Executing a ₹40 Cr Specialty Chemical Plant 30% Faster with Multi-Stage Vendor Qualification & Stringent MOC Compliance

Our client is a leading specialty chemical manufacturer with sixteen factories across Maharashtra and Gujarat.  Their product portfolio serves industries such as agrochemicals, polymers, additives, surfactants, pigments, and dyes. 

The client wanted to build a chemical plant with cutting-edge technology in Gujarat. They approached Venwiz to help them identify some key vendors for certain key components of their plant. 

This plant was designed to handle highly acidic chemicals, requiring stringent material and safety specifications. Over 70% of the equipment, including reactors, agitators, and storage tanks, needed glass lining to prevent chemical reactions with the material of construction (MOC). Given the critical nature of these requirements, finding vendors with the right expertise was a challenge. The client sought to expand their vendor pool to ensure better price discovery, optimize costs, and reduce the time required to identify capable suppliers in a niche market with limited options.

Project Scope & Key Highlights

Value: ₹40 Crore
Scope: Mechanical, Structural, Piping, and Electrical Packages

Mechanical and Piping Scope

• Fabrication, testing and installation of MS, GI, CS (IBR and non-IBR), and CSGL pipes, fittings, and valves totalling 73,380 inch-meters (IM).

Structural Fabrication

• Construction of two multi-storied prefabricated structures (35 meters each) housing static and dynamic equipment involving supply, fabrication and erection of structural steel members.
• Additional components included staircases, gratings (FRP and GI), and chequered plates.
• Structural weight: 1,200 MT (total).
• Static and Rotary Equipment: 1,351 MT.

Electrical and Instrumentation

• Installation and testing of electrical panels, LT-HT works, cable laying, cable tray installation, and light fittings. 
• Supply, installation, commissioning, and calibration of instrumentation like control valves, transmitters and gauges. 
• Supply, install, and test fire alarm systems and supply cables. 
• ELV systems 

Key Challenges

• Finding vendors skilled in fabricating and erecting complex systems for chemical environments.
• Managing strict timelines while coordinating multiple packages.
• Vendors capable of handling the erection of rotary and static equipment weighing 50 tons without damaging equipment. 
• Vendors who have experience working in local area. 

Venwiz Solution: AI-Powered Vendor Selection & Cost Optimization

1. Seamless Vendor Evaluation

Using our AI-powered platform, we evaluated an extensive vendor pool across India. Key evaluation criteria included:

• Capacity: Turnover, manpower, and equipment.
• Experience: Proven expertise in chemical, pharma, fertilizer, and oil & gas projects.
• Capabilities: Technical know-how, tools, and resources.
• Local Experience: Executed projects in a similar geography 

From an initial pool of 13 vendors, we shortlisted 4-5 top candidates, providing comprehensive assessment reports to the client.

2. Technical Coordination and Clarity

We collaborated with the client’s QA/QC and the technical teams to understand the scope of the project, ensuring clarity in RFQs. Detailed site visits helped us align technical requirements with project goals. We also gain an understanding of the site and local conditions. 

3. Cost Optimization

Leveraging our cost calculator tool and industry benchmarks, we provided competitive cost estimations by:

• Comparing vendor quotes against market standards to ensure optimal pricing.
• Conducting detailed techno-commercial analyses, significantly reducing the client’s turnaround time (TAT).

Results Delivered

• Localized Vendor Selection: Identified and onboarded relevant vendors capable of executing the project in Gujarat.
• Time Savings: Reduced vendor assessment time significantly through streamlined processes.

Read about how a chemical industry leader saved 10% on advanced HVAC procurement.

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