July 29, 2025

How would you explain the emerging trends in agrochemicals in India and globally?

The Indian agrochemical industry faced several headwinds in the past three years. The industry struggled to sustain, rather several business houses showed a declining trend. Similar is the case with the global market. Severe challenges in supply and demand led to raw material price fluctuations throughout the year. Still several companies, including Indofil have shown growth and turned these problems to opportunities. It’s observed that the demand for off-patented molecules remains strong and growing year by year, along with new solutions being added to support the farming fraternity. 

Three main challenges faced by the Indian agrochemicals sector and what are the suggested solutions?  

The key challenges Indian industry faces are:  

Cash crunch across the value chain - We should look at options like channel financing via financial institutions. It helps in mitigating the short-term cash issues with minimal cost;

Supply & Demand – Indian industry is severely dependent on China supplies and looking at ongoing geopolitical issues, it’s important that we find ways to backward integrate key product lines and find solutions by coming together instead of competing; and

End to end solution for farmers – Though everyone is trying hard in this aspect however still the success is not as expected. It’s important now for the agrochemical industry to think of not only providing input chemicals, rather prepare to provide end to end solutions, from seed to harvest. It’s only possible by collaboration if all participating industries come together and offer solutions based on the strengths in a collaborative way.  

How has the performance been for Indofil in the first 9 months of FY 2024-25? Could you elaborate on the factors that contributed to this strong performance?

For Indofil, the first quarter was quite challenging because of weak demand, however in quarter 2 and 3, we revived our strategy and as a result, we could regain the momentum. Overall, for nine months, Indofil could record the desired growth on topline as well as profitability. We kept a close eye on competition and the changing environment. We were very particular on our pricing strategy, cost control measures, and balanced approach for market share gain.     

How have different product segments contributed to the overall revenue, and which segments have shown highest growth? 

Indofil is known for its fungicide portfolio. This year has been one of the best years for our fungicide portfolio and we recorded strong growth. We worked on our legacy products and with revised strategy and were able to outperform. Our journey continued for the growth in insecticide portfolio and we continue to strengthen our herbicide product line. Overall, our approach towards crop diversification and growth helped in growing our market share across the country. 

How has Indofil's diverse product range contributed to its market leadership in both agricultural and specialty chemicals?

Now, Indofil has products for all important crops and this is possible because of our continuous efforts to include new products for the last 3-5 years. Indofil has products to offer for almost all key crops in India. Similarly, our specialty division is continuously adding new product lines to support our customers. Our R&D strengths are increasing year on year and investment continues to support growth.    

 What were the primary areas of capital expenditure in 2024, and how do these investments align with Indofil’s strategic objectives? 

Indofil is continuously investing on manufacturing capabilities, by adding new equipment for volume growth, to bring efficiency and productivity enhancement. These investments are helping us to offer products at competitive prices. Our investment on agro product registration continues to ensure we strengthen our portfolio and crop diversification drive. All our Capex are planned to support our mid-long term growth strategy.    

Indofil repaid Rs. 200 crores of debt in FY24. How has this debt reduction impacted the company's financial health and future investment plans? 

Indofil is continuously working towards strengthening our cash flow situation. Our financial control measures are the key driver to pay off the debt. Indofil’ s management keeps a close eye on profitable volume growth by strengthening our cash flow situation to ensure we are ready for future investments.   

Can you outline any upcoming capital projects or expansions planned for the next fiscal year? 

As said earlier, Indofil is investing continuously in business and will continue to look for opportunities for organic and inorganic growth. 

With exports comprising around 40 - 45 per cent of revenues over the past three fiscal years, how is Indofil expanding its global footprint and entering new markets?

We are very focused on our international business growth. In the past 2-3 years, we have taken several strategic calls to expand our reach across the globe by investing in registration for new products/mixtures beyond mancozeb. We are now ready with products to offer in the Europe and Brazil market which will help us for future growth in this market. Indofil is also continuously investing to expand its innovative solution business reach across the globe. 

How is Indofil integrating sustainable solutions into its product development and operations to address environmental concerns?

Indofil is very focused towards sustainable growth. We have recently invested in hybrid power and as a result, from next year onwards our manufacturing plant will use at least 50 per cent of the power generated via wind and solar source. Similarly, our new product development team works to ensure new products or processes are eco-friendly and to help in reducing carbon footprint. We have recently received Responsible Care accreditation from Indian Chemical Council. Our Ecovadis score is also improving year on year. All our manufacturing sites are working on zero discharge operations. Our efforts towards reducing carbon emission continue by streamlining our supply chain.   

Indofil introduced insecticides like Hokori and herbicides such as Gadget, Tembofil, and Smack in 2024. How have these products impacted the company's growth?

Indofil is proud to launch these products within one year which are surely going to help the farmers to improve their productivity. These products significantly contributed to the growth this year and we have a robust marketing plan to take these products to greater heights in future. As said earlier, Indofil is committed to provide new products and solutions year on year to our customers.   

Indofil launched 'IndoLife Super Specialities' to enhance farmers' return on investments through research-based solutions. How has this initiative impacted the agricultural community? 

Our IndoLife business reached a significant mark in the past 6-7 years and surely helped the farming community with its innovative biological based products. Indofil is reviving Indolife business strategy to offer much better products and solutions with new faces in near future and new announcements will follow soon.    

What are the primary goals behind Indofil's digital transformation efforts, and how do they align with the company's overall business strategy? 

In the past three years, Indofil has significantly invested in digital transformation and it’s continued. We are channelising our actions towards paperless operation. Our several digital initiatives are going to help the organization to be more efficient and will follow the philosophy of “delivering More with Less”. These digitization efforts are bringing data transparency which is helping us to take quick and fact-based decisions. Each action and investment are aligned to our mid-long-term strategy.     

The company has received the 'Responsible Care' certification in 2024. The significance of this accreditation and the initiatives undertaken by the company to achieve it? 

Indofil is proud to share that we got Responsible Care certification in the first attempt and for all codes. Every Indofilian was involved and worked to make it happen. It also demonstrates our commitment towards sustainability. Indofil’s management is committed to provide a safe working place to all our employees and contractors. Our efforts are not limited within our own site or operation, rather we are collaborating with our customer and supplier to ensure we eliminate waste across the value chain and create an ecosystem for sustainable operation.      

Indofil aims to transition from a product-based to a solution-based company within five years. What steps were taken in 2024 towards this goal?

Indofil is always seen as a solution provider rather than just selling products. We are continuously investing in our field marketing activities by deploying our team at ground to help farmers in providing need-based solutions. We are also working to find solutions by inventing a digital tool to provide support to our farmers for soil testing, monsoon forecasting etc. Since Indian farming industry is continuously evolving, acceptance to these new technologies and solutions take more time than usual, however our government’s efforts for smart farming help the farmers fraternity to improve their productivity. Our investment in innovative solutions, by developing technical service teams, continues to provide solutions.  

July 27, 2025

Major initiatives undertaken by Galaxy Surfactants during FY 24-25 to drive growth and innovation? How have these influenced your business operations and market positioning? 

In FY 24-25, Galaxy Surfactants continued to drive growth and innovation through strategic investments in sustainability, digital transformation, and product innovation. Our focus on green chemistry and eco-friendly formulations led to the development of next-generation biodegradable specialty such as Galseer DermaGreen, Galseer Tresscon, and Galseer Flexcon, addressing the rising global demand for greener, milder and beauty care solutions. Galaxy also worked on developing sustainable technologies and has come up with products like GalEcosafe (the first one to produce in India & AMET). In Home Care solutions, we have invented technologies in the field of encapsulation of enzymes and green process for fabric softener. These innovations not only strengthened our market presence but also reinforced our commitment to regulatory compliance and environmental responsibility, making us a preferred partner for leading brands worldwide.

We also accelerated our digital transformation journey, integrating automation, AI-driven analytics, and ERP enhancements across our operations. These efforts have optimized supply chain management, improved operational efficiencies, and enabled better data-driven decision-making. Additionally, our continued investment in R&D and advanced manufacturing capabilities has allowed us to remain agile and responsive to evolving market needs, ensuring the timely delivery of high-performance specialty ingredients.

Beyond business expansion, our sustainability and talent development initiatives have played a pivotal role in reinforcing our market leadership. This year, Galaxy entered the Top 5 Club in ‘Great Place to Work’ in the chemical industry. This has strengthened our employer’s brand, helping us attract and retain top talent. Meanwhile, our enhanced ESG commitments, including waste circularity and responsible sourcing, have positioned us as a trusted and sustainable industry leader. These collective efforts have propelled the Galaxy towards long-term growth, resilience, and continued market leadership.

How did Galaxy Surfactants' revenue in FY 24-25 compare to previous years? Were there specific product lines or markets that significantly contributed to this performance?  

India, which constitutes a significant portion of our business, recorded flat performance this quarter and for the full fiscal year. This was primarily due to the lingering impact of the previous quarter’s slowdown, compounded by a more than 40 per cent rise in fatty alcohol prices from Q2 onwards, leading to a slower-than-expected recovery in the performance segment. However, we remain optimistic about growth in the coming quarters, supported by improving economic indicators and gradual market normalization.

The AMET region also experienced flat performance. While macroeconomic challenges persist, early signs of demand recovery and easing supply chain disruptions make us cautiously optimistic. We are taking proactive steps to strengthen our market presence and capture emerging opportunities as the region stabilizes.

In contrast, the Rest of the World (ROW) has been a bright spot, delivering double-digit growth this quarter and for the full fiscal year. This strong performance reflects our strategic focus on global expansion and the rising demand for premium specialties. Growth in ROW has been driven by continued momentum in Europe, APAC, and North & Latin America. This quarter, we achieved 9 per cent volume growth in ROW, with YTD volume growth at 17 per cent, led by mass specialties.

On a YTD consolidated basis, revenue has grown by 11 per cent from Rs. 3,830 crore to Rs 4,250 crore and EBITDA has grown from 498 crore to Rs. 510 crore, which is a 2.5 per cent growth. On EBITDA /MT, it is broadly in line with the performance of Rs. 19,868 vs PY 20,019/MT. 

These results reflect our continued focus on operational excellence, cost efficiency, and strategic agility, positioning us well for sustained and profitable growth. 

What percentage of revenue was allocated to R&D in FY 24-25 and how does this investment reflect your commitment to innovation? 

Galaxy remains one of the leading companies in India in the specialty chemicals space, consistently investing in R&D talent and infrastructure. Our innovation team comprises many PhDs, postgraduates, engineers, and technologists. Galaxy has recently developed a state-of-the-art BioScience Innovation capability equipped with molecular biology expertise. The Galaxy group has invested more than Rs. 150 crore in various innovation capability-building initiatives in recent years.

As a result, we are one of the leading Indian companies in our industry, with 111 approved patents and 32 patents applied for—6 of which were granted in FY 25 alone. For two consecutive years, we have won the ‘Best Innovative Ingredient’ award at the in-cosmetics global show, making Galaxy the only Indian company to achieve this accomplishment.

With such commitment, we have introduced new innovative products in areas such as mild cleansing, natural and modern preservation, DermaCare for sensitive skin, ultra-low dioxane sulfates, green chemistry-based amino acid surfactants, fabric softeners, and encapsulated enzymes. This diverse range of innovative products enables us to be the only Indian company serving various global brands in the Home Care, Personal Care, and Beauty segments. 

What were the primary areas of focus for your capital expenditures in FY 24-25? How have these investments enhanced your production capabilities or operational efficiency? 

In FY 24-25, Galaxy Surfactants strategically directed its capital expenditures towards enhancing production capabilities, expanding its global footprint, and strengthening sustainability initiatives. A significant milestone was the company’s recent strategic partnership with a global customer for Engineering, Procurement, and Construction (EPC) services. This initiative is expected to facilitate the establishment of performance surfactants and specialty ingredients plants overseas, reinforcing Galaxy’s global presence and contributing to long-term growth.

Additionally, the company continued investing in capacity expansion, particularly in specialty care ingredients catering to premium personal care and beauty formulations. These investments align with the increasing demand for superior-performance and sustainable products, enabling Galaxy to better serve its customers and meet growing market demand. Strengthening production capabilities in this segment not only drives revenue growth but also solidifies Galaxy’s position as a key player in the personal care, beauty & home care industry.

