2. Contents
Chemical Industry-Indian Scenario..................................................................................................... 3
About GACL....................................................................................................................................... 3
INSPECTION OF MATERIAL................................................................................................................. 4
TRANSPORTATION OF MATERIAL............................................................................................ 5
4p’s of GACL.................................................................................................................................... 11
Demand Analysis.......................................................................................................................... 11
Market Segmentation...................................................................................................................... 12
SWOT ANALYSIS .............................................................................................................................. 13
References ...................................................................................................................................... 14
3. Chemical Industry-Indian Scenario
Global chemical production growth slowed down from 4.4% p.a. in 1999-2004 to 3.6% p.a. in
2004-2009, with global chemical sales in FY10 valued at $3.4 trillion. The industry is
increasingly moving eastwards in line with the shift of its key consumer industries (e.g.
automotive, electronics, etc.) to leverage greater manufacturing competitiveness of emerging
Asian economies and to serve the increasing local demand. This has led to share of Asia in
the global chemical industry increasing from 31% in 1999 to 45% in 2009.
With Asia’s growing contribution to the global chemical industry, India emerges as one of the
focus destinations for chemical companies worldwide. With the current size of approximately
$108 billion1
, the Indian chemical industry accounts for ~3% of the global chemical industry.
Two distinct scenarios for the future emerge, based on how effectively the industry leverages
its strengths and manages challenges. In such an optimistic scenario, high end–use demand
based on increasing per capita consumption, improved export competitiveness and resultant
growth impact for each sub-sector of the chemical industry could lead to an overall growth
rate of over 15% p.a. and a size of $290 billion by 2017 (~6% of global industry).
The draft manufacturing policy recently approved by the Cabinet targets increasing the share
of manufacturing in GDP to at least 25% by 2025 (from current 16%). It aims to create 100
million additional jobs through creation of National Investment and Manufacturing Zones
(NIMZs) as mega investment regions, equipped with world class infrastructure. These zones
will enjoy fast track clearances from the environment ministry and state pollution boards,
special policy regimes, tax concessions and more favourable labour laws. Investments in
manufacturing in the chemical sector are absolutely essential to ensure growth of the Indian
chemical industry.
The various segments of the chemical industry (such as organic chemicals, specialty
chemicals, chlor-alkali, pesticides, colorants and alcohol based chemicals) have their own
unique set of challenges. The industry can grow only if these individual segments overcome
their challenges and move swiftly along the growth path.
With Asia’s growing contribution to the global chemical industry, India emerges as one of the
focus destinations for chemical companies worldwide. With the current size of $108 billion1,
the Indian chemical industry accounts for approximately 7% of Indian GDP. The chemicals
sector accounts for about 14% in overall index of industrial production (IlP). Share of industry
in national exports is around 11%. In terms of volume, India is the third-largest producer of
chemicals in Asia, after China and Japan. Despite its large size and significant GDP
contribution, India chemicals industry represents only around 3% of global chemicals.
About GACL
Gujarat Alkalies and Chemicals Limited (GACL) was incorporated on 29th March, 1973 in
the State of Gujarat by Gujarat Industrial Investment Corporation Limited (GIIC), a wholly
owned company of Govt. of Gujarat, as a Core Promoter.
In 1984, the second stage expansion to increase the capacity of Caustic Soda Plant to
103,425 MTPA was undertaken. Simultaneously, the Company undertook the diversification
1
Chemical industry size as per CMIE 2010
4. project for manufacture of 10,560 MTPA of Chloromethanes using Chlorine, a co-product of
the Company and in 1991, the capacity of Chloromethanes production was doubled.
Since production of Caustic Soda is highly power intensive, in order to reduce power cost
and to eliminate mercury pollution, the Company during the year 1989 converted one of its
Cell Houses producing Caustic Soda from Mercury Cell Technology to environment friendly
Membrane Cell Technology, thereby eliminating the use of mercury. The Capacity of Caustic
Soda was also increased to 132000 MTA.
As part of this Membrane Cell Conversion Project, a new facility for manufacture of 16500
MTA of Potassium Hydroxide Lye based on Membrane Cell was also set up. The Company
has further set up facility for converting part of this Caustic Potash Lye into Potassium
Carbonate with a capacity of 13200 MTA.
In 1995, as a part of diversification programme and to meet the growing demand of its
products in the State of Gujarat and nearby areas, the Company had set up a plant for
manufacture of Technical Grade Phosphoric Acid with capacity of 26400 MTA (85%
Phosphoric Acid) at a new location at Dahej, District Bharuch. The Company also set up
Membrane Cell based grass root Caustic-Chlorine Unit with a capacity of 100000 MTA at
Dahej. Alongwith this, a captive 90 MW co-generation Power Plant was set up so as to
ensure uninterrupted and low cost power for its captive operations.
