global

front is fairly large.

In the overview of the Malic Acid segment is that the prices of this product is very

volatile and depends totally on the international and national market. Even though the

international and Indian companies‟ prices are not justifiable, the Thirumalai producers

are forced to match it.

STRONG COMPETITORS

China which chemical industry is 5-6 times larger than India.

Taiwan

Korea

Gulf countries

Consumption & Appearance

TCL produces Malic Acid in huge amount and the consumption is about 1000

tones/annum in all over India. But the biggest competitor of Malic Acid is its substitute

Citric Acid. China imports Citric Acid in India in very low price in comparison of Malic

Acid. If the Malic Acid market price becomes Rs. 80/kg then Citric Acid market price

becomes about Rs. 65/kg. So mostly consumer prefers its substitute who is not using

Malic Acid in huge amount. Many customers use dry form of Fruits. The consumption of

Malic Acid in unorganized company is very less.

Production & Market Growth

Malic Acid: 8000 TPA

Malic Acid market growth is about 10% per year.

Biggest customer of malic acid is PepsiCo.

Analyzing profit of the company

The gross profit of TCL gradually increases if we see the gross profit Graph

Of 11 previous years:

Gross profit (In Lakhs Rs.)

1998-99 3146

1999-00 3803

2000-01 2285

2001-02 3276

2002-03 3256

2003-04 2942

2004-05 3553

2005-06 4009

2006-07 5963

2007-08 7190

2008-09 -4062

Chart 29: Gross profit of company

3146 3803

2285 3276 3256 2942

3553 4009

5963 7190

-4062

Gross Profit

In 2008- 09, the gross profit reduced because of recession.

If we see the gross profit chart from 2003-04 to 2007-08 company profit grow

averagely 25% per annum.

Chart 30: gross profit

Production of Food Acids by TCL

2007-08 5,606

2008-09 5210

Chart 31: production of food acid

KEY SUCCESS FACTORS OF THIRUMALAI CHEMICAL LTD. IN MALIC

ACID PRODUCTION

Application of superb engineering skills for better chemical formulations

2942 3553

4009

5963

7190

2003-04 2004-05 2005-06 2006-07 2007-08

Gross Profit

5000

5100

5200

5300

5400

5500

5600

5700

2007-08 2008-09

2008-09

2007-08

Customization of the chemical for specific end users requirements Technical knowledge how to be imported for better production More export oriented productions Formulation of policies for the better functioning of the industry Effective control on cost in necessary To ensure low cost of production, the sources from where the feedstock is

obtained and the prices are important Restructuring of operations is needed The export market should be focused on for enhanced profitability Proper Focus on unorganized sector

Risk & Concerns

Pressure on margins, high raw material prices availability of substitutes, indiscriminate imports, foreign exchange fluctuations, higher overheads, recession, stagnant markets are some of the factors which could impact adversely

Volatility in prices of the Raw Material as also the Company's end products are normal features in this line of business which can have bearing on the Company's operations

Future of the Malic Acid in Chemical Segment

Focus on improvement in efficient processes for enhanced productivity India to be one of the main source of base materials The demand of the segment depend on the demand of the end users The demand for the organic chemicals are dependent on the demand of the end

use products, so it would depend on the growth rate of the end use products industry like beverages, pharmaceuticals, confectionary, textile, etc.

The international price factor would affect the production and the national prices and the supply and would highly depend on this.

BCG Matrix

Placing product on BCG matrix results in 4 categories in a portfolio of a company:

1. Stars – high growth, high market share Stars are high growth businesses competing in the market. Often they need heavy investment to sustain their growth.

2. Cash Cows – low growth, high market share Cash Cows are low growth businesses with relatively high market share. These are mature successful businesses with relatively little need for investment.

3. Dogs – low growth, low market share

Dogs refer to businesses that have relatively low share in unattractive low growth markets. Organizations prefer to divest from dogs.

4. Question Marks – high growth, low market share These are the SBUs with low market share but which operate in higher growth market.

