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.

June 20, 2023

What are the global trends in Dyes Intermediate, Dyestuff, Sulphuric Acid, Chlor-Alkali, and Pharma sector in 2023?

India’s Chemicals and Petrochemicals (CPC) industry is one of the most critical and indispensable industries and a consistent GDP contributor. The ship of growth has started its journey from ashore towards a sea of unrealized potential on the backdrop of amenable government policies and initiatives and ever-rising demand and strong markets. This extremely diversified industry is transforming into a powerhouse, providing a fertile ground for stakeholders to grow and thrive.

Talking of global trends, global inflation is weighing heavily on the end market textile, paper, pharma, plastic, agrochem, water treatment, etc. Consumption of end users’ industries has been sluggish due to overall slowdown in the global market. Uncertainty about the European market has further decelerated the demand scenario of the chemical industry. When it comes to China, the policy of zero covid has slowed the economic growth for a while.

The global sulphuric acid market reached a volume of almost 284.4 million metric tons in 2020. The industry is further expected to grow at a CAGR of 1.5% between 2023 and 2028 to reach a value of almost 311 million metric tons by 2026. The major drivers of the industry such as the rising population, increase in fertilisers and chemical industry, the rising demand for the developing regions, and the increase in the demand from major consuming industries like agriculture are expected to aid the market growth.

Chlor Alkali business will continue to perform well and will contribute meaningful business in the coming period. We foresee demand for Caustic Soda to remain healthy from FMCG, textile, and paper industries. The global Chlor Alkali market size grew from US $74.34 billion in 2022 to US $80.35 billion in 2023 at a compound annual growth rate (CAGR) of 8.1%. The Russia Ukraine war disrupted the chances of global economic recovery from Covid-19 pandemic at least in the short term. The war between these countries has led to economic situations in multiple countries, a surge in commodity prices, and disruption in supply chain causing inflation across goods and services, and affecting many markets on a global level.

Key milestones achieved by Bodal Chemicals during FY 2022-23? Performance of different divisions - Basic Chemicals, Dyestuff, Dye Intermediates, Caustic Soda, and TCCA? Plans for FY 2023-24?

Milestones achieved during FY 2022-23: The company has successfully completed the technology upgradation of the Rajpura Chlor Alkali unit. The company can now meet the increased Caustic Soda demand for the north India market and also cut energy costs owing to the technology upgrade. This will establish the company for the next growth phase and strengthen its Chlor Alkali chemical market position.

Performance of different divisions - Overall business performance for 9M FY23 has been weak with total revenue of Rs. 1,178 crores, a de-growth of 20% on a YoY basis. Consumption of end user industries has been sluggish due to overall slowdown in the global market. Uncertainty of the European market has further decelerated demand for the chemical scenario of the chemical industry. Revenue contribution from dye intermediates chemical stood at Rs. 258 crores in 9M FY23.

Coming to our dyestuff business end application industries like textile, leather, paper, and other dyestuff consuming industries have not been performing well during the last few quarters. The dyestuff business for nine months FY23 stood at Rs. 442 crores.

More than 50% of our basic chemicals are captively used for dye intermediates. Overall basic chemicals contributed around Rs. 134 crores. Chlor Alkali business performed reasonably well with a revenue of Rs. 229 crores for the nine-month FY23.

Plans for FY 2023-24: Completion of greenfield Saykha project and addition of Benzene downstream products at Saykha Location. We anticipate significant quantity growth in Chlor Alkali business after the successful completion of technology upgradation at our Punjab plant.

How have three subsidiaries - BCTPL, Sen-er Boya, and BCL China performed in FY 2022-23? Plans for FY 2023-24?

Most of our subsidiaries have reported a weak performance due to a soft demand except for Sener Boya which has reported total income of Rs. 56 crores in 9M FY23 and has reported noteworthy profitability. Performance of other subsidiaries has been lower than expected due to soft demand.

Plans for FY 2023-24 - Due to a severe earthquake, Turkey is disturbed and that will not allow us to do growth at Sen-er Boya. At the same time in the initial part we have to struggle for breakeven. No significant improvement is expected at other subsidiaries due to soft demand worldwide.

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

Total revenue stood at Rs. 1, 178 crores for 9M FY23.This Included exports of 33% and domestic sales of 67%. We do not expect any significant change in revenue mix.

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

For Punjab Rajpura Plant, we spent about Rs. 150 crore as far as acquisition is concerned and another Rs. 160 crores we spent for modernization and capacity expansion as well as some normal replacement Capex. In toto, we spent a total about Rs. 310 crores in Rajpura Plant.

The company has invested a Capex of Rs. 270 crores during FY 2022-23 and plans to spend Rs. 250 crores during FY 2023-24.

What's the update on the Saykha greenfield project for manufacturing Benzene Derivatives and when are you planning to restart the Sulphuric Acid & Derivatives project?

The Saykha greenfield project is progressing well and is expected to start by December 2023. Civil structure is almost completed and detailed engineering of the process plant is also completed. Major machineries have already been ordered and start deliveries of the same by June 2023. Project is going as per revised schedule.

Currently, we have put the Sulphuric Acid & Derivatives project on hold seeing the present situation. Overall demand for Dyestuff and dyes intermediates is not good considering the current global situation. Once we have decent visibility of demand for our product portfolio and the new site is stabilized, we will restart the Sulphuric Acid project.

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

We have modern well-equipped in-house laboratories for testing and continuous improvement of existing products, particularly to inspect the quality. Our R&D team has been working on process reengineering and downstream derivative products based on Benzene chemistry. As a result, our laboratories are actively evolving in Chlorination, Nitration, and now Benzene chemistry. Our team has developed several API intermediates for which we will consider setting up manufacturing facilities and commercial production in coming times.

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 FY 2023-24? 

In upcoming projects at Saykha Gujarat, Bodal has acquired state-of-the-art technologies for Nitration reaction from Germany and Crystallization from Switzerland. This technological upgradation has allowed us to venture into an arena where automation and digitalization holds paramount importance because of the critical nature of such operations. This will ensure high quality products and services to our customers.

Key sustainability initiatives started by the company?

We have restructured our safety functions and enlarged their role as Environment, Health, Safety & Sustainability (EHSS) Function. We are reducing our environmental footprint, conserving natural resources and managing waste is the key to our circular economy approach. Some of our pollution control systems include Effluent Treatment Plant (ETP), Brine Treatment Plant (BTP), Multiple Effective Evaporator Plant (MEE), and Effluent Spray Dryer Plant (ESDP). The company has taken various environment friendly measures in its different units for promoting a better environment.

When is Bodal Chemicals planning to achieve Net Carbon Zero and milestones set up by the company to achieve it?

Technological advancements, across the globe, have opened new avenues for aspiring economies like India to ensure a more sustainable work ecosystem, be it in chemicals, textiles, power, etc. So this opportunity has been grabbed by Bodal Chemicals as well. By virtue of imbibing newer and greener technologies like Nitration and Crystallization, Bodal is on its way to becoming a minimalist contributor in carbon footprints in short version. However, as a firm believer in sustainable and reciprocating business, Bodal management is committed to becoming zero carbon emitter in times to come. And, for this, we promise ourselves to improve upon every day to fulfill our vision in order to create a win-win situation for the country and this universe at large.

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

Corporate Social Responsibility (CSR) is a mirror that reflects the company’s internal workings from outside. The fundamental goal of Bodal’s CSR programme is to create social value via activities in the area of healthcare, education, infrastructure development, sports promotion and social concerns. Major CSR activities undertaken by the company are in the areas where the company's manufacturing plants are located.

