2.1 Mettler-Toledo Process Analytics AG

Mettler Toledo Group

Mettler Toledo specialises in providing precision instruments with the most comprehensives range of services on a global level. With more than 10.000 employees, the company generates annual sales of over 1.8 billion USD. Mettler Toledo has been listed on the New York Stock Exchange since 1997.

The Mettler Toledo Group consists of the following five divisions;

Figure 2: Mettler Toledo organisation (Source: Mettler Toledo Process Analytics Catalogue)

The whole thesis revolves around the orange-marked Process Analytics division.

Mettler Toledo’s Distribution Network

Based at several global production sites, with more than twenty market organisations, and numerous sales representatives Mettler Toledo maintains a distribution network all around the world.

Mettler Toledo Process Analytics

The Process Analytics division concentrates on analytical instrumentation solutions for industrial manufacturing processes. The division consists of two business units: INGOLD and THORNTON, both internationally recognised leaders in their respective markets and technologies. Both business units are typically covered by the same sales engineers within the division.

About 600 employees work for the division MTPRO and it generates sales far above 100 Million USD. The sales ratio of Ingold to Thornton is approximately 80:20.

INGOLD – Leading Process Analytics

INGOLD is a worldwide leader in pH, dissolved and gaseous oxygen, CO2, conductivity and turbidity solutions for process analytical measurement systems in chemical, food & beverage, biotechnology and pharmaceutical industries. The Production Operation of the Business Unit Ingold is based in Urdorf/ Switzerland.

INGOLD measurement loop

Every analytical measurement system consists of three main components as illustrated in figure 3. The set-up of these three components is called a measurement loop. This is important to know for the reader since the term loop will appear many times during the thesis.

Figure 3: Measurement loop MTPRO (Source: Mettler Toledo Process Analytics)

Sensor: Responsible for the measurement

Housing: Physical connection of sensor to a vessel, tank, pipe etc.

Transmitter: Provides a current output

INGOLD product portfolio overview

portfolio overview (Source; Mettler Toledo Process Analytics Competence Presentation)" class="wp-image-9038 size-full" height="292" src="https://sgbs.ch/wp-content/uploads/Figure-4-Ingold-product-portfolio-overview.png" width="479"> Figure 4: Ingold product portfolio overview (Source; Mettler Toledo Process Analytics Competence Presentation)

As for some applications a measurement loop can optionally be upgraded with an additional system, as illustrated at the right hand column “System Integration”. Such a system provides automatic maintenance of a measurement loop.

THORNTON – Leading Pure Water analysis

THORNTON is the market leader in critical ultrapure and pure water analytics, where accuracy and reliability are essential to product yield. Their leading market position is demonstrated by its innovative analytical instruments and sensors for the measurement paramaters of resistivity, conductivity, TOC, pH, dissolved oxygen and Ozone. The Production Operation of the Business Unit Thornton is based in Bedford/USA.

The THORNTON product portfolio follows the same pattern in terms of the three component set-up, with the exception of the non-existence of System integration.

Overview Customer base

MTPRO differentiates its customer base between the end-user segments and the System Fabricator (SF) / System Integrator (SI) segment.

The end-users are manufacturing companies that produce final products such any kind of chemicals, pharmaceuticals and food & beverages. The analytical measurement loops are used for their production processes within their manufacturing plants.

The SF/SI produce integrated systems, for instance ultra pure water systems. The analytical measurement loops are integrated into these systems. The SF/SI deliver their systems to various end-user segments.

Table 1 below displays the various end-user segments as well as the SF/SI. It also displays the significance of the segments for the Business Units Ingold and Thornton.

Table 1: Overview customer base of Mettler Toledo Process Analytics (Source: Selfmade layout)

To sum up, the major customers for the Business Unit Ingold are the end-user segments. As for the Business Unit Thornton the major customers are the SF/SI.

Business model MTPRO

It needs to be understood that the sensors, in particular pH sensors, are considered consumables since they are subject to wear and tear and therefore need to be replaced on a regular interval. The business model for MTPRO represents a significant sales driver in terms of sensor consumables. First sales priority is given to the sales of new measurement loops. New loops in turn generate incremental sales of sensor consumables. This has an accumulating effect over years. Figure 5 displays an example of sales growth of a market organisation over four years due to repeat sales of sensor consumables carried over from previous years.

Figure 5: Business model MTPRO (Source: Self-made layout)