August 15, 2024

2024 industry trends in the agrochemicals (Fertilizers, Fungicides, Insecticides, and Herbicides) industry?  

Industry trends of the last 6-8 months were not favourable and have gone through fairly difficult times rather difficult times from March 2023 onwards for the agrochemicals industry globally. The prices of almost all technical were drastically reduced & the reductions were varying from 40% to 60%.  

After Covid, since the prices were going up and up slowly & continuously, naturally there was a trend to buy more quantity during 2022-23 and to some extent agro climatic condition and commodity prices were also favourable. However, after March 23, due to normalisation of production world over including China, the prices starting dropping quickly. This has resulted in having high cost inventories of technical & finished products with the manufacturers as well as large traders & distributors world over had  high inventories as well as that also purchased at a high price. 

Since the price of technical & finished goods started dropping around March 23, there was a panic situation and everyone wanted to dispose of their high cost inventory & hence there was a sudden southward drop in prices. 

The situation became even worst because demand in North & South America (especially Brazil) seemed to have almost halved partly because of unfavourable agro climatic conditions and even lack of rain/water in many parts of the world.  Naturally the distributors & dealers then wanted to dispose of their inventory even at cost or even at loss. 

This is evident from many companies’ financial results of year 2023 and 2024. Even today after a gap of 15 months from March 23, the demand seems to be fairly slow in international business.  

As far as Indian Agro chemical market is concerned, it was stable but again the price drop made it bit difficult for most of the Indian manufacturers. What helped Industry was average last year rainfall and good commodity and crop prices hence most companies could manage well around +/- 5 to 10% of their March 23 turnovers. 

However, we are hopeful that from July 2024 things should look better and we expect reasonable turnaround & demand for exports also.  

How has SML Group (SML Limited, SUMIL, R3 Crop Care, and Nourish Ag) performed in terms of revenue and profit during FY 2023-24? What's your revenue and profit forecast for FY 2024-25? 

As already explained above, SML as a group has fared well in comparison to many of our similar industries, specially keeping in mind the market conditions.  However, SML groups export was sizably affected & the export turnover reduction was about 45% during March 24.  Naturally, the SML group’s overall profitability reduced from around Rs. 225 crore (2022-23) to Rs. 175 crore in year 2023-24. 

Capex invested by the company in FY 2022-23 and projects where investments were made? Capex investment for FY 2023-24 and projects where it would be invested?  

SML Group is continuously investing huge sums into R&D, with a completely new greenfield seven acre R&D site for various new compounds. This is one of the only kind of research site which is primarily developed for testing of new molecules which are being developed for the first time by SML group. 

SML also opened a new R&D site at New Bombay for synthesizing new chemical entities (NCE). Of course, this is a beginning but it may be difficult to calculate ROI’s for such large 3 R&D centres now being operated. 

As regards to Capex, the sixth new site at Panoli is under construction with an estimated investment of Rs. 50 crore in the first phase. 

What's SML Group strategy with respect to Biological products (Plant based or Microbial)? Biological products which you would be launching in the first phase?  

We will soon be launching innovative biological products from our own R&D facility. Hopefully, these products will be launched by Oct -Nov 2024. 

SML Group has more than 500 patents (applied and granted). How will these patents help SML Group in terms of revenue and profitability?   

SML has over 500 patents and some of these will be used by SML Group for marketing, some may be licensed or given on a royalty basis.   

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

All the SML group manufacturing facilities are world class and safety is accorded top priority at SML Group.  

Sustainability roadmap of SML Group and key sustainability initiatives of the company?  

SML has just recently received the FICCI Sustainable Agriculture award on 30th November, 2023 on the initiatives taken for agriculture based decarbonization and reduction in greenhouse gas emissions thereby increasing farm productivity. 

Major CSR initiatives being undertaken by SML Group in FY 2023-24?  

SML Group spends a sizable amount of CSR money on education and healthcare. The company printed 1.8 million notebooks of 200 pages and distributed them pan-India in more than 3,500 rural schools. Similarly, during two years of COVID-19, SML Group made two million masks and distributed them pan-India free to farming communities, dealers, and employees. 

August 10, 2024

What is the total area and unique features of Kakinada SEZ Ltd?

Auro Industrial City (AIC), situated near Kakinada, Andhra Pradesh, is an expansive port-based industrial park under development by Kakinada SEZ. Covering approximately 5,600 acres, it will be complemented by the Kakinada Gateway Port, which includes a port backup area spanning 1,650 acres. Offering land options within SEZ and DTA formats, the park is designed to accommodate industrial units with a Plug and Play model approach. 

What is the current status of development of Kakinada SEZ?

The industrial park has already received approvals for its operation including Environmental clearance from Ministry of Environment, Forest and Climate Change, Govt of India and Consent for Establishment (CFE) from Andhra Pradesh Pollution Control Board (APPCB). The basic infrastructure such as power, desalination water and construction roads are being developed. The development of specialized infrastructure such as Common Effluent Treatment plants, desalination plants is under process, 400/220/132 KVA substation and black topping of roads are in progress.

What are the main strategic priorities for the company in the next five years?

We aim to develop AIC, a port based industrial park with the advantage of being exports and imports, as a global destination by focusing on attracting domestic and international investments across various sectors by promoting the advantages of locating within the industrial park, such as favorable policies, logistical benefits, and access to markets. 

How do you plan to attract and retain investors in Kakinada SEZ Ltd?

Kakinada SEZ (KSEZ) comes under the PCPIR region. It is located on the central east coast and has a plug and play model. With all these advantages, KSEZ team is vigorously marketing the project in respective state, central and global level by attending conferences, associations and trade 

An upcoming port of Kakinada Gateway Port Limited (KGPL) will add additional advantages to the SEZ industries and will ease export and import business to enjoy long term logistical advantage. Hence, every industry will prefer KSEZ. 

What facilities are provided at Kakinada SEZ? 

