Presented By…..

Patel Arju (1322)

 The chemical industry is characterized by the high sophistication of its processes, by advanced
automatic controls of plant operations and of products quality, by a high investment per employee,
and by high productivity per employee.

 The chemical industry is an industry where its raw materials are distinguished more for their
chemical properties than for their physical or mechanical properties.

 The basic chemicals can be further used to produce pharmaceuticals in medicinal

chemistry laboratories. These are first found by scientists in the research departments in
pharmaceutical companies or in a laboratory working with the company to optimize the synthesis of
the drug.
 chemical industry, the business of using chemical reactions to turn raw materials, such as
coal, oil, and salt, into a variety of products. During the 19th and 20th cent. technological
advances in the chemical industry dramatically altered the world's economy.

 Chemistry is one of the most important fields of study nowadays, covering the basics of
medicine production, being the origin of cosmetic industry, as well as forming the key
element for understanding life and biochemical reactions. The knowledge of chemistry in that
sense has spread in two main fields: research and industry.
 The most basic chemicals are bought by research laboratories of universities, institutes
or companies and are used for developing different compounds. They are the most
important part of the chemical industry, since without them further development would
be much slower and cumbersome.

 The basic chemicals can be further used to produce pharmaceuticals in medicinal

chemistry laboratories. These are first found by scientists in the research departments in
pharmaceutical companies or in a laboratory working with the company to optimize the
synthesis of the drug.
 IN INDIA…….

 Indian chemical industry is contributing around 6-7 percent of the Indian GDP(Gross
Domestic Production). It touches our lives in many different ways. Whether it is
thermoplastic furniture we use, or a synthetic garment we wear, or a drug we consume-we are
inextricably linked to it.

 At USD 100 billion, the industries contribution to India’s GDP will grow to 12 percent and its
share of the Global Industry will increase from 1.9 percent to 3.9 percent while if the current
growth rate are maintained, the Industry is expected to grow to USD 60 billion by 2010. In
that case, the Industry’s contribution to India’s GDP would increase to 7.1 percent and
its Global Share would increase to 2.3 percent.
 Soda ash

 Sodium Bicarbonate

 Caustic soda

 Chlorine, Liquid Bromine

 Gypsum

 Phosphoric acid

 Sulphuric acids
 Tata Chemicals

 UPL Limited

 India Glycols Limited

 BASF

 Pidilite Industries Limited

 Vikas WPS Limited

 Dow chemicals

 Sinopec

 SABIC

 Exxon Mobil

 Formosa Plastics

 Ineos

 Bayer

 LG chem
 POLITICAL FACTOR
 political factors include areas such as tax policy, labour law, environmental law,
trade restrictions, tariffs, and political stability.
 The political arena has a huge influence upon the regulation of businesses, and the
spending power of consumers and other businesses.

 ECONOMICAL FACTOR
 Economic factors include economic growth, interest rates,exchange rates and the
inflation rate.
 Marketers need to consider the state of a trading economy in the short and long-
terms.
 SOCIAL FACTOR
 Establishing safe and healthy work environment.

 Minimize process waste, and promote the recovery and recycling of materials.

 Social factors include the cultural aspects and include health

consciousness, population growth rate, age distribution, career attitudes and
emphasis on safety.

 TECHNOLOGICAL FACTOR
 While adoption of proven technologies may result in immediate gains.

 The industry is in search of innovative and cost effective solutions, there exist
proven technologies in certain other areas.
 The five competitive forces allow companies to distinguish economic features as well as issue
a board overview of the pleasant appearance of the industry.
 THREAT OF NEW ENTRY
 Government regulations and patents
 Significant capital requirements
 Intense R&D and human capital requirements

 THREAT OF SUBSTITUTES

 Buyers tend to need specific chemicals as inputs

 There really are no similar substitutes for chemicals
 Even if another chemical can be used, it is most likely produced by the same Industry
Players.

 BUYER POWER
 Chemicals are important inputs to many industries

 Those in chemical industry have many end-customers don’t rely on one customer

 The products (chemicals) are not greatly differentiated

 SUPPLIER POWER
 Chemical industry relies on supplies from a few large corporations (such as those in
petrochemicals industry)

 Chemical producers have limited substitutes for inputs

 Most suppliers are not dependent on their sales to chemical manufacturers

 RIVALRY AMONG EXISTING INDUSTRY

 Large number of competitors all competing for market share

 All are global competitors tends to little room for expansion

 All benefiting from economies of scale, so competing on price

SR NO FACTOR RESULT ATTRACTIVENESS

1 Threats of new entrance 3.20 High for the industry

2 Rivalry among existing 3.35 Moderate for the industry

firm

3 Threat of substitutes 2.40 Moderate for the industry

products

4 Bargaining power of 3.45 Moderate to high for the

buyer industry

5 Bargaining power of 3.65 moderate to high for the

supplier industry
 OPPORTUNITY THREATS
 competition in manufacturing
 Rural Market
 environmental safety norms
 efficient and quality
 Large informal sector
 Global outsourcing
 Power crises
 FDI In Chemical Industry

