July 19, 2024

Industry trends and challenges in the segments Silox India is focusing on?  

We are primarily into the inorganic chemical space serving diverse end market segments like Textiles, Automotive, Consumer, Paints and Coatings etc. 2023 has been a mixed bag. The textile industry has been most impacted, especially the denim segment, factors including global recession, war impact, reduction in demand from North America and Europe, fluctuations in cotton prices and unpredictability of the business badly impacted the demand from textiles. However, the market started stabilizing and picking up and the capacity utilisation improved from 40-50% to around 80% in Jan – March 2024 quarter. The biggest challenge we are facing is whether it's going to be sustained for a longer period of time at this level. The domestic demand for textiles in India seems to be more stable. Also, the demand for synthetic textiles is more predictable and continues to be quite strong. Overall, the textile industry is a mixed bag and while it was tougher, it's getting better.  

We primarily supply Zinc oxide and Zinc derivatives to the automotive market (tyres and tubes). We have seen sustained good demand from both the OEM and retail segments. Retail has seen some impact due to unavailability and high price of raw materials a year ago but overall the industry seems to be positive in terms of demand.  

Moreover, the coatings and infrastructure market is seeing robust demand due to continued investment by the Government of India and private players in infrastructure like railways, airports and roadways.

We see a sustained demand both from the domestic market and global key players whom we work with.  

In the consumer segment, we are in unique market segments like jaggery processing, dates processing, etc. We are seeing moderate increase in demand as people are getting more health conscious consuming more jaggery than white sugar. However, availability of sugarcane but for this particular industry getting limited and hence would say this market is more muted.  

Combining all these different factors we have seen moderation in export but robust domestic demand. On overall performance, we had pretty strong financial performance even though our top line have seen moderation but improved bottom line due to efficiency improvements, improved Zinc valorisation, and introduction of value added product in Zinc derivatives increased our bottom line.   

Almost 80% moderation has happened globally. Do you see things going back to 100% if it goes as per plan?

We were hoping to get better, but unexpectedly Red Sea issue impacted significantly both from freight point of view which is more than five times and shipping times which has doubled affecting  the competitiveness of the industry. But looking forward we are positive and most of our customers  were seeing an increase in the demand in short term, but considering dynamic geopolitical situation, visibility is limited and it is very difficult to predict beyond a quarter.  

How has Silox India performed in FY 2023-24 and what's your expectation in FY 2024-25? 

We had a good  year considering the challenges during the year. We have seen a significant drop in demand for Sodium Hydrosulphite (Hydros) products which primarily gets into the denim market but it has been compensated by the robust demand for value based products. We are able to deliver for other markets like automotive and industrial segments. We were down on the top line, but we have fared better on the bottom line primarily due to efficiency improvement, commercialization of some value added products and addition of new segments.

Do you think that FY 2024-25 would be compensating for whatever losses that you made in the last fiscal?

We are positive that the demand will pick up and the situation will continue to improve unless we see any other major disruption. From the domestic market side, once the election is over, we see there is going to be continued focus on enhancing infrastructure. We are positive about being able to capture whatever the loss, not in the next quarter, but overall for the financial year.

Any numbers with respect to FY 2023-24?

Last year, we saw a double digit growth in profitability. We have seen a single digit decline in top line and that's primarily to do with the metal pricing. We don't disclose individual unit numbers, but we had one of the strongest financials in terms of the bottom line performance.  

What's your cumulative production capacity of all the three plants (Silvassa, Ekalbara, and Atladra)? How do you see this capacity changing at the end of FY 2024-25? 

We completed a significant expansion of Zinc powder capacity in Silvassa. In 2023-24, we were able to fully utilize the capacity of the Silvassa plant. We added new capacity Hydro Zinc in our Ekalbara site and expect additional capacity to be helpful in terms of meeting future growth. Overall, our capacity has increased by almost 10% with the debottlenecking and with efficiency improvement initiatives. We aim to further increase capacity for our zinc powder by 8,000MT/year, we have received the board approval and will be executed during FY 2024-25. 

What is the total capacity that you have right now? 

The total capacity will be close to 170,000 kilo tonnes per year. We continue to invest in expansion and will be able to enhance 5-7% of the capacity during the current financial year.  

What was the investment that you made last year and what's the plan for this year?

We expanded a new line for our Silvassa facility that was 7,000 tonnes capacity expansion and also executed debottlenecking for our overall capacity. Both of them were growth Capex. In terms of overall Capex which includes operational debottlenecking and growth Capex, we invested around Rs. 30-40 crore last year and we expect to continue to do the same. We have our new site coming up near Dahej and there is going to be a significant amount of Capex that we will be spending.  

Strategy for India to become a global manufacturing hub for the segments that you are in and what role does Silox India play in making it a reality? 

Silox India has been a significant contributor to the overall turnover of chemicals globally and will see the highest capital investment in the next two years. In terms of being global and relevant, Silox India has almost 40% of its produce being exported to more than 65 countries. We have a significant presence already in exports. Our major focus will be on enhancing our Sustainability footprint, Improving efficiency and Safety at operations and new Product Innovation. These are the three fundamental blocks on which our future investments will be based. Our major Capex is being invested in enhancing our sustainability footprint in the areas of power, water and waste reduction.  

In FY 2023-24, Silox India acquired a 35 acre land parcel at Payal industrial Park? What's the Capex that you are investing and what products are you planning to manufacture?

We have successfully completed the acquisition of the land parcel in the last quarter of last year. The plan is to set up a new greenfield site for all our Sulphoxylate products and Zinc Oxide and Zinc derivatives. This will be a greenfield project and will be consolidating product line currently produced in Atladra site to the new site.

The new facility will use new technology and significant improvement in terms of overall ESG impact and  will be more self-reliant including backward integration. In terms of the capacity, we are going to build almost 30% additional new capacity compared to our existing product line for these products. We expect the construction activity to start by the third or fourth quarter of this year and we expect to start commercial production and regular supplies in the second quarter of 2026.  

Any numbers on the Capex, what amount of investment you are planning to do in the next two fiscal years?

Including the land, we will be investing more than Rs. 500 crores on the new site over next three years. Essentially, this plant is going to be inherently safer, ESG compliant, Digitisation and Automation of critical operations, and we want it to be the factory of the future. At the same time, it is going to be much more backward integrated meaning more self-reliant.  

Silox India has been focusing on innovation. What is the next product you are planning to take to the global level?

We are putting more and more focus in terms of delivering value-added new Zinc derivatives which will help in enhancing customers' product performance. We have quite a few new products in the pipeline which we will be commercializing soon catering to the coating industry, rubber industry, industrial application and automotive industry. In the medium term, we are going to see a lot of new products coming from Zinc derivative product pipelines. For the long term, we have new innovation for recycling Lithium ion batteries by capturing the value and giving back to the industry for future use.

This is our new piece of business where we are putting a lot of our R&D effort in terms of technology and also getting into commercial operations. We have earmarked significant investment in R&D to enhance the footprint of our processes. We have taken new initiatives based on the theme Reduce, Recycle and Reuse. Our future facilities are more focused on digital tools and it’s about enhancing what we were with the current facilities.

In terms of recycling of Lithium ion batteries, we have moved from lab to pilot plant scale and are able to produce a tonne of material. We are in the process of getting the material qualified from a third party and from our key long term customers. We are pretty much close to finalizing the technology development and expect to have a new commercial facility start operating from 2027. We are in the process of completing the acquisition new land in Paradip (Orissa) and will be making an announcement once we have the final agreement.  

New technologies which you are focusing on which will deliver best quality products?

We have been focusing on reducing our energy intensity. For example: earlier when we were using Zinc powder, we now use specialized grade which will enhance efficiency of the product and reduce energy consumption by five percentage points. We have been putting a lot of R&D effort in terms of water reduction and recycling, reuse both from process and non-process areas.

At one of our sites, we are able to reduce the total water consumption, especially in the process area by 38% in the last two years. This comes from not just one initiative but a combination of almost 40 different programmes. Since water is one of the main resources, we are putting a lot of focus on that one. We are using more recyclable materials to generate less waste and also reduce the hazardous chemicals, improving the tolerances and the tightness in the control of the process.

Sustainability roadmap of Silox India and when are you planning to achieve Net Carbon Zero?

Being a European entity, there are declaration requirements starting from 2025-26. Therefore, we need to report all our ESG initiatives at the global level. We are working towards that roadmap and have already started taking certain initiatives. We are one of the major steam producers and earlier it used to be produced 100% from fossil fuels. Today, close to 70% of steam generation is done through a bio- waste fuel, currently our energy mix is both biofuel waste and gas.

Going further, we will be reducing even the gas requirement to sustainable energy. In terms of the electricity, we were almost 1-2% of the sustainable energy three years back. We are looking at fulfilling 55% of our energy needs from solar and wind by September 2024. This will have an impact in terms of 18,000 to 19,000 tonnes of CO2 reduction considering the energy mix of what we buy just for the electricity. We have significantly reduced consumption of water in all our plans.   

Manpower that you are planning to add for two new plants?

We will be recruiting quite a few people to work for the design stage for the new project and for the battery recycling project. There is going to be a significant new recruitment coming up in the next two to five years. In the current year, we are going to be limited in number where we will select a few high level project management professionals. Our major recruitment is going to be in 2025 and 2026.

July 06, 2024

2024 industry trends in printing inks, varnishes, resins, and pigments?

The publication industry is experiencing stagnation primarily due to the pervasive influence of digital media and the escalating use of mobile and IT devices, facilitated by affordable data costs. Conversely, the packaging sector, encompassing folding cartons, corrugated boxes, rigid cartons and flexibles is witnessing a notable uptick.

Particularly encouraging is the revival of volumes in rural India, approaching pre-COVID levels. A noticeable shift is observed towards sustainable ink systems within the flexible packaging domain. Innovations such as UV LED, EB, Sheetfed Mineral Oil Free (MOF) inks, Web MOF inks, and water-based inks are gaining traction among print buyers, emphasizing a growing commitment to eco-friendly solutions.

How has hubergroup performed during FY 2023-24 and what's your forecast for FY 2024-25?

In 2023-24, our Print Solution business recorded a significant YoY volume growth, accompanied by a remarkable recovery in business margins compared to the previous fiscal year. Forecasts for FY 2024-25 indicate a similar growth trajectory to that witnessed in FY 2023-24, suggesting continued momentum and positive trends for the company.

For the last 250 years, hubergroup has been providing innovative printing inks and printing aids such as coatings and additives for commercial, packaging and newspaper printing. How difficult was it to develop printing ink families?

Managing and maintaining a leadership position demands relentless effort. At hubergroup, we addressed this challenge by developing innovative printing ink products due to our culture of innovation. We have been constantly refining and expanding our product range to meet the ever-evolving needs of the printing landscape. We have also aligned our offerings to meet market demands. These have reinforced our standing as innovation leaders in the printing domain.

What's your India and Asia strategy for printing inks in FY 2024-25?

Our strategy is centered on two key pillars.

Continuous Innovation and Optimization: We are committed to consistently innovating and optimizing our printing ink product range with a global market perspective to ensure that we stay ahead of the curve.

Expanded Market Penetration: We aim to enhance our presence in specific segments such as Low Migration Low Odour Conventional & UV Inks for offset and web applications (MGA), Premium folding carton inks for Gravure, and water-based inks for Gravure applications. By strategically penetrating these areas, the company can better cater to the diverse needs of the customers and solidify our position in the market.

The Chemicals Division of hubergroup has competence in production of raw materials for printing inks and coatings and has an extensive product portfolio as it addresses customers all over the world. What's your India and Asia strategy for the Chemicals Division in FY 2024-25?

Our strategy showcases a balanced and forward-thinking approach. Our primary focus is to create new and advanced products, specifically tailored for the ink and coatings sector, to meet the needs of our valued Indian and Asian customers. Our portfolio diversification strategy showcases synergistic offerings tailored to rubber and adhesive applications, enabling us to capitalize on emerging opportunities. Recent successes, such as our advancements in lamination adhesives, demonstrate our expertise in the field.

We've also invested in contract manufacturing services for a couple of leading coating manufacturers to strengthen our industry partnerships and expand our presence. Looking ahead, we're committed to continued innovation and product development while maintaining our high standards of quality and customer satisfaction.

In India, hubergroup operates two production plants, which manufactures UV-curable oligomers, polyurethane resins, laminating adhesives (2K PU systems), modified rosin resins, PVB, ketone resins and polyamides as well as pigment concentrates, alkali blue, and adhesion promoters with a cumulative production capacity of almost 300 kilotons.