The Industrial Park is in the process of development and will feature essential utilities, including a Common Effluent Treatment Plant with a capacity of 80 MLD and the capability to treat 25 MLD of HTDS, a Common marine discharge system, water sourced from a 150 MLD desalination plant, and power provided by a 400/220/132/33 KVA substation located within the industrial park. These utilities are complemented by other amenities and shared social infrastructure. The Park offers seamless connectivity to hinterland of India as well as global locations as deliberated below:

• Bharatmala Road (4 lane access-controlled highway - NH 516F) passes through the industrial park, creating seamless connectivity from NH16 at Annavaram to Auro Industrial City.

• A railway line from Annaravaram station to Kakinada Gateway Port is being developed to cater to the requirements of transporting cargo through Railway. 

• Kakinada Gateway Port is 3-4 km and Kakinada Seaport is about 25 km from the industrial park which shall ease the access of imports and exports. 

• Visakhapatnam airport is 135 km away, providing international air travel access. Rajahmundry airport is 78 km away, allowing additional domestic air travel.

What are the USPs for Kakinada SEZ? 

Strategic Location: Positioned near Kakinada, Andhra Pradesh, with proximity to major transportation routes i.e. National Highways, Railway network and the Kakinada Gateway Port, facilitating efficient logistics and access to both domestic and international markets.

Integrated Infrastructure: The industrial park is well planned with specialized infrastructure such as Common Effluent Treatment plant, Co-generation plant, Desalination plant and marine outfall apart from the basic infrastructure. 

SEZ and DTA Options: Providing flexibility with land options in both Special Economic Zone (SEZ) and Domestic Tariff Area (DTA) formats, catering to diverse business needs and preferences.

Plug and Play Model: The industrial plots earmarked are planned to enable businesses to quickly commence operations.

Government Support and Incentives: Incentives such as tax benefits and single desk clearance by the government supports us to attract and encourage investment within the industrial park.

What steps are being taken to ensure sustainable development and environmental responsibility within the SEZ?

AIC is planned by incorporating sustainable practices and environmental considerations into development plans to ensure long-term viability and minimize ecological impact.

How are you engaging with the local community to foster economic growth and job creation?

AIC has taken responsibility for regional growth and development and the CSR team is working towards development of the local community by identifying the needs and strengths of the local community. Special Action Plan is made for the development such as skill development center, training center, etc. Moreover, job opportunities will be available in Industries located in KSEZ and eligible personnel will get jobs in the related fields.

Can you please share some examples of successful projects and partnerships that Kakinada SEZ Ltd has undertaken?

KSEZ is becoming a hub for multiple industries with its advantages, around 10 Aqua processing units operating out of KSEZ and few more adding soon. With this KSEZ has become the largest aqua processing zone in the region/ state. The park is set to host Asia’s Largest Penicillin- G manufacturing unit. Apart, few other pharma-based companies have initiated construction and shall be operational in next 12-18 months. 

How do you envision Kakinada SEZ Ltd contributing to the overall economic growth of the region? 

Kakinada SEZ Ltd has the potential to significantly contribute to the overall economic growth of the region in several ways.  Firstly, it serves as a catalyst for industrial development by providing state-of-the-art infrastructure and a conducive business environment for various industries to thrive. This attracts both domestic and foreign investments, leading to job creation and income generation for the local population.

Overall, Kakinada SEZ Ltd plays a pivotal role in shaping the economic landscape of the region by fostering industrialization, facilitating trade, and promoting innovation, ultimately driving sustainable and inclusive growth for the benefit of all stakeholders.

How do you promote innovation and technological advancements within Kakinada SEZ Ltd?

Collaboration with Research Institutions: KSEZ fosters partnerships with leading research institutions and universities to leverage their expertise and resources. Collaborative research projects enable knowledge exchange, technology transfer, and the development of innovative solutions tailored to the needs of industries within the industrial park. Example: Indian Institute of Foreign Trade and Indian Institute of Packaging are establishing campuses next to the industrial park. 

Open Innovation Platforms: We facilitate open innovation platforms and collaborative networks within the SEZ, bringing together industry players, startups, academia, and government agencies to share knowledge, resources, and best practices. These platforms promote cross-pollination of ideas, facilitate technology scouting, and accelerate the pace of innovation.

How do you prioritize corporate social responsibility within Kakinada SEZ?

Prioritizing corporate social responsibility (CSR) within Kakinada SEZ Ltd is integral to our business ethos and strategic vision.

Stakeholder Engagement: We actively engage with stakeholders, including local communities, government authorities, NGOs, and industry partners, to understand their needs, concerns, and aspirations. This engagement informs our CSR initiatives, ensuring they address relevant social, environmental, and economic challenges faced by the community.

Community Development Programs: We design and implement community development programs that focus on areas such as education, healthcare, skill development, and infrastructure enhancement. These programs aim to improve the quality of life and socio-economic well-being of communities residing in and around the SEZ. 

Environmental Sustainability: We prioritize environmental sustainability by implementing measures to minimize our ecological footprint and promote conservation. This includes adopting green technologies, implementing waste management practices, and undertaking afforestation and biodiversity conservation initiatives.

CSR activities are being carried out in the form of providing breakfast to the government school students, skill development training, and rejuvenation of govt schools.

What initiatives are being undertaken to enhance the skill development and employability of local residents? 

Skill Development Centers: Establish skill development centers within the Industrial Park premises or in collaboration with local educational institutions to offer training programs in sectors relevant to the industries located within the industrial park, such as manufacturing, logistics, and technology.

Industry-Academia Partnerships: Forge partnerships with nearby universities, technical colleges, and vocational training institutes to design curriculum modules tailored to the skill requirements of companies operating within the SEZ. These partnerships can include internships, apprenticeships, and industry-sponsored projects to provide hands-on experience to students.

Vocational Training Programs: Offer vocational training programs in collaboration with government agencies, industry associations, and NGOs. These programs can focus on specific trades or skills needed in industries within the SEZ, such as welding, electrical work, machine operation, and quality control, etc.

Can you please outline the company's plans for expansion and diversification in the future? 

