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  • 1. PROJECT REPORT<br />ON<br />“STUDY THE MARKET POTENTIAL FOR CHEMTURA AGROCHEMICAL PRODUCTS IN AMBEGAON TALUKA, DIST- PUNE. ”<br />At<br /> Chemtura Chemicals India Pvt. Ltd. Mumbai. <br />BY<br />Kiran Nandkishor Ganjale.<br />PGDM (Agri. Business Management)<br />2010-2011<br />FOR PARTIAL FULFILLMENT OF THE COURSE<br />PGDM [AGRI BUSINESS MANAGEMENT]<br /> MITCON INSTITUTE OF MANAGEMENT<br />BALEWADI, PUNE- 411045 <br />2009-2011<br />ACKNOWLEDGEMENT<br />I owe a great deal to MITCON Institute of management for laying the building blocks of logic and pragmatism in my life. This report, in a way is a reflection of these values. The organizational traineeship segment (OTS) provided me with a unique opportunity of working with an organization.<br />I extend heartiest gratitude towards our project guide Mr. Hemant N. Chaudhari (Territory Manager) for his constant motivation and encouragement. With his guidance and support I could learn a lot about how industrial research is carried out and projects are professionally handled.<br />I would like to express my earnest gratitude and thanks to our faculty guide Mr. Amit Kane for her support and kind blessings.<br />I also grateful to all of them who are directly or indirectly involved in driving this project to a success.<br /> Mr. Kiran N. Ganjale.<br /> <br />INDEX.<br />Sr. No.TopicsPage No1Executive Summary 2Industry Profile 3Company profile4Research Problem and its background 5Review of Literature. 6Objectives and Scope 7Research Methodology 8Data Presentation and Analysis 9Findings10Suggestion11 Limitations and scope for further studies 12Conclusion13 AnnexureReferences Other relevant documents, product catalogues, charts, graphs, copy of the questionnaire, etc <br /> EXECUTIVE SUMMARY<br /> As I cover Ambegaon Taluka in Pune Districts under this project, Which is very popular for Horticulture crops like fruits and vegetables and Agronomical crops like cereals, pulses in Maharashtra. There is lot of demand for fruits and vegetables from this district in the market. But from last some year’s production of fruits and vegetables goes down by attack of different diseases and pests. Because of different types of pest observed in the field which destroy a whole plant within a few days.<br /> The farmers and floriculture companies have used or are using different pesticides to control pests but they are not satisfied with them. Because of these pesticides, insecticides are not spread or penetrate properly and mainly there is no strong result in rainy season, Because rain wash pesticides, insecticides. Day by day it’s become very difficult task to control of pests to the farmers hence the effect of this most of the farmers prefer to use stickers. <br /> There are wild range of stickers available in market but farmer preferred only quality products. Chemtura Silwet-Gold is the only Product which has ability not only to reduce the chemical dose but also help in spreading and penetrating of chemicals on the surface of the leafs thoroughly. This improved spray coverage in many cases enhance the performance of productive chemicals (i.e. insecticide and pesticides) and enables reduced volumes. Silwet-Gold is pure Silicon Base Product and contains about 99% of pure Non-sticky silicon. The efficiency of Chemtura Silwet-Gold is more than any other silicon base product in India. <br /> In market only quality product are preferred by farmer and retailers. It’s also found that more than 50% of farmers are unsatisfied due to quality reason.<br />The product awareness can help to establish product in the market; in product awareness company employees and retailers are the main persons. Other important sources of information are literature and field demonstrations. <br /> <br />INDUSTRY PROFILE<br />Agrochemicals also known as Pesticides are substance or mixture of substances that are used to avert, destroy or control any kind of pests or unwanted type of plants or animals that cause harm to crops or hampers the normal growth process of a crop. As per a Government of India estimate of 2002, value of crop losses caused due to non-usage of pesticides was around Rs 90,000 crore. Thereon, assuming losses grew at an average 2%, total losses would have amounted to Rs 101,355 crore in Financial Year2009, a staggering 2.2% of India's GDP.<br />Global Agrochemical Industry:<br />Global Agrichemical industry has grown at an average 7.1% over Current Year2001-08 to US $41.7 billion. For Current Year2008, the industry registered outstanding growth of 25% year on year on the back of volume growth andincrease in price.