market analysis of surfactnats

7/29/2019 Market Analysis of Surfactnats

1/63

1

MARKET ANALYSIS OF SURFACTNATS

STERLING AUXILIARIES PVT. LTD.

(MUMBAI REGION)

Submitted By

PRANAV D. PARIKH

Under the guidance of

PROF. VRUSHALI BAGAL

A Project submitted in part completion of

PGDM to the

CHETANAS INSTITUTE OF MANAGEMENT AND

RESEARCH

BANDRA (EAST), MUMBAI-400057


2/63

2

ACKNOWLEDGEMENT

Completion of a project is a milestone in a students life.Written words have an unfortunate tendency to degenerategenuine gratitude into a stilted formality. However, writtencommunication is the only way to record onesthankfulness for prosperity. I take the opportunity toexpress my profound appreciation for everyone who hasdirectly or indirectly helped me in the successfulcompletion of my project.I would like to thank my project guide Mr. Ajit Parekh

(Director at Sterling Auxiliaries Pvt. Ltd.) for his excellentsupport and providing related information & guidance forthe project.I would also express my sincere thanks to my collegementorProf. Vrushali Bagal for her timely advices.Lastly, I would thank my family members and colleaguesfor their invaluable inputs in making this project report.

This project would not be completed without all their ablesupport and guidance.


3/63

3

CERTIFICATE FROM CIMR


4/63

4

CERTIFICATE FROM COMPANY


5/63

5

EXECUIVE SUMMARY

The research below has an objective to understand current & future

requirements of surfactants and to find new areas of business for SterlingAuxiliaries Pvt. Ltd. it also includes te applications of surfactants, new areasof development, volume of surfactant used.,market competition, etc.

The findindsof the research say that the world market of surfactants reachedUS$24.33 billion in 2009, nearly 2% up from the year 2008. The steadygrowth achieved during 2005-2008 was hit by the global economic recessiontriggered by the financial crisis. The impact of this crisis reduced chemicalindustry growth globally. On the other hand, the current relatively low crudeoil price could be a potential benefit to surfactant producers, as the drop in

feedstock prices will lead to increase in the relative profit margin.As per thecondition of global economy, the surfactant market value is expected togrow by 2.8% this year through 2012. The market will experience quitehealthy growth in next two years in the forecast and the growth by 3.5-4%can be expected thereafter.

The report examines the current products and application areas. It alsooutlines the competition landscape, evaluates market chances and risks adanticipates future trends based on a series of influence factors.


6/63

6

Outline of the report

The report is presented in five chapters. Chapter one introduces to the profileof Sterling Auxiliaries Pvt. Ltd.- its history, functions, product range,industries catered, its customers, etc. Chapterones subpart also goes on todefine surfactants and the objective to the research.

Chapter two, talks about the literature review, which includes the surfactantproduct types, Asias picture being the leader in surfactant market and eventhe global scenario of the surfactant market as a whole (as of 2010). It alsotalks about new developments in surfactants, fluorosurfactants, surgar-basedsurfactants. Chapter three gives the list of companies and their respectiveindustries, visited; taken as a sample for the research. Chapter four gives thedetails about the research methodology, nature of the research, tools usedand the sources of data collection.Lastly, Chapter five gives details about the

results of the research. It includes the outcome, recommendations forSterling Auxiliaries Pvt. Ltd. and the limitations of the research.


7/63

7

CONTENT

SR.NO CHAPTER PAGES

1 INTRODUCTION 7-9

1.1 Company Profile 7-8

1.2 Definition and Purpose of the Project 9

2 REVIEW OF LITERATURE 10-30

2.1 Surfactant Product Types 10-12

2.2 Role of Surfactants 12-13

2.3 New Surfactant Developments 14

2.4 Alkyl Phenol-free Surfactants 14-162.5 Fluorosurfactants 16-23

2.6 Sugar Based Surfactants 23-25

2.7 Asia as a Market Leader 26-27

2.8 Global Surfactant Market 27-30

3 REPORT O PRESENT PROJECT 31

4 RESEARCH METHODOLOGY 32-50

4.1 Definition 32-33

4.2 Characteristics of research 33-36

4.3 Classification of Data 37-50

5 RESULTS AND INTERPRETATIONS 51-57

5.1 Outcome of In-depth Interview 51-54

5.2 Strengths and Weaknesses of SAPL 55

5.3 Recommendations 55-56

5.4 Limitations 57

APPENDIX

BIBLIOGRAPHY


8/63

8

CHAPTER 1. INTRODUCTION

1.1 Company Profile

STERLING AUXILIARIES PVT LTD (SAPL)

Vision-Sterling Auxiliaries Pvt. Ltd. ranks number three in the Indiansurfactant market. Hence, the companys vision is to be number one in theIndian market and Asian Market.

Mission- Sterlings mission is to excel in specialty chemicals-surfactants,produce more environment friendly products and delight its customers byprompt services and fast delivery.

History

Incorporated in the year 1984, Sterling Auxiliaries Pvt. Ltd. has grown tobecome one of the modern and leading Producer of Specialty Chemicals inIndia. The company started manufacturing activity in May 1984.Ever since,a wide range of product have been manufactured and marketed successfully.

Background

Manufacturing facility is dedicated to the production of Ethylene Oxidecondensates and Propylene Oxide condensates, producing Emulsifiers andsurfactants for varied industries like Metal Finishing, Agro Industries,Textile Industries, Leather chemicals, Pharma, Oil refineries and manymore. A company having installed capacity of over 40, 000 MT. per annum.

The company has a most modern and sophisticated EO/PO processing plant.Companys confidence is boosted by customers like CLARIANT, CRODA(ICI), COGNIS, BASF & CIBA etc. With a modern sophisticatedMachinery, well equipped R&D and ethical aggressive marketing thecompany wishes to attain leadership in its area.

Products range

SURFACTANTS & EMULSIFIERS

ALKYL ALKANOAMINES

ALKANOLAMINES


9/63

9

GLYCOL ETHERS

PLASTICS ADDITIVES

MORPHOLINE DERIVATIVES , etc

Industries Catered

TEXTILE AUXILIARIES

AGRO PESTICIDE INDUSTRY

GAS TREATING

CONSTRUCTIONS

PAINTS PIGMENTS / Emulsion Polymer & INK INDUSTRIES

PERFUMERY INDUSTRIES

PHARMA & PERSONAL CARE

ELECTROPLATING & METAL TREATMENT

HOME CARE & TOILETRIES

PULP & PAPER

PETROLIUM, OIL FIELD & LUBRICUNT

MINING & EXPLOSIVE

LEATHER AUXILIARIES
http://www.sterlingauxiliaries.com/range/Plastic%20Additives.htmlhttp://www.sterlingauxiliaries.com/range/Plastic%20Additives.html


10/63

10

POULTRY

WATER TREATMENT

FERTILIZER ADDITIVES

Sales figures- Sterling had a turn over of Rs.250crores in the fiscal year2009-2010. However 10years back its annual turnover was just Rs.5crores.

1.2 Definition and purpose of the project

Surfactant or a wetting agent is a substance capable of reducing the surfacetension of a liquid in which it is dissolved. Surfactant has vast applicationsin many industries such as Agro, Pharma, Textile, etc. Surfactant market isfacing rising costs, a growing emphasis on sustainability and greater demandfor multi-functionality.

Hence there are lots of competitors both nationally as well as internationallycompeting in terms of price, quality, variants (type), customer service, leadtime, etc.surfactants have been affected strongly by the changing regulatoryenvironment and the globalization and consolidation the industry has been

experiencing. However, as demand for higher performance increases,interest in more complex anionic surfactants is growing.

Customers demand very high levels of customer service and technicalsupport. For many industrial and military applications, extensive testing isrequired to demonstrate the performance and benefits of new additives.

Other challenges, such as growing environmental concerns over issues ofbiodegradability, pollution control in manufacturing processes, andconsumer desire for green ingredients and products, introduce more

uncertainty into the market.


11/63

11

The Objective of Research / Study is understanding current & future

requirements of surfactants and to find new areas of business for

Sterling Auxiliaries Pvt. Ltd. (i.e. SAPL)

The secondary objectives are to

a) Applications of surfactantsb) Usage of surfactants on basis of volumec) Competitors in surfactant market

CHAPTER 2. REVIEW OF LITERATURE

2.1 Surfactant Product Types

Surfactants are classified by their ionic (electrical charge) properties inwater:

Surfactant Type Ionic ChargeAnionic Negative

Nonionic No charge

Cationic Positive

Amphoteric Positive/Negative

Conventional Surfactant Products by Type

The primary function of a surfactant is to enhance the performanceproperties of water- based formulations composed of a range of ingredients

such as other surfactants, solvents, thickeners, alkalis/ salts, chelating agents,foamers/ de-foamers and fragrances. They are grouped by their ionic charge.

