February 05, 2021

February 04, 2021

February 01, 2021

Madhav Prasad Aggarwal, Promoter, Sajjan India Ltd. in exclusive interaction with Pravin Prashant, Editor, Indian Chemical News talked about industry trends, company’s expansion plans, R&D plans, revenue forecasts, global activities, government policies, corporate social responsibility (CSR) initiatives, employee friendly policies, future outlook and much more. Excerpts of the interview:  

Sajjan India aims to become a top contract manufacturer of specialty chemicals. Would you like to talk about your plans in this direction?

We have been in this space for the last couple of decades starting with dyes and pigment intermediates. For the last 20 years, we have been into custom manufacturing or contract manufacturing where we obtain technology from foreign partners and fine-tune it. We make it more efficient and competitive than it has been with the inventors, scaling it up as per current manufacturing excellence standards which also means automating the plants. Not just during the COVID-19 situation but we were always working on improving technologies and automation. Currently, such activities continue on full-fledged mode and are the best way forward for the chemical industry.

We see encouraging opportunities, mainly for existing players who have a proven track record and who can handle complex reactions and hazardous raw materials which I would say is knowledge based. With the experience, we have gained over the period of time and the fantastic team we have created, we see ourselves being able to perform very efficiently to the satisfaction of our foreign partners.  

You have been very active in the chemical sector for a long time. Please throw some light on industry trends during 2021?

I think it will be a year of consolidation during FY 2020-21 and FY 2021-22 in the sense that Chinese industries have faced immense challenges in the last few years due to environmental and safety reasons. A lot depends on what happens vis-a-vis Chinese industry as well. Having said that the Indian industry has matured quite a bit and all the new expansions which are being undertaken by the existing players are of very good standards.

I think rather than new entrants coming in, existing players who have learned excellence in manufacturing during the last 20-30 years are better able to cope up with the pressures and invest sensibly. There are a lot of entry barriers with respect to the IP situation as well as high investment needed for the manufacturing of specialty chemicals besides technical know-hows, waste treatment plants affordability etc.  Therefore, I don’t see too many new players entering into this space but the existing ones growing bigger as this is the best space to be in for them due to advantages.

Would you like to talk about your new plant located in Ankleshwar, Gujarat?

We are setting up a new manufacturing plant on a newly acquired 16-acre plot, diagonally opposite to our current site in Ankleshwar, Gujarat. As such Sajjan India has been into chemicals since 1974 but Ankleshwar plant was commissioned during 1997 and it has since grown steadily. We have more than 500 people on the site now despite the COVID-19 situation. Our team has done an exceptional job since April 2020, operating very safely with no surprises.

We hope to commence the manufacturing in the new plant by the end of 2021, as planned and this will be for some new agro-molecules to be produced for the first time in India, involving very complex chemistry and reactions. We are all very excited and hope to be market leaders in the product segments which we anticipate to be launching by the end of FY 2021 and FY2022 onwards.

What is the investment you are planning and these molecules will cater to which markets?

In 2020, we have already invested Rs. 140 - 150 crore and going forward in 2021, we are planning to invest an additional Rs. 300 crore on expansion. I am glad to mention that we are the only company operating in this space with zero debt and we expect to remain so.

This will be an agro-based molecule being developed in partnership with foreign partners and a lot of fine-tuning by in house process experts to make it efficient and cost-effective.

How are you trying to bring down the cost? What kind of processes is your full-fledged R&D team working on?  

We have a couple of PhDs who are heading different verticals in our R&D team and there are well-qualified employees and some chemists who are working 24*7. With brainstorming internally and with foreign partners who are from top-line multinationals based in Europe and the USA, they try to make the process and manufacturing much more efficient besides trying to minimize waste which is very critical.

Please tell us about your revenue expectations and profit forecast during FY 2021 and FY 2022 respectively?