KSEZ may plan to expand its infrastructure to accommodate more industries and businesses. This could involve acquiring additional land, developing new industrial zones or parks, and upgrading existing facilities to attract a wider range of companies.

However, KSEZ's group company Auro Infra Pvt Ltd is well diversified into various businesses, including EPC, construction, realty, port development, mining, manufacturing of chemicals, etc. 

August 02, 2024

An overview of the core services offered by Shiva Engineering Services?

Shiva Engineering Services (SES) is proud to be recognized as one of India’s premier engineering and construction service providers. Our core focus lies in delivering end-to-end solutions across a diverse range of industries, including chemicals, specialty chemicals, agrochemicals, inks & adhesives, paints, pigments, food processing, FMCG, polymers, biofuels, and more.

From the conceptual stage till the plant commissioning, we offer a full spectrum of services, encompassing engineering, procurement, and construction. Our expertise begins with providing support for Front-End Engineering Design (FEED), cost estimation, basic and detailed engineering, procurement, and fabrication, construction and installation and extends till commissioning of the plant.

At SES, we differentiate ourselves by integrating cutting-edge solutions such as Laser Scanning and Drone Surveys into our projects. These technologies enable us to achieve unparalleled levels of accuracy while significantly reducing project timelines and costs. Our commitment to innovation ensures that we consistently meet and exceed the evolving needs of our clients.

How has the overall performance been for Shiva Engineering Services in 2023 -24 and what is the expectation from 2024-25? 

In FY 2023-24, Shiva Engineering Services (SES) experienced robust performance across various metrics, reflecting our commitment to excellence and client satisfaction. Despite the challenges posed by the global economic landscape, we maintained steady growth and delivered outstanding results in terms of project execution, client engagement, and financial performance.

Additionally, SES's international presence was strengthened as we were awarded multiple projects by leading conglomerates for their expansions outside of India. These achievements highlight our growing reputation as a trusted partner for global engineering and construction solutions.

Looking ahead to FY 2024-25, we are poised for even greater success. Building upon the momentum of the previous year, our strategic priorities include further expansion into emerging markets, diversification of our service offerings, and continued investment in technology and talent. We aim to capitalize on new opportunities, enhance operational efficiency, and strengthen our position as a leader in the engineering and construction sector.

Furthermore, SES remains committed to sustainability and environmental stewardship, integrating eco-friendly practices into our operations, and supporting our clients' sustainability goals. By embracing innovation, fostering strategic partnerships, and staying attuned to market dynamics, we are confident in our ability to achieve sustained growth and deliver exceptional value in the upcoming fiscal year and beyond.

What is the total number of orders received by Shiva Engineering Services in 2023 and what is the worth of these orders? What is the execution status of these orders?

In 2023, Shiva Engineering Services achieved remarkable success by securing a substantial number of orders, which reflects the trust and confidence placed in our capabilities by our valued clients. Our efforts resulted in securing orders with a planned capex exceeding 2000+ crores, encompassing both repeated and new customer bases, where we provide EPCM services to clients, within India and internationally. These achievements underscore SES's commitment to expanding our global footprint and penetrating new markets. By enhancing our capabilities and increasing our global reach, we were able to capitalize on emerging opportunities and solidify our position as a preferred partner for engineering and construction solutions. These orders signify a significant mutual trust and commitment between ourselves and our clients towards successful project execution, delivering excellence that exceeds expectations.

Regarding the execution status of these orders, we are pleased to report that a substantial portion of these projects has been successfully initiated and is progressing according to schedule. Our dedicated project management teams, skilled workforce, and robust infrastructure have played pivotal roles in ensuring the timely and efficient execution of these projects. While some projects are still in the early stages, we remain fully committed to delivering on our promises and meeting our clients' expectations. SES's track record of on-time delivery and adherence to project timelines continues to be a hallmark of our service excellence.

Moving forward, we are determined to build upon this success and further strengthen our position as a leader in the engineering and construction industry, both domestically and internationally.

How does Shiva Engineering Services differentiate itself from competitors in the industry?

At SES, we differentiate ourselves in the industry through a combination of comprehensive services, technical expertise, diverse field experience and a commitment to innovation and client satisfaction.

As a one-stop-solution engineering and construction services company, SES offers holistic approach to the project, providing seamless experience to the client. Our multidisciplinary in-house team of over 200+ engineers across Process, Mechanical, Civil Structural & Architectural, Electrical, Instrumentation and Control, Project Management collaborate closely throughout every stage of the project, ensuring optimal results and client success. SES's commitment to technology-driven decision-making sets us apart.

We leverage world-class software and tools for process simulation, engineering calculations, 3D modelling, and more, to achieve greater levels of accuracy in shorter timeframes. Integration of cutting-edge technologies such as Laser Scanning further enhances our capabilities, allowing us to achieve unparalleled levels of accuracy while significantly reducing project timelines and costs. Our commitment to innovation ensures that we consistently meet and exceed the evolving needs of our clients.

Are there any plans for expansion, either in terms of geographical reach or service offerings, in the near future?

Yes, indeed. We are currently strategizing expansion initiatives both in terms of geographical reach and service offerings. Soon, we plan to increase our manpower to enhance our capacity for serving a wider range of clients and projects. Additionally, we aim to expand our geographical footprint beyond India to cater to international markets.

While we already have a strong presence and working experience in over 20 states in India, we are also looking to leverage our expertise and experience to enter new markets abroad. With a successful track record in over 10 countries across the globe, we are confident in our ability to adapt and thrive in diverse international environments.

Expanding our reach both domestically and internationally aligns with our vision of becoming a leader in engineering and construction services. By broadening our horizons and diversifying our client base, we aim to strengthen our position as a trusted partner for delivering excellence in projects worldwide.

What sort of investment have you planned for the expansion?

As part of our expansion plans, we are committed to making necessary investments to support our growth trajectory. Our focus is on strategic investments aimed at expanding our operations, enhancing capabilities, and better serving our clients. These investments will enable us to grow exponentially in terms of both geographical reach and service offerings, positioning us for long-term success.

