Allocated Capex of Rs. 150 crore for Palghar and Egypt facilities: Krishna Dushyant Rana, CMD, Platinum Industries

We are poised for further growth, backed by our strong market presence, operational excellence, and commitment to sustainability

  • October 03, 2024

In an exclusive interview with Pravin Prashant, Executive Editor, Indian Chemical News, Krishna Dushyant Rana, Chairman & Managing Director, Platinum Industries Ltd. shared his views on the current trends as well as company’s expansion plan. Excerpts of the interview:

Products manufactured by Platinum Industries at Palghar facility? Present capacity with respect to PVC additives, CPVC Additives, and others?

Platinum Industries’ existing manufacturing facility in Palghar, has an installed capacity of 36,000 tonnes per annum, covering PVC stabilizers, metals soaps, CPVC additives, and lubricants, emphasizing the company’s production strength. Our commitment to operational efficiency through streamlined manufacturing processes has helped us offer better value to our customers.

Market share that Platinum Industries commands with respect to PVC additives and CPVC additives and how are you planning to increase your market share in India?

We are the third largest player in the domestic PVC stabilizer market and Platinum Industries currently commands around 13% of market share in India as per the CRISIL report.

Our growth strategy is centered on enhancing research and development capabilities to bring cutting-edge, environmentally compliant solutions to the market. We are committed to staying ahead of industry trends by developing a range of high-performance products that align with evolving regulatory standards and customer needs.

To further increase market share, we are also actively increasing our production capabilities, leveraging strategic partnerships, and establishing robust distribution networks.

By prioritizing sustainable solutions and customer-centricity, we aim to strengthen our position in the PVC and CPVC additives industry while delivering consistent value to our stakeholders.

Size of PVC Stabilizer market in India and globally? Competitors in the Indian market and what's your USP?

The global PVC stabilizer market was valued at US $1,397.8 million in 2022 and is expected to witness a compound annual growth rate (CAGR) of 5.09% by 2030. In India, the market is projected to grow at an even faster rate of 7% CAGR, driven by rising demand in construction, packaging, and electronics sectors.

At Platinum Industries, our unique value proposition lies in our relentless focus on innovation, quality, and customer-centric solutions. As the only publicly listed PVC additives and stabilizers manufacturer in India, we leverage advanced R&D to deliver superior formulations that meet evolving industry demands.

We are poised for further growth, backed by our strong market presence, operational excellence, and commitment to sustainability.

Our ability to provide tailored solutions, backed by personalized support and customization, distinguishes us from competitors, ensuring that we consistently exceed client expectations and lead the market forward. 

Platinum is planning to expand its Palghar facility. Additional capacities that you are planning to build in different phases and products that you are planning to manufacture? When are you planning to operationalize two phases?

The new greenfield project in Palghar, is in close proximity to our existing manufacturing facility in the area. The new facility in Palghar plant represents our dedication to pioneering safer, eco-friendly alternatives in the industry.

It will focus on producing 60,000 tons per annum of lead-free stabilizers and associated products, with the project being executed in two phases. Phase 1 is anticipated to become operational by Q4 of FY 2024-25. Further updates on Phase 2 can be shared once Phase 1 is successfully operational.

You are also planning a greenfield facility in Egypt to manufacture PVC stabilizers and CPVC additives. What's the capacity of the plant and when are you planning to operationalize different phases?

Egypt stands out as one of the largest consumers of PVC stabilizers in the African continent, yet it lacks local manufacturers for these critical components. The growing demand for stabilizers in North Africa and the Middle East, positions Egypt as a strategic hub.

Our new manufacturing facility in Egypt is set to operationalize in the next four quarters. The total planned capacity of the plant in Egypt is 30,000 tons per year, with Phase 1 focusing on 12,000 tons per year, expected to be operational by Q2 of FY 2025-26.

The Egypt plant is set to commence operations in the first half of FY 2025-26. This will enable us to enhance our supply chain efficiencies, reduce logistical costs, and provide timely and competitive products to these rapidly growing markets.

How will Palghar and Egypt expansion help in terms of product and geographic expansion?

Establishing the new facilities in Palghar and Egypt represents a strategic leap in both product and geographic growth for Platinum Industries. We anticipate this will play an increasingly pivotal role in our global revenue mix in the coming years.

