[ 58 ] | INTERVIEW
“2021 WILL BE A YEAR OF CONSOLIDATION” Madhav Prasad Aggarwal, Promoter, Sajjan India Ltd. shares his perspective on a range of issues that include expansion plans, R&D focus, government policies, and business outlook. Excerpts of the interview:
MADHAV PRASAD AGGARWAL
PROMOTER, SAJJAN INDIA LTD.
What is Sajjan India’s plan to become a top contract manufacturer of speciality chemicals? We have been in this space for the last couple of decades starting with dyes and pigment intermediates. For the last 20 years, we have been into custom manufacturing or contract manufacturing where we obtain technology from foreign partners and fine-tune it. We make it more efficient and competitive than it has been with the inventors, scaling it up as per current manufacturing excellence standards which also means auto-
I think rather than new entrants coming in, existing players who have learned excellence in manufacturing during the last 20-30 years are in a better position to cope with the pressure and invest sensibly. There are a lot of entry barriers when it pertains to the IP situation as well as huge investment needed for the manufacturing of speciality chemicals besides technical know-hows, waste treatment plants, affordability etc. Therefore, I don’t see too many new players entering this space but the existing ones will grow bigger as they are in a better position to take advantage of the business opportunities.
Would you like to brief us about your new manufacturing plant?
mating the plants. Not just during the COVID-19 situation but we were always working on improving technologies and automation. Such activities continue on full-fledged mode and are the best way forward for the chemical industry. We see encouraging opportunities, mainly for existing players who have a proven track record and who can handle complex reactions and hazardous raw materials which I would say is knowledge-based. With the experience, we have gained over time and the fantastic team we have created, we see ourselves being able to perform very efficiently to the satisfaction of our foreign partners.
Industry trends in 2021?
We are setting up a manufacturing plant on a newly acquired 16-acre plot, diagonally opposite to our current site in Ankleshwar, Gujarat. As such Sajjan India has been into chemicals since 1974 but the Ankleshwar plant was commissioned in 1997 and it has since grown steadily. We have more than 500 people on the site now despite the COVID-19 situation. Our team has done an exceptional job since April 2020, operating very safely with no surprises. We hope to commence the manufacturing in the new plant by the end of 2021, as planned and this will be for some new agro-molecules to be produced for the first time in India, involving very complex chemistry and reactions. We are all “We are setting up a very excited and hope new manufacturing to be market leaders in plant on a newly the product segments acquired 16-acre plot, which we anticipate diagonally opposite to be launching by the to our current site in end of FY 2021 and Ankleshwar, Gujarat” FY2022 onwards.
I think it will be a year of consolidation during FY 2020-21 and FY 2021-22 in the sense that Chinese industries have faced immense challenges in the last few years due to environmental and safety reasons. A lot depends on what happens vis-a-vis the Chinese industry as well. Having said that the Indian industry has matured quite a bit and all the new expansions which are being undertaken by the existing players are of very good standards.
that
What is the investment you are planning?
In 2020, we have already invested Rs. 140 - 150 crore. Going forward in 2021, we are planning to invest Rs. 300 crore on expansion. I am glad to mention that we are the only company operating in this space with zero debt and we expect
