Anand Desai, Managing Director, Anupam Rasayan India
Anupam Rasayan India’s capex is going on as per plan. In the last nine months, the company has invested over Rs. 100 crore in various capex projects, including brownfield expansions, R&D facilities, and solar projects. For the next year, the company would be deploying Rs. 300-350 crores.
2023 global trends in agrochemicals, personal care, pharmaceuticals, pigments, specialty dyes, and polymer additives?
In 2023, the chemical industry is in a strong financial position. The growth of all the segments that we cater to is driven by increasing demand for certain specialized chemicals. The growth of agrochemicals is attributed to the increasing demand for crop protection products in the field of agriculture across the globe. Similarly, personal care is focused on innovative active ingredients and natural and organic products. Increasing demand for advanced drugs and demand for active pharmaceutical chemicals are major growth drivers of the pharma market. Pigments, specialty dyes, and polymer additives are witnessing demand from across allied sectors like aerospace, defence, aviation, textiles, and paints & coatings across the globe. Overall, the global trends in chemicals will be positive and sustainable.
2023 global trends in custom synthesis manufacturing in India?
One of the major trends in custom synthesis manufacturing in India is the increasing focus on innovation. As customers become more demanding and competition intensifies, manufacturers are investing in research and development to create new and improved products. This trend is driving the adoption of advanced technologies, such as flow chemistry and photochemistry, to accelerate the development process and enhance safety standards.
Another trend in custom synthesis manufacturing in India is the growing emphasis on sustainability. With an increasing number of customers demanding eco-friendly products, manufacturers are adopting sustainable practices and materials to meet this demand. This includes the use of renewable energy sources, such as solar power, and the development of biodegradable materials that reduce environmental impact.
In addition to these trends, there is also a growing demand for flexibility in custom synthesis manufacturing. Customers are looking for manufacturers that can provide customized solutions that meet their specific needs and requirements.
Overall, the global trends in custom synthesis manufacturing in India reflect a growing focus on innovation, sustainability, and flexibility. As the industry continues to evolve, we can expect to see continued investment in research and development, as well as the adoption of advanced technologies and sustainable practices. Manufacturers that can provide customized solutions and flexible manufacturing processes will be best positioned to succeed in this dynamic and competitive market.
How has Anupam Rasayan performed during FY2022-23? Plans for FY 2023-24 for Life Sciences related Specialty Chemicals and other Specialty Chemicals?
Despite macro challenges and shut down of one of the units we have still delivered a good set of numbers till 9M FY2023. We have a strong product pipeline to be launched in coming quarters and we remain focused on strengthening our business development team. Going forward, our revenue growth will be driven by ramping up current products to new/existing clients and through higher wallet share through new product launches. In FY24, we are also planning to launch 6-8 new molecules in life science and other specialty segments.
Revenue mix is 62:38 with respect to outside India and within India. Do you see any change in FY 2024-25?
We expect export revenue to increase as we are signing a lot of new contracts with global MNCs, and recently we have also signed two new contracts with Japanese MNCs. So, we expect this ratio to be 70:30 going forward with majority revenue coming from Japan, Europe, and North America.
Have you completed the integration of Tanfac? How do you plan to leverage Tanfac with existing and future expansion plans in 2023?
Integration of verticals like Finance, HR, and IT has been completed. Tanfac acquisition would certainly continue to play a key role in providing uninterrupted access to raw material required for fluorination like HF and KF. This would support future expansion of product series under fluorination, will bring down dependency on overall import and also will create a sustainable supply chain.
The company has a strong order pipeline in FY 2022-23. What is the order pipeline till date and how do you plan to move with respect to its execution in FY 2023-24?
Yes, we have signed contracts and LoI (Letter of Intent) worth Rs. 2,620 crore in FY22. We have also signed two contracts with one of the leading European crop protection companies for supplying two niche life science-related specialty chemicals in Q3 FY23. Recently, we announced signing a letter of Intent worth revenue of US $120 million (Rs. 984 crores) for the next 6 years with one of the leading Japanese chemical companies.
We are starting to see the trend of India being chosen as the preferred manufacturing base for strategic chemical products. We plan to add a few more niche products in Anupam’s product portfolio in the near term as part of Europe plus one strategy that will help us to add more clients from Europe, America, and Japan.
The company has deployed Flow Process technology but is now embracing technologies like Photo and Vapor Phase. How will this technology help the company?
