Summer Internship Project Report on

EUROPEAN ACETIC ANHYDRIDE MARKET By

Chetanya Rajput
A0101911181

MBA Class of 2013

Under the Supervision of Mrs. Mamta Mohan Assistant Professor Department of Marketing
In Partial Fulfillment of the Requirements for the Degree of Master of Business Administration at

AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA 2012

DECLARATION

Title of Project Report: European Acetic Anhydride Market

I declare

(a) That the work presented for assessment in this Summer Internship Report is my own, that it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation and style set out in the relevant documentation.

Date :

Chetanya Rajput A0101911181 MBA Class of 2013

ii

CERTIFICATE

T h i s i s t o hereby certify that Chetanya Rajput student of Masters of Business Administration at Amity Business School; Amity University Uttar Pradesh has completed the Project Report on European Acetic Anhydride Market under my guidance.

Mrs. Mamta Mohan Assistant Professor Department of Marketing

iii

ACKNOWLEDGEMENT

First and foremost, I would like to thank my faculty guide, Mrs. Mamta Mohan, and my industrial guide, Mr. Abhishek Sharma (Manager - Acetyl), for allowing me to undergo internship under their guidance and supervision. It gave me an opportunity to participate and learn a deal about the various aspect of marketing pharmaceutical product.

I would also like to show my sincere appreciation to Mr. Abhishek Sharma (Manager - Acetyl), who inspired me greatly to work on this project. His willingness to motivate me contributed tremendously to the project. I would also like to thank him for guiding me with some examples that related to the topic of the project, for suggesting alternative solutions & sharing their valuable experience & knowledge with me, and also for facilitating me in gaining practical knowledge.

This project has been made possible through the direct and indirect co-operation of various staff members of Jubilant Life Sciences Ltd. And without whose co-operation & help the completion of this internship was not possible.

Besides, I would like to thank the authority of Jubilant Life Sciences Ltd for providing me with a good environment and facilities to complete this project.

Finally, an honorable mention goes to my family and friends for their understandings and supports on me in completing this project. Without helps of the particular that mentioned above, we would face many difficulties while doing this project.

iv

TABLE OF CONTENTS DECLARATION...............ii CERTIFICATE.............iii ACKNOWLEDGEMENT................iv LIST OF TABLES...............vii LIST OF FIGURES................viii ABSTRACT.....xii 1. INTRODUCTION......................................................................................................1 1.1 Purpose of the Study.1 1.2 Significance of the Study..........1 1.3 Theoretical Framework.............2 1.3.1 Indian Chemical Industry Overview.................2 1.3.1.1 Market Segmentation......3 1.3.2 Structure of the European chemicals industry.3 1.3.3 Introduction to Jubilant Life Sciences Ltd.......6 1.3.3.1 Jubilant Life Sciences Ltd.......7 1.3.3.2 Products &Services offered...........................................8 1.3.3.3 Competitors of Jubilant Life Sciences Ltd..8 1.3.3.4 Jubilant Life Sciences Ltd in the EU...9 1.4 Definitions...............................................................................................10 1.4.1 Acetic Anhydride......10 1.4.1.1 Product Information...10 1.4.1.2 Main Characteristics.......11 1.4.1.3 Usage......11 1.4.1.4 Packaging............12 1.4.2 Modified Starch......12 1.4.2.1 Usage...........13 1.4.3 Mystery Shopping..13 2. REVIEW OF THE LITERATURE..........................................................................14 3. RESEARCH METHODS AND PROCEDURES....................................................21 3.1 Purpose of the Study.........22 3.2 Research Design...22 3.3 Research Questions......22 3.4 Participants.......24 3.5 Data collection technique and procedure.....24 3.6 Instrument Used...........24 3.7 Tools Used.......24 3.8 Pilot Study.......25 3.9 Limitations...25 4. DATA ANALYSIS AND FINDINGS ................................26 4.1 Findings .......26 4.2 Regional Results for End Sector Use of Acetic Anhydride.........28 4.2.1 Eastern Europe Region.....28 4.2.1.1 Observations .....29
v

4.2.2 Northern Europe31 4.2.2.1 Observations...32 4.2.3 Southern Region....34 4.2.3.1 Observations...35 4.2.4 Western Europe.37 4.2.4.1 Observations...38 4.2.5 Europe (Continent) ...40 4.2.5.1 Observations...40 4.3 SWOT Profile of Jubilant Life Sciences Ltd.....43 4.3.1 The SWOT Matrix.....44 4.4 Segment Analysis...51 4.5 Porters Five Forces Model....54 4.6 Ansoff Matrix.55 4.7 Product Innovation Matrix.....56 4.8 Market Impact of Top 10 Growth Trends of Acetic Anhydride56 4.9 PESTEL Analysis.......57 4.9.1 Political Factors.....57 4.9.2 Economic Factors......57 4.9.2.1 European Market for Acetic Anhydride...57 4.9.2.2 Effect of European Sovereign Debt Crisis57 4.9.2.3 Effect of Competition...58 4.9.3 Social Factors....59 4.9.4 Technological Factors...60 4.9.5 Environmental Factors..60 4.9.6 Legal Factors.60 4.9.6.1 Objectives of REACH...60 4.9.6.2 Benefits of REACH...61 4.9.6.3 Disadvantages of REACH.....62 4.9.6.4 Substance Information Exchange Forum...............62 4.9.6.5 Jubilant Life Sciences Ltd & REACH...62 4.10 Observations in Modified Starch....64 4.10.2 Major Players....64 4.10.3 Potential Threats from Substitutes....64 4.11 Summary of Findings.............64 5. CONCLUSIONS AND RECOMMENDATIONS......66 5.1 Recommendations ......66 5.2 Limitations......67 5.3 Implications for Practice.....67 5.4 Implications for Future Research....67 REFERENCES...68 Web Resources.........68

vi

List of Tables Table No. Title Page No. Table 1.1 Chemical industry specialization of EU member states (Source - CEFIC) Table 1.2 Chemical and chemicals products manufacturing sector (excluding pharmaceuticals) by country (2008) ranked b y turnover size (Source - CEFIC) 5 5

Table 1.3

Jubilant Life Sciences Ltd Facilities

Table 1.4 Table 1.5 Table 4.1

Subsidiaries of Jubilant Life Sciences Ltd C h a r a c t e r i s t i c s o f A c e t i c A n h yd r i d e Database of Acetic A n h yd r i d e

8 11 26

Manufacturers Table 4.2 Table 4.2 D a t a b a s e o f A c e t i c A n h yd r i d e S u p p l i e r s D a t a b a s e o f A c e t i c A n h yd r i d e S u p p l i e r s 27 28

(continued) Table 4.3 Table 4.4 Europe industry data (Consolidated) Internal Factor Evaluation Matrix 43 50

Jubilant Life Sciences Ltd Table 4.5 Un-modified and modified starch market structure & opportunities Table 4.6 Dry starch usage in End sectors segments 64 64

vii

List of Figures Figure No. Figure 1.1 Figure 1.2 Figure Name Segmentation of Chemical Industry Organizational structure of Jubilant Bhartia Group Figure 1.3 Figure 1.4 Figure 2.1 C h e m i c a l S t r u c t u r e o f A c e t i c A n h yd r i d e . Various packaging o ptions. Possible scenarios 11 12 18 Page No. 3 6

Figure 2.2

Estimated effect of scenarios - Growth in 2002/2015

18

Figure 2.3 Figure 2.4

Chemical trade balance w.r.t scenarios I n t e g r a t i o n o f a c o m p a n y s s u p p l i e r s a n d customers.

18 20

Figure 4.1.1

Chemical Industry in Eastern European Region

29

Figure 4.1.2

Wood Industry in Eastern European Region

29

Figure 4.1.3

Food and Food Processing Industry in Eastern European Region

30

Figure 4.1.4 Figure 4.1.5

D ye I n d u s t r y i n E a s t e r n E u r o p e a n R e g i o n Pharmaceutical Industry in Eastern European Region

30 31

Figure 4.2.1

Chemical Industry in Northern European Region

viii

32

Figure 4.2.2

Wood Industry in Northern European Region

32

Figure 4.2.3

Food and Food Processing Industry in Northern European Region

33

Figure 4.2.4

D ye I n d u s t r y i n N o r t h e r n E u r o p e a n Region

33

Figure 4.2.5

Pharmaceutical Industry in Northern European Region

34

Figure 4.3.1

Chemical Industry in Southern European Region

35

Figure 4.3.2

Wood Industry in Southern European Region

35

Figure 4.3.3

Food and Food Processing Industry in Southern European Region

36

Figure 4.3.4

D ye I n d u s t r y i n S o u t h e r n E u r o p e a n Region

36

Figure 4.3.5

Pharmaceutical Industry in Southern European Region

37

Figure 4.4.1

Chemical Industry in Western European Region

38

Figure 4.4.2

Wood Industry in Western European Region

38

Figure 4.4.3

Food and Food Processing Industry in Western European Region

39

Figure 4.4.4

D ye I n d u s t r y i n W e s t e r n E u r o p e a n Region
ix

39

Figure 4.4.5

Pharmaceutical Industry in Western European Region

40

Figure 4.5.1 Figure 4.5.2 Figure 4.5.3

Chemical Industry in Europe Wood Industry in Europe Food and Food Processing Industry in Europe

