INITIAL REPORT

Executive TrainingMBA (2007-09)

By:MAMTA SHETTY

Enrollment No: 7NBMN010INC (Vashi - Navi Mumbai)

Submitted To:Ms. Shikha Pal (Faculty Guide)

SIP CentreICFAI National College, Thane

Summer Internship ProgramMBA program (Class of 2008)

INITIAL REPORT (IR)(To be submitted by April 7, 2008)

Part A- SIP Detail

INC Center V A S H IEnrollment Number 7 N B M N 0 1 0Name Of Student M A M T A S H E T T YProgram M B AName Of Faculty Guide S H I K H A P A LName of the Company A L K Y L A M I N E SAddress of The Company 401-407, Nirman Vyapar Kendra, Plot No. 10, Sector

17, Vashi, Navi Mumbai 400 703 (India)Phone number (91 22) 67946600

Name of CEO Y O G E S H M. K O T H A R I401-407 Nirman Vyapar KendraNavi Mumbai, Maharashtra 400703

Phone Off 91 22 789 0632Phone mob

Fax Off 91 22 789 0631Email

Name Of Company Guide J A M E S M A T H E W SDesignation Of Company Guide

F I N A N C E M A N A G E R

Contact Details of Company Guide

401-407, Nirman Vyapar Kendra, Plot No. 10, Sector 17, Vashi, Navi Mumbai 400 703 (India)Phone Off (91 22) 67946600Phone mobFax OffEmail

Reporting Date 2 5 0 3 2 0 0 8

1

PREFACE

The objective of practical training at MBA level is to give

the student an experience of real issues involved in the

business world. Practical knowledge also helps us to

identify how the theory’s can be applied in business life.

In this report I have put in best of the information about

my company “Alkyl Amines Chemicals Limited” on a

common platform, analyze their working and

performance, and highlight the companies profile

together with its customers and competitors.

2

ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the

possibility to complete this report. I want to thank the Company CFO,

Mr. RSR Murthy for giving me permission to commence this report in

the first instance, to do the necessary research work. I am bound to

Mr. G. S. Naik, GM Marketing and Mr. Pamod Yedekar, Deputy

Manager Personnel & Administration for their stimulating support.

I am deeply indebted to my company guide Mr. James Mathews

whose help, stimulating suggestions and encouragement helped me

for writing this report.

I want to thank, my colleagues and seniors from different

Departments for all their help, support, interest and valuable hints.

Especially I am obliged to Mrs. Sireesha Chandaluri for her great

support and help all through the preparation of this report.

3

SRNO. CONTENTS PAGE

NOS.

1. COMPANY PROFILE 5

2. CUSTOMERS 10

3. COMPETITORS 11

4. SWOT ANALYSIS 12

5. WHO IS WHO OF THE COMPANY 15

6. BUSINESS OBJECTIVES 16

7. ORIENTATION PROGRAM 18

4

COMPANY PROFILEIntroduction

Alkyl Amines Chemicals Limited (AKCL) is a global supplier of ammines and amine based chemicals to the pharmaceutical, agrochemical, rubber chemical and water treatment industries.The company offers aliphatic amines, which include methylamine, ethylamine, isopropylamine, propylamine, butylamine, ethylhexylamine, and cyclohexylamine; amine derivatives, such as amides, hydrochlorides, and mixed amines; and fine chemicals. It also provides custom synthesis, contract research and development, process validation and optimization, pilot plant studies, toll manufacturing, and semi-commercial and commercial fine chemical manufacturing services.

Alkyl Amines Chemicals Limited is a public Limited listed company. It belongs to the chemicals – Organic industry. It is listed in BSE and NSE. Its BSE Code is 506767 and NSE code is ALKYLAMINE. The company has a paid-up equity share capital of Rs. 88 million with an investor base of approx 8,500. The paid up value of each share is Rs. 10.

HistoryIt was incorporated in 1979 with the idea of making India self sufficient in Aliphatic Amines. The first plant was commissioned in 1982 at Patalganga to make ethylamine and cyclohexylamines with technology from Leonard Process Company, USA. The capacity was expanded in 1986 in the existing plant and another plant was set up in 1992 to make inter alia methylamines.

5

Manufacturing Sites:

Patalganga:Patalganga is about 70 kms from Mumbai, on the west coast of India. The location is on the banks of the river. Patalganga in one of India's largest Chemical Industrial Parks, which has the infrastructure necessary to manage the thousands of tonnes of products manufactured every year. The proximity to Mumbai and its ports and the customers in the region makes Patalganga an ideal site for supply of key materials. This location has 2 adjoining site covering a total of 10 acres (40000 sq mts.). This facility is home to 2 amine plants. Their R & D facilities are located in Hadapsar, Pune.

