July 17, 2023

Would you elaborate about the company and services offered from the facility located near Nhava Sheva Port with respect to cleaning facility, tank testing, and tank repair?

Zodiac Tank Container Terminals was commissioned in March 2021, is a Samsara Group company, one of the leading shipping agency and logistics organizations operating since 1996 in India. Zodiac Tank Container Terminals state-of-the-art facility was developed as a 'one-stop-shop' for all ISO tank container cleaning, maintenance & testing, and road tanker cleaning matching with world-class quality standards.

The facility has dedicated exclusive cleaning bays for ISO tank containers as well as for cleaning of road tankers and food grade ISO tanks. The facility is carefully planned and run by a competent workforce using a fully automatic ISO tank container cleaning system with advanced German technology from Weidner. The cleaning facility is strategically located on Mumbai to Pune Highway, about 55 km from Nhava Sheva port with an excellent connectivity through a toll-free road, old Mumbai-Pune highway and also Mumbai-Pune Expressway.

Key milestones achieved by Zodiac Tank Container Terminals in the last two years? What are your expansion plans for FY 2023-24?

Zodiac Tank Container Terminals is the only ISO tank container cleaning & maintenance facility in India with ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certification. It is the only professional facility for cleaning of road tankers carrying edible oil/products and chemicals, which is fully compliant with environment protection regulations. It is the first such facility in India with a roof top solar power plant and our entire facility is running on solar power. The facility is also compliant with Kosher and Halal certification and Welders certified by Bureau Veritas. Recently, we have safely handled the T75 LNG gas tank at our facility. Zodiac is also signatory to Responsible Care.

Can you elaborate on the technology used in the facility – The German made cleaning machinery set-up from Weidner?

We are the first facility in India to have a fully automatic ISO tank container cleaning system with advanced German technology from Weidner. Weidner is a German company with over 40 years of experience in the special cleaning equipment. They have set standards in the cleaning equipment industry due to their innovation power and high quality. The system is user-friendly, high performance, low maintenance, robust and efficient. It has fully automatic cleaning procedures through various cleaning programs which can be done anytime by the operator. The Weidner cleaning plant also comprises a scrubber unit and steam generator.

How has been the response with respect to ISO tank and road tank cleaning facilities? How are you providing quality service?

The response is extremely good from various stakeholders in the trade. We have not only met their expectations but were able to provide world class cleaning, testing, and repair services in India which till date was not available.

Our quality services have prompted various customers to bring their ISO tank container across the globe to our facility in India for repairs and cleaning. This will help bring more business into India. Besides ISO 9001, ISO 14001, and ISO 45001, various reputed chemical manufacturers and global ISO tank operators have audited and approved the facility.

How do you ensure regulatory compliance with respect to achieving Zero Liquid Discharge?

Zodiac Tank Container Terminals is fully compliant with all applicable regulations and best global practices related to health, safety, quality, and environment. The company has an Effluent Treatment Plant (ETP) which has Zero Liquid discharge consisting of aerators, double RO, electrode system & evaporators and issued a Red Category license by Maharashtra Pollution Control Board. Being ISO 9001, ISO 14001, and ISO 45001 standards terminals, periodic audits help us in maintaining our standards.

Environmentally friendly technologies adopted by Zodiac to promote a clean and green environment? Key initiatives by the company to help customers achieve sustainable practices in the shipping and logistics sector?

We have set up the facility with an aim to provide an international standard of cleaning with environment care at its core. The German made tank cleaning equipment from Weidner is most efficient and has measures for noise containment, low energy consumption at high efficiency, use of biodegradable detergents, water and energy saving techniques, etc.

Our facility is fully compliant with all applicable statutory regulations including Maharashtra Pollution Control Board. This facility is first of its kind to operate on solar power in India. Zodiac Tank Container Terminals is an ISO 14001:2015 certified company and promotes and imbibes best practices in the environment. Customers using our facility are indirectly achieving sustainable practices in the logistics industry.

In 2022, the company successfully commissioned a 150 kWp rooftop solar power generation plant at its Khalapur facility. How does this facility help you in terms of providing green and clean energy?

Towards our initiative to promote a clean and green environment, Zodiac Tank Container Terminals has been at the forefront in adopting environmentally friendly technologies to safeguard nature, climate and communities. In 2022, we successfully commissioned a 150 kWp rooftop solar power generation plant at our facility. This initiative is first of its kind in the ISO tank container and road tanker cleaning & repair facility in India. Our depot is entirely consuming electricity generated from solar power plants. It has been recognized by our partner Oorja Solar which is a testimony towards our commitment to promote a cleaner environment and inspire communities to adopt similar methods.

How is the company developing highly customized services in collaboration with its customers? Any examples?

Zodiac has been on the forefront of providing customized services to its customers. Cleaning of road tankers carrying chemicals and edible oil/products in a fully environmentally compliant as per regulations is one such successfully developed service. For ISO tank containers, besides top-class cleaning standards including scrubbing/steam treatments we have created fully in-house capabilities of major repairs which are approved by reputed classification society/certifying authorities.

We will soon be commencing re-furnishment of ISO tank containers. With fully equipped workshops, professional welders/manpower, and world class quality standards, we are creating Zodiac Terminal as a cost effective hub in the region for carrying out extensive repairs of ISO tank containers, placing India on the map for many globally reputed ISO tank operators.

How is the company striking a balance between environment-friendly policies and sustainable growth in future?

It is very important for any chemical cleaning facility to comply with environment related policies applicable rules and regulations being fully implemented. We have been at the forefront in implementing various environment-friendly initiatives as mentioned earlier and we shall continue to do so with support from more chemical customers/ISO tank operators which are adopting such practices across their supply chains, which is a norm today, Zodiac Terminal is confident of achieving long term sustainable growth in this initiative.

July 08, 2023

Global trends in water treatment chemicals and ion exchange resins market?

The global ion exchange resins market, even in its maturity stage, is growing at an impressive CAGR of 4.2% and is projected to reach US $2.2 billion by 2025. The growth trends are already visible in APAC countries and emerging economies such as India, China, and Brazil which offer many untapped and unexplored opportunities.

The trend in growth strategies adopted by companies in this business includes development and launch of new products through sustained research & development initiatives, mergers and acquisitions, and investment in brownfield and greenfield projects. In order to sustain the robust demand from major ion exchange users like thermal power plants, chemical and petrochemical industries, steel, rising number of nuclear power plants, and high purity ion exchange resins for the pharmaceutical and electronic industries.

Expandable markets for ion exchange resins also include life sciences through bio-pharma applications and production of ultrapure water for solar/semiconductor applications.

The global water treatment chemicals market is also growing at a healthy CAGR of 4.4%. The growth can be attributed to growing requirements of utility and process chemicals from sugar and ethanol, petrochemical and refining, steel, alumina, and geothermal power generation, especially in emerging economies.

The global trends also indicate that the major factors for the growth of water treatment chemicals are increasing demand from chemical treatment of wastewater in South-East Asia. Further, it is predicted that the market for water treatment chemicals will grow due to demand for clean water in mining, pulp and paper, chemical process, oil & gas, and power plants. Coagulants and flocculants which dominate the market with largest market share for chemicals will continue to see good growth for use in water treatment in developed economies like North America and Europe.  

Global water treatment chemicals market size is projected to grow from US $39.1 billion in 2021 to US $61.1 billion by 2026 at a CAGR of 9.3% whereas global ion exchange resins market is expected to reach US $2.26 billion by 2026. How are you planning to leverage these opportunities?

The growth momentum in ion exchange resins and specialty water treatment chemicals is quite good despite the slowdown in demand, earlier due to the pandemic and presently because of the geo-political situation in the Eastern part of Europe. This is mainly due to preference of Indian customers for our products and associated services. Our ion exchange resins and water treatment chemicals have good acceptance in global markets where we already have a presence. Robust CAGR, diverse range, customization and consistency in quality, and timely supplies, will help the company to benefit from growth of these products in coming years.

Company's financial performance in FY 2022-23? Forecast for FY 2023-24?

For nine months of FY 2022-23, on a consolidated basis our operating income increased 24% YoY. Profit after tax increased 45% on a YoY basis. We also expect our operating income for the FY ending March 2023 will be in the range of 25-30%. Considering a good backlog of orders we predict our growth in FY 2023-24 should be equally good.

The company has a revenue mix of Engineering (58%), Chemicals (34%), and Consumer Products (8%). Do you see any change in revenue mix in FY 2023-24?

We do not anticipate any appreciable change in the revenue mix in FY 2023-24.

Key achievements of Ion Exchange (India) Limited in FY 2022-23?

