indian economic growth and the process industry ajit c. kapadia chairman, spectra dynamics limited...
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Indian Economic Growth and the Process Industry
Ajit C. KapadiaAjit C. KapadiaChairman, Spectra Dynamics LimitedChairman, Spectra Dynamics LimitedJune 2008June 2008
Apr 10, 2023 … Excellence in Performance … 2
Outline
Indian Market UpdateIndian Market Update
Impact of Economic GrowthImpact of Economic Growth
Process Industry OpportunitiesProcess Industry Opportunities
Background of Spectra Dynamics Background of Spectra Dynamics LimitedLimited
Apr 10, 2023 … Excellence in Performance … 3
Outline
Indian Market UpdateIndian Market Update
Impact of Economic GrowthImpact of Economic Growth
Process Industry OpportunitiesProcess Industry Opportunities
Background of Spectra Dynamics Background of Spectra Dynamics LimitedLimited
Apr 10, 2023 … Excellence in Performance … 4
Indian Market Update
Rapidly growing economyRapidly growing economy Steady GDP growth of 6-8% in the last 5 yrs Industrial growth >10%1
Large domestic marketLarge domestic market $ 1.2 trillion GDP2 (League of “Top Twelve”)
4th largest GDP (with PPP) at $ 3.7 trillion2
Population of over 1 billion Over 50% of the population under 25 yrs of
age Process industry: $ 150 billion3 in sales
Sources: 1The Economic Times (2007) 2http://www.cia.gov/cia/publications/factbook (2005) 3Capital Market Scoreboard (2005)
Apr 10, 2023 … Excellence in Performance … 5
India Market Update
2 %
4 %
6 %
8 %
10 %
1950 1980 1990 20001960 1970
Eco
no
mic
Gro
wth
Rat
e
The early years- 1950s – 1980s- Socialistic approach- Public sector monoliths- Smaller private industry
The early years- 1950s – 1980s- Socialistic approach- Public sector monoliths- Smaller private industry
Market reform years- Early 1990s- Open market approach- Rise of private sector industry - Small, mid-sized companies - International companies
Market reform years- Early 1990s- Open market approach- Rise of private sector industry - Small, mid-sized companies - International companies
Growth spurt years- Late 1990s & Onwards- Rapid economic growth- Private sector gaining dominance - Rush of international companies
Growth spurt years- Late 1990s & Onwards- Rapid economic growth- Private sector gaining dominance - Rush of international companies
Around 9%
Historical Historical PerspectivePerspective
Apr 10, 2023 … Excellence in Performance … 6
Indian Market Update
Oil & GasOil & Gas Markets reforms from 1990s Rise in active players
RefineryRefinery Surge in refining capacity PSU & private enterprise
PetrochemicalsPetrochemicals Increased activity Several new complexes in
queue ChemicalsChemicals
Private enterprise coming of age
Numerous players evolving
Oil & Gas - No. of Active Players
0
4
8
12
16
1990 1995 2000 2005
Refinery - MMPTA
0
40
80
120
1990 1995 2000 2005
Petrochemicals - KTP Ethylene
0
400
800
1200
1990 1995 2000 2005
Chemicals - Player > $ 500M
0
20
40
60
1990 1995 2000 2005
Apr 10, 2023 … Excellence in Performance … 7
Outline
Indian Market UpdateIndian Market Update
Impact of Economic GrowthImpact of Economic Growth
Process Industry OpportunitiesProcess Industry Opportunities
Background of Spectra Dynamics Background of Spectra Dynamics LimitedLimited
Apr 10, 2023 … Excellence in Performance … 8
Impact of Economic Growth
Growing middle class Growing middle class Fiscal Standards
Process industry salaries ~ 300-400% increase in 3-4 yrs
Inflation steady around 5% Professional Stability Quality of life
Increased affordability Lifestyle enhancement Availability of services
In Orbit Mall, Mumbai
More Mega Store, Vadodara
Apr 10, 2023 … Excellence in Performance … 9
Impact of Economic Growth
Infrastructure Real Estate
Community approach Mega & 2nd tier cities
Education Schools
Quality & availability International Schools Daycare & after-school activities
Universities New Private Universities
E.g. Nirma University, Pandit Dindayal University, UPSEG
MS University, Vadodara
Gurgaon-Delhi Highway
Apr 10, 2023 … Excellence in Performance … 10
Impact of Economic Growth
Medical facilitiesMedical facilities Quality and affordability Hospitals & medical institutions
E.g. Apollo, Sterling, Bhailal Amin Franchise approach by Manipal
Private emergency services Health Insurance
CommunicationsCommunications Telecommunications
Cell Phones – Blackberry, others Privatization & availability
Internet Broadband availability & affordability
Breach Candy Hospital, Mumbai