Anionic Surfactants Alkylbenzene sulfonatesdetergents Fatty acidssoaps Sulfosuccinateswetting agents Lauryl sulfatesfoaming agents


12/63

12

LignosulfonatesdispersantsAnionic surfactants are the largest group accounting for approximately 40%of world production. These products exhibit superior wetting andemulsifying properties and tend to be higher-foaming materials.

Nonionic Surfactants

Alkylphenol ethoxylates Alkanolamides Polyglucosides Sorbitan estersAlcohol ethoxylates Fatty amine ethoxylates Sucrose esters

Nonionic surfactants are the second largest group by volume at about 35%.Demand for these sugar-based products is escalating due to their lowtoxicity.

Cationic Surfactants

Imidazolines Morpholines Betaines Quaternary ammonium compoundsPyridenes

Cationics typically have excellent antibacterial properties, provide goodcorrosion protection and can be good demulsifiers.

Amphoteric SurfactantsImidozoline derivatives,Quaternary ammonium compounds,Betaines Phosphatides,Amine condensates, etc

Amphoterics can behave as a cat ion or anion depending on pH. Thesesurfactants are mild and are increasingly used in personal care products.

The major categories of surfactants used in household detergents are:

Anionic

Linear alkylbenzene sulfonates (modified)Alcohol ether sulfates

Alcohol sulfates

Nonionic

Alcohol ethoxylates

CationicFatty nitrogen quaternaries (fabric softeners)

Major producers, in addition to others listed in this study are:-Proctor & Gamble (P&G)-Sun Products Corporation


13/63

13

-Stepan.

The usage of surfactants in this major personal care market is:Bar Soaps -20%Liquid Soaps/Body Washes -15%Hair Care -35%Skin Care -20%Other -10%

The types of surfactants in personal care are:Amphoterics -10%Anionics - 55%Nonionics - 5%Cationics - 30%

Major producers of surfactants in this market, in addition to others

listed in this study, are:

Procter & Gamble, Stepan, Cognis, Rhodia, Croda, Lonza, etc

The world surfactant market in 2005 was of recent origin and was aconsideration of the descriptive phase surface-active agent. A surfactant isan organic molecule that encompasses in the same molecule two dissimilarstructural groups - awater soluble and a water insoluble mocity. Thecomposition,solubility, location and relative sizes of the dissimilar groupsdetermine the surface activity of the compound.The term amphipathydenotes the structure of the surfactant in which the existence in a singlemolecular or ion with suitable degree of separation one or more groupswhich have affinity for the phase in which the molecule or ion is dissolvedtogether with one or more groups which antipathetic to the medium.

2.2The Role of Surfactants

The word "surfactant" is a contraction of the phrase "surface active agent,"and it refers to a material that, at low concentrations, is capable of reducingthe surface energy (or surface tension) of a liquid. Surfactants are crucialingredients in paint and coatings applications. If a paint film is to spreaduniformly over a surface, the paint's surface tension must be lower than thesurface energy of the material being coated. These conditions are especiallydifficult to achieve with hard-to-wet, low-energy surfaces such as silicone
http://web.ebscohost.com/ehost/detail?vid=62&hid=105&sid=95d1c0d0-998d-4c81-9d6f-d171288fd645%40sessionmgr114&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#tochttp://web.ebscohost.com/ehost/detail?vid=62&hid=105&sid=95d1c0d0-998d-4c81-9d6f-d171288fd645%40sessionmgr114&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#toc


14/63

14

adhesives, contaminated oily metals and many plastics. When properlyformulated, a surfactant's function is to adapt the surface-tensioncharacteristics so that these conditions are met.

Surfactants concentrate at the interface between a liquid and anothersubstance. Their basic chemical structure is that of an amphipathic molecule,

which is an organic compound made up of two groups. For aqueous-basedsystems, one of these groups is polar and water-soluble (hydrophilic) and theother is nonpolar and water-insoluble (hydrophobic). In the case ofnonaqueous systems, one group is oil-soluble (oleophilic) and the othergroup is oil-insoluble (oleophobic). Surfactant molecules can contain avariety of functional groups that exhibit different solubility characteristics.When a surfactant is added to a liquid, the insoluble group tends to be

pushed out of the liquid, while the soluble group is pulled toward the liquid'sbody. These combined actions cause the surfactant to concentrate and orient

at the liquid surface, creating a new surface, and, therefore, a new surfacetension. This phenomenon reduces the overall surface tension of the liquidand allows it to wet, spread and penetrate a variety of surfaces more easily.

Identifying the appropriate concentration of surfactant to achieve this effectin paint or coatings can present a challenge for formulators. Excesssurfactant will not enhance performance because surface tension cannot beimproved beyond a critical point. Instead, the likelihood of foaming, greatercost and difficulty with re-coatability become potential concerns. A supplierwith knowledge of phase ratios, solubility and formulating techniques as

they relate to specific surfactant systems can assist users in determining theproper concentration of surfactant for their individual applications.

Surfactants have a characteristic molecularstructure incorporating a water-loving hydrophilic part and an oil-loving lipophilic (hydrophobic) part. Dueto their amphiphilic nature, surfactants tend to accumulate at the air/waterinterface and reduce both surface and interfacial tension at lowconcentrations.

Conventional surfactants have a hydrocarbon tail (hydrophobic part)connected to a polar or ionic head (hydrophilic part). In contrast, a Geminisurfactant has two hydrophobes and two hydrophiles on the same molecule.Half of the Gemini surfactant, consisting of one hydrophile and onehydrophobe, is connected to a spacer, which in turn is connected to the otheridentical half of the molecule forming a Gemini structure (Figure 2). Due totheir unique molecular structure, Gemini surfactants are typically orders ofmagnitude more surface active than the corresponding conventionalsurfactants. Acetylenic-diol-based Gemini surfactants (2,4,7,9-tetramethyl-


15/63

15

5-decyne-4-7-diol and its ethoxylates) are widely used in architecturalapplications for wetting and foam control.

The conversion of solvent-based coatings to water-based systems haspresented the additive manufacturer with a variety of challenges. Typicalsurface tensions of solvent-based systems are in the 25 to 35 mN/m range,mostly due to the solvents used in these systems. Water-based coatings, onthe other hand, typically have surface tensions of 50 mN/m or higher,

primarily due to the high surface tension of water at 72 mN/m. Whenpainting a substrate with a surface energy of 35-45 mN/m with a water-based system, reduction in surface tension of the coating must occur.Spontaneous wetting of a surface can only occur when the surface tension ofthe liquid is lower than the surface energy of the substrate. To accomplishthis, surfactants or wetting agents are commonly used in water-based coatingapplications.

2.3New Surfactant Development

Additives are used in architectural paints to not only wet out pigments andsubstrates but also to help with foam control, durability, block resistance,color development, wash ability or scrub resistance, and to help lowerVOCs. A new, APE-free surfactant has been developed to improve these

properties in a cost-effective manner while helping tominimize the VOC content of the final formulation

The choice of wetting agents used in architectural coatings can have asignificant impact when formulating low- to zero-VOC paints. A new,environmentally friendly, APE-free surfactant has been developed to assistin the formulation of these coatings while offering improved performance

properties over conventional APE containing surfactants. E2010 surfactantoffers efficient wetting of titanium dioxide during grinding, improvedfreeze-thaw and viscosity stability in the formulated paint, improved foam

control, better scrub resistance, and improved flow and leveling, all whilecontributing no additional VOCs to the paint formulation.

2.4Alkyl Phenol-Free Surfactants

The new surfactants are environmentally compatible, exhibiting effectiveperformance during polymerization and post-polymerization stabilization.


16/63

16

These liquid surfactants meet demanding physicochemical properties,regulatory compliance and performancerequirements. They exhibit low freezing temperatures, excellent watermiscibility, minimum gel phase formation and low viscosity at high solidscontent.The new surfactants are clear, high-solid liquids at room temperature and areeasy to handle and very effective during polymerization, providing overalllatex stability. This paper focuses on their chemical and physical propertiesas well as on their performance in model acrylic formulations forarchitectural coatings.

Earlier generations of nonionic surfactants as well as the new surfactantsintroduced in this paper, were developed in response to increasing globalenvironmental protection regulations and recommendations to phase out theuse of Alkyl Phenol Ethoxylates (APEs). The two new high-HLB nonionic

surfactants introduced in this paper, Disponil AFX 4061 and Disponil AFX4070, have been designed to meet environmental requirements while

providing effective performance in emulsion polymerization.Also, they are very effective as post-polymerization latex stabilizers orsurfactant additives for coating and adhesive formulations.

