Clariant Chemicals (India) Limited - IBEF

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CLARIANT CHEMICALS

(INDIA) LIMITED

Chemicals division and Masterbatches.

Textile, Leather & Paper Chemicals division:

This division is one of the world's leading suppliers of specialty chemicals and dyes for the textile, leather and paper industries.Textile dyes include dispersion, reactive, acid and sulphur dyes, special chemicals for pre-treatment, dyeing, printing and finishing as well as optical brighteners and chemicals for functional treatment.The Paper Business supplies paper dyes, optical brighteners and process and pulping chemicals.The Leather Business produces chemicals for refining, finishing and dyeing as well as a complete range of wet-end chemicals.

Pigments and Additives division:This division develops and produces pigments for paints and lacquers, plastics and special applications.

The product range includes high performance pigments for the automotive and electronics industries and printing pigments for the printing ink industry, non-impact printing, ink jet and laser printing. It also produces additives to improve heat, light and weather resistance of plastics and paints, halogen free flame retardants (used in protective coatings, resins, thermoplastics and polyester fibres) and high quality waxes based on various raw materials.

Clariant is one of the leading specialty chemicals companies in the world and represented on five continents with over 100 group companies Global Overview of Clariant

Clariant is a Swiss specialty chemical company, which was formed in 1995 as a spin off from Sandoz.The company expanded by the incorporation of the specialty chemicals business of Hoechst (Germany) in 1997 and the acquisition of BTP Plc (UK) in 2000. It is today one of the leading specialty chemicals companies in the world. Strong business relationships, commitment to outstanding service and wide- ranging application know-how make Clariant a preferred partner for its customers. Its innovative products play a key role in its customers'

manufacturing and treatment processes or else add value to their end products. Its success is based on the know-how of its people and their ability to identify new customer needs at an early stage and to work together with customers to develop innovative and efficient solutions.

Clariant's businesses are organised in four divisions:

Textile, Leather and Paper Chemicals division, Pigments and Additives division, Functional

Company Mode of presence in India Year of entry Key business

Clariant Chemicals Subsidiary 1947 Specialty chemicals

(India) Limited (through Sandoz)

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31 Limited, into the group's operations in India.

In 2006, four of the affiliates were integrated

|into Colour-Chem Limited and the company was subsequently renamed Clariant Chemicals (India) Limited.

The merged entity today has a unified

organisational structure with a managing director, a complete product portfolio for each of

the merged businesses and a shared vision

of improving market leadership positions, enhancing profitability and succeeding in the growing Indian market.The goal of Clariant Chemicals (India) is to be recognised as the leading service-driven specialty chemicals company in the country,

representing a valuable repository of manufacturing and marketing experience.Today the company enjoys the number one position in the country in segments like pigments, textile chemicals, leather chemicals and diketene-based agro intermediates.

Clariant is committed to sustainable growth in India. Its 1,415 employees generate sales of roughly US$ 200 million through four business divisions - Textile, Leather & Paper Chemicals, Pigments & Additives, Functional Chemicals and Masterbatches. Post merger, the company has not lost a single customer nor faced

interruption in its business operations. Its business structure comprising of its four divisions is

organised to meet the specific requirements and Functional Chemicals:This division's products

are based on non-ionic, anionic and cationic surfactants and on polymers. Its key products are meant for the oil industry and high quality raw materials for detergents and cosmetics, combined with comprehensive services. Its performance chemicals are supplied to different industries like personal care, crop protection, paints and coatings, plastics, construction chemicals as well as the pharmaceutical industry. Its process chemicals are used for the production and refining of oil and natural gas, metal working, polyester, mining chemical, aviation, heating and cooling, and the automotive industry.

Masterbatches:This division supplies colour and additive concentrates and special mixtures of these components, making it a preferred supplier for industries like consumer goods, automotive, packaging, textiles and technical fibres, electrical and electronics and medical devices. At the local level, each of the division's 54 production plants provides a complete technical service for all products and applications.

Clariant, which is represented on five continents with over 100 group companies, employs around 21,500 people. Headquartered in Muttenz near Basel, Switzerland, it generated sales of US$ 6.64 billion in 2006.

Clariant in India

Clariant's presence in India through its affiliates goes back more than five decades. Its journey began in 1947 with the founding of Sandoz Products Limited.The acquisition of the Hoechst specialty chemicals business in 1997 brought Colour-Chem Limited and its subsidiaries,Vanavil Dyes & Chemicals Limited and Kundalika

Investments Pvt. Limited, into its fold.Thereafter, the acquisition of BTP Plc in 2000 led to the integration of a fourth company, BTP India Pvt.