What strategies has Galaxy Surfactants employed to expand its global footprint and penetrate new markets? How have these strategies contributed to the company's growth and diversification? 

Galaxy Surfactants has actively pursued global expansion through a combination of strategic partnerships, capacity enhancements, and a customer-centric approach. One of the key initiatives in FY 24-25 was the company’s collaboration with a global customer for Engineering, Procurement, and Construction (EPC) services, which is expected to facilitate the establishment of performance surfactants and specialty ingredients plants in international markets. This move aligns with Galaxy’s vision to strengthen its global presence and cater to the growing demand for sustainable and high-performance personal care ingredients in developed markets. 

In addition to partnerships, the company has focused on market-specific product innovation to meet regional consumer preferences. Expanding its specialty care ingredient portfolio to cater to premium personal care brands has been a key differentiator, allowing Galaxy to penetrate high-growth markets in Europe, North America, and Southeast Asia. By leveraging its research and development capabilities, the company has introduced tailor-made solutions that comply with stringent global regulatory standards, ensuring relevance and competitiveness in new geographies. Galaxy has demonstrated revenue of CAGR of 9 per cent in the last 10 years and 10 per cent CAGR in Specialty Product Revenues.  

Galaxy Surfactants has been recognized for its sustainability efforts, including achieving water positivity by restoring more water to the environment than it withdraws. Could you elaborate on the strategies and projects that led to this accomplishment? 

The company’s approach is rooted in optimizing water usage, increasing recycling and reuse, and supporting large-scale water harvesting initiatives. A major milestone was its achievement of becoming net water positive, where more water is restored to the environment than withdrawn for operations. This was accomplished through improved water efficiency across manufacturing sites, investments in advanced water treatment technologies, and process innovations that minimize water consumption.

One of the key initiatives driving this achievement is the company’s focus on rainwater harvesting and groundwater recharge projects in water-stressed regions. Galaxy has partnered with local communities and NGOs to develop watershed management programs, ensuring long-term water availability for both industrial and agricultural use. Additionally, it has implemented closed-loop water recycling systems within its production facilities, significantly reducing freshwater dependency. By adopting circular water management principles, Galaxy has not only enhanced operational sustainability but also contributed to local water security.

This effort has resulted in Galaxy being 1.4X water positive consistently for the past three years. In addition, Galaxy is actively working towards transitioning all its operations to run on renewable energy sources. We have achieved 27.76 per cent renewable energy usage in India, and 20.10 per cent across our global operations. Our goal is to reach 75 per cent renewable energy usage by 2030.

Your company received the Gold Innovation Award at HPCI India for the ingredient Galseer Flexcon. Can you share the development process and the unique benefits this product offers to consumers? 

The ingredient was developed through extensive R&D efforts aimed at addressing key challenges in the personal care industry, such as achieving high-performance conditioning while maintaining environmental sustainability. Galaxy’s innovation team worked rigorously to formulate a solution that offers enhanced sensory benefits, superior conditioning, and improved formulation stability—all while aligning with the global shift towards eco-friendly and biodegradable ingredients.

Galseer Flexcon stands out due to its multifunctionality, catering to both hair and skin care applications. It provides deep conditioning, reduces frizz, and enhances softness without the use of traditional silicones, which are often criticized for their environmental impact. The product has been designed to seamlessly integrate into various formulations, offering formulators flexibility while meeting evolving consumer demands for cleaner, more responsible beauty solutions.

Key focus areas of Galaxy Surfactants' CSR policy, specifically regarding projects related to water conservation, women's empowerment, education, and healthcare? 

Galaxy Surfactants' CSR policy focuses on six key areas: health and hygiene, women's empowerment, education, environmental protection, community development, and disaster relief. Under Aarogya Vardheeni, the company distributed maternal and child health kits, organized blood donation camps, and provided medical support for underprivileged children. The Stree Unnati initiative promoted menstrual hygiene awareness and skill development for women, while Gyan Sanjeevani supported education in underprivileged areas in Maharashtra and Gujarat through study material distribution, vocational training, and building school infrastructure.

On the environmental front, the Paryavaran Suraksha initiative includes waste management support, tree plantation drives, and cattle feed assistance. Galaxy is proud to have planted and maintained 2, 09,000 trees as of March 2025 and is working with a vision to plant an additional 3, 00,000 trees by 2030, taking the cumulative plantation target to 5, 00,000 trees. 

Rural development efforts under Samajeek Utthaan included building water storage facilities and school infrastructure, benefiting communities in Gujarat and Maharashtra. Additionally, Aapda Rahat focused on disaster relief, aiding flood-affected families in Ankleshwar and Bharuch. These initiatives reinforce Galaxys’ commitment to sustainable and inclusive growth

How does the company plan to advance its sustainability agenda across various operations?

Galaxy remains committed to driving sustainable growth through continuous innovation, operational excellence, and responsible environmental practices. Looking ahead, the company aims to enhance its green chemistry, bioscience-based portfolio by increasing the share of biodegradable and bio-based ingredients. Strengthening its ESG commitments, Galaxy plans to achieve net water positivity, further reduce carbon emissions, and expand its renewable energy usage.  

The specialty chemicals industry is witnessing strong growth, driven by increasing demand for sustainable and high-performance ingredients across personal care, home care, and beauty applications. With regulatory bodies tightening environmental norms, the shift towards green surfactants and specialty care ingredients is accelerating. Companies like Galaxy are well-positioned to capitalise on this trend by leveraging advanced research, digitally advanced supply chain capabilities, and a strong commitment to sustainability.           

July 26, 2025

What strategic initiatives did Shiva Engineering Services (SES) undertake in FY 2024-25 to enhance its position in the Engineering, Procurement, and Construction (EPC) services? 

Over the last 15 years, we have built a solid foundation at SES—not just with our clients, but also with a strong vendor network that plays a big role in smooth EPC execution. In FY 2024-25, we focused on taking that further. 

One of the big moves this year was starting collaborations with technology partners who have their own proprietary technologies. The idea is simple: while they bring the technology, we come in as the turnkey EPC partner, delivering the full project from concept to commissioning. This approach is helping us tap into new and growing sectors like biofuels, specialty chemicals, and circular economy projects. 

We also spent time strengthening our vendor systems. We have begun a formal prequalification process that uses data from past performance to help us make more informed and timely decisions. That’s been a big support in improving procurement speed and reliability. 

Alongside this, we’ve been improving our logistics and execution models so we can deliver projects faster and more efficiently. These steps are part of our larger goal to be more agile, bring added value to our clients, and continue building trust through reliable, end-to-end EPC solutions. 

SES operates across various sectors, including Process Chemicals, Flavors & Fragrances, Consumer Goods, Low Carbon Fuels, Circular Economy, Petrochemicals, Polymers, Engineering Plastics and Masterbatch, Industrial Facility, and GMP Facility. How does this diversification contribute to the company's financial stability and growth? 

When we started, our very first project was quite simple developing as-built P&IDs for a specialty chemical plant. Since then, we’ve come a long way. Today, we are handling large-scale greenfield Capex projects across multiple industries. This journey has been possible because we kept expanding our domain knowledge and project experience along the way. 

Diversifying into various sectors has been one of our core strengths. It’s given us a broader platform to operate from and helped us build cross-domain expertise, which adds a lot of value in both design and execution. From a financial standpoint, this diversification helps us maintain stability. It also shields us from sector-specific risks, which is important in today's ever-changing market landscape. 

How has the overall performance been for SES in FY 24-25 in terms of number of projects bagged and what's the total value and expectations from FY 25-26? 

FY 2024-25 has been a very successful year for SES. We kicked off the year by delivering a large-scale greenfield project for a leading specialty chemicals client, an important milestone that set the tone for the months ahead. 

Following this, we secured multiple new projects across diverse sectors, including ink manufacturing, recycling, specialty chemicals, flavors & fragrance, construction chemicals, and renewable fuels. It’s been encouraging to see strong growth not just in terms of business volume, but also in the overall maturity and capabilities of our organization. 

This year has also validated some of our strategic bets, especially our focus on long-term partnerships with technology providers. These associations are already opening new doors, and we expect them to give us a strong competitive edge in the years ahead. 

Looking forward to FY 25-26, we are aiming to further scale up, both in terms of project size and geographical reach. We are actively planning to expand our operations beyond India, using a lean execution model that allows us to remain agile and cost-effective while serving global clients. Overall, we’re optimistic and confident about continuing this growth trajectory. 

The company’s revenue performance during FY 24-25 with key growth metrics and expectations from the upcoming fiscal year i.e. FY 25-26? What factors would contribute to continuing the growth momentum? 

FY 24-25 has been one of the most promising years for SES in terms of revenue growth and business expansion. We’ve seen a healthy volume of projects, from greenfield Capex projects across sectors like recycling and renewable fuels. These sectors not only brought in new business but also strengthened our overall capability. Another key contributor to this year’s performance was our ability to take on larger, more complex projects end-to-end from basic and detailed engineering to procurement and construction. This full-scope delivery helped us create more value per project, which directly translated into better topline performance. 

Looking ahead to FY 25-26, we are expecting continued growth, supported by a well-focused initiative. First, our long-term collaborations with technology licensors will help us tap into projects where technology plus EPC delivery is expected. Second, we are investing in digital tools, lean execution models, and expanding outside India to serve global clients in a more agile way. Our team structure is also evolving to support larger-scale project delivery, and we’re building internal capabilities around cost optimization, faster execution, and quality control, all of which will play a big role in sustaining momentum. 

How does SES collaborate with clients to integrate R&D efforts into the design and development of specialty chemical plants? 

We collaborate closely with our clients from the early stages, often engaging with their R&D and pilot plant teams to understand the chemistry, process sensitivities, and desired outcomes. Our process engineering team has deep experience in scale-up projects, whether it's from lab to pilot scale or pilot to commercial production. 

We have successfully delivered multiple such projects where scale-up was a key requirement. In each case, our involvement included process simulation, scaled-up mass and energy balances, utility planning, and eventually translating those into a detailed engineering package that supports safe, efficient, and cost-effective execution. 

What sets us apart is that we don’t just stop at design. We support clients all the way—from process design to equipment sizing, material compatibility reviews, HAZOP studies, layout development, and even procurement support and construction planning. This end-to-end involvement ensures that the transition from R&D to commercial production is seamless and future ready. In short, SES becomes a true partner in turning breakthrough formulations into scalable, operational realities. 

Could you elaborate on the major capital investments SES made in FY 24-25 and their anticipated impact on the company's growth? 

In FY 24-25, we made some focused capital investments that are aligned with our long-term vision. A large part of that went into strengthening our core engineering capabilities investing in advanced design software, simulation tools, and improving our digital infrastructure to ensure faster, more accurate project delivery. 

We also put significant effort into building our in-house capabilities to take on full-scope EPC projects. This includes enhancing our construction management tools, procurement systems, and project tracking mechanisms, so we’re well-equipped to deliver turnkey projects with greater control and efficiency. 

Another key area of investment was talent. We have brought in experienced professionals in critical areas and initiated specialized training programs to align our team with the evolving demands of EPC projects. Additionally, as we prepare to expand our footprint outside India, we have started developing a lean execution model and building strategic partnerships in target regions. These steps are setting the foundation for global operations in the near future. 

All these investments are aimed at one goal: positioning SES for sustainable growth. We want to be a future-ready EPC partner, known not just for engineering excellence but also for agility, global reach, and long-term value creation. 

Could you share insights into SES's upcoming projects and strategic focus areas in the near future? 

In the near future, we are focusing on growing the number of EPC projects we take on, while continuing to support our clients with EPCM services. We have seen how delivering complete, end-to-end solutions from basic engineering all the way to construction and commissioning can really make a difference, and we’re building on that momentum. 

A big part of our strategy is moving towards greener and more sustainable sectors. We are already involved in several projects related to renewable fuels, biogas, chemical recycling, and other circular economy initiatives. These projects often involve both technical complexity and careful execution, and that’s where our experience and integrated approach come in handy. Right now, we are working on multiple renewable fuel and recycling projects. We are also seeing growing interest in areas like sustainable chemical manufacturing and solvent recovery systems. 