Similar to previous generations, the introduction of these new emulsifiersresponds to the emulsion polymerization and coatings industry demands forecologically acceptable and effective non-ionic emulsion Performance inEmulsion Polymerization. The mechanism of emulsion polymerization, aswell as the role of surfactants has been discussed in a number of

publications. Extensive surfactant screening in model formulations hasshown that the new emulsifiers are very effective in acrylic formulations.

The results demonstrate the role of an effective surfactant combination inparticle size control, coagulum content and overall stabilization.All latexes exhibited desirable small particle sizes, low coagulum,mechanical stability and freeze thaw stability. The electrostatic stabilitywas obtained by post adding a 0.25% of either Disponil AFX 4061 or

Disponil AFX 4070.

Although there is an increasing tendency to replace alkyl phenol-based (AP)with alkyl phenol-free (AP-free), surfactants, octyl phenol-40 (OP-40) still isextensively used in many different coating applications in North America.Results have show remarkable performance similarities between OP-40 and

both Disponil AFX 4061 and Disponil AFX 4070. These results clearlyshow that both surfactants are suitable replacements for OP-40.


17/63

17

Emulsion polymer and coating producers are increasing their efforts toreplace OP-40 and similar AP-based surfactants in a wide spectrum oflatexes and coatings.

Some of the most important drivers of these efforts are a new NorthAmerican wave of environmental awareness and effortsto increase sustainability, Canadian regulatory pressures, older Europeanregulations, and recommendations and trends to globalize formulations.Surfactant post addition is often necessary to stabilize latex formulationswith high inorganic filler content such as for architectural and trafficcoatings, as well as paper and adhesive coatings. A fundamental property ofthe surfactant molecules is their ability to orient and adsorb at the interfaces.

In latex systems, most of the surfactant is adsorbed at the interface betweenthe particles and the water. This adsorption is a thermodynamic process

favored by a decrease in the overall free energy of the system. The adsorbedlayer of surfactant molecules is essential for the stabilization of latexesduring polymerization and during post polymerization processes.It is well known that the colloidal stabilization depends on the interactions ofattractive and repulsive forces between the particles. It is also accepted thatelectrostatic repulsion stabilization and steric or spatial stabilization are thetwo most important barriers to flocculation. The addition of inorganic fillerscontaining divalent metallic ions such as calcium, magnesium and zinc,

produces rapid flocculation by disrupting the electrical double layersurrounding the polymer particles. This reduces the electrostatic repulsions

between the adsorbed anionic surfactant molecules typically used during theemulsion polymerization process.

A pragmatic remedy to restore stability is the addition of high-HLBsurfactants, specifically polyethoxylated nonionic emulsifiers. Thehydrophilic polyethoxylated chain provides steric stabilization by orientingand extending towards the water phase. This prevents the particles fromentry into the effective space of mutual attraction. Also, it has been proposedthat the effectiveness of this type of stabilization is due to the hydrogen bond

interactions and high-localized viscosity of the hydrated polyethoxylatedchain, which acts as a protective shield preventing flocculation.Nonionicsurfactants are characterized by a low amount of surfactant moleculesadsorbed at the interfaces and high cross-sectional areas at the interfaces.These properties make them ideal as post polymerization stabilizers.


18/63

18

2.5 Fluorosurfactants (applications in Low-VOC Coatings)

Fluorosurfactants have been used to address surface tension-relatedperformance problems in coatings. New research demonstrates thattraditional methods of using fluorosurfactants limited their effectiveness insolving issues facing today's low-VOC architectural coating formulationneeds. Here we discuss a new theory on the use of fluorosurfactants. basedon seven years of research of architectural coating applications. Themulti-functional properties provided by fluorosurfactants include anti-crater,improved leveling, reduced foaming, decreased block, open-time extension,oil repellency and dirt pickup-resistance. Applications and formulationconsiderations presented are from actual case studies.

The worldwide coatings industry has been pursuingthe development oi' low-VOC and VOC-free architectural coatings to meet new government

regulations, and to protect the environment, applicators and buildingoccupants. In these coatings, reduced VOC brought many challenges inresin system and formulation design.Traditional solvents in latex coatings serve as a coalescent aid for firm

formation, open-time agent to prevent over-brush coating defects, and anti-freeze agent to prevent instability in freeze-thaw cycles, in addition to these

properties, solvents also impact a latex coating's wettability. foaming,blocking and leveling.

Many functional additives have been developed to address these issues inlow-VOC coatings. Fluorosurfactant use in coatings dates back to the197()s.- They were used as wetting agents and to improve leveling for manyyears in various coatings systems.' In the past decade, more demanding

performance requirements were expected from coatings users. In addition,the trend to tower solvent use levels was creating new challenges for thecoatings chemist.Fluorosurfactants are useful additives in solving low-VOC coating-related problems in architectural coatings, such as anti-craler,anti-block and shorter open times in addition to their traditional role aswetting agents.

Telomere-based fluorosurfactants contain various functional groups. Theyhave unique properties in significantly reducing surface tension in allaqueous, solvent and neat systems. They are air-liquid interface active,

providing wetting, rewet and oil repellency while meeting surface tensionneeds in coatings. They have been used in solving low-VOC formulation

problems mentioned above.


19/63

19

Until very recently, fluorosurfactants were used to address formulationproblems near the end of the coating development cycle. Our recent researchand practice have demonstrated that fluorosurfactants are most useful andcost effective due to the multiple functions they provide in formulating alow- or VOC-free architectural coating;. This can reduce otheringredients and create high-performance paints by minimizing the use ofother coating additives, such as wetting agents, leveling aids, anti-blockadditives and open-lime extenders. Oil repellency and other functions thatfluorosurfactants provide have also made them attractive to formulators indeveloping dirt pickup-resistance exterior paints.

Surface Tension Reduction

Today's diversified coating substrates and waterborne low-VOC coatingsystems, surface tension reduction is essential for application and good filmformation. High surface tension will cause paint film defects such as craters,fish eyes, pinholes, orange peel and poor thin film control. Telomere-basedfluorosurfactants are very powerful at very low concentration in reducingsurface tension. The use rate of fluorosurfactants is very low compared lohydrocarbon and silicone surfactants. This allows the coating lo use verysmall amounts and still achieve wetting and leveling, with reduced foamto achieve defect-free coatings on conventional and hard-to-wet surfaces,such as plastics. Compared to hydrocarbon and silicone-based surfactants,fluorosurfactants have the most power to reduce surface tension.

While many as foam generators perceive fluorosurfactants, certain types of

fluorosurfactants act as defoamers in coatings when used at low levels. Thegrades we recommend for most architectural paint applications decreasefoam when the formulation also minimizes the use of other foam-causingsurfactants. In most cases, when fluorosurfactants are used other debasingagent usage can be decreased or eliminated. Fluorosurfactants also worksynergistically with hydrocarbon surfactants in resin synthesis duringemulsion polymerization. Their main functions are stabilizing the emulsion,rolling particle size and allowing the reduction of hydrocarbon emulsifier


20/63

20

surfactants. Reducing hydrocarbon surfactants can also help reduce foamingin the paint formulation. After the polymerization fluorosurfactants arecarried over to the final coating formulation to provide the other properties

provided by fluorosurfactants.

Scientific research shows evidence thatfluorosurfactants are mosteffective when incorporated early during the coatings system designto allow formulators to bail outredundant additives.

The adaptable chemical nature of fluorosurfactants makes these materialsversatile ingredients for a variety of water-based, high-solids and resinsystems. Better wetting, leveling and spreading, especially on soiledsurfaces, can help eliminate such coating defects as orange peel, crateringand picture framing.

Wetting and leveling are the two primary factors that determine the ease ofapplication and quality of coverage of a paint or coating. They also predictthe coating's reaction to its substrate and, ultimately, its long-term wear and

performance.

Because of their effectiveness and stability, fluorochemical surfactants are

used as additives to improve the wetting and leveling characteristics of manyindustrial, commercial and consumer products, including paint, coatings,varnishes, floor polishes, cleaners, adhesives and inks. A variety ofspecialized fluorosurfactant formulations offer flexibility for aqueous andnon-aqueous systems, and they can provide significant performance benefitsover conventional hydrocarbon and silicone surfactants.

Why are Fluorosurfactants Different?

Based on their chemical composition, surfactants can be divided into three

classes: hydrocarbons, silicones and fluorochemicals. Fluorochemicalsurfactants are usually more effective than silicones, which, in turn, are moreeffective than hydrocarbons in reducing the surface tension in water-basedsystems. As a result, fluorosurfactants aid in the wetting of a greater varietyof materials, including hard-to-wet surfaces such as plastics and oily metals.