40 41 41

Figure 4.5.4 Figure 4.5.5 Figure 4.6 Figure 4.7

D ye I n d u s t r y i n E u r o p e Pharmaceutical Industry in Europe The SWOT/TOWS Matrix A n a l ys i s o f W e b s i t e T r a f f i c i n comparison to competitors website

42 42 44 46

Figure 4.8 Figure 4.9

Google Market Finders Result Screenshot of Google Market Intelligence's Result

46 47

Figure 4.10 Figure 4.11

Impact of SWOT Factors Opportunity Strategy Evaluation (OSE) Grid

48 48

Figure 4.12

T h r e a t M i t i g a t i o n S t r a t e g y/ C h a l l e n g e Impact Assessment (CIA) Grid

49

Figure 4.13 Figure 4.14 Figure 4.15 Figure 4.16

P r o d u c t L i f e C yc l e A n a l ys i s S e g m e n t A n a l ys i s R e g i o n a l M a r k e t L i f e C yc l e A n a l ys i s Porters 5 Forces Model Acetic

51 52 53 54

A n h yd r i d e m a n u f a c t u r i n g i n d u s t r i e s
x

Figure 4.17 Figure 4.18 Figure 4.19

Ansoff Matrix Product Innovation Matrix Market Impact of Top 10 Growth Trends o f A c e t i c A n h yd r i d e

55 56 56

Figure 4.20.1 Figure 4.20.2 Figure 4.21 Figure 4.22

International

comparison

of

chemical

58

production growth (Source - CEFIC) Chemical Industry Profile Chemical 58

Sales by Country (Source - CEFIC) P E S T E L A n a l ys i s Flow Diagram of REACH 59 63

xi

Chetanya Rajput EUROPEAN ACETIC ANHYDRIDE MARKET Ab s t r a c t

This research paper studies various factors which affect European Acetic Anhydride Market and opportunities which can be capitalized by Jubilant Life Sciences Ltd. The European chemicals industry is one of the largest European industrial sectors and an important source of direct and indirect employment in many regions of the European Union (EU). With a total production value of 449 billion in 2010, the chemical industry's contribution to the EU gross domestic product amounted to 1.1% representing about 7% of the total for the manufacturing sector. The outputs of the EU chemicals industry are typically classified in 3 types of industries: basic, specialties and Consumer Chemicals. There are many factors which affect the chemical industry across the Europe that has been studied in this report. To analyze them in-depth, various analyses like Porters 5 Forces Model, Life Cycle Analysis, PESTEL Analysis etc. As a value addition to the organization (Jubilant Life Sciences Ltd) which supported my research, various analyses like SWOT Analysis, Product Innovation Matrix etc. to find opportunities for them were conducted. Their website was also analyzed and feasibility of e-commerce was studied. This project provides an insight into basic chemical industry which emphasizes on Acetic Anhydride, chemicals which finds usage in varied sectors. It explores various chemical manufacturers and distributers which are involved in producing or trading Acetic Anhydride. It studies each and every countrys industry where Jubilant Life Sciences Ltd can target for end usage. To achieve this objective, primary research telephonic survey was employed along with extensive secondary research. The paper suggests use of e-commerce after analysis of competitors website and several critical changes required in Jubilant life sciences Ltd. website. The paper also suggests preferential areas of Europe and segments of industries suitable for target. It also studies market of modified starch as well in European markets based on end usage.

xii

CHAPTER 1: INTRODUCTION

1.1 Purpose of the Study The main objectives and the purpose of the research paper is stated in this chapter. The main objectives are as mentioned below: To study the complete list of producers/manufacturers of Acetic Anhydride in Europe with their capabilities and complete profile. To study breakup of consumption of Acetic Anhydride in term of end sector usage with special emphasis on modified starch. To analyze and prepare a SWOT profile of Jubilant Life Sciences Ltd. To analyse feasibility of e-commerce in chemical industry.

1.2 Significance of the Study Europe as a continent comprises of 50 countries with largest economy and is the richest region as measured by assets under management with over $32.7 trillion compared to North America's $27.1 trillion in 2008. The chemicals industry is one of the largest European industrial sectors and an important source of direct and indirect employment in many regions of the European Union (EU). In 2009, the EU chemical industry comprised some 29,000 enterprises that employed around 1.2 million employees representing 4% of the total employment in the EU manufacturing sector. 96% of the companies in the sector are SMEs 61% with less than 9 employees and account for 28% of sales and 35% of employment of the sector. With a total production value of 449 billion in 2010, the chemical industry's contribution to the EU gross domestic product amounted to 1.1% representing about 7% of the total for the manufacturing sector.

According to CEFIC, in the 10 year period from 1999 to 2009 the chemical industry production experienced an average growth rate of 0.4%, slightly higher than the 0.3% average growth rate for total EU manufacturing. The outputs of the EU chemicals industry are typically classified in 3 types of industries: basic, specialties and Consumer Chemicals. There are many factors which affect the chemical industry across the Europe and some of them are as follows: Political factors Competition Legal factors Operational Factors Economic Factors So likewise there are many factors which affect the European chemical market. It analyzes the effect of ongoing European Sovereign Debt crisis. This project provides an insight into basic chemical industry which emphasizes on Acetic Anhydride, chemicals which finds usage in varied sectors. It aims to study about European chemical market and look for opportunities for Jubilant Life Sciences Ltd. It explores various chemical manufacturers and distributers which are involved in producing or trading Acetic Anhydride. It studies each and every countrys industry where Jubilant Life Sciences Ltd can target for end usage. It studies feasibility of ecommerce in chemical industry and website as a tool to get competitive advantage.

1.3 Theoretical Framework 1.3.1 Indian Chemical Industry Overview The Indian chemicals industry is twelfth largest in the world and third largest in Asia in terms of volumes. Chemicals industry contributes nearly 3 percent of Indias GDP (USD 42 billion of 1.25 trillion). The Indian chemicals industry has evolved from being a basic producer of chemicals to an innovative industry. Chemical industry is one of the fastest growing one in the India. It is highly fragmented and dispersed multi product and multi-faceted. Chemicals are sold either directly to a business consumer or through distribution channels. Western India accounts for

majority of production. Indian chemical industry has grown from USD 28 billion in FY2003 to USD 42 billion in FY2009. The CAGR for the sector was about 7.5 percent for the period FY2003-FY2008 before global recession, owing to sub-prime crisis hit US and its aftermath on rest of the World, brought down the pace. Indian chemical industry witnessed a modest growth of 5 percent in FY2008-09, thanks to stimulus package announced by Government of India. If we go by IIP data for the period Apr09-Jan10, the Indian chemical industry has bounced back strongly, growing at about 10.4 percent during FY2009-10. 1.3.1.1 Market Segmentation The chemical industry primarily comprises of three segments namely basic chemicals, specialty chemicals and knowledge chemicals. Basic chemicals with nearly 57 percent share is the largest segment followed by specialty chemicals at 25 percent, and knowledge chemicals at 18 percent (including USD 7.5 billion pharmaceuticals and nearly USD 1 billion agrochemicals) . This break-up has remained nearly same for past few years.

BASIC CHEMICALS Inorganic Chemicals Petrochemicals Fertilizers Other Industrial Chemicals

SPECIALITY CHEMICALS Adhesives & Sealants Industrial Gases Catalysts Plastic Additives

KNOWLEGE CHEMICALS Agrochemicals Pharmaceuticals Other Biochemicals

Figure 1.1 - Segmentation of Chemical Industry 1.3.2 Structure of the European chemicals industry The chemicals industry is one of the largest European industrial sectors and an important source of direct and indirect employment in many regions of the European Union (EU). In 2009, the EU chemical industry comprised some 29,000 enterprises that employed around 1.2 million employees representing 4% of the total employment in the EU manufacturing sector. 96% of the companies in the sector are SMEs 61%

with less than 9 employees and account for 28% of sales and 35% of employment of the sector. With a total production value of 449 billion in 2010, the chemical industry's contribution to the EU gross domestic product amounted to 1.1% representing about 7% of the total for the manufacturing sector. This is a substantial reduction from the 684 billion production value in 2007, primarily a result of the financial crisis. One of the key features of the chemicals sector is its important contribution to all branches of the economy. Around 30% of the combined output of the chemical and pharmaceutical industry is sold to end users while the rest is sold as intermediate inputs. Raw materials and feedstock are transformed into tailor-made solutions for customers in the chemicals industry but also most downstream industries in almost all manufacturing sectors, in construction services and in general services. Thus, the EU chemicals industry has a key position in the value chain. The outputs of the EU chemicals industry are typically classified in five wide ranges of products: Petrochemicals, Basic Inorganics, Polymers, Specialties and Consumer Chemicals. Among the EU countries, Germany is the largest chemicals producer in Europe, followed by France, Italy and the United Kingdom. European chemicals industry is doing better in innovation driven subsectors than in more cost-orientated basic chemicals subsectors where investment in larger facilities, access to cheap raw material and energy costs provide a comparative advantage to facilities in China, Russia or the Middle East. Acetic Anhydride is also one of the crucial chemical which is manufactured in European chemical industries due to its application in various industries like Chemical industries, Pharmaceuticals industries, Dye & paints industries, Automobile industries, Food and food processing industries and Construction industries.