Telecommunication Improvements
Apr 10, 2023 … Excellence in Performance … 11
Impact of Economic Growth
TransportationTransportation Air
Numerous new airlines Convenience and affordability
Rail Several new trains Online reservation Goods transportation
Road Expressway Quadrangle Western Region
Mumbai-Vadodara-Ahmedabad Private Bus Services
Seamless relocation services Vadodara-Ahmedabad Expressway
Various different airlines
Apr 10, 2023 … Excellence in Performance … 12
Impact of Economic Growth
ServicesServices Net banking Personal Credit Availability Online payment (Telephone, electricity, water bills) Availability of LPG Cylinder & Pipeline gas (Gujarat) Convenient Petrol Pumps
Goods / EntertainmentGoods / Entertainment Shopping malls, department, grocery, electronics
stores FM Stations , Satellite TV & Radio Multiplexes, IPL, Tourism Infrastructure
Apr 10, 2023 … Excellence in Performance … 13
Impact of Economic Growth
Not all is rosyNot all is rosy Lagging infrastructure
City development and infrastructure Governance issues persist
Systems for approvals, regulations Rural development still slow
Largely untouched by the industrial development
Apr 10, 2023 … Excellence in Performance … 14
Outline
Indian Market UpdateIndian Market Update
Impact of Economic GrowthImpact of Economic Growth
Process Industry OpportunitiesProcess Industry Opportunities
Background of Spectra Dynamics Background of Spectra Dynamics LimitedLimited
Apr 10, 2023 … Excellence in Performance … 15
Indian Process Industry: Operating Co. Large CapsLarge Caps
Refineries Petrochemicals E&P Activities Pipeline (Transportation, Distribution)
Mid / Small CapsMid / Small Caps Petrochemicals Chemicals Pharmaceutical
Apr 10, 2023 … Excellence in Performance … 16
Indian Process Industry: Operating Co. New Opportunities / DevelopmentNew Opportunities / Development
Agro products Bio fuels, Food products, others
Coal-based fuels Coal to liquids, gas
Hydrometallurgy Cu, Zn, Ni, Co and others
Apr 10, 2023 … Excellence in Performance … 17
Indian Process Industry: Engineering Co. DomesticDomestic
EIL, L&T, Punj Llyod InternationalInternational
Several: Fluor, Lummus, Bechtel, Aker, Technip, Udhe, …
Basic Process workBasic Process work EIL & who?
Mid / small companiesMid / small companies Several detail engineering vendors Basic process work?
Apr 10, 2023 … Excellence in Performance … 18
Indian Process Industry
Opportunities for EngineersOpportunities for Engineers Numerous mega projects (New / Expansions)
Refineries: 8-9 Petrochemical Complexes: 6-7 Fertilizer Units: 2-3
Many other large to mid-sized projects Virtually all private companies expanding rapidly
Growth in all sectors of the process industry Oil & Gas, Refinery, Petrochemicals, Fine
Chemicals, Pharmaceuticals, others
Apr 10, 2023 … Excellence in Performance … 19
Indian Process Industry
OpportunitiesOpportunities Resource limitations
Training & development Management participation
Access to management participation Involvement in strategic and directional activities Participation in organizational growth
Apr 10, 2023 … Excellence in Performance … 20
Outline
Indian Market UpdateIndian Market Update
Impact of Economic GrowthImpact of Economic Growth
Process Industry OpportunitiesProcess Industry Opportunities
Background of Spectra Dynamics Background of Spectra Dynamics LimitedLimited
Apr 10, 2023 … Excellence in Performance … 21
Spectra Dynamics Limited
Offices in Vadodara (HQ), Mumbai & DelhiOffices in Vadodara (HQ), Mumbai & Delhi Started in May, 2004Started in May, 2004 Consulting ServicesConsulting Services
Conceptual Design Front-end Engineering Design Limited Detailed Engineering Safety Services
Over 50 projectsOver 50 projects About 25 technical personnelAbout 25 technical personnel www.specdynamics.com Spectra’s Vadodara Office
Apr 10, 2023 … Excellence in Performance … 22
Location -Vadodara
Strategic position at Western India
Central to the process industry “corridor”
1.9 million residents
Rapidly developing 2nd tier city
Mumbai 442 kmDelhi 1039 kmChennai 1266 kmKolkata 1893 km
Distance to Distance to majormajor citiescities
VadodaVadodarara
GUJARATGUJARAT
INDIAINDIA
Apr 10, 2023 … Excellence in Performance … 23
Location - Vadodara
Process Industry “Corridor”Process Industry “Corridor” Oil & gas Refinery Petrochemicals Fine chemicals Others
Refinery, Petrochemicals
Chemicals, Pharma & FertilizersEngineering & Construction
Oil & Gas
Vadodara
Mumbai
Delhi
Calcutta
Hyderabad