THIRUMALAI CHEMICAL LTD. ON BCG MATRIX

I put TCL in Question marks in the BCG matrix because TCL has a good market growth and opportunity also to continue it but its share market always fluctuate and this time its share market is low. We can see this figure:

SHARE MARKET OVERVIEW

TCL

SWOT ANALYSIS

STRENGTHS OF THE COMPANY

Long experience in the chemical business

Technical and Managerial competence to build world-class Chemical

Manufacturing and Distribution

Ability to absorb technology, develop processes for new products and

commercialize them

Excellent reputation in the industry at National and International levels

Proven history of successful European / US 'partnerships' with Customers,

Licensors, and Partners

Wide distribution network in India, Asia, North America and Europe

A rich heritage of entrepreneurial family values - integrity, commitment,

innovation and excellence

A long history of Social Activism and Social Entrepreneurship through our

Foundations and Trusts

OPPORTUNITIES

Company can increase its unorganized sector in India which is still untouched.

Demand for PAN remains stagnant in both domestic & international market due

to unusual market. With huge investment in infrastructure and Housing the

demand for PAN is expected to grow in the coming years To meet the growing

demand the consuming industries of PAN have expanded their capacities during

the last two years Subject to unforeseen circumstances your Company expects

to utilize the PAN plants to their full capacity

Better Technology can increase more production.

The growing market of Malic Acid is about 20% per year. Therefore it can work

on huge production.

The thousand chemicals industry is using about 20 segments and the growing

market of chemical is about 12% per year. Therefore It can touch many new

segments which has not realized through the company.

80% chemical companies are located in Gujrat. It has better scope to market its

product in south India.

WEAKNESSES AND THREATS

Lack of scale

Huge investment with long gestation

Major threats were Korea, Taiwan, China and Gulf

Environment

Mindset is largely for trading and not partnering

Social Enterprises

Thirumalai Charity Trust (TCT)

Thirumalai Charity Trust (TCT) was formed in 1970 with the belief that - Social

responsibilities of business are not optional but obligatory.

Today TCT manages Schools and Colleges (SIWS Schools, N.R. Swamy

College of Commerce, Thirumalai College of Science) in Bombay and Vedavalli

Vidyalaya Schools in Tamilnadu, and works on a variety of social causes

particularly in rural areas of Tamilnadu through an integrated approach to

development and by focusing on women's empowerment - Micro Business

Development, Alcoholism Rehabilitation and Education, Evening Learning

Centers, Health Services, Disability Programs, etc., - in over 60 villages of Tamil

Nadu.

Vedavalli Vidyalaya

In June 1994 the Group set up Vedavalli Vidyalaya, a co-educational school, with

a Vision to develop it as a model institution of education, to promote integrated

development of the child and to nurture excellence in learning.

Nearly 1700 children study in 3 Schools, in Vellore District, Tamilnadu from

Kindergarten through 12th Grade.

Employee of TCL

TCL has highly skilled and talented people to develop, manufacture

and market the highest quality products. The employees, professionals

with different skills, handle an array of diverse operation ranging from

Product and Process development, Engineering Production and

Quality Assurance, to Effluent Treatment, Safety, Health &

Environment, Marketing and Logistics to Customer Support and

Troubleshooting.

Experienced professionals steer crucial teams like marketing, finance,

human resources, manufacturing and R&D. Collectively, the team has

built the company into a respected and trusted partner to its customers

and suppliers.

TCL has an excellent culture of trust between employees and all

stakeholders.

LIMITATIONS, CONCLUSIONS

& SUGGESTIONS

Limitations

Research was limited for the certain parts of Delhi only.

The study is based on the perception, ideas and preferences of the respondent,

which are complex in nature and depend upon subjectivity of the individual.

Many times there was lack of cooperation from respondent for research.

The research was carried out in certain parts of Delhi only therefore finding &

suggestions are limited to those parts only.

Malic Acid has 80% organized customers who are big users of Malic Acid but I

got the list of unorganized customers. In them only 5 customers were organized.

Hence figures provided may not be accurate.

Conclusions

Working on this project was an enriching experience for me not only I got to know about

the Fine chemicals manufacturing process, its requirements, its market and pricing of

this product. And I also got the opportunity to be part of lower level marketing process. It

was wonderful experience to check my level of working in the corporate sector in the

field of marketing. During this project, I got some facts and these are:

It was found that TCL is the market leader in chemical industry in the domestic

market.