In addition, only fluorosurfactants can reduce the surface tension of solvent-or liquid-resin systems. The stability of today's fluorochemical surfactants


21/63

21

also sets them apart from conventional hydrocarbon and silicone surfactants,enabling them to function in harsh environments, including strongly acidic,alkaline, oxidative and high-temperature systems.

One of the most effective ways of manufacturing fluorochemicals -- andfluorosurfactants -- is through a process called electrochemical fluorination,

in which the hydrogen atoms on an organic molecule are electrochemicallyremoved and replaced with fluorine atoms. The resulting carbon-fluorine

bonds are short, strong and stable, with very low polarity. For that reason,per fluorinated segments of molecules do not associate with anything butthemselves, and, in turn, render the fluorosurfactants hydrophobic and oleo

phobic. Organic reagents do not affect them, and they are chemically,thermally and oxidative stable.

In contrast, the comparative weakness of the carbon-chlorine bond means

that it is susceptible to degradation reactions. One of the consequences ofthis property is ozone depletion in the earth's atmosphere. Despite thesimilarities in their chemical structure, fluorocarbons do not react in thismanner because they are stable, even under demanding conditions.

Like conventional surfactants, fluorochemical surfactants lower the surfacetension of coatings formulations to improve leveling and wettingcharacteristics. Although fluorosurfactants initially were used primarily inaqueous systems, later development led to a family of materials that arehighly surface active in a variety of organic liquids. Today, a range of

specialized fluorosurfactant products is effective at lowering the surfacetension of both aqueous and non-aqueous systems.

In general, fluorosurfactants are efficient in reducing surface tension tolevels that are not attainable with hydrocarbon or silicone surfactants. Forexample, surface tension measurements of 15 to 20 dynes per centimeter can

be obtained with a fluorochemical concentration as low as 0.01% to 0.10%.In contrast, a typical hydrocarbon surfactant at a concentration of 0.1% ormore will lower the surface tension of an aqueous system no lower than 25dynes per centimeter.

A fluorosurfactant's ability to reduce surface tension over the seeminglysmall margin from 25 to 20 dynes per centimeter can make the difference

between poor and excellent wetting. Lower surface tension also reduces theforce required to move liquids through small pore spaces, allowing liquids to

penetrate surfaces more effectively.


22/63

22

The performance of fluorosurfactants is related to the structure of thefluorosurfactant molecule, with its stable, insoluble fluorocarbon tail(hydrophobic and oleo phobic) at one end and its solubilizing group(hydrophilic or organophilic) at the other.

The molecule's structure can be modified to provide exceptional thermal,

chemical and electrical stability, as well as very low solubility and extremelylow surface tension. The fluorochemical tail is primarily responsible forreducing surface tension and reflects the major differences betweenfluorosurfactants and conventional hydrocarbon and silicone surfactants. Itconsists of the stable per fluorocarbon group, which provides resistance tothermal and chemical attack and can be modified in length and structure tomeet the needs of specific applications and chemistries.

The head group represents the solubilizing portion of the molecule. In the

earliest fluorosurfactants, this group was a water-soluble moiety; today italso can be designed to be oil-soluble for use in non-aqueous systems. Inaddition, the chemical nature of X can be altered to give anionic, cationic,nonionic or amphoteric surfactants. By varying the solubilizing groups,fluorosurfactants have been designed for high surface activity in wideranging environments, including many that would degrade hydrocarbon orsilicone surfactants.

Beyond Wetting

The ability of a liquid to wet a surface does not necessarily mean it will levelon that surface. A number of factors, including surface tension and viscosity,can influence leveling. When a coating contains components with differentsurface tensions and dries from a surface at different rates (floor polish, forexample), a surface-tension gradient can form. Surface-tension gradients atthe interface between the liquid and air are the primary causes of surfacedefects.

Fluorosurfactants improve leveling by reducing or eliminating thesegradients during the evaporation phase, resulting in a more uniform surface.Figure 6 illustrates the mechanism that can cause surface-tension gradients,giving a cratered appearance to a painted or coated substrate.

Fluorosurfactants can offer other benefits that are not directly related tobetter wetting. For example, in moisture-cure urethane coatings whereunsightly bubbles are often a problem, a fluorochemical surfactant can be


23/63

23

used to lower surface tension so any CO2 bubbles that might be present areso mall and well-dispersed that they are barely visible.

Figure 7 summarizes some important properties of fluorosurfactants andcompares them to the properties of other surfactants. Although their initialcost is higher than conventional surfactants, actual cost in industrial

applications can be comparable to the others because fluorosurfactants areeffective at low concentrations.

Customized Chemistry

A variety of fluorosurfactants are available for use in specific chemicalsystems to meet the demands of individual coating applications. The bestfluorosurfactant for a particular formulation depends on the degree ofsolubility in the coating media. For example, an anionic fluorosurfactant

based on potassium fluoroalkyl carboxylate can enhance the wetting andleveling properties of floor-polish emulsions, as well as cleaners and othersystems. The surfactant is especially useful in alkaline-cleaning formulationsdue to its chemical stability.

An anionic fluorosurfactant based on ammonium perfluoroalkyl sulfonate isuseful in clear floor-polish emulsions. At a concentration of 200 parts permillion, this surfactant increases the leveling and wetting ability of thecoating to eliminate edge pull and coating defects that typically occur when

polish is applied to a contaminated surface. Another fluoro-chemical, a

cationic, is a system of fluorinated alkyl quaternary ammonium iodide,which provides surface-tension reduction in acid or neutral solutions.

For manufacturing fluoropolymer coatings, an anionic solution ofammonium perfluoro-octanate in water serves as an emulsifying agent andstabilizer to prevent agglomeration and sedimentation of particles in thedispersion. An added benefit of this fluorosurfactant is that it can bereclaimed and recycled from the fluoropolymer-manufacturing process.Recycling the surfactant decreases fluorochemical costs and reduces waste.

In addition to their wetting properties, fluorosurfactant additives are used incoatings and ink formulations because of their ability to eliminate leveling

problems and surface defects, including cratering, crawling, orange peel,picture framing and pigment floating.

Nonionic fluorosurfactants (known as fluoroaliphatic polymeric esters) havegood surface activity and compatibility with a variety of solvent-based, high-solids and water-reducible coating systems. In some specialized


24/63

24

applications, a combination of fluorochemical surfactants and a suitablehydrocarbon surfactant can result in a synergistic effect.

For example, the fluorosurfactant contributes to a reduction in surfacetension, while the hydrocarbon surfactant helps reduce interfacial tension.The result can be a system that has enhanced wetting and spreading

properties on difficult surfaces.

Fluorosurfactants have a natural tendency to foam, which can be asignificant advantage in some applications. Adding the fluorosurfactant asthe last component of a coating or paint formulation, by minimizingmechanical action and by using defoamers when feasible, can controlexcessive foaming.

In systems in which multiple coating is difficult, this problem can beovercome by gradually increasing the concentration of surfactant in theupper coating layers by under baking the layer to be recoated and by usingdifferent types of fluorosurfactants in successive coating layers, such asnonionic surfactants in the bottom layers and highly effective anionicsurfactants in the top layer.

Based upon the studies presented above, fluorosurfactants are very useful,multi-functional additives for low-VOC architectural coating formulations.They provide wetting, leveling, defoaming anti-block and open-timeextension. Although they have been traditionally used to correct

performance near the end of formulation process, scientific research showsmore and more evidence that fluorosurfactants are most effective whenincorporated early during the coating system design to allow formulators totake out unnecessary (redundant) additives to achieve best results.This is particularly important in formulating low-VOC coatings and for

reducing dirt-pickup in exterior paints.

2.6 Sugar-based surfactants

Growing demand for alkyl polygluco-side (APG) -- a non-ionic surfactantmade from vegetable oils and starch is driving new developments andincreasing marketing for other sugar-based surfactants. These products couldreplace traditional petroleum and even other natural oils-based surfactants.

Natural surfactants continue to gain traction, especially in the mass-marketproduct categories such as personal care, laundry detergent and home carecleaning products. Growth in naturally derived specialty surfactants, which


25/63

25

account for only 10% of the overall $600m (413m) global specialtysurfactants market, is expected to grow by 4% yearly through 2013, led byAPG, according to Anna Ibbotson, industry manager for chemicals andmaterials at US consultancy Kline & Co.

Germany-based Cognis, now owned by compatriot firm BASF, is the

world's largest APG surfactant producer. Other suppliers include Europeanchemical firms Clariant, Croda and SEPPIC, and South Korea-based LGHousehold & Health Care.