Table 1.1 Chemical industry specialization of EU member states (Source - CEFIC)

Table 1.2 Chemical and chemicals products manufacturing sector (excluding pharmaceuticals) by country (2008) ranked by turnover size (Source - CEFIC)

1.3.3 Introduction to Jubilant Life Sciences Ltd Jubilant Bhartia Group, a $3Bn with 24000 employees globally, headed by Mr Shyam S Bhartia and Mr Hari S Bhartia, embarked on a journey to create leadership in its chosen areas of business over two decades ago. The Group has a strong presence in Pharmaceuticals, life sciences and healthcare sector through its flagship company Jubilant Life Sciences and has the fastest growing Dominos pizza chain in India through Jubilant FoodWorks.

JUBILANT LIFE SCIENCES LTD (Pharmaceutical, Life Sciences and Healthcare) JUBILANT FOODWORKS (Dominos and Dumkin Donuts)

JUBILANT MOTORWORKS (Sales & Service of Audi in Chennai & Bangalore)

JUBILANT INDUSTRIES (Agri Product, Polymer)

JUBILANT BHARTIA GROUP

JUBILANT ENERGY (Oil & Gases)

JUBILANT BHARTIA FOUNDATION (CSR Activities)

JUBILANT ENPRO (Services in oil exploration and aerospace)

Figure 1.2 Organizational structure of Jubilant Bhartia Group

1.3.3.1 Jubilant Life Sciences Ltd Jubilant Life Sciences Ltd is an integrated pharmaceutical and life sciences company which started in 1978 as Vam Organic Chemicals Ltd. It was also renamed as Jubilant Organosys Ltd. In order to reflect the focus of the company as a pure pharmaceuticals and life science player, the company changed its name from Jubilant Organosys Ltd to Jubilant Life Sciences Ltd w.e.f October 1, 2010. Also the process of the demerger of Agri and Performance polymers business and listing of the demerged entity separately as Jubilant Industries Ltd was completed February 14, 2011. The Company through its presence in India, USA, Canada, Europe and China constantly serves its customers in over 60 countries across the globe. It has Indias largest Custom Research & Manufacturing Services (CRAMS), overall 6th globally. It is leading in Drug Discovery & Development Solution as well. It is among top 10 in Acetic Anhydride and 1st in 10 API, Pyridines and its derivatives. It has seven vertically integrated manufacturing facilities in India and three abroad as enlisted in Table 1.3 Table 1.3 Jubilant Life Sciences Ltd Facilities

S No
1 2 3 4 5 6 7 8 9

Location
Maryland, USA Spokane USA Kirkland, Canada. Samlaya (Gujarat) Ambarnath (Mumbai) Udaipur (Rajasthan) Nanjangud (Karnataka) Roorkee (Uttarakhand) Gajroula (Uttar Pradesh)

Nira and Gajroula are strategically located near sugar belt of Maharashtra and Uttar Pradesh respectively as Jubilant Life Sciences Ltd uses Molasses (by product of Sugar Mill) for Acetyl Production. Jubilant Life Sciences Ltd has eight subsidiaries as depicted in Table 1.4 four national and four international, most of them have been strategically acquired. Table 1.4 - Subsidiaries of Jubilant Life Sciences Ltd

Subsidiaries of Jubilant Life Sciences Ltd. National Subsidiaries

Jubilant Biosys Jubilant Chemsys Jubilant Clinsys Jubilant Kalpataru Hospital

International Subsidiaries
Jubilant Cadista, USA Jubilant HollisterStier Laboratories, USA Jubilant DraxImage, Canada Jubilant Pharmaceuticals NV, Belgium

1.3.3.2 Products & Services offered

Life Science Products

Life Science Ingredients - It includes Active Pharmaceutical Ingredients (APIs), Advance Intermediates, Fine Chemicals, Nutrition Ingredients, Acetyls and Crop science chemicals.

Generics It includes Solid dosage forms, radiopharmaceuticals and allergenic extracts.

Life Science Services

CMO of sterile & non sterile products Drug Discovery & Development Services Healthcare

1.3.3.3 Competitors of Jubilant Life Sciences Ltd Jubilant Life Sciences Ltd has competition from diverse field due to its diverse portfolio. Thus the main competitors of Jubilant Life Sciences Ltd are: 1. Ranbaxy 2. Cipla 3. Lupin 4. Glaxo Smithkline 5. Aurbindo 6. Sun Pharma 7. Wockhardt 8. Divis Laboratories (in CRAMS sector) In Acetic Anhydride segment, the main competitors are 1. Celanese AG 2. Eastman Chemical Company 3. Alfa Aesar 4. BUFA Chemikalien GmbH & Co. KG 5. Merck KGaA 6. Lonza 7. BP 1.3.3.4 Jubilant Life Sciences Ltd in the EU Europe is the largest market for Jubilant Life Sciences Ltd outside of India contributing 33.3 per cent to its international sales in the FY 2005-06.The Company is exporting its range of advance intermediates and fine chemicals, APIs, acetyls and select performance polymers to Europe for more than a decade. Jubilant Organosys forayed into European market in FY 2005 with the acquisition of two pharmaceutical companies in Belgium. They acquired Pharmaceutical Services Inc. (PSI) NV, which offers regulatory affairs services to generic pharmaceutical companies, and PSI Supply NV, which deals in the development and supply of generic dosage forms to European markets. With these acquisitions, they aim to make stronghold on formulation. In 2011, Fitch Ratings affirmed Jubilant Life Sciences Limited's (JLL)

10

National Long-Term rating at 'Fitch A+ (ind)' which means that the outlook is Stable. The main reason was its strong domestic market position in custom research and manufacturing services (CRAMS) and its geographically diversified revenue streams (international sales: 69% of FY11 revenue). Its products use molasses and alcohol as raw materials, as against petroleum products, which insulate it to some extent from high crude oil prices.

1.4 Definitions 1.4.1 Acetic Anhydride Acetic anhydride was first synthesized in 1852 by French chemist Charles Frdric Gerhardt (1816-1856). It is chemically represented as C4H6O3 and commonly known as Ac2O. 1.4.1.1 Product Information Acetic Anhydride is produced by carbonylation of methyl acetate or by dehydration of acetic acid at 800EC. It is highly inflammable, very reactive with strong and pungent odor. In its liquid or vapor state, acetic anhydride can irritate body tissues, possibly leading to the death of such tissue. IUPAC name: Acetic Anhydride. Systematic Name - Ethonoic Anhydride Other names: Ethanoyl ethanoate, Acetic acid anhydride, Acetyl acetate, Acetyl oxide, Acetic oxide. Name of Acetic Anhydride in other European languages De : Eissigsureanhydrid Espaniol : Anhidrido acetico French : Anhydride acetique Italian: Anidride acetica

11

Custom codes for Acetic Anhydride HS6: 291524 CN8: 291524 00 1.4.1.2 Main Characteristics Table 1.5 Characteristics of Acetic Anhydride Appearance Density Boiling Point Melting Point Clear liquid 1.082g/cm3 (liquid) 139 C -73 C

Figure 1.3 Chemical Structure of Acetic Anhydride. 1.4.1.3 Usage 1. It is used as reagent in organic synthesis conversion of cellulose to cellulose acetate, which is component of photographic film. It is also used in the production of cigarette filters and textile fibers. Vinegar is precursor unit in this process. 2. It is used in making Aspirin. 3. It used in making Paracetemol (1 tonne of acetic anhydride makes 2.7 million paracetamol tablets). 4. It is used in making wood preservatives. 5. Processing of dyes and perfumes.

12

6. It is used in making modified starch. 7. It can convert morphine into heroin which is illegal. 1.4.1.4 Packaging There are many options for company following flexible packaging concept as shown in Figure 1.4, however Jubilant Life Sciences Ltd uses standard size

Figure 1.4 Various packaging options. 1.4.2 Modified Starch Modified starch is prepared by physically, enzymatically, or chemically treating and modifying native starch (carbohydrate consisting of a large number of glucose units joined by glycosidic bonds) found in potato, rice, wheat, corn(maize) and cassava thereby changing the properties of the starch. It also called starch

derivatives. Jubilant Life Sciences Ltd manufactures modified starch by treating with Acetic Anhydride, which is called Starch Acetate Esterified with Acetic Anhydride. It is prepared by treating starch with acetic acid anhydride to form white or nearly white powder, granules, or flakes It is modified to function properly under conditions frequently encountered during processing or storage, such as high heat, high shear, low pH, freeze/thaw and cooling.

13

This area is recently becoming active with margin improvement enhancing the profitability in view of multitude of applications and functions in many food and nonfood segments. Recent growth of global developing economies and the demands of processed, convenience foods of populations with rising income and the two income families. This has created very attractive opportunities for starch and carbohydrate ingredient that are essential as bulking agents and functional nutritional demands of food and industrial segments. 1.4.2.1 Usage 1. It is degraded with amylase enzyme to make a sweetener. 2. It is added to frozen products to prevent them from dripping when defrosted. 3. It is used to thicken instant desserts. 4. It is used as stabilizing agent in food and food processing industries. It finds its application in used in frozen foods, ice-cream (plus soy icecream), frozen cakes, dry mixes (cupcakes, muffins, cakes, and selfsaucing puddings), flavoured toppings and sauces, mayonnaises, snacks and muesli bars, tunas, and gravies. 1.4.3 Mystery Shopping It is type of primary data collection used in marketing research to get the information anonymously where a researcher pose as a shopper or employs people to shop and give details on their experience of purchasing, customer service etc. It can be used to monitor the quality of customer service. Reporting is done based on their experiences in a detailed and objective way. The Market Research Society (MRS) defines mystery shopping as: The use of individuals trained to experience and measure any customer service process, by acting as potential customers and in some way reporting back on their experiences in a detailed and objective way.