<br />On the other hand, the Indian Agrichemical Industry was estimated at around US$1 billion i.e. Rs5,000 crore at the end of Financial Year 2009. In Financial Year2009, overall industry witnessed marginal volume decline, but saw a price increase of 10-12%.<br />Markets and Consumption:<br />North America, with a share of 26% in total consumption, is the largest consumer of agrichemicals globally. The Asia-Pacific and EU regions consume almost the same amount of agrichemicals. India's consumption of agrichemical is one of the lowest in the world, standing at 0.48kg per hectare. This compares very poorly with other countries that have less arable land under coverage. For instance, countries like Taiwan, Japan, Holland and Korea have higher consumption than India. We believe this again highlights the under usage of agrochemicals by Indian farmers and unexploited opportunity at bay for the agrochemical companies. India produces approximately 16% of the world's total food grain production and uses only around 2% of pesticides.<br />India Share Of Pesticides Consumption-2008:<br />Important Player in the Pesticide Sector:<br />CompanySales (us$bn)Bayer9.3Syngenta9.1Dupond7.9Basf4.9Dow4.5Monsanto4.8<br />Company Profile<br />Chemtura Corporation is chemistry, which is focused on improving the quality of products that make life better for everyone.<br />Chemtura Corporation products are used in the building and construction, consumer, electrical and electronics, industries, and transportation industries to make products stronger, more durable, safer, cleaner and more efficient.  Chemtura’s gricultural products helps to increase crop quality and crop yield around the world. <br />Everywhere you go and everything you do, Chemtura’s products are there: in life-saving medicines, in more-efficient cars, in safer tires, in longer-lasting flooring for your home. Chemtura’s flame retardants helps to save lives; Chemtura’s pool products keep your pool sparkling clean; Chemtura’s plastic additives are used in safety helmets to safeguard your family.<br /> Chemtura Corporation core values aren’t just words on paper.  They embody how Chemtura employees work every day and how we interact with our customers, suppliers, fellow community members and one another. Living our values is an important part of who we are:  a company focused on improving performance in everything we do. <br /> Chemtura's Crop Protection business, a global leader in seed treatment and miticides, agro chemical focuses on worldwide niche markets.<br /> Chemtura's products are formulated for specific crops and geographic regions to enhance quality and increase yield. Chemtura products protect seeds from pests and disease to aid in germination; protect growing plants from insects, mites and diseases; eliminate unwanted weeds; and assist with pest control in soil preparation, commodity storage, and post-harvest food processing.<br /> Chemtura’s products include insecticides, herbicides, fungicides, miticides, seed treatment products, plant-growth regulants, and fumigants. <br />Chemtura Corporation, with 2009 sales of $3.5 billion, was formed in 2005 with the merger of Crompton Corporation and Great Lakes Chemical Corporation.  Chemturas history – which includes Crompton & Knowles Corporation, Uniroyal Chemical Corporation and Witco Corporation – reflects more than 100 years of growth and innovation. Chemtura has approximately 4,600 employees in research, manufacturing, sales and administrative facilities in every major market of the world.  they are a leading global supplier of plastic additives, including flame retardants; a leading manufacturer of pool and spa products; a global leader in seed treatment and miticides in the agricultural market; the largest component supplier to the lubricants industry; and a top global producer of urethane polymers.<br /> <br />Chapter-1<br />RESEARCH PROBLEM & ITS BACKGROUND:<br />For any marketing research first & foremost important step is to define the topic for which one should well about the problem area from which we can set certain objective & for fulfilling objective one should define topic in proper manner considering all the factors to be studied by the researcher.<br />Research Problem:<br />Before entering or after entering in to business it is necessary to know the market potential Which is the largest volume of sales possible in given area & available to every individual as a company such that one can formulate the strategy to get maximum market share so the problem was to know the market size in terms of sales volume & sales value. There are many big players like Syngenta, Bayer, BASF, Dow Chemicals, DuPont, UPL, Sumitomo doing the business in this area which makes competition even tougher along with these one should know the small players as well which can be considered as industry rival.