Cognis expanded its APG capacity last year with a new 25,000 tonne/yearplant in Jinshan, China, citing increased demand as the major driver for theinvestment. The chemical business division of LG Household & Health Carealso expanded its APG plant in Onsan, South Korea, in January because ofhigh demand. It did not disclose the plant's capacity.

"The recent expansion is our second, following the first expansion projectcompleted in 2009," the company said in a statement. "We started APG

production in 2000 and have been continuously expanding our capacitybecause of high demand for environmentally friendly surfactants."

APG surfactants initially were developed for home care and body washapplications, but have been expanded to facial cleansing lotions, shampoos,oral care products, wipes, laundry detergents, hard surface cleaners andindustrial and institutional cleaning applications, according to Cognis.

Growing Sugar Surfactants

US-based Colonial Chemical has been producing sugar surfactants madefrom corn syrup and coconut oil since 2002. The company sells the productsworldwide under the brands Suga and PolySuga in drum and bulk quantitiesfor various personal care, household and industrial cleaners and even oilfield applications, says Colonial Chemical president David Anderson.

"The exact pounds sold are proprietary. However, the volume is significant

now, and growing each year in sales and acceptance by the market," saysAnderson. "Our goal is to assist the formulating chemists who have beenusing traditional sodium lauryl sulfate (SLS) or sodium lauryl ether sulfate(SLES) products to consider using our Suga and PolySuga products."

The sugar surfactants outperform traditional surfactants such as SLES andSLS in terms of mildness, solubility of essential oils arid the ability to cleanat lower concentrations, says Anderson. The surfactants also outperform


26/63

26

APGs in terms of higher foam, lower irritation, better solubility and providethickening viscosity when combined with betaines.

"In certain instances, our products are maybe up to 25% more expensivethan regular APGs. However, they outperform APGs by a great deal more,"says Anderson. "Compared to petroleum-derived surfactants, we are also

narrowing the cost gap more every day as the price of oil moves up."

Italian chemical company Lamberti says APG esters offer significantadvantages as well, such as low surface tension and lower foamingcompared with APGs.

The company patented the synthesis of esters of APG in 1987, and sincethen has been heavily involved in developing sugar-based surfactantderivatives, says Don Leming, business development manager ofagrochemicals at Pennsylvania-based Larnberti USA.

The company notes several APG esters are already commercially availableand others are still in development.

"Our Eucarol AGE (alkyl glucose ester) shows outstanding mildness and isable to reduce the irritation level of liquid soaps, shampoos and detergents,"says Leming. "The economics of APGs and APG esters is very similar whenconsidering both cost and usage rates.

The major challenge is to persuade surfactant formulators to move fromusing standard and quite cheap commodities into the more environment-friendly and very much milder compounds."Colonial Chemical's Andersonagrees that it is not easy for formulators to break old habits in usingtraditional surfactants. "The industry has been stuck on sulfates and ethersulfate technology for over 60 years largely because they are stillinexpensive and easy to use," says Anderson. "However, sulfates areirritating to eyes and skin and may utilize some very questionablemanufacturing processes in regards to safety. Getting our customers familiarwith sugar surfactants and having time to work with them is the challenge."

New Alternative Developments-

Despite the challenges, the immense potential profits to gain within the28.6bn lb/year (12.9m tonnes/year) global surfactants market is attractingseveral newcomers offering alternative green materials.France-basedWheatOleo, a joint venture formed last year between Belgian oleo-chemicalcompany Oleon and France-based agro-businesses consortium ARD, is
http://web.ebscohost.com/ehost/detail?vid=4&hid=105&sid=31b5bfe6-3f8c-4267-b24b-5b6b080aa524%40sessionmgr112&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#tochttp://web.ebscohost.com/ehost/detail?vid=4&hid=105&sid=31b5bfe6-3f8c-4267-b24b-5b6b080aa524%40sessionmgr112&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#toc


27/63

27

selling alkyl polypentosides (APPs) surfactants made from combined naturalfatty alcohols and pentose sugars coming from agricultural by-productswheat bran and straw."Competition is fierce with several newcomersknocking at the door. On the other hand, demand from market is growingand there is room for alternative solutions," says WheatOleo businessmanager Philippe Lapeyre.

WheatOleo did not disclose how much it is currently producing, but saysthat it aims to produce several thousand tonnes in the near future. Sales ofAPPs began in 2008 and are now being sold through Oleon and France-

based cosmetic ingredients company So-liance, owned by ARD. No othercompany is producing or marketing APPs, in which ARD holds a strong

patent position, says Lapeyre.

"The sugar part of our surfactant comes from lignocellulose biomass and

therefore does not enter into competition with food compared with glucose-based raw materials," says Lapeyre. "Pentoses derived from wheat bran andstraw also have the main advantage of being very reactive, leading to a lowtemperature process, low polymerization degree and reduced post-treatments.

2.7 Asia as a Market Leader of Surfactants

Posted on April 21, 2011

As per report of Shanghai, of the Eleventh International Conference ofsurfactants and detergents on the understanding, with the level of economicdevelopment and rising personal spending power, Asia has become theworlds largest consumer market, surfactant, and Surfactant investmentworld and new product research and development center. U.S. CAHA Consulting Leader Joel Houston, said the current global

surfactant market has reached 12.7 million tons / year, after the rapidgrowth in recent years, Asia has become the world beyond Europe andthe United States the largest surfactant market share of global sharerose to 32%.

Relative to the already relatively saturated European market, there is still ahuge market potential in Asia, will continue to maintain rapid growth.Houston believes that the smooth regions rapid economic growth,

particularly growth in personal consumption needs to promote theenhancement of surfactant.
http://www.cailun.org/asia-as-a-market-leader-surfactant/http://www.cailun.org/asia-as-a-market-leader-surfactant/


28/63

28

It is understood that China and India is Asias largest consumer marketsurfactant. 2009 total 7.812 million tons of detergents in China, up 9.87%.One output of 6,928,700 tons of synthetic detergent, an increase of 9.31%.Products on the market in India is also an annual average rate of 20% rapidgrowth. Houston said that over the past 10 years, the European detergent productionand profit growth continue to slow down, then included the majormultinational companies look to Asia.

As the linear alkyl benzene (LAB) and many other sets of production plantsin operation, Asia has become the focus of surfactant intermediates

production area, and will be the biggest investment in global surfactantmarket. Houston believes that meet the new low-temperature washing of

environmental low-carbon products, in particular branched-chain functionalgroups of modified products will have a broad market space.

With the technological innovation and industrial expansion of the scale,reduced costs of new products will occupy an important position in futuremarket, the new surfactant intermediates will be the investment destinationin Asia. Especially the Middle East and Southeast Asia, due to the surfactantrich raw material resources, will be the investment in high growth areas. Ciba BASF R & D Center Manager Mao Jianwen said that at present theoverall development of surfactant market good, people focus on theenvironment more conducive to product upgrading. BASF will grasp thedirection of the market, using technology innovation development of theindustry comply with the requirements of surfactant in Asia dedicated to thelocalization of R & D and production.

2.8The Global Surfactant Market (as of 2010)

Developing regions such as Asia-Pacific and Latin America offertremendous market potential, with demand stemming from greaterconsumption of soaps and detergent products.

The most prominent change in the industry has been the switch frompowdered versions to concentrated liquid detergents, gels or single dose


29/63

29

tablets, as well as the technical superiority of these new formulations toefficiently work at lower washing temperatures.

Use of energy-saving, low temperature laundry detergents is an establishedtrend in mature markets, while it is catching on in major developingeconomies on the back of growing ownership of washing machines.Increasing environmental concerns also impact the surfactants market withdemand for oleochemical-based products witnessing robust growth, asagainst petrochemical-derived products.

The global surface-active agents (or surfactants) market is expected to

reach US$16.65 billion in value terms by 2012, as stated by Global

Industry Analysts, Inc. In volume terms, the market is expected to reach

17.8 million tons by 2015.

In West Europe, surfactant overcapacity has been a major issue, and littlechange is expected in the near future, since producers are very reluctant toshut down sulfation and ethoxylation plants. The situation is different inAsia, where nearly half of the 184 sulfation/sulfonation sites are integratedwith detergent producers, and good market growth has supported theiroperations.

Another developing issue is the availability of surfactant intermediates.After a period of tight supply, new capacity for detergent alcohols and

linear alkylbenzene is threatening to create a surplus of intermediates anddrive prices down. Detergent reformulations are already shifting someconsumption from LABS to alcohol derivatives. Changes in the surfactantintermediates market will benefit some surfactant producers and negativelyimpact others.

A few major deals, the disappearance of Albright & Wilson intoRhodia and Huntsman, the spin-off of Cognis by Henkel, and Dow'sacquisition of Union Carbide, have radically changed the competitive arena.Other producers, such as Stepan, have built their global presence throughsmaller deals, acquiring product lines rather than companies.

