Professional Documents
Culture Documents
FINE CHEMICALS
MALIC ACID
CHANDA
2010
Malic Acid-The launch of high price substitute food chemical in India and succeeded
BUSINESS SCHOOL OF DELHI
(AICTE APPROVED)
28/1 Knowledge Park-III
Greater Noida
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
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.
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
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).
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 declare that the information submitted is true and original to best of my knowledge.
Chanda Kumari
TABLE OF CONTENTS
Annexure 56-59
Bibliography 60-61
LIST OF TABLES
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.
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.
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.
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
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).
6. Specialty Chemicals
Succinic Acid
Succinic Anhydride
Maleic Acid
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 Polymer
Powder additives
coating Rubber
Agrochemicals chemicals
Plasticizers Leather
Pharmacy chemicals
Intermediates Food
Unsaturated Polyester Beverage &
Resins Confectioneries
Esters Bakery
Paints goods
Textile Feed
Leather Construction
Detergent materials
Bulk Metal
drugs Cleaning
Personal Care Electroplating
&Cosmetics
Water
Adhesives
treatment
Intermediates
Flavors &
Fragrances
Pigments & Dyes
C OMPANY P ROFILE
Name of the Company: Thirumalai Chemicals Ltd.
Major Markets: Indian Subcontinent, East Asia, Middle East and South East
Asia
Founded: 1975
Listing on Stock Exchanges: Mumbai (BSE) and National Stock Exchange (NSE)
Customer of TCL
IN INDIA
IN INTERNATIONAL MARKET
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
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
CRUDE OIL
Naphtha
Downstream product
Malic Acid
Succinic Anhydride
Maleic Acid
Storage & Handling
Handling
General advice : Ensure thorough ventilation of stores and work areas.
Protection against
Fire and explosion : Avoid dust formation. Dust can from an explosive mixture
temperature class.
Storage
General advice : Protect against moisture. Containers should be stored
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.
PLUM 97%
APPLE 95%
PEACH/CHERRY 94%
BANANA 73%
PEAR 67%
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 –
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
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
Molecular Formula : C4H6O6
Molecular Weight : 150.09
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
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
Molecular Formula : C4H6O4
Molecular Weight : 116.07
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
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
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
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
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
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.
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
Enquiry Mode
Structural approach
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
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
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
Nature of response
Respondent
14.3
35.7 Non Respondent
21.4
Not Available
28.6 not found
I did survey on the basis of organized and unorganized sector of 28 people and finally I
got these results
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
Missing 18
users
Total 28 100.0
user
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.
Usage of Malic Acid in different segment
Statistics
usage
N Valid 5
Missing 23
Usage
Total 28 100.0
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
Total 28 100.0
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
price attribute
price attribute
60%
20% 20%
Quality
Rating of buying attribute for quality
Total 28 100.0
Due to quality factor Malic Acid has covered all organized sector. In a rational view –
20% customers considered it as an less important factor
20% customers considered it as an important factor
60% customers considered it as a very most important factor
60%
40%
20%
0%
Total 28 100.0
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
20% customers considered it as an important factor
60% customers considered it as a most important factor
70%
60%
50%
40%
30%
20%
10%
0% order and delivery attribute
Total 28 100.0
0
very most most important less least veryleast
important important important important important
Chart 8: credit policy attribute
Brand
rating of buying attribute for brand
Total 28 100.0
Total 28 100.0
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 an important factor
40% customers considered it as most important factor
50%
40%
30%
20% behaviour attribute
10%
0%
very most most important less least very least
important important important important important
Statistics
N Valid 5
Missing 23
Total 28 100.0
SOURCE
TCL
40% 20% Open Market
40% Dealer
Attributes of company
It explains the company attribute towards the customer which they like most.
Statistics
quality
price attribute attribute of order and delivery credit policy technical support reliability
of TCL TCL attribute of TCL attribute of TCL attribute of TCL attribute of TCL
N Valid 5 5 5 5 5 5
Missing 23 23 23 23 23 23
Table 12: showing attributes of company
Total 28 100.0
Like
80%
Don't Like
Total 28 100.0
Like
80% Don’t Like
Total 28 100.0
20% Like
Don’t Like
80%
Total 28 100.0
40%
Like
60%
Don’t Like
Total 28 100.0
Like
80% Don’t Like
Total 28 100.0
20%
Like
80% Don’t Like
Statistics
How Satisfied How Satisfied How Satisfied How Satisfied How Satisfied How Satisfied
From The Price From The Quality Order & From Credit From Dealing From Service
Offered Buy TCL offered By TCL Delivery of TCL Policy of TCL Person of TCL of TCL
N Valid 5 5 5 5 5 5
Missing 23 23 23 23 23 23
Table 19: Customers satisfaction level
Price
Total 28 100.0
20%
neither satisfied nor
dissatisfied
80% dissatisfied
Quality
How Satisfied From The Quality offered By TCL
Cumulative
Frequency Percent Valid Percent Percent
Total 28 100.0
Table 21: Satisfied From the Quality offered By TCL
Total 28 100.0
40%
dissatisfied
60%
satisfied
Credit Policy
How Satisfied From Credit Policy of TCL
Cumulative
Frequency Percent Valid Percent Percent
Total 28 100.0
40%
60%
Dealing Person
Total 28 100.0
Table 24: Satisfied From Dealing Person of TCL
20%
80% satisfied
Total 28 100.0
Table 25: Satisfied From Service of TCL
20%
Statistics
N Valid 5
Missing 23
Frequency Percent Valid Percent Cumulative Percent
Total 28 100.0
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.
Alternate mode
wait as long as
40% possible
60%
Statistics
N Valid 5
Missing 23
Total 28 100.0
40%
every month
60%
every 3 month
100%
80%
20%
0%
Malic Acid Citric Acid
Statistics
fluctuation of demand
N Valid 5
Missing 23
Frequency Percent Valid Percent Cumulative Percent
Total 28 100.0
40% customers think that its substitute affects its demand in the market
60% customers says its price affect the demand
fluctuation of demand
40%
avialability of substitute
60%
expensive than substitute
Future aspects/demand
100% customers say that demand of malic acid will increase in the future.
100%
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.
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.
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
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
Gross Profit
7190
5963
3803 4009
3146 3276 3256 2942 3553
2285
-4062
Gross Profit
7190
5963
4009
3553
2942
2007-08 5,606
2008-09 5210
5700
5600
5500
5400
2008-09
5300 2007-08
5200
5100
5000
2007-08 2008-09
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
BCG Matrix
TCL
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:
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) 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.
Address:
_____________________________________________________________________
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
Ii Quality Important
Iii Order & Delivery 6=Most
Iv Credit Policy Important
V Brand Name
Vi Other (Pls. specify)_ _ _ _ _ _ _ _ _ _ _
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
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:
Signature of Respondent_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
THANK YOU
BIBLIOGRAPHY
Reference Book
Marketing Management - Philip Kotler
Websites
WWW.Thirumalaichemicals.com