<br />Research Background:<br />Chemtura Chemicals Pvt. Ltd. Is newly entered in the Agrochemicals Business by starting new venture under the name CHEMTURA AGRO SOLUTIONS PVT. LTD, U.S.A Ambegaon is an area where land under tomato cultivation is near to 1 lac acre which is the main crop, alongside farmers are growing vegetable crop like Onion, & fruit crops like Pomegranate, grapes etc. This is proving to be huge potential in this area, because of this it is an attraction to everyone to do the business in his area. There are many big players like BASF, Bayer, Syngenta, Monsanto, DuPont, doing the business in this area which makes competition even tougher. <br /> Hence it is better to know the market very well before & even after entering in to the business such that once we are familiar with the kind of environment present in to the market there will be more convenience in formulating new & innovative Marketing strategies to increase the business& also to edge out the competition. Studying the existing brands of Sticker & Pesticides & to find out the market share of other major & local brands of Sticker, pesticides that particular area of Junner Taluka. Also to know who are the brand leaders, brand challenger & low level brands in the market.<br />Chapter-2<br />Review of Literature<br />Literature review is an opportunity to review the previous studies on the same topic on which we are working. Since the topic is in its initial phase. No records of previous studies are available. So we have limited this chapter to some concepts only.<br />Through literature review we have tried to explain some concepts on which the project has been carried out and also the concepts which have come across while doing this project.<br />While doing this project, marketing concepts like Market potential, Market channel development, Market Segmentation, Market share & Technical concepts like Sticker, pesticides etc.<br />Market Potential:<br /> An estimate of the maximum possible sales of commodity, a group of commodities or a service for an industry in a market during a stated period. Estimated size of total present or future market. Alternatively the maximum share of market which can be reasonably achieved during a defined period.<br />Market Channel in Sticker & Pesticides:<br /> Usually in the market, most of the companies are not selling their goods to consumers, some intermediaries constitute a marketing channel. <br /> Kotler defines marketing channels are the sets of interdependent organizations involved in the process of making a product or service available to the customers.<br />Major Chain players in the industry: <br /> Distributor:<br />One who sells mainly to the dealers or directly to the retailers with distributionship of one or more than one agrochemical companies.<br />Dealer:<br />One who purchase from the distributor and sales to farmers in small quantity.<br />Preferred Dealer:<br />One who purchase from company & sell it to customers.<br />Market Share:<br /> The percent share of the total sales of a given type of product or services that are attributes to a given company.<br />Market Segmentation:<br />To divide a market by a strategy directed at gaining a major portion of sales to a subgroup in a category rather than a more limited share of purchases by all category users.<br />Technical Definitions:<br />Sticker:<br />Sticker is an all purpose adjuvant to spray solution that helps to stick and spread on all plant parts and does not allow the solution to wash out in rains.Benefits of Sticker: Sticker provides more uniform spray deposit on plant surfaces and improves coverage of solution.It  improves the effectiveness of the ingredients of the solution.It is non – corrosive to spraying equipments.It helps in effective control of the noxious pests like mealy bugs, scale insects and borers.It  does not change the pH of the solution. Its pH is neutral i.e. 7-7.5.It keeps the drip irrigation system clean and does not allow salts to deposit and choke up the drippers.It is the best alternative to replace acid as a cleaning agent as it avoids harmful effects of acids.It  helps to retain the moisture and liquid fertilizers in the root zone of the plants and so it is very useful in shallow, sandy and llight soils.It increases the effectiveness of spray due to which production is increased and quality of the produce is highly improved.It saves quantity of solution and thereby saves money.It given astonishing results on all the glossy leaves such as banana, onion, pomegranate, etc. This is its unique character.