INSPECTION OF MATERIAL
1. If inspection of material is required at vendor’s shop prior to despatch, the same shall
be mentioned in the indent & purchase order. The Purchase dept. shall coordinate
with user department about the requirement of inspection of material at vendor’s
shop prior to despatch. If inspection at vendor’s shop is required, User Dept. shall
depute the inspectors for inspection of the material with intimation to purchase
department. Purchase Dept. will coordinate further with vendors for the inspection.
2. In other cases inspection of material shall be carried out after receipt of material at
site. As and when material is received Store Depts. shall intimate concerned
Indenter/User Depts. for inspection of the material. Indenter/User Depts. shall carry
out preliminary inspection within three days of receipt of material at site. If any test
certificates, Analysis report or any other documents are required for acceptance for
material, User Depts. shall inform Purchase Depts. to arrange the same. Purchase
Depts. will take up the matter with vendor for submission of test certificates/Analysis
Report or any other documents as per the requirement of the inspectors. After
completion of the inspection in all respect the material will be accepted or rejected by
user dept. In case the material is required to be tested the same shall be issued to
User Department for testing in the laboratory. Only after successful test material will
be accepted by the User Department. Overall procedure of inspection shall be
completed normally in five days but in exceptional case this period can be extended
depending upon the material and inspection/testing requirements.
3. In some of the cases the material can be made acceptable after some
modifications/repair. In such cases after Inspection, material can be taken for
modifications/repair. After completing modifications/repair, if material is found to be
acceptable, material will be accepted. If the reasons for requirement of
5. modifications/repair are attributed to the supplier, the cost incurred by the company
towards Repair/modifications will be recovered from the supplier.
TRANSPORTATION OF MATERIAL
1. The stores section of Materials Management Department will be responsible for
clearance of material from Railways, Transporters and Airlines and their
transportation to the GACL plant/sites. Upon receipt of the dispatch documents/LR,
the stores will hand them over to the handling contractors for arranging transportation
of material.
2. On receipt of material at plant/site, the stores shall arrange for inspection from
indenter/user. It should be ensured that the materials received are inspected in 3
working days of their arrival at the plant/site and the goods accepted are taken on
charge. The indenter shall ensure inspection within this period. Necessary follow up
shall also be done by stores for clearance of Goods Receipt Vouchers (GRV) with
Indenter/user department. Purchase Department shall ensure that all necessary
documents needed for inspection shall be made available from Supplier to user
department.
3. If the packages received at a railway station or road carriers go down, are broken,
open delivery should be obtained. The stores shall ensure that suitable endorsement
shall be obtained on the carriers’ receipt of the damages/shortages of material at the
time of delivery.
6. Product Line
(GACL)
Other Manufacturers
Caustic Soda
Group
Lords Chloro Alkali
Ltd.
(LCAL) was
incorporated in
1979, for producing
and exporting a wide
range of chemicals,
which commanded
the market in North
India.
LCAL has built
sophisticated
manufacturing
facilities at Alwar
(Rajasthan), having
location advantage
in chloro-alkali deficit
region. A well
integrated Caustic-
Soda Plant is
presently upgraded
to 220 t.p.d. Laden,
with a production
potential to tap by-
products, both
functional and non-
functional.
The company is
strategically located
in the heart of North
India where the
demand is always
more than the
supply. We supply
our products to most
of the paper, soap,
dyes, chemicals and
plastic industries
based at the western
part of UP, Haryana,
Punjab & Delhi.
Besides this, there is
also in-house
consumption of
Chlorine.
The Sanmar Group
The Sanmar Group
has come a long way
since its first
international foray
back in the 1970s.
Since then, the Group
has set the
benchmark for global
partnerships in a
range of industry
segments. These are
partnerships based on
trust, transparency
and respect for
intellectual property
rights.
Characterized by
strong and
conservative financial
practices, the Group
has a track record of
steady growth and
consistent excellence
in all of its
businesses.
The Group has 100%
or majority or
significant holdings in
all its businesses.
