IOL Chemicals and Pharmaceuticals Limited

Presented By:- SAHIL MIDDHA

MBA – 2IB

Introduction to Indian chemical industry

• One of the oldest industries in India.

• Total investment in Indian chemical industry is US$ 60 bn.

• Contributing 3% of India’s total GDP.

• Total employment generated was about 1 mn.

• 12th largest in the world and 3rd largest in Asia.

• Expected to grow at 15% p.a. in the near future.

source :www.chemicals.nic.in

Major chemicals

• Inorganic chemicals.

• Organic chemicals.

• Pesticides and insecticides.

• Dyes and dye stuffs.

Export and import of chemicals

Rs croresItems/year 2006-07 2007-08 2008-09

Exports of chemicals 571779 655864 840755

Imports of chemicals 840506 1012312 1374436

source :www.chemicals.nic.in

Mile Stones Crossed

• 1986 – IOLCP Established

• 1991 – Commenced Acetic Acid Production

• 1996 – Commissioned Ethyl Acetate Plant

• 1999 – Commenced Acetic Anhydride Production • 2000 – Commissioned Ibuprofen Plant

• 2006 – Commissioned Power Cogeneration

Mile Stones Crossed (Cont.)

• 2009 – Expansion of Acetic Acid, Ethyl Acetate, Acetic Anhydride and Ibuprofen Plant

• 2009-10 – Commissioned Mono Chloro Acetic Acid (MCA), Acetyl Chloride, Isobutyl Benzene (IBB) Plant

• 2010-11 – Commissioned Proton Pump Inhibitors Plant

Vision & Mission• Vision

To be the most admired and valuable company in bulk chemicals, intermediate specialty chemicals and APIs globally.

• Mission

The mission of IOLCP is to make the businesses of its buyer more and more productive by delivering superior products and services, deep respect for the individual, a dedication to affordable quality and reliability.

BOARD OF DIRECTORS•Mr. Varinder Gupta Chairman cum Managing Director

•Mr. R K Thukral Executive Director

• Dr. M.A. Zaheer Director

• Mr. Chandra Mohan Director

• Dr.(Mrs.) H.K Bal Director

•Mrs. Dimple Gupta Director

•Mr. Parminder Singh Cheema Director

• Mr. Ravi Partap Singh Director

•Mr. Yogesh Goel Director

Product RangeActive Pharmaceutical Ingredients • Ibuprofen• Proton Pump Inhibitors (PPI’s) (Proposed)

Chemical Products• Acetic Acid• Ethyl Acetate • Acetic Anhydride• Acetyl Chloride• Isobutyl Benzene (IBB)• Mono Cholro Acetic Acid (MCA)

The various international markets catered till date include:

1.BANGLADESH 15.IRAN 29.SPAIN 43.ITALY

2.EGYPT 16.VEITNAM 30.PHILIPPINES 44.MAURITIUS

3.UGANDA 17.KUWAIT 31.CHILE 45.CHILE

4.SYRIA 18.GERMAN 32.ZIMBABWE 46.TAIWAN

5.AUSTRALIA 19.COLOMBIA 33.URUGUAY 47.TASMANIA

6.DUBAI 20.SINGAPORE 34.GHANA 48.OMAN

7.PAKISTAN 21.HONG KONG 35.TURKEY 49.COLOMBIA

8.THAILAND 22.MALAWI 36.CHINA 50.SOUTH AMERICA

9.MALAYSIA 23.BRAZIL 37.CONGO 51.YEMEN

10.BOLIVIA 24.SOUTH KOREA 38.SUDAN 52. ARGENTINA

11.MEXICO 25.PERU 39.NIGERIA

12.VENEZUELA 26.GUATEMALA 40.KENYA

13.ALGERIA 27.NEPAL 41.NEW ZEALAND

14.LATAVIA 28.DENMARK 42.SRI LANKA

Global Market Presence

Departments• Corporate Commercial Purchase Department

• Corporate HRM

• Corporate Accounts & Finance Department

• Corporate ISD

• Corporate Law Department

• Dispatch

• Corporate MIS Department

• Production

•   Excise Department

SWOT ANALYSISStrengths:-

• Accepted product quality.

• Technical expertise in alcohol based industry.

• Transparency in business.

• Committed work force and cordial industrial relations.

• Ability to develop products as per customer requirements.

Weaknesses:-

• Location disadvantage.

SWOT ANALYSISOpportunities:-

• Vast untapped regulated markets.

• Continues research for developing new equipment for existing

plant.

• USFDA compliant plant.

Threats:-

• Excess Government regulation in movement of alcohol.

• Competitors capacity building.

