August 02, 2022

NextGen 2022 : Paints & Coatings: The Next Growth Frontier

August 02, 2022

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August 01, 2022

NextGen 2022 : INAUGURAL SESSION

August 01, 2022

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August 01, 2022

What is the size of global and India market for surface finishing for FY 2022-23?

The global metal finishing market is estimated to be roughly around US $90.97 bi[1]lion. The metal finishing market is projected to grow at a CAGR of over 4% over the next 5 years. The India metal treatment chemical market is expected to grow at a CAGR of 5.68% to reach US $378.4 million by the end of 2023. The prominent application includes automotive OEM & component industry followed by metalworking, electrical & electronic, and industrial machinery.

How has been the company’s performance in FY 2021-22 what’s the forecast for FY 2022-23? FY 2021-22 has been a challenging year.

There has been a slowdown in auto manufacturing due to significant supply chain disruptions in chips worldwide; creating muted downstream demand for chemicals. Commodity prices were very volatile throughout the year and spiked in the second half of the financial year. The result of all this had been a significant inflation impact which, our organization, using all possible means managed to circumvent and still managed to achieve growth over last year. Until December 2021, the YTD growth is 45% for the entire group.

• Performance of chemicals division in FY 2021-22 and plans for FY 2022-23

Until December 2021, the YTD growth is 42% in the chemicals division. With our current efforts towards introducing new chemical processes which are free from hazardous chemicals, we expect to bag good orders this year and maintain a healthy growth in FY 2022-23.

• Performance of the engineering division in FY 2021-22 and plans for FY 2022-23

Until December 2021, the YTD growth is more than double in the engineering division. With the effort towards developing new export markets in FY 2021-22, we hope to see some more orders coming in from international customers which should help us in maintaining a healthy growth in FY 2022-23.  We are also working on introducing some new purification systems in our lines which will help reduce waste effluent generation from our plants, thus reducing the total water consumption.

• Performance of paints division in FY 2021-22 and plans for FY 2022-23

Until December 2021, the YTD growth is 34% in the paints division. With our new development in under water cure paints and high-performance for the defence sector, we expect to have a good year ahead. The company has collaborated with NoF Metal Coatings Group and Transocean Coatings.

How do you see these collaborations helping your clients? Any plans for new collaborations?

We have a long-standing relationship with Japan’s number one Zinc Aluminium Flake Coating manufacturers NOF Metal Coatings Asia Pacifc Co. Ltd. Zinc Flake coatings provide outstanding protection to metallic surfaces against corrosion. The coating is known by the name ‘Geomet’ and contains inorganic silver-grey deposits essentially comprising Zinc and Aluminium flakes, uniformly distributed on the entire substrate.

The Geomet process is well established, superior in technology, and environment-friendly. It is used in many industries throughout the world, such as automobiles, windmills, engineering, electricals & electronics, white goods, mining, railways, process industry, and defence.

Growel’s Paints business has tied up with Transocean Netherland for HPC and marine coating. We have been able to cater to the requirements of this industry and the tie up has helped us in bagging large supply contracts against all multinational companies.

You have a world class R&D centre which focuses on technology leadership. What are the new innovations and solutions that the company is working on in the surface finishing field?

Chemical Business: We all are aware that application of coatings (either by electrodeposition or electroless) utilizes several chemical processes. Some of these chemicals are hazardous. In addition, there are some new restrictions coming in force from the developed countries while using these chemicals. To address this issue, our major focus is to develop processes which are free from hazardous chemicals.

Some of the newly developed processes are: Cyanide Free Process; Hexavalent Chrome Free Process; and ROHS Compliant Electroless Nickel.

Cyanide Free Process:

a. Alkaline non cyanide free zinc plating: Traditional process for zinc plating involves sodium cyanide. Our new process is free from cyanide. It involves sodium zincate electrolyte with quaternary ammonium copolymer which acts as a grain refiner. Therefore, we get sustainable zinc deposits with excellent brightness & throwing power.

b. Alkaline cyanide free copper: Utilisation of cyanide copper as strike coat in decorative finishing involving copper-nickel-chrome for several applications e.g. plating on plastics on faucets, hardware etc, is very much well known & also, established. We have successfully established non cyanide alkaline copper & therefore, our clients could avoid using poisonous cyanides at this working domain.

c. Non cyanide Silver: Our recent launch in the cyanide free drive is decorative cyanide free silver plating. We have established this process from plating on bus bars & also, on artificial jewellery components in India.