The CSR activities undertaken during FY 2022-23 are: Promoting healthcare and sanitation; Drinking water facilities; Conducting of regular health check-ups; and Promoting sports and individual talents in various fields. Further, the company as a whole will be continuing with several future initiatives under the CSR program directly as well as through different agencies.

June 19, 2023

2023 global trends in agrochemicals, pharmaceuticals, specialty chemicals, and intermediates?

Global trends in 2023 are: Increasing demand for generics specially for pharmaceuticals leading to need for cost effective APIs and intermediates production; Growing importance of sustainability is becoming an essential factor for companies across the industry to reduce environmental footprint; Emphasis on R&D and innovation leading to Indian CDMOs investing heavily in technology and capability building; Increased outsourcing activities by global giants to remain cost competitive and focus on complex steps; and supply chain diversification - China +1 strategy adopted by most global giants to diversify risk and reduce dependency on China due to the geopolitical risks, rising labor costs, and trade wars. 

Financial performance of Sajjan India Limited in FY 2022-23? Plans for FY 2023-24?  

Sajjan India Limited (SIL) has performed reasonably well in FY 2022-23 despite a tough external environment. Our revenues are likely to be in the range of Rs. 1,450 - 1,500 crore and shown a growth of 10% for FY 2022-23 with a strong EBITDA and PAT margin. We continue to remain focused on building product pipelines and deepening our relationships with the customers. This gives us confidence for consistent revenue growth and sustained profitability in coming years. We are looking for at least 20% growth in FY 2023-24. For the future, the company will grow both organically and through acquisitions. We are looking at all divisions and consolidating our relationship with the non-GMP pharmaceutical space.

Has Sajjan India streamlined its operations in FY 2022-23?

It is ten months since we acquired Sajjan India and the first task that we took was stabilising the business delivery of products on time for customers. After acquisition, we created a new management structure in 4-5 months. We got new leaders from outside and retained existing manpower by focusing on career growth. We have created an organization geared for FY24 and beyond. Significant focus was on EHS (Environment, Health & Safety) and sustainability.

How have different divisions - Agrochemicals, pharmaceuticals, specialty chemicals; Contract development and manufacturing; and intermediates performed in FY2022-23? Plans for FY 2023-24?

We have become efficient and optimized our manufacturing by focusing on better asset availability, reliability, planning and scheduling, improved batch cycles, focusing on turnarounds without compromising on safety, compliance, and environment sustainability.

How has the company performed internationally? Are you focusing on any new geography/product for the international market?

Our entire business model is based on offering Contract Development & Manufacturing (CDMO) services. Our customers are international large scale innovators who supply products in global markets. Our customer base is spread across the US, Europe, and Japan. 

Capex investment made in FY 2022-23 and projects where the company has invested? Capex plans for FY 2023-24? How will these investments help the company?

The company has been investing significantly for the past few quarters in upgrading its infrastructure, plant and machineries, capacity augmentation, safety, health & environment, and towards development of various new chemistries. Research & Technology (R&T) has always been the backbone of the company and in this direction, the company is setting up a large R&T centre in Navi Mumbai.

This new R&T centre is likely to be operational in 2023. Besides this, the company has recently inaugurated its state-of-the-art R&D lab at its Ankleshwar plant. Investment plans are afoot for setting up a pilot plant and multi-purpose plant at the company’s manufacturing facilities located at Ankleshwar and these are likely to be operational in 2024.

Overall, the company has made capital investments in the range of Rs. 100-125 crores in FY 2022-23 and for the next financial year, the Capex commitment is likely to be in the range of Rs. 200-300 crores. The company is open for growth and has invested in the future for downtimes to decrease and reliability to increase. Our investments are increasingly shifting towards better engineering controls and gearing towards manufacturing 4.0. We are equally committed to the safety of our people and partners by digitization and better analytics to focus on our aspiration to be a Zero Harm enterprise. As a Responsible Care signatory, we are also committed to make our products the right way by investment in renewable energy portfolios.

On the R&D front, what are the new innovations that the company is working on? How will these innovations help the company in the long run?

We are a process and technology driven company, so our focus is on process innovations for developing cost effective and safe manufacturing processes. We are developing new technologies like Photochemistry, Bio catalysis, Fluorination, Flow Chemistry, Green Chemistry, etc. New technologies development will widen our offerings to our partners. 

The company is planning a new R&T Centre at Navi Mumbai. When are you planning to make it operational and what all activities will be driven from this facility?

The company is in-process of setting up a state of art new R&T Centre at Navi Mumbai which will be in operation by October 2023. All technology development activities will be done at the new R&T Centre. We will have a pool of scientists from all fields, like Chemistry, Chemical Engineering, Analytical Development, Knowledge Management, Process Safety, Process Simulation, etc. for developing cost effective, scalable, and safe processes. We are confident with the new R&T Centre, technology offerings to our partners will increase by many-fold. The investments in R&T Centre are fully backed-up with investments in new pilot plant and multipurpose plant facilities at our manufacturing site to accommodate quick realization of new technologies developed at commercial scale.

Plans related to automation and digitalization across manufacturing facilities be it greenfield or brownfield? How are you planning to leverage it?

Sajjan has already pivoted towards Manufacturing 4.0 and automated operations. We believe it will not only be safer but make us nimble and agile in our operations. Therefore, we have started digitizing our utilities, production, and E2E supply chain. 40 percent of our manufacturing is on digital. We have plans coupled with investments over the next 3 years in this critical and forward-looking space.

How are you balancing growth and sustainability at the same time?

At Sajjan sustainability, ESG, and growth go hand in hand. We strongly believe as a responsible enterprise that both should happen symbiotically. Climate change is real, and we are going to play our part to ensure that our operations have minimal or no impact in the future. We have invested in renewable energies, better water reuse and recycle technologies, and better waste recycling initiatives. We have digitized our entire footprint in the past quarter to know the real time footprint and its impact on environment sustainability projects which are yielding. By the end 2023, 1/4th of our operations shall be renewable, 1/3rd of operations will be water recycled, and half of our waste would be recycled. We have strong 2030 aspirations which we shall be firming through our OESG Committee that is a Board level Committee to monitor ESG progress.

When are you planning to achieve Net Carbon Zero? Landmarks that you have set up for achieving it? 

We have tied up with various partners and are currently undergoing Science Based Targets Initiative (SBTi) exercise to ascertain the timelines for achieving Net Carbon Zero and beyond. Request you to hold tight on that, as by mid-2023 we shall be coming out with our detailed plan based on talk with our Top 5 partners and in alignment with partners. We are already ahead with our investments on renewable energy, switching to cleaner energy, reducing water usage, reuse/recycling water, and being a zero waste to landfill enterprise by investing, reimagining, and adjusting our processes and systems.

CSR initiatives being undertaken by the company with respect to education, health & sanitation, environment sustainability, and rural development in FY 2022-23? Plans for FY 2023-24?

We at Sajjan have our CSR program in line with Sustainable Development Goals (SDGs). We are committed to this because a better, healthier, and cleaner community has a direct impact in achieving growth ambitions where we operate. In health, we have arranged health check camps in which 650 people participated. We sponsor community events such as Ankleshwar Marathon to encourage better health and lifestyle of our communities. Education and upskilling is vital to prepare a resilient future workforce that helps in the development of the nation. In October 2022, we inaugurated AEPS Institute of Science at Ankleshwar College which would annually cater to 300 students on better education and upskilling.

On the environment sustainability, we are committed to planting 2,000 trees in a green redevelopment of a land parcel by the state government in Ankleshwar, equally we have committed that our new expansion at Ankleshwar shall be carbon neutral operations.

How do you see the future of Sajjan India?