It is not actually out of design but out of default that somehow our revenues have grown more in the agriculture space contributing to more than 75% and we think it will be in the same range, 75-80% in next few years as well. In terms of numbers, up to March 2021, I think our top line will be around Rs. 1,100 - 1,200 crore. In 2022, we expect it to be more than Rs. 1,500 crore and this entirely exports. We are a 100% EOU and even though it permits a lot of sales domestically, a lot of products, close to 95% are for exports only.

We are cautious in outlook. We don’t want to grow just for the sake of numbers but it should be a win-win situation both from top-line and bottom-line. As far as profitability numbers are concerned, these are more or less aligned with industry trends. We actually beat the industry a bit because of zero finance cost and better cost structure. I think our numbers are better than the industry average.

Any specific reasons for not taking debts from the market and pushing projects through internal accruals?

Right from the inception itself, we have been very conservative about borrowing. We have never been comfortable with debt as we are cash surplus and always witnessed positive cash flow. Also being a 100% closely held company, I don’t see any reason to borrow so far.

With a lot of initiatives, you are an employee-friendly company. Any role models that you always wanted to replicate?

Yes, of course, I think so. My grandfather who started our textile business and my father are my role models. I am proud that some of our employees who had been hired by my grandfather as early as 1957 when he bought a textile mill in Madhya Pradesh, remained with us throughout. One of them recently passed away after a long association with us. There are second-generation employees as well who are attached to us for a long time.

What I have understood and always believed in is that while no doubt qualification is important, discipline, dedication and loyalty are equally important too. That’s what I firmly believe in and with the same spirit, we treat a large number of employees in a dignified manner, doing innovative things and helping them in ways that are not just standard but out of emotions. When we are doing a lot in the CSR space then why not begin at home and that’s the spirit we operate with.

What were the various CSR activities of the company in 2020 and CSR plans in 2021?

So far what we have done is a lot more in the area where we exist in Gujarat and that includes Plant Technology Study Centre, Sajjan Lions International Academy, one of the modern schools in that area. We also promoted the Department of Chemical Engineering which is a part of SR Shroff Institute. I am glad to mention that we have a long association with Breach Candy Hospital in Mumbai and now are also a part of their expansion plan. They are developing an eleven-storeyed building and for two floors we are contributing Rs. 22 crore that will host ICU and other ultra-modern facilities. We are also in process of such initiatives with new colleges and universities in Gujarat. Healthcare and education appeal to us most and we are committed to it.

What are your views on government support and your comments on the upcoming PLI scheme?

My personal opinion is that while we have many disadvantages compared to other countries, we must learn to live within the limited resources and tackle the challenges. I feel one should not just rely on incentives but perform honestly and efficiently. At the same time, I am not saying that we are not entitled to schemes or these are not required but I feel these should be made more stable and we must increase their visibility. One major concern is that policies are issued at short notice and withdrawn at short notice therefore these schemes should be consistent and with enough notice so that plans can be made well in advance. I hope there is more timely clarity about such schemes and inconsistency gets addressed appropriately.

Since your company has been predominantly into exports are there any plans to cater to domestic customers?

It’s not that we don’t want to sell domestically but the products we are manufacturing don’t have any use for domestic customers. These are very specialized end-use applications for products that are by and large patented by the inventor companies. Some times we have seen that some product line from Germany and Switzerland has moved back to India and that is contributing to 5 - 7% of our sales. We would be happy to cater to Indian market if there is an opportunity.

From jute to textiles to chemicals, Sajjan Group has acquired a lot of new skill sets and also verticals? What is the success mantra?

For continuous success in any business, we have to follow a simple rule and that is to maintain financial discipline, stay honest, remain simple and be delegative.