How does Shiva Engineering Services prioritize customer satisfaction and maintain strong client relationships?

We are 100% dedicated to our customers’ success. We believe in prioritizing customer satisfaction and maintaining strong client relationships at the core ethos of our business. We achieve this by placing constant communication and responsiveness, ensuring that we are always available to our client to answer their concerns promptly. Furthermore, we tailor our solutions to meet the unique requirements of each client, offering personalized attention and customized strategies to deliver results that align with their goals and objectives. We tailor our solutions to meet the unique requirements of each client, offering personalized attention and customized strategies to deliver results that align with their goals and objectives.

Can you discuss any specific initiatives or programs implemented by the company to emphasize sustainability and minimize environmental impact?

At SES, we are committed to sustainability and minimizing our environmental impact through concrete initiatives and programs. We have started several awareness programmes for our employees to reduce the use of plastics and paper in day-to-day operations.

To achieve our goal of Zero-Use plastic, we have implemented measures such as replacing single-use plastic with sustainable alternatives. Additionally, we are actively exploring solutions to further eliminate plastic from our operations and supply chain. In parallel to reduce the use of papers we are implementing digitalization strategies across our organization including transitioning to electronic documentation and communication systems. By proactively addressing environmental challenges and embracing eco-friendly practices, we are working towards a greener, more sustainable future.

Where do you see Shiva Engineering Services five years down the line?

In five years, we aim to envision SES as one of global engineering and construction services partner from India, renowned for its innovation, excellence, and commitment to sustainability. Our strategic roadmap includes expanding our geographical reach, diversifying our service offerings, and further enhancing our technological capabilities.

We look forward to solidifying our position as a preferred partner for clients across various industries, both domestically and internationally. Through strategic investments in talent acquisition, technology, and infrastructure, we seek to strengthen our competitive edge and deliver even greater success stories to our clients.

August 01, 2024

Turnkey solutions provided by BEIL Group with respect to environment protection which are innovative and cost-effective?   

BEIL Infrastructure Ltd., formerly known as Bharuch Enviro Infrastructure Limited, is a leading company in the Waste Management industry. Headquartered in Ankleshwar, a major chemical hub in Gujarat, BEIL has operations in over four states in India and a diverse range of ten waste management services. BEIL is committed to expanding its presence to cover almost every state in the country. 

BEIL’s core business areas encompass a wide range of activities. These include the collection, segregation, transportation, trading, processing, composting, recycling, treatment, and disposal of various types of waste. This also includes solid, liquid, and gaseous substances, as well as municipal solid waste, electronic waste (e-waste), batteries, solar plates, used oil, paint waste, construction and demolition debris, bio-medical waste, hazardous waste, sewage, wastewater, plastic waste, rubber waste, and more. 

Additionally, our services extend to the operation and maintenance of common effluent treatment plants, sewage treatment plants, and water and wastewater treatment plants. We also undertake the use, sale, marketing, and distribution of all products and by-products that are generated during the treatment or disposal of waste and waste products.  

These products may include compost, energy, and refuse-derived fuel generated from waste-to-energy processes such as bio-methanation, methane gas from landfills, biogas, bio CNG, electronic products suitable for re-use (with or without refurbishing), paper, metals, and other materials, including chemicals obtained from the treatment of wastes. 

Our Unit Facilities: 

• Landfill sites are managed by BEIL and Group companies in Ankleshwar, Dahej, Shivalik, and Kochi

• Incineration facilities are established at Ankleshwar and Dahej units for hazardous waste, and in Kochi for bio-medical waste

• Municipal Solid Waste recycling plants are operational in Ahmedabad and Coimbatore

• The group oversees numerous STPs and ETPs across India 

BEIL Group's achievements in FY 2023-24 and what are your plans for FY 2024-25? 

Achievements FY 2023-24 

During the Fiscal Year 2023-24, we have accomplished an extraordinary feat by setting a new record for the largest amount of landfill waste received. Moreover, BEIL has triumphantly acquired and dispatched the highest quantity of Co-Process waste to date. The remarkable efforts of our Shivalik Solid Waste Management team have played a pivotal role in achieving this unprecedented milestone. Additionally, our esteemed group company, Enviro Technology, has received a staggering number of tankers, reaching a grand total of 55,630. Lastly, Kerala Enviro Infrastructure Limited has reached an all-time peak in handling bio-medical waste, showcasing our commitment to excellence in waste management. 

Plans FY 24-25 

At BEIL Group, our commitment to sustainability drives us to focus on developing green products. To further this goal, we have devised a plan to utilize solar panels on our completed landfill, generating an impressive 2.5 MW of power. This initiative not only helps us reduce our carbon footprint but also contributes to a cleaner and greener future.

In addition to our efforts in renewable energy, our dedicated project team is tirelessly working on converting municipal solid waste to bio-CNG. This ground-breaking project is set to take place at our Coimbatore facility, where we process an impressive 500 MTPD of municipal solid waste. By transforming waste into a valuable resource, we are actively contributing to a more sustainable and eco-friendly society. 

Furthermore, we are excited to announce our upcoming project of converting AgriWaste to bio-CNG, which is in its nascent stage and will take place in FY 24-25. This innovative endeavour will not only help us reduce agricultural waste but also provide a renewable source of energy. By harnessing the power of nature, we are taking significant steps towards a greener and more sustainable future. 

BEIL has acquired exceptional quality in building environmental management projects confirming to international standards and good engineering practices. How are these different from your competitors?  

At BEIL & its Group, our vision is to become a world-class hazardous waste management company. We are committed to creating a Clean, Green, and Healthy Environment by offering reliable and cost-effective Waste Management solutions. Our goal is to treat toxic/non-toxic industrial, municipal, bio-medical, plastic, and e-waste, converting them into reusable materials while minimizing waste for disposal in a scientifically safe engineered manner. 

Our mission is to protect and preserve our natural resources, ensuring a sustainable future. We achieve this by implementing innovative and cost-effective Waste Management solutions, utilizing advanced technologies. By doing so, we contribute to the creation of a Green Environment. 