Industry where these products are being presently used and are you looking at new industry verticals for these products?

As you rightly highlighted, hubergroup stands at the forefront with an impressive manufacturing capacity exceeding 300 KTPA across two state-of-the-art plants. These facilities manufacture a wide range of products catering to an array of industries and sectors, spanning ink, coatings, construction, flexible packaging, and adhesives. Our commitment to innovation is evident in our continuous expansion of product offerings.

We prioritize sustainability and regulatory compliance, developing products that not only meet stringent industry requirements but also align with the growing emphasis on environmentally responsible solutions. Furthermore, we actively explore new industry verticals, seeking opportunities to deliver value and meet specific market needs. We aspire to continue to lead the market by anticipating trends and delivering innovative solutions that surpass customer expectations.

What strategy should India adopt to become a global manufacturing hub for printing inks, varnishes, resins, and pigments? And, what role does hubergroup see for itself in making India a global manufacturing hub?

India's path to becoming a global manufacturing hub for printing inks, varnishes, resins, and pigments hinges on strategic initiatives. Embracing lean manufacturing, leveraging low-cost automation, harnessing data, and computing for proactive process control, upskilling the existing workforce, optimizing energy usage through advanced machinery, and adopting renewable fuels and energy sources are key strategies.

hubergroup envisions a pivotal role in this journey. By leveraging our expertise and global experience, we aim to contribute significantly to making India a global manufacturing hub. Through collaboration, innovation, and investment in cutting-edge technology, we aspire to drive efficiency, sustainability, and excellence in the manufacturing processes.

hubergroup research centers have been investing a lot of time and energy in development of product safety or the identification of environmentally friendly alternatives, and much more by launching more than 20 new products per year. 

What's the reason behind this continuous innovation and bringing sustainable products? How will it increase the company's topline and bottomline?

Our steadfast commitment to continuous innovation and sustainability is driven by several key factors. Firstly, the rapid evolution of markets, coupled with an increasing demand for sustainable solutions, propels our drive to adapt and stay ahead of the curve. Moreover, stringent global regulations and the growing emphasis on a circular economy compels us to prioritize the development of environmentally friendly alternatives.

Launching over 20 new products annually reflects our dedication to remaining at the forefront of market trends and meeting the ever-changing needs of our customers. By enriching our portfolio with products that resonate with global demand, we aim to strengthen our market presence and enhance competitiveness.

hubergroup's collaborative R&D approach, epitomized by our dedicated teams in India and Germany, embodies our philosophy of "Designed in Germany, made in India”.  We are confident that increased investment in R&D, through the addition of resources and equipment, will expedite our development process, enabling us to introduce innovative products to the market more swiftly.

While financial performance is essential, our ultimate goal extends beyond profit margins. We aspire to contribute meaningfully to India's societal advancement by delivering top-notch product offerings. We firmly believe that our strides in sustainable product development will not only drive long-term organizational success but also positively impact society and the environment.

Last year hubergroup launched three new solvent-based ink series - Gecko Platinum Plus, Gecko Platinum NT and Gecko Gold which are specifically tailored to the needs of the Asian market. How are you planning to position these products in the Asian and Indian market and what is the size of the Asian market?

Our products are strategically positioned as premium inks for the food packaging segment. The response from converters has been highly favorable, with most of our Toluene-free offerings gaining significant traction in the market. In India, the market size for toluene-free inks amounts to approximately 50–60 thousand metric tons annually. Safety and health to all stakeholders would always be a priority at hubergroup.

hubergroup is planning to expand its UV oligomer, monomer, and ketonic resin product range through its own manufacturing unit or custom manufacturing. What's the update on this front?   

We've made substantial strides in expanding our UV oligomer, monomer, and ketonic resin offerings. For UV oligomers, we've boosted both our in-house manufacturing capacity and custom manufacturing capabilities. Looking ahead to FY 2024-25, further expansion is on the horizon to meet the escalating demand for energy-curing applications. The expansion of our monomer and ketonic resin product lines has been guided by market demand. We've enriched our portfolio with new monomers and intensified our marketing initiatives for ketonic resin, actively exploring new applications to maximize its utility.

In tandem with these expansions, we're also enhancing capacities for additional products like PVB and polyamide. These initiatives reflect our commitment to holistically address market needs and deliver a diverse array of premium-quality products to our valued customers.

Initiatives taken by hubergroup for enhancing process safety across all facilities/processes to make operation intrinsically safe?

We are implementing the "Building Defenses Program," which operates on a set of 16 leading indicators to improve safety outcomes. We are very proud of having one of the best effluent treatment and water treatment plants in the industry. We continue to set new standards in the safety of our employees and the society around us through a series of continuous improvement programs.

Sustainability roadmap of hubergroup and key sustainability initiatives of the company in India and Asia in 2024?

We are adopting the CSRD Initiative, which stands for Corporate Sustainability Regulation Directive. This directive will directly impact on our current reporting obligations. Originating from Germany, this initiative aligns with ESG requirements and is equivalent to the compliance standards of EcoVadis for the region.

When are you planning to become Net Carbon Zero? Milestones that you have set for achieving it?

We continue to build strategies and find innovative ways to minimize our carbon footprints. At our sites in India, we are reducing energy consumption through energy-efficient technologies and process improvements. We have implemented photovoltaic systems in our plants. We are also fostering the use of renewable energy sources like wind and solar.

Major CSR initiatives being undertaken by hubergroup in FY 2023-24? Plans for FY 2024-25 with respect to rural healthcare?

Our CSR initiatives span a spectrum of impactful endeavors targeting livelihood improvement specific to health and education, specifically in the neighboring regions of Vapi and Silvassa, where our factories operate. Teaming up with renowned NGOs, we're making a tangible difference in communities. Our Fartu Davakhanu (Mobile Medical Vans) equipped with doctors and nursing staff continues to visit the rural areas of Valsad and provide general healthcare, dental and eye care services.

July 04, 2024

What are the key trends/challenges in organic and inorganic pigments in 2024?  

Over the past 150 years, the manufacturing landscape for pigments, both organic and inorganic has undergone significant shifts. Originally concentrated in Europe, the US, and Japan, production has progressively moved to countries like China and India over the last many decades. This trend is expected to continue for the foreseeable future. Simultaneously, there's a growing emphasis on sustainability in pigment manufacturing, with India emerging as a key player in incorporating eco-friendly practices, such as utilizing sustainable materials and promoting energy efficiency.

However, manufacturers are encountering several challenges in this evolving market. Intense competition has led to pigments being commoditized due to large-scale production and vertical integration. Moreover, the presence of unregulated and disorganized markets adds complexity, although this is expected to change, particularly in India, following in the footsteps of China's regulatory adjustments.

The industry is witnessing a shift towards environmentally friendly and high-performance pigment chemistries, with functional innovations extending beyond traditional color and aesthetics. Functional advancements are gaining traction, particularly in coatings and plastics, where pigments are required to meet stringent performance criteria. These include attributes like durability, industrial resilience, decorative appeal, as well as temperature and weather resistance. Given the diverse applications and extreme competitiveness, a one-size-fits-all approach is no longer viable, necessitating a multifaceted application structure to meet varying industry and end consumer needs. 

What strategies India should adopt to become a global manufacturing hub for organic and inorganic pigments? What role do you see for VOXCO in contributing to this goal?  

The 'Make in India' and “China plus One” policy has emerged as a catalyst for various industries, bolstering India's position as a manufacturing hub. The government's initiatives have spurred robust growth, with an impact on sectors like chemicals, intermediates and pigments. As a result, India has positioned itself as a key player for these products in both domestic and global markets.

To capitalize on this momentum, certain key areas demand attention from the Indian industry. Firstly, there's a pressing need for backward integration to ensure a stable supply of raw materials and intermediates. This strategic move can enhance self-sufficiency and reduce dependency on external sources.

Secondly, enhancing production efficiency is crucial for sustainable growth. By adopting world-class production parameters and technologies, companies can optimize their operations and meet global standards. This not only improves competitiveness but also drives value for customers.

VOXCO is pursuing a comprehensive growth strategy. This includes four major stages:

Scaling up Production: Recognizing the need for large-scale production to cater to global demand over the next decade, VOXCO is investing in technologies and infrastructure to establish itself as a leading manufacturer.

Building Expertise: With human resources being a critical factor, VOXCO emphasizes team building based on knowledge and expertise, especially in the specialized field of pigment chemistry. Developing an in-house talent pool ensures the company's capability to innovate and adapt to evolving market trends.

Strengthening Brand Image: VOXCO understands the significance of brand reputation and market presence. By forging strategic partnerships and penetrating key domestic and international markets, the company aims to solidify its brand identity built on values and commitment.

Backward Integration and Sustainability: Recognizing the importance of self-reliance and sustainability, VOXCO is exploring opportunities for backward integration into intermediates and sustainable raw materials. This strategic focus aligns with the company's growth trajectory and ensures long-term viability.

By executing these strategic initiatives, VOXCO is poised to further enhance its position as a leader in the global pigment and chemical industry, leveraging the opportunities presented by India's evolving manufacturing landscape. 

Company's total manufacturing capacity? What's your plan for the next two years? 

VOXCO commenced its journey in 2003 under an exclusive manufacturing partnership with CIBA, a world renowned pigment manufacturing entity. By 2009, the company transitioned to direct sales, marking the beginning of a remarkable trajectory marked by significant achievements.

Currently, VOXCO boasts substantial production capacities across certain pigment categories. Its inorganic production capacity, notably for chrome yellow and molybdate orange, stands impressively at 6,000 tonnes per annum, making it one of the largest in India. Additionally, the company's capacity for anti-corrosive pigments reaches 1,200 tonnes per annum, while organic pigments contribute around 1,500 tonnes. Presently, the inorganic segment dominates, accounting for 70-75% of total sales, with production averaging total capacity utilization of 80-85%.

Looking ahead, VOXCO is poised for further expansion and long-term value creation. The company's strategic roadmap includes the establishment of new manufacturing facilities every two to three years over the next decade. With its existing manufacturing presence spanning across four production sites in Vapi and Sarigam, VOXCO is strategically advancing its growth trajectory by pursuing both organic and inorganic routes. 

The inorganic growth would entail acquiring middle-level pigment manufacturing companies within the next three to five years, as a strategic move aimed at unlocking synergies and capturing strategic value propositions within the industry landscape. Through these endeavours, VOXCO is poised to consolidate its position as a formidable player in the pigment manufacturing sector, leveraging strategic acquisitions and organic growth initiatives to drive sustained success. 

VOXCO has acquired land in Saykha. Capex investment in the plant and when are you planning to commission it? 

VOXCO's plans for production expansion have been in motion for nearly a decade, with land acquisition in Saykha – Dahej occurring approximately 7 to 8 years ago. The original timeline aimed to commence production at Dahej was FY 2022-23; however, unforeseen circumstances, including the impact of COVID-19 and fluctuations in the market, led to delays.

Nevertheless, VOXCO has in recent years invested and expanded its capacities both in Vapi and Sarigam production sites. The company anticipates launching the first phase of production, featuring a capacity of 2,500 tonnes for specific organic pigment chemistries in the coming year. Following this initial phase, VOXCO plans to progressively expand its capacity over the subsequent three years, adding another 2,500 tonnes. The total production capacity upon completion will reach 5,000 tonnes, leveraging the 25,000 sq. meter property to its full potential.

In terms of investment, VOXCO is committing a significant Capex of approximately Rs. 60 crores towards this expansion endeavour. Phase 1 will absorb an investment of Rs. 40 crores, with the remaining funds allocated to Phase 2. This strategic investment accentuates VOXCO's commitment to growth and its confidence in the future opportunities in the coloured pigment market.

VOXCO is an exclusive distributor of multiple international companies. Please elaborate? 

VOXCO has forged strategic partnerships with five companies, each serving as an exclusive distributor for the Indian market. One such partner is CINIC- China, a renowned manufacturing company for its high-performance organic pigments catering to high-value applications in coatings and plastic masterbatches.

Additionally, VOXCO collaborates with SNCZ - France, a leading global French company specializing in anticorrosive pigments and environmentally friendly pigments, particularly in the realm of functional chemistry for anti-corrosion applications.

Further bolstering its portfolio, VOXCO has partnered with HABICH - Austria, leveraging its strong manufacturing capabilities for their high-performance inorganic chemistries along with heavy metal free hybrid pigments to offer innovative solutions to its clientele.