14

CHAPTER 2 REVIEW OF THE LITERATURE

Deloitte (2012) highlighted the robustness of the chemical industry in the Netherlands. This research report focuses on one of the strongest chemical clusters in the world, the interconnected Antwerp-Rotterdam-Rhine-Ruhr Area (ARRRA) which responsible for a huge array of products that supply the competitive European manufacturing industry for both domestic and export markets. It produces 2% of global chemical manufacturer. It focused on the current position of the industry, global market trends, future scenarios, and the industrys response. The paper recommended clear regulatory framework along with flexibility to use a wide range of feedstock. It suggested integration of large and small plants, suppliers, pipelines to innovate which will be the key to dominate. The main factor that came out here is significance of Netherlands Chemical Industry. Centre for Strategy & Evaluation Services (2012) explored various benefits, disadvantages, overall market acceptance, impact of REACH through a white paper titled Interim Evaluation: Functioning of the European chemical market after the introduction of REACH. It suggested various recommendations for successful implementation. It enlisted various costs that firm has to incur to comply with REACH which follows as 1. Human resources dedicated to the various REACH-related activities (concerns all firms); 2. Costs of pre-registration and registration of chemical substances (concerning primarily manufacturers and importers of chemicals); 3. Information exchange activities along the supply chain (applies to all firms in the supply chain); REACH will not hamper chemical industries if implemented in a right way as it will protect environment, encourage sustainable growth, innovation and regulate competition. The main factor that came out here is impact of REACH on European Chemical Industry.

15

CEFIC (2011) enlisted various fact and figures related European Chemical Market through its report titled The European chemical industry in a worldwide perspective. The European Chemical Industry Council statistical report has various tables, figures and stats that have been used in this report. CEFIC is Conseil Europen des Fdrations de l'Industrie Chimique commonly known as European Chemical Industry Council. Based in Brussels, it represents European chemical industry and is a committed partner to EU policymakers, facilitating dialogue with industry and sharing our broad-based expertise. Cefic interacts daily on behalf of its members with international and EU institutions, non-governmental organizations, the international media and other stakeholders. The three distinct groups of members - corporate members, national federation members and business members form one of the most active networks of the business community, complemented by partnerships with industry associations representing various sectors in the value chain. The main factor that came out here is various facts and figures about European Chemical Industry, which is used in this study. Patil (2010), suggested various opportunities for manufacturers of modified starch (made from acetic anhydride) through a white paper titled Global Modified Starch Products & Carbohydrates Functional Foods Derivatives & Markets A Strategic Review The paper provided an estimation of global production of Modified Starch grow to almost 72 million tons from 68 million tons. Current modified Agriculture production economics of China, rest of Asia, India and South America is improving at a rapid pace and starch from corn and tubers will compete with the US processors. China will be a formidable competitor to US and Europe. Demand for starch by food and non-food industries in Asia is likely to grow by 4 - 6 percent per year in low and middle income countries in this region. Over time, demand for starch by non-food industries will tend to grow faster than demand for starch by food industries. Value added modified starch derivatives remains very attractive area due to high margins and numerous food and industrial applications. Corn with amylase and other enzymes in the grain that can be activated to improve processing economics of the way we process carbohydrates or to create new carbohydrates with novel properties are moving forward. Modified starches are

16

utilized in hundreds or even thousands of food, industrial, biofuels, bioplastic applications. Unmodified starches have limited usage due to its inherent weakness of hydration, swelling and structural organization. To enhance viscosity, texture, stability among many desired functional properties desired for many foods and industrial applications, starch and their derivatives are modified by chemical, physical and biotechnology means. Starch industry has posted a good comeback after recession in 2009. This report provided current situation, products, markets and future of modified starches for foods and industrial sectors. It also provided our insights and strategic manufacturing and market positioning perspectives for the manufacturers of these products and potential future developments. The main factor that came out here is various facts, figures and future of Modified Starch. KPMG International (2009) examined the challenges faced by European chemical market with special emphasizes on its decline due to competition from Asiapacific and recommendations to salvage industry through a white paper titled The Future of the European Chemical Industry. Chemical industries employ over 1.2 million people and contributed in 2007 to a European Union (EU) trade surplus in chemicals of EUR35.4 billion. It presents various facts and Figures of how industry declined and lost to competitors in Asia Pacific. It analyzes various reasons for its downfall. Observing the current trend, it also predicts major chemical manufacturers globally, with only one European chemical manufacturer (BASF) in list of 10 companies (Reliance, India is expected as 3rd largest manufacturer), whereas as per sales value in 2008, 5/10 manufacturers are European. It provides various solutions like 1. Maintain technological superiority by closing down units which are not advanced in comparison to their counterpart in Asia Pacific, reserve intellectual property rights (IPR), increase R&D and embrace sustainable development. 2. Strengthen customer relationships

17

3. In order to survive competition, companies can develop joint venture relationships with Middle East companies to gain cheap feedstock and with China to develop local presence. 4. Evolve from commodities to specialty chemicals. The main factor that came out here is threat to European chemical industry and how to tackle them. Heinzelbecker (2005) emphasized on the effect of regulatory policy on chemical through a white paper titled Futuring in the European Chemical Industry. It focused on strength of the CEFIC concept is that it clearly addresses the challenges the chemical industry is facing, including the increasing regulatory burden. It even quantified the consequences if not enough is done by the authorities and the industry itself. While in the UK concerted action between government and industry is noticeable, in order to defend and improve the competitiveness of the chemical industry, this has still to be achieved at the European level. It appreciated the establishment of a Chemical Advisory Networking Group for Europe as right step this direction, with the UK concept as the benchmark. It visualizes four scenarios with two dimensions i.e. the market situation and activities from politics and industry. 1. Sunny: A revitalized EU chemical industry with increased innovation and customer orientation. 2. Cloudy: A focused EU chemical industry with strengths in high-end products and sustainability. 3. Rain: EU chemical industry without confidence in the attractiveness of the European market. 4. Storm: A shrinking EU chemical industry not able to beat imports.

18

Figure 2.1 - Possible scenarios

Figure 2.2 Estimated effect of scenarios- Growth in 2002/2015 If industry and politics do not act proactively, the chemical trade position will turn negative.

Figure 2.3 Chemical trade balance w.r.t scenarios The main factor that came out here is how political system can boost European Chemical Industry and was used in PESTEL Analysis.

19

Agarwal (2001) explored the potential of e-commerce in chemical industry through a white paper titled E-commerce: New opportunities for the chemical industry It enlisted two-pronged strategy adopted by the majority of chemical companies when they made their debut in the new economy by putting a page on the Internet to establish a Web presence. These companies soon realized the potential beyond a brochureware site and shifted their focus rapidly to e-commerce. The strategy were 1. Chemical companies have started their own initiatives, mainly in the B2B area; by using extranet- and Internet-based electronic data interchange (EDI) systems for their larger customers and suppliers. The major advantages are automated order processing and billing and better customer service. A few companies have also built enterprise resources planning (ERP) connections between themselves and their biggest customers and suppliers. 2. They joined a third-party online marketplace like chemnet, worldofchemicals to gain access to the new markets emerging in chemical sector. A third-party marketplace offers dynamic pricing, access to more suppliers and customers, and the ability to dispose of excess inventory and exchange information. Now, electronic exchanges are shifting their focus to address the supply chain inefficiencies among the business partners. It will be beneficial for suppliers as they can procure non production items like office and MRO (maintenance, repair, and operations) supplies because current ordering processes are cumbersome, and maverick buying is common. Intranet sites can be deployed list items, along with company-negotiated discounts, or use the vendors extranet sites customized for the purchasing companies employees. An employee needing to order a product can go to the company intranet, order the product, enter the department number (or any other form of identification), and receive the product. It will be beneficial for all types of customers. Depending on the sizes of their suppliers and customers, their technological maturities, and the industry environment, chemical companies can use extranets, EDI, the Web, e-marketplaces, or a

20

combination of them to transact business. It is a cost-effective and fast way to share information and data. EDI helps in automating and creating electronic documents that are sent over a private network platform. Many industrial gas companies use telemetry systems to monitor the liquid level of tanks at their customers sites. This information can be displayed in real time on the extranet site along with the usage pattern and a reminder to schedule the next delivery if the level goes below a predetermined limit. The biggest advantage of an extranet site is the single-point contact for all of a customers needs, which helps in forming an alliance between the customer and the company. MyAccount@Dow, an extranet site for Dow Chemicals customers, provides registered customers with secure online access to transactions such as account information, order status, repeat orders, and payment history, resulting in a one-to-one collaboration.

Figure 2.4 Integration of a companys suppliers and customers. The main factor that came out here is application of e-Commerce in Chemical industry.

21

CHAPTER 3: RESEARCH METHODS AND PROCEDURES

As a part of studying Acetic Anhydride market in Europe, it was crucial to study about Europe which will further help in mystery shopping by increasing knowledge. The data collected was recorded in several excel sheets developed using various sources. 1. European Country and Currency - It emphasize on Eurozone and those which have sought bail-out due to ongoing sovereign debt crisis. It helped in determining market conditions. 2. European Industry (End Sector Usage of Acetic Anhydride) It studies complete Europe industries where Acetic Anhydride finds its application namely i. Chemical industries ii. Wood and Wood Product industries iii. Food and Food processing industries iv. Dye industries v. Pharmaceutical industries It also mentions famous companies and industries. 3. Europe Industry - Region Wise It breaks up above excel file data into regional division Northern, Eastern, Southern and Western Europe to focus market research. 4. Europe Industries and Demographics It studies Europe regionally with all target industries along with demographics and good to know information. 5. Database of Acetic Anhydride Manufacturers and Suppliers It enlist Acetic Anhydride Manufacturers and Suppliers. It was found with help of search engine, various website and reference in research papers.