What sets us apart from our competitors are the following key factors: 

Customer's Delight: We prioritize customer satisfaction and strive to exceed their expectations. 

Environment Friendly: Our practices are designed to minimize environmental impact and promote sustainability. 

Integrity: We uphold the highest ethical standards in all our operations, ensuring transparency and trust. 

Leadership: We are industry leaders, constantly pushing boundaries and setting new standards. 

Technical Excellence: Our team consists of experts who possess exceptional technical skills and knowledge.  

What hazardous waste management solutions are provided by the Group? 

BEIL’s major services for hazardous waste are: 

Landfill 

BEIL and Group companies are proud to operate multiple landfill sites across Ankleshwar, Dahej, Shivalik, and Kochi. These sites are meticulously designed to ensure the safe disposal of hazardous waste, minimizing any potential risk of environmental release.  

Our commitment to environmental stewardship is unwavering, and we take great care in selecting locations that pose no threat to surrounding areas. In line with our dedication to responsible waste management, we are excited to announce the upcoming establishment of a new landfill site at Jhagadia. This new addition will further strengthen our ability to protect the environment and ensure the well-being of the communities we serve. 

Multi Effect Evaporator 

BEIL has successfully implemented and operated MEE plants at both Ankleshwar and Dahej Unit. These state-of-the-art industrial systems utilize steam heat to efficiently evaporate water from liquid solutions. Through a series of vessels, each operating at a progressively lower pressure, the steam generated in each stage effectively heats the subsequent stage. This innovative process not only ensures significant energy savings but also enhances overall efficiency. 

BEIL also offers Incinerator, Common Operated Effluent Treatment Plant (CETP) and Municipal Solid Waste (MSW) services. 

India’s market size of municipal solid waste management solutions? BEIL’s solution for municipal solid waste management? 

The municipal solid waste management market is experiencing significant growth globally, with India being one of the top 10 countries in waste generation. According to The Energy and Resources Institute (TERI), India produces over 62 million tons of waste annually. With a collection efficiency of 95.4%, the country collects 152749.5 TPD of the total 160038.9 TPD generated. Take advantage of this growing market and invest in sustainable waste management solutions today. 

Municipal Solid Waste (MSW) 

BEIL Group operates two state-of-the-art MSW processing facilities, one in Ahmedabad with a capacity of 250 MTPD and another in Coimbatore with a capacity of 500 MTPD. Our facilities are designed to efficiently and scientifically dispose of municipal solid waste, ensuring that it undergoes a transformation in its physical, chemical, and biological properties. This transformation not only makes it easier to dispose of the waste but also allows us to recover valuable resources from it. Through our advanced processes, we are able to produce high-quality compost and RDF (Reduced Derived Fuel), contributing to a more sustainable and environmentally friendly waste management solution. 

Global and India market size of e-waste recycling solutions? BEIL’s e-waste recycling solutions? 

The e-waste management market is a rapidly growing industry, with the global market expected to reach US$ 155.4 billion by 2030. In India, the market is also flourishing, with a projected value of US$ 5.1 billion by 2032. 

India's e-waste management is in dire need of improvement, with a significant increase in e-waste generation in recent years. The majority of e-waste is being mishandled by small, undocumented shops, leading to environmental hazards. However, with the current installed capacity only catering to a quarter of the total e-waste generated, there is a pressing need for more efficient recycling solutions. Frost & Sullivan's projection of 11.5 million tonnes of e-waste by 2025 highlights the urgency for better waste management practices. India's 400 registered e-waste recyclers have the potential to make a significant impact, with an increased capacity of 1.07 million tons per annum as of March 2021. BEIL’s state-of-the-art e-waste plant across multiple locations is revolutionizing waste management. 

Global and India market size of common effluent treatment plant solutions? Brief us about common effluent treatment plant solutions provided by the Group?  

The worldwide market for ecological wastewater treatment reached a substantial US$ 16.7 billion in 2022. The Indian Water and Wastewater Treatment Market, on the other hand, was valued at US$ 1.51 billion in 2022 and is expected to experience a significant growth rate of approximately 11.22% during the forecast period of 2023-28. 

Common Operated Effluent Treatment Plant (CETP) 

BEIL operates a state-of-the-art Common Effluent Treatment Plant (CETP) in Ankleshwar with a capacity of 2.2 MLD. This facility efficiently collects, treats, and disposes of wastewater from various industrial sites, including small-scale tanneries. Additionally, in Baddi, Himachal Pradesh, we have established a massive CETP with a capacity of 25 MLD, catering to the needs of industrial estates and MSMEs. With our expertise and commitment to environmental sustainability, we ensure that industrial wastewater and domestic sewage are effectively managed, contributing to a cleaner and healthier ecosystem. 

Global and India market size of plastic waste recycling solutions? Talk briefly about plastic waste recycling solutions provided by the Group?  

In just a decade, the global plastic recycling market is set to witness remarkable growth. With a compound annual growth rate (CAGR) of 7.39%, it is projected to reach a staggering US$83,299.5 million by 2032, starting from its current value of US$ 40,838.5 million in 2022. Similarly, the global recycled plastic market is expected to experience significant expansion, with a CAGR of 4.7% and a projected value of US$ 67.1 billion by 2030, up from US$ 46.5 billion in 2022. 

India, in particular, is making great strides in the recycled plastics market. Valued at US$ 3,784 million in 2022, it is expected to reach US$ 5,277 million by 2028, with a CAGR of 5.6% from 2023 to 2028, according to IMARC Group. This growth showcases the country's commitment to sustainable practices and highlights the potential for further development in the coming years.

BEIL is making steady progress in the processing of plastic waste at its Ankleshwar Unit. 

What sort of waste to energy solutions provided by the Group?  

BEIL offers following waste to energy solutions: 

Incinerator: An incinerator plant, also referred to as a waste-to-energy (WTE) plant, serves as a furnace that incinerates hazardous materials at elevated temperatures to eliminate contaminants. Through the combustion process, the heat produced generates steam in boilers, which in turn powers turbo generators to generate electricity.