We are excited with Sajjan 2.0 which will help in the transformation of the organisation and also leveraging growth opportunities

June 16, 2023

Vishnu Chemicals spent approx. Rs. 100 crore towards growth Capex on a consolidated basis to expand its Chromium chemicals capacity by 10,000 tonnes per annum and a brownfield expansion to introduce a niche speciality chemical in Barium Chemicals

2023 global trends in Chromium and Barium chemicals portfolio?

The extent to which Chromium and Barium chemicals are used in the production of everyday items is astonishing. Our products are a critical ingredient across the pharmaceuticals, consumers, and industrial sector. From acting as strong oxidants in pharmaceuticals to creating a shining and reflective surface in tiles and ceramics or the silver finish on faucets, towel holders, hardware – door knobs or handles, Chromium chemicals add to the aesthetic appeal of any vehicle that gives a good feel be it the shining logo, stylish front grills, premium leather seats or sturdy engines and pistons or be it colours, that don’t fade away.

Chromium chemicals find their way in the production of super alloys by the world's most complex manufacturing powerhouses, which allows jet engines to operate in high-temperature, high-stress, and chemically oxidising environments. In addition, it is further used in aircraft to protect seal components against galling, corrosion, and wear, which is catalysing the growth of the industry.

The demand for Chromium and Barium chemicals is robust as it is a critical input in 12+ applications. Markets across Asia Pacific, Europe, and North America are aided by the growth in the construction and infrastructure industry, which is boosting the demand for Barium chemicals.

How has Vishnu Chemicals performed during FY 2022-23? Plans for Barium and Chromium portfolio in FY 2023-24?

FY 2021-22 was a successful and eventful year at Vishnu Chemicals as we crossed an important milestone of Rs. 1,000 crore in sales. It is even more satisfying that we delivered good growth in both Indian and International markets. Over the years, Vishnu Chemicals has nurtured the chemistry and mastered complex chemical processes by overcoming the gestation period of stabilisation. Deep process knowledge enables the company to track how a reaction unfolds and speed up execution to achieve greater operational excellence.

We feel good about our ability to deliver growth based on our historical performance. Over the years, our product portfolio has expanded and so has our customer base. We are focused on the fundamentals of improving efficiencies and optimum utilization of capacities which should enable us to deliver robust performance. Going forward it will essentially make our initiatives RoI (Return on Investment) accretive and deliver the benefits of finest quality of specialty chemicals to our global customers.  

Our unwavering focus on manufacturing has led the company to be one of the most efficient producers in our chemistry. In FY 2022-23, we have entered the prestigious club of companies with more than Rs. 100 crores of profit after tax. With one quarter to go, our 9M FY 2022-23 consolidated PAT is Rs. 101 crores, already 24% higher than previous fiscal FY 2021-22 PAT.

Since FY 2016-17, we have delivered a PAT CAGR of over 50% by meaningful capacity addition and improving our manufacturing processes that combine environmental and economic benefits through comprehensive use of resources and ability to handle complex reaction media. In FY 2023-24, we have bold targets set for production and in both chemistries, we aim to produce the highest volume ever in FY 2023-24.

Revenue mix is 50:50 with respect to outside India and within India. Do you see any change in revenue mix in FY 2024-25?

We are focused on balancing our sales mix geographically to continue mitigating the market risk. We also like to maintain a 50:50 mix of sales across India and international markets as it gives us access to world’s leading markets like Japan, Australia, Spain, New Zealand, USA, and more.

Vishnu Chemicals manufactures specialty chemicals and is a dependable supplier for customers across industries like pharmaceutical, sports surface paints, automobiles, ceramics, tiles, glass, refractory, and wood preservatives. The company's products and processes conform to global standards, which is a testimony of product quality and reliability. We look forward to maintaining the same revenue mix in FY 2024-25.

The company is focused on backward and forward integration initiatives leading to self-sufficiency and improved operating leverage. How will this initiative help in Barium, Chromium, and any new portfolio?

Our key tenet has been to manufacture high performance specialty chemicals that stand the test of time and quality, which instils huge confidence in our global customer base. With manufacturing being the core focus, we constantly study data from customer inquiries to create our production plan. Our forward integration helps us to reinvent and innovate to cater to a new range of applications and consequently, enhance our business prospects. Similarly, our backward integration facility gives us the ability to effectively use co-products and generate raw materials for indigenous consumption. A major step towards sustainability was the commissioning of backward integration at our flagship plant in Visakhapatnam.

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

From a total capacity of 1,10,000 tonnes per annum in FY 2020-21, we will operate at 1,70,000 tonnes per annum in FY2023-24, making us the largest producers in India in our chemistry. In FY 2022-23, we spent approximately Rs. 100 crore towards growth Capex on a consolidated basis to expand our Chromium chemicals capacity by 10,000 tonnes per annum and a brownfield expansion to introduce a niche speciality chemical in Barium Chemicals. In FY 2023-24, we will be open to explore organic and inorganic expansion to further expand our margins and ROCE.

The company is focusing on brownfield expansion to aid Barium portfolio diversification and it is expected to be commissioned in H1 FY24. How will this expansion help Vishnu Chemicals?

The ongoing brownfield expansion will aid portfolio diversification in our Barium chemistry. We will be the only producers of this chemical in India giving us a first mover advantage to tap existing customers who are currently relying on imports for their material needs. This will help us gain market share in India, Europe, and North America, which is generally a growing market for these products. 

Upon commissioning, we will be the largest producers of Barium chemicals in India giving us an opportunity to meet Indian consumption needs while tapping our existing network of international clientele for export sales. From 40,000 tonnes of capacity in Barium chemicals in January 2022, we will operate on an installed capacity of 90,000 tonnes.

On the R&D front, the company is focusing on launching newer grades and compounds for newer applications. Explain?

The company's improvisation strategy is underpinned by a strong commitment to research, development, and innovation. The company has built a world class infrastructure and emerged as ‘a company of choice’ in the industry owing to constant learning and continuous improvement.

Chromium chemicals are key to manufacturing superalloys required for critical applications in the aerospace, defence, land-based gas turbines to name a few. We are the producers of a range of Chromium chemicals and have pivoted into a variety of grades to meet the requirement of our customers globally. Led by addition of Chromium derivative products into its product portfolio since 2019, Vishu Chemicals average capacity utilization has increased from around 60% in FY16-18 to around 80% since FY19.

There is an ongoing expansion plan to introduce ‘Precipitated Barium Sulphate’ with a capacity of 30,000 TPA which is expected to be commissioned by H1 FY24. Globally renowned researchers have created the world’s whitest paint using Barium chemical. This paint has entered the Guinness Book of World Records for its ability to reflect 98.1% of sunlight. Hence, it cools outdoor surfaces by more than 4.5°C thus cutting down the consumption of electricity and use of energy. Climate change is a real thing today and this innovation is path-breaking as it delivers results to homes and offices in the most cost effective manner.

We are really excited about this development as we ourselves are currently expanding to manufacture the best quality Precipitated Barium Sulphate under our Barium Chemicals portfolio. Our product is an inorganic compound and is a high-purity, synthetic additive that is produced in a carefully controlled manufacturing process. And, it contains almost no impurities, the whiteness is higher than natural Barium Sulphate so it can be used as the filler of pure white powder coating, and the finish glossiness can reach 95 degrees.

Initiatives taken by Vishnu Chemicals for enhancing process safety across all facilities to make operation intrinsically safe?

People are at the heart of our business. Their health, safety and well-being have been and continue to be a top priority for us. With safety at the workplace being paramount, health and safety standards are continuously assessed, identified, and uplifted. With an intensive focus on safety, we have achieved a decline in Total Recordable Injury Rate (TRIR). We firmly believe that we can progress only as fast as the successful implementation and acceptance of our safety programmes and initiatives. Our aim is to build a more mature and sustainable safety culture that will allow us to increase our productivity and operational discipline and facilitate highly competitive organic growth.