These businesses are
professionally
managed and
grouped in industry
segments as follows:
Chemicals (including
Specialty Chemicals)
Engineering
Technologies
(Products and Steel
Castings)
Shipping
Aditya Birla
Chemicals (India)
Ltd, is a unit of
Aditya Birla Group
and one of the
leading Chlor
Alkali Company in
India. The plant
has been
commissioned in
1984 and located
at Garhwa Road,
Distt. PALAMAU,
State
JHARKHAND,
India. Company’s
detail product
range & Installed
Capacity:
Caustic Soda lye -
105,000 TPA
Liquid Chlorine -
75,250 TPA
Hydrochloric Acid -
43,750 TPA
Sodium Hypo
Chlorite - 18,000
TPA
Aluminum
Chloride - 14,965
TPA
Hydrogen Bottling-
600,000 Nm3
Stable Bleaching
Powder - 17,520
TPA
Caustic Potash
Group
Sree Rayalaseema
Alkalies And Allied
Chemicals Ltd, a
professionally
TASC Chemical
Industries Pvt. Ltd.,
(TCIPL) was
Incorporated in the
The BTTCO
Group, a budding
conglomerate with
18 years of core
7. organized company
dealing in chemicals,
was set up in the
year 1985. Under
the guidance and
able headship of our
esteemed CEO, Mr.
T.G. Venkatesh, our
company has scaled
great heights and
reached a platform
where it is highly
revered by
international clients.
Mr. T.G. Venkatesh
is a graduate in
B.Com and has an
experience of 35
years in this
industry. The
location of the
company is at
Kurnool (A.P) having
the marketing offices
at Bangalore,
Hyderabad,Chennai,
Mumbai and New
Delhi.
year 1986, by a team
of qualified and
experienced
entrepreneurs, having
a wide exposure to
the Chemical
Industry’s demands
and potential.
experience in
Merchant Trade of
Organic /
Inorganic &
Industrial
Chemicals besides
Guar Gum,
Minerals and
various bulk
commodities has
established a good
rapport with clients
worldwide as well
as with niche
vendors in
domestic market.
The company is a
leading source for
procurement of
Chemicals in
India. Our
uncompromising
attitude has grown
many folds to
cater to various
industries viz.
Mining (Ore
Refining/Gold
Mining &
Refineries), Oil
Well
Drilling/Refineries,
Water Treatment,
Soap & Detergent,
Electroplating,
Metal Pickling /
Scale Removal,
Textile, Paper,
Paint, Agriculture,
Automotive, Food,
Animal & Cattle
Feed,
Pharmaceutical,
Cosmetics etc. in
the overseas
market mainly in
USA, Europe,
Africa, Middle
East, Far East.
Chloromethane
Group
SRF started
manufacturing
fluorochemicals
(CFCs and HCFCs)
Gujarat
Fluorochemicals
Limited (GFL) is a
part of the $2 billion
Lords Chloro
Alkali Ltd
8. at Bhiwadi in
Rajasthan, India in
technical
collaboration with
AlliedSignal (now
Honeywell) of USA
in 1989. With a
sharp focus on
quality and
competitiveness,
SRF has over the
years backward
integrated into
manufacture of
critical intermediates
required for
refrigerants. These
include hydrofluoric
acid and chloroform.
INOX Group of
Companies. INOX
Group is a family
owned, professionally
managed business
group, with market
leadership in diverse
businesses including
Industrial Gases,
Refrigerants,
Chemicals, Cryogenic
Engineering,
Renewable Energy
and Entertainment.
The INOX Group
employs more than
8000 people at more
than 100 business
units across the
country, and has a
distribution network
that is spread across
more than 50
countries around the
globe. Each INOX
Group company is
characterized by three
distinct characteristics
- early identification of
a winning business
idea, building it to a
size of market
leadership in that
segment, and
attaining profit
leadership position
through cutting-edge
efficiency in
operations.
Hydrogen
Peroxide
Group
National Peroxide
Limited
(Wadia Group)
Asian Peroxides
Limited is the largest
manufacturer/exporter
of Hydrogen Peroxide
in India. Our
Hydrogen Peroxide
manufacturing plant
incorporates the latest
process technology
and we are an ISO
9001 and ISO 14001
accredited Company.
Our facility includes
captive carbuoy
manufacturing plant
9. that produces HDPE
Carbuoys to IMDG
standards for safe
storage and transport
of Hydrogen Peroxide.
Phosphoric
Acid Group
Hindalco is one of
the leading sulphuric
acid manufacturers
in India. The
company has three
sulphuric acid plants
totalling a capacity of
16,70,000 tpa. The
plants incorporate
the DCDA process
and are designed by
Monsanto
Envirochem (USA).
Punjab Chemical
and Crop Production
Ltd
From manufacturing
basic chemicals such
as Oxalic Acid,
PCCPL is a fast
growing
Agrochemicals &
Formulations
company with
synergistic Pharma,
Industrial Chemicals &
International Trading
divisions.