The adoption of new technologies is always an exciting opportunity for companies like ours to enhance our operations and drive innovation. In this case, the deployment of Photo and Vapor Phase technologies is expected to bring numerous benefits to us. One of the primary advantages of Photo and Vapor Phase technologies is their ability to increase efficiency in the manufacturing process of the specialty chemicals we provide. These technologies allow for more precise and controlled reactions, reducing the amount of time and resources needed to produce the desired outcome of these chemicals. This can result in cost savings for the company and increased productivity.
In addition to improved efficiency, these technologies can also enhance product quality. The precise control offered by these technologies can lead to more consistent and reliable results, ensuring that the final product meets or exceeds customer expectations. This can result in increased customer satisfaction and loyalty.
Another benefit of these technologies in our segment is their environmental friendliness. These technologies typically use less energy and generate less waste than traditional manufacturing processes, resulting in a smaller carbon footprint. This can help the company to meet sustainability goals and appeal to environmentally-conscious consumers. The adoption of new technologies can also improve a company's competitiveness in the market.
Capex invested in FY 2022-23 and projects where investment was made? Capex plans for FY 2023-24? Focus on the new plants which are coming up in Jhagadia and Sachin?
Our capex is going on as per plan. In the last nine months, we have invested over Rs. 100 crore in various capex projects, including brownfield expansions, R&D facilities, and solar projects. We expect this brownfield expansion project of Rs. 670 crores to be completed as per the planned schedule and this would provide enough capacity for growth in the next three to four years. For the next year, we would be deploying Rs. 300-350 crores.
On the R&D front, the company is focusing on green manufacturing and green growth. Likely impact of innovation on Anupam Rasayan in short term and long term?
We have adopted a holistic approach to sustainability that encompasses every aspect of its operations, including our research and development (R&D) approach. In our R&D approach, we place a strong emphasis on developing sustainable and environmentally friendly chemical processes. We have invested in state-of-the-art technologies that enable us to minimize waste, reduce energy consumption, and lower our carbon footprint.
We have also implemented green chemistry principles in our R&D activities. This approach involves designing chemical processes and products that are safe, efficient, and environmentally friendly. By adopting this approach, our aim is to minimize the use of hazardous chemicals and reduce the generation of toxic waste.
In house R&D located at Sachin Unit 6 has played a key role in expansion of commercialized portfolio. How many products were commercialized in FY 2022-23 and plans for FY 2023-24?
During the first 9 months (9M FY23) of the year, four numbers of products were commercialized and the final product count has reached 50. We have around 90 products that are under the pipeline at the R&D and pilot plant, we are planning to commercialise 6-8 new molecules every year.
Initiatives for enhancing process safety across all processes to make operation intrinsically safe?
First let’s start with manufacturing. This area is mainly focused on reducing process risks. Now, since we aim to reduce the risk of malfunctions, along with our in-house safety standards we also aim to achieve global reputed safety standards.
Our in-house safety standards are quite comprehensive as we conduct various tests at all stages of product development. This means right from the R&D laboratory Level to the Pilot test level, these tests help us collect and evaluate the safety data of a product which is then converted to an SOP for manufacturing prior to the product being taken into the plant for commercial production.
We also follow safety measures in transportation and storage processes too. We follow Chemical Transportation Risk Assessments where the chemical handling and movement guidelines/procedures are prepared along with emergency management. Additionally, we have also invested in state-of-the-art safety equipment and infrastructure to ensure that its operations are intrinsically safe. We as a company aim to not only provide a safe working environment but also be leaders in the innovation of safety processes.
Sustainability roadmap of Anupam Rasayan and when are you planning to become Net Carbon Zero? What are your sustainability plans?
At Anupam Rasayan, we are aware of the effects of climate change and thus make an arduous effort to promote sustainable operations and reduce our environmental footprint. We have set a target of a 10% absolute reduction in GHG emissions by 2030.
Being in alignment with our corporate philosophy of ‘Sustainable Manufacturing and Consistent Growth’, we are transparent with our sustainable efforts and roadmap. This indicates our long-term, medium-term and short-term actions and non-financial goals that help increase our company’s sustainability through value-driven management.
Waste management systems, investing in renewable energy resources and increasing training hours of employees are some of our goals going ahead. Our roadmap also helps us identify key risks, mitigation strategies, and priority areas.
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