Kurkumbh:This 70-acre (280000 sq mts) facility is in a Chemical Industrial Park located about 70 kms southwest of the historic city of Pune. The site is well connected by roads to Western and Southern India and lies about 250 kms from the major mainland port at Nhava Sheva. Its proximity to Pune (a major industrial hub and home to the National Chemical Laboratory) makes availability of skilled manpower and materials a relatively easy task. This facility comprises of 7 plants including a new aliphatic amines facility.

Offices:

* Vashi Office -- 401-407 Nirman Vyapar Kendra, Plot no. 10, Sector-17, Vashi, Navi Mumbai- 400 703 (India)

*Worli Office -- 207 A, Kakad Chambers, 132 Dr. Annie Besant Road, Worli, Mumbai 400 018 (India)

Bankers / Auditors:

Bankers --- 1. Bank Of Baroda

6

2. State Bank Of India 3. Axis Bank Ltd.

Auditors --- Bansi S. Mehta & Company

Registrar --- Sharex Dynamic (India) Pvt. Ltd.

Associate companies:

Diamines and chemicals Ltd.: Along with its partner the S. Amit Group, Alkyl Amines Chemicals has a controlling stake in Diamines and Chemicals Ltd., the only manufacturer of ethyleneamines in India.

Alkyl Speciality Chemicals Limited:Alkyl Speciality Chemicals Limited is a 100% subsidiary company specialising in market development for speciality chemicals for its Principals. ASCL represents Degussa Speciality Chemicals and Rohm & Haas (Primene's)

Contract Services:

The contract manufacturing team provides a wide range of technology and product development, scale-up, as well as custom manufacturing support to clients in the agrochemical, pharmaceutical and speciality chemical industries.

Bioprocess Technology:Alkyl's bioprocess division was created to conduct R&D in the field of industrial biotechnology. Research is conducted with special emphasis on:* Bioseparations * Biotreatments* Biotransformations * Biocatalysis The division actively looks for technology and marketing partnership to commercialise its products.

7

Supplier Network:Suppliers are considered as Alkyl’s partner in progress. Alkyl’s Centralized purchase department is located at its head office in Vashi. Suppliers who have established business relation with AACL for a number of years have been accepted as registered Vendors for future supplies. Potential suppliers desiring business ties with AACL will have to fill in the Vendor Registration Form. On careful scrutiny of information furnished a decision is taken regarding the registration of a new supplier.

People:At AACL people are treated as most valuable asset. . Each member of the 'Alkyl Family' functions as a member of a team consciously working towards achieving the goal of the company in maintaining quality and productivity. All the management people are professionally qualified experts in their respective fields.

Collaboration and Joint Ventures:

Alkyl Amines has tie-ups with leading companies across the world. The company has a collaboration agreement with Acid Amines Technologie Inc, US, for technical know-how package and for putting up the plant. The company also has a joint venture with Goldschmidt AG, Germany, leading manufacturers of industrial surfactants and speciality chemicals with emphasis on organo-modified silicone based chemistry, Rohm & Haas of US etc. Its client list includes Novartis, Bayer, ICI, Ranbaxy and Glaxo.

New Technology Used:

8

*SAP Technology was implemented in AACL in the year 2006. This helps the company to get real time information from various locations. It also helps in better utilization and management of resources. Reporting is made easy through this technology as standard reports are available in SAP.

* Coal Boilers were installed for steam generation at the Patalganga plant. Previously they used LS-HS (Low Sulphur- High Speed) to operate the boilers which used to run on diesel.

Quality:

Product and service quality is the basis of AACL’s business growth and towards that it have a policy enumerated, procedures and systems devised and control system in place to ensure customer satisfaction. As recognition of its standards, the ISO 9001 certification has been awarded to both sites, Patalganga & Kurkumbh

Quality Policy at AACL:

“We at ALKYL AMINES CHEMICALS LIMITED are committed to provide quality products and services to our customers. We shall be sensitive to the needs of our customers and shall strive to exceed their expectations.

We shall train, motivate and involve our people to continually improve the effectiveness of our quality management system.

We shall attach high priority to safety, health and environmental aspects as a responsible corporate citizen.

In pursuit of the above, we shall establish the quality objectives which shall be reviewed periodically for continual improvement.

We shall maintain ethical business practices and create a mutually beneficial relationship with our suppliers."