With few exceptions, surfactant producers are pursuing a higher degree of


30/63

30

integration and are adopting new marketing strategies in order to defend andexpand their positions.

Europe, with a share of 36% in volume terms represents the largest market,followed by US with a share of 32%. Asia Pacific is expected to offer thehighest volume growth potential over the period 2001-2010, with a CAGRhovering around 6.04%, followed by Latin America with a CAGR of 4.4%.Anionic surfactants, accounting for a volume share of over 51%, representsthe largest segment followed by nonionic surfactants.

The market for amphoteric surfactants is expected to register a volumeCAGR of 4.65%, while cationic surfactants is expected to be worth US$3.3

billion in 2013.

The increasing commoditization of the mature North American personal caresurfactants market has compelled participants to think out of the box toretain customers and market shares. Participants need to identify their mainstrengths and rethink strategies to stay afloat. For instance, in the massmarket, cost and economies of scale are vital considerations, whilecompetitors in the specialty market should focus on customized solutionsand innovations. Surfactant producers are expected to concentrate especiallyon high-growth areas such as skin care, ethnic hair care, body washes, andmale grooming products.

As most surfactants markets have been commoditized, buyers have beenable to wield immense bargaining power. 'In such a scenario, consolidationat the surfactants suppliers end can turn the tables and increase their

profitability,' says the analyst of this research service. 'Mergers andacquisitions enhance the product portfolio and thus, can help expand thecustomer base and growth rates.'

Brazil surfactants market is large, diverse and growing. Anionic surfactantsin Brazil have been assuming a growing importance in key applications,

such as agrochemicals formulations, pharmaceutical, oil drilling, and thetraditional soaps and detergents industries. The surfactants industry isgenerally considered complex due to some factors, such as: a broad-rangedefinition of surfactants and its technical definitions, large number ofsuppliers (more than 500 worldwide), numerous products chemistries (morethan 3,500), numerous intermediates and blends. With this, the surfactants

business comprises a range of specialty and commodity products andbusiness, having a several applications and a wide customer-base.


31/63

31

Rising raw material prices, growing concentration of customer base,

increasing environmental concerns, greater breadth of product portfolio

and a need for globalized reach are driving the trend towards

consolidation in the surfactant market.

Industry participants include Akzo Nobel Surfactants, Albright & Wilson(Australia) Limited, Ashland Inc, BASF Performance Chemicals forDetergents and Formulators, Clariant AG, Cognis Deutschland GmbH & CoKG, Croda International Plc, Dai-ichi Kogyo Seiyaku Co., Ltd, DowChemical Company, DuPont, Evonik Industries AG, Henkel KGaA,Huntsman Performance Products, Kao Corporation, Lambent Technologies,Lion Corporation, Nof Corp, Pilot Chemical Company, ProtameenChemicals, Rhodia Novecare, Sanyo Chemical Industries, Sasol Olefins &

Surfactants GmbH, Shell Chemicals, Stepan Company and Toho ChemicalIndustry.

The report titled "Surface Active Agents: A Global Strategic BusinessReport" published by Global Industry Analysts, Inc., offers comprehensiveinsights into the economic fundamentals of the industry, and highlightsmarket drivers, challenges, and trends, in addition to outlining the changingcompetitive landscape. The study emphasizes on demand,

production/supply, and prices to provide an exhaustive analysis of themarket.The report analyzes market data and analytics in volume and value sales forregions such as the United States, Canada, Japan, Europe, Asia-Pacific,Latin America and Rest of World.

The study also analyzes the Surfactants market by the following productsegments: Anionic Surfactants, Nonionic Surfactants, Cationic Surfactants,and Amphoteric Surfactants.


32/63

32

CHAPTER 3.REPORT ON PRESENT PROJECT

The companies visited for this research are as below

Table 3.1

LEATHER

CHEMICALS

PAINTS TEXTILE METAL

FINISHING

COMPETITION OTHERS

BASFASIAN CLARIANT GRAUER &

WEILBRENNTAG PIDILITE

INDOFIL

ICI HUNTSMAN COGNIS GALAXY

SURFACTANTS

MOHINI

ORGANICS

BUCKMANSSHALIMAR ROSSAIRI INDIA GLYCOLS

LTD.VISHWATCHEMICALS

DADIACHEMICALS

BEREGER MIRACHEM LAFFANSPETROCHEMICALSLTD(HUNTSMAN)

DOWCHEMICALS


33/63

33

TOPAZTEXCHEM

BRITACIL

VISEN

The respondents in this research are includes manufacturers of surfactants

and products that require surfactants i.e. experts. Hence, the questionnaire

prepared is very technical in nature. Due to transportation constraints the

companies having offices in Mumbai were targeted and thus the sample

size of 25.

Type of surfactant in use, volumes used, top companies-both foreign anddomestic, change in volumes expected are some of the aspects covered inthe questionnaire.

CHAPTER 4. RESEARCH METHODOLOGY

Research is undertaken within most professions. More than a set ofskills, it is a way of thinking: examining critically the various aspects ofyour professional work. It is a habit of questioning what you do, and asystematic examination of the observed information to find answerswith a view to instituting appropriate changes for a more effective

professional service.

4.1Definition-When you say that you are undertaking a research study to find answersto a question,you are implying that the process;1. is being undertaken within a framework of a set of philosophies (approaches);2. uses procedures, methods and techniques that have been tested fortheir


34/63

34

validity and reliability;3. is designed to be unbiased and objective .

Philosophies means approaches e.g. qualitative, quantitative and theacademicdiscipline in which you have been trained.

Validity means that correct procedures have been applied to findanswers to aquestion.Reliability refers to the quality of a measurement procedure thatprovidesrepeatability and accuracy.

Unbiased and objective means that you have taken each step in an

unbiasedmanner and drawn each conclusion to the best of your ability andwithoutintroducing your own vested interest.(Bias is a deliberate attempt to either conceal or highlight something).

Adherence to the three criteria mentioned above enables the process tobe calledresearch. However, the degree to which these criteria are expected to

be fulfilled varies fromdiscipline to discipline and so the meaning of research differs fromone academic discipline to another. The difference between research andnon-research activity is, in the way we find answers: the process mustmeet certain requirements to be called research. We can identify theserequirements by examining some definitions of research.

The word research is composed of two syllables, re andsearch. re is aprefix meaning again, anew or over again search is a verb meaning toexamine closely and carefully, to test and try, or to probe.

Together they form a noun describing a careful, systematic, patientstudy and investigation in some field of knowledge, undertaken to

establish facts or principles. Research is a structured enquiry thatutilizes acceptable scientific methodology to solve problems and createnew knowledge that is generally applicable.

Scientific methods consist of systematic observation, classification andinterpretation


35/63

35

of data. Although we engage in such process in our daily life, thedifference between ourcasual day- to-day generalisation and the conclusions usuallyrecognized as scientificmethod lies in the degree of formality, rigorousness, verifiability andgeneral validityof latter.

4.2Characteristics of Research

Research is a process of collecting, analyzing and interpretinginformation to answerquestions. But to qualify as research, the process must have certaincharacteristics: it must, as faras possible, be controlled, rigorous, systematic, valid and verifiable,

empirical andcritical.

Controlled- in real life there are many factors that affect an outcome.The concept of control implies that, in exploring causality in relation totwo variables (factors), you set up your study in a way that minimizesthe effects of other factors affecting the relationship. This can beachieved to a large extent in the physical sciences (cookery, bakery), asmost of the research is done in a laboratory.However, in the social sciences (Hospitality and Tourism) it isextremely difficult as research is carried out on issuesrelated to human beings living in society, where such controls are not

possible. Therefore in Hospitality and Tourism, as you cannot controlexternal factors, you attempt to quantify their impact.

Rigorous-you must be scrupulous in ensuring that the proceduresfollowed to find answers to questions are relevant, appropriate andjustified. Again, the degree of rigor varies markedly between thephysical and social sciences and within the social sciences.

Systematic-this implies that the procedure adopted to undertake aninvestigation follow a certain logical sequence. The different stepscannot be taken in a haphazard way. Some procedures must followothers.

Valid and verifiable-this concept implies that whatever you concludeon the basis of your findings is correct and can be verified by you and


36/63

36

others.

Empirical-this means that any conclusion drawn are based upon hardevidence gathered from information collected from real life experiencesor observations.

Critical-critical scrutiny of the procedures used and the methodsemployed is crucialto a research enquiry. The process of investigation must be foolproofand free fromdrawbacks. The process adopted and the procedures used must be ableto withstandcritical scrutiny.For a process to be called research, it is imperative that it has the aboveCharacteristics.