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Efficiency improvements are already evident.

In purchasing, for instance, a unified Clariant has a lot more bargaining muscle. Previously,

four different organisations were purchasing raw materials on their own.The integrated company, therefore, represents a unique combination of technology, manufacturing, marketing, application and technical service strengths and is a valuable repository of knowledge and technical excellence.

In January 2007, Clariant successfully implemented SAP WINS, a common IT platform across all the businesses, sites and locations. SAP WINS is the system that is used globally by Clariant and Clariant opportunities of their markets. An overview

of its divisions and their markets are as follows:

Key Success Factors in India

Synergies from the merger

Flawless planning, co-ordinated teamwork and precise execution made the merger a process of five group companies that today form Clariant Chemicals (India) quite smooth. A year into the merger, it is apparent that this Clariant success story is all set to scale new heights.The merger facilitated the removal of duplications.Today, Clariant Chemicals (India) has brought all products of the affiliates under one umbrella. It offers a wider range of products and its distributors have a much better coverage. It is also deriving synergies in logistics, purchase and finance.

The merger has helped the management bundle its strengths to maximum advantage. Colour-Chem, for instance, was strong on manufacturing and technology, while Clariant (India) was strong on marketing. As a unified entity, the weaknesses of individual companies have been overcome.

Division Businesses Markets

Textile, Leather & Paper Chemicals Textile, Leather, Paper Clothing, home textiles, technical textiles, garment leather, automotive leather, paper, packaging, construction Pigments & Additives Coating, Plastic, Printing and Paints, lacquers, coatings, plastics,

Specialties Business automotive industry

Functional Chemicals Detergents, Performance Chemicals, Detergents, rinses and cleaners, Process Chemicals, Biocides, personal care products, aerospace, Specialty Fine Chemicals automotive and machine tools, crop

protection, paints and lacquers, plastics, construction, oil and gas extraction, mining, pharmaceutical industry, chemical industry Masterbatches Plastics, Fibres, Additives Automotive, textile and technical

fibres, electronic and electrical devices, home appliances, toys, medical devices, sporting goods, packaging

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33 has been achieved through International Agency

SQS (Swiss Quality International) under a Global Management System.

Strong network of operations

Clariant's operations span the length and breadth of the country. It has its offices in the metropolitans and main cities in India, state-of-the-art manufacturing sites at several strategic locations and technical service centres close to its main markets.

Future Plans

Clariant in India has aligned its business structure with that of Clariant globally.Today, all eyes are set on India, which holds strong potential due to its large population base.The economy is growing at a fast rate, and purchasing power is on the rise.

Clariant's vision is to be successful in the Indian market. Post merger, three things are on top of Clariant's priority list: serving the customers by close customer contact and intensive innovative activity, maximising the benefits of the integrated SAP WINS system and growing Clariant's business in India.Work is underway in all three areas.

Chemicals (India) Limited is now in a position to reap the numerous ongoing benefits of being part of the global system.

Innovative quality products

Clariant's innovative products play a key role in its customers' manufacturing and treatment processes and add value to their end products.

The success is based on the know-how of its people and their ability to identify new customer needs at an early stage and to work together with customers to develop innovative, efficient solutions.

Clariant employees are encouraged and supported to have a strong customer focus and to integrate quality and protection of the environment into their day-to-day operations. Since November 2005, a global certification for ISO-9001 and ISO-14001

Clariant's India operations

• Indian journey began in 1947 with the founding of Sandoz Products Limited

• Acquisition of Hoechst's specialty chemicals business, brought Colour-Chem Limited and its subsidiaries into its fold

• Acquisition of BTP Plc led to integration of BTP India Pvt. Limited into Clariant

• Operates through four business divisions - Textile, Leather & Paper Chemicals, Pigments & Additives, Functional Chemicals and Masterbatches

• Enjoys the number one position in the country in segments like pigments, textile chemicals, leather chemicals and diketene-based agro intermediates Manufacturing Kolshet, Roha,Thane,

Cuddalore, Kanchipuram, Khopoli Offices Mumbai, Ahmedabad, Surat, New

Delhi, Ludhiana, Kolkata, Bangalore, Chennai

Technical Service Thane, Panipat, Kanpur, Kolkata, Centres Chennai, Ranipet, Chromepet,

Vaniyambadi,Tirupur