The company was awarded an EPCM contract for a specialty chemicals multipurpose plant near Bharuch, involving operations like hydrogenation, bromination, chlorination, and nitration, with an investment of approximately Rs. 230 crore. Could you provide details on SES's specific contributions to this project? 

Our involvement began at the concept development stage, where we created a detailed site master plan. This included planning for process areas, utility blocks, tank farms, ETP, storage facilities, admin buildings, and internal road networks—designed to optimize space, ensure safe man and material movement, and enable future scalability. Early-stage planning like this not only supports operational efficiency but also helps reduce overall Capex. 

Once the concept was locked, we delivered the Basic Engineering Package along with cost estimation to help the client firm up their investment decision. From there, we moved into full-scope detailed engineering covering civil & structural, equipment design, piping, electrical, instrumentation & controls, fire & safety systems, and more. Our team also supported the client with procurement assistance, vendor integration, and on-ground construction management, acting as a single-point EPCM partner. Overall, SES acted as a one-stop solution for the entire project from concept to construction with a strong focus on safety, timelines, and smooth execution. 

How has the company contributed to advancing the circular economy, and what specific sustainability projects were implemented in 2024?  

At SES, we have been actively aligning ourselves with the global shift towards sustainability and the circular economy. In 2024, we took concrete steps by expanding our project portfolio in this space. We’ve been awarded several recycling projects covering areas like batteries, textiles, and other critical waste streams. These are emerging markets, and our aim is to become a leading EPC partner for clients in these sectors. 

Alongside recycling, we’re also focusing strongly on renewable fuels. We’ve delivered engineering solutions for multiple projects in Compressed Biogas (CBG), green ethanol, and green methanol—both in India and internationally. Our scope in these projects varies from FEED package development to detailed engineering and modular designs for ease of execution. 

How does Engineering Services help with advanced tech integration in greenfield chemical projects? 

We have had the opportunity to work on several greenfield projects where integrating client-owned or partner-provided technologies was a key requirement. Whether the technology is developed in-house or licensed from a third party, our role is to ensure it can be successfully scaled and implemented into a commercially viable plant. 

We typically start with thorough understanding of the process and, wherever needed, running simulations to validate its performance under various operational parameters. When the technology is at a lab or pilot stage, our team supports the scale-up through detailed mass and energy balances, equipment sizing, and utility requirement estimation. Over the years, we have delivered multiple such projects taking processes from lab to pilot, and pilot to commercial scale, which has given us valuable insight into the complexities and nuances of such transitions. 

July 24, 2025

How would you explain the emerging trends in the chlor-alkali business in India and globally? And how prepared Epigral is to tap the growth opportunity?   

We see strong potential in the chlor-alkali industry due to its applications across various sectors that are directly linked to daily consumption. Both globally and in India, we anticipate that the demand for chlor-alkali products will remain robust and gradually increase each year. Epigral, with its capacity for caustic soda, is well-positioned to meet this growing demand.  

Additionally, we have evaluated various downstream co-products, such as chlorine and hydrogen, to ensure we operate as an integrated player in the industry. Epigral has strategically chosen co-products that we can consume in our operations, which has improved our efficiency. By selecting import-substitute products that utilize these co-products, we have also contributed to the nation by reducing dependency on imports, aligning with the Government of India's initiatives of Atmanirbhar Bharat and Make in India. 

What are the three main challenges that the Indian chlor-alkali sector is facing and what could be the suggested solutions to overcome these challenges, according to you? 

In India, the chlor-alkali or caustic soda industry faces the challenge of producing chlorine alongside caustic soda. Instead of viewing this as a setback, we identified a range of products that utilize chlorine, which has strengthened our profit and loss statement as well as our balance sheet. By turning this challenge into an opportunity, we have enhanced our company's performance. Another significant challenge for the caustic soda industry is the high cost of electricity required for production. To address this, we have installed our own power plant, which has improved our operations and overall efficiency, benefiting the company. 

Could you elaborate on the strategic initiatives Epigral undertook in 2024 to enhance its market position and operational efficiency? 

We periodically evaluate our strategic initiatives and continuously evolve better. Specifically, in 2024, we commissioned an additional capacity of CPVC Resin of 45,000 TPA, which increased our total capacity to 75,000 TPAs, the world's largest capacity in a specific location. Additionally, we commissioned the CPVC Compound facility, and hence, we will now cater both resin and compound to pipe manufacturers based on their needs. During the year, we have set up a pilot plant for making pipes at our facility to provide consistent quality and be a reliable partner. In the last fiscal year, Epigral further announced the expansion of our CPVC Resin and epichlorohydrin capacity; we are doubling both capacities, considering the growth opportunities we see for these products.  

Epigral has raised funds for the company from the capital market through QIP, where institutional investors participated and showed confidence in the company's vision. With these funds, we strengthened our balance sheet and it improved our rating from Crisil AA— to Crisil AA. 

The company reported a 37 per cent revenue growth in the first nine months of FY2025, driven by a 15 per cent increase in sales volume from high-value derivative and specialty products. What strategies contributed to this significant growth? 

Since the financial year 2018-19, we, at Epigral, have made a strategic decision to diversify our business by leveraging chlorine and hydrogen as co-products. As part of this strategy, we have ventured into the production of CPVC, epichlorohydrin, chloromethanes, and hydrogen peroxide. This diversification has enabled us to serve various industries domestically while providing high-quality products that substitute for imports. As a result, the company has become more resilient compared to others in the industry during periods of economic slowdown. This strategic shift has significantly contributed to the company’s overall performance. 

Key projects being rolled out by Epigral to achieve their growth in coming years? Can you share an update on the progress so far? 

This year, various capital expenditures (capex) we undertook in the past have begun to yield results and will continue to contribute to the coming years. In FY2024, we successfully commissioned a CPVC Resin plant with a capacity of 45,000 tons per annum (TPA), a CPVC Compound facility with a capacity of 35,000 TPA, and a chlorotoluenes value chain facility. These expansions, along with other capacities commissioned in previous years, will positively impact on our business performance this year and next year. 

We have also announced plans to increase our CPVC Resin and epichlorohydrin capacities for further growth. These additional capacities are expected to be commissioned in FY2027, and we anticipate they will start contributing from that time onwards, with an expectation to reach optimal performance by FY2028. For future growth, we have already acquired around 100 acres of land close to our current plant. Our focus will be on developing new chemistries that will drive the company’s growth. 

As a growth-focused company, we will carefully plan and allocate our capital expenditure to ensure robust growth in the coming years. 

Could you share an overview of the major Capex projects Epigral has undertaken recently, including their objectives and expected timelines? 

Recently, the company announced plans to expand its capacity for CPVC Resin by 75,000 TPA and epichlorohydrin by 50,000 TPA. These expansions are driven by anticipated growth in demand both in India and globally. Additionally, they will enhance the captive consumption of chlorine and hydrogen, further strengthening our integrated complex. The projects are expected to be commissioned in the first half of FY2027. With this expansion, we will become the largest manufacturer of epichlorohydrin in India and the largest manufacturer of CPVC Resin in the world. 

How has the commissioning of the additional 45,000 TPA CPVC Resin capacity in April 2024 impacted your production capabilities and market reach? 

It has allowed us to produce more to meet the domestic demand for CPVC Resin and increase our presence and market share among various customers. As the demand further increases we are ready with the capacity to meet the same. 

What has been the effect of the new CPVC compound facility commissioned in June 2024 on your product offerings and customer satisfaction? 

The CPVC Compound facility has allowed us to serve all types of CPVC pipe manufacturers. Previously, we could only cater to selected manufacturers, but now, thanks to our presence in the compound, we can fulfill the needs of all pipe manufacturers. Additionally, we have recently obtained NSF certification for our CPVC resin and compound, confirming that our products are suitable for drinking water purposes. This underscores our commitment to quality and further strengthens our brand. 

With the inauguration of your first R&D Centre in Ahmedabad in November 2023, what key projects or innovations have emerged, and how do they align with Epigral's long-term goals? 

The R&D center plays a crucial role in guiding integrated chemical manufacturers like Epigral. Our R&D center is working further downstream of the chlorotoluenes value chain that we recently commissioned. In addition, the center is focused on improving the processes for our existing products and enhancing overall efficiency. The team is also engaged in developing new molecules for the specialty business. 

What digital transformation/automation initiatives has Epigral implemented in 2024 to enhance operational efficiency, supply chain management, and customer engagement? 

Improving operational efficiency is an ongoing process at Epigral, and we have implemented several enhancements at the plant level. These efforts are evident in our operating performance and are directly reflected in our profit and loss statements. The company has deployed various tools and digitized multiple processes to monitor operations within the plant. With our state-of-the-art facility, we have focused on enhancing safety, which directly contributes to continuous improvements in performance and efficiency. 

The commissioning of an 18.34 MW Wind Solar Hybrid Power Plant in Q1 FY24 showcases Epigral's commitment to sustainability. How has this initiative influenced your environmental footprint and operational costs? 

At Epigral, we are continually working to improve our footprint and protect the local environment surrounding our production plant. We commissioned an 18.34 MW wind and solar power plant over a year ago, and as a result, approximately 8 per cent of our power requirements are now met through green energy. This initiative has not only contributed to environmental preservation but has also been cost-effective, as it is cheaper than conventional grid electricity. 

Your current phase of expansion/diversification is coming to its completion in 2027. What is the strategy for the next phase of expansion/diversification? Are you looking at new and emerging segments? 

As a leading integrated chemical company, we are continuously researching various formulations that are feasible for the Indian market. Epigral, being a domestic-focused company, is looking at the growing demand for qualitative products for domestic consumption and considering the increase in household spending power. We are evaluating various projects where the demand for such products is going to increase substantially in the long term. 

Where do you want to see Epigral in 2032?  

In the long term, Epigral aims to expand its product portfolio to serve other industrial segments. By 2032, we want to be recognized as the leading integrated multi product chemical player globally, allowing us to add value to our stakeholders.

July 23, 2025

Dhanuka Agritech Limited with more than 321 registrations including Herbicides, Insecticides, Fungicides and Plant Growth Regulators /Bio- Stimulants and with over 330 active SKUs has one of the most extensive market penetration in agri-input industry. Dr R G Agarwal, Chairman Emeritus, Dhanuka Agritech talks about the emerging scenario of agrochemicals as well as his company’s future plan: 

How has the overall performance of Dhanuka Agritech been in 2024 and what are your expectations from 2025?  

Dhanuka Agritech Limited has been progressing well beyond its expectations. During 2024, the annual turnover of Dhanuka Agritech increased by about 17 per cent, from Rs. 1,758 crore to around Rs. 2,035 crore which was more than the expected target. It is imperative that such a market response speaks about its superior efficacy and popularity among the farmers. During 2025, Dhanuka is expected to reach the figure of around Rs. 2,500 crores due to the widening of our product portfolio with exclusive solutions developed in coordination with Japanese companies. 

Given the current geopolitical scenario and tariff war, how would you explain the emerging scenario of agrochemicals in India?  

The recent imposition of a 26 per cent discount tariff by the United States on Indian imports has significantly increased the cost of Indian agrochemical exports to the US. This move could reduce demand for these products in the short term. The same has been deferred by the US for 3 months.   

However, despite the hike in tariff, it is 26 per cent for India but it remains lower than that of major competing countries such as China, where the total tariff stands at 54 per cent and has been further increased to 225 per cent.

In comparison, the customs duty imposed on other countries like Vietnam (46 per cent), and Bangladesh (37 per cent) are still higher than India’s. This scenario could provide Indian agrochemical companies with a relative advantage in the US market, as Indian supplies would be subject to lower customs duties. If Indian companies can maintain competitive pricing strategies, they could significantly benefit from this opportunity. 

However, the imposition of higher tariffs on Chinese agrochemicals in the US may lead Chinese firms to dump their excess supply to other markets at reduced prices. This could intensify competition for Indian exporters in non-US markets. We must adopt a wait-and-watch approach to assess how the situation evolves.  

