CL6001: Semester Project (January-April 2025)
You are a Partner of a Strategy Consulting firm, which has been approached by a large
chemical company to identify new product/s for its future growth and diversified product
portfolio.
The company can invest upto Rs 2,500 crores (including roughly Rs 950 crores as equity
and the balance as debt). It is open to any product which falls broadly in the Chemical
sector, including Polymers, Elastomers, Speciality chemicals, etc.
Having studied present and future availability of raw materials, the company has shortlisted
the following, and the product/s selected should be downstream of one or more these
materials:
1. Benzene
2. Toluene
3. Propylene
4. Butadiene
5. Chlorine
6. Isobutylene
7. Ammonia
8. Methanol
Your mandate is to identify attractive investment opportunities, make a final selection from
a short list and to develop the project upto a stage at which the company can take a final
investment decision for implementation. The product/s so selected should enable the
company to set up a plant of internationally economic size, which would yield attractive
returns. It could come up anywhere in India.
Your report should cover the following:
1. The process used to identify potential candidates (opportunities)
2. Process of initial screening of these, describing all the short listed products and
explaining, with calculations, how the boundary condition of investment of Rs 2,500
crores has been followed
3. Final shortlist of two or more potential candidates (you can have a single product or
multiple products within the overall cost limit)
4. How will you evaluate each of these? Describe the criteria and process
5. Draw a well-labelled and neat Process Flow Diagram for the selected product(s) and
corresponding process(s). Refer to standard PFD developing norms for the same.
Including important process parameters (temperature/ pressure/ conversion values,
desired purity, number of stages, relevant MoC if any, etc) and important equipment
(reactor: type/ distillation column: type/ flash/ compressors, etc) would be
considered as bonus.
6. How will you develop the project for the finally selected chemical (technology, raw
material tie-up, location, market assessment, etc)? All assumptions, especially
those related to prices and capital cost, must be clearly stated and explained with
basis. You may use the PFD generated to identify the equipment cost and then use
process economics norms to find the capital cost and other costs.
7. Provide a broad financial feasibility study for this project, to take a "Go or No Go"
decision by the conglomerate. You are free to make any reasonable assumptions,
which should be clearly stated, with basis.
8. Any relevant recommendations on the implementation of this project.
There would be two project progress meets (one-on-one) with an allotted professor/
alumnus before the final presentation. The dates and time-slots will be conveyed soon. You
are supposed to submit a 2- page summary for each progress meet. Summary doc format
and other details will be shared later. The first progress meet (some time in February)
should reflect your progress on the first 4 points mentioned above.
Please get started as soon as possible.