Hexavalent Chrome Free process:

a. Hexavalent Chrome free passivates using trivalent chrome: Now, client gets relief to refrain in using carcinogenic hexavalent chrome-based passivation process. It is now possible for them to switch over to trivalent chrome based passivates. Trivalent chrome-based processes are not known to be carcinogenic & hence; these are allowed in the industry for usage. Utilizing these new processes, it is now feasible for users to conform to the ROHS, WEEE, ELV, REACH directives.

b. Decorative Chrome plating utilising trivalent chrome-based electrolyte: Our developed products involving trivalent chrome based electrolyte replaces the traditional & edge old hexavalent chrome based solutions.

Therefore, users now can eliminate the hex chrome in the chrome plating space as well.

ROHS Compliant Electroless Nickel: Electroless nickel plating process utilising lead, cadmium is well known. But, usage of lead, cadmium etc are very much restricted.

We have come up with lead & cadmium free options through our new launches. These new processes involve some alternative stabilizers & brighteners to make the corresponding system to enable to get desired stability, brightness & also, corrosion resistance. Some of these processes even surpasses the traditional process in terms of much higher bath life & therefore, it gives client conformance with newer directives and also, improving the overall system performance through lower chemical consumptions which eventually reduces cost of plating and also, environment footprint.

Several coatings are developed to enhance the overall service life of the processed components. This provides the user to extend the part changing schedules & therefore, reduces overall environment footprint. Some of these processes are: Zinc alloys - Zinc Nickel – Alkaline, Acidic, Tin Zinc, Zinc Iron etc.; Post Passivation Sealers for Zinc & Zinc alloys; and Electroless Nickel Composite coatings - Electroless Ni-PTFE, Ni-Diamond increases wear resistance.

Paints Business: We have developed underwater cure paints and other high-performance paints for Brahmos, battle tanks, underground buried pipelines. We have also developed food grade epoxy pains which are approved by NSF USA and WRAS UK

July 27, 2022

What are the global trends in the petrochemicals sector in 2022 and how would explain its impact on India?

The global petrochemicals market size was valued at US $536.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% in terms of revenue from 2021 to 2028. The International Energy Agency (IEA) has forecasted that the petrochemical sector will account for one-third of oil demand growth by 2030 and will be nearly half in 2050. It has been estimated that production of key plastics will more than double between 2010 and 2050.

As per the recent study, Asia-Pacific, Middle East, and the US are the three demand centres of the petrochemicals market. Therefore, these three regions are investing heavily to boost petrochemical processing capacity to satisfy demand.

Post 2016, after the dip in oil price, all Middle East Nations started to invest in new downstream processing plants, especially in the production of petrochemicals to mitigate reliance on oil export revenues and diversify their product portfolios. Ethane remains the dominant feedstock in North America and the Middle East while Naphtha is most favoured in China and Europe. Therefore, China is expected to shift the ethylene production technology to crude-oil-based naphtha instead of relying on coal-to-olefins and methanol-to-olefins routes due to environmental regulations and other issues. Again, Naphtha percentage in the Western European cracker feedstock supply is gradually decreasing as the newer units have shifted to the lighter feeds. Therefore, since 2014-15, C4 chemicals and aromatics markets are riding on increased demand. Taking this advantage, China has built many units that will convert crude-oil-to-chemicals with a focus to produce aromatics, primarily paraxylene, benzene etc.

If we consider the Indian scenario, the growth of the petrochemical sector is always more than the GDP growth of the country. The average estimated growth for the next 5 to 7 years is about 9.3% against the world average of 5.2%. To meet the growing demand of petrochemicals, India needs five cracker units by 2025 and 14 units by 2040.

According to media report, India’s domestic ethylene capacity has increased from 4 MTPA in 2014 to 7.4 MTPA in 2021. Given the strong underlying demand trends, India’s petrochemical sector is now itnessing a significant investment boom, with several multibillion-dollar assets. The 18 million metric ton (MMT) in West Coast refinery, which is a joint venture between Abu Dhabi National Oil Company (ADNOC), Saudi Aramco, IOCL, BPCL, and HPCL, is an example of the Indian’s commitment to satisfy demand and mitigate imports.