The trend of diversifying supply chains away from existing core manufacturing markets, influenced by geopolitical factors, could present India as a preferred destination for agrochemical manufacturing. The conflict in regions like Ukraine has disrupted food supplies in the European Union, leading these nations to turn to India and other regions for their agricultural needs, potentially boosting Indian agrochemical exports to the EU.    

Your recent acquisition of fungicides like Iprovalicarb and Triadimenol from Bayer AG marks a significant step into global markets. What inspired this move, and how do you expect it to impact Dhanuka’s growth trajectory? 

Dhanuka Agritech has been a strong player in the Indian agrochemical market for more than four decades. This takeover of two new molecules from the agrochemical giant Bayer AG will enrich Dhanuka’s portfolio. Additionally, it will also strategically serve to provide a vaulting platform to ingress into the markets of over 20 countries across Latin America, Europe, the Middle East, Africa, and Asia, including India. This will result in the transition of these products from a domestic angle to a global outlook. Our company was not a player in the international market, but with the acquisition of these two products, it will become easier for our company to export other pesticides to these markets. 

Dhanuka anticipates a substantial increase in its topline product solutions. In 2023, these two products generated approximately Rs. 220 crore in revenue.Dhanuka aims at a 12-15 per cent EBITDA margin following the acquisition of these molecules thereby, improving the overall profitability. We project the revenue generation in India to commence by the first quarter of FY26, with global operations scaling up by the fourth quarter. Our team is completing the formalities of documentation in the countries for the transfer of the registration and brand ownership from Bayer to Dhanuka’s name.  

What is Dhanuka’s overall expansion plan for 2025-30?  

In the coming years, Dhanuka Agritech plans to grow its business by focusing on sustainability by increasing the development and promotion of sustainable agricultural solutions, such as biopesticides, biostimulants, and other eco-friendly green molecules. The company’s strategies for developing consortia of pesticides and biopesticides would not only increase the broad-spectrum efficacy but also provide a means for resistance management against pests thereby providing sustainability to commercial agriculture as well as organic farming. We believe that organic pesticides alone may not be successful on a large scale. A combination of organic and inorganic pesticides is likely to be the roadmap for the future. 

We also plan to expand into new international markets, apart from where we already hold Bayer registration, and also for our other products. At our technical plant in Dahej, we are manufacturing Bifenthrin Technical with over 98 per cent purity and plan to register this product in multiple countries. Additionally, we aim to develop tailored products and strategies to meet the specific needs and requirements of different countries, regions, and crops. 

We are exploring strategic acquisitions and partnerships to enhance product offerings, gain access to new markets, and strengthen the company's competitive position in the industry. We are also in negotiations with various international companies for the contract manufacturing of various intermediates. 

With plans to expand into over 20 countries, what strategies are you employing to ensure Dhanuka stands out in the competitive international agrochemical market? 

Dhanuka has introduced a range of new pesticides, including insecticides, fungicides, herbicides, and microbial fertilizers. While Iprovalicarb and Triadimenol will provide a strong initial entry, we are continuously exploring opportunities to widen the product portfolio of the company, introduce novel consortia of chemicals and or biologicals, and develop new formulations relevant to the international markets. We will conduct thorough market research to understand the specific crop protection challenges and farmer needs in each target country and offer tailored products accordingly.  

We plan to explore and introduce more sustainable and environmentally friendly agrochemical solutions, aligning with the growing global emphasis on green agriculture. We will penetrate new geographical markets domestically and internationally to capture a larger customer base and capitalize on emerging opportunities in agriculture. 

From drones to precision agriculture tools, technology is reshaping farming. How is Dhanuka leveraging these advancements to empower farmers and enhance productivity? 

To promote the evaluation, awareness, and dissemination of new and proven advanced technologies in the remotest villages of the country, Dhanuka is forging collaborations with public institutions. By leveraging the resources and expertise of both partners, this Public-Private Partnership (PPP) approach aims to contribute to a more vibrant and sustainable agricultural ecosystem in India. 

As part of this initiative, Dhanuka has already signed a Memorandum of Understanding (MoU) with ICAR and has begun working with various stakeholders, including agricultural universities, ICAR research institutions, and Krishi Vigyan Kendras (KVKs), to transfer new technologies to farmers. We have signed MoUs with 15 agricultural universities, fostering mutual support. In addition to conducting live demonstrations, training sessions, and extension activities, we are also sponsoring scholarships and participating in student training programs furthering our shared commitment to agricultural development. 

With increasing pressure to adopt eco-friendly practices, how is Dhanuka balancing profitability with sustainable innovation, such as your partnerships with Japanese firms for green chemistry? 

Dhanuka Agritech has adapted to changing market conditions. It envisages its industry roadmap to reach consumer preferences by focusing on research and development to create innovative products tailored to meet the demands of modern agriculture. We have expanded our product range to include sustainable and eco-friendly biological solutions with 6 different categories of biopesticides, biostimulants, and PGRs in response to growing consumer interest. Further, we are marketing various digital technologies tools including automatic weather stations, and precision sensors to monitor the irrigation requirement, nutrients, etc. Dhanuka also has invested in agri-drone manufacturer IoTechWorld Avigation for standardization of crop-specific SOPs for precise application of smart farming solutions, helping farmers increase efficiency and productivity. 

Dhanuka has a reputation for supporting Indian farmers. Can you share a specific initiative—like the Dhanuka Agritech Research and Technology Centre (DART)—and its impact on smallholder farmers? 

Dhanuka has always been a pioneer in the sector of agrochemicals and always strives to provide innovative and novel product solutions to farmers. We are also engaged in trial demonstrations to have a comparative study between the framer practice and Dhanuka’s technology. One of the demonstration trials was conducted by Dhanuka for the production of groundnut using its novel product solutions at PDKV (Punjab Rao Deshmukh Krishi Vidyapeeth), Akola. In the demonstration plot, an 81 per cent yield increase in the groundnut was attributed to Dhanuka’s agritechnology. This enhancement resulted from a combination of factors including higher pod count per plant, increased shelling percentage, heavier (1000 kernel) test weight, and a premium of Rs. 1,000 per quintal in the market.  

The increase in productivity of groundnuts because of the application of Dhanuka’s product solutions following GAPs was duly certified by PDKV, Akola. Such demonstrations encourage farmers to follow GAPs to enhance their production and productivity as one of the most important principles of extension is “Seeing is Believing”. One of the key interventions was seed treatment with Vitavax Power, which prevented early-stage plant mortality. As a result, the increased plant population contributed significantly to the overall yield improvement. 

You have been a pioneer in R&D. What new agrochemical products Dhanuka launched in 2024 and what are in the pipeline for 2025?  

In 2024, we launched Lanevo, the broad-spectrum protection against sucking & chewing insect-pest together; Purge, a herbicide developed in collaboration with Nissan Chemicals, Japan for the Soyabean crop; Mycore Super, an AMF with 100 per cent endomycorrhiza that establishes a faster symbiotic relationship with the roots and facilitates better nutrient & water uptake by the crops. We also launched Miyako, a Cyenopyrafen 30 per cent SC (acaricide) having control on all types and all stages of mites; and Roxa, a pre-emergent herbicide, designed to control resistant Phalaris minor in wheat.  

The upcoming products in the pipeline for 2025 includeDinkar, a weedicide; Melody Duo, a fungicide acquired from Bayer; and Melody Compact Fungicide acquired from Bayer. 

What do you see as the biggest challenges facing the agrochemical industry in the next decade, and how is Dhanuka preparing to address them? 

The major challenge that looms over the agrochemical industry in the next decade is the large-scale prevalence of parallel grey market and spurious agrochemicals in the market.  

Dhanuka has taken various steps to address this menace. We have signed a comprehensive MoU with ICAR, marking a significant milestone in our collaborative efforts to strengthen research and extension activities aimed at benefiting farmers across the country. By leveraging the collective resources and expertise of both organizations, we are poised to make substantial advancements in agricultural practices and contribute to the welfare of farmers. We have made video film, and Do’s and Don’t’s posters for the farmers' awareness to purchase all the agri inputs after scanning through the QR code against original bills. 

We appreciate the proactive measures taken by the Ministry of Agriculture in canceling the registrations and licenses of approximately 7,000 companies that failed to comply with the KYC requirements prescribed by the CIB&RC. The remaining 2,600 companies are now required to undergo the next round of KYC, which includes providing comprehensive details of their manufacturing units, infrastructure, machinery, laboratories, instruments, manpower, production capacity, and more. 

We regularly work with various state and central agriculture departments on multiple reforms in the sector. The new Integrated Pesticide Management System (IPMS) has been finalized with active contributions from the industry, in which our company is a participating member. However, the system has not yet been launched but it should be launched at the earliest possible to ensure transparency and efficiency. 

Pesticides play a critical role in safeguarding agricultural output and should be used judiciously, strictly following recommended guidelines. Our company has deliberately exited from the production of red triangle-labeled products and is committed to using only safe molecules.

July 20, 2025

With over 100 products supplied to more than 1,100 customers in 60 countries, Aarti Industries has earned trust by consistently delivering value-added, cost-effective solutions. Suyog Kotecha, CEO, Aarti Industries talks about the overall growth strategy of the company…  

What were the primary contributors to Aarti Industries Limited (AIL's) revenue in FY 2024-25, and how did different segments perform relative to expectations? 

FY25 remained a year where we reaped the benefits of staying the course on our core philosophy: chemistry-led value creation.  AIL achieved a consolidated revenue of Rs. 8,046 crore in FY24-25, marking a 15 per cent year-over-year growth.  Our performance was underpinned by volume-led growth across our diversified product segments, despite the volatility in global pricing.

Agrochemical intermediates remained under pressure, but the real traction came from performance chemicals and polymer additives, where our backward integration and customer stickiness helped us outperform market expectations.

We witnessed early signs of recovery in demand for dyes, pigments, and pharma intermediates, but the pricing remained subdued. Another major contributor to our growth was the increase in the volumes of Energy applications, which are still in the market development phase. AIL’s Energy Business achieved strong volume growth, driven by expanded market reach across the US, Europe, and India. Thus, the diversified product mix across end-markets is a testimony to the resilience we’ve built into our portfolio, which supports our growth.   

AIL reported a 15 per cent increase in revenue in FY25, totalling Rs 8,046 crore. What were the primary drivers behind this growth? 

The 15 per cent revenue growth in FY25 was primarily driven by volume and wasn't incidental but intentional. We placed a sharp focus on capacity utilisation, commercialising key projects and working closely with customers to deliver at scale. The commissioning of new capacities in our Nitrotoluene and Ethylation chains, coupled with consistent execution and scaling up of volumes across various value chains, including specific products such as MMA, enabled us to tap into latent demand.  Additionally, the commissioning of new projects and a focus on high-value specialty chemicals contributed to the top-line growth. The fact that we achieved revenue growth amid global disruptions shows the strength of our integrated, future-ready model. 

Despite economic headwinds, AIL maintained its capital expenditure plans of investing a total of Rs. 3,000 crores in new chemical value chains and high-potential products. What areas received the most investment, and what returns are anticipated? 

Capex at AIL is not just a number, but a roadmap to the future. A large part of Rs. 3,000 crore has already been invested over the last few years, directed towards developing new chemical value chains in Nitrotoluene, Chlorotoluene, and newer Ethylation platforms, aligned with growth trends. Our capital expenditure (Capex) for FY26 is expected to be below Rs. 1,000 crore. A pilot plant at Jhagadia (the new greenfield site) has already begun operations, while the multipurpose and calcium chloride plants are expected to be commissioned by Q3 FY26. However, significant volume contributions from these assets are anticipated from FY27 onward, post-stabilisation and ramp-up. These strategic investments aim to enhance our product portfolio and cater to the growing demand for specialty chemicals. The anticipated returns include increased market share, improved margins, and strengthened global partnerships. 

AIL earmarked about Rs. 1,800 crore for capital expenditures in FY25. What are the key projects or areas receiving these investments? How do these capital investments align with AIL's long-term growth objectives and market expansion plans? 

