CL6001 Lecture 2.pdf

CL 6001 Management of Chemical Projects Module 1, Lecture 2 Rajeev Pandia 2nd August 2024 Scope of Market Study......deliverables expected from an extensive market survey 2  1...

CL 6001 Management of Chemical Projects Module 1, Lecture 2 Rajeev Pandia 2nd August 2024 Scope of Market Study......deliverables expected from an extensive market survey 2  1 2 Demand (Past, Present, Future) Price Projections Supply (Past, Present, Future) Price Elasticity of Demand Market Segments Logistics : Requirements, Network, Costs Growth rate and drivers (GDP, Middle Class) Distribution Network Price History Warehousing Practices Price Drivers Special Needs (Oxygen Tank) Taxes, Tariffs Product Life Cycle Competition mapping (Local, regional, Quality Parameters : Specifications, Shelf international, market shares, Strengths and Life Issues weaknesses) 3  3 4 Risk of Obsolescence Similar Coverage For all Important Inputs Branding, Advertising Competing Products and Techno-Economic Comparison Credit Terms, Credit Risks Impact of Global Megatrends Customer Approval Process and Time Regulatory Issues Need for Semi-Commercial facility Legal (Product Lability) Packaging Past Reaction to New Entrants, Entry Barriers N-1, N-2, N+1, N+2 Spot v/s Contract Regime Product Functionality and Attributes (Solution v/s Product) Michael Porter Evaluation 4  Threat of new entrants Bargaining Bargaining power of power of suppliers customers Michael Porter Criteria Rivalry / Pressure from competitive substitute position among products existing producers Recap: from Last Lecture 5 Key Deliverables of Market Report......which insights can be expected out of market surveys? 6  Demand – Supply Gap and 01 08 Risks and Mitigation Recommended Capacity 02 Product Specifications 09 Credit and inventory levels Regulatory approvals (US FDA 03 Price 10 or GMP or Insecticide Board) 04 Customers List 11 Period of customer approvals 05 Contract Terms 12 Marketing and sales organization Distribution and Logistics 06 13 Product Differentiation Network and Costs Packaging Requirements and Special requirements (storage 07 14 costs at customer site) Similar information for all 15 important inputs 7 Sources of Information: Secondary......where should one look for information for market surveys? 8  Import and Trade Export Magazines Conference statistics Internet Presentations AI Tools Trade Fairs SECONDARY SOURCES OF INFORMATION Government publications Industry Associations Published Product Company Patents Reports Company Annual Websites Reports 9  Information Gathering Primary Research Questionnaires Interviews Data Analysis Delphi Iterations Final Recommendations 10 Feasibility Analyses......thorough checks that need to be made before and during the project execution 11  1 2 3 4 5 TECHNICAL COMMERCIAL FINANCIAL ENVIRONMENTAL MANAGERIAL FEASIBILITY FEASIBILITY FEASIBILITY FEASIBILITY EVALUATION Technology Market study Cost of Compliance Trained and Proof of concept leading to report production Effluents Experienced Repeatability and Profitability Environmental staff Safety aspects, recommendations Cost of project Impact Retention Ease of Economic size Green Chemistry Organization development or Funding Principles Structure availability Break even Carbon neutrality Culture IP protection analysis Water Scale of IRR (Internal Consumption operation Rate of Return Impact on Cash Flows Neighbouring Financial Ratios Communities Sensitivity 12  Group Assignment......Factories Act, Explosives Act, Pollution Control Laws and Indian Boiler Rules The submissions can include but not limited to Broad Purpose of the Act Key areas covered and key mandates (requirements) stated Impact of these requirements on plant design considerations 13