Name Particulars No.: 1 Acknowledgement Declaration Certificate Executive Summary 3
Name Particulars No.: 1 Acknowledgement Declaration Certificate Executive Summary 3
3 INTRODUCTION OF COMPANY
Company Profile 3-9
Product Profile 10-14
INDUSTRY OVERVIEW
Indian Petrochemical Industries 16-17
Indian Pharmaceutical Industry 18-22
Pharmaceutical Packaging Industry 23-25
4 INTRODUCTION TO THE PROJECT 26-30
5 RESEARCH METHODOLOGY 31-36
6 DATA ANALYSIS AND INTERPRETATION 37-45
7 MAJOR LEARNING 46
8 LIMITATION AND CONSTRAINS FACED 47
10 CONCLUSION 48
11 SUGGESIONS AND RECOMMENDATION 49
12 REFERENCES
ANNEXURE
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COMPANY PROFILE
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HPL is the second largest petrochemical industry in India with a total
capacity equivalent to 7, 00,000 TPA of ethylene. Process technologies for
various manufacturing plants have been selected from internationally
renowned vendors with an aim to produce world class products with
excellent safety and environment considerations.
Notable process technology suppliers and contractors for the project include–
Haldia Petrochemicals Ltd. will not only benefit the plastics industry in the
Eastern Region, its presence is expected to bring in much needed new
investments in end-use sectors such as processed food, edible oil, cement,
fertilizer, detergents, lube oil, automotive parts, thermo ware, electronics,
mosquito nets etc.
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Business Development Group of HPL
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This process will help creating an interest among the prospective
entrepreneurs to invest in the high demand segments, thus boosting the
overall consumption of plastics in the region. The company is focusing more
on the agro based industries, as it has identified rural market and agro based
sector are relatively untapped segments, and a huge growth potential for
plastics consumption exists in these segments. Now company has focused on
the Lube industries, which have a great potential in the eastern region. With
faster industrial growth, and especially increase in agricultural sector, the
Lube market shows speedy growth in this sector.
Business development effort in the eastern region has also borne fruits.
Compared to the all India industrial growth figures of 6.3% last fiscal, the all
India polyolefin market growth was ~8.7%. The growth in consumption in
the eastern India was 11% and the consumption in West Bengal grew by a
stunning 20%.
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Major Milestone
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2001 Commercial production started.
2000 Project Commissioned. Trial production started
1997 Project construction started
1996 Land Acquisition completed
1994 MOU signed between WBIDC, Chatterjee Fund
Management, Soros Fund Management & Tata group of
companies for implementation of HPL Complex through
a joint venture co.
1992 Environmental Clearance of the project received
1985 Incorporated as a public limited company
The coming of Haldia Petrochemicals Limited has not only had tremendous
impact on the resurgence of West Bengal but on the entire eastern region.
This is the largest investment in West Bengal after Durgapur Steel Plant in
the 60s.
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The plastics sector – often referred to as the “Sunrise Industry” – had not
grown sufficiently in the East, due to the non-availability of raw materials
in the region.
The Eastern Region with the population of almost 300 million people
converts only about 225 KTA of polyolefins. The consumption of plastics in
West Bengal is 3.1 kg/capita as compared to an average 3.8 kg/capita of all
India levels. This is miniscule when compared to the world average of
23kg/capita.
Consumption trends for finished plastic goods in the ER is at par with the
other regions of the country and as a result, a lot of products – both consumer
and specialized industrial products are imported into the Eastern Region from
different parts of the country.
Vision
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PRODUCT PROFILE
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Classification:
1. Thermoplastic
2. Thermosets
Polymers:
A simple chemical unit repeats itself a very large number of times in the
structure of a polymer molecule. This unit may consist of a single atom, or a
group of atoms linked chemically.
Polymerization:
Those organic molecules that are suitable for polymerization are the
monomers we just discussed.
Thermoplastics:
A material that repeatedly softens by when heated and hardens when cooled.
Thermosets :
Examples of Plastics:
Thermoplastics:
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Linear Low Density Poly Ethylene (LLDPE),
Polypropylene – PP
Polystyrene - PS
Poly Carbonate - PC
Thermosets:
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Plastic
Granules
There are various types of plastics, which can be used for preparing
packaging containers. They are mainly LLDPE, HDPE, PP, PVC and PET.