Sustainability roadmap of Vishnu Chemicals and key sustainability initiatives?

Sustainability is at the centre of all business processes at our company. The company considers it is essential to protect the Earth and limit natural resources as well as the health and wellbeing of every person especially employees/workers of the company. The company strives to achieve safety, health and environmental excellence in all aspects of its business activities. Acting responsibly with a focus on safety, health, and environment to be part of the company’s DNA.

In line with the ‘Go Green’ philosophy, the company is continuously adopting new techniques to eliminate and minimise environmental impact. Various projects have been implemented by the company to use alternate sources of energy wherever possible.

The company does not just talk about ‘Sustainability’, it follows in true letter and spirit; sustainability is about how we operate. We strive to promote a circular economy and deliver societal value. Vishnu Chemicals approach is to innovate, collaborate, and educate communities.

The company takes required measures to mitigate impact to various environmental aspects like air quality, water, and noise. The company focuses on conservation of natural resources: minerals, water, and energy. Our philosophy for sustainability stems from individual action and collective responsibility. The company’s plants are equipped with modern machinery operated with sustainable practices. Our teams regularly conduct awareness programs and impart training to all employees on sustainability practices.

In 2022, the flagship plant was integrated to capture and recover flue gases and use it as a vital input for its production in a sustainable eco-friendly manner. We are only one of the few companies globally to have this infrastructure.

Major CSR initiatives being undertaken by Vishnu Chemicals in FY2022-23 and plans for FY 2023-24?

We believe society is an inseparable stakeholder in our journey. Our CSR vision is aimed at achieving progress and value creation for all. In furtherance of our efforts to have long term impact on large communities in general, the company spent majority of its CSR funds on an initiative to build old age homes by Krishna Foundation to transform lives of elderly through care and support. The facility provides nutritious food, hygienic and comfortable environment, recreation activities among others. In FY 2023-24, we will continue to spend the CSR towards community service and providing economic independence and shelter to the needy.

June 15, 2023

2023 global trends in Performance Surfactants and Specialty care products?

Globally, we are seeing a shift in consumers’ preference towards products that not only deliver functionality but also promote healthy lifestyle and focus on sustainability. Most FMCG companies are focusing on premiumization of their portfolio because of this change in consumer behaviour. For e.g. people are incorporating skincare regimes as part of their daily personal care routines. Similarly, consumers are gradually shifting from laundry bars and powders to premium powders and laundry liquids. This has led to a positive momentum in demand for premium products in many markets across the globe. This shift is expected to change the product mix of performance surfactants while boosting the need for specialty care products in 2023.

How would you rate the company’s financial performance in FY 2022-23? Forecast for FY 2023-24?

FY 22-23 has been a year of challenges on the macro-economic and geopolitical front. We had significant demand cutbacks and deteriorating economies. Despite the multifold challenges, we have consistently grown and achieved our FY 22 profit in the first 9 months of FY 23. For FY 23-24, we aspire for a volume growth of 6-8%, EBITDA growth higher than volume growth and PAT growth higher than EBITDA growth.

Performance of the company in different segments - Performance Surfactants and Specialty care in FY 22-23. What’s the future roadmap?

While we did face demand cutbacks largely driven by the volatile macro-economic factors for major part of the financial year, with raw material prices stabilizing and most geographies having undertaken the necessary inventory corrections, we expect the degrowth in Performance Surfactants volumes of previous quarters to abate in 4Q FY 23 and begin the new financial year with the same momentum.

Our Specialty care products are largely driven by the export market (Europe, USA, and China). The Russia - Ukraine war and the resulting energy crisis had resulted in an overall slowdown in the European market. In China, the COVID induced lockdowns had an adverse impact on demand while the USA market was still sitting on higher priced inventories. All these factors impacted Specialty care volumes this year. Looking ahead, while we expect inventory corrections in the USA market to be complete by 4Q FY 23, the recovery of Europe and China will lead the way for volume growth of Specialty care products in FY 24.

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

Our annual Capex is around Rs. 150-200 crores and we have spent close to Rs. 120 crores in the first 9 months of this year. We do see a growth Capex of Rs. 150-200 crores per year continuing for the next 2-3 years. Typically, Capex is a combination of capacity enhancement as well as maintenance. During the year, we completed our additional capacity enhancement at Jhagadia.

Environmental clearances for expansion and additional land available at Jhagadia and Suez plants. What’s your expansion plan?

We have the necessary statutory permissions for capacity enhancement at our Jhagadia and Suez plants. Our capacity expansion plans are always ahead of demand growth.

Update on expansion projects for Specialty care products at Jhagadia and Tarapur plants? What is the total installed capacity across and how much additional capacity was added during FY 2022-23?

Our pilot plant at Tarapur for new molecules commenced operations in FY 2022-23. This will help us in seeding the market for new applications in Personal care and Home care. At Jhagadia, we have completed our expansion project for various Specialty care ingredients in FY 2022-23.

Major product launches in Performance Surfactants & Specialty care products categories during FY 2022-23? Expected value addition and impact on overall revenue? Any major additions into your portfolio on cards?

In FY 2022-23, we marketed Taurates & Sarcosinates along with new grades of Isethionates. Our application team works very closely on joint development projects with our customers which allows them to offer products with unique benefits to the consumers. Galaxy also helps in customization of these compositions to give them exclusivity and help them maintain confidentiality of their products.

The constant endeavor of Galaxy has been to offer safer products to consumers. Accordingly, last year our team successfully improved the existing SLES process to consistently obtain the product with less than 5 ppm dioxane with our GalEcoSafe range.

Sustainability is a key focus and acceptance of sustainable formats in Personal care is rising among consumers. Shampoo Bar is gaining good traction. Combining our capabilities and competencies in Syndet & Hair care science, and with our comprehensive range of Mild Surfactants we have launched a Conditioning Shampoo Bar Syndet base for ready preparation of high conditioning shampoo bar.

Driving sustainability and convenience, we extended the range of Liquid Capsules/pods concentrate for floor cleaner. This ready mix allows customers to make concentrated liquid floor cleaner capsules for DIY or Unit Dose use and save on utilities, fuel, water, and plastic.

Company's performance in global markets, especially Europe and China in FY 2022-23? How do you look at the future market potential in the emerging and mature markets?

Europe, one of the key mature markets for us, was reeling under the impact of the Russia - Ukraine war and the resultant energy crisis throughout 2022. As a result, there was an overall slowdown in Europe. While the global markets steadily recovered from the pandemic, China was still reeling under the impact of COVID-19. Recovery was much slower than expected as many cities continued to be under strict lockdown for long intervals thereby impacting business negatively. Several emerging market countries were under financial stress in 2022. This was primarily on account of surging energy prices as well as high food inflation.

For 2023, progress on climate policies, financial policies and multilateral issues will be critical to ensure we overcome the geo-economic pressures. In the long term, we do see a growing demand for Personal care and Home care products.

In recent times, the company has won the Best ESG Initiative to Improve Access to Clean Water Award and Golden Peacock Eco-Innovation Award 2021. How these achievements strengthen the company's commitment towards future ESG goals?

The Best ESG Initiative award encourages us to scale greater heights in corporate responsibility. The Golden Peacock Eco-Innovation award gives an impetus towards our Mission 2030; to serve customers with value added products, manufactured responsibly.

In 2022, the company has achieved water positive certification and become 1.4X water positive. How did it become possible and what does it mean to you and your customers?

More than a billion people across the globe lack access to water and nearly 2.7 billion face water scarcity at least one month in a year. At Galaxy, we are cognizant of our water footprint. Reducing water consumption in operations and improving water quality have therefore been important business objectives for us. Guided by our Sustainability cell, the working committees across locations measure, monitor & review water related topics, both within the company and community areas. We define water stewardship as the usage of water that is socially equitable, environmentally sustainable, and economically beneficial, achieved through a stakeholder inclusive process.

