The growing economies in South-East Asia (SEA) attracted many large multinational (MNC) chemical distributors from America and Europe. This led to increased rivalry in the chemical distribution segment of the chemical industry. Many small chemical distributors were acquired by these MNC distributors as the industry consolidated. MNC chemical distributors were able to provide a wider market reach for their principals. In addition, they had a wider product base for the end-product manufacturers as compared to SMEs like MahaChem. Chemical Market in Asia The Indian chemical market had a turnover of over S$124.8 billion 3 in 2008. India was one of the largest recipients of foreign direct investment among emerging markets -- there was a huge inflow of S$55 billion 3 in FY 2009/10. The Gross Domestic Product (GDP) in India grew by 7.7% in the second quarter of 2011 over the previous quarter. With such a strong growth rate, the Indian chemical market was forecasted to reach an increase of 115.8% ($292.4 billion) since 2009. 3 Source: - average annual exchange rate of S$ 2.08=1EURO for 2008 and S$ 1.45 = 1 US$ for 2009.