Solaris
ChemTech
Industries
Limited (SCIL), a
part of the $ 4
billion Avantha
Group, has been
in existence since
the early 1970s.
Solaris
ChemTech, as our
name suggests,
embodies the
virtues that are
associated with
the sun - growth,
energy, and
passion. We
combine the
power of solar
energy with cutting
edge technology
to provide
products and
solutions to our
partners with an
emphasis on our
commitment to the
environment.
Sodium
Cyanide Group
Jaggo Overseas is
a renowned and
highly reputed
importer and
exporter of a wide
range of chemicals
and machineries.
The company is
engaged in importing
and exporting of
Optimum Quality
Electroplating
Chemicals, Polishing
Compound,
Abrasive, Color
Sorting, Rice
Machine, CCD and
Photo SENSOR.
With its constant
Shree Ram Alkaline
Ltd
10. delivery and vast
experience, jaggo
Overseas has
created a niche for
itself in the field of
importing and
exporting of diverse
chemicals and
machineries.
Calcium
Chloride Group
Bhavani Chemicals
Established in the
year 1989, under the
leadership of
Mr.Bhuralal.T.Kalal
With his great
determination and
hard work Bhavani
Chemicals have
become India’s
leading
Manufacturer and
Supplier. Owing to
his vast experience
in the field of Dye-
Intermediates
Chemicals Industry,
we have surpassed
all our competitors in
the market. These
chemicals are
manufactured using
latest technology, as
per the set quality
standards.
Jay Process has
established a strong
foothold in the market
of Chemicals. region
of Ankleshwar,
Gujarat, since its
commencement in the
year of 2005. Apart
from this, the
company values its
relationship with the
clients and ensures to
provide best-in-class
products along with
customer servicing.
To delight customers,
it executes business
operations in an
ethical manner and
strives to make timely
delivery.
11. 4p’s of GACL
Product
• Wide range of products
• Caters various industries eg. Aviation, Sugar Refining, Petroleum, Paper, Textile
• Largest Manufacturer of Caustic Soda in India
Price
• Market Driven ( prices decided upon Spot market & Contracts)
• Payment method is flexible depending upon the customers, for new customer
advanced payment (till the 7th
day of delivery) and Credit system (30 days for
customer & 60-75 days for dealers) for regular customers & contract buyers
• Discounts are offered to loyal customers, cash discounts for advance payments &
bulk buying discounts
Place
• Dahej : Sudden parth of India (Bharuch, Surat, Mumbai, Pune etc)
• Baroda : North India (Ahmedabad, Saurashtra, Rajasthan, Delhi etc)
Promotions
• Dedicated sales force to maintain Relationship with customers & dealers
• Promotions in various conferences eg. Enerasia 2014 etc.
• Articles in business magazines
Demand Analysis
1. Primary Data Analysis
(Information from customers and dealers)
2. Secondary Data
(Industry Analysis)
3. Alkali Manufacturers Association of India
(Market analysis & product demand supply analysis)
12. Market Segmentation
Macro level basis
Product Application
Pulp& paper
Textiles
Soap & Detergents
Petroleum Products
Aluminium Metal
Chemical Process
Bleach Manufacturing
Pharmaceuticals
Aviation
Micro level basis
Key criteria
Purchasing strategies- Direct buyers, Contract Purchase & Dealers.
GACL does the business by applying above mentioned purchasing strategies for
above mentioned industries.
13. SWOT ANALYSIS
Strengths:
1. Single largest caustic soda procedure in the country coin a capacity of 27000 TPA
having industry of 13.75%.
2. Leader in the chlor-alkali industry
3. Integrated downstream plants
4. In house research and development
5. Proximity to raw materials source and market
6. Excellent industrial relations
7. Low cost power from GIPCL Baroda
8. Dedicated man power
9. The co. has been awarded ISO 9001:2000 certificated from 20th
2003
Weakness:
1. Highly power intensive products
2. Company’s products are in commodity group and there of the prices are purely
market driven
3. The supply of natural gas for the power varies depending upon availability
Opportunities:
1. Foreign market the demand for the co.’s products in foreign market is high therefore
GACL has opportunity to gain share market by exporting its products to foreign
countries
2. Excess capacity in power plant will help ion setting downstream projects for
increasing the capacity of caustic soda production
3. Raw material for other industries
4. Anitdumping duty
Threats:
1. The Chlor-alkali industry is cyclical in nature
2. The industry has forced with over capacity in the country
3. Dependence on the performance of the consuming sectors
4. Threats of impacts of slow Indian economics growth
5. Highly competitive market for the products of the company
