th Apr,2012 1 - downstream-asia.com€¦ · • Flip-Flop Scenario ... Industrial Integration Model for a typical Petrochemical ... An emerging way for downstream integration and

4th Apr,2012 1 Strictly Confidential Farabi Marketing & Strategic Planning Dept

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Contents

• Value Chain Mapping and Segmentation Philosophy

• Flip-Flop Scenario

• A brief Value Chain of Petrochemicals

• Philosophy behind the basic frame work

• Generalization of Complexity and the Big Question….?

• Customer Orientation Index and Value Chain Co-relation

• Why the metamorphic Phenomena..?

• Model Creation for Value mapping

• Case Studies

• Model and Algorithm Result Discussion

Industrial Integration Model for a typical Petrochemical Unit.

Product Market Domain

• Various Downstream Products

• Lateral Product Markets

Financial Market

Domain

• Loan

• Equity Funding

• JV & Merger

Infrastructure Domain

Project Developmen

t Domain

• EPC

• Technology Licensing

• Technology Research /Know-how

• Mechanical Erection • Civil Construction • E & I

•Raw Material

• Fuel

•Utilities

Refinery Domain

•Policy

•Taxes

•Rules & Regulation

Government Domain

• Loan

• Equity Funding

• JV & Merger Financial Domain

• Technology Know-how

• R&D & Licensing Technology Domain

Petrochemical Unit

Value Chain Mapping and Segmentation Philosophy

Integration Model for a Banking Unit :

Financial Product

related to Specific Market Domain

•Investment Products

•Retail banking Products

Refinery Financing Domain

• Loan

• Equity Funding

• JV & Merger

Infrastructure Financing

Domain

Project Development

Financing

Domain

• EPC

• Technology Licensing

• Technology Research /Know-how

• Mechanical Erection

• Civil Construction

• E & I

•Expertise

•Remuneration

• Social Security

Human Resource Domain

•Policy

•Taxes

•Rules & Regulation Government Domain

• Risk management

• Equity Funding, Liquidation

• Valuation

Higher Financial Domain

• Technology Support

• Operation Management

• Security management

Technology Domain

BANKING UNIT

Flip-Flop Scenario

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A brief Value Chain of Petrochemicals

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Innovations and strategies for future’s integration models

• Paradigm of commodity hydrocarbon products to consumer products

• Determination of new market segment

• Assumption and Procedure of determination of market segment

• Creation of mathematical model and design of experiment for market determination

• Result on mathematical model and DOE

• Derivation of strategy and formulation for future integration models

Philosophy behind the basic frame work

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Generalization of Complexity and the Big Question….?

What is more than Integration ……?

• Value Chain Mapping • Customer Orientation Pattern

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Crude Oil

Shale Oil

Refinery Downstream

Sector

End User

Customer Orientation Index and Value Chain Co-relation

Further Downstream

Sectors

Metamorphic Phenomena

Commodity Market Consumer Market

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Crude Oil

Shale Oil

Refinery Downstream

Sector

End User

Why the metamorphic Phenomena..?

Further Downstream

Sectors

Commodity Market Consumer Market

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Model Creation for Value mapping

• Quantitative Value • Qualitative Values

Value Orientation is one of the natural phenomena which is a connecting parameter over the income and purchase power parity of individual customer.

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Case Studies

Olefin value Chains

Benzene Value Chain

Paraffin Value Chain

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Model and Algorithm Result Discussion

Econometric parameters

• Customer Orientation Index • Value Chain Sustainability index • Purchase Power Parity

Stochastic Process Algorithm & Non Linear Mixed Effect Model

Focus on Bottom of Pyramid - An emerging way for downstream integration and in socio-economic perspective

• Development and conceptualization of Strategy

• Strategy implementation in focus to BOP

13 Strictly Confidential

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