VINATI SARAF MUTREJA

INTERVIEW | [ 83 ]

EXPECTING 50% SALES GROWTH IN FY22

The company has announced a Capex of Rs. 315 crore for new products thereby looking at an addressable market of more than Rs. 3,000 crore

VINATI SARAF MUTREJA

MD & CEO VINATI ORGANICS LIMITED Vinati Organics is the world's largest manufacturer of IBB and ATBS. What's the next set of products where you are looking at global leadership and how?

We have announced a Capex of Rs. 250 crores in Veeral Organics Private Limited (VAPL), a 100% subsidiary of Vinati Organics Limited (VOL), for manufacturing of niche specialty chemicals. This Capex would give us 5-6 new products which would find its usage across various sectors like pharmaceuticals, perfumery, in applications such as monomer additive, and as a solvent for catalysts.

The company has also announced a Capex of approximately Rs. 65 crores towards a couple of niche specialty chemicals which will be intermediates in agrochemicals. The addressable market size of all these products is more than Rs. 3,000 crores and we expect total sales to be approximately Rs. 320 crores.

What's the update on VAPL merger with VOL?

Apart from this, the Board had given its approval for amalgamation of VAPL into VOL and we have filed the application with NCLT and are now awaiting their order.

VAPL is into manufacturing Antioxidants (AO). These Antioxidants are plastic additives which inhibit degradation of plastic. The acquisition of VAPL is a forward integration for VOL as Butyl Phenols will be the key raw materials in the manufacture of these AO’s. After the acquisition, VOL will be the largest and the only integrated manufacturer of these AO’s in India.

This acquisition will allow VOL to add a new revenue stream of specialty chemicals which have good growth potential both globally as well as domestically. The addressable market for VAPL is in excess of Rs. 10,000 crores and VAPL could generate sales exceeding Rs. 700 crores.

How has the company performed in terms of revenue and profit during FY 2021-22?

Overall we expect to clock 50% growth in sales in FY22 as compared to FY21 and expect the EBITDA margins to be in the range of 27 - 30%.

Are you planning to expand the manufacturing facility in Raigad and Lote? If yes, what's your expansion plan?

We are expanding our Butyl Phenol capacity by 15,000 MT at Lote which will feed our captive consumption towards manufacturing antioxidants.

How is the company striking a balance between environment-friendly policies and sustainable growth? When are you planning to achieve Net Carbon Zero?

Since inception, Vinati Organics Limited has always focused on being an environment friendly company. The collective intellectual capital of our people has enabled us to have Zero Discharge of effluents in both our plants. Both our plants are certified with ISO 9001:2015; ISO 14001:2015 and ISO 45001:2018.

Recently, we have commissioned a 6.5 MW solar power plant and now we are setting up another 7.5 MW solar power plant, in our efforts towards sustainable growth. n