Sunil Chari, Co-Founder & Managing Director, Rossari Biotech
The company has initiated the implementation of SAP ERP across Rossari Group and completed SAP Implementation by April 2023
2023 global trends in Home, Personal care and Performance Chemicals (HPPC); Textile Specialty Chemicals (TSC); and Animal Health and Nutrition (ANH)?
The global specialty chemicals market size was valued at US $616.2 billion in 2022 and is anticipated to witness a compounded annual growth rate (CAGR) of 5.1% from 2023 to 2030. The growth of specialty chemicals is also attributed to the growing demand from construction, water treatment, pharmaceuticals, food & feed additives, and flavors & fragrances, among others. The demand for flavoring agents has increased as processed food and beverages have become more popular in developed nations. Further, rising customer preference for novel flavors and fragrances in food products is estimated to contribute to the market growth.
Home and Personal Care Chemicals registered a 5% CAGR in 2022 to 2023, HPCC sector is the fanciest growing sector in the modern world, Textile Specialty Chemical is anticipated to observe a CAGR of 4.7% from 2022 to 2030; and Animal, Health and Nutrition is expected to register a CAGR of 8.8% from 2023 to 2030.
Key milestones achieved by Rossari Biotech during FY 2022-23? Performance of HPPC, TSC, and AHN in FY 2022-23 and plans for FY 2023-24?
One of the key milestones achieved during the year was unlocking the synergies through our acquisitions of Unitop Chemicals and Tristar Intermediates along with the investment in Romakk Chemicals which were done in FY 2021-22. This has not only expanded our capacities but has also opened up opportunities for technology and knowledge-sharing, cross selling of products, development of new product lines in adjacent Specialty Chemicals divisions as well as expansion of customer base and target geographies. Our acquisitions are expected to strengthen Rossari’s position in the Indian Specialty Chemicals space and unleash our full potential.
During FY 2022-23, our Textile division witnessed some headwinds due to subdued demand on the back of the ongoing challenging operating environment. Our HPPC and AHN division continued their growth momentum on the back of new products, customers, and geographies.
We remain optimistic that a stabilized macroeconomic environment will drive long-term sustainable growth and enable us to deliver a stronger performance in the future. We have been prudently expanding our business with a focus on products with better margins. We are now seeing some stabilization in the market. As the operating environment stabilizes, we believe we are well-equipped to pursue high-growth opportunities, given our comprehensive product offerings, flexible capacities, and R&D capabilities and we look to continue with our growth plans in the coming quarters.
Revenue mix for within India and outside India in FY 2022-23? Do you see any change in FY 2024-25?
About 75% of our total revenue is contributed by customers within India and 25% by customers outside India. We are continuously expanding our footprints globally across all our business verticals. Going forward we expect that contributions from customers outside India will show growth momentum.
How has synergistic acquisitions and strategic investments helped Rossari Biotech? How are you planning to leverage it moving forward?
These acquisitions have ensured a greater synergy and additional dimensions like larger international exposure, pooling of related technologies which increased our technical capabilities, and an expanded product portfolio. The acquisitions have further strengthened our positions in Home, Personal Care, and Performance Chemicals with addition of new sectors of Agrochemicals, Oil & Gas, Preservatives, and Aroma Chemicals. Going forward we are planning to further scale up the cross-selling opportunities backed by an enhanced product portfolio, increase our presence in the new and existing geographies, access new technologies, and create sustainable value for all stakeholders. We envision our acquisitions to provide us with greater knowledge, expertise, and complementary growth dimensions for us to prosper together.
Are you looking at any new acquisitions/strategic investments in FY 2023-24? Verticals where you are focusing?
We keep exploring acquisitions/investment opportunities within our core chemistries.
Capex investment incurred in FY 2022-23 and projects where it was invested? Capex plans for FY 2023-24?
Our Dahej facility became fully operational in FY 2021-22. No major capex incurred in FY 2022-23. We have planned some small Capex in FY 2023-24 for projects in AHN and Textile division.
Company is focusing on green & sustainable chemical solutions. How will this impact the company's topline and bottomline and new areas that the company is focusing on?
Sustainability for us is a way of creating a massive change. It is about making choices keeping long-term perspectives of business, society and the environment in mind. We aim to deliver sustainable products to our customers backed by a sustainable business model. Our dedication toward sustainability is reflected in our customised, environmentally responsible, and cost effective solutions on the operational front that we constantly keep working on. As a domestic market leader in creating environmentally friendly products across all categories, we have campaigned for sustainable procedures and green chemistry as an organisation right from our outset. We believe this will be an important growth lever for us in the future as sustainable competitive advantage takes centre stage.