Current Ratio

Particulars 2006-07 2007-08 2008-09

Current Assets 6307.85 Lacs 8809.62 Lacs 10917.08 Lacs

Current Liabilities 4042.13 Lacs 5283.49 Lacs 5861.50 Lacs

Current Ratio1.56

1.67 1.86

Acid Test Ratio/Quick Ratio

Particulars 2006-07 2007-08 2008-09

Quick Assets 3277.36 Lacs 5336.72 Lacs 5683.53 Lacs

Current Liabilities4042.13 Lacs 5283.49 Lacs 5861.50 Lacs

Quick Ratio 0.81 1.01 0.97

Inventory Turnover Ratio

Particulars 2006-07 2007-08 2008-09

COGS17159.47 Lacs

25766.02 Lacs 24868.38 Lacs

Avg. Inventory 2576.25 Lacs 3251.69 Lacs 4353.22 Lacs

I.T.R. (times) 6.66 7.92 5.71

I.H.P. (in days) 55 46 64

Debtors Turnover Ratio

Particulars 2006-07 2007-08 2008-09

Net credit sales 20259.40 Lacs

31864.85 Lacs 30185.84 Lacs

Avg. Debtors 1582.28 Lacs 2546.96 Lacs 2874.85 Lacs

D.T.R. (times) 13 13 11

D.C.P. (in days) 28 28 34

Creditors Turnover Ratio

Particulars 2006-07 2007-08 2008-09

Net Credit

Purchases

15907.17 Lacs 22749.22 Lacs 22168.01 Lacs

Avg. Creditors2367.79 Lacs 3567.67 Lacs 4142.82 Lacs

C.T.R (times) 7 6 5

C.P.P (in days) 52 61 73

Gross Profit Ratio

Particulars 2006-07 2007-08 2008-09

Gross profit 3099.93 Lacs 6028.26 Lacs 5317.46 Lacs

Net Sales 20259.4 Lacs 31794.28 Lacs 30185.84 Lacs

G.P. Ratio (%) 15.30 18.96 17.62

Net Profit Ratio

Particulars 2006-07 2007-08 2008-09

Net profit755.07 Lacs 1236.33 Lacs 1269.42 Lacs

Net Sales20259.4 Lacs 31794.28 Lacs 30185.84 Lacs

N.P. Ratio (%) 3.72 3.89 4.20

Financial Results for the Quarter ended 30 June, 2010

Trend - Sales

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DomesticExportsTotal

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Trend - Sales

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Burning issues of export management in India

Objectives• To study the consumption of acetyl chloride by leading

chemical manufacturers.

• To study the problems of chemical exporters in Delhi.

• To study the remedies of these problems.

Research Methodology

• Research Design – Descriptive

• Data Collection

– Primary Data - Structured questionnaire.

– Secondary Data – Internet.

Sampling PlanUniverse All the manufacturers and exporters chemicals in

India.

Population All manufacturers and exporters of chemicals in

Delhi.

Sampling Unit Any manufacturer and exporters of chemicals in

Delhi.

Sampling Size 16 manufacturers and exporters of chemicals.

Sampling Technique Convenience Sampling technique

Limitations• The respondents in the study may not represent the

true characteristics of the target market.

• Many of the respondents were busy in their work so they have not given proper time to answer the questions.

• Best efforts were made to consider all important variables of the study. Chances of some of the variable not appearing in the study are also not ruled out.

DATA ANALYSIS & INTERPRETATION

Figure 4.1: categories of the companyN = 16

inorg

anic

chem

icals

orga

nic c

hem

icals

pest

icide

/inse

cticid

e

dyes

and

dye

stuff

0

2

4

6

8

10

43

9

0

categories of company

nu

mb

er o

f re

spo

nd

ents

Figure 4.2 custom clearance procedures are highly

cumbersome and time consumingN = 16 (N=16)

yes no0

2

4

6

8

10

12 11

5

options

nu

mb

er o

f re

spo

nd

ents

Figure 4.3 misleading deals by the company (N=16)

yes no0

2

4

6

8

10

12

6

10

options

nu

mb

er o

r re

spo

nd

ents

Table 4.4 major risk that company suffersN = 16

personnel risk competition risk

credit risk liquidity risk0

1

2

3

4

5

6

3

5

4 4

risks

nu

mb

er o

f re

spo

nd

ents

Table 4.5 interdependency of various economies of the world is a threat during recession (N= 16)

yes no0

2

4

6

8

10

12

14

16

1816

0

options

nu

mb

er o

f re

spo

nd

ents

Table 4.6 factors act as hindrance in growth

N= 16

corruption labour shortage improper wastage

communication network

0

1

2

3

4

5

6

7

factors act as a hindrance in growth

nu

mb

er o

f re

spo

nd

ents

Table 4.7 Need to modify the pricing and promotional policies

(N=16)

yes no0

2

4

6

8

10

12

14 13

3

options

nu

mb

er o

f re

spo

nd

ents

Table 4.8 major problem that the company suffers (N=16)

infrastructure govt. support technology upgradation

realization of payment

any other0

1

2

3

4

5

6

76

5

3

2

0

major problem that company suffers

nu

mb

er o

f re

spo

nd

ents

Table 4.9 infrastructure that requires more attention towards

(N=16)

road network

rail facility airport port power any other(fuel)

0

1

2

3

4

5

6

7

3

1

0

4

6

2

infrastructure that requires more attention

nu

mb

er o

f re

spo

nd

ents

Findings• Total consumption of acetyl chloride in

south and west region is 800 MT/Month.

• Respondents told that the custom

clearance procedures are very tough and

time consuming.

• Respondents told that attention is required

towards power for development and

maintenance.

• Respondents told that major risk faced by

the companies are competition risk.

Findings (Cont.)

• Exchange rate fluctuations highly affect the business.

• Major problem that company suffers from infrastructure and government support.

Suggestions