[ 40 ] | COLUMN
tenants.
ƒ Revisiting the PCPIR model or shifting
to an easier, Cluster approach with
plug & play model will definitely help
in boosting manufacturing with shared
infrastructure. It will help in reducing
environmental damage owing to
CETPs.
ƒ Clarity and parity between Center
and the State w.r.t. policies and their
implementations will play a critical role
in improving EoDB
ƒ Basic issues like availability of land for
Greenfield or brownfield expansion,
easing out local licenses and
processes, lowering cost of energy
and increasing availability of water in
industrial states like Gujarat. Chemical
industry is a continuous and energy
intensive industry. Gujarat, having the
highest number of chemical facilities in
the country, ironically has amongst the
highest rates of Electricity duty.
ƒ Hon’ble PM has a vision to achieve
net-zero emissions by 2070 and
having 500 GW of installed Renewable
energy capacity by 2030. However,
there are several operational hurdles
Securing feedstock and making it available at
competitive prices will give a huge fillip for
domestic chemical manufacturing
Indian Chlor Alkali Industry
Chlor-Alkali is one of the major segments in Inorganic chemicals. It acts as a
basic building block for chemicals industry as a whole. Indian Caustic Soda’s annual
capacity is ~ 6.1 million metric tonnes which accounts for ~5-6% of the global
capacity and is expected to grow in line with the country’s GDP.
Chlor-Alkali has numerous applications in Textiles, Alumina, Organics,
Inorganics, Pesticides, Soap & Detergents, Dyes, Paper & Pulp, Water treatment,
Chemical & Petrochemical processing and Power & Steel.
In 2015-16, imports of caustic soda stood at ~17% of total domestic
consumption however today India has become net exporter of caustic soda in last
4-5 years. This goes on to establish the capability of Indian manufacturers to reduce
dependence on imports and strongly positioning India in the global arena.
This segment is also not insulated from challenges like intermittent cheap
imports, high Energy cost, high Raw material cost and stricter Environmental
regulations.
The Chlor-Alkali Industry in India has been growing a steady rate and its
consumption is expected to further drive its demand globally. Further, with upcoming
capacities and subsequent expansion in downstream, we expect adequate supply
within India and increase in the export footprint.
in setting up captive renewable energy energy, greener technologies, and
plants in different parts of the country. achieve higher ESG standards.
A long term, enabling and favorable The above issues are common across
policy regime with clear directions in the chemical industry. While the government
this regard would further encourage has been working on addressing these, there
manufacturers to adopt renewable are several hurdles still facing this industry.
Going Forward
The Indian chemical industry, today,
is at the cusp of becoming a dominant
global industry. No doubt, its future looks
very promising. I am sure that with a
stable and favourable policy regime from
the Government and with the industry’s
aggressive focus on EHS and R&D, India
will grow to become a safe, sustainable
and vibrant global chemical manufacturing
hub. n
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PLANNING CAPEX OF RS. 250
CRORE IN FY 2023-24
Our team has developed several API intermediates for which we will consider setting up
manufacturing facilities and commercial production in coming times
What are the global trends in Dyes
Intermediate, Dyestuff, Sulphuric
Acid, Chlor-Alkali, and Pharma sector in
2023?
India’s Chemicals and Petrochemicals
(CPC) industry is one of the most
critical and indispensable industries
and a consistent GDP contributor. The
ship of growth has started its journey
from ashore towards a sea of unrealized
potential on the backdrop of amenable
government policies and initiatives and
ever-rising demand and strong markets.
ANKIT S. PATEL This extremely diversified industry is
EXECUTIVE DIRECTOR transforming into a powerhouse, providing
BODAL CHEMICALS LTD. a fertile ground for stakeholders to grow
and thrive.
Talking of global trends, global inflation
is weighing heavily on the end market
textile, paper, pharma, plastic, agrochem,
water treatment, etc. Consumption of end
users’ industries has been sluggish due
to overall slowdown in the global market.
Uncertainty about the European market
has further decelerated the demand
scenario of the chemical industry. When
it comes to China, the policy of zero covid
has slowed the economic growth for a
while.
The global sulphuric acid market
reached a volume of almost 284.4 million
The Saykha greenfield project is
progressing well and is expected to start
by December 2023
metric tons in 2020. The industry is
further expected to grow at a CAGR of
1.5% between 2023 and 2028 to reach
a value of almost 311 million metric tons
by 2026. The major drivers of the industry
such as the rising population, increase in
fertilisers and chemical industry, the rising
demand for the developing regions, and
the increase in the demand from major
consuming industries like agriculture are
expected to aid the market growth.