Incinerators are primarily utilized for the treatment and eradication of hazardous waste, while also having the ability to recover certain energy or materials. When executed correctly, incineration can significantly reduce the volume of hazardous waste and eliminate its toxic organic components. It is capable of treating various forms of hazardous materials, including liquids, gases, sludge, and soil. However, metals such as lead and chromium cannot be destroyed through incineration. 

The BEIL Group operates hazardous waste incineration facilities at Ankleshwar and Dahej units, as well as a facility in Kochi specifically for biomedical waste. These facilities are dedicated to ensuring the safe and efficient disposal of hazardous waste, contributing to environmental sustainability and public health. 

Global and India market size of waste water management solutions? Talk briefly about waste water management solutions provided by the Group?  

The global water and wastewater treatment market witnessed remarkable growth in 2022, with a valuation of US$ 301.7 billion. However, the future prospects are even more promising as it is projected to reach a staggering US$ 536.4 billion by 2030. This exponential growth is a testament to the increasing importance of water and wastewater management worldwide. 

India's wastewater treatment market was valued at US$5.141 billion in 2022 and is expected to grow at a CAGR of 11.76% to reach a market size of US$11.199 billion by 2029. This highlights the country's commitment to improving its water infrastructure and ensuring the well-being of its citizens. 

One crucial component of water and wastewater management is the sewage treatment plant. Also known as a wastewater treatment plant, it plays a vital role in collecting and treating wastewater from homes and businesses. By purifying the wastewater and making it safe to return to the water cycle, these plants contribute to public health and environmental sustainability. 

Sewage treatment plants are an indispensable part of sanitation and water infrastructure. It is imperative that governments, businesses, and individuals recognize the significance of sewage treatment plants and actively support their growth. By doing so, we can collectively contribute to the well-being of our communities, protect the environment, and pave the way for a sustainable future. 

BEIL and Group build and operate many STPs for the Government and World Bank. 

Major CSR initiatives being undertaken by BEIL Group? 

 BEIL is dedicated to its CSR Projects, with a focus on three major initiatives: 

Women Empowerment Centre: 

The center is committed to training underprivileged women in tailoring skills, empowering them to earn a livelihood. By securing contracts for uniform stitching from schools and industries, the center ensures sustainable income for these women. Additionally, the center has contributed significantly by producing masks for distribution to government and private sectors. 

Compost Site: 

BEIL has taken the initiative to adopt two villages, Jitali and Dahej, in Bharuch District. Through door-to-door collection of household waste, the company converts the waste into compost and establishes nurseries for community development. 

Scholarship for Underprivileged Children: 

BEIL allocates a substantial amount of funds towards providing scholarships for economically disadvantaged students, particularly in the field of engineering. By supporting their education and facilitating job placements, BEIL is actively contributing to the upliftment of these students.

July 27, 2024

Emerging trends that you foresee for the global and Indian chemical industry in 2024? 

In 2024, the global and Indian chemical industries will see a boom in specialty chemicals, renewable energy components, EV batteries, and semiconductor materials. Trends like resilient supply chains, sustainability, and "Make in India" initiatives are driving domestic production and innovation. The concept of green chemistry is also gaining attention, which could lead to initiatives on reduction of carbon footprint. 

How do you look back at the 42 years long journey of the Pon Pure Chemicals and the key milestones that you are really proud of?

Reflecting on Pon Pure Chemicals' 42-year journey reveals a remarkable story of growth and innovation. Starting the journey as a small start-up, it has become a growing company in the chemical industry with a turnover exceeding Rs. 4,500 crore. Our key milestones include the strategic expansion into imports in 2000 and exports in 2005, followed by the launch of in-house manufacturing in 2017.

We diversified further with the establishment of an R&D unit and ventured into the B2C sector with the Vooki brand. Today, our network includes 28 branches and regulatory compliance warehouses in India, five international branches, and exporting to 65 countries, serving over 13,000 customers. Our progress speaks to our commitment to excellence, customer satisfaction, and sustainable innovation.

Current services provided by the company's established SBUs in Basic Chemicals and Specialty Chemicals categories, based on bulk and retail requirements? 

We have set new standards in delivery, quality, and customer service by introducing customized packaging, providing Certificates of Analysis (COA) with our supplies, and establishing in-house labs to ensure product excellence. This innovation has resonated well with our clientele, allowing us to proudly serve across India and overseas.  

Basic Chemicals: We provide round-the-clock stock availability, ensuring timely fulfillment of bulk and retail needs. Repacking and Blending capabilities with their own quality lab verifies chemical purity. 

Specialty Chemicals: It features an application lab focused on developing new molecules and enhancing existing applications, ensuring innovative and effective solutions for diverse customer requirements.

We adhere to safety procedures at all times and provide awareness programs to our customers, vendors, drivers, and all stakeholders.

Can you share a few unique insights into your sales and distribution network, both domestically and internationally? How does it ensure robust logistics solutions in a complex business environment?

Market Analysis: Predicting demand and filling stocks locally, we proactively ensure product availability, minimizing lead times. Our approach emphasizes meeting the maximum requirements, offering a basket of chemical products to our customers. We also have strategic alliance with global petrochemical conglomerates (Shell, Exxonmobil, Lyondell, BASF etc)

Strategic Location: Our 28 branches and regulatory compliance warehouses and 4 manufacturing units are strategically located near major industrial hubs, with 34 dedicated shore tanks in multi-ports in India ensuring seamless distribution and reduced transit times.

International Network: We started a chemical drumming and repacking unit at Kandla SEZ in 2005, inspired by the practices of Singapore and Dubai. It serves as a vital hub for the export and import of chemicals and chemical products, which made us a global player in the chemical trade and distribution.

This strategic network enables us to navigate complex logistics challenges efficiently, providing reliable delivery and superior service to clients worldwide.

How does the company plan to make the difference in terms of sustainability?

Pon Pure plans to make a significant difference in sustainability by embracing renewable energy and reducing waste. In 2015, we ventured into renewable energy by establishing a windmill division, followed by a solar generation plant. We utilize the renewable energy produced in our other ventures. 