The company witnessed steady order flow, both in the domestic and international market for engineering, chemicals, and services. This includes a 40 MLD seawater desalination project for a leading EPC company in North Africa. We also received EPC contracts for desalination and complex waste treatment from one of India’s largest offshore oil exploration units. Other significant orders include complete zero liquid discharge plant at Indian Oil Corporation, Panipat Refinery at a contract value of Rs. 343.36 crores, a turnkey contract from Indian Oil Corporation’s Panipat Refinery capacity expansion at contract value of Rs. 726.13 crores. The scope of work includes supply of water treatment plant including reverse osmosis based demineralization plant, condensate polishing unit, zero liquid discharge plant with comprehensive operation & maintenance for two years and annual maintenance charges for five years. We have also received several EPC contracts for water treatment, recycling and complete zero liquid discharge plants from leading companies in paint, food & beverages, steel, textiles, to name a few. Our Zero B range of home water solutions also had good growth in a highly fragmented market dominated by several regional unorganized players.

In FY 2022-23, the company has also bagged orders from NRL. What are you doing in the NRL?

NRL (Numaligarh Refinery Ltd.), for Assam location has awarded a contract for design, supply, construction, and erection & commissioning of 4X250 m3/hr resin based DM plant and 2X120 m3/hr for Condensate Polishing Unit. Further, our scope also includes pre-treatment of raw water by 9 X 400 m3/hr Horizontal Dual Media Filters and 2X383 m3/hr Rapid Gravity Sand Filters.

The company has an approximate total order book of Rs. 2,923 crores with more than Rs. 8,405 crores in the bid pipeline as on December 22, 2022. How are you planning to leverage these enquiries?

With the current order backlog and faster conversion of orders from the bid pipeline, we see a strong visibility for sustaining our growth in the next 2-3 years. We are well placed to undertake a significantly increased pace of execution in the coming years, in line with our customers’ expectations.

The company has seven manufacturing and assembly facilities across India and one assembly facility each in UAE, Indonesia, Bangladesh, and Saudi Arabia. Any plans of increasing manufacturing and assembly facilities in FY 2023-24 and Capex investment in greenfield and brownfield expansion?

Consistent with increased demand for ion exchange resins, we have planned a greenfield expansion project for manufacturing world-class ion exchange resins in Roha, Maharashtra. The state-of-the-art manufacturing facility will also be aligned with internal sustainability goals and environment quality management practices.

Exports contribute around 29% of total sales to Africa, Japan, Middle East, Russia, South East Asia, Europe, UK, USA, Canada, and neighbouring countries. Are you looking to enter the South American and Australian market?

For nearly three decades we have built a favourable position as a reliable exporter of quality ion exchange resins, water treatment plants, chemicals, and services. The plan is to further consolidate our position in these geographies and increase business volume with existing and newer products and technologies, all backed by efficient after-sales-service in these regions. In the current year, we have formed a European subsidiary for penetrating the European market as part of our sustainable growth strategy.

R&D activities undertaken in FY 2022-23 and plans for FY 2023-24?

The state-of-the art R&D and technology centres manned by scientists and technologists have been the strength of our company since 1965. Apart from synthesis of new chemistries, polymers, formulations, R&D centres have developed specialty water treatment chemicals using green chemistry thereby offering our customers in India and abroad environment friendly products meeting their sustainability ESG goals.

Our technology centre has developed several engineering products and processes for separation, purification, and concentration using novel membranes, ion exchange resins, adsorbents and thermal evaporation processes benefitting a large number of industries. Some of these exciting commercialized technologies include Zero B Hydrolife range of alkaline water purifier machines, standardized range of state-of-the-art high purity water system for artificial kidney dialysis, the Quencher series of Bottling plant – an innovation that fulfils the processing need to replace plastic with glass bottles for hospitality industry.

Company's future strategy focuses on three pillars: Increasing export volumes for resins; Newer chemistries and formulations; Capacity expansions to meet increased demand in local and international markets and increasing market share in domestic markets with ‘Make in India‘and China + strategy. How are you planning to move in this direction?

We are excited by the success of world-class membranes (UF, RO, and NF) supplied from state-of-the-art manufacturing facilities in Goa to a large cross-section of customers including OEMs. With earlier than planned capacity expansion we are now aiming to further increase our market share in India and to export membranes to geographies where we have local presence. We will also continue to improve operation efficiency and operational throughputs along with various capacity expansion plans to take advantage of the China+ strategy.

CSR projects executed in education, health, and hygiene in FY 2022-23 and plans for FY 2023-24?

Ion Exchange is committed to sustainable development and through its CSR arm – Ion Foundation, has been engaging in various social and community initiatives in the health, water, education, women empowerment, agriculture sectors over the last many years. These initiatives undertaken directly by the company and also through various organisations, are majorly spread across Maharashtra, Telangana, and Gujarat. In FY 2022-23, our activities included providing equitable, inclusive, high-quality and sustainable education through various initiatives focussed on education infrastructure, innovative learning methodologies, supporting NGOs for the Science on Wheels program, providing after-school support and scholarships, to name a few.

On the healthcare front, our CSR initiatives aim at providing quality and affordable healthcare services. We have been supporting the Indian Red Cross Society, a unique humanitarian organization that plays a pivotal role in providing safe blood transfusion services to patients suffering from Thalassemia Major. Last year, we helped support almost 6,000 patients through our initiatives.

We also continued to provide safe drinking water to various schools/residential care units for the underprivileged/disabled people in states of Maharashtra, Gujarat, Tamil Nadu, and Delhi by setting up RO water plants across urban and rural communities. Initiatives planned will focus on Sustainable Development Goal 6 (SDG 6) and include providing adequate access to safe drinking water in high-water-risk communities or households; improved hygiene, and sanitation practices. The key objective will be to benefit close to one lakh people directly and indirectly by March 2024.

When are you planning to achieve net carbon zero and plans for achieving it?

We have definite plans for investments to become net carbon zero by the year 2032. This includes sustained transition from use of fossil fuel to renewable, maximizing use of alternate sources of water.

July 07, 2023

2023 trends in Construction Chemicals, Textile Chemicals, Carpet Chemicals, Leather Chemicals, and Paper Chemicals?

The industry is in sync with India's growth with a country focused on textiles and construction. We expect growth in textiles and construction to be around 12%.

Company's financial performance in FY 2022-23? What's the forecast for FY 2023-24?

In FY23, Jesons Industries Limited has shown a flattish volume growth and forecasts a volume growth of around 25% in FY24.  

Revenue mix within India and outside India for FY 2022-23? What will be the revenue mix in FY 2024-25?

In FY23 exports contributed 26% of overall revenues whereas within India it was 74%. In FY24, the company is planning to increase its share of exports further to touch 28% of overall revenues.  

The company is focused on Specialty Coating Emulsions (SCE) and water-based Pressure Sensitive Adhesives (PSA) in tape and label segments in India. Any new developments on this front?

Our technology centre at Turbhe, Navi Mumbai is churning out new products in the SCE and PSA categories for different applications. We are also in talks with a few global prominent players for collaboration.

Capex investment in FY 2022-23 and projects/facilities where the company has invested? Capex plans for the company in FY 2023-24 and how will this help the company in the long term?

In FY23, the company expanded capacities in Roorkee, Chennai, and Mundra locations. Capex plans for FY24 include a new technology centre in Navi Mumbai and a new manufacturing site at Saykha, Gujarat. With these expansions, we expect to introduce innovative products and show robust growth in the coming years.

The company holds about 30% market share as a specialty coating emulsions (SCE) supplier in the Indian paint sector? How does the company plan to increase it further? Any new product launches in the offing?

Jesons has several new products in the pipeline in the SCE category for various applications and end uses. We are also in talks with several players for joint ventures and collaborations which will help us increase our market share.

The company's portfolio of 170 products are marketed under seven different brands. Have you made any additions to this portfolio in 2022-23 or plan to do so in the near future? 

Yes, it is a continuous process and we have added several new products to the list. Our pipeline remains strong for the coming few years.

What is the total installed capacity across six manufacturing plants and how much additional capacity added during FY 2022-23? What is your current capacity utilization and strategy to improvise it further?

In FY23, the company’s capacity was around 283,000 MTPA with capacity utilization at around 65%.  

What are the key innovations undertaken at the company's DSIR recognized R&D centre? How will these innovations make an impact on the company and society? 

Innovations in Jesons are focused on enhancing customer productivity, delivering parallel innovative solutions, minimising impact on nature, and expanding our product adjacencies. The company is also focusing on minimizing natural resources such as water by developing high polymer content ready to use pressure sensitive adhesive for tapes and labels applications.