What are the key milestones achieved by BCPL in FY 2021-22? How has the company's revenue and profit performance been during FY 2021-22 and what is forecast for FY 2022-23?

In FY 2021-22, the company has geared up the pace after being hit by the pandemic on a global front. Although the world economy has slowed down and the same has hit hard on us, BCPL was still able to achieve 100% capacity utilization during the FY 2021-22.

Coming to the company's revenue and profit performance, the revenue and profit for the year 2020-21 was around Rs. 2,902 crores and Rs. 740 crores respectively. Similarly, trends of revenue and profits are expected in the FY 2021-22 and FY 2022-23, although the same would be driven by feed[1]stock costs and the polymer market demand.

What is BCPL's Capex plans for FY 2022-23? New products where you are focusing and how it will impact BCPL? What are your plans related to automation and digitalization across all BCPL's plants?

BCPL has envisaged Capex of Rs. 157 crores during 2022-23, out of which Rs. 100 crores shall be towards setting up of two new projects, Butene-1 and HPG (2nd stage) plants with capacity 10 KTPA and 52 KTPA respectively which is a part of expansion of the business.

BCPL is a relatively new petrochemical complex commissioned six years back in 2016. Therefore, the latest state-of-the-art technology was used in our process plants.

SAP has been in operation since 2017 and the Plant Maintenance (PM) module is going to be implemented soon. Modules like Laboratory Quality Management System (LQMS) are already in operation and several others have been developed in house for ease of office operations. BCPL is always in the forefront to update its software and hardware systems to keep pace with the latest technological advancements.

Which products are planned for diversification by BCPL and by when? When are you doubling BCPL's capacity?

Detailed study is being carried out for exploring the diversification as well as capacity enhancement of the petrochemical complex. The study on capacity enhancement of major units of BCPL are going on and the results are expected in FY 2022-23. Recently, a MoU was signed with Shyama Prasad Mukherjee Port, Kolkata (SMPK) for streamlining logistic chain for movement of feedstock like Naphtha via railway or via NW-2 by setting up of tankage facility at Haldia Dock Complex. These will provide BCPL additional cushion in addition to the domestic market to imported feed from the international market as and when required.

What is the BCPL's group refining/processing capacity per annum at the end FY 2021-22 and what's your share nationally? How are you planning to increase market share?

The nameplate capacity of BCPL is 280 KMT and its market share is about 3% in terms of national polymer production capacity. It is a matter of pride that the products of BCPL are being consumed 100% in its targeted markets and as such the worth of increasing the market share is already fetching good results. However, the same is being explored for its market in the North East region for better consumption by increasing awareness among the youths for its scope in wider utility and hence making profits. Development of downstream industries are being targeted and involvement of prospective buyers are increased.

As a part of Hydrocarbon Vision 2030 for North East India, what role BCPL will play in increasing feedstock to boost polymer business?

BCPL is running with the dual feed cracker and predominantly getting natural gas from upstream companies like OIL, ONGC, and some private players and Naphtha from refineries. Even though BCPL is not directly linked with Hydrocarbon Vision 2030 for North East (NE) India, BCPL is one of the ma[1]jor gas consumers in the NE region. BCPL is making collaborating efforts to help achieve the objective of Hydrocarbon Vision 2030 for North East by strategizing its expansion plan to bridge the gap between demand and supply of gas in the NE region.

How much is the annual processing capacity of BCPL's Petrochemical Complex at Lepetkata in Assam where Polymers are being produced after processing the feedstock? Any plans of scaling it up?

At 100% design capacity, BCPL can produce 220 KTA of Poly Ethylene and 60KTA of Polypropylene with 43.7 KTA of Hydrogenated Pyrolysis gasoline and 9.3 KTA of Fuel oil as by-products.

BCPL has all geared up for expanding its annual production capacity. Detailed study is being done in consultation with the Process Licensors to carry out the debottlenecking of the existing plants. As demand for petrochemicals is expected to go up in the next few decades, therefore the prospects for expansion are quite promising for BCPL. BCPL has initiated dialogues with the upstream oil companies for the availability of feedstock to plan the expansion of the plant. Feasibility to undertake the expansion exercise are also being conducted.

LLDPE/HDPE Swing unit at BCPL's Petrochemical Complex produces 2,20,000 TPA of polymer grade Ethylene and 60,000 TPA of polymer grade of Propylene. Any plans of scaling it up?