3.1 Purpose of the Study 1) To prepare the complete list of producers/manufacturers of Acetic Anhydride in Europe with their capabilities and complete profile and observe perceptional manufacturing capacity of respondents. 2) To study breakup of consumption of Acetic Anhydride in term of end sector usage with special emphasis on modified starch. 3) To analyze and prepare SWOT profile of Jubilant Life Sciences Ltd. 4) To study feasibility of e-commerce as a potential opportunity in chemical industry.

22

3.2 Research Design The project uses descriptive research. An intensive secondary research is conducted to gain insights in the chemical market. This helps in understanding the various factors in European market of Acetic Anhydride.

3.3 Research Questions A) E-Mail Request to Experts Dear Team I, Chetanya Rajput, intern from Amity Business School, under the guidance of Mr Abhishek Sharma is conducting a market research on "Starch Acetate", a kind of modified starch from view of consumption of Acetic Anhydride To give you an idea of information, I am looking at 1) Production quantities of starch acetate and consumption of Acetic Anhydride for the same. 2) Potential of Acetic Anhydride in this application for future. 3) Historic growth in consumption of Acetic Anhydride for starch acetate. 4) Major manufacturer of starch acetate and major suppliers of Acetic Anhydride to them. Please provide me helpful information. Thank you Regards Chetanya Rajput Intern Amity Business School

23

B) Telephonic Script (As given by Jubilant Life Sciences Ltd) Goodmorning (Depends), is this __Company Name_____? I am calling from Dubai, I would like to speak to someone from production or export department. Hello, I am Hasan Khan. I am a Supplier of chemicals in Dubai. I would like to procure Acetic Anhydride from your company. I am would like to know following details IF MANUFACTURERS What types of Acetic Anhydride do you provide? In what time, I will get my order? We will assume the price, as per Tecnon OrbiChem or do you charge different than that? What amount of Acetic Anhydride is available for merchant selling? IF DISTRIBUTOR OR SUPPLIER What types of Acetic Anhydride do you provide? From where do you procure Acetic Anhydride that you supply? In what time, I will get my order? We will assume the price, as per Tecnon OrbiChem or do you charge different than that? Please email the details at hasankhan.chem@gmail.com

Back-Up Data I am calling from Saral chem Mobile No. 9582534899 E-mail Id - hasankhan.chem@gmail.com

24

3.4 Participants 1) Manufacturers of Acetic Anhydride in Europe and foreign players. 2) Experts interviews.

3.5 Data collection technique and procedure A. Primary Data i. Collecting information on manufacturing capacity, delivery time and price of Acetic Anhydride as mystery shopper on telephone. ii. Discussion with the experts of chemical market.

B. Secondary data Already existing data is called secondary data. I collected them by following method: i. ii. iii. iv. Internet Published Reports Search Engine Official websites of manufacturers and suppliers.

3.6 Instruments Used Following research instruments were deployed to conduct research 1. Tele-calling Script. 2. E-mail request to experts.

3.7 Tools Used Following softwares has been used during collecting, analysis and compiling of data. 1. SPSS 2. Microsoft Excel 3. Skype 4. Google Market Finder 5. Google Market Intelligence 6. Compete comparative Web Traffic Analyzer

25

3.8 Pilot Study The pilot study was done in first call made to Celanase which cross questioned a lot and as a result, back-up data was created and study was done to know market prices and chemical trade.

3.9 Limitations 1. Inaccessibility to all published report due to high cost. 2. Inaccessibility to Tecnon Orbichem price list due to high cost. 3. Some respondents werent opening up. 4. Mostly respondents do not reply to e-mails or contact us option in their website. 5. Communication barrier. 6. Limited time and resources.

26

CHAPTER 4: DATA ANALYSIS AND FINDINGS

4.1 Findings The result of first objective as mystery shopper to find out manufacturing capacity based on perception (based on calling them and exploring their website) and actual data (based on web resources and findings) is as follows Table 4.1 Database of Acetic Anhydride Manufacturers
S No. Name of Organization Type Manufacturing Capacity (Year of data) 535 Kt/a (2002) Manufacturing Net Sales Capacity(Perception) Bulk, Big $6762Mn (45.57% contributed by Acetyl ) $7.2 billion (2011) 2.3 Bn Pound Data not available 2,393 million (2011) Data not available Data not available 2.692 billion $375,517 million (2011) 23434704* 815594* 4223419* Data not available Data not available Rs 22008.96 Mn (Mar 2011) 17.9 billion yen(Capital) SR 705,897,758 (Net Profit 2011)

Celanese AG

Public

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Eastman Chemical Co Alfa Aesar Panreac Merck KGaA BUFA Chemikalien GmbH & Co. KG Kraeber & Co Lonza BP Apollo Scientific Euram Chemicals Ltd Vicker Laborateries Ltd Finetech Industry Limited TCI Europe N.V

Public Public Private Public Private Private Public Public Private Private Private Private Private

1,631 million pounds (2012)

Big Big Average N/A Average Small Big

157 KT/a (Total 18536 KT/a) (2011)

Not key focus Small N/A Small Small Big Big Big

Jubilant Life Sciences Ltd Public NIPPON GOHSEI Europe GmbH Saudi International Petrochemical Company (Sipchem) Public Public 50,000t/y (50% to VAM Plant and rest for Merchant Selling)

Average

27

S No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Table 4.2 Database of Acetic Anhydride Suppliers Name of Organization Location (HQ) Avonchem Ltd Romil Indace Ltd Natchemco (UK) Ltd Jonathan Phillips (UK) Ltd Cornelius Group Plc Brown & Forth Ltd Bowden Chemicals Ltd Pearl Chemicals Camlab Heritage Chemicals Ltd Long-Range Europe Limited Banner Chemicals Group P&R Labpak Limited Clariant International Ltd Toscochimica S.p.A. Chimitex SpA Albachem Elettrochimica Valle Staffora S.p.a ARNSPERGER D H Scientific R2 ChemTec Cymit Quimica NEW CHEMICAL, SL QUIMIPUR, SL United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Switzerland Italy Italy Italy Italy Germany Germany Denmark Spain Spain Spain

Type Private Private Private Private Private Private Private Private Private Private Private Private Private Private Public Private Private Private Private Private Private Private Private Private Private

Net Sales 1994921* 2432118* 8156854* 30m(Turnover) 10301129* 42005498* 1814098* 342825* 1293680* 9197401* Data not available 1617100* 1213894* 4765594* 7.4 billion in 2011 Data not available 88,500,000 USD.(1=1,30USD) Data not available N/A 315 million euros Data not available Data not available Data not available Data not available Data not available

28

26 27 28 29 30 31 32 33 34 35 36 37 38 39

Table 4.2 (continued) Database of Acetic Anhydride Suppliers Target Quimica SL Spain Private PPH "STANDARD" Sp. z o. o Poland Private A-Cell Acetyl Cellulosics Ab P&S Chemical Epenhuysen Chemicals Molar Chemicals KFT CHEMAT Odczynniki i Wyposaenia Laboratoryjne Expert Trade Nordic Invest Prodasynth Kimeks Brenntag NV Fiers SA The Nichem Group Sweden The Netherlands The Netherlands Hungary Poland Romania Romania France Turkey Belgium Belgium Private Private Private Private Private Private Private Private Private Public Private

Data not available 350 million USD Data not available Data not available Data not available Data not available Data not available Data not available Data not available Data not available Data not available USD 12.1 billion Data not available Data not available

Northern Ireland Private

* - The data entry with this symbol is taken from Manta.com, represents Annual Revenue (USD $) and their employee strength is also taken from same website

4.2 Regional Results for End Sector Use of Acetic Anhydride 4.2.1 Eastern Europe Region Eastern Europe comprises of 12 countries namely 1) Armenia 2) Azerbaijan 3) Belarus 4) Bulgaria 5) Czech Republic 6) Hungary 7) Moldova 8) Poland 9) Romania 10) Russia 11) Slovakia 12) Ukraine Poland has two acetic anhydride suppliers and two famous food processing companies like PPZ "TrzemeszNo", Nowamyl S.A. Russia is also an important country which has good presence of chemical industries.

29

4.2.1.1 Observations 1) Out of 12 countries, only 1 i.e. Moldova doesnt have Chemical industry. It has the maximum number of this industry as compared to other regions.

91.7% (11)

8.3% (1)

Figure 4.1.1 Chemical Industry in Eastern European Region

2) Out of 12 countries, only 2 have Wood industry i.e. Bulgaria and Russia.

16.7% (2) 83.3% (10)

Figure 4.1.2 Wood Industry in Eastern European Region

30

3) Out of 12 Countries, only 1 doesnt have Food and Food processing industries i.e. Czech Republic

91.7% (11) 8.3% (1)

Figure 4.1.3 Food and Food Processing Industry in Eastern European Region

4) Out of 12 countries, only 2 have Dye industry i.e. Czech Republic and Poland

16.7% (2)

83.3% (10)

Figure 4.1.4 Dye Industry in Eastern European Region

31

5) In whole Eastern Europe, no country has Pharmaceutical Industry.