All our sites in India are zero liquid discharge facilities. We are carrying out a substantial number of activities through CSR projects to conserve water. Rainwater harvesting within the company boundary and in community areas, check dam creation and desilting of water bodies are undertaken to improve water availability. These conscious and consistent efforts have helped us in achieving water positivity of 1.4X. As customers are also enforcing ESG measures, they need a mind partner to provide less water intensive solutions.

How is the company strengthening its in-house R&D capabilities to expand customized solutions to its customers? How many new products are expected from the innovation funnel in FY 2023-24?

The company aims to grow faster than the market by retaining existing accounts and by introducing new and differentiated products to capture new opportunities and newer areas of applications. The speed of launch of new products is critical for the growth in market share. Keeping that in mind, the company has invested in expansion of R&D capacity and building a dedicated plant for R&D product incubation to accelerate commercialization. These expansions are already bearing fruit. The expanded capacity will also support ramping up the strength of scientists to increase the rate of product introductions. We have also started providing unique customized offerings to our customers in the form of product/concept/formulation so that we are able to grow and be a part of their growth journey. In

FY 2023-24, we will continue to introduce products in the Personal care and Home care segments in line with customer trends.

Automation and digitalization projects carried out in FY 2022-23? What's the plan for brownfield and greenfield projects?

Our company has always worked to be contemporary in the application of technology for its business processes and its interface inter and intra organization. Towards this end, review of business processes, applications available, and digitization of processes with adequate controls is an ongoing work in progress. We have been working on the best known SAP ERP for over a decade, with substantive utilization of its features and are striving to move subsidiaries on the same to enable seamless availability of real time data on consolidated operations. Cyber security is at the heart of effort with a 24x7 surveillance mechanism in place to thwart any infringements in collaboration with renowned professional names in the domain to remain abreast with the technological advancements accessible.

When is Galaxy Surfactants planning to achieve Net Carbon Zero and milestones set up by the company to achieve it?

At Galaxy, we have integrated sustainability into our day to day working. We have adopted Science Based Target Initiatives (SBTi). Science based targets provide a clearly defined pathway to future proof growth by specifying how much and how quickly companies need to reduce their greenhouse gas emissions. Currently, we are in the process of target validation. We are sourcing renewable sources of energy – Almost 18% of power sources are renewable in FY 22-23; We are committed to using RSPO certified material; and number of energy efficiency projects are driven to ensure we are using resources effectively and efficiently. There is a long way to go in terms of creating an opportunity to make carbon capture and use feasible technologies. Removal of hurdles for shifting to a 100% renewable source of power will be key to achieving Net Carbon Zero.

CSR projects executed in FY 2022-23 and plans with respect to FY 2023-24?

At Galaxy, we believe that it is the society that makes us and therefore it becomes our responsibility to give back to the society. Our CSR activities focus on five critical areas that shape the society we live in today: Health & Hygiene (Aarogya Vardheeni); Education (Gyaan Sanjeevani); Community Development (Samajeek Utthan); Environment Protection (Vatavaran Suraksha); and Women Empowerment (Stree Unnati). Primary health center, building toilets, vocational skill development, watershed developments, tree plantation and community hall for women self- help groups were some of the key projects undertaken this year. Cumulatively, we have reached around 150,000 beneficiaries through our initiatives this year. For the coming year, we will continue to focus on these critical areas and reach out to a larger number of beneficiaries.

June 14, 2023

Gujarat Fluorochemicals Limited financial performance in FY 2022-23 and plans for FY 2023-24? Key achievements in FY 2022-23?

In the 9 months ended Dec 2022, we have reported a revenue of Rs. 4,213 crore as against Rs. 3,954 crore for the full year FY 2022, while our EBITDA and PAT for the 9 months ended Dec 2022 stood at Rs. 1,518 crore and Rs. 991 crore respectively as against Rs. 1,198 crore and Rs. 775 crore for the full year FY 2022. We are incurring a Capex of Rs. 1,250 crore for FY23 and FY24 each. Most of the Capex this year is towards expanding our new fluoropolymers portfolio and for the next year it will be more towards the EV segment, both battery chemicals, and fluoropolymers used in the EV space.

GFL is the only manufacturer of PTFE/Flouropolymer in India. Are you planning to set up more such exclusive manufacturing facilities in India for other products?

Yes, we have plans of rapid expansion in terms of adding capacities to our existing Fluoropolymer portfolio for applications in electric vehicle batteries, solar films, and hydrogen fuel cells. Our vertically integrated operations help us to maximize value addition.

GFL's Jolva facility is focusing on Fluoropolymers, Specialty, and New Age Chemicals and presently is under phased commissioning. Please elaborate? 

Our Jolva facility is a part of continuous expansion of the existing products and new age chemicals. Customers understand and appreciate our customized products, local presence, just-in-time deliveries, and continuous engagement with customers, which is reflected in the increase in demand for our products. We plan to start commercial operations of our New Age Chemicals by the end of 2023.

GFL is in the process of setting up an integrated battery chemicals complex. What's the update in terms of Capex, timeline, and battery chemicals products to be manufactured in the complex?

At GFL, we give utmost importance to sustainability and the environment. In an effort to contribute to global carbon neutrality goals, we have invested in the integrated battery chemicals complex. With our own fluorspar mines and electronic grade AHF manufacturing facility, we plan to manufacture electrolyte salts such as LiPF6 and other value-added products.

The company is setting up India’s first PVDF solar film project which will be commissioned in the next financial year. What's the update in terms of Capex and timeline?

We leveraged our vertically integrated facility to enter the segment of PVDF films. At a time when India and the world have set aggressive solar energy targets, it is highly important to scale local production of relevant raw materials such as PVDF films. This plant is planned to be commissioned by the second quarter of the current financial year.

On the export front, the company is a major supplier of Fluoropolymers to Europe and USA. How are you planning to increase your export market share?

We will continue to work closely with our customers on upcoming projects and develop greener products to provide value addition. We will play our role as a preferred supplier of fluoropolymers that are of utmost importance for major applications in Europe and USA. We will also continue to take all necessary steps to make sure products are consistently supplied to customers at the right time.

Global trends in Bulk Chemicals and Fluorochemicals in 2023?

Due to Montreal protocol regulations the uses of HCFC have been restricted and are being phased out gradually. The demand for HCFC thus is shrinking globally. HCFCs are being replaced by HFCs. The markets for HFCs are growing globally at about 7-8%. However, GFL is targeting 20% annual growth for HFC. 

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

As far as sustainability is concerned, the biggest challenge today in our industry to build a strong product life cycle is to balance economic and environmental sustainability.

This includes adherence to strict global regulatory compliance and meeting the challenging demands of customers for environment-friendly products. In addition, we also seek efficient and cost-effective methods of producing our products, reducing waste and emissions and ensuring safe handling/disposal of chemicals throughout the product life cycle.

We consistently monitor dynamic regulatory changes and have consequently moved away from chemicals of concern in our fluoropolymer product line.

At GFL, giving back to the community is part of our corporate philosophy. As corporate citizens, we are committed to acting in an economically, socially and ecologically responsible manner and coordinating the interests of various stakeholder groups. We strive to create a more sustainable company and have a positive impact on our communities, society and the planet.

Are you planning to completely switch to green/renewable power? If yes, by what time frame?

We at GFL have already invested a substantial part in renewable power. For full switchover we shall abide by India’s time frame.

The company has invested a Capex of Rs. 1,250 crores in FY 2022-23 and facilities where it has invested? Facilities where it is planning to invest Rs. 1,250 crores in FY 2023-24?