Focus is also on products that enhances customer productivity by running at higher speeds on the coater line, safer in-compliance with FDA, and with highest quality standards products for packaging adhesive applications such as lamination, side pasting, etc., CMR free products for furniture adhesive applications; Coating binder which acts as scavenger for carcinogenic emission in the atmosphere; Development of green paint binders with latent crosslinking technology to enhance paints shelf life; Elastomeric coatings using sunlight for crosslinking; Moisture barrier coating for reducing water demand required for concrete curing; and using in-house products as raw materials for formulating competitive high-performance construction chemicals.

The company has received prestigious Responsible Care certification from Indian Chemical Council (ICC). How will this strengthen your commitment towards future sustainability goals?

Jesons Industries Limited is a Responsible Care (RC) Logo Certified organization which is an internationally recognized and global voluntary initiative through ICCA internationally and ICC in India. RC addresses community concern about chemicals and their impact on people and environment during processing, transportation, and use. This helps us to build trust and confidence with stakeholders i.e. employees, community customers, suppliers, contractors, and government.

RC covers process safety, employee health and safety, pollution prevention, emergency response and communication, distribution, product stewardship, and security. RC logo is a symbol of commitment towards EHS excellence and thus helps us to strengthen a move towards sustainability.

Level of automation and digitalization projects carried out in FY 2022-23? How do you plan to move ahead on this front both on brownfield and greenfield projects? 

We are currently at 75% automation in our plants and wish to enhance it to 90% by 2027.

CSR projects undertaken in FY 2022-23 and plans for FY 2023-24? 

We have undertaken several CSR projects for promotion of education and healthcare. We have also carried out CSR activities towards the Prime Minister Relief Fund (PMRF).

How is the company striking a balance between environment-friendly policies and business growth? Key sustainability initiatives of the company across various segments?

In the energy sector, the company has installed 60 kw solar panels at Mundra; In water management, the company has developed a water harvesting system at 8 kl/hr at Mundra; In waste management, the company is opting for paperless work procedures at Mundra; Reuse of drums; In biodiversity we are increasing green belt with plantation of 1,588 trees at Mundra; In supply chain, the company is deploying nicer globe tracking system into transported vehicles; and Journey Risk assessment of transportation. Compliances with national environment compliances. Prepared & implemented QEHS (Quality, Environment, Health and Safety) policy & its goal and third party certification for our system like ISO and Responsible Care. The company is going to implement the EcoVadis and ESG certification process.

When is Jesons Industries planning to achieve Net Carbon Zero? What are the different milestones set up by the company to achieve it? 

We have appointed PwC as our ESG implementation partner and the milestones are under development.

July 05, 2023

How would you rate the company's financial performance in FY 2022-23? What's the forecast for FY 2023-24?

Our performance for FY22-23 was as per our projections and aspirations. In FY23, we celebrated crossing the milestone of Rs. 3,000 crore topline with 23% EBITDA. Our FY23 topline is 65% more than the previous year. The continuous growth and success of our business is cemented on our robust, sustainable business model, powered by the innovation and quality of our products, and commitment of our team.

Performance of the company in different segments - Aluminum, carbon black, construction chemicals, specialty chemicals, wood preservatives, coal chemicals, tyres, mechanical rubber goods, and masterbatches in FY 2022-23. What is the future roadmap?

In FY23, we became the major exporter of solid CT Pitch globally. 40% of the Aluminum segment in India consumes our products, we integrate operations, provide uninterrupted supplies, ensure superior quality, and adhere to best industry practices for manufacturing, supply chain management, and sustainability. Our commitment to quality, stringent safety protocols and standards, ethical governance principles, and industry certified processes sets us apart in the industry.

With the projected expansion of the aluminum business as well as reduced CT Pitch availability from China, we have an opportunity for organic growth. We are installing a 500 KTPA Coal Tar distillation plant at our second site in India and with state-of-the-art specialty chemicals complex of import substitution products to cater several industrial applications other than Aluminum industry.

Capex investment in FY 2022-23 and projects/facilities where the company invested? Capex plans for the company in FY 2023-24 and how will these investments help the company in the long term?

In FY23, we invested strategically in various projects, with Capex exceeding Rs. 525 crores, to expand our current production capacities and development of a township for our employees and their families.

For the upcoming FY24, we plan to invest more than Rs. 1,200 crores in projects like – setting up a new carbon derivative complex in Jharsuguda, Odisha; to increase the capacity of our carbon black, captive power plant at Vijayanagar; construct another new township and many more. These investments will help double our topline by FY26.

By when Rs. 550 crore projects for adding 1,15,000 - 2,15,000 tonne capacity in Karnataka will get completed? How will this project enhance the overall capacity, market share, and overall revenue of the company?

We're making good progress on our project in Karnataka, and it is projected to be completed by the first half of 2024. This will almost double our Carbon Black capacity, giving us a major share of the domestic market, and further enabling us to compete in the international market. We anticipate this project will generate revenue of approximately Rs. 900 - 1,000 crore annually. This plant will produce niche grades for high performance automobile tyres.

The company has collaborated with edible oil refiner Sri Anagha Refineries to construct molten pitch storage tanks with capacity of 10,000 metric tons at Mangalore port. Expected completion date and long-term outcomes in terms of scaling up coal tar pitch production?

Currently, we are focusing on creating India’s first ‘liquid CT Pitch port’ for exports. The facility will be ready before the end of Q1 FY24. This port will enable us to expand our reach in international markets for our products. By leveraging the utilization of this facility, we anticipate an estimated 3 lakh MT of exports in the next five years and adding over Rs. 2,000 crores to the top line.

What are the key R&D projects under progress by the company? How will these innovations make an impact on the company's revenues?

We are innovating new grades of Coal Tar Pitch and of Carbon Black. We are continuously working to produce high quality Carbon derivative products, such as Naphthalene, Indene, Anthracene, Phenols and Cresols. These products will substitute imports in India and have the potential to significantly increase our current business revenue.

Level of automation and digitalization projects conducted in FY 2022-23? How do you plan to move ahead on this front both on brownfield and greenfield projects?

Currently, our plants are automated using DCS systems, and we have complemented this with digital solutions for greater process efficiency. We are now driving an overall organizational digitization program, in collaboration with one of the top consultants, which will enhance our existing operations and future projects and further upgrade us to Industry 4.0 level within the next 2-3 years.

CSR projects undertaken in FY 2022-23 and plans for FY 2023-24?

In FY23, we strengthened our Corporate Social Responsibility (CSR) projects in sectors like healthcare, education, sports, and infrastructure development. These initiatives have positively impacted over 3 lakh people. We plan to continue our efforts of strengthening educational infrastructure by providing basic educational amenities, drinking water facilities and digital classrooms. We are further prioritizing preventive healthcare through the Mobile Health Clinic initiative, which has impacted 32,000 individuals in 8 villages. In the coming years, we intend to extend our support to women’s Self-Help Groups in the villages through livelihood interventions within the vicinity.

How is the company striking a balance between environmentally friendly policies and business growth? Key sustainability initiatives of the company across various segments?

We constantly integrate sustainability into our design & operations and the concept of circularity has been designed to ensure minimum wastage and emissions across the manufacturing facility.

Our second sustainability report was published in December of 2022 based on the Global Reporting Initiative (GRI) Standard. We have planted 47,500 trees to help minimize air pollution. We are continuously optimizing our operations and usage of non-renewable utilities like water and power which is prioritized in our consumption trends of utilities per metric ton on a year-on-year basis. 

Our company is committed to sustainable business growth, providing a secure source of captive raw materials and long-term contracts. Additionally, our manufacturing methods reduce emissions by using cleaner fuels, low Sulphur feedstocks, and zero discharge.

The residue gases produced during our process is used to generate steam and electricity in our captive power plant. This helps us to reduce our carbon footprint significantly, to the extent that our product Carbon Black has nearly 20% less footprint compared to our domestic peer industries. Also, our value-added product which is a synthetic graphite for Anode material has nearly 77% less CO2 footprint compared to peers. 

Our CSR and CER goals are aligned with the United Nations' SDGs for Good Health & Wellbeing, and economic growth, zero hunger, quality education, sustainable cities and communities, clean water and sanitation, and gender equality. We have contributed to supporting the elderly, Covid-19 care, and especially abled people, as well as hospitals. Over 4 lakh lives have been benefited in the last 4 years. Quality education is another goal we are actively supporting; we have upgraded teaching & learning facilities in 4 Direct Impact Zone villages and developed model libraries which have helped more than five thousand students.

We are also working to support animal welfare trusts and restore ecological balance through afforestation and wildlife conservation. We have contributed to women empowerment, sports development, village street lighting, livelihood programs, relief funds, solid waste management programs, and many other initiatives. Our efforts towards sustainability are well recognized by many rating agencies. We are a Responsible Care logo holder and EcoVadis -Silver Rated company.