Another significant collaboration is with PROMINDSA -Spain a world market leader specializing for Inorganic pigments in protective and marine coatings. This partnership enables VOXCO to offer a comprehensive range of coating solutions tailored to the specific needs of its protective and marine strategic customers.

Lastly, VOXCO is associated with CHTI - China, the second-largest manufacturing company for Titanium Dioxide in China, focusing its sales in the western region of India. This partnership aims to deliver enhanced value to customers through a synergistic approach, leveraging CHTI's products with VOXCO's domestic market presence.

Financial performance in FY 2023-24 and what's your plan for FY 2024-25? 

VOXCO's growth trajectory remains robust, with an annual expansion rate ranging between 10-12%. Notably, in the fiscal year 2023-24, the company achieved a growth of 10% by value and an impressive 20% by volume. This uptick in volume growth was facilitated by a decrease in raw material prices during the same period. However, despite the volume growth, the increase in value was limited to 10% due to the same reason.

Looking ahead, VOXCO anticipates sustained growth momentum. In the coming fiscal year, the company forecasts a value growth of 15%, complemented by a volume growth of 20%. This optimistic outlook is buoyed by the strengthening of new production capacities, particularly in the organic segment.

In terms of revenue, VOXCO recorded approximately US $30 million in the fiscal year 2023-24. Building upon this foundation, the company sets its sights on achieving a revenue range of US $36-38 million in the fiscal year 2024-25.

Central to VOXCO's growth strategy is a steadfast commitment to the 'Make in India' initiative, reflecting the company's dedication to bolstering domestic manufacturing capabilities. This commitment is further underscored by VOXCO's expansive global footprint, with products being sold in over 52 countries.

In terms of market distribution, VOXCO has witnessed robust growth in both domestic and international markets over a period of time. The company is extremely optimistic for its sales in the domestic markets with current 65% revenue from the domestic sales and 35% revenue from the international market. 

The company anticipates a gradual shift in this ratio, projecting a 60:40 distribution between domestic and international revenues as it continues to sustainably grow in near future. 

International markets that you are planning to target to sell your products and how are you planning to target these countries? 

VOXCO's foremost objective is to cater to the evolving needs and delivering value to its strategic Indian customers. This commitment is underscored by the company's strategic expansion plan, which entails increasing production capacities every two years. With domestic customers experiencing steady growth rates of 8-10% annually, VOXCO remains dedicated to meeting their demands and exceeding their expectations.

Looking ahead, VOXCO is poised to extend its footprint beyond Indian shores, targeting key markets in the USA, Mexico, South America, and Europe over the next two years. This strategic initiative aligns with the company's vision to grow its brand image and establish a stronger global presence. 

What new products are you developing at Vapi R&D centre? 

R&D stands as a cornerstone of VOXCO's operations, embodying our commitment to delivering enhanced value to our customers. We keenly observe the evolving landscape of infrastructure and road construction in India, recognizing the growing demand for innovative solutions. Recently, we encountered a challenge in the realm of hot melt road marking products, historically sourced from Canada. 

Moreover, our focus extends to mobility applications, where we have invested significantly in developing high-performance products tailored to meet the stringent demands of this sector. By leveraging and working on technology, we aim to address emerging challenges and capitalize on evolving market trends, positioning ourselves as a trusted partner for mobility solutions.

Additionally, VOXCO places a strong emphasis on functional pigments, recognizing their potential to drive sustainable innovation. Our efforts in this domain include the development of environment-friendly pigments and easily dispersible variants, designed to optimize production processes, reduce energy consumption, and enhance production efficiency. By prioritizing innovation and sustainability, VOXCO would like to remain at the forefront of value creation, continually striving to exceed customer expectations and drive positive change in the industry. 

Initiatives that you have started for enhancing process safety across all facilities and processes to make an operation intrinsically safe? 

VOXCO is dedicated to enhancing value and fostering commitment not just for our esteemed customers but also for our internal team and shareholders. Over the years, we have diligently pursued a comprehensive framework aimed at securing ISO 9000, ISO 14001, and ISO 45000 certifications. Our integrated management systems, coupled with a meticulously structured environment and safety policy, underscore our unwavering focus on safety, health, and environmental concerns. 

Rigorous attention to regulatory compliance further underscores our commitment. We continually prioritize safety, health, and environmental considerations, exemplified by our ongoing coordination of numerous projects across our manufacturing sites. 

Sustainability road map and status of Ecovadis certification in FY23? 

As a Silver Ecovardis certified company, we are committed to advancing our sustainability initiatives. Our goal is to continuously improve our certification grades, striving for higher point scores in the years ahead. 

Operating within the realm of sustainability, we diligently coordinate various process parameters to enhance efficiency within our production systems, thereby reducing manufacturing costs through bringing efficiency in our production and focusing on utilization of renewable resources. 

Environmental sustainability should be important to every human being and in our areas of production we establish annual benchmarks to guide our progress and work towards sustainable practices. 

CSR plans with respect to betterment of rural livelihood and education? Projects implemented in FY 2023-24 and plans for FY 2024-25? 

Our core ethos at VOXCO revolves around enriching lives and fostering unwavering commitment to all stakeholders. In line with this vision, we've established the LRC Trust, generously funded by VOXCO and like-minded individuals. This trust is dedicated to promoting empowerment, sustainable development, and social justice. Our primary focus areas encompass providing access to education, healthcare, and livelihood opportunities.  

Notably, we've been deeply involved in advancing girl child education in rural areas of South Gujarat region, striving to break barriers and create avenues for empowerment. Additionally, our efforts extend to healthcare, exemplified by our cataract operation camp last month, which have positively impacted more than 500 individuals, underscoring our dedication to tangible, impactful initiatives within our communities. 

July 03, 2024

Emerging trends/challenges in the Specialty chemicals in 2024 and how LANXESS India is planning to circumvent it? 

Firstly, we are well aware that Artificial Intelligence (AI) is going to bring about transformational changes and exciting opportunities in the chemical industry. We are trying to leverage it and are actively working on the same. We will be doing a pilot scale in India and take that learning to a global level. AI can be used for forecasting, improving productivity, predictive maintenance, supply chain management and also order management to bring operational efficiency. That is one emerging trend we see and we are trying to leverage it fully.   

Secondly, LANXESS has transformed into a specialty chemicals company and with headwinds in the chemical industry, we are also working on the Excellence initiative. This will be rolled out in a phased manner till end of Q1 2025. We are going to leverage it to become more efficient for our customers, improve customer management, operational management, logistics, supply chain, procurement and innovation. The focus of innovation is mostly on the development part and not the research part. 

In terms of challenges, there is a lot of geopolitical tension because of fluctuations in energy prices and recession in Europe. I think that's also impairing logistics because we are seeing that the shipment is taking a longer route, longer time, and is becoming more expensive. We are trying to circumvent it to the extent possible. Comparatively, the demand in the Indian market is still stable but prices are down because of distribution from China but we are trying to keep our top line intact and also trying to improve the bottom line. 

Key achievements of LANXESS India in FY 2023-24 and plans for FY 2024-25?

LANXESS is a leading specialty chemicals company, and our core business is the development, manufacturing and marketing of chemical intermediates, additives and consumer protection products. For us, safety is a core value and we have done very well on this front in the last couple of years. Our focus is on asset utilization, and it was quite good last year.  

For our safety and sustainability initiatives, we have been acknowledged and rewarded by various industry bodies and associations. In the recent past, we received the FICCI Chemicals & Petrochemicals Award for Sustainability – Excellence in Safety. We also got the prestigious CII Western Region Award for Excellence & Innovation and BCCI Award for Workplace Safety.  

Apart from this LANXESS India also received the Global CEO Safety Award 2022. This is an internal award by LANXESS presented to teams who showcase exemplary commitment towards safety over the year and drive successful initiatives and contributions related to safety occupation at LANXESS. The focus is on preventing accidents and incidents by sustainable implementation of safety processes. 

Going forward in FY 2024-25, we would continue to focus on safety and sustainability. Our Excellence initiative is currently in the process of being rolled out and has been very strategically devised keeping in mind that both India as well as the chemical market is on a growth trajectory. Our board members are very excited about the growing India market and we are aligning and adopting strategies for further growth including upgrade of the ERP system.  

We are looking at both organic and inorganic growth in the coming years. More organic, as the listed companies are overvalued at the moment. Since 2019, we are increasingly looking at finding attractive companies for takeover in all the segments where we are present like - paints and coatings, polymer additives, water treatment and detergents, tyre and rubber industry.  

LANXESS Jhagadia has three production facilities for 3 BUs – Liquid Purification Technologies (LPT), Material Protection Products (MPP), and Rhein Chemie Additives (RCA). How are things progressing on BU fronts? New initiatives at Jhagadia?  

The site in Jhagadia is a key manufacturing base for LANXESS globally and has been built to world class standards. The production facilities as well as the utility services at the site ensure safe and environmentally responsible operations. 

The National Chemical Safety Committee recently visited our Jhagadia site and appreciated the safety efforts undertaken by LANXESS.  

Going forward, we will continue with our focus on Safety. There are many leading indicators that have been set up and actions on finding out near miss incidents and reporting thereof is encouraged. Every employee has a target of reporting near miss incidents and all managerial employees have to conduct periodical safety dialogues. They observe the work and discuss whether it is being done in safe or unsafe manner and then start with a positive dialogue on how it could have been done better.  

We have also acquired an additional five-hectare land keeping in mind the long-term growth plans.  

LANXESS India completed and put into operation the expansion of the Rhenodiv production line in Jhagadia on February 1, 2024. What's the update on this front?  

We see a potential good market here in India. Currently, we have commissioned the plant and the new Rhenodiv grades are successfully undergoing approval tests at various Tyre companies, a fundamental step towards ensuring product excellence and market readiness and we expect to receive full approvals by the end of Q2.

The product will not just be for India but also for the subcontinent including other Asian countries. 

What strategy India should adopt to become a global manufacturing hub for LPT, MPP and RCA chemicals? LANXESS India's role for making India a global manufacturing hub? 

The global chemical industry is ~US$ 5 trillion in comparison, the Indian chemical industry that is ~US$ 180 billion, which is roughly about 3%. It is estimated that the industry will be having a CAGR of 10% plus in next few years. Also, currently the trade deficit of US$ 20 billion gives us two opportunities - either to improve exports in the selected areas or reduce imports by becoming self-sufficient.  

China plus one strategy was there for quite some time, but it didn’t gain much traction in the past. Now we see it gaining traction due to a lot of initiatives taken by the Indian government. India has a large domestic market including a huge middle-class population as a lot of people have been pulled out of poverty. The pull factors are - change in the bankruptcy code during 2016, high quality infrastructure development initiatives and a large pool of manufacturing talent in terms of good engineers.  

Having said that India must bridge the gaps in building blocks of raw materials. The chemical industry is looking for good PLI policies. While ease of doing business has improved significantly, it needs to be improved further. This will surely help India to become a global hub for chemicals. 

LANXESS AG CEO & Chairman of the Board Management, Matthias Zachert during his recent visit to India was very impressed to see the development and was excited over upcoming infrastructure investments. He commented that LANXESS is focused on growth in North America and Asia, particularly India. This marks a shift from just focusing on China to prioritizing India. I think it's a very powerful and encouraging statement.  

What’s the sustainability plan for LANXESS India in FY 2024-25? 

LANXESS is highly committed to sustainability, and we have launched many initiatives in this direction that we are very proud of; however, as we are aware, sustainability is a journey and not a destination. In terms of climate change, we have done a lot on climate change, water utility management, water stewardship and employee safety. 

In India, we have achieved about 84% of climate neutrality on annualized basis for Scope 1 & Scope 2 emissions and have significantly reduced the emissions at our plants. We made an inventory of emissions at Jhagadia and Nagda plants. After creating the inventory of emissions, we then looked at process optimization and process improvement. We have done extensive energy audits to bring down the specific consumption of energy. At Nagda, we are generating our own electricity and at Jhagadia we have done a green power purchase agreement.  

LANXESS India’s plan to achieve climate neutrality by 2040? Milestones that you have set for achieving it and plans for FY 2024-25?

Globally, we are aiming to achieve climate neutrality by 2040, completely eliminating Scope 1 and Scope 2 emissions. Further, we have prepared two guidance documents - First, is decoupling emission growth. Here the growth has to happen, but emissions have to be controlled. Second, is pursuing technology innovation. Here we have to be innovative and see how to keep the growth intact yet reduce the emissions. 

LANXESS is aiming for 30% women management positions globally by 2030. What’s LANXESS India’s plan on this front? 