CUSTOMERS

9

Customer satisfaction continues to remain AACL’s highest priority. Whether they meet domestic needs or those abroad, their dedication to this single minded objective has resulted in numerous fruitful relationships. Alkyl’s 1st customer was Besterna Chemicals Pvt. Ltd. who bought 3 drums of DEA to make diethylbenzamide which was the active ingredient for the mosquito repellent ‘Odomos’. The company and its business have since been bought over by Dabur and they still remain Alky’s customer. Its customer base can be divided into 5 segments depending upon the type of raw material. Few top customers based on their segments are listed below:

Pharmaceuticals --- * Dr. Reddy’s Laboratories * Glenmark * Cipla * Ranbaxy

* Novartis

Agriculture --- * Gujarat Agrochem Limited * Bayer Crop Science Ltd.

* Gharda Chemicals Ltd.

* United Phosphorous Ltd. * Excel Cropcare Ltd.

Dyes --- * Color Tex Industries Pvt. Ltd. * Spectrum Dyes and Chemicals Pvt. Ltd. * Retort Chemicals Pvt. Ltd.

Cosmetics --- * Loreal India Ltd. * Kaya Skin Care * Fem Care Cosmetics * Kusum Healthcare

Photochemical --- * Godrej Sarlee Ltd.& Solvents * Jindal Photochemicals Ltd. * Kodak India Pvt. Ltd.

10

COMPETITORS

Alkyl Amines Chemicals Limited belongs to the organic chemicals industry. There are a number of companies belonging to this industry, manufacturing amine and amine based products and thus giving a competition to AACL. Some of these Competitors are as listed below:

* Aarti Industries Ltd.

* Apex Chemicals Ltd.

* Cellulose Products of India Ltd.

* Dinesh Allorga Ltd,

* Arvind Industries Ltd.

* BASF India Ltd.

* Camphor And Allied Products Ltd.

* Crestchem Ltd.

* Elantas Beck India Ltd.

* Dujodwala Products Ltd.

* Balaji Chemical Industries

* Catalyst (India) Pvt. Ltd.

* Paam Pharmaceuticals (Delhi) Limited

* Madhushree Chemicals

* Mahesh Raj Chemicals Pvt. Ltd.

* Tata Chemicals Ltd.

11

SWOT ANALYSIS

Strength:

* Alkyl’s major strengths are mutual trust and transparency at all levels by consciously sharing information about the company and its operations. Such information is shared through formal meetings and also through our house magazine 'Alkyl Era'.

* The company’s strengths in engineering technology, R&D, and project

management allow it to provide a customised service that is unparalleled in quality and value. It has successfully served clients having special needs concerning intellectual property, confidentiality and the environment.

* AACL’s plant at Patalganga is one of India’s largest chemical industrial Parks, which has the infrastructure necessary to manage the thousands of tonnes of product manufactured every year.

* The proximity of Patalganga plant to Mumbai and its ports and the customer in the region makes Patalganga an ideal site of key materials.

* The Company can assist at every step in bringing a new product to market. By performing R&D services to commercially producing and marketing the product, it offers an end-to-end solution that is cost effective, efficient and rewarding.

* The Alkyl Global Supplier Network provides existing and potential suppliers around the world, an opportunity to interface electronically with Alkyl.

12

Weakness:

* Alkyl is not backward integrated for the manufacturing of the basic raw materials used to produce their finished products.

* The company is highly dependent on its suppliers for the basic raw materials.

Opportunity:

* The company can increase its customer base by increasing the range of products offered.

* The company can opt for backward integration, so that it does not have to depend on suppliers for basic raw materials.

*The company also has a scope of opting for forward integration, so that it

can sell its products directly into the market.

*Alkyl’s recent foray into Speciality chemicals will result in a higher value addition of the company.

*Alkyl has the scope of exploring new markets.

* The recent implementation of SAP technology will help the company earn huge profit as they will be able to provide better quality service to their customers.

.

13

Threats:

* The import substitutes from China and other countries is a threat for the

company.

* AKCL is dependent on crude base raw material which is highly volatile.

* Rupee Appreciation is a possible threat for the company as 30-50%

(approx.) of its products is exported.

* Increase in percentage of ethanol in fuel blending is one of the threats as

it puts pressure on prices of ethanol and this in turn increases the cost of

production.

*There is a possibility that certain Agro based molecules may be banned

in Europe and USA due to the effect on environment. This will impact the

sales adversely.

WHO IS WHO OF THE COMPANY

14

Board of Directors:

* Mr. Yogesh M. Kothari -- Chairman and MD

* Mr. Kirat Patel -- Executive Director

* Mr. Suneet Y Kothari -- Director Executive

* Mr. N. Shankar -- Nominee Director

* Mr. Premal N Kapadia -- Non Executive Director

* Dilip G. Piramal -- Non Executive Director

* Mr. Shyam B. Ghia -- Non Executive Director

* Hemendra M. Kothari -- Non Executive Director

* K R V Subramanian -- Non Executive Director

* Mr. Shobhan M. Thakore -- Non Executive Director

* Mr. Tarjani Vakil -- Non Executive Director

Key Executives:

* Mr. S S Khade -- General Manager (Corporate P & A.)