We upgraded our ISO certifications of – 9001 for QMS, 14001 for EMS, 45001 for OH&SMS, 50001 for Energy Management System. Also, we are certified by IATF 16949:2016 – Automotive QMS, ISO/IEC 17025:2017, ISO 27001:2013 - Information Security Management System, ISO 28000: 2022 – Supply Chain Security Management which highlights our approach to data credibility and integrity. We are now preparing for SA 8000 certification, which is an international certification standard that encourages organizations to develop, maintain and apply socially acceptable practices in the workplace.

When is Epsilon Carbon planning to achieve Net Carbon Zero and what are the different milestones set up by the company?

We are continuously working through various initiatives to reduce our environmental load and carbon footprint. These efforts are gauged, and monitored by doing life cycle assessment through recognized third-party experts. Currently, we are in discussion with one of the top consultants to design a long term ESG roadmap for the organization and charter a time bound milestone plan.

July 01, 2023

Haropa Port is the fourth largest North European Port. What's your plan for 2023? 

Eighteen months after its creation (merger of three ports - Le Havre, Rouen, and Paris) and following a historic year in which three million TEU was surpassed, Haropa Port has consolidated its positioning in the group of Northern Range Port. In 2022, Haropa Port was one of the only ports in Europe with a progression of container traffic. In addition to the remarkable resistance shown by traffic levels, key milestones have been achieved, foremost among them is the announcement by MSC TiL last July that they would be investing €700 million till 2028 to triple container volume, making us a major port of entry for France and Europe and giving us the means to develop river-based services to the Paris basin.

What makes Haropa Port different? Would you talk about the Green Logistics Corridor?

The model of Haropa Port is based on its ability to provide a unique green corridor to connect the maritime ports of Le Havre and Rouen to the consumption region of Paris and to NW Europe. As an efficient alternative to a very efficient motorway network, the Seine River and the railway system are the backbone of Haropa Port. Our port system includes more than 25 terminals all along the Seine River. It means 25 different places along the Seine River to load and unload containers.

In 2022, rail and river transport on the Seine Axis were increasingly seen as an alternative to road for goods import/export, the modal shares of rail and river expanded from 12% to 13.3% for containers exiting Le Havre. Operators have completely understood the complementarity of maritime terminals and inland terminals. Some goods need to be handled in the maritime port of Le Havre to be transferred by truck in a few hours to Paris. Other goods could be transferred by rail or inland waterways to Rouen or to Paris and/or to various other industrial hubs in NW Europe within a couple of days without any kind of congestion, taking advantage of the possibilities of massification offered by rail and river transport.

Moreover, Haropa port displays a smart cargo community system completely connected to its port community system to follow the flow of goods from vessels arrival to the final delivery.

At 110 million tons/year, Haropa Port is a global heavyweight. How are you planning to increase traffic in the next five years?

Haropa Port is definitely a multi sector port combining container, dry bulk, liquid bulk and grain traffic. Haropa Port includes maritime and inland waterway traffic, which makes our model particularly resilient in a context of crisis. We continue to invest on our port infrastructure to extend our capacity to accommodate more traffic. In 2022, we have finalised the maritime works to add 700m of quays which will complete the existing 3500m of quays in Port 2000, our main container terminals area. 

In 2023, to create a specific access for INW barges, we will fulfil the story of Port 2000 started 20 years ago to have reference port terminals able to welcome the largest vessels in the word, safely, efficiently, and in deep sea conditions. These nautical conditions are unique in the Northern EU.

In 2023, we will also start the civil work to create a new port of 100 ha on the Seine River 50 km from Paris. This project is unique in port history as we have not created a new port in the last 50 years. This aims at fostering the transport by Inland waterways for construction and recycling activities.

How has the Russia-Ukraine war affected the business dynamics? How did you tackle the challenges arising out of the geo-political situation?

The Russia-Ukraine war has led to major geopolitical disruption between Russia and Europe, in addition to fears of an energy crisis. Also, the last summer’s drought notably affected certain types of agricultural production in France and the rest of the world. Nevertheless, despite these difficulties for Haropa Port, the past year was a year for a change of scale and high resistance to turbulence and defined resilience. In particular, for the export of Cereals, 2022 was one of the best years of the decade with 8.6 metric tonnes of grain shipped this year (+12%). It was definitely a good trading year (quantity/quality). Due to efficient port logistics, our producers were among the first sellers to propose grains to the market. We were able to sell our shipments to Israel, Tunisia, Saudi Arabia, and Iran - destinations rarely served by France in recent years. These grain volumes were additional to substantial purchases by Algeria, Egypt, West Africa, countries which have suffered from an intense drought this year. 

How are you gearing up towards making Haropa Port a Green Energy hub?

Haropa Port aims to be a Green hub by:

* Development of low-carbon port/industrial zones; Production of green energy from biowaste;

* Deployment of a network of CNG stations; and New Industrial Cluster will be implemented in the coming years.

* Development of low-carbon port/industrial zones: An MoU has been signed on the Seine River by chemical groups such as Total, ExxonMobil, Air Liquide, Yara, and Borealis to lead a major Carbon Capture Utilisation and Storage (CCUS) project. Its first step aims at reducing carbon emission by 1.5 million tons/year by 2030. In the context of this CCUS project, we also aim to put in place one of the first CO2 export hubs in Europe.  

* Production of green energy from biowaste: PAPREC, a major waste management company, will be operating the future methanisation plant for Greater Paris household biowaste at the port of Gennevilliers.

* Deployment of a network of CNG stations: A new generation of multi-energy service stations will be implemented in our main platforms in the Paris Région.

* At the Port-Jérôme port/industrial zone (40 km from Le Havre Port) a new industrial cluster will be implemented in the coming years – “Plastic Valley” – dedicated to recycling and producing latest-generation renewable plastic is currently being organised, most notably around the projects of the chemical groups Eastman and Futerro. The site will also see production of renewable hydrogen with Air Liquide’s Normand'Hy Project which has an unprecedented capacity of 200 MW to be operational by 2025.

* Haropa Port will be OPS ready by 2028 for container and cruise vessels – two years before the European legislation commitments.

Haropa Port has announced a Euro 700 million investment at Le Havre. What's the update on this front? 

Terminal Investment Limited (TiL), the ports division of leading liner Mediterranean Shipping Co (MSC), has taken total control of the TPO/TNMSC container terminals at Le Havre, and announced in July 20222 a €700 million investment program. This program will ensure the terminal hub can handle the largest boxships afloat. This ambition promises to shake up the port hierarchy in the competitive group of Northern Range European Ports system and help Le Havre become an even more significant gateway point for the French cargo market, and beyond. TiL/MSC is going on this program by installing new gantry cranes and also extending the terminal’s storage capacity with the installation of fleet services at six berths. The new gantries will be electrically powered and the port will provide shore power for ships.

Haropa port is also focusing on the Digital Transformation Project. What's the update on this front?  

Haropa Port is totally focused on its path breaking digital initiatives and innovations in the technology domains for more transparency, greater facilitation, and ecological transition. Haropa Port is the first French port to switch to 5G, making changes in the Port Community System aimed at harmonising the digital tools for port call management along the Seine Axis and preparing for the port one-stop-shop S-WiNG, and S)ONE 100% digital and paperless procedures and solutions, the creation of the Easyport software program for facilitation of port goods throughput, a plan for digital twinning with the port of Rotterdam as part of the MAGPIE project in order to consolidate the port’s environmental competence, AI placed at the service of port call predictions to reduce greenhouse gas emissions, among others.

By means of these many innovations, Haropa Port is setting out to make gains in efficiency, rapidity, and flexibility, to provide its customers with greater transparency and to foster the ecological transition.  

Haropa Port does have plans to receive the first green hydrogen molecules on its platform. If yes by when and how?

In addition to projects to produce green H2, like the Air Liquide Normand’Hy project with an unprecedented capacity of 200 MW to produce 28,000t of H2/year by 2026, Haropa Port is also working on its capacity to import H2, by mobilizing its storage facilities. The EU commission foresees that the energy mix in Europe will rely on production and on import of green H2 to answer the needs by 2030.

How is Haropa Port helping in enhancing the trade between India and Europe? What is your future outlook?

The global trade between Haropa Ports and the main Indian Ports continues to grow with a strong growth of over 7-8% per year on imported traffic from India to France. We already have a strong position to import textiles, clothing, vehicles, transport equipment, and chemical products. We believe there are many opportunities to develop sectors like pharma, as Haropa Port is in the middle of a Pharmaceutical Valley on the Seine River. Our ambition is also to further develop reefer traffic as we are the main Port for reefer products in France: we also have the facilities and we have developed a strong know-how to manage this kind of traffic.  

Key benefits for Indian chemicals and other industries if they prefer the Haropa Port for business?