Research can be classified from three perspectives:1. application of research study2. objectives in undertakingthe research3. inquiry mode employed

Application:From the point of view of application, there are two broad categories ofresearch:-pure research and- applied research.Pure research involves developing and testing theories and hypothesesthat are intellectually challenging to the researcher but may or may nothave practical application at the present time or in the future. Theknowledge produced throughpure research is sought in order to add tothe existing body of research methods.

Applied research is done to solve specific, practical questions; forpolicy formulation, administration and understanding of a phenomenon.It can be exploratory, but is usually descriptive. It is almost always doneon the basis of basic research. Applied research can be carried out byacademic or industrial institutions. Often, an academic institution suchas a university will have a specific applied research program funded byan industrial partner interested in that program.


37/63

37

From the viewpoint of objectives, a research can be classified asDescriptive

Exploratory

Causal

Descriptive research attempts to describe systematically a situation,problem, phenomenon, service or programme, or provides informationabout , say, living condition of a community, or describes attitudestowards an issue.

The research done here is a descriptive one, based on the definition

given above.

Correlational research attempts to discover or establish the existence ofa relationship/ interdependence between two or more aspects of a

situation.Causal research attempts to clarify why and how there is a relationship

between two or more aspects of a situation or phenomenon.Exploratory research is undertaken to explore an area where little isknown or to investigate the possibilities of undertaking a particularresearch study (feasibility study/ pilot study).

The research done here is an exploratory research

Inquiry ModeFrom the process adopted to find answer to research questionsthe twoapproachesare:Structured approachUnstructured approach

Structured approach

The structured approach to inquiry is usually classified as quantitative

research.Here everything that forms the research process- objectives, design,sample, and the questions that you plan to ask of respondents- is

predetermined. It is more appropriate to determine the extent of aproblem, issue or phenomenon by quantifying the variation.e.g. how many people have a particular problem? How many peoplehold a particularattitude?


38/63

38

Unstructured approach

The unstructured approach to inquiry is usually classified as qualitativeresearch. This approach allows flexibility in all aspects of the research

process.It is more appropriate to explore the nature of a problem, issueor phenomenon without quantifying it.

Main objective is to describe the variation in a phenomenon, situationor attitude.e,g, description of an observed situation, the historical enumeration ofevents, an account of different opinions different people have about anissue, description of working condition in a particular industry.Both approaches have their place in research. Both have their strengths

and weaknesses.

The research done here is qualitative in nature due to the technicalquestions that require in depth interview.

4.3Classification of Data

The process of arranging data into homogenous group or classesaccording to some common characteristics present in the data is calledclassification.For Example: The process of sorting letters in a post office, the lettersare classified according to the cities and further arranged according tostreets.

Bases of Classification: There are four important bases ofclassification-

(1) Qualitative Base

(2) Quantitative Base

(3) Geographical Base

(4) Chronological or Temporal Base


39/63

39

(1) Qualitative Base: When the data are classified according to somequality or attributes such as sex, religion, literacy, intelligence etc.

(2) Quantitative Base: When the data are classified by quantitativecharacteristics like heights, weights, ages, income etc.

(3) Geographical Base: When geographical regions or location, likestates, provinces, cities, countries etc, classifies the data.

(4) Chronological or Temporal Base: When the data are classifiedor arranged by their time of occurrence, such as years, months, weeks,days etc.For Example: Time series data.

Types of Classification

(1) One -way Classification: If we classify observed data keeping inview single characteristic, this type of classification is known as one-way classification. For Example: The population of world may beclassified by religion as Muslim, Christians etc.

(2) Two -way Classification: If we consider two characteristics at atime in order to classify the observed data then we are doing two wayclassifications. For Example: The population of world may be classified by Religionand Sex.

(3) Multi -way Classification: We may consider more than twocharacteristics at a time to classify given data or observed data. In thisway we deal in multi-way classification. For Example: The population of world may be classified by Religion,Sex and Literacy

The Research ProcessThe research process is similar to undertaking a journey.For a research journey there are two important decisions to make-1) What you want to find out aboutor what research questions (problems) you want to find answers to;2)How to go about finding their answers.There are practical steps through which you must pass in your research

journey in


40/63

40

order to find answers to your research questions.The path to finding answers to your research questions constitutesresearch

methodology.

At each operational step in the research process you are required tochoose from amultiplicity of methods, procedures and models of researchmethodology which willhelp you to best achieve your objectives.This is where your knowledge base of research methodology plays a

crucial role.

Steps in Research Process:1. Formulating the Research Problem2. Extensive Literature Review3. Developing the objectives

4. Preparing the Research Design including Sample Design5. Collecting the Data6. Analysis of Data7. Generalization and Interpretation8. Preparation of the Report or Presentation of Results-Formal write upsof conclusions reached.

The objective of the research is that it understands current and futurerequirements of surfactants and to find new areas of business forSterling Auxiliaries Pvt. Ltd. Thus, the research is exploratory in nature.Hence, the research methodology used here is qualitative.The data collection sources are both primary (field research) andsecondary (internet).

The population defined is individuals who use surfactant as raw materialas per their respective industry (i.e. leather, paints, textile, metalfinishing, etc.) and even the ones that manufacturers surfactants andcater to the demands of the respective industries.

For this research, a relevant sample size of 25 companies, having officesin Mumbai, is taken due to distance constraint. The sample companiesare approached as a student of Chetanas Institute of Managementand Research and not as a representative of Sterling Auxiliaries Pvt.Ltd. as to receive fair or unbiased response and opinions; thus makingthe research qualitative and efficient.


41/63

41

In depth Questionnaire is used as data collection tool with technicalquestions to be asked to the respective experts (respondents).There areno categorical and numerical data to be of use to the research objective,hence there is no need for hypothesis testing.

Data Collection Methods

Desk Research or Secondary Data

Secondary data consists of information that already exists somewhere,having been collected for another purpose. (Kotler & Armstrong). Inother words, secondary data are those which have been collected bysomeone else and which have already been passed through statistical

process.

There are two sources of this data-Internal sources - this is data, which is available within the company,although companies do not make full enough use of the information thatis routinely collected.

Internal sources of data are found within the organization. Mostorganizations have masses of data, which should be well handled andorganized. Sales figures, past and present, broken down by product,

product range or brand.Many organizations employ sales personnel whohave direct access to the customer, and are sources of both formal and

informal information. Both types must be recorded weekly andsubmitted appropriately. Sales people work in a variety of situations, in

business-to-business markets, in offices taking orders over thetelephone, in over-the-counter sales or by visiting customers at their

premises. They have access too much information about customers, andtheir needs, and to what is happening in the market overall. Attendanceat conferences, exhibitions and meetings also gives opportunities toobserve competitor personnel, and their behavior. The customer serviceor complaints section in an organization is also important, and manyideas for product modifications have arisen here.

External sources - this is data, which has been published forcommercial reasons. A key source of secondary data is the libraryservice and most good libraries have a wide range of sources. Somegovernment data is available free; other secondary data can be veryexpensive. In addition to your university library there are some keylibraries, which can provide substantial and specific sources ofinformation. It is important in a research project to know what data is
http://managementfunda.com/customer-service/http://managementfunda.com/customer-service/


42/63

42

available since this will guide the structure and format of the fieldworkin the primary data collection stage. It is possible that secondary datasources can provide the complete answer to the problem under scrutiny.The least it will do is save time and money in directing the scope of thefieldwork. It can also influence the choice of data collection methodsused in the fieldwork.

Primary Data

Kotler and Armstrong say, primary data consists of informationcollected for the specific purpose at hand. In other words, primary dataare those, which are collected afresh and for first time and thus happento be original in character.

Once the desk research is complete the researcher will have a muchclearer idea of-

1) The up-to-date and relevant data

2) What data still needs to be collected to find a solution to the problemunder scrutiny.

To achieve the data and information the research teams need to answercertain questions:

1) What is it necessary to know?

2) Who will have the information which is sought?3) What is the best method (quick and efficient) to use to collect thisdata?

It is important to streamline the answers to these questions to avoidcollecting a mass of irrelevant data by inappropriate or inefficientmethods.

Types of primary dataThe two types of data are Quantitative Data and Qualitative Data

Quantitative Data

As the term implies this is data, which is expressed in numbers.Quantitative data is quite easy to collect, and a large amount of reliableand valid data can be collected largely by questionnaire in quite a short

period of time. It is a fairly formal approach. This data arises from what


43/63

43

is termed closed questions because the respondent is restricted in thechoice of answer the respondent can give.

E.g. Do you prefer to do your shopping in town centers or a purposebuilt shopping complex at the edge of town?