The Palghar facility will enhance our domestic production capacity and enable us to innovate across our product portfolio. It positions us to meet growing demand in India while supporting sustainable growth in key markets.

Presently, the company supplies products to over 30 countries. Countries which you are targeting in FY2024-25 from an export perspective and how are you planning to make inroads?

The Egypt expansion, on the other hand, is pivotal for increasing our footprint across the Middle East and North Africa (MENA), European, and Latin America regions. This facility not only brings us closer to our customers but also allows us to serve European markets more efficiently.

Our approach to making inroads includes building strong local partnerships, leveraging our R&D for tailored solutions, and expanding our distribution networks to ensure that Platinum’s products are accessible, reliable, and innovative in every market we serve.

This global push reinforces our long-term vision of becoming a dominant player in the additives and stabilizers sector, both in India and worldwide.

90% of your revenue comes from India. How are you planning to grow the India market?

India continues to remain at the core of our growth strategy. To further accelerate our growth in this critical market, we are focused on expanding our product portfolio, enhancing customer-centric solutions, and a disciplined approach to cost management to optimize our production processes.

With increasing investments in R&D, we wish to introduce new and innovative products that address the evolving needs of the Indian market, especially in high-demand sectors such as agriculture, infrastructure, healthcare, and packaging. A significant highlight of this fiscal year has been our focused drive towards sustainability, particularly through the development and commercialization of lead-free stabilizers.

As regulations tighten around the use of hazardous substances, and as industries shift towards more environmentally friendly alternatives, our lead-free stabilizers have emerged as a critical component of our long-term growth strategy.

Our focus also continues towards building long-term relationships with our customers, providing tailored solutions that deliver value and helping them achieve their business goals. Our operational efficiency will continue to be the cornerstone of our success in the future as well.

We have implemented advanced process control systems across our plants, leading to an 8% reduction in energy consumption despite a 10% increase in production volumes. This achievement not only enhances our bottom line but also aligns with our broader commitment to sustainability.

Capex investment for FY 2024-25 and FY 2025-26 and projects where the company is planning to invest?

The company has outlined a Capex investment of Rs. 150 crore (as detailed in our DRHP documents). This investment will primarily focus on expansion of our facilities in Palghar and Egypt, which are the major projects for FY 2024-25 and FY 2025-26. In addition to these projects, we will continue to invest in smaller initiatives throughout our operations to drive efficiency and growth.

Platinum is focusing on three fronts - Expanding lead free capacity; automating operations; and introducing energy efficient processes to reduce production cost. What's the update on all these fronts?

At Platinum Industries, sustainability is a principle that permeates every facet of our operations, from manufacturing processes to our comprehensive product offerings. More than 70% of Platinum’s sales of stabilizers for PVC are lead-free today. As we continue to grow, we are significantly scaling up our lead-free production capabilities in response to growing market demand for sustainable and eco-friendly alternatives.

We are implementing energy-efficient technologies to optimize resource utilization and reduce production costs - aligning profitability with environmental responsibility. We will continue to make substantial investments in streamlining operations to enhance efficiency, and minimize downtime.

This will significantly improve output quality, consistency, and operational agility, allowing us to meet the demands of a rapidly evolving marketplace with precision and speed.

Products that you are developing in R&D labs which will help in introducing new products every 6-8 months? 

Our R&D facility in Dhansar, Palghar, is the hub of our innovative endeavours. This year we have successfully commercialized two new eco-friendly product lines, including our lead-free stabilizers, which have already begun to gain significant traction in the market.

Our lead-free stabilizers, which have seen a 20% increase in production capacity this year, are not just a response to regulatory demands but also reflect our commitment to leading the market in sustainable solutions. These stabilizers offer our customers safer, more sustainable options without compromising on performance—a value proposition that is increasingly becoming a differentiator in the marketplace.

In addition, our R&D center is also actively developing new oleochemical-based products and CPVC additives, aligned with our business growth strategy. These innovations will allow us to introduce new products to the market, reinforcing our commitment to continuous improvement. The successful integration of these products into our portfolio marks the beginning of a broader transition toward sustainability that is materializing across the globe.

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