As already mentioned above, the feasibility study is being carried out to undertake the expansion activity. Based on the feasibility study report further action will be taken up.

How much is the annual processing capacity of Gas dehydration and compressor at GDU Duliajan where feed natural gas is processed from Oil India Limited? Any plans of scaling it up?

The present processing capacity of GDU Duliajan is 6 MMSCM per day. With the forecast of gas availability of OIL, BCPL is already carrying out a detailed study on Debottlenecking/capacity expansion.

How much is the annual processing capacity of Lakwa Natural Gas Sweetening Unit Cum C2+ Hydrocarbon Recovery Unit where feed natural gas supplied by ONGC is processed? Any plans of scaling it up?

The design of the annual gas handling capacity of BCPL Lakwa Unit is 333 MMSCMD to produce 28,000 TPA of C2+. Rich gas has been recently explored by private companies in several blocks of Assam basin including Charaideo and Golaghat regions which is relatively near to BCPL Lakwa unit.

BCPL has entered into an MoU with Assam Gas Company for supply of rich gas to Lakwa plant. Apart from that, discussion is on with the upstream companies to infuse additional gas to Lakwa plant.

What is the strategy adopted by the company for marketing its products through GAIL and others?

BCPL has entered into a marketing agreement with GAIL for a period of ten years for marketing of BCPL products. Through this agreement, BCPL has been able to utilize the well-established polymer network of GAIL for establishing its brand across the length and breadth of the country. BCPL has been able to use the technical expertise of GAIL Polymer Technology Centre (GPTC) for improving and upgrading product quality. BCPL polymer products have been well established in the domestic as well as international market and are being used for quite a number of critical applications in various sectors.

How is the company striking a balance between sustainability and growth? Sustainability projects planned to be undertaken in FY 2022-23?

BCPL faced several challenges in the initial phase of operation and stabilization of the petrochemical unit. BCPL has taken initiative to control its emission by selecting state-of-the-art clean technologies which are producing fewer pollutants and all parameters are maintained well under prescribed limits of the statutory body. Waste reduction is also part of BCPL’s environment care and it has achieved 15% wastewater reduction in the last FY 2021-22. BCPL is also working on CO2 emission reduction by capturing and supplying to upstream majors like OIL for sequestration in oil enhancement projects which will pave the way for strong checks on CO2 emission.

The issue of feedstock availability and sustainability was very well handled by BCPL to run the plant at more than 100% capacity for the last four years. Purchasing of Butene-1 via spot purchase is an assiduous step in this regard. Several MoUs have been signed recently with small oil/gas producing companies as well as with some government bodies to ascertain BCPL’s feedstock availability as well as streaming the logistics part.

CSR initiatives to be undertaken by the company in FY2022-23?

We have entered into the CSR regime from the FY 2020-21, wherein we have taken up projects of around Rs. 11.5 crore. In the year FY 2021-22 we have taken up projects of around Rs. 19.1 crores. The execution time of some of these projects are spreading between one to three years. We are mainly concentrating our CSR activities in and around our Unit operating areas. In FY 2022-23, the projects are being finalized and we will be spending around Rs. 20 crores for CSR activities.

July 25, 2022

What are the global trends in chemicals and ingredient distribution business in 2022 and how do you see its implication on India?

Chemicals: Key trends in chemicals are leaning towards natural, organic, sustainable, biodegradable, low/zero carbon footprint chemicals. Customers have started moving up the value chain.

The supply situation of key chemicals and ingredients is expected to remain tight in 2022 due to global logistic challenges and the current geopolitical situation, as a result of the Russia-Ukraine crisis amongst others. For example, crude derivatives form 30-45% of raw material costs for paint companies. A rise in crude oil and currency depreciation adds to the pressure of the price of raw materials and therefore profitability of paint companies.

To counter continuing supply challenges, organisations will have to be working strategically to put up the right business continuity plans in place. Distribution companies with a global footprint like Brenntag can potentially provide partial relief to supply challenges by alternate sourcing, demand forecasting and end-to-end supply chain services. Service excellence is also a key tool for differentiation for us, along with value-added offerings like blending solutions, repackaging, etc.

Food ingredients: Globally, we are seeing Generation Z and Baby Boomers become increasingly focused on improving mental wellbeing and managing stress through their nutrition. Stay-at-home lifestyle during the pandemic has impacted food behaviour. 32% of consumers globally have cooked or baked at home and increased their snacking at home as well. Fresh, local, and traditional foods are getting priority in this environment and are expected to remain strong as their multiple benefits hit home with consumers. Better ingredients, authenticity and better nutrition are a key focus of consumers’ buying decisions.