100% (12)

Figure 4.1.5 Pharmaceutical Industry in Eastern European Region 4.2.2 Northern Europe Northern Europe comprises of 12 countries namely 1) Denmark 2) Estonia 3) Faroe Islands (Denmark) 4) Finland 5) Greenland (Denmark) 6) Iceland 7) Ireland 8) Latvia 9) Lithuania 10) Norway 11) Sweden 12) United Kingdom This region is significant and crucial as it home to various important companies where Acetic Anhydride can finds its end-usage. The most crucial country is United Kingdom which is home to key manufacturers of Acetic Anhydride like BP, Apollo Scientific, Euram Chemicals Ltd, Vicker Laborateries Ltd, Finetech Industry Limited and Manufacturing plants of Eastman Chemical Company, Alfa Aesar. Norway is home to Yara Chemicals, which ranks 18th biggest chemical firm in world.

32

4.2.2.1 Observations 1) Out of 12 countries, only 5 have chemical industry.

41.7% (5)

58.3% (7)

Figure 4.2.1 Chemical Industry in Northern European Region

2) Wood industry is present in 5 countries. It has the maximum number of this industry as compared to other regions. Ireland is home to BSW Timber

41.7% (5)

58.3% (7)

Figure 4.2.2 Wood Industry in Northern European Region

33

3) The food and food processing industry is present in 8 countries. United Kingdom is Headquarter for Tate and Lyle, Kraft Foods (Cadbury), Unilever.

66.7% (8) 33.3% (4)

Figure 4.2.3 Food and Food Processing Industry in Northern European Region

4) Dye industry is present in only 2 countries i.e. Lithuania and United Kingdom.

16.7% (2)
83.3% (10)

Figure 4.2.4 Dye Industry in Northern European Region

34

5) Pharmaceutical industry is present in only 3 countries.

25% (3) 75% (9)

Figure 4.2.5 Pharmaceutical Industry in Northern European Region

4.2.3 Southern Region Southern region has highest number of countries i.e. 17 which are as follows 1) Albania 2) Andorra 3) Bosnia and Herzegovina 4) Croatia 5) Cyprus 6) Greece 7) Italy 8) Macedonia 9) Malta 10) Montenegro 11) Portugal 12) San Marino 13) Serbia 14) Slovenia 15) Spain 16) Turkey 17) Vatican City The economic condition of southern region isnt in good health as 3 major economies have Greece, Portugal and Spain has sought bail-out and worst affected by sovereign debt crisis. Economic Health of Cyprus, Italy isnt also robust.

35

4.2.3.1 Observations 1) Out of 17 countries, 10 have chemical industries. From point of view of Acetic Anhydride, Spain and Italy are important.

58.82% (10) 41.18% (7)

Figure 4.3.1 Chemical Industry in Southern European Region

2) Wood industry is present only in 6 countries.

35.29% (6)

64.71% (11)

Figure 4.3.2 Wood Industry in Southern European Region

36

3) Food and food processing industry is present in 13 countries. It has the maximum number of this industry as compared to other regions.

76.47% (13) 23.53% (4)

Figure 4.3.3 Food and Food Processing Industry in Southern European Region

4) Dye industry is present only in 1 country i.e. Italy

5.88% (1) 94.12% (16)

Figure 4.3.4 Dye Industry in Southern European Region

37

5) Pharmaceutical industry is present only in 5 countries.

29.41% (5) 70.59% (12)

Figure 4.3.5 Pharmaceutical Industry in Southern European Region

4.2.4 Western Europe Western Europe comprises of 9 countries yet it is known as the powerful region. The countries which fall under Western Europe are as follows 1) 2) 3) 4) 5) 6) 7) 8) 9) Austria Belgium France Germany Liechtenstein Luxembourg Monaco Switzerland The Netherlands

The economic health of Western Europe is robust due to presence of countries like Germany, The Netherlands and Switzerland. It is seen as powerful sector as it known for automobile industries, pharmaceuticals companies etc. Automobile industries also plays small role on Acetic anhydride demands as it is used as emulsifying agent in producing paints used over cars. The Netherlands, Germany and Belgium are famous for Antwerp-Rotterdam-Rhine-Ruhr Area (ARRRA) Belt, where several chemical industries are present. Switzerland is home to Novartis and Nestle.

38

4.2.4.1 Observations 1) Chemical industry is present in 7 countries. It is an important region for Acetic Anhydride as it is home Clariant, Kraeber, BUFA, BASF, Saudi International Petrochemical Company (Sipchem), TCI Europe N.V, Lonza, Merck.

77.8% (7)

22.2% (2)

Figure 4.4.1 Chemical Industry in Western European Region

2) Out of 9 countries, Wood industry is present in only 1 country i.e. Austria.

11.1% (1) 88.9% (8)

Figure 4.4.2 Wood Industry in Western European Region

39

3)

Food and Food Processing Industry is present in 8 countries.

88.9% (8)

11.1% (1)

Figure 4.4.3 Food and Food Processing Industry in Western European Region

4) Dye industry is present in 5 countries. It has the maximum number of this industry as compared to other regions.

55.6% (5) 44.4% (4)

Figure 4.5.4 Dye Industry in Western European Region

40

5) Pharmaceutical Industry is present in 4 countries. It has the maximum number of this industry as compared to other regions and is very important as it is home to Novartis, HoffmannLa, Roche, Merck, Solvay Pharmaceuticals, Sanofi AG.

44.4% (4) 55.6% (5)

Figure 4.4.5 Pharmaceutical Industry in Western European Region

4.2.5 Europe (Continent) 4.2.5.1 Observations 1) The Chemical industry is present in 30 countries which means around 60% of Europe has chemical industry.

66% (33)

34% (17)

Figure 4.5.1 Chemical Industry in Europe

41

2) The wood industry is present only 11 countries (22%)

28% (14) 72% (36)

Figure 4.5.2 Wood Industry in Europe

3) Food and food processing industry is present 30 countries (60%)

60% (30)

40% (20)

Figure 4.5.3 Food and Food Processing Industry in Europe

42

4) Dye industry is present in 10 countries (20%)

20% (10) 80%(40)

Figure 4.5.4 Dye Industry in Europe

5) Pharmaceutical industry present in 12 countries (24%)

24% (12)

76%(38)

Figure 4.5.5 Pharmaceutical Industry in Europe

43

Table 4.3 - Europe industry data (Consolidated)

Industry

Chemical
Present Percentage (No. of Countries)

Wood
Present Percentage (No. of Countries)

Food
Present Percentage (No. of Countries)

Dye

Pharmaceutical

Region (No. of Countries) North (12)

Present Present Percentage Percentage (No. of (No. of Countries) Countries)

41.7% (5)

41.7% (5)

66.7% (8)

16.7% (2)

25% (3)

East (12)

91.7% (11)

16.7% (2)

91.7% (11)

16.7% (2)

0% (0)

West (9)

77.8% (7)

11.1% (1)

88.9% (8)

55.6% (5)

44.4% (4)

South (17)

58.82% (10)

35.29% (6)

76.47% (13)

5.88%(1)

29.41% (5)

Total (50)

66% (33)

28% (14)

80% (40)

20% (10)

24% (12)

4.3 SWOT Profile of Jubilant Life Sciences Ltd The SWOT analysis is a holistic concept to analyse a topic regarding its strengths, weaknesses, opportunities and threats. Strengths and weaknesses are understood as so called internal, supporting or hindering factor, which can be directly influenced by the company itself. This report further analyses SWOT profile, Ansoff Matrix, Opportunity Strategy Evaluation grid, Threat Mitigation Strategy, product innovation Matrix and Trends Impact. Strengths 1. Industry leading position i. 9th largest producer of Acetic Anhydride and 4th in merchant sales ii. Global leader of Pyridrines and Derivatives 2. Extensive Range of Solutions and product line. 3. Strong customer relations 4. Vast presence across the value chain 5. Good corporate Image & established brand name

44

6. Supportive operational factors i. Strong & wide network of manpower across India ii. Insulation from high crude prices as it uses molasses and alcohol. iii. Possessing advanced technology & design ability iv. Low R&D and manufacturing cost. Weaknesses 1. Inaccessibility to cheap feedstock as compared to counterparts from China and Middle East. 2. Website doesnt support e-commerce and not at par with competitors website. 3. Unfavourable Forex movements which leads to loss in exports. Opportunities 1. New Business contracts and collaborations 2. Due to high cost of feedstock in Europe, Manufacturing is expensive for European counterparts. 3. Outsourcing opportunity for CRO division. 4. Flexible packaging for targeting laboratory usage. Threats 1. Environmental activism. 2. European economic and legal scenario 3. Competitive landscape not favourable. 4.3.1 The SWOT Matrix A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:

Strengths Opportunity Threats S-O strategies S-T strategies

Weaknesses W-O strategies W-T strategies

Figure 4.6 - The SWOT/TOWS Matrix 1) Strengths opportunities (SO) strategies In this portion of matrix, company pursue opportunities that are a good fit to the company's strengths.