 Growing domestic demand

  CURRENT RATIO

180%
 =CURRENT ASSETS /CURRENT
160%

LIABILITY 140%
philips carbon
120%
black limited
100%
GHCL Limited
Ratio 2016 2015 2014 80%

60% UPL Limited

PHILLIPS 79% 84% 87%
CARBON 40%

BLACK Ltd 20%

0%
GHCL Ltd 75% 79% 86% 2016 2015 2014

UPL Ltd 124% 122% 126%

 LIQUID RATIO

100%

90%
= LIQUID ASSETS-
80%
INVENTORIES/LIQUID LIABILITY-
70% philips
BANK OVER DRAFT carban black
60% limited

GHCL Limited
Ratio 2016 2015 2014 50%

PHILLIPS 58% 56% 51% 40%

UPL Limited
CARBON 30%
BLACK
20%
Ltd
10%
GHCL Ltd 36% 40% 50%
0%
UPL Ltd 85% 91% 84% 2016 2015 2014
 NET PROFIT RATIO
12%

= NET PROFIT/SALES
10%

8%
philips carban
black limited

6% GHCL Limited

Ratio 2016 2015 2014

UPL Limited
PHILLIPS 1% 1% 4% 4%

CARBON
BLACK 2%

Ltd
GHCL Ltd 10% 8% 5% 0%
2016 2015 2014
UPL Ltd 11% 8% 9%
 GROSS PROFIT RATIO
16%

= GROSS PROFIT/SALES*100 14%

12%

10%

8% 2016

2015
Ratio 2016 2015 2014 6%
2014
PHILLIPS 3% 1% 4% 4%

CARBON
2%
BLACK
0%
Ltd philips GHCL UPL
GHCL Ltd 15% 11% 7% carban Limited Limited
black
UPL Ltd 13% 10% 11% limited
 RETURN ON ASSTES
30%

= NET PROFIT/TOTAL ASSETS 25%

20%

15% 2016

2015
Ratio 2016 2015 2014
10% 2014
PHILLIPS 1% 1% 4%
CARBON
5%
BLACK
Ltd 0%
GHCL Ltd 9% 7% 4% philips GHCL UPL
carban Limited Limited
UPL Ltd 8% 6% 7% black
limited
 AFTER TAX ROE
30%

25%
= NET PROFIT/EQUITY

20%
philips carbon
black limited

15% GHCL Limited

UPL Limited
Ratio 2016 2015 2014 10%

PHILLIPS 4% 2% 17%
CARBON 5%
BLACK
Ltd
GHCL Ltd 26% 24% 14% 0%
2016 2015 2014
UPL Ltd 18% 13% 18%
 PRE TAX ROE
40%

35%
= GRO SS PROFIT/EQUITY
30%

25% philips carban

black limited
Ratio 2016 2015 2014 20% GHCL Limited

PHILLIPS 11% 3% 17%

UPL Limited
15%
CARBON
BLACK 10%

Ltd
5%
GHCL Ltd 38% 34% 17%

UPL Ltd 29% 16% 22% 0%

2016 2015 2014
  OPERATING RATIO

100%

 = COGS/NET SALES
95%

philips carban
90% black limited

GHCL Limited

Ratio 2016 2015 2014

85% UPL Limited
PHILLIPS 98% 100% 97%
CARBON
BLACK 80%

Ltd
GHCL Ltd 85% 90% 93%
75%
UPL Ltd 94% 94% 90% 2016 2015 2014
 EPS
30%

= PROFIT AFTER TAX-PREFRENCE 25%

DIVIDEND/NO OF EQUITY
20% philips
carban black
limited
Ratio 2016 2015 2014 15% GHCL
PHILLIPS 7% 3% 25% Limited

CARBON
10%
UPL Limited
BLACK
Ltd
5%

GHCL Ltd 26% 18% 12%

0%
2016 2015 2014
UPL Ltd 16% 11% 22%
 TOTAL ASSET TURN OVER 1%
RATIO

= SALES / TOTAL ASSETS 1%

philips carban
1%
black limited

GHCL Limited

Ratio 2016 2015 2014

0% UPL Limited
PHILLIPS 1% 1% 1%
CARBON
BLACK 0%
Ltd

GHCL Ltd 1% 1% 1%
0%
UPL Ltd 1% 1% 1% 2016 2015 2014
THANK YOU…..