January 29, 2021

January 29, 2021

Samir Somaiya, CMD, Godavari Biorefineries Ltd. spoke exclusively to Pravin Prashant, Editor, Indian Chemical News on expansion plans, revenue forecast, Capex plan, market share in Ethanol blending, R&D and sustainability. Excerpts of the interview:

What's your expansion plan for the next 2 years?
We have just completed an expansion plan in our Ethanol capacity. We have spent Rs. 70 crore and have expanded our Ethanol capacity from 200,000 liters per day to 320,000 liters per day last year and 400,000 liter per day in past few months. So, we have effectively doubled our daily capacity of Ethanol. I think in the next couple of years we would like to spend more money further expanding our Ethanol capacity and also enter into specialty chemicals based on Ethanol.  

Two years ago we put 38 million liters into the Ethanol program and in the coming year we expect to deliver 70 million liters and we would like to create an Ethanol capacity in such that it can go to 100 million liters to deliver it into Ethanol production capacity. We make chemicals that go into pharma intermediates and agro intermediates so we have lined up couples of new chemistries that we want to invest in the future so we are planning to expand our footprint in specialty chemicals as well.

I would say 90% of what we produce probably will go under Ethanol blending and 10 to 15 % of production would continue to be catered to customers of ours which we had over the last many years.

What's your revenue forecast for FY 2020-21?
We are anticipating a turnover of Rs. 1,500 crore in 2021. If you look into the past, sugar used to be a large percentage of top line mix. Going forward we anticipate sugar, Ethanol and chemicals will contribute one third each in terms of revenue. Sugar would be about Rs. 400 - 500 crore, Biofuel or Ethanol will be Rs. 400 - 500 crore and Chemicals will be Rs. 500 crore. That's how we are rebalancing our portfolio and then going to grow Chemicals and Ethanol space.  

What is Godavari Biorefineries doing so that its chemical division grows to one third?
I look at Sugarcane and agriculture as a great feedstock for food, fuels and specialties and in specialties we look at the sugar and fibers as the source. So going forward, we would further see the use of Ethanol also for chemical making specialty chemicals and bagasse also to be used making specialty chemicals which go into the market. In the past one year and coming year and a half you will see Ethanol portion expand because that’s where our focus has been and post that we would definitely see emphasis on chemistry and chemical coming out from bagasse and Ethanol.  

Are you planning to have new factories under your expansion plan?
Our current aim is to do expansion in both the current locations. We think that we have a very good base in terms of infrastructure, people and it is easier to do the ground field expansion right now. So this is how we are expecting to go forward from the logistical standpoint and from the human standpoint and this is where we will grow our business.

Are you looking for any Capex expansion in the next two years?
We would be looking at those currently under preparation but we will definitely do a Capex expansion and we would look at expansion in Ethanol and in chemistry and renewable chemistry which we are talking about.

What is your market share in Ethanol blending and how do you see the biorefineries policy of the government of India?
I think the government policy in biofuels is very good. The previous policies used to look at molasses or Ethanol as a bioproduct of the sugar industry. The current policy mixes Ethanol and sugar industry as substitutes and they give optionality to de risk the business as well as to de risk the farming sector so I think the policy is very good.

India has to look at sugarcane surplus as an asset and this policy recognises it as such. So this surplus sugarcane with the policy will start converting to Ethanol and I believe in the next couple of years we will see local Ethanol meeting almost 20% of the gasoline needs or the petrol blending needs all over the country.

I think the policy is very good and as a company Godavari Biorefineries is actually diverting more than 40% of its sugar and cane to Ethanol so we have gone almost towards the Brazilian model where companies in Brazil have and optionality towards almost 50% of its sugars where they can swing between sugar and Ethanol and this is what we have created in our company.

More than 3 billion litres have been bid and we will be around 17 million litres so market share is actually small but I would like to say we have pioneered the use of sugarcane juice and syrup for Ethanol. This is a new policy by the government of India earlier it was molasses and they have also allowed sugarcane juice and syrup and I would like to say that we have been working on one of the first few to pioneer the use of this to make Ethanol. So in that sense we have done a good job.

