Dewang Garg, MD, Trio Chemicals
Dewang Garg, Managing Director, Trio Chemicals & Allied Products has more than 25 years of experience in handling production, operations and product development. Being associated with the family business, he has led Trio Chemicals to achieve accelerated growth in Defoamers and Specialty Chemicals manufacturing. He holds a degree in Commerce from Mumbai University and is an active member of BNI – Business Network India.
Speaking to Pravin Prashant, Editor, Indian Chemical News, Dewang Garg spoke about the size of the market, India's growth story and forecast, new innovations, capex investment and USP. Excerpts of the interview:
In terms of revenue and profit, how has Trio Chemicals performed in FY 2019-20? What 's the forecast for FY2020-21?
We did very well in the initial three quarters of FY 2019-20 but due to Corona spreading all over India, the fourth quarter was not as expected. In terms of revenue generation, we did approximately 25% growth over last year and maintained profitability at par with FY 2018-19.
Talking about FY 2020-21, we are hopeful to touch a growth of approximately 40-45% as Trio has ventured into organic food exports especially to USA and European countries. There is a good growth potential in the organic food sector and Nutra Trio will be touching a revenue of around Rs. 10 crore in FY 2020-21 i.e. in the first year of its inception.
What is the break-up of revenue with respect to domestic and exports in FY 2019-20? How have you performed in the export market and countries where you have done reasonably well?
The ratio of domestic and export is 60:40. Our main export was generated in the food sector where we did almost 40% of our turnover. The main countries are America and European countries. Middle East being a good market for chemical and food items, our focus in FY 2020-21 will be to provide defoamers and food items in these markets.
What is the market size of Antifoams/Defoamers and Performance Additives globally and India in FY 2019-20? What's the growth rate of these products in FY 2019-20? What's the forecast with respect to market size in FY2020-21 and why?
The global market was valued at US $5.81 billion in FY 2019-20 and is expected to be US $6.08 billion in 2020-21 by maintaining the predicted CAGR of 4.3% globally due to the increasing demand of simethicone in the pharma sector.
Are you developing any new product/products in the Antifoams/Defoamers and Performance Additives category? Where do you see the usage of this product?
Yes, innovation is an ongoing process and we believe innovation is the key to growth. We are now working on an innovative defoamer for the paper industry. Total industry size for paper defoamer is 800 MT per annum and we are expecting to get at least 15% market share.
The company has recently launched sanitizer and disinfectant products in the Indian market. What's the response for this new category of product in India?
Launching the sanitizer and disinfectant products was like picking the low hanging fruits during this pandemic. Now we see everyone, say paint manufacturer and chemical dealer selling sanitizer and disinfectant products. So it's going to be a commodity market. Our core business is defoamer and we will continue to focus on the growth of our defoamer business and also for the growth of Nutra Trio.
Do you have any plans of expanding or setting up a new plant apart from the one which you have in Sarigam, Gujarat? What's the maximum manufacturing output of Sarigam plants for Antifoams/Defoamers and Performance Additives?
Yes, we can produce approximately 6,000 tons of defoamers per annum and we can produce even higher quantities in the existing facility. We have already acquired a bigger warehouse in Vapi that will ease the process of transportation and we will be able to handle our logistics in a more efficient way. We have also shifted our corporate office to a new and bigger place. The work of setting up a new and bigger lab is ongoing which will allow us to have more focus on the innovation and application development of the products.
Are you Aatmanirbhar with respect to Antifoams/Defoamers and Performance Additives category of products manufactured in India. If not, do you have any plans of setting up a plant for making the above raw materials?
A big yes to Aatmanirbhar. We manufacture and we can custom make any type of defoamer, so we can proudly say that we are Aatmanirbhar with respect to Antifoams/Defoamers in India.
What's the USP of Trio Chemicals product in Antifoams/Defoamers and Performance Additives?
Trio is strategically situated in the central place and hence is closer to all the customers. The USP of our products is: Use of high quality; raw material cost; excellent performance; various pack sizes; and easy availability.
Subscribe To Our Newsletter & Stay Updated