* Mr. Sameer S Katdare -- Vice President (Technical)

* Mr. S Saimani -- GM (Technology Development)

* Mr. K P Rajagopalan -- GM(Secretarial & Legal) & Compl.Officer

* Mr .R N Iyer -- Vice President (Manufacturing)

* Mr. R S R Murthy -- Chief Financial Officer

* Mr. S V Dandekar -- General Manager – Materials

* Mr. P. Somalwar -- General Manager – Business Development

* Mr. G. S. Naik -- General Manager – Marketing

15

BUSINESS OBJECTIVES

* AACL’s primary objective is to achieve Rs. 400 crore net sales by March

2010.

* It also has an objective ‘to create dynamic, collaborative and high speed

interface with its supply chain’.

* Alkyl Amines recognize that they are in an industry with a more than

average concern towards Health, Safety and the Environment. They believe

that accidents are preventable and risks to health are containable. Towards

addressing these concerns, they have outlined a Safety, Health and

Environment Policy which is as follows:

1. “All potential hazards for products and processes will be identified,

and precautions planned and implemented through all stages of the

production cycle - construction, operations, maintenance and delivery

2. The solutions will be based on principles of sustainable development

keeping in mind economic and technical aspects

3. All persons directly dealing in identified hazardous processes &

products will be made aware of the same and trained to handle

contingencies

4. We are committed to continuous improvement in matters related to

Safety, Health and Environment and our progress will be

communicated to shareholders regularly."

16

Apart from this the company is going to get itself rated with CRISIL, a

credit rating agency. In this regard the company has to produce various

documents. I have been assigned a responsibility to collect 2 such

information for the same purpose. I am supposed to approach the Marketing

and Purchase department, in order to collect the information from them and

furnish it to my company guide, Mr. James Mathews. The information that I

am supposed to collect is as follows:

* Collecting a list of Top 20 customers depending on the volume and

value for the last 3 years and 2007-08 YTD.

* Collecting a list of Top 10 Suppliers of all raw materials depending

on the volume and value separately during the last 3 years, and 2007-08

YTD, along with payment terms and details of long term contracts entered

by the company for supply of key materials, if any.

ORIENTATION PROGRAM

17

The orientation program at Alkyl Amines Chemicals Limited (AACL) seeks

to create an open environment that encourages reflection, individual

transparency and accountability, and a collective sense of pride and passion

for service. The company understands that creating and maintaining a

planned culture starts on the employees first day.  It also helps to build a

secure community where fellows and staff can share vulnerabilities, discuss

difficulties, and propose solutions throughout the fellowship years.

My orientation for SIP at AACL started on the 25th of March 2008 and

continued for 4 days i.e. till the 28th of March. On the first day, of the

program Mr. R S R Murthy, the Chief Financial Officer introduced me to my

company guide Mr. James Mathews and Mrs. Sireesha Chandaluri an

employee of the company. I was given a brief introduction about the

company profile by Mr. Mathews. I was also briefed about the various

existing policies & procedures followed by the company, along with their

rules & regulations.

Apart from this the orientation program also included the following-

* An arrangement for my work assignment and step-by-step introduction to

the job.

* A Schedule for on-the-job training.

* A designated person, to whom I could go for help.

* Brief about the departmental standards and requirements

18

* Information about the equipments and supplies available and how to

obtain additional ones.

* Information about the route to all areas which I would need to know for

my work assignment (e.g. IT room, HR desk, Fax etc.)

During the 4 days of orientation, I as a summer intern got an opportunity to

work closely with my company guide Mr. James Mathews and other

colleagues in our department to ensure that I had all the information and

resources l needed to feel comfortable and prepared. It was interactive and

informative and was designed to help me to be strategic in developing

positive and satisfying work experience.

Thus orientation program at AACL was rewarding experience that will

prepare me for the challenges that I am likely to encounter during my

internship and also in the future.

19

BIBLIOGRAPHY

www.alkylamines.com

http://www.contentlinks.asiancerc.com/telegraph/Fundamental/

CompanyProfile.asp?

CompanyCode=12070001&CompanyName=Alkyl%20Amines

%20Chemicals%20Ltd.&MajorSector=1&Ticker=Alkyl+Amine+

http://www.chemspecindia.com/page.cfm/action=Exhib/

ExhibID=00002

http://content.icicidirect.com/alkyl.asp

http://www.iitk.ac.in/infocell/iitk/newhtml/archivecnews.htm

http://myiris.com/shares/company/snapShotShow.php?

icode=ALKAMICH

20