How big is the biorefineries blending market in India?
This coming year we should blend about 7-8% of gasoline or petrol with Ethanol and the government wants to take it to 20% that’s how big it is. The nice thing about Ethanol is it's a low carbon greenhouse gas or climate change mitigating fuel and it drives the rural economy so in terms of rupees, I think they are wanting about 300 crores litres and if you multiply with about Rs. 55 - 60 a litre.

Where do you stand viz a viz other players in the biorefineries blending market?
We would be one of the larger players. The issue is we have one Ethanol based facility and this one Ethanol based facility is at a single point I think we do 400,000 litres per day and it’s among the larger one in the country but there might be others who have 100,000 litres per day and we might have 5 or 6 of them. Our approach as a company is to go deep rather than to do a horizontal experiment. We want to make value out of that stick of cane and we want to go into the de risking approach. We would be amongst the largest.

Do you have inhouse R&D or do you have tie-ups with R&D institutions?
We have a combination of both. We have a very good research lab in New Mumbai and we do a lot of our own research with our scientist and we don’t think we have the answers for everything so we do tie-ups with education institutions with research labs and we think its partnership and collaboration which will take us forward.

Any numbers to the R&D budget which you invest?
More than numbers, it's lots of people. We have 25-30 scientists working on the R&D front and that numbers change year on year. We have accruable research which is a strong point for us. Like all chemical companies we have also launched your own hand sanitizers product called ‘Pavan’.

How has the hand sanitization market done for Godavari Biorefineries?
To be honest in the beginning it was very good but we need to develop a much better B2C marketing capabilities to succeed.

On the sustainability part are you also looking at becoming net zero at some point of time?
Currently, we are measuring our current carbon footprint. We are quite ahead already but definitely our game is to be sustainable even outside the ecosystem which is farming system and sustainability with the company. We were in fact one of the first in India to even get a million dollar to set up a cogeneration plant 20 years ago and at that time cogeneration from Bagasse was not very common in India. We got grants from the USA and to demonstrate how greenhouse gas mitigation plants can be done in the company. Our focus entirely is to be a renewable company with a low carbon footprint.

Anything specific which you are working on sustainability?
I talked about the whole emphasis on sustainable farming and that itself is a big focus on how to make farming more sustainable. I talked about simple issues like extracting potash from ash that itself creates a more circular economy and also creates a different sustainability.

Godavari Biorefineries would be completing 81 years. How do you see this complete journey?
I would love to say that we are ready for the future.

January 07, 2021

January 06, 2021

Dr. Pratap Nair, President & CEO, Ingenero Technologies (India) Limited spoke exclusively to Rahul Koul, Associate Editor, Indian Chemical News on data analytics market trends and related solutions from the company besides wide range of products offerings for decision engineering, steam management, heat integration, digital twins, anomaly detection and improvement. Excerpts of the interview:


How big is the data analytics market in India and globally, especially in the context of the chemical sector?
India is currently among the top four big data analytics markets in the world and NASSCOM has set a target of making the country one among the top three markets in the next three years. The data analytics market in India is currently valued at US $2 billion and is expected to grow at a CAGR (compounded annual growth rate) of 26 percent, reaching approximately US $16 billion by 2025, making India’s share approximately 32 percent in the overall global market, including exports.

While India’s analytics market though majorly dominated by BFSI, marketing and e-commerce sector, the chemical industry is not far behind with cumulative contribution from pharma, FMCG and energy of 22% of the total revenue generated. Globally, the data analytics market is about US $20 billion and estimated to grow to US $68 billion by 2025, up at a CAGR of 28.9%.

Role of Ingenero Technologies in providing data analytics solutions to the chemical industry?
Ingenero has been providing Advanced Analytics as a service to chemical industry manufacturers globally, since 2001, through Ingenero’s Intelligent Process Operations Guidance (IPOG). Advanced Analytics based on applying first principles fundamental analytics combined with statistical techniques like AI/ML (artificial intelligence and machine learning) to live and historical data from the manufacturing facility, is regularly used by Ingenero to provide continuous support to chemical manufacturers in the USA, Middle East, Europe and Asia Pacific, with the help of a remote team, from the technology center in Mumbai. The objective is to help improve production, efficiencies and safety while better adhering to regulatory compliances.