The Capex in FY25 was approximately Rs. 1,372 crores. This capital expenditure was channelled into key projects that bridge current capabilities with future aspirations, from piloting high-value products at Jhagadia (the new green field site) to strengthening our Chlorotoluene value and advanced intermediates platforms. These investments align with our vision to be a “Global Partner of Choice” with a differentiated portfolio. These investments future-proof our manufacturing backbone and reinforce our position in the global supply chain.  

AIL planned to complete several projects by 2024, including the third long-term contract unit at Jhagadia and the NCB capacity expansion at Vapi. What is the current status of these projects, and how will they impact AIL's production capabilities? 

Both the third long-term contract unit at Jhagadia and the NCB capacity expansion at Vapi have been successfully commissioned. The Jhagadia unit enhances AIL’s ability to fulfil long-term supply agreements, while the NCB expansion increases production capacity from 75 KTPA to 108 KTPA, supporting growth in downstream products. 

What specific upgrades were made to the acid unit at Vapi, and how do they contribute to operational efficiency and sustainability? 

The acid unit at Vapi underwent a significant upgrade, focusing on energy recovery, emission control, and process intensification. With Phase I complete, we have already seen marked improvements in emergency efficiency and a reduction in emissions that contribute to AIL’s sustainability goals. On the one hand, this reflects our principles that operational efficiency and sustainability are not mutually exclusive, but rather interlinked. Our recognition on the CDP A list for both climate and water security reflects the measurable progress we have made in this direction. The outcome is not just lower cost but a future-proof operation aligned with the global expectations.   

Exports showed sequential growth in 2024. Which international markets or products significantly contributed to this trend? 

Export revenue in FY25 increased by approximately 21 per cent to Rs. 4,425 crore, with a sequential rise led by robust demand in the US and Europe especially for specialty chemicals and advanced intermediates. Customers worldwide are increasingly seeking resilient, compliant, and agile partners, and our integrated model is the ideal fit. We have also expanded commercial presence in newer regions to build pipeline diversity.  

AIL's near-term emission reduction targets have been validated by the Science-Based Targets initiative (SBTi). What specific strategies are in place to achieve these targets?  

SBTi validations are not the finish line for AIL; it's actually a starting point. Our multi-pronged strategy targets emissions reduction through increased renewable energy use, investments in low-emission processes, and circularity initiatives. This includes optimising energy efficiency, expanding renewable energy in operations, and implementing waste-to-energy solutions. 

Certified under ISO 50001, AIL uses an IT-based Energy Management System to track and drive progress. Key projects—such as Variable Frequency Drives (VFDs), waste heat recovery, steam compressors, and biomass substitution—have already reduced energy use and emissions. In FY24, energy-saving measures resulted in over 6.3 million kWh of savings. Investments in hybrid renewable power and cleaner fuels have also been significantly scaled up. With renewable power expected to account for over 75 per cent of our purchased energy mix by FY27, we're on track to reduce our carbon footprint significantly. Further sustainability measures include advanced distillation, NOx abatement, zero liquid discharge, and hazardous waste recycling. Every plant upgrade, every molecule redesign, now considers carbon impact. At AIL, emissions control should be integrated into the design, rather than being treated as an afterthought.  

AIL increased its investments in renewable energy sources during fiscal year 2024. What percentage of the company's energy mix is now derived from renewables, and what are the future targets? 

As of FY24, AIL commissioned a 13.2 MW hybrid renewable power plant, reinforcing our push towards energy transition. We are progressively tilting our energy mix towards renewables, and our next milestone is to reach a point where more than 75 per cent of our purchased power requirements going forward will be met through renewable sources.  

Over the next three years, this will be further accelerated through a mix of captive green projects and green power procurement.  

Aarti Circularity, a wholly owned subsidiary of AIL, has formed a joint venture with Re Sustainability to establish a plastic recycling facility in Hyderabad, at an outlay of Rs. 100 crore. What is the current status of the project and long-term targets? 

Aarti Circularity’s joint venture with Re Sustainability is a bold step toward material circularity. The Rs. 100 crore Hyderabad project, currently in the pre-construction stage, is designed to process hard-to-recycle multilayer plastics using advanced recycling technology. Over time, we aim to recover value from waste at scale, reduce our dependency on landfills, and offer recycled raw materials as feedstock back into the petrochemical supply chain. It’s about closing the loop. The project is progressing as planned, with long-term targets focused on promoting circular economy practices and enhancing operational sustainability. 

AIL ranks between 1st and 4th globally for 75 per cent of its product portfolio. What strategies have contributed to achieving and maintaining this market position? 

AIL’s strong global ranking is a result of its commitment to quality, innovation, and customer-centric approaches. Our global leadership is rooted in deep strengths, including an integrated operating model, a de-risked and diversified portfolio, and long-term customer relationships. With over 100 products supplied to more than 1,100 customers in 60 countries, we have earned trust by consistently delivering value-added, cost-effective solutions. Our R&D-driven innovation, with 250+ scientists and 40+ new products under development, ensures we stay ahead of market needs. Strategic capital expenditures in high-margin value chains and emerging chemistries, such as electronic chemicals, membranes and polymer additives, further reinforce our edge. At AIL, we build enduring leadership through science, scale, and sustainability. 

What programs has AIL implemented to promote employee well-being, gender equality, and community development in 2024? 

People are the cornerstone of our success. We firmly believe a thriving organisation is built on the well-being of its employees. This belief is reflected in our comprehensive approach to employee welfare, encompassing five key dimensions: career, financial, social community, health, and well-being. These pillars of well-being are integral to our organisational culture, driving engagement, productivity and satisfaction.  

We conduct regular employee surveys on well-being through renowned external agencies. Our scores on the dimensions of well-being have crossed 90th percentile globally. 72 per cent of our workforce have a thriving and positive view of life against a global average of 35 per cent. 

By investing in our people and communities, we not only enhance individual fulfilment but also strengthen our collective capacity to achieve excellence. AIL has implemented various programs focusing on employee health and safety, learning and development, diversity and inclusion, and community engagement. 

Aarti Industries Limited (AIL) and UPL Limited (UPL) formed a 50-50 joint venture (JV) Augene Chemical Private Limited, to manufacture and market specialty chemicals. What is the latest development on this front? 

The joint venture, Augene Chemical Private Limited, established by AIL and UPL, is progressing with plans to manufacture and market specialty chemicals. We are working on finalising the product lines that can create mutual advantage, technology and market reach.  The synergy lies in leveraging the strengths of the two partners to build a platform for differentiated specialty chemicals catering to global demand. This arrangement will enable India to demonstrate its ability to collaborate and partner in creating world-class chemical manufacturing assets that deliver innovative specialty chemicals to the world. 

July 19, 2025

Epsilon Carbon, one of the largest exporters of specialty carbon & carbon black globally, is racing ahead with its global expansion plan. Vikram Handa, Managing Director, Epsilon Carbon shares his vision for the company... 

How has Epsilon Carbon performed financially in FY 2024-25? Key growth drivers that influenced company's revenue and profitability? 

Epsilon Carbon's financial performance in FY 2024-25 shows a period of strategic investment and market adjustments. While revenue and profitability saw a dip compared to the previous year, this was largely due to ongoing expansions and shifts in market demand. The company is focused on strengthening its asset base, increasing fixed assets to support future growth, and optimizing working capital for better efficiency. 

We are working on a few high-value specialty carbon products that are currently 100 per cent imported into India. Our new product line will serve as an import substitution for these products. Investments in sustainability-linked projects and R&D played a crucial role in enhancing the company’s long-term positioning. Despite short-term fluctuations, the company remains focused on leveraging its investments to drive sustained growth, particularly in specialty chemicals, advanced materials for EV batteries. 

Epsilon plans to invest about Rs 8,000 crores in India and USA during the next three years. Which business areas are expected to get the highest Capex allocation in terms of capacity expansion and new manufacturing plants? 

Our investments focus is on specialty carbon capacity expansion by 300,000 tons in Jharsuguda, Odisha and setting up a 30,000 graphite anode manufacturing facility in Karnataka. This also includes a 30,000 tons graphite anode manufacturing plant in North Carolina, USA. Both the India and US graphite anode facilities are currently in the permitting phase, with engineering work progressing, and construction is expected to begin early next year. The specialty carbon plant in Jharsuguda will be operational by Q3 2026. 

How is Epsilon Carbon leveraging R&D to develop advanced carbon materials for emerging industries like EV batteries and specialty chemicals? Do you also plan to invest in bio-based or circular economy-driven R&D projects? 

We are continuously innovating to meet evolving market demands while enhancing performance, efficiency, and sustainability for all our products. For Epsilon Carbon, our R&D is focused on developing sustainable carbon black solutions, and we recently launched Terrablack, which is transforming the carbon black industry for both tyre and non-tyre sectors. By utilizing recovered carbon black (rCB) and tyre-derived oil as key raw materials, we will support tire circular economy by reducing dependency on fresh feedstock while delivering high-quality solutions for tyres, rubber, and coatings. We are also researching on developing customized carbon black paste and creosote oil tailored for specific industrial applications to enhance processing efficiency and product performance. Additionally, we are also working on custom high-performance carbon black grades to meet the evolving needs of the tyre industry, focusing on sustainability, durability, and efficiency. 

In Epsilon Advanced Materials, we are focusing on developing graphite-silicon composite anodes, which can significantly improve the energy density and range of lithium-ion batteries. Our Joint Development Agreement (JDA) with Daejoo, Korea will strengthen our expertise in next-generation battery materials.  

Our R&D facility in Vijayanagar focuses on innovation in battery material research, pilot production, cell fabrication, and testing while continuously exploring new materials, techniques, and designs. Additionally, our Germany based Cathode Research Centre is pioneering in cathode material research, pilot production, and cell testing, expanding our capabilities in advanced battery technologies. 

Can you provide details on Epsilon Carbon's Rs. 15,350 crore investment in Karnataka? Expected timeline for the project and its strategic importance for the company?

We are investing Rs. 15,350 crores in Karnataka to set up a manufacturing and research facility focused on EV battery ecosystem. The project includes setting up a Rs. 9,000 crore graphite anode manufacturing facility, a Rs. 6,000 crore lithium iron phosphate (LFP) cathode plant, and a Rs. 350 crore Research and Development Centre for battery material development, testing and training. These facilities will be developed by Epsilon Advanced Materials, Epsilon CAM Pvt. Ltd., and Inspire Energy Research Centre. Our goal is to provide Domestic Value Addition (DVA) of 100 per cent for anode material and 60 per cent for cathode material to Indian cell manufacturers which will enable them to become class -1 “Make in India” producer.

These investments are expected to create over 2,000 jobs in Karnataka, contributing to regional economic growth and positioning India as a key player in the global battery materials supply chain. 

Epsilon Carbon has committed to investing Rs. 8,000 crore to develop an Integrated Carbon Complex in Odisha. Could you provide insights into the key features of this complex, its expected production capacities, and the projected impact on both local and global markets?  

Last year, we announced the Integrated Carbon Complex in Jharsuguda, Odisha, with an investment of Rs 8,000 crores spread over the next 10 years. As phase-1, we will build a 300,000-ton Coal Tar Distillation Plant by 2026. From this facility, we are set to produce several specialty oils like Anthraquinone, Carbazole & Cresols that are currently 100 per cent imported. We aim to make India more self-reliant and reduce import dependence.

 This plant will support nearby aluminium smelters while also exporting to the Middle East from our planned port in Gopalpur. Over time, we plan to build a carbon black plant and an advanced materials unit, making this one of the largest integrated carbon complexes in the world. Through this project, Epsilon Carbon aims to boost domestic production, create jobs, and contribute to India's industrial growth while expanding our global presence. 

The Karnataka manufacturing plant recently received the ISCC PLUS certification. How does this certification influence your operations, and what benefits do you anticipate in terms of market reach and customer trust? 

ISCC PLUS certification is a significant milestone in our commitment to sustainability and responsible production. This certification shows our efforts in using sustainable raw materials, lowering our carbon footprint, and ensuring full traceability across our supply chain. By meeting global environmental standards, we are strengthening our position as a leader in sustainable carbon solutions. 

