[ 54 ] | INTERVIEW
INDIA AS A HUB FOR CHEMICAL MANUFACTURING
Maulik Mehta, CEO, Deepak Nitrite Limited shares his views on global trends, company’s performance, R&D plans, supply chain plans, plans of DPL and DNL, expansion plans ,and CSR activities. Excerpts of the interview:
MAULIK MEHTA
CEO, DEEPAK NITRITE LIMITED
What are the global trends in the chemical sector and how will it impact India? The chemical industry across the globe is undergoing a strategic shift in the supply chain from China to India as a source of raw materials. This presents an opportunity for India to be the global hub for chemical manufacturing. There is an increased focus on downstream value-added products. We expect govt to promote the setting up of new Naphtha cracking units to meet the growing demand for building block chemicals for down-stream industries.
promised to bring PLI in agrochemical manufacture but the government should also include AI (Agro-ingredients) manufacturers for Agrochemicals to complete the value chain and lower our dependence on AI import from China. With the increase in upward mobility and per capita GDP, Indians will not only increase consumption of bulk chemicals that eventually go into end segments like consumer goods and automobiles etc. but it will also consume more of personal care products, Agro-chemicals and inturn speciality chemicals.
Key learnings for the company during COVID-19 and how are you planning to deploy these learnings in 2021?
COVID-19 challenged a lot of preconceived notions of business. The company decided to double down on its responsibility for protecting both the safety and China’s commitment to be Carbon Neu- livelihood of its employees during the tral by 2060 is one major reason for strin- pandemic ensuring that nobody was let gent environmental norms and tighten- go and salaries and wages were not only ing of financing options for polluters. paid in full but even increased to tide This evaporates their erstwhile advantage them through a difficult period. The comand now brings such companies on par pany prepared for worst-case scenarios with Indian environmental and financing and created ‘safety bubbles’ where critical benchmarks. If Indian manufacturers employees would be housed in safe zones can supply quality material in the desired and transported between pre-booked quantity, then this shift of sourcing from houses/hotels and the factories. It also China to India will become sustainable. ramped up social outreach to improve Post-Covid, countries across the globe health and nutrition in villages surroundare focusing on China+ 1 Policy, ing all our facilities. Safety of we expect the Government men, material, and equipto extend the Productivity ment was taken as a top “Deepak Nitrite has Linked Incentive (PLI), priority which helped recently acquired 127scheme to the chemius avoid accidents that acre land in Dahej, which cal sector to capture could arise from limwill be developed over the global market efited manpower and the next couple of years. ficiently. mitigate potential Further, it has plans Trade conflicts damage from Cyclone for medium to large across major economies Nisarg that ravaged the investments each year present an opportunity coastal areas in Mahafor the next 2-3 years” for Indian chemical manurashtra in July’20. facturers to consolidate their We studied the challenges position as a supplier to the global of the lockdown and the reopening of chemical market. the economy in China and chose to priorIndia’s growing per capita consump- itise local employment in contract labour tion and demand for agriculture and phar- and forward booked container and shipmaceutical-related chemicals offer a huge ping rates in anticipation of shortages. scope for the sector. The government has