High Density Polyethylene: HDPE is the most widely used resin for plastic
containers. This material is economical, impact resistant, and provides a good
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moisture barrier. HDPE is compatible with a wide range of products
including acids and caustics but is not compatible with solvents. HDPE is
naturally translucent and flexible. While HDPE provides good protection at
below freezing temperatures, it cannot be used with products filled at over
160 °F (71.1 °C) or products requiring a hermetic (vacuum) seal.
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shampoos and cosmetic products. PVC exhibits poor resistance to high
temperatures and will distort at 160 °F (71.1 °C), making it incompatible
with hot filled products
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INDIAN PETROCHEMICAL INDUSTRIES
The petrochemical industry in India has been one of the fastest growing
industries in the country. This industry has immense importance in growth
and development of manufacturing industry.It provides the foundation for
manufacturing industries like construction, packaging, pharmaceuticals,
agriculture, textiles etc.
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India Ltd. (GAIL) and Haldia Petrochemicals Ltd. (HPL) used to dominate
the industry at a large extent.
The Growth:
The petrochemical industry in India came into existence during 1970s. The
1980s and 1990s saw some rapid growths for Indian petrochemical industry.
The biggest reason for this growth was the high demand for petrochemicals
in India, which grew at an annual rate of 13 to 14% since late 90s. The BMI
forecast of average annual growth in India over 2007-2011 is 14 to 16%.
The production of 5.06 MMT polymers during FY09 accounted for around
62% of the total production of key petrochemicals. It also achieved 88.5%
capacity utilization.
Key Segments:
Petrochemical industry is constituted of the following key segments:
Polymers:
The demand for polymers saw a growth of 13.4% during 2007,
comparing to a demand growth of 5.6% in 2006.
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Aromatics (Paraxylene): The demand for Paraxylene (PX) saw a
growth of 18% during 2007.
The Indian pharmaceutical industry can be divided into the bulk drug and
formulations segments.
Bulk Drugs
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Bulk drug production in the country recorded a CAGR of 20 per cent during
the period FY1991-2001.During the period FY1991-2000, bulk drugs exports
from India increased at a CAGR of 25 per cent and imports into India was
Rs. 22.65 billion in FY2001.
Formulations
Formulations are the end-products of the medicine manufacturing process,
and can take the form of tablets, capsules, injectables or syrups.The
production of formulations in India increased at a CAGR of 17 per cent
during the period FY1991-2001. The exports of formulations from India
increased at a CAGR of 29% during FY1991-2000.
Market Structure
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Rs 3,763.72 crore
Cipla
Rs 2,463.59 crore
Sun Pharma Industries
Rs 2,215.52 crore
Lupin Labs
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BCPL is still a success story with four factories – two in West Bengal ,one in
Mumbai ,one in Kanpur
The state capital, Kolkata was considered, at one point of time, for
production of cost effective and quality drugs. Pharmaceutical industries of
Kolkata shared more than 80 per cent of the national drug production in
1940, which has gradually been reduced to less than Six per cent in 2007.
The State Directorate of Drugs Control has extended a helping hand to the
pharmaceutical producers in meeting global standards in stages. The West
Bengal government is planning to announce a comprehensive Drug Policy for
the state.
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NAME OF COMPANIES TURNOVER IN Rs. Crores
Baidynath 76
Dey’s Medical 71
Palson drugs 28
Stadmed Private 17
EMCEE Pharmaceuticals 6
Burnet Pharmaceuticals 6
G D Pharmaceuticals 3
Union drugs 5
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STATE WISE NUMBER OF PHARMACEUTICAL COMPANIES
4000
3500
3000
2500 Bulk drug
manufacturing
2000
companies
1500
Drug formulation
1000 companies
500
0
North East West South
140
120
100
80
60 Bulk Drug Co.
40 Formulation Co.
20
0
West Bihar Orissa Jharkhand
Bengal
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PHARMACEUTICAL PACKAGING INDUSTRY
Primary packaging
Secondary packaging
Bottle labels, plastic wrapper, cardboard boxes and wooden cartons are
part of the secondary packaging industry.
