How would you explain the emerging trends in the chlor-alkali business in India and globally? And how prepared Epigral is to tap the growth opportunity?   

We see strong potential in the chlor-alkali industry due to its applications across various sectors that are directly linked to daily consumption. Both globally and in India, we anticipate that the demand for chlor-alkali products will remain robust and gradually increase each year. Epigral, with its capacity for caustic soda, is well-positioned to meet this growing demand.  

Additionally, we have evaluated various downstream co-products, such as chlorine and hydrogen, to ensure we operate as an integrated player in the industry. Epigral has strategically chosen co-products that we can consume in our operations, which has improved our efficiency. By selecting import-substitute products that utilize these co-products, we have also contributed to the nation by reducing dependency on imports, aligning with the Government of India's initiatives of Atmanirbhar Bharat and Make in India. 

What are the three main challenges that the Indian chlor-alkali sector is facing and what could be the suggested solutions to overcome these challenges, according to you? 

In India, the chlor-alkali or caustic soda industry faces the challenge of producing chlorine alongside caustic soda. Instead of viewing this as a setback, we identified a range of products that utilize chlorine, which has strengthened our profit and loss statement as well as our balance sheet. By turning this challenge into an opportunity, we have enhanced our company's performance. Another significant challenge for the caustic soda industry is the high cost of electricity required for production. To address this, we have installed our own power plant, which has improved our operations and overall efficiency, benefiting the company. 

Could you elaborate on the strategic initiatives Epigral undertook in 2024 to enhance its market position and operational efficiency? 

We periodically evaluate our strategic initiatives and continuously evolve better. Specifically, in 2024, we commissioned an additional capacity of CPVC Resin of 45,000 TPA, which increased our total capacity to 75,000 TPAs, the world's largest capacity in a specific location. Additionally, we commissioned the CPVC Compound facility, and hence, we will now cater both resin and compound to pipe manufacturers based on their needs. During the year, we have set up a pilot plant for making pipes at our facility to provide consistent quality and be a reliable partner. In the last fiscal year, Epigral further announced the expansion of our CPVC Resin and epichlorohydrin capacity; we are doubling both capacities, considering the growth opportunities we see for these products.  

Epigral has raised funds for the company from the capital market through QIP, where institutional investors participated and showed confidence in the company's vision. With these funds, we strengthened our balance sheet and it improved our rating from Crisil AA— to Crisil AA. 

The company reported a 37 per cent revenue growth in the first nine months of FY2025, driven by a 15 per cent increase in sales volume from high-value derivative and specialty products. What strategies contributed to this significant growth? 

Since the financial year 2018-19, we, at Epigral, have made a strategic decision to diversify our business by leveraging chlorine and hydrogen as co-products. As part of this strategy, we have ventured into the production of CPVC, epichlorohydrin, chloromethanes, and hydrogen peroxide. This diversification has enabled us to serve various industries domestically while providing high-quality products that substitute for imports. As a result, the company has become more resilient compared to others in the industry during periods of economic slowdown. This strategic shift has significantly contributed to the company’s overall performance. 

Key projects being rolled out by Epigral to achieve their growth in coming years? Can you share an update on the progress so far? 

This year, various capital expenditures (capex) we undertook in the past have begun to yield results and will continue to contribute to the coming years. In FY2024, we successfully commissioned a CPVC Resin plant with a capacity of 45,000 tons per annum (TPA), a CPVC Compound facility with a capacity of 35,000 TPA, and a chlorotoluenes value chain facility. These expansions, along with other capacities commissioned in previous years, will positively impact on our business performance this year and next year. 

We have also announced plans to increase our CPVC Resin and epichlorohydrin capacities for further growth. These additional capacities are expected to be commissioned in FY2027, and we anticipate they will start contributing from that time onwards, with an expectation to reach optimal performance by FY2028. For future growth, we have already acquired around 100 acres of land close to our current plant. Our focus will be on developing new chemistries that will drive the company’s growth. 

As a growth-focused company, we will carefully plan and allocate our capital expenditure to ensure robust growth in the coming years. 

Could you share an overview of the major Capex projects Epigral has undertaken recently, including their objectives and expected timelines? 

Recently, the company announced plans to expand its capacity for CPVC Resin by 75,000 TPA and epichlorohydrin by 50,000 TPA. These expansions are driven by anticipated growth in demand both in India and globally. Additionally, they will enhance the captive consumption of chlorine and hydrogen, further strengthening our integrated complex. The projects are expected to be commissioned in the first half of FY2027. With this expansion, we will become the largest manufacturer of epichlorohydrin in India and the largest manufacturer of CPVC Resin in the world. 

How has the commissioning of the additional 45,000 TPA CPVC Resin capacity in April 2024 impacted your production capabilities and market reach? 

It has allowed us to produce more to meet the domestic demand for CPVC Resin and increase our presence and market share among various customers. As the demand further increases we are ready with the capacity to meet the same. 

What has been the effect of the new CPVC compound facility commissioned in June 2024 on your product offerings and customer satisfaction? 

The CPVC Compound facility has allowed us to serve all types of CPVC pipe manufacturers. Previously, we could only cater to selected manufacturers, but now, thanks to our presence in the compound, we can fulfill the needs of all pipe manufacturers. Additionally, we have recently obtained NSF certification for our CPVC resin and compound, confirming that our products are suitable for drinking water purposes. This underscores our commitment to quality and further strengthens our brand. 

With the inauguration of your first R&D Centre in Ahmedabad in November 2023, what key projects or innovations have emerged, and how do they align with Epigral's long-term goals? 

The R&D center plays a crucial role in guiding integrated chemical manufacturers like Epigral. Our R&D center is working further downstream of the chlorotoluenes value chain that we recently commissioned. In addition, the center is focused on improving the processes for our existing products and enhancing overall efficiency. The team is also engaged in developing new molecules for the specialty business. 

What digital transformation/automation initiatives has Epigral implemented in 2024 to enhance operational efficiency, supply chain management, and customer engagement? 

Improving operational efficiency is an ongoing process at Epigral, and we have implemented several enhancements at the plant level. These efforts are evident in our operating performance and are directly reflected in our profit and loss statements. The company has deployed various tools and digitized multiple processes to monitor operations within the plant. With our state-of-the-art facility, we have focused on enhancing safety, which directly contributes to continuous improvements in performance and efficiency. 

The commissioning of an 18.34 MW Wind Solar Hybrid Power Plant in Q1 FY24 showcases Epigral's commitment to sustainability. How has this initiative influenced your environmental footprint and operational costs? 

At Epigral, we are continually working to improve our footprint and protect the local environment surrounding our production plant. We commissioned an 18.34 MW wind and solar power plant over a year ago, and as a result, approximately 8 per cent of our power requirements are now met through green energy. This initiative has not only contributed to environmental preservation but has also been cost-effective, as it is cheaper than conventional grid electricity. 

Your current phase of expansion/diversification is coming to its completion in 2027. What is the strategy for the next phase of expansion/diversification? Are you looking at new and emerging segments? 

As a leading integrated chemical company, we are continuously researching various formulations that are feasible for the Indian market. Epigral, being a domestic-focused company, is looking at the growing demand for qualitative products for domestic consumption and considering the increase in household spending power. We are evaluating various projects where the demand for such products is going to increase substantially in the long term. 

Where do you want to see Epigral in 2032?  

In the long term, Epigral aims to expand its product portfolio to serve other industrial segments. By 2032, we want to be recognized as the leading integrated multi product chemical player globally, allowing us to add value to our stakeholders.