LANXESS has been globally committed to diversity and inclusion because we feel that diverse teams can make better decisions and also drive innovation. I think the development and training opportunities have been designed in such a way that it is attractive for women employees. Balancing work between personal and professional life, flexible working and also knowing other colleagues might be needed. Gender sensitive policies, equal pay for work of equal value and also zero tolerance for sexual harassment at workplace have been implemented. We have created an internal platform called WinX for imparting skill and empowering women to know their concerns. About 10% of our workforce in the India organization are women. We have identified the gender-neutral positions where we can take women based on competencies. With this plan in the picture, I am sure 30% women workforce globally should be achievable by 2030. 

Key CSR initiatives of LANXESS India in FY 2023-24? Plans for FY 2024-25? 

In terms of CSR, our focus areas are education, climate protection, water and culture. We also focus on skill development, employability and healthcare. We engage in sustainable development projects that aim to uplift local communities, promote social welfare, and protect the environment.  

In Jhagadia & Nagda region, over the last few years, we have been working on various projects like solar roofing of government schools, solar lighting in villages, facilitating digital smart class for municipal schools, providing basic educational amenities like school bags to municipal schools, vocational training and skill development etc. We are closely involved in uplifting these government schools. Apart from this, we have also supported the communities in times of need by mobilizing our resources and providing them with essential relief material during natural disasters like floods.  

In 2024-25 also, we will continue to support the communities through our CSR interventions with clear focus on topics of education, climate protection and skill development among others.  

Initiatives taken by LANXESS India for enhancing process safety across all facilities/processes to make operations intrinsically safe?

On quality and safety, we share the same standards as followed by any developed and developing countries. Process safety is an important vertical of safety and thus plants are designed in a way that these are intrinsically safe. For that we have a muti-disciplinary team consisting of different experts who identify the hazards and decide on measures. That becomes a basis for getting the licence to operate because without that we cannot start the plant.  

There are other important factors under Process Safety Management (PSM). One is the plant asset integrity where we do regular check-up and keep the assets intact. Second important part is the human aspect where we are imparting training and sharing the standard operating procedures with all our employees. After we impart the regular training, we also do an efficacy check to see how much has been understood by the employee. Then there are digital safety audits where the global experts come down and see what mitigation measures are in place and then give rating based on that. We firmly believe that employees should remain safe and go back home safely. 

How do you see the chemical sector outlook in 2024?

India's outlook is good as the market is still intact except the fact that we are experiencing price pressures due to distribution from China. We sincerely hope that the Chinese economy picks up so that distribution comes down and the prices improve. While the prices are improving, we need to evaluate how sustainable it is. Globally, we are seeing a little bit of light at the end of the tunnel but how much of it translates into business, needs to be seen.

July 02, 2024

Numaligarh Refinery Limited (NRL) registered the highest-ever PAT since its inception at Rs. 3,703 Crore in FY 2022-23. How has the company performed in FY 2023-24?  

FY 2023-24 ended on a positive note for NRL in terms of physical and financial performance. This is despite a setback in the form of a fire during the first quarter of the FY 2023-24 while the refinery was getting back to operations after a planned turnaround of about a month. Refinery turnaround involves inspection and maintenance of all units of the refinery in a holistic manner to ensure its smooth and efficient functioning and is carried out at regular intervals of four years. 

Despite this unforeseen adversity and a valuable quarter lost during the beginning of the FY 20233-24,  the company  bounced  back with resilience and the refinery was able to record a crude throughput of 2,510 thousand metric tonne, equivalent to 100% capacity utilization for 10 months. 

Annual Accounts closing is under progress and we are hopeful that the financial performance will reflect the physical performance. 

Current production capacity of NRL and how has it changed over the years?  

The present refining capacity of NRL is 3 million tonnes per annum (MMTPA) which is the design capacity since inception and commencement of commercial production in the year 2000. However, the company has embarked on a major expansion drive to treble its refining capacity from 3 MMTPA to 9 MMTPA. We are encouraged by the performance of the refinery so far and are aiming at crossing the design capacity of 3 MMTPA and achieve 110% capacity utilisation this year. 

Latest development on NRL's expansion? Total capacity post expansion and how is this going to impact NRL’s overall performance?  

The ongoing Numaligarh Refinery Expansion Project (NREP) to treble the capacity from 3 MMTPA to 9 MMTPA has achieved around 60 per cent progress on ground. Further, as part of the integrated refinery expansion plan, a 1,640 Km crude oil pipeline is being laid from Paradip to Numaligarh, the progress for which is around 70 per cent on ground. The scheduled completion of NREP is December 2025 and we are mobilising all our resources and moving ahead aggressively to achieve the target as per set timelines. 

Enhancement in refining capacity is expected to have a multi-pronged impact not only for NRL but the entire industrial ecosystem. With increased refining capacity, NRL will be able to contribute in enhancing regional energy availability apart from venturing for exports to neighbouring countries. It is expected to boost economic growth in the region by creating direct and indirect employment opportunities as well as growth in ancillary industries.  

NRL has announced Capex of Rs. 35,000 crore in the next 5 years. Can you please elaborate on this?  

Refinery project is almost 60% through on ground while the Paradip Numaligarh Crude Oil pipeline has achieved a progress of 70%. Corresponding amount of capital expenditure in terms of financial commitment has been made. These form a major part of the Rs. 35,000 crore investment which will continue till the end of 2025. NRL is also putting up a Polypropylene unit of capacity 360 KPTA for which environmental clearance is awaited. Once on board, another Rs. 7,000 crore would be apportioned from the above Rs. 35,000 crore capex proposed. 

What is the development of setting up a 2G bio-refinery?

The 2G bio-refinery plant at Numaligarh which is designed to produce 49,000 metric tonnes of bioethanol has already been mechanically completed during the end of March 2024; with some residual jobs remaining. It is a pretty complex project and therefore would typically require 3 to 4 months for commissioning. All out efforts are being undertaken to commission the plant quickly and safely tentatively by mid July 2024. 

The 2G bio-refinery is unique in the sense that bamboo biomass is being used as a feedstock, which no one else in the world has ever tried. The North East of India has abundance of bamboo availability which is being tapped for the purpose. The bio refinery would require around 300,000 metric tonnes of dry bamboo annually. In order to maintain unhindered supply, we have also carried out major tweaking in the whole supply chain of bamboo. Our aggregation model is about offsite chipping of the bamboo and a great deal of value addition will happen at the village level. 

Other than bioethanol, a chemical called furfural and acetic acid would be produced in the process, which would ensure the economics of the project. The Government of India has granted a Viability Gap Funding (VGF) of around Rs. 150 crore for the project.  

NRL has signed a pact with NTPC for a green chemicals project. Please share details? 

Banking on the experience gained by NRL so far, NTPC has signed a MoU with our company for collaboration and knowledge sharing in setting up a biorefinery like the one we are putting up in Numaligarh. The biorefinery will be put up in   Salakati, West Assam and a separate catchment area for growing bamboo has been identified. 

Biofuels have a great future ahead as is manifest by the focus it has gained in recent years not only in the milieu of the Government of India, but globally. NTPC can also explore the opportunity to utilise the lignin from bamboo and feed it into their plant along with coal, to make their electricity greener. 

NRL and Inland Waterways Authority of India (IWAI) has inked a pact for petroleum products transportation. How is the progress on this front? 

Most of the over dimensional and overweight consignments for NREP have been transported to Numaligarh utilising waterways. Most of these equipment are being produced in Dahej in Gujarat along the West Coast of India; then being transported through big vessels up to Haldia to be trans-shipped onto river going barges that take NW2 via Bangladesh to reach Assam.  

The consignments are finally offloaded at a location very close (about 10 Km) from our refinery wherein a jetty has been constructed on the river Dhansiri, a tributary of the mighty Brahmaputra. However, in order to navigate this route, we need waterways and adequate drafts around the year.  

I take the opportunity to thank IWAI for their support in facilitating the above due to which we have been able to transport consignment of weight upto 1,500 tonnes along this route. Moreover, the current infrastructure will pave the way for future transportation of materials as well as products through the river route that would happen mostly downstream. NRL will produce Polypropylene in the future while solid sulphur is already being produced. Eventually, the river route is expected to be utilised to transport a variety of refinery products, other than transporting petrol and diesel. 

The company also opened its first overseas office in Bangladesh. Is there any plan to expand more overseas offices? 

NRL has a pipeline named India Bangladesh Friendship pipeline running up to Parbatipur in Northern Bangladesh from its terminal at Siliguri, West Bengal for transportation of Diesel. We are also exporting Paraffin Wax to Bangladesh and have plans to export Polypropylene which has a good demand in Bangladesh, mainly to meet its packaging needs for cement and readymade garment industries.  

To expand our footprints and export more products to Bangladesh, we thought it prudent to open an office in Dhaka. We are also exploring markets in Nepal and Myanmar and tap its potential for NRL products. 

How does NRL contribute to the socio-economic development of the region?

There are three to four key contributions of NRL towards socio-economic development of the region. 

 Firstly, direct and indirect employment to hundreds of youths from the region. Secondly, we are the highest tax payers in the North East region and the Income Tax Department has repeatedly recognized the company on this account. Thirdly, NRL has been able to transform the socio-economic status of the region through its social initiatives that are undertaken under corporate social responsibility. 

Fourthly, we operate a 100 bedded multi-speciality hospital called VK NRL Hospital within our township premises; that has been able to deliver quality health care in the region since the year 1998. The hospital also conducts mobile medical camps, delivering healthcare to the doorsteps of the community in 70 villages covering a population of 80,000 rural residents within a radius of 10 Km of the refinery. We have also set up a VK School of Nursing that provides quality Nursing Education to girls from the region to make them self-sufficient and capable of earning their own livelihood.  

What are some of the major challenges faced by NRL in its operations?

Operating expenses per barrel of crude oil for a 3 MMTPA refinery is very high since manpower and associated expenses are almost at par for a refinery with higher capacity. We are hopeful to overcome the challenge when our 9 million tonnes refinery is commissioned by the end of the year 2025. 

Also, in order to ensure long term growth and sustainability, we are planning to put up a petrochemical complex for producing Polypropylene, which is the road ahead for all existing refineries. This is expected to attract more and more ancillary industries in the domain of chemicals, especially niche chemicals. Also, considering Government of India’s mandate of 1% blending of sustainable aviation fuels (SAF) to Aviation Turbine Fuel ( ATF) by 2025 in line with global sustainability standards, NRL is exploring the means to produce SAF. 

We are tucked in one corner of the country and have a major challenge of high transportation (freight) costs for our products. But fortunately over a period of time, with phenomenal economic development, North East is witnessing double digit growth in both diesel and petrol demand, easing our logistic issues. For example, when we first started marketing our products in the year 2000, the geographical range was 1,500 - 2,000 km for which we had to bear substantial freight under recovery. Now, the product envelope has shrunk to almost around 700 - 800 km and therefore our freight economics have improved significantly. As we diversify into more products, we are hopeful that we are able to meet the growing demand for our products in the region. Also, we are focussing on export to our neighbouring countries like Bangladesh, Bhutan, Nepal and Myanmar which are geographically closer. 

NRL plans to achieve net zero by 2038. Can you discuss the steps taken by NRL to ensure the safety and environmental sustainability of its operations?

Our first and major initiative is the carbon neutral Bio Refinery in Numaligarh, which is under commissioning. The only carbon dioxide emissions that take place are during the fermentation process; when glucose gets converted to ethanol. We are planning to capture this carbon dioxide in liquid form. 

Another green initiative is putting up a 2.4 KTPA green hydrogen plant; which is expected to be commissioned by June 2025.

Several other technologies are being adopted to make the refinery fuel efficient and green. By reducing fuel consumption for running the refinery, we aim to reduce greenhouse emissions.  

We are also creating a huge carbon sink by afforestation of hectares and hectares of land in different districts of Assam. We have already acquired around 70 hectares of deforested land and developed three major nurseries for generating bamboo saplings in collaboration with the Government of Assam. Another MoU with the Assam government for afforestation of 28 hectares is on the cards.  

Going forward, we are planning to capture carbon dioxide which gets generated in the process; to reduce Scope 1 emissions.

To create pathways to meet our net zero targets, we are in serious discussions with major players in the field.  

What role does NRL play in the global energy transition and shift towards cleaner and renewable energy sources?

As stated earlier, we have embarked on a 2.4 KTPA green hydrogen plant project. For that purpose, we need around 18 MW of electricity from round the clock green electricity sources. We are exploring opportunities for power purchase agreements for green electricity. 