One market research conducted by FIND/SVP Inc. revealed that during 1993
to 1997, pharmaceutical packaging market annually grew by 4.9% and
expected to increase in the coming years. The U.S remains the leader in
pharmaceutical packaging industry, followed by Japan and West Europe.
This survey also showed that within 2011 Pharmaceutical packaging industry
is expected to grow by 5.9% per annum and is predicted to reach $34billion
mark within 2011.
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Global Pharmaceutical Products Distribution in 2008
Type (%)
Rigid 57.5
Bottle 32
Blister 19
Prefilled Syringe 6.5
Flexible 42.5
Pouch 11
Tube 10.5
Vial 17
Other 4
Total 100
[Source: Institute of Packaging Professionals (IOPP)]
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The Indian pharmaceutical companies, specially the bulk drug manufacturing
companies, may have made rapid strides in developing new molecules and in
production techniques, but have a long way to go when it comes to
packaging. In fact, as of now, packaging still takes a back seat in the whole
process.
cardboard
Printing.
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ABOUT THE PRODUCT
What is HDPE?
Telecom Ducts
Containers
o Laundry detergent bottles
o Milk jugs
o Fuel tanks for vehicles
o Watering cans
Plastic lumber
Folding tables
Folding chairs
Storage sheds
Portable basketball system bases
Plastic bags
Chemical-resistant piping systems etc.
Glass
Polyethylene Terephthalate (PET)
Polyvinyl chloride (PVC)
Polypropylene (PP)
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In India the manufacturer of HDPE are Haldia Petrochemicals Ltd (HPL),
Reliance India Ltd (RIL), Indian Petrochemicals Corporation Ltd
(IPCL), and Gas Authority of India Ltd (GAIL).
GAIL
560KT KT
450 KT
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Data of Haldia Petrochemical Ltd. for HDPE
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Market share of High Density Poly Ethylene in Eastern India (HPL data
source):
HPL enjoys around 23% market share of the country and an overwhelming
64% market share of the eastern region.
IPCL
20%
HPL
64%
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Objective of the Project
Primary Objective:
Haldia Petrochemicals Limited is one of the major players in the
petrochemical industry in West Bengal. It has realized the tremendous
potential of the plastic container, mainly containers made of HDPE, for
Pharmaceutical products packaging. In realization of this opportunity it plans
to invite corporate to set up plastic container manufacturing unit in Kolkata
and surroundings for which it will be the major supplier of Raw materials.
In its quest to fulfill this objective Haldia Petrochemicals wishes to estimate
the potential of this market in the Kolkata and surroundings.
Secondary Objective:
Job Assigned:
In order to fulfill the above mentioned objectives, the job of market analysis
to estimate the demand of HDPE containers in pharmaceutical product
packaging and also the job to compare it with the demand of other materials
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for pharmaceutical packaging containers in Kolkata and surroundings was
assigned to me.
Key Responsibilities:
Understanding the purpose behind the job assigned and how it serves
the overall business purpose of company.
Exhibit seriousness attached to the assignment given and meeting in
times all the deadlines given and targets given
Understanding how other functional departments work.
Seeking as many meaningful answers as possible.
Attempting to build a cordial & beneficial relationship between the
institute as its ambassador and the company.
Stages of Project:
Mapping the Pharmaceutical companies of Eastern India state wise.
Collect preliminary data & contact details of pharmaceutical
manufacturing plants ofKolkata and surroundings.
Collect secondary data using Internet and existing database.
Interact with Purchase Manager/Production Head/Personnel manager
of various Pharmaceutical manufacturing plants and gauge the
requirement of various packaging materials.
Calculating the collected data and quantify the demand of different
types of plastic polymers.
Comparing and analyzing the calculated data.
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SCOPE OF THE STUDY
Geographical scope:
The survey was carried out in Kolkata and some other districts near
Kolkata.
Other Aspects:
The scope of the project is restricted only to the Pharmaceutical
manufacturing plants, who are the end users of various plastic
polymers.