This certification also allows us to expand into markets that prioritize responsible sourcing, particularly in sectors like specialty chemicals and advanced carbon materials. As sustainability becomes a key focus for global brands, our certification enhances customer confidence and positions us as a preferred supplier for companies committed to reducing their environmental impact. It also gives us an edge in regulatory compliance, helping us meet evolving industry standards and unlocking new business opportunities. 

With a Rs. 550 crore investment to expand the Vijayanagar unit's capacity by an additional 100,000 metric tons, what are the expected outcomes in terms of production efficiency and market share?  

Our carbon black capacity expansion to 100,000 metric tons is a strategic move to strengthen the production capabilities and global market position. This will increase our total carbon black capacity to 215,000 metric tons annually, enhancing supply for both tire and non-tire applications. This growth will enable us to capture a large share of the domestic and international markets, potentially increasing market share from 7 per cent to approximately 14 per cent, positioning us as the third-largest carbon black producer in India to serve the growing demand for high-quality carbon black in industries such as automotive, plastics, and specialty chemicals.

Epsilon Carbon's 2023-24 sustainability report indicates a 10 per cent reduction in greenhouse gas emission intensity, a 3.3 per cent decrease in energy intensity, and a 6 per cent reduction in water use intensity compared to the previous fiscal year. Could you elaborate on the specific strategies and technologies implemented to achieve these environmental milestones?  

One of our key initiatives was to set-up a waste heat recovery system which captures and reuses excess heat from industrial processes. These waste hot gases run a 17 MW captive power plant that powers our entire carbon complex in Vijayanagar. This has led to a 15.7 per cent reduction in Scope-1 emissions and a 14 per cent reduction in Scope-2 emissions. We also introduced the Digital Analytics for Resource and Technology (DART) Program, a digital initiative that leverages data analytics to improve operational and environmental efficiencies. By integrating digital tools into manufacturing and resource management, we have been able to monitor and optimize resource utilization more effectively. 

These sustainability-driven efforts align with India's broader climate goals and reinforce our commitment to responsible industrial practices. 

Epsilon Carbon secured Rs 100 crore in sustainability-linked funding from Standard Chartered Bank. How will these funds be allocated to further the company's sustainability goals, and what specific projects are prioritized under this funding? 

The sustainability-linked funding from Standard Chartered Bank is a big step towards strengthening our ESG commitments. This funding is mainly focused on making our operations more sustainable by reducing greenhouse gas emissions, optimizing water and energy use and improving overall efficiency. One key requirement is a third-party audit to ensure we are meeting our ESG targets, which helps keep our approach structured and transparent. 

The funds are being used for working capital and specific projects that make a real impact. For example, we are working on improving energy efficiency by monitoring steam traps to reduce energy losses. We are also investing in technology and processes that help lower our carbon footprint while maintaining high operational standards. 

Beyond the immediate impact, this funding has helped us set a clear sustainability roadmap for the next one, three and five years. It has also strengthened our collaboration with financial institutions on ESG-driven projects and opened up opportunities for more sustainability-linked financing in the future. Overall, we see this as a great step toward creating long-term environmental and economic value. 

Being the first Indian carbon black manufacturer to receive the SA8000 certification, how has this recognition influenced your company's internal policies and stakeholder relationships? 

Getting SA8000 certification is a big milestone for us, making us the first Indian carbon black manufacturer to earn this recognition. It shows our commitment to ethical business practices and worker welfare, leading to positive changes within the company and in our relationships with stakeholders. 

Inside the company, we have strengthened policies to ensure fair wages, safe working conditions, and better living facilities for our employees. Our Vijayanagar township now provides housing for over 1,800 workers and their families, creating a clean and healthy living environment. We have also taken steps to support migrant workers by helping them settle in smoothly and access essential services. 

Earning this recognition is just the beginning. We’re committed to continuously improving our policies and workplace environment, ensuring that social responsibility stays at the core of our growth.

How is Epsilon Carbon leveraging digital transformation to enhance efficiency across its operations? Are you implementing AI, IoT, and Big Data analytics in manufacturing to optimize production processes?

Our digital transformation journey, “DART,” began two years ago with an aim to enhance efficiency, automation, and innovation. We started by digitising data handling with SAP ERP, streamlining operations across key functions, and implementing a Master Data Management tool to improve data accuracy. 

In the second year, we focused on automation in Finance with enterprise asset management, auto invoicing & treasury, and tax intelligence. We improved supply chain and shop floor operations with an Energy Management System, real-time shipment tracking, and compliance management. Upgrading to SAP RISE improved integration, while analytical tools enhanced decision-making and sustainability tracking. 

This year, we are enhancing shop floor efficiency and customer experience by extending energy management, implementing a Laboratory Information Management System (LIMS), and using IoT and AI for predictive maintenance. Looking ahead, we aim to integrate AI into daily operations with Microsoft Copilot and SAP Joule while developing a data lake to leverage AI and Machine Learning for greater operational efficiency. 

Epsilon Carbon introduced a fleet of five electric trucks to its logistics operations. What has been the impact of this initiative on the company's carbon footprint, and are there plans to expand the use of electric vehicles in the future?  

Introducing 5 electric trucks into our logistics operations was a big step towards our sustainability journey. By shifting from diesel to electric, we expect to cut CO? emissions by around 127 metric tons per year, showing our continued effort to reduce our impact on the environment. Each of these heavy-duty electric trucks comes with a 258-kWh battery, providing a range of 185 Kms which is perfect for transporting raw materials like coal tar efficiently. With this move, we have become the first company in India’s carbon sector to use electric trucks for raw material logistics, setting a new benchmark for sustainable practices in the industry. 

We are actively looking at ways to expand our Electric Vehicle fleet across different parts of our operations. This is all part of our larger strategy to integrate greener technologies throughout our value chain, contributing to India’s goal of achieving net-zero emissions by 2070. 

The company's 'Sustainable Livelihood Interventions for Women' project in Sripura Village received the 'Best CSR Project of the Year 2024' award. How has this initiative impacted the local community, and are there plans to replicate similar projects in other regions?  

The ‘Sustainable Livelihood Interventions for Women’ project in Sripura Village, Odisha, has empowered over 200 women through Self-Help Groups (SHGs). By providing vocational training in phenyl manufacturing, tailoring, and agarbatti production, the initiative has helped women achieve financial independence. 

A key success story is the 'Maa Parbati SHG,' where women have successfully produced and sold phenyl bottles across Jharsuguda, boosting their confidence and economic stability. Beyond financial support, the project has encouraged leadership and community participation. 

Building on this success, we plan to expand similar programs in other direct impact regions, reinforcing our commitment to women’s empowerment and social sustainability.

July 18, 2025

Gujarat Fluorochemicals Limited (GFL) stands apart in the highly specialized fluoropolymer market through a combination of deep technical capabilities, forward-looking investments, and a strategic global outlook. Kapil Malhotra, Global Business Unit Head - Fluoropolymers, Gujarat Fluorochemicals shares his perspective on the emerging market dynamics and GFL’s preparedness to cash in on new opportunities… 

How do you see the Industry dynamics, particularly in the automotive, semiconductors, EV and ESS industries, to provide large scale opportunities for value-added fluoropolymers, which should translate into higher revenues and margins for GFL? 

In the automotive industry, there has been a growing shift towards electric vehicles (EVs), increasing the demand for durable and high-performance materials. GFL’s fluoropolymers play a vital role in this particular application for wire and cable insulations, seals, gaskets, hoses and membranes. This indicates that with the strong and growing demand for EV, the volume demand for fluoropolymers will also grow substantially. The EV batteries and Energy Storage Systems (ESS) also use advanced fluoropolymers as coatings for separators, electrolyte additives and liners. With large players looking for safety and durability, we are highly optimistic about the future as GFL’s fluoropolymers have an excellent track record in both areas. 

In the semiconductor segment, GFL has already seen a great demand for fluoropolymer parts made out of PTFE, PFA and PVDF. With the global expansion of AI, IoT, and 5G/6G, and multi-billion-dollar investments by companies like TEL, Intel, Samsung, Tata, Adani, the semiconductor industry is most likely to require ultra-pure chemical handling systems. GFL’s fluoropolymers, especially PFA, PVDF, and PTFE are and will be witnessing demand for applications like CMP, etching system parts, wet systems, tubes, and lining equipment. 

What specific role do fluoropolymers play in semiconductor manufacturing and why are they essential? 

In the semiconductor manufacturing industry, fluoropolymers are critical as the processes involve extreme purity, high temperatures and aggressive chemicals.

Some specific roles of fluoropolymers include chemical handling where PTFE, PFA, PVDF pipes, tubes, valves, and tanks are used in processes that involve high corrosive chemicals. Another is wafer processing, with exposure to acids and plasma, fluoropolymer coatings are used to protect chambers and parts from degradation, extending equipment life and preventing contamination. Chemical Mechanical Planarization where CMP slurries used to polish wafers require slurry delivery lines made of fluoropolymers to eradicate contamination. Gas Delivery Systems has specialty gases like CF₄ used in etching that require fluoropolymer-lined gas tubings to prevent chemical reactions and particle shredding. Filtration Systems have fluoropolymer membranes being used in filters that remove ultra-fine particles from chemicals and gases.

How do you foresee the demand for fluoropolymers evolving in the semiconductor market over the next five years? 

With continued fab expansions by TSMC, Intel, Samsung, Hynix, Micron in the US, Europe, Japan, Korea, Taiwan and new players like Tata expanding in India, there is an estimated US$ 700+ billion of fab Capex planned worldwide, by 2030. 

As process nodes shrink (5nm, 3nm, 2nm), purity and material performance requirements skyrocket. This sets a very strong background for material consumption, including fluoropolymers. The demand for fluoropolymers in semiconductors is expected to grow at a CAGR of over 8-12 per cent (with the overall semiconductor volume growth expected at 6 per cent). PFA and UHP PFA, will see even higher growth of about 12-15 per cent because of the advanced chip sizes. 

How is GFL gearing to cater to the growing demand of fluoropolymers - PTFE, PFA, FEP, FKM, PVDF and Additives?  

GFL has been very active in capitalizing on the fluoropolymer demand surge. With heavy investments in expanding the production capacity, new facilities, testing equipment and R&D centers, GFL’s expansion is targeted at high-margin applications. GFL has also been broadening its product basket beyond PTFE, to cater to the demand in EV, SC, UPW and battery segments. The company is also focusing on actively expanding sales in US, Europe, and Japan markets, critical for semiconductor fabs, EV battery manufacturers and high-end industries. GFL is also focusing on targeting stringent certifications and regulatory approvals to qualify for the highest value supply chains. 

What are the emerging trends or technologies in fluoropolymers that GFL believes will redefine their use in the semiconductor industry? 

Some of the emerging trends and technologies which will define the use of fluoropolymers in the semiconductor industry include Ultra-High Pure (UHP) grades; next-gen plasma-resistant materials, tailored melt-processable materials; high purity PFA, PVDF; surface modified fluoropolymer coating material; environmentally safer fluoropolymers; specialty compounding facilities; and regulatory preparedness. 

How does GFL contribute to innovation in fluoropolymer production or application for semiconductors?  

GFL is in constant touch with end customers and equipment manufacturers to understand their requirements in terms of quality, purity and technical specifications. We are equipped with state-of-the-art R&D setup to develop grades and products for the semicon industry. 

How do geopolitical factors and supply chain issues affect the production and distribution of fluoropolymers in the semiconductor sector? 

The production and distribution of fluoropolymers in the semiconductor industry are increasingly influenced by a combination of geopolitical and supply chain dynamics. A major factor is the sector’s heavy dependence on China for critical raw materials and processing capabilities, which makes it vulnerable to shifts in global political relationships. The rise of export controls and trade restrictions, particularly between major economies, has further complicated cross-border movement of specialized materials. Additionally, persistent supply chain bottlenecks, such as limited transportation infrastructure and port congestion, have strained timelines and inventories across regions. Compounding these issues are evolving regulatory pressures, especially concerning environmental compliance and product stewardship, which vary significantly across jurisdictions. 