June 27, 2024

Our core group strength and synergy are in manufacturing complex Fluorine & chemical derivatives such as Fluoropolymers and Fluoroelastomers

How has the performance been of Gujarat Fluorochemicals Limited (GFL) in 2023-24? What is the expectation from 2024-25?  What are the key achievements in 2023-24? 

The year 2023-24 has been challenging overall for both the chemical industry as a whole and for GFL. One of our most important verticals – our Fluoropolymers segment – was impacted by destocking in Europe. As a result, our results for FY 2023-24 were muted as compared to the previous year. 

However, moving forward, the destocking phenomenon seems to be phasing out and we expect to see continuous growth quarter on quarter from hereon. FY25 is also expected to reflect some of the positive impact from the exit of legacy players in the Fluoropolymers segment. 

Our EV business, GFCL EV, saw the commissioning of the initial phase of its integrated battery materials manufacturing facility. With battery agnostic offerings covering both Lithium Iron Phosphate (LFP) and Nickel Manganese Cobalt (NMC) batteries, the GFCL EV product portfolio caters to around 40% value of LFP battery cost. With a CAPEX of Rs. 6,000 crore already announced for the next 3 years, we aim to tap significant global opportunities presented by the Electric Vehicle (EV) and Energy Storage System (ESS) ecosystems. 

What are the emerging challenges and opportunities for the EV market in India? 

Customer perception of range anxiety remains a significant hurdle in India's EV adoption journey. The limited charging infrastructure adds to this worry and poses a challenge to widespread EV adoption. 

Additionally, the price disparity between internal combustion engine (ICE) vehicles and EVs remains a barrier for many consumers. However, fostering domestic manufacturing and incentivizing local production of EV components can drive down production costs, making EVs more affordable and competitive in the Indian market.

The opportunities mainly involve government initiatives aimed at curbing vehicular emissions, such as the implementation of policies like the Production Linked Incentive (PLI) scheme for Advanced Cell Chemistry batteries, coupled with state-level subsidies to facilitate the establishment of electric vehicle manufacturing, underscore a strategic focus on sustainability and innovation. These measures, alongside the burgeoning domestic market spanning various segments including passenger vehicles, two and three-wheelers, present a landscape ripe with opportunities for growth and development within the EV sector.

What is the current market demand for battery chemicals, and how does GFCL EV Products plan to capitalize on this demand?

In the past few years, a number of factors have impacted the global EV markets and hence the battery chemicals market by extension. Some of the key markets are now beginning to mature and what they need are reliable, uninterrupted supply chains together with availability of affordable battery metals. Global disruptions like the Russia-Ukraine conflict have impacted both these areas. Add to that the investments companies have already made in capacity and technology development, and the impact on prices and availability cannot be missed.

On the other hand, the global focus on environment protection and promotion of EVs has resulted in significant expansion in the global EV market. Nearly 14 million new electric cars were sold worldwide in 2023. 

In the face of these global scenarios, India’s EV market has been remarkably resilient. EV adoption in India is still in its nascent stages, but growing leaps and bounds. Driven by adoption of two-wheeler (2W) and three-wheeler (3W) segments, EVs are projected to account for around 40% of total vehicle sales in India by 2030. For the battery and battery chemicals market, this means that the demand will remain robust, which is good news for companies like GFCL EV. 

With our product offerings in the areas of Cathode Active Materials, Electrolytes, Battery Binders and Additives, and the dependability of GFL’s Fluoropolymer expertise and supply chain reliability, we are strategically positioned to capitalize on this enhanced demand both in India as well as globally.

GFCL EV Products Ltd’s vision is to evolve as a respected EV and Energy Storage components company. What is your strategy to achieve this vision? 

We aspire to establish ourselves globally as a reputable company specializing in EV and ESS components. Our strategic approach to realizing this vision involves becoming a leading material solutions provider to the burgeoning battery manufacturing sector in India, thus facilitating the widespread adoption of EVs and actively contributing to the reduction of carbon footprints.

To achieve this, we are committed to aligning our growth trajectory with market demands, while judiciously allocating resources, including capital investment, to support our expansion and innovation efforts.

The company recently announced an investment of Rs 6,000 crore over the next 4-5 years in EV and ESS battery solutions. Major chunk of the investment is earmarked to set up a battery chemicals factory in Gujarat. Could you please share details with us? 

In the preceding two financial years, our company has made considerable investments to increase our production capabilities across both intermediary and finished product categories in the lithium-ion battery materials sector. Notably, in the last quarter of the fiscal year 2024, we successfully commissioned two new plants dedicated to battery materials production.

Moving forward, our strategic direction entails aligning our growth trajectory with market demands. We intend to judiciously allocate capital expenditure (CAPEX) towards augmenting our manufacturing capacities to meet the evolving needs of the market. 

Can you also outline the company's manufacturing capabilities and capacity for battery chemicals?

Our core group strength and synergy are in manufacturing complex Fluorine & chemical derivatives such as Fluoropolymers and Fluoroelastomers. Within this niche, we proudly stand as one of the select global players, distinguishing ourselves as the sole Indian manufacturer with exports reaching mature markets.

Regarding our battery chemicals capacity, our existing infrastructure is poised to support approximately 5~6 GWh of battery production. This capability underscores our commitment to diversifying our portfolio while leveraging our core competencies to contribute meaningfully to the EV industry.

How are you going to differentiate your battery technology from other industry players?

We have implemented rigorous quality systems at every stage of production, ensuring that our solutions consistently meet the highest standards of battery grade purity, quality and reliability.

This expertise uniquely positions us to provide material solutions that prioritize both quality and cost-effectiveness. Whether catering to domestic or overseas markets, our commitment to excellence allows us to stand out among competitors, offering innovative solutions that address the evolving needs of our customers with precision and efficiency.

Can you provide an overview of the types of battery chemicals that GFCL EV Products aims to specialize in and their applications?

GFCL EV Products specializes in various segments of battery materials, each catering to specific applications within the electric vehicle and energy storage sectors.

In the cathode segment, we offer Lithium ferro phosphate (LFP). In the electrolyte segment, we are present in both the salt (LiPF6) and finished electrolytes. We intend to produce two key additives in the electrolyte segment and we offer PVDF/PTFE in the binder category.

By strategically focusing on these key segments, we ensure a comprehensive offering that meets the diverse needs of battery manufacturers, supporting the advancement and adoption of electric vehicles and energy storage solutions.

You have also announced setting up a cell performance testing lab to drive innovation in EV/ESS applications this year. Please share details with us? 

We are happy to announce the establishment of our Performance Testing Lab (PTL), scheduled for commissioning in the third quarter of this fiscal year. Equipped with state-of-the-art equipment, our PTL will facilitate comprehensive cell-level testing, encompassing both coin and pouch cells. Through this, we also aim to foster collaboration with our customers, enabling us to tailor material solutions to meet their specific cell requirements effectively.

How does the company ensure the sustainability and environmental friendliness of its EV and battery products?

Ensuring the sustainability and environmental friendliness of our EV and battery products is a paramount commitment for us. We were among the first companies in India to receive carbon credits issued by the United Nations Framework Convention on Climate Change (UNFCCC) in 2006, demonstrating our early dedication to environmental stewardship.

We adhere to various regulatory requirements, including Environmental, Social, and Governance (ESG) standards. Our compliance measures include:

• ISO 14001:2015 certification for Environment Management Systems, ensuring that our environmental impact is rigorously managed.

• ISO 9001:2015 certification for Quality Management Systems, guaranteeing the quality and reliability of our products.

• Responsible Care certification, underscoring our commitment to the safe and sustainable handling of chemicals.

• ISO 45001:2018 certification for Occupational Health & Safety Management Systems, prioritizing the well-being of our employees.

• SA-8000 certification for Social Accountability, emphasizing our commitment to ethical labor practices.

• ISO 26000 certification for Social Responsibility, ensuring that we operate ethically and contribute positively to society.

• ISO 20400 certification for Sustainable Procurement, affirming our dedication to environmentally and socially responsible sourcing practices.

By diligently adhering to these standards and certifications, we uphold our responsibility to the environment, society, and future generations.

With the increasing focus on sustainability, how do you see the future of electric mobility evolving, and where do GFCL EV Products fit into this future landscape?

We strongly believe that the future of electric mobility, both in India and globally, is very bright and promising. The transition from Internal Combustion Engine (ICE) vehicles to Electric Vehicles (EVs) is experiencing exponential growth, spanning both personal and mass transportation sectors within India.

Lithium-ion batteries (LiB) have emerged as the leading energy storage solution globally, powering the EV revolution, while alternative technologies like sodium-ion batteries are also advancing. In this landscape, GFCL EV Products is positioned to play a pivotal role by providing innovative material solutions that contribute to a cleaner and greener planet.

In your opinion, how crucial is EV battery recycling in mitigating the environmental impact of electric vehicles?  

Definitely, EV battery recycling plays a crucial role in mitigating the environmental impact of electric vehicles. In fact, this practice has gained significant traction worldwide, particularly in markets such as China, Japan, and Europe, where initiatives for EV battery recycling are already underway.

By recycling EV batteries and extracting precious metals such as Lithium, Cobalt, and Nickel, we can effectively reduce the environmental footprint associated with battery production and disposal.

What partnerships or collaborations has the company established to support its EV and battery initiatives?

The company has cultivated in-house capabilities in Fluorine chemistry over the past three decades.  With a combination of in-house R&D and partnership with external consultants, we enhance our expertise and bring innovative products and processes to fruition.

Moreover, we continuously seek partnership and collaboration opportunities that promise to strengthen our technology, quality standards, output, and overall solutions for our customers.

June 25, 2024

What are key trends impacting the Green Chemicals Space? How do you see Sustainability shape the Chemicals, Performance Chemicals and Pharmaceuticals Sector? 

The term ‘Green’ has a varied interpretation as used in various contexts by different stakeholders and companies over the years. The evolving parameters and clearer definition will continue to drive awareness, consumer choices, innovation, regulation, and policy as well as business strategy. 

There are various aspects of a product being green and the understanding as well as expectations from various stakeholders are also evolving. One important aspect which has been conventionally considered “green” is something that is manufactured from bio-based or renewable. Another aspect is how much toxic load is generated by the product and the resulting environmental impact that it creates. Given the increased focus and awareness on greenhouse gas emissions and the resultant climate change impact, carbon footprint has become another important aspect. It encompasses the complete emissions from cradle-to-grave including Scope 1, 2 and 3. Then, there are other aspects of sustainability such as land use and impact on land, food, and water.  

Whilst it would be ideal to meet all possible criteria, in reality, various products and processes will score differently on different criteria and the evaluation itself is complex. Therefore, for example, on one hand something may have a lower carbon footprint it may not have such a good score when some of the other dimensions are considered and vice versa. We will see the evolution of systems and standards for a rigorous evaluation of ‘Green’. I believe with the world being increasingly interconnected, huge data generation and processing and rapid evolution of digital technologies including AI and Quantum computing, we would be able to better assess, quantify and define. 

Today sustainability is no longer merely something good-to-do that only responsible companies focus much on. It is increasingly becoming a key strategic consideration for all. The sustainability challenge is indeed extremely serious and requires immediate attention at all levels. It is accordingly reflected in growing awareness and expectations from various stakeholders. The pressure of public opinion and stricter regulations are happening faster than expected in India. In some cases, the new standards are even tighter than other parts of the world.  

You may observe that an Industry that has a perception having an adverse environmental impact does not receive as much focus and policy support. It is, therefore, important the chemical industry works towards correcting that perception. I believe the chemical industry has a crucial role to play in helping the world address sustainability issues. This is not only in terms of addressing its own challenges but also by providing new products, processes and solutions to the world. That presents a huge opportunity for innovation and building great businesses which create knowledge based and offer sustainable models for India as well as the world. 

India has some great advantages that include diverse feedstock, huge market, affordable talent, lower project cost etc. Changing geo-political dynamics, thrust on Make in India, India’s push for green energy, green hydrogen, carbon capture technologies and a thriving startup ecosystem bode well.  

We will witness disruptive changes due the sustainability requirements as well as due to new technologies including digital. Ones who respond well will have great opportunities. Others will have an extremely high pressure to either transform or get acquired or else be out of business. 

Challenges for Bio-Based Chemicals 

The green chemical space has its own challenges. From our perspective, Ethanol is an important feedstock for chemicals but there is growing demand for blending. Since it got coupled with crude, it is no longer a cheaper feedstock. We have to compete with chemicals which are based on crude, but the cost of sourcing green material has increased due to a variety of reasons. That has posed a significant challenge. 