One of the key assets of Haropa Port is to be able to provide turnkey greenfield or brownfield lands for new investments. We are one of the only ports in Europe to provide large plots of more than 40 ha for the settlement of future plants. Moreover, when you choose to settle on the Haropa Port network (we control more than 16 000 ha on the Seine River Valley), you will join an existing industrial cluster with all the facilities needed (electric, water grids, and pipelines) and you will also be able to develop synergies, circular economies with the neighboring firms. 

What will it take to build a world-class chemical hub in India?

The most important characteristic for a hub is to be connected to other chemical valleys around the world. The strong maritime relation between India and France will enhance the position of the Indian chemical hub to import the products it needs and to export its production. The common ambition is to strengthen the supply chain for all the chemical actors in India and France.

June 29, 2023

In 2023, Solvay is celebrating 160 years of its existence. Please list some of the key achievements, which have helped Solvay make a difference in the world of chemicals?

A young Belgian named Ernest Solvay made a technological breakthrough, creating a more environmentally friendly ammonia-soda ash process, which changed the way glass was made. This allowed many industrial revolutions to happen. With this innovation, Ernest set up a company called Solvay, which was created with science, ingenuity, and globalization. This magical combination has had a positive role in the progress of humanity. That was 1863. Today, we are the 7th generation of builders of this extraordinary human adventure. We received this heritage as a gift, with the duty to build on our legacy and to pass it on to generations to come.

Ernest believed that science would derive the progress of humanity. He brought the brightest scientific minds together and these meetings laid the foundation of quantum physics. The Solvay conferences laid the foundation for future quantum physics. In addition, the Solvay Institutes further advanced research in Psychology and Social Sciences. He believed in social caring and put a strong emphasis on the well-being of employees.

The company survived two world wars, the Great Depression, and the financial crisis. The company has been at the heart of four industrial revolutions and emerged stronger from the Covid pandemic in a multipolar world, continuing to demonstrate more than ever that we are essential.

In the 19th century, Solvay enabled populations to access light, hygiene, and cleanliness. Later, the company explored opportunities in life sciences, solving health problems for humans and animals. The company multiplied solutions for a cleaner mobility, safer air, drinkable water, smart connectivity, and beauty. More recently, the company enabled solar impulse to tour the world without a single drop of fuel. These are examples of how our chemistry is part of the solution to save our planet for generations to come.

Our chemistry is the cornerstone of a sustainable future: it enables EV batteries, green hydrogen, circular materials, and bio-based solutions. Over the past four years, the company continues caring through The Solvay Solidarity Fund, which donated more than 9 million euros to employees, families, and communities facing hardship. The company continues raising the bar and delivering on its growth strategy. We are proud of our Solvay One Planet achievements and we continue driving the Solvay One Dignity towards more inclusion, equity at the service of diversity.

As a global leader in materials, chemicals, and solutions, Solvay brings advancements in planes, cars, batteries, smart and medical devices, and water and air treatment, to solve critical industrial, social and environmental challenges. How is Solvay contributing to the innovative solutions thereby helping a safer, cleaner, and sustainable future?

At Solvay, we believe that solutions to major humanity challenges will be led by scientific breakthroughs, while taking care of our legacies. Today, we put our expertise at the service of some of the most pressing issues of our planet. Through Solvay One Planet, we focus on areas where our innovation and sustainable solutions can have the biggest positive impact, directly and indirectly, in line with the ambition and requirements of the UN Sustainable development goals (SDGs).

Underpinned by our Purpose and G.R.O.W. strategy, our sustainability agenda will be brought to life by a set of clearly defined programs and actions, around measured ten key goals and enabled through a set of concrete actions and projects.

The journey is long, but our commitment remains stronger than ever. Like all industries, we are part of the problem, but we can also be part of the solution, by putting our activities at the service of sustainability and circularity. In fact, despite the major disruptions caused by Covid-19, we increased our ambitions in 2020, raising the bar in terms of our climate and resources objectives, while continuing to promote a better life for all Solvay employees.

All these actions are the consequence of the reinforcement of our Solvay One Planet goals. By 2030, we will work to fight climate change by phasing out coal-based energy and cutting greenhouse gas emissions by 26%; we will reduce resource consumption by generating 65% of our revenue from sustainable solutions and more than doubling our circular sales; lastly, we will continue to improve quality of life by aiming for zero accidents and accelerating inclusion and diversity in our workforce.

Additionally, Solvay is hard at work building a circular ecosystem, reaching out to our partners all along the value chain in order to use more waste as a raw material, boost recycling, and promote the switch to biomass energy.

Some of the key achievements of RIC Vadodara center in FY 2022-23?

R&I center Vadodara was inaugurated in 2012 and recently completed 10 years in India. In the past decade, the center has been recognized for its high standards of safety culture by both Solvay and external agencies. Recently, the center received the British Safety Council Award distinctions for its safety performance. “Safety KPIs are important to us. Yet what is utmost rewarding is our employees go home safe & unhurt back to their families at the end of each working day” says Ankit Thakar, Site HSE manager. Ankit recently received ‘Passion for Performance’ award from the CEO’s office as a part of global recognition program in Solvay.

In the past three years, we have invested significantly in infrastructure & people, which strengthens the center’s position as a worldwide research & innovation hub. The R&I focus is increasing in the field of sustainable chemistry & digital ways of working.

In addition to that we focus on science that creates value in society e.g.: major contribution in development of products in the field of medical – dialysis membranes, medical implants, automotive & light weighting, home & personal care markets, agricultural markets, etc.

"I am a new member to the Solvay Family, joined only last year. I feel proud to work for Solvay as part of the HPC lab. It offers challenging and exciting opportunity to work on futuristic & innovative global home & personal care solutions, which are caring not just for people but also for the planet. Solvay's unique work culture focused on employee well-being and innovation leadership along with safety-first attitude sets it class apart in the industry.  The well-equipped formulation research labs are supported with best in class in-house analytical facilities to expedite the innovation process. Solvay's sprawling Research & innovation center at Vadodara with world class research infrastructure and highly diverse talent pool with experienced scientists from Indian and Global prestigious institutions offers one of the best environment to cross fertilize ideas and bring path breaking innovations to life." quotes Vishal Javia, Technical Leader (Formulations) Home & Personal Care market. 

We also provide technical support to local manufacturing plants, support development of the Indian market by creating products adapted to this market.

To enhance Solvay’s R&I innovation ecosystem, the company is joining hands with academia and partners in India. How are you leveraging this initiative in India?

Solvay R&I has reputation & connections with academia and going forward is planning to leverage it for a better future via open innovation in domains of sustainable growth. Taking the cue from DST’s focus on increased collaboration between industry and academia, we have been in touch with many institutions in the field of Chemistry, Chemical Engineering, and Data Sciences etc. for opportunities of co-creation. We are involved in different activities like: Internships, CSR, PhD sponsorship, assignment based projects, teaching/talks on industrial safety, chemistry curriculum, and talks & interactions by eminent professors from academia; and more.

How is RIC Vadodara Centre planning to leverage more than €10 bn growth opportunity in Battery Materials; Thermoplastic Composites; Green Hydrogen; and Renewable Materials and technology?

R&I Vadodara Centre is matching the pace of growth with Solvay. Work is going on in some areas of battery materials supporting clean mobility. The center is significantly focusing on renewable materials and sustainable chemistry via various ongoing projects. 

Are you planning to ramp up work force in RIC Vadodara Centre? If yes, areas where you are planning to recruit and number of people you want to recruit in the next two years?

R&I Vadodara is focused on areas of organic chemistry, polymers, and material sciences. We do have plans to ramp up our work force over the next few years. We do not hire in bulk but it is as per project requirements. We are open to profiles with background in above segments with sustainability and innovation mindset.

Solvay is a materials company with very high standards in safety and ethics. The company takes care of its employees by providing a safe & employee friendly work environment. R&I center is recognized with the employee's families & local community as a great place to work. In 2021, Solvay received an award from the Economics Times as Best Place to Work for Women owing to our DE&I policies. 

When is Solvay planning to achieve Net Carbon Zero and steps taken by RIC Vadodara Centre?

Solvay is planning to achieve Net Carbon Zero by 2050 (except for its Soda ash business). Solar plant at the RIC Vadodara Centre provides upto 25% of total site energy. Going forward, we are moving towards zero waste and moving away from single use materials. R&I projects have sustainability scores as a part of the approval process. In addition to that, we are working in-line with Solvay’s One Planet Goals (published) for sustainable growth.

June 25, 2023

What new products you are launching in the Indian market?   

Our products are focused on several segments, mainly packaging, sustainability, and circularity. For example, we have a mono-material solution for packaging that enhances recyclability. The other part of our business is mainly focused on infrastructure, including pipelines and NEG which is the cable transporting the electricity. We have a lot of products to support the water safety programme, automotive, medical, and agriculture. We built 900 greenhouses in Jaipur, Rajasthan to help farmers enjoy better crop efficiency, water conservation, and farming efficiency. 