SAMPLING PLAN:
This has been rationally done in such a way so that all the major
Pharmaceutical manufacturing houses of various parts of Kolkata and
surroundings can be covered to frame out the actual demand side.
SAMPLE SIZE:
DATA COLLECTION:
Data collection is one of the most important part of any project work.
Success or failure of any research depends on the validity and
accuracy of the data collected.
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Primary Source of data: Self –structured questionnaire has been
used for the collection of the data. The questionnaire consists 13
questions. Among which 9 questions (Q.1-8 and 13)are close ended
and 4 questions(Q.9-12) are open ended.
MARKET ANALYSIS:
In this part, effort has been made to represent the data of the survey in the
most comprehensible fashion. All the analysis based on primary data. It has
been focused to calculate the present market scenario of different types of
plastic containers for Pharmaceutical packaging in West Bengal (mainly
HDPE containers).
Finally the details gathered were tabulated, compiled and analyzes for
preparation of the report. The calculation used to find out the final
metric tonne per annum (MTA) amount is as follows –
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A= weight of one item in grams
GRAPHICAL REPRESENTATION:
Pie chart
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Data analysis and interpretation is done by the data collected according to the
prepare questionnaire from the respondents of 25 surveyed pharmaceutical
companies .
Q.1
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The required HDPE polymer for containers for 25 surveyed pharmaceutical
manufacturing plants is 339 MTA.
Q.2
23%
From Q.1 and Q.2we can find that the total requirement of HDPE
polymer in surveyed companies is 443 MTA.
In this 77% polymer is required for HDPE containers and rest for HDPE
caps and leads.
Q.3
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Bengal Chemical –Pheneol (Phenyl), Lysol , Bleaching powder
W.B.P.P.D.C.L - Phenyl.
29%
Non-Drug
Drug
71%
Q.4
From the data provided by the company MTA of required PET polymer
for container is calculated -
Q.5
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Product packed in PET containers:
Q.6
Q.7
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42%
PP Container
58%
PP Cap
From Q.6 and Q.7 we can find that the total requirement of HDPE
polymer in surveyed companies is 259 MTA.
In this 58% polymer is required for PP cap and rest for PP containers.
Q.8
From the data we found in Q.1, Q.2, Q.4, Q.6, Q.7, the total consumption of
various plastic polymers can be found is 2184MTA.
The percentage share of all plastic polymers is:
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7%
5%
5%
PET
HDPE containers
16%
HDPE caps
PP containers
PP caps
68%
Q.9
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Transparent – Glass bottles are transparent in nature, so the product
inside can be seen from outside.
Chemically inert –It is totally safe to store any kind of chemical
product in glass bottles. Because it does not react with any chemical.
High shelf -life – Product stored in glass bottles has high shelf-life.
Q.10
No breakage threat.
Q.11
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REASON OF USING PET BOTTLES:
Light in weight
Better barrier property – The gas barrier property of PET is not as good
as glass but it is better than any other plastic container.
Q.12
The main reason of using PP container is its cost. It is cheaper than any
other material used for containers.
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Q.13) UPCOMING PROJECTS
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MAJOR LEARNINGS
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LIMITATION AND CONSTRAINTS FACED
Response Error:
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CONCLUSION
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SUGGESION & RECOMMENDATION
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REFERENCES
Documents:
Sites:
www.business.mapsofindia.com/petrochemical
www.haldiapetrochemicals.com
www.pharmabiz.com
www.thedailystar.net
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QUESTIONNAIRE
COMPANY NAME:
1)If HDPE containers are used by the company, then what are the
sizes,individual weight and monthly requirement?
2) If HDPE caps are used by the company, then what are the
sizes,individual weight and monthly requirement?
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4)If PET containers are used by the company,then what are the
sizes,individual weight and monthly requirement?
6)If PP containers are used by the company, then what are the
sizes,individual weight and monthly requirement?
7)If PP caps are used by the company, then what are the sizes, individual
weight and monthly requirement?
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8) What kind of product is packed in those PP containers?
9) What are the reasons behind using or not using glass containers?
10)What are the reasons behind using or not using HDPE containers?
11) What are the reasons behind using or not using PET containers?
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12)What are the reasons behind using or not using PP containers?
(if any)
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