Meanwhile, sourcing of Ethanol is important. India’s Ethanol Blending Programme has some potential repercussions too. Currently sugarcane, molasses and rice are the major feedstocks. These crops are water thirsty and there is an overlap with the food chain. We are talking about corn and biomass as alternatives. Biomass will be an important feedstock but again it will compete with the energy sector and excessive use of biomass will pose another challenge because we will be taking out organic matter and nutrients from the soil. Moreover, some of the technologies / supply chains e.g. cellulosic and captured carbon are either new or yet to be established in terms of commercial viability. 

What is the big opportunity in Bio-based Specialties? Where does India Glycols fit into this ecosystem?   

I would like to speak more broadly on green chemicals of which bio-based specialties are a part of. One of the opportunities has been the fuel blending programme. This created an opportunity to produce Ethanol through various routes. In addition to molasses, the government also made available damaged grain as raw material. Ethanol, CNG and methanol would be interesting green feedstock in future to produce a whole range of hydrocarbons through alternate processes and technologies.  

India Glycols is unique in the world to produce ethylene, ethylene oxide and several derivatives like glycols, green solvents, and specialty chemicals that have a better environmental impact profile. This will drive the opportunities for bio-based chemicals. However, carbon capture materials, cellulosic materials will become potential feedstocks for green chemicals in future. 

Green materials can be classified into conventional and novel materials. The first one comprises conventional materials but made from greener feedstocks such as making PTA for polyesters using bio-based feedstocks like bio-based MEG. These materials have a lower carbon footprint but still have some of the issues like biodegradability and environmental impact like micro-plastic issues etc. 

The next big step will be novel materials which are not only made from greener feedstocks but have other greener attributes like biodegradability and lesser adverse impact on land, water, food chain etc. For example, some work is being done on polylactic based and other novel polymers. However, while polylactic acid-based materials offer better biodegradability, it does not have the same level of heat tolerance and tensile strength. Therefore, continued innovation for improving functional performance as well affordability will be an important driver.

In the times to come, apart from regulations, wider introduction of some forms of carbon tax and/or penalties on one hand as well as wider adoption of carbon trading will be an important driver for adoption of greener materials and processes. 

How has India Glycols performed during FY 2023-24 and what are the plans for FY 2024-25?  

 Due to Covid and other factors, the last 2 to 3 years were quite disruptive for several industries including India Glycols. Sharp increases in feedstock costs, energy costs and freight costs posed a challenge. Imported ethanol prices went up. Imported ethanol price went up from approximately Rs. 35 to Rs. 70 per litre landed at its peak. The price has seen a correction but are nowhere close to the earlier levels which had been stable by and large for many years prior to the period of sharp escalation. Secondly, many countries are looking at their own energy security due to the volatile situation in the Middle East and Russia – Ukraine issue. Thirdly, there are energy transition hiccups in many parts of the world as the energy prices went through the roof particularly in Europe thus affecting the entire energy ecosystem which also impacts the global ethanol prices. 

These factors posed a significant challenge in managing our prices and position our products against crude based products which even became cheaper on the other hand. Now, we have taken several actions. We invested in grain-based ethanol capacities. We now have a wider range of options to manage our cost base apart from importing ethanol. In addition, Biofuels presented an additional opportunity for sales as well. The situation however is dynamic, and we are able to choose various options based on best viability. 

We have three broad end use areas for our ethanol i.e. Chemicals, Biofuels and Potable Spirits. This has made the business more resilient in terms of back-end feedstocks as well as frontend usage areas.  

Our diversification into potable spirits has also helped to derisk the business and improve business performance. Last year i.e. FY 2023 the top line witnessed a slight decline, but it had seen a good improvement in the EBITDA of around 15%. The performance for 9M for FY 2024 has been much better with a revenue growth of ~ 17% and EBITDA growth of ~ 45%.  Overall, we expect a good year. 

We have been focusing on leveraging our strengths including our sustainability credentials, strong manufacturing footprint, strengths in product, process and application development and a strong relationship with good, reputed partners. 

With all these, we are also looking at new value-added chemicals. We have set up a new R&D Centre and expanded our manufacturing for a range of value-added chemicals like Oil Field Chemicals, Carbon Smart Materials, Green Solvents, Speciality Esters, Biopolymers and Amines etc. This is with the aim of improving the quality of the business as well as creating new areas for growth. 

What strategy should India adopt to become a global manufacturing hub for bio-based Specialties, Performance Chemicals, and Pharmaceuticals? What role does India Glycols see for itself in making India a global manufacturing hub? 

We need to transform our organizations towards having a culture of learning and innovation, high standards and excellence. We have come from a past where we would get a loan, licence, put up a factory, have some people and start production by getting technology from MNCs. Today licenses and capital are not the real constraint and it all about investing in great talent, excellence, and innovation. This is crucial to create a knowledge-based organization for driving innovation to meet unique and arising needs for the India as well as the world and deliver sustainable products. This will continue to be an important area for the Indian Speciality Chemicals Industry. 

We also need to strategize in a way that can address India's challenges, encash opportunities and leverage India’s advantages in terms of talent, raw material, feedstocks, and capital cost. Another area that needs attention is the availability of feedstock for base materials which are either not produced or not competitively produced. For the pharmaceutical and agrochemical industry, the majority of API (key starting materials) are still being imported from China. This is a concern as well as an opportunity. 

There is also a need to build a good manufacturing ecosystem. I have wondered why India has not created parks like Jurong Island, Singapore. If you look at it, India is in a much better position in almost every respect to create several manufacturing set ups like or better than Jurong and make them much more successful. India is better placed in many respects be it access to feedstocks, access to markets, quality of talent, cost of talent, cost of doing projects, availability of land, water and other resources. Yet many consider Jurong as a preferred manufacturing destination due to several factors. These include work culture, standards (EHS and Quality), and better facilitation by the government and better collaborative working by the industry. 

Another very important aspect is proactive risk management and the perception around managing the EHS risks. In my view, this is one of the reasons why the Chemical Industry does not get as much policy support as it should probably get.  

We must have a sharp focus on process safety and environmental risk management as well as compliances and governance. It is becoming increasingly critical from the view of stakeholders. These include society, regulators, consumers, NGOs, governments, and policy makers as well as investors. Without that we will not attract talent, get necessary policy support, or attract investments which are key for the industry to realize its true potential. It must not be seen as a cost but a very important investment for building great businesses. 

In the end, it is not about individual companies as much as it is about creating winning ecosystems. The electronics ecosystem of Japan or the automobile ecosystem of Germany or several others are good examples. Lastly, particularly, in today’s world it is about outstanding collaboration and creating reliable, trustworthy, and lasting partnerships. 

Initiatives taken by India Glycols for enhancing process safety across all facilities/processes to make operation intrinsically safe?   

Conventionally, safety was thought about as taking some extra care, following some procedures, and providing personal protective equipment etc. That is a very limited way of looking at safety. Process Safety is a very advanced science. It is about adopting leading edge practices, leading edge science, technology, design and most importantly a strong culture throughout the organisation.  

Process safety for example is about examining the impact of all layers together and quantifying the risk. It is a very rigorous approach which helps improve in a multiple dimensional way. With emerging technologies like digital and AI, this will advance even faster. Good companies will progress to convert their ability to manage Process Safety and Environmental risks into a distinct competitive advantage. It is also crucial to attract good talent which is at the heart of creating successful chemical companies. 

Similarly, we can expect the world to be far less tolerant of companies that continue to not address these risks. The expectations of stakeholders and regulations will continue to become more stringent. Even a few major incidents can have a detrimental impact not only on specific companies but the industry as a whole. I therefore consider investment in safety and environmental risk management not a cost but a long-term strategic imperative. 

How are Indian companies driving innovation? 

Driving innovation foremost is about creating a strong culture of learning and innovation. That needs time, investment, a strong belief, motivation and commitment. The fruits of this often-longer term but much larger and much longer lasting. You can beat one technology which another company may have acquired but you can’t beat a strong culture of innovation. It is not about doing it all along but building a strong culture of collaboration within and outside the organisation, a culture where people are given space to think, space to try and to learn from mistakes. It is about creating a fertile ground for sprouting of ideas, evaluation of ideas, weeding out and shortlisting of ideas and then executing them and scaling them up with perseverance. 

It is also about focusing on identifying problems or needs and creating value for customers, consumers and society. In the times to come sustainability will remain at the heart of innovation and it will drive the most innovation in the industry. We, as a country, are making progress, but we need to keep pushing as there is a lot more that needs to be done and eventually not only about catching up but getting ahead in an ever increasing competition in the world. 

June 25, 2024

Emerging trends/challenges in the agrochemicals industry in 2024?

In 2024, the agrochemicals industry, especially in India, is on the move as the fourth-largest producer globally and has an unrealized potential to grow further. We've already seen some significant shift in the Indian market, and it's gearing up for more changes ahead that'll shape the trends and throw challenges our way. 

In terms of challenges, regulatory changes continue to drive the industry, with increased scrutiny on pesticide residues, environmental impact, and product safety necessitating adaptation and innovation. 

Even the global supply chain disruptions, increased by factors such as trade tensions, geopolitical uncertainties, continue to impact the availability and pricing of raw materials and finished products.  

Now, with the emergence of pesticide-resistant weeds, pests, and diseases, it poses a significant challenge for both farmers and agrochemical companies. To address this issue, there is a growing attention on integrated pest management (IPM) strategies, and the development of novel chemistries with different modes of action, including the development of bio-based pesticides and precision application technologies.

Moreover, through the integration of AI, IoT, and data analytics, is reshaping the agri sector with precision agriculture initiatives. Addressing these trends and challenges requires agility, innovation, and collaboration to ensure sustainable and productive agriculture while meeting the needs of farmers, consumers, and the environment. 

What strategies should India adopt to become a global manufacturing hub for agrochemicals? What role does Corteva India see for itself in making India a global manufacturing hub? 

According to the World Trade Organisation (WTO) data, India’s agrochemical exports, valued at $5.5 billion, have surpassed the USA, which stands at $5.4 billion. The growth in India’s agrochemical industry has resulted in a worthwhile trade surplus of Rs 28,908 crore in FY 2022-23.

India's potential as a global manufacturing hub looks promising due to growth factors supported by government policies, demand, and innovation, focusing on research and development and capacity building under initiatives like Make in India or Atmanirbhar Abhiyan.

The industry has developed advanced manufacturing facilities to meet both domestic and global demands, reducing the need for agrochemical imports in the long run. However, to sustain exponential growth, supportive policies and regulatory reforms are crucial. These include streamlining approval processes, offering investment incentives, and ensuring compliance with international quality and safety standards.

At Corteva, we believe India plays a vital role in a robust global supply chain, leveraging its strong growth, scientific knowledge base, and skilled workforce. We're ramping up our R&D investment to maintain leadership in plant breeding and crop protection, focusing on proprietary and unique products for future growth. Corteva operates three production facilities and eight R&D centers, with the Multi-Crop Research Centre (MCRC) in Telangana as our flagship plant breeding facility and technology hub for Asia-Pacific. We're expanding our R&D presence, developing global supply chains, digital capabilities, manufacturing, and skill partnerships to support India's growth aspirations, contributing to the country's socio-economic progress.

Strategies adopted by the company for developing and characterizing hybrid seeds for farmers in India? How does it help them to select the right product to maximize productivity and profitability?

At Corteva, we employ extensive R&D efforts to identify and develop high-yielding and resilient crop varieties suited to the diverse agro-climatic conditions across different regions of India. This involves leveraging advanced breeding techniques, such as marker-assisted selection and genomic analysis, to accelerate the development of desirable traits like disease resistance, drought tolerance, and enhanced yield potential. 

Secondly, we conduct rigorous field trials and performance evaluations to assess the agronomic performance and adaptability of hybrid seeds under real-world farming conditions which helps us validate the performance of new hybrids across various soil types, climates, and cropping systems, ensuring that they meet the needs and preferences of local farmers. Furthermore, we actively engage with farmers and agricultural extension services to gather feedback on the performance in different farming contexts

This feedback loop enables our teams to continuously refine its breeding programs and seed development processes, incorporating farmer preferences and addressing specific agronomic challenges.

We at Corteva currently work closely with more than 5 million farmers, 19,000 retailers and 2,500 distributors across 15 million acres of cultivable land, train 75,000 Farmers Spokesperson and conduct field trials at over 1,000 location – to get the right product on the right acre to maximize their productivity and profitability. 

How is the company's Pioneer brand helping the Indian farmers to grow corn, rice, millet, and mustard sustainably? What are the key product offerings?

