July 01, 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

Haropa Port aims to be a Green hub by:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

June 29, 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

June 25, 2023

What new products you are launching in the Indian market?   

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

June 24, 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Key sustainability initiatives started by the company? 

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

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

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

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

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

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

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

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

June 21, 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

June 21, 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.