(a) Town Centre [ ]

(b) Shopping complex [ ]

(c) Both [ ]

E.g. Do you live in this town? YES [ ] NO [ ]

Qualitative data

Qualitative data is obtained from group discussions or in-depthinterviews and its findings are based on content rather than numericanalysis. Qualitative data is said to be much more subjective than itscounterpart. Questions are open-ended and can lead to a free ranging

and in-depth discussion on a specific point, which provides a variety ofrich data. There are no numbers or digits in this data and it is not subjectto statistical interpretation.

E.g. what further facilities would you like to see in the leisure center andwhy?

Types of Primary Data Collection-

Observation method-

Observation becomes a scientific tool and the method of data collectionfor the researcher when it serves a formulated research purpose issystematically planned and recorded and is subjected to checks andcontrols on validity and reliability.

Under the observation method the information is sought by way ofinvestigators own direct observation without asking from respondent

Example

In a study relating to consumer behaviour the investigator instead of

asking the brand of wristwatch used by the respondent may himself lookfor the watch.

Advantages

1. The method eliminates subjective bias

2. The information obtained under this method relates to what is currenthappening it is not complicated either by past behaviour or futureintentions and attitudes.


44/63

44

3. This method is independent of respondent willingness to respondentsas such is relatively less demanded of active co-operation on the part ofthe respondents as happens to be the case in interview or thequestionnaire method.

4. This method is particularly suitable in studies, which deal with

subjects who are not capable giving verbal reports of their feeling forone reason or the other.

Disadvantages

1. Its s an expensive method

2. The information provided by this method is very limited.

3. Sometimes unforeseen factors may interfere with the observationaltask.

4. The fact that some people are rarely accessible to direct observationcreates obstacle for this method to collect data effectively.

Surveys-

Surveys are concerned with describing, recording, analyzing andinterpreting conditions that exist or existed. The researcher does notmanipulate the variable or arrange for events to happen Surveys are onlyconcerned with conditions or relationships that exist, opinions that areheld, processes that are going on, effects that are evident or trends thatare developing. They are primarily concerned with present but at times

do consider past events and influences as they relate to currentconditions.

1. Survey type researches usually have larger samples becausepercentages of responses generally happen to be low, as low as 20 to30%, especially in mailed questionnaire studies. Thus, the surveymethod gathers data relatively from the large number of cases at a

peculiar time; it is essentially cross-sectional.

2. Surveys are conducted in case of descriptive research studies, usuallyappropriate in case of social and behavioral sciences because many typeof behavior that interest researcher cannot be arranged in realisticsetting.

3. Surveys are example of field research and are concerned withhypothesis formulation and testing analysis of the relationship betweennon-manipulated variables.

4. Surveys may either be census or sample surveys. They may also be


45/63

45

classified as social surveys, economic surveys, and public opinionsurveys. Whatever be their type, the method of data collection happensto be either observation or interview or questionnaire or opinionnaire orsome projective technique. Case method may as well be used.

5. In case of surveys, research design must be rigid, must make

economical provision for protection against bias and must maximizereliability, the aim happens to be to obtain complete and accurateinformation.

6. Possible relationships between the data and the unknowns in theuniverse can be studied through surveys.

Structured Vs Unstructured Data Collection

The data collection through questionnaires can be done through fourways as follows;

Structured disguised, Structured non-disguised, Non-structured disguised and Non structurednon-disguised

Note: Non-disguised data collection is also called as direct method &disguised is also called as indirect method.

Structured data collection

A structured data collection is a formal list of questions framed so as toget the facts. The interviewer asks the questions strictly in accordancewith pre- arranged order. For e.g. this method can be used when theinformation is based on the expenditures of the consumer on differenttypes of clothing like. Cotton woolen or synthetic, etc.

This structured questionnaire can be of two types, disguised and non-disguised, based on whether the object or the purpose of the survey isrevealed to the respondent.

The main advantage of this method is that, the information can becollected in a systematic and orderly manner.

However when it comes to personal questions, this method seems to beless effective.

Structured disguised: - In this case the researcher does not disclose theobject of the interview, because he feels that by revealing that the very

purpose of the interview will get defeated.

Structurednon-disguised: - In this case, everything is pre- arrangedand the researcher reveals the objective of the survey to the respondent.


46/63

46

This is the most widely followed approach in market research. This isbecause it is generally felt that the respondent should be taken intoconfidence, so that he can realize the relevance and give desiredinformation.

Non-structured data collection

It is a kind of data collection method where the data to be collected isnot pre- arranged or not listed in a proper structured format. Thereforethe entire responsibility is left on the researcher to ask the respondent, inthe way he feels fit. The researcher only has certain main points onwhich he develops the questions to be asked. Such a method is devoidof rigidity and the researcher has sufficient amount of freedom to collectthe data in the order he wants. Again here there are two main types ofnon-structured methods of data collection.

Non-structured disguised: - again here the objective of interview is not

described to the respondentNon-structured non-disguised: like in case of structured non-

disguised, the respondent is taken into confidence by revealing thepurpose of the survey.

Structured /disguised

The respondent is asked a structured set of questions in a preconceivedformat. However he is not made aware of the purpose of the survey.Such methods are useful in obtaining psychographic profiles, wherein,similar responses from a set of respondents would club them under a

specific lifestyle segment.

Advantages

1) Since respondents are not aware of the objectives of the research,they do not give biased opinions.

2) The interviewer bias is reduced on account of the structured nature ofthe questionnaire.

Disadvantages

1) The respondents may show disinterest, as he does not know thepurpose of the survey.

2) It cannot be compared with other similar studies which are structuredbut non-disguised i.e. it would be difficult to check the reliability andvalidity of the results.


47/63

47

Non-structured/disguised

Herein, the respondent is again not aware of the purpose of the survey.At the same time, the questions posed to him do not follow an alreadythroughout sequence. Projective techniques are available to get theinnermost motivations, fears and aspirations of the respondent. The data

lends itself to a more qualitative analysis.For e.g. in the case study discussed in the adjoining column respondentswere also asked to complete the following sentence in the latter part ofthe questionnaire.

Advantages

1) It is very interesting to the respondents who might participatewillingly

2) It is less time consuming & costly to collect the data as well as toanalyze it since the number crunching involved is not there.

3) It is very useful to bring out the inner motivations and aspirations ofthe respondents.

Disadvantages

1) The respondents might not take the entire data collection effort veryseriously; rather treat it as a game.

2) The qualitative research is totally dependent on the interpretationsmade by the researcher. It does not have any numerical analysis tosupport.

Structured/ Non-disguised.

Herein, the purpose of the survey as well as nature of the questions ismade known to the respondents. The interviewer has little room for hisown interpretations, as the questionnaire is fairly structured one to lenditself to statistical analysis. Most of the descriptive studies using thestatistical survey method would fall under this category.

For e.g. based on the exploratory survey in the form of secondary dataanalysis, in-depth interviews and focus group interviews and focusgroup interviews, in the case of fresh orange juice, the data collectionmethod most suited was the structured non-disguised type.

Non-structured/ Non- disguised.

The purpose of the survey is made known to the respondents and there


48/63

48

is no rigidity in the questioning process. It is similar to the in-depthinterviews and group interviews, which were discussed earlier. Theflexibility in the questioning process allows attitudes and opinions tosurface very freely and allows the respondents to speak deeply about thesubject matter.

Opinions of the industry experts on how the industry would fare oreconomists on the direction of the growth of the economy or variousfinancial institutions like IDBI, ICICI, or UTI etc., expressing theirviews on how the stock markets would be performing, are allillustrations of non-structured data collection methods. This method isgaining a lot of importance these days with a number these days with anumber of experts being available on a variety of topics. Opinions ofthem would be crucial to consider before arriving at decisions

Structured / Disguised

In this case, the observers are told to record the actions of therespondents on a structured form but the respondents are not madeaware that they are being observed. It is a structured, disguised study.

For e.g. observers may pose as customers to observe the sales made bysalesman over counters in departmental stores selling a variety of brandsof jeans, shirts, etc. in order to observe any type of brand push or

persuasion by the sales person

As a variation, he may position himself in the shop with permission bythe management and observe the sales person interact with customers.

Advantages

1) The actual behavior of the person of interest is recorded (i.e. eithersalesman or customer); so chances of predisposition bias are low.

2) A natural setting is provided. For e.g. the arrangement of displayoptions might be observed which one attracts the customer the most.

Disadvantages

1) It is not very ethical to observe peoples reactions by keeping them inthe dark. It might be construed as spying.

2) The data recorded is totally dependent on the observer and his skills.

Non-Structured / Disguised

In this cas

market analysis of surfactnats

Documents