<br /> SILWET GOLD<br /> <br />Silwet Gold, a new organosilicon based formulation works as an excellent adjuvant making agrochemicals more effective. It is a super spreader for soluble liquid and emulsifiable concentrate formulations (herbicides, fungicides, insecticides, acaricides, growth regulators and foliar nutrients) helps in spray volume reduction, improved spray coverage and makes all agrochemicals further effective.<br />Silwet Gold outperforms conventional surfactants because of the high specificity of their trisiloxane structure. It is the small, compact nature of the trisiloxane hydrophobe that provides its critical performance characteristics like extreme reduction of surface tension, exceptional wetting & spreading and its related stomatal infiltration. <br />For more than two decades, Silwet Gold surfactants have been generating positive, measurable and reproducible result in agriculture application around the world. This proven technology will do wonders for Indian farmers when they use Silwet Gold. Chemtura will provide details on product formulation of Silwet Gold adjuvant; provide technical support, hydrolytic stability details to the farmers to maximize performance and productivity. <br />Uses of Silwet Gold will increases productivity by enhancing the spray coverage and thereby reducing the spray volumes. It can also help in reducing the chemicals rain fastness and thereby ensure expected level control of weeds, pests and diseases.<br />Productivity boots in agriculture can take many forms: Increased crop yield, Enhanced crop growth, Improve crop quality and Lower production costs. These are achievable only when you achieve excellent control of weeds, pests & diseases.<br /> Chapter-3<br /> PROJECT OBJECTIVES<br />To study the farmer’s view over new brand.<br />Positioning and Pricing of prevailing brands.<br />To study the usage of Sticker brand is in the area.<br />To know the reason and purpose of using specific brand’s.<br />To study the market potential of Chemtura brand Silwet Gold.<br />To understand dealer and farmer’s view over Chemtura Silwet Gold.<br />To analyze the prevailing companies promotional activities.<br />SCOPE OF THE STUDY<br />Area – Junner area which included Narayangaon, Otur, Aalephata, Khodad, etc which comes under Junner taluka district Pune.<br />The research was designed to know the following<br /> <br />
    • Consumer reactions are important considerations in improving the brand of product or services. Consumers were interviewed to ascertain the reasons behind their purchase of products.
    To assess the present position of Chemtura product in the market.<br />To study the awareness of Chemtura products<br />To take some ideas from framer to improve brand of products. <br />To study market share of Chemtura’s Silwet Gold Product.<br />Chapter-4<br />RESESRCH METHODOLOGY<br />965835982853Research proposal was preparedData collection from dealers/Retailers and farmersConclusions<br /> RESEARCH PURPOSE<br />To assess market potential of Silwet Gold, Customer (Farmer and Retailers) awareness, Demand from Market and their feedback. <br />RESEARCH OBJECTIVES<br />To study the farmer’s view over new brand.<br />Positioning and Pricing of prevailing brands.<br />To study the usage of Sticker’s brand is in the area.<br />To know the reason and purpose of using specific brand’s.<br />To study the market potential of Chemtura brand Silwet Gold.<br />To understand dealer and farmer’s view over Chemtura Silwet Gold.<br />To analyze the prevailing companies promotional activities.<br />To carry out promotional activity of Chemtura’s New Product “Temprano”.<br />RESEARCH APPROACH<br />The questionnaire was prepared to measure the potential of the farmers, their needs, preferences, and intensity of behavior respectively.<br />SAMPLING PLAN<br />The judgment-sampling plan is used for the research project.<br />SAMPLE SIZE<br />Total sampling farmers were randomly taken from Junner taluka of the Pune District. The size varies from each area-to-area. Narayangaon, Savargaon, Khodad etc.<br />SAMPLING UNIT<br />Individual farmers, dealers, sub-dealers, will be narrated the questions and the respective questionnaire.<br />DATA COLLECTION INSTRUMENT<br />For collecting the data from the selected sample size use the structured questionnaire format and adopted the personal interview, farmers meeting, method for collecting data.<br />SOURCES OF DATA COLLECTION<br />The task of data collection begins after the research problem has been defined. While deciding about the method of data collection to be used for the study it should be kept in mind two types of data primary data and secondary data.