It was found that most of major customers who are mainly quality conscious

prefer Malic Acid.

Organized customers in this field are very much aware of Malic Acid nut

unorganized customers are not.

Quality of Malic Acid products are perceived as the best by all the customers. In

this competitive environment of Malic Acid, the rates are determined on the basis

of international prices.

Suggestions

Company should work on unorganized sectors which are facing ignorance by the

company.

Advertisement should be proper

The Malic Acid has used in beverages, pharmaceuticals, confectionary etc. which

market will never end. So company should find the customers more efficiently.

Mostly unorganized sector got the Malic Acid through dealer with extra high

price. So company should think about direct customer relationship or open

market.

ANNEXURE

QUESTIONNAIRE

The following questionnaire pertains to a Project being conducted by PGDM aspirants

under the guidance of Thirumalai Chemicals Ltd.

Name of the Company:

__________________________________________________________________

Address:

_____________________________________________________________________

Contact No._____________________Email Id: _____________________________

1. Currently are you the buyer of Malic Acid

(i) Yes ⃝ (ii) No ⃝

2. What is the Monthly consumption of Malic Acid

________________________________________________________________

3. For which purpose do you buy Malic Acid:

_______________________________________________________________

4. What factors of supplier would you prefer, when you are buying Malic Acid, (rate

the factor /attributes in order of preference)

I Price 1= Least Important 6=Most Important

Ii Quality

Iii Order & Delivery

Iv Credit Policy

V Brand Name

Vi Other (Pls. specify)_ _ _ _ _ _ _ _ _ _ _

5. From which Source do you buy Malic Acid

(I)TCL (ii) Import (iii) Others (Pls. specify)

6. How often do you buy Malic Acid

(I) Every Month (ii) Every 3 Month (iv) Every 6 Month (v) Once in

a Year

7. How do you make your order

(i) Direct contact with Source (ii) Through Dealer

(iii) Through the Internet (iii) Others_____________________________

(Pls. Specify)

8. You are the customer of Thirumalai Chemicals Ltd. Currently :Yes

No

If No what is the reason:

_________________________________________________________

9. Which thing you like most of Thirumalai Chemicals Ltd. (you may Mark more

than one)

I Price

Ii Quality

Iii Order and Delivery

Iv Credit Policy

V Technical Support

Vi Reliability

vii Other (Pls. Specify)_ _ _ _ _ _ _ _ _ _ _ _ _ _ _

10. For each statement please circle the appropriate alphabet to indicate whether

you are :

A- Satisfied B -Neither Satisfied nor Dissatisfied C- Dissatisfied

i How satisfied are you from the Price offered by TCL A B C

Ii How satisfied are you from the Quality given by TCL A B C

Iii How satisfied are you Order & Delivery Process of TCL A B C

Iv How satisfied are you Credit Policy of TCL A B C

v How satisfied are you from dealing person of TCL A B C

VI How satisfied are you service from TCL A B C

11. One good thing about TCL

____________________________________________________________

12. Any Poor Experience with TCL you want to share

____________________________________________________________

13. Any suggestion you want to give to TCL

_____________________________________________________________

14. If Malic Acid supply is in shortage from TCL ,what would you do

(i) Wait as long as possible (ii) Buy from other Source (iii) Import

(iv) Stop Production

15. From your Point of view what is the reason the demand of Malic acid is not so

high as it used to be: (You may Mark more than one)

(i) Availability of substitute Product

(ii) Malic Acid is Expensive than Substitute

(iii) Quality perception of Malic Acid is not so good

(iv) Supply of Malic Acid is not regular as requirement

(v) Others (Pls. Specify) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

16. In the coming year, in your opinion the Demand for Malic Acid is likely to:

(i) Increase ⃝ (ii) Decrease ⃝ (iii) Remain more or less Constant ⃝

17. How you rate TCL as overall (On 10 Marks) :………………………………………

Signature of Respondent_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

THANK YOU

BIBLIOGRAPHY

Reference Book

Marketing Management - Philip Kotler

Research Methodology – William Zikmund

Websites

WWW.Thirumalaichemicals.com

Google search engine

http://www.thirumalaichemicals.com/

fine chemicals of thirumalai chemicals ltd

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