We also minimize transportation costs and environmental impact by reusing and re-purposing drums for chemical usage, contributing to a circular economy. These strategic initiatives highlight our dedication to integrating sustainability into every aspect of our operations, ensuring that our growth remains environmentally responsible.

What measures do you take to stay competitive in the market, considering factors such as pricing, innovation, and customer service?

Innovation: Our robust team of 25 experienced R&D professionals working to give the cutting-edge sustainable solutions that differentiate us in the volatile chemical market. Also, we continuously evaluate processes to meet customer demand and are exploring IT capabilities, automating warehouse operations for efficiency.

Customer Service: Our Customer-Centric focused approach enables us to deliver tailored and comprehensive solutions, fostering strong and long-term relationships.

Pricing: Our efficient manufacturing and supply chain optimization helps us to deliver quality products at competitive prices.

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

Key revenue growth drivers for Pon Pure Chemicals include customer addition and new product addition particularly in the manufacturing sector. Our low rejection rate compared to industry standards and ability to deliver differentiated products have been instrumental in driving growth.

Moving forward, we have new products in the R&D pipeline, focusing on innovative applications and developing products for various applications and value-added markets. We're also planning to open strategic warehouses in the western and eastern regions in India to enhance our distribution network. These initiatives will help us expand our customer base and solidify our market presence.

How do you balance short-term profitability goals with longer-term investments in R&D, new product development, and sustainability initiatives?

The new product development for various applications, and sustainability by prioritizing strategic resource use and innovation. The company views investment in R&D as vital for future growth, not just a cost, ensuring a steady supply of new and sustainable products.

By engaging with stakeholders, Pon Pure Chemicals aligns its business goals with societal expectations, reinforcing its commitment to adding value beyond profits. This approach keeps the company competitive and supports growth in a fast-changing market.

Pon Pure Chemicals has been awarded a Silver Medal by EcoVadis for its dedication to sustainability, ethical practices, and environmental management, highlighting its commitment to integrating sustainable practices into its operations and contributing to the global supply chain.

Role of Digital and AI (Artificial Intelligence), Deep Learning (DL), Machine Learning (ML), Internet of Things (IoT), Robotic Process Automation (RPA), Blockchain, and Drone in overall scheme of things. How are you planning to leverage it moving forward?     

Digital technologies and AI play a crucial role in our overall strategy. We're leveraging these technologies to optimize operations and enhance customer experience:

• AI: We are using AI for price prediction, demand prediction to enhance our process

• ML: We are utilizing ML to increase the efficiency of sales team 

• IoT: We make use of IoT to improve safety and efficiency in warehouses

• RPA: We use RPA to automate routine tasks and to other backend processes 

Steps that you are taking to ensure foolproof safety and security of chemical products, both for customers and for the wider community?

Educational and Knowledge Sessions: We conduct various educational and knowledge sessions for our vendors, customers, transporters, and drivers to emphasize the importance of adhering to safety protocols. These programs are provided free of charge, with a focus on our MSME customers to ensure they prioritize safety.

Trust Building: We have a thorough process for selecting customers and end-users, ensuring that those we work with adhere to the necessary safety standards. This ensures that chemicals reach the right customers. 

Regulatory Compliant Warehouses: Our warehouses fully comply with regulatory standards to securely store chemicals, maintaining a safe environment. 

Overview of the company's sustainability initiatives and how do you plan to reduce your environmental impact?

Pon Pure Chemicals has long prioritized sustainability by introducing and promoting differentiated, eco-friendly products to the Indian market since 2000. These products are now commercially viable and help us address customers' daily needs while reducing environmental impact. We've reached 13,000+ customers by continuously implementing sustainable processes. 

We harness the renewable energy generated to power our manufacturing units. We promote greener tomorrow campaigns on various occasions by distributing free tree and plant seeds to all stakeholders.

Also, we reduce transportation costs and minimize environmental impact, reuse chemical drums, and promote a circular economy. These strategic initiatives demonstrate our commitment to sustainability, ensuring that our growth aligns with environmentally responsible practices at every level

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

New opportunities are emerging for chemical companies. With the global shift towards renewable energy and New-Gen Industries there's a rising demand for value-added chemicals, services, and intermediates. Pon Pure is poised to supply these industries with innovative solutions tailored to their specific needs.

CSR initiatives to be undertaken by the company in 2024? 

The CSR initiatives underscore our commitment to making meaningful contributions to society, promoting sustainable development, and supporting communities across various sectors, going beyond just funding.

Education Enhancement: We're expanding our involvement with the School Infrastructure Development under the Namma School - Namma Ooru Palli Foundation. This involves offering scholarships and digital learning resources to foster inclusive educational opportunities. Additionally, we provide career guidance to high school students to help them choose the right path. Beyond financial support, our initiatives include interviewing teachers and aiding in the development of the English primary division, which now accommodates 300 kids annually.

Rural Development: In collaboration with NGOs, we will focus on sustainable agriculture, water conservation, healthcare, and skill development projects, empowering rural communities toward self-reliance. We also study government funding and provide recommendations to MSMEs.

Environmental Sustainability: Our environmental sustainability efforts will include tree plantations and plastic waste collection.

July 20, 2024

What is the global and Indian EPC market size with respect to chemical and petrochemical? Where does Nuberg stand?  

The global chemical and petrochemical EPC market is projected to be valued at US$ 456.91 billion in 2024, with an anticipated growth to US$ 576.52 billion by 2029, representing a CAGR of 4.76%. Within the Indian context, this market segment is estimated at US$ 178 billion, expected to reach US$ 300 billion by 2025. Nuberg maintains a strong presence in the Indian market, focusing on the chemical, steel, hydrocarbon, green hydrogen and fertilizer sectors. The company plays a significant role and actively participates in these industry verticals. 

Nuberg's focus in the last fiscal and what's your focus in the coming fiscal? 