You look after the South Asian market. What are your India plans for 2023? 

India is clearly one of the most strategic markets for us. We are a Middle-East and Asia Pacific market company and we are currently among top five Polyolefins providers in the market. 

The South Asian market is leading the growth engine of the world Polyolefins market and within this market, India is the hottest spot. After meeting all sets of people including our customers, we have seen a lot of positive outlook. Our customers and stakeholders in the recycling industry are positive about the growth story. These include a few key drivers of growth among which the number one is headroom of the consumer. 

India over the last several years accumulated the growing consumption power of the middle class. This can grow only further. Another factor is the huge focus by the government on infrastructure, as witnessed in the recent budget. In this category, we have quality product offerings in gas, water, and energy projects. In downstream sub-segments, we have found whether it is consumer or B2B industry customer perspective, the requirement for premium grade is growing strongly. Going by our innovation capacity and commitment to sustainability, this will be our strength to serve the Indian market better. 

There are a lot of manufacturers in India which focus on Polypropylene and Polyethylene. How are you cooperating or competing with them considering there is a shortage? 

Rightly so, India is a net import market for Polyolefins. This requires joint growth from both domestic and international suppliers for the market to grow and support ‘Make In India’ vision for downstream segments. We as a company have a unique geographical advantage as our location in UAE is relatively not a long supply line. We can quickly address the customer needs due to a robust supply chain. 

The Indian government’s ongoing efforts on transparency and reducing tariffs are helping in not only opening up opportunities for us but also increasing trade opportunities for both countries. In the longer run, the Indian market must open up more for the international upstream players. It will help in opening the access to upstream technologies, not only for the polyolefin industry but also the downstream segments to be more robust. 

The company's fourth plant is coming up in Ruwais which will add a cumulative capacity of 6.4 million tonnes per year by 2025? How do you see the new facility helping India?  

Growth is the key story of Borouge in investment terms. In the past 21 years, we have been revamping our capacity from Borouge 1, Borouge 2, Borouge 3, and potentially Borouge 4. Last year with the successful launch of PP5, we boosted the capacity by 5 million tonnes and on top of that, it will be Borouge 4, going forward. This has supported our ambitions in the Indian market and also because of the proximity of the supply chain and also because of both the quality and volume requirements in the Indian market. This market will, therefore, be a highly strategically important market for us. 

Will you be setting up your 5th factory in India?  

Currently, our capacity will have very good agility and a robust supply chain to service. In the longer run, we do believe that the Indian market will open upstream to international players and open up opportunities and access to new technologies. This can also be very much in line with Prime Minister Narendra Modi’s vision of ‘Make in India’. If you have higher technological access to differentiated products, it will help the downstream industry regardless whether it is for domestic utilization or exports. 

You talked about infra, energy, and agriculture but not about mobility and pharma. Aren’t you interested in these two segments?  

Yes, we are very much into mobility and pharma. Our PPE product range is very much focused on syringes, and pouches for medical packaging needs. For mobility, we don’t have a local manufacturing facility but we do have OEMs to supply specifically the bumpers, interior design panels, etc. 

You talked about sustainability and circularity. What's Borouge focus? 

The circularity and sustainability form the core part of our strategy. This lies in two parts: innovation and recycling. If we look at the enabler of the circular economy on the plastic side, we talk about reducing, re-use, and recycling. On the product design side, it requires a lot of investment and innovation to provide recyclable products. 

We spend a lot of our innovation pipeline into design for recyclability. It is not only about the product itself but also the process. Then, the second part is the recycling. When the material is recyclable, we need to find ways to not allow the materials to leak into the environment but to create a full circle. We are polyolefin experts but don’t have expertise in waste management. We need to sit with the waste management experts. In the last couple of years, we have already signed twelve agreements including two in India. The collaboration with brand owners and machine equipment for packaging designs or the other applications. 

This year you are completing 20 years of India presence. Any major plans this year?  

We have a very strong team in our headquarters in Mumbai and also the Sales & Marketing teams are developing business across India. At the same time, we are not only taking care of the business development side but we are also gearing up for developing deep innovation capacities that fit the Indian market. We have a long way ahead here in India. 

Apart from the business development office in India are you looking at setting up an R&D centre? 

Over the longer run, it could be an option but in the short term we have an innovation centre in UAE that is in close proximity to our production side. We believe that this centre can serve all the needs of the Indian market. 

What is the contribution of South Asia to the overall revenue of the company? Is this the biggest region in terms of revenue?  

We are very strong in all the regions we are present currently. If one looks at the growth potential, we can clearly see a few mega trends for South East Asia, South Asia regions. Given the potential, many experts have migrated from other parts of the world into South East Asia and also India. The domestic demand is early in India and there is a rising infrastructure demand not only in quantity but also quality, making it one of the fastest growing in the entire region. We are very excited to be a part of this growth.

June 24, 2023

The company has initiated the implementation of SAP ERP across Rossari Group and completed SAP Implementation by April 2023 

2023 global trends in Home, Personal care and Performance Chemicals (HPPC); Textile Specialty Chemicals (TSC); and Animal Health and Nutrition (ANH)? 

The global specialty chemicals market size was valued at US $616.2 billion in 2022 and is anticipated to witness a compounded annual growth rate (CAGR) of 5.1% from 2023 to 2030. The growth of specialty chemicals is also attributed to the growing demand from construction, water treatment, pharmaceuticals, food & feed additives, and flavors & fragrances, among others. The demand for flavoring agents has increased as processed food and beverages have become more popular in developed nations. Further, rising customer preference for novel flavors and fragrances in food products is estimated to contribute to the market growth.  

Home and Personal Care Chemicals registered a 5% CAGR in 2022 to 2023, HPCC sector is the fanciest growing sector in the modern world, Textile Specialty Chemical is anticipated to observe a CAGR of 4.7% from 2022 to 2030; and Animal, Health and Nutrition is expected to register a CAGR of 8.8% from 2023 to 2030. 

Key milestones achieved by Rossari Biotech during FY 2022-23? Performance of HPPC, TSC, and AHN in FY 2022-23 and plans for FY 2023-24?  

One of the key milestones achieved during the year was unlocking the synergies through our acquisitions of Unitop Chemicals and Tristar Intermediates along with the investment in Romakk Chemicals which were done in FY 2021-22. This has not only expanded our capacities but has also opened up opportunities for technology and knowledge-sharing, cross selling of products, development of new product lines in adjacent Specialty Chemicals divisions as well as expansion of customer base and target geographies. Our acquisitions are expected to strengthen Rossari’s position in the Indian Specialty Chemicals space and unleash our full potential.  

During FY 2022-23, our Textile division witnessed some headwinds due to subdued demand on the back of the ongoing challenging operating environment. Our HPPC and AHN division continued their growth momentum on the back of new products, customers, and geographies.   

We remain optimistic that a stabilized macroeconomic environment will drive long-term sustainable growth and enable us to deliver a stronger performance in the future. We have been prudently expanding our business with a focus on products with better margins. We are now seeing some stabilization in the market. As the operating environment stabilizes, we believe we are well-equipped to pursue high-growth opportunities, given our comprehensive product offerings, flexible capacities, and R&D capabilities and we look to continue with our growth plans in the coming quarters. 

Revenue mix for within India and outside India in FY 2022-23? Do you see any change in FY 2024-25?

About 75% of our total revenue is contributed by customers within India and 25% by customers outside India. We are continuously expanding our footprints globally across all our business verticals. Going forward we expect that contributions from customers outside India will show growth momentum.  

How has synergistic acquisitions and strategic investments helped Rossari Biotech? How are you planning to leverage it moving forward? 

These acquisitions have ensured a greater synergy and additional dimensions like larger international exposure, pooling of related technologies which increased our technical capabilities, and an expanded product portfolio. The acquisitions have further strengthened our positions in Home, Personal Care, and Performance Chemicals with addition of new sectors of Agrochemicals, Oil & Gas, Preservatives, and Aroma Chemicals. Going forward we are planning to further scale up the cross-selling opportunities backed by an enhanced product portfolio, increase our presence in the new and existing geographies, access new technologies, and create sustainable value for all stakeholders. We envision our acquisitions to provide us with greater knowledge, expertise, and complementary growth dimensions for us to prosper together. 

Are you looking at any new acquisitions/strategic investments in FY 2023-24? Verticals where you are focusing? 

We keep exploring acquisitions/investment opportunities within our core chemistries. 

Capex investment incurred in FY 2022-23 and projects where it was invested? Capex plans for FY 2023-24?  