Many also look at natural ingredients in the labels. Other trends are: reductions (sugar, salt, etc.), control (immunity boosters), and enriched positive effects (gut health through fibre, protein, vitamins, and minerals).

India is catching up with global trends due to increased customer’s preference for healthy alternatives and people becoming more nutrition conscious. Key trends in India are in line with global mega trends – plant[1]based products, tech to table, gut health, back to roots, and amplified experience (food as entertainment). Additionally, food processors are focusing on greener and cleaner India. Some companies claim they are water positive, carbon positive, solid waste recycling positive for over 10 years. Others are giving 100% commitment to use reused and compostable packaging.

Also, sustainability and health are driving veganism as a key trend, as it is seen as healthier and better for the planet. Consumers are increasingly looking for plant-based alternatives to meat and dairy. Increased options in quick service restaurant food chains also include menus with vegan options. For consumers, food safety, health aspects and nutritional content are becoming top purchasing preferences.

How are you trying to minimize supply chain constraints in 2022?

Brenntag India mainly imports chemicals from Asian countries. The challenge we faced during the pandemic was the shortage of containers for handling cargo. We have started keeping inventory for three months to avoid shortages and loss of sales volume and market share.

Another major problem many companies face is the non-availability of transportation infrastructure across multiple emerging economies. Brenntag India has warehouses at multiple locations stretching from North-South, to West-East to cater to our local customers.

Digital platforms bring chemical distributors, manufacturers, and consumers together and provide suitable solutions. Brenntag India has already embraced a digital/e-commerce platform – Brenntag Connect – to receive customer enquiries, orders, searching products and pricing inquiries, viewing and downloading documents, tracking shipments, etc. thus reducing turnaround time in these internal processes. Brenntag India customers can now register and start adding chemicals and ingredients to their shopping carts on Brenntag Connect available on our website.

Key learnings during the pandemic and how do you plan to move ahead in future with respect to supply chain challenges?

Freight prices increased by three times during the pandemic and there was a shortage of containers. The world was not at all prepared for handling such a scenario. Brenntag employees worked tirelessly to ensure the continuity of business for us and our customers and have had outstanding business results with the support of our key business and supply partners. We plan to move ahead in the future by having better forecasts and building enough inventory to meet our business requirements.

How has Brenntag India performed both in the Essentials and Specialties Business Units?

Since 2020, the Brenntag operating mod[1]el has included two global divisions, Brenntag Specialties and Brenntag Essentials, with a distinct market approach addressing the changing needs of our business partners.

With our transformation program “Project Brenntag” we are laying solid foundations for sustainable organic earnings growth and even stronger partnerships with our customers and suppliers.

Brenntag Specialties division is focused on performance chemicals and ingredients, which tend to enhance performance of the manufacturing process and end products.

Hence, they are directly used in the production of customer’s end products. The key factor behind the growth of specialty chemicals is that they are more consumer-centric and are designed for specific applications to manufacture end-use products as compared to commodity chemicals. Thus, they offer higher growth rates, although the volumes of the specialty chemicals are generally lower than commodity chemicals.

Brenntag Essentials division is the agile, lean, and most efficient partner of choice for our customers in local geographies for high volume delivery, which requires local market knowhow, creates a strong Brenntag brand recognition and works in markets with high barriers to entry. The operating model is complemented by a distinct go-to-market approach with globally harmonized and advanced customer segmentation, in addition to a focused sales organization geared to customer requirements.

Both Brenntag Essentials and Brenntag Specialities have performed above budget for the year 2021 with Brenntag Specialties being the larger part in the Indian market.

What is the role of Brenntag's Regional Hub of Asia Pacific in ensuring centralized coordination between regional suppliers and India specific sites?

The Regional Hub as a single point of con[1]tact for Asia Pacific supply chains helps reduce traditional complexities. With it, suppliers have one regional point of contact for supply chain issues and receive forecasts and full-container load orders. Customers feel assured with stock availability in Asia and have reduced lead time for regular product orders.