Automated analytics solutions that were developed over time, to execute IPOG projects, gave Ingenero a jump start to being able to successfully deploy software solutions, as part of the digitalization initiatives over the past six years. Ingenero typically deploys data Analytics solutions on a Build-Operate-Transfer model and implements both on-premise and cloud deployment versions, based upon client requirements.

Clients that are availing your data analytics solutions globally and how are they benefiting from the solutions?
Ingenero is currently in discussions with clients in India on deploying Advanced Analytics solutions as part of digitalization initiatives, most of the continuous applications have been global with companies like Chevron Phillips, SABIC, Sasol, Total, DCP, to name a few.

A facility for Long-Chain Alcohols production in Louisiana, USA was able to enhance capacity by 30% without CAPEX, improve first-pass quality by 11% and stop external tolling, through the continuous use of Ingenero’s advanced analytics on their operations data.

An Integrated chemicals company in Belgium was able to develop a strategy and execute it, using Ingenero’s corporate decision support digital twin model covering all of their facilities, thereby hiving certain businesses at Euro 110 million and growing to Euro 400 million quickly after turning profitable.

Two Ethylene facilities in the Middle East of a major US Petrochemical major were able to improve yield, plant availability, throughput and efficiency, saving US $250 mn over a five-year period, through the utilization of Ingenero’s Hybrid Digital Twin using fundamental models and Machine Learning along with remote tracking.

A midstream company in the USA, operating the largest NGL pipeline network in the USA, was able to increase profitability by 22%, using Ingenero’s Digital Twin deployed over 40 facilities, providing centralized asset visibility, allowing a systematized identification and prioritization of process requirements and optimization capabilities.

In the Indian context, who are the clients that have availed your data analytics solutions and how have they benefited?
In the Indian market, other than Cairn India, Ingenero has mainly worked on snapshot static engineering design analysis, performance improvement consulting, and troubleshooting analysis with companies like BPCL, HPCL, MRPL, Nayara, RIL, Sun Pharma, Pidilite, Vinati Organics, Jubilant Life Sciences, Aarti Chemical, Mangalam Organics, Deepak Fertilizers, etc.

Ingenero has helped minimize Ethylene losses in a process at a Petrochemical facility in India, addressing cyclic Ethylene use and batch process challenges that the manufacturer was facing through concept development and follow through cost-effective engineering and implementation, providing an annual savings of US$ 650,000. 1.5 tons per day of Ethylene loss was reduced to 100 kgs/day. A pacesetter audit for optimization of crude, overall operational philosophy, power plant operations analysis, shutdown analysis helped a 15 MMTPA Refinery in India identify 2.3 US$/bbl of potential GRM improvement.

Analysis of past operations data, F&L reports and SOPs for a 7.5 MMTPA refinery in Mumbai, helped identify 0.6% un-identified losses.
Continuous proactive operations data analysis and decision support for an Oil & Gas producer in India (150,000 BOPD oil production facility asset sites), helped enhance asset availability and achieve US$ 6.5 million savings through the determination of root causes and suggested remedies for off-spec production that were leading to quality issues and lost profit. Pinch analysis of the Phenol, Cumene and OSBL units of a Petrochemical facility in Mumbai, helped optimize utility consumption, lowering steam consumption and realizing 14 MW energy savings.

How is your key product, Intelligent Software Solution for Process Decision Excellence (I-SSPDE) helping in digital transformation?
Having worked with a few of the early adopters of the digital transformation initiative and also have seen mixed results from other initiatives in the market around us, we have learned along with our clients in the chemical process industry, that the key to success and extract benefits from digitalization initiatives is to clearly understand the business applications or use cases upfront for the Industry 4.0 implementations.

