Fine Chemicals of Thirumalai Chemicals Ltd.

IDEAL PARTNER FOR YOUR CHEMISTRY NEEDS
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
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
(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
(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 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.
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 Iran Romania

Australia Ireland Russia
Austria Italy SaudiArabia
Bangladesh Japan Singapore
Belgium Jordan SouthAfrica
Brazil Korea Spain
Bulgaria Malaysia SriLanka
Canada Mexico Sweden
Chile Morocco Syria
China Netherlands Taiwan
Czech NewZealand Thailand
Denmark Nigeria Tunisia
Egypt Norway Turkey
Finland Pakistan U.A.E.
France Peru UnitedKingdom
Germany Philippines UnitedStates
Greece Poland Venezuela
Indonesia Portugal 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
CRUDE OIL
Naphtha
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
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 P H 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
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
Nature of response
Respondent
14.3
35.7 Non Respondent
21.4
Not Available
28.6 not found
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
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
user
20% malic acid

substitute
50%
30%
used but left now
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.
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
Usage of Malic Acid

7%
7%
4% Fruit and beverage
confectionary
Pharmaceuticals
82%
missing
Chart 3: Showing usage of Malic Acid
USAGE OF MALIC ACID

Fruit and Beverage Confectionary
Pharmaceuticals
4040
20
Chart 4: Showing usage of current buyer

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 Rating of Rating of Rating of Rating of
buying buying Rating of buying buying buying buying
attribute for attribute for attribute for order attribute for attribute for attribute for
price quality and delivery credit brand 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
price attribute
price attribute
60%
20% 20%
very most important

most important
important
less important
least important
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
60%
40%
20%
0%
Chart 6: Quality attribute

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
70%
60%
50%
40%
30%
20%
10%
0% order and delivery attribute
Chart 7: order & delivery

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
0.8
0.6
0.4
0.2 credit policy atrribute
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
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

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
70%
60%
50%
40%
30%
brand attribute
20%
10%
0%
very most most important less least very least
iportant important important important important
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
50%
40%
30%
20% behaviour attribute
10%
0%
very most most important less least very least
important important important important important
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
SOURCE
TCL
40% 20% Open Market
40% Dealer
Chart 11: buying source

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
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
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
PRICE ATTRIBUTE OF TCL

20%
Like
80%
Don't Like
Chart 12: price attribute of TCL

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
QUALITY ATTRIBUE OF TCL

20%
Like
80% Don’t Like
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
CREDIT POLICY ATTRIBUTE OF TCL
20% Like
Don’t Like
80%
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
ORDER AND DELIVERY ATTRIBUTE OF TCL
40%
Like
60%
Don’t Like
Chart 15: order & delivery attribute
Technical support attribute of TCL
technical support attribute of TCL

Cumulative
Frequency Percent Valid Percent 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
TECHNICAL SUPPORT ATTRIBUTE OF TCL

20%
Like
80% Don’t Like
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
RELIABILITY ATTRIBUTE OF TCL
20%
Like
80% 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 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
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.
How Satisfied From The Price Offered Buy
TCL
20%
neither satisfied nor
dissatisfied
80% dissatisfied
Chart 18: price satisfaction
Quality
How Satisfied From The Quality offered By TCL
Cumulative
Valid neither satisfied nor dis 1 3.6 20.0 20.0

satisfied
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.
How Satisfied From The Quality offered By

TCL
20%
neither satisfied nor
dissatisfied
80%
satisfied
Chart 19 quality satisfaction

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

How Satisfied from Order & Delivery of TCL
40%
dissatisfied
60%
satisfied
Chart 20: order and delivery satisfaction
Credit Policy
How Satisfied From Credit Policy of TCL
Cumulative
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

How Satisfied From Credit Policy of TCL

dissatisfied satisfied
40%
60%
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

How Satisfied From Dealing Person of TCL
20%
neither satisfied nor dissatisfied
80% satisfied
Chart 22: dealing person

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

How Satisfied From Service of TCL
20%
neither satisfied nor dissatisfied

80% satisfied
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
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.
Alternate mode
wait as long as
40% possible
60%
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

 60% customers buy Malic Acid every month.
 40% customers buy Malic Acid after every three months.
customer makes purchase
40%
every month
60%
every 3 month
Chart 25: customer purchases
 Malic Acid is better than citric acid

 100% customers say that Malic Acid is better than Citric Acid.
100%
80%
60% Citric Acid

Malic Acid
40%
20%
0%
Malic Acid 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
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
fluctuation of demand
40%
avialability of substitute
60%
expensive than substitute
Chart 27: fluctuation of demand
Future aspects/demand
100% customers say that demand of malic acid will increase in the future.
Future Demand of Malic Acid
100%
Increases Decreases Remain more or

less Constant
Chart 28: future aspects

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
Gross Profit
7190
5963
3803 4009
3146 3276 3256 2942 3553
2285
-4062
Chart 29: Gross profit of company

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.
Gross Profit
7190
5963
4009
3553
2942
2003-04 2004-05 2005-06 2006-07 2007-08
Chart 30: gross profit
Production of Food Acids by TCL
2007-08 5,606
2008-09 5210
5700
5600
5500
5400
2008-09
5300 2007-08
5200
5100
5000
2007-08 2008-09
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

 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
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:
SHARE MARKET OVERVIEW

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
Ii Quality Important
Iii Order & Delivery 6=Most
Iv Credit Policy Important
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

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IDEAL PARTNER FOR YOUR CHEMISTRY NEEDS

POST GRADUATE DIPLOMA IN MANAGEMENT

Under the guidance of

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

Name of the Student

When I did survey about Malic Acid I found these facts:

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

I, Chanda Kumari student of BUSINESS SCHOOL OF DELHI, hereby declare that I

CONTENTS PAGE NO.

Introduction & Background 1-7

Limitations, conclusions & suggestions 54-55

TABLES No. Contents Page No.

31 Production of Food Acid 48

INTRODUCTION AND BACKGROUND

Introduction of Thirumalai Chemical Ltd.

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

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

To provide a wider range of products and services

Products of the company

5. L(+) Tartaric Acid

Research & Development

Type: Public Ltd. Company

Nature of Business: Manufacturer

Products: Petrochemicals, Food Additives,

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

Factory: 25-B, Sipcot Industrial Complex, Ranipet,

Key People: Mr. S. Sridhar,

Products: Phthalic Anhydride, Malic Acid,

BSE Stock code: 500412

Associate companies: TCL Industries (M) Sdn.Bhd.Malaysia

Argentina Iran Romania

Rationale behind choosing the project

INTRODUCTION OF PROJECT PRODUCT

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

Chemical Name : Maleic Acid

Chemical formula : C4H4O4

Synonyms : Butenedioic acid, Maleinic acid, toxilic acid

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

Storage & Handling

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

Benzene p-xylene o-xylene

Maleic Anhydride Commodity chemicals Phthalic Anhydride

DL & L+ Tartaric Acid

Fumaric Acid Fine Chemicals

Take precautionary measures against static discharges.

Keep away from sources of ignition – No smoking.

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

tightly sealed in a dry place.

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

1. The food standards (Preserves) order – 1953

Presentation of Food Adulteration Act 1995