In light of increasing environmental regulations, how is GFL adapting its fluoropolymer solutions to meet sustainability standards? 

GFL has taken a proactive and leadership-driven approach to evolving environmental regulations, positioning itself as a global front-runner in regulatory compliance within the fluoropolymer industry. We have consistently anticipated changes in sustainability standards and have developed products that not only meet but often exceed these regulatory requirements. Our R&D teams work closely with global stakeholders to ensure that our fluoropolymer solutions are aligned with the latest environmental expectations, ensuring both performance and responsibility go hand in hand. 

How do you see the competitive landscape in the fluoropolymer space, particularly regarding their application in semiconductors? 

The global fluoropolymer market for semiconductors has historically been dominated by a handful of high-end players. However, recent structural shifts — including geopolitical decoupling and tightening regulatory frameworks — have disrupted this equilibrium, creating clear gaps and new opportunities in the market. GFL is strategically positioned to fill this void and emerge as a formidable challenger across a broad spectrum of applications. In the semiconductor space, success is defined not merely by scale or cost competitiveness, but by a deep command of technical sophistication, an area where GFL continues to demonstrate strong capabilities and innovation. 

What differentiates GFL’s products or services from those offered by competitors in this niche market?  

GFL stands apart in the highly specialized fluoropolymer market through a combination of deep technical capabilities, forward-looking investments, and a strategic global outlook. Our key differentiators include backward integration in raw materials, aggressive capacity expansion, focused new product development, strategic global expansion, and proactive regulatory compliance. As the first major Indian player in ultra-high-purity (UHP) fluoropolymers, GFL is now one of the few globally trusted fluoropolymer sources of Indian origin. 

How closely GFL works with semiconductor manufacturers to develop tailor made fluoropolymer solutions?  

GFL is evolving beyond the traditional supplier role to become a true materials co-development partner for the semiconductor industry. Our collaboration begins early, often during fab design cycles, allowing us to tailor fluoropolymer solutions at the molecular level to meet precise performance demands. We actively participate in global qualification programs, ensuring our materials meet stringent international standards. Additionally, our model includes near-customer technical support, enabling faster iterations, quicker issue resolution, and deeper alignment with customer roadmaps. This integrated approach positions GFL as not just a vendor, but a strategic innovation partner in the semiconductor value chain. 

What are the key challenges GFL faces in supplying fluoropolymers for semiconductor applications? 

While GFL is well-positioned in the semiconductor fluoropolymer space, operating in this high-stakes, innovation-driven segment comes with its own set of complex challenges. These include lengthy qualification timelines, high technical entry barriers, continuous innovation for evolving processes, and navigating regulatory compliance. 

How do you envision the role of fluoropolymers in emerging technologies like AI, IoT, and Quantum Computing? 

Emerging technologies such as AI, IoT, and Quantum Computing are driving the evolution of next-generation semiconductor chips, demanding higher performance, greater miniaturization, and extreme reliability. This directly translates to increased usage of fluoropolymers, given their unmatched chemical resistance, thermal stability, and ultra-high purity characteristics. As chip designs become more complex and process environments more aggressive, fluoropolymers are playing an increasingly critical role in enabling the materials infrastructure that powers these technologies. 

What are GFL’s long-term strategic goals in the fluoropolymer segment of the semiconductor industry? 

GFL’s long-term vision is to establish itself as a globally trusted and technologically advanced partner for the semiconductor industry. Our primary goal is to consistently meet and exceed the stringent quality and purity standards demanded by this sector. We are committed to scaling our capacities in alignment with global market requirements, investing in advanced R&D, and continuously enhancing our material performance to support future technology nodes. By aligning closely with semiconductor roadmaps, GFL aims to play a pivotal role in the industry's evolving materials ecosystem. 

What role do sustainability and corporate social responsibility play in your company’s strategy regarding fluoropolymers? 

Sustainability and corporate social responsibility are integral to GFL’s long-term strategy, especially within the fluoropolymer business. We have a dedicated ESG team that oversees all aspects of environmental stewardship, corporate governance, and community engagement. Our approach goes beyond compliance — we actively embed sustainability into product development, operations, and stakeholder relationships. GFL publishes an Integrated Annual Report along with a Business Responsibility and Sustainability Report (BRSR) in line with SEBI guidelines, transparently outlining our ESG initiatives and performance. This structured focus ensures that our growth in high-tech sectors like fluoropolymers is both responsible and future-ready. 

What is the long term vision of the company and how do your efforts align with it?  

At GFL, we remain deeply committed to advancing the fluoropolymer business with a clear focus on sustainability, innovation, and global relevance. As the industry evolves rapidly, driven by breakthroughs in semiconductors, clean energy, and advanced manufacturing, we are positioning ourselves not just as a supplier, but as a strategic, future-ready partner. Our efforts are anchored in long-term thinking, responsible practices, and a strong belief in building value for our customers, stakeholders, and the environment.

July 17, 2025

Haldia Petrochemicals Ltd. (HPL) is a modern naphtha based Petrochemical Complex. HPL is the second largest manufacturer of polyethylene  in India with a total capacity of 700 KTA. The company has initiated a Rs. 5,500 crore capex plan for an integrated OCU-Phenol project, with a combined capacity of 560,000 TPA of phenol and acetone. Navanit Narayan, Chief Executive Officer, Haldia Petrochemicals talks about the challenges and oppportunities in the Indian petrochemicals industry as well as his company's expansion plan and performance...

What role does Haldia Petrochemicals Ltd. (HPL) envision playing in the broader context of India's petrochemical industry expansion, and how does it plan to collaborate with other stakeholders to achieve these ambitious investment goals? 

The growth of the Indian petrochemical industry is crucial considering it is generating raw materials for various end-use segments such as agriculture, infrastructure, pharmaceuticals, appliances, automobiles, textiles, packaging, construction etc. Integrated petrochemical complexes like HPL generate huge downstream value creation facilitating large investment and employment creation in downstream chemical and polymer processing.  Growth of polymer processing in West Bengal is testimonial to success of such collaborative business models. 

The large petrochemical industry landscape requires investment and collaboration at multiple levels to achieve self-sufficiency to meet growing demand from a large population base. To realize the goal of “Atmanirbhar Bharat” we need to invest in Plant, People and Processes and HPL is ready to collaborate and establish an ecosystem for our stakeholder which perpetuates the growth cycle for all. We have been very focused in our investment strategy to reduce the country's imbalance of niche chemicals and committed an investment of Rs 5,500+ crore in India’s first Integrated Phenol Complex. With our strong relationship with Lummus Technology and bonds created with technology leaders over the last 25 years, we intend to collaborate and invest to bring state-of-the art petrochemical technologies for niche applications in the Indian market.  

We are dedicated to ensuring reliable and cost-effective material supply for our customers along with strong customer and business development support to facilitate large downstream investments in chemical and polymer processing. We have always been proactive in capacity building for human resources to meet growing demand of highly skilled manpower and would work closely with academia, industry bodies, government and other stakeholders to nurture and develop the talent pipeline needed to meet huge demand as we grow.  

You would also appreciate that a positive policy framework is essential to achieve leapfrogging growth of the industry. We, along with industry peers, can collaborate with the Government to develop an enabling policy framework which provides long-term competitiveness of Indian petrochemical industry on the global scale and thus realize the shared dreams of Atmanirbhar Bharat. 

HPL’s financial performance has experienced fluctuations, with operating profits impacted by declining tolling margins in recent years. Could you elaborate on the factors that influenced HPL's revenue performance during FY 2024-25 (so far) and what strategies were implemented to navigate these challenges?  

The petrochemical industry is a typical commodity industry having cyclicity in industry performance. The current financial performance is not typical of HPL and decline in profitability has been witnessed by almost all producers in Asia, Europe etc. 

The major factor influencing current performance is significant capacity creations, especially in China whereas demand growth has been stagnant post covid in several parts of the world. Margins are squeezed globally from intense competition between global suppliers to reach the customer base. In India, we have also been adversely impacted by intense competition after commissioning of one of the largest plants in the country.  

We have been very focused in our approach to manage the current downcycle. We have progressively moved to an enviable cost position for a naphtha-based producer in the country and the world. An organization-wide initiative, Project FEISTY (Focused EBITDA Improvement through Systematic Transformation) was undertaken to optimize conversion and logistics costs to ensure that the current downcycle is well managed. Apart from managing costs, we have also taken a focused approach to add new products and diversify the product basket with countercyclical margin products. 

Can you provide an overview of HPL's capital expenditure initiatives undertaken in FY 2024-25, particularly focusing on any major projects or acquisitions? What's your plan for FY 2025-26?  

We have initiated a Rs 5,500 crore capex plan for an integrated OCU-Phenol project, with a combined capacity of 560,000 TPA of phenol and acetone, through one of our step-down subsidiaries. We expect to complete the project in the first half of 2026. We are also evaluating several chemical downstream projects and expect to take final investment decisions soon. 

In November 2024, HPL signed a license amendment with Lummus Technology to enhance the production capacity of its upcoming Phenol and Acetone Plant in Haldia, West Bengal.  What strategic objectives does HPL aim to achieve with the expanded phenol and acetone production capacities, and how will this impact the domestic and international markets?  

HPL through its subsidiary Adplus is planning to set up a state-of-the-art single location phenol manufacturing facility in India. This capacity expansion aligns with HPL’s ambitious growth strategy and reflects the company's commitment to supporting India’s chemicals industry. Our partnership with Lummus Technology has enabled the efficient design of India’s largest integrated phenol plant. This expansion marks a major milestone for HPL, reinforcing our role in driving the nation’s industrial growth and advancing its role in the production of vital chemical intermediates. 

Phenol project is an idea creating an ecosystem of phenol and acetone downstream which was not available in the eastern part of India. Now, such an ecosystem creates a lot of opportunities not only for us to grow but also for the other players to grow. We see the Phenol project to facilitate significant investment in the downstream segment, further improving the chemical industry ecosystem in West Bengal and the eastern region.  

HPL recently entered into a significant 10-year naphtha supply agreement with QatarEnergy. What factors influenced HPL's decision to secure this long-term naphtha supply agreement with QatarEnergy, and how does it align with the company's strategic objectives? 

HPL sources 50 per cent of its feedstock from the Middle East and relies on local refiners for the rest of its feedstock needs. Managing crude oil fluctuations and its impact on our feedstock prices remains a major challenge. The fluctuating crude prices due to various global factors have encouraged us to get into a strategic 10-year agreement (through its 100 per cent subsidiary, HPL Global Pte Limited, Singapore) with QatarEnergy, to secure long-term naphtha supply. Under this agreement, QatarEnergy will supply a total of up to two million tons of naphtha to HPL over the next ten years, starting from the second quarter of 2024. This agreement is in line with our focused and innovative approach to secure long-term competitive advantage.   

HPL announced plans to establish a polycarbonate production plant in West Bengal, with an estimated investment of over Rs 8,500 crore. Could you elaborate on the factors influencing HPL's decision to venture into polycarbonate production, and what are the anticipated benefits for the company and the region? 

We would like to reiterate our vision to create an ecosystem which will transform not only West Bengal but eastern and northeastern regions of India. Chemical downstream projects are one of the means to create that ecosystem. As a part of these, we are evaluating multiple opportunities including Polycarbonates which are entirely being imported in the country. These projects are synergic to our current and future chemical product basket. However, these are still in early stages of evaluation and would not like to assign any capex, timeline and benefits at this stage.  

HPL is commissioning a specialty Low Molecular Weight (LMW) polymer project, expected to increase the topline of the specialty chemical business by about Rs. 100 crore per annum. What are the key applications and markets targeted by the LMW polymer project, and how does HPL plan to position itself as a leading player in the specialty chemicals segment? 

Adplus, a step-down subsidiary of HPL inaugurated its state-of-the-art zero-waste LMW PE Wax manufacturing plant in Haldia in 2024. The products, under the brand “Polyfast”, is providing benchmarked quality product to various industries such as plastics and rubber, bitumen roofing membranes, hot melt adhesives, paints, ink, toners, paper coatings, high altitude road surfacing, and even cosmetic and skin care products.

