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

1

2

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

5

A brief Value Chain of Petrochemicals

6

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

7

Generalization of Complexity and the Big Question….?

What is more than Integration ……?

• Value Chain Mapping • Customer Orientation Pattern

8

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

9

Crude Oil

Shale Oil

Refinery Downstream

Sector

End User

Why the metamorphic Phenomena..?

Further Downstream

Sectors

Commodity Market Consumer Market

10

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.

11

Case Studies

Olefin value Chains

Benzene Value Chain

Paraffin Value Chain

12

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

13