We focus on chemical process plants and have been working on different types of chemical process plant technologies like Chlor-Alkali, Sulphuric Acid and Hydrogen Peroxide. Likewise, we are currently undertaking several projects in the hydrocarbon sector. For instance, we are executing projects such as the Sulphur Recovery Unit (SRU) and the Propylene Purification Unit (PPU) for Indian Oil Corporation Limited (IOCL), along with the NPK Fertilizer project for FACT. Again, there are projects in upcoming fields that we have segmented, such as green energy, which includes projects like Bio-Ethanol and making green hydrogen.  

We have successfully delivered India's First Hydrogen Fuelling Station in Vadodara for IOCL, a project that has been fully commissioned. In line with emerging trends, the company is directing its focus towards green energy and hydrogen technologies.  

Leveraging our extensive experience of over 28 years in hydrogen management, including the successful delivery of Hydrogen Plants, Nuberg is now embarking on various projects centred around green hydrogen. Our ongoing initiatives include the exploration and development of cutting-edge technologies, such as electrolyzers for hydrogen production. 

Nuberg has its own manufacturing unit called Indian Peroxide Limited (IPL). Performance of IPL and any expansion that you are planning? 

Indian Peroxide Limited (IPL) diversified from Nuberg, which started its first plant for Hydrogen Peroxide. It was commissioned in mid-2018 and after that, the company expanded and doubled its capacity. The initial plant capacity was around 125 TPD and post-expansion, the present capacity is around 300 TPD.  

IPL is an emerging company of Nuberg Group with huge growth potential. We will be investing in upcoming projects that are in the pipeline and will soon be declaring the next project for IPL. 

In terms of revenue, how has the company performed in FY 2023–24? 

In the fiscal year 2023–24, the Nuberg Group, encompassing both the EPC business and equipment manufacturing, is projected to achieve a turnover of approximately Rs. 1,000 crore. This figure excludes the revenue generated by Indian Peroxide, as it operates as a separate legal entity. Notably, we have recently completed expansion projects, and the initial plant in operation is anticipated to yield a turnover of roughly Rs. 120 crore in the same fiscal year. Looking ahead to 2024-25, our objective is to double the turnover. 

Most of the players in chemical and petrochemical are talking about expansion, either brownfield or Greenfield. How are you looking at the current fiscal situation? 

There are a lot of expansions, with many new projects coming up. We are quite well placed and would have an order booking worth Rs. 2,000 crore as of today. We have been growing at a very good pace and we are confident of continuing at the same pace.  

Nuberg is expecting good revenue growth, so are you looking at increasing your manpower?  

As a company on a growth trajectory, Nuberg recognizes the pivotal role of manpower in our line of business. Over the past several years, we have consistently expanded our workforce. Presently, we employ over 460 engineers, contributing to a total of 400,000 engineering man-hours. While it is challenging to predict the exact number of hires for the upcoming year, we anticipate recruiting additional personnel across various fields and disciplines to meet our evolving needs. 

How has been FY 2023-24 for Nuberg? 

This year has been exceptionally fruitful for the company, with revenues reaching approximately Rs. 1,000 crore. We successfully commissioned several noteworthy projects and embarked on initiatives involving cutting-edge technologies. Notably, we have recently finalized the commissioning of Hydrogen Peroxide plants in Uzbekistan and Egypt, each with a daily capacity of 85 and 70 tons, respectively.  

Regarding new projects awarded domestically, Nuberg is actively engaged in several significant endeavours. We are currently involved in the construction of a sulphur recovery unit for IOCL Vadodara, as well as the execution of an NPK fertilizer plant in Kochi for FACT. Additionally, we have been entrusted with the construction of a PPU unit by IOCL Panipat. In the chemical sector, we have secured the contract for India's largest Chlor-Alkali Project, with a capacity of 2200 TPD, awarded by the Adani Group. The commissioning of this plant is scheduled to be completed within fifteen months. 

Moreover, we have executed a Bio-Ethanol plant for IOCL Panipat. It has been a prestigious project in Make in India with Made by India technology. We have also commissioned India's first Hydrogen Fuelling Station. It is a trial project by the government and is doing quite well. 

In terms of international projects, we are setting up a Sulphuric Acid plant in the Czech Republic, Egypt, Saudi Arabia and Turkey. We are executing a Calcium Chloride project in Oman and a Hydrogen Peroxide plant in Indonesia. Apart from these, there are various projects in Turkey, Egypt and other countries. 

What portion of your revenue comes from exports? 

If you look at current financial numbers, the revenue from exports would be around 55 to 60 percent. 

Are you looking to increase your international exposure and what kind of projects are you looking for globally? 

Our operations encompass over 30–32 countries, providing significant international exposure. In our pursuit of new projects, we adopt a balanced approach, actively participating in both international and domestic markets. This strategy is aligned with our core objective of "Making Ideas Happen" and remains integral to our future endeavours. 

 Are you seeing any particular trend with respect to sustainable technologies? Do you see any licensing agreements that need to be changed or do you see any technology coming up to change the overall scenario? 

When we say EPC into chemical plants, there are various technologies in the market for different chemical plants. Whatever new chemical technologies we are working on, there is always a continuous process of improvement. We are very closely integrated into working on new technologies. We have our own technology for Hydrogen Peroxide which has three patents as of today. 

The most upcoming thing is green hydrogen, whether it is to do with the electrolyzer for water electrolysis or into purification or green ammonia. For sustainability, it is a very important step that the world has taken and there is a tremendous amount of development. This emerging trend is garnering significant attention from numerous companies, and we are likewise receptive to exploring projects in compressed biogas (CBG) moving forward. 

What are your plans for the current financial year?

In the forthcoming financial year, our strategic focus is on pioneering advancements in green energy technologies. This initiative aligns with the industry's growing emphasis on sustainability and renewable energy solutions. Additionally, we are gearing up for our next phase of expansion in Indian Peroxide Ltd., aiming to commence a new project that will further solidify our position in the market. Given our robust order book and the positive outlook for the EPC industry, we anticipate significant growth and are poised to capitalize on emerging opportunities.

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.