<br />Chapter-5<br />ANALYSIS OF CHEMTURA PRODUCTS<br />Chemtura Crop Protection business, a global leader in seed treatment and miticides, focus on worldwide niche markets.<br />Chemtura Products are formulated for specific crops and geographic regions to enhance quality and increase yield. Chemtura products seed from pest and disease to aid in germination; protect growing plants from insect, mites and diseases; eliminate unwanted weeds; and assist with pest control in soil preparation; commodity storage and post-harvest food processing.<br />Chemtura products include insecticides, herbicides, fungicides, miticides, seed treatment products, plant-growth regulators and fumigants.<br />Range of Products (In India):<br />Trade NameTechnical Name<br />ACRICIDE<br />FloramiteDifenazateFlumiteTetrazineOmitePropargiteSIMBAPropargiteMASTAMITEPropargiteTempranoAbamactin<br />IGR ( Insect Growth Retardant)<br />ADEPTDiflubenzuron 25%WPBilarv 2%GDiflubenzuron 2%TabBilarv 2%TDiflubenzuron 2% TabBilarv 25%WPDiflubenzuron 25%<br />SURFACTANT<br />Silwet GoldSuper Spearder<br />FUNGICIDES<br />MAXILThiophanate Mathyle 70%wpDEFENDMancozeb 75%wpMALLTHexaconazol 5%scSPOT FREECaebendazim 50%wp<br />HERBICIDES:<br />MAXWEEDGlyphosate 41% SLVARVEGlyphosate 41% WGMOOLAHClodinafop proprglyl 15%WPPANTRAQizalfop-P-Tfuryn 4.41%RANGOQizalfop-P-Tfuryn 4.41%MERPIERPretilachlor 50% ECMOPUPPendimethalin 30%ECMOSSATParaquat 24%SL<br />INSECTICIDES:<br />MASUTAAcetamiprid 20%SPMATRIXAcephate 5%SPMERITE ALPHAAlphamethrin 10% ECMAKATACartap Hydrochloride 4% GRMOGAMBOImidacloprid 17.8% SLMOXAIndoxacarve 14.5% SLMUKKAChlorpyriphos 20% ECMAXTRADEEmamectin 5% SG<br /> Chapter-6<br /> ANALYSIS OF FARMERS <br />A study was made to find out reaction of the farmer-ultimate consumer and the Dealer in Junner Taluka (Dist- Pune). The collected data from the farmer was tabulated, analyzed and interpreted.<br />Observation No. 1<br />Number of farmers selected for study<br />Name of TalukaNumber of Farmers interviewedJunner200<br />Note – Total 200 Number of farmers interviewed in Junner Taluka.<br />Observation No.2<br />Usage of Sticker<br />FarmerPercentage Sticker User18090% Sticker Non-user2010%Total200100%<br />Note – Total 200 Number of farmers interviewer.<br /> <br />Conclusion:<br /> On the basis of above data, it is concluded that about 90% farmers are using sticker in this area.<br /> <br /> Observation No. 3<br />Source of Information for Plant Protection<br />FarmerPercentageDealer11055%Company employees4422%Innovative farmer147%Literature, News Pepper105%Field Demo168%TV Radio Adv. 063%Total200100%<br />Note – Total 200 Number of farmers interviewed.<br />Conclusion:<br /> On the basis of above data, it is concluded that, the major source of information for plant protection to the farmer are Dealer.<br /> Observation No. 4<br />Point of Purchase for Farmers<br />SourceFarmerPercentageDistributor4221%Dealer/Retailer14472%Company employees147%Total200100%<br />Note – Total 200 Number of farmers interviewed.<br /> <br />Conclusion:<br /> On the basis of above data, it is concluded that more than 70% farmers purchases agrochemicals from dealers & retailers. <br /> Observation No. 5<br />Expectations from New Product<br />ExpectationsFarmerPercentageHigh Conc.2412%Durability8040%Low Price6432%Packing (small)2613%Other(new formula)63%Total200100%<br />Note – Total 200 Number of farmers interviewed.<br />Conclusion:<br /> On the basis of above data, it is concluded that farmers demand from the new products are its durability & price which must be convenient.<br /> Observation No. 6<br />Important Factor While Purchasing Product<br />Imp. FactorFarmerPercentagePrice5025%Schemes105%Quality13266%Promotion Activity042%Other(Availability)042%Total200100%<br />Note – Total 200 Number of farmers interviewed.<br />Conclusion:<br /> On the basis of above data, it is concluded that, product Quality plays an important role while purchase of product.<br /> Observation No. 7<br />Awareness Of Silwet Gold<br />FarmerPercentageYes16080%No4020%Total 200100%<br />Note – Total 200 Number of farmers interviewed.<br />Conclusion:<br /> On the basis of above data, it is concluded that, about 80% farmers are aware about “Silwet Gold” Sticker in this area.<br />Observation No. 8<br />Source of Information About New Product<br />Source of InformationFarmerPercentageAdvertisement2010%Demo, Promotional Activities3015%Retailers12060%Company employees3015%Total200100%<br />Note – Total 200 Number of farmers interviewed.