This is a small foray in the specialty chemical segment by the group. However, we are keenly evaluating and working on a basket of products to increase our presence in specialty chemical segments and expect to unveil our road map soon.

What digital transformation initiatives has HPL implemented recently to enhance operational efficiency and maintain a competitive edge in the petrochemical industry? 

Digital transformation has played an integral role for us in building an ecosystem of trusted business stakeholders both internal and externally. HPL has adopted a multi-pronged approach for its digital journey towards process automation, reliability, troubleshooting and to improve operational efficiencies.  

In a recent technological advancement initiative, we have introduced Real-Time Optimization (RTO) services for Naphtha Cracker Unit (NCU). This RTO system is supporting HPL’s journey of achieving operational excellence through undertaking technology driven transformative programs aimed at process/ performance optimization.

An integrated RTO allows HPL to take full advantage of the plant’s overall economic potential. The goal of RTO is to maximize the profit and excellence of the NCU functions and establish the target set points for the operating variables at which the profit is maximum.

How is HPL integrating sustainability into its operations and product offerings to address environmental challenges and contribute to a greener future?

We are committed to leaving no stone unturned in our endeavour of harbouring a sustainable approach in our operations and developing a more ESG (Environment, Social and Governance) compliant business environment. A dedicated ESG team is working diligently to develop and implement sustainable actions towards environmental conservation. 

We have installed 1 MWp Solar Power Plant in December 2021. In terms of rainwater harvesting, we use more than 8, 74,356 m3 of rainwater (FY 23-24), thereby conserving the natural resources (fresh water). We are implementing several water recycle and reuse projects and progressing gradually towards Zero Liquid Discharge (ZLD).

With a total 1.25 Lac of trees in our greenbelt, we are planning to further increase the number of trees. In terms of clean technology, we are implementing Pipe Coal Conveyor to transport coal from port to plant to replace transfer through trucks. 

HPL has a history of engaging in CSR activities, focusing on areas such as education, healthcare, and environmental sustainability. Could you highlight some of HPL's key CSR initiatives undertaken in 2024, and how they have impacted the communities involved? 

HPL through its subsidiary Adperma (Advanced Performance Materials Private Limited) in FY 2024-25 focused on 7 verticals in line with the SDGs and India’s position in strengthening the SDG Goals. The verticals include education, healthcare, infrastructure, sustainable development, women empowerment and equal status, sports and environment.  

Under the education category, the company has taken up support in building of a new school in a remote village, infrastructural development projects for schools, building of smart classrooms, upgradation, and construction of science laboratories for schools which were spread in and around Purba Midnapore district. For healthcare - medical equipment, ambulances donation to medical facilities and free medical checkup camps have been organised. Under women empowerment projects, we are training women to make products out of water hyacinth and jute, and sanitary napkins. To empower underprivileged youth, we have also conducted two and three wheeler service technician training in Haldia and fruit tree plantation across schools in Haldia continued for the second year as a part of environmental activity. 

July 14, 2025

GAIL Mangalore Petrochemicals Limited, (formerly JBF Petrochemicals Limited), a 100% subsidiary of GAIL (India) Limited was entirely taken over from JBF Industries Limited in a competitive bid in CIRP process. The scope of the entity includes setting up a 1.25 MTPA Purified Terephthalic Acid (PTA) plant at Mangalore Special Economic Zone (Mangalore SEZ or MSEZ) in Karnataka. Ayush Gupta, Director (HR), GAIL India & Chairman, GAIL Mangalore Petrochemicals Limited talks about the company's implementation strategy and how GMPL is going to add to GAIL's petrochemicals portfolio... 

What is the current status of GAIL Mangalore Petrochemicals Limited (GMPL) and how its collaboration with GAIL (India) influences its strategic direction and what synergies have been realized from this partnership?

The GAIL Mangalore Petrochemicals Limited (GMPL) plant was acquired through National Company Law Tribunal (NCLT), followed by a capital infusion to revive its operations. The plant had been non-operational for seven years, so we first needed to assess the extent of damage and identify components that required replacement. While feasibility reports were available, several aspects remained uncertain at the outset.

I am pleased to share that both the estimated cost and timeline are well within control. In fact, the actual costs have come in lower than initially projected, and the schedule remains largely on track. Although we had initially targeted commissioning the plant by August or September 2025, there has been a slight delay. We now expect to commission the plant by the end of December 2025 or, at the latest, early January 2026. Trial production should begin around that time. With pre-commissioning activities already underway, we have initiated the boiler revival process and are progressing in phases, with a goal to complete this by October 2025.

So far, a total capital infusion of approximately Rs 59,691 lakh has been made, and the plant revival is progressing steadily. Of this, Rs 39,425 lakh has been invested as equity. The majority of this capital has come from GAIL, which underpins GMPL’s financial strength. GAIL’s board had approved this equity investment at the time of acquiring the plant through the NCLT process, ensuring a guaranteed cash flow within the approved limits.

Two critical aspects for commissioning the plant revolve around raw material sourcing and operational readiness. One key input is paraxylene, the primary feedstock for producing PTA, which is essential for polyester manufacturing. Initially, we had planned to source paraxylene through an agreement with MRPL, and discussions with them are ongoing. At the same time, we are exploring the option of importing paraxylene via the sea route. Infrastructure is being developed for this purpose, including laying pipelines from the port to the plant. We are actively coordinating with port authorities, working on setting up a pumping station, and arranging temporary storage facilities at the port to ensure an uninterrupted supply chain. In the coming month, we plan to issue an Expression of Interest (EOI) to onboard additional suppliers and create a diversified, empaneled vendor base.

On the marketing front, we have already initiated outreach efforts and are in discussions with potential customers. GAIL’s marketing team is providing strong support in finalizing warehousing and sales agreements, leveraging their established presence in the petrochemical sector. Both paraxylene sourcing and PTA marketing will be managed by GAIL’s marketing division.

How do the company's recent initiatives, such as the PTA plant revitalization, contribute to India's vision of self-reliance in petrochemicals under the Atmanirbhar Bharat initiative?

With PTA added to the product mix, GAIL’s petrochemical portfolio will become fully integrated across all product segments within the next year. This positions us strongly in the market, especially as domestic demand for petrochemicals is projected to triple over the next decade. Currently, a significant share of these is imported, creating substantial opportunities for import substitution and enhancing the long-term prospects of India’s petrochemical sector.

GAIL is in the early stages of planning another ethane cracker plant. While the financial structuring is yet to be finalized, this move is aligned with anticipated demand in the petrochemical sector. Meanwhile, the PTA to be produced at the GMPL plant represents a niche product with substantial demand, particularly in the textile industry. GAIL’s established reputation for delivering high-quality products will be a significant advantage as we enter an already competitive market across India. This will be crucial, as a robust marketing strategy must accompany the commencement of production.

We are also receiving strong support from our technology licensor. Notably, we successfully renegotiated the licensing agreement with INEOS, which was originally in place with JBF Petrochemicals Limited. Given the seven-year hiatus and the absence of returns during that period, we were able to secure a more favorable deal. This renegotiation is a key milestone, as the licensor's backing during the commissioning phase, and beyond, will help ensure consistent product quality and long-term success for GMPL.

Sustainability and social responsibility are also central to our commissioning efforts. One of the significant challenges during the plant acquisition was resolving issues related to project-displaced persons. Out of 115 individuals identified, an initial list of 75 was prioritized for employment. Almost all of them have now been re-engaged, many of whom had worked at the plant previously, contributing valuable experience and support to the commissioning process. A few opted not to join, and the remaining are in the process of being integrated.

I must appreciate the fact that we have received support from the Port Authority and all the government departments. Besides, the Development Commissioner has been very helpful to make sure that the plant gets reviewed and commissioned soon. The Ministry of Petroleum and Natural Gas played a vital role in getting the clearances and approvals besides helping in resolving the issues at ground level. 

With your new plant getting commissioned, how do you see GAIL as a major player in the Indian petrochemical scenario?

GAIL is poised for a significant capacity expansion across its petrochemical portfolio. With the commissioning of the PTA unit at the GMPL plant, alongside the existing BCPL portfolio, and the upcoming Usar and Pata petrochemical plants, we are entering a transformative phase. Once operational, the GMPL plant will contribute 1,250 KTA of PTA, Usar will add 500 KTA, and Pata will bring in 60 KTA. These additional volumes are expected to come online within the next year, marking a major shift that will significantly impact the petrochemical landscape in India. This expansion will undoubtedly alter market dynamics and intensify competition. While it will be a challenging journey for GAIL to establish a strong market foothold, we are confident in our strengths—particularly our commitment to product quality, fair contracting practices, and reliable execution, all hallmarks of a Maharatna public sector enterprise.

Historically, GAIL lacked a diverse product portfolio, which limited our ability to scale competitively. However, with these three plants nearing commissioning targeted for late 2025 to early 2026, we will soon be in a position to serve a broad spectrum of customers across the country. The coming year promises to be exciting, as several other players are also eyeing entry into the market. Over the next two years, we anticipate a game-changing evolution in India’s petrochemical sector.

Why did you choose the PTA for this GMPL plant? Is it going to cater to the domestic demand or you are also looking at exporting as well?

In the initial phase, there wasn’t much of a choice as the plant was originally designed for PTA production. While exploring options for portfolio expansion, we identified PTA as a missing product in GAIL’s offering. This particular plant became available at the right time, and although other players were interested, GAIL emerged as the highest bidder.

We also see potential for further expansion, given the availability of additional land. Since the plant is located within a SEZ, there are certain export obligations we need to fulfill, and we are open to exploring those opportunities when they arise. For now, however, our primary focus remains on catering to the domestic market.

What change you brought it in your strategy to meet the tight deadline within the estimated budget?

Several critical factors contributed to the success of this project, beginning with clear and structured planning from day one. This included early and active engagement with key stakeholders such as MSEZ and the relevant ministry. Initially, there was scepticism in the market, with concerns that GAIL had overpaid for the asset. We were aware that any deviation from our profitability projections would be closely scrutinized, so we adopted a disciplined approach from the outset.

A key strategic decision was to operate with a lean team, just 50 people, but their dedication and efficiency were exceptional. They played a vital role in resolving major challenges, including settling issues with project-displaced families, renegotiating the license with INEOS, and coordinating with vendors. Their efforts ensured that all critical matters were handled professionally and on time, avoiding potential delays or cost overruns.

During the period when the licensor agreement was being renegotiated and the EPC contract was under finalization, the team proactively carried out significant groundwork. This helped us assess the plant's equipment condition and saved considerable time, boosting our confidence in the plant’s readiness. The experience of GAIL’s project team was instrumental, especially during maintenance activities, ensuring smooth progress. The small but highly capable team deployed at GMPL proved to be one of the best, playing a crucial role in managing risks and keeping the project firmly within both time and cost parameters.

Given the fluctuations in global petrochemical markets, what strategies are in place to mitigate potential risks?  Five years from now, what would be the contribution of petrochemicals that you envisage because the market is huge?

The petrochemical market is inherently volatile and cyclical, making it challenging to predict price movements, especially with numerous plants operating globally. However, this very cyclicality also presents opportunities to capitalize on favorable market conditions. The upcoming five-year cycle appears to be entering an uptrend, making GAIL’s entry into this space both timely and strategic.

Expanding into a broader product range at this juncture positions GAIL advantageously. The next five years are expected to be transformative for the petrochemical industry in India, and GAIL’s portfolio expansion is likely to contribute significantly to its overall revenue, and we hope, to its profitability as well.

In terms of Corporate Social Responsibility (CSR), GAIL has been known to help the local communities. With the commissioning of plant on anvil, how do you plan to help the local community?

From a local economic perspective, the revival of the plant, which had been shut down for seven, will bring widespread benefits. Beyond the regular workforce, a significant number of contractual employees will be engaged, positively impacting nearly 500,000 families. The local community is understandably enthusiastic about the new livelihood opportunities this project will create.

In addition to directly employing members of the project-displaced families, the commissioning of the plant is expected to generate further employment needs. Opportunities will also arise through transport contracts and various support services, helping stimulate the entire local economy and surrounding ecosystem.