Dr. Kishore Shah, Chairman, Sauradip Chemical Industries
What are the global trends in the Specialty Chemicals sector and its likely impact on Indian manufacturers?
The Indian specialty chemicals industry is expected to register 15% growth annually. Foreign companies are shifting their manufacturing base to India, owing to the highly motivated creative workforce, huge pool of scientists and chemical engineers besides low labor and equipment cost. Indian companies must master the art of constantly developing and adopting new techniques and practices to tap the opportunities. In addition, India needs a modern regulatory framework that drives innovation and encourages growth and productivity. There is a need to promote innovation, better interactions between industry and academia and more chemical clusters.
Most of the chemicals produced by the industry are commodity chemicals. Industry faces intense competition with international players on account of poor infrastructure, high capital cost, taxes, low economy of scale among others. Poor infrastructure, lack of storage facilities, poor road infrastructure, shortage of power and its costs deter the growth of the specialty chemical industry. At the same time, the advantages are price and raw material for specialty chemicals, innovation, and technology. Increasing the diversification of the product portfolio is extremely important for the industry to maintain competitiveness. It will require companies to invest heavily in R&D. To sustain themselves in the tough business environment, intensive research to produce innovative products is the key.
Changing market dynamics within the Specialty Chemicals industry in FY 2023-24?
Specialty chemicals are finding more application in the construction, automotive, electronics, and water treatment sector. These segments are most likely to drive the growth of the Indian specialty chemicals market. Therefore, upgrading the product quality through innovation and diversifying the product portfolio are extremely important for the industry to maintain the competitiveness and the overall momentum.
Key milestones achieved by Sauradip Chemical Industries in FY 2022-23 and plans for FY 2023-24?
Sauradip Chemical Industries was founded in 1974 with a philosophy of Care, Trust, and Bold Creativity, which have now become our core values. In the last 50 years, we have built unparalleled goodwill with our customers, suppliers, and our team.
We are constantly raising the bar in the industry by developing highly customized green products in consultations with customers. Our efforts have been to make available green products to customers at an affordable price and we have been touching the lives of people across the globe. Today, we have a strong presence in India and are relatively exporting to five continents across 40 different countries. Our dedicated sales and marketing team is in constant touch with customers. They deliver high performance solutions and solve challenges across various industrial segments.
Sauradip’s knowledge based and solution driven approach continues to improve and change the quality of life of Indians. We have been well recognized in the industry with many accolades.
Dr. Shah was president of the Indian Specialty Chemical Manufactures’ Association from 2007 to 2012. For the first time in 60 years, the Indian Specialty Chemicals Manufactures’ Association (ISCMA) awarded the life time achievement award to Dr. Kishore Shah on the occasion of their annual function in 2013. The award was bestowed to him by Rajubhai Schroff Chairman of United Prosperous Ltd, for meritorious service rendered to Indian Specialty Chemicals Manufactures’ Association. Dr. Shah wrote world class books (1) Handbook Synthetic Dyes & Pigments- 5 editions (2) Handbook of Industrial chemicals – 4 editions which are used as reference book throughout the world.
Please explain the product basket of the company?
Sauradip is a manufacturer of customized performance chemicals and works closely with customers to offer them Tailor-made cost-effective solutions. We believe in the philosophy of “Sustainable Solutions for a greener planet so that we can make a positive impact in the lives of people Globally”.
We cater to customers for Water Treatment Chemicals, Paint & Coating Additives, Fiber Finish for Synthetic yarn, Additives for construction chemicals, Metalworking additives, Performance chemicals for Oil Exploration & Refining, Green surfactants for Home & Personal Care, Antistatic Agents for plastics & Coatings, High-performance Disinfectants for Industrial cleaning, Specialty chemicals for mining.
Revenue and profit during FY 2022-23 and forecast for FY 2023-24? Key growth drivers?
We have been doing good in terms of revenue, registering a year on year growth of 25%. We are launching a lot of new products including paints and additives, green surfactant. We have recorded a revenue of Rs. 250 crore in the last fiscal and plan to reach Rs. 1,000 crore in the next 5-10 years. Our continuous efforts to improve the product basket and the green products will drive this growth. To increase exports, we are putting in place new distribution of networks. We are not importing anything yet we are exporting to the US, Australia, Africa, China, Russia, and other nations.
Kindly elaborate on Sauradip's knowledge-based, solutions-driven approach to develop highly customised applications in collaboration with its customers?
Sauradip's highly customized applications are developed in collaboration with their customers. Whenever a customer seeks a customized product based on his experience with some other products, we try to develop an alternative in the best possible time. We deliver performance improvements and solve challenges in a range of industrial sectors. Our customers include global leaders in paints and coatings, textiles, oil field exploration, personal care and cosmetics, dyes and pigments, adhesives, industrial cleaning, and plastics. Everyday, hundreds of millions of people enjoy a better quality of life, thanks to Sauradip's knowledge-based, solutions-driven approach.
Please take us through your key R&D initiatives and how it will help in expanding Specialty Chemicals product offerings?
Research and Innovation has been Sauradips' focus and forte for the past forty years. The company has been spending 6-7% of its revenue on the R&D initiatives. Our hi-tech research facilities are home to highly qualified and skilled scientists who are constantly raising the bar in the industry by developing non-toxic, eco-friendly and high quality solutions. Sauradip's research helps clients manage costs, reduce environmental impact and manage volatility in production. Scientists and technicians at Sauradip are continuously looking for innovative solutions to increase the efficiency and competitiveness of manufacturers. A result of those efforts is the comprehensive range of antistatic agents and lubricants that lower the yarn to metal and fiber to fiber coefficient of friction with high speed spinning efficiency.
How is the company striking a balance between environment-friendly policies and sustainable growth?
Sauradip is a pioneer of green thinking in the performance chemicals sector. Proprietary green technologies mean Sauradip's manufacturing processes emit zero discharge and zero effluent. The products play a vital role in the green value chain by allowing its customers to deliver safer, less carbon intensive products to their consumers. We are developing a good number of green products each year. We scientifically design our products for human and environment safety, protecting mother earth and saving our resources such as energy, water and time. We have developed a concentrate through our unique technology for the paints industry to reduce the carbon footprint. In the personal and home care segment, we have innovated the non-toxic products, thereby replacing toxic ones with highly innovative green ones.
CSR initiatives being spearheaded by Sauradip Chemical Industries in FY 2022-23 and plans for FY 2023-24?
Sauradip has been at the forefront of many CSR initiatives. The company has donated to ICT - Institute of Chemical Technology for renovation of the BTech Undergraduate Laboratory in the Department of Polymer and Surface Engineering. The company has also introduced "Sauradip Chemical Industries Visiting Fellowship" in the Department of Polymer and Surface Engineering of ICT. We also took up the cause of building a Bhojanshala at Lonavala. It has a 6,000 square feet hall and a 2,000 square feet kitchen area with a capacity of 300 people who can dine at a time, and was completed in February, 2022.
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