At this moment, we will mainly be investing in fluoropolymers, battery chemicals and intermediates. Going forward we shall be looking towards newer segments as and when we see a demand and opportunity arising at a domestic and international level.

DST approved Research and Application development centers are focusing both on new businesses as well as existing businesses. How are you planning to leverage your innovation centers?

If you look at the current investments that we are doing, it is basically by developing new grades of our products for new age sectors such as uses and applications in 5G, EVs, semiconductor, Green hydrogen, etc.

GFL has also taken up projects to indigenously develop and produce PEM membranes. Any update on this front?

Yes, as already discussed previously, lab products have been developed, a prototype plant is under construction. We shall soon be ready for commercially viable grades.

GFL is well equipped to cater to the fluoropolymers required for the hydrogen electrolysers, fuel cells, and charging stations. What kind of fluoropolymers are you planning to manufacture to cater to these segments and by when?

A variety of Fluoropolymers, like PFA, PVDF, and PTFE are already being used in such areas for the hydrogen electrolysers, fuel cells, and EV charging stations. We have several products for these segments and shall complete the remaining ones also in the next couple of years.

June 12, 2023

Huntsman introduced a new range of materials that offer exceptional strength, durability, flexibility and are designed to meet the growing demand for lightweight, high-performance materials in various industries. The company also launched new formulations of epoxy resins and curing agents that provide superior adhesion, corrosion protection, and mechanical strength 

2023 trends in Polyurethanes, Advanced Materials, and Performance Products? 

We are very optimistic about the future of Polyurethanes in India, given the country's position as one of the fastest-growing markets. Over the past decade, we have seen exponential growth in the Polyurethane industry, driven by diverse opportunities in consumer sectors such as footwear, automobiles, appliances, and construction. This growth has been further supported by a sizable middle-class and affluent youth population. 

We believe that sustainability will be a key focus for the industry going forward, and we are committed to developing new materials that are both high-performing and environmentally responsible. In addition, we see a growing demand for advanced materials that offer unique properties and characteristics, such as improved durability and enhanced comfort. At Huntsman, we are investing in research and development and collaborating with our partners to develop solutions that meet the evolving needs of our customers and the world around us. 

The composites industry has also received a huge boost with the transition from conventional rebar to composite options. This shift represents a significant step towards a future where more substantial structures can be built using reinforced materials. If the construction market can rely on composite materials, it will be a major achievement for the industry. Overall, we are excited about the possibilities for Polyurethanes and advanced materials in India and around the world, and we are committed to leading the way in innovation and sustainability. 

Key milestones achieved by Huntsman India in FY 2022-23 with respect to Polyurethanes, Advanced Materials, and Performance Products?

We have reached several significant milestones that reflect our unwavering commitment to excellence. We were honoured to be recognized by the industry for our outstanding performance in safety. Our retention of ICC approval to use Responsible Care underlines our commitment to sustainability and environmental stewardship. We also introduced a new range of materials that offer exceptional strength, durability, and flexibility. These materials are designed to meet the growing demand for lightweight, high-performance materials in various industries. Additionally, we launched new formulations of epoxy resins and curing agents that provide superior adhesion, corrosion protection, and mechanical strength. 

Our commitment to sustainable innovation in the chemical industry is evident in our development of TEROL. This bio-based alternative to traditional materials is derived from recycled PET bottles and has been advanced for use in footwear and insulation applications. Incorporating TEROL into our products not only makes a statement on sustainability but also provides customers with high-performing, eco-friendly solutions that meet their needs while reducing waste and environmental impact. 

Furthermore, we're proud to have made significant strides in addressing the changing needs of the automotive industry, particularly with the rapid growth of Electric Vehicles (EVs) in India. Our Polyurethanes business has developed a renewed portfolio of Polyurethane solutions to meet the demands of the evolving automotive market, including materials for thermal management, lightweighting, and noise reduction in EV battery systems. At Huntsman, we're committed to creating a better future through our sustainable products and practices.  

Are you planning to manufacture battery materials in India? If yes, battery material products that Huntsman India is planning to manufacture and market? 

We are committed to contributing to the growth of the Indian Electric Vehicle (EV) market and the country's transition to a cleaner and greener future. As a leading Specialty Chemicals manufacturer, we provide comprehensive casting and impregnating resin systems for various EV components, including batteries. We are currently exploring various opportunities, which would further support the government's vision of developing a robust domestic EV ecosystem. 

Our battery material products are specifically designed to meet the unique requirements of the Indian market, including increased safety, lightweighting, and improved performance features. We offer technical support and expertise to assist EV manufacturers in selecting the right materials for their specific applications, ensuring that they meet the highest standards of quality and reliability. Through our innovative products and services, we are committed to accelerating the transition towards a more sustainable transportation system. Our goal is to provide cutting-edge solutions that support the growth of the Indian EV industry and contribute to a cleaner, greener future for all.  

How is Huntsman India striking a balance between environment friendly policies and sustainable growth? 

Huntsman India is committed to promoting sustainable growth while minimizing our environmental footprint. We strive to balance our growth objectives with environmental responsibility by implementing policies and practices that reduce waste, conserve resources, and promote sustainable development. Our Responsible Care commitment is the cornerstone of our approach, and we have established several initiatives to support this effort, such as improving our energy efficiency, reducing our greenhouse gas emissions, and launching a water conservation project aimed at improving water efficiency and reducing net water usage. We also leverage our expertise in chemistry to develop innovative products and processes that promote sustainability. For example, our TEROL product line offers a credible recycled alternative to traditional materials that reduce waste. We are constantly exploring new ways to innovate and provide sustainable solutions that meet the needs of our customers. 

In summary, Huntsman India is committed to promoting sustainable growth by implementing environmental policies and practices, leveraging chemistry expertise to develop sustainable products and processes, and engaging with all stakeholders to foster collaboration and promote responsible practices. Our goal is to contribute to a cleaner and greener future for all. 

Sustainability plans for Huntsman India keeping in view carbon neutrality, full circularity, and sustainable chemistry with respect to Horizon 2025 targets? 

Huntsman India is committed to achieving the ambitious goals outlined in Huntsman Corporation's Horizon 2025 sustainability strategy. This strategy sets targets for reducing the company's environmental footprint, promoting sustainable chemistry, and advancing the circular economy. 

With respect to carbon neutrality, Huntsman India has already made progress towards reducing greenhouse gas emissions and improving energy efficiency through initiatives such as the installation of a solar facility at our manufacturing plant in Chakan, Pune. We will continue to pursue a variety of measures to reduce our carbon footprint, including the use of renewable energy sources, energy-efficient technologies, and process improvements. 

Huntsman India is also committed to advancing the circular economy by developing innovative products and processes that promote the use of recycled materials and reduce waste. We are actively exploring ways to incorporate circularity principles into our manufacturing processes and supply chain management practices, with a goal of achieving full circularity. 

Finally, we are committed to promoting sustainable chemistry by developing products that meet the highest standards of safety, performance, and environmental responsibility. Our Bio-based product line is just one example of our efforts to develop sustainable alternatives to traditional materials, and we will continue to invest in research and development to identify new opportunities for sustainable chemistry. 

CSR initiatives completed by Huntsman in FY 2022-23 and plans for FY 2023-24?

At Huntsman, we place equal importance on the safety of our employees and the health and wellbeing of the communities in which we work. Several initiatives have been carried out by our dedicated corporate social responsibility team across our locations which enables us to access the ultimate key: the licence to operate. These include a setting up of a high school near our plant in Chakan Pune, our primary health care facility supported the administration of over one lakh COVID-19 vaccines in and around Chakan, setting up a drinking water supply unit benefitting 5,000 villagers around Padra and also offering scholarships worth Rs. one lakh to deserving students in the Padra region of Gujarat.  