The business applications to focus on, the relevant IIoT data necessary, whom to connect with what, who all collaborate, the dashboards, the type of information and how it is processed and analyzed, where streaming data is required and where batch data is better, cloud computing vs on-premise vs hybrid, etc. are important aspects that are handled by the “Decision Engineering” process. Decision Engineering requires a coherent team with domain experts in chemical process manufacturing, first principles modelers, data science specialists and software engineers. It helps convert technology tools to solutions that directly address use cases for manufacturers, providing them with Augmented Intelligence and insights, to be able to make faster, more timely and quality decisions (whether operations, planning or scheduling) based on data rather than intuition alone.

I-SSPDE is a package of solutions for chemical process manufacturing that has Advanced Analytics algorithms at its core, carefully tailor made, with in-built intelligence, for the chemical process industry, connected to IIoT sensors, historians, databases and providing intuitive visualization of the predictions and prescriptions. It is typically deployed on a Build, Operate and Transfer mode. It is utilized to improve asset reliability, optimize operations and planning and better comply with safety, environment and sustainability parameters.

Info on Ingenero’s solution with respect to heat integration? Clients who are availing this facility?
The heat integration solution is a combination of a Digital Twin model based on first principles tuned to existing plant data, to mirror the plant behavior. This is then utilized to analyze using Pinch and other engineering analysis to see whether there are possibilities for better integration between the process and utility with respect to matching heat generation and heat consumption, to save energy usage. The analysis also includes a review of what it will cost to do the heat integration versus the savings.

Some of the clients who have availed this from Ingenero in the recent past: HPCL, Mumbai Refinery; BP Petrochemical facility in Alabama, USA; LAB facility and utility networks at Farabi Petrochemicals, Jubail, KSA; Saudi Chevron, Jubail, KSA; Deepak Phenolics, Mumbai.

How is Ingenero helping companies in steam management and clients who are availing this facility?
Steam management is a direct application and use of the Digital Twin models that optimize steam usage when viewed in conjunction with the main process performance. This has been an application utilized in most of the sites where Ingenero has provided Advanced analytics as a service or a software solution. Westlake, Lake Charles, USA; RLOC, Qatar; SABIC, KSA are cases in point.

Solutions offered by the company with respect to digital twins and clients who are availing this facility?
A Digital Twin is a digital replica of the physical manufacturing facility or the performance characteristics of the facility, whereby the behaviour of the facility or the physical facility itself can be mimicked by the computer program or visualized on the computer. The Digital twin mirrors the operation and what-if scenarios can be run offline, predicting the impact of a change, without disturbing the operation, before implementing a change in the operation. The type of Digital twin model depends on the application for which it will be used.
Ingenero specializes in Digital twin models that mimic the performance of the manufacturing facility and is able to track, predict, and prescribe, for improved Asset and equipment Reliability, Production, efficiency. These models are based on a combination of first-principles models and AI/ML models, with data from the manufacturing operations being the key input.

This has been availed by several of our clients in the USA and the Middle East, as mentioned in an earlier answer, for continuous advanced analytics applications. Cairn India uses it for continuous application and such types of models have also been used offline by Ingenero to provide engineering analysis services indicated in earlier answers, to refiners and chemical plants in India.

Ingenero’s solutions with respect to anomaly detection and improvement and clients which are availing this facility?
Automatic anomaly detection is a solution that utilizes Machine Learning models that have been trained on relevant data from the history of the equipment or sections of the manufacturing process and then used to predict the process or equipment behavior, to detect anomalous operation early. The early warning helps find and fix a problem before the problem finds you. To minimize false positives, the model has to be instilled with intelligence from fundamental models, instead of just the data.

These models are self-learning and adaptive in nature. This is a solution that Ingenero has been using internally to provide the IPOG service to several customers in the USA and the Middle East and has now deployed it as an automated solution for Chevron Phillips, Phillips 66, Westlake, to name a few.

January 04, 2021

December 29, 2020

November 21, 2020