Brenntag also has a global sourcing arm called Global Sourcing Organization (GSO), which provides access to industrial and specialty chemicals from emerging markets like China, India, Korea, Taiwan, and Southeast Asia whilst ensuring quality, reliability, sustainability and in compliance with Brenntag standards.

Brenntag India has the second largest team of GSO in Asia Pacific, second to China.

From the Regional Hub, GSO and procurement arms of Brenntag Essentials and Brenntag Specialties business units coordinate to facilitate supplier products to Brenntag India sites.

The company has signed a distribution agreement with Elementis in Asia Pacific. What are your India plans?

The relationship with Elementis in India aims to explore new opportunities by having a deeper understanding of the market and changing customer needs, and by partnering in localization and innovation. Brenntag will set up a Coatings Applications Development Centre near Mumbai to support customers and offer them our technical application capabilities. The team is super excited and is looking forward to creating more value for customers in India.

What are the new initiatives being planned by Brenntag India and Capex allocation for the same?

Being a chemical and ingredients distribution company, Brenntag has plans to invest in warehouse facilities closer to customers in North India to help service the market better.

Further blending facilities for Food, Material Science, Lubricants along with Material Science application laboratory are also being planned.

What is your business outlook for the Indian market in 2022? How are you planning to achieve it during the year?

A strong increase in demand is notice[1]able after two years of subdued demand during the pandemic. We are aligning our portfolio to market demand, and plan to stay invested in key industry trends.

The Indian food processing industry is having a robust double-digit growth. We plan to grow in line with a continued solution-based approach, leveraging Brenntag’s global knowledge and local application expertise with application development centres.

At Brenntag, we apply a customer segment approach - offering the right technological and commercial expertise and specific value proposition. Furthermore, Brenntag India continues to invest in human capital and build a great workplace culture. In fact, we have been again certified as a Great Place to Work.

How do you address sustainability issues? Any key initiatives in the Indian context in 2022?

Sustainability is a fundamental part of Brenntag’s corporate strategy, a constant business driver and an integral part of Brenntag’s corporate culture.

Brenntag’s key role in the value chain offers huge potential, but also entails an obligation to contribute towards greater sustainability in the industry.

Safety is the highest priority at Brenntag, both for our employees as well as our customers and partners. Brenntag India strives to ensure bringing down the TRIR (Total Recordable Injury Rate). There exist strict management and safety standards across all Brenntag India sites. We are engaged in various environmental activities like tree planting, opting for paperless offices, solar powered offices, as well as using split ACs instead of central air conditioning. Further plans are to ensure that the new warehouse we are soliciting in North India will meet our sustainability parameters.

Brenntag has committed to switching its electricity consumption completely to green electricity by 2025 under the global RE100 initiative. What are your India plans?

We are committed to the principles of Responsible Care and Responsible Distribution. The Brenntag India office in Gurgaon has already implemented a solar powered office set-up. We also follow natural lighting at our warehouses. We believe in staying in proximity with our local customers, so by optimizing both the distance to the customer and trans[1]port requirements, we will also lower CO2 emissions and improve our environmental footprint.

Is Brenntag India planning any acquisition for increasing its market share in India?

Both organic and inorganic growth have been integral parts of Brenntag’s strategy. In 2018, Brenntag acquired Raj Petro, which has turned out to be a very successful acquisition. Similarly, we will always be interested in distribution and value-addition service companies which will provide synergy to the growth of Brenntag India.

July 25, 2022

Interview with Mahesh Majumdar & Akshay Purohit, Senior Manager, Technical Sales & Marketing, Prompt Consultants

July 25, 2022

Interview with Mahesh Aradhye, AVP - R&D (Paints) & Hemant Dange, AVP (Paints), Grauer & Weil (India) Limited

July 22, 2022

The Quantico Group investment will drive business development and marketing, chemical manufacturers’ onboarding, deploying innovative technologies, and streamlining operational processes thereby taking the company to the next level.

2022 global trends in online chemical business and its implications on India?

As the chemical industry moves into 2022, there is a strong demand for both commodity and specialty chemicals. Chemical manufacturers are gradually adopting digital technologies across various areas such as manufacturing operations, product development, pricing, supply chain, and market expansion.

The industry will experience increased capital expenditure (Capex) as leading industry players are focusing on building capacities and expanding into growing the industry through both organic and inorganic routes. However, the industry could face margin pressures amid raw material cost inflation which will remain high throughout the first half of 2022.

What's the size of the online chemical business in India with respect to FY 2022-23 and areas where it is growing?