45

1. Increase domestic and international market share aggressively 2. Take up outsourcing projects from developed country where generics are pushed 3. Target end users with small requirements which also doesnt comes under REACH. 4. Invest in brand recognition campaign. 2) Weakness Threats (WT) strategies In this column, establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats. 1. Focus on domestic markets or non-European markets 2. Joint venture with manufacturers in Middle East and China. 3) Strengths Threats (ST) strategies In this column of matrix, a firm identify ways that the firm can use its strengths to reduce its vulnerability to external threats. 1. Brand building exercises on sustainable development and environmental concern 2. Gear up for competition from China and Middle East. 3. Maintain strong customer relationships 4. Increase number of suppliers. 5. Diversify to dominate 6. Maintain technological and knowledge superiority. 4) Weakness opportunities (WO) strategies In this column, firm overcome weaknesses to pursue opportunities 1. Invest in manufacturing plant in China or Middle East. 2. Hedge Forex risk. 3. Add provision for e-commerce in website. Using Google Market finder and Google Market Intelligence, huge potential for online advertisements and ecommerce as well was found. Surprisingly, web search results for Acetic Anhydride are reported in India, which show huge potential to capitalize domestic chemical market with e-commerce. Moreover, websites traffic is very low as compared to competitors website as shown in Figure 4.7. The result are as follows

46

Figure 4.7 - Analysis of Website Traffic in comparison to competitors website

Figure 4.8 Google Market Finders Result

47

Figure 4.9 - Screenshot of Google Market Intelligences Result

48

Figure 4.10 Impact of SWOT Factors

Figure 4.11 - Opportunity Strategy Evaluation (OSE) Grid

49

Figure 4.12 - Threat Mitigation Strategy/ Challenge Impact Assessment (CIA) Grid

50

Table 4.4 - Internal Factor Evaluation Matrix - Jubilant Life Sciences Ltd Key Internal Factors Weight Rating Weighted. Score

Strengths 1. Industry leading position 2. Extensive Range of Solutions and product line 3. Strong customer relations 4. Vast presence across the value chain 0.10 0.05 0.10 0.15 . 5. Good corporate Image & established brand name 0.05 3 0.15 4 3 3 4 0.40 0.15 0.30 0.60

6. Supportive operational factors 0.20 Weakness 1. Inaccessibility to cheap feedstock as compared to counterparts from China and Middle East. 2. Forex movements which leads to loss in exports 3. Website doesnt support e-commerce. Total REMARKS

. 4 0.80

0.20 0.15 0.05 1

1 1 2

0.20 0.15 0.10 3.20

Strong internal position

The score of 3.20 indicate that BHEL is above average in their overall internal strategic position.

51

4.4 Segment Analysis Following five are top segments which Jubilant Life Sciences Ltd should focus as they have been chosen with help of Product Life Cycle Analysis as shown in following diagram

Figure 4.13 - Product Life Cycle Analysis Segment 1 Modified Starch This segment is the most promising segment as its demands is expected to grow exponentially. It witnessed slowdown in 2009 and 2010 due to global recession. However in 2012, It is expected 72 mn (2012) tons from 68 mn tons (2009). Cassava will become leading commodity. Its Industrial demand is 5 times more than FPI demand.

52

Figure 4.14 Segment Analysis Segment 2 Wood Preservatives After commercialization of Acetylated wood in 2007 as Accoya, the demand has gone up. They have increased plant production capacity to meet rising demand in 20011. Thus wood preservatives segment presents great opportunity. Segment 3 Chemical Industry Input This was stable and high due to absence of chemical substitute earlier. However, due to high manufacturing cost and prices of European manufacturers, the focus has shifted to China, India and Middle East as importing destination, which offers at low prices. The future presents intense competition for basic chemical with rise of China and Middle East. Even, USAs manufacturers have started to manufacture from China. Presently Middle East and China are seen as new manufacturing hub of Acetic Anhydride and areas where development at cost effective ways are adopted followed by India and Iran. Japan, Turkey and South Asia have emerged as new market with huge potential followed by North America, Eastern Europe and Southern Europe. Northern Europe and Western Europe are matured and saturated markets. This is diagrammatically represented in Regional Market Life Cycle Analysis

53

Figure 4.15 - Regional Market Life Cycle Analysis Segment 4 Pharmaceutical Industries Acetic anhydride finds its application in key drugs like Paracetemol and Aspirin. The market demand is stable. The generics which are pushed in developed nations present an opportunity for CRAMS division. Segments 5 Food and Food Processing Industries The market size is big. However, the search for organic substitute is high like Gum Arabic and Green Pea which makes it least preferred segment to target.

54

4.5 Porters Five Forces Model

Figure 4.16 - Porters 5 Forces Model Acetic Anhydride manufacturing industries 1) Threat of Substitutes is highest due to availability of various manufacturers and suppliers. 2) Bargaining Power of Suppliers is medium as variation in cost isnt high and most of manufacturers are vertically integrated. 3) Bargaining Power of Customers is low due to almost fixed or same prices followed. 4) Threat of New Entrant is low to medium because of rise in Middle East and China companies. However old manufacturers are shifting their bases to China to control the cost. 5) Intensity of Rivalry in Europe is medium with reasonable number of manufacturers present and huge market entry cost.

55

4.6 Ansoff Matrix Ansoff matrix, also known as Ansoff Product-Market Grid, was developed by Igor Ansoff to focus on the firm's present and potential products and markets (customers). By considering ways to grow via existing products and new products, and in existing markets and new markets, there are four possible product-market combinations. Ansoff Matrix for Jubilant Life Sciences Ltd follows as

Figure 4.17 Ansoff Matrix

56

4.7 Product Innovation Matrix

Figure 4.18 - Product Innovation Matrix 4.8 Market Impact of Top 10 Growth Trends of Acetic Anhydride

Figure 4.19 - Market Impact of Top 10 Growth Trends of Acetic Anhydride

57

4.9 PESTEL Analysis 4.9.1 Political Factors With increased concern from environmental inspite of implementing REACH and European sovereign debt, the political factors are not in favour of chemical industry. Presently, chemical industry looks for a balanced chemicals policy, incentives for innovation and non-bureaucratic regulations from the political side. The Eurozone and European Union are on the edge with idea of disintegration becoming dominant. However, stable political conditions with mostly democratic system makes it suitable investment destination. With recent Greek election, it will stay in Eurozone and will try to recover instead of immediately pulling out as proposed by opposition party. 4.9.2 Economic Factors 4.9.2.1 European Market for Acetic Anhydride As per EU Trade Monitor, European demand for Acetic Anhydride is flat to declining due to its usage in cigarette. Its use in textile fibers is also slowly declining. Smaller applications in wood preservatives, films and coatings are expected to follow GDP growth rates in Europe, but these account for less than 20% of demand for Acetic Anhydride. Ironically, Cigarette manufacturers reported improved profits during H1 2010 compared to the previous year. Tecnon OrbiChem has noted the closure of anhydride consuming plants in the UK and Italy in recent months, and there is ongoing speculation regarding the future of other European consumers as well. Market participants remain concerned about the influx of imported anhydride derivatives from China. The trend seen is contraction in downstream business during the past 12-18 months. 4.9.2.2 Effect of European Sovereign Debt Crisis As per CEFIC report, The European chemical trade groups mid-year summary forecast of chemicals sector economists predicts a standstill in EU chemicals output in 2012, after a relatively weak 1.3 per cent increase in 2011. The reason as per CEFIC Director General Hubert Mandery is decline in domestic demand

58

as compared 2011 due to increase in austerity measures which dampen business order and inventory build-up remains flat. Though theirs is an opportunity as weaker Euro will boost exports. The demand for industrial end user usage i.e. Automobile (which uses Dyes and various chemicals), Constructions has also dragged chemical industry down. Overall, there is a decline in chemical industry. 4.9.2.3 Effect of Competition European chemical industry faces competition from Middle East and China. As per Figure 4.20.1, NAFTA growth has become steady whereas Asia Pacific production growth is increasing exponentially.

Figure 4.20.1 International comparison of chemical production growth (Source CEFIC)

Figure 4.20.2 - Chemical Industry Profile - Chemical Sales by Country (Source CEFIC)

59

This is further evident from the fact that production of chemical worldwide by almost 40% from 1995 to 2005 but 95% of that growth was seen in developing countries. In 1997-2007, EU global sales of chemical declined by 2.7% whereas world saw increased by 60%. This can be attributed to strong demand in Asian markets supports growth in production for domestic chemical companies in that region. As a result, it has resulted in significant underutilization of capacity, plant shutdowns and margin erosions. 4.9.3 Social Factors Acetic anhydride finds it application in making heroin, a hallucinative drug, which is illegal and has an adverse effect of society. It is used cigarette filter, which demand is decreasing.

Figure 4.21 PESTEL Analysis

60

4.9.4 Technological Factors EU operational expenses are increasing, which increases price of chemicals. Recently, BP increased the price of Acetic Anhydride due to elevated operating costs, particularly in raw materials and freight. The cost of raw material feedstock is significantly higher in Western Europe than in most other regions of the world. Due to these feature, Europe is losing to China and Middle East. However, they have advanced technology, know-how experience and knowledge, which put them in an advantage.

4.9.5 Environmental Factors REACH is implemented in European Union which also termed as World Strictest Chemical law. REACH stands for registration, evaluation, authorization, and restriction of chemicals. Despite REACH, environmentalist objected to REACH due to some loopholes. The environmental laws are not relaxed and impose a cost on manufacturers and importers. 4.9.6 Legal Factors The legislation for REACH was proposed under dual reasoning: protection of human health and protection of the environment. The Regulation was voted by the European Parliament and of the Council on 18 December 2006, and came into force on 1 June 2007. It applies to all categories of chemical substances manufactured, imported, used as intermediates or placed on the market. 4.9.6.1 Objectives of REACH 1. Ensure protection of human health and the environment by the registration and testing of all existing and new chemical substances placed in the market and by imposing authorization requirements and restrictions to substances that give rise to high concern. The system is intended to promote the substitution of hazardous chemical substances by less dangerous ones.