We are running medical mobile clinics which have covered 55,000 people from 18 villages in Chakan and over 25,000 people in Navi Mumbai. Our integrated rural development project Badlav has benefitted around 30,000 villagers across 10 villages both in Maharashtra and Gujarat. Under Anandi, our holistic education development programme, we have covered over 7,000 students. Lastly, our initiative to make rural Chakan an open defecation free region is going well. We have already covered two villages by building sanitation facilities in each house of the village thus benefiting over 300 people in the region.  

Huntsman India plans for FY 2023-24 with respect to Polyurethanes, Advanced Materials, and Performance Products?

We have an ambitious plan for 2023 that focuses on innovation and growth across all business segments, including Polyurethanes, Advanced Materials, and Performance Products. 

Polyurethanes: We have amended our manufacturing capability to produce a broader range of Polyurethane materials such as Footwear Polyester systems. We have invested in Chakan to locally manufacture PU and Polyurea Coatings. We are on the verge of commissioning a renewed Technology Development and Customer Experience Center in Pune. 

Advanced Materials: We continue to develop innovative products that meet the needs of its customers across a wide range of industries, including aerospace, electronics, and automotive. The company is exploring new applications for its cutting-edge Araldite adhesives and composites, which are known for their strength, durability, and reliability. 

Performance Products: We are expanding our portfolio of performance products focusing on sustainability, developing new products and processes that reduce waste, conserve resources, and promote circularity. 

Overall, Huntsman India's plan for 2023 reflects its commitment to innovation, growth, and sustainability across all business segments. The company is poised to build on its successes and continue to drive progress in the Indian market and beyond.

June 09, 2023

hubergroup is investing in research and development to develop new products and technologies that are more energy-efficient and sustainable. The company is also reducing energy consumption through energy-efficient technologies and process at our sites in India.  

Key achievements in FY 2022-23 by hubergroup Asia/India? 

FY2022-23 was a challenging year. It started with challenges of higher demand, supply chain disruptions, raw material cost upsurge while it ended with a sluggish demand, pipeline correction, management of operational and business cost. Nevertheless, hubergroup developed innovative products with unique properties with efficient and environmentally friendly manufacturing processes to meet customer needs. We met sustainability goals by reducing environmental impact, improved safety, expanded into new markets, and collaborated with many new business partners. 

We started our Global IT Centre of Excellence in India where services like network, security, data centre of hubergroup worldwide are now delivered from one single location. Our innovative products MGA CONTACT and Oxygen Barrier Coating won awards for sustainability. The launch of our eco-friendly new water-based ink portfolio HYDRO-i, developed jointly by the R&D teams of India and Germany, has been accepted and appreciated by the packaging industry.   

hubergroup is one of the leading international specialists for solutions and technologies relating to printing inks, printing aid, and raw materials. What's your Asia/India strategy for FY 2023-24?  

hubergroup is a German-based company with a strong presence in India serving as a manufacturing hub for our global operations. We follow some of the best European business practices and yet produce products in cost-effective ways by leveraging our manufacturing footprints in India. Our Asia/India strategy in the current scenario is to focus on sustainability, energy efficiency, and collaboration with stakeholders to drive innovation and growth in a rapidly changing market. We are investing in research and development to develop new products and technologies that are more energy-efficient and sustainable.  

We are also expanding into new markets to explore with a broader focus. We have separated our Chemicals business from our Print Solutions business in 2020 to be more focused and provide solutions tailored to our customers. We also continue to remain focused on our employees’ well being and bringing in more diversity to the existing workforce. 

How has the chemicals division performed in Asia/India in FY 2022-23? Bouquet of products planned to be launched in this fiscal?  

Our global Chemicals Division performed well in FY 2022-23. However, we have higher expectations from Asia/India due to the region's economic growth, and rapid industrialization, and urbanization. The industry also faces challenges such as rising raw material costs, environmental regulations, and increasing competition from other regions. The COVID-19 pandemic has also impacted the industry, causing disruptions in the supply chain, and reducing demand from certain sectors. Overall, the chemicals business in Asia/India is expected to grow significantly higher than GDP growth. Going forward our focus is to enhance business for radiation curing systems which includes UV oligomers (polyester acrylate, poly urethane acrylates, and epoxy acrylates) and monomers. 

Recently, we participated in the European Coating Show (ECS 2023) to showcase our product portfolio in the Chemicals Division and received overwhelming responses. 

hubergroup develops innovative solutions and technologies for the printing and packaging, the paint and coating, and chemical industries. New technologies/products that you are developing in R&D labs and its implication for the hubergroup?  

We are working on developing new products with an increased use of bio-based raw materials to fulfill our commitment towards sustainability and offer eco-friendly products to our customers while ensuring compliance in changing regulatory requirements. Drawing on our knowledge of resin design, our focus is to provide resin products like UV oligomers, modified Rosin resin, polyurethane resin or polyester resin that meet various requirements of the printing, packaging, and coating industries. These efforts will enable us to expand our chemical business portfolio and cater to a larger market size. 

New projects implemented in FY 2022-23? Expansion plans for FY 2023-24? 

We are excited to expand our UV oligomer, monomer, and ketonic resin product range. At the same time, we are also exploring the possibility of collaborating with some of the leading companies for custom manufacturing. We are seeking synergies that can complement our assets and strong operational know-how to achieve greater business efficiencies and customer satisfaction. We will continue to provide updates on this through our official communication channels. 

The company is offering a wide range of products for use in radiation-curing systems. Potential use cases and key customers for products for use in radio-curing systems? 

Radiation-curing systems have a wide range of potential uses and customers in various industries. The printing industry is the biggest: Radiation-curing systems are used in the printing industry to cure inks and coatings on various substrates such as paper, plastic or metal. Additionally, they are often used in the coatings industry for automobiles.  

hubergroup is also currently placing a special focus on wood coatings. What's your overview of the Indian market and when are you planning to launch this product in India?  

The wood coating market in India has been growing steadily over the years, driven by increasing demand from various end-use industries such as furniture, construction, and automotive. The market is expected to continue its growth trajectory in the coming years, thanks to rising disposable incomes, urbanization, and increasing construction activities in the country. 

At hubergroup, we have some unique solutions like UV oligomers (polyester acrylate, urethane acrylate, and epoxy acrylate), functional resins, monomers (TPGDA, DPGDA, PETIA, GPTA, EOTMPTA, PPTTA, and DPHA), conventional resins (modified Rosin and polyurethane) specially designed for the wood industry to enhance coating performance.  

hubergroup is also focusing on providing chemical substances such as PU resins and UV oligomers in their purest form and driving forward product innovations. How are you moving in this direction? 

The progress for PU resins and UV oligomers is good with several products launched in 2022-23 that are technologically well accepted. We are now adding capacities to scale-up our production and optimize cost. We also have products for the wood coating segment now. 

The company is taking a holistic view of sustainability and is also driving a circular economy. Steps taken by hubergroup India on sustainability and circular economy front? 

At hubergroup, we have placed a great emphasis on sustainability for many years. We have been a pioneer for eco-friendly printing solutions such as cobalt-free inks and we will continue this approach for our Chemicals Division as well. We have taken several key steps to improve sustainability and adopt circular economy principles like measure and track environmental impact, adopt circular economy principles to design products for longevity, set sustainability targets, engage with suppliers, invest in renewable energy, promote sustainable products, and partnerships with stakeholders.

At our largest production site in Vapi, India, we have, for example, implemented photovoltaic systems and a?Multi Effect Evaporator (MEE)?into operation, a state-of-the-art technology which ensures efficient processing of the site’s effluents.  