For the last 50 years, Corteva Pioneer seeds have been benefiting millions of farmers to maximize their productivity and profitability and are supporting Indian farmers across various crops like corn, rice, millet, and mustard.

For corn cultivation, Pioneer offers a range of hybrid seeds characterized by traits such as drought tolerance, pest resistance, and high yield potential. For millet cultivation, we provide seeds specifically developed to enhance yield, nutritional quality, and resilience to biotic and abiotic stresses. 

Last year, Corteva with ICRISAT and ICAR collaborated on research and have achieved a significant milestone by resequencing pearl millet genomes leading to the development of new molecular markers, opening the door to creating millet cultivars with exceptional yield performance and improved nutritional quality. In the mustard segment, the seeds are characterized by traits such as high oil content, uniformity, and disease resistance. These hybrid mustard varieties enable farmers to maximize their oilseed production, enhance oil quality, and improve their profitability while reducing dependency on imports and promoting self-sufficiency in edible oil production.

In the case of rice, seeds give superior yield potential, disease resistance, and adaptability to different soil and water conditions. These hybrid rice varieties help farmers increase their productivity while reducing input costs and minimizing the environmental footprint of rice cultivation, such as water usage and pesticide application.

For easier adoption of such sustainable innovations like Direct Seeded Rice (DSR), Corteva is at the forefront by providing technical grooming of agriculture entrepreneurship and leadership training to build confidence, financial literacy, and negotiation tactics for agri entrepreneurs through shared value projects.

Company has recently launched Salibro Nematicide in India. What are its unique features and expected outcomes? 

Salibro focuses specifically on controlling harmful root-knot nematodes while preserving beneficial insects and soil health, minimizing its environmental impact. Its targeted and environmentally friendly nature sets it apart from broad-spectrum alternatives. Also, the product boasts a novel mode of action, making it effective against nematodes that may have developed resistance to older products

Moreover, Salibro plays a crucial role in protecting plant root systems, promoting the development of healthy roots that enhance water and nutrient uptake. This results in improved crop yields and quality, directly benefiting farmers.

For Indian farmers, Salibro promises reduced crop losses by effectively controlling nematodes, thereby safeguarding crop health and minimizing yield losses caused by these pests. Additionally, Salibro aligns well with sustainable farming practices, emphasizing targeted control and minimal environmental impact. 

Company's approach with respect to R&D for new technologies and products. How will it shape the future roadmap of the company keeping sustainability and net carbon zero in picture?

Corteva is strategically advancing its R&D efforts to drive innovation and sustainability within the agricultural sector while keeping sustainability and net carbon zero goals at the forefront. With an increasing R&D investment, we maintain leadership in core areas of plant breeding and crop protection, leveraging proprietary and differentiated products while investing for future growth.

With our 2 manufacturing production facilities, and 8 R&D centers in India, we are expanding R&D footprint to build world-class research bases, supply chains, digital capabilities, and manufacturing and supply chain capabilities. 

As part of its 3D Reform Agenda, Corteva supports crop protection registration regulatory reforms, advocating for a predictable, science-based regime to expedite the introduction of new age molecules to farmers. Corteva's leadership in CRISPR gene editing for agricultural products, particularly in row crops like corn, soybeans, sorghum, and canola, underscores its commitment to sustainable innovation with 100% of Corteva's current seeds pipeline meets sustainability criteria, with a commitment that all newly developed solutions will meet sustainability criteria tied to UN Sustainable Development Goals by 2025.

With sustainability at the core of our business, we recognize making it central to every aspect of its operations, from Discovery to Launch. Through climate-positive solutions like Direct Seeded Rice practices, Corteva is not only enhancing farmer profitability but also contributing to water conservation, soil health improvement, and reduced greenhouse gas emissions.  

How has the company adapted to changing market conditions and evolving consumer preferences?

As market dynamics shift and consumer preferences evolve, Corteva has consistently innovated its product portfolio to meet emerging needs. Corteva has invested in digital agriculture tools, precision farming technologies, and biological solutions that align with consumer demands. By incorporating these innovations into our product offerings, we ensure that farmers have access to cutting-edge solutions that enhance productivity while minimizing environmental impact.  

Looking ahead, Corteva's future product roadmap is likely to focus on continued emphasis on sustainability and environmental stewardship, with an increased focus on developing products that support regenerative agriculture practices, enhance soil health, and reduce greenhouse gas emissions. Additionally, we are looking at investing further in digital agriculture solutions, leveraging data analytics, AI, and IoT technologies to optimize farm management practices. Furthermore, we may expand our portfolio of biological solutions, biopesticides, and bio-based inputs. Advancements in gene editing technologies, such as CRISPR, will enable us to develop crops with improved traits and characteristics, further enhancing productivity and resilience in the face of changing climatic conditions.

How are you planning to leverage digital technologies to optimize your processes and better your overall operational capacities?     

Over the years, the Corteva Global Services Center (CGSC) has evolved into a vital support hub, playing a pivotal role in our organization's transformation journey. CGSC serves as an extension of our line organization, supporting critical processes with a significant business impact. Many employees within the GCC hold significant roles such as Country Controller and Global Process Owners, responsible not only for service delivery but also for defining processes and policies within their respective areas. Technology plays a pivotal role in maximizing efficiency and driving value for our finance and tax functions. 

CGSC is deeply involved in Corteva's digital adoption and transformation journey. We have already automated transactional and repetitive processes, as well as certain client interaction processes, using technologies like workflows and chatbots. Looking ahead, we aim to further digitize and automate standardized processes to deliver greater business value. Our success is measured not just in terms of cost and speed, but also in terms of the business impact we make, end-to-end ownership of our work, and the level of partnership we have with global functional and business teams.

Overview of the company's sustainability initiatives and how do you plan to reduce your environmental impact while still delivering value to customers and shareholders?

Corteva’s sustainability efforts are guided by four key goals: Sustainable Innovation, Biodiversity, Greenhouse Gas Emissions, and Inclusion, Diversity & Equity (ID&E). By 2025, every new product we develop will meet or surpass sustainability criteria tied to UN Sustainable Development Goals. We aim to ensure that each product not only meets baseline sustainability requirements but also delivers notable sustainability advantages across its lifecycle, compared to existing products. 

We recognize that sustainability is not just a moral imperative but also a business imperative. By proactively addressing environmental challenges, we mitigate risks, enhance operational efficiency, and unlock new growth opportunities. Ultimately, our sustainability initiatives are not only about reducing our environmental impact but also about creating shared value for all stakeholders, including customers, shareholders, and society at large.

New areas which are opening up for seed & crop protection companies and what's the role that you foresee for your company?  

Seed and crop protection companies are venturing into new areas to address evolving challenges. These include sustainable agriculture, where there's a growing emphasis on environmentally responsible practices and products. Additionally, digital agriculture is transforming industry, biologicals and biotechnology are also gaining traction, offering safer and more sustainable alternatives to traditional pesticides and fertilizers. Companies are focusing on developing crops and solutions that can withstand changing environmental conditions. 

With this in mind, Corteva is leveraging its extensive R&D capabilities, global presence, and strong partnerships. By delivering solutions that address these emerging areas, Corteva will continue to provide value to farmers, consumers, and the environment while fostering sustainable growth and innovation in the agricultural industry.

Major CSR initiatives planned by the company in 2024? 

Corteva’s multi stakeholder partnership with Water Resource Group is implemented in Uttar Pradesh to convert 40,000-acres of rice farmland towards DSR in 3 years. This will result in a 30% reduction in water utilization, GHG emissions and labor requirement making rice farming sustainable and higher ROI for rice farmers. 

Our flagship initiative – AcreNext makes rice farming sustainable without exerting pressure on climate & resources. We work with primarily smallholder farmers growing rice in Punjab, Haryana, MP, Bihar & Jharkhand with focus on reducing water, fuel suage, GHG emissions, manual drudgery while improving soil health, resulting in ~10% increase in income.

 Corteva Agriscience Scholarship Program is an initiative of Corteva Agriscience India Pvt. Ltd. that aims to provide financial assistance to meritorious students to pursue post-graduation or doctoral courses in the area of Agriculture. Under this scholarship program, female students pursuing studies in any year of post-graduation or PhD programs in streams such as Home Science, Biotechnology, Entomology, Breeding, etc. will be awarded with a scholarship amount of Rs. 50,000 to cover their academic expenses.160 meritorious female students awarded scholarship. Out of the 80% were from farming families and 78% had family income less than Rs. 1 lakh per annum.

June 24, 2024

Ion Exchange (India) Ltd. has completed 60 years of operations. How has the journey been so far? 

Ion Exchange completed 60 years of incorporation on March 6, 2024. We are pioneers of water treatment in India and over the years, have developed innovative solutions to address water-related challenges, contributing significantly to the industry's growth and development. 

Through our 60 years’ journey, we have also expanded our reach and product offerings to newer markets while serving every sector. We entered new markets with concepts like desalination, recycling, zero liquid discharge and affordable solutions for rural water treatment. Thus, we have created impressive global water references for total water and environment management solutions for industries, homes and communities.

Throughout our 60-year journey, Ion Exchange has continually invested in research and development to stay at the forefront of technological advancements in water treatment. This includes development of new products, processes and solutions to meet evolving customer needs and regulatory requirements. 

In 1976, Ion Exchange set up the first international plant in Malaysia. Since then, we have continued to successfully execute large number of projects globally meeting the exacting needs of our international customers. Last year, Ion Exchange acquired Portugal based company MAPRIL for penetrating the European market as part of our sustainable growth strategy.

Exports now account to 30% of our sales.  For nearly three decades, we have built a favourable position as a reliable exporter of quality Ion Exchange resins, water treatment plants, chemicals and services. 

Over the past decade, we have added many milestones to our legacy. Notably, our consolidated revenue crossed the milestone of Rs. 2,000 crore in FY 2022-23. We continued to invest in EESG practices as fundamental building blocks for our sustainable growth. We have committed ourselves to 14 of the 17 Sustainable development Goals and are on track to achieve new zero target by 2023.

We have also strengthened our CSR program aimed at addressing water scarcity, promoting water conservation and supporting community development initiatives.

As a six-decade old company operating in volatile, uncertain environments, we have faced challenges while we maintained our leadership position. Successfully navigating these challenges has been the key attribute to our long-term success.

How has the overall performance been for Ion Exchange (India) Ltd. in 2023 -24 and what is the expectation from 2024-25?

For 9 months of FY 2023-24, on a consolidated basis, our operating income increased 8% YoY. Profit after tax increased 8% on a YoY basis. We expect this trend to continue in subsequent years while treading with caution against global geo political, economic headwinds. However, considering good backlog of orders and increasing awareness on water security, we predict our growth in 2024-25 and the foreseeable future to be good. 

What are the key factors that have contributed to Ion Exchange India's success and growth in the industry?

As trailblazers in the water and environment management sector, we continuously seek innovative solutions, whether originating from our internal research or global strategic partnerships with experts. 

Amidst escalating competition, our strategy remains resolute: embracing innovation to enhance our performance. This ensures our ability to expertly address evolving customer needs. By consistently integrating new technologies, we not only maintain relevance but also lead as a premier global provider of water treatment solutions. We have honed expertise in delivering tailored water solutions for homes, communities, industries and institutions alike.

In addition, Ion Exchange has continued to diversify its offerings beyond traditional water treatment solutions. This includes the development of engineered products and process solutions for separation, purification, concentration and recovery using advance ion exchange resins, adsorbents and membrane technologies. 

What are the key revenue growth drivers for the company and how are you planning to grow your business in the coming years?

Some of our key growth drivers are:

* Expansion into New Markets: Expanding into new geographic markets and industries increases the company's customer base and revenue streams.

* Strategic, sustained investments in manufacturing - capacity building to meet growing market demands for our products, solutions and services.

* Focus on Sustainability: Offering sustainable and eco-friendly solutions aligns with increasing customer demand for environmentally responsible products and services, driving revenue growth

*  Digital Transformation: Our IonSite digital solutions leverage digital technologies and data analytics to monitor real time performance of water assets, enhance operational efficiencies and ensure continuity of operations without unplanned breakdowns. 

How do you optimize capacity utilization of your plants? What steps do you take to minimize downtime and ensure that the facilities are operating efficiently?

Ion Exchange optimizes capacity utilization of not only plants within our fence but also at our customer’s site through our digital 24X7 services to ensure that facilities operate efficiently with minimal downtime.  

*  Predictive Maintenance: Implementing predictive maintenance techniques allows us to detect potential equipment failures before they occur. This minimizes unplanned downtime and maximizes equipment uptime.

