Used as a key intermediate in organic synthesis, particularly in the preparation of pharmaceuticals and fine chemicals. Its active methylene group allows for easy alkylation and condensation reactions, making it valuable in constructing complex molecules. Commonly employed in the synthesis of heterocyclic compounds, including pyrazoles and isoxazoles, which are prevalent in drug development. Also utilized in the production of agrochemicals and dyes due to its ability to introduce functionalized ester groups. The monohydrate form enhances stability during storage and handling, improving its utility in industrial processes.