<br />Conclusion:<br /> On the basis of above data, it is concluded that, majority of farmer get information about new farmer from Retailers.<br />Chapter-7<br />Analysis of Retailer<br />Observation No. 9<br />Number of Retailers selected for study<br />Name of TalukaNumber of Dealers interviewedJunner15Total15<br />Note – Total 15 Number of Retailers interviewed in Junner<br />Observation No. 10<br />Demo. Require in field<br />RetailerPercentageRequire1280%Not require0320%Total15100%<br />Note – Total 15 Number of Retailers interviewed.<br />Conclusion:<br /> From the above data, it is clear that about 80% retailers says field demo are required.<br />Observation No. 11<br />Problem faced while selling Chemtura Product by Retailers<br />ProblemsRetailersPercentagePrice1387%Packing size213%Total15100%<br />Note – Total 10 Number of Retailers interviewed.<br />Conclusion:<br /> On the basis of above data, it is concluded that majority of retailers facing problem while selling silwet gold due to price factor.<br /> Observation No. 12<br />Best type of Information Media<br />MediaRetailersPercentageTV, Radio0214%Personal contact1280%Literature0106%Total15100%<br />Note – Total 15 Number of Retailers interviewed.<br />Conclusion:<br /> On the basis of above data it is concluded that, majority of retailers got information about product through personal contact.<br /> Observation No. 13<br />Retailer Recommends Silwet Gold to Farmer<br />RetailersPercentageRecommends0960%Don’t recommends0640%Total15100%<br />Note – Total 15 Number of Retailers interviewed.<br />Conclusion:<br /> From the above data it is concluded that, about 60% retailers recommends silwet gold to farmers.<br /> Observation No. 14<br />Base of Recommendation<br />Base of RecommendationRetailersPercentage Brand 320%Profit960%Quality/Result320%Total15100%<br />Note – Total 15 Number of Retailers interviewed.<br />Conclusion:<br /> On the basis of above data it is concluded that, about 60% retailers recommends sticker on the basis of their profit.<br /> Observation No. 15<br />Company type preferred By Retailer<br />TypeRetailersPercentageBranded960%Local640%Total15100%<br />Note – Total 15 Number of Retailers interviewed.<br />|Conclusion:<br /> From the above data, it is concluded that, majority of retailers prefer Branded companies products.<br /> Observation No. 16<br />Service preferred while product delivery By Retailers<br />Service Pref.RetailersPercentageDirect from company0320% Dealer1280%Total15100%<br />Note – Total 15 Number of Retailers interviewed.<br /> <br />Conclusion:<br /> From the above data, it is concluded that, about 80% retailers prefer service from dealer while delivery.<br /> <br /> Suggestions <br />Cost efficient pricing.<br />Small packaging.<br />Timely delivery.<br />Should focus on Seasonal Advertising.<br />Trained and Qualified field force.<br />Needs for extension – Farmer’s education on changing pest complex, pest management, weed control.<br />Require strong and enough sales force.<br />Must take campaigns in times of sudden pest outbreak.<br />Should create a long term relationship with Farmer’s.<br /> LIMITATIONS<br />
    • In shorter duration of time it was not possible to visit all the dealers, distributors & farmers
    • 2. Sample size given was 25 dealers including distributors & 100 farmers.
    • 3. Only the few dealers/ distributors were willing to give information
    • 4. Some have refused to give financial information & do not want to share business secrets.
    • 5. Some dealers were not willing to give appointment due to there busy schedule.
    • 6. Literature was not available easily.
    • 7. Some dealers did not answer to the questionnaire.
    • 8. Some dealers had given wrong/ false information
    <br />CONCLUSION<br />Dealer and user were focus to sell Silwet Gold. The reason Given are –<br />Awareness about the brand<br />Durable effect of the products on the crop<br />Does not leave any residue<br />It is totally safe to crop<br />Mostly Mechanical method is found for spraying pesticide and insecticide.<br />Source of information for plant protection were Retailers, company employees and consultant person.<br />User expect that new product should have the following attributes<br />Effect should be Durable<br />Low Price<br />Product should be available in smaller packs<br />Availability<br />Distributor, Retailer, Company employee come out is the important person in selling the products.<br />Dealer means that demand for stickers are increasing.<br />Annexure.<br />www.chemtura.com<br />www.agrowon.com<br />www.google.com<br />Book- Survey of Indian Agriculture, The Hindu Publication 2007<br />Handbook of Agriculture, ICAR (New Delhi)<br />