Our Dahej facility became fully operational in FY 2021-22. No major capex incurred in FY 2022-23. We have planned some small Capex in FY 2023-24 for projects in AHN and Textile division.   

Company is focusing on green & sustainable chemical solutions. How will this impact the company's topline and bottomline and new areas that the company is focusing on?  

Sustainability for us is a way of creating a massive change. It is about making choices keeping long-term perspectives of business, society and the environment in mind. We aim to deliver sustainable products to our customers backed by a sustainable business model. Our dedication toward sustainability is reflected in our customised, environmentally responsible, and cost effective solutions on the operational front that we constantly keep working on. As a domestic market leader in creating environmentally friendly products across all categories, we have campaigned for sustainable procedures and green chemistry as an organisation right from our outset. We believe this will be an important growth lever for us in the future as sustainable competitive advantage takes centre stage.  

In surfactants, our focus continues to be on Bio-degradable and greener products. We are also looking at Bio-surfactants where SOPHOROLIPID and RHAMNOLIPID are the focus areas. In Agro, the focus is on developing surfactant formulations which are greener and also developing formulations which are based on a combination of technicals. 

How is the company strengthening its in-house R&D capabilities to expand innovative and customized solutions for customers? New products expected from innovation funnel in FY 2023-24?  

We are constantly trying to innovate and develop products that meet our customers’ evolving requirements without disturbing the balance between the business, society, and environment. We are targeting new product formulations and the adoption of advanced technologies to create sustainable value. Rossari believes in being innovative and agile and providing customised services to customers. Our knowledge of our four pillars of chemistry and innovative product formulation is what has kept us ahead of the curve. Consequently, our R&D lab at IIT Bombay focuses on product development in these lines. With the acquisitions, we have strengthened our R&D capabilities with the addition of a new agro lab at IIT facility in addition to the existing R&D facility at Unitop, Dahej. 

Products under development include: Enzymatic Bio scouring - To drive the sustainability concept and reduction with utilities; One bath dyeing of Polyester/cotton blends, saving time and increasing productivity; Eco friendly substitute of Soda ash, a big boon to the industry reducing the BOD/COD levels drastically; Plant based softener; Antibiotic replace growth promoters; and Vitamin encapsulation products. 

Level of automation and digitalization carried out in FY 2022-23? How do you plan to move ahead on brownfield and greenfield projects in FY 2023-24? 

In FY 2022-23, the company has initiated the implementation of SAP ERP across Rossari Group and completed SAP Implementation by April 2023. This will help us in better integration within entities, better planning & reporting, and enabling faster decision making. Our Dahej facility which got operational in FY 2021-22 is a state of art, highly automated facility. Going forward, we will endeavour to bring in newer technologies and high levels of automations in all our new projects.  

Key sustainability initiatives started by the company? 

At Rossari, we believe sustainability is the key to a better and safer future and we strive to take a holistic approach towards it. This approach testifies Rossari’s commitment to providing a balanced tomorrow, built on a sustainable environment through strategic business activities. Some of our initiatives undertaken in this direction include: Introducing green chemistry through relentless efforts of ‘Greenovation’; Enhancing human wellness with innovative solutions; and addressing environmental issues through sustainable business activities by installing solar capacity in the Silvassa Plant of 50 KWP. The company started using ‘Bio-Fuel’ instead of ‘Light Diesel Oil’ which is used for Boiler, Thermic fluid heater, and Incinerator. Further we are planning to set up 100 MV solar panels across our plants and have installed aircon devices to reduce energy consumption in air conditioning units. Further, we are also planning to plant 5,000 trees in the specified area allocated by GIDC at Dahej. 

When is Rossari Biotech planning to achieve Net Carbon Zero and milestones set up by the company? 

As a responsible corporate citizen, we have implemented environmental management systems across our organisation as a step towards environmental conservation. We examine the environmental impact of all our actions on a regular basis and create continuous improvement objectives and targets. These are closely monitored on a regular basis to ensure their achievement at the individual and corporate levels. 

Some of our initiatives undertaken in this direction include: Moving towards sustainability by ensuring carbon abatement and absolute carbon reduction; No releasing of hazardous emissions or pollutants at both Silvassa and Dahej plants throughout the production process; Both facilities conform to Zero Discharge of Hazardous Chemicals (ZDHC) foundation and Global Organic Textile Standards (GOTS); and The stack monitoring data represent low carbon footprint of GHG generation at production sites. 

CSR projects executed in FY 2022-23 and plans for FY 2023-24? 

In FY 2022-23, the company has majorly focused its CSR activities towards the area of medical healthcare and support and has contributed to Rotary Trust Mulund South which undertakes Pediatric Heart surgeries for underprivileged children born with congenital heart diseases. The other major project of the company was contribution to Tata Memorial Hospital for marginalized patients suffering from Hematolymphoid Malignancies which are primary cancers of blood, bone marrow, and lymphoid organs associated with high mortality.  

The company also contributed to Rotary Club of Deonar who has arranged to set up about 10 MultiPara Monitors in the neonatal unit of Lokmanya Tilak Municipal Medical College and General Hospital (Sion Hospital). The Neonatal Intensive Care Unit (NICU) of this Department provides yeoman services to sick and preterm newborn babies born in the hospital as well as those referred from outside for specialized care.  

For FY 2023-24, we continue to focus on medical healthcare and support, education support, human life upliftment and support, animal health and welfare, sports support, protection of heritage, art and culture, and environment protection in consultation with the CSR Committee. The CSR Committee is actively involved in the selection of the project and evaluating its impact on the society as a whole. For FY 2023-24, the company will ensure that the CSR funds are utilized in an optimum manner that uplifts the weaker sections of the society. 

June 21, 2023

2023 global trends in Synthetic Rubber, Synthetic Latex, and Emulsion Polymers and its implication in India? 

The global synthetic rubber market is expected to grow at a CAGR 4.3% over the next 5 years. The synthetic rubber market is mainly driven by the tyre segment which is the largest end-use segment of synthetic rubber, followed by automotive. Some synthetic rubbers with significant strength are replacing metal parts in vehicles. This reduces the weight of the vehicle and helps in increasing fuel efficiency without compromising on the performance. The trend of reducing greenhouse gas emissions in vehicles has also increased the demand for synthetic rubbers in the automotive industry.

In terms of volume and value, the APAC region is anticipated to experience the highest rise in synthetic rubber use. Indian consumption of synthetic rubber is expected to grow at a CAGR of 6% over the next five years and hence India needs additional capacities in future. In addition to this, the demand of Synthetic Rubber also comes from manufacturing of footwear, sports goods, and other various components. With our specialty grades of rubbers, powders and polyblends, Apcotex is well positioned to cater to the growing demand in India and in the region.

Similarly, synthetic latexes like SB latex, Styrene Acrylic, Pure Acrylic, Vinyl Acetate, Nitrile Latex, etc. are also expected to grow at a CAGR of 4-5%. The major applications being paper & paper board coating, carpet backing, construction, gloves, textile, paints and adhesives, etc. In India, the demand growth is expected to be extremely strong at 8-10% due to population growth, consumer trends, and increase in per capita GDP. Apcotex has one of the broadest ranges of specialty synthetic latex and the company is adding newer grades and products every year. We have recently invested in additional capacity for all our emulsion polymers and also entered the Nitrile Latex market for gloves.

Company's financial performance in FY 2022-23 and plans for FY 2023-24? Key achievements in FY 2022-23?

Apcotex has had its most successful year in FY 2022-23 across all its performance metrics. In spite of several challenges, we clocked our highest annual revenue of almost Rs. 1,100 crore in the last financial year. This was possible on the back of several debottlenecking and quality improvement projects undertaken over the last couple of years. We have made a concerted effort to diversify our business over the last few years – We supply to a range of different industries like paper, paperboard, construction, carpet, textiles, tyre cords, auto components, rice rollers, footwear, etc. but the maximum exposure to any one industry is not more than 20%. Also, while we are primarily an India focused company, more than 20% of our sales in the past year have been in export markets. We expect to increase the percentage of our export sales over the next few years.  

Capex invested in FY2022-23 and plans for FY 2023-24?

Apcotex has invested more than Rs. 200 crore in last year on two expansion projects – one for the first Nitrile Latex plant in India at Valia, Gujarat and the other for a multi-purpose emulsions plant in Taloja, Maharashtra. This will add 85,000 MT of emulsions or around Rs. 600-650 crore to our topline over the next couple of years as the production/sales start ramping up. FY 2023-24 will be a year of consolidation and we do not expect major Capex projects to be undertaken in FY 2023-24. In addition to that, keeping in mind ESG goals, we have invested in a Zero Liquid Discharge (ZLD) plant at our Valia facility.

Future expansion plan with respect to Nitrile Rubber capacity to cater to both domestic and export markets?

