Feasibility & Development

Client wanted to be the first in country to setup a plant for a particular Chemical.

Our findings:

• Total market consumption per year: Approximately 100000 tons
• 75% of it was used in Agriculture; rest in Industrial
• 33% was manufactured within the country
• There’s about 22 large manufacturers, and 2 major importers
• At least 7 who launched production shut their plants due to price competition from China and Logistics constraints

Recommendation:

• Explore exports; domestic market definitely too competitive to rationalize capital investment

Given the value of a particular chemical used in refineries, the client wanted to evaluate the merit in setting up a plant for the particular chemical, use it in the refineries, and then find a market for the used product.

Our findings:

• We discovered that the market was swamped with suppliers
• However, given that it was all transactional, the potential to switch suppliers was high

Results:

• We helped the client get into long term agreements and engagements with manufacturing and processing companies as well as distributors
• This covered diverse sectors such as: fertilizers, detergents, metals, oils, batteries, pharma, amongst others
• We secured commitments on monthly consumptions, some into thousands of tons each month; and some in to hundreds
• This lead to not only finding a market, but also, building a captive market by driving relationship-based business