Bangalore Chenn
ai
Jamnagar
Traditional Center of ActivityTraditional Center of Activity Alembic Pharmaceuticals 1907 Sarabhai Chemicals 1943 IOCL Gujarat Refinery 1965 GSFC 1970 IPCL Naphtha Cracker 1978 GNFC & Other 1980s
Apr 10, 2023 … Excellence in Performance … 24
Location - Vadodara
Maharaja Sayajirao’s CityMaharaja Sayajirao’s City Education Culture Safety Medical Facilities Cosmopolitan Internal distances
Quality of lifeQuality of life Availability of organized retail
Groceries: More, Spencer, Reliance Fresh, others Malls: Seven Seas, Vadodara Central, others
Affordable Real estate Prices at 35 – 100 $/ sq. ft.
Rail, Air & Road connectivity Western railway hub Proximity to Ahmedabad airport
Infrastructure Not stretched like most other Indian cities
Laxmi Vilas Palace
Vadodara Central Mall
Apr 10, 2023 … Excellence in Performance … 25
Location - Vadodara
Cost of LivingCost of Living Food, Home, Education, Transportation, Health
care Estimated numbersEstimated numbers
City Cost of Living Average Salary
Vadodara $ 100 $ 100
Houston $ 294 $ 344
Calgary $ 307 $ 352
Abu Dhabi $ 266 $ 248
Delhi $ 176 $ 116
Mumbai $ 182 $ 116
Pune $ 144 $ 106
Bangalore $ 169 $ 112
Apr 10, 2023 … Excellence in Performance … 26
Promoters
Ajit KapadiaAjit Kapadia MS Chemical Engineering, Louisville, KY 1963 Career Highlights
1963 – 1970, Process Engineer, Girdler and Fluor Inc, in USA 1970 – 1984, Process Engineer & Dept Head, Union Carbide
& EIL 1984 – 1987, Director Planning, GAIL 1987 – 2003, Startup President & Managing Director, HOEC
KG TuliKG Tuli Founded Paramount Limited in 1960 - Vadodara, India Leading Indian EPC Contractor for
Waste Water & Effluent Treatment Plants Air Pollution Control Systems
200+ personnel, 270+ Major Projects Executed, 10+ Countries
Apr 10, 2023 … Excellence in Performance … 27
Company Highlights
Leading private sector process design companyLeading private sector process design company Key people: years of international process
engineering Over 70% of the projects in the FEED area Domestic & international Several Repeat customers
Since inception during the last four yearsSince inception during the last four years Average annual growth of about 90% About 50 projects since inception
25+ Customers25+ Customers Medium-sized and large Indian players Some International players in India Overseas Projects
Apr 10, 2023 … Excellence in Performance … 28
Company FocusCompany Focus Process engineering leader in & around India High-end process-centric work Challenging and developmental projects
Management StyleManagement Style Professional work environment Agile & flexible to customer / market needs Employee-oriented manner of growth Supportive and warm management
Company Focus & Management Style
Apr 10, 2023 … Excellence in Performance … 29
Key Personnel Outline
Mr. A.C. Kothari, Technical DirectorMr. A.C. Kothari, Technical Director M.S. Chemical Engineering, Texas Tech Univ., 1981 Over 27 yrs in Process Engineering 8 years in Houston, with Halder Topsoe & John Brown
Mr. Jay Kapadia, Executive DirectorMr. Jay Kapadia, Executive Director M.S. Chemical Engineering, Univ of Houston,1995 Over 13 yrs in Process Engr & Adv Process Solutions 11 yrs in Houston, with Honeywell, Fluor & Invensys
Apr 10, 2023 … Excellence in Performance … 30
Key Personnel Outline
Mr. D.P. Joshi, General Manager, EngineeringMr. D.P. Joshi, General Manager, Engineering B.E. Chemical Engineering, M.S. University,1973 Over 35 yrs in Design, Engineering & Project
Execution About 10 yrs of overseas experience in Gulf
Dr. U.K. Dutta, Senior ConsultantDr. U.K. Dutta, Senior Consultant Ph.D. Chemical Engineering, Loughborough Univ.,
U.K. Over 40 yrs in Process Design, Training
&Management Senior mgmt positions held in various organizations
Apr 10, 2023 … Excellence in Performance … 31
Consulting Services
Conceptual DesignConceptual Design
Front-End Engineering DesignFront-End Engineering Design
Detailed Engineering SupportDetailed Engineering Support
Safety ServicesSafety Services
Apr 10, 2023 … Excellence in Performance … 32
Conceptual Design
Commercial Technology SelectionCommercial Technology Selection Identification of available technologies Techno-commercial analysis
Viability for Indian conditions Payback period & Sensitivity analysis
Spectra Technology SolutionsSpectra Technology Solutions Ammonia Separation & Recovery Solvent Separation & Re-circulation LPG Recovery from Natural Gas
Get the right technology for your needs !