*   Scheduled Maintenance: Developing comprehensive maintenance schedules helps ensure regular maintenance tasks are performed at optimal intervals, reducing the risk of unexpected breakdowns.

*  AI-based Continuous Monitoring: IonSite Digital Twin is a cloud based solution that leverages Artificial Intelligence (AI) and wastewater modeling technology to predict and avoid water quality issues, identify cost savings and provide real-time performance advice. This allows for early detection of abnormalities and proactive intervention to prevent issues from escalating.

* Training and Skill Development: Providing ongoing training and skill development programs for plant operators and maintenance personnel ensures they have the necessary knowledge and skills to operate equipment efficiently and troubleshoot issues effectively.

* Process Optimization: Continuously monitoring and analyzing process performance data allows for identification of opportunities for process optimization and efficiency improvements, leading to increased throughput and capacity utilization. 

With increasing concerns about water scarcity and pollution, how does Ion Exchange (India) address these challenges and provide sustainable solutions?

Ion Exchange’s strongest asset is its unique capability to provide 360° sustainable solutions for water & waste water treatment across industries, institutions, homes and communities - both urban & rural, to customers globally for six decades.

Ion Exchange has contributed in shaping the water industry’s response by providing the most innovative, cost-effective and sustainable solutions for water and waste water management. And we shall continue to channel all our strengths and efforts into doing this. I see Ion Exchange playing a dominant role particularly in bringing cost-effective, user-friendly solutions for waste water treatment and reuse, introducing technologies that require less energy & less use of chemicals.

The impressive countrywide and global infrastructure Ion Exchange has built - seven manufacturing facilities across the country, an assembly centre in Hamriyah Free Trade zone, Sharjah, UAE and a chemical blending unit in Bahrain, warehouse & assembly centre in Indonesia , the new acquisition in Portugal and sales and branch offices both in India and overseas backed a strong network of dealers and stockists have enabled our customers and prospects to benefit by our innovative, quality offerings to meet their ever increasing demand for water and meeting their sustainability goals. 

Supported by an extensive 24X7 Digital Service infrastructure, we are well placed to meet challenges faced due to scarce water availability, stringent discharge norms, increasing costs and demands for this limited and scarce resource - viz water. 

How does Ion Exchange (India) Ltd. differentiate itself from its competitors in terms of product offerings, customer service, and overall value proposition?

Ion Exchange (India) Ltd. distinguishes itself from competitors through several key factors in its product offerings, customer service and overall value proposition:

* Innovative Solutions: Ion Exchange is known for its continuous innovation in developing cutting-edge water treatment solutions. We invest significantly in research and development to introduce new products and technologies that address evolving customer needs and regulatory requirements.

* Customization: Ion Exchange offers customized solutions tailored to the specific requirements of each customer. By understanding the unique challenges faced by different industries and applications, we deliver solutions that optimize performance and efficiency.

* Comprehensive Product Portfolio: Ion Exchange provides a comprehensive portfolio of water treatment products and services, including ion exchange resins, membranes, specialty chemicals and engineering solutions. This breadth of offerings allows customers to source all their water treatment needs from a single, trusted provider.

*  Quality and Reliability:. We adhere to stringent quality control measures throughout the manufacturing process to ensure consistent performance and customer satisfaction.

* Technical Expertise: We boast a team of highly skilled engineers, scientists and technical experts who provide comprehensive support to customers. From system design and installation to troubleshooting and maintenance, we offer unparalleled technical expertise and assistance.

* Digital 24X7 Service: We are committed to providing exceptional after-sales service and support. We offer maintenance contracts, spare parts availability and prompt response to customer inquiries and service requests, ensuring minimal downtime and maximum uptime for customers' systems.

Could you elaborate on some of the major projects or partnerships that Ion Exchange (India) has undertaken, highlighting the impact created?

Our acquisition of Portugal based company MAPRIL last year has strengthened penetration into the European market in line with our sustainable growth strategy. 

We have witnessed a steady order flow, both in the domestic and international market for engineering, chemicals & services. This includes a 40 MLD Seawater Desalination project for a leading EPC company in North Africa followed by repeat orders for even larger capacities following the timely and quality completion of contract within stringent time lines for the 40 MLD Sea Water Desalination Project. We also received EPC contracts for Desalination and Complex Waste treatment from one of India’s largest offshore oil exploration unit.

Other significant orders include a complete Zero Liquid Discharge plant and a turnkey contract for capacity expansion at Indian Oil Corporation, Panipat Refinery. 

We have also received several EPC contracts for Water Treatment Recycle and Complete Zero Liquid Discharge plants from leading companies in paint, food & beverages, steel, textiles, to name a few.

As a leader in the industry, how important is environmental sustainability for Ion Exchange (India) Ltd., and how do you ensure it is incorporated into all aspects of your operations?

The key aspects of Ion Exchange’s sustainability strategy are based on the purpose of our business i.e. to conserve the planet’s most precious resources through total water and environment management solutions. 

Our factories make all efforts to reduce the water footprint by efficient water usage in non-product applications such as cleaning activities, gardening, and for domestic purposes Certification under ISO 14001 ensures system adherence to environment protection guidelines and periodic reporting of compliance to senior management. Emissions generated are within the permissible limits given by CPCB. 

An example is the green manufacturing practice followed at our resins manufacturing plant at Ankleshwar.  This is the largest resins manufacturing unit in India.  Ankleshwar being an industrial area having a cluster of chemical units with inadequate treatment of chemical waste generated by them; the water table and natural water source is heavily polluted. Our facility has an effluent treatment system treating waste streams to acceptable levels for discharge. Our commitment to recover water from the effluent and reduce the load on the environment led us to initiate a first-of–its–kind project to extend the treatment of effluents by a series of state-of-the-art and sophisticated membrane systems.  

Ion Exchange has an extensive protocol/ mechanism to test our products for their impact on the customers and the environment. Measuring, monitoring and improving impact across the lifecycle of products and operations will continue to be another key factor of the strategy to achieve our goal to create a positive impact on nature and people’s lives and transform Ion Exchange into a water positive operation.

Besides this, an important part of our sustainability strategy is to ensure the well-being of our employees as well as the communities whom we serve.  

What are the future growth strategies and areas of focus for Ion Exchange (India) in the coming years?

Ion Exchange (India) will continue investment in research and development to drive innovation and develop new products and solutions that address emerging market needs and technological advancements. Expanding into new geographic markets and industries through market diversification and international expansion will continue to be important for us. Leveraging digital technologies and data analytics, will result in improving decision-making, enhance operational efficiency and deliver value-added services to customers. 

We will continue to increase focus on sustainability initiatives, including offering eco-friendly products and solutions, promoting water conservation and supporting environmental stewardship through corporate social responsibility programs. 

Finally, investing in talent development and skill enhancement programs are key for us to ensure the company has the necessary expertise and capabilities to drive innovation, deliver exceptional service, and execute growth strategies effectively.

June 21, 2024

2024 Industry trends/challenges in Advance Intermediates, Phenol and Acetone? 

2024 is a year where 90% of the democratic world goes into elections, which generally result in a vote focused and short-term bias. It is also fraught with geo-political volatility and for agrochemicals, an El Nino year adds additional uncertainties. Despite these uncertainties, we see several signs of recovery, and India continues to stand out in its business optimism. We, though, must be vigilant of possibilities of increased chemical dumping from our large neighbour to maintain the sector’s agility and resilience for powering India’s trillion-dollar dream. 

How has Deepak Nitrite performed during FY 2023-24 and what's your forecast for FY 2024-25? 

Deepak is working toward a well-articulated goal for the next four years. Its current business and new investments will result in compounded growth opportunities for the entire chemical manufacturing landscape of related and downstream products in the chemical and material science applications landscape. 

Capex invested in FY 2023-24 and projects where it was invested? Capex investment for FY 2024-25 and projects where you are planning to invest? 

Deepak's considerable investment plans are in line with its 'Right to Win' framework which includes upstream, downstream and sunrise segments. It has also invested into sustainability initiatives which will result in value accretion from FY25 onwards. In FY 2023-24, Deepak Chem Tech Limited (DCTL) has inked MoU worth Rs. 14,000 crores with the Government of Gujarat for manufacturing Polycarbonate, Methyl Methacrylate (MMA)/Poly Methyl Methacrylate (PMMA) Resins & Compounds.  

When are you planning to manufacture these products and Capex investment that you are planning to make and for what time duration? 

The capital investment plan announced assumes stagewise commissioning for multiple projects over the next 3-4 years. The company has already taken steps to become not just a manufacturer of the chemical intermediates, but an approved partner that supplies 'Fit for Effect' compounds and formulations to marque end customers. 

Deepak Nitrite has signed a term sheet with Petronet LNG to offtake 250 KTPA of Propylene and 11 KTPA of Hydrogen for 15 years. How will this help Deepak Nitrite in the long run?  

The term sheet with suppliers allows Deepak Nitrite to derisk its investments and reduce its dependency on multi-modal transport of hazardous raw materials. It is pertinent to note that the mission for Petronet LNG is well aligned with Deepak's in building a resilient chemical ecosystem for India's growth story. 

What strategy should India adopt to become a global manufacturing hub for Advance Intermediates, Phenol and Acetone products? What role does Deepak Nitrite see for itself in making India a global manufacturing hub? 

The world sees India as a ‘China +1’ destination for manufacturing. Deepak Nitrite acknowledges the strong possibilities and demand for chemicals in India itself, to make it a dynamic and sought after destination in itself. So, we should strive to Make India as ‘The One’, the right destination for manufacturing. To realise this, policies need to formulate and invest in key infrastructure development be it road connectivity, ports, SEZ and integrated chemical hubs.  

Proactive policy support and procedural clearance will help in cutting the red-tape and pave the way for development and give confidence to MNCs to set bases in India. ‘Skill-Developed India’ will be a backbone to sector development. Government and company supported R&D, training and learning centres will up-skill youth to be industry-ready and be ready for jobs of tomorrow.  

Construction work of Photo Halogenation and Fluorination has made significant progress. When do we see commissioning of this plant? 

We have announced commissioning. Presently, ramp up ongoing in a safe and phase-wise manner. 

Other expansion projects including MIBK, MIBC, and hydrogenation among others are taking shape and will be commissioned as per plan. What's the update on this front? 

Projects will be commissioned in various quarters of the current financial year. 

Initiatives taken by Deepak Group for enhancing process safety across all facilities/processes to make operation intrinsically safe?

Deepak cares for people and the planet. Our processes are guided by steadfast adherence and compliance to safety. Our operations at plants have received ISO certifications. Deepak Nitrite is one of only 40 companies certified to use ‘Responsible Care’. Safety and quality go hand in hand and at our units, we have adopted 5s and six sigma practices to ensure productivity backed with safety. This year, Deepak Nitrite Limited received “Score ‘B’ which is in the management band, signifying our transparency and innovativeness in creating safety culture in the company. 

What is the update on Deepak Research & Development Centre? When are you planning to make it operational and how will it help Deepak Nitrite in the long run? 

Our R&D facility is crucial to our success with its ability to develop advanced intermediates which requires complex chemistry and engineering. Its state-of-the-art pilot facility acts as a bridge between R&D trials and commercial production, allowing us to deliver quality products seamlessly. We are targeting this financial year or very early in the next financial year. 

What is the sustainability roadmap of Deepak Nitrite? What's the sustainability plan for Deepak Nitrite in FY 2024-25? 

Deepak Nitrite will publish its first Sustainable Report in 2024. Guided by the philosophy of Responsible Chemistry, we use new technology to capture new products from downstream, as well as frugal and judicious use of water and steam to reduce dependence on natural water sources. In 2023, we recycled over 420,000 KL water and planted 55,000 trees. We operate the lowest thermal footprint phenol plant in the world. 

Key CSR initiatives of Deepak Nitrite in FY 2023-24? Plans for FY 2024-25?

Deepak Medical Foundation has conducted over 115,500 diagnostic tests and 20,200 patients in rural communities along with health and medical camps and mobile-health units to serve 129,750 OPD cases. 

Project Vivek Vidya offers story books, learning material to over 8,000 across three states covering underprivileged children.  

Project Neem Satva offers silk development and economic empowerment to women in rural communities, helping the Self Help Groups to create livelihood opportunities by making and selling soap, sanitizer and hand wash. Education and skill development for over 150 Divyang children at the Gujarat State run Samaj Suraksha Sankul in Vadodara.  

Project Sangath community-based intervention aimed at increasing convergence of eligible households under government schemes and social safety net programmes, benefitting over 85,000 families.