Chlor Alkali business will continue
to perform well and will contribute
meaningful business in the coming period.
We foresee demand for Caustic Soda to
remain healthy from FMCG, textile, and
paper industries. The global Chlor Alkali
market size grew from US $74.34 billion
in 2022 to US $80.35 billion in 2023 at a
compound annual growth rate (CAGR) of
8.1%. The Russia Ukraine war disrupted
the chances of global economic recovery
from Covid-19 pandemic at least in
the short term. The war between these
countries has led to economic situations in
multiple countries, a surge in commodity
prices, and disruption in supply chain
causing inflation across goods and
services, and affecting many markets on
a global level.
Key milestones achieved by Bodal
Chemicals during FY 2022-23?
Performance of different divisions -
Basic Chemicals, Dyestuff, Dye
Intermediates, Caustic Soda, and
TCCA? Plans for FY 2023-24?
Milestones achieved during FY
2022-23: The company has successfully
completed the technology upgradation of
the Rajpura Chlor Alkali unit. The company
can now meet the increased Caustic Soda

demand for the north India market and also
cut energy costs owing to the technology
upgrade. This will establish the company
for the next growth phase and strengthen
its Chlor Alkali chemical market position.
Performance of different divisions:
Overall business performance for 9M
FY23 has been weak with total revenue
of Rs. 1,178 crores, a de-growth of
20% on a YoY basis. Consumption of
end user industries has been sluggish
due to overall slowdown in the global
market. Uncertainty of the European
market has further decelerated demand
for the chemical scenario of the chemical
industry. Revenue contribution from dye
intermediates chemical stood at Rs. 258
crores in 9M FY23.
Coming to our dyestuff business end
application industries like textile, leather,
paper, and other dyestuff consuming
industries have not been performing well
during the last few quarters. The dyestuff
business for nine months FY23 stood at
Rs. 442 crores.
More than 50% of our basic chemicals
are captively used for dye intermediates.
Overall basic chemicals contributed
around Rs. 134 crores. Chlor Alkali
business performed reasonably well with
a revenue of Rs. 229 crores for the nine-
month FY23.
Plans for FY 2023-24: Completion of
greenfield Saykha project and addition of
Benzene downstream products at Saykha
Location. We anticipate significant quantity
growth in Chlor Alkali business after the
successful completion of technology
upgradation at our Punjab plant.
How have three subsidiaries -
BCTPL, Sen-er Boya, and BCL
China performed in FY 2022-23? Plans
for FY 2023-24?
Most of our subsidiaries have reported
a weak performance due to a soft demand
except for Sener Boya which has reported
total income of Rs. 56 crores in 9M FY23
and has reported noteworthy profitability.
Performance of other subsidiaries has
been lower than expected due to soft
demand.
Plans for FY 2023-24: Due to a
severe earthquake, Turkey is disturbed
and that will not allow us to do growth at
Sen-er Boya. At the same time in the initial
part we have to struggle for breakeven.
No significant improvement is expected
at other subsidiaries due to soft demand
worldwide.
Revenue mix within India and
outside India in FY 2022-23 and do
you see any change in revenue mix in FY
2024-25?
Total revenue stood at Rs. 1, 178
crores for 9M FY23.This Included exports
of 33% and domestic sales of 67%. We
do not expect any significant change in
revenue mix.
Capex investment incurred in FY
2022-23 and projects where it was
invested? Capex plans for FY 2023-24?
For Punjab Rajpura Plant, we spent
about Rs. 150 crore as far as acquisition
is concerned and another Rs. 160 crores
we spent for modernization and capacity
expansion as well as some normal
replacement Capex. In toto, we spent
INTERVIEW | [ 131 ]
a total about Rs. 310 crores in Rajpura
Plant.
The company has invested a Capex
of Rs. 270 crores during FY 2022-23 and
plans to spend Rs. 250 crores during FY
2023-24.
What's the update on the Saykha
green�eldproject for manufacturing
Benzene Derivatives and when are you
planning to restart the Sulphuric Acid &
Derivatives project?
The Saykha greenfield project is
progressing well and is expected to start by
December 2023. Civil structure is almost
completed and detailed engineering of the
process plant is also completed. Major
machineries have already been ordered
and start deliveries of the same by June
2023. Project is going as per revised
schedule.
Currently, we have put the Sulphuric
Acid & Derivatives project on hold seeing
the present situation. Overall demand
for Dyestuff and dyes intermediates is
not good considering the current global
situation. Once we have decent visibility of
demand for our product portfolio and the
new site is stabilized, we will restart the
Sulphuric Acid project.