We have almost tripled NBR sales over the last six years from the same plant. Being the only NBR manufacturer in India, our intention is to increase NBR capacity from 21 KT to 36 KT at our Valia, Gujarat plant. We will continue to manufacture high quality NBR grades for both domestic and international markets. All the necessary statutory approvals have been obtained and currently we are working through the detailed designing of this project. The final decision on the timing of the investment will be taken over the next few months.

On the export front, Apcotex has a strong global presence in South East Asia, Middle East, and Africa and intends to tap the Asian Markets. What's the strategy for tapping the Asian market?

The Apcotex team has done a fantastic job in growing export markets. We have learned that our business is quite unique and technical so each new country and customer comes with its own distinctive challenges. We have successfully and consistently delivered our customers’ requirements over the last few years. The international customers range from small family businesses to large multinational corporations and this has given us the confidence to spread our wings further. Today, we are successfully selling in many Asian countries as well as the rest of the world. Over the next few years, we will be further investing in sales and distribution reach and penetrate many more markets.   

Apcotex has developed a strong R&D base which has enabled them to develop, manufacture, export products, and compete effectively against global players. What are the new innovations that Apcotex is working on and how it will help in increasing market share in different product categories? 

One of Apcotex’s top priorities over the next few years will be to further strengthen our R&D capabilities. New infrastructure, diverse talent, and innovative projects are being initiated in order to ensure a strong product pipeline. For each of the industries we cater to, we continue to increase the breadth and depth of the products we offer. Of course, a big push over the next few years will be to move towards more environmentally-friendly products and sustainable processes. We will also invest in exploring viable options for green chemistry.   

Apcotex is the only manufacturer of NBR, HSR, and Nitrile Latex in India. Are you planning to set up more such exclusive manufacturing facilities in India? If yes, exclusive products that you are planning to manufacture in India?

As mentioned above, additional capacity for NBR is in the works already. We have the option of further expanding some of our latex emulsion products at marginal investments. There are other adjacencies in specialty emulsions that we are evaluating or developing as we speak. We are exploring several organic and inorganic opportunities to add to our unique products.

Key sustainability and CSR initiatives planned for FY 2023-24?

Apcotex believes that moving towards environmentally friendly processes and products is imperative. We have recently embarked on our ESG journey and over the next 10 years set short, medium, and long-term targets on several KPIs such as increasing green energy consumption at our plants, reducing hazardous waste, reducing energy consumption/MT, reducing water consumption/MT, planting 5,000 trees at our plant sites, etc. We will also work with our vendors and customers to try and reduce GHG emissions across the supply chain.  

We have always believed in giving back to society even before CSR became the norm. Over the last 3 years, the company has undertaken a few strategic projects in the areas of healthcare and education around the areas surrounding our factories and offices. The company is working with Edelgive Foundation, Mumbai and NGO Utthan to carry out strategic, long-term CSR activities in areas of water and sanitation around its Valia plant in Gujarat.

In Taloja, Maharashtra, the company has been working with Deepak Foundation for skill development of youths and women in facility management & services. With Catalysts for Social Action, we have adopted three Child Care Institutions (CCI) in Navi Mumbai, Maharashtra under the ‘Adopt a Home & Livelihood & Aftercare Support’ project. With Seva Sadan Society, Mumbai we have committed to support the English Secondary School for underprivileged children. We continue to look for like-minded partners who help us execute high impact projects in Maharashtra and Gujarat.

June 21, 2023

How would you rate the company's financial performance in FY 2022-23? What's the forecast for FY 2023-24?

We are growing at a CAGR of 14%. We will maintain this growth rate in the years to come if economic volatility stabilises to some extent.

Performance of the Protecton in different segments in FY 2022-23? What's the future roadmap? 

India is poised to be better than other world economies. It is the fastest growing economy and by 2030, it will be touching the US $3 Trillion. It will move to the third position from the current fifth position. There is a tremendous amount of investment into infrastructure by the government. There will be nine times more investment in railways. Similarly, power, refinery, and other relevant segments too have phenomenal growth prospects. There is a huge investment into Gati Shakti which is basically integrating roadways, railways, and airways. It will be giving tremendous impetus to accessibility and delivery of products to customers in the shortest period of time.

All these government initiatives along with other initiatives like bullet trains, Vande Bharat, etc. shall be opening up new opportunities for Protecton. We are suppliers to iconic projects like Vande Bharat, Pamban Bridge at Rameswaram, Chenab Bridge at Jammu, and such opportunities will be helping us to maintain our leadership position. We will continue to maintain this position because the majority of the customers prefer buying from us as we do not sell products but we sell solutions.

How has Berger Protecton Division performed in FY 2022-23? What's the plan for the future?

It gives me immense pleasure to present our accomplishment in the FY 2022-23 which has been a year of good progress, a year that began with challenges and ended with considerable success. We are growing at the fastest speed within a short period of time which helped us to cross 1,000 crore. We plan to maintain a similar kind of growth in the coming future.

Capex investment in FY 2022-23 and projects/facilities where the company has invested? Capex plans for the company in FY 2023-24 and how will it help the company in the long term with respect to investment in Lucknow, Jejuri, and Pangarh?

The Jejuri plant is already functional. In Pangarh, we have just purchased the land and will take time to commission. At the Sandila facility, production has just started and it is focused on decorative only.

Recently, the Sandila facility was inaugurated by Yogi Adityanath in Uttar Pradesh. How do you see the largest facility catering to the rising demand for the company's products?

The reason for setting up the plant is to meet the demand in North India. Berger is growing fast and we are establishing plants in strategic locations where we foresee that demand may increase.

Innovations and tie-ups are key to Berger Protection success. How have innovations and strategic tie-ups increased market share of the company?

Our whole game is based on the innovation strategy because until and unless you create something new nothing will strengthen your leadership and put you ahead of the competition. We do a lot of innovative products and processes by reaching out to the customers.

As mentioned earlier, we don’t just sell products but solutions. We do a lot of interactions with consultants, architects, and engineers. We are having close coordination with actual users and applicators. We generally listen to the customer feedback and requirements to create solutions for them. Our motto is to always add value to the activities of our customers and that is how Berger Protecton is the preferred name for customers. For example, we do a lot of supply to railways and it has in turn awarded us for saving national assets from corrosion. In our country, 5-7% of the assets are corroded due to lack of awareness on the mitigation of corrosion. If the corrosion is not handled properly, there is asset loss but there are safety issues as well.

Hence, it is of paramount important for us to create awareness areas and save the national assets by providing innovative solutions. We have given solutions for Rameshwaram bridge, Pamban bridge where the area is highly corrosive. We have provided solutions for Chenab bridge, besides we have given solutions for airports and ports. Our team has a Can Do Attitude and Never Say Die Spirit has transformed the work towards our customers as a result we have done some phenomenal work.

Both in the sea and air, we are seeing increased activities in Indian geography. How is Berger Protection planning to increase its presence in both the sectors through product innovation and strategic tie-ups?   

This year our major focus will be defence because of our Prime Minister’s dream plan, Make in India, Vocal for Local, and Atmanirbhar Bharat concept. We have to focus on the Airports, Navy, Railways, Ports, and Ship building. These will open up a lot of opportunities for us and we are working closely with the government in this direction.

Level of automation and digitalization projects carried out in FY 2022-23? How do you plan to move ahead on this front both on brownfield and greenfield projects?

In today’s era, digitalization is critical to success and the government is launching many initiatives. People are talking about UPI, Direct Benefit Transfers, etc. Ease of doing business, reaching out to customers, and providing solutions are being done effectively and in a faster way through digital platforms in a more effective manner. We have to be at par with the current market requirement.

Key sustainability initiatives of the company across facilities and where do you stand vis-a-vis your counterparts?

Sustainability is our major focus in the years to come and we are gradually shifting towards low VOC (Volatile Organic Compounds) products that will help the environment. We are implementing our waste to wealth program where whatever is used is then recycled back. The Reduce, Reuse and Recycle (3R) is our Mantra. We are basically controlling the ETP (Effluent Treatment Plant) activities in such a meticulous way that the plant remains low discharge and without any harmful environmental effects.

We are utilizing solar power so that consumption of electricity can be reduced. We are also bringing heat insulation coating to the market. That is another area that requires attention due to global warming and increase in the temperature. To reduce the inside temperature and thus decrease the cost of running an air-conditioner will help in decreasing the electricity use. In the longer run, it will decrease the use of coal and ultimately carbon footprint will be lesser.

When is Berger Paints India planning to achieve Net Carbon Zero and what are the different milestones set up by the company to achieve it?

We are working towards achieving Net Carbon Zero and shall be announcing the targets in the due course of time. All the cumulative effects of the efforts will be visible very soon.