Apr 10, 2023 … Excellence in Performance … 33
Process Engineering ServicesProcess Engineering Services Pre-design Phase
Feasibility Studies & Cost Estimation Design Phase
Lab / Pilot Plant Scale Up Process Simulation Studies Heat Exchanger Design & Analysis Studies Complete FEED Package Development Equipment Engineering
Operational Phase Utilities / Energy Optimization & Integration Plant Debottlenecking /Improvement Services
Front-End Engineering Design
Apr 10, 2023 … Excellence in Performance … 34
Detailed Engineering Management Project Co-ordination & ManagementProject Co-ordination & Management
Coordination among engineering disciplines Project progress monitoring & reporting Coordination with Client
Technical Assistance for ProcurementTechnical Assistance for Procurement Detailed Equipment Specifications Quotes from Vendors Technical review of vendor documents
Discipline Engineering ManagementDiscipline Engineering Management Piping Design Instrument Engineering Electrical Engineering Civil / Structural Design & Engineering
Leverage our promoter’s resources / associates
Apr 10, 2023 … Excellence in Performance … 35
Safety Services
Conducting / Leading Safety StudiesConducting / Leading Safety Studies HAZOP HAZID HSE Options Selection Safety Layout Reviews Fire Protection Analysis Safety Audits QRA / Consequence Analysis Studies Emergency Escape, Evacuation and Rescue
Analysis
Apr 10, 2023 … Excellence in Performance … 36
Software Packages
Process Simulation PRO/II®: Premier Process Simulation Package VisualFlow®: Flare Network Simulation and Analysis INPLANT®: Utility Systems Simulation and Optimization DATACON®: DCS Data reconciliation for H & M Balance
Heat Exchanger Design & Simulation HTRI®: Premier Heat Exchange Design & Analysis
Package Hextran®: Heat Ex Network Design / Optimization
Life Cycle Asset Information Management Comos® PT: Integrate Engineering Documents & Data
Apr 10, 2023 … Excellence in Performance … 37
Select List of Customers
Apr 10, 2023 … Excellence in Performance … 38
Summary
Quality of life Significant improvements in recent years Accessibility & affordability to goods / services
Type of work Process-centric differentiator Challenging & developmental work
Growth Management participation Economic development in India Strategic & management participation
Apr 10, 2023 … Excellence in Performance … 39
Call to action
Quarterly e-newslettersQuarterly e-newsletters Indian process industry and Spectra
Engage in the technical advisory boardEngage in the technical advisory board In formation phase Interaction & participation on specific issues
Invitation to visit VadodaraInvitation to visit Vadodara Visit Vadodara & its lifestyle Visit Spectra Office
Apr 10, 2023 … Excellence in Performance … 40
Strength and Capabilities
Chemicals & Chemicals & PharmaceuticalsPharmaceuticals
55%55%
Refinery & Refinery & PetrochemicalsPetrochemicals
25%25%
FertilizersFertilizers 5% 5%
Oil & GasOil & Gas10%10%
Others (Metals, Others (Metals, Paints, etc.)Paints, etc.)
5%5%
We cover a wide spectrum of market segments!