In surfactants, our focus continues to be on Bio-degradable and greener products. We are also looking at Bio-surfactants where SOPHOROLIPID and RHAMNOLIPID are the focus areas. In Agro, the focus is on developing surfactant formulations which are greener and also developing formulations which are based on a combination of technicals.
How is the company strengthening its in-house R&D capabilities to expand innovative and customized solutions for customers? New products expected from innovation funnel in FY 2023-24?
We are constantly trying to innovate and develop products that meet our customers’ evolving requirements without disturbing the balance between the business, society, and environment. We are targeting new product formulations and the adoption of advanced technologies to create sustainable value. Rossari believes in being innovative and agile and providing customised services to customers. Our knowledge of our four pillars of chemistry and innovative product formulation is what has kept us ahead of the curve. Consequently, our R&D lab at IIT Bombay focuses on product development in these lines. With the acquisitions, we have strengthened our R&D capabilities with the addition of a new agro lab at IIT facility in addition to the existing R&D facility at Unitop, Dahej.
Products under development include: Enzymatic Bio scouring - To drive the sustainability concept and reduction with utilities; One bath dyeing of Polyester/cotton blends, saving time and increasing productivity; Eco friendly substitute of Soda ash, a big boon to the industry reducing the BOD/COD levels drastically; Plant based softener; Antibiotic replace growth promoters; and Vitamin encapsulation products.
Level of automation and digitalization carried out in FY 2022-23? How do you plan to move ahead on brownfield and greenfield projects in FY 2023-24?
In FY 2022-23, the company has initiated the implementation of SAP ERP across Rossari Group and completed SAP Implementation by April 2023. This will help us in better integration within entities, better planning & reporting, and enabling faster decision making. Our Dahej facility which got operational in FY 2021-22 is a state of art, highly automated facility. Going forward, we will endeavour to bring in newer technologies and high levels of automations in all our new projects.
Key sustainability initiatives started by the company?
At Rossari, we believe sustainability is the key to a better and safer future and we strive to take a holistic approach towards it. This approach testifies Rossari’s commitment to providing a balanced tomorrow, built on a sustainable environment through strategic business activities. Some of our initiatives undertaken in this direction include: Introducing green chemistry through relentless efforts of ‘Greenovation’; Enhancing human wellness with innovative solutions; and addressing environmental issues through sustainable business activities by installing solar capacity in the Silvassa Plant of 50 KWP. The company started using ‘Bio-Fuel’ instead of ‘Light Diesel Oil’ which is used for Boiler, Thermic fluid heater, and Incinerator. Further we are planning to set up 100 MV solar panels across our plants and have installed aircon devices to reduce energy consumption in air conditioning units. Further, we are also planning to plant 5,000 trees in the specified area allocated by GIDC at Dahej.
When is Rossari Biotech planning to achieve Net Carbon Zero and milestones set up by the company?
As a responsible corporate citizen, we have implemented environmental management systems across our organisation as a step towards environmental conservation. We examine the environmental impact of all our actions on a regular basis and create continuous improvement objectives and targets. These are closely monitored on a regular basis to ensure their achievement at the individual and corporate levels.
Some of our initiatives undertaken in this direction include: Moving towards sustainability by ensuring carbon abatement and absolute carbon reduction; No releasing of hazardous emissions or pollutants at both Silvassa and Dahej plants throughout the production process; Both facilities conform to Zero Discharge of Hazardous Chemicals (ZDHC) foundation and Global Organic Textile Standards (GOTS); and The stack monitoring data represent low carbon footprint of GHG generation at production sites.
CSR projects executed in FY 2022-23 and plans for FY 2023-24?
In FY 2022-23, the company has majorly focused its CSR activities towards the area of medical healthcare and support and has contributed to Rotary Trust Mulund South which undertakes Pediatric Heart surgeries for underprivileged children born with congenital heart diseases. The other major project of the company was contribution to Tata Memorial Hospital for marginalized patients suffering from Hematolymphoid Malignancies which are primary cancers of blood, bone marrow, and lymphoid organs associated with high mortality.
The company also contributed to Rotary Club of Deonar who has arranged to set up about 10 MultiPara Monitors in the neonatal unit of Lokmanya Tilak Municipal Medical College and General Hospital (Sion Hospital). The Neonatal Intensive Care Unit (NICU) of this Department provides yeoman services to sick and preterm newborn babies born in the hospital as well as those referred from outside for specialized care.
For FY 2023-24, we continue to focus on medical healthcare and support, education support, human life upliftment and support, animal health and welfare, sports support, protection of heritage, art and culture, and environment protection in consultation with the CSR Committee. The CSR Committee is actively involved in the selection of the project and evaluating its impact on the society as a whole. For FY 2023-24, the company will ensure that the CSR funds are utilized in an optimum manner that uplifts the weaker sections of the society.
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