61

2. Maintain and enhance the competitiveness of the EU chemical industry by stimulating innovation and minimizing, to the extent possible, the resource implications of the implementation of the Regulation for industry. 3. Prevent the fragmentation of the internal market 4. Increase transparency by enhancing access to information on chemicals for consumers in order to make informed decisions about the substances. 5. Non-animal testing is encouraged. 6. Conform to EU international obligations under the WTO ensuring that no unnecessary barriers to trade could be created and there would be no discrimination. 7. Ensure integration with international efforts in view of the global nature of the chemicals industry and the trans-boundary impact of certain chemical substances and in order to avoid the duplication of test efforts. 4.9.6.2 Benefits of REACH 1. Unlocks Innovation - New substances will require similar testing to that for existing ones. The new chemicals management system should also generate a vast amount of information on the properties of the substances and their uses down in the supply chain. 2. Economically Sustainable Chemical Industry - REACH was intended to increase consumer and investor confidence, as well as employee and community trust. 3. Social Cost It benefits environment and public health. 4.9.6.3 Disadvantages of REACH Termed as world's strictest chemical law, it might put SMEs in disadvantage in lon run. Even though there is a discount on ECHA fees for SMEs, those discounts are not that helpful when the price of letter of access is excessive. It is seen as barrier to trade as it imposes an additional cost that did not exist in the past

62

4.9.6.4 Substance Information Exchange Forum Led by the Lead Registrant, Substance Information Exchange Forum (SIEF) creation is mandatory by legislation. All parties who pre-registered for acetic anhydride are by definition members of the SIEF. Data holders may also choose to join the SIEF. The SIEF will promote, monitor, and keep its members aware of the following.

Progress towards registration. Data sharing arrangements amongst potential registrants. Compensation arrangements for data that will be used by others Joint submission.

4.9.6.5 Jubilant Life Sciences Ltd & REACH Presently, Jubilant Life Sciences Ltd has 35 dossier filings in European Union of which 31 are approved.

63

Companies manufacturing or importing chemical substances

European Market
N O NO

Quantity > 1 tonne/year

APPROACH SIEF IF MANY REGISTRANTS FOR ONE CHEMICAL

Authorization Restriction

European Chemicals Agency

(ECHA) in Helsinki, Finland (Manages the technical, scientific and administrative aspects of REACH)

Register
Deadlines 1/12/2010 - 1000 tonnes/a. & Toxic chemicals producers 1/06/2013 100 tonnes/a 1/06/2018 - 1 tonne/a.

Evaluation

Figure 4.22 - Flow Diagram of REACH

64

4.10 Observations in Modified Starch 4.10.1 Overall Market of Modified Starch in Europe Table 4.5 Un-modified and modified starch market structure & opportunities Market Structure Estimated Opportunity Industrial Food and Food processing industries Total 5.6 billion lbs.
1.4 billion lbs.

Around 6.9 billion lbs

Table 4.6 Dry starch usage in End sectors segments Segments Share Paper and Paper Board Chemical and Pharmaceuticals Food and Food processing industries Others Animal Feeds etc. 4.10.2 Major Players National,Cargills, Staley, Amylum, Roquette, Avebe, CPI and Eastman. 4.10.3 Potential Threats from Substitutes Gum Arabic and Green Pea 4.11 Summary of Findings To study the complete list of producers/manufacturers of Acetic Anhydride in Europe with their capabilities and complete profile. 62% 3% 32% 3%

Western region is the best region of all European regions in terms of Acetic Anhydride end usage industries. However the competition is highest in this region.. Though data depicts less number of pharmaceuticals industries, yet European is home to huge pharmaceutical companies. Similarly, Europe is huge market for dye industry where Acetic Anhydride can find its end use. Acetic Anhydride market demand in

65

Europe from export is more as indigenous industries are suffering due to economic factors To study breakup of consumption of Acetic Anhydride in term of end sector usage with special emphasis on modified starch.

Based on end usage, a firm should target Eastern Europe for chemical industry and food & food processing industry. Northern and Southern Europe are good wood industry. Western Europe is best for targeting pharmaceutical industry and dye industry.The demand for Acetic Anhydride in producing wood preservatives and modified starch is expected to grow. However, threat of European Sovereign crisis can have huge impact on its demand and can dampen it. Modified Starch market is promising and has huge potentials. Preferential target should be Chemicals and Food & Food Processing Industries which are present in abundance. To analyze and prepare a SWOT profile of Jubilant Life Sciences Ltd.

Jubilant Life Sciences Ltd. is a strong company, yet it should gear up to compete with China and Middle East. CRAMS divisions can be benefitted by high manufacturing cost faced by European manufacturers. Apart from Europe, it should concentrate and explore new markets too. One of the key findings is to should maintian customer relationship and balance trade-off between cost and quality. To analyse feasibility of e-commerce in chemical industry.

There is a good opportunity for Jubilant Life Sciences Ltd. to capitalize domestic and international market with help of e-Commerce. Although chemical companies operate in a mature and conservative environment, the industry is positioning itself to take advantage of the Internet economy. Recent publications estimate that the $500 billion chemical industry is expected to be one of the biggest contributors to the business-to-business (B2B) e-commerce boom. Figure shows the traffic rate of Jubilant Life Sciences Ltd, Lonza and Celanese. Clearly, there is low traffic in Jubilant Life Sciences Ltd Website.

66

CHAPTER-5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Recommendations 1) Target end usage of Acetic Anhydride in following priority i. ii. iii. iv. v. vi. Modified Starch Wood Preservatives Chemicals Industries Pharmaceutical Industries Dye Industries Food and Food Processing Industries

2) Aggressive approach in marketing should be avoided due to economic & market conditions i.e. sovereign debt crisis and slowdown. 3) Website can be remodeled as per European chemical manufacturers websites i.e. i. ii. Digital catalog or product search can be made easier. It should integrate subsidiarys websites with companys official website. iii. iv. v. It should add Language Preference It should be enabled with E-Commerce facility. It should have vibrant template.

4) Expansion in manufacturing capacity along with cost control is recommended to meet challenge from China and Middle East. 5) Jubilant Life Sciences Ltd can further diversify its portfolio in producing modified starch to capitalize on its growing demand and capitalize on acetylated wood in domestic market. 6) China can be looked up as next manufacturing site due to its cost advantage. Recently, BP opened up Acetic Acid plant in Nanjing, China as Joint venture with Sinopec. 7) Jubilant Life Sciences Ltd. should implement cost effective and efficient proposals - reducing power cost, steam consumption. 8) Jubilant Life Sciences Ltd can take advantage of new business contracts with European manufacturers and suppliers based on cost advantage.

67

9) Jubilant Life Sciences Ltd can consider flexible packaging to target laboratory usage. 10) Focus on customer relation due to increased competition from China and Middle East.

5.2 Limitations 1. Inaccessibility to all published report due to high cost. 2. Inaccessibility to Tecnon Orbichem price list due to high cost. 3. Some respondents werent opening up. 4. Mostly respondents do not reply to e-mails or contact us option in their website. 5. Communication barrier. 6. Limited time and resources.

5.3 Implications for Practice This paper would be of interest of chemical manufacturers, suppliers and traders who are interested in entering European market. The paper gives an exclusive insight on new chemical policy implemented by European Union called REACH, which pose as a major challenge for new entrants and exporters. The research paper also gives fresh insight of doing business in chemical industry with help of ecommerce.

5.4 Implications for Future Research This research paper paves way for further detailed research with higher time and resources. Based on this research, future research can test implementation of ecommerce and its success. Further research can study European industry regionally in detail and can map exact demand & market potential. Potential of acetylated wood and modified starch in domestic and international markets can be studied.

68

REFERENCES

1. Agarwal, Rajat. (2001), E-commerce: New opportunities for the chemical industry, ACS Publications, Vol. 31, No. 7, pp 1820. 2. Centre for Strategy & Evaluation Services. (2012), Interim Evaluation: Functioning of the European chemical market after the introduction of REACH, Centre for Strategy & Evaluation Services, pp 2-123 3. CEFIC. (2011), The European chemical industry in a worldwide perspective, The European Chemical Industry Council, pp 1-10 4. Deloitte. (2012), The Chemical Industry in the Netherlands: World leading today and in 20302050 Revised Edition 2012, Deloitte Touche Tohmatsu Limited, pp 8-15 5. Heinzelbecker, Klaus. (2005), Futuring in the European Chemical Industry, BASF Aktiengesellschaft, Vol. 2, No. 1, pp 3-25 6. KPMG International. (2009), The Future of the European Chemical Industry, KPMG International, pp 5-27 7. Patil, Sakharam K. (2010), Global Modified Starch Products & Carbohydrates Functional Foods Derivatives & Markets A Strategic Review, S.K. Patil & Associates pp 1-7 8. Roberts, M. (2000), Focus 2000, pp S5S7. 9. Roberts, M. (1999), Internet Focus, , pp S4S5

Web Resources
1) http://www.jubl.com/ 2) http://www.manta.com/ 3) http://www.chemnet.com/ 4) http://www.cefic.org/ 5) http://www.worldofchemicals.com/ 6) http://www.trademart.in/ 7) http://www.petrochemistry.net/ 8) http://www.linkedin.com/