The pandemic shook the chemical industry just as it did other sectors and in H1 FY22, the majority of companies witnessed a slump in their operating margins and looking for a new opportunity in the wake of COVID-19.

According to market research companies, the digital chemical industry market size in India was valued at US $27.1 billion in 2021, and it is expected to reach US $162.7 billion in 2030, recording a promising CAGR of 21.4% from 2022 to 2030.

Asia promises to be an attractive market for specialty chemicals globally and India presents a growing opportunity for local players. Indian companies need to ramp up readiness to realize maximum advantage from the specialty chemical sector's growth potential, adding that the market in specialty chemicals is moving to Asia with strong tail[1]winds providing growth momentum across the forty segments that make up the market.

The specialty chemical segments in India - Agrochemicals, surfactants, specialty polymers, textile chemicals, and dyes are among the top segments expected to maintain relative leadership and further grow in line with market demand. Cosmetic chemicals, adhesives and sealants, flavours and fragrances, printing inks, food additives, and water management chemicals are a few emerging segments expected to grow fast through online sales and thereby increasing the market size in FY 2022-23.

What is the current product base of Carbanio? What's your future plan to increase product base to give it a pan-India presence?

Carbanio is India`s leading B2B chemical marketplace and we have all the categories of chemical products with respect to the chemical industry. We are focusing on adding more specialty chemical products from chemical manufacturers across India.

To achieve this, we are now digitizing all chemical clusters in India. India has excellent chemical clusters which lend themselves to digitization to create a bigger product base for Carbanio.

Recently, the company has raised US $1.3 million led by Quantico Group. How are you planning to utilize this fund?

Our recent funding adds more strength to our digital-led disruption in the chemical Industry. The Quantico Group investment will drive business development and marketing, chemical manufacturers’ onboarding, deploying innovative technologies, and stream[1]lining operational processes thereby taking the company to the next level. With current funding, we are adding more team members and expanding our reach in Telangana, Maharashtra, and Gujarat.

When are you planning to raise the next round of funding? What would be the likely amount?

Carbanio, a leading B2B chemical marketplace has been growing strongly over the last four years, in particular with increased demand due to the pandemic, and has a strong value proposition. Our current focus remains on growth and maximizing its network effects. We expect to soon begin raising Series A funding for the next phase of growth.

How are you planning to leverage partnerships with educational institutes? Are you planning to sign any new partnerships?

As a B2B chemical marketplace, we have business users and academic organisations. Till now academic organisations are using age-old processes for ordering chemical products through enquiry, quotation, and negotiation process.

Carbanio now offers digital solutions to avoid lengthy process of enquiry, quotation, negotiation, and providing convenience to or[1]der chemicals 65% lesser than market price in a few clicks. With this big digital disruption now more than 1,300 research organisations including IITs, NITs, IISER, and universities are directly ordering chemicals through Carbanio.

You have launched CarbanioPlus. How will this product be helpful for research institutions and facilities provided to institutes?

CarbanioPlus is Artificial Intelligence (AI) enabled custom manufacturing solution for niche and complex chemicals. CarbanioPlus, an extended arm of Carbanio.com is an integrated network of global manufacturers aligned with stringent processes using robust and advanced technology helping clients globally achieve the new chemical manufacturing in a shorter timeline.

Carbanio has millions of chemical products and thousands of trusted chemical manufacturers across India. Now we are leveraging their manufacturing capacity by using our advanced Artificial Intelligence (AI). Chemical businesses often require customized chemicals, however, finding the right manufacturer is always a challenge. CarbanioPlus, a technology driven integrated manufacturing network, offers one-stop solution for quick solution and custom manufacturing chemical needs.

Are you also planning to go international? if yes, countries and sec[1]tors where you are initially focusing on?

Yes, we are planning to go international soon. Before we start our international operation, we would like to reach all the chemical companies in India. Digital technology has established itself as a lever to enhance efficiency and productivity. Many companies worldwide are embracing digital potential; India’s companies could also tap into this opportunity to expand their profit margins.

In addition, India is the largest manufacturing hub for chemicals to global organisations. So, before we focus on the international market, we would like to strengthen our digital supply chain across India to provide uninterrupted support to global business.

Currently, we are having a strong network of global chemical manufacturers and clientele from 17 countries including, USA, Australia, Europe, and Middle East.