What are the steps you are undertaking to achieve Net Carbon Zero? 

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 also implemented photovoltaic systems in our plants. We are also fostering use of renewable energy sources like wind and solar. 

In FY 2022-23, hubergroup India launched a healthcare initiative for rural areas in the Indian state of Gujarat, collaborating with Rotary Vapi Riverside. CSR activities undertaken by the company in FY 2022-23 and plans for FY 2023-24? 

hubergroup has production sites in Daman, Vapi, and Silvassa – So many of our employees live in these regions. We believe in contributing and giving back to the people in our neighbourhood. Our endeavour is to provide quality healthcare services at the doorsteps of rural residents complementing the government promoted health programmes. Our services through two mobile medical vans were well accepted by villagers. This prompted us to add two more vans, one for dental and one for eye care in March 2023. Moreover, we donated a high-end digital mammography system to the newly inaugurated Mammography Department at Shreyas Medicare Janseva Hospital Vapi, India. Going forward, this year our CSR activities will once again be committed to service in the health and education sector.

June 08, 2023

Evonik is exploring the sourcing of renewable energy for its production assets in India. The company is also evaluating the utilization of biomass as an energy source to further reduce scope 1 and 2 emissions. 

What are the global trends in specialty chemicals in 2023? 

Last year, the effects of the Ukraine war, high inflation, and fluctuating energy prices brought significant challenges to our operations and also the chemical industry, and they still do. At Evonik, we are cautiously optimistic for 2023. Much will depend on how sustainably energy prices and inflation will soften and how strong the recovery of the global economy is going to be, especially with respect to China. In the first quarter of 2023, in particular, the negative trend of the second half of 2022 continued. From the second quarter onwards, the situation is likely to gradually improve.

Amid the headwinds, the industry is pressing on with its transformation towards sustainability. So is Evonik. With our next phase of strategic transformation, we have fully and systematically integrated sustainability into all elements of our strategy. We are executing targeted and massive investments in green growth and making sustainability our central innovation driver. In this context, we are strengthening our sustainability portfolio and reducing our footprint by cutting emissions from production and processing.

Evonik India's performance in FY 2022-23? List the key achievements for Specialty Additives, Nutrition & Care, Smart Materials, and Performance Materials division in FY 2022-23? 
Evonik's India cluster had a strong growth in FY 2022–23 compared to FY 2012–13, with robust performance across the Specialty Additives, Nutrition & Care, and Smart Materials divisions, and steady performance in the Performance Materials division.

Globally, Evonik is focusing on transformation through sustainability and profitability. What's your strategy for India and how are you making it a reality? Sustainability is a central element in Evonik's purpose ‘Leading Beyond Chemistry’. Evonik India sustainability plans for FY 2023-24? 
Evonik goes far beyond chemistry to create innovative, profitable, and sustainable solutions for customers. As a specialty chemicals company with presence throughout the world, Evonik sees sustainability and long-term business success as two sides of the same coin.

In line with Evonik’s sustainability approach, our endeavour for India assets is to reduce carbon footprint by significantly cutting greenhouse gas emissions from production and processing. Also, in India, we are exploring ways to utilise available bioresources to improve the sustainability of our products. The inauguration of the Zero Liquid Discharge Plant at our Dombivli (Maharashtra, India) site last year is evident of how we accept responsibility for our businesses, our employees, the environment, and society.

Further, in India, we can also play an enabling role in the country’s sustainable journey by providing solutions to our customers and industry. The so-called Next Generation Solutions from Evonik not only make our customers' products more sustainable but also help them improve their climate footprint.

For example, in line with India’s net zero target by 2070 and 500 GW renewable energy target by 2030, the Sustainable Alternative Towards Affordable Transportation initiative, Evonik is supporting our customers by providing sustainable products and solutions like Sepuran Green membranes for Bio-CNG applications, CAPLUS for CO2 removal, Vestamin IPD for wind turbine applications, etc.

Evonik is making targeted investments in six defined innovation growth fields that promise high returns. Please explain? 
Our innovation portfolio focuses on six growth fields, which are assigned to our growth engines in highly attractive markets with above-average growth rates. The six growth fields are: Sustainable nutrition for livestock and people; Healthcare solutions; Health-enhancing substances and nutritional supplements; Gas separation membranes; Cosmetics solutions; and products for additive manufacturing. 

We are right on track to generate additional sales of more than €1 billion with our innovation growth fields by 2025. Sales from these innovation growth fields rose more than 20 percent last year to €600 million.

The company has set a goal of investing more than €3 billion in the growth of Next Generation Solutions by 2030 in order to increase their share to more than 50 percent. Areas where you are investing? 

Next-Generation solutions are products with superior sustainability benefits. That includes, for example, drug delivery technologies for controlled release of pharmaceutical active ingredients, gas separation membranes for biogas and hydrogen, as well as natural-based active ingredients for cosmetics. Examples of investments include: Battery materials: We have opened a new research centre for lithium-ion batteries in China. In Japan, we are expanding production capacity for alumina for the battery market; Biodegradable surfactants: Production plant for biodegradable surfactants is being built in Slovakia; and Pharmaceutical lipids: In the USA, we have just begun construction of a plant for pharmaceutical lipids required for mRNA-based medicines.

Do you see an increased role of Evonik India's R&D centres in the global scheme of things? New areas where you would be focusing? 

India is the 5th largest economy in the world. With the pace at which the economy is growing and also with the impact of the budget for 2022–2023, domestic demand is also expected to increase. Under these circumstances, Evonik’s business is expected to grow at a good rate. With most of our products being technology-driven, I would definitely expect Evonik’s R&D centre to play a very important role in areas of new product and technology development. Evonik’s R&D centre would also play a role in tapping the needs of the Indian market and developing products to suit the specific requirements of Indian customers.

The Research Centre India (RCI) was established in 2002. RCI is Evonik’s Oral Competence Centre, providing global support in formulation development for the pharmaceutical, nutraceutical, and food industries. RCI has been identified as a differentiator by continuously enhancing its competencies and footprint to support the global health care business. 

Aligning with this centre is the Catalyst R&D facility at Dombivli, located in the industrial corridor on the outskirts of Mumbai. Catering to regional and global customers across varied industries such as pharmaceuticals, agro, fine chemicals, food, and edible oil, this site supports the product line Life Sciences and Performance Catalysts, which comprises oil and fat hydrogenation catalysts, precious metal catalysts, and activated metal catalysts.

Over the last two decades, the R&D centres in India have played an important role at a global level in delivering new products and technologies. The potential of the Indian technical talent pool has been acknowledged over the years. I feel confident that the role of Evonik’s R&D centres will become even larger over the coming years, and organic synthesis will also be a focus in India, along with Oral and Catalyst. The focus will be on next-generation solutions with clearly positive sustainability benefits that are above the market reference.

Important step in the sustainable transformation is the rapid overhaul of energy supply. What's your India strategy with respect to purchasing green/renewable electricity and how are you making it a reality? 

We are exploring the sourcing of renewable energy for our production assets in India. We are also evaluating the utilization of biomass as an energy source to further reduce scope 1 and 2 emissions.

CSR initiatives planned for FY 2023-24? 

We are deeply committed to improving the social environment in any way possible and consciously reach out to support causes across the board, primarily in the realms of children’s education, women's empowerment, and healthcare. In 2023, we are entering into a partnership with CARE India to support the STEM education of girls from underprivileged areas. Evonik will support the setup of seven vibrant STEM learning spaces called the "innovator’s laboratory". These are community-level tinkering spaces for children to build STEM thinking skills using digital and non-digital tools. Also, onsite mentoring, community events, and